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Exhibit 10.7    
  

EXECUTED ORIGINAL

 
 

TABLE OF CONTENTS    
  

	 
	 	 
	 	Page

	1.	 	Terms and Definitions	 	3
	2.	 	Premises and Common Areas Leased	 	4
	3.	 	Term	 	5
	4.	 	Possession	 	5
	5.	 	Annual Basic Rent	 	5
	6.	 	Rental Adjustment	 	6
	7.	 	Security Deposit	 	10
	8.	 	Use	 	10
	9.	 	Payments and Notices	 	11
	10.	 	Brokers	 	11
	11.	 	Holding Over	 	11
	12.	 	Taxes on Tenant's Property	 	11
	13.	 	Condition of Premises	 	12
	14.	 	Alterations	 	12
	15.	 	Repairs	 	15
	16.	 	Liens	 	16
	17.	 	Entry by Landlord	 	16
	18.	 	Utilities and Services	 	16
	19.	 	Bankruptcy	 	17
	20.	 	Indemnification	 	17
	21.	 	Damage to Tenant's Property	 	17
	22.	 	Insurance	 	17
	23.	 	Damage or Destruction	 	19
	24.	 	Eminent Domain	 	21
	25.	 	Defaults and Remedies	 	21
	26.	 	Assignment and Subletting	 	23
	27.	 	Subordination	 	24
	28.	 	Estoppel Certificate	 	24
	29.	 	Building Planning	 	24
	30.	 	Rules and Regulations	 	25
	31.	 	Conflict of Laws	 	25
	32.	 	Successors and Assigns	 	25
	33.	 	Surrender of Premises	 	25
	34.	 	Professional Fees	 	25
	35.	 	Performance by Tenant	 	25
	36.	 	Mortgage Protection	 	26
	37.	 	Definition of Landlord	 	26
	38.	 	Waiver	 	26
	39.	 	Identification of Tenant	 	26
	40.	 	Terms and Headings	 	27
	41.	 	Examination of Lease	 	27
	42.	 	Time	 	27
	43.	 	Prior Agreements Amendments	 	27
	44.	 	Separability	 	27
	45.	 	Recording	 	27
	46.	 	Consents	 	27
	47.	 	Limitation on Liability	 	27

 

	48.	 	Exhibits and Riders	 	27
	49.	 	Signs and Auctions	 	27
	50.	 	Modification for Lender	 	27
	51.	 	Accord and Satisfaction	 	27
	52.	 	Financial Statements	 	28
	53.	 	Landlord's Signs	 	28
	54.	 	Quiet Enjoyment	 	28
	55.	 	Tenant as Corporation	 	28
	56.	 	Non-Discrimination	 	28
	57.	 	Riders	 	28

2

 
STANDARD FORM OFFICE LEASE  

        This LEASE is made as of the 20th day of July, 1984, by and between Landlord and Tenant. 

WITNESSETH:  

        1.    Terms and Definitions.    For the purposes of this Lease, the following terms shall have the following
definitions and meanings: 

	(a)
	Landlord:
BRAMALEA LIMITED, an Ontario, Canada corporation.

	(b)
	Landlord's
address: 3151 Airway Avenue, Suite G-1 Costa Mesa, California 92626.

	(c)
	Tenant:
Alliance Bank.

	(d)
	Building
Address: 100 Corporate Pointe, Culver City, California 90230.

	(e)
	Suite
Number: 110.

	(f)
	Floor(s)
upon which the Premises are located: First.

	(g)
	Premises:
Those certain premises defined in Paragraph 2(a) hereinbelow.

	(h)
	Site:
The parcel or parcels of real property defined in Paragraph 2(a) below.

	(i)
	Approximate
Rentable Square Feet within Premises: 11,638.

	(j)
	Term:
15 Lease Years and -0- Months.

	(k)
	Building
Standard Work: All the work to be done at Landlord's expense in the Premises pursuant to the provisions of the Work Letter Agreement described in Paragraph 2 below.

	(l)
	Building
Nonstandard Work: All the work done in the Premises by Landlord pursuant to the provisions of the Work Letter Agreement other than the Building Standard Work.

	(m)
	Leasehold
Improvements: The aggregate of the Building Standard Work and the Building Nonstandard Work.

	(n)
	Estimated
Commencement Date: March 1, 1985.

	(o)
	Commencement
Date: The earlier of the following two dates:

	(i)
	Thirty
(30) days after Landlord shall have given Tenant written notice of the date upon which all of the improvements required to be constructed by
Landlord pursuant to the Work Letter Agreement (except for (a) the placing of the door on the vault, which is to be constructed for use by Tenant, and (b) completion of the cabinet work), have been
substantially completed as determined by Landlord's architect or space planner (except that if completion of such improvements is delayed by Tenant as provided in the Work Letter Agreement, then the
Commencement Date as would otherwise be established shall be accelerated by the number of days of said delay) or

	(ii)
	The
date upon which the Tenant opens for business. 

	(p)
	Annual
Basic Rent: $349,395.00 per year payable monthly at $29,116.25 per month for the first five years of the lease term and $286,294.80 per year payable monthly at $23,857.90 per
month for the remaining lease term, subject to adjustment as provided in the Rider.

	(q)
	Landlord's
Contribution to Operating Expenses: The greater of $5.00 per square foot, for a total of $58,190 annually; or the operating cost per square foot upon actual or imputed
occupancy of ninety percent (90%) of the building. 

3

 
	(r)
	Tenant's
Percentage of Total Rentable Area: 10.6%.

	(s)
	Security
Deposit: $58,190.

	(t)
	Permitted
Use: Operation of a Commercial bank and/or for general office purposes and purposes incident thereto.

	(u)
	Amount
of Required Liability Insurance: $2,000,000.

	(v)
	Brokers:
Westside Realty and the Klabin Company.

	(w)
	Construction
Area: 10,513 square feet.

	(x)
	Number
of Parking Spaces and Monthly Parking Rental: 32 parking spaces at $35.00 per care per month and 10 parking spaces at no additional rental. 

        2.    Premises and Common Areas Leased.    

        (a)  Landlord
hereby leases to Tenant and Tenant hereby leases from Landlord, the Premises contained within the suite designated in Paragraph 1, outlined on the Floor
Plan attached hereto and marked Exhibit "A" and incorporated herein by this reference, in the building located at the address designated
in Paragraph 1(d) above (the "Building"), located on the parcel or parcels of real property (the "Site") outlined on the Site Plan attached hereto as Exhibit "B" and incorporated herein
by this reference, and improved or to be improved by Landlord with the Leasehold Improvements described in the Work Letter Agreement, a copy of which is attached hereto and marked Exhibit "C"
and incorporated herein by this reference, said Premises being agreed, for the purposes of this Lease, to have an area approximately the number of rentable square feet as defined in
Exhibit "C-1" attached hereto and designated in Paragraph 1(i) and being situated on the floor(s) designated in Paragraph 1(f) above. By taking possession of the Premises, Tenant
accepts the Leasehold Improvements as completed or substantially completed, and in the latter case, Landlord shall provided Tenant with a list of incomplete and/or corrective items—which
list shall be approved and acknowledged by Tenant and which items Landlord shall complete and/or correct promptly thereafter and subject also to items listed on a similar list to be prepared by Tenant
and delivered to Landlord within thirty (30) days after Landlord's delivery of possession of the Premises to Tenant, which items Landlord shall complete and/or correct promptly thereafter, and to any
latent defects. 

        The
parties hereto agree that said letting and hiring is upon and subject to the terms, covenants and conditions herein set forth and Tenant covenants as a material part of the
consideration for this Lease to keep and perform each and all of said terms, covenants and conditions by it to be kept and performed and that this Lease is made upon the condition of such performance. 

        (b)  Tenant
shall have the nonexclusive right to use in common with other tenants in the Building and other buildings located in any planned development of which the Site is
a part, and subject to the Rules and Regulations referred to in Paragraph 30 below, the following areas ("Common Areas") appurtenant to the Premises: 

          (i)  The
common entrances, lobbies, restrooms, elevators, stairways and accessways, loading docks, ramps, drives and platforms and any passageways and serviceways thereto,
and the common pipes, conduits, wires and appurtenant equipment serving the Premises. 

        (ii)  Parking
areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways and landscaped areas appurtenant to the building. 

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        (c)  Landlord reserves the right from time to time without unreasonable interference with Tenant's use: 

          (i)  To
install, use, maintain, repair and replace pipes, ducts, conduits, wires and appurtenant meters and equipment for service to other parts of the Building above the
ceiling surfaces, below the floor surfaces, within the walls and in the central core areas, and to relocate any pipes, ducts, conduits, wires and appurtenant meters and equipment included in the
Premises which are located in the Premises or located elsewhere outside the Premises, and to expand the Building; 

        (ii)  To
make any changes to the Common Areas, including, without limitation, changes in the location, size, shape and number of driveways, entrances, parking spaces, parking
areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas and walkways. In connection therewith, Landlord shall use its best efforts not to interfere unreasonably
with Tenant's business; 

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

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

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

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

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

        3.    Term.    The term of this Lease shall be for the period designated in Paragraph 1 commencing on the Commencement
Date, and ending on the expiration of such period, unless the term hereby demised shall be sooner terminated as hereinafter provided. The Commencement Date and the date upon which the term of this
Lease shall end shall be determined in accordance with the provisions of Paragraph 1 and said dates will be specified in Landlord's Notice of Lease Term Dates ("Notice"), in the form of Exhibit "E"
which is attached hereto and is incorporated herein by this reference, and shall be served upon Tenant as provided in Paragraph 9, after Landlord delivers or tenders possession of the Premises to
Tenant. 

        4.    Possession.    Tenant agrees that in the event of the inability of Landlord to deliver possession of the
Premises to Tenant on the date above specified for the commencement of the term of this Lease, this Lease shall not be void or voidable, nor shall Landlord be liable to Tenant for any loss or damage
resulting therefrom, nor shall the expiration date of the above term be in any way extended, but in such event Tenant shall not be liable for any rent until such time as Landlord tenders delivery of
possession of the Premises to Tenant with Landlord's work therein, if any, substantially completed. Notwithstanding the foregoing, if Landlord has not delivered the Premises to Tenant on or before
June 30, 1985, except where delays are occasioned by Tenant, Tenant may terminate this Lease by providing written notice of such intention to terminate at any time after June 30, 1985, but prior to
Landlord's delivery of the Premises. 

        5.    Annual Basic Rent.    

        (a)  Tenant
agrees to pay Landlord as Annual Basic Rent for the Premises the Annual Basic Rent designated in Paragraph 1 (subject to adjustment as hereinafter provided) in
twelve (12) equal monthly installments, each in advance on the first day of each and every calendar month during said term, except that the first month's rent shall be paid upon the execution hereof.
In the event the term of this 

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Lease commences or ends on a day other than the first day of a calendar month, then the rental for such periods shall be prorated in the proportion that the number of days this Lease is in effect
during such periods bears to thirty (30), and such rental shall be paid at the commencement of such periods. In addition to said Annual Basic Rent, Tenant agrees to pay the amount of the rental
adjustments as and when hereinafter provided in this Lease. Said Annual Basic Rent, additional rent and rental adjustments shall be paid to Landlord, without any prior demand therefor and, except as
otherwise specifically provided for hereunder, without any deduction or offset whatever, in lawful money of the United States of America, which shall be legal tender at the time of payment, at the
address of Landlord designated in Paragraph 1 or to such other person or at such other place as Landlord may from time to time designate in writing. Further, all charges to be paid by Tenant
hereunder, including, without limitation, payments for real property taxes, insurance, repairs and parking shall be considered additional rent for the purposes of this Lease, and the word 'rent' in
this Lease shall include such additional rent unless the context specifically or clearly implies that only the Annual Basic Rent is referenced. 

        (b)  (SEE
RIDER) 

        (c)  Should
rent control or other governmental limitations on rental be imposed so that Landlord cannot legally collect from Tenant the full rental and other charges to be
paid by Tenant as provided in this Lease ("Required Rent"), the portion thereof not collected shall be deferred and paid to Landlord, without interest or penalty thereon if payment is timely
hereunder, (i) at such time or times as the Required Rent is less than the maximum that may be legally collected from Tenant, Tenant shall pay to Landlord the deferred portion of the Required Rent up
to the maximum legally collected by Landlord; and (ii) at such time as such controls or limitations are removed, the total deferred portion of the Required Rent shall be immediately paid by Tenant to
Landlord. 

        6.    Rental Adjustment.    

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

        Tenant's
Percentage: The percentage set forth in Paragraph 1(r) above. 

        Landlord's
Contribution to Operating Expense: The amount of the estimated annual Operating Expenses multiplied by Tenant's Percentage which Landlord has included in Annual Basic Rent and
which amount is set forth in Paragraph 1(q) above. 

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        Operating Expenses: All direct costs of operation and maintenance of the Building Common Areas and the Site ("Operating Expenses") as determined by standard accounting practices,
calculated assuming the Building is at least ninety percent (90%) occupied, including the following costs by way of illustration, but not limitation: real property taxes and assessments and any taxes
or assessments hereafter imposed in lieu thereof; rent taxes, gross receipt taxes (whether assessed against Landlord or assessed against Tenant and collected by Landlord, or both); water and sewer
charges; the net cost and expenses of insurance for which Landlord is responsible hereunder or which Landlord or any first mortgagee with a lien affecting the Premises reasonably deems necessary in
connection with the operation of the Building; utilities; janitorial services; security; labor; parking charges, utilities surcharges or any other costs levied, assessed or imposed by, or at the
direction of, or resulting from statutes or regulations or interpretations thereof, promulgated by any federal, state, regional, municipal or local government authority in connection with the use or
occupancy of the Building or the Premises or the parking facilities serving the Building or the Premises; costs incurred in the management of the Building, if any (including supplies, wages and
salaries of employees used in the management, operation and maintenance of the Building but not above the level of Building Manager, and payroll taxes and similar governmental charges with respect
thereto, a management fee to an independent management company or, if none, to Landlord not in excess of prevailing rates; and an administrative fee, such administrative fee not to exceed five percent
(5%) of the annual Operating Expenses excluding therefrom such fee); air conditioning; waste disposal; heating; ventilating; elevator maintenance; supplies; materials; equipment; tools; repair and
maintenance of the structural portions of the Building, including the plumbing, heating, ventilating, air conditioning and electrical systems installed or furnished by Landlord; and maintenance, costs
and upkeep of all parking and common areas, depreciation and rental of personal property used in maintenance (provided that Tenant shall not be charged for rent and depreciation on the same item);
depreciation and rental of all replacements of and additions to heating, ventilating, air conditioning and energy management equipment and systems; costs and expenses of gardening and landscaping;
maintenance of signs (other than Tenant's signs); personal property taxes levied on or attributable to personal property used in connection with the entire Premises, including the Common Areas;
reasonable audit or verification fees; and costs and expenses of repairs, resurfacing, repairing, maintenance, painting, lighting, cleaning, refuse removal, security and similar items, including
appropriate reserves. Operating Expenses shall not include depreciation on the Building or equipment therein except as hereinabove provided, Landlord's executive salaries or real estate brokers'
commissions; cost of services provided to other tenants in the Building above those Landlord is required to provide to Tenant hereunder; costs reimbursed by insurance proceeds, condemnation awards
(less all costs of obtaining said sums including court costs and attorneys' fees which shall be an Operating Expenses); costs charged directly to Tenants in the Building; capital expenditures (unless
such capital expenditures will reasonably reduce Operating Expenses); legal fees and other costs incurred in connection with new leases or lease renewals; Leasehold Improvement costs; costs to
complete construction of the Building including, without limitation, landscaping and parking facilities; costs of financing or refinancing the Building including, without limitation, points, loan
brokers' fees and ground rental; fees paid to Landlord or entities related to Landlord for maintenance, repair and other services in an amount exceeding the prevailing rates for the same services; and
penalties and fines paid by Landlord which are not a result of Tenant's default under this Lease. 

        As
used herein, the term "real estate taxes" shall include any form of assessment, license fee, license tax, business license fee, commercial rental tax, levy, charge, tax or similar
imposition imposed by any authority having the direct power to tax, including any city, county, state or federal government, or any school, agricultural, lighting, drainage or other improvement or
special assessment district 

7

 

thereof, as against any legal or equitable interest of Landlord in the Premises, including, but not limited to, the following: 

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

        (ii)  any
assessment, tax, fee, levy or charge in substitution, partially or totally, of any assessment, tax, fee, levy or charge previously included within the definition of
real estate tax, it being acknowledged by Tenant and Landlord that Proposition 13 was adopted by the voters of the State of California in the June 1978 election and that assessments, taxes, fees,
levies and charges may be imposed by governmental agencies for such services as fire protection, street, sidewalk and road maintenance, refuse removal and for other governmental services formerly
provided without charge to property owners or occupants. It is the intention of Tenant and Landlord that all such new and increased assessments, taxes, fees, levies and charges be included within the
definition of "real estate taxes" for the purposes of this Lease; 

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

        (iv)  any
assessment, tax, fee, levy or charge upon this transaction or any document to which Tenant is a party, creating or transferring an interest or an estate in the
Premises. 

        Notwithstanding
any provision of this subparagraph 6(a) expressed or implied to the contrary, "real estate taxes" shall not include Landlord's federal, state or local income, franchise,
inheritance or estate taxes; Landlord's personal property taxes; taxes attributable to tenant improvements for other tenants of the Building which tenant improvements exceed $20.00 per square foot;
and any taxes attributable to additions to the Building or to construction of or additions to other buildings in the area. 

8

   
        (b)  Tenant's pro rata share of Operating Expenses shall be calculated on a quarterly basis and shall be determined for each quarter by adding (i) Tenant's pro rata share (as
hereinafter described) for said quarter of "Fixed Operating Expenses", which shall mean and refer to 1/4th of those Operating Expenses which will not vary in amounts solely depending upon the number
of tenants from time to time leasing or occupying premises within the Building and/or the number of square feet of Building which is from time to time leased or occupied by Tenants (including, without
limitation, real estate and personal property taxes, insurance premiums, gardening and landscaping expenses, Common Area water and sewage charges, depreciation and rental of personal property, audit
or verification fees, sign maintenance, exterior lighting, and general parking lot repair and maintenance), plus (ii) Tenant's pro rata share (as hereinafter described for said quarter of "Variable
Operating Expenses", which shall mean and refer to those Operating Expenses which will vary in amount depending upon the number of Tenants from time to time leasing occupying premises within the
Building and/or the number of square feet of Building which is from time to time leased or occupied by Tenants (including, without limitation, janitorial service, trash removal, Common Area heating
and air conditioning, supplies, management fees, wages and salaries of employees), and then subtracting (with respect to each quarter) 1/4th of the Landlord's Contribution to Operating Expenses, which
is set forth in subparagraph l(q). Tenant's pro rata share of Fixed Operating Expenses shall be Tenant's Percentage, as set forth in subparagraph l(r). Tenant's pro rata share of Variable Operating
Expenses shall be the fraction thereof of which the numerator is the approximate Rentable Square Feet of the Premises, as set forth in subparagraph l(i), and the denominator is the total number of
square feet in the Building situated on the Site, which, as of the last day of the applicable month, is leased to tenants under leases, the term of which has commenced. If at any time during the term
of this Lease Landlord anticipates that Tenant shall be required to make a payment on account of its pro rata share of 1/4th of Operating Expenses with respect to the next calendar quarter after
notice, Landlord shall notify Tenant in writing of Landlord's best estimate of the amount of such pro rata share for the next calendar quarter following such notice. At such time as Landlord
anticipates that Tenant shall be required to make such a payment with respect to the next succeeding calendar quarter, Landlord shall notify Tenant in writing of Landlord's best estimate of such pro
rata share for such next succeeding calendar quarter. Beginning with the first rent payment date after such notice by Landlord, and on each third succeeding rent payment date thereafter ("Operating
Expense Payment Date"), and without the necessity of Landlord billing Tenant therefor, Tenant shall pay to Landlord, in addition to all other amounts payable hereunder, the amount of such estimate;
provided, however, Landlord may adjust such estimate from time to time, by written notice to Tenant, on the basis of Landlord's experience and reasonably anticipated costs, and such adjustment shall
be effective as of the next Operating Expense Payment Date after such notice is given. Within thirty (30) days after the end of each calendar year during which Tenant shall have made any estimated
payments hereunder, Landlord shall furnish to Tenant a statement showing the total actual Fixed and Variable Operating Expenses for each month during the calendar year just ended, and Tenant's actual
pro rata share of Operating Expenses for such month. In the event that the aggregate amount which Tenant has paid to Landlord during the preceding calendar year on account of estimated Operating
Expenses is less than Tenant's aggregate pro rata share, as shown on such statement, for the twelve (12) calendar months during such calendar year, Tenant shall pay such difference to Landlord on the
next rent payment date. In the event that during the preceding calendar year Tenant has paid to Landlord more than its actual share of such actual costs as shown on such statement, the amount of such
difference shall, concurrently with such statement, be paid by
Landlord to Tenant. Tenant shall have the right, at Tenant's expense, to contest the amount of Operating Expenses and, in connection therewith, Tenant shall have the right to review Landlord's books
and records and make copies thereof. In the event Tenant's share of Operating Expenses is less than the amount shown on Landlord's statement, Landlord shall immediately rebate such overpayment,
together with the maximum interest allowed by law, to Tenant. 

9

 

        Even
though the term has expired and Tenant has vacated the Premises, when the final determination is made of Tenant's Percentage of Operating Expenses for the year in which this Lease
terminates, Tenant shall immediately pay any increase due over the estimated expenses paid and conversely any overpayment made in the event said expenses decrease shall be immediately rebated by
Landlord to Tenant. 

        Notwithstanding
any contained in this Paragraph 6, the rental payable by Tenant shall in no event be less than the rent specified in Paragraph 5 hereof. 

        7.    Security Deposit.    Tenant has deposited with Landlord the Security Deposit designated in Paragraph l(s). Said
deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the term
hereof. If Tenant defaults with respect to any provisions of this Lease, including but not limited to the provisions relating to the payment of rent, Landlord may (but shall not be required to) use,
apply or retain all or any part of this Security Deposit for the payment of any rent or any other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to
spend by reason of Tenant's default or to compensate Landlord for any loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of said deposit is so used or applied,
Tenant shall, within ten (10) days after demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant's failure to do so shall
be a material breach of this Lease. Tenant shall not be entitled to interest on such Security Deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it,
the Security Deposit or any balance thereof shall be returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interests hereunder) at the expiration of the Lease term, provided
that Landlord may retain the Security Deposit until such time as any amount due from Tenant in accordance with Paragraph 5 hereof has been determined and paid in full. Should Landlord sell its
interest in the Premises during the term hereof and if Landlord deposits with the purchaser thereof the then unappropriated funds deposited by Tenant as aforesaid, thereupon Landlord shall be
discharged from any further liability with respect to such Security Deposit. 

        8.    Use.    Tenant shall use the Premises for the operation of a commercial bank and/or for general office purposes
and purposes incident thereto, and shall not use or permit the Premises to be used for any other purpose without the prior written consent of Landlord. Tenant shall not use or occupy the Premises in
violation of any covenants, conditions and restrictions affecting the Site and recorded of the date hereof, copies of which covenants, conditions and restrictions have been delivered to Tenant by
Landlord, or of any law or of the certificates of occupancy issued for the Building of which the Premises are a part, and shall, upon five (5) days' written notice from Landlord, discontinue any use
of the Premises which is declared by any governmental authority having jurisdiction to be a violation of any recorded covenants, conditions and restrictions affecting the Site or of any law or of said
certificate of occupancy. Tenant shall comply with any direction of any governmental authority having jurisdiction which shall, by reason of the nature of Tenant's use or occupancy of the Premises,
impose any duty upon Tenant or Landlord with respect to the Premises or with respect to the use or occupation thereof. Tenant shall not do or permit to be done anything which will invalidate or
increase the cost of any fire, extended coverage or any other insurance policy covering the Building and/or property located therein and shall comply with all rules, orders, regulations and
requirements of the Pacific Fire Rating Bureau or any other organization performing a similar function. Tenant shall promptly upon demand reimburse Landlord as additional rent for any additional
premium charged for such policy by reason of Tenant's failure to comply with the provisions of this Paragraph 8. Subject to the rights granted to Tenant hereunder, Tenant shall not do or permit
anything to be done in or about the Premises which will obstruct or interfere with the rights of other tenants or occupants of the Building, or injure or annoy them, or use or allow the Premises to be
used for any unlawful purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall not commit or suffer to be committed any waste in or upon the Premises
and shall keep the Premises in first-class repair and appearance. 

10

   
        9.    Payments and Notices.    All rents and other sums payable by Tenant to Landlord hereunder shall be paid to
Landlord at the address designated by Landlord in Paragraph 1(b) above, or at such other places as Landlord may hereafter designate in writing. Any notice required or permitted to be given hereunder
must be in writing and may be given by personal delivery or by mail, and if given by mail shall be deemed sufficiently given if sent by registered or certified mail addressed to Tenant at the Building
of which the Premises are a part, or to Landlord at its address designated in Paragraph 1(b). Either party may by written notice to the other specify a different address for notice purposes, except
that Landlord may in any event use the Premises as Tenant's address for notice purposes. If more than one tenant is named under this Lease, service of any notice upon any one of said tenants shall be
deemed as service upon all of said tenants. 

        10.    Brokers.    The parties recognize that the brokers who negotiated this Lease are the brokers whose names are
stated in Paragraph 1, and agree that Landlord shall be solely responsible for the payment of brokerage commission to said brokers, and that Tenant shall have no responsibility therefor. As
part of the consideration for the granting of this Lease, Tenant represents and warrants to Landlord that to Tenant's knowledge, no other broker, agent or finder negotiated or was instrumental in
negotiating or consummating this Lease, and that Tenant knows of no other real estate broker, agent or finder who is or might be entitled to a commission or compensation in connection with this Lease.
Any broker, agent or finder of Tenant whom Tenant has failed to disclose herein shall be paid by Tenant. Tenant shall hold Landlord harmless from all damages and indemnify Landlord for all said
damages paid or incurred by Landlord resulting from any claims that may be asserted against Landlord by any broker, agent or finder dealt with but undisclosed by Tenant herein; and Landlord shall hold
Tenant harmless from all damages and indemnify Tenant for all said damages paid or incurred by Tenant resulting from any claims that may be asserted against Tenant by any broker, agent or finder dealt
with but undisclosed by Landlord herein. 

        11.    Holding Over.    If Tenant holds over after the expiration or earlier termination of the term hereof without
the express written consent of Landlord, Tenant shall become a tenant at sufferance only, at a rental rate equal to one hundred twentyfive percent (125%) of Landlord's then scheduled rental rate which
would be applicable to the Premises upon the date of such expiration (subject to adjustment as provided in Paragraph 6 hereof and prorated on a daily basis), and otherwise subject to the terms,
covenants and conditions herein specified, so far as applicable. Acceptance by Landlord of rent after such expiration or earlier termination shall not constitute a holdover hereunder or result in a
renewal. The foregoing provisions of this Paragraph 11 are in addition to and do not affect Landlord's right of re-entry or any rights of Landlord hereunder or as otherwise provided by law. If Tenant
fails to surrender the Premises upon the expiration of this Lease despite demand to do so by Landlord, Tenant shall indemnify and hold Landlord harmless from all loss or liability, including, without
limitation, any claim made by any succeeding tenant founded on or resulting from such failure to surrender. 

        12.    Taxes on Tenant's Property.    

        (a)  Tenant
shall be liable for and shall pay at least ten (10) days before delinquency, taxes levied against any personal property or trade fixtures placed by Tenant in or
about the Premises. If any such taxes on Tenant's personal property or trade fixtures are levied against Landlord or Landlord's property or if the assessed value of the Premises is increased by the
inclusion therein of a value placed upon such personal property or trade fixtures of Tenant, and if Landlord, after written notice to Tenant, pays the taxes based upon such increased assessments,
which Landlord shall have the right to do regardless of the validity thereof, but only under proper protest if requested by Tenant, Tenant shall upon demand repay to Landlord the taxes levied against
Landlord, or the proportion of such taxes resulting from such increase in the assessment; provided that in any such event, at Tenant's sole cost and expense, Tenant shall have the right, in the name
of Landlord and with Landlord's full cooperation, to bring suit in any court of competent jurisdiction to recover the amount of any such taxes so paid under protest, any amount so recovered to belong
to Tenant. 

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        (b)  If
the Leasehold Improvements in the Premises, whether installed and/or paid for by Landlord or Tenant and whether or not affixed to the real property so as to become a
part thereof, are assessed for real property tax purposes at a valuation higher than the valuation at which Leasehold Improvements conforming to Landlord's "Building Standard" in other space in the
Building are assessed, then the real property taxes and assessments levied against Landlord or the property by reason of such excess assessed valuation shall be deemed to be taxes levied against
personal property of Tenant and shall be governed by the provisions of subparagraph 12(a) above. If the records of the County Assessor are available and sufficiently detailed to serve as a basis for
determining whether said Leasehold Improvements are assessed at a higher valuation than Landlord's "Building Standard", such records shall be binding on both Landlord and Tenant. If the records of the
County Assessor are not available or sufficiently detailed to serve as a basis for making said determination, the actual cost of construction shall be used. 

        13.    Condition of Premises.    Tenant acknowledges that neither Landlord nor any agent of Landlord has made any
representation or warranty with respect to the Premises or the Building or with respect to the suitability of either for the conduct of Tenant's business. The taking of possession of the Premises by
Tenant shall conclusively establish that the Premises and the Building were at such time in satisfactory condition, subject to items listed on a "punch list" prepared by Landlord and Tenant within
thirty (30) days after Landlord's delivery of the Premises to Tenant, and latent defects. 

        14.    Alterations.    

        (a)  Tenant
may, at any time and from time to time during the term of this Lease, at its sole cost and expense, make alterations, additions, installations, substitutions,
improvements and decorations
(hereinafter collectively called "changes" and, as applied to changes provided for in this Paragraph 14, "Tenant's Changes") in and to the Premises, excluding structural changes, on the
following conditions, and providing such changes will not result in a violation or or require a change in the certificate of occupancy applicable to the Premises: 

        (1)  The
outside appearance, character or use of the Building shall not be affected, and no Tenant's Changes shall weaken or impair the structural strength or, in the opinion
of Landlord, lessen the value of the Building. 

        (2)  No
part of the Building outside of the Premises shall be physically affected. 

        (3)  The
proper functioning of any of the mechanical, electrical, sanitary and other service systems or installations of the Building ("Service Facilities") shall not be
adversely affected and there shall be no construction which might interfere with Landlord's free access to the Service Facilities or interfere with the moving of Landlord's equipment to or from the
enclosures containing the Service Facilities. 

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        (4)  In performing the work involved in making such changes, Tenant shall be bound by and observe all of the conditions and covenants contained in this Paragraph. 

        (5)  All
work shall be done at such times and in such manner as Landlord from time to time may designate. 

        (6)  Tenant
shall not be permitted to install and make part of the Premises any materials, fixtures or articles which are subject to liens, conditional sales, contracts or
chattel mortgages. 

