Document:

exv4w2

EXHIBIT 4.2

UNLESS THIS GLOBAL NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO NISOURCE FINANCE CORP. AND NISOURCE
INC. OR THEIR AGENT OR AGENTS FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY GLOBAL
NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES
OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS
GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.

			
	 
	No.:                     
	 	$                     

CUSIP No.: 65473QAT0

ISIN No.: US65473QAT04

6.80% Notes due 2019

          NiSource Finance Corp., an Indiana corporation, promises to pay to Cede & Co, or registered
assigns, the principal sum of                                          on January 15, 2019.

          Interest Payment Dates: January 15 and July 15, commencing January 15, 2009

          Record Dates: January 1 and July 1

 

 

          Additional provisions of this Note are set forth on the other side of this Note.

Dated:                     

	 	 	 	 	 	 	 
	 	 	NISOURCE FINANCE CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

This is one of the Notes of the series

referred to in the within-mentioned Indenture.

THE BANK OF NEW YORK,

as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Officer
	 	 

 

 

6.80% Notes due 2019

1. Interest

          NiSource Finance Corp., an Indiana corporation (such corporation, and its successors and
assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Note at the rate per annum shown above. The
Company will pay interest semiannually on January 15 and July 15 of each year, commencing January
15, 2009. Interest on the Notes will accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from May 20, 2008. Interest will be computed on the basis
of a 360-day year of twelve 30-day months. The Company will pay interest on overdue principal and
premium at the above rate and will pay interest on overdue installments of interest at such rate to
the extent lawful.

2. Method of Payment

          The Company will pay interest on the Notes (except defaulted interest) to the Persons who are
registered Holders of Notes at the close of business on the January 1 or July 1 next preceding the
Interest Payment Date even if Notes are canceled after the Record Date and on or before the
Interest Payment Date. Holders must surrender Notes to a Paying Agent to collect principal
payments. The Company will pay principal and interest in money of the United States that at the
time of payment is legal tender for payment of public and private debts. Payments in respect of
the Notes represented by a Global Note (including principal, premium, if any, and interest) will be
made by wire transfer of immediately available funds to the accounts specified by The Depository
Trust Company.

3. Guarantee

          NiSource Inc., a Delaware corporation and parent of the Company, will fully and
unconditionally guarantee to each Holder of the Notes and to The Bank of New York (as successor in
interest to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), as Trustee
(the “Trustee”) under the Indenture (as defined below) and its successors all the Obligations of
the Company under the Notes, including the due and punctual payment of the principal of, premium,
if any, and interest, if any, on the Notes (the “Security Guarantee”). The Security Guarantee
applies whether the payment is due at Stated Maturity, on an Interest Payment Date or as a result
of acceleration, redemption or otherwise. The Security Guarantee includes payment of interest on
the overdue principal of, premium, if any, and interest, if any, on the Notes (if lawful) and all
other Obligations of the Company under the Indenture. The Security Guarantee will remain valid
even if the Indenture is found to be invalid. NiSource Inc. is obligated under the Security
Guarantee to pay any guaranteed amount immediately after the Company’s failure to do so.

 

 

4. Paying Agent and Security Registrar

          Initially, the Trustee will act as Paying Agent and Security Registrar. The Company may
appoint and change any Paying Agent or Security Registrar without notice to the Holders. The
Company may act as Paying Agent or Security Registrar.

5. Indenture

          The Company issued the Notes under an Indenture dated as of November 14, 2000, among the
Company, NiSource Inc. and the Trustee (as supplemented, the “Indenture”) and pursuant to an
Officers’ Certificate of the Company dated August 31, 2007 (the “Officer’s Certificate”). The
terms of the Notes include those stated in the Indenture and the Officer’s Certificate and those
made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. sections
77aaa-77bbbb) as in effect on the date of the Officer’s Certificate (the “Act”). Capitalized terms
used herein and defined in the Indenture but not defined herein have the meanings ascribed thereto
in the Indenture. The Notes are subject to all such terms, and Holders of Notes are referred to
the Indenture and the Act for a statement of those terms.

          The Notes are senior unsecured obligations of the Company. The Notes issued on the Issue Date
will be treated as a single class for all purposes under the Indenture. The Indenture contains
covenants that limit the ability of the Company, NiSource Inc. and their Subsidiaries (other than
Utilities) to incur additional indebtedness and create liens on assets unless the total amount of
all the secured debt would not exceed 10% of Consolidated Net Tangible Assets. These covenants are
subject to important exceptions and qualifications.

6. Optional Redemption

          The Company may redeem all or part of the Notes at any time at its option at a redemption
price equal to the greater of (1) 100% of the principal amount of the Notes being redeemed plus
accrued interest to the Redemption Date or (2) the Make-Whole Amount for the Notes being redeemed.
For purposes of this provision:

          “Make-Whole Amount” means the sum, as determined by a Quotation Agent, of the present values
of the principal amount of the Notes to be redeemed, together with scheduled payments of interest
(exclusive of interest to the Redemption Date) from the Redemption Date to the Stated Maturity of
the Notes, in each case discounted to the Redemption Date on a semi-annual basis, assuming a
360-day year consisting of twelve 30-day months, at the Adjusted Treasury Rate, plus accrued
interest on the principal amount of the Notes being redeemed to the Redemption Date.

          “Adjusted Treasury Rate” means, with respect to any Redemption Date, (i) the yield, under the
heading which represents the average for the immediately preceding week, appearing in the most
recently published statistical release designated “H.15 (519)” or any successor publication which
is published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded United States Treasury securities adjusted to constant maturity under the
caption “Treasury Constant

 

 

Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity
is within three months before or after the remaining term of the Notes, yields for the two
published maturities most closely corresponding to the Comparable Treasury Issue shall be
determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from such yields on
a straight line basis, rounding to the nearest month) or (ii) if such release (or any successor
release) is not published during the week preceding the calculation date or does not contain such
yields, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue assuming a price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for such Redemption Date, in each case
calculated on the third Business Day preceding the Redemption Date, plus 0.50%.

          “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term from the Redemption Date to
the Stated Maturity of the Notes that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Notes.

          “Comparable Treasury Price” means, with respect to any Redemption Date, if clause (ii) of the
definition of Adjusted Treasury Rate is applicable, the average of three, or such lesser number as
is obtained by the Company, Reference Treasury Dealer Quotations for such Redemption Date.

          “Quotation Agent” means the Reference Treasury Dealer selected by the Company.

          “Reference Treasury Dealer” means a primary U.S. Government securities dealer selected by the
Company.

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by a Reference Treasury Dealer, of the bid and
asked prices for the Comparable Treasury Issue, expressed in each case as a percentage of its
principal amount, quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third Business Day preceding such Redemption Date.

7. Notice of Redemption

          If the Company is redeeming less than all the Notes at any time, the Trustee will select the
Notes to be redeemed using a method it considers fair and appropriate. Notice of redemption will
be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of
Notes to be redeemed in accordance with Section 106 of the Indenture. Notes in denominations
larger than $1,000 principal amount may be redeemed in part but only in integral multiples of
$1,000. The Company will not know the exact Redemption Price until three Business Days before the
Redemption Date. Therefore, the notice of redemption will only describe how the

 

 

Redemption Price will be calculated. If money sufficient to pay the Redemption Price of and
accrued interest on all Notes (or portions thereof) to be redeemed on the Redemption Date is
deposited with the Paying Agent on or before the Redemption Date and certain other conditions are
satisfied, on and after such Redemption Date interest will cease to accrue on such Notes (or such
portions thereof) called for redemption.

8. Additional Notes

          The Company may, without the consent of the Holders of the Notes, create and issue Additional
Notes ranking equally with the Notes in all respects, including having the same CUSIP number, so
that such Additional Notes shall be consolidated and form a single series with the Notes and shall
have the same terms as to status, redemption or otherwise as the Notes. No Additional Notes may be
issued if an Event of Default has occurred and is continuing with respect to the Notes.

9. Denominations; Transfer; Exchange

          The Notes are in registered form without coupons in denominations of $1,000 principal amount
and integral multiples of $1,000. A Holder may transfer or exchange Notes in accordance with the
Indenture. The Security Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. The Security Registrar need not register the transfer or exchange of any Notes
selected for redemption (except, in the case of a Note to be redeemed in part, the portion of the
Note not to be redeemed) for a period of 15 days before a selection of Notes to be redeemed.

10. Persons Deemed Owners

          The registered Holder of this Note may be treated as the owner of it for all purposes.

11. Unclaimed Money

          If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its request. After any such payment,
Holders entitled to the money must look only to the Company and not to the Trustee, the Paying
Agent or NiSource Inc., as guarantor, for payment.

12. Satisfaction and Discharge

          Under the Indenture, the Company can terminate its obligations with respect to the Notes not
previously delivered to the Trustee for cancellation when those Notes have become due and payable
or will become due and payable at their Stated Maturity within one year or are to be called for
redemption within one year under arrangements satisfactory to the Trustee for giving notice of
redemption. The Company may terminate its obligations with respect to the Notes by depositing with
the Trustee, as funds in trust dedicated solely for that purpose, an amount sufficient to pay and
discharge

 

 

the entire indebtedness on the Notes. In that case, the Indenture will cease to be of further
effect and the Company’s obligations will be satisfied and discharged with respect to the Notes
(except as to the Company’s obligations to pay all other amounts due under the Indenture and to
provide certain Officers’ Certificates and Opinions of Counsel to the Trustee). At the expense of
the Company, the Trustee will execute proper instruments acknowledging the satisfaction and
discharge.

13. Amendment, Waiver

          Subject to certain exceptions set forth in the Indenture, (i) the Indenture and the Notes may
be amended with the written consent of the Holders of at least a majority in principal amount
outstanding of the Notes and (ii) any default or noncompliance with any provision may be waived
with the written consent of the Holders of a majority in principal amount outstanding of the Notes.
Subject to certain exceptions set forth in the Indenture, without the consent of any Holder, the
Company and the Trustee shall be entitled to amend the Indenture to cure any ambiguity, omission,
defect or inconsistency, or to evidence the succession of another Person as obligor under the
Indenture, or to add to the Company’s or NiSource Inc.’s covenants or to surrender any right or
power conferred on the Company or NiSource Inc. under the Indenture, or to add events of default,
or to secure the Notes, or to evidence or provide for the acceptance or appointment by a successor
Trustee or facilitate the administration of the trusts under the Indenture by more than one
trustee, or to effect assumption by NiSource Inc. or one of its Subsidiaries of the Company’s
obligations under the Indenture, or to conform the Indenture to any amendment of the Trust
Indenture Act.

