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Exhibit 10.2  


 
 

OFFICE LEASE    
    
    between    
    
    16501 Ventura, LLC
  A Nevada limited liability Company
  (Landlord)    
    
    and    
    
    Deja Foods, Inc.
  A Nevada
Corporation
  (Tenant)    
    








   TABLE OF CONTENTS  


 OFFICE LEASE  



	Article
 
	 	Title
 
	 	Page

	

1	
 	

Definitions	
 	

2
	

2	
 	

Premises	
 	

3
	

3	
 	

Term	
 	

3
	

4	
 	

Rental	
 	

4
	

5	
 	

Security Deposit	
 	

8
	

6	
 	

Use of Premises	
 	

8
	

7	
 	

Utilities and Services	
 	

10
	

8	
 	

Maintenance and Repairs	
 	

12
	

9	
 	

Alterations, Additions and Improvements	
 	

12
	

10	
 	

Indemnification and Insurance	
 	

14
	

11	
 	

Damage or Destruction	
 	

16
	

12	
 	

Condemnation	
 	

17
	

13	
 	

Relocation	
 	

17
	

14	
 	

Assignment and Subletting	
 	

17
	

15	
 	

Default and Remedies	
 	

20
	

16	
 	

Attorneys' Fees; Costs of Suits	
 	

23
	

17	
 	

Subordination and Attornment	
 	

23
	

18	
 	

Quiet Enjoyment	
 	

24
	

19	
 	

Rules and Regulations	
 	

24
	

20	
 	

Estoppel Certificates	
 	

24
	

21	
 	

Entry by Landlord	
 	

25
	

22	
 	

Landlord's Lease Undertakings-Exculpation from Personal Liability; Transfer of Landlord's Interest	
 	

26
	

23	
 	

Holdover Tenancy	
 	

26
	

24	
 	

Notices	
 	

26
	

25	
 	

Brokers	
 	

27
	

26	
 	

Electronic Services	
 	

27
	

27	
 	

Parking	
 	

29
	

28	
 	

Miscellaneous	
 	

30
	
EXHIBITS
	

Exhibit A	
 	

Floor Plan	
 	

 
	

Exhibit B	
 	

Work Letter	
 	

 
	

Exhibit C	
 	

Rules and Regulations	
 	

 
	

Exhibit D	
 	

Personal Guarantee	
 	

 




1







 
OFFICE LEASE  


        THIS OFFICE LEASE ("Lease"), dated July 6, 2004, is made and entered into by and between 16501 Ventura, LLC, a California limited liability company
("Landlord"), and Deja Foods, Inc., a Nevada corporation ("Tenant"), upon the following terms and conditions: 


ARTICLE I—DEFINITIONS  


        Unless the context otherwise specifies or requires, the following terms shall have the meanings specified herein; 


        1.01    Building.    The term "Building" shall mean that certain office buildings located at
16501 Ventura Boulevard, Encino, California commonly known as "Encino Executive Plaza" together with any related land, improvements, parking facilities, common areas, driveways, sidewalks and
landscaping. 


        1.02    Premises.    The term "Premises" shall mean Suite 609 in the "Encino Executive Plaza",
as more particularly outlined on the drawing attached hereto as Exhibit A and incorporated herein by reference. As used herein, "Premises" shall not include any storage area in the Building,
which shall be leased or rented pursuant to a separate agreement. 


        1.03    Rentable Area of the Premises.    The term "Rentable Area of the Premises" shall mean
approximately 2,233 rentable square feet, which Landlord and Tenant have stipulated as the Rentable Areas of the Premises. Tenant acknowledges that the Rentable Areas of the Premises includes the
usable area, without deduction for columns or projections, multiplied by a load factor to reflect a share of certain areas, which may include lobbies, corridors, mechanical, utility, Janitorial,
boiler and service rooms and closets, restrooms and other public common and service areas of the building or in accordance to the 1996 BOMA Standard of Measurement. 


        1.04    Lease Term.    The term "Lease Term" shall mean the period between the Commencement
Date and the Expiration Date (as such terms are hereinafter defined), unless sooner terminated as otherwise provided in this Lease. 


        1.05    Commencement Date.    Subject to adjustment as provided in Article 3, the term
"Commencement Date" shall mean later of September 1, 2004. 



        1.06    Expiration Date.    Subject to adjustment as provided in Article 3, the term
"Expiration Date" shall mean August 31, 2009. 


        1.07    Base Monthly Rent.    The term "Base Monthly Rent" shall mean as follows: 



	Months
 
	 	Payment
	 	Rate (Approximate)

	1-4	 	Free	 	 
	5-12	 	$4,689.30	 	$2.10 per sq. ft.
	13-24	 	$4,829.98	 	$2.16 per sq. ft.
	25-36	 	$4,974.88	 	$2.22 per sq. ft.
	37-48	 	$5,124.12	 	$2.28 per sq. ft.
	49-60	 	$5,277.85	 	$2.34 per sq. ft.






        There
shall be no pass-through to the Tenant for the duration of the lease, 


        1.08    Tenant's Percentage
Share.    The term "Tenant's Percentage Share" shall mean () percent with respect to increase in Property Taxes and Operating
Expenses (as such terms are hereinafter defined). Landlord may reasonably re-determine Tenant's Percentage Share from time to time to reflect reconfigurations, additions or modifications
to the Building. 


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        1.09    Security Deposit.    Tenant previously deposited One Thousand Five Hundred Ninety
Eight and 40/100 ($1,598.40). Tenant shall pay additional Three Thousand Six Hundred Seventy Nine and 45/00 ($3679.45) Dollars, to bring up the Security Deposit total to $5,277.85. 



        1.10    Tenant's Permitted Use.    The term "Tenant's Permitted Use" shall mean General Office
and no other use. 


        1.11    Business Hours.    The term "Business Hours" shall mean the hours of 8:00 A.M.
to 6:00 P.M., Monday through Friday (federal and state holidays excepted) and 9:00 A.M. to 1:00 P.M. on Saturday. Holidays are defined as the following: New Years Day, President's
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. 



        1.12    Landlord's Address For Notices.    The term "Landlord's Address for Notices" shall
mean 16501 Ventura Boulevard, Encino, California 91436, Attn: Jamison Properties, Inc. 


        1.13    Tenant's Address for Notices.    The term "Tenant's Address for Notices" shall mean
16501 Ventura Boulevard, Suite 608, Encino, California 91436. 


        1.14    Broker.    None. 


        1.15    Guarantor.    See Exhibit "D." 


        1.16    Tenant's Parking Stalls.    The term "Tenant's Parking Stalls" shall mean two
(2) parking stalls for each 1,000 square feet of office leased in the Building at the prevalling rates. The prevalling rates shall be subject to change from time to time no greater than 3% per
year. 


ARTICLE II—PREMISES  


        2.01    Lease of Premises.    Landlord hereby leases the Premises to Tenant, and Tenant hereby
leases the Premises from Landlord, upon all of the terms, covenants and conditions contained in this Lease. On the Commencement Date described herein, Landlord shall deliver the Premises to Tenant in
substantial conformance with the Work Letter Agreement attached hereto as Exhibit B. 



        2.02    Acceptance of Premises.    Prior to Tenant's taking possession of the Premises,
Landlord or its designee and Tenant will walk the Premises for the purpose of reviewing the condition of the Premises (and the condition of completion and workmanship of any tenant improvements which
Landlord is required to construct in the Premises pursuant to this Lease); after such review, Tenant shall execute a Suite Acceptance Letter, in the form of Exhibit B attached hereto, accepting
the Premises. Except as is expressly set forth in this Section 2.02 or the Work Letter Agreement attached hereto, if any, or as may be expressly set forth in Suite Acceptance Letter, Tenant
agrees to accept the Premises in its "as is" said physical condition subject to punch list items without any agreements, representations, understandings or obligations on the part of Landlord to
perform any alterations, repairs or improvements (or to provide any allowance for same). 


ARTICLE III—TERM  


        3.01 Except
as otherwise provided in this Lease, the Lease Term shall be for the period described in Section 1.04 of this Lease, commencing on the Commencement Date
described in Section 1.05 of this Lease and ending on the Expiration Date described in Section 1.06 of this Lease; provided, however, that, if, for any reason, Landlord is unable to
deliver possession of the Premises on the date described in Section 1.05 of this Lease, Landlord shall not be liable for any damage caused thereby, nor shall the Lease be void or voidable, but,
rather, the Lease Term shall commence upon, and the Commencement Date shall be the date that possession of the Premises is so tendered to Tenant (except for Tenant-caused delays which shall not be
deemed to delay commencement of the Lease Term), and, unless Landlord elects otherwise, the Expiration Date described in Section 1.06 of this Lease shall be extended by an equal number of days. 


3







 
ARTICLE IV—RENTAL  


        4.01    Definitions.    As used herein, 



        (A)  "Base
Year" shall mean calendar year 2004. 


        (B)  "Property
Taxes" shall mean the aggregate amount of all real estate taxes, assessments (whether they be general
as special), sewer rents and charges, transit taxes, taxes based upon the receipt of rent and any other federal state or local governmental charge, general, special, ordinary or extraordinary (but not
including income or franchise taxes, capital stock, inheritance, estate, gift, or any other taxes imposed upon or measured by Landlord's gross income or profits, unless the same shall be imposed in
lieu of real estate taxes or other ad valorem taxes), which Landlord shall pay or become obligated to pay in connection with the Building or any part thereof, Property Taxes shall also include all
fees and costs, including attorneys' fees, appraisals and consultants fees, incurred by Landlord in seeking to obtain a reassessment, reduction of, or a limit on the increase in any Property Taxes
regardless of whether any reduction or limitation is obtained. Property Taxes for any calendar year shall be Property Taxes which are due for payment or paid in such year, rather than Property Taxes
which are assessed or become a lien during such year. Property Taxes shall include any tax, assessment, levy, imposition or charge imposed upon Landlord and measured by or based in whole or in part
upon the Building or the rents or other income from the Building to the extent that such items would be payable if the Building was the only property of Landlord subject to same and the income
received by Landlord from the Building was the only income of Landlord. Property Taxes shall also include any personal property taxes imposed upon the furniture, fixtures, machinery, equipment,
apparatus, systems and appurtenances of Landlord used in connection with the Building. 


        (C)  "Operating
Expenses" shall mean all costs, fees, disbursements and expenses paid or incurred by or on behalf of
Landlord in the operation, ownership, maintenance, management, replacement and repair of the Building (excluding Property Taxes) including without limitation. 



          (i)  Premiums
for property, earthquake, casualty, liability, rent interruption or other types of insurance carried
by Landlord. 


         (ii)  Salaries,
wages and other amounts paid or payable for personnel including the Building manager,
superintendent, operation and maintenance staff, and other employees of Landlord involved in the maintenance and operation of the Building, including contributions and premiums towards fringe
benefits, unemployment, disability and worker's compensation insurance, pension plan contributions and similar premiums and contributions and the total charges of any independent contractors or
property managers engaged in the operation, repair, care, maintenance and cleaning of any portion of the Building. 


        (iii)  Cleaning
expenses, including without limitation janitorial services, window cleaning and garbage and refuse
removal. 


        (iv)  Landscaping
expenses, including without limitation irrigating, trimming, mowing, fertilizing seeding, and
replacing plants. 


         (v)  Heating,
ventilating, air conditioning and steam/utilities expenses, including fuel, gas, electricity, water,
sewer, telephone, and other services. 


        (vi)  Subject
to the provisions of Section 4.01(C)(vii) below, the cost of maintaining, operating,
repairing and replacing components of equipment or machinery, including without limitation heating, refrigeration, ventilation, electrical, plumbing, mechanical, elevator, escalator, sprinklers,
fire/life safety, security and energy management systems, including service contracts, maintenance contracts, supplies and parts. 




4







 





       (vii)  Other
Items of repair or maintenance of elements of the Building. 


      (viii)  The
costs of policing, security and supervision of the Building. 


        (ix)  Fair
market rental and other costs with respect to the management office for the Building. 


         (x)  The
cost of the rental of any machinery or equipment and the cost of supplies used in the maintenance and
operation of the Building. 


        (xi)  Audit
fees and the cost of accounting services incurred in the preparation of statements referred to in this
lease and financial statements, and in the computation of the rents and charges payable by tenants of the Building. 


       (xii)  Capital
expenditures (a) made primarily to reduce Operating Expenses, or to comply with any laws of
other governmental requirements, or (b) for replacements (as opposed to additions or new improvements) of non structural items located in the common areas of the property required to keep such
areas in good condition; provided, all such permitted capital expenditures (together with reasonable financing charges) shall be amortized for purposes of this Lease over the shorter of
(i) their useful lives, (ii) the period during which the reasonably estimated savings in Operating Expenses equals the expenditures, or (iii) three
(3) years. 


      (xiii)  Legal
fees and expenses. 


      (xiv)  Payments
under any easement, operating agreement, declaration, restrictive covenant, or instrument pertaining
to the sharing of costs in any planned development. 


       (xv)  A
fee for the administration and management of the Building as reasonably determined by Landlord from time to
time. 




        Operating
Expenses shall not include costs of alteration of the premises of tenants of the Building, depreciation charges, interest and principal payments on
mortgages, ground rental payments, real estate brokerage and leasing commissions, expenses incurred in enforcing obligations of tenants of the Building, salaries and other compensation of executive
officers of the managing agent of the Building senior to the Building manager, costs of any special service provided to any one tenant of the Building but not to tenants of the Building generally, and
costs of marketing or advertising the Building. 


        (D)  If
the Building does not have ninety five percent (95%) occupancy during an entire calendar year, including the
Base Year, then the variable cost component of "Property Taxes" and "Operating Expenses" shall be equitably adjusted so that the total amount of Property Taxes and Operating Expenses equals the total
amount which would have been paid or incurred by Landlord had the Building been ninety five percent (95%) occupied for the entire calendar year. In the event shall Landlord be entitled to receive from
Tenant and any other tenants in the Building an aggregate amount in excess of actual Property Taxes and Operating Expenses as a result of the foregoing provision. 



5







 





        4.02    Base Rent.    



        (A)  During
the Lease Term, Tenant shall pay to Landlord as rental for the Premises the Base Rent described in Section 1.07 above, subject to the following annual
adjustments (herein called the "Rent Adjustments"): 


        (B)  Annual
Adjustments of Base Rent. (see Section 1.07) 



        (a)   Tax
and Operating Expense Adjustment. During each calendar year, the Base-Rent payable by Tenant to
Landlord, shall be increased by (collectively, the "Tax and Operating Expense Adjustment"): (i) Tenant's Percentage Share of the dollar increase, if any, in Property Taxes for such year over
Property Taxes for the Base Year: and (ii) Tenant's Percentage Share of the dollar increase, if any, in any category of Operating Expenses paid or incurred by Landlord during such year over the
respective category of Operating Expenses paid or incurred by Landlord during the Base Year. A decrease in Property Taxes or any category of Operating Expenses below the Base Year amounts shall not
decrease the amount of the Base Rent due hereunder or give rise to a credit in favor of Tenant. 





        4.03    Tax and Operating Expense Adjustment Procedures
Estimates.    The Tax and Operating Expense Adjustment specified in Section 4.02(B)(a) shall be determined and paid as
follows: 



        (A)  During
each calendar year subsequent to the Base Year, Landlord shall give Tenant written notice of its
estimate of any increased amounts payable under Section 4.02(B)(a) for that calendar year. On or before the first day of each calendar month during the calendar year, Tenant shall pay to
Landlord one twelfth (1/12th) of such estimated amounts; provided, however, that, not more often than quarterly, Landlord may, by written notice to Tenant, revise its estimate for such year, and
subsequent payments by Tenant for such year shall be based upon such revised estimate. 


