Document:

Exhibit 10.60  

AMENDMENT NUMBER 7 TO LOAN AND SECURITY AGREEMENT  

        THIS AMENDMENT NUMBER 7 TO LOAN AND SECURITY AGREEMENT (this "Amendment"), is dated as of October 31, 2004,
by and between WELLS FARGO FOOTHILL, INC., a California corporation (formerly known as Foothill Capital Corporation) ("Lender") and
QAD Inc., a Delaware corporation ("Borrower"). 

W I T N E S S E T H  

        WHEREAS, Borrower and Lender are parties to that certain Loan and Security Agreement, dated as of September 8, 2000 (as amended, restated, supplemented, or
modified from time to time, the "Loan Agreement"); 

        WHEREAS,
Borrower has requested that Lender amend the Loan Agreement to provide for a reset of certain financial covenants; 

        WHEREAS,
subject to the satisfaction of the conditions set forth herein, Lender is willing to so consent to the amendment of the Loan Agreement. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend the Loan Agreement as follows: 

        1.    DEFINITIONS.    Capitalized terms used herein and not otherwise defined herein shall
have the meanings ascribed to them in the Loan Agreement, as amended hereby. 

        2.    AMENDMENT TO THE LOAN
AGREEMENT.    Section 7.20(a)(ii) of the Loan Agreement is hereby amended and restated in its entirety as
follows: 

        "Tangible Net Worth. Tangible Net Worth of at least the required amount set forth in the following table as of the applicable date set
forth opposite thereto: 

	Applicable Amount
 
	 	Applicable Date

	$	16,700,000	 	April 30, 2004
	$	22,300,000	 	July 31, 2004
	$	23,000,000	 	October 31, 2004
	$	22,000,000	 	January 31, 2005"

        3.    CONDITIONS PRECEDENT TO THIS AMENDMENT.    The satisfaction of each of the following
shall constitute conditions precedent to the effectiveness of this Amendment and each and every provision hereof: 

        (a)   The
representations and warranties of the Loan Agreement and the other Loan Documents shall be true and correct in all respects on and as of the date hereof, as though
made on such date (except to the extent that such representations and warranties relate solely to an earlier date); 

        (b)   No
Default or Event of Default shall have occurred and be continuing; and 

        (c)   No
injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the consummation of the transactions contemplated herein shall
have been issued and remain in force by any Governmental Authority against Borrower or Lender. 

        4.    CONSTRUCTION.    THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF CALIFORNIA 

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APPLICABLE
TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF CALIFORNIA. 

        5.    ENTIRE AMENDMENT; EFFECT OF AMENDMENT.    This Amendment, and terms and provisions
hereof, constitute the entire agreement among the parties pertaining to the subject matter hereof and supersedes any and all prior or contemporaneous amendments relating to the subject matter hereof.
Except for the amendment to the Loan Agreement expressly set forth in Section 2 hereof, the Loan Agreement and other Loan Documents shall remain
unchanged and in full force and effect. To the extent any terms or provisions of this Amendment conflict with those of the Loan Agreement or other Loan Documents, the terms and provisions of this
Amendment shall control. This Amendment is a Loan Document. 

        6.    COUNTERPARTS; TELEFACSIMILE EXECUTION.    This Amendment may be executed in any number
of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Amendment by signing any such counterpart. Delivery of an
executed counterpart of this Amendment by telefacsimile shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of
this Amendment by telefacsimile also shall deliver an original executed counterpart of this Amendment, but the failure to deliver an original executed counterpart shall not affect the validity,
enforceability, and binding effect of this Amendment. 

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        IN
WITNESS WHEREOF, the parties have caused this Amendment to be executed and delivered as of the date first written above. 

	 	 	WELLS FARGO FOOTHILL, INC.,

a California corporation
	

 	
 	

By:	

/s/  KURT DUERFELDT      

	 	 	Name:	Kurt Duerfeldt

	 	 	Title:	SVP

	

 	
 	

QAD INC.

a Delaware corporation
	

 	
 	

By:	

/s/  DANIEL LENDER      

	 	 	Name:	Daniel Lender

	 	 	Title:	EVP and Chief Financial Officer

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Exhibit 10.61  

STANDARD SUBLEASE MULTI-TENANT AIR COMMERCIAL REAL ESTATE ASSOCIATION  

1.    Basic Provisions ("Basic Provisions"),    

        1.1    Parties:    This Sublease ("Sublease"),
dated for reference purposes only November 4, 2004, is made by and between QAD Inc., a Delaware corporation
("Sublessor") and Somera Communications, Inc., a Delaware corporation
("Sublessee"), (collectively the "Parties", or individually a  "Party"). 

