Document:

NORTHPOINT
      CENTRE

    OFFICE
      LEASE AGREEMENT

    

    

    By
      and
      Between

    

    

    

    Connecticut
      General Life Insurance Company, a Connecticut corporation,

    on
      behalf of its Separate Account R

    (“Landlord”)

    

    

    

    and

    

    

    

    Wintegra,
      Inc.

    (“Tenant”)

    

    

    DATED:
      _____________________

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    REFERENCE
      DATA

    

    

    This
      Reference Data summarizes basic lease information. It is not part of the
      Lease.

    

    
      	
              Item

            	 	
              Section

            
	 	 	
              Reference

            
	 	 	 
	 	 	 
	
              Commencement
                Date

            	
              On
                or about March 1, 2004

            	
              2.1

            
	 	 	 
	
              Leased
                Premises

            	
              5,449
                sq. ft. of Net Rentable Area

            	
              1.1

            
	 	 	 
	
              Term

            	
              Thirty-six
                (36) Months

            	
              2.1

            
	 	 	 
	
              Tenant’s
                Pro Rata Share

            	
              3.6%

            	
              1.4

            
	 	 	 
	
              Base
                Rental

            	
              $9.10
                NNN Average

            	
              3.2

            
	 	 	 
	
              Additional
                Rental

            	
              $8.90
                (estimate for 2004)

            	
              3.3

            
	 	 	 
	
              Security
                Deposit

            	
              $8,173.00

            	
              3.4

            
	 	 	 
	
              Use

            	
              General
                Office

            	
              4.1

            
	 	 	 
	
              Options

            	
              Renewal
                Option

            	
              Exhibit
                “E”

            
	 	 	 
	
              Additional
                Agreements

            	 	
              Exhibit
                “E”

            
	 	 	 
	
              Tenant
                Improvement/Construction Agreement

            	
              Exhibit
                “G”

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    

    
      	
              Section
                or 
Exhibit
                No.

            	
              Description

            	
              Page

            
	 	 	 
	
              ARTICLE
                I

            	 
	 	 	 
	
              DEFINITIONS

            	 
	 	 	 
	
              1.1

            	
              Leased
                Premises and Related Terms

            	
              1

            
	
              1.2

            	
              Lease
                Year

            	
              3

            
	
              1.3

            	
              Base
                Operating Cost

            	
              3

            
	
              1.4

            	
              Proportionate
                Share

            	
              5

            
	
              1.5

            	
              Hazardous
                Materials

            	
              5

            
	 	 	 
	
              ARTICLE
                II

            	 
	 	 	 
	
              TERM

            	 
	 	 	 
	
              2.1

            	
              Lease
                Term

            	
              5

            
	 	 	 
	
              ARTICLE
                III

            	 
	 	 	 
	
              RENT

            	 
	 	 	 
	
              3.1

            	
              Rental
                Payments

            	
              6

            
	
              3.2

            	
              Base
                Rental

            	
              7

            
	
              3.3

            	
              Additional
                Rental

            	
              7

            
	
              3.4

            	
              First
                Month’s Rent and Security Deposit

            	
              8

            
	 	 	 
	
              ARTICLE
                IV

            	 
	 	 	 
	
              TENANT’S
                DUTIES

            	 
	 	 	 
	
              4.1

            	
              Use

            	
              8

            
	
              4.2

            	
              Repairs,
                Maintenance, and Cleaning

            	
              9

            
	
              4.3

            	
              Compliance
                with Laws; Americans With Disabilities Act

            	
              10

            
	
              4.4

            	
              Assignment
                and Subletting

            	
              10

            
	
              4.5

            	
              Rules
                and Regulations

            	
              12

            
	
              4.6

            	
              Alterations
                by Tenant

            	
              12

            
	
              4.7

            	
              Taxes
                Payable By Tenant

            	
              13

            
	
              4.8

            	
              Condition
                of Leased Premises

            	
              14

            
	
              4.9

            	
              Limits
                on Hazardous Materials

            	
              14

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	 	 	 
	
              ARTICLE
                V

            	 
	 	 	 
	
              LANDLORD’S
                RIGHTS AND DUTIES

            	 
	 	 	 
	
              5.1

            	
              Right
                of Access by Landlord

            	
              15

            
	
              5.2

            	
              Services
                to be Provided by Landlord

            	
              15

            
	
              5.3

            	
              Limited
                Patrol Service

            	
              16

            
	
              5.4

            	
              Keys

            	
              17

            
	
              5.5

            	
              Tenant
                Identification and Signage

            	
              17

            
	
              5.6

            	
              Lobby
                Directory

            	
              17

            
	
              5.7

            	
              Repairs
                by Landlord

            	
              17

            
	 	 	 
	
              ARTICLE
                VI

            	 
	 	 	 
	
              INSURANCE,
                DAMAGE, AND CONDEMNATION

            	 
	 	 	 
	
              6.1

            	
              Indemnity
                and Hold Harmless

            	
              17

            
	
              6.2

            	
              Property
                Insurance by Landlord

            	
              18

            
	
              6.3

            	
              Property
                Insurance by Tenant

            	
              18

            
	
              6.4

            	
              Liability
                Insurance

            	
              18

            
	
              6.5

            	
              General
                Insurance Requirements

            	
              19

            
	
              6.6

            	
              Waiver
                of Subrogation

            	
              19

            
	
              6.7

            	
              Fire
                or Other Casualty

            	
              19

            
	
              6.8

            	
              Condemnation
                and Loss or Damage

            	
              20

            
	 	 	 
	
              ARTICLE
                VII

            	 
	 	 	 
	
              DEFAULT

            	 
	 	 	 
	
              7.1

            	
              Default
                by Tenant

            	
              20

            
	
              7.2

            	
              Holding
                Over

            	
              22

            
	
              7.3

            	
              Non-Waiver

            	
              22

            
	
              7.4

            	
              Attorney’s
                Fees

            	
              22

            
	
              7.5

            	
              Landlord’s
                Lien

            	
              23

            
	
              7.6

            	
              Default
                by Landlord

            	
              23

            
	
              7.7

            	
              Limitation
                on Liability of Landlord

            	
              24

            
	 	 	 
	
              ARTICLE
                VIII

            	 
	 	 	 
	
              GENERAL

            	 
	 	 	 
	
              8.1

            	
              The
                Landlord’s Mortgagee

            	
              21

            
	
              8.2

            	
              Estoppel

            	
              21

            
	
              8.3

            	
              Notice

            	
              21

            
	
              8.4

            	
              Parking

            	
              22

            
	
              8.5

            	
              Miscellaneous
                Provisions

            	
              22

            
	
              8.6

            	
              Anti-Terrorism
                Representations

            	
              24

            
	
              8.7

            	
              Other

            	
              25

            
	 	 	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              EXHIBIT
                “A”

            	
              DESCRIPTION
                OF LAND

            
	 	 
	
              EXHIBIT
                “B”

            	
              PLAT
                OF LEASED PREMISES

            
	 	 
	
              EXHIBIT
                “C”

            	
              BUILDING
                RULES AND REGULATIONS

            
	 	 
	
              EXHIBIT
                “D”

            	
              PARKING
                RULES AND REGULATIONS

            
	 	 
	
              EXHIBIT
                “E”

            	
              ADDITIONAL
                AGREEMENTS

            
	 	 
	
              EXHIBIT
                “F”

            	
              COMMENCEMENT
                DATE DECLARATION

            
	 	 
	
              EXHIBIT
                “G”

            	
              TENANT
                IMPROVEMENT/CONSTRUCTION AGREEMENT 

            
	 	 
	
              EXHIBIT
                “H”

            	
              ERISA
                PARTIES IN INTEREST LIST SEPARATE ACCOUNT
                R

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    LEASE
      AGREEMENT

     

    

      
        	
                THE
                  STATE OF TEXAS

              	
                §

              
	 	
                §

              
	
                COUNTY
                  OF TRAVIS

              	
                §

              

      

THIS
      LEASE AGREEMENT (“Lease”) is made and entered into as of the date indicated
      below by and between Connecticut
      General Life Insurance Company, a Connecticut corporation, on behalf of its
      Separate Account R
      (“Landlord”); Wintegra,
      Inc., a Delaware Corporation (“Tenant”).
      Subject to and upon the terms, provisions, and conditions set forth in this
      Lease, and each in consideration of the duties, covenants, and obligations
      of
      the other hereunder, Landlord does lease, demise, and let the Leased Premises
      (defined below) to Tenant, and Tenant does lease, demise, and take the Leased
      Premises from Landlord.

    

    

    WITNESETH:

    

    ARTICLE
      I

    

    DEFINITIONS

    

    Unless
      otherwise clearly indicated by the context, the following terms shall have
      the
      meanings specified below when they are used in the Lease:

    

    
      
        
          
            	
                  	1.1	
                    Leased
                      Premises and Related Terms.

                  

          

        

      

    

    

    The
      term
“Land” shall mean the real property described in Exhibit
      “A”
      which is
      attached to this Lease and incorporated by reference.

    

    The
      term
“Building” shall mean the Land and all improvements located on the Land,
      including the office and retail building and the parking Parking Areas now
      located on the Land.

    

    The
      term
“Leased Premises” shall mean the following described office space located within
      the Building:

    

    Approximately
      5,449 square feet of Net Rentable Area (defined below) being Suite 215, located
      on the 2nd.
      floor
      of the Building, as reflected on the floor plan(s) attached to and made a part
      of this Lease as Exhibit
      “B”.

    

    The
      term
“Net Rentable Area,” as used herein, shall mean: (i) in the case of a floor
      leased to a single tenant, all floor area measured from the inside surface
      of
      the outer glass line of the Building to the inside surface of the opposite
      outer
      glass line, excluding only Service Areas and General Common Areas (defined
      below), plus an allocation of the square footage of the General Common Areas;
      and (ii) in the case of a floor leased to more than one tenant, all floor areas
      within the inside surface of the outer glass line of the Building enclosing
      the
      Leased Premises and measured to the midpoint of demising walls {i.e., walls
      separating the Leased Premises from areas leased to or held for lease to other
      tenants, from On-Floor Common Areas (defined below) and from General Common
      Areas}, excluding only Service Areas, plus an allocation of the square footage
      of the General Common Areas and an allocation of the square footage of the
      On-Floor Common Areas. No deductions from Net Rentable Area shall be made for
      columns or projections necessary to the Building. The Net Rentable Area has
      been
      calculated based on BOMA standards.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
 

    “Service
      Areas” shall mean the areas within (and measured from the midpoint of the walls
      enclosing) the Building’s stairs, fire towers, elevator shafts, flues, vents,
      stacks, pipe shafts and vertical ducts. Areas for the specific use of Tenant
      and
      installed at the request of Tenant, such as special stairs or elevators, are
      not
      included within the definition of Service Areas.

    

    “General
      Common Areas” shall mean those areas within (and measured from the midpoint of
      the walls enclosing) the Building’s elevator machine rooms, main mechanical and
      electrical rooms, public lobbies, management office and other areas not leased
      or held for lease within the Building but which are necessary or desirable
      for
      the proper utilization of the Building or to provide customary services to
      the
      Building. The allocation of the square footage of the General Common Areas
      shall
      be equal to the total General Common Areas within the Building multiplied by
      a
      fraction, the numerator of which is the Net Rentable Area of the Leased Premises
      (excluding only the allocation of the General Common Areas) and the denominator
      of which is the Net Rentable Area (excluding only the General Common Areas)
      of
      all office space leased or held for lease in the Building.

    

    “On-Floor
      Common Areas” shall mean all areas within (and measured from the midpoint of the
      walls enclosing) public corridors, elevator foyers, restrooms, mechanical rooms,
      janitor closets, telephone and equipment rooms, and other similar facilities
      for
      use of all tenants on the floor on which the Leased Premises are located. In
      the
      case of a floor leased to more than one tenant, the allocation of the square
      footage of the On-Floor Common Areas on said floor shall be equal to the total
      On-Floor Common Areas on said floor multiplied by a fraction, the numerator
      of
      which is the Net Rentable Area of the portion of the Leased Premises (excluding
      the allocation of the General Common Areas and excluding the allocation of
      the
      On-Floor Common Areas) and the denominator of which is the Net Rentable Area
      (excluding the allocation of the General Common Areas and excluding the
      allocation of the On-Floor Common Areas) of all office space leased or held
      for
      lease on said floor.

    

    The
      Net
      Rentable Area of the Leased Premises has been calculated on the basis of the
      foregoing definition and a multi-tenant floor add-on factor of 15% and is
      stipulated to be 5,449 square feet.

    

    
      	
            	1.2	
              Lease
                Year.
                The term “Lease Year” shall mean the twelve (12) month period beginning
                January 1 and ending December 31 of the applicable calendar
                year.

            

    

    

    1.3    Base
      Operating Cost.
      The
      term “Base Operating Cost” shall mean the aggregate of all expenditures incurred
      by Landlord to maintain and operate the Building in a first class manner. All
      such expenses shall be determined in accordance with generally accepted
      accounting principles which shall be consistently applied. Base Operating Cost,
      as used in this Lease, shall mean all expenses, costs, and disbursements of
      every kind and nature which Landlord shall pay or become obligated to pay
      because of or in connection with the ownership and operation of the Building
      and
      the Parking Areas, including but not limited to, the following:

    

    (a) Wages,
      salaries and any ancillary expenses of all employees actually engaged in
      operation and maintenance of the Building and the Parking Areas, including
      taxes, insurance and benefits relating thereto.

    

    (b) All
      supplies and materials used in operation and maintenance of the Building and
      the
      Parking Areas.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    

    (c) Cost
      of
      all utilities for the Building and Parking Areas, including, but not limited
      to,
      electric, gas, water, heating lighting, air conditioning and ventilating the
      Building as provided pursuant to Article 5.2, below.

    

    (d) Cost
      of
      all maintenance, service, and operating agreements for the Building and Parking
      Areas and the equipment therein, including, but not limited to security service,
      window cleaning, elevator maintenance, landscaping, janitorial service and
      Parking Area operation.

    

    (e) The
      gross
      cost of casualty and liability insurance applicable to the Building and Parking
      Areas and Landlord’s personal property used in connection therewith as provided
      in Article VI below.

    

    (f) All
      taxes
      and assessments and governmental charges whether federal, state, county or
      municipal, and whether they be by taxing districts or authorities presently
      taxing the Leased Premises or by others, subsequently created or otherwise,
      and
      any other taxes and assessments attributable to the Building and Parking Areas
      or their operation, excluding, however, federal and state taxes on
      income.

    

    (g) Cost
      of
      repairs and general maintenance undertaken by Landlord in its sole discretion
      on
      or of the Building and Parking Areas (excluding only: (i) repairs and general
      maintenance to the structure, foundation, and exterior walls of the Building
      and
      Parking Areas; (ii) repairs and general maintenance paid by proceeds of
      insurance or by Tenant or other third parties; and (iii) alterations
      attributable solely to tenants of the Building other than Tenant).

    

    (h) Amortization
      of the cost of installation of capital investment items which are installed
      for
      the purpose of reducing operating expenses or which may be required by
      governmental authority. All such costs shall be amortized over the reasonable
      life of the capital investment item, together with interest at the rate of
      ten
      percent (10%) per annum on the unamortized balance, with the reasonable life
      and
      amortization schedule being determined in accordance with generally accepted
      accounting principles and in no event to extend beyond the reasonable life
      of
      the Building or Parking Areas. In the case of installations for the purpose
      of
      reducing operating expenses, Landlord at Tenant’s request shall provide cost
      justifications showing that the anticipated reduction in operating expenses
      is
      greater than the annual amortization amount related to the capital investment
      item.

    

    (i) All
      commercially reasonable management fees incurred by Landlord for the management
      of the Building and Parking Areas.

    

    (j) Landlord’s
      central accounting costs applicable to the Land, the Building and the Parking
      Areas, together with any costs incurred by Landlord to prepare any audit
      required pursuant to the terms of this Lease.

    

    (k) Any
      costs
      incurred by Landlord to furnish any specific service or repair required by
      Section 5.2 of this Lease.

    

    (l) Any
      and
      all other expenses paid in connection with the operation of the Building and
      the
      Parking Areas which are properly chargeable against the income
      therefrom.

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    Tenant,
      at Tenant’s option and expense, may audit
      Landlord’s accounts to substantiate any costs claimed.

    

    If
      any of
      the factors included in “Base Operating Cost” are not payable, billed, or
      otherwise due so as to allow an accurate calculation of said factors annually
      (e.g., ad valorem taxes and long-term contracts), Landlord, in its sole
      discretion, may estimate and prorate said factors on an annual basis, and said
      factors shall be properly adjusted by Landlord when they actually become due
      and
      payable.

    

    Notwithstanding
      any other provision in this Lease to the contrary, it is agreed that in the
      event the Building is not fully occupied during any calendar year or in the
      event the entire Building is not provided with Building standard services during
      any calendar year, an adjustment shall be made in computing such component
      of
      the Base Operating Cost for such year so that the actual operating expenses
      shall be computed for such year as though the Building had been fully occupied
      during such year and as though the entire Building had been provided with
      Building standard services during such year.

    

    Notwithstanding
      anything to the contrary in this Section 1.3, Base Operating Cost shall not
      include any costs incurred in the replacement of capital investment items except
      those made for the purposes of reducing operating expenses, nor Landlord’s home
      office expense nor specific costs specially billed to specific tenants nor
      commissions paid for the leasing or renting of space in the
      Building.

    

    1.4    Proportionate
      Share.
      Tenant’s “Proportionate Share” of the Base Operating Cost or other charges to be
      borne by Tenant in accordance with the terms hereof shall be the amount obtained
      by multiplying the total sum of such Base Operating Cost or other charges by
      the
      percentage obtained by dividing the Net Rentable Area in the Leased Premises
      (5,449) by the total number of square feet of Net Rentable Area in all office
      space leased or held for lease in the Building (149,894) (such percentage being
      referred to as Tenant’s “Pro Rata Share”). Tenant’s Pro Rata Share is stipulated
      to be 3.6%.

    

    1.5    Hazardous
      Materials.
      The
      term “Hazardous Materials” shall mean any substance, materials and wastes that
      are or become regulated, restricted or prohibited as hazardous, toxic or
      polluting substances under any applicable federal, state or local law,
      regulation, ordinance or order.

