Document:

exv10w17

 

Exhibit 10.17

THIRD AMENDMENT OF AMENDED AND RESTATED OFFICE LEASE

     THIS THIRD AMENDMENT OF AMENDED AND RESTATED OFFICE LEASE (the “Amendment”) is executed this
31 day of January, 2006, by and between DUKE REALTY LIMITED PARTNERSHIP, an
Indiana limited partnership (“Landlord”), and APRIMO, INCORPORATED, a Delaware corporation
(“Tenant”).

W I T N E S S E T H:

     WHEREAS, Landlord (f/k/a Duke-Weeks Realty Limited Partnership), and Genesis Technologies,
Inc., as predecessor in interest to Attune, Incorporated, as predecessor in interest to Tenant,
entered into a certain lease dated September 21, 1998, as amended by instruments dated November 30,
1998, November 2, 1999, January 25, 2000, April 6, 2000, December 20, 2000, and December 20, 2002, and
as amended and restated by that certain Amended and Restated Office Lease dated February 6, 2004,
as amended by instruments dated January 10, 2005 and August 23, 2005 (collectively, the “Lease”),
whereby Tenant leased from Landlord certain premises consisting of approximately 12,584 rentable
square feet of space (the “Initial Premises”), approximately 1,883 rentable square feet of space
(the -“Additional Space”) for a total of 14,467 rentable square feet (collectively, the “Original
Leased Premises”) and approximately 3,500 rentable square feet of space (the “Temporary Space”)
located in an office building commonly known as Five Parkwood, 510 East 96th Street, Suite 300,
Indianapolis, Indiana 46240 (the “Building”); and

     WHEREAS, Tenant desires to expand and relocate the Original Leased Premises to
approximately 42,399 rentable square feet in another building owned by Landlord (the
“Relocated Space”). Commencing upon the Relocated Space Commencement Date (defined below),
the Leased Premises shall mean the Relocated Space; and

     WHEREAS, Landlord and Tenant desire to amend certain provisions of the Lease to reflect
the foregoing and other changes to the Lease;

     NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants herein
contained and each act performed hereunder by the parties, Landlord and Tenant hereby enter
into this Amendment.

     1. Incorporation of Recitals. The above recitals are hereby incorporated
into this Amendment as if fully set forth herein.

     2. Provisions Respecting Termination of the Original Leased Premises and the Temporary
Space. Tenant agrees to surrender possession of the Original Leased Premises and the Temporary
Space pursuant to the provisions contained in the Lease, including, but not limited to Section
2.03, on or before 11:59 p.m. on the day prior to the Relocated Space Commencement Date, and
if Tenant shall so vacate the Original Leased Premises and the Temporary Space, Tenant’s rights
and obligations under the Lease with respect to the Original Leased Premises and the Temporary
Space shall be terminated and cancelled as of 11:59 p.m. on the day prior to the Relocated Space
Commencement Date, except for any accrued but unpaid obligations and such obligations as may
survive the expiration or earlier termination of the Lease.

     3. Amendment of Section 1.01. Basic Lease Provisions and Definitions.

          (a) Commencing on the Relocated Space Commencement Date, Section 1.01 of the Lease is
hereby amended by incorporating Exhibit A-1, attached hereto and incorporated herein by
reference, on which the Relocated Space is depicted. The Relocated Space shall hereinafter be
referred to as the “Leased Premises”.

          (b) Commencing on the date (the “Relocated Space Commencement Date”) that Substantial
Completion (as defined in Exhibit B-1 attached hereto) of the Relocated Space Improvements
(as defined below) occurs, Section 1.01 of the Lease is further amended by deleting
subsections A, B, C, D, E, F, H, L and N and substituting the following in lieu thereof:

			
	     “A.	 	Leased Premises (shown outlined on Exhibit A-1 attached
hereto); Suite: 400; Floor: 4th; Building Address: Parkwood IX, 900 East
96th Street, Indianapolis, Indiana 46240 (the “Building”);

 

 

	 	B.	 	Rentable Area: approximately 42,399 square feet;
	 
	 	 	 	Landlord shall use commercially reasonable standards, consistently applied,
in determining the Rentable Area and the rentable area of the Building. The
Rentable Area shall include the area within the Leased Premises plus a pro
rata portion of the area covered by the common areas within the Building,
as reasonably determined by Landlord from time to time. Landlord’s
determination of Rentable Area shall be deemed correct for all purposes
hereunder.
	 
	 	C.	 	Building Expense Percentage: 20.71%;
	 
	 	D.	 	Minimum Annual Rent:

	 	 	 
	Months 1 - 5 of Year 1
	 	$208,333.35 (5 months)
	Months 6 -10 of Year 1
	 	$250,000.00 (5 months)
	Months 11 -12 of Year 1
	 	$116,666.66(2 months)
	Months 1 - 3 of Year 2
	 	$174,999.99 (3 months)
	Months 4- 12 of Year 2
	 	$635,985.00 (9 months)
	Years 3 - 4
	 	$869,179.56 per year
	Years 5 - 6
	 	$890,379.00 per year
	Years 7 - 8
	 	$911,578.56 per year
	Years 9 - 10
	 	$932,778.00 per year;

	 	E.	 	Monthly Rental Installments:

	 	 	 
	Months 1 - 5*
	 	$41,666.67 per month
	Months 6 - 10
	 	$50,000.00 per month
	Months 11 - 15
	 	$58,333.33 per month
	Months 16 - 24
	 	$70,665.00 per month
	Months 25 - 48
	 	$72,431.63 per month
	Months 49 - 72
	 	$74,198.25 per month
	Months 73 - 96
	 	$75,964.88 per month
	Months 97 - 120
	 	$77,731.50 per month;

*For Months 1 – 5 of the Lease Term, Tenant’s Base Rent shall be
calculated based upon 25,000 rentable square feet at the per square
foot rate of $20.00.

For Months 6 - 10 of the Lease Term, Tenant’s Base Rent shall be
calculated based upon 30,000 rentable square feet at the per square
foot rate of $20.00.

For Months 11 - 15 of the Lease Term, Tenant’s Base Rent shall be
calculated based upon 35,000 rentable square feet at the per square
foot rate of $20.00.

For Months 16 – 24 of the Lease Term, Tenant’s Base Rent shall be
calculated based upon 42,399 rentable square feet at the per square
foot rate of $20.00.

For Months 25 – 48 of the Lease Term, Tenant’s Base Rent shall be
calculated based upon 42,399 rentable square feet at the per square
foot rate of $20.50.

For Months 49 – 72 of the Lease Term, Tenants Base Rent shall be calculated based upon 42,399 rentable square feet at the per square foot rate of $21.00.

For Months 73 – 96 of the Lease Term, Tenant’s Base Rent shall be
calculated based upon 42,399 rentable square feet at the per square foot
rate of $21.50.

For Months 97 - 120 of the Lease Term, Tenant’s Base Rent shall be
calculated based upon 42399 rentable square feet at the per square foot
rate of $22.00.

          F. Term: Through the date which is one hundred twenty (120) consecutive months
immediately after the Relocated Space Commencement Date;

          H. Security Deposit: Irrevocable Unconditional Letter of Credit in the amount of Five
Hundred Thousand Dollars ($500,000.00), subject to reduction and in the form as provided in
Article 4 of the Lease;

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	 	L.	 	Address for payments and notices as follows:

	 	 	 	 	 
	 

	 	Landlord:
	 	Duke Realty Limited Partnership
	 

	 	 	 	Attn.: Property Management
	 

	 	 	 	600 East 96th  Street, Suite 100
	 

	 	 	 	Indianapolis, IN 46240
	 
	 	 	 	 
	 

	 	Tenant:
	 	Aprimo, Incorporated
	 

	 	 	 	900 East 96th Street, Suite 400
	 

	 	 	 	Indianapolis, IN 46240
	 
	 	 	 	 
	 	 	Address for rental and other payments:
	 
	 	 	 	 
	 

	 	 	 	Duke Realty Limited Partnership
	 

	 	 	 	75 Remittance Drive, Suite 3205
	 

	 	 	 	Chicago, IL 60675-3205;

	 	N.	 	Landlord’s Share of Expenses: $5.85 per rentable square foot of the Leased
Premises;
	 
	 	O.	 	Target Relocated Space Commencement Date: May 1, 2006;”

          4. Amendment of Section 2.02. Construction of Tenant Improvements. Section
2.02 of the Lease is hereby amended by incorporating the following:

      “Tenant will personally inspect the Relocated Space and accept the same “AS
IS” without representation or warranty by Landlord of any kind and with the
understanding that Landlord shall have no responsibility with respect thereto
except to construct in a good and workmanlike manner all leasehold improvements to
the Relocated Space (collectively, the “Relocated Space Improvements”) in
accordance with Exhibit B-1 attached hereto and incorporated herein by
reference.”

          5. Amendment of Section 3.02.F. Maximum Increase in Operating Expenses. Commencing on
the Relocated Space Commencement Date, subsection (b) of Section 3.02.F. of the Lease shall
be deleted and the following shall be substituted in lieu thereof:

			
	     “(b)	 	Controllable Expenses. Tenant’s obligation to pay all
other Building Operating Expenses which are not Uncontrollable Expenses
(herein “Controllable Expenses”) shall be limited to a five percent (5%) per
annum increase over the amount the Controllable Expenses for the immediately
preceding calendar year would have been had the Controllable Expenses
increased at the rate of five percent (5%) in all previous calendar years
beginning with the actual Controllable Expenses for the year ending December
31,2006; provided, however, that Controllable Expenses shall not increase by
more than ten percent(10%) for any calendar year.”

