Document:

ex10-3.htm

Exhibit 10.3

 

 Execution Version

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”) is made and entered into as of February __, 2011 by and among Augme Technologies, Inc., a Delaware corporation (the “Company”), and the several purchasers signatory hereto (each a “Purchaser” and collectively, the “Purchasers”).

 

This Agreement is made pursuant to the Securities Purchase Agreement, dated February __, 2011 between the Company and each Purchaser (the “Purchase Agreement”).

 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and each of the Purchasers agree as follows:

 

1. Definitions.  Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement.  As used in this Agreement, the following terms shall have the following meanings:

 

“Advice” has the meaning set forth in Section 6(d).

 

“Agreement” has the meaning set forth in the Preamble.

 

“Company” has the meaning set forth in the Preamble.

 

“Effective Date” means the date that the Registration Statement filed pursuant to Section 2(a) is first declared effective by the Commission.

 

“Effectiveness Deadline” means, with respect to the Initial Registration Statement or the New Registration Statement, the ninetieth (90th) calendar day following the Closing Date (or, in the event the Commission reviews and has written comments to the Initial Registration Statement or the New Registration Statement, the one hundred twentieth (120th) calendar day following the Closing Date); provided, however, that if the Company is notified by the Commission that the Initial Registration Statement or the New Registration Statement will not be reviewed or is no longer subject to further review and comments, the Effectiveness Deadline as to such Registration Statement shall be the fifth (5th) Trading Day following the date on which the Company is so notified if such date precedes the dates otherwise required above; provided, further, that if the Effectiveness Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Effectiveness Deadline shall be extended to the next Business Day on which the Commission is open for business.

 

“Effectiveness Period” has the meaning set forth in Section 2(b).

 

“Event” has the meaning set forth in Section 2(c).

 

“Event Date” has the meaning set forth in Section 2(c).

 

  

  

  

“Filing Deadline” means, with respect to the Initial Registration Statement required to be filed pursuant to Section 2(a), the thirtieth (30th) calendar day following the Closing Date, provided, however, that if the Filing Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Filing Deadline shall be extended to the next business day on which the Commission is open for business.

 

“FINRA” has the meaning set forth in Section 3(i).

 

“Holder” or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified Party” has the meaning set forth in Section 5(c).

 

“Indemnifying Party” has the meaning set forth in Section 5(c).

 

“Initial Registration Statement” has the meaning set forth in Section 2(a).

 

“Liquidated Damages” has the meaning set forth in Section 2(c).

 

“Losses” has the meaning set forth in Section 5(a).

 

“New Registration Statement” has the meaning set forth in Section 2(a).

 

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

“Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

 

“Purchase Agreement” has the meaning set forth in the Recitals.

 

“Purchaser” or “Purchasers” has the meaning set forth in the Preamble.

 

“Registrable Securities” means all of (i) the Shares, (ii) the Warrant Shares and (iii) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing, provided, that the Holder has completed and delivered to the Company a Selling Stockholder Questionnaire and provided to the Company any other information regarding the Holder and the distribution of the Registrable Securities as the Company may, from time to time, reasonably require for inclusion in a Registration Statement pursuant to applicable law; and provided, further, that with respect to a particular Holder, such Holder’s Shares and Warrant Shares shall cease to be Registrable Securities upon the earliest to occur of the following: (A) a sale pursuant to a Registration Statement or Rule 144 under the Securities Act (in which case, only such security sold by the Holder shall cease to be a Registrable Security); or (B) becoming eligible for resale by the Holder under Rule 144 without the requirement for the Company to be in compliance with the current public information required thereunder and without volume or manner-of-sale restrictions, pursuant to a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent.

 

  

  

  

“Registration Statements” means any one or more registration statements of the Company filed under the Securities Act that covers the resale of any of the Registrable Securities pursuant to the provisions of this Agreement (including without limitation the Initial Registration Statement, the New Registration Statement and any Remainder Registration Statements), amendments and supplements to such Registration Statements, including post-effective amendments, all exhibits and all material incorporated by reference or deemed to be incorporated by reference in such Registration Statements.

 

“Remainder Registration Statement” has the meaning set forth in Section 2(a).

 

“Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

 

“SEC Guidance” means (i) any publicly-available written or oral guidance, comments, requirements or requests of the Commission staff and (ii) the Securities Act.

 

“Selling Stockholder Questionnaire” means a questionnaire in the form attached as Annex B hereto, or such other form of questionnaire as may reasonably be adopted by the Company from time to time.

 

“Shares” means the shares of Common Stock issued or issuable to the Purchasers pursuant to the Purchase Agreement.

 

“Warrants” means the Warrants issued to the Purchasers pursuant to the Purchase Agreement.

 

“Warrant Shares” means the Warrant Shares issued or issuable upon exercise of the Warrants.

 

  

  

  

2. Registration.

 

(a) On or prior to the Filing Deadline, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all of the Registrable Securities not already covered by an existing and effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415 or, if Rule 415 is not available for offers and sales of the Registrable Securities, by such other means of distribution of Registrable Securities as the Holders may reasonably specify (the “Initial Registration Statement”).  The Initial Registration Statement shall be on Form S-3 (except if the Company is then ineligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on such other form available to register for resale the Registrable Securities as a secondary offering) subject to the provisions of Section 2(e) and shall contain (except if otherwise required pursuant to written comments received from the Commission upon a review of such Registration Statement) the “Plan of Distribution” section attached hereto as Annex A (which may be modified to respond to comments, if any, provided by the Commission or to reflect any non-material changes).  Notwithstanding the registration obligations set forth in this Section 2, if the Commission informs the Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration statement, the Company agrees to promptly (i) inform each of the holders thereof and use its commercially reasonable efforts to file amendments to the Initial Registration Statement as required by the Commission and/or (ii) withdraw the Initial Registration Statement and file a new registration statement (a “New Registration Statement”), in either case covering the maximum number of Registrable Securities permitted to be registered by the Commission, on Form S-3 or such other form available to register for resale the Registrable Securities as a secondary offering. Notwithstanding any other provision of this Agreement and subject to the payment of Liquidated Damages in Section 2(c), if applicable, if the Commission or any SEC Guidance sets forth a limitation of the number of Registrable Securities permitted to be registered on a particular Registration Statement as a secondary offering, unless otherwise directed in writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered on such Registration Statement will first be reduced by Registrable Securities represented by holders of Warrant Shares (applied, in the case that some Warrant Shares may be registered, to the Holders on a pro rata basis based on the total number of unregistered Warrant Shares held by such Holders) and second by Registrable Securities represented by Shares (applied, in the case that some Shares may be registered, to the Holders on a pro rata basis based on the total number of unregistered Shares held by such Holders, subject to a determination by the Commission that certain Holders must be reduced first based on the number of Shares held by such Holders).  If the Company amends the Initial Registration Statement or files a New Registration Statement, as the case may be, under clauses (i) or (ii) above, the Company will use its commercially reasonable efforts to file with the Commission, as promptly as allowed by the Commission or SEC Guidance provided to the Company, one or more registration statements on Form S-3 or such other form available to register for resale those Registrable Securities that were not registered for resale on the Initial Registration Statement, as amended, or the New Registration Statement (the “Remainder Registration Statements”).

 

(b) The Company shall use its commercially reasonable efforts to cause each Registration Statement to be declared effective by the Commission as soon as practicable and, with respect to the Initial Registration Statement or the New Registration Statement, as applicable, no later than the Effectiveness Deadline (including filing with the Commission a request for acceleration of effectiveness in accordance with Rule 461 promulgated under the Securities Act), and shall use its commercially reasonable efforts to keep each Registration Statement continuously effective under the Securities Act until the earliest of (i) such time as all of the Registrable Securities covered by such Registration Statement have been sold by the Holders; (ii) the date that all the Shares, the Warrant Shares and any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing cease to be Registrable Securities; and (iii) the second anniversary of the Closing Date (provided, however, that such two-year period will be extended for a period of time equal to the period any Purchaser is required to suspend sales of such Registrable Securities pursuant to the terms of this Agreement) (the “Effectiveness Period”).  The Company shall promptly notify the Holders via facsimile or electronic mail of a “.pdf” format data file of the effectiveness of a Registration Statement on the same Trading Day that the Company telephonically confirms effectiveness with the Commission.  The Company shall, by 9:30 A.M.  New York City time on the first Trading Day after the Effective Date, file a final Prospectus with the Commission, as required by Rule 424(b).  Failure to so notify the Holders on or before the second Trading Day after such notification of effectiveness or failure to file a final Prospectus as aforesaid shall be deemed an Event under Section 2(c).

 

  

  

  

(c) Subject to the provisions of Sections 3(a), 3(h) and 3(i), if (i) the Initial Registration Statement is not filed with the Commission on or prior to the Filing Deadline, (ii) the Initial Registration Statement or the New Registration Statement, as applicable, is not declared effective by the Commission (or otherwise does not become effective) for any reason on or prior to the Effectiveness Deadline (iii) after its Effective Date, (A) such Registration Statement ceases for any reason (including without limitation by reason of a stop order, or the Company’s failure to update the Registration Statement), to remain continuously effective as to all Registrable Securities included in such Registration Statement or (B) the Holders are not permitted to utilize the Prospectus therein to resell such Registrable Securities for any reason for more than an aggregate of fifteen (15) consecutive calendar days (or forty-five (45) consecutive calendar days if the Company receives comments on its Annual Report on Form 10-K for the year ended February 28, 2011) or thirty (30) calendar days (which need not be consecutive days) during any twelve (12) month period or (iv) the Company shall fail to remain current in its reporting requirements with the SEC during the twelve month period commencing on the Closing Date,  (any such failure or breach in clauses (i) through (iv) above being referred to as an “Event,” and, for purposes of clauses (i), (ii) or (iv), the date on which such Event occurs, or for purposes of clause (iii), the date on which such fifteen (15), forty-five (45) or thirty (30) calendar day period is exceeded, being referred to as an “Event Date”), then, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the earlier of (1) the applicable Event is cured and (2) the Registrable Securities are eligible for resale pursuant to Rule 144 without manner of sale or volume restrictions, the Company shall pay to each Holder an amount in cash, as liquidated damages and not as a penalty (“Liquidated Damages”), equal to one percent (1.0%) of the aggregate purchase price paid by such Holder pursuant to the Purchase Agreement for any unregistered Registrable Securities then held by such Holder (which remedy shall be exclusive of any other remedies available under this Agreement or under applicable law).  The parties agree that (1)  notwithstanding anything to the contrary herein or in the Purchase Agreement, no Liquidated Damages shall be payable with respect to any period after the expiration of the Effectiveness Period (except in respect of an Event described in Section 2(c)(iv) herein), (it being understood that this sentence shall not relieve the Company of any Liquidated Damages accruing prior to the Effectiveness Deadline) and (2) in no event shall the Company be liable in any thirty (30) day period for Liquidated Damages under this Agreement in excess of one percent (1.0%) of the aggregate purchase price paid by the Holders pursuant to the Purchase Agreement, except in the case of a payment made on an Event Date and the monthly anniversary of such Event Date.  If the Company fails to pay any Liquidated Damages pursuant to this Section 2(c) in full within ten (10) Business Days after the date payable, the Company will pay simple interest thereon at a rate of fifteen percent (15.0%) per year (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such Liquidated Damages are due until such amounts, plus all such interest thereon, are paid in full.  The Liquidated Damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event, except in the case of the first Event Date.  The Company shall not be liable for Liquidated Damages under this Agreement as to any Registrable Securities which are not permitted by the Commission to be included in a Registration Statement due solely to SEC Guidance from the time that it is determined that such Registrable Securities are not permitted to be registered until such time as the provisions of this Agreement as to the Remainder Registration Statements required to be filed hereunder are triggered, in which case the provisions of this Section 2(c) shall once again apply, if applicable.  In such case, the Liquidated Damages shall be calculated to only apply to the percentage of Registrable Securities which are permitted in accordance with SEC Guidance to be included in such Registration Statement.  The Effectiveness Deadline for a Registration Statement shall be extended without default or Liquidated Damages hereunder in the event that the Company’s failure to obtain the effectiveness of the Registration Statement on a timely basis results from the failure of a Purchaser to timely provide the Company with information requested by the Company and necessary to complete the Registration Statement in accordance with the requirements of the Securities Act (in which the Effectiveness Deadline would be extended with respect to Registrable Securities held by such Purchaser).

 

(d) Each Holder agrees to furnish to the Company a completed Selling Stockholder Questionnaire not more than three (3) Trading Days following the date of this Agreement.  At least five (5) Trading Days prior to the first anticipated filing date of a Registration Statement for any registration under this Agreement, the Company will notify each Holder of the information the Company requires from that Holder other than the information contained in the Selling Stockholder Questionnaire, if any, which shall be completed and delivered to the Company promptly upon request and, in any event, within three (3) Trading Days prior to the applicable anticipated filing date.  Each Holder further agrees that it shall not be entitled to be named as a selling securityholder in the Registration Statement or use the Prospectus for offers and resales of Registrable Securities at any time, unless such Holder has returned to the Company a completed and signed Selling Stockholder Questionnaire and a response to any reasonable requests for further information as described in the previous sentence.  If a Holder of Registrable Securities returns a Selling Stockholder Questionnaire or a request for further information, in either case, after its respective deadline, the Company shall use its commercially reasonable efforts to take such actions as are required to name such Holder as a selling security holder in the Registration Statement or any pre-effective or post-effective amendment thereto and to include (to the extent not theretofore included) in the Registration Statement the Registrable Securities identified in such late Selling Stockholder Questionnaire or request for further information, provided, however, that the Company shall not be obligated to file more than one post-effective amendment or supplement in any 60-day period following the date such Registration Statement is declared effective for the purpose of naming Holders as selling securityholders who are not named in such Registration Statement at the time of effectiveness. Each Holder acknowledges and agrees that the information in the Selling Stockholder Questionnaire or request for further information as described in this Section 2(d) will be used by the Company in the preparation of the Registration Statement and hereby consents to the inclusion of such information in the Registration Statement.

 

  

  

  

(e) If Form S-3 is not  available for the registration of the resale of Registrable Securities hereunder, the Company shall (i) register the resale of the Registrable Securities on another appropriate form and (ii) undertake to register the Registrable Securities on Form S-3 promptly after such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective by the Commission.  The Holders acknowledge that as of the Closing Date and at the time of the Filing Deadline the Company will not be eligible to use a Form S-3 to register the resale of the Registrable Securities.

 

3. Registration Procedures

 

In connection with the Company’s registration obligations hereunder, the Company shall:

 

(a) Not less than two (2) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior to the filing of any related Prospectus or any amendment or supplement thereto (except for Annual Reports on Form 10-K (including portions of the Company’s Proxy Statement for its Annual Meetings of Stockholders to the extent specifically incorporated by reference into such Annual Reports on Form 10-K), Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any similar or successor reports or any prospectus supplement the substance of which is limited to any of the foregoing filings), (i) furnish to the Holder copies of such Registration Statement, Prospectus or amendment or supplement thereto, as proposed to be filed, which documents will be subject to the review of such Holder (it being acknowledged and agreed that if a Holder does not object to or comment on the aforementioned documents within such two (2) Trading Day or one (1) Trading Day period, as the case may be, then the Holder shall be deemed to have consented to and approved the use of such documents) and (ii) use commercially reasonable efforts to cause its officers and directors, counsel and independent registered public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct a reasonable investigation within the meaning of the Securities Act.  The Company shall not file any Registration Statement or amendment or supplement thereto in a form to which a Holder reasonably objects in good faith, provided that, the Company is notified of such objection in writing within the two (2) Trading Day or one (1) Trading Day period described above, as applicable, and for such period as the Company and such Holder are attempting in good faith to resolve the objection of such Holder, any time period or deadline for purposes of Section 2(c) shall be extended for such period and no Liquidated Damages shall accrue or be payable for such period.

 

 

 

  

  

  

(b) (i) Prepare and file with the Commission such amendments (including post effective amendments) and supplements, to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably practicable to any comments received from the Commission with respect to each Registration Statement or any amendment thereto and, as promptly as reasonably possible, provide the Holders true and complete copies of all correspondence from and to the Commission relating to such Registration Statement that pertains to the Holders as “Selling Stockholders” but not any other comments or any comments that would result in the disclosure to the Holders of material and non-public information concerning the Company; and (iv) comply with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration Statement during the Effectiveness Period (subject to the terms of this Agreement) in accordance with the intended methods of disposition by the Holders thereof as set forth in such Registration Statement as so amended or in such Prospectus as so supplemented; provided, however, that each Purchaser shall be responsible for the delivery of the Prospectus, if required, to the Persons to whom such Purchaser sells any of the Shares or the Warrant Shares (including in accordance with Rule 172 under the Securities Act), and each Purchaser agrees to dispose of Registrable Securities in compliance with the “Plan of Distribution” described in the Registration Statement and otherwise in compliance with applicable federal and state securities laws. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous report under the Exchange Act, the Company shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements with the Commission on the same day on which the Exchange Act report which created the requirement for the Company to amend or supplement such Registration Statement was filed.

 

(c) Notify the Holders (which notice shall, pursuant to clauses (iii) through (vi) hereof, be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably practicable (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing): (i)(A) when a Prospectus or any Prospectus supplement or post effective amendment to a Registration Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on any Registration Statement (in which case the Company shall provide to each of the Holders true and complete copies of all comments that pertain to the Holders as a “Selling Stockholder” or to the “Plan of Distribution” and all written responses thereto, but not any other comments or responses or information that the Company believes would constitute material and non-public information); and (C) with respect to each Registration Statement or any post effective amendment, when the same has become effective; (ii) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to a Registration Statement or Prospectus or for additional information that pertains to the Holders as “Selling Stockholders” or the “Plan of Distribution”; (iii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they were made), not misleading and (vi) of the occurrence or existence of any pending corporate development with respect to the Company that the Company believes may be material and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability of a Registration Statement or Prospectus, provided that, any and all such information shall remain confidential to each Holder until such information otherwise becomes public, unless disclosure by a Holder is required by law; and provided, further, that notwithstanding each Holder’s agreement to keep such information confidential, each such Holder makes no acknowledgement that any such information is material, non-public information.

 

  

  

  

(d) Use commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, as soon as practicable.

 

(e) If requested by a Holder, furnish to such Holder, without charge, at least one conformed copy of each Registration Statement and each amendment thereto and all exhibits to the extent requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission; provided, that the Company shall have no obligation to provide any document pursuant to this clause that is available on the Commission’s EDGAR system; provided further, that the Company shall have no obligation to provide an unredacted form of any exhibit if the Company has filed or the Commission has granted a confidential treatment request with respect to such exhibit.

 

(f) Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from the registration or qualification) of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in any such jurisdiction.

 

 

 

 

 

 

 

 

  

  

  

(g) If requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to (i) the Holder upon effectiveness of a Registration Statement covering the resales of the Shares or (ii) a transferee pursuant to transfers made pursuant to the Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreement and the Warrants and under law, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may reasonably request.

 

(h) Following the occurrence of any event contemplated by Section 3(c), as promptly as reasonably practicable (taking into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature disclosure of such event), prepare a supplement or amendment, including a post effective amendment, to the affected Registration Statements or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, form of prospectus or supplement thereto, in light of the circumstances under which they were made), not misleading.  If the Company notifies the Holders in accordance with clauses (iii) through (vi) of Section 3(c) above to suspend the use of any Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus.  The Company will use its commercially reasonable efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.  The Company shall be entitled to exercise its right under this Section 3(h) to suspend the availability of a Registration statement and Prospectus, without the payment of partial Liquidated Damages otherwise required pursuant to Section 2(c), for periods not to exceed the time periods set forth in Section 2(c)(iii)(B).

 

(i) The Company may require each selling Holder to furnish to the Company a certified statement as to (i) the number of shares of Common Stock beneficially owned by such Holder and any Affiliate thereof, (ii) any Financial Industry Regulatory Authority (“FINRA”) affiliations, (iii) any natural persons who have the power to vote or dispose of the common stock and (iv) any other information as may be requested by the Commission, FINRA or any state securities commission.  During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of Registrable Securities because any Holder fails to furnish such information within three (3) Trading Days of the Company’s request, any Liquidated Damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

 

 

 

 

 

 

  

  

  

(j)           Neither the Company nor any subsidiary or affiliate thereof shall identify any Purchaser as an underwriter in any public disclosure or filing with the Commission or any Trading Market  and any Purchaser being deemed an underwriter by the Commission shall not relieve the Company of any obligations it has under this Agreement or any other Transaction Document; provided, however, that the foregoing shall not prohibit the Company from including the disclosure found in the “Plan of Distribution” section attached hereto in the Registration Statement, provided, further, if any Purchaser is required to be identified as an underwriter by the Commission or the Trading Market, prior to the Company so naming such Purchaser, the Company shall promptly notify such Purchaser and such Purchaser shall be entitled to either (i) agree to be so named, or (ii) withdraw as a selling stockholder with respect to the applicable Registration Statement.  If any such Purchaser refuses to be so named as an underwriter or to withdraw from the applicable Registration Statement, such Purchaser shall not be entitled to any Liquidated Damages or to recover from the Company any other damages or losses caused by such refusal.

 

4. Registration Expenses.  All fees and expenses incident to the Company’s performance of or compliance with its obligations under this Agreement (excluding any underwriting discounts and selling commissions and all legal fees and expenses of legal counsel for any Holder) shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement.  The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed for trading and (B) with respect to compliance with applicable state securities or Blue Sky laws (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment under the laws of such jurisdictions as requested by the Holder), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities), (iii) messenger, telephone and delivery expenses incurred by the Company, (iv) fees and disbursements of counsel for the Company, and (v) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement.  In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder.  In no event shall the Company be responsible for any underwriting, broker or similar fees or commissions of any Holder or any legal fees or other costs of the Holders.