    

    ARTICLE
      II

    

    TERM

    

    2.1 Lease
      Term.
      Subject
      to and upon the terms and conditions set forth in this Lease, or in any exhibit
      attached hereto, the primary term of this Lease shall commence on the
“Commencement Date” as defined below, and shall terminate on the Last days of
      the 36 month of the Lease Term. The “Lease Term” of this Lease shall be the
      primary term specified in this Section 2.1, unless renewed or otherwise extended
      or earlier terminated pursuant to the terms and provisions of this Lease. The
      Commencement Date of this Lease shall be the date the Leased Premises are deemed
      to be ready for occupancy by Tenant upon the first to occur of (i) the date
      that
      there is delivered to Tenant a certificate of substantial completion of the
      improvements in and to the Leased Premises from Landlord’s architect, which
      certificate shall be binding and conclusive upon Tenant; or (ii) the date on
      which Tenant, or anyone claiming by, through or under Tenant, occupies any
      portion of the Leased Premises. Within five (5) days after the Commencement
      Date, Tenant will, at the request of Landlord, execute a Commencement Date
      Declaration in substantially the form attached hereto as Exhibit
      “F”.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    

    ARTICLE
      III

    

    RENT

    

    3.1    Rental
      Payments.

    

    (a) Commencing
      on the Commencement Date and continuing thereafter throughout the Lease Term,
      Tenant agrees to the Base Rental as described in Section 3.2, plus Tenant’s
      Forecast Additional Rental and Tenant’s Additional Rental as described in
      Section 3.3. The Base Rental together with Tenant’s Forecast Additional Rental
      shall be due and payable in equal monthly installments, in advance, on the
      first
      day of each calendar month during the Lease Term. Tenant agrees to pay such
      rent
      to Landlord at Landlord’s address for notice as provided herein (or such other
      address as may be designated by Landlord from time to time). If the term of
      the
      Lease is deemed to have commenced on a date other than the first date of a
      calendar month, the expiration date of the primary term shall be extended so
      as
      to give effect to the full term specified in 2.1 above in addition to the
      remainder of the calendar month during which the Lease is deemed to have
      commenced. 

    

    (b) If
      the
      Lease Term as described above commences on other than the first day of a
      calendar month or terminates on other than the last day of a calendar month,
      then the installments of Base Rental and Tenant’s Forecast Additional Rental for
      such month or months shall be prorated and the installment or installments
      so
      prorated shall be paid in advance. The payment for such prorated month shall
      be
      calculated by multiplying the monthly installment by a fraction, the numerator
      of which shall be the number of days of the Lease Term occurring during said
      commencement or termination month, as the case may be, and the denominator
      of
      which shall be the total number of days occurring in said commencement or
      termination month. Also, if the Lease Term commences or terminates on other
      than
      the first day of a calendar year, Tenant’s Additional Rental (defined below)
      shall be prorated for such commencement or termination year, as the case may
      be,
      by multiplying each by a fraction, the numerator of which shall be the number
      of
      days of the Lease Term during the commencement or termination year, as the
      case
      may be, and the denominator of which shall be 365, and the calculation described
      in Section 3.3(c) below shall be made as soon as possible after the termination
      of this Lease. Landlord and Tenant agree that the provisions relating to said
      calculation shall survive the termination of this Lease.

    

    (c) Tenant
      shall pay all rent and other sums of money as same shall become due from and
      payable by Tenant to Landlord under this Lease at the times and in the manner
      provided in this Lease, without demand, set-off or counterclaim.

    

    (d) Tenant
      shall pay all applicable bank charges incurred by Landlord plus Twenty-five
      and
      No/100 Dollars ($25.00) for each returned check. Tenant’s right to possession
      and all of Landlord’s obligations under this Lease are expressly contingent on
      the prompt payment of rent, and the use of the Leased Premises is obtained
      only
      on the condition that rent is paid on time. Payment of rent by Tenant shall
      be
      an independent covenant. In the event Tenant has not timely paid rent or other
      sums due on two or more occasions, or in the event a check is returned for
      insufficient funds or no account, Landlord may thereafter require that all
      rent
      and other sums due be paid by cashier’s check, certified check, or money order,
      without further notice.

    

    (e) In
      the
      event that Tenant fails to pay any installment of Base Rental, or any Additional
      Rental or other sums of whatever nature owed by Tenant to Landlord under this
      Lease within ten (10) days of the date such amount is due, there shall be added
      to such unpaid amount a late charge of ten percent (10%) of the past due amount
      in order to compensate Landlord for the extra administrative expenses associated
      with the collection of such late payment. Tenant agrees to pay Landlord interest
      on any past due amount owed under this Lease at the maximum lawful rate allowed
      by applicable law from the date due until paid.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    3.2    Base
      Rental.
      Throughout the Lease Term, Tenant shall pay to Landlord a base annual rental
      (“Base Rental”) in an amount of $9.10 Net Average per square foot of Net
      Rentable Area within the Leased Premises per year, or an amount as outlined
      below per calendar month commencing on the Commencement Date:

    

    
      	 	
              Months
                1- 36 

            	 	
              $9.10
                per square foot

            

    

    

    3.3    Additional
      Rental.

    

    (a) Commencing
      with the Lease Year in which the Commencement Date occurs and continuing
      thereafter for each Lease Year during the Lease Term, Landlord shall present
      to
      Tenant prior to the beginning of said Lease Year (or for the first Lease Year,
      prior to the commencement of said term) a statement of Tenant’s Forecast
      Additional Rental (defined below). In Landlord’s best estimate as of the date of
      this Lease, Tenant’s Forecast Additional Rental for the first Lease Year is
      estimated to be $8.90 per square foot of Net Rentable Area in the Leased
      Premises per year , which shall not be increased during the calendar year of
      2004. Tenant Agrees to pay Tenant’s Forecast Additional Rental according to the
      terms of Section 3.1 (that is, in equal monthly installments in advance).
“Tenant’s Forecast Additional Rental” shall mean Landlord’s reasonable estimate
      of Tenant’s Additional Rental (defined below).

    

    (b) “Tenant’s
      Additional Rental,” as used herein, shall mean for each Lease Year or partial
      Lease Years during the Lease Term, Tenant’s Pro Rata Share of the Base Operating
      Cost.

    

    (c) Within
      one hundred fifty (150) days after the end of the first Lease Year in which
      the
      Commencement Date occurs and of each Lease Year thereafter during the Lease
      Term, or as soon as possible thereafter, Landlord shall provide Tenant a
      statement showing the Base Operating Cost for said Lease Year and a statement
      prepared by Landlord comparing Tenant’s Forecast Additional Rental with Tenant’s
      Additional Rental for said Lease Year. In the event that Tenant’s Forecast
      Additional Rental exceeds Tenant’s Additional Rental for said Lease Year,
      Landlord shall pay Tenant (in the form of a credit against rentals next due)
      an
      amount equal to such excess. In the event that Tenant’s Additional Rental
      exceeds Tenant’s Forecast Additional Rental for said Lease Year, Tenant shall
      pay Landlord, within ten (30) days of receipt of the statement, an amount equal
      to such difference.

    

    3.4 First
      Month’s Rent and Security Deposit.
      At the
      time of execution of this Lease, Tenant shall pay in advance the first monthly
      installment of Base Rental and Tenant’s Forecast Additional Rental. On the same
      date, Tenant shall deposit with Landlord, an amount equal to $8,173.00 (the
      “Security Deposit”) as security for Tenant’s faithful performance of Tenant’s
      obligations herein contained. If Tenant defaults in any manner in the
      performance of Tenant’s obligations contained in this Lease, Landlord may use,
      apply or retain all or any portion of the Security Deposit for the payment
      of
      any rent, or other sum in default or for the payment of any other sum or expense
      to which Landlord may become obligated by reason of such default, or to
      compensate Landlord for any loss or damage which Landlord may suffer thereby.
      Landlord shall not be required to separately account for the Security Deposit
      nor to maintain an escrow or separate account therefor. If Tenant performs
      all
      of Tenant’s obligations under this Lease, the Security Deposit, or so much
      thereof as has not been applied by Landlord, shall be returned, without payment
      of interest or other increment for its use, to Tenant (or, at Tenant’s option,
      the last assignee, if any, of Tenant’s interest hereunder) within sixty (60)
      days after the expiration of the Lease Term, and after Tenant has vacated the
      Leased Premises. Landlord’s right to so apply the Security Deposit shall in no
      manner limit, impair or otherwise affect any of Landlord’s remedies set forth in
      this Lease.

    
      
        
        

      

      
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    ARTICLE
      IV

    

    TENANT’S
      DUTIES

    

    4.1    Use.

    

    (a) The
      Leased Premises are to be used and occupied by Tenant (and its permitted
      assignees and subtenants) solely for the purpose of general office use and
      for
      no other purpose.

    

    (b) Tenant
      agrees not to commit or suffer to be committed on the Leased Premises any
      nuisance or other act or thing against public policy or which violates any
      law
      or governmental regulation or which is disreputable or which may disturb the
      quiet enjoyment of any other tenant of the Building or Parking Areas of which
      the Leased Premises are a part.

    

    (c) Tenant
      will not use, occupy, or permit the use or occupancy of the Leased Premises
      for
      any unlawful, disreputable, immoral, or hazardous purpose; or maintain or permit
      the maintenance of any public or private nuisance; or do or permit any act
      or
      thing which may disturb the quiet enjoyment of any other tenant of the Building;
      or keep any substance or carry on or permit any operation which might emit
      offensive odors into other portions of the Building; or permit anything to
      be
      done which would increase the fire and extended insurance rate of the Building
      or contents or terminate the fire and extended insurance coverage. The Leased
      Premises shall not be used for any purpose which would tend to lower the
      first-class character of the Building, or create unreasonable elevator loads
      or
      otherwise interfere with standard Building operations, and Tenant shall not
      engage in any activity which is not in keeping with the standards of the
      Building.

    

    (d) Tenant
      shall not place, install, or operate on the Leased Premises or in any part
      of
      the Building any engine, refrigerating, heating, or air conditioning apparatus,
      stove, or machinery, or conduct mechanical operations, or place or use in or
      about the Leased Premises any inflammable, explosive, hazardous, toxic or
      odorous solvents or materials without the prior written consent of Landlord.
      No
      portion of the Leased Premises shall at any time be used for cooking, sleeping
      or lodging quarters.

    

    4.2    Repairs,
      Maintenance, and Cleaning.
      Tenant
      shall, at all times during the Lease Term and at Tenant’s sole cost and expense,
      keep the Leased Premises and every part thereof in a clean, attractive condition
      and in good repair. Tenant will not damage the Leased Premises or any other
      portions of the Building. Without limitation on any of the foregoing, Tenant
      hereby recognizes that the Building is a first-class office building and as
      a
      further inducement to Landlord to enter into this Lease, Tenant hereby covenants
      and agrees as follows:

    

    
      	 	
              (a)

            	
              Tenant
                will remove all rubbish and other debris from the Leased Premises
                at such
                times and to such locations as may be specified by Landlord from
                time to
                time and under conditions approved by
                Landlord.

            

    

    

    
      	 	
              (b)

            	
              Tenant
                will place no fixtures, furnishings, decorations, or equipment in
                the
                Leased Premises except such as are satisfactory to and, prior to
                being
                installed or placed therein, shall have been approved in writing
                by
                Landlord.

            

    

    
      
        
        

      

      
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    Landlord
      shall retain the right to monitor the performance of any such obligations.
      If
      Landlord determines that Tenant is in default of any of Tenant’s obligations
      under this Section 4.2 and if Tenant fails to cure such default within
      forty-eight (48) hours after Landlord has provided a written notice of such
      default to Tenant, then Landlord shall have the right to cause the same to
      be
      cured at Tenant’s expense, and Tenant shall reimburse Landlord for all costs
      incurred to cure such default plus a charge of fifteen percent (15%) within
      ten
      (10) days of Tenant’s receipt of Landlord’s statement for such costs. Tenant
      shall also be responsible for any damage or injury to any portion of the
      building which is caused by Tenant, Tenant’s agents, contractors, employees,
      invitees, or visitors, but such damage or injury shall be repaired or replaced
      only by Landlord, and Tenant shall repay to Landlord on demand the cost thereof
      (plus a charge of fifteen percent (15%). Upon the termination of this Lease,
      Tenant will surrender and deliver the Leased Premises in good order and repair
      and in the same condition as upon the commencement of this Lease, normal wear
      and tear and insured casualty loss excepted. Upon termination of this Lease,
      Landlord shall have the right to reenter and resume possession of the Leased
      Premises.

    

    4.3 Compliance
      with Laws; Americans With Disabilities Act.
      Tenant
      will comply with and shall cause its visitors, employees, contractors, agents
      and invitees to comply with all Federal, state, municipal and other laws,
      ordinances, rules, and regulations applicable to the Leased Premises and the
      business conducted therein by Tenant. Tenant shall forward to Landlord within
      five (5) days of their receipt copies of any notices received from any
      governmental authorities with respect to Tenant’s compliance or non-compliance
      with any such laws or rules. Tenant shall also comply with the requirements
      of
      any board of fire underwriters or other similar body now or hereafter
      constituted, with any occupancy certificate issued pursuant to any law by any
      public officer or officers, as well as the provisions of all recorded documents
      affecting the Leased Premises, insofar as any thereof relate to or affect the
      condition, use or occupancy of the Leased Premises. Notwithstanding any other
      provision in this Lease to the contrary, Landlord agrees to be responsible
      for
      the requirements effective as of this date under the Americans with Disabilities
      Act of 1990 (the “Act”) as it relates to (i) the initial build-out of the Leased
      Premises pursuant to this Lease, (ii) the Common Areas, (iii) the Parking Areas
      and (iv) structural Building items that Landlord is required to maintain under
      the terms of this Lease, but only to the extent that such requirements are
      “readily achievable” (as defined in the Act) and would apply to, and be imposed
      equally on, any use of the Leased Premises by a typical office space tenant
      in
      the Building, as opposed to being attributable to Tenant’s unique use occupancy,
      or layout of the Leased Premises, including, without limitation, the positioning
      of Tenant’s furnishings within such Leased Premises. Tenant, at Tenant’s sole
      cost and expense, shall be responsible for compliance with the Act within the
      Leased Premises. Landlord and Tenant agree to cooperate fully with each other
      to
      enable timely compliance with the provisions of this Section. Tenant will
      immediately forward to Landlord any notice Tenant receives regarding complaints,
      inquiries, or claims by any parties under the Act.

    
      
        
        

      

      
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    4.4    Assignment
      and Subletting.

    

    (a) Tenant
      shall not assign this Lease or sublet these Leased Premises or any part thereof,
      or mortgage, pledge or hypothecate its leasehold interest without the prior
      express written permission of Landlord, which permission shall not be
      unreasonably withheld, conditioned or delayed, and any attempt to do any of
      the
      foregoing without the prior express written permission of Landlord shall be
      void
      and of no effect. This Section 4.4 shall apply to the hypothecation of any
      of
      Tenant’s interest in the leasehold estate, including, but not limited to, sale
      of more than 50% of stock in a non-publicly traded corporate tenant and sale
      of
      more than 50% of a partnership interest in a partnership tenant. In the event
      Tenant should desire to assign this Lease or sublet the Leased Premises or
      any
      part thereof, Tenant shall give Landlord written notice (which shall specify
      all
      of the terms of said proposed sublease or assignment as well as the name and
      address of each proposed assignee or subtenant, and current and complete
      financial statements [including a balance sheet, income statement and copies
      of
      Federal tax returns for the previous three (3) years] of each proposed assignee
      or subtenant) of such desire at least sixty (60) days in advance of the date
      on
      which Tenant desires to make such assignment or sublease. Landlord shall then
      have a period of thirty (30) days following receipt of such notice within which
      to notify Tenant in writing that Landlord elects: (1) to terminate this Lease
      as
      to the space so affected as of the date so specified by Tenant in its notice,
      in
      which event Tenant will be relieved of all obligations hereunder as to such
      space; (2) to permit Tenant to assign this Lease or sublet such space for the
      duration specified by Tenant in its notice; or (3) to reject the proposed
      assignment or sublease, for reasonable cause, explained to Tenant. If Landlord
      should fail to notify Tenant in writing of such election within the thirty
      (30)
      day period, Landlord shall be deemed to have elected option (3) above. In
      addition, no space shall be listed or offered to any broker for listing or
      advertisement, nor shall Tenant advertise for subletting without prior written
      approval of Landlord.

    

    (b) If
      Landlord exercises its right as of the requested effective date of such
      assignment, sublease or other transaction to cancel and terminate this Lease
      as
      set forth in subparagraph (a) above, Landlord shall not be obligated to pay
      any
      consideration to effect such cancellation as to the portion of the Leased
      Premises and the term of Lease with respect to which Landlord has been requested
      to permit such assignment, sublease, or other transaction; and if Landlord
      elects to cancel and terminate this Lease as to the aforesaid portion of the
      Leased Premises and for the term proposed to be assigned or subleased, then
      the
      rent and other charges payable hereunder shall thereafter be proportionately
      reduced. In addition to the right of Landlord to withhold its consent to the
      assignment or subletting of the Leased Premises by Tenant as described in
      Section 4.4, Landlord shall be deemed to have reasonably withheld its consent
      to
      any assignment or subletting which would involve a different use of the Leased
      Premises, any material alteration of the Leased Premises or any impairment
      of
      Landlord’s security interest.

    

    (c) In
      any
      case where Landlord consents to an assignment or sublease of the leasehold,
      the
      undersigned Tenant will remain liable for the performance of all of the
      covenants, duties, and obligations in this Lease, including, without limitation,
      the obligation to pay all rent and other sums to be paid, and Landlord shall
      be
      permitted to enforce the provisions of this instrument against the undersigned
      Tenant and/or any assignee or sublessee without demand upon or proceeding in
      any
      way against any other person. In addition, if Landlord consents to such an
      assignment or sublease, Tenant shall enter into a written agreement with
      Landlord where it is agreed that any profit realized by Tenant as a result
      of
      said assignment or sublease (that is, after deducting all of Tenant’s costs
      associated therewith, including reasonable brokerage fees and the reasonable
      cost of remodeling or otherwise improving the Leased Premises for said assignee
      or sublessee) shall be payable to Landlord as it accrues as additional rent
      hereunder. If Tenant refuses to execute such written agreement, Landlord shall
      be deemed to have reasonably withheld its consent to the proposed assignment
      or
      sublease.

    
      
        
        

      

      
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    (d) In
      any
      case where Landlord consents to any such assignment, sublease, or other
      transaction, Landlord requires consent to sublease executed by Landlord, Tenant
      and Sublessee and may require that Tenant pay to Landlord a reasonable sum
      as
      attorney’s fees (attorney fees shall not exceed $750.00) or other fees and costs
      to change the lobby directory and tenant signage arising incident to such
      transaction, and that the assignee or subtenant pay Landlord a reasonable sum
      incurred by Landlord in moving the assignee or subtenant in and out of the
      Leased Premises should Landlord provide such assistance; however, Landlord
      shall
      have no obligation to provide such service.

    

    (e) Tenant
      shall give Landlord written notice of the consummation of any assignment or
      sublease consented to by Landlord; furnish to Landlord copies of all
      assignments, transfers, subleases and other documents executed in connection
      with such assignment or sublease; and notify Landlord in writing of the date
      the
      assignee or subtenant takes possession of the Leased Premises or a portion
      thereof.

    

    (f) Each
      sublessee or assignee shall fully observe all covenants of this Lease,
      including, without limitation, the use restrictions of this Lease and provisions
      of this Lease pertaining to Tenant signage and alteration of the Leased
      Premises, and no consent by Landlord to an assignment or sublease shall be
      deemed in any manner to be consent to a use not permitted under this Lease.
      Any
      consent by Landlord to a particular assignment or sublease shall not constitute
      Landlord’s consent to any other or subsequent assignment or sublease, and any
      proposed assignment or sublease by an assignee or sublessee of Tenant shall
      be
      subject to the provisions of this Section 4.4 as if it were a proposed
      assignment or sublease by Tenant.

