Document:

exv10w17

Exhibit 10.17

LEASE AGREEMENT

by and between

CARIBBEAN/GENEVA INVESTORS,

a California limited partnership

and CROSSMAN PARTNERS, L.P.,

a California limited partnership

(“Landlord”) 

and 

ARUBA NETWORKS, INC., 

a Delaware corporation 

(“Tenant”)

Dated
as of September 22, 2009

 

 

EXHIBITS

	 	 	 
	Exhibit “A”

	 	Premises
	 
	 	 
	Exhibit “B”

	 	Land
	 
	 	 
	Exhibit “C”

	 	Declaration of Covenants, Conditions and Restrictions
	 
	 	 
	Exhibit “D”

	 	Rules and Regulations
	 
	 	 
	Exhibit “E”

	 	Form of Tenant Estoppel Certificate
	 
	 	 
	Exhibit “F”

	 	Subordination, Nondisturbance and Attornment Agreement

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BASIC LEASE INFORMATION

	 	 	 
	Lease Date:
	 	September __, 2009
	 
	 	 
	Landlord:
	 	Caribbean/Geneva Investors, a California limited partnership, and Crossman Partners, L.P., a California limited partnership, Tenants In Common
	 
	 	 
	Managing Agent:
	The	 Mozart Development Company
	 
	 	 
	Landlord’s and Managing
	 	 
	Agent’s Address:
	c/o 	The Mozart Development Company
	 
	 	1068 East Meadow Circle
	 
	 	Palo Alto, CA  94303
	 
	 	Attn:  Christian Keith & John Mozart
	 
	 	 
	Tenant:
	 	Aruba Networks, Inc., a Delaware corporation
	 
	 	 
	TENANT’S ADDRESS:
	 	FOR NOTICE  AND FOR BILLING:
	 
	 	 
	 
	 	Aruba Networks, Inc.
	 
	 	1344 Crossman Avenue
	 
	 	Sunnyvale, CA 94089
	 
	 	Attn:  Chief Financial Officer
	 
	 	 
	Building:
	 	The building located at 1322 Crossman Avenue, Sunnyvale, California
	 
	 	 
	Premises:
	 	The entire Building as depicted on Exhibit “A”
	 
	 	 
	Land:
	 	The Real Property described on Exhibit “B”
	 
	 	 
	Rentable Area of the Premises:
	 	52,325 rentable square feet (“Rentable Area”)
	 
	 	 
	Parking Spaces:
	 	All parking spaces located on the Land
	 
	 	 
	Tenant’s Use of the Premises:
	 	General office, research, development, manufacturing, storage and distribution, production, marketing and distribution
	 
	 	 
	Lease Term:
	 	Five (5) years and Eleven Months commencing September 1, 2010 and terminating July 31, 2016.  (the “Initial Term”), with the right to extend for one (1)additional five (5) year term (“Extension Term”) in accordance with Paragraph 43.  The Initial Term, and any Extension Term shall collectively be defined as the “Term”.
	 
	 	 
	Commencement Date:
	 	September 1, 2010
	 
	 	 
	Expiration Date:
	 	July 31, 2016, (subject to extension in accordance with Paragraph 43 to the last date of the exercised Extension Term (if exercised)).
	 
	 	 
	Monthly Base Rent:
	 	$1.00 per rentable square foot of the Rentable Area of the Premises.
	 
	 	 
	Monthly Base Rent
 Adjustment:
	 	On each anniversary of the Commencement Date, the Monthly Base Rent shall increase by three percent 3%) of the Monthly Base Rent for the immediately prior year

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	Tenant’s Share of
	 	 
	Expenses and Taxes:
	 	100%
	 
	 	 
	Security Deposit:
	 	One Month’s Base ($52,325) plus an amount equal to Tenant’s Share of Expenses and Taxes for one month
	 
	 	 
	Guarantor of Lease:
	 	None
	 
	 	 
	Landlord’s Broker:
	 	None
	 
	 	 
	Tenant’s Broker:
	 	Cornish & Carey
	 
	 	 
	Broker’s Fee or Commission,
	 	 
	if any, paid by:
	 	Landlord, pursuant to separate agreement

No further text on this page

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The foregoing Basic Lease Information is hereby incorporated into and made a part of this Lease.
Each reference in this Lease to any of the Basic Lease Information shall mean the respective
information hereinabove set forth and shall be construed to incorporate all of the terms provided
under the particular paragraph pertaining to such information. In the event of any conflict
between any Basic Lease Information and the Lease, the latter shall control.

	 	 	 	 	 
	 

	 	LANDLORD:
	 	 
	 
	 	 	 	 
	 

	 	CARIBBEAN/GENEVA INVESTORS,

a California Limited Partnership	 	 
	 
	 	 	 	 
	 

	 	By: MOZAD, a California Limited Partnership,	 	 
	 

	 	          Its: General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/   John Mozart 
 	 
	 	 	John Mozart 	 
	 	 	Its: Managing General Partner 	 
	 

	 	 	 	 	 
	 

	 	CROSSMAN PARTNERS, L.P.,

a California Limited Partnership
	 	 
	 
	 	 	 	 
	 

	 	By: MOZAD, a California Limited Partnership	 	 
	 

	 	          Its: Managing General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ John Mozart 
 	 
	 	 	John Mozart 	 
	 	 	Its: Managing General Partner 	 
	 

	 	 	 	 	 
	 

	 	By: The Lovewell 2006 Irrevocable
Trust fbo James Barry Lovewell, Dated June 21, 2006 General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ John B. Lovewell
 	 
	 	 	John B. Lovewell, Co-Trustee	 
	 
	 	By:  	
/s/ Cynthia Lovewell
 	 
	 	 	Cynthia Lovewell, Co-Trustee	 
	 

	 	 	 	 	 
	 

	 	By: The Lovewell 2006 Irrevocable
Trust fbo Jennifer Hilary Lovewell, dated June 21, 2006 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ John B. Lovewell
 	 
	 	 	John B. Lovewell, Co-Trustee	 
	 
	 	By:  	
/s/ Cynthia Lovewell
 	 
	 	 	Cynthia Lovewell, Co-Trustee	 
	 

	 	 	 	 	 
	 

	 	TENANT:
	 	 
	 
	 	 	 	 
	 

	 	ARUBA NETWORKS, INC.

a Delaware corporation	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Alexa King	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Alexa King	 	 
	 

	 	 	 	Its:	 	General Counsel	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

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LEASE AGREEMENT

     THIS LEASE AGREEMENT (the “Lease”) is made and entered into as of September___, 2009, by and
between CARIBBEAN/GENEVA INVESTORS, a California Limited Partnership and CROSSMAN PARTNERS, L.P., a
California Limited Partnership, as Tenants in Common (herein collectively called “Landlord”), and
ARUBA NETWORKS, INC., a Delaware corporation (herein called “Tenant”).

     Upon and subject to the terms, covenants and conditions hereinafter set forth, Landlord hereby
leases to Tenant and Tenant hereby hires from Landlord those premises (the “Premises”) outlined on
EXHIBIT A, comprising the entire rentable area in the Building located at 1322 Crossman
Avenue in Sunnyvale, California (hereinafter referred to as the “Building”) specified in the Basic
Lease Information attached hereto. Prior to the execution of this Lease, Tenant has reviewed and
approved the Rentable Area specified in the Basic Lease Information, which shall be conclusive and
binding on the parties for purposes of calculating Rent and the TI Allowance hereunder
notwithstanding any measurement or remeasurement by Landlord, Tenant or any other party that may
now or hereafter indicate a different Rentable Area. The Building, together with the associated
land specified in the Basic Lease Information and improvements is referred to as the “Project.”
The term “Common Area” shall mean all areas and facilities within the Project that are not
designated by Landlord for the exclusive use of Tenant or any other tenant or other occupant of the
Project that are located outside the perimeter (including footings) of the Building, including the
parking areas, access and perimeter roads, pedestrian sidewalks, landscaped areas, trash
enclosures, recreation areas and the like.

     1. OCCUPANCY AND USE. Tenant may use and occupy the Premises for the purposes
specified in the Basic Lease Information (“Permitted Use”), subject to the terms and conditions of
this Lease, and for no other use or purpose without the prior written consent of Landlord.
Landlord shall have the right to grant or withhold consent to a use other than as specified in the
Basic Lease Information in its sole discretion. Tenant shall be entitled to the nonexclusive use
of the Common Area with Landlord and other occupants (if any) of the Project in accordance with the
Rules and Regulations established by Landlord from time to time. Notwithstanding anything to the
contrary in the Basic Lease Information or in this Lease, Tenant understands and agrees that the
Declaration of Covenants, Conditions and Restrictions (“CC&Rs”) described in EXHIBIT C
encumbers the Project and that Tenant’s Occupancy and Use of the Premises are restricted by, and
Tenant shall fully comply with any and all restrictions on the use of the Premises specified in,
such CC&Rs.

     2. TERM AND POSSESSION.

          (a) Term. The term of this Lease (the “Term”) shall be for the period specified in
the Basic Lease Information (or until sooner terminated as herein provided), commencing on the
Commencement Date and expiring on the Expiration Date. By occupying the Premises, Tenant shall
be deemed to have accepted the same as suitable for the purpose herein intended.

          (b) Condition of Premises. Tenant acknowledges that it is currently in possession
of the Premises pursuant to a sublease (“Existing Sublease”) under a lease between Landlord and
Harmonic, Inc. (“Existing Tenant”) dated as of May 24, 2009 for the Premises (“Existing Lease”).
Accordingly, Tenant agrees that to continue in possession of in its “as-is, where-is condition,
with all faults” without any agreements, representations, understandings or obligations on the
part of Landlord to perform any alterations, repairs or improvements to the Premises except as
expressly set forth in paragraphs 2(c) and 7(a)(iii) of this Lease. Tenant acknowledges that
Landlord has not made any representation or warranty, express or implied, with respect to the
condition of the Premises, the suitability or fitness of the Premises for the conduct of Tenant’s
Permitted Uses or for any other purposes, or the actual dimensions of the Premises. In no event
shall Landlord be liable for any defect in the Premises or for any limitations on the use of the
Premises, except as expressly and specifically set forth in this Lease.

          (c) Reimbursement for TI Work. Following execution of this Lease, Tenant shall have the
right (a) to paint the interior Premises and to install new carpet and tile in the Premises
throughout the entire Premises (“Base TI Work”); and (b) to repair the UPS (Uninterrupted Power
System) that is part of the Building

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Systems; to repair the lighting and the ceiling tile in the common areas of the Building;
and to make certain repairs to the HVAC system in the server room (“Supplemental TI Work”)(the
Base TI Work and the Supplemental TI Work, together, the “TI Work”). The TI Work shall be
considered to be Alterations for purposes of the Existing Lease, if performed prior to the
Commencement Date, and for purposes of this Lease, if performed after the Commencement Date, and
Tenant shall comply with the provisions of Paragraph 6 of the Existing Lease or this Lease, as
the case may be, with respect thereto. Following the Commencement Date of this Lease, and
provided that Tenant is not in default of any of its obligations under this Lease, Tenant shall
be entitled to reimbursement from Landlord for the actual cost of the TI Work (“TI Allowance”),
not to exceed Five Dollars ($5.00) per Rentable Square Foot in the Premises; at such time as all
of the following have occurred: (i) Tenant has completed the TI Work; (ii) Tenant has delivered
to Landlord invoices showing the actual cost of all of the TI Work and proof satisfactory to
Landlord that such invoices have been paid; (iii) Tenant has delivered to Landlord and Landlord
has approved in Landlord’s reasonable discretion, executed unconditional mechanic’s lien releases
from any contractor and any subcontractor that supplied labor or materials in connection with the
TI Work. Landlord shall be obligated to reimburse Tenant for the Supplemental TI Work only on
the condition that Tenant has also performed the Base TI Work. In no event will the aggregate
amount that Landlord is obligated to reimburse Tenant for the Base TI Work and the Supplemental
TI Work exceed $5.00 per Rentable Square Foot. Landlord shall make payment to Tenant within
thirty (30) days of Tenant’s satisfaction of all such conditions.

          (d) Existing Lease and Sublease. The term of the Existing Lease expires as of August 31,
2010 and the Existing Tenant has not exercised its option to renew under the Existing Lease. The
term of the Existing Sublease also expires as of August 31, 2010. Tenant hereby acknowledges and
confirms that Tenant has no further rights to extend the Existing Sublease or continue in
possession of the Premises under the Existing Sublease following August 31, 2010.

          3. RENT; RENT ADJUSTMENTS; ADDITIONAL CHARGES FOR EXPENSES AND TAXES.

          (a) Monthly Base Rent and Additional Charges. Commencing on the Commencement Date and
throughout the Term of this Lease, Tenant shall the monthly base rent specified in the Basic
Lease Information, as adjusted pursuant to Paragraph 3(b) (as so adjusted from time to time,
“Monthly Base Rent”), on the first day of each month, in advance, with the first month’s Monthly
Base Rent and Additional Charges for Expenses and Taxes (as defined below) due upon execution of
this Lease, in lawful money of the United States (without any prior demand therefor and without
deduction or offset whatsoever, except as expressly provided in Paragraphs 20 and 21 ) to
Landlord or its Managing Agent at the address specified in the Basic Lease Information or to such
other firm or to such other place as Landlord or its Managing Agent may from time to time
designate in writing. In addition, Tenant shall pay to Landlord all charges and other amounts
whatsoever as provided in this Lease (“Additional Charges”) at the place where the Monthly Base
Rent is payable, and Landlord shall have the same remedies for a Default in the payment of
Additional Charges as for a Default in the payment of Monthly Base Rent. As used herein, the
term “Rent” shall include all Monthly Base Rent and Additional Charges (including, without
limitation, Additional Charges for Real Estate Taxes and Expenses pursuant to Paragraph 3(c)
below, and Additional Charges pursuant to Paragraphs 6, 7(e), 8, 10(d) and 23). If the
Commencement Date occurs on a day other than the first day of a calendar month, or the Expiration
Date occurs on a day other than the last day of a calendar month, then the Monthly Base Rent and
Additional Charges for such fractional month shall be prorated on a daily basis.

          (b) Annual Adjustments in Monthly Base Rent. The Monthly Base Rent under Paragraph 3(a)
shall be adjusted throughout the Term (including any Extension Term(s)) as provided in the Basic
Lease Information under the heading “Monthly Base Rent Adjustment”.

          (c) Additional Charges for Expenses and Taxes.

          (i) Definitions of Additional Charges. For purposes of this Paragraph 3(c), the
following terms shall have the meanings hereinafter set forth:

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          (A) “Tax Year” shall mean each twelve (12) consecutive month period commencing
January 1st of the calendar year during which the Commencement Date of this Lease
occurs, provided that Landlord, upon notice to Tenant, may change the Tax Year from
time to time to any other twelve (12) consecutive month period and, in the event of
any such change, Tenant’s Share of Real Estate Taxes (as hereinafter defined) shall
be equitably adjusted for the Tax Years involved in any such change.

          (B) “Tenant’s Share” shall mean the percentage figure so specified in the Basic
Lease Information.

          (C) “Real Estate Taxes” shall mean all taxes, assessments and charges levied
upon or with respect to the Project or any personal property of Landlord used in the
operation thereof, or Landlord’s interest in the Project or such personal property.
Real Estate Taxes shall include, without limitation, all general real property taxes
and general and special assessments, charges, fees or assessments for transit,
housing, police, fire or other governmental services or purported benefits to the
Project (provided, however, that any refunds of Real Estate Taxes paid by Tenant
shall be credited against Tenant’s further obligation to pay Real Estate Taxes
during the Term or refunded to Tenant if received by Landlord within one year after
the Expiration Date), service payments in lieu of taxes, and any tax, fee or excise
on the act of entering into this Lease, or any other lease of space in the Building,
or on the use or occupancy of the Building or any part thereof, or on the rent
payable under any lease or in connection with the business of renting space in the
Building, that are now or hereafter levied or assessed against Landlord by the
United States of America, the State of California, or any political subdivision,
public corporation, district or any other political or public entity, and shall also
include any other tax, fee or other excise, however described, that may be levied or
assessed as a substitute for, or as an addition to, in whole or in part, any other
Real Estate Taxes, whether or not now customary or in the contemplation of the
parties on the date of this Lease. Real Estate Taxes shall not include franchise,
transfer, inheritance or capital stock taxes or income taxes measured by the net
income of Landlord from all sources unless, due to a change in the method of
taxation, any of such taxes is levied or assessed against Landlord as a substitute
for, in whole or in part, any other tax that would otherwise constitute a Real
Estate Tax. Additionally, Real Estate Taxes shall not include any assessments or
like charges to pay for any remediation of contamination from any Hazardous
Substance (defined in Paragraph 41 hereof) existing at the Project as of the
Commencement Date unless introduced in, on, under or about the Premises by Tenant or
Tenant’s employees, agents, contractors or invitees. Real Estate Taxes shall also
include reasonable legal fees, costs and disbursements incurred in connection with
proceedings to contest, determine or reduce Real Estate Taxes; provided that such
fees, costs and disbursements do not exceed the actual savings in Real Estate Taxes
obtained by Tenant over the Term of the Lease. If any assessments are levied on the
Project, Tenant shall have no obligation to pay more than that amount of annual
installments of principal and interest that would become due during the Term had
Landlord elected to pay the assessment in installment payments, even if Landlord
pays the assessment in full.

          (D) “Expenses” shall mean the total costs and expenses paid or incurred by
Landlord in connection with the management, operation, maintenance and repair of the
Project, including, without limitation (i) the cost of air conditioning,
electricity, steam, heating, mechanical, ventilating, elevator systems and all other
utilities, to the extent provided by Landlord, and the cost of supplies and
equipment and maintenance and service contracts in connection therewith; (ii) the
cost of repairs and general maintenance and cleaning, subject to the limitation on
the annual cost of maintenance to the roof membrane as set forth in paragraph
7(a)(i); (iii) the cost of fire, extended coverage, boiler, sprinkler, public
liability, property damage, rent, earthquake (if Landlord elects to obtain it) and
other insurance for the Project obtained by Landlord, or otherwise obtained by
Landlord in connection with the Project, all including, without limitation,
insurance premiums and any deductible amounts paid by Landlord, including, without
limitation, the insurance required by Paragraph 10(f); (iv) fees, charges and other
costs directly related to the operation of the Project (as distinct from the
operation of the partnership which owns

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the Project), including management fees, consulting fees, legal fees and
accounting fees, fees of all independent contractors engaged by Landlord directly
related to the operation of the Project or reasonably charged by Landlord if
Landlord performs management services in connection with the Project, (though the
management fee shall not exceed the cap noted in the following paragraph); (v) the
cost of any capital improvements made to the Project after the Commencement Date
(excluding, however, any capital improvements required by Laws that are Tenant’s
responsibility under Paragraph 5, which shall be paid directly by Tenant pursuant to
Paragraph 5), (and further excluding the cost of any capital repairs or replacements
to the roof structure, including the roof membrane, that are the obligation of
Landlord pursuant to paragraph 7(a)(i), which shall be borne entirely by Landlord,
and the cost of any capital repairs or replacements to the HVAC system that are the
obligation of Landlord pursuant to, and as limited by, paragraph 7(a)(iii), which
shall be borne entirely by Landlord). The cost of such capital improvements
incurred by Landlord , subject to the foregoing exclusions, shall be amortized over
the useful life of the capital item in question as determined in accordance with
generally accepted accounting principles (“GAAP”), together with interest on the
unamortized balance at the greater of (x) the rate paid by Landlord on funds
borrowed from an institutional lender for the purpose of constructing such capital
improvements; or (y) 10% per annum; provided, however, the amount of the cost of
capital improvements which may be included within Expenses pursuant to this clause
(v) shall be the greater of (I) the amount that would be payable pursuant to the
foregoing amortization or (II) $.02 per square foot of the Rentable Area of the
Premises per month (and to the extent the amount under this clause (II) exceeds the
amount that would be payable under clause (I), such excess shall be credited against
the unamortized balance of the cost of capital improvements in the inverse order in
which they would be payable by Tenant under clause (i)); and (vi) any other
reasonable expenses of any other kind whatsoever reasonably incurred in managing,
operating, maintaining and repairing the Project. Any “deductible” amounts relating
to capital improvements required to be paid by Tenant hereunder in connection with
any property or earthquake insurance policy carried by Landlord shall be amortized
over the useful life of the restoration work to which such deductible amount relates
in accordance with GAAP, in the same manner as other capital improvements that are
included in Expenses as provided above.