 

5. Indemnification.

 

(a) Indemnification by the Company.  The Company shall, notwithstanding any termination of this Agreement, indemnify, defend and hold harmless each Holder, the officers, directors, agents, partners, members, managers, stockholders, Affiliates and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, partners, members, managers, stockholders, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, expenses, damages, liabilities and costs (including, without limitation, reasonable costs of preparation and investigation and reasonable attorneys’ fees, all of which shall be payable quarterly in arrears as they are incurred) (collectively, “Losses”), that arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, or (ii) any violation or alleged violation by the Company of the Securities Act, Exchange Act or any state securities law or any rule or regulation thereunder, in connection with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (A) such untrue statements, alleged untrue statements, omissions or alleged omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being understood that each Holder has approved Annex A hereto for this purpose) or (B) in the case of an occurrence of an event of the type specified in Section 3(c)(iii)-(vi), related to the use by a Holder of an outdated or defective Prospectus after the Company has notified such Holder that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated and defined in Section 6(d) below, to the extent that following the receipt of the Advice the misstatement or omission giving rise to such Loss would have been corrected or (C) to the extent that any such Losses arise out of the Purchaser’s (or any other indemnified Person’s) failure to send or give a copy of the Prospectus or supplement (as then amended or supplemented), if required, pursuant to Rule 172 under the Securities Act (or any successor rule) to the Persons asserting an untrue statement or alleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Securities to such Person if such statement or omission was corrected in such Prospectus or supplement.  The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the Company is aware.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of an Indemnified Party (as defined in Section 5(c)) and shall survive the transfer of the Registrable Securities by the Holders.

 

  

  

  

(b) Indemnification by Holders.  Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses (all of which shall be payable quarterly in arrears as they are incurred), as incurred, arising out of or are based upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, or any form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading (A) to the extent that such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein or (B) to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and approved in writing by such Holder expressly for use in a Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (C) in the case of an occurrence of an event of the type specified in Section 3(c)(iii)-(vi), to the extent related to the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section 6(d).  In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities.

 

(c) Conduct of Indemnification Proceedings.  If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all reasonable fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, unless such failure materially prejudices the Indemnifying Party.

 

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless:  (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that, in the reasonable judgment of such counsel, representation of both parties by the same counsel would be inappropriate under the applicable rules of professional responsibility (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party); provided, that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys at any time for all Indemnified Parties.  The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed.  No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

  

  

  

Subject to the terms of this Agreement, all fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section 5) shall be paid to the Indemnified Party, quarterly in arrears as they are incurred; provided, that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions for which such Indemnified Party is finally judicially determined to not be entitled to indemnification hereunder).

 

(d) Contribution.  If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.  The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission.  The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section 5 was available to such party in accordance with its terms.

 

The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.  Notwithstanding the provisions of this Section 5(d), (A) no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission and (B) no contribution will be made under circumstances where the maker of such contribution would not have been required to indemnify the Indemnified Party under the fault standards set forth in this Section 5.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

The indemnity and contribution agreements contained in this Section 5 are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties.

 

 

 

  

  

  

6. Miscellaneous.

 

(a) Remedies.  In the event of a breach by the Company or by a Holder of any of their obligations under this Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement.  The Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

 

(b) No Piggyback on Registrations; Prohibition on Filing Other Registration Statements.  Except and to the extent specified in the Schedules to the Purchase Agreement, neither the Company nor any of its security holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company in a Registration Statement other than the Registrable Securities and the Company shall not prior to the Effective Date enter into any agreement providing any such right to any of its security holders.  The Company shall not file with the Commission a registration statement relating to an offering for its own account under the Securities Act of any of its equity securities other than a registration statement on Form S-8 or in connection with an acquisition, on Form S-4 until the earlier of (i) the date that is thirty (30) days after the Initial Registration Statement or New Registration Statement, as the case may be, is declared effective and (ii) the date that all Registrable Securities are eligible for resale by non-affiliates without volume or manner of sale restrictions under Rule 144 and without the requirement for the company to be in compliance with the current public information requirements under Rule 144. For the avoidance of doubt, the Company shall not be prohibited from filing amendments to registration statements filed prior to the date of this Agreement or a registration statement replacing a registration statement filed prior to the date of this Agreement; provided that no such amendment or replacement registration statement shall increase the number of securities registered on a registration statement so previously filed.

 

(c) Compliance.  Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to the Registration Statement and shall sell the Registrable Securities only in accordance with a method of distribution described in the Registration Statement.

 

(d) Discontinued Disposition.  By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section 3(c)(iii)-(vi), such Holder will forthwith discontinue disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed.  The Company will use its commercially reasonable efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.  The Company agrees and acknowledges that any periods during which the Holder is required to discontinue the disposition of the Registrable Securities hereunder shall be subject to the provisions of Section 2(c) and Section 3(h).

 

  

  

  

(e) Amendments and Waivers.  The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, or waived unless the same shall be in writing and signed by the Company and Holders holding no less than two-thirds of the Registrable Securities issued and issuable pursuant to the Securities Purchase Agreement and the Transaction Documents on the Closing Date, provided that any party may give a waiver as to itself.  Notwithstanding the foregoing,  a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders and that does not directly or indirectly affect the rights of other Holders may be given by Holders of all of the Registrable Securities to which such waiver or consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the immediately preceding sentence.

 

(f) Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as set forth in the Purchase Agreement.

 

(g) Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.  The Company may not assign its rights or obligations hereunder (except in connection with a Fundamental Transaction (as defined by the Warrants), provided that the Company is in compliance with the provisions governing Fundamental Transactions set forth in the Warrants,) without the prior written consent of all the Holders of the then outstanding Registrable Securities.  Each Holder may assign its respective rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement; provided in each case that (i) the Holder agrees in writing with the transferee or assignee to assign such rights and related obligations under this Agreement, and for the transferee or assignee to assume such obligations, and a copy of such agreement is furnished to the Company promptly, and in any event within three Business Days, (ii) the Company is promptly, and in any event within three Business Days, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being transferred or assigned, (iii) at or before the time the effectiveness of such transfer or assignment, the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein and (iv) the transferee or assignee is an “accredited investor,” as that term is defined in Rule 501 of Regulation D.

 

(h) Execution and Counterparts.  This Agreement may be executed in two or more counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  If any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature were the original thereof.

 

  

  

  

(i) Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined in accordance with the provisions of the Purchase Agreement.

 

(j) Cumulative Remedies.  Except as provided herein, the remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(k) Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their good faith reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

(l) Headings.  The headings in this Agreement are for convenience only and shall not limit or otherwise affect the meaning hereof.

 

(m) Independent Nature of Purchasers’ Obligations and Rights.  The obligations of each Purchaser under this Agreement are several and not joint with the obligations of any other Purchaser hereunder, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser hereunder.  The decision of each Purchaser to purchase the Securities pursuant to the Purchase Agreement has been made independently of any other Purchaser.  Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert with respect to such obligations or the transactions contemplated by this Agreement.  Each Purchaser acknowledges that no other Purchaser has acted as agent for such Purchaser in connection with making its investment hereunder and that no Purchaser will be acting as agent of such Purchaser in connection with monitoring its investment in the Securities or enforcing its rights under the Transaction Documents.  Each Purchaser shall be entitled to protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined as an additional party in any Proceeding for such purpose.  The Company acknowledges that each of the Purchasers has been provided with the same Registration Rights Agreement for the purpose of closing a transaction with multiple Purchasers and not because it was required or requested to do so by any Purchaser.

 

(n) Termination.  This Agreement shall be automatically terminated with respect to any Holder and shall have no force or effect with respect to such Holder upon the termination of the Purchase Agreement with respect to such Holder (other than such Holder’s obligations under Section 5).  Nothing in this Section 6(n) shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement.

 

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IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

 

	  	
AUGME TECHNOLOGIES, INC.

	  	
By:

	  	
Name: Paul R. Arena

	  	
Title: Chief Executive Officer

 

 

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IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

                    

	  	
NAME OF INVESTING ENTITY

	  	  
	  	
AUTHORIZED SIGNATORY

	  	
By:

	  	
Name:

	  	
Title:

 

 

	  	
ADDRESS FOR NOTICE

	  	
c/o:

	  	
Street:

	  	
City/State/Zip:

	  	
Attention:

	  	
Tel:

	  	
Fax:

	  	
Email:

	  	  

                             

 

 

 

  

  

  

ANNEX A

 

PLAN OF DISTRIBUTION

 

We are registering the shares of common stock issued to the selling stockholders and issuable upon exercise of the warrants issued to the selling stockholders to permit the resale of these shares of common stock by the holders of the shares of common stock and warrants from time to time after the date of this prospectus.  We will not receive any of the proceeds from the sale by the selling stockholders of the shares of common stock.  We will bear all fees and expenses incident to our obligation to register the offer and sale of the shares of common stock.

 

The selling stockholders may sell all or a portion of the shares of common stock beneficially owned by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers or agents.  If the shares of common stock are sold through underwriters or broker-dealers, the selling stockholders will be responsible for underwriting discounts or commissions or agent’s commissions.  The shares of common stock may be sold on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale, in the over-the-counter market or in transactions otherwise than on these exchanges or systems or in the over-the-counter market and in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices.  These sales may be effected in transactions, which may involve crosses or block transactions.  The selling stockholders may use any one or more of the following methods when selling shares:

 

	
·  

	
ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

	
·  

	
block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

 

	
·  

	
purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

	
·  

	
an exchange distribution in accordance with the rules of the applicable exchange;

 

	
·  

	
privately-negotiated transactions;

 

	
·  

	
settlement of short sales entered into after the effective date of the registration statement of which this prospectus is a part;

 

	
·  

	
broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;

 

	
·  

	
through the writing or settlement of options or other hedging transactions, whether such options are listed on an options exchange or otherwise;

 

	
·  

	
a combination of any such methods of sale; and

 

	
·  

	
any other method permitted pursuant to applicable law.

 

  

  

  

The selling stockholders also may resell all or a portion of the shares in open market transactions in reliance upon Rule 144 under the Securities Act, as permitted by that rule, or Section 4(1) under the Securities Act, if available, rather than under this prospectus, provided that they meet the criteria and conform to the requirements of those provisions.

 

Broker dealers engaged by the selling stockholders may arrange for other broker dealers to participate in sales.  If the selling stockholders effect such transactions by selling shares of common stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling stockholders or commissions from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as principal.  Such commissions will be in amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction will not be in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with FINRA IM-2440.

 

In connection with sales of the shares of common stock or otherwise, the selling stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the shares of common stock in the course of hedging in positions they assume.  The selling stockholders may also sell shares of common stock short and deliver shares of common stock covered by this prospectus to close out short positions and to return borrowed shares in connection with such short sales.  The selling stockholders may also loan or pledge shares of common stock to broker-dealers that in turn may sell such shares, to the extent permitted by applicable law.  The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

 

The selling stockholders may, from time to time, pledge or grant a security interest in some or all of the warrants or shares of common stock owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act, amending, if necessary, the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus.  The selling stockholders also may transfer and donate the shares of common stock in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

The selling stockholders and any broker-dealer or agents participating in the distribution of the shares of common stock may be deemed to be “underwriters” within the meaning of Section 2(11) of the Securities Act in connection with such sales and in which case may be subject to certain statutory liabilities under the Exchange Act.

 

 

  

  

  

The selling stockholders will be subject to the applicable prospectus delivery requirements of the Securities Act unless subject to an exemption therefrom, including under Rule 172 thereunder.

 

Each selling stockholder has informed us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the common stock.  Upon our being notified in writing by a selling stockholder that any material arrangement has been entered into with a broker-dealer for the sale of common stock through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer, a supplement to this prospectus will be filed, if required, pursuant to Rule 424(b) under the Securities Act, disclosing (i) the name of each such selling stockholder and of the participating broker-dealer(s), (ii) the number of shares involved, (iii) the price at which such the shares of common stock were sold, (iv) the commissions paid or discounts or concessions allowed to such broker-dealer(s), where applicable, (v) that such broker-dealer(s) did not conduct any investigation to verify the information set out or incorporated by reference in this prospectus, and (vi) other facts material to the transaction.  In no event shall any broker-dealer receive fees, commissions and markups, which, in the aggregate, would exceed 8.0%.

 

Under the securities laws of some states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers.  In addition, in some states the shares of common stock may not be sold unless such shares have been registered or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.

 

There can be no assurance that any selling stockholder will sell any or all of the shares of common stock registered pursuant to the registration statement, of which this prospectus forms a part.

 

Each selling stockholder and any other person participating in such distribution will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing of purchases and sales of any of the shares of common stock by the selling stockholder and any other participating person.  To the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common stock to engage in market-making activities with respect to the shares of common stock.  All of the foregoing may affect the marketability of the shares of common stock and the ability of any person or entity to engage in market-making activities with respect to the shares of common stock.

 

We will pay all expenses of the registration of the shares of common stock pursuant to the registration rights agreement, including, without limitation, SEC filing fees and expenses of compliance with state securities or “blue sky” laws; provided, however, that each selling stockholder will pay all underwriting discounts and selling commissions, if any and any related legal expenses incurred by it.  We will indemnify the selling stockholders against certain liabilities, including some liabilities under the Securities Act, in accordance with the registration rights agreement, or the selling stockholders will be entitled to contribution.  We may be indemnified by the selling stockholders against civil liabilities, including liabilities under the Securities Act, that may arise from any written information furnished to us by the selling stockholders specifically for use in this prospectus, in accordance with the related registration rights agreement, or we may be entitled to contribution.

  

  

  

ANNEX B

 

SELLING STOCKHOLDER NOTICE AND QUESTIONNAIRE

 

The undersigned holder of shares of the common stock, par value $0.0001 per share of Augme Technologies, Inc. (the “Company”) issued pursuant to a certain Securities Purchase Agreement by and among the Company and the Purchasers named therein, dated as of February __, 2011 (the “Agreement”), understands that the Company intends to file with the Securities and Exchange Commission a registration statement on Form S-1 (the “Resale Registration Statement”) for the registration and the resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities in accordance with the terms of the Agreement and the terms of the Registration Rights Agreement by and among the Company and the Purchasers named therein, dated as of February __, 2011 (the “Registration Rights Agreement”). All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in either the Agreement or Registration Rights Agreement.

 

In order to sell or otherwise dispose of any Registrable Securities pursuant to the Resale Registration Statement, a holder of Registrable Securities generally will be required to be named as a selling stockholder in the related prospectus or a supplement thereto (as so supplemented, the “Prospectus”), deliver the Prospectus to purchasers of Registrable Securities, if required (including pursuant to Rule 172 under the Securities Act) and be bound by the provisions of the Agreement (including certain indemnification provisions, as described below).  Holders must complete and deliver this Notice and Questionnaire in order to be named as selling stockholders in the Prospectus.  Holders of Registrable Securities who do not complete, execute and return this Notice and Questionnaire within three (3) Trading Days following the date of the Agreement (1) will not be named as selling stockholders in the Resale Registration Statement or the Prospectus and (2) may not use the Prospectus for resales of Registrable Securities.

 

Certain legal consequences arise from being named as a selling stockholder in the Resale Registration Statement and the Prospectus.  Holders of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling stockholder in the Resale Registration Statement and the Prospectus.

 

NOTICE

 

The undersigned holder (the “Selling Stockholder”) of Registrable Securities hereby gives notice to the Company of its intention to sell or otherwise dispose of Registrable Securities owned by it and listed below in Item 3, unless otherwise specified in Item 3, pursuant to the Resale Registration Statement.  The undersigned, by signing and returning this Notice and Questionnaire, understands and agrees that it will be bound by the terms and conditions of this Notice and Questionnaire, the Agreement and the Registration Rights Agreement.

 

The undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate and complete:

 

  

  

  

QUESTIONNAIRE

 

	
1.

	
Name.

 

	
  

	
(a)

	
Full Legal Name of Selling Stockholder:

 

	
  

	
(b)

	
Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities Listed in Item 3 below are held:

 

	
  

	
(c)

	
Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the securities covered by the questionnaire):

 

	
2.

	
Address for Notices to Selling Stockholder:

 

Telephone:                                                                                                                                     

Fax:                                                                                                                                     

Contact Person:                                                                                                                                     

E-mail address of Contact Person:                                                                                                                                     

 

	
3.

	
Beneficial Ownership of Registrable Securities Issuable Pursuant to the Purchase Agreement:

 

	
  

	
(a)

	
Type and Number of Registrable Securities beneficially owned and issued pursuant to the Agreement:

 

	
  

	
(b)

	
Number of shares of Common Stock to be registered pursuant to this Notice for resale:

 

 

 

  

  

  

	
4.

	
Broker-Dealer Status:

 

	
  

	
(a)

	
Are you a broker-dealer registered pursuant to Section 15 of the Exchange Act?

 

Yes           No

 

	
  

	
(b)

	
If “yes” to Item 4(a), did you receive your Registrable Securities as compensation for investment banking services to the Company?

 

Yes           No

 

	
Note:

	
If no, the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

	
  

	
(c)

	
Are you an affiliate of a broker-dealer registered pursuant to Section 15 of the Exchange Act?

 

Yes           No

 

Note:           If yes, provide a narrative explanation below:

 

	
  

	
(d)

	
If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

 

Yes           No

 

	
  

	
Note:

	
If no, the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

	
  

	
For the purposes of this Item 4, an “affiliate” of a registered broker-dealer shall include any company that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with such broker-dealer, and does not include any individuals employed by such broker-dealer or its affiliates.

 

	
5.

	
Nature of Your Beneficial Ownership:

 

	
  

	
(a)

	
If the name of the beneficial owner of the Registrable Securities set forth in your response to Item 1(a) above is that of a limited partnership, state the names of the general partners of such limited partnership:

 

  

  

  

 

	
  

	
(b)

	
With respect to each general partner listed in Item 5(a) above who is not a natural person, and is not publicly held, name each stockholder (or managing member, if applicable) of such general partner. If any of these named stockholders are not natural persons or publicly held entities, please provide the same information. This process should be repeated until you reach natural persons or a publicly held entity.

 

	
  

	
(c)

	
If you are not publicly held, name the entity that exercises voting and dispositive power over the Registrable Securities set forth in Item 3 above (the “Controlling Entity”). If the Controlling Entity is not a natural person or a publicly held entity, please name the entity that controls such Controlling Entity and provide the same information for the entity controlling the Controlling Entity. This process should be repeated until you reach natural persons or a publicly held entity.

 

	
  

	
(i)

	
Full legal name of Controlling Entity(ies) or natural person(s) who have sole or shared voting or dispositive power over the Registrable Securities:

 

	
  

	
(a)

	
Business address (including street address) (or residence if no business address), telephone number and facsimile number of such person(s):

 

Address:                      

 

Telephone:                      

Fax:                      

 

	
  

	
(b)

	
Name(s) of stockholders:

 

 

	
  

	
(ii)

	
Full legal name of Controlling Entity(ies):

 

	
  

	
(a) Business address (including street address) (or residence if no business address), telephone number and facsimile number of such person(s):

 

Address:                      

 

Telephone:                      

Fax:                      

 

	
  

	
(b) Name(s) of shareholders:

 

  

  

  

 

	
6.

	
Beneficial Ownership of Other Securities of the Company Owned by the Selling Stockholder.

 

Except as set forth below in this Item 6, the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable Securities listed above in Item 3.

 

Type and amount of other securities beneficially owned:

 

	
7.

	
Relationships with the Company:

 

Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three years.

 

State any exceptions here:

 

	
8.

	
Plan of Distribution:

 

The undersigned has reviewed the form of Plan of Distribution attached as Annex A to the Registration Rights Agreement, and hereby confirms that, except as set forth below, the information contained therein regarding the undersigned and its plan of distribution is correct and complete.

 

State any exceptions here:

 

 

***********

 

  

  

  

The undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof and prior to the effective date of any applicable Resale Registration Statement.  All notices hereunder and pursuant to the Agreement shall be made in writing, by hand delivery, confirmed or facsimile transmission, first-class mail or air courier guaranteeing overnight delivery at the address set forth below.  In the absence of any such notification, the Company shall be entitled to continue to rely on the accuracy of the information in this Notice and Questionnaire.

 

By signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items (1) through (8) above and the inclusion of such information in the Resale Registration Statement and the Prospectus.  The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of any such Registration Statement and the Prospectus.

 

Once this Notice and Questionnaire is executed by the undersigned and received by the Company, the terms of this Notice and Questionnaire, and the representations and warranties contained herein, shall be binding on, shall inure to the benefit of and shall be enforceable by the respective successors, heirs, personal representatives, and assigns of the Company and the undersigned with respect to the Registrable Securities beneficially owned by the undersigned and listed in Item 3 above.

 

I confirm that, to the best of my knowledge and belief, the foregoing statements (including without limitation the answers to this Questionnaire) are correct.

 

 

 

 

 

 

 

  

  

  

 

IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent.

