Document:

Exhibit
10.02

 

AMENDED AND RESTATED

 

IGN ENTERTAINMENT, INC.

 

2003
Stock Option and Grant Plan

 

SECTION 1. 
GENERAL PURPOSE OF THE PLAN; DEFINITIONS

 

The name of the plan is
the IGN Entertainment, Inc. 2003 Stock Option and Grant Plan (the
“Plan”).  The purpose of the Plan is to encourage and enable the officers,
employees, directors, consultants and other key persons of IGN Entertainment
Inc., a Delaware corporation (the “Company”) and its Subsidiaries, upon whose
judgment, initiative and efforts the Company largely depends for the successful
conduct of its business to acquire a proprietary interest in the Company. 
It is anticipated that providing such persons with a direct stake in the
Company’s welfare will assure a closer identification of their interests with
those of the Company, thereby stimulating their efforts on the Company’s behalf
and strengthening their desire to remain with the Company.

 

The following terms shall
be defined as set forth below:

 

“Act” means the Securities Act of 1933, as amended,
and the rules and regulations thereunder.

 

“Award” or “Awards,” except where referring to a particular category of
grant under the Plan, shall include Incentive Stock Options, Non-Qualified
Stock Options, Restricted Stock Awards, Unrestricted Stock Awards, or any
combination of the foregoing.

 

“Board” means the Board of Directors of the
Company or its successor entity.

 

“Cause” means a vote of the Board resolving
that the grantee should be dismissed as a result of (i) the commission of any
act by a grantee constituting financial dishonesty against the Company (which
act would be chargeable as a crime under applicable law); (ii) a grantee’s
engaging in any other act of dishonesty, fraud, intentional misrepresentation,
moral turpitude, illegality or harassment which, as determined in good faith by
the Board, would:  (A) materially adversely affect the business or the
reputation of the Company with its current or prospective customers, suppliers,
lenders and/or other third parties with whom it does or might do business; or
(B) expose the Company to a risk of civil or criminal legal damages,
liabilities or penalties; (iii) the repeated failure by a grantee to follow the
directives of the Company’s chief executive officer or Board or (iv) any
material misconduct, violation of the Company’s policies, or willful and
deliberate non-performance of duty by the grantee in connection with the
business affairs of the Company.

 

 

“Code” means the Internal Revenue Code of
1986, as amended, and any successor Code, and related rules, regulations and
interpretations.

 

“Committee” has the meaning specified in
Section 2.

 

“Effective Date” means the date on which the Plan is approved by
stockholders as set forth at the end of this Plan.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

“Fair Market Value” of the Stock on any
given date means the fair market value of the Stock determined in good faith by
the Committee; provided, however, that (i) if the Stock trades on
a national securities exchange, the Fair Market Value on any given date is the
closing sale price on such date; (ii) if the Stock does not trade on any
national securities exchange but is admitted to trading on the National
Association of Securities Dealers, Inc. Automated Quotation System (“NASDAQ”),
the Fair Market Value on any given date is the closing sale price as reported
by NASDAQ on such date; or if no such closing sale price information is
available, the average of the highest bid and lowest asked prices for the Stock
reported on such date.  For any date that is not a trading day, the Fair
Market Value of the Stock for such date will be determined by using the closing
sale price or the average of the highest bid and lowest asked prices, as
appropriate, for the immediately preceding trading day.  The Committee can
substitute a particular time of day or other measure of closing sale price if
appropriate because of changes in exchange or market procedures.
Notwithstanding the foregoing, if the date for which Fair Market Value is
determined is the first day when trading prices for the Stock are reported on
NASDAQ or trading on a national securities exchange, the Fair Market Value
shall be the “Price to the Public” (or equivalent) set forth on the cover page
for the final prospectus relating to the Company’s Initial Public Offering.

 

“Good Reason” means the occurrence of any
of the following events:  (i) a substantial adverse change in the nature
or scope of the grantee’s responsibilities, authorities, powers, functions or
duties; (ii) a reduction in the grantee’s annual base salary except for
across-the-board salary reductions similarly affecting all or substantially all
management employees; or (iii) the relocation of the offices at which the
grantee is principally employed to a location more than 50 miles from such
offices.

 

“Incentive Stock Option” means any Stock
Option designated and qualified as an “incentive stock option” as defined in
Section 422 of the Code.

 

“Initial Public Offering” means the
consummation of the first fully underwritten, firm commitment public offering
pursuant to an effective registration statement under the Act covering the
offer and sale by the Company of its equity securities, as a result of or
following which the Stock shall be publicly held.

 

“Non-Qualified Stock Option” means any
Stock Option that is not an Incentive Stock Option.

 

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“Option” or “Stock Option” means any option to purchase shares of Stock
granted pursuant to Section 5.

 

“Restricted Stock Award” means Awards
granted pursuant to Section 6.

 

“Stock” means the Common Stock, par value
$0.01 per share, of the Company, subject to adjustments pursuant to
Section 3.

 

“Subsidiary” means any corporation or other
entity (other than the Company) in any unbroken chain of corporations or other
entities beginning with the Company if each of the corporations or entities
(other than the last corporation or entity in the unbroken chain) owns stock or
other interests possessing 50 percent or more of the economic interest or 50
percent or more of the total combined voting power of all classes of stock or
other interests in one of the other corporations or entities in the chain.

 

“Unrestricted Stock Award” means any Award
granted pursuant to Section 7.

 

SECTION 2. 
ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT GRANTEES AND DETERMINE
AWARDS

 

(a)                                 
Administration
of Plan.  The Plan shall be administered by the Board, or at the
discretion of the Board, by a committee of the Board, comprised, except as
contemplated by Section 2(c), of not less than two Directors.  All
references herein to the Committee shall be deemed to refer to the group then
responsible for administration of the Plan at the relevant time (i.e., either
the Board of Directors or a committee or committees of the Board, as
applicable).

 

(b)                                
Powers
of Committee.  The Committee shall have the power and authority to
grant Awards consistent with the terms of the Plan, including the power and
authority:

 

(i)                                    
to
select the individuals to whom Awards may from time to time be granted;

 

(ii)                                 
to
determine the time or times of grant, and the extent, if any, of Incentive
Stock Options, Non-Qualified Stock Options, Restricted Stock Awards,
Unrestricted Stock Awards, or any combination of the foregoing, granted to any
one or more grantees;

 

(iii)                              
to
determine the number of shares of Stock to be covered by any Award;

 

(iv)                             
to
determine and modify from time to time the terms and conditions, including
restrictions, not inconsistent with the terms of the Plan, of any Award, which
terms and conditions may differ among individual Awards and grantees, and to
approve the form of written instruments evidencing the Awards;

 

(v)                                
to
accelerate at any time the exercisability or vesting of all or any portion of
any Award;

 

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(vi)                             
to
impose any limitations on Awards granted under the Plan, including limitations
on transfers, repurchase provisions and the like and to exercise repurchase
rights or obligations;

 

(vii)                          
subject
to the provisions of Section 5(a)(ii), to extend at any time the period in
which Stock Options may be exercised;

 

(viii)                       
to
determine at any time whether, to what extent, and under what circumstances
distribution or the receipt of Stock and other amounts payable with respect to
an Award shall be deferred either automatically or at the election of the
grantee and whether and to what extent the Company shall pay or credit amounts
constituting interest (at rates determined by the Committee) or dividends or
deemed dividends on such deferrals; and

 

(ix)                               
at
any time to adopt, alter and repeal such rules, guidelines and practices for
administration of the Plan and for its own acts and proceedings as it shall
deem advisable; to interpret the terms and provisions of the Plan and any Award
(including related written instruments); to make all determinations it deems
advisable for the administration of the Plan; to decide all disputes arising in
connection with the Plan; and to otherwise supervise the administration of the
Plan.

 

All decisions and
interpretations of the Committee shall be binding on all persons, including the
Company and Plan grantees.

 

(c)                                 
Delegation
of Authority to Grant Awards.  The Committee, in its
discretion, may delegate to the Chief Executive Officer of the Company all or
part of the Committee’s authority and duties with respect to the granting of
Awards at Fair Market Value, and in the event of such delegation, such Chief
Executive Officer shall be deemed a one-person Committee of the Board. 
Any such delegation by the Committee shall include a limitation as to the amount
of Awards that may be granted during the period of the delegation and shall
contain guidelines as to the determination of the exercise price of any Option,
the conversion ratio or price of other Awards and the vesting criteria. 
The Committee may revoke or amend the terms of a delegation at any time but
such action shall not invalidate any prior actions of the Committee’s delegate
or delegates that were consistent with the terms of the Plan.

 

(d)                                
Indemnification.  Neither the Board
nor the Committee, nor any member of either or any delegatee thereof, shall be
liable for any act, omission, interpretation, construction or determination
made in good faith in connection with the Plan, and the members of the Board
and the Committee (and any delegatee thereof) shall be entitled in all cases to
indemnification and reimbursement by the Company in respect of any claim, loss,
damage or expense (including, without limitation, reasonable attorneys’ fees)
arising or resulting therefrom to the fullest extent permitted by law and/or
under any directors’ and officers’ liability insurance coverage which may be in
effect from time to time.

 

SECTION 3. 
STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

 

(a)                                 
Stock
Issuable.  The maximum number of shares of Stock reserved and
available for issuance under the Plan shall be 161,800 shares of Common Stock,
subject to adjustment as provided in Section 3(b).  For purposes of
this limitation, the shares of Stock underlying any

 

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Awards which are forfeited,
canceled, reacquired by the Company, satisfied without the issuance of Stock or
otherwise terminated (other than by exercise) shall be added back to the shares
of Stock available for issuance under the Plan.  Subject to such overall
limitation, shares of Stock may be issued up to such maximum number pursuant to
any type or types of Award; provided, however, that from and after the date the
Company becomes subject to the deduction limit imposed by Section 162(m)
of the Code, Stock Options with respect to no more than 101,000 shares of Stock
may be granted to any one individual grantee during any one calendar year
period.  The shares available for issuance under the Plan may be
authorized but unissued shares of Stock or shares of Stock reacquired by the
Company and held in its treasury.

 

(b)                                
Changes
in Stock.  Subject to Section 3(c) hereof, if, as a
result of any reorganization, recapitalization, reclassification, stock
dividend, stock split, reverse stock split or other similar change in the
Company’s capital stock, the outstanding shares of Stock are increased or
decreased or are exchanged for a different number or kind of shares or other securities
of the Company, or additional shares or new or different shares or other
securities of the Company or other non-cash assets are distributed with respect
to such shares of Stock or other securities, or, if, as a result of any merger,
consolidation or sale of all or substantially all of the assets of the Company,
the outstanding shares of Stock are converted into or exchanged for a different
number or kind of securities of the Company or any successor entity (or a
parent or subsidiary thereof), the Committee shall make an appropriate or
proportionate adjustment in (i) the maximum number of shares reserved for
issuance under the Plan, (ii) the number of Stock Options that can be granted
to any one individual grantee, (iii) the number and kind of shares or other
securities subject to any then outstanding Awards under the Plan, (iv) the
repurchase price per share subject to each outstanding Restricted Stock Award,
and (v) the exercise price and/or exchange price for each share subject to any
then outstanding Stock Options under the Plan, without changing the aggregate
exercise price (i.e., the exercise price multiplied by the number of Stock
Options ) as to which such Stock Options remain exercisable.  The
adjustment by the Committee shall be final, binding and conclusive.  No
fractional shares of Stock shall be issued under the Plan resulting from any
such adjustment, but the Committee in its discretion may make a cash payment in
lieu of fractional shares.

 

The Committee may also
adjust the number of shares subject to outstanding Awards and the exercise
price and the terms of outstanding Awards to take into consideration material
changes in accounting practices or principles, extraordinary dividends,
acquisitions or dispositions of stock or property or any other event if it is
determined by the Committee that such adjustment is appropriate to avoid
distortion in the operation of the Plan, provided  that no such
adjustment shall be made in the case of an Incentive Stock Option, without the
consent of the grantee, if it would constitute a modification, extension or
renewal of the Option within the meaning of Section 424(h) of the Code.

 

(c)                                 
Mergers
and Other Sale Events.  In the case of and subject to the
consummation of (i) the dissolution or liquidation of the Company, (ii) the
sale of all or substantially all of the assets of the Company on a consolidated
basis to an unrelated person or entity, (iii) a merger, reorganization or
consolidation in which the outstanding shares of Stock are converted into or
exchanged for securities of the successor entity and the holders of the
Company’s outstanding voting power immediately prior to such transaction do not
own a majority of the outstanding voting power of the successor entity immediately
upon completion of such transaction, (iv) the 

 

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sale of all or a majority of the
outstanding capital stock of the Company to an unrelated person or entity or
(v) any other transaction in which, the owners of the Company’s outstanding
voting power prior to such transaction do not own at least a majority of the
outstanding voting power of the successor entity immediately upon completion of
the transaction (in each case, regardless of the form thereof, a “Sale Event”),
unless otherwise provided in the Award agreement, the Plan and all outstanding
Options issued hereunder shall terminate upon the effective time of any such
Sale Event, unless provision is made in connection with such transaction in the
sole discretion of the parties thereto for the assumption or continuation of
Options theretofore granted (after taking into account any acceleration
hereunder) by the successor entity, or the substitution of such Options with
new Options of the successor entity or a parent or subsidiary thereof, with
such adjustment as to the number and kind of shares and the per share exercise
prices as such parties shall agree (after taking into account any acceleration
if any, hereunder).  In the event of such termination, each grantee shall
be permitted, within a specified period of time prior to the consummation of
the Sale Event as determined by the Committee, to exercise all outstanding
Options held by such grantee which are then exercisable or will become exercisable
as of the effective time of the Sale Event; provided, however, that the
exercise of Options not exercisable prior to the Sale Event shall be subject to
the consummation of the Sale Event.  (The treatment of Restricted Stock
Award in connection with any such transaction shall be as specified in the
relevant Award agreement.)

 

(d)                                
Substitute
Awards.  The Committee may grant Awards under the Plan in substitution
for stock and stock based awards held by employees, directors or other key
persons of another corporation in connection with a merger or consolidation of
the employing corporation with the Company or a Subsidiary or the acquisition
by the Company or a Subsidiary of property or stock of the employing
corporation.  The Committee may direct that the substitute awards be
granted on such terms and conditions as the Committee considers appropriate in
the circumstances.  Any substitute Awards granted under the Plan shall not
count against the share limitation set forth in Section 3(a).

 

SECTION 4. 
ELIGIBILITY

 

Grantees in the Plan will
be such full or part-time officers, employees, directors, consultants and other
key persons (including prospective employees) of the Company and its
Subsidiaries who are responsible for, or contribute to, the management, growth
or profitability of the Company and its Subsidiaries as are selected from time
to time by the Committee in its sole discretion.

 

SECTION 5. 
STOCK OPTIONS

 

Any Stock Option granted
under the Plan shall be pursuant to a Stock Option Agreement which shall be in
such form as the Committee may from time to time approve.  Option
agreements need not be identical.

 

Stock Options granted
under the Plan may be either Incentive Stock Options or Non-Qualified Stock
Options.  Incentive Stock Options may be granted only to employees of the
Company or any Subsidiary that is a “subsidiary corporation” within the meaning
of

 

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Section 424(f) of the Code.  To the extent
that any Option does not qualify as an Incentive Stock Option, it shall be
deemed a Non-Qualified Stock Option.

 

No Incentive Stock Option
shall be granted under the Plan after the date which is ten years from the date
the Plan is approved by the Board.

 

(a)                                 
Terms
of Stock Options.  Stock Options granted under the Plan shall be
subject to the following terms and conditions and shall contain such additional
terms and conditions, not inconsistent with the terms of the Plan, as the
Committee shall deem desirable.  If the Committee so determines, Stock
Options may be granted in lieu of cash compensation at the grantee’s election,
subject to such terms and conditions as the Committee may establish, as well as
in addition to other compensation.

 

(i)                                    
Exercise
Price.  The exercise price per share for the Stock covered by a Stock
Option shall be determined by the Committee at the time of grant but shall not
be less than 100 percent of the Fair Market Value on the date of grant in the
case of Incentive Stock Options.  If an employee owns or is deemed to own
(by reason of the attribution rules of Section 424(d) of the Code) more
than 10 percent of the combined voting power of all classes of stock of the
Company or any parent or subsidiary corporation and an Incentive Stock Option
is granted to such employee, the option price of such Incentive Stock Option
shall be not less than 110 percent of the Fair Market Value on the grant date.

 

(ii)                                 
Option
Term.  The term of each Stock Option shall be fixed by the Committee,
but no Stock Option shall be exercisable more than ten years after the date the
Stock Option is granted.  If an employee owns or is deemed to own (by
reason of the attribution rules of Section 424(d) of the Code) more than
10 percent of the combined voting power of all classes of stock of the Company
or any parent or subsidiary corporation and an Incentive Stock Option is
granted to such employee, the term of such Stock Option shall be no more than
five years from the date of grant.

 

(iii)                              
Exercisability;
Rights of a Stockholder.  Stock Options shall become exercisable at
such time or times, whether or not in installments, as shall be determined by
the Committee at or after the grant date.  The Committee may at any time
accelerate the exercisability of all or any portion of any Stock Option. 
An optionee shall have the rights of a stockholder only as to shares acquired
upon the exercise of a Stock Option and not as to unexercised Stock Options.

 

(iv)                             
Method
of Exercise.  Stock Options may be exercised in whole or in part,
by giving written notice of exercise to the Company, specifying the number of
shares to be purchased.  Payment of the purchase price may be made by one
or more of the following methods to the extent provided in the Award agreement
or as otherwise provided by the Committee:

 

(A)                             
In
cash, by certified or bank check, or other instrument acceptable to the
Committee in U.S. funds payable to the order of the Company in an amount equal
to the purchase price of such Option Shares;

 

7

 

(B)                               
By
the optionee delivering to the Company a promissory note if the Board has
expressly authorized the loan of funds to the optionee for the purpose of
enabling or assisting the optionee to effect the exercise of his or her Stock
Option; provided that at least so much of the exercise price as represents the
par value of the Stock shall be paid other than with a promissory note if
otherwise required by state law;

 

(C)                               
If
permitted by the Committee, through the delivery (or attestation to the
ownership) of shares of Stock that have been purchased by the optionee on the
open market or have been beneficially owned by the optionee for at least six
months and are not then subject to restrictions under any Company plan. 
Such surrendered shares shall be valued at Fair Market Value on the exercise
date;

 

(D)                              
If
permitted by the Committee, by the optionee delivering to the Company a
properly executed exercise notice together with irrevocable instructions to a
broker to promptly deliver to the Company cash or a check payable and
acceptable to the Company to pay the purchase price; provided that in
the event the optionee chooses to pay the purchase price as so provided, the
optionee and the broker shall comply with such procedures and enter into such
agreements of indemnity and other agreements as the Committee shall prescribe
as a condition of such payment procedure.

 

Payment instruments will
be received subject to collection.  No certificates for shares of Stock so
purchased will be issued to optionee until the Company has completed all steps
required by law to be taken in connection with the issuance and sale of the
shares, including without limitation (i) receipt of a representation from the
optionee at the time of exercise of the Option that the optionee is purchasing
the shares for the optionee’s own account and not with a view to any sale or
distribution thereof, (ii) the legending of any certificate representing the
shares to evidence the foregoing representations and restrictions, and (iii)
obtaining from optionee payment or provision for all withholding taxes due as a
result of the exercise of the Option.  The delivery of certificates
representing the shares of Stock to be purchased pursuant to the exercise of a
Stock Option will be contingent upon receipt from the optionee (or a purchaser
acting in his or her stead in accordance with the provisions of the Stock
Option) by the Company of the full purchase price for such shares and the
fulfillment of any other requirements contained in the Option Award agreement
or applicable provisions of laws.  In the event an optionee chooses to pay
the purchase price by previously-owned shares of Stock through the attestation
method, the shares of Stock transferred to the optionee upon the exercise of
the Stock Option shall be net of the number of shares attested to.

 

(b)                                
Annual
Limit on Incentive Stock Options.  To the extent required for
“incentive stock option” treatment under Section 422 of the Code, the
aggregate Fair Market Value (determined as of the time of grant) of the shares
of Stock with respect to which Incentive Stock Options granted under this Plan
and any other plan of the Company or its parent and subsidiary corporations
become exercisable for the first time by an optionee during any calendar year
shall not exceed $100,000.  To the extent that any Stock Option exceeds
this limit, it shall constitute a Non-Qualified Stock Option.

 

(c)                                 
Non-transferability
of Options.  No Stock Option shall be transferable by the
optionee otherwise than by will or by the laws of descent and distribution and
all Stock Options

 

8

 

shall be exercisable, during the
optionee’s lifetime, only by the optionee, or by the optionee’s legal
representative or guardian in the event of the optionee’s incapacity. 
Notwithstanding the foregoing, the Committee, in its sole discretion, may
provide in the Award agreement regarding a given Option that the optionee may
transfer, without consideration for the transfer, his or her Non-Qualified
Stock Options to members of his or her immediate family, to trusts for the
benefit of such family members, or to partnerships in which such family members
are the only partners, provided that the transferee agrees in writing with the
Company to be bound by all of the terms and conditions of this Plan and the
applicable Option.

 

SECTION 6. 
RESTRICTED STOCK AWARDS

 

(a)                                 
Nature
of Restricted Stock Awards.  A Restricted Stock Award is
an Award pursuant to which the Company may, in its sole discretion, grant or
sell, at such purchase price as determined by the Committee, in its sole
discretion, shares of Stock subject to such restrictions and conditions as the
Committee may determine at the time of grant (“Restricted Stock”), which
purchase price shall be payable in cash or other form of consideration
acceptable to the Committee.  Conditions may be based on continuing employment
(or other service relationship) and/or achievement of pre-established
performance goals and objectives.  The terms and conditions of each such
agreement shall be determined by the Committee, and such terms and conditions
may differ among individual Awards and grantees.

 

(b)                                
Rights
as a Stockholder.  Upon execution of a written instrument setting
forth the Restricted Stock Award and payment of any applicable purchase price,
a grantee shall have the rights of a stockholder with respect to the voting of
the Restricted Stock, subject to such conditions contained in the written
instrument evidencing the Restricted Stock Award.  Unless the Committee
shall otherwise determine, certificates evidencing the Restricted Stock shall
remain in the possession of the Company until such Restricted Stock is vested
as provided in subsection (d) below of this Section, and the grantee shall
be required, as a condition of the grant, to deliver to the Company a stock
power endorsed in blank.

 

(c)                                 
Restrictions.  Restricted
Stock may not be sold, assigned, transferred, pledged or otherwise encumbered
or disposed of except as specifically provided herein or in the Restricted
Stock Award agreement.  If a grantee’s employment (or other service
relationship) with the Company and its Subsidiaries terminates under the
conditions specified in the relevant instrument relating to the Award, or upon
such other event or events as may be stated in the instrument evidencing the
Award, the Company or its assigns shall have the right or shall agree, as may
be specified in the relevant instrument, to repurchase some or all of the
shares of Stock subject to the Award at such purchase price as is set forth in
such instrument.

 

(d)                                
Vesting
of Restricted Stock. The Committee at the time of grant shall specify the date
or dates and/or the attainment of pre-established performance goals, objectives
and other conditions on which Restricted Stock shall become vested, subject to
such further rights of the Company or its assigns as may be specified in the
instrument evidencing the Restricted Stock Award.

 

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(e)                                 
Waiver,
Deferral and Reinvestment of Dividends.  The Restricted Stock Award
agreement may require or permit the immediate payment, waiver, deferral or
investment of dividends paid on the Restricted Stock.

 

SECTION 7. 
UNRESTRICTED STOCK AWARDS

 

(a)                                 
Grant
or Sale of Unrestricted Stock.  The Committee may, in its
sole discretion, grant (or sell at par value or such higher purchase price
determined by the Committee) an Unrestricted Stock Award to any grantee,
pursuant to which such grantee may receive shares of Stock free of any vesting
restrictions (“Unrestricted Stock”) under the Plan.  Unrestricted Stock
Awards may be granted or sold as described in the preceding sentence in respect
of past services or other valid consideration, or in lieu of any cash
compensation due to such individual.

 

(b)                                
Elections
to Receive Unrestricted Stock In Lieu of Compensation.  Upon the
request of a grantee and with the consent of the Committee, each such grantee
may, pursuant to an advance written election delivered to the Company no later
than the date specified by the Committee, receive a portion of the cash
compensation otherwise due to such grantee in the form of shares of
Unrestricted Stock either currently or on a deferred basis.

 

(c)                                 
Restrictions
on Transfers.  The right to receive shares of Unrestricted Stock
on a deferred basis may not be sold, assigned, transferred, pledged or
otherwise encumbered, other than by will or the laws of descent and
distribution.

 

SECTION 8. 
TAX WITHHOLDING

 

(a)                                 
Payment
by Grantee.  Each grantee shall, no later than the date as of
which the value of an Award or of any Stock or other amounts received
thereunder first becomes includable in the gross income of the grantee for
Federal income tax purposes, pay to the Company, or make arrangements
satisfactory to the Committee regarding payment of, any federal, state, or
local taxes of any kind required by law to be withheld with respect to such
income.  The Company and its Subsidiaries shall, to the extent permitted
by law, have the right to deduct any such taxes from any payment of any kind
otherwise due to the grantee.  The Company’s obligation to deliver stock
certificates to any grantee is subject to and conditioned on tax obligations
being satisfied by the grantee.

 

(b)                                
Payment
in Stock.  Subject to approval by the Committee, a grantee may
elect to have the minimum required tax withholding obligation satisfied, in
whole or in part, by (i) authorizing the Company to withhold from shares of
Stock to be issued pursuant to any Award a number of shares with an aggregate
Fair Market Value (as of the date the withholding is effected) that would
satisfy the withholding amount due, or (ii) transferring to the Company shares
of Stock owned by the grantee with an aggregate Fair Market Value (as of the
date the withholding is effected) that would satisfy the minimum withholding
amount due.

 

SECTION 9. 
TRANSFER, LEAVE OF ABSENCE, ETC.

 

For purposes of the Plan,
the following events shall not be deemed a termination of employment:

 

10

 

(a)                                 
a
transfer to the employment of the Company from a Subsidiary or from the Company
to a Subsidiary, or from one Subsidiary to another; or

 

(b)                                
an
approved leave of absence for military service or sickness, or for any other
purpose approved by the Company, if the employee’s right to re-employment is
guaranteed either by a statute or by contract or under the policy pursuant to
which the leave of absence was granted or if the Committee otherwise so
provides in writing.

 

SECTION 10. 
AMENDMENTS AND TERMINATION

 

The Board may, at any
time, amend or discontinue the Plan and the Committee may, at any time, amend
or cancel any outstanding Award (or provide substitute Awards at the same or
reduced exercise or purchase price or with no exercise or purchase price in a
manner not inconsistent with the terms of the Plan), but such price, if any,
must satisfy the requirements which would apply to the substitute or amended
Award if it were then initially granted under this Plan for the purpose of
satisfying changes in law or for any other lawful purpose, but no such action
shall adversely affect rights under any outstanding Award without the holder’s
consent.  If and to the extent determined by the Committee to be required
by the Code to ensure that Incentive Stock Options granted under the Plan are
qualified under Section 422 of the Code, Plan amendments shall be subject
to approval by the Company’s stockholders who are eligible to vote at a meeting
of stockholders.  Nothing in this Section 10 shall limit the Board’s
or Committee’s authority to take any action permitted pursuant to
Section 3(c).

 

SECTION 11.
 STATUS OF PLAN

 

With respect to the
portion of any Award that has not been exercised and any payments in cash,
Stock or other consideration not received by a grantee, a grantee shall have no
rights greater than those of a general creditor of the Company unless the
Committee shall otherwise expressly determine in connection with any Award or
Awards.  In its sole discretion, the Committee may authorize the creation
of trusts or other arrangements to meet the Company’s obligations to deliver
Stock or make payments with respect to Awards hereunder, provided that
the existence of such trusts or other arrangements is consistent with the
foregoing sentence.

 

SECTION 12. 
GENERAL PROVISIONS

 

(a)                                 
No
Distribution; Compliance with Legal Requirements. The Committee may require each
person acquiring Stock pursuant to an Award to represent to and agree with the
Company in writing that such person is acquiring the shares without a view to
distribution thereof.  No shares of Stock shall be issued pursuant to an
Award until all applicable securities law and other legal and stock exchange or
similar requirements have been satisfied.  The Committee may require the
placing of such stop-orders and restrictive legends on certificates for Stock
and Awards as it deems appropriate.

 

(b)                                
Delivery
of Stock Certificates.  Stock certificates to grantees under this
Plan shall be deemed delivered for all purposes when the Company or a stock
transfer agent of the Company shall have mailed such certificates in the United
States mail, addressed to the grantee, at the grantee’s last known address on
file with the Company.

 

11

 

(c)                                 
Other
Compensation Arrangements; No Employment Rights.  Nothing contained in this Plan
shall prevent the Board from adopting other or additional compensation
arrangements, including trusts, and such arrangements may be either generally
applicable or applicable only in specific cases.  The adoption of this
Plan and the grant of Awards do not confer upon any employee any right to
continued employment with the Company or any Subsidiary.

 

(d)                                
Trading
Policy Restrictions.  Option exercises and other Awards under the Plan
shall be subject to such Company’s insider-trading-policy-related restrictions,
terms and conditions as may be established by the Committee, or in accordance
with policies set by the Committee, from time to time.

 

(e)                                 
Designation
of Beneficiary.  Each grantee to whom an Award has been made under
the Plan may designate a beneficiary or beneficiaries to exercise any Award or
receive any payment under any Award payable on or after the grantee’s
death.  Any such designation shall be on a form provided for that purpose
by the Administrator and shall not be effective until received by the
Administrator.  If no beneficiary has been designated by a deceased
grantee, or if the designated beneficiaries have predeceased the grantee, the
beneficiary shall be the grantee’s estate.

 

SECTION 13. 
EFFECTIVE DATE OF PLAN

 

This Plan shall become
effective upon approval by the stockholders in accordance with applicable
law.  Subject to such approval by the stockholders and to the requirement
that no Stock may be issued hereunder prior to such approval, Stock Options and
other Awards may be granted hereunder on and after adoption of this Plan by the
Board.

 

SECTION 14. 
GOVERNING LAW

 

This Plan and all Awards
and actions taken thereunder shall be governed by Massachusetts law, applied
without regard to conflict of law principles.

 

	
  ADOPTED BY BOARD OF
  DIRECTORS:

  	
   

  	
  ,

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  APPROVED BY STOCKHOLDERS:

  	
   

  	
  ,

  	
   

  	
   

  

 

12

 

Notice of Grant of
Stock Option

 

 

IGN
ENTERTAINMENT, INC.

(the “Company”)

 

NOTICE
OF GRANT OF STOCK OPTION

 

	
  ý

  	
  Executive Grant

  	
   

  	
  Company EIN: 943316902

  Address:  8000 Marina Boulevard, Second Floor

  Brisbane, California 94005

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (the “Participant”)

  	
   

  	
  Option
  Number:
                             

  
	
  Address:

  	
   

  	
  Plan: 2003 Stock Option and Grant Plan (the
  “Plan”)

  
	
   

  	
   

  	
   

  
	
  SSN:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

Effective
                     
(the “Date of Grant”),
you have been granted an Incentive Stock Option to
buy                     
shares of Company Common Stock
(the “Shares”)
at
$                     
per share (the “Option”). 
This Option expires on
                
(the “Expiration Date”),
or earlier as specified in the Stock Option Agreement attached hereto as Exhibit
A (the “Stock Option
Agreement”).  The aggregate purchase price payable upon
exercise in full of this Option is
$                . 
All capitalized terms not defined herein have the meanings ascribed to them in
the Stock Option Agreement.

 

So long as you continue to provide services to the
Company or to any Parent or Subsidiary thereof, subject to the terms of the
Stock Option Agreement, this Option will become exercisable with respect to
portions of the Shares (but unvested shares can only be exercised in full), and
portions of the Shares will become vested, according to the schedule shown
below:

 

	
  Shares

  	
   

  	
  Date
  Option

  is Exercisable

  	
   

  	
  Vesting
  Schedule for Shares

  	
   

  	
  Full
  Vest

  
	
  25%

  	
   

  	
  Immediately

  	
   

  	
  In one installment
  effective on
                 
  (the “First Vesting
  Date”)

  	
   

  	
   

  
	
  75%

  	
   

  	
  Immediately

  	
   

  	
  In 36 equal  monthly installments at the end of
  each succeeding month after the First Vesting Date

  	
   

  	
   

  

 

Acceleration of Vesting: Upon the closing (“Closing”) of (i) a
merger, reorganization, consolidation or other transaction in which the
stockholders of the Company before such merger, reorganization, consolidation
or other transaction own less than fifty percent (50%) of the outstanding
voting equity securities of the surviving corporation, (ii) a sale or other
transfer of all or substantially all of the assets of the Company, or (iii) a
transfer of more than fifty percent (50%) of the outstanding voting equity
securities of the Company in one transaction or a series of related
transactions (each of (i), (ii), and (iii), a “Change in Control”), the vesting
schedule accelerates as follows:

 

(1) if the Change in Control occurs before the First
Vesting Date: (a) if you continuously provide services to the remaining entity
following the Change in Control or any Parent or Subsidiary thereof (the “Acquiring Entity”) up
to and through the First Vesting Date, then on the First Vesting Date: (i)
2.083% of the Shares will become Vested Shares for each month elapsed from the
Date of Grant to the date of the Closing

 

 

(prorated for a partial month), and (ii) 1.042% of the
Shares will become Vested Shares for each month elapsed from the date of the
Closing to the First Vesting Date (prorated for a partial month); (b) for so
long as you continuously provide services to the Acquiring Entity following the
First Vesting Date, 1.042% of the Shares will become Vested Shares for each
month following the First Vesting Date; and (c) if you continue to provide
services to the Acquiring Entity up to and through the first anniversary of the
Closing (the “First
Anniversary”) or you are Terminated by the Acquiring Entity for
any reason other than Cause (as defined in the Plan) or the Acquiring Entity
reduces your responsibilities or compensation to a level less than the your
responsibilities or compensation at the Company immediately prior to the
Closing (each, a “Triggering
Termination”), then on the First Anniversary or the date of
Triggering Termination, an additional fifty percent (50%) of the Shares will
become Vested Shares;

 

(2) if the Change in Control occurs on or after the
First Vesting Date, following the Closing, the Shares will cease to vest in
monthly installments, and if you continue to provide services to the Acquiring
Entity up to and through the First Anniversary or a Triggering Termination
occurs, then on the First Anniversary or the date of the Triggering
Termination, one hundred percent (100%) of the Unvested Shares will become
Vested Shares.

 

By your signature and the Company’s signature below,
you and the Company hereby agree that this Option is granted under and governed
by the terms and conditions of the Plan as amended and the Stock Option
Agreement, all of which are attached and made a part of this document.

 

	
  IGN
  Entertainment, Inc.

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
  Typed Name:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT
A

TO NOTICE OF GRANT OF STOCK OPTION

 

OPTION
AGREEMENT

 

 

Exhibit A to
Notice of Grant of Stock Options

 

NO.    

 

IGN
ENTERTAINMENT, INC.

 

2003
STOCK OPTION AND GRANT PLAN

 

STOCK
OPTION AGREEMENT

 

The Company hereby grants
to the Participant an option under the 2003 Stock Option and Grant Plan (the “Plan”) to purchase the number of shares of the
Company’s Common Stock indicated in the notice of grant of stock options
attached as the facing page hereto (the “Notice of Grant”) by and between the Company and the Participant.  The
terms “Company,”
“Participant”
and “Shares”
shall have the meanings ascribed to such terms in the Notice of Grant; all
other capitalized terms not defined herein shall have the meaning ascribed to
them in the Plan.

 

1.            
GRANT OF OPTION.  The Company hereby grants to Participant an option (this “Option”) to purchase
the Shares at the exercise price per share set forth on the Notice of Grant
(the “Exercise Price”),
subject to all of the terms and conditions of this Agreement and the
Plan.  If designated as an “Incentive” Option on the Notice of Grant, the
Option is intended to qualify as an “incentive stock option” (the “ISO”) within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended
(the “Code”).

 

2.            
EXERCISE PERIOD.

 

2.1         
Exercise Period of Option.  This Option will become vested and exercisable
during its term as to portions of the Shares in accordance with the terms set
forth in the Notice of Grant.  The Shares issued upon exercise of this
Option will be subject to the restrictions on transfer and Repurchase Options
set forth in Sections 7, 8 and 9 below.  If application of the vesting
percentage causes a fractional share, such share shall be rounded down to the
nearest whole share for each month except for the last month in such vesting period,
at the end of which last month this Option shall become exercisable for the
full remainder of the Shares.  Unvested Shares (as defined in
Section 2.2 of this Agreement) may not be sold or otherwise transferred by
the Participant without the Company’s prior written consent. 
Notwithstanding any provision in the Plan or this Agreement to the contrary,
Options for Unvested Shares will not be exercisable on or after Participant’s
Termination Date.

 

2.2         
Vesting of Options.  Shares that are vested pursuant to the
schedule set forth in Section 2.1 are “Vested Shares.”  Shares that are
not vested pursuant to the schedule set forth in Section 2.1 are “Unvested Shares.”

 

2.3         
Expiration. 
The Option shall expire on the Expiration Date set forth on the Notice of Grant
or earlier as provided in Section 3 below.

 

 

3.            
TERMINATION.

 

3.1         
Termination for Any Reason Except Death, Disability or Cause.  If Participant is Terminated for
any reason, except death, Disability or for Cause, the Option, to the extent
(and only to the extent) that it would have been exercisable by Participant on
the Termination Date, may be exercised by Participant no later than ninety (90)
days after the Termination Date, but in any event no later than the Expiration
Date.

 

3.2         
Termination Because of Death or Disability.  If Participant is Terminated
because of death or Disability of Participant (or Participant dies within
ninety (90) days of Termination when Termination is for any reason other than
Participant’s Disability or for Cause), the Option, to the extent that it is
exercisable by Participant on the Termination Date, may be exercised by
Participant (or Participant’s legal representative) no later than twelve (12)
months after the Termination Date, but in any event no later than the
Expiration Date.  Any exercise beyond (i) ninety (90) days after the
Termination Date when the Termination is for any reason other than the
Participant’s death or Disability, within the meaning of Section 22(e)(3)
of the Code; or (ii) twelve (12) months after the Termination Date when the
termination is for Participant’s disability, within the meaning of
Section 22(e)(3) of the Code, is deemed to be an NQSO.

 

3.3         
Termination for Cause.  If Participant is Terminated for Cause, then
the Option will expire on Participant’s Termination Date, or at such later time
and on such conditions as are determined by the Committee.

 

3.4         
No Obligation to Employ.  Nothing in the Plan or this Agreement shall
confer on Participant any right to continue in the employ of, or other
relationship with, the Company or any Parent or Subsidiary of the Company, or
limit in any way the right of the Company or any Parent or Subsidiary of the
Company to terminate Participant’s employment or other relationship at any
time, with or without Cause.

 

4.            
MANNER OF EXERCISE.

 

4.1         
Stock Option Exercise Agreement.  To exercise this Option, Participant (or in
the case of exercise after Participant’s death or incapacity, Participant’s
executor, administrator, heir or legatee, as the case may be) must deliver to
the Company an executed stock option exercise agreement in the form attached
hereto as Exhibit A, or in such other form as may be approved by
the Committee from time to time (the “Exercise Agreement”), which shall set forth, inter
alia, (i) Participant’s election to exercise the Option,
(ii) the number of Shares being purchased, (iii) any restrictions
imposed on the Shares and (iv) any representations, warranties and
agreements regarding Participant’s investment intent and access to information
as may be required by the Company to comply with applicable securities
laws.  If someone other than Participant exercises the Option, then such
person must submit documentation reasonably acceptable to the Company verifying
that such person has the legal right to exercise the Option.

 

4.2         
Limitations on Exercise.  The Option may not be exercised unless such
exercise is in compliance with all applicable federal and state securities
laws, as they are in effect on the date of exercise.  The Option may not
be exercised as to fewer than one hundred (100) Shares unless it is exercised
as to all Shares as to which the Option is then exercisable.

 

2

 

4.3         
Payment. 
The Exercise Agreement shall be accompanied by full payment of the Exercise
Price for the shares being purchased in cash (by check), or where permitted by
law:

 

(a)          
by cancellation of
indebtedness of the Company to the Participant;

 

(b)          
by surrender of
shares of the Company’s Common Stock that (i) either (A) have been
owned by Participant for more than six (6) months and have been paid for within
the meaning of SEC Rule 144 (and, if such shares were purchased from the
Company by use of a promissory note, such note has been fully paid with respect
to such shares); or (B) were obtained by Participant in the open public
market; and (ii) are clear of all liens, claims, encumbrances or security
interests;

 

(c)          
provided that a
public market for the Company’s stock exists: (i) through a “same day
sale” commitment from Participant and a broker-dealer that is a member of the
National Association of Securities Dealers (an “NASD Dealer”) whereby Participant
irrevocably elects to exercise the Option and to sell a portion of the Shares
so purchased sufficient to pay for the total Exercise Price and whereby the
NASD Dealer irrevocably commits upon receipt of such Shares to forward the
total Exercise Price directly to the Company, or (ii) through a “margin”
commitment from Participant and an NASD Dealer whereby Participant irrevocably
elects to exercise the Option and to pledge the Shares so purchased to the NASD
Dealer in a margin account as security for a loan from the NASD Dealer in the
amount of the total Exercise Price, and whereby the NASD Dealer irrevocably
commits upon receipt of such Shares to forward the total Exercise Price
directly to the Company; or

 

(d)          
any other form of
consideration approved by the Committee; or

 

(e)          
by any combination of
the foregoing.

 

4.4         
Tax Withholding.  Prior to the issuance of the Shares upon exercise of the
Option, Participant must pay or provide for any applicable federal, state and
local withholding obligations of the Company.  If the Committee permits,
Participant may provide for payment of withholding taxes upon exercise of the
Option by requesting that the Company retain the minimum number of Shares with
a Fair Market Value equal to the minimum amount of taxes required to be
withheld; but in no event will the Company withhold Shares if such withholding
would result in adverse accounting consequences to the Company.  In such
case, the Company shall issue the net number of Shares to the Participant by
deducting the Shares retained from the Shares issuable upon exercise.

 

4.5         
Issuance of Shares.  Provided that the Exercise Agreement and
payment are in form and substance satisfactory to counsel for the Company, the
Company shall issue the Shares registered in the name of Participant,
Participant’s authorized assignee, or Participant’s legal representative, and
shall deliver certificates representing the Shares with the appropriate legends
affixed thereto.

 

5.            
NOTICE OF DISQUALIFYING DISPOSITION OF ISO SHARES.  If the Option is an ISO, and if
Participant sells or otherwise disposes of any of the Shares acquired pursuant
to the ISO on or before the later of (i) the date two (2) years after the
Date of Grant, and

 

3

 

(ii) the date one (1) year after transfer of such
Shares to Participant upon exercise of the Option, Participant shall
immediately notify the Company in writing of such disposition.  Participant
agrees that Participant may be subject to income tax withholding by the Company
on the compensation income recognized by Participant from the early disposition
by payment in cash or out of the current wages or other compensation payable to
Participant.

 

6.            
COMPLIANCE WITH LAWS AND REGULATIONS.

 

6.1         
Executive Grants.  Although the Plan is intended to be a written
compensatory benefit plan within the meaning of Rule 701 promulgated under
the Securities Act, grants may be made pursuant to the Plan which do not
qualify for exemption under Rule 701 or Section 25102(o) of the California
Corporations Code.  If the Notice of Grant indicates that this Option is
an “Executive Grant,” any
requirement of the Plan which is required in law only because of
Section 25102(o) need not apply if the Committee so provides.

 

6.2         
Standard Grants.  If the Notice of Grant indicates that this Option is a
“Standard Grant,” (a) the Plan and this Agreement are intended
to comply with Section 25102(o) of the California Corporations Code and
any regulations relating thereto, and (b) any
provision of this Agreement which is inconsistent with Section 25102(o) or
any regulations relating thereto shall, without further act or amendment by the
Company or the Board, be reformed to comply with the requirements of
Section 25102(o) and any regulations relating thereto.

 

6.3         
Restricted Securities.  The exercise of the Option and the issuance
and transfer of Shares shall be subject to compliance by the Company and
Participant with all applicable requirements of federal and state securities
laws and with all applicable requirements of any stock exchange on which the
Company’s Common Stock may be listed at the time of such issuance or
transfer.  Participant understands that the Company is under no obligation
to register or qualify the Shares with the SEC, any state securities commission
or any stock exchange to effect such compliance.

 

7.            
NONTRANSFERABILITY OF OPTION.  The Option may not be transferred in any
manner other than by will or by the laws of descent and distribution and may be
exercised during the lifetime of Participant only by Participant or in the
event of Participant’s incapacity, by Participant’s legal representative. 
The terms of the Option shall be binding upon the executors, administrators,
successors and assigns of Participant.

 

8.            
COMPANY’S REPURCHASE OPTION FOR UNVESTED SHARES.  The Company, or its assignee,
shall have the option to repurchase Participant’s Unvested Shares (as defined
in Section 2.2 of this Agreement) on the terms and conditions set forth in
the Exercise Agreement (the “Repurchase Option”) if Participant is Terminated for any
reason, or no reason, including without limitation Participant’s death,
Disability, voluntary resignation or termination by the Company with or without
Cause.  Notwithstanding the foregoing, the Company shall retain the
Repurchase Option for Unvested Shares only as to that number of Unvested Shares
(whether or not exercised) that exceeds the number of Vested Shares which
remain unexercised.

 

9.            
COMPANY’S RIGHT OF FIRST REFUSAL.  Unvested Shares may not be sold or otherwise
transferred by Participant without the Company’s prior written consent. 
Before any Vested Shares held by Participant or any transferee of such Vested
Shares may be sold or

 

4

 

otherwise transferred (including without limitation a
transfer by gift or operation of law), the Company and/or its assignee(s) shall
have an assignable right of first refusal to purchase the Vested Shares to be
sold or transferred on the terms and conditions set forth in the Exercise
Agreement (the “Right of
First Refusal”).  The Company’s Right of First Refusal will
terminate when the Company’s securities become publicly traded.

