Document:

Exhibit 10.1

 

THE NEW YORK TIMES COMPANY

NON-EMPLOYEE DIRECTORS DEFERRAL PLAN

AS AMENDED THROUGH FEBRUARY 17, 2005

 

ARTICLE 1

 

NAME AND PURPOSE

 

The New York Times
Company (the “Company”) hereby establishes The New York Times Company
Non-Employee Directors Deferral Plan (the “Plan”). The purpose of the Plan is
to provide a means for (i) the elective deferral of the payment of compensation
payable to non-employee directors of the Company and (ii) the payment of a
portion of compensation payable to non-employee directors of the Company in the
form of deferred compensation.

 

ARTICLE 2

 

EFFECTIVE DATE

 

The Plan is effective as
of September 17, 1997 (the “Effective Date”).  The terms of the Plan, as amended through February 17,
2005, apply to all deferred amounts whether made before or after February 17,
2005.

 

ARTICLE 3

 

PARTICIPATION

 

Each member of the Board
of Directors of the Company (the “Board”) who is not an employee of the Company
or any subsidiary of the Company may participate in the Plan (each a “Non-Employee
Director”).

 

ARTICLE 4

 

DEFERRAL ELECTIONS

 

Pursuant to the terms of
the Plan, a Non-Employee Director may make an election to defer a percentage of
(i) the annual retainer fee payable in respect of the Non-Employee Director’s
service on the Board and (ii) the Board meeting fees and committee meeting fees
payable in respect of the Non-Employee Director’s attendance at such meetings
(collectively, “Compensation”). A Non-Employee Director’s deferral election may
apply to one or both of the foregoing categories of Compensation and may range
from 10% to 100% of such Compensation, in 10% gradations, as elected by the
Non-Employee Director. Each initial deferral election and each change to an
existing deferral election shall be made by the submission of an Election
Form.  The Election Form shall
include:  (x) the amount of the deferral,
(y) the form of the deferral (cash or stock), and (z) the form of the
distribution (lump-sum or installment) for the

 

 

deferral.  Each initial deferral election and each change
to an existing deferral election shall be made by the submission of an Election
Form as follows:

 

(a)        Prior to December 31st
each year, each Non-Employee Director may submit an Election Form which will be
given effect with respect to Compensation earned by the Non-Employee Director
for the subsequent calendar year.

 

(b)       Each Non-Employee Director initially elected or
appointed to the Board on or after the December 31  of the previous calendar year may submit an
Election Form no later than thirty (30) calendar days following the
Non-Employee Director’s election or appointment, which Election Form will be
given effect with respect to Compensation earned by the Non-Employee Director
after the submission of the Election Form.

 

(c)        At any time
after the election periods described in subparagraphs (a) and (b) above, a
Non-Employee Director may submit an initial Election Form or a new Election
Form superseding an existing Election Form, in which case such initial or new
Election Form will be given effect with respect to Compensation earned by the
Non-Employee Director for the subsequent calendar year.  Any changes to the form of distribution must
be consistent with the provisions of Article 7.

 

ARTICLE 5

 

BENEFICIARY DESIGNATION

 

Each Non-Employee
Director may, at any time, designate one or more Beneficiaries to receive
amounts credited to the Non-Employee Director’s deferral accounts in the event
of the Non-Employee Director’s death. A Non-Employee Director may make an
initial Beneficiary designation, or change an existing Beneficiary designation,
by completing and signing a Beneficiary Designation Form and submitting it to
the Secretary of the Company. Upon acceptance by the Secretary of the Company
of a Non-Employee Director’s Beneficiary Designation Form, all Beneficiary
designations previously filed shall automatically be canceled.

 

ARTICLE 6

 

MAINTENANCE OF DEFERRED ACCOUNTS/DISCRETIONARY
GRANTS

 

Compensation may be
deferred by a Non-Employee Director under the Plan either in the form of cash
or units of class A common stock of the Company (“Stock”) (but in no event
shall deferrals be made in a combination of cash and Stock). Compensation
deferred by a Non-Employee Director under the Plan shall be credited to record
keeping accounts maintained by the Company in the Non-Employee Director’s name
as follows:

 

(a)          CASH DEFERRALS. Deferrals made in cash shall be
credited to an account (“Cash Deferral Account”) as of the date on which such
Compensation would otherwise have been paid to the Non-Employee Director. All
amounts credited to a Non-Employee Director’s Cash Deferral Account shall
accrue interest from the time such amounts would otherwise have been paid to

 

2

 

the Non-Employee
Director until the date that such amounts cease accruing interest in connection
with a distribution pursuant to Article 7. 
The interest rate shall be reset annually and shall equal the interest
rate payable on one-year U.S. Treasury Bills auctioned in the first auction of
the calendar year; provided  however, if no one-year U.S. Treasury
Bills are being auctioned, such interest rate shall equal the closing yield on
a U.S. Treasury Note with one-year remaining to maturity as of the first
business day of the calendar year. 
Interest in a Cash Deferral Account shall be compounded as of the last
business day of each calendar quarter.

 

(b)         STOCK DEFERRALS. Deferrals made in Stock shall be
initially credited in cash to an account (“Interim Cash Deferral Account”) as
of the date on which such Compensation would otherwise have been paid to the
Non-Employee Director.  All amounts
credited to a Non-Employee Director’s Interim Cash Deferral Account shall
accrue interest from the time such amounts would otherwise have been paid to
the Non-Employee Director until, as the case may be, the date that such amounts
are credited to the Non-Employee Director’s Stock Deferral Account, as provided
in this paragraph, or the date that such amounts cease accruing interest in
connection with a distribution pursuant to Article 7.  Amounts in the Interim Cash Deferral Account,
including interest and Deemed Dividends (as defined below), shall be credited
to an account (the “Stock Deferral Account”) as of the date of the Company’s
Annual Meeting of Stockholders first occurring after the date on which such
amounts were credited to the Interim Cash Deferral Account.  All amounts to be credited to a Non-Employee
Director’s Stock Deferral Account shall be credited using the weighted average
closing price of a share of Stock on the New York Stock Exchange for the 30
trading days prior to the date of credit. 
Dividends with respect to any Stock credited to a Non-Employee Director’s
Stock Deferral Account will be credited as cash on the dividend payment date to
the Interim Cash Deferral Account (“Deemed Dividends”) and shall accrue
interest in the same manner as other amounts credited to such account from such
time until such amounts are credited to the Non-Employee Director’s Stock
Deferred Account pursuant to the terms of this paragraph.  Interest in an Interim Cash Deferral Account
shall be compounded as of the last business day of each calendar quarter.  The interest rate for the purposes of this
paragraph (b) shall be the rate set forth in paragraph (a) above.

 

On the date of the
Company’s Annual Meeting of Stockholders each year, an amount of Stock,
determined in accordance with the next sentence, may (in the discretion of the
Board) be credited to each Non-Employee Director’s Stock Deferral Account (“Discretionary
Grants”).  The amount of Stock, if any,
to be credited shall be equal to the dollar amount, if any, determined by the
Board from time to time for this purpose, divided by the weighted average
closing price of a share of Stock on the New York Stock Exchange for the 30 trading
days prior to the date of such Annual Meeting of Stockholders.

 

ARTICLE 7

 

METHOD OF DISTRIBUTION OF DEFERRALS

 

No distribution of
deferrals may be made except as provided in this Article 7. All
distributions, whether deferrals are made in cash or Stock, shall be made in
cash as provided hereunder.

 

(a)          CASH DEFERRALS AND
INTERIM CASH DEFERRALS. As described in the following

 

3

 

sentence,
the full amount credited to a Non-Employee Director’s Cash Deferral Account and
Interim Cash Deferral Account shall be distributed to the Non-Employee Director
after the cessation of the Non-Employee Director’s service on the Board for any
reason other than death. Such distribution shall (i) be made in the form of a
lump sum cash payment within thirty (30) days following the end of the month in
which the Non-Employee Director ceases service and shall consist of all amounts
credited to such Non-Employee Director’s Cash Deferral Account and Interim Cash
Deferral Account plus interest accrued through the end of the month in which
the Non-Employee Director ceases service or (ii) be made in the form of
substantially equal annual cash installments over a period of up to ten (10)
years, payable as of January 30 of each of the selected number of years
immediately following the Non-Employee Director’s cessation from service, as
designated on the Distribution Election Form submitted by the Non-Employee
Director. Each such cash installment shall consist of all amounts credited to
such Non-Employee Director’s Cash Deferral Account and Interim Cash Deferral
Account, plus interest accrued through the end of the calendar year prior to
the year in which each such cash installment is paid, divided by the remaining
number of years during which the amounts are to be distributed.  If the installment payment method in clause
(ii) above is elected, the Non-Employee Director cannot later elect to receive
a lump sum pursuant to clause (i) above. 
If the Non-Employee Director wishes to change the form of distribution
from lump sum to installment, then (x) a written election to do so must be
made, (y) such election will not take effect if the lump sum otherwise would
have become payable within twelve (12) months of the date of the election, and
(z) if the election does take effect, the payment of such installments may not
commence prior to the fifth anniversary of the date the lump sum otherwise
would have been paid.

 

(b)         STOCK DEFERRALS. As
described in the following sentence, the full amount credited to a Non-Employee
Director’s Stock Deferral Account shall be distributed to the Non-Employee
Director after the cessation of the Non-Employee Director’s service on the
Board for any reason other than death. Such distribution shall (i) be made in
the form of a lump sum cash payment within thirty (30) days following the end
of the month in which the Non-Employee Director ceases service and shall be
calculated by multiplying the number of units of Stock credited to the
Non-Employee Director’s Stock Deferral Account by the closing price of a share
of Stock on the last business day of the month in which the Non-Employee
Director ceases service, or (ii) be made in the form of substantially equal
annual cash installments over a period of up to ten (10) years, payable as of January 30
of each of the selected number of years immediately following the Non-Employee
Director’s cessation from service, as designated on the Distribution Election
Form submitted by the Non-Employee Director. Each such installment shall be calculated
by multiplying the number of units of Stock credited to such Non-Employee
Director’s Stock Deferral Account by the closing price of a share of Stock on
the last business day of the calendar year prior to the year in which each such
installment is paid, and dividing the total thereof by the remaining number of
years during which the amounts are to be distributed. If the installment
payment method in clause (ii) above is elected, the Non-Employee Director
cannot later elect to receive a lump sum pursuant to clause (i) above.  If the Non-Employee Director wishes to change
the form of distribution from lump sum to installment, then (x) a written
election to do so must be made, (y) such election will not take effect if the
lump sum otherwise would have become payable within twelve (12) months of the
date of the election, and (z) if the election does take effect,

 

4

 

the
payment of such installments may not commence prior to the fifth anniversary of
the date the lump sum otherwise would have been paid.

 

(c)          OTHER.  (i) Notwithstanding the foregoing, at the
written request of a Non-Employee Director, the Nominating & Governance
Committee of the Board (in its role as Plan administrator), may in its sole
discretion, accelerate the payment of amounts credited to the Non-Employee
Director’s deferral accounts, upon a showing of unforeseeable emergency by such
Non-Employee Director, taking into account the Non-Employee Director’s other
financial resources. Such distribution shall be made in the form of a lump sum
cash payment and shall not exceed the lesser of (x) the amount necessary to
meet the financial need created by the unforeseeable emergency, plus any taxes
reasonably anticipated as a result of the distribution or (y) all amounts
credited to such Non-Employee Director’s deferral account plus interest accrued
through the end of the month immediately preceding the month in which such
request was made. Amounts distributed shall first be credited against the
Non-Employee Director’s Cash Deferral Account, then against his or her Interim
Cash Deferral Account, and then against his or her Stock Deferral Account
(based on the closing price of a share of Stock on the date the request for
distribution is made).  For these
purposes, “unforeseeable emergency” is a severe financial hardship resulting
from a sudden and unexpected illness or accident of the Non-Employee Director,
the Non-Employee Director’s spouse or the Non-Employee Director’s dependent,
loss of the Non-Employee Director’s property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of one or
more recent events beyond the control of the Non-Employee Director. In any
event, payment may not be made to the extent such emergency is or may be
relieved: (1) through reimbursement or compensation by insurance or otherwise;
or (2) by liquidation of the Non-Employee Director’s assets, to the extent the
liquidation of such assets would not, itself, cause severe financial hardship.
Examples of what are not considered to be unforeseeable emergencies include the
need to pay a child’s tuition expenses or the desire to purchase a home.

 

(ii)          In the event of a
Non-Employee Director’s death either before or after the Non-Employee Director’s
cessation from service on the Board, all amounts then credited to the
Non-Employee Director’s Cash Deferral Account, Interim Cash Deferral Account
and Stock Deferral Account shall be distributed to the Non-Employee Director’s
designated Beneficiaries in the form of a lump sum cash payment within thirty
(30) days after the end of the month in which such death occurred or as soon as
practicable thereafter and shall consist of all amounts credited to such
Non-Employee Director’s deferral accounts plus any dividend equivalents and
interest accrued through the end of the month in which such death occurred.
Stock in a Non-Employee Director’s Stock Deferral Account shall be valued as of
the last business day of the month in which such death occurred. If the
Non-Employee Director has not designated a Beneficiary or the Non-Employee
Director’s designated Beneficiary(ies) do not survive the Non-Employee
Director, the full amount of the Non-Employee Director’s deferral account shall
be paid to the Non-Employee Director’s spouse, or if there is no spouse, to the
Non-Employee Director’s estate.

 

(iii)       If at the time of a
Non-Employee Director’s cessation as a Non-Employee Director from service on
the Board, he or she becomes an employee of the Company, then for purposes

 

5

 

determining
the timing of distributions pursuant to this Article 7, he or she shall
not be treated as having ceased service until such employment terminates (or 6
months thereafter if immediately prior to such termination he or she is a “key
employee” within the meaning of Section 409A(a)(2)(B) of the Internal
Revenue Code of 1986, as amended).

 

ARTICLE 8

 

UNFUNDED STATUS OF THE PLAN

 

A Non-Employee Director
shall not have any interest in any amount credited to his or her deferral
accounts until it is distributed in accordance with the Plan. Distributions
under the Plan shall be made only from the general assets of the Company. All
amounts deferred under the Plan shall remain the sole property of the Company,
subject to the claims of its general creditors and available for its use for
whatever purposes are desired. With respect to amounts deferred, a Non-Employee
Director is merely a general creditor of the Company; and the obligation of the
Company hereunder is purely contractual and shall not be funded or secured in
any way.

 

ARTICLE 9

 

NON-ALIENABILITY AND NON-TRANSFERABILITY

 

The rights of a
Non-Employee Director to the payment of amounts credited to his or her deferral
accounts shall not be assigned, transferred, pledged or encumbered or be
subject in any manner to alienation or anticipation. A Non-Employee Director
may not borrow against amounts credited to the Non-Employee Director’s account
and such amounts shall not be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, change,
garnishment, execution or levy of any kind, whether voluntary or involuntary,
prior to distribution.

