Document:

Exhibit 10.6

 

ONE BAY PLAZA

BURLINGAME, CALIFORNIA

 

 

OFFICE LEASE AGREEMENT

 

 

BETWEEN

 

 

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

(“LANDLORD”)

 

 

AND

 

 

Opta Corporation,
a Delaware corporation

(“TENANT”)

 

 

OFFICE LEASE AGREEMENT

 

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

 

1.     Basic Lease Information.

 

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

 

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

 

1.03         “Base
Rent”:

 

	
  Period or Months of Term

  	
   

  	
  Annual Rate

  Per Square Foot

  	
   

  	
  Monthly

  Base Rent

  	
   

  
	
  Months 1 – 12

  	
   

  	
  $

  	
  18.00

  	
   

  	
  $

  	
  4,794.00

  	
   

  
								

 

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

 

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

 

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

 

1.07         Allowance(s):
None

 

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

 

1.09         “Guarantor(s)”:  None

 

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

 

1.11         “Permitted
Use”:  General office use.

 

1.12         “Notice
Address(es)”:

 

	
  Landlord:

  	
   

  	
  Tenant:

  
	
   

  	
   

  	
   

  
	
  CA-One Bay Plaza Limited Partnership

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

  950 Tower Lane

  Suite 950

  Foster City, California 94404

  Attention: Property Manager

  	
   

  	
  Opta Corporation

  2402 Michelson Drive

  Suite 220

  Irvine, CA 92612

  

 

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

 

1.13         “Business
Day(s)” are Monday through Friday of each week, exclusive of New Year’s Day,
Presidents Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day (“Holidays”). Landlord may designate additional Holidays
that are

 

1

 

commonly recognized by other
office buildings in the area where the Building is located. “Building Service
Hours” are 8:00 a.m. to 6:00 p.m. on Business Days.

 

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

 

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

 

2.     Lease
Grant.

 

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

 

3.     Adjustment
of Commencement Date; Possession.

 

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

 

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

 

4.     Rent.

 

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

 

2

 

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

 

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

 

5.     Compliance
with Laws; Use.

 

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

 

6.             Security
Deposit.

 

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

 

7.             Building
Services.

 

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

 

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

 

3

 

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

 

8.             Leasehold
Improvements.

 

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

 

9.             Repairs
and Alterations.

 

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

 

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

 

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

 

4

 

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

 

10.           Entry by Landlord.

 

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

 

11.           Assignment
and Subletting.

 

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

 

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

 

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

 

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

 

5

 

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

 

12.           Liens.

 

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

 

13.           Indemnity
and Waiver of Claims.

 

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

 

14.           Insurance.

 

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

 

6

 

15.           Subrogation.

 

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

 

16.           Casualty
Damage.

 

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

 

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

 

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

 

17.           Condemnation.

 

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

 

7

 

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

 

18.           Events
of Default.

 

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

 

19.           Remedies.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

20.           Limitation
of Liability.

 

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

 

21.           Relocation.
Intentionally Omitted.

 

9

 

22.           Holding
Over.

 

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

 

23.           Subordination
to Mortgages; Estoppel Certificate.

 

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

 

24.           Notice.

 

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

 

25.           Surrender
of Premises.

 

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

 

26.           Miscellaneous.

 

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

 

10

 

the purpose of identifying suspected
terrorists.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

[SIGNATURES FOLLOW ON NEXT PAGE]

 

11

 

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

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a

  Delaware limited partnership

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

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

  company, its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

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

  Delaware limited liability company, its non-

  member manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Kenneth Young

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  Opta Corporation, a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Wang

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
  COO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tenant’s Tax ID Number (SSN or FEIN)

  
									

 

12

 

EXHIBIT A

 

OUTLINE AND LOCATION OF PREMISES

 

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

 

1

 

EXHIBIT B

 

EXPENSES AND TAXES

 

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

 

1.             Payments.

 

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

 

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

 

2.             Expenses.

 

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

 

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

 

1

 

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

 

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

 

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

 

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

 

2

 

EXHIBIT C

 

WORK LETTER

 

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

 

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

 

WORK LIST

 

ITEM

	
   

  	
   

  	
   

  
	
  (A)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (B)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (C)

  	
   

  	
  Landlord shall steam clean the carpets
  within the Premises.

  

 

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

 

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

 

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

 

1

 

EXHIBIT C-1

 

DEPICTION OF LANDLORD WORK

 

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

 

1

 

EXHIBIT D

COMMENCEMENT LETTER

(EXAMPLE)

 

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

 

	
  Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tenant

  	
   

  	
   

  	
   

  
	
  Address

  	
   

  	
   

  	
   

  

 

Re:          Commencement
Letter with respect to that certain Lease dated as of the
        day of
                  ,
          , by and between 

                                            ,
as Landlord, and
                                                      ,
as Tenant, for
            
rentable square feet on the                
floor of the Building located at
                                                                .

 

Dear                                            :

 

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

 

1.             The
Commencement Date of the Lease is
                                                 ;

 

2.             The
Termination Date of the Lease is
                                                        .

 

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

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  
	
   

  	
   

  
	
  Agreed and Accepted:

  	
   

  
	
   

  	
   

  
	
   

  	
  Tenant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
					

 

1

 

EXHIBIT E

 

BUILDING RULES AND REGULATIONS

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

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

 

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

 

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

 

3

 

EXHIBIT F

 

ADDITIONAL PROVISIONS

 

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

 

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

 

2.             Renewal
Option.

 

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

 

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

 

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

 

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

 

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

 

B.            Terms
Applicable to Premises During Renewal Term.

 

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

 

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

 

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

 

1

 

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

 

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

 

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

 

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

 

3.             Roof Space For Dish/Antenna.

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

EXHIBIT G

 

PARKING AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

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

 

1

 

RULES

 

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

 

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

 

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

 

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

 

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

 

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

 

(a)           Areas
not striped for parking

(b)           aisles

(c)           where
“no parking” signs are posted

(d)           ramps

(e)           loading
zones

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

3

 

EXHIBIT H

 

ASBESTOS NOTIFICATION

 

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

 

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

 

ACM

 

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

 

PACM

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

 

FIRST AMENDMENT

 

THIS  FIRST AMENDMENT (the “Amendment”) is
made and entered into as of September 9, 2005, by and between CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a Delaware limited partnership (“Landlord”) and OPTA CORPORATION, a
Delaware corporation (“Tenant”).

 

RECITALS

 

A.            Landlord
and Tenant are parties to that certain lease dated October 7, 2004 (the “Lease”). Pursuant to the Lease, Landlord has leased to
Tenant space currently containing approximately 3,196
rentable square feet (the “Original Premises”)
described as Suite 740 on the 7th floor of the building commonly known as
One Bay Plaza located at 1350 Old Bayshore Highway, Burlingame, California (the
“Building”).

 

B.            Tenant
and Landlord agree to relocate Tenant from the Original Premises to 1,210 rentable square feet of space described as Suite 600
on the 6th floor of the Building shown on Exhibit A
attached hereto (the “Substitution Space”).

 

C.            The
Lease by its terms shall expire on October 31, 2005 (“Prior
Termination Date”), and the parties desire to extend the Term, all
on the following terms and conditions.

 

NOW,
THEREFORE, in consideration of the above recitals
which by this reference are incorporated herein, the mutual covenants and
conditions contained herein and other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Landlord and Tenant agree as
follows:

 

1.             Substitution.

 

1.01.        Effective
as of the Substitution Effective Date (hereinafter defined), the Substitution
Space is substituted for the Premises and, from and after the Substitution
Effective Date, the Premises, as defined in the Lease, shall be deemed to mean
the Substitution Space containing 1,210 rentable
square feet and described as Suite 600 on the 6th floor of the Building.