 

10.         
TAX CONSEQUENCES.  Set forth below is a brief summary as of the
Effective Date of the Plan of some of the federal and California tax
consequences of exercise of the Option and disposition of the Shares.  THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX
LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  PARTICIPANT SHOULD CONSULT A
TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.

 

10.1       
Exercise of ISO.  If the Option qualifies as an ISO, there will be no regular
federal or California income tax liability upon the exercise of the Option,
although the excess, if any, of the Fair Market Value of the Shares on the date
of exercise over the Exercise Price will be treated as a tax preference item
for federal alternative minimum tax purposes and may subject the Participant to
the alternative minimum tax in the year of exercise.

 

10.2       
Exercise of Nonqualified Stock Option.  If the Option does not qualify as an ISO,
there may be a regular federal and California income tax liability upon the
exercise of the Option.  Participant will be treated as having received
compensation income (taxable at ordinary income tax rates) equal to the excess,
if any, of the Fair Market Value of the Shares on the date of exercise over the
Exercise Price.  If Participant is a current or former employee of the
Company, the Company may be required to withhold from Participant’s
compensation or collect from Participant and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income at the
time of exercise.

 

10.3       
Disposition of Shares.  The following tax consequences may apply upon
disposition of the Shares.

 

(a)          
Incentive Stock Options.  If the Shares are held for more
than twelve (12) months after the date of purchase of the Shares pursuant to
the exercise of an ISO and are disposed of more than two (2) years after the
Date of Grant, any gain realized on disposition of the Shares will be treated
as long term capital gain for federal and California income tax purposes. 
If Shares purchased under an ISO are disposed of within the applicable one (1)
year or two (2) year period, any gain realized on such disposition will be treated
as compensation income (taxable at ordinary income rates) to the extent of the
excess, if any, of the Fair Market Value of the Shares on the date of exercise
over the Exercise Price.  To the extent the Shares were exercised prior to
vesting co-incident with the filing of an 83(b) Election, the amount taxed
because of a disqualifying disposition will be based upon the excess, if any,
of the fair market value on the date of vesting over the exercise price.

 

(b)          
Nonqualified Stock
Options.  If
the Shares are held for more than twelve (12) months after the date of purchase
of the Shares pursuant to the exercise of an NQSO, any gain realized on
disposition of the Shares will be treated as long term capital gain.

 

5

 

(c)          
Withholding.  The Company may be required to
withhold from the Participant’s compensation or collect from the Participant
and pay to the applicable taxing authorities an amount equal to a percentage of
this compensation income.

 

10.4       
Section 83(b) Election for Unvested Shares.  With respect to Unvested Shares,
which are subject to the Repurchase Option, unless an election is filed by the
Participant with the Internal Revenue Service (and, if necessary, the proper
state taxing authorities), within 30 days of the purchase of the Unvested
Shares, electing pursuant to Section 83(b) of the Code (and similar state
tax provisions, if applicable) to be taxed currently on any difference between
the Exercise Price of the Unvested Shares and their Fair Market Value on the
date of purchase, there may be a recognition of taxable income (including,
where applicable, alternative minimum taxable income) to the Participant,
measured by the excess, if any, of the Fair Market Value of the Unvested Shares
at the time they cease to be Unvested Shares, over the Exercise Price of the
Unvested Shares.

 

11.         
PRIVILEGES OF STOCK OWNERSHIP.  Participant shall not have any of the rights
of a shareholder with respect to any Shares until the Shares are issued to
Participant.

 

12.         
INTERPRETATION.  Any dispute regarding the interpretation of this Agreement
shall be submitted by Participant or the Company to the Committee for
review.  The resolution of such a dispute by the Committee shall be final
and binding on the Company and Participant.

 

13.         
ENTIRE AGREEMENT.  The Plan is incorporated herein by
reference.  This Agreement, the Notice of Grant and the Plan constitute
the entire agreement of the parties and supersede all prior undertakings and
agreements with respect to the subject matter hereof.

 

14.         
NOTICES. 
Any notice required to be given or delivered to the Company under the terms of
this Agreement shall be in writing and addressed to the Corporate Secretary of
the Company at its principal corporate offices.  Any notice required to be
given or delivered to Participant shall be in writing and addressed to
Participant at the address indicated above or to such other address as such
party may designate in writing from time to time to the Company.  All
notices shall be deemed to have been given or delivered upon: 
(i) personal delivery; (ii) three (3) days after deposit in the
United States mail by certified or registered mail (return receipt requested);
(iii) one (1) business day after deposit with any return receipt express
courier (prepaid); or (iv) one (1) business day after transmission by
facsimile, rapifax or telecopier.

 

15.         
SUCCESSORS AND ASSIGNS.  The Company may assign any of its rights under
this Agreement, including its rights to purchase Shares under the Repurchase
Option and the Right of First Refusal.  This Agreement shall be binding
upon and inure to the benefit of the successors and assigns of the
Company.  Subject to the restrictions on transfer set forth herein, this
Agreement shall be binding upon Participant and Participant’s heirs, executors,
administrators, legal representatives, successors and assigns.

 

16.         
GOVERNING LAW.  This Agreement shall be governed by and construed in accordance
with the laws of the State of California as such laws are applied to agreements
between California residents entered into and to be performed entirely within
California.  If any provision of this Agreement is determined by a court
of law to be illegal or unenforceable, then

 

6

 

such provision will be enforced to the maximum extent
possible and the other provisions will remain fully effective and enforceable.

 

17.         
FINANCIAL STATEMENTS.  The Company will provide financial statements
to Participant annually during the period such Participant has this Option or
Shares outstanding as required by Section 260.140.46 of the California
Code of Regulations.  Notwithstanding the foregoing, the Company will not
be required to provide such financial statements to the Participant if his or
her services in connection with the Company assure him or her access to
equivalent information.

 

18.         
DEFINITIONS.  As used in this Option, the following terms will
have the following meanings:

 

“Disability” means a
disability, whether temporary or permanent, partial or total, as determined by
the Committee.

 

“Parent” means any
corporation (other than the Company) in an unbroken chain of corporations
ending with the Company if each of such corporations other than the Company
owns stock representing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such
chain.

 

“SEC” means the
Securities and Exchange Commission.

 

“Securities Act” means
the Securities Act of 1933, as amended.

 

“Termination” or “Terminated” means
with respect to Participant, that the Participant has for any reason ceased to
provide services as an employee, officer, director or consultant to the Company
or a Parent or Subsidiary of the Company.  Participant will not be deemed
to have ceased to provide services in the case of (i) sick leave,
(ii) military leave, or (iii) any other leave of absence approved by
the Committee, provided that such leave is for a period of not more than ninety
(90) days (a) unless reinstatement (or, in the case of an employee with an
ISO, reemployment) upon the expiration of such leave is guaranteed by contract
or statute, or (b) unless provided otherwise pursuant to formal policy
adopted from time to time by the Company’s Board and issued and promulgated in
writing.  If the Participant is on (i) sick leave, (ii) military
leave or (iii) an approved leave of absence, the Committee may make such
provisions respecting suspension of vesting of the Option while on leave from
the Company or a Parent or Subsidiary of the Company as it may deem
appropriate, except that in no event may an Option be exercised after the
expiration of the term set forth in this Stock Option Agreement.  The
Committee will have sole discretion to determine whether the Participant has
ceased to provide services and the effective date on which the Participant
ceased to provide services (the “Termination Date”).

 

19.         
ACCEPTANCE. 
Participant hereby acknowledges receipt of a copy of the Plan and this
Agreement.  Participant has read and understands the terms and provisions
thereof, and accepts the Option subject to all the terms and conditions of the
Plan and this Agreement.  Participant acknowledges that there may be
adverse tax consequences upon exercise of the Option or disposition of the
Shares and that Participant should consult a tax adviser prior to such exercise
or disposition.

 

7

 

The Company has agreed to be bound by the terms of
this Agreement pursuant to its execution of the Notice of Grant by its duly
authorized representative, and Participant has similarly agreed to be bound by
the terms of this Agreement, pursuant to the Participant’s execution of the
Notice of Grant, effective as of the Date of Grant.

 

8

 

EXHIBIT A

TO OPTION AGREEMENT

 

FORM
OF STOCK OPTION EXERCISE AGREEMENT

 

 

No.    

 

IGN
ENTERTAINMENT, INC.

 

2003
STOCK OPTION AND GRANT PLAN

 

STOCK
OPTION EXERCISE AGREEMENT

 

This Stock Option
Exercise Agreement (the “Exercise
Agreement”) is made and entered into as of
                   ,
200     (the “Effective Date”) by and between IGN
Entertainment, Inc., a Delaware corporation (the “Company”), and the purchaser (the “Purchaser”) named in
the notice of grant attached hereto (the “Notice of Grant”).  Capitalized terms
not defined herein shall have the meanings ascribed to them in the Company’s
2003 Stock Option and Grant Plan (the “Plan”).

 

	
  Purchaser:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social
  Security Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total
  Number of Shares:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exercise
  Price Per Share:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date
  of Grant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Type
  of Stock Option

  	
   

  	
   

  
	
  (Check
  one):

  	
   

  	
  o Incentive Stock
  Option

  
	
   

  	
   

  	
  o Nonqualified Stock
  Option

  

 

1.            
EXERCISE OF OPTION.

 

1.1         
Exercise. 
Pursuant to exercise of that certain option granted to Purchaser under the Plan
and generally described in the Notice of Grant (the “Option”), and subject
to the terms and conditions of this Exercise Agreement, Purchaser hereby
purchases from the Company, and the Company hereby sells to Purchaser, the
Total Number of Shares set forth above (up to the total number of “Shares” (as
defined in the Notice of Grant) set forth in the Notice of Grant less
the aggregate number of “Shares” (as defined in the Notice of Grant) actually
sold to Purchaser under the Option) (the “Shares”) of the Company’s Common Stock at the
Exercise Price Per Share set forth on the Notice of Grant (the “Exercise Price”). 
As used in this Exercise Agreement, the term “Shares” refers to the Shares purchased
under this Exercise Agreement and includes all securities received (i) in
replacement of the Shares, (ii) as a result of stock dividends or stock
splits with respect to the Shares, and (iii) all securities received in

 

 

replacement of the Shares in a merger,
recapitalization, reorganization or similar corporate transaction.

 

1.2         
Title to Shares.  If the exact spelling of the name(s) under which Purchaser will
take title to the Shares is other than as set forth on the Notice of Grant,
that name is specified below:

 

 

 

If Purchaser desires to
take title to the Shares other than as an individual (as separate property),
that title is as specified below:

 

o    Individual, as separate property

 

o    Husband and wife, as community property

 

o    Joint Tenants

 

o    Other; please
specify:                      

 

To assign the Shares to a
trust, a stock transfer agreement in the form provided by the Company (the “Stock Transfer Agreement”)
must be completed and executed.

 

1.3         
Payment. 
Purchaser hereby delivers payment of the Exercise Price in the manner permitted
in the Stock Option Agreement as follows (please check and complete below as
appropriate):

 

o    in cash (by check) in the amount of
$                 ,
receipt of which is acknowledged by the Company;

 

o    by cancellation of indebtedness of the Company owed to
Purchaser in the amount of
$                 ;
or

 

o    by delivery of
                 
fully-paid, nonassessable and vested shares of the Common Stock of the Company
owned by Purchaser for at least six (6) months prior to the date hereof which
have been paid for within the meaning of SEC Rule 144, (if purchased by
use of a promissory note, such note has been fully paid with respect to such
vested shares), or obtained by Purchaser in the open public market, and owned
free and clear of all liens, claims, encumbrances or security interests, valued
at the current Fair Market Value of $                 
per share.

 

2.            
DELIVERY.

 

2.1         
Deliveries by Purchaser.  Purchaser hereby delivers to the Company
(i) this Exercise Agreement, (ii) two (2) copies of a blank Stock
Power and Assignment Separate from Stock Certificate in the form of Exhibit 1
attached hereto (the “Stock
Powers”), both

 

2

 

executed by Purchaser (and Purchaser’s spouse, if
any), (iii) if Purchaser is married, a Consent of Spouse in the form of Exhibit 2
attached hereto (the “Spouse
Consent”) executed by Purchaser’s spouse, and (iv) the
aggregate Exercise Price and payment or other provision for any applicable tax
obligations, receipt of which may be attached hereto as Exhibit 3.

 

2.2         
Deliveries by the Company.  Upon its receipt of the Exercise Price,
payment or other provision for any applicable tax obligations and all the
documents to be executed and delivered by Purchaser to the Company under
Section 2.1, the Company will issue a duly executed stock certificate
evidencing the Shares in the name of Purchaser to be placed in escrow as
provided in Section 11 until expiration of or termination of the Company’s
Repurchase Option and Right of First Refusal described in Sections 8 and 9.

 

3.            
REPRESENTATIONS AND WARRANTIES OF PURCHASER.  Purchaser represents and warrants
to the Company that:

 

3.1         
Agrees to Terms of the Plan.  Purchaser has received a copy of the Plan, the
Notice of Grant and the Stock Option Agreement, has read and understands the
terms of the Plan, the Stock Option Agreement and this Exercise Agreement, and
agrees to be bound by their terms and conditions.  Purchaser acknowledges
that there may be adverse tax consequences upon exercise of the Option or
disposition of the Shares, and that Purchaser should consult a tax adviser
prior to such exercise or disposition.

 

3.2         
Purchase for Own Account for Investment.  Purchaser is purchasing the
Shares for Purchaser’s own account for investment purposes only and not with a
view to, or for sale in connection with, a distribution of the Shares within
the meaning of the Securities Act.  Purchaser has no present intention of
selling or otherwise disposing of all or any portion of the Shares and no one
other than Purchaser has any beneficial ownership of any of the Shares.

 

3.3         
Access to Information.  Purchaser has had access to all information
regarding the Company and its present and prospective business, assets,
liabilities and financial condition that Purchaser reasonably considers
important in making the decision to purchase the Shares, and Purchaser has had
ample opportunity to ask questions of the Company’s representatives concerning
such matters and this investment.

 

3.4         
Understanding of Risks.  Purchaser is fully aware of: 
(i) the highly speculative nature of the investment in the Shares;
(ii) the financial hazards involved; (iii) the lack of liquidity of
the Shares and the restrictions on transferability of the Shares (e.g.,
that Purchaser may not be able to sell or dispose of the Shares or use them as
collateral for loans); (iv) the qualifications and backgrounds of the
management of the Company; and (v) the tax consequences of investment in
the Shares.  Purchaser is capable of evaluating the merits and risks of
this investment, has the ability to protect Purchaser’s own interests in this
transaction and is financially capable of bearing a total loss of this
investment.

 

3.5         
No General Solicitation.  At no time was Purchaser presented with or
solicited by any publicly issued or circulated newspaper, mail, radio,
television or other form of general advertising or solicitation in connection
with the offer, sale and purchase of the Shares.

 

3

 

4.            
COMPLIANCE WITH SECURITIES LAWS.

 

4.1         
Compliance with U.S. Federal Securities Laws.  Purchaser understands and
acknowledges that the Shares have not been registered with the SEC under the
Securities Act and that, notwithstanding any other provision of the Stock
Option Agreement to the contrary, the exercise of any rights to purchase any
Shares is expressly conditioned upon compliance with the Securities Act and all
applicable state securities laws.  Purchaser agrees to cooperate with the
Company to ensure compliance with such laws.

 

4.2         
Compliance with California Securities Laws.  THE
PLAN, THE STOCK OPTION AGREEMENT, AND THIS EXERCISE AGREEMENT ARE INTENDED TO COMPLY WITH SECTION 25102(o) or
25102(f), AS APPLICABLE, OF THE CALIFORNIA CORPORATIONS CODE AND ANY RULES
(INCLUDING COMMISSIONER RULES, IF APPLICABLE) OR REGULATIONS PROMULGATED
THEREUNDER BY THE CALIFORNIA DEPARTMENT OF CORPORATIONS (THE “REGULATIONS”).  ANY PROVISION OF THIS
EXERCISE AGREEMENT THAT IS INCONSISTENT WITH SECTION 25102(o)/25102(f), AS
APPLICABLE, SHALL, WITHOUT FURTHER ACT OR AMENDMENT BY THE COMPANY OR THE
BOARD, BE REFORMED TO COMPLY WITH THE REQUIREMENTS OF
SECTION 25102(o)/25102(f), AS APPLICABLE.  THE SALE OF THE SECURITIES
THAT ARE THE SUBJECT OF THIS EXERCISE AGREEMENT, IF NOT YET QUALIFIED WITH THE
CALIFORNIA COMMISSIONER OF CORPORATIONS AND NOT EXEMPT FROM SUCH QUALIFICATION,
IS SUBJECT TO SUCH QUALIFICATION, AND THE ISSUANCE OF SUCH SECURITIES, AND THE
RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO SUCH QUALIFICATION
IS UNLAWFUL UNLESS THE SALE IS EXEMPT.  THE RIGHTS OF THE PARTIES TO THIS
EXERCISE AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING
OBTAINED OR AN EXEMPTION BEING AVAILABLE.

 

5.            
RESTRICTED SECURITIES.

 

5.1         
No Transfer Unless Registered or Exempt.  Purchaser understands that
Purchaser may not transfer any Shares unless such Shares are registered under
the Securities Act or qualified under applicable state securities laws or unless,
in the opinion of counsel to the Company, exemptions from such registration and
qualification requirements are available.  Purchaser understands that only
the Company may file a registration statement with the SEC and that the Company
is under no obligation to do so with respect to the Shares.  Purchaser has
also been advised that exemptions from registration and qualification may not
be available or may not permit Purchaser to transfer all or any of the Shares
in the amounts or at the times proposed by Purchaser.

 

5.2         
SEC Rule 144.  In addition, Purchaser has been advised that
SEC Rule 144 promulgated under the Securities Act, which permits certain
limited sales of unregistered securities, is not presently available with
respect to the Shares and, in any event, requires that the Shares be held for a
minimum of one (1) year, and in certain cases two (2) years, after they have
been purchased and paid for (within the meaning of Rule 144). 
Purchaser understands that Rule 144 may indefinitely restrict transfer of
the Shares so long as Purchaser remains an “affiliate” of the Company or if
“current public information” about the Company (as defined in Rule 144) is
not publicly available.

 

5.3         
SEC Rule 701.  The Shares are issued pursuant to SEC
Rule 701 promulgated under the Securities Act and may become freely
tradable by non-affiliates (under

 

4

 

limited conditions regarding the method of sale)
ninety (90) days after the first sale of Common Stock of the Company to the
general public pursuant to a registration statement filed with and declared
effective by the SEC, subject to the lengthier market standoff agreement
contained in Section 7 of this Exercise Agreement or any other agreement
entered into by Purchaser.  Affiliates must comply with the provisions
(other than the holding period requirements) of Rule 144.

 

6.            
RESTRICTIONS ON TRANSFERS.

 

6.1         
Disposition of Shares.  Purchaser hereby agrees that Purchaser shall
make no disposition of the Shares (other than as permitted by this Exercise
Agreement) unless and until:

 

(a)          
Purchaser shall have
notified the Company of the proposed disposition and provided a written summary
of the terms and conditions of the proposed disposition;

 

(b)          
Purchaser shall have
complied with all requirements of this Exercise Agreement applicable to the
disposition of the Shares;

 

(c)          
Purchaser shall have
provided the Company with written assurances, in form and substance
satisfactory to counsel for the Company, that (i) the proposed disposition
does not require registration of the Shares under the Securities Act or
(ii) all appropriate actions necessary for compliance with the
registration requirements of the Securities Act or of any exemption from
registration available under the Securities Act (including Rule 144) have
been taken; and

 

(d)          
Purchaser shall have
provided the Company with written assurances, in form and substance
satisfactory to the Company, that the proposed disposition will not result in
the contravention of any transfer restrictions applicable to the Shares
pursuant to the provisions of the Regulations referred to in Section 4.2
hereof.

 

6.2         
Restriction on Transfer.  Purchaser shall not transfer, assign, grant a
lien or security interest in, pledge, hypothecate, encumber or otherwise
dispose of any of the Shares which are subject to the Company’s Repurchase
Option or the Company’s Right of First Refusal described below, except as
permitted by this Exercise Agreement.

 

6.3         
Transferee Obligations.  Each person (other than the Company) to whom
the Shares are transferred by means of one of the permitted transfers specified
in this Exercise Agreement must, as a condition precedent to the validity of
such transfer, acknowledge in writing to the Company that such person is bound
by the provisions of this Exercise Agreement and that the transferred Shares
are subject to (i) both the Company’s Repurchase Option and the Company’s Right
of First Refusal granted hereunder and (ii) the
market stand-off provisions of Section 7 hereof, to the same extent such
Shares would be so subject if retained by the Purchaser.

 

7.            
MARKET STANDOFF AGREEMENT.  Purchaser agrees in connection with any
registration of the Company’s securities that, upon the request of the Company
or the underwriters managing any public offering of the Company’s securities,
Purchaser will not, (i)

 

5

 

lend, offer, pledge, sell, contract to sell, sell any
option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase, or otherwise transfer or dispose of,
directly or indirectly, any shares of Common Stock or any securities
convertible into or exercisable or exchangeable for Common Stock (whether such
shares or any such securities are then owned by Purchaser or are thereafter
acquired), or (ii) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of
the Common Stock, whether any such transaction described in clause (i) or (ii)
above is to be settled by delivery of Common Stock or such other securities, in
cash or otherwise, without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed one
hundred eighty (180) days) after the effective date of such registration
requested by such managing underwriters and subject to all restrictions as the
Company or the underwriters may specify.  Purchaser further agrees to
enter into any agreement required by the underwriters to implement the
foregoing.  The underwriters in connection with any public offering of the
Company’s securities are intended third party beneficiaries of this
Section 7 and shall have the right, power and authority to enforce the
provisions hereof as though they were a party hereto.

 

8.            
Company’s Repurchase Option for Unvested Shares.  The
Company, or its assignee, shall have the option to repurchase all or a portion
of the Purchaser’s Unvested Shares (as defined in Section 2.2 of the Stock
Option Agreement) on the terms and conditions set forth in this Section (the “Repurchase Option”)
if Purchaser is Terminated for any reason, or no reason, including without
limitation, Purchaser’s death, Disability, voluntary resignation or termination
by the Company with or without Cause.  Notwithstanding the foregoing, the
Company shall retain the Repurchase Option for Unvested Shares only as to that
number of Unvested Shares (whether or not exercised) that exceeds the number of
Vested Shares which remain unexercised.

 

8.1         
Termination and Termination Date.  In case of any dispute as to whether Purchaser
is Terminated, the Committee shall have discretion to determine whether
Purchaser has been Terminated and the effective date of such Termination (the “Termination Date”).

 

8.2         
Exercise of Repurchase Option.  At any time within ninety (90) days after the
Purchaser’s Termination Date (or, in the case of securities issued upon
exercise of an Option after the Purchaser’s Termination Date, within ninety
(90) days after the date of such exercise), the Company, or its assignee, may
elect to repurchase any or all the Purchaser’s Unvested Shares by giving
Purchaser written notice of exercise of the Repurchase Option.

 

8.3         
Calculation of Repurchase Price for Unvested Shares. 
The Company or its assignee shall have the option to repurchase from
Purchaser (or from Purchaser’s personal representative as the case may be) the
Unvested Shares at the Purchaser’s Exercise Price, proportionately adjusted for
any stock split or similar change in the capital structure of the Company as
set forth in Section 3(b) of the Plan (the “Repurchase Price”).

 

8.4         
Payment of Repurchase Price.  The Repurchase Price shall be payable, at the
option of the Company or its assignee, by check or by cancellation of all or a
portion of any outstanding indebtedness owed by Purchaser to the Company or
such assignee, or by any

 

6

 

combination thereof.  The Repurchase Price shall
be paid without interest within ninety (90) days after exercise of the
Repurchase Option.

 

8.5         
Right of Termination Unaffected.  Nothing in this Exercise Agreement shall be
construed to limit or otherwise affect in any manner whatsoever the right or
power of the Company (or any Parent or Subsidiary of the Company) to terminate
Purchaser’s employment or other relationship with Company (or the Parent or
Subsidiary of the Company) at any time, for any reason or no reason, with or
without Cause.

 

9.            
COMPANY’S RIGHT OF FIRST REFUSAL.  Unvested Shares may not be sold or otherwise
transferred by Purchaser without the Company’s prior written consent except a
transfer without consideration to a member of the Purchaser’s Immediate Family
so long as such transferee agrees to be bound by the terms of this Agreement
(including without limitation the Repurchase Option and Right of First
Refusal).  Before any Vested Shares held by Purchaser or any transferee of
such Vested Shares (either sometimes referred to herein as the “Holder”) may be sold
or otherwise transferred (including, without limitation, a transfer by gift or
operation of law), the Company and/or its assignee(s) will have a right of
first refusal to purchase the Vested Shares to be sold or transferred (the “Offered Shares”) on
the terms and conditions set forth in this Section (the “Right of First Refusal”).

 

9.1         
Notice of Proposed Transfer.  The Holder of the Offered Shares will deliver
to the Company a written notice (the “Notice”) stating:  (i) the Holder’s
bona fide intention to sell or otherwise transfer the Offered Shares;
(ii) the name and address of each proposed purchaser or other transferee
(the “Proposed
Transferee”); (iii) the number of Offered Shares to be
transferred to each Proposed Transferee; (iv) the bona fide cash price or
other consideration for which the Holder proposes to transfer the Offered
Shares (the “Offered
Price”); and (v) that the Holder acknowledges this Notice
is an offer to sell the Offered Shares to the Company and/or its assignee(s)
pursuant to the Company’s Right of First Refusal at the Offered Price as
provided for in this Exercise Agreement.

 

9.2         
Exercise of Right of First Refusal.  At any time within thirty (30) days after the
date of the Notice, the Company and/or its assignee(s) may, by giving written
notice to the Holder, elect to purchase all (or, with the consent of the
Holder, less than all) the Offered Shares proposed to be transferred to any one
or more of the Proposed Transferees named in the Notice, at the purchase price,
determined as specified below.

 

9.3         
Purchase Price.  The purchase price for the Offered Shares purchased under this
Section will be the Offered Price, provided that if the Offered Price
consists of no legal consideration (as, for example, in the case of a transfer
by gift) the purchase price will be the fair market value of the Offered Shares
as determined in good faith by the Board.  If the Offered Price includes
consideration other than cash, then the value of the non-cash consideration, as
determined in good faith by the Board, will conclusively be deemed to be the
cash equivalent value of such non-cash consideration.

 

9.4         
Payment. 
Payment of the purchase price for the Offered Shares will be payable, at the
option of the Company and/or its assignee(s) (as applicable), by check or by
cancellation of all or a portion of any outstanding purchase money indebtedness
owed by the Holder to the Company (or to such assignee, in the case of a
purchase of Offered Shares by such

 

7

 

assignee) or by any combination thereof.  The
purchase price will be paid without interest within sixty (60) days after the
Company’s receipt of the Notice, or, at the option of the Company and/or its
assignee(s), in the manner and at the time(s) set forth in the Notice.

 

9.5         
Holder’s Right to Transfer.  If all of the Offered Shares proposed in the
Notice to be transferred to a given Proposed Transferee are not purchased by
the Company and/or its assignee(s) as provided in this Section, then the Holder
may sell or otherwise transfer such Offered Shares to each Proposed Transferee
at the Offered Price or at a higher price, provided that (i) such
sale or other transfer is consummated within one hundred twenty (120) days
after the date of the Notice, (ii) any such sale or other transfer is
effected in compliance with all applicable securities laws, and (iii) each
Proposed Transferee agrees in writing that the provisions of this
Section will continue to apply to the Offered Shares in the hands of such
Proposed Transferee.  If the Offered Shares described in the Notice are
not transferred to each Proposed Transferee within such one hundred twenty
(120) day period, then a new Notice must be given to the Company pursuant to
which the Company will again be offered the Right of First Refusal before any
Shares held by the Holder may be sold or otherwise transferred.

 

9.6         
Exempt Transfers.  Notwithstanding anything to the contrary in
this Section, the following transfers of Vested Shares will be exempt from the
Right of First Refusal: (i) the transfer of any or all of the Vested
Shares during Purchaser’s lifetime by gift or on Purchaser’s death by will or
intestacy to Purchaser’s “Immediate Family” (as defined below) or to a trust
for the benefit of Purchaser or Purchaser’s Immediate Family, provided that
each transferee or other recipient agrees in a writing satisfactory to the
Company that the provisions of this Section will continue to apply to the
transferred Vested Shares in the hands of such transferee or other recipient;
(ii) any transfer of Vested Shares made pursuant to a statutory merger or
statutory consolidation of the Company with or into another corporation or
corporations (except that the Right of First Refusal will continue to apply
thereafter to such Vested Shares, in which case the surviving corporation of
such merger or consolidation shall succeed to the rights of the Company under
this Section unless (i) the agreement of merger or consolidation
expressly otherwise provides); or (ii) any transfer of Vested Shares
pursuant to the winding up and dissolution of the Company.  As used
herein, the term “Immediate
Family” will mean Purchaser’s spouse, the lineal descendant or
antecedent, father, mother, brother or sister, child, adopted child, grandchild
or adopted grandchild of the Purchaser or the Purchaser’s spouse, or the spouse
of any of the above.

 

9.7         
Termination of Right of First Refusal.  The Right of First Refusal will terminate as
to all Shares on the effective date of the first sale of Common Stock of the
Company to the general public pursuant to a registration statement filed with
and declared effective by the SEC under the Securities Act (other than a
registration statement relating solely to the issuance of Common Stock pursuant
to a business combination or an employee incentive or benefit plan).

 

9.8         
Encumbrances on Vested Shares.  Purchaser may grant a lien or security
interest in, or pledge, hypothecate or encumber Vested Shares only if each
party to whom such lien or security interest is granted, or to whom such
pledge, hypothecation or other encumbrance is made, agrees in a writing
satisfactory to the Company that:  (i) such lien, security interest,
pledge, hypothecation or encumbrance will not apply to such Vested Shares after
they are acquired by the Company and/or its assignees under this Section; and
(ii) the provisions of this Section will continue to apply to such
Vested Shares in the hands of such party and any

 

8

 

transferee of such party.  Purchaser may not
grant a lien or security interest in, or pledge, hypothecate or encumber, any
Unvested Shares.

 

10.         
RIGHTS AS A STOCKHOLDER.  Subject to the terms and conditions of this
Exercise Agreement, Purchaser will have all of the rights of a stockholder of
the Company with respect to the Shares from and after the date that Shares are
issued to Purchaser until such time as Purchaser disposes of the Shares or the
Company and/or its assignee(s) exercise(s) the Repurchase Option or the Right
of First Refusal.  Upon an exercise of the Repurchase Option or the Right
of First Refusal, Purchaser will have no further rights as a holder of the
Shares so purchased upon such exercise, other than the right to receive payment
for the Shares so purchased in accordance with the provisions of this Exercise
Agreement, and Purchaser will promptly surrender the stock certificate(s)
evidencing the Shares so purchased to the Company for transfer or cancellation.

 

11.         
ESCROW. 
As security for Purchaser’s faithful performance of this Exercise Agreement,
unless otherwise approved by the Company, Purchaser agrees, immediately upon
receipt of the stock certificate(s) evidencing the Shares, to deliver such
certificate(s), together with the Stock Powers executed by Purchaser and by
Purchaser’s spouse, if any (with the date and number of Shares left blank), to
the Secretary of the Company or other designee of the Company (the “Escrow Holder”), who
is hereby appointed to hold such certificate(s) and Stock Powers in escrow and
to take all such actions and to effectuate all such transfers and/or releases
of such Shares as are in accordance with the terms of this Exercise
Agreement.  Purchaser and the Company agree that Escrow Holder will not be
liable to any party to this Exercise Agreement (or to any other party) for any
actions or omissions unless Escrow Holder is grossly negligent or intentionally
fraudulent in carrying out the duties of Escrow Holder under this Exercise
Agreement.  Escrow Holder may rely upon any letter, notice or other
document executed with any signature purported to be genuine and may rely on
the advice of counsel and obey any order of any court with respect to the
transactions contemplated by this Exercise Agreement.  The Shares will be
released from escrow upon termination of both the Repurchase Option and the
Right of First Refusal.

 

12.         
RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS.

 

12.1       
Legends. 
Purchaser understands and agrees that the Company will place the legends set
forth below or similar legends on any stock certificate(s) evidencing the
Shares, together with any other legends that may be required by state or U.S.
Federal securities laws, the Company’s Articles of Incorporation or Bylaws, any
other agreement between Purchaser and the Company or any agreement between
Purchaser and any third party:

 

THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES.  THESE
SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY
NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM.  INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR
THE FINANCIAL RISKS OF THIS INVESTMENT 

 

9

 

FOR AN INDEFINITE PERIOD OF
TIME.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN
FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED
TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE
STATE SECURITIES LAWS.

 

THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON PUBLIC RESALE AND TRANSFER,
INCLUDING THE RIGHT OF REPURCHASE AND RIGHT OF FIRST REFUSAL OPTIONS HELD BY
THE ISSUER AND/OR ITS ASSIGNEE(S) AS SET FORTH IN A STOCK OPTION EXERCISE
AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF
WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.  SUCH PUBLIC
SALE AND TRANSFER RESTRICTIONS INCLUDING THE RIGHT OF REPURCHASE AND RIGHT OF
FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES.

 

THE SHARES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO A 180 DAY MARKET STANDOFF RESTRICTION AS SET FORTH
IN A CERTAIN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE
SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. 
AS A RESULT OF SUCH AGREEMENT, THESE SHARES MAY NOT BE TRADED PRIOR TO 180 DAYS
AFTER THE EFFECTIVE DATE OF THE INITIAL PUBLIC OFFERING OF THE COMMON STOCK OF
THE ISSUER HEREOF.  SUCH RESTRICTION IS BINDING ON TRANSFEREES OF THESE
SHARES.

 

12.2       
Stop-Transfer Instructions.  Purchaser agrees that, to ensure compliance
with the restrictions imposed by this Exercise Agreement, the Company may issue
appropriate “stop-transfer” instructions to its transfer agent, if any, and if
the Company transfers its own securities, it may make appropriate notations to
the same effect in its own records.

 

12.3       
Refusal to Transfer.  The Company will not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred
in violation of any of the provisions of this Exercise Agreement or
(ii) to treat as owner of such Shares, or to accord the right to vote or
pay dividends to any purchaser or other transferee to whom such Shares have
been so transferred.

 

13.         
TAX CONSEQUENCES.  PURCHASER
UNDERSTANDS THAT PURCHASER MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF
PURCHASER’S PURCHASE OR DISPOSITION OF THE SHARES.  PURCHASER
REPRESENTS:  (i) THAT PURCHASER HAS CONSULTED WITH ANY TAX ADVISER
THAT PURCHASER DEEMS ADVISABLE IN CONNECTION WITH THE PURCHASE OR DISPOSITION
OF THE SHARES AND (ii) THAT PURCHASER IS NOT RELYING ON THE COMPANY FOR
ANY TAX ADVICE.  IN
PARTICULAR, IF UNVESTED SHARES ARE SUBJECT TO REPURCHASE BY THE COMPANY,
PURCHASER REPRESENTS THAT PURCHASER HAS CONSULTED WITH PURCHASER’S OWN TAX
ADVISER CONCERNING THE ADVISABILITY OF FILING AN 83(b)

 

10

 

ELECTION
WITH THE INTERNAL REVENUE SERVICE WHICH MUST BE FILED WITHIN THIRTY (30) DAYS
OF THE PURCHASE OF SHARES TO BE EFFECTIVE.  Set forth below is a brief summary as of
the date the Plan was adopted by the Board of some of the U.S. Federal and
California tax consequences of exercise of the Option and disposition of the
Shares.  THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. 
PURCHASER SHOULD CONSULT HIS OR HER OWN TAX ADVISER BEFORE EXERCISING THIS
OPTION OR DISPOSING OF THE SHARES.

 

13.1       
Exercise of Incentive Stock Option.  If the Option qualifies as an ISO, there will
be no regular U.S. Federal income tax liability or California income tax
liability upon the exercise of the Option, although the excess, if any, of the
Fair Market Value of the Shares on the date of exercise over the Exercise Price
will be treated as a tax preference item for U.S. Federal alternative minimum
tax purposes and may subject Purchaser to the alternative minimum tax in the
year of exercise.

 

13.2       
Exercise of Nonqualified Stock Option.  If the Option does not qualify as an ISO,
there may be a regular U.S. Federal income tax liability and a California
income tax liability upon the exercise of the Option.  Purchaser will be
treated as having received compensation income (taxable at ordinary income tax
rates) equal to the excess, if any, of the Fair Market Value of the Shares on
the date of exercise over the Exercise Price.  If Purchaser is or was an
employee of the Company, the Company may be required to withhold from
Purchaser’s compensation or collect from Purchaser and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income at the
time of exercise.

 

13.3       
Disposition of Shares. The following tax consequences may apply upon
disposition of the Shares.

 

(a)          
Incentive Stock
Options.  If
the Shares are held for more than twelve (12) months after the date of purchase
of the Shares pursuant to the exercise of an ISO and are disposed of more than
two (2) years after the Date of Grant, any gain realized on disposition of the
Shares will be treated as long term capital gain for federal and California
income tax purposes.  If Shares purchased under an ISO are disposed of
within the applicable one (1) year or two (2) year period, any gain realized on
such disposition will be treated as compensation income (taxable at ordinary
income rates) to the extent of the excess, if any, of the Fair Market Value of
the Shares on the date of exercise over the Exercise Price.  To the extent
the Shares were exercised prior to vesting coincident with the filing of an
83(b) Election, the amount taxed because of a disqualifying disposition will be
based upon the excess, if any, of the Fair Market Value of the Shares on the
date of vesting over the Exercise Price.

 

(b)          
Nonqualified Stock
Options.  If
the Shares are held for more than twelve (12) months after the date of purchase
of the Shares pursuant to the exercise of an NQSO, any gain realized on
disposition of the Shares will be treated as long term capital gain.

 

(c)          
Withholding.  The Company may be required to
withhold from the Purchaser’s compensation or collect from the Purchaser and
pay to the applicable taxing authorities an amount equal to a percentage of
this compensation income.

 

11

 

13.4        
Section 83(b)
Election for Unvested Shares.  With respect to Unvested Shares, which are
subject to the Repurchase Option, unless an election is filed by the Purchaser
with the Internal Revenue Service (and, if necessary, the proper state taxing
authorities), within 30 days of the
purchase of the Unvested Shares, electing pursuant to
Section 83(b) of the Code (and similar state tax provisions, if
applicable) to be taxed currently on any difference between the Exercise Price
of the Unvested Shares and their Fair Market Value on the date of purchase,
there may be a recognition of taxable income (including, where applicable,
alternative minimum taxable income) to the Purchaser, measured by the excess,
if any, of the Fair Market Value of the Unvested Shares at the time they cease
to be Unvested Shares, over the Exercise Price of the Unvested Shares.  A
form of Election under Section 83(b) is attached hereto as Exhibit 4
for reference.

 

14.         
COMPLIANCE WITH LAWS AND REGULATIONS.  The issuance and transfer of the
Shares will be subject to and conditioned upon compliance by the Company and
Purchaser with all applicable state and U.S. Federal laws and regulations and
with all applicable requirements of any stock exchange or automated quotation system
on which the Company’s Common Stock may be listed or quoted at the time of such
issuance or transfer.

 

15.         
SUCCESSORS AND ASSIGNS.  The Company may assign any of its rights under
this Exercise Agreement, including its rights to purchase Shares under the
Repurchase Option and the Right of First Refusal.  This Exercise Agreement
shall be binding upon and inure to the benefit of the successors and assigns of
the Company.  Subject to the restrictions on transfer herein set forth,
this Exercise Agreement will be binding upon Purchaser and Purchaser’s heirs,
executors, administrators, legal representatives, successors and assigns.

 

16.         
GOVERNING LAW; SEVERABILITY.  This Exercise Agreement shall be governed by
and construed in accordance with the internal laws of the State of California
as such laws are applied to agreements between California residents entered
into and to be performed entirely within California.  If any provision of
this Exercise Agreement is determined by a court of law to be illegal or
unenforceable, then such provision will be enforced to the maximum extent
possible and the other provisions will remain fully effective and enforceable.

 

17.         
NOTICES. 
Any notice required to be given or delivered to the Company shall be in writing
and addressed to the Corporate Secretary of the Company at its principal
corporate offices.  Any notice required to be given or delivered to
Purchaser shall be in writing and addressed to Purchaser at the address
indicated above or to such other address as Purchaser may designate in writing
from time to time to the Company.  All notices shall be deemed effectively
given upon personal delivery, (i) three (3) days after deposit in the
United States mail by certified or registered mail (return receipt requested),
(ii) one (1) business day after its deposit with any return receipt
express courier (prepaid), or (iii) one (1) business day after
transmission by rapifax or telecopier.

 

18.         
FURTHER INSTRUMENTS.  The parties agree to execute such further
instruments and to take such further action as may be reasonably necessary to
carry out the purposes and intent of this Exercise Agreement.

 

19.         
DEFINITIONS.  As used in this Plan, the following terms will
have the following meanings:

 

12

 

“Stock Option  Agreement” means the
signed written agreement between the Company and the Purchaser setting forth
the terms and conditions of this Option.

 

“Board” means the
Board of Directors of the Company.

 

“Code” means the
Internal Revenue Code of 1986, as amended.

 

“Disability” means a
disability, whether temporary or permanent, partial or total, as determined by
the Committee.

 

“Parent” means any
corporation (other than the Company) in an unbroken chain of corporations
ending with the Company if each of such corporations other than the Company
owns stock representing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain.

 

“SEC” means the
Securities and Exchange Commission.

 

“Securities Act” means
the Securities Act of 1933, as amended.

 

“Termination” or “Terminated” means
with respect to a Purchaser, that the Purchaser has for any reason ceased to
provide services as an employee, officer, director or consultant to the Company
or a Parent or Subsidiary of the Company.  Purchaser will not be deemed to
have ceased to provide services in the case of (i) sick leave,
(ii) military leave, or (iii) any other leave of absence approved by
the Committee, provided that such leave is for a period of not more than ninety
(90) days (a) unless reinstatement (or, in the case of an employee with an
ISO, reemployment) upon the expiration of such leave is guaranteed by contract
or statute, or (b) unless provided otherwise pursuant to formal policy
adopted from time to time by the Company’s Board and issued and promulgated in
writing.  If Purchaser is on (i) sick leave, (ii) military leave
or (iii) an approved leave of absence, the Committee may make such
provisions respecting suspension of vesting of the Shares while on leave from
the Company or a Parent or Subsidiary of the Company as it may deem
appropriate, except that in no event may an Option be exercised after the
expiration of the term set forth in the Stock Option Agreement.

 

“Unvested Shares”
means “Unvested Shares”
as defined in the Stock Option Agreement.

 

“Vested Shares” means
“Vested Shares
“ as defined in the Stock Option Agreement.

 

20.         
HEADINGS. 
The captions and headings of this Exercise Agreement are included for ease of
reference only and will be disregarded in interpreting or construing this
Exercise Agreement.  All references herein to Sections will refer to
Sections of this Exercise Agreement.

 

21.         
ENTIRE AGREEMENT.  The Plan, the Stock Option Agreement and this
Exercise Agreement, together with all Exhibits thereto, constitute the entire
agreement and understanding of the parties with respect to the subject matter
of this Exercise Agreement, and

 

13

 

supersede all prior understandings and agreements,
whether oral or written, between the parties hereto with respect to the
specific subject matter hereof.

 

14

 

IN
WITNESS WHEREOF,
the Company has caused this Exercise Agreement to be executed by its duly
authorized representative and Purchaser has executed this Exercise Agreement as
of the Effective Date, indicated above.

 

	
  IGN
  ENTERTAINMENT, INC.

  	
  PURCHASER

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Please print name)

  	
  (Please print name)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Please print title)

  	
   

  

 

 

LIST
OF EXHIBITS

 

	
  Exhibit 1:

  	
   

  	
  Stock Power and
  Assignment Separate from Stock Certificate

  
	
   

  	
   

  	
   

  
	
  Exhibit 2:

  	
   

  	
  Spouse Consent

  
	
   

  	
   

  	
   

  
	
  Exhibit 3:

  	
   

  	
  Copy of Purchaser’s
  Check

  
	
   

  	
   

  	
   

  
	
  Exhibit 4:

  	
   

  	
  Section 83(b)
  Election

  

 

 

EXHIBIT 1

 

STOCK
POWER AND ASSIGNMENT

SEPARATE FROM STOCK CERTIFICATE

 

 

Stock
Power And Assignment

Separate From Stock Certificate

 

FOR VALUE RECEIVED and pursuant to that certain Stock
Option Exercise Agreement No.
                
dated as of
                                ,
200         , (the “Agreement”), the
undersigned hereby sells, assigns and transfers unto
                                         ,
                
shares of the Common Stock of IGN Entertainment, Inc., a Delaware corporation
(the “Company”),
standing in the undersigned’s name on the books of the Company represented by
Certificate No(s). 
                
delivered herewith, and does hereby irrevocably constitute and appoint the
Secretary of the Company as the undersigned’s attorney-in-fact, with full power
of substitution, to transfer said stock on the books of the Company.  THIS ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE
AGREEMENT AND ANY EXHIBITS THERETO.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Please Print Name)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Spouse’s Signature, if
  any)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Please Print Spouse’s
  Name)

  

 

Instructions
to Purchaser: 
Please do not fill in any blanks other than the signature line.  The
purpose of this Stock Power and Assignment is to enable the Company to exercise
pursuant to its “Repurchase Option” and/or “Right
of First Refusal” set forth in the Exercise Agreement without requiring
additional signatures on the part of the Purchaser or Purchaser’s Spouse.

