Document:

exv10w6

 

Exhibit 10.6

			
	 	 	 
	[*]	 	Certain information in this document has been omitted and filed
separately with the  Securities and Exchange Commission.
Confidential treatment has been requested with  respect to the
omitted portions.

Contract No.:                                        

Effective Date:                    

LICENSE AGREEMENT

     This Agreement (“Agreement”) between Vitesse Semiconductor Corporation (“Vitesse”), a Delaware
corporation with its principal office at 741 Calle Plano, Camarillo, California 93012, U.S.A. and
Mellanox Technologies, Ltd. (“Mellanox”), an Israeli Company with its principal office at PO Box
586 Yokneam, Israel 20692, is dated as of December 16, 2002.

Background.

     Vitesse is a leading provider of high-speed physical layer semiconductor products for the
Communications Market. Mellanox is a fabless semiconductor company with special knowledge of
Infiniband technology for switching and routing applications. Mellanox desires to license certain
intellectual property of Vitesse to produce and market certain devices and Vitesse is willing to
license such intellectual property to Mellanox on the terms and conditions set forth in this
Agreement.

     In consideration of the mutual covenants contained in this Agreement and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
agree as follows:

	1.	 	License:

	 	1.1	 	Subject to the payment of Royalties to Vitesse by Mellanox (described in Section 2),
Vitesse hereby grants to Mellanox a
non-exclusive, worldwide, perpetual right and license (the
“License”) to:

	 	1.1.1.	 	use the Vitesse Technology, more specifically described on Exhibit A, and all
patents, copyrights, trade secrets, and documentation related thereto, in existence or
hereafter created, modified or developed, that comprise the Vitesse Technology
(collectively, the “Technology”) for the development of the Mellanox devices
specified in Exhibit B and upgrades to those devices (the “Products”) and,
	 
	 	1.1.2.	 	use, make, have made, distribute, market, transfer and sell the Products that
incorporate the Technology.

	 	1.2	 	Vitesse agrees to provide the following to Mellanox:

	 	1.2.1.	 	The 3.1Gb/s SerDes macro cell embodying the Vitesse Technology implemented in
TSMC 0.13 micron CMOS process.
	 
	 	1.2.2.	 	Access to future versions of the 3.1Gb/s SerDes macro implemented in more
advanced CMOS technologies as they become available, as negotiated between
Mellanox and Vitesse.
	 
	 	1.2.3.	 	Technical support on issues related to functionality as reasonably requested by
Mellanox.
	 
	 	1.2.4.	 	Sufficient documentation to enable Mellanox to utilize the Vitesse Technology.

 

 

	 	1.2.5.	 	Technical and performance information as developed by Vitesse.
	 
	 	1.2.6.	 	Access to relevant 13um test chips

	2.	 	Royalty Payment:

	 	2.1	 	Royalty payments for products sold by Mellanox that use the Vitesse
Technology will be
based on a per SerDes Port basis described in section 2.2 below.
	 
	 	2.2	 	Royalty Calculation:

	 	2.2.1.	 	Mellanox will pay Vitesse [*].
	 
	 	2.2.2.	 	The maximum per-chip royalty in CY2003 and 2004 will be [*] regardless
of the number of ports. The maximum per-chip royalty in CY2005 and beyond will
be [*] regardless of the number of ports.
	 
	 	2.2.3.	 	Mellanox will [*] in payments to Vitesse within [*] years from such time
that Mellanox begins production shipments of its products incorporating Vitesse
0.13u SERDES technology.
	 
	 	2.2.4.	 	In the event that Mellanox has not paid Vitesse [*] within [*] per item 2.2.3 above, Mellanox will pay Vitesse a one time balloon payment equal to the
difference between the cumulative amount paid at the end of [*].
	 
	 	2.2.5.	 	Based on Mellanox’s current forecast, [*] dollars in fees paid by Mellanox to
Vitesse will be achieved by Q4, 2005.
	 
	 	2.2.6.	 	Mellanox’s obligation to pay Vitesse a per-port fee will terminate at such a
time that
Mellanox has paid Vitesse [*] dollars in total fees for use of Vitesse
0.13u SERDES Technology.

	 	2.3	 	Royalties shall be paid quarterly on or before 30 days after the end of
the quarter in which
sales of Products giving rise to the Royalty payment obligation occurred. Each
Royalty
payment shall be accompanied by a report (the “Report”) setting forth the number of
Mellanox products sold, the number of SerDes ports per product, and the calculation
of the
Royalty due thereon.
	 
	 	2.4	 	Mellanox shall each keep accurate and correct records of Products sold
under this Agreement
appropriate to determine the amount of royalties due to Vitesse. Such records
shall be
retained for at least five (5) years from their creation and shall be available for
audit at the
expense of the questioning party by an independent accountant, approved by both
parties, for
the sole purpose of verifying royalty payments hereunder. The selected accountant
shall only
disclose to the questioning party information relating to the accuracy of reports
and payments
made under this Agreement. If an audit shows a discrepancy in excess of five percent
(5%)
for any twelve (12) month period, then the party in error shall reimburse the other
for the cost
of the audit plus any funds owed (including an interest rate that equals U.S.
federal funds rate plus 5 % on a yearly basis), such payment to be due within thirty
(30) days from the notice of
payment due. An audit may be requested on thirty (30) days prior written notice and
not more than once in any calendar year. Any audit shall be conducted from 9 a.m.
to 5 p.m.

 

			
	[*]	 	Certain information on this page has been omitted and filed
separately with the  Securities and Exchange Commission.
Confidential treatment has been requested with  respect to the
omitted portions.

 2.

 

	 	 	 	Monday through Friday other than on holidays generally recognized by government
agencies in the location where the audited records are located.
	 
	 	2.5	 	Other Considerations

	 	2.5.1.	 	Mellanox agrees that it will only use Vitesse Technology for integrated SerDes,
for
those products defined in Exhibit B, during the term of this Agreement.
	 
	 	2.5.2.	 	Mellanox will recommend Vitesse products to customers.

	3.	 	Intellectual Property.

	 	3.1	 	Without written approval by Vitesse, Mellanox has no right to reverse engineer,
copy,
duplicate in any way, disassemble,
de-compile, or use in any way not specified by this
Agreement, any form of the Technology which is provided to Mellanox under this
Agreement.
	 
	 	3.2	 	Title to all materials and all documentation furnished by Vitesse to Mellanox will
remain in
Vitesse. Mellanox will deliver to Vitesse any and all materials, documentation and
property,
including all copies thereof on whatever media rendered, upon the first to occur of:

	 	3.2.1.	 	Vitesse’s request;
	 
	 	3.2.2.	 	termination of this Agreement.

	4.	 	Warranties.

	 	4.1	 	Vitesse represents and warrants to Mellanox as follows:

	 	4.1.1.	 	Vitesse has the authority to grant the rights and License describe herein.
	 
	 	4.1.2.	 	Vitesse owns or has rights to use and exploit the Technology. No material claims
have been made against Vitesse asserting the invalidity or unenforceability of,
or
with respect to Technology, the misuse of, the Technology, nor is Vitesse aware
that
any such claims exist. Vitesse has not received a notice of conflict of the
Technology with the asserted rights of others, or otherwise challenging its
rights to
use any of the Technology. None of the rights of Vitesse under the Technology
will
be adversely affected by the execution, delivery or performance of this
Agreement,
or the consummation of the transactions contemplated herein.
	 
	 	4.1.3.	 	The Technology will in all relevant ways conform with the Function Data Sheet, of
which a preliminary version is attached hereto as Exhibit A (collectively, the
“Specifications”).
	 
	 	4.1.4.	 	If the Technology fails to conform to the Specifications in Exhibit A, Vitesse
shall
seek to correct such defect or deficiency as soon as reasonably practicable
following
receipt of a notice of such defect or deficiency. If Vitesse does not or cannot
correct

 3.

 

	 	 	 	the defect or deficiency Mellanox shall have the option of terminating
this Agreement in accordance with Section 8.

	5.	 	Confidential Information.

	 	5.1	 	Both parties agree that all confidential and proprietary information will be subject
to the
terms and conditions contained in the
Non-Disclosure Agreement executed by the parties,
dated as of December 16, 2002 (the “NDA”), which is incorporated herein by reference as
Exhibit C. Both parties shall take all necessary and appropriate steps to maintain the
confidentiality of the intellectual property and trade secrets comprising the Technology and
to keep such from entering the public domain. Mellanox will promptly notify Vitesse of all
names of employees, consultants or any other who has been given access to the Technology
by Mellanox.
	 
	 	5.2	 	Neither party will, without the prior written consent of the other party in each instance:

	 	5.2.1.	 	use in advertising, publicity or otherwise the other’s name or the names of the
other’s personnel, nor any trade name, trademark or logo owned by the other or
	 
	 	5.2.2.	 	make any disclosure of the existence or terms of this Agreement other than to a
party’s attorneys, accountants, auditors, investment bankers and other similar
advisers who (a) need to know the information, (b) are informed by you of the
confidential nature of the information and (c) agree to keep the information
confidential.

	6.	 	Indemnity.

	 	6.1	 	Vitesse will indemnify, defend and hold Mellanox harmless from and against any and all
claims, demands, liabilities, losses, damages, judgments or settlements, including all
reasonable costs and expenses related thereto, including attorneys’ fees (“Losses”), to the
extent arising from a claim that the Technology infringes or violates any patent, copyright,
mask work right, trade secret or other intellectual property right of a third party.
	 
	 	6.2	 	Mellanox will indemnify, defend and hold Vitesse harmless from and against any and all
claims, demands, liabilities, losses, damages, judgments or settlements, including all
reasonable costs and expenses related thereto, including attorney’s fees (“Losses”) to
the
extent the Products cause damage to property, personal injury and losses resulting
therefrom,
and Mellanox is liable for such damage.
	 
	 	6.3	 	Each party will provide the other with reasonable written notice of claims that might
trigger
the indemnification obligations above. Vitesse and Mellanox each agrees to provide
reasonable assistance to and cooperate with the other in the defense of any claims of
infringement or violation. The obligations of each party to indemnify the other pursuant
to
this Agreement apply only if the party seeking indemnification provides reasonable notice
of
and reasonable assistance in defense of any claim or violation as provided above.
Further, the
obligations of an indemnifying party to indemnify the indemnified party pursuant to this
Agreement will apply only if, at the indemnifying party’s request, the indemnifying party
is
given sole and exclusive control of the defense of such claim or violation and any and
all
negotiations relating to such claim or violation. Notwithstanding the foregoing, (a)
the

 4.

 

	 	 	 	indemnified party may, at its own cost and expense, participate, through attorneys or
otherwise, in such investigation, study and defense of such claim or violation and any
appeal arising therefrom and (b) no settlement of such claim or violation that involves a
remedy other than the payment of money by the indemnifying party will be entered into by
the indemnifying party without the prior written consent of the indemnified party, which
consent will not be unreasonably withheld.

	7.	 	Disclaimer of Damages.

	 	7.1	 	Except for its obligations under Section 6, neither party will be liable to the
other for indirect, punitive, special or consequential damages of any nature.

	8.	 	Term and Termination.

	 	8.1	 	This Agreement shall terminate on the failure of a party to cure any material default
under
this Agreement within ninety (90) days from the giving of written notice of such default
by
the other party (or, if cure cannot be accomplished within ninety days, then failure to
use its
best efforts to cure the default within such period).
	 
	 	8.2	 	Effective immediately and without any requirement of notice, either party may, at its
option,
terminate this Agreement and/or suspend its performance in the event that:

	 	8.2.1.	 	the other party files a petition in bankruptcy, files a petition seeking
any
reorganization, arrangement, composition, or similar relief under any law regarding
insolvency or relief for debtors, or makes an assignment for the benefit of creditors;
	 
	 	8.2.2.	 	a receiver, trustee or similar officer is appointed for all or substantially all of the
business or property of such party;
	 
	 	8.2.3.	 	any involuntary petition or proceeding under bankruptcy or
insolvency laws is
instituted against such party and not stayed, enjoined or discharged within sixty
days; or
	 
	 	8.2.4.	 	the other party adopts a resolution for discontinuance of its business or for
dissolution.

	 	8.3	 	Upon termination of this Agreement by Mellanox without cause, Mellanox shall have the
right thereafter and for a period of one year from the effective date of the termination,
to:

	 	8.3.1.	 	market or have marketed the Products in stock or production as of the effective
date
of termination; and,
	 
	 	8.3.2.	 	complete or have completed all orders and firm commitments for Products accepted
or made prior to the effective date of termination, subject to the payment by
Mellanox to Vitesse of Royalties.

	 	8.4	 	In the event Mellanox ceases to market the Products or fails to keep the Products
reasonably
available in the market, Vitesse shall have the right to terminate this Agreement, and all
rights in the Technology shall revert back to Vitesse, subject to Mellanox’s rights to
continue
to:

 5.

 

	 	8.4.1.	 	market or have marketed the Products for a period of one year from the
effective
date of termination; and
	 
	 	8.4.2.	 	complete or have completed all orders and firm commitments for Products accepted
or made prior to the effective date of termination, subject to the payment by
Mellanox to Vitesse of Royalties.

	 	8.5	 	Termination pursuant to this Agreement shall be without prejudice to any rights or
remedies
of the parties at law or in equity and shall not relieve any party from any liabilities
arising
prior to such termination.
	 
	 	8.6	 	Royalties are non-refundable and cannot be claimed back by Mellanox upon termination.

	9.	 	Miscellaneous.

	 	9.1	 	Neither party may assign or transfer any interest in this Agreement without the prior
written
consent of the other, provided, however, that either party may assign its rights and
obligations to an affiliate or to a successor in interest to substantially all of that
party’s
business and assets. This Agreement is binding upon and will inure to the benefit of the
parties and their respective successors, assigns, and legal representatives.
	 
	 	9.2	 	The parties are independent contractors and not partners, agents, or employees of each
other.
	 
	 	9.3	 	This Agreement, the NDA and the Exhibits hereto contain the entire agreement between
the
parties relating to their subject matter and there are no agreements or understandings except
as set forth herein and therein.
	 
	 	9.4	 	This Agreement will be governed by and construed in
accordance with the laws of
California. Contractor agrees that, at Vitesse’s election, all actions and proceedings arising
from or related to this Agreement will be litigated in courts within Los Angeles, California.
Contractor consents and submits to the jurisdiction and venue of any local, state or federal
court located within Los Angeles, California.
	 
	 	9.5	 	If either party employs attorneys to enforce any rights arising out of or relating to this
Agreement, the prevailing party shall be entitled to recover reasonable attorneys’
fees and
costs.
	 
	 	9.6	 	This Agreement may not be modified or amended except by a writing signed by both parties.

	 	9.6.1.	 	Any notice required or permitted to be given hereunder shall, except where
specifically provided otherwise, be given in writing to the person listed below by
personal delivery, registered or certified mail, return receipt requested, express
delivery service or facsimile. The date upon which any such notice is personally
delivered, (or if the notice is given by registered or certified mail, three (3) business
days from sending, or if by express delivery service or facsimile upon receipt) shall
be deemed to be the date of such notice, irrespective of the date appearing therein.
	 
	 	9.6.2.	 	If to Vitesse: Vitesse Semiconductor Corporation

                    
741 Calle Plano

                    Camarillo, California 93012

                    USA

 6.

 

                     Attention: Lynn Jones, Manager of Legal Relations

	 	9.6.3.	 	If to Mellanox: Mellanox Technologies Inc.

                     2900 Stender Way

                     Santa Clara, California 95054

                     USA

                     Attention: Merle McClendon

	 	 	 	or addressed to a person or party at such other address as that party may have given by
written notice in accordance with this provision.
	 
	 	9.7	 	In the event of a breach or threatened breach of the provisions of Section 5, the
non-breaching party will be entitled to an injunction restraining such breach or threatened breach
without having to prove actual damages or threatened irreparable harm. Such injunctive
relief as the non-breaching party may obtain will be in addition to all of the rights and
remedies available at law and in equity.
	 
	 	9.8	 	The invalidity in whole or in part of any provision of this Agreement shall not affect the
validity of other provisions.
	 
	 	9.9	 	Either party’s failure to insist on performance of any provision of this Agreement, or to
exercise any right herein conferred, will not be construed as a waiver of the other
party’s
right to assert or rely on that provision or right, or any similar provision or right,
in any later
instance.
	 
	 	9.10	 	This Agreement may be signed in counterparts and all signed copies of this Agreement
will
together constitute one original of this Agreement.

	10.	 	The parties shall perform such further acts and shall execute and deliver such further
instruments as
are reasonably necessary to carry out the purposes of this Agreement.
	 
	11.	 	If Mellanox desires to produce devices with additional or other functionality containing
Vitesse’s
intellectual property the parties will negotiate, in good faith, the terms and conditions of a
separate
agreement.
	 
	12.	 	Sections 2, 3, 4, 5, 6, 7, 8.3, 8.4, 8.5, and 9 will survive the expiration or termination of
this
Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	VITESSE SEMICONDUCTOR	 	 	 	MELLANOX TECHNOLOGIES, LTD.	 	 
	CORPORATION	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ [ILLEGIBLE]
 

	 	 	 	By:
	 	/s/ E. Waldman
 

	 	 
	Title: VP/GM	 	 	 	Title: CEO	 	 
	Date: Feb 06, 2003	 	 	 	Date: Jan 31, 2003	 	 

Exhibits:

A: Specification of Vitesse Technology

B: Definition of Mellanox Products Using the Technology

C: NDA

 7.

 

Exhibit A

The “Technology”

Summary of Vitesse 3.125Gb/s SerDes IP in 0.13um CMOS

- Vitesse Confidential -

Overview

This summary outlines the salient features of the SerDes intellectual properties (IP’s) developed
by Vitesse Corp. in 0.13um CMOS technology. In order to support a wide variety of configuration,
the [*] are [*] into [*] as following:

	 	•	 	[*]
	 
	 	•	 	[*]
	 
	 	•	 	[*]
	 
	 	•	 	[*]
	 
	 	•	 	[*]
	 
	 	•	 	[*]

These
[*] are designed to require [*] when combining them into [*] [*]. Following figure shows the
[*] of these [*] to form a typical [*].

[*]
 

 

			
	[*]	 	Certain information on this page has been omitted and filed separately with the Securities
and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions.

8.

 

[*] Descriptions

This section provides a short description of each Serdes IP cell. These cells are [*] to
[*] the [*] up to [*]. Detailed specifications for each [*] are available.

[*]

Following are features of the [*]

	 	•	 	Provide a [*] which can [*] at the [*] to the [*].
	 
	 	•	 	Provide [*] at the [*] to support [*] when [*] from the [*] into the [*].
	 
	 	•	 	Provide [*] to the [*] to [*].
	 
	 	•	 	Provide features to [*] [*] [*] for the [*] and the [*] [*] of the [*] itself.

[*]

Following
are features of the [*].

	 	•	 	Provide a [*] which can [*] the [*] into [*] [*] [*].
	 
	 	•	 	Provide [*] to [*]the [*] from the [*].
	 
	 	•	 	Provide [*] to the [*] to [*].
	 
	 	•	 	Provide features to [*] [*] [*] for the [*] and the [*] [*] of the [*] itself.

[*]

Following
are features of the [*].

	 	•	 	[*] designed to be [*] with [*] and [*] standard[*].
	 
	 	•	 	[*] to [*] due to [*]. The
[*] of the [*] can be [*] up to [*].
	 
	 	•	 	Provide [*] [*]. The [*] for
[*] can be [*] up to [*].
	 
	 	•	 	[*] and [*] function.

[*]

Following
are features of the [*].

	 	•	 	[*] designed to be [*] with [*] and [*] standard [*].
	 
	 	•	 	[*] to [*]. The [*] of the [*] can be [*] up to [*].
	 
	 	•	 	[*] and [*] function.

[*]

Following
are features of the [*].

	•	 	[*] to [*] the [*] to [*]. It provides a [*] [*] of [*].

 

			
	[*]	 	Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions.

9.

 

	 	•	 	[*] of the [*] at [*] to the
[*] and [*].
	 
	 	•	 	[*] to [*] This [*] can be
[*] to be a [*] [*] of the [*].
	 
	 	•	 	Provide [*] and [*] [*]
functions. Provide functions to force the [*] to
[*] to [*] or [*].
	 
	 	•	 	[*] [*] and [*].

[*]

Following
are features of the [*].

	 	•	 	Provide a [*] and [*] method to support
[*] on the [*]. This
method allows a [*] to address a [*] of [*] or to [*] of [*]
of [*] on the [*].
	 
	 	•	 	Provide [*] to [*] the [*]
between the [*] of the [*].
	 
	 	•	 	Provide [*] to [*] [*] of the
[*] over [*] or [*] [*].
	 
	 	•	 	Provide [*] of the [*] to [*]
[*] and [*].

 

			
	[*]	 	Certain information on this page has been omitted and filed separately with the Securities
and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions.

10.

 

Exhibit B

The “Products”

Mellanox
Infiniband products: [*] [*].

The
Technology may be used to implement a [*] in Infiniband
[*] [*].

 

			
	[*]	 	Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with
respect to the omitted
portions.

11.

 

Contract No.:                                                            

Effective Date:                                         

Exhibit C

Bi-Lateral Confidentiality and Non-Disclosure Agreement

This
Bi-Lateral Confidentiality and Non-Disclosure Agreement is entered into and effective on
December 16, 2002 by and between Mellanox Technologies, Ltd. having a principal place of business
at PO Box 586, Yokneam, Israel 20692 (“Customer”) and Vitesse Semiconductor Corporation, a
Delaware, U.S.A. corporation with a principal place of business at
741 Calle Plano, Camarillo,
California 93012.

Either or both Vitesse and Mellanox have disclosed or will disclose to the other certain confidential and proprietary information (“Information”) further described
as: the Technology and Intellectual Property described in Exhibit B of this agreement.