        1.2(a)    Premises:    That certain portion of the Project (as defined below), known as
6410 Via Real, Suite C & D, as shown on Exhibits A & B, consisting of approximately 15,252 square feet
("Premises"). The Premises are located at: 6410 Via Real, in the City of Carpinteria, County
of Santa Barbara, State of California, with zip code 93013. In addition to Lessee's rights to use and occupy the
Premises as hereinafter specified, Lessee shall have nonexclusive rights to the Common Areas (as defined below) as hereinafter specified, but shall not have any rights to the roof, the exterior walls,
or the utility raceways of the building containing the Premises ("Building") or to any other buildings in the Project. The Premises, the Building, the
Common Areas, the land upon which they are located, along with all other buildings and improvements thereon, are herein collectively referred to as the  "Project."

        1.2(b)    Parking:    60 unreserved and
0 reserved vehicle parking spaces. 

        1.3    Term:    6 years and
8.5 months commencing December 1, 2004 ("Commencement Date") and ending
August 16, 2011 ("Expiration Date"). 

        1.4    Early Possession:    December 1, 2004
("Early Possession Date"). 

        1.5    Base Rent:    $17,844.84 per month
("Base Rent)", payable on the 1st day of each month commencing
March 1, 2005. 

	ý
	If
this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. The base rent shall be adjusted
annually beginning on December 1, 2005, per the formula in paragraph 52.1 of the Master Lease, with the Base Rent for the first month of the term of this Sublease deemed for purposes of
the first adjustment to be the Base Rent payable per paragraph 1.7(a) of this Sublease. 

        1.6    SubLessee's Share of Operating
Expenses:    fifty-nine percent (59%) ("SubLessee's
Share"). 

        1.7    Base Rent and Other Monies Paid Upon Execution:    

        (a)    Base Rent:    $17,844.84 for the period
March 1-31, 2005. 

        (b)    Security Deposit:    $17,844.84
("Security Deposit"). 

        (c)    Other:    $6,201.98 for
February 1-28, 2005 (Sublessee's Share of Operating Expenses other than electrical + $0.19 psf × 2,138 sf for electrical
for Suite C. 

	  
  
 INITIALS	 	 	 	JR
KL
 INITIALS

	©2001—AIR COMMERCIAL REAL ESTATE ASSOCIATION	 	FORM SBMT-0-4/01E

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        (d)    Total Due Upon Execution of this Lease:    $41,891.66. 

        1.8    Agreed Use:    general office use, and no other use without Sublessor's
prior written consent. See Master Lease Addendum for additional terms. 

        1.9    Real Estate Brokers:    

        (a)    Representation:    The following real estate brokers (the  "Brokers") and brokerage relationships exist in this transaction
(check applicable boxes): 

	o
	represents
 Sublessor exclusively ("Lessor's Broker");

	o
	represents
 Sublessee exclusively ("Lessee's Broker"); or

	ý
	Leider
Hayes Commercial represents both Sublessor and Sublessee ("Dual
Agency"). 

        (b)    Payment to Brokers:    Upon execution and delivery of this
Sublease by both Parties, Sublessor shall pay to the Brokers the brokerage fee agreed to in a separate written agreement (or if there is no such agreement the sum
of                         or
                        % of the total Base Rent for the brokerage services rendered by the Brokers). 

        1.10    Guarantor.    The
obligations of the Sublessee under this Sublease shall be guaranteed
by                                         
       
("Guarantor"). 

        1.11    Attachments.    Attached hereto are the following, all of which constitute a part of
this Sublease: 

	o
	an
Addendum consisting of
Paragraphs                        through               
         :

	ý
	a
plot plan depicting the Premises and/or Project;

	o
	a
current set of the Rules and Regulations;

	o
	a
Work Letter;

	ý
	a
copy of the Master Lease and the Addendum to Lease:

	ý
	other
(specify): Building Common Area—Exhibit C 

2.    Premises.    

        2.1    Letting.    Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases
from Sublessor, the Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set forth in this Sublease. Unless otherwise provided herein, any statement of size set
forth in this Sublease, or that may have been used in calculating Rent, is an approximation which the Parties agree is reasonable and any payments based thereon are not subject to revision whether or
not the actual size is more or less. Note: Sublessee is advised to verify the actual size prior to executing this Sublease. 

        2.2    Condition.    Sublessor shall deliver the Premises to Sublessee broom clean and free of
debris on the Commencement Date or the Early Possession Date, whichever first occurs ("Start Date"), and warrants that the existing electrical,
plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems ("HVAC"), and any items which the Lessor is
obligated to construct pursuant to the Work Letter attached hereto, if any, other than those constructed by Lessee, shall be in good operating condition on said date. If a
noncompliance with such warranty exists as of the Start Date, or if one of such systems or elements should malfunction or fail within the appropriate warranty period, Sublessor shall, as Sublessor's
sole obligation with respect to such matter, except as otherwise provided in this Sublease, promptly after receipt of written notice from Sublessee setting forth with specificity the nature and extent
of such noncompliance, malfunction or failure, rectify same at Sublessor's expense. The warranty periods shall be as follows: (i) 6 months as to the HVAC systems, and
(ii) 30 days as to the remaining systems and other elements. If Sublessee does not give Sublessor the 

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required
notice within the appropriate warranty period, correction of any such noncompliance, malfunction or failure shall be the obligation of Sublessee at Sublessee's sole cost and expense. 

