Document:

ex10_98.htm

Exhibit 10.9.8

    Execution Conformed

     

    

     

    

     

    $100,000,000

     

    CREDIT
AGREEMENT

     

    Dated as
of February 6, 2009

     

    among

     

    RAYMOND
JAMES FINANCIAL, INC.,

    as
Borrower,

     

    THE
LENDERS NAMED HEREIN,

     

    JPMORGAN
CHASE BANK, NATIONAL ASSOCIATION,

    as
Administrative Agent,

     

    REGIONS
BANK,

     

    as
Co-Syndication Agent

     

    FIFTH
THIRD BANK,

     

    as
Co-Syndication Agent

     

    and

     

    PNC BANK,
NATIONAL ASSOCIAITON,

    as
Co-Syndication Agent

    

    

    _______________________________

     

    J.P.
MORGAN SECURITIES INC.,

     

    as Sole
Bookrunner and Sole Lead Arranger

     

    

     

    
      
        
          

          CHI:2133020.12

        

         

      

      
         

        
          

        

      

      
         

        
          

           

          TABLE OF CONTENTS

          

        

      

    

    

     

    
      	
              ARTICLE
      IDEFINITIONS

            	
               

            	
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NUMBER]

            

    

     

    
      	
              SECTION
      1.01Defined Terms

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      1.02Classification of Loans and Borrowings

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      1.03Terms Generally

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
               
      

            	
              SECTION
      1.04Accounting Terms; Agreement Accounting Principles[INSERT PAGE
NUMBER]

            

    

     

    
      	
              ARTICLE
      IITHE CREDITS

            	
               

            	
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NUMBER]

            

    

     

    
      	
              SECTION
      2.01Commitments

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.02Loans and Borrowings

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.03Requests for Revolving Borrowings

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.04[Intentionally Omitted]

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.05[Intentionally Omitted]

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.06[Intentionally Omitted]

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.07Funding of Borrowings

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.08Interest Elections

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.09Termination and Reduction of Commitments

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.10Repayment of Loans; Evidence of Debt

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.11Prepayment of Loans

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.12Fees

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.13Interest

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.14Alternate Rate of Interest

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.15Increased Costs

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.16Break Funding Payments

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.17Taxes

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
               
      

            	
              SECTION
      2.18Payments Generally; Pro Rata Treatment; Sharing of Set-offs[INSERT PAGE
NUMBER]

            

    

    
      	
               
      

            	
              SECTION
      2.19Mitigation Obligations; Replacement of Lenders[INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.20Extension of Maturity Date

            	
               

            	
              [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      2.21Defaulting Lenders.

            	
               

            	
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NUMBER]

            

    

     

    
      	
              ARTICLE
      III[Intentionally Omitted]

            	
               

            	
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NUMBER]

            

    

     

     

    
      	
              ARTICLE
      IVCONDITIONS PRECEDENT

            	
               

            	
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NUMBER]

            

    

     

    
      	
              SECTION
      4.01Effective Date

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      4.02Each Borrowing

            	
               

            	
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NUMBER]

            

    

     

    
      	
              ARTICLE
      VREPRESENTATIONS AND WARRANTIES

            	
               

            	
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              SECTION
      5.01Corporate Existence; Conduct of Business

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.02Authorization and Validity

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.03Compliance with Laws and Contracts

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.04Governmental Consents

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.05Financial Statements

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.06Material Adverse Change

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.07Taxes

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.08Litigation and Contingent Obligations

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.09Subsidiaries

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.10ERISA

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.11Defaults

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.12Federal Reserve Regulations

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.13Investment Company

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.14Ownership of Properties

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.15Material Agreements

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.16Insurance

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      5.17Disclosure

            	
               

            	
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NUMBER]

            

    

     

    
      	
              ARTICLE
      VICOVENANTS

            	
               

            	
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NUMBER]

            

    

     

    
      	
              SECTION
      6.01Financial Reporting

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.02Use of Proceeds

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.03Notice of Default

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.04Conduct of Business

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.05Taxes

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.06Insurance

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.07Compliance with Laws

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.08Maintenance of Properties

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.09Inspection

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.10Ownership of Subsidiaries

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.11Indebtedness

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.12Merger

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.13Sale of Assets

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.14Investments and Acquisitions

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.15Contingent Obligations

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.16Liens

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.17Affiliates

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.18Change in Corporate Structure; Fiscal Year

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.19Inconsistent Agreements

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.20Financial Covenants.

            	
               

            	
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NUMBER]

            

    

    
      	
               
      

            	
              6.20.1

            	
              Minimum
      Tangible Net Worth 

            	
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              6.20.2

            	
              Net
      Cash Capital to Net Liquid Assets Ratio 

            	
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NUMBER]

            

    

    
      	
               
      

            	
              6.20.3

            	
              Double
      Leverage Ratio 

            	
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NUMBER]

            

    

    
      	
               
      

            	
              6.20.4

            	
              RJA
      Net Capital 

            	
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NUMBER]

            

    

    
      	
               
      

            	
              6.20.5

            	
              RJFS
      Net Capital 

            	
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NUMBER]

            

    

    
      	
               
      

            	
              6.20.6

            	
              RJA/RJFS
      Excess Net Capital 

            	
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NUMBER]

            

    

    
      	
               
      

            	
              6.20.7

            	
              RJ
      Bank Nonperforming Assets 

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.21Borrower and RJ Bank Well Capitalized

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      6.22Restricted Payments

            	
               

            	
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              ARTICLE
      VIIEVENTS OF DEFAULT

            	
               

            	
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              ARTICLE
      VIIITHE ADMINISTRATIVE AGENT

            	
               

            	
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              ARTICLE
      IXGENERAL PROVISIONS

            	
               

            	
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              SECTION
      9.01Notices

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      9.02Waivers; Amendments

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      9.03Expenses; Indemnity; Damage Waiver

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      9.04Successors and Assigns

            	
               

            	
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      9.05Survival

            	
               

            	
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              SECTION
      9.06Counterparts; Integration; Effectiveness

            	
               

            	
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      9.07Severability

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      9.08Right of Setoff

            	
               

            	
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              SECTION
      9.09Governing Law; Jurisdiction; Consent to Service of
      Process          [INSERT PAGE
NUMBER]

            

    

    
      	
              SECTION
      9.10WAIVER OF JURY TRIAL

            	
               

            	
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              SECTION
      9.11Headings

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      9.12Confidentiality

            	
               

            	
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NUMBER]

            

    

    
      	
              SECTION
      9.13USA PATRIOT Act

            	
               

            	
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NUMBER]

            

    

    

    

     

    SCHEDULES

     

    Schedule
2.01                                           Commitments

    Schedule
5.09                                           Material
Subsidiaries

    Schedule
6.20                                           Securities
Percentage Haircuts

    

    

    EXHIBITS

     

    Exhibit
A                                Form
of Borrowing/Interest Election Request

    Exhibit
B                                Compliance
Certificate

    Exhibit
C                                Assignment
and Assumption

     

    
      
        
           

          CHI:2133020.12

        

         

      

      
         

        
          

        

      

      
         

      

    

    CREDIT
AGREEMENT

     

    This
CREDIT AGREEMENT, dated as of February 6, 2009, is among RAYMOND JAMES
FINANCIAL, INC., a Florida corporation, THE LENDERS (as hereinafter defined),
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, individually and as administrative
agent (the “Administrative
Agent”), and REGIONS BANK, FIFTH THIRD BANK AND PNC BANK, NATIONAL
ASSOCIATION, each individually and as a co-syndication agent (collectively, the
“Co-Syndication
Agents”).

     

    The
parties hereto agree as follows:

     

    ARTICLE
I

     

    

     

    DEFINITIONS

     

    SECTION
1.01 Defined
Terms.  As used in this Agreement the following terms have the
meanings specified below:

     

    “ABR”, when used in
reference to any Loan or Borrowing, refers to whether such Loan, or the Loans
comprising such Borrowing, are bearing interest at a rate determined by
reference to the Alternate Base Rate.

     

    “Acquisition” means
any transaction, or any series of related transactions, consummated on or after
the date of this Agreement, by which the Borrower or any of its Subsidiaries (a)
acquires any going business or all or substantially all of the assets of any
firm, corporation or limited liability company, or division or line of business
thereof, whether through purchase of assets, merger or otherwise, or (b)
directly or indirectly acquires (in one transaction or as the most recent
transaction in a series of transactions) at least a majority (in number of
votes) of the securities of a corporation which have ordinary voting power for
the election of directors (other than securities having such power only by
reason of the happening of a contingency) or a majority (by percentage or voting
power) of the outstanding ownership interests of a partnership or limited
liability company.

     

    “Adjusted LIBO Rate”
means, with respect to any Eurodollar Borrowing for any Interest Period, an
interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%)
equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the
Statutory Reserve Rate.

     

    “Administrative Agent”
means JPMorgan Chase Bank, National Association, in its capacity as
administrative agent for the Lenders pursuant to Article VIII, and not
in its individual capacity as a Lender, and any successor administrative agent
appointed pursuant to Article
VIII.

     

    “Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied
by the Administrative Agent.

     

    “Advisers Act” means
the Investment Advisers Act of 1940, as amended.

     

    “Affiliate” of any
Person means any other Person directly or indirectly controlling, controlled by
or under common control with such Person.  A Person shall be deemed to
control another Person if the controlling Person owns 10% or more of any class
of voting securities (or other ownership interests) of the controlled Person or
possesses, directly or indirectly, the power to direct or cause the direction of
the management or policies of the controlled Person, whether through ownership
of stock, by contract or otherwise.

     

    “Agents” means and
includes the Administrative Agent and the Co-Syndication Agents.

     

    “Aggregate Debit
Items” means, at any time, “aggregate debit items” computed in accordance
with Rule 15c3-1.

     

    “Aggregate
Indebtedness” means, at any time, “aggregate indebtedness” computed in
accordance with Rule 15c3-1.

     

    “Agreement” means this
Second Amended and Restated Revolving Credit Agreement, as amended, restated,
modified or supplemented from time to time.

     

    “Agreement Accounting
Principles” means generally accepted accounting principles in the United
States of America as in effect from time to time, applied in a manner consistent
with those used in preparing the Financial Statements.

     

    “Alternate Base Rate”
means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate
in effect on such day, (b) the Federal Funds Effective Rate in effect on such
day plus 1⁄2 of 1% and (c) the Adjusted LIBO Rate for a one month Interest Period
on such day (or if such day is not a Business Day, the immediately preceding
Business Day) plus 1%, provided that, for
the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the
rate appearing on the Reuters BBA Libor Rates Page 3750 (or on any successor or
substitute page of such page) at approximately 11:00 a.m. London time on such
day.  Any change in the Alternate Base Rate due to a change in the
Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be
effective from and including the effective date of such change in the Prime
Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate,
respectively.

     

    “Applicable
Percentage” means, with respect to any Lender, the percentage of the
total Commitments represented by such Lender’s Commitment; provided that in the
case of Section
2.21 when a Defaulting Lender shall exist, “Applicable Percentage” shall
mean the percentage of the total Commitments (disregarding any Defaulting
Lender’s Commitment) represented by such Lender’s Commitment. If the Commitments
have terminated or expired, the Applicable Percentages shall be determined based
upon the Commitments most recently in effect, giving effect to any
assignments.

     

    “Applicable Commitment Fee
Rate” means a rate per annum equal to 15% of the Applicable Margin for
Eurodollar Loans (determined on the effective date and thereafter in advance of
each quarterly calendar period on the last Business Day of the prior quarterly
calendar period); provided that the
Applicable Commitment Fee Rate shall in no event be less than 0.50% per
annum.

     

    “Applicable Margin”
means, for any day, (a) with respect to any Eurodollar Loan, 150% of the
applicable LIBOR Market Rate Spread, and (b) with respect to any ABR Loan, 1.00%
less than the Applicable Margin for Eurodollar Loans.

     

    “Approved Fund” has
the meaning assigned to such term in Section
9.04(b).

     

    “Assignment and
Assumption” means an assignment and assumption entered into by a Lender
and an assignee (with the consent of any party whose consent is required by
Section 9.04),
and accepted by the Administrative Agent, in the form of Exhibit C or any
other form approved by the Administrative Agent.

     

    “Authorized Officer”
means any of the chief executive officer, president, chief financial officer or
controller of the Borrower, acting singly.

     

    “Availability Period”
means the period from and including the Effective Date to but excluding the
earlier of the Maturity Date and the date of termination of the
Commitments.

     

    "Bank Holding Company
Act" means the Bank Holding Company Act of 1956, as amended.

     

    “Bankruptcy Code”
means Title 11, United States Code, sections 1 et seq., as the same may
be amended from time to time, and any successor thereto or replacement therefor
which may be hereafter enacted.

     

    “Board” means the
Board of Governors of the Federal Reserve System of the United States of
America.

     

    “Borrower” means
Raymond James Financial, Inc., a Florida corporation, and its successors and
assigns.

     

    “Borrowing” means
Revolving Loans of the same Type, made, converted or continued on the same date
and, in the case of Eurodollar Loans, as to which a single Interest Period is in
effect.

     

    “Borrowing Request”
means a request by the Borrower for a Revolving Borrowing in accordance with
Section
2.03.

     

    “Business Day” means
any day that is not a Saturday, Sunday or other day on which commercial banks in
New York City are authorized or required by law to remain closed; provided that, when
used in connection with a Eurodollar Loan, the term “Business Day” shall
also exclude any day on which banks are not open for dealings in dollar deposits
in the London interbank market.

     

    “CEA” means the
Commodity Exchange Act, as amended from time to time.

     

    “CFTC” means the
Commodities Future Trading Commission and any successor entity.

     

    “Capitalized Lease” of
a Person means any lease of Property by such Person as lessee which would be
capitalized on a balance sheet of such Person prepared in accordance with
Agreement Accounting Principles.

     

    “Capitalized Lease
Obligations” of a Person means the amount of the obligations of such
Person under Capitalized Leases which would be shown as a liability on a balance
sheet of such Person prepared in accordance with Agreement Accounting
Principles.

     

    “Change in Control”
means the acquisition by any Person, or two or more Persons acting in concert,
including without limitation any acquisition effected by means of a merger or
consolidation, of beneficial ownership (within the meaning of Rule 13d-3 of the
Commission under the Exchange Act) of 30% or more of the outstanding shares of
voting stock of the Borrower.  For purposes of making such
calculation, an “acquisition” shall not include a transfer of shares by a
shareholder or his estate to members of his immediate family (spouse, children,
grandchildren, spouses of children or grandchildren) or to trusts for the
benefit of the shareholder or members of his immediate family.

     

    “Change in Law” means
(a) the adoption of any law, rule or regulation after the date of this
Agreement, (b) any change in any law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority after the
date of this Agreement or (c) compliance by any Lender (or, for purposes of
Section
2.15(b), by any lending office of such Lender or by such Lender’s holding
company, if any) with any request, guideline or directive (whether or not having
the force of law) of any Governmental Authority made or issued after the date of
this Agreement.

     

     “Class”, when used in
reference to any Loan or Borrowing, refers to the fact that such Loan, or the
Loans comprising such Borrowing, are Revolving Loans.

     

    “Code” means the
Internal Revenue Code of 1986, as amended, reformed or otherwise modified from
time to time.

     

    “Commission” means the
Securities and Exchange Commission and any successor entity.

     

    “Commitment” means,
with respect to each Lender, the commitment of such Lender to make Revolving
Loans hereunder, expressed as an amount representing the maximum aggregate
amount of such Lender’s Revolving Loans, as such commitment may be (a) reduced
from time to time pursuant to Section 2.09 and (b)
reduced or increased from time to time pursuant to assignments by or to such
Lender pursuant to Section
9.04.  The initial amount of each Lender’s Commitment is set
forth on Schedule
2.01, or in the Assignment and Assumption pursuant to which such Lender
shall have assumed its Commitment, as applicable.  The initial
aggregate amount of the Lenders’ Commitments is $100,000,000.

     

    “Compliance
Certificate” means a certificate executed by an Authorized Officer
substantially in the form of Exhibit B
hereto.

     

    “Consolidated” or
“consolidated”,
when used in connection with any calculation, means a calculation to be
determined on a consolidated basis for the Borrower and its Subsidiaries in
accordance with Agreement Accounting Principles.

     

    “Contingent
Obligation” of a Person means any agreement, undertaking or arrangement
by which such Person assumes, guarantees, endorses, contingently agrees to
purchase or provide funds for the payment of, or otherwise becomes or is
contingently liable upon, the obligation or liability of any other Person, or
agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person
against loss, including, without limitation, any comfort letter, operating
agreement, take-or-pay contract or the obligations of any such Person as a
general partner of a partnership with respect to the liabilities of the
partnership.

     

    “Default” means any
event or condition which constitutes an Event of Default or which upon notice,
lapse of time or both would, unless cured or waived, become an Event of
Default.

     

    “Defaulting Lender”
means any Lender, as determined by the Administrative Agent, that has (a) failed
to fund any portion of its Loans within three Business Days of the date required
to be funded by it hereunder, (b) notified the Borrower, the Administrative
Agent or any Lender in writing that it does not intend to comply with any of its
funding obligations under this Agreement or has made a public statement to the
effect that it does not intend to comply with its funding obligations under this
Agreement or under other agreements in which it commits to extend credit, (c)
failed, within three Business Days after request by the Administrative Agent, to
confirm that it will comply with the terms of this Agreement relating to its
obligations to fund prospective Loans, (d) otherwise failed to pay over to the
Administrative Agent or any other Lender any other amount required to be paid by
it hereunder within three Business Days of the date when due, unless the subject
of a good faith dispute, or (e) (i) become or is insolvent or has a parent
company that has become or is insolvent or (ii) become the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee
or custodian appointed for it, or has taken any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding or
appointment or has a parent company that has become the subject of a bankruptcy
or insolvency proceeding, or has had a receiver, conservator, trustee or
custodian appointed for it, or has taken any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding or
appointment.

    

    “Double Leverage
Ratio” means, at any time, as calculated for the Borrower on a
parent-only basis in accordance with Agreement Accounting Principles, the ratio
of (a) Investments in Subsidiaries plus, without
duplication, (i) Intangible Assets, (ii) net equity Investments in real estate
partnerships, and (iii) private equity Investments and the funding commitments
related thereto, to (b) the shareholders’ equity of the Borrower.

     

    “Effective Date” means
the date on which the conditions specified in Section 4.01 are
satisfied (or waived in accordance with Section
9.02).

     

    “Environmental Laws”
means all laws, rules, regulations, codes, ordinances, orders, decrees,
judgments, injunctions, notices or binding agreements issued, promulgated or
entered into by any Governmental Authority, relating in any way to the
environment, preservation or reclamation of natural resources, the management,
release or threatened release of any Hazardous Material or to health and safety
matters.

     

    “Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Borrower or any Subsidiary directly or indirectly resulting
from or based upon (a) violation of any Environmental Law, (b) the generation,
use, handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any
contract, agreement or other consensual arrangement pursuant to which liability
is assumed or imposed with respect to any of the foregoing.

     

    “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to
time.

     

    “ERISA Affiliate”
means any trade or business (whether or not incorporated) that, together with
the Borrower, is treated as a single employer under Section 414(b) or (c) of the
Code or, solely for purposes of Section 302 of ERISA and Section 412 of the
Code, is treated as a single employer under Section 414 of the
Code.

     

    “ERISA Event” means
(a) any “reportable event”, as defined in Section 4043 of ERISA or the
regulations issued thereunder with respect to a Plan (other than an event for
which the 30 day notice period is waived); (b) the existence with respect to any
Plan of an “accumulated funding deficiency” (as defined in Section 412 of the
Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to
Section 412(d) of the Code or Section 303(d) of ERISA of an application for a
waiver of the minimum funding standard with respect to any Plan; (d) the
incurrence by the Borrower or any of its ERISA Affiliates of any liability under
Title IV of ERISA with respect to the termination of any Plan; (e) the receipt
by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of
any notice relating to an intention to terminate any Plan or Plans or to appoint
a trustee to administer any Plan; (f) the incurrence by the Borrower or any of
its ERISA Affiliates of any liability with respect to the withdrawal or partial
withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the
Borrower or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

     

    “Eurodollar”, when
used in reference to any Loan or Borrowing, refers to whether such Loan, or the
Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

     

    “Event of Default” has
the meaning assigned to such term in Article
VII.

     

    “Excess Net Capital”
means, at any time, “excess net capital” computed in accordance with Rule
15c3-1.

     

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended.

     

    “Excluded Taxes”
means, with respect to the Administrative Agent, any Lender or any other
recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) income or franchise taxes imposed on (or measured by)
its net income by the United States of America, or by the jurisdiction under the
laws of which such recipient is organized or in which its principal office is
located or, in the case of any Lender, in which its applicable lending office is
located, (b) any branch profits taxes imposed by the United States of America or
any similar tax imposed by any other jurisdiction in which the Borrower is
organized or in which its principal office is located and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section
2.19(b)), any withholding tax that is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party to this Agreement
(or designates a new lending office) or is attributable to such Foreign Lender’s
failure to comply with Section 2.17(e),
except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment), to
receive additional amounts from the Borrowers with respect to such withholding
tax pursuant to Section
2.17(a).

     

    “Extension Date” is
defined in Section
2.20.

     

    “Extension Period” is
defined in Section
2.20.

     

    “Extension Request” is
defined in Section
2.20.

     

    “FDIC” means the
Federal Deposit Insurance Corporation or any successor entity.

     

    “FDIC-Guaranteed Term
Notes” means senior unsecured notes of the Borrower, guaranteed by the
FDIC and backed by the full faith and credit of the United States, maturing on
or before June 30, 2012 and issued pursuant to and in conformity with the FDIC’s
Temporary Liquidity Guarantee Program (and related Master Agreement) in an
aggregate principal amount not exceeding the guarantee cap established by the
FDIC for the Borrower.

     

    “Federal Funds Effective
Rate” means, for any day, the weighted average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day that
is a Business Day, the average (rounded upwards, if necessary, to the next 1/100
of 1%) of the quotations for such day for such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by it.

     

    “Financial Statements”
is defined in Section
5.05.

     

    “FINRA” means the
Financial Industry Regulatory Authority or any successor entity.

     

    “Fiscal Quarter” means
one of the four three-month accounting periods comprising a Fiscal
Year.

     

    “Fiscal Year” means
the twelve-month accounting period ending on the last day of September of each
year.

     

    “FOCUS Report” means,
for any Person, the Financial and Operational Combined Uniform Single Report
required to be filed on a monthly or quarterly basis, as the case may be, with
the Commission or the NYSE, or any report that is required in lieu of such
report.

     

    “Foreign Lender” means
any Lender that is organized under the laws of a jurisdiction other than that in
which the Borrower is organized.  For purposes of this definition, the
United States of America, each State thereof and the District of Columbia shall
be deemed to constitute a single jurisdiction.

     

    “Governmental
Authority” means any government (foreign or domestic) or any state or
other political subdivision thereof or any governmental body, agency, authority,
regulatory body, court, central bank, department or commission (including
without limitation any taxing authority or political subdivision) or any
instrumentality or officer thereof (including without limitation any court or
tribunal) exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government and any corporation,
partnership or other entity directly or indirectly owned or controlled by or
subject to the control of any of the foregoing.

     

    “Hazardous Materials”
means all explosive or radioactive substances or wastes and all hazardous or
toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental Law.

     

    “Illiquid Assets”
means, as of any date, the sum, without duplication, on a consolidated basis
(excluding RJ Bank other than as provided in clause (vii) below) of (i)
Intangible Assets, (ii)  property and equipment, (iii) net equity
Investments in real estate partnerships, (iv) private equity Investments and the
funding commitments related thereto, (v) net deferred tax assets, (vi) prepaid
expenses and “other” assets, (vii) shareholder equity in RJ Bank and receivables
from RJ Bank, (viii) any assets of RJA, RJFS, Raymond James Ltd. or any other
broker-dealer Subsidiary that would be deducted from regulatory capital in
determining net regulatory capital, (ix) auction rate securities owned by the
Borrower or its Subsidiaries, (x) the applicable haircuts on securities owned by
the Borrower or its Subsidiaries as specified on Schedule 6.20, and
(xi) other Investments (but excluding investments in Canadian Treasury bills at
Raymond James Ltd. that are recorded under “other” assets).

     

    “Indebtedness” of a
Person means such Person’s (a) obligations for borrowed money, (b) obligations
representing the deferred purchase price of Property or services (other than
accounts payable arising in the ordinary course of such Person’s business
payable on terms customary in the trade) and obligations arising under a master
repurchase agreement (securities), (c) obligations, whether or not assumed,
secured by Liens or payable out of the proceeds or production from Property now
or hereafter owned or acquired by such Person, (d) obligations which are
evidenced by notes, acceptances, preferred stock (other than preferred stock of
the Borrower) or other instruments, (e) Capitalized Lease Obligations, (f)
Contingent Obligations, (g) obligations for which such Person is obligated
pursuant to or in respect of a Letter of Credit, and (h) any other obligation
for borrowed money which in accordance with Agreement Accounting Principles
would be shown as a liability on the consolidated balance sheet of such
Person.

     

    “Indemnified Taxes”
means Taxes other than Excluded Taxes.

     

    “Indemnitee” has the
meaning assigned to such term in Section
9.03(b).

     

    “Information” has the
meaning assigned to such term in Section
9.12.

     

    “Intangible Assets”
means goodwill, intellectual property rights, unamortized deferred charges,
organizational or developmental expenses, and other intangible
items.

     

    “Interest Election
Request” means a request by the Borrower to convert or continue a
Revolving Borrowing in accordance with Section
2.08.

     

    “Interest Payment
Date” means (a) with respect to any ABR Loan, the last day of each March,
June, September and December and (b) with respect to any Eurodollar Loan, the
last day of the Interest Period applicable to the Borrowing of which such Loan
is a part and, in the case of a Eurodollar Borrowing with an Interest Period of
more than three months’ duration, each day prior to the last day of such
Interest Period that occurs at intervals of three months’ duration after the
first day of such Interest Period.

     

    “Interest Period”
means with respect to any Eurodollar Borrowing, the period commencing on the
date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter, as the Borrower
may elect; provided, that (i) if
any Interest Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless such next
succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day and (ii) any
Interest Period pertaining to a Eurodollar Borrowing that commences on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end
on the last Business Day of the last calendar month of such Interest
Period.  For purposes hereof, the date of a Borrowing initially shall
be the date on which such Borrowing is made and thereafter shall be the
effective date of the most recent conversion or continuation of such
Borrowing.

     

    “Investment” of the
Borrower or a Subsidiary means any (a) loan, advance (other than (i) commission,
bonus, travel and similar advances to officers and employees made in the
ordinary course of business and (ii) non-recourse loans to directors, officers
and employees of the Borrower or its Subsidiaries for investments in
Borrower-sponsored investment programs), extension of credit (other than
accounts receivable and customer loans secured by customer securities in each
case arising in the ordinary course of business on terms customary in the trade)
or contribution of capital by such Person; (b) stocks, bonds, mutual funds,
partnership interests, notes, debentures or other securities owned by such
Person; (c) any deposit accounts and certificate of deposit owned by such
Person; and (d) structured notes, derivative financial instruments and other
similar instruments or contracts owned by such Person; provided, however, that in
regard to clauses (b), (c) and (d), “Investment” shall not include any such
securities, accounts or instruments owned or acquired by the Borrower or its
Subsidiaries in the ordinary course of its business, including but not limited
to the market making activities of RJA and the mortgage-backed securities
purchased by RJ Bank in the ordinary course of business.

     

    “Investment Company
Act” means the Investment Company Act of 1940, as amended.

     

    “Lead
Arranger”  means J.P. Morgan Securities Inc.

     

    “Lenders” means the
Persons listed on Schedule 2.01 and any
other Person that shall have become a party hereto pursuant to an Assignment and
Assumption, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Assumption.

     

    “Letter of Credit” of
a Person means a letter of credit or similar instrument which is issued upon the
application of such Person or upon which such Person is an account party or for
which such Person is in any way liable.

     

    “LIBO Rate” means,
with respect to any Eurodollar Borrowing for any Interest Period, the rate
appearing on Reuters BBA Libor Rates Page 3750 (or on any successor or
substitute page of such page providing rate quotations comparable to those
currently provided on such page), as determined by the Administrative Agent from
time to time for purposes of providing quotations of interest rates applicable
to dollar deposits in the London interbank market) at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest
Period, as the rate for dollar deposits with a maturity comparable to such
Interest Period.  In the event that such rate is not available at such
time for any reason, then the “LIBO Rate” with
respect to such Eurodollar Borrowing for such Interest Period shall be the rate
at which dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the Administrative
Agent in immediately available funds in the London interbank market at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

     

    “LIBOR Market Rate
Spread” means, with respect to any Eurodollar Loan, a percentage rate per
annum equal to the average of the Markit CDX.NA.IG Series 11 or any successor
series (5 Year Period) for the preceding 30 business days (the “Credit Default Swap
Spread”) as provided by Markit Group Limited (“Markit”) to the
Administrative Agent; provided that the
LIBOR Market Rate Spread with respect to any Eurodollar Loan shall in no event
be less than 2.50%.  The LIBOR Market Rate Spread will be set on the
date which is two Business Days prior to the first day of each Interest Period
for each Eurodollar Loan; provided that for
each Eurodollar Loan having an Interest Period longer than three months, the
LIBOR Market Rate Spread shall be reset as of the last day of each three-month
interval during such Interest Period.  If for any reason the Credit
Default Swap Spread is not available or is not provided by Markit to the
Administrative Agent by 11:00 a.m., New York City time, on any date of
determination of the Credit Default Swap Spread, the Borrower and the Lenders
shall negotiate in good faith, for a period up to 30 days thereafter (such
30-day period, the “Negotiation Period”),
to agree on an alternative method for establishing the LIBOR Market Rate Spread;
provided that
(i) the LIBOR Market Rate Spread on any date of determination thereof in
accordance with this definition which falls during the Negotiation Period shall
be based upon the then most recently available Credit Default Swap Spread and
(ii) if no such alternative method is agreed upon during the Negotiation Period,
the LIBOR Market Rate Spread with respect to any Loan shall be the LIBOR Market
Rate Spread determined under clause (i) above and increased by (x) 0.25% on the
first Business Day following the expiration of the Negotiation Period (the
“Initial Rate Increase
Date”) and (y) an additional 0.25% on each succeeding 90-day anniversary
of the Initial Rate Increase Date (or if such 90th day is
not a Business Day, on the immediately succeeding Business Day), in each case,
so long as the Credit Default Swap Spread remains unavailable or is not provided
by Markit and an alternative method for establishing the LIBOR Market Rate
Spread has not been agreed upon by the Borrower and the Lenders
hereunder.

     

    “Lien” means any
security interest, lien (statutory or other), mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance or preference, priority or other
security agreement or preferential arrangement of any kind or nature whatsoever
(including, without limitation, the interest of a vendor or lessor under any
conditional sale, Capitalized Lease or other title retention
agreement).

     

    “Loan” means a
Revolving Loan.

     

    “Loan Documents” means
this Agreement, any Notes issued pursuant to Section 2.10(e) and
the other documents and agreements contemplated hereby and executed by the
Borrower in favor of the Administrative Agent or any Lender.

     

    “MSRB” means the
Municipal Securities Rulemaking Board and any successor entity.

     

    “Margin Stock” has the
meaning assigned to that term under Regulation U.

     

    “Material Adverse
Effect” means a material adverse effect on (a) the business, Property,
condition (financial or otherwise) or results of operations of the Borrower and
its Subsidiaries taken as a whole, (b) the ability of the Borrower to perform
its obligations under the Loan Documents, or (c) the rights of or benefits
available to the Administrative Agent and the Lenders under the Loan
Documents.

     

    “Material Subsidiary”
means (a) any of the Subsidiaries listed on Schedule 5.09 hereto
and (b) in the case of any specified condition or event, any other Subsidiary or
group of other Subsidiaries (i) each of which has suffered such condition or
event to occur and (ii) that in the aggregate represents five percent (5%) or
more of the net revenues or the consolidated assets of the Borrower and its
Subsidiaries, as reflected in the then most recent financial statements
delivered pursuant to Section 6.01(a) or
(b).

     

    “Maturity Date” means
February 4, 2010.

     

    “Multiemployer Plan”
means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

     

    “NYSE” means the New
York Stock Exchange, Inc.

     

    “Net Capital” means,
at any time, “net capital” computed in accordance with Rule 15c3-1.

     

    “Net Cash Capital”
means, as of any date on a consolidated basis, (a) Shareholders’ Equity plus, without
duplication, (i) the mortgage Indebtedness permitted by Section 6.11(a)(ix),
(ii) the aggregate principal amount of any unsecured term debt of the Borrower
with a remaining maturity of more than one year that does not constitute a
liability of any Subsidiary, and (iii) any TARP Preferred Stock, minus Illiquid
Assets.

     

    “Net Cash Capital to Net
Liquid Assets Ratio” means, as of any date, the ratio of (a) Net Cash
Capital to (b) Net Liquid Assets.

     

    “Net Income” means,
for any computation period, with respect to the Borrower on a consolidated basis
with its Subsidiaries (other than any Subsidiary which is restricted from
declaring or paying dividends or otherwise advancing funds to its parent whether
by contract or otherwise), cumulative net income earned during such period as
determined in accordance with Agreement Accounting Principles.

     

    “Net Liquid Assets”
means, as of any date, the total assets of Borrower and its consolidated
Subsidiaries (other than RJ Bank) minus, without
duplication, (i) Illiquid Assets and (ii) any segregated assets.

     

    “Nonperforming Assets”
means nonperforming loans, real estate owned and other repossessed or
non-accrual assets.

     

    “Note” means any
promissory note issued at the request of a Lender pursuant to Section
2.10(e).

     

    “OCC” means the Office
of the Controller of the Currency and any successor entity.

     

    “OTS” means the Office
of Thrift Supervision and any successor entity.

     

    “Obligations” means
all unpaid principal of and accrued and unpaid interest on the Loans, all
accrued and unpaid fees and all expenses, reimbursements, indemnities and other
obligations of the Borrower to the Lenders or to any Lender, the Administrative
Agent or any indemnified party arising under the Existing Credit
Agreement.

     

    “Other Taxes” means
any and all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made
hereunder or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement.

     

    “PBGC” means the
Pension Benefit Guaranty Corporation referred to and defined in ERISA and any
successor entity performing similar functions.

     

    “Participant” has the
meaning set forth in Section
9.04.

     

    “Person” means any
natural person, corporation, firm, joint venture, partnership, limited liability
company, association, enterprise, trust or other entity or organization, or any
Governmental Authority.

     

    “Plan” means any
employee pension benefit plan (other than a Multiemployer Plan) subject to the
provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of
ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if
such plan were terminated, would under Section 4069 of ERISA be deemed to be) an
“employer” as defined in Section 3(5) of ERISA.

     

    “Prime Rate” means the
rate of interest per annum publicly announced from time to time by JPMorgan
Chase Bank, National Association, as its prime rate in effect at its office
located at 270 Park Avenue, New York, NY; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being
effective.

     

    “Property” of a Person
means any and all property, whether real, personal, tangible, intangible, or
mixed, of such Person, or other assets owned, leased or operated by such
Person.

     

    “RJA” means Raymond
James & Associates, Inc. and any successor entity.

     

    “RJ Bank” means
Raymond James Bank, FSB and any successor entity.

     

    “RJFS” means Raymond
James Financial Services, Inc. and any successor entity.

     

    “Register” has the
meaning set forth in Section
9.04.

     

    “Regulation D” means
Regulation D of the Board as from time to time in effect and any successor
thereto or other regulation or official interpretation of the Board relating to
reserve requirements applicable to depositary institutions.

     

    “Regulation T” means
Regulation T of the Board as from time to time in effect and shall include any
successor or other regulation or official interpretation of the Board relating
to the extension of credit by securities brokers and dealers for the purpose of
purchasing or carrying margin stocks applicable to such Persons.

     

    “Regulation U” means
Regulation U of the Board as from time to time in effect and any successor or
other regulation or official interpretation of the Board relating to the
extension of credit by banks for the purpose of purchasing or carrying margin
stocks applicable to such Persons.

     

    “Regulation X” means
Regulation X of the Board as from time to time in effect and shall include any
successor or other regulation or official interpretation of the Board relating
to the extension of credit by the specified lenders for the purpose of
purchasing or carrying margin stocks applicable to such Persons.

     

    “Related Parties”
means, with respect to any specified Person, such Person’s Affiliates and the
respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

     

    “Required Lenders”
means, at any time, Lenders having Revolving Loans and unused Commitments
representing at least 66.67% (two-thirds) of the sum of the total Revolving
Loans and unused Commitments at such time.

     

    “Revolving Loan” means
a Loan made by the Lenders to the Borrower pursuant to Article II
hereof.

     

    “Rule 15c3-1” means
Rule 15c3-1 of the General Rules and Regulations as promulgated by the
Commission under the Exchange Act, as such rule may be amended from time to
time, or any rule or regulation of the Commission which replaces Rule
15c3-1.

     

    “Rule 15c3-3” means
Rule 15c3-3 of the General Rules and Regulations as promulgated by the
Commission under the Exchange Act, as such rule may be amended from time to
time, or any rule or regulation of the Commission which replaces Rule
15c3-3.

     

    “SIPA” means the
Security Investor Protection Act of 1970, as amended.

     

    “SIPC” means the
Securities Investor Protection Corporation or any successor entity.

     

    “Self-Regulatory
Organization” has the meaning assigned to such term in Section 3(a)(26)
of the Exchange Act.

     

    “Shareholders’ Equity”
means shareholders’ equity (including TARP Preferred Stock) as shown in the
consolidated financial statements of the Borrower and its Subsidiaries at the
end of the most recent Fiscal Quarter prior to the date of
determination.

     

    “Statutory Reserve
Rate” means a fraction (expressed as a decimal), the numerator of which
is the number one and the denominator of which is the number one minus the
aggregate of the maximum reserve percentages (including any marginal, special,
emergency or supplemental reserves) expressed as a decimal established by the
Board to which the Administrative Agent is subject with respect to the Adjusted
LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board).  Such reserve percentages
shall include those imposed pursuant to such Regulation D.  Eurodollar
Loans shall be deemed to constitute eurocurrency funding and to be subject to
such reserve requirements without benefit of or credit for proration, exemptions
or offsets that may be available from time to time to any Lender under such
Regulation D or any comparable regulation.  The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change in
any reserve percentage.

     

    “Subsidiary” of a
Person means (a) any corporation more than 50% of the outstanding securities
having ordinary voting power of which shall at the time be owned or controlled,
directly or indirectly, by such Person or by one or more of its Subsidiaries or
by such Person and one or more of its Subsidiaries, (b) any partnership, limited
liability company, association, joint venture or similar business organization
more than 50% of the ownership interests having ordinary voting power of which
shall at the time be so owned or controlled, or (c) any other corporation or
entity which for financial reporting purposes is consolidated with the Borrower
in accordance with Agreement Accounting Principles.  Unless otherwise
expressly provided, all references herein to a “Subsidiary” shall mean a
Subsidiary of the Borrower.

     

    “Substantial Portion”
means, with respect to the Property of the Borrower and its Subsidiaries,
Property which (a) represents more than 10% of the consolidated assets of the
Borrower and its Subsidiaries as would be shown in the consolidated financial
statements of the Borrower and its Subsidiaries as at the beginning of the
twelve-month period ending with the month in which such determination is made,
or (b) is responsible for more than 15% of the consolidated net sales or Net
Income of the Borrower and its Subsidiaries as reflected in the financial
statements referred to in clause (a) above.

     

    “TARP” means the U.S.
Department of the Treasury Troubled Asset Relief Program.

     

    “TARP Preferred Stock”
means preferred stock of the Borrower issued to the U.S. Department of the
Treasury, as initial holder, pursuant to the TARP Capital Purchase
Program.

     

    “Tangible Net Worth”
means, at any date, the consolidated common stockholders’ equity of the Borrower
and its consolidated Subsidiaries, excluding TARP Preferred Stock, determined in
accordance with Agreement Accounting Principles, minus, without
duplication, (i) Intangible Assets and (ii)  net deferred tax
assets.

     

    “Taxes” means any and
all present or future taxes, duties, levies, imposts, deductions, charges or
withholdings imposed by any Governmental Authority.

     

    “Transactions” means
the execution, delivery and performance by the Borrower of this Agreement, the
borrowing of Loans and the use of proceeds thereof.

     

    “Type”, when used in
reference to any Loan or Borrowing, refers to whether the rate of interest on
such Loan, or on the Loans comprising such Borrowing, is determined by reference
to the Adjusted LIBO Rate or the Alternate Base Rate.

     

    “Wholly-Owned
Subsidiary” of a Person means (a) any Subsidiary all of the outstanding
voting securities of which shall at the time be owned or controlled, directly or
indirectly, by such Person or one or more Wholly-Owned Subsidiaries of such
Person, or by such Person and one or more Wholly-Owned Subsidiaries of such
Person, or (b) any partnership, limited liability company, association, joint
venture or similar business organization 100% of the ownership interests having
ordinary voting power of which shall at the time be so owned or
controlled.

     

    “Withdrawal Liability”
means liability to a Multiemployer Plan as a result of a complete or partial
withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

     

    SECTION
1.02 Classification of Loans and
Borrowings.  For purposes of this Agreement, Loans may be
classified and referred to by Type (e.g., a “Eurodollar
Loan”) or by Class and Type (e.g., a “Eurodollar
Revolving Loan”).  Borrowings also may be classified and referred to
by Class (e.g.,
a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g., a “Eurodollar
Revolving Borrowing”).

     

    SECTION
1.03 Terms
Generally.  The definitions of terms herein shall apply equally
to the singular and plural forms of the terms defined.  Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms.  The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without
limitation”.  The word “will” shall be construed to have the same
meaning and effect as the word “shall”.  Unless the context requires
otherwise (a) any definition of or reference to any agreement, instrument or
other document herein shall be construed as referring to such agreement,
instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements
or modifications set forth herein), (b) any reference herein to any Person shall
be construed to include such Person’s successors and assigns, (c) the words
“herein”, “hereof” and “hereunder”, and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular
provision hereof and (d) all references herein to Articles, Sections, Exhibits
and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement.