        (7)  At
the date upon which the term of this Lease shall end, or the date of any earlier termination of this Lease, Tenant shall on Landlord's written request restore the
Premises to their condition prior to the making of any changes permitted by this Paragraph, reasonable wear and tear excepted. 

        (b)  Before
proceeding with any change (exclusive of changes to items constituting Tenant's personal property), Tenant shall submit to Landlord plans and specifications for
the work to be done, which shall require Landlord's written approval. Landlord shall then prepare or cause to be prepared, at Tenant's expense, mechanical, electrical and plumbing drawings and may
confer with consultants in connection with the preparation of such drawings and may also submit to such consultant(s) any of the plans prepared by Tenant. If Landlord or such consultant(s) shall
disapprove of any of the Tenant's plans, Tenant shall be advised of the reasons of such disapproval. In any event, Tenant agrees to pay to Landlord, as additional rent, the cost of such consultation
and review immediately upon receipt of invoices either from Landlord or such consultant(s). 

        (c)  If
the proposed change requires approval by or notice to the lessor of a superior lease or the holder of a mortgage, no change shall be proceeded with until such
approval has been received, or such notice has been given, as the case may be, and all applicable conditions and provisions of said superior lease or mortgage with respect to the proposed change or
alteration have been met or complied with at Tenant's expense; and Landlord, if it approves the change, will request such approval or give such notice, as the case may be. Any change for which
approval has been received shall be performed strictly in accordance with the approved plans and specifications, and no amendments or additions to such plans and specifications shall be made without
the prior written consent of Landlord. 

        (d)  After
Landlord's written approval has been sent to Tenant and the approval by or notice to the lessor of a superior lease or the holder of a superior mortgage has been
received or given, as the case may be, Tenant shall enter into an agreement for the performance of the work to be done pursuant to this Paragraph with Landlord's contractor or, at Landlord's option,
with such other contractor or contractors as Tenant may choose from an approved list to be submitted by Landlord. All costs and expenses incurred in Tenant's Changes shall be paid by Tenant within
seven (7) days after billing by Landlord or any such contractor or contractors. If Landlord approves the construction of specific interior improvements in the Premises by other contractors
chosen by Tenant from a list prepared by Landlord at Tenant's request, then Tenant's contractors shall obtain on behalf of Tenant and at Tenant's sole cost and expense, (i) all necessary
governmental permits and certificates for the commencement and prosecution of Tenant's Changes and for final approval thereof upon completion, and (ii) a completion and lien indemnity bond, or
other surety, satisfactory to Landlord, for the Tenant's Changes. In the event Tenant shall request any changes in the work to be performed after the submission of the plans referred to in this
Paragraph 14, such additional changes shall be subject to the same approvals and notices as the changes initially submitted by Tenant. 

        (e)  Tenant
shall pay to Landlord for Landlord's services performed pursuant to this Paragraph 14 a fee equal to five percent (5%) of the total cost of the Tenant's
Changes. 

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        (f)    All
Tenant's Changes and the performance thereof shall at all times comply with (i) all laws, rules, orders, ordinances, directions, regulations and requirements
of all governmental authorities, agencies, offices, departments, bureaus and boards having jurisdiction thereof, (ii) all rules, orders, directors, regulations and requirements of the Pacific
Fire Rating Bureau, or of any similar insurance body or bodies, and (iii) all rules and regulations of Landlord, and Tenant shall cause Tenant's Changes to be performed in compliance therewith
and in good and first-class workmanlike manner, using materials and equipment at least equal in quality and class to the original installation of the Building. Tenant's Changes shall be performed in
such manner as not to interfere with the occupancy of any other tenant in the Building, nor delay or impose any additional expense upon Landlord in the construction, maintenance or operation of the
Building, and shall be performed by contractors or mechanics approved by Landlord and submitted to Tenant pursuant to this Paragraph. Throughout the performance of Tenant's Changes, Tenant, at its
expense, shall carry or cause to be carried workmen's compensation insurance in statutory limits, and general liability insurance for any occurrence in or about the Building, of which Landlord and its
managing agent shall be named as parties insured, in such limits as Landlord may reasonably prescribe, with insurers reasonably satisfactory to Landlord. Tenant shall furnish Landlord with reasonably
satisfactory evidence that such insurance is in effect at or before the commencement of Tenant's Changes and, on request, at reasonable intervals thereafter during the continuance of Tenant's Changes. 

        (g)  Tenant
further covenants and agrees that any mechanic's lien filed against the Premises or against the Building for work claimed to have been done for or materials
claimed to have been furnished to Tenant, will be discharged by Tenant, by bond or otherwise, within ten (10) days after the filing thereof, at the cost and expense of Tenant. All alterations,
decorations, additions or improvements upon the Premises, made by either party, including (without limiting the generality of the foregoing) all wallcovering, built-in cabinet work,
paneling and the like, shall, unless Landlord elects otherwise,
become the property of Landlord, and shall remain upon and be surrendered with the Premises, as a part thereof, at the end of the term hereof, except that Landlord may be written notice to Tenant,
given at least ninety (90) days prior to the end of the term, require Tenant to remove all partitions, counters, railings and the like installed by Tenant, and Tenant shall repair any damage to
the Premises arising from such removal or, at Landlord's option, shall pay to Landlord all of Landlord's costs of such removal and repair. 

        (h)  All
articles of personal property and all business and trade fixtures, machinery and equipment, furniture and movable partitions owned by Tenant or installed by Tenant
at its expense in the Premises shall be and remain the property of Tenant and may be removed by Tenant at any time during the lease term provided Tenant is not in default hereunder, and provided
further that Tenant shall repair any damage caused by such removal. If Tenant shall fail to remove all of its effects from said Premises upon termination of this Lease for any cause whatsoever,
Landlord may, at its option, remove the same in any manner that Landlord shall choose, and store said effects without liability to Tenant for loss thereof, and Tenant agrees to pay Landlord upon
demand any and all expenses incurred in such removal, including court costs and attorneys' fees and storage charges on such effects for four (4) months after the same shall be in Landlord's
possession, or Landlord may, at its option, without notice, sell said effects or any of the same, at private sale and without legal process, for such price as Landlord may obtain and apply the
proceeds of such sale upon any amounts due under this Lease from Tenant to Landlord and upon the expense incident to the removal and sale of said effects. 

        (i)    Landlord
reserves the right at any time and from time to time without the same constituting an actual or constructive eviction and without incurring any liability to
Tenant therefor or otherwise affecting Tenant's obligations under this Lease, to make such changes, alterations, additions, improvements, repairs or replacements in or to the Building (including the
Premises if 

14

 

required so to do by any law or regulation, at Tenant's sole cost and expense) and the fixtures and equipment thereof, as well as in or to the street entrances, halls, passages and stairways thereof,
or to change the name by which the Building is commonly known, as Landlord may deem necessary or desirable. Nothing contained in this Paragraph 14 shall be deemed to relieve Tenant of any duty,
obligation or liability of Tenant with respect to making any repair, replacement or improvement or complying with any law, order or requirement of any government or other authority and nothing
contained in this Paragraph 14 shall be deemed or construed to impose upon Landlord any obligation, responsibility or liability whatsoever, for the care, supervision or repair of the Building
or any part thereof other than as otherwise provided in this Lease. 

        (j)    Notwithstanding
the foregoing, Tenant may make minor non-structural changes costing less than Twenty Thousand Dollars ($20,000) per year, provided that such changes do
not affect mechanical, HVAC, electrical or plumbing systems in the Building or unreasonably affect the floor load. 

        15.    Repairs.    

        (a)  Tenant
shall, when and if needed or whenever requested by Landlord to do so, at Tenant's sole cost and expense, maintain and make all repairs to the Premises and every
part thereof, to keep, maintain and preserve the Premises in first-class condition, excepting ordinary wear and tear, and repair. Any such maintenance and repairs shall be performed by Landlord's
contractor, or, at Landlord's option, by such contractor or contractors as Tenant may choose from an approved list to be submitted by Landlord. All costs and expenses incurred in such maintenance and
repair shall be paid by Tenant within seven (7) days after billing by Landlord or such contractor or contractors. Tenant shall upon the expiration or sooner termination of the term hereof
surrender the Premises to Landlord in the same condition as when received. Landlord shall have no obligation to alter, remodel, improve, repair, decorate or paint the Premises or any part thereof and
the parties hereto affirm that Landlord has made no representations to Tenant respecting the condition of the Premises except as specifically herein set forth. 

        (b)  Anything
contained in subparagraph 15(a) above to the contrary notwithstanding, Landlord shall repair and maintain the structural portions of the Building, including the
basic plumbing, heating, ventilating, air conditioning and electrical systems installed or furnished by Landlord, unless such maintenance and repairs are caused in part or in whole by the act,
negligence or fault of Tenant, its agents, servants, employees or invitees, in which case Tenant shall pay to Landlord, as additional rent, the reasonable cost of such maintenance and repairs.
Landlord shall not be liable for any failure to make any such repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after written notice (or Landlord's
receipt of oral notice in the event of an emergency) of the need of such repairs or maintenance is given to Landlord by Tenant. There shall be no abatement of rent (except as provided in
Paragraph 23 hereof), and no liability of Landlord by reason of any injury to or interference with Tenant's business arising from the making of any repairs, alterations or improvements in or to
any portion of the Building or the Premises or in or to fixtures, appurtenances and equipment therein. Notwithstanding anything contained in subparagraphs (a) and (b) of this Paragraph 15,
Tenant shall maintain and repair at its sole cost and expense, and with maintenance contractors approved by Landlord, all non-base building facilities, including lavatory, shower, toilet, washbasin
and kitchen facilities and heating and air conditioning systems, including all plumbing connected to said facilities or systems installed by Tenant or on behalf of Tenant or existing in the Premises
at the time of delivery of possession of the Premises to Tenant by Landlord. The provisions of this paragraph shall not apply to the basic heating and air conditioning system provided by Landlord to
all tenants of the Building. 

15

   
        16.    Liens.    Tenant shall not permit any mechanic's, materialmen's or other liens to be filed against the real
property of which the Premises form a part, nor against Tenant's leasehold interest in the Premises. Landlord shall have the right at all reasonable times and in reasonable location to post and keep
posted on the Premises any notices which it deems necessary for protection from such liens. If any such liens are filed, Landlord may, without waiving its rights and remedies based on such breach of
Tenant and without releasing Tenant from any of its obligations, cause such liens to be released by any means it shall deem proper, including payment in satisfaction of the claim giving rise to such
lien. Tenant shall pay to Landlord at once, upon notice by Landlord, any sum paid by Landlord to remove such liens, together with interest at the maximum rate per annum permitted by from, from the
date of such payment by Landlord. 

        17.    Entry by Landlord.    Landlord reserves the right and shall at reasonable times have the right to enter the
Premises to inspect the same, to supply janitor service and any other service to be provided by Landlord to Tenant hereunder, to submit said Premises to prospective purchasers or tenants, to post
notices of nonresponsibility, to alter, improve or repair the Premises or any other portion of the Building, all without being deemed guilty of any eviction of Tenant and without abatement of rent,
and may, in order to carry out such purposes, erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, provided that the business of the
Tenant shall be interfered with as little as is reasonably practicable. Tenant hereby waives any claim for damages for any injury or inconvenience to or interference with Tenant's business, any loss
of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby. For each of the aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all
of the doors in, upon and about the Premises, excluding Tenant's vaults and safes, and Landlord shall have the means which Landlord may deem proper to open said doors in an emergency in order to
obtain entry to the Premises. It is understood and agreed that no provision of this Lease shall be construed as obligating Landlord to perform any repairs, alterations or decorations except as
otherwise expressly agreed herein to be performed by Landlord. 

        18.    Utilities and Services.    Provided that Tenant is not in default hereunder, Landlord agrees to furnish to the
Premises plumbing and electricity for twenty-four (24) hours per day, seven days a week, subject to the conditions and in accordance with the standards set forth in the Rules and Regulations as
defined in Paragraph 30 hereof, as may be amended in writing by Landlord from time to time during the term of this Lease and delivered to Tenant, reasonable quantities of electric current for normal
lighting and fractional horsepower office machines, non-attended elevator service, water for lavatory and drinking purposes, and from 8:00 A.M. to 6:00 P.M. on generally recognized business days heat
and air conditioning required in Landlord's judgment for the comfortable use and occupation of the Premises and janitorial service. Landlord shall not be liable for, and Tenant shall not be entitled
to any abatement or reduction of rent by reason of Tenant may order "overtime" heating or air conditioning provided Landlord has received reasonable notification of such a request, at a cost to Tenant
equal to
the prevailing rates for such services. Landlord's failure to furnish any of the foregoing when such failure is caused by accident, breakage, repairs, strikes, lockouts or other disturbances or labor
disputes of any character, or for any other causes. If Tenant requires or utilizes more water or electric power than is reasonably considered reasonable or normal for a bank by Landlord, Landlord may
at its option require Tenant to pay, as additional rent, the cost, as fairly determined by Landlord, incurred by such extraordinary usuage. In addition, if reasonably cost effective, Landlord may
install separate meter(s) for the Premises, at Tenant's sole expense, and Tenant thereafter shall pay all charges of the utility providing service. Tenant specifically undertakes to install and
maintain at Tenant's cost such fire protection equipment including, without limitation, emergency lighting as required by any governmental authority or insurer, and if so required, Tenant shall
appoint one of Tenant's personnel to coordinate with the fire protection facilities and personnel of Landlord. Any incandescent light bulbs used in the Premises shall be paid for by Tenant; upon
Tenant's request, Landlord's personnel shall install incandescent light bulbs or other Building nonstandard bulbs in the Premises; Tenant agrees to pay 

16

 

Landlord upon demand Landlord's cost for all such incandescent light bulbs installed or other Building nonstandard bulbs and the cost of Landlord's work of installation with respect thereto. Tenant
shall maintain, clean and repair any and all glass panels, windows and partitions in the Premises. Landlord shall not be responsible in any manner for said glass panels, windows or partitions. 

        19.    Bankruptcy.    If Tenant shall file a petition under any Chapter of the Bankruptcy Act as then in effect, or if
Tenant be adjudicated a bankrupt in involuntary bankruptcy proceedings and such adjudication shall not have been vacated within thirty (30) days from the date thereof, or if a receiver or trustee be
appointed of Tenant's property and the order appointing such receiver or trustee not be set aside or vacated within thirty (30) days after any entry thereof, or if Tenant shall assign Tenant's estate
or effects for the benefit of creditors, of if this Lease shall otherwise by operation of law devolve or pass to any person or persons other than Tenant, then and in any such event Landlord may, if
Landlord so elects, with or without notice of such election and with or without entry or action by Landlord, forthwith terminate this Lease, and notwithstanding any other provisions of this Lease,
Landlord, in addition to any and all rights and remedies allowed by law or equity, shall upon such termination be entitled to recover damages in the amount provided in Paragraph 25(b) below, and
neither Tenant nor any person claiming through or under Tenant or by virtue of any statute or order of any court shall be entitled to possession of the Premises but shall forthwith quit and surrender
the Premises to Landlord. Nothing herein contained shall limit or prejudice the right of Landlord to prove and obtain as damages by reason of any such termination an amount equal to the maximum
allowed by any statute or rule of law in effect at the time when, and governing the proceedings in which, such damages are to be proved, whether or not such amount be greater, equal to or less than
the amount of damages recoverable under the provisions of this Paragraph 19. 

        20.    Indemnification.    Tenant shall indemnify and hold Landlord harmless against and from any and all claims
arising from Tenant's use of the Premises or the conduct of its business or from any activity, work or thing done, permitted or suffered by Tenant, its agents, contractors, employees or invitees in or
about the Premises or elsewhere, and shall further indemnify and hold harmless Landlord against and from any and all claims arising from any breach or default in the performance of any obligations on
Tenant's part to be performed under the terms of this Lease, or arising from any act, neglect, fault or omission of Tenant, or of its agents, employees or invitees, and from and against all costs,
attorneys' fees, expenses and liabilities incurred in or about such claim or any action or proceeding brought thereon; and in case any action or proceeding be brought against Landlord by reason of any
such claim, Tenant upon notice from Landlord shall defend the same at Tenant's expense by counsel
approved in writing by Landlord. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to property or injury to persons in, upon or about the Premises from any
cause whatsoever except that which is caused by Landlord's negligence or willfulness. Tenant hereby waives all its claims in respect thereof against Landlord. 

        21.    Damage to Tenant's Property.    Notwithstanding the provisions of Paragraph 20 to the contrary, Landlord or its
agents shall not be liable for any damage to property entrusted to employees of the Building, nor for loss of or damage to any property by theft or otherwise, nor for any injury or damage to persons
or property resulting from fire, explosion, falling plaster or other masonry or glass, steam, gas, electricity, water or rain which may leak from any part of the Building or from the pipes, appliances
or plumbing works therein or from the roof, street or subsurface or from any other place or resulting from dampness or any other cause whatsoever. Landlord or its agents shall not be liable for
interference with the light or other incorporeal hereditaments. Tenant shall give prompt notice to Landlord in case of fire or accidents in the Premises or in the Building or of defects therein or in
the fixtures or equipment. 

        22.    Insurance.    

        (a)  Commencing
upon the date upon which Tenant shall commence or cause to be commenced any work of any type in, on or upon the Premises, and continuing during the entire
term thereof, 

17

 

Tenant shall obtain, maintain and keep in full force and effect, with Tenant, Landlord and the mortgagees of Landlord named as insureds therein as their respective interests may appear, the following
insurance: 

          (i)  Fire
insurance, including extended coverage, sprinkler leakage, vandalism and malicious mischief upon property of every description and kind owned by Tenant and located
in the Building or for which Tenant is legally liable or installed by or on behalf of Tenant, including, without limitation, furniture, fittings, installations, fixtures and any other personal
property, in an amount not less than the full replacement cost thereof. In the event that there shall be a dispute as to the amount which comprises full replacement cost, the decision of Landlord or
the mortgagees of Landlord shall be conclusive. 

        (ii)  Comprehensive
general liability insurance, coverage to include personal injury, bodily injury, broad form property damage, operations hazard, owner's protective
coverage, contractual liability, products and completed operations liability with a combined single limit of not less than the amount specified in Paragraph 1(u). 

        (iii)  Business
interruption insurance in such amounts as will reimburse Tenant for direct or indirect loss of earnings attributable to all perils commonly insured against by
prudent tenants or attributable to prevention of access to the Premises or to the Building as a result of such perils. 

        (v)  Any
other form or forms of insurance as the mortgagees of Landlord may reasonably require from time to time, in form, amounts and for insurance risks against which a
prudent tenant would protect itself. 

        (b)  All
policies shall be taken out with insurers acceptable to Landlord and in form satisfactory from time to time to Landlord. Tenant agrees that certificates of insurance
on the Landlord's standard form or, if required by Landlord or the mortgagees of Landlord, certified copies of each such insurance policy, will be delivered to Landlord as soon as practicable after
the placing of the required insurance, but in no event later than ten (10) days after Tenant takes possession of all or any part of the Premises, including possession taken under the last sentence of
Paragraph 4 hereof. All policies shall contain an undertaking by the insurers to notify Landlord and the mortgagees of Landlord in writing not less than thirty (30) days prior to any material change,
reduction in coverage, cancellation or other termination thereof. 

        (c)  In
the event of damage to or destruction of the Building entitling Landlord to terminate this Lease pursuant to Paragraph 23 hereof, if the Premises have also been
damaged, Tenant will immediately pay to Landlord all of its insurance proceeds, if any, relating to the Leasehold Improvements and alterations (but not to Tenant's trade fixtures, equipment, furniture
or other personal property of Tenant) in the Premises. If the termination of the Lease, at Landlord's election, is due to damage to the Building, and if the Premises have not been damaged, Tenant will
deliver to Landlord, in accordance with the provisions of this Lease, the alterations and the Premises. 

        (d)  Landlord
covenants and agrees that throughout the term is will insure the Building (excluding any property with respect to which Tenant is obliged to insure pursuant to
the provisions of subparagraph 22(a) above) against damage by fire and standard extended coverage perils and public liability insurance in such reasonable amounts with such reasonable deductibles as
would be carried by a prudent owner of a similar building in Southern California. Landlord may, but shall not be obliged to, take out and carry any other form or forms of insurance as it or the
mortgagees of Landlord any reasonably determine advisable. Notwithstanding any contributions by Tenant to the cost of insurance premiums, as provided herein, Tenant acknowledges that it has no right
to receive any proceeds from any such insurance policies carried by Landlord. Landlord will not carry insurance of any kind on Tenant's furniture or furnishings, or on any fixtures, equipment,
improvements or appurtenances of Tenant under this Lease; and Landlord shall not be obligated to repair any damage thereto or replace the same. 

18

   
        (e)  Tenant agrees that it will not keep, use, sell or offer for sale in or upon the Premises any article which may be prohibited by any insurance policy in force from time
to time covering the Building and Building Standard Work. In the event Tenant's occupancy or conduct of business in or on the Premises, whether or not Landlord has consented to the same, results in
any increase in premiums for the insurance carried from time to time by Landlord with respect to the Building, Tenant shall pay any such increase in premiums as additional rent within ten (10) days
after being billed therefor by Landlord. In determining whether increased premiums are a result of Tenant's use or occupancy of the Premises, a schedule issued by the organization computing the
insurance rate on the Building or the Leasehold Improvements showing the various components of such rate, shall be conclusive evidence of the several items and charges which make up such rate. Tenant
shall promptly comply with all reasonable requirements of the insurance authority or of any insurer now or hereafter in effect relating to the Premises. 

        (f)    If
any insurance policy carried by Landlord, as provided in subparagraph 22(d) above, shall be cancelled or cancellation shall be threatened or the coverage thereunder
reduced or threatened to be reduced in any way, by reason of the use of occupation of the Premises or any part thereof by Tenant or by any assignee or subtenant of Tenant or by anyone permitted by
Tenant to be upon the Premises, and if Tenant fails to remedy the condition giving rise to cancellation, threatened cancellation or reduction of coverage within forty-eight (48) hours after notice
thereof, Landlord may, at its option, either terminate this Lease or enter upon the Premises and attempt to remedy such condition, and Tenant shall forthwith pay the cost thereof to Landlord as
additional rent. Landlord shall not be liable for any damage or injury caused to any property of Tenant or of others located in the Premises as a result of such entry. In the event Landlord shall be
unable to remedy such condition, then Landlord shall have all of the remedies provided for in this Lease in the event of a default by Tenant. Notwithstanding the foregoing provisions of this
subparagraph 22(f), if Tenant fails to remedy as aforesaid, Tenant shall be in default of its obligations hereunder and Landlord shall have no obligation to attempt to remedy such default. 

        (g)  Any
policy or policies of fire, extended coverage or similar casualty insurance, which either party obtains in connection with the Premises, shall include a clause or
endorsement denying the insurer any rights of subrogation against the other party to the extent rights have been waived by the insured prior to the occurrence of injury or loss. Landlord and Tenant
waive any rights of recovery against the other for injury or loss due to hazards covered by insurance containing such a waiver of subrogation clause or endorsement to the extent of the injury or loss
covered thereby. 

        23.    Damage or Destruction.    

        (a)  In
the event the Building and/or the Building Standard Work is damaged by fire or other perils covered by Landlord's extended coverage insurance to an extent not
exceeding twenty-five percent (25%) of the full insurable value thereof and if the damage thereto is such that the Building and/or the Standard Work may be repaired, reconstructed or Building restored
within a period of ninety (90) days from the date of the happening of such casualty and Landlord will receive insurance proceeds sufficient to cover the cost of such repairs, Landlord shall commence
and proceed diligently with the work of repair, reconstruction and restoration and the Lease shall continue in full force and effect. If such work of repair, reconstruction and restoration is such as
to require a period longer than ninety (90) days or exceeds twenty-five percent (25%) of the full insurable value thereof, or if said insurance proceeds will not be sufficient to cover the cost of
such repairs, Landlord either may elect to so repair, reconstruct or restore the Building to its former condition and the Lease shall continue in full force and effect or Landlord may elect not to
repair, reconstruct or restore the Building and/or the Building Standard Work and the Lease shall in such event terminate. Notwithstanding the foregoing, if such work of repair, reconstruction and
restoration is such as to require a period longer than ninety (90) days, Tenant may elect to terminate this Lease. Terminations effectuated pursuant to this 

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paragraph shall be effective as of the date of such damage or destruction by notice provided to the non-terminating party within twenty (20) days of such damage or destruction. 

        (b)  Upon
any termination of this Lease under any of the provisions of this Paragraph 23, the parties shall be released thereby without further obligation to the other
from the date possession of the Premises is surrendered to Landlord, except for items which have theretofore accrued and are then unpaid. 

        (c)  In
the event of repair, reconstruction and restoration by Landlord as herein provided, the rental provided to be paid under this Lease shall be abated proportionately
with the degree to which Tenant's use of the Premises is impaired during the period of such repair, reconstruction or restoration. Tenant shall not be entitled to any compensation or damages for loss
in the use of the whole or any part of the Premises and/or any inconvenience or annoyance occasioned by such damage, repair, reconstruction or restoration. 

        (d)  Tenant
shall not be released from any of its obligations under this Lease except to the extent and upon the conditions expressly stated in this Paragraph 23.
Notwithstanding anything to the contrary contained in this Paragraph 23, should Landlord be delayed or prevented from repairing or restoring the damaged Premises within one (1) year after the
occurrence of such damage or destruction by reason of acts of God, war, governmental restrictions, inability to procure the necessary labor or materials, or other cause beyond the control of Landlord,
Landlord shall be relieved of its obligation to make such repairs or restoration and Tenant shall be released from its obligations under this Lease as of the end of said one (1) year period. 

        (e)  In
the event that damage is due to any cause other than fire or other peril covered by extended coverage insurance, Landlord may elect to terminate this Lease. 

        (f)    It
is hereby understood that if Landlord is obligated to or elects to repair or restore as herein provided, Landlord shall be obligated to make repairs or restorations
only of those portions of the Building and the Premises which were originally provided at Landlord's expense, and the repair and restoration of items not provided at Landlord's expense shall be the
obligation of Tenant. 

        (g)  Notwithstanding
anything to the contrary contained in this Paragraph 23, Landlord shall not have any obligations whatsoever to repair, reconstruct or restore the
Premises when the damage resulting from any casualty covered under this Paragraph 23 occurs during the last twelve (12) months of the term of this Lease or any extension hereof. 

        (h)  The
provisions of California Civil Code §1932, Subsection 2, and §1933, Subsection 4, are hereby waived by Tenant. 

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        24.    Eminent Domain.    In case the whole of the Premises, or such part thereof as shall substantially interfere
with Tenant's use and occupancy thereof, shall be taken for any public or quasipublic purpose by any lawful power or authority by exercise of the right of appropriation, condemnation or eminent
domain, or sold to prevent such taking, either party shall have the right to terminate this Lease effective as of the date possession is required to be surrendered to said authority. Tenant shall not
assert any claim against Landlord or the taking authority for any compensation because of such taking, and Landlord shall be entitled to receive the entire amount of any award without deduction for
any estate or interest of Tenant. In the event the amount of property or the type of estate taken shall not substantially interfere with the conduct of Tenant's business, Landlord shall be entitled to
the entire amount of the award without deduction for any estate or interest of Tenant, and Landlord at his option may terminate this Lease. If Landlord does not so elect, Landlord shall promptly
proceed to restore the Premises to substantially their same condition, but only to the extent of restoring Building Standard Work, and a proportionate allowance shall be made to Tenant for the rent
corresponding to the time during which, and to the part of the Premises of which, Tenant shall be so deprived on account of such taking and restoration. Nothing contained in this Paragraph shall be
deemed to give Landlord any interest in any award made to Tenant for the taking of personal property and fixtures belonging to Tenant. 

        25.    Defaults and Remedies.    

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

          (i)  The
abandonment of the Premises by Tenant. Abandonment is herein defined to include, but is not limited to, any absence by Tenant from the Premises for fifteen (15)
days or longer while in default of any provision of this Lease. 

        (ii)  The
failure by Tenant to make any payment of rent or additional rent or any other payment required to be made by Tenant hereunder, as and when due, where such failure
shall continue for a period of three (3) days after written notice thereof from Landlord to Tenant; provided, however, that any such notice shall be in lieu of, and not in addition to, any notice
required under California Code of Civil Procedure §1161. 

        (iii)  The
failure by Tenant to observe or perform any of the express or implied covenants or provisions of this Lease to be observed or performed by Tenant, other than as
specified in subparagraph 25(a)(i) or (ii) above, where such failure shall continue for a period of thirty (30) days after written notice thereof from Landlord to Tenant; provided, however,
that any such notice shall be in lieu of, and not in addition to, any notice required under California Code of Civil Procedure §1161; provided, further, that if the nature of Tenant's
default is such that more than thirty (30) days are reasonably required for its cure, than Tenant shall not be deemed to be in default if Tenant shall commence such cure within said thirty (30) day
period and thereafter diligently prosecute such cure to completion. 

        (iv)  (1) The
making by Tenant of any general assignment for the benefit of creditors; (2) the filing by or against Tenant of a petition to have Tenant adjudged
a bankrupt or a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within thirty (30) days);
(3) the appointment of a trustee or receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where possession is not
restored to Tenant within thirty (30) days; or (4) the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this
Lease where such seizure is not discharged within thirty (30) days. 

21

 

        (b)  In
the event of any such default by Tenant, in addition to any other remedies available to Landlord at law or in equity, Landlord shall have the immediate option to
terminate this Lease and all rights of Tenant hereunder. In the event that Landlord shall elect to so terminate this Lease, then Landlord may recover from Tenant: 

          (i)  the
worth at the time of award of any unpaid rent which had been earned at the time of such termination; plus 

        (ii)  the
worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such
rental loss that Tenant proves could have been reasonably avoided; plus 

        (iii)  the
worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that
Tenant proves could be reasonably avoided; plus 

        (iv)  any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform his obligations under this Lease or which in
the ordinary course of things would be likely to result therefrom, including, but not limited to attorneys' fees, broker's commissions and necessary renovation and repair of the Premises. 

        As
used in subparagraphs 25(b)(i) and (ii) above, the "worth at the time of award" is computed by allowing interest at the maximum rate permitted by law per annum. As used in
subparagraph 25(b)(iii) above, the "worth at the time of award" is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award
plus one percent (1%). 

        (c)  In
the event of any such default by Tenant, Landlord shall also have the right, with or without terminating this Lease, to re-enter the Premises and remove all persons
and property from the Premises; such property may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of Tenant. No re-entry or taking possession of the
Premises by Landlord pursuant to this subparagraph 25(c) shall be construed as an election to terminate this Lease unless a written notice of such intention be given to Tenant or unless the
termination thereof be decreed by a court of competent jurisdiction. 