          6. Amendment of Section 4. Security Deposit. Section 4 of the Lease is
hereby deleted and the following is substituted in lieu thereof:

          Tenant shall, upon Tenant’s execution of this Amendment, provide to Landlord an irrevocable
unconditional letter of credit (the “New Letter of Credit”) in the form attached hereto as
Exhibit D-1 as security for the performance by Tenant of all of Tenant’s obligations
contained in this Lease (such New Letter of Credit shall also be referred to as “Security Deposit”
herein). The New Letter of Credit shall be (i) issued by Silicon Valley Bank for so long as Silicon
Valley Bank maintains a net worth of not less than Five Hundred Fifty Million Dollars
($550,000,000.00), and (ii) in the amount of Five Hundred Thousand Dollars ($500,000.00). If,
during the term of the New Letter of Credit, Silicon Valley Bank’s net worth reduces to an amount
below $500,000,000.00, then, within fifteen (15) business days of Landlord’s written request.
Tenant shall cause the New Letter of Credit to be reissued by another bank having a net worth of
not less than One Billion Dollars ($ 1,000,000,000.00). In the event Tenant does not deliver the
New Letter of Credit to Landlord upon Tenant’s execution of this Amendment, this Amendment shall be
null and void and of no further force and effect; provided, however, that Landlord shall be
entitled to draw upon the original $75,000.00 letter of credit (the “Original Letter of Credit”)
that Tenant previously provided to Landlord under the Lease in order to satisfy any sums incurred
by Landlord in connection with the Relocated Space Improvements, which right shall survive the
termination of this Amendment In the event of a default by Tenant, Landlord may, at its option,
draw upon the New Letter of Credit and apply all or any part thereof to pay rent or to cure any
such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount
so applied so that Landlord will have on hand at all times during the Lease Term the full

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amount of the New Letter of Credit as set forth hereinabove. Such New Letter of Credit shall be
renewed on an annual basis and shall not expire less than ninety (90) days after the expiration or
earlier termination of this Lease. If Tenant has not renewed the New Letter of Credit at least
thirty (30) days prior to the expiration date thereof, Landlord may draw upon the New Letter of
Credit if same is not renewed and hold the cash proceeds in lieu thereof. In the event of a
transfer of title to the Building, Landlord shall simultaneously transfer the New Letter of Credit
to such transferee and any fee for such transfer shall be paid by Landlord. All sums held by
Landlord pursuant to this Article 4 shall be without interest. Landlord hereby agrees to
return to Tenant the Original Letter of Credit after Landlord receives the New Letter of Credit in
the amount of $500,000.00. Notwithstanding the foregoing and provided Tenant has not previously
been in default, the amount of the New Letter of Credit may be reduced to the amount of $300,000.00
on the earlier to occur of: (i) the date that is within thirty (30) days of the date that Tenant
meets the following criteria: (a) Tenant demonstrates profitability as defined by a positive net
income (based on Tenants audited financial statements supplied by Tenant and prepared in conformity
with generally accepted accounting principles, consistently applied) during each year over a two
(2) consecutive calendar year period, and (b) Tenant’s combined net income over such two (2)
consecutive calendar year period is equal to or greater than $2,000,000.00, or (ii) on the first
(1st) day of the sixty-first (61st) month following the Relocated Space
Commencement Date. Once the New Letter of Credit has been reduced to the amount of $300,000.00, the
amount of the New Letter of Credit shall remain at $300,000.00 for the remainder of the Lease Term.
Notwithstanding anything contained herein to the contrary, Tenant may amend the Original Letter of
Credit in lieu of causing the New Letter of Credit to be issued so long as such amended Original
Letter of Credit complies with the provisions set forth in this Section 4 for the New Letter of
Credit. If Tenant causes such Original Letter of Credit to be amended as provided herein, such
Original Letter of Credit, as so amended, shall be referred to in this Lease and mean the New
Letter of Credit

          7. Amendment of Section 9.02. Tenant’s Insurance. Commencing on the
Relocated Space Commencement Date, Subsection (b) of Section 9.02 of the Lease is
hereby deleted and the following is substituted in lieu thereof:

      “Commercial General Liability Insurance (which insurance shall not exclude
blanket contractual liability, broad form property damage, personal injury, or
fire damage coverage) covering the Leased Premises and Tenant’s use thereof
against claims for bodily injury or death and property damage, which insurance
shall provide coverage on an occurrence basis with a per occurrence limit of not
less than $3,000,000, and with general aggregate limits of not less than
$3,000,000 for each policy year, which limits may be satisfied by any combination
of primary and excess or umbrella per occurrence policies.”

          8. Amendment of Article 11. Assignment and Sublease. Commencing on the
Relocated Space Commencement Date, Article 11 of the Lease is hereby amended by
incorporating the following:

      “Notwithstanding anything contained in this Lease to the contrary, Tenant
shall have the right, without Landlord’s consent, but upon ten (10) days prior
notice to Landlord, to (a) sublet all or part of the Leased Premises to any
related corporation or other entity which controls Tenant, is controlled by Tenant
or is under common control with Tenant; (b) assign all or any part of this Lease
to any related corporation or other entity which controls Tenant, is controlled by
Tenant, or is under common control with Tenant, or to a successor entity into
which or with which Tenant is merged or consolidated or which acquires
substantially all of Tenant’s assets or property; or (c) effectuate any public
offering of Tenant’s stock on the New York Stock Exchange or in the NASDAQ over
the counter market if such transaction includes, directly or indirectly, an
assignment of this Lease to an affiliated company pursuant to clause (a) or (b)
above, provided that in the event of a transfer pursuant to clause (b), the
tangible net worth after any such transaction is not less than the tangible net
worth of Tenant as of the date hereof and provided further that such successor
entity assumes all of the obligations and liabilities of Tenant (any such entity
hereinafter referred to as a “Permitted Transferee”). Landlord acknowledges and
agrees that neither the foregoing provisions nor any other provision in this Lease
shall require Tenant to obtain the consent or provide written notice to Landlord
in the event that Tenant is effecting a public offering of Tenant’s shares in a
transaction which does not involve the sublet or assignment of this Lease. Any
assignment or sublet under the foregoing clauses (a) through (c) shall not be
subject to the requirement that Tenant pay to Landlord the sum of two percent (2%)
of the gross rental value of the sublet or assignment For the purpose of this
Article 11 (i) “control” shall mean ownership of not less than fifty
percent (50%) of all voting stock or legal and equitable interest in such
corporation or entity, and (ii) “tangible net worth” shall mean the excess of the
value of tangible assets (i.e. assets excluding those which are intangible such as
goodwill, patents and trademarks) over liabilities. Any such transfer shall not
relieve Tenant of its obligations under this Lease. Nothing in this paragraph is
intended

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to nor shall permit Tenant to transfer its interest under this Lease as part of a
fraud or subterfuge to intentionally avoid its obligations under this Lease (for
example, transferring its interest to a shell corporation that subsequently files
a bankruptcy), and any such transfer shall constitute a Default hereunder. Any
change in control of Tenant resulting from a merger, consolidation, or a transfer
of partnership or membership interests, a stock transfer, or any sale of
substantially all of the assets of Tenant that do not meet the requirements of
this Article 11 shall be deemed an assignment or transfer that requires
Landlord’s prior written consent pursuant to Article 11 above.”

          9. Amendment of Section 16.12. Reserved Parking. Commencing on the Relocated
Space Commencement Date, Section 16.12 of the Lease is hereby deleted in its entirety and
shall be of no further force or effect.

          10. Amendment of Section 16.13. Option to Terminate. Section 16.13 of
the Lease is hereby deleted and the following is substituted in lieu thereof:

      “Provided that (a) at least 80% of the capital stock and/or all or substantially all of
the assets of Tenant are acquired by a third party that is not presently an Affiliate (as
defined below) of Tenant and Tenant notifies Landlord in writing of such acquisition by said
third party at least thirty (30) days after the closing of such acquisition, (b) Tenant
originally named herein or its Permitted Transferee remains in possession of and has been
continuously operating in the entire Leased Premises throughout the Lease Term, (c) the
forty-eighth (48*) month of the initial Lease Term has not elapsed, and (d) Tenant is not in
Default hereunder, Tenant shall have the right to terminate this Lease effective at the end
of the twelfth (12th) month after Tenant timely notifies Landlord in writing of
its intention to terminate the Lease (the “Termination Date”). Such right shall be exercised
by (i) Tenant’s giving written notice to Landlord of its intention to terminate at least
twelve (12) months prior to the effective date of such termination (“Tenant’s Notice”), and
(ii) Tenant’s payment to Landlord of an amount equal to the sum of One Million Eight Hundred
Seven Thousand, One Hundred Seventy Dollars and Twenty-five Cents ($ 1,807,170.25) plus the
Minimum Annual Rent and Additional Rent for the Leased Premises and any expansion thereto
for the period of time from the day immediately after the Termination Date through the end
of the sixtieth (60th) month of the initial Lease Term (the “Termination
Payment”). A portion of the Termination Payment consisting of One Million Dollars
($1,000,000.00) (the “Initial Payment”) shall accompany Tenant’s Notice and Tenant shall pay
the remainder of the Termination Payment (the “Remainder Payment”) to Landlord thirty (30)
days prior to the Termination Date. Such payment is made in consideration for Landlord’s
grant of this option to terminate, to compensate Landlord for rental and other concessions
given to Tenant, and for other good and valuable consideration. The Termination Payment
shall not in any manner affect Tenant’s obligations to pay Minimum Annual Rent and
Additional Rent or to perform its obligations under the Lease up to and including the
Termination Date. Failure to timely and properly exercise this option shall forever waive
and extinguish it. If such option is validly exercised, then upon the Termination Date,
Tenant shall surrender the Leased Premises to Landlord in accordance with the terms of this
Lease and each party shall be released from further liability hereunder, provided, however,
that such termination shall not affect any right or obligation arising prior to termination
or which survives termination of the Lease. Notwithstanding anything contained in this Lease
to the contrary, if Tenant exercises its Refusal Option (defined below) prior to the
Termination Date and Tenant exercises its option to terminate, the Initial Payment shall be
paid to Landlord in the manner and in the amount described above and the Remainder Payment
shall be paid in the manner described above except that the Termination Payment shall be
comprised of the sum of One Million Eight Hundred Seven Thousand, One Hundred Seventy
Dollars and Twenty-five Cents ($1,807,170.25), plus (i) nine (9) months of Base Rent for the
Refusal Space at the rate of $ 21.00 per square foot, (ii) nine (9) months of Additional
Rent for the Refusal Space, (iii) the unamortized portion of Landlord’s costs resulting from
Tenant’s exercise of its Refusal Option which costs shall include, but not be limited to,
the costs of unamortized tenant improvements and leasing commissions paid by Landlord to the
brokers identified in paragraph 13 of this Amendment, and (iv) the amount of the Minimum
Annual Rent and Additional Rent for the Leased Premises and the Refusal Space for the period
of time from the day immediately after the Termination Date through the end of the sixtieth
(60*) month of the initial Lease Term. If Tenant does not pay either the Initial Payment or
the Remainder Payment when due, Landlord shall have the option to: (i) declare a default and
draw upon the New Letter of Credit up to the full amount of the New Letter of Credit and
exercise any and all of its default remedies available under the Lease, including but not
limited to Section 13.02, for any amounts due to Landlord in excess of the amount of the New
Letter of Credit, or (ii) terminate this option, which right shall be forever waived and
extinguished, and the Lease (including this Amendment) shall remain in full force and
effect; provided, however, that if Landlord exercises its right in this clause (ii) that
Tenant shall be credited with the amount of the Initial Payment, if any, actually paid..