     

    SECTION
1.04 Accounting Terms; Agreement
Accounting Principles.  Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with Agreement Accounting Principles, as in effect from time to time;
provided that,
if the Borrower notifies the Administrative Agent that the Borrower requests an
amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in Agreement Accounting Principles or in the
application thereof on the operation of such provision (or if the Administrative
Agent notifies the Borrower that the Required Lenders request an amendment to
any provision hereof for such purpose), regardless of whether any such notice is
given before or after such change in Agreement Accounting Principles or in the
application thereof, then such provision shall be interpreted on the basis of
Agreement Accounting Principles as in effect and applied immediately before such
change shall have become effective until such notice shall have been withdrawn
or such provision  amended in accordance herewith.

     

    ARTICLE
II

     

    

     

    THE
CREDITS

     

    SECTION
2.01 Commitments.  Subject
to the terms and conditions set forth herein, each Lender agrees to make
Revolving Loans to the Borrower from time to time during the Availability Period
in an aggregate principal amount that will not result in (a) such Lender’s
Revolving Loans exceeding such Lender’s Commitment or (b) the sum of the total
Revolving Loans exceeding the total Commitments.  Within the foregoing
limits and subject to the terms and conditions set forth herein, the Borrower
may borrow, prepay and reborrow Revolving Loans.

     

    SECTION
2.02 Loans and
Borrowings.  (a) Each Revolving Loan shall be made as part of a
Borrowing consisting of Revolving Loans made by the Lenders ratably in
accordance with their respective Commitments.  The failure of any
Lender to make any Loan required to be made by it shall not relieve any other
Lender of its obligations hereunder; provided that the
Commitments of the Lenders are several and no Lender shall be responsible for
any other Lender’s failure to make Loans as required.

     

    (b) Subject
to Section
2.14, each Revolving Borrowing shall be comprised entirely of ABR Loans
or Eurodollar Loans as the Borrower may request in accordance
herewith.  Each Lender at its option may make any Eurodollar Loan by
causing any domestic or foreign branch or Affiliate of such Lender to make such
Loan; provided
that any exercise of such option shall not affect the obligation of the Borrower
to repay such Loan in accordance with the terms of this Agreement.

     

    (c) At the
commencement of each Interest Period for any Eurodollar Revolving Borrowing,
such Borrowing shall be in an aggregate amount that is an integral multiple of
$1,000,000 and not less than $5,000,000.  At the time that each ABR
Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that
is an integral multiple of $1,000,000 and not less than $5,000,000; provided that an ABR
Revolving Borrowing may be in an aggregate amount that is equal to the entire
unused balance of the total Commitments.  Borrowings of more than one
Type may be outstanding at the same time; provided that there
shall not at any time be more than a total of five (5) Eurodollar Revolving
Borrowings outstanding.

     

    (d) Notwithstanding
any other provision of this Agreement, the Borrower shall not be entitled to
request, or to elect to convert or continue, any Borrowing if the Interest
Period requested with respect thereto would end after the Maturity
Date.

     

    SECTION
2.03 Requests for Revolving
Borrowings.  To request a Revolving Borrowing, the Borrower
shall notify the Administrative Agent of such request by telephone (a) in the
case of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time,
three Business Days before the date of the proposed Borrowing or (b) in the case
of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the date
of the proposed Borrowing.  Each such telephonic Borrowing Request
shall be irrevocable and shall be confirmed promptly by hand delivery or
telecopy to the Administrative Agent of a written Borrowing Request in a form
approved by the Administrative Agent and signed by the Borrower.  Each
such telephonic and written Borrowing Request shall specify the following
information in compliance with Section
2.02:

     

    (i) the
aggregate amount of the requested Borrowing;

     

    (ii) the date
of such Borrowing, which shall be a Business Day;

     

    (iii) whether
such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

     

    (iv) in the
case of a Eurodollar Borrowing, the initial Interest Period to be applicable
thereto, which shall be a period contemplated by the definition of the term
“Interest Period”; and

     

    (v) the
location and number of the Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of Section
2.07.

     

    If no
election as to the Type of Revolving Borrowing is specified, then the requested
Revolving Borrowing shall be an ABR Borrowing.  If no Interest Period
is specified with respect to any requested Eurodollar Revolving Borrowing, then
the Borrower shall be deemed to have selected an Interest Period of one month’s
duration.  Promptly following receipt of a  Borrowing
Request in accordance with this Section, the Administrative Agent shall advise
each Lender of the details thereof and of the amount of such Lender’s Loan to be
made as part of the requested Borrowing.

     

    SECTION
2.04  [Intentionally
Omitted]

     

    SECTION
2.05  [Intentionally
Omitted]

     

    SECTION
2.06  [Intentionally
Omitted]

     

    SECTION
2.07 Funding of
Borrowings.  (a) Each Lender shall make each Loan to be made by
it hereunder on the proposed date thereof by wire transfer of immediately
available funds by 12:00 noon, New York City time, to the account of the
Administrative Agent most recently designated by it for such purpose by notice
to the Lenders.  The Administrative Agent will make such Loans
available to the Borrower by promptly crediting the amounts so received, in like
funds, to an account of the Borrower maintained with the Administrative Agent in
New York City and designated by the Borrower in the applicable Borrowing
Request.

     

    (b) Unless
the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available on such date in
accordance with paragraph (a) of this Section and may, in reliance upon such
assumption, make available to the Borrower a corresponding amount.  In
such event, if a Lender has not in fact made its share of the applicable
Borrowing available to the Administrative Agent, then the applicable Lender and
the Borrower severally agree to pay to the Administrative Agent forthwith on
demand such corresponding amount with interest thereon, for each day from and
including the date such amount is made available to the Borrower to but
excluding the date of payment to the Administrative Agent, at (i) in the case of
such Lender, the greater of the Federal Funds Effective Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules
on interbank compensation or (ii) in the case of the Borrower, the interest rate
applicable to ABR Loans.  If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Loan
included in such Borrowing.

     

    SECTION
2.08 Interest
Elections.  (a)  Each Revolving Borrowing initially
shall be of the Type specified in the applicable Borrowing Request and, in the
case of a Eurodollar Revolving Borrowing, shall have an initial Interest Period
as specified in such Borrowing Request.  Thereafter, the Borrower may
elect to convert such Borrowing to a different Type or to continue such
Borrowing and, in the case of a Eurodollar Revolving Borrowing, may elect
Interest Periods therefor, all as provided in this Section.  The
Borrower may elect different options with respect to different portions of the
affected Borrowing, in which case each such portion shall be allocated ratably
among the Lenders holding the Loans comprising such Borrowing, and the Loans
comprising each such portion shall be considered a separate
Borrowing.

     

    (b) To make
an election pursuant to this Section, the Borrower shall notify the
Administrative Agent of such election by telephone by the time that a Borrowing
Request would be required under Section 2.03 if the
Borrower were requesting a Revolving Borrowing of the Type resulting from such
election to be made on the effective date of such election.  Each such
telephonic Interest Election Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Interest Election Request in a form approved by the Administrative Agent and
signed by the Borrower.

     

    (c) Each
telephonic and written Interest Election Request shall specify the following
information in compliance with Section
2.02:

     

    (i) the
Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the
portions thereof to be allocated to each resulting Borrowing (in which case the
information to be specified pursuant to clauses (iii) and (iv) below shall be
specified for each resulting Borrowing);

     

    (ii) the
effective date of the election made pursuant to such Interest Election Request,
which shall be a Business Day;

     

    (iii) whether
the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;
and

     

    (iv) if the
resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

     

    If any
such Interest Election Request requests a Eurodollar Borrowing but does not
specify an Interest Period, then the Borrower shall be deemed to have selected
an Interest Period of one month’s duration.

     

    (d) Promptly
following receipt of an Interest Election Request, the Administrative Agent
shall advise each Lender of the details thereof and of such Lender’s portion of
each resulting Borrowing.

     

    (e) If the
Borrower fails to deliver a timely Interest Election Request with respect to a
Eurodollar Revolving Borrowing prior to the end of the Interest Period
applicable thereto, then, unless such Borrowing is repaid as provided herein, at
the end of such Interest Period such Borrowing shall be converted to an ABR
Borrowing.  Notwithstanding any contrary provision hereof, if an Event
of Default has occurred and is continuing and the Administrative Agent, at the
request of the Required Lenders, so notifies the Borrower, then, so long as an
Event of Default is continuing (i) no outstanding Revolving Borrowing may be
converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each
Eurodollar Revolving Borrowing shall be converted to an ABR Borrowing at the end
of the Interest Period applicable thereto.

     

    SECTION
2.09 Termination and Reduction of
Commitments.  (a) Unless previously terminated, the Commitments
shall terminate on the Maturity Date.

     

    (b) The
Borrower may at any time terminate, or from time to time reduce, the
Commitments; provided that (i)
each reduction of the Commitments shall be in an amount that is an integral
multiple of $1,000,000 and not less than $5,000,000 and (ii) the Borrower shall
not terminate or reduce the Commitments if, after giving effect to any
concurrent prepayment of the Loans in accordance with Section 2.11, the sum
of the Revolving Loans would exceed the total Commitments.

     

    (c) The
Borrower shall notify the Administrative Agent of any election to terminate or
reduce the Commitments under paragraph (b) of this Section at least three
Business Days prior to the effective date of such termination or reduction,
specifying such election and the effective date thereof.  Promptly
following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof.  Each notice delivered by the
Borrower pursuant to this Section shall be irrevocable; provided that a
notice of termination of the Commitments delivered by the Borrower may state
that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Borrower (by notice
to the Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied.  Any termination or reduction of the
Commitments shall be permanent.  Each reduction of the Commitments
shall be made ratably among the Lenders in accordance with their respective
Commitments.

     

    SECTION
2.10 Repayment of Loans; Evidence
of Debt.  (a) The Borrower hereby unconditionally promises to
pay to the Administrative Agent for the account of each Lender the then unpaid
principal amount of each Revolving Loan on the Maturity Date.

     

    (b) Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Borrower to such Lender resulting
from each Loan made by such Lender, including the amounts of principal and
interest payable and paid to such Lender from time to time
hereunder.

     

    (c) The
Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the Type thereof and the Interest Period
applicable thereto, (ii) the amount of any principal or interest due and payable
or to become due and payable from the Borrower to each Lender hereunder and
(iii) the amount of any sum received by the Administrative Agent hereunder for
the account of the Lenders and each Lender’s share thereof.

     

    (d) The
entries made in the accounts maintained pursuant to paragraph (b) or (c) of this
Section shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that the
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligation of the Borrower
to repay the Loans in accordance with the terms of this Agreement.

     

    (e) Any
Lender may request that Loans made by it be evidenced by a promissory
note.  In such event, the Borrower shall prepare, execute and deliver
to such Lender a promissory note payable to the order of such Lender (or, if
requested by such Lender, to such Lender and its registered assigns) and in a
form approved by the Administrative Agent.  Thereafter, the Loans
evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 9.04) be
represented by one or more promissory notes in such form payable to the order of
the payee named therein (or, if such promissory note is a registered note, to
such payee and its registered assigns).

     

    (f) If at any
time the aggregate Revolving Loans of the Lenders exceeds the aggregate
Commitments of the Lenders, the Borrower shall immediately prepay the Revolving
Loans in the amount of such excess.

     

    (g) No
Revolving Loan shall be paid or pre-paid with any proceeds from the FDIC
Guaranteed Term Notes or any other FDIC-guaranteed debt.

     

    SECTION
2.11 Prepayment of
Loans.  (a) The Borrower shall have the right at any time and
from time to time to prepay any Borrowing in whole or in part, subject to prior
notice in accordance with paragraph (b) of this Section.

     

    (b) The
Borrower shall notify the Administrative Agent by telephone (confirmed by
telecopy) of any prepayment hereunder (i) in the case of prepayment of a
Eurodollar Revolving Borrowing, not later than 11:00 a.m., New York City time,
three Business Days before the date of prepayment or (ii) in the case of
prepayment of an ABR Revolving Borrowing, not later than 11:00 a.m., New York
City time, one Business Day before the date of prepayment.  Each such
notice shall be irrevocable and shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a
notice of prepayment is given in connection with a conditional notice of
termination of the Commitments as contemplated by Section 2.09(c), then
such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section
2.09(c).  Promptly following receipt of any such notice
relating to a Revolving Borrowing, the Administrative Agent shall advise the
Lenders of the contents thereof.  Each partial prepayment of any
Revolving Borrowing shall be in an amount that would be permitted in the case of
an advance of a Revolving Borrowing of the same Type as provided in Section
2.02.  Each prepayment of a Revolving Borrowing shall be
applied ratably to the Loans included in the prepaid
Borrowing.  Prepayments shall be accompanied by accrued interest to
the extent required by Section
2.13.

     

    SECTION
2.12 Fees.  (a)  The
Borrower agrees to pay to the Administrative Agent for the account of each
Lender a commitment fee, which shall accrue at a rate per annum equal to the
Applicable Commitment Fee Rate on the daily average unused amount of the
Commitment of such Lender during the period from and including February 6, 2009
to but excluding the date on which such Commitment
terminates.  Accrued commitment fees shall be payable in arrears on
the last day of March, June, September and December of each year and on the date
on which the Commitments terminate, commencing on the first such date to occur
after the date hereof.  All commitment fees shall be computed on the
basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).

     

    (b) The
Borrower agrees to pay to the Administrative Agent, for its own account, fees
payable in the amounts and at the times separately agreed upon between the
Borrower and the Administrative Agent.

     

    (c) All
commitment fees payable hereunder shall be paid on the dates due, in immediately
available funds, to the Administrative Agent for distribution to the
Lenders.  Fees paid shall not be refundable under any
circumstances.

     

    SECTION
2.13 Interest.  (a)
The Loans comprising each ABR Borrowing shall bear interest at the Alternate
Base Rate plus the Applicable Margin.

     

    (b) The Loans
comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus the Applicable
Margin.

     

    (c)  [Intentionally
Omitted]

     

    (d) Notwithstanding
the foregoing, if any principal of or interest on any Loan or any fee or other
amount payable by the Borrower hereunder is not paid when due, whether at stated
maturity, upon acceleration or otherwise, such overdue amount shall bear
interest, after as well as before judgment, at a rate per annum equal to (i) in
the case of overdue principal of any Loan, 2% plus the  rate otherwise
applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2% plus the rate applicable to ABR
Loans as provided in paragraph (a) of this Section.

     

    (e) Accrued
interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and upon termination of the Commitments; provided that (i)
interest accrued pursuant to paragraph (d) of this Section shall be payable on
demand, (ii) in the event of any repayment or prepayment of any Loan (other than
a prepayment of an ABR Loan prior to the end of the Availability Period),
accrued interest on the principal amount repaid or prepaid shall be payable on
the date of such repayment or prepayment and (iii) in the event of any
conversion of any Eurodollar Loan prior to the end of the current Interest
Period therefor, accrued interest on such Loan shall be payable on the effective
date of such conversion.

     

    (f) All
interest hereunder shall be computed on the basis of a year of 360 days, except
that interest computed by reference to the Alternate Base Rate at times when the
Alternate Base Rate is based on the Prime Rate shall be computed on the basis of
a year of 365 days (or 366 days in a leap year), and in each case shall be
payable for the actual number of days elapsed (including the first day but
excluding the last day).  The applicable Alternate Base Rate or
Adjusted LIBO Rate  shall be determined by the Administrative Agent,
and such determination shall be conclusive absent manifest error.

     

    SECTION
2.14 Alternate Rate of
Interest.  If prior to the commencement of any Interest Period
for a Eurodollar Borrowing:

     

    (a) the
Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining
the Adjusted LIBO Rate for such Interest Period; or

     

    (b) the
Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
Rate for such Interest Period will not adequately and fairly reflect the cost to
such Lenders (or Lender) of making or maintaining their Loans (or its Loan)
included in such Borrowing for such Interest Period;

     

    then the
Administrative Agent shall give notice thereof to the Borrower and the Lenders
by telephone or telecopy as promptly as practicable thereafter and, until the
Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Revolving Borrowing to, or
continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be
ineffective and (ii) if any Borrowing Request requests a Eurodollar Revolving
Borrowing, such Borrowing shall be made as an ABR Borrowing; provided that if the
circumstances giving rise to such notice affect only one Type of Borrowings,
then the other Type of Borrowings shall be permitted.

     

    SECTION
2.15 Increased
Costs.  (a) If any Change in Law shall:

     

    (i) impose,
modify or deem applicable any reserve, special deposit or similar requirement
against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO
Rate); or

     

    (ii) impose on
any Lender or the London interbank market any other condition affecting this
Agreement or Eurodollar Loans made by such Lender;

     

    and the
result of any of the foregoing shall be to increase the cost to such Lender of
making or maintaining any Eurodollar Loan (or of maintaining its obligation to
make any such Loan) or to increase the cost to such Lender or to reduce the
amount of any sum received or receivable by such Lender hereunder (whether of
principal, interest or otherwise), then the Borrower will pay to such Lender
such additional amount or amounts as will compensate such Lender for such
additional costs incurred or reduction suffered.

     

    (b) If any
Lender determines that any Change in Law regarding capital requirements has or
would have the effect of reducing the rate of return on such Lender’s capital or
on the capital of such Lender’s holding company, if any, as a consequence of
this Agreement or the Loans made by such Lender, to a level below that which
such Lender or such Lender’s holding company could have achieved but for such
Change in Law (taking into consideration such Lender’s policies and the policies
of such Lender’s holding company with respect to capital adequacy), then from
time to time the Borrower will pay to such Lender such additional amount or
amounts as will compensate such Lender or such Lender’s holding company for any
such reduction suffered.

     

    (c) A
certificate of a Lender setting forth the amount or amounts necessary to
compensate such Lender or its holding company, as the case may be, as specified
in paragraph (a) or (b) of this Section shall be delivered to the Borrower and
shall be conclusive absent manifest error.  The Borrower shall pay
such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

     

    (d) Failure
or delay on the part of any Lender to demand compensation pursuant to this
Section shall not constitute a waiver of such Lender’s right to demand such
compensation; provided that the
Borrower shall not be required to compensate a Lender pursuant to this Section
for any increased costs or reductions incurred more than 270 days prior to the
date that such Lender notifies the Borrower of the Change in Law giving rise to
such increased costs or reductions and of such Lender’s intention to claim
compensation therefor; provided further that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the 270-day period referred to above shall be extended to include the
period of retroactive effect thereof.

     

    SECTION
2.16 Break Funding
Payments.  In the event of (a) the payment of any principal of
any Eurodollar Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (b) the conversion of
any Eurodollar Loan other than on the last day of the Interest Period applicable
thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar
Loan on the date specified in any notice delivered pursuant hereto (regardless
of whether such notice may be revoked under Section 2.11(b) and
is revoked in accordance therewith) or (d) the assignment of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto as a result
of a request by the Borrower pursuant to Section 2.19, then,
in any such event, the Borrower shall compensate each Lender for the loss, cost
and expense attributable to such event.  In the case of a Eurodollar
Loan, such loss, cost or expense to any Lender shall be deemed to include an
amount determined by such Lender to be the excess, if any, of (i) the amount of
interest which would have accrued on the principal amount of such Loan had such
event not occurred, at the Adjusted LIBO Rate that would have been applicable to
such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for
such Loan), over (ii) the amount of interest which would accrue on such
principal amount for such period at the interest rate which such Lender would
bid were it to bid, at the commencement of such period, for dollar deposits of a
comparable amount and period from other banks in the eurodollar
market.  A certificate of any Lender setting forth any amount or
amounts that such Lender is entitled to receive pursuant to this Section shall
be delivered to the Borrower and shall be conclusive absent manifest
error.  The Borrower shall pay such Lender the amount shown as due on
any such certificate within 10 days after receipt thereof.

     

    SECTION
2.17 Taxes.  (a)
Any and all payments by or on account of any obligation of the Borrower
hereunder shall be made free and clear of and without deduction for any
Indemnified Taxes or Other Taxes; provided that if the
Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent or the
Lender (as the case may be) receives an amount equal to the sum it would have
received had no such deductions been made, (ii) the Borrower shall make such
deductions and (iii) the Borrower shall pay the full amount deducted to the
relevant Governmental Authority in accordance with applicable law.

     

    (b) In
addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

     

    (c) The
Borrower shall indemnify the Administrative Agent and each Lender within 10 days
after written demand therefor, for the full amount of any Indemnified Taxes or
Other Taxes paid by the Administrative Agent or such Lender on or with respect
to any payment by or on account of any obligation of the Borrower hereunder
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) and any penalties, interest
and reasonable expenses arising there from or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority.  A certificate as to
the amount of such payment or liability delivered to the Borrower by a Lender,
or by the Administrative Agent on its own behalf or on behalf of a Lender, shall
be conclusive absent manifest error.

     

    (d) As soon
as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably satisfactory
to the Administrative Agent.

     

    (e) Any
Foreign Lender that is entitled to an exemption from or reduction of withholding
tax under the law of the jurisdiction in which the Borrower is located, or any
treaty to which such jurisdiction is a party, with respect to payments under
this Agreement shall deliver to the Borrower (with a copy to the Administrative
Agent), at the time or times prescribed by applicable law, such properly
completed and executed documentation prescribed by applicable law or reasonably
requested by the Borrower as will permit such payments to be made without
withholding or at a reduced rate.

     

    (f) If the
Administrative Agent or a Lender determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been
indemnified by the Borrower or with respect to which the Borrower has paid
additional amounts pursuant to this Section 2.17, it
shall pay over such refund to the Borrower (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section 2.17 with
respect to the Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of the Administrative Agent or such Lender and without
interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund); provided, that the
Borrower, upon the request of the Administrative Agent or such Lender, agrees to
repay the amount paid over to the Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender in the event the Administrative Agent or
such Lender is required to repay such refund to such Governmental Authority.
This Section shall not be construed to require the Administrative Agent or any
Lender to make available its tax returns (or any other information relating to
its taxes which it deems confidential) to the Borrower or any other
Person.

     

    SECTION
2.18 Payments Generally; Pro Rata
Treatment; Sharing of Set-offs.  (a) The Borrower shall make
each payment required to be made by it hereunder (whether of principal, interest
or fees, or of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise)
prior to 12:00 noon, New York City time, on the date when due, in immediately
available funds, without set off or counterclaim.  Any amounts
received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon.  All such
payments shall be made to the Administrative Agent at its offices at 270 Park
Avenue, New York, New York, except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made
directly to the Persons entitled thereto.  The Administrative Agent
shall distribute any such payments received by it for the account of any other
Person to the appropriate recipient promptly following receipt
thereof.  If any payment hereunder shall be due on a day that is not a
Business Day, the date for payment shall be extended to the next succeeding
Business Day, and, in the case of any payment accruing interest, interest
thereon shall be payable for the period of such extension.  All
payments hereunder shall be made in dollars.

     

    (b) If at any
time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, interest and fees then due
hereunder, such funds shall be applied (i) first, towards payment of interest
and fees then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of interest and fees then due to such parties, and
(ii) second, towards payment of principal then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of principal then due to
such parties.

     

    (c) If any
Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its loans
hereunder resulting in such Lender receiving payment of a greater proportion of
the aggregate amount of its loans hereunder and accrued interest thereon than
the proportion received by any other Lender, then the Lender receiving such
greater proportion shall purchase (for cash at face value) participations in the
loans hereunder of other Lenders to the extent necessary so that the benefit of
all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective loans
hereunder; provided that (i) if
any such participations are purchased and all or any portion of the payment
giving rise thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest, and
(ii) the provisions of this paragraph shall not be construed to apply to any
payment made by the Borrower pursuant to and in accordance with the express
terms of this Agreement or any payment obtained by a Lender as consideration for
the assignment of or sale of a participation in any of its loans hereunder to
any assignee or participant, other than to the Borrower or any Subsidiary or
Affiliate thereof (as to which the provisions of this paragraph shall
apply).  The Borrower consents to the foregoing and agrees, to the
extent it may effectively do so under applicable law, that any Lender acquiring
a participation pursuant to the foregoing arrangements may exercise against the
Borrower rights of set-off and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.

     

    (d) Unless
the Administrative Agent shall have received notice from the Borrower prior to
the date on which any payment is due to the Administrative Agent for the account
of the Lenders that the Borrower will not make such payment, the Administrative
Agent may assume that the Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to the
Lenders, the amount due.  In such event, if the Borrower has not in
fact made such payment, then each of the Lenders severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such
Lender with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Effective Rate and a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation.

     

    (e) If any
Lender shall fail to make any payment required to be made by it pursuant to
Section 2.07(b), 2.18(d) or 9.03(c), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Lender to satisfy such Lender’s obligations under
such Sections until all such unsatisfied obligations are fully
paid.

     

    SECTION
2.19 Mitigation Obligations;
Replacement of Lenders.  (a) If any Lender requests
compensation under Section 2.15, or if
the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.17, then
such Lender shall use reasonable efforts to designate a different lending office
for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may
be, in the future and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be disadvantageous to such
Lender.  The Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or
assignment.

     

    (b) If any
Lender requests compensation under Section 2.15, or if
the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.17, or if
any Lender becomes a Defaulting Lender, then the Borrower may, at its sole
expense and effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance with
and subject to the restrictions contained in Section 9.04), all
its interests, rights and obligations under this Agreement to an assignee that
shall assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment); provided that (i) the
Borrower shall have received the prior written consent of the Administrative
Agent, which consent shall not unreasonably be withheld, (ii) such Lender shall
have received payment of an amount equal to the outstanding principal of its
Loans, accrued interest thereon, accrued fees and all other amounts payable to
it hereunder, from the assignee (to the extent of such outstanding principal and
accrued interest and fees) or the Borrower (in the case of all other amounts)
and (iii) in the case of any such assignment resulting from a claim for
compensation under Section 2.15 for
payments required to be made pursuant to Section 2.17, such
assignment will result in a reduction in such compensation or
payments.  A Lender shall not be required to make any such assignment
and delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrower to require such assignment
and delegation cease to apply.

     

    SECTION
2.20 Extension of Maturity
Date.  The Borrower may request an extension of the Maturity
Date by submitting a request for an extension to the Administrative Agent (an
“Extension
Request”) no more than 45 days, but no less than 30 days, prior to the
then effective Maturity Date.  Each extension effected pursuant to
this Section
2.20 shall commence on the then effective Maturity Date (the “Extension
Date”).  The Extension Request must specify the new Maturity
Date requested by the Borrower, which date shall be no more than 364 days (the
“Extension
Period”) after the Extension Date, including the Extension Date as one of
the days in the calculation of the days elapsed.  Promptly upon
receipt of an Extension Request, the Administrative Agent shall notify each
Lender of the contents thereof and shall request each Lender to approve the
Extension Request.  Each Lender approving the Extension Request shall
deliver its written consent to the Administrative Agent no earlier than 30 days
prior to the then effective Maturity Date and no later than 20 days after
receipt of the Extension Request.  In the event that a Lender shall
fail to notify the Administrative Agent within such period as to whether it
agrees to the Extension Request, such Lender shall be deemed to have refused the
Extension Request.  If the consent of the Required Lenders is timely
received by the Administrative Agent, the new Maturity Date specified in the
Extension Request shall become effective on the Extension Date as to such
consenting Lenders only (and not as to any Lender which has not consented to
such extension), and the Administrative Agent shall promptly notify the Borrower
and each consenting Lender of the new Maturity Date and new aggregate amount of
the Lenders’ Commitments.  Notwithstanding anything contained in this
Agreement to the contrary, (a) all obligations hereunder owing to the
non-extending Lenders shall be due and payable on the Maturity Date without
giving effect to any requested extension, (b) the aggregate amount of the
Lenders’ Commitments as of the commencement of the Extension Period shall be
reduced to an amount equal to the sum of the Commitments of the Lenders
ultimately consenting to the Extension Request, and (c) each Lender may, in its
sole discretion, grant or deny its consent with respect to any proposed
Extension Request.  Any Lender not granting the Extension Request
shall, if the Borrower has selected an assignee for such Lender reasonably
acceptable to the Administrative Agent prior to the Extension Date, promptly
assign to such assignee its rights and obligations hereunder in respect of all
or that portion of such Lender’s Commitment as such assignee is willing to
accept, all in accordance with Section
9.04.

     

    SECTION
2.21 Defaulting
Lenders.

     

    Notwithstanding
any provision of this Agreement to the contrary, if any Lender becomes a
Defaulting Lender, then the following provisions shall apply for so long as such
Lender is a Defaulting Lender:

    

    (a) fees
shall cease to accrue on the unfunded portion of the Commitment of such
Defaulting Lender pursuant to Section
2.12(a);

     

    (b) the
Commitment and Revolving Credit Loans of such Defaulting Lender shall not be
included in determining whether all Lenders or the Required Lenders have taken
or may take any action hereunder (including any consent to any amendment or
waiver pursuant to Section 9.02), provided that any
waiver, amendment or modification requiring the consent of all Lenders or each
affected Lender which affects such Defaulting Lender differently than other
affected Lenders shall require the consent of such Defaulting
Lender;

     

    (c) any
amount payable to such Defaulting Lender hereunder (whether on account of
principal, interest, fees or otherwise and including any amount that would
otherwise be payable to such Defaulting Lender pursuant to Section 2.18(c) but
excluding Section
2.19 and the last sentence of Section 2.20) shall,
in lieu of being distributed to such Defaulting Lender, be retained by the
Administrative Agent in a segregated account and, subject to any applicable
requirements of law, be applied at such time or times as may be determined by
the Administrative Agent (i) first, to the payment
of any amounts owing by such Defaulting Lender to the Administrative Agent
hereunder, (ii) second, to the
funding of any Loan in respect of which such Defaulting Lender has failed to
fund its portion thereof as required by this Agreement, as determined by the
Administrative Agent, (iii) third, if so
determined by the Administrative Agent and the Borrower, held in such account as
cash collateral for future funding obligations of the Defaulting Lender under
this Agreement, (iv) fourth, pro rata, to
the payment of any amounts owing to the Borrower or the Lenders as a result of
any judgment of a court of competent jurisdiction obtained by the Borrower or
any Lender against such Defaulting Lender as a result of such Defaulting
Lender’s breach of its obligations under this Agreement, and (v) fifth, to such
Defaulting Lender or as otherwise directed by a court of competent jurisdiction;
provided that
if such payment is (x) a prepayment of the principal amount of any Loans which a
Defaulting Lender has funded its participation obligations and (y) made at a
time when the conditions set forth in Section 4.02 are
satisfied, such payment shall be applied solely to prepay the Loans of all
non-Defaulting Lenders pro rata prior to being applied to the prepayment of any
Loans of any Defaulting Lender.

     

    In the
event that the Administrative Agent and the Borrower each agrees that a
Defaulting Lender has adequately remedied all matters that caused such Lender to
be a Defaulting Lender, then such Lender shall purchase at par such of the Loans
of the other Lenders as the Administrative Agent shall determine may be
necessary in order for such Lender to hold such Loans in accordance with its
Applicable Percentage.

     

    

     

    

     

    ARTICLE
III

     

    

     

    [Intentionally
Omitted]

     

    

     

    

     

    ARTICLE
IV

     

    

     

    CONDITIONS
PRECEDENT

     

    SECTION
4.01 Effective
Date.  The obligations of the Lenders to make Loans hereunder
shall not become effective until the date on which each of the following
conditions is satisfied (or waived in accordance with Section 9.02) by
delivery of the following documents:

     

    (a) Charter Documents; Good
Standing Certificates.  Copies of the Restated Articles of
Incorporation of the Borrower, together with all amendments thereto, certified
by the Secretary of State of Florida, together with (i) good standing
certificates (A) as to the Borrower, from the State of Florida and (B) as to
RJA, from the States of Florida, New York and Michigan, and (ii) a certificate
of corporate existence as to RJ Bank from the OTS.

     

    (b) By-Laws and
Resolutions.  Copies, certified by the Secretary or Assistant
Secretary of the Borrower, of its by-laws and of its Board of Directors’
resolutions authorizing the execution, delivery and performance of the Loan
Documents to which the Borrower is a party.

     

    (c) Secretary’s
Certificate.  An incumbency certificate, executed by the
Secretary or Assistant Secretary of the Borrower, which shall identify by name
and title and bear the signature of the officers of the Borrower authorized to
sign the Loan Documents and to make borrowings hereunder, upon which certificate
the Administrative Agent and the Lenders shall be entitled to rely until
informed of any change in writing by the Borrower.

     

    (d) Officer’s
Certificate.  A certificate, dated the date of this Agreement,
signed by the chief financial officer of the Borrower, in form and substance
satisfactory to the Administrative Agent, to the effect that: (i) on such date
(both before and after giving effect to the making of any Loans hereunder) no
Default or Event of Default has occurred and is continuing and (ii) each of the
representations and warranties set forth in Article V of this
Agreement is true and correct on and as of such date.

     

    (e) Legal
Opinion.  A favorable written opinion of Paul L. Matecki, Esq.,
Senior Vice President-General Counsel, Director of Compliance of the Borrower,
addressed to the Administrative Agent and the Lenders in form and substance
acceptable to the Administrative Agent and its counsel.

     

    (f) Loan
Documents.  Executed originals of this Agreement, each of the
other Loan Documents, together with all schedules, exhibits, certificates,
instruments, opinions, documents and financial statements required to be
delivered pursuant hereto and thereto.

     

    (g) Reports.  Copies
of the RJA/RJFS FOCUS Reports and the RJ Bank Financial Report as at December
31, 2008.

     

    (h) Payment of
Fees.  The Borrower shall have paid all accrued and unpaid
fees, costs and expenses to the extent due and payable on or prior to the
execution of this Agreement.

     

    (i) Other.  Such
other documents as the Administrative Agent, any Lender or their counsel may
have reasonably requested.

     

    The
Administrative Agent shall notify the Borrower and the Lenders of the Effective
Date, and such notice shall be conclusive and binding.

     

    SECTION
4.02 Each
Borrowing.  The obligation of each Lender to make a Loan on the
occasion of any Borrowing is subject to the satisfaction of the following
conditions:

     

    (a) The
Administrative Agent shall have received written evidence of the U.S. Department
of the Treasury’s approval of Borrower’s application to participate in the TARP
Capital Purchase Program;

     

    (b) The
representations and warranties contained in Article V are true
and correct as of such date of Borrowing, including the representations and
warranties set forth in Section 5.06 and the
first sentence of Section
5.08;

     

    (c) At the
time of and immediately after giving effect to such Borrowing, no Default or
Event of Default shall have occurred and be continuing; and

     

    (d) A
Borrowing/Interest Election Request shall have been properly
submitted.

     

    Each
Borrowing/Interest Election Request with respect to each such Borrowing shall
constitute a representation and warranty by the Borrower that the conditions
contained in Section
4.02 have been satisfied.  Any Lender may require a duly
completed Compliance Certificate as a condition to making a Loan.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
V

     

    

     

    REPRESENTATIONS
AND WARRANTIES

     

    The
Borrower represents and warrants to the Administrative Agent and the Lenders
that:

     

    SECTION
5.01 Corporate Existence; Conduct
of Business.  Each of the Borrower and each Material Subsidiary
(a) is a corporation duly incorporated, validly existing and in good standing
under the laws of its jurisdiction of incorporation, (b) is duly qualified and
in good standing as a foreign corporation in each jurisdiction in which its
ownership or lease of property or the conduct of its business requires such
qualification, except where failure to be so qualified will not have a Material
Adverse Effect, and (c) has all requisite corporate power, and possesses all
licenses, registrations and authorizations from and with any Governmental
Authority, Self-Regulatory Organization or securities exchange, necessary or
material to the conduct of its business as now or presently proposed to be
conducted.  RJA and RJFS each is (i) duly registered with the
Commission as a broker-dealer under the Exchange Act, (ii) a member in good
standing of the FINRA and, as to RJA,  a member organization in good
standing of the NYSE, (iii) not in arrears in regard to any assessment made upon
it by the SIPC, and (iv) has received no notice from the Commission, FINRA,
MSRB, CFTC, FDIC or any other Governmental Authority, Self-Regulatory
Organization or securities exchange of any alleged rule violation or other
circumstance which could reasonably be expected to have a Material Adverse
Effect, except as disclosed in the Financial Statements.

     

    SECTION
5.02 Authorization and
Validity.  The Borrower has all requisite power and authority
(corporate and otherwise) and legal right to execute and deliver each of the
Loan Documents and to perform its obligations thereunder.  The
execution and delivery by the Borrower of the Loan Documents and the performance
of its obligations thereunder have been duly authorized by proper corporate
proceedings and the Loan Documents constitute legal, valid and binding
obligations of the Borrower enforceable against the Borrower in accordance with
their terms, except as enforceability may be limited by bankruptcy, insolvency
or similar laws affecting the enforcement of creditors’ rights generally or by
general principles of equity limiting the availability of equitable
remedies.

     

    SECTION
5.03 Compliance with Laws and
Contracts.  The Borrower and its Subsidiaries (including RJA,
RJFS and RJ Bank) have complied in all material respects with all applicable
laws, statutes, and rules, regulations, orders and decrees or restrictions of
any Governmental Authority, Self-Regulatory Organization or securities exchange
having jurisdiction over the conduct of their respective businesses or the
ownership of their respective properties (including, without limitation, the
Exchange Act, the Advisers Act, the Investment Company Act, the CEA,
Environmental Laws, and the applicable rules and regulations of the Commission,
the Board, FINRA, NYSE, MSRB, CFTC, FDIC, OTS and OCC), except where the failure
to so comply could not reasonably be expected to have a Material Adverse
Effect.  Without limiting the foregoing, the Borrower and its Material
Subsidiaries are in compliance with all applicable capital requirements of all
Governmental Authorities (including, without limitation, Rule 15c3-1 and OTS
(or, as applicable, OCC and Board) capital requirements).  Neither the
execution and delivery by the Borrower of the Loan Documents, the application of
the proceeds of the Loans, the consummation of any transaction contemplated by
the Loan Documents, nor compliance with the provisions of the Loan
Documents  will, or at the relevant time did, (a) violate any law,
rule, regulation (including Regulations T, U and X), order, writ, judgment,
injunction, decree or award binding on the Borrower or any Subsidiary, (b)
violate or conflict with the Borrower’s or any Subsidiary’s charter, articles or
certificate of incorporation or by-laws, (c) violate the provisions of or
require the approval or consent of any party to any indenture, instrument or
agreement to which the Borrower or any Subsidiary is a party or is subject, or
by which it, or its Property, is bound, or conflict with or constitute a default
thereunder, or result in the creation or imposition of any Lien (other than
Liens permitted by Section 6.16) in, of
or on the Property of the Borrower or any Subsidiary pursuant to the terms of
any such indenture, instrument or agreement, or (d) require the consent or
approval of any Person, except for any violation of, or failure to obtain an
approval or consent required under, any such indenture, instrument or agreement
that could not have a Material Adverse Effect.

     

    SECTION
5.04 Governmental
Consents.  No order, consent, approval, qualification, license,
authorization, or validation of, or filing, recording or registration with, or
exemption by, or other action in respect of, any Governmental Authority,
Self-Regulatory Organization or securities exchange is necessary or required in
connection with the execution, delivery, consummation or performance of, or the
legality, validity, binding effect or enforceability of, any of the Loan
Documents, the application of the proceeds of the Loans, or the consummation of
any other transaction contemplated by the Loan Documents.  Neither the
Borrower nor any Subsidiary is in default under or in violation of any foreign,
Federal, state or local law, rule, regulation, order, writ, judgment,
injunction, decree or award binding upon or applicable to the Borrower or such
Subsidiary, in each case the consequence of which default or violation could
reasonably be expected to have a Material Adverse Effect.

     

    SECTION
5.05 Financial
Statements.  The Borrower has heretofore furnished to each of
the Lenders the September 30, 2008 audited consolidated financial statements of
the Borrower and its Subsidiaries (collectively, the “Financial
Statements”).  The Borrower has also heretofore furnished to
each of the Lenders (a) the March 31, 2008, June 30, 2008, September 30, 2008
and December 31, 2008 quarterly FOCUS Reports of RJA and RJFS (the “RJA/RJFS FOCUS
Reports”) and (b) the March 31, 2008, June 30, 2008, September 30, 2008
and December 31, 2008 quarterly Thrift Financial Reports of RJ Bank (the “RJ Bank Financial
Reports”). Each of the Financial Statements was prepared in accordance
with Agreement Accounting Principles and fairly presents the consolidated
financial condition, results of operations, changes in Shareholders’ Equity and
cash flows of the Borrower and its Subsidiaries at such dates and for the
respective periods then ended. The RJA/RJFS FOCUS Reports are correct and
complete in all material respects and conform in all material respects to
Exchange Act requirements and applicable Commission rules and
regulations.  The RJ Bank Financial Reports are correct and complete
in all material respects and conform in all material respects to applicable OTS
(or, as applicable, OCC) rules and regulations.

     

    SECTION
5.06 Material Adverse
Change.  No material adverse change in the business, Property,
condition (financial or otherwise) or results of operations of the Borrower and
its Subsidiaries taken as a whole has occurred since September 30,
2008.

     

    SECTION
5.07 Taxes.  The
Borrower and its Subsidiaries have filed or caused to be filed on a timely basis
and in correct form all United States Federal and applicable state tax returns
and all other material tax returns which are required to be filed and have paid
all material taxes due pursuant to said returns or pursuant to any assessment
received by the Borrower or any Subsidiary, except such taxes, if any, as are
being contested in good faith and as to which adequate reserves have been
provided in accordance with Agreement Accounting Principles and as to which no
Lien exists.  As of the date hereof, the Internal Revenue Service has
completed its audit of the United States income tax returns of the Borrower on a
consolidated basis through the Borrower’s Fiscal Year ending September 30,
2007.  Except for the Borrower's participation in the Internal Revenue
Service's Continuous Audit Program, there are no pending audits or
investigations regarding the Borrower’s or its Subsidiaries’ Federal, state or
local tax returns which could reasonably be expected to have a Material Adverse
Effect.  No tax liens have been filed and no claims are being asserted
with respect to any such taxes which could reasonably be expected to have a
Material Adverse Effect.  The charges, accruals and reserves on the
books of the Borrower and its Subsidiaries in respect of any taxes or other
governmental charges are in accordance with Agreement Accounting
Principles.

     

    SECTION
5.08 Litigation and Contingent
Obligations.  Except as described in the “Legal Proceedings”
section of the Borrower’s Exchange Act reports filed with the Commission during
the twelve-month period ended December 31, 2008, there are no actions, suits or
proceedings by or before any arbitrator or Governmental Authority and there is
no litigation, arbitration, proceeding, inquiry or investigation by any
Governmental Authority, Self-Regulatory Organization or securities exchange
pending or, to the knowledge of any of the Borrower’s officers, threatened
against or affecting the Borrower or any Subsidiary or any of their respective
Properties which could reasonably be expected to have a Material Adverse Effect,
or that involve this Agreement or the Transactions. The Borrower and its
Subsidiaries have no material Contingent Obligations or Environmental
Liabilities not provided for or disclosed in the Financial
Statements.