        2.3    Compliance.    Sublessor warrants that any improvements, alterations or utility
installations made or installed by or on behalf of Sublessor to or on the Premises comply with all applicable covenants or restrictions of record and applicable building codes, regulations and
ordinances ("Applicable Requirements") in effect on the date that they were made or installed. Sublessor makes no warranty as to the use to which
Sublessee will put the Premises or to modifications which may be required by the Americans with Disabilities Act or any similar laws as a result of Sublessee's use. NOTE:
Sublessee is responsible for determining whether or not the zoning and other Applicable Requirements are appropriate for Sublessee's intended use, and acknowledges that past uses of the Premises may
no longer be allowed. If the Premises do not comply with said warranty, Sublessor shall, except as otherwise provided, promptly after receipt of written notice from Sublessee
setting forth with specificity the nature and extent of such noncompliance, rectify the same. 

        2.4    Acknowledgements.    Sublessee acknowledges that: (a) it has been advised by
Sublessor and/or Brokers to satisfy itself with respect to the condition of the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects,
and compliance with Applicable
Requirements and the Americans with Disabilities Act), and their suitability for Sublessee's intended use, (b) Sublessee has made such investigation as it deems necessary with reference to such
matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, and (c) neither Sublessor, Sublessor's agents, nor Brokers have made any oral or written
representations or warranties with respect to said matters other than as set forth in this Sublease. In addition, Sublessor acknowledge that: (i) Brokers have made no representations, promises
or warranties concerning Sublessee's ability to honor the Sublease or suitability to occupy the Premises, and (ii) it is Sublessor's sole responsibility to investigate the financial capability
and/or suitability of all proposed tenants. 

        2.5    Americans with Disabilities Act.    In the event that as a result of Sublessee's use,
or intended use, of the Premises the Americans with Disabilities Act or any similar law requires modifications or the construction or installation of improvements in or to the Premises, Building,
Project and/or Common Areas, the Parties agree that such modifications, construction or improvements shall be made at: o Sublessor's
expense    ý Sublessee's expense. 

        2.6    Vehicle Parking.    Sublessee shall be entitled to use the
number of Unreserved Parking Spaces and Reserved Parking Spaces that have been assigned to Sublessor under the Master Lease specified in Paragraph 1.2(b) on those
portions of the Common Areas designated from time to time for parking. Sublessee shall not use more parking spaces than said number. Said parking spaces shall be used for parking by
vehicles no larger than fullsize passenger automobiles or pickup trucks, herein called "Permitted Size
Vehicles." Sublessor may regulate the leading and unleading of vehicles by adopting Rules and Regulations as provided in
Paragraph 2.9. No Vehicles other than Permitted Size Vehicles may be parked in the Common Area without the prior written permission of Sublessor. 

        (a)   Sublessee
shall not permit or allow any vehicles that belong to or are controlled by Sublessee or Sublessee's
employees, suppliers, shippers, customers, contractors or invitees to be leaded, unleaded, or parked in areas other than those designated by Sublessor for such activities. 

        (b)   Sublessee
shall not service or store any vehicles in the Common Areas. 

        (c)   If
Sublessee permits or allows any of the prohibited activities described in this Paragraph 2.6, then
Sublessor shall have the right without notice, in addition to such other rights and remedies that it may have, to remove or tow away the vehicle involved and charge the cost to Sublessee, which cost
shall be immediately payable upon demand by Sublessor. 

        2.7    Common Areas—Definition.    The term "Common
Areas" is defined as set forth in the Master Lease. all areas and facilities outside the Premises and within the exterior
boundary line of the Project and interior utility raceways and installations within the Premises that are provided and designated by the Sublessor from time to time for the general nonexclusive use of
Sublessor, Sublessee and other tenants of the Project and their respective employees, suppliers, shippers, customers,
contractors and invitees, including parking areas, leading and unloading areas, trash areas, roadways, walkways, driveways and landscaped areas. 

