Document:

exv10w15

 

	 	 	 	 	 	 	 	 	 	 	 
	Limelight Networks, Inc.	 	 	 	Microsoft Corporation	 	 
	2220 West 14th Street	 	 	 	One Microsoft Way	 	 
	Tempe, AZ 85281	 	 	 	Redmond, WA 98052	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature:
	 	/s/ Jeffrey W. Lunsford	 	 	 	Signature:	 	/s/ Kevin Johnson	 	 
	 
	 	 	 	 	 	 	 	 
	Printed Name: Jeffrey W. Lunsford	 	 	 	Printed Name: Kevin Johnson	 	 
	Title: CEO	 	 	 	Title: President, Platforms and
Services Division	 	 
	Date: 3/20/07	 	 	 	Date: 3/9/07	 	 

 
Confidential

	 	[*]	 	Confidential Treatment Requested

Page 34

 

Contents of this Document

Edge Computing Network Service and License Agreement

					
	 
	Exhibit A-1
	 	Microsoft Edge Computing Network Specifications
	 	2(a), 2(b)3
	Exhibit A-2
	 	Microsoft Responsibility in ECN Node Readiness
	 	2(b)4
	Exhibit B-1
	 	Microsoft Edge Computing Network Support Services
	 	 2(c), 2(f)
	Exhibit B-2
	 	Microsoft Edge Computing Professional Services
	 	2(e),2(j)
	Exhibit C-1
	 	Limelight Software Inventory
	 	3(a)
	Exhibit C-2
	 	Limelight Know-How and Trade Secrets
	 	3(a),11(b)
	Exhibit C-3
	 	Limelight Software Specification Definition
	 	3(a)
	Exhibit D
	 	Form Co-Location Agreement
	 	2(a)2
	Exhibit E
	 	Form Of [*] ECN Node Readiness Certificate
	 	2(b)2
	Exhibit F
	 	Criteria For Determining ECN Node Readiness
	 	2(b)2
	Exhibit G
	 	Press Release
	 	21(i)

Edge Computing Network Service and License Agreement

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1

 

EXHIBIT A-1

[*] EDGE COMPUTING NETWORK SPECIFICATIONS

The edge computing network is an [*] consisting of individual [*] ECN Nodes connected to each
other, and the Internet, which provides an [*] of services, capacity, and connectivity. Each [*]
ECN Node will deliver the following services: large file download, small object/file caching, large
object/file caching, network storage, live and on-demand streaming, path /hostname resolution,
secure content delivery (SSL/HTTPS), infrastructure management (logging, billing, monitoring,
alerting, ticketing, replication, [*]), and dynamic computational services. Each [*] ECN Node will
be constructed and operated based on Limelight’s content delivery network architecture and the
Limelight Software, with additional functionality as provided by Microsoft.

Each [*] ECN Node will comprise the following major components which provide the ECN functionality:

	 	i)	 	[*] ECN Node equipment infrastructure (servers, switches, routers, and miscellaneous)
will be procured and owned by Microsoft and based on specifications recommended by
Limelight
	 
	 	ii)	 	[*] ECN Node space and power procured by Microsoft
	 
	 	iii)	 	Network facilities [*] and [*] (including [*], if applicable) providing [*] on
specifications recommended by Limelight and jointly agreed between Limelight and
Microsoft;
	 
	 	iv)	 	The Limelight Software hosted within the equipment infrastructure as per (i) above
	 
	 	v)	 	Microsoft Edge Computing Services running on Microsoft owned hardware, using Microsoft
public and proprietary software;

which, taken together will yield an operational, Microsoft Edge Computing Network which will
operate in compliance with the specifications in this exhibit.

Microsoft and Limelight will mutually agree on the scale (traffic, storage, streams, etc) of each
service (small object/file caching, streaming, etc) within each [*] ECN Node, and use agreed upon
[*] ECN Node Acceptance Criteria (set forth in Exhibit F) to assure the [*] ECN Node is operating
at required levels.

Limelight shall (i) monitor each [*] ECN Node for all parameters that Limelight uses to monitor the
existing Limelight content delivery network and hosted servers within their nodes, and (ii) provide
Microsoft with (A) monitoring test results, (B) ongoing monitoring operational results and (C)
recommended actions based on those test results.

Microsoft has selected the first Edge Node site to be [*] an existing Microsoft Data Center or
co-location nearby on the metro ring. Within four weeks of the Effective Date, Microsoft and
Limelight will collaborate to develop an appropriate list of cities with deployment dates noting
Microsoft’s prioritization and appropriate site selection criteria based on Limelight’s experience.

Timeline: [*].

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EXHIBIT A-2

MICROSOFT RESPONSIBILITY IN ECN NODE READINESS

Both parties agree that this list of responsibilities will evolve in accordance with Section
2(b)(4) of the Agreement.

Microsoft has [*] prior to [*] ECN Node activation to provide the responsibilities listed below.

[*] ECN Node Location

	 	•	 	Microsoft/Limelight to cooperate in identifying the [*] ECN Node locations
	 
	 	•	 	Microsoft will provide required access to ECN network hardware and devices so Limelight
can effectively install and manage the [*] ECN Node until [*] ECN Node acceptance
	 
	 	•	 	Microsoft will provide Limelight 24/7/365 contact information for all support and
service issues and escalation path/contact and contact process
	 
	 	•	 	DC Power Systems

	 	•	 	N+1 redundancy in all power systems
	 
	 	•	 	48 volt DC power with 1500 — 3000 amps of available power
	 
	 	•	 	Redundant “A” and “B” circuits
	 
	 	•	 	Two hours battery backup at full load

	 	•	 	AC Power Systems

	 	•	 	N+1 redundancy in all power systems
	 
	 	•	 	Parallel redundant Uninterruptible Power Sources (UPS)
	 
	 	•	 	48-hour backup at full load with power generator

	 	•	 	Environmental Control

	 	•	 	Equipped with High Capacity HVAC systems
	 
	 	•	 	Co-location environment maintained at optimal temperature and humidity levels for equipment
	 
	 	•	 	24/7/365 HVAC emergency service by certified contactors

	 	•	 	Contracted scheduled and preventative maintenance with certified HVAC contractors
	 
	 	•	 	Fire Protection

	 	•	 	Smoke and high temperature detection and alarm system
	 
	 	•	 	24/7/365 NOC alerted before temperatures get to danger levels
	 
	 	•	 	Concrete floors and fireproof walls protect datacenter in case of fire in surrounding
	 
	 	•	 	Zone alerts fire extinguishing mechanism.

[*] ECN Node Networking

	 	•	 	Nodes should be located in a Microsoft facility or carrier-neutral co-locations in
major metropolitan areas around the world.
	 
	 	•	 	Each metro area contains a single logical routing core comprised of redundant routers
	 
	 	•	 	At minimum there should be redundant connections to the Internet and at least one
connection into a Limelight facility (where applicable) and a backbone connection into
another city [*] ECN Node location
	 
	 	•	 	Co-locations within each metro area should be connected together via local fiber rings.
	 
	 	•	 	Microsoft/Limelight to identify the desired capacity requirements on a per node basis
for each [*] ECN Node
	 
	 	•	 	Microsoft will assure the appropriate level of egress peering and transit capacity
exists at each [*] ECN Node, and for all cross connections within each [*] ECN Node,
through existing Microsoft networks and / or additional peering agreements.
	 
	 	•	 	Microsoft should maintain a single ECN ASN on a global basis.
	 
	 	 	 	(A global ASN is necessary to function with the CDN technology from Limelight. For
optimized delivery it is best to have consistent routing with our proprietary routing
architecture).

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EXHIBIT B-1

MICROSOFT EDGE COMPUTING NETWORK SUPPORT SERVICES

Standard Operating Procedure for Production Support —

	 	•	 	Limelight will manage a 24x7x365 Tier 1 operations center for the [*] ECN Node with
24x7x365 Tier 2 and 24x7x365 On-call Tier 3 support.
	 
	 	•	 	Tier 1 is defined as customer/property facing support. The agent must have sufficient
technical skills to assess the customer problem, triage, and log, escalate and solve to
completion [*] of the Tier 1 call volume at first touch. Tier 1 should identify themselves
as “[*] ECN”
	 
	 	•	 	Tier 2 is defined as Operational Support Services, including but not limited to Network
Operation, Application Operations, and Hardware Operations. Tier 2 shall respond to all
logs from Tier 1 within the OLAs (Operational Service Levels) defined in documentation that
Limelight will provide Microsoft prior to the First [*] ECN Node is operational, and drive
[*] closure to all open logs, and escalate to Tier 3 when all support options are exhausted
within the time period defined in the operation level agreement (OLA). Tier 2 is
responsible for identifying and managing RCA’s (Root Cause Analysis) for all problems
escalated to Tier 3, and for similar problems re-occurring more than
four times in a [ * ] period.
	 
	 	•	 	Tier 3 refers to architectural, engineering and development support necessary to
maintain the system. Tier 3 shall operate within the OLA.
	 
	 	•	 	Prioritizing alerts and issues — Issues will be classified in 3 priority levels —

	 	1.	 	High — e.g. user impact, property outages, significant
revenue loss, and property is not rendering, network outage, latency
	 
	 	2.	 	Medium — e.g. Server/service outages not directly
impacting performance and availability of the live sites
	 
	 	3.	 	Low — e.g. Non critical server/service outages

	 	•	 	Priority Level: The default priority of an alert/ticket is Medium, but property TSGs or
a Tier 1 Lead at his/her discretion can change this priority with documentation of
justification for escalation.
	 
	 	•	 	Communication Procedures — Any alerts and changes affecting live site operations will
be communicated to concerned Microsoft properties and the [*] ECN Node operations staff
based on documented procedures
	 
	 	•	 	Escalation procedures

	 	1.	 	All handoffs between tiers will be documented and
confirmed
	 
	 	2.	 	All Technical Support Guides (TSG), Handoff procedures,
troubleshooting steps will be documented and exchanged with Microsoft.

Limelight to provide the following documentation before operations of any [*] ECN Node is
transitioned to Microsoft

	 	•	 	Operations Guide

	 	•	 	Service offerings Definitions
	 
	 	•	 	Define roles and responsibilities
	 
	 	•	 	Define current customer SLAs and internal OLAs and process/tools to ensure they are met
	 
	 	•	 	On-boarding process of customers
	 
	 	•	 	Customer communication and escalation procedures
	 
	 	•	 	Process engineering flow (flowchart or step-by-step)
	 
	 	•	 	Knowledge Base articles and documentation
	 
	 	•	 	Security and Systems settings
	 
	 	•	 	Procedures for implementing technology with links to TSG’s

The documentation Limelight provides Microsoft shall fully address and answer the following:

	 	•	 	Definition of day-to-day tasks for each role involved in support of the technology

	 	•	 	What is the process to install the technology?
	 
	 	•	 	What events should be monitored?
	 
	 	•	 	What events would be seen on clients?

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	 	•	 	What security issues should the operations team be aware off?
	 
	 	•	 	What kind of response time (SLA) is signed for each activity
	 
	 	•	 	Who is responsible for troubleshooting the servers?
	 
	 	•	 	What are the troubleshooting steps to be taken to manage the servers
	 
	 	•	 	Where are the TSGs to manage the servers located?
	 
	 	•	 	At what point would a Service Request (SR) be distinguished from a client issue as
opposed to server issue?
	 
	 	•	 	Who would make that distinction? What are the troubleshooting steps to arrive at
that conclusion
	 
	 	•	 	When should an issue be escalated from Tier 1 to Tier 2 to Tier 3?
	 
	 	•	 	When should an issue be escalated to Security team(s) or Test or Development?
	 
	 	•	 	During the escalation process who would be responsible for customer communication

	 	•	 	Monitoring

	 	•	 	What are the different applications and server functions that are monitored?
	 
	 	•	 	How are they monitored?
	 
	 	•	 	What are the thresholds and watermarks?
	 
	 	•	 	How do you know that monitoring is working? (i.e. what systems are in place to
monitor the monitoring systems — or is it irrelevant by design?)
	 
	 	•	 	How is the availability of the service determined?
	 
	 	•	 	What metrics are key to “availability” of this service? & how can they be gathered?
	 
	 	•	 	Estimate of how many alarms/events will be seen by the Tier 1 and 2 teams?

	 	•	 	Logging

	 	•	 	What data has been logged?
	 
	 	•	 	What tools are used to reduce and analyze logs?
	 
	 	•	 	What processes are used to respond to demands from law enforcement and regulatory
bodies?

	 	•	 	Backups and Disaster Recovery

	 	•	 	Is Disaster Recovery a concern for this service and how is the risk managed?
	 
	 	•	 	What are the recovery points for this service?
	 
	 	•	 	What are the recovery thresholds for data, latency, and uptime? (i.e. what is the tolerance?)
	 
	 	•	 	What needs to be backed up?
	 
	 	•	 	How is a restore and return to normal operations validated?

	 	•	 	Handoff documentation (to enable operational support to be handed off to Microsoft
before the end of [*])

	 	•	 	Project Plan
	 
	 	•	 	Description of Deliverables / Customer requirements
	 
	 	•	 	Engineering Design Documentation Acceptance
	 
	 	•	 	Design drawings with formal design review
	 
	 	•	 	Test Plan and Final Analysis report
	 
	 	•	 	Risks / Impact Analysis
	 
	 	•	 	Security Design Documentation and acceptance
	 
	 	•	 	Interdependencies among departments and teams
	 
	 	•	 	Systems Configurations and ACLs
	 
	 	•	 	Definitions/Acronyms
	 
	 	•	 	Automated Alarming / Monitoring
	 
	 	•	 	List of all hosted Microsoft sites, customers, and contact points
	 
	 	•	 	Customer SLAs
	 
	 	•	 	Server Names: Location, Quantity, naming convention, function
	 
	 	•	 	Domain names, Organizational Units, Accounts
	 
	 	•	 	Ownership of the all servers and/or services with customers and SLA details
	 
	 	•	 	Maintenance Contract (High level)
	 
	 	•	 	Project Deliverables Checklist

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	 	•	 	Software Design Documents as specified in Exhibit C-3
	 
	 	•	 	List of unresolved defects including reproduction instructions, other analyses, and
engineering notes describing possible solutions

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EXHIBIT B-2

MICROSOFT EDGE COMPUTING PROFESSIONAL SERVICES

Limelight Consulting Services: Engagement Management, Project Management, CDN Architecture and
Design Consulting, Network and Systems Consulting, and Limelight Executive Management Consulting.
Microsoft will provide Limelight’s program management staff onsite and remote access to Microsoft’s
operation, platform and networking staff in Redmond.

Limelight Software Development Services: Software Project Management, Software Design, Software
Development and Quality Assurance. Software development services means the development of software
functionality that was not in Limelight’s original specifications or on a schedule that was not
Limelight’s original schedule (i.e., either more/different software function than planned or
delivery on a schedule other than planned).

Limelight Deployment Services: [*] ECN Node initial configuration and deployment, CDN server
configuration and deployment.

At Microsoft’s election, Limelight will meet and discuss the number of hours of Professional
Services used with the objective of helping ensure that all [*] ECN Nodes will be deployed without
the need for any Additional Professional Services Payment, and the Parties will use good faith
efforts to adjust staffing for Professional Services to meet that goal and the objectives of this
Agreement.

Total Hours and Hourly Rates for Professional Services:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Hourly	 	Total
	Category	 	Title	 	Total Hours	 	Rate	 	Value/Category
	Engagement Management

	 	GPM
	 	[*]
	 	[*]
	 	[*]
	Project Management

	 	PM
	 	[*]
	 	[*]
	 	[*]
	CDN Architecture

	 	Architect
	 	[*]
	 	[*]
	 	[*]
	Network Engineering

	 	NW Eng
	 	[*]
	 	[*]
	 	[*]
	Software Program Management

	 	PM
	 	[*]
	 	[*]
	 	[*]
	Software Design

	 	Prod Mgr
	 	[*]
	 	[*]
	 	[*]
	Software Development

	 	Dev
	 	[*]
	 	[*]
	 	[*]
	Quality Assurance

	 	Test
	 	[*]
	 	[*]
	 	[*]
	Deployment

	 	PM
	 	[*]
	 	[*]
	 	[*]
	Executive Management

	 	Management
	 	[*]
	 	[*]
	 	[*]
	TOTAL PROFESSIONAL 

SERVICES HOURS AND VALUE

	 	 	 	[*]
	 	 	 	[*]

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EXHIBIT C-1

LIMELIGHT SOFTWARE INVENTORY

Limelight-Proprietary Modules and Programs:

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

Modified Versions of Open Source Software Licensed Pursuant to the [*]:

[*]

[*]

[*]

Modified Versions of Open Source Software Licensed Pursuant to the [*]:

[*]

Edge Computing Network Service and License Agreement

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EXHIBIT C-2

LIMELIGHT KNOW-HOW AND TRADE SECRETS

	 	•	 	Methods for adapting a [*]
	 
	 	•	 	Techniques for managing the [*]
	 
	 	•	 	Methods of exploiting the [*]
	 
	 	•	 	Methods and techniques for [*]
	 
	 	•	 	Methods and techniques for [*]

Edge Computing Network Service and License Agreement

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EXHIBIT C-3

LIMELIGHT SOFTWARE SPECIFICATION DEFINITION

Software Specifications include, but are not limited to:

	 	•	 	System designs (conceptual, logical, physical)
	 
	 	•	 	Functional specifications for systems, subsystems, components, and object
	 
	 	•	 	Database schema
	 
	 	•	 	File format definitions
	 
	 	•	 	Network protocol specifications
	 
	 	•	 	API specifications for exposed and/or architected interfaces
	 
	 	•	 	Data flow diagrams
	 
	 	•	 	Network diagrams
	 
	 	•	 	Monitoring procedures and processes
	 
	 	•	 	Test definitions (unit, functional, system, performance, stress) and expected outcomes

Software Construction Specifications include, but are not limited to:

	 	•	 	Identification of compilers, linkers, source code management tools, etc.
	 
	 	•	 	Software specifications for any custom software construction tools (e.g. build
automation tools, build verification tools, test automation infrastructure)
	 
	 	•	 	Descriptions of software construction workflow and processes
	 
	 	•	 	Descriptions of test and validation workflow and processes

Tasks Microsoft will perform in its evaluation of Limelight Software may include (and are not
limited to):

	 	•	 	Construct Limelight Software in accordance with Software Construction Specifications.
Any instance of software which cannot be so constructed shall constitute a Software Error.
	 
	 	•	 	Compare constructed binaries to binaries delivered by Limelight. Any discrepancy which
cannot be shown to be irrelevant to the operation of the software (such as a
time-of-compilation timestamp) shall constitute a Software Error.
	 
	 	•	 	Compare test definitions against the test code supplied by Limelight. Any defined test
for which no test code or documented test procedure was provided shall constitute a
Software Error.
	 
	 	•	 	Compare test definitions against Software Specifications. Any requirement or functional
specification for which no test definitions were provided shall constitute a Software
Error.
	 
	 	•	 	Execute/perform all supplied tests in accordance with Software Construction
Specifications. Any test for which actual results do not match the defined expected results
shall constitute a Software Error.

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EXHIBIT D

FORM CO-LOCATION AGREEMENT

This Co-location Agreement (the “Agreement”) is made between [Microsoft Entity] (“Customer”) and
Limelight Networks, Inc., a Delaware corporation (“Limelight”) and consists of (i) these terms and
conditions and (ii) Exhibits A, B, C, D, E, F, G, H and I. This Agreement may be executed by
facsimile and/or in multiple counterparts. Once executed by both parties, this Agreement is
effective as of the Effective Date shown below. In the event of conflict between this Agreement and
Exhibit D herein Exhibit D shall take precedent. Limelight and Customer both consent, and agree to
accept, the use of electronic signatures as valid under this Agreement. Furthermore, Limelight and
Customer agree that an electronic signature will be considered of identical weight to a handwritten
signature.

	 	 	 	 	 
	[MICROSOFT ENTITY]

	 	 
	 	Limelight Networks, Inc.
	 
	 	 	 	 
	Authorized Signature

	 	 	 	Authorized Signature
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	(Print name)

	 	 	 	(Print name)
	 
	 	 	 	 
	 

	 	 	 	 
	Title

	 	 	 	Title
	 
	 	 	 	 
	 

	 	 	 	 
	
Address:

	 	 	 	
Address:
	 
	 	 	 	 
	Telephone:

	 	 	 	Telephone:
	Facsimile:

	 	 	 	Facsimile:

Effective Date:

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	1.	 	Provision of Services	 	 	7	 
	 

	 	1.1.	 	Service Charges and Billing
	 	 	7	 
	 

	 	1.2.	 	Initial Payment
	 	 	7	 
	 

	 	1.3.	 	Recurring Charges
	 	 	7	 
	 

	 	1.4.	 	Additional works / Services
	 	 	7	 
	 

	 	1.5.	 	Payment
	 	 	7	 
	2.	 	Co-location	 	 	8	 
	 

	 	2.1.	 	Use of Space
	 	 	8	 
	 

	 	2.2.	 	Hours of Operation
	 	 	8	 
	 

	 	2.3.	 	Customer Equipment
	 	 	8	 
	 

	 	2.4.	 	Access and Security
	 	 	8	 
	 

	 	2.5.	 	Illegal Use
	 	 	8	 
	8.	 	Warranty	 	 	9	 
	9.	 	Limitations of Liability	 	 	9	 
	 

	 	9.1.	 	Personal Injury
	 	 	9	 
	 

	 	9.2.	 	Damage to Customer Equipment
	 	 	9	 
	 

	 	9.3.	 	Damage to Customer Business
	 	 	9	 
	 

	 	9.4.	 	Maximum Liability
	 	 	9	 
	 

	 	9.5.	 	Consequential Loss
	 	 	9	 
	10.	 	Indemnification	 	 	10	 
	 

	 	10.1.	 	By Customer
	 	 	10	 
	 

	 	10.2.	 	By Limelight
	 	 	10	 
	 

	 	10.3.	 	Notice Procedure
	 	 	10	 
	12.	 	Termination	 	 	10	 
	13.	 	Survival	 	 	11	 
	14.	 	Insurance	 	 	11	 
	15.	 	Miscellaneous Provisions	 	 	11	 
	16.	 	General	 	 	12	 
	Exhibit A to Co-Location Agreement, Quote	 	 	13	 
	 	 	Term	 	 	13	 
	 	 	Service Charges	 	 	13	 
	 	 	Power:	 	 	13	 
	 	 	Additional Charges:	 	 	13	 
	Exhibit B to Co-Location Agreement, Electrical Schema	 	 	14	 
	Exhibit C to Co-Location Agreement, [Limelight’s]
Co-location Security and Access Procedures	 	 	14	 
	[INSERT]	 	 	14	 
	Exhibit D to Co-Location Agreement: Facility Systems and
Security Requirements	 	 	14	 
	 	 	Exhibit H to Co-Location Agreement:
Customer Space	 	 	14	 

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Definitions

“Customer’s Equipment” means the computer equipment, software, networking hardware or other
materials placed by or for Customer in the Co-location Space.

“Co-location Premises” means Limelight’s facility at [INSERT].

“Co-location Space Fee” means the charge for the space and power in Limelight’s facility as
detailed in Exhibit A Quote.

“Co-location Space” means the physical areas within the Co-location Premises as identified on at
Exhibit H Customer Space.

“Quote” means the quote as set out in Exhibit A Quote provided by Limelight and accepted and
signed by Customer.

“Service(s)” means the provision of the activation services and the making available of Co-location
Space, as more specifically detailed in Exhibit D Facility Systems and Security Requirements.

“Critical Power” shall mean power that is supported by a 2N UPS configuration and a N+1
Generator configuration as detailed in Exhibit B Electrical Schema. If 2N is not available,
Limelight will disclose.

“CBEMA Curve” means 240V AC line voltage, as measured at the PDU or applicable standard of
measurement mutually agreed to, and maintained within the “No Interruption in Function Region”
described in the ITI CBEMA Curve in Exhibit D Facility Systems and Security Requirements Appendix 1
attached hereto.

“Computer Room Air Conditioning Unit(s)” or “CRAC(s)” shall mean the individual air
conditioning/cooling devices that regulate temperature and humidity within the Premises raised
floor space.

“Environmental Conditions” means the temperature and humidity conditions in Customer Space as
described in Exhibit D Facility Systems and Security Requirements Section A.(i)(a).

“HVAC” shall mean the heating, ventilation, and air conditioning system used for environmental
regulation and air filtering.

“HVAC Deficiency” shall mean failure to meet HVAC Demand or the failure to maintain the
Environmental Conditions within the Allowable Range as defined in Exhibit D Facility Systems and
Security Requirements Section A(i) a. An interruption of less than one (1) minute resulting from a
switch from utility power to back-up or generator power shall not be included as an HVAC
Deficiency.

“HVAC Demand” shall mean the quantity of HVAC required to reject the heat generated by the
consumption of electricity within a computer suite in order for Customer to sufficiently conduct
its business operations in such customer suite.

“Customer Representatives” mean the individuals separately notified in writing by Customer to
Limelight (which shall be updated as necessary by Customer from time to time) and authorized by
Customer to enter Customer Space.

“Power Sockets” (the “Power socket(s)”) shall refer to approved electrical power commando
sockets installed by Limelight that meet power requirements, usually for 240 volt.

“Power Deficiency” is defined in Exhibit D Facility Systems and Security Requirements Section
A(ii)(b).

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“Power Distribution Unit” (“PDU”) shall refer to an electrical device that is used to separate
power from a larger source, and deliver it among the data center raised floor space via the static
transfer switches (STS where the PDU’s are fitted with STS devices).

“Power whips” (the “Whip(s)”) shall refer to standard electrical cables that are placed between the
PDU and the rack/cabinet locations. For power delivery to the rack and/or cabinet, the Whip is
connected on one end to the PDU, and on the other end allows for Power Sockets to be connected to
it.

“Service Deficiency” means a Power Deficiency or an HVAC Deficiency, or a deficiency resulting from
security violations as described in Exhibit D Facility Systems and Security Requirements Section
A.(v)(a)(i).

“Static Transfer Switch” (“STS”) is defined as an electrical distribution component that accepts
multiple input power sources and automatically and instantaneously switches the flow of electricity
among those sources to the equipment drawing electricity from the output.

“Termination Charges” means the charges payable if Customer exercises the option to cease occupancy
of the space as detailed in Exhibit A Quote.

1. Provision of Services

Limelight will begin provision of the Services only after it receives and accepts this Agreement
and a Quote (in each case) signed by a Customer authorized representative.

	 	1.1.	 	Service Charges and Billing. In consideration of receipt of the Services, Customer
agrees to pay the monthly charges for Services, indicated on the Quote (the, “Service
Charges”). Billing for monthly Service Charges will begin on the Effective Date set
forth above. Limelight will use its reasonable and commercial endeavors to make the
Facility available for the installation of equipment by Customer by [INSERT DESIRED
DATE].
	 
	 	1.2.	 	Initial Payment. Upon Limelight’s acceptance of this Agreement, Customer shall be
invoiced for all pre-agreed Service Charges relating to activation at the Co-location
Space which will be due [ * ] after the date of completion of the initial
installation. Customer shall also be invoiced for each monthly Service Charges and
Customer will pay such invoice as set forth below.
	 
	 	1.3.	 	Recurring Charges. Limelight will bill Customer monthly in advance for the
Co-location Space (“Co-location Space Fees”), and Customer will pay such invoice as set
forth below.
	 
	 	1.4.	 	Additional works / Services. In the event that Customer requires Limelight to carry
out works or services other than the Services set out in Exhibit D Facility Systems and
Security Requirements the parties shall agree on the charges payable in respect of these
works or services in writing and in advance (the “Additional Charges”). Limelight shall
at the end of each month issue an invoice to Customer in respect of the Additional
Charges and Customer shall pay Limelight each invoice as set forth below.
	 
	 	1.5.	 	Payment. Upon receipt of a correct and undisputed invoice, Customer shall pay the
all undisputed portions of the invoice net [ * ] from the date of the invoice.
Payments shall be made according to Customer’s then-current payment policies, which
include payment via ACH electronic payment to Limelight’s financial institution under
instructions supplied by Limelight in Customer’s ACH Electronic Payment form. Limelight
shall invoice Customer for all amounts via the Customer Invoice online tool in accordance
with the then-current requirements at http://invoice.microsoft.com. All invoices shall be
submitted with line-item detail identifying all aspects of the applicable charges
provided to Customer. Invoices shall not bear an invoice date earlier than the date on
which Limelight shall be entitled to be paid under this Agreement, or if not specified,
invoices may be issued monthly in arrears.
	 
	 	1.6.	 	Customer may dispute any invoice by providing written notice to Limelight within
[ * ] of receiving the invoice (each a “Disputed Amount”). All Disputed Amounts
that Customer agrees in writing to pay, or that are required to be paid pursuant to a
final court order or arbitration award (along

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with any other amounts legally required, e.g., by statute or under this Agreement), shall
be paid on the payment terms set forth in Section 1.5. Payment of an invoice without
asserting a dispute is not a waiver of any claim or right. Failure to dispute an
invoiced amount within the [*] period shall not be deemed a waiver of any claim
unknown to Customer at the time.

2. Co-location

	 	2.1.	 	Use of Space. Limelight shall provide to Customer the Co-location Space, as
specified on the Quote. Customer may use the Co-location Space only for the purposes of
maintaining and operating Customer Equipment. Limelight will be solely responsible for
all activities relating to the operations and maintenance of the Facility, including,
without limitation, all major facilities equipment and infrastructure and systems,
shipping and receiving stations, shipping company access (ingress and egress),
telecommunications systems (but only the telecommunications systems under the Limelight’s
control) and utilities. Limelight will adequately staff the Facility for the provision
of all Services in accordance with the terms and conditions of this Agreement. Limelight
will supply the Co-Location space to the specifications in Exhibit G.
	 
	 	2.2.	 	Hours of Operation. The Facility will have, at a minimum, the following operating
hours:

	 	2.2.1.	 	All Customer Space will operate 24x7, every day of the year.
	 
	 	2.2.2.	 	The Facility loading dock (if available) will operate M-F 8:30 a.m. to 4:30 p.m.
local time (“Loading Dock Hours”) and will be available to Customer during those times
and upon one (1) hour’s notice by Customer’s authorized personnel for all other times.
	 
	 	2.2.3.	 	On-site security will be present 24x7, every day of the year.
	 
	 	2.2.4.	 	Limelight’s emergency point of contact will be available 24x7, every day of the year.
Availability of Limelight’s electrician during 8:30am to 4:30 pm Monday to Friday and
on-call thereafter.

	 	2.3.	 	Customer Equipment. Customer will install Customer Equipment, including bringing
appropriate equipment and tools as is required. Customer will remove all packaging for
Customer Equipment promptly after installation. Limelight will not, directly or
indirectly:

	 	2.3.1.	 	except as ordered by Customer in a Change Order, move, relocate or otherwise remove
Customer Equipment from Customer Space, or allow Customer Equipment to come into
possession of any other person or entity, without Customers express prior written
consent;
	 
	 	2.3.2.	 	sell, transfer, dispose, lend, assign, pledge, hypothecate or grant any security
interest in any Customer Equipment; or
	 
	 	2.3.3.	 	Create or place, or permit or suffer to be created or placed by any third party
acting on Limelight’s behalf, any lien, mortgage, pledge, security interest, charge or
any other encumbrance of any kind whatsoever on any Customer Equipment.

	 	2.4.	 	Access and Security. Customer may access the Co-location Space only in accordance
with ‘Limelight’s Co-location Security and Access Procedures’ as set out in Exhibit C.

	 	2.4.1.	 	Limelight will be solely responsible for providing physical and electronic security
systems for the Facility perimeter and common areas leading up to and including entry
Customer Space. The service level for security and Service Credit for non-compliance
are detailed in Exhibit G Service Level Requirements/ Credits, Section A.