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      For purposes of this Section 16.13 and Section 16.15, the term Affiliate shall mean a
corporation, company, partnership, joint venture or other entity which directly or
indirectly controls, is controlled by or under common control with Tenant (or bona fide
offeror as used in Section 16.15 below). For the purposes of this Section 16.13 only,
“control” shall mean (A) the direct or indirect ownership or control of fifty percent (50%)
or more of (i) the stock (or other securities or voting rights) having the right to vote for
directors or other governing authority thereof or (ii) any other form ownership interests if
not a corporation or (B) the ability to otherwise control the management thereof or (C) in
any country where the local law shall not permit foreign equity participation of fifty
percent (50%) or more, then the direct or indirect ownership or control of the maximum
percentage of such outstanding stock or voting rights permitted by local law.

          11. Amendment of Section 16.14. Temporary Space. The first sentence of
Section 16.14 of the Lease, as incorporated by Paragraph 2 of the Second Amendment of
Amended and Restated Office Lease, is hereby amended to change “February 28, 2006” to be “the day
prior to the Relocated Space Commencement Date”.

          12. Amendment of Article 16. Article 16 of the Lease is hereby amended by
adding the following additional sections:

      “Section 16.15. On-going Right of First Refusal.

      (a) Provided that (i) no default has occurred and is then continuing, (ii) the
creditworthiness of Tenant is then reasonably acceptable to Landlord, and (iii) Tenant
originally named herein or a Permitted Transferee remains in possession of and has been
continuously operating in the entire Leased Premises throughout the Lease Term, and
subject to any rights of other tenants to the Refusal Space (as defined herein) and
Landlord’s right to renew or extend the lease term of any other tenant with respect to
the portion of the Refusal Space now or hereafter leased by such other tenant, Tenant
shall have an on-going right of first refusal (“Refusal Option”) to lease an additional
10,000 square feet of space on the third (3rd) floor of the Building located
contiguous to the Leased Premises as shown crosshatched on the attached Exhibit
I (“Refusal Space”). Prior to entering into any lease that includes all or any
portion of the Refusal Space, Landlord shall notify Tenant in writing (“Landlord’s
Notice”) of Landlord’s receipt of an arms-length offer to lease such space that
Landlord is willing to accept from a bona fide third party offeror (“Bona Fide Offer”)
and setting forth the material terms of the Bona Fide Offer and such other terms as are
herein provided. If the Bona Fide Offer includes space in the Building in addition to
the Refusal Space, then the Refusal Space shall be deemed to include, and this Refusal
Option shall be deemed to apply to, all of the space included in the Bona Fide Offer.
Tenant shall have eight (8) business days after Tenant receives Landlord’s Notice in
which to notify Landlord in writing of its election to lease the Refusal Space upon the
terms set forth in Landlord’s Notice. If Tenant declines to exercise this Refusal
Option or fails to give such written notice within the time period required, Tenant
shall be deemed to have waived this Refusal Option, and Landlord shall be, free to lease
the Refusal Space to the bona fide offeror or any of its Affiliates (“Refusal Space
Tenant”). Landlord agrees to make commercially reasonable efforts to maintain
relocation rights in existing leases for the Refusal Space in the event that Tenant
then or in the future desires to exercise its rights under this Section 16.15
with respect to any unleased portion of the Refusal Space. The Refusal Space shall be
offered to Tenant at the rental rate and upon such other terms and conditions as are
set forth in the Bona Fide Offer and herein.

      (b) If Tenant shall exercise the Refusal Option, the parties shall enter into an
amendment to this Lease adding the Refusal Space to the Leased Premises upon the terms
and conditions set forth herein and making such other modifications to this Lease as
are appropriate under the circumstances. If Tenant shall fail to enter into such
amendment within ten (10) business days following Tenant’s exercise of the Refusal
Option, then Landlord shall thereafter be free to lease the Refusal Space to the
Refusal Space Tenant. If Landlord does not enter into a lease with the Refusal Space
Tenant under substantially similar terms and conditions as contained in the Bona Fide
Offer within one hundred twenty (120) days after Tenant declines or fails to exercise
this Refusal Option, or if Landlord desires to materially alter or modify the terms and
conditions of the Bona Fide Offer, Landlord shall be required to present the altered or
modified Bona Fide Offer to Tenant pursuant to this Refusal Option, in the same manner
that the original Bona Fide Offer was submitted to Tenant. Tenant’s Refusal Option
shall be a continuing Refusal Option, upon the terms contained herein, in the event the
Refusal Space shall be available for lease thereafter.

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      Section 16.16. Option to Extend.

      (a) Grant and Exercise of Option. Provided that (i) no default has occurred
and is then continuing, (ii) the creditworthiness of Tenant is then reasonably acceptably
to Landlord, and (iii) Tenant originally named herein or its Permitted Transferee remains
in possession of and has been continuously operating in the entire Leased Premises
throughout the Lease Term, Tenant shall have one (1) option to extend the Lease Term for
one (1) additional period of five (5) years (the “Extension Term”). The Extension Term
shall be upon the same terms and conditions contained in the Lease except (x) Tenant shall
not have any further option to extend, (y) any improvement allowances or other concessions
applicable to the Leased Premises under the Lease shall not apply to the Extension Term,
and (z) the Minimum Annual Rent shall be adjusted as set forth herein (“Rent Adjustment”).
Tenant shall exercise such option by delivering to Landlord, no later than nine (9) months
prior to the expiration of the current Lease Term, written notice of Tenant’s desire to
extend the Lease Term. Tenant’s failure to properly exercise such option shall be deemed a
waiver of such option. If Tenant properly exercises its option to extend, Landlord shall
notify Tenant of the Rent Adjustment no later than ninety (90) days prior to the
commencement of the Extension Term. Tenant shall be deemed to have accepted the Rent
Adjustment if it fails to deliver to Landlord a written objection thereto within fifteen
(15) business days after receipt thereof. If Tenant properly exercises its option to
extend, Landlord and Tenant shall execute an amendment to the Lease (or, at Landlord’s
option, a new lease on the form then in use for the Building) reflecting the terms and
conditions of the Extension Term within thirty (30) days after Tenants acceptance (or
deemed acceptance) of the Rent Adjustment.

      (b) Rent Adjustment. The Minimum Annual Rent for the Extension Term shall be
an amount equal to the Minimum Annual Rent then being quoted by Landlord to prospective
renewing tenants of the Building for space of comparable size and quality and with similar
or equivalent improvements as are found in the Building, and if none, then in similar
buildings owned by Landlord in the vicinity of the Building; provided, however, that in no
event shall the Minimum Annual Rent during the Extension Term be less than the highest
Minimum Annual Rent payable during the immediately preceding term. The Monthly Rental
Installments shall be an amount equal to one-twelfth (1/12) of the Minimum Annual Rent for
the Extension Term and shall be paid at the same time and in the same manner as provided
in the Lease.

      Section 16.17. Moving Allowance. For and in consideration of Tenant leasing
the Relocated Space for a term often (10) years and provided Tenant is not in default
hereunder, Landlord shall pay to Tenant a moving allowance in an amount not to exceed
Eighty Thousand Dollars ($80,000.00) (the “Moving Allowance”) payable within thirty (30)
days of the Relocated Space Commencement Date.

      Section 16.18. Parking. Tenant shall be entitled to the non-exclusive
use of the parking spaces designated for the Building by Landlord. Tenant agrees not to
overburden the parking facilities and agrees to cooperate with Landlord and other tenants
in the use of the parking facilities. Landlord reserves the right in its absolute
discretion to determine whether parking facilities are becoming crowded and, in such
event, to allocate parking spaces between Tenant and other tenants. There will be no
assigned parking unless Landlord, in its sole discretion, deems such assigned parking
advisable. No vehicle may be repaired or serviced in the parking area and any vehicle
brought into the parking area by Tenant, or any of Tenant’s employees, contractors or
invitees, and deemed abandoned by Landlord will be towed and all costs thereof shall be
borne by the Tenant. All driveways, ingress and egress, and all parking spaces are for the
joint use of all tenants. There shall be no parking permitted on any of the streets or
roadways located within the vicinity of the Building. In addition, Tenant agrees that its
employees will not park in the spaces designated visitor parking.

-7-

 

      Section 16.19. Signage. Landlord, at its cost and expense, shall
provide Tenant with Building standard signage on the main Building directory and at
the entrance to the Leased Premises. Any changes requested by Tenant to the initial
directory or suite signage shall be made at Tenant’s sole cost and expense and shall
be subject to Landlord’s approval. Landlord may install such other signs,
advertisements, notices or tenant identification information on the Building
directory, tenant access doors or other areas of the Building, as it shall deem
necessary or proper. Tenant shall not place any exterior signs on the Leased Premises
or interior signs visible from the exterior of the Leased Premises without the prior
written consent of Landlord. Notwithstanding any other provision of this Lease to the
contrary, Landlord may immediately remove any sign(s) placed by Tenant in violation
of this Section 16.19. Landlord hereby grants to Tenant or its Permitted
Transferees the exclusive right, at Tenant’s sole cost and expense, to erect an
exterior, backlit sign identifying Tenant’s business upon the exterior of the
west-facing side of the Building (the “Sign”) provided that (i) Tenant is not in
monetary default hereunder at any time during the Lease Term (in which case Landlord
may remove the Sign at Tenant’s expense), (ii) Tenant or its Permitted Transferees
remains in possession of and has been continuously operating in at least fifty-five
percent (55%) of the Leased Premises for the Lease Term, (iii) Tenant, at Tenants
cost, is successful in obtaining a variance from the City of Carmel to permit Tenant
to erect the Sign on the exterior of the west-facing side of the Building, and (iv)
Tenant complies with all zoning and other municipal and county regulations. The
location, style and size of the Sign shall be subject to Landlord’s signage
specifications attached hereto as Exhibit J and subject to Landlord’s prior
written approval, such approval not to be unreasonably withheld or delayed; provided,
however, that Landlord shall permit only backlit signs on the Building. Tenant agrees
to maintain such Sign in first-class condition and in compliance with all zoning and
building codes throughout the Lease Term. Landlord agrees to use commercially
reasonable efforts to cooperate with Tenant to obtain a variance from the City of
Carmel to permit Tenant to erect an exterior sign on the Building. Upon the
expiration or such earlier termination of the Lease Term, Tenant shall remove the
Sign and repair all damage to the Building caused thereby. Landlord does not warrant
the availability of such Sign to Tenant. Any language in the Lease notwithstanding,
Tenant shall indemnify and hold harmless Landlord from any and all liability for loss
of or damage or injury to any person (including death resulting therefrom) or
property connected with or arising from the Sign or the rights granted herein.”