3

 

        2.8    Common Areas—Sublessee's
Rights.    Sublessor grants to Sublessee, for the benefit of Sublessee and its employees, suppliers, shippers, contractors,
customers and invitees, during the term of this Sublease, the nonexclusive right to use, in common with others entitled to such use, the Common Areas as they exist from time to time, subject to any
rights, powers, and privileges reserved by Sublessor under the terms hereof or under the terms of any rules and regulations or restrictions governing the use of the Project. Under no circumstances
shall the right herein granted to use the Common Areas be deemed to include the right to store any property, temporarily or permanently, in the Common Areas. Any such storage shall be permitted only
by the prior written consent of Sublessor or Sublessor's designated agent, which consent may be revoked at any time. In the event that any unauthorized storage shall occur then Sublessor shall have
the right, without notice, in addition to such other rights and remedies that it may have, to remove the property and charge the cost of Sublessee, which cost shall be immediately payable upon demand
by Sublessor. 

        2.9    Common Areas—Rules and
Regulations.    Sublessor or such other person(s) as Sublessor may appoint shall have the exclusive control and management of
the Common Areas and shall have the right, from time to time, to establish, modify, amend and enforce reasonable rules and regulations
("Rules and Regulations") for the management, safety, care, and
cleanliness of the grounds, the parking and unloading of vehicles and the preservation of good order, as well as for the convenience of other occupants or tenants of the Building and the Project and
their invitees. Sublessee agrees to abide by and conform to all such Rules and Regulations, and to cause its employees, suppliers, shippers, customers, contractors and invitees to so abide and
conform. Sublessor shall not be responsible to Sublessee for the noncompliance with said Rules and Regulations by other tenants of the Project. 

        2.10    Common
Areas—Changes.    Sublessor shall have the right, in Sublessor's sole discretion from time to
time: 

        (a)   To
make changes to the Common Areas, including, without limitation, changes in the location, size, shape and
number of driveways, entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways and utility raceways; 

        (b)   To
close temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the
Premises remains available; 

        (c)   To
add additional buildings and improvements to the Common Areas; 

        (d)   To
use the Common Areas while engaged in making additional improvements, repairs or alterations to the Project,
or any portion thereof; and 

        (e)   To
do and perform such other acts and make such other changes in, to or with respect to the Common Areas and
project as Sublessor may, in the exercise of sound business judgment, deem to be appropriate. 

3.    Possession.    

        3.1    Early
Possession.    If Sublessee totally or partially occupies the Premises prior to the Commencement Date, the obligation to pay
Base Rent shall be abated for the period of such early possession. All other terms of this Sublease (including but not limited to the obligations to pay Sublessee's Share of Common Area Operating
Expenses, Real Property Taxes and insurance premiums and to maintain the Premises) shall, however, be in effect during such period. Any such early possession shall not affect the Expiration
Date. 

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        3.2    Delay in
Commencement.    Sublessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises by the
Commencement Date. If, despite said efforts, Sublessor is unable to deliver possession as agreed, the rights and obligations of Sublessor and Sublessee shall be as set forth in Paragraph 3.3 of the
Master Lease (as modified by Paragraph 7.3 of this Sublease). 

        3.4    Sublessee Compliance.    Sublessor shall not be required to tender possession of the
Premises to Sublessee until Sublessee complies with its obligation to provide evidence of insurance. Pending delivery of such evidence, Sublessee shall be required to perform all of its obligations
under this Sublease from and after the Start Date, including the payment of Rent, notwithstanding Sublessor's election to withhold possession pending receipt of such evidence of insurance. Further, if
Sublessee is required to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Sublessor may elect to withhold possession until such conditions are
satisfied. 

4.    Rent and Other Charges.    

        4.1    Rent Defined.    All monetary obligations of Sublessee to Sublessor under the terms of
this Sublease (except for the Security Deposit) are deemed to be rent ("Rent"). Rent shall be payable in lawful money of the United States to Sublessor
at the address stated herein or to such other persons or at such other places as Sublessor may designate in writing. 

        4.2    Common Area Operating Expenses.    Beginning February 1,
2005, Sublessee shall pay to Sublessor during the term hereof, in addition to the Base Rent, Sublessee's Share of Sublessor's share of all Common Area
Operating Expenses, as hereinafter defined, during each calendar year of the term of this Sublease, in accordance with the following provisions: 

        (a)   "Common Area Operating Expenses" are defined, for purposes of this Sublease, as defined in the Master
Lease. as all costs incurred by Sublessor relating to the operation of the Project, including, but not limited to, the following: 

          (i)  The
operation, repair and maintenance, in neat, clean, good order and condition, but not the replacement (see
paragraph (a)), of the following: 

        (aa) The
Common Areas and Common Area improvements, including parking areas, loading and unloading areas, trash
areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs, and roof drainage
systems. 

        (bb) Exterior
signs and any tenant directories. 

        (cc) Any
fire sprinkler systems. 

         (ii)  The
cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately
metered. 

        (iii)  Trash
disposal, pest control services, property management, security services, and the costs of any
environmental inspections. 

        (iv)  Reserves
set aside for maintenance and repair of Common Areas. 