14. Defaults and Remedies

          Under the Indenture, Events of Default include: (i) default by the Company in the payment of
any interest upon any Note and the continuance of such default for 60 days; (ii) default by the
Company in the payment of principal of or any premium on any Note when due at Stated Maturity, on
redemption, by declaration or otherwise, and the continuance of such default for three Business
Days; (iii) default by the Company or NiSource Inc. in the performance of or breach of any covenant
or warranty in the Indenture and continuance of such default for 90 days after written notice to
the Company or NiSource Inc. from the Trustee or to the Company, NiSource Inc. and the Trustee from
the Holders of at least 33% in principal amount of the Outstanding Notes; (iv) default by the
Company or NiSource Capital Markets, Inc. under any bond, debenture, note or other evidence of
indebtedness for money borrowed by the Company or NiSource Capital Markets, Inc., or the Company or
NiSource Capital Markets, Inc. defaults under any mortgage, indenture or instrument under which
there may be issued, secured or evidenced indebtedness constituting a failure to pay in excess of
$50,000,000 of the principal or interest when due and payable, subject to certain cure rights; (v)
the guarantee by NiSource Inc. ceases to be in full force and effect or is disaffirmed or denied
(other than according to its terms), or is found to be unenforceable or invalid; or (vi) certain
events of bankruptcy, insolvency or reorganization of the Company, NiSource Capital Markets, Inc.
or NiSource Inc. If an Event of Default occurs and is continuing,

 

 

the Trustee or the Holders of at least 33% in principal amount of the Notes may declare all
the Notes to be due and payable immediately.

          Holders may not enforce the Indenture or the Notes except as provided in the Indenture. The
Trustee may refuse to enforce the Indenture or the Notes unless it receives indemnity or security
satisfactory to it. Subject to certain limitations, Holders of a majority in principal amount of
the Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold
from Holders notice of any continuing default (except a default in payment of principal or
interest) if it determines that withholding notice is in the interest of the Holders.

15. Trustee Dealings with the Company

          Subject to certain limitations imposed by the Act, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal
with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it were not Trustee.

16. No Recourse Against Others

          A director, officer, employee or stockholder, as such, of the Company, NiSource Inc. or the
Trustee shall not have any liability for any obligations of the Company under the Notes or the
Indenture, or any obligations of NiSource Inc. under the Security Guarantee or the Indenture, or
for any claim based on, in respect of or by reason of such obligations or their creation. By
accepting a Note, each Holder waives and releases all such liability. The waiver and release are
part of the consideration for the issue of the Notes and the Security Guarantee.

17. Authentication

          This Note shall not be valid until an authorized signatory of the Trustee (or an
Authenticating Agent) manually signs the certificate of authentication on the other side of this
Note.

18. Abbreviations

          Customary abbreviations may be used in the name of a Holder or an assignee, such as TEN COM
(=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of
survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).

19. CUSIP, ISIN and Common Code Numbers

          Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Notes and has directed the
Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders. To the extent
such numbers have been issued,

 

 

the Company has caused ISIN and Common Code numbers to be similarly printed on the Notes and
has similarly instructed the Trustee. No representation is made as to the accuracy of such numbers
either as printed on the Notes or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

20. Governing Law.

          THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE
OF NEW YORK, WITHOUT GIVING EFFECT TO CONTRARY CONFLICT OF LAWS OR CHOICE OF LAWS PROVISIONS OF THE
STATE OF NEW YORK OR ANY OTHER JURISDICTION.

          The Company will furnish to any Holder upon written request and without charge to the Holder a
copy of the Indenture. Requests may be made to:

NiSource Finance Corp.

801 East 86th Avenue

Merrillville, Indiana 46410

Attention: Secretary

 

 

ASSIGNMENT FORM

To assign this Note, fill in the form below:

I or we assign and transfer this Note to

 

 

(Print or type assignee’s name, address and zip code)

 

(Insert assignee’s soc. sec. or tax I.D. No.)

and irrevocably appoint _____ agent to transfer this Note on the books of the Company. The agent may
substitute another to act for him.

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 	 	 

	 	 	 
	 

	 	 
	 

	 	Sign exactly as your name appears on the
other side of this Note.

Signature Guarantee:

	 	 	 
	 

	 	 
	Signature must be guaranteed

	 	Signature

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of
the Security Registrar, which requirements include membership or participation in the Security
Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Security Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

 

 

SECURITY GUARANTEE

          NiSource Inc. irrevocably and unconditionally guarantees the Obligations of NiSource Finance
Corp., an Indiana corporation (the “Company”) under the 6.80% Notes due 2019 (the “Notes”) of the
Company, including that (i) the principal of, premium, if any, and interest on the Notes shall be
promptly paid in full when due, whether at Stated Maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of, premium, if any, and interest on the Notes, if
lawful, and all other Obligations of the Company to the Holders or the Trustee shall be promptly
paid in full or performed, and (ii) in case of any extension of time of payment or renewal of any
Notes or any such other Obligations, that the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at Stated Maturity, by
acceleration or otherwise. Failing payment when due of any amount so guaranteed or any performance
so guaranteed, NiSource Inc. shall be obligated to pay or perform the same immediately.

          The obligations of NiSource Inc. to the Holders and to the Trustee pursuant to this Security
Guarantee and the Indenture are expressly set forth in Article Fifteen of the Indenture, and
reference is hereby made to such Indenture for the precise terms of this Security Guarantee.

          No stockholder, employee, officer, director or incorporator, as such, past, present or future,
of NiSource Inc. shall have any liability under this Security Guarantee by reason of his or its
status as such stockholder, employee, officer, director or incorporator.

          This Security Guarantee shall remain in full force and effect and continue notwithstanding any
petition filed by or against the Company for liquidation or reorganization.

          This Security Guarantee shall not be valid or obligatory for any purpose until the certificate
of authentication on the Note upon which this Security Guarantee is noted shall have been executed
by the Trustee under the Indenture by the manual signature of one of its authorized officers.

          THE TERMS OF ARTICLE FIFTEEN OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

 

 

          Capitalized terms used herein have the same meanings given in the Indenture unless otherwise
indicated.

	 	 	 	 	 	 	 
	 	 	NISOURCE INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:exv10w1

Exhibit 10.1

AMENDMENT NO. 2 TO

OFFICE BUILDING LEASE

(1901 Main Street, Irvine: Alliance Bank)

     This AMENDMENT NO. 2 TO OFFICE BUILDING LEASE (“Amendment”) is made as of the 29th day of
February, 2008, by and between PIEDMONT OPERATING PARTNERSHIP, L.P., a Delaware limited partnership
(“Landlord”), and ALLIANCE BANK, a California banking corporation (“Tenant”), with reference to the
facts set forth in the Recitals below.

RECITALS

     A. Tenant and the predecessor-in-interest of Landlord previously entered into that certain
Office Building Lease dated December 18, 2001, as amended by that certain Amendment No. 1 To Office
Building Lease (the “First Amendment”) dated August, 2002 (such lease, as so amended, the “Lease”),
whereby Tenant leases from Landlord those certain premises known as Suites 100 and 175 (the
“Existing Premises”), consisting of approximately 8,174 total Rentable Square Feet on the ground
floor of that certain building located at 1901 Main Street, Irvine, California (the “Building”).

     B. Tenant and Landlord desire to amend the Lease to add additional premises and to extend the
term of the Lease, upon and subject to the terms and conditions set forth in this Amendment.

     C. Capitalized terms which are not defined in this Amendment shall have the meanings given to
them in the Lease.

WITNESSETH

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

     1. Addition of Second Floor Premises.

     (a) Effective as of the Second Floor Premises Delivery Date (as defined in Exhibit
“C-I”), Paragraph 1(f) and (g) of the Lease is hereby amended to read in their entirety as
follows:

(f) Building: An eight (8) story office building containing approximately
170,928 Rentable Square Feet, with the street address of 1001 Main Street,
Irvine, California 92814. The parties acknowledge that the Rentable Square
Feet of the Building shall be as set forth above and agree that the same
shall not be subject to adjustment under Exhibit “B” or Exhibit
“D”.

(g) Premises: Those certain premises known as Suites 100, 175 and 200
containing an aggregate of approximately 25,125 Rentable Square Feet (21,623
Usable Square Feet and comprised of the following: the premises (the “First
Floor Premises”) known as Suites 100 and 175 as generally shown on the floor
plan attached hereto as Exhibit “A-II”, located on the first
(1st) floor of the Building, which premises contain approximately
8,174 Rentable Square Feet (6,861 Usable Square Feet) (the “First Floor
Premises”), and the premises (the “Second Floor Premises”) known as Suite 200
as generally shown on the floor plan which is Exhibit “A-III” to this
Lease, located on the second (2nd) floor of the Building, which
premises contain approximately 16,951 Rentable Square Feet (14,762 Usable
Square Feet). The parties acknowledge that the Rentable and Usable Square
Feet of the Premises shall be as set forth above and agree that the same
shall not be subject to adjustment under Exhibit “B” or Exhibit
“D”.

1

 

     (b) Effective as of the Second Floor Rent Commencement Date, Paragraph 1(h) of the Lease is
hereby amended to read in its entirety as follows:

(h) Tenant’s Percentage: Tenant’s percentage of the Building on a Rentable
Square Foot basis is 14.70%, comprised of 4.78% for the First Floor Premises
and 9.92% for the Second Floor Premises.

     (c) Exhibit “A-III” attached to this Amendment is hereby incorporated into the Lease
and made a part thereof.

     (d) In the event of any conflict between the provisions of this Amendment relating to areas of
the Premises and the Building and the provisions otherwise set forth in the Lease or the First
Amendment, the provisions of this Amendment shall govern.

     2. Extension of Term.

     (a) Paragraph 1(i) of the Lease is hereby amended to read in its entirety as follows: “Term:
The period beginning upon the Commencement Date and ending on June 30, 2018.”

     (b) The first sentence of Paragraph 3 of the Lease, entitled “Term,” is hereby amended to read
in its entirety as follows: “The term of this Lease (“Term”) will be for the period designated in
Paragraph 1(i), including any extensions of the Term pursuant to any provisions of this Lease or
the written agreement of the parties.”

     (c) Paragraph 1(j) of the Lease is hereby amended to read in its entirety as follows:
“Expiration Date: June 30, 2018.”