 

	
Dated:

	
Beneficial Owner:

 

 

	  	
By:

	  	
Name:

	  	
Title:

  

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

Ted Warner

Northland Capital Markets

45 South 7th Street

Suite 2000

Minneapolis, MN 55402

Tel: 612-851-4906

Fax: 612-677-3726

Email: twarner@northlandcapitalmarkets.com

 

 

 

4866593/5WebFilings | EDGAR view

Loan 1003622

Exhibit 10.1
 
 
 
 
 
LOAN AGREEMENT
by and among
SUNSET BRONSON ENTERTAINMENT PROPERTIES, LLC, 
a Delaware limited liability company, 
and
SUNSET GOWER ENTERTAINMENT PROPERTIES, LLC,
a Delaware limited liability company,
collectively, as Borrowers
and
WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Lender
Entered into as of February 11, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loan 1003622

Table of Contents
				
	 
	 
	 

	ARTICLE 1.
	DEFINITIONS
	2
	 

	1.1
	DEFINED TERMS
	2
	 

	1.2
	EXHIBITS INCORPORATED
	6
	 

	ARTICLE 2.
	LOAN
	6
	 

	2.1
	LOAN
	6
	 

	2.2
	LOAN FEE
	6
	 

	2.3
	LOAN DOCUMENTS
	6
	 

	2.4
	EFFECTIVE DATE
	6
	 

	2.5
	MATURITY DATE
	6
	 

	2.6
	PAYMENTS
	6
	 

	2.7
	FULL REPAYMENT AND RECONVEYANCE
	7
	 

	2.8
	PARTIAL RECONVEYANCE
	7
	 

	ARTICLE 3.
	DISBURSEMENT
	8
	 

	3.1
	CONDITIONS PRECEDENT
	8
	 

	3.2
	ACCOUNT, PLEDGE AND ASSIGNMENT, AND DISBURSEMENT AUTHORIZATION
	9
	 

	3.3
	FUNDS TRANSFER DISBURSEMENTS
	9
	 

	ARTICLE 4.
	INSURANCE
	9
	 

	4.1
	TITLE INSURANCE; SURVEY
	9
	 

	4.2
	PROPERTY INSURANCE
	10
	 

	4.3
	FLOOD HAZARD INSURANCE
	10
	 

	4.4
	LIABILITY INSURANCE
	10
	 

	4.5
	OTHER COVERAGE
	10
	 

	4.6
	GENERAL
	10
	 

	ARTICLE 5.
	REPRESENTATIONS AND WARRANTIES
	10
	 

	5.1
	AUTHORITY/ENFORCEABILITY
	10
	 

	5.2
	BINDING OBLIGATIONS
	10
	 

	5.3
	FORMATION AND ORGANIZATIONAL DOCUMENTS
	10
	 

	5.4
	NO VIOLATION
	11
	 

	5.5
	COMPLIANCE WITH LAWS; USE
	11
	 

	5.6
	LITIGATION
	11
	 

	5.7
	FINANCIAL CONDITION
	11
	 

	5.8
	NO MATERIAL ADVERSE CHANGE
	11
	 

	5.9
	ACCURACY
	11
	 

	5.10
	AMERICANS WITH DISABILITIES ACT COMPLIANCE
	11
	 

	5.11
	TAX LIABILITY
	11
	 

	5.12
	BUSINESS LOAN
	12
	 

	ARTICLE 6.
	HAZARDOUS MATERIALS
	12
	 

	6.1
	SPECIAL REPRESENTATIONS AND WARRANTIES
	12
	 

	6.2
	HAZARDOUS MATERIALS COVENANTS
	12
	 

	6.3
	INSPECTION BY LENDER
	13
	 

	6.4
	HAZARDOUS MATERIALS INDEMNITY
	13
	 

	6.5
	LEGAL EFFECT OF SECTION
	13
	 

	ARTICLE 7.
	COVENANTS OF BORROWERS
	13
	 

	7.1
	EXPENSES
	13
	 

Loan 1003622

Table of Contents
				
	7.2
	ERISA COMPLIANCE
	14
	 

	7.3
	ANNUAL CASH FLOW TEST; REMARGINING
	1
	 

	7.4
	LEASING
	1
	 

	7.5
	SUBDIVISION MAPS
	1
	 

	7.6
	FURTHER ASSURANCES
	1
	 

	7.7
	ASSIGNMENT
	1
	 

	7.8
	MANAGEMENT OF PROPERTY
	1
	 

	7.9
	DERIVATIVE DOCUMENTS
	1
	 

	7.10
	TRS ENTITIES
	1
	 

	7.11
	NEGATIVE PLEDGE
	1
	 

	7.12
	MODIFICATIONS OF ORGANIZATIONAL DOCUMENTS
	1
	 

	7.13
	MATERIAL CONTRACTS
	1
	 

	7.14
	INDEBTEDNESS
	1
	 

	7.15
	TRANSACTIONS WITH AFFILIATES
	1
	 

	7.16
	SECURITY DEPOSITS AND PREPAID RENT
	1
	 

	ARTICLE 8.
	REPORTING COVENANTS
	1
	 

	8.1
	BOOKS AND RECORDS
	1
	 

	8.2
	LEASING REPORTS
	1
	 

	8.3
	OPERATING STATEMENTS FOR PROPERTY
	1
	 

	ARTICLE 9.
	DEFAULTS AND REMEDIES
	1
	 

	9.1
	DEFAULT
	1
	 

	9.2
	ACCELERATION UPON DEFAULT; REMEDIES
	1
	 

	9.3
	DISBURSEMENTS TO THIRD PARTIES
	1
	 

	9.4
	REPAYMENT OF FUNDS ADVANCED
	1
	 

	9.5
	RIGHTS CUMULATIVE, NO WAIVER
	1
	 

	ARTICLE 10.
	DUE ON SALE/ENCUMBRANCE
	1
	 

	10.1
	PROPERTY TRANSFERS
	1
	 

	10.2
	EQUITY TRANSFERS
	1
	 

	ARTICLE 11.
	MISCELLANEOUS PROVISIONS
	1
	 

	11.1
	INDEMNITY
	1
	 

	11.2
	Additional Security Interest
	1
	 

	11.3
	FORM OF DOCUMENTS
	1
	 

	11.4
	NO THIRD PARTIES BENEFITED
	1
	 

	11.5
	NOTICES
	1
	 

	11.6
	ATTORNEY-IN-FACT
	1
	 

	11.7
	ACTIONS
	1
	 

	11.8
	RIGHT OF CONTEST
	1
	 

	11.9
	RELATIONSHIP OF PARTIES
	1
	 

	11.10
	DELAY OUTSIDE LENDER'S CONTROL
	1
	 

	11.11
	ATTORNEYS' FEES AND EXPENSES; ENFORCEMENT
	1
	 

	11.12
	IMMEDIATELY AVAILABLE FUNDS
	1
	 

	11.13
	LENDER'S CONSENT
	1
	 

	11.14
	LOAN SALES AND PARTICIPATION; DISCLOSURE OF INFORMATION
	1
	 

	11.15
	CAPITAL ADEQUACY
	1
	 

	11.16
	LENDER'S AGENTS
	1
	 

	11.17
	TAX SERVICE
	1
	 

Loan 1003622

Table of Contents
				
	11.18
	BORROWERS' WAIVER
	1
	 

	11.19
	SEVERABILITY
	1
	 

	11.20
	HEIRS, SUCCESSORS AND ASSIGNS
	1
	 

	11.21
	TIME
	1
	 

	11.22
	HEADINGS
	1
	 

	11.23
	GOVERNING LAW
	1
	 

	11.24
	USA PATRIOT ACT NOTICE. COMPLIANCE
	1
	 

	11.25
	INTEGRATION; INTERPRETATION
	1
	 

	11.26
	JOINT AND SEVERAL LIABILITY
	1
	 

	11.27
	SPECIAL REPRESENTATIONS, COVENANTS AND WAIVERS
	1
	 

	11.28
	COUNTERPARTS
	1
	 

 
 

Loan 1003622

 
LOAN AGREEMENT
THIS LOAN AGREEMENT (“Agreement”) is entered into as of February 11, 2011, by and among SUNSET BRONSON ENTERTAINMENT PROPERTIES, LLC, a Delaware limited liability company (“Bronson”), and SUNSET GOWER ENTERTAINMENT PROPERTIES, LLC, a Delaware limited liability company (“Gower”; Bronson and Gower each a “Borrower” and collectively, jointly and severally, “Borrowers”), and Wells Fargo Bank, National Association (“Lender”).
R E C I T A L S
		
	A.    
	Bronson owns certain real property commonly known as Sunset Bronson Studios, 5800 West Sunset Boulevard, Los Angeles, California, and Gower owns certain real property commonly known as Sunset Gower Studios, 1438 North Gower Street Los Angeles, California, with each such real property consisting of production studios, stages, control room and other audio and video room space, office and other support space, and storage facilities, and more specifically described on Exhibit A hereto and all improvements now or hereafter existing thereon (each a “Property”, and collectively, the “Properties”).

		
	B.    
	Borrowers are wholly-owned subsidiaries of Hudson Pacific Properties, LP., a Maryland limited partnership;

		
	C.    
	In connection with the REIT's initial public offering of common stock, Bronson and Gower agreed to transfer certain equipment and other assets, leases of equipment and other assets, agreements with third party vendors, and other agreements to Sunset Bronson Services, LLC, a Delaware limited liability company, and Sunset Gower Services, LLC, a Delaware limited liability company, (each a “TRS Entity”, and, collectively, the “TRS Entities”) respectively.

		
	D.    
	Borrowers have requested that Lender make a loan to Borrowers in the amount of Ninety-Two Million and No/100ths Dollars ($92,000,000.00) (“Loan”), secured in part by the Properties, and the rights and assets previously transferred to the TRS Entities. 

		
	E.    
	Lender is willing to make such Loan available upon the terms and conditions hereinafter set forth, and Borrowers desire to borrow from Lender, and Lender agrees to loan to Borrowers, the amounts described below.

NOW, THEREFORE, Borrowers and Lender agree as follows:
 
ARTICLE 1.  DEFINITIONS
 
		
	1.1    
	DEFINED TERMS.  The following capitalized terms generally used in this Agreement shall have the meanings defined or referenced below.  Certain other capitalized terms used only in specific sections of this Agreement are defined in such sections.

“Account” - means an account with Lender, account number 4124801291, in the name of Borrowers or Borrowers' designee into which Loan proceeds will be deposited.
“ADA” - means the Americans with Disabilities Act, 42 U.S.C. §§ 12101, et seq. as now or hereafter amended or modified.
“Affiliate” - means any entity that, directly or indirectly (including through one or more intermediaries), Controls, is Controlled by or is under common Control with the Guarantor.
“Agreement” - shall have the meaning given to such term in the preamble hereto.
“Bankruptcy Code” - means the Bankruptcy Reform Act of 1978 (11 USC § 101-1330) as now or hereafter amended or recodified.
“Blanket Insurance” - means any intercompany umbrella insurance policies maintained by Borrowers from time to time. 
“Border Zone Property” - means any property designated as “border zone property” under the provisions of California Health and Safety Code, Sections 25220 et seq., or any regulation adopted in accordance therewith.
“Borrowers” - means, collectively, jointly and severally, Sunset Bronson Entertainment Properties, LLC, a Delaware limited liability company, and Sunset Gower Entertainment Properties, LLC, a Delaware limited liability company.
“Bronson TRS” - means Sunset Bronson Services, LLC, a Delaware limited liability company.
“Business Day” - means a day of the week (but not a Saturday, Sunday or holiday) on which the offices of 

2

Loan 1003622

Lender are open to the public for carrying on substantially all of Lender's business functions. Unless specifically referenced in this Agreement as a Business Day, all references to “days” shall be to calendar days.
“Change of Control” - means the occurrence of any of the following events:  (i) any individual “person” or individual “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), excluding the Permitted Investors, shall become, or obtain rights (whether by means of warrants, options or otherwise) to become, the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of more than 30% of the outstanding common stock of the REIT; (ii) the board of directors of the REIT shall cease to consist of a majority of Continuing Directors; (iii) the REIT or the Guarantor shall cease to own, directly or indirectly, one hundred percent (100%) of the equity interests of Borrowers and/or TRS Entities, free and clear of any liens or encumbrances (other than liens or encumbrances in favor of Lender); (iv) the REIT shall (A) fail to be sole general partner of the Guarantor or cease to own all the general partnership interests of the Guarantor or (B) fail to Control the management and policies of the Guarantor.
“Collateral” - shall have the meaning given to such term in the Deeds of Trust, collectively.
“Continuing Directors” - means the directors of the REIT as of the date hereof and each other director of the REIT, if, in each case, such other director's nomination for election to the board of directors of the REIT is recommended by at least sixty-six and two-thirds percent (66 2/3 %) of the then Continuing Directors or such other director receives the vote of the Permitted Investors in his or her election by the shareholders of the REIT.
“Control” - means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of an entity, whether through the ability to exercise voting power, by contract or otherwise.
“Control Investment Affiliate” - means, as to any Person, any other Person that (i) directly or indirectly, is in Control of, is Controlled by, or is under common Control with, such Person; and (ii) is organized by such Person primarily for the purpose of making equity or debt investments in one or more companies.
“Deeds of Trust” - means those certain Deeds of Trust with Absolute Assignment of Leases and Rents, Security Agreement and Fixture Filing of even date herewith executed, by Borrowers, as Trustor, to American Securities Company, a California corporation, as Trustee, for the benefit of Lender, as Beneficiary, as hereafter amended, supplemented, replaced or modified.  Each of the Deeds of Trust is referred to herein individually as a “Deed of Trust”.
“Default” - shall have the meaning given to such term in Section 9.1.
“Dollars” and “$” - means the lawful money of the United States of America.
“Effective Date” - means the earlier of (a) date the Deeds of Trust are recorded in the Office of the County Recorder of the county where the Property is located, and (b) the date Lender authorizes the Loan proceeds to be released to Borrowers.
“Exchange Act” - means the Securities Exchange Act of 1934, as amended.
“Existing Swap” means the ISDA Master Agreement dated May 6, 2008, executed by Bronson, together with the ISDA schedule and the rate confirmation dated June 9, 2010, and any other ISDA schedules and rate confirmations executed in connection therewith, as amended, restated or replaced from time to time.
“Expense Reimbursements” - means the expense reimbursements actually received by Borrowers for the twelve (12) month period (or six (6) month period, times two (2), when testing Loan Constant in connection with a Property release) prior to any date of determination.
“Fixed Rate Price Adjustment” - shall have the meaning given to such term in the Note. 
“Gower TRS” - means Sunset Gower Services, LLC, a Delaware limited liability company.
“Gross Operating Income” - means (without including non-cash items) the sum of any and all amounts, payments, fees, rentals (including, if and to the extent actually disbursed to Bronson, the KTLA Deferred Monthly Rent Payment), additional rentals, expense reimbursements (including, without limitation, all reimbursements by tenants, lessees, licensees and other users of the Property) discounts or credits to Borrowers, income, interest and other monies directly or indirectly received by or on behalf of or credited to any Borrower from any person with respect to such Borrower's ownership, use, development, operation, leasing, franchising, marketing or licensing of the Property, including parking and ancillary revenues. Gross Operating Income shall be computed on an accrual basis and shall include for each quarterly statement all 

3

Loan 1003622

amounts actually received in such quarter whether or not such amounts are attributable to a charge arising in such quarter.
“Gross Rents” - means the Gross Operating Income actually received from the Property for the twelve (12) month period (or six (6) month period, times two (2), when testing Loan Constant in connection with a Property release) prior to any date of determination.
“Ground Lease” - means, collectively, the ground leases referenced in the Deed of Trust executed by Sunset Gower and Gower TRS for the benefit of Lender, as the same may be amended or modified from time to time.
“Guarantor” - means Hudson Pacific Properties, L.P., a Maryland limited partnership, and any other person or entity who, or which, in any manner, is or becomes obligated to Lender under any guaranty or indemnity, now or hereafter executed in connection with respect to the Loan (collectively or severally as the context thereof may suggest or require).
“Guaranty” - means the Partial Payment and Carve-Out Guaranty of even date herewith executed and delivered by Guarantor to Lender.
“Hazardous Materials” - shall have the meaning given to such term in Section 6.1 (a).
“Hazardous Materials Claims” - shall have the meaning given to such term in Section 6.1 (c).
“Hazardous Materials Laws” - shall have the meaning given to such term in Section 6.1 (b).
“Hedge Arrangement” - means an interest rate hedge transaction entered into by Borrowers, together with all documents and agreements relating thereto, including, as applicable, any ISDA Master Agreement, ISDA Schedule and trade confirmation, together with all modifications, extensions, renewals and replacements thereof.
“Lease” and “Leases” - mean any and all present and future leases of the Property or any portion thereof, all licenses and agreements relating to the management, leasing or operation of the Property or any portion thereof, and all other agreements of any kind relating to the use or occupancy of the Property or any portion thereof.
“KTLA Deferred Monthly Rent Payment” - shall have the meaning given to such term in Section 7.16(c).
“Lender” - means Wells Fargo Bank, National Association.
“Lien” - means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge or other security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement and any capital lease have substantially the same economic effect as the foregoing), but not including any non-delinquent assessment for property taxes.
“Loan” - means the principal sum that Lender agrees to lend and Borrowers agree to borrow pursuant to the terms and conditions of this Agreement: Ninety-Two Million and No/100ths Dollars ($92,000,000.00).
“Loan Constant” - means, as any date of determination, the percentage determined by dividing Net Operating Income by the then current commitment amount.
“Loan Documents” - means those documents, as hereafter amended, supplemented, replaced or modified, properly executed and in recordable form, if necessary, listed in Exhibit B as Loan Documents.
“Major Lease” - means leases with a term of more than six (6) months and covering more than ten thousand (10,000) rentable square feet.
“Major Tenant” - means the tenant under any Major Lease. 
“Material Contract” - means any contract with a duration of more than twelve (12) months or a value of greater than One Million and No/100ths Dollars ($1,000,000.00), excluding Leases.
“Maturity Date” - means February 11, 2016.
“Net Operating Income” - means, as of any date of determination:  (i) Gross Rents; plus (ii) Expense Reimbursements; minus the actual Permitted Operating Expenses for the twelve (12) month (or six (6) month, times two (2), if applicable) period prior to such date of determination; and (z) the sum of (A) an amount for reasonable capital reserves equal to ten (10) cents per square foot of leaseable space, and (B) the greater of (x) actual management expenses, and (y) three percent (3%) of the amount of Gross Rents and Expense Reimbursements reduced by any adjustment for collection losses.

4

Loan 1003622

“Note” - means the Promissory Note Secured By Deeds of Trust of even date herewith, in the original principal amount of the Loan, executed by Borrowers and payable to the order of Lender, as hereafter amended, supplemented, replaced or modified.
“Operating Statement” - shall have the meaning given to such term in Section 8.4.
“Other Related Documents” - means those documents, as hereafter amended, supplemented, replaced or modified from time to time, properly executed and in recordable form, if necessary, listed in Exhibit B as Other Related Documents.
“Parking Lease” - means collectively, (i) the Parking Lot Lease dated as of May __,2008, by and between Sunset Studios Holdings, LLC, a Delaware limited liability company, and Bronson, (ii) the Agreement, dated September 28, 2006, executed by GI Partners Studios, LLC, a Delaware limited liability company (predecessor-in-interest to Gower) and John Vonk and Rayna Vonk, as Trustees of the Vonk Family Trust dated June 7, 1990 and (iii) the License Agreement, dated October __, 2006, executed by GI Partner Studios, LLC (predecessor-in-interest to Gower), and East West Studios, LLC, a Delaware limited liability company, each, as heretofore or hereafter amended or modified from time to time.
“Participant” - shall have the meaning given to such term in Section 11.14.
“Permitted Investors” - means, collectively, Farallon Capital Partners, L.P., Farallon Capital Institutional Partners, L.P., Farallon Capital Institutional Partners III, L.P., Morgan Stanley Investment Partnership, Victor J. Coleman, Howard S. Stern, Christopher Barton, Mark T. Lammas, Dale Shimoda, Theodore R. Antenucci, James M. Burnett, Richard B. Fried, Jonathan M. Glaser, Robert M. Moran, Jr., and Barry A. Porter, and their Control Investment Affiliates.
“Permitted Operating Expenses” - means the following expenses to the extent that such expenses are reasonable in amount and customary for properties of this type: (i) taxes and assessments imposed upon the Property to the extent that such taxes and assessments are required to be paid by Borrowers and are actually paid or reserved for by Borrowers; (ii) bond assessments; (iii) insurance premiums for casualty insurance (including, without limitation, earthquake) and liability insurance carried in connection with the Property, provided, however, if any, insurance is maintained as part of a blanket policy covering the Property and other properties, the insurance premium included in this subparagraph shall be the premium fairly allocable to the Property; and (iv) operating expenses incurred by Borrowers for the management, operation, cleaning, leasing, maintenance and repair of the Property. Permitted Operating Expenses shall not include any interest or principal payments on the Loan or any allowance for depreciation.
“Person” - means an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature.
“Potential Default” - means an event or condition which, with the giving of notice or the passage of time or both, would constitute a Default.
“Prohibited Property Transfer” - shall have the meaning given to such term in Section 10.1.
“Property” - shall have the meaning given to such term in Recital A.
“Reciprocal Easement Agreement” - means the Reciprocal Easement Agreement by and between SGS Holdings, LLC, a Delaware limited liability company, d/b/a “Sunset Gower Studios, Ltd., and Allen M. Sides, an individual, dated as of October 3, 2007, and recorded October 9, 2007, as Instrument No. 20072298259, in the Official Records of the Recorder's Office of Los Angeles, California.
“REIT” - means Hudson Pacific Properties, Inc., a Maryland corporation.
“Restricted Party” - means each of (i) Borrowers, (ii) any entity obligated under any guaranty or indemnity made in favor of Lender in connection with the Loan and (iii) any shareholder, partner, member or non-member manager, or any direct or indirect legal or beneficial owner of Borrowers, or any entity obligated under a guaranty or indemnity made in favor of Lender in connection with the Loan.
“S&P” - means Standard & Poor's Ratings Services and its successors.
“Security Deposit Account” - means the blocked account of Borrowers, established by Borrowers with Lender and maintained with Lender, identified as Account Number 4124804972, and in to which deposits shall be made in accordance with Section 7.16.
“Secured Obligations” - shall have the meaning given to such term in the Deeds of Trust, collectively.