         (v)  Real
Property Taxes. 

        (vi)  Insurance
premiums. 

       (vii)  Any
deductible portion of an insured loss concerning the Building or the Common Areas. 

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        (b)   The
inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(a) shall not be deemed
to impose an obligation upon Sublessor to either have said improvements or facilities or to provide these services unless Sublessor already provide the services, or Sublessor has agreed elsewhere in
this Sublease to provide the same or some of them. 

        (c)   Sublessee's
Share of Common Area Operating Expenses shall be payable by Sublessee within 10 days after a
reasonably detailed statement of actual expenses is presented to Sublessee. At Sublessor's option, however, an amount may be estimated by Sublessor from time to time of Sublessee's Share of annual
Common Area Operating Expenses and the same shall be payable monthly or quarterly, as Sublessor shall designate, during each 12 month period of the Sublease term, on the same day as the Base
Rent is due hereunder. Sublessor shall deliver to Sublessee within 60 days after the expiration of each calendar year a reasonably detailed statement showing Sublessee's Share of the actual
Common Area Operating Expenses incurred during the preceding year. If Sublessee's payments under this Paragraph 4.2(c) during the preceding year exceed Sublessee's Share as indicated on such
statement, Sublessor shall credit the amount of such overpayment against Sublessee's Share of Common Area Operating Expenses next becoming due. If Sublessee's payments under this
Paragraph 4.2(c) during the preceding year were less than Sublessee's Share as indicated on such statement, Sublessee shall pay to Sublessor the amount of the deficiency within 10 days
after delivery by Sublessor to Sublessee of the statement. 

        4.3    Utilities.    Beginning February 1, 2005, Sublessee shall pay for all water,
gas, heat, light, power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon. Notwithstanding the provisions of
Paragraph 4.2, if if at any time in Sublessor's sole reasonable judgment, Sublessor determines that
Sublessee is using a disproportionate amount of water, electricity or other commonly metered utilities, or that Sublessee is generating such a large volume of trash as to require an increase in the
size of the dumpster and/or an increase in the number of times per month that the dumpster is emptied, then Sublessor may increase Sublessee's Base Rent by an amount equal to such increased costs. 

5.    Security Deposit.    The rights and obligations of Sublessor and Sublessee as to said Security Deposit
shall be as set forth in Paragraph 5 of the Master Lease (as modified by Paragraph 7.3 of this Sublease). 

6.    Agreed Use.    The Premises shall be used
and occupied only
for                                         
       and for no other purpose.
 

7.    Master Lease.    

        7.1   Sublessor
is the lessee of the Premises by virtue of a lease, hereinafter the "Master Lease" attached
hereto, wherein 

        The
Wright Family C Limited Partnership, a California limited partnership is the lessor, hereinafter the "Master
Lessor".

        7.2   This
Sublease is and shall be at all times subject and subordinate to the Master Lease. 

        7.3   The
terms, conditions and respective obligations of Sublessor and Sublessee to each other under this Sublease shall be the terms and conditions of the Master Lease
except for those provisions of the Master Lease which are directly contradicted by this Sublease in which event the terms of this Sublease document shall control over the Master Lease. Therefore, for
the purposes of this Sublease, wherever in the Master Lease the word "Lessor" is used it shall be deemed to mean the Sublessor herein and wherever in the Master Lease the word "Lessee" is used it
shall be deemed to mean the Sublessee herein. 

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        7.4   During
the term of this Sublease and for all periods subsequent for obligations which have arisen prior to the termination of this Sublease, Sublessee does hereby
expressly assume and agree to perform and comply with, for the benefit of Sublessor and Master Lessor, each and every obligation of Sublessor under the Master Lease except for the following paragraphs
which are excluded therefrom: 51 (Option to Extend Term of Lease), 60.2 (Tenant Improvements) and 62 (Data Center). Sublessee shall have no option to extend the term of this
Sublease. 

        7.5   The
obligations that Sublessee has assumed under paragraph 7.4 hereof are hereinafter referred to as the "Sublessee's Assumed
Obligations". The obligations that sublessee has not assumed under paragraph 7.4 hereof are hereinafter referred to as the "Sublessor's Remaining
Obligations". 

        7.6   Sublessee
shall hold Sublessor free and harmless from all liability, judgments, costs, damages, claims or demands, including reasonable attorneys fees, arising out of
Sublessee's failure to comply with or perform Sublessee's Assumed Obligations. 

        7.7   Sublessor
agrees to maintain the Master Lease during the entire term of this Sublease, subject, however, to any earlier termination of the Master Lease without the fault
of the Sublessor, and to comply with or perform Sublessor's Remaining Obligations and to hold Sublessee free and harmless from all liability, judgments, costs, damages, claims or demands arising out
of Sublessor's failure to comply with or perform Sublessor's Remaining Obligations. 