     

    SECTION
5.09 Subsidiaries.  Schedule 5.09 hereto
contains an accurate list of all of the Borrower’s Material Subsidiaries as of
the date of this Agreement, setting forth their respective jurisdictions of
organization and the percentage of their respective capital stock or other
ownership interests owned by the Borrower or other Subsidiaries. All of the
outstanding shares of capital stock and other equity interests of each
Subsidiary are validly issued and outstanding and fully paid and nonassessable,
and all such shares and other equity interests owned by the Borrower or a
Subsidiary are owned, beneficially and of record, by the Borrower or such
Subsidiary free and clear of all Liens.

     

    SECTION
5.10 ERISA.  No
ERISA Event has occurred or is reasonably expected to occur that, when taken
together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse
Effect.  The present value of all accumulated benefit obligations
under each Plan (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the date of the most
recent financial statements reflecting such amounts, exceed the fair market
value of the assets of such Plan.  The Borrower is not an entity
deemed to hold “plan assets” within the meaning of 29 C.F.R. § 2510.3-101 of an
employee benefit plan (as defined in Section 3(3) of ERISA) which is subject to
Title I of ERISA or any plan (within the meaning of Section 4975 of the Code),
and neither the execution of this Agreement nor the making of Loans hereunder
gives rise to a prohibited transaction within the meaning of Section 406 of
ERISA or Section 4975 of the Code.

     

    SECTION
5.11 Defaults.  No
Default or Event of Default has occurred and is continuing.

     

    SECTION
5.12 Federal Reserve
Regulations.  Neither the making of any Loan hereunder or the
use of the proceeds thereof will violate or be inconsistent with the provisions
of Regulation T, Regulation U or Regulation X.  Following the
application of the proceeds of the Loans, less than 25% of the value of the
assets of the Borrower and its Subsidiaries which are subject to any limitation
on sale, pledge or other restriction hereunder taken as a whole have been, and
will continue to be, represented by Margin Stock.

     

    SECTION
5.13 Investment
Company.  Neither the Borrower nor any Subsidiary is, or after
giving effect to any Loan will be, subject to registration or regulation under
(i) the Investment Company Act of 1940, as amended, or (ii) any other foreign,
Federal or state statute or regulation which limits its ability to incur
Indebtedness or consummate the transactions contemplated hereby.

     

    SECTION
5.14 Ownership of
Properties.  The Borrower and its Subsidiaries have good and
marketable title to, free of all Liens (other than those permitted by Section 6.16), all of
the Properties and assets reflected in the Financial Statements as being owned
by them, except for assets sold, transferred or otherwise disposed of in the
ordinary course of business since the date thereof.  The Borrower and
its Subsidiaries own, or are licensed or otherwise possess, legally enforceable
rights to use, free and clear of all Liens (other than those permitted by Section 6.16), all
intellectual property of any type necessary for the conduct of their respective
businesses as currently conducted.

     

    SECTION
5.15 Material
Agreements.  Neither the Borrower nor any Subsidiary is a party
to any agreement or instrument or subject to any charter or other corporate
restriction (other than normal regulatory restrictions) which could reasonably
be expected to have a Material Adverse Effect or which restricts or imposes
conditions upon the ability of any Material Subsidiary to (a) pay dividends or
make other distributions on its capital stock, (b) make loans or advances to the
Borrower, (c) repay loans or advances from the Borrower or (d) grant Liens to
the Administrative Agent to secure the Borrower’s obligations hereunder (other
than RJA secured securities inventory lines of credit).  Neither the
Borrower nor any Material Subsidiary is in default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions
contained in (i) any agreement to which it is a party, which default could
reasonably be expected to have a Material Adverse Effect or (ii) any agreement
or instrument evidencing or governing Indebtedness.

     

    SECTION
5.16 Insurance.  The
Borrower and its Subsidiaries maintain with financially sound and reputable
insurance companies insurance on their Property in such amounts and covering
such risks as is reasonably consistent with sound business practice, except to
the extent that wind and flood insurance coverage is not available on
commercially reasonable terms.

     

    SECTION
5.17 Disclosure.  None
of the (a) information, exhibits or reports furnished by the Borrower or any
Subsidiary to the Administrative Agent or to any Lender in connection with the
negotiation of, or compliance with, the Loan Documents, or (b) representations
or warranties of the Borrower or any Subsidiary contained in this Agreement, the
other Loan Documents or any other document, certificate or written statement
furnished to the Administrative Agent or the Lenders by or on behalf of the
Borrower or any Subsidiary pursuant to this Agreement, contained any untrue
statement of a material fact or omitted to state a material fact necessary in
order to make the statements contained herein or therein not misleading in light
of the circumstances in which they were made.  There is no fact known
to any Authorized Officer (other than matters generally affecting the economy or
the financial services industry) that has had or could reasonably be expected to
have a Material Adverse Effect and that has not been disclosed herein or in such
other documents, certificates and statements furnished to the Lenders for use in
connection with the transactions contemplated by this Agreement.

    
       

       

       

    

     

    ARTICLE
VI

     

    

     

    COVENANTS

     

    During
the term of this Agreement, unless the Required Lenders shall otherwise consent
in writing:

     

    SECTION
6.01 Financial
Reporting.  The Borrower will maintain, for itself and each
Subsidiary, a system of accounting established and administered in accordance
with Agreement Accounting Principles, consistently applied, and will furnish to
the Lenders:

     

    (a) As soon
as practicable and in any event within 75 days after the close of each of its
Fiscal Years, an unqualified audit report from KPMG LLP, PricewaterhouseCoopers
LLP, Ernst & Young LLP or Deloitte & Touche LLP, prepared in accordance
with Agreement Accounting Principles on a consolidated and consolidating basis
(consolidating statements need not be certified by such accountants) for itself
and its Subsidiaries, including balance sheets as of the end of such period and
related statements of income, changes in Shareholders’ Equity and cash flows,
and accompanied by any management letter prepared by said accountants (when
available).

     

    (b) As soon
as practicable and in any event within 40 days after the close of the first
three Fiscal Quarters of each of its Fiscal Years, for itself and its
Subsidiaries, consolidated and consolidating unaudited balance sheets as at the
close of each such period and consolidated and consolidating statements of
income, changes in shareholders’ equity and cash flows for the period from the
beginning of such Fiscal Year to the end of such quarter, all certified by its
chief financial officer or its controller.

     

    (c) As soon
as practicable and in any event (i) within 25 days after the close of each
Fiscal Quarter, the FOCUS Report for such Fiscal Quarter filed by RJA and RJFS
with the Commission and (ii) within 30 days after the close of each Fiscal
Quarter, the Thrift Financial Report (or Consolidated Report of Condition and
Income, as the case may be) for such Fiscal Quarter filed by RJ Bank with the
OTS (or the OCC, as the case may be).

     

    (d) Together
with the financial statements required by clauses (a) and (b) above, a
Compliance Certificate signed by its chief financial officer or its controller
showing the calculations necessary to determine compliance with this Agreement
and stating that no Default or Event of Default exists, or if any Default or
Event of Default exists, stating the nature and status thereof.

     

    (e) Prompt
written notice of the occurrence of any ERISA Event that, alone or together with
any other ERISA Events that have occurred, could reasonably be expected to
result in liability of the Borrower and its Subsidiaries in an aggregate amount
exceeding $1,000,000.

     

    (f) As soon
as possible and in any event within 10 days after any Authorized Officer of the
Borrower learns thereof, notice of the assertion or commencement of any claim,
action, litigation, suit or proceeding against or affecting the Borrower or any
Subsidiary, including any investigation or proceeding commenced by the
Commission, the Board, FINRA, MSRB, NYSE, CFTC, FDIC, OTS, OCC or any other
Governmental Authority, Self-Regulatory Organization or securities exchange,
which could reasonably be expected to have a Material Adverse
Effect.

     

    (g) Prompt
written notice regarding any material developments relating to pending claims,
investigations or issues relating to auction rate securities, including a
liquidity plan relating to any proposed repurchase of such
securities.

     

    (h) Promptly
upon the furnishing thereof to the shareholders of the Borrower, copies of all
financial statements, reports and proxy statements so furnished.

     

    (i) Within 15
days after the filing thereof, copies of all effective registration statements
(other than on Form S-8) and annual, quarterly, monthly or other regular reports
which the Borrower files with the Commission and, upon request, any such reports
filed by any Subsidiary.

     

    (j) Such
other information (including non-financial information) as the Administrative
Agent or any Lender may from time to time reasonably request.

     

    SECTION
6.02 Use of
Proceeds.  The Borrower will, and will cause each Subsidiary
to, use the proceeds of the Loans for short-term working capital.  The
Borrower will not, nor will it permit any Subsidiary to, use any of the proceeds
of the Loans to (i) purchase or carry any Margin Stock in violation of
Regulation T, Regulation U or Regulation X, (ii) finance the Acquisition of any
Person which has not been approved and recommended by the board of directors (or
functional equivalent thereof) of such Person,  (iii) fund loans from
the Borrower to any Subsidiary of the Borrower which loans by their terms are
subordinated to other Indebtedness of such Subsidiary (except as specifically
provided in Section
6.11(a)(viii)) or (iv) fund Subsidiary capital contributions, except for
up to $25,000,000 of such capital contributions where no regulatory limitation
on repayment is applicable.

     

    SECTION
6.03 Notice of
Default.  The Borrower will give prompt written notice to the
Lenders of the occurrence of (a) any Default or Event of Default or (b) any
other event or development, financial or otherwise, which could reasonably be
expected to have a Material Adverse Effect other than matters generally
affecting the economy or the financial services industry.

     

    SECTION
6.04 Conduct of
Business.  The Borrower will, and will cause each Material
Subsidiary to, (a) subject to Section 6.12(c),
preserve and maintain its corporate existence, rights, franchises and privileges
in the jurisdiction of its incorporation, (b) maintain all registrations,
licenses, consents, approvals and authorizations from and with any Governmental
Authority, Self-Regulatory Organization or securities exchange necessary or
material to the conduct of its business, and (c) qualify and remain qualified as
a foreign corporation in each jurisdiction in which its ownership or lease of
property or the conduct of its business requires such qualification, except
where failure to qualify could not have a Material Adverse
Effect.  The Borrower will not, and will not permit any of its
Material Subsidiaries to, engage in any material line of business substantially
different from those lines of business carried on by it on the date
hereof.

     

    SECTION
6.05 Taxes.  The
Borrower will, and will cause each Subsidiary to, timely file complete and
correct United States Federal and applicable foreign, state and local tax
returns required by applicable law and pay when due all taxes, assessments and
governmental charges and levies upon it or its income, profits or Property,
except those which are being contested in good faith by appropriate proceedings
and with respect to which adequate reserves have been set aside in accordance
with Agreement Accounting Principles.

     

    SECTION
6.06 Insurance.  The
Borrower will, and will cause each Subsidiary to, maintain with financially
sound and reputable insurance companies insurance in such amounts and covering
such risks as is reasonably consistent with sound business practice, except to
the extent that wind and flood insurance coverage is not available on
commercially reasonable terms, and the Borrower will furnish to the
Administrative Agent and any Lender upon request full information as to the
insurance carried.

     

    SECTION
6.07 Compliance with
Laws.  The Borrower will, and will cause each Subsidiary to,
comply with all laws, statutes (including, without limitation, the Exchange Act,
the Advisers Act, the Investment Company Act, the CEA, Environmental Laws and
the Bank Holding Company Act), rules, regulations, orders, writs, judgments,
injunctions, decrees or awards to which it may be subject.

     

    SECTION
6.08 Maintenance of
Properties.  The Borrower will, and will cause each Subsidiary
to, do all things necessary to maintain, preserve, protect and keep its Property
in good repair, working order and condition, and make all necessary and proper
repairs, renewals and replacements so that its business carried on in connection
therewith may be properly conducted at all times.

     

    SECTION
6.09 Inspection.  The
Borrower will, and will cause each Subsidiary to, permit the Administrative
Agent and the Lenders, by their respective representatives and agents, to
inspect any of the Property, corporate books and financial records of the
Borrower and each Subsidiary, to examine and make copies of the books of
accounts and other financial records of the Borrower and each Subsidiary, and to
discuss the affairs, finances and accounts of the Borrower and each Subsidiary
with, and to be advised as to the same by, their respective officers at such
reasonable times and intervals as the Administrative Agent or any Lender may
designate.  The Borrower will keep or cause to be kept, and cause each
Subsidiary to keep or cause to be kept, appropriate records and books of account
in which complete entries are to be made reflecting its and their business and
financial transactions, such entries to be made in accordance with Agreement
Accounting Principles consistently applied.

     

    SECTION
6.10 Ownership of
Subsidiaries.  The Borrower will continue to own, directly,
beneficially and of record, free and clear of all Liens and restrictions, 100%
of the outstanding shares of capital stock of each of RJA, RJFS and RJ
Bank.

     

    SECTION
6.11 Indebtedness.  (a)
The Borrower will not, nor will it permit any Subsidiary to, create, incur or
suffer to exist any Indebtedness, except:

     

    (i) The Loans
hereunder;

     

    (ii) FDIC-Guaranteed
Term Notes and TARP Preferred Stock;

     

    (iii) Securities
sold under agreements to repurchase (to the extent such obligations constitute
Indebtedness);

     

    (iv) Contingent
Obligations permitted by Section
6.15;

     

    (v) Capital
Lease Obligations and purchase money Indebtedness not exceeding $27,000,000 in
the aggregate at any time outstanding;

     

    (vi)  (i)
Moneys due to counterparties under stock loan transactions, (ii) liabilities to
customers for cash on deposit, (iii) liabilities to brokers, dealers and
clearing organizations relating to the settlement of securities transactions,
and (iv) monies due to counterparties under interest rate and credit default
swap transactions;

     

    (vii) Indebtedness
of Raymond James Credit Corporation in an aggregate principal amount not
exceeding $50,000,000 used to finance loans collateralized by public company
restricted or control shares;

     

    (viii) Indebtedness
of any Subsidiary for borrowed money from the Borrower which is not subordinated
by its terms to other Indebtedness of such Subsidiary, except for Indebtedness
not exceeding CDN. $175,000,000 of Raymond James Ltd./Raymond James Ltée.
(Canadian Subsidiary) for borrowed money from the Borrower (or an Affiliate of
the Borrower) which is subordinated by its terms to other Indebtedness of such
Subsidiary;

     

    (ix) Mortgage
Indebtedness in an aggregate principal amount not exceeding $80,000,000 relating
to property of the Borrower or its Subsidiaries used for corporate
operations;

     

    (x) Guarantees
or loans by the Borrower or its Subsidiaries with respect to the activities of
Raymond James Tax Credit Funds, Inc. or any of its Subsidiaries not exceeding
the lesser of (i) $300,000,000 or (ii) 10% of Shareholders’ Equity;

     

    (xi) Indebtedness
related to investments in real estate partnerships owed by variable interest
entities of the Borrower in an aggregate principal amount not exceeding the
value of associated assets reflected on the Borrower’s balance
sheet;

     

    (xii) Indebtedness
incurred in connection with merchant banking activities in an aggregate
principal amount not exceeding $150,000,000;

     

    (xiii) RJA and
Raymond James Ltd./Raymond James Ltée. secured and unsecured lines of credit
used to facilitate the broker-dealer business that do not constitute proceeds of
third party loans included in regulatory capital;

     

    (xiv) RJ Bank
secured advances from the Federal Home Loan Bank of Atlanta to provide
traditional banking products and services; and

     

    (xv) Unsecured
Indebtedness not otherwise permitted by this Section 6.11 in an
aggregate principal amount not exceeding $10,000,000.

     

    (b) The
Borrower will not prepay, redeem, purchase, defease or otherwise satisfy prior
to the scheduled maturity thereof, or make any payment in violation of any
subordination terms of, any Indebtedness with a scheduled maturity subsequent to
the Maturity Date.

     

    SECTION
6.12 Merger.  The
Borrower will not, nor will it permit any Subsidiary to, merge or consolidate
with or into any other Person, except that (a) a Wholly-Owned Subsidiary may
merge or consolidate  into the Borrower or any Wholly-Owned Subsidiary
of the Borrower, (b) the Borrower or any Subsidiary may merge or consolidate
with any other Person so long as the Borrower or such Subsidiary is the
continuing or surviving corporation and, prior to and after giving effect to
such merger or consolidation, no Default or Event of Default shall exist, and
(c) any Subsidiary may enter into a merger or consolidation as a means of
effecting a disposition permitted by Section
6.13.

     

    SECTION
6.13 Sale of
Assets.  The Borrower will not, nor will it permit any
Subsidiary to, lease, sell, transfer or otherwise dispose of its Property, to
any other Person except for (a) sales of securities sold in the ordinary course
of business, and (b) leases, sales, transfers or other dispositions of its
Property that, together with all other Property of the Borrower and its
Subsidiaries previously leased, sold or disposed of (other than sales of
securities sold in the ordinary course of business) as permitted by this Section 6.13 during
the twelve-month period ending with the month in which any such lease, sale or
other disposition occurs, do not constitute a Substantial Portion of the
Property of the Borrower and its Subsidiaries.

     

    SECTION
6.14 Investments and
Acquisitions.  The Borrower will not, nor will it permit any
Subsidiary to, make or suffer to exist any Investments (including, without
limitation, loans and advances to, and other Investments in, Subsidiaries), or
commitments therefor, or to create any Subsidiary or to become or remain a
partner in any partnership or joint venture, or to make any Acquisition of any
Person,  except:

     

    (a) Existing
Investments in Subsidiaries and Affiliates;

     

    (b) Obligations
of, or fully guaranteed by, the United States of America or the Commonwealth of
Canada;  commercial paper and other short-term notes and securities
rated investment grade by a national securities rating agency; demand deposit
accounts maintained in the ordinary course of business; and certificates of
deposit issued by and time deposits with commercial banks (whether domestic or
foreign) having capital and surplus in excess of $100,000,000;

     

    (c)  (i) Publicly traded
securities, (ii) direct or indirect proprietary private Investments (including
venture capital, merchant banking and leveraged aircraft lease Investments) not
exceeding the lesser of (A) $300,000,000 or (B) 15% of Shareholder’s Equity
(calculated net of the aggregate of any cash returns on individual Investments
up to a limit of the respective individual amounts of such Investments) plus up
to $10,000,000 constituting Borrower’s equity Investment in its leveraged
commercial aircraft lease with Continental Airlines, Inc., and (iii) (A) bridge
loans of a tenor of six months or less, (B) preferred stock, other mezzanine
equity instruments of other non-publicly traded debt or equity securities held
for periods of six months or less, and (C) net worth maintenance guarantees (or
other “keepwell” arrangements ) of a duration of six months or less, primarily
relating to Borrower’s investment banking activities that, on a cumulative basis
for such Investments described in (iii) (A), (B) and (C) above, do not exceed
$200,000,000 in aggregate principal amount at any time outstanding;

     

    (d) Additional
Investments in existing Subsidiaries of the Borrower provided that no Default or
Event of Default shall have occurred and be continuing either immediately before
or after giving effect to such transaction and no Material Adverse Effect would
result therefrom;

     

    (e) Acquisitions
of or Investments in the capital stock, assets, obligations or other securities
of or interest in other Persons provided that (i) each such
Person shall (x) in regard to Persons that would as a result of the proposed
transaction become Material Subsidiaries, be incorporated, organized or
otherwise formed under the laws of any state of the United States, or under the
laws of Canada or Great Britain, and (y) be engaged in a line of business not
substantially different from those lines of business carried on by the Borrower
and its Subsidiaries on the date hereof, (ii) the transaction (or any tender
offer commencing a proposed transaction) shall have been approved and
recommended by the board of directors (or functional equivalent thereof) of such
Person, and (iii) no Default or Event of Default shall have occurred and be
continuing either immediately before or after giving effect to such transaction
and no Material Adverse Effect would result therefrom;

     

    (f) Securities
purchased under agreements to resell (to the extent such transactions constitute
Investments);

     

    (g) Investments
in (i) mortgage, pre-development, construction or other loans, advances or
guarantees not exceeding $100,000,000 in aggregate principal amount outstanding
to finance low income housing projects whose creditworthiness have been
underwritten by Raymond James Tax Credit Funds, Inc. (such loans, advances or
guarantees to be in addition to the guarantees or loans permitted by Sections 6.11(a)(x) and 6.15(d) hereof), and
(ii) loans to Pine Creek Healthcare Capital, Inc. to purchase and carry debt
obligations not exceeding $50,000,000 in aggregate principal amount outstanding
that are issued to fund health care facilities and associated
equipment;

     

    (h) Investment
in a Canadian trust fund established and funded to acquire Borrower common stock
in the open market in order to make in-kind settlements of restricted stock
units granted as bonuses to certain employees of Raymond James Ltd./Raymond
James Ltée.; and

     

    (i) Loans and
advances that RJ Bank makes in the ordinary course of its business.

     

    SECTION
6.15 Contingent
Obligations.  The Borrower will not, nor will it permit any
Subsidiary to, make or suffer to exist any Contingent Obligation (including,
without limitation, any Contingent Obligation with respect to the obligations of
a Subsidiary), except

     

    (a) by
endorsement of instruments for deposit or collection in the ordinary course of
business;

     

    (b) guarantees
by the Borrower of the Indebtedness of Raymond James Credit Corporation in an
aggregate principal amount not exceeding $50,000,000 referred to in Section
6.11(a)(vii);

     

    (c) guarantees
by the Borrower with respect to settlement of securities transactions by its
Affiliates (including its offices and foreign joint ventures) extended to
customers of, lenders to, or clearing agencies for, such
Affiliates;

     

    (d) guarantees
or loans by the Borrower or its Subsidiaries with respect to the activities of
Raymond James Tax Credit Funds, Inc. or any of its Subsidiaries not exceeding
the lesser of (i) $300,000,000 or (ii) 10% of Shareholders’ Equity (such
guarantees or loans to be in addition to the guarantees or loans permitted by
Section
6.14(g)(i));

     

    (e) guarantees
by the Borrower relating to the net performance obligations of RJ Capital
Services, Inc. owed to counterparties under interest rate and credit default
swap transactions documented under the ISDA (International Swaps Dealer
Association) form Master Agreement and applicable Addenda;

     

    (f) guarantees
by the Borrower (or any Subsidiary) of the Indebtedness of any other
Subsidiaries in an aggregate principal amount not exceeding
$30,000,000;

     

    (g)  guarantees
by RJA of obligations related to Letters of Credit issued by JPMorgan Chase
Bank, N.A. for the benefit of RJA retail corporate clients, so long as repayment
of any such guarantee is collateralized by securities in such customer’s RJA
account;

     

    (h) Letters
of Credit issued by RJ Bank in the ordinary course of its business;

     

    (i) guarantees
by the Borrower of the mortgage Indebtedness permitted by Section
6.11(a)(ix);

     

    (j) agreements
of the Borrower with the Office of the Controller of the Currency and Raymond
James Trust, N.A. ensuring that the latter has adequate capital and liquidity;
and

     

    (k) guarantees
by RJ Bank of payment in the event of default for exposure under interest rate
swaps on behalf of corporate borrowers doing business with Raymond James Capital
Services, Inc.

     

    SECTION
6.16 Liens.  The
Borrower will not, nor will it permit any Subsidiary to, create, incur, or
suffer to exist any Lien in, of or on the Property of the Borrower or any of its
Subsidiaries, except:

     

    (a) Liens for
Taxes, assessments or governmental charges or levies on its Property if the same
shall not at the time be delinquent or thereafter can be paid without penalty,
or are being contested in good faith and by appropriate proceedings and for
which adequate reserves in accordance with Agreement Accounting Principles shall
have been set aside on its books;

     

    (b) Liens
imposed by law, such as carriers’, warehousemen’s and mechanics’ liens and other
similar liens arising in the ordinary course of business which secure the
payment of obligations not more than 60 days past due or which are being
contested in good faith by appropriate proceedings and for which adequate
reserves shall have been set aside on its books;

     

    (c) Liens
arising out of pledges or deposits under worker’s compensation laws,
unemployment insurance, old age pensions, or other social security or retirement
benefits, or similar legislation;

     

    (d) Utility
easements, building restrictions and such other encumbrances or charges against
real property as are of a nature generally existing with respect to properties
of a similar character and which do not in any material way affect the
marketability of the same or interfere with the use thereof in the business of
the Borrower or its Subsidiaries;

     

    (e) Liens
securing the Indebtedness permitted by Sections
6.11(a)(iii), (v), (vi), (ix), (x), (xii), (xiii) and (xiv) and the
Investments permitted by Section 6.14 (g)(i);
and

     

    (f) Liens
incurred in the ordinary course of the settlement of securities
transactions.

     

    SECTION
6.17 Affiliates.  The
Borrower will not, and will not permit any Subsidiary to, enter into any
transaction (including, without limitation, the purchase or sale of any Property
or service) with, or make any payment or transfer to, any Affiliate except (a)
in regard to any sale, lease or other transfer of any property or assets (other
than cash advances or loans) to, or any purchase, lease or other acquisition of
any property or assets from, any Affiliate, in the ordinary course of business
at prices and on terms and conditions not less favorable to the Borrower or such
Subsidiary that could be obtained on an arms-length basis from unrelated
parties, (b) in regard to any other transaction with an Affiliate, in the
ordinary course of business and pursuant to the reasonable requirements of the
Borrower’s or such Subsidiary’s business and upon fair and reasonable terms and
(c) transactions among the Borrower and Wholly-Owned Subsidiaries of the
Borrower.

     

    SECTION
6.18 Change in Corporate
Structure; Fiscal Year.  The Borrower shall not, nor shall it
permit any Material Subsidiary to, (a) permit any amendment or modification to
be made to its certificate or articles of incorporation or by-laws which is
materially adverse to the interests of the Lenders (provided that the Borrower
shall notify the Administrative Agent of any other amendment or modification
thereto as soon as practicable thereafter) or (b) change its Fiscal Year to end
on any date other than the last day of September of each year, except that the
Borrower or any Material Subsidiary may change its Fiscal Year to a calendar
year basis if the Bank Holding Company Act becomes applicable to
Borrower.

     

    SECTION
6.19 Inconsistent
Agreements.  The Borrower shall not, nor shall it permit any
Subsidiary to, enter into any indenture, agreement, instrument or other
arrangement which (a) directly or indirectly prohibits or restrains, or has the
effect of prohibiting or restraining, or imposes materially adverse conditions
upon, the incurrence of Borrower’s obligations hereunder, the amending of the
Loan Documents or the ability of any Subsidiary to (i) pay dividends or make
other distributions on its capital stock, (ii) make loans or advances to the
Borrower, or (iii) repay loans or advances from the Borrower (except to the
extent repayment of such loans or advances is permitted to be subordinated
pursuant to Section
6.11(a)(viii)), or (b) contains any provision which would be violated or
breached by the making of Loans or by the performance by the Borrower or any
Subsidiary of any of its obligations under any Loan Document.

     

    SECTION
6.20 Financial
Covenants.

     

    6.20.1                      Minimum Tangible Net
Worth.  The Borrower on a consolidated basis with its
Subsidiaries at all times after the date hereof shall maintain Tangible Net
Worth of not less than (i) $1,370,000,000 plus (ii) 50% (fifty percent) of
cumulative Net Income (if positive) earned after September 30,
2008.

     

    6.20.2                      Net Cash Capital to Net
Liquid Assets Ratio.  The Borrower on a consolidated basis with
its Subsidiaries at all times after the date hereof shall maintain a Net Cash
Capital to Net Liquid Assets Ratio of not less than 3% (three
percent).

     

    6.20.3                      Double Leverage
Ratio.  The Borrower on a parent-only basis at all times after
the date hereof shall maintain a Double Leverage Ratio of not more than 1.15 to
1.0.

     

    6.20.4                      RJA Net
Capital.  The Borrower shall cause RJA at all times after the
date hereof to maintain a ratio (computed in accordance with Exhibit A to Rule
15c3-3, “Formula for Determination of Reserve Requirements for Brokers and
Dealers”) of Net Capital to Aggregate Debit Items of not less than 10% (ten
percent).

     

    6.20.5                      RJFS Net
Capital.  The Borrower shall cause RJFS at all times after the
date hereof to maintain Net Capital of not less than $5,000,000.

     

    6.20.6                      RJA/RJFS Excess Net
Capital.  The Borrower shall cause RJA and RJFS at all times,
except for certain limited periods totaling not more than 20 days during any
Fiscal Year when equity and/or debt underwriting commitments result in a
temporary reduction of Excess Net Capital, to have combined Excess Net Capital
of not less than $200,000,000.

     

    6.20.7                      RJ Bank Nonperforming
Assets.  The Borrower shall cause RJ Bank at all times after
the date hereof to maintain (a) a ratio of (i) RJ Bank’s total Nonperforming
Assets to (ii) RJ Bank’s total assets of less than 4% (four percent) and (b) a
ratio of (i) RJ Bank’s allowance for loan losses to (ii) RJ Bank’s total
nonperforming loans of greater than 70% (seventy percent).

     

    SECTION
6.21 Borrower and RJ Bank Well
Capitalized.  The Borrower shall, and shall cause RJ Bank, at
all times after the date hereof to maintain a status of “well capitalized” as
such term is from time to time defined by the Board, OTS, OCC or such other
regulatory body with supervisory authority over the Borrower and RJ Bank (such
standard to be determined by reference to minimum total risk-based, Tier I
risk-based, Tier I leverage ratios or such other quantitative measures as
established from time to time by such regulatory bodies).

     

    SECTION
6.22 Restricted
Payments.  The Borrower shall not declare or pay dividends on,
or purchase, redeem, retire, defease or otherwise acquire for value, any of its
capital stock now or hereafter outstanding, or return any capital or make any
distribution of assets to such capital stockholders, in an amount that exceeds
the lesser of
(a) $60,000,000 per Fiscal Year plus the amount of
any common stock repurchases used to fund the Borrower’s incentive stock option
and stock purchase plans, or (b) if TARP Preferred Stock is outstanding, the
maximum amount of such restricted equity payments permitted to be made under the
terms applicable to such Preferred Stock.

     

    ARTICLE
VII

     

    

     

    EVENTS
OF DEFAULT

     

    If any
one of the following events (“Events of Default”)
shall occur:

     

    (a) Representation or
Warranty.  Any representation or warranty made or deemed made
by or on behalf of the Borrower or any of its Subsidiaries to the Lenders or the
Administrative Agent under or in connection with this Agreement, any other Loan
Document, any Loan, or any certificate or information delivered in connection
with this Agreement or any other Loan Document shall be false in any material
respect on the date as of which made or deemed made;

     

    (b) Non-Payment.  (i)
Nonpayment of any principal of any Loan when due, or (ii) nonpayment of any
interest upon any Loan or of any facility fee or other obligation under any of
the Loan Documents within five days after the same becomes due;

     

    (c) Specific
Defaults.  The breach by the Borrower of any of the terms or
provisions of Section
6.02, Section
6.03(a), Section 6.04 (second
sentence only) or Sections 6.10 through
6.20;

     

    (d) Other
Defaults.  The breach by the Borrower (other than a breach
which constitutes an Event of Default under another paragraph of this Article VII) of any
of the terms or provisions of this Agreement which is not remedied within 30
days after written notice from the Administrative Agent or any
Lender;

     

    (e) Cross-Default.  Failure
of the Borrower or any of its Material Subsidiaries to pay when due any
FDIC-Guaranteed Term Notes or any other Indebtedness aggregating in excess of
$5,000,000; or the default by the Borrower or any of its Subsidiaries in the
performance of any term, provision or condition contained in any agreement or
agreements under which any such Indebtedness was created or is governed (or the
occurrence of any other event or existence of any other condition) the effect of
any of which is to cause, or to permit the holder or holders of such
Indebtedness to cause, such Indebtedness to become due prior to its stated
maturity; or any such Indebtedness of the Borrower or any of its Material
Subsidiaries shall be declared to be due and payable or required to be prepaid
or repurchased (other than by a regularly scheduled payment) prior to the stated
maturity thereof; or the Borrower or any of its Material Subsidiaries shall not
pay, or admit in writing its inability to pay, its debts generally as then
become due;

     

    (f) Insolvency; Voluntary
Proceedings.  The Borrower or any of its Material Subsidiaries
shall (i) have an order for relief entered with respect to it under the Federal
bankruptcy laws as now or hereafter in effect, (ii) make an assignment for the
benefit of creditors, (iii) apply for, seek, consent to, or acquiesce in, the
appointment of a receiver, custodian, trustee, examiner, liquidator or similar
official for it or any Substantial Portion of its Property, (iv) institute any
proceeding seeking an order for relief under the Federal bankruptcy laws as now
or hereafter in effect or seeking to adjudicate it a bankrupt or insolvent, or
seeking dissolution, winding up, liquidation, reorganization, arrangement,
adjustment or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors or fail to file an
answer or other pleading denying the material allegations of any such proceeding
filed against it, (v) take any corporate or partnership action to authorize or
effect any of the foregoing actions set forth in this paragraph, or (vi) fail to
contest in good faith any appointment or proceeding described in paragraph (g)
below;

     

    (g) Involuntary
Proceedings.  Without the application, approval or consent of
the Borrower or any of its Material Subsidiaries, a receiver, trustee, examiner,
liquidator or similar official shall be appointed for the Borrower or any of its
Material Subsidiaries or any Substantial Portion of its Property, or a
proceeding described in subparagraph (f)(iv) above shall be instituted against
the Borrower or any of its Material Subsidiaries and such appointment continues
undischarged or such proceeding continues undismissed or unstayed for a period
of 30 consecutive days;

     

    (h) Condemnation.  Any
court, government or governmental agency shall condemn, seize or otherwise
appropriate, or take custody or control of, all or any portion of the Property
of the Borrower and its Subsidiaries which, when taken together with all other
Property of the Borrower and its Subsidiaries so condemned, seized,
appropriated, or taken custody or control of, during the twelve-month period
ending with the month in which any such action occurs, constitutes a Substantial
Portion;

     

    (i) Judgments.  (i)
The Borrower or any of its Material Subsidiaries shall fail within 30 days to
pay, bond or otherwise discharge one or more judgments or orders for the payment
of money in excess of $10,000,000 in the aggregate, or (ii) the Borrower or any
of its Subsidiaries shall fail to pay, bond or otherwise discharge one or more
nonmonetary judgments or orders which, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect, which judgment(s), in
any such case of clauses (i) and (ii), is/are not stayed on appeal or otherwise
being appropriately contested in good faith;

     

    (j) Change in
Control.  Any Change in Control shall occur;

     

    (k) SIPC.  The
Commission or any Self-Regulatory Organization has notified the SIPC pursuant to
Section 5(a)(1) of the SIPA of facts which indicate that the Borrower, RJA or
RJFS is in or is approaching financial difficulty, or the SIPC shall file an
application for a protective decree with respect to the Borrower, RJA or RJFS
under Section 5(a)(3) of the SIPA;

     

    (l) Broker-Dealer
License.  The Commission or other Governmental Authority shall
revoke or suspend the license or authorization of RJA and RJFS under Federal or
state law to conduct business as a securities broker-dealer (and such license or
authorization shall not be reinstated within five days), or RJA or RJFS shall be
suspended or expelled from membership in the NYSE, FINRA or any other
Self-Regulatory Organization or securities exchange;

     

    (m) Bank
License.  The OTS, the OCC or any other appropriate banking
regulator shall revoke or terminate the charter or license of RJ Bank, or the
FDIC shall revoke or terminate the deposit insurance of RJ Bank; or

     

    (n) ERISA
Event.  An ERISA Event shall have occurred that, in the opinion
of the Required Lenders, when taken together with all other ERISA Events that
have occurred, could reasonably be expected to result in (i) liability of the
Borrower and its Subsidiaries in an aggregate amount exceeding $1,000,000 or
(ii) a Material Adverse Effect.

     

    then, and
in every such event (other than an event with respect to the Borrower described
in paragraphs (f) or (g) of this Article), and at any time thereafter during the
continuance of such event, the Administrative Agent may, and at the request of
the Required Lenders shall, by notice to the Borrower, take either or both of
the following actions, at the same or different times:  (i) terminate
the Commitments, and thereupon the Commitments shall terminate immediately, and
(ii) declare the Loans then outstanding to be due and payable in whole (or in
part, in which case any principal not so declared to be due and payable may
thereafter be declared to be due and payable), and thereupon the principal of
the Loans so declared to be due and payable, together with accrued interest
thereon and all fees and other obligations of the Borrower accrued hereunder,
shall become  due and payable immediately, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower; and in case of any event with respect to the Borrower described in
paragraphs (f) or (g) of this Article, the Commitments shall automatically
terminate and the principal of the Loans then outstanding, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued
hereunder, shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower.

     

    ARTICLE
VIII

     

    

     

    THE
ADMINISTRATIVE AGENT

     

    Each of
the Lenders hereby irrevocably appoints the Administrative Agent as its agent
and authorizes the Administrative Agent to take such actions on its behalf and
to exercise such powers as are delegated to the Administrative Agent by the
terms hereof, together with such actions and powers as are reasonably incidental
thereto.

     

    The bank
serving as the Administrative Agent hereunder shall have the same rights and
powers in its capacity as a Lender as any other Lender and may exercise the same
as though it were not the Administrative Agent, and such bank and its Affiliates
may accept deposits from, lend money to and generally engage in any kind of
business with the Borrower or any Subsidiary or other Affiliate thereof as if it
were not the Administrative Agent hereunder.

     

    The
Administrative Agent shall not have any duties or obligations except those
expressly set forth herein.  Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or
other implied duties, regardless of whether a Default has occurred and is
continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby that the Administrative Agent is
required to exercise in writing as directed by the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.02), and
(c) except as expressly set forth herein, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to the Borrower or any of its Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity.  The Administrative Agent shall not
be liable for any action taken or not taken by it with the consent or at the
request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in Section 9.02) or in
the absence of its own gross negligence or willful misconduct.  The
Administrative Agent shall be deemed not to have knowledge of any Default unless
and until written notice thereof is given to the Administrative Agent by the
Borrower or a Lender, and the Administrative Agent shall not be responsible for
or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement, (ii) the contents
of any certificate, report or other document delivered hereunder or in
connection herewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement or any
other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article IV or
elsewhere herein, other than to confirm receipt of items expressly required to
be delivered to the Administrative Agent.

     

    The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person.  The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon.  The Administrative Agent may
consult with legal counsel (who may be counsel for the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

     

    The
Administrative Agent may perform any and all its duties and exercise its rights
and powers by or through any one or more sub-agents appointed by the
Administrative Agent.  The Administrative Agent and any such sub-agent
may perform any and all its duties and exercise its rights and powers through
their respective Related Parties.  The exculpatory provisions of the
preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of the Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative
Agent.

     

    Subject
to the appointment and acceptance of a successor Administrative Agent as
provided in this paragraph, the Administrative Agent may resign at any time by
notifying the Lenders and the Borrower.  Upon any such resignation,
the Required Lenders shall have the right, in consultation with the Borrower, to
appoint a successor.  If no successor shall have been so appointed by
the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation, then
the retiring Administrative Agent may, on behalf of the Lenders, appoint a
successor Administrative Agent which shall be a bank with an office in New York,
New York, or an Affiliate of any such bank.  Upon the acceptance of
its appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations
hereunder.  The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such
successor.  After the Administrative Agent’s resignation hereunder,
the provisions of this Article and Section 9.03 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while it was acting as Administrative
Agent.

     

    Each
Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement.  Each Lender also acknowledges
that it will, independently and without reliance upon the Administrative Agent
or any other Lender and based on such documents and information as it shall from
time to time deem appropriate, continue to make its own decisions in taking or
not taking action under or based upon this Agreement, any related agreement or
any document furnished hereunder or thereunder.

     

    None of
the Lenders identified in this Agreement as a “Co-Syndication Agent” shall have
any right, power, obligation, liability, responsibility or duty (including that
of a fiduciary) under this Agreement other than those applicable to all Lenders
as such.

     

    ARTICLE
IX

     

    

     

    GENERAL
PROVISIONS

     

    SECTION
9.01 Notices.  (a)
Except in the case of notices and other communications expressly permitted to be
given by telephone (and subject to paragraph (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered by
hand or overnight courier service, mailed by certified or registered mail or
sent by telecopy, as follows:

     

    (i) if to the
Borrower, to it at 880 Carillon Parkway, St. Petersburg, Florida 33716,
Attention of Jeffrey P. Julien (Telecopy No. (727) 573-8915);

     

    (ii) if to the
Administrative Agent, to JPMorgan Chase Bank, N.A., Loan and Agency Services
Group, 1111 Fannin, 10th Floor, Houston, Texas 77002, Attention of Wesley Gibson
(Telecopy No. (713) 750-2228), with a copy to JPMorgan Chase Bank, N.A.,
Financial Institutions – Broker Dealer Group, 270 Park Avenue, 36th Floor,
New York, NY 10172, Attention of Piers C. Murray (Telecopy No. (212) 270-1511);
and

     

    (iii) if to any
other Lender, to it at its address (or telecopy number) set forth in its
Administrative Questionnaire.

     

    (b) Notices
and other communications to the Lenders hereunder may be delivered or furnished
by electronic communications pursuant to procedures approved by the
Administrative Agent; provided that the
foregoing shall not apply to notices pursuant to Article II unless
otherwise agreed by the Administrative Agent and the applicable
Lender.  The Administrative Agent or the Borrower may, in its
discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or
communications.

     

    (c) Any party
hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto.  All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt.

     

    SECTION
9.02 Waivers;
Amendments.  (a) No failure or delay by the Administrative
Agent or any Lender in exercising any right or power hereunder shall operate as
a waiver thereof, nor shall any single or partial exercise of any such right or
power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any
other right or power.  The rights and remedies of the Administrative
Agent and the Lenders hereunder are cumulative and are not exclusive of any
rights or remedies that they would otherwise have.  No waiver of any
provision of this Agreement or consent to any departure by the Borrower
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which
given.  Without limiting the generality of the foregoing, the making
of a Loan shall not be construed as a waiver of any Default, regardless of
whether the Administrative Agent or any Lender may have had notice or knowledge
of such Default at the time.

