Document:

Exhibit 10.5

 

	
   

  	
  /s/ DM

  

 

SIXTH AMENDMENT TO LEASE

 

THIS SIXTH AMENDMENT TO LEASE (this “Amendment”)  is dated for
reference purposes as of December 18, 2009, between I & G
CARIBBEAN, INC., a Delaware corporation (“Landlord”),  and ACCURAY INCORPORATED, a Delaware corporation (“Tenant”).

 

R E C I T A L S

 

A.            Landlord’s
predecessor in title (MP Caribbean, Inc.) and Tenant entered into a
certain Industrial

Complex Lease, dated as of July 9, 2003 (the “Original
Lease”),  as amended and
supplemented by the following: First Amendment to Industrial Complex Lease,
dated as of December 9, 2004 (the “First
Amendment”);  Second Amendment to
Industrial Complex Lease, dated as of September 25, 2006 (the “Second
Amendment”);  Third Amendment to Industrial
Complex Lease, dated as of January 16, 2007 (the “Third
Amendment”);  Fourth Amendment to
Industrial Complex Lease, dated as of September 18, 2007 (the “Fourth
Amendment”);  Fifth Amendment to Industrial
Complex Lease, dated as of April 1, 2008 (the “Fifth
Amendment”)  (the Original Lease, as so amended and modified, as
amended hereby, and as the same may be further amended and modified in writing
from time to time is referred to herein as the “Lease”).  Under the terms
of the Lease, Landlord leases to Tenant space which was specified in the Lease
as containing 125,568 rentable square feet (the “Existing
Premises”) described as
40,000 rentable square feet of space (the “Existing
1310 Premises”)  in that certain building located at 1310 Chesapeake
Terrace, Sunnyvale, California, and 32,576 rentable square feet of space (the “Existing
1314 Premises”)  in that certain building located at 1314 Chesapeake
Terrace, Sunnyvale, California (the building located at 1310 Chesapeake
Terrace, Sunnyvale, California, and the building located at 1314 Chesapeake
Terrace, Sunnyvale, California, are referred to collectively as the “1310-1314
Building”),  and 52,992 rentable square
feet of space (the “1315 Premises”)  in that certain
building located at 1315 Chesapeake Terrace, Sunnyvale, California (the “1315
Building”;  the 1310-1314 Building and the 1315 Building are
referred to herein individually as a “Building” and collectively
as the “Buildings”),  which are a part of the
industrial complex commonly known as Caribbean Corporate Center.

 

B.            The Lease term as to
the Existing 1310 Premises and Existing 1314 Premises (together, the “1310-1314
Premises” is scheduled to expire December 31, 2009. The
Lease term as to the 1315 Premises is scheduled to expire May 31, 2010.

 

C.            The rentable area of
the 1310-1314 Premises and 1310-1314 Building will increase by 1,362 square

feet each as a result of Landlord’s Work (defined below).

 

D.            The parties desire to
amend the Lease to provide for:

 

(i) the extension of the Lease term as to the 1310-1314 Premises;

 

(ii) the expansion of the Demised Premises to include space
stipulated by the parties to contain 39,678 rentable square feet (the “1320
Premises”) in that certain
building located at 1320 Chesapeake Terrace, Sunnyvale, California (the “1320
Building”),  as such 1320 Premises is
depicted on Exhibit A attached hereto;

 

(iii) the extension of the Lease term as to the 1315 Premises;

 

(iv) the increase in the rentable area of the Existing 1310-1314
Premises by 1,362 rentable square feet; and

 

(iv) certain other agreements,

 

all as set forth in and subject to the terms and conditions contained in
this Amendment.

 

NOW, THEREFORE, in consideration of these premises and other good and
valuable consideration, the receipt and legal sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

1

 

	
   

  	
  /s/ DM

  

 

1.             Capitalized Terms.  All
capitalized terms which are not specifically defined in this Amendment and which
are defined in the Lease will have the same meaning for purposes of this
Amendment as they have in the Lease.

 

2.             Lease Term.

 

(a)           Subject to the terms and
conditions set forth in this Amendment, the Lease term as to the 1310-1314
Premises is hereby extended to expire (the “1310-14-20
Lease Expiration Date”) on the last day
of the period of 66 months commencing on the 1310-1314 Effective Date. For
purposes hereof, the “1310-1314 Effective Date” means either (i) if
Tenant executes and delivers this Amendment to Landlord by December 23,
2009: December 1, 2009; or (ii) if Tenant does not execute and
deliver this Amendment to Landlord by December 23, 2009: January 1,
2010. The period beginning on the 1310-1314 Effective Date and expiring on the
1310-14-20 Lease Expiration Date is referred to herein as the “Revised
Term”.

 

(b)           Subject to the terms and conditions set forth in this
Amendment, the Lease term as to the 1315 Premises is hereby extended to expire
on the later of September 30, 2010 and the day immediately preceding the
1320 Commencement Date (defined below). However, Tenant may, upon 30 days’
prior written notice to Landlord, request that Landlord extend the Lease term
as to the 1315 Premises by up to three additional months beyond the later of
such dates, in which event Landlord will not unreasonably refuse such request
so long as Landlord has not leased all or a portion of the 1315 Premises to a
third party (the expiration date of the Lease term as to the 1315 Premises, as
the same may be so extended by mutual written agreement between the parties, is
referred to herein as the “1315 Expiration Date”).  Tenant will
deliver to Landlord possession of the 1315 Premises, vacant, with all of
Tenant’s furniture, trade fixtures, equipment, and other personal property
removed, and otherwise in the condition required by the Lease, by the 1315
Expiration Date. Accordingly, (i) pursuant to Article 9.2 of the
Original Lease, Landlord will not require Tenant to remove anchors or
reinforcement existing as of the date hereof in the flooring in portions of the
1315 Premises which were installed by Tenant to accommodate Tenant’s permitted
use so long as the same do not leave holes in the floor or cause the floor
surface to be uneven; and (ii) Tenant will surrender the 1315 Premises in
good condition (subject to the exceptions noted in Article 10.2 of the
Original Lease), but Landlord will not require Tenant to remove leasehold
improvements from the 1315 Premises.

 

(c)           The Lease term as to the 1320 Premises will commence (the “1320
Commencement Date”) on the 120th day after the date on which Landlord delivers
to Tenant possession of the 1320 Premises, regardless of whether the Tenant
Work (as defined in Exhibit B) is completed, but in no case shall
the 120-day period begin before June 1, 2010. The Lease term as to the
1320 Premises will expire on the 1310-14-20 Lease Expiration Date.

 

3.             Expansion
Premises.  Effective as of the 1320 Commencement Date, Landlord
leases to Tenant, and Tenant leases from Landlord, the 1320 Premises. Landlord
will use reasonable efforts to deliver possession of the 1320 Premises on or
about June 1, 2010, but Landlord will have no liability to Tenant for
failure to deliver possession of the 1320 Premises to Tenant by such date.
Landlord and Tenant agree, upon demand by the other, to execute and deliver a
Commencement Date Agreement in the form of Exhibit C attached. If
Landlord makes such demand upon Tenant but Tenant fails to respond within 15
days, then Tenant will irrevocably be deemed to have agreed with Landlord as to
the information set forth in the Commencement Date Agreement so delivered by
Landlord to Tenant. Effective as of the 1310-1314 Effective Date, pursuant to Section 5(d),
the rentable area of the 1310-1314 Premises is hereby deemed to be increased
from 72,576 rentable square feet to 73,938 rentable square feet.

 

Tenant’s Proportionate Share of Common Area Charges during the Revised
Term will be modified and calculated as follows:

 

(a)           1310-1314 Premises:  During the Revised Term, Tenant’s Proportionate Share
of Common Area Charges with respect to the 1310-1314 Premises will be as
follows:

 

	
  (i)

  	
  Tenant’s
  Prorata Share of Building Common Area Costs (1310-1314 Building):

  	
   

  	
  100.00%

  
	
  (ii)

  	
  Tenant’s
  Prorata Share of Parcel Common Area Costs (1310-1314 Building parcel):

  	
   

  	
  49.02%

  

 

2

 

	
   

  	
  /s/ DM

  

 

	
  (iii)

  	
  Tenant’s
  Prorata Share of Industrial Complex Common Area Costs:

  	
   

  	
  28.79%

  

 

(b)           1315 Premises.  Tenant’s
Proportionate Share of Common Area Charges with respect to the 1315 Premises
will be as follows through the 1315 Expiration Date:

 

	
  (i)

  	
  Tenant’s
  Prorata Share of Building Common Area Costs (1315 Building):

  	
   

  	
  100.00%

  
	
  (ii)

  	
  Tenant’s
  Prorata Share of Parcel Common Area Costs (1315 Building parcel):

  	
   

  	
  50.00%

  
	
  (iii)

  	
  Tenant’s
  Prorata Share of Industrial Complex Common Area Costs:

  	
   

  	
  20.63%

  

 

(c)           1320 Premises.  Beginning on the
1320 Commencement Date through the remainder of the Revised Term, Tenant’s
Proportionate Share of Common Area Charges with respect to the 1320 Premises
will be as follows:

 

	
  (i)

  	
  Tenant’s
  Prorata Share of Building Common Area Costs (1320 Building):

  	
   

  	
  100.00%

  
	
  (ii)

  	
  Tenant’s
  Prorata Share of Parcel Common Area Costs (1320 Building parcel):

  	
   

  	
  26.30%

  
	
  (iii)

  	
  Tenant’s
  Prorata Share of Industrial Complex Common Area Costs:

  	
   

  	
  15.45%

  

 

Tenant’s Proportionate Share of Common Area Charges will not be abated
or reduced by or in connection with any abatement of minimum guaranteed rental
pursuant to Section 4 below.

 

4.             Rental.

 

(a)           The minimum guaranteed rental due Landlord from Tenant in
respect of the 1310-1314 Premises from and after the 1310-1314 Effective Date
will be as follows:

 

	
  Period

  	
   

  	
  Minimum

  Guaranteed Rent /

  rsf / month

  	
   

  	
  Annualized

  Minimum

  Guaranteed Rent

  	
   

  	
  Monthly Installments of

  Minimum Guaranteed

  Rent

  	
   

  
	
  1310-1314 Effective Date through the day
  immmediately preceding the 1310-1314 Base Rent Re-Commencement Date

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  1310-1314 Base Rent Re-Commencement Date through
  the last day of the first Revised Term Lease Year

  	
   

  	
  $

  	
  1.25

  	
   

  	
  $

  	
  1,109,070.00

  	
   

  	
  $

  	
  92,422.50

  	
   

  
	
  first day of the second Revised Term Lease Year
  through the last day of the second Revised Term Lease Year

  	
   

  	
  $

  	
  1.30

  	
   

  	
  $

  	
  1,153,432.80

  	
   

  	
  $

  	
  96,119.40

  	
   

  
	
  first day of the third Revised Term Lease Year
  through the last day of the third Revised Term Lease Year

  	
   

  	
  $

  	
  1.35

  	
   

  	
  $

  	
  1,197,795.60

  	
   

  	
  $

  	
  99,816.30

  	
   

  
	
  first day of the fourth Revised Term Lease Year
  through the last day of the fourth Revised Term Lease Year

  	
   

  	
  $

  	
  1.40

  	
   

  	
  $

  	
  1,242,158.40

  	
   

  	
  $

  	
  103,513.20

  	
   

  
	
  first day of the fifth Revised Term Lease Year
  through the last day of the fifth Revised Term Lease Year

  	
   

  	
  $

  	
  1.45

  	
   

  	
  $

  	
  1,286,521.20

  	
   

  	
  $

  	
  107,210.10

  	
   

  
	
  first day of the sixth Revised Term Lease Year
  through the 1310-14-20 Lease Expiration Date

  	
   

  	
  $

  	
  1.50

  	
   

  	
  $

  	
  1,330,884.00

  	
   

  	
  $

  	
  110,907.00

  	
   

  

 

(b)         For purposes hereof, the “1310-1314 Base Rent Re-Commencement Date” means
the first day of the 7th calendar month of the Revised Term. For
purposes hereof, the term “Revised
Term Lease Year” means a period of 12 consecutive months beginning
on the 1310-1314 Effective Date or an anniversary thereof and ending on (and
including) the day immediately preceding the following anniversary thereof
during the Revised Term, except that (a) if the 1310-1314 Effective Date
is not the first day of a calendar month, then the first Revised Term Lease
Year will begin on the 1310-1314 Effective Date and end on (and include) the
following anniversary of the last day of the calendar month in which the
1310-1314 Effective Date occurs, and each subsequent Revised Term Lease Year
will mean a period of 12 consecutive months beginning on an anniversary of the
first day of the calendar month immediately following the calendar month in
which the 1310-1314 Effective Date occurs and ending on (and including) the day
immediately preceding the following anniversary thereof during the Revised
Term, and (b) the last Revised Term Lease Year will end on the last day of
the Revised Term.

 

(c)           The minimum guaranteed rental due Landlord from Tenant in
respect of the 1315 Premises from and after the 1310-1314 Effective Date will
be as follows:

 

3

 

	
   

  	
  /s/ DM

  

 

	
  Period

  	
   

  	
  Minimum

  Guaranteed Rent /

  rsf / month

  	
   

  	
  Annualized

  Minimum

  Guaranteed Rent

  	
   

  	
  Monthly Installments of

  Minimum Guaranteed

  Rent

  	
   

  
	
  1310-1314 Effective Date through the last day of
  the 6th calendar month of the Revised Term

  	
   

  	
  $

  	
  1.25

  	
   

  	
  $

  	
  794,880.00

  	
   

  	
  $

  	
  66,240.00

  	
   

  
	
  First day of the 7th calendar month of the Revised
  Term through the earlier of the 1315 Expiration Date and last day of the 10th
  calendar month of the Revised Term

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  If the 1315 Expiration Date occurs after the last
  day of the 10th calendar month of the Revised Term: first day of the 11th
  calendar month of the Revised Term through the 1315 Expiration Date

  	
   

  	
  $

  	
  1.25

  	
   

  	
  $

  	
  794,880.00

  	
   

  	
  $

  	
  66,240.00

  	
   

  

 

(d)           The minimum guaranteed rental due Landlord from Tenant in
respect of the 1320 Premises will be as follows:

 

	
  Period

  	
   

  	
  Minimum

  Guaranteed Rent /

  rsf / month

  	
   

  	
  Annualized

  Minimum

  Guaranteed Rent

  	
   

  	
  Monthly Installments of

  Minimum Guaranteed

  Rent

  	
   

  
	
  1320 Commencement Date through the day immediately
  preceding the 1320 Base Rent Commencement Date

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  1320 Base Rent Commencement Date through the last
  day of the first Revised Term Lease Year

  	
   

  	
  $

  	
  1.25

  	
   

  	
  $

  	
  595,170.00

  	
   

  	
  $

  	
  49,597.50

  	
   

  
	
  first day of the second Revised Term Lease Year
  through the last day of the second Revised Term Lease Year

  	
   

  	
  $

  	
  1.30

  	
   

  	
  $

  	
  618,976.80

  	
   

  	
  $

  	
  51,581.40

  	
   

  
	
  first day of the third Revised Term Lease Year
  through the last day of the third Revised Term Lease Year

  	
   

  	
  $

  	
  1.35

  	
   

  	
  $

  	
  642,783.60

  	
   

  	
  $

  	
  53,565.30

  	
   

  
	
  first day of the fourth Revised Term Lease Year
  through the last day of the fourth Revised Term Lease Year

  	
   

  	
  $

  	
  1.40

  	
   

  	
  $

  	
  666,590.40

  	
   

  	
  $

  	
  55,549.20

  	
   

  
	
  first day of the fifth Revised Term Lease Year
  through the last day of the fifth Revised Term Lease Year

  	
   

  	
  $

  	
  1.45

  	
   

  	
  $

  	
  690,397.20

  	
   

  	
  $

  	
  57,533.10

  	
   

  
	
  first day of the sixth Revised Term Lease Year
  through the 1310-14-20 Lease Expiration Date

  	
   

  	
  $

  	
  1.50

  	
   

  	
  $

  	
  714,204.00

  	
   

  	
  $

  	
  59,517.00

  	
   

  

 

(e)           For purposes hereof, the “1320
Base Rent Commencement Date”  means the first day of the
calendar month after the calendar month in which the 1320 Commencement Date
occurs, unless the 1320 Commencement Date is not the first day of a calendar
month, in which case the 1320 Base Rent Commencement Date will be the 30th day after the 1320 Commencement Date.

 

(f)            During the Revised Term, Tenant will continue to pay
Tenant’s Proportionate Share of Common Area Charges in accordance with Articles
6 and 7 of Original Lease, as amended, and pursuant to Section 3 above.

 

5.             Preparation and Condition of
Premises.

 

(a)           1310-1314
Premises.  Except for Landlord’s Work
(described below) and except as set forth in the Work Letter attached hereto as
Exhibit B, pursuant to Article 3.1 of the Original Lease,
during the Revised Term the 1310-1314 Premises are being leased “AS IS,” with
Tenant accepting all defects, if any; and Landlord makes no warranty of any
kind, express or implied, with respect to the 1310-1314 Premises (without
limitation, Landlord makes no warranty as to the habitability, fitness, or
suitability of the 1310-1314 Premises for a particular purpose nor as to the
absence of any toxic or otherwise hazardous substances). This Section 5(a) is
subject to any contrary requirements under applicable law; however, in this
regard Tenant acknowledges that it has been given the opportunity to inspect
the 1310-1314 Premises and to have qualified experts inspect the 1310-1314
Premises prior to execution of this Amendment, and that Tenant has occupied and
continues to occupy the 1310-1314 Premises as of the date of this Amendment.