        (B)  Within
one hundred twenty (120) days after the close of each calendar year or as soon thereafter as is
practicable, Landlord shall deliver to Tenant a statement of that year's Property Taxes and Operating Expenses, and the actual Tax and Operating Expense Adjustment to be made pursuant to
Section 4.02(B)(a) for such calendar year, as determined by Landlord (the "Landlord's Statement") and such Landlord's Statement shall be binding upon Tenant, except as provided in
Section 4.04 below. If the amount of the actual Tax and Operating Expense Adjustment is more than the estimated payments for such calendar year made by Tenant, Tenant shall pay the deficiency
to Landlord upon receipt of Landlord's Statement. If the amount of the actual Tax and Operating Expense Adjustment is less than the estimated payments for such calendar year made by Tenant, any excess
shall be credited against Rent (as hereinafter defined) next payable by Tenant under this lease or, if the Lease Term has expired, any excess shall be paid to Tenant. No delay in providing the
statement described in this subparagraph (B) shall act as a waiver of Landlord's right to payment under Section 4.02(B)(a) above. 


        (C)  If
this Lease shall terminate on a day other than the end of a calendar year, the amount of the Tax and
Operating Expense Adjustment to be paid pursuant to Section 4.02(B)(a) that is applicable to the calendar year in which such termination occurs shall be prorated on the basis of the number of
days from January 1 of the calendar year to the termination date bears to 365. The termination of this Lease shall not affect the obligations of Landlord and Tenant pursuant to
Section 4.03(B) to be performed after such termination. 



6







 





        4.04    Review of Landlord's
Statement.    Provided that Tenant is not then in default beyond any applicable cure period of its obligations to pay Base
Rent, additional rent described in Section 4.02(B), or any other payments required to be made by it under this Lease and provided further that Tenant strictly complies with the provisions of
this Section 4.04, Tenant shall have the right, once each calendar year, to reasonably review supporting data for any portion of a Landlord's Statement (provided, however, Tenant may not have
an audit right to all documentation relating to Building operations as this would far exceed the relevant information necessary to properly document a pass through billing statement, but real estate
tax statements, and information on utilities, repairs, maintenance and insurance will be available), in accordance with the following procedure: 



        (A)  Tenant
shall, within ten (10) business days after any such Landlord's Statement is delivered, deliver a
written notice to Landlord specifying the portions of the Landlord's Statement that are claimed to be incorrect, and Tenant shall simultaneously pay to Landlord all amounts due from Tenant to Landlord
as specified in the Landlord's Statement. Except as expressly set forth in subsection (C) below, in no event shall Tenant be entitled to withhold, deduct, or offset any monetary obligation of
Tenant to Landlord under the Lease (including without limitation, Tenant's obligation to make all payments of Base Rent and all payments of Tenant's Tax and Operating Expense Adjustment) pending the
completion of and regardless of the results of any review of records under this Section 4.04. The right of Tenant under this Section 4.04 may only be exercised once for any Landlord's
Statement, and if Tenant fails to meet any of the above conditions as a prerequisite to the exercise of such right, the right of Tenant under this Section 4.04 for a particular Landlord's
Statement shall be deemed waived. 


        (B)  Tenant
acknowledges that Landlord maintains its records for the Building at Landlord's manager's corporate
offices presently located at the address set forth in Section 1.12 and Tenant agrees that any review of records under this Section 4.04 shall be at the sole expense of Tenant and shall
be conducted by an independent firm of certified public accountants of national standing. Tenant acknowledges and agrees that any records reviewed under this Section 4.04 constitute
confidential information of Landlord, which shall not be disclosed to anyone other than the accountants performing the review and the principals of Tenant who receive the results of the review. The
disclosure of such information to any other person, whether or not caused by the conduct of Tenant, shall constitute a material breach of this Lease. 


        (C)  Any
errors disclosed by the review shall be promptly corrected by Landlord, provided, however, that if Landlord
disagrees with any such claimed errors, Landlord shall have the right to cause another
review to be made by an independent firm of certified public accountants of national standing. In the event of a disagreement between the two accounting firms, the review that discloses the lease
amount of deviation from the Landlord's Statement shall be deemed to be correct. In the event that the results of the review of records (taking into account, if applicable, the results of any
additional review caused by Landlord) reveal that Tenant has overpaid obligations for a preceding period, the amount of such overpayment shall be credited against Tenant's subsequent Installment
obligations to pay the estimated Tax and Operating Expense Adjustment. In the event that such results show that Tenant has underpaid its obligations for a preceding period, Tenant shall be liable for
Landlord's actual accounting fees, and the amount of such underpayment shall be paid by Tenant to Landlord with the next succeeding installment obligation of estimated Tax and Operating Expense
Adjustment. 



7









   
        4.05    Payment.    Concurrently with the execution hereof, Tenant shall pay Landlord Base
Rent for the first calendar month of the Lease Term. Thereafter the Base Rent described in Section 1.07, as adjusted in accordance with Section 4.02, shall be payable in advance on the
first day of each calendar month. If the Commencement Date is other than the first day of a calendar month, the prepaid Base Rent for such partial month shall be prorated in the proportion that the
number of days this Lease is in effect during such partial month bears to the total number of days in the calendar month. All Rent, and all other amounts payable to Landlord by Tenant pursuant to the
provisions of this Lease, shall be paid to Landlord, without notice, demand, abatement, deduction or offset, in lawful money of the United States at Landlord's office in the Building or to such other
person or at such other place as Landlord may designate from time to time by written notice given to Tenant. No payment by Tenant or receipt by Landlord of a lessor amount than the correct Rent due
hereunder shall be deemed to be other than a payment on account; nor shall any endorsement or statement on any check or any letter accompanying any check or payment be deemed to effect or evidence on
accord and satisfaction; and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance or pursue any other remedy in this Lease or at law or in equity
provided. 


        4.06    Late Charge; Interest.    Tenant acknowledges that the late payment of Base Rent or
any other amounts payable by Tenant to Landlord hereunder (all of which shall constitute additional rental to the same extent as Base Rent) will cause Landlord to incur administrative costs and other
damages, the exact amount of which would be impracticable or extremely difficult to ascertain. Landlord and Tenant agree that if Landlord does not receive any such payment on or before ten
(10) days after the date the payment is due. Tenant shall pay to Landlord, as additional rent, (a) a late charge equal to five percent (5%) of the overdue amount to cover such additional
administrative costs; and (b) interest on the delinquent amounts at the lesser of the maximum rate permitted by law if any or eight percent (8%) per annum from the date due to the date paid. 


        4.07    Additional Rent.    For purposes of this Lease, all amounts payable by Tenant to
Landlord pursuant to this Lease, whether or not denominated as such, shall constitute Base Rent. Any amounts due Landlord shall sometimes be referred to in this Lease as "Rent". 



        4.08    Additional Taxes.    Notwithstanding anything in Section 4.01(B) to the
contrary, Tenant shall reimburse Landlord upon demand for any and all taxes payable by or imposed upon Landlord upon or with respect to: any fixtures or personal property located in the Premises; any
leasehold improvements made in or to the Premises by or for Tenant; the Rent payable hereunder, including, without limitation, any gross receipts tax, license fee or excise tax levied by any
governmental authority; the possession, leasing, operation, management, maintenance, alteration, repair use or occupancy of any portion of the Premises (including without limitation any applicable
possessory interest taxes); or this transaction or any document to which Tenant is a party creating or transferring an interest or an estate in the Premises. 


ARTICLE V—SECURITY DEPOSIT  


        5.01 Upon
the execution of this Lease, Tenant shall deposit with Landlord the Security Deposit described in Section 1.09 above. The Security Deposit is made by Tenant
to secure the faithful performance of all the terms, covenants and conditions of this Lease to be performed by the Tenant. If Tenant shall default with respect to any covenant or provision hereof,
Landlord may use, apply or retain all or any portion of the Security Deposit to cure such default or to compensate Landlord for any loss or damage which Landlord may suffer thereby. If Landlord so
uses or applies all or any portion of the Security Deposit. Tenant shall immediately upon written demand deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the full
amount hereinabove stated. Landlord shall not be required to keep the Security Deposit separate from its general accounts and Tenant shall not be entitled to interest on the Security Deposit. Within
thirty (30) days after the expiration of the Lease Term and the vacation of the Premises by Tenant, the Security Deposit, or such part as has not been applied to cure the default, shall be
returned to Tenant. 


ARTICLE VI—USE OF PREMISES  


        6.01    Tenants Permitted Use.    Tenant shall use the Premises only for Tenant's Permitted
Use as set forth in Section 1.10 above and shall not use or permit the Premises to be used for any other purpose. 


8







 

Tenant
shall, at its sole cost and expense, obtain all governmental licenses and permits required to allow Tenant to conduct Tenant's Permitted Use, Landlord disclaims any warranty that the Premises
are suitable for Tenant's use and Tenant acknowledges that it has had a full opportunity to make its own determination in this regard. 


        6.02    Compliance With Laws and Other Requirements.    



        (A)  Tenant
shall cause the Premises to comply in all material respects with all laws, ordinances, regulations and directives of any governmental authority having
jurisdiction including, without limitation, any certificate of occupancy and any law, ordinance, regulation, covenant, condition or restriction affecting the Building or the Premises which in the
future may become applicable to the Premises (collectively "Applicable Laws"). 


        (B)  Tenant
shall not use the Premises, or permit the Premises to be used, in any manner which: (a) violates any Applicable Law; (b) causes or is reasonably
likely to cause damage to the Building or the Premises; (c) violates a requirement or condition of any fire and extended insurance policy covering the Building and/or the Premises, or increases
the cost of such policy; (d) constitutes or is reasonably likely to constitute a nuisance, annoyance or inconvenience to other tenants or occupants of the Building or its equipment, facilities
or systems; (e) interferes with, or is reasonably likely to interfere with, the transmission or reception of microwave, television, radio, telephone or other communication signals by antennae
or other facilities located in the Building; or (f) violates the Rules and Regulations described in Article XIX. 




        6.03    Hazardous Materials.    



        (A)  No
Hazardous Materials, as defined herein, shall be Handled, as also defined herein, upon, about, above or beneath the Premises or any portion of the Building by or on
behalf of Tenant, its subtenants or its assignees, or their respective contractors, clients, officers, directors, employees, agents, or invitees. Any such Hazardous Materials so Handled shall be known
as Tenant's Hazardous Materials. Notwithstanding the foregoing, normal quantities of Tenant's Hazardous Materials customarily used in the conduct of general administrative and executive office
activities (e.g., copier fluids and cleaning supplies) may be Handled at the Premises without Landlord's prior written consent. Tenant's Hazardous Materials shall be Handled at all times in compliance
with the manufacturer's instructions therefor and all applicable Environmental Laws, as defined herein. 


        (B)  Notwithstanding
the obligation of Tenant to indemnify Landlord pursuant to this Lease, Tenant shall, at its sole cost and expense, promptly take all actions required by
any Regulatory Authority, as defined herein, or necessary for Landlord to make full economic use of the Premises or any portion of the Building, which requirements or necessity arises from the
Handling of Tenant's Hazardous Materials upon, about, above or beneath the Premises or any portion of the Building. Such actions shall include, but not be limited to, the investigation of the
environmental condition of the Premises or any portion of the Building, the preparation of any feasibility studies or reports and the performance of any cleanup, remedial, removal or restoration work.
Tenant shall take all actions necessary to restore the Premises or any portion of the Building to the condition existing prior to the introduction of Tenant's Hazardous Materials, notwithstanding any
less stringent standards or remediation allowable under applicable Environmental Laws. Tenant shall nevertheless obtain Landlord's written approval prior to undertaking any actions required by this
Section, which approval shall not be unreasonably withhold so long as such actions would not potentially have a material adverse long-term or short-term effect on the Premises
or any portion of the Building. 


        (C)  Tenant
agrees to execute affidavits, representations, and the like from time to time at Landlord's request stating Tenant's best knowledge and belief regarding the
presence of Hazardous Materials on the Premises. 



9







 




        (D)  "Environmental
Laws" means and includes all now and hereafter existing statutes, laws, ordinances, codes, regulations, rules, rulings, orders, decrees, directives,
policies and requirements by any Regulatory Authority regulating, relating to, or imposing liability or standards of conduct concerning public health and safety or the environment. 


        (E)  "Hazardous
Materials" means: (a) any material or substance: (i) which is defined or becomes defined as a "hazardous substance," "hazardous waste,"
"infectious waste," "chemical mixture or substance." or "air pollutant" under Environmental Laws; (ii) containing petroleum, crude oil or any fraction thereof; (iii) containing
polychlorinated biphenyls (PCB's); (iv) containing asbestos; (v) which is radioactive; (vi) which is infectious; or (b) any other material or substance displaying toxic,
reactive, ignitable or corrosive characteristics, as all such terms are used in their broadest sense, and are defined, or become defined by Environmental Laws; or (c) materials which cause a
nuisance upon or waste to the Premises or any portion of the Building. 


        (F)  "Handle,"
"handle," "Handled," "handled," "Handling," or "handling" shall mean any installation, handling, generation, storage, treatment, use, disposal, discharge,
release, manufacture, refinement, presence, migration, emission, abatement, removal, transportation, or any other activity of any type in connection with or involving Hazardous Materials. 



        (G)  "Regulatory
Authority" shall mean any federal, state or local governmental agency, commission, board or political subdivision. 



ARTICLE VII—UTILITIES AND SERVICES  


        7.01    Building Services.    As long as Tenant is not in monetary default under this Lease,
Landlord agrees to furnish or cause to be furnished to the Premises the following utilities and services, subject to the conditions and standards set forth herein: 



        (A)  Non-attended
automatic elevator service (if the Building has such equipment serving the Premises), in common with Landlord and other tenants and occupants
and their agents and invitees. 


        (B)  During
Business Hours, such air conditioning, heating and ventilation as, in Landlord's reasonable judgment, are required for the comfortable use and occupancy of the
Premises. Landlord may make available to Tenant heating, ventilation or air conditioning in excess of that which Landlord shall be required to provide hereunder upon such conditions as shall be
determined by Landlord from time to
time. Landlord's fee for any such additional heating, ventilation or air conditioning provided to Tenant, to be set by Landlord from time to time will be separate from and in addition to the Tax and
Operating Expenses Adjustment provide in Article IV. (see Addendum 1) 


        (C)  Water
for drinking and rest room purposes. 


        (D)  Reasonable
janitorial and cleaning services, provided that the Premises are used exclusively for office purposes and are kept reasonably in order by Tenant. If the
Premises are not used exclusively as offices, Landlord, at Landlord's sole discretion, may require that the Premises be kept clean and in order by Tenant, at Tenant's expense, to the satisfaction of
Landlord and by persons approved by Landlord; and, in all events, Tenant shall pay to Landlord the cost of removal of Tenant's refuse and rubbish, to the extent that the same exceeds the refuse and
rubbish attendant to normal office usage. 


