Document:

Exhibit
10.7

O F F I C E   L E A S E

between

Shuwa Investments
Corporation,

a California
corporation

as

Landlord

and

Daniel, Mann,
Johnson & Mendenhall, Inc.,

a California
corporation

and

AeCom Technology,
Inc.,

a Delaware
corporation

together, as

Tenant

June 13, 2001

 

	
  Arco Plaza Office Lease

  	
  Daniel, Mann, Johnson
  & Mendelhall, Inc.

  

 

LIST OF EXHIBITS

Exhibit “A” 
Premises Floor Plan

Exhibit “B” 
Work Letter

Exhibit “C” 
Lease Confirmation

Exhibit “D” 
Estoppel Certificate

Exhibit “E” 
Rules and Regulations

Exhibit “F” 
HVAC Specifications

Exhibit “G” 
Cleaning and Janitorial Services

Exhibit “H” 
Form Non-Disturbance Agreement

Exhibit “I” 
Tenant’s Competitors

Exhibit “J” 
Capital Cost Exclusions

Exhibit “K” 
Prevailing Rates- First Class Buildings

Exhibit “L” 
Tenant’s List of Operating Objections

Exhibit “M” 
Memorandum of Lease

Exhibit “N” 
Market

DEFINED TERMS

	
  AAA

  	
   

  	
  57

  
	
  Acceleration Exercise Notice

  	
   

  	
  49

  
	
  Accepted Tenant

  	
   

  	
  34

  
	
  ACM

  	
   

  	
  19

  
	
  Actual Cost

  	
   

  	
  24

  
	
  ADA

  	
   

  	
  11

  
	
  Additional Corridor Work

  	
   

  	
  50

  
	
  additional rent

  	
   

  	
  6

  
	
  Additional Space Installment

  	
   

  	
  49

  
	
  Additional Space Options

  	
   

  	
  48

  
	
  Adjustment Factors

  	
   

  	
  46

  
	
  AeCom

  	
   

  	
  1

  
	
  Affiliate

  	
   

  	
  35

  
	
  Affiliate Transferee

  	
   

  	
  35

  
	
  Alterations

  	
   

  	
  19

  
	
  Antenna

  	
   

  	
  52

  
	
  Antenna Location

  	
   

  	
  52

  
	
  Applicable Laws

  	
   

  	
  4

  
	
  Approved Hold-Over Period

  	
   

  	
  39

  
	
  Approved Name

  	
   

  	
  53

  
	
  Arbitration Award

  	
   

  	
  57

  
	
  Arbitration Notice

  	
   

  	
  56

  
	
  Arbitrator

  	
   

  	
  56

  
	
  Availability Space

  	
   

  	
  51

  
	
  Availability Space Delivery Date

  	
   

  	
  51

  
	
  Average Consumption

  	
   

  	
  27

  
	
  Bank

  	
   

  	
  51, 55

  
	
  Base Taxes

  	
   

  	
  7

  
	
  Base Year

  	
   

  	
  2

  
	
  Building Common Areas

  	
   

  	
  5

  
	
  Capital Items

  	
   

  	
  10

  
	
  Change In Law Items

  	
   

  	
  10

  
	
  Changes In Law

  	
   

  	
  11

  
	
  Chiller Unit

  	
   

  	
  25

  
	
  Claims Period

  	
   

  	
  16

  
	
  Claims, Costs and Damages

  	
   

  	
  40

  
	
  Commence

  	
   

  	
  32

  
	
  Commencement Date

  	
   

  	
  4

  
	
  Common Areas

  	
   

  	
  4

  
	
  Comparable Transactions

  	
   

  	
  46

  
	
  Comparison Year

  	
   

  	
  7

  
	
  Competitors

  	
   

  	
  54

  
	
  Consideration

  	
   

  	
  35

  
	
  Construction Period

  	
   

  	
  5

  
	
  Control

  	
   

  	
  35

  
	
  Cosmetic Alterations

  	
   

  	
  19

  
	
  Cost Pools

  	
   

  	
  14

  
	
  Cost Saving Devices

  	
   

  	
  10

  
	
  Damage Termination Date

  	
   

  	
  31

  
	
  Damage Termination Notice

  	
   

  	
  31

  
	
  Delivery Condition

  	
   

  	
  5

  
	
  Delivery Date

  	
   

  	
  5

  
	
  Delivery Notice

  	
   

  	
  5

  
	
  Design Problem

  	
   

  	
  20

  
	
  Direct Expenses

  	
   

  	
  7

  
	
  DMJM

  	
   

  	
  1

  
	
  Electrical Cost Threshold

  	
   

  	
  24

  
	
  Electrical Generator

  	
   

  	
  25

  
	
  Electrical Upgrade Work

  	
   

  	
  24

  
	
  Eligibility Period

  	
   

  	
  55

  

 

 

	
  end of the Lease Term

  	
   

  	
  44

  
	
  Estimated Fair Market Rental Rates

  	
   

  	
  45

  
	
  Event of Default

  	
   

  	
  37

  
	
  Excess Direct Expenses

  	
   

  	
  14

  
	
  Exempted Reassessment

  	
   

  	
  8

  
	
  Exemption Compliance

  	
   

  	
  23

  
	
  Exercise Deadline

  	
   

  	
  46, 48

  
	
  Exercise Notice

  	
   

  	
  44

  
	
  Expansion Space Commencement Date

  	
   

  	
  49

  
	
  Expiration Date

  	
   

  	
  1, 44, 1

  
	
  Extension Option

  	
   

  	
  44

  
	
  Extension Options

  	
   

  	
  2

  
	
  Extension Premises

  	
   

  	
  45

  
	
  Extra Parking Spaces

  	
   

  	
  42

  
	
  First Class Buildings

  	
   

  	
  4

  
	
  First Month

  	
   

  	
   

  
	
  First Refurbishment Allowance

  	
   

  	
  46

  
	
  Force Majeure

  	
   

  	
  59

  
	
  Force Majeure Event

  	
   

  	
  59

  
	
  Hazardous Material

  	
   

  	
  18

  
	
  Holidays

  	
   

  	
  24

  
	
  Hourly Charge

  	
   

  	
  27

  
	
  HVAC

  	
   

  	
  10

  
	
  HVAC System

  	
   

  	
  1

  
	
  Identification Signage

  	
   

  	
  54

  
	
  Initial 515 Premises

  	
   

  	
  1, 2

  
	
  Initial Monument Costs

  	
   

  	
  54

  
	
  Initial Premises

  	
   

  	
  1

  
	
  Interest Rate

  	
   

  	
  16

  
	
  J-2 Parking Garage

  	
   

  	
  4

  
	
  J-2 Spaces

  	
   

  	
  41

  
	
  key money

  	
   

  	
  33

  
	
  Land

  	
   

  	
  2

  
	
  Landlord

  	
   

  	
  1

  
	
  Landlord Party

  	
   

  	
  28

  
	
  Landlord’s Broker

  	
   

  	
  2

  
	
  Landlord’s Estimate Notice

  	
   

  	
  30

  
	
  Landlord’s Final Statement

  	
   

  	
  15

  
	
  Landlord’s Mortgagee

  	
   

  	
  36

  
	
  Landlord’s Statement

  	
   

  	
  15

  
	
  Larger Competitor Tenant

  	
   

  	
  54

  
	
  Last Delivery Date

  	
   

  	
  5

  
	
  Law Modifications

  	
   

  	
  30

  
	
  Laws

  	
   

  	
  23

  
	
  Lease

  	
   

  	
  1

  
	
  Lease Offer

  	
   

  	
  57

  
	
  Lease Term

  	
   

  	
  1, 44

  
	
  Lease Year

  	
   

  	
  2

  
	
  Level A Spaces

  	
   

  	
  41

  
	
  Market

  	
   

  	
  46

  
	
  Memorandum

  	
   

  	
  1

  
	
  Monthly Rent

  	
   

  	
  1

  
	
  Month-to-Month Space

  	
   

  	
  51

  
	
  Monument Notice

  	
   

  	
  53

  
	
  Move-In Period

  	
   

  	
  1, 5

  
	
  Non-Disturbance Agreement

  	
   

  	
  51

  
	
  Normal Business Hours

  	
   

  	
  24

  
	
  North Tower

  	
   

  	
  1

  
	
  North Tower Premises

  	
   

  	
  1

  
	
  Notice of Availability

  	
   

  	
  51

  
	
  Notices

  	
   

  	
  60

  
	
  O & M Program

  	
   

  	
  19

  

 

 

	
  Operating Expenses

  	
   

  	
  9

  
	
  Option Deadline Date

  	
   

  	
  48

  
	
  Option Period

  	
   

  	
  44

  
	
  Overlap Period

  	
   

  	
  31

  
	
  Parking Facilities

  	
   

  	
  41

  
	
  Parking Spaces

  	
   

  	
  2, 41

  
	
  Permitted Use

  	
   

  	
  1

  
	
  Premises

  	
   

  	
  1

  
	
  Premises Portion

  	
   

  	
  6

  
	
  Prevailing Party

  	
   

  	
  57

  
	
  Prevailing Rates

  	
   

  	
  42

  
	
  Project

  	
   

  	
  4

  
	
  Project Common Areas

  	
   

  	
  4

  
	
  Project Square Footage

  	
   

  	
  16

  
	
  Property

  	
   

  	
  1

  
	
  Proposition 13 Tax Increase

  	
   

  	
  8

  
	
  Recission Notice

  	
   

  	
  45

  
	
  Reference Rate

  	
   

  	
  15

  
	
  Refusal Notice

  	
   

  	
  57

  
	
  Relocation Premises Portion

  	
   

  	
  43

  
	
  Remodeled Monument Sign

  	
   

  	
  53

  
	
  Renovations

  	
   

  	
  43

  
	
  Rent Commencement Date

  	
   

  	
  1, 5

  
	
  Rent Concessions

  	
   

  	
  46

  
	
  Rentable Area

  	
   

  	
  2

  
	
  Request for Notice of Availability

  	
   

  	
  51

  
	
  Review

  	
   

  	
  16

  
	
  Review Period

  	
   

  	
  20

  
	
  Rules and Regulations

  	
   

  	
  40

  
	
  Second Notice

  	
   

  	
  36

  
	
  Second Refurbishment Allowance

  	
   

  	
  47

  
	
  Secure Areas

  	
   

  	
  28

  
	
  Security Deposit

  	
   

  	
  2

  
	
  Signage Occupancy Threshold

  	
   

  	
  54

  
	
  South Tower

  	
   

  	
  1

  
	
  South Tower Premises

  	
   

  	
  1

  
	
  Space Planning Allowance

  	
   

  	
  2

  
	
  Storage Space

  	
   

  	
  48

  
	
  Submittal Period

  	
   

  	
  45

  
	
  Substitute Parking

  	
   

  	
  41

  
	
  Suite 37001

  	
   

  	
  1

  
	
  Superior Leases and Mortgages

  	
   

  	
  36

  
	
  Supplemental AC Units

  	
   

  	
  26

  
	
  Tax Expenses

  	
   

  	
  7

  
	
  Tenant

  	
   

  	
  1

  
	
  Tenant Improvement Allowance

  	
   

  	
  2

  
	
  Tenant Responsible Improvements

  	
   

  	
  28

  
	
  Tenant Security Systems

  	
   

  	
  25

  
	
  Tenant’s Broker

  	
   

  	
  2

  
	
  Tenant’s Monetary Obligations

  	
   

  	
  30

  
	
  Tenant’s Parking

  	
   

  	
  41

  
	
  Tenant’s Property

  	
   

  	
  20

  
	
  Tenant’s Share

  	
   

  	
  2, 16

  
	
  Term

  	
   

  	
  1

  
	
  Termination Date

  	
   

  	
  47

  
	
  Termination Fee

  	
   

  	
  47

  
	
  Termination Notice

  	
   

  	
  47

  
	
  Termination Right

  	
   

  	
  47

  
	
  Termination Space

  	
   

  	
  47

  
	
  Threshold Value

  	
   

  	
  15

  
	
  Transfer

  	
   

  	
  33

  
	
  Transfer Premium

  	
   

  	
  35

  

 

 

	
  Arco Plaza Office Lease

  	
  Daniel, Mann, Johnson
  & Mendelhall, Inc.

  
	
   

  	
   

  
	
  Transferee

  	
   

  	
  33

  
	
  Useful Life

  	
   

  	
  15

  
	
  Utility Connections

  	
   

  	
  26

  
	
  Utility Spaces

  	
   

  	
  26

  
	
  Utility Units

  	
   

  	
  25

  
	
  Vacancy/Marketing Period

  	
   

  	
  35

  
	
  Voluntary Tax Expense

  	
   

  	
  8

  
	
  Work Letter

  	
   

  	
  1

  
				

 

TABLE OF CONTENTS

	
  

  	
   

  	
  

  	
   

  	
  Page

  
	
  1.

  	
   

  	
  PARTIES

  	
   

  	
  1

  
	
  2.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
  2.1

  	
  Basic Terms

  	
   

  	
  1

  
	
   

  	
   

  	
  2.2

  	
  Additional Terms

  	
   

  	
  2

  
	
  3.

  	
   

  	
  DEMISE AND TERM

  	
   

  	
  4

  
	
   

  	
   

  	
  3.1

  	
  Demise And Term

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
  3.1.1

  	
  Project

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
  3.1.2

  	
  Project Common Areas

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
  3.1.3

  	
  Building Common Areas

  	
   

  	
  5

  
	
   

  	
   

  	
  3.2

  	
  Delivery of Initial Premises and Rent Commencement
  Date

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
  3.2.1

  	
  Delivery of Initial Premises

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
  3.2.2

  	
  Rent Commencement Date

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
  3.2.3

  	
  Separate Commencement Dates

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
  3.2.4

  	
  Commencement of Construction

  	
   

  	
   

  
	
  4.

  	
   

  	
  CONFIRMATION OF RENT COMMENCEMENT DATE

  	
   

  	
  6

  
	
  5.

  	
   

  	
  MONTHLY RENT

  	
   

  	
  6

  
	
  6.

  	
   

  	
  SECURITY DEPOSIT

  	
   

  	
  7

  
	
  7.

  	
   

  	
  DIRECT EXPENSES

  	
   

  	
  7

  
	
   

  	
   

  	
  7.1

  	
  Definitions

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
  7.1.1

  	
  Comparison Year

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
  7.1.2

  	
  Direct Expenses

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
  7.1.3

  	
  Tax Expenses

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
  7.1.4

  	
  Operating Expenses

  	
   

  	
  9

  
	
   

  	
   

  	
  7.2

  	
  Payment For Increases In Direct Expenses

  	
   

  	
  14

  
	
   

  	
   

  	
  7.3

  	
  Annual Cost of Cost-Saving Devices and Amortization
  of Capital Items.

  	
   

  	
  14

  
	
   

  	
   

  	
  7.4

  	
  Manner Of Payment

  	
   

  	
  15

  
	
   

  	
   

  	
  7.5

  	
  Final Statement

  	
   

  	
  15

  
	
   

  	
   

  	
  7.6

  	
  Charges For Which Tenant Is Directly Responsible

  	
   

  	
  15

  
	
   

  	
   

  	
  7.7

  	
  Tenant’s Share

  	
   

  	
  16

  
	
   

  	
   

  	
  7.8

  	
  Tenant’s Audit Rights

  	
   

  	
  16

  
	
   

  	
   

  	
  7.9

  	
  Tenant’s Remedies

  	
   

  	
  16

  
	
  8.

  	
   

  	
  USE OF PREMISES

  	
   

  	
  17

  
	
   

  	
   

  	
  8.1

  	
  Permitted Use

  	
   

  	
  17

  
	
   

  	
   

  	
  8.2

  	
  Restrictions on Use

  	
   

  	
  17

  
	
   

  	
   

  	
  8.3

  	
  (Intentionally Omitted)

  	
   

  	
  18

  
	
   

  	
   

  	
  8.4

  	
  Hazardous Materials - Asbestos

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
  8.4.1

  	
  Definition

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
  8.4.2

  	
  Compliance Cost

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
  8.4.3

  	
  Asbestos Abatement

  	
   

  	
  19

  
	
  9.

  	
   

  	
  ALTERATIONS AND ADDITIONS

  	
   

  	
  19

  
	
   

  	
   

  	
  9.1

  	
  Alterations Requiring Prior Notice

  	
   

  	
  19

  
										

 

 -i-
 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
  9.1.1

  	
  Alterations Requiring Prior Consent

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
  9.1.2

  	
  Other Terms

  	
   

  	
  20

  
	
   

  	
   

  	
  9.2

  	
  Ownership and Surrender

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
  9.2.1 

  	
  Alterations

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
  9.2.2

  	
  Tenant’s Property

  	
   

  	
  21

  
	
   

  	
   

  	
  9.3

  	
  Liens

  	
   

  	
  21

  
	
   

  	
   

  	
  9.4

  	
  Additional Requirements

  	
   

  	
  21

  
	
  

  	
   

  	
   

  	
  9.4.1

  	
  Tenant Responsibilities

  	
   

  	
  21

  
	
  10.

  	
   

  	
  REPAIRS

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
  10.1

  	
  Tenant Repairs

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
  10.2

  	
  Landlord Repairs

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
  10.3

  	
  Tenant Right to Make Repairs

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
  10.4

  	
  COMPLIANCE WITH LAWS

  	
   

  	
  23

  
	
  11.

  	
   

  	
  SERVICES AND UTILITIES

  	
   

  	
  23

  
	
   

  	
   

  	
  11.1

  	
  Landlord’s Services

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
  11.1.1

  	
  HVAC

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
  11.1.2

  	
  Electricity

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
  11.1.3

  	
  Water

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
  11.1.4

  	
  Cleaning Services

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
  11.1.5

  	
  Elevator Service

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
  11.1.6

  	
  Security

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
  11.1.7

  	
  Common Areas

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
  11.1.8

  	
  Directory Board

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
  11.1.9

  	
  Access to Special Tenant Areas, Shafts, Risers and
  Conduits

  	
   

  	
  25

  
	
   

  	
   

  	
  11.2

  	
  Restrictions on Use

  	
   

  	
  26

  
	
   

  	
   

  	
  11.3

  	
  Other Terms Applicable to Extra Utilities and
  Services

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
  11.3.1

  	
  Average Consumption Limits

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
  11.3.2

  	
  After Hours HVAC

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
  11.3.3

  	
  After-Hours Uses of Other Services or Utilities

  	
   

  	
  27

  
	
   

  	
   

  	
  11.4

  	
  Interruption Of Use

  	
   

  	
  27

  
	
  12.

  	
   

  	
  ENTRY BY LANDLORD

  	
   

  	
  27

  
	
   

  	
   

  	
  12.1

  	
  Entry by Landlord

  	
   

  	
  27

  
	
   

  	
   

  	
  12.2

  	
  Landlord Entry Restrictions

  	
   

  	
  28

  
	
   

  	
   

  	
  12.3

  	
  Secure Areas

  	
   

  	
  28

  
	
  13.

