Document:

exv10w4

 

Exhibit 10.4

Agreement Number:                     

MASTER PURCHASE AND LICENSE AGREEMENT

This Master Purchase and License Agreement (“Agreement”) is made as of March 10, 2005 (the
“Effective Date”), between Veraz Networks, Inc., with headquarters at 926 Rock Avenue, San Jose, CA
95131 (“Veraz”) and the “Customer” listed below.

	 	 	 	 	 	 	 
	Customer:

	 	StarVox Communications, Inc.
	 	Contact:
	 	Douglas S. Zorn
	Address:

	 	2202 No. 1st Street
	 	Phone:
	 	(925) 984-6671
	 

	 	San Jose, CA 95131
	 	Fax:
	 	(800) 270-9380
	 

	 	 	 	E-Mail:
	 	dzorn@starvoxcom.com

This Agreement sets forth the terms and conditions under which the parties agree that Customer may,
pursuant to one or more separately executed Orders, (i) purchase Veraz’s Hardware, (ii) obtain
licenses to use Veraz’s proprietary Software, (iii) purchase and/or license Third Party Products;
and (iv) purchase Services listed on the applicable Order. This Agreement includes the
attached Terms and Conditions and all Schedules attached hereto and any other attachments that
reference this Agreement, and contains, among other things, warranty disclaimers, liability
limitations and use limitations.

By signing below, the parties agree to be bound by the terms and conditions of this Agreement. Any
executed copy of this Agreement made by reliable means (e.g. photocopy or facsimile) is considered
an original.

	 	 	 	 	 	 	 	 	 	 	 
	Customer:	 	 	 	Veraz Networks, Inc.:  
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Douglas S. Zorn
	 	 	 	By:
	 	/s/ Allen Morton	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Douglas S. Zorn
	 	 	 	Name:
	 	Allen Morton	 	 
	Title:

	 	CEO
	 	 	 	Title:
	 	CFO	 	 

TERMS AND CONDITIONS

1. DEFINITIONS

1.1. “Deployment Site(s)” mean the Customer site(s), as described in detail in an Order, to
where the Software and Hardware will be delivered by Veraz and used by Customer.

1.2. “Customer Equipment” means the equipment to be furnished by Customer at Customer’s
expense, and approved by Veraz for use in connection with the Standalone Software.

-1-

 

1.3. “Documentation” means the documentation that Veraz will provide to Customer with the
Software and Hardware.

1.4. “Hardware” means the tangible product, including embedded Software, if any, as
described in an Order.

1.5. “Installation Services” means the services, as further defined and set forth in an
Order, which Customer will purchase hereunder.

1.6. “Intellectual Property Rights” means and ideas, whether or not patentable, inventions,
discoveries, processes, works of authorship, marks, names, know-how, and any and all rights in such
materials on a worldwide basis, including any rights in patents, inventor’s certificates, utility
models, copyrights, trade secrets, mask works, trade names and marks and other analogous rights.

1.7. “Order” means a written purchase order from Customer to Veraz, substantially in the
form attached hereto for the initial Order as Schedule A, for Software, Hardware, and/or
Services to be purchased, licensed or provided under this Agreement.

1.8. “Post-Sales Support Services” means the post-sales support services for the Products,
as further defined and set forth in Schedule B, that Customer will purchase hereunder.

1.9. “Product” means Software and/or Hardware.

1.10. “Services” means the Post-Sales Support Services, Installation Services, training
services, consulting services and other services provided by Veraz under this Agreement.

1.11. “Software” means Veraz’s proprietary software and/or third party proprietary software
licensed to Veraz, embedded in Hardware, or standalone Products (“Standalone Software”), described
in an Order, in object code form and Documentation, if any, including any error corrections and
updates thereto provided by Veraz to Customer under this Agreement.

1.12. “Third Party Products” means hardware or software products from third party vendors
provided by Veraz hereunder (excluding third party technology embedded in the Products) and
separately identified in an Order.

2. PRICES, PAYMENT, ORDER PROCESS

2.1. Prices. Prices for Products and Services are as set forth in an executed Order, which
sets forth Veraz’s pricing and the discounts applicable to that Order.

2.2. Taxes. All stated prices are exclusive of any taxes, fees, and duties or other
amounts, however designated, and including without limitation value added and withholding taxes
that are levied or based upon which charges, or upon this Agreement. Any taxes related to Products
or Services purchased or licensed pursuant to this Agreement including, but not limited to,
withholding taxes, will be paid by Customer or Customer will present an exemption certificate
acceptable to the taxing authorities. Applicable taxes will be billed as a separate item on the
invoice, to the extent possible. Customer will hold Veraz harmless from all claims and liability
arising from the failure to report or pay any taxes, or duties and assessments owed by Customer.

2.3. Order Process. Customer will make the initial purchase of Products by issuing a
written and executed Order to Veraz, indicating specific Products, quantity, price, total purchase
price, shipping instructions,

-2-

 

requested shipment dates, bill-to and ship-to
addresses, and any other special instructions. Subsequent purchases will be made by an Order, with
prices as may be specified for additional Orders in the initial Order or as mutually agreed. The
terms of this Agreement (including an Order) control over additional or different terms of any
Customer purchaser order, confirmation, invoice or similar document, even if accepted in writing by
both parties.

2.4. Payment. Upon and subject to credit approval by Veraz, and unless otherwise set forth
in an Order, all amounts due to Veraz hereunder will be due and payable within thirty (30) days
after the date of Veraz’s invoice to Customer. All payments will be made in U.S. currency. If at
any time Customer is delinquent in the payment of any invoice or is otherwise in breach of this
Agreement, Veraz may, in its discretion, withhold shipment (including partial shipments) of any
Order or performance of any Services or may, at its option, require Customer to prepay for further
shipments of Product or performance of Services. Veraz may charge interest of one percent (1.0%)
per month (or the maximum allowed by law, if less) for any sum not paid by Customer when due.

2.5. Travel and Incidental Expenses. Customer will reimburse Veraz for any reasonable
out-of-pocket expenses incurred by Veraz in connection with performing any pre-approved Services at
Customer’s site.

3. SHIPMENT AND DELIVERY

3.1. Shipping. Shipping dates will be established by Veraz upon receipt of an Order and
will be assigned as close as practicable to Customer’s requested date based on Veraz’s then-current
lead times for the Products. Veraz will notify Customer of the scheduled ship date within ten (10)
days after receipt of an Order. Unless given written instruction by Customer, Veraz will select
the carrier.

3.2. Title and Risk of Loss. Shipping terms are F.O.B. Veraz’s designated shipping
location (or FCA INCOTERMS 2000 for international shipments). Title and risk of loss will pass
from Veraz to Customer upon delivery to the common carrier or Customer’s representative at the
F.O.B. point. Delivery will be deemed made upon transfer of possession to the carrier. Customer
will be responsible for all freight handling and insurance charges. In no event will Veraz have
any liability in connection with shipment, nor will the carrier be deemed to be an agent of Veraz.
Veraz will not be liable for damage or penalty for delay in delivery or for failure to give notice
of any delay. Acceptance will be deemed to be given by Customer upon delivery of the Products
unless expressly set forth to the contrary in an Order.

3.3. Security Interest. If specified in the applicable Order, then Customer will cooperate
fully with Veraz in the filing of a secured transactions document (e.g., UCC 1 in the US) and
execution of Veraz’s standard security agreement for Products purchased pursuant to this Agreement
in the forms attached to a Financing Addendum attached hereto, if applicable. Veraz’s security
interest will remain in effect until Customer has paid in full for the Products and all related
Services.

3.4. Letter of Credit. If specified in the applicable Order, Customer will provide a
letter of credit in accordance with the procedures set forth therein.

3.5. Third Party Products License and Support Terms. Any Third Party Products provided
hereunder will be provided pursuant to such Third Party Products vendor’s license, and support
terms and conditions. Except as otherwise expressly set forth in an Order,

-3-

 

support for such Third Party Products will be procured by Customer directly from the applicable
Third Party Products vendor. Upon reasonable notice to Customer, Veraz has the right to replace
software provided to Customer as part of Third Party Products with software that has similar
functionality.

4. SOFTWARE LICENSE, RESTRICTIONS AND PROPRIETARY RIGHTS

4.1. License. Subject to the trams and conditions of this Agreement, Veraz grants
Customer, under Veraz’s Intellectual Property Rights, a nonexclusive and nontransferable (subject
to Section 11.6) license, without the right to sublicense, only to: (a) use the Software on the
Hardware on which it was embedded when delivered to Customer; (b) install standalone Software (not
embedded on Hardware prior to delivery) on Hardware, Third Party Products, or Customer Equipment,
as applicable, for which it was intended, as specified in the Documentation or Order; and (c) use
the Software in accordance with any use restrictions specified or referenced in an Order
(including, but not limited to, concurrent user or other concurrent usage license limits and
geographic specific specifications). Customer acknowledges that the standalone Software as
delivered may not comply with all VoIP U.S. or non-U.S. standards, and may require the license of
additional Software functionality if available at Veraz’s then-current license fees in order to
support such standards.

4.2. Copies. Customer may make one (1) copy of the Software for back-up purposes and a
reasonable number of copies of Documentation for technical support personnel and other internal
uses, provided that any such copies will include Veraz’s copyright and any other proprietary
notices, and such copies remain the property of Veraz and/or its licensors, as applicable.

4.3. Restrictions. The license granted herein is granted solely to Customer, and not to
any affiliate of Customer. The license granted herein does not authorize Customer (nor may
Customer allow any third party) to: (a) copy, distribute, use or allow third party access to the
Software, except as expressly authorized under this Agreement; (b) decompile, disassemble, reverse
engineer, translate, convert or apply any procedure or process to the Software in order to
ascertain, derive, and/or appropriate for any reason, the source code or source listings for the
Software (except, in the European Union, to the extent that such acts may not lawfully be
prohibited) or any trade secret information or process contained in the Software; (c) modify,
incorporate into or with other software, or create a derivative work of any part of the Software;
(d) use, access or allow access to the Software in any manner to provide service bureau,
time-sharing or other computer services to third parties; (c) lease or lend the Software; (f)
disclose the results of any benchmarking of the Software, or use such results for its own competing
software development activities, without the prior written consent of Veraz; or (g) attempt to
circumvent any usage limits or other license, timing or use restrictions that are built in to the
Software. Customer is hereby notified that the Software may contain time-out devices, counter
devices, and/or other devices intended to ensure the limits of a particular license will not be
exceeded (“Limiting Devices”). If the Software does contain Limiting Devices, Veraz will ensure
that Customer receives any keys or other materials necessary to use the Software to the limits of
Customer’s license.

4.4. Ownership. Veraz and its licensors presently own and will continue to own all
worldwide right, title, and interest in and to

-4-

 

the Products and all worldwide Intellectual Property
Rights therein. Customer will not delete or in any manner alter the copyright, trademark, and
other proprietary rights notices
of Veraz and its licensors appearing on the Products as delivered to Customer. Veraz reserves all
rights and licenses in and to the Software not expressly granted to Customer under this Agreement.

4.5. No Trademark Rights. Veraz does not grant Customer any trademark rights under this
Agreement. Customer will not use, register or take other action with respect to any name, logo,
trademark, service mark, or other identifier used anywhere in the world by Veraz.

4.6. U.S. Government Restricted Rights. If Customer is an agency, department, or other
entity of the United States Government (“Government”), the use, duplication, reproduction, release,
modification, disclosure or transfer of the Software, manuals, or any technical specifications, or
any related documentation of any kind, including technical data (“Software and documentation”), is
restricted in accordance with Federal Acquisition Regulation (“FAR”) 12.212 for civilian agencies
and Defense Federal Acquisition Regulation Supplement (“DFARS”) 227.7202 for military agencies.

5. INSTALLATION, TRAINING, AND SUPPORT SERVICES

5.1. Installation Services. Veraz will perform the Installation Services for the
installation fees, if any, specified in an Order to install the Software on the Customer Equipment,
Third Party Products or Hardware at Customer’s site or as otherwise set forth in an Order.
Customer will be solely responsible for completing all tasks that are reasonably required to
prepare Customer’s site and equipment for the performance of such Services by Veraz. If specified
in the applicable Order, Customer will cause the Customer Equipment to be delivered, at Customer’s
expense, to Veraz’s facility for pre-installation of Software.

5.2. Training Services. Customer agrees to obtain, at Customer’s expense, and Veraz agrees
to provide, the training, if any, specified in an applicable Order.

5.3. Consulting; and Other Services. Customer agrees to purchase the professional
services, if any, as specified in an applicable Order. From time to time, at Customer’s reasonable
request and subject to availability of Veraz’s personnel, Veraz will provide to Customer at Veraz’s
then current consulting rates additional consulting services with respect to the Software and/or
Hardware, subject to terms and conditions for professional services to be mutually agreed by the
parties.

5.4. Support Services. Provided Customer continues to pay all support fees, Veraz will
provide Support Services as set forth in Schedule B for (i) Hardware for a period of sixty
(60) months from shipment, (ii) Software for so long as Veraz continues to offer such Post-Sales
Support Services generally to customers of the Software; and, (iii) if specified in an Order, Third
Party Products for so long as the applicable third party vendor offers applicable second level
support.

5.5. Obligations of Customer. Customer will provide designated Veraz personnel access to
the Products, including during Customer’s non-business hours, as is reasonably necessary to
install, maintain and service the Products. Customer will provide, at Customer’s expense,
reasonable working space, utilities, and adequate secure storage space, if required, for the
equipment and materials which Veraz personnel may reasonably require to install, maintain and
service the Products hereunder. Customer is

-5-

 

responsible for: (a) the results obtained from
Customer’s use of the Products; (b) the integration and interconnection with Customer’s hardware
and/or Third Party Products and/or systems; and (c) unless
otherwise set forth in an Order, installation of any Third Party Products or Customer Equipment.

5.6. Veraz Alterations. Upon reasonable notice (as further specified below) to Customer,
Veraz may make alterations to the Products: (a) as reasonably necessary to comply with this
Agreement, changed safety standards or governmental regulations, with notice provided at the time
Veraz becomes aware of such required changes; (b) to make the Products non-infringing with respect
to any patent right, copyright or other proprietary interest, with notice provided at the time
Veraz becomes aware of such required changes; or (c) to otherwise improve the Products, provided
such improvements do not affect Product form or fit, with notice provided at least three (3) months
before such changes are implemented.

5.7. Customer Equipment. Customer must provide Veraz with at least thirty (30) days
written notice of any changes to the Customer Equipment including, without limitation, model or
operating system changes. If such changes are not compatible with the Software, then the parties
will mutually agree on a solution or plan to remedy such compatibility issue; unless otherwise
expressly agreed in writing by Veraz, Customer will be responsible for any additional costs and
expenses, including, if applicable, additional Software license fees, to remedy such compatibility
issues with the Customer Equipment.

5.8. Deployment Sites. Customer may, at its option, make any changes deemed necessary to
the Deployment Sites set forth in an Order, provided this Customer provides Veraz with at least
thirty (30) days prior written notice of any changes which may adversely affect the operation of
the Software. In the event such changes adversely affect the operation of the Software, Veraz
agrees to provide additional Installation Service for a fee to be mutually agreed upon. In
addition, in the event of any changes to the Deployment Sites of the Hardware which cause
compatibility issues with networks, compliance issues with governmental or other requirements, or
other issues requiring modified Hardware or Software, Veraz will upon reasonable prior notice, at
Customer’s expense and Veraz’s then-current charges, provide any generally available additional
Hardware or Software to support the Hardware for any such relocated Deployment Site.

6. LIMITED WARRANTY

6.1. Hardware Warranty. Veraz warrants that for a period of ninety (90) days from the date
of shipment from Veraz the Hardware and any Software embedded in the Hardware as delivered to
Customer will be free from detects in material and workmanship under normal use. This limited
warranty extends only to Customer as original purchaser. Customer’s exclusive remedy and the
entire liability of Veraz and its suppliers under this limited warranty will be, at Veraz’s option,
repair or replacement in accordance with Veraz’s Basic Support Services policies, or a refund of
the purchase price if the Hardware is returned, freight and insurance prepaid. The repaired or
replaced Hardware is warranted for the longer of ninety (90) days from the date of shipment of the
repaired or replaced Hardware or the remaining Hardware warranty period. Veraz replacement parts
used in Hardware repair may be new or equivalent to new. All articles must be properly packed and
returned in accordance

-6-

 

with Veraz’s then-current Return Material Authorization (RMA) procedure set
forth in the Support Service Details attached to the Support Services Schedule attached hereto.
Where applicable, before Veraz provides warranty services, Customer agrees to: (a) follow the
problem determination, problem
analysis, and warranty services request procedures that Veraz provides; (b) secure all programs and
data contained in Hardware; and (c) inform Veraz of changes in the Hardware’s location or
Deployment Site. Veraz will not be obligated to repair or replace any Hardware or any component of
the Hardware or embedded Software under the warranty terms if Veraz reasonably believes that such
repair or replacement is caused in whole or in part by: accident; fault or negligence of Customer;
misuse or abuse; improper or unauthorized connection with any peripheral; external electrical
fault; or alteration, modification, installation, service or repair performed other than by Veraz
or by Veraz’s written permission.

6.2. Software Warranty. Veraz warrants to Customer, with respect to the Software
separately licensed hereunder and not embedded in the Hardware, that for a period of ninety (90)
days from the date of shipment from Veraz: (a) the media on which the Software is furnished will be
free from defects in material and workmanship under normal use; and (b) the Software substantially
conforms to its published specifications. Customer’s exclusive remedy and the entire liability of
Veraz and its suppliers under this limited warranty will be, at Veraz’s option, repair or
replacement in accordance with Veraz’s standard Basic Support Services policies, or a refund of the
Software license fee upon return of the Software to Veraz. In no event does Veraz warrant that the
Software is error-free or that Customer will be able to operate the Software without problems or
interruptions. The foregoing limited warranty applies only to failures in operation of the
Software that are reproducible in standalone form and does not apply to: (i) Software that is
modified by Customer or any third party; (ii) Software that is operated in violation of this
Agreement or other than in accordance with the published user Documentation; (iii) failures which
are caused by other software or hardware products; or (iv) any media or copy of the Software that
was not originally purchased or licensed from Veraz or for which the license fee was not timely
paid to Veraz by Customer.

6.3. Third Party Products Warranties. Any warranties for Third Party Products provided
hereunder will be passed on to Customer according to such third party vendor’s warranty coverage.
Customer will follow the required provisions in order to obtain warranty service on such third
party products.

6.4. Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 6, ALL EXPRESS, IMPLIED OR
STATUTORY CONDITIONS, TERMS, REPRESENTATIONS, AND WARRANTIES INCLUDING, WITHOUT LIMITATION, ANY
IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD
PARTY INTELLECTUAL PROPERTY RIGHTS (BUT NOT IN DEROGATION OF VERAZ’S INDEMNIFICATION OBLIGATIONS IN
SECTION 8), SATISFACTORY QUALITY, ARISING FROM A COURSE OF DEALING, USAGE, OR TRADE PRACTICE, ARE
HEREBY EXCLUDED TO THE EXTENT ALLOWED BY APPLICABLE LAW. THE PRODUCTS ARE NOT PRICED, DESIGNED,
MANUFACTURED OR INTENDED FOR USE OR RESALE IN HAZARDOUS ENVIRONMENTS REQUIRING FAIL-SAFE
PERFORMANCE, SUCH AS IN

-7-

 

AIR TRAVEL, SPACE TRAVEL, FIRE FIGHTING, POLICE OPERATIONS, 911 EMERGENCY
SYSTEMS, POWER PLANT OPERATION, NUCLEAR FACILITIES, MILITARY OPERATIONS, RESCUE OPERATIONS,
HOSPITAL AND MEDICAL OPERATIONS OR THE LIKE OR ANY OTHER USE IN WHICH THE FAILURE OF THE PRODUCT
COULD
LEAD DIRECTLY TO DEATH, PERSONAL INJURY, OR SEVERE PHYSICAL OR ENVIRONMENTAL DAMAGE (“HIGH RISK
ACTIVITIES”). VERAZ AND ITS SUPPLIERS SPECIFICALLY DISCLAIM ANY EXPRESS OR IMPLIED WARRANTY OF
FITNESS FOR HIGH RISK ACTIVITIES. This disclaimer and exclusion will apply even if the express
warranty set forth above fails of its essential purpose.

7. TERM AND TERMINATION

7.1. Term. This Agreement will commence on the Effective Date and will continue in effect,
unless earlier terminated in accordance with this Agreement, for a period of ninety days (90) and
thereafter automatically renew for successive ninety day (90) terms unless either parry gives
written notice to the other party no less than thirty (30) days prior to the expiration of any such
renewal term of its intent not to renew at the end of such term. Notwithstanding the foregoing,
Section 4 (Software License, Restrictions and Proprietary Rights) will survive any termination of
this Agreement under this Section 7.1 (unless Customer notifies Veraz to the contrary pursuant to
such termination), but will not survive any termination of this Agreement arising out of Sections
7.2 or 7.3. Customer may terminate a Software license at any time by destroying all copies of the
Software. Upon termination of a Software license, Customer must return all copies of the Software
and Documentation to Veraz, or destroy all such copies and certify in writing such destruction to
Veraz.

7.2. Default. If either parry defaults in the performance of any of its material
obligations including, without limitation, Customer’s payment obligations hereunder, and if such
default is not corrected within thirty (30) days (ten (10) days in the case of non-payment) after
written notice thereof by the other party, then the non-defaulting party, at its option, may, in
addition to any other remedies it may have, terminate this Agreement by giving written notice of
termination to the defaulting party.

7.3. Bankruptcy. This Agreement may be terminated immediately by a party without notice if
any one of the following occurs: the other party (i) ceases to carry on business as a going
concern, (ii) becomes the object of the institution of voluntary proceedings in bankruptcy or
liquidation, or (iii) becomes the object of the institution of involuntary proceedings in
bankruptcy or liquidation, or a receiver is appointed with respect to a substantial part of its
assets, if such petition or proceeding is not dismissed or receiver discharged within thirty (30)
days of filing or appointment.

7.4. Nonexclusive Remedy. Termination of this Agreement by either party will be a
nonexclusive remedy for breach and will be without prejudice to any other right or remedy of such
party.

7.5. Injunctive Relief. Each party acknowledges that its breach of Section 4 (Software
License, Restrictions, and Proprietary Rights) or Section 10 (Confidential Information) would cause
irreparable harm to the other party, the extent of which would be difficult to ascertain.
Accordingly, each party agrees that, in addition to any other remedies to which such other party
may be entitled, such other party

-8-

 

will have the right to obtain immediate injunctive relief in the
event of a breach of such sections.

7.6. Survival. Sections 4.3, 4.4, 4.6, 8, 9, 10, and 11, and all purchase or payment
obligations for Products and Services incurred prior to the termination of this Agreement, will
survive such termination.

8. INDEMNITIES

8.1. Veraz IP Indemnity. Veraz will defend any action brought against Customer to the
extent that it is based upon a claim that a Product, as provided by Veraz to Customer under this
Agreement and used within the scope of this Agreement, infringes any copyright, U.S. patent or any
patent issued by a member state of the EU, and Veraz will pay any costs, damages and reasonable
attorneys’ fees attributable to such claim that are awarded against Customer or agreed upon by
Veraz in settlement, provided that Customer: (a) promptly notifies Veraz in writing of the claim;
(b) grants Veraz sole control of the defense and settlement of the claim; and (c) provides Veraz
with all assistance, information and authority required for the defense and settlement of the
claim. Veraz will not reimburse Customer for any expenses incurred without the prior written
approval of Veraz. Customer may engage counsel of its choice at its own expense.

8.2. Injunction. If Customer’s use of any Product hereunder is, or in Veraz’s opinion is
likely to be, enjoined due to the type of infringement specified in Section 8.1 above, Veraz may,
at its sole option and expense: (a) procure for Customer the right to continue using such Product
under the terms of this Agreement; (b) replace or modify such Product so that it is non-infringing
and substantially equivalent in function to the enjoined Product; or (c) if options (a) and (b)
above cannot be accomplished despite Veraz’s diligent efforts, then Veraz may terminate Customer’s
rights and Veraz’s obligations hereunder with respect to such Product and, upon return of the
allegedly infringing item, refund to Customer the unamortized portion of the fees paid hereunder
for such Product, based upon a straight-line five (5) year depreciation commencing as of the date
of delivery to Customer of such Product.

8.3. Exclusions. Notwithstanding the terms of Section 8.1, Veraz will have no liability
for any infringement claim of any kind to the extent it results from: (a) modification of the
Product made other than by Veraz; (b) the combination, operation or use of any Product supplied
hereunder with equipment, devices or software not made and supplied by Veraz to the extent such a
claim would have been avoided if the Product were not used in such combination; (c) failure of
Customer to use updated, modified or substitute Products provided by Veraz to avoid infringement;
(d) use of the Products by Customer other than as authorized under this Agreement, or (e)
compliance by Veraz with designs, plans or specifications furnished by or on behalf of Customer.
Customer will defend and hold Veraz harmless against any expense, judgment or loss for alleged
infringement of any patents or copyrights or misappropriation of trade secrets which result from
Veraz’s compliance with Customer’s designs, specifications or instructions.

8.4. Sole Remedy. THE FOREGOING PROVISIONS OF THIS SECTION 8 SET FORTH VERAZ’S AND ITS
SUPPLIERS’ SOLE AND EXCLUSIVE OBLIGATIONS, AND CUSTOMER’S SOLE AND EXCLUSIVE REMEDIES, WITH RESPECT
TO INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS.

-9-

 

8.5. Customer Indemnity. Customer will defend any action brought against Veraz to the
extent that it results from or in connection with the use, manufacture, or distribution of
Customer’s products and Customer’s direct and indirect end users in any country, and Customer will
pay any costs, damages and reasonable attorneys’ fees attributable to such claim that are awarded
against Veraz or agreed upon by Customer in settlement, provided that Veraz: (a) promptly notifies
Customer in writing of the claim; (b) grants Customer sole control of the defense and
settlement of the claim; and (c) provides Customer with all assistance, information and authority
required for the defense and settlement of the claim. Customer will not reimburse Veraz for any
expenses incurred without the prior written approval of Customer. Veraz may engage counsel of its
choice at its own expense. This indemnification obligation will not apply to infringement actions
or claims if such actions or claims are based solely on the use of the Hardware or Software in the
form provided by Veraz.

9. LIMITATION OF LIABILITY

9.1. Limitation. NEITHER PARTY NOR ITS THIRD PARTY SUPPLIERS AND LICENSORS WILL BE LIABLE
TO THE OTHER WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE,
STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY, AND WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGE, (A) FOR ANY PUNITIVE, SPECIAL, INCIDENTAL OR CONSEQUENTIAL
DAMAGES OR LOST DATA, OR (B) FOR COST OF PROCUREMENT OF SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES,
OR (C) FOR LOSS OR CORRUPTION OF DATA OR INTERRUPTION OF USE, OR (D) FOR ANY AMOUNTS IN EXCESS, IN
THE AGGREGATE, OF THE FEES PAID OR OWED TO VERAZ HEREUNDER FOR THE ORDER TO WHICH THE CAUSE OF
ACTION OR CLAIM IS COVERED OR RELATED. NOTHING IN THIS AGREEMENT WILL LIMIT A PARTY’S LIABILITY
FOR FRAUD OR FOR DEATH OR PERSONAL INJURY CAUSED BY A PARTY’S NEGLIGENCE.

9.2. Exceptions. The liability limitations set forth in Section 9.1 above do not apply to:
(a) either party’s breach of its confidentiality obligations set forth in Section 10 below; or (b)
Customer’s breach of the license grant and restrictions set forth in Section 4 above, or any
infringement of Veraz’s Intellectual Property Rights.

10. CONFIDENTIAL INFORMATION

10.1. Confidential Information. As used in this Agreement, the term “Confidential
Information” means any confidential information disclosed by one party to the other pursuant to
this Agreement. Confidential Information may also include oral information disclosed by one party
to the other pursuant to this Agreement. Notwithstanding any failure to so identify disclosed
information as Confidential Information, (a) the terms of this Agreement, information pertaining to
the Software and Documentation including without limitation, the development status of the Software
or Hardware, the functionality of the Software or Hardware, the appearance, content and flow of the
Software’s user interface and the Documentation and all materials relating to Veraz’s or Customer’s
customers, products, and business which Veraz or Customer makes available to Customer or Veraz
hereunder will be deemed to be Confidential Information; and (b) any

-10-

 

information disclosed in
circumstances of confidence, or would be understood by the parties, exercising reasonable business
judgment, to be confidential, including information viewed or learned by a party during a visit to
the other party’s facilities, will be deemed Confidential Information.

10.2. Confidentiality. Each party will treat as confidential all Confidential Information
of the other party, will not use such Confidential Information except as set forth herein, and will
use reasonable efforts not to disclose such Confidential Information to any third party.
Without limiting the foregoing, each of the parties will use at least the same degree of care that
it uses to prevent the disclosure of its own confidential information of like importance to prevent
the disclosure of Confidential Information disclosed to it by the other party under this Agreement,
but in no event will it use less than reasonable efforts. Each party will promptly notify the
other party of any actual or suspected misuse or unauthorized disclosure of the other party’s
Confidential Information.

10.3. Exceptions. Notwithstanding the above, neither party will have liability to the
other with regard to any Confidential Information of the other which the receiving party can prove:
(a) was publicly known at the time it was disclosed or has become publicly known through no fault
of the receiving party; (b) was legally known to the receiving party, without restriction, at the
time of disclosure; (c) is disclosed with the prior written approval of the disclosing party; (d)
was independently developed by the receiving party without any use of the Confidential Information;
(e) became known to the receiving party, without restriction, from a source other than the
disclosing party, without breach of this Agreement by the receiving party and otherwise not in
violation of the disclosing party’s rights; or (f) is disclosed pursuant to the order or
requirement of a court, administrative agency, or other governmental body; provided, however, that
the receiving party will provide prompt notice thereof to the disclosing party to enable the
disclosing party to seek a protective order or otherwise prevent or restrict such disclosure.

10.4. Return of Confidential Information. Upon expiration or termination of this
Agreement, each party will return all tangible Confidential Information received from the other
party.

10.5. Press Releases. Veraz will not, at any time, issue any press releases including
Customer’s name without the prior written approval of the Customer. Customer agrees to participate
in Veraz marketing programs including but not limited to a press release within ninety (90) days of
the signing of this Agreement announcing a customer relationship and/or network commissioning. For
any mutually agreed press release, Veraz may restate the substance or language of that press
release for so long as it remains factually accurate. Further, following the issuance of such
mutually agreed press release, Veraz may without obtaining further consent by Customer identify
Customer as a customer of Veraz and a user of the Products in press releases and marketing
materials, and in demonstrations and presentations. Identifying Customer as a customer may include
using Customer’s name, referring to the existence of this Agreement, and/or using an exact copy of
Customer’s corporate logo to identify Customer on Veraz’s web site. At Customer’s request, its
logo will be associated with a link to Customer’s web site. Veraz also may interview Customer’s
personnel regarding the performance and features of the Products (subject to Customer’s prior
approval). Veraz may refer potential new customers to Customer as a reference for the Products and

-11-

 

Veraz, and Customer agrees to respond reasonably to all such reference contacts.

11. GENERAL

11.1. Governing Law. This Agreement will be governed by the laws of the State of
California, and the United States, without reference to conflict of laws principles and without
reference to UCITA (the Uniform Computer Information Transactions Act) as it may be enacted in the
applicable jurisdiction. The parties expressly agree that the United Nations Convention on
Contracts for the International Sale of Goods will not apply to this Agreement. In any action or
proceeding
to enforce rights under this Agreement, the prevailing party will be entitled to recover costs and
attorneys’ fees.