The
parties desire that Information exchanged be used solely for the purpose of conducting business with each other and desire to set forth their agreement regarding the limited use and preservation of
confidentiality of such Information. Each of the parties acknowledges that the other party’s Information is a valuable, special, and unique asset of such party.
Each party therefore agrees, for itself and on behalf of its officers, directors,
agents, employees and affiliates, to use
reasonable care to keep all such Information in confidence, to use
Information solely for conducting business with the other, and not to
disclose any portion of the Information to any third party without the prior written consent of the disclosing party.

In order to ensure that the Information disclosed by one party to the other is used only in accordance with the purposes stated above, the parties agree to the following:

	1.	 	Information that is easily markable, whether in hard copy or electronic form, that the disclosing party in good faith
regards as confidential and/or proprietary will be clearly marked as
“Confidential”, “Proprietary”,
or with other words indicating the
sensitive nature of the Information. Any information orally disclosed by one party to the other will be deemed Information
hereunder if, within thirty (30) days after the disclosure, the
disclosing party so identifies it in writing to the other. Neither
party will disclose to third parties or fail to treat as Information any information received orally from the disclosing party
unless the disclosing party fails for thirty (30) days after such disclosure to identify the Information disclosed as being
confidential or proprietary.
	 
	2.	 	Information otherwise protected hereunder will not include Information that the receiving party can demonstrate: (i) is now
in or hereafter enters the public domain without any violation of this Agreement; (ii) was known to the receiving party prior to
the time of disclosure by the disclosing party; or (iii) was disclosed in good faith to the receiving party by a third party
legally entitled to disclose the same; provided, however, that specific Information will not be deemed to be within any of the
foregoing exceptions merely because it is in the scope of more general Information.
	 
	3.	 	If the receiving party is confronted with legal action to disclose Information, the receiving party will promptly notify the
disclosing party. The receiving party will reasonably assist the disclosing party in obtaining a protective order requiring that
any portion of the Information required to be disclosed be used only for the purpose for which a court issues an order or for
such other purposes as required by law. Each party will bear its own legal expenses.
	 
	4.	 	All Information will remain the property of the disclosing party. At the disclosing party’s written request, the
Information in any tangible form will be promptly returned or destroyed together with all copies thereof. Upon written request,
the receiving party will provide written certification of the destruction.
	 
	5.	 	The parties each acknowledge that should this Agreement be breached, remedies available at law are inadequate, and proving
damages impracticable. The parties therefore agree that, in addition to all other rights and remedies available at law or in
equity, the aggrieved party will be entitled to injunctive relief upon any such breach. The breaching party will pay to the
aggrieved party all attorneys’ fees and costs incurred by the aggrieved party as a result of such breach.
	 
	6.	 	All notices required under this Agreement will be considered given if sent by certified mail, postage prepaid, and addressed
as shown in Section 9.6 of the agreement (unless the addresses have been changed by written notice):
	 
	7.	 	The term of this Agreement is three (3) years from the effective date. The obligations under this Agreement will survive for
five (5) years following termination of the parties’ association regardless of the manner of such termination, and will be
binding upon their successors and assigns.
	 
	8.	 	This Agreement will be governed by, and interpreted in accordance with, the laws of the State of California.
	 
	9.	 	The receiving party will comply in all respects with U.S.
Export and Re-Export laws and regulations applicable to any
Information.

IN WITNESS WHEREOF, the parties have executed this Agreement in duplicate originals.

	 	 	 	 	 	 	 
	Vitesse Semiconductor Corporation

	 	 	 	Mellanox Technologies, Ltd.	 	 
	 
	 	 	 	 	 	 
	/s/ Mark E. Koenig

	 	 	 	/s/ E. Waldman	 	 
	 

	 	 	 	 	 	 
	Name & Title Mark E. Koenig VP/GM

	 	 	 	Name & Title Eyal Waldman CEO	 	 
	Date Feb 06, 2003

	 	 	 	Date Jan 31, 2003exv10w7

 

Exhibit 10.7

NET LEASE AGREEMENT 

(Single Tenant)

For and in consideration of the rentals, covenants, and conditions hereinafter set forth, Landlord
hereby leases to Tenant, and Tenant hereby rents from Landlord, the herein described Premises for
the term, at the rental and subject to and upon all of the terms, covenants and agreements set
forth in this Net Lease Agreement (“Lease”):

     1. Summary of Lease Provisions.

          1.1 Tenant: Mellanox Technologies, Inc., a California corporation (“Tenant”).

          1.2
Landlord: S.I. Hahn, LLC, a California limited liability company
(“Landlord”).

          1.3 Date of Lease, for reference purposes only: January 1, 2002.

          1.4 Premises: That entire building (“Building”), consisting of approximately
twenty three thousand eight hundred (23,800) square feet, more or less, located at 2900-2902
Stender Way in the City of Santa Clara, County of Santa Clara, State of California, shown cross-
hatched on the site plan attached hereto as Exhibit “A”, together with certain rights
appurtenant thereto. (Paragraph 2.1)

          1.5 Term: Fifty-four (54) months, unless earlier terminated in accordance with the terms of
this Lease. (Paragraph 3)

          1.6 Commencement Date: January 1, 2002. (Paragraph 3)

          1.7
Ending Date: June 30, 2006. (Paragraph 3)

          1.8 Rent:

	 	 	 	 	 	 	 	 	 
	Months Initial Lease Term	 	Monthly Rent NNN
	1-6
	 	$	24,000	 	 	 	1 - 02	 
	7-18
	 	$	40,000	 	 	 	7 - 02	 
	19-30
	 	$	41,600	 	 	 	7 - 03	 
	31-42
	 	$	43,264	 	 	 	7 - 04	 
	43-54
	 	$	44,995	 	 	 	7 - 05	 

(Paragraph 4)

Receipt of the first month’s Rent is payable by Tenant at execution of this Lease and shall be
applied by Landlord to such first month’s Rent.

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          1.9 Use of Premises: General office, research and development and product
demonstration. (Paragraph 6)

          1.10 Security Deposit: Forty-four Thousand Nine Hundred Ninety-five Dollars ($44,995).
Landlord acknowledges that it already is in receipt of Thirty Thousand Dollars ($30,000) from
Tenant and concurrently with the execution of this Lease, Tenant shall pay to Landlord the
remaining Fourteen Thousand Nine Hundred Ninety-five Dollars ($14,995) of the Security Deposit
(Paragraph 5)

          1.11 Addresses for Notices:

          To Landlord:

          SI Hahn LLC

          c/o SIH Investment, Inc.

          21580 Stevens Creek Blvd., Suite 107

          Cupertino, CA. 95014

          Attn:
Sang Hahn

          To Tenant: To the Premises.

          1.12 Non-exclusive Right to Use No More than ninety-two (92) parking spaces within the Common
Area. (Paragraph 2.1)

          1.13 Summary Provisions in General. Parenthetical references in this
Paragraph 1 to other paragraphs in this Lease are for convenience of reference, and designate some
of the other Lease paragraphs where applicable provisions are set forth. All of the terms and
conditions of each such referenced paragraph shall be construed to be incorporated within and are
made a part of each of the above referring Summary of Lease Provisions. In the event of any
conflict between any Summary of Lease Provision as set forth above and the balance of the Lease,
the latter shall control.

     2. Property Leased.

          2.1 Premises. Landlord hereby leases to Tenant and Tenant hereby leases from
Landlord, upon the terms and conditions herein set forth, that certain building (“Premises”)
referred to in Paragraph 1.4 above, shown cross-hatched on the site plan attached hereto as
Exhibit “A”. In addition, Tenant shall have the following rights with respect to the real
property (excluding buildings located thereon) more particularly described in the legal
description attached as Exhibit “B” hereto (if applicable) and outlined in red on
Exhibit “A” (“Common Area”): (i) the non-exclusive right to use no more than the number of
parking spaces set forth in Paragraph 1.12 above, within the Common Area (and not allocated for
the exclusive use of another tenant of Landlord); and (ii) such other rights as are necessary and
convenient to Tenant’s possession of the Premises or performance of Tenant’s obligations under
this Lease. Notwithstanding the number of parking spaces designated for Tenant’s non-exclusive
use, in the

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event by reason of any rule, regulation, order, law, statute, ordinance or other requirement
of any governmental or quasi-governmental authority now or hereafter in effect (collectively,
“Laws”) relating to or affecting parking on the Common Area, or any other cause beyond Landlord’s
reasonable control, Landlord is required to reduce the number of parking spaces on the Common Area,
Landlord shall have the right to proportionately reduce the number of parking spaces designated
herein for Tenant’s non-exclusive use, but not below 75% of such number of parking spaces referred
to in Paragraph 1.12. In addition, Landlord grants to Tenant a non-exclusive easement for vehicular
ingress and egress in and over the paved roadways in the Common Area and pedestrian ingress and
egress in and over the Common Area.

     Landlord reserves the right to grant to tenants of the buildings or improvements which now
exist or may hereafter be constructed upon the Common Area or upon real property owned by Landlord
adjacent to the Common Area, and to the agents, employees, servants, invitees, contractors,
guests, customers and representatives of such tenants or to any other user authorized by Landlord,
the non-exclusive right to use the Common Area for pedestrian and vehicular ingress and egress and
vehicular parking unless the grant of such rights to tenants of such other buildings or
improvements would adversely affect access to the Premises or to the parking areas, or would
reduce the number of parking spaces available to Tenant, or would add or increase any costs or
expenses charged to Tenant by Landlord under this Lease (including, but not limited to, Common
Area Operating Expenses) beyond those costs reasonably anticipated to be incurred as a result of
the customary use of the parking areas by such other tenants and their respective agents,
employees, servants, invitees, contractors, guests, customers and representatives.

          2.2 Acceptance of Premises. Tenant acknowledges that prior to the execution of this
Lease, Tenant was occupying approximately 8,230 rentable square feet of the Building pursuant to
the terms of a Standard Form Sublease dated May 18, 2001, between Set Engineering, a California
corporation, as Sublease, and Tenant, as Sublessee (the “Mellanox Sublease”). Sublessor’s rights
and interests under the Mellanox Sublease referred to in the immediately preceding sentence were
assigned by Set Engineering to Landlord pursuant to the terms of that certain Assignment of
Tenant’s Interest in Lease and Sublease dated November 27, 2001. Landlord and Tenant acknowledge
and agree that the Sublease shall be deemed terminated as of December 31, 2001 (except that all of
Tenant’s obligations under the Sublease accruing prior to the Commencement Date of this Lease,
including, without limitation, all of Tenant’s indemnification obligations under the Sublease,
shall survive the termination of the Sublease), and this Lease shall govern the rights and
obligations of Landlord and Tenant with respect to the entire Premises as of the Commencement Date
and throughout the Lease Term (as defined in Paragraph 3.1. By taking possession of the balance of
the Premises not previously covered by the aforementioned Sublease, Tenant shall be deemed to have
accepted the entire Premises as being in good and sanitary order, condition and repair. Tenant
agrees to accept possession of the entire Premises in its then existing condition, “as-is”,
including all latent and patent defects, and subject to all applicable laws, covenants,
conditions, restrictions, easements and other matters of public record and the reasonable rules
and regulations from time to time promulgated by Landlord governing the use of the Premises and
Common Area. Landlord hereby represents to Tenant that, to the current actual knowledge of
Landlord (without any duty of inquiry or investigation), the structural roof and roof surface,
structural and exterior walls and foundations of the Premises are

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in good order and repair and the electrical, plumbing, lighting, heating and air
conditioning systems and any other building systems within the Premises are in good order,
condition and repair. Except as otherwise expressly provided in this Paragraph 2.2, Tenant
acknowledges that neither Landlord nor Landlord’s agents have made any representation or warranty
as to the suitability of the Premises for the conduct of Tenant’s business, the condition of the
Premises, or the use or occupancy which may be made thereof and Tenant has independently
investigated and is satisfied that the Premises are suitable for Tenant’s intended use and that the
Premises meets all governmental requirements for such intended use.

     In the event the Building is not in compliance with any applicable laws, rules, regulations
or ordinances in effect as of the Commencement Date of this Lease, Tenant shall have no obligation
to contribute to the cost of bringing the Building into such compliance. In the event any seismic
improvements are required as a result of any tenant improvement work contemplated to be performed
by Tenant pursuant to the terms of this Lease, then Tenant shall bear 100% of the costs of
undertaking such seismic improvements. Tenant shall not be liable under this Lease for the costs
of correcting defects in the construction of the Building or cleaning up or remediating any
environmental conditions that exist on, in or under the Premises or Building or Common Areas as of
the Commencement Date of this Lease, except to the extent caused by or contributed to by Tenant or
any of its agents, employees, contractors or other representatives.

     3. Term.

          3.1 Commencement Date. The term of this Lease (“Lease Term”) shall be for
the period specified in Paragraph 1.5 above, commencing on the date set forth in Paragraph 1.6
(“Commencement Date”). The expiration of the Lease Term or sooner termination of this Lease
is referred to herein as the “Lease Termination”.

          3.2 Delay of Commencement Date. Landlord shall not be liable for any damage or loss
incurred by Tenant for Landlord’s failure for whatever cause to deliver possession of the Premises,
or any portion thereof, by any particular date (including the Commencement Date), nor shall this
Lease be void or voidable on account of such failure to deliver possession of the Premises;
provided that if Landlord does not deliver possession of the Premises to Tenant by the date which
is ninety (90) days from the date this Lease is executed by both parties, Tenant shall have the
right to terminate this Lease by written notice delivered to Landlord within five (5) days
thereafter, and Landlord and Tenant shall be relieved of their respective obligations hereunder;
provided further that said ninety (90) day period shall be extended by the number of days work on
the Premises is delayed due to fault or neglect of Tenant, acts of Tenant or Tenant’s agents, or
due to acts of God, labor disputes, strikes, fires, rainy or stormy weather, acts or failures to
act of public agencies, inability to obtain labor or materials, earthquake, war, insurrection,
riots and other causes beyond Landlord’s reasonable control.

          3.3 Early Occupancy. Landlord hereby agrees that Tenant may enter the balance of the
Premises not covered by the Sublease referred to above prior to the

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Commencement Date for purposes of installing its telephone and other data and
telecommunications systems therein, to fixturize and perform general clean up. If Tenant takes
possession of the Premises prior to the Commencement Date, Tenant shall do so subject to all of
the terms and conditions hereof except that Tenant shall not be obligated to commence paying
Rentals (defined in Paragraph 4.3) provided for herein until the Commencement Date (i.e. January
1, 2002).

     4. Rent.

          4.1 Rent. Tenant shall pay to Landlord as rent for the Premises (“Rent”), in advance,
on the first day of each calendar month, commencing on the date specified in Paragraph 1.6 and
continuing throughout the Lease Term the Rent set forth in Paragraph 1.8 above. Rent shall be
prorated, based on thirty (30) days per month, for any partial month during the Lease Term. Rent
shall be payable without deduction, offset, prior notice or demand in lawful money of the United
States to Landlord at the address herein specified for purposes of notice or to such other persons
or such other places as Landlord may designate in writing.

          4.2 Late Charge. Tenant hereby acknowledges that late payment by Tenant to Landlord
of Rent or any other sums required to be paid by Tenant to Landlord under this Lease will cause
Landlord 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 on Landlord by the terms of any mortgage
or deed of trust covering the Premises. Accordingly, Tenant shall pay to Landlord, as Additional
Rent (as defined in Paragraph 4.3 below), without the necessity of prior notice or demand, a late
charge equal to four percent (4%) of any installment of Rent or other sum required to be paid by
Tenant to Landlord under this Lease which is not received by Landlord within five (5) days after
the due date for such installment. The parties hereby agree that such late charge represents a
fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant.
In no event shall this provision for a late charge be deemed to grant to Tenant a grace period or
extension of time within which to pay any installment of Rent or Additional Rent (defined in
Paragraph 4.3 below) or prevent Landlord from exercising any right or remedy available to Landlord
upon Tenant’s failure to pay such installment of Rent or Additional Rent when due, including
without limitation the right to terminate this Lease. In the event any installment of Rent or any
other sum required to be paid by Tenant to Landlord under this Lease is not received by Landlord
by the thirtieth (30th) day after the due date for such installment or sum, such installment or
sum shall bear interest at the annual rate set forth in Paragraph 35 below, commencing on the due
date for such installment or sum and continuing until such installment or sum is paid in full.

          4.3 Additional Rent. All taxes, charges, costs and expenses and other sums which
Tenant is required to pay hereunder (together with all interest and charges that may accrue
thereon in the event of Tenant’s failure to pay the same), and all damages, costs and expenses
which Landlord may incur by reason of any Default by Tenant shall be deemed to be additional rent
hereunder (“Additional Rent”). Additional Rent shall accrue commencing on the

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Commencement Date. In the event of nonpayment by Tenant of any Additional Rent, Landlord
shall have all the rights and remedies with respect thereto as Landlord has for the nonpayment of
Rent. The term “Rentals” as used in this Lease shall mean Rent and Additional Rent.

     5. Security Deposit. Concurrently with Tenant’s execution of this Lease, Tenant
shall deposit with Landlord an additional Fourteen Thousand Nine Hundred Ninety-five Dollars
($14,995) which, when added to the Thirty Thousand Dollar ($30,000) currently held by Landlord as
the security deposit paid by Tenant, as sublessee, under the Sublease referred to above, shall
constitute a Forty-four Thousand Nine Hundred Ninety-five Dollar ($44,995) security deposit under
this Lease (“Security Deposit”). Tenant acknowledges that Landlord shall not be obligated to return
such Thirty Thousand Dollars ($30,000) to Tenant following the termination of the Sublease referred
to above and, instead, such Thirty Thousand Dollars ($30,000) shall be part of the Security Deposit
paid by Tenant under this Lease. The $44,995 Security Deposit shall be held by Landlord as security
for the faithful performance by Tenant of each and every term, covenant and condition of this Lease
applicable to Tenant; and not as prepayment of Rent. Landlord shall not be obligated to segregate
such Security Deposit in a separate account or not commingle such Security Deposit with other funds
of Landlord. Landlord shall not be obligated to pay Tenant any interest on the Security Deposit. If
Tenant shall at any time fail to keep or perform any term, covenant or condition of this Lease
applicable to Tenant, including, without limitation, the payment of Rentals or those provisions
requiring Tenant to repair damage to the Premises caused by Tenant or to surrender the Premises in
the condition required pursuant to Paragraph 35 below, Landlord may, but shall not be obligated to
and without waiving or releasing Tenant from any obligation under this Lease, use, apply or retain
the whole or any part of the Security Deposit reasonably necessary for the payment of any amount
which Landlord may spend by reason of Tenant’s default or as necessary to compensate Landlord for
any loss or damage which Landlord may suffer by reason of Tenant’s default. In the event Landlord
uses or applies any portion of the Security Deposit, Tenant shall, within five (5) days after
written demand by Landlord, remit to Landlord sufficient funds to restore the Security Deposit to
its original sum (i.e. $44,995). Failure by Tenant to so remit funds shall be a Default by Tenant.
Should Tenant comply with all of the terms, covenants and conditions of this Lease applicable to
Tenant, the balance of the Security Deposit shall be returned to Tenant within fourteen (14) days
after Lease Termination and surrender of the Premises by Tenant; provided, however, if any portion
of the Security Deposit is to be applied to repair damages to the Premises caused by Tenant or
Tenant’s agents, to clean the Premises, or to remove alterations and restore the Premises pursuant
to Paragraph 13.2 below, then the balance of the Security Deposit shall be returned to Tenant no
later than thirty (30) days after the date Landlord receives possession of the Premises.

     6.  Use of Premises.

          6.1
Permitted Uses. Tenant shall use the Premises and the Common Area only in
conformance with applicable Laws for the purposes set forth in Paragraph 1.9 above, and for no
other purpose without the prior written consent of Landlord, which consent Landlord may withhold
in its sole discretion. Any change in use of the Premises or the Common Area without the prior
written consent of Landlord shall be a Default by Tenant. Tenant and Tenant’s agents

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shall comply with the provisions of any Declaration of Covenants, Conditions, and
Restrictions affecting the Premises and the Common Area.

          6.2 Tenant to Comply with Legal Requirements. Subject to the terms of the second
paragraph of Section 2.2 above, Tenant shall, at its sole cost, promptly comply with all Laws
relating to or affecting the use, occupational safety, occupancy or condition of the Premises or
the Common Area, now in force, or which may hereafter be in force, including without limitation
those relating to utility usage and load or number of permissible occupants or users of the
Premises, whether or not the same are now contemplated by the parties; with the provisions of all
recorded documents affecting the Premises or the Common Area insofar as the same relate to or
affect the use, occupational safety, occupancy, or condition of the Premises or the Common Area;
and with the requirements of any board of fire underwriters (or similar body now or hereafter
constituted) relating to or affecting the use, occupational safety, occupancy or condition of the
Premises or the Common Area. Tenant’s obligations pursuant to this Paragraph 6.2 shall include
without limitation maintaining or restoring the Premises and the Common Area and making structural
and non-structural alterations and additions in compliance and conformity with all Laws and
recorded documents relating to the use, occupational safety, occupancy or condition of the Premises
or the Common Area during the Lease Term; provided, however, that Landlord shall make any
alteration or addition required to bring the Premises or the Common Area into compliance with legal
requirements in effect at the time the Premises, any improvements installed therein by Landlord, or
the Common Area, respectively, were originally constructed. At Landlord’s option, Landlord may make
the required alteration, addition or change, and Tenant shall pay the cost thereof as Additional
Rent. The preceding notwithstanding, subject to the provisions of the second paragraph of Paragraph
2.2 above, Tenant shall have no obligation to correct any code violations or violations of Law that
may exist with respect to the Premises, the Building or the Common Area as of the Commencement Date
of this Lease. With respect to any structural alterations or additions as may be hereafter required
due to a change in Laws and unrelated to Tenant’s specific use of the Premises or the Common Area
or Tenant’s alterations or improvements, Tenant shall be required to pay the amortized cost of such
structural alteration or addition, which amount shall be determined as follows: (a) all costs paid
by Landlord to construct such alteration or addition (including financing costs) shall be fully
amortized over the useful life of such alteration or addition (as determined by Landlord in good
faith) with interest on the unamortized balance at the prevailing market rate Landlord would pay if
it borrowed funds to construct such alteration or addition from an institutional lender, and (b) as
Additional Rent, Tenant shall pay the entire monthly amortized payment with respect to such
structural alteration or addition. Tenant’s obligation to make payments under the immediately
preceding sentence with respect to any structural alteration or addition that is required due to a
change in Laws and unrelated to Tenant’s specific use of the Premises or Common Area or Tenant’s
alterations or improvements shall commence when such alteration or addition has been substantially
completed and shall cease upon the earlier of the expiration of the Lease Term (but not upon a
termination due to any Default on the part of Tenant) or the end of the term over which the costs
of constructing the particular alteration or addition were amortized. Payments of such Additional
Rent shall be made concurrently with payments of monthly Rent. Tenant shall obtain prior to taking
possession of the Premises any permits, licenses or other authorizations required for the lawful

operation of its

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business at the Premises. The judgment of any court of competent jurisdiction or the
admission of Tenant in any action or proceeding against Tenant, regardless of whether Landlord is
a party thereto or not, that Tenant has violated such Law or recorded document relating to the
use, occupational safety, occupancy or condition of the Premises or the Common Area shall be
conclusive of the fact of such violation by Tenant. Any alterations or additions undertaken by
Tenant pursuant to this Paragraph 6.2 shall be subject to the requirements of Paragraph 13.1
below.