  	
   

  	
  INSURANCE

  	
   

  	
  28

  
	
   

  	
   

  	
  13.1

  	
  All-Risk Insurance

  	
   

  	
  28

  
	
   

  	
   

  	
  13.2

  	
  Public Liability And Property Damage Insurance

  	
   

  	
  29

  
	
   

  	
   

  	
  13.3

  	
  Policy Requirements

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
  13.3.1

  	
  General Requirements

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
  13.3.2

  	
  Additional Insureds

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
  13.3.3

  	
  Waivers Of Subrogation

  	
   

  	
  29

  
											

 

 -ii-
 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
  13.4

  	
  Tenant’s Failure To Deliver Policies

  	
   

  	
  29

  
	
   

  	
   

  	
  13.5

  	
  Landlord’s Property Insurance

  	
   

  	
  29

  
	
  14.

  	
   

  	
  DAMAGE OR DESTRUCTION; EMINENT DOMAIN

  	
   

  	
  30

  
	
   

  	
   

  	
  14.1

  	
  Repair of Landlord’s Restoration Areas By Landlord

  	
   

  	
  30

  
	
   

  	
   

  	
  14.2

  	
  Repair of the Tenant Responsible Improvements by
  Tenant

  	
   

  	
  30

  
	
   

  	
   

  	
  14.3

  	
  Damage Estimate; Cooperation; Insurance Proceeds

  	
   

  	
  30

  
	
   

  	
   

  	
  14.4

  	
  Rent Abatement

  	
   

  	
  30

  
	
   

  	
   

  	
  14.5

  	
  Landlord’s Election to Terminate

  	
   

  	
  31

  
	
   

  	
   

  	
  14.6

  	
  Tenant’s Right to Terminate this Lease

  	
   

  	
  31

  
	
   

  	
   

  	
  14.7

  	
  Damage Near the End of Term

  	
   

  	
  32

  
	
   

  	
   

  	
  14.8

  	
  Termination: Advance Payments

  	
   

  	
  32

  
	
   

  	
   

  	
  14.9

  	
  Application to Separate Buildings

  	
   

  	
  32

  
	
   

  	
   

  	
  14.10

  	
  Eminent Domain

  	
   

  	
  32

  
	
   

  	
   

  	
  14.11

  	
  Waiver

  	
   

  	
  33

  
	
  15.

  	
   

  	
  ASSIGNMENT AND SUBLETTING

  	
   

  	
  33

  
	
   

  	
   

  	
  15.1

  	
  Landlord’s Consent Required

  	
   

  	
  33

  
	
   

  	
   

  	
  15.2

  	
  Notice

  	
   

  	
  33

  
	
   

  	
   

  	
  15.3

  	
  Consent By Landlord

  	
   

  	
  33

  
	
   

  	
   

  	
  15.4

  	
  Corporate And Partnership Transactions

  	
   

  	
  34

  
	
   

  	
   

  	
  15.5

  	
  No Release Of Tenant

  	
   

  	
  34

  
	
   

  	
   

  	
  15.6

  	
  Additional Charges

  	
   

  	
  35

  
	
   

  	
   

  	
  15.7

  	
  Additional Terms

  	
   

  	
  35

  
	
   

  	
   

  	
  15.8

  	
  Transfers To Affiliates

  	
   

  	
  35

  
	
   

  	
   

  	
  15.9

  	
  Response to Requests for Consent

  	
   

  	
  36

  
	
  16.

  	
   

  	
  QUIET ENJOYMENT

  	
   

  	
  36

  
	
  17.

  	
   

  	
  MORTGAGEE PROTECTION

  	
   

  	
  36

  
	
   

  	
   

  	
  17.1

  	
  Subordination

  	
   

  	
  36

  
	
   

  	
   

  	
  17.2

  	
  Mortgagee’s Liability

  	
   

  	
  36

  
	
   

  	
   

  	
  17.3

  	
  Mortgagee’s Right To Cure

  	
   

  	
  37

  
	
  18.

  	
   

  	
  ESTOPPEL CERTIFICATES

  	
   

  	
  37

  
	
  19.

  	
   

  	
  DEFAULT

  	
   

  	
  37

  
	
   

  	
   

  	
  19.1

  	
  Monetary Obligations

  	
   

  	
  37

  
	
   

  	
   

  	
  19.2

  	
  Non-Monetary Obligations

  	
   

  	
  37

  
	
   

  	
   

  	
  19.3

  	
  Estoppel Obligations and Non Disturbance Agreements

  	
   

  	
  37

  
	
   

  	
   

  	
  19.4

  	
  Insurance Obligations

  	
   

  	
  37

  
	
  20.

  	
   

  	
  REMEDIES FOR DEFAULT

  	
   

  	
  37

  
	
   

  	
   

  	
  20.1

  	
  General

  	
   

  	
  37

  
	
   

  	
   

  	
  20.2

  	
  Performance By Landlord

  	
   

  	
  38

  
	
   

  	
   

  	
  20.3

  	
  Post-Judgment Interest

  	
   

  	
  38

  
	
  21.

  	
   

  	
  HOLDING OVER

  	
   

  	
  38

  
	
   

  	
   

  	
  21.1

  	
  Tenant Holdover

  	
   

  	
  38

  

 

 -iii-
 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
  21.2

  	
  Short Term Lease Extension

  	
   

  	
  39

  
	
  22.

  	
   

  	
  EXCULPATION

  	
   

  	
  39

  
	
   

  	
   

  	
  22.1

  	
  Definitions

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
  22.1.1

  	
  Liabilities

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
  22.1.2

  	
  Landlord’s Affiliates and Tenant’s Affiliates

  	
   

  	
  39

  
	
   

  	
   

  	
  22.2

  	
  Damage To Persons Or Property

  	
   

  	
  39

  
	
   

  	
   

  	
  22.3

  	
  Satisfaction Of Remedies

  	
   

  	
  39

  
	
   

  	
   

  	
  22.4

  	
  Indemnifications

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
  22.4.1

  	
  Tenant’s Indemnity

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
  22.4.2

  	
  Landlord’s Indemnity

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
  22.4.3

  	
  Nonapplication

  	
   

  	
  40

  
	
  23.

  	
   

  	
  RULES AND REGULATIONS

  	
   

  	
  40

  
	
  24.

  	
   

  	
  [INTENTIONALLY OMITTED]

  	
   

  	
  40

  
	
  25.

  	
   

  	
  BROKERS

  	
   

  	
  41

  
	
  26.

  	
   

  	
  PARKING

  	
   

  	
  41

  
	
   

  	
   

  	
  26.1

  	
  Basic Tenant Parking

  	
   

  	
  41

  
	
   

  	
   

  	
  26.2

  	
  J-2 Spaces and Level A Spaces

  	
   

  	
  41

  
	
   

  	
   

  	
  26.3

  	
  Parking Conditions

  	
   

  	
  41

  
	
   

  	
   

  	
  26.4

  	
  Parking Fees

  	
   

  	
  42

  
	
   

  	
   

  	
  26.5

  	
  Extra Parking Spaces

  	
   

  	
  42

  
	
   

  	
   

  	
  26.6

  	
  Right to Vary

  	
   

  	
  42

  
	
   

  	
   

  	
  26.7

  	
  Prevailing Rates

  	
   

  	
  42

  
	
  27.

  	
   

  	
  AUTHORITY TO ENTER INTO LEASE

  	
   

  	
  43

  
	
  28.

  	
   

  	
  RELOCATION

  	
   

  	
  43

  
	
  29.

  	
   

  	
  LANDLORD RENOVATIONS

  	
   

  	
  43

  
	
  30.

  	
   

  	
  ADDITIONAL PROVISIONS

  	
   

  	
  44

  
	
   

  	
   

  	
  30.1

  	
  Options to Extend Lease Term

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
  30.1.1

  	
  Grant

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
  30.1.2

  	
  Exercise

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
  30.1.3

  	
  Extension With Respect to Less than All of the
  Premises

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
  30.1.4

  	
  Monthly Rent during Each Extension Term

  	
   

  	
  45

  
	
   

  	
   

  	
  30.2

  	
  Refurbishment Allowance at Year 5

  	
   

  	
  46

  
	
   

  	
   

  	
  30.3

  	
  Refurbishment Allowance at Year 10

  	
   

  	
  47

  
	
   

  	
   

  	
  30.4

  	
  Tenant’s Option To Terminate

  	
   

  	
  47

  
	
   

  	
   

  	
  30.5

  	
  Storage Space

  	
   

  	
  48

  
	
   

  	
   

  	
  30.6

  	
  [Intentionally Deleted]

  	
   

  	
  48

  
	
   

  	
   

  	
  30.7

  	
  Options to Add Additional Space

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
  30.7.1

  	
  First Additional Space Option

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
  30.7.2

  	
  Second Additional Space Option

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
  30.7.3

  	
  Third Additional Space Option

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
  30.7.4

  	
  Fourth Additional Space Option

  	
   

  	
  48

  
								

 -iv-
 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
  30.7.5

  	
  Acceleration And Other Timing Issues

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
  30.7.6

  	
  Terms Applicable to the Additional Space

  	
   

  	
  49

  
	
   

  	
   

  	
  30.8

  	
  Right of First Offer

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
  30.8.1

  	
  Request For Availability

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
  30.8.2

  	
  Delivery Date

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
  30.8.3

  	
  Third Party Rights

  	
   

  	
  51

  
	
   

  	
   

  	
  30.9

  	
  Non-Disturbance Agreement

  	
   

  	
  51

  
	
   

  	
   

  	
  30.10

  	
  Available Month-to-Month Leasing

  	
   

  	
  51

  
	
   

  	
   

  	
  30.11

  	
  Satellite Antenna

  	
   

  	
  52

  
	
   

  	
   

  	
  30.12

  	
  Monument Signage

  	
   

  	
  53

  
	
   

  	
   

  	
  30.13

  	
  Interior Signage

  	
   

  	
  54

  
	
   

  	
   

  	
  30.14

  	
  Competitors

  	
   

  	
  54

  
	
   

  	
   

  	
  30.15

  	
  Use of Stairwells

  	
   

  	
  54

  
	
   

  	
   

  	
  30.16

  	
  Abatement of Rent

  	
   

  	
  55

  
	
   

  	
   

  	
  30.17

  	
  Measurement of Rentable Square Feet

  	
   

  	
  56

  
	
   

  	
   

  	
  30.18

  	
  Arbitration

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
  30.18.1

  	
  General Submittals to Arbitration

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
  30.18.2

  	
  JAMS

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
  30.18.3

  	
  Arbitration Procedure

  	
   

  	
  57

  
	
   

  	
   

  	
  30.19

  	
  37th Floor Right of First Refusal

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
  30.19.1

  	
  Restriction

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
  30.19.2

  	
  First Refusal Notice

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
  30.19.3

  	
  Acceptance By Tenant

  	
   

  	
  58

  
	
  31.

  	
   

  	
  GENERAL PROVISIONS

  	
   

  	
  58

  
	
   

  	
   

  	
  31.1

  	
  Joint Obligation

  	
   

  	
  58

  
	
   

  	
   

  	
  31.2

  	
  Marginal Headings

  	
   

  	
  58

  
	
   

  	
   

  	
  31.3

  	
  Time

  	
   

  	
  58

  
	
   

  	
   

  	
  31.4

  	
  Successors And Assigns

  	
   

  	
  58

  
	
   

  	
   

  	
  31.5

  	
  Recordation

  	
   

  	
  58

  
	
   

  	
   

  	
  31.6

  	
  Late Charges

  	
   

  	
  58

  
	
   

  	
   

  	
  31.7

  	
  Prior Agreements; Amendment, Waiver

  	
   

  	
  59

  
	
   

  	
   

  	
  31.8

  	
  Inability To Perform

  	
   

  	
  59

  
	
   

  	
   

  	
  31.9

  	
  Legal Proceedings

  	
   

  	
  59

  
	
   

  	
   

  	
  31.10

  	
  Conveyance Of Premises

  	
   

  	
  59

  
	
   

  	
   

  	
  31.11

  	
  Name

  	
   

  	
  59

  
	
   

  	
   

  	
  31.12

  	
  Severability

  	
   

  	
  60

  
	
   

  	
   

  	
  31.13

  	
  Waiver Of Trial By Jury

  	
   

  	
  60

  
	
   

  	
   

  	
  31.14

  	
  Cumulative Remedies

  	
   

  	
  60

  
	
   

  	
   

  	
  31.15

  	
  Choice Of Law

  	
   

  	
  60

  
	
   

  	
   

  	
  31.16

  	
  Signs

  	
   

  	
  60

  
	
   

  	
   

  	
  31.17

  	
  Right To Lease

  	
   

  	
  60

  

 

 -v-
 

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
  31.18

  	
  Presumptions

  	
   

  	
  60

  
	
   

  	
   

  	
  31.19

  	
  Exhibits

  	
   

  	
  60

  
	
   

  	
   

  	
  31.20

  	
  Submission Of Lease

  	
   

  	
  60

  
	
   

  	
   

  	
  31.21

  	
  Meaning Of Terms

  	
   

  	
  60

  
	
   

  	
   

  	
  31.22

  	
  Notices

  	
   

  	
  60

  
	
   

  	
   

  	
  31.23

  	
  Survival of Indemnities

  	
   

  	
  60

  
	
   

  	
   

  	
  31.24

  	
  Asbestos

  	
   

  	
  60

  
	
   

  	
   

  	
  31.25

  	
  Transportation Management

  	
   

  	
  60

  
	
   

  	
   

  	
  31.26

  	
  Guaranty

  	
   

  	
  61

  
	
   

  	
   

  	
  31.27

  	
  Tenant’s Right to Offset

  	
   

  	
  61

  
	
   

  	
   

  	
  31.28

  	
  Counterparts

  	
   

  	
  61

  
	
   

  	
   

  	
  31.29

  	
  Consent/Duty to Act Reasonably

  	
   

  	
  61

  

 

 -vi-

OFFICE LEASE

1.             Parties.

This Lease, dated for reference purposes only June 13,
2001, is made by and between Shuwa Investments Corporation, a California
corporation (“Landlord”) and Daniel, Mann, Johnson & Mendenhall Inc., a
California corporation (“DMJM”) and AECOM Technology, Inc., a Delaware
corporation (“AeCom,” together with DMJM, “Tenant”).

2.             Definitions.

2.1           Basic Terms. As
used in this Lease, the following terms shall have the meanings set forth
below, subject to the qualifications, adjustments and exceptions set forth
elsewhere in this Lease.

(a)  Initial
Premises:  The “Initial Premises” shall
mean: (i) all of the leasable space on the 3rd, 4th, 8th and 9th floors of the
North Tower (as defined below) as shown on the floor plans attached hereto as Exhibit
“A-1,” “A-2,” “A-3” and “A-4,” (collectively, the “Initial 515 Premises”);
and (ii) the space on the 37th Floor of the South Tower (as defined below), as
shown on the floor plan attached hereto as Exhibit “A-5,” (“Suite 3700”).  The “Premises” shall mean the Initial
Premises and any other space in the Project added to the Initial Premises
pursuant to the terms of this Lease.  The
“North Tower Premises” shall mean the portion of the Premises located in the
North Tower and the “South Tower Premises” shall mean Suite 3700 and any other
portion of the Premises located in the South Tower.

(b)  North
Tower, South Tower, Building:  The “North
Tower” shall mean the office building located at 515 South Flower Street, Los
Angeles, California, including all plazas, lobbies, landscaped areas, office
and commercial space and parking garages. 
The “South Tower” shall mean the office building located at 555 South
Flower Street, Los Angeles, California, including all plazas, lobbies, landscaped
areas, office and commercial space and parking garages.  All references in the Lease to Building shall
mean either or both of the North Tower and/or the South Tower as the context
dictates.

(c)  Permitted
Use: Professional and business office use (excluding any on- site medical care
or medical laboratory use ) consistent with the character of the Building and
as further detailed under Article 8, below.

(d)  Lease
Term:  Fifteen (15) years (plus the days
of any partial month between the Rent Commencement Date (as defined below) and
the Expiration Date as defined below). 
The Lease Term shall commence on the Rent Commencement Date.

(e)  Rent
Commencement Date: Subject to Article 3, below, one hundred fifty (150)
days following the date that the Initial Premises are delivered to Tenant in
Delivery Condition (as defined below in Section 3.2.1, below), plus the “Move-In
Period” as defined in Section 3.2.2, below, (subject to extension of each
period for Construction Period Delays (as defined in Section 5 of the Tenant
Improvement Work Letter attached hereto as Exhibit “B” (the “Work Letter”)).  As provided in Section 3, below, a
separate Rent Commencement Date may be applicable for separate Premises
Portions (defined below).

(f)  Expiration
Date: The last day of the month in which the fifteenth (15th) anniversary of
the Rent Commencement Date occurs, unless the Rent Commencement Date is the
first day of a month, in which case the Expiration Date shall be the day
immediately prior to such anniversary of the Rent Commencement Date.

(g)  Monthly
Rent: For each portion of the Premises as to which a different rental rate
applies below, the “Monthly Rent” for such portion of the Premises shall equal
one-twelfth (1/12) of the product of the annual rental rate applicable to such
portion of the Premises and the number of rentable square feet contained in
such portion of the Premises. The total of all Monthly Rent for all such
portions of the Premises shall be the Monthly Rent for the Premises.

For the Initial
515 Premises:

	
  Lease Years

  	
   

  	
  Annual Rate Per Square Foot of Rentable Area

  	
   

  
	
     1-5

  	
   

  	
  $

  	
  21.00

  	
   

  
	
    6-10

  	
   

  	
  $

  	
  25.00

  	
   

  
	
  11-15

  	
   

  	
  $

  	
  29.00

  	
   

  

 

For Suite 3700:

	
  Lease Years

  	
   

  	
  Annual Rate Per Square Foot of Rentable Area

  	
   

  
	
     1-5

  	
   

  	
  $

  	
  25.00

  	
   

  
	
    6-10

  	
   

  	
  $

  	
  29.00

  	
   

  
	
  11-15

  	
   

  	
  $

  	
  33.00

  	
   

  

 

(h) Rentable Area:

Initial 515
Premises:  Ninety-four thousand eight
hundred (94,800) rentable square feet, to be measured in accordance with the
terms of Section 30.17. 

Suite 3700:
Fourteen thousand three hundred forty (14,340) rentable square feet of space;
provided, however, that either Landlord or Tenant may elect to remeasure Suite
3700 in accordance with the criteria set forth in Section 30.17 within
ninety (90) days following the mutual execution and delivery of this
Lease.  In the event either or both
parties elects to make such remeasurement, and in the event that the parties
shall not agree as to the number rentable square feet contained in Suite 3700
within one hundred and twenty (120) days following the mutual execution and
delivery of this Lease, the number of rentable square feet for Suite 3700 shall
be determined by arbitration in accordance with the provisions of Section
30.18 based on the criteria set forth in Section 30.17.

(i)  Base
Year: Calendar year 2002 (subject to the provisions of Section 3). 

(j)  Tenant’s
Share:  See Section 7.7.

(k)  Security
Deposit: None.

(l)  Landlord’s
Broker: Shuwa Leasing Corporation.

(m)  Tenant’s
Broker: Cushman Realty Corporation.

(n)  Parking
Spaces: See Article 26.

(o)  Tenant
Improvement Allowance: Forty dollars and no/100 ($40.00) per rentable square
foot contained within the Initial 515 Premises, plus forty-five dollars and
no/100 ($45.00) per rentable square foot contained within Suite 3700, which
Tenant Improvement Allowance shall be used by Tenant to improve the Initial
Premises, subject to the terms and conditions of the Work Letter.