        (d)  All
rights, options and remedies of Landlord contained in this Lease shall be construed and held to be cumulative, and no one of them shall be exclusive of the other,
and Landlord shall have the right to pursue any one or all of such remedies or any other remedy or relief which may be provided by law, whether or not stated in this Lease. No waiver of any default of
Tenant hereunder shall be implied from any acceptance by Landlord of any rent or other payments due hereunder or any omission by Landlord to take any action on account of such default if such default
persists or is repeated, and no express waiver shall affect defaults other than as specified in said waiver. The consent or approval of Landlord to or of any act by Tenant requiring Landlord's consent
or approval shall not be deemed to waive or render unnecessary Landlord's consent or approval to or of any subsequent similar acts by Tenant. 

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        26.    Assignment and Subletting.    Tenant shall not voluntarily assign or encumber its interest in this Lease or
in
the Premises, or sublease all or any part of the Premises, or allow any other person or entity to occupy or use all or any part of the Premises, without first obtaining Landlord's prior written
consent. Any assignment, encumbrance or sublease without Landlord's prior written consent shall be voidable, at Landlord's election, and shall constitute a default. For purposes hereof, in the event
Tenant is a partnership, a withdrawal or change of partners owning more than a fifty percent (50%) interest in the partnership, or if Tenant is a corporation, any transfer of fifty percent (50%) of
its stock, shall constitute a voluntary assignment and shall be subject to these provisions. No consent to and assignment, encumbrance or sublease shall constitute a further waiver of the provisions
of this paragraph. Tenant shall notify Landlord in writing of Tenant's intent to sublease, encumber or assign this Lease, the name of the proposed assignee or sublessee, information concerning the
financial responsibility of the proposed assignee or sublessee and the terms of the proposed assignment or subletting, and Landlord shall, within thirty (30) days of receipt of such written notice,
and additional information requested by Landlord concerning the proposed assignee's or sublessee's financial responsibility, elect one of the following: 

        (a)  Consent
to such proposed assignment, encumbrance or sublease; 

        (b)  Refuse
such consent, which refusal shall be on reasonable grounds; or 

        (c)  Elect
to terminate the Lease, or in the case of a partial sublease, terminate this Lease as to the portion of the Premises proposed to be sublet. 

As
a condition for granting its consent to any assignment, encumbrance or sublease, Landlord may require that the assignee or sublessee remit directly to Landlord on a monthly basis, all monies due to
Tenant by said assignee or sublessee. In the event that Landlord shall consent to an assignment or sublease under the provisions of this Paragraph 26, Tenant shall pay Landlord's processing
costs and attorneys' fees incurred in giving such consent. If for any proposed assignment or sublease Tenant receives rent or other consideration, either initially or over the term of the assignment
or sublease, in excess of the rent called for hereunder, or, in the case of the sublease of a portion of the Premises, in excess or such rent fairly allocable to such portion, after appropriate
adjustments to assure that all other payments called for hereunder are taken into account and deducting therefrom broker's commissions and out-of-pocket costs in connection with such assignment or
subletting, Tenant shall pay to Landlord as additional rent hereunder one-half (1/2) of the excess of each such payment of rent or other consideration received by Tenant promptly after
its receipt. Landlord's waiver or consent to any assignment or subletting shall not relieve Tenant from any obligation under this Lease. Occupancy of all
or part of the Premises by parent, subsidiary or affiliate companies of Tenant shall not be deemed an assignment or subletting. If Tenant requests Landlord's consent to any Assignment of this Lease or
any subletting of all or a portion of the Premises, Landlord shall have the right, to be exercised by giving written notice to Tenant within thirty (30) days of receipt by Landlord of the financial
responsibility information required by this Paragraph 26, to terminate this Lease effective as of the date Tenant proposes to assign this Lease or sublet all or a portion of the Premises.
Landlord's right to terminate this Lease as to all or a portion of the Premises on assignment or subletting shall not terminate as a result of Landlord' consent to the assignment of this Lease or the
subletting of all or a portion of the Premises, or Landlord's failure to exercise this portion with respect to any assignment or subletting. 

        Notwithstanding
the provisions of this paragraph 26 hereof, Tenant may assign or sublet the Premises, or any portion thereof, without Landlord's consent to any corporation which
controls, is controlled by or is under common control with Tenant or to any corporation resulting from the merger or consolidation with Tenant, or to any person or entity which acquires all the assets
of Tenant as a going concern of the business that is being conducted on the Premises, provided that said assignee assumes, in full, the obligations of Tenant under this Lease. 

23

 

        27.    Subordination.    Without the necessary of any additional document being executed by Tenant for the purpose of
effecting a subordination, and at the election of Landlord or any first mortgagee with a lien on the Building or any ground lessor with respect to the Building, this Lease shall be subject and
subordinate at all times to: (a) all ground leases or underlying leases which which may now exist, or hereafter be executed (provided that Tenant receive non-disturbance agreements reasonably
satisfactory to Tenant), affecting the Building or the land upon which the Building is situated or both, and (b) the lien of any mortgage or deed of trust which may now exist, or hereafter be
executed in any amount for which the Building, land, ground leases or underlying leases, or Landlord's interest or estate in any said items is specified as security. Notwithstanding the foregoing,
Landlord shall have the right to subordinate or cause to be subordinated any such ground leases or underlying leases or any such liens to this Lease. In the event that any ground lease or underlying
lease terminates for any reason or any mortgage or deed of trust is foreclosed or a conveyance in lieu of foreclosure is made for any reason, Tenant shall, notwithstanding any subordination, attorn to
and become the tenant of the successor in interest to Landlord and Tenant's right to possession of the Premises shall not be disturbed if Tenant is not in default and so long as Tenant shall pay the
rent and all other amounts required to be paid to Landlord pursuant to the terms hereof and observe and perform all of the provisions of this Lease, unless the Lease is otherwise terminated pursuant
to its terms. Tenant covenants and agrees to execute and deliver, upon demand by Landlord and in the form requested by Landlord, any additional documents evidencing the priority or subordination of
this Lease with respect to any ground leases or underlying leases or the lien of any such mortgage or deed of trust. Should Tenant fail to sign and return any such documents within ten (10) business
days of receipt, Tenant shall be in default, and Landlord may, at Landlord's option, terminate the Lease provided written notice of such termination is received by Tenant prior to Landlord's receipt
of such documents. 

        28.    Estoppel Certificate.    

        (a)  Within
ten (10) days following any written request which Landlord may make from time to time, Tenant shall execute and deliver to Landlord a statement, in the form of
Exhibit "F" attached hereto, certifying (i) the date of commencement of this Lease; (ii) the fact that this Lease is unmodified and in full force and effect (or, if there have
been modifications hereto, that this Lease is in full force and effect, as modified, and stating the date and nature of such modifications); (iii) the date to which the rental and other sums
payable under this Lease have been paid; (iv) the fact that there are no current defaults under this Lease by either Landlord or Tenant except as specified in Tenant's statement; and
(v) such other matters requested by Landlord. Landlord and Tenant intend that any statement delivered pursuant to this Paragraph 28 may be relied upon by any mortgagee, beneficiary,
purchaser or prospective purchaser of the Building or any interest therein. 

        (b)  Tenant's
failure to deliver such statement within such time shall be conclusive upon Tenant that (i) this Lease is in full force and effect, without modification
except as may be represented by Landlord, (ii) there are no uncured defaults in Landlord's performance, and (iii) not more than one (1) month's rental has been paid in advance.
Tenant's failure to deliver said statement to Landlord within ten (10) working days of receipt shall constitute a default under this Lease, and Landlord may, at Landlord's option, terminate
this Lease, provided written notice of such termination is received by Tenant prior to Landlord's receipt of said statement. 

        29.    Building Planning.    

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        30.    Rules and Regulations.    Tenant shall faithfully observe and comply with the "Rules and Regulations", a
copy
of which is attached hereto and marked Exhibit "G", and all reasonable and nondiscriminatory modifications thereof and additions thereto from time to time put into effect by Landlord. Landlord
shall not be responsible to Tenant for the violation or nonperformance by any other tenant or occupant of the Building of any of said Rules and Regulations. 

        31.    Conflict of Laws.    This Lease shall be governed by and construed pursuant to the laws of the State of
California. 

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

        33.    Surrender of Premises.    The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation
thereof, shall not work a merger, and shall, at the option of Landlord, operate as an assignment to it of any or all subleases or subtenancies. 

        34.    Professional Fees.    

        (a)  In
the event that either party should bring suit for the possession of the Premises, for the recovery of any sum due under this Lease, or because of the breach of any
provisions of this Lease, or for any other relief against the other hereunder, then all costs and expenses, including, without limitation, its actual professional fees such as appraisers',
accountants' and attorneys' fees, incurred by the prevailing party therein shall be paid by the other party, which obligation on the part of the other party shall be deemed to have accrued on the date
of the commencement of such action and shall be enforceable whether or not the action is prosecuted to judgment. 

        (b)  Should
Landlord be named as a defendant in any suit brought against Tenant in connection with or arising out of Tenant's occupancy hereunder, Tenant shall pay to
Landlord its costs and expenses incurred in such suit, including, without limitation, its actual professional fees such as appraisers', accountants' and attorneys' fees. 

        35.    Performance by Tenant.    All covenants and agreements by Tenant under any of the terms of this Lease shall be
performed by Tenant at Tenant's sole cost and expense and without any abatement of rent. If Tenant shall fail to pay any sum of money, other than Annual Basic Rent, required to be paid by it hereunder
or shall fail to perform any other act on its part to be performed hereunder, and such failure shall continue for ten (10) days after notice thereof by Landlord, Landlord may, without waiving or
releasing Tenant from obligations of Tenant, but shall not be obligated to, make any such payment or perform any such other act on Tenant's part to be made or performed as in this Lease provided. All
sums so paid by Landlord and all necessary incidental costs together with interest thereon at the maximum rate permissible by law, from the date of such payment by Landlord, shall be payable to
Landlord on demand. Tenant covenants to pay any such sums, and Landlord shall have (in addition to any other right or remedy of Landlord) the same rights and remedies in the event of nonpayment
thereof by Tenant as in the case of default by Tenant in the payment of the rent. Further, following each second consecutive late payment of rent (that is, the rent is not paid within three (3) days
after Tenant's receipt of notice of delinquency), Landlord shall have the option (a) to require that beginning with the first payment of rent due following the date such late payment was due,
rent shall no longer be paid in monthly installments but shall be payable three (3) months in advance; or (b) to require that Tenant provide Landlord with a further Security Deposit equal to
one month's rent, which additional Security Deposit shall be retained by Landlord and may be applied by Landlord in the manner provided in said Paragraph 7. If any monthly installment of Annual
Basic Rent is not received by Landlord within three (3) days after Tenant's receipt of notice of delinquency, it shall bear interest at the maximum rate permissible by law from the date on which it is
due until the date on which it is paid, regardless of whether or not a Notice of Default or Notice of Termination has been given by 

25

 

Landlord and, if such monthly installment of Annual Basic Rent is not received by Landlord by the 10th of the month for which it is due, or if any rental adjustment, or any other sum due under this
Lease is not paid by Tenant within ten (10) days of receipt of a statement therefor from Landlord, Tenant shall pay to Landlord an additional sum of five percent (5%) of the overdue amount as a late
charge. The parties to this Lease Agreement agree that this late charge represents a fair and reasonable estimate of costs that Landlord will incur by reason of any late payment as hereinabove
referred to by Tenant. Acceptance of any late charge shall not constitute a waiver of Tenant's default with respect to the overdue amount or prevent Landlord from exercising any of the other rights
and remedies available to Landlord under this Lease or law now or hereafter in effect. The aforesaid late charge shall be considered additional rent due from Tenant to Landlord under the terms of this
Lease. 

        36.    Mortgagee Protection.    In the event of any default on the part of Landlord, Tenant will give notice by
registered or certified mail to any beneficiary of a deed of trust or mortgage covering the Premises whose address shall have been furnished to Tenant, and shall offer such beneficiary or mortgagee a
reasonable opportunity to cure the default, including time to obtain possession of the Premises by power of sale or a judicial foreclosure, if such should prove necessary to effect a cure. 

        37.    Definition of Landlord.    The term "Landlord", as used in this Lease, so far as covenants or obligations on
the part of Landlord are concerned, shall be limited to mean and include only the owner or owners, at the time in question, of the fee title to, or a lessee's interest in a ground lease of the
Premises. In the event of any transfer, assignment or other conveyance or transfers of any such title or interest, Landlord herein named (and in the case of any subsequent transfers or conveyances,
the then grantor) shall be automatically freed and relieved from and after the date of such transfer, assignment or
conveyance of all liability as respects the performance of any covenants or obligations on the part of Landlord contained in this Lease thereafter to be performed and, without further agreement, the
transferee of such title or interest shall be deemed to have assumed and agreed to observe and perform any and all obligations of Landlord hereunder, during its ownership of the obligations of
Landlord hereunder, during its ownership of the Premises. After Tenant's occupancy of the Premises, Landlord may transfer its interest in the Premises without the consent of Tenant and such transfer
or subsequent transfer shall not be deemed a violation on Landlord's part of any of the terms and conditions of this Lease. 

        38.    Waiver.    The waiver by Landlord of any breach of any term, covenant or condition herein contained shall not
be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition herein contained, nor shall any custom or practice which may become established between the
parties in the administration of the terms hereof be deemed a waiver of, or in any way affect, the right of Landlord to insist upon the performance by Tenant in strict accordance with said terms. The
subsequent acceptance of rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than the failure of
Tenant to pay the particular rent so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such rent. 

        39.    Identification of Tenant.    If more than one person executes this Lease as Tenant, (a) each of them is
jointly and severally liable for the keeping, observing and performing of all of the terms, covenants, conditions, provisions and agreements of this Lease to be kept, observed and performed by Tenant,
and (b) the term "Tenant", as used in this Lease shall mean and include each of them jointly and severally and the act of or notice from, or notice or refund to, or the signature of, any one or
more of them, with respect to the tenancy or this Lease, including, but not limited to, any renewal, extension, expiration, termination or modification of this Lease, shall be binding upon each and
all of the persons executing this Lease as Tenant with the same force and effect as if each and all of them had so acted or given or received such notice or refund or so signed. 

26

   
        40.    Terms and Headings.    The words "Landlord" and "Tenant" as used herein shall include the plural as well as
the
singular. Words used in any gender include other genders. If there be more than one Tenant, the obligations hereunder imposed upon Tenant shall be joint and several. The paragraph headings of this
Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof. 

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

        42.    Time.    Time is of the essence with respect to the performance of every provision of this Lease in which time
or performance is a factor. 

        43.    Prior Agreements; Amendments.    This Lease contains all of the agreements of the parties hereto with respect
to any matter covered or mentioned in this Lease, and no prior agreement or understanding, oral or written, express or implied, pertaining to any such matter shall be effective for any purpose. No
provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. The parties acknowledge that all prior
agreements, representations and negotiations are deemed superseded by the execution of this Lease to the extent they are not incorporated herein. 

        44.    Separability.    Any provision of this Lease which shall prove to be invalid, void or illegal in no way
affects, impairs or invalidates any other provision hereof, and such other provisions shall remain in full force and effect. 

        45.    Recording.    Neither Landlord nor Tenant shall record this Lease nor a short form memorandum thereof without
the consent of the other. 

        46.    Consents.    Whenever the consent of either party is required hereunder, such consent shall not be unreasonably
withheld. 

        47.    Limitation on Liability.    The obligations of Landlord under this Lease do not constitute personal obligations
of the individual partners, directors, officers or shareholders of Landlord, and Tenant shall not seek recourse against the individual partners, directors, officers or shareholders of Landlord or any
of their personal assets for satisfaction of any liability in respect to this Lease. 

        48.    Exhibits and Riders.    Exhibits and riders, if any, signed by Landlord and Tenant and affixed to this Lease,
are a part hereof. 

        49.    Signs and Auctions.    Tenant shall not place any sign upon the Premises or the Building or conduct any auction
thereon without Landlord's prior written consent. 

        50.    Modification for Lender.    If, in connection with obtaining construction, interim or permanent financing for
the Building, the lender shall request reasonable modifications in this Lease as a condition to such financing, Tenant will not unreasonably withhold, delay or defer its consent thereto, provided that
such modifications do not increase the obligations of Tenant hereunder or materially adversely affect the Leasehold interest hereby created or Tenant's right hereunder. 

        51.    Accord and Satisfaction.    No payment by Tenant or receipt by Landlord of a lesser amount than the rent
payment herein stipulated shall be deemed to be other than on account of the rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as rent be deemed
an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such rent or pursue any other remedy provided in this Lease. 

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        Tenant
agrees that each of the foregoing covenants and agreements shall be applicable to any covenant or agreement either expressly contained in this Lease or imposed by any statute or
at common law. 

        52.    Financial Statements.    At any time during the term of this Lease, Tenant shall, upon ten (10) days' prior
written notice from Landlord, provide Landlord with a current financial statement and financial statements of the two (2) years prior to the current financial statement year, as available. Such
statement shall be prepared in accordance with generally accepted accounting principles and, if such is the normal practice of Tenant, shall be audited by an independent certified public accountant. 

        53.    Landlord's Signs.    Landlord may at any time place on any part of the Building except the Premises any
ordinary "For Sale" signs and any ordinary "For Lease" signs, all without rebate of rent or liability to Tenant. 

        54.    Quiet Enjoyment.    Landlord covenants and agrees with Tenant that upon Tenant paying the rent required under
this Lease and paying all other charges and performing all of the covenants and provisions aforesaid on Tenant's part to be observed and performed under this Lease, Tenant shall and may peaceably and
quietly have, hold and enjoy the Premises in accordance with this Lease. 

        55.    Tenant as Corporation.    If Tenant executes this Lease as a corporation, then Tenant and the persons executing
this Lease on behalf of Tenant represent and warrant that the individuals executing this Lease on Tenant's behalf are duly authorized to execute and deliver this Lease on its behalf in accordance with
a duly adopted resolution of the board of directors of Tenant, a copy of which is to be delivered to Landlord on execution hereof, and in accordance with the by-laws of Tenant and that this Lease is
binding upon Tenants in accordance with its terms. 

        56.    Non-Discrimination.    Tenant herein covenants by and for himself, his heirs, executors, administrators and
assigns, all persons claiming under or through him, and this Lease is made and accepted upon and subject to the following conditions: 

        That
there shall be no discrimination against or segregation of any person or group of persons, on account of sex, marital status, race, color, creed, religion, national origin, or
ancestry, in the leasing, subleasing, transferring, use, or enjoyment of the Premises nor shall Tenant, or any person claiming under or through him, establish or permit any such practice or practices
of discrimination or segregation with reference to the selection, location, number, use or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the Premises. 

        57.    Riders.    Rider 1 is attached to this Lease and is incorporated herein by this reference. In the event
of any conflict, the terms of the Rider shall control the terms of this Lease. 

28

 

        IN
WITNESS WHEREOF, the parties have executed this Lease the day and year first above written. 

	

TENANT:	
 	

LANDLORD:
	

ALLIANCE BANK
	
 	

 	

 
	 	 	 	BRAMALEA LIMITED, an Ontario, Canada corporation
	

By:	

[ILLEGIBLE]
	
 	

 	

 
	

 	

 	
 	

By:	

[ILLEGIBLE]

	Its:	Chairman
	 	 	 
	

 	

 	
 	

By:	

[ILLEGIBLE]

29

 
 

FIRST AMENDMENT TO LEASE    
  

        1.    Identification    

        This
First Amendment to Lease ("Amendment"), dated for identification purposes only November 1, 1985, is entered into by and between Bramalea Limited, an Ontario, Canada
corporation, as landlord ("Landlord"), and Alliance Bank, as tenant ("Tenant"). 

        2.    Recitals    

        2.1  Landlord
and Tenant entered into an office lease (the "Lease") on July 20, 1984. The Lease term commenced on February 1, 1985. 

        2.2  Landlord
and Tenant desire to amend the Lease in order to reflect a change in the monthly rental payments, upon the terms and conditions hereinafter set forth. 

        3.    Amendment    

        3.1  Paragraph 1(p)
of the Lease is hereby deleted in its entirety and the following is substituted in place thereof: 

"(p)
Annual Basic Rent: $349,395.00 per year payable monthly at $29,116.25 per month through October, 1985; then, $334,822.08 per year payable monthly at $27,901.84 per month from
November, 1985 through June, 1990; thereafter, $286,294.80 per year payable monthly at $23,857.90 per month for the remaining lease term, subject to adjustment as provided in the Rider." 

        3.2  All
other provisions of the Lease shall remain in full force and effect. 

        4.    Miscellaneous    

        4.1  The
subject headings of the sections of this Amendment are included for purposes of convenience only, and shall not affect the construction or interpretation of any of
its provisions. 

        4.2  This
Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 

        4.3  No
supplement, modification, or amendment of this Amendment shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this
Amendment shall be deemed, or shall constitute, a waiver of any other provisions, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless
executed in writing by the party making the waiver. 

        4.4  This
Amendment shall be binding on, and shall insure to the benefit of, the parties hereto and their respective heirs, legal representatives, successors, and assigns. 

        4.5  This
Amendment shall be construed in accordance with, and governed by, the laws of the State of California. 

        4.6  If
any action or proceeding is brought by any party with respect to this Amendment, the transaction referred to herein, or with respect to the interpretation,
enforcement or breach hereof, the prevailing party in such action shall be entitled to an award of all reasonable costs of litigation, including, without limitation, attorneys' fees, to be paid by the
losing party, in such amounts as may be determined by the court having jurisdiction of the action. 

 

        IN
WITNESS WHEREOF, the parties have executed this Amendment on the date and at the place set forth opposite their respective signatures below. 

	 	 	"LANDLORD"
	

 	
 	

BRAMALEA LIMITED,

an Ontario, Canada corporation
	

Executed on Dec. 12, 1985 at Costa Mesa, California	
 	

By:	

/s/ [ILLEGIBLE]

	

Executed on Dec. 12, 1985 at Costa Mesa, California	
 	

By:	

/s/ [ILLEGIBLE]

	

 	
 	

"TENANT"
	

 	
 	

ALLIANCE BANK
	

Executed on December 16, 1985 at Culver City, California	
 	

By:	

/s/ [ILLEGIBLE]

2

[Bramalea California, Inc. Letterhead] 

July
17, 1989 

Mr.
Curtis Reis

ALLIANCE BANK

100 Corporate Pointe

Culver City, California 90230 

Dear
Curtis: 

        Pursuant
to your Lease Rider No. 1, Section 13 this letter constitutes the Landlord's written notice regarding your option to lease additional space. 

        The
following suites shall become available as outlined below: 

	Suite Number
 
	 	Date
	 	Square Feet

	Suite 113	 	2/1/90	 	1,676 sq.ft.
	Suite 119	 	2/1/91	 	1,100 sq.ft.
	Suite 120	 	2/1/91	 	1,777 sq.ft.
	 	 	 	 	

	Total	 	4,553 sq.ft.

        Per the option language, Alliance Bank may lease the adjoining premises (Suite 119) or you may have the entire area (4553 sq.ft.). The terms and conditions of
such lease shall be as defined in Section 13 of the Rider. 

        Curtis,
I would appreciate your written response as soon as possible, however your lease allows up to sixty (60) days from the date above for you to exercise this option. 

        If
you should have any further questions please feel free to contact me. 

Sincerely, 

BRAMALEA
CALIFORNIA, INC. 

/s/
Patricia McMahill 

Patricia
L. McMahill

Asset Manager 

PM/tr

 
 

Amendment to Lease
  (Alliance Bank)    
  

        This Amendment is executed effective October 27, 1988 and made with respect to the Standard Form Office Lease, dated as of July 20, 1984 ("Lease"), by and between
Bramalea Limited, an Ontario, Canada corporation, as "Landlord", and Alliance Bank, as "Tenant." 

        FOR
GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which is acknowledged, Landlord and Tenant hereby amend and modify the Lease as follows: 

	1.
	The
number of "unassigned" Parking Spaces allocated to Tenant pursuant to Paragraph 3 of Rider No. 1 to the Lease (the "Rider") is reduced to twenty-seven (27).

	2.
	Tenant
hereby waives its option under Paragraph 13 of the Rider to lease that portion of the "Additional Space" known as Suite 105. 

        Except
as expressly provided herein, all of the terms and conditions of the Lease shall continue in full force and effect. 

	 	 	"LANDLORD"
	

 	
 	

Bramalea Limited, an Ontario, Canada corporation
	

 	
 	

By:	
 	

/s/  [ILLEGIBLE]      

	 	 	 	 	Its:	 	Authorized Signing Officer

	

 	
 	

"TENANT"
	

 	
 	

Alliance Bank
	

 	
 	

By:	
 	

/s/  CURTIS S. REIS      

	 	 	 	 	Its:	 	President

	

 	
 	

By:	
 	

 	
 	

 
	 	 	 	 	

	 	 	 	 	Its:	 	 
	 	 	 	 	 	 	

  

 
 

THIRD AMENDMENT TO LEASE    
  

        THIS THIRD AMENDMENT (this "Amendment"), dated December 14, 1992 for reference purposes only, is made by and between BRAMALEA LIMITED, an Ontario, Canada
corporation, Steven R. Layton, Receiver ("Landlord"), and ALLIANCE BANK ("Tenant"). 

 
 

RECITALS    
  

        A.    Landlord
and Tenant previously executed that certain Standard Form Office Lease dated July 20, 1984, covering premises known as Suite 110,
100 Corporate Pointe, Culver City, California; and subsequently executed a "First Amendment to Lease" dated November 1, 1985, and "Amendment to Lease" dated October 27, 1988 (the
Standard Form Office Lease, as amended by the "First Amendment to Lease" and "Amendment to Lease" to be collectively referred to as "Lease"). 

        B.    Effective
August 1, 1987, to July 31, 1992, the Lease required that the monthly installment of Annual Basic Rent was to be increased by Two Thousand One
Hundred Seventy-Three and 06/100 Dollars ($2,173.06) (the "First CPI Adjustment"); however, such increase was deferred, and neither billed by Landlord nor paid by Tenant. The total amount
deferred, with interest thereon accrued to September 30, 1992 at the legal rate of ten percent (10%) per annum, is One Hundred Seventy-Two Thousand five Hundred Ten and 66/100 Dollars
($172,510.66), which the parties affirm is presently due and owing. 

        C.    Effective
August 1, 1992, the Lease required that the monthly installment of Annual Basic Rent (as adjusted for increase in the CPI) be increased to Thirty-Two
Thousand Eight Hundred Four and 61/100 Dollars ($32,804.61) (the "Second CPI Adjustment"). Pursuant to the Lease, the Annual Basic Rent is scheduled for further increase on August 1,
1997 (the "Third CPI Adjustment"), as set forth in Rider No. 1 to the Lease. 

        D.    Tenant
represents that Tenant is currently operating under a Memorandum of Understanding from the FDIC (the "Memorandum"). 

        E.    Pursuant
to the Memorandum and in an effort to avoid paying the increased rent pursuant to the scheduled CPI Adjustments, Tenant has requested the following amendment to
the Lease. 

        F.    Landlord
has agreed to accommodate Tenant in so amending the Lease, subject to and on the terms and conditions set forth herein. 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows: 

1.    AMENDMENT CONTROLLING  

        1.1  This
Third Amendment is hereby made part of the Lease and in each instance in which the provisions, or any part thereof, of this Third Amendment shall contradict or be
inconsistent with the provisions, or any part thereof, of the Lease, or any other Exhibits thereto, as constituted without this Third Amendment, the provisions of this Third Amendment shall prevail
and govern and the contradicted or inconsistent terms of the Lease shall be deemed amended accordingly. All capitalized terms used herein shall have the meaning ascribed to such terms in the Lease,
unless otherwise indicated. 

2.    PAYMENT OF RENT  

        2.1  On
the "Closing Date" (as hereinafter defined), Tenant shall pay to Landlord One Million Five Hundred Seventy Thousand Four Hundred Thirty-Three and
00/100 Dollars ($1,570,433.00) in immediately available funds (the "Lump Sum Payment"). Notwithstanding the foregoing, any monthly 

1

 

installments of Annual Basic Rent received by Landlord for the period of August 1, 1992, to the Closing Date shall not constitute payment of Annual Basic Rent, but in lieu thereof shall be
deemed prepayment of the Lump Sum Payment, and the amount of the payment due upon the Closing Date
shall be reduced accordingly. The Closing Date shall be the date that each of the following conditions have been met: 

	(a)
	Tenant
has received a nondisturbance agreement in form and substance reasonably satisfactory to Tenant from each person or entity claiming a lien and security interest in the Lease or
the real property subject to the Lease ("Property");

	(b)
	Tenant
has received the Memorandum duly executed by Landlord as provided in Paragraph 7 of this Third Amendment; and

	(c)
	A
title company selected by Tenant causes to be issued to Tenant, at Tenant's expense, a policy of title insurance in the amount of the Lump Sum Payment, insuring Tenant of the
recordation of the Memorandum and that title to the Property is vested in Landlord, subject to no claims, liens or encumbrances which could result in priority over the Lease, as amended by this Third
Amendment, except for those trust deed holders which have executed and delivered to Tenant a nondisturbance agreement as provided in subparagraph (a), above. 

        2.2  The
Lump Sum Payment shall be first applied to fully satisfy Tenant's obligation to pay the First CPI Adjustment (with accrued interest thereon) in the total amount of
One Hundred Seventy-Two Thousand Five Hundred Ten and 66/100 Dollars ($172,510.66). 

        2.3  The
balance of the Lump Sum Payment, in the amount of One Million Three Hundred Ninety-Seven Thousand Nine Hundred Twenty-Two and 34/100 Dollars ($1,397,922.34)
shall be applied to fully satisfy, without discount or interest, Tenant's obligation to pay monthly installments of Annual Basic Rent as follows: 

	(a)
	For
the months of August, 1992, through January, 1996, forty-two (42) monthly installments of Thirty-Two Thousand Eight Hundred Four and 61/100 Dollars
($32,804.61), for a total of One Million Three Hundred Seventy-Seven Thousand Seven Hundred Ninety-Three and 62/100 Dollars ($1,377,793.62); and

	(c)
	A
portion of the installment of Annual Basic Rent for the month of February, 1996, in the amount of Twenty Thousand One Hundred Twenty-Eight and 72/100 Dollars
($20,128.72). 

        2.4  Notwithstanding
anything to the contrary contained in the Lease, Landlord hereby excuses Tenant from the payment of the balance of the installment of Annual Basic Rent
for the month of February, 1996, in the amount of Twelve Thousand Six Hundred Seventy-Five and 89/100 Dollars ($12,675.89) and, for the months of March, 1996, through
January, 2000, further excuses Tenant from the payment of the entire amount of the monthly installments of Annual Basic Rent and any adjustments
to Annual Basic Rent pursuant to the Second CPI Adjustment and Third CPI Adjustment; however Tenant shall continue to be obligated to pay, and shall pay as set forth in the Lease, all additional rent
and all other charges to be paid by Tenant under Paragraph 6 of the Lease (including, without limitation, payments for property taxes, operating costs, insurance, parking and repairs). 