     

    (b) Neither
this Agreement nor any provision hereof may be waived, amended or modified
except pursuant to an agreement or agreements in writing entered into by the
Borrower and the Required Lenders or by the Borrower and the Administrative
Agent with the consent of the Required Lenders; provided that no such
agreement shall (i) increase  the Commitment of any Lender without the
written consent of such Lender, (ii) reduce the principal amount of any Loan or
reduce the rate of interest thereon, or reduce any fees payable hereunder,
without the written consent of each Lender affected thereby, (iii) postpone the
scheduled date of payment of the principal amount of any Loan, or any interest
thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse
any such payment, or postpone the scheduled date of expiration of any
Commitment, without the written consent of each Lender affected thereby, (iv)
change Section
2.18(b) or (c) in a manner that
would alter the pro rata sharing of payments required thereby, without the
written consent of each Lender, (v) change any of the provisions of this Section
or the definition of “Required Lenders” or any other provision hereof specifying
the number or percentage of Lenders required to waive, amend or modify any
rights hereunder or make any determination or grant any consent hereunder,
without the written consent of each Lender, or (vi) waive or amend the condition
set forth in Section
4.02 (a) without the written consent of each Lender; provided further that
no such agreement shall amend, modify or otherwise affect the rights or duties
of the Administrative Agent, and no amendment shall be made to Section 2.21, without
the prior written consent of the Administrative Agent.

     

    SECTION
9.03 Expenses; Indemnity; Damage
Waiver.  (a) The Borrower shall pay (i) all reasonable out of
pocket expenses incurred by the Administrative Agent and the Lead Arranger and
their Affiliates, including the reasonable fees, charges and disbursements of
counsel for the Administrative Agent, in connection with the syndication of the
credit facilities provided for herein, the preparation and administration of
this Agreement or any amendments, modifications or waivers of the provisions
hereof (whether or not the transactions contemplated hereby or thereby shall be
consummated), and (ii) all out-of-pocket expenses incurred by the Administrative
Agent or any Lender, including the reasonable fees, charges and disbursements of
any counsel for the Administrative Agent or any Lender, in connection with the
enforcement or protection of its rights in connection with this Agreement,
including its rights under this Section, or in connection with the Loans made
hereunder, including all such out-of pocket expenses incurred
during  any workout, restructuring or negotiations in respect of such
Loans.

     

    (b) The
Borrower shall indemnify the Administrative Agent, the Lead Arranger and each
Lender, and each Related Party of any of the foregoing Persons (each such Person
being called an “Indemnitee”) against,
and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees, charges and disbursements
of any counsel for any Indemnitee, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement or any agreement or instrument
contemplated hereby, the performance by the parties hereto of their respective
obligations hereunder or the consummation of the Transactions or any other
transactions contemplated hereby, (ii) any Loan or the use of the proceeds
therefrom, (iii) any actual or alleged presence or release of Hazardous
Materials on or from any Property owned or operated by the Borrower or any of
its Subsidiaries, or any Environmental Liability related in any way to the
Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether
any Indemnitee is a party thereto; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses are determined by a
court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such
Indemnitee.

     

    (c) To the
extent that the Borrower fails to pay any amount required to be paid by it to
the Administrative Agent under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to the Administrative Agent such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
Administrative Agent in its capacity as such.

     

    (d) To the
extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this
Agreement or any agreement or instrument contemplated hereby, the Transactions,
any Loan or the use of the proceeds thereof.

     

    (e) All
amounts due under this Section shall be payable promptly after written demand
therefor.

     

    SECTION
9.04 Successors and
Assigns.  (a) The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby except that (i) the Borrower may not
assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of each Lender (and any attempted assignment or
transfer by the Borrower without such consent shall be null and void) and (ii)
no Lender may assign or otherwise transfer its rights or obligations hereunder
except in accordance with this Section.  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants (to the extent provided in paragraph (c) of this Section) and, to
the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

     

    (b) (i)
Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may
assign to one or more assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the Loans
at the time owing to it) with the prior written consent (such consent not to be
unreasonably withheld) of:

     

     

    (A)           the
Borrower, provided that no
consent of the Borrower shall be required for an assignment to a Lender, an
Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred
and is continuing, any other assignee; and

     

     

    (B)           the
Administrative Agent, provided that no
consent of the Administrative Agent shall be required for an assignment of any
Commitment to an assignee that is a Lender with a Commitment immediately prior
to giving effect to such assignment.

     

    (ii) Assignments
shall be subject to the following additional conditions:

     

    (A)           except
in the case of an assignment to a Lender or an Affiliate of a Lender or an
Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Commitment or Loans of any Class, the amount of the Commitment or Loans
of the assigning Lender subject to each such assignment (determined as of the
date the Assignment and Assumption with respect to such assignment is delivered
to the Administrative Agent) shall not be less than $5,000,000 unless each of
the Borrower and the Administrative Agent otherwise consent, provided that no such
consent of the Borrower shall be required if an Event of Default has occurred
and is continuing;

     

    (B)           each
partial assignment shall be made as an assignment of a proportionate part of all
the assigning Lender’s rights and obligations under this Agreement;

     

    (C)           the
parties to each assignment shall execute and deliver to the Administrative Agent
an Assignment and Assumption, together with a processing and recordation fee of
$3,500; and

     

    (D)           the
assignee, if it shall not be a Lender, shall deliver to the Administrative Agent
an Administrative Questionnaire in which the assignee designates one or more
credit contacts to whom all syndicate-level information (which may contain
material non-public information about the Borrower and its affiliates and their
related parties or their respective securities) will be made available and who
may receive such information in accordance with the assignee’s compliance procedures and
applicable laws, including Federal and state securities laws.

     

    For the
purposes of this Section 9.04(b), the
term “Approved
Fund” has the following meaning:

     

    “Approved Fund” means
any Person (other than a natural person) that is engaged in making, purchasing,
holding or investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a
Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an
entity that administers or manages a Lender.

     

    (iii) Subject
to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and
Assumption, the assignee thereunder shall be a party hereto and, to the extent
of the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 9.03).  Any
assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this Section 9.04 shall be
treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section.

     

    (iv) The
Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses of
the Lenders, and the Commitment of, and principal amount of the Loans owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”).  The
entries in the Register shall be conclusive, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the
contrary.  The Register shall be available for inspection by the
Borrower and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

     

    (v) Upon its
receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire
(unless the assignee shall already be a Lender hereunder), the processing and
recordation fee referred to in paragraph (b) of this Section and any written
consent to such assignment required by paragraph (b) of this Section, the
Administrative Agent shall accept such Assignment and Assumption and record the
information contained therein in the Register; provided that if
either the assigning Lender or the assignee shall have failed to make any
payment required to be made by it pursuant to Section 2.05(c),
2.07(b), 2.18(d) or 9.03(c), the
Administrative Agent shall have no obligation to accept such Assignment and
Assumption and record the information therein in the Register unless and until
such payment shall have been made in full, together with all accrued interest
thereon.  No assignment shall be effective for purposes of this
Agreement unless it has been recorded in the Register as provided in this
paragraph.

     

    (c) (i) Any
Lender may, without the consent of the Borrower or the Administrative Agent,
sell participations to one or more banks or other entities (a “Participant”) in all
or a portion of such Lender’s rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it); provided that (A)
such Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrower, the Administrative Agent
and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
Agreement.  Any agreement or instrument pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 9.02(b) that
affects such Participant.  Subject to paragraph (c)(ii) of this
Section, the Borrower agrees that each Participant shall be entitled to the
benefits of Sections
2.15, 2.16 and 2.17 to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section.  To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 9.08 as
though it were a Lender, provided such Participant agrees to be subject to Section 2.18(c) as
though it were a Lender.

     

    (ii) A
Participant shall not be entitled to receive any greater payment under Section 2.15 or 2.17 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent.  A
Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 2.17 unless
the Borrower is notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Borrower, to comply with Section 2.17(e) as
though it were a Lender.

     

    (d) Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender,
including without limitation any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of
its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

     

    SECTION
9.05 Survival.  All
covenants, agreements, representations and warranties made by the Borrower
herein and in the certificates or other instruments  delivered in
connection with or pursuant to this Agreement shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of this Agreement and the making of any Loans, regardless of any
investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount
payable under this Agreement is outstanding and unpaid and so long as the
Commitments have not expired or terminated.  The provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall
survive and remain in full force and effect regardless of the consummation of
the transactions contemplated hereby, the repayment of the Loans, the expiration
or termination of the Commitments or the termination of this Agreement or any
provision hereof.

     

    SECTION
9.06 Counterparts; Integration;
Effectiveness.  This Agreement may be executed in counterparts
(and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.  This Agreement and any separate letter agreements
with respect to fees payable to the Administrative Agent constitute the entire
contract among the parties relating to the subject matter hereof and supersede
any and all previous agreements and understandings, oral or written, relating to
the subject matter hereof.  Except as provided in Section 4.01, this
Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of
the other parties hereto, and thereafter shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and
assigns.  Delivery of an executed counterpart of a signature page of
this Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.

     

    SECTION
9.07 Severability.  Any
provision of this Agreement held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity,
legality and enforceability of the remaining provisions hereof; and the
invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.

     

    SECTION
9.08 Right of
Setoff.  If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any
time and from time to time, to the fullest extent permitted by law, to set off
and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other obligations at any time owing by such
Lender or Affiliate to or for the credit or the account of the Borrower against
any of and all the obligations of the Borrower now or hereafter existing under
this Agreement held by such Lender, irrespective of whether or not such Lender
shall have made any demand under this Agreement and although such obligations
may be unmatured.  The rights of each Lender under this Section are in
addition to other rights and remedies (including other rights of setoff) which
such Lender may have.

     

    SECTION
9.09 Governing Law; Jurisdiction;
Consent to Service of Process.  (a) This Agreement shall be
construed in accordance with and governed by the law of the State of New
York.

     

    (b) The
Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of
New York sitting in New York County and of the United States District Court of
the Southern District of New York, and any appellate court from any thereof, in
any action or proceeding arising out of or relating to this Agreement, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State or,
to the extent permitted by law, in such Federal court.  Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.  Nothing in this
Agreement shall affect any right that the Administrative Agent or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement
against the Borrower or its properties in the courts of any
jurisdiction.

     

    (c) The
Borrower hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or
relating to this Agreement in any court referred to in paragraph (b) of this
Section.  Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

     

    (d) Each
party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section
9.01.  Nothing in this Agreement will affect the right of any
party to this Agreement to serve process in any other manner permitted by
law.

     

    SECTION
9.10 WAIVER OF JURY
TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     

    SECTION
9.11 Headings.  Article
and Section headings and the Table of Contents used herein are for convenience
of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this
Agreement.

     

    SECTION
9.12 Confidentiality.  Each
of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates’ directors, officers, employees
and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority, (c) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (d) to any other party to this Agreement,
(e) in connection with the exercise of any remedies hereunder or any suit,
action or proceeding relating to this Agreement or the enforcement of rights
hereunder, (f) subject to an agreement containing provisions substantially the
same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower and its
obligations, (g) with the consent of the Borrower or (h) to the extent such
Information (i) becomes publicly available other than as a result of a breach of
this Section or (ii) becomes available to the Administrative Agent or any Lender
on a non-confidential basis from a source other than the
Borrower.  For the purposes of this Section, “Information” means
all information received from the Borrower relating to the Borrower or its
business, other than any such information that is available to the
Administrative Agent or any Lender on a non-confidential basis prior to
disclosure by the Borrower; provided that, in the
case of information received from the Borrower after the date hereof, such
information is clearly identified at the time of delivery as
confidential.  Any Person required to maintain the confidentiality of
Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of
care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information.

     

    EACH
LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN SECTION 9.12(a) FURNISHED TO
IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION
CONCERNING THE BORROWER AND  ITS RELATED PARTIES OR THEIR RESPECTIVE
SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING
THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL
NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW,
INCLUDING FEDERAL AND STATE SECURITIES LAWS.

     

    ALL
INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE
BORROWER OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF
ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY
CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER AND ITS AFFILIATES
AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES) AND ITS
SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWER AND
THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE
QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN
MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND
APPLICABLE LAW.

     

    SECTION
9.13 USA PATRIOT
Act.  Each Lender that is subject to the requirements of the
USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
(the “Act”) hereby notifies the Borrower that pursuant to the requirements of
the Act, it is required to obtain, verify and record information that identifies
the Borrower, which information includes the name and address of the Borrower
and other information that will allow such Lender to identify the Borrower in
accordance with the Act.

     

    

     

    [signature
pages to follow]

     

    
      
        
           

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    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized officers as of the day and year first
above written.

     

    

     

    RAYMOND
JAMES FINANCIAL, INC.

     

    By:        Jeffrey
P.
Julien                                                        

     

    Title:     Senior
Vice President and Chief Financial
Officer                                                           

     

    Address
for Notices:

    880
Carillon Parkway

    St.
Petersburg, Florida 33716

    Attention:   Jeffrey
P. Julien

    Telephone:  (727)
567-5021

    Facsimile:   (727)
573-8915

     

    JPMORGAN
CHASE BANK, N.A.

    Individually
and as Administrative Agent

     

    By:      Thomas
I.
Poz                                                          

     

    Title:    Vice
President                                                            

     

    Address
for General Notices:

    Financial
Institutions-Broker-Dealer Group

    270 Park
Avenue

    36th
Floor

    New York,
NY  10172

    Attention:  Piers
C. Murray

    Telephone:  (212)
270-5445

    Facsimile:   (212)
270-1511

     

    Address
for Funding Matters:

    Loan and
Agency Services

    1111
Fannin, 10th Floor

    Houston,
TX  77002

    Attention:  Wesley
Gibson

    Telephone:  (713)
750-2424

    Facsimile:   (713)
750-2228

    
      
        
           

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    REGIONS
BANK,

     

    Individually
and as Co-Syndication Agent

     

    By:      Heather
L.
Long                                                          

     

    Title:   Vice
President                                                             

     

    Address
for Notices:

    100 N.
Tampa Street

    Suite
3100

    Tampa,
FL  33602-5145

    Attention:  Heather
L. Long

    Telephone:  (813)
226-1256

    Facsimile:  (813)
226-1260

     

    
      
        
           

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    FIFTH
THIRD BANK,

     

    Individually
and as Co-Syndication Agent

     

    By:            John
A.
Marian                                                    

     

    Title:          Vice
President                                                

     

    Address
for Notices:

    201 East
Kennedy Boulevard

    Suite
1800

    Tampa,
FL  33602

    Attention:    John
A. Marian

    Telephone:  (813)
306-2456

    Facsimile:   (813)
306-2531

     

    
      
        
           

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    PNC BANK,
NATIONAL ASSOCIATION,

     

    Individually  and
as Co-Syndication Agent

     

    By:        Kirk
Seagers                                                        

     

    Title:     Vice
President                                                        

     

    Address
for Notices:

    1600
Market Street

    22nd
Floor

    Philadelphia,
PA 19103

    Attention:    Kirk
Seagers

    Telephone:  (215)
585-6290

    Facsimile:   (215)
585-6987

     

    
      
        
           

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    CITIBANK,
N.A.

     

    By:        William
Mandaro                                                        

     

    Title:      Director                                                          

     

    Address
for Notices:

    388
Greenwich Street

    35th
Floor

    New York,
New York  10013

    Attention:    William
Mandaro

    Telephone:  (212)
816-0852

    Facsimile:   (646)
688-6821

     

    
      
        
           

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    THE BANK
OF NEW YORK MELLON

     

    By:        Thomas
Caruso                                                        

     

    Title:      First
Vice
President                                                          

     

    Address
for Notices:

    One Wall
Street

    19th
Floor

    New York,
New York  10286

    Attention:    John
Templeton

    Telephone:  (212)
635-6823

    Facsimile:   (212)
809-9566

     

    

     

    
      
        
           

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          Schedule
2.01

           

          

        

      

    

    

    COMMITMENTS

     

    
      	
              Lender

            	
              Commitment

            
	
              JPMorgan
      Chase Bank, N.A.

            	
              $20,000,000

            
	
              Regions
      Bank

            	
              $20,000,000

            
	
              Fifth
      Third Bank

            	
              $20,000,000

            
	
              PNC
      Bank, National Association

            	
              $20,000,000

            
	
              Citibank,
      N.A.

            	
              $10,000,000

            
	
              The
      Bank of New York Mellon

            	
              $10,000,000

            
	
              Aggregate Commitment

            	
                 
      $100,000,000

            

    

    

     

    

     

    
      
        
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          Schedule
5.09

           

          

        

      

    

    RAYMOND
JAMES FINANCIAL, INC.

     

    MATERIAL
SUBSIDIARIES*

     

    

    
      	
              Name

            	
              Jurisdiction of
  Organization

            
	
              Raymond
      James & Associates, Inc.

            	
              Florida

            
	
              Raymond
      James Bank, FSB

            	
              U.S.A.

            
	
              Raymond
      James Financial Services, Inc.

            	
              Florida

            
	
              Raymond
      James Ltd./Raymond James Ltée.

            	
              Canada

            

    

    

     

    ______________

    *  All
Material Subsidiaries are 100% directly or indirectly owned by the
Borrower.

     

    
      
        
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          Schedule
6.20

           

          

        

      

    

    
      	
               
      

            	
              SECURITIES
      PERCENTAGE HAIRCUTS

            

    

     

    

     

    Haircut
%

     

    Municipal
Obligations (less auction rate
securities)                                           25.0%

    Corporate
Obligations                                                                                              25.0%

    Government
Obligations                                                                                          10.0%

    Agencies                                                                                                                    10.0%

    

    Derivative
Contracts                                                                                                30.0%

    Equity
Securities                                                                                                      
30.0%

    Other
Securities                                                                                                        
30.0%

    

    

    

    

     

    

     

    

     

    
      
        
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          Exhibit
A

           

          

        

      

    

    FORM
OF BORROWING/INTEREST ELECTION REQUEST

     

    
      	
              TO:

            	
              JPMorgan
      Chase Bank, N.A., as Administrative Agent under that certain Credit
      Agreement dated as of February 6, 2009 among Raymond James Financial Inc.,
      the Agents and the Lenders parties thereto (the “Credit
      Agreement”).

            

    

     

    The
undersigned Borrower hereby gives to the Administrative Agent a [Borrowing
Request pursuant to Section 2.03] [Interest Election Request pursuant to Section
2.08] of the Credit Agreement, and such Borrower hereby requests to [borrow]
[convert] [continue] on __________, 20__ (the “date of Borrowing”) from the
Lenders on a pro rata basis an aggregate principal amount of:

     

    [US
$_______________] in Loans as a

     

    □           ABR
Borrowing

     

    □           Eurodollar
Borrowing

     

    ·           Applicable
Interest Period of  month(s).

     

    The
Administrative Agent is authorized and directed to transfer the funds
constituting such Borrowing to the following account of the
undersigned:  [identify account name/number],
Reference:  Loan drawdown.

     

    The
undersigned hereby certifies to the Administrative Agent and the Lenders that
(i) the representations and warranties of the undersigned contained in Article V of the
Credit Agreement are and shall be true and correct on and as of the date hereof
and on and as of the date of Borrowing, including the representations and
warranties set forth in Section 5.06 and the
first sentence of Section 5.08 thereof;
and (ii) as of the date hereof and on and as of the date of Borrowing and
immediately after giving effect to the Borrowing requested hereby, no Default
has occurred and is continuing.

     

    Unless
otherwise defined herein, terms defined in the Credit Agreement shall have the
same meanings in this Borrowing/Interest Election Request.

     

    Dated
__________________

     

    RAYMOND
JAMES FINANCIAL, INC.

     

    By:       /s/
Jeffrey P.
Julien                                                         

    Name:        Jeffrey
P.
Julien                                                        

    Title:          Senior
Vice President and Chief Financial
Officer                                                     

     

    
      
        
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          Exhibit
B

           

          

        

      

    

    COMPLIANCE
CERTIFICATE

     

    I,                 
certify that I am the             
of RAYMOND JAMES FINANCIAL, INC. (the “Borrower”), and that as such I am
authorized to execute this Compliance Certificate on behalf of the Borrower, and
DO HEREBY FURTHER CERTIFY on behalf of the Borrower that:

     

    1.           I
have reviewed the terms of that certain Credit Agreement dated as of February 6,
2009 among the Borrower, the financial institutions named therein (the
“Lenders”) and JPMorgan Chase Bank, N.A., as Administrative Agent (as amended,
supplemented or modified from time to time, the “Credit Agreement”) and I have
made, or have caused to be made by employees or agents under my supervision, a
detailed review of the transactions and conditions of the Borrower during the
accounting period covered by the attached financial statements;

     

    2.           The
examinations described in paragraph 1 did not disclose, and I have no knowledge
of, the existence of any condition or event which constitutes a Default or Event
of Default during or at the end of the accounting period covered by the attached
financial statements or as of the date of this Compliance Certificate, except as
set forth below; and

     

    3.           Schedule I attached
hereto sets forth financial data and computations evidencing compliance with the
covenants set forth in Sections 6.13, 6.20.1, 6.20.2, 6.20.3, 6.20.4, 6.20.5, 6.20.6 and 6.20.7 of the Credit
Agreement, all of which data and computations are true, complete and
correct.  Capitalized terms not defined herein are defined in the
Credit Agreement.

     

    Described
below are the exceptions, if any, to paragraph 2 by listing, in detail, the
nature of the condition or event, the period during which it has existed and the
action which the Borrower has taken, is taking, or proposes to take with respect
to each such condition or event:

     

    __________________________________________________________________

     

    __________________________________________________________________

     

    The
foregoing certifications, together with the computations set forth in Schedule I
hereto and the financial statements delivered with this Compliance Certificate
in support hereof, are made and delivered this ______ day of ______________,
20__.

     

    

     

    RAYMOND
JAMES FINANCIAL, INC.

     

    By:      Jeffrey
P.
Julien                                                          

     

    Title:    Senior
Vice President and Chief Financial
Officer                                 

     

    

     

    
      
        
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          Schedule
I

           

          

        

      

    

    Section 6.13 — Sale of
Assets

    

    Asset
Dispositions for twelve-month period ending with month in which disposition
occurs:

     

    (a)           Permitted
asset dispositions

     

    10% of
consolidated assets of the Borrower at beginning of

     

    such
twelve-month
period*                                                                                              $

     

    (b)           Actual
asset dispositions for such
period                                                                                            $

     

    *
Note:  must also demonstrate (to the extent calculable) that total
asset dispositions for such period do not involve Property which is responsible
for more than 15% of the consolidated net sales or Net Income of the Borrower
for such twelve-month period.

     

    Section 6.20.1 —
Minimum Tangible Net
Worth

     

    1.           Required
Tangible Net Worth: $1,370,000,000

     

    * plus 50% of cumulative Net Income
earned after

       September 30, 2008
(if
positive)                                                                                             $                        

    Total                 $                        

     

    2.           Actual
Tangible Net
Worth:                                                                                                         $                        

     

    Section 6.20.2 —
Net Cash Capital to
Net Liquid Assets Ratio

     

    1.           Net
Cash
Capital                                                                                                         $                        

     

    2.           Net
Liquid
Assets                                                                                                         $                        

     

    3.           Ratio
of (a) to
(b)                                                                                                          %

     

    Section 6.20.3 —
Maximum Double
Leverage Ratio

     

    1.           Maximum
Double Leverage
Ratio                                                                                                         1.15
to 1.0

     

    2.           Actual
Double Leverage Ratio

     

    (a)           Investment
in Subsidiaries plus, without
duplication,

    (i) Intangible Assets, (ii) net equity
Investments in real

    estate partnerships, and (iii) private
equity Investments

    and the funding commitments related
thereto                                                                                              $                        

    

    (b)           Shareholders
equity (parent
only)                                                                                              $                        

     

    (c)           Ratio
of (a) to
(b)                                                                                              ____
to 1.0

     

    Section 6.20.4 —
RJA Net Capital
Ratio

     

    1.           Minimum
RJA Net Capital
Ratio                                                                                                         10%

     

    2.           Actual
RJA Net Capital Ratio

     

    (a)           Net
Capital                                                                                              $                        

     

    (b)           Aggregate
Debit
Items                                                                                              $                        

     

    (c)           Ratio
of (a) to
(b)                                                                                              ____%

     

    Section 6.20.5 —
RJFS Minimum Net
Capital

     

    1.           Minimum
RJFS Net Capital $5,000,000

     

    2.           Actual
RJFS Net
Capital                                                                                                         $                        

     

    Section 6.20.6 —
RJA/RJFS Excess Net
Capital

     

    1.           Minimum
combined RJA/RJFS Excess Net Capital$200,000,000

     

    2.           Actual
combined RJA/RJFS Excess Net
Capital                                                                                                         $                        

     

    Section 6.20.7 —
RJ Bank Nonperforming
Assets

     

    A.1.           Maximum
RJ Bank Nonperforming Assets to

    Total Assets Ratio <
4%

     

    2.           Actual
Ratio

     

    (a)           Total
Nonperforming
Assets                                                                                              $___________

     

    (b)           Total
Assets                                                                                              $___________

     

    (c)           Ratio
of (a) to
(b)                                                                                                   _______%

     

    B.1.           Minimum
RJ Bank Loan Loss Reserve to

    Nonperforming
Loans
Ratio                                                                                                                     70%

     

    2.           Actual
Ratio

     

    (a)           Allowance
for Loan
Losses                                                                                              $___________

     

    (b)           Total
Nonperforming
Loans                                                                                              $___________

     

    (c)           Ratio
of (a) to
(b)                                                                                                   _______%

     

    

     

    

     

    
      
        
          B-

          CHI:2133020.12

        

         

      

      
         

        
          

        

      

      
         

        
          Exhibit
C

        

      

    

    ASSIGNMENT
AND ASSUMPTION

     

    This
Assignment and Assumption (the “Assignment and
Assumption”) is dated as of the Effective Date set forth below and is
entered into by and between [Insert name of Assignor] (the
“Assignor”) and
[Insert name of
Assignee] (the “Assignee”).  Capitalized
terms used but not defined herein shall have the meanings given to them in the
Credit Agreement identified below  (as amended, the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the
Assignee.  The Standard Terms and Conditions set forth in Annex 1
attached hereto are hereby agreed to and incorporated herein by reference and
made a part of this Assignment and Assumption as if set forth herein in
full.

     

    For an
agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the
Assignor, subject to and in accordance with the Standard Terms and Conditions
and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of the Assignor’s rights and
obligations in its capacity as a Lender under the Credit Agreement and any other
documents or instruments delivered pursuant thereto to the extent related to the
amount and percentage interest identified below of all of such outstanding
rights and obligations of the Assignor under the facility identified below and
(ii) to the extent permitted to be assigned under applicable law, all claims,
suits, causes of action and any other right of the Assignor (in its capacity as
a Lender) against any Person, whether known or unknown, arising under or in
connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby or in any
way based on or related to any of the foregoing, including contract claims, tort
claims, malpractice claims, statutory claims and all other claims at law or in
equity related to the rights and obligations sold and assigned pursuant to
clause (i) above (the rights and obligations sold and assigned pursuant to
clauses (i) and (ii) above being referred to herein collectively as the “Assigned
Interest”).  Such sale and assignment is without recourse to
the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

     

    
      	
               
      

            	
              1.

            	
              Assignor:

            	
              ______________________________

            

    

     

    
      	
               
      

            	
              2.

            	
              Assignee:

            	
              ______________________________

            

    

    
      	
               
      

            	
              [and
      is an Affiliate/Approved Fund of [identify
  Lender]]

            

    

     

    
      	
               
      

            	
              3.

            	
              Borrower:

            	
              Raymond
      James Financial, Inc.

            

    

     

    
      	
               
      

            	
              4.

            	
              Administrative
      Agent:

            	
              JPMorgan
      Chase Bank, N.A., as Administrative Agent under the Credit
      Agreement

            

    

     

    
      	
               
      

            	
              5.

            	
              Credit
      Agreement:

            	
              The
      Credit Agreement dated as of February 6, 2009 among Raymond James
      Financial, Inc., the Lenders parties thereto, JPMorgan Chase Bank, N.A.,
      as Administrative Agent, and the other agents parties
    thereto

            

    

     

    
      
        
          C-

          CHI:2133020.12

        

         

      

      
         

        
          

        

      

      
         

      

    

    6.           Assigned
Interest:

     

    
      	
              Facility
      Assigned

            	
              Aggregate
      Amount of Commitment/Loans for all Lenders

            	
              Amount
      of Commitment/Loans Assigned

            	
              Percentage
      Assigned of Commitment/Loans1

            
	
              Revolving
      Commitment

            	
              $

            	
              $

            	
              %

            

    

    

     

    Effective
Date:  _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE
AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE
REGISTER THEREFOR.]

     

    The
Assignee agrees to deliver to the Administrative Agent a completed
Administrative Questionnaire in which the Assignee designates one or more credit
contacts to whom all the syndicate-level information (which may contain material
non-public information about the Borrower and its affiliates and their related
parties or their respective securities) will be made available and who may
receive such information in accordance with the Assignee’s compliance procedures
and applicable laws, including Federal and state securities laws.

     

    The terms
set forth in this Assignment and Assumption are hereby agreed to:

     

    ASSIGNOR

     

    [NAME OF
ASSIGNOR]

     

    By:______________________________

    Title:

     

    ASSIGNEE

     

    [NAME OF
ASSIGNEE]

     

    By:______________________________

    Title:

     

    

      

    

      
      1 Set
forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all
Lenders thereunder.

    

    
      
        
          C-

          CHI:2133020.12

        

         

      

      
         

        
          

        

      

      
         

      

    

    [Consented
to and]2 Accepted:

     

    JPMORGAN
CHASE BANK, N.A., as

     

       Administrative
Agent

     

    By_________________________________

    Title:

     

    [Consented
to:]3

     

    [RAYMOND
JAMES FINANCIAL, INC.]

     

    By___/s/
Jeffrey P. Julien________________

    Title: SVP
& CFO

    

    

     

    

      

    

      
      2 To be
added only if the consent of the Administrative Agent is required by the terms
of the Credit Agreement.

    

      
      3 To be
added only if the consent of the Borrower is required by the terms of the Credit
Agreement.

    

    
      
        
          C-

          CHI:2133020.12

        

         

      

      
         

        
          

        

      

      
         

        
          ANNEX
1

           

          

        

      

    

    

    

     

    RAYMOND
JAMES FINANCIAL INC.

    CREDIT
AGREEMENT

     

    STANDARD
TERMS AND CONDITIONS FOR

    ASSIGNMENT
AND ASSUMPTION

     

    1.           Representations and
Warranties.

     

    1.1           Assignor.  The
Assignor (a) represents and warrants that (i) it is the legal and beneficial
owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of
any lien, encumbrance or other adverse claim and (iii) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated
hereby; and (b) assumes no responsibility with respect to (i) any statements,
warranties or representations made in or in connection with the Credit Agreement
or any other Loan Document, (ii) the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Documents or any
collateral thereunder, (iii) the financial condition of the Borrower, any of its
Subsidiaries or Affiliates or any other Person obligated in respect of any Loan
Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

     

    1.2.           Assignee.  The
Assignee (a) represents and warrants that (i) it has full power and authority,
and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become
a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any,
specified in the Credit Agreement that are required to be satisfied by it in
order to acquire the Assigned Interest and become a Lender, (iii) from and after
the Effective Date, it shall be bound by the provisions of the Credit Agreement
as a Lender thereunder and, to the extent of the Assigned Interest, shall have
the obligations of a Lender thereunder, (iv) it has received a copy of the
Credit Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 6.01 thereof, as applicable, and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and Assumption and to
purchase the Assigned Interest on the basis of which it has made such analysis
and decision independently and without reliance on the Agent or any other
Lender, and (v) if it is a Foreign Lender, attached to the Assignment and
Assumption is any documentation required to be delivered by it pursuant to the
terms of the Credit Agreement, duly completed and executed by the Assignee; and
(b) agrees that (i) it will, independently and without reliance on the
Administrative Agent, the Assignor or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Loan
Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

     

    
      
        
          C-

          CHI:2133020.12

        

         

      

      
         

        
          

        

      

      
         

      

    

    2.           Payments.  From
and after the Effective Date, the Agent shall make all payments in respect of
the Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignor for amounts which have accrued to but excluding the
Effective Date and to the Assignee for amounts which have accrued from and after
the Effective Date.

     

    3.           General Provisions.
This Assignment and Assumption shall be binding upon, and inure to the benefit
of, the parties hereto and their respective successors and
assigns.  This Assignment and Assumption may be executed in any number
of counterparts, which together shall constitute one
instrument.  Delivery of an executed counterpart of a signature page
of this Assignment and Assumption by telecopy shall be effective as delivery of
a manually executed counterpart of this Assignment and
Assumption.  This Assignment and Assumption shall be governed by, and
construed in accordance with, the law of the State of New York.ex1033.htm

    
      

      

    

    

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

                                                                                                     LEASE

                                                                                        (Multi-Tenant;
Net)

      McCarthy
Center

      

      

      

                                                                                                 BETWEEN

      

      

                                                                                  THE IRVINE
COMPANY

      

      

                                                                                                      AND

      

      

      CALIFORNIA
MICRO DEVICES CORPORATION

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

       

      

      
        
          
            701423328v1

          

           

        

        
          
          

          
            

          

        

        
           

        

      

                                                                                                  INDEX TO
LEASE

      

       

      
        	
                 
      

              	
                ARTICLE
      I.  BASIC LEASE PROVISIONS                                                                                                             

              

      

       

      
        	
                 
      

              	
                ARTICLE
      II.  PREMISES                                                                                                                   

              

      

      
        	
                SECTION
    2.1.

              	
                LEASED
      PREMISES

              	
                3

              

      

      
        	
                SECTION
    2.2.

              	
                ACCEPTANCE OF
      PREMISES

              	
                3

              

      

      
        	
                SECTION
    2.3.

              	
                BUILDING NAME AND
      ADDRESS

              	
                3

              

      

      
        	
                SECTION
    2.4.

              	
                RIGHT OF FIRST
      OFFER

              	
                3

              

      

       

      
        	
                 
      

              	
                ARTICLE
      III.  TERM

              

      

      
        	
                SECTION
    3.1.

              	
                GENERAL

              	
                4

              

      

      
        	
                SECTION
    3.2.

              	
                RIGHT TO EXTEND THIS
      LEASE

              	
                4

              

      

       

      
        	
                 
      

              	
                ARTICLE
      IV.  RENT AND OPERATING EXPENSES                                

              

      

      
        	
                SECTION
    4.1.

              	
                BASIC RENT

              	
                5

              

      

      
        	
                SECTION
    4.2.

              	
                OPERATING
      EXPENSES

              	
                5

              

      

      
        	
                SECTION
    4.3.

              	
                SECURITY
      DEPOSIT

              	
                7

              

      

       

      
        	
                 
      

              	
                ARTICLE
      V.  USES7

              

      

      
        	
                 
      

              	
                SECTION 5.1.             USE7

              

      

      
        	
                SECTION
    5.2.

              	
                SIGNS

              	
                8

              

      

      
        	
                SECTION
    5.3.

              	
                HAZARDOUS
      MATERIALS

              	
                8

              

      

       

      
        	
                 
      

              	
                ARTICLE
      VI.  COMMON AREAS; SERVICES                                                    

              

      

      
        	
                SECTION
    6.1.

              	
                UTILITIES AND
      SERVICES

              	
                10

              

      

      
        	
                 
      

              	
                SECTION 6.2.             OPERATION AND MAINTENANCE OF
      COMMON AREAS                                                                         10

              

      

      
        	
                SECTION
    6.3.

              	
                USE OF COMMON
      AREAS

              	
                10

              

      

      
        	
                SECTION
    6.4.

              	
                PARKING

              	
                10

              

      

      
        	
                SECTION
    6.5.

              	
                CHANGES AND ADDITIONS BY
      LANDLORD

              	
                10

              

      

       

      
        	
                 
      

              	
                ARTICLE
      VII.  MAINTAINING THE PREMISES                                            

              

      

      
        	
                SECTION
    7.1.

              	
                TENANT'S MAINTENANCE AND
      REPAIR

              	
                10

              

      

      
        	
                SECTION
    7.2.

              	
                LANDLORD'S MAINTENANCE AND
      REPAIR

              	
                11

              

      

      
        	
                SECTION
    7.3.

              	
                ALTERATIONS

              	
                11

              

      

      
        	
                SECTION
    7.4.

              	
                MECHANIC'S
      LIENS

              	
                12

              

      

      
        	
                SECTION
    7.5.

              	
                ENTRY AND
      INSPECTION

              	
                12

              

      

      
        	
                SECTION
    7.6.

              	
                SPACE PLANNING AND
      SUBSTITUTION

              	
                12

              

      

       

      
        	
                 
      

              	
                ARTICLE
      VIII.  TAXES AND ASSESSMENTS ON TENANT'S PROPERTY                    

              

      

       

      
        	
                 
      

              	
                ARTICLE
      IX.  ASSIGNMENT AND SUBLETTING                                    

              

      

      
        	
                SECTION
    9.1.

              	
                RIGHTS OF
      PARTIES

              	
                13

              

      

      
        	
                SECTION
    9.2.

              	
                EFFECT OF
      TRANSFER

              	
                14

              

      

      
        	
                SECTION
    9.3.

              	
                SUBLEASE
      REQUIREMENTS

              	
                14

              

      

      
        	
                SECTION
    9.4.

              	
                CERTAIN
      TRANSFERS

              	
                15

              

      

       

      
        	
                 
      

              	
                ARTICLE
      X.  INSURANCE AND INDEMNITY                                            

              

      

      
        	
                SECTION
    10.1.

              	
                TENANT'S
      INSURANCE

              	
                15

              

      

      
        	
                SECTION
    10.2.

              	
                LANDLORD'S
      INSURANCE

              	
                15

              

      

      
        	
                SECTION
    10.3.

              	
                TENANT'S
      INDEMNITY

              	
                15

              

      

      
        	
                SECTION
    10.4.

              	
                LANDLORD'S
      NONLIABILITY

              	
                16

              

      

      
        	
                SECTION
    10.5.

              	
                WAIVER OF
      SUBROGATION

              	
                16

              

      

       

      
        	
                 
      

              	
                ARTICLE
      XI.  DAMAGE OR
DESTRUCTION

              

      

      
        	
                SECTION
    11.1.

              	
                RESTORATION

              	
                16

              

      

      
        	
                SECTION
    11.2.

              	
                LEASE
    GOVERNS

              	
                17

              

      

       

      
        	
                 
      

              	
                ARTICLE
      XII.  EMINENT DOMAIN

              

      

      
        	
                SECTION
    12.1.

              	
                TOTAL OR PARTIAL
      TAKING

              	
                17

              

      

      
        	
                SECTION
    12.2.

              	
                TEMPORARY
      TAKING

              	
                18

              

      

      
        	
                SECTION
    12.3.

              	
                TAKING OF PARKING
      AREA

              	
                18

              

      

       

      
        	
                 
      

              	
                ARTICLE
      XIII.  SUBORDINATION; ESTOPPEL CERTIFICATE;
      FINANCIALS

              

      

      
        	
                SECTION
    13.1.

              	
                SUBORDINATION

              	
                18

              

      

      
        	
                SECTION
    13.2.

              	
                ESTOPPEL
      CERTIFICATE

              	
                18

              

      

      
        	
                SECTION
    13.3.

              	
                FINANCIALS

              	
                18

              

      

       

      
        	
                 
      

              	
                ARTICLE
      XIV.  EVENTS OF DEFAULT AND
REMEDIES

              

      

      
        	
                SECTION
    14.1.

              	
                TENANT'S
      DEFAULTS

              	
                19

              

      

      
        	
                SECTION
      14.2.

              	
                LANDLORD'S
      REMEDIES

              	
                20

              

      

      
        
          
            May 5,
2005 

            701423328v1

          

           

        

        
          
          

          
            

          

        

        
           

        

      

      

      
        	
                SECTION
    14.3.

              	
                LATE
    PAYMENTS

              	
                21

              

      

      
        	
                SECTION
    14.4.

              	
                RIGHT OF LANDLORD TO
      PERFORM

              	
                21

              

      

      
        	
                SECTION
    14.5.

              	
                DEFAULT BY
      LANDLORD

              	
                21

              

      

      
        	
                SECTION
    14.6.

              	
                EXPENSES AND LEGAL
      FEES

              	
                22

              

      

      
        	
                SECTION
    14.7.

              	
                WAIVER OF JURY
      TRIAL

              	
                22

              

      

      
        	
                SECTION
    14.8.

              	
                SATISFACTION OF
      JUDGMENT

              	
                22

              

      

      

      
        	
                 
      

              	
                 ARTICLE
      XV.  END OF
TERM

              

      

      
        	
                SECTION
    15.1.

              	
                HOLDING
    OVER

              	
                22

              

      

      
        	
                SECTION
    15.2.

              	
                MERGER ON
      TERMINATION

              	
                22

              

      

      
        	
                 
      

              	
                SECTION 15.3.           SURRENDER OF PREMISES; REMOVAL OF
      PROPERTY                                             
           22

              

      

       

      
        	
                 
      

              	
                ARTICLE
      XVI.  PAYMENTS AND
NOTICES

              

      

       

      
        	
                 
      

              	
                ARTICLE
      XVII.  RULES AND
REGULATIONS

              

      

       

      
        	
                 
      

              	
                ARTICLE
      XVIII.  BROKER'S
COMMISSION

              

      

       

      
        	
                 
      

              	
                ARTICLE
      XIX.  TRANSFER OF LANDLORD'S
INTEREST

              

      

       

      
        	
                 
      

              	
                ARTICLE
      XX.  INTERPRETATION

              

      

      
        	
                SECTION
    20.1.

              	
                GENDER AND
      NUMBER

              	
                24

              

      

      
        	
                SECTION
    20.2.

              	
                HEADINGS

              	
                24

              

      

      
        	
                SECTION
    20.3.

              	
                JOINT AND SEVERAL
      LIABILITY

              	
                24

              

      

      
        	
                SECTION
    20.4.

              	
                SUCCESSORS

              	
                24

              

      

      
        	
                SECTION
    20.5.

              	
                TIME OF
      ESSENCE

              	
                24

              

      

      
        	
                SECTION
    20.6.

              	
                CONTROLLING
      LAW/VENUE

              	
                24

              

      

      
        	
                SECTION
    20.7.

              	
                SEVERABILITY

              	
                24

              

      

      
        	
                SECTION
    20.8.

              	
                WAIVER AND CUMULATIVE
      REMEDIES

              	
                24

              

      

      
        	
                SECTION
    20.9.

              	
                INABILITY TO
      PERFORM

              	
                24

              

      

      
        	
                SECTION
    20.10.

