Document:

First Amendment to the Amended and Restated Credit Agreement

 Exhibit 10.51 
 EXECUTION VERSION 
 FIRST AMENDMENT TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
 THIS FIRST AMENDMENT TO AMENDED AND
RESTATED CREDIT AGREEMENT (this “First Amendment”) is made and entered into as of April 17, 2008, by and among Monotype Imaging Inc., a Delaware corporation (“Administrative Borrower”), the lenders listed on the
signatory pages hereof (the “Lenders”), and Wells Fargo Foothill, Inc., a California corporation, in its capacity as administrative agent (“Agent”). 
 WITNESSETH: 
 WHEREAS, Monotype Imaging Holdings Inc., a Delaware corporation (“Parent”), Administrative Borrower, Imaging Holdings Corp., a Delaware Corporation (“Imaging Holdings”), International Typeface Corporation,
a New York corporation (“Typeface” and, together with Imaging Holdings and the Administrative Borrower, the “Borrowers”), the Lenders and Agent are parties to that certain Amended and Restated Credit Agreement,
dated as of July 30, 2007 (as amended, modified, supplemented or amended and restated from time to time, the “Credit Agreement”); and 
 WHEREAS, the Borrowers, Parent, Agent and the Required Lenders wish to amend the Credit Agreement as herein provided, subject to the terms and conditions set forth herein; 
 NOW, THEREFORE, in consideration of the agreements and provisions herein contained, the parties hereto do hereby agree as follows: 
 Section 1. Definitions. Any capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the
Credit Agreement. 
 Section 2. Amendment to Schedule 1.1 of the Credit Agreement. The definition of “Change of Control” in
Schedule 1.1 is hereby amended by deleting the term “10%” in clause (b) thereof and replacing in lieu thereof, the term “30%”. 
 Section 3. Representations and Warranties. In order to induce Agent and the Required Lenders to enter into this First Amendment, Administrative Borrower (on behalf of the Loan Parties) hereby represents and warrants
that: 
 3.01 No Default. At and as of the date of this First Amendment, and both prior to and after
giving effect to this First Amendment, no Default or Event of Default exists. 
 3.02 Representations and
Warranties True and Correct. At and as of the date of this First Amendment and at and as of the Effective Date and after giving effect to this First Amendment, each of the representations and warranties contained in the Credit Agreement

 
and the other Loan Documents is true and correct in all material respects (except to the extent that such representations and warranties relate solely to an
earlier date). 
 3.03 Corporate Power, Etc. Administrative Borrower (a) has all requisite corporate
power and authority to execute and deliver this First Amendment and to consummate the transactions contemplated hereby (on behalf of the Loan Parties) and (b) has taken all action, corporate or otherwise, necessary to authorize the execution
and delivery of this First Amendment (on behalf of the Loan Parties). Administrative Borrower is entering into this First Amendment (on behalf of the Loan Parties) in accordance with Section 14.1 of the Credit Agreement. 
 3.04 No Conflict. The execution, delivery and performance by Administrative Borrower (on behalf of the Loan Parties)
of this First Amendment will not (a) violate any provision of federal, state, or local law or regulation applicable to any Borrower, the Governing Documents of any Borrower, or any order, judgment, or decree of any court or other Governmental
Authority binding on any Borrower, (b) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any Material Contract of Parent or any Borrower, (c) result in or require the creation or
imposition of any Lien of any nature whatsoever upon any properties or assets of Parent or any Borrower, other than Permitted Liens, or (d) require any approval of Parent’s or any Borrower’s shareholders or any approval or consent of
any Person under any Material Contract of Parent or any Borrower, other than consents and approvals that have been obtained and that are still in force and effect. 
 3.05 Binding Effect. This First Amendment, when executed and delivered by Administrative Borrower (on behalf of the
Loan Parties) will be the legally valid and binding obligations of Parent and the Borrowers, enforceable against Parent and the Borrowers in accordance with their respective terms, except as enforcement may be limited by equitable principles or by
bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally 
 Section 4.
Conditions. This First Amendment shall be effective as of April 17, 2008 (the “Effective Date”) upon the fulfillment by Administrative Borrower, in a manner satisfactory to the Agent and the Lenders, of all of the
following conditions precedent set forth in this Section 4: 
 4.01 Execution of the
Amendment. Each of the required parties hereto shall have executed an original counterpart of this First Amendment and shall have delivered (including by way of facsimile transmission or other electronic transmission) the same to Agent.

 4.02 Representations and Warranties. As of the Effective Date, the representations and warranties set
forth in Section 3 hereof shall be true and correct. 
 4.03 Compliance with Terms.
Administrative Borrower (on behalf of the Loan Parties) shall have complied in all respects with the terms hereof and of any other agreement, document, instrument or other writing to be delivered by Administrative Borrower in connection herewith.