        2.5  If,
under any federal or state law or regulation, because Tenant is declared insolvent or placed in receivership, or for any other reason, all or any portion of this
Third Amendment is declared invalid or illegal and Tenant or any third party makes claim upon all or any portion of the Lump Sum Payment, then this entire Third Amendment shall fail; however, Landlord
shall nevertheless retain a security interest in the Lump Sum Payment to secure any and all rents which are due or may become 

2

 

due in accordance with the Lease in the absence of this Third Amendment, Landlord to apply the Lump Sum Payment to such amounts as they are due or become due. 

        2.6  Nothing
in the Lease shall be deemed to limit the right of Tenant to set off against rents or other payments due Landlord all amounts owing as a result of any default or
rejection of the Lease by Landlord or any trustee in connection with any bankruptcy proceeding of Landlord. 

3.    RIGHTS UPON EXERCISE OF EMINENT DOMAIN  

        3.1  Notwithstanding
anything to the contrary contained in the Lease, if, prior to January 31, 2000, all or a portion of the Premises are taken for any public or
quasi-public purpose by any lawful power or authority by exercise of the right of appropriation, condemnation or eminent domain (or sold in lieu of such taking), then Tenant shall have the right to
bring a separate action or make a claim against the condemning authority, only, in any proceeding in which Landlord is a party for the diminished value of the leasehold estate from the date of taking
or sale to January 31, 2000. 

3

  

4. RIGHTS UPON DAMAGE OR DESTRUCTION  

        4.1  Notwithstanding
the provisions of Paragraph 23(a), Tenant shall not have the right to so terminate the Lease unless the damage, destruction, repair, reconstruction and
restoration contemplated under Paragraph 23 materially adversely affects Tenant's access to or use of the Premises for a period longer than the ninety (90) day period set forth in Paragraph 23(a). If
either Landlord or Tenant terminates the Lease prior to January 31, 2000, under the provisions of Paragraph 23 (as amended herein), then Landlord shall pay to Tenant an amount equal to the present
value as of the date of termination until January 31, 2000. The discount rate for determining the present value shall be the then current discount rate for the Federal Reserve Bank, plus one percent
(1%). 

        4.2  Notwithstanding
anything to the contrary contained in Paragraph 23(c) of the Lease, in the event of repair, reconstruction and restoration by Landlord prior to January
31, 2000, Landlord shall, in lieu of abatement of rent, pay to Tenant a proportionate amount of the monthly installments of Fair Market Rent (as defined below) for the Premises, based upon the degree
to which Tenant's use of the Premises is impaired during the period of such repair, reconstruction and restoration. 

        4.3  The
Fair Market Rent shall, for purposes of this Lease, mean the Annual Basic Rent (including any mid-term increases or indexing [but, less any conditionally
excused or free rent]) that Landlord has accepted in current transactions from new, non-expansion, non-renewal and non-equity tenants (not affiliated with Landlord) of comparable
credit-worthiness, for a comparable amount of space improved to a comparable extent, for a comparable use for a comparable term ("Comparable Transactions") in the Building. If there are not a
reasonably sufficient number of Comparable Transactions in the Building to reasonably determine Fair Market Rent, then such determination shall be made further considering what comparable landlords of
comparable buildings (which shall each be of comparable size, class and age, and with comparable vacancy) in the immediate vicinity have accepted in Comparable Transactions. Although determination of
Fair Market Rent shall be limited to the above definition, in comparison of Comparable Transactions appropriate consideration shall be given to any differences in the method of measuring the area of
the premises, the ratio of rentable to usable square area, whether rent is based upon usable or rentable area, and the type of escalation clause (e.g., whether increases in additional rent are
determined on a net or gross basis and, if gross, whether such increases are determined according to a dollar amount expense stop or a base year [and, if so, which period of time
constitutes the base year])." 

5. ASSIGNMENT AND SUBLETTING  

        5.1  Notwithstanding
anything to the contrary in Paragraph 26 of the Lease: 

	(a)
	Tenant
shall be entitled to retain any and all profits received prior to January 31, 2000, from the subleasing of the Premises or the assignment of this Lease; and

	(b)
	With
respect to any sublease or assignment proposed to commence prior to January 31, 2000, Landlord shall not have the right to exercise Landlord's right to terminate this Lease and
recapture all or any portion of the Premises, as otherwise set forth in Paragraph 26(c) and the unnumbered paragraph following Paragraph 26(c). 

6. SUBORDINATION AND NON-DISTURBANCE  

        6.1  Paragraph
27 of the Lease is hereby amended as follows: 

	(a)
	On
the fifth line following the word "building" the following is added: ", provided that Tenant receives nondisturbance agreements reasonably satisfactory to Tenant," and such
language is hereby deleted from the eighth line of said Paragraph 27; and 

4

 

	(b)
	The
next to the last sentence of Paragraph 27 is amended by adding the following at the end thereof: ", provided Tenant at all times receives non-disturbance agreements reasonably
satisfactory to Tenant from the party requesting subordination of the Lease." 

7. RECORDING.  

        7.1  Notwithstanding
anything to the contrary contained in Paragraph 45 of the Lease, Landlord and Tenant shall execute a memorandum of this Lease, as amended by this Third
Amendment, which Memorandum shall be in recordable form, and delivered to Tenant on or before the Closing Date for recording in the Official Records of Los Angeles County, California. 

8. PARKING  

        8.1  Notwithstanding
anything to the contrary contained in this Lease, Landlord shall have the right to reconfigure and redesign the parking lot; provided, however, that if
the reconfiguration or redesign will result in the relocation Tenant's short-term parking, then such relocation shall require Tenant's consent, which shall not be unreasonably withheld or delayed. 

9. EXTENSION OF TERM  

        9.1  Paragraph
4 of Rider No. 1 is hereby deleted. 

        9.2  The
Term of this Lease is hereby extended for a term of five (5) years to terminate January 31, 2005, upon the existing terms and conditions (as amended in this Third
Amendment), except that, effective February 1, 2000: 

	(a)
	If
the Fair Market Rent (as defined in Paragraph 4.3, above) for the Premises is greater than the sum of Two Hundred Forty-Four Thousand Three Hundred Ninety-Eight and 00/100 Dollars
($244,398.00), and any annual additional rent then payable pursuant to Paragraph 6 of the Lease (the "Effective Rent"), then the Annual Basic Rent during the extended term shall be the Fair Market
Rent.

	(b)
	If
the Effective Rent is greater than the Fair Market Rent, then the Annual Basic Rent during the extended term shall be Two Hundred Forty-Four Thousand Three Hundred Ninety-Eight and
00/100 Dollars ($244,398.00).

	(c)
	If
the Annual Basic Rent is determined, pursuant to subparagraph (a), above, to be the Fair Market Rent, then, effective February 1, 2000, Landlord's Contribution to Operating
Expenses shall be the actual Operating Expenses for the period of February 1, 2000 to January 31, 2001.

	(d)
	If
the Annual Basic Rent is determined, pursuant to subparagraph (b), above to be Two Hundred Forty-Four Thousand Three Hundred Ninety-Eight and 00/100 Dollars ($244,398.00), then
Landlord's Contribution to Operating Expenses shall remain as set forth in the Lease. 

10. MONUMENT  

        10.1 Tenant
acknowledges that, pursuant to the Corporate Pointe Master Sign Program, as approved by the City of Culver City, Landlord is required to remove the existing
double-sided "monument" sign located on Slauson Avenue, and relocate and replace it with a new sign. Tenant shall retain top-line billing on any such new sign, and Landlord shall remove any Building
landscaping which may obstruct the view of the sign by approaching motorists. 

5

 

11. NOTICE AND OPPORTUNITY TO CURE  

        11.1 Landlord
shall not be entitled to terminate the Lease or Tenant's right to possession on account of any curable default by Tenant unless Landlord shall have given
Tenant the notice and opportunity to cure provided in Paragraph 25 of the Lease. 

 
 

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE EXECUTED THIS THIRD AMENDMENT ON THE DATES INDICATED.    
  

 
 

ALLIANCE BANK    
  

	Date:	 	12-15-92
	 	By:	 	/s/  CURTIS S. REIS      

	 	 	 	 	Name:	 	Curtis S. Reis

	 	 	 	 	Title:	 	Chairman & President

	

Date:	
 	

12/15/92
	
 	

By:	
 	

/s/  ANDREW D. REID      

	 	 	 	 	Name:	 	Andrew D. Reid

	 	 	 	 	Title:	 	Senior Vice President

 
 

BRAMALEA LIMITED,
  STEVEN R. LAYTON, RECEIVER    
  

	Date:	 	 	 	 	 	 
	 	 	
	 	

6

[MANI BROTHERS LOGO]  

April
27, 2000 

Andrew
Reid

Alliance Bank

100 Corporate Pointe, Suite 110

Culver City, CA 90230 

Re:    Lease Amendment—100 Corporate Pointe, Suite 110

Dear
Andy, 

        Enclosed
please find an original, fully executed lease amendment for suite 110 at 100 Corporate Pointe. If you have any questions, please feel free to contact me directly. 

Sincerely,

/s/
Javier Hidalgo 

Javier
Hidalgo 

MANI BROTHERS REAL ESTATE INVESTMENT
  660 S. Figueroa St., Suite 700, Los Angeles, CA 90017 · Phone: (213) 430-0500 ·
 Fax: (213) 430-0501 · E-Mail: mail@manibrothers.com 

  

 
 

THE FOURTH AMENDMENT TO LEASE    
  

        THIS FOURTH AMENDMENT OF LEASE (this "FOURTH AMENDMENT") is dated as of February 1, 2000, between MANI BROTHERS 100 CORPORATE POINTE LLC, a California
limited liability company ("Landlord") and ALLIANCE BANK,
a                                        ,
("Tenant") who agree as follows: 

        1.    RECITALS.    This Fourth Amendment is made with reference to the following facts and objectives: 

        1.1  Bramalea
Limited, an Ontario, Canada corporation, as the predecessor-in-interest to Landlord, and Tenant entered into a Lease dated July 20, 1984 (the "Original
Lease"). A Rider no. 1 (the "Rider") was attached to the Original Lease, which Rider amended certain provisions of the Original Lease. The Rider and the Original Lease are together referred to
herein as the ("Original Lease"). The Original Lease was amended by that certain First Amendment dated November 1, 1985 (the "First Amendment"); and that certain Amendment dated
October 27, 1988 (the "Second Amendment"); and that certain Third Amendment dated December 14, 1992 (the "Third Amendment"). The Original Lease and the First Amendment, Second Amendment,
and Third Amendment are all in reference to those certain premises known as Suite 110 (the "Original Premises") located at 100 Corporate Pointe, Culver City, California (the "Building"). The
Original Lease and the First Amendment, Second Amendment, Third Amendment, and this Fourth Amendment are hereinafter referred to, together as (the "Lease"). 

        1.2  The
Landlord and Tenant desire to extend the term of the Lease for an additional period of five (5) years, expand the premises to include Suite 119 consisting of
approximately 1,096 rentable square feet ("Suite 119") and to amend the Lease in several additional respects as more fully set forth below. 

        1.3  Any
terms not otherwise defined in this Fourth Amendment shall have the meaning set forth in the Lease. If there shall be a conflict between the terms of this Fourth
Amendment and the terms of the Lease, the terms of this Fourth Amendment shall control. 

        2.    EFFECTIVE DATE OF FOURTH AMENDMENT.    This Fourth Amendment shall take effect on execution of this Fourth
Amendment. 

        3.    BASIC LEASE PROVISIONS:    Paragraph 1, "Terms and Definitions" of the Lease are hereby replaced in its entirety
by the following: 

	(a)	 	Landlord:	 	Mani Brothers 100 Corporate Pointe, LLC, a California limited liability company.
	

(b)	
 	

Landlord's Address:	
 	

660 South Figueroa Street, Suite 700, Los Angeles, CA 90017
	

(c)	
 	

Tenant:	
 	

Alliance Bank, a                        .
	

(d)	
 	

Building Address:	
 	

100 Corporate Pointe, Culver City, CA 90230
	

(e)	
 	

Suite Number:	
 	

Suite 110
	

(f)	
 	

Floor(s) upon which the Premises are located:	
 	

First
	

(g)	
 	

Premises:	
 	

Suite 110, consisting of approximately 11,638 rentable square feet and Suite 119, consisting of approximately 1,096 rentable square feet (collectively the "Premises").
	
 	
 	

 	
 	

 

1

 

	

(h)	
 	

Site:	
 	

The parcel or parcels of real property defined in Section 2(a) of the Lease.
	

(i)	
 	

Approximate Rentable Square Feet within the Premises:	
 	

12,734
	

(j)	
 	

Term:	
 	

Twenty-Five (25) Years
	

(k)	
 	

Building Standard Work:	
 	

Intentionally Deleted
	

(l)	
 	

Building Non-Standard Work:	
 	

Intentionally Deleted
	

(m)	
 	

Leasehold Improvements:	
 	

Landlord shall complete Leasehold Improvements for Suite 119 only, as set forth in Exhibit B—Tenant Work Letter attached to this Fourth Amendment.
	

(n)	
 	

Estimated Commencement Date:	
 	

Intentionally Deleted
	

(o)	
 	

Commencement Date:	
 	

February 1, 1985
	

 	
 	

 	
 	

(i) Landlord shall deliver possession of Suite 119 upon completion of the Leasehold Improvements, as set forth in Exhibit B attached to this Fourth Amendment.
	

 	
 	

Termination Date:	
 	

January 31, 2010 for the Premises
	

(p)	
 	

Annual Basic Rent:	
 	

$267,414.00, subject to annual increases and rental abatement as set forth in Sections 5, 6 and 7 of this Fourth Amendment.
	

(q)	
 	

Landlord's Contribution to Operating Expenses:	
 	

      

From the Effective Date of this Fourth Amendment until January 31, 2005, Landlord's Contribution to Operating Expenses shall be $5.57 per year per rentable square foot of the Premises. Commencing on February 1, 2005 until the Termination
Date, Landlord's Contribution to Operating Expenses shall be the actual Operating Expenses for the calendar year 2005.
	

(r)	
 	

Tenant's Percentage of Total Rentable Area:	
 	

11.6%
	

(s)	
 	

Security Deposit:	
 	

$0.00
	

(t)	
 	

Permitted Use:	
 	

Operation of a Commercial Bank and/or for general office purposes and purposes incident thereto.
	
 	
 	

 	
 	

 

2

 

	

(u)	
 	

Amount Required for Liability Insurance:	
 	

$2,000,000
	

(v)	
 	

Brokers:	
 	

N/A
	

(w)	
 	

Construction Area:	
 	

Intentionally Deleted
	

(x)	
 	

Number of Parking Spaces and Monthly Parking Rental:	
 	

     

Forty-Two (42) parking spaces of which up to eight (8) shall be used as reserved for Tenant's employees and ten (10) shall be reserved for Tenant's customers as further set forth in Section 10 of this Fourth Amendment.

        4.    TERM.    Article 3 of the Lease and Paragraph 1, 4 and 13 of the Rider as amended are hereby deleted and
replaced in its entirety to read in full as follows: 

        (a)  The
term of this Lease (the "Term") shall be deemed to have commenced on the Commencement Date of February 1, 1985, and shall terminate on January 31, 2010
(the "Termination Date"), unless terminated sooner as may be provided elsewhere herein, or unless extended pursuant to the terms of this Fourth Amendment. 

        (b)    Option to Renew.    Tenant shall have the right, to be exercised as hereinafter provided, to extend the Term of
this Lease for two (2) separate renewal periods (each such period being herein called a "Renewal Period") of five (5) years each upon the following terms and conditions: 

          (i)  There
has been no occurrence of any one or more events set forth in Article 25 of the Lease; 

3

  

        (ii)  Annual
Basic Rent for the Premises shall be one hundred percent (100%) of the highest Annual Basic Rental rate which Tenant was paying during the last year of the Term
or Renewal Period of this Lease increased by the CPI Increase outlined in Section 6 of this Fourth Amendment; 

        (iii)  Tenant
may from time to time elect to exercise any one or more options provided in this Fourth Amendment by giving notice of such election to Landlord at any time
during the Term on or before the date which is no earlier than twelve (12) months before the beginning of the Renewal Period for which the term is to be renewed by the exercise of such option and no
later than 6 months prior to the beginning of said Renewal Period; and 

        (iv)  If
Tenant elects to exercise any one or more of said options to renew, the Term shall be automatically extended for the Renewal Period covered by the option or options
so exercised without execution of an extension or renewal lease. The Term of any Renewal Period shall be on the same terms and conditions as are in effect under this Lease immediately preceding the
commencement of such Renewal Period, except that the Annual Basic Rent for each year of each Renewal Period shall be determined as provided in subparagraph (ii) below. 

        (c)    Tenant Right of First Offer.    The term "Available Space" shall mean any space on the first
(1st) or Second (2nd) floors of the Building which is not leased by Tenant and which Landlord intends to market to third parties. If at any time during the Term any
Available Space becomes available, Landlord shall give Tenant notice specifying (i) the space becoming available to Tenant for leasing; (ii) the projected date of availability of the
Available Space; (iii) the Annual Basic Rent for the Available Space; and (iv) such other matters as Landlord may deem appropriate for such notice ("Available Space Notice"). Within five
(5) business days after Tenant's receipt of any Available Space Notice from Landlord, Tenant shall have the First Election Right to expand the Premises to include the Available Space referred
to in the Available Space Notice. "First Election Right" shall mean Tenant's single, nonrecurring right, exercised by written notice to Landlord ("Tenant's Acceptance Notice"), setting forth Tenant's
intention to lease the Available Space as of the date of termination of Landlord's lease with the then existing tenant of such Available Space as of the date of termination of Landlord's lease with
the then existing tenant of such Available Space. However, such First Election Right shall not be valid if, as of the date of the Available Space Notice, Tenant is then in default under any term,
covenant or condition of this Lease, or has been in default more than three (3) times under any term, covenant or condition of this Lease. Tenant's failure to exercise its First Election Right within
such five (5) day period shall be deemed an irrevocable waiver of Tenant's First Election Right as to the particular transaction and Landlord may thereafter lease the Available Space covered by such
right to any other party upon such terms as the Landlord may determine, but the right shall continue to apply to all other Available Space on the first and second floors of the Building that becomes
"available" from time to time during the term of this Lease. Upon Tenant's acceptance of any Available Space, the parties hereto shall execute
and deliver an amendment to this Lease incorporating such available space into the Lease. Such space shall be deemed to be included in the Premises and shall be subject to all of the terms and
conditions of this Lease, except that the Annual Basic Rent shall be increased to reflect the amount set forth in the Landlord's Available Space Notice. Space shall be "available" when the lease of
such space has terminated and the prior tenant of such space has vacated and surrendered possession of the space to Landlord. Tenant shall be prohibited from exercising its First Election Right with
respect to less than all of the Available Space then becoming available. 

4

 

        5.    ANNUAL
BASIC RENT: Paragraph 2 of the Rider as amended is hereby deleted and the first sentence of Article 5(a) is hereby amended to read in full as
follows: 

        "Commencing
on February 1, 2000, Tenant shall pay to Landlord the Annual Basic Rent of $244,398.00. At such time as Landlord delivers Suite 119, the Annual Basic Rent shall
increase by $23,016.00. The Annual Basic Rent shall be paid in twelve (12) equal monthly installments, in advance, on the first day of each and every calendar month during the Term and Extension Term
and is subject to the rental concession set forth in Section 7 and the annual adjustments set forth in Section 6 of this Fourth Amendment." 

        6.    CONSUMER
PRICE INDEX ADJUSTMENT: Article 5(b) and Paragraph 1 of the Rider as amended are hereby deleted and a new Section 5(b) is added to the Lease
to read in full as follows: 

        "(b) Tenant
hereby agrees that on February 1, 2001 and on February 1st of each year during the Term thereafter (the "Adjustment Date"), the Annual Basic Rent shall be
increased by one hundred percent (100%) of the percentage increase (the "CPI Increase"), if any, shown by the "Consumer Price Index for all Urban Consumers Los
Angeles—Anaheim—Riverside Metropolitan Statistical District All Items Index (1982 - 84 = 100), (the "Index") published by the U.S. Department of Labor, Bureau of Labor
Statistics for the month which immediately precedes the Adjustment Date as compared with the Index January 2000, it being understood and agreed that in any event the CPI Increase shall not be less
than 2% nor more than 6% per annum for the period February 1, 2001 through January 31, 2005 and shall not be less than 2.5% nor more than 6% per annum for the period February 1,
2005 through the Termination Date. 

        The
amount of the CPI Increase shall be calculated by Landlord after the U.S. Department of Labor publishes the statistics upon which the amount of the increase is to be based. Upon its
calculation thereof, Landlord shall give written notice of the amount of the increase multiplied by the number of installments of rent due hereunder since the Adjustment Date and written evidence of
the index as well as the method of calculating the adjustment to Annual Basic Rent and Tenant shall pay such amount together with the Annual Basic Rent next becoming due hereunder at such increased
rate, which increased rate shall thereupon constitute Annual Basic Rent hereunder. The failure of Landlord to make the calculations required hereunder promptly shall not be deemed waiver of Landlord's
right to
adjust the rental due hereunder, nor shall it affect the obligations of Tenant to pay such increased Annual Basic Rent. If the Bureau of Labor Statistics ceases to use the 1984 average of 100 as the
basis of calculation for the Index or if a substantial change is made in the items or number of items contained in the Index, then the Index shall be adjusted to that figure that would have been
arrived at, had the change in the manner of computing a similar price index been in effect at the date of this Lease. If, at the time required for the determination of the amount of any increase in
rent payable under this Lease, the Index is no longer published or issued, a reliable governmental or other non-partisan publication evaluating the information therefore used in determining the Index
shall be used. 

        7.    RENT
CONCESSION: A new Section 5(d) is hereby added to the Lease to read in full as follows: 

5

  

        "(d) Landlord
agrees that the Annual Basic Rent due and payable for the month of March 2000 in the amount of $20,366.50 shall be abated, the Annual Basic Rent due and
payable for the month of April 2000 in the amount of $20,366.50 shall be abated and the Annual Basic Rent due and payable for the month of May 2000 shall be reduced by $12,764.90 as an inducement for
Tenant's execution of this Fourth Amendment." 

        8.    RENTAL ADJUSTMENT:    Article 6 of the Lease as amended is hereby amended to acknowledged that from the
Effective Date of this Fourth Amendment until January 31, 2005, Landlord's Contribution to the Operating Expense is $5.57 per year per rentable square foot of the Premises. Effective
February 1, 2005, Landlord's Contribution to the Operating Expenses shall be the actual Operating Expenses for the calendar year 2005 per rentable square foot of the Premises. 

        9.    SECURITY DEPOSIT:    Article 7 of the Lease and Paragraph 10 of the Rider are hereby amended to
acknowledge that Landlord does not hold a Security Deposit. 

        10.    PARKING:    Paragraph 3 of the Rider as amended is hereby deleted and replaced in its entirety to read
as follows: 

        "(a) Tenant
shall be entitled to rent forty-two (42) parking spaces with eight (8) of such spaces to be reserved for Tenant's employees ("Employee Spaces"), and ten (10) of
such spaces to be reserved for Tenant's customers ("Customer Spaces") and the balance of such spaces to remain unreserved ("Unreserved Spaces"). For purposes of this paragraph, Employee Spaces,
Customer Spaces and Unreserved Spaces are together referred to as the "Parking Spaces". Attached to this Fourth Amendment as Exhibit "A-1" is a layout of the Landlord's parking facility (the
"Parking Diagram"), designating the location of the Employee Spaces and the Customer Spaces. Landlord hereby reserves the right to change the location of the Employee Spaces and the Customer Spaces
upon fifteen (15) days prior written notice to Tenant only if required by any governmental authority having jurisdiction over the Premises. 

        (b)  The
Employee Spaces and the Unreserved Spaces for employees shall be subject to the "Building Prevailing Parking Rates" less $15.00 per month per space. There shall be
no charge for the Customer Spaces, except as set forth in subparagraph (f) below. The Building's Prevailing Parking Rates" shall mean the parking fees imposed by Landlord for other tenant's at
the Building, but no higher than the highest parking charges imposed at other Corporate Pointe office buildings. Tenant shall pay all taxes
imposed, if any, by any governmental authority in connection with the renting of the Parking Spaces or the use of the parking facility by Tenant. 

        (c)  In
addition to Tenant's right to rent the Parking Spaces, customers and invitees of Tenant shall be allowed access to the other non-reserved visitor parking areas in the
Building's parking facility, subject to payment of those fees charged by Landlord to the customers and invitees of other tenants in the Building. 

        (d)  The
use of the Parking Spaces shall be subject to the rules and regulations adopted by Landlord from time to time for the use of such facilities. The Parking Spaces
shall be used only for parking by vehicles no larger than normally sized passenger automobiles or pick-up trucks. Tenant shall not permit or allow any vehicles that belong to or are controlled by
Tenant or Tenant's employees, suppliers, shippers, customers or invitees to be loaded, unloaded or parked in areas other than those designated by Landlord for such activities. Landlord shall have the
right, without notice, in addition to other rights and remedies that it may have, to remove or tow away any vehicle parked in restricted areas and charge the cost thereof to Tenant, which cost shall
be immediately payable on demand by Landlord. 

        (e)  Tenant
shall have the right to erect "Reserved" signs in front of each of the Employee Spaces and each of the Customer Spaces. Landlord and Tenant shall work together to
monitor the 

6

 

use of the Employee Spaces and the Customer Spaces and to remove and tow away vehicles parked without entitlement in such spaces. 

        (f)    Landlord
shall provide Tenant with a validation stamp for validating the use of Customer Spaces, which are located within the gated portion of the parking area. The
three (3) Customer Spaces identified on the Parking Diagram as lying outside of the gated parking area shall not require validation. Landlord shall monitor the timed use of the validation system to
confirm that Tenant validates no more than seven (7) Customer Spaces at the same time. Tenant shall be obligated to pay Landlord for any parking charges incurred for validated Customer Spaces that
exceed seven (7) at the same time on any given day (the "Excess Customer Parking Charges"). The Excess Customer Parking Charges, if any, shall be billed to Tenant monthly, as additional rent, at the
then current parking rates charged by Landlord at the Building. 

        11.    NOTICES.    Article 9 of the Lease is hereby amended to acknowledge that as of the Effective Date of
this Fourth Amendment, any Notices to Landlord must be sent, transmitted or delivered, as the case may be, to the following address: 

Mani
Brothers

660 South Figueroa Street, Suite 700

Los Angeles, CA 90017

Attention: Joseph Mani 

        9.    BROKERS:    Article 10 of the Lease and Paragraph 12 of the Rider are hereby deleted and each
party warrants to the other party that no broker, agent, finder, person or entity, were instrumental in negotiating or consummating this Fourth Amendment, or might be entitled to a commission or
compensation in connection with the execution of this Fourth Amendment. Each party shall indemnify and hold harmless from any claim, damages, costs or expenses, including attorney's fees and costs,
resulting from any claim that may be asserted against the other party by any broker, agent, finder, person or entity which is not disclosed by such party to the other in writing prior to entering into
this Fourth Amendment, or who claims a right to compensation through such party. 

        10.    LEASEHOLD IMPROVEMENTS:    The Work Letter Agreement, appearing as Exhibit C of the Lease, and
Paragraph 5 of the Rider are hereby deleted and replaced in its entirety by Exhibit B—Tenant Work Letter attached to this Fourth Amendment. 

        11.    CONFIDENTIALITY:    Tenant agrees to keep the terms of the Lease and this Fourth Amendment confidential and
shall not disclose same to any other person not a party hereto without the prior written consent of Landlord; however, Tenant may disclose the terms hereof to Tenant's accountant's, attorneys,
managing employees, and others in privity with Tenant to the extent reasonably necessary for Tenant's business purposes. Tenant agrees that a breach of this Article will cause irreparable injury to
Landlord and Landlord shall be entitled, together with all other remedies in law or equity available to Landlord, to injunctive relief to restrain such breach. 

7

 

        Except
as hereinabove modified, the Lease shall remain in the full force and effect. 

         

	Mani Brothers 100 Corporate Pointe, LLC
 a California limited liability company	 	Alliance Bank

a
	 	 	 	 	 	 	

	

BY:	
 	

/s/    [ILLEGIBLE]	
 	

BY:	
 	

/s/    Curtis S. Reis
	 	 	
	 	 	 	

	

ITS:	
 	

Manager	
 	

ITS:	
 	

Chairman & President
	 	 	
	 	 	 	

	

 	
 	

 	
 	

BY:	
 	

/s/    [ILLEGIBLE]
	 	 	 	 	 	 	

	

 	
 	

 	
 	

ITS:	
 	

Executive Vice President
	 	 	 	 	 	 	

8

QuickLinks

Exhibit 10.7

TABLE OF CONTENTS

FIRST AMENDMENT TO LEASE

Amendment to Lease (Alliance Bank)

THIRD AMENDMENT TO LEASE

RECITALS

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE EXECUTED THIS THIRD AMENDMENT ON THE DATES INDICATED.

ALLIANCE BANK

BRAMALEA LIMITED, STEVEN R. LAYTON, RECEIVER

THE FOURTH AMENDMENT TO LEASEQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.8    
  

 
 

OFFICE BUILDING LEASE
  BETWEEN
  MAIN & MAC II, LP,
  LANDLORD
  AND
  ALLIANCE BANK,
  TENANT    
  

 
 
 

TABLE OF CONTENTS    
  

	 
	 	 
	 	Page

	1.	 	BASIC LEASE TERMS	 	1
	2.	 	PREMISES AND COMMON AREAS	 	3
	3.	 	TERM	 	4
	4.	 	POSSESSION	 	4
	5.	 	RENT	 	6
	6.	 	OPERATING EXPENSES; REAL PROPERTY TAXES AND ASSESSMENTS; UTILITIES COSTS	 	7
	7.	 	SECURITY DEPOSIT	 	8
	8.	 	USE	 	9
	9.	 	NOTICES	 	10
	10.	 	BROKERS	 	10
	11.	 	SURRENDER; HOLDING OVER	 	11
	12.	 	TAXES ON TENANT'S PROPERTY	 	12
	13.	 	ALTERATIONS	 	12
	14.	 	REPAIRS	 	14
	15.	 	LIENS	 	15
	16.	 	ENTRY BY LANDLORD	 	15
	17.	 	UTILITIES AND SERVICES	 	15
	18.	 	ASSUMPTION OF RISK AND INDEMNIFICATION	 	16
	19.	 	INSURANCE	 	17
	20.	 	DAMAGE OR DESTRUCTION	 	19
	21.	 	EMINENT DOMAIN	 	21
	22.	 	DEFAULTS AND REMEDIES	 	22
	23.	 	LANDLORD'S DEFAULT	 	25
	24.	 	ASSIGNMENT AND SUBLETTING	 	25
	25.	 	SUBORDINATION	 	28
	26.	 	ESTOPPEL CERTIFICATE	 	28
	27.	 	BUILDING PLANNING	 	28
	28.	 	RULES AND REGULATIONS	 	28
	29.	 	MODIFICATION AND CURE RIGHTS OF LANDLORD'S MORTGAGEES AND LESSORS	 	29
	30.	 	DEFINITION OF LANDLORD	 	29
	31.	 	WAIVER	 	29
	32.	 	PARKING	 	30
	33.	 	FORCE MAJEURE	 	 
	34.	 	SIGNS	 	 
	35.	 	LIMITATION ON LIABILITY	 	31
	36.	 	FINANCIAL STATEMENTS	 	32
	37.	 	QUIET ENJOYMENT	 	32
	38.	 	MISCELLANEOUS	 	32
	39.	 	EXECUTION OF LEASE	 	33
	40.	 	UNION LABOR	 	34
	ADDENDUM	 	 
	41.	 	OPTION TO EXTEND	 	 
	42.	 	OPTIONS	 	 
	43.	 	ATM	 	 
	44.	 	CONDITIONS PRECEDENT TO EFFECTIVENESS OF LEASE	 	 
	EXHIBITS:	 	 
	A-I	 	Site Plan	 	 
	A-II	 	Outline of Floor Plan of Premises	 	 
	B	 	Rentable Square Feet	 	 
	C	 	Work Letter Agreement	 	 

i

 

	D	 	Notice of Lease Term Dates and Tenant's Percentage	 	 
	E	 	Definition of Operating Expenses, Real Property Taxes and Assessments, and Utilities Costs	 	 
	F	 	Standards for Utilities and Services	 	 
	G	 	Estoppel Certificate	 	 
	H	 	Rules and Regulations	 	 

ii

 
 

OFFICE BUILDING LEASE    
  

        This OFFICE BUILDING LEASE ("Lease") is entered into as of the     day
of                     , 2001 by and between MAIN & MAC II, LP, a
Delaware limited partnership ("Landlord"), and ALLIANCE BANK, a California banking corporation ("Tenant"). 

