Document:

WAIVER
      TO THE GUARANTEE AND SECURITY AGREEMENT

     

    This
      WAIVER
      TO THE GUARANTEE AND SECURITY AGREEMENT
      (this
“Waiver”)
      relates to that Guarantee and Security Agreement, dated July 30, 2007 (the
      “Guarantee”)
      by and
      among TWISTBOX ENTERTAINMENT, INC., a Delaware corporation (the “Company”),
      certain subsidiaries of the Company and VALUEACT SMALLCAP MASTER FUND, L.P.
      (the
“Investor”)
      and is
      made and entered into as of February 12, 2008 by and between the Company and
      the
      Investor. Capitalized terms used and not otherwise defined in this Waiver are
      used herein as defined in the Guarantee.

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      the Company and the Investor desire to waive compliance with certain provisions
      of the Guarantee.

     

    WHEREAS,
      Article 8 of the Guarantee provides that the terms thereof may be amended or
      waived only pursuant to a written instrument executed by the Grantors and the
      holders of a majority of the aggregate principal amount of the Senior Secured
      Notes then outstanding.

     

    WHEREAS,
      the Investor owns 100% of the aggregate principal amount of the Senior Secured
      Notes. 

     

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

     

     

    1.  Waiver
      of Section 3.1(b)(i)(C).
      The
      Investor hereby waives compliance with the covenant set forth in Section
      3.1(b)(i)(C) of the Guaranty solely with respect to the transactions
      contemplated by the Agreement and Plan of Merger dated as of December 31, 2007,
      by and among Mandalay Media, Inc., a Delaware corporation (“Parent”),
      Twistbox Acquisition, Inc., a Delaware corporation and a wholly-owned subsidiary
      of Parent, the Company and Adi McAbian and Spark Capital, L.P., as
      representatives of the stockholders of the Company, as the same may be amended
      from time to time (the “Merger
      Agreement”)

     

    2.  Effectiveness
      of this Waiver.
      This
      Waiver shall have no force or effect until immediately prior to the Effective
      Time (as defined in the Merger Agreement). 

     

    3.  Full
      Force and Effect.
      Except
      as modified by this Waiver, all other terms and conditions in the Guarantee
      shall remain in full force and effect.

     

    4.  Effect.
      Unless
      the context otherwise requires, the Guarantee and this Waiver shall be read
      together and shall have effect as if the provisions of the Guarantee and this
      Waiver were contained in one agreement. After the effective date of this Waiver,
      all references in the Guarantee “this Guarantee and Security Agreement,”
“hereto,” “hereof,” “hereunder” or words of like import referring to the
      Guarantee shall mean the Guarantee as modified by this Waiver.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.  Counterparts.
      This
      Waiver may be executed in separate counterparts, all of which taken together
      shall constitute a single instrument.

    

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Waiver effective as
      of
      the day and year first above written.

     

     

    THE
      COMPANY:

     

    
      	 	
              TWISTBOX
                ENTERTAINMENT, INC.

               

               

              By: /s/
                Ian Aaron 

              Name: 
                Ian Aaron

              Title:
                CEO

            

    

     

     

    INVESTOR:

     

    
      	 	
              VALUEACT
                SMALLCAP MASTER FUND, L.P., 

              By
                VA Smallcap Partners, LLC, its General Partner

               

              

              By: /s/
                David Lockwood 

              Name:
                David Lockwood

              Title:
                Managing MemberSTANDARD
      INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE - NET 

    AIR
      COMMERCIAL REAL ESTATE ASSOCIATION

     

    1.
      Basic
      Provisions (“ Basic Provisions”).

     

    1.1
      Parties: This Lease (“Lease”), dated for reference purposes only July 1, 2005,
      is made by and between Berkshire Holdings, LLC (“Lessor”) and Waat Corp., a
      California corporation (“Lessee”), (collectively the “Parties”, or individually
      a “Party”).

     

    1.2
      (a)
      Premises: That certain portion of the Project (as defined below), including
      all
      improvements therein or to be provided by Lessor under the terms of this Lease,
      commonly known by the street address of 14242 Ventura Boulevard, Suite 300
      located in the City of Sherman Oaks, County of Los Angeles, State of California,
      with zip code 91423, as outlined on Exhibit A attached hereto (“Premises”) and
      generally described as (describe briefly the nature of the Premises): Office
      space

     

    In
      addition to Lessee’s rights to use and occupy the Premises as hereinafter
      specified, Lessee shall have non-exclusive rights to the any utility raceways
      of
      the building containing the Premises (“Building”) and to the common Areas (as
      defined in Paragraph 2.7 below), but shall not have any rights to the roof
      or
      exterior walls of the Building or to any other buildings in the Project. The
      Premises, the Building, the Common Areas, the land upon which they are located,
      along with all other buildings and improvements thereon, are herein collectively
      referred to as the “Project.” (See also Paragraph 2)

     

    1.2
      (b)
      Parking: 200 unreserved vehicle parking spaces (“Unreserved Parking Spaces”) and
      30 reserved vehicle parking spaces (“Reserved Parking Spaces”). (See also
      Paragraph 2.6)

     

    1.3
      Term:
      five years and zero months (“Original Term”) commencing July 15, 2005
      (“Commencement Date”) and ending July 15, 2010 (“Expiration Date”). (See also
      Paragraph 3) 

     

    1.4
      Early
      Possession: N/A (“Early Possession Date”).

    (See
      also
      Paragraphs 3.2 and 3.3)

     

    1.5
      Base
      Rent: $21,000.00 per month (“Base Rent”), payable on the first day of each month
      commencing July 15, 2005 (See also Paragraph 4)

     

     ̈
      If this
      box is checked, there are provisions in this Lease for the Base Rent to be
      adjusted.

     

    1.6
      Lessee’s Share of Common Area Operating Expenses: Thirty-two percent (32%)
      (“Lessee’s Share”). Lessee’s Share has been calculated by dividing the
      approximate square footage of the Premises by the approximate square footage
      of
      the Project. In the event that the size of the Premises and/or the Project
      are
      modified during the term of this Lease, Lessor shall recalculate Lessee’s Share
      to reflect such modification.

     

    1.7
      Base
      Rent and Other Monies Paid Upon Execution:

     

    (a) Base
      Rent: $10, 500.00 for the period July 15, 2005 - August 15, 2005

     

    (b) Common
      Area Operating Expenses: $N/A for the period ___________

     

    
      
        (c)
          Security
          Deposit: $21,000.00 (“Security Deposit”). (See also Paragraph 5)

      

    

     

    
      
        (d)
          Other:
          $N/A for_______________________________________

      

    

     

    (e) Total
      Due
      Upon Execution of this Lease: $31,500.00

     

    1.8
      Agreed Use: Office use and no other purpose (See also Paragraph 6)

     

    1.9
      Insuring Party. Lessor is the “Insuring Party”. (See also Paragraph
      8)

     

    1.10
      Real
      Estate Brokers: (See also Paragraph 15) N/A

     

    (a)
      Representation: The following real estate brokers (the “Brokers”) and brokerage
      relationships exist in this transaction 

     

    (check
      applicable boxes):

     

    þ
      N/A
      represents Lessor exclusively (“Lessor’s Broker”);

     

    þ
      N/A
      represents Lessee exclusively (“Lessee’s Broker”); or

     

     ̈
      _________________ represents both Lessor and Lessee (“Dual
      Agency”).

     

    (b)
      Payment to Brokers: Upon execution and delivery of this Lease by both Parties,
      Lessor shall pay to the Brokers the brokerage fee agreed to in a separate
      written agreement (or if there is no such agreement, the sum of N/A or ___
      % of
      the total Base Rent for the brokerage services rendered by the
      Brokers).

     

    1.11
      Guarantor. The obligations of the Lessee under this Lease are to be guaranteed
      by N/A (“Guarantor”). (See also Paragraph 37) 

     

    1.12
      Attachments. Attached hereto are the following, all of which constitute a part
      of this Lease:

     

    þ
      an
      Addendum consisting of Paragraphs 1 through 1;

     

    þ
      a site
      plan depicting the Premises;

     

     ̈
      a site
      plan depicting the Project;

     

     ̈
      a
      current set of the Rules and Regulations for the Project:

     

    
      	
              

            	 	
              
                

              

            
	
              INITIALS

            	 	
              INITIALS

            

    

     

     

    
      
        
        

      

      
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     ̈
      a
      current set of the Rules and Regulations adopted by the owners’
association;

     

     ̈
      a Work
      Letter;

     

     ̈
      other
      (specify)

     

    2.
      Promises.

     

    2.1
      Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor,
      the Premises, for the term, at the rental, and upon all of the terms, covenants
      and conditions set forth in this Lease. Unless otherwise provided herein, any
      statement of size set forth in this Lease, or that may have been used in
      calculating Rent, is an approximation which the Parties agree is reasonable
      and
      any payments based thereon are not subject to revision whether or not the actual
      size is more or less. NOTE: Lessee is advised to verify the actual size prior
      to
      executing this Lease.

     

    2.2
      Condition. Lessor shall deliver that portion of the Premises contained within
      the Building (“Unit”) to Lessee broom clean and free of debris on the
      Commencement Date or the Early Possession Date, whichever first occurs (“Start
      Date”), and, so long as the required service contracts described in Paragraph
      7.1(b) below are obtained by Lessee and in effect within thirty days following
      the Start Date, warrants that the existing electrical, plumbing, fire sprinkler,
      lighting, heating, ventilating and air conditioning systems (“HVAC”), loading
      doors, sump pumps, if any, and all other such elements in the Unit, other than
      those constructed by Lessee, shall be in good operating condition on said date,
      that the structural elements of the roof, bearing walls and foundation of the
      Unit shall be free of material defects, and that the Unit does not contain
      hazardous levels of any mold or fungi defined as toxic under applicable state
      or
      federal law. If a non-compliance with such warranty exists as of the Start
      Date,
      or if one of such systems or elements should malfunction or fail within the
      appropriate warranty period, Lessor shall, as Lessor’s sole obligation with
      respect to such matter, except as otherwise provided in this Lease, promptly
      after receipt of written notice from Lessee setting forth with specificity
      the
      nature and extent of such non-compliance, malfunction or failure, rectify same
      at Lessor’s expense. The warranty periods shall be as follows: (i) 6 months as
      to the HVAC systems, and (ii) 30 days as to the remaining systems and other
      elements of the Unit. If Lessee does not give Lessor the required notice within
      the appropriate warranty period, correction of any such non-compliance,
      malfunction or failure shall be the obligation of Lessee at Lessee’s sole cost
      and expense (except for the repairs to the fire sprinkler systems, roof,
      foundations, and/or bearing walls - see Paragraph 7).

     

    2.3
      Compliance. Lessor warrants that to the best of its knowledge the improvements
      on the Premises and the Common Areas comply with the building codes that were
      in
      effect at the time that each such improvement, or portion thereof, was
      constructed, and also with all applicable laws, covenants or restrictions of
      record, regulations, and ordinances in effect on the Start Date (“Applicable
      Requirements”). Said warranty does not apply to the use to which Lessee will put
      the Premises, modifications which may be required by the Americans with
      Disabilities Act or any similar laws as a result of Lessee’s use (see Paragraph
      49), or to any Alterations or Utility Installations (as defined in Paragraph
      7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for
      determining whether or not the Applicable Requirements and especially the zoning
      are appropriate for Lessee’s intended use, and acknowledges that past uses of
      the Premises may no longer be allowed. If the Premises do not comply with said
      warranty, Lessor shall, except as otherwise provided, promptly after receipt
      of
      written notice from Lessee setting forth with specificity the nature and extent
      of such non-compliance, rectify the same at Lessor’s expense. If Lessee does not
      give Lessor written notice of a non-compliance with this warranty within 6
      months following the Start Date, correction of that non-compliance shall be
      the
      obligation of Lessee at Lessee’s sole cost and expense. If the Applicable
      Requirements are hereafter changed so as to require during the term of this
      Lease the construction of an addition to or an alteration of the Unit, Premises
      and/or Building, the remediation of any Hazardous Substance, or the
      reinforcement or other physical modification of the Unit, Premises and/or
      Building (“Capital Expenditure”), Lessor and Lessee shall allocate the cost of
      such work as follows:

     

    (a)
      Subject to Paragraph 23(c) below, if such Capital Expenditures are required
      as a
      result of the specific and unique use of the Premises by Lessee as compared
      with
      uses by tenants in general, Lessee shall be fully responsible for the cost
      thereof, provided, however that if such Capital Expenditure is required during
      the last 2 years of this Lease and the cost thereof exceeds 6 months’ Base Rent,
      Lessee may instead terminate this Lease unless Lessor notifies Lessee, in
      writing, within 10 days after receipt of Lessee’s termination notice that Lessor
      has elected to pay the difference between the actual cost thereof and the amount
      equal to 6 months’ Base Rent. If Lessee elects termination, Lessee shall
      immediately cease the use of the Premises which requires such Capital
      Expenditure and deliver to Lessor written notice specifying a termination date
      at least 90 days thereafter. Such termination date shall however, in no event
      be
      earlier than the last day that Lessee could legally utilize the Premises without
      commencing such Capital Expenditure.

     

    (b)
      If
      such Capital Expenditure is not the result of the specific and unique use of
      the
      Premises by Lessee (such as, governmentally mandated seismic modifications),
      then Lessor and Lessee shall allocate the obligation to pay for the portion
      of
      such costs reasonably attributable to the Premises pursuant to the formula
      set
      out in Paragraph 7.1(d); provided, however, that if such Capital Expenditure
      is
      required during the last 2 years of this Lease or if Lessor reasonably
      determines that it is not economically feasible to pay its share thereof, Lessor
      shall have the option to terminate this Lease upon 90 days prior written notice
      to Lessee unless Lessee notifies Lessor, in writing, within 10 days after
      receipt of Lessor’s termination notice that Lessee will pay for such Capital
      Expenditure. If Lessor does not elect to terminate, and fails to tender its
      share of any such Capital Expenditure, Lessee may advance such funds and deduct
      same, with Interest, from Rent until Lessor’s share of such costs have been
      fully paid. If Lessee is unable to finance Lessor’s share, or if the balance of
      the Rent due and payable for the remainder of this Lease is not sufficient
      to
      fully reimburse Lessee on an offset basis, Lessee shall have the right to
      terminate this Lease upon 30 days written notice to Lessor.

     

    (c)
      Notwithstanding the above, the provisions concerning Capital Expenditures are
      intended to apply only to non-voluntary, unexpected, and new Applicable
      Requirements. If the Capital Expenditures are instead triggered by Lessee as
      a
      result of an actual or proposed change in use, change in intensity of use,
      or
      modification to the Premises then, and in that event, Lessee shall either:
      (i)
      immediately cease such changed use or intensity of use and/or take such other
      steps as may be necessary to eliminate the requirement for such Capital
      Expenditure, or (ii) complete such Capital Expenditure at its own expense.
      Lessee shall not have any right to terminate this Lease.

     

    2.4
      Acknowledgements. Lessee acknowledges that: (a) it has been advised by Lessor
      and/or Brokers to satisfy itself with respect to the condition of the Premises
      (including but not limited to the electrical, HVAC and fire sprinkler systems,
      security, environmental aspects, and compliance with Applicable Requirements
      and
      the Americans with Disabilities Act), and their suitability for Lessee’s
      intended use, (b) Lessee has made such investigation as it deems necessary
      with
      reference to such matters and assumes all responsibility therefor as the same
      relate to its occupancy of the Premises, and (c) neither Lessor, Lessor’s
      agents, nor Brokers have made any oral or written representations or warranties
      with respect to said matters other than as set forth in this Lease. In addition,
      Lessor acknowledges that: (i) Brokers have made no representations, promises
      or
      warranties concerning Lessee’s ability to honor the Lease or suitability to
      occupy the Premises, and (ii) it is Lessor’s sole responsibility to investigate
      the financial capability and/or suitability of all proposed
      tenants.

     

    2.5
      Lessee as Prior Owner/Occupant. The warranties made by Lessor in Paragraph
      2
      shall be of no force or effect if immediately prior to the Start Date Lessee
      was
      the owner or occupant of the Premises. In such event, Lessee shall be
      responsible for any necessary corrective work.

     

    2.6
      Vehicle Parking. Lessee shall be entitled to use the number of parking spaces
      specified in Paragraph 1.2(b) on those portions of the Common Areas designated
      from time to time by Lessor for parking. Lessee shall not use more parking
      spaces than said number. Said parking spaces shall be used for parking by
      vehicles no larger than full-size passenger automobiles or pick-up trucks,
      herein called “Permitted Size Vehicles.” Lessor may regulate the loading and
      unloading of vehicles by adopting Rules and Regulations as provided in Paragraph
      2.9. No vehicles other than Permitted Size Vehicles may be parked in the Common
      Area without the prior written permission of Lessor. In addition:

     

      	
              

            	 	
              
                

              

            
	
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    (a)
      Lessee shall not permit or allow any vehicles that belong to or are controlled
      by Lessee or Lessee’s employees, suppliers, shippers, customers, contractors or
      invitees to be loaded, unloaded, or parked in areas other than those designated
      by Lessor for such activities.