 

4

 

	
   

  	
  /s/ DM

  

 

(b)           1315
Premises.  Pursuant to Article 3.1
of the Original Lease, during the portion of the Revised Term ending on the
1315 Expiration Date, the 1315 Premises are being leased “AS IS,” with Tenant
accepting all defects, if any; and Landlord makes no warranty of any kind,
express or implied, with respect to the 1315 Premises (without limitation,
Landlord makes no warranty as to the habitability, fitness, or suitability of
the 1315 Premises for a particular purpose nor as to the absence of any toxic
or otherwise hazardous substances). This Section 5(b) is subject to
any contrary requirements under applicable law; however, in this regard Tenant
acknowledges that it has been given the opportunity to inspect the 1315
Premises and to have qualified experts inspect the 1315 Premises prior to
execution of this Amendment, and that Tenant has occupied and continues to
occupy the 1315 Premises as of the date of this Amendment.

 

(c)           1320
Premises.  Landlord will deliver to
Tenant possession of the 1320 Premises with the central building systems in
good working condition, including the roof in watertight condition, mechanical,
electrical, plumbing and roll up doors shall be in good working condition and
operable as of the date of delivery of possession. Except for Landlord’s Work
(described below) and except as set forth above in this Section 5(c) and
in the Work Letter attached hereto as Exhibit B, pursuant to Article 3.1
of the Original Lease, during the portion of the Revised Term the 1320 Premises
are being leased “AS IS,” with Tenant accepting all defects, if any; and
Landlord makes no warranty of any kind, express or implied, with respect to the
1320 Premises (without limitation, Landlord makes no warranty as to the
habitability, fitness, or suitability of the 1320 Premises for a particular
purpose nor as to the absence of any toxic or otherwise hazardous substances).
Taking possession of the 1320 Premises by Tenant will be conclusive evidence as
against Tenant that the 1320 Premises were in good and satisfactory condition
when possession was so taken, except as otherwise expressly provided in this Section 5.

 

(d)           Landlord’s
Work.  On the condition that
Landlord receives all required governmental and regulatory permits and
approvals, Landlord will perform the following work at Landlord’s cost on a
one-time basis using building standard materials and methods (“Landlord’s
Work”)  before or
upon the 1320 Commencement Date, subject to force majeure as described in Article 29.5
of the Original Lease: construct a new covered walkway bridge between and
connecting the 1310-1314 Building to the 1320 Building. Such covered walkway
bridge will allow access between such buildings on both floors, and will
provide an unenclosed covering over a ground floor walkway between such
buildings. Except as otherwise expressly set forth in this Amendment, pursuant
to Section 3, Landlord’s Work will be deemed to increase the rentable area
of the 1310-1314 Premises by 1,362 rentable square feet; the parties
acknowledge that the rentable area of the 1320 Premises as set forth in this
Amendment (i.e., 39,678 rsf) already takes into account an allocation of 1,362
rentable square feet attributable to such Landlord’s Work. The parties
acknowledge that Tenant currently occupies the 1310-1314 Premises in which a
portion of Landlord’s Work is to be performed. Tenant will reasonably cooperate
with Landlord to accommodate performance of Landlord’s Work, and Landlord will
reasonably cooperate with Tenant to minimize the disruption to Tenant’s
operations caused by the performance of Landlord’s Work. However, Tenant will
not be entitled to any abatement or reduction of rent by reason of any
interruption to Tenant’s operations caused by the performance of Landlord’s
Work, except for willful misconduct of Landlord or grossly negligent actions of
the Landlord. Tenant agrees that Landlord will not be liable in any way for any
injury, loss or damage which may occur to any of Tenant’s property placed or
installations made in the 1310-1314 Premises during the performance of
Landlord’s Work, the same being at Tenant’s sole risk, except for willful
misconduct of Landlord or grossly negligent actions of the Landlord but in any
event (including such willful misconduct and grossly negligent acts) subject to
the waivers set forth in Article 16 of the Original Lease.

 

6.             Options to Renew.
Subject to the provisions set forth below, the Lease Term may be renewed, at the
option of Tenant (the “Renewal Option”),  for
two (2) additional periods of 60 months each (each, a “Renewal
Term”, and together, the “Renewal Terms”).  Each
Renewal Term will be upon the same terms, covenants and conditions contained in
the Lease, except (i) the rent abatement rights and leasehold improvement
allowances granted under this Amendment will not apply to the Renewal Term; (ii) the
Work Letter attached hereto will not apply to the Renewal Terms; (iii) Section 7
(Right of First Offer) will not apply during the Renewal Terms except that if
Landlord does not offer the Additional Premises (as defined in Section 7)
to Tenant during the Revised Term because the same did not become “available”
(as described in Section 7), then Section 7 will apply during the
first Renewal Term, and if Landlord does not offer the Additional Premises (as
defined in Section 7) to Tenant during the period beginning on the first
day of the Revised Term through the last day of the first Renewal Term because
the

 

5

 

	
   

  	
  /s/ DM

  

 

same did not become “available” (as described in Section 7), then Section 7
will apply during the second Renewal Term; and (iv) minimum guaranteed
rental due for such Renewal Term will be as set forth in this Section 6.
Any reference in the Lease to the “Lease term” will be deemed to include the
Renewal Term (for each Renewal Option exercised) and apply thereto, unless it
is expressly provided otherwise. Tenant will have no renewal option beyond the
aforesaid two 60-month periods.

 

(a)           The minimum
guaranteed rental during the Renewal Term for the Demised Premises will be at a
rate equal to the then Fair Market Rent (as defined in Exhibit D), and for a term
equal or comparable to such Renewal Term. Tenant’s obligation to pay Tenant’s
Proportionate Share of Common Area Charges in accordance with Articles 6 and 7
of Original Lease, as amended, and pursuant to Section 3 above, will
continue during the Renewal Terms.

 

(b)           If Tenant exercises
its Renewal Option, Landlord will grant to Tenant a leasehold improvement
allowance equal to the Fair Market Allowance (as defined in Exhibit D), which Tenant
may apply toward Tenant’s leasehold improvements (upon which Landlord and
Tenant must mutually agree) to the Demised Premises. All costs of such
leasehold improvements in excess of such allowance will be borne by Tenant.
Such leasehold improvements will be performed by Tenant, and such allowance
will be disbursed by Landlord, subject and pursuant to Landlord’s then standard
form of work letter under which Tenant performs the work using an allowance,
which work letter will be prepared by Landlord and substantially comparable to
the Work Letter attached hereto as Exhibit B. Except as
otherwise expressly set forth in this Section, Tenant will be deemed to have
accepted the renewed Demised Premises in “as-is” condition as of the
commencement of such Renewal Term, and except as otherwise expressly set forth
in this Section, Landlord will have no additional obligation to improve,
renovate or remodel the Demised Premises or any portion of the 1310-1314
Building or 1320 Building or provide any allowance therefor as a result of
Tenant’s exercise of its option to renew. Taking into account Tenant’s
creditworthiness, Landlord may require a security deposit or an increase in any
existing security deposit before disbursing any such allowance.

 

(c)           As to the first
Renewal Option, Tenant may deliver an initial nonbinding notice to Landlord (“Tenant’s
Renewal Inquiry Notice”)  within
the time set forth below, in which Tenant requests Landlord’s determination of
Fair Market Rent and Fair Market Allowance. If Tenant delivers Tenant’s Renewal
Inquiry Notice, and if the effective date of such delivery is no earlier than 3
months before such Tenant’s Renewal Exercise Notice Deadline and no later than
31 days before the applicable Tenant’s Renewal Exercise Notice Deadline, then
within 30 days after Tenant’s delivery of such Tenant’s Renewal Inquiry Notice,
Landlord will notify Tenant (“Landlord’s Renewal Notice”)  of Landlord’s calculation of the
Fair Market Rent and Fair Market Allowance for the Premises, which calculation
will reflect the market rate that would be payable per annum for a term
commencing on the first day of the first Renewal Term. If Tenant fails to give
Tenant’s Renewal Inquiry Notice in respect of the first Renewal Term, such failure
will have no effect on Tenant’s right to exercise such Renewal Option. The
parties acknowledge that Tenant’s delivery of a Tenant’s Renewal Inquiry Notice
is nonbinding and does not constitute Tenant’s exercise of a Renewal Option.

 

(d)           If Tenant exercises
its first Renewal Option, then Tenant will have a second Renewal Option, in
connection with which Tenant may deliver Tenant’s Renewal Inquiry Notice to
Landlord within the time period set forth below, in which Tenant requests
Landlord’s determination of Fair Market Rent and Fair Market Allowance. If
Tenant delivers Tenant’s Renewal Inquiry Notice, and if the effective date of
such delivery is no earlier than 3 months before such Tenant’s Renewal Exercise
Notice Deadline and no later than 31 days before the applicable Tenant’s
Renewal Exercise Notice Deadline, then within 30 days after Tenant’s delivery
of such Tenant’s Renewal Inquiry Notice, Landlord will deliver to Tenant
Landlord’s Renewal Notice setting forth Landlord’s calculation of the Fair Market
Rent and Fair Market Allowance for the Premises, which calculation will reflect
the market rate that would be payable per annum for a term commencing on the
first day of the second Renewal Term. If Tenant fails to give Tenant’s Renewal
Inquiry Notice in respect of the second Renewal Term, such failure will have no
effect on Tenant’s right to exercise such Renewal Option.

 

(e)           No later than the
applicable Tenant’s Renewal Exercise Notice Deadline (defined below), Tenant
may deliver to Landlord a final binding notice (“Tenant’s Renewal Exercise Notice”)  in which Tenant (i) exercises
the Renewal Option and, if Landlord has delivered a Landlord’s Renewal Notice,
accepts the terms stated in Landlord’s Renewal Notice, (ii) exercises the
Renewal Option and elects to have Fair Market

 

6

 

	
   

  	
  /s/ DM

  

 

Rent and Fair Market Allowance determined by the process set forth in Exhibit D,
in which case Fair Market Rent and Fair Market Allowance will be so determined;
or (iii) declines to exercise the Renewal Option, in which case Tenant’s
rights under this Section 6 will be null and void. For purposes hereof, “Tenant’s Renewal Exercise Notice Deadline” means,
in the case of the first Renewal Option, 9 months before the 1310-14-20 Lease
Expiration Date, and means, in the case of the second Renewal Option, 9 months
before the last day of the first Renewal Tenn. If Tenant fails to deliver
Tenant’s Renewal Exercise Notice by the Tenant’s Renewal Exercise Notice
Deadline as set forth above, time being of the essence, then Tenant’s rights
under this Section 6 will be null and void.

 

(f)            After Tenant
delivers Tenant’s binding notice exercising an option to renew (and, if
applicable, completion of the dispute resolution process set forth in Exhibit D),
Landlord will deliver to Tenant an amendment to the Lease reflecting the terms
of the renewal, and Tenant will execute such amendment and deliver it to
Landlord within 30 days after receipt. If Tenant fails to execute and deliver
to Landlord the requisite amendment to the Lease within 30 days after
Landlord’s delivery of such amendment to Tenant, such failure (1) will, if
Landlord so elects in Landlord’s sole and absolute discretion, render Tenant’s
exercise of such option to renew null and void; or (2) will, if Landlord
so elects in Landlord’s sole and absolute discretion, have no effect on the
validity of Tenant’s exercise of such renewal option. Time is of the essence
with respect to the giving of Tenant’s exercise notices and execution of such
amendment.

 

(g)           Tenant’s right to
exercise its option to renew the Lease pursuant to this Section is subject
to the following conditions: (i) that on the date that Tenant delivers
notice of its election to exercise its option to renew, and at the commencement
of the Renewal Term, no default by Tenant exists under the Lease (after the
giving of any required notice and expiration of any applicable cure period) and
is continuing; (ii) that Tenant has not been in Monetary Default
(hereinafter defined) under the Lease two or more times during the Revised Term
(For purposes of this Amendment, a “Monetary Default” means the failure of
Tenant to pay any rent or any other sums of money due under the Lease within 5
days after notice from Landlord which has been evidenced by the issuance by
Landlord to Tenant of a statutory notice in accordance with applicable law); (iii) that
Tenant has not assigned the Lease; (iv) that on the date that Tenant
delivers notice of its election to exercise its option to renew, Tenant occupies
at least 100,000 rentable square feet in the 1310-1314 Building and 1320
Building; and (v) Tenant may exercise a Renewal Option only as to the
entire Demised Premises (i.e., the entire 1310-1314 Premises and 1320 Premises,
plus any Additional Premises leased pursuant to Section 7, but excluding
the 1315 Premises), and may not exercise the Renewal Option as to only a
portion thereof.

 

7.             Right of First
Offer. Subject to the provisions set forth hereinafter, Tenant will have a
one-time right of first offer to lease from Landlord all rentable space in the
building located at 1324 Chesapeake Terrace (the “1324 Building”), comprised
of 37,226 rentable square feet
(the “Additional Premises”), on the same terms as contained in
the Lease for the Demised Premises, except (i) the rent abatement rights
and leasehold improvement allowances granted under this Amendment in respect of
the 1310-1314 Premises and 1320 Premises will not apply to the Additional
Premises; (ii) the Work Letter attached hereto will not apply to the
Additional Premises; and (iii) the minimum guaranteed rental due for such
Additional Premises will be as set forth in this Section.

 

The minimum guaranteed rental for the Additional Premises will be at a
rate equal to the Fair Market Rent (as defined in Exhibit D). If
Tenant exercises its right of first offer, Landlord will grant to Tenant a
leasehold improvement allowance equal to the Fair Market Allowance (as defined
in Exhibit D), which Tenant may apply toward Tenant’s initial
leasehold improvements (upon which Landlord and Tenant must mutually agree) to
the Additional Premises. All costs of such leasehold improvements in excess of
such allowance will be borne by Tenant. Such leasehold improvements will be
performed by Tenant, and such allowance will be disbursed by Landlord, subject
and pursuant to Landlord’s then standard form of work letter under which the
tenant performs the work using an allowance, which work letter will be prepared
by Landlord and substantially comparable to the Work Letter attached hereto as Exhibit B.
Except as otherwise expressly set forth in this Paragraph, Tenant will be
deemed to have accepted the Additional Premises in “as-is” condition, and
except as otherwise expressly set forth in this Section, Landlord will have no
additional obligation to improve, renovate or remodel the Additional Premises
or any portion of the 1324 Building or provide any allowance therefor as a
result of Tenant’s exercise of its right of first offer. Landlord may,
Landlord’s reasonable judgment, require an increase in the Security Deposit as
a condition to granting such Fair Market Allowance.

 

The
provisions of this Section 7 will apply to all or any of the Additional
Premises as all or any of the Additional

 

7

 

	
   

  	
  /s/ DM

  

 

Premises may become available for lease, subject and subordinate to any
expansion and renewal options and other rights of any current tenant or
tenants, their successors or assigns in the Building, and to any extensions or
renewals of existing leases for the Additional Premises. However, Tenant may
not exercise its rights under this Section as to less than all of the
Additional Premises offered by Landlord.

 

Within 10 business days after the effective date of written notice from
Landlord that all or some of the Additional Premises is available for lease and
setting forth Landlord’s determination of Fair Market Rent and Fair Market
Allowance for such Additional Premises, Tenant will deliver to Landlord a
binding notice (“Tenant’s ROFO Notice”) in
which Tenant (i) exercises the right of first offer and accepts the terms
stated in Landlord’s notice, (ii) exercises the right of first offer but
elects to have Fair Market Rent and Fair Market Allowance determined by the
process set forth in Exhibit D, in which case Fair Market
Rent and Fair Market Allowance will be so determined; or (iii) declines to
exercise the right of first offer. If Tenant declines to exercise its right of
first offer as above provided for, or fails to deliver Tenant’s ROFO Notice
thereof within the time period stipulated above, this right of first offer will
lapse and be of no further force and effect with respect to the subject portion
of the Additional Premises. If Tenant exercises the right of first offer
granted herein, Landlord will prepare, and Landlord and Tenant will enter into,
an amendment to the Lease to incorporate the respective portion of the
Additional Premises and to make necessary adjustments to the minimum guaranteed
rental and similar provisions of the Lease. If Tenant fails to execute and
deliver to Landlord the requisite amendment to the Lease within 30 days after
Landlord’s delivery of such amendment to Tenant, such failure (1) will, if
Landlord so elects in Landlord’s sole and absolute discretion, render Tenant’s
exercise of such option to renew null and void; or (2) will, if Landlord
so elects in Landlord’s sole and absolute discretion, have no effect on the
validity of Tenant’s exercise of such right of first offer.

 

Time is of the essence with respect to the giving of Tenant’s ROFO
Notice and execution of such amendment. If Tenant accepts Landlord’s offer,
Tenant must accept all of the Additional Premises then being offered by
Landlord, and may not exercise its right with respect to only part of such
space.