(P)  Space
Planning Allowance: Zero and 15/100 dollars ($0.15) per rentable square foot
contained in the Initial Premises (to be paid within fifteen (15) days of the
mutual execution and delivery of this Lease).

(q)  Extension
Options: Tenant shall have two (2) options to extend the Term of the Lease for
an additional period of five (5) years each pursuant to the terms and
conditions set forth in Section 30.1.

2.2  Additional
Terms.

(a)  Land:
The parcel or parcels of land upon which the Project is located.

(b)  Lease
Year: Each twelve (12) month period during the Lease Term with the first (1st)
Lease Year commencing on the Rent Commencement Date and ending on the last day
of the eleventh (11th) calendar month thereafter and the second (2nd) and each
succeeding Lease

 2
 

Year commencing on the
first day of the next calendar month, and with the last Lease Year ending on
the Expiration Date.

	
  (c)  Tenant’s
  Notice Address Prior to Rent Commencement:

  	
   

  	
  Daniel, Mann, Johnson & Mendenhall, Inc.

  3250 Wilshire Boulevard

  Los Angeles, California 90010

  Attention: Senior Managing Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AeCom
  Technology, Inc.

  3250 Wilshire Boulevard

  Los Angeles, California 90010

  Attention: Vice President and Chief

  Administrative Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Paul Hastings
  Janofsky & Walker LLP

  555 South Flower Street, 23rd Floor

  Los Angeles, California 90071

  Attention: Patrick A. Ramsey, Esq.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Cushman Realty
  Corporation

  601 South Figueroa Street, 47th Floor

  Los Angeles, California  90017

  Attention:  Brian Ulf

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tenant’s Notice Address After Rent Commencement:

  	
   

  	
  Daniel, Mann, Johnson & Mendenhall, Inc.

  515 South Flower Street,         Floor

  Los Angeles, California 90071

  Attention: Senior Managing Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AeCom Technology, Inc.

  555 South Flower Street, 37th Floor

  Los Angeles, California 90071

  Attention: Vice President and Chief

  Administrative Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Paul Hastings Janofsky & Walker LLP

  555 South Flower Street, 23rd Floor

  Los Angeles, California 90071

  Attention: Patrick A. Ramsey, Esq.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Cushman Realty Corporation

  601 South Figueroa Street, 47th Floor

  Los Angeles, California  90017

  Attention:  Brian Ulf

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (d)  Landlord’s
  Notice Address:

  	
   

  	
  Shuwa Investments Corporation

  North America Building Management

  Corporation

  515 South Flower Street, Suite 1250

  Los Angeles, California 90071

  Attention: Property Management

  	
   

  	
   

  

 

 3
 

 

	
  

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Shuwa Investments Corporation

  515 South Flower Street, Suite 1270

  Los Angeles, California 90071-2205

  Attention: Asset Management

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Christensen, Miller, Fink, Jacobs, Glaser,

  Weil & Shapiro, LLP

  2121 Avenue of the Stars, 18th Floor

  Los Angeles, California 90067

  Attention: Richard D. Coats, Esq.

  	
   

  	
   

  

 

(e)  First
Class Buildings: The following office buildings located in the “Central
Business District of Downtown Los Angeles, California” (as defined below): 555
West Fifth Street, 725, 777, 801 and 865 South Figueroa Street, 444 South
Flower Street, 333 and 550 South Hope Street, 300, 333 and 350 South Grand Avenue.
Provided, however, where the term First Class Building is used to reference the
standard that Landlord must meet in performing obligations under this Lease, in
no event shall such reference require that Landlord upgrade, improve or otherwise
alter the Base Building or the Building Systems of the Building (through use of
material capital expenditures) to a level higher than the level of maintenance,
replacement and repair standards followed by prudent owner’s of First Class
Building, given the original age, capacity, design and quality of the Building
and Building Systems. Notwithstanding the foregoing, Landlord shall, subject to
Section 10.2 replace particular Building Systems (or components
thereof) or components of the Base Building where needed consistent with the
prudent industry practices of institutional owners of first class projects, in
order to avoid (or rectify) material deteriorations of the proper performance
of such systems or components.

(f)  Applicable
Laws: All applicable governmental regulations, ordinances, and laws.

3.             Demise And Term.

3.1           Demise And Term.
Landlord hereby leases the Premises to Tenant and Tenant hereby leases the
Premises from Landlord, subject to all of the terms, covenants and conditions
in this Lease. The Premises are a part of the North Tower and the South Tower.
The North Tower and the South Tower are part of an office project known as the “Project”.
This Lease shall commence, subject to the provisions of this Lease, on the date
(the “Commencement Date”) on which each of Landlord and Tenant shall execute
and deliver to the other party hereto this Lease (and if one party executes and
delivers this Lease on a date later than the date of execution and delivery by
the other party, the latter date shall be the “Commencement Date” hereunder)
and shall expire on the Expiration Date.

3.1.1        Project. The term “Project”,
as used in this Lease, shall mean (i) the North Tower and the “Common Areas”,
as that term is defined below, (ii) the South Tower, (iii) the land (which is
improved with landscaping, subterranean parking facilities and other
improvements) upon which the North Tower, the South Tower and the Common Areas
are located, and (iv) the parking garage located at 400 South Flower Street,
Los Angeles, California 90071 (the “J-2 Parking Garage”), and (v) at Landlord’s
reasonable discretion, subject to the provisions of Section 3.1.3, any
additional real property, areas, land, buildings or other improvements added
thereto. The Common Areas shall consist of the “Project Common Areas” and the “Building
Common Areas” (which Building Common Areas shall mean both the Common Areas of
the North Tower and the Common Areas of the South Tower).

3.1.2        Project Common Areas.
The term “Project Common Areas”, as used in this Lease, shall mean those
portions of the Project located on the block bordered by Flower, Sixth,
Figueroa and Fifth Streets, and the J-2 Parking Garage, and subject to Section
3.1.3, designated as such by Landlord, and may include, without limitation,
any fixtures, systems, signs, facilities, parking areas, gardens or other
landscaping contained, maintained or used in connection with the Project, and
may include any city sidewalks adjacent to the Project, pedestrian walkway
system, whether above or below grade, park or other facilities open to the

 4
 

general public and
roadways, sidewalks, walkways, parkways, driveways and landscape areas
appurtenant to the Project.

3.1.3        Building Common Areas.
The term “Building Common Areas”, as used in this Lease, shall mean those
portions of the Common Areas located within each Building designated as such by
Landlord, and may include, without limitation, the common entrances, lobbies,
atrium areas, public restrooms, elevators, stairways and access ways, loading
docks, ramps, drives, platforms, passage ways, service ways, common pipes,
conduits, wires, equipment, loading and unloading areas, parking facilities and
trash areas servicing each Building. Subject to the provisions of this Section
3.1.3, Landlord reserves the right from time to time without notice to
Tenant (i) to close temporarily any of the Common Areas; (ii) to make changes
to the Common Areas, including, without limitation, changes in the location,
size, shape and number of street entrances, driveways, ramps, entrances, exits,
passages, stairways and other ingress and egress, direction of traffic,
landscaped areas, loading and unloading areas and walkways; (iii) to add
additional improvements to the Common Areas; (iv) to use the Common Areas while
engaged in making additional improvements, repairs or alterations to the
Project or to any adjacent land, or any portion thereof; and (v) to do and
perform such other acts or make such other changes in, to or with respect to
the Project, Common Areas, the South Tower and the North Tower as Landlord may
deem to be appropriate.  Notwithstanding
any provision of this Lease to the contrary, and except to the extent required
by applicable laws, rules, regulations or orders of any governmental agency
having jurisdiction, Landlord shall not exercise its rights under this Section 3.1.3
or under Sections 3.1.1, 3.1.2 or 29 hereunder in a manner
which would result in the Project not being maintained or operated in a manner
consistent with the standards of First Class Buildings, nor shall the exercise
of Landlord’s rights hereunder result in increasing Tenant’s Monthly Rent
hereunder or increasing Tenant’s payments of its Tenant’s Share of Direct
Expenses, except to the extent that Direct Expenses may include the costs of
maintaining and operating Common Areas affected by changes permitted hereunder,
or otherwise materially and adversely affecting Tenant’s rights, obligations or
leasehold interest hereunder.

3.2           Delivery of Initial
Premises and Rent Commencement Date.

3.2.1        Delivery of Initial
Premises. Delivery to Tenant of possession of the Initial Premises shall be
made by Landlord following Tenant’s delivery to Landlord of a written request
for delivery of the Initial Premises (“Delivery Notice”). Tenant’s Delivery
Notice shall be delivered within ten (10) business days following mutual
execution and delivery of the Lease; provided, however, that if no Delivery
Notice is delivered within such period, Landlord shall deliver the Initial
Premises within ten (10) business days following the mutual execution and
delivery of this Lease in accordance with the provisions of the Work Letter and
otherwise in its then “AS IS” condition (“Delivery Condition”). Tenant may
elect to deliver one Delivery Notice with respect to the Initial 515 Premises
and one Delivery Notice with respect to Suite 3700. The date Landlord so
delivers all or the applicable portion of the Initial Premises shall be
referred to herein as the “Delivery Date” with respect thereto. If Landlord is
unable for any reason to so deliver either Premises Portion (defined in Section
3.2.3) within ten (10) business days following receipt of Tenant’s Delivery
Notice with respect to such Premises Portion, Landlord shall not be subject to
any liability therefor, provided that in the event such Premises Portion is not
delivered within sixty (60) days (the “Last Delivery Date”) following receipt
of Tenant’s applicable Delivery Notice with respect thereto, Tenant may elect
to terminate this Lease with respect to the Premises Portion not delivered, by
delivering written notice of such election to Landlord within ten (10) days
following such Last Delivery Date, provided, however, that the Last Delivery
Date shall be extended one (1) day for each day that the Landlord’s failure to
deliver such Premises Portion is due to Force Majeure (as defined in Section
31.8) or any Tenant Delay (as defined in the Work Letter).

3.2.2        Rent Commencement Date.
The “Rent Commencement Date” shall be, subject to the provisions of Section
3.2.3, the earlier of (i) the date that any portion of the Initial Premises
are occupied by Tenant for the actual conduct of business operations (with “business
operations” not to include any activity related to moving in, delivery and
installation of furniture, fixtures and equipment and related activities) and
(ii) the first day following the end of the Construction Period (as defined
below) and the Move-in Period (as defined below) with respect to the Initial
Premises. With respect to any Premises Portion, “Construction Period” means a
one hundred fifty (150) day period commencing with the Delivery Date with
respect thereto, and “Move-In Period” means the period starting the day
following the end of the Construction Period and ending on the second Sunday
thereafter, provided that (a) if the

 5
 

Construction Period ends
on a day of the week after Wednesday, the Move-In Period shall end on the third
(3rd) Sunday following the end of the Construction Period and (b) both the
Construction Period and Move-In Period shall be extended one (1) day for each
day (or partial day) of Construction Period Delay (as defined in the Work
Letter) in accordance with the provisions of Section 5 of the Work
Letter.

3.2.3        Separate Commencement
Dates.  Notwithstanding the foregoing
reference to one “Delivery Date” for the entire Initial Premises, Tenant may elect
to issue one Delivery Notice for the Initial 515 Premises and a separate Delivery
Notice for Suite 3700 at different times during the period for giving notice;
(in such case, each of such two separate spaces is referred to herein as a “Premises
Portion”).  In the event Tenant elects to
issue multiple Delivery Notices (for multiple Premises Portions ), the Delivery
Date, Construction Period and Move-In Period shall be separately determined for
each such Premises Portion and the occupancy for business operations in any
part of any Premises Portion shall only trigger the occurrence of the Rent
Commencement Date for that Premises Portion. 
If there are separate Rent Commencement Dates (for separate Premises Portions),
the Rent Commencement Date for the Initial 515 Premises shall be deemed to be
the “Rent Commencement Date” of this Lease (for purposes of determining the
commencement of the Lease Term and the rights and obligations of the parties
hereunder that are based on the “Rent Commencement Date”) and the Rent
Commencement Date for Suite 3700 shall have meaning only for determining the
commencement of rent and the commencement of occupancy obligations with respect
to Suite 3700.

3.2.4        Commencement of
Construction. Notwithstanding the provisions of this Section 3.2 to
the contrary, with respect to any Premises Portion where Tenant has commenced
construction work (pursuant to an agreement by and between Landlord and Tenant
permitting such work prior to the mutual execution of the Lease), the Delivery
Date with respect to such Premises Portion shall be the date this Lease becomes
effective by the mutual execution and delivery of this Lease by Landlord and
Tenant (provided that such Premises Portion has been delivered to Tenant in
Delivery Condition (defined in the Work Letter) and otherwise in accordance
with the provisions of the Work Letter), and no Delivery Notice shall be made
with respect to such Premises Portion where any such construction work has
commenced.

4.             Confirmation Of
Rent Commencement Date.

Within thirty (30)
days following Landlord’s request, Tenant shall confirm, to Tenant’s actual
knowledge, the Rent Commencement Date by executing a lease confirmation in the
form attached hereto as Exhibit “C”, but Tenant’s failure to do so shall
not affect the commencement of the Lease Term.

5.             Monthly Rent.

Tenant shall pay
to Landlord as rent for the Premises the Monthly Rent for the Premises as set
forth in Section 2.1 (g). 
Subject to the provisions of Section 3.2.3, the Monthly Rent
shall be payable in advance on or before the first day of the first full
calendar month of the Lease Term following the Rent Commencement Date (the “First
Month”) and on or before the first day of each successive calendar month thereafter
during the Lease Term; provided, however, if there are separate Premises
Portions, Monthly Rent for each Premises Portion shall only commence on the
Rent Commencement Date for such Premises Portion. The Monthly Rent for any
period during the Lease Term which is for less than one (1) month shall be
prorated based on a thirty (30) day month. 
The Monthly Rent and all other rent hereunder shall be paid without
prior notice or demand, without deduction or offset (except as otherwise
provided in this Lease), in lawful money of the United States of America which
shall be legal tender at the time of payment, at the office of the Project or
to another person or at another place (so long as such other place is not
located outside of California) as Landlord may from time to time reasonably
designate in writing.  The term “additional
rent” means all other amounts payable by Tenant to Landlord hereunder (whether
or not designated as additional rent).

 6
 

6.             Security Deposit.  Intentionally Deleted.

7              Direct Expenses.

7.1           Definitions.  As used in this Lease, the following terms
have the meanings set forth below.

7.1.1        Comparison Year.
Each calendar year after the Base Year, all or any portion of which falls
within the Lease Term.

7.1.2        Direct Expenses.
The sum of Tax Expenses and Operating Expenses.

7.1.3        Tax Expenses.
Subject to the provisions of this Section 7.1.3 and Section 7.1.4,
all federal, state, county, or local governmental or municipal taxes, fees,
charges or other impositions of every kind and nature, whether general,
special, ordinary or extraordinary (including, without limitation, real estate
taxes, general and special assessments, transit taxes or charges, business or
license taxes or fees, annual or periodic license or use fees, leasehold taxes
or taxes based upon the receipt of rent, including gross receipts or sales
taxes applicable to the receipt of rent, unless required to be paid by Tenant,
personal property taxes imposed upon the fixtures, machinery, equipment,
apparatus, systems and equipment, appurtenances, furniture and other personal
property owned by Landlord used in connection with the Project), which Landlord
shall pay or incur because of or in connection with the ownership, leasing and
operation of the Project and Land.

7.1.3.1     Subject
to Sections 7.1.3 and 7.1.4, Tax Expenses shall include, without
limitation:

(i)            Any governmental
assessment, tax, fee, levy or charge in addition to, or in substitution,
partially or totally, of any governmental assessment, tax, fee, levy or charge
previously included within the definition of real property tax, it being
acknowledged by Tenant and Landlord that except for Voluntary Tax Expenses (as
defined below), Tax Expenses shall also include any governmental assessments or
the Project’s contribution towards a governmental or cost-sharing agreement for
the purpose of augmenting or improving the quality of services and amenities
normally provided by governmental agencies. It is the intention of Tenant and
Landlord that all such new and increased assessments, taxes, fees, levies, and
charges and all similar assessments, taxes, fees, levies and charges be
included within the definition of Tax Expenses for purposes of this Lease;

(ii)           Any governmental
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 with respect to the receipt of such rent, or upon or with
respect to the possession, leasing, operating, management, maintenance, use or
occupancy by Tenant of the Premises, or any portion thereof;

(iii)          Any governmental
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;

(iv)          Any possessory taxes
charged or levied in lieu of real estate taxes; and

(v)           Any governmental
assessments and taxes related to the Los Angeles County Metropolitan
Transportation Authority Metro Rail system, provided that in any Comparison
Year in which such assessments or taxes are reduced to zero (0), the Base Year
amount of such assessments and taxes shall be reduced to zero (0).

7.1.3.2     The amount of Tax Expenses
for the Base Year attributable to the valuation of the Project and Land,
inclusive of tenant improvements, shall be known as “Base Taxes”. If Tax
Expenses for any Comparison Year are less than the Tax Expenses for the Base
Year, Tenant’s Share of Tax Expenses shall be deemed zero (0) and no offset
shall be permitted against Operating Expenses for such Comparison Year on
account thereof.

7.1.3.3     Any expenses incurred by
Landlord in attempting in good faith to protest, reduce or minimize Tax
Expenses shall be included in Tax Expenses in the calendar

 7
 

year to which such Tax
Expenses relate. Any real property tax and assessment refunds received by
Landlord shall be deducted from Tax Expenses in the calendar year to which such
tax refunds relate. Upon receipt by Landlord of any refund in Tax Expenses
previously paid to Landlord by Tenant under this Section 7, Landlord
shall either, no later than the delivery of the Final Statement for the year in
which Landlord received the refund, pay to Tenant in cash Tenant’s Share of
such refund, or credit such amount against Monthly Rent next coming due hereunder,
provided that if Tenant’s share of such refund exceeds twenty-five thousand
dollars ($25,000), Landlord shall pay Tenant its share within sixty (60) days
following receipt by Landlord of such refund.

7.1.3.4     Notwithstanding anything to
the contrary contained in this Lease, there shall be excluded from Tax Expenses
(i) all excess profits taxes, franchise taxes, gift taxes, capital stock taxes,
inheritance and succession taxes, estate taxes, federal, state and local income
taxes, and other taxes to the extent applicable to Landlord’s general or net
income (as opposed to rents, receipts or income attributable to operations at
the Project), (ii) any items includible as Operating Expenses, (iii) any items
payable by Tenant under Section 7.1.4 of this Lease, (iv) any transfer
taxes incurred in connection with any sale, lease, transfer or financing of the
Project or any portion thereof by Landlord; (v) any fines, interest or
penalties assessed because of Landlord’s negligence or illegal acts or its
failure to pay any taxes or assessments prior to the delinquency date; (vi) any
taxes or assessments which are payments to a government agency for the rights
to make improvements to or renovations of the Buildings, Project or surrounding
area; (vii) any cost, interest or tax penalties incurred as a result of
Landlord’s negligence, inability or unwillingness to make tax payments (or to
file tax filings or returns) when due; (viii) any assessment made pursuant to
the Los Angeles City Fire Safety Improvements District No. 1 (Ordinances 167158
and successors).

