Document:

exv10w47

Exhibit 10.47

Lease Agreement

By and Between

Kifer Tech Investors llc,

a Delaware limited liability company

as Landlord

and

Trident Microsystems, Inc.,

a Delaware corporation

as Tenant

Dated March 5, 2010

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	Index of Defined Terms
	 	iv
	 
	 	 	 	 
	Basic Lease Information
	 	v
	 
	 	 	 	 
	1. Demise
	 	 	1	 
	 
	 	 	 	 
	2. Premises
	 	 	1	 
	 
	 	 	 	 
	3. Term
	 	 	2	 
	 
	 	 	 	 
	4. Rent
	 	 	2	 
	 
	 	 	 	 
	5. Utility Expenses
	 	 	10	 
	 
	 	 	 	 
	6. Late Charge
	 	 	11	 
	 
	 	 	 	 
	7. Security Deposit
	 	 	12	 
	 
	 	 	 	 
	8. Possession
	 	 	13	 
	 
	 	 	 	 
	9. Use of Premises
	 	 	13	 
	 
	 	 	 	 
	10. Acceptance of Premises
	 	 	16	 
	 
	 	 	 	 
	11. Surrender
	 	 	16	 
	 
	 	 	 	 
	12. Alterations and Additions
	 	 	17	 
	 
	 	 	 	 
	13. Maintenance and Repairs of Premises
	 	 	19	 
	 
	 	 	 	 
	14. Landlord’s Insurance
	 	 	21	 
	 
	 	 	 	 
	15. Tenant’s Insurance
	 	 	21	 
	 
	 	 	 	 
	16. Indemnification
	 	 	22	 
	 
	 	 	 	 
	17. Subrogation
	 	 	22	 
	 
	 	 	 	 
	18. Signs
	 	 	23	 
	 
	 	 	 	 
	19. Free From Liens
	 	 	24	 
	 
	 	 	 	 
	20. Entry By Landlord
	 	 	24	 
	 
	 	 	 	 
	21. Destruction and Damage
	 	 	25	 
	 
	 	 	 	 
	22. Condemnation
	 	 	27	 
	 
	 	 	 	 
	23. Assignment and Subletting
	 	 	28	 
	 
	 	 	 	 
	24. Default
	 	 	34	 
	 
	 	 	 	 
	25. Landlord’s Remedies
	 	 	36	 

i

 

	 	 	 	 	 
	 	 	Page
	26. Right to Perform Obligations
	 	 	39	 
	 
	 	 	 	 
	27. Attorneys’ Fees
	 	 	40	 
	 
	 	 	 	 
	28. Taxes
	 	 	41	 
	 
	 	 	 	 
	29. Effect of Conveyance
	 	 	41	 
	 
	 	 	 	 
	30. Estoppel Certificates
	 	 	41	 
	 
	 	 	 	 
	31. Subordination
	 	 	41	 
	 
	 	 	 	 
	32. Environmental Covenants
	 	 	43	 
	 
	 	 	 	 
	33. Notices
	 	 	46	 
	 
	 	 	 	 
	34. Waiver
	 	 	46	 
	 
	 	 	 	 
	35. Holding Over
	 	 	46	 
	 
	 	 	 	 
	36. Successors and Assigns
	 	 	46	 
	 
	 	 	 	 
	37. Time
	 	 	47	 
	 
	 	 	 	 
	38. Brokers
	 	 	47	 
	 
	 	 	 	 
	39. Limitation of Liability
	 	 	47	 
	 
	 	 	 	 
	40. Financial Statements
	 	 	48	 
	 
	 	 	 	 
	41. Rules and Regulations
	 	 	48	 
	 
	 	 	 	 
	42. Mortgagee Protection
	 	 	48	 
	 
	 	 	 	 
	43. Parking
	 	 	49	 
	 
	 	 	 	 
	44. Entire Agreement
	 	 	50	 
	 
	 	 	 	 
	45. Interest
	 	 	50	 
	 
	 	 	 	 
	46. Construction
	 	 	50	 
	 
	 	 	 	 
	47. Representations and Warranties of Tenant
	 	 	50	 
	 
	 	 	 	 
	48. Name of Building
	 	 	52	 
	 
	 	 	 	 
	49. Renewal Option (with FMV Rent)
	 	 	52	 
	 
	 	 	 	 
	50. Security
	 	 	54	 
	 
	 	 	 	 
	51. Judicial Reference
	 	 	55	 
	 
	 	 	 	 
	52. Recordation
	 	 	56	 
	 
	 	 	 	 
	53. Force Majeure
	 	 	56	 

ii

 

	 	 	 	 	 
	 	 	Page
	54. Acceptance
	 	 	57	 
	 
	 	 	 	 
	55. Furniture
	 	 	57	 
	 
	 	 	 	 
	56. Miscellaneous
	 	 	58	 

Index of Exhibits

A   Diagram of the Premises

B   Tenant Work Letter

C   Commencement and Expiration Date Memorandum

D   Rules and Regulations

E   Form of Estoppel

F   Form of Subordination, Non-Disturbance and Attornment Agreement

G   Hazardous Materials Disclosure Certificate

H   Furniture List

iii

 

Index of Defined Terms

	 	 	 	 	 
	ADA
	 	 	14	 
	Additional Rent
	 	 	2	 
	Affiliates
	 	 	33	 
	Alteration
	 	 	17	 
	Alterations
	 	 	17	 
	Anti-Terrorism Law
	 	 	52	 
	Appraisal Panel
	 	 	54	 
	Base Rent
	 	 	2	 
	Basic Lease Information
	 	 	1	 
	Building
	 	 	1	 
	Building Systems
	 	 	16	 
	Casualty Discovery Date
	 	 	25	 
	Chronic delinquency
	 	 	35	 
	Chronic overuse
	 	 	36	 
	Commencement Date
	 	 	2	 
	Common Areas
	 	 	1	 
	Comparable Buildings
	 	 	55	 
	Comparison Leases
	 	 	54	 
	Condemnation
	 	 	27	 
	Controllable Expenses
	 	 	6	 
	controlling persons
	 	 	32	 
	CPA
	 	 	9	 
	Default
	 	 	34	 
	Electric Service Provider
	 	 	11	 
	Environmental Laws
	 	 	44	 
	Executive Order No. 13224
	 	 	52	 
	Expense Adjustment Deadline
	 	 	5	 
	Expense Exclusions
	 	 	6	 
	Expenses
	 	 	3	 
	Expiration Date
	 	 	2	 
	Extension Notice
	 	 	53	 
	Extension Term
	 	 	53	 
	Force Majeure
	 	 	57	 
	Furniture
	 	 	57	 
	Guarantor
	 	 	34	 
	Hazardous Materials
	 	 	43	 
	Holder
	 	 	49	 
	Identification Signs
	 	 	24	 
	Initial Disclosure Certificate
	 	 	43	 
	JAMS
	 	 	56	 
	Landlord
	 	 	41	 
	Landlord Parties
	 	 	47	 
	Landlord’s Agents
	 	 	13	 
	Landlord’s Determination
	 	 	53	 
	Landlord’s Hazardous Materials
	 	 	46	 
	Landlord’s Insureds
	 	 	21	 
	Laws
	 	 	14	 
	Lease
	 	 	1	 
	Negotiation Period
	 	 	53	 
	Non-Disturbance Agreement
	 	 	42	 
	Option
	 	 	53	 
	organizational documents
	 	 	32	 
	Parking Areas
	 	 	1	 
	Premises
	 	 	1	 
	Prevailing Market Rate
	 	 	54	 
	Private Restrictions
	 	 	14	 
	Prohibited Person
	 	 	52	 
	Project
	 	 	1	 
	Proportionate Share
	 	 	8	 
	Public Company
	 	 	32	 
	Rent
	 	 	9	 
	Report Date
	 	 	10	 
	Rooftop Equipment
	 	 	15	 
	Rules and Regulations
	 	 	14	 
	Signage Criteria
	 	 	24	 
	Strategic Partners
	 	 	34	 
	Successor Landlord
	 	 	42	 
	Superior Lease(s)
	 	 	42	 
	Superior Lessor
	 	 	42	 
	Superior Mortgage(s)
	 	 	42	 
	Superior Mortgagee
	 	 	42	 
	Systems
	 	 	4	 
	Taxes and assessments
	 	 	3	 
	Tenant’s Agents
	 	 	13	 
	Tenant’s Determination
	 	 	53	 
	Tenant’s Property
	 	 	22	 
	Term
	 	 	2	 
	Third CPA
	 	 	10	 
	Transfer Premium
	 	 	30	 
	Updated Disclosure Certificate
	 	 	43	 
	USA Patriot Act
	 	 	52	 
	Utilities
	 	 	10	 
	Utility Expenses
	 	 	4	 
	Visitors
	 	 	50	 
	worth at the time of award
	 	 	38	 

iv

 

Lease
Agreement

Basic Lease Information

	 	 	 
	Lease Date:

	 	March 5, 2010
	 
	 	 
	Landlord:

	 	Kifer Tech Investors llc,

a Delaware limited liability company
	 
	 	 
	Landlord’s Address:

	 	c/o UBS Realty Investors llc

455 Market Street, Suite 1540

San Francisco, California 94105

Attention: Kifer Technology Center — Asset Manager
	 
	 	 
	 

	 	All notices sent to Landlord under this Lease 
shall be sent to the above address,
with copies to:
	 
	 	 
	 

	 	     CB Richard Ellis

     225 West Santa Clara Street, Suite 1050

     San Jose, California 95113

     Attention: Kifer Technology Center — Property Manager
	 
	 	 
	Tenant:

	 	Trident Microsystems, Inc.,

a Delaware corporation
	 
	 	 
	Tenant’s Contact Person:

	 	General Counsel
	 
	 	 
	Tenant’s Address Prior to
Commencement Date and
Telephone Number:

	 	3408 Garrett Drive

Santa Clara, California 95054

(408) 764-8808
	 
	 	 
	Tenant’s Address After 

Commencement Date

	 	1170 Kifer Road

Sunnyvale, California
	 
	 	 
	Premises Square Footage:

	 	Approximately fifty-seven thousand six hundred forty-nine (57,649) rentable square
feet
	 
	 	 
	Premises Address:

	 	1170 Kifer Road

Sunnyvale, California
	 
	 	 
	Project:

	 	Kifer Technology Center, 1150-1170 Kifer Road, Sunnyvale, California, together with
the land on which the Project is situated and all Common Areas
	 
	 	 
	Building (if not the same 

as the Project):

	 	1170 Kifer Road

Sunnyvale, California

v

 

	 	 	 
	Tenant’s Proportionate
Share of Building:

	 	100%
	 
	 	 
	Tenant’s Proportionate
Share of Project:

	 	55.83%
	 
	 	 
	Length of Term:

	 	Sixty (60) months
	 
	 	 
	Estimated Commencement 

Date:

	 	April 1, 2010
	 
	 	 
	Estimated Expiration Date:

	 	March 31, 2015

	 	 	 	 	 	 	 	 	 	 	 
	Base Rent:	 	 	 	 	 	 	 	Monthly	 	Monthly
	 	 	Period	 	Sq. Ft.	 	Base Rate	 	Base Rent
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	1 – 12
	 	 	57,649	 	 	× $0.00
	 	= $0.00
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	13 – 24
	 	 	57,649	 	 	× $0.85
	 	= $49,001.65
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	25 – 36
	 	 	57,649	 	 	× $1.00
	 	= $57,649.00
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	37 – 48
	 	 	57,649	 	 	× $1.05
	 	= $60,531.45
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	49 – 60
	 	 	57,649	 	 	× $1.10
	 	= $63,413.90
	 
	 	 	 	 	 	 	 	 	 	 

	 	 	 
	Prepaid Base Rent:

	 	Forty-Nine Thousand One and 65/100 Dollars ($49,001.65)
	 
	 	 
	Month to which Prepaid
Base Rent will be
Applied:

	 	Thirteenth (13th) month of the Term
	 
	 	 
	Prepaid Estimated 

Additional Rent:

	 	Twenty One Thousand Six Hundred Seventeen Dollars ($21,617.00)
	 
	 	 
	Month to which Prepaid
Estimated Additional Rent
will be Applied:

	 	First (1st) month of the Term
	 
	 	 
	Security Deposit:

	 	Sixty-Three Thousand Four Hundred Thirteen and 90/100 Dollars ($63,413.90)
	 
	 	 
	Permitted Use:

	 	General office, research and development, lab and warehouse uses
	 
	 	 
	Undesignated Parking 

Spaces:

	 	Two Hundred Twenty Four (224) nonexclusive and undesignated parking spaces

vi

 

	 	 	 
	Designated Visitor 

Parking Spaces:

	 	Five (5) designated visitor parking spaces
	 
	 	 
	Broker(s):

	 	CB Richard Ellis, Inc.

vii

 

Lease Agreement

     This Lease Agreement is made and entered into by and between Landlord and Tenant
on the Lease Date. The defined terms used in this Lease which are defined in the Basic Lease
Information attached to this Lease Agreement (“Basic Lease Information”) shall have the
meaning and definition given them in the Basic Lease Information. The Basic Lease Information, the
exhibits, and this Lease Agreement are and shall be construed as a single instrument and are
referred to herein as the “Lease.”

     1. Demise. In consideration for the rents and all other charges and payments payable
by Tenant, and for the agreements, terms and conditions to be performed by Tenant in this Lease,
Landlord does hereby lease to Tenant, and Tenant does hereby hire and take from Landlord,
the Premises described below (the “Premises”), upon the agreements, terms and
conditions of this Lease for the Term hereinafter stated.

     2. Premises. The Premises demised by this Lease is located in that certain building
(the “Building”) specified in the Basic Lease Information, which Building is located in
that certain real estate development (the “Project”) specified in the Basic Lease
Information. The Premises has the address and contains the square footage specified in the Basic
Lease Information; provided, however, that any statement of square footage set forth in this Lease,
or that may have been used in calculating any of the economic terms hereof, is an approximation
which Landlord and Tenant agree is reasonable and, except as expressly set forth in
Paragraphs 4(d)(iii) and 4(d)(v) below, no economic terms based thereon shall be subject to
revision whether or not the actual square footage is more or less. The location and dimensions of
the Premises are depicted on Exhibit A, which is attached hereto and incorporated
herein by this reference. Tenant shall have the non-exclusive right (in common with other tenants,
Landlord and any other person granted use by Landlord) to use the Common Areas (as hereinafter
defined), except that, with respect to parking, Tenant shall have only a license to use the number
of non exclusive parking spaces set forth in the Basic Lease Information in the Project’s parking
areas (the “Parking Areas”). No easement for light or air is incorporated in the
Premises. For purposes of this Lease, “Common Areas” means all areas and facilities
outside the Premises and within the exterior boundary line of the Project that are provided and
designated by Landlord for the non-exclusive use of Landlord, Tenant and other tenants of the
Project and their respective employees, and Visitors (as defined below).

     Landlord has the right, in its sole discretion, from time to time, to: (a) make changes to
the Common Areas, including, without limitation, changes in the location, size, shape and number of
driveways, entrances, parking spaces, parking areas, ingress, egress, direction of driveways,
entrances, corridors and walkways; (b) close temporarily any of the Common Areas so long as
reasonable access to the Premises remains available; (c) add additional buildings and improvements
to the Common Areas or remove existing buildings or improvements therefrom; (d) use the Common
Areas while engaged in making additional improvements, repairs or alterations to the Project or any
portion thereof; and (e) do and perform any other acts or make any other changes in, to or with
respect to the Common Areas and the Project as Landlord may, in its sole discretion, deem to be
appropriate; provided, however that Landlord’s rights in subheadings (a) through (e) of this
sentence shall be subject to the condition that the exercise of

1

 

such rights (i) do not materially and permanently reduce the number of parking spaces provided
to Tenant in the Basic Lease Information, or (ii) materially and adversely impact Tenant’s use of
or access to the parking or the Building. Without limiting the foregoing, Landlord reserves the
right from time to time to install, use, maintain, repair, relocate and replace pipes, ducts,
conduits, wires, meters, and equipment for service to the Premises or to other parts of the
Building which are above the ceiling surfaces, below the floor surfaces, within the walls and in
the central core areas of the Building which are located within the Premises or located elsewhere
in the Building. Landlord shall use commercially reasonable efforts while conducting such
activities to minimize any interference with Tenant’s use of the Premises.

     No rights to any view or to light or air over any property, whether belonging to Landlord or
any other person, are granted to Tenant by this Lease. If at any time any windows of the Premises
are temporarily darkened or the light or view therefrom is obstructed, the same shall be without
liability to Landlord and without any reduction or diminution of Tenant’s obligations under this
Lease. Landlord shall have the absolute right at all times, including an emergency situation, to
limit, restrict, or prevent access to the Premises, the Building, and/or the Project in response to
an actual, suspected, perceived, or publicly or privately announced health or security threat.

     3. Term. The term of this Lease (the “Term”) shall be for the period of
months specified in the Basic Lease Information, commencing on the date that is the earliest of (i)
the Estimated Commencement Date, or (ii) substantial completion of the Tenant Improvements (the
“Commencement Date”). In the event the actual Commencement Date, as determined
pursuant to the foregoing, is a date other than the Estimated Commencement Date specified in the
Basic Lease Information, then Landlord and Tenant shall promptly execute a Commencement and
Expiration Date Memorandum in the form attached hereto as Exhibit C, wherein the
parties shall specify the Commencement Date, the date on which the Term expires (the
“Expiration Date”) and the date on which Tenant is to commence paying Rent.

     4. Rent.

          (a) Base Rent. Tenant shall pay to Landlord, in advance on the first day of each month,
without further notice or demand and without offset, rebate, credit or deduction for any reason
whatsoever, the monthly installments of rent specified in the Basic Lease Information (the
“Base Rent”).

     Upon execution of this Lease, Tenant shall pay to Landlord the Security Deposit, Prepaid Rent
and first monthly installment of estimated Additional Rent (as hereinafter defined) specified in
the Basic Lease Information to be applied toward Base Rent and Additional Rent for the month of the
Term specified in the Basic Lease Information.

          (b) Additional Rent. As used in this Lease, the term “Additional Rent” shall mean
all sums of money, other than Base Rent, that shall become due from and payable by Tenant pursuant
to this Lease. This Lease is intended to be a triple-net lease with respect to Landlord; subject
to Paragraph 13(b) below and except as otherwise expressly provided in this Lease, the Base Rent
owing hereunder is (i) to be paid by Tenant absolutely net of all costs and expenses relating to
Landlord’s ownership and operation of the Project and the Building, and (ii) not to be

2

 

reduced, offset or diminished, directly or indirectly, by any cost, charge or expense payable
hereunder by Tenant or by others in connection with the Premises, the Building and/or the Project,
or any part thereof. The provisions of this Paragraph 4(b) for the payment of Tenant’s
Proportionate Share(s) of Expenses (as hereinafter defined) are intended to pass on to Tenant,
Tenant’s Proportionate Share of all such costs and expenses relating to Landlord’s ownership and
operation of the Premises, the Building and/or the Project. Landlord may from time to time, at its
option, allocate and charge Expenses to an individual Building(s) or Tenant(s) in the Project in
its reasonable discretion.

     During the term, in addition to the Base Rent, Tenant shall pay to Landlord, in accordance
with this Paragraph 4, Tenant’s Proportionate Share(s) of all costs and expenses paid or incurred
by Landlord in connection with the ownership, operation, maintenance, management and repair of the
Premises, the Building and/or the Project or any part thereof, including, without limitation, all
the following items (collectively, the “Expenses”):

               (i) Taxes and Assessments. All real estate taxes and assessments, which shall include any
form of tax, assessment, fee, license fee, business license fee, levy, penalty (if a result of
Tenant’s delinquency), or tax (other than net income, estate, succession, inheritance, transfer or
franchise taxes), imposed by any authority having the direct or indirect power to tax, or by any
city, county, state or federal government or any improvement or other district or division thereof,
whether such tax is: (A) determined by the area of the Premises, the Building and/or the Project
or any part thereof, or the Rent and other sums payable hereunder by Tenant or by other tenants,
including, but not limited to, any gross income or excise tax levied by any of the foregoing
authorities with respect to receipt of Rent and/or other sums due under this Lease; (B) upon any
legal or equitable interest of Landlord in the Premises, the Building and/or the Project or any
part thereof; (C) upon this transaction or any document to which Tenant is a party creating or
transferring any interest in the Premises, the Building and/or the Project; (D) levied or assessed
in lieu of, in substitution for, or in addition to, existing or additional taxes against the
Premises, the Building and/or the Project, whether or not now customary or within the contemplation
of the parties; or (E) surcharged against the Premises, the Building or the Project. It is the
intention of the parties that all new and increased assessments, taxes, fees, levies and charges
due to any cause whatsoever are to be included within the definition of real property taxes for
purposes of this Lease. “Taxes and assessments” shall also include reasonable legal
and consultants’ fees, costs and disbursements incurred in connection with proceedings to contest,
determine or reduce taxes that Tenant would otherwise be required to reimburse Landlord for under
this Paragraph 4, Landlord specifically reserving the right, but not the obligation, to contest by
appropriate legal proceedings the amount or validity of any such taxes.

               (ii) Insurance. All insurance premiums for the Building and/or the Project or any part
thereof, including premiums for “all risk” fire and extended coverage insurance, commercial general
liability insurance, rent loss or abatement insurance, earthquake insurance, flood or surface water
coverage, and other insurance as Landlord deems necessary in its reasonable discretion, and any
deductibles paid under policies of any such insurance; provided, however, that with respect to any
particular casualty event affecting the Project, in no event shall Tenant’s Proportionate Share any
individual insurance deductible under Landlord’s casualty insurance exceed an amount equal to
Thirty Thousand Dollars ($30,000.00).

3

 

               (iii) Utilities. The cost of all Utilities (as hereinafter defined) serving the Premises, the
Building and the Common Areas that are not separately metered to Tenant, any assessments or charges
for Utilities or similar purposes included within any tax bill for the Building or the Common
Areas, including, without limitation, entitlement fees, allocation unit fees, and/or any similar
fees or charges and any penalties (if a result of Tenant’s delinquency) related thereto, and any
amounts, taxes, charges, surcharges, assessments or impositions levied, assessed or imposed upon
the Premises, the Building or the Common Areas or any part thereof, or upon Tenant’s use and
occupancy thereof, as a result of any rationing of Utility services or restriction on Utility use
affecting the Premises, the Building and/or the Common Areas, as contemplated in Paragraph 5 below
(collectively, “Utility Expenses”).

               (iv) Common Area Operating Expenses. All costs to operate, maintain, repair, replace,
supervise, insure and administer the Common Areas, including supplies, materials, labor and
equipment used in or related to the operation and maintenance of the Common Areas, including
parking areas (including, without limitation, all costs of resurfacing and restriping parking
areas), signs and directories on the Building and/or the Project, landscaping (including
maintenance contracts and fees payable to landscaping consultants), amenities, sprinkler systems,
sidewalks, walkways, driveways, curbs, lighting systems and security services, if any, provided by
Landlord for the Common Areas, and any charges, assessments, costs or fees levied by any
association or entity of which the Project or any part thereof is a member or to which the Project
or any part thereof is subject.

               (v) Parking Charges. Any parking charges or other costs levied, assessed or imposed by, or at
the direction of, or resulting from statutes or regulations, or interpretations thereof,
promulgated by any governmental authority or insurer in connection with the use or occupancy of the
Building or the Project.

               (vi) Maintenance and Repair Costs. Except for costs which are the responsibility of Landlord
pursuant to Paragraph 13(b) below, all costs to maintain, repair, and replace the Premises, the
Building and/or the Project or any part thereof, including, without limitation, (A) all costs paid
under maintenance, management and service agreements such as contracts for janitorial, security and
refuse removal, (B) all costs to maintain, repair and replace the roof coverings of the Building or
the Project or any part thereof, (C) all costs to maintain, repair and replace the Project’s common
heating, ventilating, air conditioning, plumbing, gas, sewer, drainage, electrical, fire protection
and life safety systems and other mechanical and electrical systems and equipment (collectively,
“Systems”), (D) the cost of maintenance, depreciation and replacement of machinery,
tools and equipment (if owned by Landlord) and for rental paid for such machinery, tools and
equipment (if rented) used in connection with the operation or maintenance of the Building, and (E)
costs for improvements made to the Project which, although capital in nature, Landlord determines,
in its sole discretion, are necessary to enhance and improve security at the Project.

               (vii) Life Safety and Security Costs. All costs to install, maintain, repair and replace all
life safety systems, including, without limitation, (A) all fire alarm systems, serving the
Premises, the Building and/or the Project or any part thereof (including all maintenance contracts
and fees payable to life safety consultants) whether such systems are or shall be required by
Landlord’s insurance carriers, Laws (as hereinafter defined) or otherwise, and (B) all

4

 

costs of security and security systems at the Project, including, without limitation, (1)
wages and salaries (including management fees) of all employees engaged in the security of the
Project; (2) all supplies, materials, equipment, and devices used in the security of the Project,
and any upgrades thereto; and (3) all service or maintenance contracts with independent contractors
for Project security, including, without limitation, alarm service personnel, security guards,
watchmen, and any other security personnel.

               (viii) Management and Administration. All costs for management and administration of the
Premises, the Building and/or the Project or any part thereof, including, without limitation, a
property management fee (provided, however, that in no event shall Tenant’s Proportionate Share of
any management fee exceed three percent (3%) of the Building’s gross receipts), accounting,
auditing, billing, postage, salaries and benefits for all employees and contractors engaged in the
management, operation, maintenance, repair and protection of the Building and the Project, whether
located on the Project or off-site, payroll taxes and legal and accounting costs, and fees for
licenses and permits related to the ownership and operation of the Project, and office rent for the
Building and/or the Project management office or the rental value of such office if it is located
within the Building and/or the Project.

               (ix) Capital Improvements. Amounts paid for capital improvements or other costs incurred in
connection with the Project (A) which are intended to effect economies in the operation or
maintenance of the Project, or any portion thereof, (B) that are required to comply with present or
anticipated conservation programs, (C) which are replacements or modifications of structural or
nonstructural items located in the Common Areas, (D) that are required under any governmental law
or regulation which goes into effect after the Commencement Date, (E) which Landlord determines, in
its reasonable discretion are necessary to enhance and improve security at the Project. All such
capital improvements and costs must be capitalized by Landlord under generally accepted real estate
accounting principles and the amortized portion of such cost passed through to Tenant pursuant to
the next paragraph.

          Notwithstanding anything in this Paragraph 4(b) to the contrary, with respect to all sums
payable by Tenant as Additional Rent under this Paragraph 4(b) for the replacement of any item or
the construction of any new item in connection with the physical operation of the Premises, the
Building or the Project (e.g., roof membrane or coverings and parking area) which is a capital item
the replacement of which would be capitalized under Landlord’s commercial real estate accounting
practices, Tenant shall be required to pay only Tenant’s Proportionate Share of the cost of the
item falling due within the Term (including any Renewal Term) based upon the amortization of the
same over the useful life of such item, as reasonably determined by Landlord.

               (x) Expense Adjustment Deadline. “Expense Adjustment Deadline” means the date
which is fifteen (15) months after the Expiration Date or earlier termination date of this Lease.
Notwithstanding anything to the contrary contained in this Lease, Tenant shall have no obligation
to pay any Expenses to Landlord which are first billed by Landlord after the Expense Adjustment
Deadline; provided, however, that nothing contained herein shall be deemed to relieve Tenant from
its liability to pay Tenant’s Proportionate Share of Expenses under this Lease which were billed by
Landlord prior to the Expense Adjustment Deadline. Similarly,

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Landlord shall have no obligation to return, rebate or credit to Tenant any refund, rebate, or
return of Expenses received by Landlord after the Expense Adjustment Deadline.

               (xi) Cap on Controllable Expenses. “Controllable Expenses” mean Expenses other
than Taxes and assessments, Insurance and Utilities. Commencing as of January 2011 and continuing
through the remainder of the Term, Tenant shall not be required to pay for any calendar year any
Controllable Expenses that exceed the aggregate Controllable Expenses incurred by Landlord in, or
otherwise attributable to, the calendar year 2010 (the “Cap Year”) as increased
thereafter by an annually cumulative compounded five percent (5%). Additionally, in no event shall
the Controllable Expenses during the Cap Year exceed by more than five percent (5%) the estimated
Controllable Expenses for the Cap Year. For example, in the event Controllable Expenses were $100
during the calendar year 2010, then Tenant would have no liability for Controllable Expenses in
excess of $110.25 for the calendar year 2012. If Tenant exercises the Option as set forth in
Paragraph 49, then the Cap Year shall be reset to be the first calendar year within the Extension
Term (i.e. calendar year 2015) and Tenant shall not be required to pay for any calendar year
thereafter any Controllable Expenses that exceed the aggregate Controllable Expenses incurred by
Landlord in, or otherwise attributable to, the calendar year 2015 as increased thereafter by an
annually compounded five percent (5%). For the avoidance of doubt, nothing contained herein shall
limit in any way Tenant’s liability for Taxes and assessments, Insurance and Utilities.

          (c) Exclusions from Expenses. Notwithstanding anything to the contrary contained in Paragraph
4(b), Expenses shall not include the following (the “Expense Exclusions”):

               (i) Any costs or expenses that are not attributable to the Common Areas or the Project as a
whole and are properly attributable solely to the other building located within the Project;

               (ii) The cost of damage and repairs necessitated by the gross negligence or willful misconduct
of Landlord or of Landlord’s agents, employees, contractors or invitees;

               (iii) Any cost or expense incurred by reason of the remediation or clean-up of any
contamination of the Building or the Project, or the soils or ground water underlying the Building
or the Project, by Hazardous Materials, except to the extent such contamination results from
Tenant’s activities or except for de minimus amounts of Hazardous Materials commonly encountered in
connection with the operation and ownership of commercial property (e.g. the clean-up of automotive
oil leaks in the Parking Areas);

               (iv) Expenses in connection with services or other benefits which are not offered to Tenant or
for which Tenant is charged for directly but which are provided to another tenant or occupant of
the Project;

               (v) Costs incurred in connection with upgrading the Building to comply with disability, life,
fire and safety codes, ordinances, statutes, or other laws in effect prior to the Commencement
Date, including, without limitation, the ADA, including penalties or damages incurred due to such
non-compliance;

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               (vi) Any ground lease rental or any interest, principal, points and fees on debts or
amortization on any mortgage or mortgages or any other debt instrument encumbering the Project or
any portion thereof;

               (vii) Cost of any capital improvements not specifically provided for above in Paragraph
4(b)(ix);

               (viii) Overhead costs and profit increment paid to subsidiaries or affiliates of Landlord for
services on or for the Building or the Project, to the extent only that the cost of such services
exceed competitive costs of such services were they not so rendered by a subsidiary or affiliate;

               (ix) Costs of any items (including, but not limited to, costs incurred by Landlord for the
repair of damage to the Project or for items which are reimbursable under any contractor,
manufacturer or supplier warranty), to the extent Landlord receives such reimbursement;

               (x) Legal fees, brokerage commissions, advertising costs, or other related expenses incurred
in connection with the leasing of the Building or the Project or with the enforcement of Landlord’s
title to or interest in the Building or the Project or any part thereof;

               (xi) Executive salaries or salaries of service personnel to the extent that such executives or
service personnel perform services other than in connection with the management, operation, repair
or maintenance of the Building or the Project; and

               (xii) Landlord’s general corporate overhead and general and administrative expenses not
related to the Building or Project.

          (d) Payment of Additional Rent.

               (i) Upon commencement of this Lease, Landlord shall submit to Tenant an estimate of monthly
Additional Rent for the period between the Commencement Date and the following December 31 and
Tenant shall pay such estimated Additional Rent on a monthly basis, in advance, on the first day of
each month. Tenant shall continue to make said monthly payments until notified by Landlord of a
change therein. If at any time or times Landlord reasonably determines that the amounts payable
under Paragraph 4(b) for the current Computation Year will vary from Landlord’s estimate given to
Tenant, Landlord, by notice to Tenant, may revise the estimate for such year, and subsequent
payments by Tenant for such year shall be based upon such revised estimate; provided that Landlord
shall not adjust the estimated monthly payments of Additional Rent more than one time in any
calendar year. By April 1 of each calendar Year following the initial Computation Year, Landlord
shall endeavor to provide to Tenant a statement showing the actual Additional Rent due to Landlord
for the prior Computation Year, to be prorated during the first year from the Commencement Date.
Such statement shall be certified by Landlord’s authorized representative showing: (A) the amount
of the actual Expenses for the preceding calendar year, with a breakdown of amounts by major
categories of the Expenses; (B) the amounts paid by Tenant toward the estimated Expenses during the
preceding calendar year; and (C) any applicable limitation under this Paragraph 4. If the total of
the monthly payments of Additional Rent that Tenant has made for the prior Computation Year is less
than the actual Additional Rent chargeable to Tenant for such prior

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Computation Year, then Tenant shall pay the difference in a lump sum within ten (10) days
after receipt of such statement from Landlord. Any overpayment by Tenant of Additional Rent for
the prior calendar year shall be credited towards the Additional Rent next due or returned to
Tenant in a lump sum payment within ten (10) days after delivery of such statement.

               (ii) Landlord’s then-current annual operating and capital budgets for the Building and the
Project or the pertinent part thereof shall be used for purposes of calculating Tenant’s monthly
payment of estimated Additional Rent for the current year, subject to adjustment as provided above.
Landlord shall make the final determination of Additional Rent for the year in which this Lease
terminates as soon as possible after the end of such year. Even though the Term has expired and
Tenant has vacated the Premises, Tenant shall remain liable for payment of any amount due to
Landlord in excess of the estimated Additional Rent previously paid by Tenant, and, conversely,
Landlord shall promptly return to Tenant any overpayment. Failure of Landlord to submit statements
as called for herein shall not be deemed a waiver of Tenant’s obligation to pay Additional Rent as
herein provided.

               (iii) With respect to Expenses which Landlord allocates to the Building, Tenant’s
“Proportionate Share” shall be the percentage set forth in the Basic Lease Information
as Tenant’s Proportionate Share of the Building, as adjusted by Landlord from time to time for a
remeasurement of or changes in the physical size of the Premises or the Building, whether such
changes in size are due to an addition to or a sale or conveyance of a portion of the Building or
otherwise. With respect to Expenses which Landlord allocates to the Project as a whole or to only
a portion of the Project, Tenant’s “Proportionate Share” shall be with respect to expenses which
Landlord allocates to the entire Project, the percentage set forth in the Basic Lease Information
as Tenant’s Proportionate Share of the Project and, with respect to Expenses which Landlord
allocates to only a portion of the Project, a percentage calculated by Landlord from time to time
in its reasonable discretion and furnished to Tenant in writing, in either case as adjusted by
Landlord from time to time for a remeasurement of or changes in the physical size of the Premises
or the Project, whether such changes in size are due to an addition to or a sale or conveyance of a
portion of the Project or otherwise. Notwithstanding the foregoing, Landlord may equitably adjust
Tenant’s Proportionate Share(s) for all or part of any item of expense or cost reimbursable by
Tenant that relates to a repair, replacement, or service that benefits only a portion of the
Project or that varies with the occupancy of the Project. Landlord shall have the right to adjust
Tenant’s Proportionate Share(s) of any Utility Expenses based upon Tenant’s use of the Utilities or
similar services as reasonably estimated and determined by Landlord based upon factors such as size
of the Premises and intensity of use of such Utilities by Tenant such that Tenant shall pay the
portion of such charges reasonably consistent with Tenant’s use of such Utilities and other
services and costs. If Tenant disputes any such estimate or determination of Utility Expenses,
then Tenant shall either pay the estimated amount or cause the Premises to be separately metered at
Tenant’s sole expense.

               (iv) In the event the average occupancy level of the Building or the Project is not one
hundred percent (100%), then the Expenses shall be adjusted by Landlord to reflect those costs
which would have incurred had the Building or the Project, as applicable, been one hundred percent
(100%) occupied during such year. Landlord agrees that since one of the purposes of Expenses and
the gross up provision is to allow Landlord to require Tenant to pay for the costs attributable to
its Premises, Landlord agrees that (A) Landlord will not collect or be

8

 

entitled to collect Expenses from all of its tenants in an amount which is in excess of one
hundred percent (100%) of the Expenses actually paid by Landlord in connection with the operation
of the Building and the Project, and (B) Landlord shall make no profit from Landlord’s collections
of Expenses.

               (v) Landlord reserves the right from time to time to remeasure the Premises, the Building
and/or the Project in accordance with the current or revised generally accepted measurement
standards utilized by Landlord and to thereafter adjust the Proportionate Share(s) of Tenant and
any other affected tenants of the Building and/or the Project.