    

    (g) As
      a
      condition precedent to any actual or deemed consent of Landlord to any
      assignment or subletting, Tenant shall cause the assignee or subtenant to take
      all action necessary to assure that the statutory and contractual Landlord’s
      liens apply to property of the subtenant or assignee to the same or greater
      extent, for the same or greater value of property, and with the same or better
      priority than Tenant’s property which is subject to such landlord’s liens.
      Tenant shall furnish a current UCC Search of the proposed subtenant or assignee
      and shall cause the assignee or subtenant to execute financing statements
      pursuant to the terms of this Lease.

    

    4.5    Rules
      and Regulations.
      Tenant
      shall perform, observe, and comply with the Rules and Regulations of the
      Building, as attached to and made a part of this Lease as Exhibit
      “C”
      and,
      upon written notice thereof to Tenant, any changes, amendments, or additions
      as
      from time to time shall be established and deemed advisable by Landlord for
      tenants of the Building. Landlord shall not have any liability to Tenant for
      any
      failure of any other tenant or tenants of the Building to comply with such
      Rules
      and Regulations. 

    

    4.6    Alterations
      by Tenant.

    

    (a) Tenant
      shall not make or allow to be made (except as otherwise specifically provided
      in
      this Lease) any alterations or physical additions (including fixtures) to be
      made in or to the Leased Premises, or place safes, vaults or other heavy
      furniture or equipment within the Leased Premises, without first obtaining
      the
      written consent of Landlord. Tenant shall deliver to Landlord a copy of the
      “as-built” plans and specifications for all alterations or physical additions
      made with the approval of Landlord in or to the Leased Premises. Tenant agrees
      specifically that no food, soft drink or other vending machine will be installed
      within the Leased Premises without the written consent of Landlord. Landlord
      shall retain the right to monitor the performance of any alterations or
      additions to the Leased Premises after the plans and specifications for same
      have been approved by Landlord.

    
      
        
        

      

      
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    (b) All
      alterations, physical additions or improvements in or to the Leased Premises
      (including fixtures) shall, when made, become the property of Landlord and
      shall
      be surrendered to Landlord upon termination of this Lease; provided, however,
      this clause shall not apply to movable trade fixtures, equipment or furniture
      owned by Tenant as long as Tenant restores the Leased Premises to its initial
      improved condition after the removal of any such property by
      Tenant.

    

    (c) Tenant
      shall indemnify and hold harmless Landlord from and against all costs (including
      attorneys’ fees and costs of suit), losses, liabilities or causes of action
      arising out of or relating to any alterations, additions or improvements made
      by
      Tenant to the Leased Premises, including, but not limited to, any mechanic’s or
      materialmen’s liens asserted in connection therewith.

    

    (d) Should
      any mechanic’s or other lien or liens be filed against any portion of the
      Building by reason of Tenant’s acts or omissions or because of a claim against
      Tenant, Tenant shall cause the same to be canceled or discharged of record
      by
      bond or otherwise within ten (10) days after notice by Landlord. If Tenant
      shall
      fail to cancel or discharge said lien or liens within said ten-day period,
      Landlord may, at its sole option, cancel or discharge the same and, upon
      Landlord’s demand, Tenant shall promptly reimburse Landlord for all costs
      incurred in canceling or discharging such liens.

    

    4.7    Taxes
      Payable By Tenant.
      In
      addition to all other sums to be paid by Tenant under this Lease, Tenant shall
      pay, before delinquency, any and all taxes levied or assessed during the Lease
      Term on inventory, equipment, furniture, fixtures and other personal property
      located in the Leased Premises, and shall reimburse Landlord upon demand for
      any
      and all taxes paid or payable by Landlord (other than state and federal personal
      or corporate income taxes measured by the net income of Landlord from all
      sources) whether or not now customary or within the contemplation of the parties
      to this Lease:

    

    (a) upon
      or
      with respect to the possession, leasing, operation, management, maintenance,
      alteration, repair, use or occupancy by Tenant of the Leased Premises, or any
      portion thereof;

    

    (b) upon,
      measured by or reasonably attributable to the cost or value of Tenant’s
      equipment, furniture, fixtures, inventory and other personal property located
      in
      the Leased Premises or the cost or value of any leasehold improvements within
      the Leased Premises; and

    

    (c) upon
      this
      transaction or any document to which Tenant is a party creating or transferring
      an interest or an estate in the Leased Premises.

    

    If
      it is
      not lawful for Tenant to reimburse Landlord for any of the foregoing taxes,
      the
      rental payable to Landlord under this Lease shall be revised to net to Landlord
      as would have been payable to Landlord before the imposition of any such
      tax.

    

    4.8 Condition
      of Leased Premises.
      Tenant
      has full knowledge of all matters pertaining to the Leased Premises, including,
      but not limited to, the condition of the tenant improvements therein.
      Accordingly, Tenant hereby acknowledges that it is leasing the Leased Premises
      on an “AS IS” basis in whatever physical condition the same may be, and Landlord
      makes no warranties of any kind or nature, express, implied, or otherwise,
      or
      any covenants of any kind or nature, in connection therewith. Tenant expressly
      waives and disclaims all representations, warranties (express or implied) and
      agreements not expressly set forth in this Lease, including but not limited
      to
      any implied warranty of suitability of the Leased Premises for the intended
      commercial use of Tenant.

    
      
        
        

      

      
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    4.9    Limits
      on Hazardous Materials.
      With
      respect to Hazardous Materials, Tenant hereby agrees that:

    

    (a) No
      activity will be conducted on the Leased Premises that will produce any
      Hazardous Materials;

    

    (b) The
      Leased Premises will not be used for the storage of any Hazardous Materials
      except for the temporary storage of minimal amounts of such materials that
      are
      used in the ordinary course of Tenant’s business, provided that such Hazardous
      Materials are properly stored in a manner and location meeting all applicable
      laws concerning Hazardous Materials and approved in advance and in writing
      by
      Landlord;

    

    (c) Tenant
      will not permit any Hazardous Materials to be brought on to the Leased Premises,
      except to the extent authorized in item (b) described above.

    

    If
      at any
      time during or after the Lease Term the Leased Premises is found to be
      contaminated by Hazardous Materials, Tenant agrees to indemnify and hold
      Landlord harmless from all claims, demands, actions, liabilities, costs,
      expenses, damages and obligations of any nature arising from or as a result
      of
      the breach of the provisions of this paragraph by Tenant. The foregoing
      indemnification shall survive the termination or expiration of this
      Lease.

    

    ARTICLE
      V

    

    LANDLORD’S
      RIGHTS AND DUTIES

    

    5.1    Right
      of Access by Landlord.
      Landlord or Landlord’s agents, employees or representatives may enter the Leased
      Premises during normal business hours, following reasonable notice (except
      in
      the case of a bona fide emergency or with Tenant’s consent), to (a) inspect the
      same, (b) exhibit the same to prospective purchasers, mortgagees or tenants,
      (c)
      determine whether Tenant is complying with all its obligations hereunder, (d)
      supply any service to be provided by Landlord to Tenant hereunder, (e) post
“for
      lease” signs of reasonable size upon the Leased Premises during the last six (6)
      months of the Lease Term, and (f) make repairs required of Landlord under the
      terms hereof or repairs and/or improvements to any adjoining space or utility
      services or make repairs, alterations or additions to any other portion of
      the
      Building as Landlord may deem necessary or proper for the safety, improvement,
      or preservation of the Leased Premises or of the Building, as a first class
      building. All such work shall be done as promptly as reasonably possible and
      so
      as to cause as little interference to Tenant as reasonably possible, but Tenant
      shall in no event be entitled to any abatement or reduction in rent by reason
      thereof. 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 Leased Premises resulting from any such actions by
      Landlord. Landlord shall at all times have and retain keys with which to unlock
      all of the doors in, on and above the Leased Premises (excluding Tenant’s
      vaults, safes and similar areas designated in writing by Tenant in advance)
      and
      Landlord shall have the right to use any and all means which Landlord may deem
      proper to open said doors in an emergency to obtain entry to the Leased
      Premises, and any entry to the Leased Premises obtained by Landlord by any
      of
      said means, or otherwise, shall not under any circumstances be construed or
      deemed to be a forcible or unlawful entry into or a detainer of the Leased
      Premises or an eviction, actual or constructive, of Tenant from the Leased
      Premises, or any portion thereof. Landlord shall also have, at all times, the
      keys and/or combination necessary to deactivate any on-Premises audible fire
      or
      burglary alarm system and Landlord shall have the right to turn off the audible
      alarm once it has sounded.

    
      
        
        

      

      
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    5.2    Services
      to be Provided by Landlord.
      Subject
      to the rules and regulations referred to below, Landlord shall furnish Tenant
      the following services during the Lease Term:

    

    (a) Air
      conditioning and heating, at such temperatures in such amounts, and at such
      times as are considered by Landlord to be standard office conditions for the
      Building during normal business hours for the Building which are 7:00 a.m.
      to
      6:00 p.m. Monday through Friday, and 8:00 a.m. to 12:00 noon Saturday, but
      not
      on Sundays and holidays. Overtime service for same shall be furnished to Tenant
      only upon the prior request of Tenant and Tenant shall bear the cost $35.00
      per
      hour per zone which is the standard hourly rate charged to other tenants in
      the
      Building. Tenant must request additional services 24 hours in advance or before
      12:00 noon on the business day before Tenant desires such service, or before
      12:00 noon on Fridays for service on Saturdays after 12:00 p.m., Sundays and
      Holidays.

    

    (b) Janitorial
      service in and about the Building and the Leased Premises, five days per week,
      and window washing, as determined by Landlord to be reasonable; provided,
      however, if Tenant’s floor coverings or other improvements are other than
      Building standard, Tenant shall pay the additional cleaning cost, if any
      attributable thereto, plus fifteen percent (15%) to cover cost of
      administration.

    

    (c) Proper
      facilities to furnish sufficient electrical power for building standard
      lighting, typewriters, dictating equipment, calculating machines, and other
      machines of similar low electrical consumption, but not including electricity
      required for electronic data processing equipment or special lighting in excess
      of building standard. Tenant shall pay to Landlord, monthly as billed, such
      charges as may be separately metered or as Landlord’s engineer may compute for
      any electrical service in excess of that stated above.

    

    (d) Water
      for
      drinking, lavatory, and toilet purposes.

    

    (e) Replacement
      of ballasts and fluorescent lamps in building standard ceiling-mounted fixtures
      installed by Landlord and incandescent bulb replacement in all public areas
      of
      the Building.

    

    No
      interruption, malfunction, diminution or termination of any services listed
      in
      Section 5.2, or elsewhere in this Lease, including any such interruption,
      malfunction, diminution or termination that may occur due to governmental
      regulations or utility policies, or in the event of Landlord’s decision to
      improve any space in the Building in general, so as to maintain the Building
      in
      a first class manner, shall constitute or be deemed to be a constructive
      eviction or disturbance of Tenant’s use, possession or commercial suitability of
      the Leased Premises or Building or a breach by Landlord of any of its
      obligations hereunder or render Landlord liable for damages (including loss
      of
      profits) or entitle Tenant to be relieved from any of its obligations hereunder
      (including Tenant’s independent obligation to pay rent) or grant Tenant any
      right of setoff or recoupment. In the event of any such interruption,
      malfunction, diminution or termination, however, Landlord shall use reasonable
      diligence to restore such service. In addition to the foregoing, should any
      of
      the equipment or machinery break down or for any cause cease to function
      properly, Tenant shall have no claim for rebate of rent or damages on account
      of
      an interruption in service occasioned thereby or resulting therefrom. Nothing
      in
      this Lease shall be construed to require Landlord to furnish telephone service
      of any kind or nature to Tenant.

    

    
      
        
        

      

      
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      5.3    Limited
        Patrol Service.
        Landlord shall provide limited patrol service for the Building seven (7)
        days
        per week, and Control Card Access Systems beginning after normal business
        hours
        at 6:00 p.m. on weekdays and on weekends. However, Landlord shall have no
        responsibility to prevent, nor have liability to Tenant or Tenant’s visitors,
        employees, contractors, agents and invitees for losses due to theft, burglary
        or
        criminal conduct of other persons, or damages done by persons gaining access
        to
        the Leased Premises, the Building or the Parking Areas, and Tenant releases
        Landlord from all liability relating thereto.

    

    

    5.4    Keys.
      Landlord shall furnish Tenant with two (2) keys for each corridor door entering
      the Leased Premises. Any additional keys will be furnished by Landlord at
      Tenant’s expense equal to its cost plus fifteen percent (15%) upon receipt of an
      order signed by Tenant or Tenant’s authorized representative. All such keys
      shall remain the property of Landlord. No additional locks shall be allowed
      on
      any door of the Leased Premises, and Tenant shall not make, or permit to be
      made, any duplicate keys, except those furnished by Landlord. Upon termination
      of this Lease, Tenant shall surrender to Landlord all keys to the Leased
      Premises, and give to Landlord the explanation of the combination of all locks
      for safes, safe cabinets, and vault doors, if any, in the Leased
      Premises.

    

    5.5    Tenant
      Identification and Signage.
      Landlord shall provide and install all Tenant identification on the entry door
      to the Leased Premises. All letters and numerals shall be in the standard
      graphics that are used throughout the Building. Only such standard graphics
      may
      be used in any public area or openings to public areas. Other Tenant signage
      visible within the Leased Premises, in the corridors or lobby of the Building
      or
      from the exterior of the Building will be allowed only with Landlord’s prior
      written approval, which Landlord shall have no obligation to grant.

    

    5.6    Lobby
      Directory.
      Landlord agrees to furnish a Lobby Directory Board Strip identifying Tenant
      on
      the Lobby Directory Board. The cost of any changes or additions thereafter
      will
      be charged to Tenant.

    

    5.7    Repairs
      by Landlord.
      Landlord shall maintain the structural components and the common areas of the
      Building in good repair and condition, but, unless otherwise expressly
      stipulated in this Lease, Landlord shall not be required to make any other
      repairs or improvements during the Lease Term.

    

    ARTICLE
      VI

    

    INSURANCE,
      DAMAGE, AND CONDEMNATION

    

    6.1    Indemnity
      and Hold Harmless.
      Landlord shall not be liable to Tenant, its agents, servants, employees,
      contractors, customers, or invitees, for any damage to persons or property
      caused by any negligence or willful misconduct of Tenant, its agents, servants,
      employees, contractors, customers, or invitees, and Tenant agrees to indemnify,
      defend and hold Landlord harmless from all liability and claims for any such
      damage. Tenant shall not be liable to Landlord, or to Landlord’s agents,
      servants, employees, contractors, customers or invitees for any damage to person
      or property caused by any negligence or willful misconduct of Landlord, its
      agents, servants, employees, contractors, customers, or invitees, and Landlord
      agrees to indemnify, defend and hold Tenant harmless from all claims for such
      damage. The preceding sentences shall apply only when the injury, death or
      damage is caused only by the negligence or willful misconduct of the indemnitor
      or when the cause is the concurrent result of the negligence or willful
      misconduct of the indemnitor, its agents, servants, employees, contractors,
      customers, or invitees or other third party and not of any negligence or willful
      misconduct of the indemnitee or its agents, servants, employees, contractors,
      customers or invitees. In any situation involving injury, death or damage
      resulting from the negligence or willful misconduct of the indemnitor and the
      indemnitee, or any of their agents, servants, employees, contractor, customers
      or invitees, each party as indemnitor shall indemnify the other party as the
      indemnitee to the extent, but only to the extent, of the liability attributable
      to its negligence or willful misconduct or the negligence or willful misconduct
      of its agents, servants, employees, contractors, customers or invitees. The
      foregoing indemnity obligations shall include reasonable attorney’s fees,
      investigation costs, court costs and all other reasonable costs and expenses
      incurred in connection with any claim or demand which is covered by the
      indemnities hereunder. Tenant agrees that all personal property upon the Leased
      Premises shall be at the risk of Tenant only, and that Landlord shall not be
      liable for any damage thereto or loss, theft or disappearance thereof. The
      provisions under this Lease shall survive the termination of this Lease with
      respect to any damage, injury or death occurring prior to such termination,
      or
      after such termination during any period during which Tenant is in possession
      of
      the Leased Premises or engaged in removing any property it is permitted to
      remove under this Lease.

    
      
        
        

      

      
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    6.2    Property
      Insurance by Landlord.
      Landlord shall maintain fire and extended coverage insurance on: (i) the
      structural components and common areas of the Building; and (ii) tenant finish
      improvements within the Leased Premises with a value of fifteen dollars ($15.00)
      per square foot of usable area within the Leased Premises (the “Covered Tenant
      Improvements”). Said insurance shall be maintained with any insurance company
      authorized to do business in the State of Texas, in amounts desired by Landlord
      and at the expense of Landlord and payment for losses thereunder shall be made
      solely to Landlord; subject, however, to the rights of the Mortgagees (defined
      below). If the annual premiums to be paid by Landlord shall exceed the standard
      rates because Tenant’s operations result in extra hazardous exposure, Tenant
      shall promptly pay the excess amount of the premium upon the request of
      Landlord.

    

    6.3    Property
      Insurance by Tenant.
      Tenant
      shall, at all times during the Lease Term, at its own expense, maintain a policy
      or policies of insurance with premiums fully paid in advance, insuring the
      following against loss or damage by fire, explosion, or other hazards and
      contingencies for the full insurable value thereof: (i) all of Tenant’s contents
      located in the Leased Premises, including, without limitation, trade fixtures,
      furnishings, equipment, and other items of personal property; and (ii) all
      tenant improvements within the Leased Premises with a total value in excess
      of
      the stated value for the Covered Tenant Improvements.

    

    6.4    Liability
      Insurance.
      Tenant
      shall, at Tenant’s expense, obtain, maintain, and keep in full force and effect
      during the Lease Term, commercial general liability insurance (including
      premises operation, bodily injury, personal injury, death, independent
      contractors, products, and completed operations, broad form contractual
      liability and broad form property damage coverages) in a combined single limit
      amount of not less than $3,000,000, against all claims, demands or actions
      with
      respect to damage, injury or death made by or on behalf of any person or entity,
      arising from or relating to the conduct and operation of Tenant’s business in,
      on or about the Leased Premises, or arising from or related to any act or
      omission of Tenant or any person within Tenant’s control. Whenever, in
      Landlord’s reasonable judgment, good business practice and changing conditions
      indicate a need for additional amounts or different types of insurance coverage,
      Tenant shall within thirty (30) days after Landlord’s request, obtain such
      insurance coverage, at Tenant’s expense.