  

 2 

 4.04 Delivery of Other Documents. Agent shall have received all such
instruments, documents and agreements as the Agent may reasonably request, in form and substance reasonably satisfactory to the Agent. 
 Section 5.
Miscellaneous. 
 5.01 Continuing Effect. Except as specifically provided herein, the Credit
Agreement and the other Loan Documents shall remain in full force and effect in accordance with their respective terms and are hereby ratified and confirmed in all respects. It is understood and agreed by the parties hereto that this First Amendment
constitutes a Loan Document. 
 5.02 No Waiver; Reservation of Rights. This First Amendment is limited as
specified and the execution, delivery and effectiveness of this First Amendment shall not operate as a modification, acceptance or waiver of any provision of the Credit Agreement or any other Loan Document, except as specifically set forth herein.
Notwithstanding anything contained in this First Amendment to the contrary, Agent and the Required Lenders expressly reserve the right to exercise any and all of their rights and remedies under the Credit Agreement, any other Loan Document and
applicable law in respect of any Default or Event of Default. 
 5.03 Governing Law. THE VALIDITY OF THIS
FIRST AMENDMENT, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF, AND THE RIGHTS OF THE PARTIES HERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK. 
 5.04 Severability. The provisions of this First Amendment are
severable, and if any clause or provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such jurisdiction and
shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision in this First Amendment in any jurisdiction. 
 5.05 Counterparts. This First Amendment may be executed in any number of counterparts and by different parties on
separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same instrument. Delivery of an executed counterpart of this First
Amendment by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this First Amendment. Any party delivering an executed counterpart of this First Amendment by
telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this First Amendment but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and
binding effect of this First Amendment. 
 5.06 Headings. Headings and numbers have been set forth herein
for convenience only. Unless the contrary is compelled by the context, everything contained in each Section applies equally to this entire First Amendment. 
  

 3 

 5.07 Binding Effect. This First Amendment shall be binding upon and
inure to the benefit of the Loan Parties, the Lenders and Agent and their respective successors and assigns; provided, that the rights and obligations of the Loan Parties under this Amendment shall not be assigned or delegated without the
prior written consent of Agent. 
 5.08 Expenses. Loan Parties agree to pay Agent upon demand for all
reasonable expenses, including reasonable fees of attorneys and paralegals for Agent (who may be employees of Agent), incurred by Agent in connection with the preparation, negotiation and execution of this Amendment and any document required to be
furnished herewith. 
 5.09 Integration. This Amendment, together with the other Loan Documents, reflects
the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof. 
 [Signature pages follow] 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective
officers thereunto duly authorized, as of the date first above written. 
  

					
	MONOTYPE IMAGING INC., as Administrative
	Borrower, on behalf of the Loan Parties
		
	By:	 	/s/ Jacqueline Arthur

					
	Name:	 		 	Jacqueline Arthur
	Title:	 		 	Chief Financial Officer, SVP

  

					
	WELLS FARGO FOOTHILL, INC., as Agent
	and a Lender
		
	By:	 	/s/ David Sanchez

					
	Name:	 		 	David Sanchez
	Title:	 		 	Vice President

 [SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT] 

  

			
	BANK OF AMERICA, N.A.
		
	By:	 	/s/ John Desmond

			
	Name:	 	John Desmond
	Title:	 	Managing Director

 [SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT] 

  

			
	 CANYON CAPITAL CLO 2006-1 LTD.
 AND
 CANYON CAPITAL CLO 2007-1 LTD.

		
	By:	 	Canyon Capital Advisors LLC,
		 	a Delaware limited liability company,
		 	its Collateral Manager
		
	By:	 	/s/ Michael Leyland

			
	Name:	 	Michael Leyland
	Title:	 	Authorized Signatory

  

			
	CANPARTNERS INVESTMENTS IV, L.L.C.,
in trust

			
		
	By:	 	/s/ Joshua S. Friedman

			
	Name:	 	Joshua S. Friedman
	Title:	 	Managing Partner
		
	By:	 	Canpartners Investments IV, LLC, a California limited liability company

 [SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT] 

			
	FORTRESS CREDIT INVESTMENTS I LTD.
		
	By:	 	/s/ Constantine M. Dakolias

			
	Name:	 	Constantine M. Dakolias
	Title:	 	Director

			
	
	FORTRESS CREDIT INVESTMENTS II LTD.
		
	By:	 	/s/ Constantine M. Dakolias

			
	Name:	 	Constantine M. Dakolias
	Title:	 	Director

			
	
	FORTRESS CREDIT FUNDING I LP
		
	By:	 	FORTRESS CREDIT FUNDING I GP LLC,
		 	its General Partner
		
	By:	 	/s/ Constantine M. Dakolias

			
	Name:	 	Constantine M. Dakolias
	Title:	 	 President

			
	
	FORTRESS CREDIT FUNDING II LP
		
	By:	 	FORTRESS CREDIT FUNDING II GP LLC,
		 	its General Partner
		
	By:	 	/s/ Constantine M. Dakolias

			
	Name:	 	Constantine M. Dakolias
	Title:	 	 President

 [SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT] 

  

			
	HBK MASTER FUND L.P.
		