	 	2.5.	 	Illegal Use. Customer will cooperate in any investigation of Customer’s alleged
illegal, unauthorized or unlawful use or use contrary to any Limelight policy of
Limelight facilities, or equipment of any third party or other networks accessed through
the Co-location Premises.

3. Local and Long Distance Carriers. (If Available)

Customer will order, maintain and terminate any data and telecommunications circuits provided to
Customer by local and long-distance carriers. Limelight offers the Facility as Carrier Neutral and
(1) will allow any data or telecommunications provider to utilize existing duct banks to install
copper and fiber cabling and to install equipment to both meet-me rooms and (2) will not
discriminate or offer preferential treatment to individual carriers and (3) will not charge onerous
fees or fees in excess of market rates for the rental or utilization of building entrances, duct
banks or meet-me room space.

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4. Other networks.

Customer will pay any fees, obtain any required approvals and consents and comply with any laws or
usage policies applicable to transmitting data beyond the Network and/or through other public and
private networks. Limelight is not responsible or liable for performance or non-performance of
such networks or their inter-connection points.

5. Power Availability and Climate Control.

Limelight warrants (for Customer’s benefit) [*] power availability on either A or B supply for
Critical Power and an operating temperature [INSERT FOR SPECIFIC FACILITY] for the Co-location
Space measured at top rack level. In the event of a power outage or temperature fluctuation
outside the range of 15 ° to 32 ° Celsius temperature not caused by Customer, Limelight will
credit Customer’s account the pro-rata Co-Location Space Fees (as a “Service Credit”) associated
with the power outage or temperature fluctuation, as detailed in Exhibit G Service Level
Requirement / Credits Section B.

6. Payment of Credits

Limelight will credit Customer for any Service Credits within [*] of the Service
Credit falling due.

7. No Warranty

NO WARRANTY EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, THE SERVICES ARE PROVIDED ON AN AS-IS
BASIS, AND CUSTOMER’S USE OF THE SERVICES AND THE CO-LOCATION SPACE ARE AT CUSTOMER’S OWN RISK.
LIMELIGHT DOES NOT MAKE, AND HEREBY DISCLAIMS, ANY AND ALL OTHER EXPRESS AND IMPLIED WARRANTIES OR
CONDITIONS, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR
A PARTICULAR PURPOSE, NON-INFRINGEMENT AND TITLE, AND ANY WARRANTIES OR CONDITIONS ARISING FROM A
COURSE OF DEALING, USAGE, OR TRADE PRACTICE AND DOES NOT WARRANT THAT THE SERVICES WILL BE
UNINTERRUPTED, ERROR-FREE, OR COMPLETELY SECURE.

8. Warranty

	 	8.1.	 	Authority to agree. Both Parties hereto warrant to each other that they have
obtained and are duly authorized to enter into this Agreement
	 
	 	8.2.	 	Resources. Both Parties hereto warrant they shall provide adequate and sufficient
resources to undertake and perform their respective obligations under this Agreement,
acting at all time with all due skill, professionalism and attention as befits Limelight
and Customer.

9. Limitations of Liability

	 	9.1.	 	Personal Injury. Nothing in this Agreement shall operate to limit or exclude the
respective liability for death, personal injury or liability for fraud caused by the
negligence of Limelight or Customer, or the employees of Limelight or Customer.
	 
	 	9.2.	 	Damage to Customer Equipment. Limelight shall not be liable for damage to, or loss
of any of Customer’s Equipment or other property resulting from any cause, other than
Limelight breach of this Agreement, its negligence and/or willful misconduct.
	 
	 	9.3.	 	Damage to Customer Business. Limelight shall not be liable for any indirect or
consequential loss or damage related to Customer’s business.
	 
	 	9.4.	 	Maximum Liability. Either party’s maximum aggregate liability to the other party
related to or in connection with this Agreement whether in contract, tort (including
negligence), strict liability or otherwise will be limited to the total amount paid by
Customer to Limelight hereunder.
	 
	 	9.5.	 	Consequential Loss. Customer shall not be liable for any indirect or consequential
loss or damage howsoever caused.

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10. Indemnification

	 	10.1.	 	By Customer. Customer will indemnify, defend and hold harmless Limelight, its
directors, officers, employees, affiliates and customers (collectively, the ‘Limelight
Covered Entities’) from and against any and all claims, actions or demands brought
against any of the Limelight Covered Entities in connection with the following

	 	10.1.1.	 	any loss suffered by, damage to or injury of any third party, Customer employees,
agents, sub-contractors and consultants, and any other third party equipment which
loss, damage or injury is caused by or otherwise results from acts or omissions by
Customer (collectively, the ‘Customer Covered Claims’).

	 	10.2.	 	By Limelight. Limelight will defend and hold harmless Customer, its directors,
officers, employees and affiliates (collectively, the ‘Customer Covered Entities’) from
and against any and all claims, actions or demands brought against any of Customer
Covered Entities with respect to:

	 	10.2.1.	 	any loss suffered by, damage to or injury of any third party, Limelight employees,
agents, sub-contractors and consultants, and any other third party equipment which
loss, damage or injury is caused by or otherwise results from acts or omissions by
Limelight (collectively, the ‘Limelight Covered Claims’).

	 	10.3.	 	Notice Procedure. Limelight will provide Customer with prompt written notice of
each Customer Covered Claim of which Limelight becomes aware, and, at Limelight’s sole
option, Limelight may elect to participate in the defense and settlement of any Customer
Covered Claim, provided that such participation shall not relieve Customer of any of its
obligations under this Clause 10 Customer shall have the right to control the defense of
any Customer Covered Claim. Customer will provide Limelight with prompt written notice
of each Limelight Covered Claim of which Customer becomes aware, and at Customer’s sole
option, Customer may elect to participate in the defense and settlement of Limelight
Covered Claim, provided that such participation shall not relieve Limelight of any of its
obligations under this Clause 10 Limelight shall control the defense of any Limelight
Covered Claim.

11. Term

This Agreement will commence on the Effective Date and shall expire at the end of the contract term
specified in the Quote, Exhibit A, unless sooner terminated as provided in Clause 12 below.

12. Termination

	 	12.1.	 	Non-payment. Limelight may suspend Services to Customer if any amount due
hereunder is not paid in full within [*] after Customer is sent an
overdue notice. Limelight may terminate this Agreement (or at its option, only the
relevant Quote) if any amount due hereunder is not paid in full within [*]
after Customer is sent an overdue notice.
	 
	 	12.2.	 	Insolvency/liquidation. Either party may terminate this Agreement upon written
notice to the other party if the other party becomes insolvent or goes into liquidation
or makes any voluntary arrangement with its creditors or becomes subject to an
examination order, or becomes subject to any legal proceedings relating to insolvency,
receivership, liquidation or examination or anything analogous to the foregoing in any
jurisdiction.
	 
	 	12.3.	 	For Other Cause; Convenience. Except as otherwise stated, either party may
terminate this Agreement if the other party breaches any material term or condition of
this Agreement and fails to cure such breach if capable of remedy
within [*] after receipt of written notice of the same. The Customer may, upon 6 months written
notice, terminate this Agreement without cause.
	 
	 	12.4.	 	Effect of Termination. Upon expiration or termination of this Agreement:
Limelight may cease providing the Services,

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	 	12.4.1.	 	Customer shall pay all of Customer payment obligations under this Agreement that
accrue as of the date of termination; and
	 
	 	12.4.2.	 	within [*], Customer will remove all of Customer’s Equipment from
the Co-location Premises and any other Limelight premises and return the Co-location
Space to Limelight in the same condition as it was prior to Customer installation. If
Customer does not remove such property within the [*] period, Limelight
at its option and at Customer’s expense may remove and store Customer’s Equipment.

13. Survival

The parties’ respective representations, warranties, and covenants, together with obligations of
indemnification, confidentiality and limitations and exclusions of liability will survive the
expiration, termination or rescission of this Agreement and continue in full force and effect.

14. Insurance

Limelight shall ensure that all liabilities incurred by Limelight during the provision of the
service are adequately covered by insurance in particular regarding Employer’s Liability,
(including use in connection with the provision of the services) and Public Liability, Professional
indemnity insurance.

15. Miscellaneous Provisions

	 	15.1.	 	Force Majeure. Other than with respect to failure to make payments due hereunder,
neither party shall be liable under this Agreement for delays, failures to perform,
damages, losses or destruction, or malfunction of any equipment, or any consequence
thereof, caused or occasioned by, or due to fire, earthquake, flood, water, the elements,
labor disputes or shortages, utility curtailments and utility power failures which are
not as a result of Limelight’s negligence and/or which have a duration more than 48
hours, explosions, civil disturbances, governmental actions, shortages of equipment or
supplies, unavailability of transportation, acts or omissions of third parties, or any
other cause beyond its reasonable control.
	 
	 	15.2.	 	Confidentiality. [INCORPORATE BY REFERENCE EXISTING NDA]
	 
	 	15.3.	 	No Lease. This Agreement is a services agreement and is not intended to and will
not constitute a lease of or tenancy or other interest in the Co-Location Space,
Co-location Premises or other Limelight premises, or any other real or personal property,
and shall in no way confer or impose upon either party any of the rights or obligations
of landlord and tenant.
	 
	 	15.4.	 	Government Regulations. Customer and Limelight will each comply with all
applicable government regulations.
	 
	 	15.5.	 	Assignment. Neither party may assign its rights or delegate its duties under this
Agreement either in whole or in part to a third party without the prior written consent
of the other which consent will not be unreasonably withheld.
	 
	 	15.6.	 	Notices. Any required notice hereunder will be given in writing and deemed to
have been duly given if delivered personally by hand or by courier; sent by confirmed
facsimile; or posted by registered mail or special delivery, return receipt requested
postage prepaid to either party at the name and address on a signature page of this
Agreement, or at such other address as a party may provide to the other by written
notice. Such notice will be deemed to have been given as of the date it is delivered
personally or by courier, or seventy two (72) hours after dispatch if sent by special
delivery or air courier, or [*] after it is sent by confirmed facsimile or
mailed.
	 
	 	15.7.	 	Relationship of Parties. This Agreement will not establish any relationship of
partnership, joint venture, employment, franchise or agency between the parties.

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	 	15.8.	 	Choice of Law. This Agreement shall be construed and controlled by the laws of
the State of Washington. The parties waive all defenses of lack of personal jurisdiction
and forum non-conveniens. Process may be served on either party in the manner authorized
by applicable law or court rule.
	 
	 	15.9.	 	Reports. Limelight will provide reports relating to the Services, all in a format
and frequency and with content as Customer may reasonably specify to Limelight, as
indicated in Exhibit E Reports.

16. General

This Agreement, together with the Quote(s) and Exhibits is the entire agreement and understanding
of the parties with respect to the subject matter hereof, and supersedes any other agreement or
understanding, written or oral. This Agreement may be modified only through a written instrument
signed by both parties. Should any provision of this Agreement be declared void or unenforceable,
such provision will be deemed amended to achieve as nearly as possible the same economic effect as
the original terms and the remainder of this Agreement will remain in full force and effect. If a
conflict arises between a party’s pre-printed business form and this Agreement, this Agreement will
take precedence.

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Exhibit A to Co-Location Agreement, Quote

Term

The Term of this Agreement is [INSERT]

Service Charges

Limelight Pricing for Customer

[INSERT]

These charges are based on a total Customer Space of [INSERT] square feet as shown in Exhibit H
Customer Space.

Power:

Power / kWh: At cost from [INSERT] + plus [INSERT] per month for humidity and fresh air systems for
Computer Suite 1, and an additional [INSERT] for Computer Suite 2 from date of occupancy. An
administration charge based on the power consumption table below will be added to the power
charges. This system is a shared system which is used for all computer rooms on the first floor of
the Facility. Power will be fully metered for all other Customer components and will be re-charged
at cost.

Monthly Administration Charges:

	 	 	 
	Power Usage	 	Amount
	0 to 500,000 Kwatt hours

	 	 
	500,001 to 1,000,000 Kwatt hours

	 	 
	1,000,001 to 1,500,000 Kwatt hours

	 	 
	1,500,001 to 2,000,000 Kwatt hours

	 	 
	Over 2,000,001 Kwatt hours

	 	 

Additional Charges:

Charges Sheet for change controls request

	 	 	 
	Task	 	Amount
	 
	 	 

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Exhibit B to Co-Location Agreement, Electrical Schema

     [INSERT]

Exhibit C to Co-Location Agreement, [Limelight’s] Co-location Security and Access Procedures

     [INSERT]

Exhibit D to Co-Location Agreement: Facility Systems and Security Requirements

     [INSERT]

Exhibit E to Co-Location Agreement, Reports

     [INSERT]

Exhibit G to Co-Location Agreement, Service Level Requirements / Credits

Limelight will at all times during the term of this Agreement perform in accordance with the
service level requirements set forth in this Exhibit G. Limelight and Customer agree that it is
extremely difficult and impracticable under the currently known and reasonably foreseeable facts
and circumstances to ascertain the actual damages but nonetheless have agreed to a genuine
pre-estimate of loss which Customer would incur should Limelight fail to perform its obligations in
accordance with the service level requirements set forth in this Exhibit. Accordingly, if
Limelight fails to so perform, Customer will be entitled, without limiting any of its other rights
or remedies under this Agreement or otherwise, to receive the credits set forth under the heading
“Noncompliance” as liquidated damages (and not as a penalty), provided that, nothing in this
section shall be interpreted to mean that Customer is entitled to receive credits and/or other
damages in excess of the actual damage Customer sustains. Each noncompliance fee identified below
is a reasonable, good faith estimate of the damage that Customer would suffer for each failure by
Limelight to comply with each corresponding service level requirement, and, subject to any
additional remedies referenced in section D of this Exhibit, is Customer’s sole remedy with respect
to each such failure.

     [INSERT]

Exhibit H to Co-Location Agreement: Customer Space

     [INSERT]

Exhibit I to Co-Location Agreement: Operations Procedures

     [INSERT]

Exhibit J to Co-Location Agreement: Customer Security Requirements /Definitions

     [INSERT]

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EXHIBIT E

FORM OF [*] ECN NODE READINESS CERTIFICATE

Date of Acceptance:                     

Node Location:                     

                                                

                                               

	 	 	 	 	 
	Site Contact if applicable:                     

	 	e-mail:                     
	 	phone:                     

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Accept	 	Punch List
	ECN Node Operational Requirements:	 	 	 	 
	 

	 	•
	 	Review custom customer configuration and requirement for facility; validate all the
contributing components comply.	 	 	 	 
	 

	 	•
	 	All devices are configured in Limelight Standard NMS tools
	 	o
	 	o
	 

	 	•
	 	Confirm all relevant checklists have been completed for circuits, network hardware,
system hardware, and soft configuration.
	 	o
	 	o
	 

	 	•
	 	Verify all configurations with Limelight Engineering standards
	 	o
	 	o

	 

	 	•
	 	Verify Operating Systems are in accordance with Vendor recommendations
	 	o
	 	o
	 

	 	•
	 	Validate that the circuits, backbone and egress capacity is inline with system
and network configuration.
	 	 
	 	 
	 

	 	•
	 	Validate all Limelight Engineering security components are in compliance.
	 	o
	 	o
	 
	 	 	 	 	 	 	 	 
	Additional Backbone Circuit/s:	 	o
	 	o
	 

	 	•
	 	Validate circuit is up and running to Limelight Engineering standards	 	 	 	 
	 

	 	•
	 	All [*] sessions are connected and correct policies are applied	 	 	 	 
	 

	 	•
	 	All circuit IDs and directly connected, device details verified and
	 	o
	 	o
	 

	 	
	 	logged in spreadsheet/DB
	 	 
	 	 
	 

	 	•
	 	Interface description is in place and set to Limelight Engineering standards
	 	o
	 	o
	 

	 	•
	 	[*] is reporting interface and data in graph is valid
	 	o
	 	o
	 

	 	•
	 	Verify engineering allowed a 24 hour burn in time	 	 	 	 
	 

	 	•
	 	All relevant groups and management are advised that circuit/s is operational	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Additional Peering/Transit Circuit/s:	 	o	 	o
	 

	 	•
	 	Validate circuit/s is up and running to Limelight Engineering standards	 	o	 	o
	 

	 	•
	 	All [*] sessions are connected and correct policies are applied and any special
instance notated
	 	o
	 	o
	 

	 	•
	 	All circuit IDs, directly connected device, and circuit bandwidth details verified and
logged in spreadsheet/DB
	 	o
	 	o
	 

	 	•
	 	Interface description is in place and set to Limelight Engineering standards	 	 	 	 
	 

	 	•
	 	[*] is reporting interface and data in graph is valid	 	 	 	 
	 

	 	•
	 	All contact information is logged and distributed amongst relevant groups
	 	o
	 	o
	 
	 	 	 	 	 	 	 	 
	Additional Network Devices:	 	 	 	 
	 

	 	•
	 	Verify role of device	 	 	 	 
	 

	 	•
	 	Validate hardware specs are up to Limelight Engineering standards	 	o	 	o
	 

	 	•
	 	Validate device works on console server(s)
	 	 
	 	 
	 

	 	•
	 	Log device management IP, all interchangeable hardware, software revision, and
attached CSM(s) in spreadsheet/DB	 	o
	 	o
	 

	 	•
	 	Set 24 hour grace period for “In Production” status	 	 	 	 
	 

	 	•
	 	All relevant groups and management are advised that device is operational
	 	 	 	o
	 
	 	 	 	 	 	 	 	 
	Network Device Software/Configuration/Policy Change Management:	 	 	 	 
	 

	 	•
	 	Review and verify change reason(s) and back out plan(s)	 	 	 	 
	 

	 	•
	 	Determine impact to Network and/or Customer services	 	 	 	 
	 

	 	•
	 	Notify all relevant customers and peers of maintenance and time line	 	 	 	 
	 

	 	•
	 	Track maintenance progression during possible outage	 	 	 	 
	 

	 	•
	 	Validate maintenance was completed to specifications and log all issues	 	 	 	 
	 

	 	•
	 	Notify all relevant customers and peers that maintenance was completed	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Site/Equipment Deployment:	 	 	 	 
	 

	 	•
	 	Review schedule timeline and advise if any discrepancies are found	 	 	 	 
	 

	 	•
	 	Review maintenance windows for conflicts, determine Network/Customer impact and notify
all relevant customers and peers if one is present	 	 	 	 
	 

	 	•
	 	Schedule remote hands with relevant POP and verify 24 hours prior that remote hands
ticket is still in place and that a technician has been assigned to it.	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Performance Testing:	 	 	 	 
	 

	 	•
	 	Keynote – Will be used to test Global Availability, and Load Testing	 	 	 	 
	 

	 	•
	 	Lab testing – Use of licensed and custom traffic generation software will be used to
test the load of the designed solution	 	 	 	 

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Terms of Acceptance are set forth in Section 2 of the Agreement.

Punch List Items:

 

 

 

 

 

 

 

 

 

	 	 	 
	Microsoft Corporation	 	Limelight Networks, Inc.
	Name:

	 	Name:
	Title:

	 	Title:
	Signature:

	 	Signature
	Date:

	 	Date:

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EXHIBIT F

CRITERIA FOR DETERMINING ECN NODE READINESS

Limelight will use the ECN process, test and checklist as outlined in Exhibit E. Limelight and
Microsoft will jointly develop the specification for each particular [*] ECN Node. Limelight will
test the Microsoft instantiated architecture (combination of Limelight Software and Microsoft
Hardware Standards) in the Limelight test harness, with the same process and acceptance criteria
that Limelight uses to test and accept their own systems. Upon successful testing, Limelight will
use the Microsoft instantiation as the basis for its standard deployments. After deployment,
Limelight will use the deployment checklist in Exhibit E and successfully conduct the following
series of tests (similar to the Content Delivery Service Agreement — Exhibit 4) to ensure the [*]
ECN Node is performing at or above that level of service. Once the Node meets all the service level
agreement (SLA) requirements Limelight will turn the [*] ECN Node over to Microsoft for acceptance.

Keynote is referenced below — Microsoft and Limelight agreed to use a 3rd party system
such as Keynote or Gomez to perform these tests.

Limelight Networks will generate an artificial load of the lesser of (i) two (2) Gbps and (ii) [*]
of ECN capacity for 24 hours and run Keynote or Gomez against the [*] ECN Node to verify
performance and availability.

Small Object/File Caching and File [*] Services

Small Object/File Caching Service Levels — Keynote

	 	 	 	 	 	 	 	 	 
	 	 	North America/Europe	 	Asia
— ROW
	Daily Availability (%)
	 	 	[*]	 	 	 	[*]	 
	Performance Improvement
	 	 	[*]	 	 	 	[*]	 
	over Origin (%) (when excluding DNS
lookup times)
	 	 	 	 	 	 	 	 

	1.	 	Microsoft will select from Keynote’s list of standard groups of agents that are generally
available and that have at least thirty five (35) geographically and network globally diverse
locations in major metropolitan areas (excludes China).

	2.	 	All Keynote test data to be made available via Microsoft’s Keynote test account. For purposes
of clarification, all Keynote days are calculated as GMT.

	3.	 	Keynote tests (frequency of one test per hour per agent) will be configured to perform two
(2) http GET operations each hour according to the model below:

	 	a.	 	A test file (defined in Section (5) below) will be placed on the Microsoft
origin server (i.e., origin.customer.com).
	 
	 	b.	 	One GET operation will be performed to retrieve the file directly from the
origin server (i.e. http://origin.customer.com/testobject).
	 
	 	c.	 	The other GET operation will be performed to retrieve the file through the [*]
ECN Node, by requesting the object from the appropriate customer hostname CNAMEd to
Limelight (i.e., http://www.customer.com/testobject, where www.customer.com is CNAMEd
to Limelight and configured to pull content from origin.customer.com)

	4.	 	The Limelight test object will have a TTL of 6 hours or greater.

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	5.	 	The test content will be a file of approximately 10 KB in size or in certain cases; the file
may larger if the typical file size of the property using the Limelight service exceeds 10 KB.
In the later case, Limelight must approve in advance the file used for testing.

	6.	 	Raw data will be trimmed once per day to eliminate any measurements that came from an agent
experiencing technical problems during the measurement period.

	7.	 	The Availability metrics (as set above) will be based on a daily average of the service and
Microsoft’s production web server (measured directly), computed from data captured across all
regions and hits.

File [*] Service Levels — Performance and Availability Metrics

	 	 	 	 	 	 	 	 	 
	Keynote Set:	 	North America/Europe	 	Asia-ROW
	Daily Availability (%)
	 	 	[*]	 	 	 	[*]	 
	Daily Performance Improvement
	 	 	[*]	 	 	 	[*]	 
	over Origin (%) (excluding DNS
Lookup)
	 	 	 	 	 	 	 	 

	1.	 	Microsoft will select from Keynote’s list of standard groups of agents that are generally
available and that have at least thirty five (35) geographically and global network diverse
locations in major metropolitan areas (excludes China).

	2.	 	All keynote test data to be made available via Microsoft’s Keynote test account. For purposes
of clarification, all Keynote days are calculated as GMT.

	3.	 	Keynote tests (frequency of one test per hour per agent) will be configured to perform two
(2) http GET operations each hour according to the model below:

	 	a.	 	A test file (as described in Section (5) below) will be placed on the
customer’s origin server (i.e., origin.customer.com).

	4.	 	One GET operation will be performed to retrieve the file directly from the origin server
(i.e. http://origin.customer.com/testobject).

	5.	 	The other GET operation will be performed to retrieve the file through the [*] ECN Node, by
requesting the object from the appropriate customer hostname CNAMEd to [*] ECN Node (i.e.,
http://www.customer.com/testobject, where www.customer.com is CNAMEd to [*] ECN Node and
configured to pull content from origin.customer.com)

	6.	 	The [*] ECN Node test object will have a TTL of 6 hours or greater.

	 
	7.	 	The test content will be a file of approximately 1 MB in size.

	8.	 	Raw data will be trimmed once per day to eliminate any measurements that came from an agent
experiencing technical problems during the measurement period.

Service Level Agreements for Streaming, Storage, and DNS Services

Streaming Service Level Agreement — Service Levels

	 	•	 	[*] Uptime — The [*] ECN Node will serve content [*] of the time. [*] uptime is
defined as no outages during a 24 hour period.

Monitoring Methodology

	1.	 	Microsoft will contract with Keynote Systems to perform the monitoring defined herein.
Microsoft will be responsible for the cost of this testing and for coordinating execution of
the testing with Keynote, but will provide Limelight with access to the relevant testing
account to enable Limelight to track the testing hereunder and investigate any potential
performance issues.

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	2.	 	The polling mechanism will request the test file from the [*] ECN Node.
	 
	3.	 	Polling will occur at approximately 15 minute intervals.
	 
	4.	 	Each test request will last 60 seconds during which time various measurements are collected
to determine performance under the service commitments described above.
	 
	5.	 	Raw data will be verified at least daily to eliminate any measurements that came from an
agent experiencing technical problems during the measurement period.
	 
	6.	 	The test file will meet the following criteria:

	 	a.	 	The [*] ECN Node test object will have a TTL of 2 hours or greater.
	 
	 	b.	 	The file storage location will be mutually agreed to by Microsoft and
Limelight, but such approval will not be unreasonably withheld.

	 	i.	 	The file will be a Windows Media file.
	 
	 	ii.	 	The encoding parameters of the file must be
mutually agreed to by Microsoft and Limelight, but such approval will not
be unreasonably withheld.

Storage Service Level Agreement — Service Levels

	 	•	 	[*] Uptime — The [*] ECN Node will serve content [*] of the time. [*] Uptime is
defined as no Outages in a 24 hour period.

Monitoring Methodology

	 	•	 	From at least six (6) geographically and network diverse locations in major
metropolitan areas, Limelight will simultaneously poll a test file residing on the
Microsoft’s production servers and on the [*] ECN Node’s network
	 
	 	•	 	The polling mechanism will perform a GET operation for a test file stored on [*] ECN
Node Storage:

	 	•	 	Polling will occur at approximately 15 minute intervals.
	 
	 	•	 	Raw data will be trimmed once per day to eliminate any measurements
that came from an agent experiencing technical problems during the measurement
period.
	 
	 	•	 	The test file will meet the following criteria:

	 	•	 	The [*] ECN Node test object will have a TTL of 0 to ensure that
requests are passed through the [*] ECN Node network to the network Storage
	 
	 	•	 	The test content will be a file of approximately 10 KB in size.

DNS Service Level Agreement — Service Levels

	 	•	 	[*] Uptime — The [*] ECN Node will have no outages in a 24 hour period.

Monitoring Methodology

	 	•	 	From at least five (5) geographically and network diverse locations in major
metropolitan areas, Limelight will make a request to the hostname CNAME’d to the [*] ECN
Node DNS service.
	 
	 	•	 	Polling will occur at approximately 3 minute intervals.
	 
	 	•	 	Raw data will be trimmed once per day to eliminate any measurements that came from an
agent experiencing technical problems during the measurement period.

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EXHIBIT G

PRESS
RELEASE

LIMELIGHT NETWORKS TEAMS WITH MICROSOFT

TO DELIVER NEXT GENERATION NETWORK

Technology and Services Agreement Will Improve the Performance, Scalability, and Reliability of

Microsoft’s Online Services for Consumers

March XX, 2007 — Tempe, AZ — Limelight Networks, Inc. today announced that it has entered into a
major new technology and services agreement with Microsoft under which Limelight will help improve
the performance, scalability, and reliability of Internet delivery of media content and online
services, including video, music, games, software, and social media, across Microsoft’s global
internet properties. Under the agreement, Microsoft and Limelight will cross-license certain
technologies, consider joint development projects in the future, and cooperate on extending and
improving their respective technology infrastructures. Microsoft and Limelight have also entered
into a multi-year relationship under which Limelight Networks will continue to provide global media
streaming and content delivery services to Microsoft.

The new technology and services agreement is aimed at radically improving user experiences across
the Internet media properties of Microsoft’s globally scaled internet services, which today serve
over 460 million unique users per month worldwide. By working together to solve, over time, the
Internet’s challenges of media content performance, scale and reliability, Microsoft and Limelight
intend to deliver true globally scaled media-caliber experiences to Internet-connected users, to
any device and in any format anywhere in the world.

“Today’s digital media initiatives only hint at the full potential of the Internet as a channel for
distribution of traditionally produced content and as a platform for the creation of new forms of
media and entertainment content,” said xxx, title of Microsoft. “Our agreement with Limelight
Networks anticipates Internet audiences and content offerings that are orders of magnitude larger
than today. Limelight’s vision, service and technology leadership in Internet delivery of media is
a perfect fit with our own vision and initiatives toward the future.”

“Microsoft is widely recognized as a global leader in digital entertainment,” said Jeff Lunsford,
chairman and CEO of Limelight Networks. “We are proud to have been chosen for this strategic
initiative based on our network and technology’s performance in delivering video for MSNBC.com and
game content and video downloads for Xbox Live. Microsoft’s vision for a connected experience
closely aligns with our own, including delivery services for the next generation, high definition
Internet.”

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and
solutions that help people and businesses realize their full potential.

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About Limelight Networks

Limelight Networks is the high performance content delivery network for digital media, providing
massively scalable, global delivery solutions for on-demand and live Internet distribution of
video, music, games and downloads. Limelight Networks’ infrastructure is optimized for the large
object sizes, large content libraries, and large audiences associated with compelling rich media
content. Limelight Networks is the content delivery network of choice for more than 700 of the
world’s top media companies. For more information, visit:
http://www.llnw.com

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Addendum to the

Edge Computing Network Service and License Agreement

     This Addendum to the Edge Computing Network Service and License Agreement (the “Addendum”)
between Limelight Networks, Inc., a Delaware corporation (“Limelight”), and Microsoft Corporation,
a Washington corporation (“Microsoft”) is effective as of the 19th day of March, 2007
(“Addendum Effective Date”). This Addendum amends that certain Edge Computing Network Service and
License Agreement between Limelight, and Microsoft dated as of the 1st day of March, 2007 (the
“Original Agreement”). Capitalized terms used but not defined in this Addendum shall have the
meaning ascribed to them in the Original Agreement. Except as expressly set forth in this
Addendum, the Original Agreement remains in full force and effect.

Recitals

     WHEREAS, Microsoft and Limelight have executed the Original Agreement and concurrently desire
to amend certain terms related to the Limelight Software exception and Traffic Commitment; as set
forth in this Addendum;

     NOW, THEREFORE, the Parties hereby agree as follows

Addendum

1. TIME LIMITING LICENSE EXCEPTION. Section 3(c) of the Original Agreement shall be deleted in its
entirety and replaced with the following:

     Section 3 (c) Limelight Software License Exception. The license
granted by Limelight in Section 3(b) does not include the right to use Limelight
Software to [*] during the Exception Period, as defined below. “Exception Period”
means the time period commencing on [*] and ending on [*]. Limelight acknowledges
and agrees that neither of the following is [*] (i) Microsoft services that are [*],
including, but not limited to, those offered under [*], and (ii) Microsoft’s
services that are [*]. The Limelight Software License is subject to the limitations
expressly set forth in Section 5(a)(3) (Payment of Software License Fee) and Section
17 (d) (Termination/Survival of Limelight Software License).

2. LIMITING LIMELIGHT SOFTWARE TO EXISTING VERSION.

     (a) Replacing Updates with Fixes. The last sentence of Section 3(a) of the Original Agreement
shall be deleted in its entirety and replaced with the following:

Limelight Software also includes (i) the know-how and trade secrets expressly set
forth in Exhibit C-2 (the “Know-How and Trade Secrets”) and (ii) Fixes.