     

    (b)
      Lessee shall not service or store any vehicles in the Common Areas.

     

    (c)
      If
      Lessee permits or allows any of the prohibited activities described in this
      Paragraph 2.6, then Lessor 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 Lessee, which cost shall be immediately
      payable upon demand by Lessor.

     

    2.7
      Common Areas - Definition. The term “Common Areas” is defined as all areas and
      facilities outside the Premises and within the exterior boundary line of the
      Project and interior utility raceways and installations within the Unit that
      are
      provided and designated by the Lessor from time to time for the general
      non-exclusive use of Lessor, Lessee and other tenants of the Project and their
      respective employees, suppliers, shippers, customers, contractors and invitees,
      including parking areas, loading and unloading areas, trash areas, roadways,
      walkways, driveways and landscaped areas

     

    2.8
      Common Areas - Lessee’s Rights. Lessor grants to Lessee, for the benefit of
      Lessee and its employees, suppliers, shippers, contractors, customers and
      invitees. during the term of this Lease, the non-exclusive right to use, in
      common with others entitled to such use, the Common Areas as they exist from
      time to time, subject to any rights, powers, and privileges reserved by Lessor
      under the terms hereof or under the terms of any rules and regulations or
      restrictions governing the use of the Project. Under no circumstances shall
      the
      right herein granted to use the Common Areas be deemed to include the right
      to
      store any property, temporarily or permanently, in the Common Areas. Any such
      storage shall be permitted only by the prior written consent of Lessor or
      Lessor’s designated agent, which consent may be revoked at any time. In the
      event that any unauthorized storage shall occur then Lessor shall have the
      right, without notice, in addition to such other rights and remedies that it
      may
      have, to remove the property and charge the cost to Lessee, which cost shall
      be
      immediately payable upon demand by Lessor.

     

    2.9
      Common Areas - Rules and Regulations. Lessor or such other person(s) as Lessor
      may appoint shall have the exclusive control and management of the Common Areas
      and shall have the right, from time to time, to establish, modify, amend and
      enforce reasonable rules and regulations (“Rules and Regulations”) for the
      management, safety, care, and cleanliness of the grounds, the parking and
      unloading of vehicles and the preservation of good order, as well as for the
      convenience of other occupants or tenants of the Building and the Project and
      their invitees. Lessee agrees to abide by and conform to all such Rules and
      Regulations, and shall use its best efforts to cause its employees, suppliers,
      shippers, customers, contractors and invitees to so abide and conform. Lessor
      shall not be responsible to Lessee for the non-compliance with said Rules and
      Regulations by other tenants of the Project.

     

    2.10
      Common Areas - Changes. Lessor shall have the right, in Lessor’s sole
      discretion, from time to time:

     

    (a)
      To
      make changes to the Common Areas, including, without limitation, changes in
      the
      location, size, shape and number of driveways, entrances, parking spaces,
      parking areas, loading and unloading areas, ingress, egress, direction of
      traffic, landscaped areas, walkways and utility raceways;

     

    (b)
      To
      close temporarily any of the Common Areas for maintenance purposes so long
      as
      reasonable access to the Premises remains available;

     

    (c)
      To
      designate other land outside the boundaries of the Project to be a part of
      the
      Common Areas;

     

    (d)
      To
      add additional buildings and improvements to the Common Areas;

     

    (e)
      To
      use the Common Areas while engaged in making additional improvements, repairs
      or
      alterations to the Project, or any portion thereof; and

     

    (f)
      To do
      and perform such other acts and make such other changes in, to or with respect
      to the Common Areas and Project as Lessor may, in the exercise of sound business
      judgment, deem to be appropriate.

     

    3.
      Term.

     

    3.1
      Term.
      The Commencement Date, Expiration Date and Original Term of this Lease are
      as
      specified in Paragraph 1.3.

     

    3.2
      Early
      Possession. If Lessee totally or partially occupies the Premises prior to the
      Commencement Date, the obligation to pay Base Rent shall be abated for the
      period of such early possession. All other terms of this Lease (including but
      not limited to the obligations to pay Lessee’s Share of Common Area Operating
      Expenses, Real Property Taxes and insurance premiums and to maintain the
      Premises) shall be in effect during such period. Any such early possession
      shall
      not affect the Expiration Date.

     

    3.3
      Delay
      In Possession. Lessor agrees to use its best commercially reasonable efforts
      to
      deliver possession of the Premises to Lessee by the Commencement Date. If,
      despite said efforts, Lessor is unable to deliver possession as agreed, Lessor
      shall not be subject to any liability therefor, nor shall such failure affect
      the validity of this Lease or change the Expiration Date. Lessee shall not,
      however, be obligated to pay Rent or perform its other obligations until Lessor
      delivers possession of the Premises and any period of rent abatement that Lessee
      would otherwise have enjoyed shall run from the date of the delivery of
      possession and continue for a period equal to what Lessee would otherwise have
      enjoyed, but minus any days of delay caused by the acts or omissions of Lessee.
      If possession is not delivered within 60 days after the Commencement Date,
      Lessee may, at its option, by notice in writing within 10 days after the end
      of
      such 60 day period, cancel this Lease, in which event the Parties shall be
      discharged from all obligations hereunder. If such written notice is not
      received by Lessor within said 10 day period, Lessee’s right to cancel shall
      terminate. Except as otherwise provided, if possession is not tendered to Lessee
      by the Start Date and Lessee does not terminate this Lease, as aforesaid, any
      period of rent abatement that Lessee would otherwise have enjoyed shall run
      from
      the date of delivery of possession and continue for a period equal to what
      Lessee would otherwise have enjoyed under the terms hereof, but minus any days
      of delay caused by the acts or omissions of Lessee. If possession of the
      Premises is not delivered within 4 months after the Commencement Date, this
      Lease shall terminate unless other agreements are reached between Lessor and
      Lessee, in writing.

     

    3.4
      Lessee Compliance. Lessor shall not be required to tender possession of the
      Premises to Lessee until Lessee complies with its obligation to provide evidence
      of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall
      be
      required to perform all of its obligations under this Lease from and after
      the
      Start Date, including the payment of Rent, notwithstanding Lessor’s election to
      withhold possession pending receipt of such evidence of insurance. Further,
      if
      Lessee is required to perform any other conditions prior to or concurrent with
      the Start Date, the Start Date shall occur but Lessor may elect to withhold
      possession until such conditions are satisfied. 

     

    
      4. Rent.

    

     

    4.1
      Rent
      Defined. All monetary obligations of Lessee to Lessor under the terms of this
      Lease (except for the Security Deposit) are deemed to be rent
      (“Rent”).

     

    4.2
      Common Area Operating Expenses. Lessee shall pay to Lessor during the term
      hereof, in addition to the Base Rent, Lessee’s Share (as specified in Paragraph
      1.6) of all Common Area Operating Expenses, as hereinafter defined, during
      each
      calendar year of the term of this Lease, in accordance with the following
      provisions.

     

    (a)
      “Common Area Operating Expenses” are defined, for purposes of this Lease, as all
      costs incurred by Lessor relating to the ownership .and operation of the
      Project, including, but not limited to, the following:

     

    
      	
              

            	 	
              
                

              

            
	
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    (i) The
      operation, repair and maintenance, in neat, clean, good order and condition,
      and
      if necessary the replacement, of the following.

     

    (aa)
      The
      Common Areas and Common Area improvements, including parking areas, loading
      and
      unloading areas, trash areas, roadways, parkways, walkways, driveways,
      landscaped areas, bumpers, irrigation systems, Common Area lighting facilities,
      fences and gates, elevators, roofs, and roof drainage systems

     

    (bb)
      Exterior signs and any tenant directories.

     

    (cc)
      Any
      fire sprinkler systems.

     

    (ii) The
      cost
      of water, gas, electricity and telephone to service the Common Areas and any
      utilities not separately metered

     

    (iii) Trash
      disposal, pest control services, property management, security services, owners’
association dues and fees, the cost to repaint the exterior of any structures
      and the cost of any environmental inspections.

     

    (iv) Reserves
      set aside for maintenance, repair and/or replacement of Common Area improvements
      and equipment.

     

    (v) Real
      Property Taxes (as defined in Paragraph 10).

     

    (vi) The
      cost
      of the premiums for the insurance maintained by Lessor pursuant to Paragraph
      8.

     

    (vii) Any
      deductible portion of an insured loss concerning the Building or the Common
      Areas.

     

    (viii) Auditors,
      accountants’ and attorneys’ fees and costs related to the operation,
      maintenance, repair and replacement of the Project.

     

    (ix) The
      cost
      of any capital improvement to the Building or the Project not covered under
      the
      provisions of Paragraph 2.3 provided, however, that Lessor shall allocate the
      cost of any such capital improvement over a 12 year period and Lessee shall
      not
      be required to pay more than Lessee’s Share of 1/144th of the cost of such
      capital improvement in any given month.

     

    (x) Any
      other
      services to be provided by Lessor that are stated elsewhere in this Lease to
      be
      a Common Area Operating Expense.

     

    (b)
      Any
      Common Area Operating Expenses and Real Property Taxes that are specifically
      attributable to the Unit, the Building or to any other building in the Project
      or to the operation, repair and maintenance thereof, shall be allocated entirely
      to such Unit, Building, or other building. However, any Common Area Operating
      Expenses and Real Property Taxes that are not specifically attributable to
      the
      Building or to any other building or to the operation, repair and maintenance
      thereof, shall be equitably allocated by Lessor to all buildings in the
      Project.

     

    (c)
      The
      inclusion of the improvements, facilities and services set forth in Subparagraph
      4.2(a) shall not be deemed to impose an obligation upon Lessor to either have
      said improvements or facilities or to provide those services unless the Project
      already has the same, Lessor already provides the services, or Lessor has agreed
      elsewhere in this Lease to provide the same or some of them.

     

    (d)
      Lessee’s Share of Common Area Operating Expenses is payable monthly on the same
      day as the Base Rent is due hereunder. The amount of such payments shall be
      based on Lessor’s estimate of the annual Common Area Operating Expenses. Within
      60 days after written request (but not more than once each year) Lessor shall
      deliver to Lessee a reasonably detailed statement showing Lessee’s Share of the
      actual Common Area Operating Expenses incurred during the preceding year. If
      Lessee’s payments during such year exceed Lessee’s Share, Lessor shall credit
      the amount of such over-payment against Lessee’s future payments. If Lessee’s
      payments during such year were less than Lessee’s Share, Lessee shall pay to
      Lessor the amount of the deficiency within 10 days after delivery by Lessor
      to
      Lessee of the statement.

     

    (e)
      Common Area Operating Expenses shall not include any expenses paid by any tenant
      directly to third parties, or as to which Lessor is otherwise reimbursed by
      any
      third party, other tenant, or insurance proceeds.

     

    4.3
      Payment Lessee shall cause payment of Rent to be received by Lessor in lawful
      money of the United States, without offset or deduction (except as specifically
      permitted in this Lease), on or before the day on which it is due. All monetary
      amounts shall be rounded to the nearest whole dollar. In the event that any
      invoice prepared by Lessor is inaccurate such inaccuracy shall not constitute
      a
      waiver and Lessee shall be obligated to pay the amount set forth in this Lease.
      Rent for any period during the term hereof which is for less than one full
      calendar month shall be prorated based upon the actual number of days of said
      month. Payment of Rent shall be made to Lessor at its address stated herein
      or
      to such other persons or place as Lessor may from time to time designate in
      writing. Acceptance of a payment which is less than the amount then due shall
      not be a waiver of Lessor’s rights to the balance of such Rent, regardless of
      Lessor’s endorsement of any check so stating. In the event that any check,
      draft, or other instrument of payment given by Lessee to Lessor is dishonored
      for any reason, Lessee agrees to pay to Lessor the sum of $25 in addition to
      any
      Late Charge and Lessor, at its option, may require all future Rent be paid
      by
      cashier’s check. Payments will be applied first to accrued late charges and
      attorney’s fees, second to accrued interest, then to Base Rent and Common Area
      Operating Expenses, and any remaining amount to any other outstanding charges
      or
      costs.

     

    5.
      Security Deposit. Lessee shall deposit with Lessor upon execution hereof the
      Security Deposit as security for Lessee’s faithful performance of its
      obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults
      under this Lease, Lessor may use, apply or retain all or any portion of said
      Security Deposit for the payment of any amount due Lessor or to reimburse or
      compensate Lessor for any liability, expense, loss or damage which Lessor may
      suffer or incur by reason thereof. If Lessor uses or applies all or any portion
      of the Security Deposit, Lessee shall within 10 days after written request
      therefor deposit monies with Lessor sufficient to restore said Security Deposit
      to the full amount required by this Lease. If the Base Rent increases during
      the
      term of this Lease, Lessee shall, upon written request from Lessor, deposit
      additional monies with Lessor so that the total amount of the Security Deposit
      shall at all times bear the same proportion to the increased Base Rent as the
      initial Security Deposit bore to the initial Base Rent. Should the Agreed Use
      be
      amended to accommodate a material change in the business of Lessee or to
      accommodate a sublessee or assignee, Lessor shall have the right to increase
      the
      Security Deposit to the extent necessary, in Lessor’s reasonable judgment, to
      account for any increased wear and tear that the Premises may suffer as a result
      thereof. If a change in control of Lessee occurs during this Lease and following
      such change the financial condition of Lessee is, in Lessor’s reasonable
      judgment, significantly reduced, Lessee shall deposit such additional monies
      with Lessor as shall be sufficient to cause the Security Deposit to be at a
      commercially reasonable level based on such change in financial condition.
      Lessor shall not be required to keep the Security Deposit separate from its
      general accounts. Within 14 days after the expiration or termination of this
      Lease, if Lessor elects to apply the Security Deposit only to unpaid Rent,
      and
      otherwise within 30 days after the Premises have been vacated pursuant to
      Paragraph 7.4(c) below, Lessor shall return that portion of the Security Deposit
      not used or applied by Lessor. No part of the Security Deposit shall be
      considered to be held in trust, to bear interest or to be prepayment for any
      monies to be paid by Lessee under this Lease.

     

    6
      Use

     

    6.1
      Use.
      Lessee shall use and occupy the Premises only for the Agreed Use, or any other
      legal use which is reasonably comparable thereto, and for no other purpose.
      Lessee shall not use or permit the use of the Premises in a manner that is
      unlawful, creates damage, waste or a nuisance, or that disturbs occupants of
      or
      causes damage to neighboring premises or properties. Other than guide, signal
      and seeing eye dogs, Lessee shall not keep or allow in the Premises any pets,
      animals, birds, fish, or reptiles. Lessor shall not unreasonably withhold or
      delay its consent to any written
      request for a modification of the Agreed Use, so long as the sane will not
      impair the structural integrity of the Building or the mechanical or electrical
      systems therein, and/or is not significantly more burdensome to the Project.
      If
      Lessor elects to withhold consent, Lessor shall within 7 days after such request
      give written notification of same, which notice shall include an explanation
      of
      Lessor’s objections to the change in the Agreed Use.

     

    
      	
              

            	 	
              
                

              

            
	
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    6.2
      Hazardous Substances.

     

    (a)
      Reportable Uses Require Consent. The term “Hazardous Substance” as used in this
      Lease shall mean any product, substance, or waste whose presence, use,
      manufacture, disposal, transportation, or release, either by itself or in
      combination with other materials expected to be on the Premises, is either:
      (i)
      potentially injurious to the public health, safety or welfare, the environment
      or the Premises, (ii) regulated or monitored by any governmental authority,
      or
      (iii) a basis for potential liability of Lessor to any governmental agency
      or
      third party under any applicable statute or common law theory. Hazardous
      Substances shall include, but not be limited to, hydrocarbons, petroleum,
      gasoline, and/or crude oil or any products, by-products or fractions thereof.
      Lessee shall not engage in any activity in or on the Premises which constitutes
      a Reportable Use of Hazardous Substances without the express prior written
      consent of Lessor and timely compliance (at Lessee’s expense) with all
      Applicable Requirements. “Reportable Use” shall mean (i) the installation or use
      of any above or below ground storage tank, (ii) the generation, possession,
      storage, use, transportation, or disposal of a Hazardous Substance that requires
      a permit from, or with respect to which a report, notice, registration or
      business plan is required to be filed with, any governmental authority, and/or
      (iii) the presence at the Premises of a Hazardous Substance with respect to
      which any Applicable Requirements requires that a notice be given to persons
      entering or occupying the Premises or neighboring properties. Notwithstanding
      the foregoing, Lessee may use any ordinary and customary materials reasonably
      required to be used in the normal course of the Agreed Use, ordinary office
      supplies (copier toner, liquid paper, glue, etc.) and common household cleaning
      materials, so long as such use is in compliance with all Applicable
      Requirements, is not a Reportable Use, and does not expose the Premises or
      neighboring property to any meaningful risk of contamination or damage or expose
      Lessor to any liability therefor. In addition, Lessor may condition its consent
      to any Reportable Use upon receiving such additional assurances as Lessor
      reasonably deems necessary to protect itself, the public, the Premises and/or
      the environment against damage, contamination, injury and/or liability,
      including, but not limited to, the installation (and removal on or before Lease
      expiration or termination) of protective modifications (such as concrete
      encasements) and/or increasing the Security Deposit.

