Document:

Exhibit 10.25

 

 

 

THE
EXECUTIVE NONQUALIFIED EXCESS PLAN

PLAN
DOCUMENT

 

 

	
   

  	
  © 2000 Executive Benefit Services, Inc.

  
	
   

  	
  434 Fayetteville Street, Suite 1160

  
	
   

  	
  Raleigh, NC 27601

  

 

 

TABLE OF CONTENTS

 

THE EXECUTIVE NONQUALIFIED EXCESS PLAN

 

	
   

  	
   

  
	
  Section 1.

  	
  Purpose

  
	
   

  	
   

  
	
  Section 2.

  	
  Definitions

  
	
  2.1

  	
  “Accrued Benefit”

  
	
  2.2

  	
  “Active Participant”

  
	
  2.3

  	
  “Adoption Agreement”

  
	
  2.4

  	
  “Adjustment Date”

  
	
  2.5

  	
  “Beneficiary”

  
	
  2.6

  	
  “Board”

  
	
  2.7

  	
  “College Education Account”

  
	
  2.8

  	
  “Committee”

  
	
  2.9

  	
  “Compensation”

  
	
  2.10

  	
  “Deferred Compensation Account”

  
	
  2.11

  	
  “Dependent Subaccount”

  
	
  2.12

  	
  “Disability”

  
	
  2.13

  	
  “Effective Date”

  
	
  2.14

  	
  “Eligible Dependent”

  
	
  2.15

  	
  “Employee”

  
	
  2.16

  	
  “Employer”

  
	
  2.17

  	
  “Employer Matching Credits”

  
	
  2.18

  	
  “Employer Performance Incentive Credits”

  
	
  2.19

  	
  “Independent Contractor”

  
	
  2.20

  	
  “Normal Retirement Age”

  
	
  2.21

  	
  “Participant”

  
	
  2.22

  	
  “Participating Employer”

  
	
  2.23

  	
  “Plan”

  
	
  2.24

  	
  “Plan Administrator”

  
	
  2.25

  	
  “Plan Year”

  
	
  2.26

  	
  “Qualified Distribution Event”

  
	
  2.27

  	
  “Regular In-Service Withdrawals Account”

  
	
  2.28

  	
  “Retire” of “Retirement”

  
	
  2.29

  	
  “Salary Deferral Agreement”

  
	
  2.30

  	
  “Salary Deferral Credits”

  
	
  2.31

  	
  “Service”

  
	
  2.32

  	
  “Sponsor”

  
	
  2.33

  	
  “Spouse”
  or “Surviving Spouse”

  
	
  2.34

  	
  “Trust”

  
	
  2.35

  	
  “Trustee”

  
	
  2.36

  	
  “Years of Service”

  
	
   

  
	
  Section 3.

  	
   Credits to Deferred
  Compensation Account

  
			

 

 

	
  3.1

  	
  Salary Deferral Credits

  
	
  3.2

  	
  Employer Matching Credits

  
	
  3.3

  	
  Employer Performance Incentive Credits

  
	
   

  	
   

  
	
  Section 4. 

  	
  Qualifiying Distribution Events

  
	
  4.1

  	
  Death of a Participant

  
	
  4.2

  	
  Disability

  
	
  4.3

  	
  Termination of Service

  
	
  4.4

  	
  Retirement

  
	
   

  	
   

  
	
  Section 5.

  	
  In-Service Withdrawals

  
	
  5.1

  	
  Regular In-Service Withdrawals

  
	
  5.2

  	
  Financial Hardship Withdrawals

  
	
  5.3

  	
  “Haircut” Withdrawals

  
	
  5.4

  	
  College Education Withdrawals

  
	
   

  	
   

  
	
  Section 6. 

  	
  Qualified Distribution Events Payment Options

  
	
  6.1

  	
  Payment Options

  
	
  6.2

  	
  Prepayment

  
	
  6.3

  	
  Benefit Exchange

  
	
   

  	
   

  
	
  Section 7. 

  	
  Vesting

  
	
   

  	
   

  
	
  Section 8. 

  	
  Account; Deemed Investment; Adjustment of Accounts

  
	
  8.1

  	
  Account

  
	
  8.2

  	
  Deemed Investments

  
	
  8.3

  	
  Adjustments to Deferred Compensation
  Accounts

  
	
   

  	
   

  
	
  Section 9. 

  	
  Administration by Committee

  
	
  9.1

  	
  Membership of Committee

  
	
  9.2

  	
  Committee officers; Subcommittee

  
	
  9.3

  	
  Committee meetings

  
	
  9.4

  	
  Transaction of business

  
	
  9.5

  	
  Committee records

  
	
  9.6

  	
  Establishment of rules

  
	
  9.7

  	
  Conflicts of interest

  
	
  9.8

  	
  Correction of errors

  
	
  9.9

  	
  Authority to interpret Plan

  
	
  9.10

  	
  Third party advisors

  
	
  9.11

  	
  Compensation of members

  
	
  9.12

  	
  Expense reimbursement

  
	
  9.13

  	
  Indemnification

  
	
   

  	
   

  
	
  Section 10. 

  	
  Contractual Liability; Trust

  
	
  10.1

  	
  Contractual Liability

  
	
  10.2

  	
  Trust

  
	
   

  	
   

  
	
  Section 11. 

  	
  Allocation of Responsibilities

  
						

 

 

	
  11.1

  	
  Board

  
	
  11.2

  	
  Committee

  
	
  11.3

  	
  Plan Administrator

  
	
   

  	
   

  
	
  Section 12. 

  	
  Benefits Not Assignable; Facility of Payments

  
	
  12.1

  	
  Benefits not assignable

  
	
  12.2

  	
  Payments to minors and others

  
	
   

  	
   

  
	
  Section 13. 

  	
  Beneficiary

  
	
   

  	
   

  
	
  Section 14. 

  	
  Amendment and Termination of Plan

  
	
   

  	
   

  
	
  Section 15. 

  	
  Communication to Participants

  
	
   

  	
   

  
	
  Section 16. 

  	
  Claims Procedure

  
	
  16.1

  	
  Filing of a claim for benefits

  
	
  16.2

  	
  Notification to claimant of decision

  
	
  16.3

  	
  Procedure for review

  
	
  16.4

  	
  Decision on review

  
	
  16.5

  	
  Action by authorized representative of
  claimant

  
	
   

  	
   

  
	
  Section 17. 

  	
  Miscellaneous Provisions

  
	
  17.1

  	
  Set off

  
	
  17.2

  	
  Notices

  
	
  17.3

  	
  Lost distributees

  
	
  17.4

  	
  Reliance on data

  
	
  17.5

  	
  Receipt and release for payments

  
	
  17.6

  	
  Headings

  
	
  17.7

  	
  Continuation of employment

  
	
  17.8

  	
  Merger or consolidation

  
	
  17.9

  	
  Construction

  
						

 

 

 

THE
EXECUTIVE NONQUALIFIED EXCESS PLAN

 

Section 1.                                          Purpose:

 

By execution
of the Adoption Agreement, the Employer has adopted the Plan set forth herein
to provide a means by which certain management Employees and Independent
Contractors of the Employer may elect to defer receipt of current Compensation
from the Employer in order to provide Retirement and other benefits on behalf
of such Employees and Independent Contractors. 
The Plan is not intended to be a tax-qualified retirement plan under
Section 401(a) of the Internal Revenue Code (the “Code”).  The Plan is intended to be an unfunded plan
maintained primarily for the purpose of providing deferred compensation
benefits for a select group of management or highly compensated Employees under
Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income
Security Act of 1974.

 

Section 2.                                          Definitions:

 

As used in the
Plan, including this Section 2, references to one gender shall include the
other and, unless otherwise indicated by the context:

 

2.1                               “Accrued Benefit”  shall mean, with respect to each
Participant, the balance credited to his Deferred Compensation Account.

 

2.2                               “Active Participant” shall mean, with respect to any day or date, a
Participant who is in Service on such day or date; provided, that a Participant
who is in Service shall cease to be an Active Participant immediately upon a
determination by the Committee that the Participant has ceased to be an
Employee or Independent Contractor.

 

2.3                               “Adoption Agreement” shall mean the written agreement pursuant to which
the Employer adopts the Plan.  The
Adoption Agreement is a part of the Plan as applied to the Employer.

 

2.4                               “Adjustment Date”
shall mean the date designated in the Adoption Agreement for crediting the
amount of any Salary Deferral Credits, Employer Matching Credits and Employer
Performance Incentive Credits to each Deferred Compensation Account.

 

1

 

2.5          “Beneficiary” shall mean the person, persons, entity
or entities designated or determined pursuant to the provisions of
Section 13 of the Plan.

 

2.6          “Board”
shall mean the Board of Directors of the Employer, if the Employer is a
corporation.  If the Employer is not a
corporation, “Board” shall mean the Employer.

 

2.7                               “College Education Account” shall mean the separate
account to be kept for each Participant and to be divided into one or more
Dependent Subaccounts, as described in Section 5.4.

 

2.8                               “Committee”
shall mean the administrative committee provided for in Section 9.

 

2.9                               “Compensation”
shall have the meaning designated in the Adoption Agreement.

 

2.10        “Deferred Compensation Account” shall mean the
separate account to be kept for each Participant, as described in Sections 3
and 8.  To the extent applicable, the
Deferred Compensation Account may be credited with Salary Deferral Credits,
Employer Matching Credits and Employer Performance Incentive Credits.

 

2.11        “Dependent
Subaccount”  shall mean each separate subaccount to
be kept for each Participant as part of his College Education Account, as
described in Section 5.4.  To the
extent applicable, each Dependent Subaccount may be credited with Salary
Deferral Credits, Employer Matching Credits, and Employer Performance Incentive
Credits.