 

1.02.        The
Term for the Substitution Space shall commence on the Substitution Effective
Date and, unless sooner terminated pursuant to the terms of the Lease, shall
end on the Extended Termination Date (as hereinafter defined). The Substitution
Space is subject to all the terms and conditions of the Lease except as
expressly modified herein and except that Tenant shall not be entitled to
receive any allowances, abatements or other financial concessions granted with
respect to the Original Premises unless such concessions are expressly provided
for herein with respect to the Substitution Space. Effective as of the
Substitution Effective Date, the Lease shall be terminated with respect to the
Original Premises, and, unless otherwise specified, “Premises”
shall mean the Substitution Space. Tenant shall vacate the Original Premises as of the
Substitution Effective Date (such date
that Tenant is required to vacate the Original Premises being referred to
herein as the “Original Premises Vacation Date”)
and return the same to Landlord in “broom clean” condition and otherwise
in accordance with the terms and conditions of the Lease.

 

2.             Substitution Effective Date.

 

2.01.        The
“Substitution Effective Date” shall be November 1,
2005.

 

2.02.        The
Substitution Effective Date shall be delayed to the extent that Landlord fails
to deliver possession of the Substitution Space as a result of holding over by
prior occupants. Any such delay in the Substitution Effective Date shall not
subject Landlord to any liability for any loss or damage resulting therefrom.
If the Substitution Effective Date is delayed, the Extended Termination Date
shall not be similarly extended.

 

3.             Extension.
The Term of the Lease is extended for a period of 12 months and shall
expire on October 31, 2006 (“Extended Termination Date”),
unless sooner terminated in accordance with the terms of the Lease. That
portion of the Term commencing the day immediately following the Prior
Termination Date (“Extension Date”)
and ending on the Extended Termination Date shall be referred to herein as the “Extended Term”.

 

1

 

4.             Base
Rent.  As of the Substitution Effective Date, the schedule of Base
Rent payable with respect to the Premises during the remainder of the current
Term and the Extended Term is the following:

 

	
  Period

  	
   

  	
  Annual Rate Per Square

  Foot

  	
   

  	
  Monthly Base Rent

  	
   

  
	
  11/1/05 –
  10/31/06

  	
   

  	
  $

  	
  24.60

  	
   

  	
  $

  	
  2,480.50

  	
   

  
								

 

All such Base Rent shall be payable by Tenant in
accordance with the terms of the Lease, as amended hereby.

 

5.             Additional
Security Deposit.  No additional security deposit shall be required in
connection with this Amendment.

 

6.             Tenant’s
Pro Rata Share.  For the period commencing with the Substitution
Effective Date and ending on the Extended Termination Date, Tenant’s Pro Rata
Share for the Premises is 0.6854%.

 

7.             Expenses and Taxes.  For the period
commencing with the Substitution Effective Date and ending on the Extended
Termination Date, Tenant shall pay for Tenant’s Pro Rata Share of Expenses and
Taxes applicable to the Premises in accordance with the terms of the Lease, as
amended hereby.

 

8.             Improvements
to Substitution Space.

 

8.01.        Condition of Substitution Space. Tenant has inspected the
Substitution Space and agrees to accept the same “as is” without any
agreements, representations, understandings or obligations on the part of
Landlord to perform any alterations, repairs or improvements, except as may be
expressly provided otherwise in this Amendment.

 

8.02.        Responsibility for Improvements to Substitution Space. Landlord
shall perform improvements to the Substitution Space in accordance with
the Substitution Space Work Letter attached hereto as Exhibit B.

 

9.             Early Access to Substitution Space.
If Tenant is permitted to take possession of the Substitution Space before the
Substitution Effective Date, such possession shall be subject to the terms and
conditions of the Lease and this Amendment and Tenant shall pay Base Rent and
Additional Rent applicable to the Substitution Space to Landlord for each day
of possession prior to the Substitution Effective Date. However, except for the
cost of services requested by Tenant (e.g. freight elevator usage), Tenant
shall not be required to pay Rent for the Substitution Space for any days of
possession before the Substitution Effective Date during which Tenant, with the
approval of Landlord, is in possession of the Substitution Space for the sole
purpose of performing improvements or installing furniture, equipment or other
personal property.

 

10.           Holding Over. If Tenant continues
to occupy the Original Premises after the Original Premises Vacation Date (as
defined in Section 1 above), occupancy of the Original Premises subsequent
to the Original Premises Vacation Date shall be that of a tenancy at sufferance
and in no event for month-to-month or year-to-year, but Tenant shall,
throughout the entire holdover period, be subject to all the terms and
provisions of the Lease and shall pay for its use and occupancy an amount (on a
per month basis without reduction for any partial months during any such
holdover) equal to twice the sum of the Base Rent and Additional Rent due for
the period immediately preceding such holding over, provided that in no event
shall Base Rent and Additional Rent during the holdover period be less than the
fair market rental for the Original Premises. No holding over by Tenant in the
Original Premises or payments of money by Tenant to Landlord after the Original
Premises Vacation Date shall be construed to prevent Landlord from recovery of
immediate possession of the Original Premises by summary proceedings or
otherwise. In addition to the obligation to pay the amounts set forth above
during any such holdover period, Tenant also shall be liable to Landlord for
all damage, including any consequential damage, which Landlord may suffer
by reason of any holding over by Tenant in the Original Premises, and Tenant
shall indemnify Landlord against any and all claims made by any other tenant or
prospective tenant against Landlord for delay by Landlord in delivering
possession of the Original Premises to such other tenant or prospective tenant.

 

2

 

11.           Other
Pertinent Provisions.  Landlord and Tenant agree that, effective as of
the date of this Amendment (unless different effective date(s) is/are
specifically referenced in this Section), the Lease shall be amended in the
following additional respects:

 

11.01.      Tenant Improvements. Tenant hereby acknowledges that
Landlord has completed all of its obligations to complete the improvements
described in Exhibit C of the Lease.

 

11.02.      Deletion. Section 2 of Exhibit F
to the Lease is hereby deleted in its entirety and is of no further force or
effect.

 

11.03.      Parking. Effective as of the Substitution
Effective Date, reference to “11 non-reserved parking spaces” is hereby amended
and restated as “7 non-reserved parking spaces.”

 

12.           Miscellaneous.

 

12.01.      This
Amendment and the attached exhibits, which are hereby incorporated into and
made a part of this Amendment, set forth the entire agreement between the
parties with respect to the matters set forth herein. There have been no
additional oral or written representations or agreements. Under no
circumstances shall Tenant be entitled to any Rent abatement, improvement
allowance, leasehold improvements, or other work to the Substitution Space, or
any similar economic incentives that may have been provided Tenant in
connection with entering into the Lease, unless specifically set forth in this
Amendment. Tenant agrees that neither Tenant nor its agents or any other
parties acting on behalf of Tenant shall disclose any matters set forth in this
Amendment or disseminate or distribute any information concerning the terms,
details or conditions hereof to any person, firm or entity without obtaining
the express written consent of Landlord.

 

12.02.      Except
as herein modified or amended, the provisions, conditions and terms of the
Lease shall remain unchanged and in full force and effect.

 

12.03.      In
the case of any inconsistency between the provisions of the Lease and this
Amendment, the provisions of this Amendment shall govern and control.

 

12.04.      Submission
of this Amendment by Landlord is not an offer to enter into this Amendment but
rather is a solicitation for such an offer by Tenant. Landlord shall not be
bound by this Amendment until Landlord has executed and delivered the same to
Tenant.

 

12.05.      The
capitalized terms used in this Amendment shall have the same definitions as set
forth in the Lease to the extent that such capitalized terms are defined
therein and not redefined in this Amendment.

 

12.06.      Tenant
hereby represents to Landlord that Tenant has dealt with Jon Mackey of Cornish &
Carey in connection with this Amendment. Tenant agrees to indemnify and hold
Landlord and the Landlord Related
Parties harmless from all claims of any other brokers claiming to have
represented Tenant in connection with this Amendment. Landlord hereby
represents to Tenant that Landlord has dealt with no broker in connection with
this Amendment. Landlord agrees to indemnify and hold Tenant and the Tenant Related Parties harmless from
all claims of any brokers claiming to have represented Landlord in connection
with this Amendment.

 

12.07.      Each
signatory of this Amendment represents hereby that he or she has the authority
to execute and deliver the same on behalf of the party hereto for which such
signatory is acting.

 

[SIGNATURES ARE ON FOLLOWING PAGE]

 

3

 

IN WITNESS
WHEREOF, Landlord and Tenant have duly executed this
Amendment as of the day and year first above written.

