Document:

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                                                                    EXHIBIT 10.9

                                  $48,000,000

                                LEASE AGREEMENT
                                (Improvements)

                                    BETWEEN

                            BNP LEASING CORPORATION

                                   ("BNPLC")

                                      AND

                            EXTREME NETWORKS, INC.

                                  ("Extreme")

                                 June 1, 2000

                           (Santa Clara, California)

================================================================================

[Improvements]
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
1.   Term.....................................................................................................    2
     (a)  Scheduled Term......................................................................................    2
          --------------
     (b)  Election by Extreme to Terminate After Accelerating the Designated Sale Date........................    2
          ----------------------------------------------------------------------------
     (c)  Extension of the Term...............................................................................    3
          ---------------------

2.   Use and Condition of the Property........................................................................    3
     (a)  Use.................................................................................................    3
          ---
     (b)  Condition of the Property...........................................................................    4
          -------------------------
     (c)  Consideration for and Scope of Waiver...............................................................    4
          -------------------------------------

3.   Rent.....................................................................................................    4
     (a)  Base Rent Generally.................................................................................    4
          -------------------
     (b)  Impact of Collateral Upon Formulas..................................................................    5
          ----------------------------------
     (c)  Calculation of and Due Dates for Base Rent..........................................................    5
          ------------------------------------------
          (i)    Determination of Payment Due Dates, Generally................................................    5
                 ---------------------------------------------
          (ii)   Special Adjustments to Base Rent Payment Dates and Periods...................................    6
                 ----------------------------------------------------------
          (iii)  Base Rent Formula for Periods During Which The Collateral Percentage is 100%.................    6
                 ----------------------------------------------------------------------------
          (iv)   Base Rent Formula for Periods During Which The Collateral Percentage is Less Than 100%.......    7
                 --------------------------------------------------------------------------------------
     (d)  Additional Rent.....................................................................................    8
          ---------------
     (e)  Arrangement Fee.....................................................................................    8
          ---------------
     (f)  Administrative Agency Fees..........................................................................    8
          --------------------------
     (g)  No Demand or Setoff.................................................................................    8
          -------------------
     (h)  Default Interest and Order of Application...........................................................    8
          -----------------------------------------

4.   Nature of this Agreement.................................................................................    8
     (a)  "Net" Lease Generally...............................................................................    8
          ---------------------
     (b)  No Termination......................................................................................    8
          --------------
     (c)  Tax Reporting.......................................................................................    9
          -------------
     (d)  Characterization of this Improvements Lease.........................................................   10
          -------------------------------------------

5.   Payment of Executory Costs and Losses Related to the Property............................................   10
     (a)  Impositions.........................................................................................   10
          -----------
     (b)  Increased Costs; Capital Adequacy Charges...........................................................   11
          -----------------------------------------
     (c)  Extreme's Payment of Other Losses; General Indemnification..........................................   12
          ----------------------------------------------------------
     (d)  Exceptions and Qualifications to Indemnities........................................................   13
          --------------------------------------------

6.   Initial Renovations......................................................................................   14
     (a)  Funds Advanced to Extreme From the Initial Funding Advance..........................................   14
          ----------------------------------------------------------
     (b)  Quality and Timing of the Initial Renovations.......................................................   14
          ---------------------------------------------
     (c)  Control of Work.....................................................................................   14
          ---------------
     (d)  Adequacy of Drawings, Specifications and Budgets....................................................   14
          ------------------------------------------------
</TABLE>

[Improvements]
<PAGE>

<TABLE>
<S>                                                                                                           <C>
     (e)  Existing Condition of the Land and Improvements..................................................... 15
          -----------------------------------------------
     (f)  Clean Up............................................................................................ 15
          --------
     (g)  No Damage for Delays................................................................................ 15
          --------------------
     (h)  No Fee For Construction Management.................................................................. 15
          ----------------------------------

7.   Status of Property Acquired With Funds Provided by BNPLC................................................. 15

8.   Environmental............................................................................................ 16
     (a)  Environmental Covenants by Extreme.................................................................. 16
          ----------------------------------
     (b)  Right of BNPLC to do Remedial Work Not Performed by Extreme......................................... 16
          -----------------------------------------------------------
     (c)  Environmental Inspections and Reviews............................................................... 17
          -------------------------------------
     (d)  Communications Regarding Environmental Matters...................................................... 17
          ----------------------------------------------

9.   Insurance Required and Condemnation...................................................................... 18
     (a)  Liability Insurance................................................................................. 18
          -------------------
     (b)  Property Insurance.................................................................................. 18
          ------------------
     (c)  Failure to Obtain Insurance......................................................................... 19
          ---------------------------
     (d)  Condemnation........................................................................................ 19
          ------------

10.  Application of Insurance and Condemnation Proceeds....................................................... 19
     (a)  Collection and Application of Insurance and Condemnation Proceeds Generally......................... 19
          ---------------------------------------------------------------------------
     (b)  Advances of Escrowed Proceeds to Extreme............................................................ 20
          ----------------------------------------
     (c)  Application of Escrowed Proceeds as a Qualified Prepayment.......................................... 20
          ----------------------------------------------------------
     (d)  Special Provisions Applicable After Completion of Initial Renovations............................... 20
          ---------------------------------------------------------------------
     (e)  Special Provisions Applicable After an Event of Default............................................. 20
          -------------------------------------------------------
     (f)  Extreme's Obligation to Restore..................................................................... 21
          -------------------------------
     (g)  Takings of All or Substantially All of the Property................................................. 21
          ---------------------------------------------------

11.  Additional Representations, Warranties and Covenants of Extreme Concerning the Property.................. 21
     (a)  Compliance with Covenants and Laws.................................................................. 21
          ----------------------------------
     (b)  Operation of the Property........................................................................... 21
          -------------------------
     (c)  Debts for Construction, Maintenance, Operation or Development....................................... 22
          -------------------------------------------------------------
     (d)  Repair, Maintenance, Alterations and Additions...................................................... 23
          ----------------------------------------------
     (e)  Permitted Encumbrances and Development Documents.................................................... 23
          ------------------------------------------------
     (f)  Books and Records Concerning the Property........................................................... 23
          -----------------------------------------

12.  Financial Covenants, Reporting Covenants and Other Covenants Incorporated
     by Reference to Schedule 1............................................................................... 24
                     ----------

13.  Assignment and Subletting by Extreme..................................................................... 24
     (a)  BNPLC's Consent Required............................................................................ 24
          ------------------------
     (b)  Standard for BNPLC's Consent to Assignments and Certain Other Matters............................... 24
          ---------------------------------------------------------------------
     (c)  Consent Not a Waiver................................................................................ 24
          --------------------

14.  Assignment by BNPLC...................................................................................... 24
     (a)  Restrictions on Transfers........................................................................... 24
          -------------------------
     (b)  Effect of Permitted Transfer or other Assignment by BNPLC........................................... 25
          ---------------------------------------------------------

15.  BNPLC's Right of Access.................................................................................. 25
</TABLE>

[Improvements]
<PAGE>

<TABLE>
<S>                                                                                                           <C>
16.  Events of Default.......................................................................................  26

17.  Remedies................................................................................................  28
     (a)  Basic Remedies.....................................................................................  28
          --------------
     (b)  Notice Required So Long As the Purchase Option and Extreme's Initial Remarketing
          --------------------------------------------------------------------------------
          Rights and Obligations Continue Under the Purchase Agreement.......................................  29
          ------------------------------------------------------------
     (c)  Enforceability.....................................................................................  30
          --------------
     (d)  Remedies Cumulative................................................................................  30
          -------------------

18.  Default by BNPLC........................................................................................  30

19.  Quiet Enjoyment.........................................................................................  30

20.  Surrender Upon Termination..............................................................................  31

21.  Holding Over by Extreme.................................................................................  31

22.  Independent Obligations Evidenced by the Other Operative Documents......................................  31
</TABLE>

[Improvements]
<PAGE>

                            Exhibits and Schedules

<TABLE>
<S>                                   <C>
Exhibit A..........................                            Legal Description
---------

Exhibit B..........................                       Insurance Requirements
---------

Exhibit C..........................                   LIBOR Period Election Form
---------

Schedule 1.........................   Financial Covenants and Other Requirements
----------
</TABLE>

[Improvements]

                                     (IV)
<PAGE>

                                LEASE AGREEMENT

                                (IMPROVEMENTS)

         This LEASE AGREEMENT (IMPROVEMENTS) (this "Improvements Lease") is made
and dated as of June 1, 2000 (the "Effective Date") by and between BNP LEASING
CORPORATION, a Delaware corporation ("BNPLC"), and EXTREME NETWORKS, INC., a
Delaware corporation ("Extreme").

                                   RECITALS

         Contemporaneously with the execution of this Improvements Lease, BNPLC
and Extreme are executing a Common Definitions and Provisions Agreement
(Improvements) dated as of the Effective Date (the "Common Definitions and
Provisions Agreement (Improvements)"), which by this reference is incorporated
into and made a part of this Improvements Lease for all purposes. As used in
this Improvements Lease, capitalized terms defined in the Common Definitions and
Provisions Agreement (Improvements) and not otherwise defined in this
Improvements Lease are intended to have the respective meanings assigned to them
in the Common Definitions and Provisions Agreement (Improvements).

         Pursuant to the Acquisition Contract, which covers the Land described
in Exhibit A, BNPLC is acquiring the Land and any appurtenances thereto and all
existing Improvements thereon from Seller contemporaneously with the execution
of this Improvements Lease.

         In anticipation of BNPLC's acquisition of the Land and the existing
Improvements thereon under the Acquisition Contract, BNPLC and Extreme have
reached agreement as to the terms and conditions upon which BNPLC is willing to
lease the existing Improvements and the Improvements to be constructed on the
Land as hereinafter provided, and by this Improvements Lease BNPLC and Extreme
desire to evidence such agreement.

                               GRANTING CLAUSES

         BNPLC does hereby LEASE, DEMISE and LET unto Extreme for the term
hereinafter set forth all right, title and interest of BNPLC, now owned or
hereafter acquired, in and to:

               (1)  any and all Improvements; and

               (2)  all easements and other rights appurtenant to the
         Improvements, whether now owned or hereafter acquired by BNPLC.

BNPLC's interest in all property described in clauses (1) and (2) above are
hereinafter referred to collectively as the "Real Property". The Real Property
does not include the Land itself, it being understood that the Other Lease
Agreement constitutes a separate lease of the Land and the appurtenances
thereto, and only the Land and the appurtenances thereto, from BNPLC to Extreme.

         To the extent, but only to the extent, that assignable rights or
interests in, to or under the following have been or will be acquired by BNPLC
under the Acquisition Contract or acquired by BNPLC pursuant to Paragraph 7
below, BNPLC also hereby grants and assigns to Extreme for the term of this
Improvements Lease the right to use and enjoy (and, in the case of contract
rights, to enforce) such rights or interests of BNPLC:

[Improvements]
<PAGE>

               (a)  any goods, equipment, furnishings, furniture and other
         tangible personal property of whatever nature that are located on the
         Land and all renewals or replacements of or substitutions for any of
         the foregoing;

               (b)  the benefits, if any, conferred upon the owner of the Real
         Property by the Permitted Encumbrances (including the right to receive
         rents under and to otherwise enforce the Premises Leases) and
         Development Documents; and

               (c)  any permits, licenses, franchises, certificates, and other
         rights and privileges against third parties related to the Real
         Property.

Such rights and interests of BNPLC, whether now existing or hereafter arising,
are hereinafter collectively called the "Personal Property". The Real Property
and the Personal Property are hereinafter sometimes collectively called the
"Property."

          However, the leasehold estate conveyed hereby and Extreme's rights
hereunder are expressly made subject and subordinate to the terms and conditions
of this Improvements Lease, the Premises Leases and all other Permitted
Encumbrances, and to any other claims or encumbrances not constituting Liens
Removable by BNPLC.

                         GENERAL TERMS AND CONDITIONS

         The Property is leased by BNPLC to Extreme and is accepted and is to be
used and possessed by Extreme upon and subject to the following terms and
conditions:

         1     TERM.

               (a)  Scheduled Term. The term of this Improvements Lease (the
                    --------------
"Term") shall commence on and include the Effective Date, and end on the first
Business Day of July, 2005, unless sooner terminated as expressly herein
provided.

               (b)  Election by Extreme to Terminate After Accelerating the
                    -------------------------------------------------------
Designated Sale Date. Extreme shall be entitled to accelerate the Designated
--------------------
Sale Date (and thus accelerate the purchase of BNPLC's interest in the Property
by Extreme or by an Applicable Purchaser pursuant to the Purchase Agreement) by
sending a notice to BNPLC as provided in clause (2) of the definition of
"Designated Sale Date" in the Common Definitions and Provisions Agreement
(Improvements). In the event, because of Extreme's election to so accelerate the
Designated Sale Date or for any other reason, the Designated Sale Date occurs
before the end of the scheduled Term, Extreme may terminate this Improvements
Lease on or after the Designated Sale Date; provided, however, as a condition to
any such termination by Extreme, Extreme must have done the following prior to
the termination:

               (i)   purchased or caused an Applicable Purchaser to purchase the
         Property pursuant to the Purchase Agreement and satisfied all of
         Extreme's other obligations under the Purchase Agreement;

               (ii)  paid to BNPLC all Base Rent and all other Rent due on or
         before or accrued through the Designated Sale Date; and

               (iii) paid any Breakage Costs caused by BNPLC's sale of the
         Property pursuant to the Purchase Agreement.

[Improvements]

                                      -2-
<PAGE>

          (c)  Extension of the Term. The Term may be extended at the option of
               ---------------------
Extreme for two successive periods of five years each; provided, however, that
prior to any such extension the following conditions must have been satisfied:
(A) at least one hundred eighty days prior to the commencement of any such
extension, BNPLC and Extreme must have agreed in writing upon, and received the
consent and approval of BNPLC's Parent and all other Participants to (1) a
corresponding extension not only to the date for the expiration of the Term
specified above in this Section, but also to the date specified in clause (1) of
the definition of Designated Sale Date in the Common Definitions and Provisions
Agreement (Improvements), and (2) an adjustment to the Rent that Extreme will be
required to pay for the extension, it being expected that the Rent for the
extension may be different than the Rent required for the original Term, and it
being understood that the Rent for any extension must in all events be
satisfactory to both BNPLC and Extreme, each in its sole and absolute
discretion; (B) no Event of Default shall have occurred and be continuing at the
time of Extreme's exercise of its option to extend; (C) prior to any such
extension, Extreme must have completed any Initial Renovations which it has
elected to undertake as described in Paragraph 6; and (D) immediately prior to
any such extension, this Improvements Lease must remain in effect. With respect
to the condition that BNPLC and Extreme must have agreed upon the Rent required
for any extension of the Term, neither Extreme nor BNPLC is willing to submit
itself to a risk of liability or loss of rights hereunder for being judged
unreasonable. Accordingly, both Extreme and BNPLC hereby disclaim any obligation
express or implied to be reasonable in negotiating the Rent for any such
extension. Subject to the changes to the Rent payable during any extension of
the Term as provided in this Paragraph, if Extreme exercises its option to
extend the Term as provided in this Paragraph, this Improvements Lease shall
continue in full force and effect, and the leasehold estate hereby granted to
Extreme shall continue without interruption and without any loss of priority
over other interests in or claims against the Property that may be created or
arise after the date hereof and before the extension.

     2    USE AND CONDITION OF THE PROPERTY.

          (a)    Use. Subject to the Permitted Encumbrances, the Development
                 ---
Documents and the terms hereof, Extreme may use and occupy the Property during
the Term, but only for the following purposes and other lawful purposes
incidental thereto:

          (i)    the making of Initial Renovations as described in Paragraph 6;

          (ii)   administrative and office space;

          (iii)  research and development, production, assembly, distribution
     and warehousing, in each case of products that are of substantially the
     same type and character as those regularly sold by Extreme in the ordinary
     course of its business as of the Effective Date;

          (iv)   cafeteria, library and other support facilities that Extreme
     may provide to its employees; and

          (vi)   other lawful purposes (including research and development or
     production of products that are not of substantially the same type and
     character as those regularly sold by Extreme in the ordinary course of its
     business as of the Effective Date) approved in advance and in writing by
     BNPLC, which approval will not be unreasonably withheld (but Extreme
     acknowledges that BNPLC's withholding of such approval shall be reasonable
     if BNPLC determines in good faith that (1) giving the approval may
     materially increase BNPLC's risk of liability for any existing or future
     environmental problem, or (2) giving the approval is likely to
     substantially increase BNPLC's administrative burden of complying with or
     monitoring Extreme's compliance with the requirements of this Improvements
     Lease or other Operative Documents).

[Improvements]

                                      -3-
<PAGE>

     Nothing in this subparagraph will prevent a tenant under a Premises Lease,
     executed prior to the Effective Date, from using the space covered thereby
     for purposes expressly authorized by the terms and conditions of such
     Premises Lease.

          (b)  Condition of the Property. Extreme acknowledges that it has
               -------------------------
carefully and fully inspected the Property and accepts the Property in its
present state, AS IS, and without any representation or warranty, express or
implied, as to the condition of such property or as to the use which may be made
thereof. Extreme also accepts the Property without any covenant, representation
or warranty, express or implied, by BNPLC or its Affiliates regarding the title
thereto or the rights of any parties in possession of any part thereof, except
as expressly set forth in Paragraph 19. BNPLC shall not be responsible for any
latent or other defect or change of condition in the Land or in Improvements,
fixtures and personal property forming a part of the Property or for any
violations with respect thereto of Applicable Laws. Further, BNPLC shall not be
required to furnish to Extreme any facilities or services of any kind, including
water, steam, heat, gas, air conditioning, electricity, light or power.

          (c)  Consideration for and Scope of Waiver. The provisions of
               -------------------------------------
subparagraph 2.(b) above have been negotiated by BNPLC and Extreme after due
consideration for the Rent payable hereunder and are intended to be a complete
exclusion and negation of any representations or warranties of BNPLC or its
Affiliates, express or implied, with respect to the Property that may arise
pursuant to any law now or hereafter in effect or otherwise, except as expressly
set forth herein.

     However, such exclusion of representations and warranties by BNPLC is not
intended to impair any representations or warranties made by other parties, the
benefit of which may pass to Extreme during the Term because of the definition
of Personal Property and Property above.

     3    RENT.

          (a)  Base Rent Generally. On each Base Rent Date through the end of
               -------------------
the Term, Extreme shall pay BNPLC rent ("Base Rent"), calculated as provided
below. Each payment of Base Rent must be received by BNPLC no later than 10:00
a.m. (Pacific time) on the date it becomes due; if received after 10:00 a.m.
(Pacific time) it will be considered for purposes of this Improvements Lease as
received on the next following Business Day. At least five days prior to each
Base Rent Date, BNPLC shall notify Extreme in writing of the amount of each
installment of Base Rent that will be required on that date, calculated as
provided below. Any failure by BNPLC to so notify Extreme, however, shall not
constitute a waiver of BNPLC's right to payment, but absent such notice Extreme
shall not be in default hereunder for any underpayment resulting therefrom if
Extreme, in good faith, reasonably estimates the payment required, makes a
timely payment of the amount so estimated and corrects any underpayment within
three Business Days after being notified by BNPLC of the underpayment.

          (b)  Impact of Collateral Upon Formulas. To ease the administrative
               ----------------------------------
burden of this Improvements Lease and the Pledge Agreement, the formulas for
calculating Base Rent set out below in subparagraph 3.(c) reflect a reduction in
the Base Rent equal to the interest that would accrue on any Collateral provided
in accordance with the requirements of the Pledge Agreement from time to time if
the Accounts (as defined in the Pledge Agreement) bore interest at the Deposit
Rate. BNPLC has agreed to such reduction to provide Extreme with the economic
equivalent of interest on such Collateral, and in return Extreme has agreed to
the provisions of the Pledge Agreement that excuse the actual payment of
interest on the Accounts. By incorporating such reduction of Base Rent into the
formulas below, and by providing for noninterest bearing Accounts in the Pledge
Agreement, an unnecessary and cumbersome periodic exchange of equal payments
will be avoided. It is not, however, the intent of BNPLC or Extreme to
understate Base Rent or interest for financial reporting purposes. Accordingly,
for purposes of any financial reports that this Improvements Lease requires of

[Improvements]

                                      -4-
<PAGE>

Extreme from time to time, Extreme may report Base Rent as if there had been no
such reduction and as if the Collateral from time to time provided in accordance
with the requirements of the Pledge Agreement had been maintained in Accounts
bearing interest at the Deposit Rate.

          (c)      Calculation of and Due Dates for Base Rent. Payments of Base
                   ------------------------------------------
Rent shall be calculated and become due as follows:

          (i)      Determination of Payment Due Dates, Generally.
                   ---------------------------------------------

                   a0 For all Base Rent Periods subject to a LIBOR Period
          Election of one month or three months, Base Rent shall be due in one
          installment on the Base Rent Date upon which the Base Rent Period
          ends.

                   b0 For Base Rent Periods subject to a LIBOR Period Election
          of six months, Base Rent shall be payable in two installments, with
          the first installment becoming due on the Base Rent Date that occurs
          on the first Business Day of the third calendar month following the
          commencement of such Base Rent Period, and with the second installment
          becoming due on the Base Rent Date upon which the Base Rent Period
          ends.

                   c0 For Base Rent Periods subject to a LIBOR Period Election
          of nine months, Base Rent shall be payable in three installments, with
          the first installment becoming due on the Base Rent Date that occurs
          on the first Business Day of the third calendar month following the
          commencement of such Base Rent Period, with the second installment
          becoming due on the first Business Day of the sixth calendar month
          following the commencement of such Base Rent Period, and with the
          third installment becoming due on the Base Rent Date upon which the
          Base Rent Period ends.

                   d0 For Base Rent Periods subject to a LIBOR Period Election
          of twelve months, Base Rent shall be payable in four installments,
          with the first installment becoming due on the Base Rent Date that
          occurs on the first Business Day of the third calendar month following
          the commencement of such Base Rent Period, with the second installment
          becoming due on the first Business Day of the sixth calendar month
          following the commencement of such Base Rent Period, with the third
          installment becoming due on the first Business Day of the ninth
          calendar month following the commencement of such Base Rent Period,
          and with the fourth installment becoming due on the Base Rent Date
          upon which the Base Rent Period ends.

          (ii)     Special Adjustments to Base Rent Payment Dates and Periods.
                   ----------------------------------------------------------
Notwithstanding the foregoing:

                   a0 Any Base Rent Period that begins before, and does not
          otherwise end before, the first Business Day of the first calendar
          month following a Failed Collateral Test Date shall end upon but not
          include such first Business Day, and such first Business Day shall
          constitute a Base Rent Date, upon which Extreme must pay all accrued,
          unpaid Base Rent for the Base Rent Period just ended.

                   b0 In addition to Base Rent due on a the first Business Day
          of the first calendar month following a Failed Collateral Test Date,
          Extreme must pay the Breakage Costs, if any, resulting from any early
          ending of a Base Rent Period pursuant to the preceding clause
          3.(c)(ii)a).

[Improvements]
                                      -5-
<PAGE>

                    c0 If Extreme or any Applicable Purchaser purchases BNPLC's
          interest in the Property pursuant to the Purchase Agreement, any
          accrued unpaid Base Rent and all outstanding Additional Rent shall be
          due on the date of purchase in addition to the purchase price and
          other sums due BNPLC under the Purchase Agreement.

          (iii)     Base Rent Formula for Periods During Which The Collateral
                    ---------------------------------------------------------
Percentage is 100%. Each installment of Base Rent payable for any Base Rent
------------------
Period during which the Collateral Percentage is one hundred percent (100%)
shall equal:

          .         Stipulated Loss Value on the first day of such Base Rent
                    Period, times

          .         the sum of (a) the Secured Spread and (b) the Effective
                    Rate/Deposit Rate Difference for the period from and
                    including the preceding Base Rent Date to but not including
                    the Base Rent Date upon which the installment is due, times

          .         the number of days in the period from and including the
                    preceding Base Rent Date to but not including the Base Rent
                    Date upon which the installment is due, divided by

          .         three hundred sixty.

          Assume, only for the purpose of illustration: that the Collateral
Percentage for a hypothetical Base Rent Period is one hundred percent (100%);
that prior to the first day of such Base Rent Period Qualified Prepayments have
been received by BNPLC, leaving a Stipulated Loss Value of $15,000,000; that the
sum of the Secured Spread and the Effective Rate/Deposit Rate Difference is
forty-two and one-half basis points (42.5/100 of 1%); and that such Base Rent
Period contains exactly thirty days. Under such assumptions, the Base Rent for
the hypothetical Base Rent Period will equal:

                         $15,000,000 x .425% x 30/360 = $5312.50

          (iv)      Base Rent Formula for Periods During Which The Collateral
Percentage is Less Than 100%. Each installment of Base Rent payable for any Base
Rent Period during which the Collateral Percentage is less than one hundred
percent (100%) shall equal:

          .         Stipulated Loss Value on the first day of such Base Rent
                    Period, times

          .         the sum of:

                         (A) the product of:

                              (1)  the Collateral Percentage for such Base Rent
                                   Period, times

                              (2)  the sum of (a) the Secured Spread and (b) the
                                   Effective Rate/Deposit Rate Difference for
                                   the period from and including the preceding
                                   Base Rent Date to but not including the Base
                                   Rent Date upon which the installment is due,
                                   plus

[Improvements]

                                      -6-
<PAGE>

                         (B) the product of:

                              (1)  one minus the Collateral Percentage for such
                                   Base Rent Period, times

                              (2)  the sum of (a) the Effective Rate with
                                   respect to such Base Rent Period, plus (b)
                                   the Unsecured Spread for the period from and
                                   including the preceding Base Rent Date to but
                                   not including the Base Rent Date upon which
                                   the installment is due, times

          .    the number of days in the period from and including the preceding
               Base Rent Date to but not including the Base Rent Date upon which
               the installment is due, divided by

          .    three hundred sixty.

          Assume, only for the purpose of illustration: that the Collateral
     Percentage for a hypothetical Base Rent Period is fifty-five percent (55%);
     that prior to the first day of such Base Rent Period Qualified Prepayments
     have been received by BNPLC, leaving a Stipulated Loss Value of
     $15,000,000; that the Effective Rate for the Base Rent Period is 6%; that
     the sum of the Secured Spread and the Effective Rate/Deposit Rate
     Difference is forty-two and one-half basis points (42.5/100 of 1%); that
     upon the commencement of such Base Rent Period the Unsecured Spread is two
     hundred twenty-five basis points (225/100 of 1%); and that such Base Rent
     Period contains exactly thirty days. Under such assumptions, the Base Rent
     for the hypothetical Base Rent Period will equal:

     $15,000,000 x {(55% x .425%) + ([1 - 55%] x [6% + 2.25%])} x 30/360 =
     $49,328.12

          (d)  Additional Rent. All amounts which Extreme is required to pay to
               ---------------
or on behalf of BNPLC pursuant to this Improvements Lease, together with every
charge, premium, interest and cost set forth herein which may be added for
nonpayment or late payment thereof, shall constitute rent (all such amounts,
other than Base Rent, are herein called "Additional Rent", and together Base
Rent and Additional Rent are herein sometimes called "Rent").

          (e)  Arrangement Fee. Upon execution and delivery of this Improvements
               ---------------
Lease by BNPLC, an Arrangement Fee (the "Arrangement Fee") will be paid to BNPLC
from the Initial Funding Advance (and thus be included in Stipulated Loss Value)
in the amount provided in the letter dated as of April 20, 2000 from BNPLC to
Extreme.

          (f)  Administrative Agency Fees. Upon execution and delivery of this
               --------------------------
Improvements Lease by BNPLC, an administrative agency fee (an "Administrative
Agency Fee") will be paid to BNPLC from the Initial Funding Advance (and thus be
included in Stipulated Loss Value) in the amount provided in the letter dated as
of April 20, 2000 from BNPLC to Extreme. Also, on each anniversary of the date
hereof, Extreme shall pay to BNPLC an administrative agency fee (also, an
"Administrative Agency Fee") in the amount set forth in the letter agreement
dated as of April 20, 2000 from BNPLC to Extreme.

[Improvements]

                                      -7-
<PAGE>

          (g)  No Demand or Setoff. Except as expressly provided herein,
               -------------------
Extreme shall pay all Rent without notice or demand and without counterclaim,
deduction, setoff or defense.

          (h)  Default Interest and Order of Application. All Rent shall bear
               -----------------------------------------
interest, if not paid when first due, at the Default Rate in effect from time to
time from the date due until paid; provided, that nothing herein contained will
be construed as permitting the charging or collection of interest at a rate
exceeding the maximum rate permitted under Applicable Laws. BNPLC shall be
entitled to apply any amounts paid by or on behalf of Extreme against any Rent
then past due in the order the same became due or in such other order as BNPLC
may elect.

     4    Nature of this Agreement.

          (a)  "Net" Lease Generally. Subject only to the exceptions listed in
               ---------------------
subparagraph 5.(d) below, it is the intention of BNPLC and Extreme that Base
Rent, the Arrangement Fees, Administrative Agency Fees, Upfront Syndication Fees
and other payments herein specified shall be absolutely net to BNPLC and that
Extreme shall pay all costs, expenses and obligations of every kind relating to
the Property or this Improvements Lease which may arise or become due,
including: (i) any taxes payable by virtue of BNPLC's receipt of amounts paid to
or on behalf of BNPLC in accordance with Paragraph 5; (ii) any amount for which
BNPLC is or becomes liable with respect to the Permitted Encumbrances or the
Development Documents; and (iii) any costs incurred by BNPLC (including
Attorneys' Fees) because of BNPLC's acquisition or ownership of any interest in
the Property or because of this Improvements Lease or the transactions
contemplated herein.

          (b)  No Termination. Except as expressly provided in this Improvements
               --------------
Lease itself, this Improvements Lease shall not terminate, nor shall Extreme
have any right to terminate this Improvements Lease, nor shall Extreme be
entitled to any abatement of the Rent, nor shall the obligations of Extreme
under this Improvements Lease be excused, for any reason whatsoever, including
any of the following: (i) any damage to or the destruction of all or any part of
the Property from whatever cause, (ii) the taking of the Property or any portion
thereof by eminent domain or otherwise for any reason, (iii) the prohibition,
limitation or restriction of Extreme's use or development of all or any portion
of the Property or any interference with such use by governmental action or
otherwise, (iv) any eviction of Extreme or of anyone claiming through or under
Extreme, (v) any default on the part of BNPLC under this Improvements Lease or
under any other agreement to which BNPLC and Extreme are parties, (vi) the
inadequacy in any way whatsoever of the design, construction, assembly or
installation of any improvements, fixtures or tangible personal property
included in the Property (it being understood that BNPLC has not made, does not
make and will not make any representation express or implied as to the adequacy
thereof), (vii) any latent or other defect in the Property or any change in the
condition thereof or the existence with respect to the Property of any
violations of Applicable Laws, (viii) any breach by Seller of the Acquisition
Contract or other agreements or promises or representations made in connection
with the Acquisition Contract, (ix) any breach of a Premises Lease by any lessee
thereunder, or (x) any other cause whether similar or dissimilar to the
foregoing. It is the intention of the parties hereto that the obligations of
Extreme hereunder shall be separate and independent of the covenants and
agreements of BNPLC, that Base Rent and all other sums payable by Extreme
hereunder shall continue to be payable in all events and that the obligations of
Extreme hereunder shall continue unaffected, unless the requirement to pay or
perform the same shall have been terminated or limited pursuant to an express
provision of this Improvements Lease. Without limiting the foregoing, Extreme
waives to the extent permitted by Applicable Laws, except as otherwise expressly
provided herein, all rights to which Extreme may now or hereafter be entitled by
law (including any such rights arising because of any implied "warranty of
suitability" or other warranty under Applicable Laws) (i) to quit, terminate or
surrender this Improvements Lease or the Property or any part thereof or (ii) to
any abatement, suspension, deferment or reduction of the Rent.

[Improvements]
                                      -8-
<PAGE>

     However, nothing in this subparagraph 4.(b) shall be construed as a
waiver by Extreme of any right Extreme may have at law or in equity to the
following remedies, whether because of BNPLC's failure to remove a Lien
Removable by BNPLC or because of any other default by BNPLC under this
Improvements Lease that continues beyond the period for cure provided in
Paragraph 18: (i) the recovery of monetary damages, (ii) injunctive relief in
case of the violation, or attempted or threatened violation, by BNPLC of any of
the express covenants, agreements, conditions or provisions of this Improvements
Lease which are binding upon BNPLC (including the confidentiality provisions set
forth in subparagraph 15.(c) below), or (iii) a decree compelling performance by
BNPLC of any of the express covenants, agreements, conditions or provisions of
this Improvements Lease which are binding upon BNPLC.

