Document:

exv10w26

 

Exhibit 10.26

STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE – NET

AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION

1. Basic Provision (“Basic Provisions”).

     1.1 Parties: This Lease (“Lease”), dated for reference purposes only December       , 2001, is made by and between Balch LLC, a California Limited
Liability Company (“Lessor”) and NexVerse Networks, Inc., a
Delaware corporation (“Lessee”), collectively
the “Parties”, or individually a “Party”).

     1.2 (a) Premises: That certain portion of the Project (as defined below), including all
improvements therein or to be provided by Lessor under the terms of this Lease, commonly known by
the street address of a portion of 926 Rock Avenue, Building 2, located in the City of
San Jose, County of Santa Clara, State of California, with zip code _________, as outlined on Exhibit A
attached hereto (”Premises”) and generally described as (describe briefly the nature of
the Premises): approximately 24,747 square foot portion of the 46,430 square foot
R&D/Industrial building (as shown on Exhibit A)

In addition to Lessee’s rights to use and occupy the Premises as hereinafter specified. Lessee
shall have non-executive rights to the Common Areas (as defined in Paragraph 2.7 below) as
hereinafter specified, but shall not have any rights to the roof, exterior walls or utility
raceways of the building containing the Premises (“Building”) or to any other buildings in the
Project. The premises, the Building, the Common Areas, the land upon which they are located, along
with all other buildings and Improvements thereon, are herein collectively referred to as the
“Project.” (See also Paragraph 2)

     1.2 (b) Parking: Zero (0) unreserved vehicle parking spaces
(“Unreserved Parking Spaces”); and _________ the parking area marked on Exhibit B for
reserved vehicle parking spaces (“Reserved Parking Spaces”). (See also Paragraph 2.6)

     1.3 Term: Approx. two (2) years and four (4)
months (“Original Term”) commencing retroactively November 19, 2001
(“Commencement Date”) and ending April 30, 2004
(“Expiration Date”). (See also Paragraph 3)

     1.4 Early Possession: N/A (“Early Possession Date”).

(See also Paragraphs 3.2 and 3.3)

     1.5 Basic Rent: $40,090.00 per moth (“Base Rent”), payable on the first
day of each month commencing January 2002. (See also Paragraph 4)

þ       If this box is checked, there are porivision in this Lease for the Base Rent to be adjusted.

     1.6 Lessee’s Share of Common Area Operating Expenses: Fifty-three point three
percent (53.3%) (“Lessee’s Share”).

     1.7 Base Rent and Other Monies Paid Upon Execution:

	 	(a)	 	Base Rent: $40,090.00 for the period Dec. 1, 2001 – Dec. 31, 2001
	 
	 	(b)	 	Common Area Operating Expenses: $       
          for the period   
     
         
	 
	 	(c)	 	Security Deposit: $See Add. Par. 5 (“Security Deposit”). (See also Paragraph 5)
	 
	 	(d)	 	Other: $16,036.00 for base rent between Nov.
19-30, 2001
	 
	 	(e)	 	Total Due Upon Execution of this Lease: $56,126.00
excluding security deposit.

     1.8 Agreed Use: Office rsearch and development of high technology products and services only
(but not manufacturing)
(See also Paragraph 6)

     1.9 Insuring Party: Lessor is the “Insuring Party”. (See also Paragraph 8)

     1.10 Real Estate Brokers: (See also Paragraph 15)

	 	 	 	 	 	 	 	 	 	 	 
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          (a) Representation: The following real estate brokers ( the “Brokers”) and brokerage
relationships exist in this transaction (check applicable boxes):

þ Grubb & Ellis Company represents Lessor exclusively (“Lessor’s Broker”):

o                                          represents Lessee exclusively (“Lesseer’s Broker”); or

o                                          represents both Lessor and Lessee (“Dual Agency”):

          (b) Payment to Brokers: Upon execution and delivery of the Lease by both Parties. Lessor
shall pay to the Brokers the brokerage fee agreed to in a separate written agreement (or if there
is no such agreement, the sum of                                          or                     % of the total Base Rent for the
brokerage services rendered by the Brokers).

   
  1.11 Guarantor: The obligations of the Lessee under this Lease
are to be guaranteed by         
             
          
              
              
              
               
          
  (“Guarantor”). (See also
Paragraph 37)

    
 1.12 Addenda and Exhibits. Attached hereto is an
Addendum or Addenda consisting of Paragraphs
          
           through   
               
    and Exhibits A through C, all of which constitute a
part of this Lease.

2. Premises.

     2.1 Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the
Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set
forth in this Lease. Unless otherwise provided herein, any statement of size set forth in this
Lease, or that may have been used in calculating Rent, is an approximation which the Parties agree
is reasonable and any payments based thereon are not subject to revision whether or not the actual
size is more or less.

     2.2 Condition. Lessor shall deliver that portion of the Premises contained within the Building
(‘Unit’’) to Lessee broom clean and free–of debris on the Commencement Date or the Early Possession
Date, whichever first occurs (“Start Date”), and, so long as the required service contracts
described in Paragraph 7.1(b) below are obtained by Lessee and in effect within thirty days
following the Start Date, warrants that the existing electrical, plumbing, fire sprinkler,
lighting, heating, ventilating and air conditioning systems (“HVAC”), loading doors, if any, and
all other such elements in the Unit, other than those constructed by Lessee, shall be in good
operating condition on said date and that the structural elements of the roof, bearing walls and
foundation of the Unit shall be free of material defects. If a non-compliance with such warranty
exists as of the Start Date, or if one of such systems or elements should malfunction or fail
within the appropriate warranty period, Lessor shall, as Lessor’s sole obligation with respect to
such matter, except as otherwise provided in this Lease, promptly after receipt of written notice
from Lessee selling forth with specificity the nature and extent of such non-compliance,
malfunction or failure, rectify same at Lessor’s expense. The warranty periods shall be as follows:
(i) 6 months as to the HVAC systems, and (ii) 30 days as to the remaining systems and other
elements of the Unit. If Lessee does not give Lessor the required notice within the appropriate
warranty period, correction of any such non-compliance, malfunction or failure shall be the
obligation of Lessee at Lessee’s sole cost and expense (except for the repairs to the fire
sprinkler systems, roof, foundations, and/or bearing walls — see Paragraph 7).

     2.3 Compliance. Lessor warrants that the Improvements on the Premises and the Common Areas
comply with the building codes that were in effect at the time that each such improvement, or
portion thereof, was constructed, and also with all applicable laws, covenants or restrictions of
record, regulations, and ordinances in effect on the Start Date (“Applicable Requirements”). Said
warranty does not apply to the use to which Lessee will put the Premises or to any Alterations or
Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee
is responsible for determining whether or not the Applicable Requirements, and especially the
zoning, are appropriate for Lessee’s intended use, and acknowledges that past uses of the Premises
may no longer be allowed. If the Premises do not comply with said warranty, Lessor shall, except as
otherwise provided, promptly after receipt of written notice from Lessee setting forth with
specificity the nature and extent of such non-compliance, rectify the same at Lessor’s expense. If
Lessee does not give Lessor written notice of a non-compliance with this warranty within 6 months
following the Start Date, correction of that non-compliance shall be the obligation of Lessee at
Lessee’s sole cost and expense. If the Applicable Requirements are hereafter changed so as to
require during the term of this Lease the construction of an addition to or an alteration of the
Unit, Premises and/or Building, the remediation of any Hazardous Substance, or the reinforcement or
other physical modification of the Unit, Premises and/or Building (“Capital Expenditure”), Lessor
and Lessee shall allocate the cost of such work as follows:

          (a) Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result
of the specific and unique use of the Premises by Lessee as compared with uses by tenants in
general, Lessee shall be fully responsible for the cost thereof, provided, however that if such
Capital Expenditure is required during the last 2 years of this Lease and the cost thereof exceeds
6 months’ Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in
writing, within 10 days after receipt of Lessee’s termination notice that Lessor has elected to pay
the difference between the actual cost thereof and the amount equal to 6 months’ Base Rent. If
Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires
such Capital Expenditure and deliver to Lessor written notice specifying a termination date at
least 90 days thereafter. Such termination date shall, however, in no event be earlier than the
last day that Lessee could legally utilize the Premises without commencing such Capital
Expenditure.

          (b) If such Capital Expenditure is not the result of the specific and unique use of the
Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor and Lessee
shall allocate the obligation to pay for the portion of such costs reasonably attributable to the
Premises pursuant to the formula set out in Paragraph 7.1(d); provided, however, that if such
Capital Expenditure is required during the last 2 years of this Lease or if Lessor reasonably
determines that it is not economically feasible to pay its share thereof, Lessor shall have the
option to terminate this Lease upon 90 days prior written notice to Lessee unless Lessee notifies
Lessor, in writing, within 10 days after receipt of Lessor’s termination notice that Lessee will

	 	 	 	 	 	 	 	 	 	 	 
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pay for such Capital Expenditure. If Lessor does not elect to terminate, and fails to tender
its share of any such Capital Expenditure, Lessee may advance such funds and deduct same, with
Interest, from Rent until Lessor’s share of such costs have been fully paid. If Lessee is unable to
finance Lessor’s share, or if the balance of the Rent due and payable for the remainder of this
Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee shall have the right
to terminate this Lease upon 30 days written notice to Lessor.

          (c) Notwithstanding the above, the provisions concerning Capital Expenditures are intended to
apply only to non-voluntary, unexpected, and new Applicable Requirements. If the Capital
Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use,
change in intensity of use, or modification to the Premises then, and in that event, Lessee shall
be fully responsible for the cost thereof, and Lessee shall not have any right to terminate this
Lease.

     2.4 Acknowledgements. Lessee acknowledges that: (a) it has been advised by Lessor and/or
Brokers to satisfy itself with respect to the condition of the Premises (including but not limited
to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance
with Applicable Requirements and the Americans with Disabilities Act), and their suitability for
Lessee’s intended use, (b) Lessee has made such investigation as it deems necessary with reference
to such matters and assumes all responsibility therefor as the same relate to its occupancy of the
Premises, and (c) neither Lessor, Lessors agents, nor Brokers have made any oral or written
representations or warranties with respect to said matters other than as set forth in this Lease.
In addition, Lessor acknowledges that: (i) Brokers have made no representations, promises or
warranties concerning Lessee’s ability to honor the Lease or suitability to occupy the Premises,
and (ii) it is Lessors sole responsibility to investigate the financial capability and/or
suitability of all proposed tenants.

     2.5 Lessee as Prior Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of
no force or effect if immediately prior to the Start Date Lessee was the owner or occupant of the
Premises. In such event, Lessee shall be responsible for any necessary corrective work.

     2.6 Vehicle Parking. Lessee shall be entitled to use the number of Unreserved Parking Spaces
and Reserved Parking Spaces specified in Paragraph 1.2(b) on those portions of the Common Areas
designated from time to time by Lessor for parking. Lessee shall not
use mere parking spaces
outside the designated parking area then-said-number. Said parking spaces shall be used for parking
by vehicles no larger than full-size passenger automobiles or pick-up trucks, herein called
“Permitted Size Vehicles.” Lessor may regulate the loading and unloading of vehicles by adopting
Rules and Regulations as provided in Paragraph 2.9. No vehicles other than Permitted Size Vehicles
may be parked in the Common Area without the prior written permission of Lessor.

          (a) Lessee shall not permit or allow any vehicles that belong to or are controlled by Lessee
or Lessee’s employees, suppliers, shippers, customers, contractors or invitees to be loaded,
unloaded, or parked in areas other than those designated by Lessor for such activities.

          (b) Lessee shall not service or store any vehicles in the Common Areas.

          (c) If Lessee permits or allows any of the prohibited activities described in this Paragraph
2.6, then Lessor shall have the right, without notice, in addition to such other rights and
remedies that it may have, to remove or tow away the vehicle involved and charge the cost to
Lessee, which cost shall be immediately payable upon demand by Lessor.

     2.7 Common Areas — Definition. The term “Common Areas” is defined as all areas and facilities
outside the Premises and within the exterior boundary line of the Project and interior utility
raceways and installations within the Unit that are provided and designated by the Lessor from time
to time for the general non-exclusive use of Lessor, Lessee and other tenants of the Project and
their respective employees, suppliers, shippers, customers, contractors and invitees, including
parking areas, loading and unloading areas, trash areas, roadways, walkways, driveways and
landscaped areas.

     2.8 Common Areas — Lessee’s Rights. Lessor grants to Lessee, for the benefit of Lessee and its
employees, suppliers, shippers, contractors, customers and invitees, during the term of this Lease,
the non-exclusive right to use, in common with others entitled to such use, the Common Areas as
they exist from time to lime, subject to any rights, powers, and privileges reserved by Lessor
under the terms hereof or under the terms of any rules and regulations or restrictions governing
the use of the Project. Under no circumstances shall the right herein granted to use the Common
Areas be deemed to include the right to store any property, temporarily or permanently, in the
Common Areas. Any such storage shall be permitted only by the prior written consent of Lessor or
Lessors designated agent, which consent may be revoked at any time. In the event that any
unauthorized storage shall occur then Lessor shall have the right, without notice, in addition to
such other rights and remedies that it may have, to remove the property and charge the cost to
Lessee, which cost shall be immediately payable upon demand by Lessor.

     2.9 Common Areas — Rules and Regulations. Lessor or such other person(s) as Lessor may appoint
shall have the exclusive control and management of the Common Areas and shall have the right, from
time to time, to establish, modify, amend and enforce reasonable rules and regulations (“Rules and
Regulations”) for the management, safety, care, and cleanliness of the grounds, the parking and
unloading of vehicles and the preservation of good order, as well as for the convenience of other
occupants or tenants of the Building and the Project and their invitees. Lessee agrees to abide by
and conform to all such Rules and Regulations, and to cause its employees, suppliers, shippers,
customers, contractors and invitees to so abide and conform. Lessor shall not be responsible to
Lessee for the non-compliance with said Rules and Regulations by other tenants of the Project.

     2.10 Common Areas — Changes. Lessor shall have the right, in Lessor’s sole discretion, from
time to time:

          (a) To make changes to the Common Areas, including, without limitation, changes in the
location, size, shape and number of driveways, entrances, parking spaces, parking areas, loading
and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways and utility
raceways;

          (b) To close temporarily any of the Common Areas for maintenance purposes so long as
reasonable

	 	 	 	 	 	 	 	 	 	 	 
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access to the Premises remains available;

          (c) To designate other land outside the boundaries of the Project to be a part of the Common
Areas;

          (d) To add additional buildings and improvements to the Common Areas;

          (e) To use the Common Areas while engaged in making additional improvements, repairs or
alterations to the Project, or any portion thereof, and

          (f) To do and perform such other acts and make such other changes in, to or with respect to
the Common Areas and Project as Lessor may, in the exercise of sound business judgment, deem to be
appropriate.

3. Term.

     3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as
specified in Paragraph 1.3.

     3.2 Early Possession. If Lessee totally or partially occupies the Premises prior to the
Commencement Date, the obligation to pay Base Rent shall be abated for the period of such early
possession. All other terms of this Lease (including but not limited to the obligations to pay
Lessee’s Share of Common Area Operating Expenses, Real Property Taxes and insurance premiums and to
maintain the Premises) shall, however, be in effect during such period. Any such early possession
shall not affect the Expiration Date.

     3.3 Delay In Possession. Lessor agrees to use its best commercially reasonable efforts to
deliver possession of the Premises to Lessee by the Commencement Date: If, despite said efforts,
Lessor is unable to deliver possession as agreed, Lessor shall not be subject to any liability
therefor, nor shall such failure affect the validity of this Lease and Lessee shall, none the less,
net;-however be obligated to pay Rent from the Commencement Date or perform its other obligations
until it receives possession of the Premises. If possession of is not delivered within 60 days
after the Commencement Date, Lessee may, at its option, by notice in writing within 10 days after
the end of such 60 day period, cancel this Lease, in which event the Parties shall be discharged
from all obligations hereunder. If such written notice is not received by Lessor within said 10 day
period, Lessee’s right to cancel shall terminate. Except as otherwise provided, if possession is
not tendered to Lessee by the Start Date and Lessee does not terminate this Lease, as aforesaid,
any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of
delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed
under the terms hereof, but minus any days of delay caused by the
acts or omissions of Lessee. If
possession of the Premises is not delivered within 4 months after the Commencement Date, this Lease
shall terminate unless other agreements are reached between Lessor and Lessee, in writing.