 

	
  LANDLORD:

  
	
   

  
	
  CA-ONE
  BAY PLAZA LIMITED PARTNERSHIP, a

  Delaware limited partnership

  
	
   

  
	
  By:

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

  company, its general partner 

  
	
   

  	
   

  
	
   

  	
  By:

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

  Delaware limited liability company, its non-

  member manager

  
	
   

  	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth Young 

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Managing Director, Leasing

  
	
   

  
	
   

  
	
  TENANT:

  
	
   

  
	
  OPTA CORPORATION, a Delaware corporation

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Sean Wang

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  COO

  
							

 

4

 

EXHIBIT A

 

OUTLINE AND LOCATION OF SUBSTITUTION SPACE

 

This Exhibit is attached to and made a part of
the Amendment
by and between CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a
Delaware limited partnership (“Landlord”) and OPTA
CORPORATION, a Delaware corporation (“Tenant”) for space in the
Building located at 1350 Old Bayshore Highway, Burlingame, California.

 

5

 

EXHIBIT B

 

SUBSTITUTION SPACE WORK LETTER

 

This Exhibit is attached to and made a part of
the Amendment
by and between CA-ONE BAY PLAZA LIMITED PARTNERSHIP, a
Delaware limited partnership (“Landlord”) and OPTA
CORPORATION, a Delaware corporation (“Tenant”) for space in the
Building located at 1350 Old Bayshore Highway, Burlingame, California.

 

As used in this Substitution Space Work
Letter, the “Premises” shall be
deemed to mean the Substitution Space, as defined in the attached Amendment.

 

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

 

SUBSTITUTION SPACE WORK LIST

 

ITEM

 

a.             Shampoo
carpets within the Premises.

 

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

 

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

 

4.             Tenant
acknowledges that the Substitution Space Landlord Work may be performed by
Landlord in the Premises during Building Service Hours subsequent to the Substitution
Effective Date. Landlord and
Tenant agree to cooperate with each other in order to enable the Substitution
Space Landlord Work to be performed in a timely manner and with as little
inconvenience to the operation of Tenant’s business as is reasonably possible.
Notwithstanding anything herein to the contrary, any delay in the completion of
the Substitution Space Landlord Work or inconvenience suffered by Tenant during
the performance of the Substitution Space Landlord Work shall not delay the Substitution Effective Date nor shall
it subject Landlord to any liability for any loss or damage resulting therefrom
or entitle Tenant to any credit, abatement or adjustment of Rent or other sums
payable under the Lease, as amended hereby.

 

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

 

6Exhibit 10.7

 

Executed

 

PARTICIPATION
AGREEMENT

 

THIS PARTICIPATION AGREEMENT (“Agreement”)
dated as of July     , 2005, is by and between WELLS FARGO BUSINESS CREDIT, INC., a
Minnesota corporation (“Lender”) and OPTA CORPORATION (formerly known as
LOTUS PACIFIC, INC.), a Delaware corporation (“Participant”).

 

WITNESSETH:

 

A.     Lender has
entered into financing arrangements with Borrower (as defined below) pursuant
to which Lender may, upon certain terms and conditions, make secured loans and
provide other financial accommodations to Borrower as set forth in the Credit
and Security Agreement dated July 21, 2003, by and between Lender and
Borrower, as amended by the First Amendment to Credit and Security Agreement
dated December 18, 2003, the Second Amendment to Credit and Security
Agreement dated February 11, 2004, the Third Amendment to Credit and
Security Agreement dated May 20, 2004, and as further amended by the “Forbearance
Agreement” dated November 1, 2004 (the “Forbearance Agreement”), the
letter agreement (the “3/9/05 Letter Agreement”) dated March 9, 2005, and
the First Amended Forbearance Agreement (the “7/22/05 Forbearance Agreement”)
dated July 22, 2005 (as the same now exists or may hereafter be amended,
modified, supplemented, extended, renewed or replaced, collectively, the “Loan
Agreement”); and

 

B.     Participant
unconditionally guaranteed repayment of all Obligations (as defined in the Loan
Agreement) owing from Borrower to Lender pursuant to the terms of the separate “Guaranty
by Corporation” dated as of July 16, 2003, that Participant signed and
delivered to Lender (the “Guaranty”); and

 

C.     Participant
acknowledges that Borrower is in material breach and default of its duties and
obligations under the Loan Agreement; and

 

D.     Notwithstanding
Borrower’s breaches and defaults, Participant wishes to acquire from Lender,
upon the terms and conditions hereinafter set forth, an undivided fractional
interest in all present and future loans and other financial accommodations
provided by Lender to Borrower under the Loan Agreement and, to the extent
necessary to repay the Participation (as hereinafter defined), an undivided
fractional interest in the Collateral.

 

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

 

1.                         Definitions

 

As used above and in this Agreement, the following
terms shall have the meanings ascribed to them below:

 

1.1    “Availability”
shall mean, at any time, the amount of the Revolving Advances and Letters of
Credit available to Borrower at such time based on the applicable advance
percentage multiplied by the value of eligible Collateral as set forth in the
Loan Agreement, as determined by Lender in its sole discretion, and subject to
the applicable sublimits and reserves established by Lender in its sole
discretion.

 

 

1.2    “Borrower”
shall mean OPTA SYSTEMS, LLC, a Delaware limited liability company, and its
successors and assigns, including, without limitation, a receiver,
administrator, custodian, liquidator, trustee or debtor-in-possession on behalf
of such person or on behalf of any such successor or assign.

 

1.3    “Collateral”
shall have the meaning set forth in the Loan Agreement.

 

1.4    “Collections”
shall mean all cash or other immediately available funds received by Lender for
application to the Obligations, whether as proceeds of Collateral or otherwise.

 

1.5    “Event
of Default” shall have the meaning set forth in the Loan Agreement.

 

1.6    “Financing
Agreements” shall mean, collectively, the Loan Agreement and all
agreements, documents and instruments at any time executed and/or delivered by
Borrower, any obligor or any other person with, to or in favor of Lender in
connection therewith or related thereto, as all of the foregoing now exist or
may hereafter be amended, modified, supplemented, extended, renewed, restated
or replaced.

 

1.7    “Letters
of Credit” shall have the meaning set forth in the Loan Agreement.

 

1.8    “Loans”
shall mean all Revolving Advances or other loans made by Lender to Borrower pursuant
to the Loan Agreement.

 

1.9    “Participation”
shall have the meaning set forth in Section 2.1 hereof.

 

1.10  “Participant
Commitment” shall mean $3,200,000.00.

 

1.11  “Participation
Percentage” shall mean Eighty percent (80%).

 

1.12  “Revolving
Advances” shall have the meaning set forth in the Loan Agreement.

 

1.13  “Settlement
Period” shall mean each week or such other period of time as the parties
may agree between settlements in respect of the Participation as provided in Section 3.3
hereof.

 

1.14  All capitalized
terms as used herein shall have the meanings given to such terms in the Loan
Agreement, unless otherwise defined herein. All references to Participant and
Lender pursuant to the definitions set forth above, or to any other person
herein, shall include their respective successors and assigns. All references
to any term in the plural shall include the singular and all references to any
term in the singular shall include the plural. For purposes of this Agreement,
all references to the pro rata share of Participant herein shall be determined
based on the Participation Percentage.

 

2

 

2.                         Purchase
and Sale of Participation

 

2.1    Lender
hereby agrees to sell to Participant and Participant hereby unconditionally and
irrevocably agrees to purchase from Lender an undivided fractional interest in
all present and future Loans made from time to time by Lender to Borrower equal
to the Participation Percentage, but in no event to exceed the Participant
Commitment at any time outstanding. Participant hereby assumes its pro rata
share of all commitments and obligations of Lender under the Financing
Agreements or otherwise in connection with the Loans and Letters of Credit.
Such interests of Participant in the Loans and Letters of Credit provided for
in this Section 2.1 are referred to herein as the “Participation.”
Participant shall participate in the Collections and the Collateral, but only
to the extent necessary to earn interest (or other compensation, if any) as provided
below and to be repaid principal to the extent of the Participation.

