Document:

Exhibit
4.1

 

AMENDMENT TO RIGHTS AGREEMENT

 

THIS
AMENDMENT TO RIGHTS AGREEMENT (this “Amendment”), dated as of March 22,
2010, by and between TECHWELL, INC., a Delaware corporation (the “Company”),
and COMPUTERSHARE TRUST COMPANY, N.A., a federally chartered trust company, in
its capacity as Rights Agent (the “Rights Agent”), is made with
reference to the following facts:

 

A.    The Company and the Rights
Agent entered into that certain Rights Agreement dated as of August 4,
2009 (the “Agreement”)
in order to implement a stockholder rights plan as more fully described
therein.  Terms with initial letters
capitalized that are not otherwise defined herein shall have their respective
meanings as set forth in the Agreement.

 

B.    The Board of Directors of the
Company has determined that it is in the best interests of the Company to enter
into that certain Agreement and Plan of Merger dated as of March 22, 2010
(the “Merger Agreement”), by and among the Company, Intersil
Corporation, a Delaware corporation (“Parent”), and Navajo Merger Sub, Inc.,
a Delaware corporation and an indirect wholly owned subsidiary of Parent (“Purchaser”),
pursuant to which the Company will be acquired by and become a subsidiary of
Parent.

 

C.    Pursuant to the Merger
Agreement, among other things, (i) Purchaser will make a tender offer (the
“Offer”), pursuant to a Tender and Voting Agreement to be entered into
by and among Parent, Purchaser, the Company and certain stockholders of the
Company (collectively, the “Tender Agreements”), to purchase any and all
of the outstanding shares of common stock, par value $0.001 per share, of the
Company and (b) after the consummation of the Offer, Purchaser will merge
with and into the Company, with the Company as the surviving corporation and
continuing as a wholly owned subsidiary of Parent, in accordance with the
General Corporation Law of the State of Delaware.

 

D.    There is not as of the date
hereof any Acquiring Person and no Distribution Date has occurred under the
Agreement.

 

E.     The Company desires to amend
the Agreement to:  (i) to render the
Agreement inapplicable to the Merger Agreement, the Offer, the Merger (as
defined in the Merger Agreement) and the other transactions contemplated
thereby; (ii) ensure that (A) none of Parent, Purchaser nor any of their
Affiliates or Associates will become an Acquiring Person pursuant to the
Agreement and (B) none of a Stock Acquisition Date, a Distribution Date or
a Triggering Event shall occur, in the case of clauses (A) or (B), by
reason of the approval or execution of the Merger Agreement, or the
announcement or consummation of the Offer, the Merger, the Merger Agreement,
the Tender Agreements or the other transactions contemplated thereby; and (iii) provide
that the Final Expiration Date of the Agreement shall occur immediately prior
to the effective time of the Merger.

 

F.     All acts and things necessary
to make this Amendment a valid agreement according to its terms have been done
and performed, and the execution and delivery of this Amendment by the Company
and the Rights Agent have been in all respects authorized by the Company and
the Rights Agent.

 

 

NOW, THEREFORE, pursuant
to Section 27 of the Agreement, the Company and the Rights Agent hereby
amend, effective upon the date hereof, the Agreement as follows:

 

1.     Amendment
of Section 1(a).  The definition
of “Acquiring Person” set forth in Section 1(a) of the Agreement is
amended to add the following sentence at the end thereof:

 

“Notwithstanding anything
in this Agreement to the contrary, none of Intersil Corporation (“Parent”)
or Navajo Merger Sub, Inc. (“Purchaser”), or any of their
respective Affiliates or Associates shall be deemed to be an Acquiring Person
by virtue of any of the following (each such event, an “Exempt Event”): (i) the
approval, execution or delivery of the Agreement and Plan
of Merger dated as of March 22, 2010, by and among Parent, Purchaser and
the Company, as may be amended from time to time (the “Merger Agreement”),
(ii) the tender offer (the “Offer”) by Purchaser for all of the
outstanding Common Stock of the Company as contemplated by the Merger
Agreement, (iii) the consummation of the Offer or the Merger (as defined
in the Merger Agreement) as contemplated by the Merger Agreement, (iv) the
entry by certain stockholders of the Company into Tender and Voting Agreements
by and between each of such stockholders, Purchaser, Parent and the Company
pursuant to the Offer as contemplated by the Merger Agreement, (v) the
consummation of any of the other transactions contemplated in the Merger Agreement,
or (vi) the public announcement of any of the foregoing.”

 

2.     Amendment
of Section 1(g).  The
definition of “Distribution Date” set forth in Section 1(g) of
the Agreement is hereby amended to add the following sentence at the end
thereof:

 

“Notwithstanding anything
in this Agreement to the contrary, the Distribution Date shall not be deemed to
have occurred as a result of any Exempt Event.”

 

3.     Amendment
of Section 1(i).  The definition
of “Final Expiration Date” set forth in Section 1(i) of the Agreement
is hereby amended and restated to read in its entirety as follows:

 

“(i)   “Final Expiration Date” shall mean, for all purposes of
this Agreement, the earliest to occur of: 
(i) Close of Business on August 3, 2019; provided, however,
that if a Distribution Date has not occurred prior thereto, the Final
Expiration Date shall mean the earliest to occur of any of the following if and
to the extent such events occur:  (a) the
Close of Business on the date of the Company’s annual stockholders’ meeting in
2010 in the event that this Agreement is not ratified by the Company’s
stockholders at or prior to such meeting; and (b) the Close of Business on
the date of any Company annual stockholders’ meeting following the meeting in
2010 in the event that at least three successive such meetings shall have
occurred at any time following the meeting in 2010 without this Agreement being
ratified at least once by the Company’s stockholders, as well as the Board,
during the three-year period represented by such meetings (inclusive in such
three-year period, for this purpose, of the date on which the third such
meeting takes place); or (ii) immediately prior to the Effective Time (as
defined in the Merger Agreement).”

 

2

 

4.     Amendment
of Section 1(o).  Section 1(o) of
the Agreement is amended to add the following sentence at the end thereof:

 

“Notwithstanding
anything in this Agreement to the contrary, the Stock Acquisition Date shall
not be deemed to have occurred as a result of any Exempt Event.”

 

5.     Amendment
of Section 1(r).  Section 1(r) of
the Agreement is amended to add the following sentence at the end thereof:

 

“Notwithstanding
anything in this Agreement to the contrary, a Triggering Event shall not be
deemed to have occurred as a result of any Exempt Event.”

 

6.     Amendment
of Section 11(a).  Section 11(a) of
the Agreement is amended to add the following clause (iv):

 

“(iv)        Notwithstanding the
foregoing or anything in this Agreement to the contrary, this Section 11(a) shall
not apply to any Exempt Event, and no Exempt Event shall be deemed to be a Section 11
Event or to cause the Rights to be adjusted or exercisable in accordance with,
or any other action to be taken or obligation to arise pursuant to, this Section 11.”

 

7.     Amendment of Section 13. 
Section 13 of the Agreement is amended to add the following
subsection (e):

 

“(e)         Notwithstanding anything in this
Agreement to the contrary, no Exempt Event shall be deemed to be a Section 13
Event
or to cause the Rights to be adjusted or exercisable in
accordance with, or any other action to be taken or obligation to arise
pursuant to, this Section 13.”

 

8.     Amendment of Section 22. 
Section 22 of the Agreement is amended to add the following language
“in the event that the Rights Agent or one of its Affiliates is not also the
transfer agent for the Company” immediately before the word “to” and after the
word “and” in the first sentence thereof.

 

9.     Amendment to Add Section 36. 
The Agreement is amended to add a new Section 36, which shall read
in its entirety as follows:

 

“36.  Termination and Notice.  Notwithstanding anything to the contrary
contained in this Agreement:  (i) this
Agreement shall terminate and the Rights shall expire and be of no further
force and effect immediately prior to the Effective Time (as defined in the
Merger Agreement); and (ii) no Triggering Event shall be deemed to
occur under this Agreement as a result of (w) the execution of the Merger
Agreement, (x) the Offer, (y) the consummation of the Offer or the
Merger (as defined in the Merger Agreement) or any of the other transactions
contemplated by the Merger Agreement or (z) any other Exempt Event.  The Company shall promptly notify the Rights
Agent in writing upon the occurrence of the Effective Time and, if such
notification is given orally, the Company shall confirm same in writing on or
prior to the Business Day next

 

3

 

following.  Until such notice is received by the Rights
Agent, the Rights Agent may presume conclusively for all purposes that the
Effective Time has not occurred.”

 

10.   Agreement
as Amended.  The term “Agreement” as
used in the Agreement shall be deemed to refer to the Agreement as amended
hereby.  Except as set forth herein, the
Agreement shall remain in full force and effect and otherwise shall be
unaffected hereby.

 

11.   Counterparts.  This Amendment may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.  A signature to
this Amendment transmitted electronically shall have the same authority,
effect, and enforceability as an original signature.

 

12.   Governing
Law.  This Amendment shall be deemed
to be a contract made under the laws of the State of Delaware and for all
purposes shall be governed by and construed in accordance with the laws of such
state applicable to contracts to be made and to be performed entirely within
such state.

 

13.   Severability.  If any term, provision or restriction of this
Amendment is held by a court of competent jurisdiction or other authority to be
invalid, void or unenforceable, the remainder of the terms, provisions or
restriction of this Amendment shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

 

14.   Descriptive
Headings.  Descriptive headings
appear herein for convenience only and shall not control or affect the meaning
or construction of any of the provisions hereof.

 

[Remainder
of the page is blank.]

 

4

 

IN WITNESS WHEREOF, this Amendment is executed as of the date first
written above.

 

 

	
   

  	
   

  	
  TECHWELL, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Mark Voll

  
	
   

  	
   

  	
  Name:

  	
  Mark Voll

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COMPUTERSHARE TRUST COMPANY,
  N.A.,

  
	
   

  	
   

  	
  as Rights Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Kellie Gwinn

  
	
   

  	
   

  	
  Name:

  	
  Kellie Gwinn

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

5Unassociated Document

     

    
      OFFICE
LEASE

       

      THIS
OFFICE LEASE (this “Lease”) is made and
entered into as of the 3rd day of
March, 2010, by and between THE TERRACES, a California limited partnership
(“Landlord”),
and TIX CORPORATION., a Delaware corporation (collectively "Tenant").

       

      
        
          	
                  1.

                	
                  TERMS AND
      DEFINITIONS».

                

        

      

       

      For the
purposes of this Lease, the following terms shall have the following definitions
and meanings:

       

      
        
          	
                	
                  (a) 

                	
                  Address of
      Tenant:

                

        

      

      

      Mitch
Francis

      Tix
Corporation

      12711
Ventura Boulevard, Suite 340

      Studio
City, California 91604

       

      
        
          	
                	
                  (b) 

                	
                  Address of
      Landlord:

                

        

      

      

      The
Terraces

      c/o M.
David Paul & Associates

      100
Wilshire Boulevard, Suite 1600

      Santa
Monica, California 90401

      Attention:  M.
David Paul

       

      
        
          	
                	
                  (c) 

                	
                  Premises:  That
      certain premises commonly known as Suite 340 constituting a portion of the
      third (3rd)
      floor of the "Building"
      located at 12711 Ventura Boulevard, Studio City, California, approximately
      as shown on the floor plan attached hereto as Exhibit A and
      incorporated herein by this
reference.

                

        

      

       

      
        
          	
                	
                  (d) 

                	
                  Premises
      Area:  Approximately three thousand nine hundred seventy (3,970)
      square feet of "Usable Area",
      constituting four thousand four hundred eighty-six
      (4,486)  square feet of "Rentable Area"
      (as such terms are hereinafter
defined).

                

        

      

       

      
        
          	
                	
                  (e) 

                	
                  Term:
      Sixty (60) months commencing June 1, 2010 (the “Commencement
      Date”).

                

        

      

       

      
        
          	
                	
                  (f) 

                	
                  Monthly
      Base Rent:

                

        

      

       

      
        
          	
                  Months

                	 	
                  Base Rent

                	 
	
                  1-12

                	 	$	12,246.78	 
	
                  13-24

                	 	$	12,610.15	 
	
                  25-36

                	 	$	12,984.41	 
	
                  37-48

                	 	$	13,369.91	 
	
                  49-60

                	 	$	13,766.97	 

        

      

      

      *Subject
to conditional abatement of Monthly Base Rent for the second (2nd), third
(3rd) and
eighth (8th) months
of the Term, as provided in Section 5(a)
below.

       

      
        
          	
                	
                  (g) 

                	
                  Tenant's
      Percentage:  6.55%.

                

        

      

       

      
        
          	
                	
                  (h) 

                	
                  Base
      Year:  2010.

                

        

      

       

      
        
          	
                	
                  (i) 

                	
                  Security
      Deposit:  $13,766.97.

                

        

      

       

      
        
          	
                	
                  (j) 

                	
                  Permitted
      Use:  General office use consistent with the operation of the
      Project as a first-class office building project, and for no other use or
      purpose.

                

        

      

       

      
        
          	
                	
                  (k) 

                	
                  Parking:  Up
      to thirteen (13) parking passes.  During any period in which
      Tenant occupies all or any portion of the Premises, Tenant shall be
      required to purchase six (6) parking passes for the term of the
      Lease.

                

        

      

       

      
        
          	
                	
                  (l) 

                	
                  Brokers:  Worthe
      Real Estate Group, as Landlord’s Broker, and Lee & Associates – LA
      North/Ventura, Inc., as Tenant's
Broker.

                

        

      

       

      
        
          	
                	
                  (m) 

                	
                  Guarantor:
      N/A.

                

        

      

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      This
Section 1
represents a summary of the basic terms of this Lease.  In the event
of any inconsistency between the terms contained in this Section 1 and any
specific provision of this Lease, the terms of the more specific provision shall
prevail.

       

      
        
          	
                  2. 

                	
                  PREMISES
      LEASED»

                

        

      

       

      .

       

      (a) Landlord
hereby leases to Tenant and Tenant hereby hires from Landlord the
Premises.  The Premises constitutes a part of the floor of the
Building designated in Section 1(c),
approximately as shown on the floor plan attached hereto as Exhibit
A.

       

      (b) For all
purposes of this Lease, the "Usable Area" and
"Rentable Area"
shall be deemed to be as set forth in Article 1 above,
notwithstanding any deviation in actual Usable and Rentable Area, unless the
physical boundaries of the Premises and/or the Building are hereafter
modified.

       

      (c) The
Premises are located in the Building which, together with its related parking
facilities, are located on a certain parcel or parcels of real property (the
"Site").  The
Building, the Site, any and all other improvements now or hereafter situated on
the Site and the "Common Areas" (as
hereinafter defined) are herein collectively referred to as the "Project".  Tenant
shall have the nonexclusive right to use, in common with other tenants in the
Building and the Project and subject to the Rules and Regulations referred to in
Section 33(a)
and the provisions of Section 26 below
respecting parking (including, without limitation, the parking rules and
regulations referred to therein), the following areas ("Common Areas") within
the Project:  (i) if and to the extent applicable, any Building common
entrances, lobbies and/or restrooms, common elevators, stairways and access
ways, loading docks, ramps, drives and platforms and any passageways and service
ways thereto, and the common pipes, conduits, wires and appurtenant equipment
serving the Premises and also other portions of the Project; and (ii) loading
and unloading areas, trash areas, parking areas, roadways, sidewalks, walkways,
parkways, driveways and landscaped areas and similar areas and facilities within
the Project; provided, however, that notwithstanding the designation of parking
areas as a part of the Common Areas pursuant hereto, nothing contained herein
shall be deemed to permit Tenant’s use of such parking areas constituting a part
of the Common Areas except to the extent permitted by parking passes for
particular parking areas within the Project in accordance with this
Lease.

       

      (d) Landlord
reserves the right from time to time:  (i) to install, use, maintain,
repair and replace pipes, ducts, conduits, wires and appurtenant meters and
equipment for service to other parts of the Project above the ceiling surfaces,
below the floor surfaces, within the walls and in the central core areas, and to
relocate any pipes, ducts, conduits, wires and appurtenant meters and equipment
included in the Premises which are located in the Premises or located elsewhere
outside the Premises, and to expand any building within the Project; (ii) to
make changes to the Common Areas, including, without limitation, changes in the
location, size, shape and number of driveways, entrances, parking spaces
(provided that Tenant shall remain entitled to the number of parking spaces set
forth in Section 1(k) of this Lease), parking areas, loading and unloading
areas, ingress, egress, direction of traffic, landscape areas and walkways;
(iii) to close temporarily any of the Common Areas for maintenance purposes so
long as reasonable access to the Premises remains available; (iv) to add
additional improvements to the Common Areas; (v) to use the Common Areas while
engaged in making additional improvements, repairs or alterations to the
Project; and (vi) to do and perform such other acts and make such other changes
in, to or with respect to the Common Areas, the Building or the Project as
Landlord may deem to be appropriate in the exercise of its reasonable business
judgment; provided, however, that Landlord shall in no event take any action
pursuant hereto which would materially and adversely affect the operation of
Tenant's business from the Premises without the prior consent of Tenant, which
consent shall not be unreasonably withheld, conditioned or delayed.

       

      
        
          	
                  3. 

                	
                   TERM;
      OPTION TO EXTEND »

                

        

      

       

      .

       

      (a) The term
of this Lease ("Term") shall be for
the period referenced in Section 1(e) above, commencing on the Commencement Date
(such initial period is referred to herein as the "Initial Term"),
unless this Lease is earlier terminated or the Term extended, in accordance with
this Lease.  Following determination of the Commencement Date, the
parties shall execute a memorandum confirming the occurrence of the Commencement
Date and the date of the scheduled expiration of the Initial Term.

       

      (b) Tenant
shall have the option to extend the Term of this Lease for one (1) extended term
of five (5) years (the "Extended Term"),
which Extended Term shall be exercisable by Tenant's delivery to Landlord of
written notice irrevocably exercising the Extended Term no earlier than nine (9)
months and no later than five (5) months prior to expiration of the Initial
Term; provided that (i) Tenant may not exercise such option when Tenant is in
default under this Lease (after Tenant's receipt of written notice from Landlord
and the expiration of any applicable cure period provided in Section 21(a) below),
and (ii) Tenant may rescind its exercise of such option by written notice to
Landlord no later than four (4)  months prior to expiration of the
Initial Term.  The terms and conditions of this Lease shall continue
in effect during such Extended Term, except (A) for terms and conditions of this
Lease which are either expressly or by their operation applicable only during
the Initial Term of this Lease or portions thereof, including, without
limitation, the provisions of Exhibit C attached
hereto, (B) that Tenant shall have no further right or option to extend the Term
of this Lease beyond the Extended Term, (C) the Base Year
hereunder  shall be adjusted to 2015, and (D) the Monthly Base Rent
shall be adjusted as of the commencement of such Extended Term to equal
ninety-five percent (95%) of the prevailing monthly fair market rental rate as
of the commencement of such Extended Term (the "Fair Market Rental
Rate") for tenants of premises comparable to the Premises in comparable
first-class office buildings in the vicinity of the Premises ("Comparable
Buildings") for periods comparable to the Extended Term (including,
without limitation, consideration of such rental increases, tenant improvements,
and other concessions as may be appropriate for renewal deals during such
Extended Term).  Monthly Base Rent shall be increased on each yearly
anniversary of the Extended Term to an amount as may be determined by the
procedure set forth herein. Following Tenant's valid exercise of the option to
extend granted hereby, the parties shall enter into an amendment to the Lease
(the "Extension
Amendment"), prepared by Landlord and subject to Tenant's reasonable
approval, memorializing the terms of such extension of the Term by the Extended
Term.  As used in this Lease, references to the "Term" of this Lease,
shall mean the initial Term as the same may be extended by the Extended Term, as
applicable, as the context may require.  The Fair Market Rental Rate
for the Extended Term shall be determined as follows:

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (i) Following
Tenant's exercise of its option to extend the Term by the Extended Term,
Landlord and Tenant shall meet and endeavor in good faith to agree upon the Fair
Market Rental Rate.  If Landlord and Tenant fail to reach agreement by
the date which is three (3) months prior to the commencement of the Extended
Term, then, within ten (10) days thereafter, each party, at its own cost and by
giving notice to the other party, shall appoint a licensed commercial real
estate agent with at least seven (7) years full-time experience as a real estate
agent active in leasing of commercial office buildings in the area of the
Premises to appraise and set the Fair Market Rental Rate for the Extended
Term.  If a party does not appoint an agent within ten (10) days after
the other party has given notice of the name of its agent, the single agent
appointed shall be the sole agent and shall set the Fair Market Rental Rate for
the Extended Term.  If there are two (2) agents appointed by the
parties as stated above, the agents shall meet within ten (10) days after the
second agent has been appointed and attempt to set Fair Market Rental Rate for
the Extended Term.  If the two (2) agents are unable to agree on such
Fair Market Rental Rate within ten (10) days after the second agent has been
appointed, they shall, within ten (10) days after the last day the two (2)
agents were to have set such Fair Market Rental Rate, attempt to select a third
agent who shall be a licensed commercial real estate agent meeting the
qualifications stated above.  If the two (2) agents are unable to
agree on the third agent within such ten (10) day period, either Landlord or
Tenant may request the President of the Los Angeles County Realtors Association
to select a third agent meeting the qualifications stated in this
subsection.  Each of the parties shall bear one-half (1/2) of the cost
of appointing the third agent and of paying the third agent's fee.  No
agent shall be employed by, or otherwise be engaged in business with or
affiliated with, Landlord or Tenant, except as an independent
contractor.

