LEASE TERMINATION AND SETTLEMENT AGREEMENT
1. PARTIES AND DEFINED TERMS
This Lease Termination and Settlement Agreement ("Agreement") is entered into as of December , 2000 by and
among SOBRATO INTERESTS II, a California limited partnership ("Sobrato"), and ARDENWOOD
CORPORATE PARK ASSOCIATES, a California limited partnership ("Ardenwood") (with both Sobrato and
Ardenwood being collectively referred to in this Agreement as "Landlord") and NETWORK EQUIPMENT
TECHNOLOGIES, INC., a Delaware corporation ("Tenant").
1.2 As used in this Agreement, the following terms shall have the meanings given in this Section 1.2.
"Claim(s)" shall mean any past, present, or future, fixed or contingent, matured or unmatured, liquidated or
unliquidated, claims, causes of actions, cross-claims, liabilities, rights, demands (including letter-demands, notices,
or inquiries from any entity), penalties, assessments, damages, requests, suits, lawsuits, costs (including attorneys'
fees and expenses), actions, administrative proceedings, or orders, of whatever nature, character, type, or
description, whenever and however occurring, whether at law or in equity, and whether sounding in tort or
contract, or any statutory or common law claim or remedy of any type.
(b) "Dispute" means the dispute between Landlord and Tenant relating to moisture Tenant has experienced in the
Existing Buildings, resulting in damage to certain of the improvements within the Existing Buildings. The essence of
the Dispute is: Tenant contends these moisture problems are the result of structural defects or deficiencies in the
Existing Buildings for which Landlord is responsible, and Landlord denies this to be the case. Due to this Dispute,
Landlord and Tenant previously have been unable to agree upon who is responsible for the repair to the Existing
Buildings to resolve and cure the moisture problems.
(c) "EB-1," "EB-2" and "EB-3" mean, respectively, the three Existing Buildings which are known and addressed
as 6500 and 6530 Paseo