          6.3 Prohibited Uses. Tenant and Tenant’s agents shall not commit or suffer to be
committed any waste upon the Premises. Tenant and Tenant’s agents shall not do or permit anything
to be done in or about the Premises or Common Area which will in any way obstruct or interfere with
the rights of any authorized users of the Common Area or occupants of neighboring property, or
injure or unreasonably annoy them. Tenant shall not conduct or permit any auction or sale open to
the public to be held or conducted on or about the Premises or Common Area. Tenant and Tenant’s
agents shall not use or allow the Premises to be used for any unlawful, immoral or hazardous
purpose or any purpose not permitted by this Lease, nor shall Tenant or Tenant’s agents cause,
maintain, or permit any nuisance in, on or about the Premises. Tenant and Tenant’s agents shall not
do or permit anything to be done in or about the Premises or Common Area nor bring or keep anything
in the Premises or Common Area which will in any way increase the rate of any insurance upon the
Premises or Common Area or any part thereof or any of its contents, or cause a cancellation of any
insurance policy covering the Premises or Common Area or any part thereof or any of its contents,
nor shall Tenant or Tenant’s agents keep, use or sell or permit to be kept, used or sold in or
about the Premises any articles which may be prohibited by a standard form policy of fire
insurance. In the event the rate of any insurance upon the Premises or Common Area or any part
thereof or any of its contents is increased because of the acts or omissions of Tenant or Tenant’s
agents, Tenant shall pay, as Additional Rent, the full cost of such increase; provided however this
provision shall in no event be deemed to constitute a waiver of Landlord’s right to declare a
default hereunder by reason of such increase or of any other rights or remedies of Landlord in
connection with such increase. Tenant and Tenant’s agents shall not place any loads upon the floor,
walls or ceiling of the Premises which would endanger the Premises or the structural elements
thereof, nor place any harmful liquids in the drainage system of the Premises. No waste materials
or refuse shall be dumped upon or permitted to remain upon any part of the Premises or Common Area
except in enclosed trash containers. No materials, supplies, equipment, finished products (or
semifinished products), raw materials, or other articles of any nature shall be stored upon, or be
permitted to remain on, any portion of the Common Area.

     Landlord shall have the right to require Tenant, at Tenant’s own expense and within a
reasonable period of time, to use Tenant’s commercially reasonable efforts to terminate or control
any picketing, work stoppage or other concerted activity related to Tenant’s business operations
to the extent necessary to eliminate any interference with the operation of the Common Area or
other tenants who use the Common Area. Nothing contained in this paragraph shall be construed as
placing Landlord in an employer-employee relationship with any of Tenant’s employees or with any
other employees who may be involved in such activity.

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          6.4 Hazardous Materials. Except as otherwise expressly provided in Section
25.1 below, neither Tenant nor Tenant’s agents shall permit the introduction, placement, use,
storage, manufacture, transportation, release or disposition (collectively “Release”) of any
Hazardous Material(s) (defined below) on or under any portion of the Premises or Common Area
without the prior written consent of Landlord, which consent may be withheld in the sole and
absolute discretion of Landlord without any requirement of reasonableness in the exercise of that
discretion. Notwithstanding the immediately preceding sentence to the contrary, Tenant may use de
minimis quantities of the types of materials which are technically classified as Hazardous
Materials but commonly used in domestic or office use (such as bathroom cleaners, toner, and
white-out) to the extent not in an amount, which, either individually or cumulatively, would be a
“reportable quantity” under any applicable Law. Tenant covenants that, at its sole cost and
expense, Tenant will comply with all applicable Laws with respect to the Release of such permitted
Hazardous Materials. Any Release beyond the scope allowed in this paragraph shall be subject to
Landlord’s prior consent, which may be withheld in Landlord’s sole and absolute discretion, and
shall require an amendment to the Lease in the event Landlord does consent which shall set forth
the materials, scope of use, indemnification and any other matter required by Landlord in
Landlord’s sole and absolute discretion. Tenant shall indemnify, defend and hold Landlord and
Landlord’s agents harmless from and against any and all claims, losses, damages, liabilities, or
expenses arising in connection with the Release of Hazardous Materials by Tenant, Tenant’s agents
or any other person using the Premises during the Lease Term. Tenant’s obligation to defend, hold
harmless and indemnify pursuant to this Paragraph 6.4 shall survive Lease Termination.

     As used in this Lease, the term “Hazardous Materials” means any chemical, substance, waste or
material which has been or is hereafter determined by any federal, state or local governmental
authority to be capable of posing risk of injury to health or safety, including without
limitation, those substances included within the definitions of “hazardous substances,” “hazardous
materials,” “toxic substances,” or “solid waste” under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, the Resource Conservation and Recovery Act of 1976, and
the Hazardous Materials Transportation Act, as amended, and in the regulations promulgated
pursuant to said laws; those substances defined as “hazardous wastes” in section 25117 of the
California Health & Safety Code, or as “hazardous substances” in section 25316 of the California
Health & Safety Code, as amended, and in the regulations promulgated pursuant to said laws; those
substances listed in the United States Department of Transportation Table (49 CFR 172.101 and
amendments thereto) or designated by the Environmental Protection Agency (or any successor agency)
as hazardous substances (see, e.g., 40 CFR Part 302 and amendments thereto); such other
substances, materials and wastes which are or become regulated or become classified as hazardous
or toxic under any Laws, including without limitation the California Health & Safety Code,
Division 20, and Title 26 of the California Code of Regulations; and any material, waste or
substance which is (i) petroleum, (ii) asbestos, (iii) polychlorinated biphenyls, (iv) designated
as a “hazardous substance” pursuant to section 311 of the Clean Water Act of 1977, 33 U.S.C.
sections 1251 et seq. (33 U.S.C. Section 1321) or listed pursuant to section 307 of the Clean
Water Act of 1977 (33 U.S.C. Section 1317), as amended; (v) flammable explosives; (vi) radioactive
materials; or (vii) radon gas.

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     7. Taxes.

          7.1 Personal Property Taxes. Tenant shall cause Tenant’s trade fixtures,
equipment, furnishings, furniture, merchandise, inventory, machinery, appliances and other
personal property installed or located on the Premises (collectively the “personal property”)
to
be assessed and billed separately from the Premises. Tenant shall pay before delinquency any
and all taxes, assessments and public charges levied, assessed or imposed upon or against
Tenant’s personal property. If any of Tenant’s personal property shall be assessed with the
real
property comprising the Common Area or with the Premises, Tenant shall pay to Landlord, as
Additional Rent, the amounts attributable to Tenant’s personal property within ten (10) days
after receipt of a written statement from Landlord setting forth the amount of such taxes,
assessments and public charges attributable to Tenant’s personal property. Tenant shall comply
with the provisions of any Law which requires Tenant to file a report of Tenant’s personal
property located on the Premises.

          7.2 Other Taxes Payable Separately by Tenant. Tenant shall pay (or reimburse
Landlord, as Additional Rent, if Landlord is assessed), prior to delinquency or within ten
(10) days after receipt of Landlord’s statement thereof, any and all taxes, levies, assessments or
surcharges relating to the Premises and payable by Landlord or Tenant (other than Taxes
(defined in Paragraph 7.3(a) below) otherwise payable as an Operating Expense, and Landlord’s
net income, succession, transfer, gift, franchise, estate or inheritance taxes), whether or
not now customary or within the contemplation of the parties hereto, whether or not now in force or
which may hereafter become effective, including but not limited to taxes:

          (a) Upon, allocable to, or measured by the area of the Premises or the Rentals
payable hereunder, including without limitation any gross income, gross receipts, excise, or
other tax levied by the state, any political subdivision thereof, city or federal government
with
respect to the receipt of such Rentals;

          (b) Upon or with respect to the use, possession, occupancy, leasing, operation
and management of the Premises or any portion thereof;

          (c) Upon this transaction or any document to which Tenant is a party creating
or transferring an interest or an estate in the Premises; or

          (d) Imposed as a means of controlling or abating environmental pollution or
the use of energy or any natural resource (including without limitation gas, electricity or
water),
including, without limitation, any parking taxes, levies or charges or vehicular regulations
imposed by any governmental agency. Tenant shall also pay, prior to delinquency, all
privilege,
sales, excise, use, business, occupation, or other taxes, assessments, license fees or charges
levied, assessed or imposed upon Tenant’s business operations conducted at the Premises.

     In the event any such taxes are payable by Landlord and it shall not be lawful for Tenant to
reimburse Landlord for such taxes, then the Rentals payable hereunder shall be increased to

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net Landlord the same net Rental after imposition of any such tax upon Landlord as would have
been payable to Landlord prior to the imposition of any such tax.

     7.3 Common Taxes.

          (a) Definition of Taxes. The term “Taxes” as used in this Lease shall
collectively mean (to the extent any of the following are not paid by Tenant pursuant to
Paragraphs 7.1 and 7.2 above) all real estate taxes and general and special assessments
(including, but not limited to, assessments for public improvements or benefit); personal
property taxes; taxes based on vehicles utilizing parking areas on the Common Area; taxes
computed or based on rental income or on the square footage of the Premises (including without
limitation any municipal business tax but excluding federal, state and municipal net income
taxes); environmental surcharges; excise taxes; gross receipts taxes; sales and/or use taxes;
employee taxes; water and sewer taxes, levies, assessments and other charges in the nature of
taxes or assessments (including, but not limited to, assessments for public improvements or
benefit); and all other governmental, quasi-governmental or special district impositions of
any
kind and nature whatsoever; regardless of whether any of the foregoing are now customary or
within the contemplation of the parties hereto and regardless of whether resulting from
increased rate and/or valuation, or whether extraordinary or ordinary, general or special,
unforeseen or foreseen, or similar or dissimilar to any of the foregoing and which during the
Lease Term are laid, levied, assessed or imposed upon Landlord and/or become a lien upon or
chargeable against the Premises and/or Common Area under or by virtue of any present or
future laws, statutes, ordinances, regulations, or other requirements of any governmental,
quasi-governmental or special district authority whatsoever relating to the Premises and/or Common
Area. The term “environmental surcharges” shall include any and all expenses, taxes, charges
or penalties imposed by the Federal Department of Energy, Federal Environmental Protection
Agency, the Federal Clean Air Act, or any regulations promulgated thereunder, or imposed by
any other local, state or federal governmental agency or entity now or hereafter vested with
the
power to impose taxes, assessments or other types of surcharges as a means of controlling or
abating environmental pollution or the use of energy or any natural resource in regard to the
use,
operation or occupancy of the Premises and/or the Common Area. The term “Taxes” shall
include (to the extent the same are not paid by Tenant pursuant to Paragraphs 7.1 and 7.2
above), without limitation, all taxes, assessments, levies, fees, impositions or charges
levied,
imposed, assessed, measured, or based in any manner whatsoever upon or with respect to the
use, possession, occupancy, leasing, operation or management of the Premises and/or Common
Area or in lieu of or equivalent to any Taxes set forth in this Paragraph 7.3(a). The term
“Taxes” shall include any increase in taxes arising from a “change of ownership” of the
Premises (or Common Areas) or new construction. In the event any such Taxes are payable by
Landlord and it shall not be lawful for Tenant to reimburse Landlord for such Taxes, then the
Rentals payable hereunder shall be increased to net Landlord the same net Rental after
imposition of any such Tax upon Landlord as would have been payable to Landlord prior to the
imposition of any such Tax.

          (b)
Operating Expenses. All Taxes which are levied or assessed or which
become a lien upon the Premises and/or Common Area or which become due or accrue during

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the Lease Term shall be an Operating Expense, and Tenant shall pay as Additional Rent each
month during the Lease Term 1/12th of such Taxes, based on Landlord’s estimate thereof, pursuant
to Paragraph 12 below. Taxes during any partial tax fiscal year(s) within the Lease Term shall be
prorated according to the ratio which the number of days during the Lease Term or of actual
occupancy of the Premises by Tenant, whichever is greater, during such year bears to 365.

     8. Insurance;
Indemnity; Waiver.

          8.1 Insurance by Landlord.

          (a) Landlord shall, during the Lease Term, procure and keep in force the following
insurance, the cost of which shall be an Operating Expense, payable by Tenant pursuant to
Paragraph 12 below:

               (i) Property Insurance. “All risk” property insurance, including, without
limitation, coverage for boiler and machinery (if applicable); sprinkler damage; vandalism;
malicious mischief; full coverage plate glass insurance; and demolition, increased cost of
construction and contingent liability from change in building laws on the Premises and Common
Area, including any improvements or fixtures constructed or installed on the Premises and Common
Area by Landlord. Such insurance shall be in the full amount of the replacement cost of the
foregoing, with reasonable deductible amounts, which deductible amounts shall be an Operating
Expense, payable by Tenant pursuant to Paragraph 12. Such insurance shall also include rental
income insurance, insuring that one hundred percent (100%) of the Rentals (as the same may be
adjusted hereunder) will be paid to Landlord for a period of up to twelve (12) months if the
Premises are destroyed or damaged, or such longer period as may be required by any beneficiary of
a deed of trust or any mortgagee of any mortgage affecting the Premises. Such “all risk”
insurance may, at Landlord’s election, include coverage for earthquake and/or flood. Such
insurance shall not cover any leasehold improvements installed in the Premises by Tenant at its
expense, or Tenant’s equipment, trade fixtures inventory, fixtures or personal property located
on or in the Premises;

               (ii) Liability Insurance. Comprehensive general liability (lessor’s risk) or
commercial general liability insurance against any and all claims for personal injury, death or
property damage occurring in or about the Premises or Common Area. Such insurance shall have a
combined single limit of not less than One Million Dollars ($1,000,000) per occurrence and Two
Million Dollars ($2,000,000) aggregate; and

               (iii) Other. Such other insurance as Landlord deems reasonably necessary and
prudent. Landlord shall promptly notify Tenant in writing if Landlord deems any additional
insurance reasonably necessary or prudent (which may include, without limitation, any additional
insurance reasonably required by Landlord’s lender).

          8.2 Insurance by Tenant. Tenant shall, during the Lease Term, at Tenant’s
sole cost and expense, procure and keep in force the following insurance:

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          (a) Personal Property Insurance. “All risk” property insurance, including,
without limitation, coverage for earthquake and flood; boiler and machinery (if applicable);
sprinkler damage; vandalism; malicious mischief; and demolition, increased cost of
construction
and contingent liability from changes in building laws on all leasehold improvements installed
in the Premises by Tenant at its expense (if any) and on all equipment, trade fixtures,
inventory,
fixtures and personal property located on or in the Premises, including improvements or
fixtures
hereinafter constructed or installed on the Premises. Such insurance shall be in an amount
equal
to the full replacement cost of the aggregate of the foregoing and shall provide coverage
comparable to the coverage in the standard ISO all risk form, when such form is supplemented
with the coverages required above.

          (b) Liability Insurance. Comprehensive general liability insurance or
commercial general liability insurance for the mutual benefit of Landlord and Tenant, against
any and all claims for personal injury, death or property damage occurring in or about the
Premises and Common Area, or arising out of Tenant’s or Tenant’s agents’ use of the Common
Area, use or occupancy of the Premises or Tenant’s operations on or in the Premises. Such
insurance shall have a combined single limit of not less than Three Million Dollars
($3,000,000)
per occurrence and Five Million Dollars ($5,000,000) aggregate. Such insurance shall contain a
cross-liability (severability of interests) clause and an extended (“broad form”) liability
endorsement, including blanket contractual coverage. The minimum limits specified above are
the minimum amounts required by Landlord, and may be reasonably revised by Landlord from
time to time to meet changed circumstances, including without limitation to reflect changes
consistent with the standards required by other landlords in the county in which the Premises
are
located. Such liability insurance shall be primary and not contributing to any insurance
available to Landlord, and Landlord’s insurance (if any) shall be in excess thereto. Such
insurance shall specifically insure Tenant’s performance of the indemnity, defense and hold
harmless agreements contained in Paragraph 8.4, although Tenant’s obligations pursuant to
Paragraph 8.4 shall not be limited to the amount of any insurance required of or carried by
Tenant under this Paragraph 8.2(b). Tenant shall be responsible for insuring that the amount
of
insurance maintained by Tenant is sufficient for Tenant’s purposes.

          (c) Other. Such other insurance as required by law, including, without
limitation, workers’ compensation insurance.

          (d) Form of the Policies. The policies required to be maintained by Tenant
pursuant to Paragraphs 8.2(a), (b), and (c) above shall be with companies, on forms, with
deductible amounts (if any), and loss payable clauses satisfactory to Landlord, shall include
Landlord and the beneficiary or mortgagee of any deed of trust or mortgage encumbering the
Premises and/or the real property comprising the Common Area as additional insureds, and shall
provide that such parties may, although additional insureds recover for any loss suffered by
Tenant’s negligence. Certified copies of policies or certificates of insurance shall be
delivered
to Landlord prior to the Commencement Date: a new policy or certificate shall be delivered to
Landlord at least thirty (30) days prior to the expiration date of the old policy. Tenant
shall have
the right to provide insurance coverage which it is obligated to carry pursuant to the terms

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hereof in a blanket policy, provided such blanket policy expressly affords coverage to the
Premises and to Tenant as required by this Lease. Tenant shall obtain a written obligation on the
part of Tenant’s insurer(s) to notify Landlord and any beneficiary or mortgagee of a deed of trust
or mortgage encumbering the Premises and/or the real property comprising the Common Area in writing
of any delinquency in premium payments and at least thirty (30) days prior to any cancellation or
modification of any policy. Tenant’s policies shall provide coverage on an occurrence basis and not
on a claims made basis. In no event shall the limits of any policies maintained by Tenant be
considered as limiting the liability of Tenant under this Lease.

          8.3 Failure by Tenant to Obtain Insurance. If Tenant does not take out the
insurance required pursuant to Paragraph 8.2 or keep the same in full force and effect,
Landlord
may, but shall not be obligated to, take out the necessary insurance and pay the premium
therefor, and Tenant shall repay to Landlord, as Additional Rent, the amount so paid promptly
upon demand. In addition, Landlord may recover from Tenant and Tenant agrees to pay, as
Additional Rent, any and all reasonable expenses (including attorneys’ fees) and damages which
Landlord may sustain by reason of the failure of Tenant to obtain and maintain such insurance,
it
being expressly declared that the expenses and damages of Landlord shall not be limited to the
amount of the premiums thereon.

          8.4 Indemnification. Tenant shall indemnify, hold harmless, and defend
(using counsel selected by Tenant and reasonably approved by Landlord) Landlord (except for
Landlord’s gross negligence or willful misconduct) against all claims, losses, damages,
actions,
causes of action, penalties, demands, expenses or liabilities for injury or death to any
person or
for damage to or loss of use of any property arising out of any occurrence in, on or about the
Premises or Common Area, if caused or contributed to by Tenant or Tenant’s agents, or arising
out of any occurrence in, upon or at the Premises or on account of the use, condition,
occupational safety or occupancy of the Premises. Tenant’s obligations under the immediately
preceding sentence shall not be applicable to the extent claims, losses, damages, actions,
causes
of action, penalties, demands, expenses or liabilities for injury or death to any person or
for
damage to or loss of use of any property arise out of any breach by Landlord of any of its
obligations under Sections 10.1, 11.2 and 15, respectively, of this Lease.
Tenant’s
indemnification, defense and hold harmless obligations under this Lease shall include and
apply
to attorneys’ fees, investigation costs, and other costs actually incurred by Landlord.
Tenant
shall further indemnify, defend (using counsel selected by Tenant and reasonably approved by
Landlord) and hold harmless Landlord from and against any and all claims, losses, damages,
liabilities or expenses arising from any breach or default in the performance of any
obligation on
Tenant’s part to be performed under the terms of this Lease. Landlord agrees to notify Tenant
promptly of any claim for indemnity hereunder and Landlord shall reasonably cooperate, at no
cost or expense to Landlord, in the defense of any claim for which Tenant is to indemnify
Landlord. In any circumstance in which Tenant is to indemnify Landlord hereunder, if in the
good faith judgment of Landlord (i) the defense of Landlord is not proceeding or being
conducted in a satisfactory manner, or (ii) there may be a conflict of interest between any of
the
parties to the claim, Landlord may employ its own legal counsel and consultants to prosecute,
negotiate or defend any claim, action, or cause of action against Landlord. Notwithstanding
anything in this Agreement to the contrary, Tenant shall not, without the prior written
consent of

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Landlord (which consent shall not be unreasonably withheld or delayed), (x) settle or
compromise any claim against Landlord or consent to the entry of any judgment that does not include
the delivery by the claimant or plaintiff to Landlord of a written release of Landlord (in form,
scope and substance satisfactory to Landlord in its sole discretion) from all liability in respect
of such claim; or (y) settle or compromise any claim in any manner that may materially and
adversely affect Landlord as determined by Landlord in the good faith exercise of its discretion.
Tenant shall reimburse Landlord upon demand for the amount of all costs of settlements so entered
into for which Tenant is obligated to indemnify Landlord hereunder and the reasonable fees and
other costs and expenses of its attorneys and consultants pursuant to clauses (i) or (ii) above,
including, without limitation, those incurred in connection with monitoring and participating in
any action or proceeding. The provisions of this Paragraph 8.4 shall survive Lease Termination with
respect to any damage, injury, death, breach or default occurring prior to such termination. This
Lease is made on the express condition that Landlord shall not be liable for, or suffer loss by
reason of, injury to person or property, from whatever cause (other than Landlord’s gross
negligence or willful misconduct), in any way connected with the condition, use, occupational
safety or occupancy of the Premises specifically including, without limitation, any liability for
injury to the person or property of Tenant or Tenant’s agents. The preceding to the contrary
notwithstanding, under no circumstances shall Landlord be liable for any claim by Tenant of lost
profits, loss of income or lost business.