Notwithstanding
the foregoing, in the event that a Tax Expense exists due to Landlord’s
voluntary election to have the Project included in an assessment district or
otherwise to make the Project subject to the Tax Expense in question (“Voluntary
Tax Expense”), with respect to such Voluntary Tax Expense such Voluntary Tax
Expense shall be included in Tax Expenses only if the same tax expense is
generally imposed on other First Class Buildings and a majority of such
buildings include such expense as a tax expense billed to their tenants, or if
the same tax expense is not generally imposed on other First Class Buildings,
then such expense shall not be included as a Tax Expense if, and only if, the
purpose is to provide Landlord with funds to make capital improvements to, or
for the benefit of, the Project, the costs of which could not be included as an
Operating Expense under this Lease.

7.1.3.5     Tenant’s Payment of
Certain Tax Expenses. Notwithstanding anything to the contrary contained in
this Lease, in the event that at any time during the first five (5) years of
the Lease Term commencing with the Rent Commencement Date, (i) any change in
ownership (as defined in Division 1, Part 0.5, Chapter 2 of the California
Revenue and Taxation Code) of the Project, the Buildings or any part thereof,
(ii) any similar or comparable sale, encumbrance or transfer of any portion of
the Project, the Buildings or any interest therein, or (iii) any major
alteration of the Project is commenced and/or consummated, and as a result
thereof, and to the extent that in connection therewith, the Project, the
Buildings or any part thereof, is reassessed so as to establish a new base year
for real estate tax purposes under California law (an “Exempted Reassessment”),
then the terms of this Section 7.1.3.5 shall apply.

7.1.3.5.1  The Proposition 13 Tax
Increase. For purposes of this Section 7, the term “Proposition 13
Tax Increase” shall mean that portion of the Tax Expenses (or Operating
Expenses), as calculated immediately following any Exempted Reassessment, which
is attributable to the Exempted Reassessment; provided, however, that the term
Proposition 13 Tax Increase shall not include any portion of the Tax Expenses,
as calculated immediately following the Exempted Reassessment, which is
attributable to assessments pending immediately prior to the Exempted
Reassessment, which assessments were conducted during, and included in, such
Exempted Reassessment, or which assessments were otherwise rendered unnecessary
following the Exempted Reassessment; provided that any Exempted Reassessment
shall include any real estate taxes (or Operating Expenses) which are
attributable to the annual inflationary increase of real estate taxes permitted
to be assessed annually under Proposition 13.

 8
 

7.1.3.5.2  First 5 Year Exclusion.
During the first five (5) years of the initial Lease Term (following the
Commencement Date), any Proposition 13 Tax Increase shall not be included in
Tax Expenses.

7.1.3.5.3  After First 5 Years.
After the first five (5) years of the initial Lease Term, any Proposition 13
Tax Increase shall be included in Tax Expenses. 

7.1.3.6     Proposition 8 Assessment
Reductions. Landlord shall use commercially reasonable efforts to pursue
Proposition 8 (or comparable interim real property) assessed value reductions
in accordance with the provisions of this Section 7.1.3.6. In the event
the assessed value of the Project for the Base Year is less than the maximum
assessed value then allowable for the Project under Proposition 13, for all
Comparison Years thereafter until a “change in ownership” occurs under
Proposition 13, Landlord shall use commercially reasonable efforts to pursue
Proposition 8 or comparable assessed value reductions to minimize the assessed
value of the Project and in the event that prior to such change in ownership,
Landlord fails to use commercially reasonable efforts to pursue such
Proposition 8 or similar assessment reductions and as a result thereof, the
assessed value of the Project for such Comparison Year and/or subsequent
Comparison Years is higher than it otherwise would have been had Landlord used
commercially reasonable efforts to pursue such assessed value reductions, for
each such Comparison Year, Tax Expenses shall be reduced to equal the tax assessments
which would have been in effect if Landlord had used commercially reasonable
efforts to pursue such assessment reduction proceedings.

7.1.4        Operating Expenses.

7.1.4.1     Inclusion.  Subject to the provisions of Section 7.1.4.2,
all expenses of managing, operating, maintaining and repairing the Project and
the Land (“Operating Expenses”), including, but not limited to: water and sewer
charges; insurance premiums for all insurance policies deemed in good faith
necessary by Landlord and consistent with the standards of First Class
Buildings (provided, however, that Operating Expenses shall not include deductibles
[other than deductibles related to earthquake coverage which shall be limited
only as provided in Section 7.1.4.3, below] which in the aggregate are
in excess of two hundred thousand dollars ($200,000) in any one (1) calendar year);
janitorial services; wages of employees engaged in the operation, maintenance
or repair of the Project or the Land, including all customary employee
benefits, Worker’s Compensation and payroll taxes; management fees subject to
the terms of Section 7.1.4.4, below; legal, accounting and other consulting
fees; the cost of air conditioning, heating, ventilation, electricity, water
and other services and utilities; elevator maintenance; costs incurred in
connection with the Project which relate to the operation, repair and
maintenance and replacement (except to the extent a replacement constitutes a
capital expenditure that is not included in Operating Expenses hereunder) of all
systems, equipment or facilities which serve the Project in the whole or in part;
subject to the provisions of Section 7.1.4.2, below, the cost of Capital
Items (defined below) and maintenance and repair of all parking and common areas.

7.1.4.2     Exclusions.  Notwithstanding any provision of this Lease
to the contrary, the following items shall in no case be included in Operating
Expenses:

(a) bad debt expenses and interest, principal, points and
fees on debts (except in connection with the financing of items which pursuant
to Section 7.1.4.1 specifically may be included in Operating Expenses,
to the extent not excluded by Section 7.1.4.2(h)) or principal
repayment, interest or amortization on any ground lease or any ground lease
rental, mortgage or mortgages or any other debt instrument encumbering the Project
(including the land on which the Project is situated) ;

(b) marketing and promotional costs, including without
limitation, attorneys’ fees in connection with the negotiation and preparation
of letters, deal memos, letters of intent, leases, subleases and/or assignments,
space planning costs, and other costs and expenses incurred in connection with
lease, sublease and/or assignment negotiations and transactions with present or

 9
 

prospective tenants or other occupants of the Project,
including without limitation, attorneys’ fees and other costs and expenditures
incurred in connection with disputes with present or prospective tenants or
other occupants of the Project;

(c) real estate brokers’ leasing and other brokerage commissions;

(d) costs, including permit, license and inspection costs,
incurred with respect to the installation of other tenants’ or occupants’
tenant improvements, improvements made for tenants or other occupants in the Project
or costs incurred in renovating or otherwise improving, decorating, painting or
redecorating vacant space for tenants or other occupants in the Project;

(e) the cost of providing any service to any tenant or
occupant of the Project which is paid (or reimbursed) to Landlord directly by
any tenant or other occupant of the Project;

(f) any costs expressly excluded from Operating Expenses
elsewhere in this Lease (or expressly included in Tax Expenses);

(g) costs of any items (including, but not limited to,
costs incurred by Landlord for the repair or damage to the Project) to the
extent Landlord receives reimbursement from insurance proceeds (or would have received
such insurance proceeds if Landlord had carried the insurance required to be
carried by Landlord pursuant to Section 13.5) or from a third party
including, without limitation, condemnation proceeds (such proceeds to be
credited to Operating Expenses in the year in which received, except that subject
to the provisions of this Section 7.1, any deductible amount under any
insurance policy shall be included within Operating Expenses);

(h) capital expenses, capital improvements, capital alterations,
capital equipment, capital repairs and capital replacements, which shall be
determined on a consistent basis in accordance with the prevailing standards of
First Class Buildings (“Capital Items”) except for: (i) Capital Items which are
made to reduce Operating Expenses (“Cost Saving Devices”) which shall be
amortized in conformance with the provisions of Section 7.3,
below; and (ii) with respect to Capital Items (“Change In Law Items”) required
by Changes In Law (as defined below), which shall be amortized in conformance
with the provisions of Section 7.3;

(i) rentals and other related expenses for leasing a heating,
ventilating and air conditioning (“HVAC”) system, elevators, or other items
which if purchased, rather than rented, would constitute a Capital Item not includible
in Operating Expenses pursuant to the provisions of this Lease;

(j) depreciation, amortization and interest payments, except
as specifically included in Operating Expenses pursuant to the terms of this Section
7.1.4.2 and except on materials, tools, supplies and vendor-type equipment
purchased by Landlord to enable Landlord to supply services Landlord might
otherwise contract for with a third party, where such depreciation, amortization
and interest payments would otherwise have been included in the charge for such
third party’s services, all as determined in accordance with sound real estate
management principles, consistently applied, and when depreciation or
amortization is permitted or required, the item shall be amortized over its
reasonably anticipated useful life;

 10
 

(k)  the costs of providing
services, utilities and/or other benefits to any other occupant of the Project
to the extent any such other services, utilities and/or other benefit are not
offered to Tenant on the same basis;

(l)  amounts paid to Landlord or
to subsidiaries or Affiliates (as defined below) of Landlord for goods and/or
services in the Project to the extent the total of such payments exceeds the
cost of procuring such goods and/or services from unaffiliated third parties on
a competitive basis;

(m)  Landlord’s general corporate
overhead and general and administrative expenses;

(n)  advertising and promotional
expenditures, and costs of signs in or on the Project identifying the owner of
the Project or other party;

(o)  electric power costs or
other utility costs for which any tenant directly contracts with the local
public utility or service company (but Landlord shall “gross up” such costs as
if such space was vacant); subject to the provisions of Section 11.1.2.

(p)  costs arising from Landlord’s
charitable or political contributions;

(q)  costs of installing,
maintaining and/or operating any specialty service operated by Landlord
including without limitation, any luncheon club or athletic facility, or the
repair thereof;

(r)  management fees in excess of
the limits set forth in Section

7.1.4.4, below;

(s)  costs, penalties, fines,
awards and interest necessitated by or resulting from the gross negligence of
Landlord, or any of its agents, employees or independent contractors, including
but not limited to Landlord’s negligence in operating the Project, violations
of law, tax penalties incurred as a result of Landlord’s negligence, inability
or unwillingness to make payments or file any tax, informational or other filings
or returns when due;

(t)  Any compensation paid to
clerks, attendants or other persons in commercial concessions operated by
Landlord;

(u)  Costs, expenses and
expenditures to comply with applicable laws, including costs arising from the
Americans with Disabilities Act of 1990, 42 U.S.C. 12101 et seq., as amended (“ADA”),
any handicap law or any other government statute, law, code, ordinance or
regulation in effect or adopted prior to the Commencement Date, and any
statutes, laws, rules, regulations or orders adopted following the Commencement
Date to carry out or implement laws adopted prior to the Commencement Date, if
(but only if) the same are reasonably anticipated by the owners of the First
Class Office Buildings to be likely adopted and implemented in the near future,
(changes in governmental statutes, laws, rules, regulations or orders not
adopted or so reasonably anticipated as of the Commencement Date (and
thereafter effective during the term of this Lease) are referred to herein as “Changes
In Law”);

(v)  Costs incurred in removing
and storing the property of former tenants or occupants of the Project;

 11
 

(w)  Costs incurred by Landlord
in connection with rooftop communications equipment or helipads of other
tenants or occupants of the Buildings or the Project, unless required by law or
for safety purposes;

(x)  the initial construction
cost of the Project or, except to the extent permitted as a Cost Saving Device
or a Change in Law Item, any capital improvements to the Project;

(y)  any costs incurred in
connection with the defense of Landlord’s title to the Project or any portion
thereof;

(z)  costs incurred by Landlord
due to any violation of the terms and conditions of any lease of space or
occupancy agreement in the Project;

(aa) interest, principal, attorneys’ fees, environmental investigations
or reports, points, fees and other lender costs and closing costs on debts or
amortization on any mortgage or mortgages or any other debt instrument
encumbering the Buildings or the Project or any part thereof or on any
unsecured debt;

(bb) salaries of officers, executives or other employees of Landlord, any
affiliate of Landlord, or partners or affiliates of such partners or
affiliates, other than any personnel engaged in the management, operation,
maintenance, and repair of the Project (but not leasing or marketing), provided
the salaries of personnel so engaged (i) shall be prorated to equitably reflect
only the services provided to the Project if such personnel does not work
exclusively for the Project, (ii) shall not be included if such salaries are
typically included in the management fee in accordance with the standards of
First Class Buildings, and (iii) shall not be included if such personnel holds
a position which is generally considered to be higher in rank than the position
of the manager of the Project or the chief engineer of the Project;

(cc) intentionally deleted;

(dd) costs which are reimbursed under any contractor, manufacturer or supplier
warranty (and Landlord shall use reasonable commercial efforts to collect on
such warranties);

(ee) costs for the acquisition of sculpture, paintings or other objects
of art;

(ff) costs, including but not limited to attorneys’ fees associated with
the operation of the business of the entity which constitutes Landlord as the
same are distinguished from the costs of operation of the Buildings, including
partnership accounting and legal matters, costs of defending any lawsuits with
any mortgagee, costs of selling, syndicating, financing, mortgaging or
hypothecating any of Landlord’s interest in the Buildings, Project or any part
thereof,  or outside fees paid in
connection with disputes with other tenants;

(gg) unless the service is offered to tenants of the Project without charge
and is consistent with the services provided by First Class Buildings; (i) the
cost of installing, operating and maintaining any specialty service,
observatory, broadcasting facilities, luncheon club, museum, athletic or
recreational club, or child care facility, and (ii) the cost of installing,
operating and maintaining any other service operated or supplied by or normally
operated or supplied by a third party under an agreement between a third party
and a landlord;

 12
 

(hh) premiums for insurance to the extent Landlord is reimbursed therefor;

(ii) reserves of any kind, including but not limited to replacement reserves,
and reserves for bad debts or lost rent or any similar charge not involving the
payment of money to third parties;

(jj) all assessments shall be paid by Landlord in the maximum number of
installments permitted by law and shall not be included as Tax Expenses or
Operating Expenses except in the year in which the assessment or premium
installment is actually paid; provided that if Landlord elect to make an
assessment payment in any other manner Tax Expenses and Operating Expenses
shall be calculated as if the payments were made in the maximum number of
installments and in the years such installments would have been paid;

(kk) “takeover” expenses, including, but not limited to, the expenses incurred
by Landlord with respect to space located in another building of any kind or
nature in connection with the leasing of space in the Buildings;

(ll) the entertainment expenses of Landlord, its employees, agents, partners
and affiliates in excess of three thousand five hundred dollars ($3,500) per
year;

(mm) any costs recovered by Landlord to the extent such cost recovery allows
Landlord to recover more than 100% of Operating Expenses (or any profit from
Operating Expenses) for any Fiscal Year from tenants of the Building

(nn) any costs or expenses incurred in connection with disputes with present
or prospective tenants or other occupants of the Project;

(oo) any costs incurred in connection with Hazardous Materials (as defined
in Section 8.4) to the extent excluded from Operating Expenses under Section
8.4;

(pp) costs or expenses incurred in connection with asbestos or other Hazardous
Materials as provided in Section 8.4; and

(qq) costs attributable to any material increase in the scope of the parking
system utilized for the Project (such as increased use of valet assisted
parking) from that in effect during the entirety of the Base Year.

7.1.4.3     Special Adjustments for
Earthquake Insurance.  If earthquake
insurance is not obtained in the Base Year Operating Expenses but is added
thereafter, an adjustment shall be made to the Base Year Operating Expenses to
include in Base Year Operating Expenses the costs of earthquake insurance in
the first Comparison Year that earthquake insurance was obtained (and if
earthquake insurance is thereafter canceled, such amount shall not longer be
included in the Base Year Operating Expenses). 
Furthermore  (i) if the premiums
for earthquake coverage included in Operating Expenses during the Base Year are
a prorata or allocated share of the cost for blanket coverage of the Project
and other projects, at no time during any Comparison Year shall the method of
allocation of cost to the Project for its share of the cost of blanket earthquake
insurance coverage be less favorable (for Tenant) than in the Base Year, or
(ii) if the scope of the earthquake insurance is increased over the Base Year,
Operating Expenses for the Base Year shall be increased to reflect the
increased costs, if any, which would have been incurred in the Base Year if such
different basis of coverage had been obtained for the entire Base Year (with
such imputed Base Year costs to be determined on an annualized blended rate
basis if the premiums for such different basis of coverage varied throughout
the Base Year).  In the event that damage
occurs to the Project due to an earthquake,

 13
 

the total amount that
Tenant shall pay as its Tenant’s Share of Operating Expenses for earthquake
insurance deductibles shall not exceed one hundred thousand dollars ($100,000)
in any year or with respect to any earthquake, including foreshock and
aftershocks.

7.1.4.4     Management Fees.  Property management fees and expenses included
within Operating Expenses shall not exceed property management fees and expenses
charged for projects of comparable size (in rentable square feet), provided,
however, in no event shall the property management fee included within Operating
Expenses for any Comparison Year be less than the property management fee
charged and included within Operating Expenses for the Base Year.  If property management fees and expenses are
included within Operating Expenses for any Comparison Year are computed as a
percentage of gross revenues, such percentage applicable to any Comparison Year
shall not exceed one hundred fifty percent (150%) of such percentage applicable
to the Base Year.  Provided, however,
notwithstanding the foregoing, Landlord may include within Operating Expenses a
fair market management fee (and expenses) derived from a competitive bid
process , provided such bid process includes at least three bidders who are not
affiliated with Landlord and the contract is awarded to the lowest bidder

7.1.4.5     Hazardous Materials Costs.  In the event that Landlord’s costs for the
remediation of Hazardous Materials (which are otherwise includable in Operating
Expenses hereunder) in any year exceeds one hundred thousand dollars
($100,000), then for purposes of inclusion within Operating Costs Landlord
shall amortize such total costs over a period of thirty-nine (39) years.

7.2   Payment For Increases In
Direct Expenses.  Tenant shall pay,
as additional rent, Tenant’s Share of the positive excess (“Excess Direct Expenses”),
if any, of Direct Expenses for each Comparison Year over Direct Expenses for
the Base Year in the manner set forth in this Section 7.2.  If, during any period in the Base Year or a
Comparison Year, less than ninety-five percent (95%) of the rentable area of
the Project is occupied by tenants conducting business operations, then an
appropriate adjustment, consistent with sound and neutral institutional real
estate management and accounting principles (and the provisions hereof) shall
be made on a consistent basis to those components of Direct Expenses which vary
with the actual occupancy for that year to reflect the level or amount of
Direct Expenses which would have been incurred for such year if ninety-five percent
(95%) of the rentable area of the Project had been occupied by tenants
conducting business operations throughout that year.  Subject to the provisions of this Section 7.2,
Tenant’s Share of Excess Direct Expenses shall be prorated for any partial Comparison
Year which falls within the Lease Term. 
In addition, if during any particular calendar year (including the Base
Year) Landlord is not furnishing any particular work or service (the cost of
which, if performed by Landlord, would be included in Operating Expenses) to a
tenant who has undertaken to perform such work or service in lieu of the
performance thereof by Landlord for each period, Operating Expenses shall be
deemed to be increased by an amount equal to the additional Operating Expenses
which would reasonably have been incurred during such period by Landlord if
Landlord had at its own expense furnished such work or service to such
tenant.  Landlord shall have the right,
from time to time, to equitably allocate on a basis consistent with the practices
of owners of First Class Buildings (and the calculation of Tenant’s Share
hereunder) some or all of the Direct Expenses among different tenants of the
Project (the “Cost Pools”). Such Cost Pools may include, but shall not be
limited to, separate pools for the office space tenants of the Project and the
retail space tenants of the Project. In the calculation of any expenses
hereunder, it is understood that no expense shall be charged more than
once.  Notwithstanding anything to the
contrary set forth in this Article 7, when calculating Operating
Expenses for the Base Year, Operating Expenses shall exclude the incremental
cost increase resulting from amortization of the capital items, if any,
described on Exhibit “J”.  If and
to the extent in any Comparison Year any component of Operating Expenses that
is directly based on utility rates decreases below the amount of such component
Landlord included in Base Year, then in such Comparison Year, to that extent, the
amount included in Operating Expenses attributable to such utility rate expense
shall be not lower than the amount included for such component in the Base
Year.