          (c)  Tax Reporting. BNPLC and Extreme shall report this Improvements
               -------------
Lease and the Purchase Agreement for federal income tax purposes as a
conditional sale unless prohibited from doing so by the Internal Revenue
Service. If the Internal Revenue Service shall challenge BNPLC's
characterization of this Improvements Lease and the Purchase Agreement as a
conditional sale for federal income tax reporting purposes, BNPLC shall notify
Extreme in writing of such challenge and consider in good faith any reasonable
suggestions by Extreme about an appropriate response. In any event, Extreme
shall (subject only to the limitations set forth in this subparagraph) indemnify
and hold harmless BNPLC from and against all liabilities, costs, additional
taxes (other than Excluded Taxes) and other expenses that may arise or become
due because of such challenge or because of any resulting recharacterization
required by the Internal Revenue Service, including any additional taxes that
may become due upon any sale under the Purchase Agreement to the extent (if any)
that such additional taxes are not offset by tax savings resulting from
additional depreciation deductions or other tax benefits to BNPLC of the
recharacterization. If BNPLC receives a written notice of any challenge by the
Internal Revenue Service that BNPLC believes will be covered by this Paragraph,
then BNPLC shall promptly furnish a copy of such notice to Extreme. The failure
to so provide a copy of the notice to Extreme shall not excuse Extreme from its
obligations under this Paragraph; provided, that if none of the officers of
Extreme and none of the employees of Extreme responsible for tax matters are
aware of the challenge described in the notice and such failure by BNPLC renders
unavailable defenses that Extreme might otherwise assert, or precludes actions
that Extreme might otherwise take, to minimize its obligations hereunder, then
Extreme shall be excused from its obligation to indemnify BNPLC against
liabilities, costs, additional taxes and other expenses, if any, which would not
have been incurred but for such failure. For example, if BNPLC fails to provide
Extreme with a copy of a notice of a challenge by the Internal Revenue Service
covered by the indemnities set out in this Improvements Lease and Extreme is not
otherwise already aware of such challenge, and if as a result of such failure
BNPLC becomes liable for penalties and interest covered by the indemnities in
excess of the penalties and interest that would have accrued if Extreme had been
promptly provided with a copy of the notice, then Extreme will be excused from
any obligation to BNPLC to pay the excess.

          (d)  Characterization of this Improvements Lease. For purposes of
               -------------------------------------------
determining the appropriate financial accounting for this Improvements Lease and
for purposes of determining their respective rights and remedies under state
law, BNPLC and Extreme believe and intend that (i) this Improvements Lease
constitutes a true lease, not a mere financing arrangement, enforceable in
accordance with its express terms, and the preceding subparagraph is not
intended to affect the enforcement of any other provisions of this Improvements
Lease or the Purchase Agreement, and (ii) the Purchase Agreement shall
constitute a separate and independent contract, enforceable in accordance with
the express terms and conditions set forth therein. In this regard, Extreme
acknowledges that Extreme asked BNPLC to participate in the transactions
evidenced by this Improvements Lease and the Purchase Agreement as a landlord
and owner of the Property, not as a lender. Although other transactions might
have been used to accomplish similar results, Extreme expects to receive certain
material accounting and other advantages through the use of a lease transaction.
Accordingly, and notwithstanding the reporting for income tax purposes described
in the preceding subparagraph, Extreme cannot equitably deny that this
Improvements Lease and the Purchase Agreement should be construed and enforced
in accordance with their respective terms,

[Improvements]
                                      -9-
<PAGE>

rather than as a mortgage or other security device, in any action brought by
BNPLC to enforce this Improvements Lease or the Purchase Agreement.

     5    Payment of Executory Costs and Losses Related to the Property.

          (a)  Impositions. Subject only to the exceptions listed in
               -----------
subparagraph 5.(d) below, Extreme shall pay or cause to be paid prior to
delinquency all ad valorem taxes assessed against the Property and other
Impositions. If requested by BNPLC from time to time, Extreme shall furnish
BNPLC with receipts showing payment of all Impositions prior to the applicable
delinquency date therefor.

     Notwithstanding the foregoing, Extreme may in good faith, by appropriate
proceedings, contest the validity, applicability or amount of any asserted
Imposition, and pending such contest Extreme shall not be deemed in default
under any of the provisions of this Improvements Lease because of the Imposition
if (1) Extreme diligently prosecutes such contest to completion in a manner
reasonably satisfactory to BNPLC, and (2) Extreme promptly causes to be paid any
amount adjudged by a court of competent jurisdiction to be due, with all costs,
penalties and interest thereon, promptly after such judgment becomes final;
provided, however, in any event each such contest shall be concluded and the
contested Impositions must be paid by Extreme prior to the earlier of (i) the
date that any criminal prosecution is instituted or overtly threatened against
BNPLC or its directors, officers or employees because of the nonpayment thereof
or (ii) the date any writ or order is issued under which any property owned or
leased by BNPLC (including the Property) may be seized or sold or any other
action is taken against BNPLC or against any property owned or leased by BNPLC
because of the nonpayment thereof, or (iii) any Designated Sale Date upon which,
for any reason, Extreme or an Affiliate of Extreme or any Applicable Purchaser
shall not purchase BNPLC's interest in the Property pursuant to the Purchase
Agreement for a price to BNPLC (when taken together with any additional payments
made by Extreme pursuant to Paragraph 1(A)(2) of the Purchase Agreement, in the
                            -----------------
case of a purchase by an Applicable Purchaser) equal to the Break Even Price.

          (b)  Increased Costs; Capital Adequacy Charges. Subject only to the
               -----------------------------------------
exceptions listed in subparagraph 5.(d) below:

          (i)  If after the Effective Date there shall be any increase in the
     cost to BNPLC's Parent or any other Participant agreeing to make or making,
     funding or maintaining advances to BNPLC in connection with the Property
     because of any Banking Rules Change, then Extreme shall from time to time,
     pay to BNPLC for the account of BNPLC's Parent or such other Participant,
     as the case may be, additional amounts sufficient to compensate BNPLC's
     Parent or the Participant for such increased cost. An increase in costs
     resulting from any imposition or increase of reserve requirements
     applicable to Collateral held from time to time by BNPLC's Parent or other
     Participants pursuant to the Pledge Agreement would be an increase covered
     by the preceding sentence. A certificate as to the amount of such increased
     cost, submitted to BNPLC and Extreme by BNPLC's Parent or the other
     Participant, shall be conclusive and binding upon Extreme, absent clear and
     demonstrable error.

          (ii) BNPLC's Parent or any other Participant may demand additional
     payments ("Capital Adequacy Charges") if BNPLC's Parent or the other
     Participant determines that any Banking Rules Change affects the amount of
     capital to be maintained by it and that the amount of such capital is
     increased by or based upon the existence of advances made or to be made to
     BNPLC to permit BNPLC to maintain BNPLC's investment in the Property. To
     the extent that BNPLC's Parent or another Participant demands Capital
     Adequacy Charges as compensation for the additional capital requirements
     reasonably allocable to such investment or advances, Extreme shall pay to
     BNPLC for the account of BNPLC's Parent or the other Participant, as the
     case may be, the amount so demanded. Without limiting the foregoing, BNPLC
     and

[Improvements]
                                     -10-
<PAGE>

     Extreme hereby acknowledge and agree that the provisions for calculating
     Base Rent set forth herein reflect the assumption that the Pledge Agreement
     will cause a zero percent (0%) risk weight to be assigned to a percentage
     (equal to the Collateral Percentage) of the collective investment of BNPLC
     and the Participants in the Property pursuant to 12 Code of Federal
     Regulations, part 225, as from time to time supplemented or amended, or
     pursuant to any other similar or successor statute or regulation applicable
     to BNPLC and the Participants. If and so long as such risk weight is
     increased above the assumed amount of zero percent (0%) because of a
     Banking Rules Change, Capital Adequacy Charges may be collected to yield
     the same rate of return to BNPLC, BNPLC's Parent and any other Participants
     (net of their costs of maintaining required capital) that they would have
     enjoyed from this Improvements Lease absent such increase.

          (iii)     Notwithstanding the foregoing provisions of this
     subparagraph 5.(b), Extreme shall not be obligated pay any claim for
     compensation pursuant to this subparagraph 5.(b) arising or accruing more
     than six months prior to the date Extreme is notified that BNPLC or a
     Participant intends to make the claim; provided, however, that Extreme
     shall not be excused by this subparagraph from providing such compensation
     for any period during which notice on behalf of BNPLC or the Participant,
     as the case may be, could not be provided because of the retroactive
     application of the statute, regulation or other basis for the claim.

          (iv)     Any amount required to be paid by Extreme under this
     subparagraph 5.(b) shall be due fifteen days after a notice requesting such
     payment is received by Extreme.

          (c)      Extreme's Payment of Other Losses; General Indemnification.
                   ----------------------------------------------------------
Subject only to the exceptions listed in subparagraph 5.(d) below:

          (i)       All Losses (including Environmental Losses) asserted against
     or incurred or suffered by BNPLC or other Interested Parties at any time
     and from time to time by reason of, in connection with or arising out of
     (A) their ownership or alleged ownership of any interest in the Property or
     the Rents, (B) the use and operation of the Property, (C) the negotiation,
     administration or enforcement of the Operative Documents, (D) the making of
     Funding Advances, (E) any construction undertaken by Extreme or others on
     its behalf on or about the Property, (F) any Premises Lease, (G) the breach
     by Extreme of this Improvements Lease or any other document executed by
     Extreme in connection herewith, (H) any failure of the Property or Extreme
     itself to comply with Applicable Laws, (I) Permitted Encumbrances, (J)
     Hazardous Substance Activities, including those occurring prior to
     Effective Date, (K) any obligations under the Acquisition Contract that
     survive the closing under the Acquisition Contract, or (L) any bodily or
     personal injury or death or property damage occurring in or upon or in the
     vicinity of the Property through any cause whatsoever, shall be paid by
     Extreme, and Extreme shall indemnify and defend BNPLC and other Interested
     Parties from and against all such Losses.

          (ii)      THE INDEMNITIES AND RELEASES PROVIDED HEREIN FOR THE BENEFIT
     OF BNPLC AND OTHER INTERESTED PARTIES, INCLUDING THE INDEMNITY SET FORTH IN
        -----           -          -
     THE PRECEDING SUBPARAGRAPH 5.(c)(i), SHALL APPLY EVEN IF AND WHEN THE
     SUBJECT MATTERS OF THE INDEMNITIES AND RELEASES ARE CAUSED BY OR ARISE OUT
     OF THE NEGLIGENCE OR STRICT LIABILITY OF BNPLC OR ANOTHER INTERESTED PARTY.
                                              -----            -          -
     FURTHER, SUCH INDEMNITIES AND RELEASES WILL APPLY EVEN IF INSURANCE
     OBTAINED BY EXTREME OR REQUIRED OF EXTREME BY THIS IMPROVEMENTS LEASE OR
                                                        -            -
     OTHER OPERATIVE DOCUMENTS IS NOT ADEQUATE TO COVER LOSSES AGAINST OR FOR
           -         -                                  -
     WHICH THE INDEMNITIES AND RELEASES ARE

[Improvements]

                                     -11-
<PAGE>

     PROVIDED. EXTREME'S LIABILITY, HOWEVER, FOR ANY FAILURE TO OBTAIN INSURANCE
     REQUIRED BY THIS IMPROVEMENTS LEASE OR OTHER OPERATIVE DOCUMENTS WILL NOT
                      -            -              -         -
     BE LIMITED TO LOSSES AGAINST WHICH INDEMNITIES ARE PROVIDED HEREIN, IT
                   -
     BEING UNDERSTOOD THAT SUCH INSURANCE IS INTENDED TO DO MORE THAN PROVIDE A
     SOURCE OF PAYMENT FOR LOSSES AGAINST WHICH BNPLC AND OTHER INTERESTED
                           -                    -----           -
     PARTIES ARE ENTITLED TO INDEMNIFICATION BY THIS IMPROVEMENTS LEASE.
     -                                               -            -

          (iii)     Costs and expenses for which Extreme shall be responsible
     pursuant to this subparagraph 5.(c) will include appraisal fees, filing and
     recording fees, inspection fees, survey fees, taxes, brokerage fees and
     commissions, abstract fees, title policy fees, Uniform Commercial Code
     search fees, escrow fees and Attorneys' Fees incurred by BNPLC with respect
     to the Property, whether such costs and expenses are incurred at the time
     of execution of this Improvements Lease or at any time during the Term.

          (iv)      Extreme's obligations under this subparagraph 5.(c) shall
     survive the termination or expiration of this Improvements Lease. Any
     amount to be paid by Extreme under this subparagraph 5.(c) shall be due
     fifteen days after a notice requesting such payment is received by Extreme.

          (v)       If an Interested Party notifies Extreme of any claim or
     proceeding included in, or any investigation or allegation concerning,
     Losses for which Extreme is responsible pursuant to this subparagraph
     5.(c), Extreme shall assume on behalf of the Interested Party and conduct
     with due diligence and in good faith the investigation and defense thereof
     and the response thereto with counsel selected by Extreme, but reasonably
     satisfactory to the Interested Party; provided, that the Interested Party
     shall have the right to be represented by advisory counsel of its own
     selection and at its own expense; and provided further, that if any such
     claim, proceeding, investigation or allegation involves both Extreme and
     the Interested Party and the Interested Party shall have reasonably
     concluded that there are legal defenses available to it which are
     inconsistent with or in addition to those available to Extreme, then the
     Interested Party shall have the right to select separate counsel to
     participate in the investigation and defense of and response to such claim,
     proceeding, investigation or allegation on its own behalf, and Extreme
     shall pay or reimburse the Interested Party for all Attorney's Fees
     incurred by the Interested Party because of the selection of such separate
     counsel. If Extreme fails to assume promptly (and in any event within
     fifteen days after being notified of the applicable claim, proceeding,
     investigation or allegation) the defense of the Interested Party, then the
     Interested Party may contest (or settle, with the prior consent of Extreme,
     which consent will not be unreasonably withheld) the claim, proceeding,
     investigation or allegation at Extreme's expense using counsel selected by
     the Interested Party. Moreover, if any such failure by Extreme continues
     for forty-five days or more after Extreme is notified of any such claim,
     proceeding, investigation or allegation, the Interested Party may elect not
     to contest or continue contesting the same and instead, in accordance with
     the written advice of counsel, settle (or pay in full) all claims related
     thereto without Extreme's consent and without releasing Extreme from any
     obligations to the Interested Party under this subparagraph 5.(c).

          (d)       Exceptions and Qualifications to Indemnities.
                    --------------------------------------------

          (i)       BNPLC acknowledges and agrees that nothing in subparagraph
     4.(a) or the preceding subparagraphs of this Paragraph 5 shall be construed
     to require Extreme to pay or reimburse (w) any costs or expenses incurred
     by any Interested Party (including BNPLC or any transferee of BNPLC) to
     accomplish any Permitted Transfers described in clauses (1), (2), (3), (4)
     or (6) of the definition thereof in the Common Definitions and Provisions
     Agreement (Improvements), (x) Excluded Taxes, (y) Losses

[Improvements]

                                     -12-
<PAGE>

     incurred or suffered by any Interested Party that are proximately caused by
     (and attributed by any applicable principles of comparative fault to) the
     Established Misconduct of that Interested Party, or (z) Losses incurred or
     suffered in connection with the execution of the Participation Agreement or
     Pledge Agreement by Participants (or supplements making them parties
     thereto) or in connection with any negotiation or due diligence
     Participants may undertake before entering into the Participation Agreement
     or Pledge Agreement. Further, without limiting BNPLC's rights (as provided
     in other provisions of this Improvements Lease and other Operative
     Documents) to include the following in the calculation of Stipulated Loss
     Value and the Break Even Price (as applicable) or to collect Base Rent, a
     Supplemental Payment and other amounts, the calculation of which depends
     upon Stipulated Loss Value or the Break Even Price, BNPLC acknowledges and
     agrees that nothing in subparagraph 4.(a) or the preceding subparagraphs of
     this Paragraph 5 shall be construed to require Extreme to pay or reimburse
     an Interested Party for costs paid by BNPLC with the proceeds of the
     Initial Funding Advance as part of the Transaction Expenses.

     Further, if an Interested Party receives a written notice of Losses that
     such Interested Party believes are covered by the indemnity in subparagraph
     5.(c)(i), then such Interested Party will be expected to promptly furnish a
     copy of such notice to Extreme. The failure to so provide a copy of the
     notice to Extreme shall not excuse Extreme from its obligations under
     subparagraph 5.(c)(i); provided, that if Extreme is unaware of the matters
     described in the notice and such failure renders unavailable defenses that
     Extreme might otherwise assert, or precludes actions that Extreme might
     otherwise take, to minimize its obligations, then Extreme shall be excused
     from its obligation to indemnify such Interested Party (and any Affiliate
     of such Interested Party) against the Losses, if any, which would not have
     been incurred or suffered but for such failure. For example, if BNPLC fails
     to provide Extreme with a copy of a notice of an obligation covered by the
     indemnity set out in subparagraph 5.(c)(i) and Extreme is not otherwise
     already aware of such obligation, and if as a result of such failure BNPLC
     becomes liable for penalties and interest covered by the indemnity in
     excess of the penalties and interest that would have accrued if Extreme had
     been promptly provided with a copy of the notice, then Extreme will be
     excused from any obligation to BNPLC (or any Affiliate of BNPLC) to pay the
     excess.
     6    Initial Renovations.

          (a)  Funds Advanced to Extreme From the Initial Funding Advance. As
               ----------------------------------------------------------
provided in the definition of Initial Funding Advance in the Common Definitions
and Provisions Agreement, the Initial Funding Advance includes a sum paid to
Extreme, which Extreme will expend for BNPLC, to cover the cost of renovating,
remodeling, improving and furnishing existing Improvements as described
generally in Schedule 2 (collectively, the "Initial Renovations"). The Initial
Renovations shall become and remain part of the Improvements and owned by BNPLC
as provided herein. To the extent, if any, that funds received by Extreme from
the Initial Funding Advance for the Initial Renovations exceed the actual cost
thereof, such excess shall for the benefit of BNPLC be paid by Extreme to BNPLC
(with a notice designating such payment as a Qualified Prepayment made pursuant
to this subparagraph) no later than the first day of the first Base Rent Period
to commence after the first anniversary of the Effective Date.

          (b)  Quality and Timing of the Initial Renovations. Any Initial
               ---------------------------------------------
Renovations that Extreme elects to undertake must be completed by Extreme no
later than the first anniversary of the Effective Date (a) in a safe and good
and workmanlike manner, (b) in accordance with Applicable Laws, (c) in
compliance with (i) the other provisions of this Lease, (ii) the material
provisions of the Permitted Encumbrances and (iii) the material provisions of
the Development Documents, and (d) in a manner that, upon completion and taken
as a whole, enhances the value of the Property by an amount commensurate with
the funds from the Initial Funding Advance used by Extreme to pay the cost
thereof.

[Improvements]

                                     -13-
<PAGE>

          (c)       Control of Work. Subject to the other terms and conditions
                    ---------------
set forth in this Lease, Extreme shall have the sole right to initiate and
control all Initial Renovations undertaken by it, including the means, methods,
sequences and procedures implemented to accomplish the design and construction
involved in making the Initial Renovations.

          (d)       Adequacy of Drawings, Specifications and Budgets. BNPLC has
                    ------------------------------------------------
made and will make no representations as to the adequacy of any budgets, site
plans, renderings, plans, drawings or specifications for the Initial
Renovations, and no modification of any such budgets, site plans, renderings,
plans, drawings or specifications that may be required from time to time will
entitle Extreme to any adjustment in the amount that has been paid to Extreme as
described in the definition of Initial Funding Advance in the Common Definitions
and Provisions Agreement.

          (e)       Existing Condition of the Land and Improvements. Extreme is
                    -----------------------------------------------
familiar with the conditions of the Land and any existing Improvements on the
Land. Extreme shall have no claim for damages against BNPLC or for any
additional payment from BNPLC by reason of any condition (concealed or
otherwise) of or affecting the Land or Improvements.

          (f        Clean Up. Upon the completion of all such work, Extreme will
                    --------
remove all waste material and rubbish from and about the Land, as well as all
tools, construction equipment, machinery and surplus materials. Extreme will
keep the Land and the Improvements thereon in a reasonably safe and sightly
condition as such work progresses.

          (g        No Damage for Delays. Extreme shall have no claim for
                    --------------------
damages against BNPLC or for any additional payment from BNPLC by reason of any
delay in the work required to accomplish the Initial Renovations. Nor shall
Extreme have any claim for an extension of the deadline specified in
subparagraph 6.(b) for completing any Initial Renovations because of any such
period of delay, unless, however, such delay has been caused by BNPLC's
intentional interference with such work. In the event (and only to the extent)
that any such intentional interference by BNPLC continues after Extreme provides
written notice to cease, Extreme shall be entitled to an extension of such
deadline. BNPLC's exercise of its rights and remedies permitted under this Lease
or the other Operative Documents will not be construed as intentional
interference with Extreme's performance of any such work.

          (h        No Fee For Construction Management. Extreme shall have no
                    ----------------------------------
claim for any fee or other compensation or for any reimbursement of internal
administrative or overhead expenses of Extreme by reason of the Initial
Renovations (or any other services provided by Extreme under this Lease or other
Operative Documents), it being understood that Extreme is executing this Lease
in consideration of the rights expressly granted to it herein. Further, for
purposes of calculating any Qualified Prepayment that Extreme must make as
described in subparagraph 6.(a), no such fee or other compensation or internal
administrative or overhead expenses of Extreme shall be included in the actual
costs of any Initial Renovations.

     7.   Status of Property Acquired With Funds Provided by BNPLC. All
Improvements constructed during the term of this Improvements Lease shall be
owned by BNPLC and shall constitute "Property" covered by this Improvements
Lease. Further, to the extent heretofore or hereafter acquired (in whole or in
part) with any portion of the Initial Funding Advance or with other funds for
which Extreme has received or hereafter receives reimbursement from the Initial
Funding Advance, all furnishings, furniture, chattels, permits, licenses,
franchises, certificates and other personal property of whatever nature shall
have been acquired on behalf of BNPLC by Extreme, shall be owned by BNPLC and
shall constitute "Property" covered by this Improvements

[Improvements]

                                     -14-
<PAGE>

Lease, as shall all renewals or replacements of or substitutions for any such
Property. Extreme shall not authorize or permit the transfer of title to the
Improvements or to any other such Property to pass through Extreme or Extreme's
Affiliates before it is transferred to BNPLC from contractors, suppliers,
vendors or other third Persons. Nothing herein shall constitute authorization of
Extreme, as agent, to bind BNPLC to any construction contract or other agreement
with a third Person, but any construction contract or other agreement executed
by Extreme for the acquisition or construction of Improvements or other
components of the Property may provide for the transfer of title as required by
the preceding sentence. Upon request of BNPLC, Extreme shall deliver to BNPLC an
inventory describing all significant items of Personal Property (and, in the
case of tangible personal property, showing the make, model, serial number and
location thereof) other than Improvements, with a certification by Extreme that
such inventory is true and complete and that all items specified in the
inventory are covered by this Improvements Lease free and clear of any Lien
other than the Permitted Encumbrances or Liens Removable by BNPLC.

     8.   Environmental.

          (a        Environmental Covenants by Extreme. Extreme covenants that:
                    ----------------------------------

                    (i       Extreme shall not conduct or permit others to
     conduct Hazardous Substance Activities, except Permitted Hazardous
     Substance Use and Remedial Work.

                    (ii       Extreme shall not discharge or permit the
     discharge of anything on or from the Property that would require any permit
     under applicable Environmental Laws, other than (1) storm water runoff, (2)
     waste water discharges through a publicly owned treatment works, (3)
     discharges that are a necessary part of any Remedial Work, and (4) other
     similar discharges consistent with the definition herein of Permitted
     Hazardous Substance Use, in each case in strict compliance with
     Environmental Laws.

                    (iii      Following any discovery that Remedial Work is
     required by Environmental Laws or otherwise believed by BNPLC to be
     reasonably required, and to the extent not inconsistent with the other
     provisions of this Improvements Lease, Extreme shall promptly perform and
     diligently and continuously pursue such Remedial Work, in each case in
     strict compliance with Environmental Laws.

                    (iv       If requested by BNPLC in connection with any
     Remedial Work required by this subparagraph, Extreme shall retain
     independent environmental consultants acceptable to BNPLC to evaluate any
     significant new information generated during Extreme's implementation of
     the Remedial Work and to discuss with Extreme whether such new information
     indicates the need for any additional measures that Extreme should take to
     protect the health and safety of persons (including employees, contractors
     and subcontractors and their employees) or to protect the environment.
     Extreme shall implement any such additional measures to the extent required
     with respect to the Property by Environmental Laws or otherwise believed by
     BNPLC to be reasonably required and to the extent not inconsistent with the
     other provisions of this Improvements Lease.

          (b        Right of BNPLC to do Remedial Work Not Performed by Extreme.
                    -----------------------------------------------------------
If Extreme's failure to cure any breach of the covenants set forth in
subparagraph 8.(a) continues beyond the Environmental Cure Period (as defined
below), BNPLC may, in addition to any other remedies available to it, conduct
all or any part of the Remedial Work. To the extent that Remedial Work is done
by BNPLC pursuant to the preceding sentence (including any removal of Hazardous
Substances), the cost thereof shall be a demand obligation owing by Extreme to
BNPLC. As used in this subparagraph, "Environmental Cure Period" means the
period ending on the earlier of: (1) one hundred eighty days after Extreme is
notified of the breach which must be cured within such period, (2) the date that
any writ or order is issued for the levy or sale of any property owned by BNPLC
(including the Property) because of such breach, (3) the date that any criminal
action is instituted or overtly threatened against

[Improvements]
                                     -15-
<PAGE>

BNPLC or any of its directors, officers or employees because of such breach, or
(4) any Designated Sale Date upon which, for any reason, Extreme or an Affiliate
of Extreme or any Applicable Purchaser shall not purchase BNPLC's interest in
the Property pursuant to the Purchase Agreement for a net price to BNPLC (when
taken together with any Supplemental Payment made by Extreme pursuant to
Paragraph 1(A)(2) of the Purchase Agreement, in the case of a purchase by an
-----------------
Applicable Purchaser) equal to Stipulated Loss Value.

               (c   Environmental Inspections and Reviews. BNPLC reserves the
                    -------------------------------------
right to retain environmental consultants to review any environmental report
prepared by Extreme or to conduct BNPLC's own investigation to confirm whether
Extreme is complying with the requirements of this Paragraph 8. Extreme grants
to BNPLC and to BNPLC's agents, employees, consultants and contractors the right
to enter upon the Property during reasonable hours and after reasonable notice
to inspect the Property and to perform such tests as BNPLC deems necessary or
appropriate to review or investigate Hazardous Substances in, on, under or about
the Property or any discharge or suspected discharge of Hazardous Substances
into groundwater or surface water from the Property. Extreme shall promptly
reimburse BNPLC for the fees of its environmental consultants and the costs of
any such inspections and tests; provided, however, BNPLC's right to such
reimbursement shall be limited to the following circumstances: (1) a breach of
this Paragraph 8 by Extreme shall, in fact, have occurred or an Event of Default
shall have occurred and be continuing at the time BNPLC engages the consultants
or first initiates the inspections and tests; (2) BNPLC shall have engaged the
consultants or undertaken the tests and inspections to establish the condition
of the Property just prior to any conveyance of the Property pursuant to the
Option Agreement or to the expiration of this Improvements Lease; (3) BNPLC
shall have engaged the consultants or undertaken the inspections and tests to
satisfy any regulatory requirements applicable to BNPLC or its Affiliates; or
(4) BNPLC shall have engaged the consultants or undertaken the tests because
BNPLC was notified of a violation of Environmental Laws concerning the Property
by any governmental authority or owner of other land in the vicinity of the
Land.

               (d   Communications Regarding Environmental Matters.
                    ----------------------------------------------

                    (i     Extreme shall immediately advise BNPLC of (1) any
          discovery of any event or circumstance which would render any of the
          representations of Extreme herein or in the Closing Certificate
          concerning environmental matters materially inaccurate or misleading
          if made at the time of such discovery and assuming that Extreme was
          aware of all relevant facts, (2) any Remedial Work (or change in
          Remedial Work) required or undertaken by Extreme or its Affiliates in
          response to any (A) discovery of any Hazardous Substances on, under or
          about the Property other than Permitted Hazardous Substances or (B)
          any claim for damages resulting from Hazardous Substance Activities,
          (3) Extreme's discovery of any occurrence or condition on any real
          property adjoining or in the vicinity of the Property which could
          cause the Property or any part thereof to be subject to any ownership,
          occupancy, transferability or use restrictions under Environmental
          Laws, or (4) any investigation or inquiry of any failure or alleged
          failure by Extreme to comply with Environmental Laws affecting the
          Property by any governmental authority responsible for enforcing
          Environmental Laws. In such event, Extreme shall deliver to BNPLC
          within thirty days after BNPLC's request, a preliminary written
          environmental plan setting forth a general description of the action
          that Extreme proposes to take with respect thereto, if any, to bring
          the Property into compliance with Environmental Laws or to correct any
          breach by Extreme of this Paragraph 8, including any proposed Remedial
          Work, the estimated cost and time of completion, the name of the
          contractor and a copy of the construction contract, if any, and such
          additional data, instruments, documents, agreements or other materials
          or information as BNPLC may request.

                    (ii    Extreme shall provide BNPLC with copies of all
          material written communications with federal, state and local
          governments, or agencies relating to the matters listed in the
          preceding clause

[Improvements]

                                     -16-
<PAGE>

          (i). Extreme shall also provide BNPLC with copies of any
          correspondence from third Persons which threaten litigation over any
          significant failure or alleged significant failure of Extreme to
          maintain or operate the Property in accordance with Environmental
          Laws.

                    (iii   Prior to Extreme's submission of a Material
          Environmental Communication to any governmental or regulatory agency
          or third party, Extreme shall, to the extent practicable, deliver to
          BNPLC a draft of the proposed submission (together with the proposed
          date of submission), and in good faith assess and consider any
          comments of BNPLC regarding the same. Promptly after BNPLC's request,
          Extreme shall meet with BNPLC to discuss the submission, shall provide
          any additional information requested by BNPLC and shall provide a
          written explanation to BNPLC addressing the issues raised by comments
          (if any) of BNPLC regarding the submission, including a reasoned
          analysis supporting any decision by Extreme not to modify the
          submission in accordance with comments of BNPLC.

          9.   Insurance Required and Condemnation.

               (a   Liability Insurance. Throughout the Term Extreme shall
                    -------------------
maintain commercial general liability insurance against claims for bodily and
personal injury, death and property damage occurring in or upon or resulting
from any occurrence in or upon the Property under one or more insurance policies
that satisfy the requirements set forth in Exhibit B. Extreme shall deliver and
                                           ---------
maintain with BNPLC for each liability insurance policy required by this
Improvements Lease written confirmation of the policy and the scope of the
coverage provided thereby issued by the applicable insurer or its authorized
agent, which confirmation must also satisfy the requirements set forth in
Exhibit B.
---------

               (b   Property Insurance. Throughout the Term Extreme will keep
                    ------------------
all Improvements (including all alterations, additions and changes made to the
Improvements) insured against fire and other casualty under one or more property
insurance policies that satisfy the requirements set forth in Exhibit B. Extreme
                                                              ---------
shall deliver and maintain with BNPLC for each property insurance policy
required by this Improvements Lease written confirmation of the policy and the
scope of the coverage provided thereby issued by the applicable insurer or its
authorized agent, which confirmation must also satisfy the requirements set
forth in Exhibit B. If any of the Property is destroyed or damaged by fire,
         ---------
explosion, windstorm, hail or by any other casualty against which insurance
shall have been required hereunder, (i) BNPLC may, but shall not be obligated
to, make proof of loss if not made promptly by Extreme after notice from BNPLC,
(ii) each insurance company concerned is hereby authorized and directed to make
payment for such loss directly to BNPLC for application as required by Paragraph
10, and (iii) BNPLC may settle, adjust or compromise any and all claims for
loss, damage or destruction under any policy or policies of insurance (provided,
that if any such claim is for less than $500,000, if no Event of Default shall
have occurred and be continuing, Extreme shall have the right to settle, adjust
or compromise the claim as Extreme deems appropriate; and, provided further,
that so long as no Event of Default shall have occurred and be continuing, BNPLC
must provide Extreme with at least forty-five days notice of BNPLC's intention
to settle any such claim before settling it unless Extreme shall already have
approved of the settlement by BNPLC). If any casualty shall result in damage to
or loss or destruction of the Property, Extreme shall give immediate notice
thereof to BNPLC and Paragraph 10 shall apply.