 

2.12        “Disability” shall mean the inability of a
Participant to perform his regular duties with the Employer or any other duties
which the Employer is willing to assign to him by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or to be of long continued or indefinite duration.  The determination of the existence or nonexistence
of Disability shall be made by the Committee in a nondiscriminatory manner
pursuant to an examination by a medical doctor selected or approved by the
Committee.

 

2

 

2.13        “Effective Date” shall be the date designated in the
Adoption Agreement as of which the Plan first becomes effective.

 

2.14        “Eligible
Dependent”  shall mean any child (including any
legally adopted child) of a Participant who has not attained age 18 and who the
Participant designates as an Eligible Dependent in his Salary Deferral
Agreement; provided, however, that the Committee in its discretion may approve
the designation of an individual other than the child of a Participant as an
Eligible Dependent.

 

2.15        “Employee” shall mean an individual in the Service
of the Employer if the relationship between the individual and the Employer is
the legal relationship of employer and employee and if the individual is a
highly compensated or management employee of the Employer.  An individual shall cease to be an Employee
upon the first to occur of the following: (i) the Employee’s termination of
Service; or (ii) a determination by the Committee that the Employee no longer
meets the eligibility requirements for participation in the Plan.

 

2.16        “Employer” shall mean the Employer identified in the
Adoption Agreement, and any Participating Employer which adopts this Plan.  The Employer may be a corporation, a
partnership or sole proprietorship.  All
references herein to the Employer shall be applied separately to each such
Employer as if the Plan were solely the Plan of that Employer.

 

2.17        “Employer
Matching Credits”
shall mean the amounts credited to the Participant’s Deferred Compensation
Account by the Employer pursuant to the provisions of Section 3.2.

 

2.18        “Employer Performance Incentive
Credits”
shall mean the amounts credited to the Participant’s Deferred Compensation
Account by the Employer pursuant to the provisions of Section 3.3.

 

2.19        “Independent
Contractor”  shall mean an individual in the
Service of the Employer if the relationship between the individual and the
Employer is not the legal relationship of employer and employee.  An individual shall cease to be an
Independent

 

3

 

Contractor upon the termination of the
Independent Contractor’s Service.  An
Independent Contractor shall include a director of the Employer who is not an
Employee.

 

2.20        “Normal
Retirement Age”
of a Participant shall mean the age designated in the Adoption Agreement.  The “Normal Retirement Date” of a Participant
shall mean the date the Participant attains his Normal Retirement Age.

 

2.21        “Participant” shall mean with respect to any Plan
Year an Employee or Independent Contractor who has been designated by the
Committee as a Participant and who has entered the Plan or who has an Accrued
Benefit under the Plan. An Employee or Independent Contractor designated by the
Committee as a Participant who has not otherwise entered the Plan shall enter
the Plan and become a Participant as of the date determined by the
Committee.  A Participant who separates
from Service with the Employer and who later returns to Service will not be
eligible to defer Compensation under the Plan except upon satisfaction of such
terms and conditions as the Committee shall establish upon the Participant’s
return to Service, whether or not the Participant shall have an Accrued Benefit
remaining under the Plan on the date of his return to Service.

 

2.22        “Participating
Employer”
shall mean any trade or business (whether or not incorporated) which adopts
this Plan with the consent of the Employer identified in the Adoption
Agreement.

 

2.23        “Plan” shall mean The Executive Nonqualified Excess
Plan, as herein set out or as duly amended. 
The name of the Plan as applied to the Employer shall be designated in
the Adoption Agreement.

 

2.24        “Plan
Administrator”
shall mean the person designated in the Adoption Agreement.  If the Plan Administrator designated in the
Adoption Agreement is unable to serve, the Employer shall be the Plan
Administrator.

 

2.25        “Plan Year” shall mean the twelve-month period ending
on the last day of the month designated in the Adoption Agreement.

 

4

 

2.26        “Qualifying
Distribution Event”  shall mean the Participant’s
Retirement or the termination of Participant’s Service with the Employer for
any reason, including as a result of his death or Disability.

 

2.27        “Regular In-Service Withdrawals
Account”
shall mean the separate account to be kept for each Participant, as described
in Section 5.1.  To the extent
applicable, the Regular In-Service Withdrawals Account may be credited with
Salary Deferral Credits.

 

2.28        “Retire” or
“Retirement”shall mean Retirement within the meaning of Section 4.4.

 

2.29        “Salary
Deferral Agreement”
shall mean a written agreement entered into between a Participant and the
Employer pursuant to the provisions of Section 3.

 

2.30        “Salary
Deferral Credits”
shall mean the amounts credited to the Participant’s Deferred Compensation
Account by the Employer pursuant to the provisions of Section 3.

 

2.31        “Service” shall mean employment by the Employer as
an Employee.  If the Participant is an
Independent Contractor, “Service” shall mean the period during which the
contractual relationship exists between the Employer and the Participant.

 

2.32        “Sponsor” shall mean Executive Benefit Services,
Inc.

 

2.33        “Spouse” or “Surviving
Spouse” shall mean, except as otherwise provided in the Plan, the
legally married spouse or surviving spouse of a Participant.

 

2.34        “Trust” shall mean the trust fund established
pursuant to Section 10.2, if designated by the Employer in the Adoption
Agreement.

 

2.35        “Trustee” shall mean the trustee, if any, named in
the agreement establishing the Trust and such successor or additional trustee
as may be named pursuant to the terms of the agreement establishing the Trust.

 

2.36        “Years of
Service”
shall mean each Plan Year of Service completed by the Participant.  For vesting purposes, Years of Service shall
be calculated from the date designated in the Adoption Agreement.

 

5

 

Section 3.                                          Credits to
Deferred Compensation Account:

 

3.1                               Salary Deferral Credits:  To the extent provided in the Adoption Agreement, each Active
Participant may elect, by entering into a Salary Deferral Agreement with the
Employer, to reduce his Compensation from the Employer by a dollar amount or
percentage specified in the Salary Deferral Agreement.  The amount of the Participant’s Salary Reduction
Credit shall be credited by the Employer to the Deferred Compensation Account
maintained for the Participant pursuant to Section 8.  The following special provisions shall apply
with respect to the Salary Deferral Credits of a Participant:

 

3.1.1                        The
Employer shall credit to the Participant’s Deferred Compensation Account on
each Adjustment Date an amount equal to the total Salary Reduction Credit for
the period ending on such Adjustment Date.

 

3.1.2                        An
election pursuant to Section 3.1 shall be made by the Participant by
executing and delivering a Salary Deferral Agreement to the Committee.  The Salary Deferral Agreement shall become
effective with respect to such Participant as of the first full payroll period
commencing on or immediately following the January 1 which occurs after
the date such Salary Deferral Agreement is received by the Committee; provided,
that a Participant who first becomes a Participant in the Plan during a Plan
Year may enter into a Salary Deferral Agreement to be effective as of the first
payroll period next following the date he enters the Plan.  A Participant’s election shall continue in
effect, unless earlier modified by the Participant, until the Service of the
Participant is terminated, or, if earlier, until the Participant ceases to be
an Active Participant under the Plan.

 

3.1.3                        A
Participant may unilaterally modify a Salary Deferral Agreement (either to
increase or decrease the portion of his future Compensation which is subject to
salary deferral within the percentage limits set forth in Section 3.1) by
providing a written modification of the Salary Deferral Agreement to the
Employer.  The modification shall become
effective as of the first full payroll period commencing on or immediately
following the January 1 which occurs after the date such written modification
is received by the Committee.  The
Participant may terminate the Salary Deferral Agreement effective as of the
date designated in the Adoption Agreement.

 

3.1.4                        The
Committee may from time to time establish policies or rules governing the
manner in which Salary Deferral Credits may be made.

 

6

 

3.2                               Employer Matching Credits:  If designated by the Employer in the
Adoption Agreement, as of each Adjustment Date, the Employer shall cause the
Committee to credit to the Deferred Compensation Account of each Participant an
Employer matching credit in accordance with the Adoption Agreement.

 

3.3                               Employer Performance Incentive Credits:  If designated by the Employer in the
Adoption Agreement, the Employer may credit to the Plan for such Plan Year any
amount as the Board in its discretion shall determine.  The Committee shall have the discretion to
credit to the Deferred Compensation Account of each Active Participant an amount
of the Employer Performance Incentive Credit for the Plan Year as directed by
the Employer.

 

Section 4.                                          Qualifying
Distribution Events:

 

4.1                               Death of a Participant:  If a Participant dies while in Service, the
Employer shall pay a benefit to the Participant’s Beneficiary in the amount
designated in the Adoption Agreement. 
Payment of such benefit shall be made by the Employer pursuant to
Section 6.  If a Participant dies
following his Retirement or termination of Service for any reason, including
Disability, and before all payments to him under the Plan have been made, the
balance of the Participant’s vested Accrued Benefit shall be paid by the
Employer to the Participant’s Beneficiary pursuant to Section 6, and such
balance shall be determined as of the commencement date of the payments.

 

4.2                               Disability:  If a
Participant suffers a Disability while in Service prior to his Normal
Retirement Date, he shall terminate Service with the Employer as of the date of
the establishment of his Disability, whereupon he shall commence receiving
payment of his vested Accrued Benefit, determined as of the commencement date
of the payments.  Such benefit shall be
paid by the Employer as provided in Section 6.