        (E)  At
all reasonable times, electric current of not less than 3.5 watts per square foot for building standard lighting and fractional horsepower office machines; provided,
however, that (i) without Landlord's consent, Tenant shall not install, or permit the installation, in the Premises of any computers, word processors, electronic data processing equipment or
other type of equipment or machines which will increase Tenant's use of electric current in excess of that which 



10







 




Landlord
is obligated to provide hereunder (provided, however, that the foregoing shall not preclude the use of personal computers or similar office equipment); (ii) if Tenant shall require
electric current which may disrupt the provision of electrical service to other tenants. Landlord may refuse to grant its consent or may condition its consent upon Tenant's payment of the cost of
installing and providing any additional facilities required to furnish such excess power to the Premises and upon the installation in the Premises of electric current meters to measure the amount of
electric current consumed, in which latter event Tenant shall pay for the cost of such motor(s) and the cost of installation, maintenance and repair thereof, as well as for all excess electric current
consumed at the rates charged by the applicable local public utility, plus a reasonable amount to cover the additional expenses incurred by Landlord in keeping account of the electric current so
consumed; and (iii) if Tenant's increased electrical requirements will materially affect the temperature level in the Premises or the Building, Landlord's consent may be conditioned upon
Tenant's requirement to pay such amounts as will be incurred by Landlord to install and operate any machinery or equipment necessary to restore the temperature level to that otherwise required to be
provided by Landlord, including but not limited to the cost of modifications to the air conditioning system, Landlord shall not, in any way, be liable or responsible to Tenant for any loss or damage
or expense which Tenant may incur or sustain if, for any reasons beyond Landlord's reasonable control, either the quantity or character of electric service is changed or is no longer available or
suitable for Tenant's requirements. Tenant covenants that at all times its use of electric current shall never exceed the capacity of the feeders, risers or electrical installations of the Building.
If submetering of electricity in the Building will not be permitted under future laws or regulations, the Rent will then be equitably and periodically adjusted to include an additional payment to
Landlord reflecting the cost to Landlord for furnishing electricity to Tenant in the Premises. 




        Any
amounts which Tenant is required to pay to Landlord pursuant to this Section 7.01 shall be payable upon demand by Landlord and shall constitute additional rent. 


        7.02    Interruption of Services.    Landlord shall not be liable for any failure to furnish,
stoppage of, or interruption in furnishing any of the services or utilities described in Section 7.01, when such failure is caused by accident, breakage, repairs, strikes, lockouts, labor
disputes, labor disturbances, governmental regulation, civil disturbances, acts of war, moratorium or other governmental action, or any other cause beyond Landlord's reasonable control, and, in such
event, Tenant shall not be entitled to any damages nor shall any failure or interruption abate or suspend Tenant's obligation to pay Base Rent and additional rent required under this Lease or
constitute or be construed as a constructive or other eviction of Tenant. Further, in the event any governmental authority or public utility promulgates or revises any law, ordinance, rule or
regulation, or issues mandatory controls or voluntary controls relating to the use or conservation of energy, water, gas, light or electricity, the reduction of automobile or other emissions, or the
provision of any other utility or service, Landlord may take any reasonably appropriate action to comply with such law, ordinance, rule, regulation, mandatory control or voluntary guideline and
Tenant's obligations hereunder shall not be affected by any such action of Landlord. The parties acknowledge that safety and security devices, services and programs provided by Landlord, if any, while
intended to defer crime and ensure safety, may not in given instances prevent theft or other criminal acts, or ensure safety of persons or property. The risk that any safety or security device,
service or program may not be affective, or may malfunction, or be circumvented by a criminal, is assumed by Tenant with respect to Tenant's property and interests, and Tenant shall obtain insurance
coverage to the extent Tenant desires protection against such criminal acts and other losses, as further described in this Lease. Tenant agrees to cooperate in any reasonable safety or security
program developed by Landlord or required by Law. 


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ARTICLE VIII—MAINTENANCE AND REPAIRS  


        8.01    Landlord's Obligations.    Except as provided in Sections 8.02 and 8.03 below,
Landlord shall maintain the Building in reasonable order and repair throughout the Lease Term; provided, however, that Landlord shall not be liable for any failure to make any repairs or to perform
any maintenance unless such failure shall persist for an unreasonable time after written notice of the need for such repairs or maintenance is given to Landlord by Tenant. Except as provided in
Article XI, there shall be no abatement of Rent, nor shall there be any liability of Landlord, by reason of any injury or inconvenience to, or interference with, Tenant's business or operations
arising from the making of, or failure to make, any maintenance or repairs in or to any portion of the Building. 


        8.02    Tenant's Obligations.    During the Lease Term, Tenant shall, at its sole cost and
expense, maintain the Premises in good order and repair (including, without limitation, the carpet,
wall-covering, doors, plumbing and other fixtures, equipment, alterations and improvements, whether installed by Landlord or Tenant). Further, Tenant shall be responsible for, and upon
demand by Landlord shall promptly reimburse Landlord for, any damage to any portion of the Building or the Premises caused by (a) Tenant's activities in the Building or the Premises;
(b) the performance or existence of any alterations, additions or improvements made by Tenant in or to the Premises; (c) the installation, use, operation or movement of Tenant's property
in or about the Building or the Premises; or (d) any act or omission by Tenant or its officers, partners, employees, agents, contractors or invitees. 



        8.03    Landlord's Rights.    Landlord and its contractors shall have the right, at all
reasonable times and upon prior oral or telephonic notice to Tenant at the Premises, other than in the case of any emergency in which case no notice shall be required, to enter upon the Premises to
make any repairs to the Premises or the Building reasonably required or deemed reasonably necessary by Landlord and to erect such equipment, including scaffolding, as is reasonably necessary to effect
such repairs. 


ARTICLE IX—ALTERATIONS, ADDITIONS AND IMPROVEMENTS  



        9.01    Landlord's Consent; Conditions.    Tenant shall not make or permit to be made any
alterations, additions, or improvements in or to the Premises ("Alterations") without the prior written consent of Landlord, which consent, with respect to non-structural alterations,
shall not be unreasonably withheld. Landlord may impose as a condition to making any Alterations such requirements as Landlord in its sole discretion deems necessary or desirable including without
limitation; Tenant's submission to Landlord, for Landlord's prior written approval, of all plans and specifications relating to the Alterations; Landlord's prior written approval of the time or times
when the Alterations are to be performed; Landlord's prior written approval of the contractors and subcontractors performing work in connection with the Alterations; employment of union contractors
and subcontractors who shall not cause labor disharmony; Tenant's receipt of all necessary permits and approvals from all governmental authorities having jurisdiction over the Premises prior to the
construction of the Alterations; Tenant's delivery to Landlord of such bonds and insurance as Landlord shall reasonably require; and Tenant's payment to Landlord of all costs and expenses incurred by
Landlord because of Tenant's Alterations, including but not limited to costs incurred in reviewing the plans and specifications for, and the progress of, the Alterations. Tenant is required to provide
Landlord written notice of whether the Alterations include the Handling of any Hazardous Materials and whether these materials are of a customary and typical nature for industry practices. Upon
completion of the Alterations, Tenant shall provide Landlord with copies of as-built plans. Neither the approval by Landlord of plans and specifications relating to any Alterations nor
Landlord's supervision or monitoring of any Alterations shall constitute any warranty by Landlord to Tenant of the adequacy of the design for Tenant's intended use or the proper performance of the
Alterations. 


        9.02    Performance of Alterations Work.    All work relating to the Alterations shall be
performed in compliance with the plans and specifications approved by Landlord, all applicable laws, ordinances, rules, regulations and directives of all governmental authorities having jurisdiction
(including without 


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limitation
Title 24 of the California Administrative Code) and the requirements of all carriers of Insurance on the Premises and the Building, the Board of Underwriters, Fire Rating Bureau, or similar
organization. All work shall be performed in a diligent, first class manner and so as not to unreasonably interfere with any other tenants or occupants of the Building. All costs incurred by Landlord
relating to the Alterations shall be payable to Landlord by Tenant as additional rent upon demand. No asbestos-containing materials shall be used or incorporated in the Alterations. No
lead-containing surfacing material, solder, or other construction materials or fixtures where the presence of lead might create a condition of exposure not in compliance with Environmental
Laws shall be incorporated in the Alterations. 


        9.03    Liens.    Tenant shall pay when due all costs for work performed and materials
supplied to the Premises. Tenant shall keep Landlord, the Premises and the Building free from all liens, stop notices and violation notices relating to the Alterations or any other work performed for,
materials furnished to or obligations incurred by or for Tenant and Tenant shall protect, indemnify, hold harmless and defend Landlord, the Premises and the Building of and from any and all loss,
cost, damage, liability and expense, including attorneys' fees, arising out of or related to any such liens or notices. Further, Tenant shall give Landlord not less than seven (7) business days
prior written notice before commencing any Alterations in or about the Premises to permit Landlord to post appropriate notices of non-responsibility. Tenant shall also secure, prior to
commencing any Alterations, at Tenant's sole expense, a completion and lien indemnity bond satisfactory to Landlord for such work. During the progress of such work, Tenant shall, upon Landlord's
request, furnish Landlord with sworn contractor's statements and lien waivers covering all work theretofore performed. Tenant shall satisfy or otherwise discharge all liens, stop notices or other
claims or encumbrances within ten (10) days after Landlord notifies Tenant in writing that any such lien, stop notice, claim or encumbrance has been filed. If Tenant fails to pay and remove
such lien, claim or encumbrance within such ten (10) days, Landlord, at its election, may pay and satisfy the same and in such event the sums so paid by Landlord, with interest from the date of
payment at the rate set forth in Section 4.06 hereof for amounts owed Landlord by Tenant shall be deemed to be additional rent due and payable by Tenant at once without notice or demand. 


        9.04    Lease Termination.    Except as provided in this Section 9.04, upon expiration
or earlier termination of this Lease Tenant shall surrender the Premises to Landlord in the same condition as existed on the date Tenant first occupied the Premises, (whether pursuant to this Lease or
an earlier lease), subject to reasonable wear and tear. All Alterations shall become a part of the Premises and shall become the property of Landlord upon the expiration or earlier termination of this
Lease, unless Landlord shall, by written notice given to Tenant, require Tenant to remove some or all of Tenant's Alterations, in which event Tenant shall promptly remove the designated Alterations
and shall promptly repair any resulting damage, all at Tenant's sole expense. All business and trade fixtures, machinery and equipment, furniture, movable partitions and items of personal property
owned by Tenant or installed by Tenant at its expense in the Premises shall be and remain the property of Tenant; upon the expiration or earlier termination of this Lease, Tenant shall, at its sole
expense, remove all such items and repair any damage to the Premises of the Building caused by such removal. If Tenant fails to remove any such
items or repair such damage promptly after the expiration or earlier termination of the Lease, Landlord may, but need not, do so with no liability to Tenant, and Tenant shall pay Landlord the cost
thereof upon demand. Notwithstanding the foregoing to the contrary, in the event that Landlord gives its consent, pursuant to the provisions of Section 9.01 of this Lease, to allow Tenant to
make an Alteration in the Premises, Landlord agrees, upon Tenant's written request, to notify Tenant in writing at the time of the giving of such consent whether Landlord will require Tenant, at
Tenant's cost, to remove such Alteration at the end of the Lease Term. 


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   ARTICLE X—INDEMNIFICATION AND INSURANCE  


        10.01    Indemnification.    



        (A)  Tenant
agrees to protect, indemnify, hold harmless and defend Landlord and any Mortgages (except outside of Tenant's premises), as defined herein, and each of their
respective partners, directors, officers, agents and employees, successors and assigns, (except to the extent of the losses described below are caused by the gross negligence of Landlord, its agents
and employees), from and against: 



          (i)  any
and all loss, cost, damage, liability or expense as incurred (including but not limited to reasonable attorneys' fees and legal costs) arising out of or related to
any claim, suit or judgment brought by or in favor of any person or persons for damage, loss or expense due to, but not limited to, bodily injury, including death, or property damage sustained by such
person or persons which arises out of, is occasioned by or is in any way attributable to the use or occupancy of the Premises or any portion of the Building by Tenant or the acts or omission of Tenant
or its agents, employees, contractors, clients, invitees or subtenants except that caused by the sole active negligence or willful misconduct of Landlord or its agents or employees. Such loss or
damage shall include, but not be limited to, any injury or damage to, or death of, Landlord's employees or agents or damage to the Premises or any portion of the Building. 


         (ii)  any
and all environmental damages which arise from: (i) the Handling of any Tenant's Hazardous Materials, as defined in Section 6.03 or (ii) the
branch of any of the provisions of this Lease. For the purpose of this Lease, "environmental damages" shall mean (a) all claims, judgments, damages, penalties, fines, costs, liabilities, and
losses (including without limitation, diminution in the value of the Premises or any portion of the Building, damages for the loss of or restriction on use of rentable or usable space or of any
amenity of the Premises or any portion of the Building, and from any adverse impact on Landlord's marketing of space); (b) all reasonable sums paid for settlement of claims, attorneys' fees,
consultants' fees and experts' fees; and (c) all costs incurred by Landlord in connection with investigation or remediation relating to the Handling of Tenant's Hazardous Materials, whether or
not required by Environmental Laws, necessary for Landlord to make full economic use of the Premises or any portion of the Building, or otherwise required under this Lease. To the extent that Landlord
is held strictly liable by a court or other governmental agency of competent jurisdiction under any Environmental Laws. Tenant's obligation to Landlord and the other indemnities under the foregoing
indemnification shall likewise be without regard to fault on Tenant's part with respect to the violation of any Environmental Law which results in liability to the indemnitee. Tenant's obligations
and liabilities pursuant to this Section 10.01 shall survive the expiration or earlier termination of this Lease. 




        (B)  Landlord
agrees to protect, indemnify, hold harmless and defend Tenant from and against any and all loss, cost, damage, liability or expense, including reasonable
attorneys' fees, with respect to any claim of damage or injury to persons or property at the Premises, caused by the gross negligence of Landlord or its authorized agents or employees. 


        (C)  Notwithstanding
anything to the contrary contained herein, nothing shall be interpreted or used to in any way affect, limit, reduce or abrogate any insurance coverage
provided by any insurers to either Tenant or Landlord. 


        (D)  Notwithstanding
anything to the contrary contained in this Lease, nothing herein shall be construed to infer or imply that Tenant is a partner, joint venture, agent,
employee, or otherwise noting by or at the direction of Landlord. 



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        10.02    Property Insurance.    



        (A)  At
all times during the Lease Term, Tenant shall procure and maintain, at its sole expense, "all-risk" property insurance, for damage or other loss caused by
fire or other casualty or cause including, but not limited to, vandalism and malicious mischief, theft, water damage of any type, including sprinkler leakage, bursting of pipes, explosion, in an
amount not less than one hundred percent (100%) of the replacement cost covering (a) all Alterations made by or for Tenant in the Premises; and (b) Tenant's trade fixtures, equipment and
other personal property from time to time situated in the Premises. The proceeds of such insurance shall be used for the repair or replacement of the property so insured, except that if not so applied
or if this Lease is terminated following a casualty, the proceeds applicable to the leasehold improvements shall be paid to Landlord and the proceeds applicable to Tenant's personal property shall be
paid to Tenant. 


        (B)  At
all times during the Lease Term, Tenant shall procure and maintain business interruption insurance in such amount as will reimburse Tenant for direct or indirect loss
of earnings attributable to all perils insured against in Section 10.02(A). 


        (C)  Landlord
shall, at all times during the Lease Term, procure and maintain "all-risk" property insurance in the amount not less than ninety percent (90%) of
the insurable replacement cost
covering the Building in which the Premises are located and such other insurance as may be required by a Mortgagee or otherwise desired by Landlord. 




        10.03    Liability Insurance.    



        (A)  At
all times during the Lease Term, Tenant shall procure and maintain, at its sole expense, commercial general liability insurance applying to the use and occupancy of
the Premises and the business operated by Tenant. Such insurance shall have a minimum combined single limit of liability of at least One Million Dollars ($1,000,000) per occurrence and a general
aggregate limit of at least One Million Dollars ($1,000,000). All such policies shall be written to apply to all bodily injury, property damage, personal injury losses and shall be endorsed to include
Landlord and its agents, beneficiaries, partners, employees, and any deed of trust holder or mortgagee of Landlord or any ground lessor as additional insureds. Such liability insurance shall be
written as primary policies, not excess or contributing with or secondary to any other insurance as may be available to the additional insureds. 