 

ARTICLE 10

 

STATEMENT OF ACCOUNT

 

Statements will be sent
to each Non-Employee Director within thirty (30) days after each year’s Annual
Meeting of Stockholders indicating the balance of the Non-Employee Director’s
accounts as of the end of business on the date of the Annual Meeting (giving
effect to the grants and transfers made as of such date).

 

ARTICLE 11

 

ADMINISTRATION

 

Except with respect to
Discretionary Grants, the Plan is intended to be self-effectuating and does not
require the exercise of discretion by the Company.  With respect to the Discretionary Grants, and
otherwise, to the extent necessary, the Nominating & Governance Committee
of the Board shall act as the Plan administrator for purposes of resolving any
ambiguities, claims or disputes

 

6

 

arising with respect to
the Plan or any deferrals under the Plan. 
As such the Nominating & Governance Committee is authorized to make
any rulings and determinations that it deems to be appropriate and consistent
with the terms and intent of the Plan and all such rulings and determinations
shall be final and binding upon all parties for all purposes.  Any member of the Nominating & Governance
Committee making a claim or request to the Nominating & Governance
Committee with respect to his or her rights or interests under the Plan shall
excuse himself or herself from the Nominating & Governance Committee’s
determination with respect to such claim or request.

 

ARTICLE 12

 

AMENDMENT AND TERMINATION

 

The Plan may, at any
time, be amended, modified or terminated by the Board. No amendment,
modification or termination shall, without the consent of a Non-Employee
Director, adversely affect such Non-Employee Director’s rights with respect to
amounts accrued under his or her deferral account.

 

ARTICLE 13

 

NOTICES

 

All notices and forms to
be submitted to the Company hereunder shall be delivered to the attention of
the Secretary of the Company.

 

7Exhibit 10.9

 

ONE BAY PLAZA

BURLINGAME, CALIFORNIA

 

 

OFFICE LEASE AGREEMENT

BETWEEN

CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a Delaware limited partnership

(“LANDLORD”)

AND

Opta Corporation,
a Delaware corporation

(“TENANT”)

 

 

OFFICE LEASE AGREEMENT

 

THIS OFFICE LEASE AGREEMENT
(the “Lease”) is made and entered into as of the 31st day of October, 2004, by and between CA-ONE
BAY PLAZA LIMITED PARTNERSHIP, a Delaware limited partnership (“Landlord”) and Opta Corporation, a Delaware
corporation (“Tenant”).  The following
exhibits and attachments are incorporated into and made a part of the Lease:
Exhibit A (Outline and Location of Premises), Exhibit B (Expenses and
Taxes), Exhibit C (Work Letter), Exhibit C-1 (Depiction of Landlord
Work), Exhibit D (Commencement Letter), Exhibit E (Building Rules and
Regulations), Exhibit F (Additional Provisions), Exhibit G (Parking
Agreement) and Exhibit H (Asbestos Notification).

 

1.               Basic Lease
Information.

 

1.01                                                   “Building”
shall mean the building located at 1350 Old Bayshore Highway, Burlingame,
California, commonly known as One Bay Plaza. 
“Rentable Square Footage of the Building” is deemed to be 176,533 square
feet.

 

1.02                                                   “Premises”
shall mean the area shown on Exhibit A to this Lease.  The Premises is located on the 7th floor and
known as suite no. 740. If the Premises include one or more floors in their
entirety, all corridors and restroom facilities located on such full floor(s)
shall be considered part of the Premises. The “Rentable Square Footage of the
Premises” is deemed to be 3,196 square feet. Landlord and Tenant stipulate and
agree that the Rentable Square Footage of the Building and the Rentable Square
Footage of the Premises are correct.

 

1.03                                                   “Base
Rent”:

 

	
  Period or Months of Term

  	
   

  	
  Annual Rate

  Per Square Foot

  	
   

  	
  Monthly

  Base Rent

  	
   

  
	
  Months 1 – 12

  	
   

  	
  $

  	
  18.00

  	
   

  	
  $

  	
  4,794.00

  	
   

  
								

 

1.04                                                   “Tenant’s
Pro Rata Share”: 1.8104%.

 

1.05                                                   “Base
Year” for Taxes (defined in Exhibit B): 
2005; “Base Year” for Expenses (defined in Exhibit B):  2005. 

 

1.06                                                   “Term”:
A period of 12 months and 0 days. 
Subject to Section 3, the Term shall commence on October 29,
2004 (the “Commencement Date”) and, unless terminated early in accordance with
this Lease, end on October 31, 2005 (the “Termination Date”).

 

1.07                                                   Allowance(s):
None

 

1.08                                                   “Security
Deposit”:  $ 4,794 as more fully described in Section 6.

 

1.09                                                   “Guarantor(s)”:  None

 

1.10                                                   “Broker(s)”:  Jon Mackey of Cornish & Carey.

 

1.11                                                   “Permitted
Use”:  General office use.

 

1.12                                                   “Notice
Address(es)”:

 

	
  Landlord:

  	
   

  	
  Tenant:

  
	
   

  	
   

  	
   

  
	
  CA-One Bay Plaza Limited Partnership

  c/o Equity Office Management, L.L.C.

  950 Tower Lane

  Suite 950

  Foster City, California 94404

  Attention: Property Manager

  	
   

  	
  Opta Corporation

  2402 Michelson Drive

  Suite 220

  Irvine, CA 92612

  

 

A copy of any notices to
Landlord shall be sent to Equity Office, One Market, Spear Street Tower, Suite
600, San Francisco, California 94105, Attn: San Francisco Regional Counsel.

 

1.13                                                   “Business
Day(s)” are Monday through Friday of each week, exclusive of New Year’s Day,
Presidents Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day (“Holidays”).  Landlord may
designate additional Holidays that are commonly recognized by other office
buildings in the area where the Building is located.  “Building Service Hours” are 8:00 a.m. to 6:00
p.m. on Business Days.

 

1

 

1.14                                                   “Landlord
Work” means the work, if any, that Landlord is obligated to perform in the
Premises pursuant to a separate agreement (the “Work Letter”), if any, attached
to this Lease as Exhibit C.

 

1.15                                                   “Property”
means the Building and the parcel(s) of land on which it is located and, at
Landlord’s discretion, the parking facilities and other improvements, if any,
serving the Building and the parcel(s) of land on which they are located.

 

2.               Lease Grant.

 

The Premises are hereby leased
to Tenant from Landlord, together with the right to use any portions of the
Property that are designated by Landlord for the common use of tenants and
others (the “Common Areas”).

 

3.               Adjustment of Commencement
Date; Possession.

 

3.01  If Landlord is required to perform Landlord
Work prior to the Commencement Date: (a) the date set forth in Section 1.06
as the Commencement Date shall instead be defined as the “Target Commencement
Date”; (b) the actual Commencement Date shall be the date on which the
Landlord Work is Substantially Complete (defined below); and (c) the
Termination Date will be the last day of the Term as determined based upon a period of 12 months and 0 days from the
actual Commencement Date.  Landlord’s
failure to Substantially Complete the Landlord Work by the Target Commencement
Date shall not be a default by Landlord or otherwise render Landlord liable for
damages. Promptly after the determination of the Commencement Date, Landlord and
Tenant shall enter into a commencement letter agreement in the form attached as
Exhibit D which commencement letter agreement shall be deemed accepted by
Tenant if not executed and returned to Landlord by Tenant within 30 days after
the date that Landlord delivers the commencement letter agreement to Tenant for
execution.  If the Termination Date does
not fall on the last day of a calendar month, Landlord and Tenant may elect to
adjust the Termination Date to the last day of the calendar month in which Termination
Date occurs by the mutual execution of a commencement letter agreement setting
forth such adjusted date.   The Landlord
Work shall be deemed to be “Substantially Complete” on the date that all
Landlord Work has been performed, other than any details of construction,
mechanical adjustment or any other similar matter, the non-completion of which
does not materially interfere with Tenant’s use of the Premises. If Landlord is
delayed in the performance of the Landlord Work as a result of the acts or
omissions of Tenant, the Tenant Related Parties (defined in Section 13) or
their respective contractors or vendors, including, without limitation, changes
requested by Tenant to approved plans, Tenant’s failure to comply with any of
its obligations under this Lease, or the specification of any materials or
equipment with long lead times (a “Tenant Delay”), the Landlord Work shall be
deemed to be Substantially Complete on the date that Landlord could reasonably
have been expected to Substantially Complete the Landlord Work absent any
Tenant Delay.

 

3.02 Subject to Landlord’s
obligation, if any, to perform Landlord Work, the Premises are accepted by
Tenant in “as is” condition and configuration without any representations or
warranties by Landlord. By taking possession of the Premises, Tenant agrees
that the Premises are in good order and satisfactory condition.  Landlord shall not be liable for a failure to
deliver possession of the Premises or any other space due to the holdover or
unlawful possession of such space by another party, however Landlord shall use
reasonable efforts to obtain possession of the space.  The commencement date for the space, in such
event, shall be postponed until the date Landlord delivers possession of the
Premises to Tenant free from occupancy by any party. If Tenant takes possession
of the Premises before the Commencement Date, such possession shall be subject
to the terms and conditions of this Lease and Tenant shall pay Rent (defined in
Section 4.01) to Landlord for each day of possession before the
Commencement Date.  However, except for
the cost of services requested by Tenant (e.g. freight elevator usage), Tenant
shall not be required to pay Rent for any days of possession before the Commencement
Date during which Tenant, with the approval of Landlord, is in possession of
the Premises for the sole purpose of performing improvements or installing
furniture, equipment or other personal property.

 

4.               Rent.

 

4.01  Tenant shall pay Landlord, without any setoff
or deduction, unless expressly set forth in this Lease, all Base Rent and
Additional Rent due for the Term (collectively referred to as “Rent”). “Additional
Rent” means all sums (exclusive of Base Rent) that Tenant is required to pay
Landlord under this Lease. Tenant shall pay and be liable for all rental, sales
and use taxes (but excluding income taxes), if any, imposed upon or measured by
Rent.  Base Rent and recurring monthly
charges of Additional Rent shall be due and payable in advance on the first day
of each calendar month without notice or demand, provided that the installment
of Base Rent for the first full calendar month of the Term, and the first

 

2

 

monthly installment of Additional Rent for
Expenses and Taxes, shall be payable upon the execution of this Lease by
Tenant.  All other items of Rent shall be
due and payable by Tenant on or before 30 days after billing by Landlord.  Rent shall be made payable to the entity, and
sent to the address, Landlord designates and shall be made by good and
sufficient check or by other means acceptable to Landlord.  Tenant shall pay Landlord an administration
fee equal to 5% of all past due Rent, provided that Tenant shall be entitled to
a grace period of 5 days for the first 2 late payments of Rent in a calendar
year. In addition, past due Rent shall accrue interest at 12% per annum.
Landlord’s acceptance of less than the correct amount of Rent shall be
considered a payment on account of the earliest Rent due. Rent for any partial
month during the Term shall be prorated. No endorsement or statement on a check
or letter accompanying payment shall be considered an accord and
satisfaction.  Tenant’s covenant to pay
Rent is independent of every other covenant in this Lease.

 

4.02  Tenant shall pay Tenant’s Pro Rata Share of
Taxes and Expenses in accordance with Exhibit B of this Lease.

 

5.               Compliance with Laws; Use.

 

The Premises shall be used for
the Permitted Use and for no other use whatsoever. Tenant shall comply with all
statutes, codes, ordinances, orders, rules and regulations of any municipal or
governmental entity whether in effect now or later, including the Americans
with Disabilities Act (“Law(s)”), regarding the operation of Tenant’s business
and the use, condition, configuration and occupancy of the Premises. In
addition, Tenant shall, at its sole cost and expense, promptly comply with any
Laws that relate to the “Base Building” (defined below), but only to the extent
such obligations are triggered by Tenant’s use of the Premises, other than for
general office use, or Alterations or improvements in the Premises performed or
requested by Tenant.  “Base Building”
shall include the structural portions of the Building, the public restrooms and
the Building mechanical, electrical and plumbing systems and equipment located
in the internal core of the Building on the floor or floors on which the
Premises are located. Tenant shall promptly provide Landlord with copies of any
notices it receives regarding an alleged violation of Law.  Tenant shall comply with the rules and
regulations of the Building attached as Exhibit E and such other
reasonable rules and regulations adopted by Landlord from time to time,
including rules and regulations for the performance of Alterations (defined in Section 9).

 

6.                                       Security Deposit.

 

The Security Deposit, if any,
shall be delivered to Landlord upon the execution of this Lease by Tenant and
held by Landlord without liability for interest (unless required by Law) as
security for the performance of Tenant’s obligations.  The Security Deposit is not an advance
payment of Rent or a measure of damages. 
Landlord may use all or a portion of the Security Deposit to satisfy
past due Rent or to cure any Default (defined in Section 18) by
Tenant.  If Landlord uses any portion of
the Security Deposit, Tenant shall, within 5 days after demand, restore the
Security Deposit to its original amount. Landlord shall return any unapplied
portion of the Security Deposit to Tenant within 45 days after the later to
occur of: (a) determination of the final Rent due from Tenant; or
(b) the later to occur of the Termination Date or the date Tenant
surrenders the Premises to Landlord in compliance with Section 25.
Landlord may assign the Security Deposit to a successor or transferee and, following
the assignment, Landlord shall have no further liability for the return of the
Security Deposit. Landlord shall not be required to keep the Security Deposit
separate from its other accounts.  Tenant
hereby waives the provisions of Section 1950.7 of the California Civil
Code, or any similar or successor Laws now or hereinafter in effect.

 

7.                                       Building Services.

 

7.01  Landlord shall furnish Tenant with the
following services: (a) water for use in the Base Building lavatories;
(b) customary heat and air conditioning in season during Building Service
Hours. Tenant shall have the right to receive HVAC service during hours other
than Building Service Hours by paying Landlord’s then standard charge for
additional HVAC service and providing such prior notice as is reasonably
specified by Landlord; (c) standard janitorial service on Business Days;
(d) Elevator service; (e) Electricity in accordance with the terms
and conditions in Section 7.02; and (f) such other services as
Landlord reasonably determines are necessary or appropriate for the Property.

 

7.02  Electricity used by Tenant in the Premises
shall be paid for by Tenant through inclusion in Expenses (except as provided
for excess usage). Without the consent of Landlord, Tenant’s use of electrical
service shall not exceed, either in voltage, rated capacity, use beyond
Building Service Hours or overall load, that which Landlord reasonably deems to
be standard for the Building. Landlord shall have the right to measure
electrical usage by commonly accepted methods. If it is determined that Tenant
is using excess electricity, Tenant shall pay Landlord for the cost of such
excess electrical usage as Additional Rent.