          (e) General Payment Terms. The Base Rent, Additional Rent and all other sums payable by
Tenant to Landlord hereunder, including, without limitation, any late charges assessed pursuant to
Paragraph 6 below and any interest assessed pursuant to Paragraph 45 below, are referred to as the
“Rent.” Except as expressly set forth in this Lease, all Rent shall be paid without
deduction, offset or abatement in lawful money of the United States of America and through a
domestic branch of a United States financial institution, by check or electronic payment. Checks
are to be made payable to “Kifer Tech Investors, LLC” and shall be mailed to: Kifer Tech
Investors LLC, CBRE — #7945, P.O. Box 82551, Goleta, California 93118-2551 or to such other person
or place as Landlord may, from time to time, designate to Tenant in writing. Wiring instructions
for electronic payments will be provided separately. Rent for any fractional part of a calendar
month at the commencement or termination of the Lease term shall be a prorated amount of the Rent
for a full calendar month based upon a thirty (30) day month.

          (f) Statements Binding. Every statement given by Landlord pursuant to Paragraph 4(d)(i) of
this Paragraph 4 shall be conclusive and binding upon Tenant unless (i) within three (3) years
after the receipt of such statement Tenant shall notify Landlord that it disputes the correctness
thereof, specifying the particular respects in which the statement is claimed to be incorrect, and
(ii) if such dispute shall not have been settled by agreement, Tenant shall submit the dispute to
binding arbitration within three (3) years after receipt of the statement. Pending the
determination of such dispute by agreement or binding arbitration as aforesaid, Tenant shall,
within ten (10) days after receipt of such statement, pay Additional Rent in accordance with
Landlord’s statement and such payment shall be without prejudice to Tenant’s position. If the
dispute shall be determined in Tenant’s favor, Landlord shall forthwith pay Tenant the amount of
Tenant’s overpayment of Additional Rent resulting from compliance with Landlord’s statement.

          (g) Audit Rights. Provided that Tenant notifies Landlord in accordance with the terms of
Paragraph 4(f) above that Tenant disputes a statement received from Landlord, Tenant or its CPA (as
defined below) shall have the right, at Tenant’s sole cost and expense, provided that Tenant
utilizes a Certified Public Accountant (the “CPA”) that is not compensated on a
contingency basis, upon at least thirty (30) days’ prior notice to Landlord at any time during
regular business hours to audit, review and photocopy Landlord’s records pertaining to Expenses for
the immediately previous three (3) calendar years of the Term. Tenant shall complete the audit and
present any disputed charges to Landlord, in writing, within three (3) months of commencing such
audit. If Tenant fails to complete the audit and present any disputed charges to Landlord within
the foregoing three (3) month period, then Tenant shall forfeit any rights to claim a refund,
rebate, or return of the Expenses set forth in the statement. If, following

9

 

Landlord’s receipt of
the audit and any disputed charges (the “Report Date”), Landlord disputes
the findings contained therein, and Landlord and Tenant are not able to resolve their
differences within thirty (30) days following the Report Date, the dispute shall be resolved by
binding arbitration as follows: Landlord and Tenant shall each designate an independent certified
public accountant, which shall in turn jointly select a third independent Certified Public
Accountant (the “Third CPA”). The Third CPA, within thirty (30) days of selection,
shall, at Tenant’s sole expense, audit the relevant records and certify the proper amount within.
That certification shall be final and conclusive. If the Third CPA determines that the amount of
Expenses billed to Tenant was incorrect, the appropriate party shall pay to the other party the
deficiency or overpayment, as applicable, within thirty (30) days following delivery of the Third
Party CPA’s decision, without interest. Tenant agrees to keep all information thereby obtained by
Tenant confidential and to obtain the agreement of its CPA and Third CPA to keep all such
information confidential. Tenant shall provide a copy of such CPA agreements to Landlord promptly
upon request. Notwithstanding anything herein to the contrary, if such certification by the Third
CPA indicates that a refund owing Tenant exceeds the aggregate amount properly payable by Tenant
pursuant to the terms of this Lease by five percent (5%) or more, then Landlord shall reimburse
Tenant at such time any reasonable out-of-pocket audit expenses.

     5. Utility Expenses.

          (a) Tenant shall pay the cost of all water, sewer use, sewer discharge fees, permit costs,
sewer connection fees, gas, water, heat, electricity, refuse pick-up, janitorial service, telephone
and all materials and services or other utilities (collectively, “Utilities”) billed or
metered separately to the Premises and/or Tenant, together with all taxes, assessments, charges and
penalties added to or included within such cost. Tenant shall also be directly responsible for any
nonstandard usage of electricity. The Premises, the Building and/or the Project may become subject
to the rationing of Utility services or restrictions on Utility use as required by a public utility
company, governmental agency or other similar entity having jurisdiction thereof, and Tenant’s
occupancy hereunder shall be subject to such rationing or restrictions as may be imposed upon
Landlord, Tenant, the Premises, the Building and/or the Project. Tenant shall in no event be
excused or relieved from any covenant or obligation to be kept or performed by Tenant by reason of
any such rationing or restrictions. Tenant shall comply with energy conservation programs
implemented by Landlord by reason of rationing, restrictions or Laws.

          (b) Landlord shall not be liable for any loss, injury or damage to property caused by or
resulting from any variation, interruption, or failure of Utilities due to any cause whatsoever, or
from failure to make any repairs or perform any maintenance. No temporary interruption or failure
of such services incident to the making of repairs, alterations, improvements, or due to accident,
strike, or conditions or other events shall be deemed an eviction of Tenant or relieve Tenant from
any of its obligations hereunder. In no event shall Landlord be liable to Tenant for any damage to
the Premises or for any loss, damage or injury to any property therein or thereon occasioned by
bursting, rupture, leakage or overflow of any plumbing or other pipes (including, without
limitation, water, steam, and/or refrigerant lines), sprinklers, tanks, drains, drinking fountains
or washstands, or other similar cause in, above, upon or about the Premises, the Building, or the
Project. Tenant hereby waives the provisions of California Civil Code Section 1932(1) or any other
applicable Laws permitting the termination of this Lease due to such failure or interruption.

10

 

          (c) Landlord makes no representation with respect to the adequacy or fitness of the
air-conditioning, insulation, or ventilation equipment in the Building to maintain temperatures
which may be required for, or because of, any equipment of Tenant or occupancy level. Landlord
shall have no liability for loss or damage in connection therewith. Any supplementary
air-conditioning, insulation, or ventilation equipment required for Tenant’s needs shall be at
Tenant’s sole expense.

          (d) Without limiting the terms of Paragraph 5(a) above, Landlord has contracted with Pacific
Gas & Electric Company to provide electricity for the Building, and Landlord reserves the right to
change the provider of such service at any time and from time to time in Landlord’s sole discretion
(any such provider being referred to herein as the “Electric Service Provider”);
provided that if Landlord elects to switch the Electric Service Provider, it must select one that
provides electricity at commercially competitive prices and with a high level of service in
providing a consistent level of electrical output with rare interruptions. Tenant shall obtain and
accept electrical service for the Premises only from and through Landlord, in the manner and to the
extent expressly provided in this Lease, at all times during the Term of this Lease, and Tenant
shall have no right (and hereby waives any right Tenant may otherwise have) (i) to contract with or
otherwise obtain any electrical service for or with respect to the Premises or Tenant’s operations
therein from any provider of electrical service other than the Electric Service Provider, or (ii)
to enter into any separate or direct contract or other similar arrangement with the Electric
Service Provider for electrical service to Tenant at the Premises. Tenant shall cooperate with
Landlord and the Electric Service Provider at all times to facilitate the delivery of electrical
service to Tenant at the Premises and to the Building, including, without limitation, allowing
Landlord and the Electric Service Provider, and their respective agents, employees, and
contractors, (A) to install, repair, replace, improve and remove any and all electric lines,
feeders, risers, junction boxes, wiring, and other electrical equipment, machinery and facilities
now or hereafter located within the Building or the Premises for the purpose of providing
electrical service to or within the Premises or the Building, and (B) reasonable access for the
purpose of maintaining, repairing, replacing or upgrading such electrical service from time to
time. Tenant shall provide such information and specifications regarding Tenant’s use or projected
use of electricity at the Premises as shall be required from time to time by Landlord or the
Electric Service Provider to efficiently provide electrical service to the Premises or the
Building. In no event shall Landlord be liable or responsible for any loss, damage, expense or
liability, including, without limitation, loss of business or consequential damages, arising from
any failure or inadequacy of the electrical service being provided to the Premises or the Building,
whether resulting from any change, failure, interference, disruption, or defect in the supply or
character of the electrical service furnished to the Premises or the Building, or arising from the
partial or total unavailability of electrical service to the Premises or the Building, from any
cause whatsoever, or otherwise, nor shall any such failure, inadequacy, change, interference,
disruption, defect or unavailability constitute an actual or constructive eviction of Tenant, or
entitle Tenant to any abatement or diminution of Rent or otherwise relieve Tenant from any of its
obligations under this Lease.

     6. Late Charge. Late payment to Landlord of Rent, or other amounts due hereunder
will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will
be extremely difficult to ascertain. If any Rent or other sums due from Tenant are not received by
Landlord or by Landlord’s designated agent when due and such failure continues for

11

 

five (5) days after written notice from Landlord to Tenant, or if for a second or subsequent
time in any calendar year Tenant fails to pay any Rent when due, then Tenant shall pay to Landlord
a late charge equal to five percent (5%) of such overdue amount, plus any costs and attorneys’ fees
incurred by Landlord by reason of Tenant’s failure to pay Rent and/or other charges when due. Such
late charges represent a fair and reasonable estimate of the cost that Landlord will incur by
reason of Tenant’s late payment and shall not be construed as a penalty. Landlord’s acceptance of
such late charges shall not constitute a waiver of Tenant’s default with respect to such overdue
amount or estop Landlord from exercising any of the other rights and remedies granted under this
Lease.

     7. Security Deposit. Concurrently with Tenant’s execution of the Lease, Tenant shall
deposit with Landlord the Security Deposit specified in the Basic Lease Information as security for
Tenant’s full and faithful performance of this Lease. Landlord may use, apply or retain the whole
or any part of the Security Deposit as may be reasonably necessary (a) to remedy Tenant’s Default
in the payment of any Rent, (b) to repair damage to the Premises caused by Tenant if Tenant fails
to repair such damage within the cure period set forth in Paragraph 24(a), (c) to perform Tenant’s
obligations under Paragraph 11, if Tenant fails to do so, (d) to reimburse Landlord for the payment
of any amount which Landlord may reasonably spend or be required to spend by reason of Tenant’s
Default, or (e) to compensate Landlord for any other loss or damage which Landlord may suffer by
reason of Tenant’s Default, including, without limitation, future rent and all other damages
recoverable pursuant to California Civil Code Section 1951.2. Tenant waives the provisions of
California Civil Code Section 1950.7, and all other provisions of law now in force or that become
in force after the date of execution of this Lease, that restrict Landlord’s use or application of
the Security Deposit or that provide specific time periods for return of the Security Deposit.
Without limiting the generality of the foregoing, Tenant expressly agrees that if Landlord
terminates this Lease due to Tenant’s Default or if Tenant terminates this Lease in a bankruptcy
proceeding, Landlord shall be entitled to hold the Security Deposit until the amount of damages
recoverable pursuant to California Civil Code Section 1951.2 is finally determined. If Tenant
faithfully and fully complies with this Lease, within thirty (30) days following the expiration of
the Term, the Security Deposit or any balance thereof shall be returned to Tenant or, at the option
of Landlord, to the last assignee of Tenant’s interest in this Lease. Landlord shall not be
required to keep the Security Deposit separate from its general funds, and Tenant shall not be
entitled to any interest on such deposit. If Landlord so uses or applies all or any portion of
said deposit, within five (5) days after written demand therefor Tenant shall deposit cash with
Landlord in an amount sufficient to restore the Security Deposit to the full extent of the above
amount, and Tenant’s failure to do so shall be a default under this Lease. If Landlord transfers
its interest in this Lease, Landlord shall transfer the then remaining amount of the Security
Deposit to Landlord’s successor in interest, and thereafter Landlord shall have no further
liability to Tenant with respect to such Security Deposit. Tenant hereby waives any and all rights
under and the benefits of Section 1950.7 of the California Civil Code, and all other provisions of
law now in force or that become in force after the date of execution of this Lease, that provide
that Landlord may claim from a security deposit only those sums reasonably necessary to remedy
defaults in the payment of Rent, to repair damage caused by Tenant, or to clean the Premises.
Landlord and Tenant agree that Landlord may, in addition, claim those sums reasonably necessary to
compensate Landlord for any other foreseeable or unforeseeable loss or damage caused by the act or
omission of Tenant or Tenant’s officers,

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agents, employees, independent contractors, or invitees which a court would award Landlord as
damages for such Default by Tenant.

     8. Possession.

          (a) Tenant’s Right of Possession. Tenant shall be permitted to enter upon the Premises within
three (3) days following mutual execution hereof, at all reasonable times for the sole purpose of
constructing the Tenant Improvements and otherwise readying the Premises for Tenant’s occupancy;
provided, however, that prior to any such entry, Tenant shall provide Landlord with proof of
Tenant’s insurance as set forth in Paragraph 15 below. Such entry upon the Premises shall be
subject to all of the provisions of this Lease, except that Tenant shall not be required to pay
Base Rent or Expenses until the Commencement Date as set forth in Paragraph 3 above. Landlord
shall not be liable in any way for any injury, loss or damage which may occur to any such work
being performed by Tenant, the same being solely at Tenant’s risk. In no event shall the failure
of Tenant’s contractors to complete any work in the Premises delay the Commencement Date of this
Lease.

          (b) Delay in Delivering Possession. If for any reason whatsoever, Landlord cannot deliver
possession of the Premises to Tenant as provided in Paragraph 8(a), this Lease shall not be void or
voidable, nor shall Landlord, or Landlord’s agents, advisors, employees, partners, shareholders,
directors, invitees, independent contractors, or Landlord’s Manager or Investment Adviser
(collectively, “Landlord’s Agents”), be liable to Tenant for any loss or damage
resulting therefrom but the Commencement Date shall be extended by each day Landlord is delayed in
delivering the Premises to Tenant in accordance with Paragraph 8(a).

     9. Use of Premises.

          (a) Permitted Use. The use of the Premises by Tenant and Tenant’s agents, advisors,
employees, partners, shareholders, directors, invitees and independent contractors (collectively,
“Tenant’s Agents”) shall be solely for the Permitted Use specified in the Basic Lease
Information and for no other use. Tenant shall not permit any objectionable or unpleasant odor,
smoke, dust, gas, noise or vibration to emanate from or near the Premises. The Premises shall not
be used to create any nuisance or trespass, for any illegal purpose, for any purpose not permitted
by Laws (as hereinafter defined), for any purpose that would invalidate the insurance or increase
the premiums for insurance on the Premises, the Building or the Project or for any purpose or in
any manner that would interfere with other tenants’ use or occupancy of the Project. If any of
Tenant’s machines or equipment disturb any other tenant in the Building, then Tenant shall provide
adequate insulation or take such other action as may be necessary to eliminate the noise or
disturbance. Tenant shall pay to Landlord, as Additional Rent, any increases in premiums on
policies resulting from Tenant’s Permitted Use or any other use or action by Tenant or Tenant’s
Agents which increases Landlord’s premiums or requires additional coverage by Landlord to insure
the Premises. Tenant agrees not to overload the floor(s) of the Building.

          (b) Compliance with Governmental Regulations and Private Restrictions. Tenant and Tenant’s
Agents shall, at Tenant’s expense, faithfully observe and comply with (i) all municipal, state and
federal laws, statutes, codes, rules, regulations, ordinances, requirements, and orders
(collectively, “Laws”), now in force or which may hereafter be in force pertaining to

13

 

the Premises or Tenant’s use of the Premises, the Building or the Project, including, without
limitation, any Laws requiring installation of fire sprinkler systems, seismic reinforcement and
related alterations, and removal of asbestos, whether substantial in cost or otherwise; provided,
however, that except as provided in Paragraph 9(c) below, Tenant shall not be required to make or,
except as provided in Paragraph 4 above, pay for, structural changes to the Premises or the
Building not related to Tenant’s specific use of the Premises unless the requirement for such
changes is imposed as a result of any improvements or additions made or proposed to be made at
Tenant’s request; (ii) all recorded covenants, conditions and restrictions affecting the Project
(“Private Restrictions”) which may hereafter be in force, provided that Landlord shall
not voluntarily agree to any new Private Restrictions which adversely impact Tenant’s rights under
this Lease; and (iii) any and all rules and regulations set forth in Exhibit D and any
other reasonable rules and regulations now or hereafter promulgated by Landlord related to parking
or the operation of the Premises, the Building and/or the Project (collectively, the “Rules
and Regulations”), provided Landlord shall not impose any new Rules and Regulations which
adversely impact Tenant’s rights under this Lease. The judgment of any court of competent
jurisdiction, or the admission of Tenant in any action or proceeding against Tenant, whether
Landlord be a party thereto or not, that Tenant has violated any such Laws or Private Restrictions,
shall be conclusive of that fact as between Landlord and Tenant.

          (c) Compliance with Americans with Disabilities Act. The Premises, the Building and/or the
Project may be subject to, among other Laws, the requirements of the Americans with Disabilities
Act, 42 U.S.C. § 12101 et seq., including, but not limited to, Title III thereof, and all
regulations and guidelines related thereto, together with any and all laws, rules, regulations,
ordinances, codes and statutes now or hereafter enacted by local or state agencies having
jurisdiction thereof, including, without limitation, all requirements of Title 24 of the State of
California Code, as the same may be in effect on the date of this Lease and may be hereafter
modified, amended or supplemented (collectively, the “ADA”). Any Tenant Improvements
to be constructed hereunder shall comply with the ADA, and all costs incurred to comply therewith
shall be a part of and included in the cost of the Tenant Improvements. Tenant shall be solely
responsible for conducting its own independent investigation of these requirements and for ensuring
that the design of all Tenant Improvements strictly complies with all requirements of the ADA.
Subject to possible reimbursement in accordance with Paragraph 4 above, if any barrier removal work
or other work is required to the Building, the Common Areas or the Project under the ADA, then such
work shall be the responsibility of Landlord; provided that, if such work is required under the ADA
as a result of Tenant’s use of the Premises or any work or Alteration (as hereinafter defined) made
to the Premises by or on behalf of Tenant, then such work shall be performed by Landlord at the
sole cost and expense of Tenant.

     Except as otherwise expressly provided in this Lease, Tenant shall be responsible at its sole
cost and expense for fully and faithfully complying with all applicable requirements of the ADA,
including, without limitation, not discriminating against any disabled persons in the operation of
Tenant’s business in or about the Premises, and offering or otherwise providing auxiliary aids and
services as, and when, required by the ADA. Within ten (10) days after receipt, Tenant shall
advise Landlord in writing, and provide Landlord with copies of (as applicable), any notices
alleging violation of the ADA relating to any portion of the Premises, the Building or the Project;
any claims made or threatened orally or in writing regarding noncompliance with the ADA and
relating to any portion of the Premises, the Building, or the Project; or any governmental or

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regulatory actions or investigations instituted or threatened regarding noncompliance with the
ADA and relating to any portion of the Premises, the Building or the Project. Tenant shall and
hereby agrees to protect, defend (with counsel acceptable to Landlord) and hold Landlord and
Landlord’s Agents harmless and indemnify Landlord and Landlord’s Agents from and against all
liabilities, damages, claims, losses, penalties, judgments, charges and expenses (including
attorneys’ fees, costs of court and expenses necessary in the prosecution or defense of any
litigation including the enforcement of this provision) arising from or in any way related to,
directly or indirectly, Tenant’s or Tenant’s Agents’ violation or alleged violation of the ADA.
Tenant agrees that the obligations of Tenant herein shall survive the expiration or earlier
termination of this Lease.

          (d) Roof Access. Tenant, at its sole cost and expense, shall have the non-exclusive right (it
being understood that Landlord may grant, extend or renew similar rights to others) to install,
maintain, and from time to time replace a satellite dish, antenna or similar telecommunications
equipment (“Rooftop Equipment”) on the roof of the Building, provided that (a) Tenant
shall (i) prior to commencing any installation or maintenance, obtain Landlord’s prior approval of
the proposed size, weight and location of the Rooftop Equipment and method for fastening the
Rooftop Equipment to the roof, (ii), use the Rooftop Equipment solely for its internal use, (iii)
not grant any right to use of the Rooftop Equipment to any other party, and (iv) obtain and
maintain in effect, at Tenant’s sole cost and expense, any necessary federal, state, and municipal
permits, licenses and approvals, and deliver copies thereof to Landlord and that (b) such
installation and/or replacement shall comply strictly with all Laws and the conditions of any bond
or warranty maintained by Landlord on the roof. Landlord may supervise or perform any roof
penetration related to the installation of a Rooftop Equipment, and Landlord may charge the cost
thereof to Tenant. Tenant agrees that all installation, construction and maintenance shall be
performed in a neat, responsible, and workmanlike manner, using generally acceptable construction
standards, consistent with such reasonable requirements as shall be imposed by Landlord. Tenant
further agrees to label each cable or wire placed by Tenant in the telecommunications pathways of
the Building, with identification information as required by Landlord. Tenant shall repair any
damage to the Building caused by Tenant’s installation, maintenance, replacement, use or removal of
the Rooftop Equipment. The Rooftop Equipment shall remain the property of Tenant, and Tenant may
remove the Rooftop Equipment at its cost at any time during the Term, after five (5) days’ written
notice to Landlord. Tenant shall remove the Rooftop Equipment at Tenant’s cost and expense upon
the expiration or termination of this Lease. Tenant agrees that the Rooftop Equipment, and any
wires, cables or connections relating thereto, and the installation, maintenance and operation
thereof shall in no way interfere with the use and enjoyment of the Building, or the operation of
communications (including, without limitation, other satellite dishes) or computer devices by
Landlord or by other current tenants or occupants of the Project. If such interference shall
occur, Landlord shall give Tenant written notice thereof and Tenant shall correct the same within
twenty-four (24) hours of receipt of such notice. Landlord reserves the right to disconnect power
to any Rooftop Equipment if Tenant fails to correct such interference within twenty-four (24) hours
after such notice. Additionally, Landlord shall require any new occupant of the Project that is
permitted rooftop communication facility rights to cooperate with Tenant in adopting commercially
reasonable measures to ensure the mutual compatibility between the operation of such facilities and
the operation of Tenant’s Rooftop Equipment. If, notwithstanding the commercially reasonable
efforts of Tenant and such other occupant of the Project to prevent the same, such new occupant’s
rooftop facilities

15

 

materially interfere with Tenant’s operation of its Rooftop Equipment, then Landlord shall
cause such other occupant of the Project to discontinue the use of such rooftop facilities, unless
and until such facilities may be operated without material interference with Tenant’s operation of
its Rooftop Equipment. Landlord makes no warranty or representation that the Building or any
portions thereof are suitable for the use of a Rooftop Equipment, and Tenant shall satisfy itself
thereof. Tenant shall protect, defend, indemnify and hold harmless Landlord and Landlord’s Agents
from and against claims, damages, liabilities, costs and expenses of every kind and nature,
including attorneys’ fees, incurred by or asserted against Landlord arising out of Tenant’s
installation, maintenance, replacement, use or removal of the Rooftop Equipment. Tenant’s
obligations under this paragraph shall survive any termination of this Lease.

     10. Acceptance of Premises.

          (a) By accepting delivery of the Premises, Tenant accepts the Premises as suitable for
Tenant’s intended use and as being in good and sanitary operating order, condition and repair, AS
IS, and without representation or warranty by Landlord as to the condition, use or occupancy which
may be made thereof. Any exceptions to the foregoing must be by written agreement executed by
Landlord and Tenant.

          (b) Notwithstanding the provisions of Paragraph 10(a) above or any other provision in this
Lease, Landlord shall cause the Building’s Systems and all components of the Building Systems to be
in good working order on the Commencement Date. Any claims by Tenant under the preceding sentence
shall be made in writing not later than the one hundred twentieth (120th) day after the
Commencement Date and shall be corrected by Landlord at its sole cost and expense (and not as an
Expense). In the event Tenant fails to deliver a written claim to Landlord on or before such one
hundred twentieth (120th) day, then Landlord shall be conclusively deemed to have satisfied its
obligations under this Paragraph 10(b). Landlord’s obligations under this Paragraph 10(b) shall
specifically exclude any obligation to repair any damage caused to the Building Systems by Tenant
or Tenant’s Agents. “Building Systems” shall include all mechanical, electrical and plumbing
systems serving the Premises.

     11. Surrender. On the last day of the Term, or on the sooner termination of this
Lease, Tenant shall surrender the Premises to Landlord (a) in the same condition and repair as the
Premises are delivered to Tenant (damage by acts of God, fire, and normal wear and tear excepted),
and (b) otherwise in accordance with Paragraph 32(h). Normal wear and tear shall not include any
damage or deterioration to the floors of the Premises arising from the use of forklifts in, on or
about the Premises (including any marks or stains on any portion of the floors), and any damage or
deterioration that would have been prevented by proper maintenance by Tenant, or Tenant otherwise
performing all of its obligations under this Lease. On or before the expiration or sooner
termination of this Lease, (i) Tenant shall remove all of Tenant’s Property (as hereinafter
defined) and Tenant’s signage from the Premises, the Building and the Project and repair any damage
caused by such removal, and (ii) Landlord may by notice to Tenant given not later than ninety (90)
days prior to the Expiration Date (except in the event of a termination of this Lease prior to the
scheduled Expiration Date, in which event no advance notice shall be required), require Tenant at
Tenant’s expense to remove any or all Alterations that Landlord has not consented to or that
Landlord has not informed Tenant may remain in the Premises pursuant to Paragraph 12(h) below
and/or the initial Tenant Improvements constructed and installed

16

 

pursuant to Exhibit B hereto, and to repair any damage caused by such removal.
Any of Tenant’s Property not so removed by Tenant as required herein shall be deemed abandoned if
Tenant does not remove it within five (5) days of written notice from Landlord and such abandoned
Tenant’s Property may be stored, removed, and disposed of by Landlord at Tenant’s expense, and
Tenant waives all claims against Landlord for any damages resulting from Landlord’s retention and
disposition of such property, provided that Tenant shall remain liable to Landlord for all costs
incurred in storing and disposing of such abandoned property of Tenant. All Tenant Improvements
and Alterations except those which Landlord requires Tenant to remove in accordance with the terms
of this Lease shall remain in the Premises as the property of Landlord. If the Premises are not
surrendered at the end of the Term or sooner termination of this Lease, and in accordance with the
provisions of this Paragraph 11 and Paragraph 32(h) below, Tenant shall continue to be responsible
for the payment of Rent (as the same may be increased pursuant to Paragraph 35 below) until the
Premises are so surrendered in accordance with said Paragraphs. Tenant shall indemnify, defend and
hold Landlord harmless from and against any and all loss or liability resulting from delay by
Tenant in so surrendering the Premises including, without limitation, any loss or liability
resulting from any claim against Landlord made by any succeeding tenant or prospective tenant
founded on or resulting from such delay and losses to Landlord due to lost opportunities to lease
any portion of the Premises together with, in each case, actual attorneys’ fees and costs.

     12. Alterations and Additions.

          (a) Tenant shall not make, or permit to be made, any alteration, addition or improvement
(hereinafter referred to individually as an “Alteration” and collectively as the
“Alterations”) to the Premises or any part thereof without the prior written consent of
Landlord, which consent shall not be unreasonably withheld, provided that it shall be deemed
reasonable for Landlord to withhold its consent to any Alteration which conflicts with the
Construction Rules and Regulations or which affects structural portions of the Premises, the
Building or the Project or the Systems serving the Premises, the Building and/or the Project or any
portion thereof. Construction Rules and Regulations means Landlord’s standard rules and
regulations relating to construction and alterations, as updated and revised from time to time.
Notwithstanding the foregoing, Tenant shall have the right to make Alterations to the Premises with
prior written notice to, but without the consent of, Landlord, provided that such Alterations (i)
do not affect the structural portions of the Building or the Project or the Systems serving the
Building and/or the Project, (ii) are “generic” office and R&D improvements (as determined by
Landlord in good faith), (iii) consist of improvements and finishes that are similar to, and of
equal or higher quality than, the Tenant Improvements, (iv) do not cost in excess of Fifty Thousand
Dollars ($50,000.00) to construct and install on an individual basis or in the aggregate during a
twelve (12) month period, and (v) are performed in full compliance with the terms of Paragraphs
12(b) through 12(g) below.

          (b) Any Alteration to the Premises shall be at Tenant’s sole cost and expense, in compliance
with all applicable Laws and such reasonable requirements requested by Landlord, including the
requirements of any insurer providing coverage for the Premises or the Project or any part thereof,
and in accordance with plans and specifications approved in writing by Landlord, and shall be
constructed and installed by a contractor reasonably approved in writing by Landlord. As a further
condition to giving consent to any Alterations which will exceed Two

17

 

Hundred Fifty Thousand Dollars ($250,000), Landlord may require Tenant to provide Landlord, at
Tenant’s sole cost and expense, a payment and performance bond in form acceptable to Landlord, in a
principal amount not less than one and one-half times the estimated costs of such Alterations, to
ensure Landlord against any liability for mechanics’ and materialmen’s liens and to ensure
completion of work. Before Alterations may begin, valid building permits or other required permits
or licenses required must be furnished to Landlord, and, once the Alterations begin, Tenant shall
diligently and continuously pursue their completion and issuance of any final permit and
certificate of occupancy, as applicable. Landlord may monitor construction of the Alterations and
Tenant shall reimburse Landlord for its reasonable costs (including, without limitation, the costs
of any construction manager retained by Landlord) in reviewing plans and documents and in
monitoring construction. Tenant shall maintain during the course of construction, at its sole cost
and expense, builders’ risk insurance for the amount of the completed value of the Alterations on
an all-risk non-reporting form covering all improvements under construction, including building
materials, and other insurance in amounts and against such risks as Landlord shall reasonably
require in connection with the Alterations. In addition to and without limitation on the
generality of the foregoing, Tenant shall ensure that its contractor(s) procure and maintain in
full force and effect during the course of construction a “broad form” commercial general liability
and property damage policy of insurance naming Landlord, Landlord’s Manager and investment advisor
and agent, Tenant, and Landlord’s Property Manager and lenders as additional insureds. The minimum
limit of coverage of the aforesaid policy shall be in the amount of not less than Three Million
Dollars ($3,000,000.00) for injury or death of one person in any one accident or occurrence and in
the amount of not less than Three Million Dollars ($3,000,000.00) for injury or death of more than
one person in any one accident or occurrence, and shall contain a severability of interest clause
or a cross liability endorsement. Such insurance shall further insure Landlord and Tenant against
liability for property damage of at least One Million Dollars ($1,000,000.00).

          (c) All Alterations, including heating, lighting, electrical, air conditioning, fixed
partitioning, drapery, wall covering and paneling, built-in cabinet work and carpeting
installations made by Tenant, together with all property that has become an integral part of the
Premises or the Building, shall at once be and become the property of Landlord, and shall not be
deemed trade fixtures or Tenant’s Property.

          (d) No private telephone systems and/or other related computer or telecommunications equipment
or lines may be installed without Landlord’s prior written consent, which shall not be unreasonably
withheld. If Landlord gives such consent, all equipment must be installed within the Premises and,
at the request of Landlord made at any time prior to the expiration of the Term, removed upon the
expiration or sooner termination of this Lease and the Premises restored to the same condition as
before such installation.

          (e) Notwithstanding anything herein to the contrary, before installing any equipment or lights
which generate an undue amount of heat in the Premises, or if Tenant plans to use any high-power
usage equipment in the Premises, Tenant shall obtain the written permission of Landlord. Landlord
may refuse to grant such permission unless Tenant agrees to pay the costs to Landlord for
installation of supplementary air conditioning capacity or electrical systems necessitated by such
equipment.

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          (f) Tenant shall not make any Alterations, notwithstanding consent from Landlord to do so,
until Tenant notifies Landlord in writing of the date Tenant desires to commence construction or
installation of such Alterations and Landlord has approved such date in writing, in order that
Landlord may post appropriate notices to avoid any liability to contractors or material suppliers
for payment for Tenant’s improvements. Tenant will at all times permit such notices to be posted
and to remain posted until the completion of work.

          (g) Tenant shall not, at any time prior to or during the Term, directly or indirectly employ,
or permit the employment of, any contractor, mechanic or laborer in the Premises, whether in
connection with any Alteration or otherwise, if it is reasonably foreseeable that such employment
will materially interfere or cause any material conflict with other contractors, mechanics, or
laborers engaged in the construction, maintenance or operation of the Project by Landlord, Tenant
or others. In the event of any such interference or conflict, Tenant, upon demand of Landlord,
shall cause all contractors, mechanics or laborers causing such interference or conflict to leave
the Project immediately.

          (h) At the time of requesting Landlord’s consent to any Alterations, Tenant shall have the
right to request that Landlord inform Tenant whether such Alterations may remain in the Premises
following, or must be removed from the Premises prior to, the expiration or sooner termination of
this Lease.

     13. Maintenance and Repairs of Premises.

          (a) Maintenance by Tenant. Subject to the provisions of Paragraphs 13(b), 21 and 22, Tenant
shall, at its sole expense, (i) keep and maintain in good order and condition the Premises and
Tenant’s Property, and repair and replace every part thereof, including without limitation the
glass, windows, window frames, window casements, skylights, interior and exterior doors, door
frames and door closers, all communications systems serving the Premises, Tenant’s signage,
interior demising walls and partitions, equipment, interior painting and interior walls and floors,
and roll-up doors, ramps and dock equipment (including, without limitation, dock bumpers, dock
plates, dock seals, dock levelers and dock lights located in or on the Premises), (ii) keep and
maintain in good order and condition, repair and replace all of Tenant’s security systems in or
about or serving the Premises, and (iii) maintain and replace all lamps, bulbs, starters and
ballasts. Tenant shall not do nor shall Tenant allow Tenant’s Agents to do anything to cause any
damage, deterioration or unsightliness to the Premises, the Building or the Project.

          (b) Maintenance by Landlord.

               (i) Subject to the provisions of Paragraphs 21 and 22, and as an Operating Expense subject to
the terms of Paragraph 4, Landlord shall repair and maintain in good order and condition the
following items: the roof coverings (provided that Tenant installs no additional air conditioning
or other equipment on the roof that damages the roof coverings, in which event Tenant shall pay all
costs resulting from the presence of such additional equipment); the Parking Areas, and the Common
Areas (including pavement, landscaping, sprinkler systems, sidewalks, driveways, curbs, and
lighting systems).

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               (ii) Subject to the provisions of Paragraphs 21 and 22, Landlord, at its own cost and expense,
shall repair and maintain in good order and condition the following items: the structural portions
of the roof (specifically excluding the roof coverings), the foundation, the footings, the floor
slab, and the load bearing walls and exterior walls of the Building (excluding any glass and any
routine maintenance, including, without limitation, any painting, sealing, patching and
waterproofing of such walls).

               (iii) Subject to the provisions of Paragraphs 21 and 22, Landlord, at Tenant’s sole cost and
expense, shall repair and maintain in good order and condition the Building Systems, including
without limitation plumbing, HVAC, backup generator system, electrical systems, lifesafety and fire
alarm systems. Without limiting the generality of the foregoing, and in connection therewith,
Landlord shall obtain and keep in force preventive maintenance contracts providing for regular (at
least quarterly) inspection and maintenance of the HVAC systems and the emergency backup generator
by a qualified service contractor(s) selected by Landlord. All costs and expenses incurred by
Landlord in connection with the repairs and maintenance set forth in this Paragraph 13(b)(iii)
shall be payable by Tenant as Additional Rent (but not as Expenses). Other than scheduled service
appointments, Landlord’s obligations under this Paragraph 13(b)(iii) are subject to the condition
precedent that Landlord shall have received written notice of the need for such repairs and
maintenance and a reasonable time to perform such repair and maintenance. Notwithstanding anything
in this Paragraph 13(b)(iii) to the contrary, in the event any equipment replacements that are
capitalized under generally accepted real estate accounting principles are required in order to
repair and maintain the Building Systems in good order and condition, then Tenant shall only be
required to pay an amortized portion of the cost of such capital replacement falling due within the
Term (including any Renewal Term) based upon the amortization of such capital replacement over its
useful life, as reasonably determined by Landlord.

               (iv) Notwithstanding anything in this Paragraph 13 to the contrary, Landlord shall have the
right to either repair or to require Tenant to repair any damage to any portion of the Premises,
the Building and/or the Project caused by or created due to any act, omission, negligence or
willful misconduct of Tenant or Tenant’s Agents and to restore the Premises, the Building and/or
the Project, as applicable, to the condition existing prior to the occurrence of such damage;
provided, however, that in the event Landlord elects to perform such repair and restoration work,
Tenant shall reimburse Landlord for all costs and expenses incurred by Landlord in connection
therewith to the extent not covered by insurance proceeds, and such reimbursement shall be paid, in
full, within ten (10) days after Landlord’s demand therefor. Landlord’s obligations hereunder are
subject to the condition precedent that Landlord shall have received written notice of the need for
such repairs and maintenance and a reasonable time to perform such repair and maintenance. Tenant
shall promptly report in writing to Landlord any defective condition known to it which Landlord is
required to repair, and failure to so report such defects shall make Tenant responsible to Landlord
for any liability incurred by Landlord by reason of such condition.