	By:	 	HBK Services LLC, Investment Advisor
		
	By:	 	/s/ David C. Haley

			
	Name:	 	David C. Haley
	Title:	 	Authorized Signatory

 [SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]exhibit_4-1.htm

    
      

    

    EXHIBIT 4.1

     

    
      
        
        

         

        
          	
                  STANDARD
      INDUSTRIAL/COMMERCIAL

                  MULTI-TENANT
      LEASE - GROSS

                  AMERICAN
      INDUSTRIAL REAL ESTATE ASSOCIATION

                   

                  1.     Basic Provisions (Basic
      Provisions").

                  1.1    Parties: This Lease ("Lease"),
      dated for reference purposes only                 
      February
      12,
      2008                                         ,
      is made by
      and

                  between  Hawkins
      Properties,LLC                                                                                                                                                                                               

                                                                                                                                                                                                            
      

                                                                                                                                                                                                                                                       
      (“Lessor”)

                  and AmerElite Solutions,
      Inc                                                                                                                                                                                                        
      

                                                                                                                                                                                                             
      

                                                                                                                               ("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                         
      3120/22 West Clarendon
      Avenue                               
       , located in the City
      of

                  Phoenix                                                                                                   ,
      County
      of Maricopa                          
                                                                    
       , State
      

                  of Arizona                                                      
                  ,
      with zip
      code       
        85017     
            , as outlined on
      Exhibit    
       N/A   
       attached hereto
      ("Premises") and
      

                  generally described
      as (describe briefly the nature of the Premises): Single-story multiple-tenant industrial
      building                                                              
      

                                                                                                                                                                                                            

                                                                                                                                                                                                            
      

                  In
      addition to Lessee's rights to use and occupy the Premises as hereinafter
      specified, Lessee shall have non-exclusive rights to the Common Areas (as
      defined in 

                  Paragraph
      2.7 below) as hereinafter specified, but shall not have any rights to the
      roof, exterior walls or utility raceways of the building containing the
      Premises 

                  ("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:                 
      Ten
      (10)              
      unreserved vehicle parking spaces ("Unreserved
      Parking Spaces");
      and         
      None
      (0)             
      

                  reserved
      vehicle parking spaces ("Reserved
      Parking Spaces"). (See also Paragraph 2.6.)

                  1.3            Term: Two
      (2)             
          years and One
      (1)          
                
       months ("Original Term")
      commencing March 1,
      2008            
                          
      

                  ("Commencement Date") and ending March 31,
      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: $1,700.00                                                                  
       per month ("Base
      Rent"), payable on the First
      (1st)
      day of each month 

                  commencing
      March
      1,
      2008                                                           
      . (See also Paragraph 4.)

                  o  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:              Twenty                                       percent
      ( 20. 0
      %) ("Lessee's Share").

                  1.7            Base
      Rent and Other Monies Paid Upon Execution:

                  (a)    Base
      Rent: $ 1, 700.00                  
                  
       for the period       03/01/08  thru
      03/31/10                                                              

                  (b)            Common
      Area Operating Expenses are limited
      to base Real Property Taxes as defined in Section 4. Rent
      sub paragraph 4.2(v):

                  $14,538.80                    
      for the period term of the
      lease                                     
      .

                  (c)            Security
      Deposit: $
      1,
      835.00                   ("Security Deposit"). (See also Paragraph
      5.)

                  (d)            Other:
      $ 44
      .20                          
       for City,
      county, and state rental occupancy
      tax                                                             
      

                  (e)           
       Total
      Due Upon Execution of this Lease: $ 1,744.20                                              
      .

                  1.8            Agreed
      Use: General office and
      warehouse                                                                                                                                            
        

                                                                                                                                                                                                             

                                                                                                                                                                                                                                                                           

                                                                                                                                                                                                                       ________.
      (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.)

                  (a)           
      Representation:
      The following real estate brokers (the "Brokers") and brokerage
      relationships exist in this transaction (check applicable 

                  boxes):

                  þ Hawkins Realty.
      Inc.                                              
      represents Lessor exclusively ("Lessor's
      Broker");

                  o                                                                                   
       represents Lessee exclusively ("Lessee's
      Broker"); or

                  o                                                                                    
      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 2,
      125.00                              
       or     5         %
      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
      Robert  L
      .
      Knapp                                                         
      

                  _____________________________________________________________________________________________ ("Guarantor").
      (See also Paragraph 37)

                  1.12        
      Addenda
      and Exhibits. Attached hereto is an Addendum or Addenda consisting
      of Paragraphs through                    
            and                         

                  Exhibits      N/A     
       through      N/A     
       , all of which constitute a part of this
      Lease.

                   

                  2.             Premises.

                  
                    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 sire is more or less.

                       
      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 Dale, 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, tire sprinkler, lighting, heating, ventilating and
      air conditioning systems ("HVAC"), loading doors, if any, and all other
      such elements in the Unit, other than those constructed by Lessee, shall
      be in goad operating condition on said date and that the structural
      elements of the roof, bearing walls and foundation of the Unit shall be
      free of material defects. It a noncompliance with such warranty exists as
      of the Start Date, or if one of such systems or elements should
      malfunction or fall within the appropriate warranty period, Lessor shall
      as Lessors sole obligation with respect to such matter, except as
      otherwise provided in this Lease, promptly after receipt of mitten notice
      from Lessee setting forth with specificity the nature and extent of such
      non-compliance. malfunction or failure, rectify sierra 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, reef, foundations.
      and/or bearing walls - see Paragraph
7).

                  

                

        

         

        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

        
          	
                  2.3       
      Compliance. Lessor warrants that 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 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 zoning is
      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 noncompliance, 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 nor 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 2.3(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 it 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
      regally utilize the Premises without commencing such Capital
      Expenditure.

                  (b)        If
      such Capital Expenditure is eat 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 dim and payable for the remainder of this
      Lease is not sufficient to fully reimburse Lessee on an offset bees,
      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 be
      fully responsible for the cost thereof, and Lessee shall not have any
      right to terminate this Lease.

