Document:

EXHIBIT
10.18

FORM OF
NOTE SALE AGREEMENT

Note
Sale Agreement dated as __________ ___, _____ (this “Agreement”)
by and between JPMorgan Chase Bank, N.A. (the “Seller”)
and [Gerald J. Burnett] [and]  [Gerald J.
Burnett and Marjorie J. Burnett as trustees of The Gerald J. Burnett and
Marjorie J. Burnett Revocable Trust] (individually, or if more than one,
collectively, the “Buyer”).

The
Seller is the holder of the Revolving Credit Promissory Note (Libor/Prime)
dated as of December 23, 2006 executed and delivered by Avistar
Communications Corporation, a Delaware corporation (the “Borrower”),
to the Seller (as from time to time may be amended, modified or replaced, the “Note”).

The
Seller and the Borrower are parties to a Security Agreement dated as of
December 23, 2006 by which the Borrower, among other things, granted the
Seller security interests in the “Collateral” (as defined therein) to secure
the Borrower’s obligations under the Note (as from time to time may be amended,
modified or replaced, the “Security Agreement”).

To
induce the Seller to accept the Note, the Buyer [and [Gerald J. Burnett]
[Gerald J. Burnett and Marjorie J. Burnett as trustees of The Gerald J. Burnett
and Marjorie J. Burnett Revocable Trust] (the together with the Buyer the “Guarantors”)]  delivered to
the Seller its Guaranty dated as of December 23, 2006,  (the “Guaranty”) in
which the [Buyer] [Guarantors] guaranteed payment and performance of the Note
(reference is made to the Guaranty for a complete statement of its terms and
conditions).

The
Seller has made a demand for payment under the Guaranty, and the Buyer has
elected to purchase the Loan by executing and delivering to the Seller this
Agreement on or before the Due Date (the “Offer”).

NOW
THEREFORE, the Buyer (and if more than one, jointly and severally) and the
Seller agree as follows:

1.                                       Definitions:  The following terms shall be defined as
follows:

1.1                                 “Banking
Day” means any  day on which
commercial banks are not authorized or required to close in New York City.

1.2                                 “Closing” means the simultaneous delivery by the Seller and
the Buyer of documents and funds, and the performance of the acts herein
provided to be performed at the Closing.

1.3                                 “Closing Date” means the first (1st) Banking Day after the Seller’s receipt
of the Offer, unless the Seller, in its discretion, deems it necessary to
extend such time.

1.4                                 “Due Date” has the meaning given such term in the Guaranty.

1.5                                 “Facility Documents” has the meaning given such term in the
Note.

1.6                                 “Loan” means the Note and the Security Agreement and the
Seller’s rights thereunder.

1.7                                 “Note Purchase Price” means the principal amount outstanding
under the Note as of the Closing Date, together with any interest thereon, and
any costs and expenses under any Facility Document, all as calculated by the
Seller.

2.                                       Terms and Conditions of Sale:  The Seller agrees to sell, assign, transfer,
and convey to the Buyer, on the terms and conditions set forth in this
Agreement, all the right, title, and interest of the Seller, as of the Closing
Date, in and to the Loan.  The Buyer
acknowledges and agrees (a) that the Seller’s sale of the Loan to the Buyer is
irrevocable and (b) that the Buyer shall have no recourse to the Seller.

3.                                       Note Purchase Price:  The  Buyer shall
pay to the Seller, by 2:00 p.m. (New York City time), by cashier’s check or
wire transfer, the amount of the Note Purchase Price.  All payments of the Note received by the
Seller before the Closing Date shall belong to the Seller.  All payments of the Note received by the
Seller on or after the Closing Date shall belong to the Buyer.  In the event that a draft the Seller has
received in payment of the Note is dishonored after the Closing Date, an
adjustment to the Note Purchase Price in the Seller’s favor shall be made upon
notification by the Seller to the Buyer that the check has been dishonored, and
the Buyer shall promptly forward that amount to the Seller.

4.                                       Place of Closing:  The Closing shall be held at the Seller’s
offices located at 270 Park Avenue, New York, New York, or such other place as may be practicable.  The Closing shall, at the Seller’s option, be
either by telephone, confirmed by letter or wire, or conducted in person at the
place designated by the Seller.

5.                                       Endorsement and Delivery:  The Seller agrees to endorse the Note, and
deliver the endorsed Note to the Buyer, as soon as practicable after the
Closing Date.  The endorsement will be in
the following form:

For value received, pay
to the order of [Gerald J. Burnett] [and]  [Gerald J. Burnett and Marjorie J. Burnett as
trustees of The Gerald J. Burnett and Marjorie J. Burnett Revocable Trust] without
recourse and without any representation or warranty either express or implied
in fact or by law.

	
  

  	
   

  	
  JPMORGAN
  CHASE BANK, N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

After the Closing, the Seller agrees to execute and  deliver to the Buyer any such documents or instruments
reasonably requested by Buyer to transfer to Buyer  all
right, title and interest of Seller in and to the Loan, provided that (i) the
Buyer prepares such documents or instruments at its expense and (ii) the Buyer
provides such documents or instruments to the Seller within thirty (30) days
after the Closing

6.                                       Representations, Warranties and Agreements of the
Buyer:  The Buyer
represents, warrants and agrees as follows:

6.1                                 The
Buyer will not violate any laws relating to unfair credit collection practices
in connection with the Loan.  The Buyer
will indemnify the Seller and hold the Seller harmless from and against any and
all claims, demands, losses, damages, penalties, fines, forfeitures, judgments,
legal fees and any other costs, fees, and expenses heretofore or hereafter
incurred by the Seller as a result of (i) a breach by the Buyer of the
aforesaid agreement or (ii) any claim, demand or assertion that the Buyer or
the Seller was in any way involved in or had in any way authorized any unlawful
collection practices in connection with the Loan or (iii) any claim, demand or
assertion by the Borrower in connection with the Loan.  The Buyer agrees to notify the Seller within
three (3) Banking Days of notice or knowledge of any such claim or demand.

6.2                                 The
Buyer will not institute any legal action in the name of the Seller or continue
to prosecute in the name of the Seller any pending legal action nor shall the
Buyer intentionally or unintentionally, through misrepresentation or
nondisclosure, mislead or conceal that the Buyer’s ownership of the Loan
following the Closing.  The Buyer
acknowledges that there is no adequate remedy at law for violation of this
subparagraph

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and consents to the entry
of an order by a court of competent jurisdiction enjoining any violation or
threatened violation of the provisions of this subparagraph.  The Buyer will indemnify the Seller and hold
the Seller harmless from and against any and all claims, demands, losses,
damages, judgments, legal fees and any other costs, fees and expenses
heretofore or hereafter incurred by the Seller as a result of a breach by the
Buyer of the aforesaid agreement.

6.3                                 The
Buyer’s decision to purchase the Loan is based upon the Buyer’s own independent
evaluation.  The Buyer has made such
independent investigation as the Buyer deems to be warranted into the nature,
validity, enforceability, collectibility, and value of the Loan and all other
facts it deems material to its purchase, and is entering into this transaction
herein provided for, solely on the basis of that investigation and the Buyer’s
own judgment, and is not acting in reliance on any representation of, or
information furnished by the Seller and acknowledges that no employee or
representative of the Seller has been authorized to make any statements or
representations other than those specifically contained in this Agreement.  The Buyer hereby waives any right or cause of
action it might now or in the future have against the Seller as a result of its
purchase of the Loan.

6.4                                 The
Buyer (i) is able to bear the economic risk associated with the purchase of the
Loan, (ii) has adequate information concerning the business and financial condition
of the Borrower or any third party to make an informed decision regarding the
purchase of the Loan, (iii) has such knowledge and experience so as to be aware
of the risks and uncertainties inherent in the purchase of rights and
assumption of liabilities of the type contemplated in this Agreement and (iv)
has independently and without reliance upon the Seller, and based on such
information as the Buyer has deemed appropriate, made its own analysis and
decision to enter into this Agreement. 
The Buyer acknowledges that the Seller has not given the Buyer any
investment advice, credit information or opinion on whether the purchase of the
Loan is prudent.

6.5                                 The
Buyer has full power and authority to execute, deliver and perform its
obligations under, this Agreement and is authorized to enter into this
Agreement.  All laws, rules and
regulations to which the Buyer may be subject have been duly complied
with.  This Agreement has been duly and
validly executed and delivered by the Buyer and constitutes the legal, valid,
and binding obligation of the Buyer, enforceable against the Buyer in
accordance with its terms, except that such enforceability may be limited by
bankruptcy, insolvency, or other similar laws of general applicability
affecting the enforcement of creditors’ rights generally and by the court’s
discretion in relation to equitable remedies.

6.6                                 The
Buyer is an “accredited investor” as that term is defined by the Securities Act
of 1933, as amended.  The Buyer has such
knowledge and experience in financial and business matters, relating to the
ownership and collection of loan assets, that it is capable of evaluating the
merits and risks of a prospective investment in the Loan.  The Buyer acknowledges that the Loan may have
limited or no liquidity and it has the financial capability to hold the Loan
for an indefinite period of time and to bear the economic risks of, including a
complete loss of its investment in, the purchase and acquisition of the Loan.

7.                                       No Recourse or Warranty, Etc.:  The sale of the Loan is made by the Seller
without any representation or warranty either express or implied in fact or by
law.  Any other provisions of this
Agreement to the contrary notwithstanding, the Seller and the Buyer agree that
no guarantee of any kind or type whatsoever, whether made by public, private or
governmental entity, is purchased, acquired, assumed, or in any other manner
transferred or conveyed to the Buyer pursuant to this Agreement.  Further, the Seller has not, does not and
will not make any representations or warranties with regard to compliance with
any, rules, regulations, orders or requirements.  The Buyer acknowledges and agrees that the
sale and assignment of the Loan is made without recourse

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or warranty.  The Seller makes no warranties, covenants or
representation of any sort or in any manner with regard to the Loan, except
that the Seller is the owner and holder of all rights in the Loan to be sold
and assigned and is authorized to consummate such sale by virtue of such rights
and capacity.

8.                                       Files and Records: The Buyer
further agrees as follows:

8.1                                 The
Buyer agrees to abide by all applicable state and federal laws, rules and
regulations regarding the handling and maintenance of all documents and records
relating to the Loan purchased hereunder including, but not limited to, the
length of time such documents and records are to be retained.

8.2                                 After
transfer of documents or files to the Buyer pursuant to the terms of this
Agreement, the Buyer agrees that the Seller shall have the continuing right to
use, inspect, and make extracts from or copies of any such documents or
records, upon the Seller’s reasonable notice to the Buyer.

8.3                                 The
Buyer further agrees to allow the Seller the possession, custody and use of
original documents for any lawful purpose and upon reasonable terms and
conditions.

8.4                                 Before
destruction or disposition of any documents or files transferred hereunder, the
Buyer agrees to give reasonable notice to the Seller and to allow the Seller,
at its own expense, to recover the same from the Buyer.

9.                                       Notice Of Claim:   The Buyer shall immediately notify the Seller
of any claim, threatened claim, or any litigation against the Seller which may
come to its attention.

10.                                 Notices:  Unless otherwise agreed in writing, notices
shall be given to the Seller and the Buyer at their telecopier numbers
(confirmed by telephone to their telephone numbers) or addresses set forth in
the signature page of this Agreement, or such other telecopier (and telephone)
number or address communicated in writing by either such party to the
other.  Notices to the Bank shall be
effective upon receipt.

11.                                 Use of the Seller Name:  The Buyer agrees that it will not use or
permit the use  by its agents, successors or
assigns, of any name or combination of letters which is similar to “JPMorgan
Chase Bank, N.A.”, “Chase” or “JPMCB.”  
The Buyer will not represent or imply that it is affiliated with,
authorized by, or in any way related to the Seller.

12.                                 Severability:  Each part of this Agreement is intended
to be severable.  If any term, covenant,
condition or provision hereof is unlawful, invalid, or unenforceable for any
reason whatsoever, such illegality, invalidity, or unenforceability shall not
affect the legality, validity, or enforceability of the remaining parts of this
Agreement, and all such remaining parts hereof shall be valid and enforceable
and have full force and effect as if the invalid or unenforceable part had not
been included.

13.                                 Construction:  Unless  the
context otherwise requires, singular nouns and pronouns, when used herein,
shall be deemed to include the plural and vice versa, and impersonal pronouns
shall be deemed to include the personal pronoun of the appropriate gender.

14.                                 Assignment:  This Agreement and the terms, covenants,
conditions, provision, obligation, undertaking, rights and benefits hereof,
shall be binding upon, and shall inure to the benefit of, the undersigned
parties and their respective heirs, executors, administrators, representatives
successors, and assigns.  This Agreement
shall not be assigned without the Seller’s prior written consent.

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15.                                 Prior Understandings:  This Agreement supersedes any and all
prior discussions and agreements between the Seller and the Buyer with respect
to the purchase of the Loan and other matters contained herein, and this
Agreement contains the sole and entire understanding between the parties hereto
with respect to the transactions contemplated herein.

16.                                 Survival:  Each  and every
covenant made by the Buyer or the Seller in this Agreement shall survive the
Closing and shall not merge into the closing documents, but instead shall be
independently enforceable.

17.                                 Governing Law; Jurisdiction:  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York.  The Buyer consents to
the nonexclusive jurisdiction and venue of the state or federal courts located
in such state.  In the event of a dispute
hereunder, suit may be brought against the Buyer in such courts or in any
jurisdiction where the Buyer or any of its assets may be located.  Service of process by the Seller in
connection with any dispute shall be binding on the Buyer if sent to the Buyer
by registered mail at the address(es) specified above or to such further
address(es) as the Buyer may specify to the Seller in writing.