11.2. Severability. If for any reason a court of competent jurisdiction finds any
provision of this Agreement invalid or unenforceable, that provision of the Agreement will be
enforced to the maximum extent permissible and the other provisions of this Agreement will remain
in full force and effect.

11.3. Independent Contractors. The parties to this Agreement are independent contractors
and this Agreement will not establish any relationship of partnership, joint venture, employment,
franchise, or agency between the parties. Neither party will have the power to bind the other or
incur obligations on the other’s behalf without the other’s prior written consent.

11.4. Modification. No modification or amendment of any provision of this Agreement will
be effective unless in writing and signed by the parties’ authorized representatives.

11.5. Waiver. The failure of either party to enforce at any time any of the provisions of
this Agreement will in no way be construed to be a present or future waiver of such provisions, nor
in any way affect the right of either party to enforce each such provision thereafter. The express
waiver by either party of any provision of this Agreement will not constitute a waiver of any
future obligation to comply with such provision.

11.6. Assignment. This Agreement and the rights hereunder are not transferable or
assignable by Customer (and any attempted assignment will be void) without the prior written
consent of Veraz, except, provided that Customer has paid Veraz all Hardware fees and Software
license fees due and owing to Veraz, to a person or entity who acquires all or substantially all of
the assets or business of Customer, whether by sale, merger or otherwise (“Change of Control”);
provided, that under no circumstances will Customer undertake a Change of Control for the primary
purpose of transferring the Products to a third party. Veraz may assign or transfer this Agreement
without Customer’s consent. Subject to the foregoing, this Agreement will bind and inure to the
benefit of the parties, their respective successors and permitted assigns.

11.7. Notices. All notices, demands or consents required or permitted under this Agreement
will be in writing. Notice will be considered effective on the earlier of actual receipt or: (a)
the day following transmission if sent by facsimile followed by written confirmation; (b) one (1)
day (two (2) days for international addresses) after posting when sent via an express commercial
courier; or (c) five (5) days after posting when sent via certified mail, return receipt requested.
Notice will be sent to the address for each party set forth on the first page of this Agreement,
or at such other address as will be given by either party to the other in writing. Notices to
Veraz will be addressed to the attention of: Chief Financial Officer.

-12-

 

11.8. Force Majeure. Except for Customer’s obligations to pay Veraz hereunder, no default,
delay or failure to perform on the part of either party will be considered a breach of this
Agreement if such default, delay or failure to perform is shown to be due to causes beyond the
reasonable control of the party charged with a default, including, but not limited to, causes such
as strikes, lockouts or other labor disputes, riots, civil disturbances, actions or inactions of
governmental authorities or suppliers, material shortages, epidemics, war, embargoes, severe
weather, fire, earthquakes, acts of God or the public enemy, or nuclear disasters; provided, that
for the duration of such force majeure the party
charged with such default must continue to use reasonable efforts to overcome such force majeure.

11.9. Entire Agreement. The terms and conditions set forth herein constitute the entire
agreement between the parties and supersede all previous agreements and understandings, whether
oral or written, between the parties with respect to the subject matter hereof. To the extent
there is a conflict between the terms in the main text of this Agreement and any terms in the
Order, the terms in the Order will prevail.

11.10. Export Law Assurances. Customer understands that the Software, Hardware and
Documentation are subject to export control laws and regulations. Customer will not export or
re-export the Software, Hardware or Documentation or any underlying information or technology
except in full compliance with all United States and other applicable laws and regulations. In
particular, but without limitation, none of the Software, Hardware, the Documentation or any
underlying information or technology may be exported or re-exported: (a) into (or to a national or
resident of) any country to which the U.S. embargoes or restricts the export of goods or services,
including without limitation Cuba, Iraq, Libya, North Korea, Iran, Sudan or Syria; or (b) to anyone
on the U.S. Treasury Department’s list of specially designated nationals or the U.S. Commerce
Department’s table of denial orders. Customer agrees to the foregoing and represents and warrants
that Customer is not located in, under control of, or a national or resident of any such country or
on any such list.

11.11. English Language. This Agreement is in the English language only, which language
will be controlling in all respects. No translation, if any, of this Agreement into any other
language will be of any force or effect in the interpretation of this Agreement or in determination
of the interests of either party hereto. Furthermore, the parties agree that all correspondence,
notices, orders, claims, suits and other communication between the parties hereto will be written
or conducted in English.

11.12. Local Laws. Customer represents and warrants that, to the best of Customer’s
knowledge, the provisions of this Agreement, and the rights and obligations of the parties
hereunder, are enforceable under the laws of the countries within which the Software, Hardware and
Documentation will be used.

11.13. Basis of Bargain. Each party recognizes and agrees that the warranty disclaimers
and liability and remedy limitations in this Agreement are material bargained for considerations of
this Agreement and that they have been taken into account and reflected in determining the
consideration to be given by each party under this Agreement and in the decision by each party to
enter into this Agreement.

END

-13-

 

SCHEDULE A

INITIAL ORDER

     This Order, effective upon the Effective Date set forth below, supplements and amends the
Master Purchase and License Agreement (“Agreement”) by and between Veraz Networks, Inc. (“Veraz”)
and the party identified below (“Customer”) to license the Software and purchase the Hardware and
Services specified herein and to incorporate the additional terms set forth below. All of the
terms and conditions of the Agreement will continue in full force and effect except as amended by
the terms of this Order. Unless otherwise specified, terms defined in the Agreement will apply to
this Order.

     1. ORDER EFFECTIVE DATE: March 10, 2005

     2. CUSTOMER INFORMATION:

	 	 	 
	Customer:

	 	StarVox Communications, Inc.
	Customer Contact and Email Address for Notice
of Software FTP Download:

	 	Name: Douglas S. Zorn

Email:

3. SEND PAYMENTS TO:

Comerica Bank

San Jose Airport Office

226 Airport Parkway

San Jose, Ca. 95110

(408) 556-5000

Re: Veraz Networks, Inc.

Account #1892018175

ABA #121137522

     4. PRODUCTS, DEPLOYMENT SITES, FEES AND PAYMENT TERMS

          A. SOFTWARE ORDER.

	 	 	 	 	 
	Software:

	 	Veraz ControlSwitchTM	 	 
	 
	 	 	 	 
	Application:

	 	Packet Toll Tandem Services	 	 
	 
	 	 	 	 
	Gateway Ports Quantity:

	 	50,000 ControlSwitch Gateway ports	 	 
	 
	 	 	 	 
	Optional
	 	Item	 	Limitations
	 
	 	 	 	 
	Modules/Functionality:

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	SIP Internetworking Support
	 	5,000 Concurrent Calls
	 

	 	H.323 v2 Internetworking Support
	 	5,000 Concurrent Calls
	 

	 	Cisco 5350 and Cisco 5400 Interface v
	 	None
	 
	 	 	 	 
	Deployment Site(s):
	 	 	 	 

-14-

 

	 	 	 
	Functionality:

	 	The Software consists of various functional capabilities
(“Functionality”). Only the Functionality described in the
Documentation with respect to Packet Toll Tandem Services and
any Optional Modules set forth above are being licensed to
Customer pursuant to this Order even though additional
Functionality may otherwise be accessible in the Software.
	 
	 	 
	Installation

	 	Customer acknowledges and agrees that the Software is pre
installed on the Customer Equipment as of the Order Effective
Date.

          B. HARDWARE ORDER

I. l-Gate 4000

	 	 	 
	Number of 1-Gate 4000s	 	 
	(Note 1)	 	Deployment site
	5

	 	601 W. 26th Street
	 

	 	6th Floor
	 

	 	New York, NY 10011
	 
	 	 
	3

	 	200 SE 1st Street
	 

	 	9th Floor
	 

	 	Miami, FL 33142
	 
	 	 
	4

	 	2401 Locust St
	 

	 	Suite 401
	 

	 	Philadelphia, PA 19103
	 
	 	 
	2

	 	2461 W. Las Palma Ave
	 

	 	Bldg 6, 1st Floor
	 

	 	Anaheim, CA 92801
	 
	 	 
	6

	 	2323 Bryan St.
	 

	 	Suite 1400
	 

	 	Dallas, Texas
	 
	 	 
	3

	 	3000 Irving Blvd.
	 

	 	Dallas, TX 75247
	 
	 	 
	1

	 	6855 Crescent Dr.
	 

	 	Norcross, GA 30340
	 
	 	 
	1

	 	2101 Roberts Dr.
	 

	 	Broadview, IL 60153

Note 1: All 1-Gate 4000s are configured with Veraz’s standard full redundancy package,
3 DS3s, G.711 for a cumulative total of 50,000 ports. Customer to provide racks for I-Gate
4000s. Includes cabling and connectors for DS3 interfaces and BNC connectors to interface
with Customer equipment. WAN (IP Link) cabling and connectors included. DSDU ETSI mounting
brackets included. DSDU includes DC power cables for connecting to I-Gate 4000s.
Infra-frame cabling and standard power distribution included.

     II. Ulticom Cards

	 	 	 	 	 
	Description	 	Quantity
	Ulticom PCI-bus Signalware adapter ends (8 Port) 

(“Ulticom Cards”)
	 	 	[2]	 

-15-

 

     III. Memory Cards

	 	 	 	 	 
	Description	 	Quantity
	I-Gate 4000 Media Gateway 64MB Flash Memory Card Upgrade
	 	 	[25]	 

 

Note: For any Deployment Site for which access to I-Gate 4000s is not available, Veraz
shall deliver the applicable Memory Upgrades to Customer FOB Veraz’s designated shipping
location.

          C. CUSTOMER EQUIPMENT

     Customer acknowledges and agrees that Customer shall be required to provide various Customer
Equipment for installation and operation of the Standalone Software and Ulticom Cards.

          D. TOTAL FEES (IN U.S. DOLLARS) FOR INITIAL PURCHASE

	 	 	 	 	 
	Item	 	Fees
	Hardware and Software (excluding Memory Cards)
	 	 	[$710,000]	 
	Memory Cards
	 	 	[$  40,000]	 
	Quarterly Enhanced Post-Sales Support Services Fees: Software
	 	 	[$101,500]	 
	Quarterly Enhanced Post-Sales Support Services Fees: Hardware
	 	 	 	 

          E. PAYMENT TERMS

               1. The Products Fee due to Veraz under Section 4.F. above (“Product Fees”) will be due and
payable via wire transfer on or before March 31, 2005.

               2. Initial annual Post-Sale Support Services shall commence on the earlier of Ready for
Service or July 1, 2005 (“Support Commencement Date”). The term “Ready for Service” means that the
Products are available for Customer’s use, and Customer has set up the necessary Customer Equipment
infrastructure to put the Products into production. Post-Sales Support Services Fees will be due
and payable via wire transfer on a calendar quarterly basis commencing on the Support Commencement
Date. The initial payment shall be prorated for the number of days, based on a ninety day calendar
quarter, remaining in the then-current calendar quarter (“Initial Support Payment”). Renewal
quarterly Post-Sale Support Services Fees will be payable quarterly in advance via wire transfer,
within thirty (30) days after the date of Veraz’s invoice to Customer. Renewal annual Post-Sale
Support Services Fees for the initial eight full quarterly periods (i.e. through June 30, 2007)
will be [$101,500] per quarter and shall not increase or decrease during such period. Thereafter,
Veraz may change such fees in accordance with Section 1.3 of Schedule B.

     5. ADDITIONAL TERMS AND CONDITIONS:

     Notwithstanding anything to the contrary in the Agreement:

-16-

 

               A. Used Hardware. Customer acknowledges that the Hardware being ordered under this
Initial Order is used, was previously sold by Veraz to Nexes LLC (or its predecessors in interest)
(“Nexes”), and is being accepted by Veraz from Nexes in full satisfaction of the debt owed by Nexes
to Veraz for the Products. Customer has requested that the Hardware remain at the Deployment
Sites. Customer acknowledges that the list of Deployment Sites for the Hardware set forth above is
provided by Veraz in good faith, but that Nexes may have relocated a portion of the Hardware.
Veraz shall use reasonable efforts to ascertain the actual location of each I-Gate set forth
above as part of Veraz’s Post-Sales Support Services and shall inform Customer of any
variances from such Deployment Sites.

               B. Warranty of Title. Veraz represents and warrants that Veraz owns all right, title
and interest in and to the Hardware being purchased by Customer hereunder.

               C. NO WARRANTY. THE PRODUCTS ARE PROVIDED “AS IS, WHERE IS” AND EXCEPT FOR THE
WARRANTY OF TITLE SET FORTH IN SECTION 5.B. ABOVE, VERAZ DISCLAIMS ALL WARRANTIES AND
REPRESENTATIONS, WHETHER EXPRESS OR IMPLIED, WITH RESPECT TO THE PRODUCTS, INCLUDING, WITHOUT
LIMITATION, THE WARRANTIES OF DESIGN, MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR
PURPOSE, OR WARRANTIES ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICE. Veraz has no
obligation to ensure the operability of any network of which the Products are, were, or shall be, a
part.

               D. Memory Upgrade. As part of Veraz’s Post-Sales Support for the Products as set
forth in Schedule B to the Agreement, Veraz shall, upon being provided access to the
Hardware and to any applicable Customer Equipment, install the Memory Cards in the Hardware. Veraz
shall as soon as reasonably practicable make one on-site trip per Deployment Site in order to
perform such services at Veraz’s sole cost and expense provided that access is made available to
Veraz personnel at the Deployment Sites on or before June 30, 2005. In the event access is denied,
or all infrastructure or Customer Equipment required to perform the foregoing installation services
is not available at a Deployment Site on or before June 30, 2005, Veraz shall have no obligation to
complete such services at such Deployment Site unless Customer pays travel and living expenses and
Veraz’s then-current time and materials rate for its personnel, not to exceed [$1500] per
Deployment Site.

	 	 	 	 	 	 	 	 	 	 	 
	AGREED AND ACCEPTED:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	VERAZ NETWORKS, INC.	 	 	 	CUSTOMER
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Allen Morton
	 	 	 	By:
	 	/s/ Douglas S. Zorn	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Allen Morton
	 	 	 	Name:
	 	Douglas S. Zorn	 	 
	Title:

	 	CFO
	 	 	 	Title:
	 	CEO	 	 

-17-

 

SCHEDULE B

(to Master Purchase and License Agreement)

POST-SALES SUPPORT SERVICES

1. OVERVIEW.

1.1. Provision by Veraz of the Services as more particularly described in Attachment 1 (Support
Service Details) for the Products will begin upon the Support Commencement Date and will continue
through the end of the initial calendar quarter and continue for successive calendar quarters
thereafter (each such calendar quarter, a “Service Period”) until either party gives a minimum of
sixty (60) days written notice to the other party of its intentions not to renew the current
quarterly Service Period. Provision of Services is conditioned upon the following: (a) Customer is
current in paying all applicable charges for the Services; (b) Customer has provided Veraz with
immediate remote on-line access to the affected Software in Customer’s network as set forth in
Attachment 1; and (c) the Products have been installed in their current location by Veraz and
covered continuously under Veraz warranty or Services.

1.2. Purchasing the Basic Support Service is a prerequisite for the purchase of any Extended or
Premium Support Services options. Premium Support Services options may not be available for all
Products or in all geographic locations.

1.3. After the initial eight (8) quarterly Service Periods, in the event of changes in fees or
Services, Veraz will provide a Support Services quotation for the succeeding quarterly Service
Period not less than sixty (60) days before the end of the then-current Service Period. The
parties shall discuss any concerns with such quotation, and Customer shall have until thirty (30)
days prior to the expiration of the then-current Support Period to accept or reject such Support
Service quotation. In the event Customer rejects the Support Service quotation, or fails to timely
accept or reject such quotation, Post-Sales Support shall terminate at the end of the then-current
Support Period.

1.4. Additional Products purchased by Customer during a Service Period will be automatically
covered by the Services, with fees prorated through the end of the current Service Period, unless
otherwise expressly set forth in the order for such Products. Such Products will be added to the
Product list and will be included in the Support Services Quotation for the next Service Period.
Allowance will be made for any remaining warranty applicable to the new Products affecting Services
fees.

1.5. Products may be removed from Support coverage by the Customer providing a minimum of sixty
(60) days prior written notice to Veraz. In such event Veraz shall issue a Support Services
quotation for the next Service Period showing revised fees and Services. Notwithstanding the
foregoing, if Customer elects to purchase Services for Software, Customer must purchase Services
with respect to all of the Software.

1.6. If approved by Veraz, Customer may reinstate cancelled Services by paying any such fees that
are in arrears, and any coats, on a time and materials basis, that Veraz incurs to update
installations. In some cases, where the Customer is using an Obsolete Software Release (as defined
in Attachment 1), Customer may be required to migrate to a currently supported Software Release (as
defined in Attachment 1) and pay the corresponding license fees.

-18-

 

1.7. Veraz will offer support for day previous Software Release until it becomes an Obsolete
Software Release, and will offer support for Software generally for so long as Veraz makes such
support available to all customers of the Software. Veraz will offer support for Hardware for the
period of time specified in the original order for the Hardware or accompanying Master Purchase and
License Agreement.

1.8. In the case that any of the Products are relocated while covered by the Services, Customer
shall give notice to Veraz in writing and the Services on the relocated Products will be suspended
subject to inspection, execution of any required remedial work and certification by Veraz, all at
Customer’s expense at Veraz’ then current published rates, unless reinstallation after such
relocation is carried out by Veraz. Veraz reserves the right to adjust charges for such Products
or to decline to provide any further Services for the relocated Products.

1.9. Unless expressly set forth in an Order, no third party products shall be supported (unless
such products are embedded within the Hardware or Software and not separately sold or licensed by
Veraz) by Veraz. Support for such third party products will be procured by Customer directly from
the applicable third party products vendor.

2. SERVICES CHARGES AND INVOICING.

Charges for the Services will be detailed on the Order executed by the Customer and cover the
provision of the Services for the specific Products and location(s) set forth in such Order.
Charges for On-Demand Services will be as set forth in the Order. The charges for the specific
Products identified in such Orders are subject to adjustment in the event new Products are added to
a Customer site or a Product is relocated. Payment terms and conditions shall be as set forth in
the Order.

3. MODIFICATION OF HARDWARE.

Customer’s personnel will not attempt any repair, maintenance or modification to the Hardware outer
than swapping out Hardware identified as Field Replaceable Units (FRUs) while it is covered under
an Order for Services provided in this Agreement, unless agreed to in writing by Veraz. Customer
will notify Veraz of any change or modification to the Hardware covered under an order for Services
outlined in this Agreement. If the change or modification creates a safety hazard or is likely to
cause Hardware malfunctions, Veraz may, with the Customer’s concurrence and at the Customer’s
expense, correct the condition and continue to perform the Services. If the condition cannot be
corrected to Veraz’ satisfaction, Veraz may discontinue the Services on the Products without
further obligation.

4. WARRANTY.

Veraz warrants that the Services will be performed in a professional and workmanlike manner, using
qualified technicians, familiar with the Products and their operation. THE PARTIES ACKNOWLEDGE AND
AGREE THAT THIS SCHEDULE IS FOR THE PERFORMANCE OF SERVICES ONLY, THAT THE WARRANTY STATED HEREIN
IS EXCLUSIVE AND THAT VERAZ MAKES NO OTHER WARRANTIES, WRITTEN, ORAL, EXPRESS OR IMPLIED, INCLUDING
ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THIS AGREEMENT OR THE MATERIALS
AND SERVICES CONTEMPLATED HEREUNDER.

-19-

 

5. LIMITATION OF LIABILITY.

EXCEPT FOR; (i) PERSONAL INJURY OR PHYSICAL PROPERTY DAMAGE WHICH DIRECTLY RESULTS FROM THE
NEGLIGENT OR INTENTIONALLY WRONGFUL ACTS OR OMISSIONS OF EITHER PARTY; (ii) DAMAGES RESULTING FROM
MISUSE OR MISAPPROPRIATION OF VERAZ’ SOFTWARE OR OTHER INTELLECTURAL PROPERTY RIGHTS; OR (iii)
DAMAGES FOR EITHER PARTY’S FAILURE TO PROTECT THE OTHER’S CONFIDENTIAL OR PROPRIETARY INFORMATION,
IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INCIDENTAL, INDIRECT, SPECIAL, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES ARISING FROM CONNECTED WITH OR RELATING TO THIS SCHEDULE, WHETHER OR NOT SUCH
DAMAGES ARE FORESEEABLE AND WHETHER OR NOT A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES AND EACH PARTY’S TOTAL LIABILITY SHALL NOT EXCEED THE TOTAL CHARGES FOR SERVICES PAID OR
PAYABLE DURING THE RELEVANT AGREEMENT YEAR.

6. SUBCONTRACTING.

Veraz retains the right to subcontract any or all of the Services to be performed under this
Schedule to a qualified subcontractor of Veraz’ choosing. In such event, Veraz shall remain
obligated to the Customer for the work subcontracted.

-20-

 

Attachment 1

Support Service Details

1. DEFINITIONS

     1.1. “Early Field Trial Release” means a release of the Software prior to general commercial
availability. Such releases are provided “AS IS”, without warranty, provided that Veraz will
provide beta release support, which involves accepting feedback (which feedback shall be owned by
Veraz), and notifying the Customer when Error Corrections or feature enhancements are available.

     1.2. “Error” means any verifiable and reproducible failure of the Software to substantially
conform to the Specifications. The term “Error” will not include any failure of the Software to
substantially conform to the Specifications that: (i) results from Customer’s improper use of the
Software; (ii) does not materially affect the operation and use of the Software; or (iii) results
from the modification by Customer of the Software not contemplated by this Agreement.

     1.3. “Error Correction(s)” means a (i) modification or addition to or deletion from the
Software, that, when made to the Software, materially conforms the Software to the Specifications,
or (ii) a procedure or routine that (a) is mutually acceptable to both Veraz and Customer in good
faith, and (b) when observed in the regular operation of the Software eliminates the material
adverse effect of such Error to Customer.

     1.4. “Maintenance Release” means a patch directed at providing Error Correction(s) for Errors
reported hereunder or by other customers.

     1.5. “Obsolete Software Release” means any Software Release prior to the current Software
Release and the two preceding major Software Releases, where “major” Software Release denotes any
Software Release indicated by any changes in the numeric identifier for the Software Release to any
digits located immediately to the right of the left-most decimal (i.e. x.(x).x )

     1.6. “Permanent Resolution” means that an Error Correction has been provided and the Service
Request for the Error is closed.

     1.7. “Response Time” means the time required for an ActionLine support technician to
acknowledge receipt of an issue via phone answer, callback or Service Request update.

     1.8. “Restore Time” means the time required to resolve problem with a Workaround or
Maintenance Patch from time of receipt of issue from Customer.

     1.9. “Service Request” means a Customer request for Service hereunder as logged under Veraz’s
call tracking system and assigned a reference number.

     1.10. “Software Release” means the particular numerical classification and identification of
Software, as designated by Veraz, that refers to a set of Software modules that provide specific
functionality, as described in the corresponding Documentation for any such Software Release.

-21-

 

     1.11. “Specifications” means Veraz’s standard, published approved description of the
performance and functionality of the Software.

     1.12. “TAC” means a Technical Assistance Center.

     1.13. “Updates and Upgrades” means updates and upgrades to the Software functionality licensed
by Customer and which are made generally available to other licensees of such Software
functionality who have purchased Basic Support Services.

     1.14. “Workaround” means a temporary solution to an Error that allows the Software to regain
functionality and provide all major functions in accordance with the Specifications.

2. BASIC SUPPORT SERVICES

     2.1. ActionLine 8X5 Remote Support.

Veraz shall make available to Customer the following remote technical support and services for
the Products (Hardware and/or Software, as applicable):

	 	(i)	 	Technical telephone support eight (8) hours a day, five
(5) days a week between the hours of 9:00 AM and 5:00 PM local time for the
assigned TAC, Monday through Friday excluding Veraz holidays (“Basic Support
Hours”), for queries and assistance related to the Products.
	 
	 	(ii)	 	Where applicable, use of remote diagnostic capabilities
in the Products by Veraz engineers to assist in the diagnosis and resolution
of problems.
	 
	 	(iii)	 	Access to Veraz call tracking web site, which will
provide current details and status of all Customer open and recently closed
calls and allow Customer to log new Service Requests, subject to
registration of individual users and adherence to Veraz security
requirements.

     2.2. Hardware Repair.

Veraz will repair defective Field Replaceable Units (“FRU”). Unless otherwise agreed by the
parties, Veraz shall complete repairs and return a repaired FRU or ship an equivalent replacement
FRU within thirty (30) business days of receipt of a defective FRU at the Veraz assigned TAC.

Once a FRU is identified as faulty, the Customer shall obtain a Return Material Authorization
(“RMA”) number from Veraz and then return the FRU for repair/replacement. RMA requests shall be
addressed by Veraz during Basic Support Hours for the assigned TAC. Customer shall appropriately
package the FRU to be returned to ensure that it is not damaged in shipment and is clearly marked.
Any FRU damaged in transit will be repaired at the Customer’s expense or, if in the opinion of
Veraz the damage in sufficient to compromise its future reliability, the FRU will be returned to
the Customer unrepaired.

Customer shall bear the risk of loss or damage until the FRU is received by Veraz and shall bear
the cost of transportation charges for shipment to Veraz of the FRU to be repaired or replaced.
For

-22-

 

return shipments from Veraz to the Customer, Veraz shall bear the risk of loss or damage during
transit and shall prepay and bear the cost of transportation charges for shipment of the FRU that
has been repaired or replaced.

If the FRU returned to Veraz is not defective, Veraz shall promptly advise the Customer in writing
of this determination, and in such cases, Veraz shall return the FRU to the Customer at Customer’s
expense and risk in its “as received” condition.

If the FRU returned is not covered by Basic Support Services hereunder, Veraz shall promptly advice
Customer in writing of this determination; and in such cases, Veraz shall repair the FRU only if so
instructed by Customer in writing and charge Customer for labor, parts and shipping in accordance
with Veraz ‘s then current rates.

Any FRU repaired or replaced by Veraz shall either be provided with (i) Veraz’s standard warranty,
commencing with the date upon which the repaired or replaced FRU is returned to the Customer, for a
period of ninety (90) days or, (ii) the existing warranty for the related Hardware, if such
warranty period is longer.

     2.3. Embedded Software Fixes.

     Veraz will use commercially reasonable efforts to correct Errors in the embedded Software in
accordance with the procedures indicated in Section 5.3 below.

     2.4. Embedded Software Updates.

     Veraz shall provide Customer with all new Updates and Upgrades of the embedded Software
related to the Hardware. Veraz will use reasonable efforts to notify Customer by email of new
embedded Software Releases and on request Veraz will provide sufficient embedded Software and
programmed parts within thirty (30) business days to carry out the upgrade of the Hardware.
Installation of the embedded Software and programmed parts is not included in this Service.
Hardware upgrades (other than replacement programmed parts) that may be required to support the new
embedded Software Release are not included.

     2.5. Software Fixes.

     In the event Customer notifies Veraz of an Error in the Software, Veraz will use commercially
reasonable efforts to correct Errors in accordance with the procedures indicated in Section 5.3
below.

     2.6. Software Updates.

     Veraz will provide Customer with Updates and Upgrades to the Software. Installation is not
included. Hardware upgrades that may be required to support the new Software Release are not
included. Customer shall not be entitled to Updates or Upgrades to Software features and modules
not otherwise licensed to Customer.

-23-

 

3. ENHANCED SERVICES

     3.1. ActionLine 24X7 Remote Support

     This Enhanced Service extends the ActionLine Remote Support hours to twenty-four (24) hours a
day, seven (7) days a week, including all holidays for the Products (Hardware and/or Software, as
applicable). Customer must purchase Basic Support Services in order to be eligible, to purchase
ActionLine 24X7 Remote Support.

     3.2. Advanced Replacement (Hardware)

     Veraz will ship Hardware parts upon request of Customer prior to receipt of the defective or
faulty Hardware part from Customer within two (2) business days or less from receipt of such
request. On-site support is not included as part of this Service.

4. PREMIUM AND ON- DEMAND SERVICES

     All Premium and On-Demand Support Services selected by Customer shall be as specifically
described in the Customer Order. The purpose of Premium Support Services is to provide on-site
hardware repair and technical support options and such ExpertAssistTM services as network design,
custom integration and testing, network/node staging (if applicable), installation, configuration
management and project management. With respect to On-Demand Support Services, Veraz offers per
incident on-site support services and Veraz’s Preventive Maintenance & Inspection Service, and
recommends Customer’s use of this Service once a year in order to maximize the maintenance level of
the Hardware. In addition, as part of this Service, Veraz’s field engineer will update Customer
engineers on the latest standards and procedures with respect to maintenance and operation of the
Products. Veraz also offers a wide range of training options. Veraz’s training program provides
courses in Veraz’s equipment, voice and data communications, operations and configuration, all
designed to give the best possible expertise to Veraz customers. Courses are provided on a
scheduled basis in our education centers or can be provided at Customer’s location. An enhanced
e-learning program via the web is available in addition to the courses mentioned above.

5. CALL PROCEDURE, RESPONSE AND ESCALATION

     5.1. Service Request

     When Customer contacts Veraz’s ActionLine, Veraz will log a Service Request on Veraz’s call
tracking system and provide Customer with a reference number. The Customer can obtain the status
of the Service Request at any time via Veraz’s Support Information web site or by calling Veraz’s
ActionLine. As part of the Service Request, Customer and Veraz will determine in good faith the
severity of the Service Request based upon the severity levels get forth in Section 4.2 below.
Customer recognizes that email is an inherently unreliable means of communication and that a
Service Request should not be considered recorded with Veraz until a positive acknowledgement with
a reference number is received. Veraz’s Support Information web site can be found at
www.veraznetworks.com. Individual user registration is required to gain access to confidential
Product support information. Registration can be requested online at the web site or via the
ActionLine.

-24-

 

     5.2. Severity Definitions

     Critical - Errors that severely affect service, traffic, billing, and maintenance
capabilities, and require immediate corrective action. Veraz will reclassify a Critical Error as a
Major Error if there is a suitable Workaround with adequate documentation. Critical Errors
include, but are not necessarily limited to:

	•	 	A total system failure that results in loss of all data transmission.
	 
	•	 	Reduction in capacity or traffic handling capability such that the system cannot handle expected loads in accordance
with the Documentation. Capacity refers to the capacity for which the necessary Hardware has been installed and the
Software configured.
	 
	•	 	Severe degradation in capacity or traffic handling capability.
	 
	•	 	Any material toss of safety or emergency capability (i.e. 911 calls).
	 
	•	 	Loss of the system’s ability to perform automatic system reconfiguration pursuant to the Documentation.
	 
	•	 	Inability to restart the system.
	 
	•	 	Loss of protection switching capability.
	 
	•	 	Loss of billing capability.
	 
	•	 	Corruption of billing or system databases that requires service-affecting corrective actions.
	 
	•	 	Loss of access for maintenance or recovery operations.
	 
	•	 	Loss of the system’s ability to provide any required Critical or Major Error notification.

     Major - Errors that cause conditions that seriously affect system operation, maintenance,
and/or administration, and require immediate attention. The urgency is less than for Critical
Errors because of a lesser immediate or impending effect on system performance, customers, and
Customer operation and revenue, Veraz will reclassify a Major Error as a Minor Error if there is a
suitable Workaround with adequate documentation. Major Errors include, but are not necessarily
limited to:

	•	 	Material reduction in any capacity and traffic measurement function.