                  2.4       
      Acknowledgements.
      Lessee acknowledges that: (a) it has teen 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 therefore 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 wardens with respect to said
      matters other than as net 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 salt 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 farce or effect ff 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
woke.

                  2.6       
      Vehicle
      Parking. Lessee shall be entitled to use the number of Unreserved
      Parking Spaces and Reserved Parking Spaces specified In Paragraph 1.2(b)
      an 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 Lesser.

                  (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 riot 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 II may have, to remove or
      tow nay 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 no-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 revolted 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
      properly and charge the cost to Lessee, which cast 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 finding and the Project and their Invitees. Lessee agrees to abide
      by and conform M all such Ruins and Regulations, and 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 ether 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 king
      as reasonable access to the Premises remains available;

                  (c)        To
      designate other land outside the boundaries of the Project to be a pad 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 Tern 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 tens 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, however, be in effect during such period.
      Any such early possession shall not affect the Expiration
      Date.

                  3.3       
      Delay
      11/ Possession. Lessor agrees to use its best commercially
      reasonable efforts to delver 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. Lessee shall not, however, be
      obligated to pay Rent or perform its other obligations until it receives
      possession of the Premises. If possession is not delivered within 60 days
      after the Commencement Date, Lessee may, at Its option, by notice In
      vetting 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 shaft terminate. Except as otherwise provided, if
      possession is not tendered to Lessee by the Start Dale and Lessee does not
      terminate this Lease, as aforesaid, any period of rent abatement that
      Lessee would otherwise have enjoyed shaft 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 lender 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.

                

        

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        
          	
                  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
16.) 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 at this Lease, as alt
costs incurred by Lessor relating to the ownership and operation or the Project,
including, but not limited to, the following:

        (i)      
The operation, repair and maintenance, in neat, clean, good order and condition,
but not the replacement (see subparagraph (e)), 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, and the
costs of any environmental inspections.

        (iv)      Reserves
set aside for maintenance and repair of Common Areas.

        (v)      
Any increase above the Base Real Property Taxes (as defined in Paragraph
10).

        (vi)      Any
"Insurance Cost Increase" (as defined in Paragraph 8).

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

        (viii)    The
cost of any Capital Expenditure 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 Expenditure over a 12 year period and Lessee shall
not be required to pay more than Lessee's Share of I/144th of the cost of such
Capital Expenditure in any given month.

        (ix)      
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 In 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 faculties 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 shall be payable by Lessee
within 10 days after a reasonably detailed statement of actual expenses is
presented to Lessee. At Lessor's option, however, an amount may be estimated by
Lessor from time to time of Lessee's Share of annual Common Area Operating
Expenses and the same shall be payable monthly or quarterly, as Lessor shall
designate, during each 12 month period of the Lease term, on the same day as the
Base Rent Is due hereunder. Lessor shall deliver to Lessee within 60 days alter
the expiration of each calendar year a reasonably detailed statement showing
Lessee's Share of the actual Common Area Operating Expenses incurred during the
preceding year If Lessee's payments under this Paragraph 4.2(d) during the
preceding year exceed Lessee's Share as indicated on such statement, Lessor
shall be credited the amount of such over-payment against Lessee's Share of
Common Area Operating Expenses nerd becoming due. If Lessee's payments under
this Paragraph 4.2(c) during the preceding year were Less than Lessee's Share as
indicated on such statement, Lessee shall pay to Lessor the amount of the
deficiency within 10 days after delivery by Lessor to Lessee of the
statement.

        (e)      
When a capital component such as the roof, foundations, exterior walls or a
Common Area capital improvement, such as the parking lot paving, elevators,
fences, etc. requires replacement, rather than repair or maintenance, Lessor
shall, at Lessor's expense, be responsible for such replacement. Such expenses
and/or costs are not Common Area Operating Expenses.

        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. Rent far 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 net 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 325.

         

        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 titles 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. It 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 sublease 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. It 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 stall
depose 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. Lessor shall not unreasonably withhold or delay its consent to
any written request for a modification of the Agreed Use, so long as the same
will not impair the structural integrity of the improvements on the Premises or
the mechanical or electrical systems therein, and/or is not significantly more
burdensome to the Premises. If Lessor elects to withhold consent, Lessor shall
within 7 days after such request give written notification of Some, which notice
shall include an explanation of Lessor's objections to the change in the Agreed
Use.

        6.2        
Hazardous
Substances.

        (a)      
Reportable
Uses Require Consent. The term "Hazardous Substance" as used in the 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 arty applicable statute or common taw 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 an 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
[net/elation 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 for (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, 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 Me presence of such Hazardous Substance.

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        (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,
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 indemnity, 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), Lessee's obligations shall include, but not be limited to, the effects
of any contamination or injury to person, properly 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 existed as a result of Hazardous Substances on the Premises prior to the
Start Date 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 cast of investigation, removal, remediation,
restoration and/or abatement, and shall survive the expiation or termination of
this Lease.