     

    (b)
      Duty
      to Inform Lessor. If Lessee knows, or has reasonable cause to believe, that
      a
      Hazardous Substance has come to be located in, on under or about the Premises,
      other than as previously consented to by Lessor, Lessee shall immediately give
      written notice of such fact to Lessor, and provide Lessor with a copy of any
      report, notice, claim or other documentation which it has concerning the
      presence of such Hazardous Substance.

     

    (c)
      Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance
      to
      be spilled or released in, on, under, or about the Premises (including through
      the plumbing or sanitary sewer system) and shall promptly, at Lessee’s expense,
      comply with all Applicable Requirements and take all investigatory and/or
      remedial action reasonably recommended, whether or not formally ordered or
      required, for the cleanup of any contamination of and for the maintenance,
      security and/or monitoring of the Premises or neighboring properties, that
      was
      caused or materially contributed to by Lessee, or pertaining to or involving
      any
      Hazardous Substance brought onto the Premises during the term of this Lease,
      by
      or for Lessee or any third party.

     

    (d)
      Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its
      agents, employees, lenders and ground lessor, if any, harmless from and against
      any and all loss of rents and/or damages, liabilities, judgments, claims,
      expenses, penalties, and attorneys’ and consultants’ fees arising out of or
      involving any Hazardous Substance brought onto the Premises by or for Lessee,
      or
      any third party (provided, however, that Lessee shall have no liability under
      this Lease with respect to underground migration of any Hazardous Substance
      under the Premises from areas outside of the Project not caused or contributed
      to by Lessee). Lessee’s obligations shall include, but not be limited to, the
      effects of any contamination or injury to person, property or the environment
      created or suffered by Lessee, and the cost of investigation, removal,
      remediation, restoration and/or abatement, and shall survive the expiration
      or
      termination of this Lease. No termination, cancellation or release agreement
      entered into by Lessor and Lessee shall release Lessee from its obligations
      under this Lease with respect to Hazardous Substances, unless specifically
      so
      agreed by Lessor in writing at the time of such agreement.

     

    (e)
      Lessor Indemnification. Lessor and its successors and assigns shall indemnify,
      defend, reimburse and hold Lessee. its employees and lenders, harmless from
      and
      against any and all environmental damages, including the cost of remediation,
      which are suffered as a direct result of Hazardous Substances on the Premises
      prior to Lessee taking possession or which are caused by the gross negligence
      or
      willful misconduct of Lessor, its agents or employees. Lessor’s obligations, as
      and when required by the Applicable Requirements, shall include, but not be
      limited to, the cost of investigation, removal, remediation, restoration and/or
      abatement, and shall survive the expiration or termination of this
      Lease.

     

    (f)
      Investigations and Remediations. Lessor shall retain the responsibility and
      pay
      for any investigations or remediation measures required by governmental entities
      having jurisdiction with respect to the existence of Hazardous Substances on
      the
      Premises prior to the Lessee taking possession, unless such remediation measure
      is required as a result of Lessee’s use (including “Alterations”, as defined in
      paragraph 7. 3(a) below) of the Premises, in which event Lessee shall be
      responsible for such payment. Lessee shall cooperate fully in any such
      activities at the request of Lessor, including allowing Lessor and Lessor’s
      agents to have reasonable access to the Premises at reasonable times in order
      to
      carry out Lessor’s investigative and remedial responsibilities.

     

    (g)
      Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph
      9.1(e)) occurs during the term of this Lease, unless Lessee is legally
      responsible therefor (in which case Lessee shall make the investigation and
      remediation thereof required by the Applicable Requirements and this Lease
      shall
      continue in full force and effect, but subject to Lessor’s rights under
      Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor’s option, either (i)
      investigate and remediate such Hazardous Substance Condition, if required,
      as
      soon as reasonably possible at Lessor’s expense, in which event this Lease shall
      continue in full force and effect, or (ii) if the estimated cost to remediate
      such condition exceeds 12 times the then monthly Base Rent or $100,000,
      whichever is greater, give written notice to Lessee, within 30 days after
      receipt by Lessor of knowledge of the occurrence of such Hazardous Substance
      Condition, of Lessor’s desire to terminate this Lease as of the date 60 days
      following the date of such notice. In the event Lessor elects to give a
      termination notice, Lessee may, within 10 days thereafter, give written notice
      to Lessor of Lessee’s commitment to pay the amount by which the cost of the
      remediation of such Hazardous Substance Condition exceeds an amount equal to
      12
      times the then monthly Base Rent or $100,000, whichever is greater Lessee shall
      provide Lessor with said funds or satisfactory assurance thereof within 30
      days
      following such commitment. In such event, this Lease shall continue in full
      force and effect, and Lessor shall proceed to make such remediation as soon
      as
      reasonably possible after the required funds are available. If Lessee does
      not
      give such notice and provide the required funds or assurance thereof within
      the
      time provided, this Lease shall terminate as of the date specified in Lessor’s
      notice of termination.

     

    6.3
      Lessee’s Compliance with Applicable Requirements. Except as otherwise provided
      in this Lease, Lessee shall, at Lessee’s sole expense, fully, diligently and in
      a timely manner, materially comply with all Applicable Requirements, the
      requirements of any applicable fire insurance underwriter or rating bureau,
      and
      the recommendations of Lessor’s engineers and/or consultants which relate in any
      manner to such Requirements, without regard to whether said Requirements are
      now
      in effect or become effective after the Start Date. Lessee shall, within 10
      days
      after receipt of Lessor’s written request, provide Lessor with copies of all
      permits and other documents, and other information evidencing Lessee’s
      compliance with any Applicable Requirements specified by Lessor, and shall
      immediately upon receipt, notify Lessor in writing (with copies of any documents
      involved) of any threatened or actual claim, notice, citation, warning,
      complaint or report pertaining to or involving the failure of Lessee or the
      Premises
      to comply with any Applicable Requirements Likewise, Lessee shall immediately
      give written notice to Lessor of: (i) any water damage to the Premises and
      any
      suspected seepage, pooling, dampness or other condition conducive to the
      production of mold, or (ii) any mustiness or other odors that might indicate
      the
      presence of mold in the Premises.

     

    
      	
              

            	 	
              
                

              

            
	
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    6.4
      Inspection; Compliance. Lessor and Lessor’s “Lender” (as defined in Paragraph
      30) and consultants shall have the right to enter into Premises at any time,
      in
      the case of an emergency, and otherwise at reasonable times after reasonable
      notice, for the purpose of inspecting the condition of the Premises and for
      verifying compliance by Lessee with this Lease. The cost of any such inspections
      shall be paid by Lessor, unless a violation of Applicable Requirements, or
      a
      Hazardous Substance condition (see Paragraph 9.1) is found to exist or be
      imminent, or the inspection is requested or ordered by a governmental authority.
      In such case, Lessee shall upon request reimburse Lessor for the cost of such
      inspection, so long as such inspection is reasonably related to the violation
      or
      contamination. In addition, Lessee shall provide copies of all relevant material
      safety data sheets (MSDS) to Lessor within 10 days of the receipt of written
      request therefor.

     

    7.
      Maintenance; Repairs, Utility Installations; Trade Fixtures and
      Alterations.

     

    7.1
      Lessee’s Obligations

     

    (a)
      In
      General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3
      (Compliance), 6.3 (Lessee’s Compliance with Applicable Requirements), 7.2
      (Lessor’s Obligations). 9 (Damage or Destruction), and 14 (Condemnation), Lessee
      shall, at Lessee’s sole expense, keep the Premises, Utility Installations
      (intended for Lessee’s exclusive use, no matter where located), and Alterations
      in good order, condition and repair (whether or not the portion of the Premises
      requiring repairs, or the means of repairing the same, are reasonably or readily
      accessible to Lessee, and whether or not the need for such repairs occurs as
      a
      result of Lessee’s use, any prior use, the elements or the age of such portion
      of the Premises), including, but not limited to, all equipment or facilities,
      such as plumbing, HVAC equipment, electrical, lighting facilities, boilers,
      pressure vessels, fixtures, interior walls, interior surfaces of exterior walls,
      ceilings, floors, windows, doors, plate glass, and skylights but excluding
      any
      items which are the responsibility of Lessor pursuant to Paragraph 7.2. Lessee,
      in keeping the Premises in good order, condition and repair, shall exercise
      and
      perform good maintenance practices, specifically including the procurement
      and
      maintenance of the service contracts required by Paragraph 7.1(b) below.
      Lessee’s obligations shall include restorations, replacements or renewals when
      necessary to keep the Premises and all improvements thereon or a part thereof
      in
      good order. condition and state of repair.

     

    (b)
      Service Contracts. Lessee shall, at Lessee’s sole expense, procure and maintain
      contracts, with copies to Lessor, in customary form and substance for, and
      with
      contractors specializing and experienced in the maintenance of the following
      equipment and improvements, if any, if and when installed on the Premises:
      (i)
      HVAC equipment, (ii) boiler and pressure vessels, (iii) clarifiers, and (iv)
      any
      other equipment, if reasonably required by Lessor. However, Lessor reserves
      the
      right, upon notice to Lessee, to procure and maintain any or all of such service
      contracts and Lessee shall reimburse Lessor, upon demand, for the cost
      thereof.

     

    (c)
      Failure to Perform. If Lessee fails to perform Lessee’s obligations under this
      Paragraph 7.1, Lessor may enter upon the Premises after 10 days’ prior written
      notice to Lessee (except in the case of an emergency, in which case no notice
      shall be required), perform such obligations on Lessee’s behalf, and put the
      Premises in good order, condition and repair, and Lessee shall promptly pay
      to
      Lessor a sum equal to 115% of the cost thereof.

     

    (d)
      Replacement Subject to Lessee’s indemnification of Lessor as set forth in
      Paragraph 8.7 below, and without relieving Lessee of liability resulting from
      Lessee’s failure to exercise and perform good maintenance practices, if an item
      described in Paragraph 7.1(b) cannot be repaired other than at a cost which
      is
      in excess of 50% of the cost of replacing such item, then such item shall be
      replaced by Lessor, and the cost thereof shall be prorated between the Parties
      and Lessee shall only be obligated to pay, each month during the remainder
      of
      the term of this Lease, on the date on which Base Rent is due, an amount equal
      to the product of multiplying the cost of such replacement by a fraction, the
      numerator of which is one, and the denominator of which is 144 (i.e. 1/144th
      of
      the cost per month). Lessee shall pay Interest on the unamortized balance but
      may prepay its obligation at any time.

     

    7.2
      Lessor’s Obligations. Subject to the provisions of Paragraphs 2.2 (Condition),
      2.3 (Compliance), 4.2 (Common Area Operating Expenses), 6 (Use), 7.1 (Lessee’s
      Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessor, subject
      to reimbursement pursuant to Paragraph 4.2, shall keep in good order, condition
      and repair the foundations, exterior walls, structural condition of interior
      bearing walls, exterior roof, fire sprinkler system, Common Area fire alarm
      and/or smoke detection systems, fire hydrants, parking lots, walkways, parkways,
      driveways, landscaping, fences, signs and utility systems serving the Common
      Areas and all parts thereof, as well as providing the services for which there
      is a Common Area Operating Expense pursuant to Paragraph 4.2. Lessor shall
      not
      be obligated to paint the exterior or interior surfaces of exterior walls nor
      shall Lessor be obligated to maintain, repair or replace windows, doors or
      plate
      glass of the Premises. Lessee expressly waives the benefit of any statute now
      or
      hereafter in effect to the extent it is inconsistent with the terms of this
      Lease.

     

    7.3
      Utility Installations; Trade Fixtures; Alterations.

     

    (a)
      Definitions. The term “Utility Installations” refers to all floor and window
      coverings, air and/or vacuum lines, power panels, electrical distribution,
      security and fire protection systems, communication cabling, lighting fixtures,
      HVAC equipment, plumbing, and fencing in or on the Premises. The term “Trade
      Fixtures” shall mean Lessee’s machinery and equipment that can be removed
      without doing material damage to the Premises. The term “Alterations” shall mean
      any modification of the improvements, other than Utility Installations or Trade
      Fixtures, whether by addition or deletion. “Lessee Owned Alterations and/or
      Utility Installations” are defined as Alterations and/or Utility Installations
      made by Lessee that are not yet owned by Lessor pursuant to Paragraph
      7.4(a).

     

    (b)
      Consent. Lessee shall not make any Alterations or Utility Installations to
      the
      Promises without Lessor’s prior written consent. Lessee may, however, make
      non-structural Utility Installations to the interior of the Premises (excluding
      the roof) without such consent but upon notice to Lessor, as long as they are
      not visible from the outside, do not involve puncturing, relocating or removing
      the roof or any existing walls, will not affect the electrical, plumbing, HVAC,
      and/or life safety systems, and the cumulative cost thereof during this Lease
      as
      extended does not exceed a sum equal to 3 month’s Base Rent in the aggregate or
      a sum equal to one month’s Base Rent in any one year. Notwithstanding the
      foregoing, Lessee shall not make or permit any roof penetrations and/or install
      anything on the roof without the prior written approval of Lessor. Lessor may,
      as a precondition to granting such approval, require Lessee to utilize a
      contractor chosen and/or approved by Lessor. Any Alterations or Utility
      Installations that Lessee shall desire to make and which require the consent
      of
      the Lessor shall be presented to Lessor in written form with detailed plans.
      Consent shall be deemed conditioned upon Lessee’s: (i) acquiring all applicable
      governmental permits, (ii) furnishing Lessor with copies of both the permits
      and
      the plans and specifications prior to commencement of the work, and (iii)
      compliance with all conditions of said permits and other Applicable Requirements
      in a prompt and expeditious manner. Any Alterations or Utility Installations
      shall be performed in a workmanlike manner with good and sufficient materials.
      Lessee shall promptly upon completion furnish Lessor with as-built plans and
      specifications. For work which costs an amount in excess of one month’s Base
      Rent, Lessor may condition its consent upon Lessee providing a lien and
      completion bond in an amount equal to 150% of the estimated cost of such
      Alteration or Utility Installation and/or upon Lessee’s posting an additional
      Security Deposit with Lessor.

     

    (c)
      Liens; Bonds Lessee shall pay, when due all claims for labor or materials
      furnished or alleged to have been furnished to or for Lessee at or for use
      on
      the Premises, which claims are or may be secured by any mechanic’s or
      materialman’s lien against the Premises or any interest therein. Lessee shall
      give Lessor not less than 10 days notice prior to the commencement of any work
      in, on or about the Premises, and Lessor shall have the right to post notices
      of
      non-responsibility. If Lessee shall contest the validity of any such lien,
      claim
      or demand, then Lessee shall
      at
      its sole expense defend and protect itself, Lessor and the Promises against
      the
      same and shall pay and satisfy any such adverse judgment that may be rendered
      thereon before the enforcement thereof. If Lessor shall require, Lessee shall
      furnish a surety bond in an amount equal to 150% of the amount of such contested
      lien, claim or demand, indemnifying Lessor against liability for the same.
      If
      Lessor elects to participate in any such action, Lessee shall pay Lessors
      attorneys’ fees and costs.

     

    
      	
              

            	 	
              
                

              

            
	
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    7.4
      Ownership; Removal; Surrender; and Restoration.

     

    (a)
      Ownership Subject to Lessor’s right to require removal or elect ownership as
      hereinafter provided, all Alterations and Utility Installations made by Lessee
      shall be the property of Lessee, but considered a part of the Premises. Lessor
      may, at any time, elect in writing to be the owner of all or any specified
      part
      of the Lessee Owned Alterations and Utility Installations. Unless otherwise
      instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility
      Installations shall, at the expiration or termination of this Lease, become
      the
      property of Lessor and be surrendered by Lessee with the Premises.