 

 

EXHIBIT 2

 

SPOUSE CONSENT

 

 

Spouse
Consent

 

The undersigned spouse of
                                                   
(the “Purchaser”)
has read, understands, and hereby approves the Stock Option Exercise Agreement
between Purchaser and the Company (the “Agreement”).  In consideration of the
Company’s granting my spouse the right to purchase the Shares as set forth in
the Agreement, the undersigned hereby agrees to be irrevocably bound by the
Agreement and further agrees that any community property interest I may have in
the Shares shall similarly be bound by the Agreement.  The undersigned
hereby appoints Purchaser as my attorney-in-fact with respect to any amendment
or exercise of any rights under the Agreement.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name of
  Purchaser’s Spouse

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature of
  Purchaser’s Spouse

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT 4

 

SECTION 83(b)
ELECTION

 

 

ELECTION
UNDER SECTION 83(b) OF THE INTERNAL REVENUE CODE

 

The undersigned Taxpayer hereby elects, pursuant to
Section 83(b) of the Internal Revenue Code of 1986, as amended, to include
the excess, if any, of the fair market value of the property described below at
the time of transfer over the amount paid for such property, as compensation
for services in the calculation of: (1) regular gross income; (2) alternative
minimum taxable income or (3) disqualifying disposition gross income, as
the case may be.

 

	
  1.

  	
   

  	
  TAXPAYER’S NAME:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TAXPAYER’S ADDRESS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SOCIAL SECURITY NUMBER:

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  The property with
  respect to which the election is made is described as follows:
               
  shares of Common Stock of IGN Entertainment, Inc., a Delaware corporation
  (the “Company”)
  which were transferred upon exercise of an option by Company, which is
  Taxpayer’s employer or the corporation for whom the Taxpayer performs
  services.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  The date on which the
  shares were transferred pursuant to the exercise of the option was
                                         ,
               
  and this election is made for calendar year
               .

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  The shares received
  upon exercise of the option are subject to the following restrictions: 
  The Company may repurchase all or a portion of the shares at the Taxpayer’s
  original purchase price under certain conditions at the time of Taxpayer’s
  termination of employment or services.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  The fair market value
  of the shares (without regard to restrictions other than restrictions which
  by their terms will never lapse) was
  $             per
  share at the time of exercise of the option.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  The amount paid for
  such shares upon exercise of the option was
  $             per
  share.

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  The Taxpayer has
  submitted a copy of this statement to the Company.

  

 

THIS ELECTION MUST BE FILED WITH THE INTERNAL REVENUE
SERVICE (“IRS”),
AT THE OFFICE WHERE THE TAXPAYER FILES ANNUAL INCOME TAX RETURNS, WITHIN 30 DAYS
AFTER THE DATE OF TRANSFER OF THE SHARES, AND MUST ALSO BE FILED WITH THE
TAXPAYER’S INCOME TAX RETURNS FOR THE CALENDAR YEAR.  THE ELECTION CANNOT
BE REVOKED WITHOUT THE CONSENT OF THE IRS.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer’s Signature

  

 

 

IGN
Entertainment, Inc.

 

83(b)
Filing Letter

 

	
   

  	
  Date:

  	
   

  	
   

  

 

 

REGISTERED MAIL
NO.:                           

Return Receipt Requested

 

 

Internal Revenue Service

[5045 East Butler Avenue

Fresno, CA 93888]*

(this address depends on your residence)

 

Re:         
Section 83(b)
Election

Name:              

SS:                   

 

Dear Sir/Madam:

 

Enclosed please find the
original and one copy of a Section 83(b) Election which I am filing on
behalf of myself.

 

Please acknowledge your
receipt of this filing by signing or stamping and dating the copy of the
Election Form and returning it to the undersigned.  A self-addressed,
stamped envelope is provided for your convenience.

 

	
   

  	
  Very Truly Yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Enclosures

 

cc:           IGN Entertainment, Inc.

Sean Deorsey, Chief
Accounting Officer

 

 

[NOTE:  DELETE THIS PAGE BEFORE FINALIZING THE
LETTER]

 

Election forms are to be filed at the applicable IRS
address below which is where the individual filing the 83(b) form files his or
her tax returns.

 

This information was last revised and updated on
December 28, 2001.  See
http://www.unclefed.com/Tax-Help/mailingaddresses.html

 

IF You
Live
In                                     mail
to Internal Revenue Service Center at: 

 

	
  Florida, Georgia, South
  Carolina, West Virginia

  	
   

  	
  Atlanta, GA 39901-0002

  
	
   

  	
   

  	
   

  
	
  Delaware, New Jersey,
  New York (New York City and counties of
  Nassau, Rockland, Suffolk, and Westchester)

  	
   

  	
  Holtsville, NY
  00501-0002

  
	
   

  	
   

  	
   

  
	
  New York (all other counties), Connecticut,
  Maine, Massachusetts, New Hampshire, Rhode Island, Vermont

  	
   

  	
  Andover, MA 05501-0002

  
	
   

  	
   

  	
   

  
	
  Illinois, Iowa, Kansas,
  Minnesota, Missouri, Oregon, Wisconsin

  	
   

  	
  Kansas City, MO
  64999-0002

  
	
   

  	
   

  	
   

  
	
  District of Columbia,
  Indiana, Maryland, Pennsylvania, Virginia

  	
   

  	
  Philadelphia, PA
  19255-0002

  
	
   

  	
   

  	
   

  
	
  Michigan, Ohio

  	
   

  	
  Cincinnati, OH
  45999-0002

  
	
   

  	
   

  	
   

  
	
  Colorado, Idaho,
  Montana, New Mexico, Oklahoma, Texas, Wyoming

  	
   

  	
  Austin, TX 73301-0002

  
	
   

  	
   

  	
   

  
	
  Arizona, California
  (counties of Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del
  Norte, El Dorado, Glenn, Humboldt, Lake, Lassen, Marin, Mendocino, Modoc,
  Napa, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra,
  Siskiyou, Solano, Sonoma, Sutter, Tehama, Trinity, Yolo, and Yuba), Nevada,
  North Dakota, South Dakota, Utah, Washington

  	
   

  	
  Ogden, UT 84201-0002

  
	
   

  	
   

  	
   

  
	
  California (all other counties), Alaska, Hawaii

  	
   

  	
  Fresno, CA 93888-0002

  
	
   

  	
   

  	
   

  
	
  Alabama, Arkansas,
  Kentucky, Louisiana, Mississippi, Nebraska, North Carolina, Tennessee

  	
   

  	
  Memphis, TN 37501-0002

  
	
   

  	
   

  	
   

  
	
  All APO (Army Post
  Office) and FPO (Fleet Post Office) addresses, American Samoa, nonpermanent
  residents of Guam or the Virgin Islands*, Puerto Rico (or if excluding income under Internal Revenue Code
  section 933), a foreign country: U.S. citizens and those
  filing Form 2555, 2555-EZ, or 4563

  	
   

  	
  Philadelphia, PA
  19255-0215 USA

  

 

 

	
  * Permanent residents
  of Guam should use:

  

  Department of Revenue and Taxation,

  Government of Guam,

  P.O. Box 23607,

  GMF, GU 96921;

  	
   

  
	
   

  	
   

  
	
  *Permanent residents of
  Virgin Islands should use:

  

  V.I. Bureau of Internal Revenue,

  9601 Estate Thomas,

  Charlotte Amalie,

  St. Thomas, VI 00802.

  	
   

  

 

 

IGN
Entertainment, Inc.

83(b) Filing Instructions

 

The 83b
must be filed with the IRS within 30 days of exercising your options.  The
timing of this is crucial.

 

You should have received the following documents along
with these instructions:

 

•      83(b) Election Form

•      83(b) Filing Letter

•      Receipt for Registered Mail

•      Domestic Return Receipt

 

Please follow these instructions carefully:

 

1.     Complete and sign the 83(b) Election Form.

2.     Address an envelope to the IRS.

3.     Self address and stamp a letter envelope to be
included in your mailing to the IRS.

4.     Complete the registered mail slip and domestic return
receipt provided.  The address of the IRS is in the 83(b) Filing
Letter.  Check “registered” under Service Type on the Return Receipt.

5.     Complete and sign the 83(b) Filing Letter.  The
Registered Mail No. should be filled in by you once a customer service
representative at the post office assigns it.

6.     Make three copies of the 83(b) Election Form and 83(b)
Filing Letter; one for your records, one to deliver to the IGN Finance
Department, and one to include in the IRS mailing to be returned you after it
has been file-stamped by the IRS.

7.     Mail the completed 83(b) Election Form, Filing Letter,
and a self-addressed, stamped envelope to the IRS.  Remember to fill in
the Registered Mail No. on the 83(b) Filing Form once you receive it from the
customer service rep at the post office.

8.     You should receive a copy of your 83(b) Election
stamped in red with “IRS received.”  Staple the red-stamped document to
your Stock Option Exercise package under Exhibit 4.  Keep a second copy of
this document for current year tax filing.

 

Please contact the Finance Department with any
questions.Exhibit
10.05

 

STANDARD OFFICE LEASE

 

	
  1.

  	
  BASIC LEASE PROVISIONS.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  DATE:

  	
   

  	
  October 12, 2004

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.2

  	
  LANDLORD:

  	
   

  	
  The Realty Associates
  Fund VI, L.P.,

  a Delaware limited partnership

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.3

  	
  TENANT:

  	
   

  	
  IGN Entertainment, Inc.,
  a Delaware corporation

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.4

  	
  BUILDING ADDRESS:

  	
   

  	
  3070 Bristol Street,
  Costa Mesa, California 92626

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.5

  	
  SUITE NUMBER(S):

  	
   

  	
  200

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.6

  	
  RENTABLE AREA OF
  PREMISES:

  (in square feet)

  	
   

  	
  14,510

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.7

  	
  USE:

  	
   

  	
  General office

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.8

  	
  INITIAL TERM:

  	
   

  	
  Five (5) years
  (subject to extension in accordance with Addendum section 9)

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.9

  	
  COMMENCEMENT DATE:

  	
   

  	
  January 1, 2005

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.10

  	
  MONTHLY BASE RENT:

  	
   

  	
  Commencement Date
  through 12th full calendar month: 

  $26,843.50;

  13th through 24th month: $27,569.00;

  25th through 36th month: $28,294.50;

  37th through 48th month: $29,020.00; and

  49th month through end of initial term: $29,745.50.

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.11

  	
  BASE RENT PAID UPON
  EXECUTION:

  	
   

  	
  $26,843.50

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  APPLIED To:

  (insert month(s))

  	
   

  	
  First full calendar
  month of term of Lease

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.12

  	
  SECURITY DEPOSIT:

  	
   

  	
  $32,720.05

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.13

  	
  TENANT’S PERCENTAGE
  SHARE:

  	
   

  	
  See section 4.2(a)

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.14

  	
  BASE YEAR:

  	
   

  	
  2005

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.15

  	
  NUMBER OF PARKING
  SPACES:

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  RESERVED:

  	
   

  	
  0

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  UNRESERVED:

  	
   

  	
  48

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  1.16

  	
  INITIAL MONTHLY PARKING
  RATES PER VEHICLE:

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
  RESERVED:

  	
   

  	
  N/A

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

								

 

1

 

	
   

  	
   

  	
  UNRESERVED:

  	
   

  	
  See Addendum

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.17

  	
  REAL ESTATE BROKER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LANDLORD:

  	
   

  	
  Orion Property Partners

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  	
   

  	
  NAI Capital Commercial

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.18

  	
  EXHIBITS ATTACHED TO
  LEASE:

  	
   

  	
  Exhibit A - “Premises”;

  Exhibit B - “Verification Letter”;

  Exhibit C – “Rules and Regulations”;

  Exhibit D – Work Letter Agreement”;

  Exhibit E – Addendum to Lease;

  Exhibit F - “Transfer Agreements”

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.19

  	
  ADDRESSES FOR NOTICES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LANDLORD:

  	
   

  	
  The Realty Associates
  Fund VI, L.P.

  c/o TA Associates Realty

  1301 Dove Street, Suite 860

  Newport Beach, California 92660

  Attention: Asset Manager/South Coast Corporate Center

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WITH A COPY TO:

  	
   

  	
  Davis Partners LLC

  3070 Bristol Street, Suite 440

  Costa Mesa, California 92626

  Attention: Property Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  	
   

  	
  IGN Entertainment, Inc.

  8000 Marina Boulevard, Fourth Floor

  Brisbane, California 94005

  Attention: President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WITH A COPY TO:

  	
   

  	
  IGN Entertainment, Inc.

  8000 Marina Boulevard, Fourth Floor

  Brisbane, California 94005

  Attention: Mr. Jim Merryman

  

 

2

 

1.20                           INTERPRETATION.  The
Basic Lease Provisions shall be interpreted in conjunction with all of the
other terms and conditions of this Lease. 
Other terms and conditions of this Lease modify and expand on the Basic
Lease Provisions.  If there is a conflict
between the Basic Lease Provisions and the other terms and conditions of this
Lease, the other terms and conditions shall control.

 

2.                                       PREMISES.

 

2.1                                 LEASE OF PREMISES AND
DEFINITION OF PROJECT.  The “Premises” shall mean the area shown on Exhibit “A”
to this Lease.  Landlord hereby leases to
Tenant, and Tenant hereby leases from Landlord, upon all of the conditions set
forth herein the Premises, together with certain rights to the Common Areas as
hereinafter specified.  The Premises
shall not include an easement for light, air or view.  The building of which the Premises is a part
(the “Building”), the Common Areas (as defined below), the land upon which the
same are located, along with all other buildings and improvements thereon or
thereunder, including all parking facilities, are herein collectively referred
to as the “Project.” The Project contains three separate office buildings, and
the office buildings are hereinafter collectively referred to as the “Buildings.”

 

2.2                                 CALCULATION OF SIZE OF
BUILDING AND PREMISES.  The number of rentable square feet included
within the Building has been calculated in accordance with the methods of
measuring rentable square feet, as that method is described in the American
National Institute Publication ANSI Z65.1-1996, as promulgated by the Building
Owners and Managers Association (the “BOMA Standard”), and that pursuant to the
BOMA Standard the number of rentable square feet within the Building is 126,864
square feet.  The number of rentable
square feet in the Premises has been calculated by measuring the number of
usable square feet within the Premises calculated in accordance with the BOMA
Standard, which is 12,550 square feet, and increasing the number of usable
square feet by fifteen and sixty two one hundredths percent (15.62%).  If the rentable square feet in the Premises
changes after this Lease is executed by Landlord and Tenant, the Base Rent and
any advance rent shall be adjusted by multiplying the new number of rentable
square feet in the Premises by the per square foot rental obtained by dividing
the Base Rent initially set forth in section 1.10 by the number of
rentable square feet initially set forth in section 1.6.  If the number of rentable square feet in the
Building or the Premises is changed, Tenant’s Share shall be adjusted as
provided in section 4.2(a).

 

2.3                                 COMMON AREAS-DEFINED.  The
term “Common Areas” is defined as all areas and facilities outside the Premises
and within the exterior boundary line of the Project that are designated by
Landlord from time to time for the general non-exclusive use of Landlord,
Tenant and the other tenants of the Project and their respective employees,
suppliers, customers and invitees, including, but not limited to, common
entrances, lobbies, corridors, stairwells, public restrooms, elevators, parking
areas, loading and unloading areas, roadways and sidewalks.

 

3.                                       TERM.

 

3.1                                 TERM AND COMMENCEMENT DATE.  The
term and Commencement Date of this Lease are as specified in sections 1.8 and
1.9.  The Commencement Date set forth in section 1.9
is an estimated Commencement Date. 
Subject to the limitations contained in section 3.3 below, the
actual Commencement Date shall be the date possession of the Premises is
tendered to Tenant in accordance with section 3.4 below; provided,
however, that the term of this Lease shall be computed from the first day of
the calendar month following the Commencement Date.  When the actual Commencement Date is
established by Landlord, Tenant shall, within five (5) business days after
Landlord’s request, complete and execute the letter attached hereto as Exhibit “B”
and deliver it to Landlord.  Tenant’s
failure to execute the letter attached hereto as Exhibit “B” within said
five (5) day period shall be a material default hereunder and shall
constitute Tenant’s acknowledgment of the truth of the facts contained in the
letter delivered by Landlord to Tenant.

 

3.2                                 DELAY IN POSSESSION. 
Notwithstanding the estimated Commencement Date specified in section 1.9,
if for any reason Landlord cannot deliver possession of the Premises to Tenant
on said date, Landlord shall not be subject to any liability therefore, nor
shall such failure affect the validity of this Lease or the obligations of
Tenant hereunder; provided, however, in such a case, Tenant shall not be
obligated to pay rent or perform any other obligation of Tenant under this
Lease, except as may be otherwise provided in this Lease, until possession of
the Premises is tendered to Tenant, as defined in section 3.4.  If Landlord shall not have tendered
possession of the

 

3

 

Premises to Tenant within ninety
(90) days following the estimated Commencement Date specified in section 1.9,
as the same may be adjusted in accordance with section 3.3 or in
accordance with the terms of any work letter agreement entered into by Landlord
and Tenant, Tenant may, at Tenant’s option, by notice in writing to Landlord
within ten (10) days after the expiration of the ninety (90) day period,
terminate this Lease.  If Tenant
terminates this Lease as provided in the preceding sentence, the parties shall
be discharged from all obligations hereunder, except that Landlord shall return
any money previously deposited with Landlord by Tenant; and provided further,
that if such written notice by Tenant is not received by Landlord within said
ten (10) day period, Tenant shall not have the right to terminate this
Lease as provided above unless Landlord fails to tender possession of the
Premises to Tenant within one hundred eighty (180) days following the estimated
Commencement Date specified in section 1.9, as the same may be adjusted in
accordance with section 3.3 or in accordance with the terms of any work
letter agreement entered into by Landlord and Tenant.  If Landlord is unable to deliver possession
of the Premises to Tenant on the Commencement Date due to a “Force Majeure
Event,” the Commencement Date shall be extended by the period of the delay
caused by the Force Majeure Event.  A
Force Majeure Event shall mean fire, earthquake, weather delays or other acts
of God, strikes, boycotts, war, riot, insurrection, embargoes, shortages of
equipment, labor or materials, delays in issuance of governmental permits or
approvals, or any other cause (except financial) beyond the reasonable control
of Landlord.

 

3.3                                 DELAYS CAUSED BY TENANT. 
There shall be no abatement of rent, and the ninety (90) day period and
the one hundred eighty (180) day period specified in section 3.2 shall be
deemed extended, to the extent of any delays caused by acts or omissions of
Tenant, Tenant’s agents, employees and contractors, or for Tenant Delays as
defined in the Work Letter Agreement attached to this Lease as Exhibit D
(the “Work Letter”), if any, that result in a delay in the completion of the
Improvements, as defined in the Work Letter Agreement (hereinafter “Tenant
Delays”).  Tenant shall pay to Landlord
an amount equal to one thirtieth (1/30th) of the Base Rent due for the first
full calendar month of the Lease term for each day of Tenant Delay.  For purposes of the foregoing calculation,
the Base Rent payable for the first full calendar month of the term of this
Lease shall not be reduced by any abated rent, conditionally waived rent, free
rent or similar rental concessions, if any. 
Landlord and Tenant agree that the foregoing payment constitutes a fair
and reasonable estimate of the damages Landlord will incur as the result of a
Tenant Delay.  If Landlord contends that
a Tenant Delay has occurred, Landlord shall notify Tenant in writing (the “Delay
Notice”) within five (5) business days after the date upon which such
contended Tenant Delay became known to Landlord.  Landlord’s failure to deliver such notice to
Tenant with respect to a contended Tenant Delay shall be deemed to be a waiver
by Landlord of such contended Tenant Delay. 
If such actions, inaction or circumstances described in the Delay Notice
are not cured within one (1) business day of Tenant’s receipt of the Delay
Notice and if such actions, inaction or circumstances otherwise qualified as a
Tenant Delay, then a Tenant Delay shall be deemed to have occurred commencing
as of the date the Tenant Delay first occurred and ending on the date that
Tenant has taken the action or remedied the circumstance that caused the Tenant
Delay to commence.  Within thirty (30)
days after Landlord tenders possession of the Premises to Tenant, Landlord
shall notify Tenant of Landlord’s reasonable estimate of the date Landlord
could have delivered possession of the Premises but for the total amount of
Tenant Delay.  Within ten (10) days
after receiving such notice, Tenant shall pay to Landlord the amount described
above for the period of Tenant Delay.

 

3.4                                 TENDER OF POSSESSION. 
Possession of the Premises shall be deemed tendered to Tenant when
Landlord’s architect or agent has determined that (a) the Improvements are
substantially completed, and, if necessary, have been approved by the
appropriate governmental entity, (b) the Project utilities are ready for
use in the Premises, (c) Tenant has reasonable access to the Premises, and
(d) three (3) days shall have expired following advance written
notice to Tenant of the occurrence of the matters described in (a), (b) and
(c) above of this section 3.4. 
Landlord shall use its best efforts to keep Tenant advised during the
course of the construction or installation of the Improvements of the
anticipated date of substantial completion to enable Tenant to schedule the
move-in of personnel following the notice to be given under (d) above of
this section 3.4.  The Improvements
shall be deemed “substantially” completed when the Improvements have been
completed except for minor punch-list items or defects which can be completed
or remedied after Tenant occupies the Premises without causing substantial
interference with Tenant’s use of the Premises.

 

3.5                                 EARLY POSSESSION.  If
Tenant occupies the Premises prior to the Commencement Date, such occupancy
shall be subject to all provisions of this Lease, such occupancy shall not
change the termination date, and Tenant shall pay Base Rent and all other
charges provided for in this Lease during the period of such occupancy.  Provided that Tenant does not interfere with
or delay the completion by Landlord or its agents or contractors of the

 

4

 

construction of any tenant
improvements, Tenant shall have the right to enter the Premises up to twenty one
(21) days prior to the anticipated Commencement Date for the purpose of
installing furniture, trade fixtures, cabling equipment, and similar
items.  Tenant shall be liable for any
damages or delays caused by Tenant’s activities at the Premises.  Provided that Tenant has not begun operating
its business from the Premises, and subject to all of the terms and conditions
of the Lease, the foregoing activity shall not constitute the delivery of
possession of the Premises to Tenant and the Lease term shall not commence as a
result of said activities.  Prior to
entering the Premises Tenant shall obtain all insurance it is required to
obtain by the Lease and shall provide certificates of said insurance to
Landlord.  Tenant shall coordinate such
entry with Landlord’s building manager, and such entry shall be made in
compliance with all terms and conditions of this Lease and the Rules and
Regulations attached hereto.

 

4.                                       RENT.

 

4.1                                 BASE RENT. 
Tenant shall pay to Landlord the Base Rent for the Premises set forth in
section 1.10, without offset or deduction on the first day of each
calendar month.  At the time Tenant
executes this Lease it shall pay to Landlord the advance Base Rent described in
section 1.11.  Base Rent for any
period during the term hereof which is for less than one month shall be
prorated based upon the actual number of days of the calendar month
involved.  Base Rent and all other
amounts payable to Landlord hereunder shall be payable to Landlord in lawful
money of the United States, and Tenant shall be responsible for delivering said
amounts to Landlord at the address stated herein or to such other persons or to
such other places as Landlord may designate in writing.

 

4.2                                 OPERATING EXPENSE INCREASES. 
Tenant shall pay to Landlord during the term hereof, in addition to the
Base Rent, Tenant’s Share of the amount by which all Operating Expenses for
each Comparison Year exceeds the amount of all Operating Expenses for the Base
Year.  If less than 95% of the rentable
square feet in the Project is occupied by tenants or Landlord is not supplying
services to 95% of the rentable square feet of the Project at any time during
any calendar year (including the Base Year), Operating Expenses for such
calendar year shall be an amount equal to the Operating Expenses which would
normally be expected to be incurred had 95% of the Project’s rentable square
feet been occupied and had Landlord been supplying services to 95% of the
Project’s rentable square feet throughout such calendar year (hereinafter the “Grossed
Up Operating Expenses”).  Landlord’s good
faith estimate of Grossed Up Operating Expenses shall not be subject to
challenge or recalculation by Tenant. 
Tenant’s Share of Operating Expense increases shall be determined in
accordance with the following provisions:

 

(a)                                  “Tenant’s Share” as used in this Lease shall
mean the percentage of the cost of Operating Expenses for which Tenant is
obligated to reimburse Landlord pursuant to this Lease.  Notwithstanding anything to the contrary
contained in section 1.13, Landlord shall have the right to determine
Tenant’s Share of the cost of Operating Expenses using any one or more of the
following three methods, and Tenant hereby agrees that any one of the following
three methods of allocation is reasonable: (a) by multiplying the cost of
all Operating Expenses by a fraction, the numerator of which is the number of
square feet of rentable space in the Premises and the denominator of which is
the number of square feet of rentable space in all Buildings in the Project; or
(b) with respect to an Operating Expense attributable solely to the
Building, requiring Tenant to pay that portion of the cost of the Operating
Expense that is obtained by multiplying such cost by a fraction, the numerator
of which is the number of square feet of rentable space in the Premises and the
denominator of which is the number of square feet of rentable space in the
entire Building.

 

(b)                                 “Comparison Year” is defined as each calendar
year during the term of this Lease after the Base Year.  Tenant’s Share of the Operating Expense
increases for the last Comparison Year of the Lease Term shall be prorated
according to that portion of such Comparison Year as to which Tenant is
responsible for a share of such increase.

 

(c)                                  “Operating Expenses” shall include all costs,
expenses and fees incurred by Landlord in connection with or attributable to
the Project, including but not limited to, the following items: (i) all
costs, expenses and fees associated with or attributable to the management,
operation, repair, maintenance and alteration of the Project, or any part
thereof, including but not limited to, the following: (A) all surfaces,
coverings, decorative items, carpets, drapes, window coverings, parking areas,
loading and unloading areas, trash areas, roadways, sidewalks, stairways,
walls, structural elements, landscaped areas, striping, bumpers, irrigation
systems, lighting facilities, building exteriors and roofs, fences and gates; (B) all
heating, ventilating and air conditioning equipment (“HVAC”) (including, but
not limited to, the cost of replacing or retrofitting HVAC equipment to comply
with laws regulating

 

5

 

or prohibiting the use or
release of chlorofluorocarbons or hydrochlorofluorocarbons), plumbing, mechanical,
electrical systems, life safety systems and equipment, telecommunication
equipment, elevators, escalators, tenant directories, fire detection systems
including sprinkler system maintenance and repair; (ii) the cost of trash
disposal, janitorial services and security services and systems; (iii) the
cost of all insurance purchased by Landlord and enumerated in section 8 of
this Lease, including any deductibles; provided, however, no single deductible
amount shall exceed Fifty Thousand Dollars ($50,000); (iv) the cost of
water, sewer, gas, electricity, and other utilities available at the Project
and paid by Landlord; (v) the cost of labor, salaries and applicable
fringe benefits incurred by Landlord in connection with personnel not above the
level of Building manager who are directly engaged in the operation, repair and
maintenance of the Project; (vi) the cost of materials, supplies and tools
used in managing, maintaining and/or cleaning the Project; (vii) the cost
of accounting fees, management fees, legal fees (excluding legal fees relating
to lease negotiation or enforcement) and consulting fees attributable to the
ownership, operation, management, maintenance and repair of the Project plus
the cost of any space occupied by the property manager and leasing agent (if
Landlord is the property manager, Landlord shall be entitled to receive a fair
market management fee); (viii) the cost of operating, replacing, modifying
and/or adding improvements or equipment mandated by any law, statute,
regulation or directive of any governmental agency and any repairs or removals
necessitated thereby (including, but not limited to, the cost of complying with
the Americans With Disabilities Act and regulations of the Occupational Safety
and Health Administration); (ix) payments made by Landlord under any
easement, license, operating agreement, declaration, restrictive covenant, or
instrument pertaining to the payment or sharing of costs among property owners;
(x) any business property taxes or personal property taxes imposed upon the
fixtures, machinery, equipment, furniture and personal property used in
connection with the operation of the Project; (xi) the cost of all business
licenses, any gross receipt taxes based on rental income or other payments
received by Landlord, commercial rental taxes or any similar taxes or fees;
(xii) transportation taxes, fees or assessments, including but not limited to,
mass transportation fees, metrorail fees, trip fees, regional and
transportation district fees, (xiii) all costs and expenses associated with or
related to the implementation by Landlord of any transportation demand
management program or similar program; (xiv) fees assessed by any air quality
management district or other governmental or quasi-governmental entity regulating
pollution; (xv) the cost of maintaining, repairing, securing and replacing
intrabuilding network cabling (“INC”); and (xvi) the cost of any other service
provided by Landlord or any cost that is elsewhere stated in this Lease to be
an “Operating Expense.” Real Property Taxes shall be paid in accordance with section 10
below and shall not be included in Operating Expenses.

 

(d)                                 Operating Expenses shall not include any
expenses paid by any tenant directly to third parties, or as to which Landlord
is otherwise reimbursed by any third party or by insurance proceeds.

 

(e)                                  If the cost incurred in making an improvement
or replacing any equipment is not fully deductible as an expense in the year
incurred in accordance with generally accepted accounting principles, the cost
included in Operating Expenses shall be amortized over the useful life of the
improvement or equipment, as reasonably determined by Landlord, together with
an interest factor on the unamortized cost of such item equal to the lesser of
eight percent (8%) per annum or the maximum rate of interest permitted by
applicable law.

 

(f)                                    Tenant’s Share of Operating Expense increases
shall be payable by Tenant within ten (10) days after a reasonably
detailed statement of actual expenses is presented to Tenant by Landlord.  At Landlord’s option, however, Landlord may,
from time to time, estimate what Tenant’s Share of Operating Expense increases
will be, and the same shall be payable by Tenant monthly during each Comparison
Year of the Lease term, on the same day as the Base Rent is due hereunder.  In the event that Tenant pays Landlord’s
estimate of Tenant’s Share of Operating Expense increases, Landlord shall use
its best efforts to deliver to Tenant within one hundred one hundred fifty
(150) days after the expiration of each Comparison Year a reasonably detailed
statement (the “Statement”) showing Tenant’s Share of the actual Operating
Expense increases incurred during such year. 
The Statement shall be itemized on a line item basis showing the
applicable expense of the Base Year and the Comparison Year.  Landlord’s failure to deliver the Statement
to Tenant within said period shall not constitute Landlord’s waiver of its
right to collect said amounts or otherwise prejudice Landlord’s rights
hereunder.  If Tenant’s payments under
this section 4.2(f) during said Comparison Year exceed Tenant’s Share
as indicated on the Statement, Tenant shall be entitled to credit the amount of
such overpayment against Tenant’s Share of Operating Expense increases next
falling due.  If Tenant’s payments under
this section 4.2(f) during said Comparison Year were less than Tenant’s
Share as indicated on the Statement, Tenant shall pay to Landlord the amount of
the deficiency within thirty (30) days after delivery by Landlord to Tenant of
the Statement.  Landlord and Tenant shall
forthwith adjust between them by cash payment any balance determined to exist
with respect to that portion of the last Comparison Year for

 

6

 

which Tenant is responsible
for Operating Expense increases, notwithstanding that the Lease term may have
terminated before the end of such Comparison Year; and this provision shall
survive the expiration or earlier termination of the Lease.

 

(g)                                 The computation of Tenant’s Share of
Operating Expense increases is intended to provide a formula for the sharing of
costs by Landlord and Tenant and will not necessarily result in the
reimbursement to Landlord of the exact costs it has incurred.

 

(h)                                 Within one hundred twenty (120) days after
Tenant receives a Statement, Tenant shall have the right to inspect and
photocopy Landlord’s books and records with respect to the calendar year which
is the subject of the Statement (a “Tenant Statement Review”).  The Tenant Statement Review shall occur at
Landlord’s offices in Los Angeles or Orange County, California, at a mutually
convenient time during Landlord’s regular business hours.  In addition, if Tenant disputes the amount
set forth in the Statement, Tenant shall have the right, at Tenant’s sole
expense, not later than one hundred twenty (120) days following receipt of such
Statement, to cause Landlord’s books and records with respect to the calendar
year which is the subject of the Statement to be audited by a certified public
accountant mutually acceptable to Landlord and Tenant.  The audit shall take place at the offices of
Landlord where its books and records are located at a mutually convenient time
during Landlord’s regular business hours. 
Tenant’s Share of Operating Expenses shall be appropriately adjusted
based upon the results of such audit, and the results of such audit shall be
final and binding upon Landlord and Tenant. 
Tenant shall have no right to conduct an audit or to give Landlord
notice that it desires to conduct an audit at any time Tenant is in default
under the Lease.  The accountant
conducting the audit shall be compensated on an hourly basis and shall not be
compensated based upon a percentage of overcharges it discovers.  No subtenant shall have any right to conduct
an audit, and no assignee shall conduct an audit for any period during which
such assignee was not in possession of the Premises.  Tenant’s right to undertake an audit with
respect to any calendar year shall expire one hundred twenty (120) days after
Tenant’s receipt of the Statement for such calendar year, and such Statement
shall be final and binding upon Tenant and shall, as between the parties, be
conclusively deemed correct, at the end of such one hundred twenty (120) day
period, unless prior thereto Tenant shall have given Landlord written notice of
its intention to audit Operating Expenses for the calendar year which is the
subject of the Statement.  If Tenant
gives Landlord notice of its intention to audit Operating Expenses, it must
commence such audit within sixty (60) days after such notice is delivered to
Landlord, and the audit must be completed within one hundred twenty (120) days
after such notice is delivered to Landlord. 
If Tenant does not commence and complete the audit within such periods,
the Statement which Tenant elected to audit shall be deemed final and binding
upon Tenant and shall, as between the parties, be conclusively deemed
correct.  Tenant agrees to use
commercially reasonable efforts not to disclose the results of any Operating
Expense audit to any other person or entity other than Tenant’s attorneys,
accountants, auditors and lenders.

 

5.                                       SECURITY DEPOSIT. 
Tenant shall deliver to Landlord at the time it executes this Lease the
security deposit set forth in section 1.12 as security for Tenant’s
faithful performance of Tenant’s obligations hereunder.  If Tenant fails to pay Base Rent or other
charges due hereunder, or otherwise defaults with respect to any provision of
this Lease, Landlord may use all or any portion of said deposit for the payment
of any Base Rent or other charge due hereunder, to pay any other sum to which
Landlord may become obligated by reason of Tenant’s default, or to compensate
Landlord for any loss or damage which Landlord may suffer thereby.  If Landlord so uses or applies all or any
portion of said deposit, Tenant shall within ten (10) days after written
demand therefore deposit cash with Landlord in an amount sufficient to restore
said deposit to its full amount. 
Landlord shall not be required to keep said security deposit separate
from its general accounts.  If Tenant
performs all of Tenant’s obligations hereunder, said deposit, or so much
thereof as has not heretofore been applied by Landlord, shall be returned,
without payment of interest or other amount for its use, to Tenant (or, at
Landlord’s option, to the last assignee, if any, of Tenant’s interest
hereunder) at the expiration of the term hereof, and after Tenant has vacated
the Premises.  No trust relationship is
created herein between Landlord and Tenant with respect to said security
deposit.  Tenant acknowledges that the
security deposit is not an advance payment of any kind or a measure of Landlord’s
damages in the event of Tenant’s default. 
Tenant hereby waives the provisions of any law which is inconsistent
with this section 5.

 

7

 

6.                                       USE.

 

6.1                                 USE.  The
Premises shall be used and occupied only for the purpose set forth in section 1.7
and for no other purpose.  If section 1.7
gives Tenant the right to use the Premises for general office use, by way of
example and not limitation, general office use shall not include medical office
use or any similar use, laboratory use, classroom use, an executive suite or
similar use, any use not characterized by applicable zoning and land use
restrictions as general office use, any use which would require Landlord or
Tenant to obtain a conditional use permit or variance from any federal, state
or local authority, or any other use not compatible, in Landlord’s reasonable
judgment, with a first class office building. 
Notwithstanding any permitted use inserted in section 1.7, Tenant
shall not use the Premises for any purpose which would violate the Project’s
certificate of occupancy, any conditional use permit or variance applicable to
the Project or violate any covenants, conditions or other restrictions
applicable to the Project.  No exclusive
use has been granted to Tenant hereunder.

 

6.2                                 COMPLIANCE WITH LAW.

 

(a)                                  Landlord warrants to Tenant that, to the best
of Landlord’s knowledge, the Premises and the Building, in the state existing
on the date this Lease is executed by Landlord and Tenant, but without regard
to alterations or improvements to be made by Tenant or the use for which Tenant
will occupy the Premises, does not violate any covenants or restrictions of
record, or any applicable building code, regulation or ordinance in effect on
such date.

 

(b)                                 Tenant shall, at Tenant’s sole expense,
promptly comply with all applicable laws, ordinances, rules, regulations,
orders, certificates of occupancy, conditional use or other permits, variances,
covenants and restrictions of record, the recommendations of Landlord’s
engineers or other consultants, and requirements of any fire insurance
underwriters, rating bureaus or government agencies, now in effect or which may
hereafter come into effect, whether or not they reflect a change in policy from
that now existing, during the term or any part of the term hereof, relating in
any manner to the Premises or the occupation and use by Tenant of the
Premises.  Tenant shall, at Tenant’s sole
expense, comply with all requirements of the Americans With Disabilities Act
that relate to the Premises, and all federal, state and local laws and
regulations governing occupational safety and health.  Tenant shall conduct its business and use the
Premises in a lawful manner and shall not use or permit the use of the Premises
or the Common Areas in any manner that will tend to create waste or a nuisance
or shall tend to disturb other occupants of the Project.  Tenant shall obtain, at its sole expense, any
permit or other governmental authorization required to operate its business
from the Premises.  Landlord shall not be
liable for the failure of any other tenant or person to abide by the
requirements of this section or to otherwise comply with applicable laws
and regulations, and Tenant shall not be excused from the performance of its
obligations under this Lease due to such a failure.  Tenant acknowledges that the leases of other
tenants may not obligate them to comply with some or all of the requirements of
this section.  However, if the lease of
another tenant does obligate the tenant to comply with a requirement of this
section, and the tenant’s failure to comply with such requirement is having a
material adverse effect on Tenant’s use of the Premises, Landlord shall
cooperate with Tenant in attempting to cause the tenant to comply with the
requirement, provided, however, Landlord shall have no obligation to bring a
legal action against the non-complying tenant.

 

6.3                                 CONDITION OF PREMISES. 
Except as otherwise provided in Section 6.2(a) above or
elsewhere in this Lease, Tenant hereby accepts the Premises and the Project in
their condition existing as of the date this Lease is executed by Landlord and
Tenant, subject to all applicable federal, state and local laws, ordinances,
regulations and permits governing the use of the Premises, the Project’s
certificate of occupancy, any applicable conditional use permits or variances,
and any easements, covenants or restrictions affecting the use of the Premises
or the Project.  Tenant acknowledges that
it has satisfied itself by its own independent investigation that the Premises
and the Project are suitable for its intended use, and that neither Landlord
nor Landlord’s agents has made any representation or warranty as to the present
or future suitability of the Premises, or the Project for the conduct of Tenant’s
business.

 

7.                                       MAINTENANCE, REPAIRS AND
ALTERATIONS.

 

7.1                                 LANDLORD’S OBLIGATIONS.  Landlord
shall keep the Project (excluding elements of the Premises that are the
responsibility of Tenant to maintain or repair and space leased to other
occupants of the Project) in good condition and repair.  If plumbing pipes, electrical wiring, HVAC
ducts or vents within the Premises are in need of repair, Tenant shall
immediately notify Landlord, and Landlord shall cause the repairs to be

 

8

 

completed within a
reasonable time, and if the repair is necessitated by Tenant’s negligence or
misuse, Tenant shall immediately pay the entire cost of the repairs to
Landlord.  Except as provided in section 9.3,
there shall be no abatement of rent or liability to Tenant on account of any
injury or interference with Tenant’s business with respect to any improvements,
alterations or repairs made by Landlord to the Project or any part
thereof.  Tenant expressly waives the
benefits of any statute now or hereafter in effect which would otherwise afford
Tenant the right to make repairs at Landlord’s expense or to terminate this
Lease because of Landlord’s failure to keep the Project in good order,
condition and repair.

 

7.2                                 TENANT’S OBLIGATIONS.

 

(a)                                  Subject to the requirements of section 7.3
and Landlord’s obligations under section 7.1, Tenant shall be responsible
for keeping the Premises in good condition and repair, ordinary wear and tear
excepted, at Tenant’s sole expense.  By
way of example, and not limitation, Tenant shall be responsible, at Tenant’s
sole expense, for repairing and/or replacing, carpet, marble, tile or other
flooring, paint, wall coverings, corridor and interior doors and door hardware,
telephone and computer equipment, interior glass, window treatments, ceiling
tiles, shelving, cabinets, millwork and other tenant improvements.  In addition, Tenant shall be responsible for
the installation, maintenance and repair of all telephone, computer and related
cabling from the telephone terminal room on the floor on which the Premises is
located to and throughout the Premises, and Tenant shall be responsible for any
loss, cost, damage, liability and expense (including attorneys’ fees) arising
out of or related to the installation, maintenance, repair and replacement of
such cabling.  If Tenant fails to keep
the portions of the Premises for which it is responsible in good condition and
repair, Landlord may, but shall not be obligated to, make any necessary
repairs.  If Landlord makes such repairs,
Landlord may bill Tenant for the cost of the repairs as additional rent, and
said additional rent shall be payable by Tenant within ten (10) business
days.

 

(b)                                 On the last day of the term hereof, or on any
sooner termination, Tenant shall surrender the Premises to Landlord in the same
condition as received, ordinary wear and tear and casualty damage excepted,
clean and free of debris and Tenant’s personal property.  Tenant shall repair any damage to the
Premises occasioned by the installation or removal of Tenant’s trade fixtures,
furnishings and equipment.  Tenant shall
leave the electrical distribution systems, plumbing systems, lighting fixtures,
HVAC ducts and vents, window treatments, wall coverings, carpets and other
floor coverings, doors and door hardware, millwork, ceilings, partitions and
other tenant improvements at the Premises and in good condition, ordinary wear
and tear excepted.  Notwithstanding
anything to the contrary contained herein, Tenant shall not be obligated to
patch any nail or picture hook holes or to repaint the Premises.

 

7.3                                 ALTERATIONS AND ADDITIONS.

 

(a)                                  Tenant shall have the right, without Landlord’s
consent but upon ten (10) days prior written notice to Landlord, to make
strictly cosmetic, non-structural alterations (“Cosmetic Alterations”) to the
inside of the Premises (e.g., paint and carpet, wallcoverings, communication
systems, telephone and computer system wiring) that do not (i) involve the
expenditure of more than $15,000 in the aggregate in any calendar year; (ii) affect
the exterior appearance of the Building, (iii) affect the Building’s electrical,
plumbing, HVAC, life, fire, safety or security systems (iv) affect the
structural elements of the Building, (v) affect the Common Areas or
parking areas, or (vi) adversely affect any other tenant of the
Project.  Except with respect to Cosmetic
Alterations, Tenant shall not, without Landlord’s prior written consent, which
may be given or withheld in Landlord’s sole discretion, make any alterations,
improvements, additions, utility installations or repairs (hereinafter
collectively referred to as “Non- Permitted Alterations”) in, on or about the
Premises or the Project including, but not limited to, the installation or
alteration of security or fire protection systems, communication systems,
millwork, shelving, file retrieval or storage systems, window and wall
coverings, electrical distribution systems, lighting fixtures, HVAC and
plumbing.  References in this Lease to “Alterations”
shall mean both Permitted Alterations and Non-Permitted Alterations.  At the expiration of the term, Landlord may
require the removal of any Alterations installed by Tenant and the restoration
of the Premises and the Project to their prior condition, at Tenant’s expense
if, at the time of Landlord’s consent, Landlord did not agree in writing that
Tenant would not be obligated to remove the Alterations.  If a work letter agreement is entered into by
Landlord and Tenant, Tenant shall not be obligated to remove the tenant
improvements constructed in accordance with the work letter agreement.  If, as a result of any Alteration made by
Tenant, Landlord is obligated to comply with the Americans With Disabilities
Act or any other law or regulation and such compliance requires Landlord to
make any improvement or Alteration to any portion of the Project, as a

 

9

 

condition to Landlord’s
consent, Landlord shall have the right to require Tenant to pay to Landlord
prior to the construction of any Alteration by Tenant, the entire cost of any
improvement or alteration Landlord is obligated to complete by such law or
regulation.  Should Landlord permit
Tenant to make its own Alterations, Tenant shall use only such contractor as
has been expressly approved by Landlord, and if the cost of the Alteration will
exceed $100,000 Landlord may require Tenant to provide to Landlord, at Tenant’s
sole cost and expense, a lien and completion bond in an amount equal to one and
one-half times the estimated cost of such Alterations, to insure Landlord
against any liability for mechanic’s and materialmen’s liens and to insure
completion of the work.  In addition,
Tenant shall pay to Landlord a fee equal to the lesser of (i) the actual
amount Landlord pays to its property manager to supervise such Alterations, or (ii) three
percent (3.0%) of the cost of the Alterations to compensate Landlord for the
overhead and other costs it pays its property manager to monitor the
construction of the Alterations (the “Fee”) In addition to the Fee, Tenant
shall reimburse Landlord for any other reasonable out of pocket costs Landlord
pays to independent third parties (other than Landlord’s manager) in reviewing
the plans for the Alterations and, if reasonably necessary, in monitoring the
construction of the Alterations (e.g., the cost of engineers etc.)
(collectively, “Consultant’s Fees”); provided, however, in no event shall the
total amount of the Fee plus the Consultant’s Fees exceed three percent (3%) of
the total cost of the Alterations. 
Should Tenant make any Alterations without the prior approval of
Landlord, or use a contractor not expressly approved by Landlord, Landlord may,
at any time during the term of this Lease, require that Tenant remove all or
part of the Alterations and return the Premises to the condition it was in
prior to the making of the Alternations. 
In the event Tenant makes any Alterations, Tenant agrees to obtain or
cause its contractor to obtain, prior to the commencement of any work, “builders
all risk” insurance in an amount approved by Landlord and workers compensation
insurance.

 

(b)                                 Any Alterations in or about the Premises that
Tenant shall desire to make shall be presented to Landlord in written form,
with plans and specifications which are sufficiently detailed to obtain a
building permit.  If Landlord consents to
an Alteration, the consent shall be deemed conditioned upon Tenant acquiring a
building permit from the applicable governmental agencies, furnishing a copy
thereof to Landlord prior to the commencement of the work, and compliance by
Tenant with all conditions of said permit in a prompt and expeditious
manner.  Tenant shall provide Landlord
with as-built plans and specifications for any Alterations made to the
Premises.