 

3

 

7.03  Landlord’s failure to furnish, or any
interruption, diminishment or termination of services due to the application of
Laws, the failure of any equipment, the performance of repairs, improvements or
alterations, utility interruptions or the occurrence of an event of Force
Majeure (defined in Section 26.03) (collectively a “Service Failure”)
shall not render Landlord liable to Tenant, constitute a constructive eviction
of Tenant, give rise to an abatement of Rent, nor relieve Tenant from the
obligation to fulfill any covenant or agreement. However, if the Premises, or a
material portion of the Premises, are made untenantable for a period in excess
of 3 consecutive Business Days as a result of a Service Failure that is
reasonably within the control of Landlord to correct, then Tenant, as its sole remedy,
shall be entitled to receive an abatement of Rent payable hereunder during the
period beginning on the 4th consecutive Business Day of the Service
Failure and ending on the day the service has been restored.  If the entire Premises have not been rendered
untenantable by the Service Failure, the amount of abatement shall be equitably
prorated.

 

8.                                       Leasehold Improvements.

 

All improvements in and to the
Premises, including any Alterations (collectively, “Leasehold Improvements”)
shall remain upon the Premises at the end of the Term without compensation to
Tenant.  Landlord, however, by written
notice to Tenant at least 30 days prior to the Termination Date, may require
Tenant, at its expense, to remove (a) any Cable (defined in Section 9.01)
installed by or for the benefit of Tenant, and (b) any Landlord Work or
Alterations that, in Landlord’s reasonable judgment, are of a nature that would
require removal and repair costs that are materially in excess of the removal
and repair costs associated with standard office improvements (collectively
referred to as “Required Removables”). 
Required Removables shall include, without limitation, internal
stairways, raised floors, personal baths and showers, vaults, rolling file
systems and structural alterations and modifications. The designated Required
Removables shall be removed by Tenant before the Termination Date. Tenant shall
repair damage caused by the installation or removal of Required
Removables.  If Tenant fails to perform
its obligations in a timely manner, Landlord may perform such work at Tenant’s
expense. Tenant, at the time it requests approval for a proposed Alteration,
may request in writing that Landlord advise Tenant whether the Alteration or
any portion of the Alteration is a Required Removable.  Within 10 days after receipt of Tenant’s
request, Landlord shall advise Tenant in writing as to which portions of the
Alteration are Required Removables.

 

9.                                       Repairs and Alterations.

 

9.01 Tenant shall periodically
inspect the Premises to identify any conditions that are dangerous or in need
of maintenance or repair.  Tenant shall
promptly provide Landlord with notice of any such conditions. Tenant shall, at
its sole cost and expense, perform all maintenance and repairs to the Premises
that are not Landlord’s express responsibility under this Lease, and keep the
Premises in good condition and repair, reasonable wear and tear excepted.
Tenant’s repair and maintenance obligations include, without limitation,
repairs to: (a) floor covering; (b) interior partitions;
(c) doors; (d) the interior side of demising walls;
(e) electronic, phone and data cabling and related equipment that is
installed by or for the exclusive benefit of Tenant (collectively, “Cable”);
(f) supplemental air conditioning units, kitchens, including hot water
heaters, plumbing, and similar facilities exclusively serving Tenant; and
(g) Alterations. To the extent Landlord is not reimbursed by insurance
proceeds, Tenant shall reimburse Landlord for the cost of repairing damage to
the Building caused by the acts of Tenant, Tenant Related Parties and their
respective contractors and vendors. If Tenant fails to make any repairs to the
Premises for more than 15 days after notice from Landlord (although notice
shall not be required in an emergency), Landlord may make the repairs, and
Tenant shall pay the reasonable cost of the repairs, together with an
administrative charge in an amount equal to 10% of the cost of the repairs.

 

9.02 Landlord shall keep and
maintain in good repair and working order and perform maintenance upon the:
(a) structural elements of the Building; (b) mechanical (including
HVAC), electrical, plumbing and fire/life safety systems serving the Building
in general; (c) Common Areas; (d) roof of the Building; (e) exterior
windows of the Building; and (f) elevators serving the Building. Landlord
shall promptly make repairs for which Landlord is responsible.  Tenant hereby waives any and all rights under
and benefits of subsection 1 of Section 1932, and Sections 1941
and 1942 of the California Civil Code, or any similar or successor Laws now or
hereinafter in effect.

 

9.03 Tenant shall not make
alterations, repairs, additions or improvements or install any Cable
(collectively referred to as “Alterations”) without first obtaining the written
consent of Landlord in each instance, which consent shall not be unreasonably
withheld or delayed. However, Landlord’s consent shall not be required for any
Alteration that satisfies all of the following criteria (a “Cosmetic Alteration”):  (a) is of a cosmetic nature such as
painting, wallpapering, hanging pictures and installing carpeting; (b) is
not visible from the exterior of the Premises or Building; (c) will not
affect the Base Building; and (d) does not require work to be performed
inside the walls or above the ceiling of the Premises.  Cosmetic Alterations shall be subject to all
the other provisions of this Section 9.03. 
Prior to starting work, Tenant shall furnish Landlord with plans and
specifications; names of contractors reasonably acceptable to Landlord
(provided that Landlord may designate specific contractors with respect to Base
Building); required permits and approvals; evidence of contractor’s and
subcontractor’s insurance in

 

4

 

amounts reasonably required by Landlord and
naming Landlord as an additional insured; and any security for performance in
amounts reasonably required by Landlord. 
Changes to the plans and specifications must also be submitted to
Landlord for its approval. Alterations shall be constructed in a good and
workmanlike manner using materials of a quality reasonably approved by
Landlord. Tenant shall reimburse Landlord for any sums paid by Landlord for
third party examination of Tenant’s plans for non-Cosmetic Alterations. Upon
completion, Tenant shall furnish “as-built” plans for non-Cosmetic Alterations,
completion affidavits and full and final waivers of lien. Landlord’s approval
of an Alteration shall not be deemed a representation by Landlord that the
Alteration complies with Law.

 

10.                                 Entry by Landlord.

 

Landlord may enter the Premises
to inspect, show or clean the Premises or to perform or facilitate the
performance of repairs, alterations or additions to the Premises or any portion
of the Building.  Except in emergencies
or to provide Building services, Landlord shall provide Tenant with reasonable
prior verbal notice of entry and shall use reasonable efforts to minimize any
interference with Tenant’s use of the Premises. 
If reasonably necessary, Landlord may temporarily close all or a portion
of the Premises to perform repairs, alterations and additions.  However, except in emergencies, Landlord will
not close the Premises if the work can reasonably be completed on weekends and
after Building Service Hours.  Entry by
Landlord shall not constitute a constructive eviction or entitle Tenant to an
abatement or reduction of Rent.

 

11.                                 Assignment and Subletting.

 

11.01  Except in connection with a Permitted
Transfer (defined in Section 11.04), Tenant shall not assign, sublease,
transfer or encumber any interest in this Lease or allow any third party to use
any portion of the Premises (collectively or individually, a “Transfer”)
without the prior written consent of Landlord, which consent shall not be
unreasonably withheld, conditioned or delayed if Landlord does not exercise its
recapture rights under Section 11.02. 
If the entity which controls the voting shares/rights of Tenant changes
at any time, such change of ownership or control shall constitute a Transfer
unless Tenant is an entity whose outstanding stock is listed on a recognized
securities exchange or if at least 80% of its voting stock is owned by another
entity, the voting stock of which is so listed. 
Tenant hereby waives the provisions of Section 1995.310 of the
California Civil Code, or any similar or successor Laws, now or hereinafter in
effect, and all other remedies, including, without limitation, any right at law
or equity to terminate this Lease, on its own behalf and, to the extent
permitted under all applicable Laws, on behalf of the proposed transferee.  Any attempted Transfer in violation of this Section is
voidable by Landlord. In no event shall any Transfer, including a Permitted
Transfer, release or relieve Tenant from any obligation under this Lease.

 

11.02  Tenant
shall provide Landlord with financial statements for the proposed transferee, a
fully executed copy of the proposed assignment, sublease or other Transfer
documentation and such other information as Landlord may reasonably request.
Within 15 Business Days after receipt of the required information and
documentation, Landlord shall either: (a) consent to the Transfer by
execution of a consent agreement in a form reasonably designated by Landlord;
(b) reasonably refuse to consent to the Transfer in writing; or
(c) in the event of an assignment of this Lease or subletting of more than
20% of the Rentable Square Footage of the Premises for more than 50% of the
remaining Term (excluding unexercised options), recapture the portion of the Premises
that Tenant is proposing to Transfer.  If
Landlord exercises its right to recapture, this Lease shall automatically be
amended (or terminated if the entire Premises is being assigned or sublet) to
delete the applicable portion of the Premises effective on the proposed
effective date of the Transfer.  Tenant
shall pay Landlord a review fee of $1,500.00 for Landlord’s review of any
Permitted Transfer or requested Transfer.

 

11.03  Tenant
shall pay Landlord 50% of all rent and other consideration which Tenant
receives as a result of a Transfer that is in excess of the Rent payable to
Landlord for the portion of the Premises and Term covered by the Transfer.  Tenant shall pay Landlord for Landlord’s
share of the excess within 30 days after Tenant’s receipt of the excess.  Tenant may deduct from the excess, on a
straight-line basis, all reasonable and customary expenses directly incurred by
Tenant attributable to the Transfer.  If
Tenant is in Default, Landlord may require that all sublease payments be made
directly to Landlord, in which case Tenant shall receive a credit against Rent
in the amount of Tenant’s share of payments received by Landlord.

 

11.04 Tenant may assign this Lease to a successor to
Tenant by purchase, merger, consolidation or reorganization (an “Ownership
Change”) or assign this Lease or sublet all or a portion of the Premises to an
Affiliate without the consent of Landlord, provided that all of the following
conditions are satisfied (a “Permitted Transfer”):  (a) Tenant is not in Default; (b) in
the event of an Ownership Change, Tenant’s successor shall own substantially
all of the assets of Tenant and have a net worth which is at least equal to
Tenant’s net worth as of the day prior to the proposed Ownership Change;
(c) the Permitted Use does not allow the Premises to be used for retail
purposes; and (d) Tenant shall give Landlord written notice at least 15
Business Days prior to the effective date of the Permitted Transfer. Tenant’s
notice to Landlord shall include information and documentation evidencing the
Permitted Transfer and showing

 

5

 

that each of the above conditions has been satisfied.  If requested by Landlord, Tenant’s successor
shall sign a commercially reasonable form of assumption agreement. “Affiliate”
shall mean an entity controlled by, controlling or under common control with
Tenant.

 

12.                                 Liens.

 

Tenant shall not permit
mechanics’ or other liens to be placed upon the Property, Premises or Tenant’s
leasehold interest in connection with any work or service done or purportedly
done by or for the benefit of Tenant or its transferees.  Tenant shall give Landlord notice at least 15
days prior to the commencement of any work in the Premises to afford Landlord
the opportunity, where applicable, to post and record notices of
non-responsibility. Tenant, within 10 days of notice from Landlord, shall fully
discharge any lien by settlement, by bonding or by insuring over the lien in
the manner prescribed by the applicable lien Law.  If Tenant fails to do so, Landlord may bond,
insure over or otherwise discharge the lien. 
Tenant shall reimburse Landlord for any amount paid by Landlord,
including, without limitation, reasonable attorneys’ fees.

 

13.                                 Indemnity and Waiver of Claims.

 

Tenant hereby waives all claims
against and releases Landlord and its trustees, members, principals,
beneficiaries, partners, officers, directors, employees, Mortgagees (defined in
Section 23) and agents (the “Landlord Related Parties”) from all claims
for any injury to or death of persons, damage to property or business loss in
any manner related to (a) Force Majeure, (b) acts of third parties,
(c) the bursting or leaking of any tank, water closet, drain or other
pipe, (d) the inadequacy or failure of any security services, personnel or
equipment, or (e) any matter not within the reasonable control of
Landlord. Notwithstanding the foregoing, except as provided in Article 15
to the contrary, Tenant shall not be required to waive any claims against
Landlord (other than for loss or damage to Tenant’s business) where such loss
or damage is due to the negligence or willful misconduct of Landlord or any
Landlord Related Parties.  Nothing herein
shall be construed as to diminish the repair and maintenance obligations of
Landlord contained elsewhere in this Lease. 
Except to the extent caused by the negligence or willful misconduct of
Landlord or any Landlord Related Parties, Tenant shall indemnify, defend and
hold Landlord and Landlord Related Parties harmless against and from all
liabilities, obligations, damages, penalties, claims, actions, costs, charges
and expenses, including, without limitation, reasonable attorneys’ fees and
other professional fees (if and to the extent permitted by Law) (collectively
referred to as “Losses”), which may be imposed upon, incurred by or asserted
against Landlord or any of the Landlord Related Parties by any third party and
arising out of or in connection with any damage or injury occurring in the
Premises or any acts or omissions (including violations of Law) of Tenant, the
Tenant Related Parties or any of Tenant’s transferees, contractors or
licensees.  Except to the extent caused
by the negligence or willful misconduct of Tenant or any Tenant Related
Parties, Landlord shall indemnify, defend and hold Tenant, its trustees,
members, principals, beneficiaries, partners, officers, directors, employees
and agents (“Tenant Related Parties”) harmless against and from all Losses
which may be imposed upon, incurred by or asserted against Tenant or any of the
Tenant Related Parties by any third party and arising out of or in connection
with the acts or omissions (including violations of Law) of Landlord or the
Landlord Related Parties.

 

14.                                 Insurance.

 

Tenant shall maintain the
following insurance (“Tenant’s Insurance”): 
(a) Commercial General Liability Insurance applicable to the
Premises and its appurtenances providing, on an occurrence basis, a minimum
combined single limit of $2,000,000.00; (b)  Property/Business Interruption
Insurance written on an All Risk or Special Perils form, with coverage for
broad form water damage including earthquake sprinkler leakage, at replacement
cost value and with a replacement cost endorsement covering all of Tenant’s
business and trade fixtures, equipment, movable partitions, furniture,
merchandise and other personal property within the Premises (“Tenant’s Property”)
and any Leasehold Improvements performed by or for the benefit of Tenant;
(c) Workers’ Compensation Insurance in amounts required by Law; and
(d) Employers Liability Coverage of at least $1,000,000.00 per
occurrence.  Any company writing Tenant’s
Insurance shall have an A.M. Best rating of not less than A-VIII.  All Commercial General Liability Insurance
policies shall name as additional insureds Landlord (or its successors and
assignees), the managing agent for the Building (or any successor), EOP
Operating Limited Partnership, Equity Office Properties Trust and their
respective members, principals, beneficiaries, partners, officers, directors,
employees, and agents, and other designees of Landlord and its successors as
the interest of such designees shall appear. All policies of Tenant’s Insurance
shall contain endorsements that the insurer(s) shall give Landlord and its
designees at least 30 days’ advance written notice of any cancellation,
termination, material change or lapse of insurance. Tenant shall provide
Landlord with a certificate of insurance evidencing Tenant’s Insurance prior to
the earlier to occur of the Commencement Date or the date Tenant is provided
with possession of the Premises, and thereafter as necessary to assure that
Landlord always has current certificates evidencing Tenant’s Insurance. So long
as the same is available at commercially reasonable rates, Landlord shall
maintain so called All Risk property insurance on the Building at replacement
cost value as reasonably estimated by Landlord.