          13. Brokerage Commissions. The parties hereby represent and warrant that the only
real estate brokers involved in the negotiation and execution of this Amendment are Duke Realty
Services
Limited Partnership, representing Landlord, and Resource Commercial Real Estate, representing
Tenant. Each party shall indemnify the other party from any and all liability for the breach
of this representation and warranty on its part and shall pay any compensation to any other
broker or person who may be entitled thereto.

          14. Representations and Warranties. The undersigned represent and warrant that
(i) such party is duly organized, validly existing and in good standing (if applicable) in
accordance with the laws of the state under which it was organized; (ii) all action necessary to
authorize the execution of this Amendment has been taken by such party; and (iii) the individual
executing and delivering this Amendment has been properly authorized to do so, and such execution
and delivery shall bind such party.

          15. Examination of Amendment. Submission of this instrument for examination or
signature to Tenant does not constitute a reservation or option, and it is not effective until
execution by and delivery to both Landlord and Tenant.

          16. Definitions. Except as otherwise provided herein, the capitalized terms used
in this Amendment shall have the definitions set forth in the Lease.

          17. Incorporation. This Amendment shall be incorporated into and made a part of the
Lease, and all provisions of the Lease not expressly modified or amended hereby shall remain in
full force and effect.

-8-

 

      
    IN WITNESS WHEREOF, the parties have caused this Amendment to be executed on the day and year
first written above.

	 	 	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DUKE REALTY LIMITED PARTNERSHIP,

an Indiana limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Duke Realty Corporation,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Jennifer K. Burk
	 	 	 	 	 	 	   
	 

	 	 	 	 	 	Jennifer K. Burk
	 	 
	 

	 	 	 	 	 	Senior Vice President 
	 	 
	 

	 	 	 	 	 	Indiana Office	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	APRIMO INCORPORATED,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ William Godfrey	 	 
	 	 	 	 	 
	 	 	Printed:	 	William Godfrey 
	 	 
	 

	 	Title:
	 	CEO	 	 	 	 

[SIGNATURES CONTINUE ON THE FOLLOWING PAGE]

-9-

 

	 	 	 	 	 
	STATE OF INDIANA

	) 	 		 
	 

	) SS: 	

	COUNTY OF HAMILTON

	) 	 		 

     Before me, a Notary Public in and for said County and State, personally appeared Jennifer K.
Burk, by me known and by me known to be the Senior Vice President of Duke Realty Corporation, an
Indiana corporation, the general partner of Duke Realty Limited Partnership, who acknowledged the
execution of the foregoing “Third Amendment to Amended and Restated Office Lease” on behalf of said
partnership.

     WITNESS my hand and Notarial Seal this 31 day of January, 2006.

	 	 	 	 	 
	 

	 	/s/ Nancy R. Wilson
 

Notary Public
	 	 
	 
	 	 	 	 
	 

	 	 

(Printed Signature)
	 	 

	 	 	 
	My Commission Expires: 
                
               
        

	 	 NANCY R. WILSON
	My County of Residence:  
                 
                
     

	 	 Notary Public
	 

	 	 My Commission Expires: July 9, 2008
	 

	 	 My County of Residence: Marion

	 	 	 	 	 	 	 	 	 
	STATE OF Indiana

	 	Indiana
 

	) 	 		 	 	 
	 

	  	 	) SS: 	
	 	 
	COUNTY OF

	 	Marion
 

	) 	 		 	 	 

          Before me, a Notary Public in and for said County and State, personally appeared
William Godfrey by me known and by me known to be the President/CEO
of Aprimo Incorporated, a Delaware corporation, who acknowledged the execution of the foregoing
“Third Amendment to Amended and Restated Office Lease” on behalf of said corporation.

     
     WITNESS my hand and Notarial Seal this 23 of January, 2006.

	 	 	 
	 

	 	/s/ Daniella S. Hughes
	 

	 	 
	 

	 	Notary Public
	 
	 	 
	 

	 	/s/ Daniella S. Hughes
	 

	 	 
	 

	 	(Printed Signature)

	 	 	 
	My Commission Expires: April 21, 2013

My County of Residence: Marion

	 	

-10-

 

 

 

EXHIBIT B-1 

RELOCATED SPACE IMPROVEMENTS

     1. Landlord’s Obligations. Tenant has personally inspected the Relocated Space and
accepts the same “AS IS” without representation or warranty by Landlord of any kind and with the
understanding that Landlord shall have no responsibility with respect thereto except to construct
and install within the Relocated Space, in a good and workmanlike manner, the Relocated Space
Improvements, in accordance with this Exhibit B-1.

     2. Construction Drawings, Cost Statement and Allowance.

          (a) Promptly following the date hereof, Tenant will work with Landlord’s space planner to
develop a space plan for the Relocated Space that is reasonably acceptable to Landlord (the “Space
Plan”). Tenant shall deliver the Space Plan to Landlord within ten (10) days after the date of this
Amendment Within twenty (20) days after Landlord’s receipt of the Space Plan, Landlord shall
prepare and submit to Tenant (i) a set of construction drawings (the “CD’s”) covering all work to
be performed by Landlord in constructing the Relocated Space Improvements in accordance with the
Space Plan, and (ii) a statement of the cost to construct and install the Relocated Space
Improvements (the “Cost Statement”). Tenant acknowledges and agrees that (A) the Cost Statement
shall include design fees and a fee payable to the project’s construction manager or general
contractor, and (B) such construction manager or general contractor may be comprised of a
subsidiary, affiliate or employees of Landlord. Tenant shall have five (5) business days after
receipt of the CD’s and the Cost Statement in which to review both the CD’s and the Cost Statement
and to give Landlord written notice of Tenant’s approval of the CD’s or its requested changes
thereto. Tenant shall have no right to request any changes to the CD’s that would materially alter
the exterior appearance or basic nature of the Building or the Building systems. If Tenant fails to
approve or request changes to the CD’s within five (5) business days after its receipt thereof,
then Tenant shall be deemed to have approved the CD’s and the Cost Statement and the same shall
thereupon be final. If Tenant requests any changes to the CD’s, Landlord shall make those changes
which are reasonably requested by Tenant and shall within ten (10) business days of its receipt of
such request submit the revised portion of the CD’s (and, to the extent applicable, the revised
Cost Statement) to Tenant. Tenant may not thereafter disapprove the revised portions of the CD’s
unless Landlord has unreasonably failed to incorporate reasonable comments of Tenant and, subject
to the foregoing, the CD’s and the Cost Statement, as modified by said revisions, shall be deemed
to be final upon the submission of said revisions to Tenant Tenant shall at all times in its review
of the CD’s and the Cost Statement, and of any revisions thereto, act reasonably and in good faith.
Without limiting the foregoing, Tenant agrees to confirm Tenant’s consent to the CD’s and
acknowledge the Cost Statement in writing within three (3) business days following Landlord’s
written request therefor. Notwithstanding anything to the contrary contained herein, in the event
that the amount of the Cost Statement exceeds One Million Seventeen Thousand Five Hundred
Seventy-six Dollars ($1,017,576.00) (the “ the Allowance”) prior to the execution of any Change
Orders by the parties, the parties shall have an additional fifteen (15) business days to work
together in good faith to revise the CD’s and the Cost Statement in an effort to reduce the amount
of the Cost Statement until the amount of the Cost Statement is either equal to or less than the
Allowance (the “Reconciliation Period”). Upon the expiration of the Reconciliation Period, the
most recent rendition of the CD’s and Cost Statement shall be deemed finally approved by the
parties.

          (b) After the Reconciliation Period, Landlord shall be solely responsible for the difference
between: (i) the actual cost to construct and install the Relocated Space Improvements; and (ii)
the Cost Statement, if the actual cost to construct and install the Relocated Space Improvements
exceeds the amount indicated in the Cost Statement, taking into account any increases or decreases
resulting from any Change Orders (as hereinafter defined), which cost of Change Orders shall be
chargeable to Tenant. Tenant shall be responsible for the cost to construct and install the
Relocated Space Improvements only to the extent that, because of Change Orders or revisions to the
CD’s and Cost Statement approved (or deemed approved) by the parties during the Reconciliation
Period, the amount indicated in the Cost Statement exceeds the Allowance (the “Excess”). Tenant
shall deliver to Landlord, within ten (10) days following Landlord’s written request, an amount
equal to one-half (1/2) of the Excess. Following Substantial Completion of the Relocated Space
Improvements, Tenant shall pay to Landlord the remaining difference of the Excess, if any, within
ten (10) days of Landlord’s request therefor. Tenant’s failure to deliver the payments required in
this paragraph shall entitle Landlord to stop the construction and installation of the Relocated
Space Improvements until such payment is received, and any resulting delay shall constitute a
Tenant Delay (as hereinafter defined) hereunder. In addition, all delinquent payments shall accrue
interest at 15% per annum. If the Allowance exceeds the Cost Statement (taking into account any
increases or decreases resulting from any Change Orders), Tenant shall have the option to utilize
up to One Hundred Thousand Dollars ($100,000.00) of such remainder (the “Remainder”) to cover its
expenses in obtaining or installing within the Leased Premises phone or data processing or
telecommunications systems, wiring, cabling, fixtures, furnishings, future Change Orders submitted
by

Exhibit B-1

Page 1 of 3

 

Tenant after Substantial Completion of the Relocated Space Improvements and/or moving expenses
exceeding the amount of the Moving Allowance provided that Tenant submits to Landlord evidence that
such moving expenses exceed the Moving Allowance. The entire amount of the Allowance must be used
within twelve (12) months after the Relocated Space Commencement Date. Any portion of the Allowance
not used within twelve (12) months after the Relocated Space Commencement Date shall be forfeited.