     (d) All references in the Lease to the “Initial Term” or the “original Term” or words of
similar import shall mean and refer to the portion of the Term of the Lease ending on November 30,
2007.

     3. Monthly Base Rent.

     (a) Paragraph 1(m) of the Lease is hereby amended by adding the following at the end thereof:

The Monthly Base Rent for the period from December 1, 2007 through June 30,
2018 shall be as set forth in the following table:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Per Rentable
	Period	 	Monthly Base Rent	 	Square Foot
	 
	12/1/2007 to day prior to
Second Floor Rent Commencement Date
	 	$	23,295.90	 	 	$	2.85	 
	Second Floor Rent Commencement Date
to 11/30/2008 *
	 	$	71,606.25	 	 	$	2.85	 
	12/1/2008 to 11/30/2009
	 	$	73,754.44	 	 	$	2.94	 
	12/1/2009 to 11/30/2010
	 	$	75,967.07	 	 	$	3.02	 
	12/1/2010 to 11/30/2011
	 	$	78,246.08	 	 	$	3.11	 
	12/1/2011 to 11/30/2012
	 	$	80,593.47	 	 	$	3.21	 
	12/1/2012 to 11/30/2013
	 	$	83,011.27	 	 	$	3.30	 
	12/1/2013 to 11/30/2014
	 	$	85,501.61	 	 	$	3.40	 
	12/1/2014 to 11/30/2015
	 	$	88,066.66	 	 	$	3.51	 
	12/1/2015 to 11/30/2016
	 	$	90,708.66	 	 	$	3.61	 
	12/1/2016 to 11/30/2017
	 	$	93,429.91	 	 	$	3.72	 
	12/1/2017 to 6/30/2018
	 	$	96,232.81	 	 	$	3.83	 

 

			
	*	 	Notwithstanding the foregoing, in the event that the Second Floor Rent
Commencement Date occurs prior to July 1, 2008, the amount of the Monthly
Base Rent payable in respect of the period beginning upon the Second Floor
Rent Commencement Date and continuing through June 30, 2008 shall be
$47,451.08 per month, prorated on a daily basis for the number of days
actually included within such period.

2

 

     (b) The “Second Floor Rent Commencement Date” shall be the first to occur of the following:
(i) July 1, 2008, which date shall be subject to extension as provided in Section 6 of Exhibit
C-I hereto; (ii) the date upon which Tenant commences to operate its business in all or any
portion of the Second Floor Premises.

     (c) Upon execution of this Amendment, Tenant shall pay to Landlord the sum of $71,606.25 to be
applied in partial satisfaction of the amount of the Monthly Base Rent payable in the first full
calendar month following the Second Floor Rent Commencement Date.

     (d) Within thirty (30) days following the full execution and delivery of this Amendment,
Tenant shall pay to Landlord the amount of the shortfall between installments of Monthly Base Rent
theretofore paid by Tenant and the increased amount of Monthly Base Rent provided pursuant to the
Lease as amended by this Amendment. Tenant shall not be required to pay any increased holdover
rent pursuant to Paragraph 11(b) of the Lease in respect of any period prior to the expiration or
termination of the Term, as extended by this Amendment, nor shall Tenant be required to pay any
late payment charge or interest in respect of the increase in the Monthly Base Rent herein
provided, so long as Tenant pays the same within such thirty (30) day period.

     4. Base Year; Operating Expenses.

     (a) Effective December 1, 2007: (a) Paragraph 1(n) of the Lease is hereby amended by deleting
“2002” and substituting “2008” in place thereof as the Base Year in effect under the Lease from and
after December 1, 2007; and (b) Section 4 of the First Amendment is hereby deleted in its entirety.

     (b) For the period from January 1, 2007 through November 30, 2007, the amount payable by
Tenant pursuant to the Lease in respect of Tenant’s Percentage of Operating Expenses shall be
determined as originally provided in the Lease (without reference to the amendment made pursuant to
subsection (a) above), in the same manner as if the last day of the Term were November 30, 2007.
Tenant shall not be required to pay any amount in respect of Tenant’s Percentage of Operating
Expenses for the period from December 1, 2007 through December 31, 2008 (other than the Operating
Expense Allowance included in Monthly Base Rent).

     (c) Notwithstanding anything to the contrary contained in the Lease, with regard to the
aggregate amount included in Operating Expenses excluding insurance, utilities, taxes and security
expenditures (with such exclusions, the “Capped Expenses”), for purposes of determining the amount
payable by Tenant in respect of Tenant’s Percentage of Capped Expenses, in no event shall the
amount of the Capped Expenses for any calendar year following the Base Year be increased by more
than five percent (5%) per year on a cumulative basis, as provided below. Accordingly, for 2009
and each subsequent calendar year of the Term, the amount of the Capped Expenses shall in no event
be greater the Capped Expenses for the 2008 calendar year (the “Initial Amount”) multiplied by a
number of factors of 1.05 equal to the number of calendar years from 2008 to the year for which
Capped Expenses are being determined. For example, the amount of the Capped Expenses used in
calculating Tenant’s Percentage shall not be greater than the following amounts: in 2009, the
Initial Amount times 1.05; in 2010, the Initial Amount times 1.05 times 1.05; in 2011, the Initial
Amount times 1.05 times 1.05 times 1.05; etc.

     5. Security Deposit.

     (a) Current Security Deposit. Subject to the provisions of subsection (b) of this
Section, the amount of the Security Deposit shall not be increased in connection with this
Amendment and shall be remain in the amount specified in Paragraph 1(o) of the Lease.

3

 

     (b) Additional Security Deposit. Tenant shall deposit with Landlord, as an additional
amount to be held as a Security Deposit under the Lease, Five Hundred Thousand Dollars ($500,000)
(the “Additional Security Deposit”), not later than ten (10) days after the occurrence of a
Triggering Event (as defined below). The Additional Security Deposit may be made in cash or a
Letter of Credit (as defined below). The failure of Tenant to timely make such deposit shall
constitute a default under the Lease, in respect of which Landlord shall have all of the rights and
remedies provided pursuant to the Lease.

          (i) Triggering Event. For purposes of this subsection, “Triggering Event” shall mean
either (A) that, as of the last day of any calendar quarter, Alliance Bank is no longer considered
to be well capitalized under the prompt corrective action rules of the Federal Deposit Insurance
Corporation (“FDIC”), as disclosed by Alliance Bank’s Report of Condition and Income (“Call
Report”), which Alliance Bank shall deliver to Landlord within forty (40) days following the last
day of each quarter, or (B) Alliance Bank is delinquent in delivering its Call Report to Landlord
and such failure continues for a period of ten (10) business days after Landlord’s written notice
to Alliance Bank of such delinquency. Alliance Bank shall, from time to time within ten (10)
business days following Landlord’s request, advise Landlord in writing whether a Triggering Event
has occurred and submit to Landlord its most recently submitted Call Report relevant to a
determination thereof; provided, however, that Landlord shall not make such requests more than four
(4) times in any calendar year. At the time at which the Triggering Event has been cured, the
Additional Security Deposit shall be returned to Tenant. It is acknowledged and agreed that: (1)
the reporting obligations of Alliance Bank specified in this subsection (i) shall be and remain the
direct obligations of Alliance Bank, notwithstanding any assignment by Alliance Bank of its
interest in this Lease; (2) the obligation of Tenant hereunder (including any assignee of the
interest of Alliance Bank herein) to make the Additional Security Deposit shall be determined by
reference to the financial tests regarding Alliance Bank specified above (not those of any assignee
Tenant); and (3) without limiting the generality of the provisions of Paragraph 24(i) of the Lease,
no assignment by Alliance Bank of the interest of the Tenant in the Lease shall release Alliance
Bank of its obligations under the Lease or alter the primary liability of Tenant to pay the rent
and to perform all other obligations to be performed by Tenant under the Lease.

          (ii) Letter of Credit. In lieu of a cash Additional Security Deposit, Tenant may
deliver to Landlord a clean, unconditional, irrevocable letter of credit in accordance with the
requirements set forth below (the “Letter of Credit”). The Letter of Credit shall be: (a) in form
and substance satisfactory to Landlord in its sole discretion (with the following criteria at a
minimum); (b) at all times in the stated face amount of not less than the Additional Security
Deposit, and shall on its face state that multiple and partial draws are permitted and either (i)
that partial draws will not cause a corresponding reduction in the stated face amount of the Letter
of Credit or (ii) that, within five (5) business days after any such partial draw, the issuer will
notify Landlord in writing that the Letter of Credit will not be reinstated to its full amount in
which event Landlord shall have the right to immediately draw on the remainder of the Letter of
Credit (it being understood that the total security deposit on hand, whether in cash or Letter of
Credit form, shall at all times be not less than the total Security Deposit Amount as so defined);
(c) issued by a commercial bank acceptable to Landlord from time to time and located in the Los
Angeles metropolitan area for the account of Tenant, and its permitted successors and assigns under
the Lease; (d) made payable to, and expressly transferable and assignable one or more times at no
charge by, the owner from time to time of the Building or its lender (which transfer/assignment
shall be conditioned only upon the execution of a reasonable and customary written document in
connection therewith),whether or not the original account party of the Letter of Credit continues
to be the tenant under the Lease by virtue of a change in name or structure, merger, assignment,
transfer or otherwise; (e) payable at sight upon presentment to a Los Angeles metropolitan area
branch of the issuer of a simple sight draft stating only that Landlord is permitted to draw on the
Letter of Credit under the terms of the Lease and setting forth the amount that Landlord is
drawing; (f) of a term not less than one year, and shall on its face state that the same shall be
renewed automatically, without the need for any further written notice or amendment, for successive
minimum one-year periods, unless the issuer notifies Landlord in writing, at least sixty (60) days
prior to the expiration date thereof, that such issuer has elected not to renew the Letter of
Credit (which will thereafter entitle Landlord to draw on the Letter of Credit); and (g) at least
thirty (30) days prior to the then-current expiration date of such Letter of Credit, either (1)
renewed (or automatically and unconditionally extended) from time to time through the ninetieth
(90th) day after the expiration of the Lease Term, or (2) replaced by Tenant