 

2.2    The
relationship between Lender and Participant under this Agreement is and shall
be that of a seller and purchaser of an undivided fractional interest, not a
debtor-creditor relationship. Lender has not guaranteed repayment to
Participant of, nor agreed to repurchase from Participant, any portion of the
Participation at any time. Lender does not assume and shall not have any
liability to Participant for the repayment of monies paid hereunder by
Participant to Lender on account of the purchase of the Participation or
interest thereon (or other compensation, if any). Nothing contained herein
shall confer upon Lender or Participant any interest in, or subject either of
them to any liability for, or in respect of, the business, assets, profits,
losses or liabilities of the other, except only as to the Participation.

 

2.3    Participant
shall pay Lender the amount of the Participant Commitment in immediately
available U.S. funds no later than July 26, 2005. An amount equal to
eighty percent (80%) of the outstanding Revolving Advances shall constitute the
purchase price for the Participation and belong to Lender and the balance (if
any) of the Participant Commitment shall be deposited by Lender into a
segregated non-interest bearing account belonging to Participant (the “Loan
Funding Account”) for use by Lender in funding Participant’s share of any
future Revolving Advances to be made under the Loan Agreement during the
Forbearance Period (as defined in the 7/22/05 Forbearance Agreement).
Furthermore, Participant shall deposit with Lender (no later than July 26,
2005) immediately available U.S. funds in the amount of $800,000.00 (the “Cash
Collateral”) which will be held in a segregated non-interest bearing account
and serve as additional collateral for repayment of the Obligations owing to
Lender under the Loan Agreement and the Guaranty. Participant hereby grants to
Lender a first-priority lien and security interest in the Cash Collateral.
Contemporaneously with and only upon Participant’s execution of this Agreement
payment by Participant to Lender of the Participant Commitment and the Cash
Collateral, Lender will release its Lien on the Collateral that constitutes
Intellectual Property Rights. Participant shall pay Lender a fee (the “Servicing
Fee”) for administering the Loans in an amount equal to one-half of one percent
(.5%) of the average daily amount of Revolving Advances outstanding under the
Loan Agreement. The Servicing Fee shall be payable monthly (for all or any
portion of a month) upon demand by Lender. Furthermore, Participant shall, upon
request by Lender, reimburse Lender for all of Lender’s costs and expenses (including attorneys’
fees) incurred in relation to the negotiation and documentation of this
Agreement and the transactions contemplated by this Agreement.

 

3

 

2.4    Participant shall be deemed to have purchased its Participation
to each Loan on the date such Loan is made, but Participant’s right to receive
its share of any interest paid in respect thereof shall accrue from the date
Lender receives immediately available funds from Participant for its
Participation Percentage in such Loan.

 

2.5    Nothing contained in this Agreement and no action taken by Lender
with respect to the Loan Agreement or this Agreement shall impair, limit,
release, discharge, alter, amend or modify the duties, obligations and
liabilities of Participant under the Guaranty.

 

3.                         Administration

 

3.1    The Obligations, the Collateral, and the Collections shall be
held by Lender in Lender’s name, but, to the extent of the Participation, as
agent for Participant solely as to Participant’s share of Collections received
by Lender and subject to Participant’s rights with respect thereto as set forth
herein. Except with respect to Participant’s pro rata share of Collections
actually received and retained by Lender, Lender shall not be an agent or
trustee for Participant in administering or servicing the Financing Agreements,
nor with respect to any rights, remedies or benefits thereunder, including
making the Loans, providing Letters of Credit, the perfection of security
interests and other liens in the Collateral, attempts to effect Collections,
execution of agreements in connection therewith, or the exercise of any other
rights and remedies of a lender or secured party with respect thereto. Lender
shall not be deemed a fiduciary for Participant.

 

3.2    Lender shall have the right to carry out the provisions of the
Financing Agreements with Borrower, and to exercise all rights and privileges
accruing to it by reason of the provisions thereof, and to enforce its rights
thereunder for the joint benefit of Lender and Participant, according to Lender’s
discretion and the exercise of its business judgment, in accordance with its
normal operating procedures. Lender will use normal prudence and judgment in
the servicing of the arrangements of Lender with Borrower and to the carrying
out of the terms of the Financing Agreements. Except as otherwise specifically
provided herein, Lender shall have the right to agree to amendments,
modifications, waivers or releases of Borrower, and with respect to any
provision of the Financing Agreements or any rights of Lender in and to any Collateral
or to consent to any action or failure to act by Borrower. Lender shall not
have any liability to Participant with respect to any action taken or omitted
by Lender, its employees or agents, in connection with the Financing Agreements
or for any error in judgment, except for its own gross negligence or willful
misconduct. Lender does not assume, and shall not have, any responsibility or
liability, express or implied, for the enforceability or collectability of the
Financing Agreements, the Collateral or the condition of Borrower, financial or
otherwise, or the Collateral, or for the accuracy of any credit or other
information furnished by or on behalf of Borrower, unless Lender has acted with
gross negligence or willful misconduct.

 

3.3    Lender shall transmit to Participant after the end of each
Settlement Period a statement of the account of Borrower with Lender
summarizing the Loans, the status of the

 

4

 

Collateral and the Collections received by Lender during such preceding
Settlement Period. The statement of account for such Settlement Period shall
state the net loan balance and Collateral balance with Borrower, and the net
amount either due from Lender to Participant or the net amount due from Participant
to Lender, as the case may be, and the balance in the Loan Funding Account both
before and after the credit or debit, as the case may be, to such Account on
account of Revolving Advances made or repaid during such Settlement Period. Any
sums due from Lender to Participant on account of the net amount of the
principal amount of Revolving Advances repaid in excess of the principal amount
of Revolving Advances made during such Settlement Period shall be paid by
crediting such Account. Any sums due from Participant to Lender on account of
the net amount of the principal amount of Revolving Advances made in excess of
Revolving Advances repaid during such Settlement Period shall be paid by
debiting such Account. Any sums due from Participant to Lender will be paid
within five (5) business days of demand made by Lender. In the event that
Participant fails to purchase and pay for the Participation as required
pursuant to this Agreement or otherwise defaults in its obligations to Lender
under this Agreement, Participant shall pay all costs and expenses of every
kind incurred by Lender for collection or enforcement of same, including
attorneys’ fees and legal expenses. So long as Participant shall be in default
of any of its obligations hereunder or under the Guaranty and any amount of
obligations shall be due and owing, Participant shall not be entitled to any
payments pursuant to the settlement provided for in this Section 3.3 or other payments pursuant to Section 4
below, or to any right to approve any amendments or waivers as provided herein.
Any amounts so withheld from Participant will be applied to the amounts owing
by Participant. Lender’s books and records showing the account between Lender
and Borrower and statements of account rendered to Participant shall be
considered accurate unless objected to by Participant in writing within fifteen
(15) days from their date.

 

3.4    Lender
will deliver to Participant on or about the tenth (10th) day of each calendar
month, a copy of the monthly statement of account with Borrower for the
preceding calendar month.

 

3.5    In the
event of the liquidation of the Collateral, all costs and expenses of
collection of the Loans and/or disposition or realization upon the Collateral,
including, without limitation, attorneys’ fees and expenses, shall constitute a
part of the Loans by Lender to Borrower under this Agreement and shall be borne
by Lender and Participant pro rata in accordance with their respective
interests in the Loans hereunder. In the event of liquidation, all Collections thereafter
received shall be applied as follows: (a) first, to the payment in full of
the expenses of the collection and enforcement of the Obligations and for the
protection, preservation, maintenance or sale, disposition or other realization
upon any of the Collateral, including all reasonable expenses, liabilities and
advances incurred or made by Lender in connection therewith (including
attorneys’ fees and legal expenses); (b) second, to the payment of
interest, fees and indemnities payable by Borrower under the Financing
Agreements; and (c) third, to the payment in full of all other Obligations
(and in the case of Letters of Credit, to be held as cash collateral) in such
amounts, order and manner as Lender may determine.