              	
                ENTIRE
      AGREEMENT

              	
                24

              

      

      
        	
                SECTION
    20.11.

              	
                QUIET
      ENJOYMENT

              	
                25

              

      

      
        	
                SECTION
    20.12.

              	
                SURVIVAL

              	
                25

              

      

      
        	
                SECTION
    20.13.

              	
                INTERPRETATION

              	
                25

              

      

       

      
        	
                 
      

              	
                ARTICLE
      XXI.  EXECUTION AND
RECORDING

              

      

      
        	
                SECTION
    21.1.

              	
                COUNTERPARTS

              	
                25

              

      

      
        	
                 
      

              	
                SECTION 21.2.            CORPORATE, LIMITED LIABILITY
      COMPANY AND PARTNERSHIP AUTHORITY                                                                          
  

              

      

      
        	
                SECTION
    21.3.

              	
                EXECUTION OF LEASE; NO OPTION OR
      OFFER

              	
                25

              

      

      
        	
                SECTION
    21.4.

              	
                RECORDING

              	
                25

              

      

      
        	
                SECTION
    21.5.

              	
                AMENDMENTS

              	
                25

              

      

      
        	
                SECTION
    21.6.

              	
                EXECUTED
    COPY

              	
                25

              

      

      
        	
                SECTION
    21.7.

              	
                ATTACHMENTS

              	
                25

              

      

       

      
        	
                 
      

              	
                ARTICLE
      XXII.  MISCELLANEOUS

              

      

      
        	
                SECTION
    22.1.

              	
                NONDISCLOSURE OF LEASE
      TERMS

              	
                26

              

      

      
        	
                SECTION
    22.2.

              	
                GUARANTY

              	
                26

              

      

      
        	
                SECTION
    22.3.

              	
                CHANGES REQUESTED BY
      LENDER

              	
                26

              

      

      
        	
                SECTION
    22.4.

              	
                MORTGAGEE
      PROTECTION

              	
                26

              

      

      
        	
                SECTION
    22.5.

              	
                COVENANTS AND
      CONDITIONS

              	
                26

              

      

      
        	
                SECTION
    22.6.

              	
                SECURITY
      MEASURES

              	
                26

              

      

      
        	
                SECTION
    22.7.

              	
                MOVING
      ALLOWANCE

              	
                26

              

      

      

      

      

      EXHIBITS

        Exhibit
A                                Description
of Premises

        Exhibit
B                                Environmental
Questionnaire

        Exhibit
C                                Landlord's
Disclosures

        Exhibit
D                                Insurance
Requirements

        Exhibit
E                                Rules
and Regulations

        Exhibit
X                                Work
Letter

        Exhibit
Y                                Project
Site Plan

      
        
          
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      LEASE

      (Multi-Tenant;
Net)

       

      THIS
LEASE is made as of the 13th day of
May, 2005, by and between THE IRVINE COMPANY, a Delaware corporation
hereafter called "Landlord," and CALIFORNIA
MICRO DEVICES CORPORATION, a California corporation, hereinafter called "Tenant."

       

      ARTICLE
I.  BASIC LEASE PROVISIONS

       

      Each
reference in this Lease to the "Basic Lease Provisions" shall
mean and refer to the following collective terms, the application of which shall
be governed by the provisions in the remaining Articles of this
Lease.

       

      
        	
                1.

              	
                Premises:  Suite
      No. 100 (the Premises are more particularly described in Section
      2.1).

              

      

       

      
        	 	
                Address
      of Building:  Effective on or about September 1, 2005, the
      address of the Building shall be

              

      

       

      
        	
                 
      

              	
                                                       490
      N. McCarthy Boulevard, Milpitas, CA

              

      

       

      
        	
                2.

              	
                Project
      Description (if
    applicable):  McCarthy Center

              

      

       

      
        	
                3.

              	
                Use
      of Premises:  Office, laboratory, research &
      development.

              

      

       

      
        	
                4.

              	
                Commencement
      Date:  September 1, 2005

              

      

       

      
        	
                5.

              	
                Expiration
      Date:   November 30,
2010

              

      

       

      
        	
                6.

              	
                Basic
      Rent: During the initial three (3) months of the Term of this Lease (and
      subject to the provisions of Section 14.2(d) of the Lease), Tenant shall
      not be obligated to pay Basic Rent.

              

      

       

      
        	 	
                Commencing
      December 1, 2005, the Basic Rent shall be Twenty-One Thousand Four Hundred
      Sixty-Six Dollars ($21,466.00) per month, based on $.80 per rentable
      square foot.

              

      

       

      
        	 	
                Commencing
      December 1, 2006, the Basic Rent shall be Twenty-Two Thousand Three
      Dollars ($22,003.00) per month, based on $.82 per rentable square
      foot.

              

      

       

      
        	 	
                Commencing
      December 1, 2007, the Basic Rent shall be Twenty-Two Thousand Eight
      Hundred Eight Dollars ($22,808.00) per month, based on $.85 per rentable
      square foot.

              

      

       

      
        	 	
                Commencing
      December 1, 2008, the Basic Rent shall be Twenty-Three Thousand Three
      Hundred Forty-Five Dollars ($23,345.00) per month, based on $.87 per
      rentable square foot.

              

      

       

      
        	 	
                Commencing
      December 1, 2009, the Basic Rent shall be Twenty-Four Thousand One Hundred
      Fifty Dollars ($24,150.00) per month, based on $.90 per rentable square
      foot.

              

      

       

      
        	
                7.

              	
                Guarantor(s):  None

              

      

       

      
        	
                8.

              	
                Floor
      Area:  Approximately 26,833 rentable square
  feet

              

      

       

      
        	
                9.

              	
                Security
      Deposit:  $24,150.00

              

      

       

      
        	
                10.

              	
                Broker(s):   CB
      Richard Ellis

              

      

       

      
        	
                11.

              	
                Additional
      Insureds:   McCarthy Center Partners LLC, a Delaware
      limited liability company

              

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

       

      

      
        
          
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                12.

              	
                Address
      for Payments and Notices:

              

      

      
        	
                LANDLORD

              	
                TENANT

              
	
                 

                THE
      IRVINE COMPANY

                550
      Newport Center Drive

                Newport
      Beach, CA 92660

                Attn:  Senior
      Vice President, Operations

                Irvine
      Office Properties

                 

                with
      a copy of notices to:

                 

                THE
      IRVINE COMPANY

                550
      Newport Center Drive

                Newport
      Beach, CA 92660

                Attn:  Vice
      President, Operations

                Irvine
      Office Properties, Technology Portfolio

                 

              	
                CALIFORNIA
      MICRO DEVICES
      CORPORATION                                            490  N.
      McCarthy Boulevard, Suite
      100            Milpitas,
      CA  95035

              

      

       

      
        	
                13.

              	
                Tenant's
      Liability Insurance
  Requirement:  $2,000,000.00

              

      

       

      
        	
                14.

              	
                Vehicle
      Parking Spaces:   One Hundred Seven
  (107)

              

      

      
        
          
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      ARTICLE
II.  PREMISES

       

      SECTION
2.1.                                LEASED
PREMISES.  Landlord leases to Tenant and Tenant leases from
Landlord the premises shown in Exhibit A (the "Premises"), containing
approximately the rentable square footage set forth as the "Floor Area" in Item 8 of the Basic
Lease Provisions and known by the suite number identified in Item 1 of the Basic
Lease Provisions.  The Premises are located in the building identified
in Item 1 of the Basic Lease Provisions (the Premises together with such
building and the underlying real property, are called the "Building"), and is a portion
of the project identified in Item 2 of the Basic Lease Provisions and shown in
Exhibit Y, if
any (the "Project").  If the
Project is not already completed, Landlord makes no representation that the
Project, if any, as shown on Exhibit Y, (a) will be completed or that
it will be constructed as shown on Exhibit Y without change, or (b) to
the extent the Project is constructed, it will not be changed from the Project
as shown on Exhibit Y.  All references to "Floor Area" in this
Lease shall mean the rentable square footage set forth in Item 8 of the
Basic Lease Provisions.  The rentable square footage set forth in
Item 8 may include or have been adjusted by various factors, including,
without limitation, a load factor to allocate a proportionate share of any
vertical penetrations, stairwells, common lobby or common features or areas of
the Building.  Tenant agrees that the Floor Area set forth in Item 8
shall be binding on Landlord and Tenant for purposes of this Lease regardless of
whether any future or differing measurements of the Premises or the Building are
consistent or inconsistent with the Floor Area set forth in Item
8.  The Premises are a portion of certain real property which is
leased by Landlord pursuant to that certain Master Lease dated December 31, 2003
(the "Master Lease") by
and between McCarthy Center Partners LLC, a Delaware limited liability company
("Master Lessor"), as
"Landlord", and Landlord as "Tenant".  That certain Master Lease
(Short Form – Memorandum) was recorded on December 31, 2003 as Document No.
17553727 in the Official Records of Santa Clara County, California.

       

                 From
and after the Commencement Date, Landlord hereby grants to Tenant a
non-exclusive license to use the lobby of the Building as a receiving
area.  Landlord agrees that, so long as Landlord retains the existing
receptionist desk in the lobby area, Tenant shall be entitled to maintain a
telephone, a personal computer, a directory listing its personnel and their
extensions, and instructions to visitors advising them how to contact Tenant’s
personnel on said receptionist desk.  Landlord further agrees that in
the event that Landlord removes the existing receptionist desk from the lobby,
Tenant shall be permitted to install a small desk at the side of the lobby, and
Tenant shall be entitled to maintain the aforementioned telephone, personal
computer, directory and instructions on said desk.  In no event,
however, shall any employees or other personnel of Tenant be “officed” in the
lobby area.  Tenant agrees that it shall remove its existing signage
and literature rack from the lobby on or prior to August 31,
2005.  Tenant’s license of the lobby area shall be subject to each and
every obligation on Tenant’s part under the Lease (including, without
limitation, the obligations of Articles V, VII, VIII, IX, and X of the Lease),
but Tenant shall not be obligated to pay additional Basic Rent for the license
granted herein.  Landlord shall have no responsibility for the loss or
damage of any of Tenant’s equipment or property located in the lobby of the
Building.

       

      SECTION
2.2.                                ACCEPTANCE OF PREMISES. Tenant
acknowledges that neither Landlord nor any representative of Landlord has made
any representation or warranty with respect to the Premises, the Building or the
Project or their respective suitability or fitness for any purpose, including
without limitation any representations or warranties regarding the compliance of
Tenant’s use of the Premises with the applicable zoning or regarding any other
land use matters, and Tenant shall be solely responsible as to such
matters.  Further, neither Landlord nor any representative of Landlord
has made any representations or warranties regarding (i) what other tenants
or uses may be permitted or intended in the Building or the Project,
(ii) any exclusivity of use by Tenant with respect to its permitted use of
the Premises as set forth in Item 3 of the Basic Lease Provisions, or
(iii) any construction of portions of the Project not yet
completed.  Tenant further acknowledges that neither Landlord nor any
representative of Landlord has agreed to undertake any alterations or additions
or construct any improvements to the Premises, and that Tenant’s lease of the
Premises shall be on an “as is” basis.  As of the Commencement Date,
Tenant shall be conclusively deemed to have accepted the Premises and those
portions of the Building and Project in which Tenant has any rights under this
Lease, which acceptance shall mean that it is conclusively established that the
Premises and those portions of the Building and Project in which Tenant has any
rights under this Lease were in satisfactory condition and in conformity with
the provisions of this Lease.

       

      SECTION
2.3.                                BUILDING NAME AND ADDRESS.  Tenant
shall not utilize any name selected by Landlord from time to time for the
Building and/or the Project as any part of Tenant's corporate or trade
name.  Landlord shall have the right to change the name, address,
number or designation of the Building or Project without liability to
Tenant.  Notwithstanding the foregoing, Landlord shall reimburse
Tenant for all reasonable out-of-pocket expenses incurred by Tenant, including
without limitation, Tenant’s costs of obtaining new business cards, stationery
and informing Tenant’s customers and vendors of Tenant’s new address, not to
exceed Ten Thousand Dollars ($10,000.00) in the aggregate, resulting from any
changed name, number or designation of the Building or Project initiated by
Landlord.  Except to the extent reimbursed pursuant to Section 22.7
below, the foregoing reimbursement obligation, shall not apply to the change of
address of the Building to “490 N. McCarthy Boulevard,” which change of address
shall be effective on or about September 1, 2005.

      

      SECTION
2.4.                                RIGHT OF FIRST OFFER.   Provided
that Tenant is not in default of any provision of this Lease beyond any
applicable notice and cure periods, either at the time of
Tenant’s

      
        
          
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      election
of its rights granted herein or the time of the commencement of Tenant’s lease
of any of the “First Right Space” pursuant hereto, and provided further that
Tenant is occupying the entire Premises and has not assigned or sublet any of
its interest in this Lease (except pursuant to a transfer for which Tenant is
not required to obtain Landlord’s consent), Landlord hereby grants Tenant a
one-time right ("First
Right") to lease for the remainder of the initial sixty-three (63) month
Term of this Lease the space on the second floor of the Building, and shown on
Exhibit A (the
"First Right Space"),
all in accordance with and subject to the provisions of this Section
2.4.  At any time after the date of this Lease, but prior to execution
of a new lease of the First Right Space, or any portion thereof, to any third
party, Landlord shall give Tenant written notice of the basic economic terms,
including but not limited to the Basic Rent, term, Operating Expenses, and
tenant improvement allowance, if any  (collectively, the "Economic Terms"), upon which
Landlord is willing to lease such particular First Right Space to Tenant or to a
third party; provided that the Economic Terms shall exclude brokerage
commissions and other Landlord payments that do not directly inure to the
tenant's benefit.  It is further understood and agreed that should
Landlord intend to lease other space in addition to the First Right Space as
part of a single transaction, then Landlord's notice shall so provide and all
such space shall collectively be subject to the following
provisions.  Within five (5) business days after receipt of Landlord's
notice, Tenant must give Landlord written notice pursuant to which Tenant shall
elect to (i) lease all, but not less than all, of the space specified in
Landlord's notice (the "Designated Space") upon such
Economic Terms and the same non-Economic Terms as set forth in this Lease; or
(ii) decline to so lease the Designated Space.  In the event that
Tenant does not so respond in writing to Landlord's notice within said period,
Tenant shall be deemed to have elected clause (ii) above.  Should
Tenant elect to lease the Designated Space pursuant to clause (i) above, then
Landlord shall promptly prepare and deliver to Tenant an amendment to this Lease
consistent with the foregoing, and Tenant shall execute and return same to
Landlord within ten (10) business days. Tenant's failure to timely return the
amendment shall entitle Landlord, at its election, to specifically enforce
Tenant's commitment to lease the Designated Space, to terminate Tenant=s
First Right hereunder and lease such space to any third party, and/or to pursue
any other available legal remedy.  Tenant=s
election (or deemed election) to decline to lease the Designated Space pursuant
to clause (ii) above, shall thereupon terminate Tenant=s
First Right and any further rights of Tenant and to the First Right
Space.  It is understood and agreed that Tenant's First Right shall be
subject to any extension or expansion rights granted by Landlord to (or agreed
to by and between Landlord and) Dialpad Communications, Inc. (“Dialpad”) and any
successors-in-interest to Dialpad under Landlord’s lease with Dialpad, and in no
event shall any such First Right Space be deemed available for leasing until
Dialpad shall have vacated the First Right Space.  Tenant's rights
under this Section 2.4 shall belong solely to California Micro Devices
Corporation, a California corporation and to any assignee to whom California
Micro Devices Corporation may transfer its interest under this Lease without
Landlord’s consent, and any attempted assignment or transfer of such rights
shall be void and of no force or effect.

       

      ARTICLE
III.  TERM

       

      SECTION
3.1.                                GENERAL.  The term
of this Lease (“Term”)
shall commence on the date set forth in Item 4 of the Basic Lease Provisions
(the “Commencement
Date”), and shall expire on the date set forth in Item 5 of the Basic
Lease Provisions (the “Expiration
Date”).

      SECTION
3.2.                                           RIGHT TO EXTEND THIS
LEASE.  Provided that Tenant is not in default of any provision
of this Lease beyond any applicable notice and cure periods, either at the time
of exercise of the extension right granted herein or at the time of the
commencement of such extension, and provided further that Tenant is occupying
the entire Premises and has not assigned or sublet any of its interest in this
Lease, then Tenant may extend the Term of this Lease for one (1) period of sixty
(60) months.  Tenant shall exercise its right to extend the Term by
and only by delivering to Landlord, not less than nine (9) months or more than
twelve (12) months prior to the expiration date of the Term, Tenant=s
irrevocable written notice of its commitment to extend (the ACommitment Notice@).  The
Basic Rent payable under the Lease during any extension of the Term shall be
determined as provided in the following provisions.

      

      If
Landlord and Tenant have not by then been able to agree upon the Basic Rent for
the extension of the Term, then within one hundred twenty (120) and ninety (90)
days prior to the expiration date of the Term, Landlord shall notify Tenant in
writing (“Landlord’s
Determination”) of the Basic Rent that would reflect ninety-five percent
(95%) of the prevailing market rental rate for a 60-month renewal of comparable
space in the Project (together with any increases thereof during the extension
period) as of the commencement of the extension period (the “95% FMR”).  Should
Tenant disagree with the Landlord=s
Determination, then Tenant shall, not later than twenty (20) days thereafter,
notify Landlord in writing of Tenant=s
determination of the 95% FMR (ATenant=s Determination@).   In
no event, however, shall Landlord's Determination or Tenant's Determination be
less than the Basic Rent payable by Tenant during the then-scheduled final month
of the initial Term.  Within ten (10) days following delivery of the
Tenant's Determination, the parties shall attempt to agree on an appraiser to
determine the 95% FMR.  If the parties are unable to agree in that
time, then each party shall designate an appraiser within ten (10) days
thereafter.  Should either party fail to so designate an appraiser
within that time, then the appraiser designated by the other party shall
determine the fair market rental.  Should each of the parties timely
designate an appraiser, then the two appraisers so designated shall appoint a
third appraiser who shall, acting alone, determine the 95% FMR for the
Premises.  Any appraiser designated hereunder shall have an MAI
certification with not less than five (5) years experience in the valuation of
commercial industrial buildings in the vicinity of the Project.

      

      Within
thirty (30) days following the selection of the appraiser and such
appraiser=s
receipt of the Landlord=s
Determination and the Tenant=s
Determination, the appraiser shall determine whether the
Landlord’s

      
        
          
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      Determination
or the Tenant’s Determination more accurately reflects the 95% FMR for the
applicable 60-month renewal of the Lease for the Premises, as reasonably
extrapolated to the commencement of the extension
period.  Accordingly, either the Landlord=s
Determination or the Tenant=s
Determination shall be selected by the appraiser as the 95% FMR for the
extension period.   In making such determination, the appraiser
shall consider rental comparables for the Project for similarly improved space
within the vicinity of the Project with appropriate adjustment for location and
quality of project, but the appraiser shall not attribute any factor for market
tenant improvement allowances or brokerage commissions in making its
determination of the 95% FMR.  At any time before the decision of the
appraiser is rendered, either party may, by written notice to the other party,
accept the rental terms submitted by the other party, in which event such terms
shall be deemed adopted as the agreed fair market rental.  The fees of
the appraiser designated by each of the parties shall be borne entirely by the
designating party, and the fees of the third appraiser shall be borne entirely
by the party whose determination of the fair market rental rate was not accepted
by said third appraiser.

      

      Within
twenty (20) days after the determination of the 95% FMR as provided in this
Section, Landlord shall prepare an appropriate amendment to this Lease for the
extension period, and Tenant shall execute and return same to Landlord within
ten (10) days after Tenant’s receipt of same.  Should the 95% FMR not
be established by the commencement of the extension period, then Tenant shall
continue paying rent at the rate in effect during the last month of the initial
Term, and a lump sum adjustment shall be made promptly upon the determination of
such new rental.

      

      If Tenant
fails to timely exercise the extension right granted herein within the time
period expressly set forth for exercise by Tenant in the initial paragraph of
this Section, Tenant's right to extend the Term shall be extinguished and the
Lease shall automatically terminate as of the expiration date of the Term,
without any extension and without any liability to Landlord.  Any
attempt to assign or transfer any right or interest created by this paragraph
shall be void from its inception.  Tenant shall have no other right to
extend the Term beyond the single sixty (60) month extension period created by
this paragraph.  Unless agreed to in a writing signed by Landlord and
Tenant, any extension of the Term, whether created by an amendment to this Lease
or by a holdover of the Premises by Tenant, or otherwise, shall be deemed a part
of, and not in addition to, any duly exercised extension period permitted by
this paragraph.

       

      ARTICLE
IV.  RENT AND OPERATING EXPENSES

       

      SECTION
4.1.                                BASIC RENT.  From and after
the Commencement Date, Tenant shall pay to Landlord without deduction or offset,
the rental amount for the Premises shown in Item 6 of the Basic Lease Provisions
(the "Basic Rent"),
including subsequent adjustments, if any.  Any rental adjustment to
Basic Rent shown in Item 6 shall be deemed to occur on the specified monthly
anniversary of the Commencement Date, whether or not the Commencement Date
occurs at the end of a calendar month.  The rent shall be due and
payable in advance commencing on the Commencement Date (as prorated for any
partial month) and continuing thereafter on the first day of each successive
calendar month of the Term.  No demand, notice or invoice shall be
required for the payment of Basic Rent.  An installment of rent in the
amount of one (1) full month's Basic Rent at the initial rate specified in Item
6 of the Basic Lease Provisions and one (1) month's estimated Tenant's Share of
Operating Expenses (as defined in Section 4.2) shall be delivered to
Landlord concurrently with Tenant's execution of this Lease and shall be applied
against the Basic Rent and Operating Expenses first due hereunder.

       

      SECTION
4.2.                                OPERATING
EXPENSES.

       

      (a)           From
and after Commencement Date, Tenant shall pay to Landlord, as additional rent,
Tenant's Share of all Operating Expenses, as defined in Section 4.2(f), incurred
by Landlord in the operation of the Building and the Project.  The
term "Tenant's Share"
means that portion of any Operating Expenses determined by multiplying the cost
of such item by a fraction, the numerator of which is the Floor Area and the
denominator of which is the total rentable square footage, as determined from
time to time by Landlord, of (i) the Building, for expenses determined by
Landlord to benefit or relate substantially to the Building rather than the
entire Project, (ii) all or some of the buildings in the Project, as determined
by Landlord, for expenses determined by Landlord to benefit or relate
substantially to all or some of the buildings in the Project rather than any
specific building or (iii) all or some of the buildings within the Project as
well as all or a portion of other property owned by Landlord and/or its
affiliates, for expenses which benefit or relate to such buildings within the
Project and such other real property.  Landlord and Tenant acknowledge
and agree that, as of the Commencement Date of this Lease (but subject to
adjustment thereafter as provided in the foregoing provisions), “Tenant Share”
of the expenses which benefit or relate substantially to the Building pursuant
to Subsection (i) above is fifty percent (50%), and “Tenant’s Share” of expenses
which benefit or relate substantially to all or some of the buildings in the
Project pursuant to Subsection (ii) above is eleven and forty-eight/one
hundredths percent (11.48%).  In the event that Landlord determines in
its sole and absolute discretion that any premises within the Building or any
building within the Project or any portion of a building or project within a
larger area incurs a non-proportional benefit from any expense, or is the
non-proportional cause of any such expense, Landlord may, allocate a greater
percentage of such Operating Expense to such premises, building or project, as
applicable.  The full amount of any management fee payable by Landlord
for the management of Tenant's Premises that is calculated as a percentage of
the rent payable by Tenant shall be paid in full by Tenant as additional
rent.

       

      (b)           Prior
to the start of each full Expense Recovery Period (as defined in this Section
4.2), Landlord shall give Tenant a written estimate of the amount of Tenant's
Share of Operating Expenses for the applicable

      
        
          
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      Expense
Recovery Period.  Failure to provide such estimate shall not relieve
Tenant from its obligation to pay Tenant's Share of Operating Expenses or
estimated amounts thereof, if and when Landlord provides such estimate or final
payment amount.  Tenant shall pay the estimated amounts to Landlord in
equal monthly installments, in advance concurrently with payments of Basic
Rent.  If Landlord has not furnished its written estimate for any
Expense Recovery Period by the time set forth above, Tenant shall continue to
pay monthly the estimated Tenant's Share of Operating Expenses in effect during
the prior Expense Recovery Period; provided that when the new estimate is
delivered to Tenant, Tenant shall, at the next monthly payment date, pay any
accrued estimated Tenant's Share of Operating Expenses based upon the new
estimate.  For purposes hereof, "Expense Recovery Period" shall
mean every twelve month period during the Term (or portion thereof for the first
and last lease years) commencing July 1 and ending June 30, provided
that Landlord shall have the right to change the date on which an Expense
Recovery Period commences in which event appropriate reasonable adjustments
shall be made to Tenant's Share of Operating Expenses so that the amount payable
by Tenant shall not materially vary as a result of such change.

       

      (c)           Within
one hundred twenty (120) days after the end of each Expense Recovery Period,
Landlord shall furnish to Tenant a statement showing in reasonable detail the
actual or prorated Tenant's Share of Operating Expenses incurred by Landlord
during the period, and the parties shall within thirty (30) days thereafter make
any payment or allowance necessary to adjust Tenant's estimated payments of
Tenant's Share of Operating Expenses, if any, to the actual Tenant's Share of
Operating Expenses as shown by the annual statement.  Any delay or
failure by Landlord in delivering any statement hereunder shall not constitute a
waiver of Landlord's right to require Tenant to pay Tenant's Share of Operating
Expenses pursuant hereto.  Any amount due Tenant shall be credited
against installments next coming due under this Section 4.2, and any deficiency
shall be paid by Tenant together with the next installment.  Should
Tenant fail to object in writing to Landlord's determination of Tenant's Share
of Operating Expenses within sixty (60) days following delivery of Landlord's
expense statement, Landlord's determination of Tenant's Share of Operating
Expenses for the applicable Expense Recovery Period shall be conclusive and
binding on the parties for all purposes and any future claims to the contrary
shall be barred.

       

      (d)           Even
though this Lease has terminated and the Tenant has vacated the Premises, when
the final determination is made of Tenant's Share of Operating Expenses for the
Expense Recovery Period in which this Lease terminates, Tenant shall within
thirty (30) days of written notice pay the entire increase over the estimated
Tenant's Share of Operating Expenses already paid.  Conversely, any
overpayment by Tenant shall be rebated by Landlord to Tenant not later than
thirty (30) days after such final determination.

       

      (e)           If,
at any time during any Expense Recovery Period, any one or more of the Operating
Expenses are increased to a rate(s) or amount(s) in excess of the rate(s) or
amount(s) used in calculating the estimated Tenant's Share of Operating Expenses
for the year, then the estimate of Tenant's Share of Operating Expenses may be
increased by written notice from Landlord for the month in which such rate(s) or
amount(s) becomes effective and for all succeeding months by an amount equal to
Tenant's Share of the increase.  If Landlord gives Tenant written
notice of the amount or estimated amount of the increase, the month in which the
increase will or has become effective, then Tenant shall pay the increase to
Landlord as a part of Tenant's monthly payments of the estimated Tenant's Share
of Operating Expenses as provided in Section 4.2(b), commencing with the
month following Tenant's receipt of Landlord's notice.  In addition,
Tenant shall pay upon written request any such increases which were incurred
prior to the Tenant commencing to pay such monthly increase.

       

      (f)           Subject
to the exclusions set forth in subsection (i) below, the term "Operating Expenses" shall mean
and include all Project Costs, as defined in subsection (g), and Property
Taxes, as defined in subsection (h).

       

      (g)           The
term "Project Costs"
shall include all expenses of operation, repair and maintenance of the Building
and the Project, including without limitation all appurtenant Common Areas (as
defined in Section 6.2), and shall include the following charges by way of
illustration but not limitation:  water and sewer charges; insurance
premiums and deductibles and/or reasonable premium and deductible equivalents
should Landlord elect to self-insure all or any portion of any risk that
Landlord is authorized to insure hereunder; license, permit, and inspection
fees; light; power; window washing; trash pickup; janitorial services to any
interior Common Areas; heating, ventilating and air conditioning; supplies;
materials; equipment; tools; the cost of any environmental, insurance, tax or
other consultant utilized by Landlord in connection with the Building and/or
Project; establishment of reasonable reserves for replacements and/or repairs;
costs incurred in connection with compliance with any laws or changes in laws
applicable to the Building or the Project; the cost of any capital investments
or replacements (other than tenant improvements for specific tenants) but only
to the extent of the amortized amount thereof over the useful life of such
capital investments or replacements calculated at a market cost of funds, all as
determined by Landlord, for each such year of useful life during the Term; costs
associated with the maintenance of an air conditioning, heating and ventilation
service agreement, and maintenance of an intrabuilding network cable service
agreement for any intrabuilding network cable telecommunications lines within
the Project, and any other installation, maintenance, repair and replacement
costs associated with such lines; capital costs associated with a requirement
related to demands on utilities by Project tenants, including without limitation
the cost to obtain additional phone connections; labor; reasonably allocated
wages and salaries, fringe benefits, and payroll taxes for administrative and
other personnel directly applicable to the Building and/or Project, including
both Landlord's personnel and outside personnel; any expense incurred pursuant
to Sections 6.1, 6.2, 6.4, 7.2, and 10.2; and a reasonable overhead/management
fee for the professional operation of the Project.  It is understood
and agreed that Project Costs may include competitive charges for direct
services (including, without limitation, management and/or operations services)
provided by any subsidiary, division or affiliate of Landlord.

       

      (h)           The
term "Property Taxes" as
used herein shall include any form of federal, state, county or local government
or municipal taxes, fees, charges or other impositions of every kind (whether
general, special, ordinary

      
        
          
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      or
extraordinary) related to the ownership, leasing or operation of the Premises,
Building or Project, including without limitation, the following:  (i)
all real estate taxes or personal property taxes, as such property taxes may be
reassessed from time to time; and (ii) other taxes, charges and assessments
which are levied with respect to this Lease or to the Building and/or the
Project, and any improvements, fixtures and equipment and other property of
Landlord located in the Building and/or the Project, (iii) all assessments and
fees for public improvements, services, and facilities and impacts thereon,
including without limitation arising out of any Community Facilities Districts,
"Mello Roos" districts, similar assessment districts, and any traffic impact
mitigation assessments or fees; (iv) any tax, surcharge or assessment which
shall be levied in addition to or in lieu of real estate or personal property
taxes, other than taxes covered by Article VIII; and (v) taxes based on the
receipt of rent (including gross receipts or sales taxes applicable to the
receipt of rent), and (vi) costs and expenses incurred in contesting the amount
or validity of any Property Tax by appropriate proceedings.

       

      (i)           The
term “Operating
Expenses” shall specifically exclude the following: (i) all excess
profits taxes, franchise taxes, gift taxes, capital stock taxes, inheritance and
succession taxes, estate taxes, federal and state income taxes, and other taxes
to the extent applicable to Landlord’s general or net income (as opposed to
rents, receipts or income attributable to operations at the Building), (ii) the
cost of providing tenant improvements to, or other specific costs incurred for
the account of, separately billed to and paid by, other tenants of the Building
or Project, (iii) the initial construction cost of the Building, or debt service
on any mortgage or deed of trust recorded with respect to the Building, (iv)
sums (other than management fees) paid to subsidiaries or other affiliates of
Landlord for services on or to the Building or Project to the extent that the
costs of such services exceed the competitive cost for such services rendered by
persons or entities of similar skill, competence and experience, (v) and fines,
penalties or interest resulting from the breach by Landlord of its obligations
under this Lease, (vi) advertising and promotional expenditures, (vii)
Landlord’s charitable and political contributions, (viii) ground lease rental,
(ix) all costs of purchasing or leasing major sculptures, paintings or
other  major works or objects of art, (x) any expenses for which
Landlord has received actual reimbursement, (xi) costs incurred by Landlord in
connection with the correction of defects in design and original construction of
the Building or the Project, (xii) expenses for the replacement of any item
covered under warranty, unless Landlord has not received payment under such
warranty, or (xiii) fines or penalties incurred as a result of violation by
Landlord of any applicable laws or regulations.

       

      SECTION
4.3.                                SECURITY DEPOSIT.  Concurrently with
Tenant's delivery of this Lease, Tenant shall deposit with Landlord the sum, if
any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as
security for the full and faithful performance of all of Tenant's obligations
under this Lease (the "Security
Deposit"). Landlord shall not be required to keep this Security Deposit
separate from its general funds, and Tenant shall not be entitled to interest on
the Security Deposit.  Subject to the last sentence of this Section,
the Security Deposit shall be understood and agreed to be the property of
Landlord upon Landlord's receipt thereof, and may be utilized by Landlord in its
sole and absolute discretion towards the payment of all expenses by Landlord for
which Tenant would be required to reimburse Landlord under this Lease, including
without limitation brokerage commissions and Tenant Improvement
costs.  Upon any Event of Default by Tenant (as defined in Section
14.1), Landlord may, in its sole and absolute discretion, retain, use or apply
the whole or any part of the Security Deposit to pay any sum which Tenant is
obligated to pay under this Lease, sums that Landlord may expend or be required
to expend by reason of the Event of Default by Tenant or any loss or damage that
Landlord may suffer by reason of the Event of Default or costs incurred by
Landlord in connection with the repair or restoration of the Premises pursuant
to Section 15.3 of this Lease upon expiration or earlier termination of this
Lease.  In no event shall Landlord be obligated to apply the Security
Deposit upon an Event of Default and Landlord's rights and remedies resulting
from an Event of Default, including without limitation, Tenant's failure to pay
Basic Rent, Tenant's Share of Operating Expenses or any other amount due to
Landlord pursuant to this Lease, shall not be diminished or altered in any
respect due to the fact that Landlord is holding the Security
Deposit.  If any portion of the Security Deposit is applied by
Landlord as permitted by this Section, Tenant shall within five (5) days after
written demand by Landlord deposit cash with Landlord in an amount sufficient to
restore the Security Deposit to its original amount. If Tenant fully performs
its obligations under this Lease, the Security Deposit shall be returned to
Tenant (or, at Landlord's option, to the last assignee of Tenant's interest in
this Lease) within thirty (30) days after the expiration of the Term, provided
that Tenant agrees that Landlord may retain the Security Deposit to the extent
and until such time as all amounts due from Tenant in accordance with this Lease
have been determined and paid in full and Tenant agrees that Tenant shall have
no claim against Landlord for Landlord's retaining such Security Deposit to the
extent provided in this Section.

       

      ARTICLE
V.  USES

       

      SECTION
5.1.                                USE.  Tenant shall use
the Premises only for the purposes stated in Item 3 of the Basic Lease
Provisions, all in accordance with applicable laws and restrictions and pursuant
to approvals to be obtained by Tenant from all relevant and required
governmental agencies and authorities.  The parties agree that any
contrary use shall be deemed to cause material and irreparable harm to Landlord
and shall entitle Landlord to injunctive relief in addition to any other
available remedy.  Tenant, at its expense, shall procure, maintain and
make available for Landlord's inspection throughout the Term, all governmental
approvals, licenses and permits required for the proper and lawful conduct of
Tenant's permitted use of the Premises.  Tenant shall not do or permit
anything to be done in or about the Premises which will in any way interfere
with the rights of other occupants of the Building or the Project, or use or
allow the Premises to be used for any unlawful purpose, nor shall Tenant permit
any nuisance or commit any waste in the Premises or the
Project.  Tenant shall not perform any work or conduct any business
whatsoever in the Project other than inside the Premises.  Tenant
shall not do or permit to be done anything which will invalidate or increase the
cost of any insurance policy(ies) covering the Building, the Project and/or
their contents, and shall comply with all applicable

      
        
          
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      insurance
underwriters rules.  Tenant shall comply at its expense with all
present and future laws, ordinances, restrictions, regulations, orders, rules
and requirements of all governmental authorities that pertain to Tenant or its
use of the Premises, including without limitation all federal and state
occupational health and safety requirements, whether or not Tenant's compliance
will necessitate expenditures or interfere with its use and enjoyment of the
Premises.  Tenant shall comply at its expense with all present and
future covenants, conditions, easements or restrictions now or hereafter
affecting or encumbering the Building and/or Project, and any amendments or
modifications thereto, including without limitation the payment by Tenant of any
periodic or special dues or assessments charged against the Premises or Tenant
which may be allocated to the Premises or Tenant in accordance with the
provisions thereof.  Tenant shall promptly upon demand reimburse
Landlord for any additional insurance premium charged by reason of Tenant's
failure to comply with the provisions of this Section, and shall indemnify
Landlord from any liability and/or expense resulting from Tenant's
noncompliance.

       

      SECTION
5.2.                                SIGNS.  Except as
approved in writing by Landlord, in its sole and absolute discretion, Tenant
shall have no right to maintain signs in any location in, on or about the
Premises, the Building or the Project and shall not place or erect any signs
that are visible from the exterior of the Building.  Notwithstanding
the foregoing, Landlord agrees and acknowledges that Tenant’s existing signage
located on the east side of the Building (the “Existing Signage”) is approved
by Landlord, and Tenant may continue to maintain Existing Signage during the
Term, as such may be extended.  The size, design, graphics, material,
style, color and other physical aspects of any permitted sign shall be subject
to Landlord's written determination, as determined solely by Landlord, prior to
installation, that signage is in compliance with any covenants, conditions or
restrictions encumbering the Premises and Landlord's signage program for the
Project, as in effect from time to time and approved by the City in which the
Premises are located ("Signage
Criteria").  Prior to placing or erecting any such signs,
Tenant shall obtain and deliver to Landlord a copy of any applicable municipal
or other governmental permits and approvals and comply with any applicable
insurance requirements for such signage.  Tenant shall be responsible
for the cost of any permitted sign, including the fabrication, installation,
maintenance and removal thereof and the cost of any permits
therefor.  If Tenant fails to maintain its sign in good condition, or
if Tenant fails to remove same upon termination of this Lease and repair and
restore any damage caused by the sign or its removal, Landlord may do so at
Tenant's expense.  Landlord shall have the right to temporarily remove
any signs in connection with any repairs or maintenance in or upon the
Building.  The term "sign" as used in this Section shall include all
signs, designs, monuments, displays, advertising materials, logos, banners,
projected images, pennants, decals, pictures, notices, lettering, numerals or
graphics.  Notwithstanding the foregoing, Landlord agrees and
acknowledges that it shall, during the Term, as such may be extended, continue
to maintain the existing monument sign located in front of the Building, which
monument sign includes Tenant’s signage.

       

      SECTION
5.3.                                HAZARDOUS
MATERIALS.

       

      (a)           For
purposes of this Lease, the term "Hazardous Materials" includes
(i) any "hazardous material" as defined in Section 25501(o) of the
California Health and Safety Code, (ii) hydrocarbons, polychlorinated biphenyls
or asbestos, (iii) any toxic or hazardous materials, substances, wastes or
materials as defined pursuant to any other applicable state, federal or local
law or regulation, and (iv) any other substance or matter which may result
in liability to any person or entity as a result of such person's possession,
use, release or distribution of such substance or matter under any statutory or
common law theory.

       

      (b)           Tenant
shall not cause or permit any Hazardous Materials to be brought upon, stored,
used, generated, released or disposed of on, under, from or about the Premises
(including without limitation the soil and groundwater thereunder) without the
prior written consent of Landlord, which consent may be given or withheld in
Landlord's sole and absolute discretion.  Notwithstanding the
foregoing, Tenant shall have the right, without obtaining prior written consent
of Landlord, to utilize within the Premises a reasonable quantity of standard
office products that may contain Hazardous Materials (such as photocopy toner,
"White Out", and the like), and reasonable quantity of laboratory products that
may contain Hazardous Materials (such as acetone, isopropyl alcohol, Propanol,
Amber clean, Alpha Flux, PC board etching solution, vacuum pump oil (ULVAC
SMR-100), provided however, that
(i) Tenant shall maintain such products in their original retail packaging,
shall follow all instructions on such packaging with respect to the storage, use
and disposal of such products, and shall otherwise comply with all applicable
laws with respect to such products, and (ii) all of the other terms and
provisions of this Section 5.3 shall apply with respect to Tenant's
storage, use and disposal of all such products.  Landlord may, in its
sole and absolute discretion, place such conditions as Landlord deems
appropriate with respect to Tenant's use of any such Hazardous Materials, and
may further require that Tenant demonstrate that any such Hazardous Materials
are necessary or useful to Tenant's business and will be generated, stored, used
and disposed of in a manner that complies with all applicable laws and
regulations pertaining thereto and with good business
practices.  Tenant understands that Landlord may utilize an
environmental consultant to assist in determining conditions of approval in
connection with the storage, generation, release, disposal or use of Hazardous
Materials by Tenant on or about the Premises, and/or to conduct periodic
inspections of the storage, generation, use, release and/or disposal of such
Hazardous Materials by Tenant on and from the Premises, and Tenant agrees that
any costs incurred by Landlord in connection therewith shall be reimbursed by
Tenant to Landlord as additional rent hereunder upon demand.

       

      (c)           Prior
to the execution of this Lease, Tenant shall complete, execute and deliver to
Landlord an Environmental Questionnaire and Disclosure Statement (the "Environmental Questionnaire")
in the form of Exhibit B
attached hereto.  The completed Environmental Questionnaire shall be
deemed incorporated into this Lease for all purposes, and Landlord shall be
entitled to rely fully on the information contained therein.  On each
anniversary of the Commencement Date until the expiration or sooner termination
of this Lease, Tenant shall disclose to Landlord in writing the names and
amounts of all Hazardous Materials which were stored,
generated,

      
        
          
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      used,
released and/or disposed of on, under or about the Premises for the twelve-month
period prior thereto, and which Tenant desires to store, generate, use, release
and/or dispose of on, under or about the Premises for the succeeding
twelve-month period.  In addition, to the extent Tenant is permitted
to utilize Hazardous Materials upon the Premises, Tenant shall promptly provide
Landlord with complete and legible copies of all the following environmental
documents relating thereto:  reports filed pursuant to any
self-reporting requirements; permit applications, permits, monitoring reports,
emergency response or action plans, workplace exposure and community exposure
warnings or notices and all other reports, disclosures, plans or documents (even
those which may be characterized as confidential) relating to water discharges,
air pollution, waste generation or disposal, and underground storage tanks for
Hazardous Materials; orders, reports, notices, listings and correspondence (even
those which may be considered confidential) of or concerning the release,
investigation of, compliance, cleanup, remedial and corrective actions, and
abatement of Hazardous Materials; and all complaints, pleadings and other legal
documents filed by or against Tenant related to Tenant's use, handling, storage,
release and/or disposal of Hazardous Materials.