        7.8   Sublessor
represents to Sublessee that the Master Lease is in full force and effect and that no default exists on the part of any Party to the Master Lease. 

8.    Assignment of Sublease and Default.    

        8.1   Sublessor
hereby assigns and transfers to Master Lessor the Sublessor's interest in this Sublease, subject however to the provisions of Paragraph 8.2 hereof. 

        8.2   Master
Lessor, by executing this document, agrees that until a Default shall occur in the performance of Sublessor's Obligations under the Master Lease, that Sublessor
may receive, collect and enjoy the Rent accruing under this Sublease. However, if Sublessor shall Default in the performance of its obligations to Master Lessor then Master Lessor may, at its option,
receive and collect, directly from Sublessee, all Rent owing and to be owed under this Sublease. Master Lessor shall not, by reason of this assignment of the Sublease nor by reason of the collection
of the Rent from the Sublessee, be deemed liable to Sublessee for any failure of the Sublessor to perform and comply with Sublessor's Remaining Obligations. 

        8.3   Sublessor
hereby irrevocably authorizes and directs Sublessee upon receipt of any written notice from the Master Lessor stating that a Default exists in the performance
of Sublessor's obligations under the Master Lease, to pay to Master Lessor the Rent due and to become due under the Sublease. Sublessor agrees that Sublessee shall have the right to rely upon any such
statement and request from Master Lessor, and that Sublessee shall pay such Rent to Master Lessor without any obligation or right to inquire as to whether such Default exists and notwithstanding any
notice from or claim from Sublessor to the contrary and Sublessor shall have no right or claim against Sublessee for any such Rent so paid by Sublessee. 

        8.4   No
changes or modifications shall be made to this Sublease without the consent of Master Lessor. 

9.    Consent of Master Lessor.    

        9.1   In
the event that the Master Lease requires that Sublessor obtain the consent of Master Lessor to any subletting by Sublessor then, this Sublease shall not be effective
unless, within 10 days of the date hereof, Master Lessor signs this Sublease thereby giving its consent to this Subletting. 

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        9.2   In
the event that the obligations of the Sublessor under the Master Lease have been guaranteed by third parties then neither this Sublease, nor the Master Lessor's
consent, shall be effective unless, within 10 days of the date hereof, said guarantors sign this Sublease thereby giving their consent to this Sublease. 

        9.3   In
the event that Master Lessor does give such consent then: 

        (a)   Such
consent shall not release Sublessor of its obligations or alter the primary liability of Sublessor to pay the Rent and perform and comply with all of the
obligations of Sublessor to be performed under the Master Lease. 

        (b)   The
acceptance of Rent by Master Lessor from Sublessee or any one else liable under the Master Lease shall not be deemed a waiver by Master Lessor of any provisions of
the Master Lease. 

        (c)   The
consent to this Sublease shall not constitute a consent to any subsequent subletting or assignment. 

        (d)   In
the event of any Default of Sublessor under the Master Lease, Master Lessor may proceed directly against Sublessor, any guarantors or any one else liable under the
Master Lease or this Sublease without first exhausting Master Lessor's remedies against any other person or entity liable thereon to Master Lessor. 

        (e)   Master
Lessor may consent to subsequent sublettings and assignments of the Master Lease or this Sublease or any
amendments or modifications thereto without notifying Sublessor or any one else liable under the Master Lease and without obtaining their consent and such action shall not relieve such persons from
liability. 

        (f)    In
the event that Sublessor shall Default in its obligations under the Master Lease, then Master Lessor, at its option and without being obligated to do so, may require
Sublessee to attorn to Master Lessor in which event Master Lessor shall undertake the obligations of Sublessor under this Sublease from the time of the exercise of said option to termination of this
Sublease but Master Lessor shall not be liable for any prepaid Rent nor any Security Deposit paid by Sublessee, nor shall Master Lessor be liable for any other Defaults of the Sublessor under the
Sublease. 

        9.4   The
signatures of the Master Lessor and any Guarantors of Sublessor at the end of this document shall constitute their consent to the terms of this Sublease. 

        9.5   Master
Lessor acknowledges that, to the best of actual Master Lessor's knowledge, no Default presently exists under the Master
Lease of obligations to be performed by Sublessor and that the Master Lease is in full force and effect 

        9.6   In
the event that Sublessor Defaults under its obligations to be performed under the Master Lease by Sublessor,
Master Lessor agrees to deliver to Sublessee a copy of any such notice of default. Sublessee shall have the right to cure any Default of Sublessor described in any notice of default within ten days
after service of such notice of default on Sublessee. If such Default is cured by Sublessee then Sublessee shall have the right of reimbursement and offset from and against
Sublessor. 