     3.4 Lessee Compliance. Lessor shall not be required to tender possession of the Premises to
Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5).
Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under
this Lease from and after the Start Date, including the payment of Rent, notwithstanding Lessor’s
election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee
is required to perform any other conditions prior to or concurrent with the Start Date, the Start
Date shall occur but Lessor may elect to withhold possession until such conditions are satisfied.

4. Rent

     4.1 Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease
(exceptt including monthly installments for the Security Deposit) are deemed to be rent (“Rent”).

     4.2 Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in
addition to the Base Rent, Lessee’s Share (as specified in Paragraph 1.6) of all Common Area
Operating Expenses, as hereinafter defined, during each calendar year of the term of this Lease, in
accordance with the following provisions:

          (a) “Common Area Operating Expenses” are defined, for purposes of this Lease, as all costs
incurred by Lessor relating to the ownership and operation of the Project, including, but not
limited to, the following:

	 	(i)	 	The operation, repair and maintenance, in neat,
clean, good order and condition of the following:

(aa) The Common Areas and Common Area improvements, including parking
areas, loading and unloading areas, trash areas, roadways, parkways,
walkways, driveways, landscaped areas, bumpers, irrigation systems,
Common Area lighting facilities, fences and gates, elevators, roofs,
and roof drainage systems.

(bb) Exterior signs and any tenant directories.

(cc) Any fire detection and/or sprinkler systems.

	 	(ii)	 	The cost of water, gas, electricity and
telephone to service the Common Areas and any utilities not separately
metered.
	 
	 	(iii)	 	Trash disposal, pest control services,
property management, security services, and the costs of any
environmental inspections.
	 
	 	(iv)	 	Reserves set aside for maintenance and repair
of Common Areas.
	 
	 	(v)	 	Real Property Taxes (as defined in Paragraph
10).

	 	 	 	 	 	 	 	 	 	 	 
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	 	(vi)	 	The cost of the premiums for the insurance
maintained by Lessor pursuant to Paragraph 8.
	 
	 	(vii)	 	Any deductible portion of an insured loss
concerning the Building or the Common Areas.
	 
	 	(viii)	 	The cost of any Capital Expenditure to the Building or the Project
not covered under the provisions of Paragraph 2.3 provided; however,
that Lessor shall allocate the cost of any such Capital Expenditure
over a 12 year period and Lessee shall not be required to pay more than
Lessee’s Share of 1/144th of the cost of such Capital Expenditure in
any given month.
	 
	 	(ix)	 	Any other services to be provided by Lessor
that are stated elsewhere in this Lease to be a Common Area Operating
Expense.

          (b) Any Common Area Operating Expenses and Real Property Taxes that are specifically
attributable to the Unit, the Building or to any other building in the Project or to the operation,
repair and maintenance thereof, shall be allocated entirely to such Unit, Building, or other
building. However, any Common Area Operating Expenses and Real Property Taxes that are not
specifically attributable to the Building or to any other building or to the operation, repair and
maintenance thereof, shall be equitably allocated by Lessor to all buildings in the Project.

          (c) The inclusion of the improvements, facilities and services set forth in Subparagraph
4.2(a) shall not be deemed to impose an obligation upon Lessor to either have said improvements or
facilities or to provide those services unless the Project already has the same, Lessor already
provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or some of
them.

          (d) Lessee’s Share of Common Area Operating Expenses shall be payable by Lessee within 10 days
after a reasonably detailed statement of actual expenses is presented to Lessee. At Lessor’s
option, however, an amount may be estimated by Lessor from time to time of Lessee’s Share of annual
Common Area Operating Expenses and the same shall be payable monthly or quarterly, as Lessor shall
designate, during each 12 month period of the Lease term, on the same day as the Base Rent is due
hereunder. Lessor shall deliver to Lessee within 60 days after the expiration of each calendar year
a reasonably detailed statement showing Lessee’s Share of the actual Common Area Operating Expenses
incurred during the preceding year. If Lessee’s payments under this Paragraph 4.2(d) during the
preceding year exceed Lessee’s Share as indicated on such statement, Lessor shall credit the amount
of such over-payment against Lessee’s Share of Common Area Operating Expenses next becoming due. If
Lessee’s payments under this Paragraph 4.2(d) during the preceding year were less than Lessee’s
Share as indicated on such statement, Lessee shall pay to Lessor the amount of the deficiency
within 10 days after delivery by Lessor to Lessee of the statement.

     4.3 Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of
the United States, without offset or deduction (except as specifically permitted in this Lease), on
or before the day on which it is due. Rent for any period during the term hereof which is for less
than one full calendar month shall be prorated based upon the actual number of days of said month.
Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or
place as Lessor may from time to time designate in writing. Acceptance of a payment which is less
than the amount then due shall not be a waiver of Lessor’s rights to the balance of such Rent,
regardless of Lessor’s endorsement of any check so stating. In the event that any check, draft, or
other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees
to pay to Lessor the sum of $25 in addition to any late charges which may be due.

5. Security Deposit. Lessee shall deposit with Lessor as provided in Addendum, Paragraph 5 upon
execution hereof the Security Deposit as security for Lessee’s faithful performance of its
obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease,
Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any
amount due Lessor or to reimburse or compensate Lessor for any liability, expense, loss or damage
which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of
the Security Deposit, Lessee shall within 10 days after written request therefor deposit monies
with Lessor sufficient to restore said Security Deposit to the full amount required by this Lease.
If the Base Rent increase during the term of this Lease, Lessee shall, upon written request from
Lessor, deposit additional monies with Lessor so that the total amount of the Security Deposit
shall at all times bear the same proportion to the increased Base
Rent as the initial Base Rent.
Should the Agreed Use be amended to accommodate a material change in the business of Lessee or to
accommodate a sublessee or assignee, Lessor shall have the right to increase the Security Deposit
to the extent necessary, in Lessor’s reasonable judgment, to account for any increased wear and
tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs
during this Lease and following such change the financial condition of Lessee is, in Lessors
reasonable judgment, significantly reduced, Lessee shall deposit such additional monies with Lessor
as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based
on such change in financial condition. Lessor shall not be required to keep the Security Deposit
separate from its general accounts. Within 14 days after the expiration or termination of this
Lease, if Lessor elects to apply the Security Deposit only to unpaid Rent, and otherwise within 30
days after the Premises have been vacated pursuant to Paragraph 7.4(c) below, Lessor shall return
that portion of the Security Deposit not used or applied by Lessor. No part of the Security Deposit
shall be considered to be held in trust, to bear interest or to be prepayment for any monies to be
paid by Lessee under this Lease.

6. Use.

     6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal
use which is reasonably comparable thereto, and for no other purpose. Lessee shall not use or
permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance,
or that disturbs occupants of or causes damage to neighboring premises or properties. Lessor shall
not unreasonably withhold or delay its consent to any written request for a modification of the
Agreed Use, so long as the same will not impair the structural integrity of the improvements on the
Premises or the mechanical or electrical systems therein, and/or is not significantly more
burdensome to the Premises. If Lessor elects to withhold consent, Lessor shall

	 	 	 	 	 	 	 	 	 	 	 
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within 7 days after such request give written notification of same, which notice shall include
an explanation of Lessor’s objections to the change in the Agreed Use.

     6.2 Hazardous Substances.

          (a) Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease
shall mean any product, substance, or waste whose presence, use, manufacture, disposal,
transportation, or release, either by itself or in combination with other materials expected to be
on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the
environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a
basis for potential liability of Lessor to any governmental agency or third party under any
applicable statute or common law theory. Hazardous Substances shall include, but not be limited to,
hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions
thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a
Reportable Use of Hazardous Substances without the express prior written consent of Lessor and
timely compliance (at Lessee’s expense) with all Applicable Requirements. “Reportable Use” shall
mean (i) the installation or use of any above or below ground storage tank, (ii) the generation,
possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a
permit from, or with respect to which a report, notice, registration or business plan is required
to be filed with, any governmental authority, and/or (iii) the presence at the Premises of a
Hazardous Substance with respect to which any Applicable Requirements requires that a notice be
given to persons entering or occupying the Premises or neighboring properties. Notwithstanding the
foregoing, Lessee may use any ordinary and customary materials reasonably required to be used in
the normal course of the Agreed Use, so long as such use is in compliance with all Applicable
Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to
any meaningful risk of contamination or damage or expose Lessor to any liability therefor. In
addition, Lessor may condition its consent to any Reportable Use upon receiving such additional
assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or
the environment against damage, contamination, injury and/or liability, including, but not limited
to, the installation (and removal on or before Lease expiration or termination) of protective
modifications (such as concrete encasements) and/or increasing the Security Deposit.

          (b) Duty to Inform Lessor. If Lessee knows, or has reasonable cause to believe, that a
Hazardous Substance has come to be located in, on, under or about the Premises, other than as
previously consented to by Lessor, Lessee shall immediately promptly give written notice of such
fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation
which it has concerning the presence of such Hazardous Substance.

          (c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled
or released in, on, under, or about the Premises (including through the plumbing or sanitary sewer
system) and shall promptly, at Lessee’s expense, take all investigatory and/or remedial action
reasonably recommended, whether or not formally ordered or required, for the cleanup of any
contamination of, and for the maintenance, security and/or monitoring of the Premises or
neighboring properties, that was caused or materially contributed to by Lessee, its Sublessee’s
employees, contractors, representatives or agents, or pertaining to or involving any Hazardous
Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third
party.

          (d) Lessee Indemnification. Lessee shall Indemnify, defend and hold Lessor, its agents,
employees, lenders and ground lessor, if any, harmless from and against any and all loss of rents
and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys’ and
consultants’ fees arising out of or involving any Hazardous Substance brought onto the Premises by
or for Lessee, or any third party (provided, however, that Lessee shall have no liability under
this Lease with respect to underground migration of any Hazardous Substance under the Premises from
areas outside of the Project). Lessee’s obligations shall Include, but not be limited to, the
effects of any contamination or injury to person, property or the environment created or suffered
by Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement, and
shall survive the expiration or termination of this Lease. No termination, cancellation or release
agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this
Lease with respect to Hazardous Substances, unless specifically so agreed by Lessor in writing at
the time of such agreement.

          (e) Lessor Indemnification. Lessor and its successors and assigns shall indemnify, defend,
reimburse and hold Lessee, its employees and lenders, harmless from and against any and all
environmental damages, including the cost of remediation, which existed as a result of Hazardous
Substances on the Premises prior to the Start Date or which are caused by the gross negligence or
willful misconduct of Lessor, its agents or employees. Lessors obligations, as and when required by
the Applicable Requirements, shall include, but not be limited to, the cost of investigation,
removal, remediation, restoration and/or abatement, and shall survive the expiration or termination
of this Lease.

          (f) Investigations and Remediations. Lessor shall retain the responsibility and pay for any
investigations or remediation measures required by governmental entities having jurisdiction with
respect to the existence of Hazardous Substances on the Premises prior to the Start Date, unless
such remediation measure is required as a result of Lessee’s particular use (including
“Alterations”, as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall
be responsible for such payment. Lessee shall cooperate fully in any such activities at the request
of Lessor, including allowing Lessor and Lessor’s agents to have reasonable access following
reasonable notice (except in an emergency) to the Premises at reasonable times in order to carry
out Lessors Investigative and remedial responsibilities.

          (g) Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e))
occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case
Lessee shall make the investigation and remedlation thereof required by the Applicable Requirements
and this Lease shall continue in full force and effect, but subject to Lessors rights under
Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessors option, either (i) investigate and
remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at
Lessors expense, in which event this Lease shall continue in full force and effect, or (ii) if the
estimated cost to remediate such condition exceeds 12 times the then monthly Base Rent or $100,000,
whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of
knowledge of the occurrence of such Hazardous Substance Condition, of Lessors desire to terminate
this Lease as of the date 60 days following the

	 	 	 	 	 	 	 	 	 	 	 
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date of such notice. In the event Lessor elects to give a termination notice, Lessee may,
within 10 days thereafter, give written notice to Lessor of Lessee’s commitment to pay the amount
by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal
to 12 times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall provide
Lessor with said funds or satisfactory assurance thereof within 30 days following such commitment.
In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make
such remediation as soon as reasonably possible after the required funds are available. If Lessee
does not give such notice and provide the required funds or assurance thereof within the time
provided, this Lease shall terminate as of the date specified in Lessors notice of termination.

     6.3 Lessee’s Compliance with Applicable Requirements. Except as otherwise provided in this
Lease, Lessee shall, at Lessee’s sole expense, fully, diligently and in a timely manner, materially
comply with all Applicable Requirements, the requirements of any applicable fire insurance
underwriter or rating bureau, and the recommendations of Lessors engineers and/or consultants which
relate in any manner to the Premises, without regard to whether said requirements are now in effect
or become effective after the Start Date. Lessee shall, within 10 days after receipt of Lessor’s
written request, provide Lessor with copies of all permits and other documents, and other
information evidencing Lessee’s compliance with any Applicable Requirements specified by Lessor,
and shall immediately upon receipt, notify Lessor in writing (with copies of any documents
involved) of any threatened or actual claim, notice, citation, warning, complaint or report
pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable
Requirements.

     6.4 Inspection; Compliance. Lessor and Lessors “Lender” (as defined in Paragraph 30) and
consultants shall have the right to enter Into Premises at any time, in the case of an emergency,
and otherwise at reasonable times, upon reasonable notice (except in an emergency) for the purpose
of inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease.
The cost of any such inspections shall be paid by Lessor, unless a violation of Applicable
Requirements, or a contamination is found to exist or be imminent, or the inspection is requested
or ordered by a governmental authority; provided that Lessee shall not be responsible for the cost
of such inspections, Lessor would be responsible for such costs pursuant to Paragraph 6.2.E above.
In such case, Lessee shall upon request reimburse Lessor for the cost of such inspection, so long
as such inspection is reasonably related to the violation or contamination for which Lessee is
responsible under this Lease.

7. Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations.

     7.1 Lessee’s Obligations.

          (a) In General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3
(Lessee’s Compliance with Applicable Requirements), 7.2 (Lessors Obligations), 9 (Damage or
Destruction), and 14 (Condemnation), Lessee shall, at Lessee’s sole expense, keep the Premises,
Utility Installations (intended for Lessee’s exclusive use, no matter where located), and
Alterations in good order, condition and repair (whether or not the portion of the Premises
requiring repairs, or the means of repairing the same, are reasonably or readily accessible to
Lessee, and whether or not the need for such repairs occurs as a result of Lessee’s use, any prior
use, the elements or the age of such portion of the Premises), including, but not limited to, all
equipment or facilities, such as plumbing, HVAC equipment, electrical, lighting facilities,
boilers, pressure vessels, fixtures, interior walls, interior surfaces of exterior walls, ceilings,
floors, windows, doors, plate glass, and skylights but excluding any items which are the
responsibility of Lessor pursuant to Paragraph 7.2. Lessee, in keeping the Premises in good order,
condition and repair, shall exercise and perform good maintenance practices, specifically including
the procurement and maintenance of the service contracts required by Paragraph 7.1(b) below.
Lessee’s obligations shall include restorations, replacements or renewals when necessary to keep
the Premises and at improvements thereon or a part thereof in good order, condition and state of
repair.

          (b) Service Contracts. Lessee shall, at Lessee’s sole expense, procure end maintain contracts,
with copies to Lessor, in customary form and substance for, and with contractors specializing and
experienced in the maintenance of the following equipment and improvements, if any, if and when
installed on the Premises: (i) HVAC equipment, (ii) boiler and pressure vessels, (iii) clarifiers,
and (iv) any other equipment, if reasonably required by Lessor. However, Lessor reserves the right,
upon notice to Lessee, to procure and maintain any or all of such service contracts, and if Lessor
so elects, Lessee shall reimburse Lessor, upon demand, for the cost thereof.

          (c) Failure to Perform. If Lessee fails to perform Lessee’s obligations under this Paragraph
7.1, Lessor may enter upon the Premises after 10 days’ prior written notice to Lessee (except in
the case of an emergency, in which case no notice shall be required), perform such obligations on
Lessee’s behalf, and put the Premises in good order, condition and repair, and Lessee shall
promptly reimburse Lessor for the cost thereof.

          (d) Replacement. Subject to Lessee’s indemnification of Lessor as set forth in Paragraph 8.7
below, and without relieving Lessee of liability resulting from Lessee’s failure to exercise and
perform good maintenance practices, if an item described in Paragraph 7.1(b) cannot be repaired
other than at a cost which is in excess of 50% of the cost of replacing such item, then such item
shall be replaced by Lessor, and the cost thereof shall be prorated between the Parties and Lessee
shall only be obligated to pay, each month during the remainder of the term of this Lease, on the
date on which Base Rent is due, an amount equal to the product of multiplying the cost of such
replacement by a fraction, the numerator of which is one, and the denominator of which is 144 (ie.
1/144th of the cost per month). Lessee shall pay interest on the unamortized balance at a rate that
is commercially reasonable in the reasonable judgment of Lessors accountants. Lessee may, however,
prepay its obligation at any time.