	•	 	Any material loss of functional visibility and/or diagnostic capability.

	•	 	Repeated degradation of port connections.

	•	 	Prevention of access for routine administrative activity.

	•	 	Degradation of access for maintenance or recovery operations.

	•	 	Degradation of the system’s ability to provide any required Critical Error or Major Error notification.

	•	 	An increase in system-related customer trouble reports.

	•	 	High billing error rates.

	•	 	Corruption of system or billing databases not resulting in service affecting corrective actions.

     Minor - Errors which do not significantly impair the functioning of the system and do not
significantly affect service to customers. These Errors are tolerable during system use.

     Veraz will operate an automatic escalation procedure for all open Service Requests to ensure
that senior management is aware of any problems that require increased attention to meet Service
goals. Cases are escalated according to the following table.

-25-

 

     5.3. Veraz Response and Escalation

     Veraz will use commercially reasonable efforts to (i) correct Errors in accordance with
Response Time, Restore Time, and Permanent Resolution targets, and (ii) provide the resources
required to be allocated by Veraz, set forth in the table in this section below. All times are
targets based on Veraz experience and are subject to ActionLine support hours purchased. Veraz
provides an automatic escalation procedure using the contacts and escalation thresholds set forth
below for all open Service Requests to ensure that appropriate management personnel are aware of
any problems that require increased attention to meet Service Response Time, Restore Time and
Permanent Resolution targets. Response Time, Restore Time, and Permanent Resolution Time for
Hardware issues are subject to Customer having the appropriate spare part on site, or Customer
purchasing On-Site Hardware Repair Premium Service. The escalation process is an automatic
process, triggered by the Severity Level.

	 	 	 	 	 	 	 
	Response Time

	 	< 30 minutes
	 	< 2 hours
	 	<4 hours
	Restore Time

	 	Continuous activity to restore in <48 hours
	 	<3 days
	 	<5 days
	Permanent Resolution

	 	Commercially reasonable efforts to provide within ten
(10) business days
	 	20 business days
	 	Next regularly scheduled
Maintenance Release within 180 days
	Resource Allocation

	 	Management and all appropriate technical resources
	 	Appropriate technical resources
	 	Technical resources as available
	 
	No Initial Response 

L1

Senior Expert

	 	30 min
	 	2 hours
	 	2 hours
	No Initial Response 

L2

Support Manager

	 	1 hour
	 	4 hours
	 	4 hours
	 
	Senior Expert

	 	6 hours
	 	24 hours
	 	30 days
	Support Manager

	 	12 hours
	 	48 hours
	 	60 days
	VP Customer Care

	 	24 hours
	 	72 hours
	 	90 days

6. CUSTOMER RESPONSIBILITIES.

     6.1. Customer will, at no charge to Veraz, provide Veraz with appropriate telephone and remote
access to the Products either through Customer’s network management system(s), or other systems as
required by Veraz to allow for the execution of remote diagnostic procedures, subject only to the
Customers security rules, including remote access to the Software via ISDN BRI (in call-back mode)
or a dedicated circuit.

     6.2. Customer will place all requests for Service to Veraz’s ActionLine by telephone, fax,
email or web site using the contact points for the assigned TAC provided in Section 8 below, unless
otherwise agreed to in writing by Veraz. Service Requests made by the Customer directly to any

-26-

 

other number, person or location are outside the scope of the Support Services provided herein and
may be chargeable at Veraz ‘s current time and materials maintenance service rates.

     6.3. Customer will permit Veraz’s service personnel, agents, and/or subcontractors prompt and
reasonable access to the Products during such hours as may be necessary for the proper
performance of Veraz’s obligation hereunder and shall provide adequate working space, heat,
light, ventilation, a safe work environment, electrical currents and outlets and such other
facilities, as may be reasonably required to perform any on-site Services. Where prior notice for
access is required, Veraz’s Restore Times will be extended accordingly. Customer shall have the
right to have a representative present during any Veraz maintenance activity on Customer’s
premises.

     6.4. Customer will provide Veraz with a list of suitably qualified designated Customer
contacts, up to a maximum of six per eight hour shift, that may contact the Veraz ActionLine.

     6.5. Customer will provide reasonable access to a telephone for use by Veraz’s maintenance
personnel when on Customer’s site. This will be within a reasonable distance of the Products and
will be provided at no charge to Veraz.

     6.6. Customer, when requested by Veraz, agrees to complete diagnostic and test routines
recommended by Veraz or included in the manufacturer’s instructions for any third party hardware or
software, which may assist Veraz in completing remote diagnostic tests of the Products where
appropriate.

     6.7. Customer will ensure that the Software conforms to Veraz’s minimum supported Software
Release revision level requirements and is maintained in accordance with any and all changes to
specifications identified in Veraz’s Software Update and Upgrades service.

     6.8. Customer shall operate the Products in accordance with Veraz’s and/or manufacturers /
suppliers instructions, an applicable, and shall at all times maintain the proper environmental
conditions according to Veraz’s standard site specifications.

     6.9. Customer’s personnel will not attempt any repair or maintenance other than swapping out
FRUs on the Products while they are covered under warranty or under this Service plan with Veraz,
unless agreed to in writing by Veraz.

     6.10. Customer will maintain an adequate level of spares based on Veraz recommendations and/or
Veraz supplied reliability information to meet all Critical service affecting hardware failures
allowing for Veraz’s normal repair and return cycle of 30 business days plus shipping times.
Restore Times shall be subject to the foregoing.

     6.11. Customer will be responsible for the installation of all Software Releases. Error
Corrections and Maintenance Releases provided by Veraz under this Service.

     6.12. Customer agrees to notify Veraz in writing promptly following the discovery of any
Error. Veraz agrees to make available to Customer a list of known terrors and to notify Customer
in writing promptly following the discovery of any Critical Error. Further, upon discovery of an
Error, Customer agrees, if requested by Veraz, to submit to Veraz a list of output and any other
data that

-27-

 

Veraz may reasonably require to reproduce the Error and the operating conditions under
which the Error occurred or was discovered. Such list and data will be deemed Veraz’s Confidential
Information. Veraz will use commercially reasonable efforts to reproduce the Error based on the
information submitted by Customer. If Veraz is unable to reproduce the Error, it will have no
responsibility to meet the timelines set forth in the table below. In such event, Veraz will
diligently
continue to attempt to reproduce such Error, provided that Customer will continue to
reasonably cooperate with Veraz in efforts to reproduce the Error.

     6.13. Customer is responsible for completion of all applicable data back-ups for Control
Switch to include databases and operating systems to ensure that Veraz can restore systems to
normal if trouble conditions occur which require recovery of data.

7. SERVICE EXCLUSIONS.

     Support Services do not include:

	 	o	 	repairs required to correct malfunctions or Errors where the operating environment
is different from that in which the Product was originally installed;
	 
	 	o	 	repairs attributable to or required due to any unauthorized attempt by Customer or
any other party to repair or maintain the Product;
	 
	 	o	 	repaint resulting from the Customer’s attempt to de-install, relocate and install
the Product;
	 
	 	o	 	repairs resulting from casualty, catastrophe, or natural disaster (including
lightning damage), accident, misuse, neglect or negligence of Customer, or causes
external to the Product such as, but not limited to, failed or faulty electrical power
or air conditioning, or any causes other than normal wear and tear from ordinary use;
	 
	 	o	 	repairs for accessories, attachments or any other devices which are not identified
in the applicable Order;
	 
	 	o	 	repairs resulting from unauthorized changes, modifications or alterations or
attachments of or to the Product;
	 
	 	o	 	the furnishing of optional accessories or consumable supplies;
	 
	 	o	 	installation/de-installation services and/or relocation/removal services;
	 
	 	o	 	labor, parts and repairs necessary to restore the Product to food operating
condition when the Product was not under a Veraz warranty or under a Veraz Support
Services agreement immediately prior to this Agreement;
	 
	 	o	 	Services for third party software and/or for Obsolete Software Releases;

-28-

 

	 	o	 	problems in the operation or performance of the Products caused by third party
software or hardware products;
	 
	 	o	 	interaction between the Software or Hardware and operating systems, database
software and other software, when Veraz has not approved such operating system,
database software, and other software for use with the Software or Hardware;
	 
	 	o	 	Customer’s use of the Software or Hardware on non-approved equipment or at locations
other than the Deployment Sites;
	 
	 	o	 	on-site support, which Customer may procure at Veraz’s then-current rates; or
	 
	 	o	 	special services that may be requested by Customer, including, but not limited to:
(a) customization services, such as support for customization of routing plans and
digit analysis; custom system provisioning and configuration; trunk provisioning; $$7
provisioning, and (b) program management, single point of contact for program issues,
cross-vendor program management, formal project planning, issue management, reporting
and trending.

     If Veraz determines that it is necessary to perform Services for a problem caused by any of
the exclusions above (a “Customer-Generated Error”), Veraz will notify Customer thereof as soon as
Veraz is aware of such Customer-Generated Error and, upon Customer’s approval, Veraz will have the
right to perform such services and invoice Customer at Veraz’s then-current published time and
materials rates for all such maintenance and support services performed by Veraz.

8. SUPPORT CONTACT POINTS

Regional Technical Assistance Centers (TACs)

	 	 	 
	Veraz Networks, Ltd 

30 Hasivim St. 

Petah Tikva 49517

Israel
	 	Tel: +972-3-928-7077

Fax: +972-3-926-8999

Service@veraznetworks.com

	 	 	 
	Veraz Networks, Inc. 

926 Rock Ave., Suite 20

San Jose, CA 95131

USA
	 	Tel: +1-1-408-750-9400

Fax: +1-408-750-9471

e-Mail:                    

	 	 	 
	Veraz Networks, Inc. 

1201 West Cypress Creek Road 

Fort Lauderdale, FL 33309

USA
	 	Tel: +1-1-408-750-9400

Fax: +1-408-750-9471

FTL.service@veraznet.com

-29-

 

	 	 	 
	Veraz Network, Ltd. 

ISIS House, Reading Road, 

Chincham, Hampshire 

Basingstoke, United Kingdom
	 	Tel: +44-1256-388111

Fax: +44-1256-388141

UK.service@veraznetworks.com

	 	 	 
	Veraz Network, Ltd 

Espace Velizy “le Nungesser” 13, 

Avenue Morane Saulnier 78140

Velizy, France
	 	Tel: +33-1-34630480

Fax: +33-1-30708066

France.service@veraznetworks.com

	 	 	 
	Veraz Network, Ltd. 

Au 27 D-61440 Oberursel 

Germany
	 	Tel: +49-6171620950

Fax: +49-6171620988

Germany.service@veraznetworks.com

	 	 	 
	Veraz Network, Ltd. 

27th Floor Unit 2702, Antel 2000

Bldg 

121 Valero St. Salcedo Village, 

Makati City, Philippines
	 	Tel: +63-2-8452333

Fax: +63-2-8438222

Philippines.service@veraznetworks.com

	 	 	 
	Veraz Network, Ltd. 

14th Floor, Fuhua Mansion 

No. 8 Chaoyangmenbei Avenue 

Dongcheng District 

Beijing 100027, China
	 	Tel: +86-10-65546800

Fax: +86-10-65546900

China.service@veraznetworks.com

Escalation Contacts

	 	 	 	 	 	 	 
	First Level
	 	Mr. Amir Shemesh
	 	Manager of Customer Service
	 	Voice: +972-3-9268370

Fax: +972-3-9268999

Amir.Shemesh@veraznet works.com
	Second Level
	 	Mr. Yosri Schniedover
	 	VP Customer Care
	 	Voice: +972-3-9266809

	 	 	 	 	 	 	 
	First Level
	 	Mr. Shishir Bommireddi
	 	Senior Director of Engineering and
	 	Voice:                     
	 
	 	 	 	Professional Services
	 	Fax: 1-408-750-9471

shishirb@veraznet.com
	Second Level
	 	Mr. Vijay Natdkami
	 	VP of Engineering and Professional Services
	 	Voice:                    

-30-exv10w5

 

Exhibit 10.5

Tenant Lease Abstract

	 	 	 	 	 
	 

	 	Prepared For:
	 	Starvox Communications, Inc.
	 

	 	Prepared By:
	 	Jim Abarta
	 

	 	Date:
	 	June 27, 2005

	 	 	 	 	 	 	 
	1.	 	Building Address:	 	 2728 Orchard Parkway

San Jose, CA.
	 
	 	 	 	 	 	 
	2.	 	Project Name:	 	Valley Centre
	 
	 	 	 	 	 	 
	3.	 	Lease Type:	 	Triple Net (NNN)
	 
	 	 	 	 	 	 
	4.	 	Lessee:	 	Starvox Communications, Inc.
	 
	 	 	 	 	 	 
	5.	 	State Of Formation:	 	California
	 
	 	 	 	 	 	 
	6.

	 	Guarantor:
	 	N/A	 	 
	 
	 	 	 	 	 	 
	7.	 	Lessor:	 	CarrAmerica Realty Operating Partnership, L.P.
	 
	 	 	 	 	 	 
	8.

	 	Rent Payee:
	 	Address:
	CarrAmerica Realty Partnership, L.P.

t/a Valley Centre

P.O. Box 642922

Pittsburgh, PA. 15264-2922
	 
	 	 	 	 	 	 
	 

	 	Or by wire transfer as follows:
	 	Account Name:
	 	   CarrAmerica Realty Operating

   Partnership, L.P.

   t/a Valley Centre
	 
	 	 	 	 	 	 
	 

	 	 	 	Bank Name:
	 	   PNC Bank
	 
	 	 	 	 	 	 
	 

	 	 	 	Transit Number:
	 	   043-000-096

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	Account Number:
	 	   1004339188
	 
	 	 	 	 	 	 
	 

	 	 	 	Notification:
	 	   Lease Administration

   (CarrAmerica Really Operating
    Partnership, L.P. re
StarVox
    Communications, Inc.)
	 
	 	 	 	 	 	 
	 

	 	 	 	Telephone:
	 	   (408) 544-9660
	 
	 	 	 	 	 	 
	9.

	 	Building/Property Manager:
	 	Address:
	 5201 Great America Parkway,

Suite #360

Santa Clara, CA. 95054
	 
	 	 	 	 	 	 
	 

	 	 	 	Property Manager:
	 	   Mr. Tom Smith
	 

	 	 	 	Phone:
	 	   (408) 544-9660
	 

	 	 	 	Fax:
	 	   (408) 544-9669
	 
	 	 	 	 	 	 
	10.	 	Lease Execution Date:	 	June 30, 2005
	 
	 	 	 	 	 	 
	11.	 	Occupancy Date:	 	July 1, 2005
	 
	 	 	 	 	 	 
	12.	 	Rental Commencement Date:	 	Two (2) months after the commencement date.

Projected to be on or about August 1, 2005.

Commencement date letter to be signed.
	 
	 	 	 	 	 	 
	13.	 	Prorating Method (30/31):	 	On a thirty (30) day basis.
	 
	 	 	 	 	 	 
	14.	 	Lease Expiration Date:	 	On or about September 30, 2010, unless terminated

early by the Landlord.
	 
	 	 	 	 	 	 
	15.	 	Lease Amendments:	 	None.
	 
	 	 	 	 	 	 
	16.	 	Term:	 	 5 Years, 2 Months
	 
	 	 	 	 	 	 
	17.	 	Square Feet Leased:	 	 5,934 square feet
	 
	 	 	 	 	 	 
	18.	 	Lessee’s Proportionate Share	 	 26.37% of the Building.
	 

	 	Of Bldg./Project:	 	 	 	 
	 
	 	 	 	 	 	 
	19.	 	Base Rental Rate Per Square	 	Months           Per Month/PSF           Cost Per Month
	 

	 	Foot:	 	 	 	 

 

 

	 	 	 	 	 	 	 
	29.	 	Sublease/Assignment:	 	Lessor consent required within twenty (20) days

following written notice from Lessee.
	 
	 	 	 	 	 	 
	 	 	 	 	Lessor may disapprove at its discretion.
	 
	 	 	 	 	 	 
	 	 	 	 	Lessor receives 50% of any overage rents after
having the right to deduct reasonable brokerage
fees, legal costs and tenant improvements not to
exceed $4.00 per square foot.
	 
	 	 	 	 	 	 
	 	 	 	 	Lessor has the right to recapture the space.
	 
	 	 	 	 	 	 
	30.	 	Lessee’s Improvements/
Lessor’s Allowance:	 	“Turnkey” improvements with Tenant paying for an
additional $18,729.00.
	 
	 	 	 	 	 	 
	31.	 	Lessor’s TI Supervision Fee:	 	None
	 
	 	 	 	 	 	 
	32.	 	Additional TI’s Available/
Amortization Rate:	 	None
	 
	 	 	 	 	 	 
	33.	 	Permitted Lessee’s Alterations
Limit:	 	$15,000.00 without Landlord’s consent for
non-structural alterations. Please give Landlord
notice so that Landlord can let you know whether
such improvement will have to be removed at the end
of the term.
	 
	 	 	 	 	 	 
	34.	 	Signage:	 	Tenant has the right to install its sign on the
monument on the berm.
	 
	 	 	 	 	 	 
	35.	 	Condition of Premises:	 	Lessor shall deliver the Premises with all operating
systems in good working order for a period of six
(6) months on the HVAC systems and others and nine
(9) months on the roof system.
	 
	 	 	 	 	 	 
	36.	 	Notification Address:	 	Lessor:
	 
	 	 	 	 	 	 
	 	 	 	 	CarrAmerica Realty Operating Partnership, L.P.

1810 Gateway Drive, Suite 150

San Mateo, C A. 94404

Attn: Market Officer
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	CarrAmerica Realty Operating Partnership, L.P.

1850 K Street, N.W., Suite 500

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Washington, D.C. 20006

Attn: Lease Administration
	 
	 	 	 	 	 	 
	 	 	 	 	Lessee:

StarVox Communications, Inc.

2728 Orchard Parkway

San Jose, CA 95134

Attn: VP Finance
	 
	 	 	 	 	 	 
	37.	 	Holdover Provision:	 	150% for the first thirty (30) days and 200%
thereafter.
	 
	 	 	 	 	 	 
	38.	 	After-Hours Hvac:	 	N/A
	 
	 	 	 	 	 	 
	39.	 	Early Termination/
Cancellation Right:	 	Landlord has the right to terminate the Lease by
giving Tenant at least nine (9} months prior written
notice to terminate the lease at any time after the
thirtieth (30th) month of the tease term.
Please see Section 32 of the Lease. Moving
expenses to be paid by the Landlord.
	 
	 	 	 	 	 	 
	40.	 	Renewal Option/
Notice Periods:	 	One (1) option to extend the Term of the Lease for
three (3) years:
	 
	 	 	 	 	 	 
	 	 	 	 	Notice must be given by April 15, 2010.
	 
	 	 	 	 	 	 
	 	 	 	 	Rent: 100% of the then Fair Market Value.
	 
	 	 	 	 	 	 
	 	 	 	 	Lessee must give written notice of its intent no
earlier than 270 days or no later than 180 days
before the end of the lease term.
	 
	 	 	 	 	 	 
	41.	 	Expansion Options:	 	None
	 
	 	 	 	 	 	 
	42.	 	Option To Purchase:	 	N/A
	 
	 	 	 	 	 	 
	43.	 	Other Terms & Conditions:	 	Landlord has the right to terminate the Lease,
please read Section 32 for specifics, per paragraph
39 above.
	 
	 	 	 	 	 	 
	44.	 	Broker:	 	Colliers International, A CALIFORNIA GENERAL

PARTNERSHIP
	 
	 	 	 	 	 	 
	 	 	 	 	Jim Abarta

Sr. Vice Pres./Principal

(925) 227-6228 Direct

(925) 463-2300 Main

(925) 463-0747 Fax

jabam@colliersparrish.com

 

 

****************************

LEASE

VALLEY CENTRE

****************************

Between

STARVOX COMMUNICATIONS, INC.

(Tenant)

and

CARRAMERICA REALTY OPERATING PARTNERSHIP, L.P.

(Landlord)

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	1.	 	 	LEASE AGREEMENT
	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	 	2.	 	 	RENT
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	3.	 	 	PREPARATION
AND CONDITION OF PREMISES: TENANTS POSSESSION: REPAIRS AND MAINTENANCE
	 	 	11	 
	 	 	 	 	 
	 	 	 	 
	 	4.	 	 	SERVICES AND UTILITIES
	 	 	14	 
	 	 	 	 	 
	 	 	 	 
	 	5.	 	 	ALTERATIONS AND REPAIRS
	 	 	14	 
	 	 	 	 	 
	 	 	 	 
	 	6.	 	 	USE OF PREMISES
	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	 	7.	 	 	GOVERNMENTAL REQUIREMENTS AND BUILDING RULES
	 	 	20	 
	 	 	 	 	 
	 	 	 	 
	 	8.	 	 	WAIVER OF CLAIMS; INDEMNIFICATION: INSURANCE
	 	 	21	 
	 	 	 	 	 
	 	 	 	 
	 	9.	 	 	FIRE AND OTHER CASUALTY
	 	 	25	 
	 	 	 	 	 
	 	 	 	 
	 	10.	 	 	EMINENT DOMAIN
	 	 	26	 
	 	 	 	 	 
	 	 	 	 
	 	11.	 	 	RIGHTS RESERVED TO LANDLORD
	 	 	27	 
	 	 	 	 	 
	 	 	 	 
	 	12.	 	 	EVENTS OF DEFAULT
	 	 	28	 
	 	 	 	 	 
	 	 	 	 
	 	13.	 	 	LANDLORD REMEDIES
	 	 	30	 
	 	 	 	 	 
	 	 	 	 
	 	14.	 	 	SURRENDER
	 	 	32	 
	 	 	 	 	 
	 	 	 	 
	 	15.	 	 	HOLDOVER
	 	 	33	 
	 	 	 	 	 
	 	 	 	 
	 	16.	 	 	SUBORDINATION TO GROUND LEASES AND MORTGAGES
	 	 	33	 
	 	 	 	 	 
	 	 	 	 
	 	17.	 	 	ASSIGNMENT AND SUBLEASE
	 	 	34	 
	 	 	 	 	 
	 	 	 	 
	 	18.	 	 	CONVEYANCE BY LANDLORD
	 	 	38	 
	 	 	 	 	 
	 	 	 	 
	 	19.	 	 	ESTOPPEL CERTIFICATE
	 	 	38	 
	 	 	 	 	 
	 	 	 	 
	 	20.	 	 	LEASE DEPOSIT
	 	 	39	 
	 	 	 	 	 
	 	 	 	 
	 	21.	 	 	TENANTS PERSONAL PROPERTY AND FIXTURES
	 	 	40	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	22.	 	 	NOTICES
	 	 	40	 
	 	 	 	 	 
	 	 	 	 
	 	23.	 	 	QUIET POSSESSION
	 	 	41	 
	 	 	 	 	 
	 	 	 	 
	 	24.	 	 	REAL ESTATE BROKERS
	 	 	41	 
	 	 	 	 	 
	 	 	 	 
	 	25.	 	 	MISCELLANEOUS
	 	 	41	 
	 	 	 	 	 
	 	 	 	 
	 	26.	 	 	UNRELATED BUSINESS INCOME
	 	 	45	 
	 	 	 	 	 
	 	 	 	 
	 	27.	 	 	BUILDING RENOVATIONS
	 	 	45	 
	 	 	 	 	 
	 	 	 	 
	 	28.	 	 	HAZARDOUS SUBSTANCES
	 	 	45	 
	 	 	 	 	 
	 	 	 	 
	 	29.	 	 	EXCULPATION
	 	 	48	 
	 	 	 	 	 
	 	 	 	 
	 	30.	 	 	COMMUNICATIONS AND COMPUTER LINES
	 	 	48	 
	 	 	 	 	 
	 	 	 	 
	 	31.	 	 	OPTION TO EXTEND
	 	 	48	 
	 	 	 	 	 
	 	 	 	 
	 	32.	 	 	LANDLORD’S OPTION TO TERMINATE
	 	 	51	 

 

 

LEASE

     THIS LEASE (the “Lease”) is dated as of June 15, 2005 (for reference purposes only)
between CARRAMERICA REALTY OPERATING PARTNERSHIP, L.P., a Delaware limited partnership
(“Landlord”) and the Tenant as named in the Schedule below. The term “Project”
means the two (2) buildings, the land appurtenant thereto (“Land”), and other improvements
located thereon commonly known as “Valley Centre”, located in San Jose, California. The
“Premises” means that portion of the Project leased to Tenant and described in the Schedule
and outlined on Exhibit A. The building in which the Premises are located shall be,
collectively, referred to herein as the “Building”. The following schedule (the
“Schedule”) is an integral part of this Lease. Terms defined in this Schedule shall have
the same meaning throughout the Lease.

SCHEDULE

	 	1.	 	Tenant: STARVOX COMMUNICATIONS, INC., a California corporation
	 
	 	2.	 	Premises: 2728 Orchard Parkway, San Jose, California, as outlined on
Exhibit A attached hereto
	 
	 	3.	 	Building: 2728-2730 Orchard Parkway, San Jose, California
	 
	 	4.	 	Rentable Square Footage of the Premises: Approximately 5,934 rentable square
feet.
	 
	 	5.	 	Tenant’s Proportionate Share: 26.37% based upon a total of 22,500 rentable
square feet in the Building.
	 
	 	6.	 	Lease Deposit: Prepaid Base Rent equal to Six Thousand Two Hundred Thirty and
70/100 Dollars ($6,230.70), Prepaid Additional Rent equal to One Thousand Eight Hundred
Ninety-Eight and 88/100 Dollars ($1,898.88) and Security Deposit equal to Seven
Thousand Twelve and 70/100 Dollars ($7,012.70), totaling $15,142.28.
	 
	 	7.	 	Permitted Use: General office, non-retail sales, research and development, and
other uses ancillary thereto
	 
	 	8.	 	Tenant’s Real Estate Broker for this Lease: Colliers International
	 
	 	9.	 	Landlord’s Real Estate Broker for this Lease: CB Richard Ellis
	 
	 	10.	 	Tenant Improvements, if any: See the Tenant Improvement Agreement attached
hereto as Exhibit C.

-i-

 

	 	11.	 	Commencement Date: The Substantial Completion Date (as defined in the Tenant
Improvement Agreement)
	 
	 	 	 	Target Commencement Date: July 15, 2005
	 
	 	 	 	Rent Commencement Date: The date that is two (2) months after the Commencement Date
	 
	 	12.	 	Term/Termination Date: Subject to Landlord’s option to terminate as set forth
in Section 32, the Term of this Lease shall be for sixty-two (62nd) months
commencing on the Commencement Date and expiring on the calendar day preceding the
sixty-second (62nd) month anniversary of the Commencement Date (the “Termination
Date”); provided, however, that if the Commencement Date shall occur on a date
other than the first day of a calendar month, the Termination Date shall be the last
day of the calendar month in which the sixty-second (62nd) month anniversary of the
Commencement Date occurs.
	 
	 	13.	 	Parking Stalls: Twenty-One (21) unassigned stalls
	 
	 	14.	 	Base Rent:

	 	 	 	 	 	 	 	 	 
	 	 	Monthly	 	Annual
	              Period	 	Base Rent	 	Base Rent
	Months 1 and 2
	 	$	0.00	 	 	 	n/a	 
	Months 3 through 14 
	 	$	6,230.70	 	 	$	74,768.40	 
	Months 15 through 26
	 	$	6,417.62	 	 	$	77,011.45	 
	Months 27 through 38
	 	$	6,610.15	 	 	$	79,321.80	 
	Months 39 through SO
	 	$	6,808.45	 	 	$	81,701.40	 
	Months 51 through 62
	 	$	7,012.70	 	 	$	84,152.40	 

	 	15.	 	Renewal Option: One (1) option to extend for a period of three (3) years

Exhibit A — PLAN OF THE PREMISES

Exhibit B — RULES AND REGULATIONS

Exhibit C — TENANT IMPROVEMENT AGREEMENT

Exhibit D — COMMENCEMENT DATE CONFIRMATION

Exhibit E — ENVIRONMENTAL QUESTIONNAIRE

-ii-

 

     1. LEASE AGREEMENT. On the terms stated in this Lease, Landlord leases the Premises
to Tenant, and Tenant leases the Premises from Landlord, for the Term beginning on the Commencement
Date and ending on the Termination Date unless extended or sooner terminated pursuant to this
Lease.

          1.1 Commencement Date.

               (a) The Commencement Date of this Lease is the date set forth in the Schedule, and Tenant
acknowledges and agrees that if the Substantial Completion Date does not occur on or before the
Target Commencement Date for any reason, then (a) this Lease shall not be void or voidable by
either party, and (b) Landlord shall not be liable to Tenant for any loss or damage resulting
therefrom. Following the Commencement Date, Landlord shall prepare and deliver to Tenant a
Commencement Date Confirmation substantially in the form attached hereto as Exhibit D that
sets forth both the Commencement Date and Termination Date for this Lease. Tenant shall execute
the Commencement Date Confirmation and deliver the executed original of the same to Landlord within
three (3) business days after Tenant’s receipt thereof. Tenant’s failure to timely execute and
return the Commencement Date Confirmation document to Landlord shall be conclusive evidence of
Tenant’s agreement with the information as set forth therein.

               (b) Notwithstanding the provisions of Section 1.1(a) above, if the Commencement Date does not
occur on or before September 1, 2005 (the “Premises Delivery Deadline”), Tenant, as its
sole remedy, shall have the right to cancel this Lease by giving written notice of such
cancellation to Landlord at any time after the Premises Delivery Deadline and prior to the date
Landlord delivers possession of the Premises to Tenant, in which case this Lease shall be cancelled
effective as of the date mat is ten (10) days after Landlord’s receipt of Tenant’s cancellation
notice, unless Landlord delivers possession of the Premises to Tenant within said ten (10) day
period; provided, however, that the Premises Delivery Deadline shall be extended by the number of
days that the Commencement Date is delayed due to any Force Majeure Delay (as defined below) or any
delay in receiving any required permits to construct the Tenant Improvements or any Tenant Delay
(as defined in Section 4 of the Tenant Improvement Agreement). In the event of such cancellation
by Tenant, neither party shall have any obligations to the other under this Lease, except for
obligations arising before such cancellation, and Landlord shall promptly return to Tenant the
Lease Deposit. For purposes of this Lease, the term “Force Majeure Delay” means any delay
attributable to Force Majeure (as defined in Section 12.3 below).

               (c) This Lease shall be a binding contractual obligation effective upon execution and delivery
hereof by Landlord and Tenant (the “Lease Effective Date”), notwithstanding the later
commencement of the Lease Term

          1.2 Termination Date. The Termination Date of this Lease is the date set forth in the
Schedule, subject to Landlord’s option to terminate set forth below in Section 32.