          8.5 Claims by Tenant. Landlord shall not be liable to Tenant, and Tenant waives all
claims against Landlord, for injury or death to any person, damage to any property, or loss of use
of any property in the Premises or Common Area by and from all causes, including without
limitation, any defect in the Premises or Common Area and/or any damage or injury resulting from
fire, steam, electricity, gas, water or rain, which may leak or flow from or into any part of the
Premises, or from breakage, leakage, obstruction or other defects of pipes, sprinklers, wires,
appliances, plumbing, air conditioning or lighting fixtures, whether the damage or injury results
from conditions arising upon the Premises or Common Area or from other sources. Landlord shall not
be liable for any damages arising from any act or neglect of any other user of the Common Area.
Tenant or Tenant’s agents shall immediately notify Landlord in writing of any known defect in the
Premises or Common Area. The provisions of this Paragraph 8.5 shall not apply to any damage or
injury caused by Landlord’s willful misconduct or gross negligence.

          8.6 Mutual Waiver of Subrogation. Landlord hereby releases Tenant, and Tenant hereby
releases Landlord, and their respective officers, agents, employees and servants, from any and all
claims or demands of damages, loss, expense or injury to the Premises or the Common Area, or to the
furnishings, fixtures, equipment, inventory or other property of either Landlord or Tenant in,
about or upon the Premises or the Common Area, which is caused by or results from perils, events or
happenings which are the subject of insurance carried by the respective parties pursuant to this
Paragraph 8 and in force at the time of any such loss, whether due to the negligence of the other
party or its agents and regardless of cause or origin; provided, however, that such waiver shall be
effective only to the extent permitted by the insurance covering such loss, to the extent such
insurance is not prejudiced thereby, and to the extent insured against.

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     9. Utilities. Tenant shall pay during the Lease Term and prior to delinquency all
charges for water, gas, light, heat, power, electricity, telephone or other communication service,
janitorial service, trash pick-up, sewer and all other services supplied to or consumed on the
Premises (collectively the “Services”) and all taxes, levies, fees or surcharges therefor. Tenant
shall arrange for Services to be supplied to the Premises and shall contract for all of the
Services in Tenant’s name prior to the Commencement Date. The Commencement Date shall not be
delayed by reason of any failure by Tenant to so contract for Services. In the event that any of
the Services cannot be separately billed or metered to the Premises, or if any of the Services are
not separately metered as of the Commencement Date, the cost of such Services shall be an Operating
Expense and Tenant shall pay such cost to Landlord, as Additional Rent, as provided in Paragraph 12
below, except that Tenant’s proportionate share of such Services shall be the percentage obtained
by dividing the gross leasable square footage contained in the Premises by the total gross leasable
square footage located in all buildings utilizing such Services. The lack or shortage of any
Services due to any cause whatsoever shall not affect any obligation of Tenant hereunder, and
Tenant shall faithfully keep and observe all the terms, conditions and covenants of this Lease and
pay all Rentals due hereunder, all without diminution, credit or deduction.

     10. Repairs and Maintenance.

          10.1 Landlord’s Responsibilities. Subject to the provisions of Paragraph 15 below,
Landlord shall maintain in reasonably good order and repair the structural roof and roof surface,
structural and exterior walls (including painting thereof) and foundations of the Premises, except
for any repairs required because of the wrongful act of Tenant or Tenant’s agents, which repairs
shall be made at the expense of Tenant and as Additional Rent. In addition, Landlord may elect at
any time, at its option, to maintain the heating and air conditioning systems of the Premises.
Tenant shall give prompt written notice to Landlord of any known maintenance work required to be
made by Landlord pursuant to this Paragraph 10.1. The costs of repairs and maintenance which are
the obligation of Landlord hereunder or which Landlord elects to perform hereunder shall be an
Operating Expense and Tenant shall pay such costs to Landlord as Additional Rent, as provided in
Paragraph 12 below.

     To the extent any labor dispute in which Tenant is involved or of which Tenant is the object
interferes with the performance of Landlord’s duties hereunder, Landlord shall be excused from the
performance of such duties and Tenant hereby waives any and all claims against Landlord for
damages or losses in regard to such duties.

          10.2 Tenant’s Responsibilities. Except as expressly provided in Paragraph 10.1 above,
Tenant shall, at its sole cost, maintain the entire Premises and every part thereof, including
without limitation, windows, skylights, window frames, plate glass, freight docks, doors and
related hardware, interior walls and partitions, and the electrical, plumbing, lighting, heating
and air conditioning systems (unless Landlord has elected to keep and maintain the heating and air
conditioning systems pursuant to Paragraph 10.1 above) in good order, condition and repair. If
Landlord has not elected to keep and maintain the heating and air conditioning

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systems, Tenant shall deliver to Landlord, every six (6) months during the Lease Term, a
certificate of maintenance or its equivalent, signed by a licensed HVAC repair and maintenance
contractor and stating that the heating and air conditioning systems servicing the Premises have
been inspected, serviced and are in good order, condition and repair. Tenant’s failure to deliver
said certificate or its equivalent shall be a Default by Tenant (subject to any grace period
applicable under Paragraph 14 below). If Tenant fails to make repairs or perform maintenance work
required of Tenant hereunder within five (5) days after notice from Landlord specifying the need
for such repairs or maintenance work, Landlord or Landlord’s agents may, in addition to all other
rights and remedies available hereunder or by law and without waiving any alternative remedies,
enter into the Premises and make such repairs and/or perform such maintenance work. If Landlord
makes such repairs and/or performs such maintenance work, Tenant shall reimburse Landlord upon
demand and as Additional Rent, for the cost of such repairs and/or maintenance work. Landlord shall
have no liability to Tenant for any damage, inconvenience or interference with the use of the
Premises by Tenant or Tenant’s agents as a result of Landlord performing any such repairs or
maintenance. Tenant shall reimburse Landlord, on demand and as Additional Rent, for the cost of
damage to the Premises and/or Common Area caused by Tenant or Tenant’s agents. Tenant expressly
waives the benefits of any statute now or hereafter in effect (including without limitation the
provisions of subsection 1 of Section 1932, Section 1941 and Section 1942 of the California Civil
Code and any similar law, statute or ordinance now or hereafter in effect) which would otherwise
afford Tenant the right to make repairs at Landlord’s expense (or to deduct the cost of such
repairs from Rentals due hereunder) or to terminate this Lease because of Landlord’s failure to
keep the Premises in good and sanitary order.

     11. Common Area.

          11.1 In General. Subject to the terms and conditions of this Lease and such rules and
regulations as Landlord may from time to time prescribe, Tenant and Tenant’s agents shall have the
nonexclusive right to use during the Lease Term the access roads, sidewalks, landscaped areas and
other common facilities on the Common Area. This right to use the Common Area shall terminate upon
Lease Termination. Neither Tenant nor Tenant’s agents shall at any time park or permit the parking
of their vehicles in any portion of the Common Area not designated by Landlord as a parking area.

     Landlord reserves the right from time to time to make changes in the shape, size, location,
amount and extent of the Common Area; provided, however, such changes shall not unreasonably
impair Tenant’s access to or use of the Premises. Landlord further reserves the right to
promulgate such reasonable rules and regulations relating to the use of all or any portion of the
Common Area and to amend such rules and regulations from time to time, with or without advance
notice, as Landlord may deem appropriate. Any amendments to the rules and regulations shall be
effective as to Tenant, and binding on Tenant, upon delivery of a copy of such rules and
regulations to Tenant. Tenant and Tenant’s agents shall observe such rules and regulations and any
failure by Tenant or Tenant’s agents to observe and comply with the rules and regulations shall be
a Default by Tenant. Landlord shall not be responsible for the nonperformance of the rules and
regulations by any tenants or occupants of the buildings or

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improvements which now exist or may hereafter be constructed upon the Common Area or upon the real
property owned by Landlord adjacent to the Common Area or by any other user authorized by
Landlord.

     Landlord furthermore reserves the right, after having given Tenant reasonable notice, to have
any vehicles owned by Tenant or Tenant’s agents which are parked in violation of the provisions of
this Paragraph 11.1 or in violation of Landlord’s rules and regulations relating to parking, to be
towed away at the expense of the owner of the vehicle so towed.

     Landlord shall have the right to close, at reasonable times, all or any portion of the Common
Area for any reasonable purpose, including without limitation, the prevention of a dedication
thereof, or the accrual of rights of any person or public therein.

          11.2 Maintenance by Landlord. Landlord shall operate, manage and maintain the Common
Area. The manner in which the Common Area shall be maintained and the expenditures for such
maintenance shall be at the reasonable discretion of Landlord. The cost of such maintenance,
operation and management, shall be an “Operating Expense”, and Tenant shall pay such costs to
Landlord, as Additional Rent, as provided in Paragraph 12 below.

     12. Operating Expenses. It is intended by Landlord and Tenant that this Lease be a
“triple net” lease.

          12.1 Definition. “Operating Expense” or “Operating Expenses” as used in this Lease
shall mean and include all items identified in other paragraphs of this Lease as an Operating
Expense and the total cost paid or incurred by Landlord for the operation, maintenance, repair,
and management of the Premises and Common Area, which costs shall include, without limitation: the
cost of Services and utilities supplied to the Premises and Common Area (to the extent the same
are not separately charged or metered to Tenant); water; sewage; fuel; electricity; lighting
systems; professional management fee (not to exceed four percent (4%) of the Premises’ gross
rental income); fire protection systems; storm drainage and sanitary sewer systems; HVAC including
air conditioning (to the extent the heating and air conditioning systems in the Premises are not
maintained by Tenant at Tenant’s sole cost and expense); repairing the roof structure and roof
surface; maintenance and repair of the structural parts of the Premises (including foundation,
floor slab and load bearing walls); property and liability insurance covering the Premises and any
other insurance carried by Landlord pursuant to Paragraph 8 above; cleaning, sweeping, striping,
resurfacing of parking and driveway areas; cleaning the Common Area following storms or other
severe weather; cleaning and repairing of sidewalks, curbs, stairways; costs related to irrigation
systems; the cost of complying with Laws, including, without limitation, maintenance, alterations
and repairs required in connection therewith; costs related to landscape maintenance; and the cost
of contesting the validity or applicability of any governmental enactments which may affect
Operating Expenses. Because the Common Area is used by more than one (1) building during the Lease
Term, the term “Operating Expenses” shall mean and include all of the Operating Expenses allocable
to the Premises and a proportionate share (based on the square footage of gross leasable area in
the Premises as a percentage of the total of square footage of gross leasable area of the
buildings

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utilizing the Common Area at the time in question) of all Operating Expenses which are related to
such buildings in general and are not allocated to any one building utilizing the Common Area. The
cost of cost of capital improvements made to the Building by Landlord that have the effect of
reducing Operating Expenses or avoiding increases in Operating Expenses or that are required under
any governmental law or regulation that was not in effect as of the Commencement Date of the Lease
shall be fully amortized over the useful life of the capital improvement (as reasonably determined
by Landlord in good faith) with interest on the unamortized balance at the prevailing market rate
Landlord would pay if it borrowed funds to construct such capital repair item or capital
improvement from an institutional lender, and shall be paid monthly by Tenant from the date of
substantial completion of construction, installation or repair of the capital improvement through
the earlier of the expiration of the Lease Term, as the same may be extended pursuant to the terms
of this Lease, or the expiration of the useful life of the capital improvement. The specific
examples of Operating Expenses stated in this Paragraph 12.1 are in no way intended to and shall
not limit the costs comprising Operating Expenses, nor shall such examples be deemed to obligate
Landlord to incur such costs or to provide such services or to take such actions except as Landlord
may be expressly required in other portions of this Lease, or except as Landlord, in its sole
discretion, may elect. The term “Operating Expenses” shall not include any costs paid or incurred
by Landlord to correct any code violation or any violation of Law that exists with respect to the
Premises, the Building or Common Area as of the Commencement Date of this Lease.

          12.2 Payment of Operating Expenses by Tenant. Tenant shall pay the Operating
Expenses to Landlord as Additional Rent and without deduction or offset. Payment of Operating
Expenses by Tenant shall be made by whichever of the following methods is from time to time
designated by Landlord, and Landlord may change the method of payment at any time. Operating
Expenses actually incurred or paid by Landlord but not theretofore billed to Tenant, as invoiced by
Landlord, shall be payable by Tenant within twenty (20) days after receipt of Landlord’s invoice,
but not more often than once each calendar month. Alternatively, Tenant’s payment of Operating
Expenses shall be based upon Landlord’s estimate of Operating Expenses and shall be payable in
equal monthly installments in advance on the first day of each calendar month commencing with the
month following receipt of Landlord’s estimate (and subject to Landlord’s right to change the
method of payment). Within one hundred twenty (120) days after the end of each calendar year (or at
Lease Termination), or as soon thereafter as practicable under the circumstances, Landlord shall
furnish Tenant a reconciliation statement showing the actual Operating Expenses for the period to
which Landlord’s estimate pertains and shall concurrently either bill Tenant for the balance due
(payable upon demand by Landlord) or credit Tenant’s account for the excess previously paid.

          12.3 Audit Right. In the event of any dispute as to any Operating Expenses payable
by Tenant as shown in a reconciliation statement as provided in the last sentence of Paragraph 12.2
above, Tenant shall have the right, within ninety (90) days after the date of Tenant’s receipt of
such reconciliation statement and after reasonable notice and at reasonable times, to inspect
Landlord’s records pertaining to Operating Expenses for the applicable calendar year in question at
Landlord’s office. Tenant’s failure to exercise its right to inspect records pertaining to
Operating Costs for any calendar year within ninety (90) days after the date

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of Tenant’s receipt of the reconciliation statement for such calendar year shall be deemed Tenant’s
waiver of its right to inspect Landlord’s records for such calendar year and acceptance of the
Operating Expenses paid by Tenant for such calendar year (or applicable portion thereof). If, after
such inspection, Tenant still disputes the Operating Costs paid by Tenant for such calendar year
(or applicable portion thereof), Tenant may have a certification as to Tenant’s Operating Expenses
for such calendar year made by an independent certified public accountant. The accountant or
accounting firm retained by Tenant shall be subject to the prior written approval of Landlord,
which approval shall not be unreasonably withheld. It shall not be unreasonable for Landlord to
withhold its consent if the certified public accountant or accounting firm has any conflict of
interest with respect to Landlord, as determined by Landlord, or is then involved in a dispute
which also involves Landlord. In no event, however, shall Tenant retain an independent certified
public accountant or accounting firm whose compensation is based on a percentage of any savings to
Tenant of Operating Expenses resulting from such certification. Promptly upon receipt of the
certification from its accountant, Tenant shall deliver a copy of the certification to Landlord.
When a final determination has been made as to the amount in dispute, Landlord shall pay the amount
determined to be owed to Tenant, or Tenant shall pay the amount determined to be owed to Landlord,
as applicable, within thirty (30) days after the date of the final determination. As a condition
precedent to its exercise of its rights of dispute as set forth herein, Tenant shall timely pay to
Landlord all amounts set forth in the reconciliation statement which Tenant wishes to dispute.

     13. Alterations.

          13.1 In General. Tenant shall not make, or permit to be made, any alterations,
changes, enlargements, improvements or additions (collectively “Alterations”) in, on, about or to
the Premises, or any part thereof, including Alterations required pursuant to Paragraph 6.2,
without the prior written consent of Landlord and without acquiring and complying with the
conditions of all permits required for such Alterations by any governmental authority having
jurisdiction thereof. The term “Alterations” as used in this Paragraph 13 shall also include all
heating, lighting, electrical (including all wiring, conduit, outlets, drops, buss ducts, main and
subpanels), air conditioning, and partitioning in the Premises made by Tenant, regardless of how
affixed to the Premises. As a condition to the giving of its consent, Landlord may impose such
requirements as Landlord may deem necessary in its sole discretion, including without limitation,
the manner in which the work is done; a right of approval of the contractor by whom the work is to
be performed (which approval shall not be unreasonably withheld); the requirement that Tenant post
a completion bond in an amount and form satisfactory to Landlord; and the requirement that Tenant
reimburse Landlord, as Additional Rent, for Landlord’s actual costs incurred in reviewing any
proposed Alteration, whether or not Landlord’s consent is granted. In the event Landlord consents
to the making of any Alterations by Tenant, the same shall be made by Tenant at Tenant’s sole cost
and expense, in accordance with the plans and specifications approved by Landlord. Tenant shall
give written notice to Landlord five (5) days prior to employing any laborer or contractor to
perform services related to, or receiving materials for use upon the Premises, and prior to the
commencement of any work of improvement on the Premises. Any Alterations to the Premises made by
Tenant shall be made in accordance with applicable Laws and in a good and workmanlike manner. In
making any

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such Alterations, Tenant shall, at Tenant’s sole cost and expense, file for and secure and comply
with any and all permits or approvals required by any governmental departments or authorities
having jurisdiction thereof and any utility company having an interest therein. In no event shall
Tenant make any structural changes to the Premises or make any changes to the Premises which would
weaken or impair the structural integrity of the Premises.

          13.2 Removal Upon Lease Termination. At the time Landlord consents in writing to any
Alterations requested to be made to the Premises by Tenant, Landlord shall notify Tenant in writing
as to whether Landlord will require Tenant, at Tenant’s expense, to remove any such Alterations and
restore the Premises to their prior condition at Lease Termination. Any Alterations so requested by
Landlord to be removed shall be removed by Tenant, at its sole cost, and Tenant shall, at its sole
cost, restore the Premises at Lease Termination to their condition existing prior to the
installation or construction of such Alterations requested by Landlord to be removed (ordinary wear
and tear excepted). In the event Tenant fails to earlier obtain Landlord’s written decision as to
whether Tenant will be required to remove any Alteration, then no less than ninety (90) nor more
than one hundred twenty (120) days prior to the expiration of the Lease Term, Landlord shall inform
Tenant whether or not Landlord desires to have any Alterations made to the Premises by Tenant
removed at Lease Termination. Following receipt of such notice, Tenant shall, at its sole cost and
expense, remove at Lease Termination such Alterations designated by Landlord for removal and repair
all damage to the Premises and Common Area arising from such removal. In the event Tenant fails to
remove any Alterations designated by Landlord for removal, Landlord may remove such Alterations
made to the Premises by Tenant and repair all damage to the Premises and Common Area arising from
such removal, and may recover from Tenant all reasonable costs and expenses incurred thereby.
Tenant’s obligation to pay such costs and expenses to Landlord shall survive Lease Termination.
Unless Landlord elects to have Tenant remove any such Alterations, all such Alterations, except for
moveable furniture and trade fixtures of Tenant not affixed to the Premises, shall become the
property of Landlord upon Lease Termination (without any payment therefor) and remain upon and be
surrendered with the Premises at Lease Termination.

          13.3 Landlord’s Improvements. All fixtures, improvements or equipment which are
installed, constructed on or attached to the Premises or Common Area by Landlord shall be a part of
the realty and belong to Landlord.

     14. Default and Remedies.

          14.1 Events of Default. The term “Default by Tenant” as used in this Lease
shall mean the occurrence of any of the following events:

          (a) Tenant’s failure to pay when due any Rentals, where such failure is not cured by Tenant
within five (5) days following the date written notice of such failure is given by Landlord to
Tenant;

          (b) Tenant’s vacation or abandonment of the Premises which is not cured within thirty days
after written notice is given to Tenant (or if such breach or default cannot be

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reasonably cured within such thirty (30) days, then if Tenant does not commence to cure such
breach or default within the thirty (30) day period or does not diligently and in good faith
prosecute the cure to completion);

          (c) Commencement and continuation for at least sixty (60) days of any case, action or
proceeding by, against or concerning Tenant under any federal or state bankruptcy, insolvency or
other debtor’s relief law, including without limitation, (i) a case under Title 11 of the United
States Code concerning Tenant, whether under Chapter 7, 11, or 13 of such Title or under any other
Chapter, or (ii) a case, action or proceeding seeking Tenant’s financial reorganization or an
arrangement with any of Tenant’s creditors;

          (d) Voluntary or involuntary appointment of a receiver, trustee, keeper, or other person who
takes possession for more than sixty (60) days of substantially all of Tenant’s assets or of any
asset used in Tenant’s business on the Premises, regardless of whether such appointment is as a
result of insolvency or any other cause;

          (e) Execution of an assignment for the benefit of creditors of substantially all assets of
Tenant available by law for the satisfaction of judgment creditors which continues and is not cured
within thirty days after written notice of the same is given to Tenant (or if such breach cannot be
reasonably cured within such thirty (30) days, then if Tenant does not commence to cure such breach
within the thirty (30) day period or does not diligently and in good faith prosecute the cure to
completion);

          (f) Commencement of proceedings for winding up or dissolving (whether voluntary or
involuntary) the entity of Tenant, if Tenant is a corporation or a partnership, which continues and
is not cured within thirty days after written notice of the same is given to Tenant (or if such
breach cannot be reasonably cured within such thirty (30) days, then if Tenant does not commence to
cure such breach within the thirty (30) day period or does not diligently and in good faith
prosecute the cure to completion);

          (g) Levy of a writ of attachment or execution on Tenant’s interest under this Lease, if such
writ continues for a period of thirty (30) days;

          (h) Transfer or attempted Transfer of this Lease or the Premises by Tenant contrary to the
provisions of Paragraph 24 below which is not cured within thirty days after written notice of the
same is given to Tenant (or if such breach cannot be reasonably cured within such thirty (30)
days, then if Tenant does not commence to cure such breach within the thirty (30) day period or
does not diligently and in good faith prosecute the cure to completion); or

          (i) Breach by Tenant of any term, covenant, condition, warranty, or other provision contained
in this Lease or of any other obligation owing or due to Landlord which is not cured within thirty
days after written notice of such breach is given to Tenant (or if such breach cannot be
reasonably cured within such thirty (30) days, then if Tenant does not

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commence to cure such breach within the thirty (30) day period or does not diligently and in good
faith prosecute the cure to completion).