     7.2 Lessor’s Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3
(Compliance), 4.2 (Common Area Operating Expenses), 6 (Use), 7.1 (Lessee’s Obligations), 9 (Damage
or Destruction) and 14 (Condemnation), Lessor, subject to reimbursement pursuant to Paragraph 4.2,
shall keep in good order, condition and repair the foundations, exterior walls, structural
condition of interior bearing walls, exterior roof, fire sprinkler system, Common Area fire alarm
and/or smoke detection systems, fire hydrants, parking lots, walkways, parkways, driveways,
landscaping, fences, signs and utility systems serving the Common Areas and all parts thereof, as
well as providing the services for which there is a Common Area Operating Expense pursuant to
Paragraph 4.2. Lessor shall not be obligated to paint the exterior or interior surfaces of exterior
walls nor shall Lessor be obligated to maintain,

	 	 	 	 	 	 	 	 	 	 	 
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repair or replace windows, doors or plate glass of the Premises. Lessee expressly waives the
benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms
of this Lease.

     7.3 Utility Installations; Trade Fixtures; Alterations.

          (a) Definitions. The term ‘Utility Installations” refers to all floor and window coverings,
air lines, power panels, electrical distribution, security and fire protection systems,
communication systems, lighting fixtures, HVAC equipment, plumbing, and fencing in or on the
Premises. The term “Trade Fixtures” shall mean Lessee’s machinery and equipment that can be removed
without doing material damage to the Premises. The term “Alterations” shall mean any modification
of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or
deletion. “Lessee Owned Alterations and/or Utility Installations” are defined as Alterations and/or
Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a).

          (b) Consent. Lessee shall not make any Alterations or Utility Installations to the Premises
without Lessor’s prior written consent. Lessee may, however, make non-structural Utility
Installations to the interior of the Premises (excluding the roof) without such consent but upon
notice to Lessor, as long as they are cosmetic in nature, do not require permits, are not visible
from the outside, do not involve puncturing, relocating or removing the roof or any existing walls,
and the cumulative cost thereof during this Lease as extended does not exceed a sum equal to 3
month’s Base Rent in the aggregate or a sum equal to one month’s Base Rent in any one year.
Notwithstanding the foregoing, Lessee shall not make or permit any roof penetrations and/or install
anything on the roof without the prior written approval of Lessor. Lessor may, as a precondition to
granting such approval, require Lessee to utilize a contractor chosen and/or approved by Lessor.
Any Alterations or Utility Installations that Lessee shall desire to make and which require the
consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent
shall be deemed conditioned upon Lessee’s: (1) acquiring all applicable governmental permits, (ii)
furnishing Lessor with copies of both the permits and the plans and specifications prior to
commencement of the work, and (iii) compliance with all conditions of said permits and other
Applicable Requirements in a prompt and expeditious manner. Any Alterations or Utility
Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee
shall promptly upon completion furnish Lessor with as-built plans and specifications. For work
which costs an amount in excess of one month’s Base Rent, Lessor may condition its consent upon
Lessee providing a lien and completion bond in an amount equal to 150% of the estimated cost of
such Alteration or Utility Installation and/or upon Lessee’s posting an additional Security Deposit
with Lessor.

          (c) Indemnification. Lessee shall pay, when due, all claims for labor or materials furnished
or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are
or may be secured by any mechanic’s or materlalman’s lien against the Premises or any interest
therein. Lessee shall give Lessor not less than 10 days notice prior to the commencement of any
work in, on or about the Premises, and Lessor shall have the right to post notices of
non-responsibility. If Lessee shall contest the validity of any such lien, claim or demand, then
Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the
same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the
enforcement thereof. If Lessor shall require, Lessee shall furnish a surety bond in an amount equal
to 150% of the amount of such contested lien, claim or demand, indemnifying Lessor against
liability for the same. If Lessor elects to participate in any such action, Lessee shall pay
Lessor’s attomeys’ fees and costs.

     7.4 Ownership; Removal; Surrender; and Restoration.

          (a) Ownership. Subject to Lessor’s right to require removal or elect ownership as hereinafter
provided, all Alterations and Utility Installations made by Lessee shall be the property of Lessee,
but considered a part of the Premises. Lessor may, at any time, elect in writing to be the owner of
all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless
otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility
Installations shall, at the expiration or termination of this Lease, become the property of Lessor
and be surrendered by Lessee with the Premises.

          (b) Removal. By delivery to Lessee of written notice from Lessor not earlier than 90 and not
later than 30 days prior to the end of the term of this Lease, Lessor may require that any or all
Lessee Owned Alterations or Utility Installations be removed by the expiration or termination of
this Lease. Lessor may require the removal at any time of all or any part of any Lessee Owned
Alterations or Utility Installations made without the required consent.

          (c) Surrender; Restoration. Lessee shall surrender the Premises by the Expiration Date or any
earlier termination date, with all of the Improvements, parts and surfaces thereof broom clean and
free of debris, and in good operating order, condition and state of repair, ordinary wear and tear
excepted. “Ordinary wear and tear” shall not include any damage or deterioration that would have
been prevented by good maintenance practice. Notwithstanding the foregoing, if this Lease is for 12
months or less, then Lessee shall surrender the Premises in the same condition as delivered to
Lessee on the Start Date with NO allowance for ordinary wear and tear. Lessee shall repair any
damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee owned
Alterations and/or Utility Installations, furnishings, and equipment as well as the removal of any
storage tank installed by or for Lessee. Lessee shall also completely remove from the Premises any
and all Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except
Hazardous Substances which were deposited via underground migration from areas outside of the
Project) even if such removal would require Lessee to perform or pay for work that exceeds
statutory requirements. Trade Fixtures shall remain the property of Lessee and shall be removed by
Lessee. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c)
without the express written consent of Lessor shall constitute a holdover under the provisions of
Paragraph 26 below.

8. Insurance; Indemnity.

     8.1 Payment of Premiums. The cost of the premiums for the insurance policies required to be
carried by Lessor, pursuant to Paragraphs 8.2(b), 8.3(a) and 8.3(b), shall be a Common Area
Operating Expense. Premiums for policy periods commencing prior to, or extending beyond, the term
of this Lease shall be prorated to coincide with the corresponding Start Date or

	 	 	 	 	 	 	 	 	 	 	 
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Expiration Date.

     8.2 Liability Insurance.

          (a) Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability
policy of insurance protecting Lessee and Lessor as an additional insured against claims for bodily
injury, personal injury and property damage based upon or arising out of the ownership, use,
occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be
on an occurrence basis providing single limit coverage in an amount
not less than $1,000,000
$2,000,000 per occurrence with an annual aggregate of not less than $2,000,000, an “Additional
Insured-Managers or Lessors of Premises Endorsement” and contain the “Amendment of the Pollution
Exclusion Endorsement” for damage caused by heat, smoke or fumes from a hostile fire. The policy
shall not contain any intra-insured exclusions as between insured persons or organizations, but
shall include coverage for liability assumed under this Lease as an “Insured contract” for the
performance of Lessee’s Indemnity obligations under this Lease. The limits of said Insurance shall
not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder. All
Insurance carried by Lessee shall be primary to and not contributory with any similar insurance
carried by Lessor, whose Insurance shall be considered excess insurance only.

          (b) Carried by Lessor. Lessor shall maintain liability insurance as described in Paragraph
8.2(a), in addition to, and not in lieu of, the insurance required to be maintained by Lessee.
Lessee shall not be named as an additional insured therein.

     8.3 Property Insurance — Building, Improvements and Rental Value.

          (a) Building and Improvements. Lessor shall obtain and keep in force a policy or policies of
insurance in the name of Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender
insuring loss or damage to the Premises. The amount of such insurance shall be equal to the full
replacement cost of the Premises, as the same shall exist from time to time, or the amount required
by any Lender, but in no event more than the commercially reasonable and available insurable value
thereof. Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee’s personal
property shall be insured by Lessee under Paragraph 8.4. If the coverage is available and
commercially appropriate, such policy or policies shall Insure against all risks of direct physical
loss or damage (except the perils of flood and/or earthquake unless required by a Lender),
Including coverage for debris removal and the enforcement of any Applicable Requirements requiring
the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the
result of a covered loss. Said policy or policies shall also contain an agreed valuation provision
in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an
increase in the annual property insurance coverage amount by a factor of not less than the adjusted
U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where
the Premises are located. If such insurance coverage has a deductible clause, the deductible amount
shall not exceed $1,000 $10,000 per occurrence.

          (b) Rental Value. Lessor shall also obtain and keep in force a policy or policies in the name
of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one
year with an extended period of indemnity for an additional 180 days (“Rental Value
insurance”). Said insurance shall contain an agreed valuation provision in lieu of any
coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected
Rent otherwise payable by Lessee, for the next 12 month period.

          (c) Adjacent Premises. Lessee shall pay for any increase in the premiums for the property
insurance of the Building and for the Common Areas or other buildings in the Project if said
increase is caused by Lessee’s acts, omissions, use or occupancy of the Premises.

          (d) Lessee’s Improvements. Since Lessor is the Insuring Party, Lessor shall not be required to
insure Lessee Owned Alterations and Utility Installations unless the item in question has become
the property of Lessor under the terms of this Lease.

     8.4 ‘Lessee’s Property; BusIness Interruption Insurance.

          (a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee’s
personal property Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such
insurance shall be full replacement cost coverage with a deductible
of not to exceed $10,000 $1,000
per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of
personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations. Lessee
shall provide Lessor with written evidence that such insurance is in force.

          (b) Business Interruption. Lessee shall obtain and maintain loss of income and extra expense
insurance in amounts as will reimburse Lessee for direct or indirect loss of earnings attributable
to all perils commonly insured against by prudent lessees in the business of Lessee or attributable
to prevention of access to the Premises as a result of such perils.

          (c) No Representation of Adequate Coverage. Lessor makes no representation that the limits or
forms of coverage of insurance specified herein are adequate to cover Lessee’s property, business
operations or obligations under this Lease.

     8.5 Insurance Policies. Insurance required herein shall be by companies duly licensed or
admitted to transact business in the state where the Premises are located, and maintaining during
the policy term a “General Policyholders Rating” of at
least A-, VII B+, V, as set forth in the
most current issue of “Best’s Insurance Guide”, or such other rating as may be required by a
Lender. Lessee shall not do or permit to be done anything which invalidates the required insurance
policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of
such insurance or certificates evidencing the existence and amounts of the required insurance. No
such policy shall be cancelable or subject to modification except after 30 days prior written
notice to Lessor. Lessee shall, at least 30 days prior to the expiration of such policies, furnish
Lessor with evidence of renewals or “insurance binders” evidencing renewal thereof, or Lessor may
order such insurance and charge the cost thereof to Lessee, which amount shall

	 	 	 	 	 	 	 	 	 	 	 
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be payable by Lessee to Lessor upon within twenty (20) days of demand. Such policies shall be
for a term of at least one year, or the length of the remaining term of this Lease, whichever is
less. If either Party shall fail to procure and maintain the insurance required to be carried by
it, the other Party may, but shall not be required to, procure and maintain the same.

     8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor
each hereby release and relieve the other, and waive their entire right to recover damages against
the other, for loss of or damage to its property arising out of or incident to the perils required
to be insured against herein. The effect of such releases and waivers is not limited by the amount
of insurance carried or required or by any deductibles applicable hereto. The Parties agree to have
their respective property damage insurance carriers waive any right to subrogation that such
companies may have against Lessor or Lessee, as the case may be, so long as the insurance is not
invalidated thereby.

     8.7 Indemnity. Except for Lessors gross negligence or willful misconduct, Lessee shall
indemnify, protect, defend and hold harmless the Premises, Lessor and its agents, Lessor’s master
or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or
damages, liens, judgments, penalties, attorneys’ and consultants’ fees, expenses and/or liabilities
arising out of, involving, or in connection with, the use and/or occupancy of the Premises by
Lessee. If any action or proceeding is brought against Lessor by reason of any of the foregoing
matters, Lessee shall upon notice defend the same at Lessee’s expense by counsel reasonably
satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have
first paid any such claim in order to be defended or indemnified.

     8.8 Exemption of Lessor from Liability. Lessor shall not be liable for injury or damage to the
person or goods, wares, merchandise or other property of Lessee, Lessee’s employees, contractors,
invitees, customers, or any other person in or about the Premises, whether such damage or injury is
caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage,
leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC
or lighting fixtures, disruption of utility or telecommunications service or from any other cause,
whether the said injury or damage results from conditions arising upon the Premises or upon other
portions of the Building, or from other sources or places. Lessor shall not be liable for any
damages arising from any act or neglect of any other tenant of Lessor nor from the failure of
Lessor to enforce the provisions of any other lease in the Project. Notwithstanding Lessors
negligence or breach of this Lease, Lessor shall under no circumstances be liable for injury to
Lessee’s business or property or for any loss of income or profit therefrom.

9. Damage or Destruction.

     9.1 Definitions.

          (a) “Premises Partial Damage” shall mean damage or destruction to the improvements on the
Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be
repaired in 3 months or less from the date of the damage or destruction, and the cost thereof does
not exceed a sum equal to 6 month’s Base Rent. Lessor shall notify Lessee in writing within 30 days
from the date of the damage or destruction as to whether or not the damage is Partial or Total.

          (b) “Premises Total Destruction” shall mean damage or destruction to the improvements on the
Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which
cannot reasonably be repaired in 3 months or less from the date of the damage or destruction and/or
the cost thereof exceeds a sum equal to 6 month’s Base Rent. Lessor shall notify Lessee in writing
within 30 days from the date of the damage or destruction as to whether or not the damage is
Partial or Total.

          (c) “Insured Loss” shall mean damage or destruction to improvements on the Premises, other
than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an
event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any
deductible amounts or coverage limits involved.

          (d) “Replacement Cost” shall mean the cost to repair or rebuild the improvements owned by
Lessor at the time of the occurrence to their condition existing immediately prior thereto,
including demolition, debris removal and upgrading required by the operation of Applicable
Requirements, and without deduction for depreciation.

          (e) “Hazardous Substance Condition” shall mean the occurrence or discovery of a condition
involving the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph
6.2(a), in, on, or under the Premises.

     9.2 Partial Damage — Insured Loss. If a Premises Partial Damage that is an Insured Loss
occurs, then Lessor shall, at Lessor’s expense, repair such damage (but not Lessee’s Trade Fixtures
or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this
Lease shall continue in full force and effect; provided, however, that Lessee shall, at Lessor’s
election, make the repair of any damage or destruction the total cost to repair of which is $5,000
or less, and, in such event, Lessor shall make any applicable insurance proceeds available to
Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the required
insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the
Insuring Party shall promptly contribute the shortage in proceeds as and when required to complete
said repairs. In the event, however, such shortage was due to the fact that, by reason of the
unique nature of the improvements, full replacement cost insurance coverage was not commercially
reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance
proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with
the funds to cover same, or adequate assurance thereof, within 10 days following receipt of written
notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance
thereof within said 10 day period, the party responsible for making the repairs shall complete them
as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds
or assurance are not received, Lessor may nevertheless elect by written notice to Lessee within 10
days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor
paying any shortage in proceeds, in which case this Lease shall remain in full force and effect, or
(ii) have this Lease terminate 30 days thereafter. Lessee shall not be entitled to reimbursement of
any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage
due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be
some insurance coverage, but the net proceeds of any such insurance

	 	 	 	 	 	 	 	 	 	 	 
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shall be made available for the repairs if made by either Party.

     9.3 Partial Damage — Uninsured Lose. If a Premises Partial Damage that is not an Insured Loss
occurs, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the
repairs at Lessee’s expense), Lessor may either; (i) repair such damage as soon as reasonably
possible at Lessors expense, in which event this Lease shall continue in full force and effect, or
(ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor
of knowledge of the occurrence of such damage. Such termination shall be effective 60 days
following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall
have the right within 10 days after receipt of the termination notice to give written notice to
Lessor of Lessee’s commitment to pay for the repair of such damage without reimbursement from
Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30
days after making such commitment. In such event this Lease shall continue in full force and
effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the
required funds are available. If Lessee does not make the required commitment, this Lease shall
terminate as of the date specified in the terminatIon notice.