        (f)      
Investigations
and Remediation. Lessor she retain the responsibility and pay for any
investigations or remediation measures required by governmental entities having
jurisdiction molt respect to the existence of Hazardous Substances on the
Premises prior to the Start Date, unless such remediation measure is required as
a result of Lessee's use
(including "Alteration", as defined in paragraph 72(a) below) of the
Premises, in which event Lessee shall be responsible for such payment. Lessee
shall cooperate fully in arty 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 62(d) and
Paragraph 13), Lessor may, at Lessor's option, either will 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 (11) 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 alter 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 hilt 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, the 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 the Premises, 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 lassoes 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
evolved) 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.

        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 limes for the purpose of Inspecting
the condition al 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 contamination is bound 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.

         

        
          	
                  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, fractures, interior walls,
interior surfaces of exterior walls, ceilings, floors, windows, doors, plate
glass, and skylights but excluding any items which are the responsibility or
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
at 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, it 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 if Lessor so
elects, Lessee shall reimburse Lessor, upon demand, for the cost
thereat

        (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 reimburse Lessor for 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 lean 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 cast 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 he denominator of which is 144 (ie. 1/14th of the
cost per month). Lessee shall pay interest on the unamortized  balance
at a rate that is commercially reasonable in the judgment of Lessor's
accountants, Lessee may, however, 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, that 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
under 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 Lease be obligated to maintain, repair or replace windows, doors or pate
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 tenors of this
Lease.

        7.3         Utility
installations; Trade Fixtures; Alterations.

        (a)      
Definitions.
The term "Utility Installations refers to all floor and window coverings, air
lines, power panels, electrical distribution, security and ore protection
systems, communication systems, 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 MAN 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 7.1(a),

        (b)      
Consent.
Lessee shall nut make any Alterations or Utility Installations to the Premises
without Lassoes prior written consent. Lessee may, however, make non-structural
Utility Installations to the interior of the Premises (excluding the rent)
without such consent NA 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 Meeting walls, 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 penetrative and/or install anything on
the mot 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 seen 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 band 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.

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        (c)      
Indemnification.
Lessee shall pay, when due, all claims for labor or materials furnished or
alleged to have been furnished to or for Lessee at co for use on the Premises,
which claims are or may be secured by any mechanic's or material men'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 shag contest the validity of any such lien, claim or demand, then
Lessee Shall, at its sole expense defend and protect itself, Lessor and the
Premises 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 Lessor's attorneys fees and costs.

        7.4        Ownership;
Removal; Surrender; and Restoration.

        (a)      
Ownership.
Subject to Lessors' 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 rater 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 Dale
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 Dale 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 to-startle-hone furnishings, and
equipment as wet 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 on 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 properly of Lessee and shall be removed by Lessee. The failure
by Lessee to emery 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 Premium Increases.

        (a)      
As used herein, the term“Insurance
Cost Increase" is defined as any increase in the actual cost of the
Insurance applicable to the
Building and/or the Project and required to be carried by Lessor,
pursuant to Paragraphs 8.2(b), 8.3(a) and 8.3(b), ("Required Insurance"), over
and above the Base Premium, as hereinafter defined, calculated on en annual
basis, Insurance Cost Increase shall include, but
net be limited to, requirements of the holder of a mortgage or deed of
trust covering the Premises, Build rig and/or Project, increased valuation of
the Premises. Budding and/or Project, and/or a general premium rate increase.
The term Insurance Cost
Increase shall nit, however, include any premium Increases resulting from
the nature of the occupancy of any other tenant of the Building. If the
parties insert a dollar amount in Paragraph 1.9, such amount shall be
considered the "Base
Premium." The Base Premium shall be the annual premium applicable to the
12 month period immediately preceding the Start Date. If, however, the Project
was not insured for the entirety of such 12 month period, then the Base Premium
shall he the lowest annual premium reasonably obtainable for the Required
Insurance as of the Start Date, assuming the most nominal use possible of the
Building. In no event, however, shall Lessee be responsible for any portion of
the premium cost attributable to liability insurance coverage In excess of
$2,000,000 procured under Paragraph 8.2(b).

        (b)      
Lessee shall pay any Insurance Cost Increase to Lessor pursuant to Paragraph
4.2. 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 net less than $1,000,000 per occurrence with an annual aggregate of
not less than $2,000,000, an "Additional Insured-Managers or Lessors of Premises
Endorsement" and contain the "Amendment of the Pollution Exclusion Endorsement'
for damage caused by heat, smoke or fumes from a hostile Ore.
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. All insurance carried
by Lessee 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
lobe 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 hill 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 properly shall be Insured by Lessee under
Paragraph 8.4. If the coverage is available and commercially appropriate, such
poky or policies shall insure against all risks of direct physical toss 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 properly insurance coverage amount by a factor
of not less than the adjusted U.S. Department of Labor Consumer Price Index for
At 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 31,000 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 art
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 site be
adjusted annually to reflect the projected Rent otherwise payable by Lessee, for
the next 12 month period.

        (c)      
Adjacent
Premises. 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 Alteration, and Utility Installations
unless the tern 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 81,000 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
that provide Lessor with written evidence that such insurance is in
force.

        (b)      
Business
Interruption. Lessee shall obtain and maintain loss of inane and extra
expense insurance in amounts as wit 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 penis.

        (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 slate where the Premises are located,
and maintaining during the policy term a 'General Policy Holders Rating' Of at
least B+, V, as set forth in the most current Issue of
"Best's Insurance Guide", or such other rating as may he 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 30 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 tail to procure and maintain the insurance required to be
carried by ft. the other Party may, but shall not be required to, procure and
maintain the same.