7.3   Annual Cost of Cost-Saving
Devices and Amortization of Capital Items. The annual cost of any
Cost-Saving Device properly includible within Operating Expenses shall in no
case exceed the actual savings in Operating Expenses (which would otherwise
have been incurred during such calendar year had such Cost- Saving Device not
been implemented) generated by use or operating of such Cost- Saving Device in
such calendar year.

 14
 

Subject to the foregoing
limitation, a Cost-Saving Device shall be amortized (including interest thereon
at the Reference Rate [as defined below] on the unamortized cost with the
interest rate fixed at the time such expenditure is placed in service) over its
Useful Life or such shorter period of time as reasonably determined by
Landlord. Any Capital Item other than a Cost-Saving Device shall be amortized
over its Useful Life. “Useful Life” shall mean and refer to that period of time
which the subject capital improvement, modification or addition will be
productive and/or useful, without replacement, for the purpose required and
intended at the time of installation. The cost of each Change In Law item shall
be amortized in equal installments of principal and interest (i.e., a standard
mortgage amortization basis with interest thereon at the Reference Rate on the
unamortized cost with the interest rate fixed at the time such expenditure is
placed in service) over its Useful Life. The “Reference Rate” shall mean the
prime lending rate established by BankAmerica plus two percent (2%) or Landlord’s
then effective mortgage interest rate, whichever is lower.

7.4   Manner Of Payment.  Landlord shall deliver to Tenant a statement showing
Landlord’s reasonable estimate of the Direct Expenses for the Base Year and
after the Base Year for each Comparison Year, the amount of Tenant’s Share of
any Excess Direct Expenses based on such estimate (each a “Landlord’s Statement’“),
which Landlord’s Statement shall be in a reasonable line items form.  Commencing as of the first day of each
Comparison Year, Tenant shall pay to Landlord, at the times and in the manner
provided herein for the payment of Monthly Rent, one-twelfth (1/12) of Tenant’s
Share of any such Estimated Excess Direct Expenses as shown by Landlord’s
Statement.  If Landlord’s Statement is furnished
after January 1st of a Comparison Year, then on or before the first day of the
first calendar month following Tenant’s receipt of Landlord’s Statement
(provided that Tenant’s receipt is at least 20 days prior thereto), in addition
to the monthly installment of Tenant’s Share of any such Estimated Excess
Direct Expenses due on that date, Tenant shall pay the amount of Tenant’s Share
of any such Estimated Excess Direct Expenses for each calendar month or fraction
thereof that has already elapsed in such Comparison Year. Notwithstanding any
provision of this Lease to the contrary, in no event shall Tenant be obligated
to pay any amount of Excess Direct Expenses attributable or allocable to the
twelve (12) month period immediately following the Rent Commencement Date.

7.5   Final Statement.  After the end of the Base Year and each
Comparison Year (including the Comparison Year in which the Lease Term
terminates), Landlord shall deliver to Tenant a final statement (“Landlord’s
Final Statement’“) showing a reasonably detailed line item description of
Tenant’s Share of the annual actual Excess Direct Expenses for the prior
calendar year. Landlord shall diligently endeavor to deliver to Tenant the
Landlord’s Statement for each Comparison Year and the Base Year on or before
May 31st of the succeeding year.  If
Tenant’s Share of the amount of actual Excess Direct Expenses due for a
Comparison Year exceeds any amounts paid by Tenant as estimated additional rent
under this Article 7 for such Comparison Year, within thirty (30) days
of delivery of such Landlord’s Statement, Tenant shall pay Landlord the amount
of such excess over the estimated payments already made by Tenant.  If the Tenant’s Share of the amount of actual
Excess Direct Expenses due for a Comparison Year is less than any amounts paid
by Tenant as estimated additional rent for such Comparison Year, the amount of
such overpayment shall be credited against the installments of Monthly Rent
next coming due (immediately following preparation of Landlord’s reconciliation
of actual and Estimated Excess Direct Expenses); provided, however that
overpayments for the Comparison Year in which the Lease Term terminates shall
be paid by Landlord to Tenant within thirty (30) days after delivery of the
Landlord’s Statement. Objections by Tenant shall not excuse or abate Tenant’s
obligation to make the payments required under this Section 7.5 (or
under Section 7.4) pending the resolution of Tenant’s objection.

7.6   Charges For Which Tenant Is
Directly Responsible.  Tenant shall reimburse
Landlord within thirty (30) days following receipt of Landlord’s written demand
for any and all governmental taxes or assessments required to be paid by
Landlord for: (i) taxes attributable to the cost or value of Tenant’s equipment,
furniture, fixtures and other personal property (which does not constitute
Tenant Improvements or Alterations) located in the Premises; (ii) at Landlord’s
election, taxes attributable to the amount that the market value of any tenant
improvements made in or to the Premises by or for Tenant, is in excess of sixty
and no/100 dollars ($60.00) per rentable square foot of the Premises (the “Threshold
Value”); provided, if Landlord makes such election, Landlord shall reduce Tax
Expenses by the total amount that would be reimbursed to Landlord assuming all
other tenants of the Project with tenant improvements having a fair market
value in excess of the Threshold Value made similar

 15
 

reimbursements; or (iii)
such taxes as are assessed upon any document to which Tenant is a party
transferring an interest or an estate in the Premises.

7.7   Tenant’s Share.  Notwithstanding the singular use of the term “Tenant’s
Share’“ throughout this Lease, “Tenant’s Share” shall be defined as follows:
(i) in connection with calculation and payment matters relating to Tax Expenses,
the percentage number corresponding to the fraction derived by dividing the
number of rentable square feet of the Premises by 2,443,000; and (ii) in
connection with matters relating to Operating Expenses, the percentage number
corresponding to the fraction derived by dividing the number of rentable square
feet of the Premises by 2,218,000.  For
purposes of this Lease, the term “Project Square Footage” shall mean (i)
2,443,000 in connection with calculation of Tenant’s Share, as the same relates
to Tax Expenses, and (ii) 2,218,000 in connection with the calculation of
Tenant’s Share as the same relates to Operating Expenses.

7.8   Tenant’s Audit Rights.  Notwithstanding any provision of this Lease
to the contrary, Tenant shall have the right, after reasonable notice and at
all reasonable times during Business Hours, to have it and/or its agents and representatives
inspect and photocopy Landlord’s Project accounting and Direct Expense records
at Landlord’s onsite Project property manager’s office.  Tenant and/or its agents and representatives
shall have the right, for a period of three (3) years following the date any
Landlord’s Statement is delivered to Tenant, to commence to review and/or
examine and photocopy Landlord’s books and records with respect to the Direct
Expenses (and the calculation of Tenant’s Share of Excess Direct Expenses)
covered by such Landlord’s Statement during Normal Business Hours in Landlord’s
onsite Project property management office, upon written notice delivered at
least five (5) business days in advance (a “Review”).  Any such Review shall be performed by an
accounting firm or a firm that performs a combination of real estate and
accounting services who is selected by Tenant and who shall not be compensated
in any respect on a percentage of recovery basis.  There shall be no more than two (2) Reviews
of Direct Expenses for any twelve (12) month period.  Landlord shall only be required to maintain
records of Direct Expenses (i) with respect to each Comparison Year, for three
(3) years following the date the Landlord Final Statement for such Comparison
Year was delivered to Tenant; and (ii) with respect to the Base Year, for three
(3) years following the delivery to Tenant of the Landlord Final Statement for
the first Comparison Year under this Lease. Any Review of any Comparison Year
must commence within three (3) years after Landlord’s delivery to Tenant of the
Landlord Final Statement for such year (“Claims Period”), or the right to a
Review of Tenant’s Share of Excess Direct Expenses for such year shall be
deemed waived.  If after any Review,
Tenant continues to dispute the amounts payable (or in the case of a Base Year,
the Direct Expenses covered) under the Landlord’s Statement in question, and
the parties are unable to resolve such dispute within thirty (30) days
thereafter, either party may demand binding arbitration of the dispute pursuant
to the arbitration provisions set forth in Section 30.18.  Tenant agrees that any Review performed
hereunder shall be at its expense, unless it is determined that Tenant’s Share
of Excess Direct Expenses for the entire period under Review was overstated by
five percent (5%) or more, in which event Landlord shall pay for all of Tenant’s
costs and expenses of such Review provided in no event shall Landlord be
required to pay costs in excess of the amount Tenant is entitled to receive as
a refund of Excess Direct Expenses. 
Pending resolution of any disputes as to Tenant’s Share of Excess Direct
Expenses, Tenant shall pay to Landlord any rent adjustments alleged to be due
from Tenant as reflected on the Landlord Final Statement or any invoice issued
on the basis thereof.  Any overpayment by
Tenant of Tenant’s Share of Excess Direct Expenses agreed to by Landlord
following a Review or determined through arbitration (together with interest
thereon calculated at the Interest Rate (defined below) from the date of overpayment
until repaid in full) shall be paid by Landlord to Tenant or credited against
all rent hereunder next due; provided, if this Lease shall have expired or
terminated, Landlord shall, within ten (10) days of the determination that
there has been an overpayment, pay in cash to Tenant such overpayment and interest.  The “Interest Rate” as used in this Lease
shall mean the lower of ten percent (10%) per annum or the maximum lawful rate
of interest.

7.9   Tenant’s Remedies.  In addition to such other limitations on
Tenant’s damages and remedies as set forth in this Lease, Tenant’s remedy for
Landlord’s default under any terms of this Section 7 shall be limited to
monetary damages and in no event shall Tenant’s remedies include the right to
terminate this Lease.

 16

8.             Use Of Premises.

8.1   Permitted Use.  Subject to the provisions of this Section
8.1, Tenant shall use the Premises only for the Permitted Use and shall not
use or, to the extent such use is within its control, permit the Premises to be
used for any other purpose without the prior written consent of Landlord, which
may be withheld in Landlord’s sole discretion. Tenant may use portions of the
Premises for the following ancillary uses provided the portions of the Premises
so used, and the extent such uses, are consistent with or compatible with the
normal office operations of a tenant occupying approximately one hundred
thousand (100,000) rentable square feet in a major first class office project
(or with respect to the South Tower Premises, a tenant occupying approximately
fifteen thousand (15,000) rentable square feet of space):

(a)  private restrooms;

(b)  dining facilities and service kitchens;

(c)  document processing and computer data
centers;

(d)  copy, printing and document production
centers;

(e)  mailroom facilities;

(f)  classrooms, testing rooms and training rooms
and or centers;

(g)  conference rooms and facilities;

(h)  storage, file and safe facilities;

(i)  vending machines; and

(j)  recreational facilities;

provided, however, that
any portions of the Premises used for the purposes described above shall
exclusively serve Tenant and any permitted occupant of the Premises (including
Affiliates and permitted subtenants of Tenant) and their respective employees,
members, officers, directors, and Tenant’s guests having business with Tenant
unrelated to the usage of Premises described in (a) through (j). Subject to
Landlord’s prior approval, which approval shall not be unreasonably withheld,
Tenant may contract with third party independent contractors to provided
limited services such as food service, messenger service or copy service to
Tenant at the Premises who shall be deemed to be permitted occupants of the
Premises for this purpose only and that the same shall not be deemed to be an
assignment of this Lease or a subletting of any portion of the Premises.

Notwithstanding
the foregoing statements of specific ancillary uses for the Premises, in no
event shall any such statement imply that Landlord represents that such any use
is permitted under applicable Laws or that Landlord agrees to perform or permit
any work to the Base Building (as defined below) or Building Systems (as
defined below) to accommodate such uses. Any use of the Premises specified
above shall be permitted only to the extent permitted by Applicable Laws and
subject to all other restrictions of the Lease including, without limitation,
those pertaining to the construction of the Tenant Improvements, the
performance of Alterations, the release of odors, noise or vibrations that may
disturb other tenants, and insurance matters. As used herein “Base Building”
shall mean:  the structural portions of
the Building including the foundation, floor/ceiling slabs, roof, curtain wall,
exterior glass, columns, beams, shafts, stairs, stairwells, elevator cabs and
Common Areas and the Base Building washrooms and “Building Systems” shall mean
the basic mechanical, electrical, life safety, plumbing, telecommunications,
sprinkler systems and heating, ventilating and air-conditioning systems
necessary for the operation of the Building and the provision of services and
utilities as required herein.

8.2   Restrictions on Use.  Subject to the provisions of this Section
8.2 and Section 31.28, (a) Tenant shall not do or to the extent the
same is within Tenant’s control, permit anything to be done in or about the
Premises nor bring or keep anything therein which shall:  (i) materially increase the existing rate of,
cause the cancellation of or otherwise materially and adversely affect any casualty
or other insurance for the Project or any of its contents procured by

 17
 

Landlord (except where
Tenant agrees to reimburse Landlord for any such increase in cost); (ii)
obstruct or interfere with the occupancy of other tenants or occupants of the
Project; (iii) cause any nuisance in or about the Premises or the Project; or
(iv) impair the proper and economic maintenance, operation and repair of the
Project or any potion thereof, (b) Tenant shall not use or allow any part of
the Premises to be used for the storage, manufacturing or sale of food or
beverages (excluding incidental food and beverage storage, preparation and
consumption reasonably associated with office use) or for the manufacture, retail
sale or auction onsite of tangible merchandise, goods or property of any kind
which is located within the Premises, or as a school or classroom, or for any
unlawful or objectionable purpose; provided, however that Tenant shall be permitted
to conduct periodic training classes and seminars in the Premises and (c)
Tenant shall not commit or permit to be committed any waste to the Premises or
the Project.

8.3   (Intentionally Omitted)

8.4   Hazardous Materials -
Asbestos.

8.4.1        Definition.  As used herein, the term “Hazardous Material”
means any hazardous or toxic substance, material or waste which is or becomes regulated
by, or is dealt with in, any local governmental authority, the State of
California or the United States Government. Accordingly, the term “Hazardous Material”
includes, without limitation, any material or substance which is (i) defined as
a “hazardous waste,” “extremely hazardous waste” or “restricted hazardous waste”
under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of
the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous
Waste Control Law), (ii) defined as a “hazardous substance” under Section 25316
of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous
Materials Release Response Plans and Inventory), (iii) defined as a “hazardous
substance” under Section 25281 of the California Health and Safety Code,
Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (iv)
petroleum, (v) asbestos, (vi) listed under Section 9 or defined as
hazardous or extremely hazardous pursuant to Section 11 of Title 22 of the
California Administrative Code, division 4, Chapter 20, (vii) designated as a “hazardous
substance” pursuant to Section 311 of the Federal Water Pollution Control Act
(33 U.S.C. 1317), (viii) defined as a “hazardous waste” pursuant to Section 1004
of the Federal Resource Conservation and Recovery Act, 42 U.S.C. (S) 6902 et
seq. (42 U.S.C. (S) 6903), or (ix) defined as a “hazardous substance” pursuant
to Section 101 of the Compensation and Liability Act, 42 U.S.C. (S) 9601 et
seq. (42 U.S.C. (S) 9601).

8.4.2        Compliance Cost.  Tenant acknowledges that Landlord may incur costs
(a) for complying with laws, codes, regulations or ordinances relating to Hazardous
Material, or (b) otherwise in connection with Hazardous Material including,
without limitation, the following:  (i)
Hazardous Material present in soil or ground water; (ii) Hazardous Material
that migrates, flows, percolates, diffuses or in any way moves onto or under
the Project; (iii) Hazardous Material present on or under the Project as a result
of any discharge, dumping or spilling (whether accidental or otherwise) on the
Project by other tenants of the Project or their agents, employees, contractors
or invitees, or by others; and (iv) material which becomes Hazardous Material
due to a change in laws, codes, regulations or ordinances which relate to
hazardous or toxic material, substances or waste. Except as provided below, and
subject to the provisions of Sections 7.1.4.2 and 7.1.4.3 Tenant
agrees that the costs incurred by Landlord with respect to, or in connection
with, the Project for complying with laws, codes, regulations or ordinances
relating to Hazardous Material shall be an Operating Expense, unless the cost
of such compliance, as between Landlord and Tenant, is made the responsibility
of Tenant or Landlord under this Lease. Notwithstanding the foregoing, the
following costs shall not be included in Operating Expenses and shall not be
the obligation of Tenant:  (a) costs incurred
to comply with laws relating to the removal of Hazardous Material which was in
existence on the Project prior to the Commencement Date, and was of such a
nature that a federal, state or municipal governmental authority, if it had then
had knowledge of the presence of such Hazardous Material, in the state, and under
the conditions that it existed on the Project, would have then required the
removal of such Hazardous Material or other remedial or containment action with
respect thereto; (b) costs incurred to remove, remedy, contain, or treat Hazardous
Material, which Hazardous Material is brought onto the Project after the date
hereof by Landlord and is of such a nature, at that time, that a federal, state
or municipal governmental authority, if it had then had knowledge of the
presence of such Hazardous Material, in the state, and under the conditions,
that it exists on the Project, would have then required the removal of such
Hazardous Material or other remedial or containment action with respect thereto;
and (c) costs incurred in

 18
 

connection with or
relating to asbestos abatement, removal, monitoring and reporting. To the
extent any Operating Expense relating to Hazardous Material is subsequently
recovered or reimbursed through insurance, or recovered from responsible third
parties, or by other action, Tenant shall be entitled to a proportionate share
of such Operating Expense to which such recovery or reimbursement relates.