 

6

 

15.                                 Subrogation.

 

Landlord and Tenant hereby
waive and shall cause their respective insurance carriers to waive any and all
rights of recovery, claims, actions or causes of action against the other for
any loss or damage with respect to Tenant’s Property, Leasehold Improvements,
the Building, the Premises, or any contents thereof, including rights, claims,
actions and causes of action based on negligence, which loss or damage is (or
would have been, had the insurance required by this Lease been carried) covered
by insurance.

 

16.                                 Casualty Damage.

 

16.01  If all or
any portion of the Premises becomes untenantable by fire or other casualty to
the Premises (collectively a “Casualty”), Landlord, with reasonable promptness,
shall cause a general contractor selected by Landlord to provide Landlord and
Tenant with a written estimate of the amount of time required using standard
working methods to Substantially Complete the repair and restoration of the
Premises and any Common Areas necessary to provide access to the Premises (“Completion
Estimate”).  If the Completion Estimate
indicates that the Premises or any Common Areas necessary to provide access to
the Premises cannot be made tenantable within 180
days from the date the repair is started, then either party shall have the
right to terminate this Lease upon written notice to the other within 10 days
after receipt of the Completion Estimate. 
Tenant, however, shall not have the right to terminate this Lease if the
Casualty was caused by the negligence or intentional misconduct of Tenant or
any Tenant Related Parties. In addition, Landlord, by notice to Tenant within
90 days after the date of the Casualty, shall have the right to terminate this
Lease if:  (1) the Premises have
been materially damaged and there is less than 2 years of the Term remaining on
the date of the Casualty; (2) any Mortgagee requires that the insurance
proceeds be applied to the payment of the mortgage debt; or (3) a material
uninsured loss to the Building occurs. In addition, Tenant shall have the right
to terminate this Lease if:  (a) a
substantial portion of the Premises has been damaged by fire or other casualty
and such damage cannot reasonably be repaired within 60 days after receipt of
the Completion Estimate; (b) there is less than 1 year of the Term remaining on
the date of such casualty; (c) the casualty was not caused by the negligence or
willful misconduct of Tenant or its agents, employees or contractors; and (d)
Tenant provides Landlord with written notice of its intent to terminate within
30 days after the date of the fire or other casualty.

 

16.02  If this Lease is not terminated, Landlord
shall promptly and diligently, subject to reasonable delays for insurance
adjustment or other matters beyond Landlord’s reasonable control, restore the
Premises and Common Areas. Such restoration shall be to substantially the same
condition that existed prior to the Casualty, except for modifications required
by Law or any other modifications to the Common Areas deemed desirable by
Landlord. Upon notice from Landlord, Tenant shall assign to Landlord (or to any
party designated by Landlord) all property insurance proceeds payable to Tenant
under Tenant’s Insurance with respect to any Leasehold Improvements performed
by or for the benefit of Tenant; provided if the estimated cost to repair such
Leasehold Improvements exceeds the amount of insurance proceeds received by
Landlord from Tenant’s insurance carrier, the excess cost of such repairs shall
be paid by Tenant to Landlord prior to Landlord’s commencement of repairs.  Within 15 days of demand, Tenant shall also
pay Landlord for any additional excess costs that are determined during the
performance of the repairs. Landlord shall not be liable for any inconvenience
to Tenant, or injury to Tenant’s business resulting in any way from the
Casualty or the repair thereof.  Provided
that Tenant is not in Default, during any period of time that all or a material
portion of the Premises is rendered untenantable as a result of a Casualty, the
Rent shall abate for the portion of the Premises that is untenantable and not
used by Tenant.

 

16.03  The provisions of this Lease, including this Section 16,
constitute an express agreement between Landlord and Tenant with respect to any
and all damage to, or destruction of, all or any part of the Premises or the
Property, and any Laws, including, without limitation, Sections 1932(2)
and 1933(4) of the California Civil Code, with respect to any rights or
obligations concerning damage or destruction in the absence of an express
agreement between the parties, and any similar or successor Laws now or
hereinafter in effect, shall have no application to this Lease or any damage or
destruction to all or any part of the Premises or the Property.

 

17.                                 Condemnation.

 

Either party may terminate this
Lease if any material part of the Premises is taken or condemned for any public
or quasi-public use under Law, by eminent domain or private purchase in lieu
thereof (a “Taking”).  Landlord shall
also have the right to terminate this Lease if there is a Taking of any portion
of the Building or Property which would have a material adverse effect on
Landlord’s ability to profitably operate the remainder of the Building.  The terminating party shall provide written
notice of termination to the other party within 45 days after it first receives
notice of the Taking.  The termination
shall be effective on the date the physical taking occurs.  If this Lease is not terminated, Base Rent
and Tenant’s Pro Rata Share shall be appropriately adjusted to account for any
reduction in the square footage of the Building or Premises. All compensation
awarded for a Taking shall be the property of Landlord.  The

 

7

 

right to receive compensation or proceeds are
expressly waived by Tenant, however, Tenant may file a separate claim for
Tenant’s Property and Tenant’s reasonable relocation expenses, provided the
filing of the claim does not diminish the amount of Landlord’s award.  If only a part of the Premises is subject to
a Taking and this Lease is not terminated, Landlord, with reasonable diligence,
will restore the remaining portion of the Premises as nearly as practicable to
the condition immediately prior to the Taking. 
Tenant hereby waives any and all rights it might otherwise have pursuant
to Section 1265.130 of the California Code of Civil Procedure, or any
similar or successor Laws.

 

18.                                 Events of Default.

 

Each of the following
occurrences shall be a “Default”: (a) Tenant’s failure to pay any portion
of Rent when due, if the failure continues for 3 days after written notice to
Tenant (“Monetary Default”); (b) Tenant’s failure (other than a Monetary
Default) to comply with any term, provision, condition or covenant of this
Lease, if the failure is not cured within 10 days after written notice to
Tenant provided, however, if Tenant’s failure to comply cannot reasonably be
cured within 10 days, Tenant shall be allowed additional time (not to exceed 60
days) as is reasonably necessary to cure the failure so long as Tenant begins
the cure within 10 days and diligently pursues the cure to completion; (c) Tenant
or any Guarantor becomes insolvent, makes a transfer in fraud of creditors,
makes an assignment for the benefit of creditors, admits in writing its
inability to pay its debts when due or forfeits or loses its right to conduct
business; (d) the leasehold estate is taken by process or operation of
Law; (e) in the case of any ground floor or retail Tenant, Tenant does not
take possession of or abandons or vacates all or any portion of the Premises;
or (f) Tenant is in default beyond any notice and cure period under any
other lease or agreement with Landlord at the Building or Property. If Landlord
provides Tenant with notice of Tenant’s failure to comply with any specific
provision of this Lease on 3 separate occasions during any 12 month period,
Tenant’s subsequent violation of such provision shall, at Landlord’s option, be
an incurable Default by Tenant. All notices sent under this Section shall
be in satisfaction of, and not in addition to, notice required by Law.

 

19.                                 Remedies.

 

19.01  Upon the
occurrence of any Default under this Lease, whether enumerated in Section 18
or not, Landlord shall have the option to pursue any one or more of the
following remedies without any notice (except as expressly prescribed herein)
or demand whatsoever (and without limiting the generality of the foregoing,
Tenant hereby specifically waives notice and demand for payment of Rent or
other obligations, except for those notices specifically required pursuant to
the terms of Section 18 or this Section 19, and waives any and all
other notices or demand requirements imposed by applicable law):

 

(a)                                  Terminate
this Lease and Tenant’s right to possession of the Premises and recover from
Tenant an award of damages equal to the sum of the following:

 

(i)            The
Worth at the Time of Award of the unpaid Rent which had been earned at the time
of termination;

 

(ii)           The
Worth at the Time of Award of the amount by which the unpaid Rent which would
have been earned after termination until the time of award exceeds the amount
of such Rent loss that Tenant affirmatively proves could have been reasonably
avoided;

 

(iii)          The
Worth at the Time of Award of the amount by which the unpaid Rent for the
balance of the Term after the time of award exceeds the amount of such Rent
loss that Tenant affirmatively proves could be reasonably avoided;

 

(iv)          Any
other amount necessary to compensate Landlord for all the detriment either
proximately caused by Tenant’s failure to perform Tenant’s obligations under
this Lease or which in the ordinary course of things would be likely to result
therefrom; and

 

(v)           All
such other amounts in addition to or in lieu of the foregoing as may be
permitted from time to time under applicable law.

 

The “Worth at the Time of Award”
of the amounts referred to in parts (i) and (ii) above, shall be computed
by allowing interest at the lesser of a per annum rate equal
to: (A) the greatest per annum rate of interest permitted from time
to time under applicable law, or (B) the Prime Rate plus 5%.  For purposes hereof, the “Prime Rate” shall
be the per annum interest rate publicly announced as its prime or base rate by
a federally insured bank selected by Landlord in the State of California.  The “Worth at the Time of Award” of the
amount referred to in part (iii), above, shall be computed by discounting such
amount at the discount rate of the Federal Reserve Bank of San Francisco at the
time of award plus 1%;

 

8

 

(b)                                 Employ
the remedy described in California Civil Code § 1951.4 (Landlord may continue
this Lease in effect after Tenant’s breach and abandonment and recover Rent as
it becomes due, if Tenant has the right to sublet or assign, subject only to
reasonable limitations); or

 

(c)                                  Notwithstanding
Landlord’s exercise of the remedy described in California Civil Code § 1951.4
in respect of an event or events of default, at such time thereafter as
Landlord may elect in writing, to terminate this Lease and Tenant’s right to
possession of the Premises and recover an award of damages as provided above in
Paragraph 19.01(a).

 

19.02  The
subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a
waiver of any preceding breach by Tenant of any term, covenant or condition of
this Lease, other than the failure of Tenant to pay the particular Rent so
accepted, regardless of Landlord’s knowledge of such preceding breach at the
time of acceptance of such Rent.  No
waiver by Landlord of any breach hereof shall be effective unless such waiver
is in writing and signed by Landlord.

 

19.03  TENANT
HEREBY WAIVES ANY AND ALL RIGHTS CONFERRED BY SECTION 3275 OF THE CIVIL
CODE OF CALIFORNIA AND BY SECTIONS 1174 (c) AND 1179 OF THE CODE OF CIVIL
PROCEDURE OF CALIFORNIA AND ANY AND ALL OTHER LAWS AND RULES OF LAW FROM TIME
TO TIME IN EFFECT DURING THE LEASE TERM PROVIDING THAT TENANT SHALL HAVE ANY
RIGHT TO REDEEM, REINSTATE OR RESTORE THIS LEASE FOLLOWING ITS TERMINATION BY
REASON OF TENANT’S BREACH.  TENANT ALSO
HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY
JURY IN ANY LITIGATION ARISING OUT OF OR RELATING TO THIS LEASE.

 

19.04  No right
or remedy herein conferred upon or reserved to Landlord is intended to be
exclusive of any other right or remedy, and each and every right and remedy
shall be cumulative and in addition to any other right or remedy given
hereunder or now or hereafter existing by agreement, applicable law or in
equity.  In addition to other remedies
provided in this Lease, Landlord shall be entitled, to the extent permitted by
applicable law, to injunctive relief, or to a decree compelling performance of
any of the covenants, agreements, conditions or provisions of this Lease, or to
any other remedy allowed to Landlord at law or in equity.  Forbearance by Landlord to enforce one or
more of the remedies herein provided upon an event of default shall not be
deemed or construed to constitute a waiver of such default.

 

19.05  If Tenant
is in Default of any of its non-monetary obligations under the Lease, Landlord
shall have the right to perform such obligations.  Tenant shall reimburse Landlord for the cost
of such performance upon demand together with an administrative charge equal to
10% of the cost of the work performed by Landlord.

 

19.06  This Section 19
shall be enforceable to the maximum extent such enforcement is not prohibited
by applicable law, and the unenforceability of any portion thereof shall not
thereby render unenforceable any other portion.

 

20.                                 Limitation of Liability.

 

NOTWITHSTANDING ANYTHING TO THE
CONTRARY CONTAINED IN THIS LEASE, THE LIABILITY OF LANDLORD (AND OF ANY
SUCCESSOR LANDLORD) SHALL BE LIMITED TO THE LESSER OF (A) THE INTEREST OF
LANDLORD IN THE PROPERTY, OR (B) THE EQUITY INTEREST LANDLORD WOULD HAVE
IN THE PROPERTY IF THE PROPERTY WERE ENCUMBERED BY THIRD PARTY DEBT IN AN AMOUNT
EQUAL TO 70% OF THE VALUE OF THE PROPERTY. 
TENANT SHALL LOOK SOLELY TO LANDLORD’S INTEREST IN THE PROPERTY FOR THE
RECOVERY OF ANY JUDGMENT OR AWARD AGAINST LANDLORD OR ANY LANDLORD RELATED
PARTY. NEITHER LANDLORD NOR ANY LANDLORD RELATED PARTY SHALL BE PERSONALLY
LIABLE FOR ANY JUDGMENT OR DEFICIENCY, AND IN NO EVENT SHALL LANDLORD OR ANY
LANDLORD RELATED PARTY BE LIABLE TO TENANT FOR ANY LOST PROFIT, DAMAGE TO OR
LOSS OF BUSINESS OR ANY FORM OF SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGE.  BEFORE FILING SUIT FOR AN ALLEGED DEFAULT BY
LANDLORD, TENANT SHALL GIVE LANDLORD AND THE MORTGAGEE(S) WHOM TENANT HAS BEEN
NOTIFIED HOLD MORTGAGES (DEFINED IN SECTION 23 BELOW), NOTICE AND
REASONABLE TIME TO CURE THE ALLEGED DEFAULT.

 

21. Relocation.  Intentionally Omitted.

 

9

 

22.                                 Holding Over.

 

If Tenant fails to surrender
all or any part of the Premises at the termination of this Lease, occupancy of
the Premises after termination shall be that of a tenancy at sufferance.  Tenant’s occupancy shall be subject to all
the terms and provisions of this Lease, and Tenant shall pay an amount (on a
per month basis without reduction for partial months during the holdover) equal
to 150% of the sum of the Base Rent and Additional Rent due for the period
immediately preceding the holdover.  No
holdover by Tenant or payment by Tenant after the termination of this Lease
shall be construed to extend the Term or prevent Landlord from immediate recovery
of possession of the Premises by summary proceedings or otherwise. If Landlord
is unable to deliver possession of the Premises to a new tenant or to perform
improvements for a new tenant as a result of Tenant’s holdover and Tenant fails
to vacate the Premises within 15 days after notice from Landlord, Tenant shall
be liable for all damages that Landlord suffers from the holdover.

