Document:

ex10_5.htm

    THIRTEENTH AMENDMENT TO
THIRD AMENDED AND RESTATED

    MASTER CREDIT FACILITY
AGREEMENT

    (MAA
I)

    

    THIS
THIRTEENTH AMENDMENT TO THIRD AMENDED AND RESTATED MASTER CREDIT FACILITY
AGREEMENT (the “Amendment”)
is effective as of the 30th day of
January, 2008, by and among (i) (a) MID-AMERICA APARTMENT COMMUNITIES, INC., a
Tennessee corporation (the “REIT”),
(b) MID-AMERICA APARTMENTS, L.P., a Tennessee limited partnership (“OP”)
(the REIT and OP being collectively referred to as “Borrower”);
and (ii) PRUDENTIAL MULTIFAMILY MORTGAGE, INC., a Delaware corporation (“Lender”).

     

                                                             RECITALS

     

    A.           Borrower
and Lender are parties to that certain Amended and Restated Master Credit
Facility Agreement dated as of the 22nd day of August, 2002, by and between
Borrower and Lender, which was amended and restated pursuant to that certain
Second Amended and Restated Master Credit Facility Agreement dated as of
December 10, 2003, which has been further amended and restated pursuant to that
certain Third Amended and Restated Master Credit Facility Agreement dated as of
March 30, 2004, which has been further amended pursuant to that
certain:  First Amendment to Third Amended and Restated Master Credit
Facility Agreement dated as of March 31, 2004, Second Amendment to Third Amended
and Restated Master Credit Facility Agreement dated as of August 3, 2004, Third
Amendment to Third Amended and Restated Master Credit Facility Agreement dated
as of December 1, 2004, Fourth Amendment to Third Amended and Restated Master
Credit Facility Agreement dated as of March 31, 2005, Fifth Amendment to Third
Amended and Restated Master Credit Facility Agreement dated as of September 23,
2005, Sixth Amendment to Third Amended and Restated Master Credit Facility
Agreement dated as of February 22, 2006, Seventh Amendment to Third Amended and
Restated Master Credit Facility Agreement dated as of March 30, 2006, Eighth
Amendment to Third Amended and Restated Master Credit Facility Agreement dated
as of December 1, 2006, Ninth Amendment to Third Amended and Restated Master
Credit Facility Agreement dated as of December 28, 2006, Tenth Amendment to
Third Amended and Restated Master Credit Facility Agreement dated as of February
15, 2007, Eleventh Amendment to Third Amended and Restated Master Credit
Facility Agreement dated as of July 1, 2007, and Twelfth Amendment to Third
Amended and Restated Master Credit Facility Agreement dated as of September 1,
2007  (as amended, modified or restated from time to time, the “Master
Agreement”).

     

    B.           All
of the Lender's right, title and interest in the Master Agreement and the Loan
Documents executed in connection with the Master Agreement or the transactions
contemplated by the Master Agreement have been assigned to Fannie Mae pursuant
to that certain Assignment of Collateral Agreements and Other Loan Documents,
dated as of August 22, 2002 and that certain Assignment of Collateral Agreements
and Other Loan Documents, dated as of December 10, 2003 and that certain
Assignment of Collateral Agreement and Other Loan Documents dated as of March
31, 2004 (collectively, the “Assignment”).  Fannie
Mae has not assumed any of the obligations of the Lender under the Master
Agreement or the Loan Documents as a result of the Assignment.  Fannie
Mae has designated the Lender as the servicer of the Loans contemplated by the
Master Agreement. Lender is entering into this Amendment in its capacity as
servicer of the loan set forth in the Master Agreement.

     

    C.           Borrower
and Lender are executing this Amendment pursuant to the Master Agreement to
reflect (i) the extension of the Variable Facility Termination Date under the
Other Credit Agreement as reflected on Schedule I to the
Master Agreement attached hereto and (ii) the pledge of additional Approved
Swaps as reflected on Schedule II to the
Master Agreement attached hereto.

     

               NOW,
THEREFORE, the parties hereto, in consideration of the mutual promises and
agreements contained in this Amendment and the Master Agreement, and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, hereby agree as follows:

     

    Section
1. Schedule
I.  Pursuant to that certain Eighteenth Amendment to Second
Amended and Restated Master Credit Facility Agreement dated as of even date
herewith, Borrower and Lender have agreed to extend the Variable Facility
Termination Date under the Other Credit Agreement.  Accordingly, Schedule I is hereby
deleted in its entirety and replaced with the Schedule I attached to this
Amendment.

     

    Section
2. Schedule
II.  Schedule II is hereby
deleted in its entirety and replaced with the Schedule II attached
to this Amendment.

     

    Section
3. Capitalized
Terms.  All capitalized
terms used in this Amendment which are not specifically defined herein shall
have the respective meanings set forth in the Master Agreement.

    

    Section
4. Reaffirmation.  The Borrower
hereby reaffirms its obligations under the Master Agreement.

     

    Section
5. Full
Force and Effect.  Except as
expressly modified by this Amendment, all terms and conditions of the Master
Agreement shall continue in full force and effect.

     

    Section
6. Counterparts.  This Amendment
may be executed in counterparts by the parties hereto, and each such counterpart
shall be considered an original and all such counterparts shall constitute one
and the same instrument.

     

    [Signatures
follow on next page]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day
and year first above written.

     

    BORROWER:

    

    MID-AMERICA
APARTMENT COMMUNITIES,

    INC., a
Tennessee corporation

    

    

    

    By:
 /s/ Al Campbell

    Name:  Al
Campbell

    Title: 
Executive Vice President and Treasurer

    

    

    MID-AMERICA
APARTMENTS, L.P.,

    a
Tennessee limited partnership

    

    By: 
Mid-America Apartment Communities, Inc.,

    a
Tennessee corporation, its general partner

    

    

    

    By: /s/
Al Campbell

                Name:  Al
Campbell

                Title: 
Executive Vice President and Treasurer

    

    

    [Signatures
continue on next page]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    LENDER:

    

    PRUDENTIAL
MULTIFAMILY MORTGAGE INC., aDelaware corporation

     

    By: /s/
Sharon D. Callahan

    Name:                      Sharon
D. Callahan

    Title:                      Vice
Presidentex10-1.htm

    
 

    

    

    LEASE

    

    

    DATED
April 15, 2008

    

    

    BY
AND BETWEEN

    

    

    

    

    

    OA
OAKCREEK, LLC, a Delaware Limited Liability Company

    

    

    as
Landlord

    

    

    

    and

    

    Proxim
Wireless Corporation, a Delaware corporation

    

    

    

    as
Tenant

    

    

    

    AFFECTING
PREMISES COMMONLY KNOWN AS

    

    804
Buckeye Court

    

    Milpitas,
California

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              LEASE

            
	
              TABLE
      OF CONTENTS

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              PAGE:

            
	
              ARTICLE  1 -
      DEFINITIONS

            	 
      
	 
      	 
      	 
      
	
              1.1

            	
              General

            	
              1

            
	
              1.2

            	
              Additional
      Rent

            	
              1

            
	
              1.3

            	
              Address
      for Notices

            	
              1

            
	
              1.4

            	
              Agents

            	
              1

            
	
              1.5

            	
              Agreed
      Interest Rate

            	
              1

            
	
              1.6

            	
              Base
      Monthly Rate

            	
              1

            
	
              1.7

            	
              Building

            	
              1

            
	
              1.8

            	
              Commencement
      Date

            	
              1

            
	
              1.9

            	
              Common
      Area

            	
              1

            
	
              1.10

            	
              Common
      Operating Expense

            	
              1

            
	
              1.11

            	
              Consumer
      Price Index

            	
              1

            
	
              1.12

            	
              Effective
      Date

            	
              1

            
	
              1.13

            	
              Event
      of Tenant's Default

            	
              1

            
	
              1.14

            	
              Hazardous
      Materials

            	
              1

            
	
              1.15

            	
              Insured
      and Uninsured Peril

            	
              1

            
	
              1.16

            	
              Law

            	
              1

            
	
              1.17

            	
              Lease

            	
              1

            
	
              1.18

            	
              Lease
      Term

            	
              1

            
	
              1.19

            	
              Lender

            	
              1

            
	
              1.20

            	
              Permitted
      Use

            	
              1

            
	
              1.21

            	
              Premises

            	
              1

            
	
              1.22

            	
              Project

            	
              1

            
	
              1.23

            	
              Private
      Restrictions

            	
              2

            
	
              1.24

            	
              Real
      Property Taxes

            	
              2

            
	
              1.25

            	
              Scheduled
      Commencement Date

            	
              2

            
	
              1.26

            	
              Security
      Instrument

            	
              2

            
	
              1.27

            	
              Summary

            	
              2

            
	
              1.28

            	
              Tenant's
      Alterations

            	
              2

            
	
              1.29

            	
              Tenant's
      Share

            	
              2

            
	
              1.30

            	
              Trade
      Fixtures

            	
              2

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              ARTICLE 2 - DEMISE,
      CONSTRUCTION, AND ACCEPTANCE

            	
              2

            
	 
      	 
      	 
      
	
              2.1

            	
              Demise
      of Premises

            	
              2

            
	
              2.2

            	
              Commencement
      Date

            	
              2

            
	
              2.3

            	
              Construction
      of Improvements

            	
              2

            
	
              2.4

            	
              Delivery
      and Acceptance of Possession

            	
              2

            
	
              2.5

            	
              Early
      Occupancy

            	
              2

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              ARTICLE 3 -
      RENT

            	
              3

            
	 
      	 
      	 
      
	
              3.1

            	
              Base
      Monthly Rent

            	
              3

            
	
              3.2

            	
              Additional
      Rent

            	
              3

            
	
              3.3

            	
              Payment
      of Rent

            	
              3

            
	
              3.4

            	
              Late
      Charge and Interest on Rent in Default

            	
              3

            
	
              3.5

            	
              Security
      Deposit

            	
              3

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              ARTICLE 4 - USE OF
      PREMISES

            	
              3

            
	 
      	 
      	 
      
	
              4.1

            	
              Limitation
      on Use

            	
              3

            
	
              4.2

            	
              Compliance
      with Regulations

            	
              3

            
	
              4.3

            	
              Outside
      Areas

            	
              4

            
	
              4.4

            	
              Signs

            	
              4

            
	
              4.5

            	
              Parking

            	
              4

            
	
              4.6

            	
              Rules
      and Regulations

            	
              4

            

    

    

      
        
           

        

        
          i 

          
            

          

        

        
           

        

      

    

    
      	
              LEASE

            
	
              TABLE
      OF CONTENTS

              (continued)

            

    

    

    

    
      	 
      	 
      	
              PAGE:

            
	 
      	 
      	 
      
	
              ARTICLE 5 - TRADE
      FIXTURES AND ALTERATIONS

            	
              4

            
	 
      	 
      	 
      
	
              5.1

            	
              Trade
      Fixtures

            	
              4

            
	
              5.2

            	
              Tenant's
      Alterations

            	
              4

            
	
              5.3

            	
              Alterations
      Required by Law

            	
              5

            
	
              5.4

            	
              Amortization
      of Certain Capital Improvements

            	
              5

            
	
              5.5

            	
              Mechanic's
      Liens

            	
              5

            
	
              5.6

            	
              Taxes
      on Tenant's Property

            	
              5

            
	 
      	 
      	 
      
	
              ARTICLE 6 - REPAIR AND
      MAINTENANCE

            	
              5

            
	 
      	 
      	 
      
	
              6.1

            	
              Tenant's
      Obligation to Maintain

            	
              5

            
	
              6.2

            	
              Landlord's
      Obligation to Maintain

            	
                6

            
	
              6.3

            	
              Control
      of Common Area

            	
              6

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              ARTICLE 7 - WASTE
      DISPOSAL AND UTILITIES

            	
              6

            
	 
      	 
      	 
      
	
              7.1

            	
              Waste
      Disposal

            	
              6

            
	
              7.2

            	
              Hazardous
      Materials

            	
              6

            
	
              7.3

            	
              Utilities

            	
              7

            
	
              7.4

            	
              Compliance
      with Governmental Regulations

            	
              7

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              ARTICLE 8 - COMMON
      OPERATING EXPENSES

            	
              7

            
	 
      	 
      	 
      
	
              8.1

            	
              Tenant's
      Obligation to Reimburse

            	
              7

            
	
              8.2

            	
              Common
      Operating Expenses Defined

            	
              8

            
	
              8.3

            	
              Real
      Property Taxes Defined

            	
              8

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              ARTICLE 9 -
      INSURANCE

            	
              9

            
	 
      	 
      	 
      
	
              9.1

            	
              Tenant's
      Insurance

            	
              9

            
	
              9.2

            	
              Landlord's
      Insurance

            	
              9

            
	
              9.3

            	
              Tenant's
      Obligation to Reimburse

            	
              9

            
	
              9.4

            	
              Release
      and Waiver of Subrogation

            	
              9

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              ARTICLE 10 -
      LIMITATION ON LANDLORD'S LIABILITY AND INDEMNITY

            	
              10

            
	 
      	 
      	 
      
	
              10.1

            	
              Limitation
      on Landlord's Liability

            	
              10

            
	
              10.2

            	
              Limitation
      on Tenant's Recourse

            	
              10

            
	
              10.3

            	
              Indemnification
      of Landlord

            	
              10

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              ARTICLE 11 - DAMAGE TO
      PREMISES

            	
              10

            
	 
      	 
      	 
      
	
              11.1

            	
              Landlord's
      Duty to Restore

            	
              10

            
	
              11.2

            	
              Landlord's
      Right to Terminate

            	
              10

            
	
              11.3

            	
              Tenant's
      Right to Terminate

            	
              11

            
	
              11.4

            	
              Abatement
      of Rent

            	
              11

            

    

    

      
        
           

        

        
          ii 

          
            

          

        

        
           

        

      

    

    
      	
              LEASE

            
	
              TABLE
      OF CONTENTS

              (continued)

            

    

    

    
      	 
      	 
      	
              Page:

            
	 
      	 
      	 
      
	
              ARTICLE 12 -
      CONDEMNATION

            	
              11

            
	 
      	 
      	 
      
	
              12.1

            	
              Landlord's
      Termination Right

            	
              11

            
	
              12.2

            	
              Tenant's
      Termination Right

            	
              11

            
	
              12.3

            	
              Restoration
      and Abatement of Rent

            	
              11

            
	
              12.4

            	
              Temporary
      Taking

            	
              11

            
	
              12.5

            	
              Division
      of Condemnation Award

            	
              12

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              ARTICLE 13 - DEFAULT
      AND REMEDIES

            	
              12

            
	 
      	 
      	 
      
	
              13.1

            	
              Events
      of Tenant's Default

            	
              12

            
	
              13.2

            	
              Landlord's
      Remedies

            	
              13

            
	
              13.3

            	
              Waiver

            	
              13

            
	
              13.4

            	
              Limitation
      on Exercise of Rights

            	
              13

            
	
              13.5

            	
              Waiver
      by Tenant of Certain Remedies

            	
              13

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              ARTICLE 14 -
      ASSIGNMENT AND SUBLETTING

            	
              13

            
	 
      	 
      	 
      
	
              14.1

            	
              Transfer
      by Tenant

            	
              13

            
	
              14.2

            	
              Transfer
      by Landlord

            	
              15

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              ARTICLE 15 - GENERAL
      PROVISIONS

            	
              15

            
	 
      	 
      	 
      
	
              15.1

            	
              Landlord's
      Right to Enter

            	
              15

            
	
              15.2

            	
              Surrender
      of the Premises

            	
              15

            
	
              15.3

            	
              Holding
      Over

            	
              16

            
	
              15.4

            	
              Subordination

            	
              16

            
	
              15.5

            	
              Mortgagee
      Protection and Attornment

            	
              16

            
	
              15.6

            	
              Estoppel
      Certificates and Financial Statements

            	
              16

            
	
              15.7

            	
              Reasonable
      Consent

            	
              16

            
	
              15.8

            	
              Notices

            	
              16

            
	
              15.9

            	
              Attorney's
      Fees

            	
              17

            
	
              15.10

            	
              Corporate
      Authority

            	
              17

            
	
              15.11

            	
              Miscellaneous

            	
              17

            
	
              15.12

            	
              Termination
      by Exercise of Right

            	
              17

            
	
              15.13

            	
              Brokerage
      Commissions

            	
              17

            
	
              15.14

            	
              Force
      Majeure

            	
              17

            
	
              15.15

            	
              Entire
      Agreement

            	
              17

            
	 
      	 
      	 
      
	
              EXHIBITS

            	 
      	 
      
	 
      	 
      	 
      
	
              Exhibit
      A -   Site plan of the Project

            	 
      
	 
      	 
      	 
      
	
              Exhibit
      B -   Intentionally Deleted

            	 
      
	 
      	 
      	 
      
	
              Exhibit
      C -   Approved Floor Plan and
Specifications

            	 
      
	 
      	 
      	 
      
	
              Exhibit
      D -   Acceptance Agreement

            	 
      
	 
      	 
      	 
      
	
              Exhibit
      E -   Description of Private Restrictions

            	 
      
	 
      	 
      	 
      
	
              Exhibit
      F -   Intentionally Deleted

            	 
      
	 
      	 
      	 
      
	
              Exhibit
      G -   Form of Subordination Agreement

            	 
      
	 
      	 
      	 
      
	
              Exhibit
      H -   Hazardous Materials Questionnaire

            	 
      
	 
      	 
      	 
      
	
              Exhibit
      I -     Rooftop Terms and
    Conditions

            	 
      

    

    

    
      
         

      

      
        iii 

        
          

        

      

      
         

      

    

    

    

    
       
SUMMARY OF BASIC LEASE
TERMS

    

    

    TERMS

    

    
      	
              SECTION

            	 
      	 
      	 
      	 
      	 
      
	
              (LEASE
      REFERENCE)

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              A.

            	 
      	
              Lease Reference
      Date:  April 15, 2008

            	 
      	 
      
	
              (Introduction)

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              B.

            	 
      	
              Landlord: 

            	
              OA
      OAKCREEK, LLC, a Delaware Limited Liability Company

            
	
              (Introduction)

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              C.

            	 
      	
              Tenant:

            	
              Proxim
      Wireless Corporation, a Delaware corporation

            
	
              (Introduction)

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              D.

            	 
      	
              Premises:

            	
              That
      area consisting of  44,815 square feet of gross
      leasable

            
	
              (§1.21)

            	 
      	 
      	
              area,
      the address of which is 804 Buckeye Court, Milpitas, California,
      comprising 100% of the Building as shown on Exhibit
      A.

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              E.

            	 
      	
              Project:

            	
              The
      land and improvements shown on Exhibit
      A

            
	
              (§
      1.22)

            	 
      	 
      	
              consisting
      of the Building.

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              F.

            	 
      	
              Building:

            	
              The
      building in which the Premises are located commonly known as 804 Buckeye
      Court, Milpitas, California containing 44,815 square feet of gross
      leasable area.

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              G.

            	 
      	
              Tenant’s
      Share:

            	
              One
      Hundred Percent (100%) of the Building; One Hundred Percent (100%) of the
      Project

            
	
              (§
      1.29)

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              H.

            	 
      	
              Tenant’s
      Allocated Parking Stalls:  161
      stalls.

            
	
              (§
      4.5)

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              I.

            	 
      	
              Commencement
      Date:   July
      1, 2008

            
	
              (§
      1.26)

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              J.

            	 
      	
              Lease
      Term:

            	
              Sixty
      three (63) calendar months.

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              K.