          (c) Tenant’s Waiver of Rights. Tenant hereby expressly waives all rights to make repairs at
the expense of Landlord or to terminate this Lease, as provided for in California Civil Code
Sections 1941 and 1942, and 1932(l), respectively, and any similar or successor statute or law in
effect or any amendment thereof during the Term.

20

 

     14. Landlord’s Insurance. Landlord shall purchase and keep in force fire, extended
coverage and “all risk” insurance covering the Building and the Project. Tenant shall, at its sole
cost and expense, comply with any and all reasonable requirements of any insurer providing fire and
commercial general liability insurance covering the Building and the Project.

     15. Tenant’s Insurance.

          (a) Commercial General Liability Insurance. Tenant shall, at Tenant’s expense, secure and
keep in force a “broad form” commercial general liability insurance and property damage policy
covering the Premises, insuring Tenant, and naming Landlord, Landlord’s investment advisors and
agents from time to time, including, without limitation, UBS Realty Investors llc and
Landlord’s lenders (collectively, “Landlord’s Insureds”), as additional insureds
against any liability arising out of the ownership, use, occupancy or maintenance of the Premises.
The minimum limit of coverage of such policy shall be in the amount of not less than Three Million
Dollars ($3,000,000.00) for injury or death of one person in any one accident or occurrence and in
the amount of not less than Three Million Dollars ($3,000,000.00) for injury or death of more than
one person in any one accident or occurrence, shall include an extended liability endorsement
providing contractual liability coverage (including coverage for Tenant’s indemnification
obligations in this Lease), and shall contain a severability of interest clause or a cross
liability endorsement. Such insurance shall further insure Landlord and Tenant against liability
for property damage of at least Three Million Dollars ($3,000,000.00). Landlord may from time to
time require reasonable increases in any such limits if Landlord believes that additional coverage
is necessary or desirable. The limit of any insurance shall not limit the liability of Tenant
hereunder. No policy maintained by Tenant under this Paragraph 15(a) shall contain a deductible
greater than Two Thousand Five Hundred Dollars ($2,500.00). No policy shall be cancelable or
subject to reduction of coverage without thirty (30) days’ prior written notice to Landlord, and
loss payable clauses shall be subject to Landlord’s approval. Such policies of insurance shall be
issued as primary policies and not contributing with or in excess of coverage that Landlord may
carry, by an insurance company authorized to do business in the State of California for the
issuance of such type of insurance coverage and rated A:XIII or better in Best’s Key Rating Guide.

          (b) Personal Property Insurance. Tenant shall maintain in full force and effect on all of its
personal property, furniture, furnishings, trade or business fixtures and equipment (collectively,
“Tenant’s Property”) on the Premises, a policy or policies of fire and extended
coverage insurance with standard coverage endorsement to the extent of the full replacement cost
thereof. No such policy shall contain a deductible greater than Two Thousand Five Hundred Dollars
($2,500.00). During the term of this Lease the proceeds from any such policy or policies of
insurance shall be used for the repair or replacement of the fixtures and equipment so insured.
Landlord shall have no interest in the insurance upon Tenant’s equipment and fixtures and will sign
all documents reasonably necessary in connection with the settlement of any claim or loss by
Tenant. Landlord will not carry insurance on Tenant’s possessions.

          (c) Worker’s Compensation Insurance; Employer’s Liability Insurance. Tenant shall, at
Tenant’s expense, maintain in full force and effect worker’s compensation insurance with not less
than the minimum limits required by law, and employer’s liability insurance with a minimum limit of
coverage of One Million Dollars ($1,000,000.00).

21

 

          (d) Evidence of Coverage. Tenant shall deliver to Landlord certificates of insurance and true
and complete copies of any and all endorsements required herein for all insurance required to be
maintained by Tenant hereunder at the time of execution of this Lease by Tenant. Tenant shall, at
least thirty (30) days prior to expiration of each policy, furnish Landlord with certificates of
renewal or “binders” thereof. Each certificate shall expressly provide that such policies shall
not be cancelable or otherwise subject to modification except after thirty (30) days’ prior written
notice to Landlord and the other parties named as additional insureds as required in this Lease
(except for cancellation for nonpayment of premium, in which event cancellation shall not take
effect until at least ten (10) days’ notice has been given to Landlord).

     16. Indemnification. Tenant shall defend, protect, indemnify and hold harmless
Landlord and Landlord’s Agents against and from any and all claims, suits, liabilities, judgments,
costs, demands, causes of action and expenses (including, without limitation, reasonable attorneys’
fees, costs and disbursements) arising from (1) the use of the Premises, the Building or the
Project by Tenant or Tenant’s Agents, or from any activity done, permitted or suffered by Tenant or
Tenant’s Agents in or about the Premises, the Building or the Project, including any Hazardous
Materials, (2) any act, neglect, fault, willful misconduct or omission of Tenant or Tenant’s
Agents, or from any Default in the terms of this Lease by Tenant or Tenant’s Agents, and (3) any
action or proceeding brought on account of any matter in items (1) or (2), except to the extent
caused by the gross negligence or willful misconduct of Landlord or Landlord’s Agents or by the
failure of Landlord to observe any of the terms and conditions of this Lease, if such failure has
persisted for an unreasonable period of time after written notice of such failure. If any action
or proceeding is brought against Landlord by reason of any such claim, upon notice from Landlord,
Tenant shall defend the same at Tenant’s expense by counsel reasonably satisfactory to Landlord.
As a material part of the consideration to Landlord, Tenant hereby releases Landlord and Landlord’s
Agents from responsibility for, waives its entire claim of recovery for and assumes all risk of (i)
damage to property or injury to persons in or about the Premises, the Building or the Project from
any cause whatsoever (except to the extent caused by the gross negligence or willful misconduct of
Landlord or Landlord’s Agents or by the failure of Landlord to observe any of the terms and
conditions of this Lease, if such failure has persisted for an unreasonable period of time after
written notice of such failure), or (ii) loss resulting from business interruption or loss of
income at the Premises. The obligations of Tenant under this Paragraph 16 shall survive any
termination of this Lease. The foregoing indemnity shall not relieve any insurance carrier of its
obligations under any policies required to be carried by either party pursuant to this Lease, to
the extent that such policies cover the peril or occurrence that results in the claim that is
subject to the foregoing indemnity.

     17. Subrogation. Landlord and Tenant hereby mutually waive any claim against the
other and its Agent(s) for any loss or damage to any of their property located on or about the
Premises, the Building or the Project that is caused by or results from perils covered by property
insurance carried by the respective parties, to the extent of the proceeds of such insurance
actually received with respect to such loss or damage, whether or not due to the negligence of the
other party or its Agents. Because the foregoing waivers will preclude the assignment of any claim
by way of subrogation to an insurance company or any other person, each party shall immediately
notify its insurer, in writing, of the terms of these mutual waivers and have their insurance
policies endorsed to prevent the invalidation of the insurance coverage because of

22

 

these waivers. Nothing in this Paragraph 17 shall relieve a party of liability to the other
for failure to carry insurance required by this Lease.

     18. Signs.

          (a) Exterior Signage. Tenant shall be entitled to exclusive Building exterior signage and
Building monument signage (collectively, the “Building Signage”). The Building
Signage, including, without limitation, the exact location of the Building Signage and the manner
in which it is attached, shall be subject to all applicable Laws and Landlord’s prior written
approval, which approval shall not be unreasonably withheld or delayed, provided that the location
does not detract from the first-class quality of the Building. Such right to the Building Signage
is personal to Tenant or any assignee of Tenant’s rights under this Lease and is subject to the
following terms and conditions: (a) Tenant shall submit plans and drawings for the Building
Signage to Landlord and to the City of Sunnyvale and to any other public authorities having
jurisdiction and shall obtain written approval from Landlord and each such jurisdiction prior to
installation, and shall fully comply with all applicable Laws; (b) Tenant shall, at Tenant’s sole
cost and expense, design, construct and install the Building Signage; (c) the size, color and
design of the Building Signage shall be subject to Landlord’s prior written approval, which
Landlord shall have the right to withhold in its reasonable discretion; and (d) Tenant shall
maintain the Building Signage in good condition and repair, and all costs of maintenance and repair
shall be borne by Tenant. Maintenance shall include, without limitation, cleaning and, if the
Building Signage is illuminated, relamping at reasonable intervals. Tenant shall be responsible
for any electrical energy used in connection with the Building Signage. Upon the expiration or
earlier termination of this Lease or at such other time that Tenant’s signage rights are terminated
pursuant to the terms hereof, if Tenant fails to remove the Building Signage and repair the
Building in accordance with the terms of this Lease, Landlord shall cause the Building Signage to
be removed from the Building and the Building to be repaired and restored to the condition which
existed prior to the installation of the Building Signage (including, if necessary, the replacement
of any precast concrete panels), all at the sole cost and expense of Tenant and otherwise in
accordance with this Lease, without further notice from Landlord notwithstanding anything to the
contrary contained in this Lease. Tenant shall pay all costs and expenses for such removal and
restoration within five (5) business days following delivery of an invoice therefor. The rights
provided in this Paragraph 18(a) shall be non-transferable unless transferred in connection with an
assignment of all of Tenant’s rights under this Lease in accordance with Paragraph 23 below.

          (b) General Restrictions. Subject to the terms of Paragraph 18(a), Tenant shall not place or
permit to be placed in, upon, or about the Premises, the Building or the Project any exterior
lights, decorations, balloons, flags, pennants, banners, advertisements or notices, or erect or
install any signs, windows or door lettering, placards, decorations, or advertising media of any
type which can be viewed from the exterior the Premises without obtaining Landlord’s prior written
consent or without complying with Landlord’s signage criteria (the “Signage Criteria”),
as the same may be reasonably established and modified by Landlord from time to time, and with all
applicable Laws, and will not conduct, or permit to be conducted, any sale by auction on the
Premises or otherwise on the Project. Notwithstanding the foregoing, Tenant shall have the right
to install building standard identification signage (the “Identification Signs”) in
locations designated by Landlord; provided, however, that Landlord shall have the right to approve
the

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size, design and graphics of such Identification Signs; and provided, further, that such
Identification Signs shall comply with the Signage Criteria and all applicable Laws.
Notwithstanding anything to the contrary contained herein, Landlord reserves the right to withhold
consent to any sign that, in the good faith judgment of Landlord, is offensive, political or
otherwise not harmonious with first-class Buildings. Tenant shall be responsible for obtaining all
governmental approvals (including, without limitation, the approval of the City of Sunnyvale)
required for the installation of the Identification Signs, and Tenant shall pay all costs of
installing (including all costs of obtaining any permits or approvals required for such
installation) and subsequently removing the Identification Signs and of repairing any damage to the
Premises and/or the monument pillar, as applicable, caused by such removal. Without limiting the
foregoing, Tenant shall remove any sign, advertisement or notice placed on the Premises, the
Building or the Project by Tenant upon the expiration of the Term or sooner termination of this
Lease, and Tenant shall repair any damage or injury to the Premises, the Building or the Project
caused thereby, all at Tenant’s expense. If any signs are not removed, or necessary repairs not
made, Landlord shall have the right to remove the signs and repair any damage or injury to the
Premises, the Building or the Project at Tenant’s sole cost and expense. In addition to any other
rights or remedies available to Landlord, in the event that Tenant erects or installs any sign in
violation of this Paragraph 18, and Tenant fails to remove same within three (3) business days
after notice from Landlord or erects or installs a similar sign in the future, Landlord shall have
the right to charge Tenant a signage charge equal to $100.00 per day for each day thereafter that
such sign is not removed or a similar sign is installed or erected in the future. Landlord’s
election to charge such fee shall not be deemed to be a consent by Landlord to such sign and Tenant
shall remain obligated to remove such sign in accordance with Landlord’s notice.

     19. Free From Liens. Tenant shall keep the Premises, the Building and the Project
free from any liens arising out of any work performed, material furnished or obligations incurred
by or for Tenant. If Tenant shall not, within twenty (20) days following the imposition of any
such lien, cause the lien to be released of record by payment or posting of a proper bond, Landlord
shall have in addition to all other remedies provided herein and by law the right but not the
obligation to cause same to be released by such means as it shall deem proper, including payment of
the claim giving rise to such lien. All such sums paid by Landlord and all expenses incurred by it
in connection therewith (including, without limitation, attorneys’ fees) shall be payable to
Landlord by Tenant upon demand. Landlord shall have the right at all times to post and keep posted
on the Premises any notices permitted or required by law or that Landlord shall deem proper for the
protection of Landlord, the Premises, the Building and the Project, from mechanics’ and
materialmen’s liens. Tenant shall give to Landlord at least five (5) business days’ prior written
notice of commencement of any repair or construction on the Premises.

     20. Entry By Landlord. Tenant shall permit Landlord and Landlord’s Agents to enter
the Premises at all reasonable times, upon reasonable notice of at least twenty-four (24) hours
(except in the case of an emergency, for which no notice shall be required), and subject to
Tenant’s reasonable security arrangements, for the purpose of inspecting the same or showing the
Premises to prospective purchasers, lenders or tenants (provided that Landlord can only show the
Premises to perspective tenants during the last nine (9) months of the Term) or to provide
services, alter, improve, maintain and repair the Premises or the Building as required or permitted
by Landlord under the terms hereof, or for any other business purpose, without any rebate of Rent
and without any liability to Tenant for any loss of occupation or quiet enjoyment

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of the Premises thereby occasioned (except for actual damages resulting from the sole active
gross negligence or willful misconduct of Landlord); and Tenant shall permit Landlord to post
notices of non-responsibility and “for sale” or “for lease” signs, except that Landlord may only
post “for lease” signs at the Premises during the last nine (9) months of the Term. No such entry
shall be construed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an
eviction of Tenant from the Premises. Landlord may temporarily close entrances, doors, corridors,
elevators or other facilities without liability to Tenant by reason of such closure in the case of
an emergency and when Landlord otherwise deems such closure necessary. Landlord shall use
commercially reasonable efforts while entering the Premises pursuant to this Paragraph 20 to
minimize any interference with Tenant’s use of the Premises.

     21. Destruction and Damage.

          (a) If the Premises are damaged by fire or other perils covered by extended coverage
insurance, Landlord shall, at Landlord’s option:

               (i) In the event of total destruction (which means destruction or damage in excess of
twenty-five percent (25%) of the full insurable value thereof) of the Premises, elect either to
commence promptly to repair and restore the Premises and prosecute the same diligently to
completion, in which event this Lease shall remain in full force and effect; or not to repair or
restore the Premises, in which event this Lease shall terminate. Landlord shall give Tenant
written notice of its intention within sixty (60) days after the date Landlord obtains actual
knowledge of such destruction (the “Casualty Discovery Date”). If Landlord elects not
to restore the Premises, this Lease shall be deemed to have terminated as of the Casualty Discovery
Date.

               (ii) In the event of a partial destruction (which means destruction or damage not exceeding
twenty-five percent (25%) of the full insurable value thereof) of the Premises for which Landlord
will receive insurance proceeds sufficient to cover the cost to repair and restore such partial
destruction and, if the damage thereto is such that the Premises may be substantially repaired or
restored to its condition existing immediately prior to such damage or destruction within two
hundred seventy (270) days from the Casualty Discovery Date, Landlord shall commence and proceed
diligently with the work of repair and restoration, in which event the Lease shall continue in full
force and effect. If such repair and restoration requires longer than two hundred seventy (270)
days or if the insurance proceeds therefor (plus any amounts Tenant may elect or is obligated to
contribute) are not sufficient to cover the cost of such repair and restoration, Landlord may elect
either to so repair and restore, in which event the Lease shall continue in full force and effect,
or not to repair or restore, in which event the Lease shall terminate. In either case, Landlord
shall give written notice to Tenant of its intention within sixty (60) days after the Casualty
Discovery Date. If Landlord elects not to restore the Premises, this Lease shall be deemed to have
terminated as of the Casualty Discovery Date.

               (iii) Notwithstanding anything to the contrary contained in this Paragraph, in the event of
damage to the Premises which costs in excess of One Hundred Thousand Dollars ($100,000) to repair
occurring during the last twelve (12) months of the Term, either Landlord or, if such damage to the
Premises materially impairs Tenant’s ability to continue its business operations therein, then
Tenant may elect to terminate this Lease by written notice of such election given to the other
party within thirty (30) days after the Casualty Discovery Date.

25

 

          (b) If the Premises are damaged by any peril not covered by extended coverage insurance, and
the cost to repair such damage exceeds any amount Tenant may agree to contribute, Landlord may
elect either to commence promptly to repair and restore the Premises and prosecute the same
diligently to completion, in which event this Lease shall remain in full force and effect; or not
to repair or restore the Premises, in which event this Lease shall terminate. Landlord shall give
Tenant written notice of its intention within sixty (60) days after the Casualty Discovery Date.
If Landlord elects not to restore the Premises, this Lease shall be deemed to have terminated as of
the date on which Tenant surrenders possession of the Premises to Landlord, except that if the
damage to the Premises materially impairs Tenant’s ability to continue its business operations in
the Premises, then this Lease shall be deemed to have terminated as of the date such damage
occurred.

          (c) In the event of repair and restoration as herein provided, the monthly installments of
Base Rent shall be abated proportionately in the ratio which Tenant’s use of the Premises is
impaired during the period from the Casualty Discovery Date until substantial completion of such
repair or restoration; provided, however, that if such damage or destruction resulted from the
negligent acts of Tenant or Tenant’s Agents, then such abatement shall be limited to the extent of
rental abatement insurance proceeds received by Landlord. Except as expressly provided in the
immediately preceding sentence with respect to abatement of Base Rent, Tenant shall have no claim
against Landlord for, and hereby releases Landlord and Landlord’s Agents from responsibility for
and waives its entire claim of recovery for any cost, loss or expense suffered or incurred by
Tenant as a result of any damage to or destruction of the Premises, the Building or the Project or
the repair or restoration thereof, including, without limitation, any cost, loss or expense
resulting from any loss of use of the whole or any part of the Premises, the Building or the
Project and/or any inconvenience or annoyance occasioned by such damage, repair or restoration.

          (d) If the Premises is damaged or destroyed to the extent that the Premises cannot be
substantially repaired or restored by Landlord within two hundred seventy (270) days after the
Casualty Discovery Date, Tenant may terminate this Lease immediately upon notice thereof to
Landlord, which shall be given, if at all, not later than fifteen (15) days after Landlord notifies
Tenant of Landlord’s estimate of the period of time required to repair such damage or destruction.

          (e) If Landlord is obligated to or elects to repair or restore as herein provided, Landlord
shall repair or restore only the initial tenant improvements, if any, constructed by Landlord in
the Premises pursuant to the terms of this Lease, substantially to their condition existing
immediately prior to the occurrence of the damage or destruction; and Tenant shall promptly repair
and restore, at Tenant’s expense, Tenant’s Alterations which were not constructed by Landlord.

          (f) Tenant hereby waives the provisions of California Civil Code Section 1932(2) and Section
1933(4) which permit termination of a lease upon destruction of the leased premises, and the
provisions of any similar law now or hereinafter in effect, and the provisions of this Paragraph 21
shall govern exclusively in case of such destruction.

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     22. Condemnation.

          (a) If twenty-five percent (25%) or more of either the Premises or the Building or the parking
areas for the Building is permanently taken for any public or quasi-public purpose by any lawful
governmental power or authority, by exercise of the right of appropriation, inverse condemnation,
condemnation or eminent domain, or sold to prevent such taking (each such event being referred to
as a “Condemnation”), Landlord may, at its option, terminate this Lease as of the date
title vests in the condemning party. If a portion of the Premises is taken and if the Premises
remaining after such Condemnation and any repairs by Landlord would be objectively and reasonably
untenantable for the conduct of Tenant’s business operations, then Tenant shall have the right to
terminate this Lease as of the date title vests in the condemning party. If either party elects to
terminate this Lease as provided herein, such election shall be made by written notice to the other
party given within thirty (30) days after the nature and extent of such Condemnation have been
finally determined. If neither Landlord nor Tenant elects to terminate this Lease to the extent
permitted above, Landlord shall promptly restore the Premises, to the extent of any Condemnation
award received by Landlord, to substantially the same condition as existed prior to such
Condemnation, allowing for the reasonable effects of such Condemnation, and a proportionate
abatement shall be made to the Base Rent corresponding to the time during which, and to the portion
of the floor area of the Premises (adjusted for any increase thereto resulting from any
reconstruction) of which, Tenant is deprived on account of such Condemnation and restoration, as
reasonably determined by Landlord. Except as expressly provided in the immediately preceding
sentence with respect to abatement of Base Rent, Tenant shall have no claim against Landlord for,
and hereby releases Landlord and Landlord’s Agents from responsibility for and waives its entire
claim of recovery for any cost, loss or expense suffered or incurred by Tenant as a result of any
Condemnation, whether permanent or temporary, or the repair or restoration of the Premises, the
Building or the Project or the Parking Areas following such Condemnation, including any cost, loss
or expense resulting from any loss of use of the whole or any part of the Premises, the Building,
the Project or the Parking Areas and/or any inconvenience or annoyance occasioned by such
Condemnation, repair or restoration. The provisions of California Code of Civil Procedure Section
1265.130, which allows either party to petition the Superior Court to terminate the Lease in the
event of a partial taking of the Premises, the Building or the Project or the parking areas for the
Building or the Project, and any other applicable law now or hereafter enacted, are hereby waived
by Tenant.

          (b) Landlord shall be entitled to any and all compensation, damages, income, rent, awards, or
any interest therein whatsoever which may be paid or made in connection with any Condemnation, and
Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease or
otherwise, provided that Tenant shall be entitled to receive any award separately allocated by the
condemning authority to Tenant for Tenant’s relocation expenses or the value of Tenant’s Property
(specifically excluding fixtures, Alterations and other components of the Premises which under this
Lease or by law are or at the expiration of the Term will become the property of Landlord),
provided that such award does not reduce any award otherwise allocable or payable to Landlord.

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     23. Assignment and Subletting.

          (a) Tenant shall not voluntarily or by operation of law, (1) mortgage, pledge, hypothecate or
encumber this Lease or any interest herein, (2) assign or transfer this Lease or any interest
herein, sublease the Premises or any part thereof, or any right or privilege appurtenant thereto,
or allow any other person (the employees and invitees of Tenant excepted) to occupy or use the
Premises, or any portion thereof, without first obtaining the written consent of Landlord, which
consent shall not be withheld unreasonably as set forth below in this Paragraph 23, provided that
(i) Tenant is not then in Default under this Lease nor is any event then occurring which with the
giving of notice or the passage of time, or both, would constitute a Default hereunder, (ii) Tenant
has not previously assigned or transferred this Lease or any interest herein or subleased the
Premises or any part thereof, and (iii) Tenant provides a fully completed Hazardous Materials
Disclosure Certificate for such assignee or subtenant in the form of Exhibit G attached
hereto.

     Tenant shall not voluntarily or by operation of law assign or transfer any right or interest
under this Lease, including, but not limited to, the right to initiate any collections, lawsuits,
audits or other findings of fact.

          (b) When Tenant requests Landlord’s consent to such assignment or subletting, it shall notify
Landlord in writing of the name and address of the proposed assignee or subtenant, the nature and
character of the business of the proposed assignee or subtenant, and the proposed assignee’s or
subtenant’s proposed use for the Premises, and shall provide current and prior annual financial
statements for the preceding three (3) years (or less than three (3) years if assignee or subtenant
has been in existence for less than three (3) years) for the proposed assignee or subtenant, which
financial statements shall be audited, or if audited financial statements are unavailable, such
statements shall be certified by the chief financial officer of the proposed assignee or subtenant,
and shall in any event be prepared in accordance with generally accepted accounting principles.
Tenant shall also provide Landlord with a copy of the proposed sublease or assignment agreement,
or, in the case of an assignment by operation of law, a copy of the proposed agreement that would
effect the assignment, in all cases including all material terms and conditions thereof, and all
other information reasonably requested by Landlord concerning the proposed sublease or assignment
and the parties involved therein. Landlord shall have the option, to be exercised within fifteen
(15) days of receipt of the foregoing, to (1) terminate this Lease as of the commencement date of
the proposed sublease of the entire Premises (as opposed to a portion of the Premises) for
substantially the remainder of the Term or assignment of all of Tenant’s rights under this Lease,
(2) sublease or take an assignment, as the case may be, from Tenant of the portion of Tenant’s
interest in this Lease and/or the Premises that Tenant proposes to assign or sublease, on the same
terms and conditions as stated in the proposed agreement, (3) consent to the proposed assignment or
sublease, or (4) refuse its consent to the proposed assignment or sublease, provided that (A) such
consent shall not be unreasonably withheld so long as Tenant is not then in Default under this
Lease nor is any event then occurring which, with the giving of notice or the passage of time, or
both, would constitute a Default hereunder, and (B) in the case of a sublease, as a condition to
providing such consent, Landlord may require attornment from the proposed subtenant on terms and
conditions set forth in such subtenant’s sublease. In the event Landlord elects to terminate this
Lease or sublease or take an assignment from Tenant of the interest, or portion thereof, in the
Lease and/or the Premises that Tenant

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proposes to assign or sublease as provided in the foregoing clauses (1) and (2), respectively,
then Landlord shall have the additional right to negotiate directly with Tenant’s proposed assignee
or subtenant and to enter into a direct lease or occupancy agreement with such party on such terms
as shall be acceptable to Landlord in its sole and absolute discretion, and Tenant hereby waives
any claims against Landlord related thereto, including, without limitation, any claims for any
compensation or profit related to such lease or occupancy agreement. If Landlord elects to
terminate this Lease as to a portion of the Premises as provided in this Paragraph 23(b), Tenant
shall execute an amendment to this Lease to that effect within ten (10) days after Landlord’s
written request, and if Landlord elects to sublease a portion of the Premises as provided in this
Paragraph 23(b), Tenant shall be responsible for all demising and tenant improvement costs to
effectuate the sublease.

          (c) Without otherwise limiting the criteria upon which Landlord may withhold its consent,
Landlord shall be entitled to consider all commercially reasonable criteria including, but not
limited to, the following: (1) the creditworthiness and financial stability of the proposed
assignee or subtenant, (2) the proposed sublessee or assignee conducts “freight forwarding,”
“logistics” or any other use that results in truck usage greater than Tenant’s approved use, and
(3) whether the proposed sublessee or assignee uses Hazardous Materials that pose a greater risk to
the Property in the reasonable opinion of Landlord.

     Landlord may withhold its consent to any assignment or sublease, if any one or more of the
following circumstances apply: (i) the actual use proposed to be conducted in the Premises or
portion thereof conflicts with the provisions of Paragraph 9(a) or (b) above or with any other
lease which restricts the use to which any space in the Building or the Project may be put, (ii)
the proposed assignment or sublease requires alterations, improvements or additions to the Premises
or portions thereof, (iii) the portion of the Premises proposed to be sublet is irregular in shape
and/or does not permit safe or otherwise appropriate means of ingress and egress, or does not
comply with governmental safety and other codes, (iv) the proposed sublessee or assignee is either
a governmental or quasi-governmental agency or instrumentality thereof; (v) the proposed sublessee
or assignee, or any person or entity which directly or indirectly, controls, is controlled by, or
is under common control with, the proposed sublessee or assignee occupies space in the Project at
the time of the request for Landlord’s consent; and (vi) if the proposed subtenant or assignee is a
Prohibited Person, as defined in Paragraph 47.

          (d) If Landlord approves an assignment or subletting as herein provided, Tenant shall pay to
Landlord, as Additional Rent, fifty percent (50%) of the excess, if any, of (1) the rent and any
additional rent, and any other consideration payable by the assignee or sublessee to Tenant, less
(i) leasing commissions that are reasonable and customary for the local market in which the
Premises are located, (ii) reasonable attorneys’ fees, and (iii) sublease related tenant
improvement costs, if any, to the extent any such costs are incurred by Tenant in connection with
such assignment or sublease; minus (2) Base Rent plus Additional Rent allocable to that part of the
Premises affected by such assignment or sublease pursuant to the provisions of this Lease. For
purposes of the aforesaid calculation, the foregoing costs shall be amortized on a straight-line
basis over the term of such assignment or sublease. Such excess shall be referred to as the
“Transfer Premium.” If part of the consideration for such transfer shall be payable
other than in cash, Landlord’s share of such non-cash consideration shall be in such form as is
reasonably satisfactory to Landlord. If Tenant shall enter into multiple transfers, the Transfer
Premium shall

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be calculated independently with respect to each transfer. The Transfer Premium due Landlord
hereunder shall be paid within five (5) days after Tenant receives any Transfer Premium from the
transferee. Landlord or its authorized representatives shall have the right at all reasonable
times to audit the books, records and papers of Tenant relating to any transfer, and shall have the
right to make copies thereof. If the Transfer Premium respecting any transfer shall be found to be
understated, Tenant shall within thirty (30) days after demand pay the deficiency, and if
understated by more than five percent (5%), Tenant shall pay Landlord’s costs of such audit. The
assignment or sublease agreement, as the case may be, after approval by Landlord, shall not be
amended or terminated without Landlord’s prior written consent, and shall contain a provision
directing the assignee or subtenant to pay the rent and other sums due thereunder directly to
Landlord upon receiving written notice from Landlord that Tenant is in Default under this Lease
with respect to the payment of Rent. In the event that, notwithstanding the giving of such notice,
Tenant collects any rent or other sums from the assignee or subtenant, then Tenant shall hold such
sums in trust for the benefit of Landlord and shall immediately forward the same to Landlord.
Landlord’s collection of such rent and other sums shall not constitute an acceptance by Landlord of
attornment by such assignee or subtenant.

          (e) Notwithstanding any assignment or subletting, Tenant and any guarantor or surety of
Tenant’s obligations under this Lease shall at all times remain fully and primarily responsible and
liable for the payment of the Rent and for compliance with all of Tenant’s other obligations under
this Lease (regardless of whether the approval of Landlord, or any such guarantor or surety, has
been obtained for any such assignment or subletting).

          (f) Tenant shall pay Landlord’s reasonable fees (including, without limitation, the fees and
expenses of Landlord’s counsel), incurred in connection with Landlord’s review and processing of
documents regarding any proposed assignment or sublease.

          (g) A consent to one assignment, subletting, occupation or use shall not be deemed to be a
consent to any other or subsequent assignment, subletting, occupation or use, and consent to any
assignment or subletting shall in no way relieve Tenant of any liability under this Lease. Any
assignment or subletting without Landlord’s consent shall be void, and shall, at the option of
Landlord, constitute a Default under this Lease.

          (h) Tenant acknowledges and agrees that the restrictions, conditions and limitations imposed
by this Paragraph 23 on Tenant’s ability to assign or transfer this Lease or any interest herein,
to sublet the Premises or any part thereof, to transfer or assign any right or privilege
appurtenant to the Premises, or to allow any other person to occupy or use the Premises or any
portion thereof, are, for the purposes of California Civil Code Section 1951.4, as amended from
time to time, and for all other purposes, reasonable at the time that the Lease was entered into,
and shall be deemed to be reasonable at the time that Tenant seeks to assign or transfer this Lease
or any interest herein, to sublet the Premises or any part thereof, to transfer or assign any right
or privilege appurtenant to the Premises, or to allow any other person to occupy or use the
Premises or any portion thereof.

          (i) Notwithstanding anything in this Lease to the contrary, if Landlord consents to an
assignment or subletting by Tenant in accordance with the terms of this Paragraph 23, Tenant’s
assignee or subtenant shall have no right to further assign this Lease or any interest therein or

30

 

thereunder or to further sublease all or any portion of the Premises. In furtherance of the
foregoing, Tenant acknowledges and agrees on behalf of itself and any assignee or subtenant
claiming under it (and any such assignee or subtenant by accepting such assignment or sublease
shall be deemed to acknowledge and agree) that no sub-subleases or further assignments of this
Lease shall be permitted at any time.

          (j) If this Lease is assigned, whether or not in violation of the provisions of this Lease,
Landlord may collect Rent from the assignee. If the Premises or any part thereof is sublet or used
or occupied by anyone other than Tenant, whether or not in violation of this Lease, Landlord may,
after a Default by Tenant, collect Rent from the subtenant or occupant. In either event, Landlord
may apply the net amount collected to Rent, but no such assignment, subletting, occupancy or
collection shall be deemed a waiver of any of the provisions of this Paragraph 23, or the
acceptance of the assignee, subtenant or occupant as tenant, or a release of Tenant from the
further performance by Tenant of Tenant’s obligations under this Lease. If a third party (other
than an assignee of this Lease or a subtenant or occupant of the Premises) pays Landlord Rent
(whether or not on behalf of Tenant) or otherwise performs Tenant’s obligations under this Lease,
Landlord’s acceptance of such Rent or performance shall not release Tenant from Tenant’s
obligations under this Lease, but such third party, at Landlord’s option, shall be deemed a tenant
under this Lease and, in such event, Tenant and such third party shall be jointly and severally
liable for Tenant’s Lease obligations. The consent by Landlord to an assignment, mortgaging,
pledging, encumbering, transfer, use, occupancy or subletting pursuant to any provision of this
Lease shall not, except as otherwise provided herein, relieve Tenant from obtaining the express
consent of Landlord to any other or further assignment, mortgaging, pledging, encumbering,
transfer, use, occupancy or subletting.

          (k) Without limiting the other transaction(s) that may constitute or result in an assignment
of this Lease, each of the following shall be deemed to be an assignment under this Lease: (1) the
merger or consolidation of Tenant with or into another entity, whether or not Tenant is the
surviving entity, except a merger of Tenant into a wholly-owned subsidiary to effect a
reincorporation in another state; (2) except in the case of a public offering of securities
registered with the Securities and Exchange Commission, a transfer, issuance, or dilution of
greater than fifty percent (50%) of the ownership or beneficial interests (whether stock,
partnership interest, membership interest or otherwise) in Tenant, either in a single transaction
or a series of transactions (whether related or unrelated), such that the ultimate owners or
holders (whether direct or indirect) of such interests on the date of this Lease cease to own more
than fifty percent (50%) of the ownership or beneficial interest in Tenant; (3) the commencement of
liquidation proceedings or the dissolution of Tenant (whether or not in connection with liquidation
proceedings); (4) the conversion or change of Tenant into another type of entity (e.g., the
conversion of a corporation into a limited liability company); (5) the reorganization or
restructuring of Tenant, including, without limitation, by a spin-off or split-off; and (6) the
change in the identity of such number of “controlling persons” as, under the organizational
documents of Tenant, is the minimum number of persons required to approve any act involving the
management or operation of the business of Tenant; provided that subheading (1) if Tenant is the
surviving entity, and subheadings (2) and (6) will not apply to Tenant if Tenant is a corporation
the stock of which is listed on a national securities exchange (as this term is used in the
Securities Exchange Act of 1934, as amended) or is publicly traded on the over-the-counter market
and prices therefor are published daily on business days in a recognized financial journal

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(a “Public Company”). For purposes of this Paragraph 23, (A) the term
“controlling persons” means the directors if Tenant is a corporation, Tenant’s
member(s) or managers if Tenant is a limited liability company, Tenant’s general partner(s) if
Tenant is a partnership, or other persons having equivalent control over said approval if another
entity, and (B) the term “organizational documents” means the charter, bylaws, and
shareholders’ agreement if Tenant is a corporation, the articles of organization or certificate of
formation and operating agreement if Tenant is a limited liability company, the partnership
agreement if Tenant is a partnership, or equivalent documents governing Tenant’s organization and
governance if Tenant is another entity.

     References in this Lease to use or occupancy by anyone other than Tenant shall not be
construed as limited to subtenants and those claiming under or through subtenants but as including
also licensees or others claiming under or through Tenant, immediately or remotely. The listing of
any name other than that of Tenant on any door of the Premises or on any sign or directory or in
any elevator in the Building, or otherwise, shall not, except as otherwise provided herein, operate
to vest in the person so named any right or interest in this Lease or in the Premises, or be deemed
to constitute, or serve as a substitute for, or any waiver of, any prior consent of Landlord
required under this Paragraph 23. Tenant shall deliver to Landlord, within fifteen (15) days after
Landlord’s request, which request Landlord may make from time to time, the following: (i) if
Tenant is a limited liability company, a list of Tenant’s members and their membership interest in
Tenant, and the name and contact information for Tenant’s manager(s); (ii) if Tenant is a
partnership, a list of Tenant’s partners, and their partnership interests in Tenant, and if any of
Tenant’s general partner(s) is a corporation or limited liability company, a list of such general
partner’s corporate directors and officers or members and managers, respectively; (iii) if Tenant
is a corporation, a list of Tenant’s shareholders that own five percent (5%) or greater of Tenant’s
stock and their ownership interest in Tenant, and a list of Tenant’s directors; and (iv) a copy of
Tenant’s organizational documents; provided that this sentence will not apply to Tenant if Tenant
is a Public Company. The foregoing shall be certified by Tenant’s authorized representative.