     9.4 Total Destruction. Notwithstanding any other provision hereof, if a Premises Total
Destruction occurs, this Lease shall terminate 60 days following such Destruction. If the damage or
destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have
the right to recover Lessor’s damages from Lessee, except as provided in Paragraph 8.6.

     9.5 Damage Near End of Term. If at any time during the last 6 months of this Lease there is
damage for which the cost to repair exceeds one month’s Base Rent, whether or not an Insured Loss,
Lessor (or Lessee, provided Lessee did not cause the damage) may terminate this Lease effective 60
days following the date of occurrence of such damage by giving a written termination notice to
Lessee the other party within 30 days after the date of occurrence of such damage. Notwithstanding
the foregoing, if Lessee at that time has an exercisable option to extend this Lease or to purchase
the Premises, then Lessee may preserve this Lease by, (a) exercising such option and (b) providing
Lessor with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the
repairs on or before the earlier of (i) the date which is 10 days after Lessee’s receipt of
Lessor’s written notice purporting to terminate this Lease, or (ii) the day prior to the date upon
which such option expires. If Lessee duly exercises such option during such period and provides
Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds,
Lessor shall, at Lessor’s commercially reasonable expense, repair such damage as soon as reasonably
possible and this Lease shall continue in full force and effect. If Lessee fails to exercise such
option and provide such funds or assurance during such period, then this Lease shall terminate on
the date specified in the termination notice and Lessee’s option shall be extinguished.

     9.6 Abatement of Rent; Lessee’s Remedies.

          (a) Abatement. In the event of Premises Partial Damage or Premises Total Destruction or a
Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent
payable by Lessee for the period required for the repair, remediation or restoration of such damage
shall be abated in proportion to the degree to which Lessee’s use of the Premises is impaired, but
not to exceed the proceeds received from the Rental Value insurance. All other obligations of
Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability for any such
damage, destruction, remediation, repair or restoration except as provided herein.

          (b) Remedies. If Lessor shall be obligated to repair or restore the Premises and does not
commence, in a substantial and meaningful way, such repair or restoration within 90 days after such
obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or
restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice, of
Lessee’s election to terminate this Lease on a date not less than 60 days following the giving of
such notice. If Lessee gives such notice and such repair or restoration is not commenced within 30
days thereafter, this Lease shall terminate as of the date specified in said notice. If the repair
or restoration is commenced within such 30 days, this Lease shall continue in full force and
effect. “Commence” shall mean either the unconditional authorization of the preparation of the
required plans, or the beginning of the actual work on the Premises, whichever first occurs.

     9.7 Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g)
or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other
advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of
Lessee’s Security Deposit as has not been, or is not then required to be, used by Lessor.

     9.8 Waive Statutes. Lessor and Lessee agree that the terms of this Lease shall govern the
effect of any damage to or destruction of the Premises with respect to the termination of this
Lease and hereby waive the provisions of any present or future statute to the extent inconsistent
herewith.

10. Real Property Taxes.

     10.1 Definition. As used herein, the term “Real Property Taxes” shall include any form of
assessment; real estate, general, special, ordinary or extraordinary, or rental levy or tax (other
than inheritance, personal Income, gift, franchise, or estate taxes); improvement bond; and/or
license fee imposed upon or levied against any legal or equitable interest of Lessor in the
Project, Lessor’s right to other Income therefrom, and/or Lessor’s business of leasing, by any
authority having the direct or indirect power to tax and where the funds are generated with
reference to the Project address and where the proceeds so generated are to be applied by the city,
county or other local taxing authority of a jurisdiction within which the Project is located. The
term “Real Property Taxes” shall also include any tax, fee, levy, assessment or charge, or any
increase therein, imposed by reason of events occurring during the term of this Lease, including
but not limited to, a change in the ownership of the Project or any portion thereof or a change in
the improvements thereon. In calculating Real Property Taxes for any calendar year, the Real
Property Taxes for any real estate tax year shall be included in the calculation of Real Property
Taxes for such calendar year based upon the number of days which such calendar year and tax year
have in common.

     10.2 Payment of Taxes. Lessor shall pay the Real Property Taxes applicable to the Project, and
except as

	 	 	 	 	 	 	 	 	 	 	 
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otherwise provided in Paragraph 10.3, any such amounts shall be included in the calculation of
Common Area Operating Expenses in accordance with the provisions of Paragraph 4.2.

     10.3 Additional Improvements. Common Area Operating Expenses shall not include Real Property
Taxes specified in the tax assessor’s records and work sheets as being caused by additional
improvements placed upon the Project by other lessees or by Lessor for the exclusive enjoyment of
such other lessees. Notwithstanding Paragraph 10.2 hereof, Lessee shall, however, pay to Lessor at
the time Common Area Operating Expenses are payable under Paragraph 4.2, the entirety of any
increase in Real Property Taxes if assessed solely by reason of Alterations, Trade Fixtures or
Utility Installations placed upon the Premises by Lessee or at Lessee’s request.

     10.4 Joint Assessment. If the Building is not separately assessed, Real Property Taxes
allocated to the Building shall be an equitable proportion of the Real Property Taxes for all of
the land and improvements included within the tax parcel assessed, such proportion to be determined
by Lessor from the respective valuations assigned in the assessor’s work sheets or such other
information as may be reasonably available. Lessor’s reasonable determination thereof, in good
faith, shall be conclusive.

     10.5 Personal Property Taxes. Lessee shall pay prior to delinquency all taxes assessed against
and levied upon Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings,
equipment and all personal property of Lessee contained in the Premises. When possible, Lessee
shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings,
equipment and all other personal property to be assessed and billed separately from the real
property of Lessor. If any of Lessee’s said property shall be assessed with Lessor’s real property,
Lessee shall pay Lessor the taxes attributable to Lessee’s property within 10 days after receipt of
a written statement setting forth the taxes applicable to Lessee’s property.

11. Utilities. Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal
and other utilities and services supplied to the Premises, together with any taxes thereon.
Notwithstanding the provisions of Paragraph 4.2, if at any time in Lessor’s sole judgment, Lessor
determines that Lessee is using a disproportionate amount of water, electricity or other commonly
metered utilities, or that Lessee is generating such a large volume of trash as to require an
increase in the size of the dumpster and/or an increase in the number of times per month that the
dumpster is emptied, then Lessor may increase Lessee’s Base Rent by an amount equal to such
increased costs.

12. Assignment and Subletting.

     12.1 Lessor’s Consent Required.

          (a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber
(collectively, “assign or assignment”) or sublet all or any part of Lessee’s interest in this Lease
or in the Premises without Lessor’s prior written consent

          (b) A change in the control of Lessee shall constitute an assignment requiring consent. The
transfer, on a cumulative basis, of 25% or more of the voting control of Lessee shall constitute a
change in control for this purpose.

          (c) The involvement of Lessee or its assets in any transaction, or series of transactions (by
way of merger, sale, acquisition, financing, transfer, leveraged buy-out or otherwise), whether or
not a formal assignment or hypothecation of this Lease or Lessee’s assets occurs, which results or
will result in a reduction of the Net Worth of Lessee by an amount greater than 25% of such Net
Worth as it was represented at the time of the execution of this Lease or at the time of the most
recent assignment to which Lessor has consented, or as it exists immediately prior to said
transaction or transactions constituting such reduction, whichever was or is greater, shall be
considered an assignment of this Lease to which Lessor may withhold its consent. “Net Worth of
Lessee” shall mean the net worth of Lessee (excluding any guarantors) established under generally
accepted accounting principles.

          (d) An assignment or subletting without consent shall, at Lessor’s option, be a Default
curable after notice per Paragraph 13.1(c), or a noncurable Breach without the necessity of any
notice and grace period. If Lessor elects to treat such unapproved assignment or subletting as a
noncurable Breach, Lessor may either: (i) terminate this Lease, or (ii) upon 30 days written
notice, increase the monthly Base Rent to 110% of the Base Rent then in effect. Further, in the
event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the
Premises held by Lessee shall be subject to similar adjustment to 110% of the price previously in
effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the
Lease term shall be increased to 110% of the scheduled adjusted rent.

          (e) Lessee’s remedy for any breach of Paragraph 12.1 by Lessor shall be limited to
compensatory damages and/or injunctive relief.

     12.2 Terms and Conditions Applicable to Assignment and Subletting.

          (a) Regardless of Lessor’s consent, no assignment or subletting shall: (i) be effective
without the express written assumption by such assignee or sublessee of the obligations of Lessee
under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary
liability of Lessee for the payment of Rent or for the performance of any other obligations to be
performed by Lessee.

          (b) Lessor may accept Rent or performance of Lessee’s obligations from any person other than
Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or
disapproval of such assignment nor the acceptance of Rent or performance shall constitute a waiver
or estoppel of Lessor’s right to exercise its remedies for Lessee’s Default or Breach.

          (c) Lessor’s consent to any assignment or subletting shall not constitute a consent to any
subsequent assignment or subletting.

	 	 	 	 	 	 	 	 	 	 	 
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          (d) In the event of any Default or Breach by Lessee, Lessor may proceed directly against
Lessee, any Guarantors or anyone else responsible for the performance of Lessee’s obligations under
this Lease, including any assignee or sublessee, without first exhausting Lessor’s remedies against
any other person or entity responsible therefore to Lessor, or any security held by Lessor.

          (e) Each request for consent to an assignment or subletting shall be in writing, accompanied
by information relevant to Lessor’s determination as to the financial and operational
responsibility and appropriateness of the proposed assignee or sublessee, including but not limited
to the intended use and/or required modification of the Premises, if any, together with a fee of
$1,000, as consideration for
Lessor’s considering and processing said request. Lessee agrees to provide Lessor with such other
or additional information and/or documentation as may be reasonably requested.

          (f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such
assignment or entering into such sublease, be deemed to have assumed and agreed to conform and
comply with each and every term, covenant, condition and obligation herein to be observed or
performed by Lessee during the term of said assignment or sublease, other than such obligations as
are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has
specifically consented to in writing.

          (g) Lessor’s consent to any assignment or subletting shall not transfer to the assignee or
sublessee any Option granted to the original Lessee by this Lease unless such transfer is
specifically consented to by Lessor in writing. (See Paragraph 39.2)

     12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and
conditions shall apply to any subletting by Lessee of all or any part of the Premises and shall be
deemed included in all subleases under this Lease whether or not expressly incorporated therein:

          (a) Lessee hereby assigns and transfers to Lessor all of Lessee’s interest in all Rent payable
on any sublease, and Lessor may collect such Rent and apply same toward Lessee s obligations under
this Lease; provided, however, that until a Breach shall occur in the performance of Lessee’s
obligations, Lessee may collect said Rent. Lessor shall not, by reason of the foregoing or any
assignment of such sublease, nor by reason of the collection of Rent, be deemed fable to the
sublessee for any failure of Lessee to perform and comply with any of Lessee’s obligations to such
sublessee. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a
written notice from Lessor stating that a Breach exists in the performance
of Lessee’s obligations under this Lease, to pay to Lessor all Rent due and to become due under the
sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor
without any obligation or right to inquire as to whether such Breach exists, notwithstanding any
claim from Lessee to the contrary.

          (b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attom
to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such
sublease from the time of the exercise of said option to the expiration of such sublease; provided,
however, Lessor shall not be liable for any prepaid rents or security deposit paid by such
sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor.

          (c) Any matter requiring the consent of the sublessor under a sublease shall also require the
consent of Lessor.

          (d) No sublessee shall further assign or sublet all or any part of the Premises without
Lessor’s prior written consent

          (e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee,
who shall have the right to cure the Default of Lessee within the grace period, if any, specified
in such notice. The sublessee shall have a right of reimbursement and offset from and against
Lessee for any such Defaults cured by the sublessee.

13. Default; Breach; Remedies.

     13.1 Default; Breach. A “Default” is defined as a failure by the Lessee to comply with or
perform any of the terms, covenants, conditions or Rules and Regulations under this Lease. A
"Breach” is defined as the occurrence of one or more of the following Defaults, and the failure of
Lessee to cure such Default within any applicable grace period:

          (a) The abandonment of the Premises; or the vacating of the Premises without providing a
commercially reasonable level of security, or where the coverage of the property insurance
described in Paragraph 8.3 is jeopardized as a result thereof, or without providing reasonable
assurances to minimize potential vandalism.

          (b) The failure of Lessee to make any payment of Rent or any Security Deposit required to be
made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable
evidence of insurance or surety bond, or to fulfill any obligation under this Lease which endangers
or threatens life or property, where such failure continues for a period of 3 business days
following written notice to Lessee.

          (c) The failure by Lessee to provide (i) reasonable written evidence of compliance with
Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized
assignment or subletting, (iv) an Estoppel Certificate, (v) a requested subordination, (vi)
evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 41
(easements), or (viii) any other documentation or information which Lessor may reasonably require
of Lessee under the terms of this Lease, where any such failure continues for a period of 10 days
following written notice to Lessee.

          (d) A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or
of the rules adopted under Paragraph 2.9 hereof, other than those described in subparagraphs
13.1(a), (b) or (c), above, where such Default continues for a period of 30 days after written
notice; provided, however, that if the nature of Lessee’s Default is such that more than

	 	 	 	 	 	 	 	 	 	 	 
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30 days are reasonably required for its cure, then it shall not be deemed to be a Breach if
Lessee commences such cure within said 30 day period and thereafter diligently prosecutes such cure
to completion.

          (e) The occurrence of any of the following events: (i) the making of any general arrangement
or assignment for the benefit of creditors; (ii) becoming a “debtor” as defined in 11 U.S.C. § 101
or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same
is dismissed within 60 days); (iii) the appointment of a trustee or receiver to take possession of
substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease,
where possession is not restored to Lessee within 30 days; or (iv) the attachment, execution or
other judicial seizure of substantially all of Lessee’s assets located at the Premises or of
Lessee’s interest in this Lease, where such seizure is not discharged within 30 days; provided,
however, in the event that any provision of this subparagraph (e) is contrary to any applicable
law, such provision shall be of no force or effect, and not affect the validity of the remaining
provisions.

          (f) The discovery that any financial statement of Lessee or of any Guarantor given to Lessor
was materially false.

          (g) If the performance of Lessee’s obligations under this Lease is guaranteed: (i) the death
of a Guarantor, (ii) the termination of a Guarantor’s liability with respect to this Lease other
than in accordance with the terms of such guaranty, (iii) a Guarantor’s becoming insolvent or the
subject of a bankruptcy filing, (iv) a Guarantor’s refusal to honor the guaranty, or (v) a
Guarantor’s breach of its guaranty obligation on an anticipatory basis, and Lessee’s failure,
within 60 days following written notice of any such event, to provide written alternative assurance
or security, which, when coupled with the then existing resources of Lessee, equals or exceeds the
combined financial resources of Lessee and the Guarantors that existed at the time of execution of
this Lease.

     13.2 Remedies. If Lessee falls to perform any of its affirmative duties or obligations, within
10 days after written notice (or in case of an emergency, without notice), Lessor may, at its
option, perform such duty or obligation on Lessee’s behalf, including but not limited to the
obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or
approvals. The costs and expenses of any such performance by Lessor shall be due and payable by
Lessee upon receipt of invoice therefor. If any check given to Lessor by Lessee shall not be
honored by the bank upon which it is drawn, Lessor, at its option, may require all future payments
to be made by Lessee to be by cashier’s check. In the event of a Breach, Lessor may, with or
without further notice or demand, and without limiting Lessor in the exercise of any right or
remedy which Lessor may have by reason of such Breach:

          (a) Terminate Lessee’s right to possession of the Premises by any lawful means, in which case
this Lease shall terminate and Lessee shall immediately surrender possession to Lessor. In such
event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which had been earned at
the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent
which would have been earned after termination until the time of award exceeds the amount of such
rental loss that the Lessee proves could have been reasonably avoided; (iii) the worth at the time
of award of the amount by which the unpaid rent for the balance of the term after the time of award
exceeds the amount of such rental loss that the Lessee proves could be reasonably avoided; and (iv)
any other amount necessary to compensate Lessor for all the detriment proximately caused by the
Lessee’s failure to perform its obligations under this Lease or which in the ordinary course of
things would be likely to result therefrom, including but not limited to the cost of recovering
possession of the Premises, expenses of reletting, including necessary renovation and alteration of
the Premises, reasonable attorneys’ fees, and that portion of any leasing commission paid by Lessor
in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time
of award of the amount referred to in provision (iii) of the immediately preceding sentence shall
be computed by discounting such amount at the discount rate of the Federal Reserve Bank of the
District within which the Premises are located at the time of award plus one percent. Efforts by
Lessor to mitigate damages caused by Lessee’s Breach of this Lease shall not waive Lessor’s right
to recover damages under Paragraph 12. If termination of this Lease is obtained through the
provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding
any unpaid Rent and damages as are recoverable therein, or Lessor may reserve the right to recover
all or any part thereof in a separate suit. If a notice and grace period required under Paragraph
13.1 was not previously given, a notice to pay rent or quit, or to perform or quit given to Lessee
under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In
such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute
shall run concurrently, and the failure of Lessee to cure the Default within the greater of the two
such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling
Lessor to the remedies provided for in this Lease and/or by said statute.