 

(c)                                  Tenant shall pay, when due, all claims for
labor or materials furnished or alleged to have been furnished to or for Tenant
at or for use in the Premises, which claims are or may be secured by any
mechanic’s or materialmen’s lien against the Premises or the Project, or any
interest therein.  If Tenant shall, in
good faith, contest the validity of any such lien, Tenant shall furnish to
Landlord a surety bond satisfactory to Landlord in an amount equal to not less
than one and one half times the amount of such contested lien claim
indemnifying Landlord against liability arising out of such lien or claim.  Such bond shall be sufficient in form and
amount to free the Project from the effect of such lien.  In addition, Landlord may require Tenant to
pay Landlord’s reasonable attorneys’ fees and costs in participating in such
action.

 

(d)                                 Tenant shall give Landlord not less than ten (10) days’
advance written notice prior to the commencement of any work in the Premises by
Tenant, and Landlord shall have the right to post notices of non-responsibility
in or on the Premises or the Project.

 

(e)                                  All Alterations (whether or not such Alterations
constitute trade fixtures of Tenant) which may be made to the Premises by
Tenant shall be paid for by Tenant, at Tenant’s sole expense, and shall be made
and done in a good and workmanlike manner and with materials satisfactory to
Landlord, and such Alteration shall be the property of Landlord and remain upon
and be surrendered with the Premises at the expiration of the Lease term,
unless Landlord requires their removal pursuant to section 7.3(a).  Provided Tenant is not in default, Tenant’s
personal property and equipment, other than that which is affixed to the
Premises so that it cannot be removed without material damage to the Premises
or the Project, shall remain the property of Tenant and may be removed by
Tenant subject to the provisions of section 7.2(b).

 

7.4                                 FAILURE OF TENANT TO REMOVE
PROPERTY.  If this Lease is terminated due to the
expiration of its term or otherwise, and Tenant fails to remove its property as
required by section 7.2(b), in addition to any other remedies available to
Landlord under this Lease, and subject to any other right or remedy Landlord
may have under applicable law, Landlord may remove any property of Tenant from
the Premises and store the same elsewhere at the expense and risk of Tenant.

 

10

 

8.                                       INSURANCE.

 

8.1                                 INSURANCE-TENANT.

 

(a)                                  Tenant shall obtain and keep in force during
the term of this Lease a commercial general liability policy of insurance with
coverages acceptable to Landlord, in Landlord’s sole discretion, which, by way
of example and not limitation, protects Tenant and Landlord (as an additional
insured) against claims for bodily injury, personal injury and property damage
based upon, involving or arising out of the ownership, use, occupancy or maintenance
of the Premises and all areas appurtenant thereto.  Such insurance shall be on an occurrence
basis providing single limit coverage in an amount not less than $2,000,000 per
occurrence with an “Additional Insured-Managers and Landlords of Premises Endorsement”
and contain the “Amendment of the Pollution Exclusion” for damage caused by
heat, smoke or fumes from a hostile fire. 
The policy shall not contain any intra-insured exclusions as between
insured persons or organizations, but shall include coverage for liability
assumed under this Lease as an “insured contract”.

 

(b)                                 Tenant shall obtain and keep in force during
the term of this Lease “all risk” extended coverage property insurance with
coverages acceptable to Landlord, in Landlord’s sole discretion.  Said insurance shall be written on a one
hundred percent (100%) replacement cost basis on Tenant’s personal property,
all tenant improvements installed at the Premises by or for Tenant, Tenant’s
trade fixtures and other property.  By
way of example, and not limitation, such policies shall provide protection
against any peril included within the classification “fire and extended
coverage,” against vandalism and malicious mischief, theft and sprinkler
leakage.  If this Lease is terminated as
the result of a casualty in accordance with section 9, the proceeds of
said insurance attributable to the replacement of all tenant improvements at
the Premises shall be paid to Landlord. 
Landlord shall select the contractor to repair and/or replace the tenant
improvements, and Landlord shall cause the tenant improvements to be repaired
and/or replaced to the extent insurance proceeds are available, and if and to
the extent the tenant improvements are so repaired and/or replaced by Landlord,
all insurance proceeds Tenant is entitled to receive to repair the tenant
improvements shall be paid by the insurance company directly to Landlord.

 

(c)                                  Tenant shall, at all times during the term
hereof, maintain in effect workers’ compensation insurance as required by
applicable law and business interruption and extra expense insurance
satisfactory to Landlord.

 

8.2                                 INSURANCE-LANDLORD.

 

(a)                                  Landlord shall obtain and keep in force a
policy of general liability insurance with coverage against such risks and in
such amounts as Landlord deems advisable insuring Landlord against liability
arising out of the ownership, operation and management of the Project.

 

(b)                                 Landlord shall also obtain and keep in force
during the term of this Lease a policy or policies of insurance covering loss
or damage to the Project in the amount of not less than eighty percent (80%) of
the full replacement cost thereof, as determined by Landlord from time to
time.  The terms and conditions of said
policies and the perils and risks covered thereby shall be determined by
Landlord, from time to time, in Landlord’s sole discretion.  In addition, Landlord shall obtain and keep
in force, during the term of this Lease, a policy of rental interruption
insurance, with loss payable to Landlord, which insurance shall also cover all
Operating Expenses.  At Landlord’s
option, Landlord may obtain insurance coverages and/or bonds related to the
operation of the parking areas.  At
Landlord’s option, Landlord may obtain coverage for flood and earthquake
damages.  In addition, Landlord shall
have the right to obtain such additional insurance as is customarily carried by
owners or operators of other comparable office buildings in the geographical
area of the Project.  Tenant will not be
named as an additional insured in any insurance policies carried by Landlord
and shall have no right to any proceeds therefrom.  The policies purchased by Landlord shall
contain such deductibles as Landlord may determine, provided that the amount of
any deductible loss to be included in Operating Expenses shall be subject to
the limits specified in section 4.2(c)(iii).  In addition to amounts payable by Tenant in
accordance with section 4.2, Tenant shall pay any increase in the property
insurance premiums for the Project over what was payable immediately prior to
the increase to the extent the increase is specified by Landlord’s insurance
carrier as being caused by the nature of Tenant’s occupancy or any act or
omission of Tenant.

 

11

 

8.3                                 INSURANCE POLICIES. 
Tenant shall deliver to Landlord certificates of the insurance within
fifteen (15) days prior to the Commencement Date of this Lease, and Landlord
shall have the right to approve the terms and conditions of said certificates.  Tenant’s insurance policies shall not be
cancelable except after thirty (30) days prior written notice to Landlord.  Tenant shall, at least thirty (30) days prior
to the expiration of such policies, furnish Landlord with renewals thereof.  Tenant’s insurance policies shall be issued
by insurance companies authorized to do business in the state in which the
Project is located, and said companies shall maintain during the policy term a “General
Policyholder’s Rating” of at least A and a financial rating of at least “Class X”
(or such other rating as may be required by any lender having a lien on the
Project) as set forth in the most recent edition of “Best Insurance Reports.”
All insurance obtained by Tenant shall be primary to and not contributory with
any similar insurance carried by Landlord, whose insurance shall be considered
excess insurance only.  Landlord, and at
Landlord’s option, the holder of any mortgage or deed of trust encumbering the
Project and any person or entity managing the Project on behalf of Landlord,
shall be named as an additional insured on Tenant’s commercial general
liability policy.  Tenant’s insurance
policies shall not include deductibles in excess of Fifty Thousand Dollars
($50,000).

 

8.4                                 WAIVER OF SUBROGATION. 
Landlord waives any and all rights of recovery against Tenant or Tenant’s
parties for or arising out of damage to, or destruction of, the Project to the
extent that Landlord’s insurance policies then required to be in force insure
against such damage or destruction. 
Landlord shall cause the insurance policies it obtains in accordance
with this section 8 relating to property damage to provide that the
insurance company waives all right of recovery by subrogation against Tenant in
connection with any liability or damage covered by Landlord’s insurance policies.  Tenant waives any and all rights of recovery
against Landlord, Landlord’s employees, agents and contractors for or arising
out of damage to, or destruction of, the Project to the extent that Tenant’s
insurance policies then required to be in force insure against such damage or
destruction.  Tenant shall cause the
insurance policies it obtains in accordance with this section 8 relating
to property damage to provide that the insurance company waives all right of
recovery by subrogation against Landlord in connection with any liability or
damage covered by Tenant’s insurance policies.

 

8.5                                 COVERAGE. 
Landlord makes no representation to Tenant that the limits or forms of
coverage specified above or approved by Landlord are adequate to insure Tenant’s
property or Tenant’s obligations under this Lease, and the limits of any
insurance carried by Tenant shall not limit Tenant’s obligations or liability
under any indemnity provision included in this Lease or under any other
provision of this Lease.

 

9.                                       DAMAGE OR DESTRUCTION.

 

9.1                                 EFFECT OF DAMAGE OR
DESTRUCTION.  If all or part of the Project is damaged by
fire, earthquake, flood, explosion, the elements, riot, the release or
existence of Hazardous Substances (as defined below) or by any other cause
whatsoever (hereinafter collectively referred to as “damages”), but the damages
are not material (as defined in section 9.2 below), Landlord shall repair
the damages to the Project as soon as is reasonably possible, and this Lease
shall remain in full force and effect. 
If all or part of the Project is destroyed or materially damaged (as
defined in section 9.2 below), Landlord shall have the right, in its sole
and complete discretion, to repair or to rebuild the Project or to terminate
this Lease.  Landlord shall within ninety
(90) days after the discovery of such material damage or destruction notify
Tenant in writing of Landlord’s intention to repair or to rebuild or to
terminate this Lease.  Tenant shall in no
event be entitled to compensation or damages on account of annoyance or
inconvenience in making any repairs, or on account of construction, or on
account of Landlord’s election to terminate this Lease.  Notwithstanding the foregoing, if Landlord
shall elect to rebuild or repair the Project after material damage or
destruction, but in good faith determines that the Premises cannot be
substantially repaired within two hundred forty (240) days after the date of
the discovery of the material damage or destruction, without payment of
overtime or other premiums, and the damage to the Project will render so much
of the Premises unusable that Tenant will be unable to use the Premises during
said two hundred forty (240) day period, Landlord shall notify Tenant thereof
in writing at the time of Landlord’s election to rebuild or repair, and Tenant
shall thereafter have a period of fifteen (15) days within which Tenant may
elect to terminate this Lease, upon thirty (30) days’ advance written notice to
Landlord, and the termination shall be effective as of the last date that
Tenant used the Premises.  Tenant’s
termination right described in the preceding sentence shall not apply if the
damage was caused by the negligent or intentional acts of Tenant or its
employees, agents, contractors or invitees. 
Failure of Tenant to exercise said election within said fifteen (15) day
period shall constitute Tenant’s agreement to accept delivery of the Premises
under this Lease whenever tendered by Landlord, provided Landlord thereafter
pursues reconstruction or

 

12

 

restoration diligently to
completion, subject to delays caused by Force Majeure Events.  If Landlord is unable to repair the damage to
the Premises or the Project during such two hundred forty (240) day period due
to Force Majeure Events, the two hundred forty (240) day period shall be
extended by the period of delay caused by the Force Majeure Events.  Subject to section 9.3 below, if
Landlord or Tenant terminates this Lease in accordance with this section 9.1,
Tenant shall continue to pay all Base Rent, Operating Expense increases and
other amounts due hereunder which arise prior to the date of termination.

 

9.2                                 DEFINITION OF MATERIAL
DAMAGE.  Damage to the Project shall be deemed
material if, in Landlord’s reasonable judgment, the uninsured cost of repairing
the damage will exceed Two Hundred Fifty Thousand Dollars ($250,000).  If insurance proceeds are available to
Landlord in an amount which is sufficient to pay the entire cost of repairing
all of the damage to the Project, the damage shall be deemed material if the
cost of repairing the damage exceeds Five Hundred Thousand Dollars
($500,000).  Damage to the Project shall
also be deemed material if (a) the Project cannot be rebuilt or repaired
to substantially the same condition it was in prior to the damage due to laws
or regulations in effect at the time the repairs will be made, (b) the
holder of any mortgage or deed of trust encumbering the Project requires that
insurance proceeds available to repair the damage in excess of Two Hundred
Fifty Thousand Dollars ($250,000) be applied to the repayment of the
indebtedness secured by the mortgage or the deed of trust, or (c) the
damage occurs during the last twelve (12) months of the Lease term and the cost
of repairing the damage will exceed Fifty Thousand Dollars ($50,000).

 

9.3                                 ABATEMENT OF RENT.  If
as a result of damage to the Project all or part of the Premises is unusable or
inaccessible to Tenant in the ordinary conduct of its business until the damage
is repaired, Tenant’s Base Rent and Tenant’s Share of Operating Expense
increases shall be abated from the date of the damage until the repairs are
completed and the Premises are restored to Tenant for occupancy in proportion
to the amount of the Premises which is unusable or inaccessible to Tenant in
the ordinary conduct of its business. 
Notwithstanding the foregoing, there shall be no abatement of Base Rent
or Tenant’s Share of Operating Expense increases by reason of any portion of
the Premises being unusable or inaccessible for a period equal to five (5) consecutive
business days or less.

 

9.4                                 Intentionally deleted.

 

9.5                                 TENANT’S PROPERTY.  As
more fully set forth in section 47, Landlord shall not be liable to Tenant
or its employees, agents, contractors, invitees or customers for loss or damage
to merchandise, tenant improvements, fixtures, automobiles, furniture,
equipment, computers, files or other property (hereinafter collectively “Tenant’s
property”) located at the Project. 
Tenant shall repair or replace all of Tenant’s property at Tenant’s sole
cost and expense.  Tenant acknowledges
that it is Tenant’s sole responsibility to obtain adequate insurance coverage
to compensate Tenant for damage to Tenant’s property.

 

9.6                                 WAIVER. 
Landlord and Tenant hereby waive the provisions of any present or future
statutes which relate to the termination of leases when leased property is
damaged or destroyed and agree that such event shall be governed by the terms
of this Lease.

 

10.                                 REAL AND PERSONAL PROPERTY
TAXES.

 

10.1                           PAYMENT OF TAXES. 
Tenant shall pay to Landlord during the term of this Lease, in addition
to Base Rent and Tenant’s Share of Operating Expense increases, Tenant’s Share
of the amount by which all “Real Property Taxes” (as defined in section 10.2
below) for each Comparison Year exceeds the amount of all Real Property Taxes
for the Base Year.  For purposes of
calculating Tenant’s Share of Real Property Taxes, and notwithstanding anything
to the contrary contained in section 1.13, Landlord shall allocate Real
Property Taxes by (a) multiplying the cost of Real Property Taxes assessed
against the Project by a fraction, the numerator of which is the number of
square feet of rentable space in the Premises and the denominator of which is
the number of rentable square feet in all Buildings or (b) multiplying the
cost of Real Property Taxes assessed against the Building by a fraction, the
numerator of which is the number of square feet of rentable space in the
Premises and the denominator of which is the number of rentable square feet in
the Building.  Tenant’s Share of Real
Property Tax increases shall be payable by Tenant at the same time, in the same
manner and under the same terms and conditions as Tenant pays Tenant’s Share of
Operating Expense increases as provided in section 4.2(f) of this
Lease.  Except as expressly provided in section 10.4
below, if the Real Property Taxes incurred during any Comparison Year are less
than the

 

13

 

Real Property Taxes incurred
during the Base Year, Tenant shall not be entitled to receive any credit,
offset, reduction or benefit as a result of said occurrence.

 

10.2                           DEFINITION OF “REAL
PROPERTY TAX”.  As used herein, the term “Real Property Taxes”
shall include any form of real estate tax or assessment, general, special,
ordinary or extraordinary, improvement bond or bonds imposed on the Project or
any portion thereof by any authority having the direct or indirect power to
tax, including any city, county or state, or any school, agricultural, sanitary,
fire, street, drainage or other improvement district thereof, as against any
legal or equitable interest of Landlord in the Project or in any portion
thereof, unless such tax is defined as an Operating Expense by section 4.3(c).  Real Property Taxes shall not include income,
inheritance and gift taxes.

 

10.3                           PERSONAL PROPERTY TAXES. 
Tenant shall pay prior to delinquency all taxes assessed against and
levied upon trade fixtures, furnishings, equipment and all other personal
property of Tenant contained in the Premises or related to Tenant’s use of the
Premises.  If any of Tenant’s personal
property shall be assessed with Landlord’s real or personal property, Tenant
shall pay to Landlord the taxes attributable to Tenant within ten (10) days
after receipt of a written statement from Landlord setting forth the taxes
applicable to Tenant’s property.

 

10.4                           REASSESSMENTS.  From
time to time Landlord may challenge the assessed value of the Project as
determined by applicable taxing authorities and/or Landlord may attempt to
cause the Real Property Taxes to be reduced on other grounds.  If Landlord is successful in causing the Real
Property Taxes to be reduced or in obtaining a refund, rebate, credit or
similar benefit (hereinafter collectively referred to as a “reduction”),
Landlord shall to the extent practicable, credit the reduction(s) to Real
Property Taxes for the calendar year to which a reduction applies and
recalculate the Real Property Taxes owed by Tenant for years after the year in
which the reduction applies based on the reduced Real Property Taxes (if a
reduction applies to Tenant’s Base Year, the Base Year Real Property Taxes
shall be reduced by the amount of the reduction and Tenant’s Share of Real
Property Tax increases shall be recalculated for all Comparison Years following
the year of the reduction based on the lower Base Year amount).  All costs incurred by Landlord in obtaining
the Real Property Tax reductions shall be considered an Operating Expense and Landlord
shall determine, in its sole discretion, to which years any reductions will be
applied.  In addition, all accounting and
related costs incurred by Landlord in calculating new Base Years for tenants
and in making all other adjustments shall be an Operating Expense.

 

11.                                 UTILITIES.

 

11.1                           SERVICES PROVIDED BY
LANDLORD.  Subject to all governmental rules,
regulations and guidelines applicable thereto, Landlord shall use its best
efforts to provide HVAC to the Premises for normal office use during the times
described in section 11.4, reasonable amounts of electricity for normal
office lighting and fractional horsepower office machines, water in the
Premises or in the Common Area for reasonable and normal drinking and lavatory
use, replacement light bulbs and/or fluorescent tubes and ballasts for standard
overhead fixtures, and building standard janitorial services.  Notwithstanding anything to the contrary
contained in this Lease, Landlord shall make available to the Premises for use
in convenience outlets and for lighting (including ceiling lighting) a total
amount of electrical current that is not less that 7 watts per usable square
foot within the Premises (“Minimum Electrical Capacity”).

 

11.2                           INTRABUILDING NETWORK
CABLING.  In addition to the items described in 11.1
above, Landlord shall also provide to Tenant, without separate charge, access
to a reasonable amount of INC.  For
purposes of this section 11.2, a reasonable amount of INC shall not exceed
two (2) cable pairs per one thousand (1,000) usable square feet of space
in the Premises.  If Tenant requires
additional INC capacity, the cost of providing, maintaining, repairing and
replacing such capacity shall be borne solely by Tenant.  Additional INC capacity may only be
installed, maintained, repaired and replaced by a contractor approved by
Landlord, in Landlord’s reasonable discretion. 
The Building’s minimum point of entry (“MPOE”) for telephone service,
the INC risers and the telephone terminal rooms located on each floor of the
Building may only be accessed with Landlord’s prior consent and by contractors
approved by Landlord, in Landlord’s reasonable discretion.  Tenant shall be responsible for any loss,
cost, damage, liability and expense (including attorneys’ fees) arising out of
or related to the installation, maintenance, repair and replacement of
additional INC capacity.

 

14

 

11.3                           OCCUPANT DENSITY. 
Tenant shall maintain a ratio of not more than one Occupant (as defined
below) for each two hundred (200) square feet of rentable area in the
Premises.  If Landlord has a reasonable
basis to believe that Tenant is exceeding the Occupant Density, upon request by
Landlord, Tenant shall maintain on a daily basis an accurate record of the
number of employees that use the Premises (collectively “Occupants”).  Landlord shall have the right to audit Tenant’s
Occupant record and, at Landlord’s option, Landlord shall have the right to
periodically visit the Premises without advance notice to Tenant in order to
track the number of Occupants arriving at the Premises.  For purposes of this section, “Occupants”
shall not include people not employed by Tenant that deliver or pick up mail or
other packages at the Premises, visitors, guests, employees of Landlord or
employees of Landlord’s agents or contractors. 
Tenant acknowledges that increased numbers of Occupants causes
additional wear and tear on the Premises and the Common Areas, additional use
of electricity, water and other utilities, and additional demand for other
Building services.  Tenant’s failure to
comply with the requirements of this section shall constitute a default
under section 13.3 and Landlord shall have the right, in addition to any
other remedies it may have at law or equity, to specifically enforce Tenant’s
obligations under this section.

 

11.4                           HOURS OF SERVICE. 
Building services and utilities shall be provided Monday through Friday
from 8:00 a.m. to 6:00 p.m. and Saturdays from 8:00 a.m. to 1:00 p.m.  Janitorial services shall be provided Monday
through Friday.  HVAC and other Building
services shall not be provided at other times or on nationally recognized
holidays.  Electricity and utility
services shall be provided at all times on all days.  Tenant acknowledges that there will be no air
circulation or temperature control within the Premises when the HVAC is not
operating and, consequently, during such times the Premises may not be suitable
for human occupation or for the operation of computers and other heat sensitive
equipment.  Nationally recognized
holidays shall include, but shall not necessarily be limited to, New Years Day,
Martin Luther King Jr. Day, Presidents’ Day, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day and Christmas Day. 
Landlord shall use its best efforts to provide HVAC to Tenant at times
other than those set forth above subject to (a) the payment by Tenant of
Landlord’s standard charge, as determined by Landlord from time to time, in
Landlord’s sole discretion, for after hours HVAC and (b) Tenant’s
providing to Landlord at least one (1) business day’s advance written
notice of Tenant’s need for after hours HVAC. 
During the initial five (5) year term of this Lease, Tenant shall
pay Fifty Five Dollars ($55.00) per hour per zone for after hours HVAC.  After hours HVAC may be purchased for not
less than two (2) consecutive hours per zone.  After the initial five (5) year term of
this Lease, Tenant shall pay Landlord’s standard charge for after hours
HVAC.  Tenant shall pay all after hours
HVAC charges to Landlord within ten (10) days after Landlord bills Tenant
for said charges.

 

11.5                           EXCESS USAGE BY TENANT. 
Notwithstanding the use set forth in section 1.7, Tenant shall not
use Building utilities or services in excess of those used by the average
office building tenant using its premises for ordinary office use.  Tenant shall not install at the Premises
office machines, lighting fixtures or other equipment which will generate above
average heat, noise or vibration at the Premises or which will adversely effect
the temperature maintained by the HVAC system. 
If Tenant does use Building utilities or services in excess of those
used by the average office building tenant, Landlord shall have the right to (a) at
Tenant’s expense, install separate metering devices at the Premises, and to
charge Tenant for its usage and (b) require Tenant to pay to Landlord all
costs, expenses and damages incurred by Landlord as a result of such usage;
provided, however, in no event shall Tenant’s use of electricity in an amount
that is equal to or less than the Minimum Electrical Capacity constitute the
use of electricity by Tenant in excess of that used by an average office
building tenant.

 

11.6                           INTERRUPTIONS. 
Tenant agrees that Landlord shall not be liable to Tenant for its
failure to furnish gas, electricity, telephone service, water, HVAC or any
other utility services or building services when such failure is occasioned, in
whole or in part, by repairs, replacements, or improvements, by any strike,
lockout or other labor trouble, by inability to secure electricity, gas, water,
telephone service or other utility at the Project, by any accident, casualty or
event arising from any cause whatsoever. 
Furthermore, Landlord shall not be liable under any circumstances for
loss of property or for injury to, or interference with, Tenant’s business,
including, without limitation, loss of profits, however occurring, through or
in connection with or incidental to a failure to furnish any such services or
utilities.  Landlord may comply with
voluntary controls or guidelines promulgated by any governmental entity
relating to the use or conservation of energy, water, gas, light or electricity
or the reduction of automobile or other emissions without creating any
liability of Landlord to Tenant under this Lease.

 

11.7                           ABATEMENT OF RENT. 
Subject to Tenant’s right to receive an earlier rent abatement pursuant
to section 9.3, in the event that Tenant is prevented from using, and does
not use, the Premises or any portion

 

15

 

thereof, for five (5) consecutive
business days or seven (7) days in any twelve (12) month period (the “Eligibility
Period”) as a result of any damage or destruction to the Premises or any
repair, maintenance or alteration performed by Landlord to the Premises after
the Commencement Date and required by the Lease, which substantially interferes
with Tenant’s use of the Premises, or any failure to provide services or access
to the Premises due to Landlord’s negligence or default, then Tenant’s rent
shall be abated or reduced, as the case may be, after expiration of the
Eligibility Period for such time that Tenant continues to be so prevented from
using, and does not use, the Premises or a portion thereof, in the proportion
that the rentable area of the portion of the Premises that Tenant is prevented
from using, and does not use, bears to the total rentable area of the
Premises.  However, in the event that
Tenant is prevented from conducting, and does not conduct, its business in any
portion of the Premises for a period of time in excess of the Eligibility
Period, and the remaining portion of the Premises is not sufficient to allow
Tenant to effectively conduct its business therein, and if Tenant does not
conduct its business from such remaining portion, then for such time after expiration
of the Eligibility Period during which Tenant is so prevented from effectively
conducting its business therein, the rent for the entire Premises shall be
abated; provided, however, if Tenant reoccupies and conducts its business from
any portion of the Premises during such period, the rent allocable to such
reoccupied portion, based on the proportion that the rentable area of such
reoccupied portion of the Premises bears to the total rentable area of the
Premises, shall be payable by Tenant from the date such business operations
commence.  Notwithstanding the foregoing,
if Landlord is entitled to receive lost rents from its insurance carrier, and
Landlord’s right to receive such rents begins prior to the end of the
Eligibility Period, and Tenant is otherwise entitled to receive a rent
abatement pursuant to this section, Tenant’s rent abatement shall begin as of
the first day Landlord is entitled to receive lost rents from its insurance
carrier.

 

12.                                 ASSIGNMENT AND SUBLETTING.

 

12.1                           LANDLORD’S CONSENT REQUIRED. 
Tenant shall not voluntarily assign, transfer, hypothecate, mortgage,
sublet, or otherwise transfer or encumber all or any part of Tenant’s interest
in this Lease or in the Premises (hereinafter collectively a “Transfer”),
without Landlord’s prior written consent, which shall not be unreasonably
withheld.  Landlord shall respond to
Tenant’s written request for consent hereunder within thirty (30) days after
Landlord’s receipt of the written request from Tenant.  Any attempted Transfer without such consent
shall be void and shall constitute a material default and breach of this
Lease.  Tenant’s written request for
Landlord’s consent shall include, and Landlord’s thirty (30) day response
period referred to above shall not commence, unless and until Landlord has
received from Tenant, all of the following information: (a) financial
statements for the proposed assignee or subtenant for the past three (3) years
prepared in accordance with generally accepted accounting principles, (b) federal
tax returns for the proposed assignee or subtenant for the past three (3) years,
(c) a TRW credit report or similar report on the proposed assignee or
subtenant, (d) a detailed description of the business the assignee or
subtenant intends to operate at the Premises, (d) the proposed effective
date of the assignment or sublease, (f) a copy of the proposed sublease or
assignment agreement which includes all of the terms and conditions of the
proposed assignment or sublease, (g) a detailed description of any
ownership or commercial relationship between Tenant and the proposed assignee
or subtenant and (h) a detailed description of any Alterations the
proposed assignee or subtenant desires to make to the Premises.  If the obligations of the proposed assignee
or subtenant will be guaranteed by any person or entity, Tenant’s written
request shall not be considered complete until the information described in
(a), (b) and (c) of the previous sentence has been provided with
respect to each proposed guarantor.  “Transfer”
shall also include the transfer (a) if Tenant is a corporation, and Tenant’s
stock is not publicly traded over a recognized securities exchange, of more
than fifty percent (50%) of the voting stock of such corporation during the
term of this Lease (whether or not in one or more transfers) or the
dissolution, merger or liquidation of the corporation, or (b) if Tenant is
a partnership or other entity, of more than fifty percent (50%) of the profit
and loss participation in such partnership or entity during the term of this
Lease (whether or not in one or more transfers) or the dissolution, merger or
liquidation of the partnership.  Tenant’s
sole remedy in the event that Landlord shall wrongfully withhold consent to or
disapprove any assignment or sublease shall be to obtain an order by a court of
competent jurisdiction that Landlord grant such consent; in no event shall
Landlord be liable for damages with respect to its granting or withholding
consent to any proposed assignment or sublease. 
If Landlord shall exercise any option to recapture the Premises, or
shall deny a request for consent to a proposed assignment or sublease, Tenant
shall indemnify, defend and hold Landlord harmless from and against any and all
losses, liabilities, damages, costs and claims that may be made against
Landlord by the proposed assignee or subtenant, or by any brokers or other
persons claiming a commission or similar compensation in connection with the
proposed assignment or sublease; provided, however, this indemnity shall not
apply to the gross negligence or willful misconduct of Landlord.

 

16

 

12.2                           LEVERAGED BUY-OUT.  The
involvement by Tenant or its assets in any transaction, or series of
transactions (by way of merger, sale, acquisition, financing, refinancing,
transfer, leveraged buy-out or otherwise) whether or not a formal assignment or
hypothecation of this Lease or Tenant’s assets occurs, which results or will
result in a reduction of the “Net Worth” of Tenant as hereinafter defined, by an
amount equal to or greater than twenty-five percent (25%) of such Net Worth of
Tenant as it is represented to Landlord at the time of the execution by
Landlord of this Lease shall be considered to be an assignment of this Lease by
Tenant to which Landlord may reasonably withhold its consent.  “Net Worth” of Tenant for purposes of this section 12.2
shall be the net worth of Tenant (excluding any guarantors) established under
generally accepted accounting principles consistently applied.

 

12.3                           STANDARD FOR APPROVAL. 
Landlord shall not unreasonably withhold its consent to a Transfer
provided that Tenant has complied with each and every requirement, term and
condition of this section 12. 
Tenant acknowledges and agrees that each requirement, term and condition
in this section 12 is a reasonable requirement, term or condition.  It shall be deemed reasonable for Landlord to
withhold its consent to a Transfer if any requirement, term or condition of
this section 12 is not complied with or: (a) the Transfer would cause
Landlord to be in violation of its obligations under another lease or agreement
to which Landlord is a party; (b) in Landlord’s reasonable judgment, a
proposed assignee has a smaller net worth than Tenant had on the date this
Lease was entered into with Tenant or is less able financially to pay the rents
due under this Lease as and when they are due and payable; (c) a proposed
assignee’s or subtenant’s business will impose a burden on the Project’s
parking facilities, elevators, Common Areas or utilities that is greater than
the burden imposed by Tenant, in Landlord’s reasonable judgment; (d) the
terms of a proposed assignment or subletting will allow the proposed assignee
or subtenant to exercise a right of renewal, right of expansion, right of first
offer, right of first refusal or similar right held by Tenant; (e) a
proposed assignee or subtenant refuses to enter into a written assignment
agreement or sublease, reasonably satisfactory to Landlord, which provides that
it will abide by and assume all of the terms and conditions of this Lease for
the term of any assignment or sublease and containing such other terms and
conditions as Landlord reasonably deems necessary; (f) the use of the
Premises by the proposed assignee or subtenant will not be identical to the use
permitted by this Lease; (g) any guarantor of this Lease refuses to
consent to the Transfer or to execute a written agreement reaffirming the
guaranty; (h) there is an uncured default by Tenant under section 13.1
at the time of the request; (i) if requested by Landlord, the assignee or
subtenant refuses to sign a commercially reasonable non-disturbance and
attornment agreement in favor of Landlord’s lender; (j) Landlord has sued or
been sued by the proposed assignee or subtenant or has otherwise been involved
in a legal dispute with the proposed assignee or subtenant; (k) the assignee or
subtenant is involved in a business which is not in keeping with the then
current standards of the Project; (I) the proposed assignee or subtenant is an
existing tenant of the Project or is a person or entity then negotiating with
Landlord for the lease of space in the Project; (m) the assignment or sublease
will result in there being more than four (4) subtenants of the Premises
(e.g., the assignee or subtenant intends to use the Premises as an executive
suite); (n) the assignee or subtenant is a person or entity to whom Landlord
has agreed not to lease space in the Building pursuant to a lease with another
tenant (lists of such persons or entities are available upon request) or (o)
the assignee or subtenant is a governmental or quasi-governmental entity or an
agency, department or instrumentality of a governmental or quasi-governmental
agency.

 

12.4                           ADDITIONAL TERMS AND CONDITIONS.  The following terms and conditions shall be
applicable to any Transfer:

 

(a)                                  Regardless of Landlord’s consent, no Transfer
shall release Tenant from Tenant’s obligations hereunder or alter the primary
liability of Tenant to pay the rent and other sums due Landlord hereunder and
to perform all other obligations to be performed by Tenant hereunder or release
any guarantor from its obligations under its guaranty.

 

(b)                                 Landlord may accept rent from any person
other than Tenant pending approval or disapproval of an assignment or
subletting.

 

(c)                                  Neither a delay in the approval or
disapproval of a Transfer, nor the acceptance of rent, shall constitute a
waiver or estoppel of Landlord’s right to exercise its rights and remedies for
the breach of any of the terms or conditions of this section l2.

 

(d)                                 The consent by Landlord to any Transfer shall
not constitute a consent to any subsequent Transfer by Tenant or to any
subsequent or successive Transfer by an assignee or subtenant.  However, Landlord

 

17

 

may consent to subsequent
Transfers or any amendments or modifications thereto without notifying Tenant
or anyone else liable on the Lease and without obtaining their consent, and
such action shall not relieve such persons from liability under this Lease
provided that Tenant shall not be liable under any amendment or modification of
the Lease that would increase the rent, extend the term or otherwise increase
Tenant’s obligations unless Tenant has agreed to such amendment or
modification.

 

(e)                                  In the event of any default under this Lease,
Landlord may proceed directly against Tenant, any guarantors or anyone else
responsible for the performance of this Lease, including any subtenant or
assignee, without first exhausting Landlord’s remedies against any other person
or entity responsible therefore to Landlord, or any security held by Landlord.

 

(f)                                    Landlord’s written consent to any Transfer by
Tenant shall not constitute an acknowledgment that no default then exists under
this Lease nor shall such consent be deemed a waiver of any then existing
default.

 

(g)                                 The discovery of the fact that any financial
statement relied upon by Landlord in giving its consent to an assignment or
subletting was materially false shall, at Landlord’s election, render Landlord’s
consent null and void.

 

(h)                                 Landlord shall not be liable under this Lease
or under any sublease to any subtenant.

 

(i)                                     No sublease may be modified or amended to
expand the subleased portion of the Premises without Landlord’s prior written
consent.

 

(j)                                     The occurrence of a transaction described in section 12.2
shall give Landlord the right (but not the obligation) to require that Tenant
immediately provide Landlord with an additional security deposit equal to
twelve (12) times the monthly Base Rent payable under the Lease, and Landlord
may make its receipt of such amount a condition to Landlord’s consent to such
transaction.

 

(k)                                  Any assignee of this Lease shall, by reason
of accepting such assignment be deemed, for the benefit of Landlord, to have
assumed and agreed to conform and comply with each and every term, covenant,
condition and obligation herein to be observed or performed by Tenant during
the term of said assignment, other than such obligations as are contrary or
inconsistent with provisions of an assignment or sublease to which Landlord has
specifically consented in writing.  Any
sublease shall be subject to the terms and conditions of this Lease.

 

12.5                           ADDITIONAL TERMS AND
CONDITIONS APPLICABLE TO SUBLETTING.  The following terms and
conditions shall apply to any subletting by Tenant of all or any part of the
Premises and shall be deemed included in all subleases under this Lease whether
or not expressly incorporated therein:

 

(a)                                  Tenant hereby absolutely and unconditionally
assigns and transfers to Landlord all of Tenant’s interest in all rentals and
income arising from any sublease entered into by Tenant, and Landlord may
collect such rent and income and apply same toward Tenant’s obligations under
this Lease; provided, however, that until a default shall occur in the
performance of Tenant’s obligations under this Lease, Tenant may receive,
collect and enjoy the rents accruing under such sublease.  Landlord shall not, by reason of this or any
other assignment of such rents to Landlord nor by reason of the collection of
the rents from a subtenant, be deemed to have assumed or recognized any
sublease or to be liable to the subtenant for any failure of Tenant to perform
and comply with any of Tenant’s obligations to such subtenant under such
sublease, including, but not limited to, Tenant’s obligation to return any
security deposit.  Tenant hereby
irrevocably authorizes and directs any such subtenant, upon receipt of a
written notice from Landlord stating that a default exists in the performance
of Tenant’s obligations under this Lease, to pay to Landlord the rents due as
they become due under the sublease. 
Tenant agrees that such subtenant shall have the right to rely upon any
such statement and request from Landlord, and that such subtenant shall pay such
rents to Landlord without any obligation or right to inquire as to whether such
default exists and notwithstanding any notice from or claim from Tenant to the
contrary.

 

18

 

(b)                                 In the event Tenant shall default in the
performance of its obligations under this Lease, Landlord at its option and
without any obligation to do so, may require any subtenant to attorn to
Landlord, in which event Landlord shall undertake the obligations of Tenant
under such sublease from the time of the exercise of said option to the
termination of such sublease; provided, however, Landlord shall not be liable
for any prepaid rents or security deposit paid by such subtenant to Tenant or
for any other prior defaults of Tenant under such sublease.

 

12.6                           TRANSFER PREMIUM FROM
ASSIGNMENT OR SUBLETTING.  Landlord shall be entitled to receive from
Tenant (as and when received by Tenant) as an item of additional rent the
following amounts (hereinafter the “Transfer Premium”): one-half of all amounts
received by Tenant from the subtenant or assignee in excess of the amounts
payable by Tenant to Landlord hereunder. 
The Transfer Premium shall be reduced by the reasonable brokerage
commissions and legal fees actually paid by Tenant in order to assign the Lease
or to sublet a portion of the Premises, and the cost of any tenant improvements
made by Tenant in connection with the assignment or sublease.  “Transfer Premium” shall mean all Base Rent,
additional rent or other consideration of any type whatsoever payable by the
assignee or subtenant in excess of the Base Rent and additional rent payable by
Tenant under this Lease.  If less than
all of the Premises is transferred, the Base Rent and the additional rent shall
be determined on a per rentable square foot basis.  “Transfer Premium” shall also include, but
not be limited to, key money and bonus money paid by the assignee or subtenant
to Tenant in connection with such Transfer, and any payment in excess of fair
market value for services rendered by Tenant to the assignee or subtenant or
for assets, fixtures, inventory, equipment, or furniture transferred by Tenant
to the assignee or subtenant in connection with such Transfer.

 

12.7                           LANDLORD’S OPTION TO
RECAPTURE SPACE.  Notwithstanding anything to the contrary
contained in this section 12, Landlord shall have the option, by giving
written notice to Tenant within thirty (30) days after receipt of any request
by Tenant to assign this Lease, to terminate this Lease as of the date thirty
(30) days after Landlord’s election.  In
the event Tenant has subleased to one or more subtenants space in the Premises
that exceeds in collective amount 7,500 rentable square feet (the “Maximum
Sublease Amount”), Landlord shall have the option, by giving written notice to
Tenant within thirty (30) days after receipt of any request by Tenant to
sublease space in excess of the Maximum Sublease Amount, to terminate this
Lease with respect to such additional space as of the date thirty (30) days
after Landlord’s election.  In the event
of a recapture by Landlord, if this Lease shall be canceled with respect to
less than the entire Premises, the Base Rent, Tenant’s Share of Operating
Expense increases and the number of parking spaces Tenant may use shall be
adjusted on the basis of the number of rentable square feet retained by Tenant
in proportion to the number of rentable square feet contained in the original
Premises, and this Lease as so amended shall continue thereafter in full force
and effect, and upon request of either party, the parties shall execute written
confirmation of same.  If Landlord
recaptures only a portion of the Premises, it shall construct and erect at its
sole cost such partitions as may be required to sever the space to be retained
by Tenant from the space recaptured by Landlord.  Landlord may, at its option, lease any
recaptured portion of the Premises to the proposed subtenant or assignee or to
any other person or entity without liability to Tenant.  Tenant shall not be entitled to any portion
of the profit, if any, Landlord may realize on account of such termination and
reletting.  Tenant acknowledges that the
purpose of this section 12.7 is to enable Landlord to receive profit in
the form of higher rent or other consideration to be received from an assignee
or subtenant, to give Landlord the ability to meet additional space
requirements of other tenants of the Project and to permit Landlord to control
the leasing of space in the Project. 
Tenant acknowledges and agrees that the requirements of this section 12.7
are commercially reasonable and are consistent with the intentions of Landlord
and Tenant.  Notwithstanding the
foregoing, in the event that Landlord exercises its right to recapture, Tenant
may within ten (10) days after receipt of Landlord’s notice exercising
such right, withdraw its request to assign this Lease or to sublease space in
the Premises and, upon delivery of such withdrawal notice to Landlord, Landlord’s
election to recapture shall automatically terminate and be of no force or effect.

 

12.8                           LANDLORD’S EXPENSES.  In
the event Tenant shall assign this Lease or sublet the Premises or request the
consent of Landlord to any Transfer, then Tenant shall pay Landlord’s
reasonable costs and expenses incurred in connection therewith, including, but
not limited to, attorneys’, architects’, accountants’, engineers’ or other
consultants’ fees; provided, however, Landlord shall not be entitled to recover
more than One Thousand Seven Hundred Fifty Dollars ($1,750.00) of attorneys’
fees with respect to any one Transfer.

 

12.9                           AFFILIATE TRANSFERS. 
Notwithstanding anything to the contrary contained in this section, an
assignment of the Lease or sublease of all or any portion of the Premises to
any entity which controls or is controlled

 

19

 

by Tenant or which acquires
all or substantially all of the assets of Tenant or which is the surviving
entity resulting from a merger or consolidation of Tenant (in each such case,
an “Affiliate”), shall not require Landlord’s consent under this section,
provided that at least fifteen (15) days prior to such assignment or sublease (i) Tenant
provides Landlord with reasonable evidence that any such entity maintains
annual revenues sufficient to meet the financial obligations hereunder; (ii) Tenant
notifies Landlord in writing of any such assignment or sublease and provides
Landlord with evidence that such assignment or sublease is a Transfer permitted
by this section; (iii) prior to the date an assignment or sublease will take
effect, the assignee or sublessee and Tenant shall enter into a consent to
sublease agreement or consent to assignment agreement using the forms attached
hereto as Exhibit F (the “Transfer Agreements”), and (iv) Tenant
shall pay the reasonable costs and expenses (including legal fees not to exceed
the maximum amount set forth in section 12.8) incurred by Landlord in
confirming that the assignment or sublease meets the requirements of this section and
in preparing any Transfer Agreement. 
Whether or not an assignment or sublease to an Affiliate is made
pursuant to the terms of this section, Tenant shall not be relieved of its
obligations under this Lease.  Sections
12.6 and 12.7 of the Lease shall not apply to assignments or subleases to
Affiliates.

 

13.                                 DEFAULT; REMEDIES.

 

13.1                           DEFAULT BY TENANT. 
Landlord and Tenant hereby agree that the occurrence of any one or more
of the following events is a material default by Tenant under this Lease and
that said default shall give Landlord the rights described in section 13.2.  Landlord or Landlord’s authorized agent shall
have the right to execute and to deliver any notice of default, notice to pay
rent or quit or any other notice Landlord gives Tenant.

 

(a)                                  Tenant’s failure to make any payment of Base
Rent, Tenant’s Share of Operating Expense increases, Tenant’s Share of Real
Property Taxes, parking charges, charges for after hours HVAC, late charges, or
any other payment required to be made by Tenant hereunder, as and when due,
where such failure shall continue for a period of five (5) days after
written notice thereof from Landlord to Tenant. 
In the event that Landlord serves Tenant with a notice to pay rent or
quit pursuant to applicable unlawful detainer statutes, such notice shall also
constitute the notice required by this section 13.1(a).

 

(b)                                 The abandonment of the Premises by Tenant in
which event Landlord shall not be obligated to give any notice of default to
Tenant.  Tenant’s vacating the Premises
shall not in and of itself constitute an abandonment.

 

(c)                                  The failure of Tenant to comply with any of
its obligations under sections 6.1, 6.2(b), 7.2, 7.3, 8, 12, 18, 19, 21, 23,
24, 26, 34, 35 and 56 where Tenant fails to comply with its obligations or
fails to cure any earlier breach of such obligation within ten (10) days
following written notice from Landlord to Tenant.  In the event Landlord serves Tenant with a
notice to quit or any other notice pursuant to applicable unlawful detainer
statutes, said notice shall also constitute the notice required by this section 13.1(c).

 

(d)                                 The failure by Tenant to observe or perform
any of the covenants, conditions or provisions of this Lease to be observed or
performed by Tenant (other than those referenced in sections 13.1(a), (b) and
(c), above), where such failure shall continue for a period of twenty (20) days
after written notice thereof from Landlord to Tenant; provided, however, that
if the nature of Tenant’s non-performance is such that more than twenty (20)
days are reasonably required for its cure, then Tenant shall not be deemed to
be in default if Tenant commences such cure within said twenty (20) day period
and thereafter diligently pursues such cure to completion.  In the event that Landlord serves Tenant with
a notice to quit or any other notice pursuant to applicable unlawful detainer
statutes, said notice shall also constitute the notice required by this section 13.1(d).