            	 
      	
              Base Monthly
      Rent:

            	
              Months
      1 -3

            	
              $0.00

            
	
              (§
      3.1)

            	 
      	 
      	 
      	
              Months
      4-12

            	
              $56.019.00

            
	 
      	 
      	 
      	 
      	
              Months
      13-24

            	
              $57,699.57

            
	 
      	 
      	 
      	 
      	
              Months
      25-36

            	
              $59,430.56

            
	 
      	 
      	 
      	 
      	
              Months
      37-48

            	
              $61,213.47

            
	 
      	 
      	 
      	 
      	
              Months
      49-60

            	
              $63,049.88

            
	 
      	 
      	 
      	 
      	
              Months
      61-63

            	
              $64,941.37

            
	 
      	 
      	 
      	 
      	 
      	 
      
	
              L.

            	 
      	
              Prepaid
      Rent:

            	
              One  month’s
      rent in the sum of $56,019.00 shall be paid on Lease execution and
      credited against Month 4 of the Lease.

            
	
              (§
      3.3)

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              M.

            	 
      	
              Security
      Deposit:

            	
              $250,000.00
      paid in cash or by letter of credit, per the terms and provisions set
      forth hererin, at time of Lease signature (see Section 3.5 of Lease for
      conditional reduction in Security Deposit)

            
	
              (§
      3.5)

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              N.

            	 
      	
              Permitted
      Use:

            	
              General
      office, R&D, engineering, warehousing, light assembly, and
      administrative support in conformity with the municipal requirements of
      the City of Milpitas.

            
	
              (§
      4.1)

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              O.

            	 
      	
              Permitted
      Tenant’s Alterations Limit:
    $10,000.00

            
	
              (§
      5.2)

            	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
              P.

            	 
      	
              Tenant’s
      Liability Insurance Minimum:  $5,000,000.00

            
	
              (§ 9.1)

            	 
      	 
      	 
      	 
      	 
      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              LEASE

            

    

    

    
      	
              Q.

            	 
      	
              Landlord’s
      Address:

            	
              C/o
      Orchard Partners, LLC

            
	
              (§
      1.3)

            	 
      	 
      	 
      	
              Michael
      Biggar, Managing Member

            
	 
      	 
      	 
      	 
      	
              2665
      N. First St., Suite 310

            
	 
      	 
      	 
      	 
      	
              San
      Jose, CA 95134

            
	 
      	 
      	 
      	 
      	 
      
	
              R.

              (§
      1.3)

            	 
      	
              Tenant’s
      Address:

            	
              The
      Premises, after the Lease Commencement Date.  Prior to Lease
      Commencement:

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
              2115
      O’Nel Dr.

            
	 
      	 
      	 
      	 
      	
              San
      Jose, CA 95131

            
	 
      	 
      	 
      	 
      	 
      
	
              S.

              (§
      15.13)

            	 
      	
              Retained Real Estate
      Brokers:

            	
              Wayne Mascia exclusively as
      broker for Tenant;
      CB Richard Ellis, exclusively as broker for the
      Landlord

            
	 
      	 
      	 
      	 
      	 
      
	
              T.

              (§
      1.17)

            	 
      	
              Lease:

            	
              This
      Lease includes the summary of the Basic Lease Terms, the Lease, and the
      following exhibits and addenda:  First Addendum to Lease; Exhibit A (Site
      Plan of the Project), Exhibit B
      (Intentionally Deleted), Exhibit C
      (Approved Floor Plan and Specifications), Exhibit D
      (Acceptance Agreement), Exhibit E
      (Description of Private Restrictions), Exhibit F
      (intentionally deleted), Exhibit G (Form
      of Subordination Agreement), Exhibit H
      (Hazardous Materials Questionnaire), and Exhibit I  (Rooftop
      Terms and Conditions).

            

    

    

    

    

    

    

    

    

    The foregoing Summary is hereby
incorporated into and made part of this Lease.  Each reference in this
Lease to any term of the Summary shall mean the respective information set forth
above shall be construed to incorporate all of the terms provided under the
particular paragraph pertaining to such information.  In the event of
any conflict between the Summary and the Lease, the Summary shall
control.

    

    
      	
              LANDLORD:

            	 
      	
              TENANT:

            
	 
      	 
      	 
      
	
              OA
      OAKCREEK, LLC, a Delaware limited liability company

            	 
      	
              Proxim
      Wireless Corporation, a Delaware corporation

            
	 
      	 
      	 
      
	
              By:   Orchard
      AEW Fund I, LLC, a Delware limited

            	 
      	
              By:
      /s/ Pankaj S.
      Manglik

            
	
              liability
      company, its sole member

            	 
      	 
      
	 
      	 
      	
              Pankaj S. Manglik,
      CEO

            
	
              By:  Orchard
      A Investor, LLC, a California limited

            	 
      	 
      
	
              liability
      company, its Operating Manager

            	 
      	 
      
	
              It’s:___________________________________

            	 
      	 
      
	 
      	 
      	 
      
	
              By:  /s/ Michael
      Biggar

            	 
      	
              By:  /s/ Brian J.
      Sereda

            
	 
      	 
      	 
      
	
              ______________________________________

            	 
      	
              Brian J.
      Sereda

            
	 
      	 
      	 
      
	
              It’s:
      Manager   4/28/08

            	 
      	
              It’s:  CFO

            

    

    

    
      
         

      

      
        2 

        
          

        

      

      
         

      

    

     

    
      	
               LEASE

            
	
              This
      Lease is dated as of the lease reference date specified in Section A of
      the Summary and is made by and between the party identified as Landlord in
      Section B
      of the Summary and the party identified as Tenant in Section C of
      the Summary.

              

              

              

              ARTICLE
      1

              

              DEFINITIONS

              

                 1.1  General:  Any
      initially capitalized term that is given a special meaning by this Article
      1, the Summary, or by any other provision of this Lease (including the
      exhibits attached hereto) shall have such meaning when used in this Lease
      or any addendum or amendment hereto unless otherwise clearly indicated by
      the context.

              

                 1.2  Additional
      Rent:  The term "Additional Rent" is defined in §3.2.

              

                 1.3  Address for
      Notices:  The term "Address for Notices" shall mean the
      addresses set forth in Sections Q and
      R of the Summary; provided, however, that after the Commencement
      Date, Tenant's Address for Notices shall be the address of the
      Premises.

              

                 1.4  Agents:  The
      term "Agents" shall mean the following: (i) with respect to Landlord or
      Tenant, the agents, employees, contractors, and invitees of such party;
      and (ii) in addition with respect to Tenant, Tenant's subtenants and their
      respective agents, employees, contractors, and invitees.

              

                 1.5  Agreed Interest
      Rate:  The term "Agreed Interest Rate" shall mean that
      interest rate determined as of the time it is to be applied that is equal
      to the lesser of (i) 5% in excess of the discount rate established by the
      Federal Reserve Bank of San Francisco as it may be adjusted from time to
      time, or (ii) the maximum interest rate permitted by Law.

              

                 1.6  Base Monthly
      Rent:  The term "Base Monthly Rent" shall mean the fixed
      monthly rent payable by Tenant pursuant to §3.1
      which is specified in Section K of
      the Summary.

              

                 1.7  Building:  The
      term "Building" shall mean the building in which the Premises are located
      which Building is identified in Section F of
      the Summary, the gross leasable area of which is referred to herein as the
      "Building Gross Leasable Area."

              

                 1.8  Commencement
      Date:  The term "Commencement Date" is the date the Lease
      Term commences, which term is defined in §2.2.

              

                 1.9  Common
      Area:  The term "Common Area" shall mean all areas and
      facilities within the Project that are not designated by Landlord for the
      exclusive use of Tenant or any other lessee or other occupant of the
      Project, including the parking areas, access and perimeter roads,
      pedestrian sidewalks, landscaped areas, trash enclosures, recreation areas
      and the like.

              

                 1.10  Common Operating
      Expenses:  The term "Common Operating Expenses" is
      defined in §8.2.

              

                 1.11  Consumer Price
      Index:  The term "Consumer
 	
              Price
      Index" shall refer to the Consumer Price Index, All Urban Consumers,
      subgroup "All Items", for the San Francisco-Oakland-San Jose metropolitan
      area (base year 1982-84 equals 100), which is presently being published
      monthly by the United States Department of Labor, Bureau of Labor
      Statistics.  However, if this Consumer Price Index is changed so
      that the base year is altered from that used as of the commencement of the
      initial term of this Lease, the Consumer Price Index shall be converted in
      accordance with the conversion factor published by the United States
      Department of Labor, Bureau of Labor Statistics to obtain the same results
      that would have been obtained had the base year not been
      changed.  If no conversion factor is available, or if the
      Consumer Price Index is otherwise changed, revised or discontinued for any
      reason, there shall be substituted in lieu thereof and the term "Consumer
      Price Index" shall thereafter refer to the most nearly comparable official
      price index of the United States government in order to obtain
      substantially the same result as would have been obtained had the original
      Consumer Price Index not been discontinued, revised or changed, which
      alternative index shall be selected by Landlord and shall be subject to
      Tenant's written approval.

              

                1.12  Effective
      Date:  The term "Effective Date" shall mean the date the
      last signatory to this Lease whose execution is required to make it
      binding on the parties hereto shall have executed this Lease.

              

                 1.13  Event of Tenant's
      Default:  The term "Event of Tenant's Default" is defined
      in §13.1.

              

                 1.14  Hazardous
      Materials:  The terms "Hazardous Materials" and
      "Hazardous Materials Laws" are defined in §7.2E.

              

                 1.15  Insured and Uninsured
      Peril:  The terms "Insured Peril" and "Uninsured Peril"
      are defined in §11.2E.

              

                 1.16  Law:  The
      term "Law" shall mean any judicial decision, statute, constitution,
      ordinance, resolution, regulation, rule, administrative order, or other
      requirement of any municipal, county, state, federal or other government
      agency or authority having jurisdiction over the parties to this Lease or
      the Premises, or both, in effect either at the Effective Date or any time
      during the Lease Term.

              

                 1.17  Lease:  The
      term "Lease" shall mean the Summary and all elements of this Lease
      identified in Section T of
      the Summary, all of which are attached hereto and incorporated herein by
      this reference.

              

                 1.18  Lease
      Term:  The term "Lease Term" shall mean the term of this
      Lease which shall commence on the Commencement Date and continue for the
      period specified in Section J of
      the Summary.

              

                 1.19  Lender:  The
      term "Lender" shall mean any beneficiary, mortgagee, secured party,
      lessor, or other holder of any Security Instrument.

              

                 1.20  Permitted
      Use:  The term "Permitted Use" shall mean the use
      specified in Section N of
      the Summary.

              

                 1.21  Premises:  The
      term "Premises" shall mean that building area described in Section D of
      the Summary that is within the
Building.

            

    

     

     

    
      
        
        

      

      
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      	LEASE 
	
                 1.22  Project:  The
      term "Project" shall mean that real property and the improvements thereon
      which are specified in Section E of
      the Summary, the aggregate gross leasable area of which is referred to
      herein as the "Project Gross Leasable Area."

              

                 1.23  Private
      Restrictions:  The term "Private Restrictions" shall mean
      all recorded covenants, conditions and restrictions, private agreements,
      reciprocal easement agreements, and any other recorded instruments
      affecting the use of the Premises which (i) exist as of the Effective
      Date, or (ii) are recorded after the Effective Date and are approved by
      Tenant.

              

                 1.24  Real Property
      Taxes:  The term "Real Property Taxes" is defined in
      §8.3.

              

                 1.25  Scheduled Commencement
      Date:  The term "Scheduled Commencement Date" shall mean
      the date specified in Section I of
      the Summary.

              

                 1.26  Security
      Instrument:  The term "Security Instrument" shall mean
      any underlying lease, mortgage or deed of trust which now or hereafter
      affects the Project, and any renewal, modification, consolidation,
      replacement or extension thereof.

              

                 1.27  Summary:  The
      term "Summary" shall mean the Summary of Basic Lease Terms executed by
      Landlord and Tenant that is part of this Lease.

              

                 1.28  Tenant's
      Alterations:  The term "Tenant's Alterations" shall mean
      all improvements, additions, alterations, and fixtures installed in the
      Premises by Tenant at its expense which are not Trade
      Fixtures.

              

                 1.29  Tenant's
      Share:  The term "Tenant's Share" shall mean the
      percentage obtained by dividing Tenant's Gross Leasable Area by the
      Building Gross Leasable Area, which as of the Effective Date is the
      percentage identified in Section G of
      the Summary.

              

                 1.30  Trade
      Fixtures:  The term "Trade Fixtures" shall mean (i)
      Tenant's inventory, furniture, signs, and business equipment, and (ii)
      anything affixed to the Premises by Tenant at its expense for purposes of
      trade, manufacture, ornament or domestic use (except replacement of
      similar work or material originally installed by Landlord) which can be
      removed without material injury to the Premises unless such thing has, by
      the manner in which it is affixed, become an integral part of the
      Premises.

              

              ARTICLE
      2

              

              DEMISE, CONSTRUCTION,
      AND ACCEPTANCE

              

                 2.1  Demise of
      Premises:  Landlord hereby leases to Tenant, and Tenant
      leases from Landlord, for the Lease Term upon the terms and conditions of
      this Lease, the Premises for Tenant's own use in the conduct of Tenant's
      business together with (i) the right to use all of the Parking Stalls on
      the Property  (subject to the limitations set forth in §4.5),
      and (ii) the non-exclusive right to use the Common Area for ingress to and
      egress from the Premises.  Landlord reserves the use of the
      exterior walls, the roof and the area beneath and above the Premises,
      together with the right to install, maintain, use, and replace ducts,
      wires, conduits and pipes leading through the Premises in locations which
      will not
 	
              materially
      interfere with Tenant's use of the Premises.

              

                 2.2  Commencement
      Date:  If Landlord is not obligated to construct
      improvements prior to the Commencement Date pursuant to §2.3,
      then on the Scheduled Commencement Date Landlord shall deliver possession
      of the Premises to Tenant and the Lease Term shall commence, and such date
      shall be referred to herein as the "Commencement Date".  If
      Landlord is required to construct improvements to the Premises prior to
      the Commencement Date, then the Scheduled Commencement Date shall be only
      an estimate of the actual Commencement Date, and the term of this Lease
      shall begin on the first to occur of the following, which shall be the
      "Commencement Date": (i) the date Landlord offers to deliver possession of
      the Premises to Tenant following substantial completion of all
      improvements to be constructed by Landlord pursuant to §2.3
      except for punchlist items which do not prevent Tenant from using the
      Premises for the Permitted Use and such work as Landlord is required to
      perform but cannot complete until Tenant performs necessary portions of
      construction work it has elected or is required to do; or (ii) the date
      Tenant enters into occupancy of the Premises.

              

                 2.3  Construction of
      Improvements:  At Landlord’s sole cost and expense,
      Landlord shall provide “turn key” interior improvements for the Premises
      as follows:

              

              A.           Landlord
      will construct interior improvements to the Premises as specified and
      described in the floor plan and specifications attached as Exhibit C. In
      performing this construction, Landlord will comply with all applicable
      laws and regulations.

              

              B.           The
      interior improvements to the Premises will include offices, conference
      rooms, manufacturing area, warehouse area, and restrooms, located and
      sized as set forth in Exhibit C.

              

              Tenant
      will cooperate with Landlord in regard to any needed decisions relating to
      the design and construction of the interior improvements.  If
      Tenant delays any needed decisions or cooperation, and this causes the
      delivery of the Premises with interior improvements substantially complete
      to be delayed beyond July 1, 2008, all Rent payments hereunder shall
      nonetheless commence on that date.

              

              Landlord
      warrants for 120 days from delivery of the interior improvements that they
      will be constructed in a good and workmanlike manner of new materials, and
      will be free from defects in materials and workmanship.  Said
      warranty applies only to matters of which Landlord is given written notice
      within the 120 day warranty period.  If timely notified,
      Landlord shall promptly make any repairs and/or replacements at its own
      cost and expense.  Repair/replacement by Landlord is Tenant’s
      sole remedy for breach of this warranty.  Landlord’s warranty
      excludes damages or defects caused by the acts or omissions of
      Tenant.  Landlord will assign (on a non-exclusive basis until
      the expiration of Landlord's warranty), any and all vendor’s and
      manufacturer’s warranties applicable to the Premises and the fixtures and
      equipment therein to Tenant.

              

                 2.4  Delivery and
      Acceptance of Possession:  If this Lease provides that
      Landlord must deliver possession of the Premises to Tenant on a certain
      date, then if Landlord is unable to deliver possession of the
      Premises
 

    

     

     

    
      
        
        

      

      
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              LEASE 

            
	
              to
      Tenant on or before such date for any reason whatsoever, this Lease shall
      not be void or voidable for a period of 180 days thereafter, and Landlord
      shall not be liable to Tenant for any loss or damage resulting
      therefrom.  Tenant shall accept possession and enter into good
      faith occupancy of the entire Premises and commence the operation of its
      business therein within 30 days after the Commencement
      Date.  Tenant acknowledges that it has had an opportunity to
      conduct, and has conducted, such inspections of the Premises as it deems
      necessary to evaluate its condition.  Except as otherwise
      specifically provided herein, Tenant agrees to accept possession of the
      Premises in its then existing condition, "as-is", including all patent and
      latent defects.  Except as otherwise specifically provided
      herein, Tenant's taking possession of any part of the Premises shall be
      deemed to be an acceptance by Tenant of any work of improvement done by
      Landlord in such part as complete and in accordance with the terms of this
      Lease except for defects of which Tenant has given Landlord written notice
      prior to the time Tenant takes possession or within one hundred
      twenty  (120) days thereafter.  At the time Landlord
      delivers possession of the Premises to Tenant, Landlord and Tenant shall
      together execute an acceptance agreement in the form attached as Exhibit D,
      appropriately completed.  Landlord shall have no obligation to
      deliver possession, nor shall Tenant be entitled to take occupancy, of the
      Premises until such acceptance agreement has been executed, and Tenant's
      obligation to pay Base Monthly Rent and Additional Rent shall not be
      excused or delayed because of Tenant's failure to execute such acceptance
      agreement.

              

                 2.5  Early
      Occupancy:    Starting as soon as feasible on
      or after June 1, 2008, Landlord will make reasonable efforts to make
      selected portions of the Premises available for Tenant to move in its
      furniture, fixtures, and equipment.  The time from the first
      such occupancy to the Commencement Date shall be referred to as the “Early
      Occupancy Period.”

              

              Landlord will provide such
      portions of the Premises when they can reasonably be provided within
      Landlord’s construction schedule, and without disturbing Landlord’s
      construction progress.  Tenant understands and agrees that the
      space to be made available will largely or entirely be space identified on
      the plans as “manufacturing” or “warehouse”, and that the portions of the
      Premises which Landlord is finishing as office and meeting space will
      likely be the last completed and the least available prior to July 1,
      2008.  Although Landlord will make reasonable efforts to make
      space available, both parties understand that Landlord is on a tight
      construction schedule to meet all of Tenant’s needs, and that such may not
      allow for as much availability of space or as early availability, as
      needed by Tenant, and it is understood and agreed that Landlord shall not
      under any circumstances have any liability to Tenant for holdover rent
      paid by tenant or any other form of damages suffered by Tenant in regard
      to any failure to provide space prior to the Commencement
      Date.

