Notice of Intent to Sublet or Terminate Aircraft Lease – Terayon Communication Systems and GE Commercial Finance

Summary

Terayon Communication Systems notifies GE Commercial Finance that it intends to either sublet its leased 1997 Bombardier Challenger 604 aircraft or exercise its early termination rights under their existing Aircraft Lease Agreement. Terayon is actively listing the aircraft for sale or lease and will update GE Commercial Finance on any developments. This notice does not immediately terminate the lease but signals Terayon's intent to pursue one of the options allowed under the agreement.

EX-10.28 7 f97170exv10w28.txt EXHIBIT 10.28 Exhibit 10.28 Terayon Communication Systems 4988 Great America Parkway Santa Clara, CA 94054 March 12, 2004 Mr. Mike Reinhart GE Commercial Finance 10900 NE 4th Street, Suite 500 Bellevue, WA 98004 RE: Aircraft Lease Agreement (the "Agreement") dated February 8, 2002 between General Electric Capital Corporation ("GECC") and Terayon Communication Systems, Inc. ("Terayon") Dear Mike: Terayon currently leases a 1997 Bombardier Challenger 604 (the "Aircraft") from GECC under the above referenced Agreement. Notwithstanding any prior communications, please be advised that it is now Terayon's intent to either pursue a sublet of the Aircraft under Section 8 of the Agreement or to exercise its early termination rights under Section 17 of the Agreement sometime in the future. To that end, effective immediately Terayon is listing the Aircraft as available for sale or lease to the market. We will keep you apprised of our progress in these efforts. Sincerely, /s/Arthur T. Taylor Arthur T. Taylor SVP, Chief Financial Officer