 

23.                                 Subordination to Mortgages;
Estoppel Certificate.

 

Tenant accepts this Lease
subject and subordinate to any mortgage(s), deed(s) of trust, ground lease(s)
or other lien(s) now or subsequently arising upon the Premises, the Building or
the Property, and to renewals, modifications, refinancings and extensions
thereof (collectively referred to as a “Mortgage”). The party having the
benefit of a Mortgage shall be referred to as a “Mortgagee”. This clause shall
be self-operative, but upon request from a Mortgagee, Tenant shall execute a
commercially reasonable subordination agreement in favor of the Mortgagee. As
an alternative, a Mortgagee shall have the right at any time to subordinate its
Mortgage to this Lease.  Upon request,
Tenant, without charge, shall attorn to any successor to Landlord’s interest in
this Lease.  Landlord and Tenant shall
each, within 10 days after receipt of a written request from the other, execute
and deliver a commercially reasonable estoppel certificate to those parties as
are reasonably requested by the other (including a Mortgagee or prospective
purchaser). Without limitation, such estoppel certificate may include a
certification as to the status of this Lease, the existence of any defaults and
the amount of Rent that is due and payable.

 

24.                                 Notice.

 

All demands, approvals,
consents or notices (collectively referred to as a “notice”) shall be in
writing and delivered by hand or sent by registered or certified mail with
return receipt requested or sent by overnight or same day courier service at
the party’s respective Notice Address(es) set forth in Section 1.  Each notice shall be deemed to have been
received on the earlier to occur of actual delivery or the date on which
delivery is refused, or, if Tenant has vacated the Premises or any other Notice
Address of Tenant without providing a new Notice Address, 3 days after notice
is deposited in the U.S. mail or with a courier service in the manner described
above.  Either party may, at any time,
change its Notice Address (other than to a post office box address) by giving
the other party written notice of the new address.

 

25.                                 Surrender of Premises.

 

At the termination of this
Lease or Tenant’s right of possession, Tenant shall remove Tenant’s Property
from the Premises, and quit and surrender the Premises to Landlord, broom
clean, and in good order, condition and repair, ordinary wear and tear and
damage which Landlord is obligated to repair hereunder excepted. If Tenant
fails to remove any of Tenant’s Property within 2 days after termination of
this Lease or Tenant’s right to possession, Landlord, at Tenant’s sole cost and
expense, shall be entitled (but not obligated) to remove and store Tenant’s
Property.  Landlord shall not be
responsible for the value, preservation or safekeeping of Tenant’s
Property.  Tenant shall pay Landlord,
upon demand, the expenses and storage charges incurred. If Tenant fails to
remove Tenant’s Property from the Premises or storage, within 30 days after
notice, Landlord may deem all or any part of Tenant’s Property to be abandoned
and title to Tenant’s Property shall vest in Landlord.

 

26.                                 Miscellaneous.

 

26.01  This Lease shall be interpreted and enforced
in accordance with the Laws of the State of California and Landlord and Tenant
hereby irrevocably consent to the jurisdiction and proper venue of such state
or commonwealth.  If any term or
provision of this Lease shall to any extent be void or unenforceable, the remainder
of this Lease shall not be affected. If there is more than one Tenant or if
Tenant is comprised of more than one party or entity, the obligations imposed
upon Tenant shall be joint and several obligations of all the parties and
entities, and requests or demands from any one person or entity comprising
Tenant shall be deemed to have been made by all such persons or entities.  Notices to any one person or entity shall be
deemed to have been given to all persons and entities. Tenant represents and
warrants to Landlord that each individual executing this Lease on behalf of
Tenant is authorized to do so on behalf of Tenant and that Tenant is not, and
the entities or individuals constituting Tenant or which may own or control
Tenant or which may be owned or controlled by Tenant are not, among the
individuals or entities identified on any list compiled pursuant to Executive
Order 13224 for the purpose of identifying suspected terrorists.

 

10

 

26.02  If either party institutes a suit against the
other for violation of or to enforce any covenant, term or condition of this
Lease, the prevailing party shall be entitled to all of its costs and expenses,
including, without limitation, reasonable attorneys’ fees.  Landlord and Tenant hereby waive any right to
trial by jury in any proceeding based upon a breach of this Lease.  Either party’s failure to declare a default
immediately upon its occurrence, or delay in taking action for a default, shall
not constitute a waiver of the default, nor shall it constitute an estoppel.

 

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

 

26.04  Landlord shall have the right to transfer and
assign, in whole or in part, all of its rights and obligations under this Lease
and in the Building and Property.  Upon
transfer Landlord shall be released from any further obligations hereunder and
Tenant agrees to look solely to the successor in interest of Landlord for the
performance of such obligations, provided that, any successor pursuant to a
voluntary, third party transfer (but not as part of an involuntary transfer resulting
from a foreclosure or deed in lieu thereof) shall have assumed Landlord’s
obligations under this Lease.

 

26.05  Landlord has delivered a copy of this Lease
to Tenant for Tenant’s review only and the delivery of it does not constitute
an offer to Tenant or an option. Tenant represents that it has dealt directly
with and only with the Broker as a broker in connection with this Lease.  Tenant shall indemnify and hold Landlord and
the Landlord Related Parties harmless from all claims of any other brokers claiming
to have represented Tenant in connection with this Lease. Landlord shall
indemnify and hold Tenant and the Tenant Related Parties harmless from all
claims of any brokers claiming to have represented Landlord in connection with
this Lease.  Equity Office Properties
Management Corp. (“EOPMC”) is an affiliate of Landlord and represents only the
Landlord in this transaction.  Any
assistance rendered by any agent or employee of EOPMC in connection with this
Lease or any subsequent amendment or modification hereto has been or will be
made as an accommodation to Tenant solely in furtherance of consummating the
transaction on behalf of Landlord, and not as agent for Tenant.

 

26.06 Time is of the essence with respect to Tenant’s
exercise of any expansion, renewal or extension rights granted to Tenant. The
expiration of the Term, whether by lapse of time, termination or otherwise,
shall not relieve either party of any obligations which accrued prior to or
which may continue to accrue after the expiration or termination of this Lease.

 

26.07  Tenant may peacefully have, hold and enjoy
the Premises, subject to the terms of this Lease, provided Tenant pays the Rent
and fully performs all of its covenants and agreements.  This covenant shall be binding upon Landlord
and its successors only during its or their respective periods of ownership of
the Building.

 

26.08  This
Lease does not grant any rights to light or air over or about the
Building.  Landlord excepts and reserves
exclusively to itself any and all rights not specifically granted to Tenant
under this Lease. This Lease constitutes the entire agreement between the
parties and supersedes all prior agreements and understandings related to the
Premises, including all lease proposals, letters of intent and other documents.  Neither party is relying upon any warranty,
statement or representation not contained in this Lease.  This Lease may be modified only by a written
agreement signed by an authorized representative of Landlord and Tenant.

 

[SIGNATURES FOLLOW ON NEXT PAGE]

 

11

 

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

 

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  CA-ONE BAY PLAZA LIMITED
  PARTNERSHIP, a

  Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  EOM GP, L.L.C., a Delaware limited
  liability

  company, its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Equity Office Management, L.L.C., a

  Delaware limited liability company, its non-

  member manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Kenneth Young

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Opta Corporation, a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Wang

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  COO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tenant’s Tax ID Number (SSN or FEIN)

  
								

 

12

 

EXHIBIT A

 

OUTLINE AND LOCATION OF PREMISES

 

This Exhibit is attached to and made a part
of the Lease by and between CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a Delaware
limited partnership (“Landlord”) and Opta Corporation, a Delaware corporation (“Tenant”) for space in the Building
located at 1350 Old Bayshore Highway, Burlingame, California, commonly known as
One Bay Plaza.

 

1

 

EXHIBIT B

 

EXPENSES AND TAXES

 

This Exhibit is attached to and made a part
of the Lease by and between CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a Delaware
limited partnership (“Landlord”) and Opta Corporation, a Delaware corporation (“Tenant”)
for space in the Building located at 1350 Old Bayshore Highway, Burlingame,
California, commonly known as One Bay Plaza.

 

1.                                       Payments.

 

1.01  Tenant shall pay Tenant’s Pro Rata Share of
the amount, if any, by which Expenses (defined below) for each calendar year
during the Term exceed Expenses for the Base Year (the “Expense Excess”) and
also the amount, if any, by which Taxes (defined below) for each calendar year
during the Term exceed Taxes for the Base Year (the “Tax Excess”).  If Expenses or Taxes in any calendar year
decrease below the amount of Expenses or Taxes for the Base Year, Tenant’s Pro
Rata Share of Expenses or Taxes, as the case may be, for that calendar year
shall be $0.  Landlord shall provide
Tenant with a good faith estimate of the Expense Excess and of the Tax Excess
for each calendar year during the Term. 
On or before the first day of each month, Tenant shall pay to Landlord a
monthly installment equal to one-twelfth of Tenant’s Pro Rata Share of Landlord’s
estimate of both the Expense Excess and Tax Excess. After its receipt of the
revised estimate, Tenant’s monthly payments shall be based upon the revised
estimate.  If Landlord does not provide
Tenant with an estimate of the Expense Excess or the Tax Excess by January 1
of a calendar year, Tenant shall continue to pay monthly installments based on
the previous year’s estimate(s) until Landlord provides Tenant with the new
estimate.

 

1.02  As soon as is practical following the end of
each calendar year, Landlord shall furnish Tenant with a statement of the
actual Expenses and Expense Excess and the actual Taxes and Tax Excess for the
prior calendar year.  If the estimated
Expense Excess or estimated Tax Excess for the prior calendar year is more than
the actual Expense Excess or actual Tax Excess, as the case may be, for the
prior calendar year, Landlord shall either provide Tenant with a refund or
apply any overpayment by Tenant against Additional Rent due or next becoming
due, provided if the Term expires before the determination of the overpayment,
Landlord shall refund any overpayment to Tenant after first deducting the
amount of Rent due.  If the estimated
Expense Excess or estimated Tax Excess for the prior calendar year is less than
the actual Expense Excess or actual Tax Excess, as the case may be, for such
prior year, Tenant shall pay Landlord, within 30 days after its receipt of the
statement of Expenses or Taxes, any underpayment for the prior calendar year.

 

2.                                       Expenses.

 

2.01  “Expenses” means all costs and expenses
incurred in each calendar year in connection with operating, maintaining,
repairing, and managing the Building and the Property.  Expenses include, without limitation:
(a) all labor and labor related costs, including wages, salaries, bonuses,
taxes, insurance, uniforms, training, retirement plans, pension plans and other
employee benefits; (b) management fees; (c) the cost of equipping,
staffing and operating an on-site and/or off-site management office for the
Building, provided if the management office services one or more other
buildings or properties, the shared costs and expenses of equipping, staffing
and operating such management office(s) shall be equitably prorated and
apportioned between the Building and the other buildings or properties;
(d) accounting costs; (e) the cost of services; (f) rental and
purchase cost of parts, supplies, tools and equipment; (g) insurance
premiums and deductibles; (h) electricity, gas and other utility costs;
and (i) the amortized cost of capital improvements (as distinguished from
replacement parts or components installed in the ordinary course of business)
made subsequent to the Base Year which are: 
(1) performed primarily to reduce current or future operating
expense costs, upgrade Building security or otherwise improve the operating
efficiency of the Property; or (2) required to comply with any Laws that
are enacted, or first interpreted to apply to the Property, after the date of
this Lease.  The cost of capital
improvements shall be amortized by Landlord over the lesser of the Payback
Period (defined below) or the useful life of the capital improvement as
reasonably determined by Landlord. The amortized cost of capital improvements
may, at Landlord’s option, include actual or imputed interest at the rate that
Landlord would reasonably be required to pay to finance the cost of the capital
improvement. “Payback Period” means the reasonably estimated period of time
that it takes for the cost savings resulting from a capital improvement to
equal the total cost of the capital improvement. Landlord, by itself or through
an affiliate, shall have the right to directly perform, provide and be
compensated for any services under this Lease. If Landlord incurs Expenses for
the Building or Property together with one or more other buildings or
properties, whether pursuant to a reciprocal easement agreement, common area
agreement or otherwise, the shared costs and expenses shall be equitably
prorated and apportioned between the Building and Property and the other
buildings or properties.

 

2.02  Expenses
shall not include: the cost of capital improvements (except as set forth
above); depreciation; principal payments of mortgage and other non-operating
debts of Landlord; the cost of

 

1

 

repairs or other work to the extent Landlord is reimbursed by insurance
or condemnation proceeds; costs in connection with leasing space in the
Building, including brokerage commissions; lease concessions, rental abatements
and construction allowances granted to specific tenants; costs incurred in
connection with the sale, financing or refinancing of the Building; fines,
interest and penalties incurred due to the late payment of Taxes or Expenses;
organizational expenses associated with the creation and operation of the
entity which constitutes Landlord; or any penalties or damages that Landlord
pays to Tenant under this Lease or to other tenants in the Building under their
respective leases.

 

2.03 If at any time during a calendar year the
Building is not at least 95% occupied or Landlord is not supplying services to
at least 95% of the total Rentable Square Footage of the Building, Expenses
shall, at Landlord’s option, be determined as if the Building had been 95%
occupied and Landlord had been supplying services to 95% of the Rentable Square
Footage of the Building.  If Expenses for
a calendar year are determined as provided in the prior sentence, Expenses for
the Base Year shall also be determined in such manner. Notwithstanding the
foregoing, Landlord may calculate the extrapolation of Expenses under this Section based
on 100% occupancy and service so long as such percentage is used consistently
for each year of the Term. The extrapolation of Expenses under this Section shall
be performed in accordance with the methodology specified by the Building
Owners and Managers Association.

 

3.  “Taxes” shall mean:  (a) all real property taxes and other
assessments on the Building and/or Property, including, but not limited to,
gross receipts taxes, assessments for special improvement districts and
building improvement districts, governmental charges, fees and assessments for
police, fire, traffic mitigation or other governmental service of purported
benefit to the Property, taxes and assessments levied in substitution or
supplementation in whole or in part of any such taxes and assessments and the
Property’s share of any real estate taxes and assessments under any reciprocal
easement agreement, common area agreement or similar agreement as to the
Property; (b) all personal property taxes for property that is owned by
Landlord and used in connection with the operation, maintenance and repair of
the Property; and (c) all costs and fees incurred in connection with
seeking reductions in any tax liabilities described in (a) and (b), including,
without limitation, any costs incurred by Landlord for compliance, review and
appeal of tax liabilities.  Without
limitation, Taxes shall not include any income, capital levy, transfer, capital
stock, gift, estate or inheritance tax. If a change in Taxes is obtained for
any year of the Term during which Tenant paid Tenant’s Pro Rata Share of any Tax
Excess, then Taxes for that year will be retroactively adjusted and Landlord
shall provide Tenant with a credit, if any, based on the adjustment.  Likewise, if a change is obtained for Taxes
for the Base Year, Taxes for the Base Year shall be restated and the Tax Excess
for all subsequent years shall be recomputed. 
Tenant shall pay Landlord the amount of Tenant’s Pro Rata Share of any
such increase in the Tax Excess within 30 days after Tenant’s receipt of a
statement from Landlord.