 

4.3                               Termination of Service:  If the Service of a Participant with the Employer shall be
terminated for any reason other than Retirement, Disability or death, his
vested Accrued Benefit shall be paid to him by the Employer as provided in
Section 6, and such

 

7

 

Accrued Benefit shall be determined as of the
commencement date of the payments.  If a
Participant’s Accrued Benefit is not fully vested at his termination of
employment, he shall forfeit that portion of his Accrued Benefit that is not
fully vested.  If he subsequently
returns to Service with the Employer, he shall be treated as a new Participant
for purposes of determining the vested portion of his Accrued Benefit.

 

4.4          Retirement:

 

4.4.1                        Normal Retirement:  A
Participant who is in Service shall be eligible to Retire from Service at his
Normal Retirement Date and commence receiving payment of his Accrued Benefit,
determined as of the commencement date of the payments.  Payment of such benefit shall be made by the
Employer pursuant to Section 6.

 

4.4.2                        Early Retirement: 
If so designated by the Employer in the Adoption Agreement, and subject
to the requirements for early retirement set forth therein, a Participant may
elect early retirement effective on any date prior to his Normal Retirement
Date by filing 30 days’ written notice with the Committee before such
date.  The Participant shall commence
receiving payment of his Accrued Benefit determined as of the commencement date
of the payments. Such benefit shall be paid by the Employer as provided in
Section 6.

 

4.4.3                        Delayed Retirement:  If a Participant shall remain in Service
following his Normal Retirement Date, his Retirement date shall be the date he
actually terminates Service for reasons other than death or Disability,
whereupon he shall commence receiving payment of his Accrued Benefit,
determined as of the commencement date of the payments.  Payment of such benefit shall be made by the
Employer pursuant to Section 6. 
During the period that such Participant remains in Service pursuant to
this Section 4.4.3, he shall continue to be a Participant for each Plan
Year in which he meets the requirements therefor.  If an Employee or Independent Contractor not otherwise a
Participant becomes eligible to enter the Plan following his Normal Retirement
Date, the provisions of this Section 4.4.3 shall apply in determining his
Retirement date.

 

Section 5.  In-Service
Withdrawals:

 

5.1                               Regular In-Service Withdrawals:  If the Employer designates in the
Adoption Agreement that regular in-service withdrawals shall be permitted under
the Plan, a Participant may make an irrevocable election in the Salary Deferral
Agreement to withdraw a

 

8

 

designated amount from his Deferred
Compensation Account at the specified time or times designated by the
Participant in the Salary Deferral Agreement, and the Participant’s Regular
In-Service Withdrawals Account shall be credited in an amount equal to the
amount so designated for regular in-service withdrawals.  The following special provisions shall apply
with respect to the regular in-service withdrawals:

 

5.1.1                        The
Regular In-Service Withdrawals Account shall be established, adjusted for
payments, credited with Salary Deferral Credits, Employer Matching Credits, and
Employer Performance Incentive Credits, and credited or debited for deemed
investment gains or losses in the same manner and at the same time as such
adjustments are made to the Deferred Compensation Account under Section 8
and in accordance with the rules and elections in effect under Section 8.

 

5.1.2                        Notwithstanding
any provision in this Section 5 to the contrary, if Participant incurs a
Qualifying Distribution Event prior to the date on which the entire balance of
his Regular In-Service Withdrawals Account has been distributed to him, then
the balance in the Regular In-Service Withdrawals Account on the date of the
Qualifying Distribution Event shall be combined with the Participant’s Deferred
Compensation Account and distributed to him in the same manner and at the same
time as his Deferred Compensation Account is distributed to him under
Section 6 and in accordance with the rules and elections in effect under
Section 6.

 

5.2                               Financial Hardship Withdrawals:  A distribution of the Deferred Compensation
Account may be made to a Participant on account of financial hardship, subject
to the following provisions:

 

5.2.1                        A
Participant may, at any time prior to his Retirement or termination of Service
for any reason, including Disability, make application to the Committee to
receive a distribution in a lump sum of all or a portion of the total vested
amount credited to his Deferred Compensation Account (determined as of the date
the distribution, if any, is made under this Section 5.2) because of an
unforeseeable emergency that results in severe financial hardship to the Participant.
 A distribution because of an
unforeseeable emergency shall not exceed the amount required to meet the
immediate financial need created by the unforeseeable emergency and not
otherwise reasonably available from other resources of the Participant.  Examples of an unforeseeable emergency shall
include but shall not be limited to those financial needs arising on account of
a sudden or unexpected illness or accident of the Participant or of a dependent
of the Participant, loss of the Participant’s property due to casualty, or
other similar

 

9

 

extraordinary
and unforeseeable circumstances arising as a result of events beyond the
control of the Participant.

 

5.2.2                        The
Participant’s request for a distribution on account of financial hardship must
be made in writing to the Committee. 
The request must specify the nature of the financial hardship, the total
amount requested to be distributed from the Deferred Compensation Account, and
the total amount of the actual expense incurred or to be incurred on account of
financial hardship.

 

5.2.3                        If a
distribution under this Section 5.2 is approved by the Committee, such
distribution will be made as soon as practicable following the date it is
approved.  The processing of the request
shall be completed as soon as practicable from the date on which the Committee
receives the properly completed written request for a distribution on account
of a financial hardship.  If a
Participant’s termination of Service occurs after a request is approved in
accordance with this Section 5.2.3, but prior to distribution of the full
amount approved, the approval of the request shall be automatically null and
void and the benefits which the Participant is entitled to receive under the
Plan shall be distributed in accordance with the applicable distribution
provisions of the Plan. Only one financial hardship distribution shall be made
within any Plan Year.

 

5.2.4                        The
Committee may from time to time adopt additional policies or rules governing
the manner in which such distributions may be made so that the Plan may be
conveniently administered.

 

5.3          “Haircut” Withdrawals:  If the Employer designates in the
Adoption Agreement that “haircut” withdrawals shall be permitted under the
Plan, a Participant in Service may at his option make one or more withdrawals
from his Deferred Compensation Account by written request to the Committee;
provided, however, that a Participant who requests a withdrawal under this
Section 5.3 shall incur a penalty (the “haircut”) equal to a percentage
(not less than 10%), as designated by the Employer in the Adoption Agreement,
of the amount withdrawn, and this penalty shall be forfeited from the Deferred
Compensation Account of the Participant notwithstanding the provisions of Section 7.

 

5.4                               College Education Withdrawals:  If the Employer designates in the
Adoption Agreement that college education withdrawals shall be permitted under
the Plan, a Participant may elect in the Salary Deferral Agreement for a
designated percentage or dollar

 

10

 

amount of the Salary Deferral Credits to be
credited to a College Education Account to be used to fund the college
education of the Participant’s Eligible Dependent or Eligible Dependents. The
College Education Account shall be divided into Dependent Subaccounts for each
of the Participant’s Eligible Dependents, and the Participant may designate in
the Salary Deferral Agreement the percentage or dollar amount of each Salary
Deferral Credit to be credited to each Dependent Subaccount; provided, however,
that the minimum credit that a Participant may elect to make to any Dependent
Subaccount is $1,000.  In the absence of
a clear designation, all credits made to the College Education Subaccount shall
be equally allocated to each Dependent Subaccount.  As soon as practicable after an Eligible Dependent of the
Participant attains age 18, the Employer shall pay to the Participant the
balance in the Dependent Subaccount with respect to such Eligible Dependent in
annual installments over a period of four, five or six years, as designated by
the Participant in the Salary Deferral Agreement.  The following special provisions shall apply with respect to the
Dependent Subaccounts:

 

5.4.1                        The
Dependent Subaccounts shall be established, adjusted for payments, credited
with Salary Deferral Credits, Employer Matching Credits, and Employer
Performance Incentive Credits, and credited or debited for deemed investment
gains or losses in the same manner and at the same time as such adjustments are
made to the Deferred Compensation Account under Section 8 and in
accordance with the rules and elections in effect under Section 8.

 

5.4.2                        Notwithstanding
any provision in this Section 5 to the contrary, if Participant incurs a Qualifying
Distribution Event prior to the date on which the entire balance of his College
Education Account has been distributed to him, then the balance in the College
Education Account on the date of the Qualifying Distribution Event shall be
combined with the Participant’s Deferred Compensation Account and distributed
to him in the same manner and at the same time as his Deferred Compensation
Account is distributed to him under Section 6 and in accordance with the
rules and elections in effect under Section 6.

 

11

 

Section 6.                                          Qualifying
Distribution Events Payment Options:

 

6.1                               Payment Options: 
The Employer shall designate in the Adoption Agreement the payment
options available upon a Qualifying Distribution Event.  Upon a Participant’s entry into the Plan,
the Participant shall elect among these designated payment options the method
under which his vested Accrued Benefit or, in the event of his death, any
benefit payable as a result, will be distributed; provided, however, that the
Participant may change the method of payment with the consent of the Committee
by filing a written election with the Committee at least one year prior to the
commencement date of the payments.

 

6.2                               Prepayment: 
Notwithstanding any other provisions of this Plan, if a Participant or
any other person (a “recipient”) is entitled to receive payments under the
Plan, the Committee in its sole discretion may direct the Employer to prepay
all or any part of the payments remaining to be made to or on behalf of the
recipient, or to shorten the payment period. The amount of such prepayment
shall be in full satisfaction of the Employer’s obligations hereunder to the
recipient and to all persons claiming under or through the recipient with respect
to the payments being prepaid.  In the
event of a partial prepayment, the Committee shall designate which installments
are being prepaid and, if applicable, the accounts of the Participant from
which such prepayments shall be debited. 
The Committee’s determinations under this Section 6.2 shall be
final and conclusive upon all parties claiming benefits under this Plan.