        1.    BASIC LEASE TERMS.    For purposes of this Lease, the following terms have the following definitions and
meanings: 

        (a)    Landlord:    MAIN & MAC II, LP, a Delaware limited partnership. 

        (b)    Landlord's Address (For Notices):    

MAIN
& MAC II, LP

c/o Koll Development Company

4343 Von Karman Avenue

Newport Beach, California 92660

Attention: Property Management 1901 Main 

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

        (c)    Tenant:    ALLIANCE BANK, a California banking corporation. 

        (d)    Tenant's Address (For Notices):    Before the Commencement Date: 

Prior
to the Commencement Date: 

Alliance
Bank

5000 Birch Street, Suite 4900

Newport Beach, California 92660

Attention: Mr. Rick Mort and Mr. Dave Holmes 

After
the Commencement Date: 

Alliance
Bank

100 Corporate Pointe

Culver City, CA 90230

Attention: Andrew D. Reid 

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

        (e)    Development/Project:    The parcel(s) of real property located in the City of Irvine
(the "City"), County of Orange (the "County"), State of California ("State"), as shown on the site plan attached hereto as Exhibit "A-I" (the "Land")
upon which the Building described below, the multi-level parking garage which will serve the Building (the "Parking Structure") and appurtenant surface parking areas, landscaping, walkways and other
common areas are to be situated (herein, collectively, the "Development" or "Project"). 

        (f)    Building:    An eight (8) story office building containing approximately 172,250
Rentable Square Feet (subject to adjustment as provided in Exhibit "B"), with the street address of 1901 Main Street, Irvine, California 92614. 

        (g)    Premises:    Those certain 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 contains approximately 8,000 Rentable
Square Feet (6,838 Usable Square Feet) (subject to adjustment as provided in Exhibit "B" and Exhibit
"D"). 

        (h)    Tenant's Percentage:    Tenant's percentage of the Building on a Rentable Square Foot
basis, which initially is 4.644%, subject to final determination as provided in Exhibit "B" and Exhibit
"D". 

 

        (i)    Term:    Sixty (60) months. 

        (j)    Estimated Commencement Date:    January 1, 2002. 

                Estimated Expiration Date:    December 31, 2007. 

        (k)    Commencement Date:    The date on which the Term of this Lease will commence as
determined in accordance with the provisions of Exhibit "C" and as stated on Exhibit "D". 

        (l)    Initial Monthly Base Rent:    $20,400.00, subject to adjustment as provided in
Subparagraph 1(m) below and as otherwise provided in this Lease; provided, however, that so long as Tenant is not in Default under this Lease, Tenant shall receive a rent credit against its obligation
to pay Monthly Base Rent for the second, third and fourth full calendar months of the First Lease Year in the amount of $20,400 for each such calendar month, such that the net Monthly Base Rent due
from Tenant for the second, third and fourth full calendar months of the Term shall equal zero ($0.00). 

        (m)    Adjustment to Monthly Base Rent:    Monthly Base Rent will be adjusted in accordance
with the following: 

	MONTHS
	 	MONTHLY BASE RENT

	1 - 12	 	$20,400.00
	13 - 24	 	$21,200.00
	25 - 36	 	$21,600.00
	37 - 48	 	$22,000.00
	49 - 60	 	$22,400.00

        (n)    Expense Allowance:    The Expense Allowance as to Operating Expenses, the Expense
Allowance as to Real Property Taxes and Assessments, and the Expense Allowance as to Utilities Costs, means that portion, respectively, of (a) Tenant's Percentage of Operating Expenses, (b) Tenant's
Percentage of Real Property Taxes and Assessments, and (c) Tenant's Percentage of Utilities Costs, as described in Paragraph 6 below, which Landlord has included in Monthly Base Rent, which, for
purposes of this Lease, will be three (3) separate amounts as follows: (a) Tenant's Percentage of Operating Expenses for the 2002 calendar base year (hereinafter, the "Base Year"), (b) Tenant's
Percentage of Real Property Taxes and Assessments for the Base Year, and (c) Tenant's Percentage of Utilities Costs for the Base Year. 

        (o)    Security Deposit:    $24,640.00. 

        (p)    Tenant Improvements:    All tenant improvements installed or to be installed by
Landlord or Tenant within the Premises to prepare the Premises for occupancy pursuant to the terms of the Work Letter Agreement attached hereto as Exhibit
"C". 

        (q)    Tenant Improvement Allowance:    $30.00 per Usable Square Foot of the Premises, to be
applied as provided in the Work Letter Agreement attached hereto as Exhibit "C". 

        (r)    Permitted Use:    General office consistent with that of other office tenants in the
Project and retail bank branch use consistent with other comparable retail financial institutions operating within office tower locations in the Southern California area and no other use without the
express written consent of
Landlord, which consent Landlord may withhold in its sole and absolute discretion. Notwithstanding the foregoing, because Landlord has granted to Salomon Smith Barney Inc. certain exclusive rights
with respect to the retail sale of corporate securities and investment banking services on other floors of the Building, in no event shall Tenant be entitled to use the Premises primarily for the
retail sale of corporate securities or for investment banking purposes. The preceding sentence shall not preclude Tenant from engaging in the retail sale of corporate securities or performing
investment 

2

 

banking services so long as such activities are performed on an incidental basis and are ancillary to Tenant's business as a retail financial banking institution. 

        (s)    Parking:    Up to thirty-three (33), but no less than twenty (20) unreserved employee
parking spaces at $55.00 per space per month, subject to the terms and conditions of Paragraph 32 below and the Rules and Regulations regarding parking contained in Exhibit
"H". Tenant shall pay monthly rental for not less than twenty (20) unreserved parking spaces, whether or not Tenant actually uses all such spaces. In addition to the above, so
long as the Premises is being operated as a retail bank, Landlord shall provide to Tenant three (3) surface parking spaces adjacent to the Building which shall be marked for the exclusive use of
Tenant's ATM customers. Such reserved spaces shall be provided at no charge to Tenant during the initial Term, but may be subject to a reserved parking fee thereafter based upon the then fair market
rate for comparable reserved parking spaces in the Comparison Area. The exact location of such spaces shall be as indicated on Exhibit "A," or such
alternative parking spaces as are mutually approved by Tenant and Landlord. 

        (t)    Broker(s):    CB Richard Ellis, Inc. representing Landlord 

                                      Volt Commercial Brokerage
representing Tenant. 

        (u)    Guarantor(s):    None. 

        (v)    Interest Rate:    shall mean the greater of ten percent (10%) per annum or two percent
(2%) in excess of the prime lending or reference rate of Wells Fargo Bank N.A. or any successor bank in effect on the twenty-fifth (25th) day of the calendar month immediately prior to the event
giving rise to the Interest Rate imposition; provided, however, the Interest Rate will in no event exceed the maximum interest rate permitted to be charged by applicable law. 

        (w)    Exhibits:    A-1 through H, inclusive, which Exhibits are attached to this Lease and
incorporated herein by this reference. As provided in Paragraph 3 below, a completed version of Exhibit "D" will be delivered to Tenant after Landlord
delivers possession of the Premises to Tenant. 

        (x)    Addendum Paragraphs:    41 through 44, inclusive, which Addendum Paragraphs are
attached to this Lease and incorporated herein by this reference. 

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

        2.    PREMISES AND COMMON AREAS    

        (a)    Premises.    Landlord hereby leases to Tenant and Tenant hereby leases from Landlord
the Premises as improved or to be improved with the Tenant Improvements described in the Work Letter Agreement, a copy of which is attached hereto as Exhibit
"C". Notwithstanding the foregoing, subject to factors beyond Landlord's control and to the other provisions of this Lease, including without limitation, Subparagraph (d) below
and Paragraphs 14, 20, 21 and 33, Tenant shall have access to the Premises and entry access to the Building twenty-four (24) hours per day, seven (7) days per week year-round. 

        (b)    Mutual Covenants.    Landlord and Tenant agree that the letting and hiring of the
Premises is upon and subject to the terms, covenants and conditions contained in this Lease and each party covenants as a material part of the consideration for this Lease to keep and perform their
respective obligations under this Lease. 

        (c)    Tenant's Use of Common Areas.    During the Term of this Lease, Tenant shall have the
nonexclusive right to use in common with Landlord and all persons, firms and corporations conducting business in the Project and their respective customers, guests, licensees, invitees, subtenants,
employees and agents (collectively, "Project Occupants"), subject to the terms of this Lease, the Rules and 

3

 

Regulations referenced in Paragraph 32 below and all covenants, conditions and restrictions now or hereafter affecting the Project, the following common areas of the Building and/or the Project
(collectively, the "Common Areas"): 

        (i)    The
Building's common entrances, hallways, lobbies, public restrooms on multi-tenant floors, elevators, stairways and accessways, loading docks, ramps, drives and
platforms and any passageways and serviceways thereto, and the common pipes, conduits, wires and appurtenant equipment within the Building which serve the Premises (collectively, "Building Common
Areas"); and 

        (ii)  The
parking facilities of the Project, which serve the Building (subject to the provisions of Exhibit "H"), loading and
unloading areas, trash areas, roadways, sidewalks, walkways, parkways, driveways, landscaped areas, plaza areas, fountains and similar areas and facilities situated within the Project and
appurtenant to the Building which are not reserved for the exclusive use of any Project Occupants (collectively, "Project Common Areas"). 

        (d)    Landlord's Reservation of Rights.    Provided Tenant's use of and access to the
Premises and parking to be provided to Tenant under this Lease is not interfered with in an unreasonable manner, Landlord reserves for itself and for all other owner(s) and operator(s) of the Project
Common Areas and the balance of the Project, the right from time to time to: (i) install, use, maintain, repair, replace and relocate pipes, ducts, conduits, wires and appurtenant meters and equipment
above the ceiling surfaces, below the floor surfaces, within the walls and in the central core areas of the Building; (ii) make changes to the design and layout of the Project, including, without
limitation, changes to buildings, driveways, entrances, loading and unloading areas, direction of traffic, landscaped areas and walkways, and, subject to the parking provisions contained in Paragraph
32 and Exhibit "H," parking spaces and parking areas; and (iii) use or close temporarily the Building Common Areas, the Project Common Areas and/or
other portions of the Project while engaged in making improvements, repairs or alterations to the Building, the Project, or any portion thereof. 

        3.    TERM.    The term of this Lease ("Term") will be for the period designated in Subparagraph 1(l), commencing on
the Commencement Date, and ending on the last day of the month in which the expiration of such period occurs, including any extensions of the Term pursuant to any provision of this Lease or written
agreement of the parties. Each consecutive twelve (12) calendar month period of the Term of this Lease, commencing on the Commencement Date, will be referred to herein as a "Lease Year." If the
Commencement Date is on a date other than the first day of a calendar month, the first Lease Year shall include the partial month in which the Commencement Date occurs and the twelve (12) calendar
month period thereafter. Landlord's Notice of Lease Term Dates and Tenant's Percentage ("Notice"), in the form of Exhibit "D" attached hereto, will set
forth the Commencement Date, the date upon which the Term of this Lease shall end, the Rentable Square Feet within the Premises and the Building, and Tenant's Percentage and will be delivered to
Tenant after Landlord delivers possession of the Premises to Tenant. The Notice will be binding upon Tenant unless Tenant objects to the Notice in writing within five (5) business days of Tenant's
receipt of the Notice. 

        4.    POSSESSION.    

        (a)    Delivery of Possession.    Landlord agrees to deliver possession of the Premises to
Tenant in accordance with the terms of the Work Letter Agreement attached hereto as Exhibit "C", or, if no Work Letter Agreement is required for this
Lease, then Landlord agrees to deliver possession of the Premises to Tenant on the Commencement Date. Notwithstanding the foregoing, Landlord will not be obligated to deliver possession of the
Premises to Tenant (but Tenant will be liable for rent if Landlord can otherwise deliver the Premises to Tenant) until Landlord has received from Tenant all of the following: (i) a copy of this Lease
fully executed by Tenant and the guaranty of Tenant's obligations under this Lease, if any, executed by the Guarantor(s); (ii) the Security Deposit and the first installment of Monthly Base Rent;
(iii) executed copies of policies of insurance or certificates thereof 

4

 

as required under Paragraph 19 of this Lease; (iv) copies of all governmental permits and authorizations, if any, required in connection with Tenant's operation of its business within the
Premises; and (v) if Tenant is a corporation or partnership, such evidence of due formation, valid existence and authority as Landlord may reasonably require, which may include, without limitation, a
certificate of good standing, certificate of secretary, articles of incorporation, statement of partnership, or other similar documentation. 

        (b)    Condition of Premises.    Prior to the Commencement Date and in accordance with the
Work Letter Agreement attached hereto as Exhibit "C", Landlord and Tenant will jointly conduct a walk-through inspection of the Premises and will
jointly prepare a punch-list ("Punch-List") of items required to be installed by Landlord under the Work Letter Agreement which require finishing or correction. The Punch-List will not include any
items of damage to the Premises caused by Tenant's move-in or early entry. If permitted, which damage will be corrected or repaired by Landlord, at Tenant's expense or, at Landlord's election, by
Tenant, at Tenant's expense. Other than the items specified in the Punch-List, by taking possession of the Premises, Tenant will be deemed to have accepted the Premises in its condition on the date of
delivery of possession and to have acknowledged that, except for any undiscovered latent defects, the Tenant improvements have been installed as required by the Work Letter Agreement and that there
are no additional items needing work or repair. Landlord will cause all items in the Punch-List to be repaired or corrected within thirty (30) days following the preparation of the Punch-List or as
soon as practicable after the preparation of the Punch-List. Tenant acknowledged that, except as otherwise expressly set forth in this Lease, neither Landlord nor any agent of Landlord has made any
representation or warranty with respect to the Premises, the Building, the Project or any portions thereof or with respect to the suitability of same for the conduct of Tenant's business and Tenant
further acknowledges that Landlord will have no obligation to construct or complete any additional buildings or improvements within the Project. 

        (c)    Landlord Warranty.    Landlord represents and warrants to Tenant that to Landlord's
actual knowledge, as of the Commencement Date, neither the Premises, Building, Building Common Areas, Project or Project Common Areas will be in violation of any federal, State or local laws,
statutes, ordinances or regulations, including without limitation, the Americans With Disabilities Act of 1990. In addition, Landlord represents and warrants to Tenant that to Landlord's actual
knowledge, the parking areas serving the Building as currently configured (including the parking areas located within the Parking Structure) are sufficient to satisfy applicable code requirements as
of the date hereof for all existing uses at the Building as of the date hereof, including Tenant's permitted use for general office purposes and as a business banking branch office. 

If
after the exercise of diligent efforts, Tenant is denied a building permit for the Tenant Improvements solely as a result of insufficient parking at the Building, Tenant, as its sole and exclusive
remedy for any breach of the above warranty and/or Tenant's inability to obtain a building permit for the Tenant improvements from the City of Irvine ("City") due to insufficient parking at the
Building, shall, after giving Notice to Landlord, TIME BEING OF THE ESSENCE, of its inability to obtain a building permit, have the right to terminate this Lease upon thirty (30) days prior written
notice to Landlord. If the granting of a building permit is otherwise conditioned upon mitigating insufficient parking at the Building, then Tenant shall give Notice to the Landlord of the denial from
the City of the building permit along with any conditions which, if satisfied, would mitigate the insufficient parking at the Building and then Landlord shall have thirty (30) days to attempt to so
mitigate the insufficient parking to the City's satisfaction. If after such thirty (30) day period Landlord is unable to mitigate the insufficient parking, then Tenant, as its sole and exclusive
remedy for any breach of the above warranty and/or Tenant's inability to obtain a building permit for the Tenant improvements from the City shall have the right to terminate this Lease upon thirty
(30) days prior written notice to Landlord TIME
BEING OF THE ESSENCE. Notwithstanding the foregoing, if within thirty (30) days following receipt of such notice of termination from Tenant, the City's denial of a building permit is reversed or 

5

 

Landlord otherwise mitigates to the City's satisfaction any conditions regarding insufficient parking at the Building such that Tenant is not precluded from obtaining a building permit for the Tenant
improvements by reason of the parking at the Building, then Tenant's termination notice shall be deemed vitiated as if it had never been sent, and this Lease shall continue in full force and effect.
Otherwise, if the City's decision to deny Tenant's building permit is not reversed or any conditions with respect to parking at the Building are not satisfied within such thirty (30) day period such
that Tenant is not precluded from obtaining a building permit for the Tenant Improvements by reason of the parking at the Building, then this Lease shall be deemed terminated as of the thirtieth
(30th) day following Landlord's receipt of Tenant's notice of termination, in which event all rental or other sums paid in advance by Tenant shall be returned to Tenant. The party applying for the
building permit shall simultaneously send copies of all correspondence with the City to the other party. 

        5.    RENT.    

        (a)    Monthly Base Rent.    Tenant agrees to pay Landlord the Monthly Base Rent for the
Premises (subject to adjustment as hereinafter provided) in advance on the first day of each calendar month during the Term without prior notice or demand, except that Tenant agrees to pay the Monthly
Base Rent for the first month of the Term directly to Landlord concurrently with Tenant's delivery of the executed Lease to Landlord. If the Term of this Lease commences or ends on a day other than
the first day of a calendar month, then the rent for such period will be prorated in the proportion that the number of days this Lease is in effect during such period bears to the number of days in
such month. All rent must be paid to Landlord, without any deduction or offset, in lawful money of the United States of America, at the address designated by Landlord or to such other person or at
such other place as Landlord may from time to time designate in writing. Monthly Base Rent will be adjusted during the Term of this Lease as provided in Subparagraph l(m). 

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        (b)    Additional Rent.    All amounts and charges, if any, to be paid by Tenant hereunder, including, without
limitation, payments for Operating Expenses, Real Property Taxes and Assessments, Utilities Costs, insurance, repairs and parking, will be considered additional rent for purposes of this Lease, and
the word "rent" as used in this Lease will include all such additional rent unless the context specifically or clearly implies that only Monthly Base Rent is intended. 

        (c)    Late Payments.    Late payments of Monthly Base Rent and/or any item of additional rent will be subject to
interest and a late charge as provided in Subparagraph 22(f) below. 

6. OPERATING EXPENSES; REAL PROPERTY TAXES AND ASSESSMENTS; UTILITIES COSTS.  

        (a)    Covenant to Pay.    In addition to Monthly Base Rent, commencing after the Base Year
and continuing thereafter throughout the Term of this Lease, Tenant agrees to pay Landlord as additional rent in accordance with the terms of this Paragraph 6, the following amounts: (a) Tenant's
Percentage of Operating Expenses in excess of the Expense Allowance for Operating Expenses; (b) Tenant's Percentage of Real Property Taxes and Assessments in excess of the Expense Allowance for Real
Property Taxes and Assessments; and (c) Tenant's Percentage of Utilities Costs in excess of the Expense Allowance for Utilities Costs. "Operating Expenses," "Real Property Taxes and Assessments," and
"Utilities Costs" shall have the meanings set forth in Exhibit "E" hereto. As of date hereof, Landlord has no knowledge of any proposed capital
improvements to the Building, Building Common Areas, Project or Project Common Areas that may result in increased liability to Tenant for Tenant's Percentage of Operating Expenses. 

        (b)    Estimate Statement.    When Landlord makes a determination that Tenant must commence paying additional rent
pursuant to Paragraph 6(a) above (which determination may be made retroactively provided the calculations are made in accordance with the terms of this Lease applicable thereto), and from time to time
thereafter during the Term of this Lease, Landlord may deliver to Tenant a statement ("Estimate Statement") wherein Landlord will estimate some or all of the Operating Expenses, Real Property Taxes
and Assessments, and Utilities Costs for the then current calendar year and Tenant's Percentage thereof. If the estimate of Tenant's Percentage of Operating Expenses, Tenant's Percentage of Real
Property Taxes and Assessments, and/or Tenant's Percentage of Utilities Costs in the Estimate Statement exceeds Tenant's Expense Allowance with respect to Operating Expenses, Tenant's Expense
Allowance with respect to Real Property Taxes and Assessments, and/or Tenant's Expense Allowance with respect to Utilities Costs, Tenant agrees to pay Landlord, as additional rent, one-twelfth
(1/12th) of such excess each month thereafter, beginning with the next installment of rent due, until such time as Landlord issues a revised Estimate Statement; except that, concurrently with the
regular monthly rent payment next due following the receipt of each such
Estimate Statement, Tenant agrees to pay Landlord an amount equal to one monthly installment of such excess (less any applicable Operating Expenses, Real Property Taxes and Assessments, and/or
Utilities Costs already paid) multiplied by the number of months from the beginning of the applicable calendar year to the month of such rent payment next due, all months inclusive. In the event
Tenant's Percentage of Operating Expenses, Tenant's Percentage of Real Property Taxes and Assessments, and/or Tenant's Percentage of Utilities Costs for any calendar year is less than Tenant's Expense
Allowance with respect to Operating Expenses, Tenant's Expense Allowance with respect to Real Property Taxes and Assessments, and/or Tenant's Expense Allowance with respect to Utilities Costs,
respectively, Tenant will not be entitled to a credit against any rent, additional rent or Tenant's Percentage of future Operating Expenses, Tenant's Percentage of future Real Property Taxes and
Assessments, or Tenant's Percentage of future Utilities Costs payable hereunder. 

        (c)    Actual Statement.    Within one hundred twenty (120) days after the end of each calendar year during the Term
of this Lease following the Base Year, Landlord will deliver to Tenant a statement ("Actual Statement") which states the actual amounts incurred by Landlord for Operating Expenses, Real Property Taxes
and Assessments, and Utilities Costs for the preceding calendar year. If the Actual 

7

 

Statement reveals that Tenant's Percentage of any of the actual Operating Expenses, Real Property Taxes and Assessments, and/or Utilities Costs is more than the total additional rent paid by Tenant
individually for Operating Expenses, Real Property Taxes and Assessments, and/or Utilities Costs, respectively, on account of the preceding calendar year, Tenant agrees to pay Landlord the difference
in a lump sum within ten (10) days of receipt of the Actual Statement. If the Actual Statement reveals that Tenant's Percentage of any of the actual Operating Expenses, Real Property Taxes and
Assessments, and/or Utilities Costs is less than the additional rent paid by Tenant individually for Operating Expenses, Real Property Taxes and Assessments, and/or Utilities Costs, respectively, on
account of the preceding calendar year, Landlord will credit any overpayment toward the next monthly installments of Monthly Base Rent due under this Lease; provided however, if this Lease has expired
or terminated and Tenant was not in default of any monetary or material nonmonetary obligation under this Lease upon the occurrence thereof, then Landlord will promptly refund any such overpayment to
Tenant. 

        (d)    Miscellaneous.    Any delay or failure by Landlord in delivering any Estimate or Actual Statement pursuant to
this Paragraph 6 will not constitute a waiver of its right to require any payments by Tenant of additional rent nor will it relieve Tenant of its obligations pursuant to this Paragraph 6, except that
Tenant will not be obligated to make any payments based on such Estimate Statement or Actual Statement until ten (10) days after receipt of such Estimate Statement or Actual Statement. Even though the
Term has expired and Tenant has vacated the Premises, when the final determination is made of Tenant's Percentage of the actual Operating Expenses, actual Real Property Taxes and Assessments, and/or
actual Utilities Costs for the year in which this Lease terminates, Tenant agrees to promptly pay any increase due over the estimated amounts paid and, conversely, if Tenant was not in default of any
monetary or material nonmonetary obligation under this Lease upon such expiration, any overpayment made in the event said amounts decrease shall promptly be rebated by Landlord to Tenant. Such
obligation will be a continuing one which will survive the expiration or earlier termination of this Lease. Prior to the expiration or sooner termination of the Lease Term and Landlord's acceptance of
Tenant's surrender of the Premises, Landlord will have the right to estimate the actual Operating Expenses, actual Real Property Taxes and Assessments, and/or actual Utilities Costs for the then
calendar year and to collect from Tenant prior to Tenant's surrender of the Premises, the following: (i) Tenant's Percentage of any excess of such actual Operating Expenses, (ii) Tenant's
Percentage of any excess of such actual Real Property Taxes and Assessments, and/or (iii) Tenants' Percentage of any excess of such actual Utilities Costs over the respective estimated amounts thereof
paid by Tenant in such calendar year. 

        7.    SECURITY DEPOSIT.    Concurrently with Tenant's execution of this Lease, Tenant will deposit with Landlord the
Security Deposit designated in Subparagraph 1(o). The Security Deposit will be held by Landlord as security for the full and faithful performance by Tenant of all of the terms, covenants, and
conditions of this Lease to be kept and performed by Tenant during the Term hereof. If Tenant fully and faithfully performs its obligations under this Lease, including, without limitation,
surrendering the Premises upon the expiration or sooner termination of this Lease in compliance with Subparagraph 11(a) below, the Security Deposit or any balance thereof will be returned to Tenant
(or, at Landlord's option, to the last assignee of Tenant's interest hereunder) within (30) days following the expiration of the Lease Term or as required under applicable law, provided that Landlord
may retain the Security Deposit until such time as any outstanding rent or additional rent amount has been determined and paid in full. The Security Deposit is not, and may not be construed by Tenant
to constitute, rent for the last month or any portion thereof. If Tenant defaults with respect to any provisions of this Lease including, but not limited to, the provisions relating to the payment of
rent or additional rent, Landlord may (but will not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any rent or any other sum in default, or for the
payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant's default or to compensate Landlord for any loss or damage which Landlord may suffer by reason of
Tenant's 

8

 

default. If any portion of the Security Deposit is so used or applied, Tenant agrees, within ten (10) days after Landlord's written demand therefor, to deposit cash with Landlord in an amount
sufficient to restore the Security Deposit to its original amount and Tenant's failure to do so shall constitute a default under this Lease. Landlord is not required to keep Tenant's Security Deposit
separate from its general funds, and Tenant is not entitled to interest on such Security Deposit. Should Landlord sell its interest in the Premises during the Term hereof and deposit with the
purchaser thereof the then unappropriated Security Deposit funds, Landlord will be discharged from any prospective liability with respect to such Security Deposit. Tenant hereby waives the provisions
of Section 1950.7 of the California Civil Code and agrees that the provisions of this Section 7 shall govern the treatment of Tenant's Security Deposit in all respects for this Lease. 

8. USE.  

        (a)    Tenant's Use of the Premises.    The Premises may be used for the use or uses set forth
in Subparagraph 1(r) only, and Tenant will not use or permit the Premises to be used for any other purpose without the prior written consent of Landlord, which consent Landlord may withhold in its
sole and absolute discretion. Nothing in this Lease will be deemed to give Tenant any exclusive right to such use in the Building or the Project. 

        (b)    Compliance.    At Tenant's sole cost and expense, Tenant agrees to procure, maintain and hold available for
Landlord's inspection, all governmental licenses and permits required for the proper and lawful conduct of Tenant's business from the Premises, if any. Tenant agrees not to use, alter or occupy the
Premises or allow the Premises to be used, altered or occupied in violation of, and Tenant, at its
sole cost and expense, agrees to use and occupy the Premises and cause the Premises to be used and occupied in compliance with: (i) any and all laws, statutes, zoning restrictions, ordinances, rules,
regulations, orders and rulings now or hereafter in force and any requirements of any insurer, insurance authority or duly constituted public authority having jurisdiction over the Premises, the
Building or the Project now or hereafter in force, including, without limitation, the provisions of Title III of the Americans With Disabilities Act of 1990 (as currently or subsequently amended, the
"ADA") and all similar federal, state and local laws, rules, regulations, codes, and ordinances and any amendments thereof, with respect to Tenant's use, operation, alteration or improvement of the
Premises, (ii) the requirements of the Board of Fire Underwriters and any other similar body, (iii) the Certificate of Occupancy issued for the Building, and (iv) any recorded covenants,
conditions and restrictions and similar regulatory agreements, if any, which affect the use, occupation or alteration of the Premises, the Building and/or the Project. Tenant agrees to comply with the
Rules and Regulations referenced in Paragraph 28 below. Tenant agrees not to do or permit anything to be done in or about the Premises which will materially or unreasonably interfere with the
rights of other tenants or occupants of the Development, or injure or unreasonably annoy them, or use or allow the Premises to be used for any unlawful or unreasonably objectionable purpose. Tenant
agrees not to cause, maintain or permit any nuisance or waste in, on, under or about the Premises or elsewhere within the Development. Notwithstanding anything contained in this Lease to the contrary,
all transferable development rights related in any way to the Project are and will remain vested in Landlord, and Tenant hereby waives any rights thereto. 