 

The foregoing right of first offer may not be severed from this Lease or
separately sold, assigned or transferred and is subject to the following
additional conditions, namely: (a) that no less than 24 months remain on
the then current Lease term; (b) that the Lease term for any Additional
Premises will run concurrently with the Lease term for the 1310-1314 Premises; (c) that,
at the time that Tenant exercises this right of first offer for any Additional
Premises, Tenant must not be in default of any term, covenant or obligation of
the Lease, after the giving of any required notice and expiration of any
applicable cure period; and (d) that, at the time Tenant exercises this
right of first offer, Tenant occupies and is in possession of the Demised Premises
and has not assigned the Lease or sublet the Demised Premises or any portion
thereof.

 

8.             Parking.

 

(a)           During the Lease Term, Tenant will have the non-exclusive
use in common with Landlord, other tenants of the 1310-1314 Building and 1320
Building (or the Complex), their guests and invitees, of the non-reserved
common automobile parking areas, driveways, and footways of the 1310-1314
Building and 1320 Building, subject to rules and regulations for the use
thereof as prescribed from time to time by Landlord.

 

(b)           Tenant’s use of the Building’s parking areas (including,
without limitation, unassigned parking and any assigned parking now or
hereafter granted to Tenant from time to time) may not exceed 3.5 parking
spaces per 1,000 rentable square feet in the Demised Premises; provided,
however, that for the purposes of calculating Tenant’s allowable use of parking
spaces pursuant to this Section, the rentable area added to the 1310-1314
Premises (1,362 rentable square feet) and to the 1320 Premises (1,362 rentable
square feet) on account of Landlord’s Work will be excluded from the total
rentable area of the Demised Premises. No specific designated parking spaces
will be assigned to Tenant unless otherwise agreed by Landlord and Tenant in
writing. Landlord will have the right to reserve parking spaces as it elects
and condition use thereof on such terms as it elects.

 

(c)           All such parking shall be subject to rules and
regulations for the use thereof as prescribed from time to time by Landlord.
Landlord will not be responsible for money, jewelry, automobiles or other
personal property lost in or stolen from the Building’s parking areas, or for
vandalism to automobiles occurring in the parking areas, it being agreed that,
to the fullest extent permitted by law, the use of the

 

8

 

	
   

  	
  /s/ DM

  

 

parking areas will be at the sole risk of Tenant and its employees. Upon
prior written notice to Tenant (except that no notice will be required in the
event of an emergency), Landlord will have the right to temporarily close such
parking areas to perform necessary repairs, maintenance and improvements to the
parking areas.

 

9.             Signage.  Landlord
agrees that, for so long as Tenant leases and occupies at least 37,000 rentable
square feet of space in the 1320 Building, subject to the terms and conditions
set forth in this Section, Tenant will have the nonexclusive right, at Tenant’s
sole cost and expense, to install a sign, in a location designated by Landlord
and reasonably approved by Tenant, on the 1320 Building indicating the name
Accuray, or Accuray Incorporated (the “1320
Building Sign”), or,
if Accuray Incorporated assigns this Lease under an assignment approved by
Landlord and if Landlord approves the name of the assignee (which approval will
not be unreasonably withheld so long as such name is befitting of the class of
the Building) as being suitable on the 1320 Building Sign, the name (as so
approved by Landlord) of such assignee. If Tenant leases or occupies, in the
aggregate, less than 37,000 rentable square feet in the 1320 Building, then
upon not less than 30 days’ prior written notice, Landlord may require Tenant
to remove the 1320 Building Sign, at Tenant’s sole expense. Nothing in this Section will
give Accuray Incorporated or Tenant naming rights to the 1320 Building. The
Tenant has no right to name the 1320 Building and Landlord has no obligation to
name the 1320 Building after Tenant. The following terms and conditions will
apply to the 1320 Building Sign:

 

(a)           The 1320 Building
Sign must comply with the Signage Criteria set forth in Exhibit E.

 

(b)           The 1320 Building
Sign must comply, and Tenant will at Tenant’s cost cause the 1320 Building Sign
to be and to remain in compliance, with the laws, statutes, ordinances, requirements
and codes of all federal, state and local governmental and quasi-governmental
authorities having jurisdiction over the 1320 Building.

 

(c)           The 1320 Building
Sign must comply, and Tenant will at Tenant’s cost cause the 1320 Building Sign
to be and to remain in compliance, with all applicable insurance requirements
of both Landlord’s insurer and Tenant’s insurer.

 

(d)           The 1320 Building
Sign must comply, and Tenant will at Tenant’s cost cause the 1320 Building Sign
to be and to remain in compliance, with all covenants, conditions and
restrictions of record and the rules, regulations or requirements of any
property association to which the 1320 Building is subject.

 

(e)           Tenant will, at its
sole expense, maintain the 1320 Building Sign in good condition at all times
during the Lease term.

 

(f)            If Landlord becomes
aware that the 1320 Building Sign is in violation of this Section 9,
Landlord will so notify Tenant. If Tenant becomes aware, whether by notice from
Landlord or otherwise, that the 1320 Building Sign is in violation of this Section 9,
Tenant will promptly correct such violation. If Tenant fails to correct any
such violation within 30 days after written notice from Landlord, then upon
written demand by Landlord, Tenant will, at its sole cost and expense,
immediately remove the 1320 Building Sign and repair and restore any damage
caused by its installation or removal, and Tenant’s right to the 1320 Building
Sign will terminate.

 

(g)           Upon expiration or
earlier termination of the Lease, or upon expiration or termination of Tenant’s
right to the 1320 Building Sign (as provided above), Tenant will, at its sole
cost and expense, remove the 1320 Building Sign and repair and restore any
damage caused by its installation or removal, including, without limitation,
restoring such portion of the 1320 Building to an architectural and aesthetic
whole.

 

(h)           Landlord will have
the right, at Landlord’s cost, to temporarily remove the 1320 Building Sign in connection
with any repairs in or upon the Building.

 

(i)            Tenant’s rights to
the 1320 Building Sign shall be for the benefit of Accuray Incorporated and
cannot be transferred under an assignment or sublease.

 

10.           Authority; Not
Restricted.  Landlord and Tenant each represent and warrant to
the other that this Amendment has been duly authorized, executed and delivered
by and on behalf of each party hereto and constitutes the valid and binding
agreement of Landlord and Tenant in accordance with the terms hereof. Tenant

 

9

 

	
   

  	
  /s/ DM

  

 

warrants and represents to Landlord that Tenant is not, and shall not
become, a person or entity with whom Landlord is restricted from doing business
under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury
(including, but not limited to, those named on OFAC’s Specially Designated and
Blocked Persons list) or under any statute, executive order (including, but not
limited to, the September 24, 2001, Executive Order Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or
Support Terrorism), or other governmental action and is not and shall not
engage in any dealings or transaction or be otherwise associated with such
persons or entities.

 

11.           Estoppel.  Contemporaneously
with Tenant’s execution and delivery of this Amendment, Tenant will execute and
deliver to Landlord the estoppel certificate attached hereto as Exhibit F,
with all blanks properly filled in.

 

12.           Real Estate
Brokers.  Each party hereto hereby represents and warrants to the
other that in connection with this Amendment, the party so representing and
warranting has not dealt with any real estate broker, agent or finder, except
for CB Richard Ellis and GVA Kidder Matthews (together, the “Brokers”), and, to its knowledge no other broker initiated or participated
in the negotiation of this Amendment, submitted or showed the applicable
premises to Tenant or is entitled to any commission in connection with this
Amendment. Each party hereto will indemnify, defend and hold harmless the other
against any and all claims, costs, liabilities and expenses (including, without
limitation, reasonable attorneys’ fees) in connection with any inaccuracy in
such party’s representation. Landlord hereby agrees that it will pay a
commission to the Brokers according to a separate agreement.

 

13.           Stipulation.  The
Demised Premises are stipulated for all purposes to contain the number of rentable
square feet as set forth in this Amendment. Unless otherwise expressly provided
herein, any statement of square footage set forth in this Amendment, or that
may have been used in calculating rental, is an approximation which Landlord
and Tenant agree is reasonable and the rental based thereon is not subject to
revision whether or not the actual square footage is more or less.

 

14.           Counterparts.  This
Amendment may be executed in any number of counterparts and by each of the undersigned
on separate counterparts, and each such counterpart will be deemed to be an
original, but all such counterparts will together constitute but one and the
same Amendment.

 

15.           Radon.  Radon
is a naturally occurring radioactive gas that, when it has accumulated in a
building in sufficient quantities, may present health risks to persons who are
exposed to it over time. Levels of radon that exceed federal and state
guidelines have been found in buildings in Florida. Additional information
regarding radon and radon testing may be obtained from your county health
department.

 

16.           Time of Essence.  Time
is of the essence of this Amendment.

 

17.           No Offer.  Submission
of this instrument for examination or negotiation will not bind Landlord, and no
obligation on the part of Landlord will arise until this Amendment is executed
and delivered by both Landlord and Tenant.

 

18.           Entire Agreement.  This
Amendment and the Lease contain all the terms, covenants, conditions and agreements
between Landlord and Tenant relating to the extension of the Lease term and the
other matters provided for in this instrument. No prior or other agreement or
understanding pertaining to such matters other than the Lease will be valid or
of any force or effect. This Amendment may only be modified by an agreement in
writing signed by Landlord and Tenant.

 

19.           Electronic
Delivery.  The parties agree that this agreement may be
transmitted between them by facsimile machine or email. The parties intend by
faxed or scanned signatures (such as, without limitation, scanned signatures in
..pdf format) constitute original signatures and that a faxed or scanned agreement
containing the signatures (original, faxed or scanned) of all the parties is
binding on the parties.

 

20.           Limitation on
Liability.  The liability of Landlord to Tenant under this
Amendment will be limited as provided in Article 29.3 the Original Lease,
which Article is incorporated herein by reference as though fully set
forth herein.

 

[Remainder of this page left
intentionally blank]

 

10

 

	
   

  	
  /s/ DM

  

 

21.           Lease in Full
Force and Effect.  As modified hereby, the Lease and all of the
terms and provisions thereof remain in full force and effect and are
incorporated herein as if herein fully recited.

 

	
  Tenant:
  ACCURACY INCORPORATED, a

  	
   

  	
  LANDLORD:
  I & G CARIBBEAN, INC.

  
	
  Delaware
  corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Chris A. Raanes

  	
   

  	
  By:

  	
  /s/
  Joseph G. Munoz

  
	
  Name:

  	
  Chris A. Raanes

  	
   

  	
  Name:

  	
  Joseph
  G. Munoz

  
	
  Title:

  	
  Sr.
  Vice President Chief Operating Officer 

  Accuray Incorporated

  	
   

  	
  Title:

  	
  Vice
  President

  
	
  (Chairman
  of Board President or Vice

  President)

  	
   

  	
   

  	
   

  
	
  Date:

  	
  12/18/09

  	
   

  	
  Date:

  	
  12/28/09

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Darren J. Milliken

  	
   

  	
   

  
	
  Name:

  	
  Darren J. Milliken

  	
   

  	
   

  
	
  Title:

  	
  Corporate Secretary

  	
   

  	
   

  
	
   

  	
  Accuray Incorporated

  	
   

  	
   

  
	
  (Secretary,
  Assistant Secretary, CFO or

  Assistant Treasurer

  	
   

  	
   

  
	
  Date:

  	
  12-18-2009

  	
   

  	
   

  

 

 

S-1

 

	
   

  	
  /s/ DM

  

 

Exhibit A

 

1320 Premises Floor Plan

 

A-1

 

	
   

  	
  /s/ DM

  

 

Exhibit B

 

Work Letter

 

1.                                       PLANNING. Tenant
will engage an interior office space planner (“Space
Planner”), subject to
Landlord’s prior written approval. Tenant will cause the Space Planner to
prepare a detailed space plan (the “Space
Plan”) for any
improvements and alterations that Tenant desires to perform on the 1310-1314
Premises and 1320 Premises (the “Tenant Work”). Landlord will review the Space Plan
and either approve or disapprove the Space Plan within 7 business days after
the date Landlord receives the Space Plan. If Landlord does not approve the
Space Plan, Landlord will inform Tenant in writing of its objections and Tenant
will revise the same and deliver a corrected version to Landlord for its
approval. The approval and revision process for the revised Space Plan will be
the same as described in the previous 2 sentences.

 

After the Space Plan has been approved by Landlord, Tenant will engage a
licensed architect (the “Architect”) (who may be the same as the Space
Planner), subject to Landlord’s written approval, to prepare architectural
plans and specifications (the “Proposed  Architectural Plans”) for the Tenant Work. The Proposed Architectural Plans will
consist of fully dimensioned and complete sets of plans and specifications,
including detailed architectural plans for the Tenant Work, and will include
the following, to the extent applicable: (i) reflected ceiling plan,
including lighting, switching and special ceiling specifications, (ii) details
of all millwork, (iii) dimensions of all equipment and cabinets to be
built in, (iv) furniture plan showing details of space occupancy,
(v) keying schedule (Premises must be keyed to permit entry by Building
master key), if any, (vi) lighting arrangement, (vii) weight and
location of heavy equipment, and anticipated electrical and mechanical loads
for special usage rooms, (viii) demolition plan, (ix) partition
construction plan, (x) all requirements under the Americans With
Disabilities Act and other applicable acts, laws, or governmental rules or
regulations pertaining to persons with disabilities, and all other applicable
governmental requirements, and (xi) final finish selections, and any other
details or features requested by the Architect or Landlord. Tenant or the
Architect will also engage such licensed engineering firms (“Engineer”) as may be required or
appropriate in connection with preparing mechanical, electrical, fire
protection/life safety, plumbing, HVAC, structural (if necessary), or other
plans and specifications (the “Proposed
Engineering Plans”). The
Engineer will be subject to Landlord’s approval (not to be unreasonably
withheld, conditioned or delayed). The Proposed Engineering Plans will include
the following, to the extent applicable: (i) all electrical outlet
locations, circuits and anticipated usage therefor, (ii) duct locations
for HVAC equipment, (iii) special HVAC equipment and requirements, and any
other details or features reasonably requested by Landlord’s Architect or
Landlord in order for the Proposed Engineering Plans to serve as a basis for
contracting the Tenant Improvements. The Proposed Architectural Plans and
Proposed Engineering Plans are referred to herein collectively as the “Proposed Plans”.

 

Tenant will, within 45 days after the date of Landlord’s approval of the
Space Plan, deliver 3 copies of the Proposed Plans to Landlord for its
approval. The Proposed Plans will be substantially consistent with the Space
Plan without any material changes. Landlord or Landlord’s outside architect
and/or engineer will review the Proposed Plans, and the approval and revision
process for the Proposed Plans will be identical to the approval and revision
process for the Space Plan described above, except that Landlord’s review
period will be 10 business days (as so approved, the “Plans”). For
purposes of this Work Letter, the “Tenant
Work” means: (A) purchase and installation of the improvements
and items of work shown on the Plans, and (B) any demolition, preparation
or other work required in connection therewith.

 

Landlord will notify Tenant at the time Landlord approves the Proposed
Plans whether Landlord will require Tenant to remove the Tenant Work or
portions thereof upon expiration or earlier termination of the Lease (and to
repair and restore any damage to the Premises caused by such installation or
removal or both) pursuant to the Lease, and if Landlord does not so notify
Tenant then such removal of the Tenant Work will not be required; provided,
however, that in all events Tenant will be obligated to remove, pursuant to the
Lease, the demonstration cell and the light lead shielding around the same in
the 1310-1314 Premises.

 

2.                                       SELECTION OF
CONTRACTOR AND CONSTRUCTION OF TENANT WORK.

 

2.1                                 Contractor
Bidding.  After final approval of the Plans by Landlord, Tenant will
promptly submit for pricing the approved Plans to one or more contractors
selected by Tenant and reasonably approved by Landlord.

 

2.2                                 Selection of
Tenant Contractor.  Tenant may negotiate with the
contractor(s), but in any event Tenant will accept one of the bids (or the only
bid, as the case may be) and enter into a contract with the

 

B-1

 

	
   

  	
  /s/ DM

  

 

selected contractor (the “Tenant
Contractor”) within a
reasonable time after the date Tenant receives the bid proposal(s). Tenant
agrees to notify Landlord promptly of its decision.

 

2.3                                 Work Standards.  The
Tenant Contractor must (and its contract must so provide):

 

a.                                       conduct its work
in such a manner so as not to unreasonably interfere with other tenants,
building operations, or any other construction occurring on or in the Complex
or Building;

 

b.                                      execute a set of
and comply with the Contractor Rules and
Regulations attached hereto as Schedule
1 and comply with all additional rules and regulations relating
to construction activities in or on the building or Complex as may be
reasonably promulgated from time to time and uniformly enforced by Landlord or
its agents;

 

c.                                       maintain such
insurance in force and effect as may be reasonably requested by Landlord or as
required by applicable law; and

 

d.                                      be responsible
for reaching an agreement with Landlord and its agents as to the terms and
conditions for all contractor items relating to the conducting of its work
including, but not limited to, those matters relating to hoisting, systems
interfacing, use of temporary utilities, storage of materials and access to the
1310-1314 Premises and 1320 Premises.