Notwithstanding anything to the contrary herein contained, Expenses shall not
include, and in no event shall Tenant have any obligation to pay for pursuant to
this Paragraph 3 or Paragraph 7(a)7(b), (aa) any rent payable pursuant to a ground
lease, and debt service (including, but without limitation, interest, principal and
any impound payments) required to be made on any mortgage or deed of trust recorded
with respect to all or any portion of the Project other than debt service and
financing charges imposed pursuant to Paragraph 3(c)(i)(D)(v) above; (bb)
depreciation; (cc) the portion of a management fee paid to Landlord or affiliate in
excess of three percent (3%) of Monthly Base Rent and Additional Charges for
Expenses and Taxes (excluding the management fee); (dd) costs occasioned by the
fraud or willful misconduct under applicable laws of Landlord or its agents,
servants, contractors, employees; (ee) costs for which Landlord has a right of and
has received reimbursement from others; (ff) environmental pollution remediation
related costs for which Landlord has indemnified Tenant pursuant to Paragraph 41(c);
(gg) advertising or promotional expenditures; and (hh) leasing commissions. All
costs and expenses shall be determined in accordance with GAAP which shall be
consistently applied (with accruals appropriate to Landlord’s business).

          (E) “Expense Year” shall mean each twelve (12) consecutive month period
commencing January 1 of the calendar year during which the Commencement Date of the
Lease occurs, provided that Landlord, upon notice to Tenant, may change the Expense
Year from time to time to any other twelve (12) consecutive month period, and, in
the event of any such change, Tenant’s Share of Expenses shall be equitably adjusted
for the Expense Years involved in any such change.

          (ii) Payment of Real Estate Taxes. With reasonable promptness after Landlord has
received the tax bills for any Tax Year, Landlord shall furnish Tenant with a statement
(herein called

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“Landlord’s Tax Statement”) setting forth the amount of Real Estate Taxes for such Tax
Year. Unless otherwise required pursuant to Paragraph 3(c)(v) below, Tenant shall pay to
Landlord the full amount of said actual Real Estate Taxes no later than twenty (20) days
prior to the due date of each installment of Real Estate Taxes. Notwithstanding the
foregoing, Landlord shall have the right, upon the giving of written notice to Tenant, to
require Tenant to pay the estimated amount of Real Estate Taxes; and if Landlord gives such
notice, Tenant shall, commencing with the next succeeding calendar month, pay to Landlord as
Additional Charges one-twelfth (1/12th) of the Real Estate Taxes for each Tax Year on or
before the first day of each month during such Tax Year, in advance, in an amount reasonably
estimated by Landlord and billed by Landlord to Tenant. Landlord shall have the right
initially to determine monthly estimates and to revise such estimates from time to time. If
the actual Real Estate Taxes for such Tax Year (as shown on Landlord’s Tax Statement) exceed
the estimated Real Estate Taxes paid by Tenant for such Tax Year, Tenant shall pay to
Landlord the difference between the amount paid by Tenant and the actual Real Estate Taxes
within fifteen (15) days after the receipt of Landlord’s Tax Statement, and if the total
amount paid by Tenant for any such Tax Year shall exceed the actual Real Estate Taxes for
such Tax Year, such excess shall be credited against the next installment of Real Estate
Taxes due from Tenant to Landlord hereunder or if the Term has ended it shall be returned to
Tenant within thirty (30) days. If it has been determined that Tenant has overpaid Real
Estate Taxes during the last year of the Lease Term, then Landlord shall reimburse Tenant
for such overage on or before the thirtieth (30th) day following the Expiration Date. No
delay by Landlord in providing Landlord’s Tax Statement shall be deemed a default by
Landlord or a waiver of Landlord’s right to require payment of the actual or estimated sums
of Real Estate Taxes.

          (iii) Payment of Insurance Costs. With reasonable promptness after Landlord has
received an invoice for any fire, extended coverage, boiler, sprinkler, public liability,
property damage, rent, earthquake (if Landlord elects to obtain it) and other insurance for
the Project obtained by Landlord, or otherwise obtained by Landlord in connection with the
Project, including, without limitation, the insurance required by Paragraph 10(f), Landlord
shall furnish Tenant with a statement (herein called “Landlord’s Insurance Statement”)
setting forth the amount of the premium for such insurance. Unless otherwise required
pursuant to Paragraph 3(c)(v) below, Tenant shall pay to Landlord the full amount of said
insurance premium no later than twenty (20) days prior to the due date of such insurance
premium. Notwithstanding the foregoing, Landlord shall have the right, upon the giving of
written notice to Tenant, to require Tenant to pay the estimated amount of Landlord’s cost
of insurance in monthly installments in accordance with the provisions of Paragraph 3(c)(iv)
below.

          (iv) Payment of Expenses. Commencing on the Commencement Date, Tenant shall pay to
Landlord as Additional Charges one-twelfth (1/12th) of the Expenses (including insurance
premiums if Landlord has made the election described in the last sentence of Paragraph
3(c)(iii) above) for each Expense Year on or before the first day of each month of such
Expense Year, in advance, in an amount reasonably estimated by Landlord and billed by
Landlord to Tenant, and Landlord shall have the right initially to determine monthly
estimates and to revise such estimates from time to time. With reasonable promptness after
the expiration of each Expense Year, Landlord shall furnish Tenant with a statement (herein
called “Landlord’s Expense Statement”), setting forth in reasonable detail the Expenses for
such Expense Year. If the actual Expenses for such Expense Year exceed the estimated
Expenses paid by Tenant for such Expense Year, Tenant shall pay to Landlord the difference
between the amount paid by Tenant and the actual Expenses within fifteen (15) days after the
receipt of Landlord’s Expense Statement, and if the total amount paid by Tenant for any such
Expense Year shall exceed the actual Expenses for such Expense Year, such excess shall be
credited against the next installment of the estimated Expenses due from Tenant to Landlord
hereunder or if the Term has ended it shall be returned to Tenant within thirty (30) days.
Any utility rebates for the Project which Landlord receives for payments made by Tenant
shall be forwarded to Tenant so long as such rebate is received within one year following
the Expiration Date or sooner termination of the Lease. If it has been determined that
Tenant has overpaid Expenses during the last year of the Lease Term (including rebates of
utilities applicable to Tenant), then Landlord shall reimburse Tenant for such overage on or
before the thirtieth (30th) day following the Expiration Date.

          (v) Other. To the extent any item of Real Estate Taxes or Expenses is payable by
Landlord in advance of the period to which it is applicable (e.g. insurance and tax escrows
required by

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Landlord’s Lender), or to the extent that prepayment is customary for the service or
matter, Landlord may (i) include such items in Landlord’s estimate for periods prior to the
date such item is to be paid by Landlord and (ii) to the extent Landlord has not collected
the full amount of such item prior to the date such item is to be paid by Landlord, Landlord
may include the balance of such full amount in a revised monthly estimate for Additional
Charges. If the Commencement Date or Expiration Date shall occur on a date other than the
first day of a Tax Year and/or Expense Year, Tenant’s Share of Real Estate Taxes and
Expenses, for the Tax Year and/or Expense Year in which the Commencement Date occurs shall
be prorated.

          (vi) Audit. Within one hundred eighty (180) days after receipt of any Expense
Statement or Tax Statement from Landlord, Tenant shall have the right to examine and copy
Landlord’s books and records relating to such Expense Statements and Tax Statements, or
cause an independent audit thereof to be conducted by an accounting firm to be selected by
Tenant and subject to the reasonable approval of Landlord. If the audit conclusively proves
that Tenant has overpaid either Expenses or Real Estate Taxes, then Landlord shall reimburse
Tenant within thirty (30) days for such overage together with interest on such overpayment
at the Default Rate (as defined in 3(d) below), and if such overage exceeds five percent
(5%) of the actual amount of Expenses or Real Estate Taxes paid by Landlord for the Tax or
Expense Year covered by such audit, then Landlord shall bear the reasonable cost of such
audit, up to a maximum cost of $5,000. If Tenant fails to object to any such Expense
Statement or Tax Statement or conduct an independent audit thereof within one hundred eighty
(180) days after receipt thereof, such Expense Statement and/or Tax Statement shall be final
and shall not be subject to any audit, challenge or adjustment. All information obtained
through any audit by Tenant and any compromise, settlement or adjustment reached between
Landlord and Tenant relative to the results of such audit shall be held in strict confidence
by the Tenant.

          (d) Late Charges. Tenant recognizes that late payment of any Monthly Base Rent or
Additional Charges will result in administrative expenses to Landlord, the extent of which
additional expense is extremely difficult and economically impractical to ascertain. Tenant
therefore agrees that if any Monthly Base Rent or Additional Charges remain unpaid five (5) days
after such amount is due, the amount of such unpaid Monthly Base Rent or Additional Charges shall
be increased by a late charge to be paid to Landlord by Tenant in an amount equal to four percent
(4%) of the amount of the delinquent Monthly Base Rent or Additional Charges. In addition, any
outstanding Monthly Base Rent, Additional Charges, late charges and other outstanding Rent
amounts shall accrue interest at an annualized rate of the lesser of (i) the greater of 10% or
The Federal Reserve Discount Rate plus 5% until paid to Landlord, or (ii) the maximum rate
permitted by law (“the Default Rate”). Tenant agrees that such amount is a reasonable estimate
of the loss and expense to be suffered by Landlord as a result of such late payment by Tenant and
may be charged by Landlord to defray such loss and expense. The provisions of this Paragraph
3(d) in no way relieve Tenant of the obligation to pay Monthly Base Rent or Additional Charges on
or before the date on which they are due, nor do the terms of this Paragraph 3(d) in any way
affect Landlord’s remedies pursuant to Paragraph 19 in the event any Monthly Base Rent or
Additional Charges are unpaid after the date due.

          4. RESTRICTIONS ON USE. Tenant shall not use or allow the Premises to be used for any
unlawful purpose, nor shall Tenant cause or maintain or permit any nuisance in, on or about the
Premises. Tenant shall not commit or suffer the commission of any waste in, on or about the
Premises.

          5. COMPLIANCE WITH LAWS.

          (a) Tenant’s Compliance Obligations. Tenant shall not use the Project or permit anything to
be done in or about the Project which will in any way conflict with any present and future laws,
statutes, ordinances, resolutions, regulations, proclamations, orders or decrees of any
municipal, county, state or federal government or other governmental or regulatory authority with
jurisdiction over the Project, or any portion thereof, whether currently in effect or adopted in
the future and whether or not in the contemplation of the parties hereto (collectively, “Laws”),
and Tenant shall promptly, at its sole expense, maintain the Premises, any Alterations (as
defined in Paragraph 6 below) permitted hereunder and Tenant’s use and operations thereon in
strict compliance at all times with all Laws. “Laws” shall include, without limitation, all Laws
relating to health and safety (including, without limitation, the California Occupational Safety
and Health Act of 1973 and the

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California Safe Drinking Water and Toxic Enforcement Act of 1986, including posting and
delivery of notices required by such Laws with respect to the Premises), disabled accessibility
(including, without limitation, the Americans with Disabilities Act, 42 U.S.C. section 12101
et seq.), Hazardous Substances, and all present and future life safety, fire,
sprinkler, seismic retrofit, building code and municipal code requirements; provided however,
that Tenant’s obligation to comply with Laws relating to Hazardous Substances is subject to the
terms and conditions of Paragraph 41, and Tenant shall not be responsible for compliance with
clean-up provisions of any Laws with respect to Hazardous Substances except to the extent of any
release caused by the Tenant or any of its servants, employees, contractors, agents, licensees or
invitees (collectively, including Tenant, the “Tenant Parties”) or otherwise included in Tenant’s
indemnity contained in Paragraph 41. Notwithstanding the foregoing, Landlord, and not Tenant,
shall be responsible for correcting any condition with respect to the exterior or structural
portions of the Building (but not with respect to the interior of the Premises), which is in
violation of applicable Laws (subject to Tenant’s obligation to pay such costs to the extent they
are included as Expenses under Paragraph 3(c)(i)(D) above), except to the extent such condition
is caused by the negligent or intentional acts or omissions of the Tenant Parties, or such
violation results from Tenant’s particular use of the Premises, or such condition will be altered
in connection with the installation of any Alterations. Any Alterations that are Tenant’s
responsibility pursuant to this Paragraph 5 shall be made in accordance with Paragraph 6 below,
at Tenant’s sole cost. The parties acknowledge and agree that Tenant’s obligation to comply with
all Laws as provided in this paragraph (subject to the limitations contained herein) is a
material part of the bargained-for consideration under this Lease. Tenant’s obligations under
this Paragraph and under Paragraph 7(c) below shall include, without limitation, the
responsibility of Tenant to make substantial or structural repairs and alterations to the
Premises to the extent provided above, regardless of, among other factors, the relationship of
the cost of curative action to the Rent under this Lease, the length of the then remaining Term
hereof, the relative benefit of the repairs to Tenant or Landlord, the degree to which the
curative action may interfere with Tenant’s use or enjoyment of the Premises, and the likelihood
that the parties contemplated the particular Law involved.

          (b) Insurance Requirements. Tenant shall not do or permit anything to be done in or about
the Premises or bring or keep anything therein which will in any way increase the rate of any
insurance upon the Project or any of its contents (unless Tenant agrees to pay for such increase)
or cause a cancellation of any insurance on the Project or otherwise violate any requirements,
guidelines, conditions, rules or orders with respect to such insurance. Tenant shall at its sole
cost and expense promptly comply with the requirements of the Insurance Services Office (ISO),
board of fire underwriters, or other similar body now or hereafter constituted relating to or
affecting Tenant’s use or occupancy of the Project (other than in situations where compliance
involves repair, maintenance or replacement of items that Landlord is expressly required to
repair, maintain or replace under this Lease).

          (c) No Limitation on Obligations. The provisions of this Paragraph 5 shall in no way limit
Tenant’s maintenance, repair and replacement obligations under Paragraph 7 or Tenant’s obligation
to pay Expenses under Paragraph 3(c). The judgment of any court of competent jurisdiction or the
admission of Tenant in an action against Tenant, whether Landlord is a party thereto or not, that
Tenant has so violated any such Law shall be conclusive of such violation as between Landlord and
Tenant.

          6. ALTERATIONS.

          (a) Tenant shall not make or suffer to be made any additional alterations, additions or
improvements (“Alterations”) in, on or to the Premises or any part thereof without the prior
written consent of Landlord. Failure of Landlord to give its approval within fifteen (15)
calendar days after receipt of Tenant’s written request for approval shall constitute disapproval
by Landlord. Any Alterations in, on or to the Premises, except for Tenant’s trade fixtures and
movable furniture and equipment, shall be the property of Tenant during the Term and shall become
Landlord’s property at the end of the Term without compensation to Tenant. Landlord shall not
unreasonably withhold or delay its consent to Alterations that (i) do not materially affect the
structure of the Building or its electrical, plumbing, HVAC, security or other systems, (ii) are
not visible from the exterior of the Premises and do not otherwise affect the exterior appearance
of the Building, (iii) are consistent with Tenant’s Permitted Use hereunder; (iv) do not require
any application to a political jurisdiction for rezoning, general plan amendment, variance,
conditional use permit or architectural review approval, (v) will not interfere with the use and
occupancy of any other portion of the Project by Landlord or by any other tenants or occupants

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or their invitees, or by any other party with the right to use any portion of the Project,
(vi) comply with any ground lease, CC&Rs (including without limitation the CC&Rs described in
EXHIBIT C) and Mortgages, and (vii) do not adversely affect the value or marketability of
Landlord’s reversionary interest upon termination or expiration of this Lease.

          (b) If Landlord consents to the making of any Alterations by Tenant, the same shall be made
by Tenant, at Tenant’s sole cost and expense, in accordance with plans and specifications
submitted by Tenant to Landlord concurrently with its request pursuant to Paragraph 6(a) and
reasonably approved by Landlord, and any contractor or person selected by Tenant to make the same
must first be reasonably approved in writing by Landlord. With respect to any Alterations that
affect the structure of the Building, the Building Systems, or any portion of the Project outside
the Premises, at Landlord’s option the Alterations shall be made by Landlord, or by a contractor
specified by Landlord, for Tenant’s account and Tenant shall reimburse Landlord for the cost
thereof (including a reasonable charge for Landlord’s overhead) as an Additional Charge, within
twenty (20) days after receipt of a statement from Landlord therefor.

          (c) Tenant shall reimburse Landlord upon demand for any reasonable out-of-pocket expenses
incurred by Landlord in the review of any Alterations made by Tenant, including fees charged by
Landlord’s contractors or consultants to review plans and specifications, and such obligation
shall be an Additional Charge. Landlord’s consent to any Alterations shall not obligate Landlord
to repair, maintain, insure or otherwise assume any responsibility or liability with respect to
any such Alteration. In addition, notwithstanding Landlord’s review, Tenant and not Landlord
shall be responsible for compliance of the Alterations, and plans and specifications therefor,
with all applicable Laws, and Landlord shall not be responsible for any omissions or errors
therein.

          (d) Upon the expiration or sooner termination of the Term, Tenant shall upon demand by
Landlord, at Landlord’s election either (i) at Tenant’s sole cost and expense, forthwith and with
all due diligence remove any Alterations made by or for the account of Tenant, designated by
Landlord to be removed (provided, however, that upon the written request of Tenant prior to
installation of such Alterations, Landlord shall advise Tenant at that time whether or not such
Alterations must be removed upon the expiration or sooner termination of this Lease), and restore
the Premises to substantially its original condition as of the Commencement Date, subject to
normal wear and tear and the rights and obligations of Tenant concerning casualty damage pursuant
to Paragraph 20 or (ii) pay Landlord the reasonable estimated cost thereof.

          7. REPAIR AND MAINTENANCE.

          (a) Landlord’s Obligations.

          (i) Landlord shall maintain, repair and replace, except as provided in Paragraph 7(c),
the exterior (excluding windows and window frames); roof structure, including the roof
membrane, water tight and in good working condition; and structural portions of the Building
(including load bearing walls and foundations). Tenant’s obligation to reimburse Landlord
for maintenance of the roof membrane shall be limited to Two Thousand Five Hundred Dollars
($2,500) for any Expense Year. Any capital repairs or replacements required to keep the
roof structure, including the membrane, watertight and in good working condition shall be at
the sole expense of Landlord.

          (ii) Landlord shall maintain, repair and replace the parking areas, courtyards,
sidewalks, entryways, lawns, fountains, landscaping and other similar facilities located in
the Common Area.

          (iii) Tenant shall furnish to Landlord a report on the condition of the HVAC system
serving the Premises; and Landlord shall be entitled to obtain its own independent report.
Prior to the Commencement Date, Landlord shall make repairs or replacements to those items
identified in Tenant’s report for the HVAC system that are reasonably required to put the
HVAC system in good working order, as such repairs or replacements are confirmed by
Landlord’s report. Notwithstanding, the foregoing, however, Landlord’s obligation to put
the HVAC system in good working order shall be limited to those

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repairs or replacements necessary for the HVAC system to serve normal occupancy loads
for office research and development uses, exclusive of specialized or overstandard equipment
or uses installed by Tenant in the Premises, such as server rooms, special purpose R & D
rooms, clean rooms or similar uses. Landlord shall responsible at its sole expense for the
cost of capital repairs or replacements to the HVAC system during the Term of the Lease
(whether made pursuant to the preceding sentence or later in the Term of the Lease), but
Landlord’s obligation shall in all events be limited to capital repairs or replacements
reasonably required to keep the HVAC system in good working order to serve normal occupancy
loads for office, research and development uses, exclusive of specialized or overstandard
equipment or uses installed by Tenant, such as server rooms, special purpose R & D rooms,
clean rooms or similar uses; and any costs in excess of Landlord’s obligation for capital
repairs and replacements shall be the obligation of Tenant.