    

    6.5    General
      Insurance Requirements.
      The
      policy or policies of insurance to be maintained by Tenant shall name Landlord,
      the Managing Agent, and the Mortgagees as co-insured and shall contain an
      endorsement that such policies cannot be canceled, amended or modified as to
      Landlord or the Mortgagees, if any, without thirty (30) days prior written
      notice to Landlord and the Mortgagees. Tenant shall deliver certificates of
      insurance in form satisfactory to Landlord not less than thirty (30) days prior
      to the expiration of the old policies. The insurance required under this Lease,
      shall be insured by such good and responsible companies qualified to do and
      doing business in the State of Texas as may be approved by Landlord, which
      approval shall not be unreasonably withheld. Each policy of insurance required
      to be carried under this Lease or a duplicate or certificate thereof, shall
      be
      delivered to Landlord for retention by it. If Tenant shall fail to insure or
      shall fail to furnish to Landlord any such policy, duplicate policy or
      certificate as required, Landlord may, from time to time, effect such insurance
      for the benefit of Tenant or Landlord, or both of them, for a period not
      exceeding one (1) year, and any premium paid by Landlord shall be recoverable
      from Tenant as additional rent on demand.

    
      
        
        

      

      
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    6.6    Waiver
      of Subrogation.
      Notwithstanding anything in this Lease to the contrary, Landlord and Tenant
      each
      waives any and all rights of recovery, claim, action, or cause of action,
      against the other, its agents, officers, or employees, for any loss or damage
      that may occur to the Leased Premises, or any improvements thereto, or said
      Building of which the Leased Premises are a part, or any improvements thereto,
      or any personal property of such party therein, by reason of fire, the elements,
      or any other cause which are insured against under the terms of standard fire
      and extended coverage insurance policies, regardless of cause or origin,
      including negligence of the other party to this Lease, its agents, officers,
      or
      employees, and covenants that no insurer shall hold any right of subrogation
      against such other party.

    

    6.7    Fire
      or Other Casualty.
      In the
      event of a fire or other casualty in the Leased Premises, Tenant shall
      immediately give notice thereof to Landlord. If the Leased Premises is partially
      damaged by fire or other casualty, whether or not such casualty is an insured
      or
      insurable risk, so as to render the Leased Premises untenantable in whole or
      in
      part, the rental provided for shall abate thereafter as to the portion of the
      Leased Premises rendered untenantable until such time as the Leased Premises
      are
      made tenantable as determined by Landlord, and Landlord agrees to commence
      and
      prosecute such repair work promptly and with all due diligence; provided,
      however, in the event such destruction results in the Leased Premises being
      untenantable in whole or in substantial part for a period reasonably estimated
      by a responsible contractor selected by Landlord to be one hundred twenty (120)
      days or longer after Landlord’s insurance settlement, or in the event of total
      or substantial damage or destruction of the Leased Premises or the remainder
      of
      the Building from any cause and if Landlord shall decide not to rebuild, then
      in
      either event all rent owed up to the time of such destruction or termination
      shall be paid by Tenant and thenceforth this Lease shall cease and come to
      an
      end. Landlord shall give Tenant written notice of its decisions, estimates
      or
      elections hereunder within sixty (60) days after receipt by Landlord of notice
      of settlement from Landlord’s insurance carrier. Notwithstanding anything
      contained in this Lease, Landlord shall only be obligated to restore or rebuild:
      (i) the structural components and common areas of the Building; and (ii) the
      Covered Tenant Improvements.

    

    6.8    Condemnation
      and Loss or Damage.
      If the
      Leased Premises or any part hereof shall be taken or condemned for any public
      purpose to such an extent as to render the remainder of the Leased Premises,
      in
      the opinion of Landlord, not reasonably suitable for Tenant’s occupancy, this
      Lease shall, at the option of either party, forthwith cease and terminate.
      All
      proceeds from any taking or condemnation of the Leased Premises shall belong
      to
      and be paid to Landlord, including any and all compensation, damages, income,
      rent, awards or any interest therein whatsoever which may be paid or made in
      connection therewith, and Tenant shall have no claim against Landlord for the
      value of any unexpired portion of the Lease Term. Notwithstanding the foregoing,
      nothing contained herein shall prevent Tenant from seeking a separate award
      from
      the condemning authority for any matters which will not interfere with or reduce
      any award to Landlord. In the event of a partial taking of the Leased Premises
      which does not result in a termination of this Lease, the Base Rental shall
      be
      reduced in the proportion that the area of the portion of the Leased Premises
      so
      taken bears to the total area of the Leased Premises before such taking.
      Landlord shall not be liable or responsible to Tenant for any loss or damage
      to
      any property or persons occasioned by theft, fire, act of God, public enemy,
      injunction, riot, strike, insurrection, war, court order, requisition or order
      of governmental body or authority, force majeure or any other cause beyond
      the
      control of Landlord, or for any damage or inconvenience which may arise through
      repair, alteration, or improvements of all or any part of the Building, or
      failure to make such repairs.

    
      
        
        

      

      
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    ARTICLE
      VII

    

    DEFAULT

    

    7.1    Default
      by Tenant.
      If (1)
      default is made in the payment of any sum to be paid by Tenant under this Lease
      (no notice being required for default in payment), (2) default is made in the
      performance of any of the other covenants or conditions which Tenant is required
      to observe and to perform under this Lease, and such non-monetary default shall
      continue for twenty (20) days after written notice to Tenant, (3) the interest
      of Tenant under this Lease is levied on under execution or other legal process,
      (4) any petition is filed by or against Tenant to declare Tenant bankrupt or
      to
      delay, reduce, or modify Tenant’s debts or obligations, (5) any petition is
      filed or other action taken to reorganize or modify Tenant’s capital structure,
      (6) Tenant is declared insolvent according to law, (7) any assignment of
      Tenant’s property is made for the benefit of creditors, (8) a receiver or
      trustee is appointed for Tenant or its property, (9) Tenant abandons the Leased
      Premises (which shall mean that Tenant is absent from the Leased Premises for
      ten (10) consecutive days), , then Landlord may treat the occurrence of any
      one
      or more of the foregoing events as a breach of this Lease (provided that no
      such
      levy, execution, legal process, or petition filed against Tenant shall
      constitute a breach of this Lease if Tenant shall vigorously contest the same
      by
      appropriate proceedings and shall remove or vacate the same within thirty (30)
      days from the date of its creation, service, or filing) and thereupon, at its
      option Landlord may have any one or more of the following described remedies
      in
      addition to all other rights and remedies provided at law or in
      equity:

    

    (a) Landlord
      may terminate this Lease and repossess the Leased Premises and be entitled
      to
      recover as damages a sum of money equal to the total of: (i) the cost of
      recovering the Leased Premises (including attorneys’ fees and costs of suit);
      (ii) the unpaid rent earned at the time of termination, plus interest thereon
      at
      the rate provided herein; (iii) the present value of the balance of the rent
      for
      the remainder of the term less the present value of the fair market rental
      value
      of the Leased Premises for said period; and (iv) any other sum of money and
      damages owed by Tenant to Landlord.

    

    (b) Landlord
      may terminate Tenant’s right of possession (but not the Lease) and may repossess
      the Leased Premises by forcible entry or detainer suit or otherwise, without
      demand or notice of any kind to Tenant and without terminating this Lease,
      in
      which event Landlord shall use reasonable efforts to relet the same for the
      account of Tenant for such rent and upon such terms as shall be satisfactory
      to
      Landlord. For the purpose of such reletting Landlord is authorized to decorate
      or to make any repairs, changes, alterations, or additions in or to the Leased
      Premises that may be necessary or convenient, and, if Landlord shall fail or
      refuse to relet the Leased Premises, then Tenant shall pay to Landlord as
      damages a sum equal to the amount of the rental reserved in this Lease for
      such
      period or periods, or, if the Leased Premises are relet and a sufficient sum
      shall not be realized from such reletting after paying the unpaid Base and
      Additional Rent due hereunder plus interest thereon at a maximum lawful rate,
      plus the cost of recovering possession, and all of the costs and expenses of
      such decorations, repairs, changes, alterations, and additions and the expenses
      of such reletting and of the collection of the rent accruing therefrom to
      satisfy the rent provided for in this Lease to be paid, then Tenant shall
      satisfy and pay any such deficiency upon demand therefor from time to time,
      and
      Tenant agrees that Landlord may file suit to recover any sums falling due under
      the terms of this paragraph from time to time, and that no delivery or recovery
      of any portion due Landlord hereunder shall be any defense to any subsequent
      action brought for any amount not theretofore reduced to judgment in favor
      of
      Landlord, nor shall such reletting be construed as an election on the part
      of
      Landlord to terminate this Lease unless a written notice of such intention
      be
      given to Tenant by Landlord. Notwithstanding any such reletting without
      termination, Landlord may at any time thereafter elect to terminate this Lease
      for such previous breach.

    
      
        
        

      

      
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    (c) At
      any
      time after an event of breach or default by Tenant has occurred, Landlord shall
      have the right to change or modify door locks on entry doors to the Leased
      Premises, and/or terminate all utility services to the Leased Premises, and
      such
      right to modify or change locks and/or terminate utility services shall continue
      so long as Tenant is in default hereunder. Landlord shall not be obligated
      to
      furnish Tenant with a new key or to allow Tenant to enter the Leased Premises,
      or to reinstate any terminated utility services until and unless Tenant has
      cured such default. Landlord may take such action as is required to cure any
      breach or default by Tenant hereunder and bill Tenant for any expenses incurred
      by Landlord in curing such breach, and Tenant shall be obligated to pay such
      bill immediately upon its receipt by Tenant.

    

    (d) Landlord
      shall have the right to cause a receiver to be appointed in any action against
      Tenant to take possession of the Leased Premises and/or to collect the rents
      or
      profits derived therefrom. The appointment of such receiver shall not constitute
      an election on the part of Landlord to terminate this Lease unless notice of
      such intention is given to Tenant.

    

    (e) After
      terminating this Lease or Tenant’s right to possession of the Leased Premises,
      Landlord may remove any and all personal property located in the Leased Premises
      and place such property in a public or private warehouse or elsewhere. Tenant
      shall reimburse Landlord for all costs of such removal and storage upon demand.
      Tenant waives all claims for damages that may be caused by Landlord’s removing
      or storing the property as herein provided, and Tenant shall indemnify and
      hold
      Landlord free and harmless from and against any and all damages, including
      without limitation all costs of court and attorney’s fees of Landlord occasioned
      thereby.

    

    (f) In
      addition to the other remedies provided in this Lease, Landlord shall be
      entitled, to the extent permitted by applicable law, to injunctive relief in
      case of the violation or attempted or threatened violation, of any of the
      provisions of this Lease, or to a decree compelling performance of any other
      provisions of this Lease, or to any other remedy allowed at law or in
      equity.

    

    7.2    Holding
      Over.
      In the
      event of holding over by Tenant after expiration or termination of this Lease
      without the written consent of Landlord, Tenant shall pay 150% of the rent
      (including all Base Rental and Additional Rental then payable) for the entire
      holdover period. No holding over by Tenant after the Lease Term shall operate
      to
      extend the Lease.

    

    7.3    Non-Waiver.
      Failure
      of Landlord to declare any default immediately upon occurrence thereof, or
      delay
      in taking any action in connection therewith, shall not waive such default,
      but
      Landlord shall have the right to declare any such default at any time and take
      such action as might be lawful or authorized hereunder, either in law or in
      equity.

    

    7.4    Attorney’s
      Fees.
      In the
      event either party defaults in the performance of any of the terms, agreements
      or conditions contained in this Lease and the other party places the enforcement
      of this Lease, or any part thereof, or the collection of any rent due or to
      become due hereunder, or recovery of the possession of the Leased Premises,
      in
      the hands of an attorney who files suit upon the same, and should such
      non-defaulting party prevail in such suit, the defaulting party agrees to pay
      the other party’s reasonable attorneys’ fees.

    
      
        
        

      

      
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    7.5    Landlord’s
      Lien.
      IN
      ADDITION TO THE STATUTORY LIEN, LANDLORD IS HEREBY GRANTED AND SHALL HAVE,
      AT
      ALL TIMES, A VALID SECURITY INTEREST UNDER THE UNIFORM COMMERCIAL CODE OF TEXAS
      (ARTICLE 9 OF THE BUSINESS AND COMMERCE CODE V.A.T.S.) TO SECURE PAYMENT OF
      ALL
      RENTALS AND OTHER SUMS OF MONEY BECOMING DUE UNDER THIS LEASE FROM TENANT,
      AND
      TO SECURE PAYMENT OF ANY DAMAGES OR LOSS WHICH LANDLORD MAY SUFFER BY REASON
      OF
      THE BREACH BY TENANT OF ANY COVENANT, AGREEMENT OR CONDITION CONTAINED HEREIN,
      UPON ALL GOODS, WARES, EQUIPMENT, FIXTURES, FURNITURE, IMPROVEMENTS AND OTHER
      PERSONAL PROPERTY OF TENANT PRESENTLY OR WHICH MAY HEREAFTER BE SITUATED ON
      THE
      LEASED PREMISES, AND ALL PROCEEDS THEREOF. TENANT SHALL NOT ALLOW SUCH PROPERTY
      TO BE REMOVED THEREFROM WITHOUT THE PRIOR WRITTEN CONSENT OF LANDLORD UNTIL
      ALL
      ARREARAGES IN RENT AS WELL AS ANY AND ALL OTHER SUMS OF MONEY THEN DUE OR TO
      ACCRUE AND BECOME DUE UNDER THIS LEASE TO LANDLORD SHALL FIRST HAVE BEEN PAID
      AND DISCHARGED AND ALL THE COVENANTS, AGREEMENTS AND CONDITIONS HEREOF HAVE
      BEEN
      FULLY COMPLIED WITH AND PERFORMED BY TENANT.
      Upon the
      occurrence of an event of default by Tenant, Landlord may, in addition to any
      other remedies provided herein, enter upon the Leased Premises and take
      possession of any and all goods, wares, equipment, fixtures, furniture,
      improvements and other personal property of Tenant situated on the Leased
      Premises, without liability for trespass or conversion, and sell the same at
      public or private sale, with or without having such property at the sale, after
      giving Tenant reasonable notice of the time and place of any public sale or
      of
      the time after which any private sale is to be made, at which sale Landlord
      or
      its assigns may purchase unless otherwise prohibited by law. Unless otherwise
      provided by law, and without intending to exclude any other manner of giving
      Tenant reasonable notice, the requirement of reasonable notice shall be met
      if
      such notice is given at least five (5) days before the time of any sale. The
      proceeds from any such disposition, less any and all expenses connected with
      the
      taking of possession, holding and selling of the property (including reasonable
      attorney’s fees and other expenses), shall be applied as a credit against the
      indebtedness secured by the security interest granted in this section. Any
      surplus shall be paid to Tenant or as otherwise required by law; and Tenant
      shall pay any deficiencies forthwith. Upon request by Landlord, Tenant agrees
      to
      execute and deliver to Landlord a financing statement in form sufficient to
      perfect the security interest created herein under the provisions of the Uniform
      Commercial Code in force in the State of Texas, or Landlord may file this Lease
      or a copy hereof as a financing statement. The statutory lien for rent is not
      hereby waived; on the contrary, the security interest herein granted shall
      be in
      addition to and supplementary of said statutory lien. Notwithstanding anything
      containing in this Section 7.5 to the contrary, Landlord agrees to subordinate
      its liens and security interest to any lender of Tenant which has a lien or
      shall be given a lien by Tenant on Tenant’s personal property.

    

    7.6    Default
      by Landlord.
      Tenant
      shall provide to Landlord written notice of any alleged breach or default by
      Landlord under this Lease, stating with specificity the nature of such alleged
      breach or default. Landlord shall not be considered to be in default hereunder
      unless Landlord fails to commence the cure of any such default within thirty
      (30) days after such written notice has been delivered to Landlord by Tenant
      or
      unless Landlord fails to pursue such cure to completion. In the event of any
      default by Landlord hereunder, Tenant’s exclusive remedy shall be an action for
      damages, and in consideration of the execution of the Lease by Landlord, Tenant
      waives any right to injunctive or other equitable relief.

    

    
      
        
        

      

      
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      7.7    Limitation
        on Liability of Landlord.
        Notwithstanding any provision herein to the contrary, Tenant shall look solely
        to the equity of Landlord in and to the Building in the event of breach or
        default by Landlord pursuant to the provisions of this Lease or any agreement
        or
        instrument executed in connection herewith, and Tenant agrees that the liability
        of Landlord under this Lease or any such agreement or instrument shall not
        exceed the value of such equity of Landlord in and to the Building. Without
        limitation to the foregoing, no properties or assets of Landlord other than
        the
        Building shall be subject to levy, execution, or other enforcement procedures
        for the satisfaction of any judgment (or other judicial process) arising
        out of
        or in connection with this Lease. If Tenant shall acquire a lien on any other
        properties or assets of Landlord by judgment or otherwise, Tenant shall promptly
        release such lien on such other properties and assets by executing,
        acknowledging and delivering to Landlord an instrument to that effect prepared
        by Landlord’s attorneys. This Lease is executed by a representative of Landlord
        solely in the representative capacity of such party, and not in such party’s own
        individual capacity. No owner, partner, joint venturer, shareholder,
        representative, advisor, trustee, director, officer, beneficiary, participant,
        or agent of Landlord shall be personally liable in any manner or to any extent
        under or in connection with this Lease.

    

    ARTICLE
      VIII

    

    GENERAL

    

    8.1    The
      Landlord’s Mortgagee.

    

    (a) This
      Lease and all rights of Tenant hereunder are subject and subordinate to any
      mortgage or mortgages and any deed or deeds of trust, blanket or otherwise,
      which are now or may hereafter be placed on the Land and the Building and any
      and all increases, renewals, modifications, consolidations, replacements and
      extensions of any of such mortgages and deeds of trust (any such instrument
      being a “Mortgage”). This provision shall be self-operative and no further
      instrument shall be required to effect such subordination of this Lease. Tenant
      shall, however, upon demand at any time or times, execute, acknowledge and
      deliver to Landlord any and all instruments and certificates that may be
      necessary or proper to more effectively document the subordination of this
      Lease
      and all rights of Tenant hereunder to any Mortgage or to confirm or evidence
      such subordination. If Tenant fails or neglects to execute, acknowledge, and
      deliver any such subordination instrument or certificate, Landlord, in addition
      to any other remedies it may have, may, as the agent and attorney-in-fact of
      Tenant, execute, acknowledge and deliver the same, and Tenant hereby irrevocably
      nominates, constitutes, and appoints Landlord as Tenant’s proper and legal agent
      and attorney-in-fact for such purpose. Tenant covenants and agrees, in the
      event
      of the foreclosure of or trustee’s sale under any Mortgage (“Foreclosure Sale”),
      to attorn to the purchaser upon any Foreclosure Sale, if so requested by such
      purchaser, and to recognize such purchaser as Landlord under this Lease. Tenant
      agrees to execute and deliver, at any time and from time to time, upon the
      request of Landlord or of any holder or holders of any Mortgage, any instrument
      or certificate which, in the sole judgment of Landlord or of such holder or
      holders, may be necessary or appropriate to evidence such
      attornment.