               (c   Failure to Obtain Insurance. If Extreme fails to obtain any
                    ---------------------------
insurance or to provide confirmation of any such insurance as required by this
Improvements Lease, BNPLC shall be entitled (but not required) to obtain the
insurance that Extreme has failed to obtain or for which Extreme has not
provided the required confirmation and, without limiting BNPLC's other remedies
under the circumstances, BNPLC may require Extreme to reimburse BNPLC for the
cost of such insurance and to pay interest thereon computed at the Default Rate
from the date such cost was paid by BNPLC until the date of reimbursement by
Extreme.

[Improvements]

                                     -17-
<PAGE>

               (d   Condemnation. Immediately upon obtaining knowledge of the
                    ------------
institution of any proceedings for the condemnation of the Property or any
portion thereof, or any other similar governmental or quasi-governmental
proceedings arising out of injury or damage to the Property or any portion
thereof, each party shall notify the other (provided, however, BNPLC shall have
no liability for its failure to provide such notice) of the pendency of such
proceedings. Extreme shall, at its expense, diligently prosecute any such
proceedings and shall consult with BNPLC, its attorneys and experts and
cooperate with them as requested in the carrying on or defense of any such
proceedings. All proceeds of condemnation awards or proceeds of sale in lieu of
condemnation with respect to the Property and all judgments, decrees and awards
for injury or damage to the Property shall be paid to BNPLC as Escrowed
Proceeds, and all such proceeds will be applied as provided in Paragraph 10.
BNPLC is hereby authorized, in the name of Extreme, at any time when an Event of
Default shall have occurred and be continuing, or otherwise with Extreme's prior
consent, to execute and deliver valid acquittances for, and to appeal from, any
such judgment, decree or award concerning condemnation of any of the Property.
BNPLC shall not be in any event or circumstances liable or responsible for
failure to collect, or to exercise diligence in the collection of, any such
proceeds, judgments, decrees or awards.

          10.  Application of Insurance and Condemnation Proceeds.

               (a   Collection and Application of Insurance and Condemnation
                    --------------------------------------------------------
Proceeds Generally. This Paragraph 10 shall govern the application of proceeds
------------------
received by BNPLC or Extreme during the Term from any third party (1) under any
property insurance policy as a result of damage to the Property (including
proceeds payable under any insurance policy covering the Property which is
maintained by Extreme), (2) as compensation for any restriction placed upon the
use or development of the Property or for the condemnation of the Property or
any portion thereof, or (3) because of any judgment, decree or award for injury
or damage to the Property; excluding, however, any funds paid to BNPLC by
BNPLC's Parent, by an Affiliate of BNPLC or by any Participant that is made to
compensate BNPLC for any Losses BNPLC may suffer or incur in connection with
this Improvements Lease or the Property. Except as provided in subparagraph
10.(d), Extreme will promptly pay over to BNPLC any insurance, condemnation or
other proceeds covered by this Paragraph 10 which Extreme may receive from any
insurer, condemning authority or other third party. All proceeds covered by this
Paragraph 10, including those received by BNPLC from Extreme or third parties,
shall be applied as follows:

                    (i   First, proceeds covered by this Paragraph 10 will be
          used to reimburse BNPLC for any costs and expenses, including
          Attorneys' Fees, that BNPLC incurred to collect the proceeds.

                    (ii  Second, the proceeds remaining after such reimbursement
          to BNPLC (hereinafter, the "Remaining Proceeds") will be applied, as
          hereinafter more particularly provided, either as a Qualified
          Prepayment or to reimburse Extreme or BNPLC for the actual out-of-
          pocket costs of repairing or restoring the Property. Until, however,
          any Remaining Proceeds received by BNPLC are applied by BNPLC as a
          Qualified Prepayment or applied by BNPLC to reimburse costs of repairs
          to or restoration of the Property pursuant to this Paragraph 10, BNPLC
          shall hold and maintain such Remaining Proceeds as Escrowed Proceeds
          in an interest bearing account, and all interest earned on such
          account shall be added to and made a part of such Escrowed Proceeds.

               (b   Advances of Escrowed Proceeds to Extreme. Except as
                    ----------------------------------------
otherwise provided below in this Paragraph 10, BNPLC shall advance all Remaining
Proceeds held by it as Escrowed Proceeds to reimburse Extreme for the actual
out-of-pocket cost to Extreme of repairing or restoring the Property in
accordance with the requirements of this Improvements Lease and the other
Operative Documents as the applicable repair or restoration progresses and upon
compliance by Extreme with such terms, conditions and requirements as may be
reasonably

[Improvements]

                                     -18-
<PAGE>

imposed by BNPLC. In no event, however, shall BNPLC be required to pay Escrowed
Proceeds to Extreme in excess of the actual out-of-pocket cost to Extreme of the
applicable repair or restoration, as evidenced by invoices or other
documentation satisfactory to BNPLC, it being understood that BNPLC may retain
and apply any such excess as a Qualified Prepayment.

               (c   Application of Escrowed Proceeds as a Qualified Prepayment.
                    ----------------------------------------------------------
Provided that Extreme has completed any Initial Renovations which Extreme elects
to undertake and no Event of Default shall have occurred and be continuing,
BNPLC shall apply any Remaining Proceeds paid to it (or other amounts available
for application as a Qualified Prepayment) as a Qualified Prepayment on any date
that BNPLC is directed to do so by a notice from Extreme; however, if such a
notice from Extreme specifies an effective date for a Qualified Prepayment that
is less than five Business Days after BNPLC's actual receipt of the notice,
BNPLC may postpone the date of the Qualified Prepayment to any date not later
than five Business Days after BNPLC's receipt of the notice. In any event,
except when BNPLC is required by the preceding sentence to apply Remaining
Proceeds or other amounts as a Qualified Prepayment on the last day of a Base
Rent Period, BNPLC may deduct Breakage Costs incurred in connection with any
Qualified Prepayment from the Remaining Proceeds or other amounts available for
application as the Qualified Prepayment, and Extreme will reimburse BNPLC upon
request for any such Breakage Costs that BNPLC incurs but does not deduct.

               (d   Special Provisions Applicable After Completion of Initial
                    ---------------------------------------------------------
Renovations. If, after Extreme has completed any Initial Renovations which
-----------
Extreme elects to undertake, any taking by condemnation of any portion of the
Property or any casualty resulting in the diminution, destruction, demolition or
damage to any portion of the Property shall (in the good faith judgment of
BNPLC) reduce the then current "AS IS" market value by less than $500,000 and
(in the good faith estimation of BNPLC) be unlikely to result in Remaining
Proceeds of more than $500,000, and if no Event of Default shall have occurred
and be continuing, then BNPLC will, upon Extreme's request, instruct the
condemning authority or insurer, as applicable, to pay the Remaining Proceeds
resulting therefrom directly to Extreme. Extreme shall apply any such Remaining
Proceeds to the repair or restoration of the Property to a safe and secure
condition and to a value of no less than the value before taking or casualty.

               (e   Special Provisions Applicable After an Event of Default.
                    -------------------------------------------------------
Notwithstanding the foregoing, when any Event of Default shall have occurred and
be continuing, BNPLC shall be entitled to receive and collect all insurance,
condemnation or other proceeds governed by this Paragraph 10 and to apply all
Remaining Proceeds, when and to the extent deemed appropriate by BNPLC in its
sole discretion, either (A) to the reimbursement of Extreme or BNPLC for the
out-of-pocket cost of repairing or restoring the Property, or (B) as Qualified
Prepayments.

               (f   Extreme's Obligation to Restore. Regardless of the adequacy
                    -------------------------------
of any Remaining Proceeds available to Extreme hereunder, and notwithstanding
other provisions of this Improvements Lease to the contrary, if the Property is
damaged by fire or other casualty or less than all or substantially all of the
Property is taken by condemnation, Extreme must:

               (i   promptly restore or improve the Property or the remainder
         thereof to a value no less than Stipulated Loss Value and to a
         reasonably safe and sightly condition; or

               (ii  promptly restore the Property to a reasonably safe and
         sightly condition and pay to BNPLC for application as a Qualified
         Prepayment the amount (if any), as determined by BNPLC, needed to
         reduce Stipulated Loss Value to no more than the then current "AS IS"
         market value of the Property or remainder thereof.

[Improvements]

                                     -19-
<PAGE>

               (g   Takings of All or Substantially All of the Property. In the
                    ---------------------------------------------------
event of any taking of all or substantially all of the Property, BNPLC shall be
entitled to apply all Remaining Proceeds as a Qualified Prepayment. In addition,
if Stipulated Loss Value immediately prior to any such taking exceeds the sum of
the Remaining Proceeds resulting from such a condemnation, then BNPLC shall be
entitled to recover the excess from Extreme upon demand as an additional
Qualified Prepayment, whereupon this Improvements Lease shall terminate. Any
taking of so much of the Real Property as, in BNPLC's reasonable good faith
judgment, makes it impracticable to restore or improve the remainder thereof as
required by part (ii) of the preceding subparagraph shall be considered a taking
of substantially all the Property for purposes of this Paragraph 10.

          11.  Additional Representations, Warranties and Covenants of Extreme
Concerning the Property. Extreme represents, warrants and covenants as follows:

               (a   Compliance with Covenants and Laws. The use of the Property
                    ----------------------------------
permitted by this Improvements Lease complies, or will comply after Extreme
obtains available permits as the tenant under this Improvements Lease, in all
material respects with all Applicable Laws. Extreme has obtained or will
promptly obtain all utility, building, health and operating permits as may be
required by any governmental authority or municipality having jurisdiction over
the Property for the construction contemplated herein and the use of the
Property permitted by this Improvements Lease.

               (b   Operation of the Property. During the Term, Extreme shall
                    -------------------------
operate the Property in a good and workmanlike manner and substantially in
compliance with all Applicable Laws and will pay or cause to be paid all fees or
charges of any kind in connection therewith. (If Extreme does not promptly
correct any failure of the Property to comply with Applicable Laws that is the
subject of a written notice given to Extreme or BNPLC by any governmental
authority, then for purposes of the preceding sentence, Extreme shall be
considered not to have maintained the Property "substantially in accordance with
Applicable Laws" whether or not the noncompliance would be substantial in the
absence of the notice.) During the Term, Extreme shall not use or occupy, or
allow the use or occupancy of, the Property in any manner which violates any
Applicable Law or which constitutes a public or private nuisance or which makes
void, voidable or cancelable any insurance then in force with respect thereto.
During the Term, to the extent that any of the following would, individually or
in the aggregate, materially and adversely affect the value of the Property or
the use of the Property for purposes permitted by this Improvements Lease,
Extreme shall not, without BNPLC's prior consent: (i) initiate or permit any
zoning reclassification of the Property; (ii) seek any variance under existing
zoning ordinances applicable to the Property; (iii) use or permit the use of the
Property in a manner that would result in such use becoming a nonconforming use
under applicable zoning ordinances or similar laws, rules or regulations; (iv)
execute or file any subdivision plat affecting the Property; or (v) consent to
the annexation of the Property to any municipality. If during the Term (A) a
change in the zoning or other Applicable Laws affecting the permitted use or
development of the Property shall occur that (in BNPLC's good faith judgment)
reduces the value of the Property, or (B) conditions or circumstances on or
about the Property are discovered (such as the presence of an endangered
species) which substantially impede development and thereby (in BNPLC's good
faith judgment) reduce the value of the Property, then Extreme shall upon demand
pay BNPLC an amount equal to such reduction (as determined by BNPLC in good
faith) for application as a Qualified Prepayment. Extreme shall not permit any
drilling or exploration for, or extraction, removal or production of, minerals
from the surface or subsurface of the Property, and Extreme shall not do
anything that could reasonably be expected to significantly reduce the market
value of the Property. If Extreme receives a notice or claim from any federal,
state or other governmental authority that the Property is not in compliance
with any Applicable Law, or that any action may be taken against BNPLC because
the Property does not comply with any Applicable Law, Extreme shall promptly
furnish a copy of such notice or claim to BNPLC.

[Improvements]

                                     -20-
<PAGE>

          Notwithstanding the foregoing, Extreme may in good faith, by
appropriate proceedings, contest the validity and applicability of any
Applicable Law with respect to the Property, and pending such contest Extreme
shall not be deemed in default hereunder because of the violation of such
Applicable Law, if Extreme diligently prosecutes such contest to completion in a
manner reasonably satisfactory to BNPLC, and if Extreme promptly causes the
Property to comply with any such Applicable Law upon a final determination by a
court of competent jurisdiction that the same is valid and applicable to the
Property; provided, however, in any event such contest shall be concluded and
the violation of such Applicable Law must be corrected by Extreme and any claims
asserted against BNPLC or the Property because of such violation must be paid by
Extreme, all prior to the earlier of (i) the date that any criminal prosecution
is instituted or overtly threatened against BNPLC or any of its directors,
officers or employees because of such violation, (ii) the date that any action
is taken by any governmental authority against BNPLC or any property owned by
BNPLC (including the Property) because of such violation, or (iii) a Designated
Sale Date upon which, for any reason, Extreme or an Affiliate of Extreme or any
Applicable Purchaser shall not purchase BNPLC's interest in the Property
pursuant to the Purchase Agreement for a price to BNPLC (when taken together
with any additional payments made by Extreme pursuant to Paragraph 1(A)(2) of
                                                         -----------------
the Purchase Agreement, in the case of a purchase by an Applicable Purchaser)
equal to the Break Even Price.

               (c   Debts for Construction, Maintenance, Operation or
                    -------------------------------------------------
Development. Extreme shall cause all debts and liabilities incurred in the
-----------
construction, maintenance, operation or development of the Property, including
all debts and liabilities for labor, material and equipment and all debts and
charges for utilities servicing the Property, to be promptly paid; provided,
that nothing in this subparagraph will be construed to require Extreme to remove
Liens Removable by BNPLC.

          Notwithstanding the foregoing, Extreme may in good faith, by
appropriate proceedings, contest the validity, applicability or amount of any
asserted mechanic's or materialmen's lien and pending such contest Extreme shall
not be deemed in default under this subparagraph because of the contested lien
if (1) within sixty days after being asked to do so by BNPLC, Extreme bonds over
to BNPLC's reasonable satisfaction all such contested liens against the Property
alleged to secure an amount in excess of $500,000 (individually or in the
aggregate), (2) Extreme diligently prosecutes such contest to completion in a
manner reasonably satisfactory to BNPLC, and (3) Extreme promptly causes to be
paid any amount adjudged by a court of competent jurisdiction to be due, with
all costs and interest thereon, promptly after such judgment becomes final;
provided, however, that in any event each such contest shall be concluded and
the lien, interest and costs must be paid by Extreme prior to the earlier of (i)
the date that any criminal prosecution is instituted or overtly threatened
against BNPLC or its directors, officers or employees because of the nonpayment
thereof, (ii) the date that any writ or order is issued under which the Property
or any other property in which BNPLC has an interest may be seized or sold or
any other action is taken against BNPLC or any property in which BNPLC has an
interest because of the nonpayment thereof, or (iii) a Designated Sale Date upon
which, for any reason, Extreme or an Affiliate of Extreme or any Applicable
Purchaser shall not purchase BNPLC's interest in the Property pursuant to the
Purchase Agreement for a price to BNPLC (when taken together with any additional
payments made by Extreme pursuant to Paragraph 1(A)(2) of the Purchase
                                     -----------------
Agreement, in the case of a purchase by an Applicable Purchaser) equal to the
Break Even Price.

               (d   Repair, Maintenance, Alterations and Additions. Extreme
                    ----------------------------------------------
shall keep the Property in good order, operating condition and appearance and
shall cause all necessary repairs, renewals and replacements to be promptly
made. Extreme will not allow any of the Property to be materially misused,
abused or wasted, and Extreme shall promptly replace any worn-out fixtures and
Personal Property with fixtures and Personal Property comparable to the replaced
items when new. Except as required in connection with Initial Renovations made
in accordance with Paragraph 6, Extreme shall not, without the prior consent of
BNPLC, (i) remove from the Property any fixture or Personal Property having
significant value except such as are replaced by Extreme by fixtures or Personal
Property of equal suitability and value, free and clear of any lien or security
interest (and for purposes of

[Improvements]

                                     -21-
<PAGE>

this clause "significant value" will mean any fixture or Personal Property that
has a value of more than $100,000 or that, when considered together with all
other fixtures and Personal Property removed and not replaced by Extreme by
items of equal suitability and value, has an aggregate value of $500,000 or
more) or (ii) make material new Improvements or alter Improvements in any
material respect. Without limiting the foregoing, Extreme will notify BNPLC
before making any significant alterations to the Improvements after the
completion of any Initial Renovations which Extreme elects to undertake.

               (e   Permitted Encumbrances and Development Documents. Extreme
                    ------------------------------------------------
shall during the Term comply with and will cause to be performed all of the
covenants, agreements and obligations imposed upon the owner of any interest in
the Property by the Permitted Encumbrances (including the Premises Leases) or
the Development Documents. Without limiting the foregoing, Extreme shall cause
all amounts to be paid when due, the payment of which is secured by any Lien
against the Property created by the Permitted Encumbrances. Without the prior
consent of BNPLC, Extreme shall not enter into, initiate, approve or consent to
any modification of any Permitted Encumbrance or Development Document that would
create or expand or purport to create or expand obligations or restrictions
which would encumber BNPLC's interest in the Property. (Whether BNPLC must give
any such consent requested by Extreme during the Term of this Improvements Lease
shall be governed by subparagraph 3(A) of the Closing Certificate and
                     -----------------
Agreement.)

               (f   Books and Records Concerning the Property. Extreme shall
                    -----------------------------------------
keep books and records that are accurate and complete in all material respects
for the Property and, subject to Paragraph 15.(c), will permit all such books
and records (including all contracts, statements, invoices, bills and claims for
labor, materials and services supplied for the construction and operation of any
Improvements) to be inspected and copied by BNPLC. This subparagraph shall not
be construed as requiring Extreme to regularly maintain separate books and
records relating exclusively to the Property; provided, however, that upon
request, Extreme shall construct or abstract from its regularly maintained books
and records information required by this subparagraph relating to the Property.

          12.  Financial Covenants, Reporting Covenants and Other Covenants
Incorporated by Reference to Schedule 1. Throughout the Term of this
                             ----------
Improvements Lease, Extreme shall comply with the requirements of Schedule 1
                                                                  ----------
attached hereto.

          13.  Assignment and Subletting by Extreme.

               (a   BNPLC's Consent Required. Without the prior consent of
                    ------------------------
BNPLC, Extreme shall not assign, transfer, mortgage, pledge or hypothecate this
Improvements Lease or any interest of Extreme hereunder and shall not sublet all
or any part of the Property, by operation of law or otherwise; provided, that
subject to subparagraph 13.(c) below, (I) this provision shall not be construed
to prohibit any Premises Lease described in the Common Definitions and
Provisions Agreement (Improvements) or any transfer or sublease by a lessee
thereunder which is authorized by any Premises Lease, and (II) if (and after)
Extreme completes Initial Renovations, and so long as no Event of Default has
occurred and is continuing: (1) Extreme shall be entitled to sublet no more than
49% (computed on the basis of square footage) of the useable space in then
existing and completed building Improvements, if any, so long as (i) any
sublease by Extreme is made expressly subject and subordinate to the terms
hereof, and (ii) such sublease has a term equal to or less than the remainder of
the then effective Term of this Improvements Lease; and (2) Extreme shall be
entitled to assign or transfer this Improvements Lease or any interest of
Extreme hereunder to an Affiliate of Extreme if both Extreme and its Affiliate
confirm their joint and several liability hereunder by written notice given to
BNPLC.

               (b   Standard for BNPLC's Consent to Assignments and Certain
                    -------------------------------------------------------
Other Matters. Consents and approvals of BNPLC which are required by this
-------------
Paragraph 13 will not be unreasonably withheld or delayed, but

[Improvements]

                                     -21-
<PAGE>

Extreme acknowledges that BNPLC's withholding of such consent or approval shall
be reasonable if BNPLC determines in good faith that (1) giving the approval may
materially increase BNPLC's risk of liability for any existing or future
environmental problem, or (2) giving the approval is likely to increase BNPLC's
administrative burden of complying with or monitoring Extreme's compliance with
the requirements of this Improvements Lease.

               (c   Consent Not a Waiver. No consent by BNPLC to a sale,
                    --------------------
assignment, transfer, mortgage, pledge or hypothecation of this Improvements
Lease or Extreme's interest hereunder, and no assignment or subletting of the
Property or any part thereof in accordance with this Improvements Lease or
otherwise with BNPLC's consent, shall release Extreme from liability hereunder;
and any such consent shall apply only to the specific transaction thereby
authorized and shall not relieve Extreme from any requirement of obtaining the
prior consent of BNPLC to any further sale, assignment, transfer, mortgage,
pledge or hypothecation of this Improvements Lease or any interest of Extreme
hereunder.

          14.  Assignment by BNPLC.

               (a   Restrictions on Transfers. Except by a Permitted Transfer,
                    -------------------------
BNPLC shall not assign, transfer, mortgage, pledge, encumber or hypothecate this
Improvements Lease or the other Operative Documents or any interest of BNPLC in
and to the Property during the Term without the prior consent of Extreme, which
consent Extreme may withhold in its sole discretion. Further, notwithstanding
anything to the contrary herein contained, if withholding taxes are imposed on
the rents and other amounts payable to BNPLC hereunder because of BNPLC's
assignment of this Improvements Lease to any citizen of, or any corporation or
other entity formed under the laws of, a country other than the United States,
Extreme shall not be required to compensate BNPLC or any such assignee for the
withholding tax. If, in breach of this subparagraph, BNPLC transfers the
Property or any part thereof by a conveyance or that does not constitute a
Permitted Transfer, with the result that additional transfer taxes or other
Impositions are assessed against the Property or the owner thereof, BNPLC shall
be required to pay such additional transfer taxes or other Impositions.

               (b   Effect of Permitted Transfer or other Assignment by BNPLC.
                    ---------------------------------------------------------
If, without breaching subparagraph 14.(a), BNPLC sells or otherwise transfers
the Property and assigns to the transferee all of BNPLC's rights under this
Improvements Lease and under the other Operative Documents, and if the
transferee expressly assumes all of BNPLC's obligations under this Improvements
Lease and under the other Operative Documents, then BNPLC shall thereby be
released from any obligations arising after such assumption under this
Improvements Lease or under the other Operative Documents, and Extreme shall
look solely to each successor in interest of BNPLC for performance of such
obligations. (As used in this subparagraph, "Operative Documents" is intended to
mean not only the Operative Documents as defined in the Common Definitions and
Provisions Agreement (Improvements), but also the Operative Documents as defined
in the Other Common Definitions and Provisions Agreement.)

          15.  BNPLC's Right of Access.

               (a   During the Term, BNPLC and BNPLC's representatives may
(subject to subparagraphs 15.(c) and 15.(d)) enter the Property at any
reasonable time after five Business Days advance written notice to Extreme for
the purpose of making inspections or performing any work BNPLC is authorized to
undertake by the next subparagraph or for the purpose confirming whether Extreme
has complied with the requirements of this Improvements Lease or the other
Operative Documents.

               (b   If Extreme fails to perform any act or to take any action
required of it by this Improvements Lease or the Closing Certificate, or to pay
any money which Extreme is required by this

[Improvements]

                                     -23-
<PAGE>

Improvements Lease or the Closing Certificate to pay, and if such failure or
action constitutes an Event of Default or renders BNPLC or any director,
officer, employee or Affiliate of BNPLC at risk of criminal prosecution or
renders BNPLC's interest in the Property or any part thereof at risk of
forfeiture by forced sale or otherwise, then in addition to any other remedies
specified herein or otherwise available, BNPLC may, perform or cause to be
performed such act or take such action or pay such money. Any expenses so
incurred by BNPLC, and any money so paid by BNPLC, shall be a demand obligation
owing by Extreme to BNPLC. Further, BNPLC, upon making such payment, shall be
subrogated to all of the rights of the person, corporation or body politic
receiving such payment. But nothing herein shall imply any duty upon the part of
BNPLC to do any work which under any provision of this Improvements Lease
Extreme may be required to perform, and the performance thereof by BNPLC shall
not constitute a waiver of Extreme's default. BNPLC may during the progress of
any such work permitted by BNPLC hereunder on or in the Property keep and store
upon the Property all necessary materials, tools, and equipment. BNPLC shall not
in any event be liable for inconvenience, annoyance, disturbance, loss of
business, or other damage to Extreme or the subtenants or invitees of Extreme by
reason of making such repairs or the performance of any such work on or in the
Property, or on account of bringing materials, supplies and equipment into or
through the Property during the course of such work (except for any liability in
excess of the liability insurance limits established in Exhibit B resulting from
                                                        ---------
death or injury or damage to the property of third parties caused by the
Established Misconduct of BNPLC or its officers, employees, or agents in
connection therewith), and the obligations of Extreme under this Improvements
Lease shall not thereby be excused in any manner.

          (c   Extreme shall have no obligation to provide proprietary
information (as defined in the next sentence) to BNPLC, except and to the extent
that (1) BNPLC reasonably determines that BNPLC cannot accomplish the purposes
of BNPLC's inspection of the Property or exercise of other rights granted
pursuant to the various express provisions of this Improvements Lease and the
other Operative Documents without evaluating such information. For purposes of
this Improvements Lease "proprietary information" includes Extreme's
intellectual property, trade secrets and other confidential information of value
to Extreme about, among other things, Extreme's manufacturing processes,
products, marketing and corporate strategies, but in no event will "proprietary
information" include any disclosure of substances and materials (and their
chemical composition) which are or previously have been present in, on or under
the Property at the time of any inspections by BNPLC, nor will "proprietary
information" include any additional disclosures reasonably required to permit
BNPLC to determine whether the presence of such substances and materials has
constituted a violation of Environmental Laws. In addition, under no
circumstances shall Extreme have any obligation to disclose to BNPLC or any
other party any proprietary information of Extreme (including, without
limitation, any pending applications for patents or trademarks, any research and
design and any trade secrets) except if and to the limited extent reasonably
necessary to comply with the express provisions of this Improvements Lease or
the other Operative Documents.

          (d   So long as Extreme remains in possession of the Property, BNPLC
or BNPLC's representative will, before making any inspection or performing any
work on the Property authorized by this Improvements Lease, if then requested to
do so by Extreme to maintain Extreme's security: (i) sign in at Extreme's
security or information desk if Extreme has such a desk on the premises, (ii)
wear a visitor's badge or other reasonable identification, (iii) permit an
employee of Extreme to observe such inspection or work, and (iv) comply with
other similar reasonable nondiscriminatory security requirements of Extreme that
do not, individually or in the aggregate, significantly interfere with
inspections or work of BNPLC authorized by this Improvements Lease.

     16.  Events of Default. Each of the following events shall be an "Event of
Default" by Extreme under this Improvements Lease:

[Improvements]

                                     -24-

<PAGE>

          (a   Extreme shall fail to pay when due any installment of Rent due
hereunder and such failure shall continue for three (3) Business Days after
Extreme is notified in writing thereof.

          (b   Extreme shall fail to cause any representation or warranty of
Extreme contained herein or in the Closing Certificate that was false or
misleading in any material respect when made to be made true and not misleading
(other than as described in the other clauses of this Paragraph 16), or Extreme
shall fail to comply with any term, provision or covenant of this Improvements
Lease or of the Closing Certificate (other than as described in the other
clauses of this Paragraph 16), and in either case shall not cure such failure
prior to the earlier of (A) thirty days after written notice thereof is sent to
Extreme or (B) the date any writ or order is issued for the levy or sale of any
property owned by BNPLC (including the Property) or any criminal prosecution is
instituted or overtly threatened against BNPLC or any of its directors, officers
or employees because of such failure; provided, however, that so long as no such
writ or order is issued and no such criminal prosecution is instituted or
overtly threatened, the period within which such failure may be cured by Extreme
shall be extended for a further period (not to exceed an additional sixty days)
as shall be necessary for the curing thereof with diligence, if (but only if)
(x) such failure is susceptible of cure but cannot with reasonable diligence be
cured within such thirty day period, (y) Extreme shall promptly have commenced
to cure such failure and shall thereafter continuously prosecute the curing
thereof with reasonable diligence and (z) the extension of the period for cure
will not, in any event, cause the period for cure to extend beyond five days
prior to the expiration of this Improvements Lease.

          (c   Extreme shall abandon the Property.

          (d   Extreme or any Subsidiary shall fail to make any payment or
payments of principal, premium or interest, of Debt of Extreme described in the
next sentence when due (taking into consideration the time Extreme may have to
cure such failure, if any, under the documents governing such Debt). As used in
this clause 14(a)(v), "Debt" shall include only Debt (as defined in the Common
Definitions and Provisions Agreement (Improvements)) of Extreme or any of its
Subsidiaries now existing or arising in the future (1) payable to any Interested
Party, or (2) payable to any other Person and with respect to which $5,000,000
or more is actually due and payable because of acceleration or otherwise.

          (e   Extreme: (a) shall generally not, or be unable to, or shall admit
in writing its inability to, pay its debts as such debts become due; or (b)
shall make an assignment for the benefit of creditors, petition or apply to any
tribunal for the appointment of a custodian, receiver or trustee for it or a
substantial part of its assets; or (c) shall file any petition or application to
commence any proceeding under any bankruptcy, reorganization, arrangement,
readjustment of debt, dissolution or liquidation law or statute of any
jurisdiction, whether now or hereafter in effect; or (d) shall have had any such
petition or application filed against it; or (e) by any act or omission shall
indicate its consent to, approval of or acquiescence in any such petition,
application or proceeding or order for relief or the appointment of a custodian,
receiver or trustee for all or any substantial part of its property; or (f)
shall suffer any such custodianship, receivership or trusteeship to continue
undischarged for a period of sixty days or more.

          (f   One or more final judgments, decrees or orders for the payment of
money in excess of $5,000,000 in the aggregate shall be rendered against Extreme
and such judgments, decrees or orders shall continue unsatisfied and in effect
for a period of thirty consecutive days without Extreme's having obtained an
agreement (or after the expiration or termination of an agreement) of the
Persons entitled to enforce such judgment, decrees or orders not to enforce the
same pending negotiations with Extreme concerning the satisfaction or other
discharge of the same. (For purposes of this provision, no judgment, decree or
order will be considered "final" until Extreme's right to appeal, if any, shall
have expired or been exhausted.)

[Improvements]

                                     -25-
<PAGE>

          (g   Extreme shall breach the requirements of Paragraph 12, which by
reference to Schedule 1 establishes certain financial covenants and other
             ----------
requirements.

          (h   as of the effective date of this Improvements Lease, any of the
representations or warranties of Extreme contained in subparagraphs 2(A) - (K)
of the Closing Certificate shall be false or misleading in any material respect.

          (i   Extreme shall fail to pay the full amount of any Supplemental
Payment required by the Purchase Agreement on the Designated Sale Date.

          (j   Extreme shall fail to comply with any term, provision or
condition of the Pledge Agreement after the expiration of any applicable notice
and cure period set forth in the Pledge Agreement.

          17.  Remedies.

               (a   Basic Remedies. At any time after an Event of Default and
                    --------------
after BNPLC has given any notice required by subparagraph 17.(b), BNPLC shall be
entitled at BNPLC's option (and without limiting BNPLC in the exercise of any
other right or remedy BNPLC may have, and without any further demand or notice
except as expressly described in this subparagraph 17.(a)), to exercise any one
or more of the following remedies:

                    (i     By notice to Extreme, BNPLC may terminate Extreme's
          right to possession of the Property. A notice given in connection with
          unlawful detainer proceedings specifying a time within which to cure a
          default shall terminate Extreme's right to possession if Extreme fails
          to cure the default within the time specified in the notice.

                    (ii    Upon termination of Extreme's right to possession and
          without further demand or notice, BNPLC may re-enter the Property in
          any manner not prohibited by Applicable Law and take possession of all
          improvements, additions, alterations, equipment and fixtures thereon
          and remove any persons in possession thereof. Any property in the
          Improvements may be removed and stored in a warehouse or elsewhere at
          the expense and risk of and for the account of Extreme.

                    (iii)  Upon termination of Extreme's right to possession,
          this Improvements Lease shall terminate and BNPLC may recover from
          Extreme:

                              a)   The worth at the time of award of the unpaid
               Rent which had been earned at the time of termination;

                              b)   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
               rental loss that Extreme proves could have been reasonably
               avoided;

                              c)   The worth at the time of award of the amount
               by which the unpaid Rent for the balance of the scheduled Term
               after the time of award exceeds the amount of such rental loss
               that Extreme proves could be reasonably avoided; and

                              d)   Any other amount necessary to compensate
               BNPLC for all the detriment proximately caused by Extreme's
               failure to perform Extreme's obligations under this Improvements
               Lease or which in the ordinary course of things would be likely
               to result therefrom, including the

[Improvements]

                                     -26-
<PAGE>

               costs and expenses (including Attorneys' Fees, advertising costs
               and brokers' commissions) of recovering possession of the
               Property, removing persons or property therefrom, placing the
               Property in good order, condition, and repair, preparing and
               altering the Property for reletting, all other costs and expenses
               of reletting, and any loss incurred by BNPLC as a result of
               Extreme's failure to perform Extreme's obligations under the
               other Operative Documents.