 

(e)                                  (i) The making by Tenant or any
guarantor of Tenant’s obligations hereunder of any general arrangement or
general assignment for the benefit of creditors; (ii) Tenant or any
guarantor becoming a “debtor” as defined in 11 U.S.C. 101 or any successor
statute thereto (unless, in the case of a petition filed against Tenant or
guarantor, the same is dismissed within sixty (60) days); (iii) the
appointment of a trustee or receiver to take possession of substantially all of
Tenant’s assets located at the Premises or of Tenant’s interest in this Lease,
where possession is not restored to Tenant within thirty (30) days; (iv) the
attachment, execution or other judicial seizure of substantially all of Tenant’s
assets located at the Premises or of Tenant’s interest in this Lease, where
such seizure is not discharged within thirty (30) days; or (v) the
insolvency of Tenant.  In the event that
any provision of this section 13.1(e) is unenforceable under
applicable law, such provision shall be of no force or effect.

 

20

 

(f)                                    The discovery by Landlord that any financial
statement, representation or warranty given to Landlord by Tenant, or by any
guarantor of Tenant’s obligations hereunder, was materially false at the time
given.  Tenant acknowledges that Landlord
has entered into this Lease in material reliance on such information.

 

(g)                                 If Tenant is a corporation or a partnership,
the dissolution or liquidation of Tenant.

 

(h)                                 If Tenant’s obligations under this Lease are
guaranteed: the death of a guarantor, the termination of a guarantor’s
liability with respect to this Lease other than in accordance with the terms of
such guaranty, a guarantor’s becoming insolvent or the subject of a bankruptcy
filing, a guarantor’s refusal to honor the guaranty, or a guarantor’s breach of
its guaranty obligation on an anticipatory breach basis.

 

13.2                           REMEDIES.

 

(a)                                  In the event of any material default or
breach of this Lease by Tenant, Landlord may, at any time thereafter, with or
without notice or demand, and without limiting Landlord in the exercise of any
right or remedy which Landlord may have by reason of such default:

 

(i)                                     terminate Tenant’s right to possession of the
Premises by any lawful means, in which case this Lease and the term hereof
shall terminate and Tenant shall immediately surrender possession of the
Premises to Landlord.  If Landlord terminates
this Lease, Landlord may recover from Tenant (A) the worth at the time of
award of the unpaid rent which had been earned at the time of termination; (B) the
worth at the time of award of the amount by which the unpaid rent which would
have been earned after termination until the time of award exceeds the amount
of such rental loss that Tenant proves could have been reasonably avoided; (C) the
worth at the time of award of the amount by which the unpaid rent for the
balance of the term after the time of award exceeds the amount of such rental
loss that Tenant proves could be reasonably avoided; and (D) any other
amount necessary to compensate Landlord for all detriment proximately caused by
Tenant’s failure to perform its obligations under the Lease or which in the ordinary
course of things would be likely to result therefrom, including, but not
limited to, the cost of recovering possession of the Premises, expenses of
releasing, including necessary renovation and alteration of the Premises,
reasonable attorneys’ fees, any real estate commissions actually paid by
Landlord and the unamortized value of any free rent, reduced rent, tenant
improvement allowance or other economic concessions provided by Landlord.  The “worth at time of award” of the amounts
referred to in section 13.2(a)(i)(A) and (B) shall be computed
by allowing interest at the lesser of ten percent (10%) per annum or the
maximum interest rate permitted by applicable law.  The worth at the time of award of the amount
referred to in section 13.2(a)(i)(C) shall be computed by discounting
such amount at the discount rate of the Federal Reserve Bank of San Francisco
at the time of award plus one percent (1%). 
For purposes of this section 13.2(a)(i), “rent” shall be deemed to
be all monetary obligations required to be paid by Tenant pursuant to the terms
of this Lease.

 

(ii)                                  maintain Tenant’s right of possession in
which event Landlord shall have the remedy described in California Civil Code section 1951.4
which permits Landlord to continue this Lease in effect after Tenant’s breach
and abandonment and recover rent as it becomes due.  In the event Landlord elects to continue this
Lease in effect, Tenant shall have the right to sublet the Premises or assign
Tenant’s interest in the Lease subject to the reasonable requirements contained
in section 12 of this Lease and provided further that Landlord shall not
require compliance with any standard or condition contained in section 12
that has become unreasonable at the time Tenant seeks to sublet or assign the
Premises pursuant to this section 13.2(a)(ii).

 

(iii)                               collect sublease rents (or appoint a receiver
to collect such rent) and otherwise perform Tenant’s obligations at the
Premises, it being agreed, however, that the appointment of a receiver for
Tenant shall not constitute an election by Landlord to terminate this Lease.

 

(iv)                              pursue any other remedy now or hereafter
available to Landlord under the laws or judicial decisions of the state in
which the Premises are located.

 

(b)                                 No remedy or election hereunder shall be
deemed exclusive, but shall, wherever possible, be cumulative with all other
remedies at law or in equity.  The
expiration or termination of this Lease and/or the termination of Tenant’s
right to possession of the Premises shall not relieve Tenant of liability under
any indemnity

 

21

 

provisions of this Lease as
to matters occurring or accruing during the term of the Lease or by reason of
Tenant’s occupancy of the Premises.

 

(c)                                  if Tenant abandons the Premises, Landlord may
re-enter the Premises and such re-entry shall not be deemed to constitute
Landlord’s election to accept a surrender of the Premises or to otherwise
relieve Tenant from liability for its breach of this Lease.  No surrender of the Premises shall be
effective against Landlord unless Landlord has entered into a written agreement
with Tenant in which Landlord expressly agrees to accept a surrender of the
Premises and relieve Tenant of liability under the Lease.  The delivery by Tenant to Landlord of
possession of the Premises shall not constitute the termination of the Lease or
the surrender of the Premises.

 

13.3                           DEFAULT BY LANDLORD. 
Landlord shall not be in default under this Lease unless Landlord fails
to perform obligations required of Landlord within thirty (30) days after
written notice by Tenant to Landlord and to the holder of any mortgage or deed
of trust encumbering the Project whose name and address shall have theretofore
been furnished to Tenant in writing, specifying wherein Landlord has failed to
perform such obligation; provided, however, that if the nature of Landlord’s
obligation is such that more than thirty (30) days are required for its cure,
then Landlord shall not be in default if Landlord commences performance within
such thirty (30) day period and thereafter diligently pursues the same to
completion.  In no event shall Tenant
have the right to terminate this Lease as a result of Landlord’s default, and
Tenant’s remedies shall be limited to damages and/or an injunction.  Tenant hereby waives its right to recover
consequential damages (including, but not limited to, lost profits) or punitive
damages arising out of a Landlord default. 
Subject to the provisions of section 11.6, this Lease and the
obligations of Tenant hereunder shall not be affected or impaired because
Landlord is unable to fulfill any of its obligations hereunder or is delayed in
doing so, if such inability or delay is caused by reason of a Force Majeure
Event, and the time for Landlord’s performance shall be extended for the period
of any such delay.  Any claim, demand,
right or defense by Tenant that arises out of this Lease or the negotiations
which preceded this Lease shall be barred unless Tenant commences an action
thereon, or interposes a defense by reason thereof, within twelve (12) months
after the date of the inaction, omission, event or action that gave rise to
such claim, demand, right or defense.

 

13.4                           LATE CHARGES. 
Tenant hereby acknowledges that late payment by Tenant to Landlord of
Base Rent, Tenant’s Share of Operating Expense increases, parking charges,
after hours HVAC charges, or other sums due hereunder will cause Landlord to
incur costs not contemplated by this Lease, the exact amount of which will be
extremely difficult to ascertain.  Such
costs include, but are not limited to, processing and accounting charges and
late charges which may be imposed on Landlord by the terms of any mortgage or
trust deed encumbering the Project. 
Accordingly, if any installment of Base Rent, Tenant’s Share of
Operating Expense increases, parking charges, after hours HVAC charges or any
other sum due from Tenant shall not be received by Landlord when such amount
shall be due, then, without any requirement for notice or demand to Tenant,
Tenant shall immediately pay to Landlord a late charge equal to five percent
(5%) of such overdue amount; provided, however, that Landlord shall waive the
late charge one (1) time during each calendar year of the term of this
Lease if Tenant pays all overdue sums within five (5) days after receipt
of written notice by Landlord to Tenant advising Tenant that such payment is
overdue.  The parties hereby agree that
such late charge represents a fair and reasonable estimate of the costs
Landlord will incur by reason of late payment by Tenant.  Acceptance of such late charge by Landlord
shall in no event constitute a waiver of Tenant’s default with respect to such
overdue amount, nor prevent Landlord from exercising any of the other rights
and remedies granted hereunder including the assessment of interest under section 13.5.

 

13.5                           INTEREST ON PAST-DUE
OBLIGATIONS.  Except as expressly herein provided, any
amount due to Landlord that is not paid when due shall bear interest at the
lesser of ten percent (10%) per annum or the maximum rate permitted by
applicable law.  Payment of such interest
shall not excuse or cure any default by Tenant under this Lease; provided,
however, that interest shall not be payable on late charges incurred by Tenant
nor on any amounts upon which late charges are paid by Tenant.

 

13.6                           PAYMENT OF RENT AND
SECURITY DEPOSIT AFTER DEFAULT.  If Tenant fails to pay Base Rent, Tenant’s
Share of Operating Expense increases, parking charges or any other monetary
obligation due hereunder within five (5) days following on the date it is
due and notice has been given to Tenant in each instance, after Tenant’s third
such failure in any twelve (12) month period, at Landlord’s option, all
monetary obligations of Tenant hereunder shall thereafter be paid by cashiers
check, and Tenant shall, upon demand, provide Landlord with

 

22

 

an additional security
deposit equal to three (3) months’ Base Rent.  If Landlord has required Tenant to make said
payments by cashiers check or to provide an additional security deposit, Tenant’s
failure to make a payment by cashiers check or to provide the additional
security deposit shall be a material default hereunder.

 

14.                                 LANDLORD’S RIGHT TO CURE
DEFAULT; PAYMENTS BY TENANT.  All covenants and agreements to be kept or
performed by Tenant under this Lease shall be performed by Tenant at Tenant’s
sole cost and expense and without any reduction of rent.  If Tenant shall fail to perform any of its
obligations under this Lease, within a reasonable time after such performance
is required by the terms of this Lease, Landlord may, but shall not be
obligated to, after three (3) days prior written notice to Tenant, make
any such payment or perform any such act on Tenant’s behalf without waiving its
rights based upon any default of Tenant and without releasing Tenant from any
obligations hereunder.  Tenant shall pay
to Landlord, within ten (10) days after delivery by Landlord to Tenant of
statements therefore, an amount equal to the expenditures reasonably made by Landlord
in connection with the remedying by Landlord of Tenant’s defaults pursuant to
the provisions of this section 14.

 

15.                                 CONDEMNATION.  If
any portion of the Premises or the Project are taken under the power of eminent
domain, or sold under the threat of the exercise of said power (all of which
are herein called “condemnation”), this Lease shall terminate as to the part so
taken as of the date the condemning authority takes title or possession,
whichever first occurs; provided that if so much of the Premises or Project are
taken by such condemnation as would substantially and adversely affect the
operation and profitability of Tenant’s business conducted from the Premises,
and said taking lasts for sixty (60) days or more, Tenant shall have the
option, to be exercised only in writing within thirty (30) days after Landlord
shall have given Tenant written notice of such taking (or in the absence of
such notice, within thirty (30) days after the condemning authority shall have
taken possession), to terminate this Lease as of the date the condemning
authority takes such possession.  If a
taking lasts for less than sixty (60) days, Tenant’s rent shall be abated
during said period but Tenant shall not have the right to terminate this
Lease.  If Tenant does not terminate this
Lease in accordance with the foregoing, this Lease shall remain in full force
and effect as to the portion of the Premises remaining, except that the rent
and Tenant’s Share of Operating Expenses shall be reduced in the proportion
that the usable floor area of the Premises taken bears to the total usable
floor area of the Premises.  Common Areas
taken shall be excluded from the Common Areas usable by Tenant and no reduction
of rent shall occur with respect thereto or by reason thereof.  Landlord shall have the option in its sole
discretion to terminate this Lease as of the taking of possession by the
condemning authority, by giving written notice to Tenant of such election
within thirty (30) days after receipt of notice of a taking by condemnation of
any part of the Premises or the Project. 
Any award for the taking of all or any part of the Premises or the
Project under the power of eminent domain or any payment made under threat of
the exercise of such power shall be the property of Landlord, whether such
award shall be made as compensation for diminution in value of the leasehold,
for good will, for the taking of the fee, as severance damages, or as damages
for tenant improvements; provided, however, that Tenant shall be entitled to
any separate award for loss of or damage to Tenant’s removable personal
property and for moving expenses.  In the
event that this Lease is not terminated by reason of such condemnation, and
subject to the requirements of any lender that has made a loan to Landlord encumbering
the Project, Landlord shall to the extent of severance damages received by
Landlord in connection with such condemnation, repair any damage to the Project
caused by such condemnation except to the extent that Tenant has been
reimbursed therefore by the condemning authority.  This section, not general principles of law
or California Code of Civil Procedure sections 1230.010 et seq., shall govern
the rights and obligations of Landlord and Tenant with respect to the
condemnation of all or any portion of the Project.

 

16.                                 VEHICLE PARKING.

 

16.1                           USE OF PARKING FACILITIES. 
During the term and subject to the rules and regulations attached
hereto as Exhibit “C,” as modified by Landlord from time to time (the “Rules”),
Tenant shall have the right but not the obligation to use the number of parking
spaces set forth in section 1.15 in the parking facility of the Project at
the monthly rate described in the Addendum to this Lease.  For purposes of this Lease, a “parking space”
refers to the space in which one (1) motor vehicle is intended to park
(e.g., a tandem parking stall includes two tandem parking spaces).  Landlord reserves the right at any time to
relocate Tenant’s parking spaces.  If
Tenant commits or allows in the parking facility any of the activities
prohibited by the Lease or the Rules, then Landlord shall have the right,
without notice, in addition to such other rights and remedies that it may have,
to remove or tow away the vehicle involved and charge the cost to Tenant, which
cost shall be payable by Tenant ten (10) days after

 

23

 

written demand by
Landlord.  Tenant’s parking rights are
the personal rights of Tenant and Tenant shall not transfer, assign, or
otherwise convey its parking rights separate and apart from this Lease.

 

16.2                           PARKING CHARGES. 
Monthly parking fees shall be payable in advance prior to the first day
of each calendar month.  Visitor parking
rates shall be determined by Landlord from time to time in Landlord’s sole
discretion.  The parking rates charged to
Tenant or Tenant’s visitors may not be the lowest parking rates charged by
Landlord for the use of the parking facility. 
Notwithstanding anything to the contrary contained herein, any tax
imposed on the privilege of occupying space in the parking facility, upon the
revenues received by Landlord from the parking facility or upon the charges
paid for the privilege of using the parking facility by any governmental or
quasi-governmental entity may be added by Landlord to the monthly parking
charges paid by Tenant at any time, or Landlord may require Tenant and other
persons using the parking facility to pay said amounts directly to the taxing
authority.

 

17.                                 BROKER’S FEE. 
Tenant and Landlord each represent and warrant to the other that neither
has had any dealings or entered into any agreements with any person, entity,
broker or finder other than the persons, if any, listed in section 1.17,
in connection with the negotiation of this Lease, and no other broker, person,
or entity is entitled to any commission or finder’s fee in connection with the
negotiation of this Lease, and Tenant and Landlord each agree to indemnify,
defend and hold the other harmless from and against any claims, damages, costs,
expenses, attorneys’ fees or liability for compensation or charges which may be
claimed by any such unnamed broker, finder or other similar party by reason of
any dealings, actions or agreements of the indemnifying party.

 

18.                                 ESTOPPEL CERTIFICATE.

 

18.1                           DELIVERY OF CERTIFICATE. 
Tenant shall from time to time upon not less than ten (10) days’
prior written notice from Landlord execute, acknowledge and deliver to Landlord
a statement in writing certifying such information as Landlord may reasonably
request including, but not limited to, the following: (a) that this Lease
is unmodified and in full force and effect (or, if modified, stating the nature
of such modification and certifying that this Lease, as so modified, is in full
force and effect) (b) the date to which the Base Rent and other charges
are paid in advance and the amounts so payable, (c) that there are not, to
Tenant’s knowledge, any uncured defaults or unfulfilled obligations on the part
of Landlord, or specifying such defaults or unfulfilled obligations, if any are
claimed, (d) that all tenant improvements to be constructed by Landlord,
if any, have been completed in accordance with Landlord’s obligations and (e) that
Tenant has taken possession of the Premises. 
Any such statement may be conclusively relied upon by any prospective
purchaser or encumbrancer of the Project.

 

18.2                           FAILURE TO DELIVER
CERTIFICATE.  At Landlord’s option, the failure of Tenant
to deliver such statement within such time shall constitute a material default
of Tenant hereunder, or it shall be conclusive upon Tenant that this (a) Lease
is in full force and effect, without modification except as may be represented
by Landlord, (b) there are no uncured defaults in Landlord’s performance, (c) not
more than one month’s Base Rent has been paid in advance, (d) all tenant
improvements to be constructed by Landlord, if any, have been completed in
accordance with Landlord’s obligations and (e) Tenant has taken possession
of the Premises.

 

19.                                 FINANCIAL INFORMATION.  From
time to time, at Landlord’s request, but not more frequently than once in any
calendar year, Tenant shall cause the following financial information to be
delivered to Landlord, at Tenant’s sole cost and expense, upon not less than
twenty (20) days’ advance written notice from Landlord: (a) a current financial
statement for Tenant and Tenant’s financial statements for the previous two
accounting years, (b) a current financial statement for any guarantor(s)
of this Lease and the guarantor’(s) financial statements for the previous two
accounting years and (c) such other financial information pertaining to
Tenant or any guarantor as Landlord or any lender or purchaser of Landlord may
reasonably request.  All financial
statements shall be prepared in accordance with generally accepted accounting
principals consistently applied and, if such is the normal practice of Tenant,
shall be audited by an independent certified public accountant.  Tenant hereby authorizes Landlord, from time
to time, without notice to Tenant, to obtain a credit report or credit history
on Tenant from any credit reporting company. 
To the extent Tenant has kept the financial information it provides to
Landlord confidential, Landlord shall use reasonable efforts to maintain the
confidentiality of the information (Landlord shall have the right to provide
such information to its employees, property managers, accountants, partners,
lenders and prospective purchasers).

 

24

 

20.                                 LANDLORD’S LIABILITY. 
Tenant acknowledges that Landlord shall have the right to transfer all
or any portion of its interest in the Project and to assign this Lease to the
transferee.  Tenant agrees that in the
event of such a transfer Landlord shall automatically be released from all liability
under this Lease arising following the transfer; and Tenant hereby agrees to
look solely to Landlord’s transferee for the performance of Landlord’s
obligations hereunder after the date of the transfer.  Upon such a transfer, Landlord shall, at its
option, return Tenant’s security deposit to Tenant or transfer Tenant’s
security deposit to Landlord’s transferee and, in either event, Landlord shall
have no further liability to Tenant for the return of its security
deposit.  Subject to the rights of any
lender holding a mortgage or deed of trust encumbering all or part of the
Project, Tenant agrees to look solely to Landlord’s equity interest in the
Project for the collection of any judgment requiring the payment of money by
Landlord arising out of (a) Landlord’s failure to perform its obligations
under this Lease or (b) the negligence or willful misconduct of Landlord,
its partners, employees and agents.  No
other property or assets of Landlord shall be subject to levy, execution or
other enforcement procedure for the satisfaction of any judgment or writ
obtained by Tenant against Landlord.  No
partner, employee or agent of Landlord shall be personally liable for the
performance of Landlord’s obligations hereunder or be named as a party in any
lawsuit arising out of or related to, directly or indirectly, this Lease and
the obligations of Landlord hereunder. 
The obligations under this Lease do not constitute personal obligations
of the individual partners of Landlord, if any, and Tenant shall not seek recourse
against the individual partners of Landlord or their assets.

 

21.                                 INDEMNITY. 
Tenant hereby agrees to indemnify, defend and hold harmless Landlord and
its employees, partners, agents, contractors, lenders and ground lessors (said
persons and entities are hereinafter collectively referred to as the “indemnified
Parties”) from and against any and all liability, loss, cost, damage, claims,
loss of rents, liens, judgments, penalties, fines, settlement costs,
investigation costs, the cost of consultants and experts, attorneys fees, court
costs and other legal expenses, the effects of environmental contamination, the
cost of environmental testing, the removal, remediation and/or abatement of
Hazardous Substances or Medical Waste (as said terms are defined below),
insurance policy deductibles and other expenses (hereinafter collectively
referred to as “Damages”) arising out of or related to an “Indemnified Matter”
(as defined below).  For purposes of this
section 21, an “Indemnified Matter” shall mean any matter for which one or
more of the Indemnified Parties incurs liability or Damages if the liability or
Damages arise out of or involve, directly or indirectly, Tenant’s or its
employees, agents, contractors or invitees (all of said persons or entities are
hereinafter collectively referred to as “Tenant Parties”) use or occupancy of
the Premises or the Project, any act, omission or neglect of a Tenant Party,
the existence, use or disposal of any Hazardous Substance (as defined in section 23
below) brought on to the project by a Tenant Party, the existence, use or
disposal of any Medical Waste (as defined in section 24 below) brought on
to the Project by a Tenant Party or any other matters for which Tenant has
agreed to indemnify Landlord pursuant to any other provision of this
Lease.  Tenant’s obligations hereunder
shall include, but shall not be limited to compensating the Indemnified Parties
for Damages arising out of indemnified Matters within ten (10) days after
written demand from an Indemnified Party and providing a defense, with counsel
reasonably satisfactory to the Indemnified Party, at Tenant’s sole expense,
within ten (10) days after written demand from the Indemnified Party, of
any claims, action or proceeding arising out of or relating to an Indemnified
Matter whether or not litigated or reduced to judgment and whether or not well
founded.  If Tenant is obligated to
compensate an Indemnified Party for Damages arising out of an Indemnified
Matter, Landlord shall have the immediate and unconditional right, but not the
obligation, without notice or demand to Tenant, to pay the damages and Tenant
shall, upon ten (10) days advance written notice from Landlord, reimburse
Landlord for the costs incurred by Landlord. 
By way of example, and not limitation, Landlord shall have the immediate
and unconditional right to cause any damages to the Common Areas, another
tenant’s premises or to any other part of the Project to be repaired and to
compensate other tenants of the Project or other persons or entities for
Damages arising out of an Indemnified Matter. 
The Indemnified Parties need not first pay any Damages to be indemnified
hereunder.  This indemnity is intended to
apply to the fullest extent permitted by applicable law.  Tenant’s obligations under this section shall
survive the expiration or termination of this Lease unless specifically waived
in writing by Landlord after said expiration or termination.  Notwithstanding anything to the contrary
contained in this section, Tenant shall not be obligated to indemnify an
Indemnified Party from liability to the extent such liability arises out of the
Indemnified Party’s negligence or willful misconduct.

 

22.                                 SIGNS. 
Tenant shall not place any sign upon the Premises (including on the
inside or the outside of the doors or windows of the Premises) or the Project
without Landlord’s prior written consent, which may be given or withheld in
Landlord’s sole discretion; provided, however, Tenant shall have the right, at
its sole cost and expense, to place signage conforming to Landlord’s standards
adjacent to each door into the Premises. 
Landlord shall have

 

25

 

the right to place any sign
it deems appropriate on any portion of the Project except the interior of the
Premises.  Any sign Landlord permits
Tenant to place upon the Premises shall be maintained by Tenant, at Tenant’s
sole expense.  Tenant shall also have the
right to have its name and the names of not more than three (3) of its
principal officers included in the Building’s directory, and the cost of
placing Tenant’s and its officers’ names in the directory and the cost of any
subsequent modifications thereto shall be paid by Tenant, at Tenant’s sole
expense.

 

23.                                 HAZARDOUS SUBSTANCES.

 

23.1                           DEFINITION AND CONSENT.  The
term “Hazardous Substance” as used in this Lease shall mean any product,
substance, chemical, material or waste whose presence, nature, quantity and/or
intensity of existence, use, manufacture, disposal, transportation, spill,
release or affect, either by itself or in combination with other materials
expected to be on the Premises, is either: (a) potentially injurious to
the public health, safety or welfare, the environment or the Premises, (b) regulated
or monitored by any governmental entity, (c) a basis for liability of
Landlord to any governmental entity or third party under any federal, state or
local statute or common law theory or (d) defined as a hazardous material
or substance by any federal, state or local law or regulation.  Except for small quantities or ordinary
office supplies such as copier toner, liquid paper, glue, ink and common
household cleaning materials, Tenant shall not cause or permit any Hazardous
Substance to be brought, kept, or used in or about the Premises or the Project
by Tenant, its agents, employees, contractors or invitees.

 

23.2                           DUTY TO INFORM LANDLORD.  If
Tenant knows, or has reasonable cause to believe, that a Hazardous Substance,
or a condition involving or resulting from same, has come to be located in, on
or under or about the Premises or the Project, Tenant shall immediately give
written notice of such fact to Landlord. 
Tenant shall also immediately give Landlord (without demand by Landlord)
a copy of any statement, report, notice, registration, application, permit,
license, given to or received from, any governmental authority or private
party, or persons entering or occupying the Premises, concerning the presence,
spill, release, discharge of or exposure to, any Hazardous Substance or
contamination in, on or about the Premises or the Project.

 

23.3                           INSPECTION; COMPLIANCE. 
Landlord and Landlord’s employees, agent, contractors and lenders shall
have the right to enter the Premises at any time in the case of an emergency,
and otherwise at reasonable times, for the purpose of inspecting the condition
of the Premises and for verifying compliance by Tenant with this section 23.  Landlord shall have the right to employ
experts and/or consultants in connection with its examination of the Premises
and with respect to the installation, operation, use, monitoring, maintenance,
or removal of any Hazardous Substance on or from the Premises.  The costs and expenses of any such
inspections shall be paid by the party requesting same, unless a contamination,
caused or materially contributed to by Tenant, is found to exist or be
imminent, or unless the inspection is requested or ordered by governmental
authority as the result of any such existing or imminent violation or
contamination.  In any such case, Tenant
shall upon request reimburse Landlord for the cost and expenses of such
inspection.

 

23.4                           Landlord’s Responsibilities. 
Landlord shall use commercially reasonable efforts to comply with all
laws relating to Hazardous Substances at the Project, provided that compliance
with such laws is not the responsibility of Tenant under this Lease or the
responsibility of any other person or entity (including other tenants or
property owners).  Notwithstanding the
foregoing, Landlord shall have no obligation to comply with a law unless
Landlord’s failure to comply therewith would prohibit Tenant from obtaining or
maintaining a certificate of occupancy for the Premises, or would unreasonably
and materially affect the safety of Tenant’s employees and visitors or create a
significant health hazard or otherwise materially interfere with or materially
affect Tenant’s permitted use and enjoyment of the Premises.

 

24.                                 MEDICAL WASTE.

 

24.1                           DEFINITION.  The
term “Medical Waste” shall mean the types of waste described in section 25023.2
of California’s Health and Safety Code and any similar type of waste.  Unless specifically permitted by section 6
of this Lease to use the Premises for medical office uses, Tenant shall not
cause or permit any Medical Waste to be brought, kept or used in or about the
Premises or the Project by Tenant, its employees, agents, contractors or
invitees.

 

26

 

24.2                           DISPOSAL OF MEDICAL WASTE. 
Tenant hereby agrees, at Tenant’s sole expense, to dispose of its
Medical Waste in compliance with all federal, state and local laws, rules and
regulations relating to the disposal of Medical Waste and to dispose of the
Medical Waste in a prudent and reasonable manner.  Tenant shall not place any Medical Waste in
refuse containers emptied by Landlord’s janitorial staff or in the Project’s refuse
containers.  At Landlord’s option, in
Landlord’s sole discretion, Landlord shall have the right, upon sixty (60) days’
advance written notice to Tenant, at any time and from time to time, to elect
to provide Medical Waste disposal services to Tenant.  If Landlord elects to provide Medical Waste
disposal services to Tenant, all costs incurred by Landlord in providing such
services shall be paid by Tenant to Landlord as additional rent.  Landlord may bill Tenant for said costs based
upon the actual cost of providing said services to Tenant, as determined by
Landlord, in Landlord’s sole discretion, or Landlord may bill said expenses
based upon Tenant’s Share of the total cost of providing said services.

 

24.3                           DUTY TO INFORM LANDLORD. 
Within ten (10) days following Landlord’s written request, Tenant
shall provide Landlord with any information requested by Landlord concerning
the existence, generation or disposal of Medical Waste at the Premises,
including, but not limited to, the following information: (a) the name,
address and telephone number of the person or entity employed by Tenant to
dispose of its Medical Waste, including a copy of any contract with said person
or entity, (b) a list of each type of Medical Waste generated by Tenant at
the Premises and a description of how Tenant disposes of said Medical Waste, (c) a
copy of any laws, rules or regulations in Tenant’s possession relating to
the disposal of the Medical Waste generated by Tenant, and (d) copies of
any licenses or permits obtained by Tenant in order to generate or dispose of
said Medical Waste.  Tenant shall also
immediately provide to Landlord (without demand by Landlord) a copy of any
notice, registration, application, permit, or license given to or received from
any governmental authority or private party, or persons entering or occupying
the Premises, concerning the presence, release, exposure or disposal of any
Medical Waste in or about the Premises or the Project.

 

24.4                           INSPECTION; COMPLIANCE. 
Landlord and Landlord’s employees, agents, contractors and lenders shall
have the right to enter the Premises at any time in the case of an emergency,
and otherwise at reasonable times, for the purpose of verifying compliance by
Tenant with this section 24. 
Landlord shall have the right to employ experts and/or consultants in
connection with its examination of the Premises and with respect to the
generation and disposal of Medical Waste on or from the Premises.  The cost and expenses of any such inspection
shall be paid by Landlord, unless it is determined that Tenant is not disposing
of its Medical Waste in a manner permitted by applicable law, in which case
Tenant shall immediately reimburse Landlord for the cost of such inspection.

 

25.                                 TENANT IMPROVEMENTS. 
Tenant acknowledges and agrees that Landlord shall not be obligated to
construct any tenant improvements on behalf of Tenant unless a work letter
agreement (the “Work Letter”) is attached to this Lease as an exhibit and the
Work Letter is fully completed and executed by Landlord.  If a space plan is attached to the Work
Letter, the space plan shall not be binding on Landlord unless the space plan
has been approved by Landlord in writing. 
Except as set forth in a Work Letter, it is specifically understood and
agreed that Landlord has no obligation and has made no promises to alter,
remodel, improve, renovate, repair or decorate the Premises, the Project, or
any part thereof, or to provide any allowance for such purposes, and except as
otherwise provided in this Lease, that no representations respecting the
condition of the Premises or the Project have been made by Landlord to Tenant.

 

26.                                 SUBORDINATION.

 

26.1                           EFFECT OF SUBORDINATION.  This
Lease, and any Option (as defined in section 27 below) granted hereby,
upon Landlord’s written election, shall be subject and subordinate to any
ground lease, mortgage, deed of trust, or any other hypothecation or security
now or hereafter placed upon the Project and to any and all advances made on
the security thereof and to all renewals, modifications, consolidations,
replacements and extensions thereof. 
Notwithstanding such subordination, Tenant’s right to quiet possession
of the Premises shall not be disturbed if Tenant is not in default and so Long
as Tenant shall pay the rent and observe and perform all of the provisions of
this Lease, unless this Lease is otherwise terminated pursuant to its
terms.  At the request of any mortgagee,
trustee or ground lessor, Tenant shall attorn to such person or entity.  If any mortgagee, trustee or ground lessor
shall elect to have this Lease and any Options granted hereby prior to the lien
of its mortgage, deed of trust or ground lease, and shall give written notice
thereof to Tenant, this Lease and such Options shall be deemed prior to such
mortgage, deed of trust or ground lease, whether this Lease or such Options are
dated prior or subsequent to the

 

27

 

date of said mortgage, deed
of trust or ground lease or the date of recording thereof.  In the event of the foreclosure of a security
device, the new owner shall not (a) be liable for any act or omission of
any prior landlord or with respect to events occurring prior to its acquisition
of title, (b) be liable for the breach of this Lease by any prior
landlord, be subject to any offsets or defenses which Tenant may have against
the prior landlord or (c) be liable to Tenant for the return of its
security deposit unless the security deposit has been transferred to the
mortgagee, trustee or ground lessee.

 

26.2                           EXECUTION OF DOCUMENTS. 
Tenant agrees to execute and acknowledge any documents Landlord
reasonably requests that Tenant execute to effectuate an attornment, a
subordination, or to make this Lease or any Option granted herein prior to the
lien of any mortgage, deed of trust or ground lease, as the case may be.  Tenant acknowledges that the subordination
agreement may give the lender the right, in the lender’s sole discretion, to
continue this Lease in effect or to terminate this Lease in the event of a
foreclosure sale.  Tenant’s failure to
execute such documents within ten (10) days after written demand shall
constitute a material default by Tenant hereunder or, at Landlord’s option,
Landlord shall have the right to execute such documents on behalf of Tenant as
Tenant’s attorney-in-fact.  Tenant does
hereby make, constitute and irrevocably appoint Landlord as Tenant’s
attorney-in-fact and in Tenant’s name, place and stead, to execute such
documents in accordance with this section 26.2.

 

26.3                           NO EXISTING DEEDS OF TRUST.  No mortgages
or deeds of trust presently encumber Landlord’s interest in the Project.  Notwithstanding anything to the contrary
contained in the Lease, Tenant shall not be obligated to subordinate its
interest in the Lease to a mortgage or deed of trust obtained unless the lender
provides Tenant with a commercially reasonable nondisturbance agreement.

 

27.                                 OPTIONS.

 

27.1                           DEFINITION.  As
used in this Lease, the word “Option” has the following meaning: (1) the
right or option to extend the term of this Lease or to renew this Lease, (2) the
option or right of first refusal to lease the Premises or the right of first
offer to lease the Premises or the right of first refusal to lease other space
within the Project or the right of first offer to lease other space within the
Project, and (3) the right or option to terminate this Lease prior to its
expiration date or to reduce the size of the Premises.  Any Option granted to Tenant by Landlord must
be evidenced by a written option agreement attached to this Lease as a rider or
addendum or said option shall be of no force or effect.

 

27.2                           OPTIONS PERSONAL.  Each
Option granted to Tenant in this Lease, if any, is personal to the original
Tenant and any Affiliate to whom Tenant assigns its interest in this Lease (an “Assuming
Affiliate”) and may be exercised only by the original Tenant or an Assuming
Affiliate while occupying the entire Premises and may not be exercised or be
assigned, voluntarily or involuntarily, by or to any person or entity other
than Tenant or an Assuming Affiliate, including, without limitation, any
permitted transferee as defined in section 12.  The Options, if any, herein granted to Tenant
are not assignable separate and apart from this Lease, nor may any Option be
separated from this Lease in any manner, either by reservation or
otherwise.  If at any time an Option is
exercisable by Tenant or an Assuming Affiliate, the Lease has been assigned to
a person or entity other than an Affiliate, or a sublease exists as to any
portion of the Premises to a person or entity other than an Affiliate, the
Option shall be deemed null and void and neither Tenant nor any assignee or
subtenant shall have the right to exercise the Option.

 

27.3                           MULTIPLE OPTIONS.  In
the event that Tenant has multiple Options to extend or renew this Lease a
later Option cannot be exercised unless the prior Option to extend or renew
this Lease has been so exercised.

 

27.4                           EFFECT OF DEFAULT ON
OPTIONS.  Tenant shall have no right to exercise an
Option (i) during the time commencing from the date Landlord gives to
Tenant a notice of default pursuant to section 13.1 and continuing until
the noncompliance alleged in said notice of default is cured, or (ii) if
Tenant is in default of any of the terms, covenants or conditions of this
Lease.  The period of time within which
an Option may be exercised shall not be extended or enlarged by reason of
Tenant’s inability to exercise an Option because of the provisions of this section 27.4.

 

27.5                           Intentionally deleted.

 

28

 

27.6                           Intentionally
deleted.

 

28.                                 LANDLORD RESERVATIONS. 
Landlord shall have the right: (a) to change the name and address
of the Project or Building upon not less than ninety (90) days prior written
notice; provided, however, in such event Landlord shall reimburse Tenant for
all reasonable costs Tenant pays to third parties for the replacement of
pre-printed stationary, address labels and other packaging in an amount not to
exceed $5000; (b) to, at Tenant’s expense, except as may be otherwise
provided in the Work Letter, provide and install Building standard graphics on
or near the door of the Premises and such portions of the Common Areas as
Landlord shall determine, in Landlord’s sole discretion; (c) to permit any
tenant the exclusive right to conduct any business as long as such exclusive
right does not conflict with any rights expressly given herein; and (d) to
place signs, notices or displays upon the roof, interior, exterior or Common
Areas of the Project.  Tenant shall not
use a representation (photographic or otherwise) of the Building or the Project
or their name(s) in connection with Tenant’s business except as the address of
Tenant’s business or suffer or permit anyone, except in an emergency, to go
upon the roof of the Building.  Landlord
reserves the right to use the exterior walls of the Premises, and the area
beneath, adjacent to and above the Premises together with the right to install,
use, maintain and replace equipment, machinery, pipes, conduits and wiring
through the Premises, which serve other parts of the Project provided that
Landlord’s use does not unreasonably interfere with Tenant’s use of the
Premises.

 

29.                                 CHANGES TO PROJECT. 
Landlord shall have the right, in Landlord’s sole discretion, from time
to time, to make changes to the size, shape, location, number and extent of the
improvements comprising the Project (hereinafter referred to as “Changes”)
including, but not limited to, the Project interior and exterior, the Common
Areas, elevators, escalators, restrooms, HVAC, electrical systems,
communication systems, fire protection and detection systems, plumbing systems,
security systems, parking control systems, driveways, entrances, parking
spaces, parking areas and landscaped areas; provided, however, that Landlord
shall not materially change the location of the exterior walls of the Building
or materially change the location of the Common Areas within the Building in a
way that would materially and adversely effect Tenant’s use of the Premises
without the prior written consent of Tenant, which consent shall not be
unreasonably withheld, conditioned or delayed. 
In connection with the Changes, Landlord may, among other things, erect
scaffolding or other necessary structures at the Project, limit or eliminate
access to portions of the Project, including portions of the Common Areas, or
perform work in the Building, which work may create noise, dust or leave debris
in the Building.  Tenant hereby agrees
that such Changes and Landlord’s actions in connection with such Changes shall
in no way constitute a constructive eviction of Tenant or entitle Tenant to any
abatement of rent.  Landlord shall have
no responsibility or for any reason be liable to Tenant for any direct or
indirect injury to or interference with Tenant’s business
arising from the Changes, nor shall Tenant be entitled to any compensation or
damages from Landlord for any inconvenience or annoyance occasioned by such
Changes or Landlord’s actions in connection with such Changes.  Landlord shall use commercially reasonable
efforts to minimize disruption to Tenant’s business operations caused by
Changes.

 

30.                                 intentionally deleted.

 

31.                                 HOLDING OVER.  If
Tenant remains in possession of the Premises or any part thereof after the
expiration or earlier termination of the term hereof with Landlord’s consent,
such occupancy shall be a tenancy from month to month upon all the terms and
conditions of this Lease pertaining to the obligations of Tenant, except that
the Base Rent payable shall be the greater of one hundred fifty percent (150%)
of the Base Rent payable immediately preceding the termination date of this
Lease, and all Options, if any, shall be deemed terminated and be of no further
effect.  If Tenant remains in possession
of the Premises or any part thereof after the expiration of the term hereof
without Landlord’s consent, Tenant shall, at Landlord’s option, be treated as a
tenant at sufferance or a trespasser. 
Nothing contained herein shall be construed to constitute Landlord’s
consent to Tenant holding over at the expiration or earlier termination of the
Lease term or to give Tenant the right to hold over after the expiration or
earlier termination of the Lease term. 
Tenant hereby agrees to indemnify, hold harmless and defend Landlord from
any cost, loss, claim or liability (including attorneys’ fees) Landlord may
incur as a result of Tenant’s failure to surrender possession of the Premises
to Landlord upon the termination of this Lease.

 

32.                                 LANDLORD’S ACCESS.

 

32.1                           ACCESS.  Landlord and
Landlord’s agents, contractors and employees shall have the right to enter the
Premises at reasonable times and, except in the event of an emergency, on
reasonable prior notice (which may be

 

29

 

oral)
for the purpose of inspecting the Premises, performing any services required of
Landlord, showing the Premises to prospective purchasers, lenders, or tenants,
undertaking safety measures and making alterations, repairs, improvements or
additions to the Premises or to the Project. 
In the event of an emergency, Landlord may gain access to the Premises
by any reasonable means, and Landlord shall not be liable to Tenant for damage
to the Premises or to Tenant’s property resulting from such access.  Landlord may at any time place on or about
the Building for sale or for lease signs and Landlord may at any time during
the last one hundred twenty (120) days of the term hereof place on or about the
Premises for lease signs.

 

32.2                           KEYS.  Landlord shall
have the right to retain keys to the locks on the entry doors to the Premises
and all interior doors at the Premises. 
At Landlord’s option, Landlord may require Tenant to obtain all keys to
door locks at the Premises from Landlord’s engineering staff or Landlord’s
locksmith and to only use Landlord’s engineering staff or Landlord’s locksmith
to change locks at the Premises.  Tenant
shall pay Landlord’s or its locksmith’s standard charge for all keys and other
services obtained from Landlord’s engineering staff or locksmith other than key
cards for the employees of Tenant initially occupying the Premises in a total
amount not to exceed fifty (50) key cards which shall be provided to Tenant
free of charge at the time possession of the Premises is delivered to Tenant.

 

33.                                 SECURITY MEASURES. 
Tenant hereby acknowledges that Landlord shall have no obligation
whatsoever to provide guard service or other security measures for the benefit
of the Premises or the Project, and Landlord shall have no liability to Tenant
due to its failure to provide such services. 
Tenant assumes all responsibility for the protection of Tenant, its
agents, employees, contractors and invitees and the property of Tenant and of
Tenant’s agents, employees, contractors and invitees from acts of third
parties.  Nothing herein contained shall
prevent Landlord, at Landlord’s sole option, from implementing security
measures for the Project or any part thereof, in which event Tenant shall
participate in such security measures and the cost thereof shall be included
within the definition of Operating Expenses, and Landlord shall have no
liability to Tenant and its agents, employees, contractors and invitees arising
out of Landlord’s negligent provision of security measures.  Landlord shall have the right, but not the
obligation, to require all persons entering or leaving the Project to identify themselves to a security guard and to reasonably establish
that such person should be permitted access to the Project.

 

34.                                 EASEMENTS.  Landlord
reserves to itself the right, from time to time, to grant such easements,
rights and dedications that Landlord deems necessary or desirable, and to cause
the recordation of parcel maps and restrictions, so long as such easements,
rights, dedications, maps and restrictions do not unreasonably interfere with
the use of the Premises by Tenant. 
Tenant shall sign any of the aforementioned documents within ten (10) days
after Landlord’s request and Tenant’s failure to do so shall constitute a
material default by Tenant.  The
obstruction of Tenant’s view, air, or light by any structure erected in the
vicinity of the Project, whether by Landlord or third parties, shall in no way
affect this Lease or impose any liability upon Landlord.

 

35.                                 TRANSPORTATION MANAGEMENT. 
Tenant shall fully comply at its sole expense with all present or future
programs implemented or required by any governmental or quasi-governmental
entity or Landlord to manage parking, transportation, air pollution, or traffic
in and around the Project or the metropolitan area in which the Project is
located.

 

36.                                 SEVERABILITY.  The
invalidity of any provision of this Lease as determined by a court of competent
jurisdiction shall in no way affect the validity of any other provision hereof.

 

37.                                 TIME OF ESSENCE.  Time
is of the essence with respect to each of the obligations to be performed by
Tenant and Landlord under this Lease.

 

38.                                 DEFINITION OF ADDITIONAL RENT.  All monetary obligations of Tenant to
Landlord under the terms of this Lease, including, but not limited to, Base
Rent, Tenant’s Share of Operating Expenses, parking charges, late charges and
charges for after hours HVAC shall be deemed to be rent.

 

39.                                 INCORPORATION OF PRIOR AGREEMENTS.  This Lease and the attachments listed in section 1.18
contain all agreements of the parties with respect to the lease of the Premises
and any other matter mentioned herein. 
No prior or contemporaneous agreement or understanding pertaining to any
such matter shall be effective.  Except
as otherwise stated in this Lease, Tenant hereby acknowledges that no real
estate broker nor Landlord or any

 

30

 

employee or agents of any of said
persons has made any oral or written warranties or representations to Tenant
concerning the condition or use by Tenant of the Premises or the Project or
concerning any other matter addressed by this Lease.

 

40.                                 AMENDMENTS.  This
Lease may be modified in writing only, signed by the parties in interest at the
time of the modification.

 

41.                                 NOTICES.  Subject to
the requirements of section 27.6 of this Lease, all notices required or
permitted by this Lease shall be in writing and may be delivered (a) in
person (by hand, by messenger or by courier service), (b) by U.S. Postal
Service regular mail, (c) by U.S. Postal Service certified mail, return
receipt requested, (d) by U.S. Postal Service Express Mail, Federal
Express or other overnight courier, or (e) by facsimile transmission, and
shall be deemed sufficiently given if served in a manner specified in this section 41.  The addresses set forth in section 1.19
of this Lease shall be the address of each party for notice purposes.  Landlord or Tenant may by written notice to
the other specify a different address for notice purposes, except that upon
Tenant’s taking possession of the Premises, the Premises shall constitute
Tenant’s address for the purpose of mailing or delivering notices to
Tenant.  A copy of all notices required
or permitted to be given to Landlord hereunder shall be concurrently
transmitted to such party or parties at such addresses as Landlord may from
time to time hereinafter designate by written notice to Tenant.  Any notice sent by regular mail or by
certified mail, return receipt requested, shall be deemed given on receipt by
the addressee or refusal of delivery. 
Notices delivered by U.S. Express Mail, Federal Express or other courier
shall be deemed given on the date delivered by the carrier to the appropriate
party’s address for notice purposes.  If
any notice is transmitted by facsimile transmission, the notice shall be deemed
delivered upon telephone confirmation of receipt of the transmission thereof at
the appropriate party’s address for notice purposes.  A copy of all notices delivered to a party by
facsimile transmission shall also be mailed to the party on the date the
facsimile transmission is completed.  If
notice is received on Saturday, Sunday or a legal holiday, it shall be deemed
received on the next business day. 
Nothing contained herein shall be construed to limit Landlord’s right to
serve any notice to pay rent or quit or similar notice by any method permitted
by applicable law, and any such notice shall be effective if served in
accordance with any method permitted by applicable law whether or not the
requirements of this section have been met.