 

3.6    Lender may
(with or without Participant’s consent) modify, alter or amend any provision of
the Financing Agreements or waive or release any rights against Borrower.
Furthermore, Lender may release any Collateral without the consent of
Participant: (i) upon the termination of the Loan Agreement and payment
and satisfaction in full by Borrower of all

 

5

 

Loans and the delivery of cash collateral in respect of Letters of
Credit, (ii) constituting property being sold or disposed of by Borrower
in connection with any sale or other disposition permitted under the Loan
Agreement, (iii) constituting property in which Borrower owned no interest
at the time the security interest was granted or at any time thereafter, (iv) constituting
property leased to Borrower under a lease which has expired or been terminated
in a transaction permitted under the Loan Agreement or (v) upon the sale
or other disposition of any Collateral which in the good faith determination of
Lender is not material or otherwise in connection with the liquidation by
Lender of the Collateral.

 

3.7    Except as
otherwise provided in Section 3.8 below, Lender shall not, intentionally
and with actual knowledge, make Revolving Advances to Borrower that would cause
the aggregate principal amount of the outstanding Revolving Advances to exceed
the Availability as of the date of such Revolving Advances, without Participant’s
consent, except that:

 

(a)         in
the event Lender obtains actual knowledge that the outstanding Revolving
Advances exceeds the Availability, Lender shall use all reasonable efforts to
make arrangements with Borrower, acceptable to Lender, intended to eliminate
such excess amounts within a reasonable time;

 

(b)        Lender
may, from time to time, make Revolving Advances with actual knowledge that such
Revolving Advances will cause the total outstanding Revolving Advances to
exceed the Availability at such time by an amount up to ten percent (10%) of
such Availability, provided, that, as of the date of the first such Revolving
Advances, Lender has made arrangements with the Borrower intended to eliminate
such excess amounts within a reasonable time.

 

3.8    Lender
may, from time to time, at its option, intentionally and with actual knowledge,
make Revolving Advances in excess of the Availability at such time by more than
ten percent (10%) of such Availability or make Revolving Advances in excess of
the Maximum Line, but such Revolving Advances shall be for the sole account of
Lender, except as Lender and Participant may otherwise agree. Any such
Revolving Advances made by Lender intentionally and with actual knowledge that
cause the total outstanding Revolving Advances to exceed the Availability at
such time by more than ten percent (10%) or the Maximum Line, as the case may
be, shall be prior in right of payment to all other Revolving Advances, such
that any Collections shall be applied first to the Revolving Advances which
exceed the Availability and thereafter to the balance of the Revolving
Advances.

 

3.9    In the
event that at any time, whether before or after the termination of this
Agreement, there shall be any claim, action, suit or proceeding of any kind,
arising directly or indirectly out of the financing arrangements between Lender
and Borrower under or in relation to the Financing Agreements or otherwise,
including, without limitation, any action brought against Lender by Borrower,
or by any other person claiming by, through or under Borrower, to recover
damages for any act taken or omitted by Lender under the Financing Agreements or
in pursuing any rights or remedies of Lender against Borrower, any account
debtors of Borrower, or for recovery or return of payments or Collateral or
proceeds thereof received by Lender, then Participant shall be required to pay
to Lender its pro rata share of such amount as Lender shall be

 

6

 

required to pay by reason of a judgment, final decree, or other order,
entered in connection with any such claim, action, suit or proceeding or by
reason of any compromise or settlement agreed to by Lender, including, without
limitation, all interest and costs assessed against or incurred by Lender in
defending or compromising such action. Lender shall notify Participant of the
commencement against Lender of any such claim, action, suit or proceeding which
Lender, in good faith, believes may result in a material judgment against
Lender; provided, that, the failure to give such notice shall not entitle
Participant to any greater rights or reduce Participant’s obligations with
respect to such claim, action, suit or proceeding or otherwise than if Lender
did not herein specifically obligate itself to give such notice to Participant.
Participant shall not, under the terms of this Section 3.9 or otherwise
have any obligation or liability to Lender in the case of Lender’s own gross
negligence or willful misconduct.

 

3.10  If Borrower
becomes subject to a case under the U.S. Bankruptcy Code and if Lender desires
to permit the use of cash collateral or to provide financing to Borrower under
either Section 363 or Section 364 of the U.S. Bankruptcy Code, Lender
may, in its discretion, continue to make Loans and provide Letters of Credit
after the commencement and during the continuation of such case and such Loans
and Letters of Credit shall be subject to the Participation and the terms
hereof. Notwithstanding anything to the contrary contained in Section 3.6
hereof, the consent of Participant to any amendments or waivers with respect to
the Financing Agreements in connection therewith shall not be required to the
extent such amendments make the terms of the Financing Agreements more
favorable or such amendments or waivers are required as a result of the
commencement of the case of Borrower under the U.S. Bankruptcy Code.

 

4.                         Compensation

 

4.1    Lender
agrees to accrue and account to Participant on or about the tenth (10th) day of
each calendar month, the interest due Participant in respect of the
Participation during the previous calendar month. Participant shall accrue
interest in respect of the closing daily balances in the Borrower’s loan
account for each day during the immediately preceding calendar month as such
interest is earned and actually received by Lender from Borrower pursuant to
the terms of the Financing Agreements, to the extent of the actual amounts
funded in respect thereof by Participant pursuant to the Participation, at a
rate equal to the interest rate payable to Lender under the terms of the
Financing Agreements and in the event Lender exercises its option to receive
the higher rate of interest provided for in the Loan Agreement after an Event
of Default then at such higher rate. Any amount accrued and payable in respect
of interest to Participant hereunder shall bear interest at the Base Rate and
shall be calculated and payable monthly in arrears and shall be calculated on
the basis of a three hundred sixty (360) day year based on actual days elapsed.
The interest rate shall increase or decrease by an amount equal to each
increase or decrease in the Base Rate, effective on the effective date of any
such change. All accrued interest and any other sums owing to Participant will
be paid within five (5) business days following the end of the Forbearance
Period under the 7/22/05 Forbearance Agreement.

 

4.2    The
interest earned and due Participant in respect of the Loans as set forth above
shall be the sole compensation to Participant. Without limiting the foregoing,
in no event shall Participant be entitled to any compensation in the form of
any unused line fee, any letter of credit fee, any forbearance fee, any
termination fee, or any other fee paid by Borrower to Lender pursuant to the
Loan Agreement.

 

7

 

5.                         Credit
Decision: Independent Investigation

 

5.1    Lender
makes no representation or warranty (express or implied) and shall have no
responsibility, as to the validity, value, enforceability or collectability of
the Participation or the Obligations, the Financing Agreements, or as to the
title to, validity, priority, value, perfection or sufficiency of the
Collateral, or any other guarantees or collateral of any kind, or as to the
financial condition of Borrower or any account debtors. Participant has
conducted its own independent investigation as to the business and financial condition
of Borrower, and is thoroughly familiar with, and has complete and current
information concerning the financial condition and creditworthiness of Borrower
and the Collateral. Participant has, independently and without reliance upon
Lender and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Participant has not in any way relied on Lender or any of its
employees in purchasing the Participation. Participant agrees that it will,
independently and without reliance upon Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis and decisions with respect to the Participation sold and transferred
to it pursuant to this Agreement.

 

5.2    Participant
acknowledges that it has received and reviewed or had the opportunity to
receive and review copies of the Financing Agreements and such financial data
or other information concerning Borrower or the Collateral existing on the date
hereof as Participant has requested from Borrower or Lender.

 

5.3    Participant
acknowledges that Borrower is in material breach and default of its duties and
obligations under the Loan Agreement.

 

6.        Miscellaneous.

 

6.1    Successors
and Assigns. This Agreement shall be binding upon the parties hereto and
their respective successors and assigns and shall inure to the benefit of
parties and their respective successors, participants and assigns. Participant
shall not sell, pledge, assign, sub-participate or otherwise transfer its
rights under this Agreement, without the prior written consent of Lender.

 

6.2    Notices.
All notices, requests and demands to or upon the respective parties hereto
shall be in writing and shall be deemed duly given, made or received: if
delivered in person, immediately upon delivery; if by telex, telegram or
facsimile transmission, immediately upon sending and upon confirmation of
receipt; if by nationally recognized overnight courier service with instructions
to deliver the next Banking Day, one (1) Banking Day after sending; and if
mailed by certified mail, return receipt requested, five (5) days after
mailing to the parties at their addresses set forth below (or to such other
addresses as the parties may designate in accordance with the provisions of
this Section):

 

8

 

To Lender:     Wells
Fargo Business Credit, Inc.