     3. Schedule and Early Occupancy. Landlord shall provide Tenant with a proposed
schedule for the construction and installation of the Relocated Space Improvements and shall notify
Tenant of any material changes to said schedule. Tenant agrees to coordinate with Landlord
regarding the installation of Tenant’s phone and data wiring and any other trade related fixtures
that will need to be installed in the Relocated Space prior to Substantial Completion. In addition,
if and to the extent permitted by applicable laws, rules and ordinances, Tenant shall have the
right to enter the Relocated Space prior to the scheduled date for Substantial Completion (as may
be modified from time to time) in order to install fixtures and otherwise prepare the Relocated
Space for occupancy, which right shall expressly exclude making any structural modifications.
During any entry prior to the Relocated Space Commencement Date (a) Tenant shall comply with all
terms and conditions of the Lease other than the obligation to pay rent, (b) Tenant shall not
interfere with Landlord’s completion of the Relocated Space Improvements,

(c) Tenant shall cause its personnel and contractors to comply with the terms and conditions of
Landlord’s rules of conduct (which Landlord agrees to furnish to Tenant upon request), and (d)
Tenant shall not begin operation of its business. Tenant acknowledges that Tenant shall be
responsible for obtaining all applicable permits and inspections relating to any such entry by
Tenant.

     4. Change Orders. Tenant shall have the right to request changes to the CD’s at any
time following the date hereof by way of written change order (each, a “Change Order”, and
collectively, “Change Orders”). Provided such Change Order is reasonably acceptable to Landlord,
Landlord shall prepare and submit promptly to Tenant a memorandum setting forth the impact on cost
and schedule resulting from said Change Order (the “Change Order Memorandum of Agreement”). Tenant
shall, within three (3) days following Tenant’s receipt of the Change Order Memorandum of
Agreement, either
(a) execute and return the Change Order Memorandum of Agreement to Landlord, or (b) retract its
request for the Change Order. At Landlord’s option, Tenant shall pay to Landlord (or Landlord’s
designee), within ten (10) days following Landlord’s request, any increase in the cost to construct
the Relocated Space Improvements resulting from the Change Order, as set forth in the Change Order
Memorandum of Agreement Landlord shall not be obligated to commence any work set forth in a Change
Order until such time as Tenant has delivered to Landlord the Change Order Memorandum of Agreement
executed by Tenant and, if applicable, Tenant has paid Landlord in full for said Change Order.

     5. Tenant Delay. Notwithstanding anything to the contrary contained in the Lease, if
Substantial Completion of the Relocated Space Improvements is delayed beyond the Target Relocated
Space Commencement Date as a result of Tenant Delay (as hereinafter defined), then, for purposes of
determining the Relocated Space Commencement Date, Substantial Completion of the Relocated Space
Improvements shall be deemed to have occurred on the date that Substantial Completion of the
Relocated Space Improvements would have occurred but for such Tenant Delay. Without limiting the
foregoing, Landlord shall use commercially reasonable speed and diligence to Substantially Complete
the Relocated Space Improvements on or before the Target Relocated Space Commencement Date.

     6. Letter of Understanding. Promptly following the Relocated Space Commencement Date,
Tenant shall execute Landlord’s Letter of Understanding in substantially the form attached hereto
as Exhibit B-2 and made a part hereof, acknowledging (a) the Relocated Space Commencement
Date, and
(b) except for any punchlist items, that Tenant has accepted the Relocated Space. If Tenant takes
possession of and occupies the Relocated Space, Tenant shall be deemed to have accepted the
Relocated Space and that the condition of the Relocated Space and the Building was at the time
satisfactory and in conformity with the provisions of the Lease in all respects, subject to any
punchlist items.

     7. Definitions. For purposes of this Amendment (a) “Substantial Completion” (or
any grammatical variation thereof) shall mean completion of construction of the Relocated Space
Improvements, subject only to punchlist items to be identified by Landlord and Tenant in a joint
inspection of the Relocated Space prior to Tenant’s occupancy, as established by a certificate of
occupancy for the Relocated Space or other similar authorization issued by the appropriate
governmental authority, if required, and (b) “Tenant Delay” shall mean any delay in the completion
of the Relocated Space Improvements attributable to Tenant, including, without limitation (i)
Tenant’s failure to meet any time deadlines specified herein, (ii) Change Orders, (iii) the
performance of any other work in the Relocated Space by any person, firm or corporation employed by
or on behalf of Tenant, or any failure to complete or delay in completion of such work, (iv)
Landlord’s inability to obtain an occupancy permit for the Relocated Space because of the need for
completion of all or a portion of improvements being installed in the Relocated Space directly by
Tenant, and (v) any other act or omission of Tenant; provided, however, that “Tenant Delay” shall
not include any delay relating to or resulting from the

Exhibit B-1

Page 2 of 3

 

failure of Landlord to remedy to Tenant’s reasonable satisfaction, any item appearing on the
punchlist items in Section 6 of this Exhibit B-1.

Exhibit B-1

Page 3 of 3

 

 

 

EXHIBIT B-2 

LETTER OF UNDERSTANDING

Duke Realty Limited Partnership

Attention:               
               
           , Property Manager

600 East 96th Street, Suite 100

Indianapolis, IN 46240

			
	        RE:	 	Amended and Restated Office Lease dated February 6,2004, as amended by
instruments dated January 10, 2005, August 23, 2005 and ____
(collectively, the “Lease”) between Duke Realty Limited Partnership, an Indiana
limited partnership (“Landlord”) and Aprimo, Incorporated, a Delaware
corporation (“Tenant”) for the Leased Premises located at 900 East
96th Street, Suite 400, Indianapolis, Indiana 46240 (the “Leased
Premises”).

     Dear  
                 
                
      :

       
   The undersigned, on behalf of Tenant, certifies to Landlord as follows:

	 	1.	 	The Relocated Space Commencement Date under the Lease is       
                 
                 .
	 
	 	2.	 	The Relocated Space rent commencement date is          
                 
              .
	 
	 	3.	 	The expiration date of the Lease is           
                 
             .
	 
	 	4.	 	The Lease (including amendments or guaranty, if any) is the entire agreement
between Landlord and Tenant as to the leasing of the Leased Premises and is in full
force and effect.
	 
	 	5.	 	The Landlord has completed the improvements designated as Landlord’s obligation
under the Third Amendment of Amended and Restated Office Lease (excluding punchlist
items as agreed upon by Landlord and Tenant), if any, and Tenant has accepted the
Relocated Space as of the Relocated Space Commencement Date.
	 
	 	6.	 	To the best of the undersigned’s knowledge, there are no uncured events of
default by either Tenant or Landlord under the Lease.

       
   IN WITNESS WHEREOF, the undersigned has caused this Letter of Understanding to be
executed this       day of        
             , 2006.

	 	 	 	 	 	 	 
	 	 	APRIMO, INCORPORATED, a

Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Printed Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Exhibit B-2

Page 1 of 1

 

EXHIBIT D-1 

IRREVOCABLE LETTER OF CREDIT

Duke Realty Limited Partnership

3950 Shackleford Road, Suite 300

Duluth,GA 30096-8269 

Attention:
General Counsel

Duke Realty Limited Partnership

600 East 96th Street, Suite 100

Indianapolis, Indiana 46240

Attention: Chief Financial
Officer

Ladies and Gentlemen:

     At the request and on the instructions of our customer,                      (the
“Applicant”), we hereby establish this Irrevocable Letter of Credit No.(the “Letter of
Credit”) in the amount of $             
         in your favor. This Letter of Credit is effective
immediately and expires on              
       . This Letter of Credit will be automatically renewed
(without amendment) for additional one (1) year periods unless we provide at least sixty (60)
days’ notice to you (at both addresses set forth above) by certified mail or national courier
service that we elect not to renew this Letter of Credit for such additional period. No extension
will be granted, however, which
extends the maturity date of this Letter of Credit beyond           
                   
            [usually 10 years,
but at a minimum, 90 days after the end of the lease term].

     Funds under this Letter of Credit will be made available to you upon receipt by us of (1) a
sight draft in the form of Annex A attached hereto executed by you and (2) a drawing certificate in
the form of Annex B attached hereto executed by you.

     Presentation of any such sight draft and drawing certificate shall be made at our office
located at
[PRESENTATION OFFICE ADDRESS], Attention:          
                 
              , telecopy number (  
   )
                    , during our banking hours of       a.m., Eastern Time to       p.m., Eastern
Time. Presentation hereunder may also be made in the form of facsimile transmission of the
appropriate sight draft and drawing certificate to the preceding address and telecopy number.

     If a sight draft and drawing certificate are presented hereunder by sight or by facsimile
transmission as permitted hereunder, by 11:00 a.m., Eastern Time, payment shall be made to you, or
to your designee, of the amount specified, in immediately available funds, not later than 2:00
p.m.. Eastern Time, on the same day. If a sight draft and a drawing certificate are presented by
you hereunder after the time specified above, payment shall be made to you, or to your designee, of
the amount specified, in immediately available funds, not later than 2:00 p.m., Eastern Time, on
the next business day. If a demand for payment made by you hereunder does not conform to the terms
and conditions of this Letter of Credit, we shall give you notice within one (1) business day after
our receipt of the non-conforming demand, stating the reasons of such non-conformity and that we
will upon your instructions hold any documents at your disposal or return the same to you. Upon
being notified that the demand for payment was not effected in conformity with this Letter of
Credit, you may correct any such non-conforming demand for payment to the extent that you are
entitled to do so and within the validity of this Letter of Credit.

     Partial drawings are allowed under this Letter of Credit. Any drawing under this Letter of
Credit will be paid from our general funds and not directly or indirectly from funds or collateral
deposited with or for our account by the Applicant, or pledged with or for our account by the
Applicant.