     

    (b)
      Removal. By delivery to Lessee of written notice from Lessor not earlier than
      90
      and not later than 30 days prior to the end of the term of this Lease, Lessor
      may require that any or all Lessee Owned Alterations or Utility Installations
      be
      removed by the expiration or termination of this Lease. Lessor may require
      the
      removal at any time of all or any part of any Lessee Owned Alterations or
      Utility Installations made without the required consent

     

    (c)
      Surrender; Restoration. Lessee shall surrender the Premises by the Expiration
      Date or any earlier termination date, with all of the improvements, parts and
      surfaces thereof broom clean and free of debris, and in good operating order,
      condition and state of repair, ordinary wear and tear excepted. “Ordinary wear
      and tear” shall not include any damage or deterioration that would have been
      prevented by good maintenance practice. Notwithstanding the foregoing, if this
      Lease is for 12 months or less, then Lessee shall surrender the Premises in
      the
      same condition as delivered to Lessee on the Start Date with NO allowance for
      ordinary wear and tear. Lessee shall repair any damage occasioned by the
      installation, maintenance or removal of Trade Fixtures, Lessee owned Alterations
      and/or Utility Installations, furnishings, and equipment as well as the removal
      of any storage tank installed by or for Lessee. Lessee shall also completely
      remove from the Premises any and all Hazardous Substances brought onto the
      Premises by or for Lessee, or any third party (except Hazardous Substances
      which
      were deposited via underground migration from areas outside of the Project)
      even
      if such removal would require Lessee to perform or pay for work that exceeds
      statutory requirements. Trade Fixtures shall remain the property of Lessee
      and
      shall be removed by Lessee. Any personal property of Lessee not removed on
      or
      before the Expiration Date or any earlier termination date shall be deemed
      to
      have been abandoned by Lessee and may be disposed of or retained by Lessor
      as
      Lessor may desire. The failure by Lessee to timely vacate the Premises pursuant
      to this Paragraph 7.4(c) without the express written consent of Lessor shall
      constitute a holdover under the provisions of Paragraph 26 below.

     

    8.
      Insurance; Indemnity.

     

    8.1
      Payment of Premiums. The cost of the premiums for the insurance policies
      required to be carried by Lessor, pursuant to Paragraphs 8.2(b), 8.3(a) and
      8.3(b), shall be a Common Area Operating Expense. Premiums for policy periods
      commencing prior to, or extending beyond. the term of this Lease shall be
      prorated to coincide with the corresponding Start Date or Expiration
      Date.

     

    8.2
      Liability Insurance.

     

    (a)
      Carried by Lessee. Lessee shall obtain and keep in force a Commercial General
      Liability policy of insurance protecting Lessee and Lessor as an additional
      insured against claims for bodily injury, personal injury and property damage
      based upon or arising out of the ownership, use, occupancy or maintenance of
      the
      Premises and all areas appurtenant thereto. Such insurance shall be on an
      occurrence basis providing single limit coverage in an amount not less than
      $1,000,000 per occurrence with an annual aggregate of not less than $2,000,000.
      Lessee shall add Lessor as an additional insured by means of an endorsement
      at
      least as broad as the Insurance Service Organization’s “Additional
      Insured-Managers or Lessors of Premises” Endorsement and coverage shall also be
      extended to include damage caused by heat, smoke or fumes from a hostile fire.
      The policy shall not contain any intra-insured exclusions as between insured
      persons or organizations, but shall include coverage for liability assumed
      under
      this Lease as an “insured contract” for the performance of Lessee’s indemnity
      obligations under this Lease. The limits of said insurance shall not, however,
      limit the liability of Lessee nor relieve Lessee of any obligation hereunder.
      Lessee shall provide an endorsement on its liability policy(ies) which provides
      that its insurance shall be primary to and not contributory with any similar
      insurance carried by Lessor, whose insurance shall be considered excess
      insurance only.

     

    (b)
      Carried by Lessor. Lessor shall maintain liability insurance as described in
      Paragraph 8.2(a), in addition to, and not in lieu of, the insurance required
      to
      be maintained by Lessee. Lessee shall not be named as an additional insured
      therein.

     

    8.3
      Property Insurance - Building, Improvements and Rental Value.

     

    (a)
      Building and Improvements. Lessor shall obtain and keep in force a policy or
      policies of insurance in the name of Lessor, with loss payable to Lessor, any
      ground-lessor, and to any Lender insuring loss or damage to the Premises. The
      amount of such insurance shall be equal to the full insurable replacement cost
      of the Premises, as the same shall exist from time to time, or the amount
      required by any Lender, but in no event more than the commercially reasonable
      and available insurable value thereof. Lessee Owned Alterations and Utility
      Installations, Trade Fixtures, and Lessee’s personal property shall be insured
      by Lessee under Paragraph 8.4. If the coverage is available and commercially
      appropriate, such policy or policies shall insure against all risks of direct
      physical loss or damage (except the perils of flood and/or earthquake unless
      required by a Lender), including coverage for debris removal and the enforcement
      of any Applicable Requirements requiring the upgrading, demolition,
      reconstruction or replacement of any portion of the Premises as the result
      of a
      covered loss. Said policy or policies shall also contain an agreed valuation
      provision in lieu of any coinsurance clause, waiver of subrogation, and
      inflation guard protection causing an increase in the annual property insurance
      coverage amount by a factor of not less than the adjusted U.S. Department of
      Labor Consumer Price Index for All Urban Consumers for the city nearest to
      where
      the Premises are located. If such insurance coverage has a deductible clause,
      the deductible amount shall not exceed $1,000 per occurrence.

     

    (b)
      Rental Value. Lessor shall also obtain and keep in force a policy or policies
      in
      the name of Lessor with loss payable to Lessor and any Lender, insuring the
      loss
      of the full Rent for one year with an extended period of indemnity for an
      additional 180 days (“Rental
      Value Insurance”).
      Said
      insurance shall contain an agreed valuation provision in lieu of any coinsurance
      clause, and the amount of coverage shall be adjusted annually to reflect the
      projected Rent otherwise payable by Lessee, for the next 12 month
      period.

     

    (c)
      Adjacent Promises. Lessee shall pay for any increase in the premiums for the
      property insurance of the Building and for the Common Areas or other buildings
      in the Project if said increase is caused by Lessee’s acts, omissions, use or
      occupancy of the Premises.

     

    (d)
      Lessee’s Improvements. Since Lessor is the Insuring Party, Lessor shall not be
      required to insure Lessee Owned Alterations and Utility installations unless
      the
      item in question has become the property of Lessor under the terms of this
      Lease.

     

    8.4
      Lessee’s Property; Business Interruption Insurance.

     

    (a)
      Property Damage. Lessee shall obtain and maintain insurance coverage on all
      of
      Lessee’s personal property, Trade Fixtures, and Lessee Owned Alterations and
      Utility Installations. Such insurance shall be full replacement cost coverage
      with a deductible of not to exceed $1,000 per occurrence. The proceeds from
      any
      such insurance shall be used by Lessee for the replacement of personal property,
      Trade Fixtures and Lessee Owned Alterations and Utility Installations. Lessee
      shall provide Lessor with written evidence that such insurance is in
      force.

     

    (b)
      Business Interruption. Lessee shall obtain and maintain loss of income and
      extra
      expense insurance in amounts as will reimburse Lessee for direct or indirect
      loss of earnings attributable to all perils commonly insured against by prudent
      lessees in the business of Lessee or
      attributable to prevention of access to the Premises as a result of such
      perils.

     

    
      	
              

            	 	
              
                

              

            
	
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    (c)
      No
      Representation of Adequate Coverage. Lessor makes no representation that the
      limits or forms of coverage of insurance specified herein are adequate to cover
      Lessee’s property, business operations or obligations under this
      Lease.

     

    8.5
      Insurance Policies. Insurance required herein shall be by companies duly
      licensed or admitted to transact business in the state where the Premises are
      located and maintaining during the policy term a “General Policyholders Rating”
of at least A-, VI, as set forth in the most current issue of “Best’s Insurance
      Guide”, or such other rating as may be required by a Lender. Lessee shall not do
      or permit to be done anything which invalidates the required insurance policies.
      Lessee shall, prior to the Start Date, deliver to Lessor certified copies of
      policies of such insurance or certificates evidencing the existence and amounts
      of the required insurance. No such policy shall be cancelable or subject to
      modification except after 30 days prior written notice to Lessor. Lessee shall,
      at least 10 days prior to the expiration of such policies, furnish Lessor with
      evidence of renewals or “insurance binders” evidencing renewal thereof, or
      Lessor may order such insurance and charge the cost thereof to Lessee, which
      amount shall be payable by Lessee to Lessor upon demand. Such policies shall
      be
      for a term of at least one year, or the length of the remaining term of this
      Lease, whichever is less. If either Party shall fail to procure and maintain
      the
      insurance required to be carried by it, the other Party may, but shall not
      be
      required to procure and maintain the same.

     

    8.6
      Waiver of Subrogation. Without affecting any other rights or remedies, Lessee
      and Lessor each hereby release and relieve the other, and waive their entire
      right to recover damages against the other, for loss of or damage to its
      property arising out of or incident to the perils required to be insured against
      herein. The effect of such releases and waivers is not limited by the amount
      of
      insurance, carried or required, or by any deductibles applicable hereto. The
      Parties agree to have their respective property damage insurance carriers waive
      any right to subrogation that such companies may have against Lessor or Lessee,
      as the case may be, so long as the insurance is not invalidated
      thereby.

     

    8.7
      Indemnity. Except for Lessor’s gross negligence or willful misconduct, Lessee
      shall indemnify, protect, defend and hold harmless the Premises, Lessor and
      its
      agents, Lessor’s master or ground lessor, partners and Lenders, from and against
      any and all claims, loss of rents and/or damages, liens, judgments, penalties,
      attorneys’ and consultants’ fees, expenses and/or liabilities arising out of,
      involving, or in connection with, the use and/or occupancy of the Premises
      by
      Lessee. If any action or proceeding is brought against Lessor by reason of
      any
      of the foregoing matters, Lessee shall upon notice defend the same at Lessee’s
      expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate
      with Lessee in such defense. Lessor need not have first paid any such claim
      in
      order to be defended or indemnified.

     

    8.8
      Exemption of Lessor from Liability. Lessor shall not be liable for injury or
      damage to the person or goods, wares, merchandise or other property of Lessee,
      Lessee’s employees, contractors, invitees, customers, or any other person in or
      about the Premises, whether such damage or injury is caused by or results from
      fire, steam, electricity, gas, water or rain, indoor air quality, the presence
      of mold or from the breakage, leakage, obstruction or other defects of pipes,
      fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures, or
      from
      any other cause, whether the said injury or damage results from conditions
      arising upon the Premises or upon other portions of the Building, or from other
      sources or places. Lessor shall not be liable for any damages arising from
      any
      act or neglect of any other tenant of Lessor nor from the failure of Lessor
      to
      enforce the provisions of any other lease in the Project. Notwithstanding
      Lessor’s negligence or breach of this Lease, Lessor shall under no circumstances
      be liable for injury to Lessee’s business or for any loss of income or profit
      therefrom.

     

    8.9
      Failure to Provide Insurance. Lessee acknowledges that any failure on its part
      to obtain or maintain the insurance required herein will expose Lessor to risks
      and potentially cause Lessor to incur costs not contemplated by this Lease,
      the
      extent of which will be extremely difficult to ascertain Accordingly, for any
      month or portion thereof that Lessee does not maintain the required insurance
      and/or does not provide Lessor with the required binders or certificates
      evidencing the existence of the required insurance, the Base Rent shall be
      automatically increased, without any requirement for notice to Lessee, by an
      amount equal to 10% of the then existing Base Rent or $100, whichever is
      greater. The parties agree that such increase in Base Rent represents fair
      and
      reasonable compensation for the additional risk/costs that Lessor will incur
      by
      reason of Lessee’s failure to maintain the required insurance. Such increase in
      Base Rent shall in no event constitute a waiver of Lessee’s Default or Breach
      with respect to the failure to maintain such insurance, prevent the exercise
      of
      any of the other rights and remedies granted hereunder, nor relieve Lessee
      of
      its obligation to maintain the insurance specified in this Lease.

     

    9.
      Damage
      or Destruction.

     

    9.1
      Definitions.

     

    (a)
      “Premises Partial Damage” shall mean damage or destruction to the improvements
      on the Premises, other than Lessee Owned Alterations and Utility Installations,
      which can reasonably be repaired in 3
      months
      or less from the date of the damage or destruction, and the cost thereof does
      not exceed a sum equal to 6
      month’s
      Base Rent. Lessor shall notify Lessee in writing within 30 days from the date
      of
      the damage or destruction as to whether or not the damage is Partial or Total.
      Notwithstanding the foregoing, Premises Partial Damage shall not include damage
      to windows, doors, and/or other similar items which Lessee has the
      responsibility to repair or replace pursuant to the provisions of Paragraph
      7.1

     

    (b)
      “Premises Total Destruction” shall mean damage or destruction to the
      improvements on the Premises, other than Lessee Owned Alterations and Utility
      Installations and Trade Fixtures, which cannot reasonably be repaired in 3
      months or less from the date of the damage or destruction and/or the cost
      thereof exceeds a sum equal to 6 month’s Base Rent. Lessor shall notify Lessee
      in writing within 30 days from the date of the damage or destruction as to
      whether or not the damage is Partial or Total.

     

    (c)
      “Insured Loss” shall mean damage or destruction to improvements on the Premises,
      other than Lessee Owned Alterations and Utility Installations and Trade
      Fixtures, which was caused by an event required to be covered by the insurance
      described in Paragraph 8.3(a), irrespective of any deductible amounts or
      coverage limits involved.

     

    (d)
      “Replacement Cost” shall mean the cost to repair or rebuild the improvements
      owned by Lessor at the time of the occurrence to their condition existing
      immediately prior thereto, including demolition, debris removal and upgrading
      required by the operation of Applicable Requirements, and without deduction
      for
      depreciation.

     

    (e)
      “Hazardous Substance Condition” shall mean the occurrence or discovery of a
      condition involving the presence of, or a contamination by, a Hazardous
      Substance as defined in Paragraph 6.2(a), in, on, or under the Premises which
      requires repair, remediation, or restoration.

     

    9.2
      Partial Damage - Insured Loss. If a Premises Partial Damage that is an Insured
      Loss occurs, then Lessor shall, at Lessor’s expense, repair such damage (but not
      Lessee’s Trade Fixtures or Lessee Owned Alterations and Utility Installations)
      as soon as reasonably possible and this Lease shall continue in full force
      and
      effect, provided, however, that Lessee shall, at Lessor’s election, make the
      repair of any damage or destruction the total cost to repair of which is $10,000
      or less, and, in such event, Lessor shall make any applicable insurance proceeds
      available to Lessee on a reasonable basis for that purpose. Notwithstanding
      the
      foregoing, if the required insurance was not in force or the insurance proceeds
      are not sufficient to effect such repair, the Insuring Party shall promptly
      contribute the shortage in proceeds as and when required to complete said
      repairs. In the event, however, such shortage was due to the fact that, by
      reason of the unique nature of the improvements, full replacement cost insurance
      coverage was not commercially reasonable and available, Lessor shall have no
      obligation to pay for the shortage in insurance proceeds or to fully restore
      the
      unique aspects of the Premises unless Lessee provides Lessor with the funds
      to
      cover same, or adequate assurance thereof, within 10 days following receipt
      of
      written notice of such shortage and request therefor. If Lessor receives said
      funds or adequate assurance thereof within said 10 day period,
      the party responsible for making the repairs shall complete them as soon as
      reasonably possible and this Lease shall remain in full force and effect. If
      such funds or assurance are not received, Lessor may nevertheless elect by
      written notice to Lessee within 10 days thereafter to (i) make such restoration
      and repair as is commercially reasonable with Lessor paying any shortage in
      proceeds, in which case this Lease shall remain in full force and effect. or
      (ii) have this Lease terminate 30 days thereafter. Lessee shall not be entitled
      to reimbursement of any funds contributed by Lessee to repair any such damage
      or
      destruction. Premises Partial Damage due to flood or earthquake shall be subject
      to Paragraph 9.3, notwithstanding that there may be some insurance coverage,
      but
      the net proceeds of any such insurance shall be made available for the repairs
      if made by either Party.

    
      	
              

            	 	
              
                

              

            
	
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    9.3
      Partial Damage - Uninsured Loss. If a Premises Partial Damage that is not an
      Insured Loss occurs, unless caused by a negligent or willful act of Lessee
      (in
      which event Lessee shall make the repairs at Lessee’s expense), Lessor may
      either. (i) repair such damage as soon as reasonably possible at Lessor’s
      expense, in which event this Lease shall continue in full force and effect,
      or
      (ii) terminate this Lease by giving written notice to Lessee within 30 days
      after receipt by Lessor of knowledge of the occurrence of such damage. Such
      termination shall be effective 60 days following the date of such notice. In
      the
      event Lessor elects to terminate this Lease, Lessee shall have the right within
      10 days after receipt of the termination notice to give written notice to Lessor
      of Lessee’s commitment to pay for the repair of such damage without
      reimbursement from Lessor. Lessee shall provide Lessor with said funds or
      satisfactory assurance thereof within 30 days after making such commitment.
      In
      such event this Lease shall continue in full force and effect, and Lessor shall
      proceed to make such repairs as soon as reasonably possible after the required
      funds are available. If Lessee does not make the required commitment, this
      Lease
      shall terminate as of the date specified in the termination notice.