All costs incurred by Landlord in connection with the foregoing obligations other than (1) the
obligations of Landlord set forth in subparagraph 7(a)(i), including any excess over Tenant’s
maximum obligation for $2,500 per Expense Year for maintenance of the roof structure and (2) the
obligations of Landlord as set forth in, and as limited by, subparagraph 7(a)(iii), shall be
payable by Tenant as Additional Charges in accordance with Paragraph 3(c) to the extent they are
properly included in Expenses thereunder. Landlord’s obligations under this Paragraph 7(a) with
respect to any particular repair, replacement or maintenance requirement, shall not commence until
Tenant notifies Landlord in writing of any circumstances which Tenant believes may trigger
Landlord’s obligations.

          (b) Tenant’s Obligations. Tenant shall maintain, repair and replace, at its sole cost and
expense, all portions of the Premises which are not Landlord’s obligations under Paragraph 7(a),
including, without limitation, (i) the windows, and window frames; (ii) the building systems
serving the Premises for electrical, mechanical, HVAC (other than those costs specifically made
the obligation of Landlord in paragraph 7(a)(iii) above) and plumbing and all controls
appurtenant thereto, and any elevators in the Building (collectively, including elevators,
“Building Systems”); and (iii) the interior portion of the Building, the Alterations, and any
additional tenant improvements, alterations or additions installed by or on behalf of Tenant
within the Premises. Tenant shall be responsible for the expense of installation, operation, and
maintenance of its telephone and other communications cabling from the point of entry into the
Building to the Premises and throughout the Premises, though Landlord shall have the right to
perform such work on behalf of Tenant in Common Areas, provided Landlord performs such work in
coordination with Tenant and its contractors in such a manner as will accommodate Tenant’s
reasonable objectives with respect thereto. The Premises shall at all times be maintained by
Tenant in the condition of a first-class office building. Tenant’s obligations under this
Paragraph 7 include, without limitation, the replacement, at Tenant’s sole cost and expense, of
any portions of the Premises or Building Systems which are not Landlord’s express responsibility
under Paragraph 7(a), if it would be commercially prudent to replace, rather than repair, such
portions of the Premises, regardless of whether such replacement would be considered a capital
expenditure. Tenant hereby waives and releases its right to make repairs at Landlord’s expense
under Sections 1941 and 1942 of the California Civil Code or under any similar law, statute or
ordinance now or hereafter in effect. In addition, Tenant hereby waives and releases its right
to terminate this Lease under Section 1932(1) of the California Civil Code or under any similar
law, statute or ordinance now or hereafter in effect.

          (c) Additional Obligations of Tenant. The purpose of Paragraph 7(a) and 7(b) is to define
the obligations of Landlord and Tenant to perform various repair and maintenance functions; the
allocation of the costs therefor are covered under this Paragraph 7(c) and Paragraph 3. Tenant
shall bear the full cost of repairs or maintenance interior or exterior, structural or otherwise,
to preserve the Premises and the Building in good working order and first-class condition,
arising out of (i) the existence, installation, use or operation of any Alterations or any of
Tenant’s trade fixtures or personal property; (ii) the moving of Tenant’s property or fixtures in
or out of the Building or Project or in and about the Premises; (iii) the particular use or
particular occupancy or manner of use or occupancy of the Premises by any Tenant Party; or (iv)
except to the extent any claims arising from any of the foregoing are reimbursed by insurance
carried by Landlord, are covered by the waiver of subrogation in Paragraph 11 or are otherwise
provided for in Paragraph 20, the acts, omissions or negligence of any Tenant Parties.

          (d) Maintenance Service Contracts. In connection with Tenant’s maintenance and repair
obligations contained in this Paragraph 7, Tenant shall, at its own cost and expense, enter into
regularly

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scheduled preventive maintenance service contracts with maintenance contractors approved by
Landlord, in its reasonable discretion, for servicing all Building Systems, elevators and
equipment within the Premises, and shall provide copies of such contracts and periodic
maintenance reports to Landlord. At Landlord’s option at any time in which Tenant is in Default
hereunder, maintenance service contracts shall be prepaid on an annual basis. Each maintenance
service contract shall specifically name Landlord as a third party beneficiary, with the right to
receive copies of all notices delivered under such contract and the ability to exercise Tenant’s
rights thereunder, at Landlord’s election, in connection with any cure of Tenant’s default by
Landlord, or any assumption by Landlord of Tenant’s maintenance obligations with respect to
Building Systems, pursuant to Paragraph 7(e) below.

          (e) Cure Rights. Tenant shall have a period of thirty (30) days from the date of written
notice from Landlord within which to cure any failure to fulfill any of its obligations under
this Paragraph 7; provided, however, that if such failure is curable but cannot be cured within
such thirty (30) day period, Tenant shall have such additional time as may be reasonably required
to cure (not to exceed sixty (60) additional days) so long as Tenant commences such cure within
such (30) day period and diligently prosecutes such cure to completion. Landlord shall have the
rights set forth in Paragraph 23 with respect to any failure of Tenant to perform its obligations
under this Paragraph 7. In addition, Landlord may elect, by delivery of written notice to
Tenant, to assume Tenant’s maintenance obligations with respect to the Building Systems under
item (ii) of Paragraph 7(b) if Tenant does not cure any breach of such obligations, or if Tenant
has failed to perform such obligations more than once in any twelve month period (without benefit
of cure periods) upon the second such failure. If Landlord assumes such obligations, all costs
incurred by Landlord in connection therewith shall be included in Expenses payable by Tenant as
Additional Charges in accordance with Paragraph 3(c). The remedies described in this paragraph
are cumulative and in addition to any other remedies Landlord may have at law or under this
Lease.

          (f) No Abatement. Except to the extent any claims arising from any of the foregoing are
reimbursed by rental abatement insurance proceeds actually received by Landlord, are covered by
the waiver of subrogation in Paragraph 11 or are otherwise provided for in Paragraph 20, there
shall be no abatement of Rent with respect to, and except for Landlord’s gross negligence or
willful misconduct, Landlord shall not be liable for any injury to or interference with Tenant’s
business arising from, any repairs, maintenance, alteration or improvement in or to any portion
of the Project, including the Premises, or in or to the fixtures, appurtenances and equipment
therein.

          8. LIENS. Tenant shall keep the Premises free from any liens arising out of any work
performed, material furnished or obligations incurred by Tenant. In the event that Tenant shall
not, within ten (10) days following the imposition of any such lien, cause the same to be released
of record by payment or posting of a proper bond, Landlord shall have, in addition to all other
remedies provided herein and by law, the right, but not the obligation, to cause the same to be
released by such means as it shall deem proper, including without limitation by the payment of the
claim giving rise to such lien or by the posting of a bond. All such sums paid by Landlord and all
expenses incurred by Landlord in connection therewith shall be considered Additional Charges and
shall be payable to Landlord by Tenant on demand with interest from the date incurred by Landlord
at the Default Rate. Landlord shall have the right at all times to post and keep posted on the
Premises any notices permitted or required by law, or which Landlord shall deem proper, for the
protection of Landlord, the Premises, the Project and any other party having an interest therein,
from mechanics’ and materialmen’s liens, and Tenant shall give written notice to Landlord at least
fifteen (15) business days’ prior to commencement of any construction on the Premises.

          9. ASSIGNMENT AND SUBLETTING.

          (a) Except as otherwise provided in this Paragraph 9, Tenant shall not directly or
indirectly, voluntarily or by operation of law, sell, assign, encumber, pledge or otherwise
transfer or hypothecate all or any part of the Premises or Tenant’s leasehold estate hereunder
(collectively, “Assignment”), or permit the Premises to be occupied by anyone other than Tenant
or sublet the Premises or any portion thereof (collectively, “Sublease”), without Landlord’s
prior written consent in each instance, which consent shall not be unreasonably withheld;
provided, however, that Tenant shall have the right to enter into an Assignment of Sublease to
any affiliate of Tenant pursuant to Paragraph 9(f) below or a Permitted Transfer pursuant to
Paragraph 9(d) below. Without otherwise limiting the criteria upon which Landlord may withhold
its consent to any proposed Sublease

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or Assignment, if Landlord withholds its consent where either (i) the creditworthiness of
the proposed Sublessee or Assignee is not reasonably acceptable to Landlord, or (ii) the proposed
Sublessee’s or Assignee’s use of the Premises is not in compliance with the Permitted Use as
described in the Basic Lease Information, such withholding of consent shall be presumptively
reasonable. If Landlord consents to the Sublease or Assignment, Tenant may thereafter enter into
a valid Sublease or Assignment upon the terms and conditions set forth in this Paragraph 9.

          (b) If Tenant desires at any time to enter into an Assignment of this Lease or a Sublease of
the Premises or any portion thereof for which Landlord’s consent is required, it shall first give
written notice to Landlord of its desire to do so, which notice shall contain (i) the name of the
proposed assignee, subtenant or occupant; (ii) the name of the proposed assignee’s, subtenant,
or occupant’s business to be carried on in the Premises; (iii) the terms and provisions of the
proposed Assignment or Sublease; and (iv) such financial information as Landlord may reasonably
request concerning the proposed assignee, subtenant or occupant.

               At any time within fifteen (15) days after Landlord’s receipt of the notice specified in
Paragraph 9(b), Landlord may by written notice to Tenant elect to (i) consent to the Sublease or
Assignment; or (ii) disapprove the Sublease or Assignment. In addition, Landlord may elect to
terminate this Lease as to the portion of the Premises that is specified in such notice, with a
proportionate abatement in Monthly Base Rent and Additional Charges for Expenses and Taxes, if such
notice is with respect to (x) any proposed Assignment, or (y) any proposed Sublease and either (I)
such Sublease has a term (including any renewal or extension options) that either is coterminous
with the Term or expires within the last two years of the Term, or (II) after giving effect to such
Sublease, the original Tenant will occupy less than fifty percent (50%) of the Rentable Area of the
Premises. If Landlord elects to terminate the Lease as to a portion of the Premises pursuant to
the immediately preceding sentence, Tenant shall at all times provide reasonable and appropriate
access to such portion of the Premises and use of any common facilities within the Building.
Promptly after request from Landlord, Tenant shall enter into any amendment to this Lease or other
documentation reasonably requested by Landlord in connection with any such termination of this
Lease as to a portion of the Premises. Failure by Landlord to either consent to or disapprove a
proposed Assignment or Sublease within the fifteen (15) day time period specified above shall be
deemed to be Landlord’s disapproval thereof. At Tenant’s option, Tenant may notify Landlord in
writing if Tenant wishes to Assign or Sublease any portion of the Premises, prior to commencing
negotiations for an Assignment or Sublease with another party, if such Assignment or Sublease would
be subject to Landlord’s termination right provided above (such notice being the “Availability
Notice”), and Landlord shall have the option, by written notice to Tenant within fifteen (15) days
after receiving any Availability Notice, to terminate this Lease with respect to the portion of the
Premises as provided above. If Landlord declines or fails timely to elect to terminate this Lease
with respect to such portion of the Premises, Tenant shall have the right, within one hundred
twenty (120) days after the expiration of such fifteen (15) day period, to enter into an Assignment
or Sublease with respect to the portion of the Premises designated in the Availability Notice,
subject to Landlord’s consent and the other provisions of this Paragraph 9, except that Landlord
shall not have the further right to terminate with respect to such Assignment or Sublease. If
Tenant fails to enter into an Assignment or Sublease within such one hundred twenty (120) day
period, or upon expiration of any Sublease entered into within such one hundred twenty (120) day
period, Landlord’s rights under this Paragraph 9 to terminate the Lease with respect to the portion
of the Premises upon any future proposed Sublease or Assignment shall revive. If Landlord consents
to the Sublease or Assignment within fifteen (15) days after receipt of Tenant’s notice as provided
above, Tenant may thereafter within one hundred twenty (120) days after Landlord’s consent, but not
later than the expiration of said one hundred twenty (120) days, enter into such Assignment or
Sublease of the Premises or portion thereof upon the terms and conditions set forth in the notice
furnished by Tenant to Landlord pursuant to Paragraph 9(b). However, Tenant shall pay to Landlord
seventy-five percent (75%) of any rent or other consideration realized by Tenant under any and all
Subleases in excess of the Monthly Base Rent and Additional Charges payable hereunder (or the
amount thereof proportionate to the portion of the Premises subject to such Sublease(s)),
including, without limitation, any sums paid for the sale or rental of any Alterations, after first
deducting from such excess costs reasonably incurred for tenant improvements installed by Tenant
(commensurate with a standard office build-out) to obtain the Sublease or Assignment in question,
each of which are installed in that portion of the Premises which is the subject of the Sublease or
Assignment and which unamortized costs shall be amortized on a straight line basis (without
interest) over the term of the Sublease or Assignment in equal installments, and after deducting
therefrom any customary brokers’ commissions that Tenant

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has incurred in connection with such Sublease amortized on a straight line basis (without
interest) over the term of the Sublease.

          (c) No consent by Landlord to any Assignment or Sublease by Tenant shall relieve Tenant of
any obligation to be performed by Tenant under this Lease, whether arising before or after the
Assignment or Sublease. The consent by Landlord to any Assignment or Sublease shall not relieve
Tenant from the obligation to obtain Landlord’s express written consent to any other Assignment
or Sublease. Any Assignment or Sublease that is not in compliance with this Paragraph 9 shall be
void and, at the option of Landlord, shall constitute a material Default by Tenant under this
Lease. The acceptance of Monthly Base Rent or Additional Charges by Landlord from a proposed
assignee or sublessee shall not constitute the consent to such Assignment or Sublease by
Landlord.

          (d) The following shall be deemed a voluntary assignment of Tenant’s interest in this Lease:
(i) any dissolution, merger, consolidation, or other reorganization of Tenant; and (ii) if the
capital stock of Tenant is not publicly traded, the sale or transfer of stock possessing more
than fifty percent (50%) of the total combined voting power of all classes of Tenant’s stock
issued, outstanding and entitled to vote for the election of directors. Notwithstanding anything
to the contrary contained in this Paragraph 9, Tenant may enter into any of the following
transfers (a “Permitted Transfer”) without Landlord’s prior written consent: (1) Tenant may
assign its interest in the Lease to a corporation, partnership, limited liability company, or
limited liability partnership (“Transfer Entity”) which results from a merger, consolidation or
other reorganization, so long as the surviving Transfer Entity has a net worth immediately
following such transaction that is equal to or greater than the net worth of Tenant as of the
date immediately prior to such transaction; and (2) Tenant may assign this Lease to a Transfer
Entity which purchases or otherwise acquires all or substantially all of the assets of Tenant, so
long as such acquiring Transfer Entity has a net worth immediately following such transaction
that is equal to or greater than the net worth of Tenant as of the date immediately prior to such
transaction.

          (e) Each assignee pursuant to an Assignment as provided in this Paragraph 9 shall assume all
obligations of Tenant under this Lease, and shall be and remain liable jointly and severally with
Tenant for the payment of Monthly Base Rent and Additional Charges, and for the performance of
all the terms, covenants, conditions and agreements herein contained on Tenant’s part to be
performed for the Term. No Assignment shall be binding on Landlord unless the assignee or Tenant
shall deliver to Landlord a counterpart of the Assignment and an instrument in recordable form
that contains a covenant of assumption by the assignee satisfactory in substance and form to
Landlord, consistent with the requirements of this Paragraph 9(e), but the failure or refusal of
the assignee to execute such instrument of assumption shall not release or discharge the assignee
from its liability as set forth above. Notwithstanding anything to the contrary in this Lease,
no Sublease shall be binding on Landlord unless and until Landlord shall agree in writing
following termination of this Lease to recognize such sublessee and such sublessee agrees in
writing to attorn to Landlord on the terms and conditions of the sublease (including the
obligations under this Lease to the extent that they relate to the portion of the Premises
subleased), and any Sublease entered into by Tenant hereunder shall include an obligation by the
sublessee to so attorn to Landlord if Landlord, in Landlord’s sole discretion, elects to
recognize such Sublease upon any termination of this Lease.

          (f) Tenant shall have the right, without Landlord’s consent and without triggering
Landlord’s rights under Paragraph 9(b), but with written notice to Landlord at least ten (10)
days prior thereto, to enter into an Assignment of Tenant’s interest in the Lease or a Sublease
of all or any portion of the Premises to an Affiliate (as defined below) of Tenant, provided that
(i) in connection with an Assignment that is not a Sublease, the Affiliate delivers to Landlord
concurrent with such Assignment a written notice of the Assignment and an assumption agreement
whereby the Affiliate assumes and agrees to perform, observe and abide by the terms, conditions,
obligations, and provisions of this Lease arising from and after the effective date of the
assignment; and (ii) the assignee or sublessee remains an Affiliate throughout the term of this
Lease (and, in connection with an Assignment that is not a Sublease, the assumption agreement
shall contain provisions consistent with the provisions of this subparagraph allowing Landlord to
terminate this Lease at such time as the entity is no longer an Affiliate of the original
Tenant). If this Lease is assigned or sublet to an Affiliate and thereafter any circumstance
occurs which causes such assignee or sublessee to no longer be an Affiliate of the assigning or
subleasing Tenant, Tenant shall give written notice thereof to Landlord, which notice, to become
effective, shall

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refer to Landlord’s right to terminate this Lease pursuant to this subparagraph, in the
event of an Assignment, or to cause Tenant to terminate the Sublease, in the event of a Sublease
(“Affiliation Termination Notice”). Following occurrence of the circumstance giving rise to the
discontinuation of such assignee or sublessee being an Affiliate (“Affiliate Termination”) of the
assigning or subleasing Tenant, Landlord shall be entitled to terminate this Lease in the event
of an Assignment, or to cause Tenant to terminate the Sublease in the event of a Sublease, unless
Landlord has given its prior written consent to such circumstance, which consent shall not be
unreasonably withheld by Landlord so long as, in the event of an Assignment, such assignee (after
giving effect to such circumstance) has financial strength (as demonstrated by audited financial
statements) equal to or greater than the assigning or subleasing Tenant (including its net worth)
as of the date of execution of this Lease, or the assigning or subleasing Tenant executes a
guaranty in usual form reasonably acceptable to Landlord (however, this does not imply that
Tenant would be released without such guaranty). No Sublease or Assignment by Tenant made
pursuant to this paragraph shall relieve Tenant of Tenant’s obligations under this Lease. As
used in this paragraph, the term “Affiliate” shall mean and collectively refer to a corporation
or other entity which controls, is controlled by or is under common control with Tenant, by means
of an ownership of either (aa) more than fifty percent (50%) of the outstanding voting shares of
stock or partnership or other ownership interests, or (bb) stock, or partnership or other
ownership interests, which provide the right to control the operations, transactions and
activities of the applicable entity.

          10. INSURANCE AND INDEMNIFICATION.

          (a) Except to the extent caused by the negligence or willful misconduct of Tenant Parties or
Tenant’s breach of this Lease, Landlord shall indemnify and hold Tenant harmless from and defend
Tenant against any and all claims or liability for any injury or damage to any person or property
including any reasonable attorney’s fees (but excluding any consequential damages or loss of
business) occurring in, on, or about the Project to the extent such injury or damage is caused by
the gross negligence or willful misconduct of: (i) Landlord; or (ii) Landlord’s agents,
servants, contractors or employees (collectively, together with Landlord, “Landlord Parties”),
provided, however, that in no event shall Landlord be liable to Tenant for any losses arising
from any interruption of Tenant’s business, or for lost profits, or for charges or expenses which
continue but would have been earned if the business had gone on without interruption, or for any
other loss, claim, cost, expense or damage which would be covered by a standard policy of
business interruption insurance, even if such lost profits, charges, expenses, losses, claims,
costs or damages caused by the gross negligence or willful misconduct of Landlord’s agents,
servants, contractors or employees.

          (b) Landlord shall not be liable to Tenant, and Tenant hereby waives all claims against
Landlord Parties for any injury or damage to any person or property in or about the Premises by
or from any cause whatsoever (other than the gross negligence or willful misconduct of Landlord
Parties), and without limiting the generality of the foregoing, whether caused by water leakage
of any character from the roof, walls, basement, or other portion of the Premises or the
Building, or caused by gas, fire, oil, electricity, or any cause whatsoever, in, on, or about the
Premises, the Project or any part thereof (other than that caused by the gross negligence or
willful misconduct of Landlord Parties); provided, however, that in no event shall Landlord be
liable to Tenant for any losses arising from any interruption of Tenant’s business, or for lost
profits, or for charges or expenses which continue but would have been earned if the business had
gone on without interruption, or for any other loss, claim, cost, expense or damage which would
be covered by a standard policy of business interruption insurance, even if caused by the gross
negligence or willful misconduct of Landlord’s agents, servants, contractors or employees.
Tenant acknowledges that any casualty insurance carried by Landlord will not cover loss of income
to Tenant or damage to the Alterations in the Premises installed by Tenant or Tenant’s personal
property located within the Premises (except as provided in Paragraph 10(f) below). Tenant shall
be required to maintain the insurance described in Paragraph 10(d) below during the Term.