18.                                 Counterparts:  This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument.

IN WITNESS WHEREOF, the Seller
and the Buyer have executed this Agreement by their duly authorized officers as
of the date first set forth above.

	
  JPMORGAN CHASE BANK, N.A.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address for Notices to the Bank:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  JPMorgan Chase Bank, N.A.

  Private Bank Credit

  Attn:  Patricia
  DeLeo

  345 Park Avenue, Floor 04

  New York, NY 10154-0004

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  With a courtesy copy to

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  JPMorgan Chase Bank, N.A.

  Attn:  Nancy A. Sheppard

  560 Mission Street, 12th floor

  San Francisco, CA 94105

  	
   

  	
   

  	
   

  

 

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  Gerald J. Burnett

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address for notices:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gerald J. Burnett and Marjorie J. Burnett , as Trustee for

  The Gerald J. Burnett and Marjorie J. Burnett Revocable Trust

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Gerald J. Burnett

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Marjorie J. Burnett

  	
   

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  
	
  Address for notices:

  

 

	
  State of

  	
   

  	
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  ss.:

  	
   

  
	
  County of

  	
   

  	
    )

  	
   

  	
   

  

 

On the ____ day of
____________ in the year 200__, before me, the undersigned, personally appeared Gerald J. Burnett, personally known to me
or proved to me on the basis of satisfactory evidence to be the individual
whose name is subscribed to the within instrument and acknowledged to me that
he/she executed the same in his/her capacity, and that by his/her signature on
the instrument, the individual, or the person upon behalf of which the
individual acted, executed the instrument.

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Notary Public

  

 

	
  State of

  	
   

  	
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  ss.:

  	
   

  
	
  County of

  	
   

  	
    )

  	
   

  	
   

  

 

On the ____ day of ____________ in the year 200__, before me, the
undersigned, personally appeared Marjorie
J. Burnett, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he/she executed the same in
his/her capacity, and that by his/her signature on the instrument, the
individual, or the person upon behalf of which the individual acted, executed
the instrument.

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Notary Public

  

 

 6EXHIBIT 10.19

 

LEASE
AGREEMENT

This
Lease, made this    1st       day of        December                   , 2006 between   CROSSROADS ASSOCIATES AND CLOCKTOWER
ASSOCIATES                            ,
hereinafter called Landlord, and     AVISTAR COMMUNICATIONS CORPORATION, a
Delaware Corporation, hereinafter called Tenant.

WITNESSETH:

Landlord
hereby leases to Tenant and Tenant hereby hires and takes from Landlord those
certain premises (the “Premises”) outlined in red on Exhibit “A-1 and A-2”,
attached hereto and incorporated herein by this reference thereto more
particularly described as follows:

Approximately
21,711 square feet of rentable space (which includes Tenant’s prorata share of
building common areas) located on the tenth entire (10th) floor (approximately 17,702 square feet) and a
portion of the first (1st)
floor (approximately 4,009 square feet) of the “Building” located at 1875 South
Grant Street, San Mateo, San Mateo County, California.  Tenant’s Suite Numbers in the Building on the
tenth (10th) and first (1st) floors shall be 1000 and 130 respectively.

As used herein the Complex shall
mean and include all of the land outlined in red and described in Exhibit “B”,
attached hereto, and all of the buildings, improvements, fixtures and equipment
now or hereafter situated on said land.

Said
letting and hiring is upon and subject to the terms, covenants and conditions
hereinafter set forth and Tenant covenants as a material part of the
consideration for this Lease to perform and observe each and all of said terms,
covenants and conditions.  This Lease is
made upon the conditions of such performance and observance.

1.             Tenant shall use the
Premises only in conformance with applicable governmental laws, regulations,
rules and ordinances for the purpose of            General Office, Storage,
Distribution, Marketing  and other
legally related uses           and
for no other purpose.  Tenant shall not
do or permit to be done in or about the Premises or the Complex nor bring or
keep or permit to be brought or kept in or about the Premises or the Complex
anything which is prohibited by or will in any way increase the existing rate
of (or otherwise affect) fire or any insurance covering the Complex or any part
thereof, or any of its contents, or will cause a cancellation of any insurance
covering the Complex or any part thereof, or any of its contents.  Tenant shall not do or permit to be done
anything in, on or about the

 

Premises or the Complex which will in any way unreasonably obstruct or
interfere with the rights of other tenants or occupants of the Complex or
injure or unreasonably annoy them, or use or allow the Premises to be used for
any improper, immoral, unlawful or unreasonably objectionable purpose, nor
shall Tenant cause, maintain or permit any nuisance in, on or about the
Premises or the Complex.  No sale by
auction shall be permitted on the Premises. 
Tenant shall not place any loads upon the floors, walls, or ceiling,
which endanger the structure, or place any harmful fluids or other materials in
the drainage system of the building, or overload existing electrical or other
mechanical systems.  No waste materials
or refuse shall be dumped upon or permitted to remain upon any part of the
Premises or outside of the building in which the Premises are a part, except in
trash containers placed inside exterior enclosures designated by Landlord for
that purpose or inside of the building proper where designated by
Landlord.  No materials, supplies,
equipment, finished products or semi-finished products, raw materials or
articles of any nature shall be stored upon or permitted to remain outside the
Premises or on any portion of common area of the Complex.  No loudspeaker or other device, system or
apparatus which can be heard outside the Premises shall be used in or at the
Premises without the prior written consent of Landlord.  Tenant shall not commit or suffer to be
committed any waste in or upon the Premises. 
Tenant shall indemnify, defend and hold Landlord harmless against any
loss, expense, damage, attorney’s fees, or liability arising out of failure of
Tenant to comply with any applicable law applicable to the use of the Premises
by Tenant.  Tenant shall comply with any
covenant, condition, or restriction (“CC&R’s”) affecting Tenant’s
activities within the Premises.  The
provisions of this paragraph are for the benefit of Landlord only and shall not
be construed to be for the benefit of any tenant or occupant of the Complex.

 

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2.             TERM

 

A.  The term of this Lease shall be for a period of    Sixty   
(60) months (unless sooner terminated as hereinafter provided) and,
subject to Paragraph 2(B) and shall commence on the   1st    
 day of     April     
, 2007  and end on the     31st    
day of   March     , 2012.

B.                   Possession of the Premises shall be tendered and
the term of this Lease shall commence on April 1, 2007.  Commencing upon the full execution of
this Lease Agreement, Tenant shall have
access to the Premises prior to April 1, 2007 for the installation of
furniture, telephone and computer related equipment and such access shall be subject to all the terms and conditions of the
Lease, excluding the payment of Basic Rent and Additional Rent.   It is hereby understood and agreed
that Tenant’s activities during this Early Access Period shall not interfere with
or delay Landlord’s construction of the improvements described in Paragraph 8
below.  In
the event Tenant Improvements, as described below in Paragraph 8 herein, are
substantially completed prior to April 1, 2007, Tenant is herein granted the right to occupy the Premises during the
Early Access Period with operating personnel subject to all the terms and
conditions of the Lease.  During this
early occupancy with operating personnel, Tenant will only be responsible for
the payment of Additional Rent prior to April 1, 2007.  In
the event Tenant occupies the Premises early, as provided for herein,
nevertheless the commencement date of the Lease shall remain April 1, 2007.

C.                                    OPTION TO EXTEND

Provided
Tenant is in occupancy of at least eighty (80%) percent of the Premises and not
in default on any of the terms, covenants or conditions of this Lease, and
subject to the terms and conditions set forth hereafter, Tenant is granted the
option to extend the term of Lease on the Premises to March 31, 2017 on the following
terms and conditions:

(a)                                  On
or before October 1, 2011, Tenant shall notify Landlord in writing of Tenant’s
exercise of this option to extend the term of the Lease to March 31, 2017.

(b)                                 The
extended term of the Lease shall commence on April 1, 2012 and shall terminate
on March 31, 2017.

(c)                                  The Basic Rent, as of the commencement date of
the Extended Term of the Lease, shall be the then prevailing market rate for
similar Class A office space in San Mateo and Foster City with annual
adjustments at the rate of increase then being charged in the market for
similar space.

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(d)                                 The
then current payment for Additional Rent described in Paragraph 4D of the Lease
shall continue to be paid and adjusted according to Paragraph 4D of this Lease.

(e)                                  This option to extend can be exercised only by
Avistar Communications Corporation,  a
Delaware Corporation, a parent, subsidiary or an affiliate, for its sole use of
the Premises and may not be transferred or assigned to any sublessee or other
party, nor may this option be exercised by Avistar Communications
Corporation,  a Delaware Corporation, for
the use of the Premises by any sublessee or party other than Avistar
Communications Corporation,  a Delaware
Corporation, occupying the Premises as of the commencement date of any extended
Term.

3.             POSSESSION  If Landlord, for any reason whatsoever (other
than Landlord’s breach of this Lease), cannot deliver possession of said
Premises to Tenant at the scheduled commencement of said term, as hereinbefore
specified, this Lease shall not be void or voidable; nor obligation of Tenant
shall be affected thereby; nor shall Landlord or Landlord’s agents be liable to
Tenant for any loss or damage resulting therefrom; but in that event the
commencement and termination dates of the Lease, and all other dates affected
thereby (including rent adjustment dates) shall be revised to conform to the
date of Landlord’s delivery of possession in the condition described in
Paragraph 8, as specified in Paragraph 2 (b), above.  The above, is, however, subject to the
provision that the period of delay of delivery of the Premises shall not exceed
15 days from the scheduled commencement date herein (except those delays
caused by Acts of God, strikes, war, utilities, governmental bodies, weather,
unavailable materials, and delays beyond Landlord’s control shall be excluded
in calculating such period) in which instance Tenant, at its option, may, by
written notice to Landlord, terminate this Lease whereupon any monies
previously paid by Tenant to Landlord shall be reimbursed to Tenant upon
demand.  In addition, for each day that
the date the Premises are Ready For Occupancy is delayed beyond April 1, 2007
for any reason (including force majeure events), the date the Tenant is
otherwise obliged to commence payment of Basic Monthly Rent shall be delayed by
one day for each day of such delay.

4.             RENT

A.  Basic Rent.  Tenant agrees to pay to Landlord at such
place as Landlord may designate without deduction, offset, prior notice, or
demand on the first (1st) day
of each calendar month of the term of this Lease, and Landlord agrees to accept
as Basic Rent for the leased Premises the total sum of _Two Million Two
Hundred Seventy One Thousand Two Hundred Twenty and 20/100_____Dollars
($2,271,220.20) in lawful money of the United States of America, payable as
follows::

	
  $34,620.45

  	
  shall be due and payable upon execution of this
  Lease and represents payment of the Basic Rent for the first month of the
  lease term from April 1, 2007 through April 30, 2007.

  

 

 4
 

 

The following amounts shall be due and payable on or before the first
day of each month of the lease term thereafter as indicated for the time
periods described:

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Basic Rent - Suite 1000

  	
   

  	
  Basic Rent - Suite 130

  	
   

  	
  Total Basic Rent

  	
   

  
	
  

  	
   

  	
  17,702 RSF

  	
   

  	
  4,009 RSF

  	
   

  	
  21,711 RSF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4/1/07 to

  	
   

  	
  $29,208.30

  	
   

  	
  $5,412.15

  	
   

  	
  $34,620.45

  	
   

  
	
  3/31/08

  	
   

  	
  @ $1.65 NNN

  	
   

  	
  @ $1.35 NNN

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4/1/08 to

  	
   

  	
  $30,624.46

  	
   

  	
  $5,612.60

  	
   

  	
  $36,237.06

  	
   

  
	
  3/31/09

  	
   

  	
  @ $1.73 NNN

  	
   

  	
  @ $1.40 NNN

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4/1/09 to

  	
   

  	
  $32,040.62

  	
   

  	
  $5,813.05

  	
   

  	
  $37,853.67

  	
   

  
	
  3/31/2010

  	
   

  	
  @ $1.81 NNN

  	
   

  	
  @ $1.45 NNN

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4/1/2010to

  	
   

  	
  $33,456.78

  	
   

  	
  $6,013.50

  	
   

  	
  $39,470.28

  	
   

  
	
  3/31/2011

  	
   

  	
  @ $1.89NNN

  	
   

  	
  @ $1.50 NNN

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4/1/2011to

  	
   

  	
  $34,872.94

  	
   

  	
  $6,213.95

  	
   

  	
  $41,086.89

  	
   

  
	
  3/31/2012

  	
   

  	
  @ $1.97 NNN

  	
   

  	
  @ $1.55 NNN

  	
   

  	
   

  	
   

  

 

B.  Time for Payment.  In the event that the term of this Lease
commences on a date other than the first day of a calendar month, on the date
of commencement of the term hereof Tenant shall pay to Landlord as rent for the
period from such date of commencement to the first day of the next succeeding
calendar month that proportion of the monthly rent hereunder which the number
of days between such date of commencement and the first day of the next
succeeding calendar month bears to thirty (30). 
In the event that the term of this Lease for any reason ends on a date
other than the last day of a calendar month, on the first day of the last
calendar month of the term hereof Tenant shall pay to Landlord as rent for the
period from said first day of said last calendar month to and including the
last day of the term hereof that proportion of the monthly rent hereunder which
the number of days between said first day of said last calendar month and the
last day of the term hereof bears to thirty (30).