     

    9.4
      Total
      Destruction. Notwithstanding any other provision hereof, if a Premises Total
      Destruction occurs, this Lease shall terminate 60 days following such
      Destruction. If the damage or destruction was caused by the gross negligence
      or
      willful misconduct of Lessee, Lessor shall have the right to recover Lessor’s
      damages from Lessee, except as provided in Paragraph 8.6.

     

    9.5
      Damage Near End of Term. If at any time during the last 6 months of this Lease
      there is damage for which the cost to repair exceeds one month’s Base Rent,
      whether or not an Insured Loss, Lessor may terminate this Lease effective 60
      days following the date of occurrence of such damage by giving a written
      termination notice to Lessee within 30 days after the date of occurrence of
      such
      damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable
      option to extend this Lease or to purchase the Premises, then Lessee may
      preserve this Lease by, (a) exercising such option and (b) providing Lessor
      with
      any shortage in insurance proceeds (or adequate assurance thereof) needed to
      make the repairs on or before the earlier of (i) the date which is 10 days
      after
      Lessee’s receipt of Lessor’s written notice purporting to terminate this Lease,
      or (ii) the day prior to the date upon which such option expires. If Lessee
      duly
      exercises such option during such period and provides Lessor with funds (or
      adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor
      shall, at Lessor’s commercially reasonable expense, repair such damage as soon
      as reasonably possible and this Lease shall continue in full force and effect.
      If Lessee fails to exercise such option and provide such funds or assurance
      during such period, then this Lease shall terminate on the date specified in
      the
      termination notice and Lessee’s option shall be extinguished.

     

    9.6
      Abatement of Rent; Lessee’s Remedies.

     

    (a)
      Abatement. In the event of Premises Partial Damage or Premises Total Destruction
      or a Hazardous Substance Condition for which Lessee is not responsible under
      this Lease, the Rent payable by Lessee for the period required for the repair,
      remediation or restoration of such damage shall be abated in proportion to
      the
      degree to which Lessee’s use of the Premises is impaired, but not to exceed the
      proceeds received from the Rental Value insurance. All other obligations of
      Lessee hereunder shall be performed by Lessee, and Lessor shall have no
      liability for any such damage, destruction, remediation, repair or restoration
      except as provided herein.

     

    (b)
      Remedies. If Lessor shall be obligated to repair or restore the Premises and
      does not commence, in a substantial and meaningful way, such repair or
      restoration within 90 days after such obligation shall accrue, Lessee may,
      at
      any lime prior to the commencement of such repair or restoration, give written
      notice to Lessor and to any Lenders of which Lessee has actual notice, of
      Lessee’s election to terminate this Lease on a date not less than 60 days
      following the giving of such notice. If Lessee gives such notice and such repair
      or restoration is not commenced within 30 days thereafter, this Lease shall
      terminate as of the date specified in said notice. If the repair or restoration
      is commenced within such 30 days, this Lease shall continue in full force and
      effect. “Commence” shall mean either the unconditional authorization of the
      preparation of the required plans, or the beginning of the actual work on the
      Premises, whichever first occurs.

     

    9.7
      Termination; Advance Payments. Upon termination of this Lease pursuant to
      Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made
      concerning advance Base Rent and any other advance payments made by Lessee
      to
      Lessor. Lessor shall, in addition, return to Lessee so much of Lessee’s Security
      Deposit as has not been, or is not then required to be, used by
      Lessor.

     

    9.8
      Waive
      Statutes. Lessor and Lessee agree that the terms of this Lease shall govern
      the
      effect of any damage to or destruction of the Premises with respect to the
      termination of this Lease and hereby waive the provisions of any present or
      future statute to the extent inconsistent herewith.

     

    10.
      Real
      Property Taxes.

     

    10.1
      Definition. As used herein, the term “Real Property Taxes” shall include any
      form of assessment; real estate, general, special, ordinary or extraordinary,
      or
      rental levy or tax (other than inheritance, personal income or estate taxes);
      improvement bond; and/or license fee imposed upon or levied against any legal
      or
      equitable interest of Lessor in the Project, Lessor’s right to other income
      therefrom, and/or Lessor’s business of leasing, by any authority having the
      direct or indirect power to tax and where the funds are generated with reference
      to the Project address and where the proceeds so generated are to be applied
      by
      the city, county or other local taxing authority of a jurisdiction within which
      the Project is located. The term “Real Property Taxes” shall also include any
      tax, fee, levy, assessment or charge, or any increase therein: (i) imposed
      by
      reason of events occurring during the term of this Lease, including but not
      limited to, a change in the ownership of the Project, (ii) a change in the
      improvements thereon, and/or (iii) levied or assessed on machinery or equipment
      provided by Lessor to Lessee pursuant to this Lease. In calculating Real
      Property Taxes for any calendar year, the Real Property Taxes for any real
      estate tax year shall be included in the calculation of Real Property Taxes
      for
      such calendar year based upon the number of days which such calendar year and
      tax year have in common.

     

    10.2
      Payment of Taxes. Except as otherwise provided in Paragraph 10.3, Lessor shall
      pay the Real Property Taxes applicable to the Project, and said payments shall
      be included in the calculation of Common Area Operating Expenses in accordance
      with the provisions of Paragraph 4.2.

     

    10.3
      Additional Improvements. Common Area Operating Expenses shall not include Real
      Property Taxes specified in the tax assessor’s records and work sheets as being
      caused by additional improvements placed upon the Project by other lessees
      or by
      Lessor for the exclusive enjoyment of such other lessees. Notwithstanding
      Paragraph 10.2 hereof, Lessee shall, however, pay to Lessor at the time Common
      Area Operating Expenses are payable under Paragraph 4.2, the entirety of any
      increase in Real Property Taxes if assessed solely by reason of Alterations,
      Trade Fixtures or Utility Installations placed upon the Premises by Lessee
      or at
      Lessee’s request or by reason of any alterations or improvements to the Premises
      made by Lessor subsequent to the execution of this Lease by the
      Parties.

     

    10.4
      Joint Assessment. If the Building is not separately assessed, Real Property
      Taxes allocated to the Building shall be an equitable proportion of the Real
      Property Taxes for all of the land and improvements included within the tax
      parcel assessed, such proportion to be determined by Lessor from the respective
      valuations assigned in the assessor’s work sheets or such other information as
      may be reasonably available. Lessor’s reasonable determination thereof, in good
      faith, shall be conclusive.

     

    
      	
              

            	 	
              
                

              

            
	
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    10.5
      Personal Property Taxes. Lessee shall pay prior to delinquency all taxes
assessed
      against and levied upon Lessee Owned Alterations
      and Utility Installations, Trade Fixtures,
      furnishings, equipment and all personal property of Lessee contained in the
      Premises. When
      possible, Lessee shall cause its Lessee Owned Alterations
      and Utility Installations, Trade Fixtures,
      furnishings. equipment and all other personal property
      to be assessed and billed separately from the real
      property of Lessor. If
      any of
      Lessee’s said property shall be assessed with Lessor’s
      real property,
      Lessee shall pay Lessor the taxes attributable to
      Lessee’s property within 10 days after receipt of a written statement
      setting forth the taxes applicable
      to Lessee’s property.

     

    11.
      Utilities
      and Services. Lessee shall pay for all water, gas, heat,
      light, power, telephone, trash disposal and other utilities and
      services supplied
      to the Premises, together with any taxes thereon. Notwithstanding
      the provisions of Paragraph 4.2, it
      at any
      time in Lessor’s sole judgment. Lessor determines that Lessee is using a
      disproportionate amount
      of
      water, electricity or other commonly metered utilities, or
      that
      Lessee is generating such
      a
      large volume of trash as to require an increase in
      the
      size
      of the trash receptacle and/or an increase in the
      number of times per month that it is emptied,
      then Lessor may increase Lessee’s Base Rent by an amount
      equal to such increased costs. There
      shall be no abatement of Rent and Lessor shall not be liable in any respect
      whatsoever for the inadequacy, stoppage, interruption or discontinuance of
      any
      utility or service
      due to riot, strike, labor dispute,
      breakdown, accident, repair or other cause beyond Lessor’s
      reasonable control or in cooperation with governmental request
      or directions.

     

    12.
      Assignment
      and Subletting.

     

    12.1
      Lessor’s
      Consent Required.

     

    (a)
      Lessee
      shall not voluntarily or by operation of law assign, transfer, mortgage or
      encumber (collectively, “assign
      or assignment”)
      or sublet all or any part of Lessee’s interest in
      this
      Lease or in the Premises without Lessor’s prior written consent.

     

    (b)
      Unless
      Lessee is a corporation and its stock is publicly traded on
      a
      national stock exchange, a change in the control of Lessee
      shall constitute an assignment requiring consent. The
      transfer, on a cumulative basis, of 25% or more of the voting
      control of Lessee shall constitute
      a change in control for this purpose.

     

    (c)
      The
      involvement of Lessee or its assets in any transaction, or
      series
      of transactions (by way of merger, sale, acquisition, financing,
      transfer, leveraged buy-out or otherwise), whether
      or not a formal assignment or hypothecation of
      this
      Lease or Lessee’s assets occurs, which
      results or will result in a reduction of the Net Worth of
      Lessee
      by an amount greater than 25% of such Net Worth as
      it was
      represented at the time
      of
      the execution of this Lease or at the time of the most recent
      assignment to which Lessor has consented, or as it exists immediately
      prior to said transaction
      or transactions constituting such reduction, whichever
      was or is greater, shall be considered an assignment of this Lease to which
      Lessor may
      withhold its consent. “Net Worth of Lessee” shall mean the
      net
      worth of Lessee (excluding any guarantors) established under generally accepted
      accounting principles.

     

    (d)
      An
      assignment or subletting without consent shall, at
      Lessor’s option, be a Default curable after notice per Paragraph 13.1(c),
      or a noncurable Breach without the necessity
      of any notice and grace period. If
      Lessor
      elects to treat such unapproved assignment or
      subletting
      as a noncurable Breach, Lessor may either: (i)
      terminate this Lease, or (ii) upon 30 days written notice,
      increase the monthly Base Rent to 110%
      of
      the Base Rent then in effect. Further,
      in the event of such Breach and rental adjustment, (i)
      the
      purchase price of any option to purchase the Premises
      held by Lessee shall be subject to similar
      adjustment to 110% of the price previously in effect, and (ii) all fixed and
      non-fixed rental
      adjustments scheduled during the remainder of the Lease term shall
      be
      increased to 110% of the scheduled adjusted rent.

     

    (e)
      Lessee’s
      remedy for any breach of Paragraph 12.1 by
      Lessor
      shall be limited to compensatory damages and/or injunctive relief.

     

    (f)
      Lessor
      may reasonably withhold consent to a proposed assignment or subletting if Lessee
      is in Default at
      the
      time consent
      is requested.

     

    (g)
      Notwithstanding
      the foregoing, allowing a diminimus portion of
      the
      Premises, i.e. 20 square feet or less, to be used by a
      third
      party vendor in connection with the installation of a vending
      machine or payphone shall not constitute a subletting.

     

    12.2
      Terms
      and
      Conditions Applicable to Assignment and Subletting.

     

    (a)
      Regardless
      of Lessor’s consent, no assignment or subletting shall:
      (i) be effective without the express written assumption by
      such
      assignee or sublessee of the obligations of Lessee under this Lease, (ii)
      release Lessee of any obligations hereunder,
      or (iii) alter the primary liability
      of Lessee for the payment of Rent or for the performance of
      any
      other obligations to be performed by Lessee.

     

    (b)
      Lessor
      may accept Rent or performance of Lessee’s obligations from
      any
      person other than Lessee pending approval or disapproval
      of an assignment. Neither
      a
      delay in the approval or disapproval of such assignment nor the acceptance
      of
      Rent or performance shall constitute
      a waiver or estoppel of Lessor’s right to exercise its
      remedies for Lessee’s Default or Breach.

     

    (c)
      Lessor’s
      consent to any assignment or subletting shall not constitute consent to any
      subsequent assignment or subletting.

     

    (d)
      In
      the
      event of any Default or Breach by Lessee. Lessor may proceed directly against
      Lessee, any Guarantors or anyone else
      responsible for the performance of Lessee’s obligations under
      this Lease, including any assignee or sublessee,
      without
      first exhausting Lessor’s remedies against any other person or entity
      responsible therefore to
      Lessor, or any security held by Lessor.

     

    (e)
      Each
      request for consent to an assignment or subletting shall
      be
      in writing, accompanied by information relevant
      to Lessor’s
      determination as to the financial and operational responsibility
      and appropriateness of the proposed assignee
      or sublessee, including but not limited
      to the intended use and/or required modification of
      the
      Premises, if any, together with a fee of $500 as consideration for Lessors
      considering and
      processing said request. Lessee agrees to provide Lessor with such other or
      additional information
      and/or documentation as may be reasonably requested. (See also Paragraph
      36)

     

    (f)
      Any
      assignee of, or sublessee under, this Lease shall,
      by
      reason of accepting such assignment, entering into such sublease,
      or entering into possession of the Premises or any portion thereof, be deemed
      to
      have assumed and agreed
      to
      conform and comply with each
      and
      every terms, covenant, condition and obligation herein
      to
      be observed or performed by Lessee during the term of said assignment or
      sublease, other
      than such obligations as are contrary to or inconsistent with
      provisions of an assignment or sublease to which Lessor has specifically
      consented to
      in
      writing.

     

    (g)
      Lessor’s
      consent to any assignment or subletting shall not
      transfer to the assignee or sublessee any Option granted to
      the
      original Lessee by this Lease unless such transfer is specifically consented
      to
      by Lessor in writing. (See Paragraph 39.2)

     

    12.3
      Additional
      Terms and Conditions Applicable to Subletting. The
      following terms and conditions shall apply to any subletting by
      Lessee
      of
      all or any part of the Premises and shall be deemed included in all subleases
      under this Lease whether or not expressly incorporated
      therein:

     

    (a)
      Lessee
      hereby assigns and transfers to Lessor all of Lessee’s interest
      in all Rent payable on any sublease, and Lessor may
      collect such Rent and apply same toward Lessee’s
      obligations under this Lease; provided,
      however, that until a Breach shall occur
      in
      the performance
      of Lessee’s obligations, Lessee may collect said Rent. In the event that the
      amount collected by Lessor exceeds Lessee’s
      then outstanding
      obligations any such excess shall be refunded to
      Lessee
      Lessor shall not, by reason of the foregoing or any assignment
      of such sublease, nor
      by
      reason of the collection of Rent, be deemed liable
      to
      the sublessee for any failure of Lessee to
      perform and comply with any of Lessee’s obligations
      to such sublessee. Lessee
      hereby irrevocably authorizes and directs any
      such
      sublessee, upon receipt of a written notice from
      Lessor stating
      that a Breach exists in the performance of Lessee’s obligations
      under this Lease, to pay to Lessor all Rent due and
      to
      become due under the sublease
      Sublessee
      shall rely
      upon
      any
      such
      notice from Lessor and shall pay all Rents to Lessor without any obligation
      or
      right to inquire as
      to
whether
      such Breach exists, notwithstanding any claim from Lessee to the
      contrary.

     

    
      	
              

            	 	
              
                

              

            
	
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    (b)
      In
      the
      event of a Breach by Lessee, Lessor may, at
      its
      option, require sublessee to attorn to Lessor, in
      which
      event Lessor
      shall undertake the obligations of the sublessor under
      such sublease from the time of the exercise of said
      option to the expiration of such sublease:
      provided, however, Lessor shall not be liable for
      any
      prepaid rents or security deposit paid by such sublessee
      to such sublessor or for any prior
      Defaults or Breaches of such sublessor.

     

    (c)
      Any
      matter requiring the consent of the sublessor under a sublease shall
      also require the consent of Lessor.

     

    (d)
      No
      sublessee shall further assign or sublet all or any part of the Premises without
      Lessor’s prior written consent.