          (c) Except to the extent caused by the gross negligence or willful misconduct of Landlord
Parties, Tenant shall indemnify and hold Landlord harmless from and defend Landlord against any
and all claims or liability for any injury or damage to any person or property whatsoever: (i)
occurring in or on the Premises; or (ii) occurring in, on, or about any other portion of the
Project to the extent such injury or damage shall be caused by the negligence or willful
misconduct by the Tenant Parties. Tenant further agrees to indemnify and hold Landlord harmless
from, and defend Landlord against, any and all claims, losses, or liabilities (including damage

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to Landlord’s property) arising from (x) any breach of this Lease by Tenant, (y) any matter
referred to in Paragraph 10(g), and/or (z) the conduct of any work or business of Tenant Parties
in or about the Project, including, but not limited to any release, discharge, storage or use of
any Hazardous Substance. In the event of a discrepancy between the terms of this paragraph and
the terms of Paragraph 41 of the Lease concerning Hazardous Substance liability, the latter shall
control. Notwithstanding the foregoing, however, Tenant shall so indemnify, hold harmless and
defend Landlord with respect to losses arising from any interruption of Tenant’s business, or for
lost profits, or for charges or expenses which continue but would have been earned if the
business had gone on without interruption, or for any other loss, claim, cost, expense or damage
which would be covered by a standard policy of business interruption insurance, even if such
losses resulted from the gross negligence or willful misconduct of Landlord’s agents, servants,
contractors or employees.

          (d) Tenant shall procure at its cost and expense and keep in effect during the Term the
following insurance:

          (i) Commercial general liability insurance on an occurrence form, including contractual
liability, with a minimum combined single limit of liability of Three Million Dollars
($3,000,000). Such insurance shall name Landlord, any Mortgagee, any ground lessor, and
such other parties as Landlord may request as additional insureds, shall specifically
include the liability assumed hereunder by Tenant, and shall provide that it is primary
insurance, and not excess over or contributory with any other valid, existing and applicable
insurance in force for or on behalf of Landlord, and shall provide that Landlord shall
receive thirty (30) days’ written notice from the insurer prior to any cancellation or
change of coverage. The limits of such insurance shall not limit the liability of Tenant
hereunder, and Tenant is responsible for ensuring that the amount of liability insurance
carried by Tenant is sufficient for Tenant’s purposes.

          (ii) Intentionally Omitted;

          (iii) “Special” (also known as “all risk”) property insurance (including, without
limitation, boiler and machinery (if applicable); sprinkler damage, vandalism and malicious
mischief) on all of Tenant’s personal property. Such insurance shall be in an amount equal
to full replacement cost of the aggregate of the foregoing and shall provide coverage
comparable to the coverage in the standard ISO All Risk form, when such form is supplemented
with the coverages required above;

          (iv) Worker’s compensation insurance with limits as may be required by law.

          (v) Such other insurance as may be required by Laws, or by Landlord to the extent it is
commercially reasonable for tenants to be required to carry such other insurance under
similar leases with respect to similar property in similar locations.

Insurance required under this Paragraph 10(d) shall be in companies rated “A“VIII or better in
“Best’s Insurance Guide.” Tenant shall deliver copies of policies of such insurance and
certificates naming the additional insureds thereof to Landlord on or before the Commencement Date,
and thereafter at least ten (10) days before the expiration dates of expiring policies; and, in the
event Tenant shall fail to procure such insurance, or to deliver such policies or certificates,
Landlord may, at its option after written notice to Tenant, procure same for the account of Tenant,
and the cost thereof shall be paid to Landlord as Additional Charges within five (5) days after
delivery to Tenant of bills therefor.

          (e) The provisions of this Paragraph 10 shall survive the expiration or termination of this
Lease with respect to any claims or liability occurring prior to such expiration or termination.

          (f) Landlord shall maintain insurance on the Project, including the Building, and any
Alterations installed in the Premises by Tenant at its expense to the extent Tenant provides
Landlord with all information reasonably required by Landlord or its insurer in connection
therewith (with the entire cost of any such insurance on Alterations to be payable directly by
Tenant to Landlord as an Additional Charge, including the incremental cost to add such insurance
to Landlord’s policies and any deductibles payable with respect to

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such Alterations), against fire and risks covered by “special” coverage (also known as “all
risk”) (excluding earthquake and flood, though Landlord, at its sole option, may include this
coverage) on a 100% of “replacement cost” basis (though reasonable deductibles may be included
under such coverage). Landlord’s insurance shall also have a building ordinance provision and
shall provide for rental interruption insurance covering a period of twelve (12) full months. In
no event shall Landlord be deemed a co-insurer under such policy. Landlord shall also maintain
commercial general liability insurance on an occurrence basis in amounts not less than Three
Million Dollars ($3,000,000) per occurrence with respect to bodily injury or death and property
damage in the Project. Notwithstanding the foregoing obligations of Landlord to carry insurance,
Landlord may modify the foregoing coverages if and to the extent it is commercially reasonable to
do so. Landlord agrees to provide Tenant, upon written request, with certificates of insurance
evidencing the foregoing coverages. Tenant acknowledges that, notwithstanding any provision of
this Paragraph 10(f) or any other provision of this Lease, Landlord currently intends to carry
earthquake insurance on the Project during the Term of this Lease.

          (g) Tenant acknowledges that even if Landlord installs and operates security cameras or
other security equipment and/or provides any other services that could be construed as being
intended to enhance security, Landlord shall have no obligation to Tenant or to any of Tenant’s
Parties for any damage, claim, loss or liability related to any claim that Landlord had a duty to
provide security or that the equipment or services provided by Landlord were inadequate,
inoperative or otherwise failed to provide adequate security. Any such claim made against
Landlord by any employee, customer or invitee of Tenant shall be included within Tenant’s
obligation of indemnity and defense set forth in Paragraph 10(c) above.

          11. WAIVER OF SUBROGATION. Notwithstanding anything to the contrary in this Lease,
the parties hereto release each other (including Landlord Parties and Tenant Parties) and their
respective agents, employees, successors, assignees and subtenants from all liability for injury to
any person or damage to any property that is caused by or results from a risk (i) which is actually
insured against, to the extent of receipt of payment under such policy (unless the failure to
receive payment under any such policy results from a failure of the insured party to comply with or
observe the terms and conditions of the insurance policy covering such liability, in which event,
such release shall not be so limited), (ii) which is required to be insured against under this
Lease, without regard to the negligence or willful misconduct of the entity so released, or (iii)
which would normally be covered by the standard form of “special” or “all risk” coverage property
insurance. Landlord and Tenant shall each obtain from their respective insurers under all policies
of fire, theft, and other property insurance maintained by either of them at any time during the
Term insuring or covering the Building, the Premises, or the Project or any portion thereof of its
contents therein, a waiver of all rights of subrogation which the insurer of one party might
otherwise, if at all, have against the other party and Landlord and Tenant shall each indemnify the
other against any loss or expense, including reasonable attorneys’ fees, resulting from the failure
to obtain such waiver.

          12. SERVICES AND UTILITIES.

          (a) Landlord shall provide the maintenance and repairs described in Paragraph 7(a), except
for damage occasioned by the act or omission of Tenant or for which Tenant is responsible
pursuant to Paragraph 10(c), which damage shall be repaired by Landlord at Tenant’s expense.

          (b) Subject to the provisions elsewhere herein contained and to the Rules and Regulations,
Tenant shall be responsible for arranging for, and direct payment of any and all cost of, garbage
pickup, recycling, janitorial, security, transportation management programs, water, electricity,
gas, telephone, cable and digital services, and Tenant shall provide the maintenance, repair and
replacement of Building Systems in connection with such utilities and services, and Tenant shall
provide the maintenance, repair and services as described in Paragraph 7(b). Landlord shall
cooperate with Tenant’s efforts to arrange all such services. If Landlord assumes Tenant’s
maintenance obligations with respect to the Building Systems pursuant to Paragraph 7(e), Tenant
shall cooperate fully with Landlord and abide by all the reasonable regulations and requirements
that Landlord may prescribe for the proper functioning and protection of the Building Systems.

          (c) Tenant will not without the written consent of Landlord, which consent shall not be
unreasonably withheld or delayed, use any apparatus or device in the Premises which, when used,
puts an excessive load on the Building or its structure or systems, including, without
limitation, electronic data

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processing machines, punch card machines and machines using excess lighting or voltage in
excess of the amount for which the Building is designed.

          (d) Landlord shall not be in default hereunder, nor be deemed to have evicted Tenant, nor be
liable for any damages directly or indirectly resulting from, nor shall the rental herein
reserved be abated, except as expressly provided for in the last sentence of this paragraph, by
reason of (i) the installation, use or interruption of use of any equipment in connection with
the foregoing utilities and services; (ii) failure to furnish or delay in furnishing any services
to be provided by Landlord when such failure or delay is caused by Acts of God or the elements,
labor disturbances of any character, any other accidents or other conditions beyond the
reasonable control of Landlord, or by the making of repairs or improvements to the Premises or to
the Building (except in the case of Landlord’s gross negligence or willful misconduct); or (iii)
the limitation, curtailment, rationing or restriction on use of water or electricity, gas or any
other form of energy or any other service or utility whatsoever serving the Premises or the
Project. Furthermore, Landlord shall be entitled to cooperate with the mandatory requirements of
national, state or local governmental agencies or utilities suppliers in connection with reducing
energy or other resources consumption. If the Premises become unsuitable for Tenant’s use as a
consequence of cessation of gas and electric utilities or other services provided to the Premises
resulting from a casualty covered by Landlord’s insurance, then Tenant’s Monthly Base Rent and
Additional Charges shall abate during the period of time in which Tenant cannot occupy the
Premises for the Permitted Uses, but only to the extent of rental abatement insurance proceeds
received by Landlord.

          13. TENANT’S CERTIFICATES. Tenant, at any time and from time to time, within ten (10)
days from receipt of written notice from Landlord, will execute, acknowledge and deliver to
Landlord and, at Landlord’s request, to any prospective tenant, purchaser, ground or underlying
lessor or mortgagee of any part of the Project any other party acquiring an interest in Landlord, a
certificate of Tenant substantially in the form attached as EXHIBIT E and also containing
any other information that may reasonably be required by any of such persons. It is intended that
any such certificate of Tenant delivered pursuant to this Paragraph 13 may be relied upon by
Landlord and any prospective tenant, purchaser, ground or underlying lessor or mortgagee of any
part of the Project, or such other party.

          14. HOLDING OVER. If Tenant (directly or through any successor-in-interest of Tenant)
remains in possession of all or any portion of the Premises after the expiration of the Term or the
termination of this Lease with the written consent of Landlord, such continued possession shall be
construed to be a tenancy from month to month at one hundred twenty-five percent (125%) of the
Monthly Base Rent payable in the last full month prior to such termination or expiration (and shall
be increased in accordance with Paragraph 3(b)), together with an amount estimated by Landlord for
the monthly Additional Charges for Expenses and Taxes payable under this Lease, and shall otherwise
be on the terms and conditions herein specified so far as applicable. If Tenant (directly or
through any successor-in-interest of Tenant) remains in possession of all or any portion of the
Premises after the expiration of the Term or the termination of this Lease without the written
consent of Landlord, Tenant’s continued possession shall be on the basis of a tenancy at the
sufferance of Landlord. In such event, Tenant shall continue to comply with or perform all the
terms and obligations of Tenant under this Lease, except that the Monthly Base Rent during Tenant’s
holding over shall be the greater of the then-fair market rent for the Premises (as reasonably
determined by Landlord) or one hundred fifty percent (150%) of the Monthly Base Rent and Additional
Charges for Expenses and Taxes payable in the last full month prior to the termination or
expiration of this Lease (and shall be increased in accordance with Paragraph 3(b). In addition to
Rent, Tenant shall pay Landlord for all damages proximately caused by reason of the Tenant’s
retention of possession. Landlord’s acceptance of Rent after the expiration of the Term or
termination of the Term of this Lease shall not constitute a renewal of this Lease, and nothing
contained in this provision shall be deemed to waive Landlord’s right of re-entry or any other
right hereunder or at law. Tenant acknowledges that, in Landlord’s marketing and re-leasing
efforts for the Premises, Landlord is relying on Tenant’s vacation of the Premises on the
Expiration Date. Accordingly, Tenant shall indemnify, defend and hold Landlord harmless from and
against all claims, liabilities, losses, costs, expenses and damages arising or resulting directly
or indirectly from Tenant’s failure to timely surrender the Premises, including (i) any loss, cost
or damages suffered by any prospective tenant of all or any part of the Premises, and (ii)
Landlord’s damages as a result of such prospective tenant rescinding or refusing to enter into the
prospective lease of all or any portion of the Premises by reason of such failure of Tenant to
timely surrender the Premises.

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     15. SUBORDINATION. Without the necessity of any additional document being executed by
Tenant for the purpose of effecting a subordination, this Lease shall be subject and subordinate at
all times to: (i) all ground leases or underlying leases which may now exist or hereafter be
executed affecting all or any portion of the Project, (ii) any CC&Rs (including without limitation
the CC&Rs described in EXHIBIT C), and (iii) the lien of any mortgage or deed of trust
which may now exist or hereafter be executed in any amount for which all or any portion of the
Project, ground leases or underlying leases, or Landlord’s interest or estate in any of said items,
is specified as security (any of the foregoing, a “Mortgage”, and the beneficiary or mortgagee
under any of the foregoing, a “Mortgagee”). Notwithstanding the foregoing, Landlord shall have the
right to subordinate or cause to be subordinated any such ground leases or underlying leases or any
such Mortgages to this Lease. In the event that any ground lease or underlying lease terminates
for any reason or any Mortgage is foreclosed or a conveyance in lieu of foreclosure is made for any
reason, Tenant shall, notwithstanding any subordination, attorn to and become the Tenant of the
successor in interest to Landlord at the option of such successor in interest. Notwithstanding
anything to the contrary contained herein, this Lease shall not be subject or subordinate to any
ground or underlying lease or to any Mortgage, unless the ground lessor or Mortgagee executes a
reasonable recognition and non-disturbance agreement which provides that Tenant shall be entitled
to continue in possession of the Premises on the terms and conditions of this Lease if and for so
long as Tenant fully performs all of its obligations hereunder. Landlord and Tenant covenant and
agree to cooperate in efforts to obtain a mutually acceptable form of subordination,
non-disturbance and attornment agreement from Landlord’s current Mortgagee, and Tenant covenants
and agrees to execute and deliver upon demand by Landlord and in the form requested by Landlord and
reasonably acceptable to Tenant (Tenant has approved the form of the subordination, non-disturbance
and attornment agreement attached as EXHIBIT F, without limiting Tenant’s future approval
of any additional or substitute form), any customary additional documents evidencing the priority
or subordination of this Lease with respect to any such ground leases or underlying leases or the
lien of any such Mortgage. Tenant shall execute, deliver and record any such documents within ten
(10) days after Landlord’s written request.

     16. RULES AND REGULATIONS. Tenant shall faithfully observe and comply with the rules
and regulations attached to this Lease as EXHIBIT D and all reasonable modifications
thereof and additions thereto from time to time put into effect by Landlord. Landlord shall not be
responsible for the nonperformance by any other Tenant or occupant of the Building or the Project
of any said rules and regulations. In the event of an express and direct conflict between the
terms, covenants, agreements and conditions of this Lease and those set forth in the rules and
regulations, as modified and amended from time to time by Landlord, this Lease shall control.

     17. RE-ENTRY BY LANDLORD. Landlord reserves and shall at all reasonable times, upon
reasonable prior notice (except in the case of an emergency), and subject to Tenant’s reasonable
security precautions and the right of Tenant to accompany Landlord at all times, have the right to
re-enter the Premises to inspect the same, to supply janitor service and any other service to be
provided by Landlord to Tenant hereunder (unless Tenant is supplying such service), to show the
Premises to prospective purchasers, Mortgagees or tenants (as to prospective tenants, only during
the last twelve (12) months of the Term), to post notices of nonresponsibility or as otherwise
required or allowed by this Lease or by law, and to alter, improve or repair the Premises and any
portion of the Building and may for that purpose erect, use, and maintain scaffolding, pipes,
conduits, and other necessary structures in and through the Premises where reasonably required by
the character of the work to be performed. Landlord shall not be liable in any manner for any
inconvenience, disturbance, loss of business, nuisance or other damage arising from Landlord’s
entry and acts pursuant to this paragraph and Tenant shall not be entitled to an abatement or
reduction of Monthly Base Rent or Additional Charges if Landlord exercises any rights reserved in
this paragraph. Tenant hereby waives any claim for damages for any injury or inconvenience to or
interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises, and
any other loss occasioned thereby, except to the extent caused by Landlord’s gross negligence or
willful misconduct. For each of the aforesaid purposes, Landlord shall at all times have and
retain a key with which to unlock all of the doors in, upon and about the Premises, excluding
Tenant’s vaults and safes, or special security areas (designated in advance), and Landlord shall
have the right to use any and all means which Landlord may deem necessary or proper to open said
doors in an emergency, in order to obtain entry to any portion of the Premises, and any entry to
the Premises, or portion thereof obtained by Landlord by any of said means, or otherwise, shall not
under any emergency 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 portions thereof. Landlord shall use commercially reasonable

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efforts during re-entry to not unreasonably interfere with Tenant’s use of the Premises or its
business conducted therein.

          18. INSOLVENCY OR BANKRUPTCY. The appointment of a receiver to take possession of all
or substantially all of the assets of Tenant, or an assignment of Tenant for the benefit of
creditors, or any action taken or suffered by Tenant under any insolvency, bankruptcy,
reorganization or other debtor relief proceedings, whether now existing or hereafter amended or
enacted, shall at Landlord’s option constitute a breach of this Lease by Tenant (provided that,
with respect to a petition in bankruptcy, or receiver attachment, or other remedy pursued by a
third party, such event shall not constitute a breach of this Lease so long as it is discharged
within sixty (60) days). Upon the happening of any such event or at any time thereafter, this
Lease shall terminate five (5) days after written notice of termination from Landlord to Tenant.
In no event shall this Lease be assigned or assignable by operation of law or by voluntary or
involuntary bankruptcy proceedings or otherwise and in no event shall this Lease or any rights or
privileges hereunder be an asset of Tenant under any bankruptcy, insolvency, reorganization or
other debtor relief proceedings.

          19. DEFAULT.

          (a) 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 (which notice shall be in lieu of and not in addition to the notice
required by Section 1161 of the California Code of Civil Procedure) within which to cure any
failure to pay Monthly Base Rent or Additional Charges; provided, however, that Landlord shall
not be required to provide such notice more than two (2) times during any two (2) year period
during the Term with respect to non-payment of Monthly Base Rent or Additional Charges, the third
such non-payment constituting Default without requirement of notice. Tenant shall have a period
of thirty (30) days from the date of receipt of written notice from Landlord within which to cure
any other Default under this Lease; provided, however, that with respect to any curable Default
other than the payment of Monthly Base Rent or Additional Charges that cannot reasonably be cured
within thirty (30) days, the cure period shall be extended for an additional period of time
reasonably required to cause such cure if Tenant commences to cure within thirty (30) days from
Landlord’s notice and continues to prosecute diligently the curing thereof, provided that such
cure period shall in no event extend beyond ninety (90) days after Landlord’s notice.
Notwithstanding the foregoing, (i) if a different cure period is specified elsewhere in this
Lease with respect to any specific obligation of Tenant, such specific cure period shall apply
with respect to a failure of such obligation in lieu of, and not in addition to, the cure period
provided in this Paragraph 19(a); and (ii) the cure periods specified in Paragraphs 7(e) and 23
shall apply with respect to Landlord’s rights to cure Tenant’s failure to perform pursuant to
Paragraphs 7(e) and 23, respectively. Upon a 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:

          (i) The rights and remedies provided 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 Monthly Base Rent and Additional Charges for the balance of the Term after
the time of award exceeds the amount of rental loss for the same period that the Tenant
proves could be reasonably avoided, as computed pursuant to subsection (b) of said Section
1951.2;

          (ii) The rights and remedies provided by California Civil Code, Section 1951.4, that
allows Landlord to continue this Lease in effect and to enforce all of its rights and
remedies under this Lease, including the right to recover Monthly Base Rent and Additional
Charges as they become due, for so long as Landlord does not terminate Tenant’s right to
possession; provided, however, if Landlord elects to exercise its remedies described in this
Paragraph 19(a)(ii) and Landlord does not terminate this Lease, and if Tenant requests
Landlord’s consent to an assignment of this Lease or a sublease of the Premises at such time
as Tenant is in Default, Landlord shall not unreasonably withhold its consent to such
assignment or sublease. Acts of maintenance or preservation, efforts 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 rights to possession;

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

          (iv) If Landlord elects to terminate this Lease, the right and power to enter the
Premises and remove therefrom all persons and property and, 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.