    

    (b) This
      Lease and all rights of Tenant hereunder are further subject and subordinate,
      to
      the extent that the same relate to the Premises, to all applicable ordinances
      of
      the City of Austin, Texas, relating to easements, franchises, and other
      interests or rights upon, across, or appurtenant to the Building or the
      Land.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    8.2    Estoppel.
      Tenant
      will, at such time or times as Landlord may request, sign a certificate stating
      whether this Lease is in full force and effect; whether any amendments or
      modifications exist; whether there are any defaults hereunder; and such other
      information and agreements as may be reasonably requested. Tenant shall sign
      and
      return any such certificate to Landlord within ten (10) days.

    

    8.3    Notice.
      All
      notices, demands and requests given under the terms of this Lease shall be
      in
      writing and shall be deemed to have been properly delivered as of the time
      of
      delivery if personally delivered, two (2) days after the time of deposit in
      the
      mail system if sent by United States certified mail, return receipt requested,
      and postage prepaid, or one (1) day after the time of delivery to Federal
      Express (or comparable express delivery system) if sent by such method with
      all
      costs prepaid. All notices, demands and requests shall be addressed as
      follows:

    

    LANDLORD:

    CGLIC/SAR

    c/o
      Trammell Crow Company

    8310
      Capital of Texas Highway North, Suite 150

    Austin,
      Texas 78731

    

    TENANT: 

    
      Wintegra,
        Inc.

    

    6850
      Austin Center Boulevard

    Austin,
      Texas 78731

    Attention:
      Trey Oprendek

    

    Copies
      of
      any notice required or permitted to be delivered by Landlord or Tenant, shall
      be
      simultaneously delivered to the Mortgagee, if any. No such notice shall be
      effective until copies have been dispatched to such Mortgagee in the manner
      provided above at the address given to Tenant in writing by the Mortgagee,
      or at
      any addresses subsequently designated for such Mortgagees under the procedure
      described above.

    

    8.4    Parking.
      During
      the initial Lease Term, Tenant shall have the right to eighteen (18) unreserved
      surface vehicle parking space(s) at no cost to the Tenant and three (3) reserved
      covered vehicle parking spaces in the Parking Areas at no cost to tenant.
      Landlord shall retain the right to control the parking of all vehicles
      (including but not limited to cars, and trucks, recreational vehicles, trailers,
      bicycles and motorcycles) and shall designate parking areas and building service
      areas. A copy of the current parking rules and regulations is attached to this
      Lease as Exhibit
      “D”.
      Visitor
      parking shall be free of charge during the lease term.

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
      8.5    Miscellaneous
        Provisions.

      

      (a) ENTIRE
        AGREEMENT; AMENDMENTS. This Lease, together with the Exhibits and Riders
        attached hereto, embody the entire contract between the parties of this Lease
        relative to the subject matter hereof, and this Lease supersedes and cancels
        any
        and all previous negotiations, arrangements, brochures, agreements and
        understandings if any between Landlord and Tenant, or displayed by Landlord
        to
        Tenant with respect to the subject matter of this Lease or the Building.
        There
        are no representations or warranties between Landlord and Tenant other than
        those contained in this Lease and all reliance with respect to any
        representations or warranties is solely upon the representations and warranties
        contained herein. This Lease may not be altered, changed, or amended, except
        by
        an instrument in writing signed by both parties to the Lease.

      

      (b) SEVERABILITY
        CLAUSE. If any clause or provision of this Lease is illegal, invalid, or
        unenforceable, under present or future laws effective during the term of
        this
        Lease, then it is the intention of the parties to this Lease that the remainder
        of this Lease shall not be affected thereby, and it is also the intention
        of
        both parties that, in lieu of each clause or provision that is illegal, invalid,
        or unenforceable, there be added as a part of this Lease a clause or provision
        as similar in terms to such illegal, invalid, or unenforceable clause or
        provision as possible but enforceable.

    

    

    (c) BINDING
      EFFECT. The provisions of this Lease shall be binding upon and inure to the
      benefit of the heirs, executors, administrators, successors, and assigns of
      the
      parties, but this provision shall in no way alter the restrictions in the Lease
      in connection with assignment and subletting by Tenant. Landlord shall have
      the
      right to transfer and assign, in whole or in part, all its rights and
      obligations hereunder and in the Building and property referred to in the Lease,
      and in such event, no further liability or obligation shall hereafter accrue
      against Landlord hereunder.

    

    (d) GOVERNING
      LAW. All rights and remedies of Landlord under this Lease shall be cumulative
      and none shall exclude any other rights or remedies allowed by law. This Lease
      is construed according to the laws of the State of Texas and is performable
      in
      Travis County, Texas. Further, the terms and provisions of this Lease shall
      not
      be construed against or in favor of a party hereto merely because such party
      is
      the “Landlord” or the “Tenant” hereunder or such party or its counsel is or was
      the draftsman of this Lease.

    

    (e) CAPTIONS.
      All paragraph captions in this Lease are for convenience only, and neither
      limit
      nor amplify the provisions of this Lease. 

    

    (f) NUMBER
      AND GENDER. The words “Landlord” and “Tenant” as used herein shall include the
      plural as well as the singular. If there be more than one Tenant, the
      obligations under this Lease imposed upon Tenant shall be joint and
      several.

    

    (g) TIME
      OF
      ESSENCE. Time is of the essence of this Lease and each and all of its
      provisions. 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.

    

    (h) FORCE
      MAJEURE. Whenever a period of time is prescribed for the taking of any action
      by
      Landlord, Landlord shall not be liable or responsible for, and there shall
      be
      excluded from the computation of such period of time, any delays due to strikes,
      riots, acts of God, shortages of labor or materials, war, governmental laws,
      regulations or restrictions, or any other cause whatsoever beyond the control
      of
      Landlord. 

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
      

      (i) SUBSTITUTION
        OF LEASED PREMISES. In the event Landlord determines to utilize all of the
        Leased Premises for another single tenant during the Lease Term, Tenant agrees
        to relocate to other space in the Building designated by Landlord, provided
        such
        other space is of equal or larger size than the Leased Premises, unless Tenant
        agrees to relocate to smaller space. If the relocation space is larger than
        Tenant’s Premises Tenant’s rental obligation shall not be increased over the
        amount Tenant would normally be obligated to pay under this lease for the
        Premises. The relocation space shall be, or made to be substantially the
        same
        configuration and finishes as the Premises. Landlord shall pay all reasonable
        out of pocket expenses of any such relocation, including but not limited
        to the
        expenses of moving and reconstruction of all Tenant finished and Landlord
        finished improvements, replacing telephone and computer cabling and related
        services, replacing a reasonable amount of paper products that have Tenant’s
        address on it . In the event of such relocation, this Lease shall continue
        in
        full force and effect without any change in the terms or conditions of this
        Lease, but with the new location substituted for the old location set forth
        in
        Section 1.1 of this Lease. Landlord shall be required to give Tenant a ninety
        day prior written notice of Landlord’s desire to relocate Tenant in accordance
        to this paragraph (i). 

      

      (j) LANDLORD
        ALTERATIONS OR MODIFICATIONS. Landlord shall have the right at any time to
        change the arrangement, character, use or location of entrances or passageways,
        doors, corridors, elevators, escalators, stairs, landscaping, toilets or
        any
        other portions of the Building, make additions or other modifications thereto,
        as Landlord shall deem appropriate, and to change the name or designation
        by
        which the Building is commonly known, and none of the foregoing shall be
        deemed
        an actual or constructive eviction of Tenant, entitle Tenant to any reduction
        of
        rent hereunder or result in any liability of Landlord to Tenant. Additionally,
        the description of the Leased Premises and the location of any duct work,
        electrical wiring, plumbing to other equipment and systems of the Building
        within the Leased Premises shall be subject to such minor changes as Landlord
        determines to be necessary or desirable in the course of the construction
        or
        maintenance of same, and no such changes shall invalidate or affect this
        Lease.

    (k) BROKERAGE.
      Tenant represents and warrants that Tenant has only dealt with Trammell Crow
      Company, Landlord’s exclusive Leasing Agent for Prominent Pointe/Northpoint
      Centre as broker in connection with this Lease and that, insofar as Tenant
      knows, no other broker negotiated this Lease or is entitled to any commission
      in
      connection herewith. Tenant shall indemnify and hold harmless Landlord from
      and
      against all claims (and costs of defending against and investigating such
      claims, whether meritorious or not) of any other brokers or similar parties
      claiming by, through, or under Tenant in connection with this Lease. Landlord
      shall pay Tenant’s exclusive leasing agent, BlueStone Partners, a commission
      under the terms of a separate agreement.

    

    (l) REPRESENTATIONS
      AND WARRANTIES BY TENANT. Tenant warrants to Landlord that: (a) the financial
      statements of Tenant furnished to Landlord are true and correct to the best
      of
      Tenant’s knowledge, (b) there has been no significant adverse change in Tenant’s
      financial condition since the date of the financial statements, (c) the
      financial statements fairly represent the financial condition of Tenant upon
      those dates and at the time this Lease is executed, (d) there are no delinquent
      taxes due and unpaid by Tenant, and (e) Tenant has never voluntarily or
      involuntarily been named as a debtor in any bankruptcy or involuntary
      proceedings. Tenant warrants that Tenant has disclosed in writing to Landlord
      all lawsuits pending or threatened against Tenant, and Tenant has made no
      material misrepresentation or material omission of facts regarding Tenant’s
      financial condition or business operations. Tenant acknowledges that Landlord
      has relied on the information and representations furnished by Tenant to
      Landlord and that Landlord would not enter into this Lease
      otherwise.

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    
      

      8.6    Anti-Terrorism
        Representations.

      

      [Tenant/Lessee]
        is not, and shall not during the term of the Agreement become, a person or
        entity with whom [Landlord/Lessor] is restricted from doing business with
        under
        the Uniting and Strengthening America by Providing Appropriate Tools Required
        to
        Intercept and Obstruct Terrorism Act of 2001, H.R. 3162, Public Law 107-56
        (commonly known as the “USA Patriot Act”) and Executive Order Number 13224 on
        Terrorism Financing, effective September 24, 2001 and regulations promulgated
        pursuant thereto (collectively, “Anti-Terrorism Laws”), including without
        limitation persons and entities named on the Office of Foreign Asset Control
        Specially Designated Nationals and Blocked Persons List (collectively
“Prohibited Persons).

      

      To
        the
        best of its knowledge, [Tenant/Lessee] is not currently engaged in any
        transactions or dealings, or otherwise associated with, any Prohibited Persons
        in connection with the use or occupancy of the demised premises. [Tenant/Lessee]
        will not in the future during the term of the Agreement engage in any
        transactions or dealings, or be otherwise associated with, any Prohibited
        Persons in connection with the use or occupancy of the demised
        premises.

      

      Breach
        of
        these representations constitutes a material breach of this Lease and shall
        entitle [Landlord/Lessor] to any and all remedies available thereunder, or
        at
        law or in equity.

    

    

    8.7    Other.

    

    (a) If
      Tenant
      is a corporation, partnership, limited liability company or other entity, Tenant
      warrants that all consents or approvals required of third parties (including,
      but not limited to, its Board of Directors, partners or managers, as
      appropriate) for the execution, delivery and performance of this Lease have
      been
      obtained and that Tenant has the right and authority to enter into and perform
      its covenants contained in this Lease.

    

    (b) Whenever
      in this Lease there is imposed upon Landlord the obligation to use its best
      efforts, reasonable efforts or diligence, Landlord shall be required to do
      so
      only to the extent the same is economically feasible and otherwise will not
      impose upon Landlord extreme financial or other burdens.

    

    (c) The
      waiver by Landlord of any agreement, condition or provision herein contained
      shall not be deemed to be a waiver of any subsequent breach of the same or
      any
      other agreement, condition or provision herein contained, nor shall any custom
      or practice which may grow up between the parties in the administration of
      the
      terms hereof be construed to waive or to lessen the right of Landlord to insist
      on the performance by Tenant in strict accordance with said terms. The
      subsequent acceptance of rental hereunder by Landlord shall not be deemed to
      be
      a waiver of any preceding breach by Tenant of any agreement, condition or
      provision of this Lease, other than the failure of Tenant to pay the particular
      rental so accepted, regardless of Landlord’s knowledge of such preceding breach
      at the time of acceptance of such rental.

    

    (d) It
      is
      expressly understood that Landlord does not, in any way or for any purpose,
      become a partner of Tenant in the conduct of its business, or otherwise, or
      joint venturer or a member of a joint enterprise with Tenant.

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

    EXECUTED
      in
      multiple counterparts, each of which shall have the force and effect of an
      original, as of the _____ day of _________________, 2004.

     

    
      	 	 	 
	 	LANDLORD:
	 	 
	 	CONNECTICUT
              GENERAL LIFE INSURANCE COMPANY, 
a Connecticut corporation, on behalf
              of its Separate Account R
	 
 	 
 	 
 
	Date: 	By:  	CIGNA
              Investments, Inc., its authorized agent
	 	 	 
	 	 	By:
              
	 	
              
                

              
Name:
	 	
              
                

              
Title:
	 	
              
                

              

            
	 	  

    

    
       

      
        	 	 	 
	 	TENANT:
	 	 
	 
 	 
 	 
Wintegra,
                Inc., a Delaware corporation
	 	        
                	 
	 	 	 
	 	 	By:
                
	 	
                
                  

                
Name:
	 	
                
                  

                
Title:
	 	
                
                  

                

              
	 	  

      

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “A”

    

    TO
      LEASE
      BETWEEN CGLIC/SAR AS LANDLORD

    AND
      WINTEGRA, INC. AS TENANT

    

    

    DESCRIPTION
      OF LAND

    

    

    Tract
      1:
      Lot three (3), Block A, “The Austin Center Phase Two-A”, a subdivision in Travis
      County, Texas, according to the map or plat of record in Volume 82, Pages
      243-244, Plat Records of Travis County, Texas.

    

    Tract
      2:
      Easement Estate created by that certain Easement Agreement by and between Austin
      Center Phase I, Ltd. and First City Bancorporation of Texas, Inc., dated
      September 24, 1982, recorded in Volume 7858, Page 23, of the Deed Records of
      Travis County, Texas, and being described by metes and bounds as
      follows:

    

    0.16
      ACRE
      OUT OF THE AUSTIN CENTER PHASE TWO-A, TRAVIS COUNTY, TEXAS, A SUBDIVISION
      RECORDED IN BOOK 82, PAGE 243 OF THE TRAVIS COUNTY PLAT RECORDS; SAID 0.16
      ACRE
      BEING A PORTION OF LOTS 3 AND 4 OF SAID SUBDIVISION; SAID 0.16 ACRE BEING MORE
      PARTICULARLY DESCRIBED AS FOLLOWS:

    

    BEGINNING
      at an iron rod found in the south line of Far West Boulevard, said point being
      the northwest corner of said Lot 3, same being the northeast corner of said
      Lot
      4, Block A of said Austin Center Phase Two-A;

    

    THENCE
      with said south line of Far West Blvd., S 59 degrees 43 minutes E, a distance
      of
      10.5 feet;

    

    THENCE
      leaving said south line of Far West Blvd. and crossing said Lot 3, the following
      two (2) courses:

    

    
      	
              1.

            	
              S
                30 degrees 17 minutes W, a distance of 197.0 feet
                and

            

    

    
      	
              2.

            	
              N
                59 degrees 43 minutes W, a distance of 10.0 feet to a point on the
                common
                line of said lots 3 and 4;

            

    

    

    THENCE
      leaving the said common line of Lots 3 and 4, the following two (2)
      courses:

    

    
      	
              1.

            	
              N
                59 degrees 43 minutes W, a distance of 26.0 feet;
                and

            

    

    
      	
              2.

            	
              N
                30 degrees 17 minutes E, a distance of 197.0 feet to a point on the
                said
                south line of Far West Blvd.;

            

    

    

    THENCE
      along said south line of Far West Blvd., S 59 degrees 43 minutes E, a distance
      of 26.0 feet to the POINT OF BEGINNING and containing 0.16 acres, more or
      less.

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “B”

    

    TO
      LEASE
      BETWEEN CGLIC/SAR AS LANDLORD

    AND
      WINTEGRA, INC. AS TENANT

    

    

    PLAT
      OF LEASED PREMISES

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “C”

    

    TO
      LEASE
      BETWEEN CGLIC/SAR AS LANDLORD

    AND
      WINTEGRA, INC. AS TENANT

    

    

    BUILDING
      RULES AND REGULATIONS

    

    1. All
      Tenants will refer all contractors, representatives and installation technicians
      who are to perform any work within the Building to Landlord for Landlord’s
      supervision, approval and control before the performance of any such work.
      This
      provision shall apply to all work performed in the Building including, but
      not
      limited to, installations of telephones, telegraph equipment, electrical devices
      and attachments, any and all installations of every nature affecting floors,
      walls, woodwork, trim, windows, ceilings, equipment and any other physical
      portion of the Building. Tenant shall not mark, paint, drill into, or in any
      way
      deface any part of the Building or the Leased Premises, except with prior
      written consent of the Landlord, and as the Landlord may direct.

    

    2. The
      work
      of the janitorial or cleaning personnel shall not be hindered by Tenant after
      5:30 p.m., and such work may be done at any time when the offices are vacant.
      The windows, doors, and fixtures may be cleaned at any time. Tenant shall
      provide adequate waste and rubbish receptacles, cabinets, book cases, map cases,
      etc., necessary to prevent unreasonable hardship to Landlord in discharging
      its
      obligations regarding cleaning service.

    

    3. Any
      permitted movement of furniture or office equipment in or out of the Building,
      or dispatch or receipt by Tenant of any heavy equipment, bulky material, or
      merchandise which requires use of elevators or stairways, or movement through
      the Building’s service dock or lobby entrance shall be restricted to such hours
      as Landlord shall designate during normal business hours. All such movement
      shall be in a manner to be agreed upon between Tenant and Landlord in advance.
      None of the Tenant’s office furniture or equipment, or the office furniture or
      equipment of any other person, firm or entity occupying Tenant’s Leased Premises
      may at any time remove such office furniture or equipment from the Leased
      Premises until all arrearages in rent as well as any and all other sums of
      money
      then due and to become due under the Lease have been paid to Landlord or
      otherwise discharged and all of the covenants, agreements and conditions of
      the
      Lease have been fully complied with and performed by the Tenant. Tenant shall
      initiate such prior arrangements. The time, method, and routing of movement
      and
      limitations for safety or other concern which may prohibit any article,
      equipment, or other item from being brought into the Building shall be subject
      to Landlord’s discretion and control. Any hand trucks, carryalls, or similar
      appliances used for the delivery or receipt of such merchandise or equipment
      shall be equipped with rubber tires, side guards, and such other safeguards
      as
      the Building shall require. Although Landlord or its personnel may participate
      in or assist in the supervision of such movement, Tenant assumes final
      responsibility for all risks as to damage to articles moved and injury to
      persons or persons engaged in such movement, including equipment, property
      and
      personnel of Landlord if damaged or injured as a result of acts in connection
      with carrying out this service for Tenant, from the time of entering the
      property to completion of work. Landlord shall not be liable for the acts of
      any
      person engaged in, or any damage or loss to any of said property or persons
      resulting from any act in connection with such service performed by
      Tenant.