        (c)    Hazardous Materials.    Except for ordinary and general office supplies typically used in the ordinary course
of business within office buildings, such as copier toner, liquid paper, glue, ink and common household cleaning materials (some or all of which may constitute "Hazardous Materials" as defined in this
Lease). Tenant agrees not to cause or permit any Hazardous Materials to be brought upon, stored, used, handled, generated, released or disposed of on, in, under or about the Premises, the Building,
the Common Areas or any other portion of the Project or the Development by Tenant, its agents, employees, subtenants, assignees, licensees, contractors or invitees (collectively, "Tenant's Parties"),
without the prior written consent of Landlord, which consent Landlord may withhold in its sole and absolute discretion. Upon the expiration or earlier termination of this Lease, Tenant agrees to 

9

 

promptly remove from the Premises, the Building, the Project and the Development, at its sole cost and expense, any and all Hazardous Materials, including any equipment or systems containing
Hazardous Materials which are installed, brought upon, stored, used, generated or released upon, in, under or about the Premises, the Building and/or the Project, Development or any portion thereof by
Tenant or any of Tenant's Parties. To the fullest extent permitted by law, Tenant agrees to promptly indemnify, protect, defend and hold harmless Landlord and Landlord's partners, officers, directors,
employees, agents, successors and assigns (collectively, "Landlord Indemnified Parties") from and against any and all claims, damages, judgments, suits, causes of action, losses, liabilities,
penalties, fines, expenses and costs (including, without limitation, clean-up, removal, remediation and restoration costs, sums paid in settlement of claims, attorneys' fees, consultant fees and
expert fees and court costs) which arise or result from the presence of Hazardous Materials on, in, under or about the Premises, the Building or any other portion of the Project or Development and
which are caused by Tenant or any of Tenant's Parties. Tenant agrees to promptly notify Landlord of any release by any Tenant Party of Hazardous Materials at the Premises, the Building or any other
portion of the Project or Development which Tenant becomes aware of during the Term of this Lease. In the event of any release of Hazardous Materials caused or permitted by Tenant or any of Tenant's
Parties, Landlord shall have the right, but not the obligation, to cause Tenant to immediately take all steps Landlord deems necessary or appropriate to remediate such release and prevent any similar
future release to the satisfaction of Landlord and Landlord's mortgagee(s). As used in this Lease, the term "Hazardous
Materials" shall mean and include any chemical, substance, material, controlled substance, object, condition, waste, living organism or combination thereof, whether solid, semi-solid, liquid or
gaseous, which is or may be hazardous to human health or safety or to the environment due to its radioactivity, ignitability, corrosivity, reactivity, explosivity, toxicity, carcinogenicity,
mutagenicity, phytotoxicity, infectiousness or other harmful or potentially harmful properties or effects, including, without limitation, tobacco smoke, petroleum and petroleum products, asbestos,
radon, polychlorinated biphenyls (PCBs), refrigerants (including those substances defined in the Environmental Protection Agency's "Refrigerant Recycling Rule," as amended from time to time) and all
of those chemicals, substances, materials, controlled substances, objects, conditions, wastes, living organisms or combinations thereof which are now or become in the future listed, defined or
regulated in any manner by any Environmental Law based upon, directly or indirectly, such properties or effects. As used herein, "Environmental Laws" means any and all federal, state or local
environmental, health and/or safety-related laws, regulations, standards, decisions of courts, ordinances, rules, codes, orders, decrees, directives, guidelines, permits or permit conditions,
currently existing and as amended, enacted, issued or adopted in the future which are or become applicable to Tenant, the Premises or the Development. The provisions of this Subparagraph 8(c) shall
survive the expiration of earlier termination of this Lease. 

        (d)    Exclusive Use.    Landlord covenants and agrees that so long as Tenant is not in default under this Lease and
the Premises is being operated as a retail commercial bank, Landlord shall not lease any of the space remaining on the ground floor of the Building to any person or entity for purposes of operating a
retail commercial bank. 

        9.    NOTICES.    Any notice required or permitted to be given hereunder must be in writing and may be given by
personal delivery (including delivery by overnight courier or an express mailing service) or by mail, if sent by registered or certified mail. Notices to Tenant shall be sufficient if delivered to
Tenant at the address designated in Subparagraph 1(d) and notices to Landlord shall be sufficient if delivered to Landlord at the address designated in Subparagraph 1(b). Either party may specify a
different address for notice purposes by written notice to the other. 

        10.    BROKERS.    The parties acknowledge that the broker(s) who negotiated this Lease are stated in Subparagraph
1(t). Each party represents and warrants to the other, that, to its knowledge, no other broker, agent or finder (a) negotiated or was instrumental in negotiating or consummating this 

10

 

Lease on its behalf, and (b) is or might be entitled to a commission or compensation in connection with this Lease. Landlord and Tenant each agree to promptly indemnify, protect, defend and
hold harmless the other from and against any and all claims, damages, judgments, suits, causes of action, losses, liabilities, penalties, fines, expenses and costs (including attorneys' fees and court
costs) resulting from any breach by the indemnifying party of the foregoing representation, including, without limitation, any claims that may be asserted by any broker, agent or finder undisclosed by
the indemnifying party. The foregoing mutual indemnity shall survive the expiration or earlier termination of this Lease. 

        11.    SURRENDER; HOLDING OVER.    

        (a)    Surrender.    The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, shall
not constitute a merger, and shall, at the option of Landlord, operate as an assignment to Landlord of any or all subleases or subtenancies. Upon the expiration or earlier termination of this Lease,
Tenant agrees to peaceably surrender the Premises to Landlord broom clean and in good order, repair and condition, ordinary wear and tear and casualty damage (if this Lease is terminated as a result
thereof pursuant to Paragraph 20) excepted, with all of Tenant's personal property and Alterations (as defined in Paragraph 13) removed from the Premises to the extent required under
Paragraph 13 and all damage caused by such removal repaired as required by Paragraph 13. In addition, unless otherwise agreed to in writing by Landlord, upon the expiration or earlier
termination of this Lease, Tenant shall, at Tenant's sole cost and expense, (i) remove all computer and telephone wiring and cabling installed in the Premises by or for Tenant and
(ii) repair any damage caused by such removal. If any such wiring and/or cabling is not so removed pursuant to this Subparagraph 11(a), then at Landlord's option, either such wiring
and/or cabling shall become the property of Landlord (without payment by Landlord) or Landlord may remove such wiring and/or cabling at Tenant's expense (without limiting Landlord's other remedies
available under this Lease or applicable law). Prior to the date Tenant is to actually surrender the Premises to Landlord, Tenant agrees to give Landlord reasonable prior notice of the exact date
Tenant will surrender the Premises so that Landlord and Tenant can schedule a walk-through of the Premises to review the condition of the Premises and identify the Alterations and personal property
which are to remain upon the Premises and which items Tenant is to remove, as well as any repairs Tenant is to make upon surrender of the Premises. The delivery of keys to any employee of Landlord or
to Landlord's agent or any employee thereof alone will not be sufficient to constitute a termination of this Lease or a surrender of the Premises. 

        (b)    Holding Over.    Tenant will not be permitted to hold over possession of the Premises after the expiration or
earlier termination of the Term without the express written consent of Landlord, which consent Landlord may withhold in its sole and absolute discretion. If Tenant holds over after the expiration or
earlier termination of the Term, Landlord may, at its option, treat Tenant as a tenant at sufferance only, and such continued occupancy by Tenant shall be subject to all of the terms, convenants and
conditions of this Lease, so far as applicable, except that the Monthly Base Rent for any such holdover period shall be equal to the greater of (i) two hundred percent (200%) 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. Acceptance by Landlord of rent after such expiration or earlier termination will not result in a renewal of this Lease. The foregoing provisions of this Paragraph 11 are in
addition to and do not affect Landlord's right of re-entry or any rights of Landlord under this Lease or as otherwise provided by law. If Tenant fails to surrender the Premises upon the expiration of
this Lease in accordance with the terms of this Paragraph 11 despite demand to do so by Landlord, Tenant agrees to promptly indemnify, protect, defend and hold Landlord harmless from all
claims, damages, judgments, suits, causes of action, losses, liabilities, penalties, fines, expenses and costs (including attorneys' fees and costs), including, without limitation, costs and expenses
incurred by Landlord in returning the Premises to the condition in which Tenant was to surrender it and claims made by any succeeding tenant 

11

 

founded on or resulting from Tenant's failure to surrender the Premises. The provisions of this Subparagraph 11(b) will survive the expiration or earlier termination of this Lease. 

        12.    TAXES ON TENANT'S PROPERTY.    Tenant agrees to pay before delinquency, all taxes and assessments (real and
personal) levied against (a) any personal property or trade fixtures placed by Tenant in or about the Premises (including any increase in the assessed value of the Premises based upon the value
of any such personal property or trade fixtures); and (b) any Tenant improvements or Alterations in the Premises (whether installed and/or paid for by Landlord or Tenant) to the extent such
items are assessed at a valuation higher than the valuation at which tenant improvements conforming to Landlord's building standard tenant improvements are assessed. If any such taxes or assessments
are levied against Landlord or Landlord's property, Landlord may, after written notice to Tenant (and under proper protest if requested by Tenant) pay such taxes and assessments, in which event Tenant
agrees to reimburse Landlord all amounts paid by Landlord within ten (10) business days after demand by Landlord; provided, however, Tenant, at its sole cost and expense, will have the right, with
Landlord's cooperation, to bring suit in any court of competent jurisdiction to recover the amount of any such taxes and assessments so paid under protest. 

        13.    ALTERATIONS.    After installation of the initial Tenant Improvements for the Premises pursuant to  Exhibit "C", Tenant
may, at its sole cost and expense, make alterations, additions, improvements and decorations (including, without limitation,
wall coverings, window coverings, floor coverings and other finishes) to the Premises (collectively, "Alterations") subject to and upon the following terms and conditions: 

        (a)    Prohibited Alterations.    Tenant may not make any Alterations which (i) affect
any area outside the Premises; (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; (iv) in the reasonable opinion of Landlord, lessen the value of the Building; (v) will violate or
require a change in any occupancy certificate applicable to the Premises; or (vi) will not comply with Landlord's then current Building Standard Criteria, which Tenant may review at the Project
management office during its normal business hours. 

        (b)    Landlord's Approval.    Before proceeding with any Alterations which are not prohibited
in Subparagraph 13(a) above, Tenant must first obtain Landlord's written approval of the plans, specifications and working drawings for such Alterations, which approval Landlord will not
unreasonably withhold or delay; provided, however, Landlord's prior approval will not be required for any such Alterations which are not prohibited by Subparagraph 13(a) above and which cost
less than Two Thousand Five Hundred Dollars ($2,500) as long as (i) Tenant delivers to Landlord notice and a copy of any final plans, specifications and working drawings for any such
Alterations at least ten (10) days prior to commencement of the work thereof, and (ii) the other conditions of this Paragraph 13 are satisfied, including, without limitation, conforming
to Landlord's rules, regulations and insurance requirements which govern contractors. Landlord's approval of plans, specifications and/or working drawings for Alterations 

12

   
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. In approving any Alterations, Landlord reserves the right to require Tenant to increase its Security Deposit to provide Landlord with additional reasonable security for the
removal of such Alterations by Tenant as may be required by this Lease. 

        (c)    Contractors.    Alterations 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. Before proceeding with any Alterations, 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: (i) all necessary governmental permits and approvals for the commencement and completion
of such Alterations; and (ii) if requested by Landlord, a completion and lien indemnity bond, or other surety, reasonably satisfactory to Landlord for such Alterations. Throughout the performance of
any Alterations, 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
this Lease. 

        (d)    Manner of Performance.    All Alterations 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, statutes, ordinances, rules, regulations, orders
and rulings 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, 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. 

        (e)    Ownership.    The Tenant improvements, including, without limitation, all affixed sinks, dishwashers, microwave
ovens and other fixtures, and all Alterations will become the property of Landlord and will remain upon and be surrendered with the Premises at the end of the Term of this Lease; provided, however,
Landlord may, by written notice delivered to Tenant concurrently with Landlord's approval of the final working drawings for any Alterations, identify those Alterations which Landlord will require
Tenant to remove at the end of the Term of this Lease. Landlord may also require Tenant to remove Alterations which Landlord did not have the opportunity to approve as provided in this
Paragraph 13. If Landlord requires Tenant to remove any Alterations, Tenant, at its sole cost and expense, agrees to remove the identified Alterations on or before the expiration or earlier
termination of this Lease and repair any damage to the Premises caused by such removal (or, at Landlord's option, Tenant agrees to pay to Landlord all of Landlord's costs of such removal and repair). 

        (f)    Plan Review.    Tenant agrees to pay Landlord, as additional rent, the reasonable costs of professional
services and costs for general conditions of Landlord's third party consultants if utilized by Landlord (but not Landlord's "in-house" personnel) for review of all plans, specifications and working
drawings for any Alterations, within ten (10) business days after Tenant's receipt of invoices either from Landlord or such consultants. In addition, Tenant agrees to pay Landlord, within ten (10)
business days after completion of any Alterations, a fee to cover Landlord's costs of supervising and administering the installation of such Alterations, in the amount of eight percent (8%) of the
cost of such Alterations, but in no event less than Two Hundred Fifty Dollars ($250.00). 

        (g)    Personal Property.    All articles of personal property owned by Tenant or installed by Tenant at its expense
in the Premises (including Tenant's business and trade fixtures, vaults, safes, safe deposit boxes, furniture, movable partitions and equipment [such as telephones, copy machines, computer
terminals, refrigerators and facsimile machines]) will be and remain the property of Tenant, and must be removed by Tenant from the Premises, at Tenant's sole cost and expense, on or
before the expiration 

13

 

or earlier termination of this Lease. Tenant agrees to repair any damage caused by such removal at its cost on or before the expiration or earlier termination of this Lease. 

        (h)    Removal of Alterations.    If Tenant fails to remove by the expiration or earlier termination of this Lease all
of its personal property, or any Alterations 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 Alterations as abandoned and, at Tenant's sole cost and expense, and in addition to Landlord's other rights and
remedies under this 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 proceeds of any sale of any such property to any amounts due to Landlord under this 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. 

        (i)    Union Labor.    All provisions of this Lease which permit Tenant to engage contractors and/or subcontractors
shall in each case be subject to Paragraph 40 of this Lease which requires the use of union labor. 

        14.    REPAIRS.    

        (a)    Landlord's Obligations.    Landlord agrees to repair and maintain the structural portions of the Building and
the plumbing, heating, ventilating, air conditioning, elevator and electrical systems installed or furnished by Landlord, unless such maintenance and repairs are (i) attributable to items
installed in Tenant's Premises which are above standard interior improvements (such as, for example, custom lighting, special HVAC and/or electrical panels or systems, kitchen or restroom facilities
and
appliances constructed or installed within Tenant's Premises) or (ii) caused in part or in whole by the act, neglect or omission of any duty by Tenant, its agents, servants, employees or
invitees, in which case Tenant will pay to Landlord, as additional rent, the reasonable cost of such maintenance and repairs. Landlord will not be liable for any failure to make any such repairs or to
perform any maintenance unless such failure shall persist for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant. Except as provided in
Paragraph 20, Tenant will not be entitled to any abatement of rent and Landlord will not have any liability by reason of any injury to or interference with Tenant's business arising from the
making of any repairs, alterations or improvements in or to any portion of the Building or the Premises or in or to fixtures, appurtenances and equipment therein. Tenant waives the right to make
repairs at Landlord's expense under any law, statute, ordinance, rule, regulation, order or ruling (including, without limitation, to the extent the Premises are located in California, the provisions
of California Civil Code Sections 1941 and 1942 and any successor statutes or laws of a similar nature). 

        (b)    Tenant's Obligations.    Tenant agrees to keep, maintain and preserve the Premises in first class condition
and repair and, when and if needed, at Tenant's sole cost and expense, to make all repairs to the Premises and every part thereof. Any such maintenance and repairs will be performed by Landlord's
contractor, or at Landlord's option, by such contractor or contractors as Tenant may choose from an approved list to be submitted by Landlord. Tenant agrees to pay all costs and expenses incurred in
such maintenance and repair within seven (7) days after billing by Landlord or such contractor or contractors. Tenant agrees to cause any mechanics' liens or other liens arising as a result of work
performed by Tenant or at Tenant's direction to be eliminated as provided in Paragraph 15 below. Except as provided in Subparagraph 14(a) above, Landlord has no obligation to alter, remodel, improve,
repair, decorate or paint the Premises or any part thereof. 

14

 

        (c)    Tenant's Failure to Repair.    If Tenant refuses or neglects to repair and maintain the Premises properly as
required hereunder to the reasonable satisfaction of Landlord, Landlord, at any time following ten (10) days from the date on which Landlord makes a written demand on Tenant to effect such repair and
maintenance, may enter upon the Premises and make such repairs and/or maintenance, and upon completion thereof, Tenant agrees to pay to Landlord as additional rent, Landlord's costs for making such
repairs plus an amount not to exceed ten percent (10%) of such costs for overhead, within ten (10) days of receipt from Landlord of a written itemized bill therefor. Any amounts not reimbursed by
Tenant within such ten (10) day period will bear interest at the Interest Rate until paid by Tenant. 

        (d)    Union Labor.    All provisions of this Lease which permit Tenant to engage contractors and/or subcontractors
shall in each case be subject to Paragraph 40 of this Lease which requires the use of union labor. 

        15.    LIENS.    Tenant agrees not to permit any mechanic's, materialmen's or other liens to be filed against all or
any part of the Project, the Building or the Premises, nor against Tenant's leasehold interest in the Premises, by reason of or in connection with any repairs, alterations, improvements or other work
contracted for or undertaken by Tenant or any other act or omission of Tenant or Tenant's agents,
employees, contractors, licensees or invitees. At Landlord's request, Tenant agrees to provide Landlord with enforceable, conditional and final lien releases (or other evidence reasonably requested by
Landlord to demonstrate protection from liens) from all persons furnishing labor and/or materials at the Premises. Landlord will have the right at all reasonable times to post on the Premises and
record any notices of nonresponsibility which it deems necessary for protection from such liens. If any such liens are filed, Tenant will, at its sole cost, promptly cause such liens to be released of
record or bonded so that it no longer affects title to the Project, the Building or the Premises. If Tenant fails to cause any such liens to be so released or bonded within ten (10) days after filing
thereof, such failure will be deemed a material breach by Tenant under this Lease without the benefit of any additional notice or cure period described in Paragraph 22 below, and Landlord may,
without waiving its rights and remedies based on such breach, and without releasing Tenant from any of its obligations, cause such liens to be released by any means it shall deem proper, including
payment in satisfaction of the claims giving rise to such liens. Tenant agrees to pay to Landlord within ten (10) days after receipt of invoice from Landlord, any sum paid by Landlord to remove such
liens, together with interest at the Interest Rate from the date of such payment by Landlord. 

        16.    ENTRY BY LANDLORD.    Subject to the reasonable security requirements and procedures of Tenant, and at all
times mutually convenient to Landlord and Tenant upon not less than twenty-four (24) hours notice (except in emergency situations), Landlord and its employees and agents may enter any portion of the
Premises (except for the vault or similar secure spaces) to inspect the same, to supply janitorial service and any other service to be provided by Landlord to Tenant hereunder, to show the Premises to
prospective purchasers or tenants, to post notices of nonresponsibility, and/or to repair the Premises as permitted or required by this Lease. In exercising such entry rights, Landlord will endeavor
to minimize, as reasonably practicable, the interference with Tenant's business. Landlord may, in order to carry out such purposes, erect scaffolding and other necessary structures where reasonably
required by the character of the work to be performed. Landlord will at all times have and retain a key with which to unlock all doors in the Premises, excluding Tenant's vaults and safes or similarly
secure spaces. Landlord will have the right to use any and all means which Landlord may reasonably deem proper to open said doors in an emergency in order to obtain entry to the Premises. Any entry to
the Premises obtained by Landlord by any of said means, or otherwise, will not be construed or deemed to be a forcible or unlawful entry into the Premises, or an eviction of Tenant from the Premises.
Landlord will not be liable to Tenant for any damages or losses for any entry by Landlord that complies with the foregoing. 

        17.    UTILITIES AND SERVICES.    Throughout the Term of the Lease so long as the Premises are occupied, Landlord
agrees to furnish or cause to be furnished to the Premises the utilities and 

15

 

services described in the Standards for Utilities and Services attached hereto as Exhibit "F", subject to the conditions and in accordance with the
standards set forth therein. Landlord may require Tenant from time to time to provide Landlord with a list of Tenant's employees and/or agents which are authorized by Tenant to subscribe on behalf of
Tenant for any additional services which may be provided by Landlord. Any such additional services will be provided to Tenant at Tenant's cost. Landlord will not be liable to Tenant for any failure to
furnish any of the foregoing utilities and services if such failure is caused by all or any of the following: (i) accident, breakage or repairs; (ii) strikes, lockouts or other labor
disturbance or labor dispute of any character; (iii) governmental regulation, moratorium or other governmental action or inaction; (iv) inability despite the exercise of reasonable
diligence to obtain electricity, water or fuel; (v) service interruptions or any other unavailability of utilities resulting from causes beyond Landlord's control, including, without
limitation,
any utility service provider initiated "brown-out" or "black-out"; or (vi) any other cause beyond Landlord's reasonable control. In addition, in the event of any stoppage or interruption of
services or utilities, Tenant shall not be entitled to any abatement or reduction of rent (except as expressly provided in Subparagraphs 20(f) or 21(b) if such failure results from a damage or taking
described therein), no eviction of Tenant will result from such failure and Tenant will not be relieved from the performance of any covenant or agreement in this Lease because of such failure. In the
event of any failure, stoppage or interruption thereof, Landlord agrees to diligently attempt to resume service promptly. If Tenant requires or utilizes more water or electrical power than is
considered reasonable or normal by Landlord, Landlord may at its option require Tenant to pay, as additional rent, the cost, as fairly determined by Landlord, incurred by such extraordinary usage
and/or Landlord may install separate meter(s) for the Premises, at Tenant's sole expense, and Tenant agrees thereafter to pay all charges of the utility providing service and Landlord will make an
appropriate adjustment to Tenant's Utilities Costs calculation to account for the fact Tenant is directly paying such metered charges, provided Tenant will remain obligated to pay its proportionate
share of Utilities Costs subject to such adjustment. 

        18.    ASSUMPTION OF RISK AND INDEMNIFICATION.    

        (a)  Assumption of Risk.    Tenant, as a material part of the consideration to Landlord, hereby agrees that neither
Landlord nor any Landlord Indemnified Parties (as defined in Subparagraph 8(c) above) will be liable to Tenant for, and Tenant expressly assumes the risk of and waives any and all claims it may have
against Landlord or any Landlord Indemnified Parties with respect to, (i) any and all damage to property or injury to persons in, upon or about the Premises (except that which arises solely
from the negligent or intentionally wrongful act or omission of Landlord or any Landlord employees, agents or contractors), (ii) any damage caused by other tenants or persons in or about the
Building or the Project, or caused by quasi-public work, (iii) any damage to property entrusted to employees of the Building (except for damage resulting from the negligent or intentionally
wrongful act or omission of said employees), (iv) any loss of or damage to property by theft or otherwise, or (v) any injury or damage to persons or property resulting from any casualty,
explosion, falling plaster or other masonry or glass, steam, gas, electricity, water or rain which may leak from any part of the Building or any other portion of the Project or from the pipes,
appliances or plumbing works therein or from the roof, street or subsurface or from any other place, or resulting from dampness. Notwithstanding anything to the contrary contained in this Lease,
neither Landlord nor any Landlord Indemnified Parties will be liable for consequential damages arising out of any loss of the use of the Premises or any equipment or facilities therein by Tenant or
any Tenant Parties or for interference with light or other incorporeal hereditaments. Tenant agrees to give prompt notice to Landlord in case of fire or accidents in the Premises or the Building, or
of defects therein or in the fixtures or equipment. 

        (b)  Indemnification.    Tenant will be liable for, and agrees, to the maximum extent permissible under applicable
law, to promptly indemnify, protect, defend and hold harmless Landlord and all Landlord Indemnified Parties, from and against, any and all claims, damages, judgments, suits, causes of action, losses,
liabilities, penalties, fines, expenses and costs, including attorneys' fees and court costs 

16

 

(collectively, "Indemnified Claims"), arising or resulting from (i) any act or omission of Tenant or any Tenant Parties (as defined in Subparagraph 8(c) above); (ii) the use of the
Premises and Common Areas and conduct of Tenant's business by Tenant or any Tenant Parties, or any other activity, work or thing done, permitted or suffered by Tenant or any Tenant Parties, in or
about the Premises, the Building or
elsewhere within the Project; and/or (iii) any default by Tenant of any obligations on Tenant's part to be performed under the terms of this Lease. In case any action or proceeding is brought
against Landlord or any Landlord Indemnified Parties by reason of any such Indemnified Claims, Tenant, upon notice from Landlord, agrees to promptly defend the same at Tenant's sole cost and expense
by counsel approved in writing by Landlord, which approval Landlord will not unreasonably withhold. 

        (c)  Survival; No Release of Insurers.    Tenant's indemnification obligations under Subparagraph 18(b) will survive
the expiration or earlier termination of this Lease. Tenant's covenants, agreements and indemnification obligation in Subparagraphs 18(a) and 18(b) above, are not intended to and will not relieve any
insurance carrier of its obligations under policies required to be carried by Tenant pursuant to the provisions of this Lease. 

        19.    INSURANCE.    

        (a)  Tenant's Insurance.    On or before the earlier to occur of (i) the Commencement Date, or
(ii) the date Tenant commences work of any type in the Premises pursuant to this Lease (which may be prior to the Commencement Date), and continuing throughout the entire Term hereof and any
other period of occupancy, Tenant agrees to keep in full force and effect, at its sole cost and expense, the following insurance: 

        (i)    "Special
Form" property insurance including at least the following perils: fire and extended coverage, smoke damage, vandalism, malicious mischief, sprinkler leakage
(including earthquake sprinkler leakage). This insurance policy must be upon all property owned by Tenant, for which Tenant is legally liable, or which is installed at Tenant's expense, and which is
located in the Building including, without limitation, any Tenant Improvements which satisfy the foregoing qualification and any Alterations, and all furniture, fittings, installations, fixtures and
any other personal property of Tenant, in an amount not less than the full replacement cost thereof. If there is a dispute as to full replacement cost, the decision of Landlord or any mortgagee of
Landlord will be presumptive. 

        (ii)  Commercial
General Liability Insurance or Comprehensive General Liability Insurance (on an occurrence form) insuring bodily injury, personal injury and property damage
including the following divisions and extensions of coverage: Premises and Operations; Owners and Contractors protective; blanket contractual liability (including coverage for Tenant's indemnity
obligations under this Lease); products and completed operations; and liquor liability (if Tenant serves alcohol on the Premises). Such insurance must have the following minimum limits of liability:
bodily injury, personal injury and property damage—$2,000,000 each occurrence, $5,000,000 in the aggregate, provided that if liability coverage is provided by a Commercial General
Liability policy the general aggregate limit shall apply separately and in total to this location only (per location general aggregate), and provided further, such minimum limits of liability may be
adjusted from year to year to reflect increases in coverages as recommended by Landlord's insurance carrier as being prudent and commercially reasonable for tenants of first class office buildings
comparable to the Building, rounded to the nearest five hundred thousand dollars. 

        (iii)  Comprehensive
Automobile Liability insuring bodily injury and property damage arising from all owned, non-owned and hired vehicles, if any, with minimum limits of
liability of $1,000,000 per accident. 

        (iv)  Worker's
Compensation as required by the laws of the State. 

17

 

        (v)  Any
other form or forms of insurance as Tenant or Landlord or any mortgagees of Landlord may reasonably require from time to time in form, in amounts, and for insurance
risks against which, a prudent tenant would protect itself, but only to the extent coverage for such risks and amounts are available in the insurance market at commercially acceptable rates. Landlord
makes no representation that the limits of liability required to be carried by Tenant under the terms of this Lease are adequate to protect Tenant's interests and Tenant should obtain such additional
insurance or increased liability limits as Tenant deems appropriate. 

        (b)  Supplemental Tenant Insurance Requirements.

        (i)    All
policies must be in a form reasonably satisfactory to Landlord and issued by an insurer admitted to do business in the State. 

        (ii)  All
policies must be issued by insurers with a policyholder rating of "A" or "A-" and a financial rating of "X" in the most recent version of Best's Key Rating Guide. 

        (iii)  All
policies must contain a requirement to notify Landlord (and Landlord's partners, members and property manager and any mortgagees or ground lessors of Landlord who
are named as additional insureds, if any) in writing not less than thirty (30) days prior to any material change, reduction in coverage, cancellation or other termination thereof. Tenant agrees to
deliver to Landlord, as soon as practicable after placing the required insurance, but in any event within the time frame specified in Subparagraph 19(a) above, certificate(s) of insurance and/or if
required by Landlord, certified copies of each policy evidencing the existence of such insurance and Tenant's compliance with the provisions of this Paragraph 19. Tenant agrees to cause replacement
policies or certificates to be delivered to Landlord not less than thirty (30) days prior to the expiration of any such policy or policies. If any such initial or replacement policies or certificates
are not furnished within the time(s) specified herein, Tenant will be deemed to be in material default under this Lease without the benefit of any additional notice or cure period provided in
Subparagraph 22(a)(iii) below, and Landlord will have the right, but not the obligation, to procure such insurance as Landlord deems necessary to protect Landlord's interests at Tenant's expense. If
Landlord obtains any insurance that is the responsibility of Tenant under this Paragraph 19, Landlord agrees to deliver to Tenant a written statement setting forth the cost of any such insurance and
showing in reasonable detail the manner in which it has been computed and Tenant agrees to promptly reimburse Landlord for such costs as additional rent. 

        (iv)  General
Liability and Automobile Liability policies under Subparagraphs 19(a)(iii) and (iv) must name Landlord and Landlord's partners, members and property manager
(and at Landlord's request, Landlord's mortgagees and ground lessors of which Tenant has been informed in writing) as additional insureds and must also contain a provision that the insurance afforded
by such policy is primary 

18

  

insurance
and any insurance carried by Landlord and Landlord's property manager or Landlord's mortgagees or ground lessors, if any, will be excess over and non-contributing with Tenant's insurance. 

        (c)    Tenant's Use.    Tenant will not keep, use, sell or offer for sale in or upon the Premises any article which
may be prohibited by any insurance policy periodically in force covering the Building or the Project Common Areas. If Tenant's use of the Premises in a manner other than as expressly permitted in
Subparagraph 1(r) (a "Special Use"), whether or not Landlord has consented to the same, results in any increase in premiums for the insurance periodically carried by Landlord with respect to the
Building or the Project Common Areas or results in the need for Landlord to maintain special or additional insurance, Tenant agrees to pay Landlord the cost of any such increase in premiums or special
or additional coverage as additional rent within ten (10) days after being billed therefor by Landlord. In determining whether increased premiums are a result of Tenant's Special Use of the Premises,
a schedule issued by the organization computing the insurance rate on the Building, the Project Common Areas or the Tenant improvements showing the various components of such rate, will be conclusive
evidence of the several items and charges which make up such rate. Tenant agrees to promptly comply with all reasonable requirements of the insurance authority or any present or future insurer
relating to the Premises. 

        (d)    Landlord's Insurance.    Landlord shall, at all times during the Term, procure, maintain and keep in effect the
following policies of insurance and minimum coverages: 

          (i)  "Special
Form" property casualty coverage (formerly known as "all risk") in an amount of not less than ninety percent (90%) of the insurable replacement cost covering
the Building in which the Premises are located and any parking structures or facilities serving the Premises. 

        (ii)  Commercial
General Liability Insurance insuring against injury to persons and property with a minimum combined single limit of liability of at least Five Million
Dollars ($5,000,000). 