          (b) Landlord shall have a period of thirty (30) days from the date of written notice from
Tenant within which to cure any default of Landlord under this Lease; provided, however, that
with respect to any default that cannot reasonably be cured within thirty (30) days, the default
shall not be deemed to be uncured if Landlord commences to cure within thirty (30) days from
Tenant’s notice and continues to prosecute diligently the curing thereof. Tenant agrees to
deliver to any Mortgagee a copy of any Notice of Default served upon the Landlord in the manner
prescribed by Paragraph 26 hereof, provided that prior to such notice Tenant has been notified in
writing (by way of Notice of Assignment of Rents and Leases, or otherwise) of the address of such
Mortgagee. Tenant further agrees that if Landlord shall have failed to cure such default within
the time provided for in this Lease, then the Mortgagee shall have an additional thirty (30) days
(provided that Tenant notifies Mortgagee concurrently with Tenant’s notice to Landlord at the
beginning of Landlord’s thirty (30) day period; otherwise Mortgagee shall have sixty (60) days
from the date on which it is noticed) within which to cure such default or if such default cannot
be cured within that time, then such additional time as may be reasonably necessary to cure such
default shall be granted if within such applicable period Mortgagee has commenced and is
diligently pursuing the remedies necessary to cure such default (including, but not limited to,
commencement of foreclosure proceedings, if necessary to effect such cure), in which event the
Lease shall not be terminated while such remedies are being so diligently pursued.

          20. DAMAGE BY FIRE, ETC.

          (a) Restoration or Termination. If the Premises or the Building are damaged by fire or
other casualty, Landlord shall forthwith repair the same, provided that such repairs can be made
within one hundred eighty (180) days after the date of such damage under the laws and regulations
of the federal, state and local governmental authorities having jurisdiction thereof. In such
event, this Lease shall remain in full force and effect except that Tenant shall be entitled to a
proportionate reduction of Monthly Base Rent and Additional Charges while such repairs to be made
hereunder by Landlord are being made. Such reduction of Monthly Base Rent and Additional
Charges, if any, shall be based upon the greater of (i) the proportion that the area of the
Premises rendered untenantable by such damage bears to the total area of the Premises; or (ii)
the extent to which such damage and the making of such repairs by Landlord shall interfere with
the business carried on by Tenant in the Premises, and shall be limited to the extent of rental
abatement insurance proceeds actually received by Landlord under Landlord’s casualty insurance
policy. Within thirty (30) days after the date of such damage, Landlord shall notify Tenant
whether or not in Landlord’s reasonable opinion such repairs can be made within one hundred
eighty (180) days after the date of such damage and Landlord’s reasonable estimate of the time
needed for such repairs. If such repairs cannot be made within one hundred eighty (180) days
from the date of such damage, Landlord shall within thirty (30) days after the date of such
damage elect either to: (i) notify Tenant of Landlord’s intention to repair such damage and
diligently prosecute such repairs, in which event this Lease shall continue in full force and
effect and the Monthly Base Rent and Additional Charges shall be reduced as provided herein; or
(ii) notify Tenant of Landlord’s election to terminate this Lease as of a date specified in such
notice, which date shall not be less than thirty (30) days nor more than sixty (60) days after
such notice is given and this Lease shall terminate on the date specified in such notice. If
Landlord notifies Tenant that restoration or repair of the Premises will take more than one
hundred eighty (180) days, Tenant shall have a right to terminate the Lease within fifteen (15)
days following receipt of Landlord’s notice, by providing Landlord with written notice of its
election to do so. In such event (and also in the event Landlord terminates the Lease pursuant
to the immediately preceding sentence), Tenant shall have no liability for payment of the
deductible under Landlord’s insurance relating to such damage. In case of termination by either
event, the Monthly Base Rent and Additional Charges shall be reduced by a proportionate amount
based upon the extent to which such damage interfered with the business carried on by Tenant in
the Premises, and Tenant shall pay such reduced Monthly Base Rent and Additional Charges up to
the date of termination. Landlord agrees to refund to Tenant

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any Monthly Base Rent and Additional Charges previously paid for any period of time
subsequent to such date of termination. The repairs to be made hereunder by Landlord shall not
include, and Landlord shall not be required to repair, any damage by fire or other cause to the
property of Tenant or any repairs or replacements of any paneling, decorations, railings, floor
coverings or any alterations, additions, fixtures or improvements installed on the Premises by or
at the expense of Tenant; provided, however, that to the extent Landlord’s insurance policies
cover any Alterations pursuant to Paragraph 10(f), Landlord shall make available to Tenant any
available insurance proceeds with respect to any damage or destruction that affects such
Alterations, after deducting therefrom the cost, if any, to Landlord for the recovery of such
proceeds and/or of any repair to the Building or Premises or Project for which Landlord is
responsible hereunder, in order for Tenant to repair and restore such Alterations, pursuant to
disbursement procedures established by Landlord and/or any Mortgagee. Tenant hereby waives the
provisions of Section 1932.2, and Section 1933.4, of the Civil Code of California.
Notwithstanding anything contained herein to the contrary, if a Major Casualty (as defined below)
occurs with respect to any portion of the Building, and the net insurance proceeds obtained as a
result of such casualty are ninety percent (90%) or a lesser percentage of the cost of
restoration, rebuilding or replacement, then Landlord shall not be obligated to undertake such
restoration, rebuilding or replacement unless Landlord elects to do so in writing, provided that
Landlord’s election not to restore shall be deemed Landlord’s election to terminate. For the
purpose of this Lease, a “Major Casualty” shall mean a casualty that renders unusable twenty
percent (20%) or more of the Net Rentable Area of the Building or which materially adversely
affects the use of such Building.

          (b) Casualty at End of Term. Notwithstanding anything to the contrary contained in this
Lease, if during the twelve (12) months prior to the expiration of the Term, either of the
Building or a substantial portion thereof are damaged or destroyed by fire or other casualty,
either Tenant or Landlord shall have the option to terminate this Lease as of the date of such
damage or destruction by written notice to the other party given within thirty (30) days after
such damage or destruction, in which event Landlord shall make a proportionate refund to Tenant
of such Rent as may have been paid in advance. For purposes of this paragraph, a “substantial
portion” shall mean fifty percent (50%) of the Building.

          (c) Uninsured Casualty. Notwithstanding Paragraph 20(a), and subject to the termination
right in Paragraph 20(b), in the event of a total or partial destruction of the Premises (i) by a
casualty of a type not required to be insured against by Landlord under the terms of this Lease,
or (ii) under circumstances where Landlord has been required by any Mortgagee to utilize
substantially all of the insurance proceeds to pay down the Mortgage, which destruction exceeds
five percent (5%) of the replacement cost of the Building, this Lease shall automatically
terminate, unless (x) Landlord elects to reconstruct the Building, and (y) the damage can be
reconstructed within one hundred eighty (180) days after the date of such damage. If Landlord
elects to reconstruct, the cost incurred by Landlord for such reconstruction shall be amortized
over the useful life of the Building and such amortization shall be reimbursed by Tenant to
Landlord as an Additional Charge together with interest at the Default Rate; provided, however,
that Tenant shall not be obligated to pay for any portion of the useful life of the Building
which extends beyond the Expiration Date.

          21. EMINENT DOMAIN. If any part over fifteen percent (15%) of the Premises shall be
taken or appropriated under the power of eminent domain or conveyed in lieu thereof, Tenant shall
have the right to terminate this Lease at its option. In such event, Landlord shall receive (and
Tenant shall assign to Landlord upon demand from Landlord) any income, rent, award or any interest
therein which may be paid in connection with the exercise of such power of eminent domain, and
Tenant shall have no claim against Landlord for any part of sum paid by virtue of such proceedings,
whether or not attributable to the value of the unexpired term of this Lease except that Tenant
shall be entitled to petition the condemning authority for the following: (i) the then unamortized
cost of any Alterations paid for by Tenant from its own funds (as opposed to any allowance,
including the TI Allowance, provided by Landlord); (ii) the value of Tenant’s trade fixtures; (iii)
Tenant’s relocation costs; and (iv) Tenant’s goodwill, loss of business and business interruption.
If a part of the Premises shall be so taken or appropriated or conveyed and neither party hereto
shall elect to terminate this Lease and the Premises have been damaged as a consequence of such
partial taking or appropriation or conveyance, Landlord shall restore the Premises continuing under
this Lease at Landlord’s cost and expense; provided, however, that Landlord shall not be required
to repair or restore any injury or damage to the property of Tenant or to make any repairs or
restoration of any Alterations installed on the Premises by or at the expense of Tenant.
Thereafter, the Monthly Base Rent and Additional Charges to be paid under this Lease for the
remainder of the Term shall be proportionately reduced, such

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that thereafter the amounts to be paid by Tenant shall be in the ratio that they are of the
portion of the Premises not so taken bears to the total area of the Premises prior to such taking.
Notwithstanding anything to the contrary contained in this Paragraph 21, if the temporary use or
occupancy of any part of the Premises shall be taken or appropriated under power of eminent domain
during the Term, this Lease shall be and remain unaffected by such taking or appropriation and
Tenant shall continue to pay in full all Monthly Base Rent and Additional Charges payable hereunder
by Tenant during the Term. In the event of any such temporary appropriation or taking, Tenant
shall be entitled to receive that portion of any award which represents compensation for the use of
or occupancy of the Premises during the Term, and Landlord shall be entitled to receive that
portion of any award which represents the cost of restoration of the Premises and the use and
occupancy of the Premises after the end of the Term. If such temporary taking is for a period
longer than two hundred and seventy (270) days and unreasonably interferes with Tenant’s use of the
Premises or the Common Area, then Tenant shall have the right to terminate the Lease. Landlord and
Tenant understand and agree that the provisions of this Paragraph 21 are intended to govern fully
the rights and obligations of the parties in the event of a Taking of all or any portion of the
Premises. Accordingly, the parties each hereby waives any right to terminate this Lease in whole
or in part under Sections 1265.120 and 1265.130 of the California Code of Civil Procedure or under
any similar Law now or hereafter in effect.

          22. SALE BY LANDLORD. If Landlord sells or otherwise conveys its interest in the
Premises, Landlord shall be relieved of its obligations under the Lease from and after the date of
sale or conveyance (including the obligations of Landlord under Paragraph 41), only when the
successor assumes in writing the obligations to be performed by Landlord on and after the effective
date of the transfer, whereupon Tenant shall attorn to such successor.

          23. RIGHT OF LANDLORD TO PERFORM. All covenants and agreements to be performed by
Tenant under any of the terms of this Lease shall be performed by Tenant at Tenant’s sole cost and
expense and without any abatement of Monthly Base Rent or Additional Charges. If Tenant shall
default in the payment of any sum of money, other than Monthly Base Rent or Additional Charges,
required to be paid by it hereunder or shall fail to perform any other act on its part to be
performed hereunder (including, without limitation, Tenant’s obligation to maintain and repair the
Premises and Building Systems pursuant to Paragraph 7(b)), and either (i) such failure continues,
and Tenant does not commence cure of such failure, for ten (10) days after notice thereof by
Landlord as provided in Paragraph 19(a) (except in the event of emergency, when no cure period
shall be required but Landlord shall make reasonable good faith efforts to notify Tenant prior to
commencing such emergency cure), or (ii) having commenced such cure Tenant does not diligently
prosecute the curing thereof, or (iii) if Landlord is, in Landlord’s reasonable business judgment,
in a better position to accomplish such cure or can accomplish such cure in a more efficient or
cost-effective manner than Tenant, or (iv) if a default under any Mortgage is, in Landlord’s
reasonable judgment, likely to occur due to Tenant’s failure to cure such failure in a timely
manner, then in any such situation Landlord may, but shall not be obligated so to do, and without
waiving or releasing Tenant from any obligations of Tenant, make any such payment or perform any
such act on Tenant’s part to be made or performed as provided in this Lease. All sums so paid and
costs so incurred by Landlord, together with interest thereon at the Default Rate from the date
Landlord makes such payment or incurs such cost, shall be payable as Additional Charges to Landlord
within thirty (30) days after receipt by Tenant of a bill or statement therefor.

          24. SURRENDER OF PREMISES.

          (a) At the end of the Term or any renewal thereof or other sooner termination of this Lease,
Tenant will peaceably deliver to Landlord possession of the Premises, together with all
improvements or additions upon or belonging to Landlord , by whomsoever made, in substantially
the same condition as received, or first installed, subject to the terms of Paragraphs 6, 21 and
41, subject to normal wear and tear and the rights and obligations of Tenant concerning casualty
damage pursuant to Paragraph 20. Tenant may, upon the termination of this Lease, remove all
movable furniture and equipment belonging to Tenant, at Tenant’s sole cost, provided that Tenant
repairs any damage caused by such removal. Property not so removed by the Expiration Date (or in
the event of an earlier termination, within five (5) days of such earlier termination date) shall
be deemed abandoned by Tenant, and title to the same shall thereupon pass to Landlord. Upon such
expiration or sooner termination of the Term, Tenant shall upon demand by Landlord, at Landlord’s
election either (i) at Tenant’s sole cost and expense, forthwith and with all due diligence
remove any Alterations made by or for the account of Tenant, designated by Landlord to be removed
(provided, however, that upon the written

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request of Tenant prior to installation of such Alterations, Landlord shall advise Tenant at
that time whether or not such Alterations must be removed upon the expiration or sooner
termination of this Lease), and restore the Premises to its original condition as of the Delivery
Date, subject to the foregoing; or (ii) pay Landlord the reasonable estimated cost thereof.

          (b) The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation
thereof, shall not work a merger, and shall, at the option of Landlord, terminate all or any
existing subleases or subtenancies, or may, at the option of Landlord, operate as an assignment
to it of any or all such subleases or subtenancies.

          25. WAIVER. If either Landlord or Tenant waives the performance of any term, covenant
or condition contained in this Lease, such waiver shall not be deemed to be a waiver of any
subsequent breach of the same or any other term, covenant or condition contained herein.
Furthermore, the acceptance of Rent or Additional Charges by Landlord shall not constitute a waiver
of any preceding breach by Tenant of any term, covenant or condition of this Lease, regardless of
Landlord’s knowledge of such preceding breach at the time Landlord accepted such Monthly Base Rent
or Additional Charges. Failure by Landlord to enforce any of the terms, covenants or conditions of
this Lease for any length of time shall not be deemed to waive or to decrease the right of Landlord
to insist thereafter upon strict performance by Tenant. Waiver by Landlord of any term, covenant
or condition contained in this Lease may only be made by a written document signed by Landlord.

          26. NOTICES. Except as otherwise expressly provided in this Lease, any bills,
statements, notices, demands, requests or other communications given or required to be given under
this Lease shall be effective only if rendered or given in writing, sent by certified mail, return
receipt requested, reputable overnight carrier, or delivered personally, (i) to Tenant (A) at
Tenant’s address set forth in the Basic Lease Information, if sent prior to Tenant’s taking
possession of the Premises, or (B) at the Premises if sent subsequent to Tenant’s taking possession
of the Premises, or (C) at any place where Tenant may be found if sent subsequent to Tenant’s
vacating, deserting, abandoning or surrendering the Premises; or (ii) to Landlord at Landlord’s
address set forth in the Basic Lease Information; or (iii) to such other address as either Landlord
or Tenant may designate as its new address for such purpose by notice given to the other in
accordance with the provisions of this Paragraph 26. Any such bill, statement, notice, demand,
request or other communication shall be deemed to have been rendered or given on the date the
return receipt indicates delivery of or refusal of delivery if sent by certified mail, the day upon
which recipient accepts and signs for delivery from a reputable overnight carrier, or on the date a
reputable overnight carrier indicates refusal of delivery, or upon the date personal delivery is
made. If Tenant is notified in writing of the identity and address of any Mortgagee or ground or
underlying lessor, Tenant shall give to such Mortgagee or ground or underlying lessor notice of any
Default by Landlord under the terms of this Lease in writing sent by registered or certified mail,
and such Mortgagee or ground or underlying lessor shall be given the opportunity to cure such
Default (as defined in Paragraph 19(a)) prior to Tenant exercising any remedy available to it.

          27. TAXES PAYABLE BY TENANT. Prior to delinquency Tenant shall pay all taxes levied
or assessed upon Tenant’s equipment, furniture, fixtures and other personal property located in or
about the Premises. If the assessed value of Landlord’s property is increased by the inclusion
therein of a value placed upon Tenant’s equipment, furniture, fixtures or other personal property,
Tenant shall pay to Landlord, upon written demand, the taxes so levied against Landlord, or the
proportion thereof resulting from said increase in assessment.

          28. ABANDONMENT. Tenant shall not abandon the Premises and cease performing its
financial and maintenance obligations under this Lease at any time during the Term, and if Tenant
shall abandon and cease performing its financial and maintenance obligations under this Lease, or
surrender the Premises or be dispossessed by process of law, or otherwise, any personal property
belonging to Tenant and left on the Premises shall, at the option of Landlord, be deemed to be
abandoned and title thereto shall thereupon pass to Landlord. Notwithstanding anything to the
contrary contained herein, Tenant shall not be allowed to vacate the Premises for any period of
time unless either (a) such vacation would not result in a termination of, limitation on, or other
adverse effect on, Landlord’s insurance policies, or (b) Tenant pays the incremental premium costs,
and assumes responsibility for any increased deductible amounts, to the extent required to cause
Landlord’s insurance policies to not be terminated, limited or adversely affected as a result of
such vacation. For purposes of this Paragraph 28, the Tenant shall not be deemed to have abandoned
the Premises solely because the Tenant is not occupying the Premises.

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     29. SUCCESSORS AND ASSIGNS. Subject to the provisions of Paragraph 9, the terms,
covenants and conditions contained herein shall be binding upon and inure to the benefit of the
parties hereto and their respective legal and personal representatives, successors and assigns.

     30. ATTORNEY’S FEES. If Tenant or Landlord brings any action for any relief against
the other, declaratory or otherwise, arising out of this Lease, including any suit by Landlord for
the recovery of Rent or possession of the Premises, the losing party shall pay to the prevailing
party a reasonable sum for attorney’s fees and costs, which shall be deemed to have accrued on the
commencement of such action and shall be paid whether or not the action is prosecuted to judgment.

     31. LIGHT AND AIR. Tenant covenants and agrees that no diminution of light, air or
view by any structure which may hereafter be lawfully erected (whether or not by Landlord) shall
entitle Tenant to any reduction of rent under this Lease, result in any liability of Landlord to
Tenant, or in any other way affect this Lease or Tenant’s obligations hereunder. Landlord has
informed Tenant that it has no intention of constructing additional facilities at the Project
except those facilities needed to service the Project.