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“Subdivision Map” - shall have the meaning given to such term in Section 7.5.
“Title Policy” - means the ALTA Lender's Policy of Title Insurance as issued by Chicago Title Company.
“Transfer” - means any direct or indirect sale, installment sale, exchange, mortgage, pledge, hypothecation, assignment, encumbrance or other transfer, conveyance or disposition, whether voluntarily, involuntarily or by operation of law or otherwise.
“TRS Entities” - means collectively, jointly and severally, Sunset Bronson Services, LLC, a Delaware limited liability company, and Sunset Gower Services, LLC, a Delaware limited liability company.
“TRS Documents” - means collectively, (i) (a) the Assignment and Assumption Agreement dated as of June 29, 2010, by and between Bronson and Bronson TRS, (b) the Transfer, Assignment and Assumption Agreement dated as of June 29, 2010, by and between Bronson and Bronson TRS, and (c) the Lease Agreement dated as of June 29, 2010, by and between Bronson and Bronson TRS, which lease is evidenced by a memorandum of such Lease Agreement recorded as of July 1, 2010, as Instrument No. 20100904690, in the Official Records of the Recorder's Office of Los Angeles, California, and (ii) (a) the Assignment and Assumption Agreement dated as of June 29, 2010, by and between SGS Holdings, LLC, a Delaware limited liability company (“SGS”), and Gower TRS, (b) the Transfer, Assignment and Assumption Agreement dated as of June 29, 2010, by and between SGS and Gower TRS, and (c) the Lease Agreement dated as of June 29, 2010, by and between SGS and Gower TRS, which lease is evidenced by a memorandum of such Lease Agreement recorded on or about the date hereof, in the Official Records of the Recorder's Office of Los Angeles, California, all as assigned to Gower in accordance with the General Assignment, Assignment of Leases and Bill of Sale, dated on or about the date hereof.
 
		
	1.2    
	EXHIBITS INCORPORATED.  All exhibits, schedules or other items attached hereto are incorporated into this Agreement by such attachment for all purposes.

 
ARTICLE 2.  LOAN
 
		
	2.1    
	LOAN.  Subject to the terms of this Agreement, Lender agrees to lend to Borrowers and Borrowers agree to borrow from Lender the principal sum of Ninety-Two Million and No/100ths Dollars ($92,000,000.00); said sum to be evidenced by the Note of even date herewith.  The Note shall be secured, in part, by the Deeds of Trust, of even date herewith, encumbering certain real property and improvements as legally defined therein. Amounts disbursed to or on behalf of Borrowers pursuant to the Note shall be used for Borrowers' ordinary business purposes, subject to the limitations set forth herein.

 
		
	2.2    
	LOAN FEE.  Borrowers shall pay to Lender, at Loan closing, a loan fee in the amount of Six Hundred Forty-Four Thousand and No/100ths Dollars ($644,000.00).  The loan fee shall be deemed earned when paid and shall be nonrefundable.

 
		
	2.3    
	LOAN DOCUMENTS.  Borrowers shall deliver to Lender concurrently with this Agreement each of the documents, properly executed and in recordable form, as applicable, described in Exhibit B as Loan Documents, together with those documents described in Exhibit B as Other Related Documents.

 
		
	2.4    
	EFFECTIVE DATE.  The date of the Loan Documents is for reference purposes only.  The effective date of delivery and transfer to Lender of the security under the Loan Documents and of Borrowers' and Lender's obligations under the Loan Documents is the Effective Date.

 
 
		
	2.5    
	MATURITY DATE.  The maturity date of the Loan shall be the Maturity Date, at which time all sums due and owing under this Agreement and the other Loan Documents shall be repaid in full.  All payments due to Lender under this Agreement, whether at the Maturity Date or otherwise, shall be paid in immediately available funds, in Dollars.

 
		
	2.6    
	PAYMENTS.

		
	(a)    
	Manner and Time of Payment.  Any payment made upon the outstanding principal balance of the Loan shall be credited as of the Business Day received, provided such payment is received by Lender no later than 11:00 a.m. (Pacific Standard Time or Pacific Daylight Time, as applicable) and constitutes immediately available funds, in Dollars.  Any principal payment received after said time or which does not constitute immediately available funds shall be credited upon such funds having become 

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unconditionally and immediately available to Lender.  Amounts repaid may not be re-borrowed.
		
	(b)    
	Payments on Non-Business Days.  Whenever any payment to be made by Borrower hereunder shall be stated to be due on a day which is not a Business Day, payments shall be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest hereunder and of any fees due under this Agreement, as the case may be.

		
	(c)    
	Interest.  Interest is payable on the Loan when and as set forth in the Note.

		
	(d)    
	Required Principal Amortization.  Commencing on February 1, 2014, and continuing on a monthly basis thereafter until the Maturity Date, Borrowers shall make monthly principal amortization payments, in the amount of Ninety-Two Thousand Seven Hundred Seventy-One Thousand and No/100ths Dollars ($92,771.00).  Amounts repaid may not be re-borrowed.

		
	(e)    
	Voluntary Prepayment.  

		
	(i)    
	The Loan may not be prepaid, in whole, or in part, on or before August 11, 2012 (“Lockout Period”).

		
	(ii)    
	From August 11, 2012 until February 11, 2013 the Loan may be prepaid, in whole or in part; provided, however, that, concurrently with any such prepayment, Borrowers shall pay to Lender a prepayment fee in an amount equal to one quarter of one percent (0.25%) of the amount being prepaid (such fee shall be deemed earned when paid and shall be non-refundable) (the “Exit Fee”), plus any Fixed Rate Price Adjustment, and/or any applicable termination or other breakage or settlement fee associated with a Hedge Arrangement.  Notwithstanding the foregoing, no Exit Fee shall be due if, at the time of such repayment, the Guarantor has an S&P credit rating of BBB- or better.

		
	(iii)    
	Borrowers shall have no obligation to pay an Exit Fee on account of any prepayment of the Loan (whether in whole or in part) made after February 11, 2013; provided, however that Borrowers shall at all times be responsible for any Fixed Rate Price Adjustment, and/or any termination or other breakage or settlement fee associated with a Hedge Arrangement payable in connection with any prepayments.

		
	(iv)    
	No Exit Fee shall be due in connection with any payments made to Lender from casualty or condemnation proceeds, or in connection with payments required under Section 2.8 (partial reconveyance), or Section 7.3 (remargining).

 
		
	2.7    
	FULL REPAYMENT AND RECONVEYANCE.  Upon receipt of all sums owing and outstanding under the Loan Documents, Lender shall issue a full reconveyance of the Property from the liens of the Deeds of Trust; provided, however, that all of the following conditions shall be satisfied at the time of, and with respect to, such reconveyance:  (a) Lender shall have received all escrow, closing and recording costs, the costs of preparing and delivering such reconveyance and any sums then due and payable under the Loan Documents; and (b) Lender shall have received a written release, satisfactory to Lender, of any set aside letter, letter of credit, or other form of undertaking which Lender has issued to any surety, governmental agency, or any other party in connection with the Loan and/or the Property.  Lender's obligation to make further disbursements under the Loan shall terminate as to any portion of the Loan undisbursed as of the date of issuance of such release or reconveyance, and any commitment of Lender to lend any undisbursed portion of the Loan shall be canceled.

 
		
	2.8    
	PARTIAL RECONVEYANCE OF A PROPERTY.  At any time prior to the Maturity Date of the Loan, Lender shall, at Borrowers' request, issue a reconveyance from the Deed of Trust for one Property, provided, however, that prior to or simultaneously with each such partial reconveyance all of the following conditions shall be satisfied:

		
	(a)    
	No Default or Potential Default shall exist under the Loan Documents; and

		
	(b)    
	Lender shall have received any and all sums then due and owing under the Loan Documents together with all escrow, closing and recording costs, the costs of preparing and delivering such reconveyance and the cost of any title insurance endorsements required by Lender, including, without limitation, a CLTA 116.3 and 111 endorsement; and

		
	(c)    
	Lender shall have received evidence satisfactory to Lender that:  (i) the portion of the Property to be reconveyed and the Property which shall remain encumbered by a Deed of Trust, are each comprised of legal parcels lawfully created in compliance with all subdivision laws and ordinances and, at 

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Loan 1003622

Borrowers' sole cost, Lender shall have received any title insurance endorsements to that effect requested by Lender; and (ii) that the Property which shall remain encumbered by a Deed of Trust shall have the benefit of all utilities, easements, public and/or private streets, covenants, conditions, and restrictions as may be necessary, in Lender's sole opinion, for the anticipated use, development and improvement thereof; and
		
	(d)    
	Lender shall have received a written appraisal, or appraisals, as applicable, prepared, within ninety (90) days prior to the date of the reconveyance, in conformance with the requirements of the Comptroller of the Currency, confirming to the reasonable satisfaction of Lender that the loan-to-value percentage, determined by dividing (i) the then outstanding Loan amount, plus any accrued and unpaid interest and/or fees, by (ii) the “as-is” fair market value of the Property which shall remain encumbered a Deed of Trust (after adjustment for senior liens and regular and special tax assessments), does not exceed fifty-five percent (55%); and

		
	(e)    
	Lender shall have received evidence reasonably satisfactory to Lender that the Property which shall remain encumbered by a Deed of Trust, generates a Loan Constant of at least fourteen percent (14%); and

		
	(f)    
	Lender shall have received a written release satisfactory to Lender of any set aside letter, letter of credit or other form of undertaking which Lender has issued to any surety, governmental agency or any other party in connection with the Loan and/or the Property; and

		
	(g)    
	Lender shall have received evidence satisfactory to Lender that any tax, bond or assessment, including without limitation under the Mello-Roos Community Facilities Act of 1982, which constitutes a lien against the Property has been properly allocated between the portion of the Property to be reconveyed and the Property which shall remain encumbered by the applicable Deed of Trust; and

Neither the acceptance of any payment nor the issuance of any reconveyance by Lender shall affect Borrowers' obligation to repay all amounts owing under the Loan Documents or under the lien of the remaining Deed of Trust on the Property which is not reconveyed.  To qualify for a release, Borrower shall have the right to pay down the outstanding principal balance of the Loan in order to satisfy conditions (d) and (e) above.  Amounts repaid may not be re-borrowed.
 
		
	2.9    
	Recourse.  The Loan shall be full recourse to all assets of Borrowers, and Borrowers shall be fully and personally liable for the payment and performance of all obligations set forth in this Agreement and the other Loan Documents, including the payment of all principal, interest and other amounts thereunder.

 
ARTICLE 3.  DISBURSEMENT
 
		
	3.1    
	CONDITIONS PRECEDENT.  Lender's obligation to make any disbursements or take any other action under the Loan Documents shall be subject at all times to satisfaction of each of the following conditions precedent:

		
	(a)    
	There exists no Default or Potential Default, as defined in this Agreement, or Default as defined in any of the other Loan Documents or in the Other Related Documents; and

		
	(b)    
	Lender shall have received all Loan Documents, other documents, instruments, policies, and forms of evidence or other materials requested by Lender under the terms of this Agreement or any of the other Loan Documents; and

		
	(c)    
	Each Deed of Trust shall be a valid lien upon the Property, prior and superior to all other liens and encumbrances thereon except those approved by Lender in writing; and

		
	(d)    
	Lender shall have received from Borrowers an opinion of legal counsel in form and content satisfactory to Lender to the effect that:  (a) upon due authorization, execution and recordation or filing as may be specified in the opinion, each of the Loan Documents shall be legal, valid and binding instruments, enforceable against the makers thereof in accordance with their respective terms; (b) Borrowers are duly formed and has all requisite authority to enter into the Loan Documents; and (c) such other matters, incident to the transactions contemplated hereby, as Lender may reasonably request; and 

		
	(e)    
	Lender shall have received in form and content satisfactory to Lender estoppels and waivers from the applicable parties under the Ground Lease and other Material Contracts and Leases, as Lender may require; and 

		
	(f)    
	Lender shall have received in form and content satisfactory to Lender the KTLA Subordination and 

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Loan 1003622

Non-Disturbance Agreement; and 
		
	(g)    
	Borrowers shall have established with Lender, and funded the Security Deposit Account in the amount of $5,970,246.92, such amount representing the prepaid rent and security deposit under the KTLA Lease.

 
		
	3.2    
	ACCOUNT, PLEDGE AND ASSIGNMENT, AND DISBURSEMENT AUTHORIZATION.  The proceeds of the Loan, when qualified for disbursement, shall be deposited into the Account or otherwise disbursed to or for the benefit or account of Borrower under the terms of this Agreement; provided, however, that any direct disbursements from the Loan which are made by means of wire transfer shall be subject to the provisions of Section 3.3 below or any funds transfer agreement which is identified in Exhibit C hereto.  Disbursements hereunder may be made by Lender upon the written request of any person who has been authorized by Borrowers to request such disbursements until such time as written notice of Borrowers' revocation of such authority is received by Lender at the following address Los Angeles Loan Center, 2121 East Park Place, Suite 100, El Segundo, California 90245.  As additional security for Borrowers' performance under the Loan Documents, each Borrower hereby irrevocably pledges and assigns to Lender all monies at any time deposited in the Account.

 
		
	3.3    
	FUNDS TRANSFER DISBURSEMENTS.  Borrowers hereby authorize Lender to disburse the proceeds of the Loan made by Lender or its affiliate pursuant to the Loan Documents as requested by an authorized representative of the Borrowers to any of the accounts designated in Exhibit C.  Borrowers agree to be bound by any transfer request: (i) authorized or transmitted by Borrowers; or, (ii) made in any Borrower's name and accepted by Lender in good faith and in compliance with these transfer instructions, even if not properly authorized by Borrowers.  Borrowers further agree and acknowledge that Lender may rely solely on any bank routing number or identifying bank account number or name provided by any Borrower to effect a wire or funds transfer even if the information provided by such Borrower identifies a different bank or account holder than named by the Borrowers.  Lender is not obligated or required in any way to take any actions to detect errors in information provided by any Borrower.  If Lender takes any actions in an attempt to detect errors in the transmission or content of transfer or requests or takes any actions in an attempt to detect unauthorized funds transfer requests, Borrowers agree that no matter how many times Lender takes these actions Lender will not in any situation be liable for failing to take or correctly perform these actions in the future and such actions shall not become any part of the transfer disbursement procedures authorized under this provision, the Loan Documents, or any agreement between Lender and Borrowers.  Borrowers agree to notify Lender of any errors in the transfer of any funds or of any unauthorized or improperly authorized transfer requests within fourteen (14) days after Lender's confirmation to Borrowers of such transfer.  Lender will, in its sole discretion, determine the funds transfer system and the means by which each transfer will be made.  Lender may delay or refuse to accept a funds transfer request if the transfer would: (i) violate the terms of this authorization; (ii) require use of a bank unacceptable to Lender or prohibited by government authority; (iii) cause Lender to violate any Federal Reserve or other regulatory risk control program or guideline; and/or (iv) otherwise cause Lender to violate any applicable law or regulation.  Lender shall not be liable to any Borrower or any other parties for (i) errors, acts or failures to act of others, including other entities, banks, communications carriers or clearinghouses, through which Borrowers' transfers may be made or information received or transmitted, and no such entity shall be deemed an agent of the Lender; (ii) any loss, liability or delay caused by fires, earthquakes, wars, civil disturbances, power surges or failures, acts of government, labor disputes, failures in communications networks, legal constraints or other events beyond Lender's control; and/or (iii) any special, consequential, indirect or punitive damages, whether or not (a) any claim for these damages is based on tort or contract or (b) Lender or Borrowers knew or should have known the likelihood of these damages in any situation.  Lender makes no representations or warranties other than those expressly made in this Agreement.

 
ARTICLE 4.  INSURANCE
Borrowers shall, while any obligation of any Borrower or any Guarantor under any of the Loan Documents remains outstanding, maintain at Borrowers' sole expense, with licensed insurers approved by Lender, the following policies of insurance in form and substance satisfactory to Lender:
 
		
	4.1    
	TITLE INSURANCE; SURVEY.  A Title Policy, together with any endorsements which Lender may require, insuring Lender, in the principal amount of the Loan, of the validity and the priority of the liens of the Deeds of Trust upon each Property, subject only to matters approved by Lender in writing.  During the term of the Loan, Borrowers shall deliver to Lender, within ten (10) days of Lender's written request, such other endorsements to the Title Policy as Lender may reasonably require with respect to the Property.  A current 

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Loan 1003622

survey of the Property, certified to Lender and the title insurer, showing the boundaries of the Property by courses and distances, together with a corresponding metes and bounds description, the actual or proposed location of all improvements, encroachments and restrictions, the location and width of all easements, utility lines, rights-of-way, and building set-back lines, and notes referencing book and page numbers for the instruments granting the same.
 
		
	4.2    
	PROPERTY INSURANCE.  An All Risk/Special Form Property Insurance policy, including without limitation, theft coverage and such other coverages and endorsements as Lender may require, insuring Lender against damage to the Properties in an amount acceptable to Lender.  Such coverage should adequately insure any and all Loan collateral, whether such collateral is onsite, stored offsite or otherwise.  Lender shall be named on the policy as mortgagee and named under a Lender's Loss Payable Endorsement (form #438BFU or equivalent).

 
		
	4.3    
	FLOOD HAZARD INSURANCE.  A policy of flood insurance, as deemed necessary by Lender, in an amount required by Lender, but in no event less than the amount sufficient to meet the requirements of applicable law and governmental regulation.

 
		
	4.4    
	LIABILITY INSURANCE.  A policy of commercial general liability insurance on an occurrence basis, with coverages and limits as required by Lender, insuring against liability for injury and/or death to any person and/or damage to any property occurring on either Property.

 
		
	4.5    
	OTHER COVERAGE.  Borrowers shall provide to Lender evidence of such other reasonable insurance in such reasonable amounts as Lender may from time to time reasonably request against such other insurable hazards which at the time are commonly insured against for property similar to the subject Properties located in or around the region in which the subject Properties are located.  Such coverage requirements may include but are not limited to coverage for earthquake, acts of terrorism, business income, delayed business income, rental loss, sink hole, soft costs, tenant improvement, or environmental.

 
		
	4.6    
	GENERAL.  Borrowers shall provide to Lender insurance certificates or other evidence of coverage in form acceptable to Lender, with coverage amounts, deductibles, limits and retentions as required by Lender.  All insurance policies shall provide that the coverage shall not be cancelable or materially changed without ten (10) days prior written notice to Lender of any cancellation for nonpayment of premiums, and not less than thirty (30) days prior written notice to Lender of any other cancellation or any modification (including a reduction in coverage).  Lender shall be named under a Lender's Loss Payable Endorsement (form #438BFU or equivalent) on all insurance policies which Borrower actually maintains with respect to the Property.  All insurance policies shall be issued and maintained by insurers approved to do business in the state in which the Property is located and must have an A.M. Best Company financial rating and policyholder surplus acceptable to Lender.

 
ARTICLE 5.  REPRESENTATIONS AND WARRANTIES
 
As a material inducement to Lender's entry into this Agreement, Borrowers represent and warrant to Lender as of the Effective Date and continuing thereafter that:
 
		
	5.1    
	AUTHORITY/ENFORCEABILITY.  Borrowers are in compliance with all laws and regulations applicable to their respective organization, existence, and transaction of business and have all necessary rights and powers to own, improve, and operate their respective Property as contemplated by the Loan Documents.  Borrowers' ownership is accurately represented on the organizational chart attached as Schedule 5.1 hereto.

 
		
	5.2    
	BINDING OBLIGATIONS.  Each Borrower is authorized to execute, deliver, and perform its obligations under the Loan Documents, and such obligations shall be valid and binding obligations of such Borrower.

 
		
	5.3    
	FORMATION AND ORGANIZATIONAL DOCUMENTS.  Borrowers have delivered to Lender all formation and organizational documents of each Borrower, of the partners, joint venturers or members of each Borrower, if any, and of the Guarantors, and all such formation and organizational documents remain in full force and effect and have not been amended or modified since they were delivered to Lender.  Borrowers shall immediately provide Lender with copies of any amendments or modifications of the formation or organizational documents.

 

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Loan 1003622

		
	5.4    
	NO VIOLATION.  Borrowers' execution, delivery, and performance under the Loan Documents does not: (a) require any consent or approval not heretofore obtained under any partnership agreement, operating agreement, articles of incorporation, bylaws or other document; (b) violate any governmental requirement applicable to the Property or any other statute, law, regulation or ordinance or any order or ruling of any court or governmental entity; (c) conflict with, or constitute a breach or default or permit the acceleration of obligations under any agreement, contract, lease, or other document by which any Borrowers is or any portion of the Property is bound or regulated; and/or (d) violate any statute, law, regulation or ordinance, or any order of any court or governmental entity.  

 
		
	5.5    
	COMPLIANCE WITH LAWS; USE.  Borrowers have, and at all times shall have obtained, all permits, licenses, exemptions, and approvals necessary to occupy, operate and market the Property, and shall maintain compliance with all governmental requirements applicable to the Property and all other applicable statutes, laws, regulations and ordinances necessary for the transaction of its business.  The Property is comprised of separate legal parcels, owned in fee or ground leased, each of which is lawfully created in full compliance with all subdivision laws and ordinances and is properly zoned for the stated use of the Property as disclosed to Lender at the time of execution hereof.  Borrowers shall not initiate or acquiesce to a zoning change of the Property without prior notice to, and prior written consent from, Lender.  Furthermore, Borrowers shall not allow changes in the stated use of the Property from that disclosed to Lender at the time of execution hereof without prior notice to, and prior written consent from, Lender.

 
		
	5.6    
	LITIGATION.  Except as set forth on Schedule 5.6, there are no claims, actions, suits, or proceedings pending, or to Borrowers' knowledge, threatened against any Borrower, or Guarantor, or affecting the Property or any portion thereof.