          (l) No assignment or sublease shall be binding on Landlord unless the proposed assignee or
subtenant delivers to Landlord a fully executed counterpart of the assignment, sublease or other
agreement that contains (1) in the case of an assignment, the assumption by the assignee of all
obligations of Tenant under this Lease, or (2) in the case of a sublease, recognition by the
subtenant of the provisions of this Paragraph 23 (including that such sublease is subject to this
Lease and all of the terms, covenants and conditions contained in this Lease), and which
assignment, sublease or other agreement shall otherwise be in form and substance reasonably
satisfactory to Landlord, but the failure or refusal of a proposed assignee or subtenant to deliver
such instrument shall not release or discharge such assignee or subtenant from the provisions and
obligations of this Paragraph 23, and, at Landlord’s option, shall constitute a Default under this
Lease. Each subletting and/or assignment pursuant to this Paragraph shall be subject to all of the
covenants, agreements, terms, provisions and conditions contained in this Lease and each of the
covenants, agreements, terms, provisions and conditions of this Lease shall be automatically
incorporated therein, except as otherwise provided in any such sublease. By accepting such
assignment or entering into such sublease, an assignee or subtenant shall be deemed to have assumed
and agreed to comply with each and every covenant, agreement, term, provision and conditions of
this Lease, other than such contrary or inconsistent obligations to which landlord has specifically
consented in writing. If Landlord shall consent to, or reasonably

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withhold its consent to, any proposed assignment or sublease, Tenant shall indemnify, defend
and hold harmless Landlord against and from any and all loss, liability, damages, costs and
expenses (including reasonable counsel fees and expenses) resulting from any claims that may be
made against Landlord by the proposed assignee or sublessee or by any brokers or other persons
claiming a commission or similar fee in connection with the proposed assignment or sublease.

          (m) Tenant acknowledges and agrees that the restrictions, conditions and limitations imposed
by this Paragraph 23 on Tenant’s ability to assign or transfer this Lease or any interest herein,
to sublet the Premises or any part thereof, to transfer or assign any right or privilege
appurtenant to the Premises, or to allow any other person to occupy or use the Premises or any
portion thereof, are, for the purposes of California Civil Code Section 1951.4, as amended from
time to time, and for all other purposes, reasonable at the time that this Lease was entered into,
and shall be deemed to be reasonable at the time that Tenant seeks to assign or transfer this Lease
or any interest herein, to sublet the Premises or any part thereof, to transfer or assign any right
or privilege appurtenant to the Premises, or to allow any other person to occupy or use the
Premises or any portion thereof. Tenant’s sole remedy if Landlord unreasonably withholds its
consent to an assignment, sublet or transfer in violation of Tenant’s rights under this Lease shall
be injunctive relief, and Tenant hereby expressly waives California Civil Code Section 1995.310,
which permits all remedies provided by law for breach of contract, including, without limitation,
the right to contract damages and the right to terminate this Lease if Landlord unreasonably
withholds consent to a transfer in violation of Tenant’s rights under this Lease, and any similar
or successor statute or law in effect or any amendment thereof during the Term.

          (n) Notwithstanding anything to the contrary contained in this Paragraph 23, Tenant, upon
written notice to Landlord, but without Landlord’s consent, may assign this Lease or sublet all or
any part of the Premises to any related entity, subsidiary, successor or affiliate of Tenant
(collectively, “Affiliates”, provided that any such Affiliate (other than a subsidiary
that is majority owned or controlled by Tenant) must have a net worth equal to or greater than the
net worth of Tenant as of the Lease Date. Concurrently with providing notice to Landlord of the
making of a sublease to an Affiliate, Tenant shall be required to submit to Landlord (i) reasonably
satisfactory evidence that the transferee is an Affiliate, (ii) reasonably satisfactory evidence of
the Affiliate’s net worth, and (iii) an executed counterpart of the transfer document. Similar
evidence that such transferee continues to be an Affiliate shall be furnished by Tenant to Landlord
within fifteen (15) days after request therefor, provided that such request is not made more often
than annually. Any assignment of sublease to an Affiliate shall not relieve Tenant from liability
under this Lease.

          (o) Notwithstanding anything to the contrary contained in this Paragraph 23, provided Tenant
occupies at least fifty-one (51%) of the Premises, Tenant may license space in the Premises to any
one or more Strategic Partners (as hereinafter defined) upon written notice to Landlord but without
Tenant being required to obtain Landlord’s prior written consent, provided (i) the aggregate square
feet of space so licensed to all Strategic Partners at each and every point in time during the
Lease Term is no more than forty-nine percent (49%) of the Premises, (ii) the term of each such
license shall expire on or before the expiration or sooner termination of the Lease, (iii) each
such license is expressly subject and subordinate to this Lease, (iv) Tenant shall ensure that each
such license does not violate any of the provisions of this Lease or cause Tenant to violate any
such provisions, and (v) no such licensee shall use, store, generate, release or

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otherwise handle in, on or about the Premises any hazardous materials except for minor amounts
thereof commonly used for office purposes (e.g., white out, copier toner). As used herein
“Strategic Partners” mean a person or entity that Tenant is working jointly with on a
product or project as part of Tenant’s business strategy. If at any time during the Lease Term
Tenant is no longer Trident Microsystems, Inc. or an Affiliate of Trident Microsystems, Inc., then
the provisions of this Paragraph 23(o) shall no longer be applicable, and all further licenses
shall be effectuated, if at all, only after Tenant first obtains Landlord’s prior written consent
thereto in accordance with this Paragraph 23. If Landlord determines in its good faith discretion
that any license to an Strategic Partner effected pursuant to this Paragraph 23(o) is inconsistent
with the standards of a Class A office project, is detrimental to the reputation or standing of the
Project, or violates any exclusives within the Project, then Tenant shall cause such license to be
terminated within thirty (30) days’ written notice from Landlord.

     24. Default.

          (a) Tenant’s Default. The occurrence of any one of the following events shall constitute an
event of default on the part of Tenant (“Default”):

               (i) The abandonment of the Premises by Tenant for a period of ten (10) consecutive days or
which would cause any insurance policy to be invalidated or otherwise lapse. Tenant agrees to
notice and service of notice as provided in this Lease and waives any right to any other or further
notice or service notice;

               (ii) Failure to pay any installment of Rent or any other monies due and payable hereunder, and
such failure shall not have been cured within five (5) days after written notice thereof from
Landlord;

               (iii) A general assignment by Tenant or any guarantor or surety of Tenant’s obligations
hereunder (collectively, “Guarantor”) for the benefit of creditors;

               (iv) The filing of a voluntary petition in bankruptcy by Tenant or any Guarantor, the filing
by Tenant or any Guarantor of a voluntary petition for an arrangement, the filing by or against
Tenant or any Guarantor of a petition, voluntary or involuntary, for reorganization, or the filing
of an involuntary petition by the creditors of Tenant or any Guarantor, said involuntary petition
remaining undischarged for a period of sixty (60) days;

               (v) Receivership, attachment, or other judicial seizure of substantially all of Tenant’s
Property, such attachment or other seizure remaining undismissed or undischarged for a period of
sixty (60) days after the levy thereof;

               (vi) Death or disability of Tenant or any Guarantor, if Tenant or such Guarantor is a natural
person, or the failure by Tenant or any Guarantor to maintain its legal existence, if Tenant or
such Guarantor is a corporation, partnership, limited liability company, trust or other legal
entity;

               (vii) Failure of Tenant to execute and deliver to Landlord any estoppel certificate,
subordination agreement, or lease amendment within the time periods and in the manner required

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by Paragraphs 30, 31 or 42, and/or failure by Tenant to deliver to Landlord any financial
statement within the time period and as required by Paragraph 40;

               (viii) An assignment or sublease, or attempted assignment or sublease, of this Lease or the
Premises by Tenant contrary to the provision of Paragraph 23, unless such assignment or sublease is
expressly conditioned upon Tenant having received Landlord’s consent thereto;

               (ix) Failure of Tenant to restore the Security Deposit to the amount and within the time
period provided in Paragraph 7 above;

               (x) Failure to perform any of Tenant’s covenants, agreements or obligations hereunder (except
those failures specified as events of Default in any other subparagraphs of this Paragraph 24,
which shall be governed by such other Paragraphs), which failure continues for thirty (30) days
after written notice thereof from Landlord to Tenant, provided that, if Tenant has exercised
reasonable diligence to cure such failure and such failure cannot be cured within such thirty (30)
day period despite reasonable diligence, Tenant shall not be in default under this subparagraph so
long as Tenant thereafter diligently and continuously prosecutes the cure to completion and
actually completes such cure within sixty (60) days after the giving of such written notice;

               (xi) Chronic delinquency by Tenant in the payment of Rent, or any other periodic payments
required to be paid by Tenant under this Lease. “Chronic delinquency” means failure by
Tenant to pay Rent, or any other payments required to be paid by Tenant under this Lease within
three (3) business days after written notice thereof for any three (3) months (consecutive or
nonconsecutive) during any period of twelve (12) months. In the event of a Chronic delinquency, in
addition to Landlord’s other remedies for Default provided in this Lease, at Landlord’s option,
Landlord shall have the right to require that Rent be paid by Tenant quarterly, in advance;

               (xii) Chronic overuse by Tenant or Tenant’s Agents of the number of undesignated parking
spaces set forth in the Basic Lease Information. “Chronic overuse” means use by Tenant
or Tenant’s Agents of a number of parking spaces greater than the number of parking spaces set
forth in the Basic Lease Information more than three (3) times during any calendar year, after
written notice by Landlord;

               (xiii) Any insurance required to be maintained by Tenant pursuant to this Lease shall be
canceled or terminated or shall expire or be reduced or materially changed, except as permitted in
this Lease;

               (xiv) Any failure by Tenant to discharge any lien or encumbrance placed on the Project or any
part thereof in violation of this Lease within twenty (20) business days after the date such lien
or encumbrance is filed or recorded against the Project or any part thereof;

               (xv) Tenant’s failure to commence business operations in the Premises within one hundred
eighty (180) days following the Commencement Date, subject to delays beyond Tenant’s reasonable
control (other than financial difficulty); and

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               (xvi) Any representation of Tenant herein or in any financial statement or other materials
provided by Tenant or any guarantor of Tenant’s obligations under this Lease shall prove to be
untrue or inaccurate in any material respect, or any such financial statements or other materials
shall have omitted any material fact.

Tenant agrees that any notice given by Landlord pursuant to Paragraph 24(a)(xi) or (xii) above
shall satisfy the requirements for notice under California Code of Civil Procedure Section 1161, et
seq., and Landlord shall not be required to give any additional notice in order to be entitled to
commence an unlawful detainer proceeding.

          (b) Landlord’s Default. If Landlord fails to perform its obligations under this Lease,
Landlord shall not be in default unless Landlord fails to perform such obligations within thirty
(30) days after notice by Tenant to Landlord specifying the nature of the obligations Landlord has
failed to perform; provided, however, that if the nature of Landlord’s obligations is such that
more than thirty (30) days are required for performance, then Landlord shall not be in default if
Landlord commences performance within such thirty (30) day period and thereafter diligently
prosecutes the same to completion. If Landlord is unable to fulfill or is delayed in fulfilling
any of Landlord’s obligations under this Lease by reason of floods, earthquakes, lightning, or any
other acts of God, accidents, breakage, repairs, strikes, lockouts, other labor disputes, inability
to obtain utilities or materials, or by any other reason beyond Landlord’s reasonable control, or
if Landlord enters the Premises or makes any Alterations to the Premises, the Building or any
portion thereof pursuant to this Lease, then no such inability or delay by Landlord and no such
entry or work by Landlord shall constitute an actual or constructive eviction, in whole or in part,
or entitle Tenant to any abatement or diminution of Rent, or relieve Tenant from any of its
obligations under this Lease, or impose any liability upon Landlord or its agents. This Lease
shall be construed as though the covenants herein between Landlord and Tenant are independent, and
Tenant shall not be entitled to any setoff, offset, abatement or deduction of Rent or other amounts
due Landlord hereunder if Landlord fails to perform its obligations hereunder. Notwithstanding any
provision of this Lease to the contrary, Tenant’s sole remedy for a default of this Lease by
Landlord shall be an action for damages, injunction or specific performance; Tenant shall have no
right to terminate this Lease on account of any breach or default by Landlord.

     25. Landlord’s Remedies.

          (a) Termination. In the event of any Default by Tenant, then in addition to any other
remedies available to Landlord at law or in equity and under this Lease, Landlord may terminate
this Lease immediately and all rights of Tenant hereunder by giving written notice to Tenant of
such intention to terminate. If Landlord shall elect to so terminate this Lease, then Landlord may
recover from Tenant:

               (i) the worth at the time of award of any unpaid Rent and any other sums due and payable which
have been earned at the time of such termination; plus

               (ii) the worth at the time of award of the amount by which the unpaid Rent and any other sums
due and payable which would have been earned after termination until the time

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of award exceeds the amount of such rental loss Tenant proves could have been reasonably
avoided; plus

               (iii) the worth at the time of award of the amount by which the unpaid Rent and any other sums
due and payable for the balance of the term of this Lease after the time of award exceeds the
amount of such rental loss that Tenant proves could be reasonably avoided; plus

               (iv) any other amount necessary to compensate Landlord for all the detriment proximately
caused by Tenant’s failure to perform its obligations under this Lease or which in the ordinary
course would be likely to result therefrom, including, without limitation, (A) any costs or
expenses incurred by Landlord (1) in retaking possession of the Premises; (2) in maintaining,
repairing, preserving, restoring, replacing, cleaning, altering, remodeling or rehabilitating the
Premises or any affected portions of the Building or the Project, including such actions undertaken
in connection with the reletting or attempted reletting of the Premises to a new tenant or tenants;
(3) for leasing commissions, advertising costs and other expenses of reletting the Premises; or (4)
in carrying the Premises, including taxes, insurance premiums, utilities and security precautions;
(B) any unearned brokerage commissions paid in connection with this Lease; and (C) any concession
made or paid by Landlord to the benefit of Tenant including, but not limited to, any moving
allowances, contributions, payments or loans by Landlord for tenant improvements or build-out
allowances (including, without limitation, any unamortized portion of the Tenant Improvements
Allowance (such Tenant Improvements Allowance to be amortized over the Term in the manner
reasonably determined by Landlord), if any, and any outstanding balance (principal and accrued
interest) of the Tenant Improvements Loan, if any), or assumptions by Landlord of any of Tenant’s
previous lease obligations; plus

               (v) such reasonable attorneys’ fees and expenses incurred by Landlord as a result of a
Default, and costs in the event suit is filed by Landlord to enforce such remedy; and plus

               (vi) at Landlord’s election, such other amounts in addition to or in lieu of the foregoing as
may be permitted from time to time by applicable law.

As used in subparagraphs (i) and (ii) above, the “worth at the time of award” is
computed by allowing interest at an annual rate equal to twelve percent (12%) per annum or the
maximum rate permitted by law, whichever is less. As used in subparagraph (iii) above, the “worth
at the time of award” is computed by discounting such amount at the discount rate of the Federal
Reserve Bank of San Francisco at the time of award, plus one percent (1%). Tenant hereby waives
for Tenant and all those claiming under Tenant all right now or hereafter existing to redeem by
order or judgment of any court or by any legal process or writ, Tenant’s right of occupancy of the
Premises after any termination of this Lease.

          (b) No Right of Redemption. Tenant waives redemption or relief from forfeiture under
California Code of Civil Procedure Sections 1174 and 1179, or under any other pertinent present or
future Law, in the event Tenant is evicted or Landlord takes possession of the Premises by reason
of any Default of Tenant hereunder.

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          (c) Continuation of Lease. In the event of any Default by Tenant, then in addition to any
other remedies available to Landlord at law or in equity and under this Lease, Landlord shall have
the remedy described in California Civil Code Section 1951.4 (Landlord may continue this Lease in
effect after Tenant’s Default and abandonment and recover Rent as it becomes due, provided that
Tenant has the right to sublet or assign, subject only to reasonable limitations). In addition,
Landlord shall not be liable in any way whatsoever for its failure or refusal to relet the
Premises. For purposes of this Paragraph 25(c), the following acts by Landlord will not constitute
the termination of Tenant’s right to possession of the Premises:

               (i) Acts of maintenance or preservation or efforts to relet the Premises, including, but not
limited to, alterations, remodeling, redecorating, repairs, replacements and/or painting as
Landlord shall consider advisable for the purpose of reletting the Premises or any part thereof, or

               (ii) The appointment of a receiver upon the initiative of Landlord to protect Landlord’s
interest under this Lease or in the Premises.

          (d) Re-entry. In the event of any Default by Tenant, Landlord shall also have the right to
re-enter the Premises and remove all persons and property from the Premises in accordance with
applicable Laws; such property may be removed and stored in a public warehouse or elsewhere at the
cost of and for the account of Tenant.

          (e) Reletting. In the event of the abandonment of the Premises by Tenant or if Landlord
elects to re-enter as provided in Paragraph 25(d) or takes possession of the Premises pursuant to
legal proceeding or pursuant to any notice provided by law, then without terminating Tenant’s
contractual liability for Landlord’s damages, Landlord may from time to time relet the Premises or
any part thereof for such term or terms and at such rental or rentals and upon such other terms and
conditions as Landlord in its sole discretion may deem advisable with the right to make alterations
and repairs to the Premises in Landlord’s sole discretion. If Landlord shall elect to so relet,
then rentals received by Landlord from such reletting shall be applied in the following order: (i)
to reasonable attorneys’ fees incurred by Landlord as a result of a Default and costs in the event
suit is filed by Landlord to enforce such remedies; (ii) to the payment of any indebtedness other
than Rent due hereunder from Tenant to Landlord; (iii) to the payment of any costs of such
reletting; (iv) to the payment of the costs of any alterations and repairs to the Premises; (v) to
the payment of Rent due and unpaid hereunder; and (vi) the residue, if any, shall be held by
Landlord and applied in payment of future Rent and other sums payable by Tenant hereunder as the
same may become due and payable hereunder. Should that portion of such rentals received from such
reletting during any month, which is applied to the payment of Rent hereunder, be less than the
Rent payable during such month by Tenant, then Tenant shall pay such deficiency to Landlord. Such
deficiency shall be calculated and paid monthly. Tenant shall also pay to Landlord, as soon as
ascertained, any costs and expenses incurred by Landlord in such reletting or in making such
alterations and repairs not covered by the rentals received from such reletting.

          (f) Termination. No re-entry or taking of possession of the Premises by Landlord pursuant to
this Paragraph 25 shall be construed as an election to terminate this Lease unless a written notice
of such intention is given to Tenant or unless the termination thereof is decreed by

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a court of competent jurisdiction. Notwithstanding any reletting without termination by
Landlord because of any Default by Tenant, Landlord may at any time after such reletting elect to
terminate this Lease for any such Default.

          (g) Cumulative Remedies. The remedies herein provided are not exclusive and Landlord shall
have any and all other remedies provided herein or by law or in equity including, without
limitation, any and all rights and remedies of Landlord under California Civil Code Section 1951.8,
California Code of Civil Procedure Section 1161 et seq., or any similar, successor or related
provision of applicable Laws.

          (h) No Surrender. No act or conduct of Landlord, whether consisting of the acceptance of the
keys to the Premises, or otherwise, shall be deemed to be or constitute an acceptance of the
surrender of the Premises by Tenant prior to the expiration of the Term, and such acceptance by
Landlord of surrender by Tenant shall only flow from and must be evidenced by a written
acknowledgment of acceptance of surrender signed by Landlord. The surrender of this Lease by
Tenant, voluntarily or otherwise, shall not work a merger unless Landlord elects in writing that
such merger take place, but shall operate as an assignment to Landlord of any and all existing
subleases, or Landlord may, at its option, elect in writing to treat such surrender as a merger
terminating Tenant’s estate under this Lease, and thereupon Landlord may terminate any or all such
subleases by notifying the sublessee of its election so to do within five (5) days after such
surrender.

     26. Right to Perform Obligations.

          (a) Without limiting the rights and remedies of Landlord contained in Paragraph 25 above, if
Tenant shall be in Default in the performance of any of the terms, provisions, covenants or
conditions to be performed or complied with by Tenant pursuant to this Lease, then Landlord may at
Landlord’s option, without any obligation to do so, and without notice to Tenant perform any such
term, provision, covenant, or condition, or make any such payment and Landlord by reason of so
doing shall not be liable or responsible for any loss or damage thereby sustained by Tenant or
anyone holding under or through Tenant or any of Tenant’s Agents.

          (b) Without limiting the rights of Landlord under Paragraph 26(a) above, Landlord shall have
the right at Landlord’s option, without any obligation to do so, to perform any of Tenant’s
covenants or obligations under this Lease without notice to Tenant in the case of an emergency, as
reasonably determined by Landlord.

          (c) If Landlord performs any of Tenant’s obligations hereunder in accordance with this
Paragraph 26, the full amount of the cost and expense incurred or the payment so made or the amount
of the loss so sustained shall immediately be owing by Tenant to Landlord, and Tenant shall
promptly pay to Landlord upon demand, as Additional Rent, the full amount thereof with interest
thereon from the date of payment by Landlord at the lower of (i) twelve percent (12%) per annum, or
(ii) the highest rate permitted by applicable Law.

          (d) Notwithstanding any provision set forth in the Lease to the contrary, if (i) Tenant
provides prior written notice to Landlord of an event or circumstance which requires the action of
Landlord with respect to repair and/or maintenance, (ii) Landlord is, in fact, required to

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perform repairs and/or maintenance under the terms of this Lease, (iii) Landlord fails to
commence such action within a reasonable period of time, given the circumstances, after the receipt
of such notice, but in any event not later than thirty (30) days after receipt of such notice (or
within five (5) business days in the case of an emergency), and (d) Landlord’s failure to take such
action materially and adversely affects Tenant’s use and/or occupancy of the Premises, then Tenant
may proceed to take the required action after delivery of an additional ten (10) business days
notice to Landlord specifying that the thirty (30) day period has expired, the specific action
required, and that Tenant intends to take or commence such required action. If such action is
required under the terms of this Lease to be taken by Landlord and is not commenced by Landlord
within such ten (10) business day period, then Tenant shall be entitled to prompt reimbursement by
Landlord of Tenant’s reasonable and necessary, actual out-of-pocket costs and expenses in taking
such action (and only such action as specified in the ten (10) day notice given to Landlord). Such
amounts shall be promptly reimbursed by Landlord on the receipt from Tenant of a detailed invoice
setting forth a particularized breakdown of the costs and expenses incurred in connection with the
action taken by Tenant. If Landlord fails to reimburse Tenant for any such costs and expenses and
Tenant subsequently obtains a judgment against Landlord for the amount of any such costs and
expenses, then unless Landlord pays the amount of such judgment to Tenant within thirty (30) days
after a final judgment has been entered, Tenant may offset the amount of such judgment against the
rent payable under this Lease until such time as the amount of such judgment has been paid in full.
In the event Tenant takes such action, and such work affects the Systems serving the Building or
the Building structure, Tenant shall use only those contractors used by Landlord in the Building
for work on such Systems or structure unless such contractors are unwilling or unable to perform,
or timely perform, such work, in which event Tenant may utilize the services of any other qualified
contractor which normally and regularly performs similar work in other first-class buildings in the
greater San Francisco Bay Area.

     27. Attorneys’ Fees.

          (a) If either party hereto fails to perform any of its obligations under this Lease or if any
dispute arises between the parties hereto concerning the meaning or interpretation of any provision
of this Lease, then the defaulting party or the party not prevailing in such dispute, as the case
may be, shall pay any and all costs and expenses incurred by the other party on account of such
default and/or in enforcing or establishing its rights hereunder, including, without limitation,
court costs and reasonable attorneys’ fees and disbursements. Any such attorneys’ fees and other
expenses incurred by either party in enforcing a judgment in its favor under this Lease shall be
recoverable separately from and in addition to any other amount included in such judgment, and such
attorneys’ fees obligation is intended to be severable from the other provisions of this Lease and
to survive and not be merged into any such judgment.

          (b) Without limiting the generality of Paragraph 27(a) above, if Landlord utilizes the
services of an attorney for the purpose of collecting any Rent due and unpaid by Tenant or in
connection with any other breach of this Lease by Tenant, Tenant agrees to pay Landlord actual
attorneys’ fees and expenses as determined by Landlord for such services, regardless of the fact
that no legal action may be commenced or filed by Landlord.

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     28. Taxes. Tenant shall be liable for and shall pay directly to the taxing
authority, prior to delinquency, all taxes levied against Tenant’s Property. If any Alteration
installed by Tenant or any of Tenant’s Property is assessed and taxed with the Project or the
Building, Tenant shall pay such taxes to Landlord within ten (10) days after delivery to Tenant of
a statement therefor.

     29. Effect of Conveyance. “Landlord” means, from time to time, the then current
owner of the Building or the Project. In the event of any sale of the Building or the Project,
Landlord shall be and hereby is entirely freed and relieved of all covenants and obligations of
Landlord hereunder that become due after the date of such sale, and it shall be deemed and
construed, without further agreement between the parties and the purchaser at any such sale, that
the purchaser of the Building or the Project has assumed and agreed to carry out any and all
covenants and obligations of Landlord hereunder.

     30. Estoppel Certificates.

          (a) From time to time, upon written request of Landlord, Tenant shall execute, acknowledge and
deliver to Landlord or its designee, an Estoppel Certificate in substantially the form attached
hereto as Exhibit E and with any other statements reasonably requested by Landlord or
its designee. Any such Estoppel Certificate may be relied upon by a prospective purchaser of
Landlord’s interest or a mortgagee of (or holder of a deed of trust encumbering) Landlord’s
interest or assignee of any mortgage or deed of trust upon Landlord’s interest in the Premises. If
Tenant fails to provide such certificate within ten (10) days of receipt by Tenant of a written
request by Landlord as herein provided, such failure shall, at Landlord’s election, constitute a
Default under this Lease, and Tenant shall be deemed to have given such certificate without
modification and admitted the accuracy of any information supplied by Landlord to a prospective
purchaser or mortgagee or deed of trust holder.

          (b) Landlord hereby agrees to provide to Tenant an estoppel certificate signed by Landlord,
containing the same types of information, and within the same periods of time, as are required by
Tenant above in Paragraph 31(a), except such changes as are reasonably necessary to reflect that
the Estoppel Certificate is being granted and signed by Landlord to Tenant or Tenant’s lender,
assignee or sublessee, rather than from Tenant to Landlord or to a lender or purchaser.

     31. Subordination. At the option of Landlord, this Lease, and all rights of Tenant
hereunder, are and shall be subject and subordinate to all ground leases, overriding leases and
underlying leases affecting the Building or the Project now or hereafter existing and each of the
terms, covenants and conditions thereto (the “Superior Lease(s)”), and to all mortgages
or deeds of trust which may now or hereafter affect the Building, the Property or any of such
leases and each of the terms, covenants and conditions thereto (the “Superior
Mortgage(s)”), whether or not such mortgages or deeds of trust shall also cover other lands,
buildings or leases, to each and every advance made or hereafter to be made under such mortgages or
deeds of trust, and to all renewals, modifications, replacements and extensions of such leases and
such mortgages or deeds of trust and spreaders and consolidations of such mortgages or deeds of
trust; provided Tenant must receive from the holder of such Superior Lease or Superior Mortgage a
non-disturbance agreement in the form attached hereto as Exhibit F or otherwise in form
and substance reasonably acceptable to Tenant (the “Non-Disturbance Agreement”, in
consideration of,

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and as a condition precedent to Tenant agreeing to subordinate this Lease to such Superior
Lease or such Superior Mortgage in accordance with this Paragraph 31. Landlord hereby represents
and warrants to Tenant that no Superior Lease or Superior Mortgage exists on the Premises or the
Building as of the execution date of this Lease.

     Tenant shall promptly execute, acknowledge and deliver any reasonable instrument that
Landlord, the lessor under any such lease or the holder of any such mortgage or trust deed or any
of their respective successors in interest may reasonably request to evidence such subordination,
provided such instrument contains the protections provided to Tenant in the Non-Disturbance
Agreement. Without limiting the foregoing, Tenant’s failure to execute, acknowledge and deliver
such instrument within the aforesaid time period shall constitute a Default hereunder. As used
herein the lessor of a Superior Lease or its successor in interest is herein called
“Superior Lessor”; and the holder of a Superior Mortgage is herein called
“Superior Mortgagee.”

     Notwithstanding the foregoing provisions of this Paragraph 31 or any other provision in this
Lease, if a Superior Lease or Superior Mortgage is hereafter placed against or affecting any or all
of the Building or the Premises or any or all of the Building and improvements now or at any time
hereafter constituting a part of or adjoining the Building, Tenant will only be required to
subordinate this Lease to such Superior Lease or Superior Mortgage if the holder thereof provides a
Non-Disturbance Agreement, whereby the holder of such Superior Lease or Superior Mortgage agrees
that Tenant, upon paying the Base Rent and all of the Additional Rent and other charges herein
provided for, and observing and complying with this Lease, shall lawfully and quietly hold, occupy
and enjoy the Premises during the Term (including any exercised renewal term), without hindrance or
interference from anyone claiming by or through said Superior Mortgagee or Superior Lessor and that
said Superior Mortgagee or Superior Lessor shall respect Tenant’s rights under the Lease and, upon
succeeding to Landlord’s interest in the Building and Lease, shall observe and comply with all of
Landlord’s duties under the Lease.

     If any Superior Lessor or Superior Mortgagee shall succeed to the rights of Landlord under
this Lease, whether through possession or foreclosure action or delivery of a new lease or deed
(such party so succeeding to Landlord’s rights herein called “Successor Landlord”) and
acknowledges Tenant’s rights under this Lease, then Tenant shall attorn to and recognize such
Successor Landlord as Tenant’s landlord under this Lease (without the need for further agreement)
and shall promptly execute and deliver any reasonable instrument that such Successor Landlord may
reasonably request to evidence such attornment. This Lease shall continue in full force and effect
as a direct lease between the Successor Landlord and Tenant upon all of the terms, conditions and
covenants as are set forth in this Lease, except that the Successor Landlord shall not (a) be
liable for any previous act or omission of Landlord under this Lease, except to the extent such act
or omission shall constitute a continuing Landlord default hereunder; (b) be subject to any offset,
not expressly provided for in this Lease; or (c) be bound by any previous modification of this
Lease or by any previous prepayment of more than one month’s Base Rent, unless such modification or
prepayment shall have been expressly approved in writing by the Successor Landlord (or predecessor
in interest).

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     32. Environmental Covenants.

          (a) Prior to executing this Lease, Tenant has completed, executed and delivered to Landlord a
Hazardous Materials Disclosure Certificate (“Initial Disclosure Certificate”), a fully
completed copy of which is attached hereto as Exhibit G and incorporated herein by this
reference. Tenant covenants, represents and warrants to Landlord that the information on the
Initial Disclosure Certificate is true and correct and accurately describes the Hazardous Materials
which will be manufactured, treated, used or stored on or about the Premises by Tenant or Tenant’s
Agents. Tenant shall, on each anniversary of the Commencement Date and at such other times as
Tenant desires to manufacture, treat, use or store on or about the Premises new or additional
Hazardous Materials which were not listed on the Initial Disclosure Certificate, complete, execute
and deliver to Landlord an updated Disclosure Certificate (each, an “Updated Disclosure
Certificate”) describing Tenant’s then current and proposed future uses of Hazardous Materials
on or about the Premises, which Updated Disclosure Certificates shall be in the same format as set
forth in Exhibit G or in such updated format as Landlord may require from time to time.
Tenant shall deliver an Updated Disclosure Certificate to Landlord not less than thirty (30) days
prior to the date Tenant intends to commence the manufacture, treatment, use or storage of new or
additional Hazardous Materials on or about the Premises, and Landlord shall have the right to
approve or disapprove such new or additional Hazardous Materials in its sole and absolute
discretion. Tenant shall make no use of Hazardous Materials on or about the Premises except as
described in the Initial Disclosure Certificate or as otherwise approved by Landlord in writing in
accordance with this Paragraph 32(a).

          (b) As used in this Lease, the term “Hazardous Materials” means (i) any substance
or material that is included within the definitions of “hazardous substances,” “hazardous
materials,” “toxic substances,” “pollutant,” “contaminant,” “hazardous waste,” or “solid waste” in
any Environmental Law; (ii) petroleum or petroleum derivatives, including crude oil or any fraction
thereof, all forms of natural gas, and petroleum products or by-products or waste; (iii)
polychlorinated biphenyls (“PCBs”); (iv) asbestos and asbestos containing materials (whether
friable or non-friable); (v) lead and lead-based paint or other lead containing materials (whether
friable or non-friable); (vi) urea formaldehyde; (vii) microbiological pollutants; (viii) batteries
or liquid solvents or similar chemicals; (ix) radon gas; and (x) mildew, fungus, mold, bacteria
and/or other organic spore material.

          (c) “Environmental Laws” means all statutes, terms, conditions, limitations,
restrictions, standards, prohibitions, obligations, schedules, plans and timetables that are
contained in or promulgated pursuant to any federal, state or local laws (including rules,
regulations, ordinances, codes, judgments, orders, decrees, contracts, permits, stipulations,
injunctions, the common law, court opinions, and demand or notice letters issued, entered,
promulgated or approved thereunder), relating to pollution or the protection of the environment,
including laws relating to emissions, discharges, releases or threatened releases of Hazardous
Materials into ambient air, surface water, ground water or lands or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of
Hazardous Materials including, but not limited to, the: Comprehensive Environmental Response
Compensation and Liability Act of 1980 (CERCLA), as amended by the Superfund Amendments and
Reauthorization Act of 1986 (SARA), 42 U.S.C. 9601 et seq.; Solid Waste Disposal Act, as amended by
the Resource Conservation and Recovery Act of 1976 (RCRA), 42 U.S.C. 6901

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et seq.; Federal Water Pollution Control Act, 33 U.S.C. 1251 et seq.; Toxic Substances Control
Act, 15 U.S.C. 2601 et seq.; Clean Air Act, 42 U.S.C. 7401 et seq.; and the Safe Drinking Water
Act, 42 U.S.C. § 300f et seq. “Environmental Laws” shall not include laws relating to industrial
hygiene or worker safety, except to the extent that such laws address asbestos and asbestos
containing materials (whether friable or non-friable) or lead and lead based paint or other lead
containing materials.

          (d) During its use and occupancy of the Premises Tenant shall: (i) not (A) permit Hazardous
Materials to be present on or about the Premises except in a manner and quantity necessary for the
ordinary performance of Tenant’s business or for normal quantities of cleaning and other business
supplies customarily used in a warehouse (B) release, discharge or dispose of any Hazardous
Materials on, in, at, under, or emanating from, the Premises, the Building or the Project; (ii)
comply with all Environmental Laws relating to the Premises and the use of Hazardous Materials on
or about the Premises and not engage in or permit others to engage in any activity at the Premises
in violation of any Environmental Laws; and (iii) immediately notify Landlord of (A) any inquiry,
test, investigation or enforcement proceeding by any governmental agency or authority against
Tenant, Landlord or the Premises, the Building or the Project relating to any Hazardous Materials
or under any Environmental Laws or (B) the occurrence of any event or existence of any condition
that would cause a breach of any of the covenants set forth in this Paragraph 32.

          (e) If Tenant’s use of Hazardous Materials on or about the Premises results in a release,
discharge or disposal of Hazardous Materials on, in, at, under, or emanating from, the Premises,
the Building or the Project, or if Tenant becomes aware of Hazardous Materials at the Premises.
Tenant shall promptly notify Landlord of same (and, in any event, deliver such notice within two
(2) days of learning of same) and to the extent caused by Tenant or its Agents, investigate, clean
up, remove or remediate such Hazardous Materials in full compliance with: (i) the requirements of
(A) all Environmental Laws and (B) any governmental agency or authority responsible for the
enforcement of any Environmental Laws; and (ii) any additional requirements of Landlord that are
reasonably necessary to protect the value of the Premises, the Building or the Project.

     Landlord shall also have the right, but not the obligation, to take whatever action with
respect to any such Hazardous Materials that it deems necessary, in Landlord’s sole discretion, to
protect the value of the Premises or the property in which the Premises are located. All costs and
expenses paid or incurred by Landlord in the exercise of such right shall be payable by Tenant
promptly upon demand.

          (f) Upon reasonable notice to Tenant, Landlord may inspect the Premises and surrounding areas
for the purpose of determining whether there exists on or about the Premises any Hazardous Material
or other condition or activity that is in violation of this Lease or of any Environmental Laws.