8.4.3        Asbestos Abatement.  Tenant specifically acknowledges that Tenant has
been advised that asbestos and/or asbestos-containing materials (“ACM”)
were used in the initial construction of the Buildings, and may have been used
in connection with various additions and improvements made thereafter from time
to time. Tenant has further been advised that Landlord has started, and is in
the process of pursuing, an asbestos abatement program with respect to the
Building under which most, but not all, of the asbestos and asbestos-containing
materials located in the Building will be removed. In certain areas of the
Building, inclusive of central core areas of the Building, it is not
practicable to remove all of the asbestos or asbestos-containing materials, and
in those instances the remaining asbestos and asbestos-containing materials
have been or will be enclosed, encapsulated or otherwise isolated or stabilized
in such a manner as Landlord believes, based upon professional advice received
by Landlord, and consistent with all Applicable Laws, will minimize any health
risk of having the same remain in the Building. Landlord agrees to comply with
all Applicable Laws relating to the treatment of ACM in the Project. Any
remediation and abatement of ACM in, on and about the Premises or the Project
to be undertaken by Landlord shall be performed in accordance with all
applicable Laws and, following completion of such work, upon Tenant’s request,
Landlord shall provide Tenant with copies of all air sampling tests,
governmental filings and other evidence of such completion as shall be
reasonably required by Tenant, subject to such conditions relating to the
confidentiality of such information as Landlord may reasonably require. Such
ACM remediation and abatement, and all other activities (including
construction, alteration, maintenance and repair activities and implementation
of the O & M program described below) of Landlord and its agents, contractors
or representatives relevant to, bearing upon, or affected by the existence,
handling, monitoring, remediation, abatement, testing or reporting of ACM (or
prevention of recirculation of friable ACM in each Building or through each
Building’s HVAC system) shall comply with all Laws applicable thereto and shall
be consistent with the standards and practices of First Class Buildings. In
connection therewith, Landlord shall maintain throughout the Term, so long as it
is consistent with the operation of a First Class Building or required by applicable
Laws, an ACM Operations and Maintenance Program (“O & M Program”) for maintaining
compliance with applicable Laws and standards of First Class Buildings with
respect to the presence of ACM, which program shall include (so long as such
procedures are consistent with the operation of a First Class Building or
required by applicable Laws) the monitoring, identifying and warning to prevent
disturbance of remaining ACM on floors on which abatement has been previously
undertaken (including stairwells, elevators and air shafts, core walls and pipe
chase cavities in which ACM may remain). As used herein, the O&M Program
shall mean the following work: (i) removal of all ACM from the ceiling and
exposed interior core columns; (ii) enclosure of window columns, and (iii) encapsulation
of all ACM located under the induction units.

9.             Alterations And
Additions.

9.1           Alterations
Requiring Prior Notice.  Except as
otherwise provided herein, Tenant shall not make or permit to be made any
alterations, additions or improvements (singularly and collectively “Alterations”)
to the Premises or any part thereof without the prior written consent of
Landlord in each instance; provided, however, Landlord’s consent shall not be
required (but Tenant must provide prior written notice) for cosmetic
decorations of the Premises such as installation of wall coverings, wall
hangings and built-in cabinetry, or for the installation of furnishings and,
subject to the provisions of Section 11.2, office equipment
(collectively, “Cosmetic Alterations”).

9.1.1        Alterations Requiring
Prior Consent.  Landlord shall not withhold
its consent (which consent shall be granted or denied in compliance with the
terms of Section 31.28) to any proposed Alterations (or plans and specifications
therefor) unless a Design Problem exists, request therefor is received by
Landlord and Landlord has received all information requested by Landlord in
connection with reviewing said request, and then only by contractors or
mechanics approved by Landlord in writing and upon the approval by Landlord in
writing of fully detailed and dimensioned plans and specifications pertaining to
the Alterations in question, to be prepared and submitted by Tenant at its sole
cost and expense. A “Design

 19
 

Problem” is defined as,
and will be deemed to exist if such Alteration will (i) affect the exterior
appearance of the Building, (ii) adversely affect the Base Building, (iii)
adversely affect the Building Systems, (iv) interfere with any other occupant’s
normal and customary office operation, or (v) fail to comply with Applicable
Laws. Landlord shall, within ten (10) business days of receipt of such request
for consent (together with Tenant’s plans and specifications for the
Alterations and all contractors (including subcontractors) who shall perform them,
if any) (the “Review Period”), either (i) consent to such Alterations in writing
or (ii) in the event that Landlord determines, in Landlord’s reasonable judgment
(consistent with First Class Buildings) that the Alterations proposed by Tenant
shall create a Design Problem, notify Tenant in writing (together with a
reasonably detailed explanation as to the basis for Landlord’s determination), at
which time Tenant shall have the right to cure such Design Problem and perform
the Alterations with Landlord’s consent. Landlord, may, if reasonable to do so
based on the scope of such proposed Alterations, require additional time to
consent by notifying Tenant in writing of the need for such additional time (provided,
however that in no event shall the Review Period be extended longer than twenty
(20) business days). Notwithstanding any provision of this Lease (including the
Work Letter) to the contrary, in no case shall Tenant be required to pay any
charge, fee or reimbursement for expense to Landlord in connection with any
Alterations; provided, however, that in the case where any Alterations (other
than Cosmetic Alterations) proposed by Tenant reasonably requires Landlord’s
consultation with independent consultants, Tenant shall reimburse Landlord for
Landlord’s actual and direct third party costs in so consulting with such
independent consultants.

9.1.2        Other Terms.  Not less than five (5) days nor more than
twenty (20) days prior to commencement of any Alterations (including, without limitation,
Cosmetic Alterations), Tenant shall notify Landlord of its estimated commencement
date so that Landlord may post notices of nonresponsibility about the
Premises.  All Alterations must comply with
all Laws and the final plans and specifications approved by Landlord in
accordance with Section 9.1.1. Landlord’s review and approval of Tenant’s
plans and specifications pursuant to Section 9.1.1 are solely for
Landlord’s benefit.  Landlord shall have
no duty to Tenant, nor shall Landlord be deemed to have made any representation
or warranty to Tenant, with respect to the safety, adequacy, correctness,
efficiency or compliance with Laws of the design of the Alterations, the plans
and specifications therefor, or any other matter regarding the
Alterations.  Tenant shall deliver to
Landlord a complete set of “as built” plans and specifications for each
Alteration (which, for this purpose, may be a marked up set of the record plans
and specifications for the Alterations in question.).

9.2   Ownership and Surrender.

9.2.1        Alterations.  Subject to the provisions of Section 10.1,
upon the expiration of the Term, all Alterations, including, but not limited
to, cabling, wall covering, paneling and built-in cabinetry, but excluding
movable furniture, trade fixtures and office equipment (“Tenant’s Property’“),
shall become a part of the realty and belong to Landlord.  Subject to the provisions of this Section 9.2.1,
upon the expiration or sooner termination of the Lease Term, Tenant shall, at
Tenant’s expense, immediately remove any Alterations made by Tenant which are
designated by Landlord to be removed. 
Tenant may request any time within the last one hundred eighty (180)
days of the Lease Term that Landlord confirm in writing which Alterations shall
be removed and if Tenant makes such written request and identifies this Section
9.2.1 and Landlord’s obligation to respond, Landlord shall confirm the
Alterations that Landlord will require to be removed in a written notice
delivered to Tenant not less than ninety (90) days prior to the expiration of
the Term.  Tenant shall repair any damage
to the Premises caused by such removal. 
Notwithstanding any provision of this Lease to the contrary, in no case
shall Landlord have the right to require Tenant to remove or restore (and
Tenant shall be entitled to leave the same in place in the Premises at the
expiration or early termination of this Lease) any Alteration which both
constitutes an improvement which is reasonably compatible with general business
or office use in a first-class office project and is not the type of Alteration
which would likely be unusable by or objectionable to most subsequent single
floor office tenants in the Project. 
When requesting Landlord’s consent to any Alteration, Tenant may also
request by written notice, which notice shall reference this Section 9.2.1,
that Landlord elect either: (i) that such Alterations will be removed at the
end of the expiration or earlier termination of the Lease; or (ii) that such
Alterations will remain with the Premises at the expiration or earlier
termination of the Lease.  Landlord shall
make such election within thirty (30) days of such notice, which election shall
be binding on Landlord, provided in the event Landlord does not respond within ten
(10) days of receipt of such notice, Tenant shall have the right to deliver a
second notice to

 20
 

Landlord requesting such
election, and Landlord’s failure to respond to such second notice within ten
(10) days thereafter shall be deemed as Landlord’s election to allow such
Alterations to remain at the end of the Term. Notwithstanding the foregoing,
Tenant shall not be required to remove the existing staircase between the third
(3rd) and fourth (4th) floors of the Premises at the end of the Term, provided
that if Tenant elects to renew the Lease with respect to one of the third (3rd)
or fourth (4th) floors and not the other, Tenant shall be obligated to remove
such stairwell and restore the ceilings and floors relating thereto to normal
condition of floors without a staircase.

9.2.2        Tenant’s Property.  Upon the expiration or sooner termination of the
Lease (or within fifteen (15) days thereafter), Tenant shall immediately remove
Tenant’s Property from the Premises and repair any damage to the Premises caused
by the removal of Tenant’s Property. If Tenant fails to remove Tenant’s Property
on or before the expiration or sooner termination of the Lease, and such
failure continues for five (5) business days after delivery of written notice
to Tenant, (i) such Tenant’s Property shall be, at Landlord’s option, deemed
abandoned by Tenant, (ii) Tenant hereby waives any statutory or common law
rights to Tenant’s Property or to assert the means by which Landlord disposes
of Tenant’s Property, (iii) Tenant agrees that Landlord may keep or dispose of
Tenant’s Property in any manner Landlord desires, without liability to Tenant
therefor, and (iv) Tenant shall be obligated to promptly reimburse Landlord for
any reasonable costs incurred by Landlord in removing and disposing of Tenant’s
Property (and for any reasonable costs incurred by Landlord in repairing the
Premises as a result of the removal of Tenant’s Property), provided Landlord
has given Tenant at least ten (10) days notice that such costs will be
incurred.

9.3   Liens.  Tenant shall discharge (or eliminate from
record) by bond or otherwise, from the Premises, the Project and the Land all
liens, security interests and encumbrances (including, without limitation, all
mechanic’s liens and stop notices) created as a result of or arising in
connection with the Alterations or any other labor, services or materials
provided at the request of Tenant or Tenant’s Affiliates (such liens, security
interests and encumbrances singularly and collectively are herein called “Liens”)
within a reasonable period of time following receipt of written request to do
so from Landlord.  If Tenant has failed
to remove any lien within ten (10) days of receipt of the written notice
provided below, Tenant shall be liable to Landlord for all Liabilities incurred
by Landlord or Landlord’s Affiliates in connection with the failure to so
remove such lien.  If Tenant fails to
discharge (or eliminate from record) any Lien caused by Tenant in accordance
with the foregoing, and such failure continues for ten (10) days following
delivery to Tenant of written notice reasonably describing such failure, then,
in addition to any other rights and remedies available to Landlord, Landlord
may take any good faith action necessary to discharge (or eliminate from
record) such Liens, including, but not limited to, payment to the claimant on
whose behalf the Lien was filed.

9.4   Additional Requirements.

9.4.1        Tenant Responsibilities.  All of Tenant’s Alterations shall comply with
all Laws and subject to the provisions of Section 10.4, Tenant shall be
responsible for, shall comply with, and shall perform any work required by any
and all Laws in any way arising out of or in connection with such Alterations.  Tenant, at its expense, shall obtain all necessary
permits and certificates for the commencement and performance of Alterations
and for final approval thereof upon completion, and shall cause the Alterations
to be performed in compliance therewith and with all customary applicable
insurance requirements, and in a good, first-class and workmanlike manner.  Tenant, at its expense, shall diligently
cause the cancellation or discharge of all notices of violation arising from or
otherwise connected with Alterations, or any other work, labor, services or materials
done for or supplied to Tenant or Tenant’s Affiliates, or by any person
claiming through or under Tenant or Tenant’s Affiliates.  Alterations shall be performed so as not to
interfere with any other tenant in the Project, cause labor disharmony therein,
or delay or impose any additional expense on Landlord in the construction,
maintenance, repair or operation of the Project.  Throughout the performance of the
Alterations, Tenant, at its expense, shall carry, or cause to be carried, in
addition to the insurance described in Article 13: (a) Workers’
Compensation insurance in statutory limits, (b) “Builder’s All Risk” insurance
in an amount approved by Landlord and (c) such other insurance as Landlord may
reasonably require, with insurers reasonably satisfactory to Landlord.  Tenant shall furnish Landlord upon request
with satisfactory evidence that such insurance is in effect at or before the
commencement of the Alterations and at reasonable intervals thereafter until
completion of the Alterations.

 21
 

10.           Repairs.

10.1         Tenant Repairs.  Subject to the provisions of this Lease and
the Work Letter, the Premises shall be delivered to Tenant in an “as is” and “all
faults” condition and Landlord shall have no obligation whatsoever to alter,
remodel, improve, repair, decorate or paint the Premises or any part thereof
either prior to or during the Lease Term. Subject to the provisions of this
Lease, Tenant, at its expense, shall keep the Premises and every part thereof
in good condition and repair, reasonable wear and tear excepted and shall, upon
the expiration or sooner termination of the Lease Term, surrender the Premises
to Landlord broom clean and in good condition and repair, ordinary wear and
tear excepted. Tenant waives all rights to make repairs at Landlord’s expense
under Sections 1941 and 1942 of the California Civil Code or under any similar
Laws now or hereafter in effect. If the Premises require repairs due to the
negligence or wilful misconduct of Landlord or its agents, Tenant shall not be
required to make such repairs under this Section except to the extent such
repair work is covered by insurance that Tenant maintains or is required to
maintain hereunder. Notwithstanding the foregoing, Tenant shall have no
obligation to repair damage to the Base Building unless due to Tenant’s gross
negligence or wilful misconduct.

10.2         Landlord Repairs.  Landlord shall maintain and operate the
Project, including the Base Building arid the Building Systems, substantially
in accordance with the standards of First Class Buildings, provided that Tenant
acknowledges that to its current actual knowledge, except for the items described
on Exhibit “L” attached herewith, the Project is currently maintained and
operated in accordance with such standards. 
Landlord at its sole cost and expense (which costs shall be included in
Operating Expenses, unless specifically excluded hereunder) shall maintain and
operate the Project in substantial compliance with all applicable laws, rules
and regulations

Notwithstanding
anything to the contrary contained herein, Landlord shall not be required to
replace or realign the elevator rails of the elevators in order the improve the
quality (i.e., the smoothness) of the movement of the elevators of the
Buildings from floor to floor.

10.3         Tenant Right to Make
Repairs.  If Tenant provides notice
to Landlord of an event or circumstance which requires the action of Landlord
with respect to the providing of utilities and/or services and/or repairs
and/or maintenance and/or compliance as set forth in Sections 8.4.3, 10.2,
10.4.2, and 11.1 of this Lease, and provided Landlord’s failure
to take such action has a material and adverse affect on Tenant’s conduct of
its business within the Premises, and Landlord fails on a timely basis to
provide such action as required by the terms of this Lease, then Tenant may
proceed to take the required action upon delivery of an additional thirty (30)
days notice to Landlord specifying that Tenant is taking such required action
pursuant to this Section, and if such action was required under the terms of
this Lease to be taken by Landlord, then Tenant shall be entitled to prompt
reimbursement by Landlord of Tenant’s reasonable costs and expenses in taking
such action plus interest at the Interest Rate. 
In the event Tenant takes such action, and such work will affect the
Systems and Equipment, the structural integrity of the Building or the exterior
appearance of the Building, Tenant shall use only those contractors used by
Landlord in the Building for such work unless such contractors are unwilling or
unable to perform such work, in which event Tenant may utilize the services of
any other qualified contractor which normally and regularly performs similar
work in the First Class Buildings. 
Tenant shall comply with the terms and conditions of this Lease if
Tenant takes the required action. 
Further, if Landlord does not deliver a detailed written objection to
Tenant, within thirty (30) days after receipt of an invoice by Tenant of its
costs of taking the action which Tenant claims should have been taken by
Landlord, and if such invoice from Tenant sets forth a reasonably
particularized breakdown of its costs and expenses in connection with taking
such action on behalf of Landlord, then Tenant shall be entitled to deduct from
Rent payable by Tenant under this Lease, the amount set forth in such invoice
together with interest at the Interest Rate. 
If, however, Landlord delivers to Tenant,within thirty (30) days after
receipt of Tenant’s invoice, a written objection to the payment of such
invoice, setting forth with reasonable particularity Landlord’s reasons for its
claim that such action did not have to be taken by Landlord pursuant to the
terms of this Lease or that the charges are excessive (in which case Landlord
shall pay the amount it contends would not have been excessive), then Tenant
shall not be entitled to such deduction from Rent, but Tenant may proceed to
institute legal or arbitration proceedings against Landlord to collect the
amount set forth in the subject invoice. 
In the event Tenant prevails in such legal or arbitration proceedings and
receives a final, non-appealable judgment against Landlord, then Landlord shall
pay such judgment to Tenant within thirty (30)

 22
 

final, non-appealable
days of such judgment being entered. If such judgment is not so paid, then
Tenant shall be entitled to deduct from Rent payable under this Lease the
amount of such judgment together with interest thereon at the Interest Rate
from the date of Tenant’s payment of the costs which are the subject of the
judgment until the date of such deduction.

Disputes
concerning this Section 10.3 shall be resolved through the arbitration
provisions set forth in Section 30.18, provided Landlord shall not be
restricted from seeking an injunction against Tenant’s actions through court proceedings.

10.4         COMPLIANCE WITH LAWS.

10.4.1      Tenant shall not use the
Premises or knowingly permit anything to be done in or about the Premises which
shall in any material and adverse way conflict with or violate any present or
future law, statute, ordinance, code, rule, regulation, requirement, license,
permit, certificate, judgment, decree, order or direction of any present or
future governmental authority, agency, department, board, panel or court
(singularly and collectively “Laws”). Except to the extent it is the
responsibility of Landlord to so comply with such Laws under this Section
10.4, Tenant shall, at its expense, promptly comply with all Laws, and with
the requirements of any board of fire insurance underwriters, directly
applicable to the condition, use or occupancy of the Premises (other than
applicable to the Base Building or Building Systems contained in the Premises
except to the extent that the Base Building and/or the Building Systems are
damaged by the actions of Tenant and such damage is not covered by insurance
carried or required to be carried by Landlord under this Lease) or to the
tenant improvements located in or about the Premises. Tenant shall not use or
knowingly permit another person or entity to use any part of the Premises for
the storage, use, treatment, manufacture or sale of Hazardous Materials;
provided, however, that Tenant shall be permitted to store, maintain and use
products in the Premises which are incidental to the operation of its offices,
such as photocopy supplies, secretarial supplies and limited janitorial
supplies, which products contain chemicals which are categorized as Hazardous
Materials. Landlord agrees that the use of such products in the Premises in
compliance with all applicable Laws and in the manner in which such products
are designed to be used shall not be a violation by Tenant of this Section
10.4.

10.4.2      Notwithstanding any
provision of this Lease to the contrary, Landlord (and not Tenant) shall be
responsible, at its expense, to comply with all Laws applicable to the Common
Areas, Base Building, and Building Systems of the Project to the extent
noncompliance with the same shall materially and adversely affect Tenant’s use
of, or operations in, the Premises and with respect thereto shall promptly take
all action necessary to immediately effect full compliance with such Laws if
and to the extent such immediate compliance is required to comply with any
governmental order; provided, however, that in no case shall Landlord be
responsible for any of the foregoing compliance with law obligations to the
extent such compliance is only required due to special (as opposed to the
general range of office use of tenants in the Project) use by Tenant of the
Premises.

10.4.3      Notwithstanding the
foregoing, Landlord and Tenant may utilize exemptions, variances and
grandfather provisions contained in any Law to effect compliance therewith;
provided, however, if Landlord utilizes any of the same to perform its
compliance with law obligations hereunder or under the Work Letter (“Exemption
Compliance”) and at a later date, Tenant is required, pursuant to the
provisions of Section 10.4, to perform such Exemption Compliance,
Landlord shall reimburse Tenant for its actual costs in doing so.