     

    (e)
      Lessor
      shall deliver a copy of any notice of Default or Breach by
      Lessee
      to the sublessee, who shall have the right to cure the
      Default of Lessee within the grace period, if any, specified
      in such notice. The sublessee shall have a right of
      reimbursement and offset from and against
      Lessee for any such Defaults cured by the sublessee

     

    13.
      Default;
      Breach; Remedies.

     

    13.1
      Default;
      Breach. A
      “Default” is defined as a failure by the Lessee to
      comply
      with or perform any of the terms, covenants, conditions
      or Rules and Regulations under this Lease. A
      “Breach” is defined as the occurrence of one or more of
      the
      following Defaults, and the failure
      of Lessee to cure such Default within any applicable grace period:

     

    (a)
      The
      abandonment of the Premises, or the vacating of the Premises without
      providing a commercially reasonable level of security,
      or where the coverage of the property insurance described in
      Paragraph 8.3 is jeopardized as a result thereof, or without providing
      reasonable assurances to minimize potential vandalism.

     

    (b)
      The
      failure of Lessee to make any payment of Rent or any Security Deposit
      required to be made by Lessee hereunder, whether
      to Lessor or to a third party, when due, to provide reasonable
      evidence of insurance or surety bond, or to fulfill any
      obligation under this Lease which endangers or threatens life or property,
      where
      such failure continues
      for a period of 3 business days following written notice to Lessee.

     

    (c)
      The
      commission of waste, act or acts constituting public or private
      nuisance, and/or an illegal activity on the Premises by
      Lessee,
      where such actions continue for a period of 3 business days following written
      notice to Lessee.

     

    (d)
      The
      failure by Lessee to provide (i) reasonable written evidence of compliance
      with
      Applicable Requirements, (ii)
      the
service
      contracts, (iii) the rescission of an unauthorized
      assignment or subletting, (iv)
      an
      Estoppel Certificate, (v) a requested subordination, (vi) evidence
      concerning any guaranty and/or Guarantor, (vii) any document requested under
      Paragraph 41, (viii)
      material data safety sheets (MSDS), or (ix)
      any
      other documentation or information which Lessor
      may reasonably require of Lessee under the terms
      of
      this Lease, where any such failure continues
      for a period of 10 days following written notice to Lessee.

     

    (e)
      A
      Default
      by Lessee as to the terms, covenants, conditions or provisions of this Lease,
      or
      of the rules adopted
      under Paragraph 2.9 hereof, other than those described in subparagraphs
13.1(a),
      (b),
      (c)
      or
(d),
      above,
      where such Default continues for a period of 30 days after
      written notice; provided, however, that if the nature
      of
      Lessee’s Default is such that more than 30 days are reasonably
      required for its cure, then it shall
      not
      be deemed to be a Breach if Lessee commences such
      cure
      within said 30 day period and thereafter diligently prosecutes
      such cure to completion.

     

    (f)
      The
      occurrence of any of the following events: (i)
      the
      making of any general arrangement or assignment for the benefit of creditors;
      (ii)
      becoming
      a “debtor” as defined in 11 U.S.C. §
101
      or
      any successor statute thereto (unless, in the
      case
      of a petition filed against Lessee,
      the same is dismissed within 60 days); (iii) the
      appointment of a trustee or receiver to take possession of substantially all
      of
      Lessee’s assets located
      at the Premises or of Lessee’s interest in
      this
      Lease, where possession is not restored to
      Lessee
      within 30 days, or (iv) the attachment, execution
      or other judicial seizure of substantially all
      of
      Lessee’s assets located at the Premises or of Lessee’s
      interest in this Lease, where such seizure
      is not discharged within 30 days; provided, however, in
      the
      event that any provision of this subparagraph is contrary to any applicable
      law,
      such provision
      shall be of no force or effect, and not affect the validity of
      the
      remaining provisions.

     

    (g)
      The
      discovery that any financial statement of Lessee or of any Guarantor
      given to Lessor was materially false.

     

    (h)
      If
      the
      performance of Lessee’s obligations under
      this Lease is guaranteed: (i)
      the
      death of a Guarantor, (ii) the termination
      of a Guarantor’s liability with respect to this
      Lease other than in accordance with the terms of such guaranty,
      (iii) a Guarantor’s becoming insolvent
      or the subject of a bankruptcy filing, (iv) a Guarantor’s refusal to honor the
      guaranty, or (v) a Guarantor’s breach of its guaranty obligation on an
      anticipatory basis, and Lessee’s failure, within 60 days following written
      notice of any such event, to provide written alternative
      assurance or security, which,
      when coupled with the then existing resources of
      Lessee, equals or exceeds the combined financial resources of
      Lessee
      and the Guarantors that
      existed at the time of execution of this Lease.

     

    13.2
      Remedies.
      If Lessee fails to perform any of its affirmative duties
      or
      obligations, within 10 days after written notice (or in case of an emergency,
      without notice), Lessor may, at its option, perform
      such duty or obligation on Lessee’s behalf, including
      but not limited to the obtaining of reasonably
      required bonds, insurance policies, or governmental licenses, permits or
      approvals. Lessee shall pay to Lessor an amount
      equal to 115% of the
      costs
      and expenses incurred by Lessor in such performance upon
      receipt of an invoice therefor. In
      the
      event of a Breach, Lessor may, with or without
      further notice or demand, and without limiting Lessor
      in
      the exercise of any right or remedy which Lessor may have
      by
      reason of such Breach:

     

    (a)
      Terminate
      Lessee’s right to possession of the Premises by
      any
      lawful means, in which case this Lease shall terminate and
      Lessee shall immediately surrender possession to Lessor. In such event Lessor
      shall be entitled to recover from Lessee: (i)
      the
      unpaid Rent which had
      been
      earned at the time of termination; (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 the Lessee proves could have
      been
      reasonably avoided; (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
      the Lessee proves could be reasonably avoided, and (iv) any other amount
      necessary to compensate Lessor for all the
      detriment proximately caused
      by
      the Lessee’s failure to perform its obligations under
      this Lease or which in the ordinary course of things would be
      likely
      to result therefrom, including
      but not limited to the cost of recovering possession
      of the Premises, expenses of reletting, including
      necessary renovation and alteration of the
      Premises, reasonable attorneys’ fees, and that portion of
      any
      leasing commission paid by Lessor in connection with
      this
      Lease applicable to the unexpired
      term of this Lease. The worth at the time of award of
      the
      amount referred to in provision (iii) of the immediately preceding
      sentence shall be computed
      by discounting such amount at the discount rate of the Federal
      Reserve Bank of the District within which the Premises are
      located at the time of
      award
      plus one percent. Efforts
      by Lessor to mitigate damages caused by Lessee’s Breach
      of
      this Lease shall not waive Lessor’s right to recover damages under Paragraph 12.
      If termination of this Lease is obtained through the provisional remedy of
      unlawful detainer, Lessor shall have the right to
      recover in such proceeding any unpaid Rent and damages
      as are recoverable therein, or Lessor may reserve the
      right
      to recover all or any part thereof
      in a separate suit. If
      a
      notice and grace period required under Paragraph 13.1
      was
      not previously given, a notice to pay rent or quit, or to perform or quit given
      to Lessee under the unlawful detainer statute
      shall also constitute the notice required by
      Paragraph 13.1. In
      such
      case, the applicable grace period required by Paragraph 13.1 and the unlawful
      detainer statute shall run
      concurrently, and the failure of Lessee to cure the
      Default
      within the greater of the two such grace periods shall
      constitute both an unlawful detainer and a Breach
      of
      this Lease entitling Lessor to the remedies
      provided for in this Lease and/or by said statute.

     

    (b)
      Continue
      the Lease and Lessee’s right to possession and
      recover the Rent as it becomes due, in which event Lessee may sublet or assign,
      subject only to reasonable limitations. Acts of maintenance, efforts to relet,
      and/or the appointment of a receiver to protect the Lessor’s interests shall not
      constitute a termination of the Lessee’s right to possession.

     

    
      	
              

            	 	
              
                

              

            
	
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    (c)
      Pursue any other remedy now or hereafter available under the laws or judicial
      decisions of the state wherein the Premises are located. The expiration or
      termination of this Lease and/or the termination of Lessee’s right to possession
      shall not relieve Lessee from liability under any indemnity provisions of this
      Lease as to matters occurring or accruing during the term hereof or by reason
      of
      Lessee’s occupancy of the Premises.

     

    13.3
      Inducement Recapture. Any agreement for free or abated rent or other charges,
      or
      for the giving or paying by Lessor to or for Lessee of any cash or other bonus,
      inducement or consideration for Lessee’s entering into this Lease, all of which
      concessions are hereinafter referred to as “Inducement Provisions”, shall be
      deemed conditioned upon Lessee’s full and faithful performance of all of the
      terms, covenants and conditions of this Lease. Upon Breach of this Lease by
      Lessee, 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 Lessor under
      such an Inducement Provision shall be immediately due and payable by Lessee
      to
      Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The
      acceptance by Lessor of rent or the cure of the Breach which initiated the
      operation of this paragraph shall not be deemed a waiver by Lessor of the
      provisions of this paragraph unless specifically so stated in writing by Lessor
      at the time of such acceptance.

     

    13.4
      Late
      Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will
      cause Lessor to incur costs not contemplated by this Lease, the exact amount
      of
      which will be extremely difficult to ascertain. Such costs include, but are
      not
      limited to processing and accounting charges, and late charges which may be
      imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be
      received by Lessor within 5 days after such amount shall be due, then, without
      any requirement for notice to Lessee, Lessee shall immediately pay to Lessor
      a
      one-time late charge equal to 10% of each such overdue amount or $100, whichever
      is greater. The parties hereby agree that such late charge represents a fair
      and
      reasonable estimate of the costs Lessor will incur by reason of such late
      payment. Acceptance of such late charge by Lessor shall in no event constitute
      a
      waiver of Lessee’s Default or Breach with respect to such overdue amount, nor
      prevent the exercise of any of the other rights and remedies granted hereunder.
      In the event that a late charge is payable hereunder, whether or not collected,
      for 3 consecutive installments of Base Rent, then notwithstanding any provision
      of this Lease to the contrary, Base Rent shall, at Lessor’s option, become due
      and payable quarterly in advance.

     

    13.5
      Interest. Any monetary payment due Lessor hereunder, other than late charges,
      not received by Lessor, when due as to scheduled payments (such as Base Rent)
      or
      within 30 days following the date on which it was due for non-scheduled payment,
      shall bear interest from the date when due, as to scheduled payments, or the
      31st day after it was due as to non-scheduled payments. The interest
      (“Interest”) charged shall be computed at the rate of 10% per annum but shall
      not exceed the maximum rate allowed by law. Interest is payable in addition
      to
      the potential late charge provided for in Paragraph 13.4.

     

    13.6
      Breach by Lessor.

     

    (a)
      Notice of Breach. Lessor shall not be deemed in breach of this Lease unless
      Lessor fails within a reasonable time to perform an obligation required to
      be
      performed by Lessor. For purposes of this Paragraph, a reasonable time shall
      in
      no event be less than 30 days after receipt by Lessor, and any Lender whose
      name
      and address shall have been furnished Lessee in writing for such purpose, of
      written notice specifying wherein such obligation of Lessor has not been
      performed; provided, however, that if the nature of Lessor’s obligation is such
      that more than 30 days are reasonably required for its performance, then Lessor
      shall not be in breach if performance is commenced within such 30 day period
      and
      thereafter diligently pursued to completion

     

    (b)
      Performance by Lessee on Behalf of Lessor. In the event that neither Lessor
      nor
      Lender cures said breach within 30 days after receipt of said notice, or if
      having commenced said cure they do not diligently pursue it to completion,
      then
      Lessee may elect to cure said breach at Lessee’s expense and offset from Rent
      the actual and reasonable cost to perform such cure, provided however, that
      such
      offset shall not exceed an amount equal to the greater of one month’s Base Rent
      or the Security Deposit, reserving Lessee’s right to reimbursement from Lessor
      for any such expense in excess of such offset, Lessee shall document the cost
      of
      said cure and supply said documentation to Lessor.

     

    14.
      Condemnation. If the Premises or any portion thereof are taken under the power
      of eminent domain or sold under the threat of the exercise of said power
      (collectively “Condemnation”), this
      Lease
      shall terminate as to the part taken as of the date the condemning authority
      takes title or possession, whichever first occurs. If more than 10% of the
      floor
      area of the Unit, or more than 25% of Lessee’s Reserved Parking Spaces, is taken
      by Condemnation, Lessee may, at Lessee’s option, to be exercised in writing
      within 10 days after Lessor shall have given Lessee written notice of such
      taking (or in the absence of such notice, within 10 days after the condemning
      authority shall have taken possession) terminate this Lease as of the date
      the
      condemning authority takes such possession. If Lessee does not terminate this
      Lease in accordance with the foregoing, this Lease shall remain in full force
      and effect as to the portion of the Premises remaining, except that the Base
      Rent shall be reduced in proportion to the reduction in utility of the Premises
      caused by such Condemnation. Condemnation awards and/or payments shall be the
      property of Lessor, whether such award shall be made as compensation for
      diminution in value of the leasehold, the value of the part taken, or for
      severance damages; provided, however, that Lessee shall be entitled to any
      compensation for Lessee’s relocation expenses, loss of business goodwill and/or
      Trade Fixtures, without regard to whether or not this Lease is terminated
      pursuant to the provisions of this Paragraph. All Alterations and Utility
      Installations made to the Premises by Lessee, for purposes of Condemnation
      only,
      shall be considered the property of the Lessee and Lessee shall be entitled
      to
      any and all compensation which is payable therefore. In the event that this
      Lease is not terminated by reason of the Condemnation, Lessor shall repair
      any
      damage to the Premises caused by such Condemnation.

     

    15.
      Brokerage Fees.

     

    15.1
      Additional Commission. In addition to the payments owed pursuant to Paragraph
      1.10 above, and unless Lessor and the Brokers otherwise agree in writing, Lessor
      agrees that (a) if Lessee exercises any Option, (b) it Lessee acquires from
      Lessor any rights to the Premises or other premises owned by Lessor and located
      within the Project, (c) if Lessee remains in possession of the Premises, with
      the consent of Lessor, after the expiration of this Lease, or (d) if Base Rent
      is increased, whether by agreement or operation of an escalation clause herein,
      then, Lessor shall pay Brokers a fee in accordance with the schedule of the
      Brokers in effect at the time of the execution of this Lease.

     

    15.2
      Assumption of Obligations. Any buyer or transferee of Lessor’s interest in this
      Lease shall be deemed to have assumed Lessor’s obligation hereunder. Brokers
      shall be third party beneficiaries of the provisions of Paragraphs 1.10, 15,
      22
      and 31. If Lessor fails to pay to Brokers any amounts due as and for brokerage
      fees pertaining to this Lease when due, then such amounts shall accrue Interest.
      In addition, if Lessor fails to pay any amounts to Lessee’s Broker when due,
      Lessee’s Broker may send written notice to Lessor and Lessee of such failure and
      if Lessor fails to pay such amounts within 10 days after said notice, Lessee
      shall pay said monies to its Broker and offset such amounts against Rent. In
      addition, Lessee’s Broker shall be deemed to be a third party beneficiary of any
      commission agreement entered into by and/or between Lessor and Lessor’s Broker
      for the limited purpose of collecting any brokerage fee owed.

     

    15.3
      Representations and Indemnities of Broker Relationships. Lessee and Lessor
      each
      represent and warrant to the other that it has had no dealings with any person,
      firm, broker or finder (other than the Brokers, if any) in connection with
      this
      Lease, and that no one other than said named Brokers is entitled to any
      commission or finder’s fee in connection herewith. Lessee and Lessor do each
      hereby agree to indemnify, protect, defend and hold the other harmless from
      and
      against liability for compensation or charges which may be claimed by any such
      unnamed broker, finder or other similar party by reason of any dealings or
      actions of the indemnifying Party, including any costs, expenses, attorneys’
fees reasonably incurred with respect thereto.

     

    
      	
              

            	 	
              
                

              

            
	
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    16.
      Estoppel Certificates.

     

    (a)
      Each
      Party (as “Responding Party”) shall within 10 days after written notice from the
      other Party (the “Requesting Party”) execute, acknowledge and deliver to the
      Requesting Party a statement in writing in form similar to the then most current
      “Estoppel Certificate” form published by the AIR Commercial Real Estate
      Association, plus such additional information, confirmation and/or statements
      as
      may be reasonably requested by the Requesting Party.

     

    (b)
      If
      the Responding Party shall fail to execute or deliver the Estoppel Certificate
      within such 10 day period, the Requesting Party may execute an Estoppel
      Certificate stating that (i) the Lease is in full force and effect without
      modification except as may be represented by the Requesting Party, (ii) there
      are no uncured defaults in the Requesting Party’s performance, and (iii) if
      Lessor is the Requesting Party, not more than one month’s rent has been paid in
      advance. Prospective purchasers and encumbrancers may rely upon the Requesting
      Party’s Estoppel Certificate, and the Responding Party shall be estopped from
      denying the truth of the facts contained in said Certificate.