 

6.3                               Benefit Exchange: 
Notwithstanding any other provisions of this Plan, the Employer and
the Participant may enter into an agreement under which, in lieu of the payment
of the Participant’s vested Accrued Benefit upon a Qualifying Distribution
Event, the Participant’s vested Accrued Benefit will be exchanged for another
nonqualified benefit in accordance with rules established by the Committee.

 

12

 

Section 7.                                          Vesting:

 

A Participant
shall be fully vested (that is, nonforfeitable) in the portion of his Deferred
Compensation Account attributable to Salary Deferral Credits, and all income,
gains and losses attributable thereto. 
A Participant shall become fully vested in the portion of his Deferred
Compensation Account attributable to Employer Matching Credits, Employer
Performance Incentive Credits, and income, gains and losses attributable thereto,
on the first to occur of:  (i) normal
Retirement; (ii) Early Retirement; (iii) death while in Service; or (iv) in
accordance with the vesting schedule and provisions designated by the
Employer in the Adoption Agreement.

 

Section 8.                                          Account;
Deemed Investment; Adjustment of Accounts:

 

8.1                               Account:  The
Committee shall establish a book reserve account, entitled the “Deferred
Compensation Account,” on behalf of each Participant.  Such account shall be adjusted pursuant to the provisions of
Section 8.3.

 

8.2                               Deemed Investments:  The Deferred Compensation Account of a Participant shall be
credited with an investment return determined as if the account were invested
in one or more investment funds made available by the Committee.  The Participant shall elect the investment
funds in which his Deferred Compensation Account shall be deemed to be
invested.  Such election shall be made
in the manner prescribed by the Committee and shall take effect upon the entry
of the Participant into the Plan. The investment election of the Participant
shall remain in effect until a new election is made by the Participant.  In the event the Participant fails for any
reason to make an effective election of the investment return to be credited to
his account, the investment return shall be determined by the Committee.

 

8.3                               Adjustments to Deferred Compensation Accounts:  With respect to each Participant who has a
Deferred Compensation Account under the Plan, the amount credited to such
account shall be adjusted by the following debits and credits, at the times and
in the order stated:

 

13

 

8.3.1                        The
Deferred Compensation Account shall be debited each business day with the total
amount of any payments made from such account since the last preceding business
day to him or for his benefit.

 

8.3.2                        The
Deferred Compensation Account shall be credited on each Adjustment Date with
the total amount of any Salary Deferral Credits, Employer Matching Credits and
Employer Performance Incentive Credits to such account since the last preceding
Adjustment Date.

 

8.3.3                        The
Deferred Compensation Account shall be credited or debited on each day
securities are traded on a national stock exchange with the amount of deemed
investment gain or loss resulting from the performance of the investment funds
elected by the Participant in accordance with Section 8.2.  The amount of such deemed investment gain or
loss shall be determined by the Committee and such determination shall be final
and conclusive upon all concerned.

 

Section 9.                                          Administration
by Committee:

 

9.1                               Membership of Committee:   The Committee shall consist of at least
three individuals who shall be appointed by the Board to serve at the pleasure
of the Board.  Any member of the
Committee may resign, and his successor, if any, shall be appointed by the
Board. The Committee shall be responsible for the general administration and
interpretation of the Plan and for carrying out its provisions, except to the
extent all or any of such obligations are specifically imposed on the Board.

 

9.2                               Committee officers; Subcommittee:   The members of the Committee shall elect a
Chairman and may elect an acting Chairman. 
They shall also elect a Secretary and may elect an acting Secretary,
either of whom may be but need not be a member of the Committee.  The Committee may appoint from its
membership such subcommittees with such powers as the Committee shall
determine, and may authorize one or more of its members or any agent to execute
or deliver any instruments or to make any payment on behalf of the Committee.

 

9.3                               Committee meetings:   The Committee shall hold such meetings upon such notice, at such
places and at such intervals as it may from time to time determine.  Notice of meetings shall not be required if
notice is waived in writing by all the members of the Committee at the time in
office, or if all such members are present at the meeting.

 

14

 

9.4                               Transaction of business:   A majority of the members of the Committee
at the time in office shall constitute a quorum for the transaction of
business.  All resolutions or other
actions taken by the Committee at any meeting shall be by vote of a majority of
those present at any such meeting and entitled to vote.  Resolutions may be adopted or other action
taken without a meeting upon written consent thereto signed by all of the
members of the Committee.

 

9.5                               Committee records:   The Committee shall maintain full and complete records of its
deliberations and decisions.  The minutes
of its proceedings shall be conclusive proof of the facts of the operation of
the Plan.

 

9.6                               Establishment of rules:   Subject to the limitations of the Plan, the
Committee may from time to time establish rules or by-laws for the
administration of the Plan and the transaction of its business.

 

9.7                               Conflicts of interest:   No individual member of the Committee shall
have any right to vote or decide upon any matter relating solely to himself or
to any of his rights or benefits under the Plan (except that such member may
sign unanimous written consent to resolutions adopted or other action taken
without a meeting), except relating to the terms of his Salary Deferral
Agreement.

 

9.8                               Correction of errors:   The Committee may correct errors and, so far as practicable, may
adjust any benefit or credit or payment accordingly.  The Committee may in its discretion waive any notice requirements
in the Plan; provided, that a waiver of notice in one or more cases shall not be
deemed to constitute a waiver of notice in any other case.  With respect to any power or authority which
the Committee has discretion to exercise under the Plan, such discretion shall
be exercised in a nondiscriminatory manner.

 

9.9                               Authority to interpret Plan:  Subject to the claims procedure set forth in
Section 16, the Plan Administrator and the Committee shall have the duty
and discretionary authority to interpret and construe the provisions of the
Plan and to decide any dispute which may arise regarding the rights of
Participants hereunder, including the discretionary authority to

 

15

 

construe the Plan and to make determinations
as to eligibility and benefits under the Plan. Determinations by the Plan
Administrator and the Committee shall apply uniformly to all persons similarly
situated and shall be binding and conclusive upon all interested persons.

 

9.10                        Third party advisors:  The Committee may engage an attorney, accountant, actuary or any
other technical advisor on matters regarding the operation of the Plan and to
perform such other duties as shall be required in connection therewith, and may
employ such clerical and related personnel as the Committee shall deem
requisite or desirable in carrying out the provisions of the Plan.  The Committee shall from time to time, but
no less frequently than annually, review the financial condition of the Plan
and determine the financial and liquidity needs of the Plan.  The Committee shall communicate such needs
to the Employer so that its policies may be appropriately coordinated to meet
such needs.

 

9.11                        Compensation of members:  No fee or compensation shall be paid to any
member of the Committee for his Service as such.

 

9.12                        Expense reimbursement:  The Committee shall be entitled to
reimbursement by the Employer for its reasonable expenses properly and actually
incurred in the performance of its duties in the administration of the Plan.

 

9.13                        Indemnification: 
No member of the Committee shall be personally liable by reason of any
contract or other instrument executed by him or on his behalf as a member of
the Committee nor for any mistake of judgment made in good faith, and the
Employer shall indemnify and hold harmless, directly from its own assets
(including the proceeds of any insurance policy the premiums for which are paid
from the Employer’s own assets), each member of the Committee and each other
officer, employee, or director of the Employer to whom any duty or power
relating to the administration or interpretation of the Plan may be delegated or
allocated, against any unreimbursed or uninsured cost or expense (including any
sum paid in settlement of a claim with the prior written approval of the Board)
arising out of any act or omission to act in connection with the Plan unless
arising out of such person’s own fraud, bad faith, willful misconduct or gross
negligence.

 

16

 

Section 10.                                   Contractual
Liability; Trust:

 

10.1                        Contractual Liability:  The obligation of the Employer to make
payments hereunder shall constitute a contractual liability of the Employer to
the Participant. Such payments shall be made from the general funds of the
Employer, and the Employer shall not be required to establish or maintain any
special or separate fund, or otherwise to segregate assets to assure that such
payments shall be made, and the Participant shall not have any interest in any
particular assets of the Employer by reason of its obligations hereunder.  To the extent that any person acquires a
right to receive payment from the Employer, such right shall be no greater than
the right of an unsecured creditor of the Employer.

 

10.2                        Trust:  If so
designated in Section 2.34 of the Adoption Agreement, the Employer may
establish a Trust with the Trustee, pursuant to such terms and conditions as
are set forth in the Trust Agreement. 
The Trust, if and when established, is intended to be treated as a
grantor trust for purposes of the Code. 
The establishment of the Trust is not intended to cause Participants to
realize current income on amounts contributed thereto, and the Trust shall be
so interpreted and administered.

 

Section 11.                                   Allocation of
Responsibilities:

 

The persons
responsible for the Plan and the duties and responsibilities allocated to each
are as follows:

 

11.1                        Board:

 

(i)                                     To
amend the Plan;

 

(ii)                                  To
appoint and remove members of the Committee; and

 

(iii)                               To
terminate the Plan.

 

11.2                        Committee:

 

(i)                                     To
designate Participants;

 

17

 

(ii)                                  To
interpret the provisions of the Plan and to determine the rights of the
Participants under the Plan, except to the extent otherwise provided in
Section 16 relating to claims procedure;

 

(iii)                               To
administer the Plan in accordance with its terms, except to the extent powers
to administer the Plan are specifically delegated to another person or persons
as provided in the Plan;

 

(iv)                              To
account for the Accrued Benefits of Participants; and

 

(v)                                 To
direct the Employer in the payment of benefits.

 

11.3                        Plan Administrator:

 

(i)                                     To
file such reports as may be required with the United States Department of
Labor, the Internal Revenue Service and any other government agency to which
reports may be required to be submitted from time to time; and

 

(ii)                                  To
administer the claims procedure to the extent provided in Section 16.