          (b) Continue the Lease and Lessee’s right to possession and recover the Rent as it becomes
due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of
maintenance, efforts to relet, and/or the appointment of a receiver to protect the Lessor’s
interests, shall not constitute a termination of the Lessee’s right to possession.

          (c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of
the state wherein the Premises are located. The expiration or termination of this Lease and/or the
termination of Lessee’s right to possession shall not relieve Lessee from liability under any
indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by
reason of Lessee’s occupancy of the Premises.

     13.3 Inducement Recapture. Any agreement for free or abated rent or other charges, or for the
giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration
for Lessee’s entering into this Lease, all of which concessions are hereinafter referred to as
"Inducement Provisions”, shall be deemed conditioned upon Lessee’s full and faithful performance of
all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any
such Inducement Provision shall automatically be deemed deleted from this Lease and of no further
force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated,
given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by
Lessee to Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by
Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not
be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in
writing by Lessor at the time of such acceptance.

	 	 	 	 	 	 	 	 	 	 	 
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     13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause
Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain. Such costs include, but are not limited to, processing and accounting
charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent
shall not be received by Lessor within 5 days after such amount shall be due, then, without any
requirement for notice to Lessee, Lessee shall pay to Lessor a one-time late charge equal to 10% of
each such overdue amount or $100, whichever is greater. The parties hereby agree that such late
charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of such
late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of
Lessee’s Default or Breach with respect to such overdue amount, nor prevent the exercise of any of
the other rights and remedies granted hereunder. In the event that a late charge is payable
hereunder, whether or not collected, for 3 consecutive installments of Base Rent, then
notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor’s option,
become due and payable quarterly in advance.

     13.5 Interest, Any monetary payment due Lessor hereunder, other than late charges, not
received by Lessor, when due as to scheduled payments (such as Base Rent) or within 30 days
following the date on which it was due for non-scheduled payment, shall bear interest from the date
when due, as to scheduled payments, or the 31st day after it was due as to non-scheduled payments.
The interest (“Interest”) charged shall be equal to the prime rate reported in the Wall Street
Journal as published closest prior to the date when due plus 4%, but shall not exceed the maximum
rate allowed by law. Interest is payable in addition to the potential late charge provided for in
Paragraph 13.4.

     13.6 Breach by Lessor.

          (a) Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails
within a reasonable time to perform an obligation required to be performed by Lessor. For purposes
of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by
Lessor, and any Lender whose name and address shall have been furnished Lessee in writing for such
purpose, of written notice specifying wherein such obligation of Lessor has not been performed;
provided, however, that if the nature of Lessor’s obligation is such that more than 30 days are
reasonably required for its performance, then Lessor shall not be in breach if performance is
commenced within such 30 day period and thereafter diligently pursued to completion.

          (b) Performance by Lessee on Behalf of Lessor. In the event that neither Lessor nor Lender
cures said breach within 30 days after receipt of said notice, or if having commenced said cure
they do not diligently pursue it to completion, then Lessee may elect to cure said breach at
Lessee’s expense and offset from Rent an amount equal to the greater of one month’s Base Rent or
the Security Deposit, and to pay an excess of such expense under protest, reserving Lessee’s right
to reimbursement from Lessor. Lessee shall document the cost of said cure and supply said
documentation to Lessor.

14. Condemnation. If the Premises or any portion thereof are taken under the power of eminent
domain or sold under the threat of the exercise of said power (collectively “Condemnation”), this
Lease shall terminate as to the part taken as of the date the condemning authority takes title or
possession, whichever first occurs. If more than 10% of the floor area of the Unit, or more than
25% of Lessee’s Reserved Parking Spaces, is taken by Condemnation, Lessee may, at Lessee’s option,
to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of
such taking (or in the absence of such notice, within 10 days after the condemning authority shall
have taken possession) terminate this Lease as of the date the condemning authority takes such
possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease
shall remain in full force and effect as to the portion of the Premises remaining, except that the
Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such
Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such
award shall be made as compensation for diminution in value of the leasehold, the value of the part
taken, or for severance damages; provided, however, that Lessee shall be entitled to any
compensation for Lessee’s relocation expenses, loss of business goodwill and/or Trade Fixtures,
without regard to whether or not this Lease is terminated pursuant to the provisions of this
Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes
of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled
to any and all compensation which is payable therefor. In the event that this Lease is not
terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by
such Condemnation.

15. Brokerage Fees.

     15.1 Additional Commission. In addition to the payments owed pursuant to Paragraph 4.10 above,
and unless Lessee and the Brokers otherwise agree in writing, Lessor agrees that: (a) if Lessee
exercises any Option, (b) if Lessee acquires from Lessor any rights to the Premises or other
premises owned by Lessor and located within the Project, (c) if Lessee remains in possession of the
Premises, with theconsent of Lessor, after the expiration of this Lease, or (d) if Base Rent is
increased, whether by agreement or operation of an escalation clause herein, then, Lessor shall pay
Brokers a fee in accordance with the schedule of the Brokers in effect at the time of the execution
of this Lease.

     15.2 Assumption of Obligations. Any buyer or transferee of Lessor’s interest in this Lease
shall be deemed to have assumed Lessor’s obligation hereunder. Brokers shall be third party
beneficiaries of the provisions of Paragraphs 1, 10, 16, 22 and 31. If Lesser fails to pay to
Brokers any amounts due as and for brokerage fees pertaining to this Lease when due, then such
amounts shall accrue. In addition, if Lesser fails to pay any amounts to Lessee’s Broker when due,
Lessee’s Broker may send written notice to Lessor and Lessee of such failure and if Lessor fails to
pay such amounts within 10 days after sold monies to its Broker and offset such amounts against
Rent. In addition, Lessee’s Broker shall be deemed to be a third party beneficiary of any
commission agreement entered into by and/or between Lessor and Lessee’s Broker for the limited
purposes of collecting any brokerage fee owed.

     15.3 Representations and Indemnities of Broker Relationships. Lessee and Lessor each represent
and warrant to the other that it has had no dealings with any person, firm, broker or finder (other
than the Brokers, if any) in connection with this Lease, and that no one other than said named
Brokers is entitled to any commission or finder’s fee in connection herewith. Lessee

	 	 	 	 	 	 	 	 	 	 	 
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and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from
and against liability for compensation or charges which may be claimed by any such unnamed broker,
finder or other similar party by reason of any dealings or actions of the indemnifying Party,
including any costs, expenses, attorneys’ fees reasonably Incurred with respect thereto.

16. Estoppel Certificates.

          (a) Each Party (as “Responding Party”) shall within 10 days after written notice from the
other Party (the “Requesting Party”) execute, acknowledge and deliver to the Requesting Party a
statement in writing in form similar to the then most current “Estoppel Certificate” form published
by the American Industrial Real Estate Association, plus such additional information, confirmation
and/or statements as may be reasonably requested by the Requesting Party.

          (b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within
such 10 day period, the Requesting Party may execute an Estoppel Certificate stating that: (i) the
Lease is in full force and effect without modification except as may be represented by the
Requesting Party, (ii) there are no uncured defaults in the Requesting Party’s performance, and
(iii) if Lessor is the Requesting Party, not more than one month’s rent has been paid in advance.
Prospective purchasers and encumbrances may rely upon the Requesting Party’s Estoppel Certificate,
and the Responding Party shall be estopped from denying the truth of the facts contained in said
Certificate.

          (c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee
and all Guarantors shall deliver to any potential lender or purchaser designated by Lessor such
financial statements as may be reasonably required by such lender or purchaser, including but not
limited to Lessee’s financial statements for the past 3 years. All such financial statements shall
be received by Lessor and such lender or purchaser in confidence and shall be used only for the
purposes herein set forth.

17. Definition of Lessor. The term “Lessor” as used herein shall mean the owner or owners at the
time in question of the fee title to the Premises, or, if this is a sublease, of the Lessee’s
interest in the prior lease. In the event of a transfer of Lessor’s title or interest in the
Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit)
any unused Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such transfer
or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be
relieved of all liability with respect to the obligations and/or covenants under this Lease
thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or
covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as
hereinabove defined. Notwithstanding the above, and subject to the provisions of Paragraph 20
below, the original Lessor under this Lease, and all subsequent holders of the Lessor’s interest in
this Lease shall remain liable and responsible with regard to the potential duties and liabilities
of Lessor pertaining to Hazardous Substances as outlined in Paragraph 6.2 above.

18. Severability. The invalidity of any provision of this Lease, as determined by a court of
competent jurisdiction, shall in no way affect the validity of any other provision hereof.

19. Days. Unless otherwise specifically indicated to the contrary, the word “days” as used in this
Lease shall mean and refer to calendar days.

20. Limitation on Liability. Subject to the provisions of Paragraph 17 above, the obligations of
Lessor under this Lease shall not constitute personal obligations of Lessor, the individual
partners of Lessor or its or their individual partners, directors, officers or shareholders, and
Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any
liability of Lessor with respect to this Lease, and shall not seek recourse against the individual
partners of Lessor, or its or their individual partners, directors, officers or shareholders, or
any of their personal assets for such satisfaction.

21. Time of Essence. Time is of the essence with respect to the performance of all obligations to
be performed or observed by the Parties under this Lease.

22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the
Parties with respect to any matter mentioned herein, and no other prior or contemporaneous
agreement or understanding shall be effective. Lessor and Lessee each represents and warrants to
the Brokers that it has made, and is relying solely upon, its own Investigation as to the nature,
quality, character and financial responsibility of the other Party to this Lease and as to the use,
nature, quality and character of the Premises. Brokers have no responsibility with respect thereto
or with respect to any default or breach hereof by either Party. The liability (including court
costs and attorneys’ fees), of any Broker with respect to negotiation, execution, delivery or
performance by either Lessor or Lessee under this Lease or any amendment or modification hereto
shall be limited to an amount up to the fee received by such Broker pursuant to this Lease;
provided, however, that the foregoing limitation on each Broker’s liability shall not be applicable
to any gross negligence or willful misconduct of such Broker.

23. Notices.

     23.1 Notice Requirements. All notices required or permitted by this Lease or applicable law
shall be in writing and may be delivered in person (by hand or by courier) or may be sent by
regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or
by facsimile transmission, and shall be deemed sufficiently given if served in a manner specified
in this Paragraph 23. The addresses noted adjacent to a Party’s signature on this Lease shall be
that Party’s address for delivery or mailing of notices. Either Party may by written notice to the
other specify a different address for notice, except that upon Lessee’s taking possession of the
Premises, the Premises shall constitute Lessee’s address for notice. A copy of all notices to
Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may
from time to time hereafter designate in writing.

     23.2 Date of Notice. Any notice sent by registered or certified mad, return receipt requested,
shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is
shown, the postmark thereon. If sent by regular mall the

	 	 	 	 	 	 	 	 	 	 	 
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notice shall be deemed given 48 hours after the same is addressed as required herein and
mailed with postage prepaid. Notices delivered by United States Express Mail or overnight courier
that guarantee next day delivery shall be deemed given 24 hours after delivery of the same to the
Postal Service or courier. Notices transmitted by facsimile transmission or similar means shall be
deemed delivered upon telephone confirmation of receipt (confirmation report from fax machine is
sufficient), provided a copy is also delivered via delivery or mail. If notice is received on a
Saturday, Sunday or legal holiday, it shall be deemed received on the next business day.

24. Waivers. No waiver by Lessor or Lessee of the Default or Breach of any term, covenant or
condition hereof by Lessee, shall be deemed a waiver of any other term, covenant or condition
hereof, or of any subsequent Default or Breach by Lessee the other party of the same or of any
other term, covenant or condition hereof. Lessor’s consent to, or approval of, any act shall not be
deemed to render unnecessary the obtaining of Lessors consent to, or approval of, any subsequent or
similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or
provisions of this Lease requiring such consent. The acceptance of Rent by Lessor shall not be a
waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on
account of moneys or damages due Lessor, notwithstanding any qualifying statements or conditions
made by Lessee in connection therewith, which such statements and/or conditions shall be of no
force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time
of deposit of such payment.

25. Disclosures Regarding The Nature of a Real Estate Agency Relationship.

          (a) When entering into a discussion with a real estate agent regarding a real estate
transaction, a Lessor or Lessee should from the outset understand what type of agency relationship
or representation it has with the agent or agents in the transaction. Lessor and Lessee acknowledge
being advised by the Brokers in this transaction, as follows:

               (i) Lessor’s Agent. A Lessor’s agent under a listing agreement with the Lessor acts
as the agent for the Lessor only. A Lessor’s agent or subagent has the following affirmative
obligations: To the Lessor: A fiduciary duty of utmost care, integrity, honesty, and
loyalty in dealings with the Lessor. To the Lessee and the Lessor: (a) Diligent exercise of
reasonable skills and care in performance of the agent’s duties. (b) A duty of honest and fair
dealing and good faith. (c) A duty to disclose all facts known to the agent materially affecting
the value or desirability of the property that are not known to, or within the diligent attention
and observation of, the Parties. An agent is not obligated to reveal to either Party any
confidential information obtained from the other Party which does not involve the affirmative
duties set forth above,

               (ii) Lessee’s Agent. An agent can agree to act as agent for the Lessee only. In these
situations, the agent is not the Lessor’s agent, even if by agreement the agent may receive
compensation for services rendered, either in full or in part from the Lessor. An agent acting only
for a Lessee has the following affirmative obligations. To the Lessee: A fiduciary duty of
utmost care, integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee and the
Lessor: (a) Diligent exercise of reasonable skills and care in performance of the agent’s
duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts
known to the agent materially affecting the value or desirability of the property that are not
known to, or within the diligent attention and observation of, the Parties. An agent is not
obligated to reveal to either Party any confidential information obtained from the other Party
which does not involve the affirmative duties set forth above.

               (iii) Agent Representing Both Lessor and Lessee. A real estate agent, either acting
directly or through one or more associate licenses, can legally be the agent of both the Lessor and
the Lessee in a transaction, but only with the knowledge and consent of both the Lessor and the
Lessee. In a dual agency situation, the agent has the following affirmative obligations to both the
Lessor and the Lessee: (a) A fiduciary duty of utmost care, integrity, honesty and loyalty in the
dealings with either Lessor or the Lessee. (b) Other duties to the Lessor and the Lessee as stated
above in subparagraphs (i) or (ii). In representing both Lessor and Lessee, the agent may not
without the express permission of the respective Party, disclose to the other Party that the Lessor
will accept rent in an amount less than that indicated in the listing or that the Lessee is willing
to pay a higher rent than that offered. The above duties of the agent in a real estate transaction
do not relieve a Lessor or Lessee from the responsibility to protect their own interests. Lessor
and Lessee should carefully read all agreements to assure that they adequately express their
understanding of the transaction. A real estate agent is a person qualified to advise about real
estate. If legal or tax advice is desired, consult a competent professional.

          (b) Brokers have no responsibility with respect to any default or breach hereof by either
Party. The liability (including court costs and attomeys’ fees), of any Broker with respect to any
breach of duty, error or omission relating to this Lease shall not exceed the fee received by such
Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broker’s
lIability shall not be applicable to any gross negligence or willful misconduct of such Broker.

          (c) Buyer and Seller agree to identify to Brokers as “Confidential” any communication or
information given Brokers that is considered by such Party to be confidential.

26. No Right To Holdover. Lessee has no right to retain possession of the Premises or any part
thereof beyond the expiration or termination of this Lease. In the event that Lessee holds over,
then the Base Rent shall be increased to 150%, 175% of the Base Rent applicable immediately
preceding the expiration or termination. Nothing contained herein shall be construed as consent by
Lessor to any holding over by Lessee.

27. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall,
wherever possible, be cumulative with all other remedies at law or in equity.