 

42.                                 WAIVERS.  No waiver by
Landlord or Tenant of any provision hereof shall be deemed a waiver of any
other provision hereof or of any subsequent breach by Landlord or Tenant of the
same or any other provision.  Landlord’s
consent to, or approval of, any act shall not be deemed to render unnecessary
the obtaining of Landlord’s consent to or approval of any subsequent act by
Tenant.  The acceptance of rent hereunder
by Landlord shall not be a waiver of any preceding breach by Tenant of any
provision hereof, other than the failure of Tenant to pay the particular rent
so accepted, regardless of Landlord’s knowledge of such preceding breach at the
time of acceptance of such rent.  No
acceptance by Landlord of partial payment of any sum due from Tenant shall be
deemed a waiver by Landlord of its right to receive the full amount due, nor
shall any endorsement or statement on any check or accompanying letter from
Tenant be deemed an accord and satisfaction.

 

43.                                 Intentionally
deleted.

 

44.                                 BINDING EFFECT; CHOICE OF LAW.  Subject to any provision hereof restricting
assignment or subletting by Tenant, this Lease shall bind the parties, their
heirs, personal representatives, successors and assigns.  This Lease shall be governed by the laws of
the state in which the Project is located and any litigation concerning this
Lease between the parties hereto shall be initiated in the county in which the
Project is located.

 

45.                                 ATTORNEYS’ FEES.  If
Landlord or Tenant brings an action to enforce the terms hereof or declare
rights hereunder, the prevailing party in any such action, or appeal thereon,
shall be entitled to its reasonable attorneys’ fees and court costs to be paid
by the losing party as fixed by the court in the same or separate suit, and
whether or not such action is pursued to decision or judgment.  The attorneys’ fee award shall not be
computed in accordance with any court fee schedule, but shall be such as to
fully reimburse all attorneys’ fees and court costs reasonably incurred in good
faith.  Landlord and Tenant agree that
attorneys’ fees incurred with respect to defaults and bankruptcy are actual
pecuniary losses within the meaning of section 365(b)(1)(B) of
the Bankruptcy Code or any successor statute.

 

31

 

46.                                 AUCTIONS.  Tenant
shall not conduct, nor permit to be conducted, either voluntarily or
involuntarily, any auction upon the Premises or the Common Areas.  The holding of any auction on the Premises or
Common Areas in violation of this section 46 shall constitute a material
default hereunder.

 

47.                                 EXEMPTION OF LANDLORD FROM LIABILITY.  Tenant hereby agrees that Landlord shall not
be liable for injury to Tenant’s business or any loss of income therefrom or
for loss of or damage to the merchandise, tenant improvements, fixtures,
furniture, equipment, computers, files, automobiles, or other property of
Tenant, Tenant’s employees, agents, contractors or invitees, or any other
person in or about the Project, nor shall Landlord be liable for injury to the
person of Tenant, Tenant’s employees, agents, contractors or invitees, whether
such damage or injury is caused by or results from any cause whatsoever
including, but not limited to, theft, criminal activity at the Project,
negligent security measures, bombings or bomb scares, Hazardous Substances or
Medical Waste (as defined above), fire, steam, electricity, gas, water or rain,
flooding, breakage of pipes, sprinklers, plumbing, air conditioning or lighting
fixtures, or from any other cause, whether said damage or injury results from
conditions arising upon the Premises or upon other portions of the Project, or
from other sources or places, or from new construction or the repair,
alteration or improvement of any part of the Project, and regardless of whether
the cause of the damage or injury arises out of Landlord’s or its employees,
agents or contractors negligent or intentional acts.  Landlord shall not be liable for any damages
arising from any act or neglect of any employees, agents, contractors or
invitees of any other tenant, occupant or user of the Project, nor from the
failure of Landlord to enforce the provisions of the lease of any other tenant
of the Project.  Tenant, as a material
part of the consideration to Landlord hereunder, hereby assumes all risk of
damage to Tenant’s property or business or injury to persons, in, upon or about
the Project arising from any cause, including Landlord’s negligence or the
negligence of its employees, agents or contractors, and Tenant hereby waives
all claims in respect thereof against Landlord, its employees, agents and
contractors.  Except to the extent
covered by Tenant’s insurance and waiver of subrogation provided in the Lease,
the limitations on Landlord’s liability contained in this section 47 shall
not apply to injury or damage which results from the negligence or willful
misconduct of Landlord, its agents, employees, contractors, subcontractors or
assigns.

 

48.                                 MERGER.  The voluntary
or other surrender of this Lease by Tenant, or a mutual cancellation thereof,
or a termination by Landlord, shall not result in the merger of Landlord’s and
Tenant’s estates, and shall, at the option of Landlord, terminate all or any
existing subtenancies or may, at the option of Landlord, operate as an
assignment to Landlord of any or all of such subtenancies.

 

49.                                 QUIET POSSESSION. 
Subject to the other terms and conditions of this Lease, and the rights
of any lender, and provided Tenant is not in default hereunder, Tenant shall
have quiet possession of the Premises for the entire term hereof subject to all
of the provisions of this Lease.

 

50.                                 AUTHORITY.  If Tenant
is a corporation, trust, or general or limited partnership, Tenant, and each
individual executing this Lease on behalf of such entity, represents and
warrants that such individual is duly authorized to execute and deliver this
Lease on behalf of said entity.  If
Tenant is a corporation, trust or partnership, Tenant shall deliver to Landlord
upon demand evidence of such authority satisfactory to Landlord.

 

51.                                 CONFLICT.  Except as
otherwise provided herein to the contrary, any conflict between the printed
provisions, exhibits, addenda or riders of this Lease and the typewritten or
handwritten provisions, if any, shall be controlled by the typewritten or
handwritten provisions.

 

52.                                 MULTIPLE PARTIES.  If
more than one person or entity is named as Tenant herein, the obligations of
Tenant shall be the joint and several responsibility
of all persons or entities named herein as Tenant.  Service of a notice in accordance with section 41
on one Tenant shall be deemed service of notice on all Tenants.

 

53.                                 INTERPRETATION.  This
Lease shall be interpreted as if it was prepared by both parties and
ambiguities shall not be resolved in favor of Tenant because all or a portion
of this Lease was prepared by Landlord. 
The captions contained in this Lease are for convenience only and shall
not be deemed to limit or alter the meaning of this Lease.  As used in this Lease the words tenant and
landlord include the plural as well as the singular.  Words used in the neuter gender include the
masculine and feminine gender.

 

54.                                 PROHIBITION AGAINST RECORDING.  Neither this Lease, nor any
memorandum, affidavit or other writing with respect thereto, shall be
recorded by Tenant or by anyone acting through, under or on behalf of Tenant.

 

32

 

Landlord
shall have the right to record a memorandum of this Lease, and Tenant shall
execute, acknowledge and deliver to Landlord for recording any memorandum
prepared by Landlord.

 

55.                                 RELATIONSHIP OF PARTIES. 
Nothing contained in this Lease shall be deemed or construed by the
parties hereto or by any third party to create the relationship of principal
and agent, partnership, joint venturer or any association between Landlord and
Tenant.

 

56.                                 RULES AND REGULATIONS. 
Tenant agrees to abide by and conform to the Rules and to cause its
employees, suppliers, customers and invitees to so abide and conform.  Landlord shall have the right, from time to
time, to modify, amend and enforce the Rules in a non-discriminatory
manner.  Landlord shall not be
responsible to Tenant for the failure of other persons including, but not
limited to, other tenants, their agents, employees and invitees to comply with
the Rules.  Tenant acknowledges that the
leases of other tenants may not obligate them to comply with some or all of the
Rules.  However, if the lease of another
tenant does obligate the tenant to comply with a Rule, and the tenant’s failure
to comply with such Rule is having a material adverse effect on Tenant’s
use of the Premises, Landlord shall cooperate with Tenant in attempting to
cause the tenant to comply with the Rule, provided, however, Landlord shall
have no obligation to bring a legal action against the non-complying tenant.

 

57.                                 RIGHT TO LEASE. 
Landlord reserves the absolute right to effect
such other tenancies in the Project as Landlord in its sole discretion shall
determine, and Tenant is not relying on any representation that any specific
tenant or number of tenants will occupy the Project.

 

58.                                 Intentionally
deleted.

 

59.                                 Intentionally
deleted.

 

60.                                 ATTACHMENTS.  The
items listed in section 1.18 are a part of this Lease and are incorporated
herein by this reference.

 

61.                                 CONFIDENTIALITY. 
Tenant acknowledges and agrees that the terms of this Lease are confidential
and constitute proprietary information of Landlord.  Disclosure of the terms hereof could
adversely affect the ability of Landlord to negotiate other leases with respect
to the Project and may impair Landlord’s relationship with other tenants of the
Project.  Tenant agrees that it and its
partners, officers, directors, employees, brokers, and attorneys, if any, shall
not disclose the terms and conditions of this Lease to any other person or
entity without the prior written consent of Landlord which may be given or
withheld by Landlord, in Landlord’s sole discretion.  It is understood and agreed that damages
alone would be an inadequate remedy for the breach of this provision by Tenant,
and Landlord shall also have the right to seek specific performance of this
provision and to seek injunctive relief to prevent its breach or continued
breach.  Notwithstanding anything to the
contrary contained herein, Tenant shall have the right to disclose this Lease
and its terms to its attorneys, accountants, auditors and lenders, and in
connection with any governmental filing wherein this Lease is deemed to be
material.

 

62.                                 WAIVER
OF JURY TRIAL.  LANDLORD AND TENANT
HEREBY WAIVE THEIR RESPECTIVE RIGHT TO TRIAL BY JURY OF ANY CAUSE OF ACTION,
CLAIM, COUNTERCLAIM OR CROSS-COMPLAINT IN ANY ACTION, PROCEEDING AND/OR HEARING
BROUGHT BY EITHER LANDLORD AGAINST TENANT OR TENANT AGAINST LANDLORD ON ANY
MATTER WHATSOEVER ARISING OUT OF, OR IN ANY WAY CONNECTED WITH, THIS LEASE, THE
RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OR OCCUPANCY OF THE PREMISES,
OR ANY CLAIM OF INJURY OR DAMAGE, OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY
LAW, STATUTE, OR REGULATION, EMERGENCY OR OTHERWISE, NOW OR HEREAFTER IN
EFFECT.

 

33

 

LANDLORD AND TENANT
ACKNOWLEDGE THAT THEY HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM
AND PROVISION CONTAINED HEREIN AND, BY EXECUTION OF THIS LEASE, SHOW THEIR
INFORMED AND VOLUNTARY CONSENT THERETO. 
THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE
TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND
PURPOSE OF LANDLORD AND TENANT WITH RESPECT TO THE PREMISES.  TENANT ACKNOWLEDGES THAT IT HAS BEEN GIVEN
THE OPPORTUNITY TO HAVE THIS LEASE REVIEWED BY ITS LEGAL COUNSEL PRIOR TO ITS
EXECUTION.  PREPARATION OF THIS LEASE BY
LANDLORD OR LANDLORD’S AGENT AND SUBMISSION OF SAME TO TENANT SHALL NOT BE
DEEMED AN OFFER BY LANDLORD TO LEASE THE PREMISES TO TENANT OR THE GRANT OF AN
OPTION TO TENANT TO LEASE THE PREMISES. 
THIS LEASE SHALL BECOME BINDING UPON LANDLORD ONLY WHEN FULLY EXECUTED
BY BOTH PARTIES AND WHEN LANDLORD HAS DELIVERED A FULLY EXECUTED ORIGINAL OF
THIS LEASE TO TENANT.

 

LANDLORD:

 

The Realty Associates
Fund VI, L.P., a Delaware limited partnership

 

	
  By:

  	
  Realty Associates Fund
  VI LLC, a Massachusetts

  
	
   

  	
  limited liability
  company, general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Realty Associates
  Advisors LLC, a Delaware

  
	
   

  	
   

  	
  limited liability
  company, manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Realty
  Associates Advisors Trust, a

  
	
   

  	
   

  	
   

  	
  Massachusetts business
  trust, sole member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Scott W.
  Amling

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Scott W. Amling

  
	
   

  	
   

  	
   

  	
   

  	
  Regional
  Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Realty
  Associates Fund VI Texas Corporation,

  
	
   

  	
  a Texas
  Corporation, a Texas general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott W.
  Amling

  	
   

  
	
   

  	
   

  	
  Scott W. Amling

  
	
   

  	
   

  	
  Regional
  Director

  
							

 

TENANT*:

 

IGN Entertainment, Inc.,
a Delaware corporation

 

	
  By:

  	
  /s/ Michael J. Sheridan

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Michael J. Sheridan

  	
   

  
	
   

  	
  (print name)

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  CFO

  	
   

  
	
   

  	
  (print title)

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Mark Jung

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Mark Jung

  	
   

  
	
   

  	
  (print name)

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
  CEO

  	
   

  
	
   

  	
  (print title)

  	
   

  

 

34

 

*If Tenant is a
corporation, the authorized officers must sign on behalf of the corporation and
indicate the capacity in which they are signing.  The Lease must be executed by the president
or vice president and the secretary or assistant secretary, unless the bylaws
or a resolution of the board of directors shall otherwise provide, in which
event, the bylaws or a certified copy of the resolution, as the case may be,
must be attached to this Lease.

 

35

 

EXHIBIT A

 

FLOOR PLAN

 

[FINAL
APPROVED FLOOR PLAN]

 

36

 

EXHIBIT B

VERIFICATION LETTER

 

IGN Entertainment, Inc.,
a Delaware corporation, (“Tenant”) hereby certifies that it has entered into a
lease with The Realty Associates Fund VI, L.P., a
Delaware limited partnership (“Landlord”) and verifies the following
information as of the                   
day of                                       ,
2004:

 

	
  Address of
  Building

  	
  :

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of
  Rentable Square Feet in Premises

  	
  :

  	
   

  
	
   

  	
   

  	
   

  
	
  Commencement
  Date

  	
  :

  	
   

  
	
   

  	
   

  	
   

  
	
  Lease
  Termination Date

  	
  :

  	
   

  
	
   

  	
   

  	
   

  
	
  Tenant’s
  Percentage Share

  	
  :

  	
   

  
	
   

  	
   

  	
   

  
	
  Initial Base
  Rent

  	
  :

  	
   

  
	
   

  	
   

  	
   

  
	
  Billing Address
  for Tenant

  	
  :

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention

  	
  :

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone Number

  	
  :

  	
  (        )

  
	
   

  	
   

  	
   

  
	
  Federal Tax I.D.
  No.

  	
  :

  	
   

  

 

Tenant acknowledges and
agrees that all tenant improvements Landlord is obligated to make to the
Premises, if any, have been completed to Tenant’s satisfaction, that Tenant has
accepted possession of the Premises, and that as of the date hereof, there
exist no offsets or defenses to the obligations of Tenant under the Lease.

 

	
   

  	
  TENANT

  
	
   

  	
   

  
	
   

  	
  IGN Entertainment, Inc.,
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (print name)

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
  (print title)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (print name)

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
  (print title)

  

 

37

 

EXHIBIT C

 

RULES AND REGULATIONS

GENERAL RULES

 

Tenant shall faithfully
observe and comply with the following Rules and Regulations.

 

1.                                       Tenant
shall not alter any locks or install any new or additional locks or bolts on
any doors or windows of the Premises without obtaining Landlord’s prior written
consent.  Tenant shall bear the cost of
any lock changes or repairs required by Tenant. 
Keys required by Tenant must be obtained from Landlord at a reasonable
cost to be established by Landlord.

 

2.                                       All
doors opening to public corridors shall be kept closed at all times except for
normal ingress and egress to the Premises. 
Tenant shall assume any and all responsibility for protecting the
Premises from theft, robbery and pilferage, which includes keeping doors locked
and other means of entry to the Premises closed.

 

3.                                       Landlord
reserves the right to close and keep locked all entrance and exit doors of the
Project except during the Project’s normal hours of business as defined in section 11.4
of the Lease.  Tenant, its employees and
agents must be sure that the doors to the Project are securely closed and
locked when leaving the Premises if it is after the normal hours of business of
the Project.  Tenant, its employees,
agents or any other persons entering or leaving the Project at any time when it
is so locked, or any time when it is considered to be after normal business hours
for the Project, may be required to sign the Project register.  Access to the Project may be refused unless
the person seeking access has proper identification or has a previously
received authorization for access to the Project.  Landlord and its agents shall in no case be
liable for damages for any error with regard to the admission to or exclusion
from the Project of any person.  In case
of invasion, mob, riot, public excitement, or other commotion, Landlord reserves
the right to prevent access to the Project during the continuance thereof by
any means it deems appropriate for the safety and protection of life and
property.

 

4.                                       Landlord
reserves the right, in Landlord’s sole and absolute discretion, to close or
limit access to the Project and/or the Premises, from time to time, due to the
failure of utilities, due to damage to the Project and/or the Premises, to
ensure the safety of persons or property or due to government order or
directive, and Tenant agrees to immediately comply with any such decision by
Landlord.  If Landlord closes or limits
access to the Project and/or the Premises for the reasons described above,
Landlord’s actions shall not constitute a breach of the Lease.

 

5.                                       No
furniture, freight or equipment of any kind shall be brought into the Project
without Landlord’s prior authorization. 
Tenant shall only move in and out of the Premises at times designated by
Landlord, in Landlord’s sole discretion (e.g., Landlord could require that all
moves in and out of the Premises only occur on weekends or on weekdays between
5:00 p.m. and 11:00 p.m.).  All
moves in and out of the Premises shall be scheduled with Landlord in advance,
on a first come, first served basis.  All
property shall be moved in and out of the Premises using the freight elevator.  Landlord shall have the right, in its sole
discretion, to permit only one tenant to move in or out of the Project at a
time.  When moving equipment, furniture
and other items into and out of the Premises, Tenant shall take whatever
precautions Landlord designates to protect the Project from damage (e.g.,
placing plastic or other protective material on carpets in the common areas and
the Premises).  Landlord shall have the
right to prescribe the weight, size and position of all safes and other heavy
property brought into the Project and also the times and manner of moving the
same in and out of the Project.  Safes
and other heavy objects shall, if considered necessary by Landlord, stand on
supports of such thickness as is necessary to properly distribute the weight,
and Tenant shall be solely responsible for the cost of installing all
supports.  Landlord will not be
responsible for loss of or damage to any such safe or property in any case.  Any damage to any part of the Project, its
contents, occupants or visitors by moving or maintaining any such safe or other
property shall be the sole responsibility and expense of Tenant.

 

6.                                       The
requirements of Tenant will be attended to only upon application at the
management office for the Project or at such office location designated by
Landlord.  Tenant shall not ask employees
of Landlord to do anything outside their regular duties without special
authorization from Landlord.

 

38

 

7.                                       Tenant
shall not disturb, solicit, or canvass any occupant of the Project and shall
cooperate with Landlord and its agents to prevent the same.  Tenant, its employees and agents shall not
loiter in or on the entrances, corridors, sidewalks, lobbies, halls, stairways,
elevators, or any Common Areas for the purpose of smoking tobacco products or
for any other purpose, nor in any way obstruct such areas, and shall use them
only as a means of ingress and egress for the Premises.  Smoking shall not be permitted in the Common
Areas.

 

8.                                       The
toilet rooms, urinals and wash bowls shall not be used for any purpose other
than that for which they were constructed, and no foreign substance of any kind
whatsoever shall be thrown therein.  The
expense of any breakage, stoppage or damage resulting from the violation
of this rule shall be borne by the tenant who, or whose employees or
agents, shall have caused it.

 

9.                                       Except
for vending machines intended for the sole use of Tenant’s employees and
invitees, no vending machine or machines other than fractional horsepower
office machines shall be installed, maintained or operated upon the Premises
without the written consent of Landlord. 
All vendors or other persons visiting the Premises shall be subject to
the reasonable control of Landlord. 
Tenant shall not permit its vendors or other persons visiting the
Premises to solicit other tenants of the Project.

 

10.                                 Tenant
shall not use or keep in or on the Premises or the Project any kerosene,
gasoline or other inflammable or combustible fluid or material.  Tenant shall not bring into or keep within
the Premises or the Project any animals, birds, bicycles or other vehicles.

 

11.                                 Tenant
shall not use, keep or permit to be used or kept, any foul or noxious gas or
substance in or on the Premises, or permit or allow the Premises to be occupied
or used in a manner offensive or objectionable to Landlord or other occupants
of the Project by reason of noise, odors, or vibrations, or to otherwise
interfere in any way with the use of the Project by other tenants.

 

12.                                 No
cooking shall be done or permitted on the Premises, nor shall the Premises be
used for the storage of merchandise, for loading or for any improper,
objectionable or immoral purposes. 
Notwithstanding the foregoing, Underwriters’ Laboratory approved
equipment and microwave ovens may be used in the Premises for heating food and
brewing coffee, tea, hot chocolate and similar beverages for employees and
visitors of Tenant, provided that such use is in accordance with all applicable
federal, state and city laws, codes, ordinances, rules and regulations;
and provided further that such cooking does not result in odors escaping from
the Premises.

 

13.                                 Landlord
shall have the right to approve where and how telephone wires are to be
introduced to the Premises.  No boring or
cutting for wires shall be allowed without the consent of Landlord.  The location of telephone call boxes and
other office equipment affixed to the Premises shall be subject to the approval
of Landlord.  Other than affixing
artwork, eraser boards and similar items to walls in the Premises, Tenant shall
not mark, drive nails or screws, or drill into the partitions,
woodwork or plaster contained in the Premises or in any way deface the Premises
or any part thereof without Landlord’s prior written consent.  Tenant shall not install any radio or
television antenna, satellite dish, loudspeaker or other device on the roof or
exterior walls of the Project.  Tenant
shall not interfere with broadcasting or reception from or in the Project or
elsewhere.

 

14.                                 Landlord
reserves the right to exclude or expel from the Project any person who, in the
judgment of Landlord, is intoxicated or under the influence of liquor or drugs,
or who shall in any manner do any act in violation of any of these Rules and
Regulations.

 

15.                                 Tenant
shall not waste electricity, water or air conditioning and agrees to cooperate
fully with Landlord to ensure the most effective operation of the Project’s
heating and air conditioning system, and shall refrain from attempting to
adjust any controls.  Tenant shall not
without the prior written consent of Landlord use any method of heating or air
conditioning other than that supplied by Landlord.  Tenant shall not use electric fans or space
heaters in the Premises.

 

16.                                 Tenant
shall store all its trash and garbage within the interior of the Premises.  No material shall be placed in the trash
boxes or receptacles if such material is of such nature that it may not be
disposed of in the ordinary and customary manner of removing and disposing of
trash in the vicinity of the Project without violation of any law or

 

39

 

ordinance
governing such disposal.  All trash,
garbage and refuse disposal shall be made only through entry-ways and elevators
provided for such purposes at such times as Landlord shall designate.

 

17.                                 Tenant
shall comply with all safety, fire protection and evacuation procedures and
regulations established by Landlord or any governmental agency.

 

18.                                 No
awnings or other projection shall be attached to the outside walls or windows
of the Project by Tenant.  No curtains,
blinds, shades or screens shall be attached to or hung in any window or door of
the Premises without the prior written consent of Landlord.  Landlord shall have the right to require Tenant
to use Landlord’s standard curtains or window coverings.  Tenant shall not place any signs in the
windows of the Premises or the Project. 
All electrical ceiling fixtures hung in the Premises must be fluorescent
and/or of a quality, type, design and bulb color approved by Landlord.  Tenant shall abide by Landlord’s regulations
concerning the opening and closing of window coverings which are attached to
the windows in the Premises.  The
skylights, windows, and doors that reflect or admit light and air into the
halls, passageways or other public places in the Project shall not be covered
or obstructed by Tenant, nor shall any bottles, parcels or other articles be
placed on the windowsills.

 

19.                                 Tenant
shall not employ any person or persons other than the janitor of Landlord for
the purpose of cleaning the Premises unless otherwise agreed to in writing by
Landlord.  Except with the prior written
consent of Landlord, no person or persons other than those approved by Landlord
shall be permitted to enter the Project for the purpose of cleaning same.  Landlord shall in no way be responsible to
Tenant for any loss of property on the Premises, however occurring, or for any
damage done to the effects of Tenant or any of its employees or other persons
by the janitor of Landlord.  Landlord
shall not be obligated to notify Tenant of the times at which the janitorial
staff will enter the Premises, and Tenant hereby authorizes the janitorial
staff to enter the Premises at any time, without notice.  Janitor service shall include ordinary
dusting and cleaning by the janitor assigned to such work and shall not include
cleaning of carpets or rugs, except normal vacuuming, or moving of furniture
and other special services.  Window
cleaning shall be done only by Landlord at reasonable intervals and as Landlord
deems necessary.

 

20.                                 Tenant
acknowledges that the local fire department has previously required Landlord to
participate in a fire and emergency preparedness program or may require
Landlord and/or Tenant to participate in such a program in the future.  Tenant agrees to take all actions necessary
to comply with the requirements of such a program including, but not limited
to, designating certain employees as “fire wardens” and requiring them to
attend any necessary classes and meetings and to perform any required
functions.

 

21.                                 Tenant
and its employees shall comply with all federal, state and local recycling
and/or resource conversation laws and shall take all actions requested by
Landlord in order to comply with such laws.  Tenant and its employees shall participate in
any recycling or resource conservation program implemented by Landlord, at
Tenant’s sole expense.

 

PARKING RULES

 

1.                                       Parking
areas shall be used only for parking by vehicles no longer than full size,
passenger automobiles.  Tenant and its
employees shall park automobiles within the lines of the parking spaces.

 

2.                                       Tenant
shall not permit or allow any vehicles that belong to or are controlled by
Tenant or Tenant’s employees, suppliers, shippers, customers, or invitees to be
loaded, unloaded, or parked in areas other than those designated by Landlord
for such activities.  Users of the
parking area will obey all posted signs and park only in the areas designated
for vehicle parking.

 

3.                                       Parking
stickers, parking cards and other identification devices shall be the property
of Landlord and shall be returned to Landlord by the holder thereof upon
termination of the holder’s parking privileges. 
Landlord may require Tenant and each of its employees to give Landlord a
deposit when a parking card or other parking device is issued.  Landlord shall not be obligated to return the
deposit unless and until the parking card or other device is returned to
Landlord.  Tenant will pay such
replacement charges as is reasonably established by Landlord for the loss of
such devices.  Loss or theft of parking
identification stickers or devices from automobiles must be reported to

 

40

 

the
parking operator immediately.  Any
parking identification stickers or devices reported lost or stolen found on any
unauthorized car will be confiscated and the illegal holder will be subject to
prosecution.

 

4.                                       Landlord
reserves the right to relocate all or a part of parking spaces within the
parking area of the Project, and to allocate them between compact and standard
size and tandem spaces, as long as the same complies with applicable laws,
ordinances and regulations.

 

5.                                       Unless
otherwise instructed, every person using the parking area is required to park and
lock his own vehicle.  Landlord will not
be responsible for any damage to vehicles, injury to persons or loss of
property, all of which risks are assumed by the party using the parking area.

 

6.                                       Validation
of visitor parking, if established, will be permissible only by such method or
methods as Landlord may establish at rates determined by Landlord, in Landlord’s
sole discretion.  Only persons visiting
Tenant at the Premises shall be permitted by Tenant to use the Project’s
visitor parking facilities.

 

7.                                       The
maintenance, washing, waxing or cleaning of vehicles in the parking structure
or Common Areas is prohibited.

 

8.                                       Tenant
shall be responsible for seeing that all of its employees, agents and invitees
comply with the applicable parking rules, regulations, laws and
agreements.  Parking area managers or
attendants, if any, are not authorized to make or allow any exceptions to these
Parking Rules and Regulations. 
Landlord reserves the right to terminate parking rights for any person
or entity that willfully refuses to comply with these rules and
regulations.

 

9.                                       Every
driver is required to park his own car. 
Where there are tandem spaces, the first car shall pull all the way to
the front of the space leaving room for a second car to park behind the first car.  The driver parking behind the first car must
leave his key with the parking attendant. 
Failure to do so shall subject the driver of the second car to a Fifty
Dollar ($50.00) fine.  Refusal of the
driver to leave his key when parking in a tandem space shall be cause for
termination of the right to park in the parking facilities.  The parking operator, or his employees or
agents, shall be authorized to move cars that are parked in tandem should it be
necessary for the operation of the garage. 
Tenant agrees that all responsibility for damage to cars or the theft of
or from cars is assumed by the driver, and further agrees that Tenant will hold
Landlord harmless for any such damages or theft.

 

10.                                 No
vehicles shall be parked in the parking garage for more than seven consecutive
days.  The parking garage shall only be
used for daily parking and no vehicle or other property shall be stored in a
parking space.

 

11.                                 Any
vehicle parked by Tenant, its employees, contractors or visitors in a reserved
parking space or in any area of the parking area that is not designated for the
parking of such a vehicle may, at Landlord’s option, and without notice or
demand, be towed away by any towing company selected by Landlord, and the cost
of such towing shall be paid for by Tenant and/or the driver of said vehicle.

 

12.                                 At
Landlord’s request, Tenant shall provide Landlord with a list which includes
the name of each person using the parking facilities based on Tenant’s parking
rights under this Lease and the license plate number of the vehicle being used
by that person.  Tenant shall provide
Landlord with an updated list within five (5) days after any part of the
list becomes inaccurate.

 

Landlord reserves the
right at any time to change or rescind any one or more of these Rules and
Regulations, or to make such other and further reasonable Rules and
Regulations as in Landlord’s judgment may from time to time be necessary for
the management, safety, care and cleanliness of the Project, and for the
preservation of good order therein, as well as for the convenience of other
occupants and tenants therein.  Landlord
may waive any one or more of these Rules and Regulations for the benefit
of any particular tenant, but no such waiver by Landlord shall be construed as
a waiver of such Rules and Regulations in favor of any other tenant, nor
prevent Landlord from thereafter enforcing any such Rules or Regulations
against any or all tenants of the Project. 
Tenant shall be deemed to have read these Rules and Regulations and
to have agreed to abide by them as a condition of its occupancy of the
Premises.

 

41

 

EXHIBIT D

 

WORK LETTER AGREEMENT

(Build-to-Suit With Space Plan Attached)

 

This Work Letter
Agreement (“Agreement”) is attached to a Standard Office Lease (the “Lease”)
covering certain premises (the “Premises”) more particularly described in Exhibit “A”
attached to the Lease.  In consideration
of the mutual covenants hereinafter contained, Landlord and Tenant hereby agree
as follows:

 

1.                                       TENANT IMPROVEMENT COORDINATOR.  Within three (3) days after the Lease is
executed by Landlord and Tenant, Landlord and Tenant shall each designate in
writing the name of one person who shall be that party’s tenant improvement
representative.  All communication
concerning the tenant improvements shall be directed to the appropriate party’s
tenant improvement representative. 
Tenant shall not have the right or authority to instruct Landlord’s
contractor to take any action.  Any
action Tenant desires Landlord’s contractor to take shall be communicated by
Tenant to Landlord’s tenant improvement representative, and Landlord’s tenant
improvement representative shall give the necessary instructions to the
contractor.

 

2.                                       PLANS AND SPECIFICATIONS.

 

2.1                                 SPACE PLAN.  Attached
hereto as Exhibit 1 and incorporated herein by this reference is a space
plan , construction specifications and construction notes (collectively, the “Space
Plan”) which have been approved by Landlord and Tenant.  The Space Plan describes the improvements
(the “Improvements”) which will be made to the Premises by Landlord.  Except as set forth in the Space Plan,
Landlord shall not be obligated to make any other improvements to the
Premises.  Subject to the requirements of
section 4 below, Tenant shall have the right to request changes to the
Space Plan.  In the event Tenant requests
a change to the Space Plan, Tenant shall pay any increased costs which result
from the change requested by Tenant and any delay in the completion of the
Improvements caused by such changes shall constitute a Tenant Delay (as defined
below).  In the event that Tenant
requests a change to the Space Plan and said change is approved by Landlord,
Tenant shall pay to Landlord the increased costs resulting from the change
within ten (10) days after Landlord bills Tenant for the increased
costs.  Landlord shall have the right to
decline Tenant’s request for a change in the Space Plan if the change is
inconsistent with section 3 or 4.

 

2.2                                 PLANS.  Based on the
approved Space Plan, Landlord shall cause to be prepared detailed plans,
working drawings and specifications (collectively, the “Plans”) for the
construction of the improvements.  The
Plans shall be consistent with the Space Plan and, unless contrary to the Space
Plan, shall incorporate the use of Landlord’s building standard improvements
(the “Standards”).  Tenant acknowledges
that the Space Plan may not comply with applicable codes and government
regulations and that the Plans may require deviations from the Space Plan in order
for Landlord to obtain a building permit. 
The estimated Commencement Date (as defined in section 1.9 of the
Lease) shall be extended for any delays in obtaining a building permit
resulting from the insufficiency of the Space Plan or the Plans or any delays
resulting from changes in the Plans required by the applicable governmental
regulatory agency reviewing the Plans. 
Tenant hereby acknowledges and agrees that Landlord shall have the right
to prepare the Plans in a way that complies with applicable governmental laws
and regulations, even if the Plans deviate from the general specifications of
the Space Plan.  Tenant acknowledges that
it will be responsible for paying the cost of making modifications to the Plans
and obtaining required governmental approvals and building permits if said
costs result from changes requested by Tenant, and any delay in the completion
of the Improvements caused by such changes shall constitute a Tenant
Delay.  In the event that Tenant requests
a change to the Plans and said change is approved by Landlord, Tenant shall pay
to Landlord the increased costs resulting from the change within ten (10) days
after Landlord bills Tenant for the increased costs.

 

2.3                                 TENANTS’ COSTS. 
Notwithstanding anything to the contrary contained in this Agreement, if
the Space Plan specifically provides that any item set forth on the Space Plan
shall be paid for by Tenant, the cost of said item shall be paid by Tenant to
Landlord before Landlord’s contractor commences construction of the Improvements.  In addition, the cost of computer or
telephone wiring or any cost of purchasing furniture, fixtures or equipment
(collectively, “FF&E”), shall be paid by Tenant, at Tenant’s sole
expense.  References to or depictions of
FF&E on the Space Plan or the Plans shall not be interpreted to obligate
Landlord to pay costs or expenses associated with the purchase or installation
of FF&E.

 

42

 

3.                                       SPECIFICATIONS FOR BUILDING STANDARD IMPROVEMENTS.  The Standards are attached hereto as Exhibit 2.  In addition, attached hereto as Exhibit 3
are certain above standard requirements that will be incorporated into the
Improvements (the “Above Standards”).  If
there is a conflict between the Standards and the Above Standards, to the
extent of the conflict, the Above Standards shall control.

 

4.                                       GROUNDS FOR DISAPPROVAL. 
Tenant may request deviations from the Standards provided that the
deviations (“Non-Standards”) shall not be of lesser quality than the
Standards.  Landlord shall not be
required to approve any Non-Standards that are not acceptable to Landlord, in
Landlord’s sole and absolute discretion.

 

5.                                       CONSTRUCTION OF IMPROVEMENTS.

 

5.1                                 CONSTRUCTION.  As soon
as possible following the approval of the Plans, Landlord shall instruct its
contractor to commence construction of the Improvements.

 

5.2                                 COMPLETION.  Landlord
shall endeavor to cause the contractor to substantially complete construction
of the Improvements in a diligent manner, but Landlord shall not be liable for
any loss or damage as a result of delays in construction or delivery of
possession of the Premises.

 

6.                                       COMMENCEMENT DATE. 
The Commencement Date under the Lease shall be governed by section 3
of the Lease.  However, any delay beyond
the estimated Commencement Date (as defined in section 1.9 of the Lease)
in the substantial completion of the Improvements as a result of the following
shall constitute “Tenant Delay”:

 

6.1                                 Tenant’s
request for Non-Standards, whether as to materials or installation, that extend
the time it takes to obtain necessary building permits or other governmental
authorizations or the construction period;

 

6.2                                 Tenant’s
changes in the Space Plan or the Plans after their approval by Landlord if and
to the extent Landlord has advised Tenant at the time of their approval of the
fact that such changes will cause a delay in the completion of the
Improvements; or

 

6.3                                 Any
other act or omission of Tenant constituting a Tenant Delay under the terms of
this Agreement.

 

7.                                       DAMAGES FOR TENANT DELAY. 
Damages for Tenant delay are governed by section 3.3 of the Lease.

 

8.                                       INCORPORATION.  This
Agreement is and shall be incorporated by reference in the Lease, and all of
the terms and conditions of the Lease are and shall be incorporated herein by
this reference.  Capitalized terms
included in this Agreement shall have the same meaning as capitalized terms
included in the Lease.

 

43

 

EXHIBIT 1

 

SPACE PLAN

 

[GRAPHIC OF FLOOR PLAN
WITH SPACE PLAN]

 

44

 

EXHBIT 2

 

(Building Standards)

 

I.                                         INTERIOR
PARTITION

 

a.                                       2-1/2”
- 25 gauge metal studs at 24” on center.

b.                                      5/8”
type ‘X’ gypsum board, one layer at each side of studs.

c.                                       Height:
from floor slab to underside of ceiling (9’-O” A.F.F.).

d.                                      Partition
taped smooth and sanded to receive paint or wall covering.

e.                                       Seismic
bracing per code.

f.                                         Continuous
corner beads with neoprene gasket at exterior glazing mullion.

g.                                      All
exterior corners with corner beads, all exposed edges including top finished
with metal trim.

h.                                      Partition
gypsum board to slab including caulk seal.

 

II.                                     DEMISING
PARTITION

 

a.                                       2-1/2”
- 25 gauge metal studs at 24” on center.

b.                                      5/8”type
‘X’ gypsum board, one layer at each side of studs.

c.                                       Height:
from floor slab to underside of ceiling (9’-0” A.F.F.) with R-19 vertical
insulation blanket above from top of partition to underside of deck above.

d.                                      Partition
taped smooth and sanded to receive paint or wall covering.

e.                                       R-8
bait insulation in wall cavities.

f.                                         Lay
R-19 insulation sound attenuation blanket material, giving 4’-0” of insulation
on both sides of the partition.  Overlap
1” at the seams and seal with 3” quick set tape.

g.                                      Seismic
bracing per code.

h.                                      Continuous
corner beads with neoprene gasket at exterior glazing mullion.

i.                                          All
exterior corners with corner beads, all exposed edges including top finished
with metal trim.

j.                                          Partition
gypsum board to slab including caulk seal.

 

III.                                 ONE-HOUR
RATED SEPARATION PARTITION (Upgrade/Alternate)

 

a.                                       2-1/2”
- 20 gauge metal studs at 24” on center.

b.                                      5/8”
type ‘X’ gypsum board, one layer at each side studs.

c.                                       Height:
From floor slab to underside of structure above.

d.                                      Partition
fire taped smooth and sanded to receive paint or wall covering.

e.                                       R-8
batt insulation in wall cavities.

f.                                         All
exterior corners with corner beads, all exposed edges including top finished
with metal trim.

g.                                      Continuous
corner beads with Neoprene gasket at exterior glazing mullion.

h.                                      Smoke
fire damper at any mechanical duct penetrations.

 

IV.                                 ONE-HOUR
RATED TUNNEL CORRIDOR (Approximately 6’ wide)

 

a.                                       2-1/2”
- 20 gauge metal studs at 24” on center (maximum) to top of tunnel with every
other stud (minimum) running to underside of structure above.  (Protected per item ‘g’
below).

b.                                      2-1/2”
- 20 gauge metal studs at 24” on center (maximum) for tunnel ceiling with
diagonal seismic bracing per code.

b1.                                Alternate
Corridor Ceiling: USG “Shaft Wall” 2-1/2” C-H steel studs @ 24” o.c. Shaft
liner 1 hour rated framed ceiling system with 1” gypsum board panels at top and
5/8” type ‘X’ gypsum board below.

c.                                       5/8”
type ‘X’ gypsum board, one layer at each side of horizontal (as noted) and
vertical studs.

d.                                      Partition
taped and finished smooth and sanded to receive paint or wall covering.

e.                                      All
exterior corners with corner beads, all exposed edges finished with metal trim.

f.                                         2
continuous caulking beads at underside of bottom track.

 

45

 

g.                                      Fire
safing at stud penetration opening and wrapped/taped at every other vertical
stud penetration from top of envelop to underside of deck.

h.                                      R-8
batt insulation in horizontal and vertical cavity (sound attenuation/fire
blanket).

 

V.                                     CORRIDOR
ENTRY DOOR ASSEMBLY

 

a.                                       Door
- 3’-0’ x 8’-10” (full height) x 1-3/4” solid core, 20 minute rated label,
custom grade rift (comb) cut oak veneer with matching stiles.

al.                                    Alternate
Corridor Entry Door: Existing Door, 3’-0” x 8’-10” (full height) x 1 3/” solid
core, 20 minute rated label, quarter sawn or plain slice oak veneer with matching
stiles.

a2.                                 Alternate
Corridor Entry Door: Pair of Doors, 6’-0” x 8’-10” (full height) x 1 %”.  Other characteristics: same as ‘a’.

b.                                      Finish
- to match existing building standard approved finish.

c.                                       Frame
- 3’-0” x 8’-10” (full height), ‘Western Integrated Materials, Inc.,’ 300
Series, 20 minute rated label, (or equal) extruded black anodized aluminum with
snap-in trim section at head and jambs, with black rubber silencer/smoke
gasket.

c1.                                 Alternate
Corridor Entry Door Frame: Existing Frame, 3’-0” x 8’-l0” (full height), “Timely”
pre-finished steel door frame, 20 minute rated label, black painted finish with
snap in trim casings and rubber silencer/smoke gasket.

c2.                                 Alternate
Corridor Entry Door Frame: Pair Door Frame, 6’-0” x 8’-10” (full height), other characteristics: same as ‘c’.

 

VI.                                 INTERIOR
DOOR ASSEMBLY

 

a.                                       Door
- 3’-0’ x 8’-0” x 1-3/4”, solid core, custom grade rift (comb) cut oak veneer
with matching stiles.

a1.                                 Alternate
Interior Door: Existing Door, 3’-0” x 8’-0” or 8’-10” x 1-3/4”, solid core,
quarter sawn or plain slice oak veneer with matching styles.

a2.                                 Alternate
Interior Door: Pair of Doors, 6’-0” x 8’-0” x 1-3/4”, other characteristics:
same as ‘a’.

b.                                      Finish
- to match existing building standard approved finish.

c.                                       Frame
- 3’-0” x 8’-0”, ‘Western Integrated Materials, Inc.,’ 300 Series extruded
black anodized aluminum with snap-in trim section at head and jambs, with
black rubber silencer.

c1.                                 Alternate
Interior Door Frame: Existing Frame, 3’-0” x 8’-0” or 8’-10” “Timely
pre-finished steel door frame, black painted finish with snap on trim casings
and black rubber silencer/smoke gasket.

c2.                                 Alternate
Interior Door Frame: Pair Door Frame, 6’-0” x 8’-0” (full height), other characteristics: same as ‘c’.

 

VII.                             DOOR
HARDWARE (US 26/Polished Chrome)

 

a.                                       Suite Entry
Lockset Double Doors — One Lockset “Schlage” #L9453-03A-625,Two pair
butt/hinges “Hager” #BB-1279-4.5”x4.5”US26, One Door Closer “Norton” #8500-Black,
One Door Stop “BBW” #F8061X-R4-US26, One Threshold “Pemko” #290DV-US28.

al.                                    Alternate
Suite Entry Single Door: Existing Hardware, Characteristics: same as ‘a’.

a2.                                 Alternate
Suite Entry Lockset Pair Doors: Pair Lockset, One lockset “Schlage” #L3453-03A-625,
one pair Automatic Flush Bolts #DCI 942, One Astragal “Pemko” #357SP, Four pair
butt/hinges “Hagar” #BB-1279-4.5” x 4.5” US26, Two Door Closers, “Norton” #8500-Black,
Two Door Stops “BBW” #F8061X-R4-US26, One Threshold “Pemko” #290DV-US28,
coordinator.

b.                                      Suite Interior
Lockset Single Door - One Lockset “Schlage” #L9453-03A-625, Two pair
butt/hinges “Hager” #BB-1279-4.5”x4.5”US26, One Door Stop “BBW” #F8061X-R1-US26.

b1.                                Alternate
Suite Interior Door: Existing Hardware, characteristics same as ‘b’.

c.                                       Suite Interior
Latchset Single Door - One Latchset “Schlage” #L9010-03A-625, Two pair
Butt/hinges “Hager” #1279-4.5”x4.5”US26, One Door stop “BBW” #WC112T-US26.

c1.                                 Alternate
Suite Interior Door: Existing Hardware, characteristics same as ‘c’.

c2.                                 Alternate
Suite Interior Latchset Pair Doors: Pair Latchset, One Latchset “Schlage”
#L9010-03A-625, Four pair butt/hinges “Hagar #1279-4.5x4.5”US26, One Door Stop “BBW”
#WC112T-US26, One Pair Automatic Flush Bolts, #DCI942, One Astragal “Pemko”
#357SP, coordinator.

 

46

 

VIII.                         GLASS
SIDELIGHT ASSMEBLY — OPTIONAL UPGRADE

 

a.                                       Glass:
2’-0” x 8’-0” (match adjacent door height) x 1⁄4” thick, clear, fixed, tempered
glass.

b.                                      Frame:
2’-0” x 8’-0”, “Western Integrated Materials, Inc.” 300 series extruded
black anodized aluminum with snap-in trim sections at head with black rubber
gasket, integral mullion connection to adjacent door with required stiffener.

b1.                                Alternate
Sidelight Frame: 2’-0{“ x 8’-0” “Timely” pre-finished steel window frame, black
painted finish, with snap on trim casings and black rubber gasket.  To match existing door
frame.  Separate
installation from door frame by 8” clear integral mullion connection to
adjacent door where feasible.  T.B.D.