Attn: Darcy Della Flora

100 W. Washington Street, 15th Floor 

MAC S4101-158 

Phoenix, Arizona 85003 

Telephone: (602) 378-2469 

Telefax: (602) 378-6215

with a copy to:

John R. Clemency, Esq. 

Greenberg Traurig, LLP

2375 East Camelback Road, Suite 700 

Phoenix, Arizona 85016 

Telephone: (602) 445-8575 

Telefax: (602) 445-8680

 

To Participant:                  Opta Corporation

1350 Old Bayshore Highway, Suite 740 

Burlingame, California 94010 

Attn: Sean Wang, COO 

Telephone: (949) 475-1880 

Telefax: (949) 475-1808

 

with a copy to:

 

John M. Iino

Reed Smith LLP

1901 Avenue of the Stars, Suite 700

Los Angeles, CA 90067

Telephone: (310) 734-5251

Telefax: (310) 734-5299

 

Lender or Participant may change the address to which all notices,
requests and other communications are to be sent to it by giving written notice
of such address change to the other party in conformity with this Section 6.2,
but such change shall not be effective until notice of such change has been
received by the other party.

 

6.3    Payment
Returns. If any payment received by Lender from Borrower and distributed or
credited in whole or in part to Participant is later rescinded or is otherwise
returned by Lender for whatever reason (including, without limitation,
settlement of an alleged claim or the voiding of such payment as a preference),
Participant, upon demand by Lender, shall immediately pay to Lender the amount
received by Participant in respect of the amounts so returned. This covenant
shall survive the termination of this Agreement.

 

6.4    Other Transactions. Each of Lender and Participant
confirms that it has no loans or financing transactions with Borrower, except
those transactions which are the subject of this Agreement and the Financing
Agreements or have been disclosed in writing to the other

 

9

 

party and each agrees not to, enter into any other financing
arrangement with Borrower without notifying the other party hereto.

 

6.5    Insolvency.
Participant will have no standing with respect to the Participation in any
proceeding under the U.S. Bankruptcy Code, any state insolvency laws or which
otherwise involve Borrower, and no claim, dispute, accounting or other issue
pertaining to Participant’s relationship with Lender under this Agreement shall
be heard or disposed of in any such proceeding relating to Borrower.

 

6.6    Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be
an original with the same force and effect as if the signatures thereto and
hereto were upon the same instrument.

 

6.7    Governing
Law. The validity, construction and effect of this Agreement shall be
governed by the internal laws of the State of Arizona (applicable to contracts
made and performed in such State).

 

6.8    Consent
to Jurisdiction; Waiver of Jury Trial. Lender and Participant each hereby
waive trial by jury to any action or proceeding arising out of or in connection
with this Agreement and further hereby waive any right of offset or right to
interpose any counterclaim (other than compulsory counterclaims) in any such
action. Each of the parties hereto expressly submits in advance to the exclusive
jurisdiction of the state and federal courts located in Maricopa County,
Arizona in any action or proceeding relating to any claim, dispute or other
matter pertaining directly or indirectly to this Agreement.

 

6.9    Complete
Agreement. This written Agreement is intended by the parties as a final
expression of their agreement and is intended as a complete statement of the
terms and conditions of their agreement.

 

6.10  No Third
Parties Benefited. Except as expressly provided in Section 7.1, this
Agreement is solely for the benefit of Lender and Participant and their
respective successors, participants and assigns, and no other person shall have
any right, benefit, priority or interest under, or because of the existence of,
this Agreement.

 

6.11  Certain Notices
to Participant. Notwithstanding any other provision of this Agreement.
Lender shall not except after
three (3) days’ prior written notice to Participant (except to the extent that Participant
shall consent in writing to a shorter notice period) commence foreclosure or
other remedial action against Borrower or any Collateral.

 

7.                         Term

 

7.1    Participant
may not terminate this Agreement.

 

7.2    This
Agreement shall continue in full force and effect until the earlier of the date
on which (i) Lender has received final payment in full of all of the
Obligations and cash collateral for any contingent Obligations in amounts and
on terms acceptable to Lender, and (ii) Participant has received final
payment in full of the Participation, together with its share of interest as
provided in this Agreement.

 

10

 

7.3    Termination
of this Agreement (in accordance with this Agreement) shall not affect the
respective rights or obligations hereunder incurred prior to the effective date
of such termination including obligations to participate in post-termination
Loans or Letters of Credit in the event of liquidation to the extent provided
in this Agreement.

 

7.4    Participant
agrees that a default by Participant under this Agreement shall constitute a
default under the Guaranty and a default under the Guaranty shall constitute a
default under this Agreement.

 

7.5    Any
failure for any reason on the part of Borrower to comply with the terms and
conditions of the 7/22/05 Forbearance Agreement between Borrower and Lender,
including, without limitation, Borrower’s failure to satisfy, pay and discharge
all of the Obligations upon the expiration of the Forbearance Period (as
defined in the 7/22/05 Forbearance Agreement), shall constitute a default by
Participant under this Agreement.

 

11

 

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

 

	
   

  	
  WELLS
  FARGO BUSINESS CREDIT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  

  	
   

  
	
   

  	
  Name:
  Darcy Della Flora

  Its: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OPTA
  CORPORATION (formerly known as

  LOTUS PACIFIC, INC.), a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  

  	
   

  
	
   

  	
  Name:
  Sean Wang

  Its: COO

  

 

12

 

Exhibit A

To Second Amendment to

Forbearance Agreement

 

AMENDMENT

TO

PARTICIPATION AGREEMENT

 

THIS AMENDMENT TO PARTICIPATION AGREEMENT (“Participation
Amendment”) dated as of August 25, 2005, is by and between WELLS FARGO
BUSINESS CREDIT, a division of Wells Fargo Bank, NA (“Lender”) and OPTA
CORPORATION (formerly known as LOTUS PACIFIC, INC.), a Delaware corporation (“Participant”).

 

W
I  T  N  E  S  S  E  T  H:

 

A.        Lender
has entered into financing arrangements with Borrower (as defined below)
pursuant to which Lender may, upon certain terms and conditions, make secured
loans and provide other financial accommodations to Borrower as set forth in
the Credit and Security Agreement dated July 21, 2003, by and between
Lender and Borrower, as amended by the First Amendment to Credit and Security
Agreement dated December 18, 2003, the Second Amendment to Credit and
Security Agreement dated February 11, 2004, the Third Amendment to Credit
and Security Agreement dated May 20, 2004, and as further amended by the “Forbearance
Agreement” dated November 1, 2004 (the “Forbearance Agreement”),
several letter agreements, including the letter agreement (the “3/9/05
Letter Agreement”) dated March 9, 2005, the First Amended Forbearance
Agreement (the “7/22/05 Forbearance Agreement”) dated July 22,
2005, and the letter agreement (the “7/26/05 Letter Agreement”) dated July 26,
2005 (as the same now exists or may hereafter be amended, modified,
supplemented, extended, renewed or replaced, collectively, the “Loan
Agreement”); and

 

B.         Concurrently
with the execution and delivery of this Participation Amendment, Borrower and
Lender are executing and delivering a Second Amended Forbearance Agreement (the
“Second Amendment”) for the purpose of increasing the Maximum Line (as
defined in the Loan Agreement) from $4,000,000 to $6,000,000 as requested by
Borrower; and

 

C.         Participant
acknowledges that Borrower was on July 22, 2005 and continues to be in
material breach and default of its duties and obligations under the Loan
Agreement; and

 

D.        Notwithstanding
Borrower’s breaches and defaults, Participant has acquired from Lender, upon
the terms and conditions set forth in a Participation Agreement dated July 26,
2005 (the “Participation Agreement”), an undivided fractional interest
in all present and future loans and other financial accommodations provided by
Lender to Borrower under the Loan Agreement and, to the extent necessary to
repay the Participation, an undivided fractional interest in the Collateral;
and

 

E.         Notwithstanding
Borrower’s breaches and defaults, Participant wishes to increase such undivided
fractional interest upon the terms and conditions hereinafter set forth; and

 

F.         Participant
acknowledges and confirms its unconditional guaranty of repayment of up to
$5,000,000 of the Obligations from Borrower to Lender pursuant to the terms of
the separate “Guaranty by Corporation” dated as of July 16, 2003, that
Participant signed and delivered to Lender (the “Guaranty”); and

 

G.         In
addition to terms defined in this Participation Amendment, capitalized terms
used herein shall have the meanings ascribed to them in the Participation
Agreement.