    

    4. No
      signs
      of any kind or nature, symbol, or identifying mark shall be put on the Building,
      in the halls, elevators, staircases, entrances, parking areas or upon the doors
      or walls, whether plate glass or otherwise, of the Leased Premises nor within
      the Leased Premises so as to be visible from the public areas or exterior of
      the
      Building, without prior written approval of Landlord. All signs or lettering
      shall conform in all respects to the sign and/or lettering criteria established
      by Landlord.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    

    5. Tenant
      shall not make or permit any loud or improper noises in the Building or
      otherwise interfere in any way with other tenants.

    

    6. Landlord
      will not be responsible for any lost or stolen personal property or equipment
      from the Leased Premises or public areas, regardless of whether such loss occurs
      when the area is locked against entry or not.

    

    7. Tenant,
      or the employees, agent, servants, visitors, or licensees of Tenant shall not,
      at any time or place, leave or discard rubbish, paper, articles, or objects
      of
      any kind whatsoever outside the doors of the Leased Premises or in the corridors
      or passageways of the Building. No animals (other than seeing-eye dogs which
      accompany visually handicapped persons), bicycles or vehicles of any description
      (other than wheelchair or motorized carts used by physical handicapped persons)
      shall be brought into or kept in or about the Building.

     

    8. No
      additional lock or locks shall be placed by Tenant on any door in the Building
      unless written consent of Landlord shall have first been obtained. Two (2)
      keys
      will be furnished by Landlord for the Leased Premises, and any additional key
      required must be obtained from Landlord at Tenant’s expense. A reasonable charge
      will be made for each additional key furnished. All keys shall be surrendered
      to
      Landlord upon termination of tenancy.

    

    9. None
      of
      the entries, passages, doors, hallways, or stairways in the Building shall
      be
      blocked or obstructed.

    

    10. Landlord
      shall have the right to determine and prescribe the weight and proper position
      of any unusually heavy equipment, including computers, safes, large files,
      etc.,
      that are to be placed in the Building, and only those which in the exclusive
      judgment of the Landlord will not do damage to the floors, structure and/or
      elevators may be moved into the Building. Any damage caused by installing,
      moving or removing such aforementioned articles in the Building shall be paid
      by
      Tenant.

    

    11. All
      Christmas and other decorations must be constructed of flame retardant
      materials.

    

    12. Tenant
      shall provide Landlord with a list of all personnel authorized to enter the
      Building after hours (6:00 p.m. to 6:00 a.m., Monday through Friday, and 24
      hours a day on weekends and holidays).

    

    13. Anyone
      entering or leaving the Building after hours, as set forth in Paragraph 12,
      must
      sign his name, company, suite number, and time on the Building Register and,
      if
      requested, show proper identification.

    

    14. Any
      air
      conditioning/heating required during the periods of 6:00 p.m. to 7:00 a.m.
      Monday through Friday, 12 Noon to 12 Midnight Saturday, and 24 hours a day
      Sundays and holidays shall be accessed by Tenant using the Building’s
      computerized system for such overtime services. Tenant shall be charged the
      prevailing hourly rate for such additional heating or air
      conditioning.

    

    15. Any
      furniture or equipment removed from the Building after hours must be listed
      on
      the Building Register. Description and serial numbers should be included.
      Passout orders on Tenant’s stationery must be surrendered to the security
      officer in the lobby when any articles are being removed from the
      Building.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    

    16. The
      freight elevator shall be used to handle packages and shipments of all kinds.
      Passenger elevators shall not be used for this purpose. The freight elevator
      is
      available to handle such deliveries twenty-four (24) hours a day, seven (7)
      days
      a week, subject to availability and coordination with either the Building
      Manager’s Office or Building Security. Parcel Post, express, freight, or
      merchant’s deliveries can also be made any time during these hours. Exclusive
      use of the freight elevator must be made by previous arrangement with the
      Building Manager’s Office. Use of the freight elevator for furniture is limited
      to after hours on week days and on week-ends and must
      be
      coordinated with the Building Manager’s Office. All use of the freight elevator
      is provided by card key access. Advance notice of arriving or departing
      shipments will enable the Building Manager and Building Security to give better
      assistance.

    

    17. Names
      to
      be placed on or removed from the Directory Board in the lobby of the Building
      should be furnished to the Building Manager in writing on Tenant’s
      letterhead.

    

    18. Any
      additional services as are routinely provided to Tenants, not required by the
      Lease to be performed by Landlord, which Tenant requests Landlord to perform,
      and which are performed by Landlord, shall be billed to Tenant at Landlord’s
      cost plus 15%, and Tenant shall pay such bill on the next maturing date as
      an
      installment of Base Rental.

    

    19. All
      doors
      leading from public corridors to the Leased Premises are to be kept closed
      when
      not in use.

    

    20. Canvassing,
      soliciting, or peddling in the Building is prohibited and Tenant shall cooperate
      to prevent the same.

    

    21. Tenant
      shall give immediate notice to the Office of the Building in case of accidents
      in the Leased Premises or in the Building or of defects therein or in any
      fixtures or equipment, or of any known emergency in the Building.

    

    22. Tenant
      shall not use the Leased Premises or permit the Leased Premises to be used
      for
      photographic, multilith, or multigraph reproductions, except in connection
      with
      its own business.

    

    23. The
      requirements of Tenant will be attended to only upon application at the Office
      of the Building. Employees of Landlord shall not perform any work or do anything
      outside of their regular duties, unless under special instructions from the
      Office of the Building.

    

    25. Tenant,
      or the employees, agents, servants, visitors, or licensees of Tenant, shall
      abide by the rules and regulations for the Parking Areas.

    

    26. Tenant
      shall not allow to pass into any sewer, drain or toilet serving the Leased
      Premises or located in the Building any oil, grease, or any other deleterious
      effluent or substance which may cause an obstruction in or damage to such sewer,
      drain or toilet.

    
 

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    

    27. Landlord
      reserves the right to rescind any of these Rules and Regulations of the
      Building, and to make such other and further rules and regulations as in its
      judgment shall from time to time be needful for the safety, protection, care
      and
      cleanliness of the Building, the Leased Premises, and the Parking Areas, the
      operation thereof, the preservation of good order therein, and the protection
      and comfort of the other tenants in the Building and their agents, employees,
      and invitees, which rules and regulations, when made and written notice thereof
      is given to Tenant, shall be binding upon Tenant in like manner as if originally
      herein prescribed. Any waiver or non-application of any of these Rules and
      Regulations as to a tenant or as to a particular occurrence or event shall
      not
      be, nor be deemed to be, nor operate as a waiver or invalidation of any of
      the
      rules and regulations to any other tenant or to any tenant respecting any other
      occurrence or event, whether similar or dissimilar.

     

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      “D”

    

    TO
      LEASE
      BETWEEN CGLIC/SAR AS LANDLORD

    AND
      WINTEGRA, INC. AS TENANT

    

    PARKING
      RULES AND REGULATIONS

    

    It
      is the
      desire of Landlord to maintain and operate the parking areas in an orderly
      manner. Cooperation by all tenants will be sincerely appreciated. The following
      rules and regulations apply to all tenants in the Building and their agents,
      employees, family, licensees, invitees, visitors, and contractors unless
      otherwise stated.

    

    Landlord
      reserves the right to rescind these rules, make reasonable changes, or make
      other reasonable rules and regulations for the safety, care, and cleanliness
      of
      the parking and for the preservation of good order.

    

    1. Traffic
      Signs.
      All
      persons parking in the parking areas shall observe posted signs and markings
      regarding speed, stop signs, traffic lanes, reserved parking, no parking,
      stripes separating parking spaces, etc.

    

    2. Control
      Devices.
      Landlord reserves the right to install or utilize any reasonable system of
      entry
      and exit control devices, tenant identification cards, or vehicle identification
      cards or stickers; and all persons parking in the parking areas shall comply
      with such system. Landlord may make reasonable charges for replacement of
      control device cards or other parking identification cards which are lost or
      damaged.

    

    3. Trash.
      All
      persons parking in the parking areas shall refrain from throwing trash, ashtray
      contents, or other debris on the parking areas.

    

    4. Flat
      Tires.
      All
      vehicle owners and all persons parking in the parking areas shall be responsible
      for promptly repairing flat tires or other conditions of the vehicle which
      cause
      unsightliness in the reasonable judgment of Landlord.

    

    5. Removal
      of Unauthorized Vehicles.
      If
      vehicles are blocking driveways or passageways or parked in violation of these
      rules and regulations or state statutes, Landlord may exercise vehicle removal
      remedies under Article 6701g-1 and 6701g-2 upon compliance with statutory
      notice.

    

    6. Security.
      Landlord shall use reasonable diligence in the maintenance of existing lighting
      in the parking areas. Landlord shall not be responsible for additional lighting
      or further security measures in the parking areas.

    

    7. Timely
      Payment of Parking Rent.
      Tenant
      shall be entitled to monthly parking rights in the parking areas pursuant to
      Section 8.5 of the Lease and, only upon timely payment of the then current
      monthly parking rent, for visitor parking validation. Failure of Tenant to
      pay
      the same by the due date shall constitute a default by Tenant under the
      Lease.

    

    

    

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      “E”

    

    TO
      LEASE
      BETWEEN CGLIC/SAR AS LANDLORD AND

    WINTEGRA,
      INC. AS TENANT

    

    

    ADDITIONAL
      AGREEMENTS

    

    

    Renewal
      Option(s).
      Tenant
      shall have the right and option to renew this Lease one (1) additional terms
      of
      one (1) year by delivering written notice of the exercise thereof to Landlord
      at
      least one hundred eighty (180) days prior to the expiration of the lease term,
      provided that at the time of any such notice and at the commencement of any
      such
      extended lease term Tenant is not in default hereunder. Upon the delivery of
      said notice and subject to the conditions set forth in the preceding sentence,
      this Lease, including any Expansion Space taken during the primary lease term,
      shall be extended upon the same terms, covenants and conditions as provided
      in
      this Lease except as follows:

    

    
      	 	
              (a)

            	
              The
                Basic Rental and Additional Rental combined shall equal $24.00 per
                square
                foot on an annual basis, at the commencement of such extended
                term.

            

    

    

    
      	 	
              (b)

            	
              Tenant
                shall have no further renewal options unless expressly granted by
                Landlord
                in writing.

            

    

    

    
      	 	
              (c)

            	
              Tenant
                shall not have the right to assign its renewal rights to any sublessee
                of
                the leased premises or assignee of the
                Lease.

            

    

    

    Notwithstanding
      the foregoing, Tenant’s renewal option may not be exercised at any time after
      Tenant, with or without the consent of Landlord, assigns or sublets all or
      any
      portion of this Lease. Nothing herein shall imply that Tenant may assign or
      sublet all or any portion of this Lease or the Premises without the prior
      written consent of Landlord.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      “F”

    

    TO
      LEASE
      BETWEEN CGLIC/SAR AS LANDLORD

    AND
      WINTEGRA, INC. AS TENANT

    

    

    COMMENCEMENT
      DATE DECLARATION

    

    THIS
      COMMENCEMENT DATE DECLARATION is furnished by CGLIC/SAR (the “Landlord”) and
      pertains to that certain Lease Agreement dated ___________ ____ , 2004 (the
      “Lease”) with _____________________ (the “Tenant”) under which Tenant has leased
      from Landlord certain space (the “Leased Premises”) known as Suite ________ in
      the building commonly known as Northpoint Centre in the City of Austin, Texas
      (the “Building”), such Leased Premises being more particularly described in the
      Lease. Unless otherwise stated, the terms used in this Commencement Date
      Declaration shall have the same definitions as terms used in the
      Lease.

    

    The
      undersigned Tenant does hereby certify as follows:

    

    1. The
      Lease
      has not been amended, modified or supplemented and is in full force and effect
      as originally executed, except for the following amendments or
      modification:

    

    ________________________________________________________

    

    ________________________________________________________

    
 

    2. Tenant
      is
      in possession of the Leased Premises, having entered into occupancy of the
      Leased Premises on ________________ and is paying the full rent called for
      in
      the Lease. The Commencement Date of the Lease Term was _______________, with
      the
      result that the Lease Term will expire ________________, unless sooner
      terminated as provided in the Lease, or unless extended, in the event that
      the
      Lease contains any right or privilege of extension.

    

    3. The
      next
      payment of rent due under the Lease is due on _____________________, in the
      amount of $_____________.

    

    4. The
      Lease
      represents the entire agreement between Landlord and Tenant relating to the
      lease of the Leased Premises and no payments between Landlord and Tenant have
      been made or are to be made except as provided in the Lease.

    

    5. Tenant
      has not made any prepayment of rent or other charges in advance, except for
      the
      current monthly payments, or payment of rent for the next ensuing month and
      security deposits, if any, provided for in the Lease. No rent payments will
      be
      made more than one month in advance except as approved by
      Landlord.

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    

    

    EXECUTED
      as of the ______ day of ____________, 200__, in any number of counterpart
      copies, each of which counterpart shall be deemed an original for all
      purposes.

     

    
      
        	LANDLORD:	 	 	TENANT:
	 	 	 	 
	
                Connecticut
                  General Life Insurance Company, 

                on
                  behalf of its Separate Account R

              	 	 	 
	 	 	 	 
	By: CIGNA Investments, Inc., its authorized
                agent	 	 	 
	 	 	 	 
	
              	 	 	
              
	By:
                ________________________________

Name:
                ______________________________

Title:
                _______________________________	 	 	By:
                ________________________________

Name:
                ______________________________

Title:
                _______________________________

      

     

    

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “G”

    

    TO
      LEASE
      BETWEEN CGLIC/SAR AS LANDLORD

    AND
      WINTEGRA, INC. AS TENANT

    

    

    

    Tenant
      Improvement/Construction Agreement

    

    

    This
      Tenant Improvement/Construction Agreement (this “Construction Agreement”) is
      attached to and made a part of the Lease Agreement by and between Landlord
      and
      Tenant, and pertains to the design and construction of, and allowances for,
      certain improvements (the “Tenant Improvements”) in and to Tenant’s Leased
      Premises located on the second floor of the Building. All capitalized terms
      not
      defined in this Construction Agreement shall have the same meanings as used
      in
      the Lease.

    

    For
      and
      in consideration of the premises, agreements, duties, covenants, obligations
      and
      other undertakings of each party to the other provided for in the Lease and
      in
      this Construction Agreement, Landlord and Tenant agree as follows:

    

    1.
      Design
      Services.
      Landlord shall provide Tenant with mechanical and architectural design services
      for a building standard level of Tenant Improvements, including a complete
      set
      of plans and specifications (the “Construction Documents”). Tenant has furnished
      Landlord with all information necessary for the preparation of the initial
      Construction Documents. The space plan that is here in attached to Exhibit
      G-1
      reflects the Tenant Improvements that Landlord and Tenant have mutually agreed
      to. Landlord has prepared and delivered a preliminary estimate for the costs
      to
      construct the improvements illustrated in the floor plan on Exhibit G-1 .
      Landlord will complete competitive bidding of the Construction Documents to
      determine the actual construction cost. Tenant will inform Landlord of Tenant’s
      approval or of any corrections required in the Construction Documents within
      ten
      (10) days after they are received by Tenant. Upon approval of the Construction
      Documents in accordance with this section, the Construction Documents shall
      constitute the Approved Construction Documents. Subsequent revisions or
      variations, if any, to the Approved Construction Documents shall be mutually
      approved by Landlord and Tenant. Any re-drawings requested by Tenant to the
      Approved Construction Documents shall be at Tenant’s sole cost and expense. The
      Approved Construction Documents shall be attached to and incorporated in this
      Construction Agreement as Exhibit
      “G-1”.

    

    
      	
              3.

            	
              Construction.
                Landlord agrees to construct or cause to be constructed the Tenant
                Improvements pursuant to the Approved Construction Documents. Tenant
                acknowledges that Landlord contemplates entering into a construction
                contract (“Construction Contract”) with a third party (“Contractor”) who
                will perform Landlord’s obligations hereunder. The construction of the
                Tenant Improvements will be competitively bid to not less than three
                (3)
                and no more than five (5) qualified general contractors. The bidders
                will
                be selected by Landlord and a summary of those bids will be submitted
                to
                Tenant for review and approval by Tenant, which approval shall not
                be
                unreasonably withheld, conditioned or delayed. Tenant and Landlord
                will
                mutually agree to the final selection of Contractor to perform the
                construction of the Tenant Improvements. Tenant agrees to look solely
                to
                Contractor for construction of the Tenant Improvements and Landlord’s
                obligation shall be to use its best efforts to cause Contractor to
                complete the Tenant Improvements substantially in accordance with
                the
                Approved Construction Documents. Landlord shall collect a Construction
                Management fee, payable to Landlord, equal to five percent (5%) of
                the
                total construction costs.

            

    

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    

    Notwithstanding
      anything to the contrary contained herein, Landlord shall have fourth five
      (45)
      days from the date the Construction Documents are approved to apply for and
      obtain a construction permit from the City of Austin to construct and complete
      such Tenant Improvements.

    

    It
      is
      agreed and understood that all of the Tenant Improvements shall become the
      property of Landlord upon expiration of this Lease.

    

    3. Delays.
      In the
      event the Contractor shall be delayed in substantially completing the Tenant
      Improvements and/or any additional work, if any, as a result of:

    

    
      	 	
              a)

            	
              Tenant’s
                failure to promptly and timely furnish any information required by
                Landlord hereunder; or

            

    

    
      	 	
              b)

            	
              Tenant’s
                delay in approving the plans; or

            

    

    
      	 	
              c)

            	
              Tenant’s
                changes in any plans, which changes are contrary to the Construction
                Documents, including, without limitation, any change orders;
                or

            

    

    
      	 	
              d)

            	
              Interference
                with Landlord’s work by Tenant or any contractor or agent of Tenant;
                or

            

    

    
      	 	
              e)

            	
              The
                performance or lack of performance of any work by a person, firm
                or
                corporation employed by Tenant; or

            

    

    
      	 	
              f)

            	
              Tenant’s
                request or use of materials, finishes or installations other than
                building
                standard; or

            

    

    
      	 	
              g)

            	
              Tenant’s
                breach of this Construction Agreement or the
                Lease,

            

    

    

    then
      the
      date the Leased Premises are deemed ready for occupancy and the date for payment
      of rent pursuant to the terms of this Lease shall be accelerated by the number
      of days of such delays.