 

Section 12.                                   Benefits Not
Assignable; Facility of Payments:

 

12.1                        Benefits not assignable:   No portion of any benefit credited or paid under the Plan with
respect to any Participant shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any
attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber or
charge the same shall be void, nor shall any portion of such benefit be in any
manner payable to any assignee, receiver or any one trustee, or be liable for
his debts, contracts, liabilities, engagements or torts.

 

12.2                        Payments to minors and others:   If any individual entitled to receive a
payment under the Plan shall be physically, mentally or legally incapable of
receiving or acknowledging receipt of such payment, the Committee, upon the
receipt of satisfactory evidence of his incapacity and satisfactory evidence
that another person or institution is maintaining him and that no guardian or
committee has been appointed for him, may cause any payment otherwise payable
to him to be made to such person or institution so maintaining him.

 

18

 

Payment to such person or institution shall
be in full satisfaction of all claims by or through the Participant to the
extent of the amount thereof.

 

Section 13.                                   Beneficiary:

 

The
Participant’s beneficiary shall be the person or persons designated by the
Participant on the beneficiary designation form provided by and filed with the
Committee or its designee.  If the
Participant does not designate a beneficiary, the beneficiary shall be his
Surviving Spouse.  If the Participant
does not designate a beneficiary and has no Surviving Spouse, the beneficiary
shall be the Participant’s estate.  The
designation of a beneficiary may be changed or revoked only by filing a new
beneficiary designation form with the Committee or its designee.  If a beneficiary (the “primary beneficiary”)
is receiving or is entitled to receive payments under the Plan and dies before
receiving all of the payments due him, the balance to which he is entitled
shall be paid to the contingent beneficiary, if any, named in the Participant’s
current beneficiary designation form. 
If there is no contingent beneficiary, the balance shall be paid to the
estate of the primary beneficiary.  Any
beneficiary may disclaim all or any part of any benefit to which such
beneficiary shall be entitled hereunder by filing a written disclaimer with the
Committee before payment of such benefit is to be made.  Such a disclaimer shall be made in a form
satisfactory to the Committee and shall be irrevocable when filed.  Any benefit disclaimed shall be payable from
the Plan in the same manner as if the beneficiary who filed the disclaimer had
died on the date of such filing.

 

Section 14.                                   Amendment and
Termination of Plan:

 

The Board may
amend any provision of the Plan or terminate the Plan at any time; provided,
that in no event shall such amendment or termination reduce any Participant’s
Accrued Benefit as of the date of such amendment or termination, nor shall any
such amendment affect the terms of the Plan relating to the payment of such
Accrued Benefit.

 

Notwithstanding
the foregoing, the Plan shall be terminated upon the occurrence of one or more
of the events designated in the Adoption Agreement.  Upon the occurrence of a

 

19

 

termination event, the Accrued Benefit of
each Participant shall become fully vested and payable to the Participant in a
lump sum.

 

Section 15.                                   Communication to
Participants:

 

The Employer
shall make a copy of the Plan available for inspection by Participants and
their beneficiaries during reasonable hours at the principal office of the
Employer.

 

Section 16.                                   Claims Procedure:

 

The following
claims procedure shall apply with respect to the Plan:

 

16.1                        Filing of a claim for benefits:  If a Participant or beneficiary (the
“claimant”) believes that he is entitled to benefits under the Plan which are
not being paid to him or which are not being accrued for his benefit, he shall
file a written claim therefor with the Plan Administrator.  In the event the Plan Administrator shall be
the claimant, all actions which are required to be taken by the Plan
Administrator pursuant to this Section 16 shall be taken instead by
another member of the Committee designated by the Committee.

 

16.2                        Notification to claimant of decision:  Within 90 days after receipt of a claim by
the Plan Administrator (or within 180 days if special circumstances require an
extension of time), the Plan Administrator shall notify the claimant of his
decision with regard to the claim.  In
the event of such special circumstances requiring an extension of time, there
shall be furnished to the claimant prior to expiration of the initial 90-day
period written notice of the extension, which notice shall set forth the
special circumstances and the date by which the decision shall be
furnished.  If such claim shall be
wholly or partially denied, notice thereof shall be in writing and worded in a
manner calculated to be understood by the claimant, and shall set forth:  (i) the specific reason or reasons for the
denial; (ii) specific reference to pertinent provisions of the Plan on which
the denial is based; (iii) a description of any additional material or
information necessary for the claimant to perfect the claim and an explanation
of why such material or information is necessary; and (iv) an explanation of
the procedure for review of the denial. 
If the Plan Administrator fails to notify the claimant of the decision
in timely manner, the

 

20

 

claim shall be deemed denied as of the close
of the initial 90-day period (or the close of the extension period, if applicable).

 

16.3                        Procedure for review:  Within 60 days following receipt by the claimant of notice
denying his claim, in whole or in part, or, if such notice shall not be given,
within 60 days following the latest date on which such notice could have been
timely given, the claimant shall appeal denial of the claim by filing a written
application for review with the Committee. Following such request for review,
the Committee shall fully and fairly review the decision denying the claim.  Prior to the decision of the Committee, the
claimant shall be given an opportunity to review pertinent documents and to
submit issues and comments in writing.

 

16.4                        Decision on review:  The decision on review of a claim denied in whole or in part by
the Plan Administrator shall be made in the following manner:

 

16.4.1                  Within 60 days
following receipt by the Committee of the request for review (or within 120
days if special circumstances require an extension of time), the Committee
shall notify the claimant in writing of its decision with regard to the
claim.  In the event of such special
circumstances requiring an extension of time, written notice of the extension
shall be furnished to the claimant prior to the commencement of the extension.  If the decision on review is not furnished
in a timely manner, the claim shall be deemed denied as of the close of the
initial 60-day period (or the close of the extension period, if applicable).

 

16.4.2                  With respect to
a claim that is denied in whole or in part, the decision on review shall set
forth specific reasons for the decision, shall be written in a manner
calculated to be understood by the claimant, and shall cite specific references
to the pertinent Plan provisions on which the decision is based.

 

16.4.3                  The decision of
the Committee shall be final and conclusive.

 

16.5                        Action by authorized representative of
claimant:   All actions set
forth in this Section 16 to be taken by the claimant may likewise be taken
by a representative of the claimant duly authorized by him to act in his behalf
on such matters.  The Plan Administrator
and the Committee may require such evidence as either may reasonably deem
necessary or advisable of the authority to act of any such representative.

 

21

 

Section 17.                                   Miscellaneous
Provisions:

 

17.1                        Set off:  
Notwithstanding any other provision of this Plan, the Employer may
reduce the amount of any payment otherwise payable to or on behalf of a
Participant hereunder by the amount of any loan, cash advance, extension of
credit or other obligation of the Participant to the Employer that is then due
and payable, and the Participant shall be deemed to have consented to such
reduction.

 

17.2                        Notices:  Each
Participant who is not in Service and each beneficiary shall be responsible for
furnishing the Committee or its designee with his current address for the
mailing of notices and benefit payments. 
Any notice required or permitted to be given to such Participant or
beneficiary shall be deemed given if directed to such address and mailed by
regular United States mail, first class, postage prepaid.  If any check mailed to such address is
returned as undeliverable to the addressee, mailing of checks will be suspended
until the Participant or beneficiary furnishes the proper address.  This provision shall not be construed as
requiring the mailing of any notice or notification otherwise permitted to be
given by posting or by other publication.

 

17.3                        Lost distributees:  A benefit shall be deemed forfeited if the Plan Administrator is
unable to locate the Participant or beneficiary to whom payment is due on or
before the fifth anniversary of the date payment is to be made or commence;
provided, that the deemed investment rate of return pursuant to
Section 8.2 shall cease to be applied to the Participant’s account
following the first anniversary of such date; provided further, however, that
such benefit shall be reinstated if a valid claim is made by or on behalf of
the Participant or beneficiary for all or part of the forfeited benefit.

 

17.4                        Reliance on data: 
The Employer, the Committee and the Plan Administrator shall have the
right to rely on any data provided by the Participant or by any
beneficiary.  Representations of such data
shall be binding upon any party seeking to claim a benefit through a
Participant, and the Employer, the Committee and the Plan Administrator shall

 

22

 

have no obligation to inquire into the
accuracy of any representation made at any time by a Participant or
beneficiary.

 

17.5                        Receipt and release for payments:  Subject to the provisions of
Section 17.1, any payment made from the Plan to or with respect to any
Participant or beneficiary, or pursuant to a disclaimer by a beneficiary,
shall, to the extent thereof, be in full satisfaction of all claims hereunder
against the Plan and the Employer with respect to the Plan. The recipient of
any payment from the Plan may be required by the Committee, as a condition
precedent to such payment, to execute a receipt and release with respect
thereto in such form as shall be acceptable to the Committee.

 

17.6                        Headings:  The
headings and subheadings of the Plan have been inserted for convenience of
reference and are to be ignored in any construction of the provisions hereof.

 

17.7                        Continuation of employment:   The establishment of the Plan shall not be
construed as conferring any legal or other rights upon any Employee or any
persons for continuation of employment, nor shall it interfere with the right
of the Employer to discharge any Employee or to deal with him without regard to
the effect thereof under the Plan.

 

17.8                        Merger or consolidation:   No employer-party to the Plan shall
consolidate or merge into or with another corporation or entity, or transfer
all or substantially all of its assets to another corporation, partnership,
trust or other entity (a “Successor Entity”) unless such Successor Entity shall
assume the rights, obligations and liabilities of the employer-party under the
Plan and upon such assumption, the Successor Entity shall become obligated to
perform the terms and conditions of the Plan.