 
		
	5.7    
	FINANCIAL CONDITION.  All financial statements and information heretofore and hereafter delivered to Lender by Borrowers, including, without limitation, information relating to the financial condition of Borrowers, the Property, the partners, joint venturers or members of each Borrower, and/or any Guarantors, fairly and accurately represent the financial condition of the subject thereof and have been prepared (except as noted therein) in accordance with generally accepted accounting principles consistently applied. Notwithstanding the use of generally accepted accounting principles, the calculation of liabilities shall NOT include any fair value adjustments to the carrying value of liabilities to record such liabilities at fair value pursuant to electing the fair value option election under FASB ASC 825-10-25 (formerly known as FAS 159, The Fair Value Option for Financial Assets and Financial Liabilities) or other FASB standards allowing entities to elect fair value option for financial liabilities. Therefore, the amount of liabilities shall be the historical cost basis, which generally is the contractual amount owed adjusted for amortization or accretion of any premium or discount.  Borrowers acknowledge and agree that Lender may request and obtain additional information from third parties regarding any of the above, including, without limitation, credit reports.

 
		
	5.8    
	NO MATERIAL ADVERSE CHANGE.  There has been no material adverse change in the financial condition of any Borrower and/or Guarantor since the dates of the latest financial statements furnished to Lender and, except as otherwise disclosed to Lender in writing or otherwise publicly disclosed in regulatory filings of a Borrower, no Borrower has entered into any material transaction which is not disclosed in such financial statements.

 
		
	5.9    
	ACCURACY.  To the best of Borrowers' actual knowledge, all reports, documents, instruments, information and forms of evidence delivered to Lender concerning the Loan or security for the Loan or required by the Loan Documents are accurate, correct and sufficiently complete to give Lender true and accurate knowledge of their subject matter, and do not contain any misrepresentation or omission.

 
		
	5.10    
	AMERICANS WITH DISABILITIES ACT COMPLIANCE.  Each Borrower represents and warrants to Lender that the Property shall be hereafter maintained in full and strict compliance with the requirements and regulations of the Americans with Disabilities Act, of July 26, 1990, Pub. L. No. 101-336, 104 Stat. 327, 42 U.S.C. § 12101, et seq., as hereafter amended.  Borrowers shall be solely responsible for all such ADA costs of compliance and reporting.

 
		
	5.11    
	TAX LIABILITY.  Each Borrower has filed all required federal, state, county and municipal tax returns and has paid all taxes and assessments owed and payable, and no Borrower has knowledge of any basis for any additional payment with respect to any such taxes and assessments.

 

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Loan 1003622

		
	5.12    
	BUSINESS LOAN.  The Loan is a business loan transaction in the stated amount solely for the purpose of carrying on the business of Borrowers and none of the proceeds of the Loan will be used for the personal, family or agricultural purposes of any kind whatsoever.

 
		
	5.13    
	GROUND LEASE.  Borrowers have delivered to Lender a true and complete copy of the Ground Lease.  The Ground Lease remains in full force and effect and has not been amended or modified since it was delivered to Lender.  Further, Borrowers represent and warrant that, to the best of Borrowers' knowledge, there exists no default or event that, but for the passage of time, and/or giving of notice, would constitute a default under the Ground Lease.

 
		
	5.14    
	COMPLIANCE WITH MATTERS OF RECORD.  Borrowers have complied, and at all times shall maintain compliance, with all requirements and restrictions of record and/or shown in the Title Policy applicable to the Property, including, without limitation, any agreements regarding parking.

 
ARTICLE 6.  HAZARDOUS MATERIALS
 
		
	6.1    
	SPECIAL REPRESENTATIONS AND WARRANTIES.  Without in any way limiting the other representations and warranties set forth in this Agreement, and after reasonable investigation and inquiry, each Borrower hereby specially represents and warrants to the best of such Borrower's knowledge, as of the date of this Agreement, as follows:

		
	(a)    
	Hazardous Materials.  Except as disclosed on Schedule 6.1 attached hereto, the Property is not and has not been a site for the use, generation, manufacture, storage, treatment, release, threatened release, discharge, disposal, transportation or presence of any oil, flammable explosives, asbestos, urea formaldehyde insulation, mold, toxic mold, radioactive materials, hazardous wastes, toxic or contaminated substances or similar materials, including, without limitation, any substances which are  “hazardous substances,” “hazardous wastes,” “hazardous materials,” “toxic substances,” “wastes,” “regulated substances,” “industrial solid wastes,” or “pollutants” under the Hazardous Materials Laws, as described below, and/or other applicable environmental laws, ordinances and regulations (collectively, the “Hazardous Materials”). “Hazardous Materials” shall not include commercially reasonable amounts of such materials used in the ordinary course of operation of the Property as office space which materials are used and stored in accordance with all applicable environmental laws, ordinances and regulations.

		
	(b)    
	Hazardous Materials Laws.  The Property is in compliance with all laws, ordinances and regulations relating to Hazardous Materials (“Hazardous Materials Laws”), including, without limitation:  the Clean Air Act, as amended, 42 U.S.C. Section 7401 et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. Section 1251 et seq.; the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Section 6901 et seq.; the Comprehensive Environment Response, Compensation and Liability Act of 1980, as amended (including the Superfund Amendments and Reauthorization Act of 1986, “CERCLA”), 42 U.S.C. Section 9601 et seq.; the Toxic Substances Control Act, as amended, 15 U.S.C. Section 2601 et seq.; the Occupational Safety and Health Act, as amended, 29 U.S.C. Section 651, the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the Mine Safety and Health Act of 1977, as amended, 30 U.S.C. Section 801 et seq.; the Safe Drinking Water Act, as amended, 42 U.S.C. Section 300f et seq.; and all comparable state and local laws, laws of other jurisdictions or orders and regulations.

		
	(c)    
	Hazardous Materials Claims.  There are no claims or actions (“Hazardous Materials Claims”) pending or threatened against any Borrower or either Property by any governmental entity or agency or by any other person or entity relating to Hazardous Materials or pursuant to the Hazardous Materials Laws.

		
	(d)    
	Border Zone Property.  Neither Property has been designated as Border Zone Property under the provisions of California Health and Safety Code, Sections 25220 et seq. and there has been no occurrence or condition on any real property adjoining or in the vicinity of either Property that could cause a Property or any part thereof to be designated as Border Zone Property.

 
		
	6.2    
	HAZARDOUS MATERIALS COVENANTS.  Borrower agrees as follows:

		
	(a)    
	No Hazardous Activities.  Except as otherwise disclosed to Lender in the reports listed on Schedule 6.1, no Borrower shall cause or permit either Property to be used as a site for the use, generation, manufacture, storage, treatment, release, discharge, disposal, transportation or presence of any Hazardous Materials.

		
	(b)    
	Compliance.  Borrowers shall comply and cause each Property to comply with all Hazardous Materials 

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Laws.
		
	(c)    
	Notices.  Borrowers shall immediately notify Lender in writing of:  (i) to the extent not otherwise disclosed to Lender in the reports listed on Schedule 6.1, the discovery of any Hazardous Materials on, under or about the Property; (ii) any knowledge by any Borrower that either Property does not comply with any Hazardous Materials Laws; (iii) any Hazardous Materials Claims; and (iv) the discovery of any occurrence or condition on any real property adjoining or in the vicinity of either Property that could cause a Property or any part thereof to be designated as Border Zone Property.

		
	(d)    
	Remedial Action.  In response to the presence of any Hazardous Materials on, under or about either Property, Borrowers shall immediately take, at Borrowers' sole expense, all remedial action required by any Hazardous Materials Laws or any judgment, consent decree, settlement or compromise in respect to any Hazardous Materials Claims.  

 
		
	6.3    
	INSPECTION BY LENDER.  Upon reasonable prior notice to Borrowers, Lender, its employees and agents, may from time to time (whether before or after the commencement of a nonjudicial or judicial foreclosure proceeding) enter and inspect the Properties for the purpose of determining the existence, location, nature and magnitude of any past or present release or threatened release of any Hazardous Materials into, onto, beneath or from the Properties.

 
		
	6.4    
	HAZARDOUS MATERIALS INDEMNITY.  EACH BORROWER HEREBY AGREES TO DEFEND, INDEMNIFY AND HOLD HARMLESS LENDER, ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS FROM AND AGAINST ANY AND ALL LOSSES, DAMAGES, LIABILITIES, CLAIMS, ACTIONS, JUDGMENTS, COURT COSTS AND LEGAL OR OTHER EXPENSES (INCLUDING, WITHOUT LIMITATION, ATTORNEYS' FEES AND EXPENSES) WHICH LENDER MAY INCUR AS A DIRECT OR INDIRECT CONSEQUENCE OF THE USE, GENERATION, MANUFACTURE, STORAGE, DISPOSAL, THREATENED DISPOSAL, TRANSPORTATION OR PRESENCE OF HAZARDOUS MATERIALS IN, ON, UNDER OR ABOUT EITHER PROPERTY. BORROWERS SHALL IMMEDIATELY PAY TO LENDER UPON DEMAND ANY AMOUNTS OWING UNDER THIS INDEMNITY, TOGETHER WITH INTEREST FROM THE DATE THE INDEBTEDNESS ARISES UNTIL PAID AT THE RATE OF INTEREST APPLICABLE TO THE PRINCIPAL BALANCE OF THE NOTE.  BORROWERS' DUTY AND OBLIGATIONS TO DEFEND, INDEMNIFY AND HOLD HARMLESS LENDER SHALL SURVIVE THE CANCELLATION OF THE NOTE AND THE RELEASE, RECONVEYANCE OR PARTIAL RECONVEYANCE OF EITHER DEED OF TRUST.  PROVIDED THAT BORROWERS SHALL HAVE NO LIABILITY TO INDEMNIFY LENDER UNDER THIS SECTION FOR ANY DAMAGES RESULTING FROM HAZARDOUS MATERIALS THAT BORROWERS CAN CONCLUSIVELY PROVE WERE FIRST INTRODUCED ONTO THE PROPERTY AFTER THE DATE OF ANY FORECLOSURE OR DEED IN LIEU OF FORECLOSURE.

 
		
	6.5    
	LEGAL EFFECT OF SECTION.  Borrowers and Lender agree that:  (a) this Article 6 is intended as Lender's written request for information (and Borrowers' response) concerning the environmental condition of the real property security as required by California Code of Civil Procedure §726.5; and (b) each provision in this Article (together with any indemnity applicable to a breach of any such provision) with respect to the environmental condition of the real property security is intended by Lender and Borrowers to be an “environmental provision” for purposes of California Code of Civil Procedure §736, and as such it is expressly understood that Borrowers' duty to indemnify Lender hereunder shall survive: (a) any judicial or non-judicial foreclosure under any Deed of Trust, or transfer of the Property in lieu thereof, (b) the release and reconveyance or cancellation of any Deed of Trust; and (c) the satisfaction of all of Borrowers' obligation under the Loan Documents.

 
ARTICLE7.  COVENANTS OF BORROWERS
 
		
	7.1    
	EXPENSES.  Borrowers shall immediately pay Lender upon demand all out-of-pocket costs and expenses incurred by Lender in connection with: (a) the preparation of this Agreement, all other Loan Documents and Other Related Documents contemplated hereby; (b) the administration of this Agreement, the other Loan Documents and Other Related Documents for the term of the Loan; and (c) the enforcement or satisfaction by Lender of any of Borrowers' obligations under this Agreement, the other Loan Documents or the Other Related Documents.  For all purposes of this Agreement, Lender's costs and expenses shall include, without limitation, all appraisal fees, cost engineering and inspection fees, legal fees and expenses, accounting fees, environmental consultant fees, auditor fees, recording fees, UCC filing fees and/or UCC vendor fees, flood certification vendor fees, tax service vendor fees, and the cost to Lender of any title insurance premiums, title surveys, reconveyance, and notary fees.  Borrowers recognize and agree that formal written appraisals of the Properties by a licensed independent appraiser may be required by Lender's internal procedures and/or federal 

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regulatory reporting requirements on, provided, no Default exists, no more than an annual basis and that Lender may, at its option and upon reasonable prior notice, require inspection of the Properties by an independent supervising architect and/or cost engineering specialist at least semi-annually.  If any of the services described above are provided by an employee of Lender, Lender's costs and expenses for such services shall be calculated in accordance with Lender's standard charge for such services.
 
		
	7.2    
	ERISA COMPLIANCE.  Borrowers shall at all times comply with the provisions of ERISA with respect to any retirement or other employee benefit plan to which it is a party as employer, and as soon as possible after any Borrower knows, or has reason to know, that any Reportable Event (as defined in ERISA) with respect to any such plan of any Borrower has occurred, it shall furnish to Lender a written statement setting forth details as to such Reportable Event and the action, if any, which the applicable Borrower proposes to take with respect thereto, together with a copy of the notice of such Reportable Event furnished to the Pension Benefit Guaranty Corporation.

 
		
	7.3    
	ANNUAL CASH FLOW TEST; REMARGINING.  On or before March 31 of each year, Borrowers must provide to Lender satisfactory evidence (including, without limitation, historical operating statements) that Net Operating Income for the twelve (12) month period ending December 31 of the prior year generates a Loan Constant of not less than ten percent (10%).  In the event that the required Loan Constant is not achieved, then the Loan Constant shall be re-determined on or before June 15 of such year using Net Operating Income for the twelve (12) month period ending March 31 of such year, and if the required ten percent (10%) Loan Constant is still not achieved, then Borrowers, on or before June 30 of such year, shall pay down the outstanding principal balance of the Loan in an amount sufficient to achieve a Loan Constant, for either the twelve (12) month period ending December 31 or March 15, of at least ten percent (10%).  Any amounts repaid may not be re-borrowed.

 
		
	7.4    
	LEASING.  Each Borrower shall use its commercially reasonable efforts to maintain all leasable space in the Property leased at no less than fair market rental rates.  Unless otherwise consented to by Lender in writing, all leases entered into after the date of this Agreement shall (i) be to unaffiliated third parties and under market terms, including, without limitation, those relating to insurance, waiver of claims, damage and destruction, condemnation, notice to mortgagee, capital equipment leases, and subordination and attornment, (ii) be upon terms and with tenants approved by Lender prior to any Borrower's execution of any such lease, provided said lease is with a Major Tenant; (iii) provide for uses of the Property that are consistent with the use of the Property as of the date hereof, and (iv) subject to modification as reasonably required by Borrower and approved by Lender, be on a standard form lease, which includes, without limitation, estoppel, subordination, attornment, and mortgagee protection provisions.

 
		
	7.5    
	SUBDIVISION MAPS.  Prior to recording any final map, plat, parcel map, lot line adjustment or other subdivision map of any kind covering any portion of the Property (collectively, “Subdivision Map”), Borrowers shall submit such Subdivision Map to Lender for Lender's review and approval, which approval shall not be unreasonably withheld. Within ten (10) Business Days after Lender's receipt of such Subdivision Map, Lender shall provide Borrowers written notice if Lender disapproves of said Subdivision Map.  Lender shall be deemed to have approved the Subdivision Map if such notice is not provided to Borrower.  Within five (5) Business Days after Lender's request, Borrowers shall execute, acknowledge and deliver to Lender such amendments to the Loan Documents as Lender may reasonably require to reflect the change in the legal description of the Property resulting from the recordation of any Subdivision Map.  In connection with and promptly after the recordation of any amendment or other modification to any Deed of Trust recorded in connection with such amendments, Borrowers shall deliver to Lender, at Borrowers' sole expense, a title endorsement to the Title Policy in form and substance satisfactory to Lender insuring the continued first priority lien of any Deed of Trust.  Subject to the execution and delivery by Borrowers of any documents required under this Section, Lender shall, if required by applicable law, sign any Subdivision Map approved, or deemed to be approved, by Lender pursuant to this Section.

 
		
	7.6    
	FURTHER ASSURANCES.  Upon Lender's request and at Borrowers' sole cost and expense, Borrowers shall execute, acknowledge and deliver any other instruments and perform any other acts necessary, desirable or proper, as determined by Lender, to carry out the purposes of this Agreement and the other Loan Documents or to perfect and preserve any liens created by the Loan Documents.

 
		
	1.    
	ASSIGNMENT.  Without the prior written consent of Lender, no Borrower shall assign its  interest under any of the Loan Documents, or in any monies due or to become due thereunder, and any assignment without such consent shall be void.

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	1.    
	MANAGEMENT AND LEASING OF PROPERTY.  Without the prior written consent of Lender, no Borrower or TRS Entity shall enter into any agreement providing for the management, leasing or operation of the Property.

 
		
	1.    
	DERIVATIVE DOCUMENTS.  On or before February 28, 2011, Borrowers shall (i) enter into a Hedge Arrangement with a notional amount not less than Forty-Six Million and No/100ths Dollars ($46,000,000.00) and a term of not less than the term of the Loan; and (ii) deliver to Lender all documents evidencing such Hedge Arrangement.  Borrowers shall maintain such Hedge Arrangement for so long as any obligation of any Borrower or any Guarantor remains outstanding under any of the Loan Documents.  If Borrowers purchase the Hedge Agreement from Lender, (i) Borrowers shall, upon receipt from Lender, execute promptly all documents evidencing such transaction, including without limitation the ISDA Master Agreement, the Schedule to the ISDA Master Agreement and the ISDA Confirmation, and (ii) Lender's interest thereunder shall be secured by the Collateral pari passu to the Loan.  If Borrowers purchases the Hedge Agreement from any provider other than Lender, such Hedge Arrangement shall not be secured by the Collateral in any manner whatsoever.

 
		
	1.    
	TRS ENTITIES.  TRS Entities shall not own any properties or assets other than personal property and lease/contract rights associated with the operation of the Property, including those, transferred to the TRS Entities pursuant to those Transfer, Assignment and Assumption Agreements, dated June 29, 2010, between Borrowers and TRS Entities, and encumbered by the Deeds of Trust, as applicable.  Except as may be permitted under the Deed of Trust, Borrowers and/or TRS Entities shall not cause or permit any Person other than Borrowers or TRS Entities to (i) hold any ownership interests in or to any real or personal property associated with the operation of the Property, or (ii) except as set forth in Section 7.4 above, enter into any leases, license agreements, services agreements, or any other contractual agreements pursuant to which revenues are derived in connection with the operation of the Property; provided, however, that TRS Entities may enter into leases and licenses with terms of one (1) year or less.  Borrowers and TRS Entities shall comply with all of the covenants and other provisions of this Agreement and the other Loan Documents that relate to the Property or any interest therein held by any TRS Entity, to the same extent as if Borrowers owned such interest.

 
 
		
	1.    
	NO ENCUMBRANCES.  Borrowers and TRS Entities shall not (a) create, assume, incur, permit, or suffer to exist any Lien on (i) any Collateral, and/or (ii) any direct or indirect ownership interest in any Borrower or TRS Entity, except for the liens of the Deeds of Trust; or (b) permit any Collateral or any direct or indirect ownership interest of any Borrower or TRS Entity to be subject to a negative pledge.

 
 
		
	1.    
	MODIFICATIONS OF ORGANIZATIONAL DOCUMENTS.  Borrowers, TRS Entities, and Guarantor shall not, amend, supplement, restate, or otherwise modify in any respect its charter, articles of incorporation or by-laws, operating agreement, partnership agreement or other organizational document without the prior written consent of the Lender (which shall not be unreasonably withheld), unless such amendment, supplement, restatement or other modification is required (a) under the Internal Revenue Code or other Applicable Law or (b) to maintain the REIT's status as a REIT.

 
		
	1.    
	MATERIAL CONTRACTS.  Except pursuant to the Reciprocal Easement Agreement, the Parking Lease, the TRS Documents, and Blanket Insurance, Borrowers and TRS Entities shall not do any of the following without the Lender's prior written consent (not to be unreasonably withheld of delayed): (i) enter into any Material Contract, including any new or replacement property management agreement, ground lease, or parking lease; (ii) reduce or extend the term of, increase the charges or fees payable by such party under, decrease the charges or fees payable to such party under, or otherwise modify or amend in any respect, any Material Contract; (iii) surrender, modify or amend in any material respect, or terminate, any existing Material Contract, including, without limitation, the Ground Lease (except to the extent of a termination resulting from a default of lessor thereunder); or (iv) breach any provision of any Material Contract.

 
		
	1.    
	INDEBTEDNESS.  Borrowers and TRS Entities shall not (a) assume, create, incur or suffer to exist any additional indebtedness or other material obligation, other than (i) non-interest bearing ordinary course obligations (e.g. trade payables or accruals) in an aggregate amount less than Three Million and No/100ths Dollars ($3,000,000.00), and incurred in connection with Borrowers' ordinary course of business and (ii) any Hedge Agreements entered into with Wells Fargo Bank, National Association as counterparty; or (b) directly or indirectly guaranty the obligations of any other person or entity.

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Loan 1003622

 
		
	1.    
	TRANSACTIONS WITH AFFILIATES AND LIMITATIONS ON DISTRIBUTIONS.  With the exception of the Reciprocal Easement Agreement, the Parking Lease, the TRS Documents, and Blanket Insurance, Borrowers and TRS Entities shall not permit to exist or enter into any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate of any party to the Loan, except transactions in the ordinary course of and pursuant to the reasonable requirements of the business of the Borrowers or the TRS Entities and upon fair and reasonable terms which are no less favorable to the Borrowers and/or the TRS Entities than would be obtained in a comparable arm's length transaction with a Person that is not an Affiliate.  Notwithstanding the forgoing, no payments of any kind (including without limitation, distributions to any Borrowers' members) may be made with respect to any Affiliate if a Default or Potential Default exists or would result therefrom.