 

Landlord will have the right to approve all subcontractors to be used by
Tenant’s Contractor, which approval will not be unreasonably withheld. As a
condition precedent to Landlord permitting the Tenant Contractor to commence
the Tenant’s Work, Tenant and the Tenant Contractor will deliver to Landlord
such assurances or instruments as may be reasonably requested by Landlord to
evidence the Tenant Contractor’s and its subcontractors’ compliance or
agreement to comply with the provisions of this Paragraph 2.3.

 

2.4                                 Indemnity.  Tenant
will indemnify, defend and hold harmless Landlord, Landlord’s mortgagee and
their respective agents or employees against any claims, costs, including
reasonable attorneys’ and paralegals’ fees, and liabilities, including without
limitation, for injury to or death of any person, damage to any property and
mechanics’ liens or other liens or claims, arising out of or in connection with
the work done by Tenant Contractor (and its subcontractors and
sub-subcontractors) under its contract with Tenant.

 

2.5                                 Permits.  Tenant
will cause the Tenant Contractor to apply for any building permits, inspections
and occupancy certificates required for or in connection with the Tenant Work,
and will promptly submit to Landlord copies of the same. Tenant may not commence
the Tenant Work unless and until all required permits are obtained.

 

2.6                                 Change Orders.  Tenant
may authorize change orders in the Tenant Work, but all such changes must be
submitted to Landlord for approval. The approval process therefor will be the
same as the approval process for the Plans. Tenant will be responsible for any
delays or additional costs caused by such change orders.

 

2.7                                 As-Built Plans.  Tenant
will deliver to Landlord a copy of the as-built plans and specifications for the
Tenant Work, and a copy of all operations and maintenance manuals for any
equipment constituting a part of the Tenant Work and, pursuant to the Lease, to
remain in the 1310-1314 Premises and 1320 Premises upon expiration of the Lease
Term, within 30 days after completion of the Tenant Work.

 

2.8                                 Compliance.  Tenant
will cause the Tenant Work to comply in all respects with the following:
(1) the approved Plans, (2) all applicable building codes and other
applicable governmental codes, laws, ordinances, rules and regulations,
including the Americans With Disabilities Act and other applicable acts, laws,
or governmental rules or regulations pertaining to persons with
disabilities, and (3) the work rules and procedures set forth in
Schedule I attached hereto. Landlord’s right to review plans and specifications
and to monitor construction will be solely for its own benefit, and Landlord
will have no duty to see that such plans and specifications or construction
comply with applicable laws, codes, rules and regulations.

 

B-2

 

	
   

  	
  /s/ DM

  

 

3.                                       COST OF THE
TENANT WORK; AND ALLOWANCE.

 

3.1                                 Cost of The
Tenant Work.  Except for the Allowance to
be provided by Landlord as described below, Tenant will pay all costs (the “Cost of the Tenant Work”) associated with the Tenant Work
whatsoever, including, without limitation, all costs for or related to:

 

a.                                       the so-called
“hard costs” of the Tenant Work, including, without limitation, costs of labor,
hardware, equipment and materials, contractors’ charges for overhead and fees,
and so-called “general conditions” (including rubbish removal, utilities,
freight elevators, hoisting, field supervision, building permits, occupancy
certificates, inspection fees, utility connections, bonds, insurance, and sales
taxes); and

 

b.                                      the so-called
“soft costs” of the Tenant Work, including, without limitation, the Space Plan,
the Plans, and all revisions thereto, and any and all engineering reports or
other studies, reports or tests, air balancing or related work in connection
therewith.

 

3.2                                 Allowance.  Landlord will
provide an allowance (the “Allowance”) of up to $1,330,704, calculated as
follows: (i) $12 x 72,576 rsf (i.e., excluding the increase resulting from
Landlord’s Work) in 1310-1314 Premises; plus (ii) $12 x 38,316 rentable
square feet (i.e., excluding the increase resulting from Landlord’s Work) in
1320 Premises. The Allowance may be applied solely toward (a) the Cost of
the Tenant Work, and (b) either (i) Tenant’s reasonable out-of-pocket
moving expenses in moving from the 1315 Premises to the 1320 Premises, plus the
cost of installing and reconfiguring previously owned workstations in the 1320
Premises, or (ii) the cost of purchasing and wiring new work stations for
the 1320 Premises (the uses toward which the Allowance may be applied pursuant
to this clause (b) are referred to as “Other
Permitted Costs”); provided,
however, that the portion of the Allowance that may be applied toward Other
Permitted Costs may not exceed $332,676 ($3 x 110,892 rsf) in the cumulative
aggregate. The Allowance may not be used for any other purpose. Landlord will
have no obligation to disburse the Allowance or any portion thereof so long as
any default by Tenant exists under the Lease (after the giving of any required
notice and expiration of any applicable cure period) and is continuing. The
Cost of the Tenant Work toward which the Allowance may be applied pursuant to
this Work Letter must have been incurred by Tenant on or before the 330th day after the 1320 Commencement Date, for
Tenant Work performed pursuant to this Letter which is commenced after November 1,
2009 and completed by the 330th day after the 1320 Commencement
Date, and all draw requests and backup documentation with respect to the
Allowance to be applied to the Cost of the Tenant Work must be submitted by
Tenant to Landlord on or before such 330th day after the
1320 Commencement Date. Any portion of the Allowance which becomes unavailable
due the foregoing deadlines may be retained by Landlord, and Landlord will be
entitled to such savings without credit to Tenant therefor. If Landlord
disburses any portion of the Allowance toward those Other Permitted Costs
described in Section 3.2(b)(ii) above, then at Landlord’s option in
Landlord’s sole and absolute discretion, Tenant will be required to leave in
the Premises and convey to Landlord all such work stations toward the purchase
of which the Allowance or any portion thereof was applied. Landlord will make
such election at least 30 days before the natural expiration of the Revised
Term, or within 30 days after the earlier termination of the Lease. If Landlord
so elects, then this Amendment will constitute a bill of sale pursuant to which
Tenant conveys ownership of and good and marketable title to such work stations
effective as of the date of expiration of the Lease or, in the case of earlier
termination of the Lease, effective as of the date of Landlord’s election to
accept such title. Tenant represents and warrants to Landlord that effective as
the date of such conveyance, Tenant will have good and marketable title to such
work stations, and that such work stations will be transferred to Landlord free
of any liens and encumbrances. Except for the warranty of title set forth
above, Tenant’s conveyance of such work stations will be without as-is, with
Tenant hereby disclaiming all other warranties and representations, express or
implied, of any nature whatsoever, including but not limited to, any implied
warranties of merchantability, fitness for use, or fitness for a particular
purpose.

 

3.3                                 Funding and
Disbursement.  If the Cost of the Tenant
Work exceeds the Allowance, Tenant shall have sole responsibility for the
payment of such excess cost. Notwithstanding anything herein to the contrary,
Landlord may deduct from the Allowance any amounts due to Landlord or its
architects or engineers under the Lease or this Work Letter and as necessary to
satisfy any liens filed against the Complex or Premises solely as a result of
the Tenant Work, before disbursing any portion of the Allowance, to the extent
such amounts are then due under the terms of the Lease. Landlord shall pay out
the Allowance commencing on the date on which Landlord delivers possession of
the 1320 Premises, as the Tenant Work is completed in accordance with approved
Plans. Each such payment shall be in that proportion of the Tenant Work
represented thereby as the total Allowance bears to the budgeted total Cost of
the Tenant Work, as set forth in the Work Budget (as defined below), and Tenant
on a pari  passu basis shall at the same time
pay its proportionate share of the Cost of the Tenant Work.

 

B-3

 

	
   

  	
  /s/ DM

  

 

Provided that Tenant has submitted certification from Tenant’s architect
and contractor certifying that Tenant’s Work completed to date has been
performed substantially in conformance with the approved Plans, and such other
items as Landlord, its lender and its title insurer may reasonably require and
in form reasonably acceptable to Landlord’s lender and title insurer, Landlord
will fund the Allowance (and Tenant, to the extent the Cost of the Tenant Work
exceed the Improvement Allowance, will fund on a pari  passu basis
its share of such excess Cost of the Tenant Work) in installments, not more
frequently than monthly, based on applications for payment and releases of lien
rights, submitted by Tenant on forms reasonably acceptable to Landlord, its
lender and title insurer requesting progress payments, together with such lien
releases and affidavits of payments by Tenant’s general contractor and
subcontractors contemplated therein, and such other documentation as Landlord
may reasonably require to evidence that no mechanic’s, materialmen’s or other
such liens have been filed against the 1310-1314 Building or 1320 Building or
the 1310-1314 Premises or 1320 Premises arising out of the design or
performance of the Tenant Work. Such forms shall include AIA G702 and G703, and
as may otherwise be reasonably required by the construction lender and the
title insurer. Lien waivers from subcontractors may be submitted on a “30-day
delay” basis, so long as Tenant has provided to the title insurer such
undertakings and indemnities as the title insurer may require in order to
insure over all such liens attributable to work completed to date and
represented in such disbursement payment. Landlord (or the title insurer, if
Landlord’s lender requires that a construction escrow be utilized) shall issue
checks to fund the Allowance to the general contractor and subcontractors, jointly
or individually, as directed by Landlord. Tenant shall require the contractor’s
contracts to have a hard cost retainage of 10% of the Cost of the Tenant Work.
Landlord will fund the Allowance (and Tenant, to the extent the Cost of the
Tenant Work exceeds the Allowance, will fund on a pari  passu
basis its share of such excess Cost of the Tenant Work) in respect of such
retainage on a trade by trade basis within 30 days after substantial completion
of the Tenant Work, provided Tenant has submitted, in addition to the foregoing
requirements in respect thereof, final unconditional lien waivers, sworn
statements and affidavits of payment (except to the extent that Tenant has
supplied either an endorsement to Landlord’s (and its lender’s) policy insuring
against any lien claims not covered by final waivers or a bond protecting
Landlord and its lender against any such lien claims), and such other items as
Landlord, its lender and its title insurer may reasonably require and in form
acceptable to Landlord’s lender to evidence and assure that the Cost of the
Tenant Work completed to date has been paid for and that no mechanic’s,
materialmen’s or other such liens have been or may be filed against the
Property or the Premises arising out of the design or performance of Tenant’s
Work completed to date, except for lien claims so insured over or bonded
against.

 

3.4                                 Landlord’s Costs.  Tenant
will pay Landlord’s reasonable actual out-of-pocket costs for architectural and
engineering review of the Space Plan and the Plans, and all revisions thereof.
Tenant will pay for all utilities for the Tenant Work or otherwise consumed in
or for the Premises during the Tenant Work.

 

4.                                       Pre-Construction
Activities.  Before commencing construction of the
Tenant Work, Tenant shall provide and submit the following information and
items to Landlord for Landlord’s information and review prior to commencing the
Tenant Work:

 

a.                                       A detailed
critical path construction schedule containing the major components of the
Tenant Work and the time required for each, including the scheduled
commencement date of construction of the Tenant Work, milestone dates and the
estimated date of completion of construction. Tenant shall update and resubmit
its construction schedule from time to time as Landlord may reasonably require,
in a form reasonably acceptable to Landlord;

 

b.                                      A detailed
itemized statement of estimated construction cost (the “Work Budget”), including fees
for permits and architectural and engineering fees, including a cash
disbursement time-line in a form that is reasonably acceptable to Landlord;

 

c.                                       Certificates of
insurance as hereinafter described. Without limiting any other provision
herein, Tenant shall not permit Tenants contractors and subcontractors to
commence work until the required permits and insurance have been obtained and
certified copies of permits and certificates (as designated by Landlord) have
been delivered to Landlord; and

 

d.                                      Copies of the
building permit in respect of the Tenant Work.

 

Tenant will update such information and items by notice to Landlord of
any changes to the foregoing.

 

5.                                       COMMENCEMENT OF
LEASE; RENT. Any delay in the completion of the Tenant Work, and any failure

 

B-4

 

	
   

  	
  /s/ DM

  

 

of the Tenant Work to be completed by the 1320 Commencement Date will
have no effect on the 1320 Commencement Date or the Lease term and will not
serve to abate or extend the time for the commencement of rent under the Lease,
except to the extent of 1 day for each day that the Landlord delays approvals
required hereunder beyond the times permitted herein without good cause,
provided substantial completion of the Tenant Work and Tenant’s ability to
reasonably use the 1310-1314 Premises or 1320 Premises by the Commencement Date
(or by such later date when Tenant would otherwise have substantially completed
the Tenant Work) is actually delayed thereby. Tenant will notify Landlord upon
completion of the Tenant Work.

 

5.                                       MISCELLANEOUS.

 

A.                                   The Demised
Premises must be keyed to permit entry by the building master key.

 

B.                                     Except to the
extent otherwise indicated herein, the initially capitalized terms used in this
Work Letter will have the meanings assigned to them in the Amendment to which
this Work Letter is attached, or in the Lease.

 

C.                                     The terms and
provisions of this Work Letter are intended to supplement and are specifically subject
to all the terms and provisions of Amendment and the Lease.

 

D.                                    This Work Letter
may not be amended or modified other than by supplemental written agreement
executed by authorized representatives of the parties hereto.

 

E.                                      Any Space Plan
or other plans that may be attached to or referred to in this Work Letter are subject
to the approval of the applicable governmental authority, and will be subject
to such revisions as may be required by the applicable governmental authority.

 

F.                                      Landlord’s
preparation or review and approval of the Plans shall not create or imply any responsibility
or liability on the part of Landlord with regard to the completeness and design
sufficiency of both the Plans and the Tenant Work, or with regard to the
compliance of the Plans and the Work with all laws, rules and regulations
of governmental agencies.

 

B-5

 

	
   

  	
  /s/ DM

  

 

SCHEDULE 1

 

TO

 

EXHIBIT B

 

TENANT
CONTRACTOR RULES & REGULATIONS

 

ALL
CONTRACTORS

The Contractor shall be responsible to meet these performance
requirements throughout the course of the Work. Exceptions shall only be
allowed at the Owner’s discretion and with Owner’s prior written approval.

 

1.                         All building
permits necessary for the completion of the work shall be secured and paid for
by the Contractor with copies provided to the Office of the Building.

 

2.                         Contractors must
have its own supervisor on-site any time material is delivered or moved.

 

3.                         The Contractor
and all subcontractors will use rubber wheeled carts when moving material
through the building or removing trash from the building.

 

4.                         Protection of
all public corridor surfaces and elevator lobbies is the responsibility of the
Contractor. Masonite floor protection and cardboard wall protection will be
required throughout certain jobs.

 

5.                         Under no
circumstances will debris be allowed to remain in the building longer than
twenty-four (24) hours. The work areas should be kept clean and organized at
all times.

 

6.                         While on-site,
workers shall remain in areas of building related only to the area of their
work and common lobby area. Permission must be acquired in order to park on
building property.

 

7.                         Any worker
caught stealing, drinking alcohol, or using any illegal substance will be
immediately banned from the site. Objectionable, abusive, or unacceptable
personal behavior of contractor personnel is prohibited. Expected behavior is
to be professional at all times.

 

8.                         No cooking of
any kind will be allowed on the site.

 

9.                         No unauthorized
use of tenant or building space, restrooms, equipment, trash compactor,
dumpster, parking, storage, and utilities.

 

10.                   Noisy operations
will be done between 6:00 p.m. and 7:30 a.m. Monday through Friday
and will be approved and coordinated with Agent. Loud noises off site are
considered by Owner as objectionable.

 

11.                   Contractor is
responsible to fully comply with all local building codes and ordinances.

 

12.                   All HVAC
servicemen must provide proof of EPA Certification BEFORE working on any
refrigeration and air conditioning equipment. Also, the Contractor must use a
refrigerant recovery unit if the refrigeration system is opened.

 

13.                   The Contractor
is responsible for removal and capping of unused or abandoned conduit, cables,
ductwork or other materials.

 

14.                   Any work which
requires access to another tenant’s space e.g. plumbing etc. must be scheduled
with the Owner’s Agent and Contractor must give at least 72 hours written
notice of such request. The work will be done during premium time hours, most
likely on a Saturday or Sunday.

 

15.                   The Contractor
will notify the Owner’s Agent in writing one week before any electrical
shutdowns which might affect existing tenants.

 

1

 

	
   

  	
  /s/ DM

  

 

16.                   A list of contractors and
their subcontractors must be submitted to the Property Manager prior to the
commencement of work.

 

17.                   All Contractors and
subcontractors must have a current certificate of insurance on file with the
Office of the Building prior to any work commencing.

 

ADDITIONAL
RULES FOR CONSTRUCTION CONTRACTORS

 

18.                   Any work deviation from
permit plans approved by the Building’s Property Manager and the City must be
provided to the Property Manager for approval.

 

19.                   Contractor must have a City
of Sunnyvale building permit prior to the commencement of any work. The
original permit must be displayed at the site and a copy submitted to the
Office of the Building.

 

20.                   Building materials used will
be of the highest quality and will be of the same manufacturer as existing
materials. Any variance is to be pre-approved by the Managing Agent.

 

21.                   The Contractor will protect
smoke detection devices in the areas where production of dust will occur.

 

22.                   Before any demolition and/or
construction work may begin, it must be determined whether such work will
affect the fire alarm system. If it is determined that such demolition and/or
construction work may trigger the fire alarm system, it will be necessary for
the Contractor to notify the Building Engineer.