     This Letter of Credit is transferable and notwithstanding Article 48 of the Uniform Customs
(as defined below), this Letter of Credit may be successively transferred. Transfer of this Letter
of Credit to a transferee shall be effected only upon the presentation to us of the original of
this Letter of Credit accompanied by a certificate in the form of Annex C. Upon such presentation
we shall transfer the same to your transferee or, if so requested by your transferee, issue a
letter of credit to your transferee with provisions consistent with, and substantially the same as,
this Letter of Credit. Such transfer of this Letter of Credit shall be at no cost to you.

Exhibit D-1

Page 1 of 5

 

     This Letter of Credit shall be subject to the Uniform Customs and Practice for Documentary
Credits (1993 Revision), International Chamber of Commerce Publication No. 500 (the “Uniform
Customs”), which is incorporated into the text of this Letter of Credit by this reference. This
Letter of Credit shall be deemed to be issued under the laws of the State of Indiana and shall be
governed by and construed in accordance with the law of the State of Indiana with respect to
matters not governed by the Uniform Customs and matters on which the Uniform Customs and the laws
of the State of Indiana are inconsistent.

	 	 	 	 	 	 	 
	 	 	Very truly yours,

[ISSUING BANK]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Exhibit D-1

Page 2 of 5

 

ANNEX A 

SIGHT DRAFT

[Date]

At Sight

     Pay to the order of Duke Realty Limited Partnership the sum of                                         
and      /100 Dollars ($         
            ) drawn on [ISSUING BANK], as issuer of its Irrevocable
Letter of Credit No.                
      dated             
        , 20     .

	 	 	 	 	 	 	 	 	 
	 	 	DUKE REALTY LIMITED PARTNERSHIP,

an Indiana limited partnership
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Duke Realty
Corporation, 

its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit D-1

Page 3 of 5

 

ANNEX B

DRAWING CERTIFICATE

[Date]

[ISSUING BANK]

[ADDRESS]

Attention:                    

			
	      Re:	 	Irrevocable Letter of Credit No. (the “Letter of Credit”)
For the Account of              
        (the “Applicant”)

Ladies and Gentlemen:

The undersigned, Duke Realty Limited Partnership (the “Beneficiary”) hereby
certifies that:

     1) The Beneficiary is the lessor under that certain       Lease dated                     , 20      ,
as amended, between the Beneficiary, as lessor, and the Applicant, as lessee (the “Lease”).

     2) The Beneficiary is entitled to payment under the Letter of Credit in the amount of $                    
by reason of the following condition (mark only one):

___ The Applicant has defaulted under the Lease.

___ The expiration date of the Letter of Credit is less than [30] days from the date of
this Certificate.

	 	3)	 	Please direct payment under the Letter of Credit by wire transfer to:

[Depository Bank]

[Depository Bank Address]

ABA No.     
                

Acct. No.      
               

     IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Certificate.

	 	 	 	 	 	 	 	 	 
	 	 	DUKE REALTY LIMITED PARTNERSHIP,

an Indiana limited partnership
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Duke Realty Corporation,

its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit D-1

Page 4 of 5

 

ANNEX C

NOTICE OF TRANSFER

[Date]

[ISSUING BANK]

[ADDRESS]

Attention:                     

			
	      Re:	 	Irrevocable Letter of Credit No          
            (the “Letter of Credit”) For
the Account of                     

Ladies and Gentlemen:

     You are hereby directed to transfer and endorse the Letter of Credit to                     
(the “Transferee”) or to issue in accordance with the terms of the Letter of Credit, a new letter
of credit to the Transferee having the same terms as the Letter of Credit.

     We submit herewith for endorsement or cancellation the original of the Letter of Credit.

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 	 	 
	 	 	DUKE REALTY LIMITED PARTNERSHIP,

an Indiana limited partnership
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Duke Realty Corporation,

its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit D-1

Page 5 of 5

 

 

 

EXHIBIT J

Parkwood Crossing

Signage Specifications

Tenant will not erect any signs except in conformity with the following policy.

	A.	 	Building Sign Requirements

	 	1.	 	All signs will be constructed of individual letters, internally illuminated either
behind a cas/ acrylic (day/night) translucent face material or reverse
illuminated with clear acrylic on the backside of the letter to protect the neon.
All cans to be painted black. The style of the letters may be restricted to
ensure uniformity and maintain sufficient separation and contrast among Tenants.
All trim caps and returns shall be black. Anything other than black is subject to
the Landlord’s approval. Each Tenant’s customary signature will be requested.
	 
	 	2.	 	The size of all Tenants’ signs shall be limited and shall be centered within the
limits of the Tenants’ designated area and shall not project more than six
inches (6”) beyond the fascia of signing area and will conform to the
following criteria:

	 	A.	 	Sign size must meet the City of Carmel’s requirements
for sq. ft, color specifications and fabrication for the area.
	 
	 	B.	 	All permitting and filing fees will be the responsibility of the Tenant.
	 
	 	C.	 	Maximum Length — Shall be limited to 75% of length of
sign area per City of Carmel’s sign requirements.
	 
	 	D.	 	Maximum Height — One (1) line of copy three feet (3’);
two (2) lines four feet (4’) from top of upper line to bottom of lower
line.
	 
	 	E.	 	Tenant logos cannot exceed more than 25% of the sq footage of the signage allowed.
	 
	 	F.	 	Logo colors will be approved on a tenant- by- tenant basis.
	 
	 	G.	 	Landlord reserves the right to accept or deny any
signage approval whether limited by the criteria or not

	 	3.	 	No exposed raceways, neon tubes, ballast boxes or electrical transformers will
be permitted. Sign company names or stamps are to be placed on the topside of the
letters, not visible from the ground.
	 
	 	4.	 	Painted or printed signs on the exterior surface of any building,
including paper signs, stickers or banners are not permitted.
	 
	 	5.	 	Signs with clear face material or exposed neon are not permitted.
	 
	 	6.	 	Sign company must remove chalk lines upon installation. If not removed,
Landlord will remedy and invoice Tenant for removal.
	 
	 	7.	 	Signs shall not be placed on canopy roofs extending above the building’s root
placed on penthouse walls, or placed so as to project above the parapet, canopy or top
of the wall upon which it is mounted.
	 
	 	8.	 	Signs shall not be placed perpendicular to the building.
	 
	 	9.	 	Sign company must notify Landlord 48 hours prior to installation with
Certificate of Insurance
	 
	 	10.	 	No occupant shall have an exterior sign that identifies leased departments
and/or concessionaires operating under the occupant’s business or trade name, nor shall
such sign identify specific brands or products for sale or services offered within a
business establishment, unless such identification is used as part of the occupant’s
trade name.

	B.	 	OTHER SIGNS PERMITTED

	 	1.	 	Landlord shall apply suite labels on Tenant door consistently throughout the

Exhibit J

Page 1 of 2

 

building. Landlord must approve all other signage.

	 	2.	 	Paper or cardboard signs, temporary signs (exclusive of professionally
prepared temporary signs), stickers or decals must be approved by the
landlord.

	C.	 	MONUMENT SIGNS

Landlord will provide individual letters on a double-faced ground monument
sign. Tenant name will conform to all others on the same monument.

	D.	 	TENANT RESPONSIBILITY FOR EXTERIOR BUILDING SIGN

	 	1.	 	Tenant shall submit name of Tenant’s sign contractor and three (3) complete
sets of drawings to Landlord for written approval before fabrication.
	 
	 	2.	 	Sign drawings will include elevation view of building showing sign
dimensions of height of letters and length of sign and color sample of sign
panel, and cross section view through sign letter showing the dimensioned
projection of the face of the letter from the face of the sign panel.
	 
	 	3.	 	Tenant shall lawfully erect sign at its own risk and expense, including
final electrical connection.
	 
	 	4.	 	All signs, including installation, will comply with all local
building and electrical codes.
	 
	 	5.	 	Tenant shall maintain signs in good repair at all times.
	 
	 	6.	 	Upon vacating, Tenant shall remove all signs and repair all damaged caused
by such removal.

WARNING: Landlord shall have NO RESPONSIBILTY WHATSOEVER for any cost, expense or loss arising out
of or in condition with orders for or construction, fabrication or refabrication of signs, whether
or not in conformity with these sign criteria. A permit for erection of desired signage otherwise
in conformity with this sign criteria must first be obtained from the appropriate governing
authority for compliance with its sign criteria before proceeding with orders for or construction,
fabrication or refabrication of any signs.

Exhibit J

Page 2 of 2exv10w61

 

Exhibit 10.61

Martin H. Singer Employment Agreement

-5-

 

PCTEL, INC.

MARTIN H. SINGER EMPLOYMENT AGREEMENT

(amended and restated on September 5, 2007)

     This Agreement, as amended and restated as of September 5, 2007, (the “Effective Date”), is
made and entered into by and between PCTEL, Inc. (the “Company”) and Martin H. Singer
(“Executive”).

     1. Duties and Scope of Employment. Executive will continue to serve as the Company’s
Chief Executive Officer and Chairman of the Board of Directors. Executive will render such
business and professional services in the performance of his duties, consistent with Executive’s
position within the Company, as shall reasonably be assigned to him by the Company’s Board of
Directors (the “Board”). The period of Executive’s employment under this Agreement is referred to
herein as the “Employment Term.”

     2. At-Will Employment. The parties agree that Executive’s employment with the
Company will be “at-will” employment and may be terminated at any time, with or without cause or
notice, by either the Company or Executive.

     3. Compensation.

          (a) Base Salary. During the Employment Term, the Company will pay Executive as
compensation for his services a base salary at an annualized rate (the “Base Salary”) determined by
the Board, or, if such authority is delegated, by the Compensation Committee of the Board (the
“Compensation Committee”). Executive’s annual Base Salary will be reviewed on an annual basis by
the Compensation Committee and the Board of Directors in accordance with the Compensation
Committee’s and the Board’s established procedures for reviewing salaries of the Company’s
executive officers.

          (b) Bonus and Incentives. Executive shall be eligible to receive annual bonuses, long
term incentives and such other elements of compensation (whether in cash or equity) as determined
by and at the discretion of the Board or the Compensation Committee.

     4. Employee Benefits. During the Employment Term, Executive will be entitled to
participate in the employee benefit plans currently and hereafter maintained by the Company of
general applicability to other senior executives of the Company, including, without limitation,
the Company’s group medical, dental, vision, disability, life insurance, and flexible-spending
medical account plans. The Company reserves the right to cancel or change the benefit plans and
programs it offers to its employees at any time.