       

      (d)           Landlord
and its agents shall have the right, but not the obligation, to inspect, sample
and/or monitor the Premises and/or the soil or groundwater thereunder at any
time to determine whether Tenant is complying with the terms of this
Section 5.3, and in connection therewith Tenant shall provide Landlord with
full access to all facilities, records and personnel related
thereto.  If Tenant is not in compliance with any of the provisions of
this Section 5.3, or in the event of a release of any Hazardous Material
on, under or about the Premises caused or permitted by Tenant, its agents,
employees, contractors, licensees or invitees, Landlord and its agents shall
have the right, but not the obligation, without limitation upon any of
Landlord's other rights and remedies under this Lease, to immediately enter upon
the Premises without notice and to discharge Tenant's obligations under this
Section 5.3 at Tenant's expense, including without limitation the taking of
emergency or long-term remedial action.  Landlord and its agents shall
endeavor to minimize interference with Tenant's business in connection
therewith, but shall not be liable for any such interference.  In
addition, Landlord, at Tenant's expense, shall have the right, but not the
obligation, to join and participate in any legal proceedings or actions
initiated in connection with any claims arising out of the storage, generation,
use, release and/or disposal by Tenant or its agents, employees, contractors,
licensees or invitees of Hazardous Materials on, under, from or about the
Premises.

       

      (e)           If
the presence of any Hazardous Materials on, under, from or about the Premises or
the Project caused or permitted by Tenant or its agents, employees, contractors,
licensees or invitees results in (i) injury to any person, (ii) injury
to or any contamination of the Premises or the Project, or (iii) injury to
or contamination of any real or personal property wherever situated, Tenant, at
its expense, shall promptly take all actions necessary to return the Premises
and the Project and any other affected real or personal property owned by
Landlord to the condition existing prior to the introduction of such Hazardous
Materials and to remedy or repair any such injury or contamination, including
without limitation, any cleanup, remediation, removal, disposal, neutralization
or other treatment of any such Hazardous Materials.  Notwithstanding
the foregoing, Tenant shall not, without Landlord's prior written consent, which
consent may be given or withheld in Landlord's sole and absolute discretion,
take any remedial action in response to the presence of any Hazardous Materials
on, from, under or about the Premises or the Project or any other affected real
or personal property owned by Landlord or enter into any similar agreement,
consent, decree or other compromise with any governmental agency with respect to
any Hazardous Materials claims; provided however, Landlord's prior written
consent shall not be necessary in the event that the presence of Hazardous
Materials on, under or about the Premises or the Project or any other affected
real or personal property owned by Landlord (i) imposes an immediate threat
to the health, safety or welfare of any individual and (ii) is of such a
nature that an immediate remedial response is necessary and it is not possible
to obtain Landlord's consent before taking such action.  To the
fullest extent permitted by law, Tenant shall indemnify, hold harmless, protect
and defend (with attorneys acceptable to Landlord) Landlord and Master Lessor,
and any successors to all or any portion of Landlord's and/or Master Lessor's
interest in the Premises and in the Project and in any other real or personal
property owned by Landlord or Master Lessor, from and against any and all
liabilities, losses, damages, diminution in value, judgments, fines, demands,
claims, recoveries, deficiencies, costs and expenses (including without
limitation attorneys' fees, court costs and other professional expenses),
whether foreseeable or unforeseeable, arising directly or indirectly out of the
use, generation, storage, treatment, release, on- or off-site disposal or
transportation of Hazardous Materials (A) on, into, from, under or about the
Premises during the Term regardless of the source of such Hazardous Materials
unless caused solely by Landlord or (B) on, into, from, under or about the
Premises, the Building or the Project and any other real or personal property
owned by Landlord or Master Lessor caused or permitted by Tenant, its agents,
employees, contractors, licensees or invitees.  Such indemnity
obligation shall specifically include, without limitation, the cost of any
required or necessary repair, restoration, cleanup or detoxification of the
Premises, the Building and the Project and any other real or personal property
owned by Landlord or Master Lessor, the preparation of any closure or other
required plans, whether or not such action is required or necessary during the
Term or after the expiration of this Lease and any loss of rental due to the
inability to lease the Premises or any portion of the Building or Project as a
result of such Hazardous Material or remediation thereof.  If it is at
any time discovered that Tenant or its agents, employees, contractors, licensees
or invitees may have caused or permitted the release of a Hazardous Material on,
under, from or about the Premises, the Building or the Project or any other real
or personal property owned by Landlord or Master Lessor, Tenant shall, at
Landlord's request, immediately prepare and submit to Landlord a comprehensive
plan, subject to Landlord's approval, specifying the actions to be taken by
Tenant to return the Premises, the Building or the Project or any other real or
personal property owned by Landlord or Master Lessor, to the condition existing
prior to the introduction of such Hazardous Materials.  Upon
Landlord's approval of such cleanup plan, Tenant shall, at its expense, and
without limitation of any rights and remedies of Landlord under this Lease or at
law or in equity, immediately implement such plan and proceed to cleanup such
Hazardous Materials in accordance with all applicable laws and as required by
such plan and this Lease.  The provisions of this Section 5.3(e) shall
expressly survive the expiration or sooner termination of this
Lease.

      
        
          
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      (f)           Landlord
hereby discloses to Tenant, and Tenant hereby acknowledges, certain facts
relating to Hazardous Materials at the Project known by Landlord to exist as of
the date of this Lease, as more particularly described in Exhibit C
attached hereto.  Tenant shall have no liability or responsibility
with respect to the Hazardous Materials facts described in Exhibit C, nor
with respect to any Hazardous Materials which Tenant proves were neither
released on the Premises during the Term nor caused or permitted by Tenant, its
agents, employees, contractors, licensees or
invitees.  Notwithstanding the preceding two sentences, Tenant agrees
to notify its agents, employees, contractors, licensees, and invitees of any
exposure or potential exposure to Hazardous Materials at the Premises that
Landlord brings to Tenant's attention.  Tenant hereby acknowledges
that this disclosure satisfies any obligation of Landlord to Tenant pursuant to
California Health & Safety Code Section 25359.7, or any amendment or
substitute thereto or any other disclosure obligations of Landlord.

       

      ARTICLE
VI.  COMMON AREAS; SERVICES

       

      SECTION
6.1.                                UTILITIES AND SERVICES.  Tenant shall be
responsible for and shall pay promptly, directly to the appropriate supplier,
all charges for water, gas, electricity, sewer, heat, light, power, telephone,
telecommunications service, refuse pickup, janitorial service, interior
landscape maintenance and all other utilities, materials and services furnished
directly to Tenant or the Premises or used by Tenant in, on or about the
Premises during the Term, together with any taxes thereon.  If any
utilities or services are not separately metered or assessed to Tenant, Landlord
shall make a reasonable determination of Tenant's proportionate share of the
cost of such utilities and services, and Tenant shall pay such amount to
Landlord, as an item of additional rent, within ten (10) days after receipt of
Landlord's statement or invoice therefor.  Alternatively, Landlord may
elect to include such cost in the definition of Project Costs in which event
Tenant shall pay Tenant's proportionate share of such costs in the manner set
forth in Section 4.2.  Tenant shall also pay to Landlord as an
item of additional rent, within ten (10) days after receipt of Landlord’s
statement or invoice therefor, a reasonable charge (which shall be in addition
to the electricity charge paid to the utility provider) for Tenant’s “after
hours” usage of each HVAC unit servicing the Premises.  If the HVAC
unit(s) servicing the Premises also serve other leased premises in the Building,
“after hours” shall mean usage of said unit(s) before or after the hours of 6:00
A.M. to 6:00 P.M. on Mondays through Fridays, and for more than four (4) hours
at any time during any weekend period (that is, from midnight on Friday through
midnight on Sunday), subject to reasonable adjustment of said hours by
Landlord.  If the HVAC unit(s) serve only the Premises, “after hours”
shall mean more than two hundred eighty-three (283) hours of usage during any
month during the Term.  “After hours” usage shall be determined based
upon the operation of the applicable HVAC unit during each of the foregoing
periods on a “non-cumulative” basis (that is, without regard to Tenant’s usage
or nonusage of other unit(s) serving the Premises, or of the applicable unit
during other periods of the Term).  Landlord shall not be liable for
damages or otherwise for any failure or interruption of any utility or other
service furnished to the Premises, and no such failure or interruption shall be
deemed an eviction or entitle Tenant to terminate this Lease or withhold or
abate any rent due hereunder.  Landlord shall at all reasonable times
have free access to the Building and, upon at least 24 hours prior written or
oral notice (except in emergencies when no notice shall be required), to the
Premises to install, maintain, repair, replace or remove all electrical and
mechanical installations of Landlord.  Tenant acknowledges that the
costs incurred by Landlord related to providing above-standard utilities to
Tenant, including, without limitation, telephone lines, may be charged to
Tenant.

       

      SECTION
6.2.                                OPERATION AND MAINTENANCE OF COMMON
AREAS.  During the Term,
Landlord shall operate all Common Areas within the Building and the
Project.  The term "Common Areas" shall mean all
areas within the exterior boundaries of the Building and other buildings in the
Project which are not held for exclusive use by persons entitled to occupy
space, and all other appurtenant areas and improvements within the Project
provided by Landlord for the common use of Landlord and tenants and their
respective employees and invitees, including without limitation parking areas
and structures, driveways, sidewalks, landscaped and planted areas, hallways and
interior stairwells not located within the premises of any tenant, common
electrical rooms and roof access entries, common entrances and lobbies,
elevators, and restrooms not located within the premises of any
tenant.

       

      SECTION
6.3.                                USE OF COMMON AREAS.  The occupancy by
Tenant of the Premises shall include the use of the Common Areas in common with
Landlord and with all others for whose convenience and use the Common Areas may
be provided by Landlord, subject, however, to compliance with all rules and
regulations as are prescribed from time to time by Landlord.  Landlord
shall operate and maintain the Common Areas in the manner Landlord may determine
to be appropriate.  All costs incurred by Landlord for the maintenance
and operation of the Common Areas shall be included in Project Costs except to
the extent any particular cost incurred is related to or associated with a
specific tenant and can be charged to such tenant of the
Project.  Landlord shall at all times during the Term have exclusive
control of the Common Areas, and may restrain or permit any use or occupancy,
except as authorized by Landlord's rules and regulations.  Tenant
shall keep the Common Areas clear of any obstruction or unauthorized use related
to Tenant's operations or use of Premises, including without limitation,
planters and furniture.  Nothing in this Lease shall be deemed to
impose liability upon Landlord for any damage to or loss of the property of, or
for any injury to, Tenant, its invitees or employees.  Landlord may
temporarily close any portion of the Common Areas for repairs, remodeling and/or
alterations, to prevent a public dedication or the accrual of prescriptive
rights, or for any other reason deemed sufficient by Landlord, without liability
to Landlord.

       

      

       

      SECTION
6.4.                                PARKING.  Tenant shall be
entitled to the number of vehicle parking spaces set forth in Item 14 of
the Basic Lease Provisions on those portions of the Common Areas designated by
Landlord for parking.  Such spaces shall be unreserved and unassigned,
except that Landlord shall designate and mark three (3) of such spaces near the
front-entry to the Premises as “visitor” for Tenant.  Tenant shall not
use more parking spaces than such number.  All parking spaces shall be
used only for parking of vehicles no larger than full size passenger
automobiles, sports utility vehicles or pickup trucks.  Tenant shall
not permit or allow any vehicles that belong to or are controlled by Tenant or
Tenant's employees, suppliers, shippers, customers or invitees to be loaded,
unloaded or parked in areas other than those designated by Landlord for such
activities.  If Tenant permits or allows any of the prohibited
activities described above, then Landlord shall have the right, without notice,
in addition to such other rights and remedies that Landlord may have, to remove
or tow away the vehicle involved and charge the costs to
Tenant.  Parking within the Common Areas shall be limited to striped
parking stalls, and no parking shall be permitted in any driveways, access ways
or in any area which would prohibit or impede the free flow of traffic within
the Common Areas.  There shall be no parking of any vehicles for
longer than a forty-eight (48) hour period unless otherwise authorized by
Landlord, and vehicles which have been abandoned or parked in violation of the
terms hereof may be towed away at the owner's expense.  Nothing
contained in this Lease shall be deemed to create liability upon Landlord for
any damage to motor vehicles of visitors or employees, for any loss of property
from within those motor vehicles, or for any injury to Tenant, its visitors or
employees, unless ultimately determined to be caused by the sole active
negligence or willful misconduct of Landlord.  Landlord shall have the
right to establish, and from time to time amend, and to enforce against all
users all reasonable rules and regulations (including the designation of areas
for employee parking) that Landlord may deem necessary and advisable for the
proper and efficient operation and maintenance of parking within the Common
Areas.  Landlord shall have the right to construct, maintain and
operate lighting facilities within the parking areas; to change the area, level,
location and arrangement of the parking areas and improvements therein; to
restrict parking by tenants, their officers, agents and employees to employee
parking areas; to enforce parking charges (by operation of meters or otherwise);
and to do and perform such other acts in and to the parking areas and
improvements therein as, in the use of good business judgment, Landlord shall
determine to be advisable.  Any person using the parking area shall
observe all directional signs and arrows and any posted speed
limits.  In no event shall Tenant interfere with the use and enjoyment
of the parking area by other tenants of the Project or their employees or
invitees.  Parking areas shall be used only for parking
vehicles.  Washing, waxing, cleaning or servicing of vehicles, or the
storage of vehicles for longer than 48-hours, is prohibited unless otherwise
authorized by Landlord.  Tenant shall be liable for any damage to the
parking areas caused by Tenant or Tenant's employees, suppliers, shippers,
customers or invitees, including without limitation damage from excess oil
leakage.  Tenant shall have no right to install any fixtures,
equipment or personal property in the parking areas.

       

      SECTION
6.5.                                CHANGES AND ADDITIONS BY LANDLORD.  Landlord reserves
the right to make alterations or additions to the Building or the Project, or to
the attendant fixtures, equipment and Common Areas.  Landlord may at
any time relocate or remove any of the various buildings, parking areas, and
other Common Areas, and may add buildings and areas to the Project from time to
time.  No change shall entitle Tenant to any abatement of rent or
other claim against Landlord, provided that the change does not deprive Tenant
of reasonable access to or use of the Premises.

       

      ARTICLE
VII.  MAINTAINING THE PREMISES

       

      SECTION
7.1.                                TENANT'S MAINTENANCE AND REPAIR.  Tenant at its
sole expense shall maintain and make all repairs and replacements necessary to
keep the Premises in the condition as existed on the Commencement Date (or on
any later date that the improvements may have been installed), excepting
ordinary wear and tear, including without limitation all interior glass, doors,
door closures, hardware, fixtures, electrical, plumbing, fire extinguisher
equipment and other equipment installed in the Premises and all Alterations
constructed by Tenant pursuant to Section 7.3 below.  Any damage or
deterioration of the Premises shall not be deemed ordinary wear and tear if the
same could have been prevented by good maintenance practices by
Tenant.  As part of its maintenance obligations hereunder, Tenant
shall, at Landlord's request, provide Landlord with copies of all maintenance
schedules, reports and notices prepared by, for or on behalf of
Tenant.  All repairs and replacements shall be at least equal in
quality to the original work, shall be made only by a licensed contractor
approved in writing in advance by Landlord and shall be made only at the time or
times approved by Landlord.  Any contractor utilized by Tenant shall
be subject to Landlord's standard requirements for contractors, as modified from
time to time.  Landlord may impose reasonable restrictions and
requirements with respect to repairs, as provided in Section 7.3, and the
provisions of Section 7.4 shall apply to all repairs.  Alternatively,
Landlord may elect to perform any repair and maintenance of the electrical and
mechanical systems and any air conditioning, ventilating or heating equipment
serving the Premises and include the cost thereof as part of Tenant's Share of
Operating Expenses.  If Tenant fails to properly maintain and/or
repair the Premises as herein provided following Landlord's notice and the
expiration of the applicable cure period (or earlier if Landlord determines that
such work must be performed prior to such time in order to avoid damage to the
Premises or Building or other detriment), then Landlord may elect, but shall
have no obligation, to perform any repair or maintenance required hereunder on
behalf of Tenant and at Tenant's expense, and Tenant shall reimburse Landlord
upon demand for all costs incurred upon submission of an
invoice.

      
        
          
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      SECTION
7.2.                                LANDLORD'S MAINTENANCE AND REPAIR.  Subject to
Section 7.1 and Article XI, Landlord shall provide service, maintenance and
repair with respect to any air conditioning, ventilating or heating equipment
which serves the Premises (exclusive, however, of supplemental HVAC equipment
serving only the Premises), and shall maintain in good repair the roof,
foundations, footings, the exterior surfaces of the exterior walls of the
Building (including exterior glass), and the structural, electrical and
mechanical systems, except that Tenant at its expense shall make all repairs
which Landlord deems reasonably necessary as a result of the act or negligence
of Tenant, its agents, employees, invitees, subtenants or
contractors.  Landlord shall have the right to employ or designate any
reputable person or firm, including any employee or agent of Landlord or any of
Landlord's affiliates or divisions, to perform any service, repair or
maintenance function.  Landlord need not make any other improvements
or repairs except as specifically required under this Lease, and nothing
contained in this Section shall limit Landlord's right to reimbursement from
Tenant for maintenance, repair costs and replacement costs as provided elsewhere
in this Lease.  Tenant understands that it shall not make repairs at
Landlord's expense or by rental offset.  Unless Landlord has actual
knowledge of the need for such repairs (including, without limitation, by way of
notice from another tenant of the Building of the need for such repairs, or by
way of report(s) from Landlord’s own employees, agents or contractors regarding
the need for such repairs), Landlord shall not be required to make any repairs
to the roof, foundations, footings, the exterior surfaces of the exterior walls
of the Building (excluding exterior glass), or structural, electrical or
mechanical systems, and Landlord shall have a reasonable period of time to
commence and complete said repair, if warranted.  All costs of any
maintenance, repairs and replacement on the part of Landlord provided hereunder
shall be considered part of Project Costs.

       

      SECTION
7.3.                                ALTERATIONS.  Except as
otherwise provided in this Section, Tenant shall make no alterations, additions,
fixtures or improvements ("Alterations") to the Premises or the
Building without the prior written consent of Landlord, which consent may be
granted or withheld in Landlord's sole and absolute discretion.  In
the event that any requested Alteration would result in a change from Landlord's
building standard materials and specifications for the Project ("Standard Improvements"),
Landlord may withhold consent to such Alteration in its sole and absolute
discretion.  In the event Landlord so consents to a change from the
Standard Improvements (such change being referred to as a "Non-Standard Improvement"),
Tenant shall be responsible for the cost of replacing such Non-Standard Improvement
with the applicable Standard Improvement ("Replacements") which
Replacements shall be completed prior to the Expiration Date or earlier
termination of this Lease.  Landlord shall not unreasonably withhold
its consent to any Alterations which cost less than One Dollar ($1.00) per
square foot of the improved portions of the Premises (excluding warehouse square
footage) and do not (i) affect the exterior of the Building or outside
areas (or be visible from adjoining sites), or (ii) affect or penetrate any
of the structural portions of the Building, including but not limited to the
roof, or (iii) require any change to the basic floor plan of the Premises
(including, without limitation, the adding of any additional “office” square
footage) or any change to any structural or mechanical systems of the Premises,
or (iv) fail to comply with any applicable governmental requirements or require
any governmental permit as a prerequisite to the construction thereof, or (v)
result in the Premises requiring building services beyond the level normally
provided to other tenants, or (vi) interfere in any manner with the proper
functioning of, or Landlord's access to, any mechanical, electrical, plumbing or
HVAC systems, facilities or equipment located in or serving the Building, or
(vii) diminish the value of the Premises including, without limitation,
using lesser quality materials than those existing in the Premises, or (viii)
alter or replace Standard Improvements.  Landlord may impose any
condition to its consent, including but not limited to a requirement that the
installation and/or removal of all Alterations and Replacements be covered by a
lien and completion bond satisfactory to Landlord in its sole and absolute
discretion and requirements as to the manner and time of performance of such
work.  Landlord shall in all events, whether or not Landlord's consent
is required, have the right to approve the contractor performing the
installation and removal of Alterations and Replacements and Tenant shall not
permit any contractor not approved by Landlord to perform any work on the
Premises or on the Building.  Tenant shall obtain all required permits
for the installation and removal of Alterations and Replacements and shall
perform the installation and removal of Alterations and Replacements in
compliance with all applicable laws, regulations and ordinances, including
without limitation the Americans with Disabilities Act, all covenants,
conditions and restrictions affecting the Project, and the Rules and Regulations
as described in Article XVII.  Tenant understands and agrees that
Landlord shall be entitled to a supervision fee in the amount of five percent
(5%) of the cost of such alterations either requiring a permit from the City of
Milpitas or affecting any mechanical, electrical, plumbing or HVAC systems,
facilities or equipment located in or servicing the Building.  Under
no circumstances shall Tenant make any Alterations or Replacements which
incorporate any Hazardous Materials, including without limitation
asbestos-containing construction materials into the Premises, the Building or
the Common Area.  If any governmental entity requires, as a condition
to any proposed Alterations by Tenant, that improvements be made to the Common
Areas, and if Landlord consents to such improvements to the Common Areas (which
consent may be withheld in the sole and absolute discretion of Landlord), then
Tenant shall, at Tenant's sole expense, make such required improvements to the
Common Areas in such manner, utilizing such materials, and with such
contractors, architects and engineers as Landlord may require in its sole and
absolute discretion.  Any request for Landlord's consent to any
proposed Alterations shall be made in writing and shall contain architectural
plans describing the work in detail reasonably satisfactory to
Landlord.  Landlord may elect to cause its architect to review
Tenant’s architectural plans, and the reasonable cost of that review shall be
reimbursed by Tenant.  Should the work proposed by Tenant and
consented to by Landlord modify the basic floor plan of the Premises, then
Tenant shall, at its expense, furnish Landlord with as-built drawings and CAD
disks compatible with Landlord’s systems and standards.  Unless
Landlord otherwise agrees in writing, all Alterations made or affixed to the
Premises, the Building or to the Common Area (excluding moveable trade fixtures
and furniture), including without limitation all Tenant Improvements constructed
pursuant to the Work Letter (except as otherwise provided in the Work Letter),
shall

      
        
          
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      become
the property of Landlord and shall be surrendered with the Premises at the end
of the Term; except that Landlord may, as provided in the next succeeding
paragraph of this Section 7.3, require Tenant to remove by the Expiration Date
or sooner termination date of this Lease, and to repair any damage to the
Premises, the Building or the Common Area arising from that removal and restore
the Premises to their condition prior to making such
Alterations.  Notwithstanding the foregoing, Landlord acknowledges
that certain tenant improvements and alterations have been constructed at the
Premises prior to the Commencement Date (the “Pre-Existing Alterations”),
and Landlord agrees that Tenant shall have no obligation (i) to remove the
Pre-Existing Alterations, (ii) to repair any damage arising from the removal of
the Pre-Existing Alterations by Landlord, or (iii) to restore the Premises to
their condition prior to the installation of the Pre-Existing
Alterations.

       

      As of the
Expiration Date or earlier termination date of this Lease, Landlord shall have
the right to require Tenant to remove any Alterations made by Tenant to the
Premises and to replace same with the applicable Replacements, whether or not
Landlord’s consent was required.  Notwithstanding the foregoing, if at
the time of requesting Landlord’s consent to any such Alterations, Tenant shall
request in writing whether or not Landlord shall require such Alterations to be
removed and replaced as of the Expiration Date or earlier termination date of
this Lease, then Landlord’s right to require Tenant to remove and replace such
Alterations shall be exercised, if at all, at the time of Landlord’s consent
thereto.

       

      SECTION
7.4.                                MECHANIC'S LIENS.  Tenant shall keep
the Premises free from any liens arising out of any work performed, materials
furnished, or obligations incurred by or for Tenant.  Upon request by
Landlord, Tenant shall promptly (but in no event later than ten (10) business
days following such request) cause any such lien to be released by posting a
bond in accordance with California Civil Code Section 3143 or any successor
statute.  In the event that Tenant shall not, within thirty (30) days
following the imposition of any lien, cause the lien to be released of record by
payment or posting of a proper bond, Landlord shall have, in addition to all
other available remedies, the right to cause the lien to be released by any
means it deems proper, including payment of or defense against the claim giving
rise to the lien.  All expenses so incurred by Landlord, including
Landlord's attorneys' fees, and any consequential or other damages incurred by
Landlord arising out of such lien, shall be reimbursed by Tenant upon demand,
together with interest from the date of payment by Landlord at the maximum rate
permitted by law until paid.  Tenant shall give Landlord no less than
twenty (20) days' prior notice in writing before commencing construction of any
kind on the Premises or Common Area and shall again notify Landlord that
construction has commenced, such notice to be given on the actual date on which
construction commences, so that Landlord may post and maintain notices of
nonresponsibility on the Premises or Common Area, as applicable, which notices
Landlord shall have the right to post and which Tenant agrees it shall not
disturb.  Tenant shall also provide Landlord notice in writing within
ten (10) days following the date on which such work is substantially
completed.  The provisions of this Section shall expressly survive the
expiration or sooner termination of this Lease.

       

      SECTION
7.5.                                ENTRY AND INSPECTION.  Landlord shall at
all reasonable times, upon at least 24 hours prior written or oral notice
(except in emergencies, when no notice shall be required) have the right to
enter the Premises to inspect them, to supply services in accordance with this
Lease, to have access to install, repair, maintain, replace or remove all
electrical and mechanical installations of Landlord and to protect the interests
of Landlord in the Premises, and to submit the Premises to prospective or actual
purchasers or encumbrance holders (or, during the last one hundred and eighty
(180) days of the Term or when an uncured Tenant Event of Default exists, to
prospective tenants), all without being deemed to have caused an eviction of
Tenant and without abatement of rent except as provided elsewhere in this
Lease.  Landlord shall have the right, if desired, to retain a key
which unlocks all of the doors in the Premises, excluding Tenant's vaults and
safes, and Landlord shall have the right to use any and all means which Landlord
may deem proper to open the doors in an emergency in order to obtain entry to
the Premises, and any entry to the Premises obtained by Landlord shall not under
any circumstances be deemed to be a forcible or unlawful entry into, or a
detainer of, the Premises, or any eviction of Tenant from the
Premises.

       

      ARTICLE
VIII.  TAXES AND ASSESSMENTS ON TENANT'S PROPERTY

       

      Tenant
shall be liable for and shall pay, at least ten (10) days before delinquency,
all taxes and assessments levied against all personal property of Tenant located
in the Premises, and, if required by Landlord, against all Non Standard
Improvements to the Premises (as defined in Section 7.3) made by Landlord or
Tenant, and against any Alterations (as defined in Section 7.3) made to the
Premises or the Building by or on behalf of Tenant.  If requested by
Landlord, Tenant shall cause its personal property, Non-Standard
Improvements and
Alterations to be assessed and billed separately from the real property of which
the Premises form a part.  If any taxes required to be paid by Tenant
on Tenant's personal property, Non-Standard Improvements and/or Alterations are
levied against Landlord or Landlord's property and if Landlord pays the same, or
if the assessed value of Landlord's property is increased by the inclusion of a
value placed upon the personal property, Non-Standard Improvements and/or
Alterations and if Landlord pays the taxes based upon the increased assessment,
Landlord shall have the right to require that Tenant pay to Landlord the taxes
so levied against Landlord or the proportion of the taxes resulting from the
increase in the assessment.  In calculating what portion of any tax
bill which is assessed against Landlord separately, or Landlord and Tenant
jointly, is attributable to Tenant's Non-Standard Improvements, Alterations and
personal property, Landlord's reasonable determination shall be
conclusive.

      
        
          
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      ARTICLE
IX.  ASSIGNMENT AND SUBLETTING

       

      SECTION
9.1.                                RIGHTS
OF PARTIES.

       

      (a)           Notwithstanding
any provision of this Lease to the contrary, and except as to transfers
expressly permitted without Landlord's consent pursuant to Section 9.4, Tenant
will not, either voluntarily or by operation of law, assign, sublet, encumber,
or otherwise transfer all or any part of Tenant's interest in this Lease or the
Premises, or permit the Premises to be occupied by anyone other than Tenant,
without Landlord's prior written consent, which consent shall not unreasonably
be withheld in accordance with the provisions of Section 9.1(b).  No
assignment (whether voluntary, involuntary or by operation of law) and no
subletting shall be valid or effective without Landlord's prior written consent
and, at Landlord's election, any such assignment or subletting shall be void and
of no force and effect and any such attempted assignment or subletting shall
constitute an Event of Default of this Lease.  Landlord shall not be
deemed to have given its consent to any assignment or subletting by any course
of action, including its acceptance of any name for listing in the Building
directory, other than written consent.  To the extent not prohibited
by provisions of the Bankruptcy Code, 11 U.S.C. Section 101 et seq., (the "Bankruptcy Code"), including
Section 365(f)(1), Tenant on behalf of itself and its creditors, administrators
and assigns waives the applicability of Section 365(e) of the Bankruptcy Code
unless the proposed assignee of the Trustee for the estate of the bankrupt meets
Landlord's standard for consent as set forth in Section 9.1(b) of this
Lease.  If this Lease is assigned to any person or entity pursuant to
the provisions of the Bankruptcy Code, any and all monies or other
considerations to be delivered in connection with the assignment shall be
delivered to Landlord, shall be and remain the exclusive property of Landlord
and shall not constitute property of Tenant or of the estate of Tenant within
the meaning of the Bankruptcy Code.  Any person or entity to which
this Lease is assigned pursuant to the provisions of the Bankruptcy Code shall
be deemed to have assumed all of the obligations arising under this Lease on and
after the date of the assignment,  and shall upon demand execute and
deliver to Landlord an instrument confirming that assumption.

       

      (b)           If
Tenant desires to transfer an interest in this Lease or the Premises, it shall
first notify Landlord of its desire and shall submit in writing to
Landlord:  (i) the name and address of the proposed transferee; (ii)
the nature of any proposed transferee's business to be carried on in the
Premises; (iii) the terms and provisions of any proposed sublease, assignment or
other transfer, including a copy of the proposed assignment, sublease or
transfer form; (iv) evidence that the proposed assignee, subtenant or
transferee will comply with the requirements of Exhibit D
hereto; (v) a completed Environmental Questionnaire from the proposed
assignee, subtenant or transferee; (vi) any other information requested by
Landlord and reasonably related to the transfer and (vii) the fee described in
Section 9.1(e).  Except as provided in Section 9.1 (c), Landlord shall
not unreasonably withhold its consent, provided that the parties agree that it
shall be reasonable for Landlord to withhold its consent if:  (1) the
use of the Premises will not be consistent with the provisions of this Lease or
with Landlord's commitment to other tenants of the Building and Project; (2) the
proposed assignee or subtenant has been required by any prior landlord, lender
or governmental authority to take remedial action in connection with Hazardous
Materials contaminating a property arising out of the proposed assignee's or
subtenant's actions or use of the property in question or is subject to any
enforcement order issued by any governmental authority in connection with the
use, disposal or storage of a Hazardous Material; (3) insurance requirements of
the proposed assignee or subtenant may not be brought into conformity with
Landlord's then current leasing practice; (4) a proposed subtenant or assignee
has not demonstrated to the reasonable satisfaction of Landlord that it is
financially responsible or has failed to submit to Landlord all reasonable
information as requested by Landlord concerning the proposed subtenant or
assignee, including, but not limited to, a certified balance sheet of the
proposed subtenant or assignee as of a date within ninety (90) days of the
request for Landlord's consent, statements of income or profit and loss of the
proposed subtenant or assignee for the two-year period preceding the request for
Landlord's consent, and/or a certification signed by the proposed subtenant or
assignee that it has not been evicted or been in arrears in rent at any other
leased premises for the 3-year period preceding the request for Landlord's
consent; (5) any proposed subtenant or assignee has not demonstrated to
Landlord's reasonable satisfaction a record of successful experience in
business; (6) the proposed assignee or subtenant is an existing tenant of the
Building or Project or a prospect with whom Landlord is negotiating to become a
tenant at the Building or Project; or (7) the proposed transfer will impose
additional burdens or adverse tax effects on Landlord.  If Tenant has
any exterior sign rights under this Lease, such rights are personal to Tenant
and may not be assigned or transferred to any assignee of this Lease or
subtenant of the Premises without Landlord's prior written consent, which may be
withheld in Landlord's sole and absolute discretion.

       

      If
Landlord consents to the proposed transfer, Tenant may, within ninety (90) days
after the date of the consent, execute the agreement for assignment, sublease or
other transfer upon the terms described in the information furnished to
Landlord; provided that any material change in the terms shall be subject to
Landlord's consent as set forth in this Section 9.1.  Landlord shall
approve or disapprove any requested transfer within fifteen (15) business days
following receipt of Tenant's written request, the information set forth above,
and the fee set forth below.

       

      (c)           Notwithstanding
the provisions of Section 9.1(b) above, in lieu of consenting to a proposed
assignment or subletting, Landlord may elect, within the fifteen (15) business
day period permitted for Landlord to approve or disapprove a requested transfer,
to (i) sublease the Premises (or the portion proposed to be subleased), or take
an assignment of Tenant's interest in this Lease, upon substantially the same
terms as offered to the proposed subtenant or assignee (excluding terms relating
to the purchase of personal property, the use of Tenant's name or
the

      
        
          
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      continuation
of Tenant's business), or (ii) terminate this Lease as to the portion of the
Premises proposed to be subleased or assigned with a proportionate abatement in
the rent payable under this Lease, effective as of the effective date of the
proposed assignment or subletting, thirty (30) days' following written notice by
Landlord of its election to so sublease or terminate.  Landlord may
thereafter, at its option, assign, sublet or re-let any space so sublet,
obtained by assignment or obtained by termination to any third party, including
without limitation the proposed transferee of Tenant.

       

      (d)           In
the event that Landlord approves the requested assignment or subletting, Tenant
agrees that fifty percent (50%) of any amounts paid by the assignee or
subtenant, however described, in excess of (i) the Basic Rent payable by
Tenant hereunder, or in the case of a sublease of a portion of the Premises, in
excess of the Basic Rent reasonably allocable to such portion as determined by
Landlord, plus (ii) Tenant's direct out-of-pocket costs which Tenant
certifies to Landlord have been paid to provide occupancy related services to
such assignee or subtenant of a nature commonly provided by landlords of similar
space, shall be the property of Landlord and such amounts shall be payable
directly to Landlord by the assignee or subtenant or, at Landlord's option, by
Tenant within ten (10) days of Tenant's receipt thereof.  At
Landlord's request, a written agreement shall be entered into by and among
Tenant, Landlord and the proposed assignee or subtenant confirming the
requirements of this Section 9.1(d).

       

      (e)           Tenant
shall pay to Landlord a fee equal to the greater of (i) Landlord's actual costs
related to such assignment, subletting or other transfer or (ii) Five Hundred
Dollars ($500.00), to process any request by Tenant for an assignment,
subletting or other transfer under this Lease.  Tenant shall pay
Landlord the sum of Five Hundred Dollars ($500.00) concurrently with Tenant's
request for consent to any assignment, subletting or other transfer, and
Landlord shall have no obligation to consider such request unless accompanied by
such payment.  Tenant shall pay Landlord upon demand any costs in
excess of such payment to the extent Landlord's actual costs related to such
request exceeds $500.00.  Such fee is hereby acknowledged as a
reasonable amount to reimburse Landlord for its costs of review and evaluation
of a proposed transfer.

       

      SECTION
9.2.                                EFFECT OF TRANSFER.  No subletting or
assignment, even with the consent of Landlord, shall relieve Tenant of its
obligation to pay rent and to perform all its other obligations under this
Lease.  Except with respect to an assignee or subtenant who has
received an assignment of Tenant’s interest under the Lease or sublet the
Premises through Landlord, as subtenant or assignee of Tenant’s interest in the
Lease pursuant to Section 9.1( c) above, Tenant shall
indemnify and hold Landlord harmless, as provided in Section 10.3, for any act
or omission by an assignee or subtenant.  Each assignee, other than
Landlord, shall assume all obligations of Tenant under this Lease and shall be
liable jointly and severally with Tenant for the payment of all rent, and for
the due performance of all of Tenant's obligations, under this
Lease.  No assignment or subletting shall be effective or binding on
Landlord unless documentation in form and substance satisfactory to Landlord in
its reasonable discretion evidencing the transfer, and in the case of an
assignment, the assignee's assumption of the obligations of Tenant under this
Lease, is delivered to Landlord and both the assignee/subtenant and Tenant
deliver to Landlord an executed consent to transfer instrument prepared by
Landlord and consistent with the requirements of this Article.  The
acceptance by Landlord of any payment due under this Lease from any other person
shall not be deemed to be a waiver by Landlord of any provision of this Lease or
to be a consent to any transfer.  Consent by Landlord to one or more
transfers shall not operate as a waiver or estoppel to the future enforcement by
Landlord of its rights under this Lease or as a consent to any subsequent
transfer.

       

      SECTION
9.3.                                SUBLEASE REQUIREMENTS.  The following
terms and conditions shall apply to any subletting by Tenant of all or any part
of the Premises and shall be deemed included in each sublease:

       

      (a)           Each
and every provision contained in this Lease (other than with respect to the
payment of rent hereunder) is incorporated by reference into and made a part of
such sublease, with "Landlord" hereunder meaning
the sublandlord therein and "Tenant" hereunder meaning the
subtenant therein.

       

      (b)           Tenant
hereby irrevocably assigns to Landlord all of Tenant's interest in all rentals
and income arising from any sublease of the Premises, and Landlord may collect
such rent and income and apply same toward Tenant's obligations under this
Lease; provided, however, that until there is an Event of Default by Tenant,
Tenant shall have the right to receive and collect the sublease
rentals.  Landlord shall not, by reason of this assignment or the
collection of sublease rentals, be deemed liable to the subtenant for the
performance of any of Tenant's obligations under the sublease.  Tenant
hereby irrevocably authorizes and directs any subtenant, upon receipt of a
written notice from Landlord stating that an uncured Event of Default exists in
the performance of Tenant's obligations under this Lease, to pay to Landlord all
sums then and thereafter due under the sublease.  Tenant agrees that
the subtenant may rely on that notice without any duty of further inquiry and
notwithstanding any notice or claim by Tenant to the contrary.  Tenant
shall have no right or claim against the subtenant or Landlord for any rentals
so paid to Landlord.

       

      (c)           In
the event of the termination of this Lease for any reason, including without
limitation as the result of an Event of Default by Tenant or by the mutual
agreement of Landlord and Tenant, Landlord may, at its sole option, take over
Tenant's entire interest in any sublease and, upon notice from Landlord, the
subtenant shall attorn to Landlord.  In no event, however, shall
Landlord be liable for any previous act or omission by Tenant under the sublease
or for the return of any advance rental payments or deposits under the sublease
that have not been actually delivered to Landlord, nor shall Landlord be bound
by any sublease modification executed without Landlord's consent or for any
advance rental payment by the subtenant in excess of one month's
rent.  The general provisions of this Lease, including without
limitation those pertaining to insurance and indemnification, shall
be

      
        
          
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      deemed
incorporated by reference into the sublease despite the termination of this
Lease.  In the event Landlord does not elect to take over Tenant's
interest in a sublease in the event of any such termination of this Lease, such
sublease shall terminate concurrently with the termination of this Lease and
such subtenant shall have no further rights under such sublease and Landlord
shall have no obligations to such subtenant.

       

      SECTION
9.4.                                CERTAIN TRANSFERS.  The following
shall be deemed to constitute an assignment of this Lease; (a) the sale of
all or substantially all of Tenant's assets (other than bulk sales in the
ordinary course of business), (b) if Tenant is a corporation, an
unincorporated association, a limited liability company or a partnership, the
transfer, assignment or hypothecation of any stock or interest in such
corporation, association, limited liability company or partnership in the
aggregate of fifty percent (50%) (except for publicly traded shares of stock),
or (c) any other direct or indirect change of control of Tenant, including,
without limitation, change of control of Tenant's parent company or a merger by
Tenant or its parent company.  Notwithstanding the foregoing,
Landlord's consent shall not be required for the assignment of this Lease as a
result of a merger by Tenant with or into another entity or a reorganization of
Tenant, so long as (i) the net worth of the successor or reorganized entity
after such merger is at least equal to the greater of the net worth of Tenant as
of the execution of this Lease by Landlord or the net worth of Tenant
immediately prior to the date of such merger or reorganization, evidence of
which, satisfactory to Landlord, shall be presented to Landlord prior to such
merger or reorganization, (ii) Tenant shall provide to Landlord, prior to
such merger or reorganization, written notice of such merger or reorganization
and such assignment documentation and other information as Landlord may require
in connection therewith, and (iii) all of the other terms and requirements
Section 9.2 and 9.3 shall apply with respect to such
assignment.

       

      ARTICLE
X.  INSURANCE AND INDEMNITY

       

      SECTION
10.1.                                TENANT'S INSURANCE.  Tenant, at its
sole cost and expense, shall provide and maintain in effect the insurance
described in Exhibit
D.  Evidence of that insurance must be delivered to Landlord
prior to the Commencement Date.

       

      SECTION
10.2.                                LANDLORD'S INSURANCE.  Landlord may, at
its election, provide any or all of the following types of insurance, with or
without deductible and in amounts and coverages as may be determined by Landlord
in its sole and absolute discretion:  property insurance, subject to
standard exclusions, covering the Building and/or Project, and such other risks
as Landlord or its mortgagees may from time to time deem appropriate, including
coverage for the Tenant Improvements constructed by Landlord pursuant to the
Work Letter (if any) attached hereto, and commercial general liability
coverage.  Landlord shall not be required to carry insurance of any
kind on Tenant's Alterations or on Tenant's other property, including, without
limitation, Tenant’s trade fixtures, furnishings, equipment, signs and all other
items of personal property, and Landlord shall not be obligated to repair or
replace that property should damage occur.  All proceeds of insurance
maintained by Landlord upon the Building and/or Project shall be the property of
Landlord, whether or not Landlord is obligated to or elects to make any
repairs.  At Landlord's option, Landlord may self-insure all or any
portion of the risks for which Landlord elects to provide insurance
hereunder.

       

      SECTION
10.3.                                JOINT INDEMNITY.