-1-

 

          1.3 Early Occupancy. During the period commencing on the Lease Effective Date and
ending on the Commencement Date (the “Early Occupancy Period”), Tenant shall, upon
reasonable prior notice to Landlord, be permitted to enter the Premises for the purpose of
constructing improvements specific to Tenant’s use, installation and hook-up of Tenant’s equipment,
and/or conducting business in the Premises, provided that (a) Tenant’s early entry does not
interfere with Landlord’s performance of the Tenant Improvements, (b) prior to Tenant’s entry in
the Premises, Tenant shall furnish to Landlord certificates of insurance satisfactory to Landlord
evidencing Tenant’s compliance with the requirements of Section 8.3 below, and (c) Tenant’s work
during the Early Occupancy Period shall comply with the requirements of Section 5 below. Tenant’s
occupancy of the Premises during the Early Occupancy Period shall be subject to all of the terms,
covenants and conditions of this Lease, except that Landlord agrees that Tenant’s obligation to pay
Base Rent during the Early Occupancy Period shall be waived. Tenant shall pay in advance, and on
or before the first day of each calendar month thereafter until the Commencement Date, Operating
Cost Share Rent and Tax Share Rent payable by Tenant based on Landlord’s prior estimates thereof
pursuant to Section 2.2(a) below, if any, and otherwise in accordance with Section 2.1 below during
the Early Occupancy Period.

     2. RENT.

          2.1 Types of Rent. Tenant shall pay the following Rent in the form of a check to
Landlord at the following address:

CarrAmerica Realty Operating Partnership, L.P.

t/a Valley Centre

P.O. Box 642922

Pittsburgh, PA 15264-2922

or by wire transfer as follows:

	 	 	 	 	 
	 

	 	Account Name:
	 	CarrAmerica Realty Operating Partnership, L.P.

t/a Valley Centre
	 

	 	Bank Name:
	 	PNC Bank
	 

	 	Transit Number:
	 	 043-000-096
	 

	 	Account Number:
	 	 1004339188
	 

	 	Notification:
	 	Lease Administration (Can-America Realty
 Operating
Partnership, L.P. re StarVox
 Communications, Inc.)
	 

	 	Telephone:
	 	 (408) 544-9660

or in such other manner as Landlord may notify Tenant.

-2-

 

               (a) Base Rent in monthly installments in advance, beginning on the Rent Commencement
Date and thereafter on or before the first day of each month of the Term, in the amount set forth
on the Schedule; provided, however, that, upon Tenant’s execution and delivery of this Lease to
Landlord, Tenant shall pay to Landlord the Prepaid Base Rent set forth in Item 6 of the Schedule,
which shall be applied to the first monthly installment of Base Rent payable by Tenant following
the Rent Commencement Date. If, however, the Rent Commencement Date occurs on a day other than the
first day of a calendar month, then (a) the Prepaid Base Rent shall be applied to the Base Rent for
the partial month in which the Rent Commencement Date occurs and (b) the Prorated First Base Rent
Payment (as defined below) shall be payable by Tenant on or before the first full calendar month
following the Rent Commencement Date. The “Prorated First Base Rent Payment” means the
remaining amount of Base Rent payable by Tenant for the first full calendar month following the
Rent Commencement Date, after the Prepaid Base Rent is applied as provided above. All such
prorations shall be made on the basis of the actual number of days in the applicable month.

               (b) Beginning on the Lease Effective Date, Operating Cost Share Rent equal to (i)
Tenant’s Proportionate Share (as set forth in the Schedule) of Operating Costs for the applicable
Fiscal Year (as defined in Section 2.3(e) below), plus (ii) management fees equal to three percent
(3%) of the total Rent payable under this Lease for the applicable Fiscal Year, paid monthly in
advance in an estimated amount. The definition of Operating Costs and the method for billing and
payment of Operating Cost Share Rent are set forth in Sections 2.2, 2.3 and 2.4.

               (c) Beginning on the Lease Effective Date, Tax Share Rent equal to Tenant’s
Proportionate Share of Taxes for the applicable Fiscal Year, paid monthly in advance in an
estimated amount. A definition of Taxes and the method for billing and payment of Tax Share Rent
are set forth in Sections 2.2, 2.3 and 2.4.

     Upon Tenant’s execution and delivery of this Lease to Landlord, Tenant shall pay to Landlord
the Prepaid Additional Rent set forth in Item 6 of the Schedule, which shall be applied to the
first monthly installment of Operating Cost Share Rent and Tax Share Rent payable by Tenant during
the Early Occupancy Period; provided, however, that if the Lease Effective Date is a day other than
the first day of a calendar month, then (a) the Prepaid Additional Rent shall be applied to the
Operating Cost Share Rent and Tax Share Rent payable by Tenant for the partial month in which the
Lease Effective Date occurs, and the next succeeding calendar month and (b) the Prorated First
Additional Rent Payment (as defined below) shall be payable by Tenant on or before the first
full calendar month following the Lease Effective Date. The “Prorated First Additional Rent
Payment” means the remaining amount of Operating Cost Share Rent and Tax Share Rent payable by
Tenant for the first full calendar month following the Lease Effective Date, after the Prepaid
Additional Rent is applied as provided above. All such prorations shall be made on the basis of
the actual number of days in the applicable month.

-3-

 

     As used in this Lease, the term “Rent” means Base Rent, Operating Cost Share Rent, Tax
Share Rent and all other costs, expenses, liabilities, and amounts which Tenant is required to pay
under this Lease (“Additional Rent”), including any interest for late payment Tenant’s
agreement to pay Rent is an independent covenant, with no right of setoff, deduction, notice,
demand or counterclaim of any kind.

          2.2 Payment of Operating Cost Share Rent and Tax Share Rent.

               (a) Payment of Estimated Operating Cost Share Rent and Tax Share Rent.

                    (i) Before the Lease Effective Date and on or before April 1 of each succeeding Fiscal Year,
or as soon as reasonably possible thereafter, Landlord shall give Tenant notice of Landlord’s
estimate of the payments to be made pursuant to Sections 2.1(b) and 2.1(c) above for such Fiscal
Year. Landlord may revise these estimates by written notice to Tenant whenever it obtains more
accurate information, such as the final real estate tax assessment or tax rate for the Project, in
which event subsequent monthly payments by Tenant for such Fiscal Year shall be based upon such
revised estimate.

                    (ii) Within ten (10) days after receiving Landlord’s notice regarding the original or revised
estimate of the monthly payments to be made pursuant to Sections 21(b) and 21(c) above for a
particular Fiscal Year, Tenant shall pay Landlord an amount equal to the product of such estimated
monthly payments (as set forth in Landlord’s notice), multiplied by the number of months that have
elapsed in the applicable Fiscal Year to the date of such payment including the current month,
minus any payments on account thereof previously made by Tenant for the months elapsed. On the
first day of each month thereafter, Tenant shall pay Landlord the estimated monthly payments as set
forth in Land lord’s most recent notice, until a new estimate becomes applicable.

               (b) Correction of Operating Cost Share Rent and Tax Share Rent. Within one hundred
fifty (150) days after the close of each Fiscal Year or as soon after such ISO-day period as
practicable, Landlord shall deliver to Tenant a statement of (i) Operating Costs and Taxes for such
Fiscal Year, and (ii) the payments made by Tenant under Section 22(a) above for such Fiscal Year
(the “Annual Expense Statement”). If, on the basis of any Annual Expense Statement, Tenant
owes
an amount that is less than the estimated payments previously made by Tenant for the
applicable Fiscal Year, Landlord, at its election, shall either refund the amount of the
overpayment to Tenant within thirty (30) days after delivery of the Annual Expense Statement to
Tenant, or, if this Lease is still in effect, credit such excess against Tenant’s subsequent
obligations to pay Operating Costs and Taxes. If, on the basis of any Annual Expense Statement,
Tenant owes an amount that is more than the estimated payments previously made by Tenant for the
applicable Fiscal Year, Tenant shall pay me deficiency to Landlord within twenty (20) days after
Landlord’s delivery of such Annual Expense Statement to Tenant. The obligations of Landlord and
Tenant under this Section to

-4-

 

promptly refund any overpayment or pay any deficiency, as appropriate,
shall survive the expiration or earlier termination of this Lease.

          2.3 Definitions.

               (a) Included Operating Costs.

                    (i) “Operating Costs” means any expenses, costs and disbursements of any kind other
than Taxes, paid or incurred by Landlord in connection with the ownership, management, maintenance,
operation, repair or replacement of the Project or any part thereof, and of the personal property,
trade fixtures, machinery, equipment, systems and apparatus used in connection therewith,
including, without limitation, (1) all costs to operate, maintain, repair, replace, supervise,
insure, and administer the common areas of the Project, including, without limitation, all costs of
resurfacing and restriping the parking areas of the Project; (2) all costs and expenses paid or
incurred by Landlord in connection with the obtaining of insurance on the Premises, the Building
and/or the Project or any part thereof or interest therein, and any deductibles paid under policies
of any such insurance; (3) except for costs and expenses which are the sole responsibility of
Tenant pursuant to Section 3.3(b) below, all costs paid or incurred by Landlord to perform
Landlord’s Repair Obligations (as defined in pursuant to Section 3.3(b) below), (4) the cost of
providing those services required to be furnished by Landlord under this Lease, and (5) the cost of
all electricity, water, gas, sewers, oil and other utilities (collectively, “Utilities”),
including any surcharges imposed, serving the Project or any part thereof (but excluding the cost
of Utilities directly billed to Tenant or other tenants in the Project), and any amounts, taxes,
charges, surcharges, assessments or impositions levied, assessed or imposed upon the Project or any
part thereof, or upon Tenant’s use and occupancy thereof, as a result of any rationing of Utilities
services or restriction on the use of Utilities affecting the Project or any part thereof. Any
Operating Costs that constitute capital expenditures (collectively, “Included Capital
Items”) shall be amortized by Landlord, with interest, over the estimated useful life of such
item, and such amortized costs shall be included in Operating Costs only for that portion of the
useful life of the Included Capital Item which falls within the Term, unless the cost of the
Included Capital Item is less than Ten Thousand Dollars ($10,000) in which case it shall be
expensed in the year in which it was incurred; provided, however, that Landlord shall not be
entitled to expense any Included Capital Item exclusively serving or
relating only to the Premises unless the cost of such Included Capital Item is less than Five
Thousand Dollars ($5,000).

                    (ii) If the Project contains more than one building, then Operating Costs shall include (1)
all Operating Costs fairly allocable to the Building, and (2) a proportionate share (based on the
gross rentable area of the Building as a percentage of the gross rentable area of all of the
buildings in the Project) of all Operating Costs which relate to the Project in general and are not
fairly allocable to any one building in the Project In addition, if the Building is occupied by
more than one tenant, then, with respect to any costs and expenses incurred by Landlord to
maintain,

-5-

 

repair or replace Systems or related equipment mat exclusively serve the Premises,
Tenant’s Proportionate Share shall be deemed to be one hundred percent (100%).

                    (iii) If the Project is not fully occupied during any portion of any Fiscal Year, Landlord may
adjust (an “Equitable Adjustment”) Operating Costs to equal what would have been incurred
by Landlord had the Project been fully occupied. This Equitable Adjustment shall apply only to
Operating Costs which are variable and therefore increase as occupancy of the Project increases.
Landlord may incorporate the Equitable Adjustment in its estimates of Operating Costs.

                    (iv) If any tenant of the Project contracts directly with Landlord or a third party for any
Utilities or services for which Tenant pays Landlord pursuant to Section 2.1(b) above, the total
costs of such Utilities or services for the Project shall be “grossed up” to reflect what those
costs would have been had such tenant(s) not directly contracted for such Utilities or services.

               (b) Excluded Operating Costs. Operating Costs shall not include:

                    (i) costs of installing leasehold improvements for tenants or occupants or prospective tenants
or occupants of the Project;

                    (ii) costs of capital expenditures to correct violations of the ADA existing in the Project as
of the date of this Lease based on the current interpretation of the ADA by applicable governmental
authority(ies) as of the date of this Lease (it being understood that all other costs to bring the
Project into compliance with the ADA shall be Operating Costs, except for ADA compliance costs that
are the responsibility of Tenant pursuant to Sections 7.1 and 7.2 below);

                    (iii) the cost of abatement or removal of Hazardous Substances in, on, or about the Project;
provided, however, that (a) the costs of routine monitoring of and testing for Hazardous Substances
in, on, or about the Project, and (b) costs incurred in the cleanup or remediation of de minimis
amounts of Hazardous Substances customarily used in similar projects or used to operate motor
vehicles and customarily found in parking facilities shall be included as Operating Costs;

                    (iv) interest and principal payments on mortgages or any other debt costs (except as provided
in Section 2.3(a) above with regard to Included Capital Items), or rental payments on any ground
lease of the Project;

                    (v) real estate brokers’ leasing commissions;

                    (vi) legal fees, space planner fees, marketing costs and advertising expenses incurred with
regard to leasing the Project or portions thereof;

-6-

 

                    (vii) any cost or expenditure for which Landlord is reimbursed, by insurance proceeds or
otherwise, except by Operating Cost Share Rent;

                    (viii) the cost of any service furnished to any tenant of the Project which Landlord does not
make available to Tenant;

                    (ix) depreciation (except on any Included Capital Items);

                    (x) legal and auditing fees incurred for the benefit of Landlord such as collecting delinquent
rents, preparing tax returns and other financial statements, and audits other than those incurred
in connection with the preparation of reports required pursuant to Section 2.2 above;

                    (xi) the wages of any employee for services not related directly to the management,
maintenance, operation and repair of the Project;

                    (xii) fines, penalties and interest incurred by Landlord for late payment by Landlord or
violations of law;

                    (xiii) new utility tap-in fees for the Project;

                    (xiv) costs incurred to finance or refinance the Project;

                    (xv) costs and expenses for the replacement of any item, material, labor or service at the
Project covered under a warranty;

                    (xvi) the cost of acquiring any art work, including, without limitation, any statues or
paintings or electronic artwork or advertising, to the extent the same are materially in excess of
those charged as Operating Costs by owners of comparable buildings; and

                    (xvii) franchise, excise, rent, capital, stock, succession, transfer, gift, estate,
inheritance or income taxes imposed upon Landlord, except to the extent imposed in lieu of all or
any part of Taxes.

               (c) Taxes.

                    (i) “Taxes” means any and all taxes, assessments and charges of any kind, general or
special, ordinary a extraordinary, levied against the Project, which Landlord shall pay or become
obligated to pay in connection with the ownership, leasing, renting, management, use, occupancy,
control or operation of the Project or of the personal property, fixtures, machinery, equipment,
systems and apparatus used in connection therewith. Taxes shall include real estate taxes,
personal property taxes, sewer rents, water rents, special or general assessments, transit taxes,
ad valorem taxes, and any tax levied on the rents hereunder or me interest

-7-

 

of Landlord under this
Lease (me “Rent Tax”). Taxes shall also include all fees and other costs and expenses paid
by Landlord in reviewing any Taxes and in seeking a refund or reduction of any Taxes, whether or
not the Landlord is ultimately successful. Taxes shall also include any assessments or fees paid
to any business park owners association, or similar entity, which are imposed against the Project
pursuant to any Covenants, Conditions and Restrictions “CC&R’s”) recorded against the
Project and any installments of principal and interest required to pay any existing or future
general or special assessments for public improvements, services or benefits, and any increases
resulting from reassessments imposed in connection with any change in ownership or new
construction.

                    (ii) If the Project contains more than one building, then Taxes shall include (1) all Taxes
fairly allocable to the Building, and (2) a proportionate share (based on the gross rentable area
of the Building as a percentage of the gross rentable area of all of the buildings in the Project)
of all Taxes which relate to the Project in general and are not fairly allocable to any one
building in the Project.

                    (iii) For any year, the amount to be included in Taxes (1) from taxes or assessments payable
in installments, shall be the amount of the installments (with any interest) due and payable during
such year, and (2) from all other Taxes, shall at Landlord’s election be the amount accrued,
assessed, or otherwise imposed for such year or the amount due and payable in such year. If Taxes
for any period during the Term are increased after payment thereof for any reason, including,
without limitation, error or reassessment by applicable governmental or municipal authorities, and
such increase results in Tenant having underpaid Tax Share Rent hereunder, men Tenant shall pay to
Landlord, within thirty (30) days after demand, the amount of such underpayment. Similarly, if
Taxes for any period during the Term are decreased after payment thereof for any reason, and such
decrease results in Tenant having overpaid Tax Share Rent hereunder, then Landlord shall return to
Tenant the amount of such overpayment within thirty (30) days after Landlord’s receipt of such
overpayment. The obligations of Landlord and Tenant under this Section to promptly refund any
overpayment or pay any deficiency, as appropriate, shall survive the expiration or earlier
termination of this Lease. Taxes shall not include any net income (except Rent Tax), capital,
stock, succession, transfer, franchise, gift, estate or inheritance tax, except to the extent that
such tax shall be imposed in lieu of any portion of Taxes.

                    (iv) Notwithstanding anything to the contrary set forth in this Lease, Tenant shall reimburse
Landlord upon demand for any and all taxes payable by Landlord (other than net income taxes)
whether or not now customary or within the contemplation of the parties hereto: (1) imposed upon,
measured by or reasonably attributable to the cost or value of Tenant’s equipment, furniture, trade
fixtures and other personal property located in the Premises or by the cost or value of any
leasehold improvements made in or to the Premises by or for Tenant, other than Building-standard
improvements made by Landlord, if any, regardless of whether title to such improvements shall be in
Tenant or Landlord; (2) imposed upon or measured by the Base Rent payable hereunder, including,
without limitation, any gross income tax or excise tax levied by the

-8-

 

city or county in which the
Project is located, the federal government or any other governmental body with respect to the
receipt of such rental; (3) imposed upon or with respect to the possession, leasing, operation,
management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises or any
portion thereof; or (4) imposed upon this transaction or any document to which Tenant is a party
creating or transferring an interest or an estate in the Premises.

               (d) Intentionally Omitted.

               (e) Fiscal Year. “Fiscal Year” means each calendar year during which any
portion of the Term or the Early Occupancy Period occurs (e.g., the first Fiscal Year shall
be the calendar year during which the Early Occupancy Period commences).

          2.4 Computation of Base Rent and Rent Adjustments.

               (a) Prorations. If (i) the Commencement Date is a date other man January 1, (ii) the
Termination Date is a date other than December 31, (iii) this Lease terminates early, or (iv) the
size of the Premises increases or decreases, then in each such event, the Base Rent, the Operating
Cost Share Rent and Tax Share Rent shall be equitably adjusted to reflect such event on a basis
determined by Landlord to be consistent with the principles underlying the provisions of this
Section 2.

               (b) Interest Rate. Any sum due from Tenant to Landlord not paid .when due shall bear
interest from the date due until paid at the lesser of twelve percent (12%) per annum or the
maximum rate permitted by law (the “Interest Rate”).

               (c) Rent Adjustments. The square footage of the Premises and the Building set forth
in the Schedule are deemed to be the actual square footage thereof, provided that the rentable
square footage of the Premises and the Building may subsequently change after the date of this
Lease commensurate with any modifications to the Building by Landlord, in which event Tenant’s
Proportionate Share shall change accordingly. If any Operating Cost paid in one Fiscal
Year relates to more than one Fiscal Year, Landlord may proportionately allocate such
Operating Cost among the related Fiscal Years.

               (d) Books and Records. Landlord shall maintain books and records reflecting the
Operating Costs and Taxes in accordance with sound accounting and management practices. Tenant and
a certified public accountant employed by a certified public accounting firm reasonably acceptable
to Landlord and working on a non-contingency fee basis shall have the right to inspect Landlord’s
records at Landlord’s applicable local office or other location designated by Landlord upon at
least seventy-two (72) hours’ prior notice during normal business hours during the ninety (90) days
following Landlord’s delivery of the Annual Expense Statement to Tenant. The results of any such
inspection shall be kept strictly confidential by Tenant and its agents, and Tenant and its
certified public accountant must agree, in their contract for such services, to such

-9-

 

confidentiality restrictions and shall specifically agree that the results shall not be made
available to any other tenant of the Project (and in connection with the foregoing, prior to
exercising its rights hereunder, Tenant and its agents shall sign a confidentiality agreement
acceptable to Landlord). Unless Tenant sends to Landlord any written exception to an Annual
Expense Statement within said ninety (90) day period, such Annual Expense Statement shall be deemed
final and accepted by Tenant and Tenant waives any other rights pursuant to applicable law to
inspect Landlord’s books and records and/or to contest the amount of Operating Costs and/or Taxes
due hereunder. Tenant shall pay the amount shown on any Annual Expense Statement in the manner
prescribed in this Lease, whether or not Tenant takes any such written exception, without any
prejudice to such exception. If Tenant makes a timely exception, Landlord shall cause an
independent certified public accountant to issue a final and conclusive resolution of Tenant’s
exception. Tenant shall pay the cost of such certification unless Landlord’s original
determination of annual Operating Costs and Taxes overstated the amounts thereof, in the aggregate,
by more than five percent (5%).

               (e) Miscellaneous. So long as Tenant is in default of any obligation under this
Lease, Tenant shall not be entitled to any refund of any amount from Landlord. If this Lease is
terminated for any reason prior to the annual determination of Operating Cost Share Rent or Tax
Share Rent, either party shall pay the full amount due to the other within fifteen (15) days after
Landlord’s notice to Tenant of the amount when it is determined. Landlord may commingle any
payments made with respect to Operating Cost Share Rent and Tax Share Rent, without payment of
interest.

          2.5 Additional Rent Upon Default by Tenant. Landlord and Tenant acknowledge that to
induce Tenant to enter into this Lease, and in consideration of Tenant’s agreement to perform all
of the terms, covenants and conditions to be performed by Tenant under this Lease, as and when
performance is due during the Term, Landlord has incurred (or will incur) significant costs,
including, without limitation, the following: (a) expenditures incurred in connection with the
performance of Landlord’s Work, (b) commissions to Landlord’s and/or Tenant’s real estate broker,
(c) attorneys’ fees and related costs incurred and/or
paid by Landlord in connection with the negotiation and preparation of this Lease, and/or (d)
the rent abatement granted to Tenant during the Early Occupancy Period and for the first two (2)
months of the Lease Term described above (collectively, the “Inducements”). Landlord and
Tenant further acknowledge that Landlord would not have granted the Inducements to Tenant but for
Tenant’s agreement to perform all of the terms, covenants, conditions and agreements to be
performed by it under this Lease for the entire Term, and that Landlord’s agreement to incur such
expenditures and grant such concessions is, and shall remain, conditioned upon Tenant’s faithful
performance of all of the terms, covenants, conditions and agreements to-be performed by Tenant
under this Lease for the entire Term. Accordingly, if an Event of Default by Tenant shall occur
hereunder, Landlord shall be relieved of any unfulfilled obligation to grant Inducements hereunder,
or to incur further expenses in connection therewith, and Tenant shall pay, as liquidated damages
for Landlord’s granting the Inducements and not as a penalty, within ten (10) days after the
occurrence of the Event of Default, as Additional Rent, the amount of those Inducements incurred or
granted prior to the date of the Event of Default the “Pre-

-10-

 

Default Inducements”). Landlord
may or, at Tenant’s request, shall, after the occurrence of an Event of Default, forward a
statement to Tenant setting forth the amount of the Pre-Default Inducements, but the failure to
deliver such a statement shall not be or be deemed to be a waiver of the right to collect the
Pre-Default Inducements or to extend the date upon which such amount shall be due and payable.
Notwithstanding the foregoing, Landlord agrees that it will seek to enforce its right to recover
Pre-Default Inducements only in connection with a bankruptcy of Tenant where this Lease is rejected
or deemed rejected under Section 362 of the Bankruptcy Code.

     3. PREPARATION AND CONDITION OF PREMISES: TENANTS POSSESSION: REPAIRS AND MAINTENANCE.

          3.1 Condition of Premises. Except for Landlord’s Work (as defined in the Tenant
Improvement Agreement attached hereto as Exhibit C). Landlord is leasing the Premises to
Tenant “as is”, without any obligation to alter, remodel, improve, repair or decorate any part of
the Premises and without any express or implied representations or warranties of any kind,
including, without limitation, any representation or warranty regarding the condition of the
Premises, the Building or the Project or the suitability of any of the foregoing for the conduct of
Tenant’s business, except that Landlord shall deliver the Building Systems serving the Premises in
good working condition (and with the roof of the Building in watertight condition) and except that
Landlord shall be responsible for the repair of any latent defects in the Premises of which Tenant
gives Landlord written notice one hundred eighty (180) days after the Substantial Completion Date.
If it is determined that the foregoing representation was untrue as of the Commencement Date,
Landlord shall not be liable to Tenant for any damages, but as Tenant’s sole remedy, Landlord, at
no cost to Tenant, shall perform such work or take such other action as may be necessary to place
the Building Systems in good working condition and place the roof of the Building in watertight
condition. In addition, Landlord, at no cost to Tenant, shall repair
(a) any defects in the Building Systems of which Tenant gives Landlord written notice within
six (6) months after the Commencement Date, and (b) any defects in the roof of the Building that
renders the roof not watertight of which Tenant gives Landlord written notice within nine (9)
months after the Commencement Date. Further, upon request by Tenant following one hundred eighty
(180) days after the Substantial Completion Date, Landlord shall assign all warranties relating to
the Tenant Improvements to Tenant

          3.2 Tenant’s Possession. Tenant’s taking possession of any portion of the Premises
shall be conclusive evidence that the Premises were in good order, repair and condition, subject to
any latent defects of which Tenant gives Landlord written notice within one hundred eighty (180)
days after the Substantial Completion Date.

          3.3 Repairs and Maintenance.

-11-

 

               (a) Tenant’s Obligations.

                    (i) Except to the extent expressly Landlord’s obligation under Section 3.3(b) below, Tenant
shall, throughout the Term at its sole cost and expense, (1) keep and maintain the Premises in good
order and condition, and repair and replace every part thereof (“Tenant’s Repair
Obligations”), including, without limitation, the following: (A) glass, windows, window frames,
window casements (including the repairing, resealing, cleaning and replacing of both interior and
exterior windows) and skylights; (B) interior and exterior doors, door frames and door closers; (C)
interior lighting (including, without limitation, light bulbs and ballasts); (D) the Building
Systems (as defined in Section 3.3(b) below), or portions of the Building Systems, that exclusively
serve the Premises, including, without limitation, any specialty or supplemental Building Systems
installed by or for Tenant and all heating, ventilating and air conditioning (“HVAC”)
systems and equipment and all electrical facilities and equipment, including lighting fixtures,
lamps, fans and any exhaust equipment and systems, electrical motors and all other appliances and
equipment of every kind and nature located in, upon or about the Premises; (E) all communications
systems serving the Premises; (F) all of Tenant’s security systems in or about or serving the
Premises; (G) Tenant’s signage; and (H) interior demising walls and partitions (including painting
and wallcoverings), equipment, floors, and any roll-up doors, ramps and dock equipment, (2) furnish
all expendables, including light bulbs, paper goods and soaps, used in the Premises, and (3) to the
extent that Landlord notifies Tenant in writing of its intention to no longer arrange for such
monitoring, cause the fire alarm systems serving the Premises to be monitored by a monitoring or
protective services firm approved by Landlord in writing.

                    (ii) Tenant shall also be responsible for all pest control within the Premises, and for all
trash removal and disposal from the Premises. With respect to any HVAC systems and equipment
exclusively serving the Premises, Tenant shall obtain HVAC systems preventive maintenance contracts
with quarterly service in accordance with manufacturer recommendations, which shall be subject to
the reasonable prior written approval of Landlord and paid for by Tenant, and which shall provide
for and include replacement of filters, oiling and lubricating of machinery, parts replacement,
adjustment of drive belts, oil changes and other preventive maintenance, including annual
maintenance of duct work, interior unit drains and caulking of sheet metal, and recaulking of jacks
and vents on an annual basis. Notwithstanding the preceding sentence, Landlord, at no cost to
Tenant, shall repair any defects in the HVAC system of which Tenant gives Landlord written notice
within six (6) months after the Commencement Date as provided in Section 3.1 above, and thereafter,
Tenant shall have the benefit of all warranties available to Landlord regarding the HVAC systems
and equipment.

                    (iii) Tenant’s repair, maintenance and replacement obligations shall be performed under the
supervision and subject to the prior approval of Landlord, and within any reasonable period of time
specified by Landlord; provided, however, that (1) with respect to the Building Systems that
exclusively serve the Premises, Landlord may elect to perform all or some of the foregoing
maintenance, repairs and replacement itself, at Tenant’s expense, and (2) if Tenant

-12-

 

fails to
perform Tenant’s Repair Obligations within ten (10) days after notice from Landlord (except in an
emergency, in which case no notice shall be required), Landlord may immediately perform any such
work at Tenants expense plus an administrative fee equal to 10% of the cost of such work. Tenant
shall pay to Landlord all costs and expenses incurred by Landlord and required to be paid by Tenant
under this Section 3.3(a) within ten (10) business days after receipt of an invoice therefor.

               (b) Landlord’s Obligations.

                    (i) Subject to the provisions of Sections 3.1(a), 9 and 10 hereof, Landlord shall maintain,
repair and replace the following items (“Landlord’s Repair Obligations”): (1) the
non-structural portions of the roof of the Building, including the roof coverings (provided that
Tenant installs no additional air conditioning or other equipment on the roof that damages the roof
coverings, in which event Tenant shall pay all costs resulting from the presence of such additional
equipment); (2) the HVAC, plumbing, sewer, drainage, electrical, fire protection, elevator,
escalator, life safety and security systems and equipment and other mechanical, electrical and
communications systems and equipment (collectively, the “Building Systems”) serving the
Premises, the Building and/or the Project, excluding any specialty or supplemental Building Systems
installed by or for Tenant and also excluding the Building Systems (or portions of the Building
Systems) that exclusively serve the Premises; and (3) the parking areas of the Project, pavement,
landscaping, sprinkler systems, sidewalks, driveways, curbs, and lighting systems in the common
areas of the Project Landlord’s Repair Obligations also includes the routine repair and maintenance
of the load bearing and exterior walls of the Building, including, without limitation, any
painting, sealing, patching and waterproofing of such walls.

                    (ii) Subject to the provisions of Sections 3.1(a), 9 and 10 hereof, Landlord, at its own cost
and expense, agrees to repair, maintain and replace (to the extent necessary, in Landlord’s
reasonable judgment), the structural portions of the roof (specifically excluding the roof
coverings), the foundation, the footings, the floor slab, and the load bearing walls and exterior
walls of the Building (excluding any glass and any routine maintenance, including, without
limitation, any painting, sealing, patching and waterproofing of such walls); provided, however,
that subject to the provisions of Section 8.6 below, any damage arising from the acts of Tenant or
any Tenant Parties (as defined in Section 8.2(a) below) shall be repaired by Landlord at Tenant’s
sole expense, and Tenant shall pay to Landlord all costs and expenses of any such repair, plus an
administrative fee equal to 10% of the cost of such repair, within ten (10) days after receipt of
an invoice therefor. Landlord may, but shall not be required to, enter the Premises at all
reasonable times and after reasonable prior notice (except in an emergency, in which case no notice
shall be required) to make such repairs, alterations, improvements or additions to the Premises or
to the Building or to any equipment located in the Building as landlord shall desire or deem
necessary or as Landlord may be required to do by governmental or quasi-governmental authority or
court order or decree. The cost of any repairs made by Landlord on account of Tenant’s default, or
on account of the misuse or neglect by Tenant or any Tenant Parties anywhere in the Project, shall
constitute Additional Rent payable by Tenant within ten (10) business days after receipt of an
invoice therefor.

-13-

 

As a condition precedent to all of Landlord’s repair and maintenance obligations
under this Lease, Tenant must have notified Landlord of the need of such repairs or maintenance.

                    (iii) Tenant hereby waives any and all rights under and benefits of subsection 1 of Section
1932 and Sections 1941 and 1942 of the California Civil Code and any similar or successor law,
statute or ordinance now or hereafter in effect regarding Tenant’s right to make repairs and deduct
the cost of such repairs from the Rent due under this Lease.