       

      (ii) Within
thirty (30) days after the selection of the third agent, a majority of the
agents shall set the Fair Market Rental Rate for the Extended
Term.  If a majority of the agents are unable to set such Fair Market
Rental Rate within the stipulated period of time, each agent shall make a
separate determination of such Fair Market Rental Rate and the three (3)
appraisals shall be added together and the total shall be divided by three
(3).  The resulting quotient shall be the Fair Market Rental Rate for
the Premises for the Extended Term.  If, however, the low appraisal
and/or high appraisal is/are more than fifteen percent (15%) lower and/or higher
than the middle appraisal, the low appraisal and/or the high appraisal shall be
disregarded.  If only one (1) appraisal is disregarded, the remaining
two (2) appraisals shall be added together and their total divided by two (2),
and the resulting quotient shall be Fair Market Rental Rate for the Extended
Term.  If both the low appraisal and the high appraisal are
disregarded as stated in this subsection, the middle appraisal shall be the Fair
Market Rental Rate for the Extended Term.

       

      (iii) Each
agent shall hear, receive and consider such information as Landlord and Tenant
each care to present regarding the determination of Fair Market Rental Rate for
the Extended Term and each agent shall have access to the information used by
each other agent.  Upon determination of the Fair Market Rental Rate
for the Extended Term, the agents shall immediately notify the parties hereto in
writing of such determination in the manner provided in this Lease for the
giving of notices to the parties hereto.

       

      
        
          	
                  4. 

                	
                  DELIVERY
      OF POSSESSION»

                

        

      

      .

      

      Landlord
shall deliver possession of the Premises to Tenant on the Commencement
Date.  In the event that possession of the Premises is not delivered
to Tenant on the Commencement Date, the Commencement Date shall be extended to
the date that possession of the Premises is delivered to Tenant.  In
the event that possession of the Premises is not delivered by July 30, 2010,
Tenant may elect to terminate this Lease upon thirty (30) days’ notice, which
notice shall be rendered ineffective if possession of the Premises is delivered
within said thirty (30) day period.  The taking of possession of the
Premises by Tenant shall conclusively establish that the Premises and the
Project were in satisfactory condition at such time, subject to Landlord’s
correction of any punch-list items identified by Tenant to Landlord pursuant to
Exhibit C
attached hereto.  If Tenant totally or partially occupies the Premises
prior to the Commencement Date, the obligation to pay Monthly Base Rent shall be
abated for the period of such early occupancy.  All other terms of
this Lease, however, (including, but not limited to, Tenant’s obligation to
maintain all insurance required by this Lease) shall be in effect during such
period.  Any such early possession shall not affect nor advance the
Expiration Date of the Term.

       

      
        
          	
                  5. 

                	
                  RENT;
      SECURITY DEPOSIT»

                

        

      

       

      .

       

      (a) Tenant
agrees to pay Landlord as Monthly Base Rent for the Premises during the Initial
Term the applicable Monthly Base Rent designated in Section 1(f) and
during the Extended Term the Monthly Base Rent determined as set forth in Section 3(b)
above.  Monthly Base Rent shall be paid monthly in advance on the
first day of each and every calendar month during the Term, except that Tenant
shall pay Monthly Base Rent for the first (1st) full month for which Monthly
Base Rent is due under this Lease concurrently with the execution of this Lease,
and except that notwithstanding anything to the contrary contained in this
Lease, Tenant’s obligation for payment of Monthly Base Rent and for Parking
shall be conditionally abated during the second (2nd), third
(3rd) and
eighth (8th) months
of the Term, provided that in the event of the early termination of this Lease
as a result of Tenant’s default under this Lease (which is not cured within the
applicable period for cure provided under this Lease), then, in addition to all
other rights and remedies of Landlord under this Lease, the amount of Monthly
Base Rent and Parking theretofore so conditionally abated shall be immediately
due and payable in full to Landlord.  In the event the Term of this
Lease commences on a day other than the first day of a calendar month or ends on
a day other than the last day of a calendar month, then the "Rent" (as hereinafter
defined) for such periods shall be prorated in the proportion that the number of
days this Lease is in effect during such periods bears to the actual number of
days in such month, and such Rent shall be paid at the commencement of such
period.  In addition to the Monthly Base Rent, Tenant agrees to pay
all other amounts required to be paid hereunder as and when same are due as
hereinafter provided in this Lease.  Except as otherwise specifically
provided in this Lease, Rent shall be paid to Landlord, without any prior notice
or demand therefor, and without any abatement, deduction or offset whatsoever,
in lawful money of the United States of America, which shall be legal tender at
the time of payment, at the address of Landlord designated in Section 1(b) or to
such other person or at such other place as Landlord may from time to time
designate in writing.  All charges to be paid by Tenant hereunder
other than Monthly Base Rent shall constitute additional rent, shall be paid in
the manner provided herein and shall sometimes be collectively referred to as
"Additional
Rent".  Monthly Base Rent and Additional Rent are collectively
referred to herein as "Rent".

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (b) Tenant
acknowledges that the late payment by Tenant to Landlord of any sums due under
this Lease will cause Landlord to incur costs not contemplated by this Lease,
the exact amount of such costs being extremely difficult and impracticable to
fix.  Such costs include, without limitation, processing and
accounting charges, and late charges that may be imposed on Landlord by the
terms of any encumbrance or note secured by all or any portion of the
Project.  Therefore, if Tenant fails to pay any Rent within five (5)
days of the due date under this Lease for any reason, Tenant shall pay to
Landlord, as Additional Rent, the sum of six percent (6%) of the overdue amount
as a late charge; provided, however, that with respect to the first late charge
only during each calendar year, Landlord shall be required to provide Tenant
written notice and two (2) business days’ opportunity to cure, before such late
charge shall be due.  All installments of Rent (other than any late
charge(s)) past-due  for more than thirty (30) days shall also bear
interest, as Additional Rent, at the "Interest Rate" (as
hereinafter defined), from the date due until paid.  For purposes of
this Lease, the "Interest Rate" shall
mean the greater of (i) twelve percent (12%) per annum, or (ii) two percent (2%)
per annum plus the per annum "prime rate" as then most recently published in the
Wall Street
Journal (or the "prime rate" as established by a comparable source as
reasonably designated by Landlord if the Wall Street Journal
ceases to publish a prime rate), provided that in no event shall the Interest
Rate exceed the maximum rate permitted by applicable law governing interest rate
restrictions.  Landlord's acceptance of any late charge or interest
shall not constitute a waiver of Tenant's default with respect to the overdue
amount or prevent Landlord from exercising any of the other rights and remedies
available to Landlord under this Lease, at law or in equity.

       

      (c) Concurrent
with the execution of this Lease, Tenant has deposited with Landlord the
Security Deposit designated in Section
1(i).  Tenant hereby grants to Landlord a security interest in
the Security Deposit in accordance with applicable provisions of the California
Commercial Code.  The Security Deposit shall be held by Landlord as
security for the faithful performance by Tenant of all of the terms, covenants,
and conditions of this Lease to be kept and performed by Tenant during the Term
hereof.  If Tenant defaults with respect to any provisions of this
Lease, including but not limited to the provisions relating to the payment of
Rent, Landlord may (but shall not be required to) use, apply or retain all or
any part of the Security Deposit for the payment of any Rent or any other sum in
default, or for the payment of any other amount which Landlord may spend or
become obligated to spend by reason of Tenant's default or to compensate
Landlord for any loss or damage which Landlord may suffer by reason of Tenant's
default.  If any portion of the Security Deposit is so used or
applied, Tenant shall, within ten (10) days after demand therefor, deposit
cash with Landlord in an amount sufficient to restore the Security Deposit to
the then required amount.  Landlord shall not be required to keep the
Security Deposit separate from its general funds, and Tenant shall not be
entitled to interest on such Security Deposit.  Tenant waives any
rights it may have under Section 1950.7 of the
California Civil Code with respect to the Security Deposit.  Within
thirty (30) days following the expiration of the Term or earlier termination of
this Lease and Tenant's performance of all of its obligations under this Lease,
the Security Deposit or any balance thereof shall be returned to
Tenant.  If Landlord sells its interest in the Project during the Term
hereof and deposits with the purchaser thereof the then unappropriated funds
deposited by Tenant as aforesaid, Landlord shall be discharged from any further
liability with respect to such Security Deposit.

       

      
        
          	
                  6. 

                	
                  OPERATING
      AND TAX EXPENSES»

                

        

      

       

      .

       

      (a) For the
purposes of this Section 6, the following terms are defined as
follows:

       

      (i) "Tenant's Percentage"
shall be that percentage set forth in Section 1(g),
which percentage is the quotient of the Rentable Area of the Premises divided by
the Rentable Area of the Project, and which percentage shall be subject to
adjustment in the event of reduction or increase in the Rentable Area within the
Premises and/or Project.

       

      (ii) "Base Year Operating
Expenses" shall mean the "Operating Expenses"
(as hereinafter defined) incurred in the Base Year.

       

      (iii) "Base Year Tax
Expenses" shall mean the "Tax Expenses" (as
hereinafter defined) incurred in the Base Year.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      (iv) "Comparison Year"
shall mean each calendar year during the Term from, including and after the Base
Year.

       

      (v) "Operating Expenses"
shall consist of all costs of operation, management, ownership, maintenance and
repair of the Project, as determined by accepted principles of sound accounting
practice, including the following costs by way of illustration, but not
limitation:  electric, water, sewer and other utility charges;
accounting, legal and other consulting fees; the cost and expense of insurance
for which Landlord may be responsible pursuant to this Lease, or which Landlord
deems appropriate in connection with the Project; losses or costs of repair of
damage not covered by insurance due to deductible amounts under such insurance
policies; the cost of janitorial services (including, without limitation,
required supplies, trash removal and hauling), security, and labor; utilities
surcharges; expenditures required in order to comply with "Laws" (as defined in
Section 7(a)
below); costs incurred in the management of the Project including, without
limitation, supplies, wages and salaries of employees used in the management,
operation and maintenance of the Project, and payroll taxes and similar
governmental charges with respect thereto, Project management office rental, and
a management fee; the cost of supplies, materials, equipment and tools required
in the maintenance and repair of the Project; the cost of repair and maintenance
(including, without limitation, costs of rental of personal property used in
maintenance) of the structural portions, vertical transportation systems, and
other mechanical and utility systems of the Project and other portions of the
Project to be maintained and repaired by Landlord (including, without
limitation, the plumbing, heating, ventilating, air conditioning and electrical
systems installed or furnished by Landlord); the costs and expenses of gardening
and landscaping, maintenance of signs (other than amounts allocable to
maintenance of signs identifying particular Project occupants) and all other
upkeep of the Common Areas; personal property taxes levied on or attributable to
personal property used in connection with the Project; reasonable audit or
verification fees; and costs and expenses of general repairs and maintenance,
resurfacing, painting, lighting and similar items.  In the event the
Rentable Area of the Project is less than ninety-five percent (95%) occupied
during the Base Year or any Comparison Year during the Term, then in calculating
Operating Expenses for such year, the variable components of Operating Expenses
shall be "grossed up" to reflect such amounts as would have been incurred had
the Rentable Area of the Project been ninety-five percent (95%) occupied during
such year.  In the event that the components of Operating Expenses
during the Base Year are materially different from those in any Comparison Year,
then an appropriate adjustment shall be made to the calculation of Operating
Expenses for the Base Year to account for such materially different
components.   By way of example, if Landlord does not maintain
earthquake insurance during the Base Year, but subsequently elects to obtain
such insurance, the Base Year expenses shall be appropriately adjusted as if
such insurance had been maintained in the Base Year as well.  In
addition, if Landlord is not furnishing any particular work or service (the cost
of which, if performed by Landlord, would be included in Operating Expenses) to
a tenant who has undertaken to perform such work or service in lieu of the
performance thereof by Landlord, Operating Expenses shall be deemed to be
increased by an amount equal to the additional Operating Expenses which would
reasonably have been incurred during such period by Landlord if it had at its
own expense furnished such work or service to such tenant.  Operating
Expenses for the Base Year shall not include market-wide cost increases due to
extraordinary circumstances, including, but not limited to, Force Majeure
Events, boycotts, strikes, conservation surcharges, embargoes or shortages, or
amortized costs relating to capital improvements.

       

      (vi) Notwithstanding
anything to the contrary contained in this Lease, "Operating Expenses"
shall not include any of the following:  (1) any ground lease rental;
(2) capital expenditures to the extent the same constitute upgrades as opposed
to repairs or replacements, unless required to comply with applicable Laws; (3)
costs incurred for repair of damage to the Building to the extent reimbursed by
insurance proceeds (or which would have been reimbursed by any insurance
required to be maintained by Landlord hereunder), provided that insurance
deductibles of not more than $250,000.00 in any calendar year shall be included
in Operating Expenses; (4) costs, including permit, license and inspection
costs, incurred with respect to the installation of tenant improvements to other
tenant's leased premises within the Project or incurred in renovating or
otherwise improving, decorating, painting or redecorating vacant leasable space
within the Project; (5) depreciation, amortization and interest payments, except
on materials, tools, supplies and vendor-type equipment purchased by Landlord to
enable Landlord to supply services Landlord might otherwise contract for with a
third party where such depreciation, amortization and interest payments would
otherwise have been included in the charge for such third party's services; (6)
marketing costs, including leasing commissions, attorneys' fees in connection
with the negotiation and preparation of letters, deal memos, letters of intent,
leases, subleases and/or assignments, space planning costs, and other costs and
expenses incurred in connection with lease, sublease and/or assignment
negotiations and transactions with present or prospective tenants or other
occupants of the Project; (7) expenses in connection with services which are not
available to Tenant; (8) legal fees and related expenses and legal costs
incurred by Landlord (together with any damages awarded against Landlord) due to
the violation by Landlord or any tenant of the terms and conditions of any lease
of space in the Project; (9) overhead and profit paid to Landlord or to
subsidiaries or affiliates of Landlord for goods and/or services in the Project
to the extent the same exceeds the costs of such goods and/or services rendered
by qualified, unaffiliated third parties on a competitive basis; (10) interest,
principal, points and fees on debts or amortization on any mortgage or mortgages
or any other debt instrument encumbering the Project; (11) Landlord's general
corporate overhead and general and administrative expenses not specifically
incurred in the management, maintenance and operation of the Project; (12) costs
incurred in correcting any non-compliance of the Project with Laws where such
non-compliance was existing as of the delivery of possession of the Premises to
Tenant; (13) Tax Expenses; (14) costs arising from the presence of any existing
Hazardous Materials upon or beneath the Project; (15) costs arising from
Landlord's gross negligence or wilful misconduct; (16) costs arising from
Landlord's charitable or political contributions; and (17) costs (other than
ordinary maintenance) for sculpture, paintings and other objects of
art.

       

      (vii) As used
herein, the term "Tax
Expenses" shall include any form of assessment, license fee, license tax,
business license fee, transit tax or fee, commercial rental tax, levy, charge,
penalty (other than tax penalties incurred as a result of Landlord's gross
negligence, inability or unwillingness to make payments when due) tax or similar
imposition, imposed by any authority having the direct power to tax, including
any city, county, state or federal government, or any school, agricultural,
lighting, drainage, transportation or other improvement or special assessment
district thereof, as against any legal or equitable interest of Landlord in the
Project and the Premises, or any portion thereof, including, but not limited to,
the following:

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (1) any tax
on Landlord's right to Rent or right to other income from the Premises or as
against Landlord's business of leasing the Premises;

       

      (2) any
assessment, tax, fee, levy or charge in substitution, partially or totally, of
any assessments, taxes, fees, levies and charges that may be imposed by
governmental agencies for such services as fire protection, street, sidewalk and
road maintenance, refuse removal and for other governmental services formerly
provided without charge to property owners or occupants.  It is the
intention of Tenant and Landlord that all such new and increased assessments,
taxes, fees, levies and charges be included within the definition of Tax
Expenses for the purposes of this Lease;

       

      (3) any
assessment, tax, fee, levy or charge allocable to or measured by the area of the
Premises or the Rent payable hereunder, including, without limitation, any gross
income tax or excise tax levied by the state, city or federal government, or any
political subdivision thereof, with respect to the receipt of such Rent, or upon
or with respect to the possession, leasing, operating, management, maintenance,
alteration, repair, use or occupancy by Tenant of the Premises, or any portion
thereof; and

       

      (4) any
assessment, tax, fee, levy or charge upon this transaction or any document to
which Tenant is a party creating or transferring an interest or an estate in the
Premises, or based upon a reassessment of the Project, or any portion thereof,
due to a change in ownership or transfer of all or part of Landlord's interest
in this Lease, the Project, or any portion thereof (except to the extent
specifically excluded pursuant to clause (A) below).

       

      Notwithstanding
any provision of this Section 6 expressed
or implied to the contrary, (A) Tax Expenses shall not include (I) Landlord's
federal or state net income, franchise, inheritance or estate taxes, (II) tax
penalties incurred as a result of Landlord's gross negligence, inability or
unwillingness to make payments when due; (III) special assessments or special
taxes initiated by Landlord as a means of financing improvements to the Project;
or (IV) during the initial Term, any increase in Tax Expenses resulting from and
sale or other transfer of Landlord’s interest in the Premises, Building, or
Project; and (B) there shall be no duplication of items included in Tax Expenses
and items included in Operating Expenses.  Tenant shall have such
rights to reasonably contest the validity or amount of Tax Expenses as are
permitted by applicable Laws, at Tenant's sole cost, and Landlord shall
reasonably cooperate with Tenant in connection therewith (at no cost to
Landlord), provided that no such contest shall in any manner limit Tenant's
obligation to pay Tenant's Tax Expenses Excess as and when required under this
Lease.

       

      (b)   (i)           For
each Comparison Year during the Term following the expiration of the Base Year,
Tenant shall pay to Landlord, commencing on the first (1st) day of
the thirteenth (13th) month
of the Term and in the manner set forth in this Section 6(b), (1) the
amount, if any, by which Tenant's Percentage of Operating Expenses for such
Comparison Year increase over the Tenant's Percentage of Operating Expenses for
the Base Year (the amount of such increase is referred to in this Lease as the
"Tenant's Operating
Expenses Excess"); plus (2) the amount, if any, by which Tenant's
Percentage of Tax Expenses for such Comparison Year increase over the Tenant's
Percentage of Tax Expenses for the Base Year (the amount of such increase is
referred to in this Lease as the "Tenant's Tax Expenses
Excess").  The sum of Tenant's Operating Expenses Excess plus
Tenant's Tax Expenses Excess is referred to herein as "Tenant's Expenses
Excess".  If the final Comparison Year includes time beyond the
expiration of the Term or earlier termination of this Lease, the calculation of
Tenant's Expenses Excess for such Comparison Year shall be equitably prorated by
Landlord.