C.  Late charge.  Notwithstanding any other provision of this
Lease, if Tenant is in default in the payment of rent as set forth in this
Paragraph 4 when due, or any part thereof, Tenant agrees to pay Landlord, in
addition to the delinquent rental due, a late charge for each rental payment in
default ten (10) days after written notice. 
Said late charge shall equal ten 
(10%) percent of each rental payment so in default.

 5
 

 

D.  Additional Rent.  Beginning with the commencement date of the
term of this Lease, Tenant shall pay to Landlord in addition to the Basic Rent
and as Additional Rent the following:

 

(1)           Tenant’s proportionate share of all utilities relating to
the Complex as set forth in Paragraph 11, and

 

(2)           Tenant’s
proportionate share of all Taxes relating to the Complex as set forth in
Paragraph 12, and

(3)                                  Tenant’s
proportionate share of all insurance premiums relating to the Complex, as set
forth in Paragraph 15, and

(4)                                  Tenant’s
proportionate share of expenses for the operation, management, maintenance and repair
of the Building (including common areas of the Building) and Common Areas of
the Complex in which the Premises are located as set forth in Paragraph 7, and

(5)                                  All
charges, costs and expenses, which Tenant is required to pay hereunder,
together with all interest and penalties, costs and expenses including attorney’s
fees and legal expenses, that may accrue thereto in the event of Tenant’s
failure to pay such amounts, and all damages, reasonable costs and expenses
which landlord may incur by reason of default of Tenant or failure on Tenant’s
part to comply with the terms of this Lease. 
In the event of nonpayment by Tenant of Additional Rent, Landlord shall
have all the rights and remedies with respect thereto as Landlord has for
nonpayment of rent.

Tenant shall pay to Landlord
monthly, in advance,  Tenant’s prorata
share of an amount estimated by Landlord to be Landlord’s approximate average
monthly expenditure for such Additional Rent items, which estimated amount
shall be reconciled at the end of each calendar year as compared to Landlord’s
actual expenditure for said Additional Rent items, with Tenant paying to
Landlord, upon demand, any amount of actual expenses expended by Landlord in
excess of said estimated amount, or Landlord refunding to Tenant any amount of
estimated payments made by Tenant in excess of Landlord’s actual expenditures
for said Additional Rent items.

Tenant’s
payment for such Additional Rent as of the commencement of the Term of this
Lease shall be       Twenty Thousand Eight Hundred Forty Two and
56/100     ($20,842.56) Dollars per
month ($0.96  x  21,711 s.f. 
=  $20,842.56).

Any payments required to be made
by Tenant for Additional Rent shall be made by check or instrument separate
from that check or instrument used by Tenant to make any payments for Basic
Rent pursuant to paragraph 4 A.

The
respective obligations of Landlord and Tenant under this paragraph shall
survive the expiration or other termination of the term of this Lease, and if
the term hereof shall expire or shall otherwise terminate on a day other than
the last day of a calendar year, the actual Additional Rent incurred for the
calendar year in which the term hereof expires or otherwise terminates shall be
determined and settled on the basis of the statement of actual Additional Rent
for such calendar year and shall be prorated in the proportion which the number
of days in such calendar year preceding such expiration or termination bears to
365.

E.  Place of Payment of Rent
and Additional Rent.  All
Basic Rent hereunder and all payments hereunder for Additional Rent shall be
paid to Landlord at the office of Landlord at 1875 South Grant Street, Suite
100, San Mateo, CA 94402, or to such other person or to such other place as
Landlord may from time to time designate in writing.

 6
 

 

F.  Security Deposit.
Concurrently with Tenant’s execution of this Lease, Tenant shall deposit with
Landlord the sum of        Fifty Five
Thousand and 00/100_ ($55,000.00) Dollars (the “Security Deposit”).  Said sum shall be held by Landlord as a
Security Deposit for the faithful performance by Tenant of all the terms,
covenants, and conditions of this Lease to be kept and performed by Tenant
during the term hereof.  If Tenant
defaults with respect to any provisions of this Lease, including, but not
limited to, the provisions relating to the payment of rent and any of the
monetary sums due herewith, Landlord may (but shall not be required to ) use,
apply or retain all or any part of this Security Deposit for the payment of any
other amount which Landlord may spend by reason of Tenant’s default or to
compensate Landlord for any other loss or damage which Landlord may suffer by
reason of Tenant’s default.  If any
portion of said Deposit is so used or applied, Tenant shall, within ten (10)
days after written demand therefor, deposit cash with Landlord in the amount
sufficient to restore the Security Deposit to its original amount.  Tenant’s failure to do so shall be a material
breach of this Lease.  Landlord shall not
be required to keep this Security Deposit separate from its general funds, and
Tenant shall not be entitled to interest on such Deposit.  The Security Deposit or any balance thereof
after application by Landlord to Tenant’s default(s), shall be returned to
Tenant (or at Landlord’s option, to the last assignee of Tenant’s interest
hereunder) at the expiration of the Lease term and after Tenant has vacated the
Premises.  In the event of termination of
Landlord’s interest in this Lease, Landlord shall transfer said Deposit to
Landlord’s successor in interest whereupon Tenant agrees to release Landlord
from liability for the return of such Deposit or the accounting therefor.

 

5.             RULES AND REGULATIONS AND COMMON
AREA  Subject to the terms and
conditions of this Lease and such reasonable Rules and Regulations as Landlord
may from time to time prescribe, Tenant and Tenant’s employees, invitees and
customers shall, in common with other occupants of the Complex in which the
Premises are located, and their respective employees, invitees and customers,
and others entitled to the use thereof, have the non-exclusive right to use the
access roads, parking areas, and facilities provided and designated by Landlord
for the general use and convenience of the occupants of the Complex in which
the Premises are located, which areas and facilities are referred to herein as “Common
Area”  This right shall terminate upon
the termination of this Lease.  Landlord
reserves the right from time to time to make changes in the shape, size,
location, amount and extent of Common Area. 
Landlord further reserves the right to promulgate such reasonable rules
and regulations relating to the use of the Common Area, and any part or parts
thereof, as Landlord may deem appropriate for the best interests of the
occupants of the Complex.  The Rules and
Regulations shall be binding upon Tenant upon delivery of a copy of them to
Tenant, and Tenant shall abide by them and cooperate in their observance.  Such Rules and Regulations may be reasonably
amended by Landlord from time to time, with or without advance notice, and all
amendments shall be effective upon delivery of a copy to Tenant.  Landlord shall not be responsible to Tenant
for the non-performance by any other tenant or occupant of the Complex of any
of said Rules and Regulations.

Landlord
shall operate, manage and maintain the Common Area.  The manner in which the Common Area shall be
maintained and the expenditures for such maintenance shall be consistent with
comparable buildings and at the discretion of Landlord.

 7
 

 

6              PARKING  Tenant shall have the right at no
charge to use with other tenants or occupants of the Complex 69
undesignated parking spaces in the common parking areas of the Complex. Tenant
agrees that Tenant, Tenant’s employees, agents, representatives and/or invitees
shall not use parking spaces in excess of said 69 spaces allocated to
Tenant hereunder.  Landlord shall have
the right, at Landlord’s sole discretion, to specifically designate the
location of Tenant’s parking spaces within the common parking areas of the Complex
(but in a non-discriminatory manner) in the event of a dispute among the
tenants occupying the building and/or Complex referred to herein, in which
event Tenant agrees that Tenant, Tenant’s employees, agents, representatives
and/or invitees shall not use any parking spaces other than those parking
spaces specifically designated by Landlord for Tenant’s use.  Said parking spaces, if specifically
designated by landlord to Tenant, may be relocated by Landlord at any time, and
from time to time.  Landlord reserves the
right, at Landlord’s sole discretion, to rescind any specific designation of
parking spaces, thereby returning Tenant’s parking spaces to the common parking
area.  Landlord shall give Tenant written
notice of any change in Tenant’s parking spaces.  Tenant shall not, at any time, park, or
permit to be parked, any trucks or vehicles adjacent to the loading areas so as
to interfere in any way with the use of such areas, nor shall Tenant at any
time park, or permit the parking of Tenant’s trucks or other vehicles or the
trucks and vehicles of Tenant’s suppliers or others, in any portion of the
common area not designated by Landlord for such use by Tenant.  Tenant shall not park not permit to be
parked, any inoperative vehicles or equipment on any portion of the common
parking area or other common areas of the Complex.  Within 48 hours following notice to Tenant,
Tenant agrees to ensure compliance by its employees with the parking provision
contained herein.  If Tenant or its
employees park in other than such designated parking areas and fails to cure
within 48 hours, then Landlord may charge Tenant, as an additional charge, and
Tenant agrees to pay, ten ($10.00) Dollars per day for each day or partial day
each such vehicle is parked in any area other than that designated.  Tenant hereby authorizes Landlord at Tenant’s
sole expense to tow away from the Complex any vehicle belonging to Tenant or
Tenant’s employees parked in violation of these provisions, or to attach
violation stickers or notices to such vehicles. 
Tenant shall use the parking areas for vehicle parking only, and shall
not use the parking areas for storage.

 

7.             EXPENSES OF OPERATION, MANAGEMENT
AND MAINTENANCE OF THE COMMON AREAS OF THE COMPLEX, PREMISES AND BUILDING IN
WHICH THE PREMISES ARE LOCATED  Landlord
shall maintain the Common Areas, the Building and the Premises in condition and
repair comparable to similar buildings. 
As Additional Rent and in accordance with Paragraph 4 D of this Lease,
Tenant shall pay to Landlord Tenant’s proportionate share (calculated on a
square footage or other equitable basis) of all expenses of operation,
management, maintenance and repair of the Common Areas of the Complex
including, but not limited to, license, permit and inspection fees; security; utility
charges associated with exterior landscaping and lighting (including water and
sewer charges); all charges incurred in the maintenance of landscaped areas,
lakes, parking lots, sidewalks, driveways; maintenance, repair and replacement
of all fixtures and electrical, mechanical and plumbing systems; structural
elements and exterior

 8
 

 

surfaces of the buildings; salaries and employees benefits of personnel
and payroll taxes applicable thereto; supplies, materials, equipment and tools;
the cost of capital expenditures which have the effect of reducing operating
expenses, provided, however, that in the event Landlord makes such capital
improvements, Landlord shall amortize its investment in said improvements
(together with interest at the rate of eight (8%) percent per annum on the
unamortized balance) as an operating expense in accordance with standard
accounting practices, provided, that such amortization is not a rate greater
than the anticipated savings in the operating expenses and further provided that
any applicable reserve shall be applied before the charge is made.

 

                As
Additional Rent and in accordance with paragraph 4D of this Lease, Tenant shall
pay its proportionate share (calculated on a square footage or other equitable
basis) of the cost of operation (including common utilities), management,
maintenance and repair of the Premises and the building (including common areas
such as lobbies, restrooms, janitor’s closets, hallways, elevators, mechanical
and telephone rooms, stairwells, entrances, spaces above the ceilings) in which
the Premises are located.  The
maintenance items herein referred to include, but are not limited to,
janitorization, electrical systems (such as outlets, lighting fixtures, lamps,
bulbs, tubs, ballasts), heating and airconditioning controls (such as mixing
boxes, thermostats, time clocks, supply and return grills), all interior
improvements within the Premises including but not limited to: wall coverings,
window coverings, acoustical ceilings, vinyl tile, carpeting, partitioning,
doors (both interior and exterior, including closing mechanisms, latches,
locks), and all other interior improvements of any nature whatsoever, all
windows, window frames, plate glass, glazing, truck doors, main plumbing
systems of the building (such as water and drain lines, sinks, toilets,
faucets, drains, showers and water fountains), main electrical systems (such as
panels and conduits), heating and air conditioning systems (such as
compressors, fans, air handlers, ducts, boilers, heaters), store fronts, roofs,
downspouts, building common area interiors (such as wall coverings, window
coverings, floor coverings and partitioning), ceilings, building exterior
doors, skylights (if any), automatic fire extinguishing systems and elevators;
license, permit, and inspection fees; security; salaries and employee benefits
of personnel and payroll taxes applicable thereto; supplies, materials,
equipment and tools; the cost of capital expenditures which have the effect of
reducing operating expenses, provided, however, than in the event Landlord
makes such capital improvements, Landlord may amortize its investment in said
improvements (together with interest at the rate of eight (8%) percent per
annum on the unamortized balance) as an operating expense in accordance with
standard accounting practices, provided, that such amortization is not at a
rate greater than the anticipated savings in the operating expenses.  Tenant hereby waives all rights under, and
benefits of, subsection 1 of Section 1932 and Section 1941 and 1942 of the
California Civil Code and under any similar law, statute or ordinance now or
hereafter in effect.  Tenant agrees to
provide carpet shields under all rolling chairs or to otherwise be responsible
for wear and tear of the carpet caused by such rolling chairs if such wear and
tear exceeds that caused by normal foot traffic in surrounding areas.  Areas of excessive wear shall be replaced at
Tenant’s sole expense upon Lease termination.

 9
 

 

“Additional Rent” as used herein
shall not include and notwithstanding anything to the contrary in this Lease
Tenant shall have no obligation to pay, reimburse Landlord for, or otherwise
perform any of the following repairs, replacements, costs, or expenses
(collectively “costs”):

 

A.                                    Landlord’s debt repayments; interest on charges;

 

B.                                      Costs and expenses directly or indirectly incurred
by Landlord for the benefit of any other tenant; cost for the installation of
partitioning or any other tenant improvements; and/or cost of attracting
tenants;

C.                                      Depreciation

D.                                     Debt
or ground lease payments, costs, fees or expenses, or any interest thereon;

E.                                       Executive
salaries and other wages, salaries, compensation, and labor burden for any
employee not stationed on the Complex on a full-time basis or any fee, profit
or compensation retained by Landlord or its affiliates for management and
administration of the Complex; other than a 3% management fee to an affiliate
of Landlord.