 
		
	1.    
	SECURITY DEPOSITS AND PREPAID RENT.  

		
	(a)    
	Borrowers shall directly deliver, or cause to be directly delivered to Lender, any security deposit, prepayment of rent, or any other amount in excess of Two Hundred Thousand and No/100ths Dollars ($200,000.00), payable to any Borrower, or TRS Entity, pursuant to any lease, including, without limitation, (i) all prepaid rent paid pursuant that certain Lease by and between Bronson, as successor in interest to Sunset Studios Holdings, LLC, a Delaware limited liability company, and KTLA, INC., a California corporation (“KTLA”), dated as of January 30, 2008 (as amended from time to time, the “KTLA Lease”); and (ii) the $225,661.00 security deposit required under Section 2.5 of that certain First Amendment to Lease by and between Bronson, as successor in interest to Sunset Studios Holdings, LLC, a Delaware limited liability company, and KTLA, dated as of June 5, 2009.  Lender shall deposit such amounts into the Security Deposit Account.

		
	(b)    
	Borrowers and TRS Entities hereby grant and convey to Lender a security interest in and to all of Borrowers' and TRS Entities' right, title and interest in and to the Security Deposit Account, the subaccounts created thereunder and all sums now or hereafter on deposit in or payable or withdrawable from the Security Deposit Account.  As additional security for Borrowers' performance under the Loan Documents, each Borrower and TRS Entity hereby irrevocably pledges and assigns to Lender all monies at any time deposited in the Security Deposit Account.  Borrowers and TRS Entities acknowledge that Lender shall indicate on Lender's records for the Security Deposit Account, that Lender has a security interest therein.  The Security Deposit Account shall be in the name of Borrowers for the benefit of Lender or in such other name as Lender may direct in writing.  The Security Deposit Account shall be assigned the federal tax identification number of Borrowers.  

		
	(c)    
	Borrowers and TRS Entities shall have no right or ability to affect withdrawals from the Security Deposit Account or the subaccounts created thereunder, except to the extent funds are required to be returned to KTLA or in accordance with the provisions of this Agreement, and shall have no right to exercise dominion or control over the Security Deposit Account or the subaccounts created thereunder.  Borrower shall pay to Lender all reasonable fees, costs and expenses charged, paid or incurred by Lender from time to time in connection with any request of Borrowers for a disbursement of funds from the Security Deposit Account or otherwise.  Borrowers authorize Lender to disburse directly to Lender, from the Security Deposit Account or from funds to be disbursed to Borrowers from the Security Deposit Account, such sums as may be necessary, at any time and from time to time, to pay all such fees, costs and expenses.  For so long as (i) there remains prepaid rent under the KTLA Lease on deposit in the Security Deposit Account; and (ii) there exists no Default or Potential Default, Lender shall disburse, from the Security Deposit Account, to Bronson or its designee, each month, an amount equal to $271,374.87 (the “KTLA Deferred Monthly Rent Payment”).

 
ARTICLE 8.  REPORTING COVENANTS
 
		
	1.    
	FINANCIAL INFORMATION.  Borrowers shall maintain or cause to be maintained a system of accounting established and administered in accordance with sound business practices and consistent with past practice to permit preparation of quarterly and, to the extent applicable, annual financial statements, each in conformity with GAAP, and each of the financial statements described below shall be prepared for Borrower from such system and records.  

		
	(a)    
	Borrowers shall deliver to Lender, as soon as available, but in no event later than ninety (90) days after Borrowers' fiscal year end, a current financial statement (including, without limitation, an income and expense statement and balance sheet) signed by Mark T. Lammas, or another financial officer reasonably acceptable to Lender, together with any other financial information including, without limitation, quarterly financial statements including balance sheet, covenant compliance and liquidity 

16

Loan 1003622

information, annual financial statements, cash flow projections, quarterly operating statements, project level financial reports, annual budgets, and such additional financial and other information as requested by Lender for any Borrower, TRS Entity, and/or Guarantor.
		
	(b)    
	Within forty-five (45) days of Lender's request, Borrowers shall also deliver to Lender such quarterly and other financial information regarding any persons or entities in any way obligated on the Loan as Lender may reasonably specify.  If audited financial information is prepared, Borrowers shall deliver to Lender copies of that information within thirty (30) days of its final preparation.  Except as otherwise agreed to by Lender, all such financial information shall be prepared in accordance with generally accepted accounting principles consistently applied.

 
		
	1.    
	BOOKS AND RECORDS.  Each Borrower shall maintain complete books of account and other records for the Property owned by such Borrower and for disbursement and use of the proceeds of the Loan, and the same shall be available for inspection and copying by Lender upon reasonable prior notice.

 
		
	1.    
	LEASING REPORTS.  Each Borrower shall deliver to Lender quarterly rent rolls, leasing schedules and reports, operating statements and/or such other leasing information as Lender shall reasonably request with respect to the Property, each in form and substance reasonably satisfactory to Lender.

 
		
	1.    
	OPERATING STATEMENTS FOR PROPERTY.  Until such time as the Note is paid in full, Borrower shall deliver to Lender on the forty-fifth (45th) day of each quarter an “Operating Statement” which shows in detail the amounts and sources of Gross Operating Income received by or on behalf of Borrower and the amounts and purposes of Permitted Operating Expenses paid by or on behalf of Borrower with respect to the Property for the previous quarter.

 
		
	2.    
	NOTICES UNDER MATERIAL CONTRACT.  Borrowers shall immediately provide Lender with copies of any notices given to a Borrower pursuant to any Material Contract.

 
ARTICLE 9.  DEFAULTS AND REMEDIES
 
		
	1.    
	DEFAULT.  The occurrence of any one or more of the following shall constitute an event of default (“Default”) under this Agreement and the other Loan Documents:

		
	(a)    
	Failure to Make Payments When Due.  Borrower shall fail to pay (i) any amount due on the Maturity Date, (ii) any principal when due, or (iii) any interest on the Loan (or any fee or other amount payable under the Fee Letter or any Loan Documents) within five (5) days after the date such interest, fee or other amount first became due, provided that such limited 5-day cure period shall only be available to Borrower two times per calendar year; or 

		
	(b)    
	Performance of Obligations.  Any Borrower's failure to perform any obligation in addition to those in Section 9.1(a) above or separately listed below in this Section 9.1 under any of the Loan Documents within thirty (30) days of the date of such failure; provided, however, that if a cure period is provided for the remedy of such failure, such Borrower's failure to perform will not constitute a Default until such date as the specified cure period expires, if any; or

		
	(c)    
	Use.  The prohibition, enjoining or interruption of any Borrower's right to occupy, use or lease the Property for a continuous period of more than thirty (30) days; or

		
	(d)    
	Condemnation; Attachment.  (i) The condemnation, seizure or appropriation of, or occurrence of an uninsured casualty with respect to any material portion of the Property; or (ii) the sequestration or attachment of, or any levy or execution upon any of the Property, any other collateral provided by Borrower under any of the Loan Documents, or any substantial portion of the other assets of any Borrower, which sequestration, attachment, levy or execution is not released, expunged or dismissed prior to the earlier of thirty (30) days or the sale of the assets affected thereby; or

		
	(e)    
	Representations and Warranties.  (i) The failure of any material representation or warranty of any Borrower in any of the Loan Documents and the continuation of such failure for more than ten (10) days after written notice to Borrower from Lender requesting Borrower cure such failure; or

		
	(f)    
	Voluntary Bankruptcy; Insolvency; Dissolution.  (i) The filing of a petition by any Borrower for relief under the Bankruptcy Code, or under any other present or future state or federal law regarding bankruptcy, reorganization or other debtor relief law; (ii) the filing of any pleading or an answer by any Borrower in any involuntary proceeding under the Bankruptcy Code or other debtor relief law which admits the jurisdiction of the court or the petition's material allegations regarding any Borrower's insolvency; (iii) a general assignment by any Borrower for the benefit of creditors; or (iv) any Borrower applying for, or the appointment of, a receiver, trustee, custodian or liquidator of such Borrower or any 

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of its property; or
		
	(g)    
	Involuntary Bankruptcy.  The failure of any Borrower to effect a full dismissal of any involuntary petition under the Bankruptcy Code or under any other debtor relief law that is filed against such Borrower or in any way restrains or limits such Borrower or Lender regarding the Loan or the Property, prior to the earlier of the entry of any court order granting relief sought in such involuntary petition, or thirty (30) days after the date of filing of such involuntary petition; or

		
	(h)    
	Guarantors; TRS Entities.  The occurrence of any of the events specified in Sections 9.1 (f) and/or 9.1 (g) as to Guarantor, the REIT, and/or either TRS Entity; or

		
	(i)    
	Change In Management or Control.  The occurrence of any Change of Control of Guarantor or either TRS Entity; or

		
	(j)    
	Loss of Priority.  The failure at any time of  Deed of Trust to be valid first lien upon the applicable Property or any portion thereof, other than as a result of any release or reconveyance of the applicable Deed of Trust with respect to all or any portion of the Property pursuant to the terms and conditions of this Agreement; or

		
	(k)    
	Hazardous Materials.  The discovery of any significant Hazardous Materials in, on or about the Property subsequent to the Effective Date to the extent not previously disclosed to Lender in the reports listed on Schedule 6.1.  Any such Hazardous Materials shall be “significant” for this purpose if said Hazardous Materials, in Lender's sole discretion, have a materially adverse impact on the value of the Property; or

		
	(l)    
	Default Under Ground Lease.  The occurrence of a default under the Ground Lease after the expiration of all applicable notice and cure periods, if any; or

		
	(m)    
	Ownership Or Property Transfer.  Any violation of 10.1 and/or 10.2; or

		
	(n)    
	Default Under Guaranty.  The occurrence of a default under any guaranty now or hereafter executed in connection with the Loan, including, without limitation, Guarantor's failure to perform any covenant, condition, or obligation thereunder, provided, if such default is non-monetary, it shall not be a Default hereunder if such default is cured within thirty (30) days following the occurrence of such default; or

		
	(o)    
	Default Under Existing Guarantor Indebtedness.  The occurrence of a default under any agreement to which Guarantor is a party which (i) results in acceleration of any amounts outstanding thereunder; and (ii) evidences or secures recourse indebtedness greater than Twenty Million and No/100ths Dollars ($20,000,000.00); provided, however, that such event shall not constitute a Default hereunder if (i) such event does not otherwise cause a Default under subsection (n) above (i.e. breach of a Guarantor Financial Covenant), and (ii) within ten (10) Business Days of such event, Guarantor pays to Lender an amount equal to fifty percent (50%) of Guarantor's liability under Section 1 of the Guaranty (presuming there was a loan acceleration on such date), such amount shall be applied to repay the principal balance of the Loan.  Amounts repaid may not be re-borrowed; or

		
	(p)    
	Default Under Unsecured Indemnity Agreement.  The occurrence of a default under that certain Hazardous Materials Indemnity Agreement (Unsecured) executed by Guarantor, as Indemnitor, in favor of Lender, and dated concurrently herewith, including without limitation indemnitor's failure to perform any covenant, condition, or obligation thereunder, provided, if such default is non-monetary, it shall not be a Default hereunder if such default is cured within thirty (30) days following the occurrence of such default; or

		
	(q)    
	Default Under Hedge Arrangement.  The occurrence of a default by Borrowers or a termination event with respect to Borrowers under a Hedge Arrangement, provided; if such default is non-monetary, it shall not be a Default hereunder if such default is cured within thirty (30) days following the occurrence of such default.

 
		
	1.    
	ACCELERATION UPON DEFAULT; REMEDIES.  Upon the occurrence of any Default specified in this Article, Lender may, at its sole option, declare all sums owing to Lender under the Note, this Agreement and the other Loan Documents immediately due and payable.  Upon such acceleration, Lender may, in addition to all other remedies permitted under this Agreement and the other Loan Documents and at law or equity, apply any sums in the Account and/or the Security Deposit Account to the sums owing under the Loan Documents and any and all obligations of Lender to fund further disbursements under the Loan shall terminate.

 
		
	1.    
	DISBURSEMENTS TO THIRD PARTIES.  Upon the occurrence of a Default occasioned by any Borrower's failure to pay money to a third party as required by this Agreement, Lender may but shall not be obligated to make such payment from the Loan proceeds or other funds of Lender.  If such payment is made from proceeds of the Loan, Borrowers shall immediately deposit with Lender, upon written demand, an amount equal to such payment.  If such payment is made from funds of Lender, Borrowers shall immediately repay such funds upon written demand of Lender.  In either case, the Default with respect to which any such payment has been made 

18

Loan 1003622

by Lender shall not be deemed cured until such deposit or repayment (as the case may be) has been made by Borrower to Lender.
 
		
	1.    
	REPAYMENT OF FUNDS ADVANCED.  Except as otherwise provided in Section 7.1 above, any funds expended by Lender in the exercise of its rights or remedies under this Agreement and the other Loan Documents shall be payable to Lender upon demand, together with interest at the rate applicable to the principal balance of the Note from the date the funds were expended.  All such indebtedness shall be deemed to be amounts expended and shall be deemed Secured Obligations secured by the Loan Documents

 
		
	1.    
	RIGHTS CUMULATIVE, NO WAIVER.  All Lender's rights and remedies provided in this Agreement and the other Loan Documents, together with those granted by law or at equity, are cumulative and may be exercised by Lender at any time.  Lender's exercise of any right or remedy shall not constitute a cure of any Default unless all sums then due and payable to Lender under the Loan Documents are repaid and Borrowers have cured all other Defaults.  No waiver shall be implied from any failure of Lender to take, or any delay by Lender in taking, action concerning any Default or failure of condition under the Loan Documents, or from any previous waiver of any similar or unrelated Default or failure of condition.  Any waiver or approval under any of the Loan Documents must be in writing and shall be limited to its specific terms.

 
ARTICLE 10.  DUE ON SALE/ENCUMBRANCE
 
		
	1.    
	PROPERTY TRANSFERS.

		
	(a)    
	Prohibited Property Transfers.  Borrower shall not cause or permit any Transfer of all or any part of or any direct or indirect legal or beneficial interest in the Property or the Collateral (collectively, a “Prohibited Property Transfer”), including, without limitation, (i) a Lease of all or a material part of the Property for any purpose other than actual occupancy by a space tenant; and (ii) the Transfer of all or any part of Borrower's right, title and interest in and to any Lease or lease payments.

		
	(b)    
	Permitted Property Transfers.  Notwithstanding the foregoing, none of the following Transfers shall be deemed to be a Prohibited Property Transfer: (i) a Transfer which is expressly permitted under this Agreement; (ii) a Lease which is permitted under the terms of the Loan Documents; and (iii) the sale of inventory in the ordinary course of business.

 
		
	1.    
	EQUITY TRANSFERS; PERMITTED OWNERSHIP CHANGES. No Borrower or TRS Entity will Transfer, or contract to Transfer, or permit any Transfer of, any direct or indirect ownership interests in a Borrower or Borrowers, a TRS Entity or TRS Entities, the REIT or the Guarantor, except as permitted below.  Notwithstanding the restriction on Transfer set forth in Section 10.1 above or the immediately preceding sentence (and notwithstanding the restriction on Transfer set forth in the Deed of Trust), the following Transfers of direct or indirect ownership interests shall be permitted without Lender's consent:  (i) transfers of direct or indirect interests in any Borrower to the Guarantor or an Affiliate of the Guarantor, provided that the Guarantor shall continue to Control Borrowers, and that the REIT shall continue to Control Borrowers, the Guarantor and the TRS Entities; (ii) issuances and transfers (including pledges) of securities, options, warrants or other interests in the REIT, whether directly or indirectly; (iii) issuances and transfers (including pledges) of partnership interests and other interests in the Guarantor, whether directly or indirectly, provided that the REIT shall continue to Control Borrowers, the Guarantor and the TRS Entities; and (iv) a merger, consolidation or exchange of securities to which the REIT or the Guarantor is a party, as applicable, provided that the surviving entity shall be the REIT or the Guarantor, as applicable, and that the REIT shall continue to Control Borrowers, the Guarantor and the TRS Entities.  Borrowers shall promptly notify Lender of the occurrence of any Transfers described above (other than transfers of publicly traded stock in the REIT), and shall provide Lender with any information and/or documentation reasonably requested by Lender in connection with any such Transfer

 
ARTICLE 11.  MISCELLANEOUS PROVISIONS
 
		
	1.    
	INDEMNITY.  BORROWERS HEREBY AGREE TO DEFEND, INDEMNIFY AND HOLD HARMLESS LENDER, ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS FROM AND AGAINST ANY AND ALL LOSSES, DAMAGES, LIABILITIES, CLAIMS, ACTIONS, JUDGMENTS, COURT COSTS AND LEGAL OR OTHER EXPENSES (INCLUDING, WITHOUT LIMITATION, ATTORNEYS' FEES AND EXPENSES) WHICH LENDER MAY INCUR AS A DIRECT OR INDIRECT CONSEQUENCE OF: (A) THE PURPOSE TO WHICH BORROWER APPLIES THE LOAN PROCEEDS; (B) THE FAILURE OF ANY BORROWER TO PERFORM ANY OBLIGATIONS AS AND WHEN REQUIRED BY THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS; (C) ANY FAILURE AT ANY TIME OF ANY OF ANY 

19

Loan 1003622

BORROWER'S REPRESENTATIONS OR WARRANTIES TO BE TRUE AND CORRECT; OR (D) ANY ACT OR OMISSION BY ANY BORROWER, CONSTITUENT PARTNER OR MEMBER OF ANY BORROWER, ANY CONTRACTOR, SUBCONTRACTOR OR MATERIAL SUPPLIER, ENGINEER, ARCHITECT OR OTHER PERSON OR ENTITY WITH RESPECT TO ANY OF THE PROPERTY.  BORROWER SHALL IMMEDIATELY PAY TO LENDER UPON DEMAND ANY AMOUNTS OWING UNDER THIS INDEMNITY, TOGETHER WITH INTEREST FROM THE DATE THE INDEBTEDNESS ARISES UNTIL PAID AT THE RATE OF INTEREST APPLICABLE TO THE PRINCIPAL BALANCE OF THE NOTE. BORROWERS' DUTY AND OBLIGATIONS TO DEFEND, INDEMNIFY AND HOLD HARMLESS LENDER SHALL SURVIVE CANCELLATION OF THE NOTE AND THE RELEASE, RECONVEYANCE OR PARTIAL RECONVEYANCE OF THE DEEDS OF TRUST.
 
		
	1.    
	Additional Security Interest.  Each Borrower hereby grants and assigns to Lender a security interest, to secure payment and performance of all obligations, in all of it's right, title and interest, now or hereafter acquired, to the payment of money from Lender to such Borrower under any swap, derivative, foreign exchange or hedge transaction or arrangement (or similar transaction or arrangement howsoever described or defined) at any time entered into between any Borrower and Lender in connection with the Loan 

 
		
	1.    
	FORM OF DOCUMENTS.  The form and substance of all documents, instruments, and forms of evidence to be delivered to Lender under the terms of this Agreement and any of the other Loan Documents shall be subject to Lender's approval and shall not be modified, superseded, or terminated in any respect without Lender's prior written approval, which shall not be unreasonably withheld or delayed.

 
		
	1.    
	NO THIRD PARTIES BENEFITED.  No person other than Lender and Borrowers and their permitted successors and assigns shall have any right of action under any of the Loan Documents.

 
		
	1.    
	NOTICES.  All notices, demands, or other communications under this Agreement and the other Loan Documents shall be in writing and shall be delivered to the appropriate party at the address set forth on the signature page of this Agreement (subject to change from time to time by written notice to all other parties to this Agreement).  All notices, demands or other communications shall be considered as properly given if delivered personally or sent by first class United States Postal Service mail, postage prepaid, except that notice of Default may be sent by certified mail, return receipt requested, or by Overnight Express Mail or by overnight commercial courier service, charges prepaid. Notices so sent shall be effective three (3) days after mailing, if mailed by first class mail, and otherwise upon receipt; provided, however, that non-receipt of any communication as the result of any change of address of which the sending party was not notified or as the result of a refusal to accept delivery shall be deemed receipt of such communication.

 
		
	1.    
	ATTORNEY-IN-FACT.  Following any Default hereunder, each Borrower hereby irrevocably appoints and authorizes Lender, as such Borrower's attorney-in-fact, which agency is coupled with an interest, to execute and/or record in Lender's or such Borrower's name any notices, instruments or documents that Lender deems appropriate to protect Lender's interest under any of the Loan Documents.

 
		
	1.    
	ACTIONS.  Each Borrower agrees that Lender, in exercising the rights, duties, or liabilities of Lender or any Borrower under the Loan Documents, may commence, appear in or defend any action or proceeding purporting to affect the Property, or the Loan Documents and Borrowers shall immediately reimburse Lender upon demand for all such out-of-pocket expenses so incurred or paid by Lender, including, without limitation, attorneys' fees and expenses and court costs.

 
		
	1.    
	RIGHT OF CONTEST.  Borrowers may contest in good faith any claim, demand, levy, or assessment by any person other than Lender which would constitute a Default if: (a) Borrowers pursue the contest diligently, in a manner which Lender determines is not prejudicial to Lender, and does not impair the rights of Lender under any of the Loan Documents; and (b) Borrowers deposit with Lender any funds or other forms of assurance which Lender in good faith determines from time to time appropriate to protect Lender from the consequences of the contest being unsuccessful.  Borrowers' compliance with this Section shall operate to prevent such claim, demand, levy or assessment from becoming a Default.

 
		
	1.    
	RELATIONSHIP OF PARTIES.  The relationship of Borrowers and Lender under the Loan Documents is, and shall at all times remain, solely that of borrower and lender, and Lender neither undertakes nor assumes any responsibility or duty to Borrowers or to any third party with respect to the Property, except as expressly provided in this Agreement and the other Loan Documents.

20

Loan 1003622

 
		
	1.    
	DELAY OUTSIDE LENDER'S CONTROL.  Lender shall not be liable in any way to any Borrower or any third party for Lender's failure to perform or delay in performing under the Loan Documents (and Lender may suspend or terminate all or any portion of Lender's obligations under the Loan Documents) if such failure to perform or delay in performing results directly or indirectly from, or is based upon, the action, inaction, or purported action, of any governmental or local authority, or because of war, rebellion, insurrection, strike, lock-out, boycott or blockade (whether presently in effect, announced or in the sole judgment of Lender deemed probable), or from any Act of God or other cause or event beyond Lender's control.