          (g) Landlord shall have the right, but not the obligation, subsequent to a Default, without in
any way limiting Landlord’s other rights and remedies under this Lease, to enter upon the Premises,
or to take such other actions as it deems necessary or advisable, to investigate, clean up, remove
or remediate any Hazardous Materials or contamination by Hazardous

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Materials present on, in, at, under, or emanating from, the Premises, the Building or the
Project in violation of Tenant’s obligations under this Lease or under any Environmental Laws.
Notwithstanding any other provision of this Lease, if Tenant is in Default, Landlord shall also
have the right, at its election, in its own name or as Tenant’s agent, to negotiate, defend,
approve and appeal, at Tenant’s expense, any action taken or order issued by any governmental
agency or authority with regard to any such Hazardous Materials or contamination by Hazardous
Materials. All costs and expenses paid or incurred by Landlord in the exercise of the rights set
forth in this Paragraph 32 shall be payable by Tenant promptly upon demand.

          (h) Tenant shall surrender the Premises to Landlord upon the expiration or earlier termination
of this Lease free of Hazardous Materials and in a condition which complies with all Environmental
Laws and any additional requirements of Landlord that are reasonably necessary to protect the value
of the Premises, the Building or the Project. Such Tenant obligations shall be in addition to any
other surrender requirements in this Lease and shall survive the expiration or earlier termination
of this Lease. If it is determined by Landlord that the condition of all or any portion of the
Premises, the Building, and/or the Project is not in compliance with this Lease with respect to
Hazardous Materials, debris, or waste, including, without limitation, all Environmental Laws, at
the expiration or earlier termination of this Lease, then at Landlord’s sole option, Landlord may
require Tenant to hold over possession of the Premises until Tenant can surrender the Premises to
Landlord in the condition in which the Premises existed as of the Commencement Date. The burden of
proof hereunder shall be upon Tenant. For purposes hereof, the term “normal wear and tear” shall
not include any deterioration in the condition or diminution of the value of any portion of the
Premises, the Building, and/or the Project in any manner whatsoever related to directly, or
indirectly, Hazardous Materials. Any such holdover by Tenant will be with Landlord’s consent, will
not be terminable by Tenant in any event or circumstance and will otherwise be subject to the
provisions of Paragraph 35 of this Lease.

          (i) Tenant shall indemnify and hold harmless Landlord from and against any and all claims,
damages, fines, judgments, penalties, costs, losses (including, without limitation, loss in value
of the Premises, the Building or the Project, liabilities and expenses (including attorneys’,
consultants’ and experts’ fees)) incurred by Landlord during or after the Term and directly
attributable to (i) any Hazardous Materials placed on or about the Premises, the Building or the
Project by Tenant or Tenant’s Agents or resulting from the action or inaction of Tenant or Tenant’s
Agents, or (ii) Tenant’s breach of any provision of this Paragraph 32. This indemnification
includes, without limitation, any and all costs incurred by Landlord due to any investigation of
the site or any cleanup, removal or restoration mandated by a federal, state or local agency or
political subdivision.

          (j) Notwithstanding anything to the contrary in this Paragraph 32 or any other provision of
this Lease, Tenant shall have no liability, responsibility or indemnity obligations for any
Hazardous Materials located in, on or about the Premises, the Building or the Project (i) as of the
execution date of this Lease, or (ii) released, discharged or disposed of in, on or about the
Premises, the Building or the Project by Landlord or Landlord’s Agents at any time
(“Landlord’s Hazardous Materials”).

          (k) The provisions of this Paragraph 32 shall survive the expiration or earlier termination of
this Lease.

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     33. Notices. All notices and demands which are required or may be permitted to be
given to either party by the other hereunder shall be in writing and shall be sent by United States
mail, postage prepaid, certified, or by personal delivery or overnight courier, addressed to the
addressee at Tenant’s Address or Landlord’s Address as specified in the Basic Lease Information, or
to such other place as either party may from time to time designate in a notice to the other party
given as provided herein. Copies of all notices and demands given to Landlord shall additionally
be sent to Landlord’s property manager at the address specified in the Basic Lease Information or
at such other address as Landlord may specify in writing from time to time. Notice shall be deemed
given upon actual receipt (or attempted delivery if delivery is refused). In no event shall either
party use a post office box or other address which does not accept overnight delivery.

     34. Waiver. The waiver of any breach of any term, covenant or condition of this
Lease shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent
breach of the same or any other term, covenant or condition herein contained. The subsequent
acceptance of Rent by Landlord shall not be deemed a waiver of any preceding breach by Tenant,
other than the failure of Tenant to pay the particular rental so accepted, regardless of Landlord’s
knowledge of such preceding breach at the time of acceptance of such Rent. No delay or omission in
the exercise of any right or remedy of Landlord in regard to any Default by Tenant shall impair
such a right or remedy or be construed as a waiver. Any waiver by Landlord of any Default must be
in writing and shall not be a waiver of any other Default concerning the same or any other
provisions of this Lease.

     35. Holding Over. Any holding over after the expiration of the Term, without the
express written consent of Landlord, shall constitute a Default and, without limiting Landlord’s
remedies provided in this Lease, such holding over shall be construed to be a tenancy at
sufferance, at a rental rate equal to (i) the greater of the Base Rent last due in this Lease or
fair market value for the Premises (as reasonably determined by Landlord) for the first thirty (30)
days after the expiration of the Term, and (ii) the greater of one hundred fifty percent (150%) of
the Base Rent last due in this Lease or fair market value for the Premises (as reasonably
determined by Landlord) for any period after such thirty (30) day period, plus Additional Rent, and
shall otherwise be on the terms and conditions herein specified, so far as applicable; provided,
however, that in no event shall any renewal or expansion option, option to purchase, or other
similar right or option contained in this Lease be deemed applicable to any such tenancy at
sufferance. If the Premises are not surrendered at the end of the Term or sooner termination of
this Lease, and in accordance with the provisions of Paragraphs 11 and 32(h), Tenant shall
indemnify, defend and hold Landlord harmless from and against any and all loss or liability
resulting from delay by Tenant in so surrendering the Premises including, without limitation, any
loss or liability resulting from any claim against Landlord made by any succeeding tenant or
prospective tenant founded on or resulting from such delay and losses to Landlord due to lost
opportunities to lease any portion of the Premises to any such succeeding tenant or prospective
tenant, together with, in each case, actual attorneys’ fees and costs.

     36. Successors and Assigns. The terms, covenants and conditions of this Lease shall,
subject to the provisions as to assignment, apply to and bind the heirs, successors, executors,
administrators and assigns of all of the parties hereto. If Tenant shall consist of more than one
entity or person, the obligations of Tenant under this Lease shall be joint and several.

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     37. Time. Time is of the essence of this Lease and each and every term, condition
and provision herein.

     38. Brokers. Landlord and Tenant each represents and warrants to the other that
neither it nor its officers or agents nor anyone acting on its behalf has dealt with any real
estate broker except the Broker specified in the Basic Lease Information in the negotiating or
making of this Lease, and each party agrees to indemnify and hold harmless the other from any claim
or claims, and costs and expenses, including attorneys’ fees, incurred by the indemnified party in
conjunction with any such claim or claims of any other broker or brokers to a commission in
connection with this Lease as a result of the actions of the indemnifying party. Provided that
this Lease is fully executed by the parties hereto, then Landlord shall pay a commission to Broker
pursuant to a separate written agreement between Landlord and Broker.

     39. Limitation of Liability. In the event of any default or breach by Landlord under
this Lease or arising in connection herewith or with Landlord’s operation, management, leasing,
repair, renovation, alteration or any other matter relating to the Project or the Premises,
Tenant’s remedies shall be limited solely and exclusively to an amount which is equal to the lesser
of (a) the interest in the Buildings of the then current Landlord or (b) the equity interest
Landlord would have in the Buildings if the Buildings were encumbered by third party debt in an
amount equal to eighty percent (80%) of the value of the Buildings (as such value is determined by
Landlord), including any sales or insurance proceeds received by Landlord or the “Landlord Parties”
in connection with the Project, any Building or the Premises. For purposes of this Lease,
“Landlord Parties” means, collectively Landlord’s member(s) managers, partners,
beneficiaries, shareholders, officers, directors, trustees, employees, agents, investment advisors,
or any successor in interest of any of them. None of the Landlord Parties shall have any personal
liability hereunder, and Tenant hereby expressly waives and releases such personal liability on
behalf of itself and all persons claiming by, through or under Tenant. The limitations of
liability contained in this Paragraph 39 shall inure to the benefit of Landlord’s and the Landlord
Parties’ present and future member, manager, partners, beneficiaries, officers, directors,
trustees, shareholders, agents and employees, and their respective partners, heirs, successors and
assigns. Under no circumstances shall any present or future partner of Landlord (if Landlord is a
partnership), future member or manager in Landlord (if Landlord is a limited liability company) or
trustee or beneficiary (if Landlord or any partner or member of Landlord is a trust), have any
liability for the performance of Landlord’s obligations under this Lease. Notwithstanding any
contrary provision herein, neither Landlord nor the Landlord Parties shall be liable under any
circumstances for injury or damage to, or interference with Tenant’s business, including, but not
limited to, loss of profits, loss of rents or other revenues, loss of business opportunity, loss of
goodwill or loss of use, in each case, however occurring. The provisions of this Paragraph shall
apply only to the Landlord and the parties herein described, and shall not be for the benefit of
any insurer or any other third party.

     Notwithstanding anything to the contrary contained in this Lease, nothing in this Lease shall
impose any obligations on Tenant or Landlord to be responsible or liable for, and each hereby
waives and releases the other from all liability for consequential damages; provided, however, that
this waiver and release shall expressly exclude those consequential damages incurred by Landlord in
connection with (i) the holdover of the Premises by Tenant after the expiration or earlier
termination of this Lease, or (ii) the contamination of the Premises or any property

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resulting from the presence or use of Hazardous Materials caused or permitted by Tenant or
Tenant’s Agents.

     40. Financial Statements. Within ten (10) days after Landlord’s request, Tenant
shall deliver to Landlord the then current audited financial statements of Tenant (including
interim periods following the end of the last fiscal year for which annual statements are
available), prepared or compiled by a certified public accountant, including a balance sheet and
profit and loss statement for the most recent prior year, all prepared in accordance with generally
accepted accounting principles consistently applied. For so long as Tenant is a Publicly Company,
Tenant’s obligations under this Paragraph 40 may be satisfied by the financial information that is
disclosed in the publicly available 10K and 10Q reports.

     41. Rules and Regulations. Tenant shall comply with such reasonable rules and
regulations as Landlord may adopt from time to time for the orderly and proper operation of the
Building and the Project. Such rules may include but shall not be limited to the following: (a)
restriction of employee parking to a limited, designated area or areas; and (b) regulation of the
removal, storage and disposal of Tenant’s refuse and other rubbish. The then current rules and
regulations shall be binding upon Tenant upon delivery of a copy of them to Tenant. Landlord shall
not be responsible to Tenant for the failure of any other person to observe and abide by any of
said rules and regulations. Landlord’s current rules and regulations are attached to this Lease as
Exhibit D. Notwithstanding anything to the contrary contained in this Paragraph, if
any future modification, amendment or supplement to the Rules or Regulations are in conflict with
any term, covenant or condition of this Lease, then this Lease shall prevail. In the event any
other tenant or other occupant of the Project fails to comply with the Rules and Regulations, and
such non-compliance unreasonably interferes with Tenant’s use of the Premises, then Landlord shall
use commercially reasonable efforts, following a written request from Tenant, to enforce such Rules
and Regulations against other tenants of the Building; provided, however, that Landlord shall not
be responsible to Tenant for the failure of any other person to observe and abide by any of said
Rules and Regulations. The Rules and Regulations shall be uniformly applied without
discrimination; provided, however, that nothing contained herein shall prevent Landlord from
waiving any of the Rules and Regulations for individual tenants in the exercise of its good faith
business judgment, any such waiver shall not waive the applicability or enforceability of such rule
or regulation as to any other tenant.

     42. Mortgagee Protection.

          (a) Modifications for Lender. If, in connection with obtaining financing for the Project or
any portion thereof, Landlord’s lender shall request reasonable modifications to this Lease, Tenant
shall not unreasonably withhold, delay or defer its consent to such modifications, provided that
such modifications do not adversely affect Tenant’s rights or increase Tenant’s obligations under
this Lease.

          (b) Rights to Cure. Tenant shall give to any trust deed or mortgage holder
(“Holder”), by the method provided for in Paragraph 33 above, at the same time as it is
given to Landlord, a copy of any notice of default given to Landlord, provided that, prior to such
notice, Tenant has been notified, in writing (by way of notice of assignment of rents and leases,
or otherwise) of the address of such Holder. Tenant further agrees that if Landlord shall have
failed

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to cure such default within the time provided for in this Lease, then the Holder shall have an
additional twenty (20) days after expiration of such period, or after receipt of such notice from
Tenant (if such notice to the Holder is required by this Paragraph 42(b)), whichever shall last
occur within which to cure such default or if such default cannot be cured within that time, then
such additional time as may be necessary if within such twenty (20) days, any Holder has commenced
and is diligently pursuing the remedies necessary to cure such default (including, but not limited
to, commencement of foreclosure proceedings, if necessary to effect such cure) and actually
completes such cure within sixty (60) days after receipt of such written notice, in which event
this Lease shall not be terminated.

     43. Parking.

          (a) Provided that Tenant shall not then be in Default under the terms and conditions of the
Lease; and provided, further, that Tenant shall comply with and abide by Landlord’s reasonable
parking rules and regulations from time to time in effect, Tenant shall have a license to use for
the parking of its employees’ and Visitors’ standard size passenger automobiles, pick-up trucks,
vans and SUVs the number of non exclusive parking spaces set forth in the Basic Lease Information
in the Parking Areas; provided, however, that the number of parking spaces allocated to Tenant
hereunder shall be reduced on a proportionate basis in the event any of the parking spaces in the
Parking Areas are taken or otherwise eliminated as a result of any Condemnation (as hereinafter
defined) or casualty event affecting such Parking Areas. All spaces will be on a first-come,
first-served basis in common with other tenants of and visitors to the Project in parking spaces
provided by Landlord from time to time in the Project’s Parking Areas. Landlord shall designate
the number of Designated Visitor Parking Spaces as set forth in the Basic Lease Information as
Visitor parking for the Building in the front area of the Building, but otherwise in an area
reasonably selected by Landlord. Tenant’s license to use the parking spaces provided for herein
shall be subject to such reasonable terms, conditions, rules and regulations as Landlord or the
operator of the Parking Area may impose from time to time, except Tenant shall not be required to
pay any parking charge.

          (b) Each vehicle shall, at Landlord’s option to be exercised from time to time, bear a
permanently affixed and visible identification sticker to be provided by Landlord. Tenant shall
not and shall not permit its Agents and Visitors to park any vehicles in locations other than those
specifically designated by Landlord for Tenant’s use. The license granted hereunder is for
self-service parking only and does not include additional rights or services. Neither Landlord nor
its Agents shall be liable for: (i) loss or damage to any vehicle or other personal property
parked or located upon or within such parking spaces or any Parking Areas whether pursuant to this
license or otherwise and whether caused by fire, theft, explosion, strikes, riots or any other
cause whatsoever; or (ii) injury to or death of any person in, about or around such parking spaces
or any Parking Areas or any vehicles parking therein or in proximity thereto whether caused by
fire, theft, assault, explosion, riot or any other cause whatsoever and Tenant hereby waives any
claim for or in respect to the above and against all claims or liabilities arising out of loss or
damage to property or injury to or death of persons, or both, relating to any of the foregoing,
except to the extent caused by Landlord’s gross negligence or willful misconduct. Tenant shall not
assign any of its rights hereunder and in the event an attempted assignment is made, it shall be
void.

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          (c) Visitors, clients and/or customers (collectively, “Visitors”) to the Project
and the Premises shall park automobiles or other vehicles only in areas designated by Landlord from
time to time as being for the use of such Visitors and Tenant hereby agrees to ask its Visitors to
park only in the areas designated by Landlord from time to time for the use of Tenant’s Visitors.

     If any tax, surcharge or fee is at any time imposed by any governmental authority upon or with
respect to parking or vehicles parking in the parking spaces referred to herein, Tenant shall pay
such tax, surcharge or fee as Additional Rent, such payments to be made in advance and from time to
time as required by Landlord (except that they shall be paid monthly with Base Rent payments if
permitted by the governmental authority).

     In addition to any other rights or remedies available to Landlord, if Tenant parks trucks or
trailers in violation of this Paragraph 43, and fails to remove same within one (1) business day
after notice from Landlord, Landlord shall have the right to charge Tenant a parking charge equal
to $100.00 per day per truck or trailer. Landlord’s election to charge such a fee shall not be
deemed to be a consent by Landlord to such parking, and Tenant shall remain obligated to remove
such trucks and trailers in accordance with Landlord’s notice.

     44. Entire Agreement. This Lease, including the Exhibits and any Addenda attached
hereto, which are hereby incorporated herein by this reference, contains the entire agreement of
the parties hereto, and no representations, inducements, promises or agreements, oral or otherwise,
between the parties, not embodied herein or therein, shall be of any force and effect. If there is
more than one Tenant, the obligations hereunder imposed shall be joint and several.

     45. Interest. Any installment of Rent and any other sum due from Tenant under this
Lease which is not received by Landlord within ten (10) days from when the same is due shall bear
interest from the date such payment was originally due under this Lease until paid at the lesser of
(a) an annual rate equal to the maximum rate of interest permitted by law, or (b) an annual rate
equal to twelve percent (12%) per annum. Payment of such interest shall not excuse or cure any
Default by Tenant. In addition, Tenant shall pay all costs and attorneys’ fees incurred by
Landlord in collection of such amounts.

     46. Construction. This Lease shall be construed and interpreted in accordance with
the laws of the State where the Project is located. No rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall be employed in the interpretation
of this Lease, including the Exhibits attached hereto. All captions in this Lease are for
reference only and shall not be used in the interpretation of this Lease. Whenever required by the
context of this Lease, the singular shall include the plural, the masculine shall include the
feminine, and vice versa. If any provision of this Lease shall be determined to be illegal or
unenforceable, such determination shall not affect any other provision of this Lease and all such
other provisions shall remain in full force and effect.

     47. Representations and Warranties of Tenant. Tenant (and, if Tenant is a
corporation, partnership, limited liability company or other legal entity, such corporation,
partnership, limited liability company or entity) hereby makes the following representations and
warranties, each of which is material and being relied upon by Landlord, is true in all respects as
of the date of this Lease, and shall survive the expiration or termination of the Lease. Tenant

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shall re-certify such representations to Landlord periodically, upon Landlord’s reasonable
request.

          (a) If Tenant is an entity, Tenant is duly organized, validly existing and in good standing
under the laws of the state of its organization and the persons executing this Lease on behalf of
Tenant have the full right and authority to execute this Lease on behalf of Tenant and to bind
Tenant without the consent or approval of any other person or entity. Tenant has full power,
capacity, authority and legal right to execute and deliver this Lease and to perform all of its
obligations hereunder. This Lease is a legal, valid and binding obligation of Tenant, enforceable
in accordance with its terms.

          (b) Tenant has not (i) made a general assignment for the benefit of creditors, (ii) filed any
voluntary petition in bankruptcy or suffered the filing of an involuntary petition by any
creditors, (iii) suffered the appointment of a receiver to take possession of all or substantially
all of its assets, (iv) suffered the attachment or other judicial seizure of all or substantially
all of its assets, (v) admitted in writing its inability to pay its debts as they come due, or (vi)
made an offer of settlement, extension or composition to its creditors generally.

          (c) (i) Tenant is not in violation of any Anti-Terrorism Law;

               (ii) To the best of its knowledge neither Tenant or any holder of any direct or indirect
equitable, legal or beneficial interest in Tenant is, as of the date hereof:

               (A) conducting any business or engaging in any transaction or dealing with any Prohibited
Person, or any “forbidden entity” (as defined in Illinois Public Act 094-0079), including the
governments of Cuba, Iran, North Korea, Myanmar, Sudan, Syria and Venezuela and, including the
making or receiving of any contribution of funds, goods or services to or for the benefit of
any Prohibited Person or forbidden entity;

               (B) dealing in, or otherwise engaging in any transaction relating to, any property or
interests in property blocked pursuant to Executive Order No. 13224; or

               (C) engaging in or conspiring to engage in any transaction that evades or avoids, or has
the purpose of evading or avoiding, or attempts to violate any of the prohibitions set forth
in, any Anti-Terrorism Law; and

               (iii) Neither Tenant nor any of its affiliates, officers, directors, shareholders, members or
lease guarantor, as applicable, is a Prohibited Person.

     If at any time any of these representations becomes false, then it shall be considered a
material default under this Lease.

     As used herein, “Anti-Terrorism Law” is defined as any law relating to terrorism,
anti-terrorism, money-laundering or anti-money laundering activities, including, without
limitation, the United States Bank Secrecy Act, the United States Money Laundering Control Act of
1986, Executive Order No. 13224, Title 3 of the USA Patriot Act, Illinois Public Act 094-0079, and
any regulations promulgated under any of them. As used herein, “Executive Order No.
13224” is defined as Executive Order No. 13224 on Terrorist Financing effective September 24,
2001, and

51

 

relating to “Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten
to Commit, or Support Terrorism,” as may be amended from time to time. “Prohibited
Person” is defined as (i) a person or entity that is listed in the Annex to Executive Order
No. 13224, or a person or entity owned or controlled by an entity that is listed in the Annex to
Executive Order No. 13224; (ii) a person or entity with whom Landlord is prohibited from dealing or
otherwise engaging in any transaction by any Anti-Terrorism Law; or (iii) a person or entity that
is named as a “specially designated national and blocked person” 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/t11sdn.pdf or at any replacement website or other official publication of
such list. “USA Patriot Act” is defined as the “Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001” (Public Law
107-56), as may be amended from time to time.

     48. Name of Building. If Landlord chooses to change the name or address of the
Building and/or the Project, such change shall not affect in any way Tenant’s obligations under
this Lease, and, except for the name or address change, all terms and conditions of this Lease
shall remain in full force and effect; provided that Landlord must obtain Tenant’s prior written
consent before changing the name of the Building. Such name or address change shall not require a
formal amendment to this Lease, but shall be effective upon Tenant’s receipt of written
notification from Landlord of said change and Tenant providing written notice approving any such
name change for the Building.

     49. Renewal Option (with FMV Rent).

          (a) Exercise of Options. Provided Tenant is not in Default (beyond applicable notice and
grace periods) pursuant to any of the terms and conditions of this Lease, at the date of both the
Extension Notice and the effective date of the Option, Tenant shall have the option (the
“Option”) to renew this Lease for an additional five (5) year period (the
“Extension Term”) for the period commencing on the date following the Expiration Date
upon the terms and conditions contained in this Paragraph 49. To exercise the Option, Tenant shall
give Landlord notice (the “Extension Notice”) of intent to exercise said Option not
more than twelve (12) nor less than nine (9) months prior to the date on which the Extension Term
which is the subject of the notice will commence. The notice shall be given as provided in
Paragraph 33 hereof. In the event Tenant exercises the Option, this Lease will terminate in its
entirety at the end of the Extension Term and Tenant will have no further option to renew or extend
the Term of this Lease.

          (b) Procedures for Determining Prevailing Market Rate.

               (i) If Tenant timely exercises the Extension Option, not later than [six (6)] months prior to
the commencement of the Extension Term, Landlord shall deliver to Tenant a good faith written
proposal of the Prevailing Market Rate for the Premises for the Extension Term. Within thirty (30)
days after receipt of Landlord’s proposal, Tenant shall notify Landlord in writing that (A) Tenant
accepts Landlord’s proposal or (B) Tenant rejects Landlord’s proposal. If Tenant does not give
Landlord a timely notice in response to Landlord’s proposal, Landlord’s proposal of Prevailing
Market Rate for the Extension Term shall be deemed rejected by Tenant.

52

 

               (ii) If Tenant timely rejects Landlord’s proposal, Landlord and Tenant shall first negotiate
in good faith in an attempt to agree upon the Prevailing Market Rate for the Extension Term. If
Landlord and Tenant are able to agree within thirty (30) days following the earlier of (A)
Landlord’s receipt of Tenant’s notice rejecting Landlord’s proposal or (B) the expiration of the
thirty (30) day period referred to in subparagraph (a) above (the “Negotiation
Period”), such agreement shall constitute a determination of Prevailing Market Rate for
purposes of this Article. If Landlord and Tenant are unable to agree upon the Prevailing Market
Rate during the Negotiation Period, then within thirty (30) days after expiration of the
Negotiation Period, the parties shall meet and concurrently deliver to each other their respective
written estimates of the Prevailing Market Rate for the Extension Term, supported by the reasons
therefore (respectively, “Landlord’s Determination” and “Tenant’s
Determination”). Landlord’s Determination may be more or less than its initial proposal of
Prevailing Market Rate. If either party fails to deliver its Determination in a timely manner,
then the Prevailing Market Rate shall be the amount specified by the other party. If the higher of
such Determinations is not more than one hundred five percent (105%) of the lower of such
Determinations, then the Prevailing Market Rate shall be the average of the two Determinations. If
the Prevailing Market Rate is not resolved by exchange of the Determinations, the Prevailing Market
Rate shall be determined as follows, each party being bound to its Determination and such
Determinations constituting the only two choices available to the Appraisal Panel (as hereinafter
defined).

               (iii) Within thirty (30) days after the parties exchange Landlord’s and Tenant’s
Determinations, the parties shall each appoint a neutral and impartial appraiser who shall be
certified as an MAI or ASA appraiser and shall have at least ten (10) years’ experience,
immediately prior to his or her appointment, as a real estate appraiser of office properties in the
City and County where the Project is located. 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, if 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, if there is no successor
organization, the organization and designation most similar). If either Landlord or Tenant fails
to appoint an appraiser within said thirty (30) day period, the Prevailing Market Rate for the
Extension Term shall be the Determination of the other party who timely appointed an appraiser.

     Landlord’s and Tenant’s appraisers shall work together in good faith to appoint a neutral or
impartial third party appraiser within fifteen (15) days, and notify both Landlord and Tenant of
such selection. The three appraisers shall then work together in good faith to decide which of the
two Determinations more closely reflects the Prevailing Market Rate of the Premises for the
Extension Term. The Determination selected by such appraisers shall be binding upon Landlord and
Tenant. If all three appraisers cannot agree upon which of the two Determinations more closely
reflects the Prevailing Market Rate within forty-five (45) days, the decision of a majority of the
appraisers shall prevail.

               (iv) Within five (5) days following notification of the identity of the third appraiser,
Landlord and Tenant shall submit copies of Landlord’s Determination and Tenant’s Determination to
the third appraiser. The three appraisers are referred to herein as the “Appraisal

53

 

Panel.” The Appraisal Panel, if it so elects, may conduct a hearing, at which Landlord
and Tenant may each make supplemental oral and/or written presentations, with an opportunity for
rebuttal by the other party and for questioning by the members of the Appraisal Panel. Within
forty-five (45) days following the appointment of the third appraiser, the Appraisal Panel, by
majority vote, shall select either Landlord’s Determination or Tenant’s Determination as the
Prevailing Market Rate of the Premises for the Extension Term, and shall have no right to propose a
middle ground or to modify either of the two proposals or the provisions of this Lease. The
decision of the Appraisal Panel shall be final and binding upon the parties, and may be enforced in
accordance with the provisions of California law. In the event of the failure, refusal or
inability of any member of the Appraisal Panel to act, a successor shall be appointed in the manner
that applied to the selection of the member being replaced.

               (v) Each party shall pay the fees and expenses of the appraiser appointed by such party, and
one-half of the fees and expenses of the third appraiser and the expenses incident to the
proceedings of the Appraisal Panel (excluding attorneys’ fees and similar expenses of the parties
which shall be borne separately by each of the parties).

          (c) Prevailing Market Rate. As used in this Lease, the phrase “Prevailing Market
Rate” means the amount that a landlord under no compulsion to lease the Premises, and a tenant
under no compulsion to lease the Premises, would agree upon at arm’s length as Base Rent for the
Premises for the Extension Term, as of the commencement of the Extension Term. The Prevailing
Market Rate shall be based upon non-sublease, non-encumbered, non-equity lease transactions
recently entered into for space in the Building and in Comparable Buildings (“Comparison
Leases”) and may include periodic increases. Rental rates payable under Comparison Leases
shall be adjusted to account for variations between this Lease and the Comparison Leases with
respect to: (i) the length of the Extension Term compared to the lease term of the Comparison
Leases; (ii) rental structure, including additional rent, and taking into consideration any “base
year” or “expense stops”; (iii) the size of the Premises compared to the size of the premises under
the Comparison Leases; (iv) utility, location, number of docks and efficiencies of the Premises
compared to the premises under the Comparison Leases; (v) the age and quality of construction of
the Building; (vi) the value of existing leasehold improvements to Tenant; and (vii) the financial
condition and credit history of Tenant compared to the tenants under the Comparison Leases. In
determining the Prevailing Market Rate, no consideration shall be given to (i) any rental abatement
period granted to tenants in Comparison Leases in connection with the design and construction of
tenant improvements, (ii) whether Landlord or the landlords under Comparison Leases are paying real
estate brokerage commissions in connection with Tenant’s exercise of the Extension Option or in
connection with the Comparison Leases, and (iii) moving allowances paid. For purposes of this
Article, (“Comparable Buildings”) shall mean comparable class two story office/R&D
buildings in the Sunnyvale market area.

          (d) This option is personal to the original Tenant under the Lease or any Affiliate that has
been assigned Tenant’s rights under this Lease.

     50. Security.

          (a) While Landlord may in its sole and absolute discretion, engage security personnel to
patrol the Building or the Project, Landlord is not providing any security services with respect

54

 

to the Premises, and Landlord shall not be liable to Tenant for, and Tenant waives any claim
against Landlord with respect to, any bodily injury, loss by theft or any other damage suffered or
incurred by Tenant or Tenant’s employees or Visitors in connection with any unauthorized entry into
the Premises or any other breach of security with respect to the Premises, the Building or the
Project.

          (b) Tenant hereby agrees to the exercise by Landlord and Landlord’s Agents, within their sole
discretion, of such security measures as, but not limited to, the evacuation of the Premises, the
Building or the Project for cause, suspected cause or for drill purposes, the denial of access to
the Premises, the Building or the Project and other related actions that it deems necessary to
prevent any threat of property damage or bodily injury. The exercise of such security measures by
Landlord and Landlord’s Agents, and the resulting interruption of service and cessation of Tenant’s
business, if any, shall not be deemed an eviction or disturbance of Tenant’s use and possession of
the Premises, or any part thereof, or render Landlord or Landlord’s Agents liable to Tenant for any
resulting damages or relieve Tenant from Tenant’s obligations under this Lease.

     51. Judicial Reference.

          (a) This Lease shall be construed and enforced in accordance with the laws of the State of
California. Landlord and Tenant agree that, other than an action by Landlord to obtain possession
of the Premises or any action which seeks relief which can only be obtained by court proceeding,
any action or proceeding by either of them against the other arising out of or in connection with
this Lease, Tenant’s use or occupancy of the Premises, or any claim of injury or damage occurring
in or about the Building or the Premises shall, upon the motion of either party, be submitted to
general judicial reference pursuant to California Code of Civil Procedure Sections 638 et seq. or
any successor statutes thereto. The parties shall cooperate in good faith to ensure that all
necessary and appropriate parties are included in the judicial reference proceeding. The general
referee shall have the authority to try all issues, whether of fact or law, and to report a
statement of decision to the court. Landlord and Tenant shall use the procedures adopted by
Judicial Arbitration and Mediation Services/Endispute (“JAMS”) for judicial reference
(or any other entity offering judicial reference dispute resolution procedures as may be mutually
acceptable to the parties), provided that the following rules and procedures shall apply in all
cases unless the parties agree otherwise:

               (i) The proceedings shall be heard in the County where the Project is located;

               (ii) The referee must be a retired judge or a licensed attorney with substantial experience in
relevant real estate matters;

               (iii) Any dispute regarding the selection of the referee shall be resolved by JAMS or the
entity providing the reference services, or, if no entity is involved, by the court with
appropriate jurisdiction;

               (iv) The referee may require one or more pre-hearing conferences;

               (v) The parties shall be entitled to discovery, and the referee shall oversee discovery and
may enforce all discovery orders in the same manner as any trial court judge;

55

 

               (vi) A stenographic record of the trial shall be made, provided that the record shall remain
confidential except as may be necessary for post-hearing motions and any appeals;

               (vii) The referee’s statement of decision shall contain findings of fact and conclusions of
law to the extent applicable; and

               (viii) The referee shall have the authority to rule on all post-hearing motions in the same
manner as a trial judge.

     The statement of decision of the referee upon all of the issues considered by the referee
shall be binding upon the parties, and upon filing of the statement of decision with the clerk of
the court, or with the judge where there is no clerk, judgment may be entered thereon. The
decision of the referee shall be appealable as if rendered by the court. This provision shall in
no way be construed to limit any valid cause of action which may be brought by any of the parties.

     If Landlord commences any summary proceedings or action for non-payment of rent, Tenant
shall not interpose any counterclaim of any nature or description (unless such counterclaim shall
be mandatory) in any such proceeding or action, and any such counterclaim shall be relegated to an
independent action at law. In addition, in any action, proceeding or counterclaim arising in
connection with this Lease, Landlord and Tenant hereby (i) subject to the foregoing
provisions of this Paragraph 51, waive any objection to venue in the county in which the Project is
located, and consent to personal jurisdiction of the courts of the State of California, and
(ii) consent to service of process by any means authorized by California law. The
provisions of this Paragraph 51 shall survive the expiration of the lease term or earlier
termination of this Lease.

          (b) Landlord and Tenant hereby waive any rights they may have in the selection of venue with
respect to any action or proceeding (i) brought by Landlord, Tenant, or any other party, relating
to (A) this Lease and/or any understandings or prior dealings between the parties hereto, or (B)
the Premises, the Building or the Project or any part thereof, or (ii) to which Landlord is a
party. Landlord and Tenant hereby stipulate and agree that the venue of any such suit shall be in
Santa Clara County.

     52. Recordation. Neither this Lease, nor any memorandum, affidavit or other writing
with respect thereto, shall be recorded by Tenant or by any one acting through, under or on behalf
of Tenant, and the recording thereof in violation of this provision shall make this Lease null and
void at Landlord’s election.

     53. Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts, labor
disputes, acts of God, inability to obtain services, labor, or materials or reasonable substitutes
therefor, governmental actions, civil commotions, fire or other casualty, and other causes beyond
the reasonable control of the party obligated to perform, except with respect to the obligations
imposed with regard to Rent and other charges to be paid by Tenant or Landlord pursuant to this
Lease (collectively, the “Force Majeure”), notwithstanding anything to the contrary
contained in this Lease, shall excuse the performance of such party for a period equal to any such
prevention,

56

 

delay or stoppage and therefore, if this Lease specifies a time period for performance of an
obligation of either party, that time period shall be extended by the period of any delay in such
party’s performance cause by a Force Majeure.

     54. Acceptance. This Lease shall only become effective and binding upon full
execution hereof by Landlord and delivery of a signed copy to Tenant and Landlord’s receipt of any
Security Deposit.

     55. Furniture.

          (a) During the Term of this Lease, Tenant shall have the right, at no cost to Tenant, to use
the furniture that was previously located within the Premises and as identified on Exhibit
H hereto (collectively, the “Furniture”), subject to the terms and conditions
contained in this Paragraph 55. Landlord shall cause the Furniture to be installed within the
Premises, but Landlord shall have no obligation for any wiring or cabling to the Furniture, all of
which shall be performed by Tenant in accordance with the terms of this Lease.

          (b) Tenant shall: (i) at its sole expense, repair and maintain each item of Furniture in the
same condition as when received, ordinary wear and tear excepted, and in compliance with all
applicable Laws and all instructions and recommendations as to the repair and maintenance of such
item of Furniture issued at any time by the vendor and/or manufacturer thereof; (ii) maintain
conspicuously on any of Furniture such labels, plates, decals or other markings as Landlord may
reasonably place thereon, stating that Landlord is the owner of the same; (iii) furnish to Landlord
such information concerning the condition, location, use and operation of the Furniture as Landlord
reasonably may reasonable request; (iv) make no additions, alterations, modifications or
improvements to any item of Furniture without Landlord’s prior written consent, which shall not be
unreasonably withheld; (v) not, directly or indirectly, create, incur or permit to exist any lien,
encumbrance, mortgage, pledge, attachment or security interest on or with respect to the Furniture
; and (vi) use the Furniture solely in the conduct of Tenant’s business and keep the Furniture
within the Premises.