              

              Occupancy during the Early
      Occupancy Period shall be subject to all of the terms, covenants and
      conditions of the Lease provided, however, that the Rent shall not be
      charged nor payable during the Early Occupancy Period, so long as Tenant
      does not commence operations in the Premises (i.e., begin stationing
      employees in the Premises for their regular
 	
              work,
      as opposed to a move-in function).  Once operations are
      commenced, however, Tenant will commence to make all payments required
      hereunder, and in such event, the “Commencement Date” shall be moved up
      from July 1, 2008 to the date on which Tenant commences
      operations.  The Expiration Date of the Lease shall remain the
      same, however, notwithstanding this earlier Commencement
Date.

              

               Prior to entering for Early
      Occupancy, Tenant will provide Landlord with documentation of insurance
      required under the Lease.  All indemnity obligations of the
      parties will apply to the Early Occupancy Period.

              

              Tenant agrees to and will
      cooperate with construction personnel completing the interior improvements
      in the Premises and not to cause any delay in the completion of these
      improvements.   Any delay in construction  caused
      by Tenant’s early occupancy of the Premises will not delay the
      Commencement Date.

              

              Tenant waives any claims, and
      will indemnify, defend, and hold harmless Landlord against any claims of
      injury or death to person or damage to property resulting from Tenant’s
      entry into the Premises prior to the completion of Landlord’s construction
      work.

              

              ARTICLE
      3

              

              RENT

              

                 3.1  Base Monthly
      Rent:  Commencing on the Commencement Date and continuing
      throughout the Lease Term, Tenant shall pay to Landlord the Base Monthly
      Rent set forth in Section K of
      the Summary.

              

                 3.2  Additional
      Rent:  Commencing on the Commencement Date and continuing
      throughout the Lease Term, Tenant shall pay the following as additional
      rent (the "Additional Rent"): (i) any late charges or interest due
      Landlord pursuant to §3.4;
      (ii) Tenant's Share of Common Operating Expenses as provided in §8.1;
      (iii) Landlord's share of any Subrent received by Tenant upon certain
      assignments and sublettings as required by §14.1;
      (iv) any legal fees and costs due Landlord pursuant to §15.9;
      and (v) any other charges due Landlord pursuant to this
Lease.

              

                 3.3  Payment of
      Rent:  Concurrently with the execution of this Lease by
      both parties, Tenant shall pay to Landlord the amount set forth in Section L of
      the Summary as prepayment of rent for credit against the first
      installment(s) of Base Monthly Rent.  All rent required to be
      paid in monthly installments shall be paid in advance on the first day of
      each calendar month during the Lease Term.  If Section K of
      the Summary provides that the Base Monthly Rent is to be increased during
      the Lease Term and if the date of such increase does not fall on the first
      day of a calendar month, such increase shall become effective on the first
      day of the next calendar month.  All rent shall be paid in
      lawful money of the United States, without any abatement, deduction or
      offset whatsoever (except as specifically provided in §11.4
      and §12.3),
      and without any prior demand therefor.  Rent shall be paid to
      Landlord at its address set forth in Section Q of
      the Summary, or at such other place as Landlord may designate from time to
      time.  Tenant's obligation to pay Base Monthly Rent and Tenant's
      Share of Common Operating Expenses shall be prorated at the commencement
      and expiration
 

    

     

    
      
        
        

      

      
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              LEASE 

            
	
              of
      the Lease Term.

              

                 3.4  Late Charge and
      Interest on Rent in Default:  If any Base Monthly Rent or
      Additional Rent is not received by Landlord from Tenant within ten (10)
      calendar days after Landlord has notified Tenant in writing that payment
      of such rent has not been received by Landlord, then Tenant shall
      immediately pay to Landlord a late charge equal to 5% of such delinquent
      rent as liquidated damages for Tenant's failure to make timely
      payment.  In no event shall this provision for a late charge be
      deemed to grant to Tenant a grace period or extension of time within which
      to pay any rent or prevent Landlord from exercising any right or remedy
      available to Landlord upon Tenant's failure to pay any rent due under this
      Lease in a timely fashion, including any right to terminate this Lease
      pursuant to §13.2C.  If
      any rent remains delinquent for a period in excess of 30 days then, in
      addition to such late charge, Tenant shall pay to Landlord interest on any
      rent that is not paid when due at the Agreed Interest Rate following the
      date such amount became due until paid.

              

                 3.5  Security
      Deposit:  On the Effective Date, Tenant shall deposit
      with Landlord the amount set forth in Section M of
      the Summary as security for the performance by Tenant of its obligations
      under this Lease, and not as prepayment of rent (the "Security
      Deposit").  Landlord may from time to time apply such portion of
      the Security Deposit as is reasonably necessary for the following
      purposes: (i) to remedy any default by Tenant in the payment of rent or
      any other sum due from Tenant to Landlord; (ii) to repair damage to the
      Premises caused by Tenant; (iii) to clean the Premises upon termination of
      the Lease; and (iv) to remedy any other default of Tenant to the extent
      permitted by Law and, in this regard, Tenant hereby waives any restriction
      on the uses to which the Security Deposit may be put contained in
      California Civil Code Section 1950.7.  In the event the Security
      Deposit or any portion thereof is so used, Tenant agrees to pay to
      Landlord promptly upon demand (not later than seven (7) days after such
      demand is made) an amount in cash sufficient to restore the Security
      Deposit to the full original amount (or at Tenant’s election, to increase
      the letter of credit used as a Security Deposit to the requisite
      amount.  Landlord shall not be deemed a trustee of the Security
      Deposit, may use the Security Deposit in business, and shall not be
      required to segregate it from its general accounts.  Tenant
      shall not be entitled to any interest on the Security
      Deposit.  If Landlord transfers the Premises during the Lease
      Term, Landlord may pay the Security Deposit to any transferee of
      Landlord's interest in conformity with the provisions of California Civil
      Code Section 1950.7 and/or any successor statute, in which event the
      transferring Landlord will be released from all liability for the return
      of the Security Deposit.  The Security Deposit is not an advance
      payment of Rent or a measure or limit of Landlord’s damages upon an Event
      of Default.  If Tenant (a) has not committed any Event of
      Tenant’s Default under the Lease, nor any act which, with the passage of
      time or the giving of notice or both would be an Event of Tenant’s
      Default: and (b) Tenant has achieved two consecutive fiscal quarters
      wherein Tenant’s reviewed and publicly available income and expense
      statement shows a  positive net income as determined according
      to generally accepted accounting principals, consistently applied, as
      reviewed by Tenant’s certified public accountants, the letter of credit or
      cash security deposit, as the case may  be, shall
      be
 	
              reduced
      to the amount of the base rent for the last month of the Lease
      Term.  If Landlord is holding a cash deposit, Landlord shall
      refund the balance of the Security Deposit to Tenant, or if Landlord is
      holding a letter of credit, Landlord shall authorize the bank on which the
      letter of credit is drawn to reduce the amount of the letter of credit, in
      either case within fifteen (15) days after Tenant makes written request
      for such refund/reduction, accompanied by adequate proof that the above
      standards have been achieved.  Under no circumstances shall the
      Security Deposit be less than the base rent for the last month of the
      Lease Term.

              

                 3.6  Optional Use of Letter
      of Credit.   In lieu of a cash deposit in
      satisfaction of all or any part of the Security Deposit required by the
      Lease, Tenant may provide all or any portion of the Security Deposit, at
      Tenant's sole cost and option, by way of the deposit of an irrevocable
      letter of credit (the “Letter of Credit”) in favor of Landlord, to be
      held, applied, and returned subject to the provisions of this Lease and
      the following additional provisions.

              

              A.   Terms.   The
      Letter of Credit shall be: (i) for an initial term which ends at least one
      (1) year after the Commencement Date and shall provide on its face that it
      will be automatically renewed unless the bank on which it is drawn gives
      written notice to Landlord at least thirty (30) days before expiration
      that it will not be renewed; (ii) drawn upon a local commercial bank
      reasonably acceptable to Landlord and payable when presented at a location
      within Santa Clara County, California; (iii) in an amount elected by
      Tenant (provided that if the amount is less than the total Security
      Deposit, Tenant provides the remainder by a cash deposit); (iv) in a form
      satisfactory to Landlord in Landlord’s sole discretion; and (v) drafted
      such that it may be drawn on by Landlord solely upon submission of a
      written certification of Landlord that there exists an Event of Tenant's
      Default (as defined in this Lease), that Tenant has not cured such Event
      of Tenant’s Default, and that the amount drawn on the Letter of Credit is
      the net amount due Landlord as a result of such Event of Tenant’s
      Default.   The Letter of Credit shall (vi) name Landlord
      (or Landlord’s agent, as Landlord shall direct) as beneficiary; and (vii)
      allow Landlord to make partial and multiple draws thereunder up to the
      face amount, as determined by Landlord.

              

              B.   Keeping Letter of
      Credit In Force.   Unless and solely to the extent
      that Tenant elects to and does replace part or all of the Letter of Credit
      with a further cash deposit, Tenant shall keep the Letter of Credit in
      effect during the entire Lease term plus a period of sixty (60) days
      thereafter.

              

              C.   Notice of Cancellation
      of Letter of Credit.   If the bank on which the
      Letter of Credit is drawn gives written notice that the Letter of Credit
      will not be renewed, this shall be deemed an Event of Tenant's Default
      under this Lease, without Landlord being required to give any notice or
      opportunity to cure.  Upon such an Event of Tenant’s Default,
      Landlord shall be immediately entitled to draw all of the funds available
      under the Letter of Credit; provided, that Landlord shall give Tenant five
      (5) days written notice of its intent to draw the Letter of Credit because
      of non-renewal, and shall not draw on the Letter of Credit for this
      particular Event of Tenant’s Default if, within such five (5) day period,
      Tenant cures such Event of Tenant’s Default by renewing or replacing the
      Letter of
 

    

     

    
      
        
        

      

      
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              Credit
      with another meeting all the requirements hereof and providing
      documentation thereof as required hereunder or providing a cash security
      deposit in the amount of the required Security Deposit, or some
      combination of the two, in each event sufficient to restore the Security
      Deposit to the amount set forth herein as required at that
      time.

              

              D.   Expiration of Letter
      of Credit.   If Tenant shall allow the Letter of
      Credit to expire at any time when it is required to be maintained
      hereunder, this shall constitute an independent Event of Tenant’s Default,
      without Landlord being required to give any notice or formal opportunity
      to cure (but reserving the Tenant’s right, prior to the time Landlord
      takes action on the Event of Tenant’s Default, to cure it by putting up
      some combination of letter of credit and cash sufficient to restore the
      Security Deposit to the amount set forth herein as required at that
      time).

              

              E.   Failure to Replenish
      Cash Security Deposit. Tenant's failure to replenish any cash
      Security Deposit which is applied by Landlord, within ten (10) days after
      notice that it has been applied, shall be an immediate independent and
      separate Event of Tenant's Default, without further notice or opportunity
      to cure, which shall entitle Landlord to resort to and draw
      on  the Letter of Credit to replenish the cash portion of the
      Security Deposit.

              

              F.   Effect of Draw on
      Letter of Credit.   When a draw is made on the
      Letter of Credit, the sum received shall become and remain a part of the
      Security Deposit until and unless applied by Landlord pursuant to the
      provisions of the Lease.  Any proceeds received by Landlord by
      drawing upon the Letter of Credit shall be applied in accordance with the
      provisions of this Lease relating to the Security
      Deposit.  Tenant waives the provisions of California Code
      §1950.7 (which restricts application of a security deposit only to those
      sums reasonably necessary to remedy defaults in the payment of rent, to
      repair damage caused by Tenant, or to clean premises) and all similar Laws
      now in force or subsequently adopted which restrict application of
      security deposits to specific purposes.

              

              G.   Replenishing Security
      Deposit After Draw. If Landlord draws upon the Letter of Credit,
      Tenant shall, within ten (10) days after receiving notice of such draw,
      provide Landlord with an increased cash Security Deposit or a further
      Letter of Credit (which meets all requirements hereof) in the amount of
      the draw.  Failure to do so shall constitute an independent and
      separate Event of Tenant’s Default without notice or opportunity to
      cure.

              

              H.   Transfer of Premises
      by Landlord.   If Landlord transfers the Premises
      during the Lease Term, and if a Letter of Credit is still posted as part
      of the Security Deposit, Tenant agrees to take such actions as are
      necessary to have the Letter of Credit redrawn in favor of the new owner
      of the Premises, at Tenant's sole cost and expense.

              

              I.    Transfer of Lease by
      Tenant.   If there is any Transfer of the Lease by
      Tenant (as defined herein), Tenant shall take such action, at Tenant’s
      sole cost and expense, as Landlord shall reasonably request in writing to
      cause the Letter of Credit to be reissued or amended or otherwise handled
      such that Landlord’s interests are protected, and Landlord may reasonably
      make
 	
              compliance
      with this provision a condition of Landlord’s approval of a
      Transfer.

              

              J.    Payment of Landlord’s
      Costs and Expenses.  All additional costs and expenses
      incurred by Landlord in regard to the Letter of Credit, including but not
      limited to any reasonable attorney’s fees incurred by Landlord in the
      administration of this Paragraph, shall be paid by Tenant to Landlord as
      Additional Rent within ten (10) days after Landlord provides its written
      invoice for such costs and expenses.  It is the intent of the
      parties that the use of a Letter of Credit should not increase Landlord’s
      expenses or obligations at any time, in any way.

              

              K.    Lender’s
      Rights.   At Landlord’s option, Landlord may require
      that the Letter of Credit be made in favor of Landlord’s Lender, directly
      or conditionally, in order to satisfy Landlord’s Lender’s
      requirements.  If any Lender requires that the Letter of Credit
      be in favor of Lender or otherwise demands changes in the Letter of
      Credit, at any time, Tenant agrees that it will, at its sole cost and
      expense, cause the Letter of Credit to be so reissued or amended that this
      is accomplished, or if unable to accomplish same within thirty (30) days,
      to replace the Letter of Credit with an equal amount of cash Security
      Deposit.

              

              ARTICLE
      4

              

              USE OF
      PREMISES

              

                 4.1  Limitation on
      Use:  Tenant shall use the Premises solely for the
      Permitted Use specified in Section N of
      the Summary.  Tenant shall not do anything in or about the
      Premises which will (i) cause structural injury to the Building, or (ii)
      cause damage to any part of the Building except to the extent reasonably
      necessary for the installation of Tenant's Trade Fixtures and Tenant's
      Alterations, and then only in a manner which has been first approved by
      Landlord in writing.  The population density within the Premises
      as a whole shall at no time exceed four people for each one thousand
      (1,000) rentable square feet in the Premises.  Tenant shall not
      operate any equipment within the Premises which will (i) materially damage
      the Building or the Common Area, (ii) overload existing electrical systems
      or other mechanical equipment servicing the Building, (iii) impair the
      efficient operation of the sprinkler system or the heating, ventilating or
      air conditioning ("HVAC") equipment within or servicing the Building, or
      (iv) damage, overload or corrode the sanitary sewer
      system.  Tenant shall not attach, hang or suspend anything from
      the ceiling, roof, walls or columns of the Building or set any load on the
      floor in excess of the load limits for which such items are designed nor
      operate hard wheel forklifts within the Premises except on concrete or VCT
      floors.  Any dust, fumes, or waste products generated by
      Tenant's use of the Premises shall be contained and disposed so that they
      do not (i) create an unreasonable fire or health hazard, (ii) damage the
      Premises, or (iii) result in the violation of any Law.  Except
      as approved by Landlord, Tenant shall not change the exterior of the
      Building or install any equipment or antennas on or make any penetrations
      of the exterior or roof of the Building; provided that Tenant shall be
      permitted to install its radios, antennas, and related equipment on the
      roof of the Building so long as Tenant complies with applicable laws and
      regulations, including the Regulations attached hereto as Exhibit
      I.  Tenant shall not commit any waste in or about the Premises,
      and
 

    

     

    
      
        
        

      

      
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              Tenant
      shall keep the Premises in an neat, clean, attractive and orderly
      condition, free of any nuisances.  If Landlord designates a
      standard window covering for use throughout the Building, Tenant shall use
      this standard window covering to cover all windows in the
      Premises.  Tenant shall not conduct on any portion of the
      Premises or the Project any sale of any kind, including any public or
      private auction, fire sale, going out-of-business sale, distress sale or
      other liquidation sale.  Notwithstanding anything in this Lease
      to the contrary but conditioned upon the accuracy of the last sentence of
      this Section 4.1 and subject to Landlord’s obligations under Section 6.2
      below, as between Landlord and Tenant: (a) Tenant shall bear the risk of
      complying with Title III of the Americans With Disabilities Act of 1990,
      any state laws governing handicapped access or architectural barriers, and
      all rules, regulations, and guidelines promulgated under such laws, as
      amended from time to time (the “Disabilities Acts”) in the Premises; and
      (b) Landlord shall bear the risk of complying with the Disabilities Acts
      in the Common Areas (subject to reimbursement as set forth in Article 8,
      other than compliance that is necessitated by the use of the Premises for
      other than the Permitted Use or as a result of any alterations or
      additions made by Tenant (which risk and responsibility shall be borne by
      Tenant).  Tenant shall indemnify and hold harmless Landlord and
      Landlord’s Agents and associated parties from and against any and all
      claims which result from Tenant’s failure to comply with its obligations
      under this Paragraph.  Landlord hereby represents and warrants
      that the Premises, as of the Lease Reference Date and as of the
      Commencement Date (after completion of the improvements contemplated by
      Section 2.3), fully complies with the Disabilities Acts as in effect on
      those dates according to the interpretation and approval of the City of
      Milpitas.

              

                 4.2  Compliance with
      Regulations:  Tenant shall not use the Premises in any
      manner which violates any Laws or Private Restrictions which affect the
      Premises.  Tenant shall abide by and promptly observe and comply
      with all Laws and Private Restrictions.  Tenant shall not use
      the Premises in any manner which will cause a cancellation of any
      insurance policy covering Tenant's Alternations or any improvements
      installed by Landlord at its expense or which poses an unreasonable risk
      of damage or injury to the Premises.  Tenant shall not sell, or
      permit to be kept, used, or sold in or about the Premises any article
      which may be prohibited by the standard form of fire insurance
      policy.  Tenant shall comply with all reasonable requirements of
      any insurance company, insurance underwriter, or Board of Fire
      Underwriters which are necessary to maintain the insurance coverage
      carried by either Landlord or Tenant pursuant to this Lease.

              

                 4.3  Outside
      Areas:  No materials, supplies, tanks or containers,
      equipment, finished products or semi-finished products, raw materials,
      inoperable vehicles or articles of any nature shall be stored upon or
      permitted to remain outside of the Premises except in fully fenced and
      screened areas outside the Building which have been designed for such
      purpose and have been approved in writing by Landlord for such use by
      Tenant.

              

                 4.4  Signs:  Tenant
      shall not place on any portion of the Premises any sign, placard,
      lettering in or on windows, banner, displays or other advertising or
      communicative material which is visible from the
 	
              exterior
      of the Building without the prior written approval of
      Landlord.  All such approved signs shall strictly conform to all
      Laws, Private Restrictions, and shall be installed at the expense of
      Tenant. Tenant shall maintain such signs in good condition and
      repair.  Notwithstanding the foregoing, Landlord shall designate
      and approve a location on the Premises for one (1) monument sign for
      Tenant.  The size, design and graphics of any permitted signage
      shall be subject to Landlord’s approval and compliance with Landlord’s
      signage program for the three adjacent buildings owned by Landlord, and
      approval by the City of Milpitas. The cost of the signage, installation,
      maintenance and ultimate removal shall be the responsibility of
      Tenant.  Tenant shall remove the sign at the expiration or
      earlier termination of the Lease, if Landlord shall so request at any time
      before or after the Lease comes to an end.