       

      (a)           To
the fullest extent permitted by law, Tenant shall defend, indemnify, protect,
save and hold harmless Landlord, its agents, and affiliates of Landlord,
including, without limitation, any corporations or other entities controlling,
controlled by or under common control with Landlord, from and against any and
all claims, liabilities, costs or expenses arising either before or after the
Commencement Date from Tenant's use or occupancy of the Premises, the Building
or the Common Areas, including, without limitation, the use by Tenant, its
agents, employees, invitees or licensees of any recreational facilities within
the Common Areas, or from the conduct of its business, or from any activity,
work, or thing done, permitted or suffered by Tenant or its agents, employees,
invitees or licensees in or about the Premises, the Building or the Common
Areas, or from any Event of Default in the performance of any obligation on
Tenant's part to be performed under this Lease, or from any act or negligence of
Tenant or its agents, employees, visitors, patrons, guests, invitees or
licensees.  Landlord may, at its option, require Tenant to assume
Landlord's defense in any action covered by this Section 10.3(a) through counsel
reasonably satisfactory to Landlord.  The provisions of this Section
10.3(a) shall expressly survive the expiration or sooner termination of this
Lease.  Tenant's obligations under this Section shall not apply in the
event that the claim, liability, cost or expense is (i) caused by the active
negligence or willful misconduct of Landlord, or (ii) is covered by Landlord's
indemnity obligations set forth in Section 10.3(b) below.

       

      (b)           To
the fullest extent permitted by law, but subject to the express limitations on
liability contained in this Lease (including, without limitation, the provisions
of Sections 10.4, 10.5 and 14.8 of this Lease), Landlord shall defend,
indemnify, protect, save and hold harmless Tenant, its agents and any and all
affiliates of Tenant, including without limitation, any corporations, or other
entities controlling, controlled by or under common control with Tenant, from
and against any and all claims, liabilities, costs or expenses arising either
before or after the Commencement Date from the active negligence or willful
misconduct of Landlord, its employees or authorized agents in connection with
the operation, maintenance or repair of the Building or the
Project.  Tenant may, at its option, require Landlord to assume
Tenant's defense in actions covered by this Section 10.3(b) through counsel
reasonably satisfactory to Tenant.  The provisions of this Section
10.3(b) shall expressly survive the expiration or sooner termination of this
Lease.  Landlord's obligations under this Section 10.3(b) shall not
apply in the event that

      
        
          
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      the
claim, liability, cost or expense is (i) caused by the active negligence or
willful misconduct of Tenant, or (ii) is covered by Tenant's indemnity
obligations set forth in Section 10.3(a) above.

       

      SECTION
10.4.                                LANDLORD'S NONLIABILITY.  Landlord and
Master Lessor shall not be liable to Tenant, its employees, agents and invitees,
and Tenant hereby waives all claims against Landlord and Master Lessor and
knowingly assumes the risk of for loss of or damage to any property, or loss or
interruption of business or income, or any other loss, cost, damage, injury or
liability whatsoever (including without limitation any consequential damages and
lost profit or opportunity costs) resulting from, but not limited to, Acts of
God, acts of civil disobedience or insurrection, acts or omissions of third
parties and/or of other tenants within the Project or their agents, employees,
contractors, guests or invitees, fire, explosion, falling plaster, steam, gas,
electricity, water or rain which may leak or flow from or into any part of the
Premises or from the breakage, leakage, obstruction or other defects of the
pipes, sprinklers, wires, appliances, plumbing, air conditioning, electrical
works, roof, windows or other fixtures in the Building, whether the damage or
injury results from conditions arising in the Premises or in other portions of
the Building.  It is understood that any such condition may require
the temporary evacuation or closure of all or a portion of the
Building.  Landlord and Master Lessor shall have no liability
(including without limitation consequential damages and lost profit or
opportunity costs) and, except as provided in Sections 11.1 and 12.1 below,
there shall be no abatement of rent, by reason of any injury to or interference
with Tenant's business arising from the making of any repairs, alterations or
improvements to any portion of the Building, including repairs to the Premises,
nor shall any related activity by Landlord or Master Lessor constitute an actual
or constructive eviction; provided, however, that in making repairs, alterations
or improvements, Landlord shall interfere as little as reasonably practicable
with the conduct of Tenant's business in the Premises.  Should Tenant
elect to receive any service or products from a concessionaire, licensee or
third party tenant of Landlord, Landlord shall have no liability for any
services or products so provided or for any breach of contract by such third
party provider.  Neither Landlord, Master Lessor nor their respective
agents shall be liable for interference with light or other similar intangible
interests.  Tenant shall immediately notify Landlord in case of fire
or accident in the Premises, the Building or the Project and of defects in any
improvements or equipment.

       

      SECTION
10.5.                                WAIVER OF SUBROGATION.  Landlord and
Tenant each hereby waives all rights of recovery against the other and the
other's agents on account of loss and damage occasioned to the property of such
waiving party to the extent that the waiving party is entitled to proceeds for
such loss or damage under any property insurance policies carried or required to
be carried by the provisions of this Lease; provided however, that the foregoing
waiver shall not apply to the extent of Tenant's obligations to pay deductibles
under any such policies and this Lease.  By this waiver it is the
intent of the parties that neither Landlord nor Tenant shall be liable to any
insurance company (by way of subrogation or otherwise) insuring the other party
for any loss or damage insured against under any property insurance policies
contemplated by this Lease, even though such loss or damage might be occasioned
by the negligence of such party, its agents, employees, contractors, guests or
invitees.

       

      ARTICLE
XI.  DAMAGE OR DESTRUCTION

       

      SECTION
11.1.                                RESTORATION.

       

      (a)           If
the Premises or the Building or a part thereof are materially damaged by any
fire, flood, earthquake or other casualty, Landlord shall have the right to
terminate this Lease upon written notice to Tenant if:  (i) Landlord
reasonably determines that proceeds necessary to pay the full cost of repair is
not available from Landlord's insurance, including without limitation earthquake
insurance, plus such additional amounts Tenant elects, at its option, to
contribute, excluding however the deductible (for which Tenant shall be
responsible for Tenant's Share); (ii) Landlord reasonably determines that
the Premises cannot, with reasonable diligence, be fully repaired by Landlord
(or cannot be safely repaired because of the presence of hazardous factors,
including without limitation Hazardous Materials, earthquake faults, and other
similar dangers) within two hundred seventy (270) days after the date of the
damage; or (iii) the material damage occurs during the final twelve (12) months
of the Term.  Landlord shall notify Tenant in writing ("Landlord's Notice") within
sixty (60) days after the damage occurs as to (A) whether Landlord is
terminating this Lease as a result of such material damage and (B) if Landlord
is not terminating this Lease, the number of days within which Landlord has
estimated that the Premises, with reasonable diligence, are likely to be fully
repaired.  In the event Landlord elects to terminate this Lease, this
Lease shall terminate as of the date specified for termination by Landlord's
Notice (which termination date shall in no event be later than sixty (60) days
following the date of the damage, or, if no such date is specified, such
termination shall be the date of Landlord's Notice).

       

      (b)           If
Landlord has the right to terminate this Lease pursuant to Section 11.1(a) and
does not elect to so terminate this Lease, and provided that at the time of
Landlord's Notice no monetary Event of Default under this Lease exists, then
within ten (10) days following delivery of Landlord's Notice pursuant to Section
11.1(a), Tenant may elect to terminate this Lease by written notice to Landlord,
but only if (i) Landlord's Notice specifies that Landlord has determined that
the Premises cannot be repaired, with reasonable diligence, within two hundred
seventy (270) days after the date of damage or (ii) the casualty has occurred
within the final twelve (12) months of the Term and such material damage has a
materially adverse impact on Tenant's continued use of the Premises or the
operation of its business at the Premises.  If Tenant fails to provide
such termination notice within such ten (10) day

      
        
          
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      period,
Tenant shall be deemed to have waived any termination right under this Section
1l.1(b) or any other applicable law.

       

      (c)           In
the event that neither Landlord nor Tenant terminates this Lease pursuant to
this Section 11.1 as a result of material damage to the Building or Premises
resulting from a casualty, Landlord shall repair all material damage to the
Premises or the Building as soon as reasonably possible and this Lease shall
continue in effect for the remainder of the Term.  Subject to any
provision to the contrary in the Work Letter, such repair by Landlord shall
include repair of material damage to the Tenant Improvements constructed
pursuant to the Work Letter, so long as insurance proceeds from insurance
required to be carried by Tenant are made available to
Landlord.  Landlord shall have the right, but not the obligation, to
repair or replace any other leasehold improvements made by Tenant or any
Alterations (as defined in Section 7.3) constructed by
Tenant.  If Landlord elects to repair or replace such leasehold
improvements and/or Alterations, all insurance proceeds available for such
repair or replacement shall be made available to Landlord.  Landlord
shall have no liability to Tenant in the event that the Premises or the Building
has not been fully repaired within the time period specified by Landlord in
Landlord's Notice to Tenant as described in Section
11.1(a).  Notwithstanding the foregoing, the repair of damage to the
Premises to the extent such damage is not material shall be governed by Sections
7.1 and 7.2.

       

      (d)           Commencing
on the date of such material damage to the Building, and ending on the sooner of
the date the damage is repaired or the date this Lease is terminated, the rental
to be paid under this Lease shall be abated in the same proportion that the
Floor Area of the Premises that is rendered unusable by the damage from time to
time bears to the total Floor Area of the Premises, as determined by Landlord,
provided that Tenant is then carrying the business interruption insurance
required of Tenant pursuant to Exhibit
D.

       

      (e)           Landlord
shall not be required to repair or replace any improvements or fixtures that
Tenant is obligated to repair or replace pursuant to Section 7.1 or any other
provision of this Lease and Tenant shall continue to be obligated to so repair
or replace any such improvements or fixtures, notwithstanding any provisions to
the contrary in this Article XI.  In addition, but subject to the
provisions of Section 10.5, in the event the damage or destruction to the
Premises or Building are due in substantial part to the fault or neglect of
Tenant or its employees, subtenants, invitees or representatives, then (i) and
such damage or destruction is uninsured, the costs of any such repairs or
replacement to the Premises or Building shall be borne by Tenant, or (ii) such
damage or destruction is insured, then the costs of any deductible carried by
Landlord under the applicable insurance policies shall be borne by Tenant, and
in addition, Tenant shall not be entitled to terminate this Lease as a result,
notwithstanding the provisions of Section 11.1(b).

       

      (f)           Tenant
shall fully cooperate with Landlord in removing Tenant's personal property and
any debris from the Premises to facilitate all inspections of the Premises and
the making of any repairs.  Notwithstanding anything to the contrary
contained in this Lease, if Landlord in good faith believes there is a risk of
injury to persons or damage to property from entry into the Building or Premises
following any damage or destruction thereto, Landlord may restrict entry into
the Building or the Premises by Tenant, its employees, agents and contractors in
a non-discriminatory manner, without being deemed to have violated Tenant's
rights of quiet enjoyment to, or made an unlawful detainer of, or evicted Tenant
from, the Premises.  Upon request, Landlord shall consult with Tenant
to determine if there are safe methods of entry into the Building or the
Premises solely in order to allow Tenant to retrieve files, data in computers,
and necessary inventory, subject however to all indemnities and waivers of
liability from Tenant to Landlord contained in this Lease and any additional
indemnities and waivers of liability which Landlord may require.

       

      SECTION
11.2.                                LEASE GOVERNS.  Tenant agrees
that the provisions of this Lease, including without limitation Section 11.1,
shall govern any damage or destruction and shall accordingly supersede any
contrary statute or rule of law.

       

      ARTICLE
XII.  EMINENT DOMAIN

       

      SECTION
12.1.                                TOTAL OR PARTIAL TAKING.  If all or a
material portion of the Premises, or such part of the Building or Premises such
that Tenant’s access to the Premises is materially impaired, is taken by any
lawful authority by exercise of the right of eminent domain, or sold to prevent
a taking, either Tenant or Landlord may terminate this Lease effective as of the
date possession is required to be surrendered to the authority.  In
the event title to a portion of the Building or Project, whether or not
including a portion of the Premises, is taken or sold in lieu of taking, and if
Landlord elects to restore the Building in such a way as to alter the Premises
materially, either party may terminate this Lease, by written notice to the
other party, effective on the date of vesting of title.  In the event
neither party has elected to terminate this Lease as provided above, then
Landlord shall promptly, after receipt of a sufficient condemnation award,
proceed to restore the Premises to substantially their condition prior to the
taking, and a proportionate allowance shall be made to Tenant for the rent
corresponding to the time during which, and to the part of the Premises of
which, Tenant is deprived on account of the taking and
restoration.  In the event of a taking, Landlord shall be entitled to
the entire amount of the condemnation award without deduction for any estate or
interest of Tenant; provided that nothing in this Section shall be deemed to
give Landlord any interest in, or prevent Tenant from seeking any award against
the taking authority for, the taking of personal property and fixtures belonging
to Tenant or for relocation or business interruption expenses recoverable from
the taking authority.

      
        
          
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      SECTION
12.2.                                TEMPORARY TAKING.  No temporary
taking of the Premises shall terminate this Lease, and any award specifically
attributable to a temporary taking of the Premises shall belong entirely to
Tenant.  Tenant’s rent shall abate in proportion to the portion of the
Premises so taken.  A temporary taking shall be deemed to be a taking
of the use or occupancy of the Premises for a period of not to exceed thirty
(30) days.

       

      SECTION
12.3.                                TAKING OF PARKING AREA.  In the event
there shall be a taking of the parking area such that Landlord can no longer
provide sufficient parking to comply with this Lease, Landlord may substitute
reasonably equivalent parking in a location reasonably close to the Building;
provided that if Landlord fails to make that substitution within thirty (30)
days following the taking and if the taking materially impairs Tenant's use and
enjoyment of the Premises, Tenant may, at its option, terminate this Lease by
written notice to Landlord.  If this Lease is not so terminated by
Tenant, there shall be no abatement of rent and this Lease shall continue in
effect.

       

      ARTICLE
XIII.  SUBORDINATION; ESTOPPEL CERTIFICATE; FINANCIALS

       

      SECTION
13.1.                                SUBORDINATION.  This Lease shall
be subordinate to the Master Lease and to all renewals, modifications and
extensions thereof.  Further, at the option of Landlord or any lender
of Landlord's that obtains a security interest in the Building, this Lease shall
be either superior or subordinate to all ground or underlying leases, mortgages
and deeds of trust, if any, which may hereafter affect the Building, and to all
renewals, modifications, consolidations, replacements and extensions
thereof.  Notwithstanding the foregoing, so long as no Event of
Default exists under this Lease, Tenant's possession and quiet enjoyment of the
Premises shall not be disturbed and this Lease shall not terminate in the event
of termination of the Master Lessor or of any such ground or underlying lease,
or the foreclosure of any such mortgage or deed of trust, to which this Lease
has been subordinated pursuant to this Section.  Tenant shall execute
and deliver any subordination documents or agreements requested by Landlord,
Master Lessor or such lessor or lender which provide Tenant with the
non-disturbance protections set forth in this Section.  In the event
of a termination or foreclosure, Tenant shall become a tenant of and attorn to
the successor-in-interest to Landlord upon the same terms and conditions as are
contained in this Lease, and shall execute any instrument reasonably required by
Landlord's successor for that purpose.  Tenant shall also, upon
written request of Landlord, execute and deliver all instruments as may be
required from time to time to subordinate the rights of Tenant under this Lease
to any ground or underlying lease or to the lien of any mortgage or deed of
trust (provided that such instruments include the nondisturbance and attornment
provisions set forth above), or, if requested by Landlord, to subordinate, in
whole or in part, any ground or underlying lease or the lien of any mortgage or
deed of trust to this Lease.  Tenant agrees that any purchaser at a
foreclosure sale or lender taking title under a deed-in-lieu of foreclosure
shall not be responsible for any act or omission of a prior landlord, shall not
be subject to any offsets or defenses Tenant may have against a prior landlord,
and shall not be liable for the return of the security deposit to the extent it
is not actually received by such purchaser or bound by any rent paid for more
than the current month in which the foreclosure occurred.

       

      SECTION
13.2.                                ESTOPPEL
CERTIFICATE.

       

      (a)           Tenant
shall, at any time upon not less than ten (10) days prior written notice from
Landlord, execute, acknowledge and deliver to Landlord, in any form that
Landlord may reasonably require, a statement in writing (i) certifying that this
Lease is unmodified and in full force and effect (or, if modified, stating the
nature of the modification and certifying that this Lease, as modified, is in
full force and effect) and the dates to which the rental, additional rent and
other charges have been paid in advance, if any, and (ii) acknowledging that, to
Tenant's knowledge, there are no uncured defaults on the part of Landlord, or
specifying each default if any are claimed, and (iii) setting forth all further
information that Landlord or any purchaser or encumbrancer may reasonably
require.  Tenant's statement may be relied upon by any prospective
purchaser or encumbrancer of all or any portion of the Building or
Project.

       

      (b)           Notwithstanding
any other rights and remedies of Landlord, Tenant's failure to deliver any
estoppel statement within the provided time shall be conclusive upon Tenant that
(i) this Lease is in full force and effect, without modification except as may
be represented by Landlord, (ii) there are no uncured Events of Default in
Landlord's performance, and (iii) not more than one month's rental has been paid
in advance.

       

      SECTION
13.3.                                FINANCIALS.

       

      

      
        
          
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      (a)           Tenant
shall deliver to Landlord, prior to the execution of this Lease and thereafter
at any time upon Landlord's request (but not more frequently than once in any
calendar year during the Term), Tenant's current tax returns and financial
statements, certified true, accurate and complete by the chief financial officer
of Tenant, including a balance sheet and profit and loss statement for the most
recent prior year, or, in the event Tenant is a publicly traded corporation on a
nationally recognized stock exchange, Tenant's current financial reports filed
with the Securities and Exchange Commission (collectively, the "Statements"), which Statements
shall accurately and completely reflect the financial condition of
Tenant.  Landlord agrees that it will keep the Statements
confidential, except that Landlord shall have the right to deliver the same to
any proposed purchaser of the Building or Project, and to any encumbrancer of
all or any portion of the Building or Project.  Notwithstanding the
foregoing, so long as Tenant is a publicly-traded corporation whose stock is
traded on a nationally recognized exchange or on NASDAQ, the “Statements” shall
consist of Tenant’s most recently publicly disclosed financial
statements.

       

      (b)           Tenant
acknowledges that Landlord is relying on the Statements in its determination to
enter into this Lease, and Tenant represents to Landlord, which representation
shall be deemed made on the date of this Lease and again on the Commencement
Date, that no material change in the financial condition of Tenant, as reflected
in the Statements, has occurred since the date Tenant delivered the Statements
to Landlord.  The Statements are represented and warranted by Tenant
to be correct and to accurately and fully reflect Tenant's true financial
condition as of the date of submission by any Statements to
Landlord.

       

      ARTICLE
XIV.  EVENTS OF DEFAULT AND REMEDIES

       

      SECTION
14.1.                                TENANT'S DEFAULTS.  In addition to
any other breaches of this Lease which are defined as Events of Default in this
Lease, the occurrence of any one or more of the following events shall
constitute an Event of Default by Tenant:

       

      (a)           The
failure by Tenant to make any payment of Basic Rent or additional rent required
to be made by Tenant, as and when due, where the failure continues for a period
of three (3) days after written notice from Landlord to Tenant; provided,
however, that any such notice shall be in lieu of, and not in addition to, any
notice required under California Code of Civil Procedure Section 1161 and
1161(a) as amended.  For purposes of these Events of Default and
remedies provisions, the term "additional rent" shall be
deemed to include all amounts of any type whatsoever other than Basic Rent to be
paid by Tenant pursuant to the terms of this Lease.

       

      (b)           The
assignment, sublease, encumbrance or other transfer of this Lease by Tenant,
either voluntarily or by operation of law, whether by judgment, execution,
transfer by intestacy or testacy, or other means, without the prior written
consent of Landlord when consent is required by this Lease.

       

      (c)           The
discovery by Landlord that any financial statement provided by Tenant, or by any
affiliate, successor or guarantor of Tenant, was materially false.

       

      (d)           The
failure of Tenant to timely and fully provide any subordination agreement,
estoppel certificate or financial statements in accordance with the requirements
of Article XIII.

       

      (e)           The
abandonment of the Premises by Tenant.

       

      (f)           The
failure or inability by Tenant to observe or perform any of the express or
implied covenants or provisions of this Lease to be observed or performed by
Tenant, other than as specified in this Section 14.1, where the failure
continues for a period of thirty (30) days after written notice from Landlord to
Tenant or such shorter period as is specified in any other provision of this
Lease; provided, however, that any such notice shall be in lieu of, and not in
addition to, any notice required under California Code of Civil Procedure
Section 1161 and 1161(a) as amended. However, if the nature of the failure is
such that more than thirty (30) days are reasonably required for its cure, then
Tenant shall not be deemed to have committed an Event of Default if Tenant
commences the cure within thirty (30) days, and thereafter diligently pursues
the cure to completion.

       

      (g)           (i)
The making by Tenant of any general assignment for the benefit of creditors;
(ii) the filing by or against Tenant of a petition to have Tenant adjudged a
Chapter 7 debtor under the Bankruptcy Code or to have debts discharged or a
petition for reorganization or arrangement under any law relating to bankruptcy
(unless, in the case of a petition filed against Tenant, the same is dismissed
within thirty (30) days); (iii) the appointment of a trustee or receiver to take
possession of substantially all of Tenant's assets located at the Premises or of
Tenant's interest in this Lease, if possession is not restored to Tenant within
thirty (30) days; (iv) the attachment, execution or other judicial seizure of
substantially all of Tenant's assets located at the Premises or of Tenant's
interest in this Lease, where the seizure is not discharged within thirty (30)
days; (v) Tenant's convening of a meeting of its creditors for the purpose of
effecting a moratorium upon or composition of its debts or (vi) the failure of
Tenant to pay its material obligations to creditors as and when they become due
and payable, other than as a result of a good faith dispute by Tenant as to the
amount due to such creditors.  Landlord shall not be deemed to have
knowledge of any event described in this Section 14.1(g) unless notification in
writing is received by Landlord, nor shall there be any presumption attributable
to Landlord of Tenant's insolvency.  In the event that any provision
of this Section 14.1(g) is contrary to applicable law, the provision shall be of
no force or effect.

      
        
          
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      SECTION
14.2.                                LANDLORD'S
REMEDIES.

       

      (a)           If
an Event of Default by Tenant occurs, then in addition to any other remedies
available to Landlord, Landlord may exercise the following
remedies:

       

      (i)           Landlord
may terminate Tenant's right to possession of the Premises by any lawful means,
in which case this Lease shall terminate and Tenant shall immediately surrender
possession of the Premises to Landlord.  Such termination shall not
affect any accrued obligations of Tenant under this Lease.  Upon
termination, Landlord shall have the right to reenter the Premises and remove
all persons and property as required by law.  Landlord shall also be
entitled to recover from Tenant:

       

      (1)           The
worth at the time of award of the unpaid Basic Rent and additional rent which
had been earned at the time of termination;

       

      (2)           The
worth at the time of award of the amount by which the unpaid Basic Rent and
additional rent which would have been earned after termination until the time of
award exceeds the amount of such loss that Tenant proves could have been
reasonably avoided;

       

      (3)           The
worth at the time of award of the amount by which the unpaid Basic Rent and
additional rent for the balance of the Term after the time of award exceeds the
amount of such loss that Tenant proves could be reasonably avoided;

       

      (4)           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 from Tenant's Event
of Default, including, but not limited to, the cost of recovering possession of
the Premises, refurbishment of the Premises, marketing costs, commissions and
other expenses of reletting, including necessary repair, the unamortized portion
of any tenant improvements and brokerage commissions funded by Landlord in
connection with this Lease, reasonable attorneys' fees, and any other reasonable
costs; and

       

      (5)           At
Landlord's election, all other amounts in addition to or in lieu of the
foregoing as may be permitted by law.  The term “rent” as used in the
Lease shall be deemed to mean the Basic Rent, Tenant’s Share of Operating
Expenses and any other sums required to be paid by Tenant to Landlord pursuant
to the terms of this Lease, including, without limitation, any sums that may be
owing from Tenant pursuant to Section 4.3 of this Lease.  Any sum,
other than Basic Rent, shall be computed on the basis of the average monthly
amount accruing during the twenty-four (24) month period immediately prior to
the Event of Default, except that if it becomes necessary to compute such rental
before the twenty-four (24) month period has occurred, then the computation
shall be on the basis of the average monthly amount during the shorter
period.  As used in Sections 14.2(a)(i) (1) and (2) above, the "worth
at the time of award" shall be computed by allowing interest at the rate of ten
percent (10%) per annum.  As used in Section 14.2(a)(i)(3) above, the
"worth at the time of award" shall be computed by discounting the amount at the
discount rate of the Federal Reserve Bank of San Francisco at the time of award
plus one percent (1%).

       

      (ii)           Landlord
may elect not to terminate Tenant's right to possession of the Premises, in
which event Landlord may continue to enforce all of its rights and remedies
under this Lease, including the right to collect all rent as it becomes
due.  Efforts by the Landlord to maintain, preserve or relet the
Premises, or the appointment of a receiver to protect the Landlord's interests
under this Lease, shall not constitute a termination of the Tenant's right to
possession of the Premises.  In the event that Landlord elects to
avail itself of the remedy provided by this Section 14.2(a)(ii), Landlord shall
not unreasonably withhold its consent to an assignment or subletting of the
Premises subject to the reasonable standards for Landlord's consent as are
contained in this Lease.

       

      (b)           The
various rights and remedies reserved to Landlord in this Lease or otherwise
shall be cumulative and, except as otherwise provided by California law,
Landlord may pursue any or all of its rights and remedies at the same
time.

       

      (c)           No
delay or omission of Landlord to exercise any right or remedy shall be construed
as a waiver of the right or remedy or of any breach or Event of Default by
Tenant.  The acceptance by Landlord of rent shall not be a (i) waiver
of any preceding breach or Event of Default by Tenant of any provision of this
Lease, other than the failure of Tenant to pay the particular rent accepted,
regardless of Landlord's knowledge of the preceding breach or Event of Default
at the time of acceptance of rent, or (ii) a waiver of Landlord's right to
exercise any remedy available to Landlord by virtue of the breach or Event of
Default.  The acceptance of any payment from a debtor in possession, a
trustee, a receiver or any other person acting on behalf of Tenant or Tenant's
estate shall not waive or cure a breach or Event of Default under Section
14.1.  No payment by Tenant or receipt by Landlord of a lesser amount
than the rent required by this Lease shall be deemed to be other than a partial
payment on account of the earliest due stipulated rent, nor shall any
endorsement or statement on any check or letter be deemed an accord and
satisfaction and Landlord shall accept the check or payment without prejudice to
Landlord's right to recover the balance of the rent or pursue any other remedy
available to it.  No act or thing done by Landlord or Landlord's
agents during the Term shall be deemed an acceptance of a surrender of the
Premises, and no agreement to accept a surrender shall be valid unless in
writing and signed by Landlord.  No employee of Landlord or of
Landlord's agents

      
        
          
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      shall
have any power to accept the keys to the Premises prior to the termination of
this Lease, and the delivery of the keys to any employee shall not operate as a
termination of this Lease or a surrender of the Premises.

       

      (d)           Any
agreement for free or abated rent or other charges, or for the giving or paying
by Landlord to or for Tenant of any cash or other bonus, inducement or
consideration for Tenant's entering into this Lease ("Inducement Provisions") shall
be deemed conditioned upon Tenant's full and faithful performance of the terms,
covenants and conditions of this Lease.  Upon an Event of Default
(beyond any applicable notice and cure periods) under this Lease by Tenant, any
such Inducement Provisions shall automatically be deemed deleted from this Lease
and of no further force or effect and the amount of any rent reduction or
abatement or other bonus or consideration already given by Landlord or received
by Tenant as an Inducement shall be immediately due and payable by Tenant to
Landlord.

       

      SECTION
14.3.                                LATE
PAYMENTS.

       

      (a)           Any
payment due to Landlord under this Lease, including without limitation Basic
Rent, Tenant's Share of Operating Expenses or any other payment due to Landlord
under this Lease, that is not received by Landlord within ten (10) days
following the date due shall bear interest at the maximum rate permitted by law
from the date due until fully paid.  The payment of interest shall not
cure any breach or Event of Default by Tenant under this Lease.  In
addition, Tenant acknowledges that the late payment by Tenant to Landlord of
Basic Rent and Tenant's Share of Operating Expenses will cause Landlord to incur
costs not contemplated by this Lease, the exact amount of which will be
extremely difficult and impracticable to ascertain.  Those costs may
include, but are not limited to, administrative, processing and accounting
charges, and late charges which may be imposed on Landlord by the terms of any
ground lease, mortgage or trust deed covering the
Premises.  Accordingly, if any Basic Rent or Tenant's Share of
Operating Expenses due from Tenant shall not be received by Landlord or
Landlord's designee within ten (10) days following the date due, then Tenant
shall pay to Landlord, in addition to the interest provided above, a late
charge, which the Tenant agrees is reasonable, in a sum equal to the greater of
five percent (5%) of the amount overdue or Two Hundred Fifty Dollars ($250.00)
for each delinquent payment.  Acceptance of a late charge by Landlord
shall not constitute a waiver of Tenant's breach or Event of Default with
respect to the overdue amount, nor shall it prevent Landlord from exercising any
of its other rights and remedies.

       

      (b)           Following
each second installment of Basic Rent and/or the payment of Tenant's Share of
Operating Expenses within any twelve (12) month period that is not paid within
ten (10) days following the date due, Landlord shall have the option to require
that beginning with the first payment of Basic Rent next due, Basic Rent and the
Tenant's Share of Operating Expenses shall no longer be paid in monthly
installments but shall be payable quarterly three (3) months in
advance.  Should Tenant deliver to Landlord, at any time during the
Term, two (2) or more insufficient checks, the Landlord may require that all
monies then and thereafter due from Tenant be paid to Landlord by cashier's
check.  If any check for any payment to Landlord hereunder is returned
by the bank for any reason, such payment shall not be deemed to have been
received by Landlord and Tenant shall be responsible for any applicable late
charge, interest payment and the charge to Landlord by its bank for such
returned check.  Nothing in this Section shall be construed to compel
Landlord to accept Basic Rent, Tenant's Share of Operating Expenses or any other
payment from Tenant if there exists an Event of Default unless such payment
fully cures any and all such Event of Default.  Any acceptance of any
such payment shall not be deemed to waive any other right of Landlord under this
Lease.  Any payment by Tenant to Landlord may be applied by Landlord,
in its sole and absolute discretion, in any order determined by Landlord to any
amounts then due to Landlord.

       

      SECTION
14.4.                                RIGHT OF LANDLORD TO
PERFORM.  All covenants and
agreements to be performed by Tenant under this Lease shall be performed at
Tenant's sole cost and expense and without any abatement of rent or right of
set-off.  If Tenant fails to pay any sum of money, other than rent
payable to Landlord, or fails to perform any other act on its part to be
performed under this Lease, and the failure continues beyond any applicable
grace period set forth in Section 14.1, then in addition to any other available
remedies, Landlord may, at its election make the payment or perform the other
act on Tenant's part and Tenant hereby grants Landlord the right to enter onto
the Premises in order to carry out such performance.  Landlord's
election to make the payment or perform the act on Tenant's part shall not give
rise to any responsibility of Landlord to continue making the same or similar
payments or performing the same or similar acts nor shall Landlord be
responsible to Tenant for any damage caused to Tenant as the result of such
performance by Landlord.  Tenant shall, promptly upon demand by
Landlord, reimburse Landlord for all sums paid by Landlord and all necessary
incidental costs, together with interest at the maximum rate permitted by law
from the date of the payment by Landlord.

       

      SECTION
14.5.                                DEFAULT BY LANDLORD.  Landlord shall
not be deemed to be in default in the performance of any obligation under this
Lease, and Tenant shall have no rights to take any action against Landlord,
unless and until Landlord has failed to perform the obligation within thirty
(30) days after written notice by Tenant to Landlord specifying in reasonable
detail the nature and extent of the failure; provided, however, that if the
nature of Landlord's obligation is such that more than thirty (30) days are
required for its performance, then Landlord shall not be deemed to be in default
if it commences performance within the thirty (30) day period and thereafter
diligently pursues the cure to completion.  In the event of Landlord's
default under this Lease, Tenant's sole remedies shall be to seek damages or
specific performance from Landlord, provided that any damages shall be limited
to Tenant's actual out-of-pocket expenses and shall in no event include any
consequential damages, lost profits or opportunity costs.

      
        
          
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      SECTION
14.6.                                EXPENSES AND LEGAL FEES.  All sums
reasonably incurred by Landlord in connection with any Event of Default by
Tenant under this Lease or holding over of possession by Tenant after the
expiration or earlier termination of this Lease, or any action related to a
filing for bankruptcy or reorganization by Tenant, including without limitation
all costs, expenses and actual accountants, appraisers, attorneys and other
professional fees, and any collection agency or other collection charges, shall
be due and payable to Landlord on demand, and shall bear interest at the rate of
ten percent (10%) per annum.  Should either Landlord or Tenant bring
any action in connection with this Lease, the prevailing party shall be entitled
to recover as a part of the action its reasonable attorneys' fees, and all other
costs.  The prevailing party for the purpose of this Section shall be
determined by the trier of the facts.

       

      SECTION
14.7.                                WAIVER OF JURY TRIAL.  LANDLORD AND TENANT EACH ACKNOWLEDGES THAT IT IS
AWARE OF AND HAS HAD THE ADVICE OF COUNSEL OF ITS
CHOICE WITH RESPECT TO ITS RIGHTS TO TRIAL BY JURY, AND EACH PARTY DOES HEREBY EXPRESSLY
AND KNOWINGLY WAIVE AND RELEASE ALL SUCH RIGHTS TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER PARTY HERETO AGAINST THE
OTHER (AND/OR AGAINST ITS OFFICERS, DIRECTORS,
EMPLOYEES, AGENTS, OR SUBSIDIARY OR AFFILIATED ENTITIES) ON ANY MATTERS
WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, TENANT'S USE
OR OCCUPANCY OF THE PREMISES, AND/OR ANY CLAIM OF INJURY OR
DAMAGE. FURTHERMORE, THIS WAIVER AND RELEASE OF ALL RIGHTS TO A JURY TRIAL IS DEEMED TO
BE INDEPENDENT OF EACH AND EVERY OTHER PROVISION, COVENANT,
AND/OR CONDITION SET FORTH IN THIS LEASE.

       

      SECTION
14.8.                                SATISFACTION OF JUDGMENT.  The obligations
of Landlord do not constitute the personal obligations of the individual
partners, trustees, directors, officers or shareholders of Landlord or its
constituent partners.  Should Tenant recover a money judgment against
Landlord, such judgment shall be satisfied only from the interest of Landlord in
the Project and out of the rent or other income from such property receivable by
Landlord or out of consideration received by Landlord from the sale or other
disposition of all or any part of Landlord's right, title or interest in the
Project and no action for any deficiency may be sought or obtained by
Tenant.

       

      ARTICLE
XV.  END OF TERM

       

      SECTION
15.1.                                HOLDING OVER.  This Lease shall
terminate without further notice upon the expiration of the Term, and any
holding over by Tenant after the expiration shall not constitute a renewal or
extension of this Lease, or give Tenant any rights under this Lease, except when
in writing signed by both parties.  Any period of time following the
Expiration Date or earlier termination of this Lease required for Tenant to
remove its property or to place the Premises in the condition required pursuant
to Section 15.3 (or for Landlord to do so if Tenant fails to do so) shall
be deemed a holding over by Tenant.  If Tenant holds over for any
period after the Expiration Date (or earlier termination) of the Term without
the prior written consent of Landlord, such possession shall constitute a
tenancy at sufferance only and an Event of Default under this Lease; such
holding over with the prior written consent of Landlord shall constitute a
month-to-month tenancy commencing on the first (1st) day following the
termination of this Lease and terminating thirty (30) days following delivery of
written notice of termination by either Landlord or Tenant to the
other.  In either of such events, possession shall be subject to all
of the terms of this Lease, except that the monthly Basic Rent shall be one
hundred fifty percent (150%) of the greater of (a) the Basic Rent for the
month immediately preceding the date of termination or (b) the then currently
scheduled Basic Rent for comparable space in the Project.  The
acceptance by Landlord of monthly holdover rental in a lesser amount shall not
constitute a waiver of Landlord’s right to recover the full amount due for any
holdover by Tenant, unless otherwise agreed in writing by
Landlord.  If Tenant fails to surrender the Premises upon the
expiration of this Lease despite demand to do so by Landlord, Tenant shall
indemnify and hold Landlord harmless from all loss or liability, including
without limitation, any claims made by any succeeding tenant relating to such
failure to surrender.  The foregoing provisions of this Section are in
addition to and do not affect Landlord's right of re-entry or any other rights
of Landlord under this Lease or at law.

       

      SECTION
15.2.                                MERGER ON TERMINATION.  The voluntary or
other surrender of this Lease by Tenant, or a mutual termination of this Lease,
shall terminate any or all existing subleases unless Landlord, at its option,
elects in writing to treat the surrender or termination as an assignment to it
of any or all subleases affecting the Premises.

       

      SECTION
15.3.                                SURRENDER OF PREMISES; REMOVAL OF
PROPERTY.  Subject to the
provisions of 7.3 of this Lease, upon the Expiration Date or upon any earlier
termination of this Lease, Tenant shall quit and surrender possession of the
Premises to Landlord in as good order, condition and repair as when received or
as hereafter may be improved by Landlord or Tenant, reasonable wear and tear and
repairs which are Landlord's obligation excepted, and shall, without expense to
Landlord, remove or cause to be removed from the Premises all

      
        
          
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      personal
property and debris, except for any items that Landlord may by written
authorization allow to remain.  Tenant shall repair all damage to the
Premises resulting from the removal, which repair shall include the patching and
filling of holes and repair of structural damage, provided that Landlord may
instead elect to repair any structural damage at Tenant's expense.  If
Tenant shall fail to comply with the provisions of this Section, Landlord may
effect the removal and/or make any repairs, and the cost to Landlord shall be
additional rent payable by Tenant upon demand.  If Tenant fails to
remove Tenant's personal property from the Premises upon the expiration of the
Term, Landlord may remove, store, dispose of and/or retain such personal
property, at Landlord's option, in accordance with then applicable laws, all at
the expense of Tenant.  If requested by Landlord, Tenant shall
execute, acknowledge and deliver to Landlord an instrument in writing releasing
and quitclaiming to Landlord all right, title and interest of Tenant in the
Premises.

       

      ARTICLE
XVI.  PAYMENTS AND NOTICES

       

      All sums
payable by Tenant to Landlord shall be deemed to be rent under this Lease and
shall be paid, without deduction or offset, in lawful money of the United States
to Landlord at its address set forth in Item 12 of the Basic Lease Provisions,
or at any other place as Landlord may designate in writing.  Unless
this Lease expressly provides otherwise, as for example in the payment of Basic
Rent and the Tenant's Share of Operating Costs pursuant to Sections 4.1 and
4.2, all payments shall be due and payable within five (5) days after
demand.  All payments requiring proration shall be prorated on the
basis of a thirty (30) day month and a three hundred sixty (360) day
year.  Any notice, election, demand, consent, approval or other
communication to be given or other document to be delivered by either party to
the other may be delivered in person or by courier or overnight delivery service
to the other party, or may be deposited in the United States mail, duly
registered or certified, postage prepaid, return receipt requested, and
addressed to the other party at the address set forth in Item 12 of the Basic
Lease Provisions, or if to Tenant, at that address or, from and after the
Commencement Date, at the Premises (whether or not Tenant has departed from,
abandoned or vacated the Premises).  Either party may, by written
notice to the other, served in the manner provided in this Article, designate a
different address.  If any notice or other document is sent by mail,
it shall be deemed served or delivered seventy-two (72) hours after
mailing.  If more than one person or entity is named as Tenant under
this Lease, service of any notice upon any one of them shall be deemed as
service upon all of them.

       

      ARTICLE
XVII.  RULES AND REGULATIONS

       

      Tenant
agrees to observe faithfully and comply strictly with the Rules and Regulations,
attached as Exhibit E, and
any reasonable and nondiscriminatory amendments, modifications and/or additions
as may be adopted and published by written notice to tenants by Landlord for the
safety, care, security, good order, or cleanliness of the Premises, Building,
Project and Common Areas.  Landlord shall not be liable to Tenant for
any violation of the Rules and Regulations or the breach of any covenant or
condition in any lease by any other tenant or such tenant's agents, employees,
contractors, guests or invitees.  One or more waivers by Landlord of
any breach of the Rules and Regulations by Tenant or by any other tenant(s)
shall not be a waiver of any subsequent breach of that rule or any
other.  Tenant's failure to keep and observe the Rules and Regulations
shall constitute a breach of this Lease.  In the case of any conflict
between the Rules and Regulations and this Lease, this Lease shall be
controlling.

       

      ARTICLE
XVIII.  BROKER'S COMMISSION

       

      The
parties recognize as the broker(s) who negotiated this Lease the firm(s), if
any, whose name(s) is (are) stated in Item 10 of the Basic Lease Provisions, and
agree that Landlord shall be responsible for the payment of brokerage
commissions to those broker(s) unless otherwise provided in this
Lease.  Landlord and Tenant each warrant to the other that it has had
no dealings with any other real estate broker or agent in connection with the
negotiation of this Lease, and Landlord and Tenant each agree to indemnify and
hold the other party harmless from any cost, expense or liability (including
reasonable attorneys' fees) for any compensation, commissions or charges claimed
by any other real estate broker or agent employed or claiming to represent or to
have been employed by the indemnifying party in connection with the negotiation
of this Lease.  The foregoing agreement shall survive the termination
of this Lease.  If Tenant fails to take possession of the Premises
without cause or if this Lease otherwise terminates prior to the Expiration Date
as the result of failure of performance by Tenant, Landlord shall be entitled to
recover from Tenant the unamortized portion of any brokerage commission funded
by Landlord in addition to any other damages to which Landlord may be
entitled.