        (B)  Prior
to the sale, storage, use or giving away of alcoholic beverages on or from the Premises by Tenant or another person, Tenant, at its own expense, shall obtain a
policy or policies of insurance issued by a responsible insurance company and in a form acceptable to Landlord saving harmless and protecting Landlord and the Premises against any and all damages,
claims, liens, judgments, expenses and costs, including actual attorneys' fess, arising under any present or future law, statute, or ordinance of the State of California or other governmental
authority having jurisdiction of the Premises, by reason of any storage, sale, use or giving away of alcoholic beverages on or from the Premises. Such policy or policies of insurance shall have a
minimum combined single limit of One Million ($1,000,000) per occurrence and shall apply to bodily injury, fatal or nonfatal; injury to means of support; and injury to property of any person. Such
policy or policies of insurance shall name Landlord and its agents, beneficiaries, partners, employees and any mortgagee of Landlord or any ground lessor of Landlord as additional insureds. 


        (C)  Landlord
shall, at all times during the Lease Term, procure and maintain commercial general liability insurance for the Building in which the Premises are located. Such
insurance shall have minimum combined single limit of liability of at least Two Million Dollars ($2,000,000) per occurrence, and a general aggregate limit of at least Two Million Dollars ($2,000,000). 



15







 





        10.04    Workers' Compensation Insurance.    At all times during the Lease Term, Tenant shall
procure and maintain Workers' Compensation Insurance in accordance with the laws of the State of California, and Employer's Liability Insurance with a limit not less than One Million Dollars
($1,000,000) Bodily Injury Each Accident; One Million Dollars ($1,000,000) Bodily Injury By Disease—Each Person; and One Million Dollars ($1,000,000) Bodily Injury to
Disease—Policy Limit. 


        10.05    Policy Requirements.    All insurance required to be maintained by Tenant shall be
issued by insurance companies authorized to do insurance business in the State of California and rated not less than A-VIII in Best's Insurance Guide. A certificate of insurance (or, at
Landlord's option, copies of the applicable policies) evidencing the insurance required under this Article X shall be delivered to Landlord not less than thirty (30) days prior to the
Commencement Date. No such policy shall be subject to cancellation or modification without thirty (30) days prior written notice to Landlord and to any deed of trust holder, mortgagee, or
ground lessor designated by Landlord to Tenant. Tenant shall furnish Landlord with a replacement certificate with respect to any insurance not less than thirty (30) days prior to the expiration
of the current policy. Tenant shall have the right to provide the insurance required by this Article X pursuant to blanket policies, but only if such blanket policies expressly provide coverage
to the Premises and Landlord as required by this Lease. 


        10.06    Waiver of Subrogation.    Each party hereby waives any right of recovery against the
other for injury or loss due to hazards covered by insurance or required to be covered, to the extent of the injury or loss covered thereby. Any policy of insurance to be provided by Tenant or
Landlord pursuant to this Article X shall contain a clause denying the applicable insurer any right of subrogation against the other party. 


        10.07    Failure to Insure.    If Tenant fails to maintain any insurance which Tenant is
required to maintain pursuant to this Article X, Tenant shall be liable to Landlord for any loss or cost resulting from such failure to maintain. Tenant may not self-insure against
any risks required to be covered by insurance without Landlord's prior written consent. 


ARTICLE XI—DAMAGE OR DESTRUCTION  


        11.01    Total Destruction.    Except as provided in Section 11.03 below, this Lease
shall automatically terminate if the Building is totally destroyed. 


        11.02    Partial Destruction of Premises.    If the Premises are damaged by any casualty and,
in Landlord's opinion, the Premises (exclusive of any Alterations made to the Premises by Tenant) can be restored to its pre-existing condition within two hundred seventy (270) days
after the date of the damage or destruction, Landlord shall, upon written notice from Tenant to Landlord of such damage, except as provided in Section 11.03, promptly and with due diligence
repair any damage to the Premises (exclusive of any Alterations to the Premises made by Tenant, which shall be promptly repaired by Tenant at its sole expense) and, until such repairs are completed,
the Rent shall be abated from the date of damage or destruction in the same proportion that the rentable area of the portion of the Premises which is unusable by Tenant in the conduct of its business
hours to the total rentable area of the Premises. If such repairs cannot, in Landlord's opinion, be made within said two hundred seventy (270) day period, then Landlord may, at its option,
exercisable by written notice given to Tenant within thirty (30) days after the date of the damage or destruction, elect to make the repairs within a
reasonable time after the damage or destruction, in which event this Lease shall remain in full force and effect but the Rent shall be abated as provided in the preceding sentence; if Landlord does
not so elect to make the repairs, then either Landlord or Tenant shall have the right, by written notice given to the other within sixty (60) days after the date of the damage or destruction,
to terminate this Lease as of the date of the damage or destruction. 


        11.03    Exceptions to Landlord's Obligations.    Notwithstanding anything to the contrary
contained in this Article XI, Landlord shall have no obligation to repair the Premises if either: (a) the Building in 


16







 



which
the Premises are located is so damaged as to require repairs to the Building exceeding twenty percent (20%) of the full insurable value of the Building; or (b) Landlord elects to demolish
the Building in which the Premises are located; or (c) the damage or destruction occurs less than two (2) years prior to the Termination Date, exclusive of option periods; or
(d) the damage or destruction is caused by an uninsured event. Further, Tenant's Rent shall not be abated if either (i) the damage or destruction is repaired within five
(5) business days after Landlord receives written notice from Tenant of the casualty, or (ii) Tenant, or any officers, partners, employees, agents or invitees of Tenant, or any assignee
or subtenant of Tenant, is, in whole or in part, responsible for the damage or destruction. 


        11.04    Waiver.    The provisions contained in this Lease shall supersede any contrary laws
(whether statutory, common law or otherwise) now or hereafter in effect relating to damage, destruction, self-help or termination, including California Civil Code Sections 1932 and 1933. 


ARTICLE XII—CONDEMNATION  


        12.01    Taking.    If the entire Premises or so much of the Premises as to render the balance
unusable by Tenant shall be taken by condemnation, sale in lieu of condemnation or in any other manner for any public or quasi-public purpose (collectively "Condemnation"), and if Landlord, at its
option, is unable or unwilling to provide substitute premises containing at least as much rentable area as described in Section 1.02 above, then this Lease shall terminate on the date that
title or possession to the Premises is taken by the condemning authority, whichever is earlier. 


        12.02    Award.    In the event of any Condemnation, the entire award for such taking shall
belong to Landlord. Tenant shall have no claim against Landlord or the award for the value of any unexpired term of this Lease or otherwise. Tenant shall be entitled to independently pursue a separate
award in a separate proceeding for Tenant's relocation costs directly associated with the taking, provided such separate award does not diminish Landlord's award. 



        12.03    Temporary Taking.    No temporary taking of the Premises shall terminate this Lease
or entitle Tenant to any abatement of the Rent payable to Landlord under this Lease; provided, further, that any award for such temporary taking shall belong to Tenant in the extent that the award
applies to any time period during the Lease Term and to Landlord to the extent that the award applies to any time period outside the Lease Term. 


ARTICLE XIII—RELOCATION  


        13.01    Relocation.    Landlord
shall have the right at its option upon not less than thirty (30) days prior written notice to Tenant, to relocate Tenant and to substitute for the Premises described above other space in the
Building containing at least as much rentable area as the Premises described in Section 1.02 above with equal or better tenant improvement than the current premises. If Tenant is already in
occupancy of the Premises, then Landlord shall approve in advance the relocation expenses for purposes of reimbursement for Tenant's reasonable moving and telephone relocation expenses and for
reasonable quantities of new stationery upon submission to Landlord of receipts for such expenditures incurred by Tenant. 


ARTICLE XIV—ASSIGNMENT AND SUBLETTING  


        14.01    Restriction.    Without the prior written consent of Landlord, which shall not be
unreasonably withheld, Tenant shall not, either voluntarily or by operation of law, assign, encumber, or otherwise transfer this Lease or any interest herein, or sublet the Premises or any part
thereof, or permit the Premises to be occupied by anyone other than Tenant or Tenant's employees (any such assignment, encumbrance, subletting, occupation or transfer is hereinafter referred to as a
"Transfer"). For purposes of this Lease, the term "Transfer" shall also include (a) if Tenant is a partnership, the withdrawal or change, voluntary, involuntary or by operation of law, of a
majority of the partners, or a 


17







 

transfer
of a majority of partnership interests, within a twelve month period, or the dissolution of the partnership, (b) if Tenant is a closely held corporation (i.e. whose stock is not
publicly held and not traded through an exchange or over the counter) or a limited liability company, the dissolution, merger, consolidation, division, liquidation or other reorganization of Tenant,
or within a twelve month period: (i) the sale or other transfer of more than an aggregate of 50% of the voting securities of Tenant (other than to immediate family members by reason of gift or
death) or (ii) the sale, mortgage, hypothecation or pledge of more than an aggregate of 50% of Tenant's net assets, and (c) any change by Tenant in the form of its legal organization
under applicable state law (such as, For example, a change from a general partnership to a limited partnership or from a corporation to a limited liability company). An assignment, subletting or other
action in violation of the foregoing shall be void and, at Landlord's option, shall constitute a material breach of this Lease. Notwithstanding anything contained in this Article XIV to the
contrary, Tenant shall have the right to assign the Lease or sublease the Premises, or any part thereof, to an "Affiliate" without the prior written consent of Landlord, but upon at least twenty
(20) days' prior written notice to Landlord, provided that said Affiliate is not in default under any other lease for space in a property that is managed by Landlord or its managing agent. For
purposes of this provision, the term "Affiliate" shall mean any corporation or other entity controlling, controlled by, or under common control with (directly or indirectly) Tenant, including, without
limitation, any parent corporation controlling Tenant or any subsidiary that Tenant controls. The term "control," as used herein, shall mean the power to direct or cause the direction of the
management and policies of the controlled entity through the ownership of more than fifty percent (50%) of the voting securities in such controlled entity. Notwithstanding anything contained in this
Article XIV to the contrary, Tenant expressly covenants and agrees not to enter into any lease, sublease, license, concession or other agreement for use, occupancy or utilization of the
Premises which provides for rental or other payment for such use, occupancy or utilization based in whole or in part on the net income or profits derived by any person from the property leased, used,
occupied or utilized (other than an amount based on a fixed percentage or percentages of receipts or sales), and that any such purported lease, sublease, license, concession or other agreement shall
be absolutely void and ineffective as a conveyance of any right or interest in the possession, use, occupancy or utilization of any part of the Premises. 


        14.02    Notice to Landlord.    If Tenant desires to assign this Lease or any interest herein,
or to sublet all or any part of the Premises, then at least thirty (30) days but not more than one hundred eighty (180) days prior to the effective date of the proposed assignment or
subletting, Tenant shall submit to Landlord in connection with Tenant's request for Landlord's consent: 



        (A)  A
statement containing (i) the name and address of the proposed assignee or subtenant; (ii) such financial information with respect to the proposed
assignee or subtenant as Landlord shall reasonably
require; (iii) the type of use proposed for the Premises; and (iv) all of the principal terms of the proposed assignment or subletting; and 


        (B)  Four
(4) originals of the assignment or sublease on a form approved by Landlord and four (4) originals of the Landlord's Consent to Sublease or Assignment
and Assumption of Lease and Consent. 




        14.03    Landlord's Recapture Rights.    At any time within twenty (20) business days
after Landlord's receipt of all (but not less than all) of the information and documents described in Section 14.02 above, Landlord may, at its option by written notice to Tenant, elect to;
(a) sublease the Premises or the portion thereof proposed to be sublet by Tenant upon the same terms as those offered to the proposed subtenant; (b) take an assignment of the Lease upon
the same terms as those offered to the proposed assignee; or (c) terminate the Lease in its entirety or as to the portion of the Premises proposed to be assigned or sublet, with a proportionate
adjustment in the Rent payable hereunder if the Lease is terminated as to less than all of the Premises. If Landlord does not exercise any of the options 


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described
in the preceding sentence, then, during the above-described twenty (20) business day period, Landlord shall either consent or deny its consent to the proposed assignment or
subletting. 


        14.04    Landlord's Consent; Standards.    Landlord's consent to a proposed assignment or
subletting shall not be unreasonably withheld; but, in addition to any other grounds for denial, Landlord's consent shall be deemed reasonably withheld if, in Landlord's good faith judgment;
(i) the proposed assignee or subtenant does not have the financial strength to perform its obligations under this Lease or any proposed sublease; (ii) the business and operations of the
proposed assignee or subtenant are not of comparable quality to the business and operations being conducted by other tenants in the Building; (iii) the proposed assignee or subtenant intends to
use any part of the Premises for a purpose not permitted under this Lease; (iv) either the proposed assignee or subtenant, or any person which directly or indirectly controls, is controlled by,
or is under common control with the proposed assignee or subtenant occupies space in the Building, or is negotiating with Landlord to lease space in the Building; (v) the proposed assignee or
subtenant is disreputable; or (vi) the use of the Premises or the Building by the proposed assignee or subtenant would, in Landlord's reasonable judgment, impact the Building in a negative
manner including but not limited to significantly increasing the pedestrian traffic in and out of the Building or requiring any alterations to the Building to comply with applicable laws;
(vii) the subject space is not regular in shape with appropriate means of ingress and egress suitable for normal renting purposes; (viii) the transferee is a government (or agency or
instrumentality thereof) or (ix) Tenant has failed to sure a default at the time Tenant requests consent for the proposed Transfer. 


        14.05    Additional Rent.    If Landlord consents to any such assignment or subletting, one
half (1/2) of the amount by which all sums or other economic consideration received by Tenant in connection with such assignment or subletting, whether denominated as rental or
otherwise, exceeds, in the aggregate, the total sums which Tenant is obligated to pay Landlord under this Lease (prorated to reflect obligations allocable to less than all of the Premises under a
sublease) shall be paid in Landlord promptly after
receipt as additional Rent under the Lease without affecting or reducing any other obligation of Tenant hereunder. 


        14.06    Landlord's Costs.    If Tenant shall Transfer this Lease or all or any part of the
Premises or shall request the consent of Landlord to any Transfer, Tenant shall pay to Landlord as additional rent Landlord's costs related thereto, including Landlord's reasonable attorney's fees and
a minimum fee to Landlord of Five Hundred Dollars ($500.00). 


        14.07    Continuing Liability of Tenant.    Notwithstanding any Transfer, including an
assignment or sublease to an Affiliate, Tenant shall remain as fully and primarily liable for the payment of Rent and for the performance of all other obligations of Tenant contained in this Lease to
the same extent as if the Transfer had not occurred; provided, however, that any act or omission of any transferee, other than Landlord, that violates the terms of this Lease shall be deemed a
violation of this Lease by Tenant. 


        14.08    Non-Waiver.    The consent by Landlord to any Transfer shall not relieve
Tenant, or any person claiming through or by Tenant, of the obligation to obtain the consent of Landlord, pursuant to this Article XIV, to any further Transfer. In the event of an assignment or
subletting, Landlord may collect rent from the assignee or the subtenant without waiving any rights hereunder and collection of the rent from a person other than Tenant shall not be deemed a waiver of
any of Landlord's rights under this Article XIV, an acceptance of assignee or subtenant as Tenant, or a release of Tenant from the performance of Tenant's obligations under this Lease. If
Tenant shall default under this Lease and fail to cure within the time permitted, Landlord is irrevocably authorized, as Tenant's agent and attorney-in-fact, to direct any
transferee to make all payments under or in connection with the Transfer directly to Landlord (which Landlord shall apply towards Tenant's obligations under this Lease) until such default is cured. 