               The "worth at the time of award" of the amounts referred to in
               subparagraph 17.(a)(iii)a) and subparagraph 17.(a)(iii)b) shall
               be computed by allowing interest at the Default Rate. The "worth
               at the time of award" of the amount referred to in subparagraph
               17.(a)(iii)c) 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 one percent (1%).

                         e)   Such other amounts in addition to or in lieu of
               the foregoing as may be permitted from time to time by applicable
               California law.

                    (iv) BNPLC shall have the remedy described in California
          Civil Code Section 1951.4 (lessor may continue lease in force even
          after lessee's breach and abandonment and recover rent as it becomes
          due, if lessee has right to sublet or assign, subject only to
          reasonable limitations). Accordingly, even if Extreme has breached
          this Improvements Lease and abandoned the Property, this Improvements
          Lease shall continue in effect for so long as BNPLC does not terminate
          Extreme's right to possession, and BNPLC may enforce all of BNPLC's
          rights and remedies under this Improvements Lease, including the right
          to recover the Rent as it becomes due under this Improvements Lease.
          Extreme's right to possession shall not be deemed to have been
          terminated by BNPLC except pursuant to subparagraph 17.(a)(i) hereof.
          The following shall not constitute a termination of Extreme's right to
          possession:

                         a)   Acts of maintenance or preservation or efforts to
               relet the Property;

                         b)   The appointment of a receiver upon the initiative
               of BNPLC to protect BNPLC's interest under this Improvements
               Lease; or

                         c)   Reasonable withholding of consent to an assignment
               or subletting, or terminating a subletting or assignment by
               Extreme.

               (b)  Notice Required So Long As the Purchase Option and Extreme's
                    ------------------------------------------------------------
Initial Remarketing Rights and Obligations Continue Under the Purchase
----------------------------------------------------------------------
Agreement. So long as Extreme remains in possession of the Property and there
---------
has been no termination of the Purchase Option and Extreme's Initial Remarketing
Rights and Obligations as provided Paragraph 4 of the Purchase Agreement,
                                   -----------
BNPLC's right to exercise remedies provided in subparagraph 17.(a) will be
subject to the condition precedent that BNPLC shall have notified Extreme, at a
time when an Event of Default shall have occurred and be continuing, of BNPLC's
intent to exercise remedies provided in subparagraph 17.(a) at least sixty days
prior to exercising the remedies. The condition precedent is intended to provide
Extreme with an opportunity to exercise the Purchase Option or Extreme's Initial
Remarketing Rights and Obligations before losing possession of the Property
pursuant to subparagraph 17.(a). The condition precedent is not, however,
intended to extend any period for curing an Event of Default. Accordingly, if an
Event of Default has occurred, and regardless of whether any Event of Default is
then continuing, BNPLC may proceed immediately to exercise remedies provided in
subparagraph 17.(a) at any time after the earlier of (i) sixty days after BNPLC
has given such a notice to Extreme, (ii) any date upon which Extreme
relinquishes possession of the Property, or (iii) any termination of the
Purchase Option and Extreme's Initial Remarketing Rights and Obligations.

[Improvements]

                                     -27-
<PAGE>

          (c)  Enforceability. This Paragraph 17 shall be enforceable to the
               --------------
maximum extent not prohibited by Applicable Law, and the unenforceability of any
provision in this Paragraph shall not render any other provision unenforceable.

          (d)  Remedies Cumulative. No right or remedy herein conferred upon or
               -------------------
reserved to BNPLC is intended to be exclusive of any other right or remedy, and
each and every such right and remedy shall be cumulative and in addition to any
other right or remedy given to BNPLC hereunder or now or hereafter existing in
favor of BNPLC under Applicable Law or in equity. In addition to other remedies
provided in this Improvements Lease, BNPLC shall be entitled, to the extent
permitted by Applicable Law or in equity, to injunctive relief in case of the
violation, or attempted or threatened violation, of any of the covenants,
agreements, conditions or provisions of this Improvements Lease, or to a decree
compelling performance of any of the other covenants, agreements, conditions or
provisions of this Improvements Lease to be performed by Extreme, or to any
other remedy allowed to BNPLC at law or in equity. Nothing contained in this
Improvements Lease shall limit or prejudice the right of BNPLC to prove for and
obtain in proceedings for bankruptcy or insolvency of Extreme by reason of the
termination of this Improvements Lease, an amount equal to the maximum allowed
by any statute or rule of law in effect at the time when, and governing the
proceedings in which, the damages are to be proved, whether or not the amount be
greater, equal to, or less than the amount of the loss or damages referred to
above. Without limiting the generality of the foregoing, nothing contained
herein shall modify, limit or impair any of the rights and remedies of BNPLC
under the Purchase Documents, and BNPLC shall not be required to give the sixty
day notice described in subparagraph 17.(b) as a condition precedent to any
acceleration of the Designated Sale Date or to taking any action to enforce the
Purchase Documents.

     18.  Default by BNPLC. If BNPLC should default in the performance of any of
its obligations under this Improvements Lease, BNPLC shall have the time
reasonably required, but in no event less than thirty days, to cure such default
after receipt of notice from Extreme specifying such default and specifying what
action Extreme believes is necessary to cure the default. If Extreme prevails in
any litigation brought against BNPLC because of BNPLC's failure to cure a
default within the time required by the preceding sentence, then Extreme shall
be entitled to an award against BNPLC for the monetary damages proximately
caused to Extreme by such default.

     Notwithstanding the foregoing, BNPLC's right to cure as provided in this
Paragraph 18 will not in any event extend the time within which BNPLC must
remove Liens Removable by BNPLC as required by Paragraph 19 beyond the
Designated Sale Date.

     19.  Quiet Enjoyment. Provided Extreme pays the Base Rent and all
Additional Rent payable hereunder as and when due and payable and keeps and
fulfills all of the terms, covenants, agreements and conditions to be performed
by Extreme hereunder, BNPLC shall not during the Term disturb Extreme's
peaceable and quiet enjoyment of the Property; however, such enjoyment shall be
subject to the terms, provisions, covenants, agreements and conditions of this
Improvements Lease, to Permitted Encumbrances, to Development Documents and to
any other claims not constituting Liens Removable by BNPLC. If any Lien
Removable by BNPLC is claimed against the Property, BNPLC will remove the Lien
Removable by BNPLC promptly. Any breach by BNPLC of this Paragraph shall render
BNPLC liable to Extreme for any monetary damages proximately caused thereby, but
as more specifically provided in subparagraph 4.(b) above, no such breach shall
entitle Extreme to terminate this Improvements Lease or excuse Extreme from its
obligation to pay Rent.

     20.  Surrender Upon Termination. Unless Extreme or an Applicable Purchaser
purchases or has purchased BNPLC's entire interest in the Property pursuant to
the terms of the Purchase Agreement and BNPLC's entire interest in the
Improvements and other "Property" under (and as defined in) the Other Purchase
Agreement,

[Improvements]

                                     -28-
<PAGE>

Extreme shall, upon the termination of Extreme's right to occupancy, surrender
to BNPLC the Property, including Improvements constructed by Extreme and
fixtures and furnishings included in the Property, free of all Hazardous
Substances (including Permitted Hazardous Substances) and tenancies and with all
Improvements in substantially the same condition as of the date the same were
initially completed, excepting only (i) ordinary wear and tear that occurs
between the maintenance, repairs and replacements required by other provisions
of this Improvements Lease or the Other Lease Agreement, and (ii) demolition,
alterations and additions which are expressly permitted by the terms of this
Improvements Lease or the Other Lease Agreement and which have been completed by
Extreme in a good and workmanlike manner in accordance with all Applicable Laws.
Any movable furniture or movable personal property belonging to Extreme or any
party claiming under Extreme, if not removed at the time of such termination and
if BNPLC shall so elect, shall be deemed abandoned and become the property of
BNPLC without any payment or offset therefor. If BNPLC shall not so elect, BNPLC
may remove such property from the Property and store it at Extreme's risk and
expense.

     Nothing in this Paragraph 20 will be construed to require Extreme to
surrender the Property to BNPLC during the continuation of any breach by BNPLC
of any obligation it has under the Purchase Agreement to convey the Property to
Extreme or an Applicable Purchaser.

     21.  Holding Over by Extreme. Should Extreme not purchase BNPLC's right,
title and interest in the Property as provided in the Purchase Agreement, but
nonetheless continue to hold the Property after the termination of this
Improvements Lease without BNPLC's consent, whether such termination occurs by
lapse of time or otherwise, such holding over shall constitute and be construed
as a tenancy from day to day only, at a daily Base Rent equal to: (i) Stipulated
Loss Value on the day in question, times (ii) the Default Rate for such day;
divided by (iii) three hundred and sixty; subject, however, to all of the terms,
provisions, covenants and agreements on the part of Extreme hereunder. No
payments of money by Extreme to BNPLC after the termination of this Improvements
Lease shall reinstate, continue or extend the Term of this Improvements Lease
and no extension of this Improvements Lease after the termination thereof shall
be valid unless and until the same shall be reduced to writing and signed by
both BNPLC and Extreme.

     22.  Independent Obligations Evidenced by the Other Operative Documents.
Extreme acknowledges and agrees that nothing contained in this Improvements
Lease shall limit, modify or otherwise affect any of Extreme's obligations under
the other Operative Documents, which obligations are intended to be separate,
independent and in addition to, and not in lieu of, the obligations set forth
herein. In the event of any inconsistency between the express terms and
provisions of the Purchase Documents and the express terms and provisions of
this Improvements Lease, the express terms and provisions of the Purchase
Documents shall control. In the event of any inconsistency between the express
terms and provisions of the Closing Certificate and the express terms and
provisions of this Improvements Lease, the express terms and provisions of this
Improvements Lease shall control; provided, nothing herein will limit or impair
Extreme's obligations under the Closing Certificate following any expiration of
termination of this Improvements Lease.

                         [The signature pages follow.]

[Improvements]

                                     -29-
<PAGE>

     IN WITNESS WHEREOF, Extreme and BNPLC have caused this Lease Agreement
(Improvements) to be executed as of June 1, 2000.

                                        "Extreme"

                                        EXTREME NETWORKS, INC.

                                        By: _________________________________
                                            Name:____________________________
                                            Title:___________________________
<PAGE>

[Continuation of signature pages to Lease Agreement (Improvements) dated to be
effective June 1, 2000]

                                        "BNPLC"

                                        BNP LEASING CORPORATION

                                        By: _________________________________
                                            Lloyd G. Cox, Vice President
<PAGE>

                                   Exhibit A
                                   ---------

                               Legal Description

All that certain real property situated in the City of Santa Clara, County of
Santa Clara, State of California, described as follows:

Being a portion of that certain 24.740 acre parcel as shown on that certain
Record of Survey filed in Book 447 of Maps, at Page 33, Santa Clara County
Records, described as follows:

Beginning at the Northwest corner of said 24.740 acre parcel; thence from said
point of beginning along the Northerly line of said 24.470 acre parcel N. 89
degrees 25 minutes 00 seconds E. 995.17 feet; thence leaving said Northerly
lines S. 0 degrees 10 minutes 00 seconds W. 705.02 feet to a point in the
Southerly line of said 24.740 acre parcel; thence along said Southerly line the
following courses: S. 89 degrees 25 minutes 00 seconds W. 181.82 feet; S. 2.00
feet and S. 89 degrees 25 minutes 00 seconds W. 760.70 feet; thence leaving said
Southerly line along a tangent curve to the right, with a radius of 50.00 feet,
through a central angle of 90 degrees 34 minutes 33 seconds for an arc length of
79.4 feet to a point in the Westerly line of said 24.470 acre parcel; thence
along said Westerly line N. 0 degrees 00 minutes 27 seconds W. 656.49 feet to
the point of beginning.
<PAGE>

                                   Exhibit B
                                   ---------

                            Insurance Requirements

I.   LIABILITY INSURANCE:

     A.   Extreme must maintain commercial general liability ("CGL") insurance
on an occurrence basis, affording immediate protection to the limit of not less
than $20,000,000 combined single limit for bodily and personal injury, death and
property damage in respect of any one occurrence. The CGL insurance must be
primary to, and shall receive no contribution from, any insurance policies or
self-insurance programs otherwise afforded to or available to the Interested
Parties, collectively or individually. Further, the CGL insurance must include
blanket contractual liability coverage which insures contractual liability under
the indemnifications set forth in this Improvements Lease (though such coverage
or the amount thereof shall in no way limit such indemnifications).

     B.   Any deductible or self-insured retention applicable to the CGL
insurance shall not exceed $500,000.

     C.   The forms of insurance policies (including endorsements) used to
provide the CGL insurance required by this Improvements Lease, and the insurance
company or companies providing the CGL insurance, must be acceptable to BNPLC.
BNPLC shall have the right from time to time and at any time to review and
approve such policy forms (including endorsements) and the insurance company or
companies providing the insurance. Without limiting the generality of the
foregoing, BNPLC may reasonably require (and unless and until Extreme is
otherwise notified by BNPLC, BNPLC does require) that such insurance be provided
under forms and by companies consistent with the following:

          (1)  Forms: CGL Insurance must be provided on Insurance Services
               -----
               Office ("ISO") forms CG 0001 1093 or CG 0001 0196 or equivalent
               substitute forms providing the same or greater coverage.

          (2)  Rating Requirements: Insurance must be provided through insurance
               -------------------
               or reinsurance companies rated by the A.M. Best Company of
               Oldwick, New Jersey as having a policyholder's rating of A or
               better and a reported financial information rating of X or
               better.

          (3)  Required Endorsements: CGL Insurance must be endorsed to provide
               ---------------------
               or include:

               (a)  ISO additional insured form CG 2026 1185 or equivalent
                    substitute form, without modification (and under the
                    commercial umbrella, if any), designating as additional
                    insureds "BNPLC and other Interested Parties, as defined in
                    the Common Definitions and Provisions Agreement
                    (Improvements) between Extreme Networks, Inc. and BNP
                    Leasing Corporation dated June 1, 2000)"; and

               (b)  provisions entitling BNPLC to 30 days' notice from the
                    insurer prior to any cancellation to the CGL coverage.

          (4)  Other Insurance: Each policy to contain standard CGL "other
               ---------------
               insurance" wording, unmodified in any way that would make it
               excess over or contributory with the additional insured's own
               commercial general liability coverage.

[Improvements]

<PAGE>

II.  PROPERTY INSURANCE:

     A.   Extreme must maintain property insurance in "special form" (including
theft) or against "all risks," providing the broadest available coverage for all
Improvements (as defined in the Common Provisions and Definitions Agreement) and
equipment included in the Property, on a blanket basis if multiple buildings are
involved, with no exclusions for vandalism, malicious mischief, or sprinkler
leakage and all coverage perils normally included within the definitions of
extended coverage, vandalism, malicious mischief and, if the Property is in a
flood zone, flood. In addition, boiler and machinery coverage must be maintained
at all times by endorsement to the property insurance policy or by separate
policy.

     B.   The property insurance required hereby must provide coverage in the
amount no less than replacement value (exclusive of land, foundation, footings,
excavations and grading) with endorsements for contingent liability from
operation of building laws, increased cost of construction and demolition costs
which may be necessary to comply with building laws. Subject to the approval of
BNPLC, Extreme will be responsible for determining the amount of property
insurance to be maintained from time to time, but Extreme must maintain such
coverage on an agreed value basis to eliminate the effects of coinsurance.

     C.   Any deductible or self-insured retention applicable to the property
insurance shall not exceed $500,000.

     D.   The property insurance shall cover not only the value of Extreme's
interest in the Improvements, but also the interest of BNPLC, with BNPLC shown
as an insured as its interests may appear.

     E.   The forms of insurance policies (including endorsements) used to
provide the property insurance required by this Improvements Lease, and the
insurance company or companies providing the property insurance, must be
acceptable to BNPLC. BNPLC shall have the right from time to time and at any
time to review and approve such policy forms (including endorsements) and the
insurance company or companies providing such insurance. Without limiting the
generality of the foregoing, BNPLC may reasonably require (and unless and until
Extreme is otherwise notified by BNPLC, BNPLC does require) that such insurance
be provided under forms and by companies consistent with the following:

          (1)  Rating Requirements: Insurance to be provided through insurance
               -------------------
          or reinsurance companies rated by the A.M. Best Company of Oldwick,
          New Jersey as having (a) a policyholder's rating of A or better, (b) a
          reported financial information rating of no less than X, and (c) in
          the case of each insurance or reinsurance company, a reported
          financial information rating which indicates an adjusted
          policyholders' surplus equal to or greater than the underwriting
          exposure that such company has under the insurance or reinsurance it
          is providing for the Property.

          (2)  Required Endorsements: Extreme's property insurance must be
               ---------------------
endorsed to provide or include:

               (a)  a waiver of subrogation in favor of "BNPLC and other
                    Interested Parties, as defined in the Common Definitions and
                    Provisions Agreement (Improvements) between Extreme
                    Networks, Inc. and BNP Leasing Corporation dated June 1,
                    2000)";

               (b)  that Extreme's insurance is primary, with any policies of
                    BNPLC or other Interested Parties being excess, secondary
                    and noncontributing;

               (c)  that the protection afforded to BNPLC by such insurance
                    shall not be reduced or impaired by acts or omissions of
                    Extreme or any other beneficiary or insured; and

                              Exhibit B - Page 2

[Improvements]
<PAGE>

               (d)  that BNPLC must be notified at least thirty days prior to
                    any cancellation of insurance coverage.

III. OTHER INSURANCE RELATED REQUIREMENTS:

     A.   BNPLC must be notified in writing immediately by Extreme of claims
against Extreme that might cause a reduction below seventy-five percent (75%) of
any aggregate limit of any policy.

     B.   Extreme's property insurance must be evidenced by ACORD form 27
"Evidence of Property Insurance" completed and interlineated in a manner
satisfactory to BNPLC to show compliance with the requirements of this Exhibit.
Copies of endorsements to the property insurance must be attached to such form.

     C.   Extreme's CGL insurance must be evidenced by ACORD form 25
"Certificate of Insurance" completed and interlineated in a manner satisfactory
to BNPLC to show compliance with the requirements of this Exhibit. Copies of
endorsements to the CGL insurance must be attached to such form.

     D.   Such evidence of required insurance must be delivered upon execution
of this Improvements Lease and new certificate or evidence of insurance must be
delivered no later than 10 days prior to expiration of existing policy.

     E.   Extreme shall not cancel, fail to renew, or make or permit any
material reduction in any of the policies or certificates described in this
Exhibit without the prior written consent of BNPLC. The certificates (ACORD
forms 27 and 25) described in this Exhibit must contain the following express
provision:

     "This is to certify that the policies of insurance described herein have
     been issued to the insured Extreme Networks, Inc. for whom this certificate
     is executed and are in force at this time. In the event of cancellation of
     coverage affecting the certificate holder, at least thirty days prior
     notice shall be given to the certificate holder."

     F.   The limits of liability under the liability insurance required by this
Improvements Lease may be provided by a single policy of insurance or by a
combination of primary and umbrella policies, but in no event shall the total
limits of liability available for any one occurrence or accident be less than
those required by this Exhibit.

     G.   Extreme shall provide copies, certified as complete and correct by an
authorized agent of the applicable insurer, of all insurance policies required
by this Exhibit within ten days after receipt of a request for such copies from
BNPLC.

                              Exhibit B - Page 3

[Improvements]
<PAGE>

                                   Exhibit C
                                   ---------

                        Notice of LIBOR Period Election

BNP Leasing Corporation
12201 Merit Drive
Suite 860
Dallas, Texas 75251
Attention: Lloyd G. Cox

     Re: Lease Agreement (Improvements) and Lease Agreement (Land), both dated
as of June 1, 2000, and both between Extreme Networks, Inc., as tenant, and BNP
Leasing Corporation, as landlord

Gentlemen:

     Capitalized terms used in this letter are intended to have the meanings
assigned to them in the two Lease Agreements referenced above. This letter
constitutes notice to you that the LIBOR Period Election under both of the Lease
Agreements shall be:

                                        ________________ month(s),

beginning with the first Base Rent Period that commences on or after:

                                        ______________, ____.

NOTE: YOU SHALL BE ENTITLED TO DISREGARD THIS NOTICE IF THE NUMBER OF MONTHS
----
SPECIFIED ABOVE IS NOT A PERMITTED NUMBER UNDER THE DEFINITION OF "LIBOR PERIOD
ELECTION" IN THE COMMON DEFINITIONS AND PROVISIONS AGREEMENTS REFERENCED IN THE
LEASE AGREEMENTS, OR IF THE DATE SPECIFIED ABOVE CONCERNING THE COMMENCEMENT OF
THE LIBOR PERIOD ELECTION IS LESS THAN TEN BUSINESS DAYS AFTER YOUR RECEIPT OF
THIS NOTICE. HOWEVER, WE ASK THAT YOU NOTIFY US IMMEDIATELY IF FOR ANY REASON
YOU BELIEVE THIS NOTICE IS DEFECTIVE.

     Executed this _____ day of ______________, 20___.

                                        Extreme Networks, Inc.

                                        Name:_________________________________
                                        Title:________________________________

[cc all Participants]

     [Improvements]
<PAGE>

                                  Schedule 1
                                  ----------

                              FINANCIAL COVENANTS

[DRAFTING NOTE: TK WILL MANUALLY SUBSTITUTE THE FINAL SCHEDULE 1 (A SEPARATE
 --------------
 WORD PROCESSING FILE) FOR THIS PAGE IN THE EXECUTION COPIES OF THIS DOCUMENT.]

     [Improvements]<PAGE>

================================================================================
                                                                   EXHIBIT 10.10

                              PURCHASE AGREEMENT
                                    (LAND)

                                    BETWEEN

                            BNP LEASING CORPORATION

                                   ("BNPLC")

                                      AND

                            EXTREME NETWORKS, INC.

                                  ("Extreme")

                                 June 1, 2000

                           (Santa Clara, California)

================================================================================
<PAGE>

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
1.       Extreme's Options and Obligations on the Designated Sale Date........................................    1
         (A)      Right to Purchase; Initial Remarketing Rights and Obligations...............................    1
                  -------------------------------------------------------------
         (B)      Determinations Concerning Price.............................................................    3
                  -------------------------------
         (C)      Designation of the Purchaser................................................................    4
                  ----------------------------
         (D)      Effect of the Purchase Option and Extreme's Initial Remarketing Rights and Obligations on
                  -----------------------------------------------------------------------------------------
                  Subsequent Title Encumbrances...............................................................    4
                  -----------------------------
         (E)      Security for the Purchase Option and Extreme's Initial Remarketing Rights and Obligations...    4
                  -----------------------------------------------------------------------------------------
         (F)      Delivery of Books and Records If BNPLC Retains the Property.................................    5
                  -----------------------------------------------------------

2.       Extreme's Rights and Options After the Designated Sale Date..........................................    5
         (A)      Extreme's Extended Right to Remarket........................................................    5
                  ------------------------------------
         (B)      Definition of Minimum Extended Remarketing Price............................................    5
                  ------------------------------------------------
         (C)      BNPLC's Right to Sell.......................................................................    6
                  ---------------------
         (D)      Extreme's Right to Excess Sales Proceeds....................................................    7
                  ----------------------------------------
         (E)      Permitted Transfers During Extreme's Extended Remarketing Period............................    7
                  ----------------------------------------------------------------

3.       Terms of Conveyance Upon Purchase....................................................................    7

4.       Survival and Termination of the Rights and Obligations of Extreme and BNPLC..........................    8
         (A)      Status of this Agreement Generally..........................................................    8
                  ----------------------------------
         (B)      Automatic Termination of Extreme's Rights...................................................    8
                  -----------------------------------------
         (C)      Termination of Extreme's Extended Remarketing Rights to Permit a Sale by BNPLC..............    9
                  ------------------------------------------------------------------------------
         (D)      Payment Only to BNPLC.......................................................................    9
                  ---------------------
         (E)      Remedies Under the Other Operative Documents................................................    9
                  --------------------------------------------
         (F)      Occupancy by Extreme Prior to Closing of a Sale.............................................    9
                  -----------------------------------------------

5.       Security for Extreme's Obligations; Return of Funds..................................................    9

6.       Certain Remedies Cumulative..........................................................................   10

7.       Attorneys' Fees and Legal Expenses...................................................................   10

8.       Estoppel Certificate.................................................................................   10

9.       Successors and Assigns...............................................................................   10
</TABLE>

[Land]
<PAGE>

                            Exhibits and Schedules
                            ----------------------

Exhibit A......................................................Legal Description
---------

Exhibit B...................Requirements Re: Form of Grant Deed and Ground Lease
---------

Exhibit C............................................Bill of Sale and Assignment
---------

Exhibit D..........................................Acknowledgment and Disclaimer
---------

Exhibit E................................................Secretary's Certificate
---------

Exhibit F.................................Certificate Concerning Tax Withholding
---------

[Land]
<PAGE>

                              PURCHASE AGREEMENT
                                    (LAND)

     This PURCHASE AGREEMENT (LAND) (this "Agreement") is made and dated as of
June 1, 2000 (the "Effective Date") by and between BNP LEASING CORPORATION, a
Delaware corporation ("BNPLC"), and EXTREME NETWORKS, INC., a California
corporation ("Extreme").

                                   RECITALS

     Contemporaneously with the execution of this Agreement, BNPLC and Extreme
are executing a Common Definitions and Provisions Agreement (Land) dated as of
the Effective Date (the "Common Definitions and Provisions Agreement (Land)"),
which by this reference is incorporated into and made a part of this Agreement
for all purposes. As used in this Agreement, capitalized terms defined in the
Common Definitions and Provisions Agreement (Land) and not otherwise defined in
this Agreement are intended to have the respective meanings assigned to them in
the Common Definitions and Provisions Agreement (Land).

     Pursuant to the Acquisition Contract, which covers the Land described in
Exhibit A, BNPLC is acquiring the Land and any appurtenances thereto and the
---------
existing Improvements thereon from Seller contemporaneously with the execution
of this Agreement. Pursuant to the Lease Agreement (Land) executed by BNPLC and
Extreme contemporaneously with this Agreement (the "Land Lease"), BNPLC is
leasing the Land to Extreme. (All of BNPLC's interests, including those created
by the documents delivered at the closing under the Acquisition Contract, in the
Land and in all other real and personal property from time to time covered by
the Land Lease and included within the "Property" as defined therein are
hereinafter collectively referred to as the "Property". The Property does not
include the Improvements, it being understood that the Other Purchase Agreement
constitutes a separate agreement providing for the possible sale of the
Improvements and the appurtenances thereto, and only the Improvements and the
appurtenances thereto, from BNPLC to Extreme or a third party designated by
Extreme.)

     Extreme and BNPLC have reached agreement upon the terms and conditions upon
which Extreme will purchase or arrange for the purchase of the Property, and by
this Agreement they desire to evidence such agreement.

                                  AGREEMENTS

     1.   Extreme's Options and Obligations on the Designated Sale Date.

          (A)  Right to Purchase; Initial Remarketing Rights and Obligations.
               -------------------------------------------------------------
Whether or not an Event of Default shall have occurred and be continuing or the
Land Lease shall have been terminated, but subject to Paragraph 4 below:

               (1)  Extreme shall have the right (the "Purchase Option") to
     purchase or cause an Affiliate of Extreme to purchase the Property and
     BNPLC's interest in Escrowed Proceeds, if any, on the Designated Sale Date
     for a cash price equal to the Break Even Price (as defined below).

               (2)  If neither Extreme nor an Affiliate of Extreme purchases the
     Property and BNPLC's interest in any Escrowed Proceeds on the Designated
     Sale Date as provided in the preceding
<PAGE>

     subparagraph 1.(A)(1), then Extreme shall have the following rights and
     obligations (collectively, "Extreme's Initial Remarketing Rights and
     Obligations"):

               (a)  First, Extreme shall have the right (but not the obligation)
        to cause an Applicable Purchaser who is not an Affiliate of Extreme to
        purchase the Property and BNPLC's interest in any Escrowed Proceeds on
        the Designated Sale Date for a cash purchase price (the "Third Party
        Price") determined as provided below. If, however, the Break Even Price
        exceeds the sum of any Third Party Price tendered or to be tendered to
        BNPLC by an Applicable Purchaser and any Supplemental Payment paid by
        Extreme as described below, then BNPLC may affirmatively elect to
        decline such tender from the Applicable Purchaser and to keep the
        Property and any Escrowed Proceeds rather than sell to the Applicable
        Purchaser pursuant to this subparagraph (a "Voluntary Retention of the
        Property").

               (b)  Second, if the Third Party Price actually paid by an
        Applicable Purchaser to BNPLC on the Designated Sale Date exceeds the
        Break Even Price, Extreme shall be entitled to such excess, subject,
        however, to BNPLC's right to offset against such excess any and all sums
        that are then due from Extreme to BNPLC under the other Operative
        Documents.

               (c)  Third, if for any reason whatsoever (including a Voluntary
        Retention of the Property or a decision by Extreme not to exercise its
        right to purchase or cause an Applicable Purchaser to purchase from
        BNPLC as described above) neither Extreme nor an Applicable Purchaser
        pays a net cash price to BNPLC on the Designated Sale Date equal to or
        in excess of the Break Even Price in connection with a sale of the
        Property and BNPLC's interest in any Escrowed Proceeds pursuant to this
        Agreement, then Extreme shall have the obligation to pay to BNPLC on the
        Designated Sale Date a supplemental payment (the "Supplemental Payment")
        equal to the lesser of (1) the amount by which the Break Even Price
        exceeds such net cash price (if any) actually received by BNPLC on the
        Designated Sale Date (such excess being hereinafter called a
        "Deficiency") or (2) the Maximum Remarketing Obligation. As used herein,
        the "Maximum Remarketing Obligation" means a dollar amount determined in
        accordance with the following provisions:

                         1)   The "Maximum Remarketing Obligation" will equal
          the product of (i) Stipulated Loss Value on the Designated Sale Date,
          times (ii) 100% minus the Residual Risk Percentage, provided that both
          of the following conditions are satisfied:

                              (x)  Extreme shall not have elected to accelerate
               the Designated Sale Date as provided in clause (2) of the
               definition of Designated Sale Date in the Common Definitions and
               Provisions Agreement (Land).

                              (y)  No Event of Default, other than an Issue 97-1
               Non-performance-related Subjective Event of Default, shall occur
               on or be continuing on the Designated Sale Date.

                         2)   If either of the conditions listed in subparagraph
          1) preceding are not satisfied, the "Maximum Remarketing Obligation"
          will equal the Break Even Price.

If any Supplemental Payment or other amount payable to BNPLC pursuant to this
subparagraph 1.(A) is not actually paid to BNPLC on the Designated Sale Date,
Extreme shall pay interest on the past due amount computed at the Default Rate
from the Designated Sale Date.

[Land]

                                       2
<PAGE>

          (B)  Determinations Concerning Price.
               -------------------------------

               (1)  Determination of the Break Even Price. As used herein,
                    -------------------------------------
"Break Even Price" means an amount equal, on the Designated Sale Date, to
Stipulated Loss Value, plus all out-of-pocket costs and expenses (including
                       ----
appraisal costs, withholding taxes (if any) not constituting Excluded Taxes, and
Attorneys' Fees) incurred by BNPLC in connection with any sale of BNPLC's
interests in the Property under this Agreement or in connection with collecting
payments due hereunder, but less the aggregate amounts (if any) of Direct
                        --------
Payments to Participants and Deposit Taker Losses.

               (2)  Determination of Third Party Price.  The Third Party Price
                    ----------------------------------
required of any Applicable Purchaser purchasing from BNPLC under
subparagraph 1.(A)(2)(a) will be determined as follows:

               (a)  Extreme may give a notice (a "Remarketing Notice") to BNPLC
          and to each of the Participants no earlier than one hundred twenty
          days before the Designated Sale Date and no later than ninety days
          before the Designated Sale Date, specifying an amount as the Third
          Party Price that Extreme believes in good faith to constitute
          reasonably equivalent value for the Property and any Escrowed
          Proceeds. Once given, a Remarketing Notice shall not be rescinded or
          modified without BNPLC's written consent.

               (b)  If BNPLC believes in good faith that the Third Party Price
          specified by Extreme in a Remarketing Notice does not constitute
          reasonably equivalent value for the Property and any Escrowed
          Proceeds, BNPLC may at any time before sixty days prior to the
          Designated Sale Date respond to the Remarketing Notice with a notice
          back to Extreme, objecting to the Third Party Price so specified by
          Extreme. If BNPLC receives a Remarketing Notice, yet does not respond
          with an objection as provided in the preceding sentence, the Third
          Party Price suggested by Extreme in the Remarketing Notice will be the
          Third Party Price for purposes of this Agreement. If, however, BNPLC
          does respond with an objection as provided in this subparagraph, and
          if Extreme and BNPLC do not otherwise agree in writing upon a Third
          Party Price, then the Third Party Price will be the lesser of (I) fair
          market value of the Property, plus the amount of any Escrowed
          Proceeds, as determined by a professional independent appraiser
          selected by BNPLC, or (II) the Break Even Price.