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     (b) Removing Limelight Software [*] & Updates. Section 3(e) of the Original Agreement shall be
deleted in its entirety and replaced with the following:

     Section 3 (e) Limelight Software, Documentation & Fixes. Limelight has no
obligation to provide Microsoft [*](“Limelight Software [*]). Limelight shall,
through the earlier of [*], and the termination date of this Agreement, provide
Microsoft any error corrections intended to mitigate software defects that directly
and adversely affect the core service operation, that [*] to the extent that such
error corrections are separately identifiable as applicable solely to the Limelight
Software, all in [*] and [*] (each a “Fix,” and
collectively, the “Fixes”). In no event shall Limelight be required under this
Agreement to develop Limelight Software error correction due to a problem that is
not attributable to Limelight. Limelight shall, through the earlier of [*], and the
termination date of this Agreement, provide Microsoft with reasonable access to
intermediate check-ins, final-form [*], designs, diagrams, specifications,
requirements, test plans, prototypes and development history for the Limelight
Software for which Limelight has the right to disclose [*], and will
identify all other software [*].

     (c) Limelight Software License Fee. The last paragraph of Section 5(a)(3) of the Original
Agreement shall be deleted in its entirety and replaced with the following:

     For purposes of clarity, the Limelight Software License Fee is the entire payment
Microsoft will owe Limelight for Limelight Software license fees, including, Fixes,
if any, regardless of how many Fixes Limelight delivers. For purposes of clarity,
in the event this Agreement terminates or expires prior to Microsoft’s issuance of
the Limelight Software Acceptance, then Microsoft will have no obligation to pay the
Limelight Software License Fee and the Limelight Software License shall expire as of
the date of termination or expiration, as applicable, of this Agreement.

3. TRAFFIC COMMITMENT.

     (a) Lengthening Traffic Commitment to [*]. The first paragraph of Section 6(c) of the
Original Agreement shall be deleted in its entirety and replaced with the following:

During the time period commencing on [*] and ending [*] from the Effective Date, and
subject to terms, conditions and limitations set forth in this Agreement, Microsoft
shall meet the Traffic Commitment, defined below.

     (b) Increasing Traffic Commitment by [*]. The first sentence of Section 6(c)(1) of the
Original Agreement shall be deleted in its entirety and replaced with the following:

“Traffic Commitment” means total usage of CDN Services, where Services are as
defined in and used under the Limelight Content Delivery Service Agreement for all
Microsoft properties and/or online services in all markets worldwide representing
the sum of the billable traffic rate calculated for each month (except for Excluded Service Traffic, defined below) and equal to [*] Mbps-[*] over the

 
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time
period starting [*] (the “Traffic Commitment Start Date”), and ending [*] from the
Effective Date (the “Traffic Commitment End Date”), subject to any adjustments as
set forth in this Agreement.

     (c) Modifying Adjustments to Traffic Commitment. The first sentence of Section 6(c)(2)(i) of
the Original Agreement shall be deleted in its entirety and replaced with the following:

In the event that this Agreement terminates early such that the Term is less than
[*], then the Traffic Commitment shall be reduced pro rata based on the actual time
period of the Term of this Agreement as compared to [*] (for example, if the Term is
[*], then the Traffic Commitment shall be reduced by [*]).

     (d) Including [*] [*] for Traffic Commitment. Section 6(c)(4) of the Original Agreement shall
be deleted in its entirety and replaced with the following:

     Section 6(c)(4). Failure to [*] Traffic Commitment.

     (i) [*]. If, by [*] (the “[*] Traffic Commitment End Date”), Microsoft
has not met [*] of the Traffic Commitment (the “[*] Traffic Commitment Minimum”),
then, subject to all terms, conditions and limitations in this Agreement, Microsoft
shall pay Limelight an amount equal to (i) that amount of the [*] Traffic Commitment
Minimum not attained as measured in Mbps multiplied by (ii) the weighted average
price per Mbps (that is, total invoiced amount in US dollars, or if in another
currency, converted into US dollars, divided by the total traffic in Mbps) using the
actual traffic volume and invoiced amounts for traffic applicable to the Traffic
Commitment over the [*] months prior to the [*] Traffic Commitment End Date (the
“[*] Traffic Commitment Payment”).

     (ii) [*]. If, by [*] (the “[*] Traffic Commitment End Date”),
Microsoft has not met [*] of the Traffic Commitment (the “[*] Traffic Commitment
Minimum”), including any Traffic Commitment satisfied through any prior Traffic
Commitment Payments, then, subject to all terms, conditions and limitations in this
Agreement, Microsoft shall pay Limelight an amount equal to (i) that amount of the
[*] Traffic Commitment Minimum not attained as measured in Mbps multiplied by (ii)
the weighted average price per Mbps (that is, total invoiced amount in US dollars,
or if in another currency, converted into US dollars, divided by the total traffic
in Mbps) using the actual traffic volume and invoiced amounts for traffic applicable
to the Traffic Commitment over the [*] months prior to the [*] Traffic Commitment
End Date (the “[*] Traffic Commitment Payment”).

     (iii) [*] If, by [*] (the “[*] Traffic Commitment End Date”),
Microsoft has not met [*] of the Traffic Commitment (the “[*] Traffic Commitment
Minimum”), including any prior Traffic Commitment satisfied through any Traffic
Commitment Payments, then, subject to all terms, conditions and limitations in this
Agreement, Microsoft shall pay Limelight an amount equal to (i) that amount of the
[*] Traffic Commitment Minimum not attained as measured in Mbps multiplied by (ii)
the weighted average price per Mbps (that is, total invoiced amount in US dollars, or if in another currency, converted into
US

 
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 dollars, divided by the total traffic in Mbps) using the actual traffic volume
and invoiced amounts for traffic applicable to the Traffic Commitment over the [*]
months prior to the [*] Traffic Commitment End Date (the “[*] Traffic Commitment
Payment”).

     (iv) [*]. If, by [*] (the “[*] Traffic Commitment End Date”),
Microsoft has not met [*] of the Traffic Commitment (the “[*] Traffic Commitment
Minimum”), including any prior Traffic Commitment satisfied through any Traffic
Commitment Payments, then, subject to all terms, conditions and limitations in this
Agreement, Microsoft shall pay Limelight an amount equal to (i) that amount of the
[*] Traffic Commitment Minimum not attained as measured in Mbps multiplied by (ii)
the weighted average price per Mbps (that is, total invoiced amount in US dollars,
or if in another currency, converted into US dollars, divided by the total traffic
in Mbps) using the actual traffic volume and invoiced amounts for traffic applicable
to the Traffic Commitment over the [*] months prior to the [*] Traffic Commitment
End Date (the “[*] Traffic Commitment Payment”).

     (v) [*] If, by the Traffic Commitment End Date, Microsoft has not met
the [*], then, subject to all terms, conditions and limitations in this Agreement,
Microsoft shall pay Limelight an amount equal to (i) that amount of the Traffic
Commitment not attained as measured in Mbps including any Traffic Commitment
satisfied through any prior Traffic Commitment Payments made multiplied by (ii) the
weighted average price per Mbps (that is, total invoiced amount in US dollars, or if
in another currency, converted into US dollars, divided by the total traffic in
Mbps) using the actual traffic volume and invoiced amounts for traffic applicable to
the Traffic Commitment over the [*] prior to the Traffic Commitment End Date (the
“[*] Traffic Commitment Payment”).

     (vi) For example, if by [*]Microsoft has satisfied [*] Mbps-months of the
entire Traffic Commitment, and the weighted average price per Mbps for [*] was [*]
per Mbps, then the [*] Traffic Commitment Payment would be equal to:[*], and upon
payment of such amount, the amount of Traffic Commitment satisfied as of [*] would
be equal to [*] of the Traffic Comment. The [*] Traffic Commitment Payment, [*]
Traffic Commitment Payment, [*] Traffic Commitment Payment, [*] Traffic Commitment
Payment, and [*] Traffic Commitment Payment are each a “Traffic Commitment Payment,”
and collectively the “Traffic Commitment Payments.” Microsoft will pay any Traffic
Commitment Payment under the terms of Section 5(c)-(e), subject to Limelight’s
submission of an invoice, as set forth in Section 5(d).

4. EXTEND TERM OF AGREEMENT TO [*]. Section 17(a) of the Original Agreement shall be deleted in
its entirety and replaced with the following:

     Section 17 (a) Duration. Subject to Section 17(b)-(c) hereof, the period of
time during which this Agreement shall be in effect (the “Term”) commences on the
Effective Date and shall continue for a period of [*] thereafter. This Agreement
shall be renewable by mutual agreement of Microsoft and Limelight.

 
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In the event of any conflict between this Addendum and Original Agreement, this Addendum shall
control.

	 	 	 	 	 	 	 	 	 	 	 
	Limelight Networks, Inc.	 	 	 	Microsoft Corporation	 	 
	2220 West 14th Street	 	 	 	One Microsoft Way	 	 
	Tempe, AZ 85281	 	 	 	Redmond, WA 98052	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature:

	 	/s/ Jeffrey W. Lunsford
	 	 	 	Signature:
	 	/s/ Debra Chrapaty	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Printed Name: Jeffrey W. Lunsford	 	 	 	Printed Name: Debra Chrapaty	 	 
	Title: CEO	 	 	 	Title: Vice President	 	 
	Date: 3/20/07	 	 	 	Date: 3/19/07	 	 

 
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Exhibit-10.15

Edge Computing Network Service and License Agreement

     This Edge Computing Network Service and License Agreement (the “Agreement”) between Limelight
Networks, Inc., a Delaware corporation (“Limelight”), and Microsoft Corporation, a Washington
corporation (“Microsoft”) is effective as of the 1st day of March, 2007 (“Effective
Date”). Limelight and Microsoft are sometimes jointly referred to as the “Parties” and
individually referred to as a “Party.”

Recitals

WHEREAS, Limelight is in the business of providing content delivery network services; and

WHEREAS, Microsoft is the business of providing software, services and Internet technologies for
personal and business computing; and

WHEREAS, Microsoft desires to establish an edge computing network and technology that is an
extension of currently existing content delivery networks; and

WHEREAS, Microsoft desires to utilize Limelight’s expertise in building, maintaining and supporting
an edge computing network; and

WHEREAS, Limelight is prepared to (1) perform certain professional services, (2) perform certain
support services, and (3) license software, know how, trade secrets, and pending patent rights
pursuant to the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained herein, the
sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

Agreement

1. DEFINITIONS.

     “Advance” shall have the meaning given in Section 5(b).

     “Additional Professional Services Payment” shall have the meaning given in Section 2(e).

     “Agreement” shall mean this Edge Computing Network Service and License Agreement, including
all exhibits and other attachments hereto, as the same may be amended from time to time.

     “Catch Up Payment” shall have the meaning given in Section 2(e).

     “Confidential Information” shall have the meaning given in the NDA.

     “CDN” means content delivery network.

     “Disputed Amount” shall have the meaning given in Section 5(e).

     “ECN Node Co-Location Agreement” shall have the meaning given in Section 2(a).

     “Effective Date” shall have the meaning given in the first paragraph of this Agreement.

     “Enhanced [*] Manager” shall have the meaning given in Section 4(a).

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     “Enhanced [*] Manager IPR” shall have the meaning given in Section 4(a).

     “Excluded License” shall have the meaning given in Section 4(b).

     “Excluded Service Traffic” shall have the meaning given in Section 6(c).

     “Excluded Software” shall have the meaning given in Section 3(a).

     “Fees” shall have the meaning given in Section 5(a).

     “Fix” shall have the meaning given in Section 3(e).

     “First [*] ECN Node” shall have the meaning given in Section 2(b).

     “Force Majeure” means any cause beyond a Party’s reasonable control, including acts of war,
acts of God, terrorism, earthquake, flood, embargo, riot, sabotage, labor shortage or dispute,
governmental act or failure of the Internet (not resulting from the actions or omissions of such
Party).

     “Form Co-Location Agreement” shall have the meaning given in Section 2(a).

     “Interconnection Points” shall have the meaning given in Section 8(a).

     “Intellectual Property Rights” means all trade secrets, patents, copyrights, trademarks, moral
rights, and any similar rights of any type under the laws of any governmental authority, domestic
or foreign, as well as applications for any such rights.

     “Know-How and Trade Secrets” has the meaning given in Section 3(a).

     “Licensed Patents” shall have the meaning given in Section 7(a).

     “Licensed Pending Patents” shall have the meaning given in Section 7(b)

     “Limelight Change of Control” shall mean a transaction or a series of related transactions:
(i) in which one or more related parties that did not previously own or control at least a fifty
percent (50%) equity interest in Limelight, obtains ownership or control of at least a fifty
percent (50%) equity interest in Limelight; or (ii) in which Limelight sells all or substantially
all of its assets.

     “Limelight Claims” shall have the meaning given in Section 14(b).

     “Limelight Indemnified Parties” shall have the meaning given in Section 14(b).

     “Limelight Content Delivery Service Agreement” means that certain Content Delivery Service
Agreement dated as of March 1, 2007 between Microsoft and Limelight.

     “Limelight Software” shall have the meaning given in Section 3(a).

     “Limelight Software Acceptance” shall have the meaning given in Section 3(d).

     “Limelight Software Delivery Date” shall have the meaning given in Section 3(d).

     “Limelight Software Fee” shall have the meaning given in Section 5(a).

     “Limelight Software [*]” shall have the meaning given in Section 3(e).

     “Limelight Technical Support Director” shall have the meaning given in Section 6(c).

     “Party” or “Parties” shall have the meaning given in the first paragraph of this Agreement.

  

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     “Microsoft Affiliate” shall mean any entity that directly or indirectly controls, is
controlled by or is under common control of Microsoft.

     “Microsoft Claims” shall have the meaning given in Section 14(a).

     “Microsoft Edge Computing Network Support Services” shall have the meaning given in Section
2(c).

     “Microsoft Edge Computing Network Specifications” shall have the meaning given in Section
2(a).

     “[*] ECN Node” and “[*] ECN Nodes” shall have the meaning given in Section 2(a).

     “[*] ECN Node Acceptance” shall have the meaning given in Section 2(b).

     “[*] ECN Node Rejection” shall have the meaning given in Section 2(b).

     “[*] ECN Node Space” shall have the meaning given in Section 2(a).

     “[*] ECN Node Equipment/Connectivity” shall have the meaning given in Section 2(a).

     “Microsoft Indemnified Parties” shall have the meaning given in Section 14(a).

     “Microsoft Modifications” shall have the meaning given in Section 3(f).

     “Microsoft Responsibilities” shall have the meaning given in Section 2(b).

     “[*] Traffic” shall have the meaning given in Section 6(c).

     “MVG” shall mean the Microsoft Vendor Guidelines which may be modified by Microsoft from time
to time and which are available at http://www.microsoft.com/about/companyinformation/procurement/process/contracting.asp. In the
event there is a conflict between the MVG and this Agreement, then this Agreement shall control.

     “NDA” shall have the meaning given in Section 10(a).

     “Patent Claims” shall have the meaning given in Section 14(a).

     “Peer Route Utilization” shall have the meaning given in Section 8(c).

     “Personal Information” shall have the meaning given in Section 12(a).

     “Professional Services” shall have the meaning given in Section 2(a).

     “Professional Services Fees” shall have the meaning given in Section 5(a).

     “Professional Services Fee End Date” shall have the meaning given in Section 2(e).

     “Publicly Available Software” shall mean each of (i) any software that contains, or is derived
in any manner (in whole or in part) from, any software that is distributed as free software, open
source software (e.g., Linux) or similar licensing or distribution models; and (ii) any software
that requires as a condition of use, modification and/or distribution of such software
that such software or other software incorporated into, derived from or distributed with such
software (a) be disclosed or distributed in source code form; (b) be licensed for the purpose of
making derivative works; or (c) be redistributable at no charge. Publicly Available Software
includes, without limitation, software licensed or distributed under any of the following licenses

 

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or distribution models, or licenses
or distribution models similar to any of the following: (a)
GNU’s General Public License (GPL) or Lesser/Library GPL (LGPL), (b) The Artistic License (e.g.,
PERL), (c) the Mozilla Public License, (d) the Netscape Public License, (e) the Sun Community
Source License (SCSL), (f) the Sun Industry Source License (SISL), and (g) the Apache Server
license.

     “Readiness Criteria” shall have the meaning given in Section 2(b).

     “Services” shall mean Professional Services, Support Services, and any other services
performed by Limelight under this Agreement.

     “Software Error” shall have the meaning given in Section 3(d).

     “Streaming” means the transfer of data in a stream of packets that are interpreted and
rendered, in real time, by a software application as the packets arrive.

     “Subcontractor” shall have the meaning given in Section 9.

     “Support Services” shall have the meaning given in Section 2(c).

     “Successful Test Deployment” shall have the meaning given in Section 3(d).

     “Support Services Fees” shall have the meaning given in Section 5(a).

     “Traffic Commitment” shall have the meaning given in Section 6(c).

     “Traffic Commitment End Date” shall have the meaning given in Section 6(c).

     “Traffic Commitment Payment” shall have the meaning given in Section 6(c).

     “Traffic Commitment Report” shall have the meaning given in Section 6(c).

     “Traffic Commitment Start Date” shall have the meaning given in Section 6(c).

     “Term” shall have the meaning given in Section 17(a).

     “Transition Period” shall have the meaning given in Section 17(e).

     “Update” shall have the meaning given in Section 3(e)

     “[*] Traffic” shall have the meaning given in Section 6(c).

2. LIMELIGHT SERVICES.

     (a) Building [*] ECN Nodes. Limelight shall provide professional services (“Professional
Services”) to assist Microsoft in architecting, designing, and building Microsoft edge computing
node facilities at specified locations, as recommended by Limelight and as finally determined by
Microsoft, around the world (each, a “[*] ECN Node”, and collectively, the “[*] ECN Nodes”) [*],
consistent with the operations, specifications, timelines, and other requirements contained in
Exhibit A-1 to this Agreement (“Microsoft Edge Computing Network Specifications”).

     1. Initial Planning. Limelight and Microsoft shall meet one or more times (split
between Redmond, WA and Phoenix, AZ) for initial planning to develop a summary plan, along
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necessary, for
architecting, designing and building the First [*] ECN Node (defined below) integrated with
Limelight’s CDN logical locations.

     2. [*] ECN Node Space. Microsoft shall be responsible for obtaining space for [*] ECN
Nodes (“[*] ECN Node Space”). To assist Microsoft in obtaining [*] ECN Node Space, at
Microsoft’s request, Limelight shall give Microsoft notice if the option is available for
Microsoft to obtain [*] ECN Node Space through co-location in Limelight content delivery
network facilities. If so, then Microsoft’s use shall be under the terms of the form
co-location agreement set forth in Exhibit D (the “Form Co-Location Agreement”).
In such case, Limelight and Microsoft shall (i) complete the Form Co-Location Agreement for
a particular [*] ECN Node or other necessary equipment (e.g., a single server) (the “ECN
Node Co-Location Agreement”) and (ii) sign such ECN Node Co-Location Agreement prior to the
deployment of the applicable [*] ECN Node for such ECN Node Co-Location Agreement. Once an
ECN Node Co-Location Agreement has been executed by both Parties, Microsoft’s responsibility
for all charges associated with such [*] ECN Node (except for Support Services) shall be as
set forth in the applicable ECN Node Co-Location Agreement.

     3. [*] ECN Node Equipment & Connectivity. As part of the Professional Services
Limelight provides Microsoft under this Agreement, Limelight shall identify in writing the
equipment and connectivity needed for [*] ECN Nodes (“[*] ECN Node Equipment/Connectivity”)
and shall update the list of identified [*] ECN Node Equipment/Connectivity from time to
time as is reasonably necessary. It shall be Microsoft’s responsibility to obtain [*] ECN
Node Equipment/Connectivity.

     (b) [*] ECN Node Readiness.

     1. Initial Deployment will be One [*] ECN Node. Limelight and Microsoft agree that the
initial deployment under this agreement will be one [*] ECN Node [*] (the “First [*] ECN
Node”). Limelight and Microsoft further agree that the First [*] ECN Node will be deployed
in Microsoft’s [*] facility or such other location in the United States as the Parties
agree. The process for accepting the First [*] ECN Node is set forth below. The Parties
agree that no subsequent [*] ECN Nodes will be deployed, and Limelight has no obligation to
perform, or to continue to perform, any services in support
of the deployment of any subsequent [*] ECN Nodes, until after Microsoft has accepted
the First [*] ECN Node and has issued the Limelight Software Acceptance.

     2. Subsequent Deployment of [*] ECN Node. Upon completion of a [*] ECN Node
(including, for purposes of clarity, the First [*] ECN Node), Limelight shall provide
Microsoft an ECN Node Readiness Certificate in the form of Exhibit E along with all
materials supporting such ECN Node Readiness Certificate. The completion criteria that
Limelight shall use in assessing ECN Node readiness shall be substantially the same as the
criteria that Limelight uses in assessing the readiness of its own new CDN logical locations
(the “Readiness Criteria”). The current criteria that Limelight uses in assessing the
readiness of its own new CDN logical locations are provided in Exhibit F and may be
updated by Limelight from time to time upon notice to Microsoft. Microsoft shall have [*] after Limelight has issued the ECN Node Readiness Certificate to either
(i) accept the ECN Node Readiness Certificate (a “[*] ECN Node Acceptance”) or (ii) dispute
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specifying in writing and with
reasonable detail how the [*] ECN Node fails to meet the Readiness Criteria (a “[*] ECN Node
Rejection”). If Microsoft does not submit a [*] ECN Node Acceptance or [*] ECN Node
Rejection to Limelight within the notice period set forth in the preceding sentence, then it
shall be deemed that the [*] ECN Node has been accepted. If Microsoft issues a [*] ECN Node
Rejection, then Limelight shall have up to [*] to provide conclusive
evidence that such [*] ECN Node actually meets the Readiness Criteria. After providing such
conclusive evidence, Limelight shall issue the ECN Readiness Certificate for such [*] ECN
Node and the [*] ECN Node Acceptance shall be deemed issued for such [*] ECN Node. If
Limelight repeatedly fails to deliver any [*] ECN Node with an ECN Node Readiness
Certificate accepted by Microsoft within the mutually agreed dates set in accordance with
this Agreement, then, unless such failure is caused by Microsoft’s failure to meet its
obligations in Section 2(b)(4), Microsoft may, at its option: (i) accept and retain the [*]
ECN Node with all rights and obligations as set forth in this Agreement for such [*] ECN
Node; (ii) extend the period for acceptance; or (iii) except for cases where the failure to
deliver any [*] ECN Node with an ECN Node Readiness Certificate accepted by Microsoft within
the mutually agreed dates set in accordance with this Agreement is caused by Force Majeure,
terminate this Agreement for cause pursuant to Section 17, provided, however, that, if
Microsoft elects to terminate this Agreement under the circumstances provided for in this
section, Microsoft need not provide Limelight the cure period specified in Section 17 and
Microsoft will only be responsible for those charges that have accrued as of the termination
date. For purposes of clarity, Microsoft’s selection of an option (as set forth in the
immediate preceding sentence) for one [*] ECN Node, shall not dictate the option, if any,
Microsoft may chose for any other applicable [*] ECN Node.

  

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     3. After Issuing the ECN Node Readiness Certificate. Within a reasonable period of
time after issuing the ECN Node Readiness Certificate, Limelight shall (i) to the extent
practicable, manage the routing of user content requests for Microsoft-delivered content to
the applicable (based on standard criteria, such as logical Internet location and [*] ECN
Node availability) [*] ECN Node, (ii) to the extent practicable, manage the satisfaction of
user content requests for Microsoft-delivered content from the applicable (based on standard
criteria, such as logical Internet location and [*] ECN Node availability) [*] ECN Node;
(iii) manage such [*] ECN Node, (iv) monitor the [*] ECN Node for the parameters set forth
in Exhibit F, and, (v) deliver all such monitoring results to Microsoft. Limelight
will utilize a process for integrating new [*] ECN Nodes into the integrated delivery
infrastructure that is similar to Limelight’s own process for integrating its own new CDN
logical locations into its infrastructure. This process may include beginning with a
minority of deliverable content and gradually increasing the content delivered through the
node/location over a period of time, until reaching full utilization of the node/location.
At any time that Limelight determines that a [*] ECN Node is not ready for production
utilization or is operating in a substandard fashion, or at any time that Microsoft
reasonably believes that a [*] ECN Node is not ready for production utilization or is
operating in a substandard fashion and so notifies Limelight, Limelight may reduce its
utilization of, or cease utilizing completely, that [*] ECN Node until Limelight is able to
restore the [*] ECN Node to full readiness. For clarity, all communications facilities
charges related to [*] ECN Nodes, including collocation charges, Internet connection
charges, variable charges based on traffic and network utilization, network facilities
connecting the [*] ECN Node to the Limelight network, and all other charges, shall be (if
[*] ECN Node Space is obtained through co-location in Limelight content delivery network
facilities) as set forth in the applicable ECN Node Co-Location Agreement or paid as set
forth in Section 2(e), and if Microsoft obtains [*] ECN Node Space independently of
Limelight, then Microsoft shall be independently responsible for these charges.

     4. Microsoft Responsibility in ECN Node Readiness. Microsoft acknowledges it has
certain responsibilities set forth in Exhibit A-2 that are important in helping
ensure each [*] ECN Node is capable of receiving an ECN Node Readiness Certificate (the
“Microsoft Responsibilities”). Microsoft and Limelight shall communicate with reasonable
frequency about the scope and definition of the Microsoft Responsibilities and Microsoft’s
progress in discharging the Microsoft Responsibilities for each [*] ECN Node. Microsoft and
Limelight shall amend in writing the definition of the Microsoft Responsibilities as is
reasonably necessary (i) within [*] of the
Effective Date, and/or (ii) within [*] of the issuance of a [*] ECN Node Acceptance for the First [*] ECN Node.
Microsoft shall use commercially reasonable efforts to discharge the Microsoft
Responsibilities. In the event that [*] prior to a scheduled [*] ECN Node
delivery date Microsoft has not discharged the Microsoft Responsibilities for such [*] ECN
Node after the exercise of commercially reasonable efforts, then Microsoft and Limelight
shall discuss strategies and alternatives to the given [*] ECN Node, including, but not
limited to, deploying such [*] ECN Node in another location.

  

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     (c) [*] ECN Node Support Services. Limelight shall provide Microsoft services (“Support
Services”) to support and maintain [*] ECN Nodes, and the Services defined in the Limelight Content
Delivery Service Agreement, all consistent with the specifications, timelines, service levels, and
other requirements contained in Exhibit B-1 to this Agreement (“Microsoft Edge Computing
Network Support Services”). Limelight will provide to Microsoft (i) Tier 1, Tier 2, and Tier 3
Support Services (as set forth in Exhibit B-1) for the period commencing on the Effective
Date plus two months and ending [*] later, and (ii) Tier 3 Support Services for the period
commencing [*] after the Effective Date plus two months and ending [*] later.

     (d) New Features for Limelight Software. Except as expressly set forth in Section 3(e),
Limelight has no obligation to modify Limelight Software, including, but not limited to, providing
new functionality, revised functionality, and earlier implementation of planned functionality.

     (e) Committed Amount of Services; Catch Up Payment; Maximum Service Hours. Microsoft shall
have the right to use Professional Services, of the type and up to the maximum number of hours for
each type of Professional Services as specified in Exhibit B-2, from the Effective Date
through July 31, 2010 (the “Professional Services Fee End Date”) for the purpose of fully deploying
twenty-four (24) [*] ECN Nodes resulting in total Professional Services Fees of $[*] (except as set
forth below). Limelight shall report to Microsoft (i) monthly on the hours for each type of
Professional Service used for such month, and (ii) quarterly on the total hours used as compare to
the allocation, projection and maximum number of hours for each type of Professional Services as
set forth in Exhibit B-2. At Microsoft’s election, Limelight will meet and discuss the
number of hours of Professional Services used with the objective of helping ensure that all [*] ECN
Nodes will be deployed without the need for any Additional Professional Services Payment, and the
Parties will use good faith efforts to adjust staffing for Professional Services to meet that goal
and the objectives of this Agreement. In the event that as of the Professional Service Fee End
Date this Agreement has not been terminated and Limelight is not in material breach of this
Agreement, then such Professional Services will be deemed fully utilized by Microsoft and all
Professional Services Fees will be deemed fully earned by Limelight as of the Professional Service
Fee End Date, whether or not all [*] ECN Nodes have been deployed, and Microsoft shall pay
Limelight an amount equal to $[*] minus the total amount of Professional Fees accruing as of the
Professional Service Fee End Date (the “Catch Up Payment”). In the event that Microsoft utilizes
Professional Services such that the type and total hours at the corresponding hourly rate of
Professional Services (as set forth in Exhibit B-2) totals $[*] or more, then Microsoft
shall pay for any additional Professional Services in excess of $[*] at the applicable hourly rates
set forth in Exhibit B-2 (the “Additional Professional Services Payment”). Microsoft will
pay the Catch Up Payment and any Additional Professional Services Payment under the terms of
Section 5(c)-(e), subject to Limelight’s submission of an invoice, as set forth in Section 5(d).

     (f) Additional Items. Modifications to any exhibits may be added to this Agreement from time
to time with the mutual written agreement of Limelight and Microsoft and, when so added, such
modifications will become part of the applicable exhibit to which it pertains. Except for Fees and
Advance set forth in Section 5 (but including all other obligations in Section 5), Limelight shall
be responsible at its own cost for any and all equipment and/or software
necessary to adequately perform its obligations under this Agreement. Upon Microsoft’s
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related to Limelight’s compliance with the performance standards in this Agreement (including,
without limitation, the Microsoft Edge Computing Support Services, as set forth in Exhibit
B-1). Limelight agrees that it will not use any Microsoft facilities and/or any
Microsoft-provided equipment (including any equipment owned, leased or rented by Limelight for
performing its obligations under this Agreement) to perform services for any person or entity other
than Microsoft, without the prior written consent of Microsoft. In the event Microsoft provides
Limelight with Microsoft equipment for Limelight’s use in the performance of its obligations under
this Agreement, Limelight assumes the risk of loss, damage, theft or disappearance for all such
Microsoft equipment while in Limelight’s care, custody or control. In addition, Limelight shall
take no actions which affect Microsoft’s title or interest in such Microsoft equipment.

     (g) Project Reviews; Personnel. Microsoft and Limelight will meet reasonably frequently, but
at least weekly (decreasing to monthly after [*] of this Agreement), to review the
project objectives, scope and schedule; update or modify the schedule as needed; and to review the
status of performance for meeting the schedule and other requirements set forth in this Agreement.
For purposes of clarity, nothing in this section shall be construed as permitting an informal
process for amending this Agreement. Amendments to this Agreement may be made only as set forth in
Section 21(g). The Parties will create and send a single project report containing risks and
issues to identified team members at Microsoft and Limelight. Reasonably soon after the Effective
Date, but not later than [*], Limelight shall designate a project program manager
who shall be responsible for coordinating this meeting and creating the report referenced in this
section. Limelight may modify the designation of the project program manager from time to time.
Limelight agrees that it will consider Microsoft feedback regarding any Limelight employee or
Subcontractor.

     (h) Financial Information. In the event that Limelight learns that it has become or will
become insolvent, then, within [*] after Limelight so learns, Limelight shall submit
financial statements to Microsoft in sufficient detail to allow Microsoft to determine whether
Limelight shall be capable of continuing to perform its obligations hereunder, if and to the extent
such detailed financial statements are available to Limelight.

     (i) Non-Exclusivity; No Other Minimums. The Parties hereto agree that nothing contained in
this Agreement shall be construed as (i) creating an exclusive relationship between the Parties or
(ii) except as expressly set forth in Section 6(c), requiring Microsoft to obtain any minimum level
of services from Limelight.

     (j) Additional Terms and Conditions for Professional Services. All obligations of Limelight
under this Agreement to provide services of any kind, whether consulting, advising, recommending,
assisting, developing software or requirements, or any other activity of any kind that requires the
work of individuals (except sales activities), will be performed by Limelight by providing
Professional Services. Such Professional Services are limited to the type and the maximum number
of hours for each type of Professional Services as set forth in Exhibit B-2, and are
billable to Microsoft as set forth in Section 2(e) and Section 5(a)(1).