F.                                       Costs
occasioned by the act, omission or violation of Law by Landlord, any other
occupant of the Complex, or their respective agents, employees or contractors.

G.                                      Costs
occasioned by fire, acts of God, or other casualties or by the exercise of the
power of eminent domain.

H.                                     Lease
payments and costs for capital machinery and equipment, such as air
conditioners, elevators, and the like and other costs relating to repairs,
alterations, improvements, equipment and tools which could properly be
capitalized under generally accepted accounting principles, except to the
extent that (i) the foregoing reduces the expenses otherwise payable by
Tenant under the Lease and (ii) Tenant’s share of such Cost during any
twelve-month period of the Lease is does not exceed the amortized cost of the
item over its useful life, based on the interest rate described above.

I.                                          Costs
reasonably recoverable from others and costs for which Tenant reimburses
Landlord directly or which Tenant pays directly to a third person.

J.                                         Costs
to place the Premises in the delivery condition required by this Lease, costs
to correct any construction defect in the Complex or to comply with any
CC&R’s, underwriter’s requirement or Law applicable to the Premises or the
Complex as of the Commencement Date.

 

 

 10

 

K.                                     Costs
(i) arising from the disproportionate use of any utility or service
supplied by Landlord to any other occupant of the Complex, or
(ii) associated with utilities and services of a type not provided to
Tenant.

 

L.                                       Fees,
commissions, attorneys’ fees, costs or other disbursements incurred in
connection with negotiations or disputes with any other occupant of the Complex
and Costs arising from the violation by Landlord or any occupant of the Complex
(other than Tenant) of the terms and conditions of any lease or other
agreement.

 

M.                                  Insurance
premiums for coverage not customarily paid by tenants of similar projects in
the vicinity of the Premises, increases in insurance Costs caused by the
activities of another occupant of the Complex, insurance deductibles exceeding
$10,000, and co-insurance payments.

 

N.                                     Costs
incurred with respect to any Hazardous Material, except as set forth in
Paragraph 43.

 

Landlord
agrees to provide five-day janitorial service for the leased Premises and to
maintain the Complex in a first-class manner.

8.             ACCEPTANCE AND SURRENDER OF
PREMISES  As of the
commencement date, the  building shall be
water tight, structurally sound and all of the electrical, mechanical, HVAC,
plumbing, elevator and other systems serving the Premises shall be in good
condition and repair (herein “good condition and repair”).  Except as expressly required of Landlord in
this Lease, by entry hereunder, Tenant accepts the Premises as being in good
and sanitary order, condition and repair and accepts the building and
improvements included in the Premises in their present condition and without
representation or warranty by Landlord as to the condition of such building or
as to the use or occupancy which may be made thereof.  Any exceptions to the foregoing must be by
written agreement executed by Landlord and Tenant.  Provided Landlord performs its obligation
under the first sentence of this Section, Tenant agrees on the last day of the
Lease term, or on the sooner termination of this Lease, to surrender the Premises
promptly and peaceably to Landlord in “good condition and repair” as defined
above, damage by Acts of God, fire, Hazardous Materials (other than Tenant’s
Hazardous Materials), repairs that are Landlord’s responsibility under this
Lease, and normal wear and tear excepted, with all interior walls repaired, if
damaged; the special air conditioning equipment serviced by a reputable and
licensed service firm and in good operating condition (provided the maintenance
of such equipment has been Tenant’s responsibility during the term of this
Lease) together with all alterations, additions and improvements which may have
been made in, to, or on the Premises (except movable trade fixtures installed
at the expense of Tenant) except that Tenant shall ascertain from Landlord at
the time of Tenant’s request for Alterations whether Landlord desires to have
the  Premises or any part or parts
thereof restored to their condition and configuration prior to Alteration and
if Landlord shall so desire, then Tenant shall restore said Premises or such
part or parts thereof before the end

 11
 

 

of this Lease at Tenant’s sole cost and expense (damage by Acts of God,
fire, Hazardous Materials (other than tenant’s Hazardous Materials), repairs
that are Landlord’s responsibility under this Lease and normal wear and tear
excepted).  Tenant, on or before the end
of the term or sooner termination of this Lease, shall remove all of Tenant’s
personal property and trade fixtures from the Premises, and all property not so
removed on or before the end of the term or sooner termination of this Lease
shall be deemed abandoned by Tenant and title to same shall thereupon pass to
Landlord without compensation to Tenant. 
Landlord may, upon termination of this Lease, remove all moveable
furniture and equipment so abandoned by Tenant, at Tenant’s sole cost, and
repair any damage caused by such removal at Tenant’s sole cost.  If the Premises are not surrendered at the
end of the term or sooner termination of this Lease, then except to the extent
arising out of the breach of this Lease, negligence or willful misconduct of
Landlord, its respective agents, employees, contractors or invitees, Tenant
shall indemnify Landlord against loss or liability resulting from the delay by
Tenant in so surrendering the Premises including, without limitation, any
claims made by any succeeding tenant founded on such delay.  Nothing contained herein shall be construed
as an extension of the term hereof or as a consent of Landlord to any holding
over by Tenant.  The voluntary or other
surrender of this Lease or the Premises by Tenant or a mutual cancellation of
this Lease shall not work as a merger and, at the option of Landlord, shall
either terminate all or any existing subleases or subtenancies or operate as an
assignment to Landlord of all or any such subleases or subtenancies.

 

Except as expressly set forth in
this Lease, TENANT AGREES TO LEASE THE PREMISES IN AN “AS
IS” CONDITION, and any other alteration or modifications to the
Premises shall be made in accordance with Paragraphs 8 & 9 of the Lease and
shall not delay the commencement of the Lease nor delay the payment of rent and
all such modifications shall be at Tenant’s sole cost and expense.
Notwithstanding anything in this Lease to the contrary, Tenant shall not be responsible
to pay for the repair of the building due to lack of compliance to any
applicable law, as of the commencement date. 
Notwithstanding anything
herein to the contrary, Landlord at Landlord’s sole cost and expense agrees to
perform the following Improvements as indicated below:

A.            The
Premises are configured with existing furniture, as shown on Exhibit C
(Furniture Plan) attached hereto.  All
offices, cubicles and conference rooms within the Premises are already wired
for voice and data and said wiring terminates in the server room.  There are 3 cables in a drop to each office,
cubicle and conference room, (2) CAT5 cables for data and (1) CAT3 cable split
for two voice lines.  Tenant shall pay
for any additional wiring or upgrades.

B.            Landlord shall provide the Premises
with furniture in the configuration, as shown and detailed on the list attached hereto as Exhibit “C” (Furniture and
Equipment Inventory List) and hereinafter referred to as “the Furniture.”  Tenant shall be allowed free use of the furniture
during the term of the Lease.  Tenant agrees to repair any damage to the
furniture caused by Tenant during the Term of this Lease, normal wear and tear
excepted.  Any reconfiguration of the
furniture subsequent to the initial reconfiguration necessitated by Tenant’s
initial requested improvements or additional furniture required by Tenant shall
be at Tenant’s sole cost and expense.

 12
 

Construction of the
supply/copy room (Item C below) and Quality Assurance Lab (Item D below), as
shown on Exhibit D attached hereto, will necessitate the removal of the
workstations, as shown in red on Exhibit C (Furniture Plan), attached
hereto.  The workstations, removed from
the Suite 1000 to accommodate construction of Tenant Improvements, shall be
made available for Tenant’s use in Suite 130 (see Exhibit F attached
hereto).  With respect to the furniture
placed in Suite 130, Tenant shall be allowed free use of the furniture during
the term of the Lease subject to the same conditions outlined above for the
furniture in Suite 1000.  Tenant will be
responsible for the cost of wiring Suite 130 with workstations using Landlord’s
furniture from Suite 1000 and whatever additional workstations that may be
required by Tenant.

C.                                      Construction
of a supply/copy room (approximately 16’ x 8’) adjacent to the reception area,
as shown on Exhibit  D, attached hereto.

 

D.                                     Construction
of a Quality Assurance Lab, as shown on Exhibit D, attached hereto.  The Quality Assurance Lab to have anti-static
floor covering.

 

E.                                       The
installation of a ceiling mounted 5 ton cooling HVAC unit for the Quality
Assurance Lab.  In accordance with the
provisions of Paragraph 11 herein, the server room will be separately metered
to measure the amount of electricity being used by Tenant.

 

F.                                       Construction
of four offices and a demising wall to enclose an area in Suite 130, as shown
on Exhibit E, attached hereto.  The
office side of the demising wall shall be carpeted with the existing carpet.
The shipping and receiving side of the demising wall shall have VCT floor
covering.

 

G.                                      Patch
and paint walls, as needed, throughout the Premises.

 

H.                                     Steam
clean carpet throughout Suite 1000.

 

I.                                          Remodeling
of the 10th floor elevator lobby, including the installation of new building
standard entry doors.

 

J.                                         Landlord
to provide the initial building standard signs for Tenant on the first floor
lobby touch screen directory for Suite 130 and Suite 1000, tenth floor
directory and door signage for Suite 130 and Suite 1000.  All subsequent requests for signs shall be at
Tenant’s sole cost and expense.  In
addition, Tenant will be permitted to install their own customized signage
identification in the tenth floor elevator lobby at their own expense and
subject to Landlord’s reasonable approval.

 

K.                                     The
two (2) offices, as shown in green on Exhibit A attached hereto; shall be
reconfigured as a conference room with a full height glass front, as shown on
Exhibit D, attached hereto.

 13
 

 

The above items
shall be made by Landlord at Landlord’s sole cost and expense, all prior to the
commencement date.  Prior to April 1,
2007, Landlord shall provide Tenant with rent-free entry into the Premises for
a period of not less than twenty (20) business days for the purpose of
installing cable, fixture, equipment and furniture.  Landlord shall provide tenant with reasonable
notice of dates such entry will be allowed in order to permit Tenant to
schedule its work.  If the Premises are
not delivered by Landlord in the condition and with the Improvements described
in this Section 8 on or before April 1, 2007 or if Tenant is not so allowed the
number of fixturing days described above prior to the date the Lease would have
otherwise commneced, then Tenant shall be allowed a day for day rent credit for
the number of days on and after April 1, 2007, until such requirements have
been met.

 

9.             ALTERATIONS AND ADDITIONS  Tenant shall not make, or suffer
to be made, any alteration or addition to the Premises, or any part thereof,
without the written consent of Landlord first hand and obtained by Tenant, but
at the cost of Tenant, and any addition to, or alteration of, the Premises,
except moveable furniture and trade fixtures, shall at once become a part of
the Premises and belong to Landlord.  If
Landlord consents to the making of any alteration, addition, or improvement to
or of the Premises by Tenant, the same shall be made by Landlord at Tenant’s
sole cost and expense, except as provided in Paragraph 8 of this Lease.  Any modifications to the building or building
systems required by governmental code or otherwise as a result of Tenant’s
alterations, additions or improvements shall be made at  Tenant’s sole cost and expense, except as
provided in Paragraph 8 of this Lease. 
Tenant shall retain title to all moveable furniture and trade fixtures
placed in the Premises.  All heating,
lighting, electrical, airconditioning, partitioning, drapery, carpeting and
floor installations made by Tenant, together with all property that has become
an integral part of the Premises, shall not be deemed trade fixtures.  Tenant agrees that it will not proceed to
make any alterations or additions, without having obtained consent from
Landlord to do so, and until five (5) days from the receipt of such consent, in
order that Landlord may post appropriate notices to avoid any liability to contractors
or material suppliers for payment for Tenant’s improvements.  Tenant will at all times permit such notices
to be posted and to remain posted until the completion of work.  Tenant shall, if required by Landlord, secure
at Tenant’s own cost and expense, a completion and lien indemnity bond,
satisfactory to Landlord, for such work. 
Tenant further covenants and agrees that any mechanic’s liens filed
against the Premises or against the Complex for work claimed to have been done
for, or materials claimed to have been furnished to Tenant, will be discharged
by Tenant, by bond or otherwise, within ten (10) days after notice to Tenant of
the filing thereof, at the cost and expense of Tenant.  Any exceptions to the foregoing must be made
in writing and executed by both Landlord and Tenant.

10.           DELETED

11.           UTILITIES OF THE BUILDING IN WHICH
THE PREMISES ARE LOCATED  As
Additional Rent and in accordance with paragraph 4D of this Lease, Tenant shall
pay its proportionate share (calculated on a square footage or other equitable

 14
 

 

basis) of the cost of all utility charges such as water, gas,
electricity, sewer service, waste pick-up and any other utilities, materials of
services furnished directly to the building in which the Premises are located,
including, without limitation, any temporary or permanent utility surcharge or
other exactions whether or not hereinafter imposed.  Tenant shall pay the provider directly for
telephone, telex, and other electronic comminications services.

 

Except
as herein expressly set forth, Landlord shall not be liable for and Tenant
shall not be entitled to any abatement or reduction of rent by reason of any
interruption or failure of utility services to the Premises when such
interruption or failure is caused by accident, breakage, repair, strikes,
lockouts or other labor disturbances or labor disputes of any nature, or by any
other cause, similar or dissimilar, beyond the reasonable control of Landlord.

Landlord
shall furnish to the Premises:

	
  A.