 

23.                   It shall be the
responsibility of the Contractor to isolate the heating, ventilating, and air
conditioning systems of the Work Site from the remainder of the building. Under
no circumstance shall the Contractor utilize materials such as but not limited
to: cleaning agents, paints, thinners, or adhesives that if released in the
Work Site atmosphere could spread to tenant areas, causing discomfort or posing
any type of health hazard.

 

24.                   In the event that any fire
and life safety system will need to be disabled to complete the Work, the
Contractor must notify the Owner in advance of such event in writing.

 

25.                   In the event any soldering or
welding apparatus is required to complete the Work, the Contractor must notify
the Owner of such event.

 

26.                   Contractor must properly
dispose wastes, residues, or debris.

 

2

 

	
   

  	
  /s/ DM

  

 

Attachment 1 to Exhibit B

 

Space Plan

 

[attach Space Plan, if
available]

 

1

 

	
   

  	
  /s/ DM

  

 

Exhibit C

 

Commencement Date Agreement

 

It is hereby agreed among the parties to that certain             Amendment
to Lease, dated              ,
200  , relating to the           ,
in the building commonly known as                        ,
located at                 ,                 (the
“Lease”) between [name of Tenant] (“Tenant”),
and                   (“Landlord”)
that:

 

The 1310-1314 Effective Date under the Sixth Amendment to Lease is:                            .

 

The 1315 Expiration Date under the Sixth Amendment to Lease is:                            .

 

The 1310-1314 Base Rent Commencement Date under the Sixth Amendment to
Lease is:                             .

 

The 1320 Commencement Date under the Sixth Amendment to Lease is:                            .

 

IN WITNESS WHEREOF, Landlord and Tenant have executed this Statement as
of the date hereof.

 

 

	
   

  	
  Tenant:
  ACCURAY INCORPORATED, a 

  Delaware corporation

  	
   

  	
  LANDLORD:
  I & G CARIBBEAN, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
  (Chairman
  of Board, President or Vice 

  	
   

  	
   

  	
   

  
	
   

  	
  President)

  	
   

  	
  Title:

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Secretary,
  Assistant Secretary, CFO or 

  Assistant Treasurer)

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  	
   

  	
   

  

 

C-1

 

	
   

  	
  /s/ DM

  

 

Exhibit D

 

Fair Market Rent; Fair Market
Allowance; Dispute Resolution

 

For purposes of this Amendment, “Fair
Market Rent” means a rate comprised of (i) the prevailing base
rental rate per square foot of rentable space of office space available in the
Pertinent Market (defined below) for renewals or expansions, as the case may
be, and (ii) any financial escalation of such prevailing base rental rate
(based upon a fixed step or index) for warehouse/distribution/office space
prevailing in the Pertinent Market for renewals or expansions, as the case may
be, taking into account comparable renewals or expansions, as applicable (on
the basis of factors such as, but not limited to, size and location of space
and commencement date and term of lease), recently executed for improved space
in warehouse/distribution/office buildings in Sunnyvale, California that are
comparable to the 1310-1314 Building and 1320 Building in reputation, quality,
size, location and level and quality of services provided, and which have
similar levels of occupancy as the 1314 Building and 1320 Building (the
foregoing factors not being exclusive in identifying comparable buildings) (the
1314 Building and 1320 Building and such comparable buildings, as the case may
be, being herein referred to as the “Pertinent
Market”). For
purposes of this Lease, “Fair Market
Allowance” means the prevailing leasehold improvement allowance (on
a per rentable square foot basis) available in the Pertinent Market for
renewals or expansions, as the case may be, of office space, taking into
account comparable lease renewals or expansions, as applicable (on the basis of
factors such as, but not limited to, size and location of space and
commencement date and term of lease), and the rental rate. In determining the
Fair Market Rent and Fair Market Allowance, there will also be taken into
consideration (a) the definition of rentable area or net rentable area
with respect to which such rental rates are computed; (b) whether the
lease comparable is a net or gross lease and, if gross, differences in base
year or stop; (c) the value of rental abatements, moving allowances,
allowances for construction of tenant improvements, time permitted to tenants
in which to construct tenant improvements and other financial or economic
concessions generally available in the Pertinent Market at such time to tenants
leasing comparable space which are not being made available to Tenant in kind; (d) the
size of the tenant; and (e) other comparable pertinent factors. Taking
into account Tenant’s creditworthiness, Landlord may require a security deposit
or an increase in any existing security deposit before disbursing any such
allowance. Notwithstanding anything to the contrary contained in this Exhibit,
if a lease renewal or expansion that is to be used as a comparable in
calculating Fair Market Rent was prepared based on an option calling for the
base rental to be at less than 100% of “market,” then such rental rate will be
grossed back up to 100% in calculating Fair Market Rent hereunder.

 

If, in accordance with this Amendment, Tenant disputes Landlord’s
determination of Fair Market Rent or Fair Market Allowance or both, or if
Tenant fails to deliver Tenant’s Renewal Inquiry Notice on a timely basis, then
Landlord and Tenant will negotiate for 30 days after Landlord’s receipt of
Tenant’s Renewal Exercise Notice or Tenant’s ROFO Notice, as the case may be.
If Landlord and Tenant do not come to an agreement on the amount or amounts at
issue within such 30-day period, then Landlord and Tenant will exchange sealed
bids of their respective final determinations of Fair Market Rent and Fair
Market Allowance. If the lower of the two determinations of Fair Market Rent is
no less than 95% of the higher of the two determinations of Fair Market Rent,
and if Fair Market Allowance is not in dispute or such dispute is resolved by
averaging the two parties’ positions as set forth below in this grammatical
paragraph, then the Fair Market Rent will be the average of the two
determinations, and otherwise the parties will proceed to arbitration as set
forth below. If the lower of the two determinations of Fair Market Allowance is
no less than 95% of the higher of the two determinations of Fair Market
Allowance, and if Fair Market Rent is not in dispute or such dispute is
resolved by averaging the two parties’ positions as set forth above in this
grammatical paragraph, then the Fair Market Allowance will be the average of
the two determinations, and otherwise the parties will proceed to arbitration
as set forth below.

 

Arbitration to determine the Fair Market Rent and Fair Market Allowance
shall be in accordance with the Real Estate Valuation Arbitration Rules of
the American Arbitration Association. Unless otherwise required by state law,
arbitration shall be conducted in the metropolitan area where the Building is
located by a single arbitrator unaffiliated with either party. Within 20 days
after the exchange of determinations by Landlord and Tenant, the parties will
appoint a single arbitrator to decide the issues between them. Such arbitrator
must be a competent and impartial person, must be a full member and SIOR
designated Industrial and Office Specialist (or then comparable designation) of
the Society of Industrial and Office Realtors (or its successor organization),
or a Principal Member (or then comparable designation) of the National
Association of Industrial and Office Properties (or its successor

 

D-1

 

	
   

  	
  /s/ DM

  

 

organization), in either case currently certified under such
organization’s continuing education program (if any), and having at least 10
years’ experience in leasing (on behalf of both landlords and tenants)
industrial and office properties in the Pertinent Market. If the parties are
unable to agree upon appointment of such a person within such 20-day period,
then either party, on behalf of both, may request a list of qualified
arbitrators from the American Arbitration Association (or such other
arbitration organization as the parties may approve in writing). In such event,
the parties, beginning with Tenant, will alternate striking one name from such
list until one name remains, in which event such remaining name will be the
arbitrator. The arbitrator shall decide the dispute if it has not previously
been resolved by following the procedure set forth below and will attempt to
render a decision within 15 business days after appointment. In any case, the
arbitrator will render its decision within 45 days after appointment. In the
event that arbitrators with the qualifications described in this paragraph are
unavailable, qualified consultants with similar qualifications may be
substituted.

 

If either Fair Market Rent or Fair Market Allowance are in dispute and
are to be decided by arbitration, then both will be decided by arbitration
unless the parties otherwise agree in writing. The arbitrator must choose
either the Landlord’s proposal for both Fair Market Rent and Fair Market
Allowance, or the Tenant’s proposal for both Fair Market Rent and Fair Market
Allowance (as set forth in the sealed bids exchanged prior to the appointment
of the arbitrator, in accordance with the foregoing provisions) and may not
compromise between the two or select some other amount or select one of
Landlord’s determinations and one of Tenant’s determinations. The cost of the
arbitration shall be paid by Landlord if the decision by the arbitrator is that
proposed by Tenant and by Tenant if the decision by the arbitrator is that
proposed by Landlord. The attorneys’ fees and expenses of counsel for the
respective parties and of witnesses will be paid by the respective party
engaging such counsel or calling such witnesses.

 

The parties consent to the jurisdiction of any appropriate court to
enforce the arbitration provisions of this addendum and to enter judgment upon
the decision of the arbitrator. Notice of the appointment of the arbitrator
shall be given in all instances to any mortgagee who prior thereto shall have
given Tenant a written notice specifying its name and address. Such mortgagee
shall have the right to be represented, but not to participate, in the
arbitration proceeding.

 

If Tenant becomes obligated to pay Base Rent, or adjustments thereto, if
any, with respect to any period prior to when the Fair Market Rent for such
space or period has been determined in accordance with the foregoing, Tenant
will commence paying Base Rent and adjustments thereto, if any, utilizing the
Fair Market Rent specified by Landlord in its notice of the Fair Market Rent
for such space or period. Following determination of the Fair Market Rent in
accordance with the foregoing, Landlord and Tenant shall, by a cash payment
within thirty (30) days after the date of such determination, adjust between
themselves the difference, if any, between the Base Rent and adjustments
thereto, if any, paid by Tenant pursuant to the foregoing sentence and the Base
Rent and adjustments thereto, if any, actually owed by Tenant pursuant to the
terms of this lease for the period prior to such determination.

 

D-2

 

	
   

  	
  /s/ DM

  

 

Exhibit E

 

1320 Building Sign Criteria

 

1.                                       The maximum
dimensions of the 1320 Building Sign will be as follows: the dimensions of
Tenant’s exterior sign on the 1310-1314 Building as of the date of this
Amendment.

 

2.                                       The color(s) of
the 1320 Building Sign must not clash with and must be harmonious with the 1320
Building color scheme, in Landlord’s judgment.

 

3.                                       The design of
the 1320 Building Sign must be consistent with the class and nature of the Building,
in Landlord’s judgment.

 

4.                                       The method of
illuminating the 1320 Building Sign must not be neon lights and such
illumination must not flash.

 

5.                                       The 1320
Building Sign must be located in a location designated by Landlord and
reasonably approved by Tenant.

 

6.                                       The 1320
Building Sign must be made of materials consistent with the class and nature of
the Building, in Landlord’s judgment.

 

7.                                       The 1320
Building Sign may indicate only the Tenant’s name.

 

8.                                       The method of
installing the 1320 Building Sign is subject to Landlord’s prior written
approval.

 

9.                                       Before
installing the 1320 Building Sign, Tenant must prepare and deliver to Landlord
the following, which will be subject to Landlord’s approval:

 

Preliminary drawings of the 1320 Building Sign;

 

Shop drawings that show the size of all lettering and background panels,
as well as the location of the 1320 Building Sign on the Building;

 

A list of all colors,
materials, and finishes that will be used; and 

 

Samples of any sign material,
if Landlord so requests. 

 

Incomplete drawings will be returned to Tenant without approval.

 

10.                                 Tenant will be
responsible, at its sole cost and expense, for obtaining and maintaining during
the Lease Term all applications, permits, consents, approvals and licenses
required by federal, state and local governmental and quasi-governmental
authorities, and by any applicable property association to which the Building
may be subject, in connection with the 1320 Building Sign. Landlord will
cooperate with Tenant in obtaining such approvals, but Tenant will reimburse
Landlord for Landlord’s out-of-pocket costs in connection therewith. Copies of
all permits and licenses must be delivered to Landlord promptly after Tenant’s
receipt thereof. Tenant’s inability or failure to obtain any such permits,
approvals or licenses, or the expiration or cancellation of the same, and the
resulting inability of Tenant to install or maintain the 1320 Building Sign,
will not invalidate this Lease or reduce Tenant’s obligations under the Lease
or this Amendment.

 

11.                                 If illuminated,
Tenant will replace any bulbs in the 1320 Building Sign as soon as such bulb(s) stop
working or materially lose intensity.

 

12.                                 If illuminated,
Tenant will bear the costs of illuminating the 1320 Building Sign and all costs
of operating and maintaining such illumination (including, without limitation,
bulbs and ballasts). If any such illumination costs are

 

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invoiced
to Landlord, such costs will become additional rent and will be due promptly
upon invoice therefor from Landlord.

 

E-2

 

	
   

  	
  /s/ DM

  

 

Exhibit F

 

Tenant Estoppel Certificate

 

E-1

 

	
   

  	
  /s/ DM

  

 

Tenant Estoppel Certificate

 

To:                              Bank of
America, N.A.

135 South LaSalle Street 

12th Floor

Chicago, Illinois 60603 

Attention:    Josh
Grill

 

Re:                               A certain
Industrial Complex Lease, dated as of July 9, 2003 (the “Original Lease”),
between a predecessor in title to I & G Caribbean, Inc., a
Delaware corporation (“Landlord”) and the undersigned, as Tenant, as amended
and supplemented by the following: First Amendment to Industrial Complex Lease,
dated as of December 9, 2004 (the “First Amendment”);  Second
Amendment to Industrial Complex Lease, dated as of September 25, 2006 (the
“Second Amendment”);  Third Amendment to Industrial
Complex Lease, dated as of January 16, 2007 (the “Third Amendment”);  Fourth Amendment to Industrial
Complex Lease, dated as of September 18, 2007 (the “Fourth Amendment”);  Fifth Amendment to Industrial
Complex Lease, dated as of April 1, 2008 (the “Fifth Amendment”);  and
Sixth Amendment to Industrial Complex Lease, dated as of December 18, 2009
(the “Sixth Amendment”) (the Original
Lease, as so amended and modified, is referred to herein as the “Lease”),  pursuant to which the undersigned,
as Tenant, leases from Landlord: (i) approximately 125,568 rentable square
feet (the “Existing
Premises”)  described as 40,000 rentable square
feet of space (the “Existing
1310 Premises”) in that certain building located at 1310 Chesapeake Terrace,
Sunnyvale, California, and 32,576 rentable square feet of space (the “Existing 1314 Premises”)  in that certain building located at
1314 Chesapeake Terrace, Sunnyvale, California (the building located at 1310
Chesapeake Terrace, Sunnyvale, California, and the building located at 1314
Chesapeake Terrace, Sunnyvale, California, are referred to collectively as the “1310-1314 Building”),  and approximately 52,992 rentable
square feet of space (the “1315
Premises”)  in that certain building located at
1315 Chesapeake Terrace, Sunnyvale, California (the “1315 Building”);  and
(ii) approximately 37,765 rentable square feet (the “1320 Premises”) in
that certain building located at 1320 Chesapeake Terrace, Sunnyvale, California
(the “1320  Building”);  the
1310-1314 Building, the 1315 Building, and the 1320 Building are referred to
herein individually as a “Building”
and collectively as the “Buildings”).