       

      (ii)           Before
or after the expiration of the Base Year, Landlord shall deliver to Tenant a
statement (the "Estimate Statement")
wherein Landlord shall estimate the Tenant's Expenses Excess for the initial
Comparison Year (the amount of such estimated Tenant's Expenses Excess for any
Comparison Year, as such estimate may be adjusted from time to time as
hereinafter provided, is referred to herein as the "Estimated
Excess").  If the portion of the initial Comparison Year
following the expiration of the Base Year is less than a full calendar year, any
Estimated Excess for such initial Comparison Year pursuant to such Estimate
Statement shall be paid in equal installments on the first day of each calendar
month remaining during the first Comparison Year following the expiration of the
Base Year.  If the initial Comparison Year following the expiration of
the Base Year is a full calendar year, then during the initial Comparison Year,
and, in any event, during each Comparison Year following the initial Comparison
Year, payments by Tenant of the Estimated Excess shall be made in equal monthly
installments on the first day of each calendar month during the applicable
Comparison Year on the basis of Landlord's most recently delivered Estimate
Statement.  On or before May 1st of each Comparison Year during the
Term following the initial Comparison Year, Landlord shall endeavor to deliver
to Tenant an Estimate Statement of the Tenant's Expenses Excess for the then
current Comparison Year.  In addition, Landlord shall have the right,
not more than semi-annually, to deliver a revised Estimate Statement for a
current Comparison Year, if Landlord in good faith determines that there is a
material inaccuracy or omission in the then applicable Estimate Statement for
such Comparison Year.  Following Landlord's delivery of such a new
Estimate Statement for the current Comparison Year, Tenant shall pay to
Landlord, within thirty (30) days of the delivery of such Estimate Statement,
the difference between the Estimated Excess under such new Estimate Statement
and the Estimated Excess under the prior Estimate Statement prorated for the
then elapsed portion of the then current Comparison Year, and Tenant shall
thereafter (beginning with the first calendar month following receipt of such
new Estimate Statement) make monthly payments with respect to the Estimated
Excess on the basis of such new Estimate Statement until Tenant's receipt of a
subsequent Estimate Statement.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      (iii)           On
or before May 1st following each Comparison Year during the Term of this
Lease, Landlord shall endeavor to deliver to Tenant a statement ("Actual Statement")
which states the actual Tenant's Percentage of Operating Expenses and the actual
Tenant's Percentage of Tax Expenses for such preceding Comparison
Year.  If the Actual Statement reveals that the actual Tenant's
Expenses Excess for such preceding Comparison Year exceeds the total amount of
Tenant's payments of Estimated Excess for such preceding Comparison Year, Tenant
shall pay Landlord the difference in a lump sum within thirty (30) days of
receipt of the Actual Statement.  If the Actual Statement reveals that
the actual Tenant's Expenses Excess for such preceding Comparison Year is less
than the total amount of Tenant's payments of Estimated Excess for such
preceding Comparison Year, Landlord shall credit such overpayment toward
Tenant's Rent obligations next coming due under this Lease.

       

      (iv)           Any
delay or failure by Landlord in delivering any Estimate Statement or Actual
Statement pursuant to this Section 6(b)
shall not constitute a waiver of its right to require Tenant's payment of
Tenant's Expenses Excess nor shall it relieve Tenant of its obligations pursuant
to this Section 6.

       

      (v)           In
the event the Term has expired and Tenant has vacated the Premises, at such time
as the final determination has been made regarding Tenant's Percentage of
Operating Expenses and Tenant's Percentage of Tax Expenses for the Comparison
Year in which this Lease terminated (which determination shall be timely made),
Tenant shall, within thirty (30) days following receipt of the Actual Statement
for such final Comparison Year, pay any amounts due as a result of the actual
Tenant's Expenses Excess for such Comparison Year exceeding Estimated Excess
paid with respect thereto and, conversely, any overpayment made in the event the
actual Tenant's Expenses Excess for such Comparison Year are less than Estimated
Excess paid with respect thereto shall be remitted to Tenant by Landlord
concurrently with Landlord's delivery of the Actual Statement for such final
Comparison Year.  Nothing contained in this Section 6 shall
in any manner result in a decrease in Monthly Base Rent.  Further, in
the event that Operating Expenses for any Comparison Year are less than
Operating Expenses for the Base Year and/or Tax Expenses for any Comparison Year
are less than Tax Expenses for the Base Year, Tenant shall not receive a credit
against any Rent payable hereunder.

       

      
        
          	
                  7. 

                	
                  USE»

                

        

      

       

      .

       

      (a) Tenant
shall use the Premises for the use or uses set forth in Section 1(j)
above, and shall not use or permit the Premises to be used for any other purpose
whatsoever.  Tenant shall use and occupy the Premises in compliance
with all applicable federal, state and local laws, codes, rules, ordinances,
statutes and other requirements (collectively, "Laws") (which Laws
shall include, without limitation, the Americans with Disabilities Act of 1990,
applicable fire-life safety codes of the City of Los Angeles and requirements
imposed in connection with the development or occupancy of the Building,
including, without limitation, participation in any transportation management
programs and compliance with applicable air quality/trip reduction
requirements), and shall, upon written notice from Landlord, discontinue any use
of the Premises which is declared by any governmental authority having
jurisdiction to be a violation of applicable Laws.  Tenant shall make
any and all alterations or improvements to the Premises required to comply with
applicable Laws; except that Tenant shall not be required to make structural
alterations or improvements to the Premises required to comply with applicable
Laws unless such compliance is necessitated by Tenant's particular use of, or
Alterations to, the Premises.  Tenant shall comply with all rules,
orders, regulations and requirements of any insurance authority having
jurisdiction over the Project or any present or future insurer relating to the
Premises or the Project.  Tenant shall promptly, upon demand,
reimburse Landlord for any additional premium charged for any existing insurance
policy or endorsement required by reason of Tenant's failure to comply with the
provisions of this Section 7 or by
reason of Tenant's use or occupancy of the Premises.  Tenant shall not
do or permit anything to be done in or about the Premises which will in any
manner obstruct or interfere with the rights of other tenants or occupants of
the Project, or injure them, or use or allow the Premises to be used for any
unlawful purpose, nor shall Tenant cause, maintain or permit any nuisance in, on
or about the Premises.  Tenant shall not commit or suffer to be
committed any waste in or upon the Premises and shall keep the Premises in first
class repair and appearance.  Tenant shall not use all or any part of
the Premises for any medical or dental uses.  Tenant shall not place a
load upon the Premises exceeding the average pounds of live load per square foot
of floor area specified for the Building by Landlord's architect, with the
partitions to be considered a part of the live load.  Landlord
reserves the right to prescribe the weight and positions of all safes, files and
heavy equipment which Tenant desires to place in the Premises so as to
distribute properly the weight thereof.

       

      (b)  »

       

      (i)   (i)           To
Landlord’s actual knowledge, as of the delivery of possession of the Premises to
Tenant, no portion of the Project shall be in violation of any applicable Laws
respecting “Hazardous
Materials” (as hereinafter defined).  In the event that
following the delivery of possession of the Premises, it is determined that any
portion of the Project was, as of the delivery of possession of the Premises, in
violation of applicable Laws respecting Hazardous Materials and the same has a
material and adverse affect upon the operation of Tenant’s business from the
Premises, then Landlord shall promptly thereafter cause the remediation of the
same so as to cure such material and adverse affect.

       

      (ii) Except
general office supplies typically used in an office area in the ordinary course
of business, such as copier toner, liquid paper, glue, ink, and cleaning
solvents, for use in the manner for which they were designed, in such amounts as
may be normal for the office business operations conducted by Tenant in the
Premises, neither Tenant nor any subtenant nor any of their respective
employees, agents, representatives, contractors, licensees or invitees, shall
use, handle, store or dispose of any Hazardous Materials in, on, under or about
the Premises, the Building or the Project.  In the event of a breach
of the covenant contained in the immediately preceding sentence, or in the event
Hazardous Materials are otherwise caused to be located in, on, under or about
the Premises, Building or Project by Tenant, any of its subtenants, or any of
their respective employees, agents, representatives, contractors, licensees or
invitees, Tenant shall be solely responsible for and shall indemnify, defend and
hold Landlord harmless from and against any and all claims, judgments, damages,
penalties, fines, costs, liabilities and losses (including, without limitation,
diminution in valuation of the Premises, Building or Project, and sums paid in
settlement of claims and for reasonable attorneys' fees, consultant fees and
expert fees) which arise during or after the Term as a result of any
contamination directly or indirectly arising from the activities which are the
basis for such breach.  This indemnification of Landlord by Tenant
includes, without limitation, costs incurred in connection with any
investigation of site conditions or any clean-up, remedial, removal or
restoration work.  Tenant shall promptly take all actions, at its sole
cost and expense, as are necessary to return the Premises, Building and/or
Project to the condition existing prior to the introduction of any such
Hazardous Materials, provided Landlord's approval of such actions shall first be
obtained and Tenant shall fully cooperate in connection with any such clean-up,
restoration or other work, at Tenant's sole cost and
expense.  Furthermore, Tenant shall immediately notify Landlord of any
inquiry, test, investigation or enforcement proceeding by or against Tenant or
the Premises concerning the presence of any Hazardous
Materials.  Tenant acknowledges that Landlord, at Landlord's election,
shall have the sole right, at Tenant's expense, to negotiate, defend, approve
and appeal any action taken or order issued by any governmental authority with
regard to any Hazardous Materials contamination which Tenant is obligated
hereunder to remediate.  The covenants of Tenant under this Section 7(b)(ii)
shall survive the expiration of the Term or earlier termination of this
Lease.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      (iii) "Hazardous Materials"
shall mean asbestos, petroleum fuel, natural gas or any fraction thereof, and
any hazardous or toxic substance, material or waste which is or become regulated
by any local governmental authority, the State of California or the United
States Government, including, but not limited to, any material or substance
defined as a "hazardous waste," "extremely hazardous waste," "restricted
hazardous waste," "hazardous substance," "hazardous material" or "toxic
pollutant" under state or federal laws, statutes or regulations, including,
without limitation, the California Health and Safety Code and/or under the
Comprehensive Environmental Response, Compensation and Liability Act, 42. U.S.C.
§9601, et seq.

       

      
        
          	
                  8. 

                	
                  TAXES ON TENANT'S
      PROPERTY».

                

        

      

       

        Tenant
shall be liable for and shall pay, before delinquency, all taxes levied against
any personal property and/or trade fixtures placed by Tenant in or about the
Premises, and all real property taxes on the value of any Tenant Improvements
and Alterations in the Premises in excess of Twenty-Five Dollars ($25.00) per
square foot of Usable Area in the Premises.  If any such taxes on
Tenant's personal property, trade fixtures, Alterations and/or Tenant
Improvements are levied against Landlord or Landlord's property or if the
assessed value of the Premises or the Project is increased by the inclusion
therein of a value placed upon such personal property, trade fixtures,
Alterations and/or Tenant Improvements, Tenant shall pay the amount thereof as
invoiced to Tenant by Landlord within thirty (30) days following receipt of such
invoice together with reasonable evidence of such allocation.

       

      
        
          	
                  9. 

                	
                  CONDITION OF
      PREMISES».

                

        

      

       

        Tenant
acknowledges that except as specifically otherwise provided in this Lease and
subject to express Landlord's representations, warranties and covenants set
forth in this Lease, (i) the lease of the Premises by Tenant pursuant hereto
shall be on an "as is" basis, (ii) neither Landlord nor any employee,
representative or agent of Landlord has made any representation or warranty with
respect to the Premises or any other portion of the Project, and (iii) except as
specifically otherwise provided in Exhibits C and  C-1 of this Lease,
Landlord shall have no obligation to improve or alter the Premises or Project
for the benefit of Tenant.

       

      
        
          	
                  10. 

                	
                  ALTERATIONS»

                

        

      

       

      .

       

      (a) Tenant
shall not make or allow to be made any alterations, additions or improvements
(collectively, any "Alterations") in or
to the Premises during the Term without obtaining Landlord's prior written
consent (which consent shall not be unreasonably withheld or delayed); except,
however, that Tenant may make interior, non-structural Alterations to the
Premises costing less than Fifteen Thousand Dollars ($15,000.00) per work of
Alterations and not (i) requiring the demolition of any existing improvements or
(ii) affecting the roof, mechanical or utility systems serving the Premises or
the exterior appearance of the Building, without Landlord's prior consent but
upon at least ten (10) days prior written notice to Landlord.  Any
request for consent to Alterations requiring consent shall be accompanied by two
(2) complete sets of plans and specifications for the proposed Alterations
suitable for submission to Landlord's architect for evaluation and a statement
of the identity of the contractor who will perform such
Alterations.  If Landlord's consent is required for any Alterations,
Tenant shall pay all reasonable out-of-pocket costs incurred by Landlord in the
evaluation of the plans and specifications, including, but not limited to,
Landlord's general contractor's, architects' and engineers'
fees.  Landlord shall have the right to require that any and all
Alterations work (except for such interior, non-structural Alterations to the
Premises costing less than Fifteen Thousand Dollars ($15,000.00) per work of
Alterations) be performed by Landlord's designated contractors and
subcontractors, or (if Landlord does not so require that such work be performed
by Landlord's designated contractors and subcontractors), Landlord shall have
the right to approve the contractor and subcontractors performing such
Alterations, such approval not to be unreasonably withheld or delayed (provided
that in any event Building standard subcontractors shall be used for work on
Building roof, exterior, mechanical and utility systems), and Landlord shall
have the right to require that Tenant furnish assurances satisfactory to
Landlord that all contractors and subcontractors who will perform such work have
in force workers' compensation and such other employee and comprehensive general
liability insurance in accordance with the standards set forth in Section 17(a) (but
with a liability limit of not less than One Million Dollars ($1,000,000.00)),
and such other insurance as Landlord reasonably deems necessary to supplement
the insurance coverage provided for in Section
17(a).  All Alterations work to be performed by Tenant in the
Premises requiring the consent of Landlord pursuant hereto, including the
delivery, storage and removal of materials, shall be scheduled through and be
subject to the reasonable supervision of Landlord, and shall be performed in
accordance with any reasonable conditions or regulations imposed by
Landlord.  All Alterations work (whether or not Landlord's consent is
required therefor) shall be completed in a good and workmanlike manner and in
accordance with all applicable Laws.  All Alterations requiring
Landlord's consent shall be completed in accordance with the approved plans and
specifications therefor.  Promptly following the completion of any
Alterations where the preparation of "as-built" plans would be customary for the
particular Alterations work performed, Tenant shall deliver to Landlord the "as
built" plans and specifications (including all working drawings) for such
Alterations.  Promptly following the completion of any Alterations for
which any governmental permit, approval or sign-off is required under applicable
Laws, Tenant shall deliver to Landlord a copy of signed-off permits, inspection
cards or other documentation, if any is available given the nature of the
Alterations work performed, evidencing governmental approval of completion of
the work.  Promptly following the completion of any Alterations
requiring Landlord's consent, Tenant shall cause to be recorded in the Office of
the County Recorder of Los Angeles County a Notice of Completion in accordance
with Section 3093 of the California Civil Code or any successor statute with
respect to the work, and deliver a copy thereof to Landlord.  Any
supervision by Landlord of such Alterations shall in no event constitute
Landlord's approval of the work so performed, nor shall Landlord be responsible
for or have any liability with respect to such supervision or
work.  Copies of required building permits or authorizations shall be
obtained by Tenant at its expense and Tenant shall furnish copies of same to
Landlord.  The construction of the Tenant Improvements shall be
governed by Exhibit
C to this Lease and the Tenant Improvements shall not be deemed to
constitute Alterations for purposes of this Lease.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      (b) Any
mechanics' liens filed against the Premises or against the Building or the
Project for work claimed to have been done for, or materials claimed to have
been furnished to, Tenant will be discharged by Tenant, by bond or otherwise,
within thirty (30) days after the filing thereof, at Tenant's sole cost and
expense.  All Alterations upon the Premises shall, unless Landlord
elects otherwise by written notice to Tenant at the time of Landlord’s approval
of Tenant's Alterations, become the property of Landlord upon the expiration of
the Term or earlier termination of this Lease, and shall remain upon and be
surrendered with the Premises, as part thereof, at the expiration of the Term or
earlier termination of this Lease.  If Landlord requires Tenant to
remove any Alterations, Tenant, at its sole cost and expense, agrees to remove
the identified Alterations on or before the expiration of the Term or earlier
termination of this Lease and repair any damage to the Premises caused by such
removal (or, at Landlord's option, Tenant agrees to pay to Landlord Landlord's
reasonable estimate of the costs of such removal and repair prior to such
expiration or termination).

       

      (c) The
initial Tenant Improvements made pursuant to this Lease shall be the sole
property of Landlord and shall not be removed by Tenant from the
Premises.  Notwithstanding the foregoing, all articles of personal
property and all business and trade fixtures (which are susceptible of removal
without material damage to the Premises or which are not permanently affixed to
the Premises), machinery, equipment, furniture and removable partitions owned by
Tenant or installed by Tenant at its expense in the Premises shall be and remain
the sole property of Tenant and may be removed by Tenant at any time during the
Term of this Lease and shall be removed by Tenant prior to the expiration of the
Term or earlier termination of this Lease, provided that Tenant shall at its
sole expense repair any damage caused by such removal.  If Tenant
shall fail to remove all of its property from the Premises upon the expiration
of the Term or earlier termination of this Lease for any cause whatsoever,
Landlord may, at its option, either treat such property as being conveyed to
Landlord in which case the same shall automatically and without further action
be deemed to be the sole property of Landlord, or remove the same in any manner
that Landlord shall choose, and store or dispose of said property without
liability to Tenant for loss thereof, and Tenant agrees to pay to Landlord upon
demand any and all expenses incurred in such removal, including court costs,
reasonable attorneys' fees and storage charges on such property for any length
of time that the same shall be in Landlord's possession.  In the
alternative, Landlord may, at its option, sell said property, or any of the
same, in such manner as Landlord determines to be appropriate in Landlord's
reasonable business judgment, for such prices as Landlord may obtain and apply
the proceeds of such sale to any amounts due under this Lease from Tenant to
Landlord and to the expense incident to the removal and sale of such
property.  Tenant waives the benefit of any statutory provisions
governing the treatment by a landlord of a tenant's personal property left in
leased premises following the expiration of the lease, in the event Tenant fails
to remove all of its property from the Premises upon the expiration of the Term
or earlier termination of this Lease, the parties hereby agreeing that the
provisions of this Lease constitute the express agreement of the parties with
respect thereto and are intended to govern such situation.

       

      
        
          	
                  11. 

                	
                  REPAIRS»

                

        

      

       

      .

       

      (a) From and
after delivery of possession of the Premises to Tenant, Tenant shall keep,
maintain and preserve the Premises in a first class condition and repair, and
shall, as and when needed, at Tenant's sole cost and expense, make all repairs
to the Premises and every part thereof (other than elements of the Premises to
be maintained and repaired by Landlord pursuant to this Lease) and all personal
property, trade fixtures and equipment within the Premises.  Subject
to the provisions of Section 10(c) above,
upon the expiration of the Term or sooner termination of this Lease, Tenant
shall surrender the Premises to Landlord in the same condition as when received,
as improved by the Tenant Improvements, excepting permitted Alterations which
Tenant is not required to remove pursuant to Section 10(b) above,
reasonable wear and tear, casualty damage governed by Section 18 below, and
damage which Landlord is obligated to repair under this Lease.

       

      (b) Landlord
shall keep, maintain and preserve in first-class condition and repair, the roof,
structure and foundation, integrated Building utility and mechanical systems,
parking facilities and other Common Areas of the Project, provided that to the
extent such maintenance and/or repair work is (i) attributable to items
installed in Tenant's Premises which are above standard interior improvements
(such as, for example, custom lighting, special HVAC and/or electrical panels or
systems, kitchen or restroom facilities and appliances constructed or installed
within Tenant's Premises), (ii) attributable to the installation, as a part of
the Tenant Improvements, Tenant's Alterations or Tenant's trade fixtures, of
items which are less than first-class in quality, workmanship or manner of
installation, and/or (iii) necessitated by the negligence or wilful misconduct
of Tenant or any of the "Tenant Parties" (as
hereinafter defined), then Tenant shall pay to Landlord the cost of such
maintenance and/or repairs.  Landlord shall not be liable for any
failure to make any such repairs or to perform any maintenance unless such
failure shall persist for an unreasonable time after written notice of the need
for such repairs or maintenance is given to Landlord by
Tenant.  Subject to the provisions of Sections 14(d), 18 and 19 below, there shall
be no abatement of Rent and no liability of Landlord by reason of any injury to
or interference with Tenant's business arising from the making of any repairs,
alterations or improvements in or to any portion of the Project or the Premises
or in or to fixtures, appurtenances and equipment therein.  Tenant
waives the right to make repairs at Landlord's expense under any law, statute or
ordinance now or hereafter in effect (including, without limitation, Sections
1941 and 1942 of the California Civil Code).

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      
        
          	
                  12. 

                	
                  LIENS».

                

        

      

       

        Tenant
shall not permit any mechanics', materialmen's or other liens to be filed
against the Project nor against Tenant's leasehold interest in the Premises on
account of any work performed by or on behalf of Tenant or its employees,
agents, invitees or contractors.  Landlord shall have the right at all
reasonable times to post and keep posted on the Premises any notices which it
deems necessary for protection from such liens.  If any such liens are
filed and are not discharged by Tenant (by bonding or otherwise) within thirty
(30) days following receipt of notice thereof from Landlord), Landlord may,
without waiving its rights and remedies based on such breach by Tenant and
without releasing Tenant from any of its obligations, cause such liens to be
released by any means it shall deem proper, including payment in satisfaction of
the claim giving rise to such liens.  Tenant shall pay to Landlord at
once, as Additional Rent, upon notice by Landlord, any sums paid by Landlord to
remove such liens.