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ARTICLE XV—DEFAULT AND REMEDIES  


        15.01    Events of Default By Tenant.    The occurrence of any of the following shall
constitute a material default and breach of this Lease by Tenant: 



        (A)  The
failure by Tenant to pay Base Rent or make any other payment required to be made by Tenant hereunder as and when due. 



        (B)  The
abandonment of the Premises by Tenant or the vacation of the Premises by Tenant for fourteen (14) consecutive days (with or without the payment of Rent). 


        (C)  The
making by Tenant of any assignment of this Lease or any sublease of all or part of the Premises, except as expressly permitted under Article XIV of this
Lease. 


        (D)  The
failure by Tenant to observe or perform any other provision of this Lease to be observed or performed by Tenant, other than those described in Sections 15.01(A),
15.01(B) or 15.01 (C) above, if such failure continues for fifteen (15) days after written notice thereof by Landlord to Tenant; provided, however, that if the nature of the default is
such that it cannot be cured within the fifteen (15) day period, no default shall exist if Tenant commences the curing of the default within the fifteen (15) day period and thereafter
diligently prosecutes the same to completion. The fifteen (15) day notice described herein shall be in lieu of, and not in addition to, any notice required under Section 1161 of the
California Civil Code of Procedure or any other law now or hereafter in effect requiring that notice of default be given prior to the commencement of an unlawful detainer or other legal proceeding. 


        (E)  The
making by Tenant or its Guarantor of any general assignment for the benefit of creditors, the filing by or against Tenant or its Guarantor of a petition under any
federal or state bankruptcy or insolvency laws (unless, in the case of a petition filed against Tenant or its Guarantor the same is dismissed within thirty (30) days after filing); the
appointment of a trustee or receiver to take possession of substantially all of Tenant's assets at the Premises or Tenant's interest in this Lease or the Premises, when possession is not restored to
Tenant within thirty (30) days; or the attachment, execution or other seizure of substantially all of Tenant's assets located at the Premises or Tenant's interest in this Lease or the Premises,
if such seizure is not discharged within thirty (30) days. 


        (F)  Any
material misrepresentations herein, or material misrepresentation or omission in any financial statements or other materials provided by Tenant or any Guarantor in
connection with negotiating or entering into this Lease or in connection with any Transfer under Section 14.01. 




        15.02    Landlord's Rights to Terminate Upon Tenant Default.    In the
event of any default by Tenant as provided in Section 15.01 above, Landlord shall have the right to terminate this Lease and recover possession of the Premises by giving written notice to
Tenant of Landlord's election to terminate this Lease, in which event Landlord shall be entitled to receive from Tenant: 



        (A)  The
worth at the time of award of any unpaid Rent which had been earned at the time of such termination; plus 


        (B)  The
worth at the time of award of the amount by which the unpaid Rent which would have been earned after termination until the time of award exceeds the amount of such
rental loss Tenant proves could have been reasonably avoided; plus 


        (C)  The
worth at the time of award of the amount by which the unpaid Rent for the balance of the term after the time of award exceeds the amount of such rental loss that
Tenant proves could be reasonably avoided; plus 



20







 




        (D)  Any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in
the ordinary course of things would be likely to result therefrom; and 


        (E)  At
Landlord's election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable law. 




        As
used in subparagraphs (A) and (B) above, "worth at the time of award" shall be computed by allowing interest on such amounts at the then highest lawful rate of interest,
but in no event to exceed one percent (1%) per annum plus the rate established by the Federal Reserve Bank of San Francisco on advances made to member banks under Sections of the Federal Reserve Act
("discount rate") prevailing at the time of the award. As used in paragraph (C) above, "worth at the time of award" shall be computed by discounting such amount by (i) the discount rate
of the Federal Reserve Bank of San Francisco prevailing at the time of award plus (ii) one percent (1%). 


        15.03    Mitigation of Damages.    If Landlord terminates this Lease or Tenant's right to
possession of the Premises, Landlord shall have no obligation to mitigate Landlord's damages except to the extent required by applicable law. If Landlord has not terminated this Lease or Tenant's
right to possession of the Premises, Landlord shall have no obligation to mitigate under any circumstances and may permit the Premises to remain vacant or abandoned. If Landlord is required to
mitigate damages as provided herein: (i) Landlord shall be required only to use reasonable efforts to mitigate, which shall not exceed such efforts as Landlord generally uses to lease other
space in the Building, (ii) Landlord will not be deemed to have failed to mitigate if Landlord or its affiliates lease any other portions of the Building or other projects owned by Landlord or
its affiliates in the same geographic area, before reletting all or any portion of the Premises, and (iii) any failure to mitigate as described herein with respect to any period of time shall
only reduce the Rent and other amounts to which Landlord is entitled hereunder by the reasonable rental value of the Premises during such period. In recognition that the value of the Building depends
on the rental rates and terms of leases therein, Landlord's rejection of a prospective replacement tenant based on an offer of rentals below Landlord's published rates for new leases of comparable
space at the Building at the time in question, or at Landlord's option, below the rates
provided in this Lease, or containing terms less favorable than those contained herein, shall not give rise to a claim by Tenant that Landlord failed to mitigate Landlord's damages. 


        15.04    Landlord's Right To Continue Lease Upon Tenant Default.    In the event of a default
of this Lease and abandonment of the Premises by Tenant, if Landlord does not elect to terminate this Lease as provided in Section 15.02 above, Landlord may from time to time, without
terminating this Lease, enforce all of its rights and remedies under this Lease. Without limiting the foregoing, Landlord has the remedy described in California Civil Code Section 1951.4
(Landlord may continue this Lease in effect after Tenant's default and abandonment and recover Rent as it becomes due, if Tenant has the right to Transfer, subject to reasonable limitations). In the
event Landlord re-lets the Premises, to the fullest extent permitted by law, the proceeds of any reletting shall be applied first to pay to Landlord all costs and expenses of such
reletting (including without limitation, costs and expenses of retaking or repossessing the Premises, removing persons and property therefrom, securing new tenants, including expense for redecoration,
alterations and other costs in connection with preparing the Premises for the new tenant, and if Landlord shall maintain and operate the Premises, the costs thereof) and receivers' fees incurred in
connection with the appointment of and performance by a receiver to protect the Premises and Landlord's interest under this Lease and any necessary or reasonable alterations; second, to the payment of
any indebtedness of Tenant to Landlord other than Rent due and unpaid hereunder; third, to the payment of Rent due and unpaid hereunder; and the residue, if any, shall be held by Landlord and applied
in payment of other or future obligations of Tenant to Landlord as the same may become due and payable, and Tenant shall not be entitled to receive any portion of such revenue. 


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        15.05    Right of Landlord to Perform.    All covenants and agreements to be performed by
Tenant under this Lease shall be performed by Tenant at Tenant's sole cost and expense. If Tenant shall fail to pay any sum of money, other than Rent, required to be paid by it hereunder or shall fail
to perform any other act on its part to be performed hereunder, Landlord may, but shall not be obligated to, make any payment or perform any such other act on Tenant's part to be made or performed,
without waiving or releasing Tenant of its obligations under this Lease. Any sums so paid by Landlord and all necessary incidental costs, together with interest thereon at the lesser of the maximum
rate permitted by law if any or twelve percent (12%) per annum from the date of such payment, shall be payable to Landlord as additional rent on demand and Landlord shall have the same rights and
remedies in the event of nonpayment as in the case of default by Tenant in the payment of Rent. 


        15.06    Default Under Other Leases.    If the term of any lease, other than this Lease,
heretofore or hereafter made by Tenant for any office space in the Building shall be terminated or terminable after the making of this Lease because of any default by Tenant under such other lease,
such fact shall empower Landlord, at Landlord's sole option, to terminate this Lease by notice to Tenant or to exercise any of the rights or remedies set forth in Section 15.02. 



        15.07    Non-Waiver.    Nothing in this Article shall be deemed to affect
Landlord's rights to indemnification for liability or liabilities arising prior to termination of this Lease or Tenant's right to possession of the Premises for personal injury or property damages
under the indemnification clause or clauses contained in this Lease. No acceptance by Landlord of a lesser sum than the Rent then due shall be deemed to be other than on account of the earliest
installment of such rent due, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as rent be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord's right to recover the balance of such installment or pursue any other remedy in the Lease provided. The delivery of keys to any employee of
Landlord or to Landlord's agent or any employee thereof shall not operate as a termination of this Lease or a surrender of the Premises. 


        15.08    Cumulative Remedies.    The specific remedies to which Landlord may resort under the
terms of the Lease are cumulative and are not intended to be exclusive of any other remedies or means of redress to which it may be lawfully entitled in case of any breach or threatened breach by
Tenant of any provisions of the Lease. In addition to the other remedies provided in the Lease, Landlord shall be entitled to a restraint by injunction of the violation or attempted or threatened
violation of any of the covenants, conditions or provisions of the Lease or to a decree compelling specific performance of any such covenants, conditions or provisions. 


        15.09    Default by Landlord.    Landlord's failure to perform or observe any of its
obligations under this Lease shall constitute a default by Landlord under this Lease only if such failure shall continue for a period of thirty (30) days (or the additional time, if any, that
is reasonably necessary to promptly and diligently cure the failure) after Landlord receives written notice from Tenant specifying the default. The notice shall give in reasonable detail the nature
and extent of the failure and shall identify the Lease provision(s) containing the obligations(s). If Landlord shall default in the performance of any of its obligations under this Lease (after notice
and opportunity to cure as provided herein), Tenant may pursue any remedies available to it under the law and this Lease, except that, in no event, shall Landlord be liable for punitive damages, lost
profits, business interruption, speculative, consequential or other such damages. In recognition that Landlord must receive timely payments of Rent and operate the Building, Tenant shall have no right
of self-help to perform repairs or any other obligation of Landlord, and shall have no right to withhold, set-off, or abate Rent. 


22








   ARTICLE XVI—ATTORNEYS' FEES; COSTS OF SUIT  


        16.01    Attorneys Fees.    If either Landlord or Tenant shall commence any action or other
proceeding against the other arising out of, or relating to, this Lease or the Premises, the prevailing party shall be entitled to recover from the losing party, in addition to any other relief, its
actual attorneys' fees irrespective of whether or not the action or other proceeding is prosecuted to judgment and irrespective of any court schedule of reasonable attorneys' fees. In addition, Tenant
shall reimburse Landlord, upon demand, for all reasonable attorneys' fees incurred in collecting Rent, resolving any actual default by Tenant, securing indemnification as provided in Article X
and paragraphs, 16.02, 23.01 and 25.01 herein or otherwise seeking enforcement against Tenant, its sublessees and assigns, of Tenant's obligations under this Lease. 



        16.02    Indemnification.    Should Landlord be made a party to any litigation instituted by
Tenant against a party other than Landlord, or by a third party against Tenant, Tenant shall indemnify, hold harmless and defend Landlord from any and all loss, cost, liability, damage or expense
incurred by Landlord, including attorneys' fees, in connection with the litigation. 


ARTICLE XVII—SUBORDINATION AND ATTORNMENT  



        17.01    Subordination.    This Lease, and the rights of Tenant hereunder, are and shall be
subject and subordinate to the interest of (i) all present and future ground leases and master leases of all or any part of the Building; (ii) present and future mortgages and deeds of
trust encumbering all or any part of the Building; (iii) all past and future advances made under any such mortgages or deeds of trust; and (iv) all renewals, modifications, replacements
and extensions of any such ground leases, master leases, mortgages and deeds of trust; provided, however, that any lessor under any such ground lease or master lease or any mortgagee or beneficiary
under any such mortgage or deed of trust (any such lessor, mortgagee or beneficiary is hereinafter referred to as a "Mortgagee") shall have the right to elect, by written notice given to Tenant, to
have this Lease made superior in whole or in part to any such ground lease, master lease, mortgage or deed of trust (or subject and subordinate to such ground lease, master lease, mortgage or deed of
trust but superior to any junior mortgage or junior deed of trust). Upon demand, Tenant shall execute, acknowledge and deliver any instruments reasonably requested by Landlord or any such Mortgagee to
effect the purposes of this Section 17.01. Such
instruments may contain, among other things, provisions to the effect that such Mortgagee (hereafter, for the purposes of this Section 17.01, a "Successor Landlord") shall (i) not be
liable for any act or omission of Landlord or its predecessors, if any, prior to the date of such Successor Landlord's succession to Landlord's interest under this Lease; (ii) not be subject to
any offsets or defenses which Tenant might have been able to assert against Landlord or its predecessors, if any, prior to the date of such Successor Landlord's succession to Landlord's interest under
this Lease; (iii) not be liable for the return of any security deposit under the Lease unless the same shall have actually been deposited with such Successor Landlord; (iv) be entitled
to receive notice of any Landlord default under this Lease plus a reasonable opportunity to cure such default prior to Tenant having any right or ability to terminate this Lease as a result of such
Landlord default; (v) not be bound by any rent or additional rent which Tenant might have paid for more than the current month to Landlord; (vi) not be bound by any amendment or
modification of the Lease or any cancellation or surrender of the same made without Successor Landlord's prior written consent; (vii) not be bound by any obligation to make any payment to
Tenant which was required to be made prior to the time such Successor Landlord succeeded to Landlord's interest and (viii) not be bound by any obligation under the Lease to perform any work or
to make any improvements to the demised Premises. Any obligations of any Successor Landlord under its respective lease shall be non-recourse as to any assets of such Successor Landlord
other than its interest in the Premises and improvements. 


        17.02    Attornment.    If the interests of Landlord under the Lease shall be transferred to
any superior Mortgagee or other purchaser or person taking title to the Building by reason of the 


23







 



termination
of any superior lease or the foreclosure of any superior mortgage or deed of trust, Tenant shall be bound to such Successor Landlord under all of the terms, covenants and conditions of the
Lease for the balance of the term thereof remaining and any extensions or renewals thereof which may be effected in accordance with any option therefor in the Lease, with the same force and effect as
if Successor Landlord were the landlord under the Lease, and Tenant shall attorn to and recognize as Tenant's landlord under this Lease such Successor Landlord, as its landlord, said attornment to be
effective and self-operative without the execution of any further instruments upon Successor Landlord's succeeding to the interest of Landlord under the Lease. Tenant shall, upon demand,
execute any documents reasonably requested by any such person to evidence the attornment described in this Section 17.02. Concurrently, upon written request from Tenant, and provided Tenant is
not in default under this Lease, Landlord agrees to use diligent, commercially reasonable efforts to obtain a Non-Disturbance Agreement from the Successor Landlord. Such
Non-Disturbance Agreement may be embodied in the Mortgagee's customary form of Subordination and Non-Disturbance Agreement. If, after exerting diligent, commercially reasonable
efforts, Landlord is unable to obtain a Non-Disturbance Agreement from any such Mortgagee, Landlord shall have no further obligation to Tenant with respect thereto. 


        17.03    Mortgagee Protection.    Tenant agrees to give any Mortgagee, by registered or
certified mail, a copy of any notice of default served upon Landlord by Tenant, provided that prior to such notice Tenant has been notified in writing (by way of service on Tenant of a copy of
Assignment of Rents and Leases, or otherwise) of the address of such Mortgagee (hereafter the "Notified Party"). Tenant further agrees that if Landlord shall have failed to cure such default within
twenty (20) days after such notice to Landlord (or if such default cannot be cured or corrected within that time, then such additional time as may be necessary if Landlord has commenced within
such twenty (20) days and is diligently pursuing the
remedies or steps necessary to cure or correct such default), then the Notified Party shall have an additional thirty (30) days within which to cure or correct such default (or if such default
cannot be cured or corrected within that time, then such additional time as may be necessary if the Notified Party has commenced within such thirty (30) days and is diligently pursuing the
remedies or steps necessary to cure or correct such default). Until the time allowed, as aforesaid, for the Notified Party to cure such default has expired without cure, Tenant shall have no right to,
and shall not, terminate this Lease on account of Landlord's default. 