4

 

with cash, or another Letter of Credit meeting the requirements of this Section, in the full
amount of the Security Deposit. Tenant shall cooperate with Landlord to effect any modifications,
transfers or replacements of the Letter of Credit requested by Landlord in order to assure that
Landlord is at all times fully secured by a valid Letter of Credit that may be drawn upon by
Landlord, its successors and assigns. Notwithstanding anything in the Lease to the contrary, any
cure or grace period provided in connection with an Event of Default shall not apply to any of the
foregoing requirements of the Letter of Credit, and, specifically, if any of the aforesaid
requirements are not complied with timely, then an immediate Event of Default shall occur and
Landlord shall have the right to immediately draw upon the Letter of Credit without notice to
Tenant and apply the proceeds to the security deposit. Each Letter of Credit shall be issued by a
commercial bank that has a credit rating with respect to certificates of deposit, short term
deposits or commercial paper of at least A-2 (or equivalent) by Moody’s Investor Service, Inc., or
at least P-2 (or equivalent) by Standard & Poor’s Corporation, and shall be otherwise acceptable to
Landlord in its sole and absolute discretion. If the issuer’s credit rating is reduced below A-2
(or equivalent) by Moody’s Investors Service, Inc. or below P-2 (or equivalent) by Standard &
Poor’s Corporation, or if the financial condition of such issuer changes in any other materially
adverse way, then Landlord shall have the right to require that Tenant obtain from a different
issuer a substitute Letter of Credit that complies in all respects with the requirements of this
Section, and Tenant’s failure to obtain such substitute Letter of Credit within ten (10) days
following Landlord’s written demand therefor (with no other notice or cure or grace period being
applicable thereto, notwithstanding anything in the Lease to the contrary) shall entitle Landlord
to immediately draw upon the then existing Letter of Credit in whole or in part, without notice to
Tenant. In the event the issuer of any Letter of Credit held by Landlord is insolvent or is placed
into receivership or conservatorship by the Federal Deposit Insurance Corporation, or any successor
or similar entity, or if a trustee, receiver or liquidator is appointed for the issuer, then,
effective as of the date of such occurrence, said Letter of Credit shall be deemed to not meet the
requirements of this Section, and, within ten (10) days thereof, Tenant shall replace such Letter
of Credit with other collateral acceptable to Landlord in its sole and absolute discretion (and
Tenant’s failure to do so shall, notwithstanding anything in the Lease to the contrary, constitute
an Event of Default for which there shall be no notice or grace or cure periods being applicable
thereto other than the aforesaid ten (10) day period). Any failure or refusal of the issuer to
honor the Letter of Credit shall be at Tenant’s sole risk and shall not relieve Tenant of its
obligations hereunder with respect to the security deposit.

     6. Parking.

     (a) Paragraph 1(s) of the Lease is hereby amended to read in its entirety as follows:

(s) Parking:

Allocated Unreserved Parking Spaces: Prior to the Second Floor Rent
Commencement Date, thirty-three (33) unreserved employee parking spaces;
thereafter, one hundred one (101) unreserved employee parking spaces.

Minimum Unreserved Parking Spaces: Prior to the Second Floor Rent
Commencement Date, twenty (20) unreserved employee parking spaces;
thereafter, sixty-one (61) unreserved employee parking spaces. Tenant shall
pay the monthly fee herein provided for at least the applicable number of
Minimum Unreserved Parking Spaces, whether or not Tenant actually uses all
such spaces

Reserved Parking Spaces: Tenant shall have the right from time to
time to use up to fifteen (15) reserved parking spaces, and the number of the
Allocated Unreserved Parking Spaces of Tenant shall be reduced by the number
of reserved spaces used by Tenant. For so long as the Premises is being
operated as a retail bank, Tenant may designate that such reserved parking
spaces shall include up to four (4) reserved spaces in the surface parking
spaces located adjacent to the Building and marked for the exclusive use of
Tenant’s Bank and ATM customers (for which Tenant shall pay the monthly fee
for reserved spaces herein provided). Such Bank and ATM customer parking
spaces shall be located as indicated on Exhibit “A-

5

 

IV” or such alternative parking spaces as are mutually approved by
Tenant and Landlord.

Through June 30, 2013, the charge to Tenant for each unreserved and reserved
parking space shall be $50 per month and $85 per month, respectively, and the
charge for each space shall thereafter be subject to adjustment as provided
in Paragraph 32. All use of parking spaces shall be subject to Paragraph 32
and the Rules and Regulations regarding parking contained in Exhibit
“H”. In the event that the Premises are expanded pursuant to the right
of first refusal provisions set forth in Paragraph 2, the numbers of
Allocated Unreserved Parking Spaces and Minimum Unreserved Parking Spaces
shall be increased in the proportion that the area of the Available Space
bears to the area of the Premises prior to such expansion.

     (b) Exhibit “A-IV” attached to this Amendment is hereby incorporated into the Lease
and made a part thereof.

     (c) Section 9 of the First Amendment is hereby deleted in its entirety.

     7. Landlord’s Name and Notice Address; Tenant’s Notice Address. Paragraphs 1(a), (b)
and (d) of the Lease are hereby amended to read in their entirety as follows:

     (a) Landlord: PIEDMONT OPERATING PARTNERSHIP, L.P.,

a Delaware limited partnership

     (b) Landlord’s Address for Notices:

6200 The Corners Parkway, Suite 500

Norcross, Georgia 30092-2295

Attention: Asset Manager — West Region

or such other place as Landlord may from time to time designate by notice to
Tenant.

     (d) Tenant’s Address for Notices:

Alliance Bank

1901 Main Street, Suite 175

Irvine, California 92614

Attention: Dan Erickson

     or such other place as Tenant may from time to time designate by notice to
Landlord.

Tenant’s Address for Invoices:

Alliance Bank

100 Corporate Pointe

Culver City, California 90230

or such other place as Tenant may from time to time designate by notice to
Landlord.

     8. Remodeling of Premises; Tenant Allowance. The obligations of the parties with
regard to the remodeling of the Premises, including the tenant improvements to be constructed by
Tenant in the Second Floor Premises and the allowance provided to Tenant in respect thereof, shall
be as set forth in the Tenant Improvement Exhibit attached hereto as Exhibit “C-I”.
Exhibit “C-I” attached to this Amendment is hereby incorporated into the Lease and made a
part thereof.

6

 

     9. Right of First Refusal on Additional Second Floor Premises. The following is
hereby added at the end of Paragraph 2 of the Lease as a new subparagraph (e) thereof:

(e) Right of First Refusal on Additional Second Floor Premises.

(i) ROFR. Landlord hereby grants to Tenant a right of first refusal,
on the terms and conditions hereinafter set forth (the “ROFR”). For (x) the
first two (2) times within the Initial Term ROFR Periods (as defined below)
that Landlord has received a letter of intent or similar acknowledged
proposal for the lease of premises located on the second floor of the
Building (the “Letter of Intent”), and (y) the first two (2) times after June
30, 2018 that Landlord has received a Letter of Intent, Landlord shall give
Tenant written notice accompanied by a copy of the Letter of Intent (from
which Landlord may redact information identifying the other party). The term
“Initial Term ROFR Periods” shall mean the period from July 1, 2007 to June
30, 2011 and the period from July 1, 2014 to June 30, 2018, the parties
acknowledging that the ROFR shall not be available in respect of any Letter
of Intent received within the period from July 1, 2011 to June 30, 2014, and
that the ROFR shall be available no more than two (2) times prior to June 30,
2014. Tenant may, at its option, elect to lease the premises described in
the Letter of Intent (the “ROFR Premises”) upon all of the terms and
conditions set forth in the Letter of Intent (except as otherwise expressly
provided below), by written notice to Landlord given not later than five (5)
business days after Landlord’s notice is given (“Tenant’s Election Period”),
time being of the essence. If Tenant does not timely make such election,
Landlord may market the ROFR Premises and enter into a lease thereof to a
third party tenant, except that prior to a lease thereof at a rent more than
ninety percent (90%) lower than stated in Landlord’s notice to Tenant,
Landlord shall again give Tenant notice of Tenant’s right to make the
election herein provided. After Landlord shall have provided Tenant with
notice of Tenant’s rights under this Paragraph on two (2) occasions during
the Term (with any re-submission in order to comply with the 90% requirement
stated above constituting part of a single such occasion), the ROFR shall
thereupon terminate in its entirety, and Landlord may thereafter offer and
lease premises on the second floor of the Building without notice to Tenant
and free of any right of Tenant. If Tenant has validly exercised a ROFR in
accordance with the terms hereof, Landlord and Tenant shall enter into a
written amendment to this Lease confirming the terms, conditions and
provisions applicable to Tenant’s lease of the ROFR Premises. Tenant
acknowledges and agrees that the ROFR will not apply to any renewal or
extension of the term of an existing tenant with premises on the second floor
of the Building or to any expansion, first offer or first refusal rights
contained in existing leases in the Building, and that the ROFR shall not be
available in respect of any Letter of Intent which provides for the delivery
of the second floor premises within the last three years of the Term, as the
same may have been extended pursuant hereto. Tenant may exercise its ROFR,
and an exercise thereof shall be effective, only if: (i) at the time of
Tenant’s exercise of said right and, at Landlord’s option, on the date of
delivery of the ROFR Premises, Tenant is not in monetary default under this
Lease (or such default is cured prior to the end of Tenant’s Election Period)
and Tenant is not otherwise in default hereunder beyond written notice from
Landlord and expiration of the applicable cure period herein provided; and
(ii) inasmuch as said right is intended only for the benefit of the original
Tenant named in this Lease, Tenant has not assigned or otherwise transferred
this Lease or sublet more than twenty-five percent (25%) of the Rentable
Square Feet of the Premises, excluding any and all Permitted Transfers.

(ii) ROFR Term. Notwithstanding the provisions of the Letter of
Intent, any premises leased by Tenant pursuant to an exercise of the ROFR
shall added to the Premises covered by and leased under

7

 

this Lease for the remaining Term and any Extension Options exercised by
Tenant.

(iii) Minimum Term. Notwithstanding anything to the contrary in this
Paragraph, in no event shall Tenant have any ROFR unless the remaining Term
of this Lease (including any Extension Option that Tenant has exercised) is
at least thirty-six (36) full calendar months following the date of the
anticipated availability of the ROFR Premises.