       

      
        
          	
                  13. 

                	
                  ENTRY
      BY LANDLORD».

                

        

      

       

        Landlord
and its employees, agents, representatives, consultants and/or contractors shall
have the right from time to time without notice to Tenant (although Landlord
shall use reasonable efforts to provide Tenant with such prior oral or written
notice as is reasonably practicable under the circumstances, except in the event
of an emergency or for scheduled provision of services to the Premises) to enter
the Premises to inspect the same, to supply any service to be provided by
Landlord to Tenant hereunder, to show the Premises to prospective purchasers,
encumbrancers or tenants, to post notices of non-responsibility, to alter,
improve or repair the Premises or any other portion of the Building, all without
being deemed guilty of any eviction of Tenant and without abatement of Rent
(subject to the provisions of Section 14(d) below),
and may, in order to carry out such purposes, erect scaffolding and other
necessary structures where required by the character of the work to be
performed.  Landlord shall use reasonable efforts to minimize any
interference with the operation of Tenant's business from the Premises resulting
from any such entry (except in the event of an emergency).  Subject to
the provisions of Section 14(d) below,
Tenant hereby waives any claim for damages for any injury or inconvenience to or
interference with Tenant's business, any loss of occupancy or quiet enjoyment of
the Premises, and any other loss in, upon and about the Premises or the
Project.  Landlord shall at all times have and retain a key with which
to unlock all doors to and in the Premises.  In the event of an
emergency, Landlord shall have the right to use any and all means which Landlord
may deem proper to open said doors in order to obtain entry to the
Premises.  Any entry to the Premises obtained by Landlord by any of
said means, or otherwise, shall not be construed or deemed to be a forcible or
unlawful entry into the Premises, or an eviction of Tenant from the Premises or
any portion thereof.  It is understood and agreed that no provision of
this Lease shall be construed as obligating Landlord to perform any repairs,
alterations or decorations, except as otherwise expressly agreed herein by
Landlord.

       

      
        
          	
                  14. 

                	
                  UTILITIES
      AND SERVICES»

                

        

      

       

      .

       

      (a)  »

       

      (i) (i)           Tenant
shall be permitted access to the Premises and parking facilities serving the
Premises during the Term on a twenty-four (24) hours per day, seven (7) days per
week basis.

       

      (ii) The
Premises shall be furnished heating, ventilation and air conditioning ("HVAC"), at
comfortable temperatures consistent with the operation of comparable first-class
office buildings in the vicinity of the Building ("Comparable
Buildings") during the hours of 8:00 a.m. to 6:00 p.m. Monday through
Friday, and (if requested by Tenant in writing at least one (1) business day in
advance) 9:00 a.m. to 1:00 p.m. on Saturday, excluding Holidays (such hours are
collectively referred to herein as "Building
Hours").  As used herein, "Holidays" shall
include New Year's Day, Washington's Birthday (observed), Memorial Day,
Independence Day, Labor Day, Thanksgiving and Christmas and any other national
or state holiday customarily recognized by operators of Comparable
Buildings.  If requested by Tenant in writing at least one (1)
business day in advance, HVAC service shall be provided to the Premises other
than during Building Hours (for a minimum period of three (3) consecutive hours
at a time), provided that Tenant shall pay to Landlord for each such hour of
HVAC service during non-Building Hours, the then prevailing charge by Landlord
for such service, which is currently $55.00 per hour.  Amounts payable
by Tenant hereunder shall be paid as additional rent within fifteen (15) days
following Tenant's receipt of Landlord's billing therefor.  Tenant
agrees to reasonably cooperate with Landlord, and to abide by all reasonable
regulations and requirements which Landlord may prescribe for the proper
function and protection of the Building HVAC system.  Tenant agrees
not to connect any apparatus, device, conduit or pipe to the Building chilled
and hot water air conditioning supply lines.  Tenant further agrees
that neither Tenant nor its servants, employees, agents, visitors, licensees or
contractors shall at any time enter mechanical installations or facilities of
the Building or Project or unreasonably tamper with, touch or otherwise affect
said installations or facilities.  The cost of maintenance and service
calls to adjust and regulate the HVAC system shall be charged to Tenant if the
need for maintenance work results from either Tenant's unreasonably tampering
with room thermostats, defects in the HVAC system as installed by Tenant, or
Tenant's failure to comply with its obligations under this Section 14, or
Tenant's heat or cold generation in excess of that which is customary for
general office use.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      (iii) The
Premises shall be furnished electric power sufficient to accommodate a
conventional office tenant.  Any additional electrical power which
Landlord is able to make available to the Premises at Tenant's request shall be
subject to Tenant's reimbursement of Landlord's reasonable costs (including,
without limitation, administrative and overhead costs) of providing such
additional electrical power (including, without limitation, if applicable, costs
of installing facilities sufficient to provide such additional electrical
power), which amount shall be paid to Landlord as additional rent within thirty
(30) days following Tenant's receipt of Landlord's billing
therefor.  Tenant agrees not to connect any apparatus or device with
wires, conduits or pipes, or other means by which such services are supplied,
for the purpose of using amounts of such services in excess of the capacity
within the Premises without the written consent of
Landlord.  Notwithstanding anything to the contrary contained in this
Lease, in the event Tenant operates equipment requiring electrical usage in
excess of that which is customary for the operation of standard general office
use equipment, at Landlord's option, costs allocable to such non-Building Hours
electrical use and/or excess electrical use (as equitably determined by
Landlord) shall be reimbursed by Tenant to Landlord, as additional rent, on a
monthly or other periodic basis as reasonably determined by Landlord, within
fifteen (15) days following Landlord's submission to Tenant of an invoice
therefor.

       

      (iv) The
Premises shall be provided with water for drinking fountain, HVAC and, if
applicable, restroom and/or kitchen uses.

       

      (v) Landlord
shall provide janitor service to the Premises after or before Building business
hours on a five (5) days per week basis, excluding Holidays.  Tenant
shall pay to Landlord, as additional rent within fifteen (15) days following
receipt of invoice therefor from Landlord, the cost of (1) any extra janitorial
service required due to the nature of Tenant's improvements, Alterations,
fixtures and/or personal property being other than that which is customary for
general office use, and/or (2) the removal of any of Tenant's refuse and rubbish
to the extent that the same significantly exceeds the refuse and rubbish usually
attendant upon the use of the Premises for general office use.

       

      (vi) Landlord
shall provide certain Project security services, which may include, without
limitation, during weekday Building Hours, a receptionist located at office of
the Building to monitor the security cameras throughout the Project, and evening
guard service to monitor the exterior areas of the Project.  Tenant,
at its own cost may provide any additional security services required for
Tenant's Premises.

       

      (b) In the
event that Tenant desires any other service in amounts exceeding the services
described herein as reasonably determined by Landlord, Tenant shall pay Landlord
the actual out of pocket costs of providing such additional services, plus a
reasonable administrative fee, as Additional Rent.

       

      (c) Except as
provided in Section
14(d) below, Landlord's failure to furnish any of such utilities and
services, whether caused by accident, breakage or repairs, strikes, lockouts or
other labor disturbances or labor disputes of any such character, governmental
regulation, moratorium or other governmental action, inability despite the
exercise of reasonable diligence to obtain such utilities or services or
otherwise shall not result in any liability to Landlord nor shall Tenant be
entitled to any abatement or reduction of Rent, nor shall Landlord be deemed to
have evicted Tenant, nor shall Tenant be relieved from the performance of any
covenant, obligation or agreement in this Lease because of any such
failure.  In the event of any stoppage or interruption of services or
utilities, Landlord shall use reasonable diligence to attempt to resume such
services or utilities.

       

      (d) Notwithstanding
anything to the contrary contained in this Lease, during the Term of the Lease,
if Tenant is actually prevented from using all or a material portion of the
Premises as a result of (i) an interruption in essential utility services to the
Premises which is the fault of Landlord or Landlord's employees, agents or
contractors, or (ii) Landlord's actions in entering upon the Premises (other
than in exercising any remedy or curing any Tenant failure to perform in
accordance with this Lease), and which prevention from use is not cured by
Landlord within five (5) consecutive business days following Landlord's receipt
of written notice thereof from Tenant stating Tenant's intent to receive an
abatement, then Monthly Base Rent and Tenant's obligation for payment of
Tenant's Expenses Excess shall thereafter be equitably abated based upon the
portion of the Premises which Tenant is so prevented from using and Tenant's
obligation for payment of parking fees shall also be abated based upon the
reduction in use of parking attributable to such prevention from use of all or a
portion of the Premises, until and to the extent that Tenant is no longer so
prevented from using such portion of the Premises as a result of the applicable
item described in clause (i) or (ii) above.  Notwithstanding the
foregoing, the provisions of Section 18 below and
not the provisions of this subsection (d) shall govern in the event of casualty
damage to the Premises or Project and the provisions of Section 19 below and
not the provisions of this subsection (d) shall govern in the event of
condemnation of all or a part of the Premises or Project.

       

      
        
          	
                  15. 

                	
                  INDEMNIFICATION.

                

        

      

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

        Tenant
shall be liable for, and agrees, to the maximum extent permissible under
applicable Laws, to promptly indemnify, defend and hold harmless Landlord, its
affiliated entities and their respective members, partners, officers, directors,
employees, agents, successors and assigns (collectively, the "Landlord Indemnified
Parties"), from and against, any and all claims, damages, judgments,
suits, causes of action, losses, liabilities, penalties, fines, expenses and
costs, including, without limitation, reasonable attorneys' fees and expenses
(collectively, "Indemnified Claims"),
arising or resulting from (i) any act or omission of Tenant, its subtenants
and/or assignees and their respective agents, employees, representatives,
licensees, contractors and/or invitees (collectively, the "Tenant Parties");
(ii) the use of the Premises and Common Areas, conduct of Tenant's business by
Tenant or any Tenant Parties, or any other activity, work or thing done,
permitted or suffered by Tenant or any Tenant Parties, in or about the Premises,
or done or permitted by Tenant or any Tenant Parties in or about the Building or
elsewhere within the Project; and/or (iii) any default by Tenant of any
obligations on Tenant's part to be performed under the terms of this
Lease.  In case any action or proceeding is brought against Landlord
or any Landlord Indemnified Parties by reason of any such Indemnified Claims,
Tenant, upon notice from Landlord, agrees to promptly defend the same at
Tenant's sole cost and expense by counsel approved in writing by Landlord, which
approval shall not be unreasonably withheld.  The provisions of this
Section 15
shall survive the expiration of the Term or sooner termination of this
Lease.

       

      
        
          	
                  16. 

                	
                  DAMAGE
      TO TENANT'S PROPERTY AND
WAIVER».

                

        

      

       

        Notwithstanding
anything contained in this Lease to the contrary, subject to the provisions of
Section 14(d),
Landlord or its agents and employees shall not be liable for (a) loss or
damage to any property by theft or otherwise, or (b) any injury or damage
to person or property resulting from fire, explosion, falling plaster, steam,
gas, electricity, water or rain which may leak from any part of the Building or
from pipes, appliances or plumbing work therein or from the roof, street,
sub-surface or from any other place or resulting from dampness or any other
cause whatsoever, except to the extent (i) resulting from the gross negligence
or wilful misconduct of Landlord or its contractors, agents, servants or
employees or breach of this Lease by Landlord and (ii) not covered by the
insurance maintained by Tenant (or which would not have been so covered if
Tenant had maintained the insurance required to be maintained by Tenant pursuant
to this Lease).  Landlord or its agents shall not be liable for
interference with light or other similar intangible property interests. 
Tenant shall give prompt notice to Landlord in case of fire or accidents in the
Premises or the Building, and of defects therein or in the fixtures or equipment
located therein.

       

      
        
          	
                  17. 

                	
                  INSURANCE»

                

        

      

       

      .

       

      (a) Tenant
shall, during the Term hereof, at its sole cost and expense, keep in full force
and effect the following insurance:

       

      (i) All Risk
insurance (including a vandalism and malicious mischief endorsement and
sprinkler leakage coverage) upon all of Tenant's personal property, trade
fixtures, furniture and equipment in the Premises, in an amount not less than
one hundred percent (100%) of the full replacement cost thereof.

       

      (ii) Commercial
general liability insurance coverage, including personal injury, bodily injury,
broad form property damage, automobile, Premises operations hazard, contractual
liability (covering the indemnity contained in Section 15), and
products and completed operations liability, with a combined single limit of not
less than Two Million Dollars ($2,000,000.00).  Such insurance shall
name Tenant as named insured thereunder and shall name Landlord and such of
Landlord's Lienholders and ground lessors as are designated by Landlord, each as
additional insureds thereunder, all as their respective interests may appear,
shall contain a cross liability endorsement, and shall be primary and
non-contributing with respect to any insurance maintained by
Landlord.  Such liability insurance shall insure Tenant and each
additional insured for (1) the actions of Tenant and/or any of Tenant's
employees, agents, representatives, contractors and/or invitees, (2) Alterations
to, and occurrences in, the Premises, and (3) the use or operation of the
Premises.  Landlord shall have the right, from time to time, to
require an increase in such liability insurance limit if consistent with then
standard industry practices for prudent risk management by a tenant of
comparably-sized premises within Comparable Buildings.

       

      (iii) Workers'
Compensation and Employer's Liability Insurance in form and amounts as required
by applicable law.

       

      (iv) Any other
form or forms of insurance as Landlord and Landlord's Lienholders may reasonably
require from time to time, in form, in amounts, and for insurance risks against
which a prudent tenant of a comparable size and in a comparable business would
protect itself given the economic feasibility of such insurance and consistent
with then industry standards for prudent risk management by tenants of
comparably-sized premises in Comparable Buildings.

       

      The
minimum limits of insurance set forth in this Section 17(a) are not
intended to limit the liability of Tenant under this
Lease.  Notwithstanding any provision of this Lease to the contrary,
the obligations of Tenant to provide increased or new insurance under Sections 17(a)(ii)
and (iv) above,
shall be limited to the extent the same is then customarily provided by
comparable tenants of comparably sized premises and having a comparable use in
Comparable Buildings and is then reasonably available on a commercially
reasonable basis at a reasonable cost.  All policies of insurance
maintained by Tenant under this Section 17(a) shall
be taken out with insurance companies holding a General Policyholders Rating of
"A-" and a Financial Rating of "VIII" or better, as set forth in the most
current issue of Best's Insurance Reports.  As soon as practicable
after the placing of the required insurance, but prior to the date Tenant takes
possession of all or part of the Premises, Tenant shall deliver to Landlord
certificates evidencing the existence of the amounts and forms of coverage
required hereunder.  No such policy shall be cancelable or reducible
in coverage except after at least thirty (30) days prior written notice to
Landlord.  Tenant shall, within thirty (30) days prior to the
expiration of such policies, furnish Landlord with certificates of renewals or
binders thereof; provided that if Tenant fails to furnish the same, Landlord
may, following ten (10) days' notice to Tenant, order such insurance and charge
the reasonable cost thereof to Tenant.  If Landlord obtains any
insurance that is the responsibility of Tenant under this Section 17(a),
Landlord shall deliver to Tenant a written statement setting forth the cost of
any such insurance and showing in reasonable detail the manner in which it has
been computed and Tenant shall promptly remit said amount to Landlord, as
additional rent.  Tenant may satisfy its insurance obligations under
this Lease by blanket, umbrella and/or, as to liability coverage in excess of
One Million Dollars ($1,000,000), excess liability coverage, so long as the
coverage afforded under the applicable policy is not reduced or diminished as a
result thereof.

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      (b) During
the Term, Landlord shall carry the following insurance:

       

      (i) All Risk
insurance (including a vandalism and malicious mischief endorsement and
sprinkler leakage coverage, and also covering such other risks as Landlord or
Landlord's lender may require) upon the Project (but excluding any property
which Tenant is obligated to insure under Sections 17(a) above)
in an amount not less than ninety percent (90%) of the full replacement cost
thereof (excluding footings, foundations and excavation), and including
commercially reasonable rental loss coverage for losses covered by such
insurance policy.  Such insurance policy shall include coverage of the
Tenant Improvements (as modified from time to time by Tenant's Alterations) and
the parties shall reasonably cooperate to allow for proper valuation thereof for
insurance purposes; provided, however, that the cost of such insurance allocable
to Tenant Improvements (as modified from time to time by Alterations) in the
Premises in excess of Twenty-Five Dollars ($25.00) per square foot of Usable
Area (as reasonably determined by Landlord) shall not be included in Operating
Expenses, but instead shall be reimbursed by Tenant to Landlord, as Additional
Rent, within thirty (30) days following Landlord's submission to Tenant of a
statement therefor together with a calculation of the amount of such
costs.  Such insurance policy or policies shall name Landlord as a
named insured.  The deductible under the All Risk policy shall not
exceed such amount as Landlord determines to be appropriate given prudent risk
management practices.

       

      (ii) Commercial
general liability insurance coverage, including personal injury, bodily injury,
broad form property damage, automobile, Premises operations hazard, contractual
liability (covering the indemnity contained in Section 15), and
products and completed operations liability, with a combined single limit of not
less than Five Million Dollars ($5,000,000.00).

       

      Landlord
may satisfy its insurance obligations under this Lease by blanket, umbrella
and/or, as to liability coverage in excess of One Million Dollars ($1,000,000),
excess liability coverage, so long as the coverage afforded under the applicable
policy is not reduced or diminished as a result thereof.

       

      (c) Other
than as customary for general office use, Tenant will not keep or use, sell or
offer for sale, in or upon the Premises any article which may be prohibited by
any insurance policy then in force covering the Building or the
Project.  If Tenant's occupancy or business in or upon the Premises,
whether or not Landlord has consented to the same, includes such extraordinary
activities for a first-class office building that the same results in any
increase in premiums for the insurance periodically carried by Landlord with
respect to the Building or the Project, Tenant shall pay as Additional Rent any
such increase in premiums within thirty (30) days after being billed therefor by
Landlord.  In determining whether increased premiums are a result of a
change in Tenant's use of the Premises, a schedule issued by the organization
computing the insurance rate on the Project showing the various components of
such rate, shall be conclusive evidence of the several items and charges which
make up such rate.

       

      (d) All
policies of property damage insurance required hereunder shall include a clause
or endorsement denying the insurer any rights of subrogation against the other
party to the extent rights have been waived by the insured before the occurrence
of injury or loss, if same are obtainable without unreasonable
cost.  To the extent such a waiver of subrogation is obtainable,
neither Landlord nor Tenant shall be liable to the other for any damage caused
by fire or any of the risks insured against or required to be insured against
under any insurance policy required by this Lease.  Landlord and
Tenant waive any rights of recovery against the other for injury or loss due to
risks covered by or required to be covered by such policies of property damage
insurance containing such a waiver of subrogation clause or endorsement to the
extent insurance proceeds cover the injury or loss.

       

      
        
          	
                  18. 

                	
                  DAMAGE
      OR DESTRUCTION»

                

        

      

       

      .

       

      (a) If the
Premises shall be destroyed by fire or other casualty so as to render all or a
portion of the Premises untenantable, then, for so long as Tenant is actually
not occupying all or a portion of the Premises as a result of such prevention
from use, Tenant shall be entitled to an abatement of Tenant's obligation for
payment of (i) Monthly Base Rent and Tenant's Expenses Excess, on a
proportionate basis to the extent that Tenant's use of the Premises is so
effectively prevented, and (ii) monthly parking fees, to the extent of the
reduction in use of parking attributable to such inability to use all or a
portion of the Premises; which abatement shall commence as of the date of the
casualty and continue during the period of such repair or reconstruction, until
such time as Tenant is no longer so effectively prevented from using the
Premises; provided, however, such Rent shall only abate to the extent of
insurance proceeds received by Landlord with respect thereto under any rental
loss insurance maintained by Landlord if such casualty is caused by Tenant or
any of Tenant's employees, agents, representatives or contractors.

       

      (b) Except
where Landlord or Tenant elects to terminate this Lease as hereinafter provided,
Landlord shall use reasonable diligence to repair any casualty to the Premises,
Building or Common Areas to the extent of available insurance proceeds plus any
funds delivered by Tenant to Landlord for purposes of performing such repairs
(as hereinafter provided), subject to delays and adjustment of insurance
proceeds (provided that Tenant shall be responsible for the repair of Tenant's
furniture, fixtures, equipment and personal property).  In the event
of the total destruction of the Premises or Project, or in the event of the
partial destruction of the Premises or Project which is the result of an event
not required to be covered by the insurance to be maintained by Landlord
pursuant to this Lease, or requiring repair for which Landlord is unable
(despite the exercise of commercially reasonable efforts) to obtain necessary
governmental permits or approvals without being subject to unreasonable expense
or condition, then Landlord shall have the right to elect to terminate this
Lease by written notice to Tenant delivered within ninety (90) days following
the occurrence of the casualty.  The proceeds from any insurance paid
by reason of damage to or destruction of the Project or any part thereof insured
by Landlord, shall belong to and be paid to Landlord.  Tenant shall
not be entitled to any compensation or damages from Landlord or Landlord's
insurance provider for loss in the use of the whole or any part of the Premises
and/or any inconvenience or annoyance by such damage, repair, reconstruction or
restoration.