              

                 4.5  Parking:  Tenant
      is allocated and shall have the right to use all of the Parking Stalls
      contained within the Property for its use and the use of Tenant's Agents,
      the location of which may be designated from time to time by
      Landlord.  Tenant shall not at any time use more parking spaces
      than the number so allocated to Tenant or park its vehicles or the
      vehicles of others in any portion of the Project not designated by
      Landlord as a non-exclusive parking area. Tenant shall not have the
      exclusive right to use any specific parking space.  If Landlord
      grants to any other tenant the exclusive right to use any particular
      parking space(s), Tenant shall not use such spaces.  Landlord
      reserves the right, after having given Tenant reasonable notice, to have
      any vehicles owned by Tenant or Tenant's Agents utilizing parking spaces
      in excess of the parking spaces allowed for Tenant's use to be towed away
      at Tenant's cost.  All trucks and delivery vehicles shall be (i)
      parked at the rear of the Building, (ii) loaded and unloaded in a manner
      which does not interfere with the businesses of other occupants of the
      Project, and (iii) permitted to remain on the Project only so long as is
      reasonably necessary to complete loading and unloading.  In the
      event Landlord elects or is required by any Law to limit or control
      parking in the Project, whether by validation of parking tickets or any
      other method of assessment, Tenant agrees to participate in such
      validation or assessment program under such reasonable rules and
      regulations as are from time to time established by Landlord.

              

                 4.6  Rules and
      Regulations:  Landlord may from time to time promulgate
      reasonable and nondiscriminatory rules and regulations applicable to all
      occupants of the Project for the care and orderly management of the
      Project and the safety of its tenants and invitees.  Such rules
      and regulations shall be binding upon Tenant upon delivery of a copy
      thereof to Tenant, and Tenant agrees to abide by such rules and
      regulations.  If there is a conflict between the rules and
      regulations and any of the provisions of this Lease, the provisions of
      this Lease shall prevail.  Landlord shall not be responsible for
      the violation by any other tenant of the Project of any such rules and
      regulations.

              

              ARTICLE
      5

              

              TRADE FIXTURES AND
      ALTERATIONS

              

                 5.1  Trade
      Fixtures:  Throughout the Lease Term, Tenant may provide
      and install, and shall maintain in good condition, any Trade Fixtures
      required in the conduct of its business in the Premises.  All
      Trade
 

    

     

    
      
        
        

      

      
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              Fixtures
      shall remain Tenant's property.

              

                 5.2   Tenant's
      Alterations:  Construction by Tenant of Tenant's
      Alterations shall be governed by the following:

              

              A.  Tenant
      shall not construct any Tenant's Alterations or otherwise alter the
      Premises without Landlord's prior written approval.  Tenant
      shall be entitled, without Landlord's prior approval, to make Tenant's
      Alterations (i) which do not affect the structural or exterior parts or
      water tight character of the Building, and (ii) the reasonably estimated
      cost of which, plus the original cost of any part of the Premises removed
      or materially altered in connection with such Tenant's Alterations,
      together do not exceed the Permitted Tenant Alterations Limit specified in
      Section O
      of the Summary per work of improvement.  In the event Landlord's
      approval for any Tenant's Alterations is required, Tenant shall not
      construct the Leasehold Improvement until Landlord has approved in writing
      the plans and specifications therefore, and such Tenant's Alterations
      shall be constructed substantially in compliance with such approved plans
      and specifications by a licensed contractor first approved by
      Landlord.  All Tenant's Alterations constructed by Tenant shall
      be constructed by a licensed contractor in accordance with all Laws using
      new materials of good quality.

              

              B.  Tenant
      shall not commence construction of any Tenant's Alterations until (i) all
      required governmental approvals and permits have been obtained, (ii) all
      requirements regarding insurance imposed by this Lease have been
      satisfied, (iii) Tenant has given Landlord at least five days' prior
      written notice of its intention to commence such construction, and (iv) if
      reasonably requested by Landlord, Tenant has obtained contingent liability
      and broad form builders' risk insurance in an amount reasonably
      satisfactory to Landlord if there are any perils relating to the proposed
      construction not covered by insurance carried pursuant to Article
      9.

              

              C.  All
      Tenant's Alterations shall remain the property of Tenant during the Lease
      Term but shall not be altered or removed from the Premises.  At
      the expiration or sooner termination of the Lease Term, all Tenant's
      Alterations shall be surrendered to Landlord as part of the realty and
      shall then become Landlord's property, and Landlord shall have no
      obligation to reimburse Tenant for all or any portion of the value or cost
      thereof; provided, however, that if Landlord requires Tenant to remove any
      Tenant's Alterations, Tenant shall so remove such Tenant's Alterations
      prior to the expiration or sooner termination of the Lease
      Term.  Notwithstanding the foregoing, Tenant shall not be
      obligated to remove any Tenant's Alterations with respect to which the
      following is true: (i) Tenant was required, or elected, to obtain the
      approval of Landlord to the installation of the Leasehold Improvement in
      question; (ii) at the time Tenant requested Landlord's approval, Tenant
      requested of Landlord in writing that Landlord inform Tenant of whether or
      not Landlord would require Tenant to remove such Leasehold Improvement at
      the expiration of the Lease Term; and (iii) at the time Landlord granted
      its approval, it did not inform Tenant that it would require Tenant to
      remove such Leasehold Improvement at the expiration of the Lease
      Term.

              

                 5.3   Alterations Required
      by Law:  Tenant shall make any alteration, addition or
      change of any sort to the
 	
              Premises
      that is required by any Law because of (i) Tenant's particular use or
      change of use of the Premises; (ii) Tenant's application for any permit or
      governmental approval; or (iii) Tenant's construction or installation of
      any Tenant's Alterations or Trade Fixtures.  Any other
      alteration, addition, or change required by Law which is not the
      responsibility of Tenant pursuant to the foregoing shall be made by
      Landlord (subject to Landlord's right to reimbursement from Tenant
      specified in §5.4).

              

                 5.4   Amortization of
      Certain Capital Improvements: Tenant
      shall pay Additional Rent in the event Landlord reasonably elects or is
      required to make any of the following kinds of capital improvements to the
      Project and the cost thereof is not reimbursable as a Common Operating
      Expense: (i) capital improvements required to be constructed in order to
      comply with any Law (excluding any Hazardous Materials Law) not in effect
      or applicable to the Project as of the Effective Date; (ii) modification
      of existing or construction of additional capital improvements or building
      service equipment for the purpose of reducing the consumption of utility
      services or Common Operating Expenses of the Project; (iii) replacement of
      capital improvements or building service equipment existing as of the
      Effective Date when required because of normal wear and tear; and (iv)
      restoration of any part of the Project that has been damaged by any peril
      to the extent the cost thereof is not covered by insurance proceeds
      actually recovered by Landlord up to a maximum amount per occurrence of
      10% of the then replacement cost of the Project.  The amount of
      Additional Rent Tenant is to pay with respect to each such capital
      improvement shall be determined as follows:

              

                         A.  All
      costs paid by Landlord to construct such improvements (including financing
      costs) shall be amortized over the useful life of such improvement (as
      reasonably determined by Landlord in accordance with generally accepted
      accounting principles) with interest on the unamortized balance at the
      then prevailing market rate Landlord would pay if it borrowed funds to
      construct such improvements from an institutional lender, and Landlord
      shall inform Tenant of the monthly amortization payment required to so
      amortize such costs, and shall also provide Tenant with the information
      upon which such determination is made.

              

                         B.  As
      Additional Rent, Tenant shall pay at the same time the Base Monthly Rent
      is due an amount equal to Tenant's Share of that portion of such monthly
      amortization payment fairly allocable to the Building (as reasonably
      determined by Landlord) for each month after such improvements are
      completed until the first to occur of (i) the expiration of the Lease Term
      (as it may be extended), or (ii) the end of the term over which such costs
      were amortized.

              

                 5.5   Mechanic's
      Liens:  Tenant shall keep the Project free from any
      liens, and shall pay when due all bills, arising out of any work
      performed, materials furnished, or obligations incurred by Tenant or
      Tenant's Agents relating to the Project.  If any claim of lien
      is recorded (except those caused by Landlord or Landlord's Agents), Tenant
      shall bond against or discharge the same within 10 days after the same has
      been recorded against the Project.  Should any lien be filed
      against the Project or any action be commenced affecting title to the
      Project, the party receiving notice of such lien or action shall
      immediately give the other party
written
 

    

     

    
      
        
        

      

      
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              notice
      thereof.

              

                 5.6  Taxes on Tenant's
      Property:  Tenant shall pay before delinquency any and
      all taxes, assessments, license fees and public charges levied, assessed
      or imposed against Tenant or Tenant's estate in this Lease or the property
      of Tenant situated within the Premises which become due during the Lease
      Term.  If any tax or other charge is assessed by any
      governmental agency because of the execution of this Lease, such tax shall
      be paid by Tenant.  On demand by Landlord, Tenant shall furnish
      Landlord with satisfactory evidence of these payments.

              ARTICLE
      6

              

              REPAIR AND
      MAINTENANCE

              

                 6.1  Tenant's Obligation to
      Maintain:  Except as otherwise provided in §6.2,
      §11.1,
      and §12.3,
      Tenant shall be responsible for the following during the Lease Term
      (provided, however, that any items which are stated to be Tenant’s
      responsibility under this Section 6.1 where replacement is required and
      which replacement is a capital expense under generally accepted accounting
      principles, and where the need for such replacement did not result from
      Tenant’s failure to carry out its maintenance and repair duties under this
      Lease, will be replaced by Landlord rather than Tenant and will be
      amortized as set forth in Section 5.4 and Tenant will pay the amortized
      cost thereof during the Term as set forth in Section 5.4):

              

                         A.
      Tenant shall clean and maintain in good order, condition, and repair and
      replace when necessary the Premises and every part thereof, through
      regular inspections and servicing, including, but not limited to: (i) all
      plumbing and sewage facilities (including all sinks, toilets, faucets and
      drains), and all ducts, pipes, vents or other parts of the HVAC or
      plumbing system; (ii) all fixtures, interior walls, floors, carpets and
      ceilings; (iii) all windows, doors, entrances, plate glass, showcases and
      skylights (including cleaning both interior and exterior surfaces); (iv)
      all electrical facilities and all equipment (including all lighting
      fixtures, lamps, bulbs, tubes, fans, vents, exhaust equipment and
      systems); and (v) any automatic fire extinguisher equipment in the
      Premises

              

                         B.  With
      respect to utility facilities serving the Premises (including electrical
      wiring and conduits, gas lines, water pipes, and plumbing and sewage
      fixtures and pipes), Tenant shall be responsible for the maintenance and
      repair of any such facilities which serve only the Premises, including all
      such facilities that are within the walls or floor, or on the roof of the
      Premises, and any part of such facility that is not within the Premises,
      but only up to the point where such facilities join a main or other
      junction (e.g., sewer main or electrical transformer) from which such
      utility services are distributed to other parts of the Project as well as
      to the Premises.  Tenant shall replace any damaged or broken
      glass in the Premises (including all interior and exterior doors and
      windows) with glass of the same kind, size and quality.  Tenant
      shall repair any damage to the Premises (including exterior doors and
      windows) caused by vandalism or any unauthorized entry.

              

                         C.
      Tenant shall (i) maintain, repair and replace when necessary all HVAC
      equipment which services only the Premises, and shall keep the same in
      good
 	
              condition
      through regular inspection and servicing, and (ii) maintain continuously
      throughout the Lease Term a service contract for the maintenance of all
      such HVAC equipment with a licensed HVAC repair and maintenance contractor
      approved by Landlord, which contract provides for the periodic inspection
      and servicing of the HVAC equipment at least once every 60 days during the
      Lease Term.  Notwithstanding the foregoing, Landlord may elect
      at any time to assume responsibility for the maintenance, repair and
      replacement of such HVAC equipment which serves only the
      Premises.  Tenant shall maintain continuously throughout the
      Lease Term a service contract for the washing of all windows (both
      interior and exterior surfaces) in the Premises with a contractor approved
      by Landlord, which contract provides for the periodic washing of all such
      windows at least once every 6 months during the Lease
      Term.  Upon Landlord’s written request, Tenant shall furnish
      Landlord with copies of all such service contracts, which shall provide
      that they may not be cancelled or changed without at least 30 days' prior
      written notice to Landlord, and shall provide Landlord with the written
      inspection report(s) upon written request by Landlord.

              

                         D.  All
      repairs and replacements required of Tenant shall be promptly made with
      new materials of like kind and quality.  If the work affects the
      structural parts of the Building or if the estimated cost of any item of
      repair or replacement is in excess of the Permitted Tenant's Alterations
      Limit, then Tenant shall first obtain Landlord's written approval of the
      scope of the work, plans therefore, materials to be used, and the
      contractor.

              

              E.           It
      is understood that mold spores are present essentially everywhere and that
      mold can grow in any moist location.  To prevent mold as best
      possible, requires prevention of moisture and good housekeeping and
      ventilation practices.  Tenant acknowledges the necessity of
      housekeeping, ventilation, and moisture control (especially in kitchens,
      janitor’s closets, bathrooms, break rooms and around outside walls) for
      mold prevention, all to be conducted by Tenant.  In signing this
      Lease, Tenant has first inspected the Premises and certifies that it has
      not observed mold, mildew or moisture within the
      Premises.  Tenant agrees to immediately notify Landlord if it
      observes mold/mildew and/or moisture conditions (from any source,
      including leaks), and allow Landlord to evaluate and make recommendations
      and/or take appropriate corrective action if required
      hereunder.  Tenant relieves Landlord from any liability for any
      bodily injury or damages to property or any other damage whatsoever caused
      by, alleged to be caused by, or associated with moisture or the growth of
      or occurrence of mold or mildew on the Premises.  In addition,
      execution of this Lease constitutes acknowledgement by Tenant that control
      of moisture and mold prevention are integral to its Lease
      obligations.

              

                 6.2   Landlord'’s Obligation
      to Maintain:  Landlord shall repair, maintain and operate
      the Common Area and repair and maintain the roof, exterior and structural
      parts of the building(s) located on the Project so that the same are kept
      in good order and repair.  If there is central HVAC or other
      building service equipment and/or utility facilities serving portions of
      the Common Area and/or both the Premises and other parts of the Building,
      Landlord shall maintain and operate (and replace when necessary) such
      equipment.  Landlord
 

    

     

     

    
      
        
        

      

      
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              shall
      not be responsible for repairs required by an accident, fire or other
      peril or for damage caused to any part of the Project by any act or
      omission of Tenant or Tenant's Agents except as otherwise required by
      Article 11.  Landlord may engage contractors of its choice to
      perform the obligations required of it by this Article, and the necessity
      of any expenditure to perform such obligations shall be at the sole
      discretion of Landlord.

              

                 6.3   Control of Common
      Area:  Landlord shall at all times have exclusive control
      of the Common Area.  Landlord shall have the right, without the
      same constituting an actual or constructive eviction and without entitling
      Tenant to any abatement of rent, to: (i) close any part of the Common Area
      to whatever extent required in the opinion of Landlord's counsel to
      prevent a dedication thereof or the accrual of any prescriptive rights
      therein; (ii) temporarily close the Common Area to perform maintenance or
      for any other reason deemed sufficient by Landlord; (iii) change the
      shape, size, location and extent of the Common Area; (iv) eliminate from
      or add to the Project any land or improvement, including multi-deck
      parking structures; (v) make changes to the Common Area including, without
      limitation, changes in the location of driveways, entrances, passageways,
      doors and doorways, elevators, stairs, restrooms, exits, parking spaces,
      parking areas, sidewalks or the direction of the flow of traffic and the
      site of the Common Area; (vi) remove unauthorized persons from the
      Project; and/or (vii) change the name or address of the Building or
      Project.  Tenant shall keep the Common Area clear of all
      obstructions created or permitted by Tenant.  If in the opinion
      of Landlord unauthorized persons are using any of the Common Area by
      reason of the presence of Tenant in the Building, Tenant, upon demand of
      Landlord, shall restrain such unauthorized use by appropriate
      proceedings.  In exercising any such rights regarding the Common
      Area, (i) Landlord shall make a reasonable effort to minimize any
      disruption to Tenant's business, and (ii) Landlord shall not exercise its
      rights to control the Common Area in a manner that would materially
      interfere with Tenant's use of the Premises without first obtaining
      Tenant's consent.  Landlord shall have no obligation to provide
      guard services or other security measures for the benefit of the
      Project.  Tenant assumes all responsibility for the protection
      of Tenant and Tenant's Agents from acts of third parties; provided,
      however, that nothing contained herein shall prevent Landlord, at its sole
      option, from providing security measures for the Project.

              

              ARTICLE
      7

              

              WASTE DISPOSAL AND
      UTILITIES

              

                 7.1   Waste
      Disposal:  Tenant shall store its waste either inside the
      Premises or within outside trash enclosures that are fully fenced and
      screened in compliance with all Private Restrictions, and designed for
      such purpose.  All entrances to such outside trash enclosures
      shall be kept closed, and waste shall be stored in such manner as not to
      be visible from the exterior of such outside enclosures.  Tenant
      shall cause all of its waste to be regularly removed from the Premises at
      Tenant's sole cost.  Tenant shall keep all fire corridors and
      mechanical equipment rooms in the Premises free and clear of all
      obstructions at all times.

              

                 7.2   Hazardous
      Materials:  Tenant acknowledges receipt of Landlord’s
      environmental study by SECOR
 	
              International,
      Inc. dated December 5, 2006, as Landlord’s disclosure of the environmental
      condition of the Property.  Landlord and Tenant agree as follows
      with respect to the existence or use of Hazardous Materials on the
      Project:

              

              A.  Any handling,
      transportation, storage, treatment, disposal or use of Hazardous Materials
      by Tenant and Tenant's Agents after the Effective Date in or about the
      Project shall strictly comply with all applicable Hazardous Materials
      Laws.  Tenant shall indemnify, defend upon demand with counsel
      reasonably acceptable to Landlord, and hold harmless Landlord from and
      against any liabilities, losses, claims, damages, lost profits,
      consequential damages, interest, penalties, fines, monetary sanctions,
      attorneys' fees, experts' fees, court costs, remediation costs,
      investigation costs, and other expenses which result from or arise in any
      manner whatsoever out of the use, storage, treatment, transportation,
      release, or disposal of Hazardous Materials on or about the Project by
      Tenant or Tenant's Agents after the Effective Date.

              

                         B.  If
      the presence of Hazardous Materials on the Project caused or permitted by
      Tenant or Tenant's Agents after the Effective Date results in
      contamination or deterioration of water or soil resulting in a level of
      contamination greater than the levels established as acceptable by any
      governmental agency having jurisdiction over such contamination, then
      Tenant shall promptly take any and all action necessary to investigate and
      remediate such contamination if required by Law or as a condition to the
      issuance or continuing effectiveness of any governmental approval which
      relates to the use of the Project or any part thereof.  Tenant
      shall further be solely responsible for, and shall defend, indemnify and
      hold Landlord and its agents harmless from and against, all claims, costs
      and liabilities, including attorneys' fees and costs, arising out of or in
      connection with any investigation and remediation required hereunder to
      return the Project to its condition existing prior to the appearance of
      such Hazardous Materials.