 

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3. LICENSES OF SOFTWARE AND INTELLECTUAL PROPERTY.

     (a) Limelight Software Definition. “Limelight Software” means software that as of the
Effective Date is used or required to plan, build, test, deploy, provide, maintain, support,
validate, secure, operate or bill any and all of Limelight’s [*] client-installed [*] manager, and
dynamic computational services, and including, but not limited to, Limelight’s [*]. Limelight
software shall not include the Excluded Software, defined below. “Excluded Software” means (i) any
software that Limelight does not have the [*]; (ii) software that is used to deploy, provide,
maintain, support, validate, secure, operate or bill Limelight’s content delivery services for
Adobe Flash Streaming, Real Networks Real Media on-demand and Streaming; Apple QuickTime or other
Apple format on-demand and Streaming; Shoutcast, Icecast, and other MP3 audio on-demand and
Streaming formats; and NNTP; (iii) software branded by Limelight as [*]”; and (iv) Limelight’s [*].
With respect to the [*], to the extent that Limelight can readily separate some or all of the
software functionality that executes URL redirections for the purpose of dividing services between
service delivery infrastructures, then the programs and related documentation (if any) that are
readily separable will be included as part of the Limelight Software. In the event that Limelight
cannot readily separate some or all of the software functionality that executes URL redirections
for the purpose of dividing services between service delivery infrastructures, then Limelight will
inform Microsoft how to build software functionality reasonably equivalent to the software
functionality that was not readily separable, as set forth in the preceding sentence. A partial
list of file names comprising Limelight Software is listed on Exhibit C-1 and a partial
list of specifications for Limelight Software is forth in Exhibit C-3. Limelight Software
also includes (i), the know-how and trade secrets expressly set forth in Exhibit C-2 (the
“Know-How and Trade Secrets”) and (ii) Updates.

     (b) Limelight Software License. Limelight, under all of its Intellectual Property Rights,
hereby grants to Microsoft:

     1. a non-exclusive, fully paid up, unlimited (except as set forth in Section 3(c)),
worldwide, [*] and irrevocable right and license to install, copy, use, modify and
create derivative works of the Limelight Software in [*];

     2. a non-exclusive, fully paid up, unlimited (except as set forth in Section 3(c)),
worldwide, [*] and irrevocable right and license to install, copy, use, modify and
create derivative works of the Limelight Software in [*];

     3. a non-exclusive, fully paid up, unlimited (except as set forth in Section 3(c)),
worldwide, [*] and irrevocable right and license to use the Know-How and Trade
Secrets, and

     4. the right to sublicense the rights set forth in this section, in whole or in part,
to Microsoft Affiliates and contractors (but only for such contractors’ use in performing
their obligations under their agreements with Microsoft or Microsoft Affiliates, as
applicable), or as otherwise necessary to achieve the objectives set forth in this
Agreement.

     (c) Limelight Software License Exception. The license granted by Limelight in Section 3(b)
does not include the right to use Limelight Software [*]. Limelight acknowledges and agrees that
as of the Effective Date, none of the services publicly available and offered under
[*]. The Limelight Software License is subject to the limitations expressly set forth in
Section

  

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5(a)(3) (Payment of Software License Fee) and Section 17 (d) (Termination/Survival of
Limelight Software License).

     (d) Limelight Software Delivery & Acceptance. Promptly after the execution of this Agreement,
but not later than [*], Limelight shall deliver the Limelight Software to Microsoft in
[*] only (along with an offer to provide a complete machine-readable copy of the
corresponding [*] solely for the open source software modules listed in Exhibit
C-1), along with a list of all software required to make the Limelight Software fully
operational that Limelight does not deliver. The date on which Limelight initially delivers the
Limelight Software and list of other software to Microsoft will be the “Limelight Software Delivery
Date.” Promptly after the Limelight Software Delivery Date, Microsoft shall commence deploying the
Limelight Software in an internal, production test environment for the purpose of having the
Limelight Software fully operational in such production test environment (the “Successful Test
Deployment”). After (i) the Successful Test Deployment, and (ii) Microsoft’s issuance of the ECN
Node Acceptance for the First [*] ECN Node (satisfaction of both being the “Limelight Software
Acceptance”), the Limelight Software License Fee shall be due as set forth in Section 5(a)(3), and
Limelight will deliver the Limelight Software to Microsoft in [*] and [*].
Microsoft may notify Limelight at any time of any potential defect it identifies in the Limelight
Software (each such potential defect being a “Software Error”) by notifying Limelight in writing or
by opening a ticket on Limelight’s electronic incident reporting system, providing as much detail
as is reasonably possible. Limelight shall respond to Software Error notifications within a
reasonable period of time. Software Errors that are not actual software defects, but that reflect
the correct operation of the Limelight Software, will not be corrected. Any Software Error
reported during the Term that is identified by Limelight as constituting an actual software defect
will be corrected by Limelight within a reasonable period of time. If Limelight repeatedly fails
to correct Software Errors that preclude either the Successful Test Deployment or the Limelight
Software Acceptance, then Microsoft may, at its option: (i) accept and retain the Limelight
Software with all rights and obligations as set forth in this Agreement for such Limelight Software
by issuing the Limelight Software Acceptance; or (ii) terminate this Agreement for cause pursuant
to Section 17, provided, however, that, if Microsoft elects to terminate this Agreement under the
circumstances provided for in this section, Microsoft need not provide Limelight the cure period
specified in Section 17 and Microsoft will only be responsible for those charges that have accrued
as of the termination date. For purposes of clarity, Microsoft’s selection of an option (as set
forth in the immediate preceding sentence) for Successful Test Deployment, shall not dictate the
option, if any, Microsoft may chose for Limelight Software Acceptance.

     (e) Limelight Software Updates & Documentation. Commencing after the Effective Date,
Limelight shall provide Microsoft (i) [*], and (ii) all error corrections, bug fixes, enhancements,
revisions or modifications to the Limelight Software, all in [*] and [*], that Limelight makes to the Limelight Software through the Term, and (iii) all error
corrections intended to mitigate software defects that directly and adversely affect the core
service operation, that Limelight makes in its own deployed instance(s) of the Limelight Software,
to the extent that such error corrections are separately identifiable as applicable solely to the
Limelight Software, all in [*] and [*], occurring during the
Term (subpart (ii) and (iii) are each a “Fix,” and collectively with the Limelight Software
[*], the “Updates”). For purposes of clarity, nothing in this Agreement shall be construed as
requiring

  

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Limelight to release Limelight Software [*]. Limelight shall have no obligation to
create any error correction or update to any of the Limelight Software after the Term, whether or
not Microsoft identifies a software error after that date. Microsoft understands and acknowledges
that Limelight may in the future replace some or all modules of the Limelight Software within
Limelight’s own operations, and that once Limelight has replaced a module of the Limelight Software
with a replacement module, that Limelight will make no further error corrections to, or updates to,
the replaced module. Also, in the event that Limelight deploys Limelight Software [*], then
Limelight will cease supporting the first version of the Limelight Software a reasonable time after
the later of the date that: (i) Limelight delivers Microsoft Limelight Software [*]; and (ii)
Limelight fully deploys Limelight Software [*] throughout its own production environment. In no
event shall Limelight be required under this Agreement to develop Limelight Software error
correction due to a problem that is not attributable to Limelight. Limelight shall provide
Microsoft with reasonable access to intermediate check-ins, final-form [*], designs,
diagrams, specifications, requirements, test plans, prototypes and development history for the
Limelight Software for which Limelight has the right to disclose [*], and will identify all
other software used in or relied upon in the Limelight Software which is currently deployed and
operated within the Limelight contend delivery network.

     (f) Microsoft Modification of Limelight Software. In the event that Microsoft modifies the
Limelight Software, then Microsoft, in its sole discretion, may elect
to deliver source and [*] for such modifications to Limelight under the license set forth in this section. For purposes
of clarity, nothing in this section shall be construed as requiring Microsoft to deliver or license
to Limelight any software, including modifications of the Limelight Software. Subject to the
provisions of this Agreement, in the event that Microsoft delivers its modifications of the
Limelight Software to Limelight, in either source or [*], then with respect to such
delivered software (the “Microsoft Modifications”), Microsoft hereby grants Limelight a perpetual,
non-exclusive, non-assignable, nontransferable, worldwide, personal, limited license to use the
Microsoft Modifications solely for Limelight’s content delivery network service. In the event that
Microsoft licenses Microsoft Modifications to Limelight under this section and Limelight chooses to
use such Microsoft Modifications, then, subject to appropriate Limelight business and strategic
evaluation, functional evaluation, review, testing and other quality assurance activities,
Limelight will use commercially reasonable efforts to evaluate the Microsoft Modifications for
deployment in, or in conjunction with, Limelight’s deployment of Limelight Software, provided that,
such deployment of Microsoft Modifications does not interfere with, conflict with, negatively
affect, or otherwise harm Limelight’s business, operations, financial performance, or industry
reputation; and if necessary and if Limelight has elected to deploy the Microsoft Modifications,
Limelight will use commercially reasonable efforts to enable Microsoft, at Microsoft’s expense, to
deploy additional systems within Limelight’s service delivery infrastructure which can communicate
directly with Microsoft Modifications, provided that such systems do not interfere with, conflict
with, or otherwise harm Limelight’s business.

     (g) Microsoft Caused Software Errors. In the event that Microsoft reports to Limelight or
Limelight otherwise identifies a Software Error (for example, due to degraded
performance) and such Software Error is found to have been contained within or caused by
Microsoft’s modification of the Limelight Software, then any Tier 3 engineering resources used to
identify and resolve or otherwise correct such Software Error shall be chargeable as

  

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Professional
Services as set forth in this Agreement. For purposes of clarity, any Tier 3 engineering resources
used to identify and resolve or otherwise correct any other Software Errors, including those caused
by Microsoft Modifications that Limelight introduces into the Limelight Software code base will not
be chargeable as Professional Services.

4. OTHER SOFTWARE

     (a) Enhanced [*] Manager. Limelight and Microsoft may elect to [*] based on Limelight’s [*].
If the Parties so elect, then the Parties shall establish a written program and agreement,
manually signed by each Party, for [*] a specification for the Enhanced [*] Manager, a schedule for
[*] Enhanced [*] Manager, a list of persons assigned to perform program management, software
development and testing, and including such other details as are reasonably necessary for [*]. All
Intellectual Property Rights that are created, developed, written, conceived or first reduced to
practice as a result of [*] Enhanced [*] Manager [*] shall be allocated as expressly set forth in
the written agreement for such Enhanced [*] Manager [*].

     (b) Other Microsoft Software. If Microsoft provides software, related materials or other
items (such as documentation, photographs, music, graphics, multimedia, prototypes, or demos) for
Limelight’s use to perform Services, other than Microsoft Modifications (which is governed by
Section 3(f)) or the Enhanced [*] Manager (which is governed by Section 4(a)), then Limelight’s use
of the software or item shall be governed by the license which is contained in it or accompanies
such software or item when delivered to Limelight. If no such license exists, then Microsoft
grants Limelight a nonexclusive, nontransferable, non-assignable, limited license to use the
software or item, as appropriate, solely for the purpose of creating and performing Services. Such
license rights do not include any license, right, power or authority to subject the Microsoft
software or item, in whole or in part, to any terms of an Excluded License. Microsoft or its
suppliers retain all right, title, and interest in and to the software or item. “Excluded License”
means any license requiring, as a condition of use, modification and/or distribution of the
software subject to the license, that such software or other software combined and/or distributed
with it be (a) disclosed or distributed in [*] (b) licensed for the purpose of making
derivative works; or (c) redistributable at no charge.

     (c) Microsoft Products. In the event that Limelight makes proposals for enhancements to,
and/or additional functionality for, Microsoft software products which are designed to improve the
delivery performance, data accuracy, cost efficiency, and/or revenue productivity/yield of the
Limelight content delivery network or the Microsoft edge computing network, then Microsoft shall
use good faith efforts to receive and, as appropriate, consider such proposals.

5. LIMELIGHT FEES.

     (a) Fees and Rates. Microsoft shall pay Limelight the fees set forth in Section 5(a)(1-3)
(collectively, the “Fees”) in accordance with the terms of this Agreement, including, but not
limited to, Sections 5(c)-(e):

     1. Professional Service Fees. For each [*] ECN Node that Microsoft issues a [*] ECN
Node Acceptance, Microsoft shall pay Limelight a one-time fee for Professional Services
(“Professional Services Fees”) in the amount of:

  

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	 	i.	 	[*] UNITED STATES DOLLARS (US$[*] for [*]
ECN Nodes [*];
	 
	 	ii.	 	[*] UNITED STATES DOLLARS (US$[*] for [*]
ECN Node number [*];
	 
	 	iii.	 	[*] UNITED STATES DOLLARS (US$[*] for [*]
ECN Nodes number [*];
	 
	 	iv.	 	[*] UNITED STATES DOLLARS (US$[*] for [*]
ECN Nodes number [*];
	 
	 	v.	 	[*] UNITED STATES DOLLARS (US$[*] for [*]
ECN Nodes number [*];

If Microsoft issues ECN Node Acceptances for less than [*] ECN Nodes, then the provisions of
Section 2(e) shall apply. The Professional Services Fees for [*] ECN Nodes number [*] and
above shall be that amount mutually agreed to by Limelight and Microsoft in writing prior to
commencing any Professional Services for such [*] ECN Nodes. Limelight will separately
invoice Microsoft for the reasonable and actual expenses it incurs in providing the
Professional Services under this agreement, including, but not limited to, travel, lodging
and meals, and, provided that Limelight complies with the MVG for such expenses, such
invoices will be paid as set forth in Section 5(c)-(e).

     2. Support Services Fees. For each [*] ECN Node that Microsoft issues a [*] ECN Node
Acceptance, Microsoft shall pay Limelight a one-time fee for Support Services rendered
during the Term (“Support Services Fees”) in the amount of [*] DOLLARS (US$[*] for each [*]
ECN Node number [*]. The Support Services Fees for [*] ECN Nodes number [*] and above shall
be that amount mutually agreed to by Limelight and Microsoft in writing prior to commencing
any Support Services for such [*] ECN Nodes. By way of example, if, during the Term,
Microsoft issues [*] ECN Node Acceptances for [*] ECN Nodes, then Limelight would have
earned Support Service Fees totaling $[*]; and, on the other hand, if, during the Term,
Microsoft issues [*] ECN Node Acceptances for [*] ECN Nodes, then Limelight would have
earned Support Service Fees totaling $[*]. For purposes of clarity, Limelight is
responsible for any expenses it incurs in providing the Support Services under this
agreement, including, but not limited to, travel, lodging and meals.

     3. Software License Fee. After Microsoft issues the Limelight Software Acceptance,
Microsoft shall pay Limelight a one-time fee to license the Limelight Software (the
“Limelight Software License Fee”) in the amount of [*] UNITED STATES DOLLARS (US$[*] payable
in two installments as follows:

	 	i.	 	[*] UNITED STATES DOLLARS (US$[*] shall
accrue on [*] of the [*] ECN Node Acceptance for the First [*] ECN
Node; and
	 
	 	ii.	 	[*] UNITED STATES DOLLARS (US$[*] shall
accrue on the date that is [*] after the date of issuance of the [*]
ECN Node Acceptance for the First [*] ECN Node.

For purposes of clarity, the Limelight Software License Fee is the entire payment Microsoft
will owe Limelight for Limelight Software license fees, including, Limelight Software [*],
if any, or any other Update, regardless of how many Updates Limelight

  

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delivers and/or
Microsoft accepts. For purposes of clarity, in the event this Agreement terminates or
expires prior to Microsoft’s issuance of the Limelight Software Acceptance, then Microsoft
will have no obligation to pay the Limelight Software License Fee and the Limelight Software
License shall expire as of the date of termination or expiration, as applicable, of this
Agreement.

     (b) Advance Against Service Fee. As of the Effective Date, Microsoft shall pay Limelight a
refundable advance of [*] UNITED STATES DOLLARS (US$[*] (the “Advance”). Limelight shall invoice
Microsoft for the Advance, and such invoice will be paid as set forth in Section 5(c)-(e).
Microsoft may offset the Advance against the Professional Service Fees by offsetting $[*] against
each of the two payments of $[*] due upon Microsoft’s acceptance of [*] ECN Nodes numbers [*]. In
the event that by the earlier of [*] and the termination date of this Agreement,
Limelight Professional Service Fees billings have not been sufficient to offset the entire amount
of the Advance, then Limelight shall promptly (but not later than [*]) pay Microsoft
the amount of the non-offset portion of the Advance upon written notice by Microsoft.

     (c) Payment Terms. Limelight shall invoice Microsoft for Professional Services Fees, Support
Services Fees and Limelight Software License Fee as each accrues under this Agreement. Limelight
shall invoice Microsoft for all other Fees incurred for Services during a month on or after the [*] of the month following the month in which the Services were provided. Upon receipt of a
correct and undisputed invoice, Microsoft shall pay the invoice net [*] from the date
of the invoice. Payments shall be made according to Microsoft’s then-current payment policies,
which include payment via ACH electronic payment to Limelight’s financial institution under
instructions supplied by Limelight in Microsoft’s ACH Electronic Payment form.

     (d) MS Invoice. Limelight shall invoice Microsoft for all amounts via the MS Invoice online
tool in accordance with the then-current requirements at http://invoice.microsoft.com. All invoices
shall be submitted with line-item detail identifying all aspects of the Service provided to
Microsoft. Invoices shall not bear an invoice date earlier than the date on which Limelight shall
be entitled to be paid under this Agreement, or if not specified, invoices may be issued monthly in
arrears.

     (e) Disputed Amounts. Microsoft may dispute any invoice by providing written notice to
Limelight within [*] of receiving the invoice (each a “Disputed Amount”). All Disputed
Amounts that Microsoft agrees in writing to pay, or that are required to be paid pursuant to a
final court order or arbitration award (along with any other amounts legally required, e.g., by
statute or under this Agreement), shall be paid on the payment terms in Section 5(c)-(d). Payment
of an invoice without asserting a dispute is not a waiver of any claim or right.
Failure to dispute an invoiced amount within the [*] period shall not be deemed a waiver of
any claim unknown to Microsoft at the time.

6. LIMELIGHT CONTENT DELIVERY SERVICE AGREEMENT AMENDMENTS. The Parties amend the Limelight
Content Delivery Service Agreement, as more fully set forth in this section.

  

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     (a) Service Fee. All pricing is as set forth in the Limelight Content Delivery Service
Agreement.

     (b) Contract Pricing Adjustment. Limelight and Microsoft agree that they will meet to
discuss adjusting the prices recited in the Limelight Content Delivery Service Agreement [*] (and
such other additional times as the Parties agree) to reflect any change in market prices for CDN
services of the amount and type contained herein. The Parties acknowledge that any changes in
pricing will have an inverse effect on the balance of the Traffic Commitment; that is, an increase
in pricing will result in a decrease in the balance of the Traffic Commitment, and a decrease in
pricing will result in an increase in the balance of the Traffic Commitment. Such adjustment to
pricing and the balance of the Traffic Commitment shall be made via a written amendment to the
Limelight Content Delivery Service Agreement (for adjustments to pricing) and this agreement (for
adjustments to the Traffic Commitment) and shall be effective as of [*], unless such written
amendment is agreed [*] of that year, in which case such change shall be effective as of the first
day of the calendar quarter in which such written amendment is actually reached. If Limelight and
Microsoft are not able to agree as to the terms of an amendment to adjust the prices recited in the
Limelight Content Delivery Service Agreement and the balance of the Traffic Commitment, then the
prices contained in the Limelight Content Delivery Service Agreement and the balance of the Traffic
Commitment will remain in effect until such time as the Parties are able to reach an agreement. If
Limelight and Microsoft agree that no change in the prices recited in the Limelight Content
Delivery Service Agreement is warranted, then no amendment to this agreement need be executed.

     (c) Traffic Commitment. During the time period commencing on [*] and ending [*] from the
Effective Date, and subject to terms, conditions and limitations set forth in this Agreement,
Microsoft shall meet the Traffic Commitment, defined below.

     1. Definition. “Traffic Commitment” means total usage of CDN Services, where
Services are as defined in and used under the Limelight Content Delivery Service Agreement
for all Microsoft properties and/or online services in all markets worldwide representing
the sum of the billable traffic rate calculated for each month (except for Excluded Service
Traffic, defined below) and equal to [*] Mbps-months over the time period starting [*] (the
“Traffic Commitment Start Date”), and ending [*] from the Effective Date (the “Traffic
Commitment End Date”), subject to any adjustments as set forth in this Agreement. “Excluded
Service Traffic” means (i) the traffic in Mbps for [*] for any Service, as defined under the
Limelight Content Delivery Service Agreement (the “[*] Traffic”) plus the traffic
for [*] Interactive News, LLC for any Service, as defined under the Limelight Content
Delivery Service Agreement (the “[*] Traffic”) up to a maximum of [*] Mbps, and (ii) the
traffic for any acquisition by Microsoft of an existing
Limelight customer up to a maximum of the average traffic over the last six (6) months
prior to such acquisition for those specific services such customer was using immediately
prior to such acquisition, provided that Limelight promptly notifies Microsoft in writing
that such acquisition was an existing Limelight customer. For example, if in a given month
the [*] Traffic equals [*] Mbps for small object/file caching and the [*] Traffic equals [*]
Mbps for small object/file caching, then the amount of Excluded Service Traffic equals [*]
Mbps-months of Excluded Traffic for that month. For further example, if, in a given month
the [*] Traffic equals [*] Mbps for small object/file caching and the [*] Traffic equals [*]
for small object/file caching, then the amount of Excluded Service

  

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Traffic equals the Actual
[*] Traffic of [*] the Actual [*] Traffic of [*] Mbps-months of Excluded Traffic for that
month. For clarity as to how to calculate Mbps-months for Services under this Agreement, if
Limelight bills Microsoft for [*] Mbps for Services (in all cases, excluding Excluded
Service Traffic) in [*], then that month will represent [*] Mbps-months of
performance against the Traffic Commitment; if Limelight then bills Microsoft for [*] Mbps
for Services in [*] then that month will represent [*] Mbps-months of performance against
the Traffic Commitment and [*] will represent [*] of performance against the [*]; and if
Limelight then bills Microsoft [*] Mbps for Services in [*], then that month will represent
[*] Mbps-months of performance against the Traffic Commitment and the [*] will represent [*]
Mbps-months in total performance against the Traffic Commitment.

     2. Adjustments to Traffic Commitment.

     i. Reduction. In the event that this Agreement terminates
early such that the Term is less than [*], then the Traffic Commitment shall
be reduced pro rata based on the actual time period of the Term of this
Agreement as compared to [*] (for example, if the Term is [*], then the
Traffic Commitment shall be reduced by [*], or [*]). In the event that
Limelight fails to meet the service level agreement for any Service under
the Limelight Content Delivery Service Agreement in any calendar month for a
particular Microsoft property, then the Traffic Commitment shall be reduced
by an amount equal to (i) the traffic for such Microsoft property in the
month immediately preceding the calendar month Limelight failed to meet such
service level agreement, multiplied by (ii) three (3).

     ii. GB Pricing Conversion. For purposes of satisfying the
Traffic Commitment (which, of course, is measured in Mbps), the amount of
Mbps that applies to the Traffic Commitment for all traffic which Microsoft
pays under a per Gigabyte (GB) billing model, but not including storage
services paid for under a per Gigabyte (GB) billing model, shall be
determined using the following formula: [*] for traffic under the [*]
divided by the corresponding then current standard [*]” is the volume of
traffic to be applied to the [*] for that month. Storage services paid for
under a per Gigabyte (GB) billing model do not count towards the Traffic
Commitment.

     3. Reporting. Each month after the Traffic Commitment Start Date, by the
[*] of the month, Limelight shall report (the “Traffic Commitment
Report”) to Microsoft (i) the amount of Traffic Commitment Microsoft attained for the month,
(ii) the total amount of the Traffic Commitment Microsoft has attained, and (iii) the amount
of the Traffic Commitment remaining. If Microsoft disputes any aspect of the Traffic
Commitment Report, then Microsoft shall notify Limelight of such dispute, and the Parties
shall in good faith work to mutually agree on the correct figures for the Traffic Commitment
Report.

     4. Failure to Attain. If, by the Traffic Commitment End Date, Microsoft has
not met the Traffic Commitment, then, subject to all terms, conditions and limitations in

  

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this Agreement, Microsoft shall pay Limelight an amount equal to (i) that amount of the
Traffic Commitment not attained as measured in Mbps multiplied by (ii) the weighted average
price per Mbps (that is, total invoiced amount in US dollars, or if in another currency,
converted into US dollars, divided by the total traffic in Mbps) using the actual traffic
volume and invoiced amounts for traffic applicable to the Traffic Commitment [*] to the
Traffic Commitment End Date (the “Traffic Commitment Payment”). Microsoft will pay the
Traffic Commitment Payment under the terms of Section 5(c)-(e), subject to Limelight’s
submission of an invoice, as set forth in Section 5(d).

     5. Technical Support Director. To assist Microsoft with meeting its
obligations under this section, Limelight shall provide a Senior Technical Support Director,
or (at Limelight’s discretion) a more senior person (the “Limelight Technical Support
Director”), within [*] of the Effective Date, to assist Microsoft, at
Microsoft’s discretion, with facilitating the on-boarding of Services, as defined under the
Limelight Content Delivery Service Agreement, to Microsoft properties and assist Microsoft
with interacting with Limelight. Each month the Limelight Technical Support Director shall
send a report to Microsoft and the Limelight Senior Vice President of Business Development
(or such other person(s) as Limelight shall deem appropriate) outlining in reasonable detail
the significant aspects of the Parties’ relationship, including, but not limited to, new
properties added, properties removed, traffic usage and patterns, SLA concerns, and root
case analysis for any problems that arose from the previous month’s service. At Microsoft’s
discretion, the Limelight Technical Support Director may reside in an office on the
Microsoft campus facility (but, for purposes of clarity, Microsoft is under no obligation to
provide the Limelight Technical Support Director an office or other facilities), and if so,
then Limelight and the Limelight Technical Support Director shall comply with all
obligations related to using such Microsoft office or other facilities, as set forth in this
Agreement, the MVG or any other Microsoft policy made available to Limelight.

     6. Payment for Services under the Limelight Content Delivery Service Agreement.
All payment for Services (as defined under the Limelight Content Delivery Service
Agreement) shall be as set forth in the Limelight Content Delivery Service Agreement.

7. PATENT LICENSE

     (a) By Microsoft.

     1. Microsoft hereby grants to Limelight a personal, nonexclusive, nontransferable,
nonsublicensable license under the Licensed Patents in the jurisdictions in which any of the
Licensed Patents has issued to make and use the inventions claimed in the Licensed Patents,
as limited by the exclusion set forth in Section 7(a)(2) below. “Licensed Patents” means
the following patents: [*]. All rights not expressly granted in this section are reserved.
No additional rights whatsoever (including, without limitation, any implied licenses) are
granted by implication, estoppel or otherwise. Without limiting the generality of the
foregoing, the license in this section does not include, and Microsoft does not grant, any
right under any patent or intellectual property other than the Licensed Patents. Further,
Microsoft reserves any and all rights to, and shall not have any

  

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obligation to, apply for,
register, prosecute, perfect, maintain, enforce or take any other action with respect to any
Microsoft intellectual property rights, including, but not limited to, the Licensed Patents.
Microsoft may terminate the patent license in this section by giving Limelight written
notice of termination in the event that: (a) the Agreement is terminated due to Limelight’s
breach as set forth in Section 17(b) or 17(c); (b) Limelight or any of its affiliates
commences, directs or controls any legal action seeking to render any of the Licensed
Patents or any claim under any of the Licensed Patents invalid or unenforceable; (c)
Limelight or any of its affiliates brings any proceeding of any kind against Microsoft or
any of its affiliates for infringement of any patent relating to any functionality described
in the Licensed Patents on account of any making, use, sale, offering, importing,
disposition or promotion of any Microsoft product, technology or service; or (d) this
Agreement expires and after such expiration there is a Limelight Change of Control involving
a competitor of Microsoft, or Limelight sells a material portion of its assets relating to
the subject matter of this Agreement to a competitor of Microsoft.

     2. Patent License Exclusion. The patent license granted by Microsoft in Section
7(a)(1) does not include the right to make or use the inventions claimed in the License Patents for
the sale, license or other distribution of [*] including, but not limited to, [*] excluding [*]
such as [*].

     (b) By Limelight.

     1. Limelight hereby grants to Microsoft a personal, nonexclusive, nontransferable,
nonsublicensable license under the Licensed Pending Patents in the jurisdictions in which
any of the Licensed Pending Patents has issued to make and use the inventions claimed in the
Licensed Pending Patents, as limited by the exclusion set forth in Section 7(b)(2).
“Licensed Pending Patents” means the patents that issue under any of the following patent
applications, including continuations: [*]. All rights not expressly granted in this
section are reserved. No additional rights whatsoever (including, without limitation, any
implied licenses) are granted by implication, estoppel or otherwise. Without limiting the
generality of the foregoing, the license in this section does not include, and Limelight
does not grant, any right under any patent or intellectual property other than the Licensed
Pending Patents. Further, Limelight reserves any and all rights to, and shall not have any
obligation to, apply for, register, prosecute, perfect, maintain,
enforce or take any other action with respect to any Limelight intellectual property
rights, including, but not limited to, the Licensed Pending Patents. Limelight may terminate
the patent license in this section by giving Microsoft written notice of termination in the
event that: (a) the Agreement is terminated due to Microsoft’s breach as set forth in
Section 17(b); (b) Microsoft or any of its affiliates commences, directs or controls any
legal action seeking to render any of the Licensed Pending Patents or any claim under any of
the Licensed Pending Patents invalid or unenforceable; or (c) Microsoft or any of its
affiliates brings any proceeding of any kind against Limelight or any of its affiliates for
infringement of any patent relating to any functionality described in the Licensed Pending
Patents on account of any making, use, sale, offering, importing, disposition or promotion
of any Limelight product, technology or service.

  

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     2. Patent License Exclusion. The patent license granted by Limelight in Section 7(b)(1)
does not include the right to make or use the inventions claimed in the License Pending
Patents to offer for sale [*]. Limelight acknowledges and agrees that as of the Effective
Date, none of the services publicly available and offered under [*].

8. PEERING.

     (a) Exchange of Traffic. Microsoft and Limelight may exchange TCP/IP data traffic over their
respective networks, i.e., Limelight would route its traffic through the [*] ECN Node, and
Microsoft would route its traffic (except for traffic under the Limelight Content Delivery Service
Agreement) through the Limelight content delivery network. If the Parties so elect to exchange
data traffic, then the Parties will set forth in writing the interconnection points for such data
traffic exchange (the “Interconnection Points”), and each Party shall provide, at its own expense,
connections from its network to the Interconnection Point. Neither Party shall monitor, filter or
otherwise restrict the contents of the other Party’s data or traffic as it passes through the
Interconnection Points except (i) pursuant to an appropriate confidentiality agreement as necessary
for network service or network security, including without limitation to respond to spamming or
denial of service attacks, so long as a Party is in compliance with applicable law; (ii) pursuant
to the Parties’ respective Acceptable Use Policies; or (iii) in compliance with applicable law or
an applicable court order or subpoena. Either Party may monitor control traffic or TCP/IP header
and protocol information necessary solely for the operation, problem resolutions and engineering of
the Party’s network. The Parties may share this information with each other for such purposes. In
no event shall the monitoring Party disclose such information to third parties, except (i) pursuant
to an appropriate confidentiality agreement as necessary for network service or network security,
including without limitation to respond to spamming or denial of service attacks; or (ii) in
compliance with applicable law or an applicable court order or subpoena. Neither Party shall
provide to third parties any samples or statistical information derived from the data traffic that
passes through the Interconnection Points except (i) pursuant to an appropriate confidentiality
agreement as necessary for network service or network security, including without limitation to
respond to spamming or denial of service attacks; or (ii) in compliance with applicable law or an
applicable court order or subpoena, provided that either Party may collect statistical information
derived from the data traffic solely for the purposes of operation, problem resolution and
engineering of that Party’s network.