          (c) TENANT ACKNOWLEDGES THAT LANDLORD IS NOT THE MANUFACTURER OR SUPPLIER OF THE FURNITURE,
NOR THE AGENT THEREOF, AND THAT LANDLORD MAKES NO EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES
AS TO ANY MATTER WHATSOEVER IN CONNECTION WITH THE FURNITURE, INCLUDING WITHOUT LIMITATION, THE
MERCHANTABILITY OF THE FURNITURE, ITS FITNESS FOR A PARTICULAR PURPOSE, ITS DESIGN OR CONDITION,
ITS CAPACITY OR DURABILITY, OR THE QUALITY OF THE MATERIAL OR WORKMANSHIP IN THE MANUFACTURE OR
ASSEMBLY OF THE FURNITURE. Landlord is not responsible for any repairs or service to Furniture ,
defects therein or failures in the operation thereof. Landlord shall have no liability in
connection with or arising out of the furnishing, performance or use of the Furniture or, in any
event, any special, indirect, incidental or consequential damages of any character, including,
without limitation, loss of use of production facilities or equipment, loss of profits, property
damage or lost production, whether suffered by Tenant or any third party.

57

 

     56. Miscellaneous. The words “include,” “includes,” and “including” shall be deemed
to be followed by the phrase “without limitation.” The phrase “business days” means Monday through
Friday, excluding holidays. If there shall be more than one person or entity comprising Tenant,
the act of or notice from, or notice or refund to, or the signature of, any one or more of them, in
connection with any matter arising under this Lease, including, but not limited to, any renewal,
extension, expiration, termination or modification of this Lease, shall be binding upon each and
all of the persons and entities comprising Tenant with the same force and effect as if each and all
of them had so acted or so given or received such notice or refund or so signed.

     In Witness Whereof, Landlord and Tenant have executed and delivered this Lease as of
the Lease Date specified in the Basic Lease Information.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Landlord:	 	Kifer Tech Investors llc,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	TPI Equity REIT Operating Partnership LP,

its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	TPI Equity REIT Operating Partnership GP llc,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:	 	/s/ THOMAS ENGER	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	Thomas Enger	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Title:	 	Executive Director	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	Tenant:	 	Trident Microsystems, Inc.,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ PETE J. MANGAN 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Pete J. Mangan 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	CFO	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ DAVID L. TEICHMANN	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	David L. Teichmann	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	Executive Vice President, General

Counsel and Corporate Secretary 

Trident Microsystems, Inc.	 	 
	 

	 	 	 	 	 	 	 	 

58

 

Exhibit A

Diagram of the Premises

A-1

 

Exhibit B

Tenant Work Letter

     This Exhibit is attached to and made a part of the Lease Agreement (the “Lease”)
by and between Kifer Tech Investors llc, a Delaware limited liability company
(“Landlord”) and Trident Microsystems, Inc., a Delaware corporation
(“Tenant”) for certain premises located at 1170 Kifer Road, Sunnyvale, California (the
“Premises”).

     This Tenant Work Letter shall set forth the terms and conditions relating to the construction
of improvements to the Premises. This Tenant Work Letter is essentially organized chronologically
and addresses the issues of the construction within the Premises, in sequence, as such issues will
arise during such construction. All references in this Tenant Work Letter to Paragraphs of “this
Lease” shall mean the relevant portions of the Lease, and all references in this Tenant Work Letter
to Sections of “this Tenant Work Letter” shall mean the relevant portions of Sections 1 through 5
of this Tenant Work Letter.

1. Delivery of the Premises.

     1.1 Delivery. Subject to Paragraph 8(b) of the Lease, Landlord shall deliver the Premises
promptly following the full execution and unconditional delivery of this Lease.

     1.2 Condition. Subject to Paragraph 10(b) of the Lease, Landlord shall deliver the Premises
in their currently existing, “as-is” condition.

2. Tenant Improvements

     2.1 Tenant Improvement Allowance. Tenant shall be entitled to a one-time tenant improvement
allowance (the “Tenant Improvement Allowance”) in the amount of seven dollars ($7.00)
for each rentable square foot of the Premises for the costs relating to the initial design
(including consultant and project management fees), permitting and construction of Tenant’s
improvements which are affixed to the Premises (collectively, the “Tenant
Improvements”) and for the “Tenant Improvement Allowance Items,” as that term is defined in
Section 2.2(a) below. In no event shall Landlord be obligated to make disbursements pursuant to
this Tenant Work Letter in a total amount which exceeds the Tenant Improvement Allowance. Tenant
shall have no claim for any Tenant Improvement Allowance, and Landlord shall have no obligation to
reimburse Tenant for any Tenant Improvement costs, that have not been requested by January 31,
2011, but such unused Tenant Improvement Allowance shall be available for a credit in accordance
with Paragraph 2.2(d) of this Tenant Work Letter.

B-0-1

 

     2.2 Disbursement of the Tenant Improvement Allowance.

          (a) Tenant Improvement Allowance Items. Except as otherwise set forth in this Tenant
Work Letter, the Tenant Improvement Allowance shall be disbursed by Landlord only for the following
items and costs (collectively the “Tenant Improvement Allowance Items”) and, except as
otherwise specifically and expressly provided in this Tenant Work Letter, Landlord shall not deduct
any other expenses from the Tenant Improvement Allowance. The Tenant Improvement Allowance Items
shall consist of:

               (i) Payment of the fees and costs of the “Architect” and the “Engineers,” as those terms are
defined in Section 3.1 of this Tenant Work Letter, costs paid to Tenant’s consultants in connection
with the design, construction and move into the Premises and all related design and construction
costs, including the fees and costs of Tenant’s project management consultants;

               (ii) The payment of plan check, permit and license fees relating to construction of the Tenant
Improvements;

               (iii) The cost of construction of the Tenant Improvements, including, without limitation,
testing and inspection costs, and trash removal costs, after hours utility usage, and contractors’
fees and general conditions;

               (iv) The cost of any changes in the base Building when such changes are required by the
Construction Drawings (including if such changes are due to the fact that such work is prepared on
an unoccupied basis) or to comply with Laws, such cost to include all direct architectural and/or
engineering fees and expenses incurred in connection therewith;

               (v) The cost of any changes to the Construction Drawings or Tenant Improvements required by
all applicable building codes; and

               (vi) any applicable sales and use taxes; and

               (vii) the cost of furniture and fixtures installed in the Premises, not to exceed two dollars
($2.00) for each rentable square foot of the Premises.

          (b) Disbursement of Tenant Improvement Allowance. During the construction of the
Tenant Improvements, Landlord shall make monthly disbursements of the Tenant Improvement Allowance
for the benefit of Tenant and shall authorize the release of monies for the benefit of Tenant as
follows.

               (i) Monthly Disbursements. Once each month on a day designated by Landlord or if no
date is designated by Landlord, then on the first Tuesday of each month (in either event, a
“Submittal Date”) during the period from the date hereof through the construction of
the Tenant Improvements, Tenant shall deliver to Landlord: (A) a request for payment of the
“Contractor,” as that term is defined in Section 4.1 of this Tenant Work Letter, and/or to the
“Architect” and/or to the “Engineers,” as such terms are defined in Section 3.1 below, and/or to
Tenant’s various consultants or other persons or entities entitled to payment (or reimbursement to
Tenant if Tenant has already paid the Contractor or other person or entity entitled to payment),
approved by

B-0-2

 

Tenant, in a form to be provided by Landlord, showing the schedule, by trade, of percentage of
completion of the Tenant Improvements in the Premises, detailing the portion of the work completed;
(B) invoices from all of Tenant’s Agents (hereinafter defined) for labor rendered and materials
delivered to the Premises for the applicable payment period; (C) executed conditional mechanics’
lien releases from all of Tenant’s Agents which shall substantially comply with the appropriate
provisions of California Civil Code Section 3262(d) or unconditional releases if appropriate;
provided, however, that with respect to fees and expenses of the Architect, Engineers, or
construction or project managers or other similar consultants, and/or any other pre-construction
items for which the payment scheme set forth in items (A) through (C) above of this Tenant Work
Letter, is not applicable (collectively, the “Non-Construction Allowance Items”),
Tenant shall only be required to deliver to Landlord on or before the applicable Submittal Date,
reasonable evidence of incurring the cost for the applicable Non-Construction Allowance Items
(unless Landlord has received a preliminary notice in connection with such costs in which event
conditional lien releases must be submitted in connection with such costs); and (D) all other
information reasonably requested in good faith by Landlord. Tenant’s request for payment shall be
deemed Tenant’s acceptance and approval of the work furnished and/or the materials supplied as set
forth in Tenant’s payment request vis-à-vis Landlord. Within thirty (30) days following the
Submittal Date, and assuming Landlord receives all of the information described in items (A)
through (D) above, Landlord shall deliver a check to Tenant made jointly payable to Contractor and
Tenant or if Tenant elects, to the Contractor, subcontractor, architect, engineer or consultant
designated by Tenant and/or a separate check to Tenant where Tenant has provided evidence
reasonably satisfactory to Landlord that Tenant has paid such Contractor (or other supplier of
services or goods) accompanied when appropriate by unconditional lien releases, or any other
provider of goods and services designated by Tenant to Landlord, and Tenant in payment of the
lesser of: (1) the amounts so requested by Tenant, as set forth above in this Section 2.2(b)(i),
less a ten percent (10%) retention (the aggregate amount of such retentions to be known as the
“Final Retention”); provided, however, that no such retention shall be duplicative of
the retention Tenant would otherwise withhold (but will not withhold) pursuant to its agreement
with such Contractor and no such deduction shall be applicable to amounts due to Tenant’s
consultants, the Architect, or the Engineer or for Non-Construction Allowance Items or other Tenant
Improvement Allowance Items in connection with the payment of suppliers for materials delivered to
the Premises and subcontractors for completing performance of their work substantially in advance
of the completion of the Tenant Improvements pursuant to the Approved Construction Drawings, and
(2) the balance of any remaining available portion of the Tenant Improvement Allowance (not
including the Final Retention). In the event that Landlord or Tenant identifies any material
non-compliance with the Approved Construction Drawings, or substandard work, Landlord or Tenant as
appropriate shall be provided a detailed statement identifying such material non-compliance or
substandard work by the party claiming the same, and Tenant shall cause such work to be corrected
so that such work is no longer substandard. Such procedure shall also be applicable in connection
with the payment of the Final Retention. Landlord’s payment of such amounts shall not be deemed
Landlord’s approval or acceptance of the work furnished or materials supplied as set forth in
Tenant’s payment request. If Tenant receives a check payable to anyone other than solely to
Tenant, Tenant may return such check to Landlord and receive a replacement check made payable only
to Tenant within ten (10) business days, if Tenant provides the releases and evidence to the extent
required above to receive a check payable solely to Tenant.

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               (ii) Final Retention. A check for the Final Retention payable jointly to Tenant and
Contractor (or payable solely to Tenant if Contractor is no longer owed any money by Tenant for
work performed in the Premises) shall be delivered by Landlord to Tenant following the completion
of construction of the Premises, provided that (A) Tenant delivers to Landlord properly executed
mechanics lien releases in compliance with both California Civil Code Section 3262(d)(2) and either
Section 3262(d)(3) or Section 3262(d)(4), (B) Architect delivers to Landlord a certificate, in a
form reasonably acceptable to Landlord, certifying that the construction of the Tenant Improvements
in the Premises has been substantially completed in accordance with the terms of this Tenant Work
Letter, and (C) Tenant fulfills its obligations pursuant to Section 4.3 of this Tenant Work Letter.

               (iii) Other Terms. Landlord shall only be obligated to make disbursements from the
Tenant Improvement Allowance to the extent costs are incurred by Tenant for Tenant Improvement
Allowance Items or are otherwise expressly permitted hereunder.

          (c) Standard Tenant Improvement Package. The quality of Tenant Improvements shall be
equal to, or of greater quality than, those commonly found in first class office and R&D buildings
in the greater San Francisco Bay Area (the “Specifications”).

          (d) Unused Allowance. Upon the completion of the Tenant Improvements, Tenant shall
have the right, exercisable by written notice to Landlord following the twelfth (12th) month of the
commencement of the Term, to elect to use the unused amount of the Tenant Improvement Allowance to
offset Base Rent and other sums next becoming due under this Lease, not to exceed two dollars
($2.00) for each rentable square foot of the Premises and such credit for the unused Tenant
Improvement Allowance shall be spread equally over the thirteenth (13th) through sixteenth (16th)
months following the commencement of the Term (a credit of 1/4 of the unused Tenant Improvement
Allowance shall be available for a credit each of these months).

3. Construction Drawings

     3.1 Selection of Architect/Construction Drawings. Tenant shall retain an architect/space
planner approved by Landlord, which approval shall not be unreasonably withheld or delayed (the
“Architect”) to prepare the “Construction Drawings,” as that term is defined in this
Section 3. Tenant shall retain the engineering consultants approved by Landlord (the
“Engineers”), which approval shall not be unreasonably withheld or delayed, to prepare
all plans and engineering working drawings relating to the structural, mechanical, electrical,
plumbing, HVAC, lifesafety, and sprinkler work in the Premises as part of the Tenant Improvements.
The plans and drawings to be prepared by Architect and the Engineers hereunder shall be known
collectively as the “Construction Drawings.” All Construction Drawings shall comply at
a minimum with Landlord’s Specifications and shall be in a drawing format reasonably acceptable to
Landlord. Landlord’s review of the Construction Drawings as set forth in this Section 3, shall be
for its sole purpose and shall not imply Landlord’s review of the same, or obligate Landlord to
review the same, for quality, design, code compliance or other like matters. Accordingly,
notwithstanding that any Construction Drawings are reviewed by Landlord or its space planner,
architect, engineers and consultants, and notwithstanding any advice or assistance which may be
rendered to Tenant by Landlord or Landlord’s space planner, architect, engineers, and consultants,
Landlord shall have no liability whatsoever in connection therewith, except to the

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extent that Landlord has specifically requested a modification to the Construction Drawings as a condition
to Landlord’s approval of the Construction Drawings, and shall not be responsible for any omissions
or errors contained in the Construction Drawings, and Tenant’s waiver and indemnity set forth in
this Lease shall specifically apply to the Construction Drawings. Each time Landlord is granted
the right to review, consent or approve the Construction Drawings or any component thereof
(collectively, “Consent”), such Consent shall not be unreasonably withheld, conditioned
or delayed.

     3.2 Final Space Plan. Tenant and the Architect shall prepare the final space plan for the
Tenant Improvements (the “Final Space Plan”), and shall deliver the Final Space Plan to
Landlord for Landlord’s approval. The Final Space Plan shall show all corridors, internal and
external offices and partitions, and exiting. Landlord shall, within five (5) business days after
Landlord’s receipt of the Final Space Plan (i) approve the Final Space Plan, (ii) approve the Final
Space Plan subject to specified conditions to be complied with when the Final Working Drawings are
submitted by Tenant to Landlord, or (iii) reasonably disapprove the Final Space Plan. If Landlord
disapproves the Final Space Plan, Tenant may resubmit the Final Space Plan to Landlord at any time,
and Landlord shall approve or disapprove of the resubmitted Final Space Plan, based upon the
criteria set forth in this Section 3.2, within five (5) business days after Landlord receives such
resubmitted Final Space Plan. Such procedures shall be repeated until the Final Space Plan is
approved. The Final Space Plan may be provided by Tenant to Landlord in one or more stages and at
one or more times and the time periods set forth herein shall apply to each portion submitted.

     3.3 Completion of Construction Drawings. Once Landlord has approved the Final Space Plan,
Tenant, the Architect and the Engineers shall complete the Construction Drawings for the Premises
in a form which is sufficient to obtain applicable permits and shall submit such Construction
Drawings to Landlord for Landlord’s approval. Landlord shall, within ten (10) business days after
Landlord’s receipt of the Construction Drawings, either (i) approve the Construction Drawings,
which approval shall not be unreasonably withheld if the same are logical evolutions of the Final
Space Plan and do not deviate in any material respect therefrom, (ii) approve the Construction
Drawings subject to specified conditions which must be stated in a reasonably clear and complete
manner to be satisfied by Tenant prior to submitting the Approved Construction Drawings for permits
as set forth in Section 3.4 below of this Tenant Work Letter, or (iii) disapprove and return the
Construction Drawings to Tenant with requested revisions. If Landlord disapproves the Construction
Drawings, Tenant may resubmit the Construction Drawings to Landlord at any time, and Landlord shall
approve or disapprove the resubmitted Construction Drawings, based upon the criteria set forth in
this Section 3.3, within five (5) business days after Landlord receives such resubmitted
Construction Drawings. Such procedure shall be repeated until the Construction Drawings are
approved.

     3.4 Approved Construction Drawings. The Construction Drawings for the Tenant Improvements
shall be approved by Landlord (the “Approved Construction Drawings”) prior to the
commencement of construction of the Tenant Improvements. Tenant shall, at its sole cost and
expense, cause to be obtained all applicable building permits required in connection with the
construction of the Tenant Improvements (“Permits”). Tenant hereby agrees that neither
Landlord nor Landlord’s consultants shall be responsible for obtaining any Permits or certificate
of occupancy for the Premises and that obtaining the same shall be Tenant’s responsibility;

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provided, however, that Landlord shall cooperate at no cost to Landlord with Tenant in
performing ministerial acts reasonably necessary to enable Tenant to obtain any such Permits or
certificate of occupancy. No changes, modifications or alterations in the Approved Construction
Drawings may be made without the prior written consent of Landlord pursuant to the terms of Section
3.5 below.

     3.5 Change Orders. In the event Tenant desires to change the Approved Construction Drawings,
Tenant shall deliver notice (the “Drawing Change Notice”) of the same to Landlord,
setting forth in detail the changes (the “Tenant Change”) Tenant desires to make to the
Approved Construction Drawings. Landlord shall, within four (4) business days of receipt of a
Drawing Change Notice, either (i) approve the Tenant Change, which approval shall not be
unreasonably withheld if the same is consistent with the Final Space Plan or (ii) disapprove the
Tenant Change and deliver a notice to Tenant specifying in reasonably sufficient detail the reasons
for Landlord’s disapproval. Any additional costs which arise in connection with such Tenant Change
shall be paid by Tenant.

4. Construction of the Tenant Improvements

     4.1 Tenant’s Selection of Contractors.

          (a) The Contractor. Tenant shall retain a licensed general contractor (the
“Contractor”) pre-approved by Landlord, which approval shall not be unreasonably
withheld or delayed, prior to Tenant causing the Contractor to construct the Tenant Improvements.

          (b) Tenant’s Agents. All major trade subcontractors and suppliers used by Tenant
(such major trade subcontractors and material suppliers along with all other laborers, materialmen,
and suppliers, and the Contractor to be known collectively as “Tenant’s Agents”) must
be approved in writing by Landlord, which approval shall not be unreasonably withheld, conditioned
or delayed, provided that, subject to the terms hereof, Tenant shall cause Landlord’s designated
structural, mechanical and life safety subcontractors to be retained in connection with the Tenant
Improvements. If Landlord does not approve any of Tenant’s proposed subcontractors, laborers,
materialmen or suppliers, Tenant shall submit other proposed subcontractors, laborers, materialmen
or suppliers for Landlord’s written approval. The Contractor and the Contractor’s subcontractors
(collectively, “Tenant’s Contractors”) and their respective workers shall conduct their
activities in and around the Premises, the Building and the Project in a harmonious relationship
with all other subcontractors, laborers, materialmen and supplies at the Premises, the Building and
the Project.

     4.2 Construction of Tenant Improvements by Tenant’s Agents.

          (a) Construction Contract. Prior to Tenant’s execution of the construction contract
and general conditions with Contractor (the “Contract”), Tenant shall submit the
Contract to Landlord for its approval, which approval shall not be unreasonably withheld or
delayed. Prior to the commencement of the construction of the Tenant Improvements, and after
Tenant has accepted all bids for the Tenant Improvements, Tenant shall provide Landlord with a
detailed breakdown, by trade, of the final costs to be incurred or which have been incurred in
connection

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with the design and construction of the Tenant Improvements to be performed by or at the
direction of Tenant or the Contractor.

          (b) Tenant’s Agents.

               (i) Landlord’s General Conditions for Tenant’s Agents and Tenant Improvement Work.
Tenant’s and Tenant’s Agent’s construction of the Tenant Improvements shall comply with the
following: (A) the Tenant Improvements shall be constructed in conformance with the Approved
Construction Drawings; (B) Tenant’s Contractors shall submit schedules of all work relating to the
Tenant Improvements to Landlord and Landlord shall, within five (5) business days of receipt
thereof, inform Tenant and Tenant’s Contractors of any changes which are reasonably necessary
thereto in order to avoid interference with Landlord’s work or unreasonable disruption of existing
tenants and Tenant’s Contractors shall adhere to such corrected schedule; and (C) Tenant shall
abide by all construction guidelines and reasonable rules made by Landlord’s Project manager with
respect to any matter, within reason, in connection with this Tenant Work Letter, including,
without limitation, the construction of the Tenant Improvements.

               (ii) Indemnity. Tenant’s indemnity of Landlord as set forth, qualified and
conditioned in this Lease shall also apply with respect to any and all costs, losses, damages,
injuries and liabilities related in any way to any act or omission of Tenant or Tenant’s Agents, or
anyone directly or indirectly employed by any of them, or in connection with Tenant’s non-payment
of any amount arising out of the Tenant Improvements and/or Tenant’s disapproval of all or any
portion of any request for payment. The waivers of subrogation set forth in this Lease pertaining
to property damage shall be fully applicable to damage to property arising as a result of any work
performed pursuant to the terms of this Tenant Work Letter.

               (iii) Requirements of Tenant’s Agents. Tenant’s Contractor shall guarantee to Tenant
and for the benefit of Landlord that the portion of the Tenant Improvements for which it is
responsible shall be free from any defects in workmanship and materials for a period of not less
than one (1) year from the date of completion thereof. Tenant’s Contractor shall be responsible
for the replacement or repair, without additional charge, of all work done or furnished in
accordance with its contract that shall become defective within one (1) year after final
completion. All such warranties or guarantees as to materials or workmanship of or with respect to
the Tenant Improvements shall be contained in the Contract or subcontract and shall be written such
that such guarantees or warranties shall inure to the benefit of both Landlord and Tenant, as their
respective interests may appear, and can be directly enforced by either. Tenant covenants to give
to Landlord any assignment or other assurances which may be necessary to effect such right of
direct enforcement.

               (iv) Insurance Requirements.

               (A) General Coverages. All of Tenant’s Agents shall carry worker’s compensation
insurance covering all of their respective employees, and shall also carry public liability
insurance, including property damage, all with limits, in form and with companies as are
required to be carried by Tenant as set forth in this Lease (provided that the limits of
liability to be carried by Tenant’s Agents and Contractor, shall be in an amount

B-0-7

 

which is customary for such respective Tenant’s Agents employed by tenants constructing
improvements in the Comparable Buildings), and the policies therefor shall insure Landlord and
Tenant, as their interests may appear, as well as the Contractor and subcontractors.

               (B) Special Coverages. Contractor shall carry “Builder’s All Risk” insurance, in
an amount approved by Landlord but not more than the amount of the Contract, covering the
construction of the Tenant Improvements, and such other insurance as Landlord may reasonably
require, it being understood and agreed that the Tenant Improvements shall be insured by
Tenant pursuant to this Lease immediately upon completion thereof. Such insurance shall be in
amounts and shall include such extended coverage endorsements as may be reasonably required by
Landlord (to the extent they are generally required by landlords of Comparable Buildings) and
shall be in a form and with companies as are required to be carried by Tenant pursuant to the
terms of this Lease.

               (C) General Terms. Certificates for all insurance carried pursuant to this
Section 4.2(b)(iv) shall be delivered to Landlord before the commencement of construction of
the Tenant Improvements and before the Contractor’s equipment is moved onto the Project. All
such policies of insurance must contain a provision that the company writing said policy will
give Landlord thirty (30) days’ prior notice of any cancellation or lapse of the effective
date or any reduction in the amounts of such insurance. In the event that the Tenant
Improvements are damaged by any cause during the course of the construction thereof and this
Lease is not terminated, Tenant shall immediately repair the same at Tenant’s sole cost and
expense. Tenant’s Agents shall maintain all of the foregoing insurance coverage in force
until the completion of the Tenant Improvements. All such insurance relating to property,
except Workers’ Compensation, maintained by Tenant’s Agents shall preclude subrogation claims
by the insurer against anyone insured thereunder. Such insurance shall provide that it is
primary insurance as respects the owner and that any other insurance maintained by Landlord is
excess and noncontributing with the insurance required hereunder. The requirements for the
foregoing insurance shall not derogate from the provisions for indemnification of Landlord by
Tenant under Section 4.2(b)(ii) of this Tenant Work Letter and Tenant’s right with respect to
the waiver of subrogation.

          (c) Governmental Compliance. The Tenant Improvements shall comply in all respects
with the following: (i) all Laws; (ii) applicable standards of the American Insurance Association
(formerly, the National Board of Fire Underwriters) and the National Electrical Code; and (iii)
building material manufacturer’s specifications.

          (d) Inspection by Landlord. Landlord shall have the right to inspect the Tenant
Improvements at all reasonable times; provided, however, that Landlord’s failure to inspect the
Tenant Improvements shall in no event constitute a waiver of any of Landlord’s rights hereunder nor
shall Landlord’s inspection of the Tenant Improvements constitute Landlord’s approval of the same.
In the event that Landlord should disapprove any portion of the Tenant Improvements during an
inspection, Landlord shall notify Tenant in writing within a reasonable time of such inspection of
such disapproval and shall specify in reasonably sufficient detail the items disapproved. Any
defects or deviations in, and/or disapprovals in accordance herewith by Landlord of, the Tenant
Improvements shall be rectified by Tenant at Tenant’s expense and at no expense to Landlord;
provided, however, that in the event Landlord determines that a defect or

B-0-8

 

deviation exists or reasonably disapproves of any matter in connection with any portion of the
Tenant Improvements, Landlord may, following notice to Tenant and a reasonable period of time for
Tenant to cure, take such action as Landlord deems necessary to correct the same, at Tenant’s
expense, and at no additional expense to Landlord, and without incurring any liability on
Landlord’s part.

          (e) Meetings. Commencing upon the execution of this Lease, Tenant shall hold periodic
meetings at a reasonable time, with the Architect and the Contractor regarding the progress of the
preparation of Construction Drawings and the construction of the Tenant Improvements, which
meetings shall be held at a location reasonably designated by Landlord, and Landlord and/or its
agents shall receive prior notice of, and shall have the right to attend, all such meetings, and,
upon Landlord’s request, certain of Tenant’s Agents shall attend such meetings. In addition,
minutes shall be taken at all such meetings, a copy of which minutes shall be promptly delivered to
Landlord. One such meeting each month shall include the review of Contractor’s current request for
payment.

     4.3 Notice of Completion; Copy of Record Set of Plans. Within ten (10) days after completion
of construction of the Tenant Improvements, Tenant shall prepare a Notice of Completion, which
Landlord shall execute if factually correct, and Tenant shall cause such Notice of Completion to be
recorded in the appropriate office of the county recorder in accordance with Section 3093 of the
Civil Code of the State of California or any successor statute, and shall furnish a copy thereof to
Landlord upon such recordation. If Tenant fails to do so, Landlord may execute and file the same
on behalf of Tenant as Tenant’s agent for such purpose, at Tenant’s sole cost and expense. At the
conclusion of construction, (i) Tenant shall cause the Architect and Contractor (A) to update the
Approved Construction Drawings as necessary to reflect all changes made to the Approved
Construction Drawings during the course of construction, (B) to certify to the best of their
knowledge that the updated drawings are true and correct, which certification shall survive the
expiration or termination of this Lease, and (C) to deliver to Landlord two (2) CD-ROMs of such
updated Approved Construction Drawings, in CAD format, within thirty (30) days following issuance
of a certificate of occupancy for the Premises, and (ii) Tenant shall deliver to Landlord a copy of
all warranties, guaranties, and operating manuals and information relating to the improvements,
equipment, and systems in the Premises.

5. Miscellaneous

     5.1 Tenant’s Representative. Tenant has designated [please provide] as its sole
representative with respect to the matters set forth in this Tenant Work Letter, who shall have
full authority and responsibility to act on behalf of the Tenant as required in this Tenant Work
Letter.

     5.2 Landlord’s Representative. Landlord has designated [to be provided] as its sole
representative with respect to the matters set forth in this Tenant Work Letter, who, until further
notice to Tenant, shall have full authority and responsibility to act on behalf of the Landlord as
required in this Tenant Work Letter.

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     5.3 Time of the Essence in This Tenant Work Letter. Unless otherwise indicated, all
references herein to a “number of days” shall mean and refer to calendar days. If any item
requiring approval is timely disapproved by Landlord, the procedure for preparation of the document
and approval thereof shall be repeated until the document is approved by Landlord.

     5.4 Tenant’s Lease Default. Notwithstanding any terms to the contrary contained in this
Lease, if Tenant is in Default of this Lease (including, without limitation, this Tenant Work
Letter) at any time on or before the completion of the Tenant Improvements, then (i) in addition to
all other rights and remedies granted to Landlord pursuant to the Lease, Landlord shall have the
right to withhold payment of all or any portion of the Tenant Improvement Allowance and/or Landlord
may cause Contractor to cease the construction of the Tenant Improvements (in which case, Tenant
shall be responsible for any delay in the completion of the Tenant Improvements caused by such work
stoppage), and (ii) all other obligations of Landlord under the terms of this Tenant Work Letter
shall be suspended until such time as such default is cured pursuant to the terms of the Lease (in
which case, Tenant shall be responsible for any delay in the completion of the Tenant Improvements
caused by such inaction by Landlord). Notwithstanding the forgoing, if a default by Tenant is
cured, forgiven or waived, Landlord’s suspended obligations shall be fully reinstated and resumed,
effective immediately.

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Exhibit C

Commencement and Expiration Date Memorandum

	 	 	 
	Landlord:

	 	Kifer Tech Investors llc
	 
	Tenant:

	 	Trident Microsystems, Inc.
	 
	Lease Date:

	 	March 5, 2010
	 
	Premises:

	 	Located at                                         

     Tenant hereby accepts the Premises as being in the condition required under the Lease, but
subject to Landlord’s obligations under Paragraph 10(b) of the Lease.

     The
Commencement Date of the Lease is hereby established as                     , 20___ and the
Expiration Date is                     , 20___.

	 	 	 	 	 	 	 
	Tenant:	 	Trident Microsystems, Inc.,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Approved and Agreed:

Landlord:

Kifer Tech Investors llc,

a Delaware limited liability company

	 	 	 	 	 	 	 	 	 
	By:	 	TPI Equity REIT Operating Partnership LP,	 	 
	 	 	its sole member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TPI Equity REIT Operating Partnership GP llc,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

C-1

 

Exhibit D

Rules and Regulations

     This exhibit, entitled “Rules and Regulations,” is and shall constitute Exhibit D
to the Lease Agreement, dated as of the Lease Date, by and between landlord and Tenant for the
Premises. The terms and conditions of this Exhibit D are hereby incorporated into and
are made a part of the Lease. Capitalized terms used, but not otherwise defined, in this
Exhibit D have the meanings ascribed to such terms in the Lease.

     1. Tenant shall not use any method of heating or air conditioning other than that supplied by
Landlord without the consent of Landlord.

     2. All window coverings installed by Tenant and visible from the outside of the building
require the prior written approval of Landlord.

     3. Tenant shall not use, keep or permit to be used or kept any foul or noxious gas or
substance or any flammable or combustible materials on or around the Premises, except to the extent
that Tenant is permitted to use the same under the terms of Paragraph 32 of the Lease.

     4. Tenant shall not alter any lock or install any new locks or bolts on any door at the
Premises without the prior consent of Landlord.

     5. Tenant shall park motor vehicles in parking areas designated by Landlord except for loading
and unloading. During those periods of loading and unloading, Tenant shall not unreasonably
interfere with traffic flow around the Building or the Project and loading and unloading areas of
other tenants. Tenant shall not park motor vehicles in designated parking areas after the
conclusion of normal daily business activity.

     6. Tenant shall not disturb, solicit or canvas any tenant or other occupant of the Building or
the Project and shall cooperate to prevent same.

     7. No person shall go on the roof without Landlord’s permission.

     8. Business machines and mechanical equipment belonging to Tenant which cause noise or
vibration that may be transmitted to the structure of the Building, to such a degree as to be
objectionable to Landlord or other tenants, shall be placed and maintained by Tenant, at Tenant’s
expense, on vibration eliminators or in noise-dampening housing or other devices sufficient to
eliminate noise or vibration.

     9. All goods, including material used to store goods, delivered to the Premises of Tenant
shall be immediately moved into the Premises and shall not be left in parking or receiving areas
overnight.

     10. Tractor trailers which must be unhooked or parked with dolly wheels beyond the concrete
loading areas must use steel plates or wood blocks under the dolly wheels to prevent damage to the
asphalt paving surfaces. No parking or storing of such trailers will be permitted in the auto
parking areas of the Project or on streets adjacent thereto.

D-1

 

     11. Forklifts which operate on asphalt paving areas shall not have solid rubber tires and
shall only use tires that do not damage the asphalt.

     12. Tenant is responsible for the storage and removal of all trash and refuse. All such trash
and refuse shall be contained in suitable receptacles stored behind screened enclosures at
locations approved by Landlord.

     13. Tenant shall not store or permit the storage or placement of goods or merchandise in or
around the common areas surrounding the Premises. No displays or sales of merchandise shall be
allowed in the parking lots or other common areas.

     14. Tenant shall not permit any animals, including, but not limited to, any household pets
(but excluding service animals, which are permitted), to be brought or kept in or about the
Premises, the Building, the Project or any of the common areas.

     15. Smoking is permitted only in designated areas.

     16. Tenant shall cooperate with Landlord’s efforts to obtain LEED certification for the
Property, including complying with Landlord’s then-current energy saving efforts and participating
in any recycling program.

     17. Tenant shall report maintenance problems involving water and moist conditions to the
Property Manager promptly and conduct its business in a manner to prevent unusual moisture
conditions or mold growth.

     18. Tenant shall not block or inhibit the flow of return or make up air into the HVAC system
and shall maintain the Premises at a consistent temperature and humidity level in accordance with
the Property Manager’s instructions.

     19. Tenant shall regularly conduct cleaning and janitorial activities, especially in
bathrooms, kitchens and janitorial spaces, to remove mildew and prevent moist conditions.

     20. Tenant shall maintain water in all drain taps at all times.

D-2

 

Exhibit E

Form of Estoppel Certificate

                                             , a                      (“Tenant”) hereby certifies to
                     and its successors and assigns that Tenant leases from
                    , a                      (“Landlord”) approximately ___
square feet of space (the “Premises”) in                      pursuant to that certain Lease
Agreement dated                     , 20___by and between Landlord and Tenant, as amended by
                                         (collectively, the “Lease”), a true and correct copy of which
is attached hereto as Exhibit A. Tenant hereby certifies to                                         , that
as of the date hereof:

     1. The Lease is in full force and effect and has not been modified, supplemented or amended,
except as set forth in the introductory paragraph hereof.

     2. Tenant is in actual occupancy of the Premises under the Lease and Tenant has accepted the
same. Landlord has performed all obligations under the Lease to be performed by Landlord,
including, without limitation, completion of all tenant work required under the Lease and the
making of any required payments or contributions therefor. Tenant is not entitled to any further
payment or credit for tenant work.

     3. The
initial term of the lease commenced                     , 20___ and shall expire                     ,
20___. Tenant has the following rights to renew or extend the Term or to expand the Premises:
                                        .

     4. Tenant has not paid any rentals or other payments more than one (1) month in advance except
as follows:                                         .

     5. Base Rent payable under the Lease is                      Dollars ($                    ). Base Rent and
additional Rent have been paid through                     , 20___. There currently exists no claims,
defenses, rights of set-off or abatement to or against the obligations of Tenant to pay Base Rent
or Additional Rent or relating to any other term, covenant or condition under the Lease.

     6. There are no concessions, bonuses, free months’ rent, rebates or other matters affecting
the rentals except as follows:                                         .

     7. No security or other deposit has been paid with respect to the Lease except as follows:
                                        .

     8. To Tenant’s actual knowledge, Landlord is not currently in default under the Lease and
there are no events or conditions existing which, with or without notice or the lapse of time, or
both, could constitute a default of Landlord under the Lease or entitle Tenant to offsets or
defenses against the prompt payment of rent except as follows:

                                        . To
Tenant’s actual knowledge, Tenant is not in default under any of the terms and conditions of the
lease nor is there now any fact or condition which, with notice or lapse of time or both, will
become such a default.

E-1

 

     9. Tenant has not assigned, transferred, mortgaged or otherwise encumbered its interest under
the lease, nor subleased any of the Premises nor permitted any person or entity to use the Premises
except as follows:                                         .

     10. Tenant has no rights of first refusal or options to purchase the property of which the
Premises is a part.

     11. The Lease represents the entire agreement between the parties with respect to Tenant’s
right to use and occupy the Premises.

     Tenant acknowledges that the parties to whom this certificate is addressed will be relying
upon the accuracy of this certificate in connection with their acquisition and/or financing of the
Premises.

     In
Witness Whereof, Tenant has caused this certificate to be executed this ___ day
of                     , 20___.