              

              C.  Landlord and Tenant
      shall each give written notice to the other as soon as reasonably
      practicable of (i) any communication received from any governmental
      authority concerning Hazardous Materials which relates to the Project, and
      (ii) any contamination of the Project by Hazardous Materials which
      constitutes a violation of any Hazardous Materials Law.  Tenant
      may use small quantities of household chemicals such as adhesives,
      lubricants, and cleaning fluids in order to conduct its business at the
      Premises and such other Hazardous Materials as are necessary for the
      operation of Tenant's business of which Landlord receives notice prior to
      such Hazardous Materials being brought onto the Premises and which
      Landlord consents in writing may be brought onto the
      Premises.  At any time during the Lease Term, Tenant shall,
      within five days after written request therefor received from Landlord,
      disclose in writing all Hazardous Materials that are being used by Tenant
      on the Project, the nature of such use, and the manner of storage and
      disposal.

              

              D  Landlord may cause
      testing wells to be installed on the Project, and may cause the ground
      water to be tested to detect the presence of Hazardous Material by the use
      of such tests as are then customarily used for such
      purposes.  If Tenant so requests,
  Landlord
 

    

     

     

    
      
        
        

      

      
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              shall
      supply Tenant with copies of such test results.  The cost of
      such tests and of the installation, maintenance, repair and replacement of
      such wells shall be paid by Tenant if such tests disclose the existence of
      facts which give rise to liability of Tenant pursuant to its indemnity
      given in §7.2A
      and/or §7.2B.

              

              E.  As used herein, the
      term "Hazardous Material," means any hazardous or toxic substance,
      material or waste which is or becomes regulated by any local governmental
      authority, the State of California or the United States
      Government.  The term "Hazardous Material," includes, without
      limitation, petroleum products, asbestos, PCB's, and any material or
      substance which is (i) listed under Article 9 or defined as hazardous or
      extremely hazardous pursuant to Article 11 of Title 22 of the California
      Administrative Code, Division 4, Chapter 20, (ii) defined as a "hazardous
      waste" pursuant to Section 1004 of the Federal Resource Conservation and
      Recovery Act, 42 U.S.C. 6901 et seq. (42 U.S.C. 6903), or (iii) defined as
      a "hazardous substance" pursuant to Section 101 of the Comprehensive
      Environmental Response; Compensation and Liability Act, 42 U.S.C. 9601 et
      seq. (42 U.S.C. 9601).  As used herein, the term "Hazardous
      Material Law" shall mean any statute, law, ordinance, or regulation of any
      governmental body or agency (including the U.S. Environmental Protection
      Agency, the California Regional Water Quality Control Board, and the
      California Department of Health Services) which regulates the use,
      storage, release or disposal of any Hazardous Material.

              

              F.  The obligations of
      Landlord and Tenant under this §7.2
      shall survive the expiration or earlier termination of the Lease
      Term.  The rights and obligations of Landlord and Tenant with
      respect to issues relating to Hazardous Materials are exclusively
      established by this §7.2.  In
      the event of any inconsistency between any other part of this Lease and
      this §7.2,
      the terms of this §7.2
      shall control.

              

                 7.3   Utilities:  Tenant
      shall promptly pay, as the same become due, all charges for water, gas,
      electricity, telephone, sewer service, waste pick-up and any other
      utilities, materials or services furnished directly to or used by Tenant
      on or about the Premises during the Lease Term, including, without
      limitation, (i) meter, use and/or connection fees, hook-up fees, or
      standby fee (excluding any connection fees or hook-up fees which relate to
      making the existing electrical, gas, and water service available to the
      Premises as of the Commencement Date), and (ii) penalties for discontinued
      or interrupted service.  If any utility service is not
      separately metered to the Premises, then Tenant shall pay its pro rata
      share of the cost of such utility service with all others served by the
      service not separately metered.  However, if Landlord determines
      that Tenant is using a disproportionate amount of any utility service not
      separately metered, then Landlord at its election may (i) periodically
      charge Tenant, as Additional Rent, a sum equal to Landlord's reasonable
      estimate of the cost of Tenant's excess use of such utility service, or
      (ii) install a separate meter (at Tenant's expense) to measure the utility
      service supplied to the Premises.

              

                 7.4  Compliance with
      Governmental Regulations:  Landlord and Tenant shall
      comply with all rules, regulations and requirements promulgated by
      national, state or local governmental agencies or utility
      suppliers
 	
              concerning
      the use of utility services, including any rationing, limitation or other
      control.  Tenant shall not be entitled to terminate this Lease
      nor to any abatement in rent by reason of such compliance.

              

              ARTICLE  8

              

              COMMON OPERATING
      EXPENSES

              

                 8.1   Tenant's Obligation to
      Reimburse:  As Additional Rent, Tenant shall pay Tenant's
      Share (specified in Section G of
      the Summary) of all Common Operating Expenses; provided, however, if the
      Project contains more than one building, then Tenant shall pay Tenant's
      Share of all Common Operating Expenses fairly allocable to the Building,
      including (i) all Common Operating Expenses paid with respect to the
      maintenance, repair, replacement and use of the Building, and (ii) a
      proportionate share (based on the Building Gross Leasable Area as a
      percentage of the Project Gross Leasable Area) of all Common Operating
      Expenses which relate to the Project in general are not fairly allocable
      to any one building that is part of the Project.  Tenant shall
      pay such share of the actual Common Operating Expenses incurred or paid by
      Landlord but not theretofore billed to Tenant within 10 days after receipt
      of a written bill therefor from Landlord, on such periodic basis as
      Landlord shall designate, but in no event more frequently than once a
      month.  Alternatively, Landlord may from time to time require
      that Tenant pay Tenant's Share of Common Operating Expenses in advance in
      estimated monthly installments, in accordance with the following: (i)
      Landlord shall deliver to Tenant Landlord's reasonable estimate of the
      Common Operating expenses it anticipates will be paid or incurred for the
      Landlord's fiscal year in question; (ii) during such Landlord's fiscal
      year Tenant shall pay such share of the estimated Common Operating
      Expenses in advance in monthly installments as required by Landlord due
      with the installments of Base Monthly Rent; and (iii) within 90 days after
      the end of each Landlord's fiscal year, Landlord shall furnish to Tenant a
      statement in reasonable detail of the actual Common Operating Expenses
      paid or incurred by Landlord during the just ended Landlord's fiscal year
      and thereupon there shall be an adjustment between Landlord and Tenant,
      with payment to Landlord or credit by Landlord against the next
      installment of Base Monthly Rent, as the case may require, within 10 days
      after delivery by Landlord to Tenant of said statement, so that Landlord
      shall receive the entire amount of Tenant's Share of all Common Operating
      Expenses for such Landlord's fiscal year and no more.  Tenant
      shall have the right at its expense, exercisable upon reasonable prior
      written notice to Landlord, to inspect at Landlord's office during normal
      business hours Landlord's books and records as they relate to Common
      Operating Expenses.  Such inspection must be within 60 days of
      Tenant's receipt of Landlord's annual statement for the same, and shall be
      limited to verification of the charges contained in such
      statement.  Tenant may not withhold payment of such bill pending
      completion of such inspection.

              

                 8.2   Common Operating
      Expenses Defined:  The term "Common Operating Expenses"
      shall mean the following:

              

              A.  All costs and
      expenses paid or incurred by Landlord in doing the following (including
      payments to independent contractors providing services related
      to
 

    

     

     

    
      
        
        

      

      
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              the
      performance of the following): (i) maintaining, cleaning, repairing and
      resurfacing the roof (including repair of leaks) and the exterior surfaces
      (including painting) of all buildings located on the Project; (ii)
      maintenance of the liability, fire and property damage insurance covering
      the Project carried by Landlord pursuant to 9.2
      (including the prepayment of premiums for coverage of up to one year);
      (iii) maintaining, repairing, operating and replacing when necessary HVAC
      equipment, utility facilities and other building service equipment; (iv)
      providing utilities to the Common Area (including lighting, trash removal
      and water for landscaping irrigation); (v) complying with all applicable
      Laws and Private Restrictions; (vi) operating, maintaining, repairing,
      cleaning, painting, restriping and resurfacing the Common Area; (vii)
      replacement or installation of lighting fixtures, directional or other
      signs and signals, irrigation systems, trees, shrubs, ground cover and
      other plant materials, and all landscaping in the Common Area; and (viii)
      providing security;

              

              B.  The following
      costs: (i) Real Property Taxes as defined in §8.3;
      (ii) the amount of any "deductible" paid by Landlord with respect to
      damage caused by any Insured Peril; (iii) the cost to repair damage caused
      by an Uninsured Peril up to a maximum amount in any 12 month period equal
      to 2% of the replacement cost of the buildings or other improvements
      damaged; and (iv) that portion of all compensation (including benefits and
      premiums for workers' compensation and other insurance) paid to or on
      behalf of employees of Landlord but only to the extent they are involved
      in the performance of the work described by §8.2A
      that is fairly allocable to the Project;

              

              C.  Fees for management
      services rendered by either Landlord or a third party manager engaged by
      Landlord (which may be a party affiliated with Landlord), except that the
      total amount charged for management services and included in Tenant's
      Share of Common Operating Expenses shall not exceed the monthly rate of
      four percent (4%) of the Base Monthly Rent.

              

              D.  All additional
      costs and expenses incurred by Landlord with respect to the operation,
      protection, maintenance, repair and replacement of the Project which would
      be considered a current expense (and not a capital expenditure) pursuant
      to generally accepted accounting principles; provided, however, that
      Common Operating Expenses shall not include any of the following: (i)
      payments on any loans or ground leases affecting the Project; (ii)
      depreciation of any buildings or any major systems of building service
      equipment within the Project; (iii) leasing commissions; (iv) the cost of
      tenant improvements installed for the exclusive use of other tenants of
      the Project; and (v) any cost incurred in complying with Hazardous
      Materials Laws, which subject is governed exclusively by §7.2.

              

              Notwithstanding
      any of the foregoing, to the extent that Landlord is required to replace
      any items which are a capital expense under generally accepted accounting
      principles, the cost of such replacement will be amortized and paid for
      during the term of the Lease on an amortized basis by Tenant under the
      provisions of  Section 5.4, and such expenses by Landlord will
      not be made part of Common Operating Expenses;
    provided,
 	
              however,
      that this does not apply if the need for such replacement resulted from
      Tenant’s failure to carry out its maintenance and repair duties under this
      Lease, in which case, such expense shall be a Common Operating
      Expense.

              

                 8.3  Real Property Taxes
      Defined:  The term "Real Property Taxes" shall mean all
      taxes, assessments, levies, and other charges of any kind or nature
      whatsoever, general and special, foreseen and unforeseen (including all
      installments of principal and interest required to pay any existing or
      future general or special assessments for public improvements, services or
      benefits, and any increases resulting from reassessments resulting from a
      change in ownership, new construction, or any other cause), now or
      hereafter imposed by any governmental or quasi-governmental authority or
      special district having the direct or indirect power to tax or levy
      assessments, which are levied or assessed against, or with respect to the
      value, occupancy or use of all or any portion of the Project (as now
      constructed or as may at any time hereafter be constructed, altered, or
      otherwise changed) or Landlord's interest therein, the fixtures, equipment
      and other property of Landlord, real or personal, that are an integral
      part of and located on the Project, the gross receipts, income, or rentals
      from the Project, or the use of parking areas, public utilities, or energy
      within the Project, or Landlord's business of leasing the
      Project.  If at any time during the Lease Term the method of
      taxation or assessment of the Project prevailing as of the Effective Date
      shall be altered so that in lieu of or in addition to any Real Property
      Tax described above there shall be levied, assessed or imposed (whether by
      reason of a change in the method of taxation or assessment, creation of a
      new tax or charge, or any other cause) an alternate or additional tax or
      charge (i) on the value, use or occupancy of the Project or Landlord's
      interest therein, or (ii) on or measured by the gross receipts, income or
      rentals from the Project, on Landlord's business of leasing the Project,
      or computed in any manner with respect to the operation of the Project,
      then any such tax or charge, however designated, shall be included within
      the meaning of the term "Real Property Taxes" for purposes of this
      Lease.  If any Real Property Tax is based upon property or rents
      unrelated to the Project, then only that part of such Real Property Tax
      that is fairly allocable to the Project shall be included within the
      meaning of the term "Real Property Taxes". Notwithstanding the foregoing,
      the term "Real Property Taxes" shall not include estate, inheritance,
      transfer, gift or franchise taxes of Landlord or the federal or state net
      income tax imposed on Landlord's income from all sources.

              

              ARTICLE
      9

              

              INSURANCE

              

                 9.1
      Tenant's
      Insurance:  Tenant shall maintain insurance complying
      with all of the following:

              

              A.   Tenant
      shall procure, pay for and keep in full force and effect the
      following:

              

              (1).  Commercial
      general liability insurance, including property damage, against
      liability  for personal injury, bodily injury, death and damage
      to property occurring in or about, or resulting from an occurrence in or
      about, the Premises with combined single limit coverage of not less than
      the amount of
 

    

     

     

    
      
        
        

      

      
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              Tenant's
      Liability Insurance Minimum specified in Section P of
      the Summary, which insurance shall contain a "contractual liability"
      endorsement insuring Tenant's performance of Tenant's obligation to
      indemnify Landlord contained in §10.3;

              

              (2).  Fire
      and property damage insurance in so-called "all risk" form insuring
      Tenant's Trade Fixtures and Tenant's Alterations for the full actual
      replacement cost thereof;

              

              (3).  Such
      other insurance that is either (i) required by any Lender, or (ii)
      reasonably required by Landlord and customarily carried by tenants of
      similar property in similar businesses.

              

              B.  Where
      applicable and required by Landlord, each policy of insurance required to
      be carried by Tenant pursuant to this §9.1:
      (i) shall name Landlord and such other parties in interest as Landlord
      reasonably designates as additional insured; (ii) shall be primary
      insurance which provides that the insurer shall be liable for the full
      amount of the loss up to and including the total amount of liability set
      forth in the declarations without the right of contribution from any other
      insurance coverage of Landlord; (iii) shall be in a form satisfactory to
      Landlord; (iv) shall be carried with companies reasonably acceptable to
      Landlord; (v) shall provide that such policy shall not be subject to
      cancellation, lapse or change except after at least 30 days prior written
      notice to Landlord so long as such provision of 30 days notice is
      reasonably obtainable, but in any event not less than 10 days prior
      written notice; (vi) shall not have a "deductible" in excess of such
      amount as is approved by Landlord; (vii) shall contain a cross liability
      endorsement; and (viii) shall contain a "severability"
      clause.  If Tenant has in full force and effect a blanket policy
      of liability insurance with the same coverage for the Premises as
      described above, as well as other coverage of other premises and
      properties of Tenant, or in which Tenant has some interest, such blanket
      insurance shall satisfy the requirements of this §9.1.

              

              C.   A
      copy of each paid-up policy evidencing the insurance required to be
      carried by Tenant pursuant to this §9.1
      (appropriately authenticated by the insurer) or a certificate of the
      insurer, certifying that such policy has been issued, providing the
      coverage required by this §9.1,
      and containing the provisions specified herein, shall be delivered to
      Landlord prior to the time Tenant or any of its Agents enters the Premises
      and upon renewal of such policies, but not less than 5 days prior to the
      expiration of the term of such coverage.  Landlord may, at any
      time, and from time to time, inspect and/or copy any and all insurance
      policies required to be procured by Tenant pursuant to this §9.1.
      If any Lender or insurance advisor reasonably determines at any time that
      the amount of coverage required for any policy of insurance Tenant is to
      obtain pursuant to this §9.1
      is not adequate, then Tenant shall increase such coverage for such
      insurance to such amount as such Lender or insurance advisor reasonably
      deems adequate, not to exceed the level of coverage for such insurance
      commonly carried by comparable businesses similarly situated.

              

                 9.2   Landlord's
      Insurance:  Landlord shall have the following obligations
      and options regarding insurance:
 	
              A.   Landlord
      shall maintain a policy or policies of fire and property damage insurance
      in so-called "all risk" form insuring Landlord (and such others as
      Landlord may designate) against loss of rents for a period of not less
      than 12 months and from physical damage to the Project with coverage of
      not less than the full replacement cost thereof.  Landlord may
      so insure the Project separately, or may insure the Project with other
      property owned by Landlord which Landlord elects to insure together under
      the same policy or policies.  Such fire and property damage
      insurance (i) may be endorsed to cover loss caused by such additional
      perils against which Landlord may elect to insure, including earthquake
      and/or flood, and to provide such additional coverage as Landlord
      reasonably requires, and (ii) shall contain reasonable "deductibles"
      which, in the case of earthquake and flood insurance, may be up to 15% of
      the replacement value of the property insured or such higher amount as is
      then commercially reasonable.  Landlord shall not be required to
      cause such insurance to cover any Trade Fixtures or Tenant's Alterations
      of Tenant.

              

              B.  Landlord
      may maintain a policy or policies of commercial general liability
      insurance insuring Landlord (and such others as are designated by
      Landlord) against liability for personal injury, bodily injury, death and
      damage to property occurring or resulting from an occurrence in, on or
      about the Project, with combined single limit coverage in such amount as
      Landlord from time to time determines is reasonably necessary for its
      protection.

              

                 9.3   Tenant's Obligation to
      Reimburse:  If Landlord's insurance rates for the
      Building are increased at any time during the Lease Term as a result of
      the nature of Tenant's use of the Premises, Tenant shall reimburse
      Landlord for the full amount of such increase immediately upon receipt of
      a bill from Landlord therefore.

              

                 9.4   Release and Waiver of
      Subrogation:  The parties hereto release each other, and
      their respective agents and employees, from any liability for injury to
      any person or damage to property that is caused by or results from any
      risk insured against under any valid and collectible insurance policy
      carried by either of the parties which contains a waiver of subrogation by
      the insurer and is in force at the time of such injury or damage; subject
      to the following limitations: (i) the foregoing provision  shall
      not apply to the commercial general liability insurance described by
      subparagraphs §9.1A
      and §9.2B;
      (ii) such release shall apply to liability resulting from any risk insured
      against or covered by self-insurance maintained or provided by Tenant to
      satisfy the requirements of §9.1
      to the extent permitted by this Lease; and (iii) Tenant shall not be
      released from any such liability to the extent any damages resulting from
      such injury or damage are not covered by the recovery obtained by Landlord
      from such insurance, but only if the insurance in question permits such
      partial release in connection with obtaining a waiver of subrogation from
      the insurer.  This release shall be in effect only so long as
      the applicable insurance policy contains a clause to the effect that this
      release shall not affect the right of the insured to recover under such
      policy.  Each party shall use reasonable efforts to cause each
      insurance policy obtained by it to provide that the insurer waives all
      right of recovery by way of subrogation against the other party and its
      agents and employees in connection
with
 

    

     

     

    
      
        
        

      

      
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              any
      injury or damage covered by such policy.  However, if any
      insurance policy cannot be obtained with such a waiver of subrogation, or
      if such waiver of subrogation is only available at additional cost and the
      party for whose benefit the waiver is to be obtained does not pay such
      additional cost, then the party obtaining such insurance shall notify the
      other party of that fact and thereupon shall be relieved of the obligation
      to obtain such waiver of subrogation rights from the insurer with respect
      to the particular insurance involved.