     (b) Technical and Operational Matters. If Microsoft and Limelight elect to exchange traffic
as set forth in Section 8(a), then the Parties shall work together to establish mutually acceptable
performance objectives and operational procedures to enable each Party to provide a high quality
service over its network and the Interconnection Points in a cost effective manner.

     (c) Pricing. If Microsoft and Limelight elect to exchange traffic as set forth in Section
8(a), then the Parties shall establish in writing the charge for Peer Route Utilization, defined
below (provided that, the maximum charge shall be mutually agreed to at the time the exchange of
traffic is developed and as modified by the Parties from time to time, using the Burstable Billing
calculation method set forth in the Limelight Content Delivery Service Agreement. “Peer Route
Utilization” means the amount of traffic delivered for Microsoft on the Limelight content delivery
network using Limelight’s settlement-free routes (except for traffic

 

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under the Limelight Content
Delivery Service Agreement), and similarly, the amount of traffic delivered for Limelight on the
[*] ECN Node using Microsoft’s settlement-free routes, provided that (i) the Mbps delivered by the
[*] ECN Node will be calculated by measuring the Mbps delivered at each [*] ECN Node location using
the Burstable Billing method (as set forth in the Limelight Content Delivery Service Agreement),
and then summing the measurements of each location to arrive at a [*] ECN Node total Mbps
delivered, (ii) the Mbps delivered on peer routes will be similarly measured at each Limelight
content delivery network and [*] ECN Node location, and (iii) the measurement will occur in
aggregate across all Microsoft properties. If Microsoft pays Limelight under this section, then
such payment shall be paid as set forth in Section 5(c)-(e), subject to Limelight’s submission of
an invoice, as set forth in Section 5(d). If Limelight pays Microsoft under this section, then
Microsoft shall issue Limelight an invoice for such amount and Limelight shall pay Microsoft the
invoiced amount within [*] or, at Microsoft’s discretion, Microsoft may offset any
amounts Limelight owes Microsoft under this section against any amounts Microsoft owes to
Limelight.

     (d) Peering Reports. Limelight shall provide Microsoft (i) a monthly report detailed for each
Microsoft property displaying traffic, co-lo, network usage, rack, power, and peering over the
Limelight Network, and (ii) a monthly report for Limelight traffic, co-lo, network usage, rack,
power, and peering over the [*] ECN Node network. Limelight will reconcile these two reports and
provide a document showing the Peer Route Utilization for that month provided for both the [*] ECN
Nodes and the Limelight Network.

9. SUBCONTRACTING OF WORK. Limelight shall not subcontract all or any portion of the Services to
third parties (each, a “Subcontractor”) without the express prior written consent of Microsoft,
which consent shall not be unreasonably withheld. In the event Microsoft approves the use of a
Subcontractor, Limelight agrees to do so in compliance with the MVG and the following conditions:

     (a) Limelight guarantees its Subcontractor’s fulfillment of the applicable obligations imposed
on Limelight by this Agreement.

     (b) Limelight shall indemnify Microsoft for all damages and/or costs of any kind, to the
extent set forth in Section 14 herein, incurred by Microsoft or any third party and caused by
Subcontractor’s fulfillment of the applicable obligations imposed on Limelight by this
Agreement.

     (c) Limelight agrees to make all payments to the Subcontractor for Services performed for
which Subcontractor was hired. If Limelight fails to pay a Subcontractor for Services performed
and there is no existing bona fide dispute between Limelight and the Subcontractor related to such
unpaid amount, then after Microsoft provides [*] advance written notice to Limelight,
Microsoft shall have the right, but not the obligation, to pay such Subcontractor for such
Services. Microsoft shall then have the right to offset any amounts
due and owing to Limelight with the amounts paid to such Subcontractor.  Limelight shall indemnify
Microsoft for all damages and/or costs of any kind, without limitation, incurred by Microsoft caused
by a failure of Limelight to pay a Subcontractor for Services performed. Limelight agrees that
subcontractor billing shall not include any mark up of fees charged Limelight by subcontractor.

 

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10. CONFIDENTIALITY.

     (a) Scope. The Parties acknowledge and agree that the terms of the Microsoft Corporation
Non-Disclosure Agreement dated August 10th 2004 (the “NDA”) will be deemed incorporated herein,
that their obligations of confidentiality shall be governed by the NDA, and further, that the
existence of this Agreement, the terms and conditions of this Agreement, and all such related
information are hereby specifically designated as Confidential Information under the NDA.

     (b) All aspects of the [*] ECN Nodes, the existence of the [*] ECN Nodes, and all such related
information are hereby specifically designated as Confidential Information of Microsoft under the
NDA. Microsoft and Limelight shall collaborate to ensure that sufficient controls are in place to
ensure that each Party, as it performs under this Agreement, complies with its separate
nondisclosure obligations.

     (c) The Know-How and Trade Secrets that Limelight discloses to Microsoft in the performance of
this Agreement are specifically designated as Confidential Information of Limelight under the NDA,
and Microsoft shall not use the Know-How and Trade Secrets except as set forth in Section 3.

     (d) Notwithstanding the confidential nature of this Agreement, Microsoft and Limelight agree
to publicize the general purposes of this Agreement as set forth in Section 21(i).

11. PROPRIETARY RIGHTS; TECHNOLOGY COOPERATION.

     (a) This section applies to all aspects of the [*] ECN Nodes, except for the Limelight
Software. Microsoft’s rights to the Limelight Software are set forth in Section 3. Except for the
Intellectual Property Rights subject to the license from Limelight to Microsoft in this Agreement,
as between Microsoft and Limelight, Microsoft owns all right, title and interest in each [*] ECN
Node, including all Intellectual Property Rights embodied in or associated with any [*] ECN Node.
Except as expressly stated in this Agreement, the Parties will have no rights of any kind in or to
any of each other’s Intellectual Property Rights. There are no implied licenses under this
Agreement, and any rights not expressly granted under this Agreement are reserved by the respective
Party.

     (b) Except for Know-How and Trade Secrets, neither Party is prohibited or enjoined at any time
from utilizing any skills or knowledge of a general nature created by it during the course of
providing the Services, including, without limitation, information publicly known or available or
that could reasonably be through other means than through exposure to the work of the other Party.

     (c) Nothing in this Agreement will be construed as restricting Microsoft’s ability to acquire,
license, develop, manufacture or distribute for itself, or have others acquire, license, develop,
manufacture or distribute for Microsoft, similar technology performing the same or similar
functions as the technology contemplated by this Agreement, or to market and distribute such
similar technology in addition to or, subject to the terms and conditions of this Agreement, in
lieu of the technology contemplated by this Agreement.

 
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     (d) Technology Cooperation Agreement: During the Term of this Agreement, Limelight and
Microsoft will: i) work together where possible [*] work together to improve the effectiveness of
their CDN services, including, but not limited to, performance, measurement,
and functionality; and iii) publicize the relationship established by this Agreement as set
forth in Section 21(i).

12. PRIVACY AND DATA PROTECTION.

     (a) For the purposes of this section, “Personal Information” means any information (i) that
identifies or can be used to identify, contact, or locate the person to whom such information
pertains, or (ii) from which identification or contact information of an individual person can be
derived. Personal Information includes, but is not limited to: name, address, phone number, fax
number, email address, social security number or other government-issued identifier, and credit
card information. Additionally, to the extent any other information (such as, but not necessarily
limited to, a personal profile, unique identifier, biometric information, and/or IP address) is
associated or combined with Personal Information, then such information also will be considered
Personal Information.

     (b) Any Personal Information collected or accessed by Limelight in performing the Services
shall be limited to that which is strictly necessary to perform such Service or to fulfill any
legal requirements. If the Service involves the collection of personal information directly from
individuals, such as through a webpage, Limelight shall provide a clear and conspicuous notice
regarding the uses of the personal information. Such notice shall comply with all relevant
guidelines contained in the MVG or as otherwise provided by Microsoft.

     (c) Limelight shall use Personal Information only as necessary to perform Services in
accordance with this Agreement and not for any other purpose whatsoever. Limelight shall maintain
Personal Information in strict confidence in accordance with the provisions of the NDA. Limelight
shall not share any Personal Information that is collected or possessed by Limelight with any third
parties for any reason except as necessary to carry out the Services, and only under terms and
conditions substantially similar to those contained in this section. If Limelight is served with a
court order compelling disclosure of any Personal Information or with notice of proceedings for
such an order, Limelight shall oppose the order, notify Microsoft of such order or notice, and
provide Microsoft the opportunity to intervene before Limelight files any response to the order or
notice.

     (d) Limelight shall take reasonable steps to protect Personal Information in Limelight’s
possession from unauthorized use, access, disclosure, alteration or destruction. Security measures
shall include access controls, encryption or other means, where appropriate. Limelight must
immediately notify Microsoft of any known security breach that may result in the unauthorized use,
access, disclosure, alteration or destruction of Personal Information. Limelight agrees to conduct
an audit on at least an annual basis to evaluate the security of Personal Information in
Limelight’s possession and to verify that the terms of this Agreement with respect to Personal
Information are being followed. The results of such audit shall be made available to Microsoft on
request.

     (e) Upon request from Microsoft, Limelight shall provide Microsoft with any or all Personal
Information in Limelight’s possession. Upon termination or expiration of this

 
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Agreement, Limelight
shall within [*] thereafter, at Microsoft’s sole discretion, either (i) provide Microsoft
with all documents and materials (including any and all copies) containing Personal Information,
together with all other materials and property of Microsoft, which are in its
possession or under its control, or (ii) destroy all such specified documents and materials
(including any and all copies in any and all formats) and provide Microsoft with a certificate of
destruction signed by an officer of Limelight.

13. WARRANTIES AND REPRESENTATIONS; LIABILITY LIMITATION.

     (a) By Limelight. Limelight represents and warrants to Microsoft as follows:

     1. Limelight is duly incorporated, organized and validly existing and in good standing
under the laws of the state of Delaware, has all requisite rights, powers, authority,
licenses and permits and has undertaken all actions and has fulfilled all conditions to
enter into, to perform under and to comply with its obligations under this Agreement
including, but not limited to, to grant any rights and licenses as set forth herein;

     2. Limelight’s representative whose signature is affixed to this Agreement has full
capacity and authority to bind it to the terms hereof;

     3. Limelight is not presently under, nor will it enter into in the future, any
agreement, commitment, understanding or other obligation, whether written or oral, which is
inconsistent or in conflict with this Agreement or would in any way or to any extent
prevent, limit or otherwise impair its performance of any of its obligations hereunder or in
connection herewith;

     4. Except for the litigation between Akamai Technologies, Inc. and the Massachusetts
Institute of Technology and Limelight pending in US District Court in Massachusetts, and (to
the extent applicable) the letter from Level 3 Communications, LLC to Limelight dated
February 9, 2007, there is presently no suit, action, proceeding or other claim pending or
threatened, against it, or, to the best of its knowledge, any third party, nor does any fact
exist which may be the basis of any such action, suit, proceeding or other claim, with
respect to this Agreement or which could have a material adverse effect on Limelight’s
capacity to perform under this Agreement;

     5. In the performance of this Agreement, Limelight shall comply with all applicable
laws, regulations, rules, orders and other requirements of governmental authorities having
jurisdiction over the Parties;

     6. Limelight and its Subcontractors shall at all times, while on Microsoft property or
while performing the Services, comply with all applicable, local, state, federal, and
foreign laws and the terms of the MVG;

     7. The Services shall either be originally created by Limelight or Limelight will
obtain all necessary rights to the Services to transfer ownership to Microsoft as required
under this Agreement;

 
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     8. The Services, Limelight Software, and the [*] ECN Node, including all portions
performed by any Subcontractor, will strictly comply with the terms and conditions of this
Agreement; and

     9. The Services, Limelight Software, the [*] ECN Node, and the use thereof by
Microsoft, Microsoft’s subsidiaries, affiliate companies, joint ventures, third-party
agents, and permitted sublicensees will not infringe or violate any Intellectual
Property Rights or other proprietary right of any third party;

     10. Limelight has not and will not take any actions that (i) create, or purport to
create, any obligation on behalf of Microsoft, or (ii) grant, or purport to grant, any
rights or immunities to any third party under Microsoft’s Intellectual Property Rights. By
way of example but not limitation of the foregoing, Limelight shall not incorporate any
Publicly Available Software in whole or in part into any part of the Services, Limelight
Software or any [*] ECN Node, or use Publicly Available Software in whole or in part in the
development of any part of the Services in a manner that may subject the Services, Limelight
Software or any [*] ECN Node, in whole or in part, to all or part of the license obligations
of any Publicly Available Software. Microsoft acknowledges that Limelight has disclosed
that certain software systems that it uses in the operation of its content delivery
infrastructure are based on Publicly Available Software as set forth in Exhibit C-1.

Except as otherwise provided in this Agreement, Limelight expressly disclaims, all other
representation, warranties or conditions, whether express, implied, statutory or otherwise,
including, without limitation, the implied warranties of merchantability, title, and fitness for a
particular purpose. For purposes of clarity, Limelight Software is licensed “as is” and Limelight
makes no warranty, express or implied, including the implied warranty of fitness for a particular
purpose, for any Limelight Software. Limelight does not warrant uninterrupted or error-free
operation of any Limelight Software.

     (b) By Microsoft. Microsoft represents and warrants to Limelight that:

     1. Microsoft is duly incorporated, organized and validly existing and in good standing
under the laws of the state of Washington, has all requisite rights, powers, authority,
licenses and permits and has undertaken all actions and has fulfilled all conditions to
enter into, to perform under and to comply with its obligations under this Agreement
including, but not limited to, to grant any rights and licenses as set forth herein;

     2. Microsoft’s representative whose signature is affixed to this Agreement has full
capacity and authority to bind it to the terms hereof;

     3. Microsoft is not presently under, nor will it enter into in the future, any
agreement, commitment, understanding or other obligation, whether written or oral, which is
inconsistent or in conflict with this Agreement or would in any way or to any extent
prevent, limit or otherwise impair its performance of any of its obligations hereunder or in
connection herewith; and

     4. there is presently no suit, action, proceeding or other claim pending or threatened,
against it, or, to the best of its knowledge, any third party, nor does any fact

 
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exist which
may be the basis of any such action, suit, proceeding or other claim, with respect to this
Agreement or which could have a material adverse effect on Microsoft’s capacity to perform
under this Agreement.

Except as otherwise provided in this Agreement, Microsoft expressly disclaims all other
representations, warranties or conditions, whether express, implied, statutory or otherwise,
including, without limitation, the implied warranties of merchantability, title, and fitness for
a particular purpose. For purposes of clarity, any Microsoft Modifications provided are “as
is,” “with all faults,” and without warranty guarantees or conditions of any kind.

     (c) Consequential Damages. EXCEPT FOR OBLIGATIONS UNDER SECTION 14 OR A BREACH OF SECTION 10
IN NO EVENT WILL EITHER PARTY BE LIABLE OR RESPONSIBLE TO THE OTHER FOR ANY SPECIAL, INCIDENTAL,
PUNITIVE, INDIRECT, EXEMPLARY, OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOST
REVENUE OR LOST PROFITS, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER ARISING UNDER
THEORY OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.

14. GENERAL INDEMNIFICATION.

     (a) By Limelight.

          (1) Limelight agrees to defend, hold harmless, and indemnify Microsoft and its
subsidiaries, affiliates, directors, officers, employees, and agents (“Microsoft Indemnified
Parties”), from and against all claims, damages, losses, suits, actions, demands,
proceedings, expenses, and liabilities of any kind, (including reasonable attorneys’ fees
incurred and/or those necessary to successfully establish the right to indemnification)
threatened, asserted or filed (collectively, “Microsoft Claims”) against any Microsoft
Indemnified Party, to the extent that such Microsoft Claims arise out of or relate to (i)
bodily injury or death to any person arising out of or related to the Services, the
Limelight Software or the [*] ECN Node, (ii) loss, disappearance, or damage to property
arising out of or related to the Services, the Limelight Software or the [*] ECN Node, (iii)
taking the claimant’s allegations to be true, would result in a breach by Limelight of any
covenant, warranty or representation made by Limelight in this Agreement, and/or (iv)
infringement, violation or misappropriation of any Intellectual Property Right or other
proprietary right of any third party by, or arising out of or related to, the Services, the
Limelight Software, or the [*] ECN Node.

          (2) If any action is brought against any Microsoft Indemnified Party in which indemnity
is sought from Limelight, Microsoft shall (i) provide Limelight reasonably prompt notice of
any such Microsoft Claim; (ii), except for Patent Claims, defined below, permit Limelight,
through counsel mutually acceptable to Microsoft and Limelight, to answer and defend such
Microsoft Claim; and (iii) provide Limelight information and reasonable assistance at
Limelight’s expense to help Limelight defend such Microsoft Claim.

          (3) Microsoft shall have the right to employ separate counsel and participate in the
defense of any Microsoft Claim at its own expense. Limelight shall

 
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reimburse Microsoft for
any payments made or losses suffered based upon the judgment of any court of competent
jurisdiction or pursuant to a bona fide compromise or settlement of Microsoft Claims.
Limelight shall not settle any Microsoft Claim on Microsoft’s behalf without first obtaining
Microsoft’s written permission.

          (4) Patent Indemnity. In the event a Microsoft Indemnified Party seeks
indemnification for Microsoft Claims caused by the alleged infringement of patent rights of
any third party ( “Patent Claims”), then the responsibility for the Patent Claim shall be as
follows: (i) [*] shall be solely responsible for the monetary amount of Patent Claims
from US$[*] to US$[*]; (ii) Microsoft and Limelight shall each be responsible for [*] of the
monetary amount of Patent Claims from US$[*] to US$[*], and (iii) Microsoft shall be solely
responsible for the monetary amount of Patent Claims over US$[*]. Microsoft shall be
responsible for selecting counsel for defending any Patent Claims. Limelight shall have the
right to employ separate counsel and participate in the defense of any Patent Claims at its
own expense. [*].

     (b) By Microsoft.

          (1) Microsoft agrees to defend, hold harmless, and indemnify Limelight and its
subsidiaries, affiliates, directors, officers, employees, and agents (“Limelight Indemnified
Parties”), from and against all claims, damages, losses, suits, actions, demands,
proceedings, expenses, and liabilities of any kind, (including reasonable attorneys’ fees
incurred and/or those necessary to successfully establish the right to indemnification)
threatened, asserted or filed (collectively, “Limelight Claims”) against any Limelight
Indemnified Party, to the extent that such Limelight Claims, taking the allegations
contained therein to be true, would result in a breach by Microsoft of any covenant,
warranty or representation made by Microsoft in this Agreement.

          (2) If any action is brought against any Limelight Indemnified Party in which indemnity
is sought from Microsoft, Limelight shall (i) provide Microsoft reasonably prompt notice of
any such Limelight Claim; (ii) permit Microsoft, through counsel mutually acceptable to
Microsoft and Limelight, to answer and defend such Limelight Claim; and (iii) provide
Microsoft information and reasonable assistance at Microsoft’s expense to help Microsoft
defend such Claim.

          (3) Limelight shall have the right to employ separate counsel and participate in the
defense of any Limelight Claim at its own expense. Microsoft shall reimburse Limelight for
any payments made or losses suffered based upon the judgment of any court of competent
jurisdiction or pursuant to a bona fide compromise or settlement of Limelight Claims.
Microsoft shall not settle any Limelight Claim on Limelight’s behalf without first obtaining
Limelight’s written permission.

 
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     (c) Should the Services, the Limelight Software or the [*] ECN Node (or any portion thereof)
be held to constitute an infringement, Limelight shall notify Microsoft and immediately, at
Limelight’s expense: (i) procure for Microsoft the right to continued use of the Services, the
Limelight Software or the [*] ECN Node (or any portion thereof as applicable) or (ii) replace or
modify the Services, the Limelight Software or the [*] ECN Node (or any portion thereof as
applicable) such that it is non-infringing, provided that the replacement or modification meets the
requirements of this Agreement to Microsoft’s satisfaction.

     (d) The indemnification set forth in this Section 14 applies to the specific scope set forth
in this Agreement. The Parties have agreed to [*]. For purposes of clarity, no Party
shall receive indemnification for the same loss under both this
Agreement and the [*].

15. INSURANCE. Limelight shall keep in full force and effect during the term of this Agreement:
(i) comprehensive general liability insurance in an amount not less than $2 million per occurrence
for bodily injury and property damage; and (ii) workers’ compensation insurance in an amount not
less than that required by applicable law. Limelight shall ensure that its contractors and
subcontractors obtain and maintain the same types and amount of coverages as required of Limelight
herein. On Microsoft request, Limelight will deliver to Microsoft, certificates of insurance which
evidence the minimum levels of insurance set forth in this section.

16. TAXES. Microsoft is not liable for any taxes that Limelight is legally obligated to pay and
which are incurred or arise in connection with the sale of Services, the Limelight Software license
or any other payment to Limelight under this Agreement. All taxes (including but not limited to
net income or gross receipts taxes, franchise taxes, and property taxes) shall be Limelight’s
financial responsibility. Microsoft may provide Limelight with a valid exemption certificate, and
Limelight shall not collect taxes covered by the certificate. Limelight shall indemnify, defend
and hold Microsoft harmless from any taxes (including sales or use taxes paid by Microsoft) or
claims, causes of action, costs (including without limitation, reasonable attorneys’ fees) and any
other liabilities of any nature whatsoever related to taxes. Notwithstanding the foregoing,
Microsoft shall pay Limelight any sales or use taxes owed by Microsoft solely as a result of
entering into and performing this Agreement and which are required to be collected from Microsoft
by Limelight under applicable law. If taxes are required to be withheld on any amount to be paid
by Microsoft to Limelight, Microsoft shall deduct them from the amount owed and pay them to the
appropriate taxing authority. At Limelight’s written request and expense, Microsoft shall use
reasonable efforts to assist Limelight in obtaining tax certificates or other documentation
evidencing such payment, but the responsibility for documentation remains with Limelight. This
section shall govern the treatment of all taxes arising in connection with this Agreement
notwithstanding any other section of this Agreement.

 
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17. TERM OF AGREEMENT; DEFAULT.

     (a) Duration. Subject to Section 17(b)-(c) hereof, the period of time during which this
Agreement shall be in effect (the “Term”) commences on the Effective Date and shall continue for a
period of [*] thereafter. This Agreement shall be renewable by mutual agreement of
Microsoft and Limelight.

     (b) Termination for Cause. Either Party may terminate this Agreement if:

     1. the other Party breaches any material term or condition of this Agreement and fails
to cure such breach within [*] after receipt of written notice of the
same;

     2. the other Party becomes the subject of a voluntary petition in bankruptcy or any
voluntary proceeding relating to insolvency, receivership, liquidation, or composition for
the benefit of creditors, if such petition or proceeding is not dismissed within [*] of filing; or

     3. the other Party becomes the subject of an involuntary petition in bankruptcy or any
involuntary proceeding relating to insolvency, receivership, liquidation, or composition for
the benefit of creditors, if such petition or proceeding is not dismissed within [*] of filing.

     (c) Microsoft Termination. Microsoft may terminate this Agreement:

     1. If there is a [*] involving a [*], or Limelight [*] relating to the subject matter
of this Agreement to a [*], provided that Microsoft gives Limelight notice of such
termination within [*] after Limelight gives Microsoft written
notice of such [*]. In the event that there is a [*] involving a [*], or Limelight [*]
relating to the subject matter of this Agreement to a [*] and Microsoft does not elect to
terminate this Agreement as permitted by this section, then this Agreement in its entirety
shall bind any applicable successor to the same extent as it binds Limelight (including, but
not limited to, being subject to Microsoft’s termination right as set forth in this Section
17(c)(1));

     2. If Limelight breaches its obligations under the Microsoft Edge Computing Network
Support Services, and (i) fails to cure such breach within [*] after
receipt of written notice of the same, or, (ii) if curing such breach cannot be accomplished
within [*] after receipt of written notice of the same and Limelight
is using reasonable diligence to cure such breach, Limelight fails to cure such breach
within the later of (A) the date Limelight fails to use reasonable diligence to cure such
breach, or (B) [*] after receipt of written notice of same.

     (d) Effect of Termination and Survival. In the event this Agreement terminates prior to
completing the Term, then Limelight and Microsoft ensure that each [*] ECN Node operates
independent of all Limelight facilities, except for those dependencies agreed to in writing.
Notwithstanding termination of this Agreement, Microsoft shall pay to Limelight all Services Fees
earned prior to termination that are not Disputed Amounts and subject to offset as set forth in
this Agreement, and each Party shall return any Confidential Information or property of the other
Party within [*] from the date of such termination. In addition, Limelight shall return
all data derived from Services performed under this Agreement to Microsoft within

 
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[*] from the date of such termination. Sections 1, 3 (provided Microsoft has submitted a
Limelight Software Acceptance and paid the Limelight Software Fee), 4 (a), 5 (solely with respect
to Fees accruing as of the date of termination or expiration), 9, 10, 11, 12, 13, 14, 15 (for [*]), 16, 17, 18 (for [*]), 19, 20, and 21 will survive any termination or expiration of
this Agreement. Section 7 shall survive expiration of this Agreement but not termination of this
Agreement. For purposes of clarity, the survival of all other agreements between Limelight and
Microsoft shall be in accordance with the respective terms of those agreements, including but not
limited to, the Limelight Content Delivery Service Agreement and any co-location agreements formed
using the Form Co-Location Agreement.

     (e) Transition of Services. Upon the expiration or termination of this Agreement and for up
to six (6) months following the effective date of such expiration or termination (the “Transition
Period”), Limelight will provide to Microsoft assistance as reasonably requested by Microsoft to
facilitate the orderly transfer of the Services to a third party which will provide services
similar to those Services provided by Limelight hereunder. During the Transition Period Limelight
will be compensated based on mutually agreeable rates for these transition services not to exceed
the pricing described in this Agreement for comparable services or, if the transition services are
not comparable to services described in this Agreement, as mutually agreed by the Parties.

18.
RECORDS AND AUDIT. During the term of this Agreement and for [*] thereafter,
Limelight agrees to keep all usual and proper records and books of account and all usual and proper
entries relating to its costs and expenses, and the quality and performance reports in providing
the Services and meeting its other obligations under this Agreement. Also, during the above
referenced period, Microsoft shall have the right to cause an audit and/or inspection to be made of
the applicable Limelight records and facilities in order to verify statements issued by Limelight
(and Subcontractor, if applicable) related to compliance with the terms of this Agreement. Any such
audit shall be conducted by Microsoft corporate internal audit or a certified public accountant
selected by Microsoft. Except as specified herein, Microsoft shall be responsible for all costs and
attorney fees related to such audits. Limelight agrees to provide Microsoft’s designated audit or
inspection team access to the relevant Limelight records and facilities. If an audit reveals that
Limelight has misstated any amounts or reports by five percent (5%) or more for any audited period
of time, Limelight agrees, in addition to re-computing and making appropriate adjustments to
Microsoft, to pay Microsoft all reasonable costs and expenses incurred by Microsoft in conducting
such audit, including, but not limited to, any amounts paid to any auditor or attorney.

19. MICROSOFT TRADEMARKS. Limelight shall not use the Microsoft name or other Microsoft trademarks
in any manner, except as expressly permitted under this Agreement.

 
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20. NOTICES. All notices, authorizations, and requests in connection with this Agreement shall be
deemed given: (i) on the day they are deposited in the U.S. mails, postage prepaid, certified or
registered, return receipt requested; (ii) on the day they are sent by air express courier, charges
prepaid; or (iii) on the day of transmittal if sent by facsimile; and addressed as follows:

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	To Limelight:

         Attention:

         Fax:
	 	Limelight Networks, Inc.

2220 W. 14th Street

Tempe, AZ 85281

Michael Gordon, Chief Strategy Officer

(602) 850-5264
	 
	 	 	 	 
	 

	 	Copy to:

         Attention:

         Fax:
	 	Limelight Networks, Inc.

2220 W. 14th Street

Tempe, AZ 85281

General Counsel

(602) 850-5001
	 
	 	 	 	 
	 

	 	To Microsoft:

         Attention:

         Fax:
	 	Microsoft Corporation

One Microsoft Way

Redmond, WA 98052-6399

Vice President, Global Foundation Services

(425) 936-7329
	 
	 	 	 	 
	 

	 	Copy to:

         Attention:

         Fax:
	 	Microsoft Corporation

One Microsoft Way

Redmond, WA 98052-6399

Deputy General Counsel, Legal & Corporate Affairs,

Platforms and Services Division

(425) 706-7329

Either Party may change the above information by giving written notice to the other Party pursuant
to this section.

21. OTHER PROVISIONS.

     (a) RELATIONSHIP OF PARTIES. LIMELIGHT AND MICROSOFT ARE INDEPENDENT CONTRACTORS AND THIS
AGREEMENT WILL NOT ESTABLISH ANY RELATIONSHIP OF PARTNERSHIP, JOINT VENTURE, EMPLOYMENT, FRANCHISE
OR AGENCY BETWEEN LIMELIGHT AND MICROSOFT. NEITHER LIMELIGHT NOR MICROSOFT WILL HAVE THE POWER TO
BIND THE OTHER OR INCUR OBLIGATIONS ON THE OTHER’S BEHALF WITHOUT THE OTHER’S PRIOR WRITTEN
CONSENT.

     (b) Governing Law. This Agreement shall be construed and controlled by the laws of the State
of Washington, and the Parties consent to exclusive jurisdiction and venue in the

 
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federal courts sitting in the Western District of Washington, unless no federal subject matter
jurisdiction exists, in which case the Parties consent to exclusive jurisdiction and venue in the
State courts of King County, Washington. The Parties waive all defenses of lack of personal
jurisdiction and forum non-conveniens. Process may be served on either Party in the manner
authorized by applicable law or court rule.

     (c) Severability; Waiver. If any provision of this Agreement is held by a tribunal of
competent jurisdiction to be contrary to the law, then the remaining provisions of this Agreement
will remain in full force and effect, except that if such court finds any of the provisions of
Sections 3, 4, 11, or of the NDA, to be unenforceable, either Party may elect to terminate the
Agreement. The waiver of any breach or default of this Agreement will not constitute a waiver of
any subsequent breach or default, and will not act to amend or negate the rights of the waiving
Party.

     (d) Assignment. Upon the written notice to Limelight, Microsoft may assign this Agreement in
whole to any wholly owned subsidiary or an affiliate in which it holds at least fifty percent (50%)
ownership interest, or as part of a corporate reorganization, consolidation, merger, or sale of
substantially all of its assets. Microsoft may not otherwise assign its rights or delegate its
duties under this Agreement either in whole or in part without the prior written consent of
Limelight, and any attempted assignment or delegation without such consent will be void. Except to
a successor in interest to substantially all of Limelight’s assets (and subject to Section 7 and
Section 17(c)(1)), Limelight shall not sell, assign, transfer, pledge or encumber any of its rights
or delegate any of its duties or obligations under this Agreement (by actual assignment or by
operation of law, including without limitation through a merger, acquisition, consolidation,
exchange of shares, or sale or other disposition of assets, including disposition on dissolution),
without the prior written consent of Microsoft. This Agreement will bind and inure to the benefit
of each Party’s permitted successors and permitted assigns.

     (f) Precedence. To the extent that any provision contained in any exhibit is inconsistent or
conflicts with this Agreement (exclusive of the exhibit), the provisions of this Agreement
(exclusive of the exhibit) shall control over the exhibit. To the extent that any provision
contained in the Limelight Content Delivery Service Agreement is inconsistent or conflicts with
this Agreement, the provisions of this Agreement shall control over the Limelight Content Delivery
Service Agreement.

     (g) Amendment. This Agreement may be amended only in a written agreement signed by all
Parties, except that Microsoft reserves the right to unilaterally modify the MVG as it deems
necessary from time to time and Limelight agrees to comply with all such modifications.