(iv) Base Rent. If the lease term described in the Letter of Intent
continues beyond the Term of this Lease as in effect upon the anticipated
availability date of the ROFR Premises (including any Extension Option
theretofore exercised), the Monthly Base Rent under this Lease applicable to
the ROFR Premises shall follow the schedule of the base rent set forth in the
Letter of Intent until the end of the Term (and if an Extension Option is
thereafter exercised, the fair market rent for the entire Premises, including
the ROFR Premises shall be determined as provided in Paragraph 41 for the
period of the Extension Option). If the lease term as specified in the
Letter of Intent ends prior to the Term of this Lease as in effect upon the
anticipated availability date of the ROFR Premises (including any Extension
Option theretofore exercised), the Monthly Base Rent under this Lease
applicable to the ROFR Premises shall (A) for period that the Letter of
Intent specifies a schedule of base rent, follow the base rent amounts so
scheduled, and (B) thereafter, the Monthly Base Rent shall be increased by
three percent (3%) per annum, effective as of the day next following the end
of the rent schedule set forth in the Letter of Intent and each anniversary
of such day.

(v) Economic Concessions. In the event that a Letter of Intent
provides for any free rent period, construction allowance, Landlord
commitment to perform tenant improvements at Landlord’s expense, or other
economic or business concessions (“Tenant Concessions”): (A) if the lease
term as specified in the Letter of Intent ends prior to the Term of this
Lease as in effect upon the anticipated availability date of the ROFR
Premises (including any Extension Option theretofore exercised), the Tenant
Concessions shall be available in respect of the ROFR Premises for the period
of the lease term described in the Letter of Intent (but shall not continue
thereafter), and (B) if the lease term as specified in the Letter of Intent
continues beyond the Term of this Lease as in effect upon the anticipated
availability date of the ROFR Premises (including any Extension Option
theretofore exercised), Tenant shall be entitled to receive the benefit of
the Tenant Concessions in the proportion that the remaining Term of this
Lease as then in effect bears to the lease term as specified in the Letter of
Intent.

     10. Right to Terminate. The following is hereby added to Paragraph 3 of the Lease:

Right to Terminate. Tenant shall have a one-time right to terminate this
Lease, effective as of June 30, 2015 (the “Termination Date”), upon written
notice given to Landlord not later than June 30, 2014. If Tenant exercises
such right, Tenant shall pay to Landlord, not later than the Termination
Date, an amount equal to sum of the following:

     (a) $425,317.00 in respect of the Premises covered by this Lease as
described in Paragraph 1(g) hereof as in effect pursuant to Section 1 of the
Second Amendment.

     (b) If Tenant shall have made an election to take any ROFR Premises in
accordance with the provisions of Paragraph 2(e) of this Lease (as added by
Section 9 of the Second Amendment), the sum of the following in respect of
each ROFR Premises: (i) three months of the amount of the Monthly Base Rent
attributable to the ROFR Premises; (ii) the remaining unamortized amount of
any brokerage

8

 

commissions paid by Landlord in connection with the ROFR Premises,
determined as of the Termination Date on a straight line basis, with interest
at eight percent (8%) per annum, over the period beginning upon the date
Tenant commenced to pay base rent in respect of the ROFR Premises and ending
upon the Expiration Date as in effect prior to exercise of such termination
right (the “ROFR Amortization”); and (iii) the remaining unamortized amount
of any Tenant Concessions (as defined in Paragraph 2(e) of this Lease, as
added by Section 9 of the Second Amendment) in respect of the ROFR Premises,
determined in accordance with the ROFR Amortization.

If Tenant exercises the termination right set forth in this paragraph, the
Term of the Lease shall end as of the Termination Date, in the same manner as
if the same were the Expiration Date otherwise provided pursuant to this
Lease.

Tenant acknowledges that it has no further right pursuant to the provisions of Section 8 of
the First Amendment, and such Section is hereby deleted in its entirety.

     11. Audit Right. The following is hereby added as a new subparagraph (e) to Paragraph
6 of the Lease:

(e) Audit by Tenant. Tenant shall be entitled to audit Landlord’s records
relating to Operating Expenses, on not less than twenty (20) days prior
notice to Landlord. Upon completion of the audit, Tenant shall forward to
Landlord a copy of the audit report and all accompanying data and workpapers
available to Tenant relating thereto, and any overcharge or underpayment
disclosed by the audit shall be promptly reconciled. If it is determined by
reason of the audit that Landlord has overcharged Tenant by more than five
percent (5%), Landlord shall pay Tenant’s reasonable cost of such audit. Any
audit by Tenant of Operating Expenses shall be made upon and subject to the
following terms and conditions: (1) the audit shall be conducted in
accordance with generally accepted rules of auditing practice, not more
frequently than once per year, at the regular accounting office for the
Project; (2) Landlord may defer the audit for up to forty-five days while
Landlord is closing its books, is preparing financial statements or tax
returns, or for other reasons is anticipating unusual demands on its
accounting office and personnel; (3) the audit shall be done by an
independent certified accountant experienced, and in no event shall the
auditor or any other person directly or indirectly involved in the audit
(collectively with the auditor, an “Auditor-Related Person”) be compensated
pursuant to a commission or other arrangement pursuant to which the nature or
extent of fees or other compensation is dependent upon the results of the
audit; (4) in no event shall any Auditor-Related Person solicit or otherwise
communicate to any other tenant or occupant of the Project in any manner
which discloses that Tenant has a right to audit the records of Landlord, or
that Tenant or the Auditor-Related Person is planning to or has audited
Landlord’s records; (5) Tenant and its auditor shall not be entitled to
review Landlord’s financial statements or tax returns or any leases,
operating agreements, reciprocal easement agreements or other agreements with
tenants or occupants of the Project and shall limit its audit to those items
that are specifically related to Operating Expenses; (6) Tenant and each
Auditor-Related Person shall keep confidential the existence and nature of
the audit provisions of this Lease and shall not disclose that any audit
hereunder is to be or has been conducted or the results thereof, except to
the extent that disclosure in confidence to its accountants is necessary in
connection with the performance of an audit, and except as may be required by
law after giving Landlord written notice and an opportunity to evaluate the
disclosure and challenges the same if desired; and (7) at Landlord’s request,
prior to commencement of the audit, Tenant and each Auditor-Related Person
shall sign and deliver to Landlord written assurances of compliance with the
matters set forth above. Landlord shall maintain

9

 

records of the Operating Expenses in any year for two (2) years following the
date of the annual statement to Tenant of Operating Expenses for such year.
Except in the event of knowing and intentional fraud by Landlord, failure on
the part of Tenant to object to a statement of Operating Expenses within one
year after Tenant’s receipt thereof shall be conclusively deemed Tenant’s
approval of such statement.

     12. Exclusive.

     (a) The last sentence of Paragraph 8(a) of the Lease is hereby amended to read in its entirety
as follows: “Except as expressly provided in subparagraph (d) of this Paragraph, nothing in this
Lease will be deemed to give Tenant any exclusive right to such use in the Building or the
Project.”

     (b) Paragraph 8(d) of the Lease is hereby amended to read in its entirety as follows:

(d) Exclusive Use. Provided and for so long as the Tenant originally named
herein or a Permitted Transferee is operating a Commercial or Retail Branch
Bank in the First Floor Premises, Landlord shall not (i) lease any of the
space remaining on the ground floor of the Building to any person or entity
for purposes of operating a Commercial or Retail Branch Bank, or (ii) lease
any space in the Building to any person or entity pursuant to which the
tenant is permitted to install and operate in the Building Common Areas an
automated teller machine. For purposes of this subparagraph, a “Commercial
or Retail Branch Bank” shall mean an office of a retail or commercial bank
that keeps its doors open to the public and provides a full range services to
regular customers without appointment or prior arrangement, employing a staff
of on-site tellers and customer representatives and dispensing cash other
than exclusively through automated means.

     13. Holding Over. Subparagraph (b) of Paragraph 11 of the Lease is hereby amended to
read in its entirety as follows:

If Tenant shall, with the prior written consent of Landlord, remain in
possession of the Premises following the expiration or earlier termination of
the Term, then the Monthly Base Rent payable by Tenant hereunder shall be
increased to equal the greater of (i) one hundred fifty percent (150%) of the
Monthly Base Rent in effect under this Lease immediately Prior to such
holdover, or (ii) the then currently scheduled rental rate for comparable
space in the Building, in either event prorated on a daily basis. Such rent
shall be computed by Landlord and paid by Tenant on a monthly basis (without
proration or reduction if the holdover period is a partial month) and shall
be payable on the first day of such holdover period and the first day of each
calendar month thereafter during such holdover period until the Premises have
been vacated. Any holding over by Tenant (or anyone claiming through Tenant)
without the prior written consent of Landlord shall be a tenancy at
sufferance and Landlord shall have the right to immediately recover
possession of the Premises. In no event shall any holdover be deemed a
permitted extension or renewal of the Lease Term, and nothing contained
herein shall be construed to constitute Landlord’s consent to any holdover or
to give Tenant any right with respect thereto.

     14. Personal Property. Subparagraph (g) of Paragraph 13 is hereby amended to read in
its entirely as follows:

(g) Personal Property. All articles of Tenant’s personal property in the
Premises, including (without limitation) Tenant’s business and trade
fixtures, vaults, safes, safe deposit boxes, furniture, movable partitions,
equipment (such as telephones, copy machines, computer terminals,
refrigerators and facsimile machines) and telephone, computer and other
communications and data systems and cabling serving the Premises (whenever
and by

10

 

whomsoever installed but excluding Building systems, “Tenant’s Personal
Property”) will be and remain the property of Tenant. Tenant, at its sole
cost and expense, agrees to remove Tenant’s Personal Property on or before
the expiration or earlier termination of the Lease and repair any damage to
the Premises caused by such removal (or, at Landlord’s option, Tenant agrees
to pay to Landlord all of Landlord’s costs of such removal and repair).

     15. Removal by Tenant. Subparagraph (h) of Paragraph 13 is hereby amended to read in
its entirely as follows:

(h) Failure to Remove. If Tenant fails to remove by the expiration or
earlier termination of this Lease any of Tenant’s Personal Property or any
Alterations or Tenant’s Work identified by Landlord for removal, Landlord
may, at its option, treat such failure as a hold-over pursuant to
Subparagraph 11(b) above, and/or Landlord may (without liability to Tenant
for loss thereof) treat such personal property and/or Tenant’s Work as
abandoned and, at Tenant’s sole cost and expense, and in addition to
Landlord’s other rights and remedies under the Lease, at law or in equity:
(a) remove and store such items; and/or (b) upon ten (10) days prior notice
to Tenant, sell, discard or otherwise dispose of all or any such items at
private or public sale for such price as Landlord may obtain or by other
commercially reasonable means. Tenant shall be liable for all costs of
disposition of Tenant’s abandoned property and Landlord shall have no
liability to Tenant with respect to any such abandoned property. Landlord
agrees to apply the net proceeds of any sale of any such property to any
amounts due to Landlord under the Lease from Tenant (including Landlord’s
attorneys’ fees and other costs incurred in the removal, storage and/or sale
of such items), with any remainder to be paid to Tenant.