     4. SERVICES AND UTILITIES. Tenant shall promptly pay, as the same become due, all
charges for water, gas, electricity, telephone, sewer service, waste pick-up and any other
utilities, materials and services furnished directly to or used by Tenant on or about the Premises
during the Term, including, without limitation, (a) meter, use and/or connection fees, hook-up
fees, or standby fees, and (b) penalties for discontinued interrupted service. If any utility
service is not separately metered to the Premises, then Tenant shall pay its pro rata share of the
cost of such utility service with all others served by the service not separately metered.
However, (i) if Landlord reasonably determines that Tenant is using a disproportionate amount of
any utility service (whether or not separately metered), then Landlord, at its election, may (1)
periodically charge Tenant, as Additional Rent, a sum equal to Landlord’s reasonable estimate of
the cost of Tenant’s excess use of such utility service, and/or (2) install, at Tenant’s expense, a
separate meter to measure the utility service supplied to the Premises, and (ii) if Landlord
reasonably determines that Tenant is using a disproportionate share of the electrical capacity
available for the Building or Project (i.e., electrical usage in excess of that which would
typically be used for general office purposes), then, in addition to the foregoing, Landlord may
install, at Tenant’s expense, additional equipment to increase me electrical capacity for the
Building or Project to offset excess electrical usage by Tenant. Any interruption or cessation of
utilities resulting from any causes, including any entry for repairs pursuant to this Lease, and
any renovation, redecoration or rehabilitation of any area of the Project, shall not render
Landlord liable for damages to either person or property or for interruption or loss to Tenant’s
business, nor be construed as an eviction of Tenant, nor work an abatement of any portion of Rent,
nor relieve Tenant from fulfillment of any covenant or agreement hereof; provided, however, that if
(i) an interruption of the Project services prevents Tenant from occupying all or a material
portion of the Premises for the Permitted Use for a period of at least seven (7) consecutive days
and (ii) such interruption was caused by the negligence or willful misconduct of Landlord, its
agents or employees, then monthly Rent shall thereafter be proportionately abated during the period
of such interruption. Nothing in this Section 4 shall limit the parties’ rights and obligations
under Section 9 hereof, in the event of a casualty affecting the Building or Premises.

     5. ALTERATIONS AND REPAIRS.

          5.1 Landlord’s Consent and Conditions.

               (a) Except for Minor Alterations (as defined below), Tenant shall not make any improvements or
alterations to the Premises (the “Work”) without in each instance

-14-

 

submitting plans and
specifications for the Work to Landlord and obtaining Landlord’s prior written consent Tenant shall
pay Landlord’s standard charge (or, if Landlord does not have a standard charge, then Landlord’s
actual costs incurred) for review of all of the plans and all other items submitted by Tenant
Landlord will be deemed to be acting reasonably in withholding its consent for any Work which (i)
impacts or affects the base structural components or the Building Systems, (ii) impacts or affects
any other tenant’s premises or the common areas of the Project, (iii) is visible from outside the
Premises, or (iv) would utilize building materials or equipment which are inconsistent with
Landlord’s standard building materials and equipment for the Building.

               (b) Landlord’s approval shall not be required for Work on the ulterior of the Premises costing
less than Fifteen Thousand Dollars ($15,000.00) per project (“Minor Alterations”), provided
that (i) Landlord would not have the right to reasonably withhold consent to the Work pursuant to
clauses (i) through (iv) of Section 5.1(a) above; and (ii) Tenant provides Landlord with written
notice of such Minor Alteration, which shall include a copy of any governmental permits required to
complete such Minor Alteration, prior to commencing construction of such Minor Alteration. All
references to “Work” shall mean and include Minor Alterations, except as expressly provided to the
contrary.

               (c) Tenant shall pay for the cost of all Work, including the cost of any and all approvals,
permits, fees and other charges which may be required as a condition of performing such Work.

               (d) The following requirements shall apply to all Work:

                    (i) At least seven (7) days before beginning any Work, Tenant shall furnish to Landlord (1)
written notice of the expected commencement date of the Work to permit Landlord to post and record
a notice of nonresponsibility, (2) building permits, (3) certificates of insurance satisfactory to
Landlord, and, (4) at Landlord’s request with respect to Work in excess of Twenty-Five Thousand
Dollars ($25,000.00), security for payment of all costs to complete the construction of such Work.

                    (ii) Tenant shall not take any action which would violate Landlord’s labor contracts or which
would cause a work stoppage, picketing, labor disruption or dispute, or interfere with Landlord’s
or any other tenant’s or occupant’s business or with the rights and privileges of any person
lawfully in the Building (“Labor Disturbance”). Tenant shall take the actions necessary to
resolve any Labor Disturbance, and shall have pickets removed and, at the request of Landlord,
immediately terminate any work in the Premises that gave rise to the Labor Disturbance, until
Landlord gives its written consent for the work to resume. Tenant shall have no claim for damages
against Landlord or any of the Landlord Parties as a result of the above actions.

                    (iii) The Work shall be performed in a good and workmanlike manner, meeting the standard for
construction and quality of materials in the Building, and shall

-15-

 

comply with all insurance
requirements and all applicable laws, ordinances, regulations or requirements of the United States
of America, the State of California, or the ordinances, regulations or requirements of the local
municipal or county governing body or other lawful authorities having jurisdiction over the
Project, including, without limitation, any such laws, ordinances, regulations or requirements
relating to hazardous materials or substances, as those terms are defined by applicable laws now or
hereafter in effect (collectively, “Governmental Requirements”).

                    (iv) Tenant shall perform all Work so as to minimize or prevent disruption to other tenants,
and Tenant shall comply with all reasonable requests of Landlord in response to complaints from
other tenants.

                    (v) Tenant shall perform all Work in compliance with any “Policies, Rules and Procedures
for Construction Projects” which may be in effect at the time the Work is performed.

                    (vi) All Work shall be performed only by contractors or mechanics approved by Landlord, which
approval shall not be unreasonably withheld, conditioned or delayed; provided, however, that (1)
Landlord may, in its sole discretion, specify engineers, general
contractors, subcontractors, and architects to perform work, affecting the Building Systems or
any structural component of the Building or Project; and (2) if Landlord consents to any Work that
requires work to be performed outside the Premises, Landlord may elect to perform such work at
Tenant’s expense.

                    (vii) Tenant shall permit Landlord to supervise all Work, including, without limitation, the
right (but not an obligation) to inspect the construction work during the progress thereof, and to
require corrections of faulty construction or any material deviation from the plans for such Work
as approved by Landlord; provided, however, that no such inspection shall be deemed to create any
liability on the part of Landlord, or constitute a representation by Landlord or any person hired
to perform such inspection that the work so inspected conforms with such plans or complies with any
Governmental Requirements, and no such inspection shall give rise to a waiver of, or estoppel with
respect to, Landlord’s continuing right at any time or from time to time to require the correction
of any faulty work or any material deviation from such plans.

                    (viii) Landlord may charge a supervisory fee not to exceed five percent (5%) of labor,
material, and all other costs of the Work to compensate Landlord for its management and supervision
of the progress of the Work; provided, however, that Landlord shall not charge such fee for
cosmetic Work in the interior of tine Premises costing less than Five Thousand Dollars ($5,000.00)
per project.

                    (ix) Upon completion, Tenant shall furnish Landlord with contractor’s affidavits and full and
final statutory waivers of liens, as-built plans and specifications, and receipted bills covering
all labor and materials, and all other close-out documentation related to

-16-

 

the Work, including any
other information required under any ‘Policies, Rules and Procedures for Construction Projects”
which may be in effect at the time.

          5.2 No Liens. Tenant has no authority to cause or permit any lien or encumbrance of
any kind to affect Landlord’s interest in the Project; any such lien or encumbrance shall attach to
Tenant’s interest only. If any mechanic’s lien shall be filed or claim of lien made for work or
materials furnished to Tenant, then Tenant shall at its expense within ten (10) days thereafter
either discharge or contest the lien or claim. If Tenant contests the lien or claim, then Tenant
shall (a) within such ten (10) day period, provide Landlord adequate security for the lien or
claim, (b) contest the lien or claim in good faith by appropriate proceedings that operate to stay
its enforcement, and (c) pay promptly any final adverse judgment entered in any such proceeding.
If Tenant does not comply with these requirements, Landlord may discharge the lien or claim, and
the amount paid, as well as attorneys fees and other expenses incurred by Landlord, shall
constitute Additional Rent payable by Tenant on demand.

          5.3 Ownership of Improvements. All Work as defined in this Section 5, partitions, hardware, equipment, machinery and all
other improvements and all fixtures, except trade fixtures, constructed in the Premises by either
Landlord or Tenant, (a) shall become Landlord’s property upon installation without compensation to
Tenant, unless Landlord consents otherwise in writing, and (b) shall, at Landlord’s option, either
(i) be surrendered to Landlord with the Premises at the termination of this Lease or of Tenant’s
right to possession, or (ii) be removed in accordance with Section 14 below; provided, however,
that upon Tenant’s written request, in all capital letters, at the time Tenant seeks Landlord’s
consent to any proposed Work, or, in the case of Minor Alterations, upon Tenant’s notification to
Landlord, Landlord will notify Tenant of the portion of the proposed Work to be removed at the
termination of this Lease or Tenant’s right to possession.

     6. USE OF PREMISES.

          6.1 Limitation on Use. Tenant shall use the Premises only for the Permitted Use
stated in the Schedule and Tenant shall not use or permit the Premises or the Project to be used
for any other purpose or purposes whatsoever without the prior written consent of Landlord, which
may be withheld in Landlord’s sole discretion. Tenant shall not allow any use of the Premises
which will negatively affect the cost of coverage of Landlord’s insurance on the Project. Tenant
shall not allow any inflammable or explosive liquids or materials to be kept on the Premises.
Tenant shall not allow any use of the Premises which would cause the value or utility of any part
of the Premises to diminish, and Tenant shall not do or permit anything to be done in or about the
Premises which will in any way obstruct or interfere with Landlord’s use of the Project or
interfere with the rights of other tenants and/or occupants of the Building or Project or injure,
annoy, or disturb them, or allow the Premises to be used for any improper, immoral, unlawful, or
objectionable purpose, or commit any waste. Tenant shall not permit any nuisance or waste to occur
in, on, or about the Project, or allow any offensive noise or odor in or around the Project. At
the end of each business day, or more frequently if necessary, Tenant shall deposit all garbage and
other trash (excluding any inflammable,

-17-

 

explosive and/or hazardous materials) in trash bins or
containers approved by Landlord in locations designated by Landlord from time to time. If any
governmental authority shall deem the Premises to be a “place of public accommodation” under the
Americans with Disabilities Act (“ADA”) or any other comparable law as a result of Tenant’s
use, Tenant shall either modify its use to cause such authority to rescind its designation or be
responsible for any alterations, structural or otherwise, required to be made to the Building or
the Premises under such laws.

          6.2 Signs. Tenant shall not place on any portion of the Premises any sign, placard,
lettering, banner, displays, graphic, decor or other advertising or communicative material which is
visible from the
exterior of the Premises without Landlord’s prior written approval Landlord acknowledges that
Tenant shall be entitled to non-exclusive signage on the monument sign in the front of the
Building, subject to the provisions of this Section 6.2, including Landlord’s prior written
approval of the design, color, material and method of installation of such signage. Tenant
acknowledges that any delay in installation of said monument signage shall not delay the
Commencement Date. Any approved signs shall strictly conform to all Governmental Requirements, any
CC&R’s recorded against the Project, and Landlord’s signage standards in effect at the time, and
shall be installed and removed at Tenant’s expense. Tenant, at its sole expense, shall maintain
such signs in good condition and repair during the Term. Prior to the expiration or earlier
termination of this Lease, Tenant at its sole cost shall remove all of its exterior signage and
repair any and all damage caused to the Building and/or Project (including and fading or
discoloration) by such signs and/or the removal of such signs from the Building and/or Project. As
part of the Tenant Improvements to be performed by Landlord pursuant to Exhibit C, Landlord
shall install the Building standard sign containing Tenant’s name at the entrance to the Premises.

          6.3 Parking. Tenant shall have the non-exclusive right to park in the Project’s
parking facilities in common with other tenants of the Project upon terms and conditions, as may
from time to time be established by Landlord. Tenant agrees not to overburden the parking
facilities (i.e., use more than the number of unassigned parking stalls indicated on the
Schedule) and agrees to cooperate with Landlord and other tenants in the Project in the use of the
parking facilities. Landlord reserves the right in its discretion to determine whether the parking
facilities are becoming crowded and to allocate and assign parking passes among Tenant and the
other tenants in the Project Tenant’s use of the parking facilities shall be at no charge, provided
that Landlord shall have the right to charge Tenant the portion that Landlord reasonably deems
allocable to Tenant of any charges (e.g., fees or-taxes) imposed by the Regional Air
Quality Control Board or other governmental or quasi-governmental agency in connection with the
parking facilities (e.g., in connection with operation or use of the parking facilities).
Landlord shall not be liable to Tenant, nor shall this Lease be affected, if any parking is
impaired by (or if any parking charges are imposed as a result of) any moratorium, initiative,
referendum, law, ordinance, regulation or order passed, issued or made by any governmental or
quasi-governmental body. Tenant’s continued right to use the parking spaces is conditioned upon
Tenant abiding by all rules and regulations which are prescribed from time to time for the orderly
operation and use of the parking facility where the parking passes are located, including any
sticker or other identification system established by

-18-

 

Landlord, Tenant’s cooperation in seeing that
Tenant’s employees and visitors also comply with such rules and regulations and Tenant not being in
default under this Lease. Landlord specifically reserves the right to change the size,
configuration, design, layout and all other aspects of the Project parking facility at any time and
Tenant acknowledges and agrees that Landlord may, without incurring any liability to Tenant and
without any abatement of Rent under this Lease, from tune to time, close-off or restrict access to
the Project parking facility for purposes of permitting or facilitating any such construction,
alteration or improvements. Landlord may delegate its responsibilities hereunder to a parking
operator in which
case such parking operator shall have all the rights of control attributed hereby to the
Landlord with respect to parking at the Project. The parking passes rented by Tenant pursuant to
this Section 6.3 are provided to Tenant solely for use by Tenant’s own personnel and such passes
may not be transferred, assigned, subleased or otherwise alienated by Tenant without Landlord’s
prior approval.

          6.4 Prohibition Against Use of Roof and Structure of Building. Tenant shall be
prohibited from using all or any portion of the roof of the Building or any portion of the
structure of the Building during the Term of this Lease (or any extensions thereof) for any
purposes (including without limitation for the installation, maintenance and repair of a satellite
dish and/or other telecommunications equipment), without Landlord’s prior written consent, which
Landlord may withhold in its sole and absolute discretion. Notwithstanding the foregoing, Landlord
shall grant Tenant with reasonable access to the roof of the Building as may be reasonably
necessary to allow Tenant to perform its HVAC and other maintenance obligations hereunder, provided
that such access shall be subject to any reasonable rules and restrictions mat Landlord may impose
from time to time; provided, however, that Tenant may, subject to Landlord’s reasonable prior
written consent, use the roof for the installation of a non-revenue producing satellite dish to
service Tenant’s business in the Premises. Landlord has made no representations or promise as to
the suitability or effectiveness of any part of the roof for Tenant’s proposed use, or as to any
Governmental Requirements applicable to Tenant’s proposed use.

               (a) Tenant shall submit to Landlord, with any request for consent of any rooftop equipment,
plans and specifications therefor, which must include, without limitation, the design, size and
features of the rooftop equipment and mounting structure, floor and power load requirements,
cabling installations, the means of affixing or mounting the rooftop equipment, and the means of
connecting the rooftop equipment to the Building’s electrical system and to the Premises. Tenant
acknowledges and agrees that, if Landlord consents to Tenant’s use of any potion of the roof of the
Building, such use shall be non-exclusive and subject to Landlord’s approval of location, plans and
installation pursuant to Section 5 of this Lease and such rules and regulations as Landlord may
prescribe, including, without limitation, with regard to (i) the location, size, type and methods
of installation of the proposed rooftop equipment, (ii) requirements to prevent electrical,
electromagnetic, radio frequency or other interference with other telecommunication equipment on or
about the Building, (iii) rooftop space availability, (iv) restrictions on penetration of the roof
surface, (v) rooftop access rights, and (vi) removal requirements upon the expiration or earlier
termination of this Lease.

-19-

 

               (b) Nothing herein shall limit or restrict Landlord’s rights under Section 11.13, or require
Landlord to obtain Tenant’s consent prior to exercising such rights.

     7. GOVERNMENTAL REQUIREMENTS AND BUILDING RULES.

          7.1 Compliance in Premises.

               (a) Landlord’s Responsibilities. As of the Commencement Date, the Premises shall
comply in all material respects with all applicable Governmental Requirements (as interpreted by
applicable governmental or quasi-governmental authorities as of the Commencement Date), without
regard to any specific use of the Premises by Tenant. If Landlord or Tenant receives written
notice from any governmental or quasi-governmental authority that any portion of the Premises
violated Governmental Requirements as of the Commencement Date, Landlord shall not be liable to
Tenant for any damages, but Landlord, at no cost to Tenant, shall, as Tenant’s sole remedy, perform
such work or take such other action as may be necessary to cure such violation, but only to the
extent that a governmental or quasi-governmental authority requires such work or action, or to the
extent that such violation materially and adversely affects Tenant’s use or occupancy of the
Premises. Notwithstanding the foregoing, (i) Landlord shall have the right to contest any alleged
violation in good faith, including, without limitation, the right to apply for and obtain a waiver
or deferment of compliance, the right to assert any and all defenses allowed by law, and the right
to appeal any decisions, judgments or rulings to the fullest extent permitted by law, and
Landlord’s obligation to perform work or take such other action to cure a violation under this
Section 7.1(a) shall apply after the exhaustion of any and all rights to appeal or contest; and
(ii) issuance of a temporary or final certificate of occupancy with respect to the Tenant
Improvements (or if such certificates are not customarily issued for such work by the local
governmental authority, then the final inspection and sign-off on the job card for such work by the
building inspectors(s)), shall conclusively establish the compliance of the Premises with the
applicable Governmental Requirements, including the ADA.

               (b) Tenant’s Responsibilities. Tenant shall, at its sole cost and expense, (1) comply
with all Governmental Requirements; with any occupancy certificate issued for the Premises; and
with the provisions of all recorded documents affecting the Premises, insofar as any thereof
relates to or affects the condition, use or occupancy of the Premises; and (2) take all proper and
necessary action to cause the Premises, including any repairs, replacements, alterations and
improvements thereto, to be maintained, constructed, used and occupied in compliance with
applicable Governmental Requirements, including any applicable code and ADA requirements, whether
or rot such requirements are based on Tenant’s use of the Premises, and further to assume all
responsibility to ensure that the Premises continues to comply with all Governmental Requirements,
including applicable code and ADA requirements, throughout the Term Tenant shall be responsible, at
its sole cost and expense, to make all alterations to the Premises as are required to comply with
the governmental rules, regulations, requirements or standards described in this Section 7.1. The
judgment of any court of competent jurisdiction or the admission of Tenant in any

-20-

 

judicial action,
regardless of whether Landlord is a party thereto, that Tenant has violated any of said
governmental measures, shall be conclusive of that fact as between Landlord and Tenant

          7.2 Compliance in Common Areas. Subject to reimbursement as an Operating Cost as
provided in Section 2 above, Landlord shall perform any work required under any applicable
Governmental Requirements, including the ADA, to be performed in the common areas of the Project,
except mat Tenant shall be solely responsible for all such compliance work which is required as a
result of Tenant’s use or activities or Tenant’s proposed alterations or repairs. With respect to
any code compliance work required outside the Premises for which Tenant is responsible hereunder,
Landlord shall have the right to perform such work, or require that Tenant perform such work with
contractors, subcontractors, engineers and architects approved by Landlord; and if Landlord elects
to perform such work outside the Premises, Tenant shall reimburse Landlord for the cost of such
work within ten (10) business days following receipt of invoices therefor. Landlord makes no
representations or warranties regarding whether the Project or the Premises complies with
applicable Governmental Requirements as of the date of this Lease; provided, however, that Landlord
represents to Tenant that, as of the date of this Lease, Landlord has not received any written
notice from any governmental authority that the Building is in violation of any Governmental
Requirements, which violation remains uncured. If it is determined that the foregoing
representation was untrue when made, Landlord shall, as Tenant’s sole and exclusive remedy, perform
such work as may be required by such Governmental Requirements, but only to the extent that failure
to do so would result in an obligation or liability accruing to Tenant or result in an imminent and
material adverse impact on Tenant’s occupancy of or access to the Premises.

          7.3 Rules and Regulations. Tenant shall also comply with all reasonable rules for the
Project which may be established and amended from time to time by Landlord. The present rules and
regulations are contained in Exhibit B. Failure by another tenant to comply with the rules
or failure by Landlord to enforce them shall not relieve Tenant of its obligation to comply with
the rules or make Landlord responsible to Tenant in any way. Landlord shall use reasonable efforts
to apply the rules and regulations uniformly with respect to Tenant and any other tenants in the
Project under leases containing rules and regulations similar to this Lease. If Tenant performs
alterations or repairs, Tenant shall comply with the provisions of Sections of this Lease.

     8. WAIVER OF CLAIMS; INDEMNIFICATION: INSURANCE.

          8.1 Waiver of Claims. Neither Landlord nor the other Landlord Parties (as defined
below) shall be liable to Tenant or to any Tenant Parties (as defined below), and Tenant waives all
claims against Landlord and such other Landlord Parties, for any injury to or death of any person
or for loss of use of or damage to or
destruction of property in or about the Premises or Project by or from any cause whatsoever,
including without limitation, earthquake or earth movement, gas, fire, oil, electricity or leakage
from the roof, walls, basement or other portion of the Premises or Project, except only, with
respect to any Landlord Party, to the extent such injury, death or damage is caused by the gross
negligence or willful misconduct of such Landlord Party and not

-21-

 

covered by the insurance required
to be carried by Tenant hereunder or except to the extent such limitation on liability is
prohibited by law. The provisions of this Section 8.1 shall survive the expiration or earlier
termination of this Lease until all claims within the scope of this Section 8.1 are fully, finally,
and absolutely barred by the applicable statutes of limitations.

          8.2 Indemnification.

               (a) Tenant shall indemnify, protect, defend (by counsel reasonably satisfactory to Landlord)
and hold harmless Landlord and its officers, directors, employees and agents (each, a “Landlord
Party” and collectively, the “Landlord Parties”), and each of them, against any and all
obligations, losses, claims, actions (including remedial or enforcement actions of any kind and
administrative or judicial proceedings, suits, orders or judgments), causes of action, liabilities,
penalties, damages (including consequential and punitive damages), costs and expenses (including
reasonable attorneys’ and consultants’ fees and expenses) (collectively, “Claims”) arising
from any of the following, including, but not limited to, Claims brought by or on behalf of
employees of Tenant, with respect to which Tenant waives, for the benefit of the Landlord Parties,
any immunity to which Tenant may be entitled under any worker’s compensation laws: (i) any cause
in, on or about the Premises, (ii) any act or omission or negligence of Tenant or any person or
entity claiming by or through Tenant (including any assignee or subtenant), or any of their
respective members, partners, employees, contractors, agents, customers, visitors, licensees or
other persons in or about the Project by reason of Tenant’s occupancy of the Premises (each a
“Tenant Party” and, collectively, “Tenant Parties”), or (iii) Tenant’s breach of
its obligations under this Lease, either prior to, during, or after the expiration of the Lease
Term (including, without limitation, Tenant’s failure to surrender the Premises in accordance with
Section 14 below); provided, however, that, with respect to any Landlord Party, Tenant’s
obligations under this Section shall be inapplicable to the extent such Claims arise solely from
the gross negligence or willful misconduct of such Landlord Party and are not covered by the
insurance required to be carried by Tenant hereunder, or to the extent such obligations are
prohibited by applicable law.

               (b) Subject to the waivers of liability and subrogation set forth in Sections 8.1 and 8.6,
respectively, Landlord shall indemnify and hold harmless Tenant, its officers, agents and employees
from and against all Claims to the extent arising from the gross negligence or willful misconduct
of Landlord, its employees, agents or contractors.

               (c) Tenant’s duty to defend Landlord and the other Landlord Parties under this Section 8.2 is
separate and independent of Tenant’s duty to indemnify the Landlord Parties. The duty to defend
includes claims for which the Landlord Parties may be liable without fault or strictly liable. The
duty to defend applies regardless of whether the issues of negligence, liability, fault, default,
or other obligation on the part of Tenant Parties have been determined. The duty to defend applies
immediately, regardless of whether any Landlord Parties have paid any sums or incurred any
detriment arising out of or relating (directly or indirectly) to any Claims. The parties expressly
intend that Landlord Parties shall be entitled to obtain summary adjudication or summary judgment

-22-

 

regarding Tenant’s duty to defend the Landlord Parties at any stage of any claim or suit within the
scope of this Section.

               (d) Tenant’s obligations under this Section shall survive the expiration or earlier
termination of this Lease until all Claims within the scope of this Section 8.2 are fully, finally,
and absolutely barred by the applicable statutes of limitations.

          8.3 Tenant’s Insurance. Tenant shall maintain insurance as follows, with such other
terms, coverages and insurers, as Landlord shall reasonably require from time to time:

               (a) Commercial General Liability Insurance, with (i) Contractual Liability including the
indemnification provisions contained in this Lease, (ii) a severability of interest endorsement,
and (iii) limits of not less than Two Million Dollars ($2,000,000) combined single limit per
occurrence, not less than Two Million Dollars ($2,000,000) in the aggregate for bodily injury,
sickness or death, and property damage, and umbrella coverage of not less than Three Million
Dollars ($3,000,000).

               (b) Special Causes of Loss (ISO form CP 10 30 10/00 or its substantive equivalent) Insurance
covering the replacement cost of all leasehold improvements, trade fixtures and personal property
in or on the Premises, with a deductible not greater than Two Thousand Five Hundred Dollars
($2,500.00).

               (c) Business Income insurance and extra expense coverage with coverage amounts that shall
reimburse Tenant for all rental, expense and other payment obligations of Tenant under this Lease
for a period of not less than one (1) year.

               (d) Workers’ compensation or similar insurance in form and amounts required by law, and
Employer’s Liability with not less than the following limits:

	 	 	 	 	 
	Each Accident:
	 	$	500,000	 
	Disease—Policy Limit:
	 	$	500,000	 
	Disease—Each Employee:
	 	$	500,000	 

     Tenant’s insurance shall be primary and not contributory to that carried by Landlord, its
agents, or mortgagee. Landlord, and if any, Landlord’s building manager or agent, and, if Landlord
requests, any Security Holder (as defined in Section 16.1 below), shall be named as additional
insureds under the insurance required of the Tenant in Section 8.3(a), and Tenant’s property
insurance policies shall be endorsed to provide that any loss shall be payable to Landlord and such
other additional parties as Landlord may specify, as their respective interests may appear. The
company or companies writing any insurance which Tenant is required to maintain under this Lease,
as well as the form of such insurance, shall at all times be subject to Landlord’s approval, and
any such company shall be licensed to do business in the state in which the Building is located.
Such insurance companies shall have a A.M. Best rating of A VI or better.

-23-

 

               (e) Tenant shall cause any contractor of Tenant performing work on the Premises to maintain
insurance as follows, with such other terms, coverages and insurers, as Landlord shall reasonably
require from time to time:

                    (i) Commercial General Liability Insurance, including contractor’s liability coverage,
contractual liability coverage, completed operations coverage, broad form property damage
endorsement, and contractor’s protective liability coverage, to afford protection with limits, for
each occurrence, of not less than One Million Dollars ($1,000,000) with respect to personal injury,
death or property damage.

                    (ii) Workers’ compensation or similar insurance in form and amounts required by law, and
Employer’s Liability with not less than the following limits:

	 	 	 	 	 
	Each Accident:
	 	$	500,000	 
	Disease—Policy Limit:
	 	$	500,000	 
	Disease—Each Employee:
	 	$	500,000	 

     Such insurance shall contain a waiver of subrogation provision in favor of Landlord and its
agents. Tenant’s contractor’s insurance shall be primary and not contributory to that carried by
Tenant, Landlord, their agents or mortgagees. Tenant and Landlord, and if any, Landlord’s building
manager or agent, and, if Landlord requests, any Security Holder shall be named as additional
insured on Tenant’s contractor’s insurance policies.

          8.4 Insurance Certificates. Tenant shall deliver to Landlord certificates of
liability insurance on ACORD Form 25 and a certificate of property insurance on ACORD Form 27
evidencing all required insurance no later than five (5) days prior to the Commencement Date (or
five (5) days prior to the date of any early access to the Premises Landlord grants to Tenant in
accordance with the terms, of this Lease) and each renewal date. Each certificate shall provide
that said insurance shall not be canceled unless
thirty (30) days prior written notice (ten days for non-payment of premium) shall have been
given to Landlord and Tenant.

          8.5 Landlord’s Insurance. Subject to reimbursement as an Operating Cost in accordance
with the provisions of Section 2 hereof, Landlord shall procure and maintain in effect throughout
the Term of this Lease commercial general liability insurance, property insurance and/or such other
types of insurance as are normally carried by reasonably prudent owners of commercial properties
substantially similar to the Project. Such coverages shall be in such amounts, from such companies
and on such other terms and conditions as Landlord may from time to time reasonably determine, and
Landlord shall have the right, but not the obligation, to change, cancel, decrease or increase any
insurance coverages in respect of the Building, add additional forms of insurance as Landlord shall
deem reasonably necessary, and/or obtain umbrella or other policies covering both the Building and
other assets owned by or associated with Landlord or its affiliates, in which event the cost
thereof shall be equitably allocated.

-24-

 

          8.6 Waiver of Subrogation. Landlord and Tenant hereby waive and release any and all
rights of recovery against the other party, including officers, employees, agents and authorized
representatives (whether in contract or tort) of such other party, that arise or result from any
and all loss of or damage to any property of the waiving party located within or constituting part
of the Building, including the Premises, to the extent of amounts payable under a standard ISO
Commercial Property insurance policy, or such additional property coverage as the waiving party may
carry (with a commercially reasonable deductible), whether or not the party suffering the loss or
damage actually carries any insurance, recovers under any insurance or self-insures the loss or
damage. Each party shall have their property insurance policies issued in such form as to waive
any right of subrogation as might otherwise exist. This mutual waiver is in addition to any other
waiver or release contained in this Lease.

     9. FIRE AND OTHER CASUALTY.

          9.1 Termination. If a fire or other casually causes damage to the Building or the
Premises, and sufficient insurance proceeds will be available to Landlord to cover the cost of any
restoration to the Building and Premises, Landlord shall engage a contractor or registered
architect to estimate, within one (1) month of the casualty (or as soon thereafter as is reasonably
practicable), to both Landlord and Tenant the amount of time needed to restore the Building and the
Premises to tenantability, using standard working methods without the payment of overtime and other
premiums. If the time needed exceeds nine (9) months from the beginning of the restoration, or two
(2) months therefrom if the restoration would begin during the last twelve (12) months of the
Lease, then in the case of damage to the Premises, either Landlord or Tenant may terminate this
Lease, and in the case of damage to the Building, Landlord may terminate this Lease, by notice to
the other party within ten (10) days after the notifying party’s receipt of the architect’s
estimate. If sufficient insurance proceeds will not be available to Landlord to cover the cost of
any restoration to the Building or the Premises, Landlord may terminate this Lease by written
notice to Tenant. Any termination pursuant to this Section 9.1 shall be effective thirty (30) days
from the date of such termination notice and Rent shall be paid by Tenant to that date, with an
abatement for any portion of the Premises which has been rendered untenantable as a result of the
casualty (except to the extent that (a) the casualty was caused by the negligence or intentional
misconduct of Tenant, its agents, employees, contractors, subtenants or assignees, or (b) so long
as the same does not arise from Landlord’s breach of its obligations under Section 8.5 above,
Landlord does not receive insurance proceeds sufficient to cover the rent interruption during such
period).