 

17.9                        Construction:  The
Employer shall designate in the Adoption Agreement the state according to whose
laws the provisions of the Plan shall be construed and enforced, except to the
extent that such laws are superseded by ERISA.

 

23Exhibit 10.42

 

SUBLEASE AGREEMENT

 

BETWEEN

 

YAHOO! INC.

 

AND

 

OAK TECHNOLOGY, INC.

 

SUBLEASE

 

THIS SUBLEASE (“Sublease”) is entered into as of June 18, 2001 (the
“Effective Date”), by and between YAHOO! INC., a Delaware corporation
(“Sublandlord”) and OAK TECHNOLOGY, INC., a Delaware corporation (“Subtenant”),
with reference to the following facts:

 

A.            Pursuant
to that certain Lease dated March 1, 1999 (the “Master Lease”), GAWTA Kifer
LLC, a California limited liability company (“Landlord”), as landlord, leased
to Sublandlord, as tenant, the building (the “Building”) located at 1390 Kifer
Road (formerly known as 1450 Kifer Road), Sunnyvale, California (collectively,
the “Master Lease Premises”) consisting of a total of approximately 88,924
rentable square feet.

 

B.            Subtenant
wishes to sublease from Sublandlord, and Sublandlord wishes to sublease to
Subtenant, the entire Master Lease Premises (as used herein, the “Subleased
Premises”).

 

NOW, THEREFORE, in consideration of the foregoing, and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged by the parties, Sublandlord and Subtenant hereby agree as follows:

 

1.             Sublease.               Sublandlord hereby subleases to Subtenant and
Subtenant hereby subleases from Sublandlord for the term, at the rental, and
upon all of the conditions set forth herein, the Subleased Premises.

 

2.             Term.

 

2.1           The
term of this Sublease (“Term”) shall commence as of November 1, 2001 (the
“Commencement Date”) and shall expire, unless sooner terminated pursuant to any
provision hereof, on the Expiration Date provided in the Master Lease, which is
November 30, 2006 (the “Expiration Date”). 
Subtenant shall have access to the Premises as of September 1, 2001 for
the purpose of planning, constructing and outfitting the Premises for
Subtenant’s use provided that such early access does not interfere with
Sublandlord’s move out from the Premises.

 

2.2           Under
the Master Lease, Sublandlord must obtain the consent of Landlord to any
subletting.  This Sublease shall be in
full force and effect upon execution of this Sublease by Sublandlord and
Subtenant; provided that, notwithstanding Section 2.1 above, in no event will
the Commencement Date occur until Landlord executes a consent in the form
attached hereto as Exhibit A (the “Consent”).  In the event that Landlord does not execute the Consent within
fifteen (15) business days of the Effective Date, either party hereto shall
have the right to terminate this Sublease by written notice to the other
party.  Upon such termination, the
Deposit and any prepaid rent shall be promptly returned to Subtenant.

 

 

3.             Rent.

 

3.1           Base
Rent Payments.

 

(a)           From
and after the Commencement Date, Subtenant shall pay to Sublandlord as Base
Rent for the Subleased Premises during the Term the following:

 

	
  Months

  	
   

  	
  Monthly
  Base Rent

  	
   

  	
  Rent/rsf/month

  
	
  1-2

  	
   

  	
  $66,693.00

  	
   

  	
  $

  	
  0.75

  
	
  3-12

  	
   

  	
  $253,433.40

  	
   

  	
  $

  	
  2.85

  
	
  13-end

  	
   

  	
  [See Section 3.1(b) below]

  	
   

  	
   

  

 

(b)           In
addition, on the first day of each Rent Adjustment Year (as defined below),
monthly Base Rent shall be increased to equal one hundred three and five tenths
percent (103.5%) of the monthly Base Rent in effect immediately prior to the
commencement of that Rent Adjustment Year. 
“Rent Adjustment Year” shall mean a period of twelve (12) full calendar
months.  The first Rent Adjustment Year
shall commence on the first day of the thirteenth (13th) month
following the Commencement Date, and each succeeding Rent Adjustment Year shall
commence on the one-year anniversary date of the first day of the preceding
Rent Adjustment Year.

 

(c)           Base
Rent shall be paid on the first day of each month of the Term, except that
Subtenant shall pay the first month’s Base Rent to Sublandlord upon execution
of this Sublease.  If the Term does not
begin on the first day of the month or end on the last day of a month, the Base
Rent and Additional Rent (hereinafter defined) for that partial month shall be
prorated by multiplying the monthly Base Rent and Additional Rent by a
fraction, the numerator of which is the number of days of the partial month
included in the Term and the denominator of which is the total number of days
in the full calendar month.  All Rent
(hereinafter defined) shall be payable in lawful money of the United States, by
regular bank check of Subtenant, to Sublandlord at the address stated herein or
to such other persons or at such other places as Sublandlord may designate in
writing.

 

3.2           Expenses
and Utilities.

 

(a)           Definitions.    For purposes of this Sublease and in addition to the terms defined
elsewhere in this Sublease, the following terms shall have the meanings set
forth below:

 

(1) “Additional Rent” shall mean the sums payable pursuant to
subparagraph 3.2(b) of this Sublease.

 

(2) “Operating Expenses” shall mean Additional Rent, as defined
in Section 3(A) of the Master Lease, Reimbursable Expenses and Utilities, as
defined in Section 10 of the Master Lease, all amounts due under Section 11 of
the Master Lease, and all other operating expenses, fees, reimbursable costs
and utilities which are the responsibility of the Lessee under the Master
Lease.

 

 

(3)           “Rent”
shall mean, collectively, Base Rent, Additional Rent, and all other sums
payable by Subtenant to Sublandlord under this Sublease, whether or not
expressly designated as “rent,” all of which are deemed and designated as rent
pursuant to the terms of this Sublease.

 

(b)           In
addition to the Base Rent payable pursuant to Section 3.1 above, from and after
the Commencement Date, for each calendar year of the Term, Subtenant, as
Additional Rent, shall pay one hundred percent (100%) of all Operating Expenses
payable by Sublandlord under the Master Lease, within ten (10) days of
receiving an invoice therefor.  In the
event that Landlord bills Sublandlord monthly for an estimated amount of such
expenses, Subtenant shall pay to Sublandlord on the first day of each month as
Additional Rent such estimated amount of Operating Expenses.  Sublandlord shall give Subtenant copies of
all invoices received from Landlord regarding Operating Expenses.

 

(c)           For
partial calendar years during the term of this Sublease, the amount of
Additional Rent payable pursuant to this subsection that is applicable to that
partial calendar year shall be prorated based on the ratio of the number of
days of such partial calendar year falling during the term of this Sublease to
365.  The expiration or earlier
termination of this Sublease shall not affect the obligations of Sublandlord
and Subtenant pursuant to Section 3.2 which arise prior to such expiration or
termination, and such obligations shall survive, remain to be performed after,
any expiration or earlier termination of this Sublease.

 

3.3           Payment
of Rent to Landlord.
    Notwithstanding Sections 3.1 and 3.2 above, Sublandlord
agrees that Subtenant may pay all Base Rent and Additional Rent directly to
Landlord, provided that Subtenant concurrently sends to Sublandlord a copy or
other evidence of such payment.

 

4.             Security
Deposit.

 

4.1           Concurrently
with Subtenant’s execution and delivery of this Sublease, and as security for
its obligations under the Sublease, Subtenant shall deposit with Sublandlord
the sum of One Million Two Hundred Fifty Thousand Dollars ($1,250,000) as
a  security deposit, in cash or in the
form of a Letter of Credit, as defined below (the “Deposit”). The Deposit shall
be held by Sublandlord as security for the faithful performance by Subtenant of
all the provisions of this Sublease to be performed or observed by
Subtenant.  If Subtenant fails to pay
rent or other sums due hereunder, or otherwise defaults with respect to any
provisions of this Sublease, Sublandlord may use, apply or retain all or any
portion of the Deposit for the payment of any rent or other sum in default or
for the payment of any other sum to which Sublandlord may become obligated by
reason of Subtenant’s default, or to compensate Sublandlord for any loss or
damage which Sublandlord may suffer thereby. 
If Sublandlord so uses or applies all or any portion of the Deposit,
Subtenant shall within ten (10) days after demand therefor deposit cash or an amended
or replacement letter of credit with Sublandlord in an amount sufficient to
restore the Deposit to the full amount thereof and Subtenant’s failure to do so
shall be a material breach of this Sublease. 
In the event the Deposit is cash, Sublandlord shall keep the Deposit in
a separate interest-bearing account approved by Subtenant, with interest
distributed semi-annually to Subtenant. 
If Subtenant performs all of Subtenant’s obligations hereunder, the
Deposit, or so much thereof as has not theretofore been applied by Sublandlord,
shall be returned, along with 

 

 

all
accrued but unpaid interest, so Subtenant (or, at Sublandlord’s option, to the
last assignee, if any, of Subtenant’s interest hereunder) following the
expiration of the Term, and after Subtenant has vacated the Premises.  No trust relationship is created herein
between Sublandlord and Subtenant with respect to the Deposit.