 

1

 

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

 

1.         Amendments.

 

(a)    The
Participant Commitment is hereby temporarily increased from $3,200,000 to
$5,200,000 by restating Section 1.10 of the Participation Agreement to
read as follows:

 

1.10   “Participant Commitment” shall
mean (i) $5,200,000 for the period from and including August 25, 2005
to and including September 30, 2005, at which time the Maximum Line under
the Loan Agreement is reduced to an amount not greater than $4,000,000, and (ii) $3,200,000
at all other times.

 

(b)    The
Participation Percentage is hereby temporarily increased from 80% to 86.66667%
by restating Section 1.11 of the Participation Agreement to read as
follows:

 

1.11   “Participation Percentage” shall
mean (i) 86.66667% for the period from and including August 25, 2005
to and including September 30, 2005, at which time the Maximum Line under
the Loan Agreement is reduced to an amount not greater than $4,000,000, and (ii) 80%
at all other times.

 

2.         Purchase
and Sale of Increase in Participation.

 

(a)    Participant
shall pay to the Lender $2,000,000, the amount of the increase in the
Participant Commitment, in immediately available U.S. funds no later than August 25,
2005. A portion thereof, in the amount of 6.66667% of the Revolving Advances
outstanding at the opening of business on such date, shall constitute the
purchase price for the increased Participation in such Revolving Advances and
belong to Lender and the balance of such $2,000,000 shall be deposited by
Lender into the Loan Funding Account (as defined in the Participation
Agreement) for use by Lender in funding Participant’s share of additional
Revolving Advances to be made under the Loan Agreement, including Revolving
Advances to be made on August 25, 2005.

 

(b)    On the
first date on which the Maximum Line under the Loan Agreement is reduced to an
amount not greater than $4,000,000 and the amount of Revolving Advances
outstanding is not greater than $4,000,000 Lender shall pay to Participant
$2,000,000 in immediately available funds from the Loan Funding Account. To the
extent necessary, Lender will pay Participant from Lender’s own funds an amount
equal to 6.66667% of the then outstanding Revolving Advances to reconcile the
return of the Participation Interest to 80% of the Loans.

 

3.         Counterparts.
This Agreement may be executed in any number of counterparts, each of which
shall be an original with the same force and effect as if the signatures
thereto and hereto were upon the same instrument.

 

4.         Governing
Law. The validity, construction and effect of this Agreement shall be
governed by the internal laws of the State of Arizona (applicable to contracts
made and performed in such State).

 

5.         Second
Amended Forbearance Agreement. Participant hereby acknowledges receipt of a
copy of the Second Amendment and consents to the terms thereof.

 

2

 

6.         Continued
Effect of Participation Agreement. Except as otherwise provided herein, all
terms of the Participation Agreement shall remain in full force and effect.

 

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

 

	
   

  	
  WELLS FARGO BUSINESS CREDIT, a

  division of Wells Fargo Bank, NA

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  

  
	
   

  	
  Name: Darcy Della Flora

  
	
   

  	
  Its: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OPTA CORPORATION (formerly known as

  LOTUS PACIFIC, INC.), a Delaware

  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  

  
	
   

  	
  Name: Sean Wang

  
	
   

  	
  Its: COO

  

 

3

 

Exhibit A

To Third Amendment to

Forbearance Agreement

 

SECOND AMENDMENT

TO

PARTICIPATION AGREEMENT

 

THIS SECOND AMENDMENT TO
PARTICIPATION AGREEMENT (“Second Participation Amendment”) dated as of October 13,
2005, is by and between WELLS FARGO BUSINESS CREDIT, a division of Wells Fargo
Bank, NA (“Lender”) and OPTA CORPORATION (formerly known as LOTUS PACIFIC,
INC.), a Delaware corporation (“Participant”).

 

W
I  T  N  E  S  S  E  T  H:

 

A.        Lender has entered into financing arrangements with Borrower
(as defined below) pursuant to which Lender may, upon certain terms and
conditions, make secured loans and provide other financial accommodations to
Borrower as set forth in the Credit and Security Agreement dated July 21,
2003, by and between Lender and Borrower, as amended by the First Amendment to
Credit and Security Agreement dated December 18, 2003, the Second Amendment
to Credit and Security Agreement dated February 11, 2004, the Third
Amendment to Credit and Security Agreement dated May 20, 2004, and as
further amended by the “Forbearance Agreement” dated November 1, 2004 (the
“Forbearance Agreement”), several letter agreements, including the
letter agreement (the “3/9/05 Letter Agreement”) dated March 9,
2005, the First Amended Forbearance Agreement (the “7/22/05 Forbearance
Agreement”) dated July 22, 2005, the letter agreement (the “7/26/05
Letter Agreement”) dated July 26, 2005, and the Second Amended
Forbearance Agreement (the “8/25/05 Forbearance Agreement”) dated August 25,
2005 (as the same now exists or may hereafter be amended, modified,
supplemented, extended, renewed or replaced, collectively, the “Loan Agreement”);
and

 

B.         Concurrently with the execution and delivery of this Second
Participation Amendment, Borrower and Lender are executing and delivering a
Third Amended Forbearance Agreement (the “Third Amendment”) for the
purpose of providing Borrower additional accommodations, including (among other
things) an extension of the Forbearance Period and the provision of $2,000,000
in Overline Advances under the Credit Facility as provided in the Third
Amendment; and

 

C.         Participant acknowledges that Borrower was on July 22,
2005 and continues to be in material breach and default of its duties and
obligations under the Loan Agreement; and

 

D.        Notwithstanding Borrower’s breaches and defaults, Participant
has acquired from Lender, upon the terms and conditions set forth in a
Participation Agreement dated July 26, 2005 (the “Participation
Agreement”), an undivided fractional interest in all present and future
loans and other financial accommodations provided by Lender to Borrower under
the Loan Agreement and, to the extent necessary to repay the Participation, an
undivided fractional interest in the Collateral; and

 

E.         Notwithstanding Borrower’s breaches and defaults,
Participant wishes to increase its Participation Commitment to include the
Overline Advances upon the terms and conditions hereinafter set forth; and

 

F.         Participant acknowledges and confirms its unconditional
guaranty of repayment of up to $5,000,000 of the Obligations from Borrower to
Lender pursuant to the terms of the

 

 

separate “Guaranty by Corporation” dated as
of July 16, 2003, that Participant signed and delivered to Lender (the “Guaranty”);
and

 

G.         In addition to terms defined in this Participation
Amendment, capitalized terms used herein shall have the meanings ascribed to
them in the Participation Agreement and in the Third Amendment.

 

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

 

1.         Amendments.
(a)  The Participation Commitment is hereby amended by restating Section 1.10
of the Participation
Agreement to provide as follows:

 

1.10          “Participation Commitment” shall mean (i) $3,200,000
with respect to Revolving Advances that are not Overline Advances; and (ii) $2,000,000 with respect to Overline Advances.

 

(b)            The Participation Percentage is hereby amended by
restating Section 1.11 of the Participation Agreement to provide as
follows:

 

1.11          “Participation Percentage” shall mean (i) 80% with
respect to Revolving Advances that are not Overline Advances; and (ii) 100%
with respect to Overline Advances.

 

2.         Purchase and Sale of Participation in Overline Advances.
On deposit in the Loan Funding Account is $2,000,000 that is available for
return to Participant under the terms of the “Amendment to Participation
Agreement” dated as of August 25, 2005 (the “$2MM LFA Funds”). In lieu
of obtaining a return of the $2MM LFA Funds, Participant will keep the $2MM LFA
Funds on deposit in the Loan Funding Account for use in acquiring and funding
the Overline Advances. Lender will make Overline Advances only to the extent
that the $2MM LFA Funds remain in the Loan Funding Account. Servicing Fee.
The Servicing Fee owed to Lender will be assessed against Overline Advances
made under the Credit Facility in accordance with the Third Amendment.