          9.2 Restoration. If a casualty causes damage to the Building or the Premises but this
Lease is not terminated for any reason, then subject to the rights of any mortgagees or ground
lessors, Landlord shall obtain the applicable insurance proceeds and diligently restore the
Building and the Premises to substantially their prior condition, except for modifications required
by then applicable Governmental Requirements or any other modifications to the common areas of the
Building, if any, deemed desirable by Landlord; provided, however, that, within ten (10) days
following notice to Tenant from Landlord (whether or not this Lease is terminated pursuant to

 - 25 - 

 

Section 9.1 above), Tenant shall irrevocably and unconditionally assign to Landlord (or to any
party designated by Landlord) all insurance proceeds payable to Tenant under Tenant’s insurance
required under Section 8.3(b) above which pertain to the repair and restoration of the leasehold
improvements in the Premises, including any leasehold improvements performed by or on behalf of
Tenant pursuant to Section 5 above; and provided further, that if the cost of repair and
restoration by Landlord of the leasehold improvements in the Premises exceeds the amount of
insurance proceeds received by Landlord from Tenant’s insurance carrier, the cost of such repair
and restoration shall be promptly paid by Tenant to Landlord, but in any event prior to Landlord’s
commencement of repair of the damage. Notwithstanding the foregoing, Landlord shall have no
obligation with respect to, and if Landlord elects or is required to perform any restoration
hereunder, Tenant shall be responsible for and shall, repair and replace at its sole cost all of
Tenant’s equipment, furniture, trade fixtures and other personal property in the Premises,
including, without limitation, any telecommunications wires, cables and related devices located in
or serving the Premises. Rent shall be abated on a per diem basis during the restoration for any
portion of the Premises which is untenantable, except to the extent that (a) the casualty was
caused by the negligence or intentional misconduct of Tenant, its agents, employees, contractors,
subtenants or assignees, (b) Landlord is delayed in completing the repair or restoration as a
result of any act, omission, neglect or failure of Tenant or any of Tenant’s agents, employees,
contractors or subcontractors or (c) Landlord does not receive insurance proceeds sufficient to
cover the rent interruption during such period, so long as the same does not arise from Landlord’s
breach of its obligations under Section 8.5 above. Tenant shall not be entitled to any
compensation or damages from Landlord for loss of the use of the Premises, damage to Tenant’s
personal property and trade fixtures or any inconvenience occasioned by such damage, repair or
restoration. Tenant hereby waives the provisions of Section 1932, Subdivision 2, and Section 1933,
Subdivision 4, of the California Civil Code, and the provisions of any similar law hereinafter
enacted.

     10. EMINENT DOMAIN. If a part of the Project is taken by eminent domain or deed in
lieu thereof which is so substantial that the Premises cannot, in Tenant’s reasonable judgment,
reasonably be used by Tenant for the operation of its business, then either party may terminate
this Lease effective as of the date of the taking. If any substantial portion of the Project is
taken without affecting the Premises, then Landlord may terminate this Lease as of the date of such
taking. Rent shall abate from the date of the taking in proportion to any part of the Premises
taken. The entire award for a taking of any kind shall be paid to Landlord, and Tenant shall have
no right to share in the award; provided, however, that the foregoing shall not be deemed to
prohibit Tenant from filing a separate claim, at its sole cost and expense, for an award or portion
thereof separately designated for (a) relocation costs, (b) moving expenses or (c) the unamortized
portion of the value of all Work performed in the Premises by Tenant during the Term (such
amortization to be calculated on a straight-line basis over the Term of this Lease, without regard
to any future extension terms as of the date of the taking, and such value to be determined, at
Tenant’s expense, by an appraiser selected by Landlord and approved by Tenant). All obligations
accrued to the date of the taking shall be performed by the party liable to perform said
obligations, as set forth herein. Tenant hereby waives

 - 26 - 

 

any and all rights it might otherwise have pursuant to Section 1265.130 of The California Code
of Civil Procedure.

     11. RIGHTS RESERVED TO LANDLORD. Landlord may exercise at any time any of the
following rights respecting the operation of the Project without liability to Tenant of any kind:

          11.1 Name. To change the name of the Building or the Project or the street address of
the Building.

          11.2 Signs. To install, modify and/or maintain any signs on the exterior and in the
interior of the Building or on the Project, and to approve at its sole discretion, prior to
installation, any of Tenant’s signs in the Premises visible from the common areas or the exterior
of the Building.

          11.3 Window Treatments. To approve, at its discretion, prior to installation, any
shades, blinds, ventilators or window treatments of any kind, as well as any lighting within the
Premises that may be visible from the exterior of the Building or any interior common area.

          11.4 Keys. To retain and use at any time passkeys to enter the Premises or any door
within the Premises. Tenant shall not alter or add any lock or bolt.

          11.5 Access. To have access to the Premises with twenty-four hours’ prior notice
(except in the case of an emergency, in which case Landlord shall have the right to immediate
access) to inspect the Premises, to post notices of non-responsibility in connection with any Work,
to make repairs, alterations, additions or improvements to the Premises or Building, and to perform
any other obligations of Landlord hereunder, all without abatement of Rent.

          11.6 Preparation for Reoccupancy. To decorate, remodel, repair, alter or otherwise
prepare the Premises for reoccupancy at any time after Tenant abandons the Premises, without
relieving Tenant of any obligation to pay Rent.

          11.7 Heavy Articles. To approve the weight, size, placement and time and manner of
movement within the Building of any safe, central filing system or other heavy article of Tenant’s
property. Tenant shall move its property entirely at its own risk.

          11.8 Show Premises. To show the Premises, at any .reasonable time, to prospective
purchasers, brokers, lenders, mortgagees, investors, rating agencies or others, and, during the
last six (6) months of the Term, as it may be extended, to prospective tenants, provided that
Landlord gives prior notice to Tenant and does not materially interfere with Tenant’s use of the
Premises.

          11.9 Relocation of Tenant. Intentionally Omitted.

 - 27 - 

 

          11.10 Use of Lockbox. To designate a lockbox collection agent for collections of
amounts due Landlord. In that case, the date of payment of Rent or other sums shall be the date of
the agent’s receipt of such payment or the date of actual collection if payment is made in the form
of a negotiable instrument thereafter dishonored upon presentment. However, Landlord may reject
any payment for all purposes as of the date of receipt or actual collection by mailing to Tenant
within a reasonable time after such receipt or collection a check equal to the amount sent by
Tenant

          11.11 Repairs and Alterations. To make repairs or alterations to the Project and in
doing so transport any required material through the Premises, to close entrances, doors,
corridors, elevators and other facilities in the Project, to open any ceiling in the Premises, or
to temporarily suspend services or use of common areas in the Building. Landlord may perform any
such repairs or alterations during ordinary business hours, except that Tenant may require any work
in the Premises to be done after business hours if Tenant pays Landlord for overtime and any other
expenses incurred. Landlord may do or permit any work on any nearby building, land, street, alley
or way.

          11.12 Building Services. To install, use and maintain through the Premises, pipes,
conduits, wires and ducts serving the Building, provided that such installation, use and
maintenance does not unreasonably interfere with Tenant’s use of the Premises.

          11.13 Use of Roof. To install, operate, maintain and repair any satellite dish,
antennae, equipment, or other facility on the roof of the Building or to use the roof of the
Building in any other manner, or to allow any entity selected by Landlord to undertake the
foregoing, provided that such installation, operation, maintenance, repair or use does not
unreasonably interfere with Tenant’s use of the Premises.

          11.14 Other Actions. To take any other action which Landlord deems reasonable in
connection with the operation, maintenance or preservation of the Building and the Project.

     12. EVENTS OF DEFAULT.

          12.1 Tenant’s Default. The occurrence of any one or more of the following events
(each, an “Event of Default”) shall constitute a breach of this Lease by Tenant.

               (a) Tenant fails to pay any Rent when due, and such failure continues for five (5) business
days or more following Landlord’s notice of such failure.

               (b) Tenant fails to perform its obligations under Section 11.9 (Relocation), Section 16
(Subordination), Section 17 (Assignment and Sublease), Section 19 (Estoppel Certificate) or Section
28 (Hazardous Substances) and fails to cure such default within ten (10) days following Landlord’s
notice of such default.

               (c) Tenant abandons the Premises.

 - 28 - 

 

               (d) Tenant fails to perform any obligation to Landlord under this Lease other than those
described in Sections 12.1(a), 12.1(b) or 12.1(c) above, and such failure continues for ten (10)
days after written notice from Landlord or Landlord’s agent, except that if Tenant begins to cure
its failure within the ten (10) day period but cannot reasonably complete its cure within such
period, then, so long as Tenant continues to diligently attempt to cure its failure, the ten (10)
day period shall be extended to sixty (60) days, or such lesser period as is reasonably necessary
to complete the cure.

               (e) One of the following credit defaults occurs:

                       (i) Tenant (or any guarantor of Tenant’s obligations hereunder) commences any proceeding under
any law relating to bankruptcy, insolvency, reorganization or relief of debts, or seeks appointment
of a receiver, trustee, custodian or other similar official for the Tenant (or the guarantor) or
for any substantial part of its property, or any such proceeding is commenced against Tenant (or
the guarantor) and either remains undismissed for a period of thirty (30) days or results in the
entry of an order for relief against Tenant (or the guarantor) which is not fully stayed within
seven (7) days after entry;

                       (ii) Tenant (or any guarantor of Tenant’s obligations hereunder) becomes insolvent or
bankrupt, does not generally pay its debts as they become due, or admits in writing its inability
to pay its debts, or makes a general assignment for the benefit of creditors;

                       (iii) Any third party obtains a levy or attachment under process of law against Tenant’s
leasehold interest.

     Tenant acknowledges and agrees that, notwithstanding the foregoing provisions of this Section
12, Tenant shall be in default for purposes of Section 1161 of the California Code of Civil
Procedure immediately following Tenant’s failure to perform or comply with any covenants,
agreements, terms or conditions of this Lease to be performed or observed by Tenant, including,
without limitation, Tenant’s failure to pay Rent when due, and that any notices required to be
given by Landlord under this Section 12 shall, in each case, be in lieu of, and not in addition to,
any notice required under Section 1161 of the California Code of Civil Procedure, and shall be
deemed to satisfy the requirement, if any, that notice be given pursuant to such section.

          12.2 Landlord Defaults. Landlord shall be in default hereunder if Landlord has not
begun and pursued with reasonable diligence the cure of any failure of Landlord to meet its
obligations hereunder within thirty (30) days after the receipt by Landlord of written notice from
Tenant of the alleged failure to perform. In no event shall Tenant have the right to terminate or
rescind this Lease as a result of Landlord’s default as to any covenant or agreement contained in
this Lease. Tenant hereby waives such remedies of termination and rescission and hereby agrees
that Tenant’s remedies for default hereunder and for breach of any promise or inducement shall be
limited to a suit for damages and/or injunction. In addition, Tenant hereby covenants that, prior
to

 - 29 - 

 

the exercise of any such remedies, Tenant will give notice and a reasonable time to cure any
default by Landlord to any holder of a mortgage or deed of trust encumbering Landlord’s interest in
the Project of which Tenant has been given notice.

          12.3 Force Majeure. Notwithstanding anything contained in this Lease to the contrary,
neither party shall be in default hereunder to the extent such party is unable to perform any of
its obligations on account of any prevention, delay, stoppage due to strikes, lockouts, inclement
weather, labor disputes, inability to obtain labor, materials, fuels, energy or reasonable
substitutes therefor, governmental restrictions, regulations, controls, actions or inaction, civil
commotion, fire or other acts of god, national emergency, acts of war or terrorism or any other
cause of any kind beyond its reasonable control (except financial inability) (collectively,
“Force Majeure”); provided, however, that nothing contained in this Section 12.3 shall (1)
relieve Tenant from the obligation to timely pay Rent under this Lease, (2) permit Tenant to
holdover in the Premises after the expiration or earlier termination of this Lease, (3) relieve
Tenant from any obligation required to be performed by Tenant hereunder if Tenant’s failure to
perform such obligation would constitute a breach under Sections 6.1 or 7.1 above, or would
interfere with any other tenant of the Projects use, occupancy or enjoyment of its respective
premises or the Project.

     13. LANDLORD REMEDIES. UPON ANY EVENT OF DEFAULT BY TENANT, LANDLORD SHALL HAVE THE
FOLLOWING REMEDIES, IN ADDITION TO ALL OTHER RIGHTS AND REMEDIES PROVIDED BY LAW OR OTHERWISE
PROVIDED IN THIS LEASE, TO WHICH LANDLORD MAY RESORT CUMULATIVELY OR IN THE ALTERNATIVE:

          13.1 Termination of Lease. Landlord may elect by notice to Tenant to terminate this
Lease, in which event, Tenant shall immediately vacate the Premises and deliver possession to
Landlord.

          13.2 Civil Code Section 1951. 4 Remedy. Even though Tenant has breached this Lease,
this Lease shall continue in effect for so long as Landlord does not terminate Tenant’s right to
possession, and Landlord shall have all of its rights and remedies, including the right, pursuant
to California Civil Code Section 1951.4, to recover all rent as it becomes due under this Lease, if
Tenant has the right to sublet or assign, subject only to reasonable limitations. Acts of
maintenance or preservation or efforts to re let the Premises or the appointment of a receiver upon
initiative of Landlord to protect Landlord’s interest under this Lease shall not constitute a
termination of Tenant’s right to possession unless written notice of termination is given by
Landlord to Tenant.

          13.3 Lease Termination Damages. If Landlord elects to terminate this Lease, then this
Lease shall terminate on the date for termination set forth in such notice. Tenant shall
immediately vacate the Premises and deliver possession to Landlord, and Landlord may repossess the
Premises and may, at Tenant’s sole cost, remove any of Tenant’s signs and any of its other

 - 30 - 

 

property, without relinquishing its right to receive Rent or any other right against Tenant.
On termination, Landlord has the right to recover from Tenant as damages:

               (a) The worth at the time of award of unpaid Rent and other sums due and payable which had
been earned at the time of termination; plus

               (b) The worth at the time of award of the amount by which the unpaid Rent and other sums due
and payable which would have been earned after termination until the time of award exceeds the
amount of such Rent loss that Tenant proves could have been reasonably avoided; plus

               (c) The worth at the time of award of the amount by which the unpaid Rent and other sums due
and payable for the balance of the Term after the time of award exceeds the amount of such Rent
loss that Tenant proves could be reasonably avoided; plus

               (d) Any other amount necessary to compensate Landlord for all the detriment proximately caused
by Tenant’s failure to perform Tenant’s obligations under this Lease, or which, in the ordinary
course of things, would be likely to result therefrom, including, without limitation, any costs or
expenses incurred by Landlord: (i) in retaking possession of the Premises; (ii) in maintaining,
repairing, preserving, restoring, replacing, cleaning, altering or rehabilitating the Premises or
any portion thereof, including such acts for reletting to a new tenant or tenants; (iii) for
leasing commissions; or (iv) for any other costs necessary or appropriate to relet the Premises;
plus

               (e) At Landlord’s election, such other amounts in addition to or in lieu of the foregoing as
may be permitted from time to time by the laws of the State of California.

     The “worth at the time of award” of the amounts referred to in Sections 13.3(a) and 13.3(b) is
computed by allowing interest at the Interest Rate on the unpaid rent and other sums due and
payable from the termination date through the date of award. The “worth at the time of award” of
the amount referred to in Section 13.3(c) is 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%).
Tenant waives redemption or relief from forfeiture under California Code of Civil Procedure
Sections 1174 and 1179, or under any other present or future law, if Tenant is evicted or Landlord
takes possession of the Premises by reason of any Event of Default by Tenant hereunder.

     13.4 Landlord’s Remedies Cumulative. All of Landlord’s remedies under this Lease
shall be in addition to all other remedies Landlord may have at law or in equity, including,
without limitation, the remedy described in California Civil Code Section 1951.4 (pursuant to which
Landlord may continue this Lease in effect after Tenant’s breach and abandonment and recover rent
as it becomes due if Tenant has the right to sublet or assign the Lease, subject to reasonable
limitations). Waiver by Landlord of any breach of any obligation by Tenant shall be effective only
if it is in writing, and shall not be deemed a waiver of any other breach, or any subsequent breach
of

 - 31 - 

 

the same obligation. The possession of Tenant’s funds, negotiation of Tenant’s negotiable
instruments, or acceptance of Tenant’s payment by Landlord or its agents shall not constitute a
waiver of any breach by Tenant, and if such possession, negotiation or acceptance occurs after
Landlord’s notice to Tenant, or termination of this Lease or of Tenant’s right to possession, such
possession, negotiation or acceptance shall not affect such notice or termination. Acceptance of
payment by Landlord after commencement of a legal proceeding or final judgment shall not affect
such proceeding or judgment. Landlord may advance such monies and take such other actions for
Tenant’s account as reasonably may be required to cure or mitigate any default by Tenant. Tenant
shall immediately reimburse Landlord for any such advance, and such sums shall bear interest at the
Interest Rate until paid.

          13.5 WAIVER OF TRIAL BY JURY. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY
WAIVES TRIAL BY JURY IF ANY LEGAL PROCEEDING IS BROUGHT BY THE OTHER IN CONNECTION WITH THIS LEASE.
EACH PARTY SHALL BRING ANY ACTION AGAINST THE OTHER IN CONNECTION WITH THIS LEASE IN A FEDERAL OR
STATE COURT LOCATED IN CALIFORNIA, CONSENTS TO THE JURISDICTION OF SUCH COURTS, AND WAIVES ANY
RIGHT TO HAVE ANY PROCEEDING TRANSFERRED FROM SUCH COURTS ON THE GROUND OF IMPROPER VENUE OR
INCONVENIENT FORUM. THE PROVISIONS OF THIS SECTION 13.5 SHALL SURVIVE THE EXPIATION OR EARLIER
TERMINATION OF THIS LEASE.

     14. SURRENDER. Upon the expiration or earlier termination of this Lease for any
reason, Tenant shall surrender the Premises to Landlord in its condition existing as of the date
Landlord delivers possession of the Premises to Tenant, normal wear and tear and damage by fire or
other casualty excepted, with all interior walls repaired if marked or damaged, all broken, marred
or nonconforming acoustical ceiling tiles replaced, the plumbing and electrical systems and
lighting in good order and repair, including replacement of any burned out or broken light bulbs or
ballasts, the HVAC equipment serviced and repaired by a reputable and licensed service firm
acceptable to Landlord, and all floors cleaned, all to the reasonable satisfaction of Landlord.
Tenant shall remove from the Premises and the Project all of Tenant’s trade fixtures, furniture,
moveable equipment and other personal property, and any Work which Landlord elects to be removed
pursuant to Section 5.3, and shall restore the Premises to its condition prior to their
installation, including, without limitation, repairing all damage caused by the installation or
removal of any of the foregoing items. If Tenant does not timely remove such property, then Tenant
shall be conclusively presumed to have, at Landlord’s election: (a) conveyed such property to
Landlord without compensation or (b) abandoned such property, and Landlord may dispose of or store
any part thereof in any manner at Tenant’s sole cost, without waiving Landlord’s right to claim
from Tenant all expenses arising out of Tenant’s failure to remove the property, and without
liability to Tenant or any other person. Landlord shall have no duty to be a bailee of any such
personal property. If Landlord elects to consider such property abandoned, Tenant shall be liable
to Landlord for the costs of: (i) removal of any such Work or personal property, (ii) storage,
transportation, and disposition of the same, and (iii) repair

 - 32 - 

 

and restoration of the Premises, together with interest thereon at the Interest Rate from the
date of expenditure by Landlord.

     15. HOLDOVER. Tenant shall have no right to holdover possession of the Premises after
the expiration or termination of this Lease without Landlord’s prior written consent which Landlord
may withhold in its sole and absolute discretion. If, however, Tenant retains possession of any
part of the Premises after the Term, Tenant shall become a tenant at sufferance only, for the
entire Premises upon all of the terms of this Lease as might be applicable to such tenancy, except
that Tenant shall pay (a) for the first thirty (30) days of such holding over, an amount equal to
one hundred fifty percent (150%) of the Base Rent, Operating Cost Share Rent, and Tax Share Rent
payable by Tenant immediately prior to such holding over, and (b) thereafter, an amount equal to
two hundred percent (200%) of the Base Rent, Operating Cost Share Rent, and Tax Share Rent payable
by Tenant immediately prior to such holding over (without regard to any abatements of Rent on
account of casualty or otherwise), computed on a monthly basis for each full or partial month
Tenant remains in possession. Tenant shall also protect, defend, indemnify and hold Landlord
harmless from and against all Claims resulting from such failure, including, without limiting the
generality of the foregoing, any claims made by any succeeding tenant founded upon such failure to
surrender and any lost profits to Landlord resulting therefrom. No acceptance of Rent or other
payments by Landlord under these holdover provisions shall operate as a waiver of Landlord’s right
to regain possession or any other of Landlord’s remedies.

     16. SUBORDINATION TO GROUND LEASES AND MORTGAGES.

          16.1 Subordination. This Lease shall be subordinate to any present or future ground
lease or mortgage (each, a “Superior Interest”) respecting the Project, and any amendments
to such ground lease or mortgage, at the election of the ground lessor or mortgagee (a
“Security Holder”) as the case may be, effected by notice to Tenant in the manner provided
in this Lease. The subordination shall be effective upon such notice, but at the request of
Landlord or such Security Holder, Tenant shall within fifteen (15) days after the request, execute
and deliver to the requesting party any reasonable documents provided to evidence the
subordination. Any mortgagee has the right, at its sole option, to subordinate its mortgage to the
terms of this Lease, without notice to, nor the consent of, Tenant. With respect to any Superior
Interest to which this Lease is now or shall hereafter become subordinate, Landlord shall use
commercially reasonable efforts to obtain from the Security Holder of such Superior Interest, for
the benefit of Tenant, a non-disturbance agreement, in the customary form of such Security Holder,
providing generally that as long as Tenant is not in default under this Lease, this Lease will not
be terminated if such Security Holder acquires title to the Building or Project by reason of
foreclosure proceedings, acceptance of a deed in lieu of foreclosure, or termination of the
leasehold interest of Landlord, provided that Tenant attorns to such Security Holder in accordance
with its requirements. Except for making such commercially reasonable efforts, Landlord will be
under no duty or obligation hereunder with respect to any Superior Interest, nor will the failure
or refusal of the Security Holder of any Superior Interest to grant a non-disturbance agreement
render Landlord liable to Tenant, or affect this Lease, in any

 - 33 - 

 

manner. Tenant will bear all costs and expenses (including attorneys’ fees) of the Security
Holder of such Superior Interest in connection with Landlord’s reasonable efforts to obtain a
non-disturbance agreement. Notwithstanding any provision in this Lease to the contrary, if Tenant
fails to execute and deliver the documents requested under this Section 16.1 within the fifteen
(15) day period, Tenant’s failure to execute and deliver such documents within ten (10) days after
notice to Tenant of Tenant’s failure to execute and deliver the same within the fifteen (15) day
period shall constitute a default under Section 12 above.

          16.2 Termination of Ground Lease or Foreclosure of Mortgage. If any ground lease is
terminated or mortgage foreclosed or deed in lieu of foreclosure given and the Security Holder or
purchaser at a foreclosure sale shall thereby become the owner of the Project, Tenant shall attorn
to such Security Holder or purchaser without any deduction or setoff by Tenant, and this Lease
shall continue in effect as a direct lease between Tenant and such Security Holder or purchaser.
The Security Holder or purchaser shall be liable as Landlord only during the tune such Security
Holder or purchaser is the owner of the Project. At the request of Landlord or any Security
Holder, Tenant shall execute and deliver within fifteen (15) days after the request any document
furnished by the requesting party to evidence Tenant’s agreement to attorn.

          16.3 Security Deposit. Any Security Holder shall be responsible for the return of any
security deposit by Tenant only to the extent the security deposit, if any, is received by such
Security Holder.

          16.4 Notice and Right to Cure. Tenant agrees to send by registered or certified mail
to any Security Holder identified in a notice from Landlord to Tenant, a copy of any notice of
default sent by Tenant to Landlord. If Landlord fails to cure such definite within the required
time period under this Lease, but any Security Holder begins to cure within ten (10) days after
such period and proceeds diligently to complete such cure, then such Security Holder shall have
such additional time as is necessary to complete such cure, including any time necessary to obtain
possession if possession is necessary to cure, and Tenant shall not begin to enforce its remedies
so long as the cure is being diligently pursued.

          16.5 Definitions. As used in this Section 16, “mortgage” shall include “trust deed”
and “deed of trust”; “mortgagee” shall include “trustee”, ‘beneficiary” and the mortgagee of any
ground lessee; and “ground lessor”, “mortgagee”, and “purchaser at a foreclosure sale” shall
include, in each case, all of its successors and assigns, however remote.

     17. ASSIGNMENT AND SUBLEASE.

          17.1 In General. Tenant shall not, without Landlord’s prior written consent, in each
case: (a) make or allow any assignment or transfer, by operation of law or otherwise, of any part
of Tenant’s interest in this Lease, (b) sublet any part of the Premises, or (c) permit anyone other
than Tenant and its employees to occupy any part of the Premises (all
of the foregoing are

 - 34 - 

 

hereinafter sometimes referred to individually as a “Transfer”, and collectively as
“Transfers”, any person to whom any Transfer is made or sought to be made is hereinafter
sometimes referred to as a “Transferee”, and any person by whom any Transfer is made or
sought to be made is hereinafter sometimes referred to as a “Transferor”). Tenant shall
remain primarily liable for all of its obligations under this Lease, notwithstanding any Transfer.
No consent granted by Landlord shall be deemed to be a consent to any subsequent Transfer. Tenant
shall pay all of Landlord’s attorneys’ fees and other expenses incurred in connection with any
consent requested by Tenant or in considering any proposed Transfer, up to a maximum amount of Two
Thousand Five Hundred Dollars ($2,500.00) per proposed Transfer (unless there is a dispute in
connection with the proposed Transfer, in which event the provisions of Section 25.26 below shall
apply). Any Transfer without Landlord’s prior written consent shall be void. Except for a
Permitted Transfer (as defined below), if Tenant shall assign this Lease or sublet or otherwise
Transfer the Premises, or any portion thereof, any rights of Tenant to renew this Lease, to extend
the Term or to lease additional space in the Project shall be extinguished thereby and will not be
transferred to the Transferee, all such rights being personal to the Tenant named herein. In
addition, Tenant shall not, without Landlord’s prior written consent, which Landlord may withhold
in its sole discretion, mortgage, pledge or encumber this Lease, the term or estate hereby granted
or any interest hereunder.

          17.2 Landlord’s Consent. Landlord will not unreasonably withhold its consent to any
proposed Transfer. It shall be reasonable for Landlord to withhold its consent to any Transfer if
(a) Tenant is in default under this Lease, (b) the financial responsibility, nature of business,
and character of the proposed Transferee are not all reasonably satisfactory to Landlord, (c) in
the reasonable judgment of Landlord the purpose for which the Transferee intends to use the
Premises (or a portion thereof) is not in keeping with Landlord’s standards for the Building or are
in violation of the terms of this Lease or any other leases in the Project, (d) the proposed
Transferee is a government entity, (e) the proposed Transfer is between a Transferee of Tenant and
a third party, or (f) the proposed effective rent under the sublease or other Transfer is less than
eighty percent (80%) of the effective rent then being quoted by Landlord for comparable space in
the Project for a comparable term, calculated using a present value analysis; provided, however,
that if no comparable space in the Project is available for lease for a comparable term at the time
of the proposed Transfer, then the foregoing restriction on the proposed effective rent under the
sublease or other Transfer shall be inapplicable. The foregoing shall not exclude any other
reasonable basis for Landlord to withhold its consent

          17.3 Procedure. Tenant shall notify Landlord of any proposed Transfer at least
twenty-five (25) days prior to its proposed effective date. The notice shall include the name and
address of the proposed Transferee, its corporate affiliates in the case of a corporation and its
partners in the case of a partnership, a description of the portion of the Premises that is subject
to the Transfer (the “Transfer Premises”), a calculation of the Transfer Premium (as
defined in Section 17.6 below) payable in connection with the Transfer, an executed copy of the
proposed Transfer agreement, and sufficient information to permit Landlord to determine the
financial responsibility and character of the proposed Transferee (including, without limitation,
the most

 - 35 - 

 

recent financial statements for the proposed Transferee). Landlord shall notify Tenant
whether it will approve the Transfer, disapprove the Transfer, or recapture the Premises in
accordance with the terms of Section 17.7 below, within twenty (20) days after receipt of the
foregoing information. As a condition to the effectiveness of any assignment of this Lease, the
assignee shall execute and deliver to Landlord, at least ten (10) days prior to the effective date
of the assignment, Landlord’s standard form of Consent to Assignment, providing for, among other
things, an assumption of all of the obligations of Tenant under this Lease. As a condition to the
effectiveness of any other Transfer, Transferee shall execute and deliver to Landlord, at least ten
(10) days prior to the effective date of such Transfer, Landlord’s standard consent form,
providing, among other things, (a) the Transferee’s obligation to indemnify Landlord and the other
Landlord Parties consistent with Tenant’s indemnification obligations in Section 8.2 above, and (b)
the Transferee’s agreement that any such Transfer shall be subordinate and subject to the
provisions of this Lease, and if this Lease shall be terminated during the term of any such
Transfer, Landlord shall have the right to: (i) treat such Transfer as cancelled and repossess the
Transfer Premises by any lawful means, or (ii) require that the Transferee attorn to and recognize
Landlord as its landlord under any such Transfer. If Tenant shall default and fail to cure within
the time permitted for cure under Section 12 above, Landlord is hereby irrevocably authorized, as
Tenant’s agent and attorney-in-fact, to direct any Transferee to make all payments under or in
connection with the Transfer directly to Landlord (which Landlord shall apply towards Tenant’s
obligations under this Lease) until such default is cured.

          17.4 Change of Management or Ownership. Subject to Section 17.5 below, and except in
the case of a public offering of Tenant’s stock at any time the shares of Tenant are publicly
traded on a national exchange, any transfer of the direct or indirect power to affect the
management or policies of Tenant or direct or indirect change in 50% or more of the ownership
interest in Tenant shall constitute an assignment of this Lease.