 

4.2           For
the purposes for this Section, “Letter of Credit” means an unconditional,
irrevocable sight draft letter of credit issued by the San Francisco or San
Jose office of a major national bank satisfactory to Sublandlord, naming
Sublandlord as beneficiary and otherwise in form and substance satisfactory to
Sublandlord.  The Letter of Credit shall
be for a one-year term and shall provide: (i) that Sublandlord may make partial
and multiple draws thereunder, (ii) that draws shall be payable upon
presentment of a clean sight draft only, (iii) that in the event of
Sublandlord’s assignment or other transfer of its interest in the Lease, the
Letter of Credit shall be freely transferable by Sublandlord, without charge to
Sublandlord or the assignee or transferee of such interest, (iv) that it is
governed by the Uniform Customs and Practice for Documentary Credits (1993 revisions),
International Chamber of Commerce Publication No. 500; and (v) that the Letter
of Credit will be automatically renewed upon the expiration of its term for
additional one year periods, with a final expiration date of February 1, 2007.  Notwithstanding the foregoing, if the bank
does not confirm the extension of the Letter of Credit at least 30 days prior
to the relevant annual expiration date or if Subtenant does not substitute a
replacement Letter of Credit in the applicable draw amount by such date, Sublandlord
shall be entitled to draw on the Letter of Credit and to hold and apply such
funds as an additional Security Deposit in accordance with the terms of the
Sublease.  If Subtenant fails to pay
rent or other charges due under the Sublease, or otherwise defaults, after
applicable notice and cure periods, if any, with respect to any provision of
the Sublease, Sublandlord may draw upon the Letter of Credit up to the full
amount to which Sublandlord is entitled under Section 4.1 above.

 

5.             Use
and Occupancy.

 

5.1           Use
and Signage.
    The Subleased Premises shall be used and occupied only for
the uses permitted under the Master Lease and for not other use or purpose,
except that, in the event that Landlord consents in writing to Subtenant’s use
of the Subleased Premises as research and development in addition to general
office, such use shall also be permitted, provided Subtenant does not use,
store or transport to or from the Premises any toxic  or hazardous materials or waste, other than as provided in the
Master Lease.

 

5.2           Compliance
with Master Lease.

 

(a)           Subtenant
agrees that it will occupy the Subleased Premises in accordance with the terms
of the Master Lease and will not suffer to be done or omit to do any act which
may result in a violation of or a default under any of the terms and conditions
of the Master Lease, or render Sublandlord liable for any damage, charge or
expense thereunder.

 

(b)           Subtenant
agrees that Sublandlord shall not be required to perform any of the covenants,
agreements and/or obligations of Landlord under the Master Lease and, insofar
as any of the covenants, agreements and obligations of Sublandlord hereunder
are required to be performed under the Master Lease by Landlord thereunder,
Subtenant

 

acknowledges and agrees that
Sublandlord shall be entitled to look to Landlord for such  performance.  Sublandlord shall not be responsible for any failure or
interruption, for any reason whatsoever, of the services or facilities that may
be appurtenant to or supplied at the Building by Landlord or otherwise,
including, without limitation, heat, air conditioning, ventilation,
life-safety, water, electricity, elevator service and cleaning service, if any;
and no failure to furnish, or interruption of, any such services or facilities shall
give rise to any (i) abatement, diminution or reduction of Subtenant’s
obligations under this Sublease, except to the extent provided in the Master
Lease, or (ii) liability on the part of Sublandlord. Notwithstanding the
foregoing, Sublandlord shall promptly take such action as may reasonably be
indicated, under the circumstances, to secure such performance upon Subtenant’s
request to Sublandlord to do so and shall thereafter diligently prosecute such
performance on the part of Landlord.

 

6.             Master Lease and
Sublease Terms.

 

6.1           Subtenant acknowledges
that Subtenant has reviewed and is familiar with all of the terms, agreements,
covenants and conditions of the Master Lease.

 

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

 

6.3           The terms, conditions
and respective obligations of Sublandlord and Subtenant to each other under
this Sublease shall be the terms and conditions of the Master Lease except for
those provisions of the Master Lease which are directly contradicted by this
Sublease in which event the terms of the Sublease document shall control over
the Master Lease.  Therefore, for the
purposes of this Sublease, wherever in the Master Lease the word “Landlord” is
used it shall be deemed to mean the Sublandlord herein and wherever in the
Master Lease the word “Tenant” is used it shall be deemed to mean the Subtenant
herein.  Any non-liability, release,
indemnity or hold harmless provision in the Master Lease for the benefit of
Landlord that is incorporated herein by reference, shall be deemed to inure to
the benefit of Sublandlord, Landlord, and any other person intended to be
benefited by said provision, for the purpose of incorporation by reference in
this Sublease.  Any right of Landlord
under the Master Lease of access or inspection and any right of Landlord under
the Master Lease to do work in the Master Lease premises or in the Building and
any right of Landlord under the Master Lease in respect of rules and
regulations, which is incorporated herein by reference, shall be deemed to
inure to the benefit of Sublandlord, Landlord, and any other person intended to
be benefited by said provision, for the purpose of incorporation by reference
in this Sublease.

 

6.4           For the purposes of
incorporation herein, the terms of the Master Lease are subject to the
following additional modifications:

 

(a)           In all provisions of
the Master Lease (under the terms thereof and without regard to modifications
thereof for purposes of incorporation into this Sublease) requiring the approval
or consent of Landlord, Subtenant shall be required to obtain the approval or
consent of both Sublandlord and Landlord.

 

(b)           In all provisions of
the Master Lease requiring Tenant to submit, exhibit to, supply or provide
Landlord with evidence, certificates, or any other matter or thing,

 

 

Subtenant shall be required to
submit, exhibit to, supply or provide, as the case may be, the same to both
Landlord and Sublandlord.

 

(c)           Sublandlord shall have
no obligation to restore or rebuild any portion of the Subleased Premises after
any destruction or taking by eminent domain.

 

(d)           In all provisions of
the Master Lease requiring Tenant to designate Landlord as an additional or
named insured on its insurance policy, Subtenant shall be required to so designate
Landlord and Sublandlord on its insurance policy.

 

6.5           Notwithstanding the
terms of Section 6.3 above, Subtenant shall have no rights nor obligations
under the following provisions of the Master Lease: Work Letter Agreement, any
representations made by Landlord, any rights or options to expand, extend or
renew the Master Lease or this Sublease, including without limitation the
option set forth in Section 4 of the Master Lease, rights of first offer,
rights of first negotiation, and rights to any tenant improvement
allowance.  Subtenant shall have all
other rights and obligations of Sublandlord as tenant under the Master Lease,
but only to the extent that a subtenant is permitted to obtain the benefit of
such rights under the terms of the Master Lease.

 

6.6           During the Term and for
all periods subsequent thereto with respect to obligations which have arisen
prior to the termination of this Sublease, Subtenant agrees to perform and
comply with, for the benefit of Sublandlord and Landlord, the obligations of Sublandlord
under the Master Lease which pertains to the Subleased Premises and/or this
Sublease, except for those provisions of the Master Lease which are directly
contradicted by this Sublease, in which event the terms of this Sublease
document shall control over the Master Lease.

 

6.7           Sublandlord agrees to
maintain the Master Lease, as it pertains to the Subleased Premises, during the
entire term of this Sublease, and to use its reasonable efforts to cause
Landlord to comply with or perform the obligations of Landlord under the Master
Lease.

 

6.8           Notwithstanding the
provisions of this Sublease, any obligation of Sublandlord to provide services
or utilities to the Subleased Premises or to Subtenant or to perform
maintenance or repair obligations with respect to the Building or the Subleased
Premises which is contained in this Sublease by the incorporation by reference
of the provisions of the Master Lease, shall be observed or performed by
Sublandlord diligently using reasonable efforts to cause Landlord to observe
and/or perform the same.

 

6.9           Sublandlord hereby
represents and warrants that Sublandlord is not in default in its performance
of the Master Lease, and no pending notice of default has been given to
Sublandlord.  To Sublandlord’s
knowledge, Landlord is not in default in its performance of the Master Lease
and no pending notice of default has been given to Landlord.  Sublandlord shall comply with the Master
Lease from the Effective Date until the Commencement Date.

 

 

7.             Assignment.

 

7.1           Subtenant
will not assign or further sublet all or any portion of the Subleased Premises
without Sublandlord’s and Landlord’s express, prior, written consent.
Sublandlord’s consent shall not be unreasonably withheld.

 

7.2           As
a condition to Sublandlord’s consent, Subtenant will pay all expenses incurred
by Sublandlord concerning such transfer request and subtenant’s assignee or
sublessee will assume in writing the obligations of Subtenant arising under
this Sublease.  No consent to any such
transfer will relieve Subtenant of Subtenant’s obligations under this
Sublease.  Consent to any one transfer
will not relieve Subtenant from Subtenant’s obligation to obtain express,
prior, written consent to any further sublease or assignment. The acceptance of
rent by Sublandlord from any other person will not be deemed to be either a
waiver by Sublandlord of any provision of this Section or a consent to any such
transfer.

 

8.             Termination of
Master Lease.  If for any reason the
term of the Master Lease shall terminate prior to the scheduled Expiration
Date, this Sublease shall thereupon be terminated and Sublandlord shall not be
liable to Subtenant by reason thereof unless (i) Subtenant shall not then be in
default hereunder beyond and applicable notice and cure period and (ii) such
termination shall have been effected because of the breach or default of
Sublandlord under the Master Lease or by reason of the voluntary termination or
surrender of the Master Lease by Sublandlord.

 

9.             Indemnity.

 

9.1           Subtenant
shall indemnify, defend and hold harmless Sublandlord from and against all
losses, costs, damages, expenses and liabilities, including, without
limitation, reasonable attorney’s fees and disbursements, which Sublandlord may
incur or pay out (including, without limitation, to the Landlord) by reason of
(i) the condition, use, or occupancy of the Subleased Premises (except to the
extent due to the condition of the Subleased Premises as of the Commencement
Date), or any accidents, damages or injuries to persons or property occurring in,
on or about the Subleased Premises (except to the extent caused by
Sublandlord’s negligence or wrongful act or the negligence or wrongful act of
the Landlord), (ii) any breach or default hereunder on Subtenant’s part, (iii)
any work done after the date hereof in or to the Subleased Premises by or on
behalf of Subtenant, (iv) the use, handling, storage or disposal of toxic or
hazardous materials or waste which affects the Subleased Premises by Subtenant
or its officers, partners, employees, agents or contractors, or anyone else
under Subtenant’s control, or (v) any act, omission or negligence on the part
of Subtenant and/or its officers, partners, employees, agents or contractors,
or any person claiming through or under Subtenant.