28. Covenants and Conditions; Construction of Agreement. All provisions of this Lease to be
observed or performed by Lessee are both covenants and conditions. In construing this Lease, all
headings and titles are for the convenience of the Parties only and shall not be considered a part
of this Lease. Whenever required by the context, the singular shall include the plural and vice
versa. This Lease shall not be construed as if prepared by one of the Parties, but rather according
to its fair meaning as a whole, as if both Parties had prepared it.

29. BInding Effect; Choice of Law. This Lease shall be binding upon the parties, their personal
representatives, successors

	 	 	 	 	 	 	 	 	 	 	 
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and assigns and be governed by the laws of the State in which the Premises are located. Any
litigation between the Parties hereto concerning this Lease shall be initiated in the county in
which the Premises are located.

30. Subordination; Attornment; Non-Disturbance.

     30.1 Subordination. This Lease and any Option granted hereby shall be subject and subordinate
to any ground lease, mortgage, deed of trust, or other hypothecation or security device
(collectively, “Security Device”), now or hereafter placed upon the Premises, to any and all
advances made on the security thereof, and to all renewals, modifications, and extensions thereof.
Lessee agrees that the holders of any such Security Devices (in this Lease together referred to as
"Lender”) shall have no liability or obligation to perform any of the obligations of Lessor under
this Lease. Any Lender may elect to have this Lease and/or any Option granted hereby superior to
the lien of its Security Device by giving written notice thereof to Lessee, whereupon this Lease
and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates
of the documentation or recordation thereof.

     30.2 Attornment. In the event that Lessor transfers title to the Premises, or the Premises are
acquired by another upon the foreclosure or termination of a Security Device to which this Lease is
subordinated (i) Lessee shall, subject to the non-disturbance provisions of Paragraph 30.3, attorn
to such new owner, and upon request, enter into a new lease, containing all of the terms and
provisions of this Lease, with such new owner for the remainder of the term hereof, or, at the
election of such new owner, this Lease shall automatically become a new Lease between Lessee and
such new owner, upon all of the terms and conditions hereof, for the remainder of the term hereof,
and (ii) Lessor shall thereafter be relieved of any further obligations hereunder and such new
owner shall assume all of Lessor’s obligations hereunder, except that such new owner shall not: (a)
be liable for any act or omission of any prior lessor or with respect to events occurring prior to
acquisition of ownership; (b) be subject to any offsets or defenses which Lessee might have against
any prior lessor, (c) be bound by prepayment of more than one month’s rent, or (d) be liable for
the return of any security deposit paid to any prior lessor.

     30.3 Non-Disturbance. With respect to Security Devices entered into by Lessor after the
execution of this Lease, Lessee’s subordination of this Lease shall be subject to receiving a
commercially reasonable non-disturbance agreement (a “Non-Disturbance Agreement”) from the Lender
which Non-Disturbance Agreement provides that Lessee’s possession of the Premises, and this Lease,
including any options to extend the term hereof, will not be disturbed so long as Lessee is not in
Breach hereof and attorns to the record owner of the Premises. Further, within 60 days after the
execution of this Lease, Lessor shall use its commercially reasonable efforts to obtain a
Non-Disturbance Agreement from the holder of any pre-existing Security Device which is secured by
the Premises, in the event that Lessor is unable to provide the Non-Disturbance Agreement within
said 60 days, then Lessee may, at Lessee’s option, directly contact Lender and attempt to negotiate
for the execution and delivery of a Non-Disturbance Agreement.

     30.4 Self-Executing. The agreements contained in this Paragraph 30 shall be effective without
the execution of any further documents; provided, however, that, upon written request from Lessor
or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and Lessor
shall execute such further writings as may be reasonably required to separately document any
subordination, attornment and/or Non-Disturbance Agreement provided for herein.

31. Attorneys’ Fees. If any Party or Broker brings an action or proceeding involving the Premises
whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party
(as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to
reasonable attorneys’ fees. Such fees may be awarded in the same suit or recovered in a separate
suit, whether or not such action or proceeding is pursued to decision or judgment. The term,
"Prevailing Party” shall include, without limitation, a Party or Broker who substantially obtains
or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or
the abandonment by the other Party or Broker of its claim or defense. The attorneys’ fees award
shall not be computed in accordance with any court fee schedule, but shall be such as to fully
reimburse all attomeys’ fees reasonably incurred. In addition, Lessor shall be entitled to
attorneys’ fees, costs and expenses incurred in the preparation and service of notices of Default
and consultations in connection therewith, whether or not a legal action is subsequently commenced
in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence
for such services and consultation).

32. Lessors Access; Showing Premises; Repairs. Lessor and Lessor’s agents shall have the right to
enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times upon
reasonable notice (except in the event of an emergency) for the purpose of showing the same to
prospective purchasers, lenders, or tenants, and making such alterations, repairs, improvements or
additions to the Premises as Lessor may deem necessary. All such activities shall be without
abatement of rent or liability to Lessee. Except in an emergency, Lessee shall have the right to
have a representative present with Lessor during any entry by Lessor into the Building pursuant to
this Paragraph 32. Lessor may at any time place on the Premises any ordinary “For Sale” signs and
Lessor may during the last 6 months of the term hereof place on the Premises any ordinary “For
Lease” signs. Lessee may at any time place on the Premises any ordinary “For Sublease” sign.

33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises
without Lessor’s prior written consent. Lessor shall not be obligated to exercise any standard of
reasonableness in determining whether to permit an auction.

34. Signs. Except for ordinary “For Sublease” signs which may be placed only on the Premises,
Lessee shall not place any sign upon the Project without Lessor’s prior written consent. All signs
must comply with all Applicable Requirements.

35. Termination; Merger. Unless specifically stated otherwise in writing by Lessor, the voluntary
or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a
termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or
lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all
existing subtenancies. Lessors failure within 10 days following any such event to elect to the
contrary by written notice to the holder of any such lesser interest, shall constitute Lessors
election to have such event constitute the termination of such interest

	 	 	 	 	 	 	 	 	 	 	 
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36. Consents. Except as otherwise provided herein, wherever in this Lease the consent of a Party is
required to an act by or for the other Party, such consent shall not be unreasonably withheld or
delayed. Lessor’s actual reasonable costs and expenses (including but not limited to architects’,
attorneys’, engineers’ and other consultants’ fees) Incurred in the consideration of, or response
to, a request by Lessee for any Lessor consent, including but not limited to consents to an
assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee
upon receipt of an invoice and supporting documentation therefor. Lessors consent to any act,
assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee
of this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or
Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such
consent. The failure to specify herein any particular condition to Lessors consent shall not
preclude the imposition by Lessor at the time of consent of such further or other conditions as are
then reasonable with reference to the particular matter for which consent is being given. In the
event that either Party disagrees with any determination made by the other hereunder and reasonably
requests the reasons for such determination, the determining party shall furnish its reasons in
writing and in reasonable detail within 10 business days following such request.

37. Guarantor.

     37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form most
recently published by the American Industrial Real Estate Association, and each such Guarantor
shall have the same obligations as Lessee under this Lease.

     37.2 Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses,
upon request to provide: (a) evidence of the execution of the guaranty, including the authority of
the party signing on Guarantor’s behalf to obligate Guarantor, and in the case of a corporate
Guarantor, a certified copy of a resolution of its board of directors authorizing the making of
such guaranty, (b) current financial statements, (c) an Estoppel Certificate, or (d) written
confirmation that the guaranty is still in effect.

38. Quiet Possession. Subject to payment by Lessee of the Rent and performance of all of the
covenants, conditions and provisions on Lessee’s part to be observed and performed under this
Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term
hereof.

39. Options. If Lessee is granted an option, as defined below, then the following provisions shall
apply.

     39.1 Definition. “Option” shall mean: (a) the right to extend the term of or renew this Lease
or to extend or renew any lease that Lessee has on other property of Lessor, (b) the right of first
refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to
purchase or the right of first refusal to purchase the Premises or other property of Lessor.

     39.2 Options Personal To Original Lessee. Any Option granted to Lessee in this Lease is
personal to the original Lessee, and cannot be assigned or exercised by anyone other than said
original Lessee and only while the original Lessee is in full possession of the Premises and, if
requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or
subletting.

     39.3 Multiple Options. In the event that Lessee has any multiple Options to extend or renew
this Lease, a later Option cannot be exercised unless the prior Options have been validly
exercised.

     39.4 Effect of Default on Options.

          (a) Lessee shall have no right to exercise an Option: (i) during the period commencing with
the giving of any notice of Default and continuing until said Default is cured, (ii) during the
period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii)
during the time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given
3 or more notices of separate Default, whether or not the Defaults are cured, during the 12 month
period immediately preceding the exercise of the Option.

          (b) The period of time within which an Option may be exercised shall not be extended or
enlarged by reason of Lessee’s inability to exercise an Option because of the provisions of
Paragraph 39.4(a).

          (c) An Option shall terminate and be of no further force or effect, notwithstanding Lessee’s
due and timely exercise of the Option, if, after such exercise and prior to the commencement of the
extended term, (i) Lessee fails to pay Rent for a period of 30 days after such Rent becomes due
(without any necessity of Lessor to give notice thereof), (ii) Lessor gives to Lessee 3 or more
notices of separate Default during any 12 month period, whether or not the Defaults are cured, or
(iii) if Lessee commits a Breach of this Lease.

40. Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor hereunder does
not Include the cost of guard service or other security measures, and that Lessor shall have no
obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the
Premises, Lessee, its agents and invitees and their property from the acts of third parties.

41. Reservations. Lessor reserves the right: (i) to grant, without the consent or joinder of
Lessee, such easements, rights and dedications that Lessor deems necessary, (ii) to cause the
recordation of parcel maps and restrictions, and (iii) to create and/or install new utility
raceways, so long as such easements, rights, dedications, maps, restrictions, and utility raceways
do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any
documents reasonably requested by Lessor to effectuate such rights.

42. Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of
money to be paid by one Party to the other under the provisions hereof, the Party against whom the
obligation to pay the money is asserted shall have the right to make payment “under protest” and
such payment shall not be regarded as a voluntary payment and there shall survive the right on the
part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there
was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party
shall be entitled to recover such sum or so much thereof as it was not legally required to pay.

43. Authority. If either Party hereto is a corporation, trust, limited liability company,
partnership, or similar entity, each

	 	 	 	 	 	 	 	 	 	 	 
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individual executing this Lease on behalf of such entity represents and warrants that he or she is
duly authorized to execute and deliver this Lease on its behalf. Each party shall, within 30 days
after request, deliver to the other party satisfactory evidence of such authority.

44. Conflict. Any conflict between the printed provisions of this Lease and the typewritten or
handwritten provisions shall be controlled by the typewritten or handwritten provisions.

45. Offer. Preparation of this Lease by either party or their agent and submission of same to the
other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to
be binding until executed and delivered by all Parties hereto.

46. Amendments. This Lease may be modified only in writing, signed by the Parties in interest at
the time of the modification. As long as they do not materially change Lessee’s obligations
hereunder, Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be
reasonably required by a Lender in connection with the obtaining of normal financing or refinancing
of the Premises.

47. Multiple Parties. If more than one person or entity is named herein as either Lessor or Lessee,
such multiple Parties shall have joint and several responsibility to comply with the terms of this
Lease.

48. Waiver of Jury Trial. The Parties hereby waive their respective rights to trial by jury in any
action or proceeding involving the Property or arising out of this Agreement.

49. Mediation and Arbitration of Disputes. An Addendum requiring the Mediation and/or the
Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease o is
þ is not attached to this Lease.

ATTACHMENT: California Sale/Lease Americans with Disabilities Act, Hazardous Materials, and Tax
Disclosure

	 	 	 	 	 	 	 	 	 	 	 
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LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED
HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE
PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE
COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO
THE PREMISES.

ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE
ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS
LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:

1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.

2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID
INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES,
THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING
SYSTEMS, COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT AND THE SUITABILITY OF THE PREMISES
FOR LESSEE’S INTENDED USE.

WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE
LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES ARE
LOCATED.

The parties hereto have executed this Lease at the place and on the dates specified above their
respective signatures.

	 	 	 	 	 	 	 	 	 
	Executed at:	 	 	 	 	 	Executed at: San Jose, Ca
	 

	 	 	 	 	 	 
	on:

	 	 	 	 	 	on:	 	 
	  

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By LESSOR:	 	 	 	 	 	By LESSEE:
	See attached signature page.	 	 	 	NexVerse Networks, Inc., a Delaware
corporation
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:
	 	/s/ Gursharan S. Sidhu
	 
 
	 	 	 	 	 	 
	Name Printed:	 	 	 	 	 	Name Printed: Gursharan S. Sidhu
	 

	 	 	 	 	 	 
	Title:	 	 	 	 	 	Title: Chief Technical Officer & V.P.
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:
	 	/s/ Ravinder P. Singh
	  

	 	 	 	 	 	 
	Name Printed:	 	 	 	 	 	Name Printed: Ravinder P. Singh
	  

	 	 	 	 	 	 
	Title:	 	 	 	 	 	Title: VP Business Development
	 

	 	 	 	 	 	 
	Address:	 	 	 	 	 	Address: 926 Rock Avenue
	 

	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	          San Jose, Ca 95131
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Telephone: (___)	 	 	 	 	 	Telephone: (408) 952-3300
	 

	 	 

	 	 	 	 	 	 
	Facsimile: (___)	 	 	 	 	 	Facsimile: (408) 546-0089
	 

	 	 

	 	 	 	 	 	 
	Federal ID No.	 	 	 	 	 	Federal ID No. 94-3409691
	 

	 	 

	 	 	 	 	 	 

These forms are often modified to meet changing requirements of law and needs of the
industry. Always write or call to make sure you are utilizing the most current form: American
Industrial Real Estate Association, 700 South Flower Street, Suite 600, Los Angeles, CA 90017.
(213} 687-8777.

©Copyright 1999 By American Industrial Real Estate Association.

All rights reserved.

No part of these works may be reproduced in any form without permission in writing.

	 	 	 	 	 	 	 	 	 	 	 
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LESSOR:

	 	 	 	 	 
	BALCH LLC, a California
limited liability company	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jack Balch	 	 
	 

	 	 	 	 
	 

	 	     Jack Balch, Member	 	 
	 
	 	 	 	 
	By:

	 	SHERMAN D. BALCH AND

CHERYL A. BALCH 1979 LIVING

TRUST, Member	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Sherman D. Balch
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Sherman D. Balch, Trustee	 	 

	 	 	 	 	 
	By:

	 	JKLM, LLC, a California limited

liability company, Member
	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jack Balch
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Jack Balch	 	 

	 	 	 	 	 
	By:

	 	SDB PROPERTIES, LLC, a California

limited liability company, Member
	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Sherman D. Balch
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Sherman D. Balch, Trustee of	 	 
	 

	 	 	 	the Sherman D. Balch and	 	 
	 

	 	 	 	Cheryl A. Balch 1979 Living	 	 
	 

	 	 	 	Trust, manager	 	 

 

 

ADDENDUM TO STANDARD INDUSTRIAL/COMMERCIAL

SINGLE-TENANT LEASE — NET

	 	 	 
	LESSOR:

	 	BALCH LLC., a California limited liability company
	 
	 	 
	LESSEE:

	 	NEXVERSE NETWORKS, INC., a Delaware corporation
	 
	 	 
	PREMISES:

	 	A Portion of Building 2, 926 Rock Avenue, San Jose, California
	 
	 	 
	DATE:

	 	December ___, 2001

 

          This addendum (“Addendum”) is an attachment to and amendment of that Standard
Industrial/Commercial Single-Lessee Lease — Net (the “Form Lease”), of even date herewith, naming
the above-referenced lessor as “Lessor,” and the above-referenced lessee as “Lessee.” Words and
phrases used in this Addendum shall, except as modified herein, have the same meaning as set forth
in the Form Lease. In the event of any conflict between the provisions of the Form Lease and this
Addendum, the provisions of this Addendum shall prevail. All references in the following paragraphs
are to corresponding paragraphs of the Form Lease, except as otherwise expressly provided herein.
The Form Lease and this Addendum shall be referred to collectively as the “Lease.”

	1.2(b)	: Parking. Lessor will provide parking for the exclusive use of Lessee on the portion of the
parking area of the Property shown on Exhibit B. Lessee’s use of such parking shall be at no
cost to Lessee during the term of this Lease or any extensions thereof.
	 