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      (c) In the
event of any damage or destruction of all or any part of the Premises, Tenant
agrees to immediately (i) notify Landlord thereof, and (ii) deliver to Landlord
all property insurance proceeds received by Tenant with respect to any Tenant
Improvements in excess of Twenty-Five Dollars ($25.00) per square foot of Usable
Area and any Alterations, but excluding proceeds for Tenant's furniture,
fixtures, equipment and other personal property, whether or not this Lease is
terminated as permitted in this Section 18, and
Tenant hereby assigns to Landlord all rights to receive such insurance
proceeds.  If, for any reason (including Tenant's failure to obtain
insurance for the full replacement cost of any Tenant Improvements in excess of
Twenty-Five Dollars ($25.00) per square foot of Usable Area or any Alterations
from any and all casualties), Tenant fails to receive insurance proceeds
covering the full replacement cost of any Tenant Improvements in excess of
Twenty-Five Dollars ($25.00) per square foot of Usable Area and any Alterations
which are damaged, Tenant will be deemed to have self-insured the replacement
cost of such items, and upon any damage or destruction thereto, Tenant agrees to
immediately pay to Landlord the full replacement cost of such items, less any
insurance proceeds actually received by Landlord from Landlord's or Tenant's
insurance with respect to such items.

       

      (d) Notwithstanding
anything to the contrary contained herein, if the Premises is wholly or
partially damaged or destroyed within the final nine (9) months of the then
remaining Term of this Lease (as the same may theretofore have been extended
pursuant to this Lease), and if as a result of such damage or destruction Tenant
is, or reasonably will be, denied access or use of a material portion of the
Premises for the conduct of its business operations for a period of ninety (90)
consecutive days (or such shorter period as is then remaining in the Term),
Landlord or (provided such casualty damage was not caused by Tenant or any of
the Tenant Parties) Tenant may, at its option, by giving the other notice no
later than sixty (60) days after the occurrence of such damage or destruction,
elect to terminate the Lease as to the affected portion of the
Premises.

       

      (e) Notwithstanding
anything to the contrary contained in this Lease, in the event of material
casualty damage to the Project not resulting in termination of this Lease,
Landlord shall deliver written notice to Tenant within ninety (90) days
following such casualty damage or occurrence setting forth Landlord's good faith
estimate of the time required for completion of repair and/or restoration of the
Project, and if such estimated time exceeds one (1) year from the occurrence of
the casualty, Tenant may elect to terminate this Lease by written notice to
Landlord within fifteen (15) days following Tenant's receipt of such
notice.

       

      (f) Landlord
and Tenant hereby waive the provisions of any statutes (including, without
limitation, Sections 1932(2) and 1933(4) of the California Civil Code) or court
decisions which provide a party to a lease with a right to abatement of rent or
termination of the lease when leased property is damaged or destroyed and agree
that such event shall be exclusively governed by the terms of this
Lease.

       

      
        
          	
                  19. 

                	
                  EMINENT
      DOMAIN»

                

        

      

       

      .

       

      (a) If any
material portion of the Project shall be taken for any public or quasi-public
purpose by any lawful power or authority by exercise of the right of
appropriation, condemnation or eminent domain, or sold to prevent such taking to
such an extent as to render untenantable the entirety of the Premises or such a
material portion of the Premises that Tenant's operation from the remainder of
the Premises is not reasonably practicable as reasonably determined by the
parties, either party shall have the right to terminate this Lease effective as
of the date possession is required to be surrendered to said authority by
written notice to the other party by the effective date of such
taking.  Tenant shall not assert any claim against Landlord or the
taking authority for any compensation because of such taking, other than a claim
for any award attributable to the value of any personal property or trade
fixtures of Tenant which are taken, costs of Tenant's relocation, and Tenant
hereby assigns to Landlord all of Tenant's interest in, and Landlord shall be
entitled to receive, the entire amount of any other award without deduction for
any estate or interest of Tenant (including, without limitation, any award
attributable to the value of the remaining Term of this Lease).  If
neither Tenant nor Landlord so elects to terminate, Landlord shall, to the
extent of proceeds received, commence to restore the Premises to substantially
their same condition prior to such partial taking, and a proportionate allowance
shall be made to Tenant for the Monthly Base Rent and Tenant's obligation for
payment of Tenant's Expenses Excess corresponding to the time during which, and
to the part of the Premises of which, Tenant shall be so deprived on account of
such taking and restoration.  Nothing contained in this Section 19(a)
shall be deemed to give Landlord any interest in any award made to Tenant for
the taking of Tenant's personal property and trade fixtures or for Tenant's
costs of relocation.

       

      (b) In the
event of a taking of the Premises or any part thereof for temporary use,
(i) this Lease shall be and remain unaffected thereby and Rent shall not
abate, and (ii) Tenant shall be entitled to receive for itself such portion
or portions of any award made for such use with respect to the period of the
taking which is within the Term, provided that if such taking shall remain in
force at the expiration of the Term or earlier termination of this Lease, Tenant
shall then pay to Landlord a sum equal to the reasonable cost of performing
Tenant's obligations under Section 10(c)
with respect to surrender of the Premises and upon such payment shall be excused
from such obligations.  For purposes of this Section 19(b), a
temporary taking shall be defined as a taking for a period of twelve (12) months
or less.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      (c) Landlord
and Tenant hereby waive the provisions of any statutes (including, without
limitation, Section 1265.130 of the California Code of Civil Procedure) or court
decisions which provide a party to a lease with a right to abatement of rent or
termination of the lease when leased property is condemned or taken and agree
that such event shall be exclusively governed by the terms of this
Lease.

       

      
        
          	
                  20. 

                	
                  ASSIGNMENT
      AND SUBLETTING»

                

        

      

       

      .

       

      (a) Tenant
shall not voluntarily assign its interest in this Lease (an "assignment") or
sublease or permit occupancy by third parties of all or any part of the Premises
(a "sublease"),
without first obtaining Landlord's prior written consent, which consent shall
not be unreasonably withheld or delayed.  Tenant shall not under any
circumstances mortgage, pledge or otherwise transfer or encumber this Lease or
the Premises (except for an assignment or sublease pursuant to this Section
20).  Any assignment or sublease without Landlord's prior
written consent shall be voidable at Landlord's election and shall constitute a
default hereunder.  For purposes hereof, in the event Tenant is a
partnership, a withdrawal or change of the partners owning more than a
twenty-five percent (25%) interest in the partnership in one or more transfers,
or if Tenant is a corporation or limited liability company, any transfer of more
than fifty per cent (50%) of its stock or membership interests in one or more
transfers, or the transfer by the controlling shareholder or member of so much
of its stock or membership interest that it is no longer the controlling
shareholder or member, shall constitute a voluntary assignment and shall be
subject to the provisions of this Section 20; provided,
however, that the provisions of this sentence shall not apply if Tenant is a
publicly held corporation, the shares of stock in which are traded on a public
exchange.  Notwithstanding anything to the contrary contained herein,
Tenant shall have the right without Landlord's prior consent and without being
subject to Section
20(e) below, but upon not less than fifteen (15) days prior written
notice to Landlord, to assign this Lease or sublet the Premises to any entity
(i) controlling, controlled by or having fifty percent (50%) or more common
control with Tenant, or (ii) resulting from a merger or consolidation with
Tenant or acquiring all of the assets and/or stock of Tenant; provided that any
such entity shall have a have and control all assets of Tix 4 Tonight, Inc. and
shall assume the obligations and liabilities of Tenant under this Lease (any
such assignment or subletting permitted without the prior consent of Landlord is
referred to in this Lease as a “Permitted Transfer”
and any such assignee or subtenant under a Permitted Transfer is referred to in
this Lease as a “Permitted
Transferee”) and no such assignment or sublease shall in any manner
release Tenant from its primary liability under this Lease.

       

      (b) No
consent to an assignment or sublease shall constitute a further waiver of the
provisions of this Section 20.  Tenant
shall notify Landlord in writing of Tenant's intent to assign or sublease this
Lease, the name of the proposed assignee or subtenant, information concerning
the financial responsibility of the proposed assignee or subtenant and the
economic and other material terms of the proposed assignment or subletting, and
Landlord shall, within fifteen (15) days of receipt of such written notice, and
the financial responsibility information and such other information as may be
requested by Landlord concerning the proposed assignee or subtenant (such
request to be made, if at all, within ten (10) days of Tenant's initial request
for Landlord's consent and submission of the information set forth above), elect
one of the following:  (i) consent to such proposed assignment or
sublease; (ii) refuse such consent, which refusal shall be on reasonable
grounds; or (iii) terminate this Lease, such termination to be effective thirty
(30) days after receipt of such notice by Tenant.  If Landlord shall
exercise its termination right hereunder, Landlord shall have the right to enter
into a lease or other occupancy agreement directly with the proposed assignee or
subtenant, and Tenant shall have no right to any of the rents or other
consideration payable by such proposed assignee or subtenant under such other
lease or occupancy agreement, even if such rents and other consideration exceed
the rent payable under this Lease by Tenant.  Landlord shall have the
right to lease the Premises to any other tenant, or not lease the Premises, in
its sole discretion.  Landlord and Tenant specifically agree that
Landlord's right to terminate this Lease under clause (iii) above is a material
consideration for Landlord's agreement to enter into this Lease and such right
may be exercised in Landlord's sole and absolute discretion and no test of
reasonableness shall be applicable thereto.

       

      (c) Landlord
and Tenant agree, by way of example and not in limitation as to other reasonable
grounds for withholding consent and without in any manner limiting Landlord's
rights in the event of a proposed assignment or sublease, that it shall be
reasonable under this Lease and under any applicable law for Landlord to
withhold its consent to a proposed assignment or subletting should Landlord
determine that any of the following apply:  (i) the proposed
transferee's use of the Premises is inconsistent with the Permitted Use set
forth in Section
1(j) of this Lease; (ii) the proposed transferee is of a character or
reputation which is not consistent with the quality of the Building or Project;
(iii) the space to be subleased is not regular in shape with appropriate means
of ingress and egress suitable for normal leasing purposes; (iv) the proposed
transferee is a governmental agency or instrumentality thereof or a person or
entity (or an affiliate thereof) currently leasing or occupying space within the
Project or with whom Landlord is then negotiating for the lease or occupancy of
space within the Project; (v) Tenant is in default under this Lease at the time
Tenant requests consent to the proposed assignment or sublease; or (vi) the
proposed assignment or sublease is likely to result in more than a reasonable
and safe number of occupants per floor within the space proposed to be assigned
or sublet or is likely to result in insufficient visitor parking for the
Building.

       

      (d) Any
assignee of Tenant's interest in this Lease (whether or not under an assignment
requiring Landlord's consent) hereby agrees that (and at Landlord's option, if
Landlord's consent is required for such assignment pursuant to this Lease, it
shall be a condition to such assignment that Landlord receive an instrument
executed by such assignee and expressly enforceable by Landlord agreeing that)
such assignee assumes and agrees to be bound by all of the terms and provisions
of this Lease and to perform all of the obligations of Tenant
hereunder.  Any subtenant of all or any portion of the Premises
(whether or not under a subletting requiring Landlord's consent) hereby agrees
that (and, at Landlord's option, if Landlord's consent is required for such
sublease pursuant to this Lease, it shall be a condition to such sublease that
Landlord receive an instrument executed by such subtenant agreeing that) such
sublease is subject and subordinate to this Lease and to all mortgages or deeds
of trust; that Landlord may enforce the provisions of the sublease, including
(following the occurrence of any default by Tenant under this Lease which is not
cured within any applicable period for cure pursuant to Section 21 below)
collection of rent; that in the event of termination of this Lease for any
reason, including, without limitation, a voluntary surrender by Tenant, or in
the event of any re-entry or repossession of the Premises by Landlord, Landlord
may, at its option, either (i) terminate the sublease, or (ii) take over all of
the right, title and interest of Tenant, as sublandlord, under such sublease, in
which case such subtenant will attorn to Landlord, but that nevertheless
Landlord will not (1) be liable for any previous act or omission of Tenant under
such sublease, (2) be subject to any defense or offset previously accrued in
favor of the subtenant against Tenant, or (3) be bound by any previous
modification of any sublease made without Landlord's written consent, or by any
previous prepayment by subtenant of more than one month's rent.

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

       

      (e) In
connection with Landlord's grant of consent to an assignment or sublease as
required under the provisions of this Section 20,
Tenant shall pay Landlord's reasonable out-of-pocket attorneys' fees from
outside the Landlords’ office and processing costs incurred in giving such
consent.  In the event of any Permitted Transfer, assignment, or
sublease, Landlord shall receive as additional rent hereunder fifty percent
(50%) of Tenant's "Excess Consideration"
derived from such assignment or sublease.  If Tenant shall elect to
assign or sublet, in no event shall Tenant's monetary obligations to Landlord,
as set forth in this Lease, be reduced.  In the event of a sublease,
"Excess
Consideration" shall mean all rent, additional rent or other
consideration actually received by Tenant from such subtenant and/or actually
paid by such subtenant on behalf of Tenant in connection with the subletting in
excess of the rent, additional rent and other sums payable by Tenant under this
Lease during the term of the sublease on a per square foot basis if less than
all of the Premises is subleased, less the sum of Tenant's reasonable
out-of-pocket costs incurred in connection with such sublease for brokerage
commissions, reasonable attorneys' fees, the cost of any alterations or
improvements made for the benefit of such subtenant, and/or any free rent period
granted to such subtenant.  In the event of an assignment, "Excess Consideration"
shall mean key money, bonus money or other consideration paid by the assignee to
Tenant in connection with such assignment, and any payment in excess of fair
market value for services rendered by Tenant to assignee or for assets,
fixtures, inventory, equipment, or furniture transferred by Tenant to assignee
in connection with such assignment, less the sum of Tenant's reasonable
out-of-pocket costs incurred in connection with such assignment for brokerage
commissions, reasonable attorneys' fees, the cost of any alterations or
improvements made for the benefit of such assignee and/or any free rent period
granted to such assignee.  If part of the Excess Consideration shall
be payable by the assignee or subtenant other than in cash, then Landlord's
share of such non-cash consideration shall be in such form as is reasonably
satisfactory to Landlord.

       

      (f) Notwithstanding
any permitted assignment or subletting (whether or not the same requires
Landlord's consent pursuant to this Section), Tenant shall at all times remain
directly, primarily and fully responsible and liable for all payments owed by
Tenant under this Lease and for compliance with all obligations under the terms
and conditions of this Lease.  Landlord's waiver or consent to any
assignment or subletting shall not relieve Tenant or any assignee or sublessee
from any obligation under this Lease whether or not accrued and Tenant shall at
all times remain directly, primarily and fully responsible and liable for all
payments owed by Tenant under this Lease and for compliance with all obligations
of Tenant under the terms and conditions of this Lease.

       

      
        
          	
                  21. 

                	
                  DEFAULT
      BY TENANT»

                

        

      

       

      .

       

      (a) The
occurrence of any one or more of the following events shall constitute a default
hereunder by Tenant:

       

      (i) The
failure by Tenant to make any payment of Rent as and when due where such failure
shall continue for a period of ten (10) days after written notice thereof from
Landlord to Tenant; provided however, that any such notice shall be in lieu of,
and not in addition to, any notice required under California Code of Civil
Procedure §1161 or any similar successor statute.

       

      (ii) The
failure by Tenant to observe or perform any of the express or implied covenants
or provisions of this Lease to be observed or performed by Tenant, other than as
specified in Section
21(a)(i), where such failure shall continue for a period of thirty (30)
days after written notice thereof from Landlord to Tenant; provided, however,
that any such notice shall be in lieu of, and not in addition to, any notice
required under California Code of Civil Procedure §1161 or any similar successor
statute; provided, further, that if the nature of Tenant's default is such that
more than thirty (30) days are reasonably required for its cure, then
Tenant shall not be deemed to be in default if Tenant shall promptly commence
such cure within such thirty (30) day period and thereafter continuously and
diligently prosecute such cure to completion.

       

      (iii) The
making by Tenant of any general assignment for the benefit of creditors; the
filing by or against Tenant of a petition to have Tenant adjudged a bankrupt or
a petition for reorganization or arrangement under any law relating to
bankruptcy (unless, in the case of a petition filed against Tenant, the same is
dismissed within sixty (60) days); 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 sixty (60) days; 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
sixty (60) days; or if this Lease shall, by operation of law or otherwise,
pass to any person or persons other than Tenant.

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

      (iv) The
abandonment of the Premises by Tenant, which for purposes of this Lease means
any absence by Tenant from the Premises for five (5) business days or longer
while failing to perform any other material obligations of Tenant under this
Lease.

       

      (b) In the
event of any such default by Tenant, in addition to any other remedies available
to Landlord at law or in equity, Landlord shall have the immediate option to
terminate this Lease and all rights of Tenant hereunder.  In the event
that Landlord shall elect to so terminate this Lease, then Landlord may recover
from Tenant:  (i) the worth at the time of award of any unpaid Rent
which had been earned at the time of such termination; plus (ii) 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; plus (iii)
the worth at the time of award of the amount by which the unpaid Rent for the
balance of the Term after the time of award exceeds the amount of such rental
loss that Tenant proves could be reasonably avoided; plus (iv) any other amount
necessary to compensate Landlord for all the detriment proximately caused by
Tenant's failure to perform Tenant's obligations under this Lease or which in
the ordinary course of things would be likely to result therefrom, specifically
including but not limited to, brokerage commissions and advertising expenses
incurred, expenses of remodeling the Premises or any portion thereof for a new
tenant, whether for the same or a different use, and any special concessions
made to obtain a new tenant, the unamortized value of any free rent, reduced
rent, free parking, reduced rate parking and any Tenant Improvement Allowance or
other costs or economic concessions provided, paid, granted or incurred by
Landlord pursuant to this Lease (which unamortized value shall be determined by
taking the total value of such concessions and multiplying such value by a
fraction, the numerator of which is the number of months of the Term not yet
elapsed as of the date on which the Lease is terminated, and the denominator of
which is the total number of months of the Lease Term); plus (v) at Landlord's
election, such other amounts in addition to or in lieu of the foregoing as may
be permitted from time to time by applicable law.

       

      As used
in Sections 21(b)(i) and
(ii) above, the
"worth at the time of
award" is computed by allowing interest at the Interest
Rate.  As used in Section 21(b)(iii)
above, the "worth at
the time of award" is 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%).

       

      (c) In the
event of any such default by Tenant, Landlord shall also have the remedy
described in California Civil Code Section 1951.4 (lessor may continue lease in
effect after lessee's breach and abandonment and recover rent as it becomes due,
if lessee has the right to sublet or assign, subject only to reasonable
limitations).  Accordingly, if Landlord does not elect to terminate
this Lease on account of any default by Tenant, Landlord may, from time to time,
without terminating this Lease, enforce all of its rights and remedies under
this Lease, including the right to recover all rent as it becomes
due.  In connection with the exercise of such remedy, any property of
Tenant may be removed and stored in a public warehouse or elsewhere at the cost
of and for the account of Tenant or disposed of in a reasonable manner by
Landlord.  No re-entry or taking possession of the Premises by
Landlord pursuant to this Section 21(c) shall
be construed as an election to terminate this Lease unless a written notice of
such intention is given to Tenant or unless the termination thereof be decreed
by a court of competent jurisdiction.

       

      (d) If
Landlord does not elect to terminate this Lease as provided above, Landlord may
either recover all Rent as it becomes due or relet the Premises or any part
thereof for the Term of this Lease on terms and conditions as Landlord in its
sole discretion may deem advisable with the right to re-enter the Premises to
make alterations and repairs to the Premises, and to enable Landlord to take
whatever other actions may be necessary to relet, protect or preserve the
Premises.  In the event that Landlord shall elect to so relet, then
Rent received by Landlord from such reletting shall be
applied:  first, to the payment of any costs incurred in connection
with any reletting (including, without limitation, costs of brokerage
commissions, attorneys' fees, improvement and/or moving allowances, and
alterations and/or repairs to the Premises); second, to the payment of any
indebtedness other than Monthly Base Rent due hereunder from Tenant to Landlord;
third, to the payment of Monthly Base Rent due and unpaid hereunder; and the
residue, if any, shall be held by Landlord and applied to payment of future Rent
as the same may become due and payable hereunder.  Should that portion
of such Rent received from such reletting during any month, which is applied to
the payment of Rent hereunder, be less than the Rent payable during that month
by Tenant hereunder, then Tenant shall pay such deficiency to Landlord
immediately upon demand therefore by Landlord.  Such deficiency shall
be calculated and paid monthly.  Tenant shall also pay to Landlord, as
soon as ascertained, any costs and expenses incurred by Landlord in such
reletting, including but not limited to brokerage commissions, or in making such
alterations and repairs not covered by the Rent received from such
reletting.