	 	 	 	 	 	 	 	 	 
	 

	 	Tenant:	 	 	 	 	 ‚ 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	a
	 	 

	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

E-2

 

Exhibit F

Form of Subordination, Non-Disturbance and Attornment Agreement

     This Agreement is dated the            day of                     , 20     , and is made between
                                        , a                                  
        having a place of business and mailing address of
              
             
           
   (“Mortgagee”), and      
           
           
             , a
              
             
           
   having a place of business and mailing address of    
             
            
            
(“Tenant”).

Recitals:

	I.	 	Tenant has entered into a certain lease (the “Lease”) dated                     , 20     ,
with                                         , as lessor (“Landlord”) covering certain premises known
as                                         , being part of a premises commonly known as
             
            
               , and
located in                                          (the “Premises”).

	II.	 	Mortgagee has agreed to make a mortgage loan in the amount of                                          Dollars
($                    ) (together with all amendments, modifications, supplements, renewals, extensions,
spreaders and consolidations thereto, the “Mortgage”) to Landlord, secured by the
Premises, and the parties desire to set forth their agreement herein.

     Now, Therefore, in consideration of the Premises, and of the sum of One Dollar
($1.00) by each party in hand paid to the other, the receipt of which is hereby acknowledged, the
parties hereby agree as follows:

     A. Said Lease is and shall be subject and subordinate to the Mortgage insofar as it affects
the real property of which the Premises form a part to the full extent of the amounts secured
thereby and interest thereon.

     B. Tenant agrees that it will attorn to and recognize any purchaser at a foreclosure sale
under the Mortgage, any transferee who acquires the Premises by deed in lieu of foreclosure, and
the successors and assigns of such purchaser(s) (a “Successor Landlord”), as its landlord for the
unexpired balance (and any extensions, if exercised) of the term of said Lease upon the same terms
and conditions set forth in said Lease.

     C. If it becomes necessary to foreclose the Mortgage, Mortgagee will not terminate said Lease
nor join Tenant in summary or foreclosure proceedings (unless such joinder shall be required to
protect Mortgagee’s interest under the Mortgage and in which case Mortgagee shall not seek
affirmative relief from Tenant in such action or proceeding) so long as Tenant is not in default
beyond any applicable cure periods under any of the terms, covenants, or condition of said Lease.

F-1

 

     D. In the event of a foreclosure sale under the Mortgage or deed in lieu thereof, the
Successor Landlord will be bound to Tenant under all the terms of the Lease and Tenant will, from
and after such event, have the same remedies against Successor Landlord for the breach of any
covenant contained in the Lease that Tenant might have had under the Lease against Landlord;
provided, however, that Successor Landlord will not be:

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

          2. liable for the return of any security deposit, except to the extent the Successor Landlord
received any portion of the security deposit made by Tenant; or

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

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

          5. bound by any amendment, modification, extensions or renewal of the Lease made without
Lender’s consent; or

          6. bound by any representation or warranty made by any prior landlord (including Landlord).

     E. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto
and their successors and assigns.

     F. Tenant agrees to give Mortgagee, by registered or certified mail, return receipt requested,
or by a recognized overnight courier, a copy of any notice of default served upon Landlord,
provided that prior to such notice Tenant has been notified in writing (by way of Notice of
Assignment of Rent and Leases, or otherwise) of the address of such Mortgagee. Tenant further
agrees that Tenant shall not terminate the Lease nor abate rents thereunder or claim an offset
against rents thereunder unless notice has been given to Mortgagee and Mortgagee has been given a
reasonable period of time (including a period of time to commence and complete a foreclosure
proceeding) to cure such default, except in the case of any abatement of rent for damage and
destruction as specifically permitted by the Lease.

     G. Tenant acknowledges that it has notice that Landlord’s interest under the Lease and the
rents thereunder have been collaterally assigned to Mortgagee as part of the security for the
obligations secured by the Mortgage. Notice from Mortgagee to Tenant directing payment of rent and
all other sums due under the Lease shall have the same effect under the Lease as a notice to Tenant
from Landlord and Tenant agrees to be bound by such notice. In the event of any conflict or
inconsistency between a notice from Landlord and a notice from Mortgagee, the notice from Mortgagee
shall control.

     H. This Agreement shall not be modified, amended or terminated except by a writing duly
executed by the party against whom the same is sought to be enforced.

F-2

 

     I. This Agreement shall be governed by and construed in accordance with the internal laws (as
opposed to the laws of conflicts) of the state in which the Premises are located.

     In Witness Whereof, the parties hereto have executed these presents as of the day and
year first above written..

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Mortgagee:	 	 	 	 
	 

Date

	 	 
	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Its:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Tenant:	 	 	 	 
	 

Date

	 	 
	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Its:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

F-3

 

Exhibit G

Hazardous Materials Disclosure Certificate

     Your cooperation in this matter is appreciated. Initially, the information provided by you in
this Hazardous Materials Disclosure Certificate is necessary for Landlord to evaluate your proposed
uses of the premises (the “Premises”) and to determine whether to enter into a lease
agreement with you as tenant. If a lease agreement is signed by you and Landlord (the
“Lease Agreement”), on an annual basis in accordance with the provisions of Paragraph
32 of the Lease Agreement, you are to provide an update to the information initially provided by
you in this certificate. Any questions regarding this certificate should be directed to, and when
completed, the certificate should be delivered to:

			
	     Landlord:	 	Kifer Tech Investors llc

c/o UBS Realty Investors llc

455 Market Street, Suite 1540

San Francisco, California 94105

Attention: Kifer Technology Center Manager

	 	 	Name of (Prospective) Tenant: 

	 
	 	 	Mailing Address: 

	 
	 	 	Contact Person, Title and Telephone Number(s): 

	 
	 	 	Contact Person for Hazardous Waste Materials Management and Manifests and Telephone Number(s): 

	 
	 	 	 

	 
	 	 	Address of (Prospective) Premises: 

	 
	 	 	Length of (Prospective) initial Term: 

	 
	 	 	 

	1.	 	GENERAL INFORMATION:

     Describe the proposed operations to take place in, on, or about the Premises,
including, without limitation, principal products processed, manufactured or assembled, and
services and activities to be provided or otherwise conducted. Existing tenants should
describe any proposed changes to on-going operations.

	 	 	 

	 
	 	 	 

G-1

 

	2.	 	USE, STORAGE AND DISPOSAL OF HAZARDOUS MATERIALS

	 	2.1	 	Will any Hazardous Materials (as hereinafter defined) be used, generated,
treated, stored or disposed of in, on or about the Premises? Existing tenants should
describe any Hazardous Materials which continue to be used, generated, treated, stored
or disposed of in, on or about the Premises.
	 
	 	 	 	Wastes                                          Yes o            No o
	 
	 	 	 	Chemical Products                       Yes o            No o
	 
	 	 	 	Other                                            Yes o            No o
	 
	 	 	 	If Yes is marked, please explain: 

	 
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	2.2	 	If Yes is marked in Section 2.1, attach a list of any Hazardous Materials to be
used, generated, treated, stored or disposed of in, on or about the Premises, including
the applicable hazard class and an estimate of the quantities of such Hazardous
Materials to be present on or about the Premises at any given time; estimated annual
throughput; the proposed location(s) and method of storage (excluding nominal amounts
of ordinary household cleaners and janitorial supplies which are not regulated by any
Environmental Laws, as hereinafter defined); and the proposed location(s) and method(s)
of treatment or disposal for each Hazardous Material, including the estimated
frequency, and the proposed contractors or subcontractors. Existing tenants should
attach a list setting forth the information requested above and such list should
include actual data from on-going operations and the identification of any variations
in such information from the prior year’s certificate.

	3.	 	STORAGE TANKS AND SUMPS

	 	3.1	 	Is any above or below ground storage or treatment of gasoline, diesel,
petroleum, or other Hazardous Materials in tanks or sumps proposed in, on or about the
Premises? Existing tenants should describe any such actual or proposed activities.
	 
	 	 	 	Yes o                     No o
	 
	 	 	 	If yes, please explain: 

	 
	 	 	 	 

	 
	 	 	 	 

G-2

 

	4.	 	WASTE MANAGEMENT

	 	4.1	 	Has your company been issued an EPA Hazardous Waste Generator I.D. Number?
Existing tenants should describe any additional identification numbers issued since the
previous certificate.
	 
	 	 	 	Yes o                     No o
	 
	 	4.2	 	Has your company filed a biennial or quarterly reports as a hazardous waste
generator? Existing tenants should describe any new reports filed.
	 
	 	 	 	Yes o                     No o
	 
	 	 	 	If yes, attach a copy of the most recent report filed.

	5.	 	WASTEWATER TREATMENT AND DISCHARGE

	 	5.1	 	Will your company discharge wastewater or other wastes to:
	 
	 	 	 	                     storm drain?                                         sewer?
	 
	 	 	 	                     surface water?                                      no wastewater or other wastes discharged.
	 
	 	 	 	Existing tenants should indicate any actual discharges. If so, describe the nature
of any proposed or actual discharge(s).
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	5.2	 	Will any such wastewater or waste be treated before discharge?
	 
	 	 	 	Yes o                     No o
	 
	 	 	 	If yes, describe the type of treatment proposed to be conducted. Existing tenants
should describe the actual treatment conducted.
	 
	 	 	 	 

	 
	 	 	 	 

G-3

 

 

	6.	 	AIR DISCHARGES

	 	6.1	 	Do you plan for any air filtration systems or stacks to be used in your
company’s operations in, on or about the Premises that will discharge into the air; and
will such air emissions be monitored? Existing tenants should indicate whether or not
there are any such air filtration systems or stacks in use in, on or about the Premises
which discharge into the air and whether such air emissions are being monitored.
	 
	 	 	 	Yes o                      No o
	 
	 	 	 	If yes, please describe:
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	6.2	 	Do you propose to operate any of the following types of equipment, or any other
equipment requiring an air emissions permit? Existing tenants should specify any such
equipment being operated in, on or about the Premises.

	 	 	 
	           Spray booth(s)

	 	           Incinerator(s)
	 
	 	 
	           Dip tank(s)

	 	           Other (Please describe)
	 
	 	 
	           Drying oven(s)

	 	           No Equipment Requiring Air Permits

	 	 	 	If yes, please describe:
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	6.3	 	Please describe (and submit copies of with this Hazardous Materials Disclosure
Certificate) any reports you have filed in the past [thirty-six] months with any
governmental or quasi-governmental agencies or authorities related to air discharges or
clean air requirements and any such reports which have been issued during such period
by any such agencies or authorities with respect to you or your business operations.

G-4

 

	7.	 	HAZARDOUS MATERIALS DISCLOSURES

	 	7.1	 	Has your company prepared or will it be required to prepare a Hazardous
Materials management plan (“Management Plan”) or Hazardous Materials
Business Plan and Inventory (“Business Plan”) pursuant to Fire Department
or other governmental or regulatory agencies’ requirements? Existing tenants should
indicate whether or not a Management Plan is required and has been prepared.
	 
	 	 	 	Yes o                      No o
	 
	 	 	 	If yes, attach a copy of the Management Plan or Business Plan. Existing tenants
should attach a copy of any required updates to the Management Plan or Business
Plan.
	 
	 	7.2	 	Are any of the Hazardous Materials, and in particular chemicals, proposed to be
used in your operations in, on or about the Premises listed or regulated under
Proposition 65? Existing tenants should indicate whether or not there are any new
Hazardous Materials being so used which are listed or regulated under Proposition 65.
	 
	 	 	 	Yes o                      No o
	 
	 	 	 	If yes, please explain:
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	8.	 	ENFORCEMENT ACTIONS AND COMPLAINTS

	 	8.1	 	With respect to Hazardous Materials or Environmental Laws, has your company
ever been subject to any agency enforcement actions, administrative orders, or consent
decrees or has your company received requests for information, notice or demand
letters, or any other inquiries regarding its operations? Existing tenants should
indicate whether or not any such actions, orders or decrees have been, or are in the
process of being, undertaken or if any such requests have been received.
	 
	 	 	 	Yes o                      No o
	 
	 	 	 	If yes, describe the actions, orders or decrees and any continuing compliance
obligations imposed as a result of these actions, orders or decrees and also
describe any requests, notices or demands, and attach a copy of all such documents.
Existing tenants should describe and attach a copy of any new actions, orders,
decrees, requests, notices or demands not already delivered to Landlord pursuant to
the provisions of Paragraph 32 of the Lease Agreement.
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

G-5

 

	 	8.2	 	Have there ever been, or are there now pending, any lawsuits against your
company regarding any environmental or health and safety concerns?
	 
	 	 	 	Yes o                      No o
	 
	 	 	 	If yes, describe any such lawsuits and attach copies of the complaint(s),
cross-complaint(s), pleadings and other documents related thereto as requested by
Landlord. Existing tenants should describe and attach a copy of any new
complaint(s), cross-complaint(s), pleadings and other related documents not already
delivered to Landlord pursuant to the provisions of Paragraph 32 of the Lease
Agreement.
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	8.3	 	Have there been any problems or complaints from adjacent tenants, owners or
other neighbors at your company’s current facility with regard to environmental or
health and safety concerns? Existing tenants should indicate whether or not there have
been any such problems or complaints from adjacent tenants, owners or other neighbors
at, about or near the Premises and the current status of any such problems or
complaints.
	 
	 	 	 	Yes o                      No o
	 
	 	 	 	If yes, please describe. Existing tenants should describe any such problems or
complaints not already disclosed to Landlord under the provisions of the signed
Lease Agreement and the current status of any such problems or complaints.
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	9.	 	PERMITS AND LICENSES

	 	9.1	 	Attach copies of all permits and licenses issued to your company with respect
to its proposed operations in, on or about the Premises, including, without limitation,
any Hazardous Materials permits, wastewater discharge permits, air emissions permits,
and use permits or approvals. Existing tenants should attach copies of any new permits
and licenses as well as any renewals of permits or licenses previously issued.

     As used herein, “Hazardous Materials” shall mean and include any substance that is
or contains (a) any “hazardous substance” as now or hereafter defined in § 101(14) of the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended
(“CERCLA”) (42 U.S.C. § 9601 et seq.) or any regulations promulgated under CERCLA;
(b) any “hazardous waste” as now or hereafter defined in the Resource Conservation and Recovery
Act, as amended (“RCRA”) (42 U.S.C. § 6901 et seq.) or any regulations promulgated
under RCRA;

G-6

 

(c) any substance now or hereafter regulated by the Toxic Substances Control Act, as amended
(“TSCA”) (15 U.S.C. § 2601 et seq.) or any regulations promulgated under TSCA;
(d) petroleum, petroleum by-products, gasoline, diesel fuel, or other petroleum hydrocarbons;
(e) asbestos and asbestos-containing material, in any form, whether friable or non-friable;
(f) polychlorinated biphenyls; (g) lead and lead-containing materials; or (h) any additional
substance, material or waste (i) the presence of which on or about the Premises (A) requires
reporting, investigation or remediation under any Environmental Laws (as hereinafter defined),
(B) causes or threatens to cause a nuisance on the Premises or any adjacent property or poses or
threatens to pose a hazard to the health or safety of persons on the Premises or any adjacent
property, or (C) which, if it emanated or migrated from the Premises, could constitute a trespass,
or (ii) which is now or is hereafter classified or considered to be hazardous or toxic under any
Environmental Laws; and “Environmental Laws” shall mean and include (a) CERCLA, RCRA
and TSCA; and (b) any other federal, state or local laws, ordinances, statutes, codes, rules,
regulations, orders or decrees now or hereinafter in effect relating to (i) pollution, (ii) the
protection or regulation of human health, natural resources or the environment, (iii) the
treatment, storage or disposal of Hazardous Materials, or (iv) the emission, discharge, release or
threatened release of Hazardous Materials into the environment.

     The undersigned hereby acknowledges and agrees that this Hazardous Materials Disclosure
Certificate is being delivered to Landlord in connection with the evaluation of a Lease Agreement
and, if such Lease Agreement is executed, will be attached thereto as an exhibit. The undersigned
further acknowledges and agrees that if such Lease Agreement is executed, this Hazardous Materials
Disclosure Certificate will be updated from time to time in accordance with Paragraph 32 of the
Lease Agreement. The undersigned further acknowledges and agrees that Landlord and its partners,
lenders and representatives may, and will, rely upon the statements, representations, warranties,
and certifications made herein and the truthfulness thereof in entering into the Lease Agreement
and the continuance thereof throughout the Term, and any renewals thereof, of the Lease Agreement.
I [print name]                     , acting with full authority to bind the (proposed) Tenant and on
behalf of the (proposed) Tenant, certify, represent and warrant that the information contained in
this certificate is true and correct.

	 	 	 	 	 
	(Prospective) Tenant:	 	 
	 
	 	 	 	 
	Trident Microsystems, Inc.,	 	 
	a Delaware corporation	 	 
	 
	 	 	 	 
	By:

	 	 
 

	 	 
	 
	Title:

	 	 
 

	 	 
	 
	Date:

	 	 
 

	 	 

G-7

 

Exhibit H

Furniture List

	•	 	121 Cubicles
	 
	•	 	60 Offices -Desk-Bookcase-Whiteboard
	 
	•	 	6 Conference Rooms
	 
	•	 	Cafeteria Tables
	 
	•	 	Food Warmers
	 
	•	 	Lobby Furniture
	 
	•	 	Task Chair — For cubicles and offices
	 
	•	 	Conference Chairs for all rooms
	 
	•	 	Stack Chairs for Lunch Room

H-1exv4w1

Exhibit 4.1

REGISTRATION RIGHTS AGREEMENT

     This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) dated as of November 9, 2009 entered
into by and between MagnaChip Semiconductor LLC, a Delaware limited liability company (or any other
Affiliate entity or entities created through any Solvent Reorganization or designated by the Board
of Managers, the “Company”), and each of the individuals and entities listed on Schedule I
attached hereto (the “Securityholders”).

     A. On August 25, 2009, the Creditor’s Committee of the Company and certain of its debtor
subsidiaries filed that certain Plan of Reorganization Pursuant to Chapter 11 of the Bankruptcy
Code (as may be amended, the “Plan”), which provides that the Securityholders shall receive units
of the Company’s membership interests (the “Common Units” or the “Initial Securities”).

     B. In connection with the consummation of the transactions contemplated by the Plan, the
Company and the Securityholders desire to enter into this Agreement to provide the Securityholders
registration rights with respect to the Registrable Securities (as defined herein) of the Company
held by them including, without limitation, the Initial Securities.

AGREEMENT:

     NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

ARTICLE I.

REGISTRATION RIGHTS

     Section 1.1 Definitions. For purposes of this Agreement:

     (a) “Affiliate” means, with respect to any Person, any other Person that directly or
indirectly, through one or more intermediaries, controls, is controlled by or is under common
control with such Person. The term “control” (including, with correlative meaning, the terms
“controlled by” and “under common control with”) means the possession, directly or indirectly, of
the power to direct, or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise.

     (b) “Demand Registration” means a registration requested pursuant to Section 1.3.

     (c) “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

     (d) “FINRA” means the Financial Industry Regulatory Authority, Inc.

     (e) “Holder” means a Person that (i) is a party to this Agreement (or a permitted transferee
under Section 1.11) and (ii) owns Registrable Securities.

 

 

     (f) “IPO” means an initial firm commitment underwritten public offering of the Company’s
securities.

     (g) “Participating Holders” means Holders participating, or electing to participate, in an
offering of Registrable Securities.

     (h) “Person” means any individual, firm, corporation, company, partnership, trust,
incorporated or unincorporated association, limited liability company, joint venture, joint stock
company, government (or an agency or political subdivision thereof) or other entity of any kind,
and shall include any successor (by merger or otherwise) of any such entity.

     (i) “Qualified Public Offering” means a firm commitment underwritten public offering of the
Company’s securities pursuant to an effective registration statement filed by the Company under the
Securities Act resulting in gross proceeds of at least $75,000,000 to the Company.

     (j) “Reclassified Securities” means the Securities received in connection with the exchange of
the Common Units into Securities of the Company or its Subsidiaries or distribution of Securities
of the Company or its Subsidiaries in respect of Common Units to effect a Solvent Reorganization in
connection with an IPO of the Company.

     (k) “Register,” “registered” and “registration” mean a registration effected by preparing and
filing a Registration Statement in compliance with the Securities Act, and the declaration or
ordering of effectiveness of such Registration Statement.

     (l) “Registrable Securities” means all Reclassified Securities held by the Securityholders
(including a permitted transferee under Section 1.11 hereof) whether acquired on or after
the effective date of the Plan, including, without limitation, (i) the Initial Securities, (ii) any
securities issued by the Company, which are convertible into Reclassified Securities, including the
Warrants, and (iii) any Reclassified Securities issued as a dividend or other distribution with
respect to or in exchange for or in replacement of the securities referenced in (i) or (ii) above;
provided, however, that Registrable Securities, once issued, shall cease to be Registrable
Securities (a) upon the sale thereof pursuant to an effective Registration Statement, (b) upon the
sale thereof pursuant to Rule 144 (or successor rule) under the Securities Act, (c) upon the sale
in a private transaction in which the transferor’s rights under this Agreement are not validly
assigned in accordance with the terms of this Agreement and (d) when such securities cease to be
outstanding.

     (m) “Registration Expenses” means all expenses (other than Selling Expenses) arising from or
incident to the performance of, or compliance with, this Agreement, including, without limitation,
(i) SEC, stock exchange, FINRA and other registration and filing fees, (ii) all fees and expenses
incurred in connection with complying with any securities or blue sky laws (including, without
limitation, fees, charges and disbursements of counsel in connection with blue sky qualifications
of the Registrable Securities), (iii) all printing, messenger and delivery expenses, (iv) the fees,
charges and disbursements of counsel to the Company and of its
independent public accountants and any other accounting and legal fees, charges and expenses
incurred by the Company (including, without limitation, any expenses arising from any special

2

 

audits or “comfort letters” required in connection with or incident to any registration), (v) the
fees, charges and disbursements of any special experts retained by the Company in connection with
any registration pursuant to the terms of this Agreement, (vi) all internal expenses of the Company
(including, without limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), (vii) the fees and expenses incurred in connection with the listing of
the Registrable Securities on any securities exchange and (viii) Securities Act liability insurance
if the Company elects to obtain such insurance, regardless of whether any Registration Statement
filed in connection with such registration is declared effective. “Registration Expenses” shall
also include fees, charges and disbursements of one (1) firm of counsel to all of the Participating
Holders participating in any underwritten public offering (which shall be selected by a majority,
based on the number of Registrable Securities to be sold, of the Participating Holders).

     (n) “Registration Statement” means any Registration Statement of the Company filed with the
SEC on the appropriate form pursuant to the Securities Act which covers any of the Registrable
Securities pursuant to the provisions of this Agreement and all amendments and supplements to any
such Registration Statement, including post-effective amendments, in each case including the
prospectus contained therein, all exhibits thereto and all materials incorporated by reference
therein.

     (o) “SEC” or “Commission” means the United States Securities and Exchange Commission.

     (p) “Securities” shall mean, with respect to any Person, all equity interests of such Person,
all securities convertible into or exchangeable for equity interests of such Person, and all
options, warrants, and other rights to purchase or otherwise acquire from such Person equity
interests, including any equity appreciation or similar rights, contractual or otherwise.

     (q) “Securities Act” means the United States Securities Act of 1933, as amended, or any
successor statute.

     (r) “Selling Expenses” means the underwriting fees, discounts, selling commissions and stock
transfer taxes applicable to all Registrable Securities registered by the Participating Holders and
fees and disbursements of counsel for any Participating Holder (other than the fees, charges and
disbursements of one (1) firm of counsel to all of the Participating Holders as included in
Registration Expenses).

     (s) “Solvent Reorganization” shall mean any solvent reorganization of the Company, including
by merger, consolidation, recapitalization, transfer or sale of shares or assets, or contribution
of assets and/or liabilities, or any liquidation, exchange of Securities, conversion of entity,
migration of entity, formation of new entity, or any other transaction or group of related
transactions (in each case other than to or with an unaffiliated third party), in which:

          (i) all holders of the same class of Securities of the Company are offered the same amount of
consideration in respect of such Securities; and

          (ii) all holders’ economic interests in the Company, relative to each other and all other
holders of Securities of the Company, are preserved.

3

 

     (t) “Subsidiary” means, with respect to any Person, any corporation, association, partnership,
limited liability company or other business entity of which 50% or more of the total voting power
of equity interests (including partnership interests) entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers, representatives or trustees
thereof is at the time owned or controlled, directly or indirectly, by (a) such Person, (b) such
Person and one or more subsidiaries of such Person, or (c) one or more subsidiaries of such Person.
For purposes of this definition, the terms “control,” “controlling,” “controlled by” and “under
common control with,” as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

     Section 1.2 Qualified Public Offering.

     (a) Upon the written request of one or more Holders owning at least fifty percent (50%) of the
Registrable Securities on a fully diluted basis, the Company shall use commercially reasonable
efforts to consummate a Qualified Public Offering within one hundred eighty (180) days from the
date on which the Company receives such written request.

     (b) The Company shall be entitled to temporarily postpone such Qualified Public Offering for a
reasonable period of time if the Board of Managers of the Company (i) determines that in the Board
of Managers’ reasonable judgment and good faith consummation of a Qualified Public Offering would
materially adversely affect the business, operations or financial position of the Company or any of
its subsidiaries and (ii) promptly gives the Holders written notice of such determination,
containing a general statement of the reasons for such postponement and an approximation of the
period of the anticipated delay; provided, however, that such postponement shall be no longer than
sixty (60) days.

     Section 1.3 Demand Registration Rights.

     (a) (i) Subject to the terms and conditions hereof, commencing on the date which is ninety
(90) days following the completion of a Qualified Public Offering, any Holder or group of Holders
(the “Initiating Holders”) shall have the right to request by written notice, which shall state the
number of shares of Registrable Securities to be disposed of and the intended methods of
disposition of such shares (the “Demand Notice”), given to the Company that the Company register
under and in accordance with the provisions of the Securities Act all or any portion of the
Registrable Securities designated by such Holder(s); provided, however, that such Registrable
Securities represent at least twenty percent (20%) of the Registrable Securities on a fully diluted
basis.

          (ii) Subject to the terms and conditions hereof, after the Company has become eligible for
the use of SEC Form S-3, each Holder shall be entitled to request by Demand Notice given to the
Company that the Company effect a Demand Registration under SEC Form S-3 or any similar short form
registration statement with respect to all or part of the Registrable
Securities designated by such Holder(s) in accordance with the provisions of the Securities
Act (each a “S-3 Demand Registration”).

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          (iii) Notwithstanding the above, the Company shall not be obligated to effect, or to take any
action to effect, any Demand Registration pursuant to Section 1.3(a)(i) above:

               (A) if the Initiating Holders, together with the holders of any other securities of the
Company entitled to inclusion in such registration, propose to sell Registrable Securities and such
other securities (if any) at an aggregate offering price to the public of less than $10,000,000;

               (B) after the Company has initiated four (4) such registrations pursuant to Section
1.3(a)(i) unless such Demand Registrations do not become effective or the applicable
Registrable Securities are not sold pursuant to such registration because the applicable Demand
Registration is not maintained in effect for the respective periods set forth in Section
1.3(c), in which case such Demand Registration shall not be treated as a counted registration
for purposes of this Section 1.3(a)(iii)(B).

               (C) in any particular jurisdiction in which the Company would be required to file a general
consent to service of process in any jurisdiction where it has not theretofore done so or to take
any action that would subject it to general service of process or taxation in any such jurisdiction
where it is not then subject, except as may be required by the Securities Act; or

               (D) if, in a given three-month period, the Company has effected one (1) Demand Registration
pursuant to Section 1.3(a)(i) in such period.

          (iv) Notwithstanding the above, the Company shall not be obligated to effect, or to take any
action to effect, any Demand Registration pursuant to Section 1.3(a)(ii) above:

               (A) if the Initiating Holders, together with the holders of any other securities of the
Company entitled to inclusion in such registration, propose to sell Registrable Securities and such
other securities (if any) on Form S-3 at an aggregate offering price to the public of less than
$1,000,000;

               (B) in any particular jurisdiction in which the Company would be required to file a general
consent to service of process in any jurisdiction where it has not theretofore done so or to take
any action that would subject it to general service of process or taxation in any such jurisdiction
where it is not then subject, except as may be required by the Securities Act; or

               (C) if, in a given one-month period, the Company has effected one (1) S-3 Demand Registration
pursuant to Section 1.3(a)(ii) in such period.

          (v) Upon receipt of a Demand Notice, the Company shall promptly (and in any event within ten
(10) business days from the date of receipt of such Demand Notice) notify all other Holders of the
receipt of such Demand Notice and allow them the opportunity to include Registrable Securities held
by them in the proposed registration by submitting their own Demand Notice. If the Initiating
Holders intend to distribute the Registrable Securities covered by their
request by means of an underwriting, then they shall so advise the Company as a part of their
Demand Notice. In such event, the right of any Holder to include such Holder’s Registrable
Securities in such registration shall be conditioned upon such Holder’s participation in such

5

 

underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless
otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to
the extent provided herein. The underwriters will be selected by the Company and shall be
reasonably acceptable to a majority in interest of the Initiating Holders. All Holders proposing
to distribute their Registrable Securities through such underwriting shall enter into an
underwriting agreement in customary form with the managing underwriter or underwriters selected for
such underwriting. Notwithstanding any other provision of this Section 1.3, in connection
with any Demand Registration in which more than one Holder participates, in the event that such
Demand Registration involves an underwritten offering and the managing underwriter or underwriters
participating in such offering advise in writing to the Holders of Registrable Securities to be
included in such offering that the total number of Registrable Securities to be included in such
offering exceeds the amount that can be sold in (or during the time of) such offering without
materially delaying or jeopardizing the success of such offering (including the price per share of
the Registrable Securities to be sold), then the Registrable Securities to be offered for the
account of the Holders who have elected to participate shall be equally divided between such
Holders pro rata on the basis of the number of Registrable Securities beneficially owned by each
such Holder); provided, however, that the number of shares of Registrable Securities to be included
in such underwriting and registration shall not be reduced unless all other securities of the
Company are first entirely excluded from the underwriting and registration. Any Registrable
Securities excluded and withdrawn from such underwriting shall be withdrawn from the registration.

     (b) The Company, within forty-five (45) days of the date on which the Company receives a
Demand Notice given by Holders in accordance with Section 1.3(a) hereof, shall file with
the SEC, and the Company shall thereafter use its commercially reasonable efforts to cause to be
declared effective as promptly as practicable, a Registration Statement, in accordance with the
intended method or methods of distribution, of the total number of Registrable Securities specified
by the Holders in such Demand Notice (a “Demand Registration”), which may, at the request of the
Holders, be a “shelf” registration (a “Shelf Registration”) pursuant to Rule 415 under the
Securities Act.

     (c) The Company shall use commercially reasonable efforts to keep each Registration Statement
filed pursuant to this Section 1.3 continuously effective and usable for the resale of the
Registrable Securities covered thereby (i) in the case of a registration that is not a Shelf
Registration, for a period of one hundred twenty (120) days from the date on which the SEC declares
such Registration Statement effective and (ii) in the case of a Shelf Registration, for a period of
two (2) years from the date on which the SEC declares such Registration Statement effective, in
either case (x) until such earlier date as all of the Registrable Securities covered by such
Registration Statement have been sold pursuant to such Registration Statement, and (y) as such
period may be extended pursuant to this Section 1.3. The time period for which the Company
is required to maintain the effectiveness of any Registration Statement shall be extended by the
aggregate number of days of all Delay Periods and all Interruption Periods occurring with respect
to such registration and such period and any extension thereof is hereinafter referred to as the
“Effectiveness Period.”

     (d) The Company shall be entitled to postpone the filing of any Registration Statement
otherwise required to be prepared and filed by the Company pursuant to this Section

6

 

1.3, or
suspend the use of any effective Registration Statement under this Section 1.3, for a
reasonable period of time (a “Delay Period”), if the Board of Managers of the Company determines
that in the Board of Managers’ reasonable judgment and good faith the registration and distribution
of the Registrable Securities covered or to be covered by such Registration Statement would
materially interfere with any pending material financing, acquisition or corporate reorganization
or other material corporate development involving the Company or any of its subsidiaries or would
require premature disclosure thereof and promptly gives the Holders written notice of such
determination, containing a general statement of the reasons for such postponement and an
approximation of the period of the anticipated delay; provided, however, that (i) the aggregate
number of days included in all Delay Periods during any consecutive twelve (12) months shall not
exceed the aggregate of (x) sixty (60) days minus (y) the number of days occurring during all
Interruption Periods during such consecutive twelve (12) months and (ii) a period of at least
forty-five (45) days shall elapse between the termination of any Delay Period or Interruption
Period and the commencement of the immediately succeeding Delay Period. If the Company shall so
postpone the filing of a Registration Statement, the Holders of Registrable Securities to be
registered shall have the right to withdraw the request for registration by giving written notice
from the Holders of a majority in number of the Registrable Securities that were to be registered
to the Company within forty-five (45) days after receipt of the notice of postponement or, if
earlier, the termination of such Delay Period (and, in the event of such withdrawal, such request
shall not be counted for purposes of determining the number of requests for registration to which
the Holders of Registrable Securities are entitled pursuant to this Section 1.3). The
Company shall not be entitled to initiate or continue a Delay Period unless it shall (A)
concurrently prohibit sales by all other security holders under registration statements covering
securities held by such other security holders and (B) in accordance with the Company’s policies
from time to time in effect, forbid purchases and sales in the open market by senior executives of
the Company.

     (e) The Company shall not include any securities that are not Registrable Securities in any
Registration Statement filed pursuant to this Section 1.3 without the prior written consent
of the Holders of a majority in number of the Registrable Securities covered by such Registration
Statement.

     (f) Holders of a majority in number of the Registrable Securities to be included in a
Registration Statement pursuant to this Section 1.3 may, at any time prior to the effective
date of the Registration Statement relating to such Registration, revoke such request by providing
a written notice to the Company revoking such request. Any such Demand Request so withdrawn shall
not be counted for purposes of determining the number of requests for registration to which the
Holders of Registrable Securities are entitled pursuant to this Section 1.3 if the Holders
of Registrable Securities who revoked such request reimburse the Company for all its out-of-pocket
expenses incurred in the preparation, filing and processing of the Registration Statement;
provided, however, that, if such revocation was based on (i) the Company’s failure to comply in any
material respect with its obligations hereunder, (ii) the institution by the Company of a Delay
Period or (iii) a material adverse change in the condition, business or prospects of the Company
not known to the Holders at the time of their request for such registration and such revocation
was made with reasonable promptness after the Holders learned of such material adverse change,
such reimbursement shall not be required.

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     Section 1.4 Piggyback Registrations.

     (a) Right to Include Registrable Securities. Each time that the Company proposes for
any reason to register any of its equity securities under the Securities Act for its own account
other than pursuant to a Registration Statement on Forms S-4 or S-8 (or similar or successor forms)
or a registration pursuant to Section 1.3, a registration relating solely to employee
benefit plans, a registration relating to the offer and sale of debt securities, a registration
relating to a corporate reorganization or other Rule 145 transaction, or a registration on any
registration form that does not permit secondary sales (a “Proposed Registration”), the Company
shall promptly give written notice of such Proposed Registration to all of the Holders of
Registrable Securities (which notice shall be given not less than thirty (30) days prior to the
expected effective date of the Company’s Registration Statement) and shall, subject to the
provisions of this Section 1.4, use its commercially reasonable efforts to cause to be
registered all of the Registrable Securities that each such Holder has requested to be included in
such Proposed Registration. The rights to piggyback registration may be exercised an unlimited
number of occasions.

     (b) Piggyback Procedure. Each Holder of Registrable Securities shall have twenty (20)
days from the date of receipt of the Company’s notice referred to in Section 1.4(a) above
to deliver to the Company a written request specifying the number of Registrable Securities such
Holder intends to sell and such Holder’s intended method of disposition. Any Holder shall have the
right to withdraw such Holder’s request for inclusion of such holder’s Registrable Securities in
any Registration Statement pursuant to this Section 1.4 by giving written notice to the
Company of such withdrawal; provided, however, that the Company may ignore a notice of withdrawal
made within twenty-four (24) hours of the time the Registration Statement is to become effective.
Subject to Section 1.4(d) below, the Company shall use its commercially reasonable efforts
to include in such Registration Statement all such Registrable Securities so requested to be
included therein; provided, however, that the Company may at any time withdraw or cease proceeding
with any such Proposed Registration if it shall at the same time withdraw or cease proceeding with
the registration of all other equity securities originally proposed to be registered. If a
registration of which the Company gives notice under this Section 1.4 is for an
underwritten offering, then the Company shall so advise the Holders. In such event, the right of
any Holder to include such Holder’s Registrable Securities in such registration shall be
conditioned upon such Holder’s participation in such underwriting and the inclusion of such
Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders
proposing to distribute their Registrable Securities through such underwriting shall enter into an
underwriting agreement in customary form with the managing underwriters selected for such
underwriting. If any Holder disapproves of the terms of any such underwriting, such Holder may
elect to withdraw therefrom by written notice to the Company and the managing underwriters. Any
Registrable Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn
from the registration.