     

    (c)
      If
      Lessor desires to finance, refinance, or sell the Premises, or any part thereof,
      Lessee and all Guarantors shall deliver to any potential lender or purchaser
      designated by Lessor such financial statements as may be reasonably required
      by
      such lender or purchaser, including but not limited to Lessee’s financial
      statements for the past 3 years. All such financial statements shall be received
      by Lessor and such lender or purchaser in confidence and shall be used only
      for
      the purposes herein set forth.

     

    17.
      Definition of Lessor. The term “Lessor” as used herein shall mean the owner or
      owners at the time in question of the fee title to the Premises, or, if this
      is
      a sublease, of the Lessee’s interest in the prior lease. In the event of a
      transfer of Lessor’s title or interest in the Premises or this Lease, Lessor
      shall deliver to the transferee or assignee (in cash or by credit) any unused
      Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such
      transfer or assignment and delivery of the Security Deposit, as aforesaid,
      the
      prior Lessor shall be relieved of all liability with respect to the obligations
      and/or covenants under this Lease thereafter to be performed by the Lessor.
      Subject to the foregoing, the obligations and/or covenants in this Lease to
      be
      performed by the Lessor shall be binding only upon the Lessor as hereinabove
      defined.

     

    18.
      Severability. The invalidity of any provision of this Lease, as determined
      by a
      court of competent jurisdiction, shall in no way affect the validity of any
      other provision hereof.

     

    19.
      Days.
      Unless otherwise specifically indicated to the contrary, the word “days” as used
      in this Lease shall mean and refer to calendar days.

     

    20.
      Limitation on Liability. The obligations of Lessor under this Lease shall not
      constitute personal obligations of Lessor, or its partners, members, directors,
      officers or shareholders, and Lessee shall look to the Premises, and to no
      other
      assets of Lessor, for the satisfaction of any liability of Lessor with respect
      to this Lease, and shall not seek recourse against Lessor’s partners, members,
      directors, officers or shareholders, or any of their personal assets for such
      satisfaction.

     

    21.
      Time
      of Essence. Time is of the essence with respect to the performance of all
      obligations to be performed or observed by the Parties under this
      Lease.

     

    22.
      No
      Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements
      between the Parties with respect to any matter mentioned herein, and no other
      prior or contemporaneous agreement or understanding shall be effective. Lessor
      and Lessee each represents and warrants to the Brokers that it has made, and
      is
      relying solely upon, its own investigation as to the nature, quality, character
      and financial responsibility of the other Party to this Lease and as to the
      use,
      nature, quality and character of the Premises. Brokers have no responsibility
      with respect thereto or with respect to any default or breach hereof by either
      Party. The liability (including court costs and attorneys’ fees), of any Broker
      with respect to negotiation, execution, delivery or performance by either Lessor
      or Lessee under this Lease or any amendment or modification hereto shall be
      limited to an amount up to the fee received by such Broker pursuant to this
      Lease; provided, however, that the foregoing limitation on each Broker’s
      liability shall not be applicable to any gross negligence or willful misconduct
      of such Broker.

     

    23.
      Notices

     

    23.1
      Notice Requirements. All notices required or permitted by this Lease or
      applicable law shall be in writing and may be delivered in person (by hand
      or by
      courier) or may be sent by regular, certified or registered mail or U. S. Postal
      Service Express Mail, with postage prepaid, or by facsimile transmission, and
      shall be deemed sufficiently given if served in a manner specified in this
      Paragraph 23. The addresses noted adjacent to a Party’s signature on this Lease
      shall be that Party’s address for delivery or mailing of notices. Either Party
      may by written notice to the other specify a different address for notice,
      except that upon Lessee’s taking possession of the Premises. the Premises shall
      constitute Lessee’s address for notice. A copy of all notices to Lessor shall be
      concurrently transmitted to such party or parties at such addresses as Lessor
      may from time to time hereafter designate in writing.

     

    23.2
      Date
      of Notice. Any notice sent by registered or certified mail, return receipt
      requested, shall be deemed given on the date of delivery shown on the receipt
      card, or if no delivery date is shown, the postmark thereon. If sent by regular
      mail the notice shall be deemed given 72 hours after the same is addressed
      as
      required herein and mailed with postage prepaid. Notices delivered by United
      States Express Mail or overnight courier that guarantee next day delivery shall
      be deemed given 24 hours after delivery of the same to the Postal Service or
      courier. Notices transmitted by facsimile transmission or similar means shall
      be
      deemed delivered upon telephone confirmation of receipt (confirmation report
      from fax machine is sufficient), provided a copy is also delivered via delivery
      or mail. If notice is received on a Saturday, Sunday or legal holiday, it shall
      he deemed received on the next business day.

     

    24.
      Waivers. No waiver by Lessor of the Default or Breach of any term, covenant
      or
      condition hereof by Lessee, shall be deemed a waiver of any other term, covenant
      or condition hereof, or of any subsequent Default or Breach by Lessee of the
      same or of any other term, covenant or condition hereof. Lessor’s consent to, or
      approval of, any act shall not be deemed to render unnecessary the obtaining
      of
      Lessor’s consent to, or approval of, any subsequent or similar act by Lessee, or
      be construed as the basis of an estoppel to enforce the provision or provisions
      of this Lease requiring such consent. The acceptance of Rent by Lessor shall
      not
      be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be
      accepted by Lessor on account of moneys or damages due Lessor, notwithstanding
      any qualifying statements or conditions made by Lessee in connection therewith,
      which such statements and/or conditions shall be of no force or effect
      whatsoever unless specifically agreed to in writing by Lessor at or before
      the
      time of deposit of such payment.

     

    25.
      Disclosures Regarding The Nature of a Real Estate Agency
      Relationship.

     

    (a)
      When
      entering into a discussion with a real estate agent regarding a real estate
      transaction, a Lessor or Lessee should from the outset understand what type
      of
      agency relationship or representation it has with the agent or agents in the
      transaction. Lessor and Lessee acknowledge being advised by the Brokers in
      this
      transaction, as follows:

     

    (i)
      Lessor’s Agent. A Lessor’s agent under a listing agreement with the
      Lessor acts as the agent for the Lessor only. A Lessor’s agent or subagent has
      the following affirmative obligations: To
      the
      Lessor:
      A
      fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings
      with
      the Lessor. To
      the
      Lessee and the Lessor:
      (a)
      Diligent exercise of reasonable skills and care in performance of the agent’s
      duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to
      disclose all facts known to the agent materially affecting the value or
      desirability of the property that are not known to, or within the diligent
      attention and observation of, the Parties. An agent is not obligated to reveal
      to either Party any confidential information obtained from the other Party
      which
      does not involve the affirmative duties set forth above.

     

    (ii)
      Lessee’s Agent. An agent can agree to act as agent for the Lessee only.
      In these situations, the agent is not the Lessor’s
      agent, even if by agreement the agent may receive compensation for services
      rendered, either in full or in part from the Lessor. An agent acting only for
      a
      Lessee has the following affirmative obligations. To the
      Lessee:
      A
      fiduciary duly of utmost care, integrity, honesty, and loyalty in dealings
      with
      the Lessee. To
      the
      Lessee and the Lessor:
      (a)
      Diligent exercise of reasonable skills and care in performance of the agent’s
      duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to
      disclose all facts known to the agent materially affecting the value or
      desirability of the property that are not known to, or within the diligent
      attention and observation of, the Parties. An agent is not obligated to reveal
      to either Party any confidential information obtained from the other Party
      which
      does not involve the affirmative duties set forth above.

    

    
      	
              

            	 	
              
                

              

            
	
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    (iii)
      Agent
      Representing Both Lessor and Lessee.
      A real
      estate agent, either acting directly or through one or more associate licenses,
      can legally be the agent of both the Lessor and the Lessee in a transaction,
      but
      only with the knowledge and consent of both the Lessor and the Lessee. In a
      dual
      agency situation, the agent has the following affirmative obligations to both
      the Lessor and the Lessee: (a) A fiduciary duty of utmost care, integrity,
      honesty and loyalty in the dealings with either Lessor or the Lessee. (b) Other
      duties to the Lessor and the Lessee as stated above in subparagraphs (i) or
      (ii). In representing both Lessor and Lessee, the agent may not without the
      express permission of the respective Party, disclose to the other Party that
      the
      Lessor will accept rent in an amount less than that indicated in the listing
      or
      that the Lessee is willing to pay a higher rent than that offered. The above
      duties of the agent in a real estate transaction do not relieve a Lessor or
      Lessee from the responsibility to protect their own interests. Lessor and Lessee
      should carefully read all agreements to assure that they adequately express
      their understanding of the transaction. A real estate agent is a person
      qualified to advise about real estate. If legal or tax advice is desired,
      consult a competent professional.

     

    (b)
      Brokers have no responsibility with respect to any Default or Breach hereof
      by
      either Party. The Parties agree that no lawsuit or other legal proceeding
      involving any breach of duty, error or omission relating to this Lease may
      be
      brought against Broker more than one year after the Start Date and that the
      liability (including court costs and attorneys’ fees), of any Broker with
      respect to any such lawsuit and/or legal proceeding shall not exceed the fee
      received by such Broker pursuant to this Lease, provided, however, that the
      foregoing limitation on each Broker’s liability shall not be applicable to any
      gross negligence or willful misconduct of such Broker.

     

    (c)
      Buyer
      and Seller agree to identify to Brokers as “Confidential” any communication or
      information given Brokers that is considered by such Party to be
      confidential.

     

    26.
      No
      Right To Holdover. Lessee has no right to retain possession of the Premises
      or
      any part thereof beyond the expiration or termination of this Lease. In the
      event that Lessee holds over, then the Base Rent shall be increased to 150%
      of
      the Base Rent applicable immediately preceding the expiration or termination.
      Nothing contained herein shall be construed as consent by Lessor to any holding
      over by Lessee.

     

    27.
      Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive
      but shall, wherever possible, be cumulative with all other remedies at law
      or in
      equity.

     

    28.
      Covenants and Conditions; Construction of Agreement. All provisions of this
      Lease to be observed or performed by Lessee are both covenants and conditions.
      In construing this Lease, all headings and titles are for the convenience of
      the
      Parties only and shall not be considered a part of this Lease. Whenever required
      by the context, the singular shall include the plural and vice versa. This
      Lease
      shall not be construed as if prepared by one of the Parties, but rather
      according to its fair meaning as a whole,
      as
      if both Parties had prepared it.

     

    29.
      Binding Effect; Choice of Law. This Lease shall be binding upon the parties,
      their personal representatives, successors and assigns and be governed by the
      laws of the State in which the Premises are located. Any litigation between
      the
      Parties hereto concerning this Lease shall be initiated in the county in which
      the Premises are located.

     

    30.
      Subordination; Attornment; Non-Disturbance.

     

    30.1
      Subordination. This Lease and any Option granted hereby shall be subject and
      subordinate to any ground lease, mortgage, deed of trust, or other hypothecation
      or security device (collectively, “Security Device”), now or hereafter placed
      upon the Premises, to any and all advances made on the security thereof, and
      to
      all renewals, modifications, and extensions thereof. Lessee agrees that the
      holders of any such Security Devices (in this Lease together referred to as
      “Lender”) shall have no liability or obligation to perform any of the
      obligations of Lessor under this Lease. Any Lender may elect to have this Lease
      and/or any Option granted hereby superior to the lien of its Security Device
      by
      giving written notice thereof to Lessee, whereupon this Lease and such Options
      shall be deemed prior to such Security Device, notwithstanding the relative
      dates of the documentation or recordation thereof.

     

    30.2
      Attornment. In the event that Lessor transfers title to the Premises, or the
      Premises are acquired by another upon the foreclosure or termination of a
      Security Device to which this Lease is subordinated (i) Lessee shall, subject
      to
      the non-disturbance provisions of Paragraph 30.3, attorn to such new owner,
      and
      upon request, enter into a new lease, containing all of the terms and provisions
      of this Lease, with such new owner for the remainder of the term hereof, or,
      at
      the election of the new owner, this Lease will automatically become a new lease
      between Lessee and such new owner, and (ii) Lessor shall thereafter be relieved
      of any further obligations hereunder and such new owner shall assume all of
      Lessor’s obligations, except that such new owner shall not: (a) be liable for
      any act or omission of any prior lessor or with respect to events occurring
      prior to acquisition of ownership, (b) be subject to any offsets or defenses
      which Lessee might have against any prior lessor, (c) be bound by prepayment
      of
      more than one month’s rent, or (d) be liable for the return of any security
      deposit paid to any prior lessor.

     

    30.3
      Non-Disturbance. With respect to Security Devices entered into by Lessor after
      the execution of this Lease, Lessee’s subordination of this Lease shall be
      subject to receiving a commercially reasonable non-disturbance agreement (a
      “Non-Disturbance Agreement”) from the Lender which Non-Disturbance Agreement
      provides that Lessee’s possession of the Premises, and this Lease, including any
      options to extend the terns hereof, will not be disturbed so long as Lessee
      is
      not in Breach hereof and attorns to the record owner of the Premises. Further,
      within 60 days after the execution of this Lease, Lessor shall use its
      commercially reasonable efforts to obtain a Non-Disturbance Agreement from
      the
      holder of any pre-existing Security Device which is secured by the Premises.
      In
      the event that Lessor is unable to provide the Non-Disturbance Agreement within
      said 60 days, then Lessee may, at Lessee’s option, directly contact Lender and
      attempt to negotiate for the execution and delivery of a Non-Disturbance
      Agreement.

     

    30.4
      Self-Executing. The agreements contained in this Paragraph 30 shall be effective
      without the execution of any further documents; provided, however, that, upon
      written request from Lessor or a Lender in connection with a sale, financing
      or
      refinancing of the Premises, Lessee and Lessor shall execute such further
      writings as may be reasonably required to separately document any subordination,
      attornment and/or Non-Disturbance Agreement provided for herein.

     

    31.
      Attorneys’ Fees. If any Party or Broker brings an action or proceeding involving
      the Premises whether founded in tort, contract or equity, or to declare rights
      hereunder, the Prevailing Party (as hereafter defined) in any such proceeding,
      action, or appeal thereon, shall be entitled to reasonable attorneys’ fees. Such
      fees may be awarded in the same suit or recovered in a separate suit, whether
      or
      not such action or proceeding is pursued to decision or judgment. The term,
      “Prevailing Party” shall include, without limitation, a Party or Broker who
      substantially obtains or defeats the relief sought, as the case may be, whether
      by compromise, settlement, judgment, or the abandonment by the other Party
      or
      Broker of its claim or defense. The attorneys’ fees award shall not be computed
      in accordance with any court fee schedule, but shall be such as to fully
      reimburse all attorneys’ fees reasonably incurred. In addition, Lessor shall be
      entitled to attorneys’ fees, costs and expenses incurred in the preparation and
      service of notices of Default and consultations in connection therewith, whether
      or not a legal action is subsequently commenced in connection with such Default
      or resulting Breach ($200 is a reasonable minimum per occurrence for such
      services and consultation).

     

    32.
      Lessor’s Access; Showing Premises; Repairs. Lessor and Lessor’s agents shall
      have the right to enter the Premises at any time, in the
      case
      of an emergency, and otherwise at reasonable times after reasonable prior notice
      for the purpose of showing the same to prospective purchasers, lenders, or
      tenants, and making such alterations, repairs, improvements or additions to
      the
      Premises as Lessor may deem necessary or desirable and the erecting, using
      and
      maintaining of utilities, services, pipes and conduits through the Premises
      and/or other premises as long as there is no material adverse effect on Lessee’s
      use of the Premises. All such activities shall be without abatement of rent
      or
      liability to Lessee. 

    

    
      	
              

            	 	
              
                

              

            
	
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    33.
      Auctions. Lessee shall not conduct, nor permit to be conducted, any auction
      upon
      the Premises without Lessor’s prior written consent. Lessor shall not be
      obligated to exercise any standard of reasonableness in determining whether
      to
      permit an auction.

     

    34.
      Signs. Lessor may place on the Premises ordinary “For Sale” signs at any time
      and ordinary “For Lease” signs during the last 6 months of the term hereof.
      Except for ordinary “For Sublease” signs which may be placed only on the
      Premises, Lessee shall not place any sign upon the Project without Lessor’s
      prior written consent. All signs must comply with all Applicable
      Requirements.

     

    35.
      Termination; Merger. Unless specifically stated otherwise in writing by Lessor,
      the voluntary or other surrender of this Lease by Lessee, the mutual termination
      or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee,
      shall automatically terminate any sublease or lesser estate in the Premises;
      provided, however, that Lessor may elect to continue any one or all existing
      subtenancies. Lessor’s failure within 10 days following any such event to elect
      to the contrary by written notice to the holder of any such lesser interest,
      shall constitute Lessor’s election to have such event constitute the termination
      of such interest.