 

1.                                       The
undersigned, as Tenant under the Lease, hereby certifies as follows:

 

(a)                                  That attached
hereto as Exhibit “A” is a true, correct and complete copy of the
Lease, together with all amendments thereto;

 

(b)                                 That the Lease
is in full force and effect and has not been modified, supplemented or amended
in any way except as set forth in Exhibit “A.” The interest of the
undersigned in the Lease has not been assigned or encumbered;

 

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(c)                                  That the Lease,
as amended as indicated in Exhibit “A,” represents the
entire agreement between the parties as to said leasing, and that there are no
other agreements, written or oral, which affect the occupancy of the Premises
by the undersigned;

 

(d)                                 That all
insurance required of the undersigned under the Lease has been provided by the
undersigned and all premiums have been paid;

 

(e)                                  That the
commencement date of the term of the Lease as to the Existing Premises was as
follows: (i) Existing 1310 Premises: July 9, 2003; (ii) Existing
1314 Premises: January 1, 2005; and (iii) 1315 Premises: November 15,
1995. The commencement date of the term of the Lease as to the 1320 Premises
has not yet occurred but is anticipated to occur on the 120th day after the date on which Landlord delivers
to Tenant possession of the 1320 Premises, but in no event will such 120-day
period begin before June 1, 2010;

 

(f)                                    That the
expiration date of the term of the Lease is as follows, including any presently
exercised option or renewal term: (i) 1310-1314 Premises: the last day of
the period of 66 months commencing on the 1310-1314 Effective Date, which
1310-1314 Effective Date has not yet occurred but is anticipated to be either December 1,
2009 or January 1, 2010; (ii) 1315 Premises: the later of September 30,
2010 and the day immediately preceding the 1320 Commencement Date; and (iii) 1320
Premises: the last day of the period of 66 months commencing on the 1310-1314
Effective Date;

 

(g)                                 That the
undersigned has no rights to renew, extend or cancel the Lease or to lease
additional space in the Premises or the Building, except as expressly set forth
in the Lease;

 

(h)                                 That in
addition to the Premises, the undersigned has the right to use or rent 3.5
parking spaces per 1,000 rentable square feet in the Premises, in or near the
Buildings during the term of the Lease;

 

(i)                                     That the
undersigned has no option or preferential right to purchase all or any part of
the Premises (or the land or Building of which the Premises are a part), and
has no right or interest with respect to the Premises or the Building other
than as Tenant under the Lease;

 

(j)                                     That all
conditions of the Lease to be performed by Landlord and necessary to the
enforceability of the Lease have been satisfied. On this date there are no
existing defenses, offsets, claims or credits which the undersigned has against
the enforcement of the Lease except for prepaid rent through [December 31,
2009][January 31, 2010][STRIKE ONE] (not to exceed
one month);

 

(k)                                  That all
contributions required by the Lease to be paid by Landlord to date for
improvements to the Premises have been paid in full except for the following,
which are not yet due and payable: (i) Landlord is to construct a new
covered walkway bridge between and connecting the 1310-1314 Building to the
1320 Building, which covered walkway bridge is to allow access between such
buildings on both floors, and is to provide an unenclosed covering over a
ground floor walkway between such buildings; (ii) Landlord is to deliver
possession of the 1320 Premises in the following condition: central building
systems in good working condition, including the roof in watertight condition,
mechanical, electrical, plumbing and roll up doors in good working condition
and operable as of the date of delivery of possession; and (iii) an

 

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allowance in the amount of $1,324,092 ($12 x 110,341 rsf). Except as
set forth above, all improvements or work required under the Lease to be made
by Landlord to date, if any, have been completed to the satisfaction of the
undersigned. Except as set forth above, charges for all labor and materials
used or furnished in connection with improvements and/or alterations made for
the account of the undersigned in the Building have been paid in full. The
undersigned has accepted the Existing Premises, subject to no conditions other
than those set forth in the Lease. Possession of the 1320 Premises has not been
delivered yet, nor is such delivery yet due. The undersigned has entered into
occupancy of the Existing Premises but not the 1320 Premises;

 

(l)                                     That the annual
minimum rent currently payable under the Lease for the Existing Premises only
is as follows: (1) November 2009 (already paid): $265,824 (i.e.,
$199,584 for 1310-1314 Premises, plus $66,240 for 1315 Premises; (2) December 2009:
$66,240 (i.e., $0 for 1310-1314 Premises, plus $66,240 for 1315 Premises)
(already paid but subject to partial rebate as set forth in clause 1(o) below);
and (3) January 2010: $66,240 (i.e., $0 for 1310-1314 Premises, plus
$66,240 for 1315 Premises); and such rent has been paid through December 31,
2009 subject to partial rebate as set forth in clause 1(o) below; annual
minimum rent for the 1320 Premises has not yet commenced;

 

(m)                               That the annual
percentage rent currently payable under the Lease is at the rate of $0 and such
rent has been paid through  not
applicable  ;

 

(n)                                 That additional
rent is payable under the Lease for (i) operating, maintenance or repair
expenses, and (ii) property taxes. There is no base year or “stop” for operating,
maintenance or repair expenses, or for real estate taxes; there is no
additional rent payable under the Lease for percentage rent or for consumer
price index costs of living adjustments;

 

(o)                                 That the
undersigned has made no agreement with Landlord or any agent, representative or
employee of Landlord concerning free rent, partial rent, rebate of rental
payments or any other similar rent concession which has not already been fully
applied, paid, or made except (i) as expressly set forth in the Sixth
Amendment, a copy of which is attached hereto; and (ii) based on Tenant’s
execution and delivery of the Sixth Amendment by December 23, 2009 and the
provisions of Section 2(a) of the Sixth Amendment (which causes the
1310-1314 Effective Date (as defined therein) to be backdated to December 1,
2009 if Tenant executes and delivers the Sixth Amendment by December 23,
2009), Tenant will be deemed to have overpaid Minimum Guaranteed Rent on the
1310-1314 Premises for December 2009 and will be entitled to a refund
thereof. No rents have been prepaid more than one (1) month in advance and
full rental, including basic minimum rent, if any, has commenced to accrue on
the Existing Premises but has not yet commenced on the 1320 Premises;

 

(p)                                 That there are
no defaults by the undersigned or Landlord under the Lease, and no event has
occurred or situation exists that would, with the passage of time, constitute a
default under the Lease;

 

(q)                                 That the
undersigned has paid to Landlord a security deposit in the amount of $24,432 (1st Amendment) plus $68,889.60 (2nd Amendment), and has
delivered to Landlord a standby letter of credit in the amount of $300,000;

 

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(r)                                    That the
undersigned has all governmental permits, licenses and consents required for
the activities and operations being conducted or to be conducted by it in or
around the Building; and

 

(s)                                  That as of this
date there are no actions, whether voluntary or otherwise, pending against the
undersigned or any guarantor of the Lease under the bankruptcy or insolvency
laws of the United States or any state thereof.

 

2.                                       The undersigned
represents and warrants that it has not used, generated, released, discharged,
stored or disposed of any Hazardous Material on, under, in or about the
Building or the land on which the Building is located, other than in the
ordinary and commercially reasonable course of the business of the undersigned
in compliance with all applicable laws. Except for any such legal and
commercially reasonable use by the undersigned, the undersigned has no actual
knowledge that any Hazardous Material is present or has been used, generated,
released, discharged, stored or disposed of by any party, on, under, in or
about such Building or land. As used herein, “Hazardous Material” means any
substance, material or waste (including petroleum and petroleum products) which
is designated, classified or regulated as being “toxic” or “hazardous” or a
“pollutant” or which is similarly designated, classified or regulated under any
federal, state or local law or ordinance.

 

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left blank]

 

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3.                                       The undersigned
acknowledges the right of Lender to rely upon the certifications and agreements
in this Certificate in making a loan to Landlord. The undersigned hereby agrees
to furnish Lender with such other and further estoppel certificates as Lender
may reasonably request. The undersigned understands that in connection with
such loan, Landlord’s interest in the rentals due under the Lease will be
assigned to Lender pursuant to an assignment of leases by Landlord in favor of
Lender. The undersigned agrees that if Lender shall notify the undersigned that
a default has occurred under the documents evidencing such loan and shall
demand that the undersigned pay rentals and other amounts due under the Lease
to Lender, the undersigned will honor such demand notwithstanding any contrary
instructions from Landlord.

 

EXECUTED this 21st, day of December, 2009.

 

 

	
   

  	
  Accuray
  Incorporated

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Darren J. Milliken

  
	
   

  	
  Name:

  	
  Darren J. Milliken

  
	
   

  	
  Title:

  	
  Corporate Secretary

  Accuray Incorporated

  

 

5Exhibit 10.1

 

Janus
Capital Group Inc.

 

SEVERANCE
RIGHTS AGREEMENT

 

THIS SEVERANCE RIGHTS AGREEMENT (this “Agreement”)
is made this 1st day of February, 2010 (“Effective Date”) by and between Janus
Capital Group Inc., a Delaware corporation (the “Company”), and Richard
M. Weil (the “Executive”).

 

WHEREAS, in partial consideration for the
continued employment of the Executive with the Company and the severance
benefits hereunder, the Company wishes to enter into this Agreement with the
Executive upon the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the
mutual covenants and representations contained herein, the parties hereto agree
as follows:

 

1.                                      Term of Agreement.

 

The term of this Agreement shall commence on
the Effective Date and will expire as of the close of business on February 1,
2015.

 

2.                                      Definitions.

 

Capitalized terms not otherwise defined in this
Agreement shall have the meanings attributed to such terms in this Section 2.

 

(a)           “Affiliate” shall mean, with respect to any
individual or entity, any other individual or entity which, directly or
indirectly, controls, is controlled by or is under common control with such
individual or entity.

 

(b)           “Base Salary” shall mean the Executive’s annual
base compensation rate for services paid by the Company to the Executive at the
time immediately prior to the Executive’s termination of employment, as
reflected in the Company’s payroll records. 
Base Salary shall not include commissions, bonuses, overtime pay,
incentive compensation, benefits paid under any qualified plan, any group
medical, dental or other welfare benefit plan, non-cash compensation or any
other additional compensation, but shall include amounts reduced pursuant to
the Executive’s salary reduction agreement under Section 125, 132(f)(4) or
401(k) of the Code, if any, or a nonqualified elective deferred
compensation arrangement, if any, to the extent that in each such case the
reduction is to Base Salary.

 

(c)           “Cause” shall mean: (i) the Executive’s
continued failure to substantially perform his duties to the extent consistent with his
position as CEO of a publicly traded company that has not been cured within
fifteen (15) days after a written demand for substantial performance is
delivered to the Executive by the Board of Directors of the Company (the “Board”),
which demand specifically identifies the manner in which the Board believes
that the Executive has not substantially performed the Executive’s duties; (ii) any
act of fraud, dishonesty, or other willful misconduct by the Executive that is
materially injurious to the Company, monetarily or otherwise; (iii) the
Executive’s significant failure to comply with 

 

 

relevant regulations; (iv) the Executive’s
failure to comply with corporate policies or procedures of the Company or its
subsidiaries, as documented, after written notice of such failure and fifteen
(15) days within which to cure such failure, if that failure to comply is
materially injurious to the Company, monetarily or otherwise; or (v) the
Executive’s conviction of, or plea of guilty or nolo  contendere
to, a felony.

 

(d)           “Code” shall mean the United States Internal
Revenue Code of 1986, as amended from time to time.

 

(e)           “Disability” shall have the meaning set forth in Section 409A
of the Code.

 

(f)            “Good Reason” shall mean the occurrence (without
the Executive’s express written consent) of any one of the following: (i) a
reduction in the Executive’s total target compensation as in effect from time
to time (other than an inconsequential or insignificant reduction in such total
target compensation, but not including any reduction related to a general
compensation reduction applicable to other senior executive members of the
Company’s management ), (ii) a material negative adverse change in the
Executive’s duties or responsibilities with the Company (other than: (a) any
such alteration primarily attributable to the acquisition by any person of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Securities
Exchange Act of 1934) of 20% or more of the then outstanding shares of common
stock of the Company or 20% or more of the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors, which constitutes a “change in control” for purposes of
the Executive’s separate Change in Control Agreement; or (b) temporarily
while the Executive is physically or mentally incapacitated), or (iii) the
relocation of the Executive’s principal place of business beyond forty (40)
miles from Denver.  As a condition to the
Executive’s right to terminate the Executive’s employment with the Company for “Good
Reason,” (i) the Executive must give the Company written notice, setting
forth with reasonable specificity the events alleged to constitute “Good Reason”
hereunder, within sixty (60) calendar days following the date upon which the
Executive has knowledge of such events, (ii) the Company must fail to cure
such events, if such events are susceptible to cure, within fifteen (15)
calendar days following receipt of such written notice from the Executive, and (iii) the Executive must actually terminate
employment within fifteen (15) days following the expiration of the Company’s
fifteen (15) day cure period described above. 
If the Executive does not timely do so, the right to terminate for Good
Reason shall lapse and be deemed waived, and the Executive shall not thereafter
have the right to terminate for Good Reason on account of the circumstance
giving rise to such notice, in which case the provisions of this paragraph
shall once again apply, but in which case no consideration shall be given to
the other, prior circumstance that precipitated a notice by Executive of a
purported right to terminate for Good Reason.

 

3.                                      At-Will Employment.

 

The
Executive acknowledges and agrees that the Executive’s employment with the
Company is and shall remain “at-will” and the Executive’s employment with the
Company may be terminated at any time and for any reason (or no reason) by the
Company or the Executive, with or without notice.  During the period of the Executive’s
employment with the Company, the Executive shall only report to the Board and
perform such duties and fulfill such responsibilities 

 

2

 

as reasonably
requested by the Company from time to time commensurate with the Executive’s
position with the Company as the CEO to the extent consistent with the role of
a CEO of a company of similar size and nature to the Company.

 

4.                                      Severance.

 

(a)           Severance
Payments.  Subject to the conditions set forth in
Sections 4(f) and 14 hereof, in the event of a termination of the
Executive’s employment (i) by the Company other than for Cause, or (ii) by
the Executive for Good Reason, the Executive shall be entitled to receive a
lump sum cash payment of $5,000,000. 
Such payment will be made within 30 days following
the date the Company receives a release as described in Section 4(f) below.  Any severance payments hereunder
shall be in lieu of any other severance payments to which the Executive would
be entitled pursuant to any other severance plans, programs, arrangements, or
policies of the Company, and shall be considered a part of, and not in addition
to, any amounts that may be payable to the Executive under the Worker
Adjustment Retraining Notification Act of 1988 or any similar state statute or
regulation.

 

(b)           COBRA Coverage.  Upon the Executive’s termination of
employment with the Company (i) by the Company other than for Cause or (ii) by the
Executive for Good Reason, the Executive shall be entitled to elect to
receive continued medical, dental and vision coverage for the applicable
statutory period under the Consolidated Omnibus Budget Reconciliation Act of
1985 (COBRA), as amended, for the benefit of the Executive and the Executive’s
eligible dependents.  The benefits
otherwise receivable under this Section 4(b) will be eliminated or
reduced to the extent benefits of the same or similar type are received by or
made available to Executive during the applicable statutory period following
Executive’s date of termination of employment, and Executive undertakes to
promptly report to the Company the receipt of such benefits.  The amount of the benefits provided pursuant to this Section 4(b) during
any calendar year may not affect benefits provided in any other calendar year.  If the Executive timely elects to participate
in the COBRA program and subject to the condition set forth in Sections 4(f) and 14 hereof,
the Company will pay the full cost of the premiums for such continued
medical, dental and vision coverage directly to the COBRA insurance carrier(s) for
the period of twelve (12) calendar months following Executive’s date of
termination.

 

(c)           Long-Term
Incentive (“LTI”) Awards.  Upon the
Executive’s termination of employment (i) by the Company other than for
Cause (ii) by the Executive for Good Reason or (iii) due to death or
Disability, any unvested LTI awards granted to the Executive, including without
limitation, unvested shares of Company restricted stock, unvested options to
purchase Company stock (“stock options”) and unvested mutual fund unit awards
held by the Executive at the time of termination of employment shall
immediately vest; provided however, that if any such LTI award is
subject to performance-based vesting criteria, it shall only vest and be
payable if, and at such time that, the performance criteria are satisfied and
certified by the Company’s Compensation Committee, unless the termination was
due to death or Disability (so that no such certification is needed).  Subject to Section 14, the Company shall
pay and transfer to Executive in full all such LTI awards, each of which shall
remain governed by the applicable award agreement and the LTI compensation
plan, if any under which any such award is granted; provided, however, that all
stock options shall remain exercisable for the remainder of each stock option
award’s original term.

 

3

 

(d)           Payment
of Cash Bonus.  In the event of a termination of the Executive’s
employment (i) by the Company other than for Cause, (ii) by the
Executive for Good Reason or (iii) due to death or Disability, after the
end of a calendar year but prior to the payment in due course of the cash
portion of any bonus earned by the Executive for such prior calendar year, the
total amount of such earned but unpaid cash bonus for the Executive’s
last full calendar year of employment before the date of termination shall be
paid to Executive within thirty (30) days following the date the Company
receives a release as described in Section 4(f) below; provided however, that if any such cash bonus is subject
to performance-based criteria, it shall only be payable if the performance
criteria are satisfied and certified by the Company’s Compensation Committee,
unless the termination was due to death or Disability (so that no such
certification is needed).

 

(e)           Death
or Disability.  Subject to the
condition set forth in Section 14 hereof, if Executive’s employment is
terminated by reason of Executive’s death or Disability (and, in the case of
the Executive’s Disability, provided that the Executive complies with the
then-current long-term disability policy of the Company), the Company will pay
to Executive or Executive’s estate or beneficiaries (as applicable) a lump sum
cash payment of $5,000,000, with such payment to be made within thirty (30)
days of the date of termination.

 

(f)            General Release.  The receipt of the payments described in
Sections 4(a), 4(b), 4(c) and 4(d) hereof shall be conditioned upon
the execution and non-revocation by the Executive and the Company of a general
release of all claims in such form as attached as Exhibit A.  Such release shall be executed and delivered by
Executive and the Company (and no longer subject to revocation, if applicable)
within forty-five (45) days following the date of termination.

 

(g)           Other
Terminations of Employment.  In the
event that the Executive’s employment with the Company is terminated for any
reason (or no reason), the Company shall pay the Executive (or the Executive’s  legal representative) any earned but unpaid Base Salary and
any unreimbursed expenses through the Executive’s final date of employment with
the Company.  In the event that the
Executive’s employment with the Company is terminated by the Company for Cause
or by the Executive other than for Good Reason, death or Disability, the
Company shall have no further obligations to the Executive, except as provided
in Section 4(h) hereof and this Section 4(g).

 

(h)           Other
Benefits.

 

(i)            The benefits payable to the
Executive under this Agreement are not in lieu of any benefits payable under
any employee benefit plan, program or arrangement of the Company, except as
provided specifically herein, and upon termination of employment, the Executive
shall receive such benefits or payments, if any, as the Executive  may be entitled to receive pursuant to the terms of such
plans, programs and arrangements.

 

(ii)           This Agreement will not affect the
Executive’s rights of indemnification and defense or his access to directors
and officers insurance coverage pursuant to the Company’s Certificate of
Incorporation or its By-Laws, the laws of the State of Delaware and relevant
insurance contracts entered into by the Company and its Affiliates.