  	
   

  	
  reasonable quantities of water, gas and electricity
  suitable for the intended use of the Premises,

  
	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  heat and air conditioning required for the
  comfortable use and occupation of the Premises for such purposes during the
  hours of 8:00 a.m. and 6:00 p.m. Monday through Fridays (holidays excepted),

  
	
   

  	
   

  	
   

  
	
  C.

  	
   

  	
  Trash and sewage disposal,

  
	
   

  	
   

  	
   

  
	
  D.

  	
   

  	
  Life safety systems as required by applicable law 24
  hours per day, 7 days per week, and

  
	
   

  	
   

  	
   

  
	
  E.

  	
   

  	
  TI communication riser access to Premises.

  

 

Tenant agrees that at all times
it will cooperate fully with Landlord and abide by all reasonable regulations
and requirements that Landlord may prescribe for the proper functioning and
protection of the building heating, ventilating and airconditioning systems.  Whenever additiional heat generating
machines, equipment, or any other devices (including exhaust fans) are used in
the Premises by Tenant which affect the temperature or otherwise maintained by
the airconditioning system, Landlord shall have the right to install
supplementary airconditioning units in the Premises and the costs thereof,
including the cost of installation and the cost of operation and maintenance
thereof, shall be paid by Tenant to Landlord upon demand by Landlord.  Tenant will not, without the written consent
of Landlord, use any apparatus or device in the Premises (including, without
limitation), unusual electronic data processing machines or machines using
current in excess of the voltage provided by existing plugs which will
materially increase above building standard the amount of electricity, gas,
water or airconditioning usually furnished or supplies to premises being used
as general office space, or connect with electric current (except through
existing electrical outlets in the Premises), or with gas or water pipes any
apparatus or device for the purposes of using electric current, gas or
water.  If Tenant shall require water,
gas or electric current in excess of that usually furnished or supplied to
premises being used as general office space, Tenant shall first obtain the
written consent of

 15
 

 

Landlord, which consent shall not be unreasonably withheld and Landlord
may cause an electric current, gas, or water meter to be installed in the
Premises in order to measure the amount of electric current, gas or water
consumed for any such excess use.  The
cost of any such meter and of the installation, maintenance and repair thereof,
all charges for such excess water, gas and electric current consumed (as shown
by such meters and at the rates then charged by the furnishing public utility);
and any additional expense incurred by Landlord in keeping account of electric
current, gas, or water so consumed shall be paid by Tenant, and Tenant agrees
to pay Landlord therefor promptly upon demand by Landlord.

 

12.                                 TAXES

A.  As Additional Rent and in accordance with
paragraph 4D of this Lease, Tenant shall pay to Landlord Tenant’s proportionate
share of all Real Property Taxes, which prorata share shall be allocated to the
leased Premises by square footage or other equitable basis, as calculated by
Landlord.  The term “Real Property Taxes”,
as used herein, shall mean (i) all taxes, assessments, levies and other charges
of any kind or nature whatsoever, general and special, foreseen and unforeseen
(including all installments of principal and interest required to pay any
general or special assessments for public improvements and any increases
resulting from reassessments caused by any change in ownership of the Complex)
now or hereafter imposed by any government or quasi-governmental authority or
special district having the direct or indirect power to tax or levy
assessments, which are levied or assessed against, or with respect to the
value, occupancy or use of, all or any portion of the Complex (as now constructed
or as may at any time hereafter  be
constructed, altered, or otherwise changed) or Landlord’s interest therein; any
improvements located within the Complex (regardless of ownership); the
fixtures, equipment and other property of Landlord, real or personal, that are
an integral part of and located in the Complex; or parking areas, public
utilities, or energy within the Complex; (ii) all charges, levies or fees
imposed by reason of environmental regulation or other governmental control of
the Complex; and (iii) all costs and fees (including attorney’s fees)
reasonably incurred by Landlord in contesting any Real Property Tax and in
negotiating with public authorities as to any Real Property Tax.  If at any time during the term of this Lease
the taxation or assessment of the Complex prevailing as of the commencement
date of this Lease shall be altered so that in lieu of or in addition to any
Real Property Tax described above there shall be levied, assessed or imposed
(whether by reason of a change in the method of taxation or assessment,
creation of a new tax or charge, or any other cause) an alternate or additional
tax or charge (i) on the value, use or occupancy of the Complex or Landlord’s
interest therein or (ii) on or measured by the gross receipts, income or
rentals from the Complex, on Landlord’s business of leasing the Complex, or
computed in any manner with respect to the operation of the Complex, then any
such tax or charge, however designated, shall be included within the meaning of
the term “Real Property Taxes” for purposes of this Lease.  If any Real Property Tax is based upon
property or rents unrelated to the Complex, then only that part of such Real
Property Tax that is fairly allocable to the Complex shall be included within
the meaning of the term “Real Property Taxes”. 
Notwithstanding the foregoing, the term “Real Property Taxes” shall not
include (i) estate, inheritance, gift or franchise taxes of Landlord or the
federal or state net income tax imposed on Landlord’s income from all sources, (ii)
assessments, all other

 16
 

 

governmental levies, and any increases in the foregoing occasioned by or
relating to (a) any assets on the Complex owned by a party other than Landlord
(or Landlord’s successor) or Tenant, (b) land and improvements not reserved for
Tenant’s exclusive or nonexclusive use.

 

B.            Taxes on Tenant’s
Property

(1) Tenant shall be liable for
and shall pay ten days before delinquency, taxes levied against any personal
property or trade fixtures placed by Tenant in or about the Premises.  If any such taxes on Tenant’s personal
property or trade fixtures are levied against Landlord or Landlord’s property
or if the assessed value of the Premises is increased by the inclusion therein
of a value placed upon such personal property or trade fixtures of Tenant and
if Landlord, after written notice to Tenant, pays the taxes based on such
increased assessment, which Landlord shall have the right to do so regardless
of the validity thereof, but only under proper protest if requested by Tenant,
Tenant shall upon demand, as the case may be, repay to Landlord the taxes so
levied against Landlord, or the proportion of such taxes resulting from such
increase in the assessment; provided that in any such event Tenant shall have
the right, in the name of Landlord and with Landlord’s full cooperation, to
bring suit in any court of competent jurisdiction to recover the amount of any
such taxes so paid under protest, and any amount so recovered shall belong to
Tenant.

(2) If after the Commencement
Date, Tenant’s Alterations (which shall not include the improvements described
in Paragraph 8) causes the value of improvements in the Premises to exceed the
average value of improvements in the other tenant spaces in the Complex, then
the Real Property Taxes and assessments levied against Landlord or the Complex
by reason of such excess assessed valuation shall be deemed to be taxes levied
against personal property of Tenant and shall be governed by the provisions of
12A(i), above.  If the records of the
County Assessor are available and sufficiently detailed to serve as a basis for
determining whether said Tenant improvements are assessed at a higher valuation
than standard office improvements in other space in the Complex, such records
shall be binding on both the Landlord and the Tenant.  If the records of the County Assessor are not
available or sufficiently detailed to serve as a basis for making said
determination, the actual cost of construction shall be used.

13.           LIABILITY INSURANCE
Tenant, at Tenant’s expense, agrees to keep in force during the term of this
Lease a policy of commercial general liability insurance with combined limits
in the amount of $1,000,000 per occurrence/2,000,000 aggregate for injuries to
or death of persons and/or property damage occurring in, on or about the
Premises or the Complex.  Certificates of
insurance evidencing this coverage shall be furnished to Landlord, in the case
of the liability insurance shall name Landlord as additional insured, and shall
insure any liability of Landlord, contingent or otherwise, as respects acts or
omissions of Tenant, its agents, employees or invitees or otherwise by any
conduct or transactions of any of said persons in or about or concerning the
Premises, including any failure of Tenant to observe or perform any of its
obligations hereunder; shall be issued by an insurance company admitted to
transact business in the State of California; and shall provide that the
insurance effected thereby shall not be canceled, except upon thirty (30) days’
prior written notice to Landlord.

 17
 

 

14.           TENANT’S
PERSONAL PROPERTY INSURANCE AND WORKER’S COMPENSATION INSURANCE  Tenant shall maintain a policy or policies of
fire and property damage insurance on a “special form” basis with a sprinkler
leakage endorsement insuring the personal property, inventory, trade fixtures
and leasehold improvements within the leased Premises for the full replacement
value thereof.  The proceeds from any of
such policies shall be Tenant’s sole property, and in Tenant’s discretion, used
for the repair or replacement of such items so insured.

 

                Tenant shall also
maintain a policy or policies of worker’s compensation insurance and any other
employee benefit insurance sufficient to comply with all the laws.

 

15.           PROPERTY INSURANCE Landlord
shall purchase and keep in force and, as Additional Rent and in accordance with
Paragraph 4D of this Lease, Tenant shall pay to Landlord Tenant’s proportionate
share (calculated on a square footage or other equitable basis) of the cost of
policy or policies of insurance covering loss or damage to the Premises and
Complex in the amount of the full replacement value thereof, providing
protection against those perils included within the classification of “special
form” insurance and flood and/or earthquake insurance, if available, plus a
policy of rental income insurance in the amount of one hundred (100%) percent
of twelve (12) months Basic Rent, plus sums paid as Additional Rent.  If such insurance costs are increased due to
Tenant’s use of Premises or the Complex for other than office uses, Tenant
agrees to pay to Landlord the full cost of such increase.  Subject only to the terms of this Lease,
Tenant shall have no interest in nor any right to the proceeds of any insurance
procured by Landlord for the Complex.

 

                Notwithstanding
anything to the contrary in this Lease, Landlord and Tenant do each hereby
respectively release the other, to the extent of insurance coverage of the
releasing party and to the extent the releasing party is required to carry
insurance under this Lease, from any liability for loss or damage caused by
fire or any of the extended coverage casualties included (or to be included) in
the releasing party’s insurance policies, irrespective of the cause of such
fire or casualty.

 

16.           INDEMNIFICATION  Landlord shall not be liable to
Tenant and Tenant hereby waives all claims against Landlord for any injury to
or death of any person or damage to or destruction of property in or about the
Premises or the Complex by or from any cause whatsoever, including, without
limitation, gas, fire, oil, electricity or leakage of any character from the
roof, walls, basement or other portion of the Premises or the Complex but
excluding, however, the breach of this Lease or violation of law by Landlord
and/or the negligence of Landlord, its agents, servants, employees, invitees,
or contractors of which negligence Landlord has knowledge and reasonable time
to correct.  Except as to injury to
persons or damage to property the principal cause of which is the breach of
this Lease or violation of law by Landlord, or the willful misconduct or
negligence of Landlord,  Tenant shall
hold Landlord harmless from and defend Landlord against any and all expenses,
including reasonable attorney’s fees, in connection therewith, to the extent
arising out of any injury to or death of any person or damage to or destruction
of property occurring in, on or about the Premises, or any part thereof,  as a consequence of the negligence or willful
misconduct of Tenant or its agents, employees, or contractors.

 18
 

 

17.           COMPLIANCE  Tenant, as its sole cost and expense, shall
promptly comply with all laws, statutes, ordinances and governmental rules,
regulations or requirements now or hereafter in effect; with the requirements
of any board of fire underwriters or other similar body now or hereafter
constituted; and with any direction or occupancy certificate issued pursuant to
law by any public officer governing the conduct of its activities in the
Premises; provided, however, that no such failure shall be deemed a breach of
the provisions if Tenant, immediately upon notification, commences to remedy or
rectify said failure.  The judgement of
any court of competent jurisdiction or the admission of Tenant in any action
against Tenant, whether Landlord be a party thereto or not, that Tenant has
violated any such law, statute, ordinance or governmental rule, regulation,
requirement, direction or provision, shall be conclusive of that fact as
between Landlord and Tenant.  This paragraph
shall not be interpreted as requiring Tenant to make structural changes,
repairs to the Premises, or improvements, except to the extent such changes or
improvements are required as a result of Tenant’s use of the Premises for other
than general office purposes.  Tenant
shall, at its sole cost and expense, comply with any and all requirements
pertaining to its use of the Premises for other than general office purposes,
of any insurance organization or company, necessary for the maintenance of
reasonable fire and public liability insurance covering the Premises.

 

18.           LIENS   Tenant shall keep the Premises and the
Complex free from any liens arising out of any work performed, materials
furnished or obligation incurred by Tenant. 
In the event that Tenant shall not, within ten (10) days following
notice to Tenant of the imposition of such lien, cause the same to be released
of record, Landlord shall have, in addition to all other remedies provided
herein and by law, the right, but no obligation, to cause the same to be
released by such means as it shall deem proper, including payment of the claim
giving rise to such lien.  All sums paid
by Landlord for such purpose, and all expenses incurred by it in connection
therewith, shall be payable to Landlord by Tenant on demand with interest at
the prime rate of interest as quoted by the Bank of America.