       

      (e) Tenant
hereby waives, for itself and all persons claiming by and under Tenant, all
rights and privileges which it might have under any present or future law to
redeem the Premises or to continue the Lease after being dispossessed or ejected
from the Premises.

       

      (f) If Tenant
fails to perform any covenant or condition to be performed by Tenant, Landlord
shall have the right (but not the obligation) to perform such covenant or
condition (i) immediately, in the event of an emergency situation of imminent
risk of personal injury or material property damage, or (ii) following Tenant's
failure to cure such failure to perform within the period provided for cure
after Tenant's receipt of written notice from Landlord pursuant to Section
21(a)(ii) above.  All reasonable costs incurred by Landlord in so
performing shall immediately be reimbursed to Landlord by Tenant, together with
interest at the Interest Rate computed from the due date.  Any
performance by Landlord of Tenant's obligations shall not waive or cure such
default.  All costs and expenses incurred by Landlord, including
reasonable attorneys' fees (whether or not legal proceedings are instituted), in
collecting Rent or enforcing the obligations of Tenant under the Lease shall be
paid by Tenant to Landlord upon demand.

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

       

      (g) All
rights, options and remedies of Landlord contained in this Lease shall be
construed and held to be cumulative, and no one of them shall be exclusive of
the other, and Landlord shall have the right to pursue any one or all of such
remedies or any other remedy or relief which may be provided by law, whether or
not stated in this Lease.

       

      (h) Any
agreement by Landlord for free or abated rent or other charges applicable to the
Premises, or for the giving or paying by Landlord to or for Tenant of any cash
or other bonus, inducement or consideration for Tenant’s entering into this
Lease, all of which concessions are hereinafter referred to as “Inducement
Provisions” shall be deemed conditioned upon Tenant’s full and faithful
performance of all of the terms, covenants and conditions of this Lease to be
performed or observed by Tenant during the term hereof as the same may be
extended.  Upon the occurrence of a default of this Lease by Tenant
beyond any applicable cure period provided in this Section 21, any such
Inducement Provision shall automatically be deemed deleted from this Lease and
of no further force or effect, and any rent, other charge, bonus, inducement or
consideration theretofore abated, given or paid by Landlord under such an
Inducement Provision shall be immediately due and payable by Tenant to Landlord,
and recoverable by Lessor, as additional rent due under this Lease,
notwithstanding any subsequent cure of said default by Tenant.  The
acceptance by Landlord of rent or the cure of the default which initiated the
operation of this Section shall not be deemed a waiver by Landlord of the
provisions of this Section unless specifically so stated in writing by Landlord
at the time of such acceptance.

       

      
        
          	
                  22. 

                	
                  DEFAULT
      BY LANDLORD»

                

        

      

       

      .

       

      (a) Unless a
shorter time period is herein specified, Landlord shall not be in default
hereunder unless Landlord fails to perform the obligations required of Landlord
within a reasonable time, but in no event later than thirty (30) days after
written notice by Tenant to Landlord 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 performance,
then Landlord shall not be in default if Landlord commences performance within
such thirty (30) day period and thereafter continuously and diligently
prosecutes the same to completion.

       

      (b) In the
event of any default on the part of Landlord, Tenant will give notice by
registered or certified mail to any Lienholder of Landlord whose name and
address have previously been furnished to Tenant in writing, and shall offer
such Lienholder a reasonable opportunity to cure the default, including time to
obtain possession of the Premises by power of sale or a judicial foreclosure, or
in the event of a ground lessor, by appropriate judicial action, if such should
prove necessary to effect a cure.

       

      
        
          	
                  23. 

                	
                  SUBORDINATION».

                

        

      

       

          If
Tenant has received non-disturbance agreements from all Lienholders in form and
substance reasonably acceptable to said Lienholders (collectively the “Non-Disturbance
Agreements”), this Lease shall be subject and subordinate at all times to
(a) all ground leases which may now exist or hereafter be executed
affecting the Building, the Project, or the land upon which the Building and
Project are situated, or both, and any and all amendments, renewals,
modifications, supplements and extensions thereof; and (b) the lien of any
mortgage or deed of trust which may now exist or hereafter be executed, and any
and all advances made thereunder, and interest thereon and all modifications,
renewals, supplements, consolidations and replacements
thereof.  Notwithstanding the foregoing, Tenant acknowledges that
Landlord shall have the right to subordinate or cause to be subordinated any
such ground leases or any such liens to this Lease.  In the event that
any ground lease terminates for any reason or any mortgage or deed of trust is
foreclosed or a conveyance in lieu of foreclosure is made for any reason, Tenant
shall, so long as Tenant has received the Non-Disturbance Agreements, and
notwithstanding any subordination, attorn to and become the tenant of the
successor in interest to Landlord, at the option of such successor in
interest.  Tenant shall execute and deliver, upon reasonable prior
notice from Landlord, any additional documents in such form as is designated by
Landlord evidencing the priority or subordination of this Lease with respect to
any such ground leases or the lien of any such mortgage or deed of
trust.  Landlord shall use commercially reasonable efforts to obtain
from any Lienholder to whose mortgage, deed of trust or ground lease this Lease
is hereafter subordinated, an agreement of non-disturbance on such Lienholder's
standard form for the benefit of Tenant.  For purposes of this Lease,
a "Lienholder"
shall mean any mortgagee under a mortgage, beneficiary under a deed of trust, or
lessor under a master lease or ground lease, encumbering all or a portion of the
Project.

       

      
        
          	
                  24. 

                	
                  ESTOPPEL
      CERTIFICATE»

                

        

      

       

      .

       

      (a) Within
ten (10) business days following any written request which Landlord may make
from time to time, Tenant shall execute and deliver to Landlord a statement, in
a form reasonably satisfactory to Landlord, certifying:  (i) the
date of commencement of this Lease; (ii) the fact that this Lease is
unmodified and in full force and effect (or, if there have been modifications
hereto, that this Lease is in full force and effect, as modified, and stating
the date and nature of such modifications); (iii) the date to which the
Monthly Base Rent and other sums payable under this Lease have been paid;
(iv) that, to Tenant's knowledge, there are no current defaults under this
Lease by either Landlord or Tenant except as specified in such statement; and
(v) such other matters reasonably requested by Landlord.  Any
statement delivered pursuant to this Section 24 may
be relied upon by any existing or prospective mortgagee, beneficiary,
encumbrancer, transferee or purchaser of the interest of Landlord in the
Project, Premises or this Lease (without knowledge to the
contrary).  Unless required by a Lienholder, Tenant shall not be
subject to the requirements of this Section more than one (1) time during any
twelve (12) month period.

       

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

       

      (b) Unless
Landlord has knowledge to the contrary, if Tenant fails to deliver such
statement within such ten (10) day period, such failure shall be conclusive upon
Tenant (i) that this Lease is in full force and effect, without
modification except as may be represented by Landlord, (ii) that there are
no uncured defaults in Landlord's performance, and (iii) that not more than
one (1) monthly installment of Monthly Base Rent has been paid in
advance.

       

      
        
          	
                  25. 

                	
                  DEFINITION
      OF LANDLORD».

                

        

      

       

        The
term "Landlord"
as used in this Lease, so far as covenants or obligations on the part of
Landlord are concerned, shall be limited to mean and include only the owner or
owners, at the time in question, of the fee title to, or a lessee's interest in
a ground lease of, the Project.  In the event of any transfer or
assignment of such title or leasehold interest and the assumption in writing of
Landlord's remaining obligations under this Lease by the transferee or assignee,
Landlord herein named (and in case of any subsequent transfers or conveyances,
the then grantor) shall be automatically freed and relieved from and after the
date of such transfer, assignment or conveyance of all liability respecting the
performance of any covenants or obligations on the part of Landlord contained in
this Lease thereafter to be performed.  Landlord may transfer its
interest in the Premises without the consent of Tenant and such transfer or
subsequent transfer shall not be deemed a violation on Landlord's part of any of
the terms and conditions of this Lease.

       

      
        
          	
                  26. 

                	
                  PARKING»

                

        

      

       

      .

       

      (a) Tenant
shall be entitled to the number of parking passes indicated in Section 1(k), subject
to payment of the then prevailing monthly parking fee as established by
Landlord.   Each parking pass shall entitle the holder thereof to
one unreserved parking space within those portions of the Common Areas as may be
provided by Landlord from time to time for the purpose of parking motor
vehicles, provided that such Common Area parking shall be unreserved and may be
provided by tandem or stacked parking (which may be for two (2) or three (3)
cars), provided that an attendant is available to coordinate such
parking.  Monthly parking fees per parking pass for unreserved parking
are presently Seventy-Five Dollars ($75.00) per month per pass (which includes
all applicable taxes and/or assessments), and are subject to adjustment by
Landlord; provided that the monthly fees shall not increase by more than five
percent (5%) annually on a cumulative basis and only as part of a general
increase in rates applicable to tenants in the Building .  Monthly
parking fees shall be payable monthly in advance prior to the first day of each
calendar month.  Landlord may assign any unreserved and unassigned
parking spaces and/or make all or a portion of such spaces preferred and/or
reserved, if it determines in its reasonable discretion that it is necessary for
orderly and efficient parking.  Visitor parking rates shall be at
posted rates.  At Landlord's option, visitor parking shall be
monitored by a parking attendant.  Tenant shall not use any spaces
which have been specifically assigned by Landlord including without limitation
spaces assigned for uses such as visitor parking or which have been designated
by governmental entities with competent jurisdiction as being restricted to
certain uses.  Tenant hereby agrees to comply with all Laws relating
to parking including without limitation, the payment of all parking charges and
costs for all of its employees, visitors and invitees, whether by validation or
otherwise.

       

      (b) It is
understood that a system of charges for parking (including the parking spaces to
which Tenant is entitled pursuant to Section 1(k)) and
rules and regulations with respect to parking may be established and amended by
Landlord, in Landlord's reasonable discretion, from time to time.  The
use by Tenant and its employees, visitors and invitees of the parking facilities
of the Project shall be on the terms and conditions set forth herein as well as
in the established parking rules and regulations.  Landlord shall not
be responsible to Tenant for the violation or non-performance by any other
tenant or occupant of the Project of any of the established parking rules and
regulations.  Tenant shall not permit or allow any vehicles that
belong to or are controlled by Tenant or Tenant's employees to be loaded,
unloaded or parked in areas other than those designated by Landlord for such
activities.  If Tenant permits or allows any of the prohibited
activities described herein and in the established parking rules and
regulations, 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 immediately
payable upon demand by Landlord and/or to rescind the parking rights of the
offender.

       

      (c) Parking
areas may be leased by, added to, substituted for, enlarged or established by
Landlord for parking and any such addition to, or substitution for, a then
parking area or any new parking area so established by Landlord for the purpose
of use under this Section 26(c) shall
during the time of their respective use under the provisions of this Section 26 be
considered as part of the parking area and shall be subject to all of the
provisions of this Section
26.

       

      (d) As part
of Tenant’s required parking spaces, Tenant shall be entitled to two (2)
reserved parking spaces at the current prevailing monthly rate of $195.00 per
space, subject to adjustment by Landlord; provided that the monthly fees shall
not increase by more than five percent (5%) annually on a cumulative basis and
only as part of a general increase in rates applicable to tenants in the
Building.  Tenant shall be permitted to install and maintain, at its
sole cost and expense, a protective covering over such spaces upon Landlord’s
prior written approval of the design and installation criteria for such
covering, which approval may be withheld in Landlord’s sole
discretion.

       

      
        
          	
                  27. 

                	
                  SIGNAGE».

                

        

      

       

        Subject
in all events to applicable Laws and any other restrictions of record or to
which the Project is subject, Tenant shall be entitled to (i) Building standard
identification of Tenant and its employees in no more than two (2) lines upon
the common Building lobby directory board sign, at Landlord’s sole cost and
expense; and (ii) Building standard identification of Tenant by name upon the
main entrance door to the Premises, at Landlord’s sole cost and
expense.  Any changes to the foregoing shall be at Tenant’s sole cost
and expense.  The exact location, size, materials, coloring and
lettering of all Tenant signage shall be subject to Landlord's prior written
approval, which approval shall not be unreasonably withheld.

       

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

       

      
        
          	
                  28. 

                	
                  NOTICES».

                

        

      

       

        All
notices, demands, consents and approvals which may or are required to be given
by either party to the other hereunder shall be in writing and shall be either
served personally, or sent by overnight courier, or sent by registered or
certified mail, return receipt requested with postage prepaid, as
follows:  if to Tenant, addressed at the address designated in Section 1(a), or if
to Landlord, at the address designated in Section 1(b), or to
such other place as the party to be notified may from time to time designate by
at least fifteen (15) days' notice to the other party.  Such notices,
demands, consents and approvals shall be deemed sufficiently served or given for
all purposes hereunder, unless otherwise specified in this Lease, either (a) if
personally served, upon such service, (b) if sent by overnight courier providing
receipt of delivery, the following business day, or (c) if mailed, two (2)
business days after the time of mailing or on the date of receipt shown on the
return receipt, whichever is earlier.

       

      
        
          	
                  29. 

                	
                  HOLDING
      OVER».

                

        

      

       

        If
Tenant holds over in the Premises after the expiration of the Term or earlier
termination of this Lease, Tenant shall become a tenant at sufferance only,
subject to the provisions of this Lease, except that Rent during such holding
over shall equal one hundred fifty percent (150%) of the Rent in effect
immediately prior to such expiration or termination.  Acceptance by
Landlord of Rent after such expiration or earlier termination shall not result
in a renewal or extension of this Lease.  If Tenant fails to surrender
the Premises upon the expiration of the Term or earlier termination of this
Lease despite demand to do so by Landlord, Tenant shall indemnify, defend and
hold harmless Landlord from and against any and all claims, demands, losses,
liabilities, costs and/or expenses (including, without limitation, reasonable
attorneys' fees and expenses) arising as a result thereof, including, without
limitation, any claim made by any succeeding tenant founded on or resulting from
such failure to surrender.

       

      
        
          	
                  30. 

                	
                  QUIET
      ENJOYMENT».

                

        

      

       

        Landlord
covenants and agrees with Tenant that upon Tenant paying the Rent required under
this Lease and paying all other charges and performing all of the covenants and
provisions on Tenant's part to be observed and performed under this Lease,
Tenant shall and may peaceably and quietly have, hold and enjoy the Premises in
accordance with and subject to the terms of this Lease and existing matters of
record.

       

      

       

      
        
          	
                  31. 

                	
                  BROKERS».

                

        

      

       

        Landlord
shall be responsible for the payment of a commission owing to Landlord's Broker
and Tenant's Broker (if any) specified in Section 1(l)
(collectively, the "Brokers") in
connection with this Lease, to the extent set forth in separate written
agreement with the Brokers.  Landlord and Tenant each represent and
warrant that it has had no dealings with any real estate broker or agent in
connection with the negotiation of this Lease, except for the Brokers and that
it knows of no other real estate broker, agent or finder who is or might be
entitled to a commission or fee in connection with this Lease.  In the
event of any claim for broker's or finder's fees or commissions in connection
with this Lease in excess of that described in the first sentence of this
Section, Landlord shall indemnify, hold harmless and defend Tenant from and
against any and all liability, claims, demands, damages and costs (including,
without limitation, reasonable attorneys' fees and other litigation expenses) on
account of such claim if it shall be based upon any statement, representation or
agreement claimed to have been made by Landlord and Tenant shall indemnify, hold
harmless and defend Landlord from and against any and all liability, claims,
demands, damages and costs (including, without limitation, reasonable attorneys'
fees and other litigation expenses) on account of such claim if it shall be
based upon any statement, representation or agreement claimed to have been made
by Tenant. 

       

      
        
          	
                  32. 

                	
                  RIGHT
      OF FIRST OFFER.»

                

        

      

       

           Landlord
grants to Tenant a right of first offer (“First-Offer Right”)
during the Initial Term with respect to any space in the Building which is
adjacent to the Premises (“First-Offer
Space”).   Tenant’s First-Offer Right shall be on the
terms and conditions set forth in this Section.

       

      (a)           The
First-Offer Right shall begin only after the expiration or earlier termination
of the following leases (“Superior Leases”),
including any renewal or extension of the Superior Leases (whether or not such
renewal or extension is under an express written provision in a Superior Lease
or consummated under a lease amendment or new lease):

       

      (i)           Any
lease existing as of the Commencement Date of this Lease with respect to any
portion of the First-Offer Space; and

       

      (ii)           With
respect to any portion of the First-Offer Space that is not subject to a lease
as of the Commencement Date of this Lease, the first lease pertaining to each
such particular First-Offer Space entered into by Landlord after the
Commencement Date of this Lease.

       

      In
addition, the First-Offer Right shall be subordinate and secondary to all rights
of expansion, rights of first refusal, rights of first offer, or similar rights
granted prior to the execution of this Lease to other tenants of the
Building.  The rights described in this subsection shall be known
collectively as “Superior Rights.”

       

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

       

      (b)           Landlord
shall provide Tenant with written notice (“First-Offer Notice”)
from time to time when Landlord determines that any First-Offer Space will be
available for lease to third parties, so long as no holder of a Superior Right
desires to lease the First-Offer Space.  Landlord shall provide the
First-Offer Notice to Tenant within seven (7) months before the First-Offer
Space will be available for lease.  The First-Offer Notice shall
describe the First-Offer Space that will become available for lease (“Specific First-Offer
Space”) and shall state the material terms under which Landlord intends
to offer such space to other prospective tenants.

       

      (c)           If
Tenant wishes to exercise Tenant’s First-Offer Right with respect to the
Specific First-Offer Space, Tenant shall, within ten (10) business days after
delivery of the First-Offer Notice to Tenant, deliver notice to Landlord of
Tenant’s intention to exercise its First-Offer Right with respect to the
Specific First-Offer Space.  Tenant must elect to exercise its
First-Offer Right, if at all, only with respect to all of the space offered by
Landlord to Tenant at any particular time, and Tenant may not elect to lease
only a portion of that space.  Thereafter, Tenant shall execute and
delivery to Landlord an amendment to this Lease (“First Offer Amendment”) within
ten (10) days after the receipt of the same, which First Offer Amendment shall
be limited to confirming the terms set forth in this Section 32.

       

      (d)           If
tenant does not exercise its First-Offer Right within the response period
specified in subsection (c), the First-Offer Right shall terminate for the
Specific First-Offer Space and Landlord shall be free to lease that space to
anyone on any terms at any time during the Lease Term, without any obligation to
provide Tenant with a further right to lease that space.

       

      (e)           The
First-Offer Right shall be personal to the originally named Tenant and shall be
exercisable only by the originally named Tenant (and not any assignee,
sublessee, or other transferee of Tenant’s interest in this
Lease).   The originally named Tenant may exercise the
First-Offer Right only if that Tenant occupies the entire Premises as of the
date of the First-Offer Notice.  Tenant shall not have the right to
lease First-Offer Space if Tenant is in default under this Lease as of the date
of the attempted exercise of the First-Offer Right by Tenant or (at Landlord’s
option) as of the scheduled date of delivery of the Specific First-Offer Space
to Tenant.

       

      (f)           If
Tenant timely and validly exercises the First-Offer Right, Landlord shall
deliver the Specific First-Offer Space to tenant on a date selected by Landlord
(“Delivery
Date”) that is no sooner than the first day of the first (1st) full
calendar month and no later than the last day of the sixth (6th) full
calendar month of the initial lease term for the Specific First-Offer
Space.  Landlord shall not be liable to Tenant or otherwise be in
default under this Lease if Landlord is unable to deliver the Specific
First-Offer Space to Tenant on the projected Delivery Date due to the failure of
any other tenant or other occupant to timely vacate and surrender to Landlord
the Specific First-Offer Space or any portion of it.