 

9.2           Sublandlord
shall indemnify, defend and hold harmless Subtenant from and against all
losses, costs, damages, expenses and liabilities, including, without
limitation, reasonable attorneys’ fees and disbursements, which Subtenant may
incur or pay out (including, without limitation, to the Landlord) by reason of
(i) any breach or default hereunder on Sublandlord’s part, or (ii) the use,
handling, storage or disposal of toxic or hazardous materials or waste which
affects the Subleased Premises by Sublandlord or its officers, partners,
employees, agents, or contractors, or anyone else under Sublandlord’s control.

 

 

10.           Limitation on
Liability.  Sublandlord shall not be
liable for personal injury or property damage to Subtenant, its officers,
agents, employees, invitees, guests, licensees or any other person in the
Subleased Premises, regardless of how such injury or damage may be caused. Any
property of Subtenant kept or stored in the Subleased Premises shall be kept or
stored at the sole risk of Subtenant. Subtenant shall hold Sublandlord harmless
from any claims arising out of any personal injury or property damage occurring
in the Subleased Premises.

 

11.           Consents.  In any instance when Sublandlord’s consent
or approval is required under this Sublease, such consent or approval shall not
be unreasonably withheld or delayed. Sublandlord’s refusal to consent to or
approve any matter or thing shall be deemed reasonable if, among other matters,
such consent or approval is required under the provisions of the Master Lease
incorporated herein by reference but has not been obtained from Landlord.

 

12.           Attorney’s Fees.  If Sublandlord or Subtenant brings an action
to enforce the terms hereof or to declare rights hereunder, the prevailing
party who recovers substantially all of the damages, equitable relief or other
remedy sought in any such action on trial and appeal shall be entitled to its
reasonable attorney’s fees to be paid by the losing party as fixed by the
court.

 

13.           As-Is.

 

13.1         Sublandlord
shall deliver, and Subtenant shall accept, possession of the Subleased Premises
in their “AS IS” condition as the Subleased Premises exist on the Effective
Date. Sublandlord shall have no obligation to furnish, render, pay for, consent
to or supply any work, labor, services, materials, furniture, fixtures,
equipment, decorations or other items to make the Subleased Premises ready or
suitable for Subtenant’s occupancy, except as expressly provided herein. In
making and executing this Sublease, Subtenant has relied solely on such
investigations, examinations and inspections as Subtenant has chosen to make or
has made and has not relied on any representation or warranty concerning the
Subleased Premises or the Buildings, except as expressly set forth in this
Sublease. Subtenant acknowledges that Sublandlord has afforded Subtenant the
opportunity for full and complete investigations, examinations and inspections
of the Subleased Premises and the common areas of the Buildings. Subtenant
acknowledges that it is not authorized to make or do any alterations or
improvements in or to the Subleased Premises except as permitted by the
provisions of this Sublease and the Master Lease and that upon expiration or
termination of this Sublease, Subtenant shall deliver the Subleased Premises to
Sublandlord in the condition received, ordinary wear and tear excepted, with
any alterations made in accordance with the terms of this Sublease and the
Master Lease.

 

13.2         Subtenant
shall have the right, for a period of thirty (30) days after the Effective
Date, to inspect the Subleased Premises and notify Sublandlord in writing of
any repairs required to cause the systems serving the Subleased Premises to be
in good working condition. Sublandlord agrees to promptly repair any such
systems which require repairs as reasonably determined by Sublandlord and
Subtenant, but only if the obligation to maintain such systems are
Sublandlord’s responsibility pursuant to the terms of the Master Lease.

 

 

13.3         Sublandlord
hereby represents and warrants that, to the actual knowledge of Sublandlord, as
of the Effective Date, the Subleased Premises are in full and complete
compliance with the requirements of the Master Lease.

 

14.           Parking.  During the Term hereof Subtenant and its
employees shall be permitted to use one hundred percent (100%) of the on-site
parking spaces allocated to Sublandlord in the Master Lease.

 

15.           Personal Property:  Sublandlord shall sell to Subtenant all of
Sublandlord’s work station cubicles in the Building, plus one work station
chair per cubicle, for a price of $1,100.00 for each cubicle and chair
combination, by means of a bill of sale in the form attached hereto as Exhibit
B.

 

16.           Notices:  Any notice by either party to the other
required, permitted or provided for herein shall be valid only if in writing
and shall be deemed to be duly given only if (a) delivered personally, or (b)
sent by means of Federal Express, UPS Next Day Air or another reputable express
mail delivery service guaranteeing next day delivery, or (c) sent by United
States Certified or registered mail, return receipt requested, addressed (i) if
to Sublandlord, at the following addresses:

 

	
   

  	
   

  	
  Yahoo! Inc.

  
	
   

  	
   

  	
  701 First Avenue

  
	
   

  	
   

  	
  Mail Stop A101

  
	
   

  	
   

  	
  Sunnyvale, CA 94089

  
	
   

  	
   

  	
  Attn:  Kevin Gerrity, Facilities Director

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Shartsis, Friese & Ginsburg LLP

  
	
   

  	
   

  	
  One Maritime Plaza, 18th Floor

  
	
   

  	
   

  	
  San Francisco, California 94111

  
	
   

  	
   

  	
  Attn:  Mary Kay Kennedy

  
	
   

  	
   

  	
   

  
	
  And (ii) if the Subtenant, at the following addresses:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Oak Technology, Inc.

  
	
   

  	
   

  	
  139 Kifer Court

  
	
   

  	
   

  	
  Sunnyvale, CA 94086

  
	
   

  	
   

  	
  Attn:  David J. Power, Esq., General Counsel

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Tomlinson Zisko Morosoli & Maser LLP

  
	
   

  	
   

  	
  200 Page Mill Road

  
	
   

  	
   

  	
  Palo Alto, California 94036

  
	
   

  	
   

  	
  Attn:  Cynthia M. Loe, Esq.

  
	
   

  	
   

  	
   

  

or at such other address for either party as that party may designate
by notice to the other. A notice shall be deemed given and effective, if
delivered personally, upon hand delivery thereof (unless such delivery takes
place after hours or on a holiday or weekend, in which event the notice shall
be deemed given on the next succeeding business day), if sent via overnight
courier,

 

 

on the business day next succeeding delivery to the courier, and if
mailed by United States certified or registered mail, three (3) business days
following such mailing in accordance with this Section.

 

17.           Brokers.
   Subtenant represents that it has dealt directly with and only with
Cornish & Carey Oncor International as a broker in connection with this
Sublease. Sublandlord represents that it has dealt directly with and only with
CRESA Partners as a broker in connection with this Sublease. Each party
represents and warrants that it has not dealt with or taken any other action
with any other party in a manner so as to give rise to any valid claim against
either party for a broker’s commission or finder’s fee in connection with the
execution of this Sublease. Each of the parties will indemnify the other from
and against all liabilities from any other claims for broker’s commissions or
finder’s fees arising out of its breach of the foregoing representation and
warranty. Subtenant and Sublandlord agree that Cornish & Carey Oncor
International and CRESA Partners shall be paid commissions in connection with
this Sublease by Sublandlord.

 

18.           Complete Agreement.
   There are no representations, warranties, agreements, arrangements
or understandings, oral or written, between the parties or their
representatives relating to the subject matter of this Sublease which are not
fully expressed in this Sublease.  This
Sublease cannot be changed or terminated nor may any of its provisions be
waived orally or in any manner other than by a written agreement executed by
both parties.

 

19.           Interpretation.
   This Sublease shall be governed by and construed in accordance
with the laws of the State of California. If any provision of this Sublease or
the application thereof to any person or circumstance shall, for any reason and
to any extent, be invalid or unenforceable, the remainder of this Sublease and
the application of that provision to other persons or circumstances shall not
be affected but rather shall be enforced to the extent permitted by law. The
table of contents, captions, headings and titles, if any, in this Sublease are
solely for convenience of reference and shall not affect its interpretation.  This Sublease shall be construed without
regard to any presumption or other rule requiring construction against the
party causing this Sublease or any part thereof to be drafted. If any words or
phrases in this Sublease shall have been stricken out or otherwise eliminated,
whether or not any other words or phrases have been added, this Sublease shall
be construed as if the words or phrases so stricken out or otherwise eliminated
were never included in this Sublease and no implication or inference shall be
drawn from the fact that said words or phrases were so stricken out or
otherwise eliminated. All terms and words used in this Sublease, regardless of
the number or gender in which they are used, shall be deemed to include any
other number and any other gender as the context may require. The word “person”
as used in this Sublease shall mean a natural person or persons, a partnership,
a corporation or any other form of business or legal association or entity.

 

20.           Counterparts.
   This Sublease may be executed in separate counterparts, each of
which shall constitute an original and all of which together shall constitute
one and the same instrument.

 

 

IN WITNESS
WHEREOF, the parties hereto hereby execute this Sublease as of the day and year
first above written.

 

	
   

  	
  SUBLANDLORD:

  	
   

  
	
   

  	
   

  
	
   

  	
  Yahoo! Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Print Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  SUBTENANT:

  	
   

  
	
   

  	
   

  
	
   

  	
  Oak Technology, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Print Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Print Name:

  	
   

  
	
   

  	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}]]