     16. Utility Interruption. The following is hereby added to Paragraph 17 of the Lease
at the end thereof:

Notwithstanding the foregoing, if any services or utilities required to be
provided by Landlord under this Lease are interrupted by reason of the gross
negligence or willful misconduct of Landlord and the Premises are rendered
untenantable for more than three (3) business days as a result, the rent and
any other sums payable by Tenant shall abate for the period that the Premises
remains untenantable.

     17. Time to Cure Monetary Defaults. Subparagraph (a)(ii) of Paragraph 22 is hereby
amended by deleting “three (3) days” and substituting “five (5) business days” in place thereof.

     18. Cure of Certain Defaults. Subparagraph (a)(iii) of Paragraph 22 is hereby amended
by deleting the words “with Landlord’s concurrence” in the next to last line thereof.

     19. Late Payment Charge. Subparagraph (f) of Paragraph 22 is hereby amended by adding
the following at the end thereof: “Notwithstanding the foregoing, Tenant shall not be required to
pay such late charge for the first such late payment in any calendar year, so long as the payment
is made not later than ten (10) days after the due date therefor.”

     20. Assignment.

     (a) The last sentence of subparagraph (b) of Paragraph 24 of the Lease is hereby amended to
read as follows:

Notwithstanding the foregoing, the immediately preceding sentence will not
apply to any transfer of stock of Tenant if Tenant is a corporation the stock
of which is traded on a recognized securities exchange or over-the-counter
market both prior to and following such transfer.

11

 

     (b) Subparagraph (c) of Paragraph 24 of the Lease is hereby amended to read in its entirety as
follows:

(c) Permitted Controlled Transfer. Tenant, with notice to Landlord, but
without Landlord’s consent, may assign this Lease or sublease any portion of
the Premises (“Permitted Transfer”) to: (i) any entity (“Merged Entity”)
resulting from any merger or consolidation with Tenant; (ii) any subsidiary
of a Merged Entity, any parent company of any Merged Entity, or any
subsidiary of the parent company of any Merged Entity or any subsidiary of
any Merged Entity, provided that any subsequent transfer of ownership
resulting in such a subsidiary or parent no longer being owned, directly or
indirectly, by Alliance Bank or the successors to all or substantially all of
the assets thereof (“Alliance or its Successor”) shall require Landlord’s
consent as herein provided; (iii) any entity succeeding to the business and
assets of Alliance or its Successor; or (iv) any entity controlling,
controlled by, or under common control with Tenant, provided that any
subsequent transfer of ownership resulting in such an entity no longer being
owned, directly or indirectly, by Alliance Bank or its Successor shall
require Landlord’s consent as herein provided. The transferee of a Permitted
Transfer is referred to herein as a “Permitted Transferee.” The provisions
of subparagraph (h) of this Paragraph 24 shall not apply to a Permitted
Transfer.

     (c) Subparagraph (d) of Paragraph 24 of the Lease is hereby amended by adding the following at
the beginning thereof: “Except with regard to any Permitted Transfer (which shall be governed by
subparagraph (c) of this Paragraph),”.

     (d) Subparagraph (g) of Paragraph 24 of the Lease is hereby amended by adding the following at
the end thereof:

Notwithstanding the foregoing, Landlord will not unreasonably withhold its
approval of commercially reasonable provisions to be included in Landlord’s
written consent to a sublease pursuant to which Tenant shall be entitled to
collect and retain sublease rents for so long as Tenant is not in monetary
default under the Lease and Tenant is not otherwise in default thereunder
beyond applicable notice and cure periods.

     (e) Subparagraph (h) of Paragraph 24 of the Lease is hereby amended by (i) deleting the words
“due and payable” and replacing them with the word “paid” in line 4, (ii) inserting the words “if
Tenant is in default beyond any applicable notice and cure period” after the words “consideration
directly to Landlord” in line 6, and (iii) inserting the word “first” before the words “deduct
commercially reasonable third party” in line 14.

     (f) The first sentence of subparagraph (j) of Paragraph 24 of the Lease is hereby amended to
read in entirety as follows:

If Tenant effects a Transfer or requests the consent of Landlord to any
Transfer (whether or not such Transfer is consummated), then, upon demand,
Tenant agrees to pay Landlord a non-refundable administrative fee of Two
Hundred Fifty Dollars ($250.00) plus any reasonable attorneys’ fees and
paralegal fees incurred by Landlord in connection with such Transfer or
request for consent (whether attributable to Landlord’s in-house attorneys or
paralegals or otherwise) not to exceed Fifteen Hundred Dollars $1,500.00.

     21. Signage.

     (a) Landlord acknowledges that Tenant desires to change the location of the existing Eyebrow
Sign (as defined in Paragraph 34 of the Lease) so that it faces Main Street, and Landlord agrees
that Tenant may do so, subject to Landlord’s prior reasonable approval and the other requirements
set forth in Paragraph 34.

     (b) Tenant may maintain other existing signage for the First Floor Premises, and Tenant may,
at its expense and upon and subject to the terms and conditions of

12

 

Paragraph 34, maintain lobby
directory and suite identification signage in accordance
with the standard of the Building, all upon and subject to the terms and conditions set forth
in Paragraph 34.

     (c) In the event that Tenant occupies the entire second floor of the Building, then subject to
Landlord’s approval, Tenant, at Tenant’s sole cost and expense, shall be entitled to install
identification signage, including Tenant’s corporate name and logo, in the elevator lobby of the
floor occupied by Tenant, upon and subject to the terms and conditions set forth in Paragraph 34.

     22. Disclosure. Subparagraph (j) of Paragraph 38 of the Lease is hereby amended by
adding the following at the beginning thereof: “In no event shall this provision be construed to
prohibit disclosures if and to the extent required by applicable securities laws.”

     23. Options to Extend. In order to provide Tenant with two (2) Extension Options
following the expiration of the Term of the Lease as provided pursuant to this Amendment, the
provisions of the Addendum to Lease attached to the Lease are amended as follows:

     (a) Paragraph 41(a) is hereby amended as follows: (a) in line 2, by deleting the phrase “one
(1) option (the ‘Extension Option’)” and substituting in place thereof the phrase “two (2) options
(each, an ‘Extension Option’)”; (b) in lines 3 and 4, by deleting the phrase “for one (1)
additional period of five (5) years (the ‘Option Term’)” and substituting in place thereof the
phrase “each for an additional period of five (5) years (each, an ‘Option Term’)”; (c) in line 10,
by adding the phase “beyond the second Option Term herein provided” after the word “extend”; and
(d) at the end thereof, by adding the following: “The first Extension Option shall be for the
period beginning upon July 1, 2018 and continuing through June 30, 2123, and if the first Extension
Option is exercised, the second Extension Option shall be for the period beginning upon July 1,
2023 and continuing through June 30, 2128.”

     (b) Paragraph 41(b) is hereby amended to read in its entirety as follows: “Any Extension
Option must be exercised, if at all, by written notice (“Extension Notice”) delivered by Tenant to
Landlord no later than the date which is twelve (12) months prior to the expiration of the Term of
this Lease as in effect prior to exercise thereof.”

     (c) Paragraph 41(e)(viii) is hereby amended by substituting the phrase “prior to the
expiration of the Term of this Lease as in effect prior to exercise of the Extension Option,” in
line 2 in place of the phrase “prior to the end of the initial Term of the Lease.”

     24. Exercise of Options. Subparagraph (b) of Paragraph 42 of the Lease is hereby
revised to read in its entirety as follows:

(b) Each Option is personal to the original Tenant executing this Lease and
any assignee of the entire interest of Tenant herein pursuant to a Permitted
Transfer and may be exercised only (i) by the original Tenant or such a
Permitted Transferee and (ii) only provided, and on condition that, the
original Tenant and any Permitted Transferees shall be in direct occupancy
and use (and shall not have subleased to a non-Permitted Transferee subtenant
or subtenants) of at least seventy-five percent (75%) of the Rentable Square
Feet of the Premises. No Option may be exercised or be assigned, voluntarily
or involuntarily, by any person or entity other than the original Tenant
executing this Lease or an assignee of the entire interest of Tenant herein
pursuant to a Permitted Transfer. No Option is assignable separate and apart
from this Lease, nor may any Option be separated from this Lease in any
manner, either by reservation or otherwise.

     25. Operating Expenses.

     (a) Subparagraph (c) of Paragraph 1 of Exhibit “E” to the Lease is hereby amended to read as
follows:

costs of insurance, which may include deductible amount payable in respect of
casualties and losses in an amount not greater than normal and customary
deductibles, provided that amounts included

13

 

in Operating Expenses if Landlord
self-insures shall not be greater
than the premiums that would have been paid if Landlord had maintained
insurance with an unaffiliated insurance carrier instead of self-insuring.

     (b) Subparagraphs (f)(ii), (iii) and (iv) of Paragraph 1 of Exhibit “E” to the Lease are
hereby amended to read as follows:

(ii) wages and salaries (and payroll taxes and similar governmental charges
related thereto) of employees used in the management, operation and
maintenance of the Building, but not for any employees above the rank and
level of the property manager for the Building, (iii) Building management
office rental, supplies, equipment and related operating expenses, provided
that the office rent shall be at fair market value and prorated amongst any
other buildings that use the same office as the management office, and (iv) a
management/administrative fee determined as a percentage of the annual gross
revenues of the Building and an administrative fee for the management of the
Development Common Area determined as a percentage of Project Common Area
Operating Expenses, not to exceed 4% of the gross rental income of the
Building

     26. HVAC Charges. The following is hereby added at the end of paragraph 2 of Exhibit
“F” to the Lease: “If Tenant requires air conditioning or heat beyond the hours specified above,
then Landlord will furnish the same provided Tenant gives Landlord reasonable advance notice of
such requirement. Tenant shall pay for such extra service in accordance with Landlord’s then
current schedule (which is currently at the hourly rate $55 per hour with a two (2) hour usage
minimum and which shall not, in any event, exceed $75 per hour for the period continuing through
June 30, 2018).

     27. Janitorial Service. The following is hereby added as the second sentence of
paragraph 5 of Exhibit “F” to the Lease: “Landlord will provide such janitor service for the
Premises and provide janitor service for the Common Areas in a manner consistent with comparable
Class A buildings in the vicinity of the Building five days per week, exclusive of holidays.”