	1.5	Base Rent: The Base Rent payable by Lessee for the Premises shall be as follows:

	 	 	 	 	 
	 

	 	MONTHS
	 	BASE RENT SCHEDULE
	 

	 	01- 12:
	 	$40,090.14* ($1.62 per rentable square foot per month)

The initial Base Rent set forth above (which is based on the approximate rentable square footage of
24,747), shall be adjusted to reflect the final Premises rentable square footage (as determined by
Lessor’s architect following substantial completion of Lessor’s Work as defined below) multiplied
by $1.62 per rentable square foot. The rentable square footage shall be measured from the outside
surface of exterior walls for the ground floor and the outside surface of mezzanine/upper floor
walls and shall include any stairwells, elevator shafts, or other vertical penetrations.

 

*On each anniversary date of the Commencement Date, the Base Rent shall be increased by three
percent (3%) over the prior year’s Base Rent throughout the Original Term.

	2.9:	 	 Common Areas — Rules and Regulations. If any rule or regulation is in conflict with any term,
covenant or condition of this Lease, this Lease shall prevail. Following a written request
from Lessee, Lessor shall use commercially reasonable efforts to enforce the rules and
regulations against other tenants of the Project.
	 
	2.10:	 	 Common Areas — Changes. Lessor’s rights pursuant to this Paragraph 2.10 shall be subject to
the condition that exercise of any of such rights shall not unreasonably interfere with
Lessee’s use of the Premises or decrease the number of parking places allocated to Lessee,
except on a temporary basis during the course of work and except as required to comply with
applicable legal requirements.
	 
	3.3	 	Delay in Possession: If this Lease is terminated pursuant to Paragraph 3.3 of the Form Lease,
Lessor shall promptly return to Lessee any prepaid Rent and any Security Deposit deposited by
Lessee.
	 
	4.2(a):	 	 Common Area Operating Expenses. Notwithstanding anything to the contrary contained in this
Lease, the following shall not be included within Common Area Operating Expenses:
	 
	 	 	Leasing commissions, attorneys’ fees, costs, disbursements, and other expenses incurred in
connection with negotiations or disputes with tenants, or in connection with leasing,
renovating, or improving space for tenants or other occupants or prospective tenants or
other occupants of the Building.
	 
	 	 	The cost of any service sold to any tenant (including Lessee) or other occupant to the
extent to which Lessor is reimbursed as an additional charge or rental over and above the
basic rent and escalations payable under the lease with that tenant.

1

 

	 	 	Any depreciation on the Building or Property.
	 
	 	 	Costs of capital repairs, improvements and equipment, except for those amortized in
accordance with Paragraph 4.2(a)(viii) of the Form Lease.
	 
	 	 	Expenses in connection with services or other benefits of a type that are not provided to
Lessee but which are provided another tenant or occupant of the Building or Property.
	 
	 	 	Costs incurred due to Lessor’s violation of any terms or conditions of this Lease or any
other lease relating to the Building or Property.
	 
	 	 	Overhead profit increments paid to Lessor’s subsidiaries or affiliates for management or
other services on or to the building or for supplies or other materials to the extent that
the cost of the services, supplies, or materials exceeds the cost that would have been paid
had the services, supplies, or materials been provided by unaffiliated parties on a
competitive basis.
	 
	 	 	All interest, loan fees, and other carrying costs related to any mortgage or deed of trust
or related to any capital item, and all rental and other payable due under any ground or
underlying lease, or any lease for any equipment ordinarily considered to be of a capital
nature (except janitorial equipment which is not affixed to the Building.)
	 
	 	 	Advertising and promotional expenditures.
	 
	 	 	Costs of repairs and other work occasioned by fire, windstorm, or other casualty of an
insurable nature to the extent covered by Lessor’s insurance proceeds.
	 
	 	 	Any costs, fines, or penalties incurred due to violations by Lessor of any governmental rule
or authority, this Lease or any other lease in the Property, or due to Lessor’s negligence
or willful misconduct.
	 
	 	 	Management costs to the extent they exceed 3% of the Base Rent for management fees.
Earthquake insurance premiums, except to the extent required by any lender of Lessor.
	 
	 	 	Costs for sculpture, paintings, or other objects of art (nor insurance thereon or
extraordinary security in connection therewith).
	 
	 	 	Wages, salaries, or other compensation paid to any executive employees above the grade of
building manager.
	 
	 	 	The cost of correcting any building code or other violations in work originally performed by
Lessor which were violations prior to the Commencement Date.
	 
	 	 	The cost of containing, removing, or otherwise remediating any contamination of the Property
(including the underlying land and ground water) by any toxic or hazardous materials
(including, without limitation, asbestos and “PCB’s”) where such contamination was not
caused by Lessee.
	 
	4.2(d)	 	Common Area Operating Expenses: At Lessor’s election from time to time, Common Area
Operating Expenses, including insurance premiums and Real Property Taxes, shall be paid in
monthly or quarterly estimated installments (with appropriate annual adjustment) or shall be
paid by Lessee within twenty (20) days of periodic (but no more frequently than monthly)
invoices from Lessor.
	 
	4.2(e):	 	Common Area Operating Expenses. Lessor shall keep complete and accurate records in
accordance with good bookkeeping and accounting practices regarding all Common Area Operating
Expenses. On Lessee’s request, but no more frequently than once each year, Lessor shall
provide Lessee with paid invoices or other reasonable supporting documentation for specified
items of Common Area Operating Expenses.
	 
	5.	 	Security Deposit. On the Commencement Date and on the first day of each month thereafter,
Lessee shall deposit with Lessor as a security deposit an amount equal to $0.06 per rentable
square foot of the Premises. In addition to the security deposit payments described in the
preceding sentence, if Lessee fails to pay any Rent when due for two (2) consecutive months or
for a total of three (3) months at any time during the Original Term, Lessee shall deposit
with Lessor an additional security deposit amount equal to one month’s Base Rent at the rate
applicable for the final month of the Original Term. All security deposit amounts paid under
this Addendum Paragraph 51 shall be deemed collectively the “Security Deposit” and shall be
governed by Paragraph 5 of the Form Lease.
	 
	6.2(h)	 	Existing Hazardous Substances: Lessee acknowledges and agrees that Lessor has made available
for inspection by Lessee’s representatives copies of the environmental reports and related
documents in Lessor’s possession which are comprised of those listed on Exhibit C (the
“Environmental Reports”) and that Lessee is accepting possession of the Premises with
knowledge of the items and conditions disclosed in the Environmental Reports. Except as
disclosed in the

2

 

	 	 	Environmental Reports, to the best of Lessor’s actual knowledge without investigation, the
Premises are in compliance with all Applicable Requirements regarding Hazardous Substances.
Lessee shall promptly notify Lessor of any inquiry, test, investigation, or enforcement
proceeding by, against or affecting Lessee or the Premises concerning a Hazardous Substance
that Lessee has actual knowledge of. To the best of Lessor’s knowledge, Lessor has not used,
generated, manufactured, produced, stored, released, discharged or disposed of on, under,
about the Premises (or off-site of the Premises that might affect the Premises) Hazardous
Substances or knowingly allowed any other person or entity to do so. Lessee shall comply
with all statutes, laws, ordinances, rules, regulations and precautions mandated or advised
by any Federal, State, local or governmental agency with respect to the use, generation,
storage or disposal of Hazardous Substances, except for Hazardous Substances at the Premises
prior to the Delivery Date, for which Lessor shall hold Lessee harmless pursuant to
Paragraph 6.2(e) of the Form Lease. Except to the extent the Hazardous Substance in question
was introduced, released, emitted, used, stored, manufactured, transported or discharge by
Lessee and/or its sublessees, agents, contractors, representatives or employees, Lessee
shall not be responsible for and hereby is released from any claim, obligation, liability,
damage or expense with respect to any Hazardous Substance for which Lessor is responsible
under Paragraph 6.2(e) of the Form Lease. Lessor may satisfy Lessor’s obligations under
Paragraph 6.2(e) using attorneys and other professionals and consultants selected and
directed by Lessor; provided, however, Lessee may at Lessee’s own expense use separate
counsel and/or consultants selected by Lessee. Lessee’s indemnification of Lessor, pursuant
to Paragraph 8.7 of the Form Lease, shall extend to all liabilities, claims, causes of
action, and expenses including all foreseeable and unforeseeable consequential damages,
directly or indirectly arising out of the presence, use, generation, storage or disposal of
Hazardous Substances in, on, under or about the Premises, including, without limitation, the
cost of any required or necessary repairs, cleanup, or detoxification and preparation of any
closure or other required plans, whether such action is attributable, directly or
indirectly, to use, generation, storage or disposal of Hazardous Substances by Lessee or any
person claiming under Lessee, except for Hazardous Substances for which Lessor is
responsible under this Lease. Without limiting the generality of any other indemnity
provision in this Lease, Lessee shall indemnify, protect, defend and hold Lessor harmless
from and against all claims, losses, damages or liabilities suffered or incurred by Lessor
as a result of the use or storage of any Hazardous Substance by Lessee and/or its
sublessees, agents, contractors, representatives or employees, including without limitation,
compensating Lessor for any reduction in the fair market value and/or fair rental value of
the Premises. Neither the written consent by Lessor to the use, generation, storage or
disposal of Hazardous Substances nor the strict compliance by Lessee with all statutes,
laws, ordinances, rules, regulations and precautions pertaining to the Hazardous Substances
shall excuse Lessee from Lessee’s obligations pursuant to this Paragraph and Paragraph 6.2
of the Form Lease.
	 
	7.3(b)	 	Consent. Lessor may withhold consent in its sole discretion to any proposed structural
Utility Installations or Alterations or to any work involving penetration of the Building roof
or involving Hazardous Substances.
	 
	7.4:	 	Ownership; Removal; Surrender; and Restoration. Notwithstanding any provision in this Lease to
the contrary:
	 
	(a)	 	Lessee shall not be required to remove (i) any improvements and fixtures installed by
Lessee in, on or about the Premises pursuant to Lessee’s repair obligation under this Lease,
or (ii) any Alterations or Utility Installations for which Tenant has obtained Lessor’s
written consent, unless Lessor has indicated, at the time of granting such consent, that
such removal will be required. Lessor shall be entitled to require removal of any or all
Alterations and Utility Installations that are not generic office improvements; however, in
no event shall Lessee be required to remove more than forty percent (40%) of the Alterations
and Utility Installations that are generic office improvements, provided the same are
surrendered in good condition and repair. Lessee shall in no event remove electrical, HVAC,
or telecommunication wiring, conduit, and network or equipment serving the Building.
	 
	(b)	 	Lessee at its cost shall repair and restore the Premises prior to surrender and
following any removal of Alterations, Utility Installations, Trade Fixtures or other items
Lessee is required or elects to remove in accordance with this Lease. This shall include
repairing and replacing the Premises as necessary, including all floor coverings, walls, and
ceiling surfaces as necessary to fully match surrounding areas and to leave the Premises in
good repair and condition ready to lease to subsequent tenants without need for further
repairs. Lessee’s failure to surrender the Premises in the required condition by the
Expiration Date or earlier termination of this Lease shall be deemed a holdover by Lessee
including payment of holdover Rent under Paragraph 26 of the form Lease.
	 
	(c)	 	Lessee acknowledges and agrees that the Premises contain Alterations, Utility
Installations, Trade Fixtures and personal property installed by the previous tenant and
that ownership and other rights to certain of these items may be claimed by the previous
tenant or its creditors and/or by Lessor.
	 
	8.7	 	Indemnity. Except for Lessee’s negligence or willful misconduct, Lessor shall indemnify,
protect, defend and hold harmless Lessee and Lessee’s employees, officers, agents, directors,
and shareholders, and the successors and assigns of each of the foregoing, against and from
any and all claims, demands, losses, liabilities, damages, costs, and expenses, (including,
without limitation, attorneys’ and consultants’ fees and the costs and expenses of defense)
arising out of, involving, or in connection with, Lessor’s use and/or occupancy of the
Building.
	 
	 	 	8.8: Exemption of Lessor from Liability. The provisions of Paragraph 8.8 shall in no circumstances
be interpreted to absolve Lessor from any liability incurred due to Lessor’s gross negligence
or willful misconduct.
	 
	9.6(c):	 	Abatement of Rent; Lessee’s Remedies. Notwithstanding anything to the contrary in Paragraph
9, if Lessee’s use of the Premises is substantially impaired due to casualty damage and
resulting repair work for a period in excess of twelve (12)

3

 

	 	 	months, Lessee shall have the right to terminate this Lease by at lease thirty (30) days’
written notice to Lessor at any time thereafter until Lessee’s use of the Premises is
substantially restored; provided, however, (i) Lessor may render Lessee’s termination
ineffective by giving Lessee written notice, within twenty (20) days following receipt of
Lessee’s termination, of Lessor’s election to continue Lessee’s right to abate Rent
regardless of Rental Value insurance proceeds, and (ii) Lessee’s termination right shall not
apply if the damage was caused by the use, occupancy, act or omission of Lessee or its
subtenants or their respective representatives, agents, contractors, licensees or employees.
	 
	10.	 	Real Property Taxes: Notwithstanding anything to the contrary contained in this Lease, Lessee
shall not be required to pay any portion of any tax or assessment expense (i) in excess of the
amount which would be payable if such tax or assessment expense were paid in installments over
the longest possible term; or (ii) imposed on land and improvements other than the Project.
	 
	 	 	Lessee at its cost shall have the right, subject to Lessor’s prior written approval (which
shall not be unreasonably withheld or delayed), to seek a reduction in the assessed
valuation of the Premises or to contest any tax increase that is to be paid by Lessee. If
Lessee seeks a reduction or contests such tax increase, Lessee shall still be obligated to
pay its share of any such tax increase being so contested. Lessor shall not be required to
join in any proceeding or contest brought by Lessee unless the provisions of any Applicable
Requirement require that the proceeding or contest be brought by or in the name of Lessor.
In that case, Lessor shall join in the proceedings or contest or permit it to be brought in
Lessor’s name as long as Lessor is not required to bear any cost and provided Lessee keeps
current on all tax obligations pursuant to this Lease, including any tax being contested
hereunder. Lessee, on final determination of the proceedings or contest, shall pay promptly
or discharge its share of any tax increase based on the decision or judgment rendered,
together with all costs, charges, interest and penalties incidental to the decision or
judgment.
	 
	12.1	 	Lessor’s Consent Required: Notwithstanding anything contained in Paragraph 12 of the Form
Lease to the contrary, Lessee shall not assign or transfer the Lease nor sublet all or any
portion of the Premises without the prior written consent of Lessor, which consent shall not
be unreasonably withheld or delayed. As a reasonable condition to Lessor’s consent to any
assignment or sublease pursuant to Paragraph 12 of this Lease, Lessee shall pay to Lessor
seventy-five percent (75%) of all base rent, additional rent and other consideration payable
by such assignee or sublessee in excess of the rent amounts payable under this Lease (prorated
in the case of a sublease of a portion of the Premises), except that Lessee may recover
commercially reasonable third-party brokerage commissions incurred by Lessee (consistent with
industry standard rates) and reasonable legal fees incurred by Lessee for such assignment or
sublease (not to exceed Five Thousand Dollars [$5,000]). If part of the consideration for such
assignment or sublease is payable other than in cash, Lessor’s share of that noncash
consideration shall be in a form reasonably satisfactory to Lessor.
	 
	 	 	Notwithstanding Paragraph 12 of the Form Lease, Lessee may, without Lessor’s prior written
consent, but subject to the conditions below, sublet all or any portions of the Premises or
assign this Lease to (i) a subsidiary, affiliate or corporation controlling, controlled by
or under common control with Lessee; (ii) a successor corporation related to Lessee by
merger, acquisition, consolidation, non-bankruptcy reorganization or government action; or
(iii) a purchaser of substantially all of Lessee’s stock, or its assets located at the
Premises along with Lessee’s business in California (individually, a “Permitted Transferee”,
and collectively, “Permitted Transferees”), provided that the following conditions are met:
(a) as of the date of such transfer, the sublessee or assignee (pursuant to subsection (ii)
or (iii) above) shall have a tangible net worth and working capital at least equal to
Twenty-five Million Dollars ($25,000,000); (b) the sublessee or assignee (or any affiliate
thereof) is not in default, and has not been in repeated default, under any lease for a
property in which Lessor or any affiliate of Lessor has an ownership or management interest;
and (c) the sublessee or assignee is not a party to any substantial litigation or bankruptcy
proceedings. For purposes of this Lease, a sale of Lessee’s capital stock through any public
exchange shall not be deemed an assignment, subletting or other transfer of this Lease or
the Premises requiring Lessor’s consent.
	 