     5. Vacation. Executive will be entitled to paid vacation of four weeks per year plus
one additional day for each full year of employment (commencing October 1, 2001).

     6. Expenses. The Company will reimburse Executive for reasonable travel,
entertainment or other expenses incurred by Executive in the furtherance of or in connection with
the

-6-

 

performance of Executive’s duties hereunder, in accordance with the Company’s expense
reimbursement policy as in effect from time to time. In addition, the Company will reimburse
Executive for reasonable legal expenses as may be incurred by Executive from time to time in
connection with the legal review of this Agreement and any amendment to this Agreement.

     7. Severance.

          (a) Termination Following a Change of Control. If Executive’s employment is
terminated within twelve (12) months following a Change of Control, the severance and other
benefits to which Executive is entitled shall be governed by the Management Retention Agreement
then in effect between the Company and Executive (which includes the definition of Change of
Control).

          (b) Involuntary Termination other than for Cause; Voluntary Termination for Good Reason
Apart From a Change of Control. If either prior to the occurrence of a Change of Control or
after the twelve (12) month period following a Change of Control, Executive’s employment with the
Company is terminated either (A) involuntarily by the Company for reasons other than Cause, or (B)
by Executive pursuant to a Voluntary Termination for Good Reason, and Executive signs and does not
revoke a standard mutual release of claims with the Company, then, subject to Section 10, Executive
shall be entitled to receive the following benefits from the Company:

               (i) Salary and Bonus Continuation. Executive shall be entitled to receive continuing
payments of salary (less applicable withholding taxes) at the rate equal to Executive’s Base Salary
rate, as then in effect, for a period of twelve (12) months from the date of such termination in
accordance with the Company’s normal payroll policies. In addition, Executive shall be entitled to
receive one hundred percent (100%) of Executive’s maximum potential annual bonus (less applicable
withholding taxes) as in effect for the fiscal year in which Executive’s termination occurs,
payable in equal monthly installments over a period of twelve (12) months from the date of such
termination in accordance with the Company’s normal payroll practices.

               (ii) Benefits. The Company will reimburse Executive for the cost of Executive’s
continued participation in the Company’s health, dental and vision plans at the same level of
coverage as was provided to Executive immediately prior to the termination of Executive’s
employment with the Company (“Company-Paid Coverage”). If such coverage included Executive’s
dependents immediately prior to Executive’s termination, such dependents shall also be covered at
the Company’s expense. Company-Paid Coverage shall continue until the earlier of (i) twelve (12)
months following the date of the termination of Executive’s employment (the “Benefits Termination
Date”), or (ii) the date upon which Executive or Executive’s dependents become covered under
another employer’s group health, dental and vision insurance benefit plans. If, after twelve (12)
months following the Benefits Termination Date, Executive has not become covered under another
employer’s group health, dental and vision insurance benefit plans, Executive may independently
obtain health, dental and vision insurance benefits comparable in the aggregate in scope and
coverage to that provided by the Company to Executive immediately prior to the Benefits Termination
Date, and the Company shall reimburse Executive for the cost of the premiums paid for such benefits
until the earlier of (A) six (6) months following the termination of Company-Paid Coverage, or (B)
the date upon which Executive and Executive’s dependents become covered under another employer’s
group health, dental and vision insurance benefit plans.

-7-

 

               (iii) Partial Accelerated Vesting. All equity awards then held by Executive with
restrictions that are time-based, subject to Executive’s continued service with the Company, shall
partially accelerate or if Executive is then holding unvested shares, the Company’s right to
repurchase the then-unvested shares under each such equity award shall partially lapse, with
respect to the number of shares under each such award that would have become vested or been
released from such repurchase right under each respective equity award if Executive’s employment
with the Company had continued for an additional twelve (12) months following such termination
date. All equity awards then held by Executive with restrictions that are exclusively
performance-based shall immediately vest only as to those awards that are targeted for achievement
during the performance year in which the employment termination occurs (regardless of any actual
level of achievement subsequently determined); all other then unvested performance-based awards
shall be forfeited.

               (iv) Executive Deferred Compensation Plan. Executive shall be entitled to receive all
amounts then owing to him under the Company’s Executive Deferred Compensation Plan based on the
plan provisions as in effect on the execution date of this Agreement.

               (v) Terms. The benefits set forth in this Section 7(b), together with any other
benefits which Executive may be expressly entitled to receive resulting from Executive’s
involuntary termination of employment pursuant to any Company severance and benefit plans and
practices, or pursuant to other agreements with the Company, will be provided to Executive in
accordance with the terms of the related plans or agreements.

     8. Sections 280G and 4999. The Company’s obligations to provide the
compensation, equity and other benefits as set forth in Section 7 above are expressly conditioned
upon Executive’s compliance with the covenants set forth in Section 13 below, and are not
contingent upon any event constituting a change of effective control or ownership of the Company
or in the ownership of a substantial portion of the assets of the Company. In the event that the
severance and other benefits provided for in this Agreement or otherwise payable to Executive (i)
constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for
this Section, would be subject to the excise tax imposed by Section 4999 of the code, then
Executive’s severance benefits under the Employment Agreement shall be payable either

	 	(i)	 	in full, or
	 
	 	(ii)	 	as to such lesser amount which would result in no portion of such severance
benefits being subject to excise tax under Section 4999 of the Code,

whichever of the foregoing amounts, taking into account the applicable federal, state and local
income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive, on an
after-tax basis, of the greatest amount of severance benefits under the Employment Agreement,
notwithstanding that all or some portion of such severance benefits may be taxable under Section
4999 of the Code. Unless the Company and Executive otherwise agree in writing, any determination
required under this Section shall be made in writing by the Company’s independent public
accountants (the “Accountants”), whose determination shall be conclusive and binding upon Executive
and the Company for all purposes. For purposes of making the calculations required by this
Section, the Accountants may make reasonable assumptions and approximations concerning applicable
taxes and may rely on reasonable, good faith interpretations concerning the application of

-8-

 

Sections 280G and 4999 of the Code. The Company and Executive shall furnish to the Accountants
such information and documents as the Accountants may reasonably request in order to make a
determination under this Section. The Company shall bear all costs the Accountants may reasonably
incur in connection with any calculations contemplated by this Section.

     9. Voluntary Termination; Termination for Cause. If Executive’s employment is
terminated by the Company for Cause, or by Executive for any reason, but other than pursuant to a
Voluntary Termination for Good Reason, then (A) all further vesting of any stock option,
restricted stock award or other Company equity compensation held by Executive will cease
immediately and all rights to receive further compensation by the Company to Executive hereunder
will terminate immediately (except as to amounts already earned), and (B) Executive will only be
eligible for severance benefits in accordance with the Company’s established policies as then in
effect.

     10. Death and Disability. If Executive’s employment terminates as a result of death
or Disability, Executive (or his estate, as applicable) shall be entitled to receive the following
benefits from the Company:

          (a) Salary. Executive will only be eligible for benefits in accordance with the
Company’s established policies then in effect.

          (b) Bonuses. Executive shall receive the target bonus in effect for the performance
period during which Executive’s employment is terminated, pro rated for Executive’s length of
service during the performance period up to the date of Executive’s termination. Such bonus shall
be paid to Executive as soon as practicable following the completion of the performance period and
the determination of the amount of bonus to be paid.

          (c) Equity Incentives. All unvested equity incentives, whether time-based or
performance-based, shall immediately accelerate and vest in full, and all repurchase restrictions
in favor of the Company shall immediately lapse. Performance-based incentives in which a range of
incentives above or below the target may be earned dependent on the achievement of different levels
of performance, which this section shall accelerate and vest as to the targeted number of
incentives. 

          (d) Executive Deferred Compensation Plan. In the event of Executive’s death,
Executive shall be entitled to receive the death benefit in accordance with the provisions of the
Executive Deferred Compensation Plan.

     11. Section 409A.

          (a) Distributions. Notwithstanding anything to the contrary in this Agreement, if
Executive is a “specified employee” within the meaning of Section 409A of the Code and the final
regulations and any other guidance promulgated thereunder (“Section 409A”) at the time of his
termination, and the severance payable to Executive, if any, pursuant to this Agreement, when
considered together with any other severance payments or separation benefits which may be
considered deferred compensation under Section 409A (together, the “Deferred Compensation
Separation Benefits”) will not and could not under any circumstances, regardless of when such
termination occurs, be paid in full by the fifteenth day of the third month of the Company’s fiscal
year following Executive’s termination, then only that portion of the Deferred Compensation
Separation Benefits which do not exceed the Section 409A Limit (as defined below) may be made

-9-

 

within the first six (6) months following Executive’s termination of employment in accordance
with the payment schedule applicable to each such payment or benefit. For these purposes, each
severance payment is hereby designated as a separate payment and will not collectively be treated
as a single payment. Any portion of the Deferred Compensation Separation Benefits in excess of the
Section 409A Limit shall accrue and, to the extent such portion of the Deferred Compensation
Separation Benefits would otherwise have been payable within the first six (6) months following
Executive’s termination of employment, will become payable on the first payroll date that occurs on
or after the date six (6) months and one (1) day following the date of Executive’s termination of
employment. All subsequent Deferred Compensation Separation Benefits, if any, will be payable in
accordance with the payment schedule applicable to each payment or benefit.

          (b) Amendment. This provision is intended to comply with the requirements of Section
409A so that none of the Deferred Compensation Separation Benefits to be provided hereunder will be
subject to the additional tax imposed under Section 409A, and any ambiguities herein will be
interpreted to so comply. The Company and Executive agree to work together in good faith to
consider amendments to this Agreement and to take such reasonable actions which are necessary,
appropriate or desirable to avoid imposition of any additional tax or income recognition prior to
actual payment to Executive under Section 409A.

          (c) Section 409A Limit. For purposes of this Agreement, “Section 409A Limit” shall
mean the lesser of two (2) times: (i) Executive’s annualized compensation based upon the annual
rate of pay paid to Executive during the Company’s taxable year preceding the Company’s taxable
year of Executive’s termination of employment as determined under Treasury Regulation
1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or
(ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section
401(a)(17) of the Code for the year in which Executive’s employment is terminated.