 

4

 

(iii)          For avoidance of doubt, the parties
hereto agree that if the Executive is entitled to any severance payments under
any change in control agreement entered into between the Executive and the
Company or any of its Affiliates, the Executive shall not be entitled to any
severance and/or welfare benefits under this Agreement and such change in
control agreement will govern.

 

(iv)          Except for the obligations of the
Company provided by this Agreement and any other plans, programs or agreements
referred to herein(including, without limitation, pursuant to this section
4(h)), the Company shall have no further obligations to the Executive upon  termination of employment.

 

(i)            Notice
of Termination.  Any purported
termination of the Executive’s employment (other than by reason of death) shall
be communicated by written Notice of Termination from one party hereto to the
other party hereto in accordance with Section 7 hereof.  For purposes of this Agreement, a “Notice of
Termination” shall mean a notice which shall indicate the specific termination
provision in this Agreement relied upon and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination
of the Executive’s employment under the provision so indicated.  Further, a Notice of Termination for Cause is
required to include a copy of a resolution duly adopted by the affirmative vote
of not less than three-quarters (3/4) of the entire membership of the Board at
a meeting of the Board which was called and held for the purpose of considering
such termination (after reasonable notice to the Executive and an opportunity
for the Executive, together with the Executive’s counsel, to be heard before
the Board) finding that, in the good faith opinion of the Board, the Executive
was guilty of conduct set forth in clause (i), (ii) or (iii) of the
definition of Cause herein, and specifying the particulars thereof in detail

 

(j)            No
Accumulation of Benefits. Executive’s right to severance payments and/or
welfare benefits under any subsection of this Agreement shall be paid with
respect to a single type of termination event, and such payments and benefits
from one termination event cannot be cumulated with rights arising under this
Agreement on account of another termination event.  Accordingly, the parties agree that if more
than one type of termination event giving rise to Executive’s right to
severance payments and/or welfare benefits could be deemed to occur from the
same set of circumstances, Executive shall only be entitled to severance
payments and/or welfare benefits for a single termination event under this
Agreement in connection with such circumstances.

 

(k)           Withholding
of Taxes.  All payments required to
be made by the Company to the Executive under this Agreement shall be subject
to the withholding of such amounts for taxes and other payroll deductions as
the Company may reasonably determine it should withhold pursuant to any
applicable law or regulation.

 

(l)            No
Mitigation.  The Executive shall
not be required to seek other employment or to reduce any payment or benefit
payable hereunder, and no such payment or benefit shall be reduced on account
of any compensation received by the Executive from other employment.

 

5

 

(m)          Resignation. 
Upon any termination of the Executive’s employment with the Company, the
Executive shall promptly resign, and shall be deemed to have automatically
resigned, from the Board and any other position as an officer, director or
fiduciary of the Company and any Company-related entity.

 

(n)           Claw
Back. Notwithstanding anything to the contrary contained in this Agreement,
if Executive is found by a court of competent jurisdiction (in a final judgment
that is either not appealed or is non-appealable) or by any relevant regulator
to have knowingly committed fraud against the Company or any of its Affiliates,
or if Executive is found to have actively participated in, knowingly concealed
or covered up, or knowingly failed to identify a material misstatement in the
Company’s financial statements, the Executive’s LTI awards  granted in the
three calendar years prior to such judgment, whether vested or unvested, shall be immediately
forfeited and cancelled, and Executive shall promptly return and repay to the
Company, in respect of any Company shares, stock options or mutual fund units
previously transferred to Executive pursuant to such LTI award agreements, an
amount equal to the lesser of (i) the fair market value of such shares, stock
options (based on the intrinsic value of such stock options) or mutual fund
units on the date of vesting and (ii) the fair market value of such
shares, stock options (based on the intrinsic value of such stock options) or
mutual fund units on the date on which such repayment obligation arises, in
each case, regardless of whether the Executive previously sold or otherwise
disposed of such shares.  Notwithstanding
this Section 4(m), however, under no circumstances shall the Company be
entitled to claw back any vested or unvested shares of Company restricted
stock, stock options or mutual fund unit awards granted to the Executive at the
outset of his employment by the Company solely as incentive to join the Company
(the “Sign-on Bonus”), if any, and any such awards granted prior to the three
calendar years prior to such judgment.

 

5.                                      Restrictive Covenants.

 

(a)           Proprietary Information.

 

(i)            The Executive agrees that all information and know-how,
whether or not in writing, of a private, secret or confidential nature
concerning the business or financial affairs of the Company or any of the
Company’s Affiliates is and shall be the exclusive property of the Company or
the Company’s Affiliates.  Such
information and know-how shall include, but not be limited to, trade secrets,
ideas, skills, knowledge, improvements, works of authorship, inventions
(whether or not patentable), products, processes, methods, techniques,
formulas, compositions, projects, developments, plans, research data, financial
data, personnel data, technical, business, financial, customer and product
development plans and forecasts, salaries and terms of compensation of
employees, computer programs, computer codes, algorithms, modules, scripts,
features, and modes of operation, designs, technology, internal documentation
and employee, customer and supplier lists, contacts at or knowledge of current
or prospective customers of the Company or the Company’s Affiliates or their
clients, and such other information concerning the Company or any of the Company’s
Affiliates (collectively, “Proprietary Information”).  Except in connection with, and on a basis
consistent with, the performance of the Executive’s duties hereunder, the
Executive shall not disclose any Proprietary Information to others outside the
Company or the Company’s Affiliates or use the same for any unauthorized
purposes without written approval by the Company, either during or 

 

6

 

after the Executive’s employment with the
Company.  The Executive understands that
the Executive’s employment creates a relationship of confidence and trust
between the Executive and the Company with respect to the Proprietary
Information.

 

(ii)           The Executive agrees that all files, letters, memoranda,
reports, records, data, sketches, drawings, laboratory notebooks, program
listings, computer software, computer discs, tapes, printouts, source, html and
other code, flowcharts, schematics, designs, photographs, charts and customer
lists, or other written, photographic, or other tangible material, whether
printed, typewritten, handwritten, electronically stored on disk, tapes, hard
drives or other storage media, containing or embodying Proprietary Information
or any other information concerning the business, operation or plans of the
Company or any of the Company’s Affiliates, whether created by the Executive or
others, which shall come into the Executive’s custody or possession
(collectively, “Company Materials”), shall be and are the exclusive
property of the Company or the Company’s Affiliates to be used by the Executive
only in the performance of the Executive’s duties for the Company.  The Executive understands that the Company
possesses or will possess Company Materials that are important to the Company,
the Company’s Affiliates and the customers and employees of the Company and the
Company’s Affiliates and the Executive agrees to deliver to the Company upon
the Executive’s termination of employment with the Company or at such other
times as requested by the Company all Company Materials in the Executive’s
possession, custody or control or to certify to the loss or destruction of such
Company Materials.

 

(iii)          The Executive agrees that the Executive’s obligation not to
disclose or use information, know-how and records of the types set forth in
Sections 5(a)(i) and 5(a)(ii) hereof, also extends to such types of
information, know-how, records and tangible property of customers of the
Company or the Company’s Affiliates or suppliers to the Company or the Company’s
Affiliates or other third parties who may have disclosed or entrusted the same
to the Company or the Company’s Affiliates or to the Executive in the course of
the Company’s business.

 

(iv)          Notwithstanding the foregoing, such Proprietary Information shall
not include information which (A) is or becomes generally available or
known to the public, other than as a result of any disclosure by the Executive
in violation hereof, or (B) is or becomes available to the Executive on a
non-confidential basis from any source other than the Company, other than any
such source that the Executive knows is prohibited by a legal, contractual, or
fiduciary obligation to the Company from disclosing such information.

 

(v)           In the event that the Executive is requested pursuant to,
or becomes compelled by, any applicable law, regulation, or legal process to
disclose any Proprietary Information or Company Materials, the Executive shall
provide the Company with prompt written notice thereof so that the Company may
seek a protective order or other appropriate remedy or, in the Company’s sole
and absolute discretion, waive compliance with the terms hereof.  In the event that no such protective order or
other remedy is obtained, or the Company waives
compliance with the terms hereof, the Executive shall furnish only that portion
of such Proprietary Information or Company Materials which the Executive is
advised by his counsel and agreed to with Company counsel is legally
required.  The Executive will cooperate
with the 

 

7

 

Company, at the Company’s sole cost and
expense, in its efforts to obtain reliable assurance that confidential
treatment will be accorded such Proprietary Information and Company Materials.

 

(b)           Non-Disparagement.  During the Executive’s employment with the
Company and for a period of at least three (3) years following termination
of his employment for any reason, the Executive shall not make any statement
that is intended to or would be reasonably likely to disparage or encourage or
induce others to disparage the Company, its Affiliates or any of its or their
past and present officers, directors, 
products or services.  Similarly,
the Company agrees that, during the Executive’s employment with the Company and
for a period of at least three (3) years following termination of the
Executive’s employment for any reason, it shall not, and it shall instruct its
directors, senior executive officers and other individuals authorized to make
official communications on the Company’s behalf not to make, or cause to be
made, any statement or to communicate any information that disparages or
reflects negatively on Executive.  For
purposes of this Agreement, the term “disparage” includes, without
limitation, comments or statements by one party hereto to the press, to the
other party’s (or its  affiliate’s)
employees or to any individual or entity with whom the other party has a
business relationship (including, without limitation, any vendor, supplier,
customer or distributor) that is intended to or would be reasonably likely to
adversely affect in any manner:  (i) the
conduct of any business, services or products of the other party (including,
without limitation, any business plans or prospects), or (ii) the business
reputation of the other party.  Nothing
in this Section 5(b) is intended to or shall prevent either party
from providing, or limiting testimony in response to a valid subpoena, court
order, regulatory request or other judicial, administrative or legal process or
otherwise as required by law, or to defend that party from a breach by the
other party or its agents, employees, directors or other persons authorized to
speak for the breaching party.

 

(c)           Noncompetition and Nonsolicitation.

 

(i)            During the Executive’s employment with the Company and
for a period of six (6) months following termination of employment for any
reason, without the prior written
consent of the Company, the Executive shall not within the continental United
States, directly or indirectly, either for the Executive or any other
person,  manage, control, materially
participate in, permit the Executive’s name to be used by, act as consultant or
advisor to, render material services for (alone or in association with any
person, firm, corporation or other business organization) or otherwise assist
in any manner, any entity that engages in or owns, invests in, manages,
conducts or controls any venture or enterprise engaged in any Competitive
Business.  Nothing herein shall prohibit
the Executive from being a passive owner of the equity securities of a
corporation engaged in any Competitive Business, so long as the Executive has
no active participation in the business of such corporation.  As used herein, the term “Competitive
Business” shall mean any business which provides as its principal
business investment advisory or investment management services.

 

(ii)           During the Executive’s employment with the Company and for
a period of twelve (12) months following termination of employment for any
reason, the Executive shall not, directly or indirectly, (A) solicit, induce or attempt to induce or aid others
in inducing an employee of the Company or any of the Company’s Affiliates to
leave the employ of the Company or any of the Company’s Affiliates, or in any
way interfere with the relationship between the Company and an employee of the
Company or any of the Company’s Affiliates, 

 

8

 

except in the proper exercise of the
Executive’s authority, or (B) hire or attempt to hire any employee of the
Company or any of the Company’s Affiliates.

 

(iii)          If, at the time of enforcement of this Section 5(c), a
court shall hold that the duration, scope, area or other restrictions stated
herein are unreasonable under circumstances then existing, the Executive and the Company agree that it is the
intention of the parties that such provision should be enforceable to the
maximum extent permissible under applicable law.

 

(d)           Enforcement; Forfeiture.  In the event of a breach or threatened breach of any
of the provisions contained in this Section 5, the Executive agrees that
the Company shall be entitled to injunctive or other equitable relief in a
court of appropriate jurisdiction to remedy any such breach or threatened
breach, and the Executive
acknowledges that damages would be inadequate and insufficient.  The existence of this right to injunctive and
other equitable relief shall not limit any other rights or remedies that the
Company may have at law or in equity including, without limitation, the right
to monetary, compensatory and punitive damages.

 

(e)           Survival. 
The terms and provisions of Sections 4 and 5 shall survive the Executive’s
termination of employment with the Company for any reason and shall be fully
enforceable thereafter.

 

6.                                      Cooperation.

 

The Executive hereby agrees that, following termination of employment
for any reason, the Executive shall reasonably cooperate with the Company and
its Affiliates in providing information and assistance that the Company and its
Affiliates reasonably requests and in taking such other action as the Company
and its Affiliates may reasonably request including, without limitation,
consultation concerning the Executive’s areas of responsibility.  The Executive further agrees to reasonably
assist the Company and its Affiliates with respect to all reasonable requests
to testify in connection with any legal proceeding or matter relating to the
Company or its Affiliates, including but not limited to, any federal, state or
local audit, proceeding or investigation, other than proceedings relating to
the enforcement of this Agreement or other proceedings in which the Executive
is a named party whose interests are adverse to those of the Company.  The Company will reimburse any reasonable out-of-pocket
expenses incurred by the Executive incurred at the request of the Company in
connection with any such cooperation or participation.

 

7.                                      Notices.

 

Any notice or other communication required or permitted to be given
under this Agreement (a “Notice”) shall be in writing and delivered in person,
by facsimile transmission (with a Notice contemporaneously given by another
method specified in this Section 7), by overnight courier service or by
postage prepaid mail with a return receipt requested, at the following
locations (or to such other address as either party may have furnished to the
other in writing by like Notice.  All
such Notices shall only be duly given and effective upon receipt (or refusal of
receipt).

 

If
to the Executive:                                       At the last address on the records of the
Company.

 

9

 

If
to the Company:             Janus Capital Group Inc.

151 Detroit St.

Denver, CO 80206

Attn: 
General Counsel

Facsimile: 
303-639-6662

 

8.                                      Arbitration.

 

Except as specifically provided herein, any
dispute or controversy arising under or in connection with this Agreement shall
be settled exclusively by arbitration, conducted before a single arbitrator
mutually selected by the parties, in the State of Colorado, in accordance with
the rules of the American Arbitration Association for employment disputes
then in effect.  If the parties are
unable to agree on a single arbitrator, each party shall select an arbitrator
and the two arbitrators selected by the parties shall select a third arbitrator.  If three arbitrators are selected, they shall
act by majority vote.  Judgment may be
entered on the arbitrator’s award in any court having jurisdiction.  Each party shall bear their own costs and
expenses of any such arbitration proceeding and
shall share equally the costs of the third arbitrator, if any.  In the event of any dispute or controversy
hereunder, each party hereto shall be responsible for its own legal
fees.

 

9.                                      Waiver of Breach.

 

Any waiver of any breach of this Agreement
shall not be construed to be a continuing waiver or consent to any subsequent
breach on the part either of the Executive or of the Company.

 

10.                               Non-Assignment; Successors.

 

This Agreement is personal to each of the parties hereto.  Except as provided in this Section 10,
no party may assign or delegate any rights or obligations hereunder without
first obtaining the advanced written consent of the other party hereto.  Any purported assignment or delegation by the
Executive in violation of the foregoing shall be null and void ab initio and of no force and effect.  The Company may assign this Agreement to a
person or entity that is an Affiliate or to any successor to all or
substantially all of the business and/or assets of the Company which assumes in
writing, or by operation of law, the obligations of the Company hereunder.  As used in this Agreement, “Company”
shall mean the Company and any successor to its business and/or assets, which
assumes and agrees to perform this Agreement by operation of law, or otherwise.

 

11.                               Severability.

 

To the extent that any provision of this
Agreement or portion thereof shall be invalid or unenforceable, it shall be
considered deleted therefrom and the remainder of such provision and of this
Agreement shall be unaffected and shall continue in full force and effect.

 

10

 

12.                               Counterparts.

 

This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

 

13.          Governing
Law.  All issues and questions
concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by, and construed in accordance with, the laws of
the State of Colorado, without giving effect to any choice of law or conflict
of law rules or provisions that would cause the application hereto of the
laws of any jurisdiction other than the State of Colorado.  In furtherance of the foregoing, the internal
law of the State of Colorado shall control the interpretation and construction
of this Agreement, even though under any other jurisdiction’s choice of law or
conflict of law analysis the substantive law of some other jurisdiction may
ordinarily apply.

 

14.                               Compliance with 409A.

 

(a)           This
Agreement is intended to comply with Section 409A of the Code and its
corresponding regulations, or an exemption, and payments may only be made under
this Agreement upon an event and in a manner permitted by Section 409A, to
the extent applicable.  Separation pay
provided under this Agreement is intended to be exempt from Section 409A
under the “separation pay exception,” to the maximum extent applicable.  Further, any payments that qualify for the “short-term
deferral” exception or another exception under Section 409A of the Code
shall be paid under the applicable exception. 
Notwithstanding
anything in this Agreement to the contrary, if Executive is considered a “specified
employee” for purposes of Section 409A of the Code and if payment of any
amounts under this Agreement is required to be delayed for a period of six
months after separation from service pursuant to Section 409A of the Code,
payment of such amounts shall be delayed as required by Section 409A of
the Code, and the accumulated amounts shall be paid in a lump sum payment
within ten days after the end of the six-month period.  If Executive dies during the postponement
period prior to the payment of benefits, the amounts withheld on account of Section 409A
of the Code shall be paid to the personal representative of Executive’s estate
within 60 days after the date of Executive’s death.