19.           ASSIGNMENT AND SUBLETTING   Tenant shall not assign, transfer or
hypothecate the leasehold estate under this Lease, or any interest therein, and
shall not sublet the Premises, or any part thereof, or any right or privilege
appurtenant thereto, or suffer any other person or entity to occupy or use the
Premises, or any portion thereof, without, in each case, the prior written
consent of Landlord which consent will not be unreasonably withheld.  Tenant shall, by 30 days’ written notice,
advise Landlord of its intent to sublet the Premises or any portion thereof for
any part of the term hereof.  As a
condition for granting its consent to any subletting, Landlord may require that
Tenant agrees to pay to Landlord, as additional rent, all rents or other
considerations received by Tenant from its subtenants in excess of the rent
payable by Tenant to Landlord hereunder and the costs incurred by Tenant to
acquire, document, and perform under the transfer, including without
limitation, brokerage commission, fit up cost for the transferee, attorneys’
fees, and the cost incurred by Tenant to provide any other services or
equipment to the transferee.  Tenant
shall, by 30 days’ written notice, advise Landlord of its intent to sublet
substantially all of the Premises for substantially all of the remaining term
hereof which notice may be given prior to Tenant’s identification of a
particular transferee.  If Tenant intends
to assign the lease or sublet substantially all of the Premises for

 19
 

 

substantially all of the remaining term, then upon receipt of said
notice, Landlord may, in its sole discretion, elect to terminate this Lease as
to the portion of the Premises described in Tenant’s notice on the date
specified in Tenant’s notice.   If Tenant
intends to assign the Lease or sublet substantially all of the Premises and
Landlord elects to terminate this Lease, this Lease shall be terminated on the
date specified in Tenant’s notice.  In
the event Tenant is allowed to assign, transfer or sublet the whole or any part
of the Premises, with the prior written consent of Landlord, no assignee,
transferee or subtenant shall assign or transfer this Lease, either in whole or
in part, or sublet the whole or any part of the premises, without also having
obtained the prior written consent of Landlord. 
A consent of Landlord to one assignment, transfer, hypothecation,
subletting, occupation or use by any other person shall not release Tenant from
any of Tenant’s obligations hereunder to be deemed to be a consent to any
subsequent similar or dissimilar assignment, transfer, hypothecation,
subletting, occupation or use by any other person.  Any such assignment, transfer, hypothecation,
subletting, occupation or use without such consent shall be void and shall
constitute a breach of this Lease by Tenant and shall, at the option of
Landlord exercised by written notice to Tenant, terminate this Lease.  The leasehold estate under this Lease shall
not, nor. shall any interest therein, be assignable for any purpose by
operation of law without the written consent of Landlord.  As a condition to its consent, Landlord may
require Tenant to pay all its reasonable expenses in connection with the
assignment up to a maximum of $500, and Landlord may require Tenant’s assignee
or transferee (or other assignees or transferees) to assume in writing all of
the obligations under this Lease and for Tenant to remain liable to landlord
under the Lease.  Notwithstanding
anything to the contrary in the Lease (A) Tenant may, without Landlord’s prior
written consent and without any participation by Landlord in assignment and
subletting proceeds, sublet the Premises or assign the Lease to:  (i) a subsidiary, affiliate, division or
corporation controlling, controlled by or under common control with Tenant;
(ii) a successor corporation related to Tenant by merger, consolidation,
non-bankruptcy reorganization, or government action; or (iii) a purchaser of
substantially all of Tenant’s assets located in the Premises, (B) sale or
issuance of Tenant’s capital stock through any public exchange, national market
or over-the counter or in consideration of contributions of capital to the
Tenant, shall not be deemed an assignment, subletting, or any other transfer of
the Lease or the Premises, and (C) Landlord’s consent to any proposed
assignment or subletting shall not be unreasonably withheld, conditioned, or
delayed and Landlord shall respond within thirty (30) days.

 

20.           SUBORDINATION AND MORTGAGES   In the event Landlord’s title or leasehold
interest is now or hereafter encumbered by a deed of trust, upon the interest
of Landlord in the land and buildings in which the demised Premises are
located, to secure a loan from a lender (hereinafter referred to as “Lender”)
to Landlord, Tenant shall, at the request of Landlord or Lender, execute in
writing an agreement subordinating its rights under this Lease to the lien of
such deed of trust, or, if so requested, agreeing that the lien of Lender’s
deed of trust shall be or remain subject and subordinate to the rights of
Tenant under this Lease.  Tenant hereby
irrevocably appoints Landlord the attorney in fact of Tenant to execute,
deliver and record any such instrument or instruments for and in the name and
on behalf of Tenant.  Notwithstanding any
such subordination, Tenant’s possession under this Lease shall not be disturbed
if Tenant is not in default and so long as Tenant shall pay all rent and
observe and perform all of the provisions set forth in this

 20
 

 

Lease.  Tenant agrees to send to
any mortgagees and/or deed of trust holders, by registered mail, a copy of any
notice of default served by Tenant upon the Landlord, provided that prior to
such notice, Tenant has been notified, in writing (by way of notice of
assignment of rents or otherwise) of the addresses of such mortgages and/or
deed of trust holders.  Tenant further
agrees that if Landlord shall have failed to cure such default within the time
provided for in this Lease, any such mortgagees and/or deed of trust holders
shall have an additional thirty (30) days within which to cure such default, or
if such default is not reasonably susceptible of cure within that time, then
such additional time as may be reasonably necessary if within such (30) days,
any mortgagee and/or deed of trust holder has commenced and is diligently
pursuing the remedies necessary to cure such default, (including but not
limited to commencement of foreclosure proceedings), in which event this Lease
shall not be terminated when such remedies are being diligently pursued.

 

21.           ENTRY BY LANDLORD  
Landlord reserves, and shall at all reasonable times have, the right to
enter the Premises to inspect them; to perform any services to be provided by
Landlord hereunder; to submit the Premises to prospective purchasers, mortgagers
or tenants; to post notices of nonresponsibility; and to so long as the change
does not interfere with the conduct of Tenant’s business, increase Tenant’s
costs, or materially reduce Tenant’s rights, alter, improve or repair the
Premises and any portion of the Complex, all without abatement of rent; and may
erect scaffolding and other necessary structures in or through the Premises
where reasonably required by the character of the work to be performed;
provided, however, that the business of Tenant shall be interfered with to the
least extent that is reasonably practical. 
For each of the foregoing purposes, Landlord shall at all times have and
retain a key with which to unlock all of the doors in an emergency in order to
obtain entry to the Premises, and any entry to the Premises obtained by
Landlord by any of said means, shall not under any circumstances be construed
or deemed to be a forcible or unlawful entry into or a detainer of the Premises
or an eviction, actual or constructive, of Tenant from the Premises or any
portion thereof.  Landlord shall also
have the right at any time to change the arrangement or location of entrances
or passageways, doors and doorways, and corridors, elevators, stairs, toilets or
other public parts of the Complex, provided such change does not unreasonably
interfere with the conduct of Tenant’s business and to change the name, number
or designation by which the Complex is commonly known, and none of the
foregoing shall be deemed and actual or constructive eviction of Tenant, or
shall entitle Tenant to any reduction of rent hereunder.

22.           BANKRUPTCY AND DEFAULT   The commencement by Tenant of a bankruptcy
action or liquidation action or reorganization action or insolvency action or
an assignment of or by Tenant for the benefit of creditors, or any similar
action undertaken by Tenant, shall, at Landlord’s option, constitute a breach
of this Lease by Tenant.  If the trustee
or receiver appointed to serve during a bankruptcy, liquidation,
reorganization, insolvency or similar action elects to reject Tenant’s
unexpired Lease, the trustee or receiver shall notify Landlord in writing of
its election within thirty (30) days after an order for relief in a liquidation
action or within thirty (30) days after the commencement of any action.

  
Within thirty (30) days after court approval of the assumption of this
Lease, the trustee or receiver shall cure (or provide adequate assurance to the
reasonable satisfaction of

 21
 

 

Landlord that the trustee or receiver shall cure) any and all previous
defaults under the unexpired Lease and shall compensate Landlord for all actual
pecuniary loss and shall provide adequate assurance of future performance under
said Lease to the reasonable satisfaction of Landlord.  Adequate assurance of future performance, as
used herein, includes, but shall not be limited to: (i) assurance of source and
payment of rent, and other consideration due under this Lease; (ii) assurance
that the assumption or assignment of this Lease will not breach substantially
any provision, such as radius, location, use, or exclusivity provision, in any
agreement relating to the above described Premises.

 

Nothing
contained in this section shall affect the existing right of Landlord to refuse
to accept an assignment upon commencement of or in connection with a
bankruptcy, liquidation, reorganization or insolvency action or an assignment
of Tenant for the benefit of creditors or other similar act.  Nothing contained in this Lease shall be
construed as giving or granting or creating an equity in the demised Premises
to Tenant.  In no event shall the
leasehold estate under this Lease, or any interest therein, be assigned by
voluntary or involuntary bankruptcy proceeding without the prior written consent
of Landlord.  In no event shall this Lease
or any rights or privileges hereunder be an asset of Tenant under any
bankruptcy, insolvency or reorganization proceedings.

The
failure to perform or honor any covenant, condition or representation made
under this Lease shall constitute a default hereunder by Tenant upon expiration
of the appropriate grace period hereinafter provided.  Tenant shall have a period of five (5) days
from the date of written notice from Landlord within which to cure any default
in the payment of rental or adjustments thereto.  Tenant shall have a period of ten (10) days
from the date of written notice from Landlord within which to cure any other
default under this Lease; provided, however, that if the default cannot
reasonably be cured within such 10 day period, Tenant shall have such
reasonable time is may reasonably be required to cure such default so long as
Tenant commences to cure the default within such 10 day period.  Upon an uncured default of this Lease by
Tenant, Landlord shall have the following rights and remedies in addition to
any other rights or remedies available to Landlord at law or in equity:

  
             (a)   The rights and remedies provided for by
California Civil Code Section 1951.2, including but not limited to, recovery of
the worth at the time of award of the amount by which the unpaid rent for the
balance of the term after the time of award exceeds the amount of rental loss
for the same period that Tenant proves could be reasonably avoided, as computed
pursuant to subsection (b) of said Section 1951.2.  Any proof by Tenant under subparagraphs (2)
and (3) of Section 1951.2 of the California Civil Code of the amount of rental
loss that could be reasonably avoided shall be made in the following
manner:  Landlord and Tenant shall each
select a licensed real estate broker in the business of renting property of the
same type and use as the Premises and in the same geographic vicinity.  Such two real estate brokers shall select a
third licensed real estate broker, and the three licensed real estate brokers
so selected shall determine the amount of the rental loss that could be
reasonably avoided from the balance of the term of this Lease after the time of
award.  The decision of the majority of
said licensed real estate brokers shall be final and binding upon the parties
hereto.

(b)   The rights and remedies provided by
California Civil Code which allows Landlord to continue the Lease in effect and
to enforce all of its rights and remedies under this Lease, including the right
to recover rent as it becomes due, for so long as Landlord does not terminate
Tenant’s right to possession; acts of maintenance or preservation, efforts

 22
 

 

to relet the Premises, or the appointment of a receiver upon Landlord’s
initiative to protect its interest under this Lease shall not constitute a
termination of Tenant’s right to possession.

 

(c)   The right to terminate this Lease by giving
notice to Tenant in accordance with applicable law.

(d)   The right and power, as attorney-in-fact for
Tenant, to enter the Premises and remove therefrom all persons and property, to
store such property in a public warehouse or elsewhere at the cost of and for
the account of Tenant and to sell such property and apply such proceeds
therefrom pursuant to applicable California law.

23.           ABANDONMENT  
If Tenant shall abandon, vacate or surrender said Premises, or be
dispossessed by the process of law, or otherwise, any personal property
belonging to Tenant and left on the Premises shall be deemed to be abandoned,
at the option of Landlord, except such property as may be mortgaged to
Landlord.

24.           DESTRUCTION   In the event the Premises are destroyed in
whole or in part or the building in which the Premises are situated is damaged
or destroyed to the extent of not less than 33 1/3% of the replacement cost
thereof from any cause, Landlord may, at its option:

(a)   Rebuild or restore the Premises to their
condition prior to the damage or destruction, or

(b)  Terminate this Lease.  If Landlord terminates this Lease and
thereafter restores the damage, tenant shall have the right to reinstate the
Lease on its then existing terms for a minimum of a one year term.

If
Landlord does not give Tenant notice in writing within thirty (30) days from
the destruction of the Premises of its election to either rebuild and restore
them, or to terminate this Lease, Landlord shall be deemed to have elected to
rebuild or restore them, in which event Landlord agrees, at its expense,
promptly to rebuild or restore the Premises to their condition prior to the
damage or destruction.  Tenant shall be
entitled to a reduction in rent from the date of the casualty and while such
repair is being made in the proportion that the area of the Premises rendered
not reasonably suitable for the conduct of Tenant’s business by such damage
bears to the total area of the Premises. 
If the expected restoration time after the date of the casualty exceed
180 days or if Landlord does not complete the rebuilding or restoration within
one hundred eighty (180) days following the date of destruction (such period of
time to be extended for delays caused by the fault or neglect of Tenant or for
not more than 30 days because of Acts of God, acts of public agencies, labor
disputes, strikes, fires, freight embargoes, rainy or stormy weather, inability
to obtain materials, supplies or fuels, acts of contractors or subcontractors,
or delay of the contractors or subcontractors due to such causes or other
contingencies beyond the control of Landlord), then Tenant shall have the right
to terminate this Lease by giving fifteen (15) days prior written notice to
Landlord.  Notwithstanding anything
herein to the contrary, Landlord’s obligation to rebuild or restore shall be
limited to the building and interior improvements constructed by Landlord as
they existed as of the commencement date of the Lease and shall not include
restoration of Tenant’s trade fixtures, equipment, merchandise or any
improvements, alterations or additions made by Tenant to the Premises.

 

 23

 

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

In
the event the destruction of the Premises is caused by Tenant, Tenant shall pay
the deductible portion of Landlord’s insurance proceeds up to a maximum of
$10,000.