              

              ARTICLE
      10

              

              LIMITATION ON
      LANDLORD'S

              LIABILITY AND
      INDEMNITY

              

                 10.1   Limitation on
      Landlord's Liability:  Landlord shall not be liable to
      Tenant, nor shall Tenant be entitled to terminate this Lease or to any
      abatement of rent (except as expressly provided otherwise herein), for any
      injury to Tenant or Tenant's Agents, damage to the property of Tenant or
      Tenant's Agents, or loss to Tenant's business resulting from any cause,
      including without limitation any: (i) failure, interruption or
      installation of any HVAC or other utility system or service; (ii) failure
      to furnish or delay in furnishing any utilities or services when such
      failure or delay is caused by fire or other peril, the elements, labor
      disturbances of any character, or any other accidents or other conditions
      beyond the reasonable control of Landlord; (iii) limitation, curtailment,
      rationing or restriction on the use of water or electricity, gas or any
      other form of energy or any services or utility serving the Project; (iv)
      vandalism or forcible entry by unauthorized persons or the criminal act of
      any person; or (v) penetration of water into or onto any portion of the
      Premises or the Building through roof leaks or
      otherwise.  Notwithstanding the foregoing but subject to §9.4,
      the provision above under which it is stated that Landlord shall not be
      liable shall not apply in case of any any such injury, damage or loss
      which is proximately caused by Landlord's willful misconduct or gross
      negligence or active negligence where Landlord has had actual notice of
      the cause and a reasonable time to cure, but does not cure..

              

                 10.2   Limitation on Tenant's
      Recourse:  If Landlord is a corporation, trust,
      partnership, joint venture, unincorporated association or other form of
      business entity: (i) the obligations of Landlord shall not constitute
      personal obligations of the officers, directors, trustees, partners, joint
      venturers, members, owners, stockholders, or other principals or
      representatives of such business entity; and (ii) Tenant shall not have
      recourse to the assets of such officers, directors, trustees, partners,
      joint venturers, members, owners, stockholders, principals or
      representatives except to the extent of their interest in the
      Project.  Tenant shall have recourse only to the interest of
      Landlord in the Project for the satisfaction of the obligations of
      Landlord and shall not have recourse to any other assets of Landlord for
      the satisfaction of such obligations.

              

                 10.3   Indemnification of
      Landlord:  Tenant shall hold harmless, indemnify and
      defend Landlord, and its employees, agents and contractors, with competent
      counsel reasonably satisfactory to Landlord (and Landlord agrees to accept
      counsel that any insurer requires be used), from all liability, penalties,
      losses, damages, costs, expenses, causes of action,
    claims
 	
              and/or
      judgments arising by reason of any death, bodily injury, personal injury
      or property damage resulting from (i) any cause or causes whatsoever
      (other than the willful misconduct or gross negligence of Landlord or
      Landlord’s active negligence where Landlord has had actual notice of the
      cause and a reasonable time to cure, but does not cure) occurring in or
      about or resulting from an occurrence in or about the Premises during the
      Lease Term; (ii) the negligence or willful misconduct of Tenant or its
      agents, employees and contractors, wherever the same may occur; or (iii)
      an Event of Tenant's Default.  The provisions of this §10.3
      shall survive the expiration or sooner termination of this
      Lease.

              

              ARTICLE
      11

              

              DAMAGE TO
      PREMISES

              

                 11.1   Landlord's Duty to
      Restore:  If the Premises are damaged by any peril after
      the Effective Date, Landlord shall restore the Premises unless the Lease
      is terminated by Landlord pursuant to §11.2
      or by Tenant pursuant to §11.3.  All
      insurance proceeds available from the fire and property damage insurance
      carried by Landlord pursuant to §9.2
      shall be paid to and become the property of Landlord.  If this
      Lease is terminated pursuant to either §11.2
      or §11.3,
      then all insurance proceeds available from insurance carried by Tenant
      which covers loss to property that is Landlord's property or would become
      Landlord's property on termination of this Lease shall be paid to and
      become the property of Landlord.  If this Lease is not so
      terminated, then upon receipt of the insurance proceeds (if the loss is
      covered by insurance) and the issuance of all necessary governmental
      permits, Landlord shall commence and diligently prosecute to completion
      the restoration of the Premises, to the extent then allowed by Law, to
      substantially the same condition in which the Premises were immediately
      prior to such damage.  Landlord's obligation to restore shall be
      limited to the Premises and interior improvements constructed by Landlord
      as they existed as of the Commencement Date, excluding any Tenant's
      Alterations, Trade Fixtures and/or personal property constructed or
      installed by Tenant in the Premises.  Tenant shall forthwith
      replace or fully repair all Tenant's Alterations and Trade Fixtures
      installed by Tenant and existing at the time of such damage or
      destruction, and all insurance proceeds received by Tenant from the
      insurance carried by it pursuant to §9.1A(2)
      shall be used for such purpose.

              

                 11.2   Landlord's Right to
      Terminate:  Landlord shall have the right to terminate
      this Lease in the event any of the following occurs, which right may be
      exercised only by delivery to Tenant of a written notice of election to
      terminate within 30 days after the date of such damage:

              

              A.  Either
      the Project or the Building is damaged by an Insured Peril to such an
      extent that the estimated cost to restore exceeds 33% of the then actual
      replacement cost thereof;

              

              B.  Either
      the Project or the Building is damaged by an Uninsured Peril to such an
      extent that the estimated cost to restore exceeds 2% of the then actual
      replacement cost thereof; provided, however, that Landlord may not
      terminate this Lease pursuant to this §11.2B
      if one or more tenants of the Project agree
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              writing
      to pay the amount by which the cost to restore the damage exceeds such
      amount and subsequently deposit such amount with Landlord within 30 days
      after Landlord has notified Tenant of its election to terminate this
      Lease;

              

              C.  The
      Premises are damaged by any peril within 12 months of the last day of the
      Lease Term to such an extent that the estimated cost to restore equals or
      exceeds an amount equal to six times the Base Monthly Rent then due;
      provided, however, that Landlord may not terminate this Lease pursuant to
      this §11.2C
      if Tenant, at the time of such damage, has a then valid express written
      option to extend the Lease Term and Tenant exercises such option to extend
      the Lease Term within 15 days following the date of such damage;
      or

              

              D.  Either
      the Project or the Building is damaged by any peril and, because of the
      Laws then in force, (i) cannot be restored at reasonable cost to
      substantially the same condition in which it was prior to such damage, or
      (ii) cannot be used for the same use being made thereof before such damage
      if restored as required by this Article.

              

              E.  As
      used herein, the following terms shall have the following meanings: (i)
      the term "Insured Peril" shall mean a peril actually insured against for
      which the insurance proceeds actually received by Landlord are sufficient
      (except for any "deductible" amount specified by such insurance) to
      restore the Project under then existing building codes to the condition
      existing immediately prior to the damage; and (ii) the term "Uninsured
      Peril" shall mean any peril which is not an Insured
      Peril.  Notwithstanding the foregoing, if the "deductible" for
      earthquake or flood insurance exceeds 2% of the replacement cost of the
      improvements insured, such peril shall be deemed an "Uninsured
      Peril".

              

                 11.3   Tenant's Right to
      Terminate:  If the Premises are damaged by any peril and
      Landlord does not elect to terminate this Lease or is not entitled to
      terminate this Lease pursuant to §11.2,
      then as soon as reasonably practicable, Landlord shall furnish Tenant with
      the written opinion of Landlord's architect or construction consultant as
      to when the restoration work required of Landlord may be
      completed.  Tenant shall have the right to terminate this Lease
      in the event any of the following occurs, which right may be exercised
      only by delivery to Landlord of a written notice of election to terminate
      within 10  days after Tenant receives from Landlord the estimate
      of the time needed to complete such restoration.

              

              A.  The
      Premises are damaged by any peril and, in the reasonable opinion of
      Landlord's architect or construction consultant, the restoration of the
      Premises cannot be substantially completed within 180 days after the date
      of such damage; or

              

              B.  The
      Premises are damaged by any peril within 12 months of the last day of the
      Lease Term and, in the reasonable opinion of Landlord's architect or
      construction consultant, the restoration of the Premises cannot be
      substantially completed within 90 days after the date of such damage and
      such damage renders unusable more than 30% of the Premises.

              

                 11.4   Abatement of
      Rent:  In the event of damage to
 	
              the
      Premises which does not result in the termination of this Lease, the Base
      Monthly Rent and the Additional Rent shall be temporarily abated during
      the period of restoration in proportion to the degree to which Tenant's
      use of the Premises is impaired by such damage.  Tenant shall
      not be entitled to any compensation or damages from Landlord for loss of
      Tenant's business or property or for any inconvenience or annoyance caused
      by such damage or restoration.  Tenant hereby waives the
      provisions of California Civil Code Sections 1932(2) and 1933(4) and the
      provisions of any similar law hereinafter enacted.

              

              ARTICLE
      12

              

              CONDEMNATION

              

                 12.1   Landlord's Termination
      Right:  Landlord shall have the right to terminate this
      Lease if, as a result of a taking by means of the exercise of the power of
      eminent domain (including a voluntary sale or transfer by Landlord to a
      condemnor under threat of condemnation), (i) all or any part of the
      Premises is so taken, (ii) more than 10% of the Building Leasable Area is
      so taken, or (iii) more than 50% of the Common Area is so
      taken.  Any such right to terminate by Landlord must be
      exercised within a reasonable period of time, to be effective as of the
      date possession is taken by the condemnor.

              

                 12.2   Tenant's Termination
      Right:  Tenant shall have the right to terminate this
      Lease if, as a result of any taking by means of the exercise of the power
      of eminent domain (including any voluntary sale or transfer by Landlord to
      any condemnor under threat of condemnation), (i) 10% or more of the
      Premises is so taken and that part of the Premises that remains cannot be
      restored within a reasonable period of time and thereby made reasonably
      suitable for the continued operation of the Tenant's business, or (ii)
      there is a taking affecting the Common Area and, as a result of such
      taking, Landlord cannot provide parking spaces within reasonable walking
      distance of the Premises equal in number to at least 80% of the number of
      spaces allocated to Tenant by §2.1,
      whether by rearrangement of the remaining parking areas in the Common Area
      (including construction of multi-deck parking structures or restriping for
      compact cars where permitted by Law) or by alternative parking facilities
      on other land.  Tenant must exercise such right within a
      reasonable period of time, to be effective on the date that possession of
      that portion of the Premises or Common Area that is condemned is taken by
      the condemnor.

              

                 12.3   Restoration and
      Abatement of Rent:  If any part of the Premises or the
      Common Area is taken by condemnation and this Lease is not terminated,
      then Landlord shall restore the remaining portion of the Premises and
      Common Area and interior improvements constructed by Landlord as they
      existed as of the Commencement Date, excluding any Tenant's Alterations,
      Trade Fixtures and/or personal property constructed or installed by
      Tenant.  Thereafter, except in the case of a temporary taking,
      as of the date possession is taken the Base Monthly Rent shall be reduced
      in the same proportion that the floor area of that part of the Premises so
      taken (less any addition thereto by reason of any reconstruction) bears to
      the original floor area of the Premises.

              

                 12.4   Temporary
      Taking:  If any portion of
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              Premises
      is temporarily taken for one year or less, this Lease shall remain in
      effect.  If any portion of the Premises is temporarily taken by
      condemnation for a period which exceeds one year or which extends beyond
      the natural expiration of the Lease Term, and such taking materially and
      adversely affects Tenant's ability to use the Premises for the Permitted
      Use, then Tenant shall have the right to terminate this Lease, effective
      on the date possession is taken by the condemnor.

              

                 12.5   Division of
      Condemnation Award:  Any award made as a result of any
      condemnation of the Premises or the Common Area shall belong to and be
      paid to Landlord, and Tenant hereby assigns to Landlord all of its right,
      title and interest in any such award; provided, however, that Tenant shall
      be entitled to receive any condemnation award that is made directly to
      Tenant for the following so long as the award made to Landlord is not
      thereby reduced: (i) for the taking of personal property or Trade Fixtures
      belonging to Tenant; (ii) for the interruption of Tenant's business or its
      moving costs; (iii) for loss of Tenant's goodwill; or (iv) for any
      temporary taking where this Lease is not terminated as a result of such
      taking.  The rights of Landlord and Tenant regarding any
      condemnation shall be determined as provided in this Article, and each
      party hereby waives the provisions of California Code of Civil Procedure
      Section 1265.130 and the provisions of any similar law hereinafter enacted
      allowing either party to petition the Superior Court to terminate this
      Lease in the event of a partial taking of the Premises.

              

              ARTICLE
      13

              

              DEFAULT AND
      REMEDIES

              

                 13.1   Events of Tenant's
      Default:  Tenant shall be in default of its obligations
      under this Lease if any of the following events occurs (an "Event of
      Tenant's Default"):

              

              A.  Tenant
      shall have failed to pay Base Monthly Rent or Additional Rent when due,
      and such failure is not cured within 3 days after delivery of written
      notice from Landlord specifying such failure to pay; or

              

              B.  Tenant
      shall have failed to perform any term, covenant, or condition of this
      Lease except those requiring the payment of Base Monthly Rent or
      Additional Rent, and Tenant shall have failed to cure such breach within
      30 days after written notice from Landlord specifying the nature of such
      breach where such breach could reasonably be cured within said 30 day
      period, or if such breach could not be reasonably cured within said 30 day
      period, Tenant shall have failed to commence such cure within said 30 day
      period and thereafter continue with due diligence to prosecute such cure
      to completion within such time period as is reasonably needed but not to
      exceed 90 days from the date of Landlord's notice; or

              

              C.  Tenant
      shall have sublet the Premises or assigned its interest in the Lease in
      violation of the provisions contained in Article 14; or

              

              D.  Tenant
      shall have abandoned the Premises or left the Premises substantially
      vacant; or

              

              E.  The
      occurrence of the following: (i) the
 	
              making
      by Tenant of any general arrangements or assignments for the benefit of
      creditors; (ii) Tenant becomes a "debtor" as defined in 11 USC 101 or
      any successor statute thereto (unless, in the case of a petition filed
      against Tenant, the same is dismissed within 60 days); (iii) the
      appointment of a trustee or receiver to take possession of substantially
      all of Tenant's assets located at the Premises or of Tenant's interest in
      this Lease, where possession is not restored to Tenant within 30 days; or
      (iv) the attachment, execution or other judicial seizure of substantially
      all of Tenant's assets located at the Premises or of Tenant's interest in
      this Lease, where such seizure is not discharged within 30 days; provided,
      however, in the event that any provision of this Section 13.1E is contrary
      to any applicable Law, such provision shall be of no force or effect;
      or

              

              F.  Tenant
      shall have failed to deliver documents required of it pursuant to §15.4
      or §15.6
      within the time periods specified therein.

              

                 13.2   Landlord's
      Remedies:  If an Event of Tenant's Default occurs,
      Landlord shall have the following remedies, in addition to all other
      rights and remedies provided by any Law or otherwise provided in this
      Lease, to which Landlord may resort cumulatively or in the
      alternative:

              

              A.  Landlord
      may keep this Lease in effect and enforce by an action at law or in equity
      all of its rights and remedies under this Lease, including (i) the right
      to recover the rent and other sums as they become due by appropriate legal
      action,;(ii) the right to make payments required of Tenant or perform
      Tenant's obligations and be reimbursed by Tenant for the cost thereof with
      interest at the Agreed Interest Rate from the date the sum is paid by
      Landlord until Landlord is reimbursed by Tenant; and (iii) the remedies of
      injunctive relief and specific performance to compel Tenant to perform its
      obligations under this Lease.  Notwithstanding anything
      contained in this Lease, in the event of a breach of an obligation by
      Tenant which results in a condition which poses an imminent danger to
      safety of persons or damage to property, an unsightly condition visible
      from the exterior of the Building, or a threat to insurance coverage, then
      if Tenant does not cure such breach within 3 days after delivery to it of
      written notice from Landlord identifying the breach, Landlord may cure the
      breach of Tenant and be reimbursed by Tenant for the cost thereof with
      interest at the Agreed Interest Rate from the date the sum is paid by
      Landlord until Landlord is reimbursed by Tenant.

              

              B.  Landlord
      may enter the Premises and release them to third parties for Tenant's
      account for any period, whether shorter or longer than the remaining Lease
      Term.  Tenant shall be liable immediately to Landlord for all
      costs Landlord incurs in releasing the Premises, including brokers'
      commissions, expenses of altering and preparing the Premises required by
      the releasing.  Tenant shall pay to Landlord the rent and other
      sums due under this Lease on the date the rent is due, less the rent and
      other sums Landlord received from any releasing.  No act by
      Landlord allowed by this subparagraph shall terminate this Lease unless
      Landlord notifies Tenant in writing that Landlord elects to terminate this
      Lease.  Notwithstanding any releasing without termination,
      Landlord may later elect to terminate this Lease because of the default by
      Tenant.

              

            

    

     

     

    
      
        
        

      

      
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              C.  Landlord
      may terminate this Lease by giving Tenant written notice of termination,
      in which event this Lease shall terminate on the date set forth for
      termination in such notice.  Any termination under this §13.2C
      shall not relieve Tenant from its obligation to pay sums then due Landlord
      or from any claim against Tenant for damages or rent previously accrued or
      then accruing.  In no event shall any one or more of the
      following actions  by Landlord, in the absence of a written
      election by Landlord to terminate this Lease, constitute a termination of
      this Lease: (i) appointment of a receiver or keeper in order to protect
      Landlord's interest hereunder; (ii) consent to any subletting of the
      Premises or assignment of this Lease by Tenant, whether pursuant to the
      provisions hereof or otherwise; or (iii) any other action by Landlord or
      Landlord's Agents intended to mitigate the adverse effects of any breach
      of this Lease by Tenant, including without limitation any action taken to
      maintain and preserve the Premises or any action taken to relet the
      Premises or any portions thereof to the extent such actions do not affect
      a termination of Tenant's right to possession of the
Premises.

              

              D.  In
      the event Tenant breaches this Lease and abandons the Premises, this Lease
      shall not terminate unless Landlord gives Tenant written notice of its
      election to so terminate this Lease.  No act by or on behalf of
      Landlord intended to mitigate the adverse effect of such breach, including
      those described by §13.C,
      shall constitute a termination of Tenant's right to possession unless
      Landlord gives Tenant written notice of termination.  Should
      Landlord not terminate this Lease by giving Tenant written notice,
      Landlord may enforce all its rights and remedies under this Lease,
      including the right to recover the rent as it becomes due under the Lease
      as provided in California Civil Code Section 1951.4.

              

              E.  In
      the event Landlord terminates this Lease, Landlord shall be entitled, at
      Landlord's election, to damages in an amount as set forth in California
      Civil Code Section 1951.2 as in effect on the Effective
      Date.  For purposes of computing damages pursuant to California
      Civil Code Section 1951.2, (i) an interest rate equal to the Agreed
      Interest Rate shall be used where permitted, and (ii) the term "rent"
      includes Base Monthly Rent and Additional Rent.  Such damages
      shall include:

              

              (1).  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
      rental loss that Tenant proves could be reasonably avoided, computed by
      discounting such amount at the discount rate of the Federal Reserve Bank
      of San Francisco at the time of award plus one percent (1%);
      and

              

              (2).  Any
      other amount necessary to compensate Landlord for all detriment
      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, including the following: (i) expenses for
      cleaning, repairing or restoring the Premises; (ii) expenses for altering,
      remodeling or otherwise improving the Premises for the purpose of
      reletting, including installation of leasehold improvements (whether such
      installation be funded by a reduction of rent,
direct
 	
              payment
      or allowance to a new tenant, or otherwise); (iii) broker's fees,
      advertising costs and other expenses of reletting the Premises; (iv) costs
      of carrying the Premises, such as taxes, insurance premiums, utilities and
      security precautions; (v) expenses in retaking possession of the Premises;
      and (vi) attorneys' fees and court costs incurred by Landlord in retaking
      possession of the Premises and in releasing the Premises or otherwise
      incurred as a result of Tenant's default.