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        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 lass 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, attorney' and consultants' fees, expenses and/or
liabilities arising out of, invoking, 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, 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.

         

        
          	
                  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 8 months Base Rent. Lessor shall notify Lessee in writing
within 30 days from the dale of the damage or destruction as to whether or not
the damage is Partial or Total.

        (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 data 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 weather 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 tee 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.

        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 $5,000 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: (1) make such restoration and repair as is
commercially reasonable with Lessor paying any shortage in proceeds, in which
case this Lease shall remain in lull force and effect, or (I) 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.

        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 () 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 (I)
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 she 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
fight 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 tills 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 () the
date which Is 10 days alter Lessee's receipt of Lessor's written notice
purporting to terminate this Lease, or (ii) the day prior to the dale 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 falls in 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 horn 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 time prior to the
commencement of such repair or restoration, give written notice to Lessor and ID
any Lenders of which Lessee has actual notice of Lessee's election to terminate
this Lease on a dale not less than 60 days following the gluing 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 arty 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      
Definitions

        (a)      
"Real Property Taxes." 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, Lessors right
to other income therefrom, and/or Lessor's business of leasing, by any seniority
having the direct or indirect power to two 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, 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 or any portion thereof or a charge in
the improvements thereon.

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        (b)      
"Base Real Property Taxes." As used herein, the term "Base Real Property
Taxes" shall be the amount of Real Property Taxes, which are assessed against
the Premises, Building, Project or Common Areas in the calendar year during
which the Lease is executed. In calculating Real Properly Taxes for any calendar
year, the Real Property Taxes for any real estate tax year shall be included in
the calculation of Real Properly 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. Lessor shall pay the Real Property Taxes applicable 10
the Project, and except as otherwise provided in Paragraph 10.3, any increases
in such amounts over the Base Real Property Taxes 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 shell, 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 or Alterations,
Trade Fixtures or Utility Installations placed upon the Premises by Lessee or at
Lessee's request-

        10.4      
Joint Assessment. lithe Building is not separately assessed, Real
Property Taxes allocated to the Building shall be an equitable proportion of the
Rear Property Taxes for all of the land and improvements included within the tax
piece, 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.

        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 as 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.
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 42,11 al 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 dumpster and/or an Increase in the number
of times per month that the dumpster is emptied, then Lessor, may increase
Lessee's Base Rent by an amount equal to such increased costs.

         

        12.     
     Assignment
and Subletting.

        12.1       Lessor's
Consent Required.

        (a)        Lessee
shall not voluntarily or by operation of Jaw 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 Lessors prior written
consent.

        (b)        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 11
was represented at the time of the execution of Ns 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 Lessors 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, (ii) 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.

        12..2      Terms
and Conditions Applicable to Assignment and
Subletting.

        (a)        Regardless
of Lessee consent, any assignment or subletting shall not: (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. Nether 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 a consent to any
subsequent assignment or subletting.

        (d)        In
the event of any Default or Breech 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 Lessors 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 Lassoes 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 arty, together with a fee of $1,060 or 10% of
the current month's Base Rent applicable to the portion of the Premises which Is
the subject of the proposed assignment or sublease, whichever is greater, as
consideration for Lessor's considering and processing said request. Lessee
agrees to provide Lessor with such other or additional information and/or
documentation as may be reasonably requested.

        (f)        Any
assignee of, or sublessee under, this Lease shall, by reason of accepting such
assignment or entering Into such sublease, be deemed to have assumed and agreed
to conform and comply with each and every term, covenant, condition and
obligation herein to be observed or performed by 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.

        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 expresser incorporated therein:

        (a)        Lessee
hereby assigns and transfers to Lessor all of Lessee's Interest in at 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. Lessor shell not, by reason of the foregoing or any assignment of such
sublease, two 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.

        (b)        In
the event of a Breach by Lessee, Lessor may, at Its option, require sublessee to
atom 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 ;aid 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 light Is 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 horn end 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 properly
insurance described in Paragraph 5.3 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 arty 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 petted of 3 business days following written notice
to Lessee.

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        (c)       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, (re) an Estoppel Certificate, (v)
a requested subordination, (vi) evidence concerning any guaranty and/or
Guarantor, (vii) any document requested under Paragraph 41 (easements), or
(viii) 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.

        (d)       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), (IN) or (c), 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 Mutt not tie deemed to be a Breach If Lessee
commences Such cure within
said 30 day period and thereafter diligently prosecutes such cure to
completion,

        (e)       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 50 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 (v) 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 (e) is contrary to any applicable law, such
provision Shall be of no force or effect, and not affect the validity of the
remaining provisions.