ARTICLE XVIII—QUIET ENJOYMENT  


        18.01 Provided
that Tenant performs all of its obligations hereunder, Tenant shall have and peaceably enjoy the Premises during the Lease Term free of claims by or through
Landlord, subject to all of the terms and conditions contained in this Lease. 


ARTICLE XIX—RULES AND REGULATIONS  


        19.01 The
Rules and Regulations attached hereto as Exhibit C are hereby incorporated by reference herein and made a part hereof. Tenant shall abide by, and faithfully
observe and comply with the Rules and Regulations and any reasonable and non-discriminatory amendments, modifications and/or additions thereto as may hereafter be adopted and published by
written notice to tenants by Landlord for the safety, care, security, good order and/or cleanliness of the Premises and/or the Building. Landlord shall not be liable to Tenant for any violation of
such rules and regulations by any other tenant or occupant of the Building. 


ARTICLE XX—ESTOPPEL CERTIFICATES  


        20.01 Tenant
agrees at any time and from time to time upon not less than ten (10) days' prior written notice from Landlord to execute, acknowledge and deliver to
Landlord a statement in writing addressed and certifying to Landlord, to any current or prospective Mortgagee or any assignee thereof, 


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to
any prospective purchaser of the land, improvements or both comprising the Building, and to any other party designated by Landlord, that this Lease is unmodified and in full force and effect (of if
there have been modifications, that the same is in full force and effect as modified and stating the modifications); that Tenant has accepted possession of the Premises, which are acceptable in all
respects, and that any improvements required by the terms of this Lease to be made by Landlord have been completed to the satisfaction of Tenant; that Tenant is in full occupancy of the Premises; that
no rent has been paid more than thirty (30) days in advance; that the first month's Base Rent has been paid; that Tenant is entitled to no free rent or other concessions except as stated in
this Lease; that Tenant has not been notified of any previous assignment of Landlord's or any predecessor landlord's interest under this Lease; the dates to which Base Rent, additional rental and
other charges have been paid; that Tenant, as of the date of such certificate, has no charge, lien or claim of setoff under this Lease or otherwise against Base Rent, additional rental or other
charges due or to become due under this Lease; that Landlord is not in default in performance of any covenant, agreement or condition contained in this Lease; or any other matter rotating to this
Lease or the Premises or, if so, specifying each such default. If there is a Guaranty under this Lease, said Guarantor shall confirm the validity of the Guaranty by joining in the execution of the
Estoppel Certificate or other documents so requested by Landlord or Mortgagee. In addition, in the event that such certificate is being given to any Mortgagee, such statement may contain any other
provisions customarily required by such Mortgagee including, without limitation, an agreement on the part of Tenant to furnish to such Mortgagee, written notice of any Landlord default and a
reasonable opportunity for such Mortgagee to cure such default prior to Tenant being able to terminate this Lease. Any such statement delivered pursuant to this Section may be relied upon by Landlord
or any Mortgagee, or prospective purchaser to whom it is addressed and such statement, if required by its addressee, may so specifically state. If Tenant does not execute, acknowledge and deliver to
Landlord the statement as and when required herein, Landlord is hereby granted an irrevocable power-of-attorney, coupled with an interest, to execute such statement on Tenant's
behalf, which statement shall be binding on Tenant to the same extent as if executed by Tenant. 


ARTICLE XXI—ENTRY BY LANDLORD  


        21.01 Landlord
may enter the Premises at all reasonable times to: inspect the same; exhibit the same to prospective purchasers, Mortgagees or tenants; determine whether
Tenant is complying with all of its obligations under this Lease; supply janitorial and other services to be provided by Landlord to Tenant under this Lease; post notices of
non-responsibility; and make repairs or improvements in or to the Building or the Premises; provided, however, that all such work shall be done as promptly as reasonably possible and so as
to cause as little interference to Tenant as reasonably possible. Tenant hereby waives any claim for damages for any injury or inconvenience to, or interference with, Tenant's business, any loss of
occupancy or quiet enjoyment of the Premises or any other loss occasioned by such entry. Landlord shall at all times have and retain a key with which to unlock all of the doors in, on or about the
Premises (excluding Tenant's vaults, safes and similar areas designated by Tenant in writing in advance), and Landlord shall have the right to use any and all means by which Landlord may deem proper
to open such doors to obtain entry to the Premises, and any entry to the Premises obtained by Landlord by any such means, or otherwise, shall not under any circumstances be deemed or construed to be a
forcible or unlawful entry into or a detainer of the Premises or an eviction, actual or constructive, of Tenant from any part of the Premises. Such entry by Landlord shall not act as a termination of
Tenant's duties under this Lease. If Landlord shall be required to obtain entry by means other than a key provided by Tenant, the cost of such entry shall by payable by Tenant to Landlord as
additional rent. 


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ARTICLE XXII  


 LANDLORD'S LEASE UNDERTAKINGS—EXCULPATION FROM PERSONAL LIABILITY;

TRANSFER OF LANDLORD'S INTEREST  


        22.01    Landlord's Lease Undertakings.    Notwithstanding anything to the contrary contained
in this Lease or in any exhibits, Riders or addenda hereto attached (collectively the "Lease Documents"), it is expressly understood and agreed by and between the parties hereto that: (s) the
recourse of Tenant or its successors or assigns against Landlord with respect to the alleged breach by or on the part of Landlord of any representation, warranty, covenant, undertaking or agreement
contained in any of the Lease Documents or otherwise arising out of Tenant's use of the Premises or the Building (collectively, "Landlord's Lease Undertakings") shall extend only to Landlord's
interest in the real estate of which the Premises demised under the Lease Documents are a part ("Landlord's Real Estate") and not to any other assets of Landlord or its officers, directors or
shareholders; and (b) except to the extent of Landlord's interest in Landlord's Real Estate, no personal liability or personal responsibility of any sort with respect to any of Landlord's Lease
Undertakings or any alleged breach thereof is assumed by, or shall at any time be asserted or enforceable against, Landlord,
                        , or against any of their respective directors, officers,
employees, agents, constituent partners, beneficiaries, trustees or representatives. 



        22.02    Transfer of Landlord's Interest.    In the event of any transfer of Landlord's
interest in the Building, Landlord shall be automatically freed and relieved from all applicable liability with respect to performance of any covenant or obligation on the part of Landlord, provided
any deposits or advance rents held by Landlord are turned over to the grantee and said grantee expressly assumes, subject to the limitations of this Section 22, all the terms, covenants and
conditions of this Lease to be performed on the part of Landlord, it being intended hereby that the covenants and obligations contained in this Lease on the part of Landlord shall, subject to all the
provisions of this Section 22, be binding on Landlord, its successors and assigns, only during their respective periods of ownership. 


ARTICLE XXIII—HOLDOVER TENANCY  


        23.01 If
Tenant holds possession of the Premises after the expiration or termination of the Lease Term, by lapse of time or otherwise, Tenant shall become a tenant at
sufferance upon all of the terms contained herein, except as to Lease Term and Rent. During such holdover period, Tenant shall pay to Landlord a monthly rental equivalent to one hundred fifty percent
(150%) of the Rent Payable by Tenant to Landlord with respect to the last month of the Lease Term. The monthly rent payable for such holdover period shall in no event be construed as a penalty or as
liquidated damages for such retention of possession. Without limiting the foregoing, Tenant hereby agrees to indemnify, defend and hold harmless Landlord, its beneficiary, and their respective agents,
contractors and employees, from and against any and all claims, liabilities, actions, losses, damages (including without limitation, direct, indirect, incidental and consequential) and expenses
(including, without limitation, court costs and reasonable attorneys' fees) asserted against or sustained by any such party and arising from or by reason of such retention of possession, which
obligations shall survive the expiration or termination of the Lease Term. 


ARTICLE XXIV—NOTICES  


        24.01 All
notices which Landlord or Tenant may be required, or may desire, to serve on the other may be served, as an alternative to personal service, by mailing the same by
registered or certified mail, postage prepaid, addressed to Landlord at the address for Landlord set forth in Section 1.12 above and to Tenant at the address for Tenant set forth in
Section 1.13 above, or, from and after the Commencement Date, to Tenant at the Premises whether or not Tenant has departed from, abandoned or vacated the Premises, or addressed to such other
address or addresses as either Landlord or Tenant 


26







 

may
from time to time designate to the other in writing. Any notice shall be deemed to have been served at the time the same was posted. 


ARTICLE XXV—BROKERS  


        25.01 The
parties recognize as the broker(s) who procured this Lease the firm(s) specified in Section 1.14 and agree that Landlord shall be solely responsible for the
payment of any brokerage commissions to said broker(s), and that Tenant shall have no responsibility therefor unless written provision to the contrary has been made a part of this Lease. If Tenant has
dealt with any other person or real estate broker in respect to leasing, subleasing or renting space in the Building, Tenant shall be solely responsible for the payment of any fee due said person or
firm and Tenant shall protect, indemnify, hold harmless and defend Landlord from any liability in respect thereto. 


ARTICLE XXVI—ELECTRONIC SERVICES  


        26.01    Tenant's Lines.    Tenant may, in a manner consistent with the provisions and
requirements of this Lease, install, maintain, replace, remove or use any communications or computer or other electronic service wires, cables and related devices (collectively the "Lines") at the
Building in or serving the Premises, provided: (a) Tenant shall obtain Landlord's prior written consent, which consent may be conditioned as required by Landlord, (b) if Tenant at any
time uses any equipment that may create an electromagnetic field exceeding the normal insulation ratings of ordinary twisted pair riser cable or cause radiation higher than normal background
radiation, the Lines therefor (including riser cables) shall be appropriately insulated to prevent such excessive electromagnetic fields or radiation, and (c) Tenant shall pay all costs in
connection therewith. Landlord reserves the right to require that Tenant remove any Lines which are installed in violation of these provisions. Tenant shall not, without the prior written consent of
Landlord in each instance, grant to any third party a security interest or lien in or on the Lines, and any such security interest or lien granted without Landlord's written consent shall be null and
void. 


        26.02    Definition of Electronic Services.    As used herein "Electronic Services Provider"
means a business which provides telephone, telegraph, telex, video, other telecommunications or other services which permit Tenant to receive or transmit information by the use of electronics and
which require the use of wires, cables, antennas or similar devices in or on the Building. The services of Electronic Services Providers are sometimes referred to herein as "Electronic Services." 


        26.03    No Right to Specific Services.    Landlord shall have no obligation (i) to
install any Electronic Services equipment or facilities, (ii) to make available to Tenant the services of any particular Electronic Services Provider, (iii) to allow any particular
Electronic Services Provider access to the Building, (iv) to continue to grant access to an Electronic Services Provider once such provider has been given access to the Building. Landlord may
(but shall not have the obligation to): (x) install new Lines at the property, (y) create additional space for Lines at the property, and (z) adopt reasonable and uniform rules
and regulations with respect to Lines. 


        26.04    Limitation of Landlord's Responsibility.    Tenant acknowledges and agrees that all
Electronic Services desired by Tenant shall be ordered and utilized at the sole expense of Tenant. Unless Landlord otherwise requests or consents in writing, all of Tenant's Electronic Services
equipment shall be and remain solely in the Tenant's premises and the telephone closet(s) on the floor(s) on which the Tenant's premises is located, in accordance with rules and regulations adopted by
Landlord from time to time. Unless otherwise specifically agreed to in writing, Landlord shall have no responsibility for the maintenance of Tenant's Electronic Services equipment, including Lines;
nor for any Lines or other infrastructure to which Tenant's Electronic Services equipment may be connected. Tenant agrees that, to the extent any Electronic Services are interrupted, curtailed or
discontinued, Landlord shall have no obligation or liability with respect thereto and it shall be the sole obligation of Tenant at its own 


27







 



expense
to obtain substitute service. Except to the extent arising from the intentional or grossly negligent acts of Landlord or Landlord's agents or employees, Landlord shall have no liability for
damages arising from, and Landlord does not warrant that Tenant's use of any Lines will be free from the following (collectively called "Line Problems"): (x) any eavesdropping or
wire-tapping by unauthorized parties, (y) any failure of any Lines to satisfy Tenant's requirements, or (z) any shortages, failures, variations, interruptions,
disconnection's, loss or damage caused by the installation, maintenance, replacement, use of removal of Lines by or for other tenants or occupants at the property. Under no circumstances shall any
Line Problems be deemed an actual or constructive eviction of Tenant, render Landlord liable to Tenant for abatement of Rent, or relieve Tenant from performance of Tenant's obligations under this
Lease. Landlord in no event shall be liable for damages by reason of loss of profits, business interruption or other consequential damage arising from any Line Problems. 


        26.05    Necessary Service Interruptions.    Landlord shall have the right, upon reasonable
prior notice to Tenant, to interrupt or turn off Electronic Services facilities in the event of emergency or as necessary in connection with maintenance, repairs or construction at the Building or
installation of Electronic Services equipment for other Tenants of the Building or on account of violation by the Electronic Services Provider or owner of the Electronic Services equipment of any
obligation to Landlord or in
the event that Tenant's use of the Electronic Services infrastructure of the Building materially interferes with the Electronic Services of other tenants of the Building. 


        26.06    Removal of Equipment, Wiring and Other Facilities.    Any and all Electronic Services
equipment installed in the Tenant's Premises or elsewhere in the Building by or on behalf of Tenant, including Lines, or other facilities for Electronic Services reception or transmittal, shall be
removed prior to the expiration or earlier termination of the Lease term, by Tenant at its sole cost or, at Landlord's election, by Landlord at Tenant's sole cost, with the cost thereof to be paid as
additional rent. Landlord shall have the right, however, upon written notice to Tenant given no later than thirty (30) days prior to the expiration or earlier termination of the Lease term
(except that the notice period shall extend to thirty (30) days beyond the date of termination of the Lease if it is terminated by either party due to a default by the other), to require Tenant
to abandon and leave in place, without additional payment to Tenant or credit against rent, any and all Electronic Services Lines and related infrastructure, or selected components thereof, whether
located in the Tenant's premises or elsewhere in the Building. 


        26.07    New Provider Installations.    In the event that Tenant wishes at any time to utilize
the services of an Electronic Services Provider whose equipment is not then servicing the Building, no such Electronic Services Provider shall be permitted to install its Lines or other equipment
within the Building without first securing the prior written approval of the Landlord. Landlord's approval shall not be deemed any kind of warranty or representation by Landlord, including, without
limitation, any warranty or representation as to the suitability, competence, or financial strength of the Electronic Services Provider. Without limitation of the foregoing standard, unless all of the
following conditions are satisfied to Landlord's satisfaction, it shall be reasonable for Landlord to refuse to give its approval: (i) Landlord shall incur no current expense or risk or future
expense whatsoever with respect to any respect of the Electronic Services Provider's provision of its Electronic Services, including without limitation, the costs of installation, materials and
services; (ii) prior to commencement of any work in or about the Building by the Electronic Services Provider, the Electronic Services Provider shall supply Landlord with such written
indemnities, insurance, financial statements, and such other items as Landlord reasonably determines to be necessary to protect its financial interests and the interests of the Building relating to
the proposed activities of the Electronic Services Provider; (iii) the Electronic Services Provider agrees to abide by such rules and regulations, Building and other codes, job site rules and
such other requirements as are reasonably determined by Landlord to be necessary to protect the interests of the Building, the Tenants in the Building and Landlord, in the same or similar manner as
Landlord has the right to protect itself and the Building with respect to proposed alterations as 


28







 



described
in Article IX of this Lease; (iv) Landlord reasonably determines that, considering other potential uses for space in the Building, there is sufficient space in the Building for
the placement of all of the provider's equipment, conduit, Lines and other materials; (v) the Electronic Services Provider agrees to abide by Landlord's requirements, if any, that provider use
existing Building conduits and pipes or use Building contractors (or other contractors approved by Landlord); (vi) Landlord receives from the Electronic Services Provider such compensation as
is reasonably determined by Landlord to compensate it for space used in the Building for the storage and maintenance of the Electronic Services Provider's equipment, for the fair market value of a
Electronic Services Provider's access to the Building, for the use of common or core space within the Building and the costs which may reasonably be expected to be incurred by Landlord;
(vii) the provider agrees to deliver to Landlord detailed "as built" plans immediately after the installation of the provider's equipment is complete; and (viii) all of the foregoing
matters are documented in a written license agreement between Landlord and the provider, the form and content of which is reasonably satisfactory to Landlord." 