 

(b)           All separation payments to be made upon a termination of
employment under this Agreement may only be made upon a “separation from
service” under Section 409A of the Code. 
For purposes of Section 409A of the Code, the
right to a series of installment payments under this Agreement shall be treated
as a right to a series of separate payments. 
In no event may the Executive, directly or indirectly, designate the
calendar year of a payment.  All reimbursements
and in-kind benefits provided under the Agreement shall be made or provided in
accordance with the requirements of Section 409A of the Code, including,
where applicable, the requirement that (i) any reimbursement is for
expenses incurred during the period of time specified in this Agreement, (ii) the
amount of expenses eligible for reimbursement, or in kind benefits provided,
during a calendar year may not affect the expenses eligible for reimbursement,
or in kind benefits to be provided, in any other calendar year, (iii) the
reimbursement of an eligible expense will be made no later than the last day of
the calendar year following the year in which the expense is incurred, and (iv) the
right to reimbursement or in kind benefits is not subject to liquidation or
exchange for another benefit.

 

11

 

15.                               Entire Agreement.

 

This Agreement constitutes the entire
agreement by the Company and the Executive with respect to the subject matter
hereof, and supersedes any and all prior agreements or understandings between
the Executive and the Company with respect to the subject matter hereof,
whether written or oral.  This Agreement
may be amended or modified only by a written instrument executed by the
Executive and the Company.

 

[SIGNATURES TO FOLLOW]

 

12

 

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

 

 

	
   

  	
  /s/
  Richard M. Weil

  
	
   

  	
  Executive

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JANUS
  CAPITAL GROUP INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Steven L. Scheid

  
	
   

  	
   

  	
  Steven
  L. Scheid

  
	
   

  	
   

  	
  Chairman of the Board

  

 

13

 

Exhibit A

 

LEGAL RELEASE

 

This Legal
Release (“Release”) dated
as of the last date executed below (the “Release Date”) is between Janus
Capital Group Inc. (“Janus”) and Richard M. Weil (“Executive”) (each a “Party,” and together, the “Parties”).  Any terms not defined herein shall be defined
as set forth in the Severance Agreement (defined below).

 

Recitals

 

A.     Executive and Janus are
parties to a Severance Rights Agreement dated as of February 1, 2010, to
which this Release is appended as Exhibit A (the “Severance Agreement”).  Executive’s employment terminated on [date] (the “Date of Termination”) under circumstances that
give rise to payments and benefits under Section 4 thereof.

 

B.      Executive wishes to receive
the payments and/or benefits defined in Section 4 of the Severance
Agreement and this Release, which payments and/or benefits are conditioned upon
Executive’s execution (and non-revocation) of a full waiver and release in the
form hereof.

 

C.         Janus wishes to benefit from the covenants and agreements
referred to in the Severance Agreement and in this Release, and other good and
valuable consideration, the receipt and sufficiency of which is hereby
irrevocably acknowledged.

 

Agreement

 

The Parties agree as follows:

 

1.             Confirmation of Severance
Benefit Obligation.  Janus shall
pay or provide to the Executive the entire severance benefit to which Executive
is entitled pursuant to Section 4 of the Severance Agreement (the “Severance
Benefit”), as, when and on the terms and conditions specified in the Severance
Agreement.

 

2.             Legal Release of Claims by
Executive.

 

(a)           Executive,
individually and on behalf of Executive’s heirs, personal representatives,
executors, administrators, successors and assigns, knowingly and voluntarily
releases, waives and forever discharges Janus and its affiliates and any of
their respective parents, subsidiaries and affiliates, together with all of
their respective past and present directors, officers, shareholders, trustees,
members, managers, partners, employees, agents, attorneys, representatives and
insurers, and each of their affiliates, heirs, predecessors, successors and
assigns (collectively, the “Company Releasees”) from any and all claims,
charges, complaints, promises, agreements, controversies, liens, demands,
causes of action, obligations, losses, damages and liabilities of any kind and
nature whatsoever, whether known or unknown, whether suspected or unsuspected,
whether in law or in equity, whether fixed or contingent (“Claims”), that
Executive or Executive’s heirs, executors, administrators, or assigns ever had,
now have, or may hereafter claim to have against any of the Company Releasees
by reason of any matter,

 

 

cause or thing whatsoever from the beginning of time
through the Release Date, whether or not previously asserted before any state
or federal court, agency or governmental entity or any arbitral body.  This legal release includes, without
limitation, any rights or claims relating in any way to Executive’s employment
relationship and/or association with Janus or any of the Company Releasees, or
Executive’s resignation therefrom, and all rights and claims arising under
federal, state, or local laws prohibiting disability, handicap, age, sex, race,
national origin, religion, sexual orientation, retaliation, or any other form
of discrimination, such as the Americans with Disabilities Act, 42
U.S.C.§§ 12101 et  seq.; the Age Discrimination in Employment
Act, as amended, 29 U.S.C. §§ 621 et  seq.; Title VII of the
1964 Civil Rights Act, as amended, 42 U.S.C. §§ 2000e et  seq.;
Claims for intentional infliction of emotional distress, tortious interference
with contract or prospective advantage; Claims for breach of express or implied
contract; and under any policy, agreement, understanding or promise, written or
oral, formal or informal, between Executive and a Company Releasee; promise,
misrepresentation, negligence, estoppel, defamation, violation of public policy
and other tort claims; any claim for costs, fees, or other expenses, including
attorneys’ fees; and any rights relating to any long-term incentive award
granted to Executive by Janus or any affiliate thereof (“LTI Award”)
that had not vested by its own terms as of the Date of Termination; provided, however, that notwithstanding
the foregoing or anything else contained in this Release, the legal release set
forth in this Section 2(a) shall not extend to: (i) any
unpaid amounts due under Section 4(g) of the Severance Agreement that
were earned or reimbursable prior to the Date of Termination; (ii) any
rights arising under or recognized by this Release or the Severance Agreement; (iii) any
rights related to any LTI Award or Sign-On Bonus to the extent that such LTI
Award or Sign-On Bonus had vested as of the Date of Termination or shall become
vested pursuant to Section 4(c) of the Severance Agreement
(collectively “Vested LTI Awards”); (iv) any rights to
indemnification under the terms of the Severance Agreement, the by-laws,
charter or any insurance policy under which Executive is entitled to coverage; (v) any
rights to which the Executive is entitled to under any of the pension, welfare
or other employee benefit or incentive plans, programs or arrangements
maintained by the Company; or (vi) be construed to prohibit Executive
from bringing appropriate proceedings to enforce this Release (the “Executive Excluded Claims”).

 

(b)           In
order to provide a full and complete release, Executive understands and agrees
that this Release is intended to include all claims, if any, covered under this
Section 2 that Executive may have and not now know or suspect to exist in
Executive’s favor against the Company Releasees and that this Release
extinguishes such claims, other than the Executive Excluded Claims.  Thus, Executive expressly waives all rights
under any statute or common law principle in any jurisdiction that provides, in
effect, that a general release does not extend to claims which Executive does
not know or suspect to exist in Executive’s favor at the time of executing the
Release, which if known by Executive may have materially affected Executive’s
settlement with the Company Releasees, other than the Executive Excluded Claims.

 

(c)           Executive
hereby warrants that Executive has not assigned or transferred to any person
any portion of any claim which is released, waived and discharged above.  Executive further states and agrees that
Executive has not experienced any illness, injury, or disability compensable or
recoverable under the worker’s compensation laws of Colorado or other
applicable state’s worker’s compensation laws, that has not as of the Release
Effective Date been made the subject of a claim for Workers’ Compensation
benefits, and Executive

 

2

 

agrees that Executive will not file a worker’s
compensation claim asserting the existence of any such illness, injury, or
disability.  Executive
has specifically been advised and urged by Janus to consult with Executive’s
attorneys with respect to the agreements, representations, and declarations set
forth in the previous sentence. 
Executive understands and agrees that by signing this Release Executive
is giving up Executive’s right to bring any legal claim against any Company
Releasee concerning, directly or indirectly, Executive’s employment
relationship with Janus, including Executive’s separation from association
and/or employment, and/or any and all contracts between Executive and any
Company Releasee, express or implied. 
Executive agrees that this Release is intended to be interpreted in the
broadest possible manner in favor of the Company Releasees, to include all
actual or potential legal claims that Executive may have against any Company
Releasees, except as specifically provided otherwise in this Release, and
acknowledges that this Release provides Executive with benefits to which
Executive would not otherwise be entitled, and understands its terms and that
Executive enters into this Release freely, voluntarily, and without coercion.

 

(d)           Executive
acknowledges that Executive consulted with an attorney of Executive’s choosing
before signing the Severance Agreement and this Release, and that Janus
provided Executive with no fewer than thirty-eight (38) days following the Date
of Termination during which to consider whether to sign this Release and,
specifically, the release set forth in Section 2(a) above, although
Executive may sign and return the Release sooner if Executive so chooses.  Executive further acknowledges that Executive
has the right to revoke this Release for a period of seven (7) days after
signing it and that this Release shall not become effective until such seven
(7)-day period has expired (the “Release
Effective Date”).  Executive
acknowledges and agrees that if Executive wishes to revoke this Release,
Executive must give notice of such revocation in conformity with Section 4(b) below,
no later than 5 p.m. (Mountain Time) on the seventh (7th) day after
Executive has signed this Release. 
Executive acknowledges and agrees that, if he revokes this Release,
Executive shall have no right to receive the Severance Benefit.  If Executive does not revoke/rescind this
Release within such seven (7)-day period, this Release shall become final and
binding and shall be irrevocable.

 

(e)           Executive
agrees to pay all taxes relating to or arising from any payment made or
consideration provided pursuant to the Severance Agreement (other than as
expressly provided for therein); provided that all payments required to be made
by the Company to the Executive under the Severance Agreement shall be subject
to the withholding of such amounts for taxes and other payroll deductions as
the Company may reasonably determine it should withhold pursuant to any
applicable law or regulation.

 

(f)            Janus
shall reimburse Executive for his reasonable business expenses related to his
employment with Janus through the Date of Termination, consistent with the
Janus’s policies, and conditioned on Executive’s presentation to Janus, within
10 (ten) days after the Release Effective Date, of documentation verifying such
expenses.

 

3.             Legal Release of Claims by
Janus.

 

(a)           Janus,
individually and on behalf of its controlled subsidiaries, assignees,
successors and assigns (collectively, the “Janus Releasors”), knowingly and
voluntarily releases, waives and forever discharges Executive and his heirs, personal
representatives, executors, administrators, successors and assigns, each in
their capacity as such (collectively, the

 

3

 

“Executive Releasees”) from any and all Claims
that any of the Janus Releasors ever had, now have, or may hereafter claim to
have against any of the Executive Releasees by reason of any matter, cause,
action, omission, course or thing whatsoever from the beginning of time through
the Release Date whether or not previously asserted before any state or federal
court, agency or governmental entity or any arbitral body.  This legal release includes, without
limitation, any rights or claims relating in any way to Executive’s employment
relationship, service relationship, and/or association with Janus or any of the
Janus Releasors, or Executive’s resignation therefrom, Claims for tortious
interference with contract or prospective advantage; Claims for breach of
express or implied contract; and under any policy, agreement, understanding or
promise, written or oral, formal or informal, between Janus and Executive;
promise, misrepresentation, negligence, estoppel, defamation, violation of
public policy and other tort claims; any claim for costs, fees, or other
expenses, including attorneys’ fees; and any rights relating to any LTI
Award; provided, however,
that notwithstanding the foregoing or anything else contained in this Release,
the legal release set forth in this Section 3(a) shall not extend to (i) any
rights arising under or recognized by this Release; (ii) any right of
Janus in the Severance Agreement; (iii) any claims involving good
faith allegations of fraud, embezzlement or other violations of criminal
statutes by Executive with respect to the Company, shareholder claims that are
made against directors or officers relating to Executive’s tenure as an officer
or director, any breach of fiduciary duty by
Executive as an employee, officer or director of Janus which is not
indemnifiable under the laws of Colorado or Delaware; or (iv) be construed
to prohibit Janus from bringing appropriate proceedings to enforce this Release
(the “Janus Excluded Claims”).

 

(b)           In
order to provide a full and complete release, Janus understands and agrees that
this Release is intended to include all claims, if any, covered under this Section 3
that Janus may have and not now know or suspect to exist in Janus’ favor
against the Executive Releasees and that this Release extinguishes such claims,
other than the Janus Excluded Claims. 
Thus, Janus expressly waives all rights under any statute or common law
principle in any jurisdiction that provides, in effect, that a general release
does not extend to claims which Janus does not know or suspect to exist in
Janus’ favor at the time of executing the Release, which if known by Janus may
have materially affected Janus’ settlement with the Executive Releasees, other
than the Janus Excluded Claims.

 

(c)           Janus
hereby warrants that Janus has not assigned or transferred to any person any
portion of any claim which is released, waived and discharged above. Janus
understands and agrees that by signing this Release Janus is giving up Janus’
right to bring any legal claim against any Executive Releasee concerning,
directly or indirectly, Executive’s employment relationship with Janus,
including Executive’s separation from association and/or employment, and/or any
and all contracts between Janus and Executive, express or implied.  Janus agrees that notwithstanding any other
provision of this Release to the contrary, this Section 3 is intended to
be interpreted in the broadest possible manner in favor of the Executive
Releasees, to include all actual or potential legal claims that Janus may have
against any Executive Releasees, except as specifically provided otherwise in
this Release, and acknowledges that this Release provides Janus with benefits
to which Janus would not otherwise be entitled, and understands its terms and
that Janus enters into this Release freely, voluntarily, and without coercion.

 

4

 

4.     Miscellaneous.

 

(a)           This Release shall be
governed by and construed in accordance with the laws of the State of Colorado
without reference to principles of conflict of laws. The captions of this
Release are not part of the provisions hereof and shall have no force or
effect.  This Release may not be amended
or modified otherwise than by a written agreement executed by the Parties
hereto or their respective successors and legal representatives.

 

(b)           All notices and other
communications shall be in writing and shall be delivered personally to the
party to receive the same, given by electronic means, or when mailed first
class postage prepaid, by registered or certified mail, return receipt
requested, addressed to the party to receive the same as set forth below, or
such other address as the party to receive the same may have specified by
written notice given in the manner provided for in this Section 4(b).  All notices shall be deemed to have been
given as of the date of personal delivery, transmittal or mailing thereof.

 

If
to Executive, to:

 

 

If
to Janus, to:

 

Janus Capital Group Inc.

Attention:  General Counsel

151 Detroit Street

Denver, Colorado 80206

 

(d)           The invalidity or
unenforceability of any provision of this Release shall not affect the validity
or enforceability of any other provision of this Release.

 

(e)           Executive’s or Janus’
failure to insist upon strict compliance with any provision of this Release or
the failure to assert any right Executive or Janus may have hereunder shall not
be deemed to be a waiver of such provision or right or any other provision or
right of this Release.

 

(f)            Except with respect to
Executive’s right to continued employment with Janus, which terminated on the
Date of Termination, and except as otherwise specifically amended by this
Release, the Severance Agreement shall remain in full force and effect
according to its terms, including without limitation, Sections 4(n), 5 and 6 of
the Severance Agreement.  From and after
the Release Effective Date, this Release shall supersede all agreements between
the parties other than the Severance Agreement and the agreements reflecting
Vested LTI Awards.

 

(g)           All disputes relating to or
arising from this Release shall be tried only in accordance with the arbitration
provisions of Section 8 of the Severance Agreement.

 

5

 

(h)           By entering into this Release, neither Janus nor
Executive admits any impropriety, wrongdoing or liability of any kind
whatsoever.

 

(i)            Each party shall promptly execute, acknowledge and
deliver any additional document or agreement that the other party reasonably
believes is necessary to carry out the purpose or effect of this Release.

 

(j)            By signing this Release,
each Party acknowledges that the Party has carefully read and understands all
the terms and provisions of this Release and has given them careful
consideration, and that the Party voluntarily signs this Release as the Party’s
own free act without coercion or duress.

 

(k)           Any Party contesting the validity or enforceability of
any term of this Release shall be required to prove by clear and convincing
evidence fraud, concealment, failure to disclose material information,
unconscionability, misrepresentation or mistake of fact or law.

 

(l)            The Parties acknowledge that they have reviewed this Release in its
entirety and have had a full and fair opportunity to negotiate its terms, in
consultation with counsel of their own choosing.  Each Party
therefore waives all applicable rules of construction that any provision
of this Release should be construed against its drafter, and agrees that all
provisions of the Release shall be construed as a whole, according to the fair
meaning of the language used.

 

(m)          This Release may be signed
in counterparts, each of which will be deemed an original and will constitute
one and the same instrument.  The parties
further agree that this Release may be executed by the exchange of facsimile
signature pages provided that by doing so the parties agree to undertake
to provide original signatures as soon thereafter as reasonable in the
circumstances.

 

[SIGNATURE
PAGE FOLLOWS]

 

6

 

NOTE:  DO NOT SIGN THIS LEGAL RELEASE UNTIL AFTER
EXECUTIVE’S DATE OF TERMINATION.

 

 

	
   

  	
  JANUS CAPITAL GROUP INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Richard M. Weil

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

7

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