          14.2 Remedies. Upon any Default by Tenant, Landlord shall have the following
remedies, in addition to all other rights and remedies provided by law, to which Landlord may
resort cumulatively, or in the alternative:

               14.2.1 Termination. Upon any Default by Tenant, Landlord shall have the right (but
not the obligation) to terminate this Lease and Tenant’s right to possession of the Premises. The
parties agree that any notice given by Landlord to Tenant pursuant to this Paragraph 14.1 shall be
sufficient notice for purposes of California Code of Civil Procedure Section 1161 and Landlord
shall not be required to give any additional notice in order to be entitled to commence an
unlawful detainer proceeding. Upon termination of this Lease and Tenant’s right to possession of
the Premises, Landlord shall have the right to recover from Tenant:

                    a. The worth at the time of award of the unpaid Rentals which had been earned at the time of
termination;

                    b. The worth at the time of award of the amount by which the
Rentals which would have been earned after termination until the time of award exceeds the amount
of such rental loss that Tenant proves could have been reasonably avoided;

                    c. The worth at the time of award (computed by discounting at
the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one
percent) of the amount by which the Rentals for the balance of the Lease Term after the time of
award exceed the amount of such rental loss that Tenant proves could be reasonably avoided;

                    d. Any other amounts necessary to compensate Landlord for
all detriment proximately caused by the Default by Tenant or which in the ordinary course of events
would likely result, including without limitation the following:

                         (i) Expenses in retaking possession of the Premises;

                         (ii) Expenses for cleaning, repairing or restoring the Premises;

                         (iii) Any unamortized real estate brokerage commission paid in connection with this Lease;

                         (iv) Expenses for removing, transporting, and storing
any of Tenant’s property left at the Premises (although Landlord shall have no obligation to
remove, transport, or store any such property);

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                         (v) Expenses of reletting the Premises, including without limitation, brokerage
commissions and attorneys’ fees;

                         (vi) Attorneys’ fees and court costs; and

                         (vii) Costs of carrying the Premises such as repairs, maintenance, taxes and insurance
premiums, utilities and security precautions (if any).

                    (e) The “worth at the time of award” of the amounts referred to
in subparagraphs (a) and (b) of this Paragraph 14.2.1 is computed by allowing interest at an annual
rate equal to the greater of: ten percent (10%); or five percent (5%) plus the rate established by
the Federal Reserve Bank of San Francisco, as of the twenty-fifth (25th) day of the month
immediately preceding the Default by Tenant, on advances to member banks under Sections 13 and
13(a) of the Federal Reserve Act, as now in effect or hereafter from time to time amended, not to
exceed the maximum rate allowable by law.

               14.2.2 Continuance of Lease. Upon any Default by Tenant and unless and until Landlord
elects to terminate this Lease pursuant to Paragraph 14.2.1 above, this Lease shall continue in
effect after the Default by Tenant and Landlord may enforce all its rights and remedies under this
Lease, including without limitation, the right to recover payment of Rentals as they become due.
Neither efforts by Landlord to mitigate damages caused by a Default by Tenant nor the acceptance
of any Rentals shall constitute a waiver by Landlord of any of Landlord’s rights or remedies,
including the rights and remedies specified in Paragraph 14.2.1 above. The Landlord shall have the
remedy described in California Civil Code Section 1951.4 (landlord may continue lease in effect
after tenant’s breach and abandonment and recover rent as it becomes due, if landlord has the
right to sublet or assign, subject only to reasonable limitations).

     15. Damage or Destruction.

          15.1 Definition of Terms. For the purposes of this Lease, the term: (a) “Insured
Casualty means damage to or destruction of the Premises from a cause actually insured against, for
which the insurance proceeds paid or made available to Landlord are sufficient to rebuild or
restore the Premises under then-existing building codes to the condition existing immediately
prior to the damage or destruction; and (b) “Uninsured Casualty” means damage to or destruction of
the Premises from a cause not actually insured against, or from a cause actually insured against
but for which the insurance proceeds paid or made available to Landlord are for any reason
insufficient to rebuild or restore the Premises under then-existing building codes to the
condition existing immediately prior to the damage or destruction, or from a cause actually
insured against but for which the insurance proceeds are not paid or made available to Landlord
within sixty (60) days of the event of damage or destruction.

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          15.2 Insured Casualty.

               15.2.1 Rebuilding Required. In the event of an Insured Casualty where the extent of
damage or destruction is less than twenty percent (20%) of the then full replacement cost of the
Premises, Landlord shall rebuild or restore the Premises to the condition existing immediately
prior to the damage or destruction, provided the damage or destruction was not a result of a
negligent or willful act of Tenant, and that there exist no governmental codes or regulations that
would interfere with Landlord’s ability to so rebuild or restore.

               15.2.2 Landlord’s Election. In the event of an Insured Casualty where the extent of
damage or destruction is equal to or greater than twenty percent (20%) of the then full replacement
cost of the Premises, Landlord may, at its option and at its sole discretion, rebuild or restore
the Premises to the condition existing immediately prior to the damage or destruction, or terminate
this Lease. Landlord shall notify Tenant in writing within sixty (60) days after the event of
damage or destruction of Landlord’s election to either rebuild or restore the Premises or terminate
this Lease.

               15.2.3 Continuance of Lease. If Landlord is required to rebuild or restore the
Premises pursuant to Paragraph 15.2.1 or if Landlord elects to rebuild or restore the Premises
pursuant to Paragraph 15.2.2, this Lease shall remain in effect and Tenant shall have no claim
against Landlord for compensation for inconvenience or loss of business during any period of repair
or restoration.

          15.3 Uninsured Casualty.

               15.3.1 Landlord’s Election. In the event of an Uninsured Casualty, Landlord may, at
its option and at its sole discretion (i) rebuild or restore the Premises as soon as reasonably
possible at Landlord’s expense (unless the damage or destruction was caused by a negligent or
willful act of Tenant, in which event Tenant shall pay all costs of rebuilding or restoring), in
which event this Lease shall continue in full force and effect or (ii) terminate this Lease, in
which event Landlord shall give written notice to Tenant within sixty (60) days after the event of
damage or destruction of Landlord’s election to terminate this Lease as of the date of the event of
damage or destruction, and if the damage or destruction was caused by a negligent or willful act of
Tenant, Tenant shall be liable therefor to Landlord.

               15.3.2 Tenant’s Ability to Continue Lease. If Landlord elects to terminate this Lease
and the extent of damage or destruction is less than twenty percent (20%) of the then full
replacement cost of the Premises or the proceeds paid or made available to Landlord are for any
reason insufficient to rebuild or restore the Premises under then-existing building codes to the
condition existing immediately prior to the damage or destruction, and if there exist no
governmental codes or regulations that would interfere with Landlord’s ability to so repair or
restore, then Tenant may nevertheless cause the Lease to continue in effect by (i) notifying
Landlord in writing within ten (10) days after Landlord’s notice of termination of Tenant’s
agreement to pay all costs of rebuilding or restoring not covered by insurance, and (ii) providing

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Landlord with reasonable security for or assurance of such payment. Tenant shall pay to
Landlord in cash no later than thirty (30) days prior to the date of commencement of construction
the reasonable estimated cost of rebuilding or restoring. In the event Tenant fails to pay such
cost to Landlord by the date specified, Landlord may immediately terminate the Lease and recover
from Tenant all costs incurred by Landlord in preparation for construction. If the actual cost of
rebuilding or restoring exceeds the estimated cost of such work, Tenant shall pay the difference to
Landlord in cash upon notification by Landlord of the final cost. If the cost of rebuilding or
restoring is less than the estimated cost of such work, Tenant shall be entitled to a refund of the
difference upon completion of the rebuilding or restoring and determination of final cost.

          15.4 Tenant’s Election. Notwithstanding anything to the contrary contained in this
Paragraph 15, Tenant may elect to terminate this Lease in the event the Premises are damaged or
destroyed and, in the reasonable opinion of Landlord’s architect or construction consultants, the
restoration of the Premises cannot be substantially completed within one two hundred ten (210) days
after the event of damage or destruction. Tenant’s election shall be made by written notice to
Landlord within ten (10) days after Tenant receives from Landlord the estimate of the time needed
to complete repair or restoration of the Premises, If Tenant does not deliver said notice within
said ten (10) day period, Tenant may not later terminate this Lease even if substantial completion
of the rebuilding or restoration occurs subsequent to said two hundred ten (210) day period,
provided that Landlord is proceeding with diligence to rebuild or restore the Premises. If Tenant
delivers said notice within said ten (10) day period, this Lease shall terminate as of the date of
the event of damage or destruction.

          15.5 Damage or Destruction Near End of Lease Term. Notwithstanding anything to the
contrary contained in this Paragraph 15, in the event the Premises are damaged or destroyed in
whole or in part (regardless of the extent of damage) from any cause during the last twelve (12)
months of the Lease Term, Landlord may, at Landlord’s option, terminate this Lease as of the date
of the event of damage or destruction by giving written notice to Tenant of Landlord’s election to
do so within thirty (30) days after the event of such damage or destruction. For purposes of this
Paragraph 15.5, if Tenant has been granted an option to extend or renew the Lease Term pursuant to
another provision of this Lease, then the damage or destruction shall be deemed to have occurred
during the last twelve (12) months of the Lease Term if Tenant fails to exercise its option to
extend or renew within twenty (20) days after the event of damage or destruction.

          15.6 Termination of Lease. If the Lease is terminated pursuant to this Paragraph
15, the unused balance of the Security Deposit shall be refunded to Tenant. The current Rent and
Rentals shall be proportionately reduced during the period following the event of damage or
destruction until the date on which Tenant surrenders the Premises, based upon the extent to which
the damage or destruction interferes with Tenant’s business conducted in the Premises, as
reasonably determined by Landlord. The proceeds of insurance carried by Tenant pursuant to
Paragraph 8.2 shall be paid to Landlord and Tenant, as their interests appear.

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          15.7 Abatement of Rentals. If the Premises are to be rebuilt or restored
pursuant to this Paragraph 15, the then current Rent and Rentals shall be proportionately reduced
during the period of repair or restoration, based upon the extent to which the making of repairs
interferes with Tenant’s business conducted in the Premises, as reasonably determined by Landlord.

          15.8 Liability for Personal Property. In no event shall Landlord have any liability
for, nor shall it be required to repair or restore, any injury or damage to any Alterations to the
Premises made by Tenant, trade fixtures, equipment, merchandise, furniture, or any other property
installed by Tenant or at the expense of Tenant. If Landlord or Tenant do not elect to terminate
this Lease pursuant to this Paragraph 15, Tenant shall be obligated to promptly rebuild or restore
any Alterations made to the Premises by Tenant (except for any Alterations which Landlord has
previously notified Tenant in writing to remove at Lease Termination) to the same to the condition
existing immediately prior to the damage or destruction in accordance with the provisions of
Paragraph 13.1.

          15.9 Waiver of Civil Code Remedies. Landlord and Tenant acknowledge that the rights
and obligations of the parties upon damage or destruction of the Premises are as set forth herein;
therefore Tenant hereby expressly waives any rights to terminate this Lease upon damage or
destruction of the Premises, except as specifically provided by this Lease, including without
limitation any rights pursuant to the provisions of subdivision 2 of Section 1932 and subdivision 4
of Section 1933 of the California Civil Code, as amended from time to time, and the provisions of
any similar law hereinafter enacted, which provisions relate to the termination of the hiring of a
thing upon its substantial damage or destruction.

     16. Condemnation.

          16.1 Definition of Terms. For the purposes of this Lease, the term: (a) “Taking”
means a taking of the Premises or Common Area or damage related to the exercise of the power of
eminent domain and includes, without limitation, a voluntary conveyance, in lieu of court
proceedings, to any agency, authority, public utility, person or corporate entity empowered to
condemn property; (b) “Total Taking” means the Taking of the entire Premises or so much of the
Premises or Common Area as to prevent or substantially impair the use thereof by Tenant for the
uses herein specified; provided, however, that in no event shall the Taking of less than twenty
percent (20%) of the Premises be considered a Total Taking; (c) “Partial Taking” means the Taking
of only a portion of the Premises or Common Area which does not constitute a Total Taking; (d)
“Date of Taking” means the date upon which the title to the Premises or Common Area or a portion
thereof, passes to and vests in the condemnor or the effective date of any order for possession if
issued prior to the date title vests in the condemnor; (e) “Award” means the amount of any award
made, consideration paid, or damages ordered as a result of a Taking.

          16.2 Rights. The parties agree that in the event of a Taking all rights between them
or in and to an Award shall be as set forth herein.

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          16.3 Total Taking. In the event of a Total Taking during the Lease Term: (a) the
rights of Tenant under this Lease and the leasehold estate of Tenant in and to the Premises shall
cease and terminate as of the Date of Taking; (b) Landlord shall refund to Tenant any prepaid Rent
and the unused balance of the Security Deposit; (c) Tenant shall pay Landlord any Rentals due
Landlord under the Lease, prorated as of the Date of Taking; (d) to the extent the Award is not
payable to the beneficiary or mortgagee of a deed of trust or mortgage affecting the Premises,
Tenant shall receive from the Award those portions of the Award attributable to trade fixtures of
Tenant, moving expenses and Tenant’s loss of goodwill, if any; and (e) the remainder of the Award
shall be paid to and be the property of Landlord.

          16.4 Partial Taking. In the event of a Partial Taking during the Lease Term: (a) the
rights of Tenant under the Lease and the leasehold estate of Tenant in and to the portion of the
Premises taken shall cease and terminate as of the Date of Taking; (b) from and after the Date of
Taking the Rent shall be an amount equal to the product obtained by multiplying the then current
Rent by the quotient obtained by dividing the fair market value of the Premises immediately after
the Taking by the fair market value of the Premises immediately prior to the Taking; (c) to the
extent the Award is not payable to the beneficiary or mortgagee of a deed of trust or mortgage
affecting the Premises, Tenant shall receive from the Award the portions of the Award attributable
to trade fixtures of Tenant; and (d) the remainder of the Award shall be paid to and be the
property of Landlord. Each party waives the provisions of California Code of Civil Procedure
Section 1265.130 allowing either party to petition the Superior Court to terminate this Lease in
the event of a Partial Taking.

     17. Liens.

          17.1 Premises to Be Free of Liens. Tenant shall pay for all labor and services
performed for, and all materials used by or furnished to Tenant, Tenant’s agents, or any contractor
employed by Tenant with respect to the Premises. Tenant shall indemnify, defend and hold Landlord
harmless from and keep the Premises and Common Area free from any liens, claims, demands,
encumbrances, or judgments, including all costs, liabilities and attorneys’ fees with respect
thereto, created or suffered by reason of any labor or services performed for, or materials used by
or furnished to Tenant or Tenant’s agents or any contractor employed by Tenant with respect to the
Premises. Landlord shall have the right, at all times, to post and keep posted on the Premises any
notices permitted or required by law, or which Landlord shall deem proper, for the protection of
Landlord and the Premises and Common Area, and any other party having an interest therein, from
mechanics’ and materialmen’s liens, including without limitation a notice of nonresponsibility. In
the event Tenant is required to post an improvement bond with a public agency in connection with
any work performed by Tenant on or to the Premises, Tenant shall include Landlord as an additional
obligee.

          17.2
Notice of Lien, Bond. Should any claims of lien be filed against, or any action
be commenced affecting, the Premises, Tenant’s interest in the Premises or the Common Area, Tenant
shall give Landlord notice of such lien or action within five (5) business days after Tenant
receives notice of the filing of the lien or the commencement of the action. In the event that
Tenant shall not, within twenty (20) days following the imposition of any such lien, cause

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such lien to be released of record by payment or posting of a proper bond, Landlord shall have, in
addition to all other remedies provided herein and by law, the right, but not the obligation, to
cause the same to be released by such means as Landlord shall deem proper, including payment of
the claim giving rise to such lien or posting of a proper bond. All such sums paid by Landlord and
all expenses incurred by Landlord in connection therewith, including attorneys’ fees and costs,
shall be payable to Landlord by Tenant as Additional Rent on demand.

     18. Landlord’s Right of Access to Premises. Landlord reserves and shall have the
right and Tenant and Tenant’s agents shall permit Landlord and Landlord’s agents to enter the
Premises at any reasonable time for the purpose of (i) inspecting the Premises, (ii) performing
Landlord’s maintenance and repair responsibilities set forth herein, (iii) posting notices of non-
responsibility, (iv) placing upon the Premises at any time “For Sale” signs, (v) placing on the
Premises ordinary “For Lease” signs at any time within six (6) months days prior to Lease
Termination, or at any time a Default by Tenant exists and remains uncured, or at such other times
as agreed to by Landlord and Tenant, (vi) protecting the Premises in the event of an emergency, and
(vii) exhibiting the Premises to prospective purchasers, lenders or tenants. Landlord shall take
reasonable steps to minimize any disruption to Tenant’s business or interference with Tenant’s use
and enjoyment of the Premises in connection with Landlord’s entry into the Premises. Subject to the
foregoing sentence, Tenant hereby waives any claims for damages for any injury or inconvenience to
or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises,
and any other loss occasioned by Landlord’s or Landlord’s agents’ entry into the Premises as
permitted by this Paragraph 18 or any other provision of this Lease. Landlord consents to a
representative of Tenant, at Tenant’s cost, accompanying Landlord or its representative during any
entry onto the Premises, except in the case of any emergency if such an escort is not available. In
the event of an emergency, Landlord shall have the right to use any and all means which Landlord
may deem proper to gain access to the Premises. Any entry to the Premises by Landlord or Landlord’s
agents in accordance with this Paragraph 18 or any other provision of this Lease shall not under
any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer of
the Premises, or an eviction of Tenant from the Premises or any portion thereof nor give Tenant the
right to abate the Rentals payable under this Lease.

     19. Landlord’s Right to Perform Tenant’s Covenants. Except as otherwise expressly
provided herein, if Tenant shall at any time fail to make any payment or perform any other act
required to be made or performed by Tenant under this Lease, Landlord may upon ten (10) days
written notice to Tenant, but shall not be obligated to and without waiving or releasing Tenant
from any obligation under this Lease, make such payment or perform such other act to the extent
that Landlord may deem desirable, and in connection therewith, pay expenses and employ counsel.
All sums so paid by Landlord and all penalties, interest and costs in connection therewith shall be
due and payable by Tenant as Additional Rent upon demand.

     20. Lender Requirements.

          20.1 Subordination. This Lease, at Landlord’s option, shall be subject and subordinate
to the lien of any mortgages or deeds of trust (including all advances thereunder,

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renewals, replacements, modifications, supplements, consolidations, and extensions thereof) in any
amount(s) whatsoever now or hereafter placed on or against or affecting the Premises and/or the
real property comprising the Common Area or Landlord’s interest or estate therein, without the
necessity of the execution and delivery of any further instruments on the part of Tenant to
effectuate such subordination. If any mortgagee or beneficiary shall elect to have this Lease prior
to the lien of its mortgage or deed of trust, and shall give written notice thereof to Tenant, this
Lease shall be deemed prior to such mortgage or deed of trust, whether this Lease is dated prior or
subsequent to the date of such mortgage or deed of trust or the date of the recording thereof.
Promptly following the execution of this Lease, Landlord agrees to request in writing of the
mortgagee or beneficiary under the existing deed of trust encumbering the Premises (the “Existing
Lender”) that such Existing Lender execute and deliver to Landlord (for delivery to Tenant) a
subordination, non-disturbance and attornment agreement, pursuant to which such Existing Lender
agrees in writing that this Lease shall not be terminated in the event of any foreclosure or deed
in lieu of foreclosure if Tenant is not in default under this Lease. Landlord shall not be in
breach or default under this Lease if such Existing Lender will not execute and deliver such
subordination, non-disturbance and attornment agreement, and the parties hereto acknowledge and
agree that the effectiveness of this Lease is not conditioned upon receipt of such subordination,
non-disturbance and attornment agreement from the Existing Lender.

          20.2 Subordination Agreements. Tenant shall execute and deliver without charge
therefor, such further instruments evidencing subordination of this Lease to the lien of any
mortgages or deeds of trust affecting the Premises and/or real property comprising the Common Area
as may be required by Landlord within ten (10) days following Landlord’s request therefor; provided
that such mortgagee or beneficiary under such mortgage or deed of trust agrees in writing that this
Lease shall not be terminated in the event of any foreclosure or deed in lieu of foreclosure if
Tenant is not in default under this Lease, and provided further than any subordination,
nondisturbance agreement required by a mortgagee or beneficiary under a deed of trust shall be in
such mortgagee’s or beneficiary’s standard form and reasonably approved by Tenant.

          20.3 Approval by Lenders. Tenant recognizes that the provisions of this Lease may be
subject to the approval of any financial institution that may make a loan secured by a new or
subsequent deed of trust or mortgage affecting the Premises and/or real property comprising the
Common Area. If the financial institution should reasonably require, as a condition to such
financing, any modifications of this Lease in order to protect its security interest in the
Premises, including without limitation, modification of the provisions relating to damage to and/or
condemnation of the Premises, Tenant agrees to execute the appropriate amendments; provided,
however, that no modification shall substantially change the size, location or dimension of the
Premises, increase the Rentals payable by Tenant hereunder or increase the obligations of Tenant
hereunder. If Tenant unreasonably refuses to execute any such amendment, Landlord may, in
Landlord’s discretion, terminate this Lease.