        26.08    Limit of Default or Breach.    Notwithstanding any provision of the proceeding
paragraphs to the contrary, the refusal of Landlord to grant its approval to any prospective Electronic Services Provider shall not be deemed a default or breach by Landlord of its obligation under
this Lease unless and until Landlord is adjudicated to have acted recklessly or maliciously with respect to Tenant's request for approval, and in that event, Tenant shall still have no right to
terminate the Lease or claim an entitlement to rent abatement, but may as Tenant's sole and exclusive recourse seek a judicial order of specific performance compelling Landlord to grant its approval
as to the prospective provider in question. The provisions of this paragraph may be enforced solely by Tenant and Landlord, are not for the benefit or any other party, and specifically but without
limitation, no telephone or other Electronic Services Provider shall be deemed a third party beneficiary of this Lease. 


        26.09    Installation and Use of Wireless Technologies.    Tenant shall not utilize any
wireless Electronic Services equipment (other than usual and customary cellular telephones), including antennae and satellite receiver dishes, within the Tenant's premises, within the Building or
attached to the outside walls or roof of the Building, without Landlord's prior written consent. Such consent may be conditioned in such a manner so as to protect Landlord's financial interests and
the interests of the Building, and the other tenants therein, in a manner similar to the arrangements described in the immediately proceeding paragraphs. 


        26.10    Limitation of Liability For Equipment Interference.    In the
event that Electronic Services equipment, Lines and facilities or satellite and antennae equipment of any type installed by or at the request of Tenant within the Tenant's premises, on the roof, or
elsewhere within or on the Building causes interference to equipment used by another party, Tenant shall cease using such equipment, Lines and facilities or satellite and antennae equipment until the
source of the interference is identified and eliminated and Tenant shall assume all liability related to such interference. Tennant shall cooperate with Landlord and other parties, to eliminate such
interference promptly. In the event that Tenant is unable to do so, Tenant will substitute alternative equipment which remedies the situation. If such interference persists, Tenant shall, at
Landlord's sole discretion, remove such equipment. 


ARTICLE XXVII—PARKING  


        27.01 During
the term of this Lease, Tenant shall be entitled to rent the number of Tenant's Parking Stalls, if any, described in Section 1.16 of this Lease in the
parking facilities located within the Building; provided, however, that if Tenant does not rent all of the Tenant's Parking Stalls allocated to Tenant pursuant to Section 1.16, any change in
the number of parking stalls actually rented by Tenant shall require not less than ten (10) days prior notice to Landlord. Such parking shall be on a non-assigned basis, and shall
be at such rates and upon such other terms and conditions as are published or posted from time to time by Landlord (or, at Landlord's option, the operator or lessee of the parking facilities).
Tenant's visitors shall have the right to use the parking facilities, subject to availability and to the rates, rules and regulations governing visitor parking from time to time adopted by Landlord
(or, at Landlord's option, the operator or matter lessee of the parking facilities). 


29








   ARTICLE XXVIII—MISCELLANEOUS  


        28.01    Entire Agreement.    This Lease contains all of the agreements and understandings
relating to the leasing of the Premises and the obligations of Landlord and Tenant in connection with such leasing. Landlord has not made, and Tenant is not relying upon, my warranties, or
representations, promises or statements made by Landlord or any agent of Landlord, except as expressly set forth herein. This Lease supersedes any and all prior agreements and understandings between
Landlord and Tenant and alone expresses the agreement of the parties. 


        28.02    Amendments.    This Lease shall not be amended, changed or modified in any way unless
in writing executed by Landlord and Tenant. Landlord shall not have waived or released any of its rights hereunder unless in writing and executed by Landlord. 



        28.03    Successors.    Except as expressly provided herein, this Lease and the obligations of
Landlord and Tenant contained herein shall bind and benefit the successors and assigns of the parties hereto. 


        28.04    Force Majeure.    Landlord shall incur no liability to Tenant with respect to, and
shall not be responsible for any failure to perform, and of Landlord's obligations hereunder if such failure is caused by any reason beyond the control of Landlord including, but not limited to,
strike, labor trouble, governmental rule, regulations, ordinance, statute or interpretation, or by fire, earthquake, civil commotion, or failure or disruption of utility services. The amount of time
for Landlord to perform any of Landlord's obligations shall be extended by the amount of time Landlord is delayed in performing such obligation by reason of any force majeure occurrence whether
similar to or different from the foregoing types of occurrences. 


        28.05    Survival of Obligations.    Any obligations of Tenant accruing prior to the
expiration of the Lease shall survive the expiration or earlier termination of the Lease, and Tenant shall promptly perform all such obligations whether or not this Lease has expired or been
terminated. 


        28.06    Light and Air.    No diminution or shutting off of any light, air or view by any
structure now or hereafter erected shall in any manner affect this Lease or the obligations of Tenant hereunder, or increase any of the obligations of Landlord hereunder. 


        28.07    Governing Law.    This Lease shall be governed by, and construed in accordance with,
the laws of the State of California. 


        28.08    Severability.    In the event any provision of this Lease is found to be
unenforceable, the remainder of this Lease shall not be affected, and any provision found to be invalid shall be enforceable to the extent permitted by law. The parties agree that in the event two
different interpretations may be given to any provision hereunder, one of which will render the provision unenforceable, and one of which will render the provision enforceable, the interpretation
rendering the provision enforceable shall be adopted. 


        28.09    Captions.    All captions, headings, titles, numerical references and computer
highlighting are for convenience only and shall have no effect on the interpretation of this Lease. 


        28.10    Interpretation.    Tenant acknowledges that it has read and reviewed this Lease and
that it has had the opportunity to confer with counsel in the negotiation of this Lease. Accordingly, this Lease shall be construed neither for nor against Landlord or Tenant, but shall be given a
fair and reasonable interpretation in accordance with the meaning of its terms and the intent of the parties. 


        28.11    Independent Covenants.    Each covenant, agreement, obligation or other provision of
this Lease to be performed by Tenant are separate and independent covenants of Tenant, and not dependent on any other provision of the Lease. 


30







 



        28.12    Number and Gender.    All terms and words used in this Lease, regardless of the
number or gender in which they are used, shall be deemed to include the appropriate number and gender, as the context may require. 



        28.13    Time is of the Essence.    Time is of the essence of this Lease and the performance
of all obligations hereunder. 


        28.14    Joint and Several Liability.    If Tenant comprises more than one person or entity,
or if this Lease is guaranteed by any party, all such persons shall be jointly and severally liable for payment of rents and the performance of Tenant's obligations hereunder. If Tenant comprises more
than one person or entity and fewer than all of the persons or entities comprising Tenant abandon the Premises, Landlord, at its sole option, may treat the abandonment by such person or entities as an
event of default and exercise with respect to such persons the rights and remedies provided in Article XV without affecting the right or obligations of the persons or entities comprising Tenant
which have not abandoned the property. 


        28.15    Exhibits.    Exhibits A (Outline of Premises), B (Work Letter Agreement), C (Rules
and Regulations), D (Guaranty) and E (Suite Acceptance Letter) are incorporated into this Lease by reference and made a part hereof. 


        28.16    Offer to Lease.    The submission of this Lease to Tenant or its broker or other
agent, does not constitute an offer to Tenant to lease the Premises. This Lease shall have no force and affect until (a) it is executed and delivered by Tenant to Landlord and (b) it is
fully reviewed and executed by Landlord; provided, however, that, upon execution of this Lease by Tenant and delivery to Landlord, such execution and delivery by Tenant, shall, in consideration of the
time and expense incurred by Landlord in reviewing the Lease and Tenant's credit, constitute an offer by Tenant to lease the Premises upon the terms and conditions set forth herein (which offer to
Lease shall be irrevocable for twenty (20) business days following the date of delivery). 


        28.17    No Counterclaim; Choice of Laws.    It is mutually agreed that in the event Landlord
commences any summary proceeding for non-payment of Rent, Tenant with not interpose any counterclaim of whatever nature or description in any such proceeding. In addition, Tenant hereby
submits to local jurisdiction in the State of California and agrees that any action by Tenant against Landlord shall be instituted in the State of California and that Landlord shall have personal
jurisdiction over Tenant for any action brought by Landlord against Tenant in the State of California. 


        28.18    Electrical Service to the Premises.    Anything set forth in Section 7.01 or
elsewhere in this Lease to the contrary notwithstanding, electricity to the Premises shall not be furnished by Landlord, but shall be furnished by the approved electric utility company serving the
Building. Landlord shall permit Tenant to receive such service directly from such utility company at Tenant's cost (except as otherwise provided herein) and shall permit Landlord's wire and conduits,
to the extent available, suitable and safely capable, to be used for such purposes. 


        28.19    Rights Reserved by Landlord.    Landlord reserves the following rights exercisable
without notice (except as otherwise expressly provided to the contrary in this Lease) and without being deemed an eviction or disturbance of Tenant's use or possession of the Premises or giving rise
to any claim for set-off or abatement of Rent: (i) to change the name of street address of the Building; (ii) to install, affix and maintain all signs on the exterior and/or
interior of the Building; (iii) to designate and/or approve prior to installation, all types of signs, window shades, blinds, drapes, awnings or other similar items, and all internal lighting
that may be visible from the exterior of the Premises and, notwithstanding the provisions of Article IX, the design, arrangement, style, color and general appearance of the portion of the
Premises visible from the exterior, and contents thereof, including without limitation, furniture, fixtures, signs, art work, wall coverings, carpet and decorations, and all changes, additions and
removals thereto, shall, at all times have the appearance of premises having the 


31







 



same
type of exposure and used for substantially the same purposes that are generally prevailing in comparable office buildings in the area. Any violation of this provision shall be deemed a material
breach of this Lease; (iv) to change the arrangement of entrances, doors, corridors, elevators and/or stairs in the Building, provided no such change shall materially adversely affect access to
the Premises; (v) to grant any party the exclusive right to conduct any business or render any service in the Building, provided such exclusive right shall not operate to prohibit Tenant from
using the Premises for the purposes permitted under this Lease; (vi) to prohibit the placement of vending or dispensing machines of any kind in or about the Premises other than for use by
Tenant's employees; (vii) to prohibit the placement of video or other electronic games in the Premises; (viii) to have access for Landlord and other tenants of the Building to any mail
chutes and boxes located in or on the Premises according to the rules of the United States Post Office and to discontinue any mail chute business in the Building; (ix) to close the Building
after normal business hours, except that Tenant and its employees and invitees shall be entitled to admission at all times under such rules and regulations as Landlord prescribes for security
purposes; (x) to install, operate and maintain security systems which monitor, by close circuit television or otherwise, all persons entering or leaving the Building; (xi) to install and
maintain pipes, ducts, conduits, wires and structural elements located in the Premises which serve other parts or other tenants of the Building; and (xii) to retain at all times master keys or
pass keys to the Premises. 


        28.20    Lease Termination.    The lease entered into by and between Landlord and Tenant for
Suite 503 dated October 1, 2003 ("Prior Lease") shall be terminated and Tenant shall be excused from any further obligations under the Prior Lease, including rent payments, upon the
Commencement Date of the Lease. 


        IN WITNESS WHEREOF, the parties hereto have executed this lease as of the date first above written. 



	 
	 	 
	 	 
	 	 

	LANDLORD:	 	TENANT:
	

16501 Ventura, LLC

c/o Jamison Properties, Inc.	
 	

 	
 	

 
	

By:	
 	

/s/  TAE NAM      
 Tae Nam	
 	

By:	
 	

/s/  DAVID FOX      
 David Fox
	Its:	 	Regional Manager	 	Its:	 	President
	

Date:	
 	

7/7/04	
 	

Date:	
 	

7-6-04




32








EXHIBIT B

WORK LETTER AGREEMENT  


 [Landlord Performs Work]  


        THIS AGREEMENT made as of the July 6, 2004, between 16501 Ventura, LLC, a California limited liability company, as ("Landlord") and Deja
Foods, Inc., a Nevada corporation, as ("Tenant"). 


        Reference
is made to the Lease dated July 6, 2004 (the "Lease") for premises known as Encino Executive Plan, Suite 602 (the "Premises"), located in the property known as 16501
Ventura Blvd, Encino, CA (the "Property"). 



	1.
	Landlord
shall put up a wall to divide one office into two, as indicated on the floorplan.



	2.
	Re-paint
and carpet entire premises with building standard material.



	3.
	Laminate
reception desk.



	4.
	Landlord
shall pay for the moving cost, including phone and data cabling.



	5.
	Any
other work not described in Work Letter Agreement shall be Tenant's responsibility. 




        Landlord
will use reasonable efforts to complete the Work by the Commencement Date under the Lease or within 60 days thereafter, subject in further delays beyond Landlord's
reasonable control (as may be further described in the Lease); provided, notwithstanding anything to the contrary contained in the Lease, delays in the Work hereunder shall not postpone the
commencement of Rent under any circumstances whether the delay is caused by Tenant or Tenant's contractors, agents or employees, or the delay is otherwise beyond Landlord's reasonable control (as may
be further described in the Lease),
or for any other reason whatsoever. Tenant acknowledges that the Work may occur during normal business hours while Tenant is in occupancy of the Premises and that no interference to Tenant's business
operations in, or use of, the Premises shall entitle Tenant to any abatement of rent or any other concession, or give rise to any claim against, or liability of Landlord. 


        Notwithstanding
anything to the contrary contained in this Work Letter, it is expressly understood and agreed by and between the parties hereto that, (a) The recourse of Tenant or
its successors or assigns against Landlord with respect to the alleged breach by or on the part of Landlord of any representation, warranty, covenant, undertaking or agreement contained in this Work
Letter (collectively, "Landlord's Work Letter Undertakings") shall extend only to Landlord's interest in the rent estate of which the Premises demised under the Lease are a part (hereinafter,
"Landlord's Real Estate") and not to any other assets of Landlord or its beneficiaries; and (b) Except to the extent of Landlord's interest in Landlord's Real Estate, no personal liability or
personal responsibility of any sort with respect to any of Landlord's Work Letter Undertakings or any alleged branch thereof is assumed by, or shall at any time be asserted or enforceable against,
Landlord, or against any of their respective directors, officers, shareholders, employees, agents, constituent partners, beneficiaries, trustees or representatives. 



	 	 	LANDLORD:
	

 	
 	

16501 Ventura, LLC c/o

Jamison Properties, Inc.
	