               (c)  If for any reason, including an acceleration of the
          Designated Sale Date as provided in the definition thereof in the
          Common Definitions and Provisions Agreement (Land), Extreme does not
          deliver a Remarketing Notice to BNPLC within the time period specified
          above, then the Third Party Price will be an amount determined in good
          faith by BNPLC as constituting reasonably equivalent value for the
          Property and any Escrowed Proceeds, but in no event more than the
          Break Even Price.

If any payment to BNPLC by an Applicable Purchaser hereunder is held to
constitute a preference or a voidable transfer under Applicable Law, or must for
any other reason be refunded by BNPLC to the Applicable Purchaser or to another
Person, and if such payment to BNPLC reduced or had the effect of reducing a
Supplemental Payment or increased or had the effect of increasing any excess
sale proceeds paid to Extreme pursuant to subparagraph 1(A)(2)(b) or pursuant to
subparagraph 2.(D), then Extreme shall pay to BNPLC upon demand an amount equal
to the reduction of the Supplemental Payment or to the increase of the excess
sale proceeds paid to Extreme, as applicable, and this Agreement shall continue
to

[Land]

                                       3
<PAGE>

     be effective or shall be reinstated as necessary to permit BNPLC to enforce
     its right to collect such amount from Extreme.

          (C)  Designation of the Purchaser. To give BNPLC the opportunity
               ----------------------------
before the Designated Sale Date to prepare the deed and other documents that
BNPLC must tender pursuant to Paragraph 3 (collectively, the "Sale Closing
Documents"), Extreme must, by a notice to BNPLC given at least seven days prior
to the Designated Sale Date, specify irrevocably, unequivocally and with
particularity the party who will purchase the Property in order to satisfy the
obligations of Extreme set forth in subparagraph 1(A). If for any reason Extreme
                                                 ----
fails to so specify a party who will in accordance with the terms and conditions
set forth herein purchase the Property (be it Extreme itself, an Affiliate of
Extreme or another Applicable Purchaser), BNPLC shall be entitled to postpone
the tender of the Sale Closing Documents until a date after the Designated Sale
Date and not more than twenty days after Extreme finally does so specify a
party, but such postponement will not relieve or postpone the obligation of
Extreme to make a Supplemental Payment on the Designated Sale Date as provided
in Paragraph 1.(A)(2)(c).

          (D)  Effect of the Purchase Option and Extreme's Initial Remarketing
               ---------------------------------------------------------------
Rights and Obligations on Subsequent Title Encumbrances. Any conveyance of the
-------------------------------------------------------
Property to Extreme or any Applicable Purchaser pursuant to this Paragraph 1.(A)
shall cut off and terminate any interest in the Land or other Property claimed
by, through or under BNPLC, including any interest claimed by the Participants
and including any Liens Removable by BNPLC (such as, but not limited to, any
judgment liens established against the Property because of a judgment rendered
against BNPLC and any leasehold or other interests conveyed by BNPLC in the
ordinary course of BNPLC's business), but not including personal obligations of
Extreme to BNPLC under the Land Lease or other Operative Documents (including
obligations arising under the indemnities therein). Anyone accepting or taking
any interest in the Property by or through BNPLC after the date of this
Agreement shall acquire such interest subject to the Purchase Option and
Extreme's Initial Remarketing Rights and Obligations. Further, Extreme and any
Applicable Purchaser shall be entitled to pay any payment required by this
Agreement for the purchase of the Property directly to BNPLC notwithstanding any
prior conveyance or assignment by BNPLC, voluntary or otherwise, of any right or
interest in this Agreement or the Property, and neither Extreme nor any
Applicable Purchaser shall be responsible for the proper distribution or
application of any such payments by BNPLC; and any such payment to BNPLC shall
discharge the obligation of Extreme to cause such payment to all Persons
claiming an interest in such payment. Contemporaneously with the execution of
this Agreement, the parties shall record a memorandum of this Agreement for
purposes of effecting constructive notice to all Persons of Extreme's rights
under this Agreement, including its rights under this subparagraph.

          (E)  Security for the Purchase Option and Extreme's Initial
               ------------------------------------------------------
Remarketing Rights and Obligations. To secure BNPLC's obligation to sell the
-----------------------------------
Property pursuant to Paragraph 1.(A) and to pay any damages to Extreme caused by
a breach of such obligations, including any such breach caused by a rejection or
termination of this Agreement in any bankruptcy or insolvency proceeding
instituted by or against BNPLC, as debtor, BNPLC does hereby grant to Extreme a
lien and security interest against all rights, title and interests of BNPLC from
time to time in and to the Land and other Property. Extreme may enforce such
lien and security interest judicially after any such breach by BNPLC, but not
otherwise. Contemporaneously with the execution of this Agreement, Extreme and
BNPLC will execute a memorandum of this Agreement which is in recordable form
and which specifically references the lien granted in this subparagraph, and
Extreme shall be entitled to record such memorandum at any time prior to the
Designated Sale Date.

          (F)  Delivery of Books and Records If BNPLC Retains the Property.
               ----------------------------------------------------------
Unless Extreme or its Affiliate or another Applicable Purchaser purchases the
Property pursuant to Paragraph 1.(A), promptly after the Designated Sale Date
Extreme shall deliver to BNPLC copies of books and records of Extreme which will
be necessary or useful to any future owner's or occupant's use of the Property.

[Land]

                                       4
<PAGE>

          2.      Extreme's Rights and Options after the Designated Sale Date.

                  (A)    Extreme's Extended Right to Remarket. During the two
                         ------------------------------------
years following the Designated Sale Date ("Extreme's Extended Remarketing
Period"), Extreme shall have the right ("Extreme's Extended Remarketing Right")
to cause an Applicable Purchaser who is not an Affiliate of Extreme to purchase
the Property for a cash purchase price not below the Minimum Extended
Remarketing Price (as defined below). Extreme's Extended Remarketing Right
shall, however, be subject to all of the following conditions:

                         (1)  The Property and BNPLC's interest in Escrowed
          Proceeds, if any, shall not have been sold on the Designated Sale Date
          as provided in Paragraph 1 or within the thirty days thereafter as
          provided in subparagraph 4.(B).

                         (2)  No Voluntary Retention occurred as described in
          subparagraph 1.(A)(2)(a).

                         (3)  Extreme's Extended Remarketing Right shall not
          have been terminated pursuant to subparagraph 4.(B) below because of
          Extreme's failure to make any Supplemental Payment required on the
          Designated Sale Date.

                         (4)  Extreme's Extended Remarketing Right shall not
          have been terminated by BNPLC pursuant to subparagraph 4.(C) below to
          facilitate BNPLC's sale of the Property to a third party in accordance
          with subparagraph 2.(C).

                         (5)  At least thirty days prior to the date upon which
          BNPLC is to convey the Property to an Applicable Purchaser because of
          Extreme's exercise of Extreme's Extended Remarketing Right (the "Final
          Sale Date"), Extreme shall have notified BNPLC of (x) the date
          proposed by Extreme as the Final Sale Date (which must be a Business
          Day), (y) the full legal name of the Applicable Purchaser and such
          other information as will be required to prepare the Sale Closing
          Documents, and (z) the amount of the purchase price that the
          Applicable Purchaser will pay (consistent with the minimum required
          pursuant to the other provisions of this subparagraph 2.(A)) for the
          Property.

                  (B)    Definition of Minimum Extended Remarketing Price. As
                         ------------------------------------------------
used herein, the "Minimum Extended Remarketing Price" means, subject to
reduction as provided in subparagraph 2.(C) below, an amount equal to the sum of
the following:

                         (1)  the amount by which the Break Even Price computed
          on the Designated Sale Date exceeds any Supplemental Payment actually
          paid to BNPLC on the Designated Sale Date, together with interest on
          such excess computed at the Default Rate from the period commencing on
          the Designated Sale Date and ending on the Final Sale Date, plus
                                                                      ----

                         (2)  all out-of-pocket costs and expenses (including
          withholding taxes [if any], other than Excluded Taxes, and Attorneys'
          Fees) incurred by BNPLC in connection with the sale to the Applicable
          Purchaser, to the extent not already included in the computation of
          Break Even Price, and plus
                            --------

                         (3)  the sum of all Impositions, insurance premiums and
          other Losses of every kind suffered or incurred by BNPLC or any other
          Interested Party with respect to the ownership, operation or
          maintenance of the Property on or after the Designated Sale Date,
          together with interest on such Impositions, insurance premiums and
          other Losses computed at the Default Rate from the date paid or
          incurred to the Final Sale Date.

[Land]

                                       5
<PAGE>

If, however, Losses described in the preceding clause (3) consist of claims
against BNPLC or another Interested Party that have not been liquidated prior to
the Final Sale Date (and, thus, such Losses have yet to be fixed in amount as of
the Final Sale Date), then Extreme may elect to exclude any such Losses from the
computation of the Minimum Extended Remarketing Price by providing to BNPLC, for
the benefit of BNPLC and other Interested Parties, a written agreement to
indemnify and defend BNPLC and other Interested Parties against such Losses. To
be effective hereunder for purposes of reducing the Minimum Extended Remarketing
Price (and, thus, the Break Even Price), any such written indemnity must be
fully executed and delivered by Extreme on or prior to the Final Sale Date, must
include provisions comparable to subparagraphs 5(c)(ii), (iii), (iv) and (v) of
                                 -------------------------------------------
the Land Lease and otherwise must be in form and substance satisfactory to
BNPLC.

          (C)  BNPLC's Right to Sell. After the Designated Sale Date, if the
               ---------------------
Property has not already been sold by BNPLC pursuant to Paragraph 1 or this
Paragraph 2, BNPLC shall have the right to sell the Property or offer the
Property for sale to any third party on any terms believed to be appropriate by
BNPLC in its sole good faith business judgment; provided, however, that so long
as the conditions to Extreme's Extended Remarketing Rights specified in
subparagraph 2.(A) continue to be satisfied:

               (1)  BNPLC shall not sell the Property to an Affiliate of BNPLC
     on terms less favorable than those which BNPLC would require from a
     prospective purchaser not an Affiliate of BNPLC;

               (2)  If BNPLC receives or desires to make a written proposal
     (whether in the form of a "letter of intent" or other nonbinding expression
     of interest or in the form of a more definitive purchase and sale
     agreement) for a sale of the Property to a prospective purchaser (a "Third
     Party Sale Proposal"), and if on the basis of such Third Party Sale
     Proposal BNPLC expects to enter into or to pursue negotiations for a
     definitive purchase and sale agreement with the prospective purchaser, then
     prior to executing any such definitive agreement, BNPLC shall submit the
     Third Party Sale Proposal to Extreme with a notice (the "Third Party Sale
     Notice") explaining that (A) BNPLC is then prepared to accept a price not
     below an amount specified in such Third Party Sale Notice (the "Third Party
     Target Price") if BNPLC and the prospective purchaser reach agreement on
     other terms and conditions to be incorporated into a definitive purchase
     and sale agreement, and (B) Extreme's Extended Remarketing Right may be
     terminated pursuant to subparagraph 4.(C) of this Agreement unless Extreme
     causes an Applicable Purchaser to consummate a purchase of the Property
     pursuant to this Paragraph 2 within ninety days after the date of such
     Third Party Sale Notice.

For a period of ninety days (but only ninety days) after the date of any Third
Party Sale Notice, the Minimum Extended Remarketing Price shall be limited in
amount so that it does not exceed the Third Party Target Price specified by
BNPLC therein. Accordingly, if BNPLC has delivered a Third Party Sale Notice
specifying a Third Party Target Price below the Minimum Extended Remarketing
Price calculated as provided in subparagraph 2.(B) within the ninety days prior
to the Final Sale Date for any sale to an Applicable Purchaser by BNPLC pursuant
to this Paragraph 2, then the Minimum Extended Remarketing Price applicable to
such sale shall be reduced to the amount of the Third Party Target Price so
specified. Such a reduction, however, will apply only to a sale to an Applicable
Purchaser actually consummated within the ninety days after the date of the
applicable Third Party Sale Notice.

          (D)  Extreme's Right to Excess Sales Proceeds. If the cash price
               ----------------------------------------
actually paid by any third party purchasing the Property from BNPLC during
Extreme's Extended Remarketing Period, including any price paid by an Applicable
Purchaser purchasing from BNPLC pursuant to this Paragraph 2, exceeds the
Minimum Extended Remarketing Price (calculated as provided in subparagraph
2.(B), without reduction pursuant to

[Land]

                                       6
<PAGE>

subparagraph 2.(C)), then Extreme shall be entitled to the excess; provided,
that BNPLC may offset and retain from the excess any and all sums that are then
due and unpaid from Extreme to BNPLC under any of the Operative Documents.

          (E)  Permitted Transfers During Extreme's Extended Remarketing Period.
               ----------------------------------------------------------------
Any "Permitted Transfer" described in clause (6) of the definition thereof in
                                      ----------
the Common Definitions and Provisions Agreement (Land) to an Affiliate of BNPLC
or that covers BNPLC's entire interest in the Land will be subject to Extreme's
Extended Remarketing Right if, at the time of the Permitted Transfer, Extreme's
Extended Remarketing Right has not expired or been terminated as provided
herein. Any other Permitted Transfer described in clause (6) of the definition
thereof, however, will not be subject to Extreme's Extended Remarketing Right.
Thus, for example, BNPLC's conveyance of a utility easement or space lease more
than thirty days after the Designated Sale Date to a Person not an Affiliate of
BNPLC shall not be subject to Extreme's Extended Remarketing Right, though
following the conveyance of the lesser estate, Extreme's Extended Remarketing
Right may continue to apply to BNPLC's remaining interest in the Land and any
Personal Property.

     3    Terms of Conveyance Upon Purchase. As necessary to consummate any sale
of the Property to Extreme or an Applicable Purchaser pursuant to this
Agreement, BNPLC must, subject to any postponement permitted by subparagraph
1.(C), promptly after the tender of the purchase price and any other payments to
BNPLC required pursuant to Paragraph 1 or Paragraph 2, as applicable, convey all
of BNPLC's right, title and interest in the Land and other Property to Extreme
or the Applicable Purchaser, as the case may be, by BNPLC's execution,
acknowledgment (where appropriate) and delivery of the Sale Closing Documents.
Such conveyance by BNPLC will be subject only to the Permitted Encumbrances and
any other encumbrances that do not constitute Liens Removable by BNPLC. However,
such conveyance shall not include the rights of BNPLC or other Interested
Parties under the indemnities provided in the Operative Documents, including
rights to any payments then due from Extreme under the indemnities or that may
become due thereafter because of any expense or liability incurred by BNPLC or
another Interested Party resulting in whole or in part from events or
circumstances occurring or alleged to have occurred before such conveyance. All
costs, both foreseen and unforeseen, of any purchase by Extreme or an Applicable
Purchaser hereunder shall be the responsibility of the purchaser. The Sale
Closing Documents used to accomplish such conveyance shall consist of the
following: (1) a Corporation Grant Deed in the form attached as Exhibit B-1 or
                                                                -----------
Exhibit B-2 or Exhibit B-4, as required by Exhibit B, (2) if required by Exhibit
-----------    -----------                 ---------                     -------
B, a Ground Lease in the form attached as Exhibit B-3, which Extreme or the
-                                         -----------
Applicable Purchase must execute and return to BNPLC, (3) a Bill of Sale and
Assignment in the form attached as Exhibit C, (4) an Acknowledgment of
                                   ---------
Disclaimer of Representations and Warranties, in the form attached as Exhibit D,
                                                                      ---------
which Extreme or the Applicable Purchaser must execute and return to BNPLC, (5)
a Secretary's Certificate in the form attached as Exhibit E, and (6) a
                                                  ---------
certificate concerning tax withholding in the form attached as Exhibit F. If for
                                                               ---------
any reason BNPLC fails to tender the Sale Closing Documents as required by this
Paragraph 3, BNPLC may cure such refusal at any time before thirty days after
receipt of a demand for such cure from Extreme.

     4    Survival and Termination of the Rights and Obligations of Extreme and
Bnplc.

          (A)  Status of this Agreement Generally. Except as expressly provided
               ----------------------------------
herein, this Agreement shall not terminate; nor shall Extreme have any right to
terminate this Agreement; nor shall Extreme be entitled to any reduction of the
Break Even Price, any Deficiency, the Maximum Remarketing Obligation, any
Supplemental Payment or the Minimum Extended Remarketing Price hereunder; nor
shall the obligations of Extreme to BNPLC under Paragraph 1 be affected, by
reason of (i) any damage to or the destruction of all or any part of the
Property from whatever cause (though it is understood that Extreme will receive
any remaining Escrowed Proceeds yet to be applied as provided in the Land Lease
that may result from such damage if Extreme purchases the Property and the
Escrowed Proceeds as herein provided), (ii) the taking of or damage to the
Property or any portion thereof by eminent domain or otherwise for any reason
(though it is understood that Extreme will receive any remaining

[Land]

                                       7
<PAGE>

Escrowed Proceeds yet to be applied as provided in the Land Lease that may
result from such taking or damage if Extreme purchases the Property and the
Escrowed Proceeds as herein provided), (iii) the prohibition, limitation or
restriction of Extreme's us e of all or any portion of the Property or any
interference with such use by governmental action or otherwise, (iv) any
eviction of Extreme or any party claiming under Extreme by paramount title or
otherwise, (v) Extreme's prior acquisition or ownership of any interest in the
Property, (vi) any default on the part of BNPLC under this Agreement, the Land
Lease or any other agreement to which BNPLC is a party, or (vii) any other
cause, whether similar or dissimilar to the foregoing, any existing or future
law to the contrary notwithstanding. It is the intention of the parties hereto
that the obligations of Extreme hereunder (including the obligation to make any
Supplemental Payment as provided in Paragraph 1) shall be separate and
independent covenants and agreements from BNPLC's obligations under this
Agreement or any other agreement between BNPLC and Extreme; provided, however,
that nothing in this subparagraph shall excuse BNPLC from its obligation to
tender the Sale Closing Documents in substantially the form attached hereto as
exhibits when required by Paragraph 3. Further, nothing in this subparagraph
shall be construed as a waiver by Extreme of any right Extreme may have at law
or in equity to the following remedies, whether because of BNPLC's failure to
remove a Lien Removable by BNPLC or because of any other default by BNPLC under
this Agreement: (i) the recovery of monetary damages, (ii) injunctive relief in
case of the violation, or attempted or threatened violation, by BNPLC of any of
the express covenants, agreements, conditions or provisions of this Agreement
which are binding upon BNPLC, or (iii) a decree compelling performance by BNPLC
of any of the express covenants, agreements, conditions or provisions of this
Agreement which are binding upon BNPLC.

          (B)  Automatic Termination of Extreme's Rights. Without limiting
               -----------------------------------------
BNPLC's right to enforce Extreme's obligation to pay any Supplemental Payment or
other amounts required by this Agreement, the rights of Extreme (to be
distinguished from the obligations of Extreme) included in Extreme's Initial
Remarketing Rights and Obligations, the Purchase Option and Extreme's Extended
Remarketing Rights shall all terminate automatically if Extreme shall fail to
pay the full amount of any Supplemental Payment required by subparagraph
1.(A)(2)(c) on the Designated Sale Date or if BNPLC shall elect a Voluntary
Retention of the Property as provided in subparagraph 1.(A)(2)(a).
Notwithstanding anything in this subparagraph to the contrary, however, even
after a failure to pay any required Supplemental Payment on the Designated Sale
Date, Extreme may nonetheless tender to BNPLC the full Break Even Price and all
amounts then due under the Operative Documents, together with interest on the
total Break Even Price computed at the Default Rate from the Designated Sale
Date to the date of tender, on any Business Day within thirty days after the
Designated Sale Date, and if presented with such a tender within thirty days
after the Designated Sale Date, BNPLC must accept it and promptly thereafter
deliver any Escrowed Proceeds and the Sale Closing Documents listed in Paragraph
3 to Extreme.

          (C)  Termination of Extreme's Extended Remarketing Rights to Permit a
               ----------------------------------------------------------------
Sale by BNPLC. At any time more than ninety days after BNPLC has delivered a
-------------
Third Party Sale Notice to Extreme as described in subparagraph 2.(C)(2), BNPLC
may terminate Extreme's Extended Remarketing Rights contemporaneously with the
consummation of a sale of the Property by BNPLC to any third party (be it the
prospective purchaser named in the Third Party Sale Notice or another third
party) at a price equal to or in excess of the Third Party Target Price
specified in the Third Party Sale Notice, so as to permit the sale of the
Property unencumbered by Extreme's Extended Remarketing Rights.

          (D)  Payment Only to BNPLC. All amounts payable under this Agreement
               ---------------------
by Extreme and, if applicable, by an Applicable Purchaser must be paid directly
to BNPLC, and no payment to any other party shall be effective for the purposes
of this Agreement. In addition to the payments required under subparagraph
1.(A), on the Designated Sale Date Extreme must pay all amounts then due to
BNPLC under the Land Lease or other Operative Documents. This subparagraph shall
not, however, be construed to limit Extreme's right to require the deduction of
Direct Payments to Participants and Deposit Taker Losses in the calculation of
the Break Even Price as provided in subparagraph 1.(B)(1).

[Land]                                 8
<PAGE>

          (E)  Remedies Under the Other Operative Documents. No repossession of
               --------------------------------------------
or re-entering upon the Property or exercise of any other remedies available to
BNPLC under the Land Lease or other Operative Documents shall terminate
Extreme's rights or obligations hereunder, all of which shall survive BNPLC's
exercise of remedies under the other Operative Documents. Extreme acknowledges
that the consideration for this Agreement is separate and independent of the
consideration for the Land Lease and the Closing Certificate, and Extreme's
obligations hereunder shall not be affected or impaired by any event or
circumstance that would excuse Extreme from performance of its obligations under
such other Operative Documents.

          (F)  Occupancy by Extreme Prior to Closing of a Sale. Prior to the
               -----------------------------------------------
closing of any sale of the Property to Extreme or an Applicable Purchaser
hereunder, Extreme's occupancy of the Land and its use of the Property shall
continue to be subject to the terms and conditions of the Land Lease, including
the terms setting forth Extreme's obligation to pay rent, prior to any
termination or expiration of the Land Lease pursuant to its express terms and
conditions.

     5    Security for Extreme's Obligations; Return of Funds. Extreme's
obligations under this Agreement are secured by the Pledge Agreement, reference
to which is hereby made for a description of the Collateral covered thereby and
the rights and remedies provided to BNPLC thereby. Although the collateral agent
appointed for BNPLC as provided in the Pledge Agreement shall be entitled to
hold all Collateral as security for the full and faithful performance by Extreme
of Extreme's covenants and obligations under this Agreement, the Collateral
shall not be considered an advance payment of the Break Even Price or any
Supplemental Payment or a measure of BNPLC's damages should Extreme breach this
Agreement. If Extreme does breach this Agreement and fails to cure the same
within any time specified herein for the cure, BNPLC may, from time to time,
without prejudice to any other remedy and without notice to Extreme, require the
collateral agent to immediately apply the proceeds of any disposition of the
Collateral (and any cash included in the Collateral) to amounts then due
hereunder from Extreme. If by a Permitted Transfer BNPLC conveys its interest in
the Property before the Designated Sale Date, BNPLC may also assign BNPLC's
interest in the Collateral to the transferee. BNPLC shall be entitled to return
any Collateral not sold or used to satisfy the obligations secured by the Pledge
Agreement directly to Extreme notwithstanding any prior actual or attempted
conveyance or assignment by Extreme, voluntary or otherwise, of any right to
receive the same; neither BNPLC nor the collateral agent named in the Pledge
Agreement shall be responsible for the proper distribution or application by
Extreme of any such Collateral returned to Extreme; and any such return of
Collateral to Extreme shall discharge any obligation of BNPLC to deliver such
Collateral to all Persons claiming an interest in the Collateral. Further, BNPLC
shall be entitled to deliver any Escrowed Proceeds it holds on the Designated
Sale Date directly to Extreme or to any Applicable Purchaser purchasing BNPLC's
interest in the Property and the Escrowed Proceeds pursuant to this Agreement
notwithstanding any prior actual or attempted conveyance or assignment by
Extreme, voluntary or otherwise, of any right to receive the same; BNPLC shall
not be responsible for the proper distribution or application by Extreme or any
Applicable Purchaser of any such Escrowed Proceeds paid over to Extreme or the
Applicable Purchaser; and any such payment of Escrowed Proceeds to Extreme or an
Applicable Purchaser shall discharge any obligation of BNPLC to deliver the same
to all Persons claiming an interest therein.

     6    Certain Remedies Cumulative. No right or remedy herein conferred upon
or reserved to BNPLC is intended to be exclusive of any other right or remedy
BNPLC has with respect to the Property, 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 at law or in equity or by statute. In addition to
other remedies available under this Agreement, either party shall be entitled,
to the extent permitted by applicable law, to a decree compelling performance of
any of the other party's agreements hereunder.

[Land]                                 9
<PAGE>

     7    Attorneys' Fees and Legal Expenses. If either party to this Agreement
commences any legal action or other proceeding to enforce any of the terms of
this Agreement, or because of any breach by the other party or dispute
hereunder, the party prevailing in such action or proceeding shall be entitled
to recover from the other party all Attorneys' Fees incurred in connection
therewith, whether or not such controversy, claim or dispute is prosecuted to a
final judgment. Any such Attorneys' Fees incurred by either party in enforcing a
judgment in its favor under this Agreement shall be recoverable separately from
such judgment, and the obligation for such Attorneys' Fees is intended to be
severable from other provisions of this Agreement and not to be merged into any
such judgment.

     8    Estoppel Certificate. Upon request by BNPLC, Extreme shall execute,
acknowledge and deliver a written statement certifying that this Agreement is
unmodified and in full effect (or, if there have been modifications, that this
Agreement is in full effect as modified, and setting forth such modification)
and either stating that no default exists hereunder or specifying each such
default of which Extreme has knowledge. Any such statement may be relied upon by
any Participant or prospective purchaser or assignee of BNPLC with respect to
the Property.

     9    Successors and Assigns. The terms, provisions, covenants and
conditions hereof shall be binding upon Extreme and BNPLC and their respective
permitted successors and assigns and shall inure to the benefit of Extreme and
BNPLC and all permitted transferees, mortgagees, successors and assignees of
Extreme and BNPLC with respect to the Property; provided, that (A) the rights of
BNPLC hereunder shall not pass to Extreme or any Applicable Purchaser or any
subsequent owner claiming through Extreme or an Applicable Purchaser, (B) BNPLC
shall not assign this Agreement or any rights hereunder except pursuant to a
Permitted Transfer, and (C) Extreme shall not assign this Agreement or any
rights hereunder without the prior written consent of BNPLC.

                           [Signature pages follow.]

[Land]                                10
<PAGE>

     IN WITNESS WHEREOF, Extreme and BNPLC have caused this Agreement to be
executed as of June 1, 2000.

                                             "Extreme"

                                             EXTREME NETWORKS, INC.

                                             By:  ______________________________
                                                  Name:_________________________
                                                  Title:________________________
<PAGE>

[Continuation of signature pages to Purchase Agreement (Land) dated to be
effective June 1, 2000]

                                             "BNPLC"

                                             BNP LEASING CORPORATION

                                             By:  ______________________________
                                                  Lloyd G. Cox, Vice President
<PAGE>

                                   Exhibit A
                                   ---------

                               LEGAL DESCRIPTION

All that certain real property situated in the City of Santa Clara, County of
Santa Clara, State of California, described as follows:

Being a portion of that certain 24.740 acre parcel as shown on that certain
Record of Survey filed in Book 447 of Maps, at Page 33, Santa Clara County
Records, described as follows:

Beginning at the Northwest corner of said 24.740 acre parcel; thence from said
point of beginning along the Northerly line of said 24.470 acre parcel N. 89
degrees 25 minutes 00 seconds E. 995.17 feet; thence leaving said Northerly
lines S. 0 degrees 10 minutes 00 seconds W. 705.02 feet to a point in the
Southerly line of said 24.740 acre parcel; thence along said Southerly line the
following courses: S. 89 degrees 25 minutes 00 seconds W. 181.82 feet; S. 2.00
feet and S. 89 degrees 25 minutes 00 seconds W. 760.70 feet; thence leaving said
Southerly line along a tangent curve to the right, with a radius of 50.00 feet,
through a central angle of 90 degrees 34 minutes 33 seconds for an arc length of
79.4 feet to a point in the Westerly line of said 24.470 acre parcel; thence
along said Westerly line N. 0 degrees 00 minutes 27 seconds W. 656.49 feet to
the point of beginning.

[Land]
<PAGE>

                                   Exhibit B
                                   ---------

             Requirements Re: Form of Grant Deed and Ground Lease

The form of deed to be used to convey BNPLC's interest in the Land to Extreme or
an Applicable Purchaser will depend upon whether BNPLC's interest in the
Improvements has been or is being conveyed at the same time to the same party.

If BNPLC's interests in both the Land and the Improvements are to be conveyed to
Extreme or an Applicable Purchaser at the same time, because a sale under this
Purchase Agreement and a sale under the Other Purchase Agreement (covering the
Improvements) are being consummated at the same time and to the same party, then
the one deed in form attached as Exhibit B-1 will be used to convey both.
                                 -----------

If, however, a sale of BNPLC's interest in the Improvements pursuant to the
Other Purchase Agreement has not been consummated before, and is not being
consummated contemporaneously with the sale of BNPLC's interest in the Land
under this Agreement, then BNPLC's interest in the Land will be conveyed by a
deed in the from attached as Exhibit B-2, and BNPLC and the grantee under such
                             -----------
deed shall, as a condition to BNPLC's obligation to deliver the deed, execute
and deliver a Ground Lease covering the Land in the form attached hereto as
Exhibit B-3.
-----------

Finally, BNPLC's interest in the Land will be conveyed by a deed in the from
attached as Exhibit B-4 if BNPLC's interest in the Improvements has been sold
pursuant to the Other Purchase Agreement before a sale of BNPLC's interest in
the Land under this Agreement, or if BNPLC's interest in the Improvements is
being sold contemporaneously with a sale of BNPLC's interest in the Land, but
the purchaser of the Improvements is not the same as the purchaser of the Land.

[Land]
<PAGE>

                                  Exhibit B-1
                                  -----------

                            CORPORATION GRANT DEED

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
-------------------------

NAME:[Extreme or the Applicable Purchaser]
ADDRESS:  ___________________________
ATTN:     ___________________________
CITY:     ___________________________
STATE:___________________________
Zip:      ___________________________

MAIL TAX STATEMENTS TO:
----------------------

NAME:[Extreme or the Applicable Purchaser]
ADDRESS:  ___________________________
ATTN:     ___________________________
CITY:     ___________________________
STATE:___________________________
Zip:      ___________________________

                            CORPORATION GRANT DEED
                       (Covering Land and Improvements)

FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, BNP
LEASING CORPORATION, a Delaware corporation ("Grantor"), hereby grants to
[Extreme or the Applicable Purchaser] ("Grantee") all of Grantor's interest in
the land situated in Santa Clara, California, described on Annex A attached
hereto and hereby made a part hereof and all improvements on such land, together
with the any other right, title and interest of Grantor in and to any easements,
rights-of-way, privileges and other rights appurtenant to such land or the
improvements thereon; provided, however, that this grant is subject to the
encumbrances described on Annex B (the "Permitted Encumbrances"). Grantee hereby
assumes the obligations (including any personal obligations) of Grantor, if any,
created by or under, and agrees to be bound by the terms and conditions of, the
Permitted Encumbrances to the extent that the same concern or apply to the land
or improvements conveyed by this deed.

[Land]
<PAGE>

                                             BNP LEASING CORPORATING

Date: As of __________                       By:     ___________________________
                                                     Its:

                                             Attest: ___________________________
                                                     Its:

                                             [Extreme or Applicable Purchaser]

Date: As of __________                       By:     ___________________________
                                                     Its:

                                             Attest: ___________________________
                                                     Its:

STATE OF _____________   )
                         )    SS
COUNTY OF ____________   )

     On ___________________ before me,__________, personally appeared_________
and__________, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the persons whose names are subscribed to the
within instrument and acknowledged to me that they executed the same in their
authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

     WITNESS my hand and official seal.

     Signature_________________________________

[Land]                       Exhibit B-1 - Page 2
<PAGE>

STATE OF _____________   )
                         )    SS
COUNTY OF ____________   )

     On ___________________ before me,__________, personally appeared__________
and___________, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the persons whose names are subscribed to the
within instrument and acknowledged to me that they executed the same in their
authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

     WITNESS my hand and official seal.