     28. Brokers. Tenant has been represented in connection with this Amendment by
CresaPartners Corporate Real Estate Service Advisors (“Tenant’s Broker”), and Landlord has been
represented in connection herewith by Voit Commercial (“Landlord’s Broker”). Landlord shall pay a
brokerage commission to Landlord’s Broker pursuant to a separate agreement, and Tenant’s Broker
shall look to Landlord’s Broker for its commission. Each party represents and warrants that it has
not engaged or dealt with any other broker or other representative and agrees to indemnify, defend
and hold harmless the other from and against any and all claims for any brokerage commission,
finder’s fee or other compensation arising by reason of such party’s breach of the foregoing
warranty.

     29. No Other Modifications. Except as modified in this Amendment, all other terms and
conditions of the Lease shall remain unchanged and in full force and effect. This Amendment may be
executed in counterparts, each of which shall be deemed an original, but all of which, together,
shall constitute one in the same Amendment. To the extent of a conflict between the terms of the
Lease and this Amendment, this Amendment shall prevail. In provisions added to the Lease pursuant
to this Amendment, references to “Second Amendment” shall mean and be construed as references to
this Amendment.

     30. No Deed of Trust. Landlord represents and warrants that, as of the date of this
Amendment, there is no loan secured by a mortgage or deed of trust on the Building and the land on
which the same is located.

14

 

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

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:

	 	TENANT:
	 
	 	 	 	 	 	 	 	 	 	 
	PIEDMONT OPERATING PARTNERSHIP, L.P.,

a Delaware limited partnership	 	 	 	ALLIANCE BANK,

a California banking corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 
	 	 By:	 	 	 	 
	Name:
	 	 	 	 	 	Name:	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

15

 

EXHIBIT A-III

Second Floor Premises

 

 

EXHIBIT A-IV

Location of Reserved Customer Bank and ATM Parking Spaces

 

 

EXHIBIT C-I

Tenant Improvement Exhibit

     This TENANT IMPROVEMENT EXHIBIT sets forth the obligations of the parties with regard to the
remodeling of the Premises to be undertaken by Tenant pursuant to the Amendment No. 2 to Office
Building Lease relating to the Lease, including the tenant improvements to be constructed by Tenant
in the Second Floor Premises.

     1. Second Floor Premises Delivery Date and Condition.

     (a) Delivery Date. Landlord shall deliver possession of the Second Floor Premises to
Tenant upon the last to occur of the following (the “Second Floor Premises Delivery Date”): (a)
the full execution and delivery of the Lease Amendment to which this Exhibit is attached (the
“Amendment”); (b) the submittal of all monies required per the Amendment; and (c) the submittal of
all certificates of insurance required pursuant to the Amendment and the Lease. Following such
delivery, Tenant may perform the work of constructing tenant improvements, installing furniture,
fixtures, trade fixtures, personal property, telecommunications, cabling and equipment, and in
other respects performing Tenant’s Work (as defined below).

     (b) Condition. Landlord shall deliver the Second Floor Premises to Tenant broom clean
and free of all existing furniture, movable trade fixtures, movable trade equipment and debris.
Tenant’s acceptance of the Second Floor Premises pursuant to Section 3 of this Exhibit shall not
release or discharge Landlord from any of its obligations to maintain and repair the Building and
the Premises in accordance with the provisions of Paragraph 14(a) of the Lease or the other
obligations of Landlord expressly set forth in the Lease.

     2. Tenant’s Work.

     (a) Scope of Tenant’s Work. Tenant shall cause to be designed and constructed in
compliance with applicable laws and regulations work of general construction consisting of
improvements within the Premises (“Tenant’s Work”) in accordance with this Exhibit and the terms of
the Lease. In no event shall any of Tenant’s Work: (i) affect any area outside the Premises
(other than signage as expressly herein permitted); (ii) affect the Building’s structure,
equipment, services or systems, or the proper functioning thereof, or Landlord’s access thereto;
(iii) affect the outside appearance, character or use of the Building or the Building Common Areas
(other than signage as so permitted); (iv) in the reasonable opinion of Landlord, lessen the value
of the Building; (v) violate or require a change in any occupancy certificate applicable to the
Premises (other than as permitted by any new occupancy certificate obtained by Tenant in compliance
herewith); or (iv) fail to comply with standard criteria for the Building (other than as expressly
permitted in this Exhibit).

     (b) Plan Approval. Before proceeding with any Tenant’s Work, Tenant must first obtain
Landlord’s written approval of the plans, specifications and working drawings for Tenant’s Work,
which approval Landlord will not unreasonably withhold or delay; provided, however, that in no
event shall Landlord be required to approve any of the following: (i) any design that negatively
impacts the Building systems; (ii) any design that negatively impacts the Building structure; or
(iii) any design that negatively impacts the appearance of the Building from the exterior or the
the ground floor lobby. Landlord’s approval of plans, specifications and/or working drawings for
Tenant’s Work will not create any responsibility or liability on the part of Landlord for their
completeness, design sufficiency, or compliance with applicable permits, laws, rules and
regulations of governmental agencies or authorities. Landlord shall respond to any submission of
plans, specifications and working drawings within seven (7) business days following Landlord’s
receipt thereof. If Landlord fails to respond within such period, Tenant may give written notice
to Landlord, setting forth a specific reference to this subsection, that Landlord’s failure to
respond within five (5) business days after receipt of such written notice shall constitute
approval, and the plans, specifications or working drawings shall be deemed approved if Landlord
fails to respond with such period. In the event that a representative of Landlord is required by
the City of Irvine, or any of its departments, or any other governmental agency having jurisdiction
over construction in the Building to acknowledge or consent to any building permit application of
Tenant, Landlord agrees to cause its representative to do so within five (5) business days
following receipt of Tenant’s written request therefor. If Landlord fails to acknowledge or
consent within such period, Tenant may give written notice to Landlord, setting forth a specific
reference to this subsection, that Landlord’s failure to respond within three (3) business days
after receipt of such written notice shall constitute a delay that may defer the

1

 

Second Floor Rent Commencement Date under Section 6 below, and the failure of Landlord to so
acknowledge or consent within such three (3) business day period may give rise to such a deferral.
The provisions of Paragraphs 20 and 21 of the Lease, including the rent abatement provisions set
forth therein, shall apply in respect of any casualty or eminent domain taking involving the
Premises, including during the period of performance of Tenant’s Work. In no event shall the
failure of Tenant to timely obtain a building permit or other required governmental approvals for
Tenant’s Work result in any deferral in rent commencement or any abatement of the rents and charges
payable under the Lease, other than as expressly provided in Section 6 below.

     (c) Fees. Tenant agrees to reimburse Landlord, as additional rent, for the actual,
out-of-pocket fees and expenses paid by Landlord to its architects and engineers (but not
Landlord’s “in-house” personnel) for the review of the plans and specifications for Tenant’s Work,
within thirty (30) days after Tenant’s receipt of an invoice from Landlord; provided that with
regard to each review of plans and specifications for routine leasehold improvement work (but not
for work affecting the Building structure or systems or other major or non-routine work), the
maximum charge to Tenant shall be $3,000. In no event shall Tenant be required to pay Landlord a
supervision or construction management fee or any other charges for profit, overhead or supervision
in connection with the performance of Tenant’s Work, nor shall Tenant be charged a fee for use of
parking, elevators, docks, and utilities (other than any after-hours HVAC service) attributable to
performance of Tenant’s Work and move-in.

     (d) Contractors. Tenant’s Work may be made or installed only by contractors and
subcontractors which have been approved by Landlord, which approval Landlord will not unreasonably
withhold or delay, except that Tenant shall not be required to obtain Landlord’s approval of a
subcontractor whose work does not affect Building systems or structures and who does not provide
services or materials in an amount in excess of $25,000. Landlord shall respond to any request for
approval of a contractor within five (5) business days following Landlord’s receipt thereof. If
Landlord fails to respond within such period, Tenant may give written notice to Landlord, setting
forth a specific reference to this subsection, that Landlord’s failure to respond within three (3)
business days after receipt of such written notice shall constitute approval, and the contractor
shall be deemed approved if Landlord fails to respond with such period. With regard to
contractors, subcontractors and engineers performing work in respect of mechanical, electrical,
plumbing and sprinkler, and life safety, energy management and other Building systems or
structures, Tenant shall use such contractors, subcontractors or engineers as Landlord may
designate, provided that Tenant shall not be required to pay more than a competitive price for work
performed by a designated contractor, subcontractor or engineer. Tenant agrees to provide Landlord
with ten (10) days prior written notice and Tenant’s contractors must obtain and maintain, on
behalf of Tenant and at Tenant’s sole cost and expense, all necessary governmental permits and
approvals for the commencement and completion of Tenant’s Work. Landlord shall not require that
Tenant or its contractors provide a completion and lien indemnity bond in connection with Tenant’s
Work. Throughout the performance of any Tenant’s Work, Tenant agrees to obtain, or cause its
contractors to obtain, workers compensation insurance and general liability insurance in compliance
with the provisions of Paragraph 19 of the Lease.

     (e) Architect; Test Fit. Landlord approves the engagement by Tenant of Interior
Architects to prepare preliminary space plans and working drawings, including in connection with
the test fit work heretofore performed for Tenant. The reasonable cost of such services shall be
paid as part of the Tenant Improvement Allowance, upon and subject to the terms and conditions set
forth herein.

     (f) Bidding Tenant’s Work. Tenant shall have the right to competitively bid Tenant’s
Work with mutually approved contractors and select the contractor, subject to the provisions of
subsection (d) above. Tenant shall enter into a contract with the successful bidder, as reasonably
determined by Tenant, to construct Tenant’s Work. Subject to Landlord’s reasonable approval,
Tenant shall have the right to select high quality materials that are not “building standard”
materials if the design selection so dictates. Landlord shall respond to any request for approval
of non-building standard materials within five (5) business days following Landlord’s receipt
thereof. If Landlord fails to respond within such period, Tenant may give written notice to
Landlord, setting forth a specific reference to this subsection, that Landlord’s failure to respond
within three (3) business days after receipt of such written notice shall constitute approval, and
the non-building standard materials shall be deemed approved if Landlord fails to respond with such
period. Any such approved or deemed approved non-building standard materials may be paid from the
Tenant Improvement Allowance. Tenant may

2

 

engage its own project manager, whose fees may be paid from the Tenant Improvement Allowance,
upon and subject to the terms and conditions set forth herein, provided that in no event shall more
than 5% of the Tenant Allowance be payable in respect of the such fees.