 

IX.                                ACOUSTICAL
CEILING

 

a.                                       “Armstrong,”
silhouette, #7601 Series heavy duty, 24” X 24” X narrow face 9/16” with
1/4 “ reveal, heavy duty ceiling grid system, white, finish.

b.                                      “Armstrong,”
Cirrus ceiling, #589, beveled tegular, 24” X 24” X 5/8” white.

c.                                       New
common grid start point for each floor/building.  Verify field condition at each suite.

 

X.                                    FLOOR
COVERING (to be confirmed)

 

a.                                     Carpet
— Design Weave, Windswept Esq. 30 oz. cut pile carpet installed over
manufacturer recommended 5/16” Nova pad.

b.                                    Vinyl
composition tile — “Armstrong” Imperial Texture Standard Excelon 12”x12”x1/8”
gauge tile.

c.                                     Colors
to be selected by tenant from building standards.

 

XI.                                RUBBER
BASE

 

a.                                       4”
high rubber base “Burke” or equal (where 4” high base previously
existing).  V.I.F.

al.                                    Alternate:
2-1/2 high rubber base “Burke” or equal (where 2-1/2” high base previously
existed).  V.I.F.

b.                                      Straight
carpet base at carpet over pad installation (where no imperfections on existing
remaining walls exist.).  V.I.F.

b1.                                Alternate:
Coved carpet base at carpet over pad installation (where imperfections on
existing remaining walls existing that may ‘telescope’ through straight carpet
base).  V.I.F.

c.                                       Coved
topset base at glue down carpet installation or VCT flooring installation.

d.                                      Colors
to be selected by tenant from building standards.

 

XII.                            PAINTING

 

a.                                       Paint
— one specified primer coat plus two flat finish coats, “Dunn Edwards” flat
interior latex paint

a1.                                 Alternate
Accent Paint: One specified primer coat plus ± two flat finish coats to cover, “Dunn
Edwards” flat interior latex paint

a2.                                 Alternate
(Optional) Paint: Requires skim coat at wall surfaces, one specified primer
coat plus two eggshell finish coats, “Dunn Edwards” eggshell finish interior
latex enamel (optional at restrooms, kitchens).

b.                                      All
interior walls and any gypsum board ceiling soffits.

c.                                       Colors
to be selected by Tenant from building standards.

 

XIII.                        WALLCOVERING
— OPTIONAL UPGRADE

 

a.                                       “Tower”
Sandstorm, stipple type II vinyl wall covering, 53/54” wide.

al.                                    Alternate:
“Versa” Dilino, type II vinyl wall covering, 53/54” wide.

 

47

 

a2.                                 Alternate:
“Maharam” Tek Wall index #395770 100% polyolefin, class A,
fabric wall covering, 54” wide.

b.                                      Boyd
trim BT-200-BA, bright aluminum trim at outside
termination corners.

c.                                       Colors
to be selected by Tenant from standards.

 

XIV.                        WINDOW
COVERINGS

 

a.                                       Existing
window covering; 1” horizontal mini blinds.

b.                                      Color-
existing; dark bronze.

 

XV.                            SIGNAGE
(Through Property Management)

 

a.                                       Building
standard ground floor directory tenant identification/suite number strip.

b.                                      Building
standard tenant identification/suite number sign adjacent to corridor entry
door.

c.                                       Copy/Text
to be provided by Tenant.

 

XVI.                        FLUORESCENT
LIGHT FIXTURES (design by PLH & Associates)

 

a.                                       Light
Fixture- “Lithonia” 2PM3N Paramax 2’ x 4’ x 3” deep 18 cell parabolic aluminum
louver, 3 lamp T-8 fluorescent, with air return feature.  (Matching 2’ x 2’ x 3” deep 9 cell fixture is
also an acceptable alternate for restricted fit areas).  Lamp: F032/741.

b.                                      Seismic
wires per code.

c.                                       Downlight
(optional/upgrade) — “Lithonia” Lighting 6” diameter recessed commercial
compact fluorescent.  AFV
26TRT 6AR LD GEB with clear alzak reflector.  Lamp: CF26DT/E/IN/841.

d.                                      Wall
washer (optional/upgrade) — “Lithonia” Lighting 6” diameter recessed commercial
compact fluorescent.  AFVW
26TRT 6AR LD GEB with clear alzak cone. 
Lamp: CF26DT/E/lN/841.

d1.                                Alternate
Wall washer (optional/upgrade) — “Lithonia” lighting low voltage wall washer,
with clear trim and semi diffused reflector. 
#DLV-ADJ-MR16-4AC-T30-LD-277-TRW, with 50 W.  MR16 lamp and dimmer
switch.

 

XVII.                    EXIT SIGNS
(design by PLH & Associates)

 

a.                                       Exit
light - “Lithonia” Precise Collection” edge lit exits LRP.  Recessed mount, led lamps, white housing,
green letters on white background.  LRP-W-1GW/2GW-120/277-ELNSD

b.                                      Quantity
as required per code.

c.                                     Directional
face and arrows as shown on plan.

 

XVIII. LIGHT SWITCH
ASSEMBLY (design by PLH & Associates)

 

a.                                       “Leviton”
Décora #5600 Series, or equal, double toggle override switch and cover plate
with ceiling mounted motion sensor in open areas.

b.                                      Switches
paired in double gang box per Title 24 Energy requirements.

c.                                       Color:
white.

d.                                      Lighting
sensor controls: Uneco model #SOM-10-2 wall mounted “a,b”
switch sensor for dual level in private offices, rooms and conference, etc.

dl.                                   Alternate
Lighting sensor controls, ceiling mounted:

•                                          One
way motion sensor with switch pack (Novitas #01-100); coverage from 500-900
S.F. (or approved equal by Unenco); (Novitas #01-160); coverage less than 500
S.F.  (or
approved equal by Unenco)

•                                          Two
way motion sensor with switch pack (Novitas #01-110) (or approved equal
by Unenco)

•                                          Two
way corridor motion sensor with switch pack (Novitas #01-190) (or
approved equal by Unenco).

 

48

 

XIX.                       ELECTRICAL
POWER WALL OUTLET (design by PLH & Associates)

 

a.              “Leviton” Decora
#5600 Series, 15 amp, 120 volt, duplex receptacle, and cover plate.

b.             Mounted vertically 18”
A.F.F. to center line or outlet, on interior partitions.

c.              Color: white.

 

XX.                           VOICE/DATA
WALL OUTLET

 

a.              Single gang J-Box or
P-Ring in wall - mounted vertically at 18” A.F.F. to center line of outlet, on
interior partitions.

b.             3/4” metal conduit to
terminate 6” above ceiling line with pull string.

c.              Cover plate,
connector, and Teflon coated plenum rated cable by Tenant’s own voice/data
consultant.

d.             Color: white, to
match building standard.

 

XXI.                       FIRE
SPRINKLERS (Design by Sub-Contractor)

 

a.              Semi-recessed head,
with flush-mounted escutcheon, white finish.

b.             Drop heads from
existing distribution, or relocate as required.

c.              Engineering as
required, quantity as required by code.

d.             Center heads in 2 x 2
ceiling tile.

 

XXII.                   FIRE
EXTINGUISHER

 

a.              Semi-recessed
cabinet, with standard extinguisher.

al.           Alternate: Surface
mounted on wall bracket, with standard extinguisher.

b.             Quantity and signage
as required by code/Fire Marshal.

c.              Finish to match adjacent wall in satin acrylic enamel.

 

XXIII. FIRE LIFE SAFETY
(Design by Proprietary Engineer/Sub-Contractor)

 

a.              Smoke detector;
Color - White

b.             Speaker; Color- White

c.              Strobe; Color -
White

d.             Quantity as required
by code.

 

XXIV. HEATING AND AIR
CONDITIONING DISTRIBUTION (Design by RPM Engineers, Inc.)

 

a.              2’ x 2’ supply air
register, white finish.

b.             2’ x 2’ perforated
return air grilles, white finish.

c.              Smoke Fire Dampers
for use in any fire rated walls and ceilings. 
Size as required for duct opening, or as required
for return air.

 

XXV. BUILT-IN/MILLWORK -
OPTIONAL UPGRADE (Tenant Development)

 

a.              Millwork - cabinets
to be W.I.C. custom standard flush overlay construction with accessible 4” wide
wire pull hardware to match building standard hardware finish.  (Polished Chrome).

b.             Plastic Laminate
Exterior use: Nevamar, Wilsonart, or Formica.

c.              Kortron/Melamine
interiors use: white or black.

 

49

 

XXVI. PLUMBING FIXTURE -
OPTIONAL UPGRADE (Design by RPM Engineers, Inc.)

 

a.              Sinks/faucet
accessible single basin or double basin stainless steel sink, use: Just.  Chrome mixing valve faucet, use Symmetry S-23
or approved equal.

b.             “Hot Aqua” Insta-Hot
water heater, (Model #69-277.) on coffee/lunch room sinks; cold water only at
wet bars in offices/conference rooms.

b1.       Alternate: Chronomite S901/277
on coffee/lunch room sinks; cold water only at wet bars in offices/conference
rooms.

b2.       Alternate: “Hot Aqua”
Insta-Hot water heater.  Mode (Model #69-277) where dishwasher occurs.

c.              Garbage disposal at
sink.  Use Insink-Erator stainless steel
ISE #333 115v.

 

XXVII. APPLIANCES -
OPTIONAL UPGRADE (Tenant development)

 

a.              Under counter
refrigerator - mid level “Whirlpool” or “G.E.”

b.             Dishwasher - mid
level “Askco”, “Whirlpool”, or “G.E.”.

c.              Colors to be
selected by Tenant from standards.

 

NOTE: Items listed on the
above standards are not used for all tenant space build-outs.  Items identified as “alternate” indicating a
variation may occur on this element depending on location (building/floor), or
condition of existing space, or optional elements desired with a specific
tenant.

 

50

 

EXHIBIT 3

 

(Above Standards)

 

The following describes
the above standard tenant improvement construction requirements for IGN/GameSpy
office space:

 

I.                                         WALL
FINISHES

 

	
  A. Provide
  Continuous (Frameless) Dry Erase Wallcovering

  	
  Approx. LF.  292

  
	
  Without Frame Where
  Specified On Plan.

  
	
  Full Height

  	
   

  	
   

  
	
  Manufacturer:

  	
   

  	
  Walltalkers

  
	
  Product:

  	
   

  	
  Erase Rite Er50

  
	
  Color:

  	
   

  	
  White

  
	
  Surface Gloss:

  	
   

  	
  Low

  
	
  Height:

  	
   

  	
  Walltalker material to
  be full height on three walls of conference and related rooms

  
				

 

II. DOORS/SIDELIGHTS

 

A. Tenant Interior
Door Assembly - Single with Integral Sidelight (Office/Med. Conference Rooms)

One 3’-O” x 8’-10” x 1-3/4”
solid core flush, custom grade rift (comb) cut oak veneer with matching stiles
(Bld’g Std.), non-fire rated.  Door frame to be black finish by Western Integrated 300 series.  1’-6” x Full Height
aluminum sidelight by Western Integrated.  Provide clear, tempered glass panel,
thickness per local codes.  Sidelights
shall be 24 inches in width.

 

III. ELECTRICAL

 

LIGHT FIXTURES

 

A. Recessed Indirect/Direct
Fluorescent: 2’x 4’ with (3) 32 watt T-8 lamps.

Mfg: Lightolier model #
CFH2GPW332.  Provide one fixture every 80
SF of office space.  Provide sensors
throughout or connect with building energy management system, if available.  Install per California Title 24 energy
standards.  Provide override switching at
conference rooms.

Approx.NO.  125

 

B. Undercabinet:
Lightolier 1-7/8” low profile under cabinet light fixture - Taskmaster II -
TCU40W 120S0 (or similar).  Approx.NO.  8

 

C. Accent Pendants:
Where Specified On Plan, To Be Mounted As Specified On

	
  Plan. Heights
  May Vary.

  	
   

  
	
  Manufacturer:

  	
  Forecast Lighting

  
	
  Product:

  	
  #F5026-19

  
	
  Style:

  	
  Wishes

  
	
  Finish:

  	
  Black

  
	
  Glass:

  	
  Handcrafted Amber
  Cirrus 1-Med. 75 Watt Approx.NO.  10

  

 

D. Conference Room Pendant

	
  Manufacturer:

  	
  Forecast Lighting

  
	
  Product:

  	
  Linear Perflyte Lp
  Series 8’ Long

  
	
  Style:

  	
  Lp-4 9” Semi-Pert

  
	
  Finish:

  	
  White

  	
  Approx.NO.  2

  

 

51

 

E. Downlight:
Lithonia Lighting 6” diameter recessed commercial compact fluorescent.

AFV-26TRT-6AR-LD-GEB
with clear alzak reflector.  Lamp: CF26DT/EIIN1841 Approx.NO.  30

 

F. Wallwasher:
Lithonia Lighting 6” diameter recessed commercial compact fluorescent.

AFVW-26TRT-6AR-LD-GEB
with clear alzak cone. 
Lamp: CF26DTIEIIN1841 Approx.NO.10

 

FLOOR OUTLETS

 

A. Landlord shall floor
mount electrical and data outlets for boardrooms/conference rooms (adequate
number for size of room).

 

EMON METERS

 

A. Landlord shall pay for
2 Emon meters.

 

IV. HVAC

 

A. Server Room:
Provide 5-Ton, 24-Hr. A/C unit at Server Room, mounted flush in the acoustical
ceiling, located in hallway directly outside Server Room (A/C unit to be
above grid). Provide protective condensation drip pan below. Drain to building
waste or per local code requirement. All water supplies and/or drain lines to
be routed around Server Room. Provide structural and vibration isolation
supports. Redundancy is not required.

 

V. MILLWORK AND PLUMBING

 

A. Coffee
Bar/Equipment/Appliances

Equipment to include
Sink/Faucet single basin stainless steel sink, “Hot Aqua” Insta-Hot water
heater (model #69-277), Garbage Disposer, (2 cold water lines required- one for
ice maker in refrigerators and one for coffee maker). Appliances not included.

 

VI. PAINTING

 

A. Painted walls are to
receive two coats with an eggshell finish, and four colors of accent paint
throughout the space.

 

VII. CEILING PROJECTOR

 

A. Structural support for
one ceiling mounted projector shall be provided.

 

B. Provide ceiling
recessed projection screens (not to exceed 3) with conduit power switch.

 

VII. CARD READER

 

A. Landlord shall provide
one electronic card reader at the main entry door to the Premises to be used to
gain access to the premises.

 

VIII CARPET

 

A. 32 oz carpet to be
agreed to by Landlord and Tenant and not to exceed $22.00 psy in cost.

 

B. Reception/Lobby Desk:
Provide allowance for “U” shaped millwork reception desk constructed of
vertical stain grade veneer exterior and melamine interiors according to WIC
custom grade standards.  Front
transaction counter to be designed with a section of raised 1/2” thick
glass.  Work surface countertop to be
constructed of plastic laminate.  Includes two pedestal files on either end of “U” shaped desk, each
with box/box/file configuration.  Underside of desk to have wire management troughs with grommets to
work surface in three locations. 
Provide

 

52

 

electrical
access for wall mounted power/data feeds per electrical notes per Section VII.  Design to be mutually agreed upon.

 

53

 

Exhibit E

 

Addendum to Standard
Office Lease (the “Lease”)

dated the 12th day of October, 2004 Between

The Realty Associates Fund VI, LP. (“Landlord”) and

1GN Entertainment, Inc. (“Tenant”)

 

It is hereby agreed by
Landlord and Tenant that the provisions of this Addendum are a part of the
Lease.  If there is a conflict between
the terms and conditions of this Addendum and the terms and conditions of the
Lease, the terms and conditions of this Addendum shall control.  Capitalized terms in this Addendum shall have
the same meaning as capitalized terms in the Lease, and, if a Work Letter
Agreement is attached to this Lease, as those terms have been defined in the
Work Letter Agreement.

 

1.                                       Abatement
of Rent.  Landlord hereby agrees to
waive the Base Rent due for the first through the fourth months of the initial
Lease term.  No amounts due to Landlord
under the Lease other than the Base Rent referred to above shall be.

 

2.                                       Option
to Extend.  Landlord hereby grants to
Tenant the option to extend the term of the Lease for one (1) five
(5)-year period (the “Extension Option”) commencing when the initial lease term
expires upon each and all of the following terms and conditions:

 

(a)                                  Tenant
shall give to Landlord on a date which is prior to the date that the option
period would commence (if exercised) by at least two hundred seventy (270)
days, an irrevocable written notice of the exercise of the option to extend the
Lease for said additional term (a “Tenant Extension Notice”), time being of the
essence; provided, however, in the event Tenant shall give written notice of
the exercise of the option to extend the Lease more than two hundred seventy
(270) days prior to the date that the option period would commence (an “Early
Exercise”), the determination of Market Rent for the option period shall
commence on the date that is two hundred seventy (270) days prior to the date
that the option period would commence (the “Determination Date”).  Landlord shall make its initial determination
of Market Rent (as described in the first sentence of Section 2(e) below)
within fifteen (15) days following the Determination Date.  If said notification of the exercise of said
option is not so given and received, this option shall automatically expire.

 

(b)                                 All
of the terms and conditions of the Lease except where specifically modified by
this section shall apply.

 

(c)                                  The
monthly Base Rent payable during the option term shall be the Market Rate on
the date the option term commences.

 

(d)                                 The
term “Market Rate” shall mean the annual amount per rentable square foot that a
willing, comparable renewal tenant would pay and a willing, comparable landlord
of a similar office building in the Irvine/Costa Mesa area would accept at arm’s
length for similar space, giving appropriate consideration to the following
matters: (i) annual rental rates per rentable square foot; (ii) the
type of escalation clauses (including, but without limitation, operating
expense, real estate taxes, and CPI) and the extent of liability under the
escalation clauses (i.e., whether determined on a “net lease” basis or by
increases over a particular base year or base dollar amount); (iii) rent
abatement provisions reflecting free rent and/or no rent during the lease term;
(iv) length of lease term; (v) size and location of premises being
leased; (vi) the amount of any tenant improvement allowance being provided
by landlord’s to similar tenants, (viii) the presence or absence of
leasing commissions and the amount thereof and (viii) other generally
applicable terms and conditions of tenancy for similar space; provided,
however, Tenant shall not be entitled to any tenant improvement or
refurbishment allowance.  The Market Rate
may also designate periodic rental increases, a new Base Year and similar
economic adjustments.  The Market Rate
shall be the Market Rate in effect as of the beginning of the option period,
even though the determination may be made in advance of that date, and the
parties may use recent trends in rental rates in determining the proper Market
Rate as of the beginning of the option period.

 

54

 

(e)                                  If
Tenant exercises the Extension Option, Landlord shall determine the Market Rate
by using its good faith judgment.  Landlord
shall provide Tenant with written notice of such amount within fifteen (15)
days after Tenant exercises its Extension Option.  Tenant shall have fifteen (15) days (“Tenant’s
Review Period”) after receipt of Landlord’s notice of the new rental within which
to accept such rental.  In the event
Tenant fails to accept in writing such rental proposal by Landlord, then such
proposal shall be deemed rejected, and Landlord and Tenant shall attempt to
agree upon such Market Rate, using their best good faith efforts.  If Landlord and Tenant fail to reach
agreement within fifteen (15) days following Tenant’s Review Period (“Outside
Agreement Date”), then each party shall place in a separate sealed envelope
their final proposal as to the Market Rate, and such determination shall be
submitted to arbitration in accordance with subsections (i) through (v) below.  In the event that Landlord fails to timely
generate the initial notice of Landlord’s opinion of the Market Rate, then
Tenant may commence such negotiations by providing the initial notice, in which
event Landlord shall have fifteen (15) days (“Landlord’s Review Period”) after
receipt of Tenant’s notice of the new rental within which to accept such
rental.  In the event Landlord fails to
accept in writing such rental proposed by Tenant, then such proposal shall be
deemed rejected, and Landlord and Tenant shall attempt in good faith to agree
upon such Market Rate, using their best good faith efforts.  If Landlord and Tenant fail to reach
agreement within fifteen (15) days following Landlord’s Review Period (which
shall be, in such event, the “Outside Agreement Date” in lieu of the above
definition of such date), then each party shall place in a separate sealed
envelope their final proposal as to Market Rate, and such determination shall
be submitted to arbitration in accordance with subsections (i) through (v) below.

 

(i) LANDLORD
AND TENANT SHALL MEET WITH EACH OTHER WITHIN FIVE (5) BUSINESS DAYS AFTER
THE OUTSIDE AGREEMENT DATE AND EXCHANGE THEIR SEALED ENVELOPES AND THEN OPEN
SUCH ENVELOPES IN EACH OTHER’S PRESENCE. 
IF LANDLORD AND TENANT DO NOT MUTUALLY AGREE UPON THE MARKET RATE WITHIN
ONE (1) BUSINESS DAY OF THE EXCHANGE AND OPENING OF ENVELOPES, THEN,
W1TH1N TEN (10) BUSINESS DAYS OF THE EXCHANGE AND OPENING OF ENVELOPES,
LANDLORD AND TENANT SHALL AGREE UPON AND JOINTLY APPOINT A SINGLE ARBITRATOR
WHO SHALL BY PROFESSION BE AN INDEPENDENT REAL ESTATE BROKER OR AGENT NOT
ASSOCIATED WITH LANDLORD OR TENANT WHO SHALL HAVE BEEN ACTIVE OVER THE FIVE (5) YEAR
PERIOD ENDING ON THE DATE OF SUCH APPOINTMENT IN THE LEASING OF OFFICE
BUILDINGS SIMILAR TO THE PREMISES IN THE GEOGRAPHICAL AREA OF THE
PREMISES.  NEITHER LANDLORD NOR TENANT
SHALL CONSULT WITH SUCH BROKER OR AGENT AS TO HIS OR HER OPINION AS TO THE
MARKET RATE PRIOR TO THE APPOINTMENT. 
THE DETERMINATION OF THE ARBITRATOR SHALL BE LIMITED SOLELY TO THE ISSUE
OF WHETHER LANDLORD’S OR TENANT’S SUBMITTED MARKET RATE FOR THE PREMISES IS THE
CLOSEST TO THE ACTUAL MARKET RATE FOR THE PREMISES AS DETERMINED BY THE ARBITRATOR,
TAKING INTO ACCOUNT THE REQUIREMENTS FOR DETERMINING MARKET RATE SET FORTH
HEREIN.  SUCH ARBITRATOR MAY HOLD
SUCH HEARINGS AND REQUIRE SUCH BRIEFS AS THE ARBITRATOR, IN HIS OR HER SOLE
DISCRETION, DETERMINES IS NECESSARY.  IN
ADDITION, LANDLORD OR TENANT MAY SUBMIT TO THE ARBITRATOR WITH A COPY TO
THE OTHER PARTY WITHIN FIVE (5) BUSINESS DAYS AFTER THE APPOINTMENT OF THE
ARBITRATOR ANY MARKET DATA AND ADDITIONAL INFORMATION SUCH PARTY DEEMS RELEVANT
TO THE DETERMINATION OF THE MARKET RATE (“RR DATA”), AND THE OTHER PARTY MAY SUBMIT
A REPLY IN WRITING WITHIN FIVE (5) BUSINESS DAYS AFTER RECEIPT OF SUCH RR
DATA.

 

(ii)                                  THE
ARBITRATOR SHALL, WITHIN THIRTY (30) DAYS OF HIS OR HER APPOINTMENT, REACH A
DECISION AS TO WHETHER THE PARTIES SHALL USE LANDLORD’S OR TENANTS SUBMITTED
MARKET RATE AND SHALL NOTEFY LANDLORD AND TENANT OF SUCH DETERMINATION.

 

(iii)                               THE
DECISION OF THE ARBITRATOR SHALL BE FINAL AND BINDING UPON LANDLORD AND TENANT.

 

(iv)                              IF
LANDLORD AND TENANT FAIL TO AGREE UPON AND APPOINT AN ARBITRATOR, THEN THE
APPOINTMENT OF THE ARBITRATOR SHALL BE MADE BY THE PRESIDING JUDGE OF THE
ORANGE COUNTY SUPERIOR COURT, OR, IF HE OR SHE REFUSES TO ACT, BY ANY JUDGE
HAVING JURISDICTION OVER THE PARTIES.

 

55

 

(v)                                 THE
COST OF THE ARBITRATION SHALL BE PAID BY LANDLORD AND TENANT EQUALLY.

 

3.                                       Right
of Refusal.

 

(a)                                  The
Space.  For purposes of this Addendum
section, the “Right of Refusal Space” shall mean any leasable space that
satisfies both of the following criteria: (i) the space is on the second
floor of the Building and (ii) Landlord has elected to market the space
for lease.  This right of refusal shall
be subject to Landlord’s right, in Landlord’s sole discretion, to elect to
renew or extend the lease of any tenant occupying all or part of the Right of
Refusal Space, whether or not such tenant has the legal right or option to
renew or extend its lease.

 

(b)                                 Election
Notice.  In the event that Landlord
makes a bona fide written offer to a prospective tenant to lease all or part of
the Right of Refusal Space (an “Offer”), Landlord shall deliver to Tenant the
Offer (and such delivery shall constitutive a “Right of Refusal Notice”) and
Tenant shall have five (5) business days after receiving the Right of
Refusal Notice to irrevocably elect upon written notice to Landlord (the “Election
Notice”) to lease the Right of Refusal Space that is the subject of the Offer
(but not more or less space than is described in the Offer).  The Right of Refusal Space that is the subject
of the Offer is hereinafter referred to as the “Additional Premises”.  The “Offer” may take the form of a nonbinding
letter of intent containing basic business terms upon which the Additional
Premises would be leased by Landlord to the third party tenant and the offer
shall be executed by Landlord.

 

(c)                                  If
Tenant Does Not Give Election Notice. 
If Tenant does not give Landlord an Election Notice within the five (5) business
day period, time being of the essence, Tenant shall be deemed to have waived its
right to lease the Additional Premises and Landlord may proceed to lease the
Additional Premises to the third party tenant on any terms and conditions
desired by Landlord (whether or not the terms and conditions are similar to
those contained in the Offer).  If Tenant
does not elect to lease such Additional Premises, and Landlord does not enter
into a lease with the third party tenant described in the Offer, Tenant’s right
to lease such Additional Premises pursuant to this Addendum section shall
apply to any later Offer received by Landlord from a new prospective tenant
relating to the Additional Premises.  In
addition, except as otherwise provided below, once the Additional Premises
becomes vacant after the lease to the third party tenant terminates, Tenant’s
right to lease such space pursuant to this Addendum section shall once
again apply to such Additional Premises.

 

(d)                                 If
Tenant Gives An Election Notice.

 

(i)                                     Generally.  If Tenant gives the Election Notice it shall
be irrevocable and Tenant shall lease the Additional Premises on the terms and
conditions set forth in the Offer.  If
the Offer does not include all of the Business Terms (as defined below) or if
the Business Terms are not clear from the Offer, Landlord and Tenant shall
agree on the Business Terms, in each of their sole and absolute discretions,
within ten (10) days after Tenant delivers to Landlord its Election Notice.  “Business Terms” shall mean (i) the rent
payable for the Additional Premises, (ii) except as provided in (ii) below,
the term of the lease of the Additional Premises (Landlord shall have no
obligation to agree to a coterminous term), (iii) the modifications, if
any, to the Additional Premises, (iv) the commencement date for the lease
of the Additional Premises, (v) options to extend, (vi) signage, (vii) parking
rights and (viii) other economic terms. 
If Landlord and Tenant are unable to agree on the Business Terms within
such ten (10) day period, time being of the essence, Tenant’s right to
lease the Additional Premises shall automatically expire and Tenant shall have
no further right to lease the Additional Premises except as provided in (c) above.  Except for the Business Terms, all of the
terms and conditions for the lease of the Additional Premises shall be the same
as the terms and conditions of this Lease.

 

(ii)                                  If
Three or More Years Remain in Lease Term.  If at the time the term of the lease of the
Additional Premises will commence there are three (3) or more years
remaining in the term of the Lease, notwithstanding anything to the contrary
contained in the Offer, the term of the lease of the Additional Premises shall
be coterminous with the term of the Lease. 
If there are not three (3) or more years remaining in the term of
the Lease as of the time the term of the lease of the Additional Premises will
commence, and Tenant has not previously exercised the Extension Option, Tenant
may concurrently with its delivery of the Election Notice to Landlord also
provide Landlord with a Tenant Extension Notice.  If Tenant provides the Tenant Extension
Notice to Landlord, the

 

56

 

Tenant Extension
Notice shall be irrevocable and the term of the lease for the Additional
Premises shall be coterminous with the term of the Lease.  If pursuant to this Addendum section the
term of the lease for the Additional Premises will be less than the term of the
lease of the Additional Premises originally proposed in Landlord’s Offer, then
any tenant improvement costs or allowances and any free rent and similar
concessions included in the original Offer shall be reduced proportionately
based on the reduced term.  For example,
if Landlord’s original Offer proposed a five (5) year lease term, a $25
tenant improvement allowance and five (5) months of free rent, and only
three years remain in the term of the Lease, the term of the lease of the
Additional Premises would be coterminous (i.e., three years), the tenant
improvement allowance would be reduced to $15 and the free rent would be
reduced to three (3) months.

 

(e)                                  Option
Term.  This Right of Refusal shall be
of no force or effect during the term of the Extension Option, and Tenant shall
have no right to exercise its Right of Refusal during the term of the Extension
Option.

 

4.                                       Option
to Terminate.

 

(a)                                  Termination
Date.  Tenant shall have the option
to terminate this Lease (the “Termination Option”) upon not less than one
hundred eighty (180) days advance written notice to Landlord (a “Termination
Notice”) at any time after the last day of the third year of the initial term
of this Lease (I.e., Tenant may give a Termination Notice at any time, but the
Termination Date (as defined below) may not occur prior to the last day of the
third year of the initial term of this Lease). 
The Termination Notice shall be irrevocable and shall include the date
that the Lease will terminate (the “Termination Date”).  This Termination Option shall be of no force
or effect during the term of the Extension Option and Tenant shall have no
right to terminate the Lease pursuant to this Addendum section during the
term of the Extension Option.  The terms
and conditions of section 27 of the Lease shall apply to the Termination
Option.  In addition, the Termination
Option is granted subject to the following terms and conditions:

 

(i)                                     Termination
Payment.  Tenant shall pay to
Landlord concurrently with its delivery to Landlord of the Termination Notice a
cash termination payment (the “Termination Payment”) equal to the sum of the
following amounts:

 

(A)                              The
Base Rent due for the calendar month prior to the month in which the Termination
Date will occur multiplied by three; and

 

(B)                                All
of the Base Rent conditionally waived in accordance with Addendum section 1
above.

 

(C)                                The
unamortized cost of the following amounts calculated as of the Termination
Date.

 

(1)                                  All
brokerage commissions paid or incurred by Landlord in connection with the
initial consummation of this Lease; plus

 

(2)                                  The
cost of all tenant improvement work (and all architectural and space planning
fees associated therewith) paid or incurred by Landlord to finance the
construction of the Improvements (as defined in the Work Letter Agreement
attached to the Lease as Exhibit ”D”)); plus

 

The amounts described in
(C)(1), (2) and (3) above shall be amortized on a straight line basis
over the initial five (5) year term of the Lease.  If Tenant fails to deliver the Termination
Payment to Landlord with the Tenant Notice, time being of the essence, Tenant’s
written notice to Landlord electing to exercise the Termination Option shall be
void and of no force and effect.  Tenant
shall have the right to provide a written request to Landlord specifying a
proposed Termination Date, and requesting Landlord’s calculation of the
Termination Payment, and within thirty (30) days after receiving Tenant’s
request, Landlord shall provide Tenant with its calculation of the Termination
Payment as of the proposed Termination Date.

 

57

 

(b)                                 Terms.  If Tenant timely and properly exercises a
Termination Option, (i) Base Rent, Tenant’s Share of Operating Expense
increases and all other charges payable under this Lease shall be paid through
and apportioned as of the Termination Date (in addition to payment by Tenant of
the applicable Termination Payment); (ii) neither party shall have any
rights, liabilities, or obligations under this Lease for the period accruing
after the Termination Date, except those which, by the provisions of this
Lease, expressly survive the expiration or termination of the term of this
Lease; (iii) Tenant shall surrender and vacate the Premises and deliver
possession thereof to Landlord on or before the Termination Date in the
condition required under this Lease for surrender of the Premises; and (iv) at
Landlord’s option, Tenant shall enter into a written agreement reflecting the
termination of this Lease upon the terms provided for herein, which agreement
shall be executed within thirty (30) days after Tenant exercises the
Termination Option.

 

5.                                       Parking.  Notwithstanding anything to the contrary
contained in the Lease, Tenant shall pay the following amounts for its
unreserved parking spaces during the initial term of the Lease:

 

(a)                                  During
the first six (6) months of the initial term of this Lease, Tenant shall
not be obligated to pay for the use of its unreserved parking spaces;

 

(b)                                 From
month seven (7) through month thirty (30) of the initial term of this
Lease, Tenant shall pay Thirty Five and 00/100 Dollars ($35.00) for each
unreserved parking space; and

 

(c)                                  From
month thirty one (31) through month sixty (60) of the initial term of this
Lease, Tenant shall pay Forty and 00/100 Dollars ($40.00) for each unreserved
parking space.

 

During the term of the
Extension Option, Tenant shall pay a fair market parking rate for its unreserved
parking spaces, and the fair market parking rate shall be determined as part of
the Market Rate analysis.

 

6.                                       Operating
Expenses - List of Exclusions.  Notwithstanding
anything to the contrary contained in the Lease, Operating Expenses shall be
defined so as to exclude the following:

 

(a)                                  all
costs associated with any disputes pertaining to Landlord’s ownership of the
Building or with any mortgagee and costs of selling, syndicating, financing,
mortgaging, hypothecating any of Landlord’s interest in the Building;

 

(b)                                 all
costs (including permit, license and inspection fees) incurred in order to
construct tenant improvements in space to be occupied exclusively by tenants or
in renovating or redecorating vacant space which is intended for the exclusive
occupancy by tenants in the future, including the cost of alterations or
improvements to the Premises;

 

(c)                                  leasing
commissions and attorney fees incurred in connection with leasing space in the
Project to tenants;

 

(d)                                 all
reserves, including reserves for equipment or capital replacement;

 

(e)                                  depreciation
and amortization of the Building;

 

(f)                                    interest
on debt or amortization payments on any mortgages or deeds of trust or any
other debt instrument encumbering the Building;

 

(g)                                 bad
debt loss, rent loss, or reserves for bad debt or rent loss;

 

(h)                                 costs
of services, supplies or other materials provided by Landlord or its affiliates
to the extent that the cost of such services, supplies or materials exceeds the
fair market value of such services, supplies or materials;

 

(i)                                     advertising
and promotional costs;

 

58

 

(j)                                     Landlord’s
income taxes, inheritance taxes and estate taxes;

 

(k)                                  the
cost of repairs or other work undertaken by reason of fire, windstorm or other
casualty to the extent that Landlord actually receives reimbursement for such
costs from insurance proceeds (except that insurance deductibles shall be
included in Operating Expenses subject to the limitation contained in section 4.2(c) of
the Lease);

 

(l)                                     costs
of repair or replacement for any item covered by a warranty if the cost of
repair is actually reimbursed to Landlord by the entity providing the warranty;

 

(m)                               costs
for which Landlord actually receives reimbursement by its insurance carrier or
by any tenant’s insurance carrier;

 

(n)                                 fines,
costs, penalties or interest resulting from the negligence or willful
misconduct of the Landlord;

 

(o)                                 rental
payments and any related costs pursuant to any ground lease of land underlying
all or any portion of the Building;

 

(p)                                 costs,
fees, dues, contributions or similar expenses for political or charitable
organizations (Operating Expenses shall include the cost of fees and dues of
industry associations);

 

(q)                                 costs
of remediating any Hazardous Substance contamination not caused by Tenant;

 

(r)                                    costs,
fines or penalties incurred due to violations by Landlord of any governmental
rule, regulation or order; and

 

(s)                                  rental
payments and related costs for capital equipment and improvements which, if not
rented, would be excluded as a capital improvement or replacement

 

If, in any calendar year
following the Base Year, (a “Subsequent Year”), a new expense item (e.g.
earthquake insurance) is included in Operating Expenses which was not included
in the Base Year Operating Expenses, then the cost of such new item shall be
added to the Base Year Operating Expenses for purposes of determining the
Operating Expenses payable under this Lease for such Subsequent Year.  During each Subsequent Year, the same amount
shall continue to be included in the computation of Operating Expenses for the
Base Year, resulting in each such Subsequent Year Operating Expenses only
including the increase in the cost of such new item over the Base Year, as so
adjusted.  However, if in any Subsequent
Year thereafter, such new item is not included in Operating Expenses, no such
addition shall be made to Base Year Operating Expenses.  Conversely, as reasonably determined by
Landlord, when an expense item that was originally included in the Base Year
Operating Expenses is, in any Subsequent Year, no longer included in Operating
Expenses, then the cost of such item shall be deleted from the Base Year
Operating Expenses for purposes of determining the Operating Expenses payable
under this Lease for such Subsequent Year. 
The same amount shall continue to be deleted from the Base Year
Operating Expenses for each Subsequent Year thereafter that the item is not
included.  However, if such expense item
is again included in the Operating Expenses for any Subsequent Year, then the
amount of said expense item currently incurred shall be included in the Base
Year Operating Expenses by being added back to the Base Year Operating Expenses.  All taxes that can be paid by Landlord in
installments shall be paid by Landlord in the maximum number of installments
permitted by law and not included in Real Property Taxes except in the year in
which the assessment is actually paid.  Landlord
shall not collect or be entitled to collect Operating Expenses from all of its
tenants in an amount which is in excess of 100% of the Operating Expenses
actually paid by Landlord in connection with the operation of the Project
(inclusive of any management fee whether paid to Landlord or a third party),
and Landlord will not “double recover” any Operating Expenses.

 

7.                                       Satellite
Dish.  Concurrently with the
execution of this Lease, Landlord and Tenant shall execute the Satellite Dish
License Agreement attached hereto as Exhibit 1.

 

59

 

8.                                       Real
Property Taxes — Prop. 8 Reduction.  If
Landlord believes that the base year market value of the Project for purposes
of Proposition 13 is greater than the market value of the Project in any
subsequent year, Landlord shall have the right, but not the obligation, to
request that the Project be assessed for real property taxes based on its
current market value (hereinafter a “Prop. 8 Reduction Request”).  If Landlord elects to file a Prop. 8
Reduction Request for the 2005 tax year, and Landlord is successful in obtaining
a reduction in the market value of the Project for the 2005 tax year, any tax
savings realized by Landlord in the 2005 tax year shall not reduce Base Year
Real Property Taxes, and Base Year Real Property Taxes shall be the Real
Property Taxes that would have been assessed against the Project had no Prop. 8
Reduction occurred in the 2005 tax year.

 

9.                                       Holdover
Rent Payments.

 

(a)                                  Definitions.  The following definitions shall apply to this
Addendum section:

 

(i)                                     “Existing
Landlord” shall mean the landlord from whom tenant currently leases office
space, and whose space will be vacated by Tenant so it can occupy the Premises.

 

(ii)                                  “Existing
Lease” shall mean Tenant’s current written lease with the Existing Landlord.

 

(iii)                               “Delay
Conditions” shall mean the occurrence of all of the following on any one day
after January 14, 2005: (A) Landlord has failed to tender possession
of the Premises to Tenant in accordance with section 3.4 of the Lease, (B) the
delay in delivering possession of the Premises to Tenant is due to Landlord
Delay and (C) the Existing Landlord is charging a Daily Holdover Rent
Percentage.

 

(iv)                              A “Landlord
Delay Day” shall mean every day between January 14, 2005 and the date that
Landlord tenders possession of the Premises to Tenant in accordance with section 3.4
of the Lease that all of the Delay Conditions exist.

 

(v)                                 “Tenant’s
Existing Daily Base Rent” shall mean the base rent payable by Tenant under the
Existing Lease for the Existing Premises for the last month of the term of the
Existing Lease (i.e., the last month before Tenant begins holding over in the
Existing Premises) divided by thirty.

 

(vi)                              “Daily
Holdover Rent Percentage” shall mean the percentage increase on any given day
between Tenant’s Existing Daily Base Rent and the daily base rent charged by
the Existing Landlord for each day after January 14, 2005 that the Delay
Conditions exist.  No Daily Holdover Rent
Percentage shall be deemed to exist for any day after January 14, 2005
where the Existing Landlord does not charge Tenant base rent that is greater
than Tenant’s Existing Daily Base Rent.  Tenant
shall use good faith efforts to minimize the payment by Tenant of holdover rent
in excess of the Tenant’s Existing Daily Base Rent.  No Daily Holdover Rent Percentage shall be deemed
to exist unless Tenant provides Landlord with a written invoice from the
Existing Landlord showing the increased base rent the Existing Landlord has
legally charged to Tenant during the applicable period.  For example, if Tenant’s Existing Daily Base
Rent is $100 per day, and due to Tenant’s holdover the Existing Landlord has
increased the base rent payable by Tenant on January 17, 2005 to $150 per
day, the Daily Holdover Rent Percentage for January 17, 2005 would be 50%.

 

(vii)                           “Landlord
Delay” shall mean delay in completion of the Improvements (as defined in the
Work Letter Agreement) beyond January 14, 2004 due to delays in obtaining
building permits for the Improvements or delays resulting from the actions or
inactions of Landlord, its space planners, architects and contractors.  Landlord Delay shall not include Tenant Delay
(as defined in the Work Letter Agreement or Lease).

 

(vii) An “Early
Occupancy Day” shall mean one day each time the Daily Holdover Rent Percentage
equals 100%.  For example, assume that January 17
through January 31 are all Landlord Delay Days and that the Daily Holdover
Rent Percentage for all of these days is 50%. 
In this event, the total number of Early Occupancy Days between January 17
though January 31 would be 7 (15 days times .5 equals 7.5 - there shall be
no partial Early Occupancy Days).

 

60

 

(b)                                 Early
Occupancy.  For each Early Occupancy
Day, the term of the of the Lease shall be extended for one (1) day and
Tenant shall be entitled to occupy the Premises for one day without payment of
Base Rent.  The Early Occupancy Days
shall be the first days of the term of the Lease.  For example, assume that the Landlord tenders
possession of the Premises to Tenant in accordance with section 3.4 of the
Lease on February 1, 2005, that eight of the days between January 16,
2005 and February 1, 2005 are Landlord Delay Days and that the Daily
Holdover Rent Percentage for all of the Landlord Delay Days is 25%.  In this event, Tenant would be entitled to
two Early Occupancy Days, the term of the Lease would be extended for two days
and Tenant would not be obligated to pay Base Rent to Landlord for the first
two days of Tenant’s occupancy of the Premises. 
After the Early Occupancy Days, Tenant would continue to be entitled to
receive all of the abated Base Rent described in Addendum section 1 above.  Except for Tenant’s obligation to pay Base
Rent, all of the terms of the Lease shall apply to Tenant’s use of the Premises
during each Early Occupancy Day.

 

(c)                                  Amendment
of Lease.  At Landlord’s option,
within ten (10) days after written request by Landlord, Tenant shall enter
into a written amendment of the Lease to memorialize the extension of the term
of the Lease as provided above.

 

IN WITNESS WHEREOF, the
parties hereto have respectively executed this Addendum.

 

LANDLORD:

 

The Realty Associates
Fund VI, L.P., a Delaware limited partnership

 

	
  By:

  	
  Realty Associates Fund
  VI LLC, a Massachusetts

  
	
   

  	
  limited liability
  company, general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Realty Associates
  Advisors LLC, a Delaware

  
	
   

  	
   

  	
  limited liability
  company, manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Realty
  Associates Advisors Trust, a

  
	
   

  	
   

  	
   

  	
  Massachusetts
  business trust, sole member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Scott W.
  Amling

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Scott W. Amling

  
	
   

  	
   

  	
   

  	
   

  	
  Regional
  Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Realty
  Associates Fund VI Texas Corporation,

  
	
   

  	
  a Texas
  Corporation, a Texas general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott W.
  Amling

  	
   

  
	
   

  	
   

  	
  Scott W. Amling

  
	
   

  	
   

  	
  Regional
  Director

  
							

 

TENANT*:

 

IGN Entertainment, Inc.,
a Delaware corporation

 

	
  By:

  	
  /s/ Michael J. Sheridan

  	
   

  
	
   

  	
   

  
	
   

  	
  Michael J. Sheridan

  	
   

  
	
   

  	
   

  	
  (print name)

  
	
   

  	
   

  
	
  Its:

  	
  CFO

  	
   

  
	
   

  	
   

  	
  (print title)

  
				

 

61

 

	
  By:

  	
  /s/ Mark Jung

  	
   

  
	
   

  	
   

  
	
   

  	
  Mark Jung

  	
   

  
	
   

  	
   

  	
  (print name)

  
	
   

  	
   

  
	
  Its:

  	
  CEO

  	
   

  
	
   

  	
   

  	
  (print title)

  
				

 

 

*If Tenant is a
corporation, the authorized officers must sign on behalf of the corporation and
indicate the capacity in which they are signing.  The Lease must be executed by the president
or vice president and the secretary or assistant secretary, unless the bylaws
or a resolution of the board of directors shall otherwise provide, in which
event, the bylaws or a certified copy of the resolution, as the case may be,
must be attached to this Lease.

 

62

 

Exhibit 1

 

LICENSE AGREEMENT 

(Satellite Dish)

 

THIS LICENSE AGREEMENT
(the “Agreement”) is entered into as of this                  
day of
                    ,
2004, by and between The Realty Associates Fund VI, L.P., a Delaware limited
partnership, (the “Licensor”) and IGN Entertainment, Inc., a Delaware
corporation (the “Licensee”).

 

RECITALS

 

A.                                   Licensee
has entered into that certain Standard Office Lease (“Lease”) with Licensor for
the lease of Suite 200 (the “Premises”), 3070 Bristol Street, Costa Mesa,
California (the “Building”).