 
		
	1.    
	ATTORNEYS' FEES AND EXPENSES; ENFORCEMENT.  If any attorney is engaged by Lender to enforce or defend any provision of this Agreement, any of the other Loan Documents or Other Related Documents, or as a consequence of any Default under the Loan Documents, with or without the filing of any legal action or proceeding, and including, without limitation, any fees and expenses incurred in any bankruptcy proceeding of any Borrower, then Borrowers shall immediately pay to Lender, upon demand, the amount of all attorneys' fees and expenses and all costs incurred by Lender in connection therewith, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal balance of the Note as specified therein, unless Borrowers are the prevailing party in any action.

 
		
	1.    
	IMMEDIATELY AVAILABLE FUNDS.  Unless otherwise expressly provided for in this Agreement, all amounts payable by any Borrower to Lender shall be payable only in United States currency, immediately available funds.

 
		
	1.    
	LENDER'S CONSENT.  Wherever in this Agreement there is a requirement for Lender's consent and/or a document to be provided or an action taken “to the satisfaction of Lender”, it is understood by such phrase that Lender shall exercise its consent, right or judgment in a reasonable manner given the specific facts and circumstance applicable at the time.

 
		
	1.    
	LOAN SALES AND PARTICIPATION; DISCLOSURE OF INFORMATION.  At no additional cost, expense or liability to Borrowers, Borrowers agree that Lender may elect, at any time, to sell, assign or grant participation in all or any portion of its rights and obligations under the Loan Documents, and that any such sale, assignment or participation may be to one or more financial institutions, private investors, and/or other entities, at Lender's sole discretion (“Participant”).  Borrowers further agree that Lender may disseminate to any such actual or potential purchaser(s), assignee(s) or participant(s) all documents and information (including, without limitation, all financial information) which has been or is hereafter provided to or known to Lender with respect to:  (a) the Property and its operation; (b) any party connected with the Loan (including, without limitation, any Borrower, any partner, joint venturer or member of any Borrower, any constituent partner, joint venturer or member of any Borrower, any Guarantor and/or any TRS Entity); and/or (c) any lending relationship other than the Loan which Lender may have with any party connected with the Loan.  In the event of any such sale, assignment or participation, Lender and the parties to such transaction shall share in the rights and obligations of Lender as set forth in the Loan Documents only as and to the extent they agree among themselves.  In connection with any such sale, assignment or participation, Borrowers further agree that the Loan Documents shall be sufficient evidence of the obligations of Borrowers to each purchaser, assignee, or participant, and upon written request by Lender, either Borrower or Borrowers shall enter into such amendments or modifications to the Loan Documents as may be reasonably required in order to evidence any such sale, assignment or participation.  The indemnity obligations of Borrowers under the Loan Documents shall also apply with respect to any purchaser, assignee or participant.

Anything in this Agreement to the contrary notwithstanding, and without the need to comply with any of the formal or procedural requirements of this Agreement, including this Section, any lender may at any time and from time to time pledge and assign all or any portion of its rights under all or any of the Loan Documents to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from its obligations thereunder.  
 
		
	1.    
	CAPITAL ADEQUACY.  If Lender or any Participant in the Loan, or either of them, determines that compliance with any law or regulation or with any guideline or request from any central bank or other governmental agency (whether or not having the force of law) affects or would affect the amount of capital required or expected to be maintained by Lender or such Participant, or any corporation controlling Lender or such Participant, as a consequence of, or with reference to, Lender's or such Participant's or such corporation's commitments or its making or maintaining advances below the rate which Lender or such Participant or such corporation controlling 

21

Loan 1003622

Lender could have achieved but for such compliance (taking into account the policies of Lender or such Participant or corporation with regard to capital), then Borrowers shall, from time to time, within thirty (30) calendar days after written demand by Lender or such Participant, pay to Lender or such Participant additional amounts sufficient to compensate Lender or such Participant or such corporation controlling Lender to the extent that Lender determines such increase in capital is allocable to Lender's obligations hereunder.  A certificate as to such amounts, submitted to Borrowers by Lender or such Participant, shall be conclusive and binding for all purposes, absent manifest error.
 
		
	1.    
	LENDER'S AGENTS.  Lender may designate an agent or independent contractor to exercise any of Lender's rights under this Agreement and any of the other Loan Documents.  Any reference to Lender in any of the Loan Documents shall include Lender's agents, employees or independent contractors.  Borrowers shall pay the costs of such agent or independent contractor either directly to such person or to Lender in reimbursement of such costs, as applicable.

 
		
	1.    
	TAX SERVICE.  Lender is authorized to secure, at Borrowers' expense, a tax service contract with a third party vendor which shall provide tax information on the Property satisfactory to Lender.

 
		
	1.    
	BORROWERS' WAIVER.  Borrowers hereby waive all rights under California Civil Code Section 2822, which provides as follows:  “(a) The acceptance, by a creditor, of anything in partial satisfaction of an obligation, reduces the obligation of a surety thereof, in the same measure as that of the principal, but does not otherwise affect it.  However, if the surety is liable upon only a portion of an obligation and the principal provides partial satisfaction of the obligation, the principal may designate the portion of the obligation that is to be satisfied; and (b) For purposes of this section and Section 2819, an agreement by a creditor to accept from the principal debtor a sum less than the balance owed on the original obligation, without the prior consent of the surety and without any other change to the underlying agreement between the creditor and principal debtor, shall not exonerate the surety for the lesser sum agreed upon by the creditor and principal debtor.”

 
		
	1.    
	SEVERABILITY.  If any provision or obligation under this Agreement and the other Loan Documents shall be determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable, that provision shall be deemed severed from the Loan Documents and the validity, legality, and enforceability of the remaining provisions or obligations shall remain in full force as though the invalid, illegal, or unenforceable provision had never been a part of the Loan Documents, provided, however, that if the rate of interest or any other amount payable under the Note or this Agreement or any other Loan Document, or the right of collectibility therefore, are declared to be or become invalid, illegal or unenforceable, Lender's obligations to make advances under the Loan Documents shall not be enforceable by any Borrower.

 
		
	1.    
	HEIRS, SUCCESSORS AND ASSIGNS.  Except as otherwise expressly provided under the terms and conditions of this Agreement, the terms of the Loan Documents shall bind and inure to the benefit of the heirs, successors and assigns of the parties.

 
		
	1.    
	TIME.  Time is of the essence of each and every term of this Agreement.

 
		
	1.    
	HEADINGS.  All article, section or other headings appearing in this Agreement and any of the other Loan Documents are for convenience of reference only and shall be disregarded in construing this Agreement and any of the other Loan Documents.

 
		
	1.    
	GOVERNING LAW.  This Agreement shall be governed by, and construed and enforced in accordance with the laws of the State of California, except to the extent preempted by federal laws.  Borrower and all persons and entities in any manner obligated to Lender under the Loan Documents consent to the jurisdiction of any federal or state court within the State of California having proper venue and also consent to service of process by any means authorized by California or federal law.

 
		
	1.    
	USA PATRIOT ACT NOTICE. COMPLIANCE.  The USA Patriot Act of 2001 (Public Law 107-56) and federal regulations issued with respect thereto require all financial institutions to obtain, verify and record certain information that identifies individuals or business entities which open an “account” with such financial institution.  Consequently, Lender may from time-to-time request, and Borrowers shall provide to Lender, Borrower's respective name, address, tax identification number and/or such other identification information as shall be necessary for Lender to comply with federal law.  An “account” for this purpose may include, without limitation, a deposit account, cash management service, a transaction or asset account, a credit account, a loan or other 

22

Loan 1003622

extension of credit, and/or other financial services product.
 
		
	1.    
	INTEGRATION; INTERPRETATION.  The Loan Documents contain or expressly incorporate by reference the entire agreement of the parties with respect to the matters contemplated therein and supersede all prior negotiations or agreements, written or oral.  The Loan Documents shall not be modified except by written instrument executed by all parties.  Any reference to the Loan Documents includes any amendments, renewals, or extensions now or hereafter approved by Lender in writing.

 
		
	1.    
	JOINT AND SEVERAL LIABILITY.  The liability of all persons and entities obligated in any manner under this Agreement and any of the Loan Documents shall be joint and several.

 
		
	1.    
	SPECIAL REPRESENTATIONS, COVENANTS AND WAIVERS.  

		
	(a)    
	The parties hereto recognize and acknowledge that a Borrower may from time to time have advanced to it under the Loan an aggregate principal amount in excess of the borrowing that would otherwise be supported by Collateral owned by such Borrower and encumbered under a Deed of Trust.  The Loan has been established in the manner provided herein (and with the possible result referred to in the foregoing sentence) at the express request of, and to accommodate the administrative and operational requirements of, the Borrowers and Guarantor.  Specifically, the Loan might have been established to provide a limit on direct borrowings by each Borrower consistent with the specific borrowing base limitations imposed by Collateral owned by such Borrower, with additional credit needs of such Borrower in excess thereof being accommodated by inter-company loans from Borrower(s) with excess borrowing capacity to such other Borrower requiring additional funds.  However, for administrative and operational reasons imposed by the Borrowers and Guarantor, as aforesaid, the Loan has been established as provided herein, but with the intention, as confirmed in subsection (b) below, that the Borrowers ultimately share, among themselves, repayment obligations under the Loan to the same extent as if such borrowings had been made under the alternative disbursement procedure described in the preceding sentence.

		
	(b)    
	Without limiting the joint and several liability of each Borrower to the Lender under this Agreement, the Note and other Loan Documents, each Borrower hereby severally covenants and commits to indemnify and hold harmless each other Borrower from and against any liability (in the form of indebtedness repaid to the Lender under the Loan, including foreclosure under any Deed of Trust) incurred by such other Borrower to the Lender under or pursuant to this Agreement or the Note in respect of such indebtedness incurred by the indemnifying Borrower.  The effect of the foregoing shall be that, as between the Borrowers, each shall be responsible to reimburse the other Borrower to the end that each Borrower hereunder ultimately bears the burden of payment of its respective share of indebtedness incurred under and pursuant to the Loan.

		
	(c)    
	In connection with its joint and several obligations under the Loan Documents, each Borrower waives:  (i) any defense based upon any legal disability or other defense of any other Borrower, or by reason of the cessation or limitation of the liability of any other Borrower from any cause other than full payment of all sums payable under the Note or any of the other Loan Documents; (ii) any defense based upon any lack of authority of the officers, directors, partners or agents acting or purporting to act on behalf of any Borrower or any principal thereof or any defect in the formation of any Borrower or any such principal; (iii) any defense based upon the application by any Borrower of the proceeds of the Loan for purposes other than the purposes permitted under this Agreement or any other Loan Document; (iv) any and all rights and defenses arising out of an election of remedies by the Lenders, even though that election of remedies, such as nonjudicial foreclosure with respect to security for any Property, has destroyed all rights of any party to a deficiency judgment against the owner of such Property of subrogation and reimbursement against the principal by the operation of Section 580d of the California Code of Civil Procedure or otherwise, and, as a consequence, will destroy all rights which any Borrower would otherwise have (including, without limitation, the right of subrogation, the right of reimbursement, and the right of contribution) to proceed against such other Borrower; (v) any defense based upon Lender's failure to disclose any information concerning any other Borrower's financial condition or any other circumstances bearing on any other Borrower's ability to pay all sums payable under the Note or any of the other Loan Documents; (vi) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in any other respects ore burdensome than that of a principal; (vii) any defense based upon the Lender's election, in any proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy Code or any successor statute; (viii) any defense based upon, any borrowing or any grant of a security interest under Section 364 of the Bankruptcy Code; (ix) any right of subrogation, any right 

23

Loan 1003622

to enforce any remedy which the Lenders may have against any other Borrower and any right to participate in, or benefit from, any security for the Note or the other Loan Documents now or hereafter held by Lender; and (x) the benefit of any statute of limitations affecting the liability of each Borrower or the enforcement hereof.  Each Borrower agrees that the payment of all sums payable under the Note or any of the other Loan Documents or any part thereof or other act which tolls any statute of limitations applicable to the Note or other Loan Documents shall similarly operate to toll the statute of limitations applicable to each Borrower's liability hereunder.  Without limiting the generality, of the foregoing or any other provision hereof, each Borrower expressly waives to the extent permitted by law any and all rights and defenses which might otherwise be available to it under California Civil Code Sections 2787 to 2855, inclusive, 2899 and 3433 and under California Code of Civil Procedure Sections 580a, 580b, 580d and 726, or any of such sections.  Lender may (A) apply security and direct the order or manner of sale thereof as the Lender in its sole discretion may determine; (B) release, substitute or add any one or more endorsers of the Note or guarantors of Borrowers' obligations under the Note or the other Loan Documents; and (C) apply payments received by Lender from Borrowers to any obligations of Borrowers to the Lender, in such order as the Lender shall determine in its sole discretion.  If all or any portion of the obligations of any Borrower are paid or performed, the obligations of each other Borrower hereunder shall continue and shall remain in full force and effect in the event that all or any part of such payment or performance is avoided or recovered directly or indirectly from the Lender as a preference, fraudulent transfer or otherwise under the Bankruptcy Code or other similar laws, irrespective of full payment and performance of all of the indebtedness and obligations evidenced and secured by the Loan Documents.  
		
	(d)    
	Each Borrower acknowledges that:  (a) the obligations under the Loan Documents are complex in nature, (b) numerous possible defenses to the enforceability of these obligations may presently exist and/or may arise hereafter, and (c) as part of the Lender's consideration for entering into these transactions, Lender has specifically bargained for the waiver and relinquishment by each Borrower of all such defenses, and each Borrower has had the opportunity to seek and receive legal advice from skilled legal counsel in the area of financial transactions of the type contemplated herein.  Given all of the above, each Borrower does hereby represent and confirm to Lender that each Borrower is fully informed regarding, and thoroughly understands:  (i) the nature of all such possible defenses, (ii) the circumstances under which such defenses may arise, (iii) the benefits which such defenses might confer upon Borrower, and (iv) the legal consequences to Borrower of waiving such defenses.  Each Borrower acknowledges that all of the informed waivers herein shall be fully enforceable by Lender, and that Lender is induced to enter into this transaction in material reliance upon the presumed full enforceability thereof.

		
	(e)    
	Without limiting subsection (c) or (d) above, each Borrower hereby specifically waives presentment, demand, protest and notice of any kind and without limiting the generality of the foregoing or any provision of subsection (c) above, each Borrower further expressly waives to the extent permitted by law any and all rights and defenses, including, without limitation, any rights of subrogation, reimbursement, indemnification and contribution, which might otherwise be available to such Borrower under California Civil Code Sections 2787 to 2855, inclusive, 2899 and 3433, or under California Code of Civil Procedure Sections 580a, 580b, 580d and 726, or any such sections.

		
	(f)    
	Without limiting the joint and several liability of the Guarantor to the Lender under the Guaranty, Guarantor, by execution of the Guaranty, jointly and severally agrees to indemnify and hold each Borrower harmless from and against any liability (in the form of indebtedness repaid to Lender under the Loan, including foreclosure under any Deed of Trust) incurred by such Borrower to the Lenders under or pursuant to the Loan in respect of indebtedness incurred by other Borrowers.

 
		
	1.    
	COUNTERPARTS.  To facilitate execution, this document may be executed in as many counterparts as may be convenient or required. It shall not be necessary that the signature of, or on behalf of, each party, or that the signature of all persons required to bind any party, appear on each counterpart.  All counterparts shall collectively constitute a single document.  It shall not be necessary in making proof of this document to produce or account for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto. Any signature page to any counterpart may be detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it additional signature pages.

[The remainder of this page has been intentionally left blank.]
IN WITNESS WHEREOF, Borrowers and Lender have executed this Agreement as of the date appearing on the first page of this Agreement.

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Loan 1003622

		
	 
	“LENDER”
 
WELLS FARGO BANK,
NATIONAL ASSOCIATION
 
 
 
By:____/s/ Kevin Stacker______________________
Name:  Kevin A. Stacker
Title:     Vice President

 
		
	 
	Lender's Address:
WELLS FARGO BANK, NATIONAL ASSOCIATION
Real Estate Portfolio Services 
11601 Wilshire Boulevard, 17th Floor
Los Angeles, California 90025
 
Attn: Kevin A. Stacker
Loan No.:1003622

 
 
 
 
 
[Signatures continue on the following page.]
 
Borrowers' Signature Page to Loan Agreement
 
		
	 
	“BORROWERS”
 
SUNSET BRONSON ENTERTAINMENT PROPERTIES, LLC, a Delaware limited liability company
 
By:   Sunset Studios Holdings, LLC,
a Delaware limited liability company,
its sole member
 
By:  Hudson Sunset Bronson, LLC,
a Delaware limited liability company,
its sole member
 
By:   Hudson Pacific Properties, L.P.,
a Maryland limited partnership,
its sole member
 
By:   Hudson Pacific Properties, Inc.,
a Maryland corporation,
its general partner
 
By:_____/s/ Mark Lammas______
Name:  Mark T. Lammas
Its:     Chief Financial Officer

 

25

Loan 1003622

		
	 
	 
SUNSET GOWER ENTERTAINMENT PROPERTIES, LLC, a Delaware limited liability company
 
 
By:_____/s/ Mark Lammas___________________
Name:  Mark T. Lammas
Its:Treasurer
 

 
		
	 
	Borrowers' Address:
 
SUNSET GOWER ENTERTAINMENT PROPERTIES, LLC and SUNSET BRONSON ENTERTAINMENT PROPERTIES, LLC
c/o Hudson Pacific Properties, Inc.
11601 Wilshire Blvd., Ste 1600
Los Angeles, California 90025-0317 
 
Attn: Mark T. Lammas

 
 
 
 
 
[Signatures continue on the following page.]
 
 
TRS Entities' Signature Page to Loan Agreement
ACKNOWLEDGED AND AGREED by TRS Entities as of the date appearing on the first page of this Agreement.
 
		
	 
	“TRS ENTITIES”
 
SUNSET BRONSON SERVICES, LLC, 
a Delaware limited liability company
 
By:    Hudson Pacific Properties, Inc.,
a Maryland corporation,
its sole member
 
By:_____/s/ Mark Lammas___________________
Name: Mark T. Lammas
Its:Chief Financial Officer

	 
	SUNSET GOWER SERVICES, LLC, 
a Delaware limited liability company
 
By:    Hudson Pacific Properties, Inc.,
a Maryland corporation,
its sole member
 
By:_____/s/ Mark Lammas___________________
Name:  Mark T. Lammas
Its:Chief Financial Officer

 
 
 
 
 
[Signatures continue on the following page.]
 
 
Guarantor's Signature Page to Loan Agreement

26

Loan 1003622

ACKNOWLEDGED AND AGREED by Guarantor, for the purposes of Section 11.27 above, as of the date appearing on the first page of this Agreement.
 
		
	 
	“GUARANTOR”
 
HUDSON PACIFIC PROPERTIES, L.P.,
a Maryland limited partnership
 
By:Hudson Pacific Properties, Inc.
a Maryland corporation,
its general partner
 
By: _____/s/ Mark Lammas___________________
Name:Mark T. Lammas
Title:Chief Financial Officer

 
 
 
 
 
 
[End signatures.]

27

Loan 1003622

 
 
 
SCHEDULE 5.1
Loan No. 1003622
Schedule 5.1
SCHEDULE 5.1
 
BORROWERS' ORGANIZATIONAL CHART
 
SUNSET GOWER ENTERTAINMENT PROPERTIES, LLC

 

28

Loan 1003622

 
 
SCHEDULE 5.1
Loan No. 1003622
Schedule 5.1
 
 
 
SUNSET BRONSON ENTERTAINMENT PROPERTIES, LLC

 

29

Loan 1003622

 
 
 
 
SCHEDULE 5.6
Loan No. 1003622
Schedule 5.6
SCHEDULE 5.6
 
LITIGATION
 

30

Loan 1003622

 
NONESCHEDULE 6.1
Loan No. 1003622
Schedule 6.1
SCHEDULE 6.1
 
REPORTS OF HAZARDOUS MATERIALS
 
1.    Phase I Environmental Site Assessment of Sunset Gower Studios, dated April 26, 2010, prepared by EMG Corp.
2.    Phase I Environmental Site Assessment, dated February 3, 2011, prepared by EMG Corp (Bronson).

31

Loan 1003622

 
EXHIBIT A
Loan No. 1003622
Exhibit A
EXHIBIT A 
DESCRIPTION OF PROPERTY
Exhibit A to LOAN AGREEMENT by and among SUNSET BRONSON ENTERTAINMENT PROPERTIES, LLC, a Delaware limited liability company, and SUNSET GOWER ENTERTAINMENT PROPERTIES, LLC, a Delaware limited liability company, collectively, jointly and severally, as “Borrowers”, and Wells Fargo Bank, National Association, as “Lender”, dated as of February 11, 2011.
 
BRONSON
All that certain real property located in the County of Los Angeles, State of California, described as follows:
PARCEL 1: (Sunset Bronson)
 
LOT 1 AND A PORTION OF LOT 2 OF TRACT NO. 1619, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 20 PAGE 48 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND LOTS 1 TO 12 INCLUSIVE OF TRACT NO. 4468, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 48 PAGE 67  OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS A WHOLE AS FOLLOWS:
 
BEGINNING AT THE NORTHWEST CORNER OF LOT 1 OF TRACT NO. 1619, AT THE SOUTHEAST CORNER OF SUNSET BOULEVARD AND BRONSON AVENUE; THENCE ALONG BRONSON AVENUE, SOUTH 00 DEGREES 08 MINUTES EAST 735.61 FEET TO THE SOUTHWEST CORNER OF LOT 1 OF TRACT NO. 4468, IN THE NORTH LINE OF FERNWOOD AVENUE; THENCE ALONG FERNWOOD AVENUE, NORTH 89 DEGREES 41 MINUTES EAST 601.42 FEET TO THE SOUTHEAST CORNER OF LOT 12 OF TRACT NO. 4468, IN THE WEST LINE OF VAN NESS AVENUE; THENCE ALONG VAN NESS AVENUE, NORTH 00 DEGREES 13 MINUTES WEST 735.56 FEET TO THE SOUTHWEST CORNER OF VAN NESS AVENUE AND SUNSET BOULEVARD; THENCE ALONG SUNSET BOULEVARD, SOUTH 89 DEGREES 41 MINUTES WEST 600.30 FEET TO THE POINT OF BEGINNING.
 