 	
 	

By:	
 	

/s/  TAE NAM      
 Tae Nam
	 	 	Its:	 	Regional Manager
	

 	
 	
TENANT:
	

 	
 	

By:	
 	

/s/  DAVID FOX      
 David Fox
	 	 	Its:	 	President
	

 	
 	

Date:	
 	

7-6-04









SCHEDULE 1  


 COPIES OF INITIAL PLAN  


 Suite #608 as indicated on the floorplan  








   EXHIBIT C

RULES AND REGULATIONS  


        1.     The
sidewalks, entrances, passages, courts, elevators, vestibules, stairways, corridors or halls shall not be obstructed or used for any purpose other than ingress and
egress. The halls, passages, entrances, elevators, stairways, balconies and roof are not for the use of the general public, and Landlord shall in all cases retain the right to control or prevent
access thereto by all persons whose presence in the judgment of Landlord shall be prejudicial to the safety, character, reputation or interests of Landlord and its tenants, provided that nothing
herein contained shall be construed to prevent such access by persons with whom the tenant normally deals in the ordinary course of its business unless such persons are engaged in illegal activities.
No tenant and no employees of any tenant shall go upon the roof of the Building without the written consent of Landlord. 


        2.     No
awnings or other projections shall be attached to the outside walls or surfaces of the Building nor shall the interior or exterior of any windows be coated without the
prior written consent of Landlord. Except as otherwise specifically approved by Landlord, all electrical ceiling fixtures hang in offices or spaces along the perimeter of the Building must be
fluorescent and of a quality, type, design and bulb color approved by Landlord. Tenant shall not place anything or allow anything to be placed near the glass of any window, door, partition or wall
which may appear unsightly from outside the Premises. 


        3.     No
sign, picture, plaque, advertisement, notice or other material shall be exhibited, painted, inscribed or affixed by any tenant on any part of, or so as to be seen from
the outside of, the Premises or the Building without the prior written consent of Landlord. In the event of the violation of the foregoing by any tenant, Landlord may remove the same without any
liability, and may charge the expense incurred in such removal to the tenant violating this rule. Interior signs on doors and the directory tablet shall be inscribed, painted or affixed for each
tenant by Landlord at the expense of such tenant, and shall be of a size, color and style acceptable to Landlord. 


        4.     The
toilets and wash basins and other plumbing fixtures shall not be used for any purpose other than those for which they were constructed, and no sweepings, rubbish,
rags or other substances shall be thrown therein. All damage resulting from any misuse of the fixtures shall be borne by tenant who, or whose servants, employees, agents, visitors or licensees, shall
have caused the same. 


        5.     No
tenant or its officers, agents, employees or invitees shall mark, paint, drill into, or in any way deface any part of the Premises or the Building. No boring, cutting
or stringing of wires or laying of linoleum or other similar floor coverings shall be permitted except with the prior written consent of Landlord and as Landlord may direct. 


        6.     No
bicycles, vehicles or animals of any kind shall be brought into or kept in or about the Premises and no cooking shall be done or permitted by any tenant on the
Premises except that microwave cooking in a UL-approved microwave oven and the preparation of coffee, tea, hot chocolate and similar items for the tenant and its employees and business
visitors shall be permitted. Tenant shall not cause or permit any unusual or objectionable odors to escape from the Premises. 


        7.     The
Premises shall not be used for manufacturing or for the storage of merchandise except as such storage may be incidental to the use of the Premises for general office
purposes. No tenant shall engage or pay any employees on the Premises except those actually working for such tenant on the Premises nor advertise for laborers giving an address at the Premises. The
Premises shall not be used for lodging or sleeping or for any immoral or illegal purposes. 



        8.     No
tenant or its officers, agents, employees or invitees shall make, or permit to be made any unseemly or disturbing noises, sounds or vibrations or disturb or interfere
with occupants of this or neighboring buildings or Premises or those having business with them whether by the use of any musical instrument, radio, phonograph, unusual noise, or in any other way. 


1







 



        9.     No
tenant or its officers, agents, employees or invitees shall throw anything out of doors, balconies or down the passageways. 



        10.   Tenant
shall not maintain armed security in or about the Premises nor possess any weapons, explosives, combustibles or other hazardous devices in or about the Building
and/or Premises. 


        11.   No
tenant or its officers, agents, employees or invitees shall at any time use, bring or keep upon the Premises any flammable, combustible, explosive, foul or noxious
fluid, chemical or substance, or do or permit anything to be done in the leased Premises, or bring or keep anything therein, which shall in any way increase the rate of fire insurance on the Building,
or on the property kept therein, or obstruct or interfere with the rights of other tenants, or in any way injure or annoy them, or conflict with the regulations of the Fire Department or the fire
laws, or with any insurance policy upon the Building, or any part thereof, or with any rules and ordinances established by the Board of Health or other governmental authority. 


        12.   No
additional locks or bolts of any kind shall be placed upon any of the doors or windows by any tenant, nor shall any changes be made in existing locks or the mechanism
thereof. Each tenant must, upon the termination of this tenancy, restore to Landlord all keys of stores, offices, and toilet rooms, either furnished to, or otherwise procured by, such tenant, and in
the event of the loss of any keys so furnished, such tenant shall pay to Landlord the cost of replacing the same or of changing the lock or locks opened by such lost key if Landlord shall deem it
necessary to make such change. 


        13.   All
removals, or the carrying in or out of any safes, freight, furniture, or bulky matter of any description must take place during the hours which Landlord may
determine from time to time. The moving of safes or other fixtures or bulky matter of any kind must be made upon previous notice to the manager of the Building and under his or her supervision, and
the persons employed by any tenant for such work must be acceptable to Landlord. Landlord reserves the right to inspect all safes, freight or other bulky articles to be brought into the Building and
to exclude from the Building all safes, freight or other bulky articles which violate any of these Rules and Regulations or the Lease of which these Rules and Regulations are a part. Landlord reserves
the right to prohibit or impose conditions upon the installation in the Premises of heavy objects which might overload the building floors. Landlord will not be responsible for loss of or damage to
any safes, freight, bulky articles or other property from any cause, and all damage done to the Building by moving or maintaining any such safe or other property shall be repaired at the expense of
the tenant. 


        14.   No
tenant shall purchase or otherwise obtain for use in the Premises water, ice, towel, vending machine, janitorial, maintenance or other like services, or accept
barbering or bootblacking services, except from persons authorized by Landlord, and at hours and under regulations fixed by Landlord. 



        15.   Landlord
shall have the right to prohibit any advertising by any tenant which, in Landlord's opinion, tends to impair the reputation of the Building or its desirability
as an office building and upon written notice from Landlord any tenant shall refrain from or discontinue such advertising. No tenant shall use any graphic image of the Building or any part of the
Building for advertising or public relations without Landlord's written permission. 


        16.   Landlord
reserves the right to exclude from the Building between the hours of 10:00 p.m. and 7:00 a.m. and at all hours of Saturdays, Sundays and legal
holidays all persons who do not present a pass signed by Landlord. Landlord shall furnish passes to persons for whom any tenant requests the same in writing. Each tenant shall be responsible for all
persons for whom he requests passes and shall be liable to Landlord for all acts of such persons. Landlord shall in no case be liable for damages for any error with regard to the admission to or
exclusion from the Building of any person. In the case of invasion, mob, riot, public excitement or other commotion, Landlord reserves the right to prevent access to the Building during the
continuance of the same, by closing of the gates and doors or otherwise, for the safety of the tenants and others and the protection of the Building and the property therein. 


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        17.   Any
outside contractor employed by any tenant, shall, while in the Building, be subject to the prior written approval of Landlord and subject to the Rules and
Regulations of the Building. Tenant shall be responsible for all acts of such persons and Landlord shall not be responsible for any loss or damage to property in the Premises, however occurring. 


        18.   All
doors opening onto public corridors shall be kept closed, except when in use for ingress and egress, and left locked when not in use. 


        19.   The
requirements of tenants will be attended to only upon application to the Office of the Building. 


        20.   Canvassing,
soliciting and peddling in the Building are prohibited and each tenant shall cooperate to prevent the same. 


        21.   All
office equipment of any electrical or mechanical nature shall be placed by tenants in the Premises in setting approved by Landlord, to absorb or prevent any
vibration, noise or annoyance. 


        22.   No
air conditioning unit or other similar apparatus shall be installed or used by any tenant without the written consent of Landlord. 



        23.   There
shall not be used in any space, or in the public halls of the Building either by any tenant or others, any hand trucks except those equipped with rubber tires and
side guards. 


        24.   Landlord
will direct electricians as to where and how telephone and telegraph wires are to be introduced. No boring or cutting for wires or stringing of wires will be
allowed without written consent of Landlord. The location of telephones, call boxes and other office equipment affixed to the Premises shall be subject to the approval of Landlord. All such work shall
be effected pursuant to permits issued by all applicable governmental authorities having jurisdiction. 



        25.   No
vendor with the intent of selling such goods shall be allowed to transport or carry beverages, food, food containers, etc., on any passenger elevators. The
transportation of such items shall be via the service elevators in such manner as prescribed by Landlord. 


        26.   Tenants
shall cooperate with Landlord in the conservation of energy used in or about the Building, including without limitation, cooperating with Landlord in obtaining
maximum effectiveness of the cooling system by closing drapes or other window coverings when the sun's rays fall directly on windows of the Premises, and closing windows and doors to prevent heat
loss. Tenant shall not obstruct, alter or in any way impair the efficient operation of Landlord's heating, lighting, ventilating and air conditioning system and shall not place bottles, machines,
parcels or any other articles on the induction unit enclosure so as to interfere with air flow. Tenant shall not tamper with or change the setting of any thermostats or temperature control valves, and
shall in general use heat, gas, electricity, air conditioning equipment and heating equipment in a manner compatible with sound energy conservation practices and standards. 


        27.   All
parking ramps and areas, pedestrian walkways, plazas, and other public areas forming a part of the Building shall be under the sole and absolute control of Landlord
with the exclusive right to regulate and control these areas. Tenant agrees to conform to the rules and regulations that may be established by Landlord for these areas from time to time. 


        28.   Landlord
reserves the right to exclude or expel from the Building any person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs,
or who shall in any manner do any act in violation of any of the rules and regulations of the Building. 


        29.   Tenant
and its employees, agents, subtenants, contractors and invitees shall comply with all applicable "no-smoking" ordinances and, irrespective of such
ordinances, shall not smoke or permit smoking of cigarettes, cigars or pipes outside of Tenant's Premises (including plaza areas) in any portions of the Building except areas specifically designated
as smoking areas by Landlord. If required by applicable ordinance, Tenant shall provide smoking areas within Tenant's Premises. 


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   EXHIBIT D

PERSONAL GUARANTY  


        FOR VALUE RECEIVED, and in consideration for, and as an inducement to, as Landlord, to enter into the foregoing
Lease dated July 6, 2004(the "Lease") with Deja Foods, Inc. a Nevada corporation, as Tenant, the undersigned individual(s), David Fox hereby absolutely and unconditionally guarantees to
Landlord, its successors and assigns, the prompt and full payment of all rent and all other payments to be made by Tenant under this Lease, and the full performance and observance by Tenant of all the
other terms, covenants, conditions and agreements therein provided to be performed and observed by Tenant, for which the undersigned shall be jointly and severally liable with Tenant. The undersigned
hereby waives any notice of nonpayment, nonperformance or nonobservance, or proof of notice or demand. The undersigned agrees that in the event of a default by Tenant under the Lease, Landlord may
proceed against the undersigned before, after or simultaneously with proceeding against Tenant. This Guaranty shall not be terminated, affected, or impaired in any manner by reason of: (1) the
assertion by Landlord against Tenant of any of the rights or remedies reserved to Landlord pursuant to the provisions of the Lease; (2) the commencement of summary or other proceedings against
Tenant; (3) the failure of Landlord to enforce any of its rights against Tenant; or (4) the granting by Landlord of any extensions of time to Tenant. The undersigned further covenants
and agrees that: (1) the undersigned shall be bound by all the provisions, terms, conditions, restrictions and limitations contained in the Lease which are to be observed or performed by Tenant
thereunder, the same as if the undersigned were named therein as Tenant; and (2) this Guaranty shall be absolute and unconditional and shall be in full force and effect with respect to any
amendment, addition, assignment, sublease transfer or other modification of the Lease, whether or not the undersigned shall have knowledge or have been notified of or agreed or consented thereto. If
Landlord at any time is compelled to take action, by legal proceedings or otherwise, to enforce or compel compliance with the terms of this Guaranty, the undersigned shall, in addition to any other
rights or remedies to which Landlord may be entitled hereunder or as a matter of law or in equity, pay to Landlord all costs, including reasonable attorneys' fees, incurred or expended by Landlord in
connection therewith. In the event the Lease in disaffirmed by a Trustee in Bankruptcy for Tenant, the undersigned agrees that it shall, at the election of Landlord, either assume the Lease and
perform all of the covenants, terms and conditions of Tenant thereunder or enter into a new lease, which said new lease shall be in form and substance identical to the Lease. All duties and
obligations of the undersigned pursuant to this Guaranty shall be binding upon the successors and assigns of the undersigned. For purposes of this Guaranty, the word "Tenant" shall include the
successors and assigns of the undersigned. This Guaranty shall be governed by and construed in accordance with the laws of the State of California. 



        The
undersigned further agrees that, to the extent that Tenant makes a payment or payments to Landlord or Landlord receives any proceeds of collateral, which payment or payments or any
part thereof are subsequently invalidated, declared to be fraudulent or preferential, act aside or otherwise is required to be repaid to Tenant, its estate, trustee, receiver or any other party,
including, without limitation, under any bankruptcy law, state or federal law, common law or equitable cause, then to the extent of such payment or repayment, the obligations of Tenant or part thereof
which has been paid,
reduced or satisfied by such amount shall be reinstated and continued in full force and effect as of the date such initial payment, reduction or satisfaction occurred. The undersigned shall defend and
indemnify Landlord of and from any claim or loss under this paragraph including Landlord's attorneys and paralegal fees and expenses and other expenses in the defense of any such action or suit. The
undersigned waives and shall have no right of subrogation, indemnification, reimbursement or exoneration with respect to the liabilities of Tenant under the Lease or any rights of contribution from
any other guarantors of such liabilities. 


        "Guarantor
waives (i) notice of acceptance of this guaranty and any and all notices and demands of every kind that may be required to be given by any statute or rule or law,
(ii) presentment, demand, 


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notice
of dishonor, protest and all other notices whatsoever, (iii) any right to participate in any security now or later held by Landlord, (iv) any right to enforce remedies Tenant now
has, or later may have, against Landlord, (v) diligence in collection or protection of or realization upon any obligation hereunder, or any security for or guaranty of any of the foregoing, and
any and all formalities that otherwise might be legally required to charge Guarantor with liability, (vi) any right to require Landlord to proceed against Tenant or any other person at any time
or to proceed against or exhaust any security held by Landlord at any time or to pursue any other remedy whatsoever at any time, (vii) the defense of any statute of limitations affecting the
liability of Guarantor hereunder or the enforcement thereof, to the extent permitted by law, (viii) any duty of Landlord to advise Guarantor of any information known to Landlord regarding the
financial condition of Tenant (it is agreed that Guarantor assumes the responsibility for being and keeping informed regarding such condition), (ix) Civil Code Sections 2800-2802,
2807, 2809, 2845, 2849, and 2850. The obligations of Guarantor hereunder are independent of the obligations of Tenant and, in the event of any default hereunder, a separate action or actions may be
brought and prosecuted against Guarantor whether or not Tenant is joined therein or a separate action or actions are brought against Tenant." 



	    
 By:	 	/s/  DAVID FOX      
 By:
	

 Date	
 	

7-6-04
 Date




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OFFICE LEASE between 16501 Ventura, LLC A Nevada limited liability Company (Landlord) and Deja Foods, Inc. A Nevada Corporation (Tenant)