     12. Definitions.

          (a) Cause. “Cause” shall mean:

               (i) An act of personal dishonesty taken by Executive in connection with his responsibilities
as an employee and intended to result in substantial personal enrichment of Executive;

               (ii) Executive being convicted of, or a plea of nolo contendere to, a felony;

               (iii) A willful act by Executive which constitutes gross misconduct and which is injurious to
the Company; or

               (iv) Following delivery to Executive of a written demand for performance from the Company
which describes the basis for the Company’s reasonable belief that Executive has not substantially
performed his duties, continued violations by Executive of Executive’s obligations to the Company
which are demonstrably willful and deliberate on Executive’s part and affords Executive a
reasonable opportunity to cure within a reasonable period of time.

          (b) Disability. “Disability” shall mean that:

-10-

 

               (i) Executive is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to result in death or can
be expected to last for a continuous period of not less than twelve (12) months;

               (ii) Executive by reason any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months, receiving income replacement benefits for at least three (3) months under the
Company’s accident and health plan; or

               (iii) Executive is determined to be totally disabled by the Social Security Administration.

          (c) Voluntary Termination for Good Reason. “Voluntary Termination for Good Reason”
shall mean Executive voluntarily resigns after the occurrence of any of the following without
Executive’s express written consent:

               (i) A material reduction of Executive’s duties, authority or responsibilities (including any
change in title that would compromise Executive’s direct reporting responsibility to the Board),
relative to Executive’s duties, authority or responsibilities as in effect immediately prior to
such reduction, or the assignment to Executive of such reduced duties, authority or
responsibilities; provided, however, that a “Voluntary Termination for Good Reason”
shall not be deemed to have occurred in connection with a reduction of duties, title, authority or
responsibilities resulting solely from any change in Executive’s position as Chairman of the Board
as a result of any legislation, statute, rule or regulation (including rule or regulation of
Nasdaq) that would require, or encourage for purposes of prudent corporate governance, the
separation of the roles of the Chairman and the Chief Executive Officer, or any stockholder
proposal to similar effect approved by a majority of the stockholders;

               (ii) A material reduction, without good business reasons, of the facilities and perquisites
(including office space and location) available to Executive immediately prior to such reduction;

               (iii) A material reduction by the Company in the Base Salary of Executive as in effect
immediately prior to such reduction;

               (iv) A material reduction by the Company in the aggregate level of employee benefits,
including bonuses, to which Executive was entitled immediately prior to such reduction with the
result that Executive’s aggregate benefits package is materially reduced (other than a reduction
that generally applies to Company employees); or

               (v) Any act or set of facts or circumstances which would, under Illinois case law or statute,
constitute a constructive termination of Executive.

Provided, however, that before Executive’s employment may be terminated by a Voluntary Termination
for Good Reason, (A) Executive must provide written notice to the Company, within ninety (90) days
of the initial existence of the Voluntary Termination for Good Reason condition, setting forth the
reasons for Executive’s intention to terminate his employment as a result of a Voluntary
Termination for Good Reason and (B) the Company must have an opportunity within

-11-

 

thirty (30) days following delivery of such notice to cure the Voluntary Termination for Good
Reason condition.

     13. Conditional Nature of Severance Payments.

          (a) Noncompete. Executive acknowledges that the nature of the Company’s business is
such that if Executive were to become employed by, or substantially involved in, the business of a
competitor of the Company during the twelve (12) months following the termination of Executive’s
employment (the “Restricted Period”) with the Company for any reason (whether during the Employment
Term or subsequent to the end of such period), it would be very difficult for Executive not to rely
on or use the Company’s trade secrets and confidential information. Thus, Executive agrees and
acknowledges that his right to receive the severance payments and benefits set forth in Section 7
(to the extent Executive is otherwise entitled to such payments and benefits) shall be conditioned
upon Executive not directly or indirectly engaging in (whether as an employee, consultant, agent,
proprietor, principal, partner, stockholder, corporate officer, director or otherwise), nor having
any ownership interest in or participating in the financing, operation, management or control of,
any person, firm, corporation or business that competes in the markets for the Restricted Business
(as defined below) during the Restricted Period; provided, however, that nothing in
this Section 13(a) shall prevent Executive from owning as a passive investment less than one
percent (1%) of the outstanding shares of the capital stock of a publicly-held company if (A) such
shares are actively traded on the New York Stock Exchange or the Nasdaq Global Market and (B)
Executive is not otherwise associated with such company or any of its affiliates. The “Restricted
Business” for purposes of this Agreement is one which is engaged in the design, development,
manufacture, production, marketing, sale, licensing or servicing of any products, or the provision
of any services, that are the same as or substantially similar to those of the Company during the
Restricted Period. Upon any breach of this section, all severance payments and benefits pursuant
to this Agreement shall immediately cease.

          (b) Non-Solicitation. During the twelve (12) months following the termination of
Executive’s employment with the Company for any reason (whether during or after the Employment
Term), Executive agrees and acknowledges that Executive’s right to receive the severance payments
and benefits set forth in Section 7 (to the extent Executive is otherwise entitled to such payments
and benefits) shall be conditioned upon Executive not either directly or indirectly soliciting,
inducing, attempting to hire, recruiting, encouraging, taking away, hiring any employee of the
Company or causing an employee to leave his or her employment either for Executive or for any other
entity or person.

     14. Assignment. This Agreement will inure to the benefit of the heirs, executors and
legal representatives of Executive upon Executive’s death and will be binding upon and inure to
the benefit of any successor of the Company. Any such successor of the Company will be deemed
substituted for the Company under the terms of this Agreement for all purposes. For this purpose,
“successor” means any person, firm, corporation or other business entity which at any time,
whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all
of the assets or business of the Company. None of the rights of Executive to receive any form of
compensation payable pursuant to this Agreement may be assigned or transferred except by will or
the laws of descent and distribution. Any other attempted assignment, transfer, conveyance or
other disposition of Executive’s right to compensation or other benefits will be null and void.

-12-

 

     15. Notices. All notices, requests, demands and other communications called for
hereunder shall be in writing and shall be deemed given (i) on the date of delivery if delivered
personally, (ii) one (1) day after being sent by a well established commercial overnight service,
or (iii) four (4) days after being mailed by registered or certified mail, return receipt
requested, prepaid and addressed to the parties or their successors at the following addresses, or
at such other addresses as the parties may later designate in writing:

If to the Company:

PCTEL, Inc.

8725 West Higgins Road

Suite 400

Chicago, Illinois 60631

Attn: General Counsel

If to Executive:

Martin H. Singer

at the last residential address known by the Company.

     16. Severability. In the event that any provision hereof becomes or is declared by a
court of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue
in full force and effect without said provision.

     17. Arbitration and Equitable Relief.

          (a) Arbitration. Except as provided in Section 17(b) below, Executive agrees that any
dispute or controversy arising out of, relating to, or concerning Executive’s employment with the
Company or the termination of Executive’s employment with the Company, or any interpretation,
construction, performance or breach of this Agreement, shall be settled by arbitration to be held
in Cook County, Illinois, in accordance with the National Rules for Resolution of Employment
Disputes then in effect of the American Arbitration Association, except as provided in Section
17(b) below. The arbitrator may grant injunctions or other relief in such dispute or controversy.
The decision of the arbitrator shall be final, conclusive and binding on the parties to the
arbitration. Judgment may be entered on the arbitrator’s decision in any court having
jurisdiction. The Company and Executive shall each pay one-half of the costs and expenses of such
arbitration, and each party shall separately pay its counsel fees and expenses.

     This arbitration clause constitutes a waiver of Executive’s and the Company’s right to a jury
trial and relates to the resolution of all disputes relating to all aspects of the
employer/employee relationship, including, but not limited to, the following claims:

               (i) Any and all claims for wrongful discharge of employment; breach of contract, both express
and implied; breach of the covenant of good faith and fair dealing, both express and implied;
negligent or intentional infliction of emotional distress; negligent or intentional
misrepresentation; negligent or intentional interference with contract or prospective economic
advantage; and defamation;

-13-

 

               (ii) Any and all claims for violation of any federal, state or municipal statute, including,
but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the
Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, and the
Fair Labor Standards Act; and

               (iii) Any and all claims arising out of any other laws and regulations relating to employment
or employment discrimination.

          (b) Equitable Remedies. Executive agrees that it would be impossible or inadequate to
measure and calculate the Company’s damages from any breach of the covenants set forth in Section
13. Accordingly, Executive agrees that if Executive breaches such covenants, the Company will have
available, in addition to any other right or remedy available, the right to obtain an injunction
from a court of competent jurisdiction restraining such breach or threatened breach and to specific
performance of any such provision of this Agreement. Executive further agrees that no bond or
other security shall be required in obtaining such equitable relief, and Executive hereby consents
to the issuance of such injunction and to the ordering of specific performance.

          (c) Administrative Relief. Executive understands that this Agreement does not
prohibit Executive from pursuing an administrative claim with a local, state or federal
administrative body, such as the Illinois Department of Human Rights, the Equal Employment
Opportunity Commission or the Workers’ Compensation Commission. This Agreement does, however,
preclude Executive from pursuing court action regarding any such claim (other than workers’
compensation claims).

     18. Integration. This Agreement represents the entire agreement and understanding
between the parties as to the subject matter herein and supersedes all prior or contemporaneous
agreements whether written or oral, including any consulting or independent contractor agreements.
No waiver, alteration, or modification of any of the provisions of this Agreement will be binding
unless in writing and signed by duly authorized representatives of the parties hereto.

     19. Tax Withholding. All payments made pursuant to this Agreement will be subject to
withholding of applicable taxes.

     20. Governing Law. This Agreement will be governed by the laws of the State of
Illinois (with the exception of its conflict of laws provisions), and all actions to enforce its
terms will be venued exclusively in Cook County, Illinois.

[remainder of page intentionally left blank]

-14-

 

     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by their duly authorized officers, as of the day and year first above written.

	 	 	 	 	 	 	 
	PCTEL, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ RICHARD C. ALBERDING	 	 	 	Date: September 5, 2007
	 	 	 	 	 
	By:

	 	Richard C. Alberding	 	 	 	 
	Title:

	 	Chair, Compensation Committee of
the Board of 
   Directors	 	 	 	 
	 
	 	 	 	 	 	 
	EXECUTIVE	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ MARTIN H. SINGER	 	 	 	Date: September 5, 2007
	 	 	 	 	 
	Martin H. Singer	 	 	 	 

-15-

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