25.           EMINENT DOMAIN   If all or any part of the Premises shall be
taken by any public or quasi-public authority under the power of eminent domain
or conveyance in lieu thereof, this Lease shall terminate as to any portion of
the Premises so taken or conveyed on the date when title vests in the
condemnor, and Landlord shall be entitled to any and all payment, income, rent,
award or any interest therein whatsoever which may be paid or made in
connection with such taking or conveyance, and Tenant shall have no claim
against Landlord or otherwise for the value of any unexpired term of this Lease.  Notwithstanding the foregoing paragraph, any
compensation specifically awarded Tenant for loss of business, Tenant’s
personal property, moving cost or loss of goodwill, shall be and remain the
property of Tenant.

If
(i) any action or proceeding is commenced for such taking of the Premises or
any part thereof, or if Landlord is advised in writing by any entity or body
having the right or power of condemnation of its intention to condemn the
Premises or any portion thereof, or (ii)any of the foregoing events occur with
respect to the taking of any space in the Complex not leased hereby, or any
such spaces so taken or conveyed in lieu of such taking and Landlord shall
decide to permanently discontinue the use and operation of the Complex, or
decide to demolish, alter or rebuild the Complex, then in any of such events
Landlord shall have the right to terminate this Lease by giving Tenant written
notice thereof within sixty (60) days of the date of receipt of said written
advice, or commencement of said action or proceeding, or taking conveyance,
which termination shall take place, at the election of Tenant on the last day
of the calendar month next following the month in which such notice is given or
the date on which title to the Premises shall vest in the condemnor.

In
the event of such a partial taking or conveyance of the Premises, if the
portion of the Premises or any Tenant parking rights taken or conveyed is so
substantial that the Tenant can no longer reasonably conduct its business,
Tenant shall have the privilege of terminating this Lease within sixty (60)
days from the date of such taking or conveyance, upon written notice to
Landlord of its intention so to do, and upon giving of such notice this Lease
shall terminate on the last day of the calendar month next following the month
in which such notice is given, upon payment by Tenant of the rent from the date
of such taking or conveyance to the date of termination.

If a
portion of the Premises be taken by condemnation or conveyance in lieu thereof
and neither Landlord nor Tenant shall terminate this Lease as provided herein,
this Lease shall continue in full force and effect as to the part of the
Premises not so taken or conveyed, and the rent herein shall be apportioned as
of the date of such taking or conveyance so that thereafter the rent to be paid
by Tenant shall be in the ratio that the area of the portion of the Premises
not so taken or conveyed bears to the total area of the Premises prior to such
taking.

 24
 

 

26.           SALE
OR CONVEYANCE BY LANDLORD   In
the event of a sale or conveyance of the Complex or any interest therein, by
any owner of the reversion then constituting Landlord, the transferor shall
thereby be released from any further liability upon any of the terms, covenants
or conditions (express or implied) herein contained in favor of Tenant which
are assumed by the transferee, and in such event, insofar as such transfer is
concerned, Tenant agrees to look solely to the responsibility of the successor
in interest of such transferor in and to the Complex and this Lease.  This Lease shall not be affected by any such
sale or conveyance, and Tenant agrees to attorn to the successor in interest of
such transferor.

 

27.           ATTORNMENT
TO LENDER OR THIRD PARTY   In
the event the interest of Landlord in the land and buildings in which the
leased Premises are located (whether such interest of Landlord is a fee title
interest or a leasehold interest) is encumbered by deed of trust, and such
interest is acquired by the lender or any third party through judicial foreclosure
or by exercise of a power of sale at private trustee’s foreclosure sale, Tenant
hereby agrees to attorn to the purchaser at any such foreclosure sale and to
recognize such purchaser as the Landlord under this Lease.  In the event the lien of the deed of trust
securing the loan from a Lender to Landlord is prior and paramount to the
lease, this Lease shall nonetheless continue in full force and effect for the
remainder of the unexpired term hereof, at the same rental herein reserved and
upon all the other terms, conditions and covenants herein contained.

 

28.           HOLDING
OVER   Any holding over by
Tenant after expiration or other termination of the term of this Lease with the
written consent of Landlord delivered to Tenant shall not constitute a renewal
or extension of the Lease or give Tenant any rights in or to the leased
Premises except as expressly provided in this Lease.  Any holding over after the expiration or
other termination of the term of this lease, with the consent of Landlord,
shall be construed to be a tenancy from month to month, on the same terms and
conditions herein specified insofar as applicable except that the monthly Basic
Rent shall be increased to an amount equal to one hundred fifty (150%) percent
of the monthly Basic Rent required during the last month of the Lease term.

 

29.           CERTIFICATE
OF ESTOPPEL   Tenant shall at
any time upon not less than ten (10) days’ prior written notice from Landlord
execute, acknowledge and deliver to Landlord a statement in writing (i)
certifying that this Lease is unmodified and in full force and effect (or, if
modified, stating the nature of such modification and certifying that this
Lease, as so modified, is in full force and effect) and the date to which the
rent and other charges are paid in advance, if any, and (ii) acknowledging that
there are not, to Tenant’s knowledge, any uncured defaults on the part of
Landlord hereunder, or specifying such defaults, if any, are claimed.  Any such statement may be conclusively relied
upon by any prospective purchaser or encumbrancer of the Premises.  Tenant’s failure to deliver such statement
within such time shall be conclusive upon Tenant that this Lease is in full
force and effect, without modifications except as may be represented by
Landlord; that there are no uncured defaults in Landlord’s performance, and
that no more that one month’s rent has been paid in advance.

 

 25
 

 

30.           CONSTRUCTION
CHANGES   It is understood
that the description of the Premises and the location of the ductwork, plumbing
and other facilities therein are subject to such minor changes as Landlord or
Landlord’s architect determines to be desirable in the course of construction
of the Premises, and no such changes, or any changes in plans for any other
portions of the Complex shall affect this Lease or entitle Tenant to any
reduction of rent hereunder or result in any liability of Landlord to Tenant so
long as such change does not interfere with the conduct of Tenant’s business or
adversely effect the Tenant’s rights and obligations.  Landlord does not guarantee the accuracy of
any drawings supplied to Tenant and verification of the accuracy of such
drawings rests with Tenant.

 

31.           RIGHT
OF LANDLORD TO PERFORM   All
terms, covenants and conditions of this Lease to be performed or observed by
Tenant shall be performed or observed by Tenant at Tenant’s sole cost and
expense and without any reduction of rent. 
If Tenant shall fail to pay any sum of money, or other rent, required to
be paid by it hereunder or shall fail to perform any other term or covenant
hereunder on its part to be performed, and such failure shall continue without
the undertaking of a cure by Tenant of 10 
(10) days after written notice thereof by Landlord, Landlord, without
waiving or releasing Tenant from any obligation of Tenant hereunder, may, but
shall not be obligated to, make any such payment or perform any such other term
or covenant on Tenant’s part to be performed. 
All sums so paid by Landlord and all necessary costs of such performance
by Landlord together with interest thereon at the rate of the prime rate of
interest per annum as quoted by the Bank of America from the date of such
payment of performance by Landlord, shall be paid (and Tenant covenants to make
such payment) to Landlord or demand by Landlord, and Landlord shall have (in
addition to any other right or remedy of Landlord) the same rights and remedies
in the event of non payment by Tenant as in the case of failure by Tenant in
the payment of rent hereunder.

 

32.           ATTORNEYS
FEES

 

                (A)          In the event that Landlord or Tenant
should bring suit for the possession of the Premises, for the recovery of any
sum due under this Lease, or because of the breach of any provision of this
Lease, or for any other relief hereunder, then all costs and expenses, including
reasonable attorney’s fees, incurred by the prevailing party therein shall be
paid by the other party, which obligation on the part of the other party shall
be deemed to have accrued on the date of the commencement of such action and
shall be enforceable whether or not the action is prosecuted to judgement.

(B)           Should Landlord, through no fault of
Landlord, the other occupants of the Complex or their respective agents,
employees, contractors or invitees be named as a defendant in any suit brought
against Tenant in connection with or arising out of Tenant’s occupancy
hereunder, Tenant shall pay to Landlord its costs and expenses reasonably
incurred in such suit, including a reasonable attorney’s fee.

33.           WAIVER   The waiver by either party of the other party’s
failure to perform or observe any term, covenant or condition herein contained
to be performed or observed by such waiving party shall not be deemed to be a
waiver of such term, covenant or condition or of any subsequent failure of the
party failing to perform or observe the same or any other such term, covenant
or condition therein contained, and no custom or practice which may

 26
 

 

develop between the parties hereto during the term hereof shall be
deemed a waiver of, or in any way affect, the right of either party to insist
upon performance and observance by the other party in strict accordance with
the terms hereof.

 

34.           NOTICES   All notices, demands, requests, advices or
designations which may be or are required to be given by either party to the
other hereunder shall be in writing.  All
notices, demands, requests, advices or designations by Landlord to Tenant shall
be sufficiently given, made or delivered if personally served on Tenant  at the notice address set forth below Tenant’s
signature or at such other address as Tenant shall hereafter notify Landlord in
writing in accordance with this Section or if sent by United States certified
or registered mail, postage prepaid, addressed to Tenant.  All notices, demands, requests, advices or
designations by Tenant to Landlord shall be sent by United States certified or
registered mail, postage prepaid, addressed to Landlord at its offices at 1875
South Grant Street, Suite 100, San Mateo, CA 94402.

 

                Each notice,
request, demand advice or designation referred to in this paragraph shall be
deemed received on the date of the personal service or mailing thereof in the
manner herein provided, as the case may be.

 

35.           EXAMINATION
OF LEASE   Submission of this
instrument for examination or signature by Tenant does not constitute a
reservation of or option for a lease, and this instrument is not effective as a
lease or otherwise until its execution and delivery by both Landlord and
Tenant.  Landlord and Tenant mutually
intend that neither shall have any binding contractual obligations to the other
with respect to the matters referred to herein unless and until this instrument
has been fully executed by both parties.

 

36.           DEFAULT
BY LANDLORD  Landlord shall
not be in default unless Landlord fails to perform obligations required of
Landlord within a reasonable time, but in no event earlier than thirty (30)
days after written notice by Tenant to Landlord and to the holder of any first
mortgage or deed of trust covering the Premises whose name and address shall
have heretofore been furnished to Tenant in writing, specifying wherein
Landlord has failed to perform such obligations; provided, however, that if the
nature of Landlord’s obligations is such than more than thirty (30) days are
required for performance, then Landlord shall not be in default if Landlord
commences performance within such thirty (30) day period and thereafter
diligently prosecutes the same to completion. 
Notwithstanding the foregoing if Landlord’s failure to perform
any of its obligations under the Lease results in a condition which is causing
or threatens to cause immediate damage to Tenant’s personnel or property, then
Landlord shall repair such condition as soon as possible after receiving notice
from Tenant.

 

37.           CORPORATE
AUTHORITY

 

If Tenant is a corporation (or a
partnership) each individual executing this Lease on behalf of said corporation
(or partnership) represents and warrants that he is duly authorized to execute
and deliver this Lease on behalf of said corporation (or partnership) in accordance
with the by-laws of said corporation (or partnership in accordance with the

 27
 

 

partnership agreement) and that this Lease is binding upon said
corporation (or partnership) in accordance with its terms.

 

38.           DELETED

 

39.           LIMITATION OF LIABILITY  In consideration of the benefits
accruing hereunder, Tenant and all successors and assigns covenant and agree
that, in the event of any actual or alleged failure, breach or default
hereunder by Landlord:

(i)            the
sole and exclusive remedy shall be against Landlord and Landlord’s assets;

(ii)           no
partner of Landlord shall be sued or named as a party in any suit or action
(except as may be necessary to secure jurisdiction of the partnership)

(iii)          no
service of process shall be made against any partner of Landlord (except as may
be necessary to secure jurisdiction of the partnership)

(iv)          no
partner of Landlord shall be required to answer or otherwise plead to any
service of process;

(v)           no
judgement shall be taken against any partner of Landlord;

(vi)          any
judgement taken against any partner of Landlord may be vacated and set aside at
any time without hearing;

(vii)         no
writ of execution will ever be levied against the assets of any partner of
Landlord;

(viii)        these
covenants and agreements are enforceable both by Landlord and also by any
partner of Landlord.

(ix)           The
term, “Landlord”, as used in this section, shall mean only the owner or owners
from time to time of the fee title or the tenant’s interest under a ground
lease of the land described in Exhibit “B”, and in the event of any transfer of
such title or interest, Landlord herein named (and in case of any subsequent
transfers the then grantor) shall be relieved from and after the date of such
transfer of all liability as respects Landlord’s obligations thereafter to be
performed which are assumed by the transferee, provided that any funds in the
hands of Landlord or the then grantor at the time of such transfer, in which
Tenant has an interest, shall be delivered to the grantee.  Similarly, the obligations contained in this
Lease to be performed by Landlord shall be binding on Landlord’s successors and
assigns only during their respective period of ownership.  Tenant agrees that each of the foregoing
covenants and agreements shall be applicable to any covenant or agreement
either expressly contained in this Lease or imposed by statute or at common
law.

40.           BROKERS  Tenant warrants that it had dealing with only
of the following real estate brokers or agents in connection with the
negotiation of this Lease    CB
Richard Ellis and Cornish and Carey Commercial     and that it knows of no other real
estate broker or agent who is entitled to a commission in connection with this
Lease.  Landlord will pay all
compensation due to the Brokers with respect to this Lease.