     

    36.
      Consents. Except as otherwise provided herein, wherever in this Lease the
      consent of a Party is required to an act by or for the other Party, such consent
      shall not be unreasonably withheld or delayed Lessor’s actual reasonable costs
      and expenses (including but not limited to architects’, attorneys’, engineers’
and other consultants’ fees) incurred in the consideration of, or response to, a
      request by Lessee for any Lessor consent, including but not limited to consents
      to an assignment, a subletting or the presence or use of a Hazardous Substance,
      shall be paid by Lessee upon receipt of an invoice and supporting documentation
      therefor. Lessor’s consent to any act, assignment or subletting shall not
      constitute an acknowledgment that no Default or Breach by Lessee of this Lease
      exists, nor shall such consent be deemed a waiver of any then existing Default
      or Breach, except as may be otherwise specifically stated in writing by Lessor
      at the time of such consent. The failure to specify herein any particular
      condition to Lessor’s consent shall not preclude the imposition by Lessor at the
      time of consent of such further or other conditions as are then reasonable
      with
      reference to the particular matter for which consent is being given. In the
      event that either Party disagrees with any determination made by the other
      hereunder and reasonably requests the reasons for such determination, the
      determining party shall furnish its reasons in writing and in reasonable detail
      within 10 business days following such request.

     

    37.
      Guarantor.

     

    37.1
      Execution. The Guarantors, if any, shall each execute a guaranty in the form
      most recently published by the AIR Commercial Real Estate
      Association.

     

    37.2
      Default. It shall constitute a Default of the Lessee if any Guarantor fails
      or
      refuses, upon request to provide: (a) evidence of the execution of the guaranty,
      including the authority of the party signing on Guarantor’s behalf to obligate
      Guarantor, and in the case of a corporate Guarantor, a certified copy of a
      resolution of its board of directors authorizing the making of such guaranty,
      (b) current financial statements, (c) an Estoppel Certificate, or (d) written
      confirmation that the guaranty is still in effect.

     

    38.
      Quiet
      Possession. Subject to payment by Lessee of the Rent and performance of all
      of
      the covenants, conditions and provisions on Lessee’s part to be observed and
      performed under this Lease, Lessee shall have quiet possession and quiet
      enjoyment of the Premises during the term hereof.

     

    39.
      Options. If Lessee is granted an option, as defined below, then the following
      provisions shall apply.

     

    39.1
      Definition. “Option” shall mean: (a) the right to extend the term of or renew
      this Lease or to extend or renew any lease that Lessee has on other property
      of
      Lessor; (b) the right of first refusal or first offer to lease either the
      Premises or other property of Lessor; (c) the right to purchase or the right
      of
      first refusal to purchase the Premises or other property of Lessor.

     

    39.2
      Options Personal To Original Lessee. Any Option granted to Lessee in this Lease
      is personal to the original Lessee, and cannot be assigned or exercised by
      anyone other than said original Lessee and only while the original Lessee is
      in
      full possession of the Premises and, if requested by Lessor, with Lessee
      certifying that Lessee has no intention of thereafter assigning or
      subletting.

     

    39.3
      Multiple Options. In the event that Lessee has any multiple Options to extend
      or
      renew this Lease, a later Option cannot be exercised unless the prior Options
      have been validly exercised.

     

    39.4
      Effect of Default on Options.

     

    (a)
      Lessee shall have no right to exercise an Option: (i) during the period
      commencing with the giving of any notice of Default and continuing until said
      Default is cured, (ii) during the period of time any Rent is unpaid (without
      regard to whether notice thereof is given Lessee), (iii) during the time Lessee
      is in Breach of this Lease, or (iv) in the event that Lessee has been given
      3 or
      more notices of separate Default, whether or not the Defaults are cured, during
      the 12 month period immediately preceding the exercise of the
      Option.

     

    (b)
      The
      period of time within which an Option may be exercised shall not be extended
      or
      enlarged by reason of Lessee’s inability to exercise an Option because of the
      provisions of Paragraph 39.4(a).

     

    (c)
      An
      Option shall terminate and be of no further force or effect, notwithstanding
      Lessee’s due and timely exercise of the Option, if, after such exercise and
      prior to the commencement of the extended term or completion of the purchase,
      (i) Lessee fails to pay Rent for a period of 30 days after such Rent becomes
      due
      (without any necessity of Lessor to give notice thereof), or (ii) if Lessee
      commits a Breach of this Lease.

     

    40.
      Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor
      hereunder does not include the cost of guard service or other security measures,
      and that Lessor shall have no obligation whatsoever to provide same. Lessee
      assumes all responsibility for the protection of the Premises, Lessee, its
      agents and invitees and their property from the acts of third
      parties.

     

    41.
      Reservations. Lessor reserves the right: (i) to grant, without the consent
      or
      joinder of Lessee, such easements, rights and dedications that Lessor deems
      necessary, (ii) to cause the recordation of parcel maps and restrictions, and
      (iii) to create and/or install new utility raceways, so long as such easements,
      rights, dedications, maps, restrictions, and utility raceways do not
      unreasonably interfere with the use of the Premises by Lessee. Lessee agrees
      to
      sign any documents reasonably requested by Lessor to effectuate such
      rights.

     

    42.
      Performance Under Protest. If at any time a dispute shall arise as to any amount
      or sum of money to be paid by one Party to the other under the provisions
      hereof, the Party against whom the obligation to pay the money is asserted
      shall
      have the right to make payment “under protest” and such payment shall not be
      regarded as a voluntary payment and there shall survive the right on the part
      of
      said Party to institute suit for recovery of such sum. If it shall be adjudged
      that there was no legal obligation on the part of said Party to pay such sum
      or
      any part thereof, said Party shall be entitled to recover such sum or so much
      thereof as it was not legally required to pay. A Party who does not initiate
      suit for the recovery of sums paid “under protest” within 6 months shall be
      deemed to have waived its right to protest such payment. 

     

    43.
      Authority; Multiple Parties; Execution.

     

    (a)
      If
      either Party hereto is a corporation, trust, limited liability company,
      partnership, or similar entity, each individual executing this Lease on behalf
      of such entity represents and warrants that he or she is duly authorized to
      execute and deliver this Lease on its behalf. Each Party shall, within 30 days
      after request, deliver to the other Party satisfactory evidence of such
      authority.

     

    (b)
      If
      this Lease is executed by more than one person or entity as “Lessee”, each such
      person or entity shall be jointly
      and severally liable hereunder. It is agreed that any one of the named Lessees
      shall be empowered to execute any amendment to this Lease, or other document
      ancillary thereto and bind all of the named Lessees, and Lessor may rely on
      the
      same as if all of the named Lessees had executed such
      document.

     

    
      	
              

            	 	
              
                

              

            
	
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    (c)
      This
      Lease may be executed by the Parties in counterparts, each of which shall be
      deemed an original and all of which together shall constitute one and the same
      instrument.

     

    44.
      Conflict. Any conflict between the printed provisions of this Lease and the
      typewritten or handwritten provisions shall be controlled by the typewritten
      or
      handwritten provisions.

     

    45
      Offer.
      Preparation of this Lease by either party or their agent and submission of
      same
      to the other Party shall not be deemed an offer to lease to the other Party.
      This Lease is not intended to be binding until executed and delivered by all
      Parties hereto.

     

    46.
      Amendments. This Lease may be modified only in writing, signed by the Parties
      in
      interest at the time of the modification. As long as they do not materially
      change Lessee’s obligations hereunder, Lessee agrees to make such reasonable
      non-monetary modifications to this Lease as may be reasonably required by a
      Lender in connection with the obtaining of normal financing or refinancing
      of
      the Premises.

     

    47.
      Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL
      BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF
      THIS AGREEMENT.

     

    48.
      Mediation and Arbitration of Disputes. An Addendum requiring the Mediation
      and/or the Arbitration of all disputes between the Parties and/or Brokers
      arising out of this Lease o
      is o
      is
      not
      attached to this Lease.

     

    49.
      Americans with Disabilities Act. Since compliance with the Americans with
      Disabilities Act (ADA) is dependent upon Lessee’s specific use of the Premises,
      Lessor makes no warranty or representation as to whether or not the Premises
      comply with ADA or any similar legislation. In the event that Lessee’s use of
      the Premises requires modifications or additions to the Premises in order to
      be
      in ADA compliance, Lessee agrees to make any such necessary modifications and/or
      additions at Lessee’s expense.

     

    LESSOR
      AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND
      PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR
      INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE
      TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE
      AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO
      THE
      PREMISES.

     

    ATTENTION:
      NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE
      ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR
      TAX
      CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES
      ARE URGED TO.

     

    1
      SEEK
      ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS
      LEASE.

     

    2
      RETAIN
      APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES.
      SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE
      OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY,
      THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, COMPLIANCE WITH THE AMERICANS
      WITH DISABILITIES ACT AND THE SUITABILITY OF THE PREMISES FOR LESSEE’S INTENDED
      USE.

     

    WARNING:
      IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS
      OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN
      WHICH THE PREMISES ARE LOCATED.

     

    The
      parties hereto have executed this Lease at the place and on the dates specified
      above their respective signatures.

     

    
      	
              Executed
                at:

            	  
	 	
              Executed
                at:

            	  

	
              On:

            	  
	 	
              On:

            	  

	 	 	 	 	 
	
              By
                LESSOR: 

            	 	 	
              By
                LESSEE:

            	 
	
              Berkshire
                Holdings, LLC

            	 	
              Waat
                Corp.,

            
	 	 	 	
              a
                California corporation 

            
	 	 	 	 
	
              By:

            	
              /s/
                LENA BARSEGHIAN

            	 	
              By:

            	
              /s/
                TAL McAbian

            
	
              Name
                Printed: 

            	
              LENA
                BARSEGHIAN

            	 	
              Name
                Printed: 

            	
              TAL
                McAbian

            
	
              Title:

            	
              OFFICE
                MANAGER

            	 	
              Title:

            	
              Partner

            
	 	 	 	 	 
	
              By:

            	  
	 	
              By:

            	 
	
              Name
                Printed:

            	   
	 	
              Name
                Printed:

            	
            	  

	
              Title:

            	   
	 	
              Title:

            	  

	
              Address:

            	   
	 	
              Address:
                

            	  

	  
	 	  

	  
	 	  

	
              Telephone:

            	
              (   
                )

            	 	
              Telephone:

            	
              (   
                )

            
	
              Facsimile:

            	
              (  
                )

            	 	
              Facsimile:

            	
              (   
                )

            
	
              Federal
                ID No. 

            	 
	 	Federal
              ID No	
              
              

            
	 	 	 	 	 
	
              BROKER:

            	 	
              BROKER:

            
	  
	 	  

	  
	 	  

	
              Attn:

            	   
	 	
              Attn:

            	  

	
              Title:

            	   
	 	
              Title:

            	  

	
              Address:

            	   
	 	
              Address:

            	  

	  
	 	 
	
              Telephone:

            	
              (  
                 )

            	 	
              Telephone:

            	
              (   
                 )

            
	
              Facsimile:

            	
              (   
                )

            	 	
              Facsimile:

            	
              (    
                )

            
	
              Email:

            	  
	 	
              Email:

            	  

	
              FederalI
                D No.

            	 
	 	Federal
              ID No.	  

    

     

    These
      forms are often modified to meet changing requirements of law and needs of
      the
      industry. Always write or call to make sure you are utilizing the most current
      form: AIR COMMERCIAL REAL ESTATE ASSOCIATION, 700 South Flower Street, Suite
      600, Los Angeles, CA 90017. (213) 687-8777.

     

    ©Copyright
      1999 By AIR Commercial Real Estate Association.

     

    All
      rights reserved.

     

    
      	
              

            	 	
              
                

              

            
	
              INITIALS

            	 	
              INITIALS

            

    

    

     

    
      
        
        

      

      
        PAGE
          16 OF
          17

        
          

        

      

      
        
        

      

    

    No
      part
      of these works may be reproduced in any form without permission in
      writing.

     

    
      	
              

            	 	
              
                

              

            
	
              INITIALS

            	 	
              INITIALS

            

    

     

    
      
        
        

      

      
        PAGE
          17 OF
          17

        
          

        

      

      
        
        

      

    

    
      	
              

            
	
              ADDENDUM

            

    

     

    Date:
      July 15, 2005

     

    
      	
              By
                and Between

            	(Lessor)	
              Berkshire
                Holdings, LLC

            
	 	
              (Lessee)

            	
              Waat
                Corp.

            

    

     

    
      	
              Address
                of Premises:

            	
              14242
                Ventura Boulevard, Suite 300

            
	 	
              Sherman
                Oaks, California 91423

            

    

     

    Addendum
      A

     

    This
      Addendum is to the Standard Industrial Commercial Multi-Tenant Lease - Net
      dated
      July 1, 2005, between Berkshire Holdings, LLC and Waat Corp. of 18226 Ventura
      Boulevard, Suite # 102 Tarzana, CA 91356 USA. As a material consideration for
      Lessee’s agreement to lease the Premises from Lessor, Lessor hereby agrees to
      construct the following improvements pursuant to Lessee’s
      specifications.

     

    
      	
              ·

            	
              Cubicles

            

    

    
      	
              ·

            	
              Woodwork
                

            

    

    
      	
              ·

            	
              Tempered
                glass/dividers/doors

            

    

    
      	
              ·

            	
              Shelves
                and desks

            

    

    
      	
              ·

            	
              Tenant
                improvement line/DSL line

            

    

    
      	
              ·

            	
              Air
                conditioning (additional)

            

    

    
      	
              ·

            	
              Furniture

            

    

    
      	
              ·

            	
              Carpeting

            

    

    
      	
              ·

            	
              Lighting

            

    

    
      	
              ·

            	
              Cabinets

            

    

    
      	
              ·

            	
              White
                boards

            

    

    
      	
              ·

            	
              Conference
                Room

            

    

    
      	
              ·

            	
              Internal
                Windows, Frames and Blinds

            

    

    
      	
              ·

            	
              Wooden
                floors

            

    

    
      	
              ·

            	
              Special
                paints

            

    

     

    Lessor
      and Lessee hereby agree that the total value and cost of these Improvements
      is
      $150,000.00, which shall be reimbursed to Lessor by Lessee upon commencement
      of
      the Lease.

    

    
      	
              

            	 	
              
                

              

            
	
              INITIALS

            	 	
              INITIALS

            

    

     

     

    
      
        
        

      

      
        PAGE
          1 OF
          1

        
          

        

      

      
        
        

      

    

    
      	
              

            
	
              ADDENDUM

            

    

     

    Date:
      July 15, 2005

     

    
      	
              By
                and Between 

            	(Lessor)	
              Berkshire
                Holdings, LLC

            
	 	
              (Lessee)

            	
              Waat
                Corp.

            

    

     

    
      	
              Address
                of Premises:

            	
              14242
                Ventura Boulevard, Suite 300

            
	 	
              Sherman
                Oaks, California 91423

            

    

     

    Addendum
      A

     

    This
      Addendum is to the Standard Industrial Commercial Multi-Tenant Lease - Net
      dated
      July 1, 2005, between Berkshire Holdings, LLC and Waat Corp. of 18226 Ventura
      Boulevard, Suite # 102 Tarzana, CA 91356 USA. As a material consideration for
      Lessee’s agreement to lease the Premises from Lessor, Lessor hereby agrees to
      construct the following improvements pursuant to Lessee’s
      specifications.

     

    
      	
              ·

            	
              Cubicles

            

    

    
      	
              ·

            	
              Woodwork
                

            

    

    
      	
              ·

            	
              Tempered
                glass/dividers/doors

            

    

    
      	
              ·

            	
              Shelves
                and desks

            

    

    
      	
              ·

            	
              Tenant
                improvement line/DSL line

            

    

    
      	
              ·

            	
              Air
                conditioning (additional)

            

    

    
      	
              ·

            	
              Furniture

            

    

    
      	
              ·

            	
              Carpeting

            

    

    
      	
              ·

            	
              Lighting

            

    

    
      	
              ·

            	
              Cabinets

            

    

    
      	
              ·

            	
              White
                boards

            

    

    
      	
              ·

            	
              Conference
                Room

            

    

    
      	
              ·

            	
              Internal
                Windows, Frames and Blinds

            

    

    
      	
              ·

            	
              Wooden
                floors

            

    

    
      	
              ·

            	
              Special
                paints

            

    

     

    Lessor
      and Lessee hereby agree that the total value and cost of these Improvements
      is
      $150,000.00, which shall be reimbursed to Lessor by Lessee upon commencement
      of
      the Lease.

     

     

    
      	
              

            	 	
              
                

              

            
	
              INITIALS

            	 	
              INITIALS

            

    

     

    
      
        
        

      

      
        PAGE 1
          OF 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]