     (c) Selection of Underwriters. The managing underwriter for any Proposed Registration
that involves an underwritten public offering shall be one or more reputable
nationally recognized investment banks selected by the Company and reasonably acceptable to a
majority in interest of the Participating Holders.

8

 

     (d) Priority for Piggyback Registration. Notwithstanding any other provision of this
Agreement, if the managing underwriter of an underwritten public offering determines and advises
the Company and the Holders in writing that the inclusion of all Registrable Securities proposed to
be included by the Holders of Registrable Securities in the underwritten public offering would
materially and adversely interfere with the successful marketing of the Company’s securities, then
the Holders of Registrable Securities shall not be permitted to include any Registrable Securities
in excess of the amount, if any, of Registrable Securities which the managing underwriter of such
underwritten public offering shall reasonably and in good faith agree in writing to include in such
public offering in addition to the amount of securities to be registered for the Company. The
Company will be obligated to include in such Registration Statement, as to each Holder, only a
portion of the Registrable Securities such Holder has requested be registered equal to the ratio
which such Holder’s requested Registrable Securities bears to the total number of Registrable
Securities requested to be included in such Registration Statement by all Holders who have
requested that their Registrable Securities be included in such Registration Statement. It is
acknowledged by the parties hereto that pursuant to the foregoing provision, the securities to be
included in a registration initiated by the Company shall be allocated:

          (i) first, to the Company;

          (ii) second, pari passu to the Participating Holders; and

          (iii) third, to any others requesting registration of securities of the Company.

     If as a result of the provisions of this Section 1.4(d), any Holder shall not be
entitled to include all of its Registrable Securities in a registration that such Holder has
requested to be so included, such Holder may withdraw such Holder’s request to include Registrable
Securities in such Registration Statement.

     Section 1.5 Holdback Agreements.

     (a) Restrictions on Public Sale by Holders. Restrictions on Public Sale by
Securityholders. If requested by the lead managing underwriter, each Securityholder agrees not to
effect any public sale or distribution of any Company Securities (including any Reclassified
Securities) or of any securities convertible into or exchangeable or exercisable for such Company
Securities (including any Reclassified Securities), including a sale pursuant to Rule 144 under the
Securities Act, during a period of not more than one hundred and eighty (180) days after, an IPO
pursuant to an effective Registration Statement commencing on the effective date of the
Registration Statement (the “Lock-Up Period”), unless expressly authorized to do so by the lead
managing underwriter; provided, however, that if any other holder of securities of the Company
shall be subject to a shorter period or receives more advantageous terms relating to the Lock-Up
Period, then the Lock-Up Period shall be such shorter period and also on such more advantageous
terms and notwithstanding the foregoing, the Securityholders shall not be required to sign lock-up
agreements unless all of the Company’s directors, officers and securityholders
owning one percent (1%) or more of the Company’s fully diluted voting stock have signed
lock-up agreements with the managing underwriters. Any such lock-up agreements signed by the
Securityholders shall contain reasonable and customary exceptions, including, without limitation,

9

 

     the right of a Securityholder to make transfers to certain Affiliates and transfers related to
securities owned by Securityholders as a result of open market purchases made following the closing
of the applicable offering. The Company shall be authorized to impose stop-transfer instructions
with respect to the securities subject to the foregoing restrictions until the end of the relevant
period.

     (b) Restrictions on Public Sale by the Company. The Company agrees not to effect any
public sale or distribution of any securities for its own account (except pursuant to registrations
on Form S-4 or S-8 or any similar or successor form) during any Lock-Up Period, to the extent
reasonably requested by the managing underwriter (except for securities being sold by the Company
for its own account under such Registration Statement).

     Section 1.6 Registration Procedures.

     (a) Obligations of the Company. Whenever registration of Registrable Securities is
required pursuant to this Agreement, the Company shall use its commercially reasonable efforts to
effect the registration and sale of such Registrable Securities in accordance with the intended
method of distribution thereof as promptly as possible, and in connection with any such request,
the Company shall, as expeditiously as possible:

          (i) Preparation of Registration Statement; Effectiveness. Prepare and file with the SEC, a
Registration Statement on any form on which the Company then qualifies, which counsel for the
Company shall deem appropriate and pursuant to which such offering may be made in accordance with
the intended method of distribution thereof (except that the Registration Statement shall contain
such information as may reasonably be requested for marketing or other purposes by the managing
underwriter), and use its commercially reasonable efforts to cause any registration required
hereunder to become effective as soon as practicable after the initial filing thereof and remain
effective for a period of not less than two hundred and ten (210) days (or such shorter period in
which all Registrable Securities have been sold in accordance with the methods of distribution set
forth in the Registration Statement); provided, however, that, in the case of any registration of
Registrable Securities on Form S-3 which are intended to be offered on a continuous or delayed
basis, such two hundred and ten (210) day period shall be extended, if necessary, to keep the
Registration Statement effective until all such Registrable Securities are sold, provided that Rule
415, or any successor rule under the Securities Act, permits an offering on a continuous or delayed
basis;

          (ii) Participation in Preparation. Provide any Participating Holder holding more than ten
percent (10%) of all Registrable Securities, any underwriter participating in any disposition
pursuant to a Registration Statement, and any attorney, accountant or other agent retained by any
such Participating Holder or underwriter (each, an “Inspector” and, collectively, the
“Inspectors”), the opportunity to participate (including, but not limited to, reviewing, commenting
on and attending all meetings) in the preparation of such Registration Statement, each prospectus
included therein or filed with the SEC and each amendment or supplement thereto;

          (iii) Due Diligence. For a reasonable period prior to the filing of any Registration
Statement pursuant to this Agreement, make available for inspection and copying by

10

 

the Inspectors
such financial and other information and books and records, pertinent corporate documents and
properties of the Company and its subsidiaries and cause the officers, directors, employees,
counsel and independent certified public accountants of the Company and its subsidiaries to respond
to such inquiries and to supply all information reasonably requested by any such Inspector in
connection with such Registration Statement, as shall be reasonably necessary, in the judgment of
the respective counsel referred to in Section 1.6(a)(ii), to conduct a reasonable
investigation within the meaning of the Securities Act; provided, however, that if requested by the
Company, each Inspector shall enter into a confidentiality agreement with the Company prior to
participating in the preparation of the Registration Statement or the Company’s release or
disclosure of confidential information to such Inspector;

          (iv) General Notifications. Promptly notify in writing the Participating Holders, the sales
or placement agent, if any, therefor and the managing underwriter of the securities being sold, (A)
when such Registration Statement or the prospectus included therein or any prospectus amendment or
supplement or post-effective amendment has been filed, and, with respect to any such Registration
Statement or any post-effective amendment, when the same has become effective, (B) when the SEC
notifies the Company whether there will be a “review” of such Registration Statement, (C) of any
comments (oral or written) by the SEC and by the blue sky or securities commissioner or regulator
of any state with respect thereto and (D) of any request by the SEC for any amendments or
supplements to such Registration Statement or the prospectus or for additional information;

          (v) 10b-5 Notification. Promptly notify in writing the Participating Holders, the sales or
placement agent, if any, therefor and the managing underwriter of the securities being sold
pursuant to any Registration Statement at any time when a prospectus relating thereto is required
to be delivered under the Securities Act upon discovery that, or upon the happening of any event as
a result of which, any prospectus included in such Registration Statement (or amendment or
supplement thereto) contains an untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the statements therein not misleading in
light of the circumstances under which they were made, and the Company shall promptly prepare a
supplement or amendment to such prospectus and file it with the SEC (in any event no later than ten
(10) days following notice of the occurrence of such event to each Participating Holder, the sales
or placement agent and the managing underwriter) so that after delivery of such prospectus, as so
amended or supplemented, to the purchasers of such Registrable Securities, such prospectus, as so
amended or supplemented, shall not contain an untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances under which they were made;

          (vi) Notification of Stop Orders; Suspensions of Qualifications and Exemptions. Promptly
notify in writing the Participating Holders, the sales or placement agent, if any, therefor and the
managing underwriter of the securities being sold of the issuance by the SEC of (A) any stop order
issued or threatened to be issued by the SEC or (B) any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Registrable Securities for sale
in any jurisdiction or the initiation or threatening of any
proceeding for such purpose and the Company agrees to use its commercially reasonable efforts
to (x) prevent the issuance of any such stop order, and in the event of such issuance, to obtain
the

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withdrawal of any such stop order and (y) obtain the withdrawal of any order suspending or
preventing the use of any related prospectus or suspending the qualification of any Registrable
Securities included in such Registration Statement for sale in any jurisdiction at the earliest
practicable date;

          (vii) Amendments and Supplements. Prepare and file with the SEC such amendments, including
post-effective amendments to each Registration Statement as may be necessary to keep such
Registration Statement continuously effective for the applicable time period required hereunder and
if applicable, file any Registration Statements pursuant to Rule 462(b) under the Securities Act;
cause the related prospectus to be supplemented by any required prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) promulgated
under the Securities Act; and comply with the provisions of the Securities Act and the Exchange Act
with respect to the disposition of all securities covered by such Registration Statement during
such period in accordance with the intended methods of disposition by the sellers thereof set forth
in such Registration Statement as so amended or in such prospectus as so supplemented;

          (viii) Copies. Furnish as promptly as practicable to each Participating Holder and Inspector
prior to filing a Registration Statement or any supplement or amendment thereto, copies of such
Registration Statement, supplement or amendment as it is proposed to be filed, and after such
filing such number of copies of such Registration Statement, each amendment and supplement thereto
(in each case including all exhibits thereto), the prospectus included in such Registration
Statement (including each preliminary prospectus) and such other documents as each such
Participating Holder or underwriter may reasonably request in order to facilitate the disposition
of the Registrable Securities owned by such Participating Holder;

          (ix) Blue Sky. Use its commercially reasonable efforts to, prior to any public offering of
the Registrable Securities, register or qualify (or seek an exemption from registration or
qualifications) such Registrable Securities under such other securities or blue sky laws of such
jurisdictions as any Participating Holder or underwriter may request, and to continue such
qualification in effect in each such jurisdiction for as long as is permissible pursuant to the
laws of such jurisdiction, or for as long as a Participating Holder or underwriter requests or
until all of such Registrable Securities are sold, whichever is shortest, and do any and all other
acts and things which may be reasonably necessary or advisable to enable any Participating Holder
to consummate the disposition in such jurisdictions of the Registrable Securities; provided,
however, that the Company shall not be required in connection therewith or as a condition thereto
to qualify to do business or to file a general consent of process in any such states or
jurisdictions or subject itself to material taxation in any such state or jurisdiction, but for
this subparagraph;

          (x) Other Approvals. Use its commercially reasonable efforts to obtain all other approvals,
consents, exemptions or authorizations from such governmental agencies or authorities as may be
necessary to enable the Participating Holders and underwriters to consummate the disposition of
Registrable Securities;

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          (xi) Agreements. Enter into customary agreements (including any underwriting agreements in
customary form), and take such other actions as may be reasonably required in order to expedite or
facilitate the disposition of Registrable Securities;

          (xii) “Cold Comfort” Letter. Obtain a “cold comfort” letter from the Company’s independent
public accountants in customary form and covering such matters of the type customarily covered by
“cold comfort” letters as the managing underwriter may reasonably request;

          (xiii) Legal Opinion. Furnish, at the request of any underwriter of Registrable Securities on
the date such securities are delivered to the underwriters for sale pursuant to such registration,
an opinion, dated such date, of counsel representing the Company for the purposes of such
registration, addressed to the underwriter, covering such legal matters with respect to the
registration in respect of which such opinion is being given as such underwriter may reasonably
request and as are customarily included in such opinions;

          (xiv) SEC Compliance, Earnings Statement. Use its commercially reasonable efforts to comply
with all applicable rules and regulations of the SEC and make available to its securityholders, as
soon as reasonably practicable, but no later than fifteen (15) months after the effective date of
any Registration Statement, an earnings statement covering a period of twelve (12) months beginning
after the effective date of such Registration Statement, in a manner which satisfies the provisions
of Section 11(a) of the Securities Act and Rule 158 thereunder;

          (xv) Certificates, Closing. Provide customary officers’ certificates and other customary
closing documents;

          (xvi) FINRA. Cooperate with each Participating Holder and each underwriter participating in
the disposition of such Registrable Securities and underwriters’ counsel in connection with any
filings required to be made with the FINRA;

          (xvii) Road Show. Cause appropriate officers as are requested by an managing underwriter to
participate in a “road show” or similar marketing effort being conducted by such underwriter with
respect to an underwritten public offering;

          (xviii) Listing. Use commercially reasonable efforts to cause all such Registrable Securities
to be listed on each securities exchange on which similar securities issued by the Company are then
listed;

          (xix) Transfer Agent, Registrar and CUSIP. Provide a transfer agent and registrar for all
Registrable Securities registered pursuant hereto and a CUSIP number for all such Registrable
Securities, in each case, no later than the effective date of such registration;

          (xx) Private Sales. Use its commercially reasonable efforts to assist a Holder in
facilitating private sales of Registrable Securities by, among other things, providing officers’
certificates and other customary closing documents; and

13

 

           (xxi) Commercially Reasonable Efforts. Use its commercially reasonable efforts to take all
other actions necessary to effect the registration of the Registrable Securities contemplated
hereby.

     (b) Delay of Registration; Seller Information.

          (i) Delay of Registration. No Holder shall have any right to obtain or seek an injunction
restraining or otherwise delaying any such registration as the result of any controversy that might
arise with respect to the interpretation or implementation of this Agreement.

          (ii) Seller Information. The Company may require each Participating Holder as to which any
registration of such Holder’s Registrable Securities is being effected to furnish to the Company
with such information regarding such Participating Holder and such Participating Holder’s method of
distribution of such Registrable Securities as the Company may from time to time reasonably request
in writing. If a Participating Holder refuses to provide the Company with any of such information
on the grounds that it is not necessary to include such information in the Registration Statement,
the Company may exclude such Participating Holder’s Registrable Securities from the Registration
Statement. The exclusion of a Participating Holder’s Registrable Securities shall not affect the
registration of the other Registrable Securities to be included in the Registration Statement.

     (c) Notice to Discontinue. Each Participating Holder whose Registrable Securities are
covered by a Registration Statement filed pursuant to this Agreement agrees that, upon receipt of
written notice from the Company of the happening of any event of the kind described in Section
1.6(a)(v), such Participating Holder shall forthwith discontinue the disposition of Registrable
Securities until such Participating Holder’s receipt of the copies of the supplemented or amended
prospectus contemplated by Section 1.6(a)(v) or until it is advised in writing by the
Company that the use of the prospectus may be resumed and has received copies of any additional or
supplemental filings which are incorporated by reference into the prospectus (such period during
which disposition is discontinued being an “Interruption Period”), and, if so directed by the
Company in the case of an event described in Section 1.6(a)(v), such Participating Holder
shall deliver to the Company (at the Company’s expense) all copies, other than permanent file
copies then in such Participating Holder’s possession, of the prospectus covering such Registrable
Securities which is current at the time of receipt of such notice. If the Company shall give any
such notice, the Company shall extend the period during which such Registration Statement is to be
maintained effective by the number of days of the Interruption Period.

     Section 1.7 Registration Expenses. Except as otherwise provided herein, all Registration
Expenses shall be borne by the Company. All Selling Expenses relating to Registrable Securities
registered shall be borne by the Participating Holders of such Registrable Securities pro rata on
the basis of the number of securities on a fully diluted basis so registered.

     Section 1.8 Indemnification.

     (a) Indemnification by the Company. The Company agrees, notwithstanding termination
of this Agreement, to indemnify and hold harmless to the fullest extent permitted by

14

 

law, each Holder, each of its directors, officers, employees, advisors, agents and general or
limited partners (and the directors, officers, employees, advisors and agents thereof), their
respective Affiliates and each Person who controls (within the meaning of the Securities Act or the
Exchange Act) any of such Persons, and each underwriter and each Person who controls (within the
meaning of the Securities Act or the Exchange Act) any underwriter (collectively, “Holder
Indemnified Parties”) from and against any and all losses, claims, damages, expenses (including,
without limitation, reasonable costs of investigation and fees, disbursements and other charges of
counsel, any amounts paid in settlement effected with the Company’s consent, which consent shall
not be unreasonably withheld or delayed and any costs incurred in enforcing the Company’s
indemnification obligations hereunder) or other liabilities (collectively, “Losses”) to which any
such Holder Indemnified Party may become subject under the Securities Act, Exchange Act, any other
federal law, any state or common law or any rule or regulation promulgated thereunder or otherwise,
insofar as such Losses (or actions or proceedings, whether commenced or threatened, in respect
thereof) are resulting from or arising out of or based upon (i) any untrue, or alleged untrue,
statement of a material fact contained in any Registration Statement, prospectus or preliminary
prospectus (as amended or supplemented) or any document incorporated by reference in any of the
foregoing or resulting from or arising out of or based upon any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements
therein (in the case of a prospectus, in light of the circumstances under which they were made),
not misleading or (ii) any violation by the Company of the Securities Act, Exchange Act, any other
federal law, any state or common law or any rule or regulation promulgated thereunder or otherwise
incident to any registration, qualification or compliance and in any such case, the Company will
promptly reimburse each such Holder Indemnified Party for any legal and any other Losses reasonably
incurred in connection with investigating, preparing or defending any such claim, loss, damage,
liability, action or investigation or proceeding (collectively, a “Claim”); provided, however, that
the Company shall not be liable to any Holder Indemnified Party for any Losses that arise out of or
are based upon (x) written information provided by a Holder Indemnified Party expressly for use in
the Registration Statement or (y) sales of Registrable Securities by a Holder Indemnified Party to
a person to whom there was not sent or given, at or before the written confirmation of such sale, a
copy of the prospectus (excluding documents incorporated by reference) or the prospectus as then
amended or supplemented (excluding documents incorporated by reference) if the Company has
previously furnished in a timely manner a reasonable number of copies thereof to such Holder
Indemnified Party in compliance with this Agreement and the Losses of such Holder Indemnified Party
results from an untrue statement or omission of a material fact contained in such preliminary
prospectus which was corrected in the prospectus (or the prospectus as then amended or
supplemented). Such indemnity obligation shall remain in full force and effect regardless of any
investigation made by or on behalf of the Holder Indemnified Parties and shall survive the transfer
of Registrable Securities by such Holder Indemnified Parties.

     (b) Indemnification by Holders. In connection with any proposed registration in which
a Holder is participating pursuant to this Agreement, each such Holder shall furnish to the Company
in writing such information with respect to such Holder as the Company may reasonably request or as
may be required by law for use in connection with any Registration Statement or prospectus or
preliminary prospectus to be used in connection with such registration and each Holder agrees,
severally and not jointly, to indemnify and hold harmless the Company, any underwriter retained by
the Company and their respective directors, officers,

15

 

partners, employees, advisors and agents, their respective Affiliates and each Person who
controls (within the meaning of the Securities Act or the Exchange Act) any of such Persons to the
same extent as the foregoing indemnity from the Company to the Holders as set forth in Section
1.8(a) (subject to the exceptions set forth in the foregoing indemnity, the proviso to this
sentence and applicable law), but only with respect to any such information furnished in writing by
such Holder expressly for use therein; provided, however, that the liability of any Holder under
this Section 1.8(b) shall be limited to the amount of the net proceeds received by such
Holder in the offering giving rise to such liability. Such indemnity obligation shall remain in
full force and effect regardless of any investigation made by or on behalf of the Holder
Indemnified Parties (except as provided above) and shall survive the transfer of Registrable
Securities by such Holder.

     (c) Conduct of Indemnification Proceedings. Any Person entitled to indemnification
hereunder (the “Indemnified Party”) agrees to give prompt written notice to the indemnifying party
(the “Indemnifying Party”) after the receipt by the Indemnified Party of any written notice of the
commencement of any action, suit, proceeding or investigation or threat thereof made in writing for
which the Indemnified Party intends to claim indemnification or contribution pursuant to this
Agreement; provided, however, that, the failure so to notify the Indemnifying Party shall not
relieve the Indemnifying Party of any liability that it may have to the Indemnified Party hereunder
unless and to the extent such Indemnifying Party is materially prejudiced by such failure. If
notice of commencement of any such action is given to the Indemnifying Party as above provided, the
Indemnifying Party shall be entitled to participate in and, to the extent it may wish, jointly with
any other Indemnifying Party similarly notified, to assume the defense of such action at its own
expense, with counsel chosen by it and reasonably satisfactory to such Indemnified Party. The
Indemnified Party shall have the right to employ separate counsel in any such action and
participate in the defense thereof, but the fees and expenses of such counsel shall be paid by the
Indemnified Party unless (i) the Indemnifying Party agrees to pay the same, (ii) the Indemnifying
Party fails to assume the defense of such action with counsel satisfactory to the Indemnified Party
in its reasonable judgment or (iii) the named parties to any such action (including, but not
limited to, any impleaded parties) reasonably believe that the representation of such Indemnified
Party and the Indemnifying Party by the same counsel would be inappropriate under applicable
standards of professional conduct. In the case of clause (ii) above and (iii) above, the
Indemnifying Party shall not have the right to assume the defense of such action on behalf of such
Indemnified Party. No Indemnifying Party shall be liable for any settlement entered into without
its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party
shall, without the written consent of the Indemnified Party, effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or threatened action or
claim in respect of which indemnification or contribution may be sought hereunder (whether or not
the Indemnified Party is an actual or potential party to such action or claim) unless such
settlement, compromise or judgment (A) includes an unconditional release of the Indemnified Party
from all liability arising out of such action or claim and (B) does not include a statement as to,
or an admission of, fault, culpability or a failure to act by or on behalf of any Indemnified
Party. The rights afforded to any Indemnified Party hereunder shall be in addition to any rights
that such Indemnified Party may have at common law, by separate agreement or otherwise.

16

 

     (d) Contribution. If the indemnification provided for in this Section 1.8
from the Indemnifying Party is unavailable or insufficient to hold harmless an Indemnified Party in
respect of any Losses referred to herein, then the Indemnifying Party, in lieu of indemnifying the
Indemnified Party, shall contribute to the amount paid or payable by the Indemnified Party as a
result of such Losses in such proportion as is appropriate to reflect the relative fault of the
Indemnifying Party and the Indemnified Party, as well as any other relevant equitable
considerations. The relative faults of the Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question, including any
untrue or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact, was made by, or relates to information supplied by, such Indemnifying Party or
Indemnified Party, and the Indemnifying Party’s and Indemnified Party’s relative intent, knowledge,
access to information and opportunity to correct or prevent such action; provided, however, that
the liability of any Holder under this Section 1.8(d) shall be limited to the amount of the
net proceeds received by such Holder in the offering giving rise to such liability. The amount
paid or payable by a party as a result of the Losses or other liabilities referred to above shall
be deemed to include, subject to the limitations set forth in Sections 1.8(a),
1.8(b) and 1.8(c), any legal or other fees, charges or expenses reasonably incurred
by such party in connection with any investigation or proceeding.

     The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 1.8(d) were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred to in the
immediately preceding paragraph. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to contribution pursuant to this
Section 1.8(d).

     Section 1.9 Certain Limitations on Registration Rights. No Holder may participate in any
Registration Statement hereunder unless such Holder completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements, and other documents reasonably required
under the terms of such underwriting arrangements and agrees to sell such Holder’s Registrable
Securities on the basis provided in any such underwriting agreement; provided, however, that no
such Holder shall be required to make any representations or warranties to the Company or the
underwriters in connection with any such registration other than representations and warranties as
to (i) such Holder’s ownership of its Registrable Securities to be sold or transferred, (ii) such
Holder’s power and authority to effect such transfer and (iii) such matters pertaining to
compliance with securities laws as may be reasonably requested. Such Holders of Registrable
Securities to be sold by such underwriters may, at their option, require that any or all of the
representations and warranties by, and the other agreements on the part of the Company to and for
the benefit of such underwriters, shall also be made to and for the benefit of such Holders and
that any or all of the conditions precedent to the obligations of the underwriters under the
underwriting agreement be conditions precedent to the obligations of the Holders; provided,
however, that this requirement shall not apply to piggyback registrations as set forth in
Section 1.4 hereof.

     Section 1.10 Limitations on Subsequent Registration Rights. The Company represents and
warrants that, except as set forth in this Agreement, it has not granted registration rights with
respect to any of the Company’s presently outstanding securities or any of its

17

 

securities that may hereafter be issued and agrees that from and after the date of this
Agreement, it shall not, without the prior written consent of the Holders of at least a majority of
the Registrable Securities then outstanding on a fully diluted basis, enter into any agreement (or
amendment or waiver of the provisions of any agreement) with any holder or prospective holder of
any securities of the Company that would grant such holder registration rights that are more
favorable or senior to those granted to the Holders hereunder.

     Section 1.11 Transfer of Registration Rights. The rights of a Holder hereunder may be
transferred or assigned in connection with a transfer of Registrable Securities to (i) any
Affiliate of a Holder, (ii) any subsidiary, parent, partner, retired partner, limited partner,
shareholder or member of a Holder or (iii) any family member or trust for the benefit of any
Holder, or (iv) any transferee who, after such transfer, holds at least one percent (1%) of the
Registrable Securities on a fully diluted basis (as adjusted for any stock dividends, stock splits,
combinations and reorganizations and similar events). Notwithstanding the foregoing, such rights
may only be transferred or assigned provided that all of the following additional conditions are
satisfied: (a) such transfer or assignment is effected in accordance with applicable securities
laws; (b) such transferee or assignee agrees in writing to become subject to the terms of this
Agreement as a Securityholder; and (c) the Company is given written notice by such Holder of such
transfer or assignment, stating the name and address of the transferee or assignee and identifying
the Registrable Securities with respect to which such rights are being transferred or assigned.

     Section 1.12 Termination of Registration Rights. The rights contained in Sections
1.2, 1.3, and 1.9 hereof shall terminate at the earlier of (a) the date on
which all of the Registrable Securities have been sold pursuant to a registered offering or (b) as
to any Holder, at any time following an IPO, the date on which all Registrable Securities of such
Holder may be sold without volume and manner of sale limitations under the Securities Act pursuant
to Rule 144.

ARTICLE II.

GENERAL PROVISIONS

     Section 2.1 Survival of Agreements. All covenants, agreements, representations and warranties
made in this Agreement shall survive the execution and delivery of this Agreement, the issuance,
sale and delivery of the Initial Securities.

     Section 2.2 Entire Agreement. This Agreement, together with the Schedules hereto and any
certificates, documents, instruments and writings that are delivered pursuant hereto, constitutes
the entire agreement and understanding of the parties in respect of the subject matter hereof and
supersedes all prior understandings, agreements or representations by or among the parties, written
or oral, to the extent they relate in any way to the subject matter hereof.

     Section 2.3 Assignment; Binding Effect. Subject to Section 1.11, no party may assign
either this Agreement or any of its rights, interests or obligations hereunder without the prior
written approval of the other parties; provided, however, that each Securityholder may (a) assign
any or all of its rights and interests hereunder to one or more of its Affiliates and (b)

18

 

designate one or more of its Affiliates to perform its obligations hereunder (in any or all of
which cases such Securityholder nonetheless will remain responsible for the performance of all of
its obligations hereunder). All of the terms, agreements, covenants, representations, warranties
and conditions of this Agreement are binding upon, and inure to the benefit of and are enforceable
by, the parties and their respective successors and permitted assigns.

     Section 2.4 Notices. All notices, requests and other communications provided for or permitted
to be given under this Agreement must be in writing and shall be given by personal delivery, by
certified or registered United States mail (postage prepaid, return receipt requested), by a
nationally recognized overnight delivery service for next day delivery, or by facsimile
transmission, as follows (or to such other address as any party may give in a notice given in
accordance with the provisions hereof):

	 	 	If to a Securityholder:

In accordance with the contact information set forth on Schedule I attached
hereto.

	 	 	If to the Company:

MagnaChip Semiconductor LLC

c/o MagnaChip Semiconductor Ltd.

891 Daechi-dong, Gangnam-gu

Seoul 135-738 Korea

Attn: General Counsel

Fax: 82-2-6903-3898

All notices, requests or other communications will be effective and deemed given only as follows:
(i) if given by personal delivery, upon such personal delivery, (ii) if sent by certified or
registered mail, on the fifth business day after being deposited in the United States mail, (iii)
if sent for next day delivery by overnight delivery service, on the date of delivery as confirmed
by written confirmation of delivery, (iv) if sent by facsimile, upon the transmitter’s confirmation
of receipt of such facsimile transmission, except that if such confirmation is received after 5:00
p.m. (in the recipient’s time zone) on a business day, or is received on a day that is not a
business day, then such notice, request or communication will not be deemed effective or given
until the next succeeding business day. Notices, requests and other communications sent in any
other manner, including by electronic mail, will not be effective.

     Section 2.5 Specific Performance; Remedies. Each party acknowledges and agrees that the other
parties would be damaged irreparably if any provision of this Agreement were not performed in
accordance with its specific terms or were otherwise breached. Accordingly, the parties will be
entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement
and to enforce specifically this Agreement and its provisions in any action or proceeding
instituted in any court of the United States or any state thereof having jurisdiction over the
parties and the matter, subject to Section 2.6 and Section 2.7, in addition to any
other remedy to which they may be entitled, at law or in equity. Except as expressly provided
herein, the rights, obligations and remedies created by this Agreement are cumulative and in
addition to

19

 

any other rights, obligations or remedies otherwise available at law or in equity. Except as
expressly provided herein, nothing herein will be considered an election of remedies.

     Section 2.6 Submission to Jurisdiction; Waiver of Jury Trial.

     (a) Submission to Jurisdiction. Any action, suit or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this Agreement or the
transactions contemplated hereby shall only be brought in any federal court located in the State of
New York or any New York state court, and each party consents to the exclusive jurisdiction and
venue of such courts (and of the appropriate appellate courts therefrom) in any such action, suit
or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it
may now or hereafter have to the laying of the venue of any such, action, suit or proceeding in any
such court or that any such action, suit or proceeding brought in any such court has been brought
in an inconvenient forum. Process in any such action, suit or proceeding may be served on any
party anywhere in the world, whether within or without the jurisdiction of any such court. Without
limiting the foregoing, service of process on such party as provided in Section 2.4 shall
be deemed effective service of process on such party.

     (b) Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES THAT ANY DISPUTE THAT MAY ARISE OUT
OF OR RELATING TO THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND
THEREFORE SUCH PARTY HEREBY EXPRESSLY WAIVES ITS RIGHT TO JURY TRIAL OF ANY DISPUTE BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR ANY OTHER AGREEMENTS RELATING HERETO OR ANY DEALINGS AMONG THEM
RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY. THE SCOPE OF THIS WAIVER IS INTENDED TO
ENCOMPASS ANY AND ALL ACTIONS, SUITS AND PROCEEDINGS THAT RELATE TO THE SUBJECT MATTER OF THE
TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS,
AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY REPRESENTS THAT (i) NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER,
(ii) SUCH PARTY UNDERSTANDS AND WITH THE ADVICE OF COUNSEL HAS CONSIDERED THE IMPLICATIONS OF THIS
WAIVER, (iii) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) SUCH PARTY HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND REPRESENTATIONS IN THIS
SECTION 2.6(b).

     Section 2.7 Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the State of New York, without giving effect to any choice of law principles.

     Section 2.8 Headings. The article and section headings contained in this Agreement are
inserted for convenience only and will not affect in any way the meaning or interpretation of this
Agreement.

20

 

     Section 2.9 Amendments. Other than with respect to amendments to Schedule I hereto,
which may be amended by the Company to reflect additional Securityholders or permitted transfers,
this Agreement may not be amended or modified without the written consent of the Company and the
Securityholders holding at least a majority of the Registrable Securities then outstanding on a
fully diluted basis.

     Section 2.10 Extensions; Waivers. Any party may, for itself only, (a) extend the time for the
performance of any of the obligations of any other party under this Agreement, (b) waive any
inaccuracies in the representations and warranties of any other party contained herein or in any
document delivered pursuant hereto and (c) waive compliance with any of the agreements or
conditions for the benefit of such party contained herein. Any such extension or waiver will be
valid only if set forth in a writing signed by the party to be bound thereby. No waiver by any
party of any default, misrepresentation or breach of warranty or covenant hereunder, whether
intentional or not, may be deemed to extend to any prior or subsequent default, misrepresentation
or breach of warranty or covenant hereunder or affect in any way any rights arising because of any
prior or subsequent such occurrence. Neither the failure nor any delay on the part of any party to
exercise any right or remedy under this Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of any right or remedy preclude any other or further exercise of the
same or of any other right or remedy.

     Section 2.11 Severability. The provisions of this Agreement will be deemed severable and the
invalidity or unenforceability of any provision will not affect the validity or enforceability of
the other provisions hereof; provided, that if any provision of this Agreement, as applied
to any party or to any circumstance, is judicially determined not to be enforceable in accordance
with its terms, the parties agree that the court judicially making such determination may modify
the provision in a manner consistent with its objectives such that it is enforceable, and/or to
delete specific words or phrases, and in its modified form, such provision will then be enforceable
and will be enforced.

     Section 2.12 Counterparts; Effectiveness. This Agreement may be executed in two or more
counterparts, each of which will be deemed an original but all of which together will constitute
one and the same instrument. This Agreement will become effective when one or more counterparts
have been signed by each of the parties and delivered to the other parties. For purposes of
determining whether a party has signed this Agreement or any document contemplated hereby or any
amendment or waiver hereof, only a handwritten original signature on a paper document or a
facsimile copy of such a handwritten original signature shall constitute a signature,
notwithstanding any law relating to or enabling the creation, execution or delivery of any contract
or signature by electronic means.

     Section 2.13 Construction. This Agreement has been freely and fairly negotiated among the
parties. If an ambiguity or question of intent or interpretation arises, this Agreement will be
construed as if drafted jointly by the parties and no presumption or burden of proof will arise
favoring or disfavoring any party because of the authorship of any provision of this Agreement.
Any reference to any law will be deemed to refer to such law as in effect on the date hereof and
all rules and regulations promulgated thereunder, unless the context requires otherwise. The words
“include,” “includes,” and “including” will be deemed to be followed by “without limitation.”
Pronouns in masculine, feminine, and neuter genders will be construed to

21

 

include any other gender, and words in the singular form will be construed to include the
plural and vice versa, unless the context otherwise requires. The words “this Agreement,”
“herein,” “hereof,” “hereby,” “hereunder,” and words of similar import refer to this Agreement as a
whole and not to any particular subdivision unless expressly so limited. The parties intend that
each representation, warranty, and covenant contained herein will have independent significance.
If any party has breached any covenant contained herein in any respect, the fact that there exists
another covenant relating to the same subject matter (regardless of the relative levels of
specificity) which the party has not breached will not detract from or mitigate the fact that the
party is in breach of the first covenant.

     Section 2.14 Adjustments for Stock Splits, Etc. Wherever in this Agreement there is a
reference to a specific number of the Company’s securities, then, upon the occurrence of any
subdivision, combination or stock dividend of such securities, the specific number of securities so
referenced in this Agreement will automatically be proportionally adjusted to reflect the effect of
such subdivision, combination or stock dividend on the outstanding securities of such class or
series.

     Section 2.15 Aggregation of Stock. All securities owned or acquired by any Securityholder or
its Affiliated entities or persons (assuming full conversion, exchange and exercise of all
convertible, exchangeable and exercisable securities into Common Stock) shall be aggregated
together for the purpose of determining the availability of any right under this Agreement.

     Section 2.16 Further Assurances. The Company and the Holders each agree to take such actions
and execute and deliver such other documents or agreements as may be reasonably necessary or
desirable for the implementation of this Agreement and the consummation of the transactions
contemplated hereby.

[SIGNATURE PAGES FOLLOW]

22

 

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

	 	 	 	 	 
	COMPANY:

	MAGNACHIP SEMICONDUCTOR LLC
	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	By: 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

	 	 	 	 	 
	SECURITYHOLDERS:

	 	AVENUE INTERNATIONAL MASTER, L.P.
	 	 
	 	 	By: Avenue International Master GenPar, Ltd., its General Partner
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	AVENUE INVESTMENTS, L.P.	 	 
	 	 	By: Avenue Partners, LLC, its General Partner
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	AVENUE SPECIAL SITUATIONS FUND V, L.P.
	 	 	By: Avenue Capital Partners V, LLC, its General Partner
	 	 	By: GL Partners V, LLC, its Managing Member
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	AVENUE SPECIAL SITUATIONS FUND IV, L.P.
	 	 	By: Avenue Capital Partners IV, LLC, General Partner
	 	 	By: GL Partners IV, LLC, its Managing Member
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	AVENUE-CDP GLOBAL OPPORTUNITIES FUND, L.P.
	 	 	By: Avenue Global Opportunities Fund GenPar, LLC, its General

Partner
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:

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