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

        (g)       If
the performance of Lessee's obligations under this Lease is guaranteed: (i) the
death of a Guarantor, lie the termination of a Guarantor's liability with
respect to this Lease other than in accordance with the terms of such guaranty,
(ii) 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 071 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 fats 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,
inducting but not limited to the obtaining of reasonably required tends,
insurance policies, or governmental licenses, permits or approvals. The costs
and expenses of any such performance by Lessor shall be the and payable by
Lessee upon receipt of Invoice therefor.. If any check given to Lessor by Lessee
shall not be honored by the hank upon which it is draws, Lessor, at its option,
may require all future payments to be made by Lessee to be by cashier's check.
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 mason of such Breach:

        (a)       Terminate
Lessee's right to possession of the Premises by any lawful means, in which case
Vile Lease shah terminate and Lessee shall Immediately surrender possession to
Lessor. In such event Lessor Melt 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 unfit the time of award exceeds the amount of such
rental loss that the Lessee proves could have been
reasonably avoided; (lie the worth at the time of award of the amount by
witch 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
lately 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 await of the amount referred to In
provision Me of the Immediately preceding sentence shall be computed lay
discounting such amount at the discount rate of
the Federal Reserve Bank of the District Within which the Premises are
heated 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 Lessees right to recover damages under Paragraph 12. If termination of
this Lease Is obtained through the provisional remedy of unlawful detainee,
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 en
unlawful detainer and a Breach of this Lease entitling Lessor to the remedies
provided far in this Lease and/or by said statute.

        (b)       Continue
the Lease and Lessee's right to possession and recover the Rent as ft 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.

        (c)       Pursue
any ether 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 Debility under any indemnity provisions of This Lease as to
matters occurring or accruing during the term hereof or by reason of Lessees
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 sport 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 IF 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 Meted to, processing and accounting charges, and late charges which
may be imposed upon Lessor by any Lender. Accordingly, it 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 seat! 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) Of within 30
days following the date on which a was due for non-scheduled payment, Shall bear
interest from the dale when due, as to scheduled payments, or the 31st day after
it was due as to non-scheduled payments. The interest (interred') charged shall
be equal to the prime rate reported in the Wail Street Journal as published
closest prior to the date when due plus 4%, 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 shell riot 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 famished Lessee in writing for such purpose, of written
notice specifying wherein such obligation of Lessor has not been performed;
provided, however, that it 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 end
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 an amount equal to
the greater of one month's Base Rent or the Security Deposit, and to pay an
excess of such expense under protest, reserving Lessee's right to reimbursement
from Lessor. 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 (collectivity
“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
melon, to be exercised in writing within 10 days after Lessor shall have given
Lessee written notice of such Wang (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 lakes such possession. ff Lessee
does not terminate this Lease in accordance with the foregoing, this Lease shall
remain In full fame 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 therefor. 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.

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        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) it Lessee exercises any Option, (b) if 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) Base Rent is
increased, whether by agreement or operation of an escalation clause herein,
then, Lessor Chat 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 Lessors interest in this Lease
shall be deemed to have assumed Lessors 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 suet) 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
end 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
indemnity, 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.

         

        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 witting in form similar to the then most current
''Estoppel Certificate" form published by the American Industrial 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 staling that: (I) the Lease is In full force and effect without
modification except as may be represented by the Requesting Perry, (ii) there
are no uncured defaults in the Requesting Party's performance, and (iii) if
Lessor is the Requesting Party, rot more than one month's rent has been paid in
advance. Prospective purchasers and encurnbrancers 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 arty part
thereof, Lessee and all Guarantors that 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 nor 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) arty unused
Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such
transfer on assignment and delivery of the Security Depose 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 Notwithstanding the above, and subject to the provisions of Paragraph 20
below, the original Lessor under this Lease, and all
subsequent holders of the
Lessors Interest in this Lease shall remain liable and responsible with
regard to the potential duties and liabilities of Lessor pertaining to Hazardous
Substances as outlined in Paragraph 6.2 above.

         

        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 that mean and refer to calendar days.

         

        20.        
  Limitation
on liability. Subject to the provisions of Paragraph 17 above, the
obligations of Lessor under this Lease shall not constitute personal obligations
of Lessor, the individual partners of Lessor or its or their individual
partners. 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 the
Individual partners of Lessor, or his or their individual partners, 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 art
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 Brokers
liability shall not be applicable to any gross negligence or WNW 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 mete. except
that upon Lessee's taking possession of the Premises, the Premises shall
constitute Lessee's address for notice. A copy of 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 48 hours alter 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 melt. If notice Is received an a Saturday, Sunday or legal holiday, it shall
be deemed received
on the not 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 monies 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 it 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 city. 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 agents duties. b. A duly of honest arid 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 otter Party which does not Involve the affirmative duties set forth
above.

        (ii)       Lessee's
Agent. An agent can agree to Oct 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 duty 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 agents 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 Mown 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.

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

        (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 liability (including court costs and attorneys' fees), of any Broker
with respect to any breath of duly, error or omission relating to this Lease
shall riot exceed the fee received by such Broker pursuant to this Lease;
provided, however, that the foregoing limitation art 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
15096 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. Wherever required
by the context, the singular shall include the plural and vice versa. This Lease
shall not he construed as if prepared by one of the Parties, but rather
according to its fair meaning as a whole, as it 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 he governed by the
laws of the Stale In which the Premises are located. Any litigation between the
Parties hereto concerning this Lease shall be initiated in the sourly in which
the Premises are located.

         

        30.       
   Subordination;
Attornment; Non-Disturbance.

        30.1       Subordination.
This Lease and any Option granted hereby shall he 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 attentions thereof. Lessee agrees that the holders
of any such Security Devices (In this Lease together related 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 anchor any
Option granted hereby superior to the hen 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       Monument.
Subject to the
non-disturbance provisions of Paragraph 30.3, Lessee agrees to attorn to
a Lender or any other party who acquires ownership of the Premises by reason of
a foreclosure of a Security Device, and that in the event of such foreclosure,
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 hound by prepayment of more than one month's rent, or (d)
be liable for the return of any semidry dermal pall to any plot
lessor.