     32. SECURITY DEPOSIT. Concurrently with execution hereof, Tenant has paid to Landlord
the Security Deposit specified in the Basic Lease Information as security for the full and faithful
performance of Tenant’s obligations under this Lease. If Tenant fails to pay Monthly Base Rent,
Additional Charges for Expenses and Taxes, or other Rent or charges due hereunder, or otherwise
Defaults with respect to any provision of this Lease, Landlord may use all or any portion of the
Security Deposit for the payment of any Rent due hereunder, to pay any other sum to which Landlord
may become obligated by reason of Tenant’s Default, or to compensate Landlord for any loss or
damages which Landlord may suffer as a result of such Default (including, without limitation,
amounts which Landlord may be entitled to recover pursuant to Section 1951.2 of the California
Civil Code). Landlord may in its sole discretion (but shall not be required to) use the Security
Deposit or any portion thereof to cure any failure by Tenant to perform any of its obligations
hereunder or to compensate Landlord for any damages Landlord incurs as a result of Tenant’s failure
to perform any of its covenants or obligations hereunder, it being understood that any use of the
Security Deposit shall not constitute a bar or defense to any of Landlord’s remedies under this
Lease or at law. Upon application of any part of the Security Deposit by Landlord, Landlord may,
at its election, inform Tenant in writing of the amount applied and request that Tenant pay to
Landlord a sum sufficient to return the Security Deposit to one hundred ten percent (110%) of the
amount specified in the Basic Lease Information as the same may have been increased by prior
applications of this Paragraph 32. Within five (5) business days of the receipt by Tenant of such
a notice from Landlord, Tenant shall pay to Landlord in cash or immediately available funds the sum
so requested, and the sum so paid by Tenant shall be held by Landlord as a part of the Security
Deposit. Tenant’s failure to make such payment within such time period shall constitute a Default
under this Lease without the necessity of further notice or opportunity to cure, and shall accrue
interest at the Default Rate pursuant to Paragraph 3(d) of the Lease. Tenant hereby acknowledges
that attachment will be a proper remedy by which Landlord may seek to recover the amount that
Tenant has then failed to pay. Upon expiration of the Term or earlier termination of this Lease,
any portion of the Security Deposit then held by Landlord shall be returned to Tenant, reduced by
those amounts that may be required by Landlord to remedy Defaults on the part of Tenant in the
payment of rent, to repair damages to the Premises caused by Tenant and to clean the Premises;
provided, however, that (i) Landlord shall not be obligated to return the Security Deposit or any
part thereof until all breaches by Tenant of its obligations under this Lease have been cured and
all damages which Landlord may suffer in connection with any such breach have been ascertained in
amount and paid in full; and (ii) in no event shall any such return be construed as an admission by
Landlord that Tenant has performed all of its covenants and obligations hereunder. Landlord shall
have no obligation to segregate the Security Deposit from its general funds or to pay interest
thereon. If Landlord conveys or transfers its interest in the Leased Premises, and as a part of
such conveyance or transfer, assigns its interest in this Lease and Security Deposit, or any
portion thereof not previously applied, the Security Deposit shall be transferred to Landlord’s
successor and Landlord shall be released and discharged from any further liability to Tenant with
respect to such Security Deposit. In no event shall any mortgagee or beneficiary under a mortgage
or deed of trust encumbering all or any portion of the Project, or any purchaser of all or any
portion of the Project at a public or private foreclosure sale under such mortgage or deed of
trust, have any liability or obligation whatsoever to Tenant or Tenant’s successors or assigns for
the return of all or any part of the Security Deposit in the event any such mortgagee, beneficiary
or purchaser becomes a mortgagee in possession or succeeds to the interest of Landlord

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under this Lease unless, and then only to the extent that, such mortgagee, beneficiary or
purchaser has received all or any part of the Security Deposit.

          33. CORPORATE AUTHORITY; FINANCIAL INFORMATION. If Tenant signs as a corporation each
of the persons executing this Lease on behalf of Tenant does hereby covenant and warrant that
Tenant is a duly authorized and existing corporation, that Tenant has and is qualified to do
business in California, that the corporation has full right and authority to enter into this Lease,
and that each and both of the persons signing on behalf of the corporation were authorized to do so. If Tenant signs as a partnership or limited liability company, each of the persons executing
this Lease on behalf of Tenant does hereby covenant and warrant that Tenant is a duly authorized
and existing partnership or limited liability company, as applicable, that Tenant has and is
qualified to do business in California, that Tenant has full right and authority to enter into this
Lease, and that each and both of the persons signing on behalf of the Tenant were authorized to do
so and by their signatures bind the Tenant. Upon Landlord’s request, Tenant shall provide Landlord
with evidence reasonably satisfactory to Landlord confirming the foregoing covenants and
warranties. Upon Landlord’s request, Tenant shall provide Landlord with evidence reasonably
satisfactory to Landlord confirming the foregoing covenants and warranties. Tenant hereby further
covenants and warrants to Landlord that all financial information and other descriptive information
regarding Tenant’s business, which has been or shall be furnished to Landlord, is and shall be
accurate and complete at the time of delivery to Landlord. Tenant shall furnish to Landlord,
within ten (10) days following Landlord’s request therefore, (i) copies of financial statements of
Tenant for the year to date, certified by an officer; and (ii) copies of audited, consolidated
financial statements of Tenant (which shall be the currently available financial statements so long
as Tenant is a publicly traded corporation), including balance sheets and statements of income and
expenses, for the most recent fiscal year, certified and audited by independent public accountants
of recognized standing.

          34. If Landlord signs as a corporation each of the persons executing this Lease on behalf of
Landlord does hereby covenant and warrant that Landlord is a duly authorized and existing
corporation, that Landlord has and is qualified to do business in California, that the corporation
has full right and authority to enter into this Lease, and that each and both of the persons
signing on behalf of the corporation were authorized to do so. Upon Tenant’s request, Landlord
shall provide Tenant with evidence reasonably satisfactory to Tenant confirming the foregoing
covenants and warranties.

          35. PARKING. Tenant shall have the right to use, and Landlord shall maintain for use
by Tenant pursuant to the provisions of Paragraph 7, all of the parking spaces located on the
Project. Landlord agrees that so long as not required by an applicable governmental entity, there
shall be no additional Monthly Base Rent charged for parking (not to be confused with the Expenses
charged pursuant to Paragraph 3).

          36. MISCELLANEOUS.

          (a) The term “Premises” wherever it appears herein includes and shall be deemed or taken to
include (except where such meaning would be clearly repugnant to the context) the office space
demised and improvements now or at any time hereafter comprising or built in the space hereby
demised. The paragraph headings herein are for convenience of reference and shall in no way
define, increase, limit or describe the scope or intent of any provision of this Lease. The term
“Landlord” shall include Landlord and its successors and assigns. In any case where this Lease
is signed by more than one person, the obligations hereunder shall be joint and several. The
term “Tenant” or any pronoun used in place thereof shall indicate and include the masculine or
feminine, the singular or plural number, individuals, firms or corporations, and their and each
of their respective successors, executors, administrators, and permitted assigns, according to
the context hereof.

          (b) Time is of the essence of this Lease and all of its provisions. This Lease shall in all
respects be governed by the laws of the State of California. This Lease, together with its
exhibits, contains all the agreements of the parties hereto and supersedes any previous
negotiations. There have been no representations made by the Landlord or Tenant or
understandings made between the parties other than those set forth in this Lease and its
exhibits. This Lease may not be modified except by a written instrument by the parties hereto.

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          (c) If for any reason whatsoever any of the provisions hereof shall be unenforceable or
ineffective, all of the other provisions shall be and remain in full force and effect.

          (d) Upon Tenant paying the Monthly Base Rent and Additional Charges and performing all of
Tenant’s obligations under this Lease, Tenant shall have quiet and peaceful enjoyment of the
Premises during the Term as against all persons or entities lawfully claiming by, through or
under Landlord; subject, however, to the provisions of this Lease.

          37. TENANT’S REMEDIES. If any default hereunder by Landlord is not cured within the
applicable cure period provided in Paragraph 19(b) (including any Mortgagee’s additional cure
period), Tenant’s exclusive remedies shall be (i) an action for specific performance, or (ii) an
action for actual damages. Tenant shall look solely to Landlord’s interest in the Project for the
recovery of any judgment from Landlord. Landlord, or if Landlord is a partnership its partners
whether general or limited, or if Landlord is a corporation its directors, officers or
shareholders, or if Landlord is a limited liability company its members or managers, shall never be
personally liable for any such judgment. Any lien obtained to enforce such judgment and any levy
of execution thereon shall be subject and subordinate to any Mortgage (excluding any Mortgage which
was created as part of an effort to defraud creditors, i.e., a fraudulent conveyance); provided,
however that any such judgment and any such levy of execution thereon shall not be subject or
subordinated to any Mortgage that is created or recorded in the official records of the county in
which the Project is located after the date of the judgment giving rise to such lien. Landlord’s
interest in the Project shall include any insurance proceeds received by Landlord which are not
controlled by any Mortgagee or other lender. Tenant hereby waives the benefit of any Laws granting
it (A) the right to perform Landlord’s obligations, or (B) the right to terminate this Lease or
withhold Rent on account of any Landlord default, including, without limitation, Sections 1932(1),
1941 and 1942 of the California Civil Code.

          38. REAL ESTATE BROKERS. Each party represents that it has not had dealings with any
real estate broker, finder or other person with respect to this Lease in any manner, except for any
broker named in the Basic Lease Information, whose fees or commission, if earned, shall be paid as
provided in the Basic Lease Information. Each party shall hold harmless the other party from all
damages resulting from any claims that may be asserted against the other party by any other broker,
finder or other person with whom the other party has or purportedly has dealt.

          39. LEASE EFFECTIVE DATE. Submission of this instrument for examination or signature
by Tenant does not constitute a reservation of or option for lease, and it is not effective as a
lease or otherwise until execution and delivery by both Landlord and Tenant.

          40. SIGNAGE. Tenant shall be allowed to use a monument sign near the Project’s
entrance, and to install exterior signage and signage in the lobby of the Building, subject to this
Paragraph 40. Tenant shall be responsible for the costs related to such signage. Such signage
shall be subject to approval from Landlord of the exact number, size, location and materials
therefor (which consent shall not be unreasonably withheld), approval from the City of Sunnyvale
and compliance with applicable governmental restrictions, including but not limited to, ordinances
of the City of Sunnyvale.

          41. HAZARDOUS SUBSTANCE LIABILITY. Tenant has received from Landlord a copy of the
Phase I Environmental Assessment of Two Office Buildings located at 1322 Crossman Avenue and 1341
Orleans Drive, Sunnyvale, California, dated August 7, 1997, prepared by McLaren Hart (the
“Environmental Report”).

          (a) Definition of Hazardous Substances. For the purpose of this Lease, “Hazardous
Substances” shall be defined, collectively, as oil, flammable explosives, asbestos, radioactive
materials, hazardous wastes, toxic or contaminated substances or similar materials, including,
without limitation, any substances which are “hazardous substances,” “hazardous wastes,”
“hazardous materials” or “toxic substances” under applicable environmental laws, ordinance or
regulation.

          (b) Tenant Indemnity. Tenant releases Landlord from any liability for, waives all claims
against Landlord and shall indemnify, defend and hold harmless Landlord, its employees, partners,
agents, subsidiaries and affiliate organizations against any and all claims, suits, loss, costs
(including costs of

- 25 -

 

investigation, clean up, monitoring, restoration and reasonably attorney fees), damage or
liability, whether foreseeable or unforeseeable, by reason of property damage (including
diminution in the value of the property of Landlord), personal injury or death directly arising
from or related to Hazardous Substances released, manufactured, discharged, disposed, used or
stored on, in, or under the Project or Premises during the Term by any Tenant Parties. The
provisions of this Tenant Indemnity regarding Hazardous Substances shall survive the termination
of the Lease.

          (c) Landlord Indemnity. Landlord releases Tenant from any liability for, waives all claims
against Tenant and shall indemnify, defend and hold harmless Tenant, its officers, employees, and
agents to the extent of Landlord’s interest in the Project, against any and all actions by any
governmental agency for clean up of Hazardous Substances on or under the Project, including costs
of legal proceedings, investigation, clean up, monitoring, and restoration, including reasonable
attorney fees, if, and to the extent, arising from the presence of Hazardous Substances on, in or
under the Project or Premises as of the date of this Lease. The provisions of this Landlord
Indemnity regarding Hazardous Substances shall survive the termination of the Lease.

Tenant’s use of Hazardous Substances beyond very immaterial amounts of toxic materials incidental
to its office use (e.g.. copier toner) shall be subject to Landlord’s prior written approval and
shall comply with any applicable laws.

          42. SATELLITE ANTENNAE. During the Term of this Lease, Tenant shall have the right,
subject to relevant regulatory approvals and Landlord’s consent (with Landlord’s consent not to be
unreasonably withheld, conditioned or delayed), to install satellite antennae (“Antennae”) on the
roof of the Building in a location satisfactory to both Landlord and Tenant. Without otherwise
limiting the criteria upon which Landlord may withhold its consent to any proposed Antennae, if
Landlord withholds its consent due to concerns regarding the appearance of the Antennae or the
impact on structural aspects of the Building, such withholding of consent shall be presumptively
reasonable. Tenant shall not be charged additional rent for roof space. Prior to submitting any
plans to the City of Sunnyvale or proceeding with any installation of the Antennae, Tenant shall
submit to Landlord elevations and specifications for the Antennae. Tenant shall install the
Antennae at its sole expense and shall be responsible for any damage caused by the installation of
the Antennae or related to the Antennae. At the end of the Term, Tenant shall remove the Antennae
from their locations and repair any damage caused by such removal.

          43. OPTION TO RENEW. Upon condition that (i) no Default is continuing under this
Lease at the time of exercise or at the commencement of the option term, and (ii) Tenant continues
to physically occupy the entire Premises, then Tenant shall have the right to extend the Term for
one (1) period of five (5) years (the “Extension Term”) following the initial Expiration Date , by
giving written notice (“Exercise Notice”) to Landlord at least eighteen (18) months prior to the
Expiration of the immediately preceding Term.

          44. RENT DURING EXTENSION TERM. The initial Monthly Base Rent (subject to Paragraph
3(b)) during the Extension Term shall be the greater of the Base Rent paid during the last month of
the immediately preceding Term or ninety five percent (95%) of the Fair Market Rental Value for the
Premises as of the commencement of the option term, as determined below:

          (a) Within thirty (30) days after receipt of Tenant’s Exercise Notice, Landlord shall notify
Tenant of Landlord’s estimate of the Fair Market Rental Value for the Premises, as determined
below, for determining Monthly Base Rent during the ensuing Extension Term; provided, however, if
Tenant’s Exercise Notice is given more than twelve (12) months before the Expiration Date,
Landlord’s estimate of Fair Market Rental Value may, but need not be given more than twelve (12)
months before the Expiration Date. Within fifteen (15) days after receipt of such notice from
Landlord, Tenant shall notify Landlord in writing that it (i) agrees with such rental rate or
(ii) disagrees with such rental rate. No response shall constitute agreement. In the event that
Tenant disagrees with Landlord’s estimate of Fair Market Rental Value for the Premises, then the
parties shall meet and endeavor to agree within fifteen (15) days after Landlord receives
Tenant’s notice described in the immediately preceding sentence. If the parties cannot agree
upon the Fair Market Rental Value within said fifteen (15) day period, then the parties shall
submit the matter to binding appraisal in accordance with the following procedure except that in
any event neither party shall be obligated to start such procedure sooner than twelve (12)months
before the expiration of the Lease Term. Within fifteen (15) days of the conclusion of the
period during which the two parties fail to agree (but not sooner than twelve (12) months

- 26 -

 

before the expiration of the Lease Term), the parties shall either (i) jointly appoint an
appraiser for this purpose or (ii) failing this joint action, each separately designate a
disinterested appraiser. No person shall be appointed or designated an appraiser unless such
person has at least five (5) years experience in appraising major commercial property in Santa
Clara County and is a member of a recognized society of real estate appraisers. If within thirty
(30) days after the appointment, the two appraisers reach agreement on the Fair Market Rental
Value for the Premises, that value shall be binding and conclusive upon the parties. If the two
appraisers thus appointed cannot reach agreement on the Fair Market Rental Value for the Premises
within thirty (30) days after their appointment, then the appraisers thus appointed shall appoint
a third disinterested appraiser having like qualifications within five (5) days. If within
thirty (30) days after the appointment of the third appraiser a majority of the appraisers agree
on the Fair Market Rental Value of the Premises, that value shall be binding and conclusive upon
the parties. If within thirty (30) days after the appointment of the third appraiser a majority
of the appraisers cannot reach agreement on the Fair Market Rental Value for the Premises, then
the three appraisers shall each simultaneously submit their independent appraisal to the parties,
the appraisal farthest from the median of the three appraisals shall be disregarded, and the mean
average of the remaining two appraisals shall be deemed to be the Fair Market Rental Value for
the Premises and shall be binding and conclusive upon the parties. Each party shall pay the fees
and expenses of the appraiser appointed by it and shall share equally the fees and expenses of
the third appraiser. If the two appraisers appointed by the parties cannot agree on the
appointment of the third appraiser, they or either of them shall give notice of such failure to
agree to the parties and if the parties fail to agree upon the selection of such third appraiser
within ten (10) days after the appraisers appointed by the parties give such notice, then either
of the parties, upon notice to the other party, may request such appointment by the American
Arbitration Association or, on it failure, refusal or inability to act, may apply for such
appointment to the presiding judge of the Superior Court of Santa Clara County, California.

          (b) Wherever used throughout this paragraph (Rent during Extension Term) the term “Fair
Market Rental Value” shall mean the fair market rental value of the Premises, using as a guide
the rate of monthly base rent which would be charged during the Extension Term in the City of
Sunnyvale and adjacent cities for comparable high image, office space in comparable condition,
of comparable quality, as of the time that the Extension Term commences, with appropriate
adjustments regarding taxes, insurance and operating expenses as necessary to insure
comparability to this Lease, as the case may be, and also taking into consideration amount and
type of parking, location, the existence of any leasehold improvements (regardless of who paid
for them and with the assumption, for purposes of determining the Fair Market Rental Value, that
they are fully usable by Tenant), proposed term of lease, amount of space leased, extent of
service provided or to be provided, and any other relevant terms or conditions (including
consideration of whether or not the monthly base rent is fixed).

          (c) In the event of a failure, refusal or inability of any appraiser to act, his successor
shall be appointed by the party who originally appointed him, but in the case of the third
appraiser, his successor shall be appointed in the same manner as provided for appointment of the
third appraiser.

          (d) The appraisers shall render their appraisals in writing with counterpart copies to
Landlord and Tenant. The appraisers shall have no power to modify the provisions of this Lease.

          (e) To the extent that a binding appraisal has not been completed prior to the expiration of
any preceding period for which Monthly Base Rent has been determined, Tenant shall pay Monthly
Base Rent at the rate estimated by Landlord, with an adjustment to be made once Fair Market
Rental Value is ultimately determined by binding appraisal. In no event shall any such
adjustment result in a decrease of the Monthly Base Rent for the Premises below the amount
payable by Tenant as of the period immediately preceding the ensuing Extension Term.

          (f) From and after the commencement of the Extension Term, all of the other terms, covenants
and conditions of the Lease shall also apply; provided, however, that during the second Extension
Term Tenant shall have no further rights to extend the Term.

[No further text on this page]

- 27 -

 

     IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date first above
written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	CARIBBEAN/GENEVA INVESTORS,	 	 
	 	 	a California Limited Partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	MOZAD, a California Limited Partnership,	 	 
	 	 	 	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ John Mozart	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	John Mozart	 	 
	 	 	 	 	 	 	Its: Managing General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	CROSSMAN PARTNERS, L.P.,	 	 
	 	 	a California Limited Partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By: 	 	MOZAD, a California Limited Partnership	 	 
	 	 	 	 	 	 	Its: Managing General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	/s/ John Mozart

	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	John Mozart	 	 
	 

	 	 	 	 	 	 	 	Its: Managing General Partner	 	 

	 	 	 	 	 
	 

	 	By: The Lovewell 2006 Irrevocable
Trust fbo James Barry Lovewell, Dated June 21, 2006 General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ John B. Lovewell
 	 
	 	 	John B. Lovewell, Co-Trustee	 
	 
	 	By:  	
/s/ Cynthia Lovewell
 	 
	 	 	Cynthia Lovewell, Co-Trustee	 
	 

	 	 	 	 	 
	 

	 	By: The Lovewell 2006 Irrevocable
Trust fbo Jennifer Hilary Lovewell, dated June 21, 2006 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
/s/ John B. Lovewell
 	 
	 	 	John B. Lovewell, Co-Trustee	 
	 
	 	By:  	
/s/ Cynthia Lovewell
 	 
	 	 	Cynthia Lovewell, Co-Trustee	 
	 

	 	 	 	 	 
	 

	 	TENANT:
	 	 
	 
	 	 	 	 
	 

	 	ARUBA NETWORKS, INC.

a Delaware corporation	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Alexa King	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Alexa King	 	 
	 

	 	 	 	Its:	 	General Counsel	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

- 28 -

 

EXHIBIT “A”

PREMISES

[See attached Site Plan]

- 1 -

 

EXHIBIT “B”

LEGAL DESCRIPTION OF THE LAND

REAL PROPERTY in the City of Sunnyvale, County of Santa Clara, State of California, described as
follows:

Parcel 6, as shown on that certain Map entitled which was filed for record in the Office of the
Recorder of the County of Santa Clara, State of California on July 18, 1978 in Book 423 of Maps,
page(s) 13.