 

B.                                     Licensee
desires to obtain the nonexclusive license to use a portion of the roof of the
Building (the “Roof’) to operate a satellite dish to receive radio
transmissions.  Licensor is willing to
permit Licensee to place a satellite dish on the Roof on the terms and
conditions set forth below.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Licensor and Licensee agree as follows:

 

1.                                       Satellite
Dish.  Except as otherwise provided
herein, Licensee shall have the nonexclusive right to install, operate and
maintain on the Roof, at Licensee’s sole cost and expense, a satellite dish
(the “Dish”) complying with all of the specifications approved by Licensor, in
Licensor’s sole discretion (the “Specifications”).  The Dish shall not require a source of
electricity or other power on the Roof for its operation.  The right granted to Licensee hereunder is a
nonexclusive license and is not a lease.

 

2.                                       Term.  Licensee’s right to operate and maintain the
Dish shall automatically expire and terminate on the date that the term of the
Lease expires or is otherwise terminated.

 

3.                                       Use.  Licensee shall only use the Dish to receive
radio transmissions for Licensee’s use in the Premises.  No person or entity other than Licensee shall
have the right to use or receive transmissions from the Dish.

 

4.                                       Location.  The Dish shall be installed at a location on
the Roof selected by Licensor, in Licensor’s sole discretion, and Licensor
shall have the right to require Licensee to relocate the Dish from time to
time, at Licensee’s sole cost and expense. 
Licensor makes no representation or warranty to Licensee that the
location selected by Licensor on the Roof, from time to time, will be
satisfactory to Licensee or will permit Licensee to receive the radio
transmissions it desires to receive.

 

5.                                       Licensor’s
Approval.  Prior to installing the
Dish, Licensee shall submit to Licensor plans and specifications for the
installation of the Dish prepared by a licensed engineer reasonably satisfactory
to Licensor (the “Plans”).  The Plans
shall be consistent with the Specifications and shall show the location of the
Dish on the Roof, the location and type of all cabling, the way the Dish will
be placed on the Roof and any other information requested by Licensor, in
Licensor’s sole discretion.  Licensor
shall have the right to require that the Dish not be visible from any location
on the ground and/or that the Dish be screened in a manner satisfactory to
Licensor, in Licensor’s sole discretion. 
Licensor shall have the right to employ an engineer or other consultant
to review the Plans and the reasonable cost of such engineer or consultant
shall be paid by Licensee to Licensor within ten (10) days after demand.  Licensor may approve or reject all or part of
the Plans, in Licensor’ reasonable discretion. 
After Licensor has approved the Plans and prior to installing the Dish
and any cabling, Licensee shall obtain and provide to Licensor: (a) all
required governmental and quasi-governmental permits, licenses, special zoning
variances and authorizations, all of which Licensee shall obtain at its own
cost and expense; and (b) a policy or certificate of insurance evidencing
such insurance coverage as may be required by Licensor as hereinafter provided.  Any alteration or modification of the Dish or
any associated cabling after the Plans have been approved shall require
Licensor’s prior written approval, which may be given or withheld in Licensor’s
sole discretion.

 

63

 

6.                                       Installation.

 

(a)                                  Installation
and maintenance of the Dish shall be performed solely by contractors approved
by Licensor, in its reasonable discretion. 
Licensor’s may require Licensee to use a roofing contractor selected by
Licensor to perform any work that could damage, penetrate or alter the Roof and
an electrician selected by Licensor to install any cabling on the Roof or
through the Building to the Premises.  Licensor
may require anyone going on the Roof to execute in advance a liability waiver
satisfactory to Licensor, in Licensor’s sole discretion.

 

(b)                                 Licensee
shall bear all costs and expenses incurred in connection with the installation,
operation and maintenance of the Dish.  In
addition, Licensee shall reimburse Licensor for all of its reasonable
out-of-pocket costs incurred in reviewing Licensee’s Plans and monitoring the
installation, maintenance and removal of the Dish.  Licensee shall pay, when due, all claims for
labor or materials furnished or alleged to have been furnished to or for
Licensee which claims are or may be secured by any mechanic’s or materialmen’s
lien against the Premises, or any interest therein.

 

7.                                       Roof
Repairs.  Licensee acknowledges that
Licensor may decide, in its sole discretion, from time to time, to repair or
replace the Roof (hereinafter “Roof Repairs”). 
If Licensor elects to make Roof Repairs, Licensee shall, upon Licensor’s
request, temporarily remove the Dish so that the Roof Repairs may be completed.  The cost of removing and reinstalling the Dish
shall be paid by Licensee, at Licensee’s sole cost and expense.  Licensor shall not be liable to Licensee for
any damages, lost profits or other costs or expenses incurred by Licensee as
the result of the Roof Repairs.

 

8.                                       Removal
of the Dish.  On the termination of
this Agreement, Licensee shall remove the Dish and all associated cabling and
repair any damages caused thereby, at Licensee’s sole cost and expense.  If Licensee does not remove the Dish on or
before the date this Agreement terminates, Licensee hereby authorizes Licensor
to remove and dispose of the Dish and associated cabling, and Licensee shall
immediately reimburse Licensor for the costs and expenses it incurs in removing
the Dish and associated cabling and repairing any damages caused thereby.  Licensee agrees that Licensor may dispose of
the Dish and any associated cabling, in any manner selected by Licensor.

 

9.                                       Insurance.  Licensee shall maintain during the term of
this Agreement such liability and property damage insurance covering the Dish,
and such insurance shall comply with the requirements of Section 8.1 of
the Lease.

 

10.                                 Indemnity
and Licensor Liability.  Licensee’s
indemnity in Section 21 of the Lease shall apply to Licensee’s
installation, repair, use and removal of the Dish.

 

11.                                 Liability
Under Lease.  Licensee’s liability
under the Lease is not contingent or conditioned upon its ability to use the
Dish and Licensee shall continue to be obligated to perform all of its
obligations under the Lease if Licensor fails to perform its obligations under
this Agreement or for some other reason Licensee is unable to use the Dish.

 

12.                                 Transfer
of License.  This Agreement and the
license granted hereunder may not be transferred or assigned by Licensee to any
person or entity other than an Affiliate (as defined in the Addendum to the
Lease) and any such transfer or assignment shall be void.

 

13.                                 Default
by Licensee.  If Licensee fails to
perform any of its obligations under this Agreement within ten (10) days
after receiving written notice of such failure from Licensor, Licensor shall
have the right, in addition to all other rights and remedies it may have under
applicable law, to immediately terminate this Agreement.

 

14.                                 Default
by Licensor.  Licensor shall not be
in default under this Agreement unless Licensor fails to perform obligations
required of Licensor within thirty (30) days after written notice by Licensee
to Licensor, specifying wherein Licensor has failed to perform such obligation;
provided, however, that if the nature of Licensor’s obligation is such that
more than thirty (30) days are required for its cure, then Licensor shall not
be in default if Licensor commences performance within such thirty (30) day
period and thereafter diligently pursues the

 

64

 

same to completion.  Licensee hereby waives its right to recover
consequential damages (including, but not limited to, lost profits) or punitive
damages arising out of a Licensor default.

 

15.                                 Estoppel
Certificate.  Licensee shall from
time to time upon not less than ten (10) days’ prior written notice from
Licensor execute, acknowledge and deliver to Licensor a statement in writing
certifying such information as Licensor may reasonably request.  The failure of Licensee to deliver such a
statement within such time shall constitute a material default of Licensee
hereunder and shall result in the immediate termination of this Agreement.

 

16.                                 Time
of the Essence.  Time shall be of the
essence with respect to Licensee’s obligations hereunder.

 

17.                                 Entire
Agreement.  This Agreement contains
the entire agreement between Licensor and Licensee with respect to the Dish.

 

18.                                 Successors
and Assigns.  Subject to the
limitations contained in section 12 above, the obligations of this
Agreement shall bind and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

 

19.                                 Notices.  All notices Licensor or Licensee desires to
give based on this Agreement shall be given at the addresses and in accordance
with the requirements of the Lease.

 

20.                                 Governing
Law.  This Agreement shall be
construed and enforced in accordance with the laws of the state in which the
Premises is located.

 

21.                                 Recordation.  This Agreement shall not be recorded.

 

22.                                 Severability.  The invalidity of any provision of this
Agreement as determined by a court of competent jurisdiction shall in no way
affect the validity of any other provision hereof.

 

23.                                 Amendments.  This Agreement may be modified in writing
only, signed by the parties in interest at the time of the modification.

 

24.                                 Waivers.  No waiver by Licensor or Licensee of any
provision hereof shall be deemed a waiver of any other provision hereof or of
any subsequent breach by Licensor or Licensee of the same or any other
provision.  Licensor’s consent to, or
approval of, any act shall not be deemed to render unnecessary the obtaining of
Licensor’s consent to or approval of any subsequent act by Licensee.

 

25.                                 Attorneys’
Fees.  If Licensor or Licensee brings
an action to enforce the terms hereof or declare rights hereunder, the
prevailing party in any such action, or appeal thereon, shall be entitled to
its reasonable attorneys’ fees and court costs to be paid by the losing party
as fixed by the court in the same or separate suit, and whether or not such
action is pursued to decision or judgment.

 

26.                                 Authority.  If Licensee is a corporation, trust, limited
liability company, limited liability partnership or general or limited
partnership, Licensee, and each individual executing this Agreement on behalf
of such entity, represents and warrants that such individual is duly authorized
to execute and deliver this Agreement on behalf of said entity, that said
entity is duly authorized to enter into this Agreement, and that this Agreement
is enforceable against said entity in accordance with its terms.  If Licensee is a corporation, trust, limited
liability company, limited liability partnership or other partnership, Licensee
shall deliver to Licensor upon demand evidence of such authority satisfactory
to Licensor.

 

27.                                 Interpretation.  This Agreement shall be interpreted as if it
was prepared by both parties and ambiguities shall not be resolved in favor of
Licensee because all or a portion of this Agreement was prepared by Licensor.

 

65

 

IN WITNESS WHEREOF,
Licensor and Licensee have duly executed this Agreement as of the day and year
first above written.

 

[SIGNATURES TO FOLLOW ON
NEXT PAGE]

 

66

 

LICENSOR:

 

The Realty Associates
Fund VI, L.P., a Delaware limited partnership

 

	
  By:

  	
  Realty Associates Fund
  VI LLC, a Massachusetts

  
	
   

  	
  limited liability
  company, general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Realty Associates
  Advisors LLC, a Delaware

  
	
   

  	
   

  	
  limited liability
  company, manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Realty Associates
  Advisors Trust, a

  
	
   

  	
   

  	
   

  	
  Massachusetts business
  trust, sole member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Scott W. Amling

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Realty Associates Fund
  VI Texas Corporation,

  
	
   

  	
  a Texas Corporation, a
  Texas general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott W. Amling

  	
   

  
								

 

LICENSEE*:

 

IGN Entertainment, Inc.,
a Delaware corporation

 

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (print name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  
	
   

  	
  (print title)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (print name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  
	
   

  	
  (print title)

  	
   

  	
   

  

 

*If Tenant is a
corporation, the authorized officers must sign on behalf of the corporation and
indicate the capacity in which they are signing.  The Lease must be executed by the president
or vice president and the secretary or assistant secretary, unless the bylaws
or a resolution of the board of directors shall otherwise provide, in which
event, the bylaws or a certified copy of the resolution, as the case may be,
must be attached to this Lease.

 

67

 

Exhibit F

 

CONSENT TO
SUBLEASE

 

THIS CONSENT TO SUBLEASE
(“Consent Agreement”) dated as of                        ,
200     , is made with reference to that certain
sublease (the “Sublease”) dated                                         ,
200    , by and between                                              
(“Tenant”), and                                            
(“Sublessee”), and is entered into between the foregoing parties and                                            
(“Landlord”), having an address at                                      ,
California, with reference to the following facts:

 

A.                                   Landlord
and Tenant are the parties to that certain master lease (the “Master Lease”)
dated as of                                                ,
               ,
respecting certain premises (“Premises”) known as Suite(s)                   ,
located in the building (“Building”) located at                                  ,
California.

 

B.                                     Tenant
and Sublessee wish to enter into the Sublease respecting the portion of the
Premises described therein (the “Sublease Premises”).

 

C.                                     The
Master Lease provides that Tenant may not enter into any sublease without
Landlord’s prior written approval.

 

D.                                    Tenant
and Sublessee have herewith presented the fully-executed Sublease to Landlord
for Landlord’s approval, and Landlord is willing to approve the same, upon all
of the terms and conditions hereinafter appearing.

 

NOW, THEREFORE, for good
and valuable consideration, the parties hereto agree as follows:

 

1.                                       Neither
the Master Lease, the Sublease nor this Consent shall be deemed to grant
Sublessee any rights whatsoever against Landlord.  Landlord is not a party to the Sublease and
shall have no liability to Tenant or Sublessee based on or arising out of the
Sublease.  Sublessee hereby acknowledges
and agrees that its sole remedy for any alleged or actual breach of its rights
in connection with the Sublease Premises shall be solely against Tenant.

 

2.                                       This
Consent shall not release Tenant from any existing or future duty, obligation
or liability to Landlord pursuant to the Master Lease, nor shall this Consent
change, modify or amend the Master Lease in any manner.  This consent shall not be deemed Landlord’s
consent to any further subleases.

 

3.                                       (a)                                  In
the event of Master Lease Termination (as hereinafter defined) prior to the termination
of the Sublease, at Landlord’s option, Sublessee agrees to attorn to Landlord
and to recognize Landlord as Sublessee’s landlord under the Sublease, upon the
terms and conditions and at the rental rate specified in the Sublease, and for
the then remaining term of the Sublease, except that Landlord shall not be
bound by any provision of the Sublease which in any way increases Landlord’s
duties, obligations or liabilities to Sublessee beyond those owed to Tenant
under the Master Lease.  Sublessee agrees
to execute and deliver at any time and from time to time, upon request of
Landlord, any instruments which may be necessary or appropriate to evidence
such attornment.  Landlord shall not (i) be
liable to Sublessee for any act, omission or breach of the Sublease by Tenant, (ii) be
subject to any offsets or defenses which Sublessee might have against Tenant, (iii) be
bound by any rent or additional rent which Sublessee might have paid in advance
to Tenant, or (iv) be bound to honor any rights of Sublessee in any
security deposit made with Tenant except to the extent Tenant has turned over
such security deposit to Landlord.  Tenant
hereby agrees that in the event of Master Lease Termination, Tenant shall
immediately pay or transfer to Landlord any security deposit, rent or other
sums then held by Tenant.  Landlord shall
have the right, in Landlord’s sole discretion, to elect not to have Sublessee
attorn to Landlord and, in this event, the Sublease shall be deemed terminated
on the date of Master Lease Termination and, Landlord shall have no obligation
to permit Sublessee to continue to occupy the Premises.

 

(b)                                 “Master
Lease Termination” means any event, which by voluntary or involuntary act or by
operation of law, might cause or permit the Master Lease to be terminated,
expired, be cancelled, be foreclosed against, or otherwise come to an end,
including but not limited to (i) a default by Tenant under the Master
Lease of

 

68

 

any of the terms
or provisions thereof; (ii) foreclosure proceedings brought by the holder
of any mortgage or trust deed to which the Master Lease is subject; or (iii) the
termination of Tenant’s leasehold estate by dispossession proceeding or
otherwise.

 

(c)                                  In
the event of attornment hereunder, Landlord’s liability shall be limited to
matters arising during Landlord’s ownership of the Building, and in the event
that Landlord (or any successor owner) shall convey or dispose of the Building
to another party, such party shall thereupon be and become landlord hereunder
and shall be deemed to have fully assumed and be liable for all obligations of
this Consent or the Sublease to be performed by Landlord which first arise
after the date of conveyance, including the return of any security deposit, and
Sublessee shall attorn to such other party, and Landlord (or such successor
owner) shall, from and after the date of conveyance, be free of all liabilities
and obligations hereunder not then incurred. 
The liability of Landlord to Sublessee for any default by landlord under
this Consent or the Sublease after such attornment, or arising in connection
with Landlord’s operation, management, leasing, repair, renovation, alteration,
or any other matter relating to the Building or the Sublease Premises, shall be
limited to the interest of the Landlord in the Building (and proceeds thereof).  Under no circumstances shall any present or
future general partner of Landlord (if Landlord is a partnership) have any
liability for the performance of Landlord’s obligations under this Consent or
the Sublease.

 

4.                                       In
addition to Landlord’s rights under Section 3 hereof, in the event Tenant
is in default under any of the terms and provisions of the Master Lease,
Landlord may elect to receive directly from Sublessee all sums due or payable
to Tenant by Sublessee pursuant to the Sublease, and upon receipt of Landlord’s
notice, Sublessee shall thereafter pay to Landlord any and all sums becoming
due or payable under the Sublease and Tenant shall receive from Landlord a
corresponding credit for such sums against any payments then due or thereafter
becoming due from Tenant.  Neither the
service of such written notice nor the receipt of such direct payments shall
cause Landlord to assume any of Tenant’s duties, obligations and/or liabilities
under the Sublease, nor shall such event impose upon Landlord the duty or
obligation to honor the Sublease, nor subsequently to accept Sublessee’s attornment
pursuant to Section 3(a) hereof.

 

5.                                       Sublessee
hereby acknowledges that it has read and has knowledge of all of the terms,
provisions, rules and regulations of the Master Lease and agrees not to do
or omit to do anything which would cause Tenant to be in breach of the Master
Lease.  Any such act or omission shall
also constitute a breach of this Consent Agreement and shall entitle Landlord
to recover any damage, loss, cost or expense which it thereby suffers, from
Sublessee, whether or not Landlord proceeds against Tenant.

 

6.                                       In
the event of any litigation between the parties hereto with respect to the
subject matter hereof, the unsuccessful party agrees to pay the successful
party all costs, expenses and reasonable attorney’s fees incurred therein by
the successful party, which shall be included as a part of the judgment therein
rendered.

 

7.                                       This
Consent Agreement shall be binding upon and inure to the benefit of the parties’
respective successors and assigns, subject to all agreements and restrictions
contained in the Master Lease, the Sublease and herein with respect to
subleasing, assignment, or other transfer. 
The agreements contained herein constitute the entire understanding
between the parties with respect to the subject matter hereof, and supersede
all prior agreements, written or oral, inconsistent herewith.  No amendment, modification or change therein
will be effective unless Landlord shall have given its prior written consent
thereto.  This Consent Agreement may be
amended only in writing, signed by all parties hereto.

 

8.                                       Notices
required or desired to be given hereunder shall be effective either upon
personal delivery or three (3) days after deposit in the United States
mail, by certified mail, return receipt requested, addressed to the Landlord at
the address set forth above, or to Tenant or Sublessee at the address of the
Premises or of the Sublease Premises, respectively.  Any party may change its address for notice
by giving notice in the manner hereinabove provided.

 

9.                                       As
a condition to the effectiveness of Landlord’s consent to the Sublease, Tenant
agrees to pay Landlord concurrently with Tenant’s delivery of an executed
counterpart hereof,                                        
Dollars ($                      )
in reimbursement of Landlord’s reasonable attorneys’ fees and administrative
expenses incurred in connection with this Consent Agreement, as additional rent.  Landlord’s acceptance of such fee shall

 

69

 

impose no duty on
Landlord to approve to execute the Sublease. 
Tenant shall also promptly pay Landlord any share of bonus rents, or
other items required under the Master Lease in connection with subleases.

 

10.                                 Notwithstanding
anything to the contrary set forth herein or elsewhere, if the Master Lease was
guaranteed at the time of execution or at any time prior hereto by any
guarantor, then Landlord may at any time hereafter declare all of its
agreements in this Consent Agreement to be null and void and of no force and
effect unless and until Landlord receives a counterpart of this Consent
Agreement indicating approval thereof by any and all such guarantor(s), and
their spouses (if any).

 

11.                                 Tenant
and Sublessee agree to indemnify and hold Landlord harmless from and against
any loss, cost, expense, damage or liability, including reasonable attorneys’
fees, incurred as a result of a claim by any person or entity (i) that it
is entitled to a commission, finder’s fee or like payment in connection with
the Sublease or (ii) relating to or arising out of the Sublease or any
related agreements or dealings.

 

12.                                 Tenant
agrees to hold any and all payments due under the Sublease as a trust fund to
be applied first to the satisfaction of all of Tenant’s obligations under the
Master Lease and hereunder before using any part thereof for any other purpose.

 

IN WITNESS WHEREOF, the
following parties have executed this Consent to Sublease as of the date first
above written.

 

	
   

  	
  TENANT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
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  SUBLESSEE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
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70

 

ASSIGNMENT AGREEMENT

 

THIS ASSIGNMENT AGREEMENT
(“Agreement”) is made and entered into as of the                       
day of                                 
200     , ,by and among                                       
(“Assignor”),                                                        
(“Assignee”), and                                            
(“Landlord”), with reference to the following facts and circumstances:

 

A.                                   Landlord
and Assignor are the landlord and tenant, respectively, under that certain
Standard Industrial Lease (the “Lease”). 
The Lease provides for Assignor’s lease of certain premises (the “Premises”)
consisting of approximately         square
feet of space located at                                            ,
California.

 

B.                                     Assignor
desires to assign to Assignee all its right, title and interest in and to the
Lease.  The Lease provides that Assignor
may not assign the Lease without the prior written consent of Landlord, and
Landlord is willing to consent to said assignment on the terms and conditions
of this Agreement.

 

NOW, THEREFORE, for good
and valuable consideration, the parties hereto agree as follows:

 

1.                                       Assignment.  Effective on                                   ,
200     (the “Effective Date”), Assignor hereby assigns,
sells, transfers and conveys to Assignee all of Assignor’s right, title and
interest in and to the Lease and the Premises, including, without limitation,
any prepaid rents and security deposits under the Lease.

 

2.                                       Acceptance.  Effective on the Effective Date, Assignee
hereby accepts said assignment, sale, transfer and conveyance of the Lease and
the Premises, and Assignee hereby covenants and agrees, for the benefit of
Landlord and Assignor, to pay all rent and other sums payable by Assignor under
the Lease from and after the Effective Date, and to keep, perform and be bound
by all of the terms, covenants and conditions required to be performed by
Assignor under the Lease from and after the Effective Date.

 

3.                                       Consent.  Landlord hereby consents to said assignment
and assumption on the following terms and conditions (which terms and
conditions are hereby approved by Assignor and Assignee by virtue of their
execution of this Agreement):

 

(a)                                  Assignor
shall remain liable for the payment and performance of all obligations of the
tenant under the Lease, including, without limitation, the payment of all rent
and other sums specified therein;

 

(b)                                 Nothing
contained in this Agreement shall be construed to modify or amend the Lease in
any manner or be deemed a waiver by Landlord of any terms or conditions of the
Lease, including, without limitation, Landlord’s right to approve any
subsequent assignment or subletting of the Lease or Premises; and

 

(c)                                  Assignor
shall, concurrently with its delivery of an executed copy of this Agreement,
pay the reasonable attorneys’ fees and costs incurred by Landlord in connection
with this Agreement.

 

4.                                       Acknowledgment
of No Defaults.  Assignor and
Assignee acknowledge and agree that the Lease is in full force and effect and
has not been amended or modified in any respect, that Landlord is not in breach
or default in the performance of any of its obligations under the Lease, and
that there is no fact or circumstance which, with the giving of notice or the
passage of time or both, would constitute such a breach or default.

 

5.                                       Representation
and Warranty.  Assignor and Assignee
hereby represent and warrant to Landlord that the Premises will be used for
purposes permitted by the Lease subsequent to the assignment and that no “Transfer
Premium” (as that term is defined in section 16.6 of the Lease) will be
payable by Assignee or earned by Assignor in connection with the assignment.  The foregoing representation and warranty
shall survive the assignment and the execution and delivery of this Agreement.

 

6.                                       Consent
of Guarantors.  Notwithstanding
anything to the contrary set forth in this Agreement, if the Lease was
guaranteed at the time of execution or at any time prior to this Agreement by
any guarantor, then Landlord’s consent to the assignment shall be null and void
and of no force and effect unless Landlord receives a

 

71

 

counterpart of
this Agreement indicating approval thereof by any and all such guarantors and
their spouses, if any, in form and substance satisfactory to Landlord, to be
delivered concurrently with Assignor’s execution of this Agreement.

 

7.                                       Waivers.  To the extent applicable, Assignor hereby
waives its right to assert any defense to its liability under the Lease based
on (a) Landlord’s failure to make any demand for performance or to give a
notice of nonperformance to Assignor; (b) any defense based upon an
election of remedies by Landlord under the Lease, including any election which
destroys or impairs any right of subrogation, reimbursement or contribution
which Assignor may have; and (c) any rights or benefits in favor of
Assignor under Sections 2809, 2810, 2815, 2819, 2839, 2845, 2848, 2849 or 2850
of the California Civil Code, or any amendment to any of the foregoing statutes.  If all or any portion of the tenant’s
obligations under the Lease are paid or performed, Assignor’s liability shall
continue and remain in full force and effect in the event that all or any part
of such payment or performance is subsequently avoided or recovered from
Landlord as a preference, fraudulent transfer or otherwise.

 

8.                                       Notices.  All notices required or permitted to be given
to the tenant under the Lease shall be given in accordance with the terms of section       
to Assignee at the following address:

 

 

 

 

 

9.                                       Governing
Law and Attorneys’ Fees.  This
Agreement shall be governed by and construed and enforced in accordance with
the laws of the State of California (other than its rules and laws
relating to choice of law), with venue in Los Angeles County, California.  If any party hereto commences an action
against any other to enforce any of the terms hereof or to obtain damages for
any alleged breach of any of the terms hereof, the losing party or parties
agree to pay the prevailing party or parties all costs, expenses and reasonable
attorneys’ fees incurred therein by the prevailing party or parties, which
amount shall be included as part of the judgment therein rendered.

 

10.                                 Preparation
of Agreement.  Assignor and Assignee
acknowledge and agree that Landlord has caused this Agreement to be prepared
solely for Landlord’s benefit and has not undertaken to prepare this Agreement
in a manner that addresses the legal or other concerns of Assignor and/or
Assignee.  Landlord makes no
representation or warranty to Assignee or Assignor concerning the legal effect
of this Agreement or that this Agreement accurately reflects Assignor’s and Assignee’s
agreement concerning the assignment of the Lease.  Assignor and Assignee acknowledge that they
have been given the opportunity to have this Agreement reviewed by their
respective legal counsel, and that they are solely responsible for (a) determining
if this Agreement accurately reflects their agreement concerning the assignment
of the Lease and (b) evaluating the legal and tax ramifications of
entering into this Agreement.  If
Landlord’s legal counsel assisted in the preparation of this Agreement,
Landlord’s legal counsel represents Landlord only, has not provided any legal
advice to Assignor or Assignee and makes no representation to Assignor or
Assignee concerning the legal effect of this Agreement.

 

11.                                 Miscellaneous.  This Agreement shall be binding upon and
inure to the benefit of the parties respective successors and assigns, subject
to all restrictions contained in the Lease or this Agreement with respect to
assignment, subleasing or other transfer. 
The agreements contained herein constitute the entire understanding
between the parties with respect to the subject matter hereof, and supersede
all prior agreements, written or oral, which are inconsistent herewith.  No amendment, modification or change herein
will be effective unless Landlord shall have given its prior written consent
thereto.  This Agreement may be amended
only in writing, signed by all parties hereto.

 

72

 

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

 

	
   

  	
  ASSIGNOR

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
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  ASSIGNEE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
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  LANDLORD

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
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73

 

FIRST
AMENDMENT TO LEASE

 

This
First Amendment to Lease (“First Amendment”)
is entered into as of this 28th day of January, 2005 by and between The Realty
Associates Fund VI, L.P., a Delaware limited partnership (“Landlord”),
and IGN Entertainment, Inc., a Delaware corporation (“Tenant”),
with reference to the following recitals.

 

RECITALS:

 

A.                                   On
or about October 12, 2004, Landlord and Tenant entered into a Standard Office
Lease (the “Lease”) for that certain premises
commonly known as Suite 200 (the “Original Premises”),
3070 Bristol Street, Costa Mesa, California (the “Building”).

 

B.                                     Tenant
now desires to lease from Landlord the space described in Exhibit A
attached hereto (the “Expansion Space”).  The Expansion Space is comprised of
approximately 6,669 rentable square feet of space.

 

C.                                     Landlord
and Tenant wish to amend the Lease on the terms and conditions set forth below.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto agree as follows:

 

1.                                       Commencement
Date of Lease.  Landlord delivered
the Original Premises to Tenant on January 28, 2005 in the condition
required by section 3.4 of the Original Lease.  Notwithstanding anything to the contrary
contained in the Lease, the Commencement Date (as defined in section 3.1
of the Lease) shall be February 1, 2005, and Tenant shall have the right
to occupy the Original Premises without payment of any Base Rent from
January 28, 2005 through January 31, 2005.

 

2.                                       Term
of Lease.  Notwithstanding anything
to the contrary contained in the Lease, the term of the lease of the Original
Premises shall commence on February 1, 2005 and shall end on January 31,
2010.

 

3.                                       Definition
of Premises.  On the date Landlord
delivers possession of the Expansion Space to Tenant with the Improvements (as
defined in the Work Letter Agreement attached hereto) substantially completed
(the “Expansion Date”), the Original Premises
shall include the Expansion Space.  From
and after the Expansion Date, all references in the Lease to the “Premises”
shall mean the Original Premises and the Expansion Space.  The Improvements shall be deemed
“substantially’ completed when the Improvements have been completed except for
minor punch-list items or defects which can be completed or remedied after
Tenant occupies the Expansion Space without causing substantial interference
with Tenant’s use of the Expansion Space.

 

4.                                       Term
of Lease of Expansion Space. 
Tenant’s lease of the Expansion Space shall be coterminous with Tenant’s
Lease of the Original Premises and shall commence on the Expansion Date and
shall end on January 31, 2010. 
Addendum section 2 of the Original Lease shall apply to the
Original Premises and the Expansion Space.

 

 

5.                                       Base
Rent.  Tenant shall pay the following
Base Rent for the Original Premises and the Expansion Space:

 

	
  Applicable Period

  	
   

  	
  Monthly Base Rent

  for

  Original Premises

  	
   

  	
  Monthly Base Rent for

  Expansion Space

  	
   

  	
  Total Monthly Base

  Rent

  	
   

  
	
  February 1, 2005 - May 31, 2005

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
  June 1, 2005 - June 30, 2005

  	
   

  	
  $

  	
  24,159.15

  	
   

  	
  $

  	
  12,671.10

  	
   

  	
  $

  	
  36,830.25

  	
   

  
	
  July 1, 2005 - January 31, 2006

  	
   

  	
  $

  	
  26,843.50

  	
   

  	
  $

  	
  12,671.10

  	
   

  	
  $

  	
  39,514.60

  	
   

  
	
  February 1, 2006 - January 31,
  2007

  	
   

  	
  $

  	
  27,569.00

  	
   

  	
  $

  	
  13,004.55

  	
   

  	
  $

  	
  40,573.55

  	
   

  
	
  February 1, 2007 - January 31,
  2008

  	
   

  	
  $

  	
  28,294.50

  	
   

  	
  $

  	
  13,338.00

  	
   

  	
  $

  	
  41,632.50

  	
   

  
	
  February 1, 2008 - January 31,
  2009

  	
   

  	
  $

  	
  29,020.00

  	
   

  	
  $

  	
  13,671.45

  	
   

  	
  $

  	
  42,691.45

  	
   

  
	
  February 1, 2009 - January 31,
  2010

  	
   

  	
  $

  	
  29,745.50

  	
   

  	
  $

  	
  14,004.90

  	
   

  	
  $

  	
  43,750.40

  	
   

  

 

6.                                       Abatement
of Rent.

 

(a)                                  Original
Premises.  Addendum section 1 of
the Original Lease is hereby deleted in its entirety.

 

(b)                                 Expansion
Space.  Tenant shall not be obligated
to pay any Base Rent for the Expansion Space for the first two and one-half
months following the Expansion Date.  For
example, assume that the Expansion Date occurs on April 1, 2005.  In this event, notwithstanding anything to
the contrary contained in the chart set forth above, Tenant would not be
obligated to pay any Base Rent for the Expansion Space through June 15,
2005, and Tenant would begin paying Base Rent for the Expansion Space
commencing June 16, 2005.

 

7.                                       Tenant’s
Share.  From and after the Expansion
Date, Tenant’s Share (as defined in section 4.2(a) of the Lease)
shall be adjusted to reflect the addition of the Expansion Space.

 

8.                                       Improvements.  Landlord shall improve the Expansion Space in
accordance with the Work Letter Agreement attached hereto as Exhibit B
(the “Work Letter Agreement”).  Subject to the completion of the Improvements
(as defined in the Work Letter Agreement), Tenant accepts the Expansion Space
in its “as is” condition.

 

9.                                       Parking.  From and after the Expansion Date, Tenant
shall have the right to lease twenty two (22) additional unreserved parking
spaces (the “Additional Spaces”) from Landlord at the monthly parking rates
specified in Addendum section 5 of the Lease.

 

10.                                 Advance
Rent.  Pursuant to section 1.11,
Tenant has previously paid to Landlord $26,843.50 in advance Base Rent (the “Existing Advance Rent”). 
Concurrently with Tenant’s

 

 

execution of this
First Amendment, Tenant shall pay to Landlord an additional $12,671.10 of
advance Base Rent (the “Additional Advance Rent”).  Notwithstanding anything to the contrary
contained in the Lease, the Existing Advance Rent and the Additional Advance
Rent shall be applied to the payment of the Base Rent due under the Lease for
the month of June 2005.

 

11.                                 Security
Deposit.  Concurrently with Tenant’s
execution of this First Amendment, Tenant shall provide to Landlord $15,405.39
as an additional security deposit (the “Additional Deposit”).  The Additional Deposit will be added to
Tenant’s existing security deposit in the amount of $32,720.05, and from and
after the date Landlord receives the Additional Deposit, the total security
deposit held by Landlord will be $48,125.44 (the “Total
Deposit”).  The Total Deposit
shall be held by Landlord in accordance with section 5 of the Lease.

 

12.                                 Option
to Terminate.  Section 4 of the
Addendum to the Lease is hereby deleted in its entirety.

 

(a)                                  Termination
Date.  Tenant shall have the option
to terminate the Lease, as hereby amended, (the “Termination
Option”) upon not less than one hundred eighty (180) days advance
written notice to Landlord (a “Termination Notice”)
at any time after the last day of the third year of the initial term of the
Lease (I.e., Tenant may give a Termination Notice at any time, but the
Termination Date (as defined below) may not occur prior to the last day of the
third year of the initial term of the Lease). 
The Termination Notice shall be irrevocable and shall include the date
that the Lease will terminate (the “Termination Date”).  This Termination Option shall be of no force
or effect during the term of the Extension Option (as defined in section 2
of the Addendum to the Lease) and Tenant shall have no right to terminate the
Lease pursuant to this section during the term of the Extension
Option.  The terms and conditions of
section 27 of the Lease shall apply to the Termination Option.  In addition, the Termination Option is
granted subject to the following terms and conditions:

 

(i)                                     Termination
Payment.  Tenant shall pay to
Landlord concurrently with its delivery to Landlord of the Termination Notice a
cash termination payment (the “Termination Payment”)
equal to the sum of the following amounts:

 

(A)                              The
Base Rent due for the calendar month prior to the month in which the
Termination Date will occur multiplied by three; plus

 

(B)                                One
Hundred Thirty Nine Thousand Fifty One and 75/100 Dollars ($139,051.75); plus

 

(C)                                The
unamortized cost of the following amounts calculated as of the Termination
Date:

 

(1)                                  All
brokerage commissions paid or incurred by Landlord in connection with the Lease
and this First Amendment; plus

 

(2)                                  The
cost of all tenant improvement work (and all architectural and space planning
fees associated therewith) paid or incurred by Landlord to finance the
construction of the improvements described in the Work Letter Agreement
attached

 

 

to the Lease as
Exhibit “D” and to finance the construction of the improvements described
in the Work Letter Agreement attached to this First Amendment as
Exhibit B.

 

The amounts described in (C)(1) and (2) above shall be
amortized on a straight line basis over the initial five (5) year term of
the Lease.  For example, if the amounts
described in (C)(1) and (2) were $500,000 and the Termination Date
was the last day of the third year of the initial term, the unamortized portion
of the amounts described in (C)(1) and (2) above that would be
payable to Landlord would be $200,000. 
If Tenant fails to deliver the Termination Payment to Landlord with the
Tenant Notice, time being of the essence, Tenant’s written notice to Landlord
electing to exercise the Termination Option shall be void and of no force and
effect.  Tenant shall have the right to
provide a written request to Landlord specifying a proposed Termination Date,
and requesting Landlord’s calculation of the Termination Payment, and within
thirty (30) days after receiving Tenant’s request, Landlord shall provide
Tenant with its calculation of the Termination Payment as of the proposed
Termination Date.

 

(b)                                 Terms.  If Tenant timely and properly exercises a
Termination Option, (i) Base Rent, Tenant’s Share of Operating Expense
increases and all other charges payable under the Lease shall be paid through
and apportioned as of the Termination Date (in addition to payment by Tenant of
the applicable Termination Payment); (ii) neither party shall have any rights,
liabilities, or obligations under the Lease for the period accruing after the
Termination Date, except those which, by the provisions of the Lease, expressly
survive the expiration or termination of the term of the Lease;
(iii) Tenant shall surrender and vacate the Premises and deliver
possession thereof to Landlord on or before the Termination Date in the
condition required under the Lease for surrender of the Premises; and
(iv) at Landlord’s option, Tenant shall enter into a written agreement
reflecting the termination of the Lease upon the terms provided for herein,
which agreement shall be executed within thirty (30) days after Tenant
exercises the Termination Option.

 

13.                                 Right
of First Refusal.  Section 3 of
the Addendum of the Lease is hereby deleted in its entirety.

 

14.                                 Holdover
Rent.  Section  9 of the
Addendum of the Lease is hereby deleted in its entirety.

 

15.                                 Recapture.  Section 12.7 of the Original Lease is
hereby amended by substituting “7,500” in the second sentence of
section 12.7 with “10,750”.

 

16.                                 Brokers.  Tenant and Landlord each represent and
warrant to the other that neither has had any dealings or entered into any
agreements with any person, entity, broker or finder other than NAI Capital
Commercial (Brian Luft and Carla Lindstrom) (“Tenant’s
Broker”) and Orion Property Partners (Robert Thagard) (“Landlord’s Broker”) in connection with the negotiation of
this First Amendment, and no other broker, person, or entity is entitled to any
commission or finder’s fee in connection with the negotiation of this First
Amendment, and Tenant and Landlord each agree to indemnify, defend and hold the
other harmless from and against any claims, damages, costs, expenses,
attorneys’ fees or liability for compensation or charges which may be claimed
by any such unnamed broker, finder or other similar party by reason of any
dealings, actions or agreements of the indemnifying party.

 

 

17.                                 Conflict.  If there is a conflict between the terms and
conditions of this First Amendment and the terms and conditions of the Lease,
the terms and conditions of this First Amendment shall control.  Except as modified by this First Amendment,
the terms and conditions of the Lease shall remain in full force and effect.  Capitalized terms included in this First
Amendment shall have the same meaning as capitalized terms in the Lease unless
otherwise defined herein.

 

18.                                 Authority.  The persons executing this First Amendment on
behalf of the parties hereto represent and warrant that they have the authority
to execute this First Amendment on behalf of said parties and that said parties
have authority to enter into this First Amendment.

 

19.                                 Confidentiality.  Tenant acknowledges and agrees that the terms
of this First Amendment are confidential and constitute proprietary information
of Landlord.  Disclosure of the terms
hereof could adversely affect the ability of Landlord to negotiate other leases
with respect to the Project and may impair Landlord’s relationship with other
tenants of the Project.  Tenant agrees
that it and its partners, officers, directors, employees, brokers, and
attorneys, if any, shall not disclose the terms and conditions of this First
Amendment to any other person or entity without the prior written consent of
Landlord which may be given or withheld by Landlord, in Landlord’s sole
discretion.  It is understood and agreed
that damages alone would be an inadequate remedy for the breach of this
provision by Tenant, and Landlord shall also have the right to seek specific
performance of this provision and to seek injunctive relief to prevent its
breach or continued breach. 
Notwithstanding anything to the contrary contained herein, Tenant shall
have the right to disclose this First Amendment and its terms to its attorneys,
accountants, auditors and lenders, and in connection with any governmental
filing wherein this First Amendment is deemed to be material.

 

20.                                 Counterparts.  This First Amendment may be executed in
counterparts.  Each counterpart shall be
deemed an original, and all counterparts shall be deemed the same instrument
with the same effect as if all parties hereto had signed the same signature
page.

 

 

IN
WITNESS WHEREOF, the parties hereby execute this First Amendment as of the date
first written above.

 

LANDLORD:

 

The Realty Associates Fund VI, L.P., a Delaware limited partnership

 

	
  By:

  	
  Realty Associates Fund VI LLC, a Massachusetts

  limited liability company, general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Realty Associates Advisors LLC, a Delaware

  limited liability company, manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Realty Associates Advisors Trust, a

  Massachusetts business trust, sole member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
  /s/ Scott W. Amling

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Regional Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Realty Associates Fund VI Texas Corporation,

  a Texas corporation, general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Scott W. Amling

  	
   

  
	
   

  	
   

  	
   

  	
  Regional Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TENANT*:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  IGN Entertainment, Inc., a Delaware corporation

  
	
   

  	
   

  
	
  By:

  	
  /s/ Mike Sheridan

  	
   

  
	
   

  	
   

  
	
   

  	
  Mike Sheridan

  	
   

  
	
   

  	
  (print name)

  	
   

  
	
   

  	
   

  
	
  Its:

  	
  CFO

  	
   

  
	
   

  	
  (print Title

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Mark Jung

  	
   

  
	
   

  	
   

  
	
   

  	
  Mark Jung

  	
   

  
	
   

  	
  (print name)

  	
   

  
	
   

  	
   

  
	
  Its:

  	
  CEO

  	
   

  
	
   

  	
  (print title)

  	
   

  
									

 

* “Authorized
officers must sign on behalf of the corporation and indicate the capacity in
which they are signing.  The amendment
must be executed by the president or vice president and the secretary or
assistant secretary, unless the bylaws or a resolution of the board of
directors shall otherwise provide, in which event, the bylaws or a certified
copy of the resolution, as the case may be, must be attached to this amendment.

 

 

EXHIBIT A

 

EXPANSION
SPACE

 

[Floorplan
Diagram of Expansion Space]

 

 

EXHIBIT B

 

WORK LETTER
AGREEMENT

(Build-to-Suit With Plans Attached)

 

This
Work Letter Agreement (“Agreement”) is
attached to a First Amendment to Lease (the “Amendment”)
covering certain space (the “Expansion Space”)
more particularly described in Exhibit “A” attached to the Amendment.  In consideration of the mutual covenants
hereinafter contained, Landlord and Tenant hereby agree as follows:

 

1.                                      TENANT IMPROVEMENT COORDINATOR.  Within three (3) days after the
Amendment is executed by Landlord and Tenant, Landlord and Tenant shall each
designate in writing the name of one person who shall be that party’s tenant
improvement representative.  All
communication concerning the tenant improvements shall be directed to the
appropriate party’s tenant improvement representative.  Tenant shall not have the right or authority
to instruct Landlord’s contractor to take any action.  Any action Tenant desires Landlord’s
contractor to take shall be communicated by Tenant to Landlord’s tenant
improvement representative, and Landlord’s tenant improvement representative
shall give the necessary instructions to the contractor.

 

2.                                      PLANS AND SPECIFICATIONS.

 

2.1                               PLANS.  Attached
hereto as Exhibit 1 and incorporated herein by this reference are plans,
specifications and construction notes (collectively, the “Plans”) which have
been approved by Landlord and Tenant. 
The Plans describe the improvements (the “Improvements”) which will be
made to the Expansion Space by Landlord. 
Except as set forth in the Plans, Landlord shall not be obligated to
make any other improvements to the Expansion Space.  Subject to Landlord’s approval, which shall
not be unreasonably withheld, Tenant shall have the right to request changes to
the Plans.  In the event Tenant requests
a change to the Plans, Tenant shall pay any increased costs which result from
the change requested by Tenant, and any delay in the completion of the
Improvements resulting from such change shall constitute Tenant Delay.  In the event that Tenant requests a change to
the Plans and said change is approved by Landlord, Tenant shall pay to Landlord
the increased costs resulting from the change within ten (10) days after
Landlord bills Tenant for the increased costs. 
Section 3.3 of the Lease shall apply to Tenant Delays in the
completion of the Improvements; provided, however, notwithstanding anything to
the contrary contained in section 3.3 of the Lease, the amount payable to
Landlord for each day of Tenant Delay shall be Four Hundred Twenty Two and
37/100 Dollars ($422.37).

 

2.2                               TENANTS’ COSTS. 
The cost of computer or telephone wiring or any cost of purchasing
furniture, fixtures or equipment (collectively, “FF&E”), shall be paid by
Tenant, at Tenant’s sole expense. 
References to or depictions of FF&E on the Space Plan or the Plans
shall not be interpreted to obligate Landlord to pay costs or expenses
associated with the purchase or installation of FF&E.

 

3.                                      Intentionally
deleted.

 

4.                                      Intentionally
deleted.

 

 

5.                                      CONSTRUCTION OF IMPROVEMENTS.

 

5.1                               CONSTRUCTION.  As
soon as possible following the approval of the Plans, Landlord shall instruct
its contractor to commence construction of the Improvements.

 

5.2                               COMPLETION. 
Landlord shall endeavor to cause the contractor to substantially
complete construction of the Improvements in a diligent manner, but Landlord
shall not be liable for any loss or damage as a result of delays in
construction or delivery of possession of the Expansion Space.

 

6.                                      INCORPORATION. 
This Agreement is and shall be incorporated by reference in the
Amendment, and all of the terms and conditions of the Amendment are and shall
be incorporated herein by this reference. 
Capitalized terms included in this Agreement shall have the same meaning
as capitalized terms included in the Amendment.

 

 

EXHIBIT 1
to Work Letter Agreement

 

PLANS

 

[Floorplan
Diagram of Overall Space]

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