          20.4 Attornment. In the event of foreclosure or the exercise of the power of sale
under any mortgage or deed of trust made by Landlord and covering the Premises and/or real property
comprising the Common Area, Tenant shall attorn to the foreclosing lender and to

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the purchaser upon any such foreclosure or sale and recognize such lender or such purchaser as
the Landlord under the Lease.

          20.5 Estoppel Certificates.

          (a) Delivery by Tenant. Tenant shall, within ten (10) days following request by
Landlord therefor and without charge, execute and deliver to Landlord any and all documents,
estoppel certificates, and current financial statements of Tenant reasonably requested by
Landlord in connection with the sale or financing of the Premises and/or real property comprising
the Common Area, or reasonably requested by any lender making a loan affecting the Premises and/or
real property comprising the Common Area. Landlord may require that Tenant deliver to Landlord
and/or such lender an estoppel certificate in the form of Exhibit F attached hereto and
incorporated herein by this reference. Any such estoppel certificate may be conclusively relied
upon by any prospective purchaser or encumbrancer of the Premises, and/or real property comprising
the Common Area provided such party (or its affiliate) is named therein.

          (b) Nondelivery by Tenant. Tenant’s failure to deliver an estoppel certificate as
required pursuant to Paragraph 20.5(a) above shall be conclusive upon Tenant that (i) this Lease
is in full force and effect, without modification except as may be represented by Landlord and has
not been assigned, (ii) there are now no uncured defaults in Landlord’s performance, (iii) no
Rentals have been paid in advance except those that are set forth in this Lease, (iv) no
beneficiary of any security instrument encumbering the Premises and/or real property comprising
the Common Area shall be liable for the Security Deposit in the event of a foreclosure or sale
under such security instrument (unless such beneficiary shall receives such Security Deposit), (v)
the improvements to be constructed on the Premises by Landlord have been completed, and (vi)
Tenant has entered into occupancy of the Premises on such date as may be represented by Landlord
and is open and conducting business at the Premises. Tenant’s failure to deliver any financial
statements, estoppel certificates or other documents as required pursuant to Paragraph 20.5(a)
above shall be a Default by Tenant.

          20.6 Annual Financial Statements. If requested by a lender that has made a loan
secured by a deed of trust or mortgage affecting the Premises and/or real property comprising the
Common Area, Tenant shall deliver during the term of such loan an annual financial statement of
Tenant reasonably required by lender, which financial statement shall be certified by Tenant and
otherwise be in form and substance reasonably satisfactory to lender. All Tenant financial
statements delivered to a lender pursuant to this section shall be further subject to and submitted
in accordance with the provisions of Section 31.10 hereof. Landlord agrees to keep such financial
statements of Tenant delivered to it confidential, except that Landlord may deliver such Tenant
financial statements to any lender or prospective lender. Landlord shall request that any lender or
prospective lender or prospective purchaser of the Premises to whom Landlord delivers such
financial statements keep the same confidential and not disclose the same to any third parties
except those who may be assisting such lender or prospective lender or purchaser in deciding
whether to advance loan proceeds or purchase the Premises.

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     21. Holding Over. This Lease shall terminate without further notice at the
expiration of the Lease Term. Any holding over by Tenant after Lease Termination shall not
constitute a renewal or extension of the Lease Term, nor give Tenant any rights in or to the
Premises except as expressly provided in this Lease. Any holding over after Lease Termination
with the consent of Landlord shall be construed to be a tenancy from month to month, at one
hundred fifty percent (150%) of the monthly Rent for the month preceding Lease Termination in
addition to all Additional Rent payable hereunder, and shall otherwise be on the terms and
conditions herein specified insofar as applicable. If Tenant remains in possession of the
Premises after Lease Termination without Landlord’s consent Tenant shall indemnify, defend and
hold Landlord harmless from and against any loss, damage, expense, claim or liability resulting
from Tenant’s failure to surrender the Premises, including without limitation, any claims made by
any succeeding tenant based on delay in the availability of the Premises.

     22. Notices. Any notice required or desired to be given under this Lease shall be in
writing, and all notices shall be given by personal delivery or mailing. All notices personally
given on Tenant may be delivered to any person apparently in charge at the Premises, on any
corporate officer of Tenant or agent for service of process designated by Tenant if Tenant is a
corporation, or on any one signatory party if more than one party signs this Lease on behalf of
Tenant; any notice so given shall be binding upon all signatory parties as if served upon each
such party personally. Any notice given pursuant to this Paragraph 22 shall be deemed to have
been given when personally delivered, or if mailed, when seventy-two (72) hours have elapsed from
the time when such notice was deposited in the United States mail, certified or registered mail
and postage prepaid, addressed to the party at the last address given for purposes of notice
pursuant to the provisions of this Paragraph 22. At the date of execution of this Lease, the
addresses of Landlord and Tenant are set forth in Paragraph 1.11 above.

     23. Attorneys’ Fees. In the event either party hereto shall bring any action or
legal proceeding for damages for an alleged breach of any provision of this Lease, to recover
Rentals, to enforce an indemnity defense or hold harmless obligation, to terminate the tenancy of
the Premises, or to enforce, protect, interpret, or establish any term, condition, or covenant of
this Lease or right or remedy of either party, the prevailing party shall be entitled to recover,
as a part of such action or proceeding, reasonable attorneys’ fees and court costs, including
attorneys’ fees and costs for appeal, as may be fixed by the court or jury.

     24. Assignment, Subletting and Hypothecation.

          24.1 In General. Tenant shall not voluntarily sell, assign or transfer all or any
part of Tenant’s interest in this Lease or in the Premises or any part thereof, sublease all or
any part of the Premises, or permit all or any part of the Premises to be used by any person or
entity other than Tenant or Tenant’s employees, except as specifically provided in this Paragraph
24.

          24.2 Voluntary Assignment and Subletting.

          (a) Notice to Landlord. Tenant shall, by written notice, advise Landlord of
Tenant’s desire on a stated date (which date shall not be less than thirty (30) days nor more
than

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ninety (90) days after the date of Tenant’s notice) to assign this Lease or to sublet all or
any part of the Premises for any part of the Lease Term. Subject to the provisions of Section 24.11
below, said notice shall constitute an offer to terminate the Lease or Tenant’s interest in the
portion of the Premises specified pursuant to Paragraph 24.2(b) if the notice applies to a proposed
assignment of the Lease or Tenant’s interest therein, a proposed sublease of all or any part of the
Premises for more than fifty percent (50%) of the remainder of the Lease Term, or a proposed
sublease of more than fifty percent (50%) of the Premises for any period. Tenant’s notice shall
state the name, legal composition and address of the proposed assignee or subtenant, and Tenant
shall provide the following information to Landlord with said notice: a true and complete copy of
the proposed assignment agreement or sublease; a financial statement of the proposed assignee or
subtenant (certified as true and correct by an officer or partner of the proposed assignee or
subtenant) prepared in accordance with generally accepted accounting principles within one year
prior to the proposed effective date of the assignment or sublease; the nature of the proposed
assignee’s or subtenant’s business to be carried on in the Premises; the payments to be made or
other consideration to be given on account of the assignment or sublease; a current financial
statement of Tenant; and such other pertinent information as may be requested by Landlord, all in
sufficient detail to enable Landlord to evaluate the proposed assignment or sublease and the
prospective assignee or subtenant. Tenant’s notice shall not be deemed to have been served or given
until such time as Tenant has provided Landlord with all information reasonably requested by
Landlord pursuant to this Paragraph 24.2. Tenant shall immediately notify Landlord of any
modification to the proposed terms of such assignment or sublease. Tenant may withdraw its notice
at any time prior to exercise by Landlord, if applicable, of Landlord’s right to terminate as
described in Paragraph 24.2(b).

          (b) Offer to Terminate. If Tenant notifies Landlord of its desire to assign this
Lease or any interest herein, to sublet all or any part of the Premises for more than fifty
percent (50%) of the remainder of the Lease Term, or to sublet more than fifty percent (50%) of
the Premises for any period, Tenant’s notice shall constitute, subject to the provisions of
Section 24.11 below, an offer to terminate this Lease or Tenant’s interest in the portion of the
Premises specified and Landlord shall have the right, to be exercised by giving written notice to
Tenant within thirty (30) days after receipt of Tenant’s notice, to terminate the Lease (i)
entirely, in the event of a proposed assignment or a sublease of the entire Premises for the
remainder of the Lease Term, (ii) as to the portion of the Premises which is the subject of a
proposed sublease for more than fifty percent (50%) of the remainder of the Lease Term, or (iii)
as to the portion of the Premises which is the subject of a proposed sublease of more than fifty
percent (50%) of the Premises for any period, as specified in Tenant’s notice. If Tenant’s notice
specifies all of the Premises and Landlord elects to terminate, this Lease shall terminate on the
date stated in the notice given by Tenant pursuant to Paragraph 24.2(a), subject to any
obligations which have accrued and are unfulfilled as of such date. If Tenant’s notice specifies
less than all of the Premises and Landlord elects to terminate, this Lease shall terminate on the
date stated with respect to that portion of the Premises, and Rent and all other costs and
expenses payable by Tenant hereunder shall be adjusted pro rata, based upon the number of net
leasable square feet retained by Tenant after the termination, compared to the total number of net
leasable square feet in the entire Premises excluding any areas of the Premises designated in the
proposed sublease for ingress and egress and common areas, if any. The Lease as so amended shall

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continue thereafter in full force and effect. Landlord and Tenant shall execute an amendment
to this Lease specifying the new Premises, the adjusted Rent, a reasonable method for apportioning
maintenance and operating obligations based on the multitenant nature of the Premises, and Tenant’s
share of costs and expenses; provided, however, that failure by either party to execute such an
amendment shall not affect the validity of this Lease.

          (c) Landlord’s Consent. If Landlord does not exercise its right to terminate
pursuant to Paragraph 24.2(b) within thirty (30) days after receipt of Tenant’s notice or if a
proposed assignment or sublease is not subject to the provisions of Paragraph 24.2(b), Landlord
shall not unreasonably withhold its consent to the proposed assignment or subletting, on the terms
and conditions specified in said notice. Without otherwise limiting the criteria upon which
Landlord may withhold its consent to any proposed assignment or sublease, if Landlord withholds its
consent where a Default by Tenant has occurred and is uncured, such withholding of consent shall be
presumptively reasonable. Landlord and Tenant agree that fifty percent (50%) of any and all rent
paid by an assignee or subtenant in excess of the Rentals required to be paid by Tenant under this
Lease (prorated in the event of a sublease by Tenant to a third party or parties) less (i)
brokerage fees paid by Tenant in connection with the applicable assignment or sublease, (ii) tenant
improvement costs paid or incurred by Tenant in renovating or improving the Premises, or applicable
portion thereof, in connection with the applicable assignment or sublease, and (iii) reasonable
attorney’s fees paid or incurred by Tenant in connection with the applicable assignment or
sublease, shall be paid directly to Landlord, as Additional Rent, at the time and place specified
in this Lease. For the purposes of this Paragraph 24, the term “rent” shall include any
consideration of any kind received, or to be received, by Tenant from an assignee or subtenant, if
such sums are related to Tenant’s interest in this Lease or in the Premises, including, but not
limited to key money, bonus money, and payments (in excess of the fair market value thereof) for
Tenant’s assets, fixtures, trade fixtures, inventory, accounts, goodwill, equipment, furniture,
general intangibles, and any capital stock or other equity ownership interest of Tenant. Any
assignment or subletting without Landlord’s consent shall be voidable at Landlord’s option, and
shall constitute a Default by Tenant. Landlord’s consent to any one assignment or sublease shall
not constitute a waiver of the provisions of this Paragraph 24 as to any subsequent assignment or
sublease nor a consent to any subsequent assignment or sublease; further, Landlord’s consent to an
assignment or sublease shall not release Tenant from Tenant’s obligations under this Lease, and
Tenant shall remain jointly and severally liable with the assignee or subtenant.

          (d) Assumption of Obligations. In the event Landlord consents to any assignment, such
consent shall be conditioned upon the assignee expressly assuming and agreeing to be bound by each
of Tenant’s covenants, agreements and obligations contained in this Lease, pursuant to a written
assignment and assumption agreement in a form approved by Landlord. Landlord’s consent to any
assignment or sublease shall be evidenced by Landlord’s signature on said assignment and assumption
agreement or on said sublease or by a separate written consent. In the event Landlord consents to
a proposed assignment or sublease, such assignment or sublease shall be valid and the assignee or
subtenant shall have the right to take possession of the Premises only if an executed original of
the assignment or sublease is delivered to Landlord, and such document contains the same terms and
conditions as stated in

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Tenant’s notice to Landlord given pursuant to Paragraph 24.2(a) above, except for any such
modifications to which Landlord has consented in writing.

          24.3 Collection of Rent. Tenant hereby irrevocably gives to and confers upon Landlord,
as security for Tenant’s obligations under this Lease, the right, power and authority to collect
all rents from any assignee or subtenant of all or any part of the Premises as permitted by this
Paragraph 24, or otherwise, and Landlord, as assignee of Tenant, or a receiver for Tenant appointed
on Landlord’s application, may collect such rent and apply it toward Tenant’s obligations under
this Lease; provided, however, that until the occurrence of any Default by Tenant or except as
provided by the provisions of Paragraph 24.2(c) above, Tenant shall have the right to collect such
rent. Upon the occurrence of any Default by Tenant, Landlord may at any time without notice in
Landlord’s own name sue for or otherwise collect such rent, including rent past due and unpaid, and
apply the same, less costs and expenses of operation and collection, including reasonable
attorneys’ fees, toward Tenant’s obligations under this Lease. Landlord’s collection of such rents
shall not constitute an acceptance by Landlord of attornment by such subtenants; in the event of a
Default by Tenant, Landlord shall have all rights provided by this Lease and by law, and Landlord
may, upon re-entry and taking possession of the Premises, eject all parties in possession or eject
some and not others, or eject none, as Landlord shall determine in Landlord’s sole discretion.

          24.4 No Bonus Value. It is the intent of the parties hereto that this Lease shall
confer upon Tenant only the right to use and occupy the Premises, and to exercise such other rights
as are conferred upon Tenant by this Lease. The parties agree that, except to the extent provided
in Paragraph 24.2(c) above in which Landlord agrees to split equally rents paid to Tenant in excess
of the Rentals required to be paid by Tenant under this Lease (prorated in the event of a sublease
by Tenant to a third party or parties) less (i) brokerage fees paid by Tenant in connection with
the applicable assignment or sublease, (ii) tenant improvement costs paid or incurred by Tenant in
renovating or improving the Premises, or applicable portion thereof, in connection with the
applicable assignment or sublease, and (iii) reasonable attorney’s fees paid or incurred by Tenant
in connection with the applicable assignment or sublease, this Lease is not intended to have a
bonus value, nor to serve as a vehicle whereby Tenant may profit by a future assignment or sublease
of this Lease or the right to use or occupy the Premises as a result of any favorable terms
contained herein or any future changes in the market for leased space. It is the intent of the
parties that any such bonus value that may attach to this Lease shall be and remain, subject to the
provisions of Paragraph 24.2(c), the exclusive property of Landlord.

          24.5 Corporations and Partnerships. If Tenant is a partnership, any withdrawal or
substitution (whether voluntary, involuntary, or by operation of law and whether occurring at one
time or over a period of time) of any partner(s) owning fifty percent (50%) or more (cumulatively)
of the partnership, any assignment(s) of fifty percent (50%) or more (cumulatively) of any
interest in the capital or profits of the partnership, or the dissolution of the partnership shall
be deemed an assignment of this Lease requiring the prior written consent of Landlord. Subject to
the provisions of the immediately following paragraph, if Tenant is a corporation, any dissolution,
merger, consolidation or other reorganization of Tenant, any sale or transfer (or cumulative sales
or transfers) of the capital stock of Tenant in excess of fifty

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percent (50%), or any sale (or cumulative sales) of all of the assets of Tenant shall be
deemed an assignment of this Lease requiring the prior written consent of Landlord. Any such
withdrawal or substitution of partners or assignment of any interest in or dissolution of a
partnership tenant, and any such sale of stock or assets of a corporate tenant without the prior
written consent of Landlord shall be a Default by Tenant hereunder. The foregoing notwithstanding,
the sale or transfer of any or all of the capital stock of a corporation, the capital stock of
which is now or hereafter becomes publicly traded, shall not be deemed an assignment of this Lease.

     Notwithstanding anything contained in this Paragraph 24.5 above to the contrary, Tenant may
enter into any of the following transfers (each, a “Permitted Transfer”) without obtaining
Landlord’s consent (but Tenant shall give Landlord written notice of such Permitted Transfer
either prior to or promptly following the effective date of such Permitted Transfer): (i) a
sublease or assignment to any entity which controls, is controlled by or is under common control
with Tenant; (ii) a successor corporation related to Tenant by merger, consolidation,
non-bankruptcy reorganization or government action; or (iii) a purchaser of substantially all of
Tenant’s assets located at the Premises, provided that in either of the latter two instances the
successor or purchaser has a net worth not less than the net worth of Tenant at the time that
Tenant executes this Lease. Notwithstanding that a Permitted Transfer is made, Tenant shall not be
released from any of its obligations under this Lease and such purchaser, successor or transferee
described in clause (i), (ii) or (iii) of the immediately preceding sentence, as the case may be,
shall be required to assume all of Tenant’s obligations hereunder as a condition to such transfer
being permitted without Landlord’s consent. Landlord’s termination right set forth in Paragraph
24.2(b) above and Landlord’s right to receive fifty percent of the bonus rent as set forth in
Paragraph 24.2(c) above shall not apply to a Permitted Transfer.

          24.6 Reasonable Provisions. Tenant expressly agrees that the provisions of this
Paragraph 24 are not unreasonable standards or conditions for purposes of Section 1951.4(b)(2) of
the California Civil Code, as amended from time to time, under bankruptcy laws, or for any other
purpose.

          24.7 Attorney’s Fees. Tenant shall pay, as Additional Rent, Landlord’s reasonable
attorneys’ fees (not to exceed $1,000 per request) for reviewing, investigating, processing and/or
documenting any requested assignment or sublease, whether or not Landlord’s consent is granted.

          24.8 Involuntary Transfer. No interest of Tenant in this Lease shall be assignable,
involuntarily or by operation of law, including, without limitation, the transfer of this Lease by
testacy or intestacy. Each of the following acts shall be considered an involuntary assignment:

          (a) If Tenant is or becomes bankrupt or insolvent, makes an assignment for the benefit of
creditors, or a proceeding under any bankruptcy law is instituted in which Tenant is the bankrupt;
or, if Tenant is a partnership or consists of more than one person or entity, if any partner of
the partnership or other person or entity is or becomes bankrupt or insolvent, or makes an
assignment for the benefit of creditors;

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          (b) Levy of a writ of attachment or execution on this Lease;

          (c) Appointment of a receiver with authority to take possession of the Premises in any
proceeding or action to which Tenant is a party; or

          (d) Foreclosure of any lien affecting Tenant’s interest in the Premises, which lien was not
consented to by Landlord pursuant to Paragraph 24.9. An involuntary assignment shall constitute a
Default by Tenant and Landlord shall have the right to terminate this Lease, in which case this
Lease shall not be treated as an asset of Tenant. In the event the Lease is not terminated, the
provisions of Paragraph 24.2(c) regarding rents paid by an assignee or subtenant and Paragraph
24.4 shall apply. If a writ of attachment or execution is levied on this Lease, or if any
involuntary proceeding in bankruptcy is brought against Tenant or a receiver is appointed, Tenant
shall have sixty (60) days in which to cause the attachment or execution to be removed, the
involuntary proceeding dismissed, or the receiver removed.

          24.9 Hypothecation. Tenant shall not hypothecate, mortgage or encumber Tenant’s
interest in this Lease or in the Premises or otherwise use this Lease as a security device in any
manner without the consent of Landlord, which consent Landlord may withhold in its sole and
absolute discretion. Consent by Landlord to any such hypothecation or creation of a lien or
mortgage shall not constitute consent to an assignment or other transfer of this Lease following
foreclosure of any permitted lien or mortgage.

          24.10 Binding on Successors. The provisions of this Paragraph 24 expressly apply to
all heirs, successors, sublessees, assignees and transferees of Tenant.

          24.11
Contemplated Subleasing During First Two Years of Lease Term. Landlord
acknowledges that Tenant contemplates trying to sublease not more than fifteen thousand (15,000)
square feet of the Premises in the aggregate during the first two (2) years of the Lease Term.
Anything in Paragraph 24 of this Lease to the contrary notwithstanding, Landlord agrees that
Landlord’s termination right set forth in Paragraph 24.2(b) above and Landlord’s right to receive
fifty percent of the bonus rent as set forth in Paragraph 24.2(c) above shall not be applicable to
any sublease(s) entered into by Tenant with respect to less than fifteen thousand square feet of
the Premises (in any one sublease transaction or in the aggregate based on multiple transactions)
during the first two (2) years of the Lease Term.

     25. Hazardous Materials.

          25.1 Permitted Materials. Notwithstanding Paragraph 6.4 of the Lease, Tenant may
use, keep and store in the Premises those Hazardous Materials listed on Exhibit “D” attached hereto, and such other Hazardous Materials which may be approved by Landlord from
time to time in Landlord’s reasonable discretion, in such quantities and volumes as are necessary
to conduct Tenant’s business in the Premises (“Permitted Materials”). Permitted Materials shall be
used, kept, stored, disposed of, removed, and transported in strict compliance with all laws,
ordinances, regulations, rules, orders, and policies of any federal, state, county, municipal, or
other governmental authority (collectively, “Governmental Authority”) having jurisdiction over

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Hazardous Materials (“Environmental Laws”). Upon Landlord’s written request, Tenant shall
provide Landlord with an updated list of all Permitted Materials used, kept, or stored in the
Premises. Tenant shall promptly comply with any law, ordinance, or regulation of any Governmental
Authority requiring modifications to the Premises or the improvements thereon that are intended to
protect the Premises and the environment against the release of Hazardous Materials. Tenant shall
obtain all necessary permits from applicable Governmental Authorities required to maintain the
Permitted Materials and shall furnish Landlord with copies of such permits or any plans, reports or
other material required to be filed with any Governmental Authority relating to the use of the
Permitted Materials. Upon the expiration or sooner termination of this Lease, Tenant covenants to
remove from the Premises or Common Area, at its sole cost and expense, any and all Hazardous
Materials then located on or about the Premises or Common Area due to a Release of Hazardous
Materials by Tenant or Tenant’s agents.