          17.5 Permitted Transfers. If Tenant is not then in default of this Lease, Tenant may
assign this Lease or sublet any portion of the Premises (hereinafter collectively referred to as a
“Permitted Transfer”) to (a) a parent or subsidiary of Tenant, or an entity under common
control with Tenant, (b) any successor entity to Tenant by way of merger, consolidation or other
non-bankruptcy corporate reorganization, or (iii) an entity which acquires all or substantially all
of Tenants assets (collectively, “Permitted Transferees”, and, individually, a
“Permitted Transferee”); provided that (1) at least ten (10) business days prior to the
Transfer, Tenant notifies Landlord of such Transfer, and supplies Landlord with any documents or
information reasonably requested by Landlord regarding such Transfer or Permitted Transferee,
including, but not limited to, copies of the sublease or instrument of assignment and copies of
documents establishing to the reasonable satisfaction of Landlord that the transaction in question
is one permitted under this Section 17.5, (2) at least ten (10) business days prior to the
Transfer, Tenant furnishes Landlord with a written document executed by the proposed Permitted
Transferee in which such entity assumes all of Tenant’s obligations under this Lease with respect
to the Transfer Premises, (3) in the case of a Transfer pursuant to clause (b) above, the successor
entity must have a tangible net worth at the time of the Transfer (i.e., not including intangible
assets in the calculation, such as goodwill, patents,

 - 36 - 

 

copyrights, and trademarks) computed in accordance with generally accepted accounting
principles (“Net Worth”) that is at least equal to the greater of (i) the Net Worth of
Tenant immediately prior to such Transfer, or (ii) the Net Worth on the date of this Lease of the
original named Tenant, and (4) any such proposed Transfer is made for a good faith operating
business purpose and not, whether in a single transaction or in a series of transactions, be
entered into as a subterfuge to evade the obligations and restrictions relating to Transfers set
forth in this Section 17.

     17.6 Transfer Premium.

               (a) If Landlord consents to a Transfer, as a condition thereto which the parties hereby agree
is reasonable, Landlord shall be entitled to receive, as Additional Rent hereunder, fifty percent
(50%) of any Transfer Premium derived from such Transfer. As used herein, the term “Transfer
Premium” means (i) in the case of an assignment, any consideration (including, without
limitation, payment for leasehold improvements) paid by the assignee on account of such assignment,
and (ii) in the case of any other Transfer, all rent, additional rent or other consideration paid
by the Transferee to the Transferor pursuant to such Transfer in excess of the base rent and
additional rent payable by such Transferor during the term of the Transfer on a per rentable square
foot basis, after deducting, on an amortized basis, without interest, over the term of the
Transfer, any brokerage commission (not to exceed commissions typically paid in the market at the
time of such subletting or assignment), reasonable attorneys’ fees, and the reasonable cost of Work
made to the Transfer Premises to effect the Transfer (not to exceed Four Dollars ($4.00) per
rentable square foot of the Transfer Premises) paid by Tenant in connection with the Transfer
(“Recoverable Expenses”), unless the deduction of such Recoverable Expenses is waived by
Transferor pursuant to Section 17.6(b) below. Payment of foe portion of the Transfer Premium due
Landlord hereunder shall be a joint and several obligation of Tenant and the Transferee, and shall
be made to Landlord as follows: (1) in the case of an assignment, the Transferor shall pay the
portion of the Transfer Premium owing to Landlord within ten (10) business days after the
Transferor receives the consideration described in clause (i) above; and (2) in the case of any
other Transfer, on the first day of each month during the term of the Transfer, the Transferee
shall pay directly to Landlord the amount by which the rent, additional rent or other consideration
due from the Transferee for such month exceeds (A) the base rent and additional rent payable by the
applicable Transferor for said month which is allocable to the Transfer Premises plus (B) the
amortized amount of Recoverable Expenses allocated to such month, unless such Recoverable Expenses
are waived by Transferor pursuant to Section 17.6(b).

               (b) Within sixty (60) days after the effective date of any Transfer, Transferor shall provide
Landlord a written statement, together with reasonably detailed invoices therefor, certifying the
total amount of Recoverable Expenses in connection with any Transfer and Tenant’s calculation of
the Transfer Premium. If Transferor fails to provide such statement and invoices to Landlord
within the sixty (60) day period, Transferor shall be deemed to have waived the deduction of
Recoverable Expenses in determining the Transfer Premium. Landlord or its authorized
representatives shall have the right at all reasonable times to audit the books, records and

 - 37 - 

 

papers of Tenant, and any other Transferor, relating to a Transfer, and shall have the right
to make copies thereof. If the Transfer Premium respecting any Transfer shall be found to be
understated, Tenant shall within ten (10) business days after demand pay the deficiency, and if
understated by more than two percent (2%), Tenant shall pay Landlord’s costs of such audit.

          17.7 Recapture. In the case of a proposed assignment, sublease or other Transfer,
Landlord may terminate this Lease as to the Transfer Premises by giving Tenant written notice (the
“Recapture Noticed”) within twenty (20) days after Landlord’s receipt of the information
required under Section 17.3. Such termination shall be effective as of the termination date set
forth in Landlord’s Recapture Notice, and all obligations of Landlord and Tenant under this Lease
as to such terminated space shall expire as of such termination date, except those that expressly
survive any termination of this Lease. In the event of a recapture by Landlord, if this Lease
shall be canceled with respect to less than the entire Premises, the Rent reserved herein shall be
prorated on the basis of the number of rentable square feet retained by Tenant in proportion to the
number of rentable square feet contained in the Premises, and this Lease as so amended shall
continue thereafter in full force and effect, and upon request of either party, the parties shall
execute written confirmation of the same.

          17.8 Tenant Remedies. Notwithstanding anything to the contrary in this Lease, if
Tenant claims that Landlord has unreasonably withheld or delayed its consent under this Section 17
or otherwise has breached or acted unreasonably under this Section 17, Tenant’s sole remedy shall
be declaratory judgment and an injunction for the relief sought without any monetary damages, and
Tenant hereby waives all other remedies, including, without limitation, any right provided under
California Civil Code Section 1995.310 or other applicable laws to terminate this Lease. Tenant
shall indemnify, defend and hold harmless Landlord from any and all Claims involving any third
party or parties (including .without limitation Tenant’s broker or proposed transferee) who claim
they were damaged by Landlord’s withholding or conditioning of Landlord’s consent, unless it is
determined by a court of competent jurisdiction that Landlord has withheld or conditioned its
consent to Tenant’s proposed Transfer in bad faith.

     18. CONVEYANCE BY LANDLORD. If Landlord shall at any time transfer its interest in
the Project or this Lease, Landlord shall be released from any obligations occurring after such
transfer, except the obligation to return to Tenant any security deposit not delivered to its
transferee, and Tenant shall look solely to Landlord’s successors for performance of such
obligations. This Lease shall not be affected by any such transfer.

     19. ESTOPPEL CERTIFICATE. Each party shall, within ten (10) days after receiving a
request from the other party, execute, acknowledge in recordable form, and deliver to the other
parry or its designee a certificate stating, subject to a specific statement of any applicable
exceptions, that this Lease as amended to date is in full force and effect, that Tenant is paying
Rent and other charges on a current basis, and that to the best of the knowledge of the certifying
party, the other party has committed no uncured defaults and has no offsets or claims. The
certifying party may also be

 - 38 - 

 

required to state the date of commencement of payment of Rent, the Commencement Date, the
Termination Date, the Base Rent, the current Operating Cost Share Rent and Tax Share Rent
estimates, the status of any improvements required to be completed by Landlord, the amount of any
security deposit, and such other matters as may be reasonably requested. Tenant’s failure to
execute or deliver an estoppel certificate in the required time period shall constitute an
acknowledgment by Tenant that the statements included in the estoppel certificate are true and
correct, without exception. Tenant’s failure to execute or deliver an estoppel certificate or
other document or instrument required under this Section 19 in a timely manner shall be a material
breach of this Lease.

     20. LEASE DEPOSIT.

          20.1 Prepaid Rent and Security Deposit. Tenant shall deposit with Landlord on the
date Tenant executes and delivers this Lease the cash sums set forth in the Schedule for both
Prepaid Rent and Security Deposit (collectively, the “Lease Deposit”). The Prepaid Rent
shall be applied by Landlord against the first full monthly installment of Base Rent payable
hereunder. The Security Deposit shall be held by Landlord as security for the faithful performance
by Tenant of all its obligations under this Lease.

          20.2 Application of Security Deposit. Tenant agrees that, if Tenant fails to pay any
Rent, or otherwise defaults with respect to any provision of this Lease, Landlord may (but shall
not be obligated to), and without prejudice to any other remedy available to Landlord, use, apply
or retain all or any portion of the Security Deposit for the payment of any Rent in default or for
the payment of any other sum to which Landlord may become obligated by reason of Tenant’s default,
or to compensate Landlord for any loss or damage which Landlord may suffer thereby, including,
without limitation, prospective damages and damages recoverable pursuant to California Civil Code
Section 1951.2. If Landlord uses or applies all or any portion of the Security Deposit as provided
above, Tenant shall, within five (5) days after demand therefor, deposit cash with Landlord in an
amount sufficient to restore the Security Deposit to the full amount thereof, and Tenant’s failure
to do so shall, at Landlord’s option, be an Event of Default under this Lease with no opportunity
to cure. If Tenant performs all of Tenant’s obligations hereunder, the Security Deposit, or so
much thereof as has not theretofore been applied by Landlord, shall be returned to Tenant (or, at
Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder) within thirty (30)
days following the later to occur of (a) the expiration of the Term of this Lease or (b) Tenant’s
vacation and surrender of the Premises in accordance with the requirements of this Lease. Tenant
waives the provisions of California Civil Code Section 1950.7, or any similar or successor laws now
or hereinafter in effect, that restrict Landlord’s use or application of the Deposit, or that
provide specific time periods for return of the Deposit. Landlord shall not be deemed to hold the
Security Deposit in trust nor be required to keep the Security Deposit separate from its general
funds, and Tenant shall not be entitled to any interest on the Security Deposit. The Security
Deposit shall not be construed as an advance payment of Rent nor liquidated damages, and if
Landlord’s claims hereunder exceed the Security Deposit, Tenant shall remain liable for the balance
of such claims.

 - 39 - 

 

          20.3 Transfer of Security Deposit. If Landlord transfers its interest in the Project
or this Lease, Landlord may transfer the Security Deposit to its transferee. If Landlord so
transfers the Security Deposit, Landlord shall have no further obligation to return the Security
Deposit to Tenant, and Tenant’s right to the return of the Security Deposit shall apply solely
against Landlord’s transferee.

     21. TENANTS PERSONAL PROPERTY AND FIXTURES. Intentionally Omitted.

     22. NOTICES. All notices, consents, approvals and similar communications to be given
by one party to the other under this Lease, shall be given in writing, mailed or personally
delivered as follows:

          22.1 Landlord. To Landlord as follows:

CarrAmerica Realty Operating Partnership, L.P.

1810 Gateway Drive, Suite 150

San Mateo, CA 94404

Attn: Market Officer

with a copy to:

CarrAmerica Realty Operating Partnership, L.P.

1850 K Street, N.W., Suite 500

Washington, D.C. 20006

Attn: Lease Administration

or to such other person at such other address as Landlord may designate by notice to Tenant

          22.2 Tenant. To Tenant as follows:

StarVox Communications, Inc.

2728 Orchard Parkway

San Jose, CA 95134

Attn: Chief Financial Officer

or to such other person at such other address as Tenant may designate by notice to Landlord.

     Mailed notices shall be sent by United States certified or registered mail, or by a reputable
national overnight courier service, postage prepaid. Mailed notices shall be deemed to have been
given on the earlier of actual delivery or three (3) business days after posting in the United
States mail in the case of registered or certified mail, and one (1) business day in the case of
overnight courier. Tenant hereby appoints as its agent to receive the service of process in any
action, or any notice required by law to be given prior to the commencement of any action, for
recovery of

 - 40 - 

 

possession of the Premises or any part thereof, and to receive service of all notices
hereunder (including dispossessory or distraint proceedings and notices thereunder), the person in
charge of or occupying the Premises at the time, and, if no person shall be in charge of or
occupying the same, then such service may be made by attaching the same on the main entrance of the
Premises.

     23. QUIET POSSESSION. So long as Tenant shall perform all of its obligations under
this Lease, Tenant shall enjoy peaceful and quiet possession of the Premises against any party
claiming through the Landlord, subject to all of the terms of this Lease.

     24. REAL ESTATE BROKERS. Tenant represents to Landlord that Tenant has not dealt with
any real estate broker with respect to this Lease except for any broker(s) listed in the Schedule,
and no other broker is in any way entitled to any broker’s fee or other payment in connection with
this Lease. Tenant shall indemnify and defend Landlord against any Claims by any other broker or
third party for any payment of any kind in connection with this Lease.

     25. MISCELLANEOUS.

          25.1 Successors and Assigns. Subject to the limits on Tenant’s assignment contained
in Section 17, the provisions of this Lease shall be binding upon and inure to the benefit of all
successors and assigns of Landlord and Tenant.

          25.2 Date Payments Are Due. Except for payments to be made by Tenant under this Lease
which are due upon demand or are due in advance (such as Base Rent), and except as otherwise
expressly provided in this Lease, Tenant shall pay to Landlord any amount for which Landlord
renders a statement of account within ten (10) business days after Tenant’s receipt of Landlord’s
statement.

          25.3 Meaning of “Landlord”, “Re-Entry”, “including” and “Affiliate”. The term
“Landlord” means only the owner of the Project and the lessor’s interest in this Lease from time to
time. The words “re-entry” and “re-enter” are not restricted to their technical legal meaning.
The words “including” and similar words shall mean “without limitation.” The word “affiliate”
shall mean a person or entity controlling, controlled by or under common control with the
applicable entity. “Control” shall mean the power directly or indirectly, by contract or
otherwise, to direct the management and policies of the applicable entity.

          25.4 Time of the Essence. Time is of the essence of each provision of this Lease.

          25.5 No Option. The submission of this Lease to Tenant for review or execution does
not create an option or constitute an offer to Tenant to lease the Premises on the terms and
conditions contained herein or a reservation of the Premises in favor of Tenant, and this Lease
shall not become effective unless and until it has been executed and delivered by both Landlord and
Tenant

 - 41 - 

 

          25.6 Severability. If any provision of this Lease is determined to be invalid,
illegal or unenforceable, then such provision will be enforced to the maximum extent possible and
the other provisions will remain fully effective and enforceable.

          25.7 Governing Law. This Lease shall be governed in all respects by the laws of the
state in which the Project is located, without regard to the principles of conflicts of laws.

          25.8 Lease Modification. Tenant agrees to modify this Lease in any way requested by a
mortgagee which does not cause increased expense to Tenant or otherwise materially adversely affect
Tenant’s interests under this Lease.

          25.9 No Oral Modification. No modification of this Lease shall be effective unless it
is a written modification signed by both parties.

          25.10 Landlord’s Right to Cure. Landlord may cure any material default by Tenant,
after applicable notice and cure periods, if any (except in the case of an emergency, in which case
Landlord may cure a default by Tenant immediately); any expenses incurred shall constitute
Additional Rent due from Tenant on demand by Landlord.

          25.11 Captions. The captions used in this Lease shall have no effect on the
construction of this Lease.

          25.12 Authority. Landlord and Tenant each represents to the other that it has full
power and authority to execute and perform this Lease.

          25.13 Landlord’s Enforcement of Remedies. Landlord may enforce any of its remedies
under this Lease either in its own name or through an agent.

          25.14 Entire Agreement. This Lease, together with all Exhibits, constitutes the
entire agreement between the parties. No representations or agreements of any kind have been made
by either party which are not contained in this Lease.

          25.15 Landlord’s Title. Landlord’s title shall always be paramount to the interest of
Tenant, and nothing in this Lease shall empower Tenant to do anything which might in any way impair
Landlord’s title.

          25.16 Light and Air Rights. Landlord does not grant in this Lease any rights to light
and air in connection with Project. Landlord reserves to itself, the Project, the Building below
the improved floor of each floor of the Premises, the Building above the ceiling of each floor of
the Premises, the exterior of the Premises and the areas on the same floor outside the Premises,
along with the areas within the Premises required for the installation and repair of utility lines
and other items required to serve other tenants of the Building.

 - 42 - 

 

          25.17 Singular and Plural: Joint and Several Liability. Wherever appropriate in this
Lease, a singular term shall be construed to mean the plural where necessary, and a plural term the
singular. For example, if at any time two parties shall constitute Landlord or Tenant, then the
relevant term shall refer to both parties together. If more than one individual or entity
comprises Tenant, the obligations imposed on each individual or entity that comprises Tenant under
this Lease shall be joint and several.

          25.18 No Recording by Tenant. Tenant shall not record in any public records any
memorandum or any portion of this Lease.

          25.19 Exclusivity. Landlord does not grant to Tenant in this Lease any exclusive
right except the right to occupy the Premises.

          25.20 No Construction Against Drafting Party. The rule of construction that
ambiguities are resolved against the drafting party shall not apply to this Lease.

          25.21 Survival. The waivers of claims or rights, the releases and the obligations of
Tenant under this Lease to indemnify, protect, defend and hold harmless Landlord and other Landlord
Parties shall survive the expiration or earlier termination of this Lease, and so shall all other
obligations or agreements of Landlord or Tenant hereunder which by then- terms survive the
expiration or earlier termination of this Lease.

          25.22 Rent Not Based on Income. No Rent or other payment in respect of the Premises
shall be based in any way upon net income or profits from the Premises. Tenant may not enter into
or permit any sublease or license or other agreement in connection with the Premises which provides
for a rental or other payment based on net income or profit.

          25.23 Building Manager and Service Providers. Landlord may perform any of its
obligations under this Lease through its employees or third parties hired by the Landlord.

          25.24 Late Charge and Interest on Late Payments. Without limiting the provisions of
Section 12.1, if Tenant fails to pay any installment of Rent or other charge to be paid by Tenant
pursuant to this Lease within five (5) business days after the same becomes due and payable, then
Tenant shall pay a late charge equal to the greater of five percent (5%) of the amount of such
payment or $250. In addition, interest shall be paid by Tenant to Landlord on any late payments of
Rent from the date due until paid at the rate provided in Section 24(b). Such late charge and
interest shall constitute Additional Rent due and payable by Tenant to Landlord upon the date of
payment of the delinquent payment referenced above.

          25.25 Tenant’s Financial Statements. Within ten (10) days after Landlord’s written
request therefor, but not more than once in any twelve (12) month period, Tenant shall deliver to
Landlord, certified by an officer of Tenant as being a true and correct copy in all material
respects, the current audited annual and quarterly financial statements of Tenant, and annual
audited financial

 - 43 - 

 

statements of the two (2) years prior to the current year’s financial statements, each with an
opinion of a certified public accountant, including a balance sheet and profit and loss statement
for the most recent prior year, all prepared in accordance with generally accepted accounting
principles consistently applied. Tenant hereby authorizes Landlord to obtain one or more credit
reports on Tenant at any time, and shall execute such further authorizations as Landlord may
reasonably require in order to obtain a credit report.

          25.26 Attorneys’ Fees. In any arbitration, quasi-judicial or administrative
proceedings or any action in any court of competent jurisdiction, brought by either party to
enforce any covenant or any of such party’s rights or remedies under this Lease, including any
action for declaratory relief, or any action to collect any payments required under this Lease or
to quiet title against the other party, the prevailing party shall be entitled to reasonable
attorneys’ fees and all costs, expenses and disbursements in connection with such action, including
the costs of reasonable investigation, preparation and professional or expert consultation, which
sums may be included in any judgment or decree entered in such action in favor of the prevailing
party. In addition, Tenant shall pay the attorneys’ fees and other costs Landlord incurs in
enforcing this Lease where an action or proceeding is not brought.

          25.27 Other Improvements. If portions of the Project or property adjacent to the
Project (collectively, the “Other Improvements”) are owned by an entity other than
Landlord, Landlord, at its option, may enter into an agreement with the owner or owners of any of
the Other Improvements to provide (a) for reciprocal rights of access, use and/or enjoyment of the
Project and the Other Improvements, (b) for the common management, operation, maintenance,
improvement and/or repair of all or any portion of the Project and all or any portion of the Other
Improvements, (c) for the allocation of a portion of Operating Costs and Taxes to the Other
Improvements and the allocation of a portion of the operating expenses and taxes for the Other
Improvements to the Project, (d) for the use or improvement of the Other Improvements and/or the
Project in connection with the improvement, construction, and/or excavation of the Other
Improvements and/or the Project, and (e) for any other matter which Landlord deems appropriate or
necessary. Nothing contained herein shall be deemed or construed to limit or otherwise affect
Landlord’s right to sell all or any portion of the Project or any other of Landlord’s rights
described in this Lease.

          25.28 Security. Landlord shall be the sole determinant of the type and amount of
security services to be provided to the Project, if any, and Tenant hereby acknowledges and agrees
that Landlord shall have no obligation to provide, and shall not in any manner be liable for, any
security to the Project In all events, Landlord shall not be liable to Tenant, and Tenant hereby
waives any claim against Landlord, for (a) any unauthorized or criminal entry of third parties into
the Premises, the Building or the Project, (b) any damage to persons, or (c) any loss of property
in and about the Premises, the Building or the Project, by or from any unauthorized or criminal
acts of third parties, regardless of any action, inaction, failure, breakdown, malfunction and/or
insufficiency of the security services provided by Landlord.

 - 44 - 

 

     26. UNRELATED BUSINESS INCOME. If Landlord is advised by its counsel at any time that
any part of the payments by Tenant to Landlord under this Lease may be characterized as unrelated
business income under the United States Internal Revenue Code and its regulations, then Tenant
shall enter into any amendment proposed by Landlord to avoid such income, so long as the amendment
does not require Tenant to make more payments or accept fewer services from Landlord, than this
Lease provides.

     27. BUILDING RENOVATIONS. It is specifically understood and agreed that Landlord has
made no representation or warranty to Tenant and has no obligation and has made no promises to
alter, remodel, improve, renovate, repair or decorate the Premises, Building, or any part thereof
and that no representations respecting the condition of the Premises or the Building have been made
by Landlord to Tenant except as specifically set forth herein or in the Tenant Improvement
Agreement However, Tenant hereby acknowledges that Landlord may during the Lease Term renovate,
improve, alter, or modify (collectively, the “Renovations”) the Project, the Building
and/or the Premises including without limitation the parking structure, common areas, systems and
equipment, roof, and structural portions of the same, which Renovations may include, without
limitation, (a) installing sprinklers in the Building common areas and tenant spaces, (b) modifying
the common areas and tenant spaces to comply with Governmental Requirements, including regulations
relating to the physically disabled, seismic conditions, and building safety and security, and (c)
installing new floor covering, lighting, and wall coverings in the Building common areas, and in
connection with any Renovations, Landlord may, among other tilings, erect scaffolding or other
necessary structures in the Building, limit or eliminate access to portions of the Project,
including portions of the common areas, or perform work in the Building, which work may create
noise, dust or leave debris in the Building. Tenant hereby agrees that such Renovations and
Landlord’s actions in connection with such Renovations shall in no way constitute a constructive
eviction of Tenant nor entitle Tenant to any abatement of Rent. Landlord shall have no
responsibility or for any reason be liable to Tenant for any direct or indirect injury to or
interference with Tenant’s business arising from’ the Renovations, nor shall Tenant be entitled to
any compensation or damages from Landlord for loss of the use of the whole or any part of the
Premises or of Tenant’s personal property or improvements resulting from the Renovations or
Landlord’s actions in connection with such Renovations, or for any inconvenience or annoyance
occasioned by such Renovations or Landlord’s actions.

     28. HAZARDOUS SUBSTANCES.

          28.1 Prohibition Against Hazardous Substances.

               (a) Except for de minimis quantities of general office supplies customarily used by office
tenants in the ordinary course of their business, such as copier toner, liquid paper, glue, ink and
cleaning solvents (which supplies Tenant agrees to use in compliance with all applicable
Governmental Requirements), Tenant shall not cause or permit any Hazardous Substances to be brought
upon, produced, stored, used, discharged or disposed of in or near the Project without

 - 45 - 

 

Landlord’s prior written consent, which Landlord may give or withhold in its sole discretion.
Any handling, transportation, storage, treatment, disposal or use of any Hazardous Substances in or
about the Project by Tenant, its agents, employees, contractors or invitees shall strictly comply
with all applicable Governmental Requirements. Tenant shall be solely responsible for obtaining
and complying with all permits necessary for the maintenance and operation of its business,
including, without limitation, all permits governing the use, handling, storage, treatment,
transport, discharge and disposal of Hazardous Substances. Tenant shall indemnify, defend and hold
Landlord and the Landlord Parties harmless from and against any Claims (including, without
limitation, diminution in value of the Premises or the Project, damages for the loss or restriction
on use of leasable space or of any amenity of the Premises or the Project, damages arising from any
adverse impact on marketing of space in the Project, Remedial Work, and sums paid in settlement of
claims) which result from or arise out of the use, storage, treatment, transportation, release, or
disposal of any Hazardous Substances on or about the Premises during the Term and on or about the
Project outside of the Premises by Tenant or any Tenant Parties.

               (b) Landlord shall have the right, at any time, but not more than two (2) times in any
calendar year (unless Landlord has reasonable cause to believe that Tenant has failed to fully
comply with the provisions of this Section 28, or unless required by any lender or governmental
agency), to inspect the Premises and conduct tests and investigations to determine whether Tenant
is in compliance with the provisions of this Section 28. The costs of all such inspections, tests
and investigations shall be borne solely by Tenant. The foregoing rights granted to Landlord shall
not, however, create (i) a duty on Landlord’s part to inspect, test, investigate, monitor or
otherwise observe the Premises or the activities of Tenant or any Tenant Party with respect to
Hazardous Substances, including, but not limited to, Tenant’s operation, use or remediation
thereof, or (ii) liability on the part of Landlord or any Landlord Party for Tenant’s use, storage,
treatment, transportation, release, or disposal of any Hazardous Substances, it being understood
that Tenant shall be solely responsible for all liability in connection therewith.

          28.2 Landlord Notification. Tenant shall promptly provide Landlord with complete
copies of all documents, correspondence and other written materials directed to or from, or
relating to, Tenant concerning environmental issues at the Premises or the Project, including,
without limitation, documents relating to the release, potential release, investigation,
compliance, cleanup and abatement of Hazardous Substances, and any claims, causes of action or
other legal documents related to same. Within twenty-four (24) hours of any unauthorized release,
spill or discharge of Hazardous Substances, in, on, or about the Premises or Project, Tenant shall
provide written notice to Landlord fully describing the event. Tenant shall also provide Landlord
with a copy of any document or correspondence submitted by or on behalf of Tenant to any regulatory
agency as a result of or in connection with the unauthorized release, spill or discharge. Within
twenty-four (24) hours of receipt by Tenant of any warning, notice of violation, permit suspension
or similar disciplinary measure relating to Tenant’s actual or alleged failure to comply with any
environmental law, rule, regulation, ordinance or permit, Tenant shall provide written notice to
Landlord.

 - 46 - 

 

          28.3 Remedial Work. If any investigation or monitoring of site conditions or any
clean-up, containment, restoration, removal or remediation of Hazardous Substances (collectively,
“Remedial Work”) is required under any Governmental Requirements as a result of any
handling, transportation, storage, production, use, discharge, disposal or release of Hazardous
Substances by Tenant, its agents, employees, contractors or invitees, then Tenant shall perform or
cause to be performed the Remedial Work in compliance with Governmental Requirements or, at
Landlord’s option, Landlord may cause such Remedial Work to be performed and Tenant shall reimburse
Landlord for the reasonable costs thereof within thirty (30) days after demand therefor. All
Remedial Work performed by Tenant shall be performed by one or more contractors, selected by Tenant
and approved in advance in writing by Landlord, and under the supervision of a consulting engineer
selected by Tenant and approved in advance in writing by Landlord. All costs and expenses of such
Remedial Work shall be paid by Tenant, including, without limitation, the charges of such
contractors), the consulting engineer and Landlord’s reasonable attorneys’ and experts’ fees and
costs incurred in connection with monitoring or review of such Remedial Work.

          28.4 Environmental Questionnaire. Prior to execution of this Lease, Tenant shall
complete, execute and deliver to Landlord an Environmental Questionnaire and Disclosure Statement.
The completed Environmental Questionnaire shall be deemed incorporated into this Lease for all
purposes, and Landlord shall be entitled to rely fully on the information contained therein.
Tenant shall immediately update and resubmit to Landlord the Environmental Questionnaire if
changes occur in the nature, content, handling, storage, use, treatment, transport, discharge, or
disposal of the Hazardous Substances described therein. Attached hereto as Exhibit E is a
form of Environmental Questionnaire to be executed in accordance with the foregoing provision.

          28.5 Survival. Tenant’s obligations under this Section 28 shall survive the
expiration or earlier termination of this Lease until all Claims within the scope of this Section
28 are fully, finally, and absolutely barred by the applicable statutes of limitations. If it is
determined by Landlord that the condition of all or any portion of the Premises, the Building or
the Project is not in compliance with the provisions of this Section 28, including, but not limited
to all applicable Governmental Requirements relating to Hazardous Substances, at the expiration or
earlier termination of this Lease, then Landlord, in its sole discretion, may require Tenant to
hold over possession of the Premises until Tenant can surrender the Premises to Landlord in the
condition required under Section 14 above and in full compliance with the provisions of this
Section 28. The burden of proof under this Section 28.5 shall be upon Tenant For purposes of
Section 14, the term “normal wear and tear” shall not include any deterioration h the condition or
diminution of the value of any portion of the Premises, the Building or the Project in any manner
whatsoever related directly or indirectly to Hazardous Substances. Any such holdover by Tenant
shall be with Landlord’s consent, will not be terminable by Tenant in any event or circumstance and
will otherwise be subject to Section 15 above.

          28.6 Definition of “Hazardous Substances”. “Hazardous Substances” means any
hazardous or toxic substances, materials or waste which are or become regulated by any local

 - 47 - 

 

government authority, the state in which the Project is located or the United States
government, including those substances described in the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et seq., the
Resource Conservation and Recovery Act, as amended, 42 U.S.C. Section 6901 et seq., any
other applicable federal, state or local law, and the regulations adopted under these laws.

     29. EXCULPATION. Landlord shall have no personal liability under this Lease; its
liability shall be limited solely and exclusively to an amount which is equal to the interest of
Landlord in the Project, including the rents and other income from the Project In no event shall
Landlord’s liability extend to any other property or assets of Landlord, nor shall any officer,
director, employee, agent, shareholder, partner, member or beneficiary of Landlord be personally
liable for any of Landlord’s obligations hereunder. Further, in no event shall Landlord be liable
under any circumstances for any consequential damages or for injury or damage to, or interference
with, Tenant’s business, including but not limited to, loss of profits, loss of rents or other
revenues, loss of business opportunity, loss of goodwill, or loss of use, however occurring.

     30. COMMUNICATIONS AND COMPUTER LINES. Tenant may install, maintain, replace, remove
or use any communications or computer wires and cables (collectively, the “Lines”) at the
Project in or serving the Premises, provided that (a) Tenant shall obtain Landlord’s prior written
consent, use an experienced and qualified contractor approved in writing by Landlord, and comply
with all of the other provisions of this Lease, (b) an acceptable number of spare Lines and space
for additional Lines shall be maintained for existing and future occupants of the Project, as
determined in Landlord’s reasonable opinion, (c) the Lines therefor (including riser cables) shall
be appropriately insulated to prevent excessive electromagnetic fields or radiation, and shall be
surrounded by a protective conduit reasonably acceptable to Landlord, (d) any new or existing Lines
servicing the Premises shall comply with all Governmental Requirements, (e) as a condition to
permitting the installation of new Lines, Landlord may require that Tenant remove existing Lines
located in or serving the Premises and repair any damage in connection with such removal, and (f)
Tenant shall pay all costs in connection with the foregoing. Landlord reserves the right to require
that Tenant remove any Lines located in or serving the Premises which are installed in violation of
these provisions, or which are at any time in violation of any Governmental Requirements or
represent a dangerous or potentially dangerous condition. In addition, Landlord reserves the right
to require that Tenant remove any or all Lines installed by or for Tenant within or serving the
Premises upon expiration or sooner termination of this Lease, provided Landlord notifies Tenant
prior to or within thirty (30) days following such expiration or sooner termination. Any Lines not
required to be removed pursuant to this Section shall, at Landlord’s option, become the properly of
Landlord (without payment by Landlord). If Tenant fails to remove such Lines as required by
Landlord, or violates any other provision of this Section, Landlord may, after ten (10) days’
written notice to Tenant, remove such Lines or remedy such other violation, at Tenant’s expense
(without limiting Landlord’s other remedies available under this Lease or Governmental
Requirements).