              

              F.   Nothing
      in this §13.2
      shall limit Landlord's right to indemnification from Tenant as provided in
      §7.2
      and §10.3.  Any
      notice given by Landlord in order to satisfy the requirements of §13.1A
      or §13.1B
      above shall also satisfy the notice requirements of California Code of
      Civil Procedure Section 1161 regarding unlawful detainer
      proceedings.

              

                 13.3   Waiver:  One
      party's consent to or approval of any act by the other party requiring the
      first party's consent or approval shall not be deemed to waive or render
      unnecessary the first party's consent to or approval of any subsequent
      similar act by the other party.  The receipt by Landlord of any
      rent or payment with or without knowledge of the breach of any other
      provision hereof shall not be deemed a waiver of any such breach unless
      such waiver is in writing and signed by Landlord.  No delay or
      omission in the exercise of any right or remedy accruing to either party
      upon any breach by the other party under this Lease shall impair such
      right or remedy or be construed as a waiver of any such breach theretofore
      or thereafter occurring.  The waiver by either party of any
      breach of any provision of this Lease shall not be deemed to be a waiver
      of any subsequent breach of the same or of any other provisions herein
      contained.

              

                 13.4   Limitation On Exercise
      of Rights:  At any time that an Event of Tenant's Default
      has occurred and remains uncured, (i) it shall not be unreasonable for
      Landlord to deny or withhold any consent or approval requested of it by
      Tenant which Landlord would otherwise be obligated to give, and (ii)
      Tenant may not exercise any option to extend, right to terminate this
      Lease, or other right granted to it by this Lease which would otherwise be
      available to it.

              

                 13.5   Waiver by Tenant of
      Certain Remedies:  Tenant waives the provisions of
      Sections 1932(1), 1941 and 1942 of the California Civil Code and any
      similar or successor law regarding Tenant's right to terminate this Lease
      or to make repairs and deduct the expenses of such repairs from the rent
      due under this Lease.  Tenant hereby waives any right of
      redemption or relief from forfeiture under the laws of the State of
      California, or under any other present or future law, including the
      provisions of Sections 1174 and 1179 of the California Code of Civil
      Procedure.

              

              ARTICLE
      14

              

              ASSIGNMENT AND
      SUBLETTING

              

                 14.1  Transfer By
      Tenant:  The following provisions shall apply to any
      assignment, subletting or other transfer by Tenant or any subtenant or
      assignee or other successor in interest of the original Tenant
      (collectively referred to in this §14.1
      as "Tenant"):

              

              A.  Tenant
      shall not do any of the following (collectively referred to herein as a
      "Transfer"), whether

            

    

     

     

    
      
        
        

      

      
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              voluntarily,
      involuntarily or by operation of law, without the prior written consent of
      Landlord, which consent shall not be unreasonably withheld, conditioned,
      or delayed: (i) sublet all or any part of the Premises or allow it to be
      sublet, occupied or used by any person or entity other than Tenant; (ii)
      assign its interest in this Lease; (iii) mortgage or encumber the Lease
      (or otherwise use the Lease as a security device) in any manner; or (iv)
      materially amend or modify an assignment, sublease or other transfer that
      has been previously approved by Landlord.  Tenant shall
      reimburse Landlord for all reasonable costs and attorneys' fees incurred
      by Landlord in connection with the evaluation, processing, and/or
      documentation of any requested Transfer, whether or not Landlord's consent
      is granted.  Landlord's reasonable costs shall include the cost
      of any review or investigation performed by Landlord or consultant acting
      on Landlord's behalf of (i) Hazardous Materials (as defined in Section
      7.2E of this Lease) used, stored, released, or disposed of by the
      potential Subtenant or Assignee, and/or (ii) violations of Hazardous
      Materials Law (as defined in Section 7.2E of this lease) by the Tenant or
      the proposed Subtenant or Assignee.  Any Transfer so approved by
      Landlord shall not be effective until Tenant has delivered to Landlord an
      executed counterpart of the document evidencing the Transfer which (i) is
      in a form reasonably approved by Landlord; (ii) contains the same terms
      and conditions as stated in Tenant's notice given to Landlord pursuant to
      §14.1B;
      and (iii) in the case of an assignment of the Lease, contains the
      agreement of the proposed transferee to assume all obligations of Tenant
      under this Lease arising after the effective date of such Transfer and to
      remain jointly and severally liable therefore with Tenant. Any attempted
      Transfer without Landlord's consent shall constitute an Event of Tenant's
      Default and shall be voidable at Landlord's option.  Landlord's
      consent to any one Transfer shall not constitute a waiver of the
      provisions of this §14.1
      as to any subsequent Transfer or a consent to any subsequent
      Transfer.  No Transfer, even with the consent of Landlord, shall
      relieve Tenant of its personal and primary obligation to pay the rent and
      to perform all of the other obligations to be performed by Tenant
      hereunder.  The acceptance of rent by Landlord from any person
      shall not be deemed to be a waiver by Landlord of any provision of this
      Lease nor to be a consent to any Transfer.

              

              B.  At
      least 30 days before a proposed Transfer is to become effective, Tenant
      shall give Landlord written notice of the proposed terms of such Transfer
      and request Landlord's approval, which notice shall include the following:
      (i) the name and legal composition of the proposed transferee; (ii) a
      current financial statement of the transferee, financial statements of the
      transferee covering the preceding three years if the same exist, and (if
      available) an audited financial statement of the transferee for a period
      ending not more than one year prior to the proposed effective date of the
      Transfer, all of which statements are prepared in accordance with
      generally accepted accounting principles; (iii) the nature of the proposed
      transferee's business to be carried on in the Premises; (iv) all
      consideration to be given on account of the Transfer; (v) a current
      financial statement of Tenant; and (vi) an accurately filled out response
      to Landlord's standard Hazardous Materials
      Questionnaire.  Tenant shall provide to Landlord such other
      information as may be reasonably requested by Landlord within seven days
      after Landlord's receipt of such notice from Tenant.
 	
              Landlord
      shall respond in writing to Tenant's request for Landlord's consent to a
      Transfer within the later of (i) 15 days of receipt of such request
      together with the required accompanying documentation, or (ii) seven days
      after Landlord's receipt of all information which Landlord reasonably
      requests within seven days after it receives Tenant's first notice
      regarding the Transfer in question.  If Landlord fails to
      respond in writing within said period, Landlord will be deemed to have
      withheld its consent  to such Transfer.  Tenant shall
      immediately notify Landlord of any material modification to the proposed
      terms of such Transfer.

              

              C.  In
      the event that Tenant seeks to make any Transfer of the Lease by
      assignment, or by a Sublease of all or substantially all of the Premises
      for all or substantially all of the  remaining term of the
      Lease, then,
      Landlord shall have the right to terminate this Lease, either (i)
      on the condition that the proposed transferee immediately enter into a
      direct lease of the Premises with Landlord on the same terms and
      conditions contained in Tenant's notice, or (ii) so that Landlord is
      thereafter free to lease the Premises to whomever it pleases on whatever
      terms are acceptable to Landlord.  In the event Landlord elects
      to so terminate this Lease, then (i) if such termination is conditioned
      upon the execution of a lease between Landlord and the proposed
      transferee, Tenant's obligations under this Lease shall not be terminated
      until such transferee executes a new lease with Landlord, enters into
      possession and commences the payment of rent, and (ii) if Landlord elects
      simply to terminate this Lease, the Lease shall so terminate in its
      entirety fifteen (15) days after Landlord has notified Tenant in writing
      of such election.  Upon such termination, Tenant shall be
      released from any further obligation under this Lease.  Landlord
      and Tenant shall execute a cancellation and release with respect to the
      Lease to effect such termination.  If Landlord elects to
      terminate the Lease under the provisions of this Section 14.1C, it shall
      give Tenant written notice of such election; upon receipt of such notice,
      Tenant shall have the right to rescind it’s proposed Transfer by a notice
      in writing to Landlord given within seven (7) days of receipt of
      Landlord’s notice, and if Tenant gives such notice of rescission, Landlord
      shall not have a right to terminate as to the rescinded
      Transfer.

              

              C1.           If
      Tenant sells its business and satisfies the conditions of Section
      14.1F(3), the foregoing recapture provision of Section 14.1C shall not be
      applicable.

              

              D.  If
      Landlord consents to a Transfer proposed by Tenant, Tenant may enter into
      such Transfer, and if Tenant does so, the following shall
      apply:

              

              (1).  Tenant
      shall not be released of its liability for the performance of all of its
      obligations under the Lease.

              

              (2).  If
      Tenant assigns its interest in this Lease, then Tenant shall pay to
      Landlord 50% of all Subrent (as defined in §14.1D(5))
      received by Tenant over and above (i) the assignee's agreement to assume
      the obligations of Tenant under this Lease, and (ii) all Permitted
      Transfer Costs related to such assignment.  In the case of
      assignment, the amount of Subrent owed to Landlord shall be paid to
      Landlord on the same basis, whether periodic or in lump sum, that such
      Subrent is
 

    

     

     

    
      
        
        

      

      
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              paid
      to Tenant by the assignee.

              

              (3).  If
      Tenant sublets any part of the Premises, then with respect to the space so
      subleased, Tenant shall pay to Landlord 50% of the positive difference, if
      any, between (i) all Subrent paid by the subtenant to Tenant, less (ii)
      the sum of all Base Monthly Rent and Additional Rent allocable to the
      space sublet and all Permitted Transfer Costs related to such
      sublease.  Such amount shall be paid to Landlord on the same
      basis, whether periodic or in lump sum, that such Subrent is paid to
      Tenant by its subtenant.  In calculating Landlord's share of any
      periodic payments, all Permitted Transfer Costs shall be first recovered
      by Tenant.

              

              (4).  Tenant's
      obligations under this §14.1D
      shall survive any Transfer, and Tenant's failure to perform its
      obligations hereunder shall be an Event of Tenant's Default.  At
      the time Tenant makes any payment to Landlord required by this §14.1D,
      Tenant shall deliver an itemized statement of the method by which the
      amount to which Landlord is entitled was calculated, certified by Tenant
      as true and correct.  Landlord shall have the right at
      reasonable intervals to inspect Tenant's books and records relating to the
      payments due hereunder.  Upon request therefor, Tenant shall
      deliver to Landlord copies of all bills, invoices or other documents upon
      which its calculations are based.  Landlord may condition its
      approval of any Transfer upon obtaining a certification from both Tenant
      and the proposed transferee of all Subrent and other amounts that are to
      be paid to Tenant in connection with such Transfer.

              

              (5).  As
      used in this §14.1D,
      the term "Subrent" shall mean any consideration of any kind received, or
      to be received, by Tenant as a result of the Transfer, if such sums are
      related to Tenant's interest in this Lease or in the Premises, including
      payments from or on behalf of the transferee (in excess of the book value
      thereof) for Tenant's assets, fixtures, leasehold improvements, inventory,
      accounts, goodwill, equipment, furniture, and general
      intangibles.  As used in this §14.1D,
      the term "Permitted Transfer Costs" shall mean (i) all reasonable leasing
      commissions paid to third parties not affiliated with Tenant in order to
      obtain the Transfer in question; and (ii) all reasonable attorneys' fees
      incurred by Tenant with respect to the Transfer in question.

              

              E.  If
      Tenant is a corporation, the following shall be deemed a voluntary
      assignment of Tenant's interest in this Lease: (i) any dissolution,
      merger, consolidation, or other reorganization of or affecting Tenant if
      Tenant is not the surviving corporation; and (ii) if the capital stock of
      Tenant is not publicly traded, the sale or transfer to one person or
      entity (or to any group of related persons or entities) stock possessing
      more than 50% of the total combined voting power of all classes of
      Tenant's capital stock issued, outstanding and entitled to vote for the
      election of directors.  If Tenant is a partnership, any
      withdrawal or substitution (whether voluntary, involuntary or by operation
      of law, and whether occurring at one time or over a period of time) of any
      partner owning 25% or more (cumulatively) of any interest in the capital
      or profits of the partnership, or the dissolution of the partnership,
      shall be deemed a voluntary assignment of Tenant's interest in this
      Lease.

              

 	
              F.  Notwithstanding
      anything contained in §14.1,
      so long as Tenant otherwise complies with the provisions of §14.1
      Tenant may enter into any of the following transfers (a "Permitted
      Transfer") without Landlord's prior written consent, and Landlord shall
      not be entitled to terminate the Lease pursuant to §14.1C
      or to receive any part of any Subrent resulting therefrom that would
      otherwise be due it pursuant to §14.1D:

              

              (1).  Tenant
      may sublease all or part of the Premises or assign its interest in this
      Lease to any corporation which controls, is controlled by, or is under
      common control with the original Tenant to this Lease by means of an
      ownership interest of more than 50%;

              

              (2).  Tenant
      may assign its interest in the Lease to a corporation which results from a
      merger, consolidation or other reorganization in which Tenant is not the
      surviving corporation, so long as the surviving corporation has a net
      worth at the time of such assignment that is equal to or greater than the
      net worth of Tenant immediately prior to such transaction;
and

              

              (3).  Tenant
      may assign this Lease to a corporation which purchases or otherwise
      acquires all or substantially all of the assets of Tenant, so long as such
      acquiring corporation has a net worth at the time of such assignment that
      is equal to or greater than the net worth of Tenant immediately prior to
      such transaction.

              

                 14.2  Transfer By
      Landlord:  Landlord and its successors in interest shall
      have the right to transfer their interest in this Lease and the Project at
      any time and to any person or entity.  In the event of any such
      transfer, the Landlord originally named herein (and, in the case of any
      subsequent transfer, the transferror) from the date of such transfer,
      shall be automatically relieved, without any further act by any person or
      entity, of all liability for the performance of the obligations of the
      Landlord hereunder which may accrue after the date of such
      transfer.  After the date of any such transfer, the term
      "Landlord" as used herein shall mean the transferee of such interest in
      the Premises.

              

              ARTICLE
      15

              

              GENERAL
      PROVISIONS

              

                 15.1  Landlord's Right to
      Enter:  Landlord and its agents may enter the Premises at
      any reasonable time after giving at least 24 hours' prior notice to Tenant
      (and immediately in the case of emergency) for the purpose of: (i)
      inspecting the same; (ii) posting notices of non-responsibility; (iii)
      supplying any service to be provided by Landlord to Tenant; (iv) showing
      the Premises to prospective purchasers, mortgagees or tenants; (v) making
      necessary alterations, additions or repairs; (vi) performing Tenant's
      obligations when Tenant has failed to do so after written notice from
      Landlord; (vii) placing upon the Premises ordinary "for lease" signs or
      "for sale" signs; and (viii) responding to an
      emergency.  Landlord shall have the right to use any and all
      means Landlord may deem necessary and proper to enter the Premises in an
      emergency.  Any entry into the Premises obtained by Landlord in
      accordance with this §15.1
      shall not be a forcible or unlawful entry into, or a detainer of, the
      Premises, or an eviction, actual or constructive, of Tenant from the
      Premises.

              

                 15.2  Surrender of the
      Premises:  Upon the
  expiration
 

    

     

     

    
      
        
        

      

      
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              or
      sooner termination of this Lease, Tenant shall vacate and surrender the
      Premises to Landlord in the same condition as existed at the Commencement
      Date, except for (i) reasonable wear and tear, (ii) damage caused by any
      peril or condemnation, and (iii) contamination by Hazardous Materials for
      which Tenant is not responsible pursuant to §7.2A
      or §7.2B.  In
      this regard, normal wear and tear shall be construed to mean wear and tear
      caused to the Premises by the natural aging process which occurs in spite
      of prudent application of the best standards for maintenance, repair and
      janitorial practices, and does not include items of neglected or deferred
      maintenance.  In any event, Tenant shall cause the following to
      be done prior to the expiration or the sooner termination of this Lease:
      (i) all interior walls shall be painted or cleaned so that they appear
      freshly painted; (ii) all tiled floors shall be cleaned and waxed; (iii)
      all carpets shall be cleaned and shampooed; (iv) all broken, marred,
      stained or nonconforming acoustical ceiling tiles shall be replaced; (v)
      all windows shall be washed; (vi) the HVAC system shall be serviced by a
      reputable and licensed service firm and left in good operating condition
      and repair as so certified by such firm; and (vii) the plumbing and
      electrical systems and lighting shall be placed in good order and repair
      (including replacement of any burned out, discolored or broken light
      bulbs, ballasts, or lenses).  Tenant shall be excused
      from  the foregoing duties if and to the extent they require
      Tenant to perform capital expense replacements which this Lease requires
      Landlord to perform and which would, if Landlord had performed them, have
      been subject to the amortization and payment during the Lease Term
      provisions of Section 5.4.  If Landlord so requests, Tenant
      shall, prior to the expiration or sooner termination of this Lease, (i)
      remove any Tenant's Alterations which Tenant is required to remove
      pursuant to §5.2
      and repair all damage caused by such removal, and (ii) return the Premises
      or any part thereof to its original configuration existing as of the time
      the Premises were delivered to Tenant to the extent required under Section
      5.2.  If the Premises are not so surrendered at the termination
      of this Lease, Tenant shall be liable to Landlord for all costs incurred
      by Landlord in returning the Premises to the required condition, plus
      interest on all costs incurred at the Agreed Interest
      Rate.  Tenant shall indemnify Landlord against loss or liability
      resulting from delay by Tenant in so surrendering the Premises, including,
      without limitation, any claims made by any succeeding tenant or losses to
      Landlord due to lost opportunities to lease to succeeding
      tenants.  Notwithstanding any other provision of this Lease to
      the contrary, Tenant shall not be required to remove, upon expiration or
      sooner termination of the Lease, any Ethernet or telephone cables
      previously installed or installed by it.

              

                 15.3  Holding
      Over:  This Lease shall terminate without further notice
      at the expiration of the Lease Term.  Any holding over by Tenant
      after expiration of the Lease Term shall not constitute a renewal or
      extension of the Lease or give Tenant any rights in or to the Premises
      except as expressly provided in this Lease.  Any holding over
      after such expiration with the written consent of Landlord shall be
      construed to be a tenancy from month to month on the same terms and
      conditions herein specified insofar as applicable except that Base Monthly
      Rent shall be increased to an amount equal to 150% of the Base Monthly
      Rent payable during the last full calendar month of the Lease
      Term.
 	
                 15.4  Subordination:  The
      following provisions shall govern the relationship of this Lease to any
      Security Instrument:

              

              A.  The
      Lease is subject and subordinate to all Security Instruments existing as
      of the Effective Date.  However, if any Lender so requires, this
      Lease shall become prior and superior to any such Security
      Instrument.

              

              B.  At
      Landlord's election, this Lease shall become subject and subordinate to
      any Security Instrument created after the Effective
      Date.  Notwithstanding such subordination, Tenant's right to
      quiet possession of the Premises shall not be disturbed so long as Tenant
      is not in default and performs all of its obligations under this Lease,
      unless this Lease is otherwise terminated pursuant to its
      terms.

              

              C.  Tenant
      shall upon request execute any document or instrument reasonably required
      by any Lender to make this Lease either prior or subordinate to a Security
      Instrument, which may include such other matters as the Lender customarily
      and reasonably requires in connection with such agreements, including
      provisions that the Lender not be liable for (i) the return of any
      security deposit unless the Lender receives it from Landlord, and (ii) any
      defaults on the part of Landlord occurring prior to the time the Lender
      takes possession of the Project in connection with the enforcement of its
      Security Instrument.  Tenant's failure to execute any such
      document or instrument within 10 days after written demand therefore shall
      constitute an Event of Tenant's Default.  Tenant approves as
      reasonable the form of subordination agreement attached to this Lease as
      Exhibit
      G.