    

    4. Early
      Entry.
      Landlord will permit Tenant and its agents to enter the Leased Premises prior
      to
      the date the Leased Premises are ready for occupancy, in order that Tenant
      may
      perform through its own contractors such other work and decorations in and
      to
      the Leased Premises as Landlord may approve in writing. The foregoing license
      to
      enter the Leased Premises prior to the date the same are ready for occupancy,
      however, is conditioned upon Tenant’s contractors working in harmony and not
      interfering with Contractor or any subcontractors. Such license is further
      conditioned upon workers’ compensation and public liability insurance and
      property damage insurance, all in amounts and with companies and on forms
      satisfactory to Landlord, being provided and at all times maintained by Tenant’s
      contractors and certificates of such insurance being furnished to Landlord
      prior
      to Tenant proceeding with any work. Additionally, Tenant’s contractors must
      notify and coordinate with Contractor for scheduling work in the Leased
      Premises, prior to completion of the Tenant Improvements. So long as normal
      day-to-day business activities of Tenant have not commenced during such early
      entry, Tenant shall not be considered in occupancy of the Leased Premises.
      Landlord shall not be liable in any way for any injury, loss or damage which
      may
      occur to Tenant, its employees, contractors, agents, workmen and mechanics,
      or
      any one or more of them, or to any of Tenant’s decorations or installations so
      made prior to the Commencement Date, the same being solely at Tenant’s risk and
      Tenant indemnifies and agrees to hold Landlord harmless from any and all claims
      arising therefrom, regardless of whether such claims or damages are based in
      whole or in part upon the negligence of Landlord, Contractor or any of their
      respective employees, agents or contractors.

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    

    

    5. Punch
      List.
      Prior
      to occupancy of the Leased Premises by Tenant, Tenant shall submit to Landlord
      and Contractor a written list of any items that are of inferior workmanship
      or
      incomplete requiring “touch up” or minor finish, or items that are not in
      accordance with the approved Construction Documents (said list being hereinafter
      referred to as the “Punch List”). Upon receipt of the Punch List, Contractor
      shall have thirty (30) days thereafter to complete the Punch List
      items.

    

    6. Tenant
      Improvement Allowance.
      Landlord hereby grants to Tenant an allowance in an amount not to exceed $10.00
      per square foot of Net Rentable Area within the Leased Premises for improvements
      in and to the Leased Premises (herein referred to as the “Improvement
      Allowance”). Any unused Improvement Allowance shall become the property of the
      Landlord.

    

    Upon
      Tenant’s written request, Tenant shall have the right to amortize, into Tenant’s
      Basic Rental, up to an additional three dollars ($3.00) per net rentable square
      foot. Such amortization shall be at an interest rate of 8%. Tenant’s request for
      such amortization must be received by Landlord within 30 days from the
      Commencement Date.

    

    7. NO
      WARRANTIES.
      LANDLORD MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION,
      IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,
      IN
      CONNECTION WITH SPACE PLANS, CONSTRUCTION DOCUMENTS OR TENANT
      IMPROVEMENTS.

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “G-1”

    

    TO
      LEASE
      BETWEEN CGLIC/SAR AS LANDLORD

    AND
      WINTEGRA, INC. AS TENANT

    

    

    

    “Approved
      Space Plan”

    

    

    

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      “H”

    

    TO
      LEASE
      BETWEEN CGLIC/SAR AS LANDLORD

    AND
      WINTEGRA, INC. AS TENANT

    

    ERISA
      PARTIES IN INTEREST LIST

    SEPARATE
      ACCOUNT R

    

    
      	 	
              1.

            	
              Treasurer
                of the State of North Carolina

            

    

    

    
      	 	
              2.

            	
              The
                United Nations Joint Staff Pension
                Fund

            

    

    

    
      	 	
              3.

            	
              Maryland
                State Retirement System

            

    

    

    
      	 	
              4.

            	
              International
                Bank for Reconstruction and Development World Bank Pension Department
                (Staff Retirement Plan 1)

            

    

    

    
      	 	
              5.

            	
              The
                School Employees Retirement Board of
                Ohio

            

    

    

    
      	 	
              6.

            	
              International
                Monetary Fund as Trustee of the Staff Retirement
                Plan

            

    

    

    
      	 	
              7.

            	
              Public
                School Teachers Pension & Retirement Fund of
                Chicago

            

    

    

    PLEASE
      BE
      ADVISED THAT THE PRECEDING IS A LIST OF RETIREMENT PLANS WHICH MAY HAVE AN
      INTEREST IN SEPARATE ACCOUNT R AS OF THE DATE HEREOF IN EXCESS OF TEN PERCENT
      (10%). THIS EXHIBIT IS SUBJECT TO CHANGE AS HOLDERS OF INTEREST ARE EITHER
      ADDED
      OR SUBTRACTED OR THE PERCENTAGE INTEREST HELD BY ANY PLAN CHANGES.

    

    As
      of
      August 1, 1998

    

    Party-in-Interest
      Definition

    

    The
      term
      a party-in-interest means, as to an employee benefit plan - 

    

    
      	(a)	
              any
                fiduciary (including, but not limited to, an administrator, officer,
                trustee, or custodian), counsel, or employee of such employee benefit
                plan;

            

    

    
      	
              (b)

            	
              a
                person providing services to such
                plan;

            

    

    
      	
              (c)

            	
              an
                employer any of whose employees are covered by such
                plan;

            

    

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    

    
      	
              (d)

            	
              an
                employee organization any of whose members are covered by such
                plan;

            

    

    
      	
              (e)

            	
              an
                owner, direct or indirect, of 50 percent or more of -
                

            

    

    
      	 	
              (i)

            	
              the
                combined voting power of all classes of stock entitled to vote or
                the
                total value of shares of all classes of stock of a
                corporation,

            

    

    
      	 	
              (ii)

            	
              the
                capital interest or the profits interest of a partnership,
                or

            

    

    
      	 	
              (iii)

            	
              the
                beneficial interest of a trust or unincorporated enterprise, which
                is an
                employer or an employee organization described in subparagraph (C)
                or
                (D);

            

    

    

    
      	(f)	
              a
                relative (as defined in paragraph (15) of any individual described
                in
                subparagraph (A), (B), (C) or (E);

            

    

    
      	
              (g)

            	
              a
                corporation, partnership, or trust or estate of which (or in which)
                50
                percent or more of - 

            

    

    
      	 	
              (i)
                

            	
              the
                combined voting power of all classes of stock entitled to vote or
                the
                total value of shares of all classes of stock of such
                corporation,

            

    

    
      	
            	(ii)	
              the
                capital interest or profits interest of such partnership,
                or

            

    

    
      	 	
              (iv)

            	
              the
                beneficial interest of such trust or estate, is owned directly or
                indirectly, or held by persons described in subparagraph (A), (B),
                (C),
                (D), or (E);

            

    

    

    
      	
              (h)

            	
              an
                employee, officer, director (or an individual having powers or
                responsibilities similar to those of officers or directors), or a
                10
                percent or more shareholder directly or indirectly, of a person described
                in subparagraph (B), (C), (D), (E), or (G), or of the employee benefit
                plan; or

            

    

    
      	
              (i)

            	
              a
                10 percent or more (directly or indirectly in capital or profits)
                partner
                or joint venturer of a person described in subparagraph (B), (C),
                (D),
                (E), or (G).

            

    

    

    The
      Secretary, after consultation and coordination with the Secretary of the
      Treasury, may be regulation prescribed a percentage lower than 50 percent of
      subparagraphs (E) and (G) and lower than 10 percent for subparagraphs (H) or
      (I). The Secretary may prescribe regulations for determining the ownership
      (direct or indirect) of profits and beneficial interests, and the manner in
      which indirect stockholdings are taken into account. Any person who is a
      party-in-interest with respect to a plan to which a trust described in Section
      510(C)(22) of the Internal Revenue Code of 1986 is permitted to make payments
      under Section 4223 shall be treated as a party-in-interest with respect to
      such
      trust.

     

    
      
        
        

      

      
        41Exhibit 10.2

                           CHANGE IN CONTROL AGREEMENT

         This Change in Control Agreement (this "Agreement"), dated as of ______
__, 2006, is between Itron, Inc., a Washington corporation (the "Company"),  and
_______________ (the "Executive").

         The Board of Directors of the Company (the "Board") has determined that
it is in the best interests of the Company and its shareholders to ensure that
the Company will have the continued dedication of the Executive, notwithstanding
the possibility, threat or occurrence of a Change in Control (defined below) of
the Company. The Board believes it is imperative to diminish the inevitable
distraction of the Executive arising from the personal uncertainties and risks
created by a pending or threatened Change in Control, to encourage the
Executive's full attention and dedication to the Company currently and in the
event of any threatened or pending Change in Control, and to provide the
Executive with reasonable compensation and benefits arrangements upon a Change
in Control.

         In order to accomplish these objectives, the Board has caused the
Company to enter into this Agreement with the Executive.

                                  1. EMPLOYMENT

1.1      Certain Definitions

         (a) "Cause" shall mean cause given by the Executive to the Company and
shall include the occurrence of one or more of the following events:

                  (i) Executive's willful injury of the Company, or Executive's
         breach of fiduciary duty to the Company involving personal profit;

                  (ii) Conviction of Executive under any applicable criminal law
         involving the commission of a crime against the Company or any felony;

                  (iii) Habitual or repeated misuse by Executive of alcohol or
         controlled substances that materially impairs Executive's ability to
         perform his duties under this Agreement; or

                  (iv) Any willful act of Executive involving moral turpitude
         materially and adversely affecting the business, goodwill or reputation
         of the Company.
<PAGE>

         (b) "Change in Control" shall mean:

                  (i) consummation of an acquisition by any Entity of beneficial
         ownership (within the meaning of Rule 13d-3 promulgated under the
         Exchange Act) of 20% or more of either (1) the then outstanding shares
         of common stock of the Company (the "Outstanding Company Common Stock")
         or (2) the combined voting power of the then outstanding voting
         securities of the Company entitled to vote generally in the election of
         directors (the "Outstanding Company Voting Securities"), excluding,
         however, the following: (a) any acquisition directly from the Company,
         other than an acquisition by virtue of the exercise of a conversion
         privilege where the security being so converted was not acquired
         directly from the Company by the party exercising the conversion
         privilege, (b) any acquisition by the Company, (c) any acquisition by
         any employee benefit plan (or related trust) sponsored or maintained by
         the Company or any Related Company, or (d) a Related Party Transaction;

                  (ii) a change in the composition of the Board during any
         two-year period such that the individuals who, as of the beginning of
         such two-year period, constitute the Board (the "Incumbent Board")
         cease for any reason to constitute at least a majority of the Board;
         provided, however, that for purposes of this definition, any individual
         who becomes a member of the Board subsequent to the beginning of the
         two-year period, whose election, or nomination for election by the
         Company's shareholders, was approved by a vote of at least two-thirds
         of those individuals who are members of the Board and who were also
         members of the Incumbent Board (or deemed to be such pursuant to this
         proviso) shall be considered as though such individual were a member of
         the Incumbent Board; and provided further, however, that any such
         individual whose initial assumption of office occurs as a result of or
         in connection with an actual or threatened solicitation of proxies or
         consents by or on behalf of an Entity other than the Board shall not be
         considered a member of the Incumbent Board;

                  (iii) consummation of a merger or consolidation of the Company
         with or into any other company or other entity, excluding, in each
         case, a Related Party Transaction;

                  (iv) consummation of a statutory share exchange pursuant to
         which the Company's outstanding shares are acquired or a sale in one
         transaction or a series of transactions undertaken with a common
         purpose of at least 50% of the Company's outstanding voting securities,
         excluding, in each case, a Related Party Transaction; or

                  (v) consummation of a sale, lease, exchange or other transfer
         in one transaction or a series of related transactions undertaken with
         a common purpose of all or substantially all of the Company's assets,
         excluding, in each case, a Related Party Transaction.

                                                                               2
<PAGE>

                  Where a series of transactions undertaken with a common
         purpose is deemed to be a Change in Control, the date of such Change in
         Control shall be the date on which the last of such transactions is
         consummated.

         (c) "Change in Control Date" shall mean the first date during the Term
of Agreement (as defined in Section 1.1(b)) on which a Change in Control occurs.
Anything in this Agreement to the contrary notwithstanding, if a Change in
Control occurs and if the Executive's employment with the Company is terminated
prior to the date on which the Change in Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at the
request of a third party who has taken steps reasonably calculated to effect the
Change in Control or (ii) otherwise arose in connection with or anticipation of
the Change in Control, then for all purposes of this Agreement the "Change in
Control Date" shall mean the date immediately prior to the date of such
termination of employment.

         (d) "Entity" shall mean any individual, entity or group (within the
meaning of Section 13(d)(3) of the Exchange Act).

         (e) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         (f) "Good Reason" shall mean the occurrence of any of the following
events, without the consent of the Executive:

                  (i) A demotion or other material reduction in the nature or
         status of the Executive's responsibilities as contemplated by Section
         1.3, excluding for this purpose an isolated and inadvertent action not
         taken in bad faith and which is remedied by the Company promptly after
         receipt of notice thereof given by the Executive; provided that a
         change in the person or office to which the Executive reports, without
         a corresponding reduction in duties, status and responsibilities,
         resulting primarily from organizational changes incident to a merger or
         acquisition, shall not constitute "Good Reason";

                  (ii) Any failure by the Company to comply with any of the
         provisions of Section 3 hereof, other than an isolated and inadvertent
         failure not occurring in bad faith and which is remedied by the Company
         promptly after receipt of notice thereof given by the Executive;

                  (iii) The Company's requiring the Executive to be based at any
         office or location other than that described in Section 1.4 hereof; or

                                                                               3
<PAGE>

                  (iv) Any failure by the Company to comply with and satisfy
         Section 10 hereof, provided that the Company's successor has received
         at least ten days' prior written notice from the Company or the
         Executive of the requirements of Section 10 hereof.

         (g) "Parent Company" shall mean a company or other entity which as a
result of a Change in Control owns the Company or all or substantially all of
the Company's assets either directly or through one or more subsidiaries.

         (h) "Related Company" shall mean any entity that is directly or
indirectly controlled by, in control of or under common control with the
Company.

         (i) "Related Party Transaction" shall mean a Change in Control pursuant
to which:

                  (i) the Entities who are the beneficial owners of the
         Outstanding Company Common Stock and Outstanding Company Voting
         Securities immediately prior to such Change in Control will immediately
         upon the consummation of the Change in Control beneficially own,
         directly or indirectly, at least 50% of the outstanding shares of
         common stock, and the combined voting power of the then outstanding
         voting securities entitled to vote generally in the election of
         directors of the Successor Company in substantially the same
         proportions as their ownership, immediately prior to such Change in
         Control, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities;

                  (ii) no Entity (other than the Company, any employee benefit
         plan or related trust of the Company or a Related Company, the
         Successor Company or, if reference was made to equity ownership of any
         Parent Company for purposes of determining whether clause (i) above is
         satisfied in connection with the applicable Change in Control, such
         Parent Company) will beneficially own, directly or indirectly, 40% or
         more of, respectively, the outstanding shares of common stock of the
         Successor Company or the combined voting power of the outstanding
         voting securities of the Successor Company entitled to vote generally
         in the election of directors unless such ownership resulted solely from
         ownership of securities of the Company prior to the Change in Control;
         and

                  (iii) individuals who were members of the Incumbent Board will
         immediately after the consummation of the Change in Control constitute
         at least a majority of the members of the board of directors of the
         Successor Company (or, if reference was made to equity ownership of any
         Parent Company for purposes of determining whether clause (i) above is
         satisfied in connection with the applicable Change in Control, of the
         Parent Company).

                                                                               4
<PAGE>

         (j) "Successor Company" shall mean the surviving company, the successor
company or Parent Company, as applicable, in connection with a Change in
Control.

         (k) "Term of Agreement" shall mean an initial period commencing on the
date hereof and ending 18 months after the date hereof; provided, however, that
commencing on the date that is 12 months after the date hereof, and on each
annual anniversary of such date (such date and each annual anniversary thereof
shall be hereinafter referred to as the "Renewal Date"), the Term of Agreement
shall be automatically extended so as to terminate 18 months from such Renewal
Date, unless prior to the Renewal Date the Company shall give notice to the
Executive that the Term of Agreement shall not be so extended.

1.2      Post-Change in Control Period

         The Company hereby agrees to continue the Executive in its employ or in
the employ of its affiliated companies, and the Executive hereby agrees to
remain in the employ of the Company, the Successor Company or their affiliated
companies, in accordance with the terms and provisions of this Agreement, for
the period commencing on the Change in Control Date and ending [one] [two] years
after such date (the "Post-Change in Control Period").

1.3      Position and Duties

         During the Post-Change in Control Period, the Executive's position,
authority, duties and responsibilities shall be reasonably commensurate with the
most significant of those held, exercised and assigned at any time during the
90-day period immediately preceding the Change in Control Date.

1.4      Location

         During the Post-Change in Control Period, the Executive's services
shall be performed at any office located no more than 50 miles from the office
where Executive was performing services as of the Change in Control Date.

                                                                               5
<PAGE>

1.5      Employment at Will

         The Executive and the Company acknowledge that, except as may otherwise
be provided under any other written agreement between the Executive and the
Company, the employment of the Executive by the Company or its affiliated
companies is "at will" and, prior to the Change in Control Date, may be
terminated by either the Executive or the Company or its affiliated companies
for any reason and at any time. Moreover, if prior to the Change in Control
Date, the Executive's employment with the Company or its affiliated companies
terminates for any reason,then the Executive shall have no further rights under
this Agreement.

1.6      Board of Directors

         If the Executive is or becomes a member of the Board, his or her
continuation as such shall be subject to the will of the Company's shareholders
and the Board, as provided in the Company's bylaws and articles of
incorporation. Therefore, removal of the Executive from, or nonelection of the
Executive to, the Board by the Company's shareholders or the Board, as provided
in the Company's bylaws and articles of incorporation, shall in no event be
deemed a breach of this Agreement by the Company nor shall it entitle the
Executive to any benefits hereunder.

                             2. ATTENTION AND EFFORT

         During the Post-Change in Control Period, and excluding any periods of
vacation and sick leave to which the Executive is entitled, the Executive will
devote his time, attention and effort during normal business hours to the
business and affairs of the Company and discharge the responsibilities assigned
to him hereunder, and will use his reasonable best efforts to perform such
responsibilities faithfully and efficiently. It shall not be a violation of this
Agreement for the Executive to (a) serve on corporate, civic or charitable
boards or committees, (b) deliver lectures, fulfill speaking engagements or
teach at educational institutions, and (c) manage personal investments, so long
as such activities do not significantly interfere with the performance of the
Executive's responsibilities in accordance with this Agreement. It is expressly
understood and agreed that to the extent any such activities have been conducted
by the Executive prior to the Post-Change in Control Period, the continued
conduct of such activities (or the conduct of activities similar in nature and
scope thereto) during the Post-Change in Control Period shall not thereafter be
deemed to interfere with the performance of the Executive's responsibilities to
the Company.