 

4. 
Audit Rights.  Tenant, within 365
days after receiving Landlord’s statement of Expenses, may give Landlord
written notice (“Review Notice”) that Tenant intends to review Landlord’s
records of the Expenses for the calendar year to which the statement
applies.  Within a reasonable time after
receipt of the Review Notice, Landlord shall make all pertinent records
available for inspection that are reasonably necessary for Tenant to conduct
its review.  If any records are
maintained at a location other than the management office for the Building,
Tenant may either inspect the records at such other location or pay for the
reasonable cost of copying and shipping the records.  If Tenant retains an agent to review Landlord’s
records, the agent must be with a CPA firm licensed to do business in the state
or commonwealth where the Property is located. 
Tenant shall be solely responsible for all costs, expenses and fees
incurred for the audit.  Within 90 days after
the records are made available to Tenant, Tenant shall have the right to give
Landlord written notice (an “Objection Notice”) stating in reasonable detail
any objection to Landlord’s statement of Expenses for that year. If Tenant
fails to give Landlord an Objection Notice within the 90 day period or fails to
provide Landlord with a Review Notice within the 365 day period described
above, Tenant shall be deemed to have approved Landlord’s statement of Expenses
and shall be barred from raising any claims regarding the Expenses for that
year.  The records obtained by Tenant
shall be treated as confidential.  In no
event shall Tenant be permitted to examine Landlord’s records or to dispute any
statement of Expenses unless Tenant has paid and continues to pay all Rent when
due.

 

2

 

EXHIBIT C

 

WORK LETTER

 

 

This Exhibit is attached to and made a part
of the Lease by and between CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a Delaware
limited partnership (“Landlord”) and Opta Corporation, a Delaware corporation (“Tenant”)
for space in the Building located at 1350 Old Bayshore Highway, Burlingame,
California, commonly known as One Bay Plaza.

 

 

1.                                       Landlord,
at its sole cost and expense (subject to the terms and provisions of Section 2
below) shall perform improvements to the Premises in accordance with the
following work list (the “Work List”) using Building standard methods,
materials and finishes.  The improvements
to be performed in accordance with the Work List are hereinafter referred to as
the “Landlord Work”.  Landlord shall
enter into a direct contract for the Landlord Work with a general contractor
selected by Landlord.  In addition,
Landlord shall have the right to select and/or approve of any subcontractors
used in connection with the Landlord Work.

 

WORK LIST

 

ITEM

 

(A)                              Landlord
shall remove the two phone booths, as shown on Exhibit C-1 attached hereto.

 

(B)                                Landlord
shall remove a wall between a storage room and an office, as shown on Exhibit
C-1 attached hereto.

 

(C)                                Landlord
shall steam clean the carpets within the Premises.

 

2.                                       All
other work and upgrades, subject to Landlord’s approval, shall be at Tenant’s
sole cost and expense, plus any applicable state sales or use tax thereon,
payable upon demand as Additional Rent. 
Tenant shall be responsible for any Tenant Delay in completion of the
Premises resulting from any such other work and upgrades requested or performed
by Tenant.

 

3.                                       Landlord’s
supervision or performance of any work for or on behalf of Tenant shall not be
deemed to be a representation by Landlord that such work complies with
applicable insurance requirements, building codes, ordinances, laws or
regulations or that the improvements constructed will be adequate for Tenant’s
use.

 

4.                                       This
Exhibit shall not be deemed applicable to any additional space added to the
Premises at any time or from time to time, whether by any options under the
Lease or otherwise, or to any portion of the original Premises or any additions
to the Premises in the event of a renewal or extension of the original Term of
the Lease, whether by any options under the Lease or otherwise, unless
expressly so provided in the Lease or any amendment or supplement to the Lease.

 

1

 

EXHIBIT C-1

 

DEPICTION OF LANDLORD WORK

 

 

This Exhibit is attached to and made a part
of the Lease by and between CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a Delaware
limited partnership (“Landlord”) and Opta Corporation, a Delaware corporation (“Tenant”) for space in the Building
located at 1350 Old Bayshore Highway, Burlingame, California, commonly known as
One Bay Plaza.

 

1

 

EXHIBIT D

COMMENCEMENT LETTER

(EXAMPLE)

 

This Exhibit is attached to and made a part
of the Lease by and between CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a Delaware
limited partnership (“Landlord”) and Opta Corporation, a Delaware
corporation. (“Tenant”) for
space in the Building located at 1350 Old Bayshore Highway, Burlingame,
California, commonly known as One Bay Plaza.

 

	
  Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Tenant

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Re:          Commencement Letter with respect to
that certain Lease dated as of the          
day of                   ,
           , by and
between                                                       ,
as Landlord, and                                                       ,
as Tenant, for                   
rentable square feet on the                
floor of the Building located at                                                            .

 

Dear                              :

 

In accordance with the terms
and conditions of the above referenced Lease, Tenant accepts possession of the
Premises and agrees:

 

1.                                       The
Commencement Date of the Lease is                                                       ;

 

2.                                       The
Termination Date of the Lease is                                                             .

 

Please acknowledge your
acceptance of possession and agreement to the terms set forth above by signing
all 3 counterparts of this Commencement Letter in the space provided and
returning 2 fully executed counterparts to my attention. This Commencement
Letter shall be deemed accepted by Tenant if not executed and returned to
Landlord by Tenant within 30 days after the date that Landlord delivers this
Commencement Letter to Tenant for execution.

 

	
  Sincerely,

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Agreed and Accepted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  
	
  Tenant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
						

 

1

 

EXHIBIT E

 

BUILDING RULES AND REGULATIONS

 

This Exhibit is attached to and made a part
of the Lease by and between CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a Delaware
limited partnership (“Landlord”) and Opta Corporation, a Delaware corporation (“Tenant”)
for space in the Building located at 1350 Old Bayshore Highway, Burlingame,
California, commonly known as One Bay Plaza.

 

The following rules and
regulations shall apply, where applicable, to the Premises, the Building, the
parking facilities (if any), the Property and the appurtenances.  In the event of a conflict between the
following rules and regulations and the remainder of the terms of the Lease,
the remainder of the terms of the Lease shall control.  Capitalized terms have the same meaning as
defined in the Lease.

 

1.                                       Sidewalks,
doorways, vestibules, halls, stairways and other similar areas shall not be
obstructed by Tenant or used by Tenant for any purpose other than ingress and
egress to and from the Premises.  No
rubbish, litter, trash, or material shall be placed, emptied, or thrown in
those areas.  At no time shall Tenant
permit Tenant’s employees to loiter in Common Areas or elsewhere about the
Building or Property.

 

2.                                       Plumbing
fixtures and appliances shall be used only for the purposes for which designed
and no sweepings, rubbish, rags or other unsuitable material shall be thrown or
placed in the fixtures or appliances. 
Damage resulting to fixtures or appliances by Tenant, its agents,
employees or invitees shall be paid for by Tenant and Landlord shall not be
responsible for the damage.

 

3.                                       No
signs, advertisements or notices shall be painted or affixed to windows, doors
or other parts of the Building, except those of such color, size, style and in
such places as are first approved in writing by Landlord.  All tenant identification and suite numbers
at the entrance to the Premises shall be installed by Landlord, at Tenant’s
cost and expense, using the standard graphics for the Building. Except in
connection with the hanging of lightweight pictures and wall decorations, no
nails, hooks or screws shall be inserted into any part of the Premises or Building
except by the Building maintenance personnel without Landlord’s prior approval,
which approval shall not be unreasonably withheld.

 

4.                                       Landlord
may provide and maintain in the first floor (main lobby) of the Building an
alphabetical directory board or other directory device listing tenants and no
other directory shall be permitted unless previously consented to by Landlord
in writing.

 

5.                                       Tenant
shall not place any lock(s) on any door in the Premises or Building without
Landlord’s prior written consent, which consent shall not be unreasonably
withheld, and Landlord shall have the right at all times to retain and use keys
or other access codes or devices to all locks within and into the
Premises.  A reasonable number of keys to
the locks on the entry doors in the Premises shall be furnished by Landlord to
Tenant at Tenant’s cost and Tenant shall not make any duplicate keys.  All keys shall be returned to Landlord at the
expiration or early termination of the Lease.

 

6.                                       All
contractors, contractor’s representatives and installation technicians
performing work in the Building shall be subject to Landlord’s prior approval,
which approval shall not be unreasonably withheld, and shall be required to
comply with Landlord’s standard rules, regulations, policies and procedures,
which may be revised from time to time.

 

7.                                       Movement
in or out of the Building of furniture or office equipment, or dispatch or
receipt by Tenant of merchandise or materials requiring the use of elevators,
stairways, lobby areas or loading dock areas, shall be restricted to hours
reasonably designated by Landlord. 
Tenant shall obtain Landlord’s prior approval by providing a detailed
listing of the activity, which approval shall not be unreasonably
withheld.  If approved by Landlord, the
activity shall be under the supervision of Landlord and performed in the manner
required by Landlord.  Tenant shall
assume all risk for damage to articles moved and injury to any persons
resulting from the activity.  If
equipment, property, or personnel of Landlord or of any other party is damaged
or injured as a result of or in connection with the activity, Tenant shall be
solely liable for any resulting damage, loss or injury.

 

8.                                       Landlord
shall have the right to approve the weight, size, or location of heavy
equipment or articles in and about the Premises, which approval shall not be
unreasonably withheld.  Damage to the
Building by the installation, maintenance, operation, existence or removal of
Tenant’s Property shall be repaired at Tenant’s sole expense.

 

9.                                       Corridor
doors, when not in use, shall be kept closed.

 

1

 

10.           Tenant
shall not:  (1) make or permit any
improper, objectionable or unpleasant noises or odors in the Building, or
otherwise interfere in any way with other tenants or persons having business
with them; (2) solicit business or distribute or cause to be distributed,
in any portion of the Building, handbills, promotional materials or other
advertising; or (3) conduct or permit other activities in the Building
that might, in Landlord’s sole opinion, constitute a nuisance.

 

11.           No
animals, except those assisting handicapped persons, shall be brought into the
Building or kept in or about the Premises.

 

12.           No
inflammable, explosive or dangerous fluids or substances shall be used or kept
by Tenant in the Premises, Building or about the Property, except for those
substances as are typically found in similar premises used for general office
purposes and are being used by Tenant in a safe manner and in accordance with
all applicable Laws.  Tenant shall not,
without Landlord’s prior written consent, use, store, install, spill, remove,
release or dispose of, within or about the Premises or any other portion of the
Property, any asbestos-containing materials or any solid, liquid or gaseous
material now or subsequently considered toxic or hazardous under the provisions
of 42 U.S.C. Section 9601 et seq. or any other applicable environmental
Law which may now or later be in effect. 
Tenant shall comply with all Laws pertaining to and governing the use of
these materials by Tenant and shall remain solely liable for the costs of
abatement and removal.

 

13.           Tenant
shall not use or occupy the Premises in any manner or for any purpose which
might injure the reputation or impair the present or future value of the
Premises or the Building. Tenant shall not use, or permit any part of the
Premises to be used for lodging, sleeping or for any illegal purpose.

 

14.           Tenant
shall not take any action which would violate Landlord’s labor contracts or
which would cause a work stoppage, picketing, labor disruption or dispute or
interfere with Landlord’s or any other tenant’s or occupant’s business or with
the rights and privileges of any person lawfully in the Building (“Labor Disruption”).  Tenant shall take the actions necessary to
resolve the Labor Disruption, and shall have pickets removed and, at the
request of Landlord, immediately terminate any work in the Premises that gave
rise to the Labor Disruption, until Landlord gives its written consent for the
work to resume.  Tenant shall have no
claim for damages against Landlord or any of the Landlord Related Parties nor
shall the Commencement Date of the Term be extended as a result of the above
actions.

 

15.           Tenant
shall not install, operate or maintain in the Premises or in any other area of
the Building, electrical equipment that would overload the electrical system
beyond its capacity for proper, efficient and safe operation as determined
solely by Landlord.  Tenant shall not
furnish cooling or heating to the Premises, including, without limitation, the
use of electric or gas heating devices, without Landlord’s prior written
consent.  Tenant shall not use more than
its proportionate share of telephone lines and other telecommunication
facilities available to service the Building.

 

16.           Tenant
shall not operate or permit to be operated a coin or token operated vending
machine or similar device (including, without limitation, telephones, lockers,
toilets, scales, amusement devices and machines for sale of beverages, foods,
candy, cigarettes and other goods), except for machines for the exclusive use
of Tenant’s employees and invitees.

 

17.           Bicycles
and other vehicles are not permitted inside the Building or on the walkways
outside the Building, except in areas designated by Landlord.

 

18.           Landlord
may from time to time adopt systems and procedures for the security and safety
of the Building and the Property, its occupants, entry, use and contents.  Tenant, its agents, employees, contractors,
guests and invitees shall comply with Landlord’s systems and procedures.

 

19.           Landlord
shall have the right to prohibit the use of the name of the Building or any
other publicity by Tenant that in Landlord’s sole opinion may impair the
reputation of the Building or its desirability. 
Upon written notice from Landlord, Tenant shall refrain from and
discontinue such publicity immediately.

 

20.           Neither
Tenant nor its agents, employees, contractors, guests or invitees shall smoke
or permit smoking in the Common Areas, unless a portion of the Common Areas
have been declared a designated smoking area by Landlord, nor shall the above
parties allow smoke from the Premises to emanate into the Common Areas or any
other part of the Building.  Landlord
shall have the right to designate the Building (including the Premises) as a
non-smoking building.

 

21.           Landlord
shall have the right to designate and approve standard window coverings for the
Premises and to establish rules to assure that the Building presents a uniform
exterior

 

2

 

appearance.  Tenant shall ensure, to the extent reasonably
practicable, that window coverings are closed on windows in the Premises while
they are exposed to the direct rays of the sun.

 

22.           Deliveries
to and from the Premises shall be made only at the times in the areas and
through the entrances and exits reasonably designated by Landlord.  Tenant shall not make deliveries to or from
the Premises in a manner that might interfere with the use by any other tenant
of its premises or of the Common Areas, any pedestrian use, or any use which is
inconsistent with good business practice.

 

23.           The
work of cleaning personnel shall not be hindered by Tenant after 5:30 P.M., and
cleaning work may be done at any time when the offices are vacant. Windows,
doors and fixtures may be cleaned at any time. 
Tenant shall provide adequate waste and rubbish receptacles to prevent
unreasonable hardship to the cleaning service.

 

3

 

EXHIBIT F

 

ADDITIONAL PROVISIONS

 

This Exhibit is attached to and made a part
of the Lease by and between CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a Delaware
limited partnership (“Landlord”) and Opta Corporation, a Delaware corporation (“Tenant”)
for space in the Building located at 1350 Old Bayshore Highway, Burlingame,
California, commonly known as One Bay Plaza.