       

      (g)           If
Tenant timely and validly exercises the First-Offer Right and timely executes
the First Offer Amendment, then, beginning on the Delivery Date and continuing
for the balance of the Lease Term (including any extensions):

       

      (i)           The
Specific First-Offer Space shall be part of the Premises under this Lease (so
that the term “Premises”) in this Lease shall refer to the space in the Premises
immediately before the Delivery Date plus the Specific First-Offer Space);
and

       

      (ii)           Tenant’s
Percentage, as defined in Section 6(a)(i) of this Lease, shall be adjusted in
accordance with Section 6(a)(i) of this Lease to reflect the
increased  Rentable Area of the Premises.

       

      Tenant’s
lease of the Specific First-Offer Space shall be on the same terms and
conditions as affect the original Premises from time to time, except as
otherwise provided in this Section.  Rent and other economic terms
applicable to the Specific First-Offer Space shall be equal to the Fair Market
Rental Rate, as defined in Section 3(b) of this Lease..  Tenant’s
obligation to pay Rent with respect to the Specific First-Offer Space shall
begin on the Delivery Date.  The Specific First-Offer Space shall be
leased to Tenant in its “as-is” condition, and Landlord shall not be required to
construct any improvements in, or contribute any improvement allowance for, the
Specific First-Offer Space.

       

      (h)           If
Tenant timely and validly exercises the First-Offer Right and timely
executes the First Offer Amendment, Landlord and Tenant shall, within fourteen
(14) days after Landlord’s delivery of the Specific First-Offer Space to Tenant,
confirm in writing the addition of the Specific First-Offer Space to the
Premises on the terms and conditions set forth in this Section.  The
written confirmation shall confirm: (i) the actual Delivery Date; (ii) the
Rentable and Useable Area of the Premises with the addition of the Specific
First-Offer Space; (iii) Tenant’s Percentage to reflect the increased Rentable
Area of the Premises with the addition of the Specific First-Offer Space; (iv)
the Rental commencement date for the Specific First-Offer Space; and (v) any
other term that either party requests be confirmed with respect to the Specific
First-Offer Space. In no event shall any failure or refusal of either Landlord
or Tenant to execute such confirmation affect the rights and obligations of
Landlord and Tenant with respect to the Specific First-Offer Space as described
in this Section.

       

      
        
          	
                  33. 

                	
                  MISCELLANEOUS»

                

        

      

       

      .

       

      (a) Tenant
shall faithfully observe and comply with the Rules and Regulations, a copy of
which is attached hereto and marked Exhibit B, and
all reasonable and non-discriminatory modifications thereof and additions
thereto from time to time put into effect by Landlord and delivered in writing
to Tenant, provided such modifications do not increase the monetary obligations
of Tenant under this Lease or otherwise materially increase the obligations or
diminish the rights of Tenant under this Lease.  Landlord shall not be
responsible or liable to Tenant for the acts or conduct of any other tenant or
occupant of the Project, or for the violation or non-performance by any other
tenant or occupant of the Project of any of said Rules and Regulations, but
Landlord shall use commercially reasonable efforts to non-discriminatorily
enforce the Rules and Regulations.  In the event of any conflict
between any Rule or Regulation and the other provisions of this Lease, the other
provisions of this Lease shall prevail.

       

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

       

      (b) This
Lease shall be governed by, and construed in accordance with, the laws of the
State of California.

       

      (c) Except as
otherwise provided in this Lease, all of the covenants, conditions and
provisions of this Lease shall be binding upon and shall inure to the benefit of
the parties hereto and their respective heirs, personal representatives,
successors and assigns.

       

      (d) Tenant
shall have no right to terminate this Lease, nor shall Tenant be relieved of any
obligations hereunder, except as expressly set forth in this Lease. The
voluntary or other surrender of this Lease by Tenant, or a mutual cancellation
thereof or any other termination of this Lease, shall not work a merger, and
shall, at the option of Landlord, operate as an assignment to it of any or all
subleases or subtenancies.  Upon the expiration or sooner termination
of this Lease, Tenant shall peaceably surrender the Premises and all alterations
and additions thereto, in the same condition as initially improved with the
Tenant Improvements, excepting permitted Alterations which Tenant is not
required to remove pursuant to Section 10(b) above,
reasonable wear and tear, casualty damage governed by Section 18 and damage
which Landlord is obligated to repair pursuant to this Lease, subject to
compliance with the provisions of Section 10(c)
and any other applicable provisions of this Lease.  Tenant agrees that
the delivery of keys to any employee of Landlord or to Landlord's agent or any
employee thereof shall not be sufficient to constitute a termination of this
Lease or a surrender of the Premises.

       

      (e) In the
event either party shall institute any action or proceeding against the other
party relating to this Lease, the unsuccessful party in such action or
proceeding shall reimburse the successful party for its disbursements incurred
in connection therewith and for its reasonable attorneys' fees and
costs.  In addition to the foregoing award of attorneys' fees and
costs to the successful party, the successful party in any lawsuit on this Lease
shall be entitled to its attorneys' fees and costs incurred in any post-judgment
proceedings to collect or enforce the judgment.  This provision is
separate and several and shall survive the merger of this Lease into any
judgment on this Lease.

       

      (f) The
waiver by either party of any breach of any term, covenant or condition herein
contained shall not be deemed to be a waiver of any subsequent breach of the
same or any term, covenant or condition herein contained, nor shall any custom
or practice which may become established between the parties in the
administration of the terms hereof be deemed a waiver of or in any way affect
the right of either party to insist upon the performance by the other party in
strict accordance with the terms of this Lease.  The subsequent
acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of
any preceding breach by Tenant of any term, covenant or condition of this Lease,
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 a lesser sum
than that owed and due pursuant to this Lease shall be deemed to be other than
on account of the earliest installment of such Rent or other amount due, nor
shall any endorsement or statement on any check or any letter accompanying any
check be deemed an accord and satisfaction, and Landlord may accept such check
or payment without prejudice to Landlord's right to recover the balance of such
installment or other amount or pursue any other remedy provided in this
Lease.

       

      (g) Neither
party shall have any liability whatsoever to the other on account of the
inability or delay of such party to fulfill any of its obligations under this
Lease (other than obligations with respect to the payment of rent or any other
monetary amounts owing under this Lease) by reason of any of the following
(collectively, any "Force Majeure
Event"):  fire, earthquake, explosion, flood, the elements,
acts of God or the public enemy, strike, other labor trouble, interference of
governmental authorities or agents, or shortages of fuel, supplies or labor
resulting therefrom or any other cause beyond the reasonable control of the
party obligated for such performance.  If this Lease specifies a time
period for performance of an obligation by either party (other than payment of
rent or any other monetary amounts owing by either party under this Lease), that
time period shall be extended by the period of any delay in such party's
performance caused by any of the events described above.  In addition,
except as specifically set forth in Section 14(d) above,
Landlord shall have no liability whatsoever to Tenant on account of any
failure or defect in the supply, quantity or character of electricity or water
furnished to the Premises or the Project, by reason of any requirement, act or
omission of the public utility or others furnishing the Project with electricity
or water, or for any other reason beyond Landlord's reasonable control, provided
that Landlord shall use reasonable efforts to fulfill its obligations or remedy
such failure or defect as soon as reasonably possible.

       

      (h) The words
"Landlord" and
"Tenant" as
used herein shall include the plural as well as the singular.  Words
used in any gender include other genders and the neutral.  The
paragraph headings of this Lease are not a part of this Lease and shall have no
effect upon the construction or interpretation of any part hereof.

       

      (i) Submission
of this instrument for examination or signature by Tenant does not constitute a
reservation of or option for lease, and it is not effective as a lease or
otherwise until execution by and delivery to both Landlord and
Tenant.

       

      (j) Time is
of the essence with respect to the performance of every provision of this Lease
in which time of performance is a factor.  For purposes of this Lease,
a "business
day" shall mean any day other than a Saturday, Sunday or a
Holiday.

       

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

       

      (k) Tenant
acknowledges that the content of this Lease and any related documents are
confidential information.  Tenant shall keep, and Tenant shall cause
Tenant's Broker to keep, such confidential information strictly confidential and
neither Tenant nor Tenant's Broker shall disclose such confidential information
to any person or entity other than Tenant's financial, legal, and space planning
consultants.  Tenant agrees that Landlord may issue one or more press
releases or other public announcements respecting the execution of this Lease,
which may include, without limitation, identification of Tenant and/or the
principals of Tenant.

       

      (l) If any
term or provision of this Lease, or the application thereof to any persons or
circumstances, shall to any extent be invalid or unenforceable, the remainder of
this Lease, or the application of such provisions to persons or circumstances
other than those as to which it is invalid or unenforceable, shall not be
affected thereby, and each provision of this Lease shall be valid and shall be
enforceable to the extent permitted by law.

       

      (m) Neither
Tenant nor Landlord shall record this Lease or a short form memorandum
hereof.

       

      (n) In
consideration of the benefits accruing hereunder, and notwithstanding anything
contained in this Lease to the contrary, Tenant and all successors and assigns
covenant and agree that, in the event of any actual or alleged failure, breach
or default hereunder by Landlord or in the event of any other action against
Landlord with respect to this Lease, their sole and exclusive remedy shall be
against Landlord's interest in the Project.  Tenant and all such
successors and assigns agree that the obligations of Landlord under this Lease
do not constitute personal obligations of the individual partners, whether
general or limited, members, directors, officers or shareholders of Landlord,
and Tenant shall not seek recourse against the individual partners, members,
directors, officers or shareholders of Landlord or any of their personal assets
for satisfaction of any liability with respect to this
Lease.  Notwithstanding any contrary provision contained in this
Lease, neither Landlord, any of the individual partners, members, directors,
officers or shareholders of Landlord or any of their respective employees,
agents or contractors shall be liable under any circumstances for any indirect
or consequential damages or any injury or damage to, or interference with,
Tenant's business, including but not limited to, loss of profits, loss of rents
or other revenues, loss of business opportunity, loss of goodwill or loss of
use, in each case, however occurring.

       

      (o) If in
connection with obtaining financing for the Project any lender shall request
modifications of this Lease as a condition to Landlord obtaining such financing,
Tenant will not unreasonably withhold, delay or defer its consent thereto,
provided that such modifications do not increase the financial obligations of
Tenant hereunder or materially and adversely affect the leasehold interest
hereby created or Tenant's rights hereunder.

       

      (p) Whenever
the consent or approval of the Landlord or Tenant is required under this Lease,
such consent or approval shall not be unreasonably withheld, conditioned or
delayed, unless a different standard for the granting or withholding of such
approval of consent is specifically set forth in this Lease.

       

      (q) At any
time during the Term, Tenant shall upon ten (10) days prior written notice from
Landlord, provide Landlord with a current financial statement and financial
statements of the two (2) years prior to the current financial statement
year.  Such statements shall be prepared in accordance with generally
accepted accounting principles and, if such is the normal practice of Tenant,
shall be audited by an independent certified public
accountant.  Notwithstanding anything to the contrary contained
herein, if Tenant is a publicly traded corporation making annual 10-K filings
with the Securities and Exchange Commission, Tenant may satisfy the requirements
of this subsection with respect to delivery of financial information by delivery
of Tenant’s most recent annual report filed with the Securities and Exchange
Commission. Unless required by a Lienholder, Tenant shall not be subject to the
requirements of this Section more than one (1) time during any twelve (12) month
period.

       

      (r) Landlord
and Tenant each hereby represent and warrant that such party is duly qualified
to do business in California and that the individuals executing this Lease on
such party's behalf is/are duly authorized to execute and deliver this Lease on
such party's behalf.

       

      (S) EACH
PARTY HERETO (WHICH INCLUDES ANY ASSIGNEE, SUCCESSOR, HEIR OR PERSONAL
REPRESENTATIVE OF A PARTY) SHALL NOT SEEK A JURY TRIAL, HEREBY WAIVES TRIAL BY
JURY, AND HEREBY FURTHER WAIVES ANY OBJECTION TO VENUE IN THE COUNTY IN WHICH
THE BUILDING IS LOCATED, AND AGREES AND CONSENTS TO VENUE AND PERSONAL
JURISDICTION OF THE COURTS OF THE COUNTY AND STATE IN WHICH THE BUILDING IS
LOCATED, IN ANY ACTION OR PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO
AGAINST THE OTHER 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 STATUTE, EMERGENCY OR OTHERWISE, WHETHER ANY
OF THE FOREGOING IS BASED ON THIS LEASE OR ON TORT LAW.  IN THE EVENT
LANDLORD COMMENCES ANY SUMMARY PROCEEDINGS OR ACTION FOR NONPAYMENT OF MONTHLY
BASE RENT OR ADDITIONAL RENT, TENANT SHALL NOT INTERPOSE ANY COUNTERCLAIM OF ANY
NATURE OR DESCRIPTION (UNLESS SUCH COUNTERCLAIM SHALL BE MANDATORY) IN ANY SUCH
PROCEEDING OR ACTION, BUT SHALL BE RELEGATED TO AN INDEPENDENT ACTION AT
LAW.  EACH PARTY REPRESENTS THAT IT HAS HAD THE OPPORTUNITY TO CONSULT
WITH LEGAL COUNSEL CONCERNING THE EFFECT OF THIS SUBSECTION.  THE
PROVISIONS OF THIS SUBSECTION SHALL SURVIVE THE EXPIRATION OF THE TERM OR
EARLIER TERMINATION OF THIS LEASE.

       

      (t) Any
dispute between Landlord and Tenant pursuant to this Lease (other than
Landlord's exercise of unlawful detainer remedies) shall, at the option of
either party, be heard by a reference pursuant to the provisions of California
Code of Civil Procedure Section 638 et seq., for a
determination to be made which shall be binding upon the parties as if tried
before a court or jury.  The parties agree specifically as to the
following: (i) within five (5) business days after service of a demand by a
party hereto, the parties shall agree upon a single referee who shall then try
all issues, whether of fact or law, and then report a finding or judgment
thereon, provided that if the parties are unable to agree upon a referee either
party may seek to have one appointed, pursuant to California Code of Civil
Procedure Section 640, by the presiding judge of the Los Angeles County Superior
Court; (ii) the compensation of the referee shall be such charge as is
customarily charged by the referee for like services, and the cost of such
proceedings shall initially be borne equally by the parties; provided, however,
the prevailing party in such proceedings shall be entitled, in addition to all
other costs, to recover its contribution for the cost of the reference as an
item of damages and/or recoverable costs; (iii) if a reporter is requested by
either party, then a reporter shall be present at all proceedings, and the fees
of such reporter shall be borne by the party requesting such reporter and such
fees shall be an item of recoverable costs, provided that only a party shall be
authorized to request a reporter; (iv) the referee shall apply all California
Rules of Procedure and Evidence and shall apply the substantive law of
California in deciding the issues to be heard, and notice of any motions before
the referee shall be given, and all matters shall be set at the convenience of
the referee; (v) the referee's decision under California Code of Civil Procedure
Section 644, shall stand as the judgment of the court, subject to appellate
review as provided by the laws of the State of California; (vi) the parties
agree that they shall in good faith endeavor to cause any such dispute to be
decided within four (4) months; and the date of hearing for any proceeding shall
be determined by agreement of the parties and the referee, or if the parties
cannot agree, then by the referee; and (vii) the referee shall have the power to
award damages and all other relief.

       

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

       

      (u) Tenant
may install, maintain, replace, remove or use any communications or computer
wires and cables (collectively, the “Lines”) at the
Project in or serving the Premises, provided that (i) Tenant shall obtain
Landlord's prior written consent, use an experienced and qualified contractor
approved in writing by Landlord, and comply with all of the other provisions of
this Lease respecting the use of the Premises and the making of Alterations,
(ii) an acceptable number of spare Lines and space for additional Lines shall be
maintained for existing and future occupants of the Project, as determined in
Landlord's reasonable opinion, (iii) the Lines therefor (including riser cables)
shall be appropriately insulated to prevent excessive electromagnetic fields or
radiation, and shall be surrounded by a protective conduit reasonably acceptable
to Landlord, (iv) any new or existing Lines servicing the Premises shall comply
with all applicable governmental laws and regulations, (v) as a condition to
permitting the installation of new Lines, Landlord may require that Tenant
remove existing Lines located in or serving the Premises and repair any damage
in connection with such removal, and (vi) Tenant shall pay all costs in
connection therewith.  Landlord reserves the right to require that
Tenant remove any Lines located in or serving the Premises which are installed
in violation of these provisions, or which are at any time in violation of any
Laws or represent a dangerous or potentially dangerous
condition.  Landlord further reserves the right to require that Tenant
remove any and all Lines located in or serving the Premises upon the expiration
of the Lease Term or upon any earlier termination of this Lease.

       

      (v) Omitted.

       

      (w) If a
Guarantor is referenced in Section 1(n) above,
it shall be a condition precedent to the effectiveness of this Lease that such
Guarantor execute and deliver to Landlord a guaranty of lease in the form
attached hereto as Exhibit D and
incorporated herein by this reference, guarantying the full and faithful
performance of all obligations of Tenant under this Lease.

       

      (x) This
Lease may be executed in any number of counterparts, each of which shall be
deemed to be an original, but any number of which, taken together, shall
constitute one and the same instrument.

       

      
        
           

        

        
          24

          
            

          

        

        
           

        

      

       

      (y) This
Lease contains all of the agreements of the parties hereto with respect to any
matter covered or mentioned in this Lease, and no prior agreement or
understanding pertaining to any such matter shall be effective for any
purpose.  No provisions of this Lease may be amended or added to
except by an agreement in writing signed by the parties hereto or their
respective successors-in-interest.

       

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

       

      LANDLORD:

      

      THE
TERRACES,

      a
California limited partnership

      

      By:          M.
DAVID PAUL & ASSOCIATES,

      a
California limited partnership,

      its
general partner

      

      

      By:______________________________

         M.
David Paul, General Partner

      

      

      TENANT:

      

      TIX
CORPORATION,

      a
Delaware corporation

      

      

      By:____________________________

      

      Print
Name:____________________

      

      Its:___________________________

      

      

      By:____________________________

      

      Print
Name:____________________

      

      Its:___________________________

       

      
        
           

        

        
          25

          
            

          

        

        
           

        

      

       

      

      

      

       

      EXHIBIT
A

       

      FLOOR
PLAN SHOWING OUTLINE OF PREMISES

       

      And

       

      CONSTRUCTION
PLAN

       

      

       

      

       

      

       

      
        
           

        

        
          EXHIBIT A
- PAGE 1

          
            

          

        

        
           

        

         

      

      EXHIBIT
B

       

      RULES
AND REGULATIONS

       

      1.           Except
as may be specifically provided in the Lease to which these Rules and
Regulations are attached, no sign, placard, picture, advertisement, name or
notice shall be installed or displayed on any part of the outside or inside of
the Building or Project (except within the Premises) without the prior written
consent of Landlord.  Tenant shall not place anything against or near
exterior windows or doors which may appear unsightly from outside the Premises
or which are visible from the exterior of the Premises (other than approved
window coverings).  Landlord shall have the right to remove, at
Tenant's expense and without notice, any sign installed or displayed in
violation of this rule.

       

      2.           Tenant
shall not obstruct any sidewalks, halls, passages, exits, entrances, elevators,
escalators or stairways of the Project.  The halls, passages, exits,
entrances, elevators, escalators and stairways are not open to the general
public, but are open, subject to reasonable regulations, to Tenant's business
invitees.  Landlord shall in all cases retain the right to control and
prevent access thereto of all persons whose presence in the judgment of Landlord
would be prejudicial to the safety and interest of the Project and its
tenants.  Neither Tenant nor any employee or invitee of Tenant shall
go upon the roof of the Project.

       

      3.           Tenant
shall cooperate with Landlord in maintaining the Premises.  All
cleaning and janitorial services for the Project and the Premises shall be
provided exclusively through Landlord.

       

      4.           At
Landlord's request, as a part of the Tenant Improvements, Tenant shall install
new locks in, and re-key, the Premises, and in such event, Tenant shall deliver
a copy of a key to all such locks to Landlord upon installation
thereof.  In addition, upon the termination of its tenancy, Tenant
shall deliver to Landlord the keys to all doors and locks in the
Premises.

       

      5.           All
contractors and technicians rendering any service to Tenant shall be referred to
Landlord for approval (which approval shall not be unreasonably withheld,
conditioned or delayed) and supervision prior to performing any such
service.  This applies to all work performed in the Building,
including but not limited to, installation of telephone and telegraph equipment
and electrical devices and installations affecting floors, walls, woodwork,
windows, ceilings and any other physical portion of the
Building.  None of Tenant's contractors or subcontractors shall be
entitled to (1) display identification or other signage at the Project, (2) use
service elevators at the Project, or (3) park anywhere except in such spaces
within the Project parking facility as designated by Landlord.

       

      6.           No
deliveries shall be made which materially interfere with the operation of the
Project.  No outside food vendors shall be permitted within the
Project except for making of specific deliveries of previously ordered items to
the Premises or the premises of another tenant.