     Signature____________________________

[Land]                       Exhibit B-1 - Page 3
<PAGE>

                                    Annex A

                               LEGAL DESCRIPTION

[DRAFTING NOTE: TO THE EXTENT THAT THE "LAND" COVERED BY THE LAND LEASE CHANGES
--------------
FROM TIME TO TIME BECAUSE OF ADJUSTMENTS FOR WHICH EXTREME REQUESTS BNPLC'S
CONSENT OR APPROVAL, SO TOO WILL THE DESCRIPTION OF THE LAND BELOW CHANGE. ANY
SUCH CHANGES WILL BE INCORPORATED INTO THE DESCRIPTION BELOW AND THIS "DRAFTING
NOTE" WILL BE DELETED BEFORE THE DEED TO WHICH THIS DESCRIPTION IS ATTACHED IS
ACTUALLY EXECUTED AND DELIVERED.]

All that certain real property situated in the City of Santa Clara, County of
Santa Clara, State of California, described as follows:

Being a portion of that certain 24.740 acre parcel as shown on that certain
Record of Survey filed in Book 447 of Maps, at Page 33, Santa Clara County
Records, described as follows:

Beginning at the Northwest corner of said 24.740 acre parcel; thence from said
point of beginning along the Northerly line of said 24.470 acre parcel N. 89
degrees 25 minutes 00 seconds E. 995.17 feet; thence leaving said Northerly
lines S. 0 degrees 10 minutes 00 seconds W. 705.02 feet to a point in the
Southerly line of said 24.740 acre parcel; thence along said Southerly line the
following courses: S. 89 degrees 25 minutes 00 seconds W. 181.82 feet; S. 2.00
feet and S. 89 degrees 25 minutes 00 seconds W. 760.70 feet; thence leaving said
Southerly line along a tangent curve to the right, with a radius of 50.00 feet,
through a central angle of 90 degrees 34 minutes 33 seconds for an arc length of
79.4 feet to a point in the Westerly line of said 24.470 acre parcel; thence
along said Westerly line N. 0 degrees 00 minutes 27 seconds W. 656.49 feet to
the point of beginning.

[Land]                       Exhibit B-1 - Page 4
<PAGE>

                                    Annex B

                            Permitted Encumbrances

[DRAFTING NOTE: TO THE EXTENT THAT ENCUMBRANCES (OTHER THAN "LIENS REMOVABLE BY
---------------
BNPLC") ARE IDENTIFIED IN ADDITION TO THOSE DESCRIBED BELOW, SUCH ADDITIONAL
ENCUMBRANCES WILL BE ADDED TO THE LIST BELOW AND THIS "DRAFTING NOTE" WILL BE
DELETED BEFORE THIS DEED IS ACTUALLY EXECUTED AND DELIVERED BY BNPLC. SUCH
ADDITIONAL ENCUMBRANCES WOULD INCLUDE ANY NEW ENCUMBRANCES APPROVED BY BNPLC AS
"PERMITTED ENCUMBRANCES" UNDER THE LAND LEASE OR THE OTHER LEASE AGREEMENT FROM
TIME TO TIME OR BECAUSE OF EXTREME'S REQUEST FOR BNPLC'S CONSENT OR APPROVAL TO
AN ADJUSTMENT.]

     This conveyance is subject to all encumbrances not constituting a "Lien
Removable by BNPLC" (as defined in the Common Definitions and Provisions
Agreement (Land) incorporated by reference into the Lease Agreement (Land)
referenced in the last item of the list below), including the following matters
to the extent the same are still valid and in force:

1.   TAXES for the fiscal year 2000-2001, a lien not yet due or payable.

2.   The lien of supplemental taxes, if any, assessed pursuant to the provisions
     of Chapter 3.5, (commencing with Section 75) to the Revenue and Taxation
     Code of the State of California.

3.   An easement affecting the portion of said land and for the purpose stated
     herein and incidental purposes,
     In Favor Of:   City of Santa Clara
     For:      electric wire overhang purposes
     Recorded:      November 28, 1960 in Book 4995, Page 160, Official Records
     Affects: Northerly 5 feet of said land, and as shown on the survey prepared
                    by Anthony C. McCants, L.S. 5944, dated April 27, 2000,
                    revised May 22, 2000

4.   The fact that the ownership of said land does not include any right of
     ingress or egress to or from Lawrence Expressway contiguous thereto, said
     right having been relinquished by deed,
     From:     Jefferson Union Elementary School District of the County of Santa
               Clara
     To:       County of Santa Clara, State of California
     Recorded:      June 4, 1965 in Book 6982, Page 1, Official Records

     Said land, however, abuts on a public street other than the one referred to
     above, over which rights of vehicular access have not been relinquished.

5.   An Agreement, affecting said land, for the purposes stated herein and
     subject to the terms, covenants, conditions, restrictions, and easements,
     if any, contained therein
     For:      Postponed Traffic Signal Improvements
     Dated:    October 4, 1983
     Executed by:   City of Santa Clara, California, a municipal corporation
                    and MPJ, a California partnership
     Recorded:      November 16, 1983 in Book I 070, Page 333, Official Records.

6.   An easement affecting the portion of said land and for the purpose stated
     herein and incidental purposes,
     In Favor Of:   City of Santa Clara, a municipal corporation
     For:      roadway purposes and public utilities
     Recorded:      November 30, 1983 in Book I 111, Page 606, Official Records
     Affects:A portion of that certain 24.740 acre parcel of land as shown on
                    that certain Record of Survey filed for record in Book 447
                    of Maps, at page 33, Santa Clara County Records, described
                    as

[Land]                       Exhibit B-1 - Page 5
<PAGE>

                    follows:

     Beginning at a point in the Northerly line of Monroe Avenue, as shown on
     said map at the Westerly terminus of the course shown as N. 89 degrees 25
     minutes 00 seconds E. 760.70; thence from said point of beginning along
     said Northerly line N. 89 degrees 25 minutes 00 seconds E. 760.70 feet and
     N. 2.00 feet; thence leaving said Northerly line along a line parallel with
     said course of N. 89 degrees 25 minutes 00 seconds E.; S. 89 degrees 25
     minutes 00 seconds W. 334.99 feet; thence leaving said parallel line N. 87
     degrees 09 minutes 00 seconds W. 66.79 feet; thence along a line parallel
     with said course N. 89 degrees 25 minutes 00 seconds E.; S. 89 degrees 25
     minutes 00 seconds W. 359.00 feet; thence leaving said Westerly line along
     a tangent curve to the right, with a radius of 50.00 feet, through a
     central angle of 90 degrees 34 minutes 33 seconds for an arc length of
     79.04 feet to a point of cusp in the Westerly line of said 24.740 acre
     parcel; thence along said Westerly line S. 0 degrees 00 minutes 27 seconds
     E. 6.00 feet; thence leaving said Westerly line along a tangent curve to
     the left, with a radius of 50.00 feet, through a central angle of 90
     degrees 34 minutes 33 seconds for an arc length of 79.04 feet to the point
     of beginning, and as shown on the survey prepared by Anthony C. McCants,
     L.S. 5944, dated April 27, 2000, revised May 22, 2000.

7.   An easement affecting the portion of said land and for the purpose stated
     herein and incidental purposes,
     In Favor Of:   City of Santa Clara, a municipal corporation
     For:      underground electrical distribution and/or communication systems
     Recorded:      May 17, 1984 in Book I 552, Page 595, Official Records
     Affects. as follows:

     Parcel 1:

     Commencing at the point of intersection of the Westerly line of that
     certain 24.74 acre parcel of land shown upon that Record of Survey filed
     for recorded August 10, 1979 in Book 447 of Maps, at page 33, Santa Clara
     County Records, with a line parallel with and 10 feet Southerly of,
     measured at right angles to, the Northerly line of said parcel; thence
     along said parallel line N. 89 degrees 25 minutes 00 seconds E. 107.00
     feet; thence parallel with said Westerly line S. 0 degrees 00 minutes 27
     seconds E. 319.16 feet; thence S. 34 degrees 02 minutes 45 seconds W. 87.51
     feet, more or less, to intersection with a line parallel with and 58 feet
     Easterly of measured at right angles to, said Westerly line; thence along
     last said parallel line S. 0 degrees 00 minutes 27 seconds E. 294.30 feet,
     more or less, to intersection with a line parallel with and 5 feet
     Northerly of, measured at right angles to, the Northerly line of that real
     property conveyed to the City of Santa Clara by that deed filed for record
     November 30, 1983 in Book I 111 of Official Records, at page 606, said
     County Records; thence along last said parallel line the following three
     (3) courses: N. 89 degrees 25 minutes 00 seconds E. 351.81 feet; S. 87
     degrees 09 minutes 00 seconds E. 66.79 feet; N. 89 degrees 25 minutes 00
     seconds E. 334.69 feet; thence continuing parallel with the Southerly line
     of first said parcel N. 89 degrees 25 minutes 00 seconds E. 181.89 feet,
     more or less, to termination in the Easterly line of that certain parcel of
     real property conveyed to MPJ Partnership, by that Grant Deed filed for
     record August 25, 1983 in Book H 838 of Official Records, at page 215, said
     County Records.

     Parcel 2:

     A portion of said 24.74 acre parcel of land contiguous to and Northerly of
     said real property conveyed by deed recorded in Book I 111, at page 606,
     contiguous to and Westerly of hereinabove described strip of land and
     bounded on the North by a line parallel with and 5 feet Northerly of,
     measured at right angles to, that course N. 89 degrees 25 minutes 00
     seconds E. 351.81 feet in the hereinabove described centerline.

     Parcel 3:

[Land]                       Exhibit B-1 - Page 6
<PAGE>

     A strip of land 10 feet in width and 30 feet in length of centerline of
     said strip being parallel with and 325.5 feet Southerly of, measured at
     right angles to, said Northerly line of the 24.74 acre parcel and
     terminating on the West in the Easterly line of first hereinabove described
     strip; thence continuing Easterly along last said parallel line for a
     distance of 15 feet, as the centerline of a strip of land 15 feet in width,
     to termination of said centerline and strip.

     Parcel 4:

     A strip of land 10 feet in width and 12 feet in length the centerline of
     said strip being parallel with and 116.5 feet Southerly of, measured at
     right angles to, said Northerly line of the 24.74 acre parcel and
     terminating on the West in the Easterly line of first hereinabove described
     strip; thence continuing Easterly along last said parallel line for a
     distance of 15 feet in width, lying 5 feet Northerly and 10 feet Southerly
     of said parallel line to the Easterly terminus of said strip.

     Parcel 5:

     A strip of land 10 feet in width, the centerline of said strip being
     described as follows:

     Commencing at the point of intersection of the Northerly line of first
     hereinabove described strip of land with a line parallel with and 824.5
     feet Easterly of, measured at right angles to, that course in the Westerly
     boundary of said 24.75 acre parcel bearing N. 0 degrees 00 minutes 27
     seconds W.; thence along last said parallel line N. 0 degrees 00 minutes 27
     seconds W. 367.96 feet, more or less, to a line parallel with and 327 feet
     Southerly of, measured at right angles to, said Northerly line of the 24.74
     acre parcel; thence along last said parallel line S. 89 degrees 25 minutes
     00 seconds W. 78 feet to a line parallel with and 746.5 feet Easterly of,
     measured at right angles to, said Westerly line of the 24.74 acre parcel;
     thence along last said parallel line N. 0 degrees 00 minutes 27 seconds W.
     203 feet; thence continuing as the centerline of a strip of land 15 feet in
     width N. 0 degrees 00 minutes 27 seconds W. 15 feet, more or less, to
     termination of said strip and centerline in a line parallel with and 109
     feet Southerly of, measured at right angles to, last said Northerly line.

     Parcel 6:

     A 15 foot square parcel of land contiguous to and Southerly of last
     hereinabove described 10 foot wide strip of land and centered on the
     Southerly prolongation of hereinabove mentioned course N. 0 degrees 00
     minutes 27 seconds W. 203 feet, and as shown on the survey prepared by
     Anthony C. McCants, L.S. 5944, dated April 27, 2000, revised May 22, 2000.

8.   Lease Agreement (Land) dated as of June 1, 2000, by and between BNP Leasing
     Corporation, as lessor, and Extreme Networks, Inc., as lessee, and Lease
     Agreement (Improvements) dated as of June 1, 2000, by and between BNP
     Leasing Corporation, as lessor, and Extreme Networks, Inc., as lessee.

[Land]

                             Exhibit B-1 - Page 7
<PAGE>

                                  Exhibit B-2
                                  -----------

                            CORPORATION GRANT DEED

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
-------------------------

NAME: [Extreme or the Applicable Purchaser]
ADDRESS:  _______________________________
ATTN:     _______________________________
CITY:     _______________________________
STATE:_______________________________
Zip:      _______________________________

MAIL TAX STATEMENTS TO:
----------------------

NAME: [Extreme or the Applicable Purchaser]
ADDRESS:  _______________________________
ATTN:     _______________________________
CITY:     _______________________________
STATE:_______________________________
Zip:      _______________________________

                            CORPORATION GRANT DEED
             (Covering Land but not the Improvements On the Land)

FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, BNP
LEASING CORPORATION, a Delaware corporation ("Grantor"), hereby grants to
[Extreme or the Applicable Purchaser] ("Grantee") all of Grantor's interest in
the land situated in Santa Clara, California, described on Annex A attached
hereto and hereby made a part hereof (the "Land"), together with the any other
right, title and interest of Grantor in and to any easements, rights-of-way,
privileges and other rights appurtenant to the Land; provided, however, that
this grant is subject to the encumbrances described on Annex B (the "Permitted
Encumbrances") and any reservations or qualifications set forth below. Grantee
hereby assumes the obligations (including any personal obligations) of Grantor,
if any, created by or under, and agrees to be bound by the terms and conditions
of, the Permitted Encumbrances to the extent that the same concern or apply to
the Land.

Although this deed conveys Grantor's interest in the Land itself, this deed does
not convey any interest in any buildings or other improvements on the Land
(collectively, "Improvements") or any rights or easements appurtenant to
Improvements. Grantor retains and reserves all right, title and interest of
Grantor in and to Improvements and any rights and easements appurtenant to
Improvements, together with a leasehold estate in and to the Land and any rights
and easements appurtenant to the Land, which leasehold estate will permit the
construction, maintenance and use of Improvements by Grantor and Grantor's
successors and assigns on and subject to the terms and conditions set forth in
the Ground Lease dated of even date herewith, executed by Grantee, as lessor,
and Grantor, as lessee. Reference is made to such Ground Lease, all the terms
and conditions of which are incorporated into this deed as if set forth herein.

[Land]

                             Exhibit B-2 - Page 2
<PAGE>

                                             BNP LEASING CORPORATING

Date: As of __________                       By:     ___________________________
                                                     Its:

                                             Attest: ___________________________
                                                     Its:

                                             [Extreme or Applicable Purchaser]

Date: As of __________                       By:     ___________________________
                                                     Its:

                                             Attest: ___________________________
                                                     Its:

STATE OF _____________   )
                         )    SS
COUNTY OF ____________   )

     On ___________________ before me,_________, personally appeared________
and___________, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the persons whose names are subscribed to the
within instrument and acknowledged to me that they executed the same in their
authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

     WITNESS my hand and official seal.

     Signature____________________

[Land]

                             Exhibit B-2 - Page 2
<PAGE>

STATE OF ____________      )
                           )  SS
COUNTY OF ___________      )

     On ___________________ before me,_________ , personally appeared________
and____________, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the persons whose names are subscribed to the
within instrument and acknowledged to me that they executed the same in their
authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

     WITNESS my hand and official seal.

     Signature_______________________

[Land]

                             Exhibit B-2 - Page 3
<PAGE>

                                    Annex A

                               LEGAL DESCRIPTION

[DRAFTING NOTE: TO THE EXTENT THAT THE "LAND" COVERED BY THE LAND LEASE CHANGES
---------------
FROM TIME TO TIME BECAUSE OF ADJUSTMENTS FOR WHICH EXTREME REQUESTS BNPLC'S
CONSENT OR APPROVAL, SO TOO WILL THE DESCRIPTION OF THE LAND BELOW CHANGE. ANY
SUCH CHANGES WILL BE INCORPORATED INTO THE DESCRIPTION BELOW AND THIS "DRAFTING
NOTE" WILL BE DELETED BEFORE THE DEED TO WHICH THIS DESCRIPTION IS ATTACHED IS
ACTUALLY EXECUTED AND DELIVERED.]

All that certain real property situated in the City of Santa Clara, County of
Santa Clara, State of California, described as follows:

Being a portion of that certain 24.740 acre parcel as shown on that certain
Record of Survey filed in Book 447 of Maps, at Page 33, Santa Clara County
Records, described as follows:

Beginning at the Northwest corner of said 24.740 acre parcel; thence from said
point of beginning along the Northerly line of said 24.470 acre parcel N. 89
degrees 25 minutes 00 seconds E. 995.17 feet; thence leaving said Northerly
lines S. 0 degrees 10 minutes 00 seconds W. 705.02 feet to a point in the
Southerly line of said 24.740 acre parcel; thence along said Southerly line the
following courses: S. 89 degrees 25 minutes 00 seconds W. 181.82 feet; S. 2.00
feet and S. 89 degrees 25 minutes 00 seconds W. 760.70 feet; thence leaving said
Southerly line along a tangent curve to the right, with a radius of 50.00 feet,
through a central angle of 90 degrees 34 minutes 33 seconds for an arc length of
79.4 feet to a point in the Westerly line of said 24.470 acre parcel; thence
along said Westerly line N. 0 degrees 00 minutes 27 seconds W. 656.49 feet to
the point of beginning.

[Land]

                             Exhibit B-2 - Page 4
<PAGE>

                                    Annex B

                            Permitted Encumbrances

[DRAFTING NOTE: TO THE EXTENT THAT ENCUMBRANCES (OTHER THAN "LIENS REMOVABLE BY
---------------
BNPLC") ARE IDENTIFIED IN ADDITION TO THOSE DESCRIBED BELOW, SUCH ADDITIONAL
ENCUMBRANCES WILL BE ADDED TO THE LIST BELOW AND THIS "DRAFTING NOTE" WILL BE
DELETED BEFORE THIS DEED IS ACTUALLY EXECUTED AND DELIVERED BY BNPLC. SUCH
ADDITIONAL ENCUMBRANCES WOULD INCLUDE ANY NEW ENCUMBRANCES APPROVED BY BNPLC AS
"PERMITTED ENCUMBRANCES" UNDER THE LAND LEASE OR THE OTHER LEASE AGREEMENT FROM
TIME TO TIME OR BECAUSE OF EXTREME'S REQUEST FOR BNPLC'S CONSENT OR APPROVAL TO
AN ADJUSTMENT.]

     This conveyance is subject to all encumbrances not constituting a "Lien
Removable by BNPLC" (as defined in the Common Definitions and Provisions
Agreement (Land) incorporated by reference into the Lease Agreement (Land)
referenced in the last item of the list below), including the following matters
to the extent the same are still valid and in force:

1.   TAXES for the fiscal year 2000-2001, a lien not yet due or payable.

2.   The lien of supplemental taxes, if any, assessed pursuant to the provisions
     of Chapter 3.5, (commencing with Section 75) to the Revenue and Taxation
     Code of the State of California.

3.   An easement affecting the portion of said land and for the purpose stated
     herein and incidental purposes,
     In Favor Of:   City of Santa Clara
     For:      electric wire overhang purposes
     Recorded:      November 28, 1960 in Book 4995, Page 160, Official Records
     Affects: Northerly 5 feet of said land, and as shown on the survey prepared
                    by Anthony C. McCants, L.S. 5944, dated April 27, 2000,
                    revised May 22, 2000

4.   The fact that the ownership of said land does not include any right of
     ingress or egress to or from Lawrence Expressway contiguous thereto, said
     right having been relinquished by deed,
     From:     Jefferson Union Elementary School District of the County of Santa
               Clara
     To:       County of Santa Clara, State of California
     Recorded:      June 4, 1965 in Book 6982, Page 1, Official Records

     Said land, however, abuts on a public street other than the one referred to
     above, over which rights of vehicular access have not been relinquished.

5.   An Agreement, affecting said land, for the purposes stated herein and
     subject to the terms, covenants, conditions, restrictions, and easements,
     if any, contained therein
     For:     Postponed Traffic Signal Improvements
     Dated:   October 4, 1983
     Executed by: City of Santa Clara, California, a municipal corporation and
                  MPJ, a California partnership
     Recorded:    November 16, 1983 in Book I 070, Page 333, Official Records.

6.   An easement affecting the portion of said land and for the purpose stated
     herein and incidental purposes,
     In Favor Of:   City of Santa Clara, a municipal corporation
     For:   roadway purposes and public utilities
     Recorded:      November 30, 1983 in Book I 111, Page 606, Official Records
     Affects: A portion of that certain 24.740 acre parcel of land as shown on
                    that certain Record of Survey filed for record in Book 447
                    of Maps, at page 33, Santa Clara County Records, described
                    as

[Land]

                             Exhibit B-2 - Page 5
<PAGE>

                    follows:

     Beginning at a point in the Northerly line of Monroe Avenue, as shown on
     said map at the Westerly terminus of the course shown as N. 89 degrees 25
     minutes 00 seconds E. 760.70; thence from said point of beginning along
     said Northerly line N. 89 degrees 25 minutes 00 seconds E. 760.70 feet and
     N. 2.00 feet; thence leaving said Northerly line along a line parallel with
     said course of N. 89 degrees 25 minutes 00 seconds E.; S. 89 degrees 25
     minutes 00 seconds W. 334.99 feet; thence leaving said parallel line N. 87
     degrees 09 minutes 00 seconds W. 66.79 feet; thence along a line parallel
     with said course N. 89 degrees 25 minutes 00 seconds E.; S. 89 degrees 25
     minutes 00 seconds W. 359.00 feet; thence leaving said Westerly line along
     a tangent curve to the right, with a radius of 50.00 feet, through a
     central angle of 90 degrees 34 minutes 33 seconds for an arc length of
     79.04 feet to a point of cusp in the Westerly line of said 24.740 acre
     parcel; thence along said Westerly line S. 0 degrees 00 minutes 27 seconds
     E. 6.00 feet; thence leaving said Westerly line along a tangent curve to
     the left, with a radius of 50.00 feet, through a central angle of 90
     degrees 34 minutes 33 seconds for an arc length of 79.04 feet to the point
     of beginning, and as shown on the survey prepared by Anthony C. McCants,
     L.S. 5944, dated April 27, 2000, revised May 22, 2000.

7.   An easement affecting the portion of said land and for the purpose stated
     herein and incidental purposes,
     In Favor Of:   City of Santa Clara, a municipal corporation
     For:   underground electrical distribution and/or communication systems
     Recorded:      May 17, 1984 in Book I 552, Page 595, Official Records
     Affects. as follows:

     Parcel 1:

     Commencing at the point of intersection of the Westerly line of that
     certain 24.74 acre parcel of land shown upon that Record of Survey filed
     for recorded August 10, 1979 in Book 447 of Maps, at page 33, Santa Clara
     County Records, with a line parallel with and 10 feet Southerly of,
     measured at right angles to, the Northerly line of said parcel; thence
     along said parallel line N. 89 degrees 25 minutes 00 seconds E. 107.00
     feet; thence parallel with said Westerly line S. 0 degrees 00 minutes 27
     seconds E. 319.16 feet; thence S. 34 degrees 02 minutes 45 seconds W. 87.51
     feet, more or less, to intersection with a line parallel with and 58 feet
     Easterly of measured at right angles to, said Westerly line; thence along
     last said parallel line S. 0 degrees 00 minutes 27 seconds E. 294.30 feet,
     more or less, to intersection with a line parallel with and 5 feet
     Northerly of, measured at right angles to, the Northerly line of that real
     property conveyed to the City of Santa Clara by that deed filed for record
     November 30, 1983 in Book I 111 of Official Records, at page 606, said
     County Records; thence along last said parallel line the following three
     (3) courses: N. 89 degrees 25 minutes 00 seconds E. 351.81 feet; S. 87
     degrees 09 minutes 00 seconds E. 66.79 feet; N. 89 degrees 25 minutes 00
     seconds E. 334.69 feet; thence continuing parallel with the Southerly line
     of first said parcel N. 89 degrees 25 minutes 00 seconds E. 181.89 feet,
     more or less, to termination in the Easterly line of that certain parcel of
     real property conveyed to MPJ Partnership, by that Grant Deed filed for
     record August 25, 1983 in Book H 838 of Official Records, at page 215, said
     County Records.

     Parcel 2:

     A portion of said 24.74 acre parcel of land contiguous to and Northerly of
     said real property conveyed by deed recorded in Book I 111, at page 606,
     contiguous to and Westerly of hereinabove described strip of land and
     bounded on the North by a line parallel with and 5 feet Northerly of,
     measured at right angles to, that course N. 89 degrees 25 minutes 00
     seconds E. 351.81 feet in the hereinabove described centerline.

     Parcel 3:

[Land]

                             Exhibit B-2 - Page 6
<PAGE>

     A strip of land 10 feet in width and 30 feet in length of centerline of
     said strip being parallel with and 325.5 feet Southerly of, measured at
     right angles to, said Northerly line of the 24.74 acre parcel and
     terminating on the West in the Easterly line of first hereinabove described
     strip; thence continuing Easterly along last said parallel line for a
     distance of 15 feet, as the centerline of a strip of land 15 feet in width,
     to termination of said centerline and strip.

     Parcel 4:

     A strip of land 10 feet in width and 12 feet in length the centerline of
     said strip being parallel with and 116.5 feet Southerly of, measured at
     right angles to, said Northerly line of the 24.74 acre parcel and
     terminating on the West in the Easterly line of first hereinabove described
     strip; thence continuing Easterly along last said parallel line for a
     distance of 15 feet in width, lying 5 feet Northerly and 10 feet Southerly
     of said parallel line to the Easterly terminus of said strip.

     Parcel 5:

     A strip of land 10 feet in width, the centerline of said strip being
     described as follows:

     Commencing at the point of intersection of the Northerly line of first
     hereinabove described strip of land with a line parallel with and 824.5
     feet Easterly of, measured at right angles to, that course in the Westerly
     boundary of said 24.75 acre parcel bearing N. 0 degrees 00 minutes 27
     seconds W.; thence along last said parallel line N. 0 degrees 00 minutes 27
     seconds W. 367.96 feet, more or less, to a line parallel with and 327 feet
     Southerly of, measured at right angles to, said Northerly line of the 24.74
     acre parcel; thence along last said parallel line S. 89 degrees 25 minutes
     00 seconds W. 78 feet to a line parallel with and 746.5 feet Easterly of,
     measured at right angles to, said Westerly line of the 24.74 acre parcel;
     thence along last said parallel line N. 0 degrees 00 minutes 27 seconds W.
     203 feet; thence continuing as the centerline of a strip of land 15 feet in
     width N. 0 degrees 00 minutes 27 seconds W. 15 feet, more or less, to
     termination of said strip and centerline in a line parallel with and 109
     feet Southerly of, measured at right angles to, last said Northerly line.

     Parcel 6:

     A 15 foot square parcel of land contiguous to and Southerly of last
     hereinabove described 10 foot wide strip of land and centered on the
     Southerly prolongation of hereinabove mentioned course N. 0 degrees 00
     minutes 27 seconds W. 203 feet, and as shown on the survey prepared by
     Anthony C. McCants, L.S. 5944, dated April 27, 2000, revised May 22, 2000.

8.   Lease Agreement (Land) dated as of June 1, 2000, by and between BNP Leasing
     Corporation, as lessor, and Extreme Networks, Inc., as lessee, and Lease
     Agreement (Improvements) dated as of June 1, by and between BNP Leasing
     Corporation, as lessor, and Extreme Networks, Inc., as lessee.

[Land]

                             Exhibit B-2 - Page 7
<PAGE>

                                  Exhibit B-3
                                  -----------

                                 GROUND LEASE

     This GROUND LEASE (this "Ground Lease"), by and between BNP LEASING
CORPORATION, a Delaware corporation ("BNPLC"), whose address is 12201 Merit
Drive, Suite 860,Dallas, Texas 75251, and [Extreme or the Applicable Purchaser],
a ___________ ("Lessor"), whose address is ____________________. as of
____________, ____ (the "GL Effective Date").

                                   RECITALS

     This Ground Lease is being executed pursuant to a Purchase Agreement (Land)
dated as of June 1, 2000 (the "Purchase Agreement"), between BNP Leasing
Corporation and Extreme Networks, Inc., covering the land described in Annex 1
                                                                       -------
attached hereto (the "Land"). Incorporated by reference into the Purchase
Agreement is a Common Definitions and Provisions Agreement (Land) dated as of
the effective date of the Purchase Agreement (the "CDPA"), between BNP Leasing
Corporation and Extreme Networks, Inc. The CDPA is hereby incorporated into and
made a part of this Ground Lease for all purposes. Capitalized terms defined in
the CDPA and used but not otherwise defined herein are intended in this Ground
Lease to have the respective meanings ascribed to them in the CDPA. The
provisions in Article II of the CDPA are intended to apply to this Ground Lease
as if set forth herein and as if this Ground Lease were one of the "Operative
Documents" as defined therein.

     Lessor and BNPLC have reached agreement as to the terms and conditions upon
which Lessor is willing to lease the Land described in Annex 1 to BNPLC for a
                                                       -------
term of approximately just less that 35 years, and by this Ground Lease Lessor
and BNPLC desire to evidence such agreement.

                               GRANTING CLAUSES

     NOW, THEREFORE, in consideration of the rent to be paid and the covenants
and agreements to be performed by BNPLC, as hereinafter set forth, Lessor does
hereby LEASE, DEMISE and LET unto BNPLC for the term hereinafter set forth the
Land, together with:

          (1   all easements and rights-of-way now owned or hereafter acquired
     by Lessor for use in connection with the Land or as a means of access
     thereto; and

          (2   all right, title and interest of Lessor, now owned or hereafter
     acquired, in and to (A) any land lying within the right-of-way of any
     street, open or proposed, adjoining the Land, (B) any and all sidewalks and
     alleys adjacent to the Land and (C) any strips and gores between the Land
     and any abutting land not owned by Lessor.

The Land and all of the property described in the preceding clauses (1) and (2)
are hereinafter referred to collectively as the "Real Property".

     To the extent, but only to the extent, that assignable rights or interests
in, to or under the following have been or will be acquired by Lessor as the
owner of any interest in the Real Property, Lessor also hereby grants and
assigns to BNPLC for the term of this Ground Lease (and thereafter, if BNPLC
purchases the Real Property from

[Land]
<PAGE>

Lessor pursuant to the Repurchase Option described in Paragraph 12) the right to
use and enjoy (and, in the case of contract rights, to enforce) such rights or
interests of Lessor:

          (a)  the Permitted Encumbrances; and

          (b)  any general intangibles, permits, licenses, franchises,
     certificates, and other rights and privileges related to the Real Property
     that BNPLC (rather than Lessor) would have acquired if BNPLC had itself
     acquired the fee estate in the Real Property (excluding, however, any
     rights and privileges of Lessor under this Ground Lease, any rights or
     privileges of Lessor under the Purchase Agreement or other Operative
     Documents, and [without limiting Lessor's obligations under subparagraphs
     4.(B), 6.(B) or 6.(C)] any rights and privileges of Lessor under the
     Development Documents described in Annex 3).
                                        -------

Such rights and interests of Lessor, whether now existing or hereafter arising,
are hereinafter collectively called the "GL Personal Property". The Real
Property and the GL Personal Property are hereinafter sometimes collectively
called the "GL Property."

     Provided, however, the leasehold estate conveyed hereby and BNPLC's rights
hereunder are expressly made subject and subordinate to the Permitted
Encumbrances, including those listed on Annex 2. FURTHER, IF AND SO LONG AS THE
                                        -------
OTHER LEASE AGREEMENT AND THE OTHER PURCHASE AGREEMENT (BOTH AS DEFINED IN THE
-     -     -                 -     -        -
CDPA) REMAIN IN FORCE, THE RIGHTS AND OBLIGATIONS OF LESSOR AND BNPLC HEREUNDER
----                                                 -          -----
SHALL BE SUBJECT TO ANY CONTRARY PROVISIONS THEREIN. ACCORDINGLY, BNPLC'S RIGHTS
                                                                  -----
UNDER PARAGRAPH 7 BELOW SHALL BE SUBJECT TO THE PROVISIONS GOVERNING INSURANCE
AND CONDEMNATION IN THE OTHER LEASE AGREEMENT, IF AND SO LONG AS THE OTHER LEASE
                        -     -     -                                -     -
AGREEMENT REMAINS IN FORCE.
-

                         GENERAL TERMS AND CONDITIONS

     The GL Property is leased by Lessor to BNPLC and is accepted and is to be
used and possessed by BNPLC upon and subject to the following terms and
conditions:

     1.   Ground Lease Term and Early Termination by BNPLC. The term of this
Ground Lease (the "Ground Lease Term") shall commence on and include the GL
Effective Date and end on last Business Day prior to the thirty-fifth
anniversary of the GL Effective Date. However, subject to the prior approval of
any Leasehold Mortgagee, BNPLC shall have the right to terminate this Ground
Lease by giving a notice to Lessor stating that BNPLC unequivocally elects to
terminate effective as of a date specified in such notice, which may be any date
more than thirty days after the notice and after the expiration or termination
of the Lease pursuant to its terms.