 

4.         Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be an original with the same force
and effect as if the signatures thereto and hereto were upon the same
instrument. Governing Law. The validity, construction and effect of this
Agreement shall be governed by the internal laws of the State of Arizona
(applicable to contracts made and performed in such State). Third Amended
Forbearance Agreement. Participant hereby acknowledges receipt of a copy of
the Third Amendment and consents to the terms thereof. Continued Effect of
Participation Agreement. Except as otherwise provided herein, all terms of
the Participation Agreement shall remain in full force and effect. IN WITNESS
WHEREOF, the parties have executed this Participation Amendment as of the day
and year first written above.

 

2

 

	
   

  	
  WELLS FARGO BUSINESS CREDIT, a

  division of Wells Fargo Bank, NA

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  

  
	
   

  	
  Name: Darcy Della Flora

  
	
   

  	
  Its: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OPTA CORPORATION (formerly known as

  LOTUS PACIFIC, INC.), a Delaware

  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  

  
	
   

  	
  Name: 

  	
  Tom
  Gong

  
	
   

  	
  Its: 

  	
  CFO &
  Controller

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED AND ACCEPTED this

  	
   

  
	
  13th day of October, 2005:

  	
   

  
	
   

  	
   

  
	
  OPTA SYSTEMS, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  

  	
   

  	
   

  
	
  Name:

  	
  Chris
  Porter

  	
   

  	
   

  
	
  Its:

  	
  Senior
  Vice President

  	
   

  	
   

  
											

 

3

 

Opta Corporation

1350 Old Bayshore Highway, Suite 600,
Burlingame, CA 94010

Tel. (650) 579-3610·Fax (650) 579-3606

 

 

December 22, 2005

 

Wells Fargo Business Credit, a

Division of Wells Fargo Bank, NA

Attn:  Darcy Della Flora

100 W. Washington Street, 15th Floor

MAC S4101-158

Phoenix, Arizona  85003

 

Ladies and Gentlemen:

 

Reference is hereby made to: (i) the “Third Amended Forbearance
Agreement” (the “Agreement”), effective as of October 13, 2005 (the “Third
Forbearance Agreement”), by and between Wells Fargo Business Credit, a division
of Wells Fargo Bank, NA (“Lender”) and Opta Systems, LLC (“Borrower”); and (ii) the
“Second Amendment To Participation Agreement” dated as of October 13,
2005 (the “Second Amended Participation Agreement”) between Lender and Opta
Corporation (formerly known as Lotus Pacific, Inc., “Participant” or “Guarantor”).  Unless otherwise indicated, capitalized terms
used in this Letter Agreement will correspond to the capitalized terms used in
the Third Forbearance Agreement and in the Second Amended Participation
Agreement.  Through their execution of
the attached Consent, the Guarantor and Subordinated Creditors agree to the
amendments of the Third Amended Forbearance Agreement and the Second Amended
Participation Agreement that are outlined below.

 

Borrower and Participant understand that Lender is willing to agree to
amend the Third Amended Forbearance Agreement and the Second Amended
Participation Agreement as follows:

 

1.             The amount of the
Overline Advances under the §2(b) of the Third Amended Forbearance
Agreement is increased from $2,000,000 to $2,400,000.

 

2.             The amount of the
Participation Commitment under §1(a) of the Second Amended Participation
Agreement (and §1.10 of the Participation Agreement) related to Overline
Advances is increased from $2,000,000 to $2,400,000.

 

3.             Participant will
deposit into the Loan Funding Account funds necessary to for the increased
amount of the Overline Advances under the Third Amended Forbearance Agreement
and the Second Amended Participation Agreement (as amended by this Letter
Agreement).

 

All other terms and conditions of the Third Amended Forbearance
Agreement and the Second Amended Participation Agreement remain in full force
and effect.  Please provide in the space
below the signature of a duly authorized representative of Lender to indicate
Lender’s agreement and consent to the above-referenced amendments to the Third
Amended Forbearance Agreement

 

 

and the Second Amended Participation Agreement.

 

	
   

  	
   

  	
   

  	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
   

  	
  OPTA SYSTEMS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chris Porter

  	
   

  
	
   

  	
  Its:   Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OPTA CORPORATION (formerly known

  as Lotus Pacific, Inc.), a Delaware

  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Tom Gong

  	
   

  
	
   

  	
  Title:  
  Controller

  
	
   

  	
   

  
	
  Agreed and consented to:

  	
   

  
	
   

  	
   

  
	
  WELLS FARGO BUSINESS CREDIT

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Darcy Della Flora

  	
   

  	
   

  
	
  Its:  Vice President

  	
   

  
												

 

2

 

CONSENT AND AGREEMENT OF GUARANTOR AND SUBORDINATED

CREDITORS

 

With respect to the “Letter Agreement”
dated as of December 16, 2005 (the “Agreement”) between:  (i) Wells Fargo Business Credit, a
division of Wells Fargo Bank, NA and (ii) OPTA SYSTEMS, LLC., the
undersigned agree for the benefit of Lender as follows:

 

1.             Unless otherwise indicated,
capitalized terms used in this Consent and Agreement of Guarantor and
Subordinated Creditors (“Consent”) will correspond to the capitalized terms
used in the Agreement, the Third Amended Forbearance Agreement, and the Second
Amended Participation Agreement. 
Guarantor and Subordinated Creditors acknowledge: (i) receiving a
copy of and reading the Agreement, and (ii) the continuing effectiveness
of the Guaranty and the Subordination Agreements to which they are parties, and
any other agreements, documents, or instruments securing or otherwise relating
to the Guaranty and Subordination Agreements previously executed and delivered
by the undersigned to Lender.

 

2.             Guarantor and Subordinated
Creditors consent to the modification of the Loan Documents and all other
matters in the Agreement.

 

3.             Guarantor and Subordinated
Creditors agree that all references, if any, to the Obligations, the Credit
Agreement, the Collateral, and the Loan Documents in the Guaranty and the
Subordination Agreements shall be deemed to refer to such agreements,
documents, and instruments as modified by the Agreement.

 

4.             Guarantor and Subordinated
Creditors reaffirm their obligations to Lender under the Subordination
Agreements and Guaranty (as modified by the Agreement), and agree that the
Guaranty and Subordination Agreements shall continue in full force and effect
and remain unchanged, except as specifically modified by the Agreement.

 

5.             Guarantor and Subordinated
Creditors acknowledge and confirm that they have no claims, counterclaims,
defenses, offsets, or adverse claims of any kind with respect to the
enforcement of Lender’s rights and remedies against Borrower and against
Guarantor under the Guaranty and the other Loan Documents and against the
Subordinated Creditors under the Subordination Agreements.

 

IN WITNESS WHEREOF, Guarantor and
Subordinated Creditors have executed this Consent.

 

3

 

	
  DATED as of the 21st day of December, 2005.

  	
  OPTA CORPORATION (formerly known as

  LOTUS PACIFIC, INC.), a Delaware

  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Wang

  	
   

  
	
   

  	
  Its: COO

  
	
   

  	
   

  
	
   

  	
  GUARANTOR

  
	
   

  	
   

  
	
   

  	
   

  
	
  DATED as of the 21st day of December, 2005.

  	
  T.C.L. MULTIMEDIA TECHNOLOGY

  HOLDINGS LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Yuan Bing

  	
   

  
	
   

  	
  Its: Vice General Manager

  
	
   

  	
   

  
	
   

  	
  SUBORDINATED CREDITOR

  
	
   

  	
   

  
	
   

  	
   

  
	
  DATED as of the 21st day of December, 2005.

  	
  OPTA CORPORATION (formerly known as

  LOTUS PACIFIC, INC.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Wang

  	
   

  
	
   

  	
  Its: COO

  
	
   

  	
   

  
	
   

  	
  SUBORDINATED CREDITOR

  

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]