              

                 15.5  Mortgagee Protection
      and Attornment:  In the event of any default on the part
      of the Landlord, Tenant will use reasonable efforts to give notice by
      registered mail to any Lender whose name has been provided to Tenant and
      shall offer such Lender a reasonable opportunity to cure the default,
      including time to obtain possession of the Premises by power of sale or
      judicial foreclosure or other appropriate legal proceedings, if such
      should prove necessary to effect a cure.  Tenant shall attorn to
      any purchaser of the Premises at any foreclosure sale or private sale
      conducted pursuant to any Security Instrument encumbering the Premises, or
      to any grantee or transferee designated in any deed given in lieu of
      foreclosure.

              

                 15.6  Estoppel Certificates
      and Financial Statements:  At all times during the Lease
      Term, each party agrees, following any request by the other party,
      promptly to execute and deliver to the requesting party within 10 days
      following delivery of such request an estoppel certificate: (i) certifying
      that this Lease is unmodified and in full force and effect or, if
      modified, stating the nature of such modification and certifying that this
      Lease, as so modified, is in full force and effect, (ii) stating the date
      to which the rent and other charges are paid in advance, if any, (iii)
      acknowledging that there are not, to the certifying party's knowledge, any
      uncured defaults on the part of any party hereunder or, if there are
      uncured defaults, specifying the nature of such defaults, and (iv)
      certifying such other information about the Lease as may be reasonably
      required by the requesting party.  A failure to deliver an
      estoppel certificate within 10 days after delivery of a request therefor
      shall be a conclusive admission that, as of
  the
 

    

     

     

    
      
        
        

      

      
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              date
      of the request for such statement: (i) this Lease is unmodified except as
      may be represented by the requesting party in said request and is in full
      force and effect, (ii) there are no uncured defaults in the requesting
      party's performance, and (iii) no rent has been paid more than 30 days in
      advance.  At any time during the Lease Term Tenant shall, upon
      10 days' prior written notice from Landlord, provide Tenant's most recent
      financial statement and financial statements covering the 24 month period
      prior to the date of such most recent financial statement to any existing
      Lender or to any potential Lender or buyer of the
      Premises.  Such statements shall be prepared in accordance with
      generally accepted accounting principles and, if such is the normal
      practice of Tenant, shall be audited by an independent certified public
      accountant.  Unless otherwise required by Landlord’s Lender or a
      prospective purchaser or mortgagee of the Building, the initial form of
      estoppel certificate to be signed by Tenant is attached hereto as Exhibit
      I.

              

                 15.7  Reasonable
      Consent:  Whenever any party's approval or consent is
      required by this Lease before an action may be taken by the other party,
      such approval or consent shall not be unreasonably withheld, conditioned,
      or delayed.

              

                 15.8  Notices:  Any
      notice required or desired to be given regarding this Lease shall be in
      writing and may be given by personal delivery, by facsimile telecopy, by
      courier service, or by mail.  A notice shall be deemed to have
      been given (i) on the third business day after mailing if such notice was
      deposited in the United States mail, certified or registered, postage
      prepaid, addressed to the party to be served at its Address for Notices
      specified in Section Q or
      Section R
      of the Summary (as applicable), (ii) when delivered if given by personal
      delivery, and (iii) in all other cases when actually received at the
      party's Address for Notices.  Either party may change its
      address by giving notice of the same in accordance with this §15.8,
      provided, however, that any address to which notices may be sent must be a
      California address.

              

                 15.9  Attorneys'
      Fees:  In the event either Landlord or Tenant shall bring
      any action or legal proceeding for an alleged breach of any provision of
      this Lease, to recover rent, to terminate this Lease or otherwise to
      enforce, protect or establish any term or covenant of this Lease, the
      prevailing party shall be entitled to recover as a part of such action or
      proceeding, or in a separate action brought for that purpose, reasonable
      attorneys' fees, court costs, and experts' fees as may be fixed by the
      court.

              

                 15.10  Corporate
      Authority:  If Tenant is a corporation (or partnership),
      each individual executing this Lease on behalf of Tenant represents and
      warrants that he is duly authorized to execute and deliver this Lease on
      behalf of such corporation in accordance with the by-laws of such
      corporation (or partnership in accordance with the partnership agreement
      of such partnership) and that this Lease is binding upon such corporation
      (or partnership) in accordance with its terms.  Each of the
      persons executing this Lease on behalf of a corporation does hereby
      covenant and warrant that the party for whom it is executing this Lease is
      a duly authorized and existing corporation, that it is qualified to do
      business in California, and that the corporation has full right and
      authority to enter into this Lease.
 	
                 15.11  Miscellaneous:  Should
      any provision of this Lease prove to be invalid or illegal, such
      invalidity or illegality shall in no way affect, impair or invalidate any
      other provision hereof, and such remaining provisions shall remain in full
      force and effect.  Time is of the essence with respect to the
      performance of every provision of this Lease in which time of performance
      is a factor.  The captions used in this Lease are for
      convenience only and shall not be considered in the construction or
      interpretation of any provision hereof.  Any executed copy of
      this Lease shall be deemed an original for all purposes.  This
      Lease shall, subject to the provisions regarding assignment, apply to and
      bind the respective heirs, successors, executors, administrators and
      assigns of Landlord and Tenant.  "Party" shall mean Landlord or
      Tenant, as the context implies.  If Tenant consists of more than
      one person or entity, then all members of Tenant shall be jointly and
      severally liable hereunder.  This Lease shall be construed and
      enforced in accordance with the laws of the State of
      California.  The language in all parts of this Lease shall in
      all cases be construed as a whole according to its fair meaning, and not
      strictly for or against either Landlord or Tenant.  When the
      context of this Lease requires, the neuter gender includes the masculine,
      the feminine, a partnership or corporation or joint venture, and the
      singular includes the plural.  The terms "shall", "will" and
      "agree" are mandatory.  The term "may" is
      permissive.  When a party is required to do something by this
      Lease, it shall do so at its sole cost and expense without right of
      reimbursement from the other party unless a provision of this Lease
      expressly requires reimbursement.  Landlord and Tenant agree
      that (i) the gross leasable area of the Premises includes any atriums,
      depressed loading docks, covered entrances or egresses, and covered
      loading areas, (ii) each has had an opportunity to determine to its
      satisfaction the actual area of the Project and the Premises, (iii) all
      measurements of area contained in this Lease are conclusively agreed to be
      correct and binding upon the parties, even if a subsequent measurement of
      any one of these areas determines that it is more or less than the amount
      of area reflected in this Lease, and (iv) any such subsequent
      determination that the area is more or less than shown in this Lease shall
      not result in a change in any of the computations of rent, improvement
      allowances, or other matters described in this Lease where area is a
      factor.  Where a party hereto is obligated not to perform any
      act, such party is also obligated to restrain any others within its
      control from performing said act, including the Agents of such
      party.  Landlord shall not become or be deemed a partner or a
      joint venturer with Tenant by reason of the provisions of this
      Lease.

              

                 15.12  Termination by
      Exercise of Right:  If this Lease is terminated pursuant
      to its terms by the proper exercise of a right to terminate specifically
      granted to Landlord or Tenant by this Lease, then this Lease shall
      terminate 30 days after the date the right to terminate is properly
      exercised (unless another date is specified in that part of the Lease
      creating the right, in which event the date so specified for termination
      shall prevail), the rent and all other charges due hereunder shall be
      prorated as of the date of termination, and neither Landlord nor Tenant
      shall have any further rights or obligations under this Lease except for
      those that have accrued prior to the date of termination or those
      obligations which this Lease specifically provides are to survive
      termination.  This §15.12
      does not apply to a
 

    

     

     

    
      
        
        

      

      
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              termination
      of this Lease by Landlord as a result of an Event of Tenant's
      Default.

              

                 15.13  Brokerage
      Commissions:  Each party hereto (i) represents and
      warrants to the other that it has not had any dealings with any real
      estate brokers, leasing agents or salesmen, or incurred any obligations
      for the payment of real estate brokerage commissions or finder's fees
      which would be earned or due and payable by reason of the execution of
      this Lease, other than to the Retained Real Estate Brokers described in
      Section S
      of the Summary, and (ii) agrees to indemnify, defend, and hold harmless
      the other party from any claim for any such commission or fees which
      result from the actions of the indemnifying party.  Landlord
      shall be responsible for the payment of any commission owed to the
      Retained Real Estate Brokers if there is a separate written commission
      agreement between Landlord and the Retained Real Estate Brokers for the
      payment of a commission as a result of the execution of this
      Lease.

              

                 15.14  Force
      Majeure:  Any prevention, delay or stoppage due to
      strikes, lock-outs, inclement weather, labor disputes, inability to obtain
      labor, materials, fuels or reasonable substitutes therefore, governmental
      restrictions, regulations, controls, action or inaction, civil commotion,
      fire or other acts of God, and other causes beyond the reasonable control
      of the party obligated to perform (except financial inability) shall
      excuse the performance, for a period equal to the period of any said
      prevention, delay or stoppage, of any obligation hereunder except the
      obligation of Tenant to pay rent or any other sums due
      hereunder.

              

                 15.15  Entire
      Agreement:  This Lease constitutes the entire agreement
      between the parties, and there are no binding agreements or
      representations between the parties except as expressed
      herein.  Tenant acknowledges that neither Landlord nor
      Landlord's Agents has made any legally binding representation or warranty
      as to any matter except those expressly set forth herein, including any
      warranty as to (i) whether the Premises may be used for Tenant's intended
      use under existing Law, (ii) the suitability of the Premises or the
      Project for the conduct of Tenant's business, or (iii) the condition of
      any improvements.  There are no oral agreements between Landlord
      and Tenant affecting this Lease, and this Lease supercedes and cancels any
      and all previous negotiations, arrangements, brochures, agreements and
      understandings, if any, between Landlord and Tenant or displayed by
      Landlord to Tenant with respect to the subject matter of this
      Lease.  This instrument shall not be legally binding until it is
      executed by both Landlord and Tenant.  No subsequent change or
      addition to this Lease shall be binding unless in writing and signed by
      Landlord and Tenant.

              

              15.16  USA Patriot Act
      and Anti-Terrorism Laws.

              

              (j)           Tenant
      represents and warrants to, and covenants with, Landlord that neither
      Tenant nor any of its respective constituent owners or affiliates
      currently are, or shall be at any time during the Term hereof, in
      violation of any laws relating to terrorism or money laundering
      (collectively, the “Anti-Terrorism Laws”), including without limitation
      Executive Order No. 13224 on Terrorist Financing, effective September 24,
      2001 and relating to Blocking Property and Prohibiting Transactions With
      Persons Who Commit, Threaten to Commit, or Support Terrorism
      (the
 	“Executive
      Order”) and/or the Uniting and Strengthening America by Providing
      Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
      (Public Law 107-56) (the “USA Patriot Act”).

              

              (k)           Tenant
      covenants with Landlord that neither Tenant nor any of its respective
      constituent owners or affiliates is or shall be during the Term hereof a
      “Prohibited Person,” which is defined as follows:  (i) a person
      or entity that is listed in the Annex to, or is otherwise subject to, the
      provisions of the Executive Order; (ii) a person or entity owned or
      controlled by, or acting for or on behalf of, any person or entity that is
      listed in the Annex to, or is otherwise subject to the provisions of, the
      Executive Order; (iii) a person or entity with whom Landlord is prohibited
      from dealing with or otherwise engaging in any transaction by any
      Anti-Terrorism Law, including without limitation the Executive Order and
      the USA Patriot Act; (iv) a person or entity who commits, threatens or
      conspires to commit or support “terrorism” as defined in Section 3(d) of
      the Executive Order; (v) a person or entity that is named as a “specially
      designated national and blocked person” on the then-most current list
      published by the U.S. Treasury Department Office of Foreign Assets Control
      at its official website,
      http://www.treas.gov/offices/eotffc/ofac/sdn/t11sdn.pdf, or at any
      replacement website or other replacement official publication of such
      list; and (vi) a person or entity who is affiliated with a person or
      entity listed in items (i) through (v) above.

              

              (l)           At
      any time and from time to time during the Term, Tenant shall deliver to
      Landlord, within ten (10) days after receipt of a written request
      therefor, a written certification or such other evidence reasonably
      acceptable to Landlord evidencing and confirming Tenant’s compliance with
      this Section 15.16.

              

                  IN
      WITNESS WHEREOF, Landlord and Tenant have executed this Lease with the
      intent to be legally bound thereby, to be effective as of the Effective
      Date.

               

              LANDLORD:

              

              OA
      OAKCREEK, LLC, a Delaware limited liability company

              

              By:   Orchard
      AEW Fund I, LLC, a Delware limited

              liability
      company, its sole member

              

              By:  Orchard
      A Investor, LLC, a California limited

              liability
      company, its Operating Manager

              
                By:  /s/ Michael
      Biggar

                

                It’s:  Manager

                

                Dated:
      4/28/08

                

                TENANT:

                

                Proxim
      Wireless Corporation, a Delaware corporation

                

                By:
      /s/ Pankaj S.
      Manglik

                

                Pankaj
      Manglik

                Typed
      or printed name

                

                Title:
      CEO

                

                By:
      /s/ Brian J.
      Sereda

                

                Brian
      Sereda

                 

              

            

    

     

     

    
      
         

      

      
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      Typed or
printed name

      

      Title:
CFO

      

      Dated:
April 25,
2008

     

     

     

    
      
         

      

      
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      FIRST
ADDENDUM TO LEASE

      

      

      THIS FIRST ADDENDUM is dated
for reference purposes as April 15, 2008, and is made a part of that Lease
Agreement (the "Lease") dated April 15, 2008, by and between OA OAKCREEK,
L.L.C., a Delaware
limited liability company ("Landlord") and Proxim Wireless Corporation, a
Delaware corporation ("Tenant") affecting certain real property commonly known
as 804 Buckeye Court, Milpitas, California. Capitalized terms used in this First
Addendum to Lease without definition shall have the meanings given to those
terms in the Lease.  Landlord and Tenant agree to the following
Addendum to the Lease, which shall be a part of the Lease:

      

      1.           Condition of
Premises:   Landlord shall deliver the Premises and
building systems (including, without limitation, all HVAC equipment and other
utility facilities, and fire extinguisher equipment) in good working condition,
including the roof in watertight condition.  All mechanical,
electrical, HVAC, plumbing, and other utility equipment and roll up doors shall
be in good working condition and operable. Tenant’s sole remedy and Landlord’s
sole responsibility under this warranty shall be to rectify any defective item
of which Tenant supplies written notification, specifying the manner in which
this warranty has been breached, within 120  days after the
Commencement Date, at Landlord’s sole cost and expense (and not as a part of
Common Operating Expenses).  Except as otherwise provided in the
Lease, Landlord makes no other warranties regarding condition of the Premises,
and requiring Landlord to repair defects to return the said matters to the
represented condition shall be Tenant’s sole remedy for any breach of this
provision.  Notwithstanding the foregoing, the warranty on the
watertight condition of the roof shall extend until the later of 120 days after
the Commencement Date or five (5) days after the first significant rain of 2008
occuring after the Commencement Date, but not in any event after December 31,
2008.  A “significant” rain shall be a day during which sufficient
rain falls that it would be reasonably likely that any existing leaks would
result in water penetration of the roof membrane, provided further, that no roof
leak or other failure of condition of any system or equipment which occurs due
to the acts or omissions of the Tenant shall be covered under this
warranty.

      

      2.           Landlord
Default.  Without limiting its other rights set forth in the
Lease, if Landlord shall have failed to perform any term, covenant, or condition
of the Lease and Landlord shall have failed to cure such breach within 30 days
after written notice from Tenant specifying the nature of such breach where such
breach could reasonably be cured within said 30 day period, or if such breach
could not be reasonably cured within said 30 day period, Landlord shall have
failed to commence such cure within said 30 day period and thereafter continue
with due diligence to prosecute such cure to completion within such time period
as is reasonably needed, Tenant shall have the right to pursue legal remedies
for damages.  At Tenant’s option before pursuing a damage remedy,
Tenant may give Landlord a second notice after the time for performance of the
initial notice has run out, in which Tenant shall notify Landlord that it
intends to use self-help to cure Landlord’s failure to perform identified in the
initial notice, shall specify what it is that Tenant proposes to do to cure the
failure to perform, and states the cost thereof.  Tenant shall have
the right to perform such self help to cure Landlord’s failure to perform if
Landlord fails to perform within fifteen (15) days after said second notice (or
if Landlord’s failure to perform cannot reasonably be cured within said 15 day
period, Landlord shall have failed to commence such cure within said 15 day
period and thereafter continue with due diligence to prosecute such cure to
completion within such time period as is reasonably needed, not to exceed a
further thirty (30) days.

      

      3.           Tenant Payment for Items
listed in Section B of Exhibit C:  Section B of Exhibit C
contains a list of items which are excluded from Landlord’s scope of work but
may nevertheless be desired by Tenant.  Landlord will obtain costs for
each of these items from Landlord’s general contractor and present the list of
costs to Tenant.  In the event that Tenant requests that Landlord have
its contractor construct and/or provide any of these items, Tenant shall do so
in writing, agree in writing to pay the cost thereof, and pay to Landlord, at
the time of the request, the cost of each additional item
requested.  Upon receipt of such request and of advance payment of the
costs thereof, Landlord shall cause same to be constructed.  Landlord
shall not be obligated to construct any of the Section B items unless payment is
received from Tenant in advance.

       

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
 

      4.           Additional HVAC Capacity in
Room Labeled “Manufacturing Area” on Exhibit C-1.  Under
Heading “B” in Exhibit C, Tenant and Landlord have listed items which, upon
Tenant’s request, Landlord will provide costs for and then construct if Tenant
agrees to pay such costs.  Tenant and Landlord have already agreed
that No. 11 under Heading B will be constructed by Landlord for Tenant on the
following basis:  The “Manufacturing Area” will be supplied with a
total of 35 tons of HVAC capacity.  As indicated in Exhibit C,
Landlord, at Landlord’s cost, will pay for 25 tons of
capacity.  Tenant, at Tenant’s cost, shall pay for 10 tons of capacity
at a fixed cost of $25,000.  Tenant’s payment of $25,000 for this
additional capacity shall be tendered to Landlord within five (5) business days
of execution of this Lease.

      

      

        
          	
                  LANDLORD:

                	
                  TENANT:

                
	 
      	 
      
	
                  OA
      OAKCREEK, LLC, a Delaware limited

                	
                  Proxim
      Wireless Corporation, a

                
	
                  liability
      company

                	
                  Delaware
      corporation

                
	 
      	 
      
	
                  By:   Orchard
      AEW Fund I, LLC, a Delware limited

                	
                  By:  /s/ Pankaj S.
      Manglik

                
	
                  liability
      company, its sole member

                	 
      
	 
      	
                  Pankaj S. Manglik,
      CEO

                
	
                  By:  Orchard
      A Investor, LLC, a California limited

                	 
      
	
                  liability
      company, its Operating Manager

                	
                  By:  /s/ Brian J.
      Sereda

                
	 
      	 
      
	
                  By:  /s/ Michael
      Biggar

                	
                  Brian J. Sereda,
      CFO

                
	 
      	 
      
	
                  Manager

                	 
      
	 
      	 
      
	
                  It’s:
      4/28/08

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