     2.   No Other Ground Lease Termination. Except as expressly provided
herein, this Ground Lease shall not terminate, nor shall Lessor have any right
to terminate this Ground Lease, nor shall the obligations of Lessor under this
Ground Lease be excused, for any reason whatsoever, including any of the
following: (i) any damage to or the destruction of all or any part of the GL
Property from whatever cause, (ii) the taking of the GL Property or any portion
thereof by eminent domain or otherwise for any reason, (iii) any default on the
part of BNPLC under this Ground Lease or under any other agreement to which
Lessor and BNPLC are parties, or (iv) any other cause whether similar or
dissimilar to the foregoing, any existing or future law to the contrary
notwithstanding. It is the intention of the parties hereto that the obligations
of Lessor hereunder shall be separate and independent of the covenants and
agreements of BNPLC. However, nothing in this Paragraph shall be construed as a
waiver by Lessor of any right Lessor may have at law or in equity to recover
monetary damages for any default under this Ground Lease by BNPLC.

[Land]

                             Exhibit B-3 - Page 2
<PAGE>

     3.   Ground Lease Rent. On each anniversary of the GL Effective Date,
BNPLC shall make a payment to Lessor of rent for the then preceding year
("Ground Lease Rent"), in currency that at the time of payment is legal tender
for public and private debts in the United States of America. Each such payment
of Ground Lease Rent shall equal the Fair Rental Value, determined as provided
in Annex 4.
   -------

     4.   Use of GL Property.

          (A0  Permitted Uses and Construction of Improvements. Subject
               -----------------------------------------------
to the Permitted Encumbrances and the terms hereof, BNPLC may use and occupy the
GL Property for any purpose permitted by Applicable Laws and may construct,
maintain and use any Improvements on the Land which are permitted by Applicable
Laws.

          (B0  Cooperation by Lessor and its Affiliates.
               ----------------------------------------

          (1   After the expiration or any earlier termination of the Lease, if
     a use of the GL Property by BNPLC or any new Improvements or any removal or
     modification of Improvements proposed by BNPLC would violate any Permitted
     Encumbrance, Development Document or Applicable Law unless Lessor or any of
     its Affiliates, as an owner of adjacent property or otherwise, gave its
     consent or approval thereto or agreed to join in a modification of a
     Permitted Encumbrance or Development Document, then Lessor shall give and
     cause its Affiliates to give such consent or approval or join in such
     modification.

          (2   To the extent, if any, that any Permitted Encumbrance,
     Development Document or Applicable Law requires the consent or approval of
     Lessor or any of its Affiliates or of the City of Santa Clara or any other
     Person to an assignment of this Ground Lease or a transfer of any interest
     in the GL Property by BNPLC or its successors or assigns, Lessor will
     without charge give and cause its Affiliates to give such consent or
     approval and will cooperate in any way reasonably requested by BNPLC to
     assist BNPLC to obtain such consent or approval from the City or any other
     Person; provided, however, the assignment or transfer is not then
     prohibited by the Lease.

          (3   Lessor's obligations under this subparagraph 4.(B) shall be
     binding upon any successor or assign of Lessor with respect to the Land and
     other properties encumbered by the Permitted Encumbrances or subject to the
     Development Documents, and such obligations shall survive any sale of
     Lessor's interest in the GL Property to BNPLC because of BNPLC's exercise
     of the Repurchase Option (as defined in Paragraph 12).

          (C0  Title to Improvements. Any and all Improvements of whatever
               ---------------------
nature at any time constructed, placed or maintained upon any part of the Land
shall be and remain the property of BNPLC and BNPLC's sublessee's, assignees,
licensees and concessionaires, as their interests may appear; provided, any such
Improvements which remain on the Land when this Ground Lease expires or is
terminated shall become and thereupon be the property of Lessor, free and clear
of any Liens Removable by BNPLC. It is the intention of Lessor and BNPLC that
severance of fee title to the Land and the Improvements shall not change the
character of the Improvements as real property. BNPLC may at any time after
Lessor ceases to have possession of the GL Property as tenant under the Lease
and prior to the expiration or termination of this Ground Lease remove all or
any Improvements from the Land without the consent of Lessor and without any
obligation to Lessor or its Affiliates to provide compensation or to construct
other Improvements on or about the Land.

     5.   Assignment and Subletting; Pass Through of BNPLC'S Liability
Insurance and Indemnity Rights. BNPLC may sublet or assign this Ground Lease
without the consent of Lessor or any of its Affiliates, subject only to
limitations set forth in the Lease for the benefit of Lessor so long as those
limitations

[Land]

                             Exhibit B-3 - Page 3
<PAGE>

remain in force.

     To the extent that BNPLC may from time to time after the expiration or
earlier termination of the Other Lease Agreement require any subtenant to agree
to maintain liability insurance against claims of third parties and agree to
make BNPLC an additional or named insured under such insurance, BNPLC shall also
require the subtenant to agree to make Lessor an additional or named insured.
However, BNPLC shall have no liability to Lessor for a breach by the subtenant
of any such agreements, and to the extent that BNPLC's rights as an additional
or named insured are subject to exceptions or limitations concerning BNPLC's own
acts or omissions or the acts or omissions of anyone other than the subtenant,
so too may Lessor's rights as an additional or named insured be subject to
exceptions or limitations concerning Lessor's own acts or omissions or the acts
or omissions of anyone other than the subtenant.

     To the extent that BNPLC may itself from time to time after the expiration
or earlier termination of the Other Lease Agreement maintain liability insurance
against claims of third parties which may arise because of any occurrence on or
alleged to have occurred on or about the GL Property, BNPLC shall cause Lessor
to be an additional or named insured under such insurance, provided Lessor pays
or reimburses BNPLC for any additional insurance premium required to have Lessor
made an insured.

     To the extent that BNPLC may from time to time after the expiration or
earlier termination of the Other Lease Agreement require any subtenant to agree
to indemnify BNPLC against Environmental Losses or other Losses concerning the
GL Property, BNPLC shall also require the subtenant to agree to indemnify
Lessor. However, BNPLC shall have no liability to Lessor for a breach by the
subtenant of any such agreement, and to the extent that BNPLC's rights as an
indemnitee of the subtenant are subject to exceptions or limitations concerning
BNPLC's own acts or omissions or the acts or omissions of anyone other than the
subtenant, so too may Lessor's rights as an indemnitee be subject to exceptions
or limitations concerning Lessor's own acts or omissions or the acts or
omissions of anyone other than the subtenant.

     6.   Representations, Warranties and Covenants of Lessor Concerning the
Property. Lessor represents, warrants and covenants as follows:

          (A0  Title to the Property. This Ground Lease shall vest in BNPLC good
               ---------------------
and marketable title to a leasehold estate in the Land, subject only to the
terms and conditions hereof, the Permitted Encumbrances, the Development
Documents and any Liens Removable by BNPLC. Lessor shall not, without the prior
consent of BNPLC, create, place or authorize, or through any act or failure to
act, acquiesce in the placing of, any deed of trust, mortgage or other Lien,
whether statutory, constitutional or contractual against or covering the GL
Property or any part thereof (other than Permitted Encumbrances and Liens
Removable by BNPLC), regardless of whether the same are expressly or otherwise
subordinate to the Operative Documents or BNPLC's interest in the Property.

          (B0  Modification of Permitted Encumbrances and Development Documents.
               ----------------------------------------------------------------
Without the prior consent of BNPLC, Lessor shall not enter into, initiate,
approve or consent to any modification of any Permitted Encumbrance or
Development Document that would create or expand or purport to create or expand
obligations or restrictions which would encumber the GL Property or any
improvements constructed thereon.

          (C0  Performance and Preservation of the Development Documents and
               -------------------------------------------------------------
Permitted Encumbrances for the Benefit of BNPLC. Not only during the term of the
-----------------------------------------------
Other Lease Agreement, but thereafter throughout the term of this Ground Lease,
Lessor shall comply with and perform the obligations imposed by the Permitted
Encumbrances and the Development Documents upon Lessor or upon any owner of the
Land, and shall do whatever is required to preserve the rights and benefits
conferred or intended to be conferred by the Permitted Encumbrances and the
Development Documents, as necessary to facilitate any construction contemplated
in the Other Lease Agreement and the use of the Improvements by BNPLC and its
successors, assigns and subtenants under this Ground Lease after the expiration
or any earlier termination of the Other Lease Agreement. Further, if

[Land]

                             Exhibit B-3 - Page 4
<PAGE>

Lessor or any Affiliate of Lessor now or hereafter owns, acquires or leases land
(other than the Land) that is the subject of a Permitted Encumbrance or
Development Document, then Lessor shall, and shall cause its Affiliate to,
assume liability for and indemnify BNPLC and other Interested Parties and defend
and hold them harmless from and against all Losses (including Losses caused by
any decline in the value of the Property or of the Improvements) that they would
not have incurred or suffered but for (i) a termination of such Permitted
Encumbrance or Development Document, to which Lessor or its Affiliate agreed, or
which resulted from a breach thereof by Lessor or its Affiliate, or (ii) a
refusal of Lessor or its Affiliate to agree to any waiver or modification
requested by BNPLC of restrictions upon the Property or the transfer thereof
imposed by such Permitted Encumbrance or Development Document, or (iii) anything
done, authorized or suffered by Lessor or its Affiliate in violation of such
Permitted Encumbrance or Development Document. Lessor's obligations under this
subparagraph 6.(C) shall be binding upon any successor or assign of Lessor or
its Affiliates with respect to their interest in properties subject to the
Development Documents and Permitted Encumbrances.

          7.   Insurance and Condemnation.

               (A0 Entitlement to Insurance and Condemnation Proceeds. All
                   --------------------------------------------------
insurance and condemnation proceeds payable with respect to any damage to or
taking of the GL Property shall be payable to and become the property of BNPLC;
provided, however, Lessor shall be entitled to receive condemnation proceeds
awarded for the value of Lessor's remainder interest in the Land exclusive of
the Improvements. BNPLC is authorized to take all action necessary on behalf of
both BNPLC and Lessor (as lessor under this Ground Lease) to collect insurance
and condemnation proceeds.

               (B0 Collection of Insurance Proceeds. In the event any of the GL
                   --------------------------------
Property is destroyed or damaged by fire, explosion, windstorm, hail or by any
other casualty against which insurance shall have been required hereunder, (i)
BNPLC may make proof of loss, (ii) each insurance company concerned is hereby
authorized and directed to make payment for such loss directly to BNPLC for
application as required by subparagraph 7.(A), and (iii) BNPLC's consent must be
obtained for any settlement, adjustment or compromise of any claims for loss,
damage or destruction under any policy or policies of insurance.

               (C0 Collection of Condemnation Proceeds. All proceeds of
                   -----------------------------------
condemnation awards or proceeds of sale in lieu of condemnation with respect to
the GL Property and all judgments, decrees and awards for injury or damage to
the GL Property shall be paid to BNPLC and applied as provided in subparagraph
7.(A) above. BNPLC is hereby authorized, in the name of Lessor, to execute and
deliver valid acquittances for, and to appeal from, any such judgment, decree or
award concerning condemnation of any of the GL Property. BNPLC shall not be, in
any event or circumstances, liable or responsible for failure to collect, or to
exercise diligence in the collection of, any such proceeds, judgments, decrees
or awards.

          8.   Leasehold Mortgages.

               (A0  By Leasehold Mortgage BNPLC may encumber BNPLC's leasehold
estate in the GL Property created by this Ground Lease, as well as BNPLC's
rights and interests in buildings, fixtures, equipment and Improvements situated
on the Land and rents, issues, profits, revenues and other income to be derived
by BNPLC therefrom.

               (B0  Any Leasehold Mortgagee or other party, including any
corporation formed by a Leasehold Mortgagee, may become the legal owner of the
leasehold estate created by this Ground Lease, and of the Improvements,
equipment, fixtures and other property assigned as additional security pursuant
to a Leasehold Mortgage, by foreclosure of a Leasehold Mortgage or as a result
of the assignment or conveyance in lieu of foreclosure. Further, any such
Leasehold Mortgagee or other party may itself, after becoming the legal owner
and holder of the leasehold estate created by this Ground Lease, or of any
Improvements, equipment, fixtures and other

                             Exhibit B-3 - Page 5

[Land]
<PAGE>

property assigned as additional security pursuant to a Leasehold Mortgage,
convey or pledge the same without the consent of Lessor.

               (C0  Lessor shall serve notice of any default by BNPLC hereunder
upon any Leasehold Mortgagee. No notice of a default by BNPLC shall be deemed
effective until it is so served. Any Leasehold Mortgagee shall have the right to
correct or cure any such default within the same period of time after receipt of
such notice as is given to BNPLC under this Ground Lease to correct or cure
defaults, plus an additional period of thirty days thereafter. Lessor will
accept performance by any Leasehold Mortgagee of any covenant, condition or
agreement on BNPLC's part to be performed hereunder with the same force and
effect as though performed by BNPLC.

               (D0  If this Ground Lease should terminate by reason of a
disaffirmance or rejection of this Ground Lease by BNPLC or any receiver,
liquidator or trustee for the property of BNPLC, or by any governmental
authority which had taken possession of the business or property of BNPLC by
reason of the insolvency or alleged insolvency of BNPLC, then:

               (1        Lessor shall give notice thereof to each Leasehold
          Mortgagee; and upon request of any Leasehold Mortgagee made within
          sixty days after Lessor has given such notice, Lessor shall enter into
          a new ground lease of the GL Property with such Leasehold Mortgagee
          for the remainder of the Ground Lease Term, at the same Ground Lease
          Rent and on the same terms and conditions as contained in this Ground
          Lease.

               (2        The estate of the Leasehold Mortgagee, as lessee under
          the new lease, shall have priority equal to the estate of BNPLC
          hereunder. That is, there shall be no charge, lien or burden upon the
          GL Property prior to or superior to the estate granted by such new
          lease which was not prior to or superior to the estate of BNPLC under
          this Ground Lease as of the date immediately preceding the termination
          of this Ground Lease.

               (3        Notwithstanding the foregoing, if Lessor shall receive
          requests to enter into a new ground lease from more than one Leasehold
          Mortgagee, Lessor shall be required to enter into only one new ground
          lease, and the new ground lease shall be to the requesting Leasehold
          Mortgagee who holds the highest priority lien or interest in BNPLC's
          leasehold estate in the Land. If the liens or security interests of
          two or more such requesting Leasehold Mortgagees which shared the
          highest priority just prior to the termination of this Ground Lease,
          the new ground lease shall name all such Leasehold Mortgagees as co-
          tenants thereunder.

               (E0  If BNPLC has agreed with any Leasehold Mortgagee that such
Leasehold Mortgagee's consent will be required to any modification or early
termination of this Ground Lease by BNPLC, and if Lessor has been notified of
such agreement, such consent will be required.

               (F0  No Leasehold Mortgagee will assume any liability under this
Ground Lease either by virtue of its Leasehold Mortgage or by any subsequent
receipt or collection of rents or profits generated from the GL Property, unless
and until the Leasehold Mortgagee acquires BNPLC's leasehold estate in the GL
Property at foreclosure or by deed in lieu of foreclosure.

               (G0  Although the foregoing provisions concerning Leasehold
Mortgages and Leasehold Mortgagees will be self operative, Lessor agrees to
include, in addition to the items specified in Paragraph 11, confirmation of the
foregoing in any statement provided to a Leasehold Mortgagee or prospective
Leasehold Mortgagee pursuant to Paragraph 11.

                             Exhibit B-3 - Page 6

[Land]
<PAGE>

          9.   Events of Default.

               (A0  Definition of Ground Lease Default.  Each of the following
                    ----------------------------------
events shall be deemed to be a "Ground Lease Default" by BNPLC under this Ground
Lease:

               (1   BNPLC shall fail to pay when due any installment of Ground
          Lease Rent due hereunder and such failure shall continue for sixty
          days after BNPLC receives notice thereof.

               (2   BNPLC shall fail to comply with any term, provision or
          covenant of this Ground Lease (other than as described in the other
          clauses of this subparagraph 9.(A)), and shall not cure such failure
          prior to the earlier of (A) ninety days after notice thereof is sent
          to BNPLC, or (B) the date any writ or order is issued for the levy or
          sale of any property owned by Lessor or its Affiliates (including the
          GL Property) because of such failure or any criminal action is
          instituted against BNPLC or any of its directors, officers or
          employees because of such failure; provided, however, that so long as
          no such writ or order is issued and no such criminal actions is
          instituted, if such failure is susceptible of cure but cannot with
          reasonable diligence be cured within such ninety day period, and if
          BNPLC shall promptly have commenced to cure the same and shall
          thereafter prosecute the curing thereof with reasonable diligence, the
          period within which such failure may be cured shall be extended for
          such further period as shall be necessary for the curing thereof with
          reasonable diligence.

               (B0  Remedy. Upon the occurrence of a Ground Lease Default which
                    ------
is not cured within any applicable period expressly permitted by subparagraph
9.(A), Lessor's sole and exclusive remedies shall be to sue BNPLC for the
collection of any amount due under this Ground Lease, to sue for the specific
enforcement of BNPLC's obligations hereunder, or to enjoin the continuation of
the Ground Lease Default; provided, however, no limitation of Lessor's remedies
contained herein will prevent Lessor from recovering any reasonable costs Lessor
may incur to mitigate its damages by curing a Ground Lease Default that BNPLC
has failed to cure itself (so long as the cure by Lessor is pursued in a lawful
manner and the costs Lessor seeks to recover do not exceed the actual damages to
be mitigated). Lessor may not terminate this Ground Lease or BNPLC's right to
possession under this Ground Lease. Any judgment which Lessor may obtain against
BNPLC for amounts due under this Ground Lease may be collected only through
resort of a judgement lien against BNPLC's interest in the GL Property and any
Improvements. BNPLC shall have no personal liability for the payment amounts due
under this or for the performance of any obligations of BNPLC under this Ground
Lease.

          10.  Quiet Enjoyment.  Neither Lessor nor any third party lawfully
claiming any right or interest in the GL Property shall during the Ground Lease
Term disturb BNPLC's peaceable and quiet enjoyment of the GL Property; however,
such enjoyment shall be subject to the terms, provisions, covenants, agreements
and conditions of this Ground Lease and the Permitted Encumbrances, to which
this Ground Lease is subject and subordinate as hereinabove set forth.

         11.   Estoppel Certificate.  Lessor shall from time to time, within ten
days after receipt of request by BNPLC, deliver a statement in writing
certifying:

               (A0  that this Ground Lease is unmodified and in full force and
effect (or if modified that this Ground Lease as so modified is in full force
and effect);

               (B0  that to the knowledge of Lessor BNPLC has not previously
assigned or hypothecated its rights or interests under this Ground Lease, except
as is described in such statement with as much specificity as Lessor is able to
provide;

               (C0  the term of this Ground Lease and the Ground Lease Rent
then in effect and any additional

                             Exhibit B-3 - Page 7

[Land]
<PAGE>

charges;

               (D0  that BNPLC is not in default under any provision of this
Ground Lease (or if in default, the nature thereof in detail) and a statement as
to any outstanding obligations on the part of Lessor or BNPLC; and

               (E0  such other matters as are reasonably requested by BNPLC.

Lessor's failure to deliver such statement within such time shall be conclusive
upon BNPLC (i) that this Ground Lease is in full force and effect, without
modification except as may be represented by BNPLC, (ii) that there are no
uncured defaults in BNPLC's performance hereunder.

          12.  Option To Repurchase.  Subject to the terms and conditions set
forth in Annex 5, BNPLC (and any assignee of BNPLC's entire interest in the GL
         -------
Property, but not any subtenant or assignee of a lesser interest) shall have the
option (the "Repurchase Option") to purchase Lessor's interest in the GL
Property. To secure BNPLC's right to recover any damages caused by a breach of
the Repurchase Option or other provisions of this Ground Lease by Lessor,
including any such breach caused by a rejection or termination of this Ground
Lease in any bankruptcy or insolvency proceeding instituted by or against
Lessor, as debtor, Lessor does hereby grant to BNPLC a lien and security
interest against the Land and against all rights, title and interests of Lessor
from time to time in and to the GL Property.

                         [The signature pages follow.]

                             Exhibit B-3 - Page 8

[Land]
<PAGE>

               IN WITNESS WHEREOF, this Ground Lease is hereby executed in
multiple originals as of the date first written above.

                                        "Lessor"

                                        [Extreme or the Applicable Purchaser]

                                        By: ____________________________________
                                               Name: ___________________________
                                               Title: __________________________

                             Exhibit B-3 - Page 9

[Land]
<PAGE>

[Continuation of signature pages to GROUND LEASE dated as of ___________, ____]

                                        "BNPLC"

                                        BNP LEASING CORPORATION

                                        By: ____________________________________
                                               Name: ___________________________
                                               Title: __________________________

                             Exhibit B-3 - Page 10

[Land]
<PAGE>

STATE OF ___________                )
                                    )
COUNTY OF _____________             )

          On _____________, _____, before me, ________________________,
personally appeared ____________________________, personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person whose name
is subscribed to the within instrument and acknowledged to me that he executed
the same in his authorized capacity, and that by his signature on the instrument
the person, or the entity upon behalf of which the person acted, executed the
instrument.

                                        WITNESS my hand and official seal.

                                        Signature ______________________________

                             Exhibit B-3 - Page 11

[Land]
<PAGE>

STATE OF ________                   )
                                    )
COUNTY OF __________                )

          On ___________, _____, before me, ________________________, personally
appeared ____________, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person whose name is subscribed to the within
instrument and acknowledged to me that he executed the same in his authorized
capacity, and that by his signature on the instrument the person, or the entity
upon behalf of which the person acted, executed the instrument.

                                        WITNESS my hand and official seal.

                                        Signature ______________________________

                             Exhibit B-3 - Page 12

[Land]
<PAGE>

                                    Annex 1
                                    -------

                               Legal Description

[DRAFTING NOTE: TO THE EXTENT THAT THE "LAND" COVERED BY THE LAND LEASE CHANGES
 --------------
FROM TIME TO TIME BECAUSE OF ADJUSTMENTS FOR WHICH EXTREME REQUESTS BNPLC'S
CONSENT OR APPROVAL, SO TOO WILL THE DESCRIPTION OF THE LAND BELOW CHANGE. ANY
SUCH CHANGES WILL BE INCORPORATED INTO THE DESCRIPTION BELOW AND THIS "DRAFTING
NOTE" WILL BE DELETED BEFORE THE DEED TO WHICH THIS DESCRIPTION IS ATTACHED IS
ACTUALLY EXECUTED AND DELIVERED.]

All that certain real property situated in the City of Santa Clara, County of
Santa Clara, State of California, described as follows:

Being a portion of that certain 24.740 acre parcel as shown on that certain
Record of Survey filed in Book 447 of Maps, at Page 33, Santa Clara County
Records, described as follows:

Beginning at the Northwest corner of said 24.740 acre parcel; thence from said
point of beginning along the Northerly line of said 24.470 acre parcel N. 89
degrees 25 minutes 00 seconds E. 995.17 feet; thence leaving said Northerly
lines S. 0 degrees 10 minutes 00 seconds W. 705.02 feet to a point in the
Southerly line of said 24.740 acre parcel; thence along said Southerly line the
following courses: S. 89 degrees 25 minutes 00 seconds W. 181.82 feet; S. 2.00
feet and S. 89 degrees 25 minutes 00 seconds W. 760.70 feet; thence leaving said
Southerly line along a tangent curve to the right, with a radius of 50.00 feet,
through a central angle of 90 degrees 34 minutes 33 seconds for an arc length of
79.4 feet to a point in the Westerly line of said 24.470 acre parcel; thence
along said Westerly line N. 0 degrees 00 minutes 27 seconds W. 656.49 feet to
the point of beginning.

                             Exhibit B-3 - Page 13

[Land]
<PAGE>

                                    Annex 2
                                    -------

                            Permitted Encumbrances

The leasehold and other interests in the Land hereby conveyed by Lessor are
conveyed subject to the following matters to the extent the same are still valid
and in force:

[THE SAME LIST OF PERMITTED ENCUMBRANCES ATTACHED TO THE GRANT DEED FROM BNPLC
TO EXTREME OR THE APPLICABLE PURCHASER SHALL BE INSERTED HERE.]

                             Exhibit B-3 - Page 14

[Land]
<PAGE>

                                    Annex 3
                                    -------

                         List of Development Documents

None.

[Land]

                             Exhibit B-3 - Page 15
<PAGE>

                                    Annex 4
                                    -------

                      DETERMINATION OF FAIR RENTAL VALUE

         Each annual payment of Ground Lease Rent will equal the Fair Rental
Value, computed as of the most recent Rental Determination Date when such
payment becomes due. As used in this Annex:

                  "Fair Rental Value" means (and all appraisers and other
         persons involved in the determination of the Fair Rental Value will be
         so advised) the annual rent, as determined in accordance with this
         Annex, that would be agreed upon between a willing tenant, under no
         compulsion to lease, and a willing landlord, under no compulsion to
         lease, for unimproved land comparable in size and location to the Land,
                    ----------
         exclusive of any Improvements but assuming that there is no higher and
         better use for such land than as a site for improvements of comparable
         size and utility to the Improvements, at the time a determination is
         required under hereunder and taking into consideration the condition of
         the Land, the encumbrances affecting the title to the Land and all
         applicable zoning, land use approvals and other governmental permits
         relating to the Land at the time of such determination; and

                  "Rental Determination Date" means the GL Effective Date and
         each fifth anniversary of the GL Effective Date.

         If Lessor and BNPLC have not agreed upon Fair Rental Value as of any
Rental Determination Date within one hundred eighty days after the such date,
then Fair Rental Value will be determined as follows:

                  (a0 Lessor and BNPLC shall each appoint a real estate
         appraiser who is familiar with rental values for properties in the
         vicinity of the Land and who has not previously acted for either party.
         Each party will make the appointment no later than ten days after
         receipt of notice from the other party that the appraisal process
         described in this Annex has been invoked. The agreement of the two
         appraisers as to Fair Rental Value will be binding upon Lessor and
         BNPLC. If the two appraisers cannot agree upon the Fair Rental Value
         within ten days following their appointment, they shall within another
         ten days agree upon a third real estate appraiser. Immediately
         thereafter, each of the first two appraisers will submit his best
         estimate of the appropriate Fair Rental Value (together with a written
         report supporting such estimate) to the third appraiser and the third
         appraiser will choose between the two estimates. The estimate of Fair
         Rental Value chosen by the third appraiser as the closest to the
         prevailing annual fair rental value will be binding upon Lessor and
         BNPLC. Notification in writing of this estimate shall be made to Lessor
         and BNPLC within fifteen days following the selection of the third
         appraiser.

                  (b0 If appraisers must be selected under the procedure set out
         above and either BNPLC or Lessor fails to appoint an appraiser or fails
         to notify the other party of such appointment within fifteen days after
         receipt of notice that the prescribed time for appointing the
         appraisers has passed, then the other party's appraiser will determine
         the Fair Rental Value. All appraisers selected for the appraisal
         process set out in this Annex will be disinterested, reputable,
         qualified real estate appraisers with the designation of MAI or
         equivalent and with at least 5 years experience in appraising
         properties comparable to the Land.

                  (c0 If a third appraiser must be chosen under the procedure
         set out above, he or she will be chosen on the basis of objectivity and
         competence, not on the basis of his relationship with the other
         appraisers or the parties to this Ground Lease, and the first two
         appraisers will be so advised. Although the first two appraisers will
         be instructed to attempt in good faith to agree upon the third
         appraiser, if for any reason they cannot agree within the prescribed
         time, either Lessor and BNPLC may require the first two appraisers to
         immediately submit its top choice for the third appraiser to the then
         highest ranking officer of the California Bar Association who will
         agree to help and who has no attorney/client or other significant

[Land]

                             Exhibit B-3 - Page 16
<PAGE>

         relationship to either Lessor or BNPLC. Such officer will have complete
         discretion to select the most objective and competent third appraiser
         from between the choices of each of the first two appraisers, and will
         do so within twenty days after such choices are submitted to him.

                  (d0 Either Lessor or BNPLC may notify the appraiser selected
         by the other party to demand the submission of an estimate of Fair
         Rental Value or a choice of a third appraiser as required under the
         procedure described above; and if the submission of such an estimate or
         choice is required but the other party's appraiser fails to comply with
         the demand within fifteen days after receipt of such notice, then the
         Fair Rental Value or choice of the third appraiser, as the case may be,
         selected by the other appraiser (i.e., the notifying party's appraiser)
         will be binding upon Lessor and BNPLC.

                  (e0 Lessor and BNPLC shall each bear the expense of the
         appraiser appointed by it, and the expense of the third appraiser and
         of any officer of the California Bar Association who participates in
         the appraisal process described above will be shared equally by Lessor
         and BNPLC.

[Land]

                             Exhibit B-3 - Page 17
<PAGE>

                                    Annex 5
                                    -------

                               REPURCHASE OPTION

         Subject to the terms of this Annex, BNPLC shall have an option (the
"Option") to buy Lessor's fee interest in the GL Property at any time during the
term of this Ground Lease for a purchase price (the "Option Price") to Lessor
equal to the fair market value of the GL Property, determined as described in
the next paragraph.

         For the purposes of this Annex, "fair market value" of the GL Property
means (and all appraisers and other persons involved in the determination of the
Option Price will be so advised) the price that would be agreed upon between a
willing buyer, under no compulsion to buy, and a willing seller, under no
compulsion to sell, for the Land, exclusive of any Improvements as if the Land
were unimproved, but assuming that there is no higher and better use for the
     ----------
Land than as a site for the construction of improvements of comparable size and
utility to the Improvements, at the time of BNPLC's exercise of the Option and
taking into consideration the encumbrances affecting the title to the Land and
all applicable zoning, land use approvals and other governmental permits
relating to the Land at the time of the exercise of the Option.

         If BNPLC exercises the Option, which BNPLC may do by notifying Lessor
that BNPLC has elected to buy Lessor's interest in the GL Property as provided
herein, then:

                  (a0 To the extent, if any, required as a condition imposed by
         law to the conveyance of the fee interest in the GL Property to BNPLC,
         Lessor shall promptly at its expense do whatever is necessary to obtain
         approvals of a new Parcel Map or lot line adjustments.

                  (b0 Upon BNPLC's tender of the Option Price to Lessor, Lessor
         will convey to BNPLC by general warranty deed and assignment, subject
         only to the Permitted Encumbrances, good and marketable title to the
         fee estate in the Land , to Lessor's interest in all other GL Property
         and, to the extent still in force, to Lessor's Extended Remarketing
         Rights under the Purchase Agreement.

                  (c0 BNPLC's obligation to close the purchase shall be subject
         to the following terms and conditions, all of which are for the benefit
         of BNPLC: (1) BNPLC shall have been furnished with evidence
         satisfactory to BNPLC that Lessor can convey title as required by the
         preceding subparagraph; (2) nothing shall have occurred or been
         discovered after BNPLC exercised the Option that could significantly
         and adversely affect title to the GL Property or BNPLC's use thereof,
         (3) all of the representations of Lessor in this Ground Lease shall
         continue to be true as if made effective on the date of the closing
         and, with respect to any such representations which may be limited to
         the knowledge of Lessor or any of Lessor's representatives, would
         continue to be true on the date of the closing if all relevant facts
         and circumstances were known to Lessor and such representatives, (4)
         BNPLC shall find the Option Price acceptable after it is determined as
         provided in this Annex, and (5) BNPLC shall have been tendered the deed
         and other documents which are described in this Annex as documents to
         be delivered to BNPLC at the closing of BNPLC's purchase.

                  (d0 Closing of the purchase will be scheduled on the first
         Business Day following thirty days after the Option Price is
         established in accordance with the terms and conditions of this Annex
         and after any approvals described in subparagraph (a) above are
         obtained, and prior to closing BNPLC's occupancy of the GL Property
         shall continue to be subject to the terms and conditions of this Ground
         Lease, including the terms setting forth BNPLC's obligation to pay
         rent. Closing shall take place at the offices of any title insurance
         company reasonably selected by BNPLC to insure title under the title
         insurance policy described below.

[Land]

                             Exhibit B-3 - Page 18
<PAGE>

                  (e0 Any transfer taxes or notices or registrations required by
         law in connection with the sale contemplated by this Annex will be the
         responsibility of Lessor.

                  (f0 Lessor will deliver a certificate of nonforeign status to
         BNPLC at closing as needed to comply with the provisions of the Foreign
         Investors Real Property Tax Act (FIRPTA) or any comparable federal,
         state or local law in effect at the time.