APN: 110-36-003

ARB: 10-04-23.02.02 (23.02, 23)

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EXHIBIT “C”

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

- 1 -

 

EXHIBIT “D”

RULES AND REGULATIONS

     1. Sidewalks, halls, passages, exits, entrances, elevators, escalators and stairways shall not
be obstructed by Tenant or used by Tenant for any purpose other than for ingress to and egress from
the Premises. Tenant, and Tenant’s employees or invitees, shall not go upon the roof of the
Building, except as authorized by Landlord or as expressly set forth in the Lease.

     2. Except as expressly permitted in the Lease, no sign, placard, picture, name, advertisement
or notice visible from the exterior of the Premises shall be inscribed, painted, affixed, installed
or otherwise displayed by Tenant on any part of the Building without the prior written consent of
Landlord, and Landlord shall have the right to remove any such sign, placard, picture, name,
advertisement or notice without notice to and at the expense of Tenant.

          If Landlord shall have given consent relating to a sign to Tenant at any time, whether before
or after the execution of the Lease, such consent shall not in any way operate as a waiver or
release of any of the provisions hereof or of the Lease, and shall be deemed to relate only to the
particular sign, placard, picture, name, advertisement or notice so consented to by Landlord and
shall not be construed as dispensing with the necessity of obtaining the specific written consent
of Landlord with respect to any other such sign, placard, picture, name, advertisement or notice.
All approved signs or lettering on doors and walls shall be printed, painted, affixed or inscribed
at the expense of Tenant.

     3. No curtains, draperies, blinds, shutters, shades, screens or other coverings, awnings,
hangings or decorations shall be attached to, hung or placed in, or used in connection with, any
window, door or patio on the Premises without the prior written consent of Landlord. In any event
with the prior written consent of Landlord, all such items shall be installed inboard of Landlord’s
window coverings and shall not in any way be visible from the exterior of the Building. No
articles shall be placed or kept on the window sills so as to be visible from the exterior of the
Building. No articles shall be placed against glass partitions or doors which might appear
unsightly from outside the Building.

     4. Tenant shall see that the doors of the Premises are closed and securely locked and must
observe strict care and caution that all water faucets or water apparatus are entirely shut off
before Tenant or its employees leave such Premises, and that all utilities shall likewise be
carefully shut off, so as to prevent waste or damage, and for any default or carelessness the
Tenant shall make good all injuries sustained by other tenants or occupants of the Building or
Landlord.

     5. [Intentionally deleted]

     6. Tenant shall have the right to install its own security system for the Premises so long as
Tenant shall furnish Landlord with a key or other access device for any such lock.

     7. If Tenant shall alter any lock or access device or install a new or additional lock or
access device, Tenant shall in each case furnish Landlord with a key for any such lock. Tenant,
upon the termination of the tenancy, shall deliver to Landlord all the keys or access devices for
the Building, offices, rooms and toilet rooms which shall have been furnished to Tenant or which
Tenant shall have had made. In the event of the loss of any keys or access devices so furnished by
Landlord, Tenant shall pay Landlord therefor.

     8. The toilet rooms, toilets, urinals, wash bowls and other apparatus shall not be used for
any purpose other than that for which they were constructed and no foreign substance of any kind
whatsoever shall be thrown therein, and the expense of any breakage, stoppage or damage resulting
from the violation of this rule by Tenant or Tenant’s employees or invitees shall be borne by
Tenant.

     9. Tenant shall not use or keep in the Premises or the Building any kerosene, gasoline or
inflammable or combustible fluid or material other than limited quantities necessary for the
operation or

- 2 -

 

maintenance of office or office equipment. Tenant shall not use any method of heating or air
conditioning other than supplied pursuant to the Lease.

     10. Tenant shall not use, keep or permit to be used or kept in the Premises any foul or
noxious gas or substance or permit or suffer the Premises to be occupied or used in a manner
offensive or objectionable to Landlord by reason of noise, odors and/or vibrations or interfere in
any way with anyone having business in the Project, nor shall any animals or birds be brought or
kept in or about the Premises or the Building.

     11. Except with the prior written consent of Landlord, Tenant shall not sell, or permit the
sale, at retail, of newspapers, magazines, periodicals, theater tickets or any other goods or
merchandise in or on the Premises, nor shall Tenant carry on, or permit or allow any employee or
other person to carry on, the business of stenography, typewriting or any similar business in or
from the Premises for the service or accommodation of occupants of any other portion of the
Building other than as set forth in Tenant’s permitted use herein, nor shall the Premises be used
for the storage of merchandise or for manufacturing of any kind, or the business of a public barber
shop or beauty parlor, nor shall the Premises be used for any improper, immoral or objectionable
purpose, or any business or activity other than that specifically provided for in the Lease.

     12. Except for Tenant’s right to install Antennae pursuant to the Lease, Tenant shall not
install any radio or television antenna, loudspeaker or any other device on the exterior walls or
the roof of the Building. Tenant shall not interfere with radio or television broadcasting or
reception from or in the Building or elsewhere.

     13. Tenant shall not lay linoleum, tile, carpet or any other floor covering so that the same
shall be affixed to the floor of the Premises in any manner except as approved in writing by
Landlord. The expense of repairing any damage resulting from a violation of this rule by Tenant or
Tenant’s contractors, employees or invitees or the removal of any floor covering shall be borne by
Tenant. Tenant shall use chair pads if needed to avoid excess wear and tear to the floor
coverings.

     14. Landlord shall have the right to prescribe the weight, size, and position of all safes,
furniture or other heavy equipment brought into the Building. Safes or other heavy objects shall,
if considered necessary by Landlord, stand on wood strips of such thickness as determined by
Landlord to be necessary to properly distribute the weight thereof. Landlord will not be
responsible for loss of or damage to any such safe, equipment or property from any cause, and all
damage done to the Building by moving or maintaining any such safe, equipment or other property
shall be repaired at the expense of Tenant.

          Business machines and mechanical equipment belonging to Tenant which cause noise or vibration
that may be transmitted to the structure of the Building or to any space therein to such a degree
as to be objectionable to Landlord or to any tenants in the Building shall be placed and maintained
by Tenant, at Tenant’s expense, on vibration eliminators or other devices sufficient to eliminate
noise or vibration. The persons employed to move such equipment in or out of the Building must be
reasonably acceptable to Landlord.

     15. Tenant shall not place a load upon any floor of the Premises which exceeds the load per
square foot which such floor was designed to carry and which is allowed by law. Tenant shall not
mark, use double-sided adhesive tape on, or drive nails, screw or drill into, the partitions,
woodwork or plaster or in any way deface the Premises or any part thereof. Tenant may hang
pictures on walls in the Premises. Any damage to the walls caused by molley bolts, or like hanging
materials, will be repaired by Tenant.

     16. Tenant shall not install, maintain or operate upon the Premises any vending machine other
than those for the exclusive use of Tenant’s or it subtenant’s employees without the written
consent of Landlord.

     17. There shall not be used in any space, or in the public areas of the Building, either by
Tenant or others, any hand trucks except those equipped with rubber tires and side guards or such
other material-handling equipment as Landlord may approve. No other vehicles of any kind shall be
brought by Tenant into or kept in or about the Premises.

- 3 -

 

     18. Tenant shall store all trash and garbage within the interior of the Premises. No material
shall be placed in the trash boxes or receptacles if such material is of such nature that it may
not be disposed of in the ordinary and customary manner of removing and disposing of trash and
garbage in the jurisdiction in which the Premises is located, without violation of any law or
ordinance governing such disposal.

     19. Canvassing, soliciting, distribution of handbills or any other written material and
peddling in the Building are prohibited, and Tenant shall cooperate to prevent the same.

     20. Landlord shall have the right to change the name and address of the Building, subject to
providing reasonable notice to Tenant.

     21. Landlord reserves the right to exclude or expel from the Building any person who, in
Landlord’s judgment, is intoxicated or under the influence of liquor or drugs or who is in
excessive violation of any of the rules or regulations of the Building. Excessive violation shall
mean that Tenant has been provided with repeated notice of such violation and such violation is
continued.

     22. Without the prior written consent of Landlord, Tenant shall not use the name of the
Building in connection with or in promoting or advertising the business of Tenant except as
Tenant’s address. Tenant may use Project’s name on its stationery and business cards.

     23. Tenant shall comply with all safety, fire protection and evacuation procedures and
regulations established by Landlord or any governmental agency.

     24. Tenant assumes any and all responsibility for protecting the Premises from theft, robbery
and pilferage, which includes keeping doors locked and other means of entry to the Premises closed.

     25. Landlord reserves the right to make such other and reasonable, uniformly applied and
non-discriminatory enforced rules and regulations as in its judgment may from time to time be
needed for safety and security, for care and cleanliness of the Building and for the preservation
of good order therein. Tenant agrees to abide by all such Rules and Regulations hereinafter stated
and any additional rules and regulations which are adopted. No new Rule or Regulation shall be
designed to discriminate solely against Tenant.

     26. Tenant shall be responsible for the observance of all of the foregoing Rules and
Regulations by Tenant’s employees, agents, clients, customers, invitees and guests.

     27. Unless otherwise defined, terms used in these Rules and Regulations shall have the same
meaning as in the Lease.

     28. In the event of a conflict between the Lease and the Rules and Regulations, then the Lease
shall control.

- 4 -

 

EXHIBIT “E”

FORM OF TENANT ESTOPPEL CERTIFICATE

Date: ______________         
            , ______

Lender Name and Address

Re:       Loan No. _______ - Application No. ________     

and          
                    
                    
                    
                     
                   

 
                     
                     
       Lessee/Tenant,     

on premises located and addressed as                
    

 
                  
                     
                     
                .

Gentlemen:

The undersigned, as Lessee/Tenant, hereby confirms and represents to you the following:

	 	1.	 	That it has accepted possession of the premises demised pursuant to the terms
of the aforesaid lease.
	 
	 	2.	 	That the building(s), improvements and space required to be furnished according
to the aforesaid lease have been satisfactorily completed in all respects.
	 
	 	3.	 	That the Lessor/Landlord has fulfilled all of its duties of an inducement
nature, and is not in default in any manner in the performance of any of the terms,
covenants or provisions of said lease.
	 
	 	4.	 	That the aforesaid lease has not been modified, altered or amended except by
agreement dated                     .
	 
	 	5.	 	That there are no offsets or credits against rentals, nor have rentals been
prepaid, except as provided by the lease terms.
	 
	 	6.	 	That said rentals commence to accrue on the              
        day of              
       ,
20           .
The primary lease term expires on                 
    , 20___. The fixed
monthly rental is $                   
                     .
	 
	 	7.	 	That we have no notice of an assignment, hypothecation or pledge of rents or the
lease, except to your Company.
	 
	 	8.	 	We certify that the attached lease is a true and complete copy of the lease
and has not been modified, altered and/or amended except as described above.

The above statements are made upon the understanding that your Company will rely on them in
connection with the making of a loan collaterally secured by an assignment of our lease, and that
these statements are true to the best of our knowledge and belief.

Sincerely,

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 

-1-

 

(authorized rep.)

-2-

 

EXHIBIT “F”

FORM OF SUBORDINATION, NONDISTURBANCE AND ATTORNMENT AGREEMENT

SUBORDINATION, NON-DISTURBANCE

AND ATTORNMENT AGREEMENT

     THIS
AGREEMENT made this ___ day of 
                    , ___, between
                     (hereinafter called
 “Mortgagee”) and

  

(hereinafter called “Tenant”).

W I T N E S S E T H:

Recitals

     A. Mortgagee is now the owner and holder of a Deed of Trust (hereinafter called the
“Mortgage”) dated                      , covering the real property described in Exhibit
“A” attached hereto and made a part hereof and the buildings and improvements thereon
(hereinafter collectively called the “Mortgaged Property”) securing the payment of a
promissory note in the stated principal amount of $                      payable to the order of
Mortgagee.

     B. Tenant is the holder of a leasehold estate pursuant to a lease (hereinafter called the
“Lease”) dated                      , with                                          as landlord
(said landlord and its successors and assigns occupying the position of landlord under the Lease
hereinafter called “Landlord”), covering the Mortgaged Property (hereinafter called the
“Demised Premises”).

     C. Tenant and Mortgagee desire to confirm their understanding with respect to the Lease and
the Mortgage.

Agreements

     NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained,
Mortgagee and Tenant hereby agree and covenant as follows:

     1. The Lease now is, and shall at all times continue to be, subject and subordinate in each
and every respect, to the Mortgage and to any and all liens, interests and rights created thereby
and to any and all increases, renewals, modifications, extensions, substitutions, replacements
and/or consolidations of the Mortgage, provided that any and all such increases, renewals,
modifications, extensions, substitutions, replacements and/or consolidations shall nevertheless be
subject to the terms of this Agreement.

     2. So long as Tenant is not in default (beyond any period given Tenant to cure such default)
in the payment of rent or additional rent or in the performance of any material term,

-1-

 

covenant or condition of the Lease on Tenant’s part to the performed, (a) Tenant’s possession of
the Demised Premises and Tenant’s rights and privileges under the Lease, or any extensions or
renewals thereof or acquisition of additional space which may be effected in accordance with any
option therefor in the Lease, shall not be diminished or interfered with by Mortgagee in the
exercise of any of its rights under the Mortgage, and (b) Mortgagee will not join Tenant as a party
defendant in any action or proceeding for the purposes of terminating Tenant’s interest and estate
under the Lease because of any default under the Mortgage, however Mortgagee may join Tenant as a
party defendant in any action or proceeding to enforce the Mortgage or any other instrument given
as security for the loan to Landlord, if such is done only for purposes of procedure and required
completeness and not for the purposes of canceling the Lease or Tenant’s rights under such Lease.

     3. In the event any proceedings are brought for the foreclosure of the Mortgage, or if the
Mortgaged Property be sold pursuant to a trustee’s sale under the Mortgage or if the Mortgagee
becomes owner of the Mortgaged Property by acceptance of a deed or assignment in lieu of
foreclosure or otherwise, Tenant shall attorn to the purchaser or Mortgagee, as the case may be,
upon any such foreclosure sale or trustee’s sale or acceptance by Mortgagee of a deed or assignment
in lieu of foreclosure and Tenant shall recognize such purchaser or Mortgagee, as the case may be,
as the landlord under the Lease. Such attornment shall be effective and self-operative without the
execution of any further instrument on the part of any of the parties hereto. Tenant agrees,
however, to execute and deliver at any time and from time to time, upon the request of Landlord or
of any holder(s) of any of the indebtedness or other obligations secured by the Mortgage or any
such purchaser, any instrument or certificate which, in the reasonable judgment of Landlord or of
such holder(s) or such purchaser, may be necessary or appropriate in any such foreclosure
proceeding or otherwise to evidence such attornment.

     4. If Mortgagee shall succeed to the interest of Landlord under the Lease in any manner, or if
any purchaser acquires the Demised Premises upon any foreclosure of the Mortgage or any trustee’s
sale under the Mortgage, Mortgagee or such purchaser, as the case may be, in the event of
attornment shall have the same remedies by entry, action or otherwise in the event of any default
by Tenant (beyond any period given Tenant to cure such default) in the payment of rent or
additional rent or in the performance of any of the terms, covenants and conditions of the Lease on
Tenant’s part to be performed that Landlord had or would have had if Mortgagee or such purchaser
had not succeeded to the interest of Landlord. From and after any such attornment, Mortgagee or
such purchaser shall be bound to Tenant under all the terms, covenants, and conditions of the
Lease, and Tenant shall, from and after the succession to the interest of Landlord under the Lease
by Mortgagee or such purchaser, have the same remedies against Mortgagee or such purchaser for the
breach of an agreement contained in the Lease that Tenant might have had under the Lease against
Landlord if Mortgagee or such purchaser had not succeeded to the interest of Landlord; provided,
however, the Mortgagee or such purchaser shall not be:

          (a) liable for any act or omission of any prior landlord (including Landlord); or

          (b) subject to any offsets or defenses which Tenant might have against any prior landlord
(including Landlord); or

          (c) bound by any rent or additional rent which Tenant might have paid for more than the
current month to any prior landlord (including Landlord).

-2-

 

     5. Nothing herein contained is intended, nor shall it be construed, to abridge or adversely
affect any right or remedy of Landlord under the Lease in the event of any default by Tenant
(beyond any period given Tenant to cure such default) in the payment of rent or additional rent or
in the performance of any of the terms, covenants or conditions of the Lease on Tenant’s part to be
performed.

     6. This Agreement and the Lease may not be amended or modified orally or in any manner other
than by an agreement in writing signed by the parties hereto or their respective successors in
interest. This Agreement shall inure to the benefit of and be binding upon the parties hereto,
their successors and assigns, and any purchaser or purchasers at foreclosure of the Mortgaged
Property, and their respective heirs, personal representatives, successors and assigns.

     7. To the extent that the Lease shall entitle the Tenant to notice of any mortgage, and/or the
address of the Mortgagee, this Agreement shall constitute such notice to the Tenant with respect to
the Mortgage and to the address of the Mortgagee.

     IN WITNESS WHEREOF, the parties hereto have hereunto caused this Agreement to be duly executed
as of the day and year first above written.

	 	 	 	 	 	 	 
	 

	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	 

	 	NAME	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 
	 	Name:

	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	MORTGAGEE:	 	 
	 
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Title:
	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	Address:	 	 

-3-Exhibit 10.1

Exhibit 10.1

	 	 	 
	
	 	Line of Credit Note

(with principal reduction)
	 	 	 
	 	 	$25,000,000.00
	
 
	 	Date: September 30, 2009

Promise to Pay. On or before December 31, 2009 (the “Stated Maturity Date”), for value received, United Western
Bancorp, Inc. (the “Borrower”) promises to pay to JPMorgan Chase Bank, N.A., whose address is 1125 17th Street, Denver,
CO 80202 (the “Bank”) or order, in lawful money of the United States of America, the sum of Twenty Five Million and
00/100 Dollars ($25,000,000.00) or so much thereof as may be advanced and outstanding, plus interest on the unpaid
principal balance as provided below.

Interest Rate Definitions. As used in this Note, the following terms have the following respective meanings:

“Adjusted LIBOR Rate” means, with respect to a LIBOR Rate Advance for the relevant Interest Period, the sum of (i) the
Applicable Margin plus (ii) the quotient of (a) the LIBOR Rate applicable to such Interest Period, divided by (b) one
minus the Reserve Requirement (expressed as a decimal) applicable to such Interest Period.

"Adjusted One Month LIBOR Rate” means, with respect to a CB Floating Rate Advance for any day, the sum of (i) 2.50% per
annum plus (ii) the quotient of (a) the interest rate determined by the Bank by reference to the Page to be the rate at
approximately 11:00 a.m. London time, on such date or, if such date is not a Business Day, on the immediately preceding
Business Day for dollar deposits with a maturity equal to one (1) month, divided by (b) one minus the Reserve
Requirement (expressed as a decimal) applicable to dollar deposits in the London interbank market with a maturity equal
to one (1) month.

“Advance” means a LIBOR Rate Advance or a CB Floating Rate Advance and “Advances” means all LIBOR Rate Advances and all
CB Floating Rate Advances under this Note.

“Applicable Margin” means with respect to any CB Floating Rate Advance, 3.00% per annum and with respect to any LIBOR
Rate Advance, 5.00% per annum.