     (h) No Solicitation. From and after execution of this Agreement through the end of the Term,
neither Limelight or persons within the Global Foundation Services group of Microsoft will solicit
the employees of the other without the consent of the other, except for any persons hired by
Limelight related to a [*] ECN Node, and except persons hired as the result of indirect
solicitations (e.g., general newspaper advertisements, employment agency referrals and internet
postings).

     (i) Press Releases/Publicity. Except as permitted under the Limelight Content Delivery
Service Agreement, Limelight shall not issue press releases or publicity in any form

 
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that relates to this Agreement and Limelight shall not use the name “Microsoft” or “Microsoft
Corporation” or any Microsoft trademarks. The foregoing notwithstanding, Microsoft consents to
permit Limelight to issue the press release set forth in Exhibit G.

     (j) Entire Agreement. The Limelight Content Delivery Service Agreement and the NDA each
exists as a separate agreement between the Parties and except for the Limelight Content Delivery
Service Agreement and the NDA, this Agreement contains the entire agreement between the Parties
with respect to the subject matter hereof and, supersedes all oral understandings, representations,
prior discussions and preliminary agreements. Any representations, warranties, promise or
conditions not expressly contained in this Agreement shall not be binding upon the Parties. This
Agreement may be executed electronically and in two or more counterparts, each of which will be
deemed an original, but all of which together shall constitute one and the same instrument. Once
signed by both Parties, any reproduction of this Agreement made by reliable means (e.g., photocopy,
facsimile) is considered an original.

[Remainder of Page Intentionally Left Blank]

 
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EXHIBIT 10.1                                                      

BEAVERTON
LEASE AGREEMENT

 

INDUSTRIAL
LEASE AGREEMENT

THIS INDUSTRIAL LEASE AGREEMENT (this “Lease”) dated for
references purposes only is made between PS, Business Parks, L.P. a California
limited partnership (“Landlord”), and Pro-Dex. Inc. a Colorado corporation
(“Tenant”), as of September 24, 2007 (the “date of this Lease”).

BASIC LEASE INFORMATION

PREMISES:      Approximately
7,482 rentable square feet commonly known as Suite B-1 15201 NW Greenbrier
Parkway, Beaverton, Oregon as depicted on Exhibit A-1.

BUILDING
& PROJECT:  Approximately 22,920 rentable square feet located at NW Greenbrier Parkway, Beaverton, OR 97006 and commonly referred to as the Ridgeview B Building, as depicted on Exhibit A-2. The Building is a part of the Project
commonly referred to as Ridgeview  and contains approximately 93,143 square
feet, as depicted and more particularly described on Exhibit A-2. The project
is part of the property commonly referred to as Cornell Oaks Corporate Center and contains approximately 688,216 square feet as depicted on Exhibit A-2.

PERMITTED USE:      General
office use and laboratory and warehouse purposes for motion control devices.

TERM:    A
period of 76 months and 0 days.  Subject to Section 1.02, the Term shall
commence on November 1, 2007 (the “Commencement Date”) and, unless terminated
early in accordance with this Lease, end on February 28, 2014 (the
“Termination Date”).

BASE RENT:

 

	
  Period
  of Term

  	
  Monthly

  Base
  Rent

  	
  Annual

  Base
  Rent

  
	
  11-01-07
  to 02-29-08

  	
  $0.00

  	
  $0.00

  
	
  03-01-08
  to 10-31-08

  	
  $6,060.00

  	
  $72,720.00

  
	
  11-01-08
  to 10-31-09

  	
  $6,242.00

  	
  $74,904,00

  
	
  11-01-09
  to 10-31-10

  	
  $6,429.00

  	
  $77,148.00

  
	
  11-01-10
  to 10-31-11

  	
  $6,622.00

  	
  $79,464,00

  
	
  11-01-11
  to 10-31-12

  	
  $6,821.00

  	
  $81,852.00

  
	
  11-01-12
  to 10-31-13

  	
  $7,026.00

  	
  $84,312.00

  
	
  11-01-13
  to 2-28-14

  	
  $7,237.00

  	
  $86,844.00

  

ESTIMATED INITIAL MONTHLY OPERATING EXPENSES: $2,244.60 per
month, subject to Exhibit D.

SECURITY DEPOSIT: $9,481.60

TENANT’S PROPORTIONATE SHARE OF BUILDING: 32.64% OF PROJECT:
8.0328% OF PROPERTY: 1.0872%

PARKING
DENSITY:        Approximately 3.4 unreserved spaces per 1,000 square feet of
the Premises, which spaces shall be in common with other tenants of the
Project, at no cost to Tenant during for the duration of the Lease.

LANDLORD’S BROKER: Trevor Kafoury 

CB Richard Ellis

 

 

-1-

 

 

 

 

 

TENANT’S BROKER:       Josh Schweitz

GVA Kidder Matthews

TENANT’S SIC CODE: 384

ADDRESSES FOR

NOTICES:                          To: Tenant                                      To: 
Landlord

                                          151 E. Columbine Avenue                15455 NW  Greenbrier Parkway, Suite 245

                                          Santa Ana,  California 92707             Beaverton, Oregon 97006

                                          Attn: Jeff Ritchey                            Attn:     ___________________

                                          FAX: 714-433-7200                                  FAX:
503-629-4821 

TENANT’S BILLING ADDRESS if different from Notice Address —
same as above

LANDLORD’S
REMITTANCE ADDRESS:    PS Business Parks, Pacific NW, PO Box 39000, Dept. #33666,

  San Francisco, California 94139 

This Lease consists of the foregoing Basic Lease Information, the
following Lease provisions consisting of Sections 1 through 28 and Exhibits
A-1, A-2, B, C, D and E all of which are incorporated herein by this reference.
Defined terms used in this Lease and included in the Basic Lease Information
shall have the meanings given them in the Basic Lease information.

1.         Lease of Premises; Compliance with Laws;
Surrender.

1.01      Landlord leases to Tenant, and Tenant leases from Landlord,
the Premises, upon the terms of this Lease. The Premises are leased “AS IS”
except only for the improvements, if any, which are to be constructed by
Landlord pursuant to Exhibit B. Tenant acknowledges that neither Landlord nor
any agent of Landlord has made any representation or warranty regarding the
Premises, except as otherwise expressly provided in this Lease. By taking
possession of the Premises, Tenant agrees that the Premises are in good order
and satisfactory condition. The square footages set forth in this Lease are
approximate and agreed. For purposes of this Lease, the term “Property” means
the Building (as defined above in the Basic Lease information), the Project (as
defined above in the Basic Lease Information), and the parcel(s) of land on
which they are located and, at Landlord’s discretion, the parking facilities
and other improvements, if any, serving the Building, Project and/or the
parcel(s) of land on which they are located. if the Project is part of a larger
complex of structures, the term “Property” may include the entire complex,
where appropriate in Landlord’s reasonable discretion.

 

 

 

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1.02      If for any reason Landlord cannot deliver possession of
the Premises on the Commencement Date, Landlord will not be subject to any
liability nor will the validity of this Lease be affected in any manner.
Rather, the actual Commencement Date shall be delayed until delivery of
possession in which event the Termination Date shall be extended to include the
same number of full calendar months as set forth in the Basic Lease Information
(plus any partial first month); provided, in the event delivery of possession
is delayed by any act, omission or request of Tenant or any Tenant Entity, then
the Premises shall be deemed to have been delivered (and the actual
Commencement Date shall occur) on the earlier of the actual date of delivery or
the date delivery would have occurred absent the number of days of such delay
attributable to Tenant and the Term (as defined above in the Basic Lease
Information) shall then be for such number of full calendar months (plus any
partial first month). Upon request made by Landlord following the Commencement
Date, Tenant shall execute and deliver a commencement letter setting forth the
actual Commencement Date, the date upon which the Term shall expire, and such
other matters regarding the commencement of this Lease as Landlord shall
request. Tenant’s failure to execute and return the commencement letter, or to
provide written objection to the statements contained in the commencement
letter, within 10 days after the date of the commencement letter shall be
deemed an approval by Tenant of the statements contained therein.
Notwithstanding the foregoing, if the Commencement Date has not occurred on or
before the Outside Date (defined below) due to no fault of Tenant, Tenant, as
its sole remedy, may terminate this Lease by giving Landlord written notice of
termination on or before the Outside Date. If such a termination notice is so
given to Landlord, Landlord shall promptly refund any prepaid rent and Security
Deposit previously advanced by Tenant under this Lease so long as Tenant has
not previously defaulted under any of its obligations under this Lease or
Exhibit B (Tenant Improvements), this Lease shall be null and void and the parties
hereto shall have no further responsibilities or obligations to each other with
respect to this Lease except with respect to any such defaults and any
obligations which survive a termination of this Lease. The “Outside Date” shall
mean the date which is 90 days after the later of the date this Lease is
properly executed and delivered by Tenant, the data all prepaid rental and the
Security Deposit under this Lease is delivered to Landlord, the date the
building permit for the Tenant Improvements (as defined in Exhibit B) has been
obtained. Landlord and Tenant acknowledge and agree that the Outside Date shall
be postponed by the number of days the Commencement Date is delayed due to
Tenant Delays (defined in Exhibit B) and events of force majeure as provided in
Article 26. Notwithstanding anything herein to the contrary, if Landlord
determines in good faith that it will be unable to cause the Commencement Date
to occur by the Outside Date, Landlord shall have the right to immediately
cease its performance of the Tenant Improvements performed by Landlord and
provide Tenant with written notice (the “Completion Date Extension Notice”) of
such inability, which Completion Date Extension Notice shall set forth the date
on which Landlord reasonably believes that the Commencement Date will occur.
Upon receipt of the Completion Date Extension Notice, Tenant shall have the
right to terminate this Lease by providing written notice of termination to
Landlord within 5 business days after the date of the Completion Date Extension
Notice. If Tenant does not terminate this Lease within such 5 business day
period, the Outside Date automatically shall be amended to be the date set
forth in Landlord’s Completion Date Extension Notice. in addition, if the
Commencement Date has not occurred on or before the date that is 180 days
following the date that is the rater of the date this Lease is properly
executed and delivered by Tenant and the date all prepaid rental and the
Security Deposit under this Lease is delivered to Landlord for any reason,
Tenant, as its sole remedy, may terminate this Lease by giving Landlord written
notice of termination on or before the expiration of such 180 day period. If
such a termination notice is so given to Landlord, Landlord shall promptly
refund any prepaid rent and Security Deposit previously advanced by Tenant
under this Lease so long as Tenant has not previously defaulted under any of
its obligations under this Lease or Exhibit B (Tenant Improvements) (provided
that such funds shall be retained by Landlord to the extent required to
compensate Landlord for damage or loss sustained by Landlord in connection with
such default in accordance with Article 18 (Remedies) below), this Lease shall
be null and void and the parties hereto shall have no further responsibilities
or obligations to each other with respect to this Lease except with respect to
any such defaults and any obligations which survive a termination of this
Lease.

1.03      If Landlord elects to permit Tenant to enter upon the
Premises prior to the Commencement Date for the sole purpose of installing
furniture, equipment or other personal property or any other purpose permitted
by Landlord other than for the conduct of its business, such early entry shall
be at Tenant’s sole risk and shall be subject to all the terms and provisions
of this Lease, except that Tenant shall not be required to pay Base Rent or
Tenant’s Proportionate Share of Operating Expenses for any days of possession
before the Commencement Date during which Tenant, with the approval of
Landlord, is in possession of the Premises for the sole purpose of performing
improvements or installing furniture, equipment or other personal property. If
Tenant takes possession of the Premises before the Commencement Date for any
other purpose, such possession shall be subject to the terms and conditions of
this Lease, including without limitation, Tenant’s obligation to pay rent
hereunder, and the date Tenant takes possession of the Premises shall be deemed
to be the Commencement Date,

 

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1.04      Tenant, at its sole expense, agrees to comply with all
federal, state and local laws, codes, ordinances, statutes, rules, regulations
and other legal requirements (including covenants and restrictions) applicable
to the Premises (collectively, “Laws”). Tenant agrees to cause the Premises to
comply with all Laws, including by making any changes to the Premises
necessitated by any Tenant activity, including but not limited to changes
required by (a) any Tenant Improvements or Tenant Alterations (as defined below),
or (b) any use of the Premises or Property by Tenant or any Tenant Entity. If
any activity of Tenant or any Tenant Entity necessitates changes to the Project
other than the Premises, then Landlord shall elect that Landlord accomplish the
same at Tenant’s expense or that Tenant accomplish the same at its own expense.
In the event that as a result of Tenant’s use, or intended use, of the
Premises, the Americans with Disabilities Act or any other Law requires
modifications or the construction or installation of improvements in or to the
Premises, Building, Project and/or common areas of the Property (as the same
are identified from time to time by Landlord for common use) (the “Common
Areas”), the parties agree that such modifications, construction or improvements
shall be made at Tenant’s expense. As of the date hereof, to Landlord’s actual
knowledge, Landlord has not received written notice from any governmental
agencies that the Building is in violation of any Laws (including, without
limitation, the Americans with Disability Act), which violation has not been
cured. For purposes of this Section, “Landlord’s actual knowledge” shall be
deemed to mean and limited to the current actual knowledge of Coby Holley, Vice
President, at the time of execution of this Lease and not any implied, imputed,
or constructive knowledge of said individual or of Landlord or any Landlord
Related Parties or any other party related to Landlord and without any
independent investigation or inquiry having been made or any implied duty to
investigate or make any inquiries; it being understood and agreed that such
individual shall have no personal liability in any manner whatsoever hereunder
or otherwise related to the transactions contemplated hereby.  Notwithstanding
anything to the contrary contained herein, Landlord shall be responsible for
correcting any violations of Title III of the Americans with Disabilities Act
with respect to the Premises or the Common Areas of the Building; provided that
Landlord’s obligation with respect to the Premises shall be limited to
violations that arise out of the Tenant Improvements (defined in Exhibit B)
performed by Landlord only and/or the condition of the Premises at the
execution of this Lease and prior to the installation of any furniture, equipment
and other personal property of Tenant; and provided further that Tenant, not
Landlord, shall be responsible for the correction of any violations that arise
out of or in connection with any claims brought under any provision of the
Americans with Disabilities Act other than Title III, the specific nature of
Tenant’s business in the Premises, the acts or omissions of Tenant or any
Tenant Entity, the arrangement of any furniture, equipment or other property in
the Premises, any repairs or Tenant Alterations performed by or on behalf of
Tenant (other than the Tenant Improvements performed by Landlord), requirements
of any employees of Tenant, and any design or configuration of the Premises
specifically requested by Tenant. Landlord shall have the right to contest any
alleged violation in good faith, including, without limitation, the right to
apply for and obtain a waiver or deferment of compliance, the right to assert
any and all defenses allowed by law and the right to appeal any decisions,
judgments or rulings to the fullest extent permitted by law. The cost of any
such compliance by Landlord shall constitute an Operating Expense hereunder.
Landlord or such other person(s) as Landlord may appoint shall have the
exclusive control and management of the Common Areas. Landlord shall have the
right, in Landlord’s sole discretion, from time to time, (i) to make changes to
the Common Areas, including, without limitation, changes in the location, size,
shape and number of the lobbies, windows, stairways, air shafts, elevators,
escalators, restrooms, driveways, entrances, parking spaces, parking areas,
loading and unloading areas, ingress, egress, direction of traffic, landscaped
areas, walkways and utility raceways, (ii) to close temporarily any of the
Common Areas for maintenance purposes so long as reasonable access to the
Premises remains available, (iii) to designate other land outside the
boundaries of the Property to be a part of the Common Area, (iv) to add
additional buildings and improvements to the Common Areas, and (v) and to do
and perform such other acts and make such other changes in, to or with respect
to the Common Areas and Property as Landlord may, in the exercise of sound
business judgment, deem to be appropriate; provided that such changes do not materially
and adversely interfere with the Permitted Use of the Premises.

1.05      Upon expiration or termination of this Lease, Tenant
agrees to remove all of Tenant’s personal property from the Premises and return
the Premises to Landlord in the same condition as received by Tenant (excepting
normal wear and tear) with all removal, repair, and restoration duties of
Tenant, including without limitation pursuant to Section 9.04, being fully
performed to Landlord’s reasonable satisfaction. Notwithstanding any other
provision of this Lease to the contrary, Tenant shall remove at its expense in
compliance with the National Electric Code or other applicable Law, at or prior
to the expiration or termination of this Lease, all wiring and cabling
installed at or about the Premises which shall have been installed by or on
behalf of Tenant. Such wiring and cabling shall include but not be limited to
(a) wiring and cabling above the ceiling panels, behind or within walls, and
under or within floors, and (b) wiring and cabling for voice, data, security or
other purposes. If Tenant abandons, vacates, or surrenders the Premises, or is
dispossessed by process of Law, or otherwise, any personal property belonging
to Tenant left in or about the Premises will, at the option of Landlord, be
deemed abandoned and may be disposed of by Landlord at the expense and risk of
Tenant.

1.06      Landlord has no duty to provide security for any
portion of the Property. To the extent Landlord elects to provide any security,
Landlord is not warranting the effectiveness of any security personnel,
services, procedures or equipment and Tenant shall not rely on any such
personnel, services, procedures or equipment. Landlord shall not be liable for
failure of any such security personnel, services, procedures or equipment to
prevent or control, or to apprehend anyone suspected of, personal injury or
property damage in, on or around the Property.

2.         Base Rent. On or before the first day of each
calendar month of the Term, Tenant will pay to Landlord the Base Rent for such
month. Base Rent and Additional Rent (defined below) for any first partial
month and for the first full calendar month of the Term, together with the
Security Deposit, are due and payable upon execution of this Lease.  Monthly
rent for any partial calendar month will be prorated. All sums and other
charges payable by Tenant to Landlord hereunder shall be deemed rent.  Base
Rent and all other amounts required to be paid by Tenant hereunder shall be
paid without deduction or offset and without prior notice or demand. All such
amounts shall be paid in lawful money of the United States of America and shall
be paid to Landlord at the address stated herein or to such other persons or to
such other places as Landlord may designate in writing from time to time.
Amounts payable hereunder shall be deemed paid when actually received by
Landlord.

 

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3.         Additional Rent. Unless otherwise specifically
stated in this Lease, any charge payable by Tenant under this Lease other than
Base Rent is called “Additional Rent.” The term “rent” whenever used in this
Lease means Base Rent, Additional Rent and/or any other charge, fee or monies
payable by Tenant under the terms of this Lease. Tenant shall pay Tenant’s
Proportionate Share of Operating Expenses in accordance with Exhibit D of this
Lease.

4.         Late Charges. If any sum payable by Tenant to
Landlord is not received by Landlord on the date due, Tenant shall pay a late
charge equal to the greater of (a) $50.00, or (b) 10% or the highest per annum
rate of interest permitted from time to time under applicable Law (whichever is
less) of the then delinquent amount. A $50,00 handling fee will be paid to
Landlord by Tenant for each bank returned check. In the event of a Default,
Tenant, at Landlord’s election, shall make all future payments to Landlord by
wire or electronic transfer, by cashier’s check or by an automatic payment from
Tenant’s bank account to Landlord’s account, in each case without cost to
Landlord. The acceptance of late charges and returned check charges by Landlord
will not constitute a waiver of any Tenant default nor any other rights or
remedies of Landlord.

5.         Security Deposit. Upon Tenant’s execution of this
Lease, Tenant will deposit with Landlord the Security Deposit (as defined above
in the Basic Lease Information) in the amount specified in the Basic Lease
Information as security for Tenant’s full and faithful performance of every
provision under this Lease. Landlord will not be required to keep the Security
Deposit separate from its general funds. Without limiting or impairing any
right Landlord may have or hereafter acquire under this Lease or applicable Law
with respect to the Security Deposit, Tenant hereby grants to Landlord a
security interest in the Security Deposit. The Security Deposit is not an
advance rent payment or a measure of damages under this Lease. If Tenant fails
to pay any rent due herein, or otherwise is in default of any provision of this
Lease, Landlord may, without waiver of the default or of any other right or
remedy, use, apply or retain all or any portion of the Security Deposit for the
payment of any amount due Landlord or to compensate Landlord for any loss or
damage suffered by Tenant’s default, Within 5 days after written notification
by Landlord, Tenant will restore the Security Deposit to the full amount
required under this Lease. No part of the Security Deposit shall be considered
to be held in trust, to bear interest (except when required by Law) or to be
prepayment for any monies to Landlord by Tenant under this Lease. Landlord
shall return any unapplied portion of the Security Deposit to Tenant within 45
days after the later to occur of:  (a) determination of the final rent due from
Tenant; or (b) the later to occur of the Termination Date or the date Tenant
surrenders the Premises to Landlord in compliance with this Lease. Landlord may
assign the Security Deposit to a successor or transferee and, following the
assignment, Landlord shall have no further liability for the return of the
Security Deposit.

6.         Use of Premises.

6.01      The Premises will be used and occupied only for the
Permitted Use. Tenant will, at its sole expense, comply with all conditions and
covenants of this Lease, and all Laws. Tenant will not use or permit the use of
the Premises, the Property or any part thereof, in a manner that is unlawful,
diminishes the appearance or aesthetic quality of any part of the Property,
creates waste or a nuisance, or causes damage to the Property.  Tenant shall
not permit any objectionable or unpleasant odors, smoke, dust, gas, noise or
vibrations to emanate from the Premises nor take or permit any other action in
the Premises that would endanger, unreasonably annoy, or interfere with the
operations of, Landlord or any other tenant of the Property.  Tenant shall
obtain, at its sole expense, any permit or other governmental authorization
required for Tenant to legally operate its business from the Premises.  Any
animals, excepting guide dogs, on or about the Property or any part thereof are
expressly prohibited.

6.02      In the event of any excessive trash in or outside the
Premises, as determined by Landlord in its sole discretion, Landlord will have
the right to remove such excess trash, charge all costs and expenses
attributable to its removal to Tenant and impose fines in the event Tenant
fails to remedy the situation.  Tenant will not cause, maintain or permit any
outside storage on or about the Property. In the event of any unauthorized
outside storage by Tenant or any Tenant Entity, Landlord will have the right,
without notice, in addition to such other rights and remedies it may have, to
remove any such storage at Tenant’s expense.

7.         Parking. All parking will comply with the terms
and conditions of this Lease and applicable Rules and Regulations (as defined
in Exhibit C hereto), Tenant will have a non-exclusive privilege on a
“first-come, first-served” basis to use Tenant’s Proportionate Share of those
parking spaces designated by Landlord for public parking. The parking
privileges granted to Tenant are personal to Tenant; Tenant shall not assign or
sublet parking privileges.

 

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8.         Utilities and
Services.

8.01      Tenant agrees to make all arrangements for, and to pay
directly all costs of, utility services supplied to the Premises, including but
not limited to, water, gas, heat, light, power, telephone, and sewer. In the
event it is not possible for Tenant to obtain separate utility and/or other
services, or if Landlord, in its sole discretion, elects to provide any such
utility and/or other services to Tenant, such utility and/or other services
may, at Landlord’s discretion, be obtained in Landlord’s name, and Tenant will
pay Landlord, as Additional Rent, the cost of any utility services provided by
Landlord either: (a) through inclusion in Operating Expenses (except for excess
usage, which will be paid as a separate charge by Tenant to Landlord); (b) by a
separate charge payable by Tenant to Landlord; or (c) by a separate charge
billed by the applicable utility company and payable directly by Tenant.
Landlord reserves the right to separately meter any such service at Tenant’s
expense at any time during the Term.

8.02      Landlord will not be liable or deemed in default, nor
will there be any abatement of rent, breach of any covenant of quiet enjoyment,
partial or constructive eviction or right to terminate this Lease, for (a) any
interruption or reduction of utilities, utility services or telecommunication
services, (b) any telecommunications or other company (whether selected by
Landlord or Tenant) failing to provide such utilities or services or providing
the same defectively, and/or (c) any utility interruption in the nature of
blackouts, brownouts, rolling interruptions, hurricanes, tropical storms or
other natural disasters. If the Premises, or a material portion of the
Premises, are made untenantable for a period in excess of 30 consecutive
business days as a result of any failure to furnish, or any interruption,
diminishment or termination of services due to the application of Laws, the
failure of any equipment, the performance of repairs, improvements or
alterations, utility interruptions or the occurrence of an event of Force
Majeure (collectively, a “Service Failure”) that is reasonably within the
control of Landlord to correct, then Tenant, as its sole remedy, shall be
entitled to receive an abatement of Base Rent and Tenant’s Proportionate Share
of Operating Expenses payable hereunder during the period beginning on the 31st
consecutive business day of the Service Failure and ending on the day the
service has been restored. If the entire Premises have not been rendered
untenantable by the Service Failure, the amount of abatement shall be equitably
prorated. Tenant agrees to comply with any energy conservation programs
required by Law or implemented by Landlord. Landlord reserves the right, in its
sole discretion, to designate, at any time, the utility and service providers
for Tenant’s use within the Property; no such designation shall impose
liability upon Landlord. Tenant has satisfied itself as to the adequacy of any
Landlord owned utility equipment and the quantity of telephone lines and other
service connections to the “Building’s Point of Demarcation” available for
Tenant’s use.

8.03      In the event that Landlord elects, in its sole
discretion, to maintain a preventive maintenance/service contract with respect
to any heating and air conditioning systems and equipment serving the Premises,
and Tenant shall pay to Landlord as Additional Rent, the cost of such contract
and any service either as a separate charge payable by Tenant to Landlord or
through inclusion in Operating Expenses. Notwithstanding the foregoing, at
Landlord’s request at any time during the Term, Tenant shall, at its own cost
and expense, enter into a regularly scheduled preventive maintenance/service
contract with a maintenance contractor approved by Landlord for servicing all
heating and air conditioning systems and equipment serving the Premises (and a
copy thereof shall be furnished to Landlord). The service contract must include
all services suggested by the equipment manufacturer in the
operation/maintenance manual and must become effective within 30 days of the
date Landlord requires Tenant to obtain and maintain such service contract,
Should Tenant fail to do so, Landlord may, upon notice to Tenant, enter into such
service contract on behalf of Tenant or perform the work and in either case,
charge Tenant the cost thereof along with a reasonable amount for Landlord’s
overhead.

8.04      Tenant shall have access to the Building for Tenant and
its employees 24 hours per day/7 days per week, subject to the terms of this
Lease and such security or monitoring systems as Landlord may reasonably
impose, including, without limitation, sign-in procedures and/or presentation
of identification cards.

9.         Tenant
Improvements; Tenant Alterations; Mechanic’s Liens.

9.01      Any improvements to be constructed in the Premises by
Tenant prior to Tenant initially commencing use of the Premises are referred to
throughout this Lease as “Tenant Improvements.” All Tenant Improvements will be
performed in accordance with the terms and conditions outlined in Exhibit B and
also in accordance with the provisions set forth in this Lease, including this
Article 9 regarding Tenant Alterations,

 

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9.02      The following provisions apply to “Tenant Alterations”
which means and includes (a) any alterations, additions or improvements to the
Premises undertaken by or on behalf of Tenant, (b) any utility installations at
the Premises undertaken by Tenant, and (c) any repair, restoration,
replacement, or maintenance work at the Premises undertaken by or on behalf of
Tenant. Tenant shall not commence any Tenant Alteration without first obtaining
the prior written consent of Landlord in each instance.  Tenant shall submit
such information regarding the intended Tenant Alteration as Landlord may
reasonably require, and no request for consent shall be deemed complete until
such information is so delivered. The following provisions apply to all Tenant
Alterations: (i) Tenant shall hire a licensed general contractor approved by Landlord
who, in turn, shall hire only licensed subcontractors; (ii) Tenant shall obtain
all required permits and deliver a copy of the same to Landlord. Tenant shall
install all Tenant Alterations in strict compliance with all Laws, permits, any
plans approved by Landlord, and all conditions to Landlord’s approval; (iii)
Unless Landlord elects otherwise, Tenant shall remove each Tenant Alteration at
the end of this Lease or Tenant’s right of possession and restore the Premises
to its prior condition, all at Tenant’s sole expense; and (iv) Tenant shall
deliver to Landlord, within ten (10) days following installation of each Tenant
Alteration, (A) accurate, reproducible as-built plans, (B) proof of final
inspection and approval by all governmental authorities, (C) complete lien
waivers acceptable to Landlord for all costs of the Tenant Alteration, and (D)
a copy of a recorded notice of completion. Landlord’s approval of any Tenant
Improvements and Tenant Alterations and/or Landlord’s approval or designation of
any general contractor, subcontractor, supplier or other project participant
will not create any liability whatsoever on the part of Landlord. Tenant shall
reimburse Landlord for any sums paid by Landlord for third party examination of
Tenant’s plans for any Tenant Alterations and any other costs incurred by
Landlord in connection with such Tenant Alterations.

9.03      Tenant shall pay all costs of Tenant Alterations as and
when due.  Tenant shall not allow any lien to be filed. Tenant shall obtain
advance lien waivers and third-party beneficiary agreements from all
contractors, subcontractors, suppliers, and others providing equipment, labor,
materials, or services, in the form required by Landlord. If any lien is filed,
Tenant shall within 15 days remove such lien. In addition, if any such lien is
filed and not removed by Tenant as required hereunder, then, without waiver of
any other right or remedy, Landlord shall have the right to cause such lien to
be removed by any means allowed by Law. All reasonable sums expended by
Landlord in connection with such lien and/or its removal, including attorney
fees, shall be immediately due from Tenant to Landlord, together with interest
at the rate of 12% or the highest per annum rate of interest permitted from
time to time under applicable Law (whichever is less).

9.04      All Tenant Improvements and Tenant Alterations are part
of the realty and belong to Landlord. Tenant shall be solely responsible for
all taxes applicable to any Tenant Alterations, to insure all Tenant Alterations
and to restore the same following any casualty. At any time prior to the
expiration or earlier termination of this Lease, Landlord may require, upon 10
days’ prior written notice to Tenant, that Tenant remove all, or any part of
the Tenant Improvements and/or Tenant Alterations at its sole cost and expense
and repair any damage caused by such removal not later than the expiration or
earlier termination of this Lease. Notwithstanding the foregoing, Tenant shall
not be required to remove any portion of the Tenant Improvements shown on
Exhibit B hereto as of the date of this Lease. Notwithstanding anything to the
contrary contained herein, so long as Tenant’s written request for consent for
a proposed Tenant Alteration contains the following statement in large, bold
and capped font “PURSUANT TO ARTICLE 9 OF THE LEASE, IF LANDLORD CONSENTS TO
THE SUBJECT ALTERATION, LANDLORD SHALL NOTIFY TENANT IN WRITING WHETHER OR NOT
LANDLORD WILL REQUIRE SUCH ALTERATION TO BE REMOVED AT THE EXPIRATION OR
EARLIER TERMINATION OF THE LEASE.”, at the time Landlord gives its consent for
any Tenant Alterations, if it so does, Tenant shall also be notified whether or
not Landlord will require that such Tenant Alterations be removed upon the
expiration or earlier termination of this Lease. Notwithstanding anything to
the contrary contained in this Lease, at the expiration or earlier termination
of this Lease and otherwise in accordance with the terms and conditions of this
Lease, Tenant shall be required to remove all Tenant Alterations made to the
Premises except for any such Tenant Alterations which Landlord expressly
indicates or is deemed to have indicated shall not be required to be removed
from the Premises by Tenant.  If Tenant’s written notice strictly complies with
the foregoing and if Landlord fails to so notify Tenant whether Tenant shall be
required to remove the subject Tenant Alterations at the expiration or earlier
termination of this Lease, it shall be assumed that Landlord shall require the
removal of the subject Tenant Alterations. If Tenant fails to perform its
obligations in a timely manner, Landlord may perform such work at Tenant’s
expense. The provisions of this Article 9 shall survive the expiration or any
earlier termination of this Lease.