 
PARCEL 2: (Sunset Bronson)
 
THAT PORTION OF FERNWOOD AVENUE VACATED BY RESOLUTION TO VACATE NO. 05-1400270 RECORDED FEBRUARY 2, 2006 AS INSTRUMENT NO. 06-0257516, OFFICIAL RECORDS, BOUNDED AS FOLLOWS:
 
ON THE SOUTH BY THE CENTERLINE OF FERNWOOD AVENUE, 60 FEET WIDE, AS SHOWN ON THE MAP OF SAID TRACT NO. 1619;
 
ON THE WEST BY A LINE PARALLEL WITH AND 15 FEET EASTERLY OF THE SOUTHERLY PROLONGATION OF THE WESTERLY LINE OF LOT 1 OF SAID TRACT NO. 1619.
 
ON THE EAST BY A LINE PARALLEL WITH AND 2 FEET WESTERLY OF THE SOUTHERLY PROLONGATION OF THE EASTERLY LINE OF LOT 12 OF SAID TRACT NO. 1619.
 
 
 
 

32

Loan 1003622

Assessor's Parcel Number: 5545-016-007
 
 
 
PARCEL 2: (Lot D)
 
LOTS 3 AND 4 OF GRIDER AND HAMILTON'S HOLLYWOOD TRACT, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 9 PAGE 12 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
 
 
 
 
Assessor's Parcel Number: 5545-015-003, 004
 
 
 
 
GOWER
 
All that certain real property located in the County of Los Angeles, State of California, described as follows:
 
 
PARCEL 1:
 
PARCELS B AND C OF PARCEL MAP L.A. NO. 2008-2946, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 365 PAGES 7 THROUGH 10 INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
 
ALSO EXCEPT THEREFROM ALL OIL, PETROLEUM, GAS, BREA, ASPHALTUM AND ALL KINDRED SUBSTANCES AND OTHER MINERALS IN, UNDER AND/OR THAT MAY BE PRODUCED FROM A DEPTH BELOW 500 FEET FROM THE SURFACE OF THE SOUTH 50 FEET OF THE EAST 135 FEET OF LOT "B" OF GRIDER AND HAMILTON'S HOLLYWOOD TRACT, WITHOUT THE RIGHT OF SURFACE ENTRY AND WITHOUT THE RIGHT OF INGRESS AND EGRESS TO SAID LAND, AS GRANTED TO ESTELLE MACK, A SINGLE WOMAN, BY DEED RECORDED JUNE 30, 1953, AS INSTRUMENT NO. 3727, OFFICIAL RECORDS. 
 
 
Assessor's Parcel Number: 5545-013-57, 58, 59, 404
 
 
PARCEL 1A:
 
A NONEXCLUSIVE EASEMENT FOR PEDESTRIAN AND VEHICULAR INGRESS AND EGRESS, AND THE PARKING OF PASSENGER VEHICLES, AS CREATED BY A DOCUMENT ENTITLED “RECIPROCAL EASEMENT AGREEMENT” DATED AS OF OCTOBER 3, 2007, AND RECORDED OCTOBER 9, 2007 AS INSTRUMENT NO. 2007-2298259, OF OFFICIAL RECORDS, SUBJECT TO ALL OF THE TERMS, COVENANTS AND CONDITIONS CONTAINED THEREIN.
 
PARCEL 2:
 
A LEASEHOLD, AS CREATED BY:
 
1)    THAT CERTAIN LEASE DATED AUGUST 26, 1949, EXECUTED BY ISAAC E. CHADWICK AND ELIZABETH K. CHADWICK, AS LESSOR, AND COLUMBIA PICTURES CORPORATION, A CORPORATION, AS LESSEE, AS REFERENCED IN THE DOCUMENT ENTITLED “MEMORANDUM OF LEASE”, WHICH WAS RECORDED SEPTEMBER 15, 1949, AS INSTRUMENT NO. 1175, OFFICIAL RECORDS, FOR THE TERM AND UPON AND SUBJECT TO ALL THE PROVISIONS CONTAINED IN SAID DOCUMENT, AND IN SAID 

33

Loan 1003622

LEASE; AND 
 
2)    AS AMENDED BY INSTRUMENT RECORDED DECEMBER 28, 1950, AS INSTRUMENT NO. 1831, OFFICIAL RECORDS; AND 
 
3)    AS MODIFIED BY INSTRUMENT ENTITLED “EXTENSION OF LEASE”, RECORDED APRIL 24, 1961, AS INSTRUMENT NO. 1959, OFFICIAL RECORDS; AND 
 
4)    BY MEMORANDUM OF ASSIGNMENT AND ASSUMPTION OF GROUND LEASE DATED NOVEMBER 23, 2004, RECORDED AS INSTRUMENT NO. 04-3071554, BY AND BETWEEN THE PICK-VANOFF COMPANY, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AS ASSIGNOR AND GI PARTNERS STUDIOS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AS ASIGNEE; AND
 
5)    AS AMENDED BY THAT CERTAIN UNRECORDED GROUND LESSOR CERTIFICATE AND AMENDMENT FROM DONALD T. CHADWICK AND BRITT-MARIE CHADWICK, TRUSTEES UNDER THAT CERTAIN TRUST INSTRUMENT KNOWN AS THE CHADWICK 1994 FAMILY TRUST DATED DECEMBER 14 1994, AS TO AN UNDIVIDED ONE-HALF INTEREST AND RICHARD T. CHADWICK, A MARRIED MAN, AS HIS SOLE AND SEPARATE PROPERTY, AS TO AN UNDIVIDED ONE-HALF INTEREST (COLLECTIVELY “LANDLORD”) TO SGS HOLDINGS, LLC, A DELAWARE LIMITED LIABILITY COMPANY DATED AS OF AUGUST 14, 2007; AND
 
6)    AS ASSIGNED PURSUANT TO THAT CERTAIN ASSIGNMENT AND ASSUMPTION OF GROUND LEASES, DATED FEBRUARY 11, 2011, EXECUTED BY SGS HOLDINGS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AND SUNSET GOWER ENTERTAINMENT PROPERTIES, LLC, A DELAWARE LIMITED LIABILITY COMPANY, RECORDED CONCURRENTLY HEREWITH, IN THE OFFICIAL RECORDS OF LOS ANGELES COUNTY, CALIFORNIA; AND
 
A LEASEHOLD, AS CREATED BY:
 
1)     THAT CERTAIN LEASE DATED APRIL 6, 1961, EXECUTED BY ELIZABETH K. CHADWICK, AS LESSOR, AND COLUMBIA PICTURES CORPORATION, A CORPORATION, AS LESSEE AND RECORDED APRIL 24, 1961, AS INSTRUMENT NO. 1958, OFFICIAL RECORDS, FOR THE TERM AND UPON AND SUBJECT TO ALL THE PROVISIONS CONTAINED IN SAID LEASE; AND 
 
2)     BY A MEMORANDUM OF ASSIGNMENT AND ASSUMPTION OF GROUND LEASE, DATED NOVEMBER 23, 2004, RECORDED AS INSTRUMENT NO. 04-3071554, BY AND BETWEEN THE PICK-VANOFF COMPANY, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AS ASSIGNOR, AND GI PARTNERS STUDIOS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AS ASSIGNEE; AND
 
3)    AS AMENDED BY THAT CERTAIN UNRECORDED GROUND LESSOR CERTIFICATE AND AMENDMENT FROM DONALD T. CHADWICK AND BRITT-MARIE CHADWICK TRUSTEES UNDER THAT CERTAIN TRUST INSTRUMENT KNOWN AS THE CHADWICK 1994 FAMILY TRUST DATED DECEMBER 14 1994, AS TO AN UNDIVIDED ONE-HALF INTEREST AND RICHARD T. CHADWICK, A MARRIED MAN AS HIS SOLE AND SEPARATE PROPERTY AS TO AN UNDIVIDED ONE-HALF INTEREST (COLLECTIVELY “LANDLORD”), WHICH BY ITS TERMS ASSIGNED THE INTEREST IF LESSEE FROM GI PARTNERS STUDIOS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, TO SGS HOLDINGS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, DATED AS OF AUGUST 14, 2007, AND THAT CERTAIN ASSIGNMENT OF GROUND LEASES, DATED AUGUST 9, 2007, EXECUTED BY GI PARTNERS STUDIOS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AND SGS HOLDINGS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, WHICH DOCUMENT WAS RECORDED AUGUST 15, 2007 AS INSTRUMENT NO. 07-1910835, IN THE OFFICIAL RECORDS OF LOS ANGELES COUNTY, CALIFORNIA; AND
 
4)    AS ASSIGNED PURSUANT TO THAT CERTAIN ASSIGNMENT AND ASSUMPTION OF GROUND LEASES, DATED FEBRUARY 11, 2011, EXECUTED BY SGS HOLDINGS, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AND SUNSET GOWER ENTERTAINMENT PROPERTIES, LLC, A DELAWARE LIMITED LIABILITY COMPANY, RECORDED CONCURRENTLY HEREWITH, IN THE OFFICIAL RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, 

34

Loan 1003622

 
ALL AS TO A PORTION OF THE FOLLOWING REFERENCED REAL PROPERTY:
 
ALL THAT PORTION OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 11, TOWNSHIP 1 SOUTH, RANGE 14 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF LOS ANGELES, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF THE SURVEY OF SAID LAND ON FILE IN THE BUREAU OF LAND MANAGEMENT, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT OF INTERSECTION OF THE SOUTH LINE OF SUNSET BOULEVARD, 100 FEET WIDE, WITH THE EAST LINE OF GOWER STREET, 60 FEET WIDE; THENCE NORTH 89 DEGREE 40 MINUTES 08 SECONDS EAST, 125.05 FEET ALONG THE SOUTH LINE OF SAID SUNSET BOULEVARD TO A LINE PARALLEL WITH AND 5.00 FEET WEST FROM THE WEST LINE OF THE LAND CONVEYED TO WILLIAM HORSLEY, ET UX., BY DEED RECORDED IN BOOK 6457, PAGE 210 OF DEEDS; THENCE SOUTH 00 DEGREES 04 MINUTES 36 SECONDS EAST, 150.00 FEET ALONG A LINE WEST 5.00 FEET FROM THE WEST LINE OF SAID HORSLEY PROPERTY; THENCE NORTH 89 DEGREES 40 MINUTES 08 SECONDS EAST, 5.00 FEET, PARALLEL WITH THE CENTERLINE OF SAID SUNSET BOULEVARD TO THE WEST LINE OF SAID HORSLEY PROPERTY; THENCE SOUTH 00 DEGREES 04 MINUTES 36 SECONDS EAST, 62.00 FEET ALONG THE WEST LINE OF SAID HORSLEY PROPERTY TO THE SOUTHWEST CORNER OF SAID HORSLEY PROPERTY; THENCE SOUTH 89 DEGREES 40 MINUTES 08 SECONDS WEST, 130.06 FEET, PARALLEL WITH THE CENTERLINE OF SAID SUNSET BOULEVARD TO THE EAST LINE OF SAID GOWER STREET; THENCE NORTH 00 DEGREES 40 MINUTES 30 SECONDS WEST, 212.02 FEET ALONG THE EAST LINE OF SAID GOWER STREET TO THE POINT OF BEGINNING. 
 
EXCEPT THEREFROM THE WEST 5.00 FEET THEREOF. 
 
SAID LAND IS ALSO SHOWN ON THAT CERTAIN CERTIFICATE OF COMPLIANCE NO. AA-2004-5776-COC RECORDED SEPTEMBER 22, 2004 AS INSTRUMENT NO. 04-2433264. 
 
 
Assessor's Parcel Number: 2289-001-401
 
 
PARCEL 3:
 
that portion of the northeast quarter of the southwest quarter of section 11, township 1 south, range 14 west, San Bernardino meridian, in the City of Los Angeles, County of Los Angeles, State of California, described as follows: 
 
beginning at a point in the south line of sunset Boulevard, 100 feet wide, 125 feet east from its intersection with the east line of gower street, 60 feet wide, said point being the northwest corner of the land described in deed to william horsley, recorded in Book 7191 page 53 of deeds; thence easterly along from said south line 58 feet, more or less, to the westerly line of the land described in deed to jerry fairbanks and wife, recorded on January 5, 1948 in Book 26378 page 495 of Official Records; thence southerly along said westerly line 67 feet to an angle point therein; thence easterly continuing along the line of said land 12 feet to an angle point in said line; thence southerly along the westerly line of said land and along the prolongation thereof 113 feet; thence westerly parallel with said south line of sunset Boulevard 25 feet; thence northerly parallel with the westerly line of beachwood drive, 25 feet; thence westerly parallel with said south line of sunset Boulevard 40 feet; thence northerly parallel with said westerly line of beachwood drive, 5 feet; thence westerly parallel with said south line of sunset Boulevard 5 feet, more or less, to the southwest corner of said land described in deed to william horsley; thence northerly along the west line of said land 150 feet to the point of beginning. 
 
Assessor's Parcel Number: 5545-013-043

35

Loan 1003622

 
 
EXHIBIT B
Loan No. 1003622
Exhibit B
EXHIBIT B 
DOCUMENTS
Exhibit B to LOAN AGREEMENT by and among SUNSET BRONSON ENTERTAINMENT PROPERTIES, LLC, a Delaware limited liability company, and SUNSET GOWER ENTERTAINMENT PROPERTIES, LLC, a Delaware limited liability company, collectively, jointly and severally, as “Borrowers”, and Wells Fargo Bank, National Association, as “Lender”, dated as of February 11, 2011.
		
	1    
	Loan Documents.  The documents listed below, numbered 1.1 through 1.15, inclusive, and amendments, modifications and supplements thereto which have received the prior written consent of Lender, together with any documents executed in the future that are approved by Lender and that recite that they are “Loan Documents” for purposes of this Agreement are collectively referred to herein as the Loan Documents.

		
	1.    
	This Agreement.

		
	2.    
	The Promissory Note Secured by Deeds of Trust of even date herewith in the original principal amount of the Loan made by Borrower payable to the order of Lender.

		
	3.    
	Those Deeds of Trust with Absolute Assignment of Leases and Rents, Security Agreement and Fixture Filing of even date herewith executed, as applicable, by Borrowers, and TRS Entities, as Trustors, to American Securities Company, a California corporation, as Trustee, for the benefit of Lender, as Beneficiary.

		
	4.    
	Uniform Commercial Code National UCC Financing Statements (Form UCC1) of even date herewith naming each Borrower as Debtor and Lender as Secured Party.

		
	5.    
	Action by Written Consent of the Sole Member of Sunset Gower Entertainment Properties, LLC, dated February 11, 2011.

		
	6.    
	Action by Written Consent of the Sole Member of Sunset Bronson Entertainment Properties, LLC, dated February 11, 2011.

		
	7.    
	Action by Written Consent of the Sole Member of Sunset Studios Holdings, LLC, dated February 11, 2011.

		
	8.    
	Action by Written Consent of the Sole Member of Hudson Sunset Bronson, LLC, dated February 11, 2011.

		
	9.    
	Certified Copy of Board of Directors Resolutions of Hudson Pacific Services, Inc., executed by Howard Stern, as Secretary, dated February 11, 2011.

		
	10.    
	Action by Written Consent of the Sole Member of Sunset Bronson Services, LLC, dated February 11, 2011.

		
	11.    
	Action by Written Consent of the Sole Member of Sunset Gower Services, LLC, dated February 11, 2011.

		
	12.    
	Certified Copy of Board of Directors Resolutions of Hudson Pacific Properties, Inc., executed by Howard Stern, as Secretary, dated February 11, 2011.

		
	13.    
	Action by Written Consent of the General Partner of Hudson Pacific Properties, L.P., dated February 11, 2011.

		
	14.    
	Transfer Authorizer Designation, executed by Borrowers, dated February 11, 2011.

		
	15.    
	Agreement for Disbursement Prior to Recording and Amendment to Note, executed by Borrowers and Lender, dated February 11, 2011.

		
	2    
	Other Related Documents (Which Are Not Loan Documents):

		
	1.    
	Partial Payment and Carve-Out Guaranty of even date herewith executed by Hudson Pacific Properties, L.P., a Maryland limited partnership, as Guarantor, in favor of Lender.

		
	2.    
	Hazardous Materials Indemnity Agreement (Unsecured) or even date herewith executed by and between Hudson Pacific Properties, L.P., a Maryland limited partnership, as Indemintor, and Lender.

		
	3.    
	Funds Transfer Agreement for Disbursement of Loan Proceeds of even date herewith executed by and between Borrowers and Lender.

		
	4.    
	Opinion of Elkins Kalt Weintraub Reuben Gartside LLP, dated February 11, 2011.

EXHIBIT C

36

Loan 1003622

Loan No. 1003622
Exhibit C
TRANSFER AUTHORIZER DESIGNATION
(For Disbursement of Loan Proceeds by Funds Transfer)
 
o NEW  o REPLACE PREVIOUS DESIGNATION   o  ADD   o   CHANGE    o  DELETE LINE NUMBER    _____ 
o INITIAL LOAN DISBURSEMENT
 
The following representatives of SUNSET BRONSON ENTERTAINMENT PROPERTIES, LLC, a Delaware limited liability company (“Bronson”), and SUNSET GOWER ENTERTAINMENT PROPERTIES, LLC, a Delaware limited liability company (“Gower”), (Bronson and Gower each a “Borrower” and collectively, jointly and severally, “Borrowers”) are authorized to request the disbursement of Loan Proceeds and initiate funds transfers for Loan 1003622 dated February 11, 2011 between Wells Fargo Bank, National Association ("Lender") and Borrowers.  Lender is authorized to rely on this Transfer Authorizer Designation until it has received a new Transfer Authorizer Designation signed by Borrowers, even in the event that any or all of the foregoing information may have changed.
 
					
	 
	Name
	Title
	Maximum Wire 
Amount

	1
	 
	 
	 
	 

	2
	 
	 
	 
	 

	3
	 
	 
	 
	 

	4
	 
	 
	 
	 

	5
	 
	 
	 
	 

Initial Loan Disbursement Authorization o  Not Applicable    o   Applicable
Lender is hereby authorized to accept wire transfer instructions from ____________________(ie. specify title company escrow) to be delivered, via fax, email, letter or other method, to Lender for title/escrow #________ and/or loan #___________.  Said instructions shall include the title/escrow company's Receiving Party Account Name, city and state, Receiving Party Account Number, Receiving Lender's (ABA) Routing Number, Maximum Transfer Amount required, Borrower's name, title order/escrow number to which Lender shall fund the Initial Loan Disbursement under the loan number referenced above.  The amount of said transfer shall not exceed $_________________.  Borrower acknowledges and agrees that the acceptance of and wire transfer of funds by Lender in accordance with the title/escrow company instructions shall be governed by this Transfer Authorizer Designation form and any other Loan Documents dated ___________________ by and between Lender and Borrower.  Lender shall not be further required to confirm said wiring instructions received from title/escrow company with Borrower.  This Initial Loan Disbursement Authorization is in effect until ____DATE___________ after which time a new authorization request shall be required.  Borrower shall instruct title/escrow company via a separate letter, to deliver said wiring instructions in writing, directly to Lender at its address.  Borrower also hereby authorizes Lender to attach a copy of the title/escrow company's written wire instructions to this Transfer Authorizer Designation form upon receipt of said instructions.  
 
 
1. 
			
	Transfer Funds to (Receiving Party Account Name):

	Receiving Party Account Number:

	Receiving Bank Name, City and State:
	Receiving Bank Routing (ABA) Number

	Maximum Transfer Amount:
	 

	Further Credit Information/Instructions:

 
2.

37

Loan 1003622

			
	Transfer Funds to (Receiving Party Account Name):

	Receiving Party Account Number:

	Receiving Bank Name, City and State:
	Receiving Bank Routing (ABA) Number

	Maximum Transfer Amount:
	 

	Further Credit Information/Instructions:

3.
			
	Transfer Funds to (Receiving Party Account Name):

	Receiving Party Account Number:

	Receiving Bank Name, City and State:
	Receiving Bank Routing (ABA) Number

	Maximum Transfer Amount:
	 

	Further Credit Information/Instructions:

 
     Maximum Wire Amount may not exceed the Loan Amount.
 
		
	Date: February __, 2011
	“BORROWERS”
 
SUNSET BRONSON ENTERTAINMENT PROPERTIES, LLC, a Delaware limited liability company
 
By:   Sunset Studios Holdings, LLC,
a Delaware limited liability company,
its sole member
 
By:  Hudson Sunset Bronson, LLC,
a Delaware limited liability company,
its sole member
 
By:   Hudson Pacific Properties, L.P.,
a Maryland limited partnership,
its sole member
 
By:    Hudson Pacific Properties, Inc.,
a Maryland corporation,
its general partner
 
By:_____________________
Name:Mark T. Lammas
Its:Chief Financial Officer

 
		
	 
	SUNSET GOWER ENTERTAINMENT PROPERTIES, LLC, a Delaware limited liability company
 
By:___________________
Name:  Mark T. Lammas
Its:Treasurer
 

 
SFI-656494v10 
 
 

38

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