                  (g0 Lessor will also pay for and deliver to BNPLC at the
         closing an owner's title insurance policy in the full amount of the
         Option Price, issued by a title insurance company designated by BNPLC
         (or written confirmation from the title company that it is then
         prepared to issue such a policy), and subject only to standard printed
         exceptions which the title insurance company refuses to delete or
         modify in a manner acceptable to BNPLC and to Permitted Encumbrances.

                  (h0 Lessor shall also deliver at the closing all other
         documents or things reasonably required to be delivered to BNPLC or by
         the title insurance company to evidence Lessor's ability to transfer
         the GL Property to BNPLC.

         If Lessor and BNPLC do not otherwise agree upon the amount of the
Option Price within twenty days after BNPLC exercises the Option, the Option
Price shall be determined in accordance with the following procedure:

                      (1 Lessor and BNPLC shall each appoint a real estate
                  appraiser who is familiar with properties in the vicinity of
                  the Land and who has not previously acted for either party.
                  Each party will make the appointment no later than ten days
                  after receipt of notice from the other party that the
                  appraisal process described in this Annex has been invoked.
                  The agreement of the two appraisers as to the Option Price
                  will be binding upon Lessor and BNPLC. If the two appraisers
                  cannot agree upon the Option Price within ten days following
                  their appointment, they shall within another ten days agree
                  upon a third real estate appraiser. Immediately thereafter,
                  each of the first two appraisers will submit his best estimate
                  of the appropriate Option Price (together with a written
                  report supporting such estimate) to the third appraiser and
                  the third appraiser will choose between the two estimates. The
                  estimate of Option Price chosen by the third appraiser as the
                  closest to the prevailing fair market value will be binding
                  upon Lessor and BNPLC. Notification in writing of the Option
                  Price shall be made to Lessor and BNPLC within fifteen days
                  following the selection of the third appraiser.

                           (2 If appraisers must be selected under the procedure
                  set out above and either BNPLC or Lessor fails to appoint an
                  appraiser or fails to notify the other party of such
                  appointment within fifteen days after receipt of notice that
                  the prescribed time for appointing the appraisers has passed,
                  then the other party's appraiser will determine the Option
                  Price. All appraisers selected for the appraisal process set
                  out in this Annex will be disinterested, reputable, qualified
                  real estate appraisers with the designation of MAI or
                  equivalent and with at least 5 years experience in appraising
                  properties comparable to the Land.

                           (3 If a third appraiser must be chosen under the
                  procedure set out above, he will be chosen on the basis of
                  objectivity and competence, not on the basis of his
                  relationship with the other appraisers or the parties to this
                  Ground Lease, and the first two appraisers will be so advised.
                  Although the first two appraisers will be instructed to
                  attempt in good faith to agree upon the third appraiser, if
                  for any reason they cannot agree within the prescribed time,
                  either Lessor and BNPLC may require the first two appraisers
                  to immediately submit its top choice for the third appraiser
                  to the then highest ranking officer of the California Bar
                  Association who will agree to help and who has no
                  attorney/client or other significant relationship to either
                  Lessor or BNPLC. Such officer

[Land]

                             Exhibit B-3 - Page 19
<PAGE>

                  will have complete discretion to select the most objective and
                  competent third appraiser from between the choices of each of
                  the first two appraisers, and will do so within ten days after
                  such choices are submitted to him.

                           (4 Either Lessor or BNPLC may notify the appraiser
                  selected by the other party to demand the submission of an
                  estimate of Option Price or a choice of a third appraiser as
                  required under the procedure described above; and if the
                  submission of such an estimate or choice is required but the
                  other party's appraiser fails to comply with the demand within
                  fifteen days after receipt of such notice, then the Option
                  Price or choice of the third appraiser, as the case may be,
                  selected by the other appraiser (i.e., the notifying party's
                  appraiser) will be binding upon Lessor and BNPLC.

                           (5 Lessor and BNPLC shall each bear the expense of
                  the appraiser appointed by it, and the expense of the third
                  appraiser and of any officer of the California Bar Association
                  who participates in the appraisal process described above will
                  be shared equally by Lessor and BNPLC.

[Land]

                             Exhibit B-3 - Page 20
<PAGE>

                                  Exhibit B-4
                                  -----------

                            CORPORATION GRANT DEED

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
-------------------------

NAME:    [Extreme or the Applicable Purchaser]
ADDRESS: ___________________
ATTN:    ___________________
CITY:    ___________________
STATE:   ___________________
Zip:     ___________________

MAIL TAX STATEMENTS TO:
----------------------

NAME:    [Extreme or the Applicable Purchaser]
ADDRESS: ___________________
ATTN:    ___________________
CITY:    ___________________
STATE:   ___________________
Zip:     ___________________

                            CORPORATION GRANT DEED
             (Covering Land but not the Improvements On the Land)

FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, BNP
LEASING CORPORATION, a Delaware corporation ("Grantor"), hereby grants to
[Extreme or the Applicable Purchaser] ("Grantee") all of Grantor's interest in
the land situated in Santa Clara, California, described on Annex A attached
hereto and hereby made a part hereof (the "Land"), together with the any other
right, title and interest of Grantor in and to any easements, rights-of-way,
privileges and other rights appurtenant to the Land; provided, however, that
this grant is subject to the encumbrances described on Annex B (the "Permitted
Encumbrances") and any reservations or qualifications set forth below. Grantee
hereby assumes the obligations (including any personal obligations) of Grantor,
if any, created by or under, and agrees to be bound by the terms and conditions
of, the Permitted Encumbrances to the extent that the same concern or apply to
the Land.

Although this deed conveys Grantor's interest in the Land itself, this deed does
not convey any interest in any buildings or other improvements on the Land
(collectively, "Improvements") or any rights or easements appurtenant to
Improvements. Prior to or contemporaneously with the delivery of this deed,
Grantor has conveyed or is conveying the Improvements and appurtenant rights and
easements to another party.

[Land]
<PAGE>

                                               BNP LEASING CORPORATION

Date: As of ____________                       By:     ________________________
                                                       Its:

                                               Attest: ________________________
                                                       Its:

                                               [Extreme or Applicable Purchaser]

Date: As of ____________                       By:     _________________________
                                                       Its:

                                               Attest: ________________________
                                                       Its:

STATE OF ____________      )
                           )       SS
COUNTY OF ___________      )

         On ___________________ before me, ______________, personally appeared
________ and _________, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the persons whose names are subscribed to the
within instrument and acknowledged to me that they executed the same in their
authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

         WITNESS my hand and official seal.

         Signature____________________

[Land]

                             Exhibit B-4 - Page 2
<PAGE>

STATE OF ____________      )
                           )       SS
COUNTY OF ___________      )

         On ___________________ before me, _______________, personally appeared
__________ and __________, personally known to me (or proved to me on the basis
of satisfactory evidence) to be the persons whose names are subscribed to the
within instrument and acknowledged to me that they executed the same in their
authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

         WITNESS my hand and official seal.

         Signature_____________________

[Land]

                             Exhibit B-4 - Page 3
<PAGE>

                                    Annex A

                               LEGAL DESCRIPTION

[DRAFTING NOTE: TO THE EXTENT THAT THE "LAND" COVERED BY THE LAND LEASE CHANGES
 -------------
FROM TIME TO TIME BECAUSE OF ADJUSTMENTS FOR WHICH EXTREME REQUESTS BNPLC'S
CONSENT OR APPROVAL, SO TOO WILL THE DESCRIPTION OF THE LAND BELOW CHANGE. ANY
SUCH CHANGES WILL BE INCORPORATED INTO THE DESCRIPTION BELOW AND THIS "DRAFTING
NOTE" WILL BE DELETED BEFORE THE DEED TO WHICH THIS DESCRIPTION IS ATTACHED IS
ACTUALLY EXECUTED AND DELIVERED.]

All that certain real property situated in the City of Santa Clara, County of
Santa Clara, State of California, described as follows:

Being a portion of that certain 24.740 acre parcel as shown on that certain
Record of Survey filed in Book 447 of Maps, at Page 33, Santa Clara County
Records, described as follows:

Beginning at the Northwest corner of said 24.740 acre parcel; thence from said
point of beginning along the Northerly line of said 24.470 acre parcel N. 89
degrees 25 minutes 00 seconds E. 995.17 feet; thence leaving said Northerly
lines S. 0 degrees 10 minutes 00 seconds W. 705.02 feet to a point in the
Southerly line of said 24.740 acre parcel; thence along said Southerly line the
following courses: S. 89 degrees 25 minutes 00 seconds W. 181.82 feet; S. 2.00
feet and S. 89 degrees 25 minutes 00 seconds W. 760.70 feet; thence leaving said
Southerly line along a tangent curve to the right, with a radius of 50.00 feet,
through a central angle of 90 degrees 34 minutes 33 seconds for an arc length of
79.4 feet to a point in the Westerly line of said 24.470 acre parcel; thence
along said Westerly line N. 0 degrees 00 minutes 27 seconds W. 656.49 feet to
the point of beginning.

[Land]

                             Exhibit B-4 - Page 4
<PAGE>

                                    Annex B

                            Permitted Encumbrances

[DRAFTING NOTE: TO THE EXTENT THAT ENCUMBRANCES (OTHER THAN "LIENS REMOVABLE BY
 -------------
BNPLC") ARE IDENTIFIED IN ADDITION TO THOSE DESCRIBED BELOW, SUCH ADDITIONAL
ENCUMBRANCES WILL BE ADDED TO THE LIST BELOW AND THIS "DRAFTING NOTE" WILL BE
DELETED BEFORE THIS DEED IS ACTUALLY EXECUTED AND DELIVERED BY BNPLC. SUCH
ADDITIONAL ENCUMBRANCES WOULD INCLUDE ANY NEW ENCUMBRANCES APPROVED BY BNPLC AS
"PERMITTED ENCUMBRANCES" UNDER THE LAND LEASE OR THE OTHER LEASE AGREEMENT FROM
TIME TO TIME OR BECAUSE OF EXTREME'S REQUEST FOR BNPLC'S CONSENT OR APPROVAL TO
AN ADJUSTMENT.]

         This conveyance is subject to all encumbrances not constituting a "Lien
Removable by BNPLC" (as defined in the Common Definitions and Provisions
Agreement (Land) incorporated by reference into the Lease Agreement (Land)
referenced in the last item of the list below), including the following matters
to the extent the same are still valid and in force:

1.       TAXES for the fiscal year 2000-2001, a lien not yet due or payable.

2.       The lien of supplemental taxes, if any, assessed pursuant to the
         provisions of Chapter 3.5, (commencing with Section 75) to the Revenue
         and Taxation Code of the State of California.

3.       An easement affecting the portion of said land and for the purpose
         stated herein and incidental purposes,
         In Favor Of:   City of Santa Clara
         For:     electric wire overhang purposes
         Recorded: November 28, 1960 in Book 4995, Page 160, Official Records
         Affects: Northerly 5 feet of said land, and as shown on the survey
                  prepared by Anthony C. McCants, L.S. 5944, dated
                  April 27, 2000, revised May 22, 2000

4.       The fact that the ownership of said land does not include any right of
         ingress or egress to or from Lawrence Expressway contiguous thereto,
         said right having been relinquished by deed,
         From: Jefferson Union Elementary School District of the County of Santa
               Clara
         To:   County of Santa Clara, State of California
         Recorded:         June 4, 1965 in Book 6982, Page 1, Official Records

         Said land, however, abuts on a public street other than the one
         referred to above, over which rights of vehicular access have not been
         relinquished.

5.       An Agreement, affecting said land, for the purposes stated herein and
         subject to the terms, covenants, conditions, restrictions, and
         easements, if any, contained therein
         For:     Postponed Traffic Signal Improvements
         Dated:   October 4, 1983
         Executed by: City of Santa Clara, California, a municipal corporation
         and MPJ, a California partnership Recorded: November 16, 1983 in Book I
         070, Page 333, Official Records.

6.       An easement affecting the portion of said land and for the purpose
         stated herein and incidental purposes,
         In Favor Of:   City of Santa Clara, a municipal corporation
         For:  roadway purposes and public utilities
         Recorded:   November 30, 1983 in Book I 111, Page 606, Official Records
         Affects: A portion of that certain 24.740 acre parcel of land as shown
         on that certain Record of Survey filed for record in Book 447 of Maps,
         at page 33, Santa Clara County Records, described as

[Land]

                             Exhibit B-4 - Page 5
<PAGE>

                              follows:

         Beginning at a point in the Northerly line of Monroe Avenue, as shown
         on said map at the Westerly terminus of the course shown as N. 89
         degrees 25 minutes 00 seconds E. 760.70; thence from said point of
         beginning along said Northerly line N. 89 degrees 25 minutes 00 seconds
         E. 760.70 feet and N. 2.00 feet; thence leaving said Northerly line
         along a line parallel with said course of N. 89 degrees 25 minutes 00
         seconds E.; S. 89 degrees 25 minutes 00 seconds W. 334.99 feet; thence
         leaving said parallel line N. 87 degrees 09 minutes 00 seconds W. 66.79
         feet; thence along a line parallel with said course N. 89 degrees 25
         minutes 00 seconds E.; S. 89 degrees 25 minutes 00 seconds W. 359.00
         feet; thence leaving said Westerly line along a tangent curve to the
         right, with a radius of 50.00 feet, through a central angle of 90
         degrees 34 minutes 33 seconds for an arc length of 79.04 feet to a
         point of cusp in the Westerly line of said 24.740 acre parcel; thence
         along said Westerly line S. 0 degrees 00 minutes 27 seconds E. 6.00
         feet; thence leaving said Westerly line along a tangent curve to the
         left, with a radius of 50.00 feet, through a central angle of 90
         degrees 34 minutes 33 seconds for an arc length of 79.04 feet to the
         point of beginning, and as shown on the survey prepared by Anthony C.
         McCants, L.S. 5944, dated April 27, 2000, revised May 22, 2000.

7.       An easement affecting the portion of said land and for the purpose
         stated herein and incidental purposes,
         In Favor Of:    City of Santa Clara, a municipal corporation
         For:  underground electrical distribution and/or communication systems
         Recorded:    May 17, 1984 in Book I 552, Page 595, Official Records
         Affects. as follows:

         Parcel 1:

         Commencing at the point of intersection of the Westerly line of that
         certain 24.74 acre parcel of land shown upon that Record of Survey
         filed for recorded August 10, 1979 in Book 447 of Maps, at page 33,
         Santa Clara County Records, with a line parallel with and 10 feet
         Southerly of, measured at right angles to, the Northerly line of said
         parcel; thence along said parallel line N. 89 degrees 25 minutes 00
         seconds E. 107.00 feet; thence parallel with said Westerly line S. 0
         degrees 00 minutes 27 seconds E. 319.16 feet; thence S. 34 degrees 02
         minutes 45 seconds W. 87.51 feet, more or less, to intersection with a
         line parallel with and 58 feet Easterly of measured at right angles to,
         said Westerly line; thence along last said parallel line S. 0 degrees
         00 minutes 27 seconds E. 294.30 feet, more or less, to intersection
         with a line parallel with and 5 feet Northerly of, measured at right
         angles to, the Northerly line of that real property conveyed to the
         City of Santa Clara by that deed filed for record November 30, 1983 in
         Book I 111 of Official Records, at page 606, said County Records;
         thence along last said parallel line the following three (3) courses:
         N. 89 degrees 25 minutes 00 seconds E. 351.81 feet; S. 87 degrees 09
         minutes 00 seconds E. 66.79 feet; N. 89 degrees 25 minutes 00 seconds
         E. 334.69 feet; thence continuing parallel with the Southerly line of
         first said parcel N. 89 degrees 25 minutes 00 seconds E. 181.89 feet,
         more or less, to termination in the Easterly line of that certain
         parcel of real property conveyed to MPJ Partnership, by that Grant Deed
         filed for record August 25, 1983 in Book H 838 of Official Records, at
         page 215, said County Records.

         Parcel 2:

         A portion of said 24.74 acre parcel of land contiguous to and Northerly
         of said real property conveyed by deed recorded in Book I 111, at page
         606, contiguous to and Westerly of hereinabove described strip of land
         and bounded on the North by a line parallel with and 5 feet Northerly
         of, measured at right angles to, that course N. 89 degrees 25 minutes
         00 seconds E. 351.81 feet in the hereinabove described centerline.

         Parcel 3:

[Land]
                             Exhibit B-4 - Page 6
<PAGE>

         A strip of land 10 feet in width and 30 feet in length of centerline of
         said strip being parallel with and 325.5 feet Southerly of, measured at
         right angles to, said Northerly line of the 24.74 acre parcel and
         terminating on the West in the Easterly line of first hereinabove
         described strip; thence continuing Easterly along last said parallel
         line for a distance of 15 feet, as the centerline of a strip of land 15
         feet in width, to termination of said centerline and strip.

         Parcel 4:

         A strip of land 10 feet in width and 12 feet in length the centerline
         of said strip being parallel with and 116.5 feet Southerly of, measured
         at right angles to, said Northerly line of the 24.74 acre parcel and
         terminating on the West in the Easterly line of first hereinabove
         described strip; thence continuing Easterly along last said parallel
         line for a distance of 15 feet in width, lying 5 feet Northerly and 10
         feet Southerly of said parallel line to the Easterly terminus of said
         strip.

         Parcel 5:

         A strip of land 10 feet in width, the centerline of said strip being
         described as follows:

         Commencing at the point of intersection of the Northerly line of first
         hereinabove described strip of land with a line parallel with and 824.5
         feet Easterly of, measured at right angles to, that course in the
         Westerly boundary of said 24.75 acre parcel bearing N. 0 degrees 00
         minutes 27 seconds W.; thence along last said parallel line N. 0
         degrees 00 minutes 27 seconds W. 367.96 feet, more or less, to a line
         parallel with and 327 feet Southerly of, measured at right angles to,
         said Northerly line of the 24.74 acre parcel; thence along last said
         parallel line S. 89 degrees 25 minutes 00 seconds W. 78 feet to a line
         parallel with and 746.5 feet Easterly of, measured at right angles to,
         said Westerly line of the 24.74 acre parcel; thence along last said
         parallel line N. 0 degrees 00 minutes 27 seconds W. 203 feet; thence
         continuing as the centerline of a strip of land 15 feet in width N. 0
         degrees 00 minutes 27 seconds W. 15 feet, more or less, to termination
         of said strip and centerline in a line parallel with and 109 feet
         Southerly of, measured at right angles to, last said Northerly line.

         Parcel 6:

         A 15 foot square parcel of land contiguous to and Southerly of last
         hereinabove described 10 foot wide strip of land and centered on the
         Southerly prolongation of hereinabove mentioned course N. 0 degrees 00
         minutes 27 seconds W. 203 feet, and as shown on the survey prepared by
         Anthony C. McCants, L.S. 5944, dated April 27, 2000, revised May 22,
         2000.

8.       Lease Agreement (Land) dated as of June 1, 2000, by and between BNP
         Leasing Corporation, as lessor, and Extreme Networks, Inc., as lessee,
         and Lease Agreement (Improvements) dated as of June 1, 2000, by and
         between BNP Leasing Corporation, as lessor, and Extreme Networks, Inc.,
         as lessee.

[Land]
                             Exhibit B-4 - Page 7
<PAGE>

                                   Exhibit C
                                   ---------

                          BILL OF SALE AND ASSIGNMENT

         Reference is made to: (1) that certain Purchase Agreement (Land)
between BNP Leasing Corporation ("Assignor") and Extreme Networks, Inc., dated
as of June 1, 2000, (the "Purchase Agreement") and (2) that certain Lease
Agreement (Land) between Assignor, as landlord, and Extreme Networks, Inc., as
tenant, dated as of June __, 2000 (the "Land Lease"). (Capitalized terms used
and not otherwise defined in this document are intended to have the meanings
assigned to them in the Common Definitions and Provisions Agreement (Land)
incorporated by reference into both the Purchase Agreement and Land Lease.)

         As contemplated by the Purchase Agreement, Assignor hereby sells,
transfers and assigns unto [EXTREME OR THE APPLICABLE PURCHASER, AS THE CASE MAY
BE], a _____________ ("Assignee"), all of Assignor's right, title and interest
in and to the following property, if any, to the extent such property is
assignable:

         (a)   the Land Lease;

         (b)   any pending or future award made because of any condemnation
affecting the Property or because of any conveyance to be made in lieu thereof,
and any unpaid award for damage to the Property and any unpaid proceeds of
insurance or claim or cause of action for damage, loss or injury to the
Property; and

         (c)   all other property included within the definition of "Property"
as set forth in the Purchase Agreement.

Provided, however, excluded from this conveyance and reserved to Assignor are
any rights or privileges of Assignor under the following ("Excluded Rights"):
(1) the indemnities set forth in the Land Lease, whether such rights are
presently known or unknown, including rights of the Assignor to be indemnified
against environmental claims of third parties as provided in the Land Lease
which may not presently be known, (2) provisions in the Land Lease that
establish the right of Assignor to recover any accrued unpaid rent under the
Land Lease which may be outstanding as of the date hereof, (3) agreements
between Assignor and "BNPLC's Parent" or any "Participant," both as defined in
the Land Lease, or any modification or extension thereof, or (4) any other
instrument being delivered to Assignor contemporaneously herewith pursuant to
the Purchase Agreement. To the extent that this conveyance does include any
rights to receive future payments under the Land Lease, such rights ("Included
Rights") shall be subordinate to Assignor's Excluded Rights, and Assignee hereby
waives any rights to enforce Included Rights until such time as Assignor has
received all payments to which it remains entitled by reason of Excluded Rights.
If any amount shall be paid to Assignee on account of any Included Rights at any
time before Assignor has received all payments to which it is entitled because
of Excluded Rights, such amount shall be held in trust by Assignee for the
benefit of Assignor, shall be segregated from the other funds of Assignee and
shall forthwith be paid over to Assignor to be held by Assignor as collateral
for, or then or at any time thereafter applied in whole or in part by Assignor
against, the payments due to Assignor because of Excluded Rights, whether
matured or unmatured, in such order as Assignor shall elect.

         Assignor does for itself and its successors covenant and agree to
warrant and defend the title to the property assigned herein against the just
and lawful claims and demands of any person claiming under or through a Lien
Removable by BNPLC, but not otherwise.

         Assignee hereby assumes and agrees to keep, perform and fulfill
Assignor's obligations, if any, relating to any permits or contracts, under
which Assignor has rights being assigned herein.

[Land]
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this instrument as of
_______________, _____.

                                        ASSIGNOR:
                                        --------

                                        BNP LEASING CORPORATION a Delaware
                                        corporation

                                        By:__________________________________
                                        Its:_________________________________

                                        ASSIGNEE:
                                        --------

                                        [Extreme or the Applicable Purchaser], a
                                        ____________________

                                        By:__________________________________
                                        Its:_________________________________

[Land]
                              Exhibit C - Page 2
<PAGE>

STATE OF ____________          )
                               )    SS
COUNTY OF ___________   )

         On ___________________ before me, _______, personally appeared ______
and _______, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the persons whose names are subscribed to the
within instrument and acknowledged to me that they executed the same in their
authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

         WITNESS my hand and official seal.

         Signature _________________________

STATE OF ____________          )
                               )    SS
COUNTY OF ___________   )

         On ___________________ before me, _______, personally appeared ______
and _______, personally known to me (or proved to me on the basis of
satisfactory evidence) to be the persons whose names are subscribed to the
within instrument and acknowledged to me that they executed the same in their
authorized capacities, and that by their signatures on the instrument the
person, or the entity upon behalf of which the persons acted, executed the
instrument.

         WITNESS my hand and official seal.

         Signature _________________________

[Land]
                              Exhibit C - Page 3
<PAGE>

                                    Annex A

                               LEGAL DESCRIPTION

[DRAFTING NOTE: TO THE EXTENT THAT THE "LAND" COVERED BY THE LAND LEASE CHANGES
 --------------
FROM TIME TO TIME BECAUSE OF ADJUSTMENTS FOR WHICH EXTREME REQUESTS BNPLC'S
CONSENT OR APPROVAL, SO TOO WILL THE DESCRIPTION OF THE LAND BELOW CHANGE. ANY
SUCH CHANGES WILL BE INCORPORATED INTO THE DESCRIPTION BELOW AND THIS "DRAFTING
NOTE" WILL BE DELETED BEFORE THE DOCUMENT TO WHICH THIS DESCRIPTION IS ATTACHED
IS ACTUALLY EXECUTED AND DELIVERED.]

All that certain real property situated in the City of Santa Clara, County of
Santa Clara, State of California, described as follows:

Being a portion of that certain 24.740 acre parcel as shown on that certain
Record of Survey filed in Book 447 of Maps, at Page 33, Santa Clara County
Records, described as follows:

Beginning at the Northwest corner of said 24.740 acre parcel; thence from said
point of beginning along the Northerly line of said 24.470 acre parcel N. 89
degrees 25 minutes 00 seconds E. 995.17 feet; thence leaving said Northerly
lines S. 0 degrees 10 minutes 00 seconds W. 705.02 feet to a point in the
Southerly line of said 24.740 acre parcel; thence along said Southerly line the
following courses: S. 89 degrees 25 minutes 00 seconds W. 181.82 feet; S. 2.00
feet and S. 89 degrees 25 minutes 00 seconds W. 760.70 feet; thence leaving said
Southerly line along a tangent curve to the right, with a radius of 50.00 feet,
through a central angle of 90 degrees 34 minutes 33 seconds for an arc length of
79.4 feet to a point in the Westerly line of said 24.470 acre parcel; thence
along said Westerly line N. 0 degrees 00 minutes 27 seconds W. 656.49 feet to
the point of beginning.

[Land]
                              Exhibit C - Page 4
<PAGE>

                                   Exhibit D
                                   ---------

        ACKNOWLEDGMENT OF DISCLAIMER OF REPRESENTATIONS AND WARRANTIES

         THIS ACKNOWLEDGMENT OF DISCLAIMER OF REPRESENTATIONS AND WARRANTIES
(this "Certificate") is made as of ___________________, ____, by [Extreme or the
Applicable Purchaser, as the case may be], a ___________________ ("Grantee").

         Contemporaneously with the execution of this Certificate, BNP Leasing
Corporation, a Delaware corporation ("BNPLC"), is executing and delivering to
Grantee (1) a corporate grant deed and (2) a Bill of Sale and Assignment (the
foregoing documents and any other documents to be executed in connection
therewith are herein called the "Conveyancing Documents" and any of the
properties, rights or other matters assigned, transferred or conveyed pursuant
thereto are herein collectively called the "Subject Property").

         Notwithstanding any provision contained in the Conveyancing Documents
to the contrary, Grantee acknowledges that BNPLC makes no representations or
warranties of any nature or kind, whether statutory, express or implied, with
respect to environmental matters or the physical condition of the Subject
Property, and Grantee, by acceptance of the Conveyancing Documents, accepts the
Subject Property "AS IS," "WHERE IS," "WITH ALL FAULTS" and without any such
                  -----    --------    ---------------
representation or warranty by Grantor as to environmental matters, the physical
condition of the Subject Property, compliance with subdivision or platting
requirements or construction of any improvements. Without limiting the
generality of the foregoing, Grantee hereby further acknowledges and agrees that
warranties of merchantability and fitness for a particular purpose are excluded
from the transaction contemplated by the Conveyancing Documents, as are any
warranties arising from a course of dealing or usage of trade. Grantee hereby
assumes all risk and liability (and agrees that BNPLC shall not be liable for
any special, direct, indirect, consequential, or other damages) resulting or
arising from or relating to the ownership, use, condition, location,
maintenance, repair, or operation of the Subject Property, except for damages
proximately caused by (and attributed by any applicable principles of
comparative fault to) the Established Misconduct of BNPLC. As used in the
preceding sentence, "Established Misconduct" is intended to have, and be limited
to, the meaning given to it in the Common Definitions and Provisions Agreement
(Land) incorporated by reference into the Purchase Agreement between BNPLC and
Extreme Networks, Inc. dated as of June 1, 2000, pursuant to which Purchase
Agreement BNPLC is delivering the Conveyancing Documents.

         The provisions of this Certificate shall be binding on Grantee, its
successors and assigns and any other party claiming through Grantee. Grantee
hereby acknowledges that BNPLC is entitled to rely and is relying on this
Certificate.

         EXECUTED as of ________________, ____.

                                        [Extreme or the Applicable Purchaser]
                                        By:_____________________________________
                                           Name:________________________________
                                           Title:_______________________________

[Land]
<PAGE>

                                   Exhibit E
                                   ---------

                            SECRETARY'S CERTIFICATE

         The undersigned, [Secretary or Assistant Secretary] of BNP Leasing
Corporation, a Delaware corporation (the "Corporation"), hereby certifies as
follows:

         1.    That he is the duly, elected, qualified and acting Secretary [or
Assistant Secretary] of the Corporation and has custody of the corporate
records, minutes and corporate seal.

         2.    That the following named persons have been properly designated,
elected and assigned to the office in the Corporation as indicated below; that
such persons hold such office at this time and that the specimen signature
appearing beside the name of such officer is his or her true and correct
signature.

[The following blanks must be completed with the names and signatures of the
officers who will be signing the deed and other Sale Closing Documents on behalf
of the Corporation.]

Name                      Title                        Signature
----                      -----                        ---------

_______________           _________________            _________________________

_______________           _________________            _________________________

         3. That the resolutions attached hereto and made a part hereof were
duly adopted by the Board of Directors of the Corporation in accordance with the
Corporation's Articles of Incorporation and Bylaws. Such resolutions have not
been amended, modified or rescinded and remain in full force and effect.

         IN WITNESS WHEREOF, I have hereunto signed my name and affixed the seal
of the Corporation on this __, day of ___, __.

                             _________________________________
                             [signature and title]

[Land]
<PAGE>

                           CORPORATE RESOLUTIONS OF
                            BNP LEASING CORPORATION

         WHEREAS, pursuant to that certain Purchase Agreement (Land) (herein
called the "Purchase Agreement") dated as of June 1, 2000, by and between BNP
Leasing Corporation (the "Corporation") and [Extreme or the Applicable Purchaser
as the case may be] ("Purchaser"), the Corporation agreed to sell and Purchaser
agreed to purchase or cause the Applicable Purchaser (as defined in the Purchase
Agreement) to purchase the Corporation's interest in the property (the
"Property") located in Santa Clara, California more particularly described
therein.

         NOW THEREFORE, BE IT RESOLVED, that the Board of Directors of the
Corporation, in its best business judgment, deems it in the best interest of the
Corporation and its shareholders that the Corporation convey the Property to
Purchaser or the Applicable Purchaser pursuant to and in accordance with the
terms of the Purchase Agreement.

         RESOLVED FURTHER, that the proper officers of the Corporation, and each
of them, are hereby authorized and directed in the name and on behalf of the
Corporation to cause the Corporation to fulfill its obligations under the
Purchase Agreement.

         RESOLVED FURTHER, that the proper officers of the Corporation, and each
of them, are hereby authorized and directed to take or cause to be taken any and
all actions and to prepare or cause to be prepared and to execute and deliver
any and all deeds and other documents, instruments and agreements that shall be
necessary, advisable or appropriate, in such officer's sole and absolute
discretion, to carry out the intent and to accomplish the purposes of the
foregoing resolutions.

[Land]
                              Exhibit E - Page 2
<PAGE>

                                   Exhibit F
                                   ---------

                               FIRPTA STATEMENT

         Section 1445 of the Internal Revenue Code of 1986, as amended, provides
that a transferee of a U.S. real property interest must withhold tax if the
transferor is a foreign person. Sections 18805, 18815 and 26131 of the
California Revenue and Taxation Code, as amended, provide that a transferee of a
California real property interest must withhold income tax if the transferor is
a nonresident seller.

         To inform [Extreme or the Applicable Purchaser] (the "Transferee") that
withholding of tax is not required upon the disposition of a California real
property interest by transferor, BNP Leasing Corporation (the "Seller"), the
undersigned hereby certifies the following on behalf of the Seller:

         1. The Seller is not a foreign corporation, foreign partnership,
foreign trust, or foreign estate (as those terms are defined in the Internal
Revenue Code and Income Tax Regulations);

         2. The United States employer identification number for the Seller is
_____________________;

         3.The office address of the Seller is ______________
_________________________ _________________.

         4. The Seller is qualified to do business in California.

         The Seller understands that this certification may be disclosed to the
Internal Revenue Service and/or to the California Franchise Tax Board by the
Transferee and that any false statement contained herein could be punished by
fine, imprisonment, or both.

         The Seller understands that the Transferee is relying on this affidavit
in determining whether withholding is required upon said transfer.

         Under penalties of perjury I declare that I have examined this
certification and to the best of my knowledge and belief it is true, correct and
complete, and I further declare that I have authority to sign this document on
behalf of the Seller.

         Dated: ___________, ____.

                                            By:_________________________
                                             Name:______________________
                                             Title:_____________________

[Land]

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