       

      7.           Landlord
shall have the right to prescribe the weight,  size and position of
all equipment, materials, furniture or other property brought into the
Building.  Heavy objects shall, if considered necessary by Landlord,
stand on such platforms as determined by Landlord to be necessary to properly
distribute the weight, which platforms shall be provided at Tenant's
expense.  The persons employed to move such equipment in or out of the
Building must be acceptable to Landlord.  Landlord will not be
responsible for loss of, or damage to, any such equipment or other property from
any cause, and all damage done to the Building by maintaining or moving such
equipment or other property shall be repaired at the expense of
Tenant.

       

      8.           Tenant
shall not use or keep in the Premises any kerosene, gasoline or inflammable or
combustible fluid or material other than those limited quantities necessary for
the operation or maintenance of office equipment.  Tenant shall not
use or permit to be used in the Premises any foul or noxious gas or substance,
or permit or allow the Premises to be occupied or used in a manner offensive or
objectionable to Landlord or other occupants of the Building by reason of noise,
odors or vibrations, nor shall Tenant bring into or keep in or about the
Premises any birds or animals.

       

      9.           Tenant
shall not use any method of heating or air conditioning other than that supplied
by Landlord, except for supplemental air conditioning systems installed in
accordance with the provisions of the Lease.

       

      10.           Tenant
shall not waste electricity, water or air conditioning and agrees to cooperate
fully with Landlord to assure the most effective operation of the Building's
heating and air conditioning and to comply with any governmental energy-saving
rules, laws or regulations.  Tenant shall not tamper with or attempt
to adjust temperature control thermostats in the Premises.  Tenant
shall keep corridor doors closed.  Tenant shall not attempt to open
windows within the Premises.

       

      11.           Landlord
reserves the right, exercisable upon thirty (30) days prior written notice to
Tenant, to change the name and/or street address of the Building.

       

      12.           Landlord
reserves the right to exclude from the Building during hours other than Building
hours of operation, any person unless that person is known to the person or
employee in charge of the Building or has a pass or is properly
identified.  Tenant shall be responsible for all persons for whom it
requests passes and shall be liable to Landlord for all acts of such
persons.  Landlord shall not be liable for damages for any error with
regard to the admission to or exclusion from the Building of any
person.  Landlord reserves the right to prevent access to the Building
in case of invasion, mob, riot, public excitement or other commotion by closing
the doors or by other appropriate action.

       

      
        
           

        

        
          EXHIBIT B
- PAGE 1

          
            

          

        

        
           

        

      

       

      13.           Tenant
shall close and lock the doors of its Premises and entirely shut off all water
faucets or other water apparatus, and electricity, gas or air outlets before
Tenant and its employees leave the Premises.  Tenant shall be
responsible for any damage or injuries sustained by other tenants or occupants
of the Building or by Landlord for noncompliance with this rule.

       

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

       

      15.           Tenant
shall not use the Premises for any business or activity other than that
specifically provided for in this Lease.

       

      16.           Tenant
shall not install any radio or television antenna, loudspeaker or other devices
on the roof(s) or exterior walls of the Building or Project.  Tenant
shall not interfere with radio or television broadcasting or reception from or
in the Project or elsewhere.

       

      17.           Tenant
shall not mark, drive nails, screw or drill into the partitions, woodwork or
plaster or in any way deface the Premises or any part thereof, except in
accordance with the provisions of the Lease pertaining to
Alterations.  Landlord reserves the right to direct electricians as to
where and how telephone and telegraph wires are to be introduced to the
Premises.  Tenant shall not cut or bore holes for wires, except in
accordance with the provisions of the Lease pertaining to
Alterations.  Tenant shall not affix any floor covering to the floor
of the Premises in any manner except as approved by Landlord to the extent
required by the provisions of the Lease pertaining to
Alterations.  Tenant shall repair any damage resulting from
noncompliance with this rule.

       

      18.           Canvassing,
soliciting and distribution of handbills or any other written material, and
peddling in the Project are prohibited, and Tenant shall cooperate to prevent
such activities.

       

      19.           Landlord
reserves the right to exclude or expel from the Project any person who, in
Landlord's judgment, is intoxicated or under the influence of liquor or drugs or
who is in violation of any of the Rules and Regulations of the
Project.

       

      20.           Tenant
shall store all its trash and garbage within its Premises or in other facilities
provided by Landlord.  Tenant shall not place in any trash box or
receptacle any material which cannot be disposed of in the ordinary and
customary manner of trash and garbage disposal.  All garbage and
refuse disposal shall be made in accordance with reasonable directions issued
from time to time by Landlord.

       

      21.           No
cooking shall be done or permitted on the Premises except the use by Tenant of
Underwriters' Laboratory approved equipment for brewing coffee, tea, and other
similar hot beverages shall be permitted, and the use of an Underwriter's
Laboratory approved microwave oven for employee use shall be permitted, provided
that such equipment and use is in accordance with all applicable
Laws.  Tenant may install soft drink vending machines for use by
Tenant's employees and invitees.

       

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

       

      23.           Tenant's
requirements will be attended to only upon appropriate application to the
Project management office by an authorized individual.  Employees of
Landlord shall not perform any work or do anything outside of their regular
duties unless under special instructions from Landlord, and no employee of
Landlord will admit any person (Tenant or otherwise) to any office without
specific instructions from Landlord.

       

      24.           There
shall be no smoking within the Building or immediately adjacent to Building
entrances (except in areas, if any, designated therefor by
Landlord).

       

      25.           Landlord
may waive any one or more of these Rules and Regulations for the benefit of
Tenant or any other tenant, but no such waiver by Landlord shall be construed as
a waiver of such Rules and Regulations in favor of any other
tenant.

       

      26.           These
Rules and Regulations are in addition to, and  shall not be construed
to in any way modify or amend, in whole or in part, the terms, covenants,
agreements and conditions of the Lease.

       

      27.           Upon
written notice to Tenant, Landlord reserves the right to rescind any of these
Rules and Regulations and to make future Rules and Regulations as, in its
judgment, may from time to time be needed for safety, comfort and security, for
care and cleanliness of the Project and for the preservation of good order
therein.  Tenant agrees to abide by all such Rules and Regulations
herein above stated and any additional rules and regulations which are adopted
and of which Tenant has received written notice.

       

      28.           Tenant
shall be responsible for the observance of all of the foregoing rules by
Tenant's employees, agents, customers, invitees and guests.

       

      
        
           

        

        
          EXHIBIT B
- PAGE 2

          
            

          

        

        
           

        

      

       

      29.           Landlord
reserves the right to charge as Additional Rent to Tenant, any extra costs
incurred by Landlord as a result of Tenant's violation of these Rules and
Regulations.

       

      
        
           

        

        
          EXHIBIT B
- PAGE 3

          
            

          

        

        
           

        

      

       

      EXHIBIT
C

       

      IMPROVEMENT
OF THE PREMISES

       

      

       

      1.             AS-IS LEASE.  Except as
otherwise specifically provided in the Lease of which this Exhibit C is a part,
the lease of the Premises (including, without limitation, HVAC, fire/life safety
and other utility and mechanical systems within the Premises) by Tenant pursuant
hereto shall be on an entirely "as is" basis.  Tenant hereby
acknowledges (a) that it has been advised to satisfy itself with respect to the
condition of the Premises (including but not limited to the electrical systems,
environmental aspects, seismic and earthquake requirements, and compliance with
the Americans with Disabilities Act and applicable zoning, municipal, county,
state and federal laws, ordinances and regulations and any covenants or
restrictions of record (collectively, “Applicable Laws”) and
the present and future suitability of the Premises for Tenant’s intended use;
(b) that Tenant has made such investigation as it deems necessary with reference
to such matters, is satisfied with reference thereto, and assumes all
responsibility there­fore as the same relate to Tenant's occupancy of the
Premises and/or the terms of this Lease; and (c) that neither Landlord, nor any
of Landlord's agents, has made any oral or written representations or warranties
with respect to said matters other than as set forth in this Lease.
Notwithstanding the foregoing, .  Landlord warrants and represents
that, as of the Commencement Date, the Premises (including but not limited to
the electrical and HVAC systems) will comply with all Laws and shall systems be
in proper working order.

      

       

      2.             LANDLORD’S
WORK.  Notwithstanding the foregoing provisions, Landlord
shall, at Landlord’s sole cost and expense, perform the work to the Premises set
forth on Exhibit “C-1” (“Landlord’s Work”),
using Building standard finishes.  Tenant shall be permitted to select
the color of said finished from among those used by
Landlord.  Landlord warrants and represents that, as of the
Commencement Date, the Premises (including but not limited to the electrical and
HVAC systems) will comply with all Laws and shall systems be in proper working
order.

       

      3.           TENANT’S EARLY
POSSESSION.  Landlord shall use commercially reasonable efforts
to permit Tenant occupancy during a twenty-one (21) day period prior to the
substantial completion of Landlord’s Work for the purposes of permitting Tenant
to install its wiring, cabling, furniture, fixtures and equipment. If Tenant
totally or partially occupies the Premises prior to the substantial completion
of Landlord’s Work, Tenant shall use its best efforts to avoid interfering with
the Landlord’s Work. Tenant hereby waives any claim for damages for any injury
to person or property, or inconvenience to or interference with Tenant's
business, any loss of occupancy or quiet enjoyment of the Premises, and any
other loss in, upon and about the Premises or the Project arising out of
Landlord’s Work.  The performance of the Landlord’s Work shall not be
construed or deemed to be a forcible or unlawful entry into the Premises, or an
eviction of Tenant from the Premises or any portion thereof.

       

      4.           BENEFICIAL
OCCUPANCY.  Landlord anticipates that it will be able to
substantially complete Landlord’s Work by April 15, 2010.  Subject to
the provisions of this Section, Tenant shall be entitled to occupy the Premises
from the date of substantial completion of Landlord’s Work to the Commencement
Date (“Beneficial
Occupancy Period”) and shall have no obligation to pay Monthly Base Rent
or Parking charges during the Beneficial Occupancy Period.  However,
Tenant shall be obligated to pay Landlord, as additional Rent,  the
monthly amount of $0.36 per Rental Square Feet of space occupied during the
Beneficial Occupancy Period for Tenant’s direct share of cleaning expenses and
utilities.

       

      Notwithstanding
the foregoing, Landlord and Tenant acknowledge that Suite 345 is presently
occupied by a tenant upon a lease which will expire February 28,
2010.  Landlord shall use commercially reasonable efforts to obtain
possession of Suite 345 prior to February 28, 2010.  In the event that
Landlord is able to obtain possession of Suite 345 prior to February 28, 2010,
and is therefore able to substantially complete Landlord’s Work prior to April
15, 2010, Tenant shall pay Landlord the Rent due under the existing tenant’s
lease for the period of time from the date Landlord obtains possession of Suite
345 through February 28, 2010.

       

      
        
           

        

        
          EXHIBIT B
- PAGE 4

          
            

          

        

        
           

        

      

       

      EXHIBIT
C-1

       

      SCOPE
OF WORK

       

      

      DEMOLITION

      
        	
                ·  

              	
                Demolish
      approximately115 LF of wall, per
plan.

              

      

      
        	
                ·  

              	
                Demolish
      cabinets at existing kitchen.

              

      

      
        	
                ·  

              	
                Remove
      all existing carpet & base from
suite.

              

      

      

      MILLWORK

      
        	
                ·  

              	
                Fabricate/install
      4’ long counter extension at
Kitchen.

              

      

      
        	
                ·  

              	
                Fabricate/install
      wood transaction top at new pass-thru
window.

              

      

      
        	
                ·  

              	
                Provide
      “sink cabinet” with counter at
bathroom.

              

      

      

      DOORS/FRAMES/HARDWARE

      
        	
                ·  

              	
                Demo
      eight (8) door assemblies during Demo
phase.

              

      

      
        	
                ·  

              	
                Reinstall
      five (5) door assemblies per new office
layout.

              

      

      
        	
                ·  

              	
                Provide/install
      sidelite frame (matching door frames) @ Conference
  Room.

              

      

      
        	
                ·  

              	
                Provide/install
      “restroom equipment” at Private Restroom (soap dispenser, toilet paper
      holder, and towel bar).  TP holder / towel bar assumed to be
      standard polished chrome finish.

              

      

      

      GLASS
& GLAZING

      
        	
                ·  

              	
                Fabricate/install
      two (2) new “storefront” type doors to
Patio.

              

      

      
        	
                ·  

              	
                Provide/install
      glass (1/8” thick) @ Conference Room
sidelite.

              

      

      
        	
                ·  

              	
                Provide/install
      sliding glass panels at new pass-thru
window.

              

      

      
        	
                ·  

              	
                Provide/install
      frameless, 24” X 36” mirror at Private
Restroom.

              

      

      

      DRYWALL

      
        	
                ·  

              	
                Construct
      approximately 120 LF of new under-grid wall, per
  plan.

              

      

      
        	
                ·  

              	
                Cut
      / frame opening for new pass-thru
window.

              

      

      
        	
                ·  

              	
                Construct
      hard lid ceiling at new Private
Restroom.

              

      

      

      ACOUSTIC
CEILINGS

      
        	
                ·  

              	
                Repair
      ceiling grid as needed where wall are
  demolished.

              

      

      
        	
                ·  

              	
                Replace
      any damaged/dirty ceiling tiles.

              

      

      

      CARPET/BASE/VCT

      
        	
                ·  

              	
                Install
      building standard carpet & base at all areas excepting Kitchen, Phone
      Room, Storage & Restroom.

              

      

      
        	
                ·  

              	
                Install
      building standard VCT & base at Kitchen, Phone Room & Storage
      Room.

              

      

      
        	
                ·  

              	
                Install
      ceramic tile ($14.00/SF allowance for material + labor) with matching base
      at Private Restroom.  NOTE:  Floor tile
      only – no ceramic on walls.

              

      

      

      PAINT

      
        	
                ·  

              	
                Paint
      all walls throughout the suite, using one (1) building standard color, two
      coats, flat finish.

              

      

      
        	
                ·  

              	
                Paint
      hard lid ceiling @ Private
Restroom.

              

      

      

      APPLIANCES

      
        	
                ·  

              	
                Provide
      one (1) dishwasher, color to be black, white or bisque ($ 500.00
      allowance).

              

      

      

      WINDOW
TREATMENTS

      
        	
                ·  

              	
                Add
      / replace blinds as needed per new wall layouts, replace any missing /
      damaged wands, valences, etc.

              

      

      

      PLUMBING

      
        	
                ·  

              	
                Demo
      plumbing at existing Kitchen.

              

      

      
        	
                ·  

              	
                Provide
      rough & finish plumbing at new Private Restroom (including
      a

              

      

      $ 600.00
allowance for purchase of sink / toilet).

      

      HVAC

      
        	
                ·  

              	
                Relocate
      diffusers, thermostats as needed to accommodate new wall
      layout.

              

      

      
        	
                ·  

              	
                Install
      new ductwork, supply diffuser for Private
  Restroom.

              

      

      
        	
                ·  

              	
                At
      Private Restroom, install exhaust air grille and associated ductwork to
      exhaust shaft.

              

      

      
        	
                ·  

              	
                Perform
      air balance of entire suite.

              

      

      

      ELECTRICAL
/ LIGHT FIXTURES

      
        	
                ·  

              	
                Perform
      electrical “safe off” at all walls to be
  demolished.

              

      

      
        	
                ·  

              	
                Install
      new electrical outlets per plan, including one (1) separate circuit outlet
      for a copier and a “GFI” outlet in the
Restroom.

              

      

      
        	
                ·  

              	
                Modify
      existing electrical “chase” at curtain wall to accommodate new
      walls.

              

      

       

      
        
           

        

        
          EXHIBIT B
- PAGE 5

          
            

          

        

        
           

        

      

       

      
        	
                ·  

              	
                Provide
      two (2) new floor outlets (Conference Room + Corner
    Office).

              

      

      
        	
                ·  

              	
                Relocate
      existing 2X4s as needed to accommodate new wall
  layout.

              

      

      
        	
                ·  

              	
                Purchase/install
      four (4) new 2X4s at Area 345 (Open
Area).

              

      

      
        	
                ·  

              	
                Relocate
      existing downlights in Suite 345 space to Conference Room & Corner
      Office (338).

              

      

      
        	
                ·  

              	
                Provide
      power to new dishwasher, exhaust fan in
  Restroom.

              

      

       

      
        
           

        

        
          EXHIBIT B
- PAGE 6

          
            

          

        

        
           

        

      

      
 

      

      

       

      OFFICE
LEASE

       

      by and
between

       

      

       

      THE
TERRACES,

       

      a
California limited partnership,

       

      Landlord

       

      and

       

      TIX
CORPORATION,

       

      a
Delaware corporation

       

      Tenant

       

      

       

      

      12711
Ventura Boulevard, Suite 340

      Studio
City, California

       

      

       

      

       

      

       

      

       

      

       

      DATE:  March
3, 2010

       

      

       

      

      
        
           

        

        
          EXHIBIT B
- PAGE 7

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                TABLE
      OF CONTENTS

              

      

       

      
        
          	
                  1.

                	
                  TERMS
      AND DEFINITIONS.

                	
                  1

                
	 	 	 
	
                  2.

                	
                  PREMISES
      LEASED.

                	
                  2

                
	 	 	 
	
                  3.

                	
                  TERM;
      OPTION TO EXTEND

                	
                  2

                
	 	 	 
	
                  4.

                	
                  DELIVERY
      OF POSSESSION

                	
                  3

                
	 	 	 
	
                  5.

                	
                  RENT;
      SECURITY DEPOSIT

                	
                  3

                
	 	 	 
	
                  6.

                	
                  OPERATING
      AND TAX EXPENSES

                	
                  4

                
	 	 	 
	
                  7.

                	
                  USE

                	
                  7

                
	 	 	 
	
                  8.

                	
                  TAXES
      ON TENANT'S PROPERTY.

                	
                  8

                
	 	 	 
	
                  9.

                	
                  CONDITION
      OF PREMISES.

                	
                  8

                
	 	 	 
	
                  10.

                	
                  ALTERATIONS

                	
                  8

                
	 	 	 
	
                  11.

                	
                  REPAIRS

                	
                  9

                
	 	 	 
	
                  12.

                	
                  LIENS.

                	
                  10

                
	 	 	 
	
                  13.

                	
                  ENTRY
      BY LANDLORD.

                	
                  10

                
	 	 	 
	
                  14.

                	
                  UTILITIES
      AND SERVICES

                	
                  10

                
	 	 	 
	
                  15.

                	
                  INDEMNIFICATION.

                	
                  11

                
	 	 	 
	
                  16.

                	
                  DAMAGE
      TO TENANT'S PROPERTY AND WAIVER.

                	
                  11

                
	 	 	 
	
                  17.

                	
                  INSURANCE

                	
                  12

                
	 	 	 
	
                  18.

                	
                  DAMAGE
      OR DESTRUCTION

                	
                  13

                
	 	 	 
	
                  19.

                	
                  EMINENT
      DOMAIN

                	
                  14

                
	 	 	 
	
                  20.

                	
                  ASSIGNMENT
      AND SUBLETTING

                	
                  14

                
	 	 	 
	
                  21.

                	
                  DEFAULT
      BY TENANT

                	
                  16

                
	 	 	 
	
                  22.

                	
                  DEFAULT
      BY LANDLORD

                	
                  17

                
	 	 	 
	
                  23.

                	
                  SUBORDINATION.

                	
                  18

                
	 	 	 
	
                  24.

                	
                  ESTOPPEL
      CERTIFICATE

                	
                  18

                
	 	 	 
	
                  25.

                	
                  DEFINITION
      OF LANDLORD.

                	
                  18

                
	 	 	 
	
                  26.

                	
                  PARKING

                	
                  18

                
	 	 	 
	
                  27.

                	
                  SIGNAGE.

                	
                  19

                
	 	 	 
	
                  28.

                	
                  NOTICES.

                	
                  19

                
	 	 	 
	
                  29.

                	
                  HOLDING
      OVER.

                	
                  19

                
	 	 	 
	
                  30.

                	
                  QUIET
      ENJOYMENT.

                	
                  19

                
	 	 	 
	
                  31.

                	
                  BROKERS.

                	
                  20

                
	 	 	 
	
                  32.

                	
                  RIGHT
      OF FIRST OFFER

                	
                  20

                
	 	 	 
	
                  33.

                	
                  MISCELLANEOUS

                	
                  21

                

        

      Exhibits:

      Exhibit A
- Floor Plan Showing Outline of Premises

      Exhibit B
- Rules and Regulations

      Exhibit C
- Improvement of the Premises

      Exhibit
C-1 Scope of Work

       

      
        
           

        

        
          i

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