 

1.                                       Asbestos
Notification.  Tenant acknowledges
that Tenant has received the asbestos notification letter attached to this Lease
as Exhibit H hereto, disclosing the existence of asbestos in the
Building.  As part of Tenant’s
obligations under this Lease, Tenant agrees to comply with the California “Connelly
Act” and other applicable Laws, including providing copies of Landlord’s asbestos
notification letter to all of Tenant’s “employees” and “owners”, as those terms
are defined in the Connelly Act and other applicable Laws.

 

2.                                       Renewal
Option.

 

A.                                   Grant
of Option; Conditions.  Tenant shall
have the right to extend the Term (the “Renewal Option”) for one additional
period of 1 year commencing on the day following the Termination Date of the
initial Term and ending on the 1st anniversary of the Termination Date (the “Renewal
Term”), if:

 

1.                                       Landlord
receives notice of exercise (“Initial Renewal Notice”) not less than 94 full
calendar months prior to the expiration of the initial Term and not more than 126
full calendar months prior to the expiration of the initial Term; and

 

2.                                       Tenant
is not in default under the Lease beyond any applicable cure periods at the
time that Tenant delivers its Initial Renewal Notice or at the time Tenant
delivers its Binding Notice (as defined below); and

 

3.                                       No
part of the Premises is sublet (other than pursuant to a Permitted Transfer, as
defined in Section 11 of the Lease) at the time that Tenant delivers its
Initial Renewal Notice or at the time Tenant delivers its Binding Notice; and

 

4.                                       The
Lease has not been assigned (other than pursuant to a Permitted Transfer, as
defined in Section 11 of the Lease) prior to the date that Tenant delivers
its Initial Renewal Notice or prior to the date Tenant delivers its Binding
Notice.

 

B.                                     Terms
Applicable to Premises During Renewal Term.

 

1.             The
initial Base Rent rate per rentable square foot for the Premises during the
Renewal Term shall equal the Prevailing Market (hereinafter defined) rate per
rentable square foot for the Premises. 
Base Rent during the Renewal Term shall increase, if at all, in
accordance with the increases assumed in the determination of Prevailing Market
rate.  Base Rent attributable to the
Premises shall be payable in monthly installments in accordance with the terms
and conditions of Section 4 of the Lease.

 

2.             Tenant
shall pay Additional Rent (i.e. Taxes and Expenses) for the Premises during the
Renewal Term in accordance with Section 4 of the Lease, and the manner and
method in which Tenant reimburses Landlord for Tenant’s share of Taxes and
Expenses and the Base Year, if any, applicable to such matter, shall be some of
the factors considered in determining the Prevailing Market rate for the
Renewal Term.

 

C.                                     Procedure
for Determining Prevailing Market. 
Within 30 days after receipt of Tenant’s Initial Renewal Notice,
Landlord shall advise Tenant of the applicable Base Rent rate for the Premises
for the Renewal Term.  Tenant, within 15
days after the date on which Landlord advises Tenant of the applicable Base
Rent rate for the Renewal Term, shall either (i) give Landlord final
binding written notice (“Binding Notice”) of Tenant’s exercise of its Renewal
Option, or (ii) if Tenant disagrees with Landlord’s determination, provide
Landlord with written notice of rejection (the “Rejection Notice”).  If Tenant fails to provide Landlord with
either a Binding Notice or Rejection Notice within such 15 day period, Tenant’s
Renewal Option shall be null and void and of no further force and effect.  If Tenant provides Landlord with a Binding
Notice, Landlord and Tenant shall enter into the Renewal Amendment (as defined
below) upon the terms and conditions set forth herein.

 

1

 

If Tenant provides Landlord
with a Rejection Notice, Landlord and Tenant shall work together in good faith
to agree upon the Prevailing Market rate for the Premises during the Renewal Term.  When Landlord and Tenant have agreed upon the
Prevailing Market rate for the Premises, such agreement shall be reflected in a
written agreement between Landlord and Tenant, whether in a letter or
otherwise, and Landlord and Tenant shall enter into the Renewal Amendment in
accordance with the terms and conditions hereof.  Notwithstanding the foregoing, if Landlord
and Tenant are unable to agree upon the Prevailing Market rate for the Premises
within 30 days after the date Tenant provides Landlord with the Rejection
Notice, Tenant’s Renewal Option shall be deemed to be null and void and of no
force and effect.

 

D.                                    Renewal
Amendment.  If Tenant is entitled to
and properly exercises its Renewal Option, Landlord shall prepare an amendment
(the “Renewal Amendment”) to reflect changes in the Base Rent, Term,
Termination Date and other appropriate terms. 
The Renewal Amendment shall be sent to Tenant within a reasonable time
after Landlord’s receipt of the Binding Notice or other written agreement by
Landlord and Tenant regarding the Prevailing Market rate, and Tenant shall
execute and return the Renewal Amendment to Landlord within 15 days after
Tenant’s receipt of same, but, upon final determination of the Prevailing
Market rate applicable during the Renewal Term as described herein, an
otherwise valid exercise of the Renewal Option shall be fully effective whether
or not the Renewal Amendment is executed.

 

E.                                      Definition
of Prevailing Market.  For purposes
of this Renewal Option, “Prevailing Market” shall mean the arms length fair
market annual rental rate per rentable square foot under renewal leases and
amendments entered into on or about the date on which the Prevailing Market is
being determined hereunder for space comparable to the Premises in the Building
and office buildings comparable to the Building in the Burlingame, California
area.  The determination of Prevailing
Market shall take into account any material economic differences between the
terms of this Lease and any comparison lease or amendment, such as rent
abatements, construction costs and other concessions and the manner, if any, in
which the landlord under any such lease is reimbursed for operating expenses
and taxes.  The determination of
Prevailing Market shall also take into consideration any reasonably anticipated
changes in the Prevailing Market rate from the time such Prevailing Market rate
is being determined and the time such Prevailing Market rate will become
effective under this Lease.

 

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

 

3.                                       Roof
Space For Dish/Antenna.

 

A.                                   Tenant
shall have the right, in consideration for payments of $50.00 per month (the “Dish/Antenna
Payments”), to lease space on the roof of the Building for the purpose of
installing (in accordance with Section 9.03 of the Lease), operating and
maintaining a            
inch (          )
dish/antenna or other communication device approved by the Landlord (the “Dish/Antenna”).  The Dish/Antenna Payments shall constitute
Additional Rent under the terms of the Lease and Tenant shall be required to
make these payments in strict compliance with the terms of Section 4 of
the Lease.  The exact location of the
space on the roof to be leased by Tenant shall be designated by Landlord and
shall not exceed         (       )
square feet (the “Roof Space”).  Landlord
reserves the right to relocate the Roof Space as reasonably necessary during
the Term.  Landlord’s designation shall
take into account Tenant’s use of the Dish/Antenna.  Notwithstanding the foregoing, Tenant’s right
to install the Dish/Antenna shall be subject to the approval rights of Landlord
and Landlord’s architect and/or engineer with respect to the plans and
specifications of the Dish/Antenna, the manner in which the Dish/Antenna is
attached to the roof of the Building and the manner in which any cables are run
to and from the Dish/Antenna. The Dish/Antenna must be tagged with weatherproof
labels showing manufacturer, model, frequency range, and name of Tenant.  In addition, the cable between the Dish/Antenna
and Tenant’s suite must be tagged in the telecom closet on each floor with a
label showing Tenant’s name, phone number and suite number.  The precise specifications and a general
description of the Dish/Antenna along with all documents Landlord reasonably
requires to review the installation of the Dish/Antenna (the “Plans and
Specifications”) shall be submitted to Landlord for Landlord’s written approval
no later than 20 days before Tenant commences to install the Dish/Antenna.
Tenant shall be solely responsible for obtaining all necessary governmental and
regulatory approvals and for the cost of installing, operating, maintaining and
removing the Dish/Antenna.  Tenant shall
notify Landlord upon completion of the installation of the

 

 

2

 

Dish/Antenna.  If Landlord determines that the Dish/Antenna
equipment does not comply with the approved Plans and Specifications, that the
Building has been damaged during installation of the Dish/Antenna or that the
installation was defective, Landlord shall notify Tenant of any noncompliance
or detected problems and Tenant immediately shall cure the defects.  If the Tenant fails to immediately cure the
defects, Tenant shall pay to Landlord upon demand the cost, as reasonably
determined by Landlord, of correcting any defects and repairing any damage to
the Building caused by such installation. 
If at any time Landlord, in its sole discretion,  deems it necessary, Tenant shall provide and
install, at Tenant’s sole cost and expense, appropriate aesthetic screening,
reasonably satisfactory to Landlord, for the Dish/Antenna (the “Aesthetic
Screening”).

 

B.                                     Landlord
agrees that Tenant, upon reasonable prior written notice to Landlord, shall
have access to the roof of the Building and the Roof Space for the purpose of
installing, maintaining, repairing and removing the Dish/Antenna, the
appurtenances and the Aesthetic Screening, if any, all of which shall be
performed by Tenant or Tenant’s authorized representative or contractors, which
shall be approved by Landlord, at Tenant’s sole cost and  risk. It is agreed, however, that only
authorized engineers, employees or properly authorized contractors of Tenant,
FCC (defined below) inspectors, or persons under their direct supervision will
be permitted to have access to the roof of the Building and the Roof
Space.  Tenant further agrees to exercise
firm control over the people requiring access to the roof of the Building and
the Roof Space in order to keep to a minimum the number of people having access
to the roof of the Building and the Roof Space and the frequency of their
visits.

 

C.                                     It
is further understood and agreed that the installation, maintenance, operation
and removal of the Dish/Antenna, the appurtenances and the Aesthetic Screening,
if any, is not permitted to damage the Building or the roof thereof, or
interfere with the use of the Building and roof by Landlord.  Tenant agrees to be responsible for any
damage caused to the roof or any other part of the Building, which may be caused
by Tenant or any of its agents or representatives.

 

D.                                    Tenant
agrees to install only equipment of types and frequencies which will not cause
unreasonable interference to Landlord or existing tenants of the Building.  In the event Tenant’s equipment causes such
interference, Tenant will change the frequency on which it transmits and/or
receives and take any other steps necessary to eliminate the interference.  If said interference cannot be eliminated
within a reasonable period of time, in the judgment of Landlord, then Tenant
agrees to remove the Dish/Antenna from the Roof Space.

 

E.                                      Tenant
shall, at its sole cost and expense, and at its sole risk, install, operate and
maintain the Dish/Antenna in a good and workmanlike manner, and in compliance
with all Building, electric, communication, and safety codes, ordinances,
standards, regulations and requirements, now in effect or hereafter
promulgated, of the Federal Government, including, without limitation, the
Federal Communications Commission (the “FCC”), the Federal Aviation
Administration (“FAA”) or any successor agency of either the FCC or FAA having
jurisdiction over radio or telecommunications, and of the state, city and
county in which the Building is located. 
Under this Lease, the Landlord and its agents assume no responsibility
for the licensing, operation and/or maintenance of Tenant’s equipment.  Tenant has the responsibility of carrying out
the terms of its FCC license in all respects. 
The Dish/Antenna shall be connected to Landlord’s power supply in strict
compliance with all applicable Building, electrical, fire and safety
codes.  Neither Landlord nor its agents
shall be liable to Tenant for any stoppages or shortages of electrical power
furnished to the Dish/Antenna or the Roof Space because of any act, omission or
requirement of the public utility serving the Building, or the act or omission
of any other tenant, invitee or licensee or their respective agents, employees
or contractors, or for any other cause beyond the reasonable control of Landlord,
and Tenant shall not be entitled to any rental abatement for any such stoppage
or shortage of electrical power.  Neither
Landlord nor its agents shall have any responsibility or liability for the
conduct or safety of any of Tenant’s representatives, repair, maintenance and
engineering personnel while in or on any part of the Building or the Roof
Space.

 

F.                                      The
Dish/Antenna, the appurtenances and the Aesthetic Screening, if any, shall
remain the personal property of Tenant, and shall be removed by Tenant at its
own expense at the expiration or earlier termination of this Lease or Tenant’s
right to possession hereunder.  Tenant
shall repair any damage caused by such removal, including the patching of any
holes to match, as closely as possible, the color surrounding the area where
the equipment and appurtenances were attached. 
Tenant agrees to maintain all of the Tenant’s equipment placed on or
about the roof or in any other part of the Building in proper operating
condition and maintain same in satisfactory condition as to appearance

 

3

 

and safety in Landlord’s sole
discretion.  Such maintenance and
operation shall be performed in a manner to avoid any interference with any
other tenants or Landlord.  Tenant agrees
that at all times during the Term, it will keep the roof of the Building and
the Roof Space free of all trash or waste materials produced by Tenant or
Tenant’s agents, employees or contractors.

 

G.                                     In
light of the specialized nature of the Dish/Antenna, Tenant shall be permitted
to utilize the services of its choice for installation, operation, removal and
repair of the Dish/Antenna, the appurtenances and the Aesthetic Screening, if
any, subject to the reasonable approval of Landlord.  Notwithstanding the foregoing, Tenant must
provide Landlord with prior written notice of any such installation, removal or
repair and coordinate such work with Landlord in order to avoid voiding or
otherwise adversely affecting any warranties granted to Landlord with respect
to the roof.  If necessary, Tenant, at
its sole cost and expense, shall retain any contractor having a then existing
warranty in effect on the roof to perform such work (to the extent that it
involves the roof), or, at Tenant’s option, to perform such work in conjunction
with Tenant’s contractor.  In the event
the Landlord contemplates roof repairs that could affect Tenant’s Dish/Antenna,
or which may result in an interruption of the Tenant’s telecommunication
service, Landlord shall formally notify Tenant at least 30 days in advance
(except in cases of an emergency) prior to the commencement of such
contemplated work in order to allow Tenant to make other arrangements for such
service.

 

H.                                    Tenant
shall not allow any provider of telecommunication, video, data or related
services (“Communication Services”) to locate any equipment on the roof of the
Building or in the Roof Space for any purpose whatsoever, nor may Tenant use
the Roof Space and/or Dish/Antenna to provide Communication Services to an unaffiliated
tenant, occupant or licensee of another building, or to facilitate the
provision of Communication Services on behalf of another Communication Services
provider to an unaffiliated tenant, occupant or licensee of the Building or any
other building.

 

I.                                         Tenant
acknowledges that Landlord may at some time establish a standard license
agreement (the “License Agreement”) with respect to the use of roof space by
tenants of the Building.  Tenant, upon
request of Landlord, shall enter into such License Agreement with Landlord
provided that such agreement does not materially alter the rights of Tenant
hereunder with respect to the Roof Space.

 

J.                                        Tenant
specifically acknowledges and agrees that the terms and conditions of Section 13
of the Lease (Indemnity and Waiver of Claims) shall apply with full force and
effect to the Roof Space and any other portions of the roof accessed or
utilized by Tenant, its representatives, agents, employees or contractors.