     Tenant and Tenant’s agents shall not release or dispose, or allow the release or disposal, of
any Hazardous Materials, including Permitted Materials, in, on, under, or in the vicinity of the
Premises; provided, however, that Tenant shall dispose, remove and transport from the Premises and
Common Area any and all Permitted Materials in accordance with all Environmental Laws. Tenant
shall immediately notify Landlord of any inquiry, test, investigation, or enforcement proceeding
by or against Tenant or the Premises or Common Area concerning Hazardous Materials. Tenant
acknowledges that Landlord shall have the right, but not the obligation, in Landlord’s own name,
to negotiate, contest, defend, and approve, at Tenant’s expense, any action taken or threatened or
order issued by a Governmental Authority with regard to Tenant’s Release of Hazardous Materials on
the Premises or Common Area. Tenant shall, within five (5) days after receipt by Tenant, submit to
Landlord copies of all inquiries, test and investigation results, and enforcement proceedings
described above and copies of all reports and responses thereto prepared by or on behalf of
Tenant. In connection with the transportation of any Hazardous Materials to or from the Premises,
Tenant shall list itself as the transporter and generator.

          25.2 Landlord’s Inspection Rights. Landlord shall have the right, upon reasonable
advance notice to Tenant, to inspect, investigate, sample and/or monitor the Premises and Common
Area, including any soil, water, groundwater, or other sampling to the extent reasonably necessary
to determine whether Tenant is complying with the terms of this Lease with respect to Hazardous
Materials. In connection therewith, Tenant shall provide Landlord with reasonable access to all
portions of the Premises; provided, however, that Landlord shall avoid any unreasonable
interference with the operation of Tenant’s business on the Premises. All costs incurred by
Landlord pursuant to this subparagraph 25.2 above shall be reimbursed by Tenant to Landlord within
ten (10) days after Landlord’s demand for payment; provided, however, Tenant shall not be
obligated to reimburse Landlord for any costs Landlord incurs in inspecting, investigating,
sampling or monitoring the groundwater under the Premises or Common Area unless Landlord has
reasonable grounds to believe that Tenant has exacerbated such groundwater condition or to the
extent such groundwater condition has been exacerbated as a result of the acts of Tenant or any of
its agents, employees, contractors, consultants, subtenants, licensees or invitees. If Tenant
fails to perform or does not commence and thereafter diligently prosecute any obligation to be
performed by Tenant under this Lease with respect to Hazardous Materials within sixty (60) days
after the date of Tenant’s receipt of Landlord’s written notice of the

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obligation to be performed, Landlord shall have the right, but not the obligation, without
limitation upon any of Landlord’s other rights or remedies under this Lease or at law or in
equity, to enter upon the Premises and perform Tenant’s obligations hereunder at Tenant’s expense.
All sums reasonably disbursed, deposited, or incurred by Landlord in connection with the
performance of such obligation, including, but not limited to, all costs, expenses, and actual
attorneys’ fees, shall be due and payable by Tenant to Landlord as an item of additional rent on
demand by Landlord, together with interest thereon at the maximum rate allowed by law from the
date of such demand until paid by Tenant.

          25.3 Investigation and Remediation. If any investigation of the Premises or Common
Area reveals the presence of a Hazardous Material that was listed in Tenant’s list of Permitted
Materials, or any supplement or amendment thereto, or which was used by Tenant in the Premises but
not listed on the list of Permitted Materials and was not present on the Premises (or applicable
portion thereof) or the Common Area prior to the Commencement Date or at the time Tenant took
possession of such applicable portion of the Premises, then Tenant shall have the burden of proving
that Tenant is not responsible for the presence of such Hazardous Materials in the Premises and/or
Common Area. In such event, Tenant shall cause its environmental consultant, which consultant
shall be subject to the prior written approval of Landlord, which approval shall not be
unreasonably withheld, to promptly investigate the lateral and vertical extent of the Hazardous
Materials contamination. Within sixty (60) days after completion of such investigation, Tenant
shall also prepare and submit to Landlord or within such period commence to prepare and thereafter
diligently complete and submit to Landlord a comprehensive plan specifying the actions to be taken
by Tenant to remediate the Hazardous Materials to levels permitted by applicable Environmental Laws
(“Remediation Plan”). Any Remediation Plan shall be subject to the prior written approval of
Landlord, which approval shall not be unreasonably withheld or delayed. Within thirty (30) days
after Landlord’s approval of the Remediation Plan, Tenant shall commence and diligently prosecute
to completion all such actions necessary to remediate the Hazardous Materials in accordance with
the Remediation Plan. Any and all work performed pursuant to an Investigation Plan and/or
Remediation Plan shall be performed at Tenant’s sole cost and expense.

          25.4 Tenant’s Indemnity. Tenant shall indemnify, defend, and hold Landlord and
Landlord’s partners, employees, and agents harmless from and against any and all claims, actions,
suits, proceedings, orders, judgments, losses, costs, damages, liabilities, or expenses (including,
without limitation, attorneys’ fees and costs of investigation, remediation, and/or cleanup)
arising in connection with any Hazardous Materials Released in, on, under, or in the vicinity of
the Premises or the Common Area by Tenant or any of Tenant’s agents, or any Hazardous Materials
shipped thereto or therefrom, by Tenant or any of Tenant’s agents including, without limitation,
(a) the investigation or remediation of Hazardous Materials Released by Tenant or Tenant’s agents
in, on, or under the Premises or Common Area and the removal, transportation, and disposal
of contaminated building materials, soils and/or groundwater arising from the remediation of
such contamination, whether voluntary or required by any Governmental Authority; (b) ongoing
monitoring of any Hazardous Materials contamination in, on, or under the Premises or Common
Area, whether voluntary or required by any Governmental Authority; (c) the migration of any
Hazardous Materials contamination to

-39-

 

nearby properties, (d) personal injury, death, or property damage arising out of the
presence of the Hazardous Materials contamination in, on, or under the Premises or Common Area; (e)
damage to or loss of use of the Premises or Common Area or the environment or diminution in value
of the Premises or Common Area; and (f) fines, penalties, or other assessments levied against the
Premises or Common Area or Landlord as a result of the presence of the Hazardous Materials
contamination. The foregoing indemnity shall run to the benefit of Landlord, its partners,
directors, officers, employees, agents, and successors and assigns, any existing or future lender
who extends credit to Landlord, or its successors and assigns, which credit is secured by a
mortgage or deed of trust on the Premises, any person or entity who acquires the interest of
Landlord in the Premises (except Tenant), and any person who acquires a lender’s interest in the
Premises, either through foreclosure, deed in lieu of foreclosure, or exercise of any rights or
remedies under the documents governing a loan or extension of credit.

          25.5 Assignment and Subletting. It shall be presumptively reasonable for Landlord
to withhold its consent to any proposed assignment or subletting if the proposed assignee or
subtenant’s use of the Premises would require the storage, use, handling, generation, disposal or
transportation of Hazardous Materials other than the Permitted Materials unless such assignee or
subtenant submits to Landlord, prior to occupancy, a list of Permitted Materials, which list shall
be subject to the reasonable approval of Landlord.

          25.6 Disclosures by Landlord. Landlord discloses to Tenant that, pursuant to an Order
or Orders imposed by the California Regional Water Quality Control Board, certain remedial action
has been undertaken or is being undertaken in connection with certain portions of the Common Area
or soils or groundwater underlying such Common Area. The terms and conditions of that certain
Covenant to Restrict Use of Property executed by RREEF USA FUND-III, a California Group Trust,
and the California Regional Water Quality Control Board, recorded December 30, 1991, concerning the
remedial action referred to above is incorporated herein by reference. This recorded document
affects that property at 3050 Coronado Drive and the parking lot adjacent thereto. Tenant hereby
acknowledges that Landlord has delivered or made available to Tenant, without representation as to
accuracy or completeness, those certain environmental reports or studies referred to in Exhibit
“E” attached hereto. Landlord hereby acknowledges and agrees that Tenant shall not be liable to
Landlord for the clean up or remediation of, or cost to clean up or remediate, any Hazardous
Materials existing on, in or under the Premises or the Common Area as of the Commencement Date of
this Lease (unless Tenant or any of its agents caused or exacerbates the pre-existing environmental
condition of the Premises or the Common Area).

          25.7 Environmental Assessments by Lender. Tenant shall permit any lender who has
made or will make a loan secured by a deed of trust or mortgage affecting the Premises and/or real
property comprising the Common Area, and/or such lender’s agents, employees and consultants, to
enter onto the Premises and/or the real property comprising the Common Area at reasonable times and
with reasonable notice to Tenant in order to perform and/or cause to perform environmental testing
and/or site assessments of such property, including, without limitation, Phase II environmental
assessments, to the extent permitted under the deed or trust or mortgage and/or under any other
loan documents executed in connection with such deed of trust

-40-

 

or mortgage, provided that the performance and conduct of such environmental testing
assessments shall not unreasonably interfere with Tenant’s possession of the Premises or otherwise
impede the conduct of Tenant’s operations on the Premises and/or the real property comprising the
Common Area.

          25.8 Survival. The provisions of this Paragraph 25 shall survive any
termination of the Lease.

     26. Successors. Subject to the provisions of Paragraph 24 above
and Paragraph 31.2(a) below, the covenants, conditions, and agreements contained in this Lease
shall be binding on the parties hereto and on their respective heirs, successors and assigns.

     27. Landlord Default; Mortgage Protection. Landlord shall not be in default under
this Lease unless Tenant shall have given Landlord written notice of the breach and, within thirty
(30) days after notice, Landlord has not cured the breach or, if the breach is such that it cannot
reasonably be cured under the circumstances within thirty (30) days, has not commenced diligently
to prosecute the cure to completion. Any money judgment obtained by Tenant based upon Landlord’s
breach of this Lease shall be satisfied only out of the proceeds of the sale or disposition of
Landlord’s interest in the Premises (whether by Landlord or by execution of judgment). In the
event of any default on the part of Landlord under this Lease, Tenant shall give notice by
registered or certified mail to any beneficiary of a deed of trust or any mortgagee of a mortgage
affecting the Premises and/or the real property comprising the Common Area whose address shall have
been furnished to Tenant, and shall offer such beneficiary or mortgagee a reasonable opportunity to
cure the default, including time to obtain possession of the Premises by power of sale or judicial
foreclosure, if such should prove necessary to effect a cure.

     28. Exhibits. All exhibits attached to this Lease shall be deemed to be incorporated
herein by the individual reference to each such exhibit, and all such exhibits shall be deemed to
be a part of this Lease as though set forth in full in the body of the Lease.

     29. Surrender of Lease Not Merger. The voluntary or other surrender of this Lease by
Tenant, or a mutual cancellation thereof, shall not work a merger and shall, at the option of
Landlord, terminate all or any existing subleases or subtenants, or may, at the option of Landlord,
operate as an assignment to Landlord of any or all such subleases or subtenants. As provided in
Paragraph 2.2 above, the Sublease to which Landlord, as sublessor, and Tenant, as sublessee are
currently parties shall terminate as of December 31, 2001 (except that all of Tenant’s obligations
under the Sublease accruing prior to January 1, 2002 shall survive the termination of such
Sublease).

     30. Waiver. The waiver by Landlord of any breach of any term, covenant or condition
herein contained (or the acceptance by Landlord of any performance by Tenant after the time the
same shall become due) shall not be deemed to be a waiver of such term, covenant or condition or
any subsequent breach thereof or of any other term, covenant or condition herein contained, unless
otherwise expressly agreed to by Landlord in writing. The acceptance by Landlord of any

-41-

 

sum less than that which is required to be paid by Tenant shall be deemed to have been received
only on account of the obligation for which it is paid (or for which it is allocated by Landlord,
in Landlord’s absolute discretion, if Tenant does not designate the obligation as to which the
payment should be credited), and shall not be deemed an accord and satisfaction notwithstanding any
provisions to the contrary written on any check or contained in any letter of transmittal. The
acceptance by Landlord of any sum tendered by a purported assignee or transferee of Tenant shall
not be deemed a consent by Landlord to any assignment or transfer of Tenant’s interest herein. No
custom or practice which may arise between the parties hereto in the administration of the terms of
this Lease shall be construed as a waiver or diminution of Landlord’s right to demand performance
by Tenant in strict accordance with the terms of this Lease.

     31. General.

          31.1 Captions and Headings. The captions and paragraph headings used in this Lease are
for convenience of reference only. They shall not be construed to limit or extend the meaning of
any part of this Lease, and shall not be deemed relevant in resolving any question of
interpretation or construction of any paragraph of this Lease.

          31.2 Definitions.

          (a) Landlord. The term Landlord as used in this Lease, so far as the covenants or
obligations on the part of Landlord are concerned, shall be limited to mean and include only the
owner at the time in question of the fee title to the Premises. In the event of any transfer(s) of
such interest, the Landlord herein named (and in case of any subsequent transfers or conveyances,
the then grantor) shall have no further liability under this Lease to Tenant except as to matters
of liability which have accrued and are unsatisfied as of the date of such transfer, it being
intended that the covenants and obligations contained in this Lease on the part of Landlord shall
be binding on Landlord and its successors and assigns only during and in respect of their
respective periods of ownership of the fee; provided that any funds in the possession of Landlord
or the then grantor and as to which Tenant has an interest, less any deductions permitted by law or
this Lease, shall be turned over to the grantee. The covenants and obligations contained in this
Lease on the part of Landlord shall, subject to the provisions of this Paragraph 31.2(a), be
binding upon each Landlord and such Landlord’s heirs, personal representatives, successors and
assigns only during its respective period of ownership. Except as provided in this Paragraph
31.2(a), this Lease shall not be affected by any transfer of Landlord’s interest in the Premises,
and Tenant shall attorn to any transferee of Landlord provided that all of Landlord’s obligations
hereunder are assumed in writing by such transferee.

          (b) Agents. For purposes of this Lease and without otherwise affecting the
definition of the word “agent” or the meaning of an “agency”, the term “agents” shall be deemed to
include the agents, employees, officers, directors, servants, invitees, contractors, successors,
representatives subcontractors, guests, customers, suppliers, partners, affiliated companies, and
any other person or entity related in any way to the respective party, Tenant or Landlord.

-42-

 

          (c) Interpretation of Terms. The words “Landlord” and “Tenant” as used herein shall
include the plural as well as the singular. Words in the neuter gender include the masculine and
feminine and words in the masculine or feminine gender include the neuter.

          31.3 Copies. Any executed copy of this Lease shall be deemed an original for all
purposes.

          31.4 Time of Essence. Time is of the essence as to each and every provision in this
Lease requiring performance within a specified time, except as to the conditions relating to the
delivery of possession of the Premises to Tenant.

          31.5 Severability. In case any one or more of the provisions contained herein shall
for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision of this Lease, but this Lease
shall be construed as if such invalid, illegal or unenforceable provision had not been contained
herein. However, if Tenant’s obligation to pay the Rentals is determined to be invalid or
unenforceable, this Lease at the option of Landlord shall terminate.

          31.6 Governing Law. This Lease shall be construed and enforced in accordance with the
laws of the State of California.

          31.7 Joint and Several Liability. If Tenant is more than one person or entity, each
such person or entity shall be jointly and severally liable for the obligations of Tenant
hereunder. If Tenant is a husband and wife, the obligations hereunder shall extend to their sole
and separate property as well as community property.

          31.8 Construction of Lease Provisions. Although printed provisions of this Lease
were prepared by Landlord, this Lease shall not be construed either for or against Tenant or
Landlord, but shall be construed in accordance with the general tenor of the language to reach a
fair and equitable result.

          31.9 Conditions. All agreements by Tenant contained in this Lease, whether expressed
as covenants or conditions, shall be construed to be both covenants and conditions.

          31.10 Tenant’s Financial Statements. Tenant hereby warrants that all financial
statements delivered by Tenant to Landlord are true, correct, and complete, and prepared in
accordance with generally accepted accounting principles. Tenant acknowledges and agrees that
Landlord is relying on such financial statements in accepting this Lease, and that a breach of
Tenant’s warranty as to such financial statements shall constitute a Default by Tenant.

          31.11
Withholding of Landlord’s Consent Notwithstanding any other provision of this
Lease, where Tenant is required to obtain the consent (whether written or oral) of Landlord to do
any act, or to refrain from the performance of any act, Tenant agrees that if Tenant is in default
with respect to any term, condition, covenant or provision of this Lease,

-43-

 

then Landlord shall be deemed to have acted reasonably in withholding its consent if said
consent is, in fact, withheld.

     32. Signs. Tenant shall not place or permit to be placed any sign or decoration on the
Common Area or the exterior of the Premises or that would be visible from the exterior of the
Premises, without the prior written consent of Landlord, which consent may be withheld in
Landlord’s absolute discretion. In no event shall any such sign revolve, rotate, move or create
the illusion of revolving, rotating or moving or be internally illuminated and there shall be no
exterior spotlighting or other illumination on any such sign. Tenant, upon written notice by
Landlord, shall immediately remove any of Tenant’s signs or decorations that are visible from the
exterior of the Premises or that Tenant has placed or permitted to be placed on the Common Area or
the exterior of the Premises without the prior written consent of Landlord. If Tenant fails to so
remove such sign or decoration within five (5) days after Landlord’s written notice, Landlord may
enter the Premises and remove such sign or decoration and Tenant shall pay Landlord, as Additional
Rent upon demand, the cost of such removal. All signs placed on the Premises or Common Area by
Tenant shall comply with all recorded documents affecting the Premises, including but not limited
to any Declaration of Conditions, Covenants and Restrictions (as the same may be amended from time
to time); and applicable statutes, ordinances, rules and regulations of governmental agencies
having jurisdiction thereof. At Landlord’s option, Tenant shall at Lease Termination remove any
sign which it has placed on the Premises or the Common Area, and shall, at its sole cost, repair
any damage caused by the installation or removal of such sign.

     33. Landlord as Party Defendant. If, by reason of any act or omission by Tenant or
Tenant’s agents, Landlord is made a party defendant concerning this Lease, the Premises, or the
Common Area, Tenant shall indemnify Landlord against all liability incurred (or threatened against)
Landlord as a party defendant, including all damages, costs and attorneys’ fees.

     34. Landlord Not a Trustee. Landlord shall not be deemed to be a trustee of any funds
paid to Landlord by Tenant (or held by Landlord for Tenant) pursuant to this Lease, including
without limitation the Security Deposit. Landlord shall not be required to keep any such funds
separate from Landlord’s general funds. Any funds held by Landlord pursuant to this Lease shall
not bear interest.

     35. Interest. Any payment due from Tenant to Landlord, except for Rent or
Additional Rent received by Landlord within thirty (30) days after the same is due, shall bear
interest from the date due until paid, at an annual rate equal to the greater of: ten percent
(10%); or five percent (5%) plus the rate established by the Federal Reserve Bank of San Francisco,
as of the twenty-fifth (25th) day of the month immediately preceding the due date, on advances to
member banks under Sections 13 and 13(a) of the Federal Reserve Act, as now in effect or hereafter
from time to time amended. In addition, Tenant shall pay all reasonable costs and attorneys’ fees
incurred by Landlord in the collection of such amounts.

     36. Surrender of Premises. On the last day of the Lease Term or upon the sooner
termination of this Lease, Tenant shall, to the reasonable satisfaction of Landlord, surrender the

-44-

 

Premises to Landlord in good condition (reasonable wear and tear excepted) with all originally
painted interior walls washed, or re-painted if marked or damaged and other interior walls cleaned
and repaired or replaced, all carpets cleaned and in good condition, the air conditioning,
ventilating and heating equipment inspected, serviced and repaired by a reputable and licensed
service firm (unless Landlord has elected to maintain heating and air conditioning systems pursuant
to Paragraph 10.1 above), and all floors cleaned and waxed. Tenant shall remove all of Tenant’s
personal property and trade fixtures from the Premises (but not Tenant’s Alterations not required
by Landlord to be removed pursuant to Paragraph 13.2), and all property not so removed shall be
deemed abandoned by Tenant. Furthermore, Tenant shall immediately repair all damage to the Premises
and Common Area caused by any such removal. If the Premises are not so surrendered at Lease
Termination, Tenant shall indemnify, defend and hold Landlord harmless from and against any loss,
damage, expense, claim or liability resulting from delay by Tenant in so surrendering the Premises
including, without limitation, any claims made by any succeeding tenant or losses to Landlord due
to lost opportunities to lease to succeeding tenants.

     37. No Partnership or Joint Venture. Nothing in this Lease shall be construed as
creating a partnership or joint venture between Landlord, Tenant, or any other party, or cause
Landlord to be responsible for the debts or obligations of Tenant or any other party.

     38. Entire Agreement. Any agreements, warranties, or representations not expressly
contained herein shall in no way bind either Landlord or Tenant, and Landlord and Tenant expressly
waive all claims for damages by reason of any statement, representation, warranty, promise or
agreement, if any, not contained in this Lease. This Lease supersedes and cancels any and all
previous negotiations, arrangements, brochures, agreements and understandings, whether written or
oral, between Landlord and its agents and Tenant and its agents with respect to the Premises,
Common Area or this Lease. This Lease constitutes the entire agreement between the parties hereto
and no addition to, or modification of, any term or provision of this Lease shall be effective
until and unless set forth in a written instrument signed by both Landlord and Tenant.