	12.2(a)(i)	 	References to subletting or sublessee contained in or relating to Paragraph 12.2(a)(i)
are hereby deleted. Any sublease shall reference and incorporate Lessor’s rights under
Paragraph 12.3 of the Form Lease.
	 
	13.2	 	Remedies. Notwithstanding the provisions of Paragraph 13.2, Lessor’s determination of an
emergency shall require the good faith determination thereof by Lessor, and, in such case,
Lessor shall be required to use commercially reasonable efforts to provide Lessee with notice
reasonable in such situation prior to performing any affirmative duty or obligation of Lessee
pursuant to Paragraph 13.2.

2. Base Rent for the First Offer Space shall initially be equal to $1.87 per
rentable square foot (with annual adjustments as provided in Addendum
Paragraph 1.5) for a First-Offer Notices given before June 1, 2002, and
shall be equal to the amount (including periodic increases) specified in
Lessor’s First-Offer Notice for a First-Offer Notice given on or after June
1, 2002.

3. Lessee’s Share of Operating Expenses, Real Property Taxes, Insurance
Costs and other applicable charges payable by Lessee under this Lease shall
be adjusted to reflect the increased rentable square footage of the
Premises.

4. From and after the Delivery Date, Lessee shall pay monthly Security
Deposits amounts with respect to the First-Offer Space in accordance with
Addendum Paragraph 5.

4

 

     Lessee’s lease of the First-Offer Space shall be on the same terms and conditions as affect
the original Premises from time to time except as otherwise provided in this Addendum Paragraph 53.
Lessee’s obligation to pay Rent with respect to the First-Offer Space shall begin on the Delivery
Date subject to Addendum Paragraph 53.D above. Lessee shall be responsible for performing any
required Lessee Improvements with respect to the First-Offer Space in accordance with Addendum
Paragraph 52.

	 	F.	 	Confirmation of Terms. If Lessee timely and validly exercises the First-Offer
Right, Lessor and Lessee shall, within ten (10) days after Lessor’s delivery of the
First-Offer Space to Lessee, confirm in writing the addition of the First-Offer Space
to the Premises on the terms and conditions set forth in this Addendum Paragraph 53.
The written confirmation shall confirm:

1. The actual Delivery Date;

2. The rentable square footage of the Premises with the addition of the
First-Offer Space;

3. The percentage that constitutes Lessee’s Share as adjusted in accordance
with this Addendum Paragraph 53 to reflect the increased rentable square
footage of the Premises;

4. Any other terms that either party reasonably requests be confirmed with
respect to the First-Offer Space.

	 	G.	 	Condition of the Premises and Brokerage Commissions for the First-Offer Space.
If Lessee timely and properly exercises its First-Offer Right, Lessee shall accept the
First-Offer Space in its then “As-Is” condition and, accordingly, Lessor shall not be
required to perform any additional improvements or pay any additional construction
allowances, brokerage commissions or other fees relating to the First-Offer Space.
	 
	 	H.	 	Restrictions on First-Offer Right. The First-Offer Right described in this
Addendum is personal to Lessee and any Permitted Transferee and may not be assigned,
voluntarily or involuntarily, separate from or as part of the Lease other than to a
Permitted Assignee. At Lessor’s option, all rights of Lessee under the First-Offer
Right described in this Addendum shall terminate and be of no force or effect if any of
the following individual events occur or any combination thereof occur; (1) Lessee is
in default beyond any applicable cure period at the time Lessee exercises its
First-Offer Right; (2) Lessee fails to pay Rent when due for two (2) consecutive months
or for a total of three (3) months at any time during the Original Term; (3) Lessee
assigns its rights and obligations under all or part of the Lease, or Lessee subleases
all or part of the Premises (except to a Permitted Transferee); (4) Lessee’s then
tangible net worth and working capital are not at least equal to Lessee’s tangible net
worth and working capital as of the date of this Lease; (5) Lessee has failed to
properly exercise its First-Offer Right of Lessee’s plans and specifications as
required herein. Lessee shall construct the Lessee Improvements in accordance with the
plans approved by Lessor, all Applicable Requirements, Paragraph 7.3 and the other
applicable provisions of this Lease and using only contractors approved by Lessor.

	53.	 	Right of First Offer to Expand the Premises:

	 	A.	 	Right of First Offer. Lessor grants to Lessee a right of first offer
(“First-Offer Right”) with respect to all (but not a portion) the space of the Building
not already included in the Premises (First Offer Space). Lessee’s First Offer Right
shall be on the terms and conditions set forth in this Addendum Paragraph 53.
	 
	 	B.	 	Procedure for Lessor’s Offer. Lessor shall provide Lessee with written notice
(“First-Offer Notice”) when Lessor commences written correspondence with a prospective
Lessee for any First-Offer Space. The First-Offer Notice shall:

1. Notify Lessee that Lessor has commenced written correspondence with a
prospective tenant; and

2. If given on or after June 1, 2002, state Base Rent (including periodic
increases) and Lease Term for which Lessor intends to offer such space to
other prospective lessees.

	 	C.	 	Procedure for Lessee’s Acceptance. If Lessee wishes to exercise Lessee’s
First-Offer Right, Lessee shall, within ten (10) days (for a First-Offer Notice given
before June 1, 2002) and with five (5) days (for a First-Offer Notice given on or after
June 1, 2002) after delivery of the First-Offer Notice to Lessee, deliver notice to
Lessor of Lessee’s intention to exercise its First-Offer Right with respect to all of
the First-Offer Space. Regardless of whether the prospective tenant in question desires
to lease all or a portion of the First-Offer Space, Lessee must elect to exercise its
First-Offer Right, if at all, only with respect to all the First-Offer Space, and
Lessee may not elect to lease only a portion of that space. If Lessee does not exercise
its First-Offer Right within the response period specified above the First-Offer Right
shall terminate and Lessor shall be free to lease the First-Offer Space to anyone on
any terms at any time during the Lease Term, without any obligation to provide Lessee
with a further right to lease that space; provided, however, that after June 1, 2002,
Lessor shall not enter into a lease for the use of the First-Offer Space with any other
person or entity on basic terms materially

5

 

	 	 	 	less favorable to Lessor than those set forth in the First-Offer Notice without
giving Lessee at least five (5) days prior written notice of such proposed lease and
the opportunity (during such five (5) day period by delivery of written notice to
Lessor) to agree to lease the First-Offer Space on the same terms and conditions as
those of such proposed lease.

	 	D.	 	Delivery of First-Offer Space. If Lessee timely and validly exercises the
First-Offer Right, Lessor shall deliver the First-Offer Space to Lessee on a date
selected by Lessor (“Delivery Date”). Lessor shall not be liable to Lessee or otherwise
be in default under this Lease if Lessor is unable for any reason to deliver the
First-Offer Space to Lessee on the projected Delivery Date, provided that Lessee’s
obligations respecting the First-Offer Space shall abate until such delivery of
possession. If Lessor has not delivered the First-Offer Space to Lessee within 60 days
following the delivery date indicated in the First Offer Notice, then Lessee shall have
the right thereafter to withdraw its acceptance of the First-Offer Space.
	 
	 	E.	 	Terms and Conditions Applicable to First-Offer Space. If Lessee timely and
validly exercises the First-Offer Right, then, beginning on the Delivery Date and
continuing for the balance of the Original Term (including any extensions):

1. The First-Offer Space shall be part of the Premises under this Lease (so
that the term “Premises” in this Lease shall refer to the space in the
Premises immediately before the Delivery Date plus the First-Offer Space);
and,

	13.5	 	Interest. The interest set forth in paragraph 13.5 of the Form Lease shall not apply for the
first time in any twenty-four (24) month period unless Lessee’s failure to make payment
continues for five (5) days after notice of nonpayment from Lessor, but the interest shall
accrue as of the due date. After the first such notice in any twenty-four (24)-month period,
the interest shall be payable on any subsequent late payment during the twenty-four (24)-month
period without necessity of notice.
	 
	16(c)	 	Financial Statements. Lessor shall not request financial statements of Lessee more
frequently than once every six (6) months during the term, unless Lessee is in default or
unless requested in connection with any request from a lender, prospective buyer, or
prospective lender of Lessor.
	 
	30.	 	Subordination, Non-Disturbance and Attainment Agreement: Following receipt of Lessee’s
written request, Lessor shall use reasonable efforts to obtain a written agreement from the
holder of any mortgage, deed of trust or similar security interest in the Premises, providing
for the recognition of Lessee’s rights, interests and options under the Lease in the event of
a foreclosure, deed given in lieu of foreclosure or sale under the mortgage, deed of trust or
other similar security instrument (“Non-Disturbance Agreement”). Lessee shall pay all of
Lessor’s reasonable costs incurred in efforts to obtain the Non-Disturbance Agreement and any
fees payable to the lender in connection therewith
	 
	50.	 	Signs: Any signs Lessee installs on or about the Premises shall comply with all applicable
governmental rules and regulations and Lessor’s sign criteria, and shall be subject to
Lessor’s prior approval, which shall not be unreasonably withheld or delayed. Subject to the
preceding sentence, Lessee shall be entitled to the maximum signage permitted by the City of
San Jose.
	 
	51.	 	Lessee’s Work; Condition of Premises: If, and only if, Lessor elects to have the unit
physically demised and partitioned from the rest of the Building, Lessor shall perform the
following work to the extent not already completed (collectively, Lessor’s Work): construction
of finished, painted interior demising walls for the Unit; installation, as necessary, of
standard 110 volt electrical service within the Unit; and installation, as necessary, of
equipment and duct work for provision of standard office HVAC service to the Unit. Lessor’s
Work may be performed after the Commencement Date and delivery of possession to Lessee without
any delay in the Commencement Date or the commencement of Lessee’s obligation to pay Rent.
Lessor’s Work shall be constructed in accordance with all Applicable Requirements.
Notwithstanding anything to the contrary contained in the Form Lease, Lessee acknowledges that
except as expressly set forth in this Addendum, neither Lessor nor any representative of
Lessor has made any representation or warranty (express or implied) with respect to the
Premises and that Lessee is relying solely on its own inspections and investigations with
respect to the Applicable Requirements, Hazardous Substances, physical condition and all other
matters concerning or affecting the Premises. To the extent permitted by law and necessary for
the enforcement during the Original Term. Without limiting the preceding sentence, the
warranties in Paragraphs 2.2 and 2.3 of the Form Lease shall not apply and Lessee shall be
treated as a prior owner/occupant under Paragraph 2.5 of any warranties from third-party
contractors or suppliers (but not Lessor) with respect to the Premises, Lessor shall assign to
Lessee its rights with respect to any such third-party warranties.
	 
	52.	 	Lessee Improvements: Other than the Lessor’s Work, Lessee shall be responsible for all
improvements and other work (collectively, the “Lessee Improvements”) necessary to prepare the
Premises for the operation of Lessee’s business. Lessee Improvements shall include all work
necessary to reroute and install as necessary lines and equipment for separate telephone,
alarm, plumbing and all other services to the Premises, which shall be done so as to minimize
any temporary disruption and to provide permanent full services to the remainder of the
Building. Before commencement of the Lessee Improvements in the Premises, Lessee shall submit
plans and specifications for Lessee’s Work and the name of the contractors Lessee desires to
perform such work, to Lessor for review and approval, which approval shall not be unreasonably
withheld or conditioned. Lessor shall respond, in approval or disapproval, of such submittals
within ten (10) days of receipt. Lessee shall not commence work until Lessor has approved
Lessee’s plans and specifications and

6

 

	 	 	Lessee’s contractors. Lessee shall pay Lessor’s actual plan review costs and fees in an
amount not to exceed One Thousand Dollars ($1,000) for the review in strict accordance with
the provisions of this Addendum; or (6) Lessee no longer occupies all or any part of the
Premises under the Lease.
	 
	 	 	Notwithstanding anything to the contrary contained in this Lease, the foregoing prohibition
(and the corresponding prohibition under Paragraph 39.2 of the Form Lease) against
exercising the First-Offer Right when Lessee is not in full possession of the Premises shall
not apply if Lessee has subleased twenty-five percent (25%) or less of the Premises, so long
as Lessee is otherwise occupying the Premises in accordance with this Lease.

	 	I.	 	Time is of the Essence. Time is of the essence with respect to each and every
time period set forth in this Addendum.

	54.	 	Contingencies. Lessor’s obligations under this Lease are contingent upon: (i) Lessor’s
obtaining legal possession of the Premises from the previous tenant, to Lessor’s satisfaction
and (ii) written approval of this Lease by Lessor’s lender. Lessor agrees to use reasonable
and good faith efforts to obtain the foregoing. In the event the foregoing are not obtained
within thirty (30) days following mutual execution of this Lease, either party may terminate
this Lease on ten (10) days’ written notice to the other party; provided, however, if within
ten (10) days following receipt of such a notice of termination from Lessee, Lessor notifies
Lessee in writing that the contingencies have been satisfied, Lessee’s notice of termination
shall be rendered ineffective and this Lease shall continue in full force and effect.

[SIGNATURES ON NEXT PAGE]

7

 

	 	 	 	 	 	 	 	 	 	 	 
	LESSOR:

	 	 	 	 	 	LESSEE:
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BALCH LLC, a California limited liability

company	 	 	 	NEXVERSE NETWORKS, INC., a Delaware

corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jack Balch
 

	 	 	 	 	 	 	 	 
	 

	 	Jack Balch, Member
	 	 	 	By:
	 	/s/ Gursharan S. Sidhu	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Gursharan S. Sidhu	 	 
	By:

	 	SHERMAN D. BALCH AND	 	 	 	 	 	 	 	 
	 

	 	CHERYL A. BALCH 1979 LIVING
	 	 	 	Title:
	 	Chief Technical Officer &. V.P	 	 
	 

	 	TRUST, Member	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 
	 

	 	 	 	 
	 	 
	 	 	 	 

	 	 
	 

	 	By:
	 	/s/ Sherman D. Balch
 

	 	 	 	By: 	 	/s/ Ravinder P. Singh
 
	 	 	 
	 

	 	 	 	Sherman D. Balch, Trustee
	 	 	 	Name:
	 	 Ravinder P. Singh	 	 
	 

	 	 	 	 	 	 	 	Title:
	 	 VP, Business Development	 	 

					
	By:

	 	JKM, LLC, a California limited
	 	 
	 

	 	liability company, Member	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jack Balch
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Jack Balch, Manager	 	 

	 	 	 	 	 
	By:

	 	SDB PROPERTIES, LLC, , a California
	 	 
	 

	 	limited liability company, Member	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Sherman D. Balch
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	    Sherman D. Balch, Trustee of	 	 
	 

	 	 	 	    the Sherman D. Balch and	 	 
	 

	 	 	 	    Cheryl A. Balch 1979 Living	 	 
	 

	 	 	 	    Trust, Manager	 	 

8exv10w27

 

Exhibit 10.27

	 	 	 
	 

	 	30960 Huntwood Avenue 
	 

	 	Hayward, CA 94544
	 

	 	510/429-9400

	 

	 	FAX 510/429-9966

April 15, 2002

Mr. Gursharan S Sidhu

Mr. Ravinder P. Singh

Nexverse Networks, Inc.

926 Rock Avenue

San Jose, CA

	RE:	 	 Lease dated December 2001 by and between Balch LLC (“Lessor”) and Nexverse Networks, Inc.
(“Lessee”) for a 24,747 square foot portion of 926 Rock Avenue, San Jose, CA (“Premises”)

Gentlemen:

As discussed, this letter shall serve to confirm our agreement to void Paragraph 53 “Right of First
Offer to Expand the Premises” of the above referenced Lease and Lessee agrees to waive its rights
contained in Paragraph 53 of the Lease. Except as stated in this letter, the Lease will remain in
full force and effect.

Please confirm your agreement by signing where indicated and return a signed original to us. This
letter may be signed in counterparts.

Should you have any questions, please do not hesitate to call. Thank you for your cooperation.

Sincerely,

	 	 	 	 	 	 	 
	BALCH LLC

	 	AGREED & ACCEPTED:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	/s/ Gursharan S. Sidhu	 	 	 	 
	 

	 	 

Gursharan S. Sidhu
	 	 	 	 
	 

	 	CFO & Vice President	 	 	 	 
	 

	 	Date: 5/2/2002	 	 	 	 
	Jack W. Balch

	 	/s/ Ravinder P. Singh	 	 	 	 
	 

	 	 	 	 	 	 
	Member

	 	Ravinder P. Singh	 	 	 	 
	 

	 	Vice President Business Development	 	 	 	 
	MS/jal

	 	Date: 5/2/2002	 	 	 	 

1.

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