 

K.                                    If
Tenant defaults under any of the terms and conditions of this Section or
the Lease, and Tenant fails to cure said default within the time allowed by Section 18
of the Lease, Landlord shall be permitted to exercise all remedies provided
under the terms of the Lease, including removing the Dish/Antenna, the
appurtenances and the Aesthetic Screening, if any, and restoring the Building
and the Roof Space to the condition that existed prior to the installation of
the Dish/Antenna, the appurtenances and the Aesthetic Screening, if any.  If Landlord removes the Dish/Antenna, the
appurtenances and the Aesthetic Screening, if any, as a result of an uncured
default, Tenant shall be liable for all costs and expenses Landlord incurs in
removing the Dish/Antenna, the appurtenances and the Aesthetic Screening, if
any, and repairing any damage to the Building, the roof of the Building and the
Roof Space caused by the installation, operation or maintenance of the
Dish/Antenna, the appurtenances, and the Aesthetic Screening, if any.

 

4

 

EXHIBIT G

 

PARKING AGREEMENT

 

This Exhibit (“Parking Agreement”) is
attached to and made a part of the Lease by and between CA-ONE BAY PLAZA
LIMITED PARTNERSHIP, a Delaware limited partnership (“Landlord”) and Opta Corporation, a Delaware corporation
(“Tenant”) for space in the Building located at 1350 Old Bayshore Highway,
Burlingame, California, commonly known as One Bay Plaza.

 

1.                                       The
capitalized terms used in this Parking Agreement shall have the same
definitions as set forth in the Lease to the extent that such capitalized terms
are defined therein and not redefined in this Parking Agreement.  In the event of any conflict between the
Lease and this Parking Agreement, the latter shall control.

 

2.                                       During
the initial Term, Tenant agrees to lease from Landlord and Landlord agrees to
lease to Tenant a total of 11 non-reserved parking spaces and 0 reserved
parking spaces in the parking facility servicing the Building (“Parking
Facility”). During the initial Term, there shall be no charge for such parking
spaces.  Tenant may, from time to time
request additional parking spaces, and if Landlord shall provide the same, such
parking spaces shall be provided and used on a month-to-month basis, and
otherwise on the foregoing terms and provisions, and at such prevailing monthly
parking charges as shall be established from time to time.  Such charges, if any, shall be payable in
advance to Landlord or such other entity as designated by Landlord, and shall
be sent concurrent with Tenant’s payment of monthly Base Rent to the address
Landlord designates from time to time. 
No deductions from such charges, if any, shall be made for days on which
the Parking Facility is not used by Tenant.

 

3.                                       Tenant
shall at all times comply with all applicable ordinances, rules, regulations,
codes, laws, statutes and requirements of all federal, state, county and
municipal governmental bodies or their subdivisions respecting the use of the
Parking Facility.  Landlord reserves the
right to adopt, modify and enforce reasonable rules (“Rules”) governing the use
of the Parking Facility from time to time including any key-card, sticker or
other identification or entrance system and hours of operation.  The Rules set forth herein are currently in
effect.  Landlord may refuse to permit any
person who violates such Rules to park in the Parking Facility, and any
violation of the Rules shall subject the car to removal from the Parking
Facility.

 

4.                                       Unless
specified to the contrary above, the parking spaces hereunder shall be provided
on a non-designated “first-come, first-served” basis.  Tenant acknowledges that Landlord has no
liability for claims arising through acts or omissions of any independent
operator of the Parking Facility. 
Landlord shall have no liability whatsoever for any damage to items
located in the Parking Facility, nor for any personal injuries or death arising
out of any matter relating to the Parking Facility, and in all events, Tenant
agrees to look first to its insurance carrier and to require that Tenant’s
employees look first to their respective insurance carriers for payment of any
losses sustained in connection with any use of the Parking Facility.  Tenant hereby waives on behalf of its
insurance carriers all rights of subrogation against Landlord or Landlord’s
agents.  Landlord reserves the right to
assign specific parking spaces, and to reserve parking spaces for visitors,
small cars, handicapped persons and for other tenants, guests of tenants or
other parties, which assignment and reservation or spaces may be relocated as
determined by Landlord from time to time, and Tenant and persons designated by
Tenant hereunder shall not park in any location designated for such assigned or
reserved parking spaces.  Tenant
acknowledges that the Parking Facility may be closed entirely or in part in
order to make repairs or perform maintenance services, or to alter, modify,
re-stripe or renovate the Parking Facility, or if required by casualty, strike,
condemnation, act of God, governmental law or requirement or other reason beyond
the operator’s reasonable control.  In
such event, Landlord shall refund any prepaid parking fee hereunder, prorated
on a per diem basis.

 

5.                                       If
Tenant shall default under this Parking Agreement, the operator shall have the
right to remove from the Parking Facility any vehicles hereunder which shall
have been involved or shall have been owned or driven by parties involved in
causing such default, without liability therefor whatsoever.  In addition, if Tenant shall default under
this Parking Agreement, Landlord shall have the right to cancel this Parking
Agreement on 10 days’ written notice, unless within such 10 day period, Tenant
cures such default.  If Tenant defaults
with respect to the same term or condition under this Parking Agreement more
than 3 times during any 12 month period, and Landlord notifies Tenant thereof
promptly after each such default, the next default of such term or condition
during the succeeding 12 month period, shall, at Landlord’s election,
constitute an incurable default.  Such
cancellation right shall be cumulative and in addition to any other rights or
remedies available to Landlord at law or equity, or provided under the Lease
(all of which rights and remedies under the Lease are hereby incorporated
herein, as though fully set forth).  Any
default by Tenant under the Lease shall be a default under this Parking
Agreement, and any default under this Parking Agreement shall be a default
under the Lease.

 

1

 

RULES

 

Landlord reserves the right to
establish and change Parking Facility hours from time to time, although, as of
the date of this Lease, Tenant shall have access to the Parking Facility on a
24-hour basis, 7 days a week, subject to the other terms of this Parking
Agreement. Tenant shall not store or permit its
employees to store any automobiles in the Parking Facility without the prior
written consent of the operator.  Except
for emergency repairs, Tenant and its employees shall not perform any work on
any automobiles while located in the Parking Facility, or on the Property.  If it is necessary for Tenant or its
employees to leave an automobile in the Parking Facility overnight, Tenant
shall provide the operator with prior notice thereof designating the license
plate number and model of such automobile.

 

(ii)           Cars
must be parked entirely within the stall lines painted on the floor, and only
small cars may be parked in areas reserved for small cars.

 

(iii)          All
directional signs and arrows must be observed.

 

(iv)          The
speed limit shall be 5 miles per hour.

 

(v)           Parking
spaces reserved for handicapped persons must be used only by vehicles properly
designated.

 

(vi)          Parking
is prohibited in all areas not expressly designated for parking, including
without limitation:

 

(a)                                  Areas
not striped for parking

(b)                                 aisles

(c)                                  where
“no parking” signs are posted

(d)                                 ramps

(e)                                  loading
zones

 

(vii)         Parking
stickers, key cards or any other devices or forms of identification or entry
supplied by the operator shall remain the property of the operator.  Such device must be displayed as requested and
may not be mutilated in any manner.  The
serial number of the parking identification device may not be obliterated.  Parking passes and devices are not
transferable and any pass or device in the possession of an unauthorized holder
will be void.

 

(viii)        Monthly
fees shall be payable in advance prior to the first day of each month.  Failure to do so will automatically cancel
parking privileges and a charge at the prevailing daily parking rate will be
due.  No deductions or allowances from
the monthly rate will be made for days on which the Parking Facility is not
used by Tenant or its designees.

 

(ix)           Parking
Facility managers or attendants are not authorized to make or allow any
exceptions to these Rules.

 

(x)            Every
parker is required to park and lock his/her own car.

 

(xi)           Loss
or theft of parking pass, identification, key cards or other such devices must
be reported to Landlord and to the Parking Facility manager immediately.  Any parking devices reported lost or stolen
found on any authorized car will be confiscated and the illegal holder will be
subject to prosecution.  Lost or stolen
passes and devices found by Tenant or its employees must be reported to the
office of the Parking Facility immediately.

 

(xii)          Washing,
waxing, cleaning or servicing of any vehicle by the customer and/or his agents
is prohibited.  Parking spaces may be
used only for parking automobiles.

 

(xiii)         Tenant
agrees to acquaint all persons to whom Tenant assigns a parking space with these
Rules.

 

6.                                       TENANT
ACKNOWLEDGES AND AGREES THAT, TO THE FULLEST EXTENT PERMITTED BY LAW, LANDLORD
SHALL NOT BE RESPONSIBLE FOR ANY LOSS OR DAMAGE TO TENANT OR TENANT’S PROPERTY
(INCLUDING, WITHOUT LIMITATIONS, ANY LOSS OR DAMAGE TO TENANT’S AUTOMOBILE OR THE
CONTENTS THEREOF DUE TO THEFT, VANDALISM OR ACCIDENT) ARISING FROM OR RELATED
TO TENANT’S USE OF THE PARKING FACILITY OR EXERCISE OF ANY RIGHTS UNDER THIS
PARKING AGREEMENT, WHETHER OR NOT SUCH LOSS OR DAMAGE RESULTS FROM LANDLORD’S
ACTIVE

 

2

 

NEGLIGENCE OR NEGLIGENT
OMISSION.  THE LIMITATION ON LANDLORD’S
LIABILITY UNDER THE PRECEDING SENTENCE SHALL NOT APPLY HOWEVER TO LOSS OR
DAMAGE ARISING DIRECTLY FROM LANDLORD’S WILLFUL MISCONDUCT.

 

7.                                       Without
limiting the provisions of Paragraph 6 above, Tenant hereby voluntarily
releases, discharges, waives and relinquishes any and all actions or causes of
action for personal injury or property damage occurring to Tenant arising as a
result of parking in the Parking Facility, or any activities incidental
thereto, wherever or however the same may occur, and further agrees that Tenant
will not prosecute any claim for personal injury or property damage against
Landlord or any of its officers, agents, servants or employees for any said
causes of action.  It is the intention of
Tenant by this instrument, to exempt and relieve Landlord from liability for
personal injury or property damage caused by negligence.

 

8.                                       The
provisions of Section 20 of the Lease are hereby incorporated by reference
as if fully recited.

 

Tenant acknowledges that Tenant has read the
provisions of this Parking Agreement, has been fully and completely advised of
the potential dangers incidental to parking in the Parking Facility and is
fully aware of the legal consequences of agreeing to this instrument.

 

3

 

EXHIBIT H

 

ASBESTOS NOTIFICATION

 

This Exhibit is attached to and made a part
of the Lease by and between CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a Delaware
limited partnership (“Landlord”) and Opta Corporation, a Delaware
corporation (“Tenant”) for space in the Building located at 1350 Old Bayshore
Highway, Burlingame, California, commonly known as One Bay Plaza.

 

As you may know, asbestos,
because of its insulating and fire-resistant properties, was historically used
in some construction materials. 
California’s Connelly Act, as well as federal OSHA and some other
California rules, now require building owners and landlords to make certain
notifications regarding known asbestos-containing materials (“ACM”) and
presumed ACMs (“PACM”).  PACM consists of
certain older construction materials which commonly contained asbestos.  This
Exhibit is designed to provide you with the required ACM and PACM notifications.

 

ACM

 

Our
asbestos survey for the Building did not note the presence, location or
quantity of ACM in the Building.

 

PACM

 

PACM consists of thermal system
insulation and surfacing material found in buildings constructed prior to 1981,
and asphalt or vinyl flooring installed prior to 1981.  “Surfacing material” means material that is
sprayed-on, troweled-on or otherwise applied to surfaces (such as acoustical
plaster on ceilings and fireproofing materials on structural members, or other
materials on surfaces for acoustical, fireproofing, and other purposes).  Because this Building was constructed prior
to 1981, PACM may be present.  Our
asbestos survey(s) for the Building note the presence, location and quantity of
the PACM as follows:

 

•                                          Roof:  penthouse, thermal pipe insulation; and
boiler room, hot water heater insulation.

 

The fact that our survey(s) may
identify such materials as PACM does not necessarily mean that no other PACM
exists in the Building.  Please be
advised that if any thermal system insulation, asphalt or vinyl flooring or
surfacing material, of the type described above, are found to be present in the
Building, such materials must be considered PACM unless properly tested and
shown otherwise.

 

Because of the potential
presence of PACM in the Building, we are providing you with the following
warning, which is commonly known as a California Proposition 65 warning:

 

WARNING:  This Building contains asbestos, a chemical
known to the State of California to cause cancer.

 

In addition, you should be
aware that there are certain potential health risks that may result from
exposure to asbestos.  Because we are not
physicians, scientists or industrial hygienists, we have no special knowledge
of the health impact of exposure to asbestos. 
However, we hired an environmental consulting firm to prepare an
asbestos Operations and Maintenance Plan (“O&M Plan”) to address asbestos
matters at the Building.  The O&M
Plan is designed to minimize the potential for a release of asbestos fibers and
outlines a schedule of actions to be undertaken with respect to
asbestos.  The written O&M Plan is
available for your review at our Building Management Office during regular
business hours, and a copy of the O&M Plan will be provided to you upon
request.

 

In general, the written O&M
Plan describes the risks associated with asbestos exposure and how to prevent
such exposure.  The O&M Plan
describes those risks as follows: 
asbestos is not a significant health concern unless asbestos fibers are
released and inhaled.  If inhaled,
asbestos fibers can accumulate in the lungs and, as exposure increases, the
risk of disease (such as asbestosis and cancer) increases.  However, measures to minimize exposure and
consequently minimize the accumulation of fibers, reduces the risk of adverse
health effects.

 

The O&M Plan is designed to
safely manage the ACM and PACM in the Building and to avoid the inadvertent
disturbance of such ACM or PACM.  To that
end, the O&M Plan provides for the training of building housekeeping and
maintenance personnel so that they can conduct their work without causing a
release of asbestos fibers.  As part of
the O&M Plan, we maintain records of all asbestos-related activities and
the results of any asbestos survey, sampling or monitoring conducted in the
Building.

 

The written O&M Plan
describes a number of activities which should be avoided in order to prevent a
release of asbestos fibers in the Building. 
In particular, you should be aware that some of the activities which may
present a health risk by causing an airborne release of asbestos fibers include
moving, drilling, boring or otherwise disturbing ACM or PACM.  Consequently, such activities should not be
attempted by any person not qualified to handle ACM or PACM.  In other words, you must obtain the

 

 

approval of the building management prior to
engaging in any such activities.  Please
contact the Property Manager for more information in this regard.  In addition, please contact the Property
Manager if you notice any deterioration or disturbance of ACM or PACM.  Also, note that the identification of ACM and
PACM in this Exhibit is based on actual knowledge and assumptions that the law
requires us to make:  such materials do
not necessarily comprise all asbestos in the Building.

 

Please be aware that you may
have certain obligations under California and federal laws with regard to the
ACM and PACM in the Building, including obligations to notify your own
employees, contractors, subtenants, agents and others of the presence of ACM
and PACM.  You are solely responsible for
complying with all such applicable laws.

 

Please contact the Property
Manager if you have any questions regarding the contents of this Exhibit.

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