11.           Services And
Utilities.

11.1         Landlord’s Services.  Landlord shall in accordance with the Rules
and Regulations furnish to the Premises the following services and utilities,
which shall, at a minimum, be comparable in quality, quantity and consistency
to those same services provided in First Class Buildings:

11.1.1      HVAC.  HVAC performing at a level consistent with the
Project’s HVAC system design specifications set forth on Exhibit “F”
when necessary for normal comfort for normal office use in the Premises, from
the following periods: (1) with respect to the North Tower Premises: Monday
through Friday, during the period from 7:00 a.m. to 7:00 p.m., and on Saturdays
during the period from 8:00 a.m. to 1:00 p.m.; (2) with respect to the South
Tower Premises: Monday through Friday, during the period from 8:00 a.m. to 6:00
p.m. and on

 23
 

Saturdays during the
period from 9:00 a.m. to 1:00 p.m. (collectively, the “Normal Business Hours”),
except for Sundays and New Year’s Day, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day, Christmas Day and any other nationally and locally
recognized holidays designated in accordance with the practices of the owners
of the First Class Buildings (collectively, the “Holidays”).

11.1.2      Electricity.  Adequate electrical wiring and facilities for
connection to Tenant’s lighting fixtures and incidental use equipment, provided
that total capacity for the incidental use equipment and lighting fixtures does
not exceed an average of eight (8) watts per rentable square foot of the Premises
and provided further that the total amount of such use for 120 volt use shall
be (but not shall not be required to exceed unless Tenant complies with the
following sentence) three (3) watts per rentable square foot of the Premises.
If Tenant desires to have the 120 volt electrical use exceed three (3) watts
per rentable square foot, Landlord shall co-operate with permitting the performance
of the work required to install the transformers, panels or other work
(collectively, the “Electrical Upgrade Work”) necessary to permit such use, provided
that the costs and expense for such Electrical Upgrade Work shall be paid by
Tenant and shall be performed by contractors reasonably approved by Landlord.
Upon installation, all Electrical Upgrade Work shall be part of the Building
Systems and be deemed the property of Landlord. Tenant shall not be charged
hereunder for any additional electrical consumption in the Premises at any time
until the total consumption within the Premises (excluding therefrom electrical
consumption relating to HVAC and fluorescent lighting) exceeds a monthly
consumption level that would exist if Tenant used an average of five (5) watts
per rentable square foot of the Premises during Normal Business Hours (the “Electrical
Cost Threshold”). Any charges to Tenant for electrical consumption within the
Premises above the Electrical Cost Threshold shall not exceed Landlord’s Actual
Cost (defined below) for such excess consumption. “Actual Cost” means the
actual and direct out-of-pocket cost paid by Landlord for the service or
utility supplied without charge for administration, profit or overhead.

11.1.3      Water.  Hot and cold water for use in Base Building
lavatories and other fixtures and amenities consistent with the standards of
First Class Buildings. If Landlord believes that Tenant is consuming water in
its Premises at a rate which materially exceeds the average level of water
consumption (on a per rentable square foot basis) by all tenants and occupants
in the Project, and such matter cannot be resolved following reasonable
discussions with Tenant, then Landlord may (but shall not be obligated to)
install a meter to measure the water furnished in the Premises (the cost of
such meter being paid by Tenant). Tenant shall reimburse Landlord’s Actual Cost
payments to the applicable utility service provided for the amount of water
used by Tenant which is materially in excess of such average in accordance with
the usage set forth on the meter, plus an administrative fee consistent with
administrative fees of First Class Buildings reasonably established by
Landlord.  In all events, Tenant shall
not waste or knowingly permit the waste of water.

11.1.4      Cleaning Services.  Cleaning services except the date of observation
of the Holidays, in and about the Premises, which services shall be provided as
set forth in the attached Exhibit “G”.

11.1.5      Elevator Service.  Landlord shall provide first class nonexclusive,
non-attended automatic passenger elevator service to and from the Premises
during Normal Business Hours consistent with the service provided by First
Class Buildings; provided, however, that Landlord shall provide a minimum of
three (3) passenger elevators serving Tenant’s floors at all times during Normal
Business Hours.  Landlord shall also
provide passenger elevator service (consisting of at least one (1) passenger
elevator serving Tenant’s floors) at all times other than Normal Business
Hours.  Freight elevator service will
also be provided to Tenant after Normal Business Hours at all times upon reasonable
advance notice to Landlord’s property manager. 
Freight elevator service after Normal Business Hours shall be provided
by Landlord, provided Tenant will pay the Building’s customary charge for
after-hours freight elevator service, which is currently thirty-five and no/100
dollars ($35.00) per hour.  The costs charged
to Tenant for after-hours freight elevator service shall be subject to reflect
an incremental increase in Landlord’s Actual Costs for providing such service.

11.1.6      Security.  Tenant and its employees, customers and
contractors (and those of its subleases and permitted occupants) shall be
permitted access to the Premises and the Project’s parking facilities seven (7)
days per week and twenty-four (24) hours per day, provided such access may be
limited, (consistent with the standards of First Class Buildings) by

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Landlord’s Rules and
Regulations of the Project and access to parking shall only be to exercise the
parking rights granted in this Lease. Landlord shall provide security personnel
to escort employees and visitors of Tenant (and its sublessees and permitted
occupants) from the Building lobby to the Project parking facilities during
hours other than Normal Business Hours consistent with the operating standards
of First Class Buildings. In addition to the foregoing, Tenant and Tenant’s
contractors shall have the right (without further payment of rent to Landlord)
to install, repair, replace, remove, operate and maintain such Tenant security
systems and cable, wiring, conduits or other equipment incidental to such
security systems (the “Tenant Security Systems”) as reasonably desired by
Tenant in, on or upon the Premises and in the common stairwells and shafts in
the core of the Building(s) at such locations as reasonably requested by Tenant
and reasonably approved by Landlord. The Tenant Security Systems shall be
designed and operated so as not to interfere with the systems and operations of
the Building. The Tenant Security Systems shall remain the property of Tenant
and shall be removed by Tenant (and all damage to the Building(s) caused by the
installation, operation and such removal repaired by Tenant) upon delivery of
the Premises to Landlord at the expiration or sooner termination of this Lease.
Landlord shall, at no cost to Landlord, use reasonable efforts to coordinate
its security system with Tenant Security Systems and to otherwise cooperate
with Tenant’s installation, alteration and operation of a security system for
its Premises. If Landlord incurs costs in connection with co-ordinating the
installation and operation of the Tenant Security systems with the systems and
operations of the Building, following Landlord’s notice of the costs that will
be incurred, Tenant will reimburse Landlord for such costs within thirty (30)
days following Landlord’s request for such reimbursement.

11.1.7      Common Areas.  Landlord shall operate, maintain, clean,
light, heat, ventilate and air-condition the Common Areas to a standard no less
than that which is comparable to the First Class Buildings and to the extent consistent
with the standards of First Class Buildings provide both Buildings with lobby
visitor reception services and after hours access monitoring.

11.1.8      Directory Board.  At the lobby directory of each Building, Tenant
shall, at no cost to Tenant, be furnished with up to two (2) designated names
(identifying Tenant, its Affiliates, sublessees and assignees) per one thousand
(1,000) rentable square feet of the space of the Initial Premises leased to
Tenant in such Building. Additional lines of directory space will be added at a
ratio and cost to Tenant to the extent consistent with the standards of First
Class Buildings.

11.1.9      Access to Special Tenant
Areas, Shafts, Risers and Conduits.

11.1.9.1   In addition to Tenant’s rights
(and Landlord’s obligations with respect to intra-Building risers pursuant to
the Work Letter), subject to Landlord’s prior review and approval of specific
plans describing Tenant’s intended use, provide Tenant with reasonable access
to and use (taking into account the size of the Premises and any other space
leased or subleased by Tenant in the Project (including without limitation any
space on the C-Level of the Project), the needs of a tenant of the size of
Tenant and the demands of modern telecommunications technology) of (a)
intra-Building telephone network cabling and equipment within the control of
Landlord, and (b) intra-Building risers and conduits to allow installation,
alteration, repair, maintenance and replacement of such telecommunications
cabling as Tenant may require to operate its telecommunications system
servicing the Premises and any other space leased or subleased by Tenant in the
Project (including without limitation any space on the C-Level of the Project);
provided such uses do not interfere with the Building systems or operations or
the other uses by other tenants of such areas. Notwithstanding the foregoing,
Landlord hereby acknowledges and agrees that pursuant to the Work Letter,
Landlord shall provide Tenant commercially reasonable room in the intra-Building
riser of the North Tower for the installation of Tenant’s cabling to
accommodate the commercially reasonable telecommunication needs of Tenant
(taking into account the size of the Premises and any other space leased or
subleased by Tenant in the Project (including without limitation any space on
the C-Level of the Project)).

11.1.9.2   Landlord shall provide Tenant
with (i) approximately 240 rentable square feet of space on the 14th Floor of
the North Tower for the purpose of installing and operating a chilled water
unit (“Chiller Unit”) and (ii) approximately 400 rentable square feet of space
on the D- Level of the Project for the purpose of installing and operating an
auxiliary electrical generator (the “Electrical Generator”) (together, the Chiller
Unit and the Electrical Generator will be referred to herein as “Utility Units”).
The spaces referred to above

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for the Utility Units
(the “Utility Spaces”) shall be considered part of the Premises, except that
(i) Tenant shall not be required to pay rent for such Utility Spaces; (ii) such
space shall be used only for purposes relating to the Utility Units; (iii) no
services shall be provided to the Utility Spaces and (iv) access to such spaces
shall be reasonably limited by Landlord. Within one (1) year following the
actual execution and delivery of this Lease, Tenant must request in writing
that Landlord deliver the Utility Spaces and Landlord shall deliver such
requested space(s) to Tenant within sixty (60) days of such notice. If Tenant
fails to deliver such request within such one (1) year period, Tenant’s rights
under this Section 11.1.9.2 shall terminate and be of no further force
or effect. Landlord shall deliver the Utility Spaces “As-Is” with all faults
and with no representations or warranties with respect to the quality or suitability
of such spaces for Tenant’s purposes. Tenant shall be solely responsible for
all costs and expenses and for the performance or any work required to comply
with Applicable Laws as may be applicable to Tenant’s installation of the
Utility Units and the use of the Utility Spaces. Landlord shall use
commercially reasonable efforts to provide Tenant with reasonable access to the
Building’s risers and other parts of the Building and to Building Systems for
the purpose of connecting cable, chilled water pipes and other connections (“Utility
Connections”) necessary to connect the Utility Units with the portions of the
Premises (and any other space leased or occupied by Tenant in the Project
(including, without limitation, any space on the C-Level of the Project)) to be
serviced by such Utility Units. No such Utility Connections shall interfere
with Landlord’s operations of the Building Systems. The installation and
removal of such Utility Connections shall be performed by Tenant at Tenant’s
sole cost and expense in a good and workmanlike manner using quality materials
and following Landlord’s reasonable approval of the plans and specifications
for such work. At the end of the Lease Term, Tenant shall surrender each
Utility Space to Landlord with the Utility Units and Utility Connections
removed and all affected areas of the Building and the Project restored to the
condition existing prior to the installation of the Utility Units. Tenant, at
its sole cost and expense, shall submeter the electricity, water and other
Utility Connections to the Utility Units and shall be solely responsible for
all such utility costs.

11.1.9.3   Tenant shall have access at all
times to and from the Premises and any space leased and/or occupied by Tenant
on the subterranean levels of the Project.

11.2         Restrictions on Use.  Tenant will not, without the prior written consent
of Landlord, which shall not be withheld, conditioned or delayed unless such
use shall cause a Design Problem, use any apparatus or device in the Premises
which will in any way increase the amount of electricity or water usually
furnished or supplied for use of the Premises as general office space, nor
connect any apparatus, machine or device with water pipes or electric current
(except through existing electrical outlets in the Premises), for the purpose
of using electric current or water.  If
any lights, machines or equipment (other than standard general office equipment
for comparable tenants) are used by Tenant in the Premises which materially
affect the temperature otherwise maintained by the air conditioning system, or
generate substantially more heat in the Premises than would be generated by the
building standard lights and usual office equipment, Landlord shall have the
right to install any machinery and equipment which Landlord reasonably deems
necessary to restore temperature balance, including but not limited to
modifications to the standard air conditioning equipment, and the cost thereof,
including the cost of installation and any additional cost of operation and
maintenance occasioned thereby, shall be paid by Tenant to Landlord within
thirty (30) days after demand therefor by Landlord.

If Tenant desires
service for the excess consumption needs of Tenant, following Tenant’s written
request of Landlord to provide the same and Tenant’s written approval of the
cost thereof, and if Landlord is able to provide such service with its
available facilities, Landlord shall provide such services and charge Tenant
the Actual Costs for such additional needs. When reasonably appropriate to do
so based upon a reasonable history of such excess electrical consumption by
Tenant, Landlord shall have the right to install, at Tenant’s expense, an
electric current meter in the Premises to measure the amount of electric
current consumed on the Premises. In those cases where Landlord requires Tenant
to pay for excess usage of electricity, water or other service or utility,
Landlord shall provide, upon Tenant’s request, evidence that such charges are made
in compliance with the terms of this Lease. Provided such units do not pose a
Design Problem, Landlord will reasonably approve Tenant’s request to install
supplemental air-conditioning units (“Supplemental AC Units”) provided all work
is performed (including the installation of 220 volt electrical power and
installation of separate meters for the electricity used by such Supplemental
AC Units) at Tenant’s sole cost and expense, complies with the other terms
applicable to Alterations to the Premises and Tenant reimburses Landlord for
all electrical charges for operating such Supplemental AC Units.

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11.3         Other Terms Applicable
to Extra Utilities and Services.

11.3.1      Average Consumption
Limits.  Notwithstanding any
provision of this Lease to the contrary, Tenant shall not be required to pay
any charge or fee for excessive use of utilities (other than After Hours HVAC
and excess electricity, the costs of which are specifically set forth in Sections
11.3.2 and 11.1.2, respectively) if Tenant’s average consumption per
square foot of rentable area for the entire Premises, measured over a
reasonably representative time period, of the utility in question (e.g., water)
does not materially exceed the average consumption by office tenants in First
Class Buildings with normal business operations (the “Average Consumption”) per
rentable square foot of such utility service measured over the same period of
time.  Any such charges for excess
utilities or services which Tenant is obligated to pay shall be deemed to be
additional rent hereunder.

11.3.2      After Hours HVAC.  Notwithstanding the foregoing, Landlord agrees
to make available, subject to interruption for repairs and restorations, after-hours
HVAC service to the Premises (at the prevailing rates for the Building, from
time to time subject to the provisions below) during the Term of this Lease.
Tenant acknowledges that Landlord currently charges a fee per hour for
after-hours heat or air-conditioning (the “Hourly Charge”) of two hundred Forty-Three
and no/100 dollars ($243.00) per hour and that such service is provided for a
minimum of two (2) hours. Tenant further acknowledges that such Hourly Charge
shall be applicable to any after-hours heat or air-conditioning which Tenant
requests and obtains from each Building’s heating and air-conditioning system.
The Hourly Charge shall not be increased by Landlord except in the event that
Landlord’s Actual Cost to provide such after-hours HVAC increases above the
greater of such amount or Landlord’s Actual Cost to provide the same as of the
date hereof (whichever is greater), in which event Landlord may increase the
Hourly Charge by such actual incremental increase in such Actual Cost. In the
event Tenant and/or other tenants request from Landlord use of after-hours HVAC
serving the same zone for the same time period, the Tenant’s charge hereunder
shall be reduced to be its pro-rata share (based upon rentable square feet) of
the HVAC service provided to such zone. During the initial Term of this Lease
only and not part of a renewal period, the first two hundred forty (240) hours
of after-hours HVAC service requested by Tenant and provided by Landlord during
any calendar year shall be at no charge.

11.3.3      After-Hours Uses of Other
Services or Utilities.  Subject to the
provisions of this Article 11, if Tenant desires to have any services or
utilities supplied to the Premises at times other than those which Landlord is obligated
to provide such service of utilities, and if Landlord is able to provide the
same and Tenant provides adequate notice thereof to Landlord, Tenant shall pay
Landlord such charge as Landlord shall establish from time to time for providing
such services or utilities.

11.4         Interruption Of Use.  Except as provided in Sections 14.4
and 30.16, below, Tenant agrees that Landlord shall not be liable for
damages, by abatement of Rent or otherwise, for failure to furnish or delay in
furnishing any service (including telephone and telecommunication services), or
for any diminution in the quality or quantity thereof, when such failure or
delay or diminution is occasioned, in whole or in part, by repairs,
replacements, or improvements, by any strike, lockout or other labor trouble,
by inability to secure electricity, gas, water, or other fuel at each Building
after reasonable effort to do so, by any accident or casualty whatsoever, by
act or default of Tenant or other parties, or by any other cause beyond
Landlord’s reasonable control; and such failures or delays or diminution shall
never be deemed to constitute an eviction or disturbance of Tenant’s use and
possession of the Premises or relieve Tenant from paying Rent or performing any
of its obligations under this Lease, subject to the provisions of Sections
14.4 and 30.16.  Furthermore,
Landlord shall not be liable under any circumstances for a loss of, or injury
to, property or for injury to, or interference with, Tenant’s business,
including, without limitation, loss of profits, however occurring, through or
in connection with or incidental to any such failure to furnish any services or
utilities.

12.           Entry by Landlord.

12.1         Entry by Landlord.  Landlord shall at all reasonable times upon reasonable
advance notice (except in the event of an emergency) have the right to enter
the Premises in order to: inspect the Premises; post notices of non-responsibility;
show the Premises to prospective purchasers or lenders or, during the last
twelve (12) months of the Lease Term, to prospective tenants; perform its
obligations and exercise its rights hereunder; and subject to the

 27
 

provisions of this Lease,
make repairs, improvements, alterations or additions to the Buildings or any
portion thereof as Landlord deems necessary or desirable and to do all things
necessary in connection therewith. 
Landlord shall retain (or be given by Tenant) keys to unlock all of the
doors to or within the Premises, excluding doors to Tenant’s vaults and files
and except as provided in Section 12.3 below.  Landlord shall have the right to use any and
all means necessary to obtain entry to the Premises in an emergency.  Landlord may make any such entries without
abatement of rent and may take such steps as required to accomplish the stated
purposes (subject to the provisions of Sections 12.2 and 30.16
below).  Subject to the provisions of
this Lease, Landlord’s entry to the Premises shall not, under any
circumstances, be deemed to be a forcible or unlawful entry into, or a detainer
of, the Premises, or an eviction of Tenant from the Premises or any portion
thereof.

12.2         Landlord Entry
Restrictions.  Notwithstanding any
provision of this Lease to the contrary, with respect to any entry by Landlord
or any Landlord employee, agent or contractor (a “Landlord Party”):  (i) if such entry is for the purpose of
performing any construction, repair or maintenance work, which will materially
affect the operation of Tenant’s business with respect to any significant
portion of the Premises, Landlord shall, if Tenant so requests, schedule such
work during hours other than Normal Business Hours and otherwise at such times
as shall minimize the impact on Tenant’s business; provided, however, that the
provisions of this Section 12.2 shall not apply in the case of any entry
in an emergency, or at the request of Tenant; (ii) Landlord shall take all
measures reasonably necessary to avoid any damage to the Premises, the leasehold
improvement therein, any Alterations and Tenant’s Property; provided, however,
in any emergency, consideration of those “measures reasonably necessary” shall
take into account the nature of the emergency; and (iii) Landlord shall
promptly fully restore, repair and/or replace any damage to the leasehold
improvements, any Alteration, the Premises and Tenant’s Property resulting from
such entry.