 

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10.        Repairs.

10.01    Subject to Section 10.02 below, Tenant shall, at all
times and at its sole cost and expense, keep all parts of the Premises
(including without limitation the Tenant Improvements and Tenant Alterations,
windows, glass and plate glass, doors (including, without limitation, overhead
and roll up doors), skylights, any special office entries, interior walls and
finish work, floors and floor coverings), interior and exterior, and all
equipment and facilities within or serving the Premises, in good order, condition
and repair regardless of whether the portion of the Premises requiring repairs,
or the means of repairing same, are reasonably or readily accessible, and
regardless of whether the need for such repairs or maintenance occurs as a
result of Tenant’s use, any prior use, vandalism, acts of third parties, Force
Majeure (as defined in Article 26 below) or the age of the Premises, reasonable
wear and tear excepted. The standard for comparison of condition will be the
condition of the Premises as of the original date of Landlord’s delivery of the
Premises to Tenant and failure to meet such standard shall create the need to
repair. If Tenant does not perform required maintenance or repairs, Landlord
shall have the right, without waiver of Default or of any other right or
remedy, to perform such obligations of Tenant on Tenant’s behalf, and Tenant
will reimburse Landlord for any costs incurred, together with an administrative
fee in an amount equal to 10% of the cost of the repairs, immediately upon
demand.

10.02    As the Premises constitute a portion of a multiple
occupancy Building, Landlord shall perform the repair and maintenance of the
roof, exterior walls, exterior areas, foundations and common sewage line
plumbing which are otherwise Tenant’s obligation under Section 10.01 above,
fire sprinkler system, Common Area fire alarm, utility systems serving the
Common Area, the Common Areas and any other maintenance and repair of exterior,
structural, and/or common elements which Landlord shall elect, and Tenant shall,
in lieu of the obligations set forth under Section 10.01 above with respect to
such items, be liable for its Proportionate Share of the expenses so incurred
by Landlord; provided, Tenant shall reimburse Landlord for 100% of any such
expense incurred by Landlord due to the act or omission of Tenant or any Tenant
Entity. Tenant expressly waives the benefit of any statute or other legal right
now or hereafter in effect which would otherwise afford Tenant the right to
make repairs at Landlord’s expense, whether by deduction of rent or otherwise,
or to terminate this Lease because of Landlord’s failure to keep the Property,
or any part thereof in good order, condition and repair.

11.        Insurance.

11.01    Tenant will not do or permit anything to be done within
or about the Premises or the Property which will increase the existing rate of
any insurance on any portion of the Property or cause the cancellation of any
insurance policy covering any portion of the Property (including, without
limitation, any liability coverage). Tenant will, at its sole cost and expense,
comply with any requirements of any insurer of Landlord. Tenant agrees to
maintain policies of insurance described in this Article. Landlord reserves the
right, from time to time, to require additional coverage (including, flood
insurance, if the Premises is located in a flood hazard zone), and/or to
require higher amounts of coverage. No insurance policy of Tenant shall have a
deductible greater than $5,000.00. Tenant shall maintain the following
insurance (“Tenant’s Insurance”): (a) Commercial General Liability Insurance
applicable to the Premises and its appurtenances providing, on an occurrence
basis, a minimum of $1,000,000.00, and not less than $2,000,000.00 in the
annual aggregate, covering third-party bodily injury, property damage, personal
injury and advertising injury, product/completed operations as applicable,
medical expenses and contractual liability. Defense costs will be in addition
to the limit of liability.  A combination of a General Liability policy and an
umbrella policy or excess liability policy may be used to satisfy this limit;
(b) Property/Business Interruption Insurance written on an All Risk or Special
Cause of Loss Form, including earthquake sprinkler leakage, at replacement cost
value and with a replacement cost endorsement covering all of Tenant’s business
and trade fixtures, equipment, movable partitions, furniture, merchandise and
other personal property within the Premises, including for which Tenant has
repair obligations and any Tenant Improvements and Tenant Alterations performed
by or for the benefit of Tenant, No coinsurance provision will apply; (c)
Excess Liability in the amount of $2,000,000.00; (d) Workers’ Compensation
Insurance in amounts not less than the amounts required by Law; (e) Employers
Liability Coverage of at least $1,000,000.00 per occurrence; (f) Automobile
Liability coverage of not less than $1,000,000.00 combined single limit
including property damage covering Tenant’s owned, non-owned and hired vehicles;
and (g) if Tenant uses any part of the Premises or Property to store or to
perform work on vehicles, Tenant shall maintain garage, liability insurance in
such form and amount as Landlord may require from time to time, but not less
than $2,000,000.00. Any company writing Tenant’s Insurance shall be licensed to
do business in the state in which the Premises is located and shall have an
A.M. Best rating of not less than A-VIII. Tenant will deliver to Landlord (and,
at Landlord’s request, to any Mortgagee (as defined in Article 25 below) or to
any other third party), simultaneously with its execution of this Lease and
thereafter at least 30 days prior to expiration, cancellation or change in
insurance, certificates acceptable to Landlord of insurance evidencing, at a
minimum, the coverage specified in this Section 11.01. All such certificates
shall be in form and substance satisfactory to Landlord, shall affirmatively
demonstrate all coverage and requirements set forth in this Lease, shall
contain no disclaimers of coverage, and shall include a firm and unconditional
obligation to give to Landlord at least 30 days’ prior written notice prior to
cancellation or change in any coverage. Tenant hereby assigns to Landlord all
its rights to receive any proceeds of such insurance policies attributable to
any Tenant Improvements and Tenant Alterations if this Lease is terminated due
to damage or destruction. Landlord and the Landlord Related Parties shall be
named additional insureds on Tenant’s insurance policies (excluding Workers’
Compensation Insurance); provided, however, that with respect to property
insurance covering any Tenant Improvements and Tenant Alterations, Landlord and
the Landlord Related Parties shall be loss payee thereunder (and the foregoing
designations shall be evidenced on the insurance certificates delivered to
Landlord as required hereby). All insurance to be carried by Tenant will be
primary to, and non-contributory with, Landlord’s insurance, and there will be
no exclusion for cross-liability endorsements and will in addition to the above
coverage specifically insure Landlord against any damage or loss that may
result either directly or indirectly from any default of Tenant under Article
13 (Hazardous Materials) herein, Any similar insurance carried by Landlord will
be non-contributory and considered excess insurance only.

 

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11.02    Tenant will name Landlord (and, at Landlord’s request,
any Mortgagee (as defined in Article 25 below) and Landlord’s agents as
additional insureds on all insurance policies required of Tenant under this
Lease, other than Worker’s Compensation, Employer’s Liability, and Fire and
Extended coverage (except on Tenant Improvements or Tenant Alterations to the
Premises for which Landlord shall be named loss payee) insuring Landlord and
such other additional insureds regardless of any defenses the insurer may have
against Tenant and regardless of whether the subject claim is also made against
Tenant. All insurance policies carried by Tenant will permit the insured, prior
to any loss, to agree with a third party to waive any claim it might have
against said third party without invalidating the coverage under the insurance
policy, and will release Landlord and the Landlord Related Parties (as defined
in Article 24 below), from any claims for damage to any person, to the Property
of which the Premises are a part, any existing improvements, Tenant
Improvements and Tenant Alterations to the Premises, and to any furniture,
fixtures, equipment, installations and any other personal property of Tenant
caused by or resulting from, risks which are to be insured against by Tenant
under this Lease, regardless of cause. The foregoing shall be evidenced in
Tenant’s certificate of insurance,

11.03    Landlord will secure and maintain insurance coverage in
such limits as Landlord may deem reasonable in its sole judgment to afford
Landlord adequate protection. The premiums for such coverage are “Insurance
Premiums” under Exhibit D to this Lease. Any proceeds of such insurance shall
be the sole property of Landlord to use as Landlord determines. Tenant will
provide, at its own expense, all insurance as Tenant deems adequate to protect
its interests.

11.04    Without limiting the effect of any other waiver of or
limitation on the liability of Landlord set forth herein, and except as
provided in Article 12 below, Landlord and Tenant hereby waive and shall cause
their respective insurance carriers to waive any and all rights of recovery,
claims, actions or causes of action against the other for any loss or damage with
respect to Tenant’s personal property, fixtures and equipment, any Tenant
Improvements or Tenant Alterations, the Building, the Premises, or any contents
thereof, including rights, claims, actions and causes of action based on
negligence, which loss or damage is (or would have been, had the insurance
required by this Lease been carried) covered by insurance. For the purposes of
this waiver, any deductible with respect to a party’s insurance shall be deemed
covered by and recoverable by such party under valid and collectable policies
of insurance. For purposes of this Section 11.04, “Landlord” shall include the
Landlord Related Parties.

11.05    Whenever Tenant shall undertake any alterations,
additions or improvements in, to or about the Premises, including, without
limitation, any Tenant Improvements and/or Tenant Alterations (“Work”) the
aforesaid insurance protection must extend to and include injuries to persons
and damage to property arising in connection with such Work, without limitation
including liability under any applicable structural work act, and such other
insurance as Landlord shall reasonably require; and the policies of or
certificates evidencing such insurance must be delivered to Landlord prior to
the commencement of any such Work.

 

 

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12.        Waiver of Claims; Indemnification. Except as may
otherwise be expressly provided in this Lease, Tenant waives all claims against
Landlord and the Landlord Related Parties for any damage to any property in or
about the Property, for any loss of business or income, and for injury to or
death of any persons, regardless of the cause of any such loss or event
(including negligence) or time of occurrence. Except to the extent caused by
the gross negligence or willful misconduct of Landlord, Tenant will indemnify,
protect, defend and hold harmless Landlord and the Landlord Related Parties
from and against all claims, losses, damages, causes of action, costs, expenses
and liabilities, including, legal fees, arising out of Tenant’s occupancy of
the Premises or presence on the Property, the conduct of Tenant’s business, any
default by Tenant, and/or any act, omission or neglect (including violations of
Law) of Tenant or its agents, contractors, employees, suppliers, licensees or
invitees, successors or assigns (each a “Tenant Entity” and collectively, the
“Tenant Entities”). Landlord shall indemnify and hold Tenant harmless from and
against any and all claims, liabilities, losses, costs, damages, injuries or
expenses, including reasonable attorneys’ and consultants’ fees and court
costs, demands, causes of action, or judgments to the extent arising out of or
relating to the gross negligence or willful misconduct of Landlord or
Landlord’s agents, employees or invitees (subject to the provisions of Section
11.04) However, notwithstanding anything to the contrary contained herein,
Landlord shall in no event be liable for (I) injury to Tenant’s business or any
loss of income or profit therefrom or for consequential damages or events of
Force Majeure (as defined in Article 26), or (ii) sums up to the amount of
insurance proceeds received by Tenant (or which would have been received by
Tenant under any insurance coverage required to be maintained by Tenant
hereunder) for any loss.  The foregoing indemnity by Landlord shall also not be
applicable to claims to the extent arising from the negligence or willful
misconduct of Tenant or any Tenant Entity. The provisions of this Article 12
shall survive the expiration or earlier termination of this Lease.

13.        Hazardous
Materials.

13.01    “Hazardous Materials” will mean any substance commonly
referred to, or defined in any Law, as a hazardous material or hazardous
substance (or other similar term), including but not be limited to, chemicals,
solvents, petroleum products, flammable materials, explosives, asbestos, urea
formaldehyde, PCB’s, chlorofluorocarbons, freon or radioactive materials.
Tenant will not cause or permit any Hazardous Materials to be brought upon,
kept, stored, discharged, released or used in, under or about any portion of
the Property by Tenant, or its agents without the prior written consent of
Landlord, which consent may be withheld or conditioned in Landlord’s sole
discretion; provided, Tenant may bring into the Premises small amounts of
Hazardous Materials (such as cleaning products and copy toner) which are
readily available to Tenant by unregulated retail purchase if the same are
necessary in Tenant’s normal business operations. If Tenant or any Tenant
Entity brings any Hazardous Materials to the Premises or Property, with or
without the prior written consent of Landlord (without waiver of the
requirement of prior written consent), and in executing this Lease Tenant
acknowledges and agrees that by its direct or indirect involvement in the
introduction of any Hazardous Materials to the Premises or Property, with or
without the consent of the Landlord, that Tenant accepts full and complete
responsibility for such Hazardous Materials and henceforth on will be
considered the Responsible Party as defined by any applicable governmental
authority and/or Law. Further, Tenant shall: (a) use such Hazardous Material
only as is reasonably necessary to Tenant’s business, in small, properly
labeled quantities; (b) handle, use, keep, store, and dispose of such Hazardous
Material using the highest accepted industry standards and in compliance with
all applicable Laws; (c) maintain at all times with Landlord a copy of the most
current MSDS sheet for each such Hazardous Material; and (d) comply with such
other reasonable rules and requirements Landlord may from time to time impose,
or with any definition of Hazardous Waste or Law as it may be implemented or
modified during or after the term of this Lease. Upon expiration or earlier
termination of this Lease, Tenant will, at Tenant’s sole cost and expense,
cause all Hazardous Materials brought to the Premises or the Property by Tenant
or any Tenant Entity, to be removed from the Property in compliance with any
and all applicable Laws. Notwithstanding the foregoing, Landlord shall be
responsible for Hazardous Materials which exist on, under or within the
Property or are located on the Property as of the date Landlord delivers
possession of the Premises to Tenant (“Pre-Existing Hazardous Materials”),
including without limitation the responsibility for removing, remediating or
otherwise mitigating the effects of such Hazardous Materials as may be required
by Laws to protect health and safety, or comply with the directions of
governmental agencies administering applicable environmental Laws. In addition,
Landlord shall comply with all Laws pertaining to and governing the existence,
removal, remediation, exposure to and use of Hazardous Materials by Landlord or
Landlord’s agents, contractors or employees at the Property; provided, however,
that nothing in this Section shall impose upon Landlord any responsibility for
the acts or omissions of tenants or any other third parties that occur
following the date Landlord delivers possession of the Premises to Tenant or
for any existing Hazardous Materials disturbed or exacerbated by Tenant or any
Tenant Entity.

 

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13.02    If Tenant or any Tenant Entity violates the provisions
of this Article 13, or perform any act or omission which contaminates or
expands the scope of contamination of the Premises, the Property, or any part
thereof, the underlying groundwater, or any property adjacent to the Property,
or violates or allegedly violates any applicable Law, then Tenant will
promptly, at Tenant’s expense, take all investigatory and/or remedial action
(collectively called “Remediation”), as directed or required by any
governmental authority that is necessary to fully clean up, remove and dispose
of such Hazardous Materials and any contamination so caused and shall do so in
compliance with any applicable Laws. Tenant will also repair any damage to the
Premises and any other affected portion(s) of the Property caused by such
contamination and Remediation.

13.03    Tenant shall immediately provide to Landlord written
notice of any investigation or claim arising out of the use by Tenant or any
Tenant Entity of Hazardous Materials at the Property or the violation of any
provision of this Article 13, or alleged violation of any Law and shall keep
Landlord fully advised regarding the same. Tenant shall provide to Landlord all
reports regarding the use of Hazardous Materials by Tenant or any Tenant Entity
at the Property and any incidents regarding the same, regardless of whether any
such documentation is considered by Tenant to be confidential. Landlord retains
the right to participate in any Remediation and/or legal actions affecting the
Property involving Hazardous Materials arising from Tenant’s actual or alleged
violation of any provision of this Article 13 or Law.

13.04    Tenant will indemnify, protect, defend and forever hold
Landlord, its lenders and ground lessor if any, the Landlord Related Parties,
the Premises, the Property, or any portion thereof, harmless from any and all
damages, causes of action, fines, losses, liabilities, judgments, penalties,
claims, and other costs, including, but not limited to, any Landlord Related
Parties’ costs incurred during its participation in any Remediation and/or
legal actions as specified in 13.03, to the extent arising out of any failure
of Tenant or Tenant Entity to observe any covenants of this Article 13.  All
provisions of this Article 13 shall survive the expiration of this Lease and
any termination of this Lease or of Tenant’s right of possession. Tenant shall
not be liable for any cost or expense related to removal, cleaning, abatement
or remediation of Hazardous Materials existing in the Premises prior to the
date Landlord tenders possession of the Premises to Tenant, including, without
limitation, Hazardous Materials in the ground water or soil, except to the
extent that any of the foregoing results directly or indirectly from any act or
omission by Tenant or any or any Hazardous Materials disturbed, distributed or
exacerbated by Tenant or any Tenant Entity.

13.05    As of the date hereof, to Landlord’s actual knowledge,
Landlord has not received written notice from any governmental agencies that
the Building is in violation of any Laws with respect to Hazardous Materials at
the Building or Property. For purposes of this Section, “Landlord’s actual
knowledge” shall be deemed to mean and limited to the current actual knowledge
of Coby Holley, Vice President, at the time of execution of this Lease and not
any implied, imputed, or constructive knowledge of said individual or of
Landlord or any Landlord Related Parties or any other party related to Landlord
and without any independent investigation or inquiry having been made or any
implied duty to investigate or make any inquiries; it being understood and
agreed that such individual shall have no personal liability in any manner
whatsoever hereunder or otherwise related to the transactions contemplated
hereby.

13.06    Landlord will indemnify and hold harmless Tenant from
and against any and all fines and reasonable costs and expenses (including
reasonable attorneys’ fees) that Tenant may incur due to (a) a clean up,
removal, remediation or other response required of Tenant by an appropriate
governmental authority to the extent of any Pre-Existing Hazardous Materials at
the Premises, or (b) any third party claims that are not insured or required to
be insured hereunder by Tenant to the extent resulting from a breach of
Landlord’s obligations pursuant to this Article 13 and/or from the
introduction, production, use, generation, storage, treatment, disposal,
discharge, release or other handling or disposition of any Hazardous Materials
on or about the Building and/or the Property by Landlord or its agents,
contractors or employees. However, this indemnity provision will not apply to
the acts and omissions of Tenant or any Tenant Entity, or any Hazardous Materials
introduced to, produced, stored or generated by Tenant or any Tenant Entity at
the Building, the Premises and/or the Property, or disturbed, distributed or
exacerbated by Tenant or any Tenant Entity.

 

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14.        Landlord’s Access. Landlord, its agents, contractors,
consultants and employees, will have the right to enter the Premises at any
time in the case of an emergency, and otherwise at reasonable times upon
reasonable notice to Tenant to examine the Premises, perform work in the
Premises, inspect any Tenant Alterations and/or any Tenant Improvements, show
the Premises to prospective Tenants (during the last nine months of the Term)
or to lenders, purchasers or other parties, to exercise any right or remedy, or
for any other purpose. If reasonably necessary, Landlord may temporarily close
all or a portion of the Premises to perform repairs, alterations and additions
and Tenant shall not have any right to terminate this Lease or abate rent or
assert a claim of partial or constructive eviction because of any such
closure.  For each of these purposes, Landlord will at all times have and
retain any necessary keys. Tenant will not alter any lock or install new or
additional locks or bolts on any door in or about the Premises without
obtaining Landlord’s prior written approval and will, in each event, furnish
Landlord with a new key. Access by Landlord will not give Tenant the right to
terminate this Lease, and will be without abatement of rent or liability on the
part of Landlord or any Landlord Related Parties. Notwithstanding the
foregoing, if Landlord temporarily closes the Premises in connection with any
such entry by Landlord, for a period in excess of 10 consecutive day(s),
Tenant, as its sole remedy, shall be entitled to receive a per diem abatement
of Base Rent during the period beginning on the 11th consecutive day of closure
and ending on the date on which the Premises are returned to Tenant in a
tenantable condition. Tenant, however, shall not be entitled to any abatement
if the work to be performed is required of Tenant under the terms of this Lease
or if the work to be performed or the inspection is required as a result of the
acts or omissions of Tenant or any Tenant Entity, including, without
limitation, a default by Tenant in its maintenance and repair obligations under
this Lease.

15.        Damage or
Destruction.

15.01    If the Premises is damaged or destroyed by fire or other
casualty, Tenant will immediately give written notice to Landlord of the
casualty. Landlord will have the right to terminate this Lease following a
casualty if any of the following occur: (a) insurance proceeds actually paid to
Landlord and available for use are not sufficient to pay the full cost to fully
repair the damage; (b) Landlord determines that the Premises or the Building
cannot be fully repaired within 180 days from the date restoration commences;
(c) the Premises are damaged or destroyed within the last 12 months of the
Term; (d) Tenant is in default of this Lease at the time of the casualty; (e)
Landlord would be required under this Lease to abate or reduce Tenant’s rent
for a period in excess of 6 months if the repairs were undertaken; or (f) the
Property, or the Building in which the Premises is located, is damaged such
that the cost of repair of the same would exceed 10% of the replacement cost of
the same. If Landlord elects to terminate this Lease, Landlord will be entitled
to retain all applicable Tenant insurance proceeds and Tenant shall assign or
endorse over to Landlord (or to any party designated by Landlord) all property
insurance proceeds payable to Tenant under Tenant’s insurance, excepting those
attributable to Tenant’s furniture, fixtures, equipment, and any other personal
property.

15.02    If this Lease is not terminated pursuant to Section
15.01, Landlord will repair the Premises and this Lease shall continue. The
repair obligation of Landlord shall be limited to repair of the Premises
excluding any Tenant Improvements, Tenant Alterations, and any personal
property and trade fixtures of Tenant. During the period of repair, rent will
be abated or reduced in proportion to the degree to which Tenant’s use of the
Premises is impaired, as determined by Landlord, not to exceed the total amount
of rent loss insurance proceeds, directly attributable to Tenant’s Premises, Landlord
has received. However, rent will not be abated if Tenant or any of its agents
is the cause of the casualty.

15.03    In addition to Landlord’s right to terminate as provided
herein, Tenant shall have the right to terminate this Lease if: (a) a substantial
portion of the Premises has been damaged by fire or other casualty and such
damage cannot reasonably be repaired (as reasonably determined by Landlord)
within 60 days after Landlord’s receipt of all required permits to restore the
Premises; (b) there is less than 1 year of the Term remaining on the date of
such casualty; (c) the casualty was not caused by the negligence or willful
misconduct of Tenant or its agents, employees or contractors; and (d) Tenant
provides Landlord with written notice of its intent to terminate within 30 days
after the date of the fire or other casualty.

16.        Assignment and
Subletting.

 

 

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16.01    Tenant will not, voluntarily or by operation of law,
assign, sell, convey, sublet or otherwise transfer all or any part of Tenant’s
right or interest in this Lease, or allow any other person or entity to occupy
or use all or any part of the Premises (collectively called “Transfer”) without
first obtaining the written consent of Landlord, which consent shall not be
unreasonably withheld. Any Transfer without the prior written consent of
Landlord shall be void. Without limiting the generality of the definition of
“Transfer,” it is agreed that each of the following shall be deemed a
“Transfer” for purposes of this Article 16: (a) an entity other than Tenant
becoming the tenant hereunder by merger, consolidation, or other
reorganization; and (b) a transfer of any ownership interest in Tenant (unless
Tenant is an entity whose stock is publicly traded). Tenant shall provide to
Landlord all information requested by Landlord concerning a Transfer. In no
event shall Tenant mortgage, encumber, pledge or assign for security purposes
all or any part of its interest in this Lease.  Regardless of whether consent
by Landlord is granted in connection with any Transfer, no Transfer shall
release Tenant from any obligation or liability hereunder; Tenant shall remain
primarily liable to pay all rent and other sums due hereunder to Landlord and
to perform all other obligations hereunder.  Similarly, no Transfer, with or
without the consent of Landlord, shall release any guarantor from its
obligations under its guaranty. Upon any assignment or sublease, any rights,
options or opportunities granted to Tenant hereunder to extend or renew the
Term, to shorten the Term, or to lease additional space shall be null and void.
A Transfer to an Affiliate (defined below) in accordance with the following
provisions of this Article 16 shall constitute a “Permitted Transfer”
hereunder. An “Affiliate” means any entity that (i) controls, is controlled by,
or is under common control with Tenant, (ii) results from the transfer of all
or substantially all of Tenant’s assets or stock, or (iii) results from the
merger or consolidation of Tenant with another entity. “Control” means the
direct or indirect ownership of more than 50% of the voting securities of an
entity or possession of the right to vote more than 50% of the voting interest
in the ordinary direction of the entity’s affairs. Notwithstanding anything to
the contrary contained in this Lease, Landlord’s consent is not required for
any assignment of this Lease or sublease of all or a portion of the Premises to
an Affiliate so long as the following conditions are met: (A) at least 30 days
before any such assignment or sublease, Landlord receives written notice of
such assignment or sublease (as well as any documents or information reasonably
requested by Landlord regarding the proposed Transfer and the transferee); (B)
Tenant is not in monetary or material non-monetary default under this Lease;
(C) if the Transfer is an assignment or any other Transfer to an Affiliate
other than a sublease, the intended assignee assumes in writing all of Tenant’s
obligations under this Lease relating to the Premises in form satisfactory to
Landlord or, if the Transfer is a sublease, the intended sublessee accepts the
sublease in form satisfactory to Landlord; (D) the intended transferee has a
tangible net worth, as evidenced by financial statements delivered to Landlord
and certified by an independent certified public accountant in accordance with
generally accepted accounting principles that are consistently applied, at
least equal to the greater of Tenant’s net worth at the date of this Lease or
Tenant’s net worth as of the day prior to the proposed Transfer; (E) the
Premises shall continue to be operated solely for the Permitted Use; and (F)
Tenant shall pay to Landlord the fee set forth above for approving assignments
and subleases and all costs reasonably incurred by Landlord or any Mortgagee
(as defined in Article 25 of this Lease) for such assignment or subletting,
including, without limitation, reasonable attorneys’ fees. No Transfer to an
Affiliate in accordance with this subparagraph shall relieve the Tenant named
herein of any obligation under this Lease or alter the primary liability of
Tenant named herein for the payment of rent or for the performance of any other
obligation to be performed by Tenant, including the obligations of any
guarantor.

16.02    In the event Landlord consents to a Transfer, the
Transfer will not be effective until Landlord receives a fully executed
agreement regarding the Transfer, in a form and of substance acceptable to
Landlord, any documents or information required by such agreement (including
any estoppel certificate and any subordination agreement required by any lender
of Landlord), an amount equal to all reasonable attorneys’ fees incurred by
Landlord (regardless of whether such consent is granted and regardless of
whether the Transfer is consummated) and other reasonable expenses of Landlord
incurred in connection with the Transfer, and a Transfer fee in the amount of
$250.00.

16.03    Any consideration paid to Tenant for assignment of this
Lease, less any reasonable brokerage commissions, legal fees and construction
costs paid by Tenant with respect to such assignment, shall be immediately paid
to Landlord. In the event of a sublease of all or a portion of the Premises,
all rents payable by the subtenant in excess of rents payable hereunder
(allocated on a per square foot basis in the event of a partial sublease) shall
be immediately due and payable to Landlord; provided, excess rental shall be
calculated taking into account straight-line amortization, without interest, of
any reasonable brokerage commissions, legal fees and construction costs paid by
Tenant in connection with the subject sublease transaction.

16.04    Intentionally Omitted.]

16.05    Upon the occurrence of a Default, if the Premises or any
portion thereof are sublet, Landlord may, at its option and in addition and
without prejudice to any other remedies herein provided or provided by Law,
collect directly from the sublessee(s) all rentals becoming due Tenant and
apply such rentals against other sums due hereunder to Landlord.

17.        Default.

Time is of the essence in the performance of all covenants of
Tenant. A “Default” is defined as a failure by the Tenant to comply with or
perform any of the terms, covenants, conditions or Rules and Regulations under
this Lease, including, without limitation, the following:

 

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17.01    Tenant’s failure to make any payment of Base Rent,
Additional Rent or any other amount due and payable hereunder when said payment
is due, such failure continuing for 5 days after written notice of such
failure, as to which time is of the essence, provided that Landlord shall not
be required to provide such notice more than twice during the 12 month period
commencing with the date of the first such notice. The third failure to pay any
such amount within 5 days after said payment is due during such 12-month period
shall be a Default hereunder without notice. Such notice shall replace rather
than supplement any required statutory notice.

17.02    Landlord discovers that any representation or warranty
made by Tenant or any guarantor was materially false when made or that any
financial statement of Tenant or of any guarantor of this Lease given to
Landlord was materially false.

17.03    Tenant makes any general arrangement or assignment for
the benefit of creditors, becomes a “debtor” in a bankruptcy proceeding, is unable
to pay its debts or obligations as they occur, or has an attachment, execution
or other seizure of substantially all of its assets located at the Property or
its interest in this Lease, or any guarantor becomes insolvent, becomes a
“debtor” in a bankruptcy proceeding, fails to perform any obligation under its
guaranty, or attempts to revoke its guaranty.

17.04    Tenant shall fail to comply with any term, provision or
covenant of this Lease other than as specified above in this Article 17 and
shall not cure such failure as soon as reasonably possible, but in any event
within twenty (20) days (forthwith, if the failure involves a hazardous
condition) after written notice of such failure to Tenant provided, however,
that such failure shall not be an event of default if such failure could not
reasonably be cured during such twenty (20) day period, but Tenant has
commenced the cure within such twenty (20) day period and thereafter is
diligently pursuing such cure to completion, provided that the total aggregate cure
period shall not exceed sixty (60) days. Notwithstanding the foregoing, if
Tenant fails to comply with any term, provision or covenant of this Lease more
than once during the Term, any subsequent failure to comply with the same term,
provision or covenant shall be deemed an event of default if Tenant fails to
cure such default within five (5) business days after written notice (rather
than the twenty (20) day period provided immediately above); provided, however,
that if such failure shall not be an event of default if such failure cannot
reasonably be cured during such five (5) business day period, if Tenant has
commenced the cure within such five (5) business day period and thereafter is
diligently pursuing such cure to completion, but the total aggregate cure
period shall not exceed sixty (60) days. The foregoing Tenant cure periods
shall in no event apply to any of the following: Tenant’s (i) failure to
provide an estoppel certificate when and as required under Section 20 of this
Lease, which failure is not cured within 5 days following written notice; (ii)
failure to maintain insurance required under Article 11 of the Lease; (iii)
failure to vacate the Premises upon the expiration or earlier termination of
the Lease; (iv) failure to comply with any obligation under the Lease
pertaining to Hazardous Materials; (v) failure to provide a subordination
agreement when and as required under Section 25 of this Lease, which failure is
not cured within 5 days following written notice; (vi) any other matter provided
for in another subparagraph of this Article 17 for which another time limit is
provided elsewhere in the Lease.

18.        Remedies of
Landlord.

18.01    If Tenant fails to perform any duty or obligation of
Tenant under this Lease, Landlord may at its option, without waiver of Default
nor any other right or remedy, perform any such duty or obligation on Tenant’s
behalf. The costs and expenses of any such performance by Landlord will be
immediately due and payable by Tenant upon receipt from Landlord of the reimbursement
amount required.

18.02    Upon a Default, with or without notice or demand, and
without limiting any other of Landlord’s rights or remedies, Landlord may:

(a)           Terminate this Lease, in which case Tenant
shall immediately surrender the Premises to Landlord. If Tenant fails to
surrender the Premises, Landlord, in compliance with Law, may enter upon and
take possession of the Premises and remove Tenant, Tenant’s Property and any
party occupying the Premises. Tenant shall pay Landlord, on demand, all past due
Rent and other losses and damages Landlord suffers as a result of Tenant’s
Default, including, without limitation, all Costs of Reletting (defined below)
and any deficiency that may arise from reletting or the failure to relet the
Premises. “Costs of Reletting” shall include all reasonable costs and expenses
incurred by Landlord in reletting or attempting to relet the Premises,
including, without limitation, legal fees, brokerage commissions, the cost of
alterations and the value of other concessions or allowances granted to a new
tenant.