        30.3       Non-Disturbance.
With respect to Security Devices entered into by Lessor alter the execution of
ibis 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 term hereof. will not be disturbed so tong as Lessee Is not in Breach
hereof and atoms to the record owner of the Premises. Further, within 60 days
ones 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
lees 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 ten
"Prevailing Party" shall include, without limitation, a Patty 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 out voted
in accordance with any court tee 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 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. All such
activities shall be without abatement of rent or liability to Lessee. Lessor may
at any lime place on the Premises any ordinary For Sale' signs and Lessor may
during the lest 6 months of the ten hereof place on the Premises any ordinary
"For
Lease" signs. Lessee may at any time place on In Premises any ordinary
“For Sublease” sign.

         

        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.
Except for ordinary "For Sublease" signs which may be placed only an the
Premises, Lessee shall not place any sign upon the Project without Lessors 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 sub
tenancies. Lessors 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 Lessors 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 therefore. Lessors consent to any act, assignment
or subletting shall not constitute an acknowledgement that no Default or Breach
by Lessee or 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.

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

        37.          
Guarantor.

        37.1       Execution.
The Guarantors, if any, shall each execute a guaranty in the form most recently
published by the American Industrial Real Estate Association, and each such
Guarantor shall have the same obligations as Lessee under this
Lease.

        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 Guarantors 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 mailing 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 line 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, (1) 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, alter such exercise and prim
to the commencement of the extended term. (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), (ii) Lessor gives to Lessee 3 or more notices of
separate Default during any 12 month period, Whether or not the Defaults are
cured, or (hi) 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, (i)
to cause the recordation of parcel maps and restrictions, and Off) to create
and/or install new utility raceways, so long as such easements, rights,
dedications, maps, restrictions, and unity 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 ender 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 shell be entitled to recover such sum Or so much
thereof as It was not legally required to pay.

         

        43.          
Authority.
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 attar request, deliver to the other party satisfactory evidence
of such authority.

         

        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 alt
Patties 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.          
Multiple
Parties. If more than one person or entity is earned herein as either
Lessor or Lessee, such multiple Parties shall have joint and several
responsibility to comply with the terms of this Lease.

         

        48.        
  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.

         

        49.        
  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 þ is not attached to this
Lease.

         

        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 AMERICAN INDUSTRIAL 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.

         

        50
Utilities. Any amount over $80.00 a month on the water and sewer utilities will
be billed to the Lessee per month.

          
            
               

            

            
              11

              
                

              

            

            
               

            

          

      

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

       

       

      
        	
                 Executed
      at: 3144 West Clarendon
      Avenue                            
                                                   
      

              	 
      	
                 Executed
      at: 3144 West Clarendon
      Avenue                                                                          
      

              
	
                 on:
      2/18/08                                                                                     
                                                  
      

              	 
      	 
      
	 
      	 
      	 
      
	
                 By
      LESSOR:
    ______________________________________________________

              	 
      	
                  By
      LESSEE:
    ______________________________________________________

              
	
                 Hawkins Properties,
      LLC                                                                                                          
      

              	 
      	
                 AmerElite Solutions,
      Inc                                                                                                          
      

              
	 
      	 
      	 
      
	
                 By:
      /s/ William R.
      Hawkins                                                                                                       
      

              	 
      	
                 By:
      /s/ Robert L.
      Knapp                                                                                                           
      

              
	
                 Name
      Printed: William R.
      Hawkins                                                                                          

              	 
      	
                 Name
      Printed: Robert L.
      Knapp                                                                                              
      

              
	
                 Title:                                                                                                                                            
      

              	 
      	
                 Title:
      President                                                                                                                          
      

              
	 
      	 
      	 
      
	
                 By:
      _____________________________________________________________

              	 
      	
                 By:
      _____________________________________________________________

              
	
                 Name
      Printed: _____________________________________________________ 

              	 
      	
                 Name
      Printed: _____________________________________________________

              
	
                 Title: ____________________________________________________________ 

              	 
      	
                 Title: ____________________________________________________________

              
	
                 Addres:
      P. O. Box
      62258                                                                                                           
      

              	 
      	
                 Address:
      3122 West Clarendon
      Avenue                                                                               
      

              
	
                 Phoenix, AZ
      85082                                                                                              
                           
      

              	 
      	
                 Phoenix, AZ
      85017                                                                                                                    
      

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                 Telephone:
      (602)
      263-0022                                                                                                       
      

              	 
      	
                 Telephone:
      (    
      )                                                                                                                         
      

              
	
                 Facsimile:
      (602)
      263-1122                                                                                                          
      

              	 
      	
                 Facsimile:
      (   
      )                                                                                                                           
        

              
	
                 Federal
      ID No.
    _____________________________________________________

              	 
      	
                 Federal ID No.
      #76-0766174                                                                                                     
      

              

      

       

       

      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: American Industrial Real Estate Association, 700 South Flower Street,
Suite 600, Los Angeles, CA 90017. (213) 667-8777.

       

      (c)Copyright
1998 By American Industrial Real Estate Association.

      All
rights reserved.

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

       

      12

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