        (e)    Cancellation of Landlord's Policies.    If any of Landlord's insurance policies are cancelled or cancellation
is threatened or the coverage reduced or threatened to be reduced in any way because of the Special Use of the Premises or any part thereof by Tenant or any assignee or subtenant of Tenant or by
anyone Tenant permits on the Premises and, if Tenant fails to remedy the condition giving rise to such cancellation, threatened cancellation, reduction of coverage, threatened reduction of coverage,
increase in premiums, or threatened increase in premiums, within forty-eight (48) hours after notice
thereof, Tenant will be deemed to be in material default of this Lease and Landlord may, at its option, either terminate this Lease or enter upon the Premises and attempt to remedy such condition, and
Tenant shall promptly pay Landlord the reasonable costs of such remedy as additional rent. If Landlord is unable, or elects not to remedy such condition, then Landlord will have all of the remedies
provided for in this Lease in the event of a default by Tenant. 

        (f)    Waiver of Subrogation.    Each of Tenant's and Landlord's property insurance shall contain a clause whereby the
procuring party and its insurer waives all rights of recovery by way of subrogation against the other party. Tenant shall also obtain and furnish evidence to Landlord of the waiver by Tenant's
worker's compensation insurance carrier of all rights of recovery by way of subrogation against Landlord. 

        20.    DAMAGE OR DESTRUCTION.    

        (a)    Partial Destruction.    If the Premises or the Building are damaged by fire or other casualty to an extent not
exceeding twenty-five percent (25%) of the full replacement cost thereof, and Landlord's contractor reasonably estimates in a writing delivered to Landlord and Tenant that the damage thereto may be
repaired, reconstructed or restored to substantially its condition immediately prior to such damage within one hundred twenty (120) days from the date of such casualty, and Landlord will receive
insurance proceeds sufficient to cover the costs of such repairs, reconstruction and restoration 

19

 

(including proceeds from Tenant and/or Tenant's insurance which Tenant is required to deliver to Landlord pursuant to Subparagraph 20(e) below to cover Tenant's obligation for the costs of repair,
reconstruction and restoration of any portion of the Tenant Improvements and any Alterations for which Tenant is responsible under this Lease), then Landlord agrees to commence and proceed diligently
with the work of repair, reconstruction and restoration and this Lease will continue in full force and effect. 

        (b)    Substantial Destruction.    Any damage or destruction to the Premises or the Building which Landlord is not
obligated to repair pursuant to Subparagraph 20(a) above will be deemed a substantial destruction. In the event of a substantial destruction, Landlord may elect to either (i) repair, reconstruct and
restore the portion of the Building or the Premises damaged by such casualty, in which case this Lease will continue in full force and effect, subject to Tenant's termination right contained in
Subparagraph 20(d) below; or (ii) terminate this Lease effective as of the date which is thirty (30) days after Tenant's receipt of Landlord's election to so terminate. 

        (c)    Notice.    Under any of the conditions of Subparagraph 20(a) or (b) above, Landlord agrees to give written
notice to Tenant of its intention to repair or terminate, as permitted in such paragraphs, within the earlier of sixty (60) days after the occurrence of such casualty, or fifteen (15) days after
Landlord's receipt of the estimate from Landlord's contractor (the applicable time period to be referred to herein as the "Notice Period"). 

        (d)    Tenant's Termination Rights.    If Landlord elects to repair, reconstruct and restore pursuant to Subparagraph
20(b)(i) hereinabove, and if Landlord's contractor reasonable estimates that as a result of such damage, Tenant cannot be given reasonable use of and access to the Premises within one hundred twenty
(120) days after the date of such damage, then Tenant may terminate this Lease effective upon delivery of written notice to Landlord within ten (10) days after Landlord delivers notice to Tenant of
its election to so repair, reconstruct or restore. 

        (e)    Tenant's Costs and Insurance Proceeds.    In the event of any damage or destruction of all or any part of the
Premises, Tenant agrees to immediately (i) notify Landlord thereof, and (ii) deliver to Landlord all property insurance proceeds received by Tenant with respect to any Tenant Improvements installed by
or at the cost of Tenant and any Alterations, but excluding proceeds for Tenant's furniture, fixtures, equipment and other personal property, whether or not this Lease is terminated as permitted in
this Paragraph 20, and Tenant hereby assigns to Landlord all rights to receive such insurance proceeds. If, for any reason (including Tenant's failure to obtain insurance for the full replacement cost
of any Tenant Improvements installed by or at the cost of Tenant and any Alterations from any and all casualties), Tenant fails to receive insurance proceeds covering the full replacement cost of any
Tenant Improvements installed by or at the cost of Tenant and any Alterations which are damaged, Tenant will be deemed to have self-insured the replacement cost of such items, and upon any damage or
destruction thereto, Tenant agrees to immediately pay to Landlord the full replacement cost of such items, less any insurance proceeds actually received by Landlord from Landlord's or Tenant's
insurance with respect to such items. 

        (f)    Abatement of Rent.    In the event of any damage, repair, reconstruction and/or restoration described in this
Paragraph 20, rent will be abated or reduced, as the case may be, from the date of such casualty, in proportion to the degree to which Tenant's use of the Premises is impaired during such period of
repair until such use is restored. Except for abatement of rent as provided hereinabove, Tenant will not be entitled to any compensation or damages for loss of, or interference with, Tenant's business
or use or access of all or any part of the Premises or for lost profits or any other consequential damages of any kind or nature, which result from any such damage, repair, reconstruction or
restoration. 

        (g)    Inability to Complete.    Notwithstanding anything to the contrary contained in this Paragraph 20, if Landlord
is obligated or elects to repair, reconstruct and/or restore the damaged portion of the 

20

 

Building or the Premises pursuant to Subparagraph 20(a) or 20(b)(i) above, but is delayed from completing such repair, reconstruction and/or restoration beyond the date which is thirty (30) days
after the date estimated by Landlord's contractor for completion thereof by reason of any causes (other than delays caused by Tenant, its subtenants, employees, agents or contractors or delays which
are beyond the reasonable control of Landlord as described in Paragraph 33), then either Landlord or Tenant may elect to terminate this Lease upon ten (10) days prior written notice given to the other
after the expiration of such thirty (30) day period. 

        (h)    Damage Near End of Term.    Landlord and Tenant shall each have the right to terminate this Lease if any damage
to the Premises occurs during the last twelve (12) months of the Term of this Lease where Landlord's contractor estimates in a writing delivered to Landlord and Tenant that the repair, reconstruction
or restoration of such damage cannot be completed within sixty (60) days after the date of such casualty. If either party desires to terminate this Lease under this Subparagraph (h), it shall provide
written notice to the other party of such election within ten (10) days after receipt of Landlord's contractor's repair estimates. 

        (i)    Waiver of Termination Right.    Landlord and Tenant agree that the foregoing provisions of this Paragraph 20
are to govern their respective rights and obligations in the event of any damage or destruction and supersede and are in lieu of the provisions of any applicable law, statute, ordinance, rule,
regulation, order or ruling now or hereafter in force which provide remedies for damage or destruction of leased premises (including, without limitation, to the extent the Premises are located in
California, the provisions of California Civil Code Section 1932, Subsection 2, and Section 1933, Subsection 4 and any successor statute or laws of a similar nature). 

        (j)    Termination.    Upon any termination of this Lease under any of the provisions of this Paragraph 20, the
parties will be released without further obligation to the other from the date possession of the Premises is surrendered to Landlord except for items which have accrued and are unpaid as of the date
of termination and matters which are to survive any termination of this Lease as provided in this Lease. 

        21.    EMINENT DOMAIN.    

        (a)    Substantial Taking.    If the whole of the Premises, or such part thereof as shall substantially interfere with
Tenant's use and occupancy of the Premises, as contemplated by this Lease, is taken for any public or quasi-public purpose by any lawful power or authority by exercise of the right of appropriation,
condemnation or eminent domain, or sold to prevent such taking, either party will have the right to terminate this Lease effective as of the date possession is required to be surrendered to such
authority. 

        (b)    Partial Taking; Abatement of Rent.    In the event of a taking of a portion of the Premises which does not
substantially interfere with Tenant's use and occupancy of the Premises, then, neither party will have the right to terminate this Lease and Landlord will thereafter proceed to make a functional unit
of the remaining portion of the Premises (but only to the extent Landlord receives proceeds therefor from the condemning authority), and rent will be abated with respect to the part of the Premises
which Tenant is deprived of on account of such taking. Notwithstanding the immediately preceding sentence to the contrary, if any part of the Building or the Project is taken (whether or not such
taking substantially interferes with Tenant's use of the Premises), Landlord may terminate this Lease upon thirty (30) days prior written notice to Tenant if Landlord also terminates the leases of the
other tenants of the Building which are leasing comparably sized space for comparable lease terms. 

        (c)    Condemnation Award.    In connection with any taking of the Premises or the Building, Landlord will be entitled
to receive the entire amount of any award which may be made or given in such taking or condemnation, without deduction or apportionment for any estate or interest of Tenant, it being expressly
understood and agreed by Tenant that no portion of any such award will be allowed 

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or paid to Tenant for any so-called bonus or excess value of this Lease, and such bonus or excess value will be the sole property of Landlord. Tenant agrees not to assert any claim against Landlord
or the taking authority for any compensation because of such taking (including any claim for bonus or excess value of this Lease); provided, however, if any portion of the Premises is taken, Tenant
will have the right to recover from the condemning authority (but not from Landlord) any compensation as may be separately awarded or recoverable by Tenant for the taking of Tenant's furniture,
fixtures, equipment and other personal property within the Premises, for Tenant's relocation expenses, and for any loss of goodwill or other damage to Tenant's business by reason of such taking. 

        (d)    Temporary Taking.    In the event of taking of the Premises or any part thereof for temporary use, (i) this
Lease will remain unaffected thereby and rent will abate for the duration of the taking in proportion to the extent Tenant's use of the Premises is interfered with, and (ii) Landlord will be entitled
to receive such portion or portions of any award made for such use provided that if such taking remains in force at the expiration or earlier termination of this Lease, Tenant will then pay to
Landlord a sum equal to the reasonable cost of performing Tenant's obligations under Paragraph 11 with respect to surrender of the Premises and upon such payment Tenant will be excused from such
obligations. For purpose of this Subparagraph 21(d), a temporary taking shall be defined as a taking for a period of ninety (90) days or less. 

        22.    DEFAULTS AND REMEDIES.    

        (a)    Defaults.    The occurrence of any one or more of the following events will be deemed a default by Tenant if
not cured by Tenant within the cure period, if any, therefor ( "Default"): 

          (i)  The
abandonment of the Premises by Tenant, which for purposes of this Lease means any absence by Tenant from the Premises for fifteen (15) business days or longer while
in default of any other provision of this Lease and, with respect to ground floor space only, any vacation of the Premises, which for purposes of this Lease means any absence by Tenant from the
Premises for ninety (90) days or longer whether or not Tenant is in default under any provision of this Lease. 

        (ii)  The
failure by Tenant to make any payment of rent or additional rent or any other payment required to be made by Tenant hereunder, as and when due, where such failure
continues for a period of three (3) days after written notice thereof from Landlord to Tenant; provided, however, that any such notice will be in lieu of, and not in addition to, any notice required
under applicable law (including, without limitation, to the extent the Premises are located in California, the provisions of California Code of Civil Procedure Section 1161 regarding unlawful detainer
actions or any successor statute or law of a similar nature). 

        (iii)  The
failure by Tenant to observe or perform any of the express or implied covenants or provisions of this Lease to be observed or performed by Tenant, other than as
specified in Subparagraph 22(a)(i) or (ii) above, where such failure continues (where no other period of time is expressly provided) for a period of thirty (30) days after written notice thereof from
Landlord to Tenant. The provisions of any such notice will be in lieu of, and not in addition to, any notice required under applicable law (including, without limitation, to the extent the Premises
are located in California, California Code of Civil Procedure Section 1161 regarding unlawful detainer actions and any successor statute or similar law). If the nature of Tenant's default is such that
more than thirty (30) days are reasonably required for its cure, then Tenant will not be deemed to be in Default if Tenant, with Landlord's concurrence, commences such cure within such period and
thereafter diligently prosecutes such cure to completion. 

        (iv)  (a)
The making by Tenant of any general assignment for the benefit of creditors; (b) the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt or
a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days); (c) the
appointment of a 

22

 

trustee or receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's Interest in this Lease, where possession is not restored to Tenant within thirty
(30) days; or (d) the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease where such seizure is not
discharged within thirty (30) days. 

        (b)    Landlord's Remedies; Termination.    In the event of any Default by Tenant, in addition to any other remedies
available to Landlord at law or in equity under applicable law (including, without limitation, to the extent the Premises are located in California, the remedies of Civil Code Section 1951.4 and any
successor statute or similar law, which provides that Landlord may continue this Lease in effect following Tenant's breach and abandonment and collect rent as it falls due, if Tenant has the right to
sublet or assign, subject to reasonable limitations), Landlord will have the immediate right and option to terminate this Lease and all rights of Tenant hereunder. If Landlord elects to terminate this
Lease then, to the extent permitted under applicable law, Landlord may recover from Tenant (i) The worth at the time of award of any unpaid rent which had been earned at the time of such termination;
plus (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rent loss that Tenant
proves could have been reasonably avoided; plus (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the Term after the time of award exceeds the amount of
such rent loss that Tenant proves could be reasonably avoided; plus (iv) any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its
obligations under this Lease or which, in the ordinary course of things, results therefrom including, but not limited to: attorneys' fees and costs; brokers' commissions; the costs of refurbishment,
alterations, renovation and repair of the Premises, and removal (including the repair of any damage caused by such removal) and storage (or disposal) of Tenant's personal property, equipment,
fixtures, Alterations, the Tenant Improvements and any other items which Tenant is required under this Lease to remove but does not remove, as well as the unamortized value of any free rent, reduced
rent, free parking, reduced rate parking and any Tenant Improvement Allowance or other costs or economic concessions provided, paid, granted or incurred by Landlord pursuant to this Lease. The
unamortized value of such concessions shall be determined by taking the total value of such concessions and multiplying such value by a
fraction, the numerator of which is the number of months of the Lease Term not yet elapsed as of the date on which the Lease is terminated, and the denominator of which is the total number of months
of the Lease Term. As used in Subparagraphs 22(b)(i) and (ii) above, the "worth at the time of award" is computed by allowing interest at the Interest Rate. As used in Subparagraph 22(b)(iii)
above, the "worth at the time of award" is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). 

        (c)    Landlord's Remedies; Re-Entry Rights.    In the event of any Default by Tenant, in addition to any other
remedies available to Landlord under this Lease, at law or in equity, Landlord will also have the right, with or without terminating this Lease, to re-enter the Premises and remove all persons and
property from the Premises; such property may be removed and stored in a public warehouse or elsewhere and/or disposed of at the sole cost and expense of and for the account of Tenant in accordance
with the provisions of Subparagraph 13(h) of this Lease or any other procedures permitted by applicable law. No re-entry or taking possession of the Premises by Landlord pursuant to this Subparagraph
22(c) will be construed as an election to terminate this Lease unless a written notice of such intention is given to Tenant or unless the termination thereof is decreed by a court of competent
jurisdiction. 

        (d)    Landlord's Remedies; Re-Letting.    In the event of the vacation or abandonment of the Premises by Tenant or in
the event that Landlord elects to re-enter the Premises or takes possession of the Premises pursuant to legal proceeding or pursuant to any notice provided by law, if Landlord does not elect to
terminate this Lease, then Landlord may from time to time, without terminating this 

23

 

Lease, either recover all rent as it becomes due or relet the Premises or any part thereof on terms and conditions as Landlord in its sole and absolute discretion may deem advisable with the right to
make alterations and repairs to the Premises in connection with such reletting. If Landlord elects to relet the Premises, the rents received by Landlord from such reletting will be applied: first, to
the payment of any indebtedness other than rent due hereunder from Tenant to Landlord; second, to the payment of any cost of such reletting; third, to the payment of the cost of any alterations and
repairs to the Premises incurred in connection with such reletting; fourth, to the payment of rent due and unpaid hereunder and the residue, if any, will be held by Landlord and applied to payment of
future rent as the same may become due and payable hereunder. Should that portion of such rents received from such reletting during any month, which is applied to the payment of rent hereunder, be
less than the rent payable during that month by Tenant hereunder, then Tenant agrees to pay such deficiency to Landlord immediately upon demand therefor by Landlord. Such deficiency will be calculated
and paid monthly. 

        (e)    Landlord's Remedies; Performance for Tenant.    All covenants and agreements to be performed by Tenant under
any of the terms of this Lease are to be performed by Tenant at Tenant's sole cost and expense and without any abatement of rent. If Tenant fails to pay any sum of money owed to any party other than
Landlord, for which it is liable under this Lease, or if Tenant fails to perform any other act on its part to be performed hereunder, and such failure continues for ten (10) days after notice thereof
by Landlord, Landlord may, without waiving or releasing Tenant from its obligations, but shall not be obligated to, make any such payment or perform any such other act to be made or performed by
Tenant. Tenant agrees to reimburse Landlord upon demand for all sums so paid by Landlord and all necessary incidental costs, together with interest thereon at the Interest Rate, from the date of such
payment by Landlord until reimbursed by Tenant. This remedy shall be in addition to any other right or remedy of Landlord set forth in this Paragraph 22. 

        (f)    Late Payment.    If Tenant fails to pay any installment of rent within five (5) days of when due or if Tenant
fails to make any other payment for which Tenant is obligated under this Lease within five (5) days of when due, such late amount will accrue interest at the Interest Rate and Tenant agrees to pay
Landlord as additional rent such interest on such amount from the date such amount becomes due until such amount is paid. In addition, Tenant agrees to pay to Landlord concurrently with such late
payment amount, as additional rent, a late charge equal to five percent (5%) of the amount due to compensate Landlord for the extra costs Landlord will incur as a result of such late payment. The
parties agree that (i) it would be impractical and extremely difficult to fix the actual damage Landlord will suffer in the event 

24

   
of Tenant's late payment, (ii) such interest and late charge represents a fair and reasonable estimate of the detriment that Landlord will suffer by reason of late payment by Tenant, and (iii) the
payment of interest and late charges are distinct and separate in that the payment of interest is to compensate Landlord for the use of Landlord's money by Tenant, while the payment of late charges is
to compensate Landlord for Landlord's processing, administrative and other costs incurred by Landlord as a result of Tenant's delinquent payments. Acceptance of any such interest and late charge will
not constitute a waiver of the Tenant's default with respect to the overdue amount, or prevent Landlord from exercising any of the other rights and remedies available to Landlord. If Tenant incurs a
late charge more than three (3) times in any period of twelve (12) months during the Lease Term, then, notwithstanding that Tenant cures the late payments for which such late charges are imposed,
Landlord will have the right to require Tenant thereafter to pay all installments of Monthly Base Rent quarterly in advance throughout the remainder of the Lease Term. 

        (g)    Rights and Remedies Cumulative.    All rights, options and remedies of Landlord contained in this Lease will be
construed and held to be cumulative, and no one of them will be exclusive of the other, and Landlord shall have the right to pursue any one or all of such remedies or any other remedy or relief which
may be provided by law or in equity, whether or not stated in this Lease. Nothing in this Paragraph 22 will be deemed to limit or otherwise affect Tenant's indemnification of Landlord pursuant to any
provision of this Lease. 

        23.    LANDLORD'S DEFAULT.    Landlord will not be in default in the performance of any obligation required to be
performed by Landlord under this Lease unless Landlord fails to perform such obligation within a reasonable time, which shall not exceed thirty (30) days after the receipt of written notice from
Tenant specifying in detail Landlord's failure to perform; provided however, that if the nature of Landlord's obligation is such that more than thirty (30) days are required for performance, then
Landlord will not be deemed in default if it commences such performance within such thirty (30) day period and thereafter diligently pursues the same to completion. Upon any defaults by Landlord,
Tenant may exercise any of its rights provided at law or in equity, subject to the limitations on liability set forth in Paragraph 35 of this Lease. 

        24.    ASSIGNMENT AND SUBLETTING.    

        (a)    Restriction on Transfer.    Except as expressly provided in this Paragraph 24, Tenant will not, either
voluntarily or by operation of law, assign or encumber this Lease or any interest herein or sublet the Premises or any part thereof, or permit the use or occupancy of the Premises by any party other
than Tenant (any such assignment, encumbrance, sublease or the like will sometimes be referred to as a
"Transfer"), without the prior written consent of Landlord, which consent Landlord will not unreasonably withhold. 

        (b)    Corporate and Partnership Transfers.    For purposes of this Paragraph 24, if Tenant is a corporation,
partnership or other entity, any transfer, assignment, encumbrance or hypothecation of fifty percent (50%) or more (individually or in the aggregate) of any stock or other ownership interest in such
entity, will be deemed a Transfer and will be subject to all of the restrictions and provisions contained in this Paragraph 24. Notwithstanding the foregoing, the immediately preceding sentence will
not apply to any transfers of stock of Tenant if Tenant is a publicly-held corporation and such stock is transferred publicly over a recognized security exchange or over-the-counter market. 

        (c)    Permitted Controlled Transfers.    Notwithstanding the provisions of this Paragraph 24 to the contrary, Tenant
may assign this Lease or sublet the Premises or any portion thereof ("Permitted Transfer"), without Landlord's consent and without extending any sublease termination option to Landlord, to any parent,
subsidiary or affiliate corporation which controls, is controlled by or is under common control with Tenant, or to any corporation resulting from a merger or consolidation with Tenant, or to any
person or entity which acquires all the assets of Tenant's business as a going concern, provided that: (i) at least twenty (20) days prior to such assignment or sublease, Tenant delivers to 

25

 

Landlord the financial statements and other financial and background information of the assignee or sublessee described in Subparagraph 24(d) below; (ii) if an assignment, the assignee assumes, in
full, the obligations of Tenant under this Lease (or if a sublease, the sublessee of a portion of the Premises or Term assumes, in full, the obligations of Tenant with respect to such portion); (iii)
the financial net worth of the assignee or sublessee as of the time of the proposed assignment or sublease equals or exceeds that of Tenant as of the date of execution of this Lease; (iv) Tenant, if
in existence following such merger or consolidation, remains fully liable under this Lease; and (v) the use of the Premises under Paragraph 8 remains unchanged. 

        (d)    Transfer Notice.    If Tenant desires to effect a Transfer, then at least thirty (30) days prior to the date
when Tenant desires the Transfer to be effective (the "Transfer Date"), Tenant agrees to give Landlord a notice (the "Transfer Notice"), stating the name, address and business of the proposed
assignee, sublessee or other transferee (sometimes referred to hereinafter as "Transferee"), reasonable information (including references) concerning the character, ownership, and financial condition
of the proposed Transferee, the Transfer Date, any ownership or commercial relationship between Tenant and the proposed Transferee, and the consideration and all other material terms and conditions of
the proposed Transfer, all in such detail as Landlord may reasonably require. If Landlord reasonably requests additional detail, the Transfer Notice will not be deemed to have been received until
Landlord receives such additional detail, and Landlord may withhold consent to any Transfer until such information is provided to it. 

        (e)    Landlord's Options.    Within fifteen (15) days of Landlord's receipt of any Transfer Notice, and any
additional information requested by Landlord concerning the proposed Transferee's financial responsibility, Landlord will elect to do one of the following (i) consent to the proposed Transfer; or
(ii) refuse such consent, which refusal shall be on reasonable grounds including, without limitation, those set forth in Subparagraph 24(f) below. 

        (f)    Reasonable Disapproval.    Landlord and Tenant hereby acknowledge that Landlord's disapproval of any proposed
Transfer pursuant to Subparagraph 24(e) will be deemed reasonably withheld if based upon any reasonable factor, including, without limitation, any or all of the following factors: (i) the proposed
Transferee is a governmental entity; (ii) the portion of the Premises to be sublet or assigned is irregular in shape with inadequate means of ingress and egress; (iii) the use of the Premises by the
Transferee (a) is not permitted by the use provisions in Paragraph 8 hereof, (b) violates any exclusive use granted by Landlord to another tenant in the Building, or (c) otherwise poses a risk of
increased liability to Landlord; (iv) the Transfer would likely result in a significant and inappropriate increase in the use of the parking areas or Project Common Areas by the Transferee's employees
or visitors, and/or significantly increase the demand upon utilities and services to be provided by Landlord to the Premises; (v) the Transferee does not have the financial capability to fulfill the
obligations imposed by the Transfer and this Lease; (vi) the Transferee is not in Landlord's reasonable opinion consistent with Landlord's desired tenant mix; or (vii) the Transferee poses a business
or other economic risk which Landlord deems unacceptable. 

        (g)    Additional Conditions.    A condition to Landlord's consent to any Transfer of this Lease will be the delivery
to Landlord of a true copy of the fully executed instrument of assignment, sublease, transfer or hypothecation, and, in the case of an assignment, the delivery to Landlord of an agreement executed by
the Transferee in form and substance reasonably satisfactory to Landlord, whereby the Transferee assumes and agrees to be bound by all of the terms and provisions of this Lease and to perform all of
the obligations of Tenant hereunder. As a condition for granting its consent to any assignment or sublease, Landlord may require that the assignee or sublessee remit directly to Landlord on a monthly
basis, all monies due to Tenant by said assignee or sublessee. As a condition to Landlord's consent to any sublease, such sublease must provide that it is subject and subordinate to this Lease and to
all mortgages; that Landlord may enforce the provisions of the sublease, including collection of rent; that in the event of termination of this Lease for any reason, including without 

26

 

limitation a voluntary surrender by Tenant, or in the event of any reentry or repossession of the Premises by Landlord, Landlord may, at its option, either (i) terminate the sublease, or (ii) take
over all of the right, title and interest of Tenant, as sublessor, under such sublease, in which case such sublessee will attorn to Landlord, but that nevertheless Landlord will not (1) be liable for
any previous act or omission of Tenant under such sublease, (2) be subject to any defense or offset previously accrued in favor of the sublessee against Tenant, or (3) be bound by any previous
modification of any sublease made without Landlord's written consent, or by any previous prepayment by sublessee of more than one month's rent. 

        (h)    Excess Rent.    If Landlord consents to any assignment of this Lease, Tenant agrees to pay to Landlord, as
additional rent, fifty percent (50%) of all sums and other consideration payable to end for the benefit of Tenant by the assignee on account of the assignment, as and when such sums and other
consideration are due and payable by the assignee to or for the benefit of Tenant (or, if Landlord so requires, and without any release of Tenant's liability for the same, Tenant agrees to instruct
the assignee to pay such sums and other consideration directly to Landlord); provided, however, Tenant shall have no obligation to pay to Landlord any portion of such excess where the assignment of
the
Lease is made to an affiliated entity so as to constitute a Permitted Transfer in accordance with Subparagraph (c) hereof. If for any sublease, Tenant receives rent or other consideration, either
initially or over the term of the sublease, in excess of the rent fairly allocable to the portion of the Premises which is subleased based on square footage, Tenant agrees to pay to Landlord as
additional rent fifty percent (50%) of the excess of each such payment of rent or other consideration received by Tenant promptly after its receipt. In calculating excess rent or other consideration
which may be payable to Landlord under this paragraph, Tenant will be entitled to deduct commercially reasonable third party brokerage commissions and attorneys' fees, the reasonable cost of any
furniture and/or services provided to the assignee or subtenant, all actual out-of-pocket tenant improvement costs and/or allowances paid by Tenant, any rent or other concessions, and other amounts
reasonably and actually expended by Tenant in connection with such assignment or subletting if acceptable written evidence of such expenditure is provided to Landlord. 

        (i)    No Release.    No Transfer will release Tenant of Tenant's obligations under this Lease or alter the primary
liability of Tenant to pay the rent and to perform all other obligations to be performed by Tenant hereunder. Landlord may require that any Transferee remit directly to Landlord on a monthly basis,
all monies due Tenant by said Transferee. However, the acceptance of rent by Landlord from any other person will not be deemed to be a waiver by Landlord of any provision hereof. Consent by Landlord
to one Transfer will not be deemed consent to any subsequent Transfer. In the event of default by any Transferee of Tenant or any successor of Tenant in the performance of any of the terms hereof,
Landlord may proceed directly against Tenant without the necessity of exhausting remedies against such Transferee or successor. Landlord may consent to subsequent assignments of this Lease or
sublettings or amendments or modifications to this Lease with assignees of Tenant, without notifying Tenant, or any successor of Tenant, and without obtaining its or their consent thereto and any such
actions will not relieve Tenant of liability under this Lease. 

        (j)    Administrative and Attorney's Fees.    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 One Hundred Dollars ($100.00) for each one thousand (1,000) rentable square feet of area contained within the Premises or portion thereof to be assigned or sublet. Acceptance of the Two
Hundred Fifty Dollar ($250.00) administrative fee and/or reimbursement of Landlord's attorneys' and paralegal fees will in no event obligate Landlord to consent to any proposed Transfer. 

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        25.    SUBORDINATION.    Without the necessity of any additional document being executed by Tenant for the purpose of
effecting a subordination, and at the election of Landlord or any mortgagee or beneficiary with a deed of trust encumbering the Building and/or the Project, or any lessor of a ground or underlying
lease with respect to the Building, this Lease will be subject and subordinate at all times to: (i) all ground leases or underlying leases which may now exist or hereafter be executed affecting the
Building; and (ii) the lien of any mortgage or deed of trust which may now exist or hereafter be executed for which the Building, the Project or any leases thereof, or Landlord's interest and estate
in any of said items, is specified as security. Notwithstanding the foregoing, Landlord reserves the right to
subordinate any such ground leases or underlying leases or any such liens to this Lease. If any such ground lease or underlying lease terminates for any reason or any such mortgage or deed of trust is
foreclosed or a conveyance in lieu of foreclosure is made for any reason, at the election of Landlord's successor in interest, Tenant agrees to attorn to and become the tenant of such successor in
which event Tenant's right to possession of the Premises will not be disturbed as long as Tenant in not in default under this Lease. Tenant hereby waives its rights under any law which gives or
purports to give Tenant any right to terminate or otherwise adversely affect this Lease and the obligations of Tenant hereunder in the event of such foreclosure proceeding or sale. Subject to Landlord
obtaining for Tenant from Landlord's tender, a commercially reasonable non-disturbance agreement, Tenant covenants and agrees to execute and deliver, upon demand by Landlord and in the form reasonably
required by Landlord, any additional documents evidencing the priority or subordination of this Lease and Tenant's attornment agreement with respect to any such ground lease or underlying leases or
the lien of any such mortgage or deed of trust. If Tenant fails to sign and return any such documents within ten (10) days of receipt, Tenant will be in default hereunder. 

        26.    ESTOPPEL CERTIFICATE.    

        (a)    Tenant's Obligations.    Within ten (10) days following any written request which Landlord my make from time to
time, Tenant agrees to execute and deliver to Landlord a statement, in a form substantially similar to the form of Exhibit "G" attached hereto or
as may reasonably be required by Landlord's lender, certifying: (i) the date of commencement of this Lease; (ii) the fact that this Lease is unmodified and in full force and effect, (or, if there have
been modifications, that this Lease is in full force and effect, and stating the date and nature of such modifications); (iii) the date to which the rent and other sums payable under this Lease have
been paid; (iv) that to Tenant's knowledge, there are no current defaults under this Lease by either Landlord or Tenant except as specified in Tenant's statement; and (v) such other matters reasonably
requested by Landlord. Landlord and Tenant intend that any statement delivered pursuant to this Paragraph 26 may be relied upon by any mortgagee, beneficiary, purchaser or prospective purchaser
of the Building or any interest therein. 