 28
 

 

41.           SIGNS   Except as expressly provided in
this Lease, no sign, placard, picture, advertisement, name or notice shall be
inscribed, displayed, printed or affixed on or to any part of the outside of
the Premises or any exterior windows of the Premises without the written
consent of Landlord first had and obtained and Landlord shall have the right to
remove any such sign, placard, picture, advertisement, name or notice without
notice to and at the expense of Tenant. 
If Tenant is allowed to print or affix or in any way place a sign in,
on, or about the Premises, then upon expiration or other sooner termination of
this Lease, Tenant at Tenant’s sole cost and expense shall both remove such
sign and repair all damage in such manner as to restore all aspects of the
appearance of the Premises to the condition prior to the placement of said
sign.

 

                Except as expressly
provided in this Lease, all approved signs or lettering on outside doors shall
be printed, painted, affixed or inscribed at the expense of Tenant by a person approved
of by Landlord.  Tenant shall not place
anything or allow anything to be placed near the glass of any window, door
partition or wall which may appear unsightly from outside the Premises.

 

42.           FINANCIAL STATEMENTS   In the event Tenant tenders to Landlord any
information on the financial stability, credit worthiness or ability of the
Tenant to pay the rent due and owing under the Lease, then Landlord shall be
entitled to rely upon the information provided in determining whether or not to
enter into this Lease Agreement with Tenant and Tenant hereby represents and
warrants to Landlord the following: (i) That all documents provided by Tenant
to Landlord are true and correct copies of the original; and (ii) Tenant has
not withheld any information from Landlord which is material to Tenant’s credit
worthiness, financial condition or ability to pay the  rent; and (iii) all information supplied by
Tenant to Landlord is true, correct and accurate; and (iv) no part of the
information supplied by Tenant to Landlord contains misleading or fraudulent
statements.

                A default under
this paragraph shall be a non-curable default on behalf of Tenant and Landlord
shall be entitled to pursue any right or remedy available to Landlord under the
terms of this Lease or available to Landlord under the laws of the State of
California.

 

43.           HAZARDOUS MATERIALS

                A.            As used herein, the term “Hazardous
Material” shall mean any substance or material which has been determined by any
state, federal or local governmental authority to be capable of posing a risk
of injury to health, safety or property including all of those materials and
substances designated or defined as “hazardous” or “toxic” by (i) the
Environmental Protection Agency, the California Water Quality Control Board,
the Department of Labor, the California Department of Industrial Relations, the
Department of Transportation, the Department of Agriculture, the Consumer
Product Safety Commission, the Department of Health and Human Services, the
Food and Drug Agency or any other governmental agency now or hereafter
authorized to regulate materials and substances in the environment, or by (ii)
the Comprehensive Environmental Response, Compensation and Liability Act of
1980, 42 U.S.C. 9601 et seq., as amended; the Hazardous Materials
Transportation Act, 49 U.S.C. 1801, et seq., as amended; the Resource
Conservation and Recovery Act, 42 U.S.C. 6901, et seq., as amended; the
Hazardous Waste Control Law,

 29
 

 

California Health & Safety Code 25100 et seq., as amended; Sections
66680 through 66685 of Title 22 of the California Administration Code, Division
4, Chapter 30, as amended; and in the regulations adopted and publications
promulgated pursuant to said laws.

 

B.            Tenant shall not cause any Hazardous
Material to be improperly or illegally used, stored, discharged, released or
disposed of in, from, under or about the Premises or the Complex, or any other
land or improvements in the vicinity of the Premises or the Complex during the
Lease Term (“Tenant’s Hazardous Materials”).  
Without limiting the generality of the foregoing, Tenant, at its sole
cost, shall comply with all laws relating to such Hazardous Materials.  If the presence of any Tenant’s Hazardous
Materials on the Premises or the Complex results in contamination of the
Premises or the Complex or any soil or about the Premises or the Complex,
Tenant, as its expense shall promptly take all actions necessary to return the
Premises or the Complex to the condition existing prior to the appearance of
such Hazardous Material.  The termination
of this Lease shall not terminate or reduce the liability or obligation of
Tenant under this Section, or as may be required by law, to clean up, monitor
or remove any Hazardous Materials from the Premises or the Complex.

Tenant
shall defend, hold harmless and indemnify Landlord and its agents and employees
with respect to all claims, damages and liabilities to the extent arising out
of or in connection with any Tenant’s Hazardous Material used, stored,
discharged, released or disposed of in, from, under or about the Premises or
the Complex, including, without limitation, any cost of monitoring or removal,
any reduction in the fair market value or fair rental value of the Premises or
the Complex and any loss, claim or demand by any third person or entirely
relating to bodily injury or damage to real or personal property.

Tenant
shall not suffer any lien to be recorded against the premises or the Complex as
a consequence of such Tenant’s Hazardous Material, including any so called
state, federal or local “super fund” lien related to the “clean up” of a
Hazardous Material in or about the Premises, where said Hazardous Material is
or was attributable to the activities of Tenant.

C.            In the event Hazardous Materials are
discovered in or about the Premises or the Complex, and Landlord has
substantial reason to believe that they are Tenant’s Hazardous Materials, then
Landlord shall have the right to appoint a consultant, at Tenant’s expense, to
conduct an investigation to determine whether Hazardous Materials are located
in or about the Premises or the Complex and to determine the corrective
measures, if any, required to remove such Hazardous Materials.  Tenant, at its expense, shall comply with all
recommendations of the consultant, as required by law with respect to Tenant’s
Hazardous Materials.  To the extent it is
determined that Tenant was not responsible for the presence of the Hazardous
Materials, then Landlord shall reimburse Tenant for any costs incurred by
Landlord and paid by Tenant under the terms of this paragraph 45.C.

Tenant
shall immediately notify Landlord of any inquiry, test, investigation or
enforcement proceeding by or against Tenant or the Premises or the Complex
concerning a Hazardous Material.  Tenant
acknowledges that Landlord, as the owner of the Property, at its election,
shall have the right, at Tenant’s expense, to negotiate, defend, approve and
appeal any action taken or order issued with regard to a Tenant’s Hazardous
Material by an applicable governmental authority.  Provided Tenant is not in default under the
terms of

 30
 

 

this Lease, Tenant shall likewise have the right to participate in any
negotiations, approvals or appeals of any actions taken or orders issued with
regard to the Tenant’s Hazardous Material and Landlord shall not have the right
to bind Tenant in said actions or orders.

 

D.            It shall not be unreasonable for
Landlord to withhold its consent to any proposed assignment or subletting if
(i) the proposed assignee’s or subtenant’s anticipated use of the Premises
involves the storage, use or disposal of Hazardous Material; (ii) if the
proposed assignee or subtenant has been required by any prior landlord, lender
or governmental authority to “clean up” Hazardous Material; (iii) if the
proposed assignee or subtenant is subject to investigation or enforcement order
or proceeding by any governmental authority in connection with the use,
disposal or storage of a Hazardous Material.

E.             Tenant shall surrender the Premises
to Landlord, upon the expiration or earlier termination of the Lease, free of
Tenant’s Hazardous Materials.  If Tenant
fails to so surrender the Premises, Tenant shall indemnify and hold Landlord
harmless from all damages resulting from Tenant’s failure to surrender the
Premises as required by this paragraph, including, without limitation, any
claims or damages in connection with the condition of the Premises including,
without limitation, damages occasioned by the inability to relet the Premises
or a reduction in the fair market and/or rental value of the Premises or the
Complex by reason of the existence of any Hazardous Materials, which are or
were attributable to the activities of Tenant, in or around the Premises or the
Complex.     Notwithstanding any
provision to the contrary in this Lease, if any action is required to be taken
by a governmental authority to clean-up, monitor or remove any Tenant’s
Hazardous Materials from the Premises or the Complex and such action is not
completed prior to the expiration or earlier termination of the Lease, then
at  Landlord’s election (i) until the
date the clean-up, monitoring or removal procedure for Tenant’s Hazardous
Materials is completed, Tenant shall reimburse Landlord for all rental loss
attributable to such Tenant’s Hazardous Materials upon demand; or (ii) Tenant
shall be deemed to have impermissibly held over and Landlord shall be entitled
to all damages directly or indirectly incurred in connection with such holding
over, including without limitation damages occasioned by the inability to relet
the Premises or a reduction in the fair market and/or fair rental value of the
Premises or the Complex by reason of the existence of the Hazardous Material.

F.             Upon the Lease Commencement Date,
Tenant shall provide to Landlord a complete list of all chemicals, toxic waste
or Hazardous Materials employed by Tenant within the Premises.  Throughout the terms of the Lease, Tenant
shall continue to update this list of chemicals, contaminants and Hazardous
Materials.

44.           MISCELLANEOUS AND GENERAL PROVISIONS

                a.  Tenant shall not, without the written consent
of Landlord, use the name of the building for any purpose other than as the
address of the business conducted by Tenant in the Premises.

 31
 

 

b.  This Lease shall in all respects be governed
by and construed in accordance with the laws of the State of California.  If any provision of this Lease shall be
invalid, unenforceable or ineffective for any reason whatsoever, all other
provisions hereof shall be and remain in full force and effect.

 

c.  The term “Premises” includes the space leased
hereby and any improvements now or hereafter installed therein or attached
thereto and the parking and other appurtenant rights granted to Tenant by this
Lease.  The term “Landlord” or any
pronoun used in place thereof includes the plural as well as the singular and
the successors and assigns of Landlord. 
The term “Tenant” or any pronoun used in place thereof includes the
plural as well as the singular and individuals, firms, associations,
partnerships and corporations, and each of their respective heirs, executors,
administrators, successors and permitted assigns, according to the context
hereof, and the provisions of this Lease shall injure to the benefit of and
bind such heirs, executors, administrators, successors and permitted assigns.

    The term “person” includes the plural as
well as the singular and individuals, firms, associations, partnerships and
corporations.  Words used in any gender
include other genders.  If there be more
than one Tenant the obligations of Tenant hereunder are joint and several.  The paragraph headings of this Lease are for
convenience of reference only and shall have no effect upon the construction or
interpretation of any provision hereof.

d.  Time is of the essence of this Lease and of
each and all of its provisions.

e.  At the expiration or earlier termination of
this Lease, Tenant shall execute, acknowledge and deliver to Landlord, within
ten (10) days after written demand from Landlord to Tenant, any quitclaim deed
or other document required by any reputable title company, licensed
to operate in the State of California, to remove the cloud or encumbrance
created by this Lease from the real property of which Tenant’s Premises are a
part.

f.  This instrument along with any exhibits and
attachments hereto constitutes the entire agreement between Landlord and Tenant
relative to the Premises and this agreement and the exhibits and attachments
may be altered, amended or revoked only by an instrument in writing signed by
both Landlord and Tenant.  Landlord and
Tenant hereby agree that all prior or contemporaneous oral agreements between
and among themselves and the agents or representatives relative to the leasing
of the Premises are merged in or revoked by this agreement.

g.  Neither Landlord nor Tenant shall record this
Lease or a short form memorandum hereof without the consent of the other.

h.  Tenant further agrees to execute any
amendments required by a lender to enable Landlord to obtain financing, so long
as Tenant’s rights and obligations hereunder are not affected.

 32
 

 

i.  Paragraph(s)   N/A      
 through    N/A     
 are/is added hereto and
are/is included as a part of this Lease.

 

j.  Clauses, plats and riders, if any, signed by
Landlord and Tenant and endorsed on or affixed to this Lease are a part hereof.

k.  Tenant covenants and agrees that no
diminution or shutting off of light, air or view by any structure which may be
hereafter erected (whether or not by Landlord) shall in any way affect this
Lease, entitle Tenant to any reduction of rent hereunder or result in any liability
of Landlord to Tenant.

l.  Whenever the Lease requires an approval,
consent, designation, determination or judgment by either Landlord or Tenant,
such approval, consent, designation, determination or judgment (including,
without limiting the generality of the foregoing, those required in connection
with assignment and subletting) shall not be unreasonably withheld or delayed
and in exercising any right or remedy hereunder, each party shall at all times
act reasonably and in good faith.

m.  Any expenditure by a party permitted or
required under the Lease, for which such party is entitled to demand and does
demand reimbursement from the other party, shall be limited to the fair market
value of the goods and services involved, shall be reasonably incurred, and
shall be substantiated by documentary evidence available for inspection and
review by the other party or its representative during normal business hours
notice to Landlord at any time after occurrence of the event of interfering
with Tenant’s use.

IN WITNESS WHEREOF, Landlord and
Tenant have executed and delivered this Lease as of the day and year first
above written.

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CROSSROADS
  ASSOCIATES

  	
   

  	
  AVISTAR COMMUNICATIONS

  
	
  CORPORATION,

  	
   

  	
   

  
	
   

  	
   

  	
  a Delaware Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
  /s/Greg Osborn

  	
   

  	
  By

  	
   

  	
  /s/ Robert J. Habig

  	
   

  	
   

  
	
  Title

  	
   

  	
  Partner

  	
   

  	
  Title 

  	
  Chief Financial Officer

  	
   

  
											

 

 33
 

 

	
  

  	
   

  	
   

  	
  Address for Notices
  after the

  
	
  Commencement
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CLOCKTOWER
  ASSOCIATES

  	
   

  	
   

  	
  1875 South Grant
  Street, Suite 1000

  
	
   

  	
   

  	
   

  	
  San Mateo, CA 94402

  
	
   

  	
   

  	
   

  	
  Attn: Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  BY

  	
   

  	
   

  	
   

  	
   

  	
  Address for Notes
  before the 

  
	
  Commencement
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
  Attn: Chief Financial
  Officer

  	 

	
   

  	
   

  	
   

  	
   

  
										

 

 34

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]