     39. Submission of Lease. Submission of this instrument for Tenant’s examination or
execution does not constitute a reservation of space nor an option to lease. This instrument shall
not be effective until executed by both Landlord and Tenant. Execution of this Lease by Tenant
shall constitute an offer by Tenant to lease the Premises, which offer shall be deemed accepted by
Landlord when this Lease is executed by Landlord and delivered to Tenant.

     40. Quiet Enjoyment. Landlord covenants and agrees with Tenant that upon Tenant
paying Rentals and performing its covenants and conditions under the Lease, Tenant shall and may
peaceably and quietly have, hold and enjoy the Premises for the Lease Term, subject, however, to
the terms of this Lease and of any mortgages or deeds of trust affecting the Premises and/or the
real property comprising the Common Area, and the rights reserved by Landlord hereunder. Any
purchaser upon any foreclosure or exercise of the power of sale under any mortgage or deed of trust
made by Landlord and covering the Premises to whom Tenant attorns pursuant to Paragraph 20.4 above
shall be bound by the terms of this Paragraph 40.

-45-

 

     41. Authority. The undersigned parties hereby warrant that they have proper
authority and are empowered to execute this Lease on behalf of the Landlord and Tenant,
respectively. If Tenant is a corporation (or partnership), each individual executing this Lease on
behalf of said corporation (or partnership) represents and warrants that he is duly authorized to
execute and deliver this Lease on behalf of said corporation in accordance with a duly adopted
resolution of the Board of Directors of said corporation or in accordance with the by-laws of said
corporation (or on behalf of said partnership in accordance with the partnership agreement of such
partnership), and that this Lease is binding upon said corporation (or partnership) in accordance
with its terms. If Tenant is a corporation, Tenant shall upon execution of this Lease, deliver to
Landlord a certified copy of the resolution of the Board of Directors of said corporation
authorizing or ratifying the execution of this Lease. In the event Tenant should fail to deliver
such resolution to Landlord upon execution of this Lease, Landlord shall not be deemed to have
waived its right to require delivery of such resolution, and at any time during the Lease Term
Landlord may request Tenant to deliver the same, and Tenant agrees it shall thereafter promptly
deliver such resolution to Landlord. If Tenant is a corporation, Tenant warrants that:

          (a) Tenant is a valid and existing corporation;

          (b) Tenant is qualified to do business in California;

          (c) All fees and all franchise and corporate taxes are paid to date, and will be paid when
due;

          (d) All required forms and reports will be filed when due; and

          (e) The signers of this Lease are properly authorized to execute this Lease.

     42. Building Plans. Tenant acknowledges that any plan of the Premises and Common Area
which may have been displayed or furnished to Tenant or which may be a part of Exhibit “A”
is tentative; Landlord may change the exterior of the Premises and the shape, size, location,
number, and extent of the Common Area improvements shown on any such plan and eliminate or add any
improvements to the Common Area in Landlord’s sole discretion; provided, however, that the Premises
shall be substantially as shown on such plan.

(signature page follows)

-46-

 

     IN WITNESS WHEREOF, the parties have executed this Lease effective as of the date set
forth below.

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	SI HAHN LLC,	 	 	 	MELLANOX TECHNOLOGIES, INC.,	 	 
	a California limited liability company	 	 	 	A California corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Sang Hahn
	 	 	 	By:
	 	/s/ E. Waldman	 	 
	 

	 	 

SangHahn
	 	 
	 	Title:
	 	 

CEO
	 	 
	Title:

	 	Manager	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	DATE:

	 	JAN. 23, 2002	 	 	 	DATE
	 	1-22-02	 	 

-47-

 

EXHIBITS

	 	 	 	 	 	 	 
	A.

	 	Site Plan
	 	Paragraph 1.4
	 	(Premises shown cross-hatched and
Common Area outlined in red
pursuant to
Paragraph 2.1)
	 
	 	 	 	 	 	 
	B.

	 	Legal Description
	 	 	 	Paragraph 2.1
	 
	 	 	 	 	 	 
	C.

	 	Intentionally	 	 	 	 
	 

	 	Omitted	 	 	 	 
	 
	 	 	 	 	 	 
	D.

	 	List of Permitted	 	 	 	 
	 

	 	Hazardous Materials
	 	 	 	Paragraph 25
	 
	 	 	 	 	 	 
	E.

	 	List of	 	 	 	 
	 

	 	Environmental	 	 	 	 
	 

	 	Reports
	 	 	 	Paragraph 25.6
	 
	 	 	 	 	 	 
	F.

	 	Form of Estoppel	 	 	 	 
	 

	 	Certificate
	 	 	 	Paragraph 20.5

- 48 -

 

EXHIBIT A

CORONADO/STENDER

BUSINESS PARK

 

 

EXHIBIT B

Order No. 516606

LEGAL DESCRIPTION

REAL PROPERTY in the City of Santa Clara. County of Santa Clara. State of California, described as
follows:

PARCEL ONE:

“Pcl One”, so designated and delineated on the Parcel Map recorded April 17, 1974 in Book 338 of
Maps, page 29, Santa Clara County Records.

PARCEL TWO:

“Pcl Three” and “Pcl Four”, so designated and delineated on the Parcel Map recorded April 24, 1974
in Book 338 of Maps, page 50, Santa Clara County Records.

PARCEL THREE:

Parcel 1 as shown on that certain Parcel Map filed in the Office of the Recorder of the County of
Santa Clara, State of California on June 28, 1985 in Book 666 of Maps, page(s) 46, 47 and 48.

PARCEL THREE-A:

PRIVATE ACCESS EASEMENT

An
easement for ingress and egress, situate in the City of Santa Clara, across Parcel 2 for the
benefit of Parcel 1, as said parcels are shown on the parcel map
filed on June 28, 1985 in Book 666
of Maps at pages 46, 47 and 48, in the Office of the County Recorder of Santa Clara State of
California, said easement being described as follows:

Beginning at the most Southeasterly corner of said Parcel 2; thence along the Southerly line of
said Parcel 2, North 89’00’32’ West 220.01 feet thence leaving said Southerly line, North 00’58’28’
East 12.50 feet thence South 89’00’32’ East 220.01 feet to the Easterly line of said Parcel 2;
thence along said Easterly line South 00’59’28’ West 12.50 feet to the point of beginning.

PARCEL THREE-B:

PRIVATE STORM DRAINAGE EASEMENT

An easement for storm drainage purposes, situate in the City of Santa Clara, in, under, on, over
and across Parcel 2 for the benefit of Parcel 1, as said parcels are shown on the parcel map filed
on June 28, 1985 in Book 666 of Maps at pages 46, 47 and 48, in the Office of the County Recorder
of Santa Clara, States of California, said easement being described as follows:

(LEGAL DESCRIPTION CONTINUED NEXT PAGE)

 

 

Order No. 515806

LEGAL DESCRIPTION (Continued)

Commencing at the Southeasterly corner of said Parcel 2: thence along the Southerly line of
said Parcel 2 North 89ú 00ú 28ú West 12.12 feet to the true point of beginning of this description;
thence from said true point of beginning, along said Southerly line North 89ú 00ú 32ú West 4.55
feet; thence leaving said Southerly line North 74ú 38ú 58ú West 205.48 feet; thence North 15ú 21ú
01ú East 5.00 feet; thence South 74ú 38ú 59ú East 199.21 feet; thence North 07ú 11ú 08ú East 116.84
feet; thence South 89ú 00ú 32ú East 8.97 feet to the Easterly line of said Parcel 2: thence along
said Easterly line South 00ú 58ú 28ú West 10.00 feet; thence leaving said Easterly line South 07ú
11ú 08ú West 112.32 feet to the true point of beginning.

PARCEL THREE—C:

PRIVATE SANITARY SEWER EASEMENT

An
easement for sanitary sewer purposes, situate in the City of Santa Clara. In, under, on, ever and
across Parcel 2 for the benefit of Parcel 1, as said parcels are shown on the parcel map filed on
June 28, 1985. In Book 666 of Maps at pages 46, 47 and 48. In the
Office of the County Recorder of
Santa Clara, State of California said easement being described as follows:

The
Easterly 10.00 feet of the Southerly 2.50 feet of said Parcel 2.

PARCEL
THREE - D:

PRIVATE STORM DRAINAGE EASEMENT FOR SURFACE RUN-OFF

An
easement for storm drainage purposes for surface run-off, situate in the City of Santa Clara
across Parcel 2 for the benefit of Parcel, as said parcels are shown on the parcel map filed on June 28,
1995 in Book 666 of Maps at pages 48, 47 and 48 in the Office of the County Recorder of Santa
Clara State of California said easement being described as follows:

Beginning
at the most Southeasterly corner at said Parcel 2: thence along the
Southerly line of
said Parcel 2 North
880 OC’ 320 West 220.01 feet thence leaving said Southerly line North 000 58’ 280
East 83.97 feet; thence South 730 12’ 23’ East 112.73 feet thence South 000 58’ 280 West 18.38 feet
thence South
880
000
32’ East 112.09 feet to the Easterly line of said Parcel 2; thence along said
Easterly line South 000 58 28’ West 12.50 feet to the point of beginning.

APN: 216-29-082, 109, 110; 218-48-20

ARB: 218-29-4, 4.08, 4.08, 4.07, 20.02, 20.03, 70.04

 

 

EXHIBIT C

INTENTIONALLY OMITTED

-1-

 

EXHIBIT D

LIST OF PERMITTED HAZARDOUS MATERIALS

-1-

 

EXHIBIT
E

	 	 	 	 	 	 	 
	12/30/1994

	 	Phase I Environmental Site

Assessment (revised)
	 	From ATC Environmental
Inc. for RREEF America
Partners as investment
Managers for RREEFUSA
Fund III on Coronado Stender
Business Park
	 	2900-3040 Coronado Drive
and 2902 and 2972 Stender
Way. Santa Clara
	 
	 	 	 	 	 	 
	12/30/94

	 	Soil and Groundwater Sampling
(revised)
	 	From ATC Environmental Inc.
for The RREEF Funds on
Coronado Business Park
	 	3000-3040 Coronado

 Drive,
Santa Clara
	 
	 	 	 	 	 	 
	3/13/95

	 	Revised Phase II Soil and
Groundwater Sampling
	 	From ATC Environmental
Inc.
to RREEF Funds
	 	3000-3040 Corcnado

Drive

Santa Clara
	 
	 	 	 	 	 	 
	3/10/98

	 	Workplan For Remedial
Activities
(Electroglas, Inc.)
	 	From Erter &
Kalinowski, Inc.
	 	2901 Coronado Drive,
3001
Coronado Drive, and
2900/2902 Stender Way,
Santa Clara
	 
	 	 	 	 	 	 
	11/3/98

	 	Letter to Sonia Echevenia
(Electroglass) from RWQC
	 	No Further Action for
Soil
Remedial Activities for
Electroglass, Inc.
	 	2901 Coronado Drive,
3001
Coronado Drive, and
2900/2902 Stender Way,
Santa Clara
	 
	 	 	 	 	 	 
	11/6/98

	 	Letter to Kevin Archer
(RREEF
USA Fund III) from Stephen
A.
Trantino, P.E. and Earl D.
James, R.G.,
	 	No further Action
Letter, Soil
Remediation and Sanitary
Sewer and Storm Drain
Replacement Activities
	 	2901 Coronado Drive,
3001
Coronado Drive, and
2900/2902 Stender
Way,
Santa Clara
	 
	 	 	 	 	 	 
	11/9/98

	 	Letter to Mr. Joe Price
(Electroglas) from Loretta
Barsamian (Executive Officer of
RWQC)
	 	Groundwater Remedial
Activities for the
Electroglas,
Inc. Site
	 	2901 Coronado Drive, 3001
Coronado Drive, and
2900/2902 Stender Way
Santa Clara
	 
	 	 	 	 	 	 
	11/16/98

	 	Letter to Mr. David Barr
(RWQC)
from Eart D. James, R.G.
(Project Manager of Erter &
Kalinowski, Inc.)
	 	Request for
Clarification of
Groudwater Remedial
Activities letter Dated
November 09, 1998
	 	2901 Coronado Drive,
3001
Coronado Drive, and
2900/2902 Stender Way
Santa Clara
	 
	 	 	 	 	 	 
	11/25/98

	 	Letter to Mr. Joe Price
(Electroglas) from Loretta
Barsamian (Executive Officer of
RWQC) and Stephen Mores
(Chief, Toxics Cleanup Division
of RWQC)
	 	Groundwater Remedial
Activities for the
Electroglas,
Inc. Site
	 	2901 Coronado Drive, 3001
Coronado Drive, and
2900/2902 Stender Way,
Santa Clara
	 
	 	 	 	 	 	 
	12/22/98

	 	Results of Subsurface
Environmental Investigations and
	 	From Erter $ Kalinowski, Inc.
	 	2901 Coronado Drive, 3001

Coronado Drive, and
	 

	 	Proposed Remedial Activities
(Electroglas, Inc.)
	 	 	 	2900/2902 Stender Way,

Santa Clara
	 
	 	 	 	 	 	 
	3/3/99

	 	Annual Environmental Audit
	 	From Hygienetics

Environmental prepared

for RREEF Funds
	 	2901,2920,2970,3000,3001,3016, and 3032
Coronado
Drive and 2900 and 2972
Stender Way, Santa Clara

 

 

	 	 	 	 	 	 	 
	3/18/99

	 	Memo from Larry R.
Cummins for Letter
dated 4/16/96 to
Scott Sargis (Vice
President and
Corporate Counsel)
from William E.
Motzer, PhD., R.G.
(Director
Hydrogeology/Environmental Engineering
Services
	 	Underground Utility

Incident
	 	2900-3040 Coronado
Drive and 2900,
2902, 2962, and
2972 Stender Way,
Santa Clara
	 
	 	 	 	 	 	 
	3/23/99

	 	Phase I
	 	By All West to SI Hahn	 	 
	 
	 	 	 	 	 	 
	6/11/99

	 	Operations &

Maintenance Program
	 	By All West	 	 

 

 

EXHIBIT F

TENANT ESTOPPEL CERTIFICATE

	 	 	 	 	 	 	 	 	 
	TO:

	 	 	 	 	 	(“Purchaser”)	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	, 	 	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	and
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(“Lender”)	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	, 	 	 	 	 	 
	 

	 	 

	 	 

	 	 

	 	 

	 	 	 	 	 	 	 	 	 
	RE:

	 	Lease Dated:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Landlord:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Tenant:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Premises:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Santa Clara, California	 	 	 	 
	 

	 	 	 	 	 	square feet	 	 
	 

	 	 	 	 	 	 	 	 

     The undersigned tenant (herein called “Tenant”) is the lessee of certain space (the
“Premises”) located at the above-captioned address (the “Property”) under the terms of a
lease (the
“Lease”) with                                          (“Landlord”).

     At Landlord’s request, and knowing that Landlord (and its successors or assigns), Purchaser
or Lender (or its successors or assigns), as the case may be, will rely upon the accuracy of the
information contained herein, Tenant certifies to Landlord and Purchaser or Lender (and to their
respective successors and assigns), as the case may be, as follows:

     1. The Lease is dated January 1, 2002. A true, correct and complete copy of the Lease,
including all amendments and modifications thereto, if any, is attached hereto as Exhibit
A and
incorporated herein by this reference.

     2. The commencement date of the Lease is January 1, 2002, and the expiration date of
the current term of the Lease is June 30, 2006. The commencement of occupancy was
                                        , 2002. The commencement and expiration dates of all renewals
to the Lease term are as follows (if none, write “None”): None.

     3.  (a) The fixed monthly rental presently payable under the Lease is $                      and
has been paid through
                    , ___.

          (b) All additional rent (including, as applicable, operating costs, common area expenses,
taxes, utilities, percentage rents, etc.) payable under the terms of the Lease has been paid

 

 

through                     , ___, and the Tenant is not presently contesting any amount or Tenant’s share thereof.
Percentage rent is payable under the Lease as follows (if none, write
“None”):                                                                        
 .

          (c) Tenant has paid all taxes, charges, maintenance, insurance, utilities and other costs or
expenses payable by Tenant under the terms and provisions of the Lease and no amounts remain
unpaid as of the date hereof, and Tenant is not presently contesting any amount, or Tenant’s
Share, if applicable thereof.

     4. The amount of security deposit being held by Landlord is $                    . No interest is or will in
the future become due or payable in connection with the security deposit.

     5. The Lease is in full force and effect and is binding and enforceable against Tenant in
accordance with its terms.

     6. The Lease constitutes the entire agreement between Landlord and Tenant with
respect to the Premises and the Lease has not been amended, modified, supplemented, renewed or
otherwise changed in any way, and there are no agreements or obligations between Tenant and
Landlord, either oral or written, to amend, renew, supplement, change or modify the terms or
provisions of the Lease, except as follows (if none, write “None”):                                         .

     7. All work and tenant improvements required by the Lease to be completed has been
completed in the manner and in accordance with the terms, conditions and covenants set forth
in the
Lease to the satisfaction of Tenant and have been accepted by Tenant without exception, and no
payments are required to be made to Tenant in connection therewith. All tenant improvements
constructed by or for Tenant under the terms of the Lease are, as of the date hereof, owned by
Landlord (and are subject to Landlord’s right to require such tenant improvements be removed
at
the expiration or earlier termination of the Lease in accordance with the terms of the Lease).

     8. Tenant has accepted the Premises and is in full and complete possession thereof.

     9. Tenant has not assigned, sublet, or encumbered its interest in the Lease, except as
follows:                                                                         .

     10. Tenant has performed no alterations or works of improvement upon the Premises
for which any contractor, workman or supplier is still unpaid or for which any mechanic or
materialman may be entitled to file a lien against the Premises.

     11. Tenant claims no offsets, set-offs, rebates, concessions, abatements, “free rent” or
defenses to the enforcement of the agreements, terms, covenants or conditions of the Lease,
including, without limitation, with respect to any base rent, percentage rent, additional
rent, or other
amount payable under the terms of the Lease. No rent under the Lease has been paid in advance
of
one (1) month and/or other than as is currently due, and there exists no credits or allowances
to
which Tenant is entitled.

 

 

     12. Neither Landlord nor Tenant is in default in the performance or observance of any
of its obligations under the Lease, and no event has occurred and no conditions exist that,
with the
giving of notice or the passage of time, or both, would constitute a default under the terms
of the
Lease.

     13. Tenant has no option to renew, extend or expand the Lease, or any rights of first
refusal or any other rights to lease any other space in, or to purchase all or any part of,
the Property,
except as follows:                                                             .

     14. The Tenant has not at any time since the commencement of the Lease and does not
presently use the Premises and/or any portion of the Property for the generation, manufacture,
refining, transportation, treatment, storage or disposal of any hazardous substances or
hazardous
wastes for any purpose which poses a substantial risk of imminent damage to public health or
safety
or to the environment.

     15. No fire, earthquake, flood or other casualty has occurred on the Premises and caused
substantial damage to the Premises, and Tenant has no notice of any planned or potential
condemnation of the Property or any part thereof.

     16. There are no actions, voluntary or otherwise, pending or, to the best of Tenant’s
knowledge, threatened against Tenant under the bankruptcy, reorganization or similar laws of
the
United States or any state thereof.

     17. Tenant has no notice of any prior assignment, hypothecation or pledge of the Lease
or the rents due hereunder.

     18. Notwithstanding any term or provision of the Lease, upon foreclosure by Lender
under a deed of trust, or deed-in-lieu thereof, any environmental/hazardous materials
indemnity
and/or reimbursement provisions made by Landlord in favor of Tenant under the Lease shall not
be
enforceable against Lender and/or the purchaser at a foreclosure.

     Tenant understands that Purchaser (or its successor or assign) or Lender will rely upon this
certificate in deciding whether to purchase the Real Property or fund a loan, as the case may be.
Tenant agrees that this certificate shall be binding upon the Tenant and its successors and
assigns, or heirs and personal representatives, as applicable, and shall inure to the benefit of
Landlord and Lender or Purchaser (or its successor or assign), as the case may be.

	 	 	 	 	 	 	 	 	 	 	 
	Dated:	 	 	 	 	 	“Tenant”	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	[Printed Name and Title]	 	 

 

 

EXHIBIT A

LEASE INCLUDING ALL AMENDMENTS THERETO 

 

 

FIRST AMENDMENT TO LEASE

First amendment to lease dated for reference purposes January 1, 2002 between S.I. Hahn, LLC, a
California Limited Partnership as Lessor and Mellanox Technologies, Inc., a California Corporation
as Tenant for the premises located at 2900-2902 Stender Way in the City of Santa Clara, County of
Santa Clara.

Tenant and Landlord hereby amend the above referenced agreement as follows:

	 	1.	 	The Term of the lease shall be extended to March 31, 2009.
	 
	 	2.	 	Rent shall be amended as follows:

	 	a.	 	April 1, 2004 to March 31, 2005 $29,750 per month
	 
	 	b.	 	April 1, 2005 to March 31, 2006 $30,940 per month
	 
	 	c.	 	April 1, 2006 to March 31, 2007 $32,130 per month
	 
	 	d.	 	April 1, 2007 to March 31, 2008 $33,320 per month

	 
	 	e.	 	April 1, 2008 to March 31, 2009 $34,510 per month

IN WITNESS WHEREOF, the parties have executed this Lease Amendment as of the date set forth below:

	 	 	 	 	 	 	 	 	 
	LANDLORD	 	 	 	TENANT
	 
	 	 	 	 	 	 	 	 
	SI HAHN LLC,	 	 	 	MELLANOX TECHNOLOGIES, INC.,
	A California limited liability company	 	 	 	A California corporation
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Sang Hahn
	 	 	 	By:
	 	/s/ E. Waldman
	 

	 	 
	 	 	 	 	 	 
	 

	 	Sang Hahn	 	 	 	 	 	 
	Title:

	 	Manager
	 	 	 	Title:
	 	CEO
	 
	 	 	 	 	 	 	 	 
	Date:

	 	March 31, 2004
	 	 	 	Date:
	 	March 31, 2004

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]