12.3         Secure Areas.  Tenant may designate up to two (2) areas of
the Premises totaling no more than five hundred (500) rentable square feet of
space as “Secure Areas” should Tenant require such areas for the purpose of
securing certain valuable property or confidential information.  Notwithstanding any provision of this Lease
to the contrary, Landlord may not enter such Secured Areas except in the case
of emergency or in the event of a Landlord inspection, in which latter case
Landlord shall provide Tenant with three (3) days’ prior written notice of the
specific date and time of such Landlord inspection. Tenant shall provide
Landlord with a key for such Secure Areas (to be held pursuant to a security
procedure reasonably satisfactory to Tenant) for Landlord’s use for entry
purposes in the event of an emergency.

13.           Insurance.

13.1         All-Risk Insurance.  At all times during the Lease Term, Tenant,
at its expense, shall maintain in effect policies of “All Risk” (Special Causes
of Loss) (without coverage for earthquake damage except for sprinkler leakage) insurance
covering:  (a) for their full replacement
cost new (subject to reasonable deductibles), the tenant improvements,
including Alterations, wholly contained within the Premises which are not part
of (i) the Base Building, Building Systems, Shell and Core (defined in the Work
Letter), or (ii) Landlord’s Work (defined in the Work Letter) (such
improvements and Alterations being referred to herein as the “Tenant
Responsible Improvements”); and (b) for their full replacement cost (subject to
reasonable deductibles) all of Tenant’s Property and other tangible personalty
from time to time in, on or about the Premises (without deduction for
depreciation) (subject to reasonable deductibles) from time to time during the
Term of this Lease.  Such policies shall
provide for protection against any perils normally included within the classification
of “All Risk”, and shall contain endorsements, covering: demolition and
increased cost of construction; water damage, vandalism and malicious mischief,
but shall not be required to cover earthquake damage.  The proceeds of such insurance (for tenant
improvements) shall be used for the repair or replacement of the property so
insured, except that upon termination of this Lease following a casualty as set
forth herein, the proceeds of such insurance shall be paid as follows:  first to Landlord in an amount equal to forty
dollars ($40.00) per rentable square foot of the North Tower Premises and Forty-Five
dollars ($45.00) per rentable square foot of the South Tower Premises (and in
the case of a partial termination, such amount shall be based on the square
footage of the applicable area of Premises terminated); and second, to the
extent there are remaining proceeds, the remaining proceeds to Tenant.

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13.2         Public Liability And
Property Damage Insurance.  At all
times during the Lease Term, Tenant, at its expense, shall maintain Commercial
General Liability Insurance (including property damage) with respect to the
ownership, maintenance and condition of the Premises and the business conducted
therein, which shall be on an occurrence form. 
Such insurance shall at all times have limits of not less than five
million dollars ($5,000,000) combined single limit per occurrence for bodily
injury, personal injury and property damage liability. At Landlord’s request,
and only following the first five (5) years of the Lease Term, these limits
shall be increased from time to time during the Lease Term (but not more often
than once every two (2) years) to such higher limits as Landlord or its
insurance consultant believe are necessary to protect Landlord, provided such
increased amounts shall be in no event greater than the amounts typically
required by landlords from comparable tenants of First Class Buildings.  The amount of such insurance shall not limit
Tenant’s liability nor relieve Tenant of any obligation hereunder.  Each policy shall contain cross liability
endorsements, if applicable.

13.3         Policy Requirements.

13.3.1      General Requirements.  All insurance required to be carried hereunder
shall be issued by responsible insurance companies with a rating of not less
than A-VII in Best’s Insurance Guide, or comparable company Landlord approves.  Copies of all certificates with respect to
Tenant’s insurance therefor shall be delivered to Landlord prior to Tenant’s
occupancy of the Premises.  Each policy
shall provide that the insurer shall not cancel such policy unless it has
provided thirty (30) days’ prior written notice to Landlord.  Tenant shall furnish Landlord with renewals
or “binders” of each policy, together with evidence of payment of the premium
therefor, at least thirty (30) days prior to expiration.  Tenant shall be permitted to use such blanket
policies of insurance and combinations of primary and excess (umbrella) policies
as is consistent with its normal practice, so long as the amount of insurance
and the scope and type of coverage shall conform to the requirements contained
in this Lease.

13.3.2      Additional Insureds.  Landlord, any other party reasonably specified
by Landlord and, if required, Landlord’s Mortgagee shall be named as additional
insureds as to Tenant’s Commercial General Liability policy, and if requested
by Landlord, they also shall be named as loss payees with respect to the
property insurance with respect to the tenant improvements contained within the
Premises (subject to the rights of Tenant hereunder).

13.3.3      Waivers Of Subrogation.
 Each policy of All Risk Insurance which
either party obtains hereunder shall include a clause or endorsement denying
the insurer any right of subrogation against the other party hereto. Landlord
and Tenant each waive any rights of recovery against the other for injury or
loss due to hazards covered by its own All-Risk insurance, to the extent of the
injury or loss covered thereby.

13.4         Tenant’s Failure To
Deliver Policies.  If Tenant fails to
deliver insurance certificates and evidence of payment therefor within the time
required pursuant to Section 13.3.1, and such failure continues for
three (3) business days following Landlord’s delivery to Tenant of written notice
of such failure, Landlord may, but shall not be obligated to, obtain the
required insurance, and the cost thereof shall be payable by Tenant to Landlord
within thirty (30) days following Landlord’s written demand.  Nothing in this Section 13.4 shall be deemed
to be a waiver of any rights or remedies available to Landlord under this Lease
or at law or in equity if Tenant fails to obtain and deliver the required insurance
policies and evidence of payment.

13.5         Landlord’s Property
Insurance.  Landlord shall insure the
Building during the Lease Term against loss or damage due to fire and other
casualties covered within the classification of fire and extended coverage (and
a rental loss endorsement), vandalism coverage and malicious mischief,
sprinkler leakage, water damage and special extended coverage on the Building
for its full replacement.  Such coverage
shall be in such amounts, from such companies, and on such terms and
conditions, as is customarily carried by reasonably prudent landlords of First
Class Buildings.  Additionally, at the
option of Landlord, but subject to the provisions of Section 7.1.4,
above, such insurance coverage may include the risks of earthquakes and/or
flood damage and additional hazards, a related rental loss endorsement and one
or more loss payee endorsements in favor of the holders of any mortgages or
deeds of trust encumbering the interest of Landlord in the Buildings or the
ground or underlying lessors of the Buildings, or any portion thereof.  Upon inquiry by Tenant, from time to time, Landlord
shall inform Tenant of such coverage carried by Landlord.  Tenant shall neither knowingly use the
Premises nor knowingly

 29
 

permit the Premises to be
used or acts to be done therein in a manner which will (i) increase the premium
of any insurance described in this Section 13.5 unless Tenant pays for
the increase in such premium; or (ii) cause a cancellation of any such
insurance policies. If Tenant’s conduct or use of the Premises causes any
increase in the premium for such insurance policies then Tenant shall reimburse
Landlord for any such increase. Tenant and Landlord shall comply with all
rules, orders, regulations or requirements of the American Insurance Association
(formerly the National Board of Fire Underwriters) and with any similar body.

14.           Damage Or
Destruction; Eminent Domain.

14.1         Repair of Landlord’s
Restoration Areas By Landlord. 
Provided this Lease is not subject to (or is no longer subject to)
termination by Landlord or Tenant as provided below (other than the rights of
Tenant under the provisions of Section 14.6 (excluding the first
sentence thereof), following discovery of any damage or destruction to the
Landlord Restoration Areas, Landlord shall, at Landlord’s sole cost and
expense, in a commercially reasonable manner (and with reasonable promptness),
repair, restore and rebuild all such Landlord Restoration Areas (during which
time this Lease shall remain in full force and effect) except for modifications
required by zoning and building codes and other laws (“Law Modifications”).
Landlord Restoration Areas as used herein shall mean any portion of the
Project, including the Base Building and Building Systems of any floor on which
the Premises are located, the damage or destruction of which materially and
adversely affects Tenant’s access to, or use, enjoyment or occupancy of the
Premises (or the parking facilities servicing the Premises).

14.2         Repair of the Tenant
Responsible Improvements by Tenant. 
Provided this Lease is not subject to (or is no longer subject to )
termination by Landlord or Tenant as provided below, following discovery of any
damage to the Tenant Responsible Improvements, Tenant shall, at Tenant’s sole
cost and expense, promptly commence to repair, restore and rebuild such Tenant Responsible
Improvements (or their reasonable equivalent) to the same condition existing
immediately prior to the damage (which reflects reasonable wear and tear
existing immediately prior to the damage), or to any other configuration or level
of improvement consistent with general office use in First Class Buildings, and
thereafter shall diligently pursue such repair, restoration and rebuilding to
completion, during which time this Lease shall remain in full force and effect
subject to Section 14.4.

14.3         Damage Estimate;
Cooperation; Insurance Proceeds.

(a)  Within sixty (60) days after discovery of any
occurrence of damage or destruction affecting the Landlord Restoration Areas,
Landlord shall provide Tenant with written notice (“Landlord’s Estimate Notice”)
of whether the Landlord Restoration Areas will be replaced, restored and
rebuilt pursuant to the terms hereof and of Landlord’s best good faith estimate
of the time to do so. At any time, from time to time, after the date occurring
twenty (20) days after the date of the damage or destruction, but no more often
than once every ninety (90) days, Tenant may request that Landlord provide
Tenant with a certificate from a reputable architect or a reputable contractor
setting forth the architect or contractor’s reasonable opinion of the date of
completion of the required repairs of the Landlord Restoration Areas and
Landlord shall respond to such request, in writing, within fifteen (15) days.

(b)  In each case where Landlord and Tenant will
be responsible for prosecuting restoration work pursuant to this Article 14,
each party will exercise reasonable efforts to cooperate with the efforts of
the other party to prosecute its work on a timely and cost-efficient basis.

14.4         Rent Abatement.  If all or part of the Premises are rendered completely
or partially untenantable on account of fire or other casualty to the Premises
and/or Base Building and/or the Building System or the Common Areas, Monthly
Rent, Tenant’s Share of Excess Direct Expenses, parking charges and all other
forms of additional rent (collectively, “Tenant’s Monetary Obligations”) shall
be abated in the proportion that the rentable area of the untenantable portion
of the Premises bears to the total rentable area of the Premises.  Such abatement shall commence on the date of
the damage or destruction and shall continue until the Premises and all
relevant portions of the Common Areas have been substantially repaired and
Tenant has been granted sufficient time to reinstall the Tenant Improvements,
its furniture, fixtures and equipment and move into the Premises, which period
of time shall be extended for Force Majeure Events and delays caused by the
Landlord.  However, if Tenant reoccupies
any

 30
 

portion of damaged
portion of the Premises prior to the date that the Premises are substantially
repaired, the Rent allocable to the reoccupied portion shall be payable by
Tenant from the date of such occupancy in the proportion that the rentable area
of the reoccupied portion of the Premises bears to the total rentable area of
the Premises, provided, further, if the Premises (or access thereto) is damaged
such that the remaining portion thereof is not sufficient to allow Tenant to
conduct its business operations from such remaining portion and Tenant does not
conduct its business operations therefrom, Landlord shall allow Tenant a total
abatement of Rent during the time and to the extent the Premises are unfit for
occupancy for the purposes permitted under this Lease, and not occupied by
Tenant as a result of the subject damage. 
If Tenant’s right to abate under this Section 14.4 occurs during
a free rent period or during another period during which Tenant’s Monetary
Obligations hereunder are abated or subject to another rent credit provision
under either this Lease or the Work Letter (“Overlap Period”), Tenant shall be
entitled to an additional free rent credit (applicable to the rent next due and
payable) equal to the free rent to which Tenant was otherwise entitled during
the Overlap Period but which was not used by virtue of application of this Section
14.4.

14.5         Landlord’s Election to
Terminate.

(a)
Notwithstanding any provision of this Lease to the contrary, in the event that
casualty damage to a substantial portion of the Building and the Premises
(whether or not such damage is an insured loss) occurs, Landlord may terminate
this Lease upon written notice to Tenant if: 
(i) either (x) repairs to the Premises (including all tenant
improvements contained therein) cannot reasonably be completed within three
hundred sixty-five (365) days of the date of discovery of the damage (when such
repairs are made without the payment of overtime or other premiums); or (y) the
damage to the Landlord Restoration Areas arising as a result of such casualty
is not fully covered, except for deductible amounts, by insurance policies held
by Landlord (and is not required to be insured by Landlord pursuant to Article
13) and the amount of such damage not covered by (or required to be covered
by) insurance, including deductible amounts, is in excess of ten million dollars
($10,000,000); and (ii) either (x) in the event the Premises are damaged,
Landlord terminates all leases of tenants of the Building sustaining damage, if
any, comparable to that sustained by Tenant, which Landlord has a right to
terminate; or (y) in the event the Premises are not materially damaged,
Landlord terminates all leases of tenants in the Building and Landlord elects
to demolish the Building or not to commence repair or restoration to the
Building within eighteen (18) months from the date of the damage is discovered.

(b) If Landlord
elects to terminate this Lease pursuant to this Section 14.5, its notice of
termination shall be given within sixty (60) days after discovery of the
damage, destruction or events in question and this Lease shall terminate on the
date specified in such notice; provided, however, such termination date shall
be no less than ninety (90) days following Landlord’s notice of termination.

14.6         Tenant’s Right to
Terminate this Lease.

(a)
Notwithstanding the foregoing, in the event that Landlord does not elect to
terminate this Lease pursuant to Landlord’s termination right as provided
above, and the repairs of the Landlord Restoration Areas and the Tenant Responsible
Improvements cannot be reasonably completed within three hundred sixty-five
(365) days after being commenced (which three hundred sixty-five [365] day
period shall not be subject to extension as a result of any Force Majeure
Event), Tenant may elect, no earlier than sixty (60) days after the discovery
of the damage and not later than sixty (60) days following Tenant’s First
Estimate Notice, to terminate this Lease by written notice to Landlord effective
as of any date within sixty (60) days thereafter. Furthermore, if Landlord
fails to complete the repairs of the Landlord Restoration Areas within three
hundred sixty-five (365) days following the damage or destruction, Tenant shall
have the right to terminate this Lease within five (5) business days of the end
of such period and thereafter during the first five (5) business days of each
calendar month following the end of such period until such time as the repairs
are complete, by notice to Landlord (the “Damage Termination Notice”), effective
as of a date set forth in the Damage Termination Notice (the “Damage Termination
Date”), which Damage Termination Date shall not be less than five (5) business
days following the end of such period or each such month, as the case may be.
Notwithstanding the foregoing, if Tenant delivers a Damage Termination Notice
to Landlord, then Landlord shall have the right to suspend the occurrence of
the Damage Termination Date for a period ending thirty (30) days after the
Damage Termination Date set forth in the Damage Termination Notice

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by delivering to Tenant,
within five (5) business days of Landlord’s receipt of the Damage Termination
Notice, a certificate of Landlord’s contractor responsible for the repair of
the damage certifying that it is such contractor’s good faith judgment that the
repairs shall be substantially completed within thirty (30) days after the
Damage Termination Date. If repairs shall be substantially completed prior to
the expiration of such thirty (30) day period, then the Damage Termination
Notice shall be of no force or effect, but if the repairs shall not be substantially
completed within such thirty (30) day period, then this Lease shall terminate
upon the expiration of such thirty (30) day period.

(b)
Notwithstanding the foregoing, if Landlord shall be obligated to repair or
restore the Premises under the provisions of this Article 14 and shall not
commence, in a substantial and meaningful way, the repair or restoration of the
Premises within ninety (90) days after such obligation shall accrue, Tenant may,
at any time prior to the commencement of such repair or restoration, give written
notice to Landlord and to any lenders of which Tenant has actual notice of
Tenant’s election to terminate this Lease on a date not less than sixty (60) days
following the giving of such notice.  If
Tenant gives such notice to Landlord and such lenders and such repair or
restoration is not commenced within thirty (30) days after receipt of such
notice, subject to the remaining rights of termination set forth in this Article
14, this Lease shall terminate as of the date specified in said
notice.  If Landlord or a lender
commences the repair or restoration of the Premises within thirty (30) days
after receipt of such notice, this Lease shall continue in full force and
effect.  “Commence” as used in this Article
14 shall mean either the unconditional authorization of the full preparation
of the required plans (and engagement of a qualified architect), or the
beginning of the actual work on the Premises, whichever first occurs; provided
that in the case of preparation of plans, such plans are diligently prepared
and work based thereon promptly commenced.

14.7         Damage Near the End of
Term.  In the event that the Premises
or the Building is destroyed or damaged rendering the Premises untenantable and
the time necessary to repair or restore the Premises would exceed ninety (90)
days (when such repairs are made without payment of overtime or other premiums)
during the last twelve (12) months of the Lease Term and Tenant did not previously
exercised its option to extend the Lease Term, then notwithstanding anything
contained in this Article 14, Landlord or Tenant shall have the option to
terminate this Lease by giving written notice to the other party of the exercise
of such option within sixty (60) days after such damage or destruction, in
which event this Lease shall cease and terminate as of the date of such notice,
Tenant shall pay the Monthly Rent and additional rent, properly apportioned up
to such date of damage (subject to abatement under Section 14.4), and
both parties hereto shall thereafter be freed and discharged of all further obligations
hereunder, except as provided for in provisions of this Lease which by their
terms survive the expiration or earlier termination of the Lease Term.

14.8         Termination: Advance
Payments.  Upon termination of this
Lease pursuant to this Article 14, an equitable adjustment shall be made
concerning all advance rent and any advance payments, if any, previously made
by Tenant to Landlord.  Landlord shall,
in addition, return to Tenant so much of Tenant’s security deposit (if any) as
has not theretofore been applied by Landlord in accordance with the terms and
provisions of this Lease.

14.9         Application to
Separate Buildings.  In recognition
of the fact that the Premises hereunder are located at two separate buildings
at the Project and damage of destruction may occur to one such building and not
the other (or to the portion of the Premises located in one building and not
the other) the terms of this Article 14 shall apply separately to the
North Tower Premises (and to the North Tower as the Building for such Premises)
and to the South Tower Premises (and to the South Tower as the Building for
such Premises) as if there were to separate leases one covering the North Tower
Premises and one covering the South Tower Premises; provided, however, that if
under this Article 14 Tenant has the right to exercise a right of
termination with respect to the North Tower Premises (or if Landlord shall
elect to terminate this Lease as to the North Tower Premises), it shall also
have the right to terminate this Lease as to the South Tower Premises.

14.10       Eminent Domain.  Landlord may terminate this Lease upon one
hundred eighty (180) days written notice to Tenant if the whole or any part of
the Premises, or a part of the Building reasonably deemed necessary by Landlord
for the operation of the Building (and Landlord in fact stops operation of the Building),
is condemned, taken or appropriated by any public or quasi-public authority
under the power of eminent domain, police power or otherwise

 32
 

(or in the event of a
sale in lieu thereof) and as a result thereof Landlord terminates the leases of
all other tenants in the Building similarly affected by such taking. Tenant
shall have the right to terminate this Lease upon written notice to Landlord if
twenty-five percent (25%) or more of the Premises or