       

      ARTICLE
XIX.  TRANSFER OF LANDLORD'S INTEREST

       

      In the
event of any transfer of Landlord's interest in the Premises, the transferor
shall be automatically relieved of all further obligations on the part of
Landlord, and the transferor shall be relieved of any obligation to pay any
funds in which Tenant has an interest to the extent that such funds have been
turned over, subject to that interest, to the transferee and Tenant is notified
of the transfer as required by law.  No beneficiary of a deed of trust
to which this Lease is or may be subordinate, and no landlord under a so-called
sale-leaseback, shall be responsible in connection with the Security Deposit,
unless the mortgagee or beneficiary under the deed of trust or the landlord
actually receives the Security Deposit.  It is intended that the
covenants and obligations contained in this Lease on

      
        
          
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      the part
of Landlord shall, subject to the foregoing, be binding on Landlord, its
successors and assigns, only during and in respect to their respective
successive periods of ownership.

       

      ARTICLE
XX.  INTERPRETATION

       

      SECTION
20.1.                                GENDER AND NUMBER.  Whenever the
context of this Lease requires, the words "Landlord" and "Tenant" shall include the
plural as well as the singular, and words used in neuter, masculine or feminine
genders shall include the others.

       

      SECTION
20.2.                                HEADINGS.  The captions and
headings of the articles and sections of this Lease are for convenience only,
are not a part of this Lease and shall have no effect upon its construction or
interpretation.

       

      SECTION
20.3.                                JOINT AND SEVERAL LIABILITY.  If more than one
person or entity is named as Tenant, the obligations imposed upon each shall be
joint and several and the act of or notice from, or notice or refund to, or the
signature of, any one or more of them shall be binding on all of them with
respect to the tenancy of this Lease, including, but not limited to, any
renewal, extension, termination or modification of this Lease.

       

      SECTION
20.4.                                SUCCESSORS.  Subject to
Articles IX and XIX, all rights and liabilities given to or imposed upon
Landlord and Tenant shall extend to and bind their respective heirs, executors,
administrators, successors and assigns.  Nothing contained in this
Section is intended, or shall be construed, to grant to any person other than
Landlord and Tenant and their successors and assigns any rights or remedies
under this Lease.

       

      SECTION
20.5.                                TIME OF ESSENCE.  Time is of the
essence with respect to the performance of every provision of this
Lease.

       

      SECTION
20.6.                                CONTROLLING LAW/VENUE.  This Lease shall
be governed by and interpreted in accordance with the laws of the State of
California.  Any litigation commenced concerning any matters
whatsoever arising out of or in any way connected to this Lease shall be
initiated in the Superior Court of the county in which the Project is
located.

       

      SECTION
20.7.                                SEVERABILITY.  If any term or
provision of this Lease, the deletion of which would not adversely affect the
receipt of any material benefit by either party or the deletion of which is
consented to by the party adversely affected, shall be held invalid or
unenforceable to any extent, the remainder of this Lease shall not be affected
and each term and provision of this Lease shall be valid and enforceable to the
fullest extent permitted by law.

       

      SECTION
20.8.                                WAIVER AND CUMULATIVE REMEDIES.  One or more
waivers by Landlord or Tenant of any breach of any term, covenant or condition
contained in this Lease shall not be a waiver of any subsequent breach of the
same or any other term, covenant or condition.  Consent to any act by
one of the parties shall not be deemed to render unnecessary the obtaining of
that party's consent to any subsequent act.  No breach by Tenant of
this Lease shall be deemed to have been waived by Landlord unless the waiver is
in a writing signed by Landlord.  The rights and remedies of Landlord
under this Lease shall be cumulative and in addition to any and all other rights
and remedies which Landlord may have.

       

      SECTION
20.9.                                INABILITY TO PERFORM.  In the event that
either party shall be delayed or hindered in or prevented from the performance
of any work or in performing any act required under this Lease by reason of any
cause beyond the reasonable control of that party, other than financial
inability, then the performance of the work or the doing of the act shall be
excused for the period of the delay and the time for performance shall be
extended for a period equivalent to the period of the delay.  The
provisions of this Section shall not operate to excuse Tenant from the prompt
payment of rent or from the timely performance of any other obligation under
this Lease within Tenant's reasonable control.

       

      SECTION
20.10.                                ENTIRE AGREEMENT.  This Lease and
its exhibits and other attachments cover in full each and every agreement of
every kind between the parties concerning the Premises, the Building, and the
Project, and all preliminary negotiations, oral agreements, understandings
and/or practices, except those contained in this Lease, are superseded and of no
further effect.  Tenant waives its rights to rely on any
representations or promises made by Landlord or others which are not contained
in this Lease.  No verbal agreement or implied covenant shall be held
to modify the provisions of this Lease, any statute, law, or custom to the
contrary notwithstanding.

      
        
          
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      SECTION
20.11.                                QUIET ENJOYMENT.  Upon the
observance and performance of all the covenants, terms and conditions on
Tenant's part to be observed and performed, and subject to the other provisions
of this Lease, Tenant shall have the right of quiet enjoyment and use of the
Premises for the Term without hindrance or interruption by Landlord or any other
person claiming by or through Landlord.

       

      SECTION
20.12.                                SURVIVAL.  All covenants of
Landlord or Tenant which reasonably would be intended to survive the expiration
or sooner termination of this Lease, including without limitation any warranty
or indemnity hereunder, shall so survive and continue to be binding upon and
inure to the benefit of the respective parties and their successors and
assigns.

       

      SECTION
20.13.                                INTERPRETATION.  This Lease shall
not be construed in favor of or against either party, but shall be construed as
if both parties prepared this Lease.

       

      ARTICLE
XXI.  EXECUTION AND RECORDING

       

      SECTION
21.1.                                COUNTERPARTS.  This Lease may be
executed in one or more counterparts, each of which shall constitute an original
and all of which shall be one and the same agreement.

       

      SECTION
21.2.                                CORPORATE, LIMITED LIABILITY COMPANY
AND PARTNERSHIP AUTHORITY.  If Tenant is a
corporation, limited liability company or partnership, each individual executing
this Lease on behalf of the corporation, limited liability company or
partnership represents and warrants that he or she is duly authorized to execute
and deliver this Lease on behalf of the corporation, limited liability company
or partnership, and that this Lease is binding upon the corporation, limited
liability company or partnership in accordance with its terms.  Tenant
shall, at Landlord's request, deliver a certified copy of its board of
directors' resolution, operating agreement or partnership agreement or
certificate authorizing or evidencing the execution of this Lease.

       

      SECTION
21.3.                                EXECUTION OF LEASE; NO OPTION OR
OFFER.  The submission of
this Lease to Tenant shall be for examination purposes only, and shall not
constitute an offer to or option for Tenant to lease the
Premises.  Execution of this Lease by Tenant and its return to
Landlord shall not be binding upon Landlord, notwithstanding any time interval,
until Landlord has in fact executed and delivered this Lease to Tenant, it being
intended that this Lease shall only become effective upon execution by Landlord
and delivery of a fully executed counterpart to Tenant.

       

      SECTION
21.4.                                RECORDING.  Tenant shall not
record this Lease without the prior written consent of
Landlord.  Tenant, upon the request of Landlord, shall execute and
acknowledge a "short
form" memorandum of this Lease for recording purposes.

       

      SECTION
21.5.                                AMENDMENTS.  No amendment or
termination of this Lease shall be effective unless in writing signed by
authorized signatories of Tenant and Landlord, or by their respective successors
in interest.  No actions, policies, oral or informal arrangements,
business dealings or other course of conduct by or between the parties shall be
deemed to modify this Lease in any respect.

       

      SECTION
21.6.                                EXECUTED COPY.  Any fully
executed photocopy or similar reproduction of this Lease shall be deemed an
original for all purposes.

       

      SECTION
21.7.                                ATTACHMENTS.  All exhibits,
amendments, riders and addenda attached to this Lease are hereby incorporated
into and made a part of this Lease.

       

      ARTICLE
XXII.  MISCELLANEOUS

       

      SECTION
22.1.                                NONDISCLOSURE OF LEASE
TERMS.  Tenant
acknowledges and agrees that the terms of this Lease are confidential and
constitute proprietary information of Landlord.  Disclosure of the
terms could adversely affect the ability of Landlord to negotiate other leases
and impair Landlord's relationship with other tenants.  Accordingly,
Tenant

      
        
          
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2005 

            701423328v1

          

           

        

        
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      agrees
that it, and its partners, officers, directors, employees and attorneys, shall
not intentionally and voluntarily disclose, by public filings or otherwise, the
terms and conditions of this Lease ("Confidential Information") to any third
party, either directly or indirectly, without the prior written consent of
Landlord, which consent may be given or withheld in Landlord's sole and absolute
discretion.  The foregoing restriction shall not apply if either: (i)
Tenant is required to disclose the Confidential Information in response to a
subpoena or other regulatory, administrative or court order, (ii) independent
legal counsel to Tenant delivers a written opinion to Landlord that Tenant is
required to disclose the Confidential Information to, or file a copy of this
Lease with, any governmental agency or any stock exchange; provided however,
that in such event, Tenant shall, before making any such disclosure (A) provide
Landlord with prompt written notice of such required disclosure, (B) at Tenant's
sole cost, take all reasonable legally available steps to resist or narrow such
requirement, including without limitation preparing and filing a request for
confidential treatment of the Confidential Information and (C) if disclosure of
the Confidential Information is required by subpoena or other regulatory,
administrative or court order, Tenant shall provide Landlord with as much
advance notice of the possibility of such disclosure as practical so that
Landlord may attempt to stop such disclosure or obtain an order concerning such
disclosure.  The form and content of a request by Tenant for
confidential treatment of the Confidential Information shall be provided to
Landlord at least five (5) business days before its submission to the applicable
governmental agency or stock exchange and is subject to the prior written
approval of Landlord.  In addition, Tenant may disclose the terms of
this Lease to Tenant’s employees, shareholders, investors, legal counsel,
lenders, agents, accountants and to prospective assignees of this Lease and
prospective subtenants under this Lease with whom Tenant is actively negotiating
such an assignment or sublease.

       

      SECTION
22.2.                                GUARANTY.  As a condition to
the execution of this Lease by Landlord, the obligations, covenants and
performance of the Tenant as herein provided shall be guaranteed in writing by
the Guarantor(s) listed in Item 7 of the Basic Lease Provisions ("Guarantor"), if any, on a form
of guaranty provided by Landlord ("Guaranty").  Any
default by a Guarantor under the Guaranty shall be deemed to be an Event of
Default under the terms of this Lease.  In addition, any filing by or
against a Guarantor of a petition to have such Guarantor adjudged a Chapter 7
debtor under the Bankruptcy Code or to have debts discharged or a petition for
reorganization or arrangement under any law relating to bankruptcy (unless, in
the case of a petition filed against such Guarantor, the same is dismissed
within thirty (30) days), a Guarantor's convening of a meeting of its creditors
for the purpose of effecting a moratorium upon or composition of its debts or
the failure of a Guarantor to pay its material obligations to creditors as and
when they become due and payable, other than as a result of a good faith dispute
by such Guarantor, shall be deemed to be an Event of Default by
Tenant.

       

      SECTION
22.3.                                [Intentionally
Deleted.]

       

      SECTION
22.4.                                MORTGAGEE
PROTECTION.  No act or failure to act on the part of Landlord
which would otherwise entitle Tenant to be relieved of its obligations hereunder
shall result in such a release or termination unless (a) Tenant has given notice
by registered or certified mail to any beneficiary of a deed of trust or
mortgage covering the Building whose address has been furnished to Tenant and
(b) such beneficiary is afforded a reasonable opportunity to cure the default by
Landlord (which in no event shall be less than sixty (60) days), including, if
necessary to effect the cure, time to obtain possession of the Building by power
of sale or judicial foreclosure provided that such foreclosure remedy is
diligently pursued.  Tenant agrees that each beneficiary of a deed of
trust or mortgage covering the Building is an express third party beneficiary
hereof, Tenant shall have no right or claim for the collection of any deposit
from such beneficiary or from any purchaser at a foreclosure sale unless such
beneficiary or purchaser shall have actually received and not refunded the
deposit, and Tenant shall comply with any written directions by any beneficiary
to pay rent due hereunder directly to such beneficiary without determining
whether a default exists under such beneficiary's deed of trust.

       

      SECTION
22.5.                                COVENANTS AND CONDITIONS.  All of the
provisions of this Lease shall be construed to be conditions as well as
covenants as though the words specifically expressing or imparting covenants and
conditions were used in each separate provision.

       

      SECTION
22.6.                                SECURITY MEASURES.  Tenant hereby
acknowledges that Landlord shall have no obligation whatsoever to provide guard
service or other security measures for the benefit of the Premises or the
Project.  Tenant assumes all responsibility for the protection of
Tenant, its employees, agents, invitees and property from acts of third
parties.  Nothing herein contained shall prevent Landlord, at its sole
option, from providing security protection for the Project or any part thereof,
in which event the cost thereof shall be included within the definition of
Project Costs.

       

      SECTION
22.7.                                MOVING ALLOWANCE.  In consideration
of the execution of this Lease by Tenant, Landlord shall reimburse to Tenant an
amount not to exceed One Hundred Nineteen Thousand Four Hundred Twenty-Five
Dollars ($119,425.00) for the “out of pocket” charges and costs reasonably
incurred by Tenant in connection with Tenant’s move to the Premises, which
charges and costs shall include, without limitation, moving and telephone and
cabling relocation charges, costs incurred for the installation of Tenant’s
signage on the Building, charges incurred in connection
with the change of the Building address from 430 N. McCarthy Blvd. to 490 N.
McCarthy Blvd., up to a maximum of Ten Thousand Dollars ($10,000.00), costs for
equipment or furniture purchases, costs of tenant improvements installed by
Tenant pursuant to Section 7.3 and stationery costs incurred by Tenant in
connection with its move to the Premises.  Landlord shall reimburse
Tenant for such charges and costs within thirty (30) days following receipt of
Tenant’s written request accompanied by invoices or other
reasonably

      
        
          
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2005 

            701423328v1

          

           

        

        
          - 26
-

          
            

          

        

        
           

        

      

       

      detailed
evidence of Tenant’s expenditure of such charges and costs; provided, however,
that all such request(s) for reimbursement must be received by Landlord not
later than June 30, 2006 to be eligible for reimbursement by Landlord as
provided in this Section 22.7.

       

      

       

      LANDLORD:                                                                     TENANT:

      

      THE IRVINE
COMPANY                                                                     CALIFORNIA MICRO DEVICES
CORPORATION,

                                                                           a
California corporation

      

      

      

      By: /s/ Steven M.
Case                                                                By:  /s/R.Gregory
Miller                                                                      

      Steven M.
Case, Senior Vice
President                                             R.
Gregory Miller

      Leasing,
Office
Properties                                                                   Chief
Financial Officer

      

      

      

      By: /s/ Christopher J.
Popma                                                                By:                                                                      

      Christopher
J. Popma, Vice
President                                                                     

      Operations,
Office
Properties                                                                    

      

      

      
        
          
            May 5,
2005 

            701423328v1

          

           

        

        
          
          

          
            

          

        

        
           

        

      

      EXHIBIT
B

      

      THE
IRVINE COMPANY – INVESTMENT PROPERTIES GROUP

      

      HAZARDOUS
MATERIAL SURVEY FORM

      

                 The
purpose of this form is to obtain information regarding the use of hazardous
substances on Investment Properties Group (“IPG”)
property.  Prospective tenants and contractors should answer the
questions in light of their proposed activities on the
premises.  Existing tenants and contractors should answer the
questions as they relate to ongoing activities on the premises and should update
any information previously submitted.

      

                 If
additional space is needed to answer the questions, you may attach separate
sheets of paper to this form.  When completed, the form should be sent
to the following address:

      

      THE
IRVINE COMPANY MANAGEMENT OFFICE

      690 N.
McCarthy Blvd., Suite 100

      Milpitas,
CA  95035

      

                 Your
cooperation in this matter is appreciated.  If you have any questions,
please call your property manager at (949) 720-4400 for assistance.

      

      1.           GENERAL
INFORMATION.

      

                 Name
of Responding
Company:  _____________________________________________

                 Check
all that
apply:                                                                Tenant                                (   )                      Contractor(   )

                                                                      Prospective                                (   )                      Existing                      (   )

      

                 Mailing
Address: _________________________________________________________

                 Contact
person & Title:
____________________________________________________

                 Telephone
Number:  (   ) _____________

      

                 Current TIC
Tenant(s):

      

                 Address
of Lease
Premises:  ________________________________________________

      

                 Length
of Lease or Contract Term:
___________________________________________

      

                 Prospective TIC
Tenant(s):

      

                 Address
of Leased
Premises:  _______________________________________________

      

                 Address
of Current
Operations:  _____________________________________________

      

      Describe
the proposed operations to take place on the property, including principal
products manufactured or services to be conducted.  Existing tenants
and contractors should describe any proposed changes to ongoing
operations.  ____________________________________________________________________________________________________________________________________________________________

      ______________________________________________________________________________

      

      
        	
                2.

              	
                HAZARDOUS
      MATERIALS.  For the purposes of this Survey Form, the
      term “hazardous material” means any raw material, product or agent
      considered hazardous under any state or federal law.  The term
      does not include wastes which are intended to be
  discarded.

              

      

      

      
        	
                 
      

              	
                2.1

              	
                Will
      any hazardous materials be used or stored on
  site?

              

      

      

      
        	
                 
      

              	 	
                Chemical
      Products

              	
                Yes

              	
                (   )

              	
                No

              	
                (   )

              

      

      
        	
                 
      

              	 	
                Biological
      Hazards/

              

      

      
        	
                 
      

              	 	
                   Infectious
      Wastes

              	
                Yes

              	
                (   )

              	
                No

              	
                (   )

              

      

      
        	
                 
      

              	 	
                Radioactive
      Materials

              	
                Yes

              	
                (   )

              	
                No

              	
                (   )

              

      

      
        	
                 
      

              	 	
                Petroleum
      Products

              	
                Yes

              	
                (   )

              	
                No

              	
                (   )

              

      

      

      
        
          
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2005 

            701423328v1

          

           

        

        
          
          

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                2.2

              	
                List
      any hazardous materials to be used or stored, the quantities that will be
      on-site at any given time, and the location and method of storage (e.g.,
      bottles in storage closet on the
premises).

              

      

      

      
        	 	
                Location
      and Method

              

      

      
        	
                 
      

              	 	
                Hazardous
      Materials

              	
                 of
      Storage

              	
                 Quantity

              

      

      

      

      
        	
                 
      

              	 	
                __________________

              	
                __________________

              	
                __________________

              

      

      
        	
                 
      

              	 	
                __________________

              	
                __________________

              	
                __________________

              

      

      
        	
                 
      

              	 	
                __________________

              	
                __________________

              	
                __________________

              

      

      
        	
                 
      

              	 	
                __________________

              	
                __________________

              	
                __________________

              

      

      
        	
                 
      

              	 

      

      
        	
                 
      

              	
                2.3

              	
                Is
      any underground storage of hazardous materials proposed or currently
      conducted on the premises?  Yes
      (   )   No  (   )

              

      

      

      
        	
                 
      

              	 	
                If
      yes, describe the materials to be stored, and the size and construction of
      the tank.  Attach copies of any permits obtained for the
      underground storage of such
      substances.  ________________________________________________________________________________________________________________________________________________________________________________________________________________________

              

      

      

      
        	
                3.

              	
                HAZARDOUS
      WASTE.  For the purposes of this Survey Form, the term
      “hazardous waste” means any waste (including biological, infectious or
      radioactive waste) considered hazardous under any state or federal law,
      and which is intended to be
discarded.

              

      

      

      
        	
                 
      

              	
                3.1

              	
                List
      any hazardous waste generated or to be generated on the premises, and
      indicate the quantity generated on a monthly
  basis.

              

      

      

      
        	 	
                Location
      and Method

              

      

      
        	
                 
      

              	 	
                Hazardous
      Materials

              	
                 of
      Storage

              	
                 Quantity

              

      

      

      

      
        	
                 
      

              	 	
                __________________

              	
                __________________

              	
                __________________

              

      

      
        	
                 
      

              	 	
                __________________

              	
                __________________

              	
                __________________

              

      

      
        	
                 
      

              	 	
                __________________

              	
                __________________

              	
                __________________

              

      

      
        	
                 
      

              	 	
                __________________

              	
                __________________

              	
                __________________

              

      

      

      
        	
                 
      

              	
                3.2

              	
                Describe
      the method(s) of disposal (including recycling) for each
      waste.  Indicate where and how often disposal will take
      place.

              

      

      

      
        	 	
                Location
      and Method

              

      

      
        	
                 
      

              	 	
                Hazardous
      Materials

              	
                 of
      Storage

              	
                 Disposal
      Method

              

      

      

      
        	
                 
      

              	 	
                __________________

              	
                __________________

              	
                __________________

              

      

      
        	
                 
      

              	 	
                __________________

              	
                __________________

              	
                __________________

              

      

      
        	
                 
      

              	 	
                __________________

              	
                __________________

              	
                __________________

              

      

      
        	
                 
      

              	 	
                __________________

              	
                __________________

              	
                __________________

              

      

      

      
        	
                 
      

              	
                3.3

              	
                Is
      any treatment or processing of hazardous, infectious or radioactive wastes
      currently conducted or proposed to be conducted on the
      premise?

              

      

      Yes
(   )   No  (   )

      

      If yes,
please describe any existing or proposed treatment methods.
________________________________________________________________________________________________________________________________________________________________________________________________________________________

      

      
        	 	
                3.4

              	
                Attach
      copies of any hazardous waste permits or licenses issued to your company
      with respect to its operations on the
premises.

              

      

      

      
        
          
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2005 

            701423328v1

          

           

        

        
          
          

          
            

          

        

        
           

        

      

      
        	
                4.

              	
                SPILLS

              

      

      

      
        	 	
                4.1

              	
                During
      the past year, have any spills or releases of hazardous materials occurred
      on the premises?

              	
                Yes   (   )

              	
                No  (   )

              

      

      

      
        	 	
                If
      so, please describe the spill and attach the results of any testing
      conducted to determine the extent of such spills.
      ________________________________________________________________________________________________________________________________________________

              

      

      
        	 	
                ________________________________________________________________________

              

      

      

      
        	 	
                4.2

              	
                Were
      any agencies notified in connection with such spills?

              	
                Yes   (   )

              	
                No
      (   )

              

      

      

      
        	 	
                If
      so, attach copies of any spill reports or other correspondence with
      regulatory agencies.

              

      

      

      
        	 	
                4.3

              	
                Were
      any clean-up actions undertaken in connection with the
    spills?

              

      

      
        	 	
                Yes   (   )

              	
                No   (   )

              

      

      

      
        	 	
                If
      so, briefly describe the actions taken.  Attach copies of any
      clearance letters obtained from any regulatory agencies involved and the
      results of any final soil or groundwater sampling done upon completion of
      the clean-up
      work.  ________________________________________________________________________________________________________________________________________________

              

      

      
        	 	
                ________________________________________________________________________

              

      

      

      
        	
                5.

              	
                WASTEWATER
      TREATMENT/DISCHARGE

              

      

      

      
        	 	
                5.1

              	
                Do
      you discharge industrial wastewater
to:

              

      

      

      
        	 	
                _____storm
      drain?

              	
                _____sewer?

              

      

      
        	 	
                _____surface
      water?

              	
                _____no
      industrial discharge

              

      

      

      
        	 	
                5.2

              	
                Is
      your industrial wastewater treated before discharge?

              	
                Yes   (   )   No   (   )

              

      

      

      
        	 	
                If
      yes, describe the type of treatment conducted.
      ________________________________________________________________________________________________________________________________________________

              

      

      
        	 	
                ________________________________________________________________________

              

      

      

      5.3           Attach
copies of any wastewater discharge permits issued to your company with respect
to its operations on the premises.

      

      6.           AIR
DISCHARGES.

      

                 6.1           Do
you have any air filtration systems or stacks that discharge into the
air?

                            Yes   (   )                      No   (   )

      

                 6.2           Do
you operate any equipment that require air emissions permits?

                            Yes   (   )                      No   (   )

      

                 6.3           Attach
copies of any air discharge permits pertaining to these operations.

      

      7.           HAZARDOUS MATERIALS
DISCLOSURES.

      

      
        	 	
                7.1

              	
                Does
      your company handle an aggregate of at least 500 pounds, 55 gallons or 200
      cubic feet of hazardous material at any given
      time?   Yes   (   )

              	
                No   (   )

              

      

      

      
        	 	
                7.2

              	
                Has
      your company prepared a Hazardous Materials Disclosure – Chemical
      Inventory and Business Emergency Plan or similar disclosure document
      pursuant to state or county requirements?

              	
                Yes   (   )

              	
                No   (   )

              

      

      

      
        	 	
                If
      so, attach a copy.

              

      

      

      
        
          
            May 5,
2005 

            701423328v1

          

           

        

        
          
          

          
            

          

        

        
           

        

      

      
        	 	
                7.3

              	
                Are
      any of the chemicals used in your operations regulated under Proposition
      65?

              

      

      

      
        	 	
                If
      so, describe the procedures followed to comply with these requirements.
      ________________________________________________________________________________________________________________________________________________________________________________________________________________________

              

      

      

      
        	 	
                7.4

              	
                Is
      your company subject to OSHA Hazard Communication Standard
      Requirements?

              	
                Yes   (   )

              	
                No   (   )

              

      

      

      
        	 	
                If
      so, describe the procedures followed to comply with these
      requirements.  ________________________________________________________________________________________________________________________________________________

              

      

      
        	 	
                ________________________________________________________________________

              

      

      

      
        	
                8.

              	
                ANIMAL
      TESTING.

              

      

      

      
        	 	
                8.1

              	
                Does
      your company bring or intend to bring live animals onto the premises for
      research or development purposes?

              	
                Yes   (   )

              	
                No   (   )

              

      

      

      
        	 	
                If
      so, describe the activity.
      ________________________________________________________________________________________________________________________________________________________________________________________________________________________

              

      

      

      
        	 	
                8.2

              	
                Does
      your company bring or intend to bring animal body parts or bodily fluids
      onto the premises for research or development purposes?

              	
                Yes   (   )   No   (   )

              

      

      

      
        	 	
                If
      so, describe the activity.
      ________________________________________________________________________________________________________________________________________________

              

      

      
        	 	
                ________________________________________________________________________

              

      

      

      
        	
                9.

              	
                ENFORCEMENT ACTIONS,
      COMPLAINTS.

              

      

      

      
        	 	
                9.1

              	
                Has
      your company ever been subject to any agency enforcement actions,
      administrative orders, lawsuits, or consent orders/decrees regarding
      environmental compliance or health and safety?

              	
                Yes   (   )

              	
                No   (   )

              

      

      

      
        	 	
                If
      so, describe the actions and any continuing obligations imposed as a
      result of these actions.
      ________________________________________________________________________________________________________________________________________________________________________________________________________________________

              

      

      

      
        	 	
                9.2

              	
                Has
      your company ever received any request for information, notice of
      violation or demand letter, complaint, or inquiry regarding environmental
      compliance or health and safety?

              	
                Yes   (   )

              	
                No   (   )

              

      

      

      

      9.3           Has
an environmental audit ever been conducted which concerned operations or
activities on premises occupied by
you?Yes   (   )No   (   )

      

      
        
          
            May 5,
2005 

            701423328v1

          

           

        

        
          
          

          
            

          

        

        
           

        

      

      9.4           If
you answered “yes” to any questions in this section, describe the environmental
action or complaint and any continuing compliance obligation imposed as a result
of the
same.  ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

      

      
        	 	
                ____________________________________

              

      

      
        	 	
                ____________________________________

              

      

      

      
        	
                 
      

              	 

      

      

                                                            By:  ________________________________

      
        	 	
                Name:  _______________________

              

      

      
        	 	
                Title:  ________________________

              

      

      
        	 	
                Date:
      _________________________

              

      

      

      

      

      

      

      
        
          
            May 5,
2005 

            701423328v1

          

           

        

        
          
          

          
            

          

        

        
           

        

      

      EXHIBIT
C

      

      LANDLORD’S
DISCLOSURES

      

      

      [Intentionally
left blank]

      

      
        
          
            

            

            May
5, 2005 

            701423328v1

            

          

           

        

        
          
          

          
            

          

        

        
           

        

      

                                                                EXHIBIT
D

      

                                                    TENANT'S
INSURANCE

      

      The
following requirements for Tenant's insurance shall be in effect at the
Building, and Tenant shall also cause any subtenant to comply with these
requirements.  Landlord reserves the right to adopt reasonable
nondiscriminatory modifications and additions to these insurance
requirements.  Tenant agrees to obtain and present evidence to
Landlord that it has fully complied with the insurance
requirements.

      

      1.           Tenant
shall, at its sole cost and expense, commencing on the date Tenant is given
access to the Premises for any purpose and during the entire Term, procure, pay
for and keep in full force and effect:  (i) commercial general
liability insurance with respect to the Premises and the operations of or on
behalf of Tenant in, on or about the Premises, including but not limited to
coverage for personal injury, independent contractors, broad form property
damage, fire and water legal liability, products liability (if a product is sold
from the Premises), and liquor law liability (if alcoholic beverages are sold,
served or consumed within the Premises), which policy(ies) shall be written on
an "occurrence" basis and for not less than the amount set forth in Item 13
of the Basic Lease Provisions, with a combined single limit (with a $50,000
minimum limit on fire legal liability) per occurrence for bodily injury, death,
and property damage liability, or the current limit of liability carried by
Tenant, whichever is greater, and subject to such increases in amounts as
Landlord may determine from time to time; (ii) workers' compensation insurance
coverage as required by law, together with employers' liability insurance of at
least One Million Dollars ($1,000,000.00); (iii) with respect to Alterations and
the like required or permitted to be made by Tenant under this Lease, builder's
risk insurance, in an amount equal to the replacement cost of the work; (iv)
insurance against fire, vandalism, malicious mischief and such other additional
perils as may be included in a standard "special form" policy, insuring Tenant's
Alterations, trade fixtures, furnishings, equipment and items of personal
property of Tenant located in the Premises, in an amount equal to not less than
ninety percent (90%) of their actual replacement cost (with replacement cost
endorsement); and (v) business interruption insurance in amounts satisfactory to
cover one (1) year of loss.  In no event shall the limits of any
policy be considered as limiting the liability of Tenant under this
Lease.

      

      2.           In
the event Landlord consents to Tenant’s use, generation or storage of Hazardous
Materials on, under or about the Premises pursuant to Section 5.3 of this Lease,
Landlord shall have the continuing right to require Tenant, at Tenant’s sole
cost and expense (provided the same is available for purchase upon commercially
reasonable terms), to purchase insurance specified and approved by Landlord,
with coverage not less than Five Million Dollars ($5,000,000.00), insuring (i)
any Hazardous Materials shall be removed from the Premises, (ii) the Premises
shall be restored to a clean, healthy, safe and sanitary condition, and (iii)
any liability of Tenant, Landlord and Landlord’s officers, directors,
shareholders, agents, employees and representatives, arising from such Hazardous
Materials.

      

      3.           All
policies of insurance required to be carried by Tenant pursuant to this Exhibit D
containing a deductible exceeding Ten Thousand Dollars ($10,000.00) per
occurrence must be approved in writing by Landlord prior to the issuance of such
policy.  Tenant shall be solely responsible for the payment of all
deductibles.

      

      4.           All
policies of insurance required to be carried by Tenant pursuant to this Exhibit D shall be
written by responsible insurance companies authorized to do business in the
State of California and with a general policyholder rating of not less than "A-"
and financial rating of not less than “VII” in the most current Best’s Insurance
Report.  Any insurance required of Tenant may be furnished by Tenant
under any blanket policy carried by it or under a separate policy.  A
true and exact copy of each paid up policy evidencing the insurance
(appropriately authenticated by the insurer) or a certificate of insurance,
certifying that the policy has been issued, provides the coverage required by
this Exhibit D
and contains the required provisions, together with endorsements acceptable to
Landlord evidencing the waiver of subrogation and additional insured provisions
required below, shall be delivered to Landlord prior to the date Tenant is given
the right of possession of the Premises.  Proper evidence of the
renewal of any insurance coverage shall also be delivered to Landlord no more
than five (5) business days after renewal of the coverage.  Landlord
may at any time, and from time to time, inspect and/or copy any and all
insurance policies required by this Lease.

      

      5.           Each
policy evidencing insurance required to be carried by Tenant pursuant to this
Exhibit D
shall contain the following provisions and/or clauses satisfactory to
Landlord:  (i) with respect to Tenant’s commercial general liability
insurance, a provision that the policy and the coverage provided shall be
primary and that any coverage carried by Landlord shall be noncontributory with
respect to any policies carried by Tenant, together with a provision including
Landlord, the Additional Insureds identified in Item 11 of the Basic Lease
Provisions, and any other parties in interest designated by Landlord, as
additional insureds; (ii) except with respect to Tenant’s commercial general
liability insurance, a waiver by the insurer of any right to subrogation against
Landlord, its agents, employees, contractors and representatives which arises or
might arise by reason of any payment under the policy or by reason of any act or
omission of Landlord, its agents, employees, contractors or representatives; and
(iii) a provision that the insurer will not cancel or not renew the coverage
provided by the policy without first giving Landlord at least ten (10) days
prior written notice.

      

      6.           In
the event that Tenant fails to procure, maintain and/or pay for, at the times
and for the durations specified in this Exhibit D, any
insurance required by this Exhibit D, or fails
to carry insurance required by any governmental authority, Landlord may at its
election procure that insurance and pay the premiums, in which
event

      
        
          
            

            May 5,
2005 

            701423328v1

            

             
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      Tenant
shall repay Landlord all sums paid by Landlord, together with interest at the
maximum rate permitted by law and any related costs or expenses incurred by
Landlord, within ten (10) days following Landlord's written demand to
Tenant.

      

                 NOTICE
TO TENANT:  IN ACCORDANCE WITH THE TERMS OF THIS LEASE, TENANT MUST
PROVIDE EVIDENCE OF THE REQUIRED INSURANCE TO LANDLORD’S MANAGEMENTAGENT PRIOR
TO BEING AFFORDED ACCESS TO THE PREMISES.

      

      
        
          
            

            May 5,
2005 

            701423328v1

            

             
701423328v1 

          

           

        

        
          
          

          
            

          

        

        
           

        

      

                                                                EXHIBIT
E

       

      RULES
AND REGULATIONS

      

      This
Exhibit sets forth the rules and regulations governing Tenant's use of the
Premises leased to Tenant pursuant to the terms, covenants and conditions of the
Lease to which this Exhibit is attached and therein made part
thereof.  In the event of any conflict or inconsistency between this
Exhibit and the Lease, the Lease shall control.

      

                 1.           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.

      

                 2.           The
walls, walkways, sidewalks, entrance passages, elevators, stairwells, courts and
vestibules shall not be obstructed or used for any purpose other than ingress
and egress of pedestrian travel to and from the Premises, and shall not be used
for smoking, loitering or gathering, or to display, store or place any
merchandise, equipment or devices, or for any other purpose.  The
walkways, sidewalks, entrance passageways, courts, vestibules and roof are not
for the use of the general public and Landlord shall in all cases retain the
right to control and prevent access thereto by all persons whose presence in the
judgment of the Landlord shall be prejudicial to the safety, character,
reputation and interests of the Building and its tenants, provided that nothing
herein contained shall be construed to prevent such access to persons with whom
Tenant normally deals in the ordinary course of Tenant's business unless such
persons are engaged in illegal activities.  Smoking is permitted
outside the building and within the project only in areas designated by
Landlord.  No tenant or employee or invitee or agent of any tenant
shall be permitted upon the roof of the Building without prior written approval
from Landlord.

      

                 3.           No
awnings or other projection shall be attached to the outside walls of the
Building.  No security bars or gates, curtains, blinds, shades or
screens shall be attached to or hung in, or used in connection with, any window
or door of the Premises without the prior written consent of
Landlord.  Neither the interior nor exterior of any windows shall be
coated or otherwise sunscreened without the express written consent of
Landlord.

      

                 4.           Tenant
shall not mark, nail, paint, drill into, or in any way deface any part of the
Premises or the Building except to affix standard pictures or other wall
hangings on the interior walls of the premises so long as they are not visible
from the exterior of the building.  Tenant shall not lay linoleum,
tile, carpet or other similar floor covering so that the same shall be affixed
to the floor of the Premises in any manner except as approved by Landlord in
writing.  The expense of repairing any damage resulting from a
violation of this rule or removal of any floor covering shall be borne by
Tenant.

      

      5.           The
toilet rooms, urinals, wash bowls and other plumbing apparatus shall not be used
for any purpose other than that for which they were constructed and no foreign
substance of any kind whatsoever shall be thrown therein.  Any pipes
or tubing used by Tenant to transmit water to an appliance or device in the
Premises must be made of copper or stainless steel, and in no event shall
plastic tubing be used for that purpose.  The expense of any breakage,
stoppage or damage resulting from the violation of this rule shall be borne by
the tenant who, or whose employees or invitees, caused it.

      

                 6.           Landlord
shall direct electricians as to the manner and location of any future telephone
wiring.  No boring or cutting for wires will be allowed without the
prior consent of Landlord.  The locations of the telephones, call
boxes and other office equipment affixed to the Premises shall be subject to the
prior written approval of Landlord.

      

                 7.           The
Premises shall not be used for manufacturing or for the storage of merchandise
except as such storage may be incidental to the permitted use of the
Premises.  No exterior storage shall be allowed at any time without
the prior written approval of Landlord.  The Premises shall not be
used for cooking or washing clothes without the prior written consent of
Landlord, or for lodging or sleeping or for any immoral or illegal
purposes.

      

                 8.           Tenant
shall not make, or permit to be made, any unseemly or disturbing noises 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, noise, or otherwise.  Tenant shall not
use, keep or permit to be used, or kept, any foul or obnoxious gas or substance
in the Premises or permit or suffer the Premises to be used or occupied in any
manner offensive or objectionable to Landlord or other occupants of this or
neighboring buildings or premises by reason of any odors, fumes or
gases.

      

                 9.           No
animals, except for seeing eye dogs, shall be permitted at any time within the
Premises.

      

                 10.           Tenant
shall not use the name of the Building or the Project in connection with or in
promoting or advertising the business of Tenant, except as Tenant's address,
without the written consent of Landlord.  Landlord shall have the
right to prohibit any advertising by any Tenant which, in Landlord's reasonable
opinion, tends to impair the reputation of the Project or its desirability for
its intended uses, and upon written notice from Landlord any Tenant shall
refrain from or discontinue such advertising.

      

      11.           Canvassing,
soliciting, peddling, parading, picketing, demonstrating or otherwise engaging
in any conduct that unreasonably impairs the value or use of the Premises or the
Project are prohibited and each Tenant shall cooperate to prevent the
same.  Landlord shall have full and absolute authority to regulate or
prohibit the entrance to the Premises of any vendor, supplier, purveyor,
petitioner, proselytizer or other similar person if, in the good faith judgment
of Landlord, such person will be involved in general solicitation activities, or
the proselytizing, petitioning, or disturbance of other tenants or their
customers or invitees, or engaged or likely to engage in conduct which may in
Landlord’s opinion distract from the use of the Premises for its intended
purpose.  Notwithstanding the foregoing, Landlord reserves the
absolute right and discretion to limit or prevent access to the Buildings by
any

      
        
          
            

            701423328v1

          

           

        

        
          
          

          
            

          

        

        
           

        

      

      food or
beverage vendor, whether or not invited by Tenant, and Landlord may condition
such access upon the vendor’s execution of an entry permit agreement which may
contain provisions for insurance coverage and/or the payment of a fee to
Landlord.

      

                 12.           No
equipment of any type shall be placed on the Premises which in Landlord's
opinion exceeds the load limits of the floor or otherwise threatens the
soundness of the structure or improvements of the Building.

      

                 13.           Regular
building hours of operation are from 6:00 AM to 6:00 PM Monday through Friday
and 9:00 AM to 1:00 PM on Saturday.  No air conditioning unit or other
similar apparatus shall be installed or used by any Tenant without the prior
written consent of Landlord.

      

                 14.           The
entire Premises, including vestibules, entrances, parking areas, doors,
fixtures, windows and plate glass, shall at all times be maintained in a safe,
neat and clean condition by Tenant.  All trash, refuse and waste
materials shall be regularly removed from the Premises by Tenant and placed in
the containers at the locations designated by Landlord for refuse
collection.  All cardboard boxes must be "broken down" prior to being
placed in the trash container.  All styrofoam chips must be bagged or
otherwise contained prior to placement in the trash container, so as not to
constitute a nuisance.  Pallets must be immediately disposed of by
tenant and may not be disposed of in the Landlord provided trash container or
enclosures.  Pallets may be neatly stacked in an exterior location on
a temporary basis (no longer than 5 days) so long as Landlord has provided prior
written approval.  The burning of trash, refuse or waste materials is
prohibited.

      

                 15.           Tenant
shall use at Tenant's cost such pest extermination contractor as Landlord may
direct and at such intervals as Landlord may require.

      

                 16.           All
keys for the Premises shall be provided to Tenant by Landlord and Tenant shall
return to Landlord any of such keys so provided upon the termination of the
Lease.  Tenant shall not change locks or install other locks on doors
of the Premises, without the prior written consent of Landlord.  In
the event of loss of any keys furnished by Landlord for Tenant, Tenant shall pay
to Landlord the costs thereof.  Upon the termination of its tenancy,
Tenant shall deliver to Landlord all the keys to lobby(s), suite(s) and
telephone & electrical room(s) which have been furnished to Tenant or which
Tenant shall have had made.

      

      17.           No
person shall enter or remain within the Project while intoxicated or under the
influence of liquor or drugs.  Landlord shall have the right to
exclude or expel from the Project any person who, in the absolute discretion of
Landlord, is under the influence of liquor or drugs.

      

                 18.           The
moving of large or heavy objects shall occur only between those hours as may be
designated by, and only upon previous written notice to, Landlord, and the
persons employed to move those objects in or out of the Building must be
reasonably acceptable to Landlord.  Without limiting the generality of
the foregoing, no freight, furniture or bulky matter of any description shall be
received into or moved out of the lobby of the Building or carried in the
elevator.

      

      19.           Tenant
shall not install equipment, such as but not limited to electronic tabulating or
computer equipment, requiring electrical or air conditioning service in excess
of that to be provided by Landlord under the Lease without prior written consent
of Landlord.

      

      20.           Landlord
may from time to time grant other tenants of the project individual and
temporary variances from these Rules, provided that any variance does not have a
material adverse effect on the use and enjoyment of the Premises by
Tenant.

      

      21.           Landlord
reserves the right to amend or supplement the foregoing Rules and Regulations
and to adopt and promulgate additional rules and regulations applicable to the
Premises.  Notice of such rules and regulations and amendments and
supplements thereto, if any, shall be given to the Tenant.

      

      
        
          
            

            701423328v1

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