        (b)    Tenant's Failure to Deliver.    Tenant's failure to deliver such statement within such time will be conclusive
upon Tenant (i) that this Lease is in full force and effect, without modification except as may be represented by Landlord, (ii) that there are no uncured defaults in Landlord's performance, and (iii)
that not more than one (1) month's rent has been paid in advance. Without limiting the foregoing, if Tenant fails to deliver any such statement within such ten (10) day period, Landlord may deliver to
Tenant an additional request for such statement and Tenant's failure to deliver such a statement to Landlord within ten (10) days after delivery of such request will constitute a default under this
Lease. Tenant agrees to indemnify and protect Landlord from and against any and all claims, damages, losses, liabilities and expenses (including attorney's fees and costs) attributable to any failure
by Tenant to timely deliver any such estoppel certificate to Landlord as required by this Paragraph 26. 

        27.    BUILDING PLANNING.    Intentionally Omitted. 

        28.    RULES AND REGULATIONS.    Tenant agrees to faithfully observe and comply with the "Rules and Regulations," a
copy of which is attached hereto and incorporated by this reference as Exhibit "H",  and all reasonable and nondiscriminatory modifications
thereof and additions thereto 

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from time to time put into effect by Landlord. Landlord will not be responsible to Tenant for the violation or non-performance by any other tenant or occupant of the Building of any of the Rules and
Regulations. To the extent of any conflict between the Rules and Regulations and the express terms or manifest intent of any provision of this Lease (with the exclusion of  Exhibit "H"), the terms
of this Lease shall govern and control. 

        29.    MODIFICATION AND CURE RIGHTS OF LANDLORD'S MORTGAGEES AND LESSORS.    

        (a)    Modifications.    If, in connection with Landlord's obtaining or entering into any financing or ground lease
for any portion of the Building or the Development, the lender or ground lessor requests modifications to this Lease, Tenant, within ten (10) days after request therefor, agrees to execute an
amendment to this Lease incorporating such modifications, provided such modifications are reasonable and do not increase the obligations of Tenant under this Lease or adversely affect the leasehold
estate created by this Lease. 

        (b)    Cure Rights.    In the event of any default on the part of Landlord, Tenant will give notice by registered or
certified mail to any beneficiary of a deed of trust or mortgage covering the Premises or ground lessor of Landlord whose address has been furnished to Tenant, and Tenant agrees to offer such
beneficiary, mortgagee or ground lessor a reasonable opportunity to cure the default. 

        30.    DEFINITION OF LANDLORD.    The term "Landlord," as used in this Lease, so far as covenants or obligations on
the part of Landlord are concerned, means and includes only the owner or owners, at the time in question, of the fee title of the Premises or the lessees under any ground lease, if any. In the event
of any transfer, assignment or other conveyance or transfers of any such title (other than a transfer for security purposes only), Landlord herein named (and in case of any subsequent transfers or
conveyances, the then grantor) will be automatically relieved from and after the date of such transfer, assignment or conveyance of all liability as respects the performance of any covenants or
obligations on the part of Landlord contained in this Lease thereafter to be performed, so long as the transferee assumes in writing all such covenants and obligations of Landlord arising after the
date of such transfer. Landlord and Landlord's transferees and assignees have the absolute right to transfer all or any portion of their respective title and interest in the Development, the Building,
the Premises and/or this Lease without the consent of Tenant, and such transfer or subsequent transfer will not be deemed a violation on Landlord's part of any of the terms and conditions of this
Lease. 

        31.    WAIVER.    The waiver by either party of any breach of any term, covenant or condition herein contained will
not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition herein contained, nor will any custom or practice which may develop between
the parties in the administration of the terms hereof be deemed a waiver of or in any way affect the right of either party to insist upon performance in strict accordance with said terms. The
subsequent acceptance of rent or any other payment hereunder by Landlord will not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other
than the failure of Tenant to pay the particular rent so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such rent. No acceptance by Landlord of a
lesser sum than the basic rent and additional rent or other sum then due will be deemed to be other than on account of the earliest installment of such rent or other amount due, nor will any
endorsement or statement on any check or any letter accompanying any check be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to
recover the balance of such installment or other amount or pursue any other remedy provided in this Lease. The consent or approval of Landlord to or of any act by Tenant requiring Landlord's consent
or approval will not be deemed to waiver or render unnecessary Landlord's consent or approval to or of any subsequently similar acts by Tenant. 

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        32.    PARKING.    

        (a)    Grant of Parking Rights.    So long as this Lease is in effect and provided Tenant is not in Default hereunder.
Landlord grants to Tenant and Tenant's Authorized Users (as defined below) a license to use this number and type of parking spaces designated in Subparagraph 1(s) subject to the terms and
conditions of this Paragraph 32 and the Rules and Regulations regarding parking contained in Exhibit "H" attached hereto. Except as
otherwise expressly set forth in Subparagraph 1(s), as consideration for the use of such parking spaces, Tenant agrees to pay to Landlord or, at Landlord's election, directly to Landlord's
parking operator, as additional rent under this Lease, the parking rate set forth in Subparagraph 1(s) for each parking space used or required to be paid for by Tenant. Tenant agrees that all
parking charges will be payable on a monthly basis concurrently with each monthly payment of Monthly Base Rent. Tenant agrees to submit to Landlord or, at Landlord's election, directly to Landlord's
parking operator with a copy to Landlord, written notice in a form reasonably specified by Landlord containing the names, home and office addresses and telephone numbers of those persons who are
authorized by Tenant to use Tenant's parking spaces on a monthly basis ("Tenant's Authorized Users") and shall use its best efforts to identify each vehicle of Tenant's Authorized Users by make, model
and license number. Tenant agrees to deliver such notice prior to the beginning of the Term of this Lease and to periodically update such notice as well as upon specific request by Landlord or
Landlord's parking operator to reflect changes to Tenant's Authorized Users or their vehicles. 

        (b)    Visitor Parking.    So long as this Lease is in effect, Tenant's visitors and guests will be entitled to use
those specific parking areas which are designed for short term visitor parking and which are located within the surface parking area(s), if any, and/or within the parking structure(s) which serve the
Building. Visitor parking will be made available at a charge to Tenant's visitors and guests, with the rate being established by Landlord in its discretion from time to time. Tenant, at its sole cost
and expense, may elect to validate such parking for its visitors and guests. All such visitor parking will be on a non-exclusive, in common basis with all other visitors and guests of the Project. 

        (c)    Use of Parking Spaces.    Tenant will not use or allow any of Tenant's Authorized Users to use any parking
spaces which have been specifically assigned by Landlord to other tenants or occupants or for other uses such as visitor parking or which have been designated by any governmental entity as being
restricted to certain users. Tenant will not be entitled to increase its parking privileges above the maximum number of parking spaces to be provided to Tenant pursuant to Subparagraph 1(s) or
reduce its parking privileges below the minimum number of parking spaces to be provided to Tenant pursuant to 

[MISSING
ORIGINAL COPY] 

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any damage caused by such removal, Landlord may do so at Tenant's sole cost and expense. Tenant agrees to reimburse Landlord for all costs incurred by Landlord to effect any installation, maintenance
or removal of Tenant's account, which amount will be deemed additional rent, and may include, without limitation, all sums disbursed, incurred or deposited by Landlord including Landlord's costs,
expenses and actual attorneys' fees with interest thereon at the Interest Rate from the date of Landlord's demand until paid by Tenant. Any and all sign rights granted to Tenant under this Lease may
be assigned, transferred or otherwise conveyed only by Tenant to an assignee of all or substantially all of Tenant's rights to and estate in the Premises by assignment and assumption in accordance
with Paragraph 24 of this Lease provided the name of such assignee is not an "objectionable name". 

        Notwithstanding
anything to the contrary in this Paragraph 34, subject to City of Irvine approval and the terms and conditions set forth above. Tenant shall also be entitled to have the
name "ALLIANCE BANK" (or such other designation for Tenant's corporation that is not an "objectionable name" as described below) placed in one mutually
acceptable location on the exterior of the Building at eyebrow level ("Eyebrow Sign"). Tenant's right to the Eyebrow Sign shall be effective for one hundred eighty (180) days after Tenant moves into
the Premises. If the Eyebrow Sign is not installed within said 180 day period, Tenant shall be deemed to have waived Tenant's right to the Eyebrow Sign and such right shall be deemed null and void and
of no further force or effect. Tenant's right to an Eyebrow Sign is non-exclusive and Landlord shall have the right to grant eyebrow sign rights to other tenants of the Building at Landlord's
discretion, subject to City of Irvine requirements. 

        As
used herein, an "objectionable name" shall mean any name which relates to an entity which is of a character or reputation, or is associated with a political orientation or faction,
which is inconsistent with the image Landlord desires to maintain for the Building, or which would otherwise reasonably offend a landlord or a Class A building in the Irvine, California area, taking
into consideration the level and visibility of signage rights inherent in Tenant's signage. 

        The
Eyebrow Sign shall be subject to Landlord's prior reasonable approval, the sign criteria for the Building, and Landlord's receipt of all necessary permits and approvals for the City
of Irvine. Tenant shall be solely responsible for payment of all costs and expenses arising from the Eyebrow Sign, including, without limitation, all design, fabrication and permitting costs, license
fees, installation, maintenance, repair and removal costs plus the costs of restoring any underlying surfaces of the Building to the condition existing prior to the installation of said signs. 

        35.    LIMITATION ON LIABILITY.    In consideration of the benefits accruing hereunder, Tenant on behalf of itself and
all successors and assigns of Tenant covenants and agrees that, in the event of any actual
or alleged failure, breach or default hereunder by Landlord: (a) Tenant's recourse against Landlord for monetary damages will be limited to Landlord's interest in the Building including,
subject to the prior rights of any Mortgagee, Landlord's interest in the rents of the Building and any insurance proceeds payable to Landlord; (b) Except as may be necessary to secure jurisdiction of
the partnership or company, no partner or member of Landlord shall be sued or named as a party in any suit or action and no service of process shall be made against any partner or member of Landlord;
(c) no partner or member of Landlord shall be required to answer or otherwise plead to any service of process; (d) No judgment will be taken against any partner or member of Landlord and any judgment
taken against any partner or member of Landlord may be vacated and set aside at any time after the fact; (e) No writ of execution will be levied against the assets of any partner or member of
Landlord; (f) The obligations under this Lease do not constitute personal obligations of the individual members, partners, directors, officers or shareholders of Landlord, and Tenant shall not seek
recourse against the individual members, partners, directors, officers or shareholders of Landlord or any of their personal assets for satisfaction of any liability in respect to this Lease; and (g)
These covenants and agreements are enforceable both by Landlord and also by any partner or member of Landlord. 

31

 

        36.    FINANCIAL STATEMENTS.    Prior to the execution of this Lease by Landlord and at any time during the Term of
this Lease upon ten (10) days prior written notice from Landlord, Tenant agrees to provide Landlord with a current financial statement for Tenant and any guarantors of Tenant and financial statements
for the two (2) years prior to the current financial statement year for Tenant and any guarantors of Tenant. Such statements are to be prepared in accordance with generally accepted accounting
principles and, if such is the normal practice of Tenant, audited by an independent certified public accountant. Landlord acknowledges that Tenant's financial statements contain proprietary, sensitive
and confidential information concerning Tenant and its operations and financial condition, Landlord agrees to maintain such confidentiality and not to disclose the Tenant's financial statements (or
any information reported thereon) to any third party; except that Landlord may, in good faith, provide copies of the financial statements to any lender in connection with obtaining financing secured
by the Building or the Premises. 

        37.    QUIET ENJOYMENT.    Landlord covenants and agrees with Tenant that upon Tenant paying the rent required under
this Lease and paying all other charges and performing all of the covenants and provisions on Tenant's part to be observed and performed under this Lease, Tenant may peaceably and quietly have, hold
and enjoy the Premises in accordance with this Lease without hindrance or molestation by Landlord or its employees or agents. 

        38.    MISCELLANEOUS.    

        (a)    Conflict of Laws.    This Lease shall be governed by and construed solely pursuant to the laws of the State of
California, without giving effect to choice of law principles thereunder. 

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

        (c)    Professional Fees and Costs.    If either Landlord or Tenant should bring suit against the other with respect
to this Lease, then all costs and expenses, including without limitation, actual professional fees and costs such as appraisers', accountants' and attorneys' fees and costs, incurred by the party
which prevails in such action, whether by final judgment or out of court settlement, shall be paid by the other party, which obligation on the part of the other party shall be deemed to have accrued
on the date of the commencement of such action and shall be enforceable whether or not the action is prosecuted to judgment. As used herein, attorneys' fees and costs shall include, without
limitation, attorneys' fees, costs and expenses incurred in connection with any (i) postjudgment motions; (ii) contempt proceedings; (iii) garnishment, levy, and debtor and third party examination;
(iv) discovery; and (v) bankruptcy litigation. 

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

        (e)    Time.    Time is of the essence with respect to the performance of every provision of this Lease in which time
of performance is a factor. 

        (f)    Prior Agreement; Amendments.    This Lease constitutes and is intended by the parties to be a final, complete
and exclusive statement of their entire agreement with respect to the subject matter of this Lease. This Lease supersedes any and all prior and contemporaneous agreements and understandings of any
kind relating to the subject matter of this Lease. There are no other agreements, understandings, representations, warranties, or statements, either oral or in written form, concerning the subject
matter of this Lease. No alteration, modification, amendment or interpretation of this Lease shall be binding on the parties unless contained in a writing which is signed by both parties. 

32

 

        (g)    Separability.    The provisions of this Lease shall be considered separable such that if any provision or part
of this Lease is ever held to be invalid, void or illegal under any law or ruling, all remaining provisions of this Lease shall remain in full force and effect to the maximum extent permitted by law. 

        (h)    Recording.    Neither Landlord nor Tenant shall record this Lease nor a short form memorandum thereof without
the consent of the other. 

        (i)    Counterparts.    This Lease may be executed in one or more counterparts, each of which shall constitute an
original and all of which shall be one and the same agreement. 

        (j)    Nondisclosure of Lease Terms.    Tenant acknowledges and agrees that the terms of this Lease are confidential
and constitute proprietary information of Landlord. Disclosure of the terms could adversely affect the ability of Landlord to negotiate other leases and impair Landlord's relationship with other
tenants. Accordingly, Tenant agrees that it, and its partners, officers, directors, employees, agents and attorneys, shall not intentionally and voluntarily disclose the terms and conditions of this
Lease to any newspaper or other publication or any other tenant or apparent prospective tenant of the Building or other portion of the Development, or real estate agent, either directly or indirectly,
without the prior written consent of Landlord, provided, however, that Tenant may disclose the terms to prospective subtenants or assignees under this Lease. 

        (k)    Non-Discrimination.    Tenant acknowledges and agrees that there shall be no discrimination against, or
segregation of, any person, group of persons, or entity on the basis of race, color, creed, religion, age, sex, marital status, national origin, or ancestry in the leasing, subleasing, transferring,
assignment, occupancy, tenure, use, or enjoyment of the Premises, or any portion thereof. 

        39.    EXECUTION OF LEASE.    

        (a)    Joint and Several Obligations.    If more than one person executes this Lease as Tenant, their execution of
this Lease will constitute their covenant and agreement that (i) each of them is jointly and severally liable for the keeping, observing and performing of all of the terms, covenants,
conditions, provisions and agreements of this Lease to be kept, observed and performed by Tenant, and (ii) the term "Tenant" as used in this Lease means and includes each of them jointly and
severally. The act of or notice from, or notice or refund to, or the signature of any one or more of them, with respect to the tenancy of this Lease, including, but not limited to, any renewal,
extension, expiration, termination or modification of this Lease, will be binding upon each and all of the persons executing this Lease as Tenant with the same force and effect as if each and all of
theme had so acted or so given or received such notice or refund or so signed. 

        (b)    Tenant as Corporation or Partnership.    If Tenant executes this Lease as a corporation or partnership, then
Tenant and the persons executing this Lease on behalf of Tenant represent and warrant that such entity is duly qualified and in good standing to do business in California and that the individuals
executing this Lease on Tenant's behalf are duly authorized to execute and deliver this Lease on its behalf, and in the case of a corporation, in accordance with a duly adopted resolution of the board
of directors of Tenant, a copy of which is to be delivered to Landlord on execution hereof, if requested by Landlord, and in accordance with the by-laws of Tenant, and, in the case of a partnership,
in accordance with the partnership agreement and the most current amendments thereto. If any, copies of which are to be delivered to Landlord on execution hereof, if requested by Landlord, and that
this Lease is binding upon Tenant in accordance with its terms. 

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

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        40.    UNION LABOR.    Notwithstanding anything in this Lease to the contrary, Tenant covenants and agrees that all
contractors and subcontractors at any tier performing any construction, repair, refurbishment, alteration or restoration with respect to the Premises, including, without limitation, with respect to
tenant improvements, build-outs, alterations, additions, improvements, renovations, repairs, remodeling, painting and installation of fixtures, mechanical, electrical and plumbing work, installation,
repair and alteration of data, security and telecommunication cabling and related improvements and fixtures at the Premises, low voltage or elevator equipment or systems or other similar building
equipment and systems, or with respect to any other construction work in, on, or to the Premises or elsewhere within the Building on Tenant's behalf, shall: (i) be bound by and signatory to a
collective bargaining agreement with a labor organization (a) whose jurisdiction covers the type of work to be performed on the Premises and/or within the Building, and (b) who is affiliated with the
Building and Construction Trades Department of the AFL-CIO; and (ii) each such contractor or subcontractor shall observe area standards for wages and other terms and conditions of employment,
including fringe benefits. Any violation of this Paragraph 40 shall be deemed a material default under this Lease. Notwithstanding the foregoing, in the event of an emergency situation (i.e.,
unanticipated and outside of the normal course of business) which either has materially interrupted or presents an immediate threat of material disruption of data, security or telecommunications
functions at the Premises necessary for the conduct of Tenant's business (any such event, a "Labor Exception Event"), Tenant may engage a contractor not meeting the requirements of this Paragraph 40
so long as (i) such engagement is limited, to the greatest extent practicable, to the immediate resolution or mediation of such Labor Exception Event (e.g., providing a short-term, temporary solution
or service alternative relating to a telecommunications equipment failure which would allow the Tenant's business to continue functioning in the short-term, as opposed to any related, subsequent
installation of a new telecommunications system in the Premises, which installation would require the use of union labor meeting the requirements set for above), and (ii) Tenant shall notify Landlord
in writing of such Labor Exception Event as soon as is practicable (which, depending on the nature and urgency of the specific situation, may require notification prior to seeking to use non-union
labor in response to the Labor Exception Event, and, in all events, shall require notification as soon thereafter as is possible), which notice shall specify the specific nature of the Labor Exception
Event, the work, which any non-union contractor is to perform as permitted hereunder, and any expected subsequent or related work which would then be performed by contractors and subcontractors
meeting the union labor requirements set forth above. 

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        IN
WITNESS WHEREOF, the parties have caused this Lease to be duly executed by their duly authorized representatives as of the date first above written. 

	TENANT:	LANDLORD:
	

ALLIANCE BANK,

a California banking corporation	

MAIN & MAC II, LP,

a Delaware limited partnership
	

 	

 	

 	

By:	

KNMM II, LLC,
	By:	/s/  CURTIS S. REIS      
	 	a Delaware limited liability company
	 	Print Name:	CURTIS S. REIS	 	By:	KDC-OC II, LLC,
	 	 	
	 	 	a Delaware limited liability company
	 	Print Title:	CHAIRMAN & PRESIDENT	 	 	 	 	 	 
	 	 	
	 	 	By:	Koll Development Company, LLC

a Delaware limited liability company

Its: Member
	

 	

 	

 	

 	

 	

 	

By:	

/s/  NADER A. SHAH      

	 	 	 	 	 	 	 	Name:	Nader A. Shah

	 	 	 	 	 	 	 	Title:	Vice President, Development

35

  

 
 

ADDENDUM TO LEASE    
  

        This ADDENDUM is attached to, made a part of, incorporated into and amends and supplements that certain Office Building Lease
dated                  , 2001 (the
"Lease"), by and between MAIN & MAC II, LP, a Delaware limited partnership ("Landlord"), and ALLIANCE BANK, a California banking corporation ("Tenant"), Landlord and Tenant agree that, notwithstanding
anything contained in the Lease to the contrary, the provisions set forth in this Addendum will be deemed to be a part of the Lease and will supersede any contrary provision in the Lease and shall
prevail and control for all purposes. All references in the Lease and this Addendum to the defined term "Lease" are to be construed to mean the Lease as amended and supplemented by this Addendum.
Terms which are not defined in this Addendum have the meanings given to them in the Lease. The paragraphs below are numbered consecutively with those in the Lease. 

        41.  OPTION
TO EXTEND 

        (a)  Subject
to the terms of this Paragraph 41 and Paragraph 44, entitled "Options", Landlord hereby grants to Tenant one (1) option (the "Extension Option") to extend the
Term of this Lease with respect to the entire Premises and only the entire Premises then being leased by Tenant for one (1) additional period of five (5) years (the "Option Term"), on the same terms,
covenants and conditions as provided for in this Lease during the initial Term, except that: None of the concessions, allowances or other inducements for Tenant to enter into this Lease shall be
applicable during the Option Term; Monthly Base Rent shall be established based on the "fair market rental rate" for the Premises for the Option Term as defined and determined in accordance with the
provisions of this Paragraph 41 below; the Term, as extended by the Extension Option, shall be five (5) years and Tenant shall have no further options to extend unless otherwise agreed by Landlord in
its sole and absolute discretion; and monthly rates per stall for parking privileges shall be established based on the fair market rental rate for similar parking privileges in similar office
buildings in the Irvine/Newport Beach "Airport" area (the "Comparison Area"), as determined in Landlord's reasonable discretion, but in no event more than the then prevailing rates for parking within
the Project. 

        (b)  The
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 nine (9)
months, and no earlier than the date which is twelve (12) months prior to the expiration of the initial Term of this Lease. 

        (c)  The
term "fair market rental rate" as used in this Addendum shall mean the annual amount per rentable square foot or per parking space (by type), which as of the date of
determination is projected for and throughout the Option Term to be acceptable to a willing, new, non-expansion, non-renewal and non-equity tenant of credit worthiness comparable to Tenant (excluding
sublease and assignment transactions), and a willing landlord of a similar quality office building located in the Comparison Area, in an arm's length transaction (what Landlord is accepting in then
current transactions for the Building shall be considered for purposes of determining rent for the Option Term), for space of comparable size or greater, comparable in quality and floor height as the
leased area at issue taking into account the age and layout of the existing improvements in the leased area at issue and taking into account items that professional real estate brokers customarily
consider, including, but not limited to, rental rates, office space availability, tenant size, tenant improvement allowances, operating expenses and allowance, parking charges, and any other lease
considerations, if any, then being charged or granted by Landlord or the lessors of such similar office buildings. 

        (d)  In
the event where a determination of fair market rental rate is required under the Lease, Landlord shall provide written notice of Landlord's determination of the fair
market rental rate not later than thirty (30) days after the last day upon which Tenant timely exercises the right giving rise to the necessity for such fair market rental rate determination. Tenant
shall have thirty (30) days ("Tenant's Review Period") after receipt of Landlord's notice of the fair market rental rate within which to (i) accept such fair market rental rate, or (ii) reasonably
object thereto in writing. Failure of 

1

 

Tenant to so object to the fair market rental rate submitted by Landlord in writing within Tenant's Review Period shall conclusively be deemed Tenant's approval and acceptance thereof. If within
Tenant's Review Period Tenant reasonably objects to the fair market rental rate submitted by Landlord, Landlord and Tenant will meet meet together with their respective legal counsel to present and
discuss their individual determinations of the fair market rental rate for the Premises under the parameters set forth in Paragraph (c) above and shall diligently and in good faith attempt to
negotiate a rental rate on the basis of such individual determinations. Such meeting shall occur no later than ten (10) business days after Tenant objects to the fair market rental submitted by
Landlord. The parties shall each provide the other with such supporting information and documentation as they deem appropriate. At such meeting if Landlord and Tenant are unable to agree upon the fair
market rental rate, they shall each submit to the other their respective best and final offer as to the fair market rental rate. If Landlord and Tenant fail to reach agreement on such fair market
rental rate within five (5) business days following such a meeting (the "Outside Agreement Date"), Tenant's Option will be deemed null and void unless Tenant demands appraisal by written notice to
Landlord within five (5) business days thereafter, in which event each party's determination shall be submitted to appraisal in accordance with the provisions below. 

        (e)  (i)    Landlord
and Tenant shall each appoint one appraiser who shall by profession be a real estate broker who has been active over the five (5) year period
ending on the date of such appointment in the leasing of mid to high-rise office space in the Comparison Area. Each such appraiser will be appointed within thirty (30) days after the Outside Agreement
Date. 

        (ii)  The
two (2) appraisers so appointed will within fifteen (15) days of the date of the appointment of the last appointed appraiser agree upon and appoint a third
appraiser who shall be qualified under the same criteria set forth herein above for qualification of the initial two (2) appraisers. 

        (iii)  The
determination of the appraisers shall be limited solely to the issue of whether Landlord's or Tenant's last proposed (as of the Outside Agreement Date) best and
final fair market rental rate for the Premises is the closest to the actual new fair market rental rate for the Premises as determined by the appraisers, taking into account the requirements of
Paragraph (c) and this Paragraph (e) regarding same. 

        (iv)  The
three (3) appraisers shall within thirty (30) days of the appointment of the third appraiser reach a decision as to whether the parties shall use Landlord's or
Tenant's submitted best and final fair market rental rate, and shall notify Landlord and Tenant thereof. During such thirty (30) day period, Landlord and Tenant may submit to the appraisers such
information and documentation to support their respective positions as they shall deem reasonably relevant and Landlord and Tenant may each appear before the appraisers jointly to question and respond
to questions from the appraisers. 

        (v)  The
decision of the majority of the three (3) appraisers shall be binding upon Landlord and Tenant and neither party shall have the right to reject the decision or to
undo the exercise of the applicable Option, and such decision shall be used to establish the rental rate for the Option Term. The cost of each party's appraiser shall be the responsibility of the
party selecting such appraiser, and the cost of the third appraiser shall be shared equally by Landlord and Tenant. 

        (vi)  If
either Landlord or Tenant fails to appoint an appraiser within the time period in Paragraph (e)(i) herein above, the appraiser appointed by one of them shall
within thirty (30) days following the date on which the party failing to appoint an appraiser could have last appointed such appraiser reach a decision based upon the same procedures as set forth
above (i.e., by selecting either Landlord's or Tenant's submitted best and final fair market rental rate), notify Landlord and Tenant thereof and such appraiser's decision shall be binding upon
Landlord and Tenant. 

2

 

        (vii) If
the two (2) appraisers fail to agree upon and appoint a third appraiser, either party, upon ten (10) days written notice to the other party, can apply to the
Presiding Judge of the Superior Court of Orange County to appoint a third appraiser meeting the qualifications set forth herein. The third appraiser, however, selected shall be a person who has not
previously acted in any capacity for either party. 

        (viii)    In
the event that the new Monthly Base Rent is not established prior to end of the initial Term of the Lease, the Monthly Base Rent immediately payable at the
commencement of the applicable Option Term shall be the Monthly Base Rent determined by Landlord. Notwithstanding the above, once the fair market rental is determined in accordance with this section,
the parties shall settle any overpayment on the next Monthly Base Rent payment date falling not less than thirty (30) days after
such determination and shall enter into an amendment to this Lease confirming the terms of the determination. 

        42.  OPTIONS.

        (a)  As
used in this Paragraph, the word "Option" means the Extension Option pursuant to Paragraph 41. 

        (b)  The
Option is personal to the original Tenant executing this Lease and may be exercised only by the original Tenant executing this Lease while occupying the entire
Premises and without the intent of thereafter assigning this Lease or subletting the Premises and may not be exercised or be assigned, voluntarily or involuntarily, by any person or entity other than
the original Tenant executing this Lease. The Option is not assignable separate and apart from this Lease, nor may the Option be separated from this Lease in any manner, either by reservation or
otherwise. 

        (c)  Tenant
will have no right to exercise the Option, notwithstanding any provision of the grant of the Option to the contrary, and Tenant's exercise of the Option may be
nullified by Landlord and deemed of no further force or effect, if (1) Tenant is in default of any monetary obligation or material non-monetary obligation under the terms of this Lease (or if
Tenant would be in such default under this Lease but for the passage of time or the giving of notice, or both) as of Tenant's exercise of the Option or at any time after the exercise of any such
Option and prior to the commencement of the Option Term, or (ii) Landlord has given Tenant two (2) or more notices of default, whether or not such Defaults are subsequently cured, during the
twelve (12) consecutive month period of this Lease immediately prior to delivery of Tenant's option exercise notice. 

        (d)  The
Option is hereby deemed an economic term which Landlord, in its sole and absolute discretion, may or may not offer in conjunction with any future extensions of the
Lease Term. 

        43.  ATM.    Subject
to the terms and conditions set forth in Paragraph 13, Tenant shall have the right all its sole cost and expense to install, operate,
maintain and remove, one automated teller machine/night-drop box ("ATM") in the ground floor lobby, exterior wall or Premises window of the Building adjacent to Tenant's bank branch. Tenant, at its
own cost and expense, shall be solely responsible for providing security for the ATM, and agrees that Landlord shall have no liability or obligation to Tenant with respect thereto. Upon the expiration
or earlier termination of this Lease, Tenant shall remove the ATM from Building and shall repair any and all damage caused by such removal and restore the Building to the condition which existed prior
to the installation of the ATM by Tenant. 

        44.  CONDITIONS
PRECEDENT TO EFFECTIVENESS OF LEASE. 

        As
an express condition precedent to the effectiveness of the Lease and the obligations of the Tenant hereunder, within fifteen (15) business days of the mutual execution and delivery of
the Lease, Tenant shall have obtained and shall have notified Landlord that it has obtained, all regulatory and other governmental approvals necessary, as reasonably determined by Tenant, to establish
a retail bank 

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branch at the Premises. Notwithstanding the foregoing, Tenant shall have the right to waive this contingency in writing on or prior to the expiration of such period. Tenant shall use commercially
reasonable efforts to obtain the subject approvals on or before the expiration of the contingency. In the event that Tenant fails to deliver written timely notice to Landlord that this contingency has
been satisfied (or waived, as the case may be), this Lease shall expire and terminate as of the date of execution hereof, all prepaid rent and security deposits shall be returned by Landlord to
Tenant, and all parties shall be discharged from further obligations or liability under the Lease. 

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QuickLinks

Exhibit 10.8

OFFICE BUILDING LEASE BETWEEN MAIN & MAC II, LP, LANDLORD AND ALLIANCE BANK, TENANT

TABLE OF CONTENTS

OFFICE BUILDING LEASE

ADDENDUM TO LEASE

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