                                                                               6
<PAGE>

                                 3. COMPENSATION

         During the Post-Change in Control Period, the Company agrees to pay or
cause to be paid to the Executive, and the Executive agrees to accept in
exchange for the services rendered hereunder by him/her, the following
compensation:

3.1      Salary

         The Executive shall receive an annual base salary (the "Annual Base
Salary"), at least equal to the annual base salary established by the Board or
the Compensation Committee of the Board (the "Compensation Committee") for the
fiscal year in which the Change in Control Date occurs or, if the Executive's
annual salary has not been established for such fiscal year prior to the Change
in Control Date, then the Annual Base Salary shall be at least equal to the
Executive's annual base salary for the preceding fiscal year. The Annual Base
Salary shall be paid in substantially equal installments and at the same
intervals as the salaries of other officers of the Company are paid. During the
Post-Change in Control Period, the Board or the Compensation Committee shall
review the Annual Base Salary at least annually and shall determine any
increases in future years.

3.2      Bonus

         In addition to Annual Base Salary, the Executive shall be awarded an
annual bonus in cash at least equal to the maximum annual bonus established for
the Executive for the fiscal year in which the Change in Control Date occurs
("Annual Bonus"). If an Annual Bonus has not been established for such fiscal
year prior to the Change in Control Date, the Annual Bonus shall be at least
_____% of Annual Base Salary. The Annual Bonus in subsequent years of this
Agreement shall not be less than the initial Annual Bonus payable hereunder.
Each such Annual Bonus shall be paid no later than 60 days after the end of the
fiscal year for which the Annual Bonus is awarded, unless the Executive elects
to defer the receipt of such Annual Bonus in accordance with applicable terms in
any deferred compensation plan executed by the Executive.

3.3      Long Term Performance Plan Awards

         If the Executive receives a payout of outstanding awards under the
Company's Long Term Performance Plan ("LTPP") in accordance with the
change-of-control provisions of the LTPP, then the Executive will receive
payouts under the LTPP (or a successor plan) in subsequent years of this
Agreement that are no less than such initial payment. Except as provided in
Section 6.1, the LTPP award for any year shall be paid to the executive in
accordance with the LTPP's terms, as in effect on the Change in Control Date;
provided, however, that distributions shall be made in shares of the Successor
Company (if Company stock ceases to be publicly traded on or after the Change in
Control Date).
                                                                               7
<PAGE>

                                   4. BENEFITS

4.1      Incentive, Retirement and Welfare Benefit Plans; Vacation

         During the Post-Change in Control Period, the Executive shall be
entitled to participate in the fringe benefit programs provided by the Successor
Company to its similarly situated executives. If, however, when considered in
the aggregate, such fringe benefit programs are of less value to the Executive
than the Company's fringe benefit programs in effect immediately prior to the
Change in Control Date, then the Executive shall be entitled to the same fringe
benefits as the Executive was eligible for immediately prior to the Change in
Control Date (or, at the election of the Successor Company, to monthly cash
payments equal to the difference in value (grossed up for applicable taxes with
respect to those fringe benefits that would not have been includible in the
Executive's taxable income) between the benefits actually provided to the
Executive by the Successor Company for such month and the monthly fringe
benefits for which the Executive was eligible immediately prior to the Change in
Control Date), including, without limitation, paid vacations; any incentive,
savings and retirement plan, practice, policy or program; and all welfare
benefit plans, practices, policies and programs (including, without limitation,
medical, prescription, dental, disability, salary continuance, employee life,
group life, accidental death and travel accident insurance plans and programs).

4.2      Expenses

         During the Post-Change in Control Period, the Executive shall be
entitled to receive prompt reimbursement for all reasonable employment expenses
incurred by him/her in accordance with the policies, practices and procedures of
the Company and its affiliated companies in effect for the executives of the
Company and its affiliated companies during the Post-Change in Control Period.

                                 5. TERMINATION

         Employment of the Executive during the Post-Change in Control Period
may be terminated as follows:

5.1      By the Company or the Executive

         Upon giving Notice of Termination (as defined below), the Company may
terminate the employment of the Executive with or without Cause, and the
Executive may terminate his or her employment for Good Reason or for any reason,
at any time during the Post-Change in Control Period.

                                                                               8
<PAGE>

5.2      Automatic Termination

         This Agreement and the Executive's employment during the Post-Change in
Control Period shall terminate automatically upon the death or Total Disability
of the Executive. The term "Total Disability" as used herein shall mean the
Executive's inability (with or without such accommodation as may be required by
law and which places no undue burden on the Company), as determined by a
physician selected by the Company and acceptable to the Executive, to perform
the duties set forth hereunder for a period or periods aggregating 120 calendar
days in any 12-month period as a result of physical or mental illness, loss of
legal capacity or any other cause beyond the Executive's control, unless the
Executive is granted a leave of absence by the Board.

5.3      Notice of Termination

         Any termination by the Company or by the Executive during the
Post-Change in Control Period shall be communicated by Notice of Termination to
the other party given in accordance with Section 10 hereof. The term "Notice of
Termination" shall mean a written notice which (a) indicates the specific
termination provision in this Agreement relied upon and (b) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive's employment under the
provision so indicated. The failure by the Executive or the Company to set forth
in the Notice of Termination any fact or circumstance which contributes to a
showing of Good Reason or Cause shall not waive any right of the Executive or
the Company hereunder or preclude the Executive or the Company from asserting
such fact or circumstance in enforcing the Executive's or the Company's rights
hereunder.

5.4      Date of Termination

         During the Post-Change in Control Period, the term "Date of
Termination" shall mean (a) if the Executive's employment is terminated by
reason of death, at the end of the calendar month in which the Executive's death
occurs, (b) if the Executive's employment is terminated by reason of Total
Disability, immediately upon a determination by the Company of the Executive's
Total Disability, and (c) in all other cases, ten days after the date of mailing
or personal delivery of the Notice of Termination. The Executive's employment
and performance of services will continue during such ten-day period; provided,
however, that the Company may, upon notice to the Executive and without reducing
the Executive's compensation during such period, excuse the Executive from any
or all of his or her duties during such period.

                                                                               9
<PAGE>

                             6. TERMINATION PAYMENTS

         In the event of termination of the Executive's employment during the
Post-Change in Control Period, all compensation and benefits set forth in this
Agreement shall terminate except as specifically provided in this Section 6.

6.1      Termination by the Company for Other Than Cause or by the
         Executive for Good Reason

         If the Company terminates the Executive's employment other than for
Cause or the Executive terminates his or her employment for Good Reason prior to
the end of the Post-Change in Control Period, the Executive shall be entitled
to:

         (a) receive payment of the following accrued obligations (the "Accrued
Obligations"):

                  (i) the Executive's Annual Base Salary through the Date of
         Termination to the extent not theretofore paid;

                  (ii) the product of (x) the Annual Bonus payable with respect
         to the fiscal year in which the Date of Termination occurs and (y) a
         fraction, the numerator of which is the number of days in the current
         fiscal year through the Date of Termination, and the denominator of
         which is 365; and

                  (iii) any compensation previously deferred by the Executive
         (adjusted for any earnings, gains or losses allocated thereto) as such
         deferred compensation becomes payable under the deferral plan pursuant
         to which such compensation was deferred, and any accrued vacation pay,
         in each case to the extent not theretofore paid;

         (b) for a period of 18 months after the Date of Termination, or if
less, until such time as COBRA continuation coverage under the Successor
Company's group health insurance plan ceases to be available to the Executive
and his/her family, payment or reimbursement of the premiums for any COBRA
continuation coverage elected by the Executive and his/her family under the
Successor Company's group health insurance plan;

         (c) for a period of 24 months after the Date of Termination, payment or
reimbursement of any premiums (and any income taxes payable by the Executive on
such payments or reimbursements) for any individual life insurance policy on the
Executive's life resulting from the Executive's conversion of his/her coverage
under the Successor Company's group-term life insurance plan to such policy; and

         (d) subject to adjustment as provided in Section 6.5, an amount as
severance pay equal to the product of (i) [one] [two] [three] and (ii) the sum
of the Executive's (x) Annual Base Salary, (y) Annual Bonus payable for the
fiscal year in which the Date of Termination occurs, and (z) the payout received
by the Executive (or to which the Executive is entitled) under Section 3.3 above
for the year in which the Change in Control Date occurs. Severance pay under
this paragraph (d) shall be paid in a lump sum within two and one-half (2 1/2)
months after the Date of Termination.

                                                                              10
<PAGE>

         Stock options granted to the Executive will vest and be exercisable in
accordance with the terms of the applicable grant and the applicable Stock
Option Plan; and outstanding awards under the LTPP will vest and be paid out in
accordance with the terms of the LTPP.

6.2      Termination for Cause or Other Than for Good Reason

         If the Executive's employment shall be terminated by the Company for
Cause or by the Executive for other than Good Reason during the Post-Change in
Control Period, this Agreement shall terminate without further obligation to the
Executive other than the obligation to pay to the Executive his or her Annual
Base Salary through the Date of Termination plus the amount of any compensation
previously deferred by the Executive (adjusted for any earnings, gains or losses
allocated thereto), in each case to the extent theretofore unpaid. Payments of
any compensation previously deferred by the Executive (and any related earnings,
gains and losses) will be made in accordance with the terms of the deferral plan
pursuant to which such compensation was deferred.

6.3      Expiration of Term

         In the case of a termination of the Executive's employment as a result
of the expiration of the term of this Agreement, the Executive shall not be
entitled to receive any payments hereunder, other than the Accrued Obligations.

6.4      Termination Because of Death or Total Disability

         If the Executive's employment is terminated by reason of the
Executive's death or Total Disability during the Post-Change in Control Period,
this Agreement shall terminate automatically without further obligations to the
Executive or his or her legal representatives under this Agreement, other than
for payment of Accrued Obligations (which shall be paid to the Executive's
estate or beneficiary, as applicable in the case of the Executive's death).

6.5      Excise Taxes

         (a) In the event that the Executive becomes entitled to the payments or
other benefits described in Section 6.1 hereof and the Executive becomes subject
to the tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the "Code"), or any successor provision (the "Excise Tax") as a result
of such payments and benefits and any other payments or benefits from the
Company required to be taken into account under Code Section 280G(b)(2)
(collectively, "Parachute Payments"), the Company shall pay to Executive an
additional amount (the "Make-Whole Payment") equal to the sum of (i) the Excise
Tax payable to the Executive prior to the Make-Whole Payment and (ii) the
Federal, state and local income tax and Excise Tax (including any interest or
penalties thereon) payable upon all payments made under subparagraphs (i) and
(ii) of this Section 6.5(a). Notwithstanding the foregoing, if reducing the
payment due to the Executive under Section 6.1 by up to five percent (5%) would
not subject the Executive to the Excise Tax, then the Company may reduce the
payment to the Executive by such amount (not to exceed five percent (5%)) as
would not subject the Executive to the Excise Tax.

                                                                              11
<PAGE>

         (b) All determinations required to be made under this Section 6.5,
including whether the Executive has received a Parachute Payment, shall be made
by the Company's independent tax advisor (the "Tax Advisor") which shall provide
detailed supporting calculations both to the Company and the Executive within 15
business days of the receipt of notice from the Executive that the Executive has
received a payment under Section 6.1, or such earlier time as is requested by
the Company. In the event that the Tax Advisor is serving as accountant or
auditor for the individual, entity or group effecting the Change of Control, the
Executive shall appoint another recognized independent tax advisor to make the
determinations required hereunder (which independent tax advisor shall then be
referred to as the Tax Advisor hereunder). All fees and expenses of the Tax
Advisor shall be borne solely by the Company. If the Tax Advisor determines that
no Excise Tax is payable by the Executive, it shall furnish the Executive with a
written opinion that failure to report the Excise Tax on the Executive's
applicable federal income tax return would not result in the imposition of a
negligence or similar penalty. As promptly as practicable following such
determination, the Company shall pay to or distribute for the benefit of the
Executive such payments as are then due to the Executive under this Agreement.
Any determination by the Tax Advisor shall be binding upon the Company and
Executive.

         (c) The Executive shall promptly pay to the Company any refunds of
Excise Tax received by the Executive. The Company shall promptly reimburse the
Executive for any additional federal, state or local taxes incurred by the
Executive as a result of any payments to the Executive pursuant to Section
6.5(b).

6.6      Payment Schedule

         Unless otherwise provided herein, all payments under this Section 6
shall be made to the Executive at the same intervals as such payments were made
to him/her immediately prior to termination.

                                                                              12
<PAGE>

               7. REPRESENTATIONS, WARRANTIES AND OTHER CONDITIONS

         In order to induce the Company to enter into this Agreement, the
Executive represents and warrants to the Company as follows:

7.1      Health

         The Executive is in good health and knows of no physical or mental
disability which, with or without any accommodation which may be required by law
and which places no undue burden on the Company, would prevent him/her from
fulfilling his or her obligations hereunder.

7.2      No Violation of Other Agreements

         The Executive represents that neither the execution nor the performance
of this Agreement by the Executive will violate or conflict in any way with any
other agreement by which the Executive may be bound.

                          8. NOTICE AND CURE OF BREACH

         Whenever a breach of this Agreement by either party is relied upon as
justification for any action taken by the other party pursuant to any provision
of this Agreement, other than any action that constitutes "Cause" under this
Agreement, before such action is taken, the party asserting the breach of this
Agreement shall give the other party at least ten days' prior written notice of
the existence and the nature of such breach before taking further action
hereunder and shall give the party purportedly in breach of this Agreement the
opportunity to correct such breach during the ten-day period.

                                9. FORM OF NOTICE

         Every notice required by the terms of this Agreement shall be given in
writing by serving the same upon the party to whom it was addressed personally
or by registered or certified mail, return receipt requested, at the address set
forth below or at such other address as may hereafter be designated by notice
given in compliance with the terms hereof:

         If to the Executive:
                                    --------------------------------------------

                                    --------------------------------------------

                                    --------------------------------------------

         If to the Company:         Itron, Inc.
                                    2818 N. Sullivan Road
                                    Spokane, Washington  99215
                                    Attn:  General Counsel

                                                                              13
<PAGE>

or such other address as shall be provided in accordance with the terms hereof.
Except as set forth in Section 5.4 hereof, if notice is mailed, such notice
shall be effective upon mailing.

                                 10. ASSIGNMENT

         This Agreement is personal to the Executive and shall not be assignable
by the Executive. The Company may assign its rights hereunder to (a) any
corporation resulting from any merger, consolidation or other reorganization to
which the Company is a party or (b) any corporation, partnership, association or
other person to which the Company may transfer all or substantially all of the
assets and business of the Company existing at such time. All the terms and
provisions of this Agreement shall be binding upon and inure to the benefit of
and be enforceable by the parties hereto and their respective successors and
permitted assigns.

         The Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all the
business and/or assets of the Company to assume expressly and agree to perform
this Agreement in the same manner and to the same extent that the Company would
be required to perform it if no such succession had taken place. As used in this
Agreement, "Company" shall mean Itron, Inc. and any successor to its business
and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

                                   11. WAIVERS

         No delay or failure by any party hereto in exercising, protecting or
enforcing any of its rights, tides, interests or remedies hereunder, and no
course of dealing or performance with respect hereto, shall constitute a waiver
thereof. The express waiver by a party hereto of any right, title, interest or
remedy in a particular instance or circumstance shall not constitute a waiver
thereof in any other instance or circumstance. All rights and remedies shall be
cumulative and not exclusive of any other rights or remedies.

                            12. AMENDMENTS IN WRITING

         No amendment, modification, waiver, termination or discharge of any
provision of this Agreement, nor consent to any departure therefrom by either
party hereto, shall in any event be effective unless the same shall be in
writing, specifically identifying this Agreement and the provision intended to
be amended, modified, waived, terminated or discharged and signed by the Company
and the Executive, and each such amendment, modification, waiver, termination or
discharge shall be effective only in the specific instance and for the specific
purpose for which given. No provision of this Agreement shall be varied,
contradicted or explained by any oral agreement, course of dealing or
performance or any other matter not set forth in an agreement in writing and
signed by the Company and the Executive.

                                                                              14
<PAGE>

                          13. SECTION 409A OF THE CODE

         Notwithstanding any other provision of this Agreement, the Company and
the Executive intend that any payments, benefits or other provisions applicable
to this Agreement comply with the payout and other limitations and restrictions
imposed under Section 409A of the Code ("Section 409A"), as clarified or
modified by guidance from the U.S. Department of Treasury or the Internal
Revenue Service - in each case if and to the extent Section 409A is otherwise
applicable to this Agreement and such compliance is necessary to avoid the
penalties otherwise imposed under Section 409A. In this connection, the Company
and the Executive agree that the payments, benefits and other provisions
applicable to this Agreement, and the terms of any deferral and other rights
regarding this Agreement, shall be deemed modified if and to the extent
necessary to comply with the payout and other limitations and restrictions
imposed under Section 409A, as clarified or supplemented by guidance from the
U.S. Department of Treasury or the Internal Revenue Service - in each case if
and to the extent Section 409A is otherwise applicable to this Agreement and
such compliance is necessary to avoid the penalties otherwise imposed under
Section 409A..

                               14. APPLICABLE LAW

         This Agreement shall in all respects, including all matters of
construction, validity and performance, be governed by, and construed and
enforced in accordance with, the laws of the State of Washington, without regard
to any rules governing conflicts of laws.

                                15. SEVERABILITY

         If any provision of this Agreement shall be held invalid, illegal or
unenforceable in any jurisdiction, for any reason, including, without
limitation, the duration of such provision, its geographical scope or the extent
of the activities prohibited or required by it, then, to the full extent
permitted by law, (a) all other provisions hereof shall remain in full force and
effect in such jurisdiction and shall be liberally construed in order to carry
out the intent of the parties hereto as nearly as may be possible, (b) such
invalidity, illegality or unenforceability shall not affect the validity,
legality or enforceability of any other provision hereof, and (c) any court or
arbitrator having jurisdiction thereover shall have the power to reform such
provision to the extent necessary for such provision to be enforceable under
applicable law.

                                                                              15
<PAGE>

                              16. ENTIRE AGREEMENT

         This Agreement on and as of the date hereof constitutes the entire
agreement between the Company and the Executive with respect to Executive's
duties and benefits upon and after a Change in Control and any other subject
matters addressed herein. All prior or contemporaneous oral or written
communications, understandings or agreements between the Company and the
Executive with respect to such subject matters, are hereby superseded and
nullified in their entireties. Any and all future oral or written
communications, understandings or agreements between the Company and the
Executive with respect to such subject matter shall not alter, amend, expand or
otherwise change the duties and benefits provided herein, unless in compliance
with the requirements of Paragraph 12 herein.

                                 17. WITHHOLDING

         The Company may withhold from any amounts payable under this Agreement
such federal, state or local taxes as shall be required to be withheld pursuant
to any applicable law or regulation.

                                18. COUNTERPARTS

         This Agreement may be executed in counterparts, each of which
counterpart shall be deemed an original, but all of which together shall
constitute one and the same Instrument.

                            [Signature page follows]

                                                                              16
<PAGE>

         IN WITNESS WHEREOF, the parties have executed and entered into this
Agreement as of the date set forth above.

                                 EXECUTIVE

                                 ---------------------------------------------

                                 ITRON, INC.

                                 By:
                                    -------------------------------------------

                                 Name:
                                      -----------------------------------------

                                 Title:
                                       ----------------------------------------

                                                                              17

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