 - 48 - 

 

     31. OPTION TO EXTEND.

          31.1 Renewal Option. Subject to the terms and conditions set forth below, and
provided that Landlord has not exercised its right to terminate this Lease as provided in Section
32 below, Tenant may at its option (“Renewal Option”) extend the Term of this Lease for one
(1) additional three (3) year period (the “Renewal Term”). If Tenant exercises the Renewal
Option hereunder, all of the terms, covenants and conditions of this Lease shall continue in .full
force and effect during the Renewal Term, including provisions regarding payment of Additional
Rent, which shall remain payable on the terms herein set forth, except that (a) the Base Rent
payable by Tenant during the Renewal Term shall be as determined in accordance with Sections 31.3
and 31.4 below, (b) Tenant shall continue to possess and occupy the Premises in their existing
condition, “as is” as of the commencement of the Renewal Term, and Landlord shall have no
obligation to repair, remodel, improve or alter the Premises, to perform any other construction or
other work of improvement upon the Premises, or to provide Tenant with any construction or
refurbishing allowance whatsoever, and (c) Tenant shall have no further rights to extend the Term
of this Lease after the expiration of the Renewal Term.

          31.2 Conditions of Exercise. To exercise the Renewal Option, Tenant must deliver an
unconditional binding notice to Landlord via certified mail or hand delivery not sooner than two
hundred seventy (270) days nor later than one hundred eighty (180) days prior to the expiration of
the initial Term of this Lease. If Tenant fails to timely give its notice of exercise, Tenant will
be deemed to have waived its Renewal Option.

          31.3 Market Rate Calculation. The Base Rent payable by Tenant for the Premises during
the Renewal Term shall be the Market Rate (as defined below) for the Premises, valued as of the
commencement of the Renewal Term, determined in the manner hereinafter provided; provided, however,
that in no event shall the annual Base Rent payable by Tenant for any year of the Renewal Term be
less than the annual Base Rent payable during the last year of the initial Term (without regard to
any abatements of -Rent on account of casualty or otherwise) (“Base Rent Floor”). As used
herein, the term “Market Rate” shall mean the annual amount of Base Rent that a willing
tenant would pay, and that a willing landlord would accept, at arm’s length, for space comparable
to the Premises within the Project or other comparable first class office/R&D projects in the
vicinity of the Project (the “Comparison Projects”), based upon binding lease transactions
for tenants in the Comparison Projects that, where possible, commence or are to commence within six
(6) months prior to or within six (6) months after the commencement of the Renewal Term
(“Comparison Leases”). Comparison Leases shall include renewal and new non-renewal
tenancies, but shall exclude subleases and leases of space subject to another tenant’s expansion
rights. Rental rates payable under Comparison Leases shall be adjusted to account for variations
between this Lease and the Comparison Leases with respect to: (a) the length of the Renewal Term
compared to the lease term of the Comparison Leases; (b) rental structure, including, without
limitation, rental rates per rentable square foot (including type, gross or net, and if gross,
adjusting for base year or expense stop), additional rental, escalation provisions, all other
payments and escalations; (c) the size of the Premises compared to the size of the premises of the
Comparison Leases; (d) location, floor levels and efficiencies of the floor(s) for which the
determination is being made; (e) free rent, moving

 - 49 - 

 

expenses and other cash payments, allowances or other monetary concessions affecting the
rental rate; (f) the age and quality of construction of the Building (including compliance with
applicable codes on the applicable floors); and (g) leasehold improvements and/or allowances,
including the amounts thereof in renewal leases, and taking into account, in the case of renewal
leases (including this Lease), the value of existing leasehold improvements to the renewal tenant

          31.4 Base Rent Determination. The Base Rent payable by Tenant for the Premises during
the Renewal Term shall be determined as follows:

               (a) If Tenant provides Landlord with its unconditional binding notice of exercise pursuant to
Section 31.2 above, then, prior to the commencement of the Renewal Term, Landlord shall deliver to
Tenant either (i) a good faith written proposal of the Market Rate, or (ii) notice that Landlord
has determined in good faith that the Market Rate is less than the Base Rent Floor and, therefore,
that the Base Rent for the Renewal Term shall be equal to the Base Rent Floor. Within twenty-one
(21) days after receipt of Landlord’s proposal, Tenant shall notify Landlord in writing (1) that
Tenant accepts Landlord’s proposal or (2) that Tenant elects to submit the determination of Market
Rate to arbitration in accordance with Subsections 31.4(c) through 31.4(d) below. If Tenant does
not give Landlord a timely notice in response to Landlord’s proposal, Landlord’s proposal of Market
Rate shall be binding upon Tenant.

               (b) If Tenant timely elects to submit the determination of Market Rate to arbitration,
Landlord and Tenant shall first negotiate in good faith in an attempt to determine the Market Rate.
If Landlord and Tenant are able to agree within thirty (30) days following the delivery of
Tenant’s notice to Landlord electing arbitration (or if Tenant accepts Landlord’s initial
proposal), then such agreement shall constitute a determination of Market Rate for purposes of this
Section, and the parties shall immediately execute an amendment to this Lease stating the Base Rent
for the Renewal Term. If Landlord and Tenant are unable to agree on the Market Rate within such
negotiating period, then within fifteen (15) days after the expiration of such negotiating period,
the parties shall meet and concurrently deliver to each other in envelopes their respective good
faith estimates of the Market Rate (set forth on a net effective rentable square foot per annum
basis). If the higher of such estimates is not more than one hundred five percent (105%) of the
lower, then the Market Rate shall be the average of the two. Otherwise, the dispute shall be
resolved by arbitration in accordance with Subsections 31.4(c) and 31.4(d) below.

               (c) Within seven (7) days after the exchange of estimates, the parties shall select as an
arbitrator an independent real estate broker with at least five (5) years of experience in leasing
commercial office space in the metropolitan area in which the Project is located (a “Qualified
Appraiser”). If the parties cannot agree on a Qualified Appraiser, then within a second period
of seven (7) days, each shall select a Qualified Appraiser and within ten (10) days thereafter the
two appointed Qualified Appraisers shall select an independent Qualified Appraiser and the
independent Qualified Appraiser shall be the sole arbitrator. If one party shall fail to select a
Qualified Appraiser

 - 50 - 

 

within the second seven (7) day period, then the Qualified Appraiser chosen by the other party
shall be the sole arbitrator.

               (d) Within twenty-one (21) days after submission of the matter to the arbitrator, the
arbitrator shall determine the Market Rate by choosing whichever of the estimates submitted by
Landlord and Tenant the arbitrator judges to be more accurate. The arbitrator shall notify
Landlord and Tenant of its decision, which shall be final and binding. If the arbitrator believes
that expert advice would materially assist him, the arbitrator may retain one or more qualified
persons to provide expert advice. The fees of the arbitrator and the expenses of the arbitration
proceeding, including the fees of any expert witnesses retained by the arbitrator, shall be paid by
the parry whose estimate is not selected. Each party shall pay the fees of its respective counsel
and the fees of any witness called by that party.

               (e) Until the matter is resolved by agreement between the parties or a decision is rendered in
any arbitration commenced pursuant to this Section 31, Tenant’s monthly payments of Base Rent shall
be in an amount equal to the greater of (i) the Base Rent Floor or (ii) Landlord’s determination of
the Market Rate. Within ten (10) business days following the resolution of such dispute by the
parties or the decision of the arbitrator, as applicable, Tenant shall pay to Landlord, or Landlord
shall pay to Tenant, the amount of any deficiency or excess, as the case may be, in the Base Rent
theretofore paid.

          31.5 General Requirements. Tenant’s right to exercise the Renewal Option is personal
to, and may be exercised only by, the original named Tenant (or Permitted Transferee) under this
Lease, and only if the original named Tenant (or Permitted Transferee) continues to occupy the
entire Premises at the time of such exercise. If Tenant shall assign this Lease (other than to a
Permitted Transferee) or sublet all or any portion of the Premises (other than to a Permitted
Transferee) under a sublease which is effective at any time during the final twelve (12) months of
the initial Term, then immediately upon such assignment or subletting, Tenant’s right to exercise
the Renewal Option shall simultaneously terminate and be of no further force or effect. Except for
a Permitted Transferee, no assignee or subtenant shall have any right to exercise the Renewal
Option granted herein. In addition, if an Event of Default is continuing under this Lease at the
time it exercises the Renewal Option or at any time thereafter until the commencement of the
Renewal Term or if an Event of Default has occurred at any time prior to its exercise of the
Renewal Option, Landlord shall have, in addition to all of its other rights and remedies under this
Lease, the right (but not the obligation) to terminate the Renewal Option and to unilaterally
revoke Tenant’s exercise of the Renewal Option, in which case this Lease shall expire on the
Termination Date, unless earlier terminated pursuant to the terms hereof, and Tenant shall have no
further rights under this Lease to renew or extend the Term.

          32. LANDLORD’S OPTION TO TERMINATE. Landlord may, upon at least nine (9) months’
prior written notice to Tenant (the “Termination Notice”), terminate this Lease effective
at any time after the thirtieth (30th) full calendar month of the Lease Term, in which event Tenant

 - 51 - 

 

shall, in accordance with Section 14 above, vacate and surrender possession of the Premises to
Landlord on or before the termination date specified in the Termination Notice, and all obligations
of Landlord and Tenant under this Lease shall expire as of such termination date, except as to any
obligations that expressly survive such termination. If at the time Landlord delivers the
Termination Notice to Tenant, Landlord has other space that is comparable to the Premises then
available for lease to third parties in the Project or another similar project in the vicinity of
the Project owned by Landlord or an affiliate of Landlord, Landlord shall so notify Tenant. If
Tenant is interested in leasing the other space identified by Landlord, Tenant shall give written
notice (the “Interest Notice”) to Landlord within ten (10) days after receipt of Landlord’s notice
identifying the other space. If Tenant delivers an Interest Notice to Landlord within said ten
(10) day period, and if the parties agree upon the terms and conditions of the lease of the other
space within twenty (20) days after Landlord’s receipt of the Interest Notice, then Tenant’s
obligation to pay Base Rent, Operating Cost Share Rent, and Tax Share Rent shall be waived for the
last one (1) full calendar month of the Term. If Tenant fails to deliver an Interest Notice to
Landlord within said ten (10) day period, or if the parties fail to agree upon the terms and
conditions of the lease of the other space within twenty (20) days after Landlord’s receipt of the
Interest Notice, (a) Landlord shall have the unfettered right to lease the other space to any party
on such terms and conditions as Landlord may determine in its sole and absolute discretion, and (b)
Tenant’s obligation to pay Base Rent, Operating Cost Share Rent, and Tax Share Rent shall be waived
for the last two (2) full calendar months of the Term, Nothing contained in this paragraph shall
be deemed to impose any obligation upon Landlord to ensure that other comparable space will be
available for lease by Tenant, or any obligation upon the parties to negotiate in good faith
respecting the terms and conditions of lease of the other space.

[The remainder of this page has been intentionally left blank.]

 - 52 - 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Lease.

	 	 	 	 	 
	LANDLORD:	 	 
	 
	 	 	 	 
	CARRAMERICA REALTY OPERATING PARTNERSHIP, L.P.,	 	 
	a Delaware limited partnership	 	 
	 
	 	 	 	 
	By:

	 	CarrAmerica Realty Corporation,	 	 
	 

	 	a Maryland corporation, its general partner	 	 
	 
	 	 	 	 
	By:

	 	/s/ Christopher Peatross	 	 
	 

	 	 	 	 
	 

	 	Christopher Peatross	 	 
	 

	 	Managing Director	 	 

	 	 	 	 	 
	Date of Execution: 6/30/05	 	 
	 
	 	 	 	 
	TENANT:	 	 
	 
	 	 	 	 
	STARVOX COMMUNICATIONS, INC.,	 	 
	a California corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ John C. Dong	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:

	 	John C. Dong	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:

	 	VP & CFO	 	 
	 

	 	 	 	 
	 

	 	[chairman, president or vice-president]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 

	 	[secretary, assistant secretary,

chief financial officer or assistant treasurer]	 	 
	 
	 	 	 	 
	Date of Execution: 6/16/05	 	 

   

 

EXHIBIT A

DESCRIPTION OF PREMISES

[See Attached]

     Exhibit A is intended only to show the general layout of the Premises as of the beginning of
the Term of the Lease. It does not in any way supersede any of Landlord’s rights set forth in
Article 27 with respect to arrangements and/or locations of public parts of the Building and
changes in such arrangements and/or locations. It is not to be scaled; any measurements or
distances shown should be taken as approximate.

Exhibit A 

 

EXHIBIT B

RULES AND REGULATIONS

     1. Tenant shall not place anything, or allow anything to be placed near the glass of any
window, door, partition or wall which may, in Landlord’s judgment, appear unsightly from outside of
the Project.

     2. The sidewalks, exits and entrances located in the common areas of the Project shall not be
obstructed by Tenant or used by Tenant for any purposes other than for ingress to and egress from
the Premises. Tenant shall lend its full cooperation to keep such areas free from all obstruction
and in a clean and sightly condition and shall move all supplies, furniture and equipment as soon
as received directly to the Premises and move all such items and waste being taken from the
Premises (other than waste customarily removed by employees of the Building) directly to the
shipping platform at or about the time arranged for removal therefrom.

     3. Tenant shall not bring upon, use or keep in the Premises or the Project any kerosene,
gasoline or inflammable or combustible fluid or material, or any other articles deemed hazardous to
persons or property.

     4. Landlord shall have sole power to direct electricians as to where and how telephone and
other wires are to be introduced. No boring or cutting for wires is to be allowed without
Landlord’s prior written consent. The location of telephones, call boxes and other office
equipment affixed to the Premises shall be subject to Landlord’s prior approval.

     5. No additional locks shall be placed upon any doors, windows or transoms in or to the
Premises. Tenant shall not change existing locks or the mechanism thereof. Upon termination of
the Lease, Tenant shall deliver to Landlord all keys and passes for offices, rooms, parking lot and
toilet rooms which shall have been furnished Tenant. If the keys so furnished are lost, Tenant
shall pay Landlord therefor. Tenant shall not make, or cause to be made, any such keys and shall
order all such keys solely from Landlord and shall pay Landlord for any keys in addition to the two
sets of keys originally furnished by Landlord for each lock.

     6. Tenant shall not install linoleum, tile, carpet or other floor covering so that the same
shall be affixed to the floor of the Premises in any manner except as approved by Landlord.

     7. No furniture, packages, supplies, equipment or merchandise will be received in the Project,
except between such hours as shall be designated by Landlord.

     8. Without Landlord’s prior written consent, Tenant shall not use the name of the Project or
any picture of the Project in connection with, or in promoting or advertising the business of,
Tenant, except Tenant may use the address of the Project as the address of its business.

Exhibit B, Page 1

 

     9. Tenant assumes full responsibility for protecting the Premises from theft, robbery and
pilferage, which may arise from a cause other than Landlord’s negligence, which includes keeping
doors locked and other means of entry to the Premises closed and secured.

     10. Peddlers, solicitors and beggars shall be reported to the office of the Project or as
Landlord otherwise requests.

     11. Tenant shall not advertise the business, profession or activities of Tenant conducted in
the Project in any manner which violates the letter or spirit of any code of ethics adopted by any
recognized association or organization pertaining to such business, profession or activities.

     12. Tenant shall not make or permit any noise, vibration or odor to emanate from the Premises,
or do anything therein tending to create, or maintain, a nuisance.

     13. Tenant acknowledges that Building security problems may occur which may require the
employment of extreme security measures in the day-to-day operation of the Project.

     Accordingly:

          (a) Landlord may, at any time, or from time to time, or for regularly scheduled time
periods, as deemed advisable by Landlord and/or its agents, in their sole discretion, require that
persons entering or leaving the Building or the Project identify themselves to watchmen or
other employees designated by Landlord, by registration, identification or otherwise.

          (b) Tenant agrees that it and its employees will cooperate fully with Project employees in the
implementation of any and all security procedures.

          (c) Such security measures shall be the sole responsibility of Landlord, and Tenant shall have
no liability for any action taken by Landlord in connection therewith, it being understood that
Landlord is not required to provide any security procedures and shall have no liability for such
security procedures or the lack thereof.

     14. Tenant shall not disturb the quiet enjoyment of any other tenant.

     15. Landlord may retain a pass key to the Premises and be allowed admittance thereto at all
times to enable its representatives to examine the Premises from time to time and to exhibit the
same and Landlord may place and keep on the windows and doors of the Premises at any time signs
advertising the Premises for Rent.

     16. No equipment, mechanical ventilators, awnings, special shades or other forms of window
covering shall be permitted either inside or outside the windows of the Premises without Landlord’s
prior written consent, and then only at the expense and risk of Tenant, and they shall be of such
shape, color, material, quality, design and make as may be approved by Landlord.

Exhibit B, Page 2

 

     17. Tenant shall not during the term of this Lease canvas or solicit other tenants of the
Building for any purpose.

     18. Tenant shall not install or operate any phonograph, musical or sound-producing instrument
or device, radio receiver or transmitter, TV receiver or transmitter, or similar device in the
Building, nor install or operate any antenna, aerial, wires or other equipment inside or outside
the Building, nor operate any electrical device from which may emanate electrical waves which may
interfere with or impair radio or television broadcasting or reception from or in the Building or
elsewhere, without in each instance Landlord’s prior written approval. The use thereof, if
permitted, shall be subject to control by Landlord to the end that others shall not be disturbed.

     19. Tenant shall promptly remove all rubbish and waste from the Premises.

     20. Tenant shall not exhibit, sell or offer for sale, rent or exchange in the Premises or at
the Project any article, thing or service, except those ordinarily embraced within the use of the
Premises specified in Section 6 of this Lease, without Landlord’s prior written consent.

     21. Tenant shall not overload any floors in the Premises or any public corridors or elevators
in the Building.

     22. Tenant shall not do any painting in the Premises, or mark, paint, cut or drill into, drive
nails or screws into, or in any way deface any part of the Premises or the Building, outside or
inside, without Landlord’s prior written consent.

     23. Whenever Landlord’s consent, approval or satisfaction is required under these Rules, then
unless otherwise stated, any such consent, approval or satisfaction must be obtained in advance,
such consent or approval may be granted or withheld in Landlord’s sole discretion, and Landlord’s
satisfaction shall be determined in its sole judgment.

     24. Tenant and its employees shall cooperate in all fire drills conducted by Landlord in the
Building.

Exhibit B, Page 3

 

EXHIBIT C

TENANT IMPROVEMENT AGREEMENT

     This Tenant Improvement Agreement (“Agreement”) is an integral part of the Lease dated
June 15, 2005 (“Lease”) relating to certain Premises described therein. Capitalized terms
used in this Agreement not otherwise defined herein shall have the meaning given such terms in the
Lease. Landlord and Tenant agree as follows with respect to the Tenant Improvements, if any, to be
installed in the Premises:

     1. INITIAL TENANT IMPROVEMENTS.

          (a) Landlord shall cause to be performed the initial alterations, additions and improvements
to the Premises identified on the Space Plan attached to the Lease as Exhibit C-l (the
“Approved Space Plan”), including the installation of the offices in the Premises and other
improvements as listed on the Approved Space Plan (collectively, “Tenant Improvements”),
all subject to and in accordance with Landlord’s standard specifications for the Project
(“Project Standard Specifications”) including, but not limited to, the standard Building
materials which are then being used by Landlord for the Project or by landlords of comparable
office/R&D projects. Landlord will provide Tenant with a copy of the Project Standard
Specifications upon Tenant’s request The work of constructing the Tenant Improvements is referred
to as “Landlord’s Work”.

          (b) Following execution of the Lease, Landlord shall cause to be prepared, at its sole cost
and expense, and delivered to Tenant final working drawings for Landlord’s Work (the “Final
Plans”). The Tenant Improvements shown on the Final Plans shall be substantially consistent
with those initially identified on the Approved Space Plan, and Landlord shall cause Landlord’s
Work to be performed substantially as shown on the Final Plans, excepting only minor variations
(i.e., variations which are not inconsistent with the intent of the Final Plans) as Landlord may
deem advisable, and any Change Order Requests (as defined below) approved by Landlord.

     2. CHANGE ORDERS. If, prior to the Substantial Completion Date (as defined below), Tenant
shall request improvements or changes to the Premises in addition to, revision of or substitution
for the Tenant Improvements identified on the Approved Space Plan, including, without limitation,
any request for finishes above the standard for the Building or other detailed specifications
(individually or collectively, “Change Order Requests”), Tenant shall deliver to Landlord
for its approval plans and specifications for such Change Order Requests. If Landlord does not
approve of the plans for such Change Order Requests, Landlord shall advise Tenant of the revisions
required. Tenant shall revise and redeliver the plans and specifications to Landlord within three
(3) days after Landlord’s advice or Tenant shall be deemed to have abandoned its request for such
Change Order Requests. Tenant shall pay for all preparations and revisions of plans and
specifications, and the increase in the cost of construction resulting from all Change Order
Requests.

 Exhibit C, Page 1 

 

     3. TENANT IMPROVEMENT COSTS. Landlord shall bear the cost of construction of the Tenant
Improvements, except for the following, which shall be Tenant’s responsibility: (a) the increase in
the cost of construction resulting from Change Order Requests, and (b) any costs and expenses
incurred by Landlord in connection with, or as a consequence of, any Tenant Delay (as defined in
Section 4 below). If Landlord and Tenant agree on any Change Order Requests as provided in Section
2 above, Landlord shall furnish Tenant with an invoice specifying the estimated increase in the
cost of the Tenant Improvements resulting therefrom, and Tenant shall pay such estimated increase
to Landlord within three (3) days thereafter. Tenant acknowledges and agrees that any such invoice
shall be based solely on an estimate of the increase in the cost of the Tenant Improvements, and
shall not be binding on Landlord or Landlord’s contractor, nor shall Tenant’s payment on account of
such estimate limit Tenant’s obligation hereunder to pay the amount specified in clauses (a) and
(b) above. Landlord shall have no obligation to commence or to continue Landlord’s Work unless
Tenant pays the estimated increase within said three (3) day period. If Tenant does not pay the
estimated amount within the three (3) day period, Tenant shall be deemed to have abandoned its
request for such Change Order.

     4. SUBSTANTIAL COMPLETION. The “Substantial Completion Date” shall be the date that
Landlord, and its architect, engineer or construction manager determines that Landlord’s Work has
been completed, except for (i) finishing details, minor omissions, mechanical adjustments, and
similar items of the type customarily found on an architectural punch-list (the “Punch-List
Items”), the correction or completion of which will not substantially interfere with Tenant’s
occupancy and use of the Premises and (ii) trade fixtures, workstations, telecommunications or
computer cabling or built-in furniture or equipment to be installed by Tenant; provided, however,
that (1) if Landlord is delayed in completing Landlord’s Work or in delivering possession of the
Premises to Tenant as a result of any Tenant Delay (as defined below), the Substantial Completion
Date shall be deemed to have occurred on the date the Substantial Completion Date would have
occurred in the absence of such Tenant Delay, as reasonably determined by Landlord or Landlord’s
architect; and (2) if Tenant takes possession and commences business operations in the Premises
prior to the Substantial Completion Date, the Substantial Completion Date shall be deemed to have
occurred on the date Tenant commences business operations in the Premises. As used in the Lease and
in this Agreement, the term “Tenant Delay” means a delay in the completion of Landlord’s
Work to the extent caused by the act, omission, neglect or failure of Tenant or any of Tenant’s
agents, employees, contractors or subcontractors, including, without limitation, to the extent
caused by Change Order Requests.

     5. OWNERSHIP OF TENANT IMPROVEMENTS. The Tenant Improvements shall be deemed, effective upon
installation, to be a part of the Premises and the Building and shall be deemed to be the property
of Landlord (subject to Tenant’s right to use the same during the Term). The Tenant Improvements
shall be surrendered at the expiration or earlier termination of the Term, and Tenant shall have
no obligation to remove the Tenant Improvements.

Exhibit C, Page 2 

 

EXHIBIT C-l

APPROVED SPACE PLAN

[See Attached]

Exhibit C-1, Page 1

 

 

EXHIBIT D

COMMENCEMENT DATE CONFIRMATION

     THIS
CONFIRMATION AGREEMENT is entered into as of         
               
                
  , 20            
         by and between
CARRAMERICA REALTY OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (“Landlord”), and
STARVOX COMMUNICATIONS, INC., a California corporation (‘Tenant”), with respect to that certain
Lease dated as of June 15, 2005 (the “Lease”) respecting certain premises (the “Premises”) located
in the building known as                                                             ,                 
                        , California.

     Pursuant to Section 1.1 of the Lease, Landlord and Tenant hereby confirm and agree that the
Commencement Date (as defined in the Lease) is         
               
                
 ,              
       , 20       
              and that the Termination
Date (as defined in the Lease) is                     ,                     , 20                    .

     This Confirmation Agreement supplements, and shall be a part of, the Lease.

     IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this Confirmation
Agreement as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 
	 
	 	 	 	 	 	 	 	 
	CARRAMERICA REALTY OPERATING PARTNERSHIP, L.P.,	 	 
	a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	CarrAmerica Realty Corporation,	 	 
	 	 	a Maryland corporation, its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Christopher Peatross	 	 
	 	 	Managing Director	 	 
	 
	 	 	 	 	 	 	 	 
	Date of Execution:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	TENANT:	 	 
	 
	 	 	 	 	 	 
	STARVOX COMMUNICATIONS, INC.,

a California corporation	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Date of Execution:	 	 	 	 
	 

	 	 	 	 	 	 

Exhibit D, Page 1

 

EXHIBIT E

ENVIRONMENTAL QUESTIONNAIRE

     As a new tenant of the Project, answer based upon: (1) any existing or previous operations of
the same kind which Tenant has conducted elsewhere, and (2) Tenant’s plans for the new space. For
each answer, specify which operation(s) you are describing.

     1. Solid Waste.

          a. Does the facility have an EPA Hazardous Waste generator number?

     no

          b. Does the facility produce Hazardous Waste? Other chemical waste?

     no

          c. Describe each type of waste generated (whether or not hazardous).

     none

          d. If the facility produces hazardous waste, is it classified as a large quantity generator,
small quantity generator or conditionally exempt small quantity generator?

     N/A

          e. Are hazardous waste manifests maintained for three years on site?

     N/A

          f. Please identify the waste disposal contractor.

     N/A

     2. Wastewater.

          a. Does the facility produce any “process wastewater,” meaning any wastewater that has come in
contact with chemicals or other materials in process (essentially, any discharge of water other
than from sinks and toilets)?

     no

          b. If so, please describe each type of process wastewater produced.

     N/A

Exhibit E, Page 1 

 

          c. Is any water discharged down the floor drains?

     N/A

          d. Does the facility have a permit for its wastewater discharges?

     N/A

     3. Air Emissions.

          a. Does the facility emit any chemicals or wastes into the air?

     no

          b. Does the facility have an air permit?

     N/A

          c. Does the facility treat any of its air emissions to remove air pollutants?

     N/A

          d. Describe the ventilation system for the facility.

     N/A

     4. General.

          a. Has the facility ever been charged with any violation of, or found in violation of any
environmental requirements? If yes, please describe.

     no

          b. Are you aware of any testing of soil or groundwater to determine whether any contamination
exists in or around the facility? If so, please provide results.

     no

          c. Please describe any hazardous materials present on site, their respective quantities and
the containment measures for those materials.

     no

Exhibit E, Page 2 

 

CarrAmerica Realty Corporation

 

5201 Great America Parkway, Suite 419

Santa Clara, California 95054

Phone: 408.544.9660

Fax: 408.544.9669

www.carramerica.com

February 23, 2006

Al Stojanovich

Starvox

2728 Orchard Parkway

San Jose, CA 95134

Dear Al,

Effective April 1,2006, CarrAmerica will be instituting a new preventative maintenance
program for the HVAC equipment serving your premises.

Currently, it is the Tenant’s responsibility to contract with an HVAC vendor for the
preventative maintenance of the system. In addition, the Tenant is responsible for sending
quarterly preventative maintenance and confirmation of repair records to the Property
Manager. These preventative maintenance records are important for both Tenant and Landlord,
and currently we are not receiving these records in a consistent and timely manner.

In order to ensure the timely and accurate maintenance of the HVAC systems serving your
premises, CarrAmerica has decided to perform the quarterly maintenance of the HVAC system.
This new contract will be between CarrAmerica and the vendor and maintaining this contract
will no longer be a tenant responsibility. Please note however, if there are any specialty
systems serving your computer rooms and/or labs, the responsibility of the regular
maintenance for those systems will remain a Tenant responsibility.

Additionally, please note that CarrAmerica will be responsible for the quarterly HVAC
maintenance portion only. If any repairs are recommended as a result of the maintenance,
these proposals will be forwarded to the tenant and it will be the tenant’s responsibility
to complete the necessary repairs. The Tenant will continue to have responsibility for the
system repairs and day-to-day issues, such as balancing or hot and cold calls from your
employees.

  

 

If you have any questions, please contact me at (408) 544-9660.

Respectfully,

/s/ Tom Smith

Tom Smith

Senior Property Manager

 

 

Received 11/10/05

from CarrAmerica

Next G Networks

Valley Center

Account Summary – Starvox Communications

T# 1034356

	 	 	 	 	 	 	 	 	 	 	 	 	 	        	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MONTH/	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	MO	 	TOTAL
	YEAR	 	OFFC	 	OPEX	 	MISC	 	TOTAL	 	PAID	 	CHECK #	 	BALANCE	 	BALANCE
	Jun-05
	 	$	0.00	 	 	$	62.57	 	 	$	0.00	 	 	$	62.57	 	 	$	—	 	 	 	 	 	 	$	62.57	 	 	$	62.57	 
	Jul-05
	 	$	0.00	 	 	$	1,877.07	 	 	$	0.00	 	 	$	1,877.07	 	 	$	8,129.58	 	 	 	1049	 	 	$	(6,252.51	)	 	$	(6,189.94	)
	Aug-05
	 	$	0.00	 	 	$	1,877.07	 	 	$	0.00	 	 	$	1,877.07	 	 	$	—	 	 	 	5648	 	 	$	1,877.07	 	 	$	( 4,312.87	)
	Sept-05
	 	$	3,323.04	 	 	$	1,877.07	 	 	$	0.00	 	 	$	5,200.11	 	 	$	—	 	 	 	6097796	 	 	$	5,200.11	 	 	$	887.24	 
	Oct-05
	 	$	6,230.70	 	 	$	1,877.07	 	 	$	0.00	 	 	$	8,107.77	 	 	$	—	 	 	 	6107952	 	 	$	8,107.77	 	 	$	8,995.01	 
	Nov-05
	 	$	6,230.70	 	 	$	1,877.07	 	 	$	0.00	 	 	$	8,107.77	 	 	$	—	 	 	 	6117449	 	 	$	8,107.77	 	 	$	17,102.78	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	$	15,784.44	 	 	$	9,447.92	 	 	$	0.00	 	 	$	25,232.36	 	 	$	8,129.58	 	 	 	 	 	 	TOTAL DUE	 	$	17,102.78

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]