10.    Additional Brokers Commissions.    

        10.1    Sublessor
agrees that if Sublessee exercises any option or right of first refusal as granted by Sublessor
herein, or any option or right substantially similar thereto, either to extend the term of this Sublease, to renew this Sublease, to purchase the Premises, or to lease or purchase adjacent property
which Sublessor may own or in which Sublessor has an interest, then Sublessor shall pay to Broker a fee in accordance with the schedule of Broker in effect at the time of the execution of this
Sublease. Notwithstanding the foregoing, Sublessor's obligation under this Paragraph is limited to a transaction in which Sublessor is acting as a Sublessor, lessor or seller. 

8

 

        10.2.    Master
Lessor agrees that if Sublessee shall exercise any option or right of first refusal granted to
Sublessee by Master-Lessor in connection with this-Sublease, or any option or right substantially similar thereto, either to extend or renew the Master Lease, to purchase the Premises or
any part thereof, or to lease or purchase adjacent property which Master Lessor may own or in which Master Lesser has as interest, or if Broker is the procuring cause of any other lease or sale
entered into between Sublessee and Master Lessor pertaining to the Premises, any part thereof, or any adjacent property which Master Lessor owns or in which it has an interest, then as to any of said
transactions. Master Lessor shall pay to Broker a fee, in cash, in accordance with the schedule of Broker in effect at the time of the execution of this Sublease. 

        10.3.    Any
fee due from Sublessor or Master Lessor hereunder shall be due and payable upon the exercise of any
option to extend or renew, upon the execution of any new lease, or, in the event of a purchase, at the close of escrow. 

        10.4.    Any
transferee of Sublessor's interest in this Sublease, or of Master Lessor's interest in the Master Lease,
by accepting an assignment thereof, shall be deemed to have assumed the respective obligations of Sublessor or Master Lessor under this Paragraph 10. Broker shall be deemed to be a third party
beneficiary of this paragraph 10. 

11.    Representations and Indemnities of Broker Relationships.    The Parties each represent and warrant to
the other that it has had no dealings with any person, firm, broker or finder (other than the Brokers, if any) in connection with this Sublease, and that no one other than said named Brokers is
entitled to any commission or finder's fee in connection herewith. Sublessee and Sublessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for
compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying Party, including any costs, expenses,
attorney's fees reasonably incurred with respect thereto. 

12.    Attorney's fees.    If any Party or Broker brings an action or proceeding involving the Premises
whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to
reasonable attorneys' fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term,  "Prevailing Party" shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be,
whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys' fees award shall not be computed in accordance with any court fee
schedule, but shall be such as to fully reimburse all attorneys' fees reasonably incurred. In addition, Sublessor shall be entitled to attorneys' fees, costs and expenses incurred in the preparation
and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach ($200 is a
reasonable minimum per occurrence for such services and consultation). 

13.    No Prior or Other Agreements; Broker Disclaimer.    This Sublease contains all agreements between the
Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Sublessor and Sublessee each represents and warrants to the
Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Sublease and as to the use,
nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. The liability (including court costs
and attorneys' fees), of any Broker with respect to negotiation, execution, delivery or performance by either Sublessor or Sublessee under this Sublease or any amendment or modification hereto shall
be limited to an amount up to the fee received by such Broker pursuant to this Sublease; provided, however, that the foregoing limitation on each Broker's liability shall not be applicable to any
gross negligence or willful misconduct of such Broker. 

9

 

14.    Tenant
Improvements:    Sublessee shall be responsible for all improvements, subject to the terms and conditions of this Sublease and the Master
Lease and Sublessor's reasonable approval. 

15.    Signs:    Sublessee shall
have the exclusive right to install prominent building signage, subject to the terms and conditions of this Sublease and the Master Lease and Sublessor's reasonable approval. 

16.    Building Common Area:    In
addition to the Common Area that is defined in the Master Lease, the Building of which the Premises are a part has the following first floor common area ("Building Common Area"): main entrance,
interior hallway, two stairways, electrical room and restroom. The Building Common Area is shown on Exhibit C. Sublessor agrees that Sublessee shall have the nonexclusive right to use the
Building Common Area on all the same terms and conditions as set forth in the Master Lease pertaining to Common Area. Sublessor agrees to maintain the Building Common Area. As additional common area
charges, Sublessee shall pay Sublessee's Share of Common Area Expenses as defined in Paragraph 1.6 multiplied by QAD's actual expenses for maintaining the Building Common Area. All Sublessor
billing for Common Area expenses, and any disputes regarding those charges and the charges set forth in paragraph 17 below, shall be resolved as provided in the Master Lease for Common Area
Expenses. 

17.    Building Utilities:    In
addition to the Other charges set forth in Paragraph 1.7(c), Sublessee will pay for all electrical utilities to the second floor of the Building, which are separately metered. 

ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE ASSOCIATION OR BY ANY REAL ESTATE BROKER AS TO THE
LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS SUBLEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:

        1.     SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS SUBLEASE.

        2.     RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO:
THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PROPERTY, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR
SUBLESSEE'S INTENDED USE.

WARNING: IF THE SUBJECT PROPERTY IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE SUBLEASE MAY NEED TO BE REVISED TO COMPLY WITH
THE LAWS OF THE STATE IN WHICH THE PROPERTY IS LOCATED.

10

 

	Execute at:	  
	 	Executed at:	Santa Barbara, CA

	On:	  
	 	On:	Nov. 29, 2004

	
By SUBLESSOR:

QAD Inc., a Delaware corporation
  
	
 	
By SUBLESSEE:
Somera Communications, Inc.,
a Delaware corporation

	

By:	

/s/  KARL LOPKER      
	
 	

By:	

/s/  JEREMY ROSSEN      

	Name Printed:	KARL LOPKER
	 	Name Printed:	Jeremy Rossen

	Title:	CHIEF EXECUTIVE OFFICER
	 	Title:	Vice President

	By:	  
	 	By:	  

	Name Printed:	  
	 	Name Printed:	  

	Title:	  
	 	Title:	  

	Address:	  
  
	 	Address:	5383 Hollister Ave
Santa Barbara, CA 93111

	Telephone:	(      )
	 	Telephone:	(      )

	Facsimile:	(      )
	 	Facsimile:	(      )

	Federal ID No.	  
	 	Federal ID No.	  

	
BROKER:	

 	
 	

BROKER:	

 
	

Leider Hayes Commercial
  
	
 	

  
  

	

Attn:	

Francois DeJohn
	
 	

Attn:	

  

	Title:	Partner
	 	Title:	  

	Address:	3700 State Street, Suite 240
Santa Barbara, CA 93105
	 	Address:	  
  

	Telephone:	(805) 563-2111
	 	Telephone:	(      )

	Facsimile:	(805) 898-4360
	 	Facsimile:	(      )

	Federal ID No.	  
	 	Federal ID No.	  

	

Consent to the above Sublease is hereby given.	
 	

 	

 
	

Executed at:	

  
	
 	

Executed at:	

  

	On:	  
	 	On:	  

11

 

	
By MASTER LESSOR:	
 	

By GUARANTOR(S):
	

See attached Addendum
	
 	

By:	

  

	  
	 	Name Printed:	  

	 	 	 	Address:	  

	By:	  
	 	 	  

	Name Printed:	  
	 	 	 
	Title:	  
	 	 	 
	

By:	

  
	
 	

By:	

  

	Name Printed:	  
	 	Name Printed:	  

	Title:	  
	 	Address:	  

	Address:	  
  
	 	 	  

	Telephone:	(      )
	 	 	 
	Facsimile:	(      )
	 	 	 
	Federal ID No.	  
	 	 	 

NOTE: These forms are often modified to meet changing requirements of law and needs of the industry. Always write or call to make sure you are utilizing the most current form:
AIR COMMERCIAL REAL ESTATE ASSOCIATION, 700 So. Flower St., Suite 600, Los Angeles, CA 90017. (213) 687-8777.

12

 
 
 

Addendum to Standard Sublease
  Consent of Master Lessor    
    

        Master Lessor hereby consents to the subleasing of the Premises to Sublessee pursuant to the terms of the Sublease: provided, however, that Master Lessor
specifically does not consent to any provision of the Sublease which: (i) purports to amend provisions of the Master Lease, (ii) provides rights or benefits to Sublessee beyond those
specifically set forth in the Master Lease, or (iii) imposes obligations on Master Lessor. The consent given by the Master Lessor to the subleasing of the Premises, shall not include consent to
any specific actions on the part of Sublessor or Sublessee (including, without limitation, the making of any alterations or improvements to the Premises or the further subleasing of the Premises or
assignment of the Master Lease by Sublessor) for which the separate approval of Master Lessor is otherwise required under the Master Lease. Master Lessor's consent shall not release
Sublessor of any of its obligations under the Master Lease or release or alter the liability of Sublessor to pay rent and all other sums due under the Master Lease and to perform and comply with all
other obligations of Sublessor under the Master Lease. As between Master Lessor and Sublessor, the Sublease shall not alter, amend or otherwise modify any provisions of the Master Lease. Master Lessor
shall have no obligations to any party in connection with the Premises other than those obligations set forth in the Master Lease. 

"Master
Lessor" 

THE
WRIGHT FAMILY C LIMITED

PARTNERSHIP, a California limited

partnership 

	By:	/s/  JEANNE M. BORTOLAZZO, G.P.      
 Jeanne M. Bortolazzo, General Partner	 	 

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QuickLinks

Addendum to Standard Sublease Consent of Master Lessor

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