“Business Day” means (i) with respect to the Adjusted One Month LIBOR Rate and any borrowing, payment or rate selection
of LIBOR Rate Advances, a day (other than a Saturday or Sunday) on which banks generally are open in Colorado and/or
New York for the conduct of substantially all of their commercial lending activities and on which dealings in United
States dollars are carried on in the London interbank market and (ii) for all other purposes, a day other than a
Saturday, Sunday or any other day on which national banking associations are authorized to be closed.

"CB Floating Rate” means the Prime Rate; provided that the CB Floating Rate shall, on any day, not be less than the
Adjusted One Month LIBOR Rate. The CB Floating Rate is a variable rate and any change in the CB Floating Rate due to
any change in the Prime Rate or the Adjusted One Month LIBOR Rate is effective from and including the effective date of
such change in the Prime Rate or the Adjusted One Month LIBOR Rate, respectively.

"CB Floating Rate Advance” means any borrowing under this Note when and to the extent that its interest rate is
determined by reference to the CB Floating Rate.

“Interest Period” means, with respect to a LIBOR Rate Advance, a period of one (1) or three (3) month(s) commencing on
a Business Day selected by the Borrower pursuant to this Note. Such Interest Period shall end on the day which
corresponds numerically to such date one (1) or three (3) month(s) thereafter, as applicable, provided, however, that
if there is no such numerically corresponding day in such first or third succeeding month(s), as applicable, such
Interest Period shall end on the last Business Day of such first or third succeeding month(s), as applicable. If an
Interest Period would otherwise end on a day which is not a Business Day, such Interest Period shall end on the next
succeeding Business Day, provided, however, that if said next succeeding Business Day falls in a new calendar month,
such Interest Period shall end on the immediately preceding Business Day.

“LIBOR Rate” means with respect to any LIBOR Rate Advance for any Interest Period, the interest rate determined by the
Bank by reference to Reuters Screen LIBOR01, formerly known as Page 3750 of the Moneyline Telerate Service (together
with any successor or substitute, the “Service”) or any successor or substitute page of the Service, providing rate
quotations comparable to those currently provided on such page of the Service, as determined by the Bank from time to
time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank
market (the “Page”) to be the rate at approximately 11:00 a.m. London time, two Business Days prior to the commencement
of the Interest Period for dollar deposits with a maturity equal to such Interest Period. If no LIBOR Rate is available
to the Bank, the applicable LIBOR Rate for the relevant Interest Period shall instead be the rate determined by the
Bank to be the rate at which the Bank offers to place U.S. dollar deposits having a maturity equal to such Interest Period with first-class banks in the London interbank market at approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period.

 

1

 

“LIBOR Rate Advance” means any borrowing under this Note when and to the extent that its interest rate is determined by
reference to the Adjusted LIBOR Rate.

“Prime Rate” means the rate of interest per annum announced from time to time by the Bank as its prime rate. The Prime
Rate is a variable rate and each change in the Prime Rate is effective from and including the date the change is
announced as being effective. THE PRIME RATE IS A REFERENCE RATE AND MAY NOT BE THE BANK’S LOWEST RATE.

“Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in
effect and any successor thereto or other regulation or official interpretation of said Board of Governors relating to
reserve requirements applicable to member banks of the Federal Reserve System.

“Reserve Requirement” means the maximum aggregate reserve requirement (including all basic, supplemental, marginal and
other reserves) which is imposed under Regulation D.

Interest Rates. The Advance(s) evidenced by this Note may be drawn down and remain outstanding as up to five (5) LIBOR
Rate Advances and/or a CB Floating Rate Advance. The Borrower shall pay interest to the Bank on the outstanding and
unpaid principal amount of each CB Floating Rate Advance at the CB Floating Rate plus the Applicable Margin and each
LIBOR Rate Advance at the Adjusted LIBOR Rate. Interest shall be calculated on the basis of the actual number of days
elapsed in a year of 360 days. In no event shall the interest rate applicable to any Advance exceed the maximum rate
allowed by law. Any interest payment which would for any reason be deemed unlawful under applicable law shall be
applied to principal.

Bank Records. The Bank shall, in the ordinary course of business, make notations in its records of the date, amount,
interest rate and Interest Period of each Advance hereunder, the amount of each payment on the Advances, and other
information. Such records shall, in the absence of manifest error, be conclusive as to the outstanding principal
balance of and interest rate or rates applicable to this Note.

Notice and Manner of Electing Interest Rates on Advances. The Borrower shall give the Bank written notice (effective
upon receipt) of the Borrower’s intent to draw down an Advance under this Note no later than 2:00 p.m. Mountain time,
on the date of disbursement, if the full amount of the drawn Advance is to be disbursed as a CB Floating Rate Advance
and no later than 11:00 a.m. Mountain time three (3) Business Days before disbursement, if any part of such Advance is
to be disbursed as a LIBOR Rate Advance. The Borrower’s notice must specify: (a) the disbursement date, (b) the amount
of each Advance, (c) the type of each Advance (CB Floating Rate Advance or LIBOR Rate Advance), and (d) for each LIBOR
Rate Advance, the duration of the applicable Interest Period; provided, however, that the Borrower may not elect an
Interest Period ending after the maturity date of this Note. Each LIBOR Rate Advance shall be in a minimum amount of
One Hundred Thousand and 00/100 Dollars ($100,000.00). All notices under this paragraph are irrevocable. By the Bank’s
close of business on the disbursement date and upon fulfillment of the conditions set forth herein and in any other of
the Related Documents, the Bank shall disburse the requested Advances in immediately available funds by crediting the
amount of such Advances to the Borrower’s account with the Bank.

Conversion and Renewals. The Borrower may elect from time to time to convert one type of Advance into another or to
renew any Advance by giving the Bank written notice no later than 2:00 p.m. Mountain time, on the date of the
conversion into or renewal of a CB Floating Rate Advance and 11:00 a.m. Mountain time three (3) Business Days before
conversion into or renewal of a LIBOR Rate Advance, specifying: (a) the renewal or conversion date, (b) the amount of
the Advance to be converted or renewed, (c) in the case of conversion, the type of Advance to be converted into (CB
Floating Rate Advance or LIBOR Rate Advance), and (d) in the case of renewals of or conversion into a LIBOR Rate
Advance, the applicable Interest Period, provided that (i) the minimum principal amount of each LIBOR Rate Advance
outstanding after a renewal or conversion shall be One Million and 00/100 Dollars ($1,000,000.00); (ii) a LIBOR Rate
Advance can only be converted on the last day of the Interest Period for the Advance; and (iii) the Borrower may not
elect an Interest Period ending after the maturity date of this Note. All notices given under this paragraph are
irrevocable. If the Borrower fails to give the Bank the notice specified above for the renewal or conversion of a LIBOR
Rate Advance by 11:00 a.m. Mountain time three (3) Business Days before the end of the Interest Period for that
Advance, the Advance shall automatically be converted to a CB Floating Rate Advance on the last day of the Interest
Period for the Advance.

Principal Reduction. Notwithstanding any other provision in this Note, the maximum principal amount available under
this Note shall reduce to Twenty Million and 00/100 Dollars ($20,000,000.00) on and after November 30, 2009 (the
“Principal Reduction Date”). The Borrower shall, on or before the Principal Reduction Date, make such principal
payments as are needed to reduce the outstanding principal balance under this Note to an amount not exceeding Twenty
Million and 00/100 Dollars ($20,000,000.00).

The Borrower shall select interest rates and Interest Periods such that on the Principal Reduction Date the sum of the
principal amount of the CB Floating Rate Advance outstanding on that date plus the aggregate principal amount of the
LIBOR Rate Advances with Interest Periods ending on that date is greater than or equal to any principal payment that may be due on that date.
Any election that does not comply with this requirement will be invalid unless the Bank elects, in its sole discretion,
to honor such election. Although the Bank may choose to honor any such election, the Borrower shall continue to be
subject to the terms of the paragraph of this Note captioned “Prepayment/Funding Loss Indemnification” in regard to
payment of a LIBOR Rate Advance on a date other than the last day of the Interest Period for the Advance.

2

2

 

Interest Payments. Interest on the Advances shall be paid on the last day of each month beginning with the first month
following disbursement of the Advance, whether the Advance is a CB Floating Rate Advance or LIBOR Rate Advance.

Principal Payments. The Borrower shall make the principal payments required in the paragraph entitled “Principal
Reduction” above. All outstanding principal and interest is due and payable in full on the Stated Maturity Date.

Default Rate of Interest. After a default has occurred under this Note, whether or not the Bank elects to accelerate
the maturity of this Note because of such default, all Advances outstanding under this Note, shall bear interest at a
per annum rate equal to the interest rate being charged on each such Advance plus three percent (3.00%) from the date
the Bank elects to impose such rate. Imposition of this rate shall not affect any limitations contained in this Note on
the Borrower’s right to repay principal on any LIBOR Rate Advance before the expiration of the Interest Period for each
such Advance.

Prepayment/Funding Loss Indemnification. The Borrower may prepay all or any part of any CB Floating Rate Advance at any
time without premium or penalty.

The Borrower shall pay the Bank amounts sufficient (in the Bank’s reasonable opinion) to compensate the Bank for any
loss, cost, or expense incurred as a result of:

A.          Any payment of a LIBOR Rate Advance on a date other than the last day of the Interest Period for the
Advance, including, without limitation, acceleration of the Advances by the Bank pursuant to this Note or the other
Related Documents; or

B.          Any failure by the Borrower to borrow or renew a LIBOR Rate Advance on the date specified in the relevant
notice from the Borrower to the Bank.

Additional Costs. If any applicable domestic or foreign law, treaty, government rule or regulation now or later in
effect (whether or not it now applies to the Bank) or the interpretation or administration thereof by a governmental
authority charged with such interpretation or administration, or compliance by the Bank with any guideline, request or
directive of such an authority (whether or not having the force of law), shall (a) affect the basis of taxation of
payments to the Bank of any amounts payable by the Borrower under this Note or the other Related Documents (other than
taxes imposed on the overall net income of the Bank by the jurisdiction or by any political subdivision or taxing
authority of the jurisdiction in which the Bank has its principal office), or (b) impose, modify or deem applicable any
reserve, special deposit or similar requirement (including, without limitation, Federal Deposit Insurance Corporation
deposit insurance premiums or assessments) against assets of, deposits with or for the account of, or credit extended
by the Bank, or (c) impose any other condition with respect to this Note or the other Related Documents and the result
of any of the foregoing is to increase the cost to the Bank of extending, maintaining or funding any LIBOR Rate Advance
or to reduce the amount of any sum receivable by the Bank on any Advance, or (d) affect the amount of capital required
or expected to be maintained by the Bank (or any corporation controlling the Bank) and the Bank determines that the
amount of such capital is increased by or based upon the existence of the Bank’s obligations under this Note or the
other Related Documents and the increase has the effect of reducing the rate of return on the Bank’s (or its
controlling corporation’s) capital as a consequence of the obligations under this Note or the other Related Documents
to a level below that which the Bank (or its controlling corporation) could have achieved but for such circumstances
(taking into consideration its policies with respect to capital adequacy) by an amount deemed by the Bank to be
material, then the Borrower shall pay to the Bank, from time to time, upon request by the Bank, additional amounts
sufficient to compensate the Bank for the increased cost or reduced sum receivable. Whenever the Bank shall learn of
circumstances described in this section which are likely to result in additional costs to the Borrower, the Bank shall
give prompt written notice to the Borrower of the basis for and the estimated amount of any such anticipated additional
costs. A statement as to the amount of the increased cost or reduced sum receivable, prepared in good faith and in
reasonable detail by the Bank and submitted by the Bank to the Borrower, shall be conclusive and binding for all
purposes absent manifest error in computation.

Illegality. If any applicable domestic or foreign law, treaty, rule or regulation now or later in effect (whether or
not it now applies to the Bank) or the interpretation or administration thereof by a governmental authority charged
with such interpretation or administration, or compliance by the Bank with any guideline, request or directive of such
an authority (whether or not having the force of law), shall make it unlawful or impossible for the Bank to maintain or
fund the LIBOR Rate Advances, then, upon notice to the Borrower by the Bank, the outstanding principal amount of the
LIBOR Rate Advances, together with accrued interest and any other amounts payable to the Bank under this Note or the
other Related Documents on account of the LIBOR Rate Advances shall be repaid (a) immediately upon the Bank’s demand if
such change or compliance with such requests, in the Bank’s judgment, requires immediate repayment, or (b) at the
expiration of the last Interest Period to expire before the effective date of any such change or request provided, however, that subject to the terms and conditions of this Note and the other Related Documents the
Borrower shall be entitled to simultaneously replace the entire outstanding balance of any LIBOR Rate Advance repaid in
accordance with this section with a CB Floating Rate Advance in the same amount.

3

3

 

Inability to Determine Interest Rate. If the Bank determines that (a) quotations of interest rates for the relevant
deposits referred to in the definition of Adjusted LIBOR Rate are not being provided for purposes of determining the
interest rate on a LIBOR Rate Advance as provided in this Note, or (b) the relevant interest rates referred to in the
definition of Adjusted LIBOR Rate do not accurately cover the cost to the Bank of making, funding or maintaining LIBOR
Rate Advances, then the Bank shall at the Bank’s option, give notice of such circumstances to the Borrower, whereupon
(i) the obligation of the Bank to make LIBOR Rate Advances shall be suspended until the Bank notifies the Borrower that
the circumstances giving rise to the suspension no longer exists, and (ii) the Borrower shall repay in full the then
outstanding principal amount of each LIBOR Rate Advance, together with accrued interest, on the last day of the then
current Interest Period applicable to the LIBOR Rate Advance, provided, however, that, subject to the terms and
conditions of this Note and the other Related Documents, the Borrower shall be entitled to simultaneously replace the
entire outstanding balance of any LIBOR Rate Advance repaid in accordance with this section with an Advance bearing
interest at the CB Floating Rate plus the Applicable Margin for CB Floating Rate Advances in the same amount. If the
Bank determines on any day that quotations of interest rates for the relevant deposits referred to in the definition of
Adjusted One Month LIBOR Rate are not being provided for purposes of determining the interest rate on any CB Floating
Rate Advance on any day, then each CB Floating Rate Advance shall bear interest at the Prime Rate plus the Applicable
Margin for CB Floating Rate Advances until the Bank determines that quotations of interest rates for the relevant
deposits referred to in the definition of Adjusted One Month LIBOR Rate are being provided.

Obligations Due on Non-Business Day. Whenever any payment under this Note becomes due and payable on a day that is not
a Business Day, if no default then exists under this Note, the maturity of the payment shall be extended to the next
succeeding Business Day, except, in the case of a LIBOR Rate Advance, if the result of the extension would be to extend
the payment into another calendar month, the payment must be made on the immediately preceding Business Day.

Matters Regarding Payment. The Borrower will pay the Bank at the Bank’s address shown above or at such other place as
the Bank may designate. Payments shall be allocated among principal, interest and fees at the discretion of the Bank
unless otherwise agreed or required by applicable law. Acceptance by the Bank of any payment which is less than the
payment due at the time shall not constitute a waiver of the Bank’s right to receive payment in full at that time or
any other time.

Authorization for Direct Payments (ACH Debits). To effectuate any payment due under this Note or under any other
Related Documents, the Borrower hereby authorizes the Bank to initiate debit entries to Account Number
                               at the Bank and to debit the same to such account. This authorization to initiate debit
entries shall remain in full force and effect until the Bank has received written notification of its termination in
such time and in such manner as to afford the Bank a reasonable opportunity to act on it. The Borrower represents that
the Borrower is and will be the owner of all funds in such account. The Borrower acknowledges: (1) that such debit
entries may cause an overdraft of such account which may result in the Bank’s refusal to honor items drawn on such
account until adequate deposits are made to such account; (2) that the Bank is under no duty or obligation to initiate
any debit entry for any purpose; and (3) that if a debit is not made because the above-referenced account does not have
a sufficient available balance, or otherwise, the payment may be late or past due.

Late Fee. Any principal or interest which is not paid within 10 days after its due date (whether as stated, by
acceleration or otherwise) shall be subject to a late payment charge of five percent (5.00%) of the total payment due,
in addition to the payment of interest, up to the maximum amount of One Thousand Five Hundred and 00/100 Dollars
($1,500.00) per late charge. The Borrower agrees to pay and stipulates that five percent (5.00%) of the total payment
due is a reasonable amount for a late payment charge. The Borrower shall pay the late payment charge upon demand by the
Bank or, if billed, within the time specified.

Purpose of Loan. The Borrower acknowledges and agrees that this Note evidences a loan for a business, commercial,
agricultural or similar commercial enterprise purpose, and that no advance shall be used for any personal, family or
household purpose.

Credit Facility. The Bank has approved a credit facility to the Borrower in a principal amount not to exceed the face
amount of this Note. The credit facility is in the form of advances made from time to time by the Bank to the Borrower.
This Note evidences the Borrower’s obligation to repay those advances. The aggregate principal amount of debt evidenced
by this Note is the amount reflected from time to time in the records of the Bank. Until the earliest to occur of
maturity, any default, event of default, or any event that would constitute a default or event of default but for the
giving of notice, the lapse of time or both, the Borrower may borrow, pay down and reborrow under this Note subject to
the terms of the Related Documents.

Credit Agreement. This Note is issued pursuant and entitled to the benefits of that certain Credit Agreement by and
between the Borrower and the Bank, dated as of June 29, 2007, as amended by that certain Amendment to Credit Agreement
dated as of June 30, 2008, as amended by that certain Amendment to Credit Agreement dated as of June 29, 2009 (as
amended, modified, restated, and replaced from time to time, the “Credit Agreement”) to which reference is hereby made
for a more complete statement of the terms and conditions under which the loan evidenced hereby is made and is to be repaid. The terms and provisions of the Credit
Agreement are hereby incorporated and made a part hereof by this reference thereto with the same force and effect as if
set forth at length herein. No reference to the Credit Agreement and no provisions of this Note or the Credit
Agreement shall alter or impair the absolute and unconditional obligation of the Borrower to pay the principal and
interest on this Note as herein prescribed. Capitalized terms not otherwise defined herein shall have the meanings
assigned to such terms in the Credit Agreement.

4

4

 

Events of Default/Acceleration. If any Event of Default (as defined in the Credit Agreement) or any other default or
event of default occurs under any of the Related Documents, then this Note shall become due immediately, without
notice, at the Bank’s option, and each Borrower hereby waives notice of intent to accelerate maturity of this Note and
notice of acceleration of this Note and may exercise any remedies provided by the Credit Agreement and/or other Related
Documents., and

Renewal and Extension. This Note is given in replacement, renewal, decrease and/or extension of, but not in
extinguishment of the indebtedness evidenced by, that Line of Credit Note dated June 29, 2009, executed by the Borrower
in the original principal amount of Thirty Million and 00/100 Dollars ($30,000,000.00), including previous renewals or
modifications thereof, if any (the “Prior Note” and together with all loan agreements, credit agreements, reimbursement
agreements, security agreements, mortgages, deeds of trust, pledge agreements, assignments, guaranties, and any other
instrument or document executed in connection with the Prior Note, the “Prior Related Documents”), and is not a
novation thereof. All interest evidenced by the Prior Note shall continue to be due and payable until paid. The
Borrower fully, finally, and forever releases and discharges the Bank and its successors, assigns, directors, officers,
employees, agents, and representatives (each a “Bank Party”) from any and all causes of action, claims, debts, demands,
and liabilities, of whatever kind or nature, in law or equity, of the Borrower, whether now known or unknown to the
Borrower (i) in respect of the Liabilities evidenced by the Prior Note and the Prior Related Documents, or of the
actions or omissions of any Bank Party in any manner related to the Liabilities evidenced by the Prior Note or the
Prior Related Documents and (ii) arising from events occurring prior to the date of this Note. If applicable, all
Collateral continues to secure the payment of this Note and the Liabilities. The provisions of this Note are effective
on the date that this Note has been executed by all of the signers and delivered to the Bank.

Miscellaneous. This Note binds the Borrower and its successors, and benefits the Bank, its successors and assigns. Any
reference to the Bank includes any holder of this Note.

Borrower:

Address: 700 17th Street, Suite 2100

Denver, CO 80202

United Western Bancorp, Inc.

By:
/s/ William D. Snider                                   

William
D. Snider                 CFO

Printed Name                         Title

Date
Signed:   September 30, 2009                   

5

5

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