     (g) Manner of Performance. All Tenant’s Work must be performed: (i) in accordance
with the approved plans, specifications and working drawings; (ii) in a lien-free and first-class
and workmanlike manner; (iii) in compliance with all applicable permits, laws, statues, ordinances,
rules, regulations, orders and ruling now or hereafter in effect and imposed by any governmental
agencies and authorities which assert jurisdiction; (iv) in such a manner so as not to unreasonably
interfere with the occupancy of any other tenant in the Building (it being acknowledged by
Landlord that, subject to Tenant’s compliance with reasonable rules and regulations as described
below, Tenant shall be permitted to perform activities that are normal attributes of construction
of leasehold improvements in commercial office space), nor impose any additional expense upon nor
delay Landlord in the maintenance and operation of the Building; and (v) at such times, in such
manner, and subject to such rules and regulations as Landlord may from time to time reasonably
designate, including (without limitation) reasonable provisions regarding the times at which Tenant
may perform work resulting in noise, vibration, odors or other sensations perceptible in the
Building.

     (h) Ownership. All Tenant’s Work (which shall not, in any event, include “Tenant’s
Personal Property” as defined below) will become the property of Landlord and will remain upon and
be surrendered with the Premises at the end of the Term of the Lease; provided, however, Landlord
may, by written notice delivered to Tenant concurrently with Landlord’s approval of the final
working drawings for any Tenant’s Work, identify that Tenant’s Work which Landlord will require
Tenant to remove at the end of the Term of the Lease. If Landlord requires Tenant to remove any
Tenant’s Work, Tenant, at its sole cost and expense, agrees to remove the identified Tenant’s Work
on or before the expiration or earlier termination of the Lease and repair any damage to the
Premises caused by such removal (or, at Landlord’s option, Tenant agrees to pay to Landlord all of
Landlord’s costs of such removal and repair). Notwithstanding anything in the Lease or this
Exhibit to the contrary, Tenant shall not be required to remove permanently affixed millwork
(including for teller lines) installed in accordance with plans approved or deemed approved by
Landlord at the termination of this Lease.

     (i) Labor Harmony. Notwithstanding the provisions of Paragraph 40 of the Lease,
Tenant shall not be required to use union labor, provided and on condition that all work performed
by Tenant or Tenant’s Contractor shall be performed in a manner so as to avoid any labor dispute
which results in a stoppage or impairment of work, deliveries or any other service in the Building.
If there shall be any such stoppage or impairments as the result of any such labor dispute, Tenant
shall immediately, but in no event later than three (3) days following written notice from
Landlord, undertake such action as may be necessary to eliminate such dispute or potential dispute,
including, without limitation, (i) removing all disputants from the job site until such time as the
labor dispute no longer exists, (ii) seeking a temporary restraining order and other injunctive
relief with regard to illegal union activities or a breach of contract between Tenant and its
contractors, and (iii) filing appropriate unfair labor practice charges. Tenant shall be liable to
Landlord for any costs incurred by Landlord as a result of such labor dispute.

     3. AS-IS Condition. Subject to the obligations of Landlord set forth in Section 1(b)
of this Exhibit, Tenant shall accept the entire Premises, including the Second Floor Premises, in
its AS-IS condition. Subject to the obligations of Landlord to make available the amount of the
Tenant Allowance as provided below, Landlord shall have no obligation to perform at Landlord’s
expense, or pay or reimburse Tenant for the cost of, any modifications or alterations to the
Building or other improvements in or to the Premises, notwithstanding anything to the contrary
contained in the Lease or any Exhibit thereto. The parties acknowledge that the Tenant Allowance
originally provided pursuant to the Lease has been fully utilized and paid, and Landlord shall not
be required to pay or reimburse any amount to Tenant in respect thereof. Tenant’s acceptance of
the Second Floor Premises pursuant this Section shall not release or discharge Landlord from any of
its obligations to maintain and repair the Building and the Premises in accordance with the
provisions of Paragraph 14(a) of the Lease or the other obligations of Landlord expressly set forth
in the Lease. Notwithstanding the foregoing, Landlord shall, at Tenant’s request, remove any
existing telephone and computer cabling within and exclusively serving in the Second Floor
Premises, at Landlord’s expense.

3

 

     4. Tenant Allowance.

     (a) Amount of Allowance. Landlord shall make available up to $756,805 (the “Tenant
Allowance”) for reimbursement of the costs and expenses for work performed and materials provided
in connection with remodeling the Premises following the date of this Amendment. The Tenant
Allowance shall be payable solely to reimburse Tenant for costs and expenses of the type for which
the Tenant Allowance was payable under Paragraph 5(a) of the Work Letter Agreement attached as
Exhibit “C” to the Lease and the fees, costs and expenses described in this Exhibit as being
payable from the Tenant Allowance, upon and subject to the terms and conditions set forth below.

     (b) Progress Payments. Landlord shall make progress payments to Tenant in respect of
the Tenant Allowance within thirty (30) days after Landlord’s receipt of Tenant’s written payment
request made in accordance with this subsection. Subject to the terms and conditions set forth in
this subsection, the Tenant Improvement Allowance shall be payable in installments as and when
costs are incurred and a payment request therefor is submitted by Tenant, provided that Tenant is
not in monetary default under the Lease and Tenant is not otherwise in default thereunder beyond
applicable notice and cure periods (and any amount not paid due to failure of this condition shall
be paid upon cure of such failure, so long as the other conditions herein shall have been and
continue to be satisfied). Each payment request shall include a copy of all supporting invoices
(which Tenant is not required to have paid prior to submission of its payment request), conditional
progress payment lien waivers (in the form prescribed by the California Civil Code) for all
subcontractors or vendors performing work or providing materials for a cost in excess of $5,000,
and pertinent back-up. Landlord shall fund the payment request within thirty (30) days following
receipt of the application and supporting materials (subject to the conditions set forth above);
provided that a ten percent (10%) retention shall be held on payments to Tenant until the final
disbursement requirements (as described in subsection (c) below) are satisfied, and further
provided that Landlord may, at its option, make payment by checks directly to Tenant’s contractors
and vendors, or to make the checks payable jointly.

     (c) Disbursement of 10% Retention. Landlord shall disburse the 10% retention
described in subsection (b) above within thirty (30) days after Landlord’s receipt of Tenant’s
written request therefor and satisfaction of each of the following conditions (all of which
constitute the final disbursement requirements): (i) Tenant is not in monetary default under the
Lease and Tenant is not otherwise in default thereunder beyond applicable notice and cure periods;
(ii) a Certificate of Occupancy has been issued for the Premises following completion of Tenant’s
remodeling; (iii) Tenant has submitted to Landlord final and unconditional lien releases and
waivers, from Tenant’s general contractor and from all subcontractors, materials suppliers and
other persons performing labor and/or supplying materials valued in excess of $5,000 in connection
with Tenant’s work; provided, however, that such lien releases and waivers may be conditional as to
the amount of the ten percent (10%) retention; (iv) Tenant’s written request is accompanied by
copies of invoices paid by Tenant in a total amount equal to or in excess of ninety (90%) of the
amount of the Tenant Allowance; (v) Tenant’s remodeling work is complete and Tenant has recorded a
notice of completion and provided Landlord with a copy thereof; and (vi) Tenant has delivered to
Landlord the certification of Tenant’s architect that Tenant’s work has been completed in
accordance the plans therefor approved by Landlord. If any of the lien releases and waivers
delivered by Tenant are conditional, Landlord may, at its option, make payment by checks directly
to Tenant’s contractors and vendors tendering conditional lien releases and waivers, or to make the
checks payable jointly to Tenant and them.

     (d) Outside Date. Landlord shall have no obligation to pay or disburse any portion of
the Tenant Allowance except to the extent that a payment request has been received by Landlord and
the conditions set forth above (including cure of any default by Tenant) have been satisfied on or
before than April 30, 2010.

     (e) Payments of Tenant Allowance. If a written request made by Tenant is not
sufficient as the entire amount requested but is sufficient as to a lesser amount, Landlord will
pay the lesser amount in respect of which Tenant’s request is sufficient. If Landlord shall fail
to pay to Tenant any amount due to Tenant within the thirty (30) day time period provided in
subsection (b) or (c) of Section 4 above, and if Landlord’s delinquency shall continue for thirty
(30) days following Tenant’s written notice to Landlord of such delinquency (and it is undisputed
that such amount is due), Landlord shall pay to Tenant a one-time late payment fee of five percent
(5%) of the amount due.

4

 

     5. Interpretation. All of Tenant’s Work shall be and constitute “Alterations” under
and pursuant to the terms and conditions of the Lease, except that the terms of this Exhibit, and
not Paragraph 13 of the Lease, shall govern the manner of the construction and installation of
Tenant’s Work.

     6. Deferral of Second Floor Rent Commencement Date. The date of July 1, 2008 set
forth in Section 3(b) of the Amendment to which this Exhibit is attached shall be deferred on a
day-for-day basis for the period of any delay in the commencement or completion of Tenant’s Work to
the extent resulting solely from the following: (a) the failure of Landlord to deliver the Second
Floor Premises to Tenant at the time provided pursuant to Section 1(a) of this Exhibit; (b) the
failure of Landlord to approve any item within the applicable time period set forth in this Exhibit
(which time periods shall mean the initial time periods set forth in this Work Letter for
Landlord’s consent, excluding any time period granted after a second notice before a matter is
deemed approved); (c) unusual and unforeseeable delay resulting from any of the following: strikes,
lock-outs or other labor troubles; riots, civil unrest or war; fire, earthquake, flood, or other
natural disaster; an interruption of electricity or other utility service needed for performance of
Tenant’s Work; or a moratorium generally imposed by the local jurisdiction on the granting of
building permits, Tenant acknowledging that, other than in the event of a moratorium as provided
above or delays caused by Landlord’s failure to acknowledge or consent to a building permit
applicable within the time period herein required, such date shall not be subject to deferral by
reason of any delays in obtaining a building permit for Tenant’s Work; or (d) Tenant’s cessation of
Tenant’s Work following the failure of Landlord to make any payment to Tenant in respect of the
Tenant Allowance within the thirty (30) day time period provided in subjection (b) or (c) of
Section 4 above, if it is undisputed that such amount is due and Landlord’s delinquency shall have
continued for thirty (30) days or more after Tenant’s written notice to Landlord of intention to
cease work if the delinquency is not cured.

End of Tenant Improvement Exhibit

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]