 

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(b)           Terminate Tenant’s right to possession of
the Premises and, in compliance with Law, remove Tenant, Tenant’s Property and
any parties occupying the Premises. Landlord may (but shall not be obligated
to) relet all or any part of the Premises, without notice to Tenant, for such
period of time and on such terms and conditions (which may include concessions,
free rent and work allowances) as Landlord in its absolute discretion shall
determine. Landlord may collect and receive all rents and other income from the
reletting. Tenant shall pay Landlord on demand all past due Rent, all Costs of
Reletting and any deficiency arising from the reletting or failure to relet the
Premises.  The re-entry or taking of possession of the Premises shall not be
construed as an election by Landlord to terminate this Lease

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

18.03    In lieu of calculating damages under Section 18.02,
Landlord may elect to receive as damages the sum of (a) all rent accrued
through the date of termination of this Lease or Tenant’s right to possession,
and (b) an amount equal to the total rent that Tenant would have been required
to pay for the remainder of the Term discounted to present value at the Prime
Rate (defined below) then in effect, minus the then present fair rental value
of the Premises for the remainder of the Term, similarly discounted, after
deducting all anticipated Costs of Reletting. “Prime Rate” shall be the per
annum interest rate publicly announced as its prime or base rate by a federally
insured bank selected by Landlord in the state in which the Building is
located.

18,04    If Tenant is in Default of any of its non-monetary
obligations under this Lease, Landlord shall have the right to perform such
obligations. Tenant shall reimburse Landlord for the cost of such performance
upon demand together with an administrative charge equal to 10°A of the cost of
the work performed by Landlord.  The repossession or re-entering of all or any
part of the Premises shall not relieve Tenant of its liabilities and
obligations under this Lease.  No right or remedy conferred upon or reserved to
Landlord in this Lease is intended to be exclusive of any right or remedy
granted to Landlord by statute or common law, and each and every such right and
remedy will be cumulative and in addition to any other right and remedy now or
subsequently available to Landlord at Law or in equity.

18.05    In the event of Default, Landlord agrees to use
reasonable efforts to mitigate damages, provided that those efforts shall not
require Landlord to relet the Premises in preference to any other space in the
Building or to relet the Premises to any party that Landlord could reasonably
reject as a transferee pursuant to Article 16.

19.        Condemnation. If the Premises or any portion
thereof are taken under the power of eminent domain or sold under the threat of
the exercise of said power (collectively, “Condemnation”), this Lease shall
terminate as to the part taken as of the date the condemning authority takes
title or possession, whichever first occurs. If all or a material portion of
the rentable area of the Premises are taken by Condemnation, Tenant may, at
Tenant’s option, to be exercised in writing within 15 days after Landlord shall
have given Tenant written notice of such taking (or in the absence of such
notice, within 15 days after the condemning authority shall have taken
possession) terminate this Lease as of the date the condemning authority takes
such possession.  Landlord shall also have the right to terminate this Lease if
there is a taking by Condemnation of any portion of the Building or Property
which would have a material adverse effect on Landlord’s ability to profitably
operate the remainder of the Building. lf neither party terminates this Lease
in accordance with the foregoing, this Lease shall remain in full force and
effect as to the portion of the Premises remaining, except that the Base Rent
shall be reduced in proportion to the reduction in utility of the Premises
caused by such Condemnation. Condemnation awards and/or payments shall be the
property of Landlord, whether such award shall be made as compensation for
diminution in value of the leasehold, the value of the part taken or for
severance damages. Notwithstanding anything to the contrary in this Article 19,
Tenant shall have the right to claim separately from the condemning authority
such compensation as may be recoverable by Tenant in its own right for the
amortized value of leasehold improvements paid for solely by Tenant (except for
those Tenant Alterations or Tenant Improvements approved by Landlord and which
will become the property of Landlord upon the expiration or termination of this
Lease), for Tenant’s personal property and trade fixtures, and for relocation
and restoration costs incurred by Tenant, so long as it does not prejudice or
reduce Landlord’s claim against or award from the condemning authority.

20.        Estoppel
Certificates; Financial Statements.

 

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20.01    Tenant will execute and deliver to Landlord, within 10
days after written request from Landlord, a commercially reasonable estoppel
certificate to those parties as are reasonably requested by Landlord (including
a Mortgagee or prospective purchaser). Without limitation, such estoppel
certificate may include a certification as to the status of this Lease, the
existence of any default and the amount of rent that is due and payable. Any
such estoppel certificate may be relied upon by Landlord and by any actual or
prospective buyer or lender of the Property and any other third party
designated by Landlord, If Tenant fails to execute and deliver such estoppel
certificate within such 10 day period, such estoppel certificate shall be
binding on Tenant as prepared.

20.02    Within 10 days after written request from Landlord,
Tenant shall deliver to Landlord such financial statements as Landlord
reasonably requests regarding Tenant or any assignee, subtenant, or guarantor
of Tenant. Tenant represents and warrants to Landlord that each financial
statement is a true and accurate statement in all material respects. At
Tenant’s request, Landlord shall enter into Landlord’s standard form of
confidentiality agreement with Tenant covering confidential financial
information provided by Tenant to Landlord.

21.        Notices. All communications and notices required
under this Lease shall be in writing and shall be addressed to the respective
address of the receiving party. All notices to Tenant shall be given by
reputable overnight courier, U. S. registered or certified mail (return receipt
required, postage prepaid), or hand delivery, and shall be deemed received on
the date of delivery (or attempted delivery) as evidenced by return receipt. Any
notice to Tenant may also be given by posting at the Premises in accordance
with the requirements of applicable Laws and shall be effective upon such
posting.  At any time during the Term, Landlord or Tenant may specify a
different Notice Address (excluding post office boxes) by providing written
notification to the other,

22.        Holdover. If Tenant remains in possession of all
or any part of the Premises with Landlord’s prior written consent after the
expiration or termination of this Lease or of Tenant’s right to possession,
such possession will constitute a month-to-month tenancy which may be
terminated by either Landlord or Tenant upon 30 days written notice and will
not constitute a renewal or extension of the Term.  If Tenant fails to
surrender all or any part of the Premises at the termination of this Lease,
occupancy of the Premises after termination shall be that of a tenancy at
sufferance. Tenant’s occupancy shall be subject to all the terms and provisions
of this Lease, and during the first 3 months of any such holdover, Tenant shall
pay an amount equal to the sum of 150% of the Base Rent and 100% of the
Additional Rent due for the period immediately preceding the holdover,
calculated and payable on a per calendar month basis without reduction for partial
calendar months. Thereafter, commencing on the first day of the fourth month of
any such holdover, Tenant shall pay an amount (on a per calendar month basis
without reduction for partial calendar months during the remainder of the
holdover) equal to the sum of 200% of the Base Rent and 100% of the Additional
Rent due for the period immediately preceding the holdover. No holdover by
Tenant or payment by Tenant after the termination of this Lease shall be
construed to extend the Term or prevent Landlord from immediate recovery of
possession of the Premises by summary proceedings or otherwise. If Landlord is
unable to deliver possession of the Premises to a new tenant or to perform
improvements for a new tenant as a result of Tenant’s holdover, Tenant shall be
liable for all damages (including, without limitation, consequential, indirect
and special) that Landlord suffers from the holdover.

23.        Relocation of the
Premises. [Intentionally Omitted.]

24.        Limitation of Liability. NOTWITHSTANDING ANYTHING
TO THE CONTRARY CONTAINED IN THIS LEASE, THE LIABILITY OF LANDLORD (AND OF ANY
SUCCESSOR LANDLORD) SHALL BE LIMITED TO THE LESSER OF (A) THE INTEREST OF
LANDLORD IN THE PROPERTY, OR (B) THE EQUITY INTEREST LANDLORD WOULD HAVE IN THE
PROPERTY IF THE PROPERTY WERE ENCUMBERED BY THIRD PARTY DEBT IN AN AMOUNT EQUAL
TO 80% OF THE VALUE OF THE PROPERTY (CALCULATIONS OF EQUITY SHALL BE MADE AS OF
THE INITIAL DATE TENANT NOTIFIES LANDLORD OF THE ACTUAL OR ALLEGED DEFAULT OR
OTHER CLAIM). TENANT SHALL LOOK SOLELY TO LANDLORD’S INTEREST IN THE PROPERTY
FOR THE RECOVERY OF ANY JUDGMENT OR AWARD AGAINST LANDLORD OR ANY OF LANDLORD’S
TRUSTEES, MEMBERS, PRINCIPALS, BENEFICIARIES, PARTNERS, OFFICERS, DIRECTORS,
EMPLOYEES, MORTGAGEES (AS DEFINED IN ARTICLE 26 BELOW) OR OTHER SECURED PARTIES
AND AGENTS (EACH A “LANDLORD RELATED PARTY”). NEITHER LANDLORD NOR ANY LANDLORD
RELATED PARTY SHALL BE PERSONALLY LIABLE FOR ANY JUDGMENT OR DEFICIENCY, AND IN
NO EVENT SHALL LANDLORD OR ANY LANDLORD RELATED PARTY BE LIABLE TO TENANT FOR
ANY LOST PROFIT, DAMAGE TO OR LOSS OF BUSINESS OR ANY FORM OF SPECIAL, INDIRECT
OR CONSEQUENTIAL DAMAGE. BEFORE FILING SUIT FOR AN ALLEGED DEFAULT BY LANDLORD,
TENANT SHALL GIVE LANDLORD AND ANY MORTGAGEE(S) WHOM TENANT HAS BEEN NOTIFIED
HOLD MORTGAGES OR OTHER ENCUMBRANCES ON THE PROPERTY, NOTICE AND REASONABLE
TIME TO CURE THE ALLEGED DEFAULT, FOR PURPOSES HEREOF, “INTEREST OF LANDLORD IN
THE PROPERTY” SHALL INCLUDE PROCEEDS FROM THE ARMS-LENGTH SALE OF THE PROPERTY
TO A THIRD PARTY (LESS ANY SUMS PAYABLE TO SATISFY ANY MORTGAGES OR OTHER LIENS
AGAINST THE PROPERTY), RENTS DUE FROM TENANTS, INSURANCE PROCEEDS AND PROCEEDS
FROM CONDEMNATION OR EMINENT DOMAIN PROCEEDINGS (PRIOR TO THE DISTRIBUTION OF
SAME TO ANY PARTNER OR SHAREHOLDER OF LANDLORD OR ANY OTHER THIRD PARTY).

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25.        Subordination. Tenant accepts this Lease subject
and subordinate to any mortgage(s), deed(s) of trust, ground lease(s) or other
lien(s) now or subsequently arising upon the Premises, the Building or the
Property, and to renewals, modifications, refinancings and extensions thereof
(collectively referred to as a “Mortgage”). The party having the benefit of a
Mortgage shall be referred to as a “Mortgagee”, This clause shall be
self-operative, but upon request from a Mortgagee, Tenant shall, within ten
(10) days of request therefor, execute a commercially reasonable subordination
agreement in favor of the Mortgagee. As an alternative, a Mortgagee shall have
the right at any time to subordinate its Mortgage to this Lease. Upon request,
Tenant, without charge, shall attorn to any successor to Landlord’s interest in
this Lease. Notwithstanding the foregoing, upon written request by Tenant,
Landlord will use reasonable efforts to obtain a non-disturbance, subordination
and attornment agreement from Landlord’s then current Mortgagee on such
Mortgagee’s then current standard form of agreement.  “Reasonable efforts” of
Landlord shall not require Landlord to incur any cost, expense or liability to
obtain such agreement, it being agreed that Tenant shall be responsible for any
fee or review costs charged by the Mortgagee. Upon request of Landlord, Tenant
will execute the Mortgagee’s form of non-disturbance, subordination and
attornment agreement and return the same to Landlord for execution by the
Mortgagee. Landlord’s failure to obtain a non-disturbance, subordination and
attornment agreement for Tenant shall have no effect on the rights, obligations
and liabilities of Landlord and Tenant or be considered to be a default by
Landlord hereunder.

26.        Force Majeure. Whenever a period of time is
prescribed for the taking of an action by Landlord or Tenant (other than the
payment of the Security Deposit or rent), the period of time for the
performance of such action shall be extended by the number of days that the performance
is actually delayed due to strikes, acts of God, shortages of labor or
materials, war, terrorist acts, civil disturbances and other causes beyond the
reasonable control of the performing party (“Force Majeure”).

27.        Miscellaneous
Provisions.

27.01    Whenever the context of this Lease requires, the word
“person” shall include any entity, and the singular shall include the plural
and the plural shall include the singular. If more than one person or entity is
Tenant, the obligations of each such person or entity under this Lease will be
joint and several. The terms, conditions and provisions of this Lease will
apply to and bind the heirs, successors, executors, administrators and assigns
of Landlord and Tenant. No remedy or election hereunder shall be deemed
exclusive but shall, whenever possible, be cumulative with all other remedies
at law or in equity. Time is of the essence for the performance of each term,
condition and covenant of this Lease.

27.02    The captions and headings of this Lease are used for the
purpose of convenience only. This Lease contains all of the agreements and
conditions made between Landlord and Tenant and may not be modified in any
manner other than by a written agreement signed by both Landlord and Tenant.
Any statements, promises, agreements, warranties or representations, whether
oral or written, not expressly contained herein will in no way bind Landlord
and Tenant expressly waives all claims for damages by reason of any statements,
promises, agreements, warranties or representations, if any, not contained in
this Lease. No provision of this Lease shall be deemed to have been waived by
Landlord unless such waiver is in writing signed by a regional vice president
or higher title of Landlord or of Landlord’s management company, and no custom
or practice which may develop between the parties during the Term shall waive
or diminish the Landlord’s right to enforce strict performance by Tenant of any
terms of this Lease. Additionally, regardless of Landlord’s knowledge of a
default at the time of such acceptance, the acceptance of rent or any other
payment by Landlord will not constitute a waiver by Landlord of any default by
Tenant. This Lease is governed and construed in accordance with the laws of the
state in which the Premises are located, and venue of any legal action will be
in the county where the Premises are located.

 

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27.03    This Lease has been fully reviewed by both parties and
shall not be strictly or adversely construed against the drafter. If any
provision contained herein is determined to be invalid, illegal or
unenforceable in any respect, then (a) such provision shall be enforced to the
fullest extent allowed, and (b) such invalidity, illegality, or
unenforceability will not affect any other provision of this Lease.

27.04    Except as required under Articles 20 and/or 25 of this
Lease, Tenant hereby agrees not to disclose any terms of this Lease without the
prior written consent of Landlord. Tenant shall not record this Lease or any
short form memorandum hereof.

27.05    All obligations of Tenant under this Lease not fully
performed as of the expiration or earlier termination of the Term shall survive
the expiration or earlier termination of this Lease.

27.06    Landlord and Tenant each warrant to the other that it
has not dealt with any broker or agent in connection with this Lease, other
than the person(s) listed in the Basic Lease Information. Landlord and Tenant
each agree to indemnify the other against all costs, expenses, legal fees and
other liability for commissions or other compensation claimed by any other
broker or agent by reason of the act or agreement of the indemnifying party.
The provisions of this Section 27.06 shall survive the expiration or earlier
termination of this Lease.

27.07    The grant of any consent or approval required from
Landlord under this Lease shall be proved only by proof of a written document
signed and delivered by Landlord expressly setting forth such consent or
approval. Unless otherwise specified herein, any such consent or approval may
be withheld in Landlord’s sole discretion. Notwithstanding any other provision
of this Lease, the sole and exclusive remedy of Tenant for any alleged or
actual improper withholding, delaying or conditioning of any consent or
approval by Landlord shall be the right to specifically enforce any right of
Tenant to require issuance of such consent or approval on conditions allowed by
this Lease,

27.08    Tenant agrees to abide by, keep and observe, and shall
cause its employees, suppliers, shippers, customers, agents, contractors and
invitees to so abide by, keep and observe, all Rules and Regulations set forth
in Exhibit C (the “Rules and Regulations”) and all additions and amendments to
the same of which Landlord provides written notice to Tenant. Landlord will not
be responsible to Tenant for any nonperformance by any other tenant, occupant
or invitee of the Property of any said Rules and Regulations. If there is a
conflict between this Lease and any rules and regulations enacted after the
date of this Lease, the terms of this Lease shall control,

27.09    Tenant will not place any signage on or about the
Property, or on any part thereof, without the prior written consent of Landlord
which Landlord may withhold or condition in its sole discretion.
Notwithstanding the foregoing, Tenant shall be allowed to have standard
monument and suite signage, subject to all applicable Laws, in a location
mutually agreeable to Landlord and Tenant at Tenant’s sole cost, All Tenant
signage will comply with the terms and conditions of this Lease, the all
applicable Laws, and sign criteria for the Building as promulgated by Landlord
from time to time and the Rules and Regulations and/or other criteria which
Landlord may establish from time to time. Landlord shall provide directory
signage within the Project at Landlord’s sole cost.

27.10    If, on account of any breach or default by Tenant in
Tenant’s obligations under the terms and conditions of this Lease, it shall
become necessary or appropriate for Landlord to employ or consult with an
attorney or collection agency concerning or to enforce or defend any of
Landlord’s rights or remedies arising under this Lease or to collect any sums
due from Tenant, Tenant agrees to pay all costs and fees so incurred by
Landlord, including, without limitation, reasonable attorneys’ fees and costs.
If either party institutes a suit against the other for violation of or to
enforce any covenant, term or condition of this Lease, the prevailing party
shall be entitled to reimbursement of all of its costs and expenses, including,
without limitation, reasonable attorneys’ fees.

27.11    Tenant represents and warrants to Landlord that each
individual executing this Lease on behalf of Tenant is authorized to do so on
behalf of Tenant and that Tenant is not, and the entities or individuals
constituting Tenant or which may own or control Tenant or which may be owned or
controlled by Tenant are not, (i) in violation of any laws relating to
terrorism or money laundering, or (ii) among the individuals or entities
identified on any list compiled pursuant to Executive Order 13224 for the
purpose of identifying suspected terrorists or on the most current list
published by the U.S. Treasury Department Office of Foreign Assets Control at
its official website, http://www.treas.gov/ofac/tllsdn.pdf or any replacement
website or other replacement official publication of such list.

 

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27.12    Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE
PROPERTY OR ARISING OUT OF THIS LEASE.

27.13    Solely for the purpose of effectuating Tenant’s
indemnification obligations under this Lease, and not the benefit of any third
parties (including but not limited to employees of Tenant), Tenant specifically
and expressly waives any immunity that it may be granted under applicable
federal, state or local Worker Compensation Acts, Disability Benefit Acts or
other employee benefit acts. Furthermore, the indemnification obligations under
this Lease shall not be limited in any way by any limitation on the amount or
type of damages, compensation or benefits payable to or for any third party
under Worker Compensation Acts, Disability Benefit Acts or other employee
benefit acts. The parties acknowledge that the foregoing provisions of this
Section have been specifically and mutually negotiated between the parties.

27.14    Landlord represents and warrants that it has full right
and authority to enter into this Lease and to perform all of Landlord’s
obligations hereunder and that all persons signing this Lease on its behalf are
authorized to do so.

28.        Additional
Provisions.

28.1      Option To Renew.

(a)        Provided this Lease is in full force and effect and
Tenant is not in monetary or material non-monetary default under any of the
other terms and conditions of this Lease at the time of notification or
commencement, Tenant shall have one (1) option to renew (the “Renewal Option”)
the Term of this Lease for a term of five (5) years (the “Renewal Term”), for
the portion of the Premises being leased by Tenant as of the date the Renewal
Term is to commence, on the same terms and conditions set forth in this Lease,
except as modified by the terms, covenants and conditions as set forth below:

(i)            If Tenant elects to exercise the Renewal Option,
then Tenant shall provide Landlord with written notice no earlier than the date
which is 180 days prior to the expiration of the initial Term of this Lease but
no later than the date which is 60 days prior to the expiration of the initial
Term of this Lease. If Tenant fails to provide such notice, Tenant shall have
no further or additional right to extend or renew the Term of this Lease.

(ii)           The Base Rent in effect at the expiration of the
then current Term of this Lease shall be changed to reflect the Prevailing
Market (as defined in Section 28.1(d) below) rate. Landlord shall advise Tenant
of the new Base Rent for the Premises no later than 30 days after receipt of
Tenant’s written request therefor. Said request shall be made no earlier than
30 days prior to the first date on which Tenant may exercise its Renewal Option
under this Section 28.1.  Said notification of the new Base Rent may include a
provision for its escalation to provide for a change in the Prevailing Market
rate between the time of notification and the commencement of the Renewal Term.

(iii)          If Tenant and Landlord are unable to agree on a
mutually acceptable rental rate for the Renewal Term not later than 60 days
prior to the expiration of the then current Term, then Landlord and Tenant,
within 5 days after such date, shall each simultaneously submit to the other,
in a sealed envelope, its good faith estimate of the Prevailing Market rate for
the Premises during the Renewal Term (collectively referred to as the
“Estimates”). If the higher of such Estimates is not more than 105% of the
lower of such Estimates, then the Prevailing Market rate shall be the average
of the two Estimates. If the Prevailing Market rate is not established by the
exchange of Estimates, then, within 7 days after the exchange of Estimates,
Landlord and Tenant shall each select an appraiser to determine which of the
two Estimates most closely reflects the Prevailing Market rate for the Premises
during the Renewal Term. Each appraiser so selected shall be certified as an
MAI appraiser or as an ASA appraiser and shall have had at least 5 years
experience within the previous 10 years as a real estate appraiser working in
Beaverton, Oregon, with working knowledge of current rental rates and
practices. For purposes hereof, an “MAI” appraiser means an individual who
holds an MAI designation conferred by, and is an independent member of, the
American Institute of Real Estate Appraisers (or its successor organization, or
in the event there is no successor organization, the organization and
designation most similar), and an “ASA” appraiser means an individual who holds
the Senior Member designation conferred by, and is an independent member of,
the American Society of Appraisers (or its successor organization, or, in the
event there is no successor organization, the organization and designation most
similar).

 

 

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(iv)          Upon selection, Landlord’s and Tenant’s appraisers
shall work together in good faith to agree upon which of the two Estimates most
closely reflects the Prevailing Market rate for the Premises. The Estimate
chosen by such appraisers shall be binding on both Landlord and Tenant, If
either Landlord or Tenant fails to appoint an appraiser within the 7 day period
referred to above, the appraiser appointed by the other party shall be the sole
appraiser for the purposes hereof, If the two appraisers cannot agree upon
which of the two Estimates most closely reflects the Prevailing Market rate
within 20 days after their appointment, then, within 10 days after the
expiration of such 20 day period, the two appraisers shall select a third
appraiser meeting the aforementioned criteria. Once the third appraiser (i.e.,
the arbitrator) has been selected as provided for above, then, as soon
thereafter as practicable but in any case within 14 days, the arbitrator shall
make his or her determination of which of the two Estimates most closely
reflects the Prevailing Market rate and such Estimate shall be binding on both
Landlord and Tenant as the Prevailing Market rate for the Premises. If the
arbitrator believes that expert advice would materially assist him or her, he
or she may retain one or more qualified persons to provide such expert advice.
The parties shall share equally in the costs of the arbitrator and of any
experts retained by the arbitrator. Any fees of any appraiser, counsel or
experts engaged directly by Landlord or Tenant, however, shall be borne by the
party retaining such appraiser, counsel or expert.

(v)           If the Prevailing Market rate has not been
determined by the commencement date of the Renewal Term, Tenant shall pay Base
Rent upon the terms and conditions in effect during the last month of the
initial Term until such time as the Prevailing Market rate has been determined.
Upon such determination, the Base Rent for the Premises shall be retroactively
adjusted to the commencement of such Renewal Term for the Premises.

(b)        If Tenant is entitled to and properly exercises its
Renewal Option, Landlord shall prepare an amendment (the “Renewal Amendment”)
to reflect changes in the Base Rent, Term, Termination Date and other
appropriate terms. Tenant shall execute and return the Renewal Amendment to
Landlord within 15 days after Tenant’s receipt of same, but an otherwise valid
exercise of the Renewal Option shall be fully effective whether or not the
Renewal Amendment is executed.

(c)        Except with respect to a Permitted Transfer, the
Renewal Option is not transferable; the parties hereto acknowledge and agree
that they intend that the Renewal Option shall be “personal” to Tenant as set
forth above and that in no event will any assignee or sublessee have any rights
to exercise the Renewal Option.  If the Renewal Option is validly exercised or
if Tenant fails to validly exercise the Renewal Option, Tenant shall have no
further right to extend the Term of this Lease.

(d)        For purposes of this Renewal Option, “Prevailing
Market” shall mean the arms length fair market annual rental rate per rentable
square foot under leases and renewal and expansion amendments entered into on
or about the date on which the Prevailing Market is being determined hereunder
for space comparable to the Premises in the Building and buildings comparable
to the Building in the 158th Avenue district of the Beaverton, Oregon area as
of the date the Renewal Term is to commence, taking into account the specific
provisions of this Lease which will remain constant, and may, if applicable,
include parking charges. The determination of Prevailing Market shall take into
account any material economic differences between the terms of this Lease and
any comparison lease or amendment, such as rent abatements, construction costs
and other concessions and the manner, if any, in which the landlord under any
such lease is reimbursed for operating expenses and taxes,

(e)        Notwithstanding anything herein to the contrary, the Renewal
Option is subject and subordinate to the expansion rights (whether such rights
are designated as a right of first offer, right of first refusal, expansion
option or otherwise) of any tenant of the Building existing on the date hereof.

28.2      Right of First
Offer.

(a)        Provided there exists no monetary or material
non-monetary default under the terms, covenants and conditions of this Lease,
Tenant shall have the one time right of offer (the “Offer Right”) to lease the
approximately 5,316 rentable square feet of space commonly known as Suite B-2
on the first floor of the Building and shown on the demising plan attached
hereto as Exhibit E. Tenant’s Offer Right shall be exercised as follows: at any
time after Landlord has determined that the existing tenant in the subject
portion of the Offer Space will not extend or renew the term of its lease for
such Offer Space (but prior to leasing such Offer Space to a party other than
the existing tenant), Landlord shall advise Tenant (the “Advice”) of the terms
under which Landlord is prepared to lease such Offer Space to Tenant for the
remainder of the Term, which terms shall reflect the Fair Market (hereinafter
defined) rate for such Offer Space as reasonably determined by Landlord, Tenant
may lease such Offer Space in its entirety only, under such terms, by
delivering written notice of exercise to Landlord (the “Notice of Exercise”)
within 7 days after the date of the Advice.

 

 

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(b)        Notwithstanding the foregoing, Tenant shall have no
Offer Right with respect to the Offer Space and Landlord need not provide
Tenant with an Advice, if: (i) Tenant is in monetary or material non-monetary
default under this Lease at the time that Landlord would otherwise deliver an
Advice; (ii) the Premises, or any portion thereof, is sublet at the time
Landlord would otherwise deliver an Advice; (iii) this Lease has been assigned
prior to the date Landlord would otherwise deliver an Advice; (iv) Tenant is
not occupying the Premises on the date Landlord would otherwise deliver an
Advice; (v) the Offer Space is not intended for the exclusive use of Tenant
during the Term; or (vi) the existing tenant in the Offer Space is interested
in extending or renewing its lease for the Offer Space or entering into a new
lease for the Offer Space.

(c)        The term for the Offer Space shall commence upon the
commencement date stated in the Advice and thereupon the Offer Space shall be
considered a part of the Premises, provided that all of the terms stated in the
Advice shall govern Tenant’s leasing of such Offer Space and only to the extent
that they do not conflict with the Advice, the terms and conditions of this
Lease shall apply to such Offer Space. Tenant shall pay Base Rent and
Additional Rent for the Offer Space in accordance with the terms and conditions
of the Advice, which terms and conditions shall reflect the Fair Market rate
for the Offer Space as determined in Landlord’s reasonable judgment.

(d)        The Offer Space (including improvements and
personalty, if any) shall be accepted by Tenant in its condition and as-built
configuration existing on the earlier of the date Tenant takes possession of
such Offer Space or as of the date the term for such Offer Space commences,
unless the Advice specifies any work to be performed by Landlord in such Offer
Space, in which case Landlord shall perform such work in such Offer Space. If
Landlord is delayed delivering possession of the Offer Space due to the
holdover or unlawful possession of such space by any party, Landlord shall use
reasonable efforts to obtain possession of the space, and the commencement of
the term for such Offer Space shall be postponed until the date Landlord
delivers possession of such Offer Space to Tenant free from occupancy by any
party.

(e)        The rights of Tenant hereunder with respect to the Offer
Space shall terminate on the earlier to occur of:  (i) 12 calendar months prior
to the expiration of the initial Term of this Lease (ii) the date Landlord
would have provided Tenant written notice of the Offer Right as described
herein above if Tenant had not been in violation of one or more of the
conditions set forth in subparagraph (b) above; and (iii) Tenant’s failure to
exercise its Offer Right within the 5 day period provided in subparagraph (a)
above.

(f)        Notwithstanding anything herein to the contrary,
Tenant’s Offer Right is subject and subordinate to the expansion rights
(whether such rights are designated as a right of first offer, right of first
refusal, expansion option or otherwise) of any tenant of the Building existing
on the date hereof.

(g)        For purposes of this Offer Right, “Fair Market” shall
mean the annual rental rate per square foot for space comparable to the Offer
Space in the Building and office buildings comparable to the Building in the
158th Avenue district of the Beaverton, Oregon area under leases and renewal
and expansion amendments being entered into at or about the time that
Prevailing Market is being determined, giving appropriate consideration to
tenant concessions, brokerage commissions, tenant improvement allowances, existing
improvements in the space in question, and the method of allocating operating
expenses and taxes. Notwithstanding the foregoing, space leased under any of
the following circumstances shall not be considered to be comparable for
purposes hereof: (i) the lease term is for less than the lease term of the
Offer Space, (ii) the space is encumbered by the option rights of another
tenant, or (iii) the space has a lack of windows and/or an awkward or unusual
shape or configuration. The foregoing is not intended to be an exclusive list
of space that will not be considered to be comparable.

28.3      Landlord Default. Landlord’s failure to perform any of
its obligations under this Lease shall constitute a default under this Lease if
such failure is actually a failure of an express obligation of Landlord under
this Lease (as reasonably and mutually determined by Landlord and Tenant) and
continues for 30 days after written notice of such failure, provided that if
such failure is not capable of being cured within such 30 day period through no
fault of Landlord, such failure shall not constitute an event of default by
Landlord hereunder so long as Landlord undertakes to cure the failure within
such 30 day period and thereafter diligently attempts to complete the cure as soon
as reasonably possible, Landlord shall notify Tenant in writing if Landlord
objects to Tenant’s claim of a Landlord default and such notification shall
provide reasonable detail of Landlord’s objection.

[SIGNATURE PAGE TO
FOLLOW]

 

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Submission of this Lease for examination and signature by Tenant
is not an offer to lease and does not create a reservation or option to lease.
This Lease will become effective and binding only upon full execution and
delivery by both Tenant and Landlord. THIS LEASE, WHETHER OR NOT EXECUTED BY
TENANT, IS SUBJECT TO ACCEPTANCE BY LANDLORD, ACTING BY ITSELF OR BY ITS AGENT
BY THE SIGNATURE ON THIS LEASE OF ITS SENIOR VICE PRESIDENT, ASSISTANT VICE
PRESIDENT OR REGIONAL MANAGER AND DELIVERY OF AN ORIGINAL OF SUCH, SIGNATURE TO
TENANT,

Landlord and Tenant have executed this Lease as of the day and
year first above written.

LANDLORD:

PS
Business Parks L.P.

a California limited partnership

By PS
Business Parks, Inc., its general partner

By:       /s/ Coby
Holley                                     

      
Coby Holley, Vice President

 

Date:                                                    

        
EXECUTION DATE

            Landlord
Fed. ID #95-4609260

 

TENANT:

Pro-Dex, Inc. a Colorado corporation,

a Colorado corporation 

 

By:       /s/
 Jeff Ritchey                                      

 

Name: Jeff Ritchey

Title:  CFO

Tax ID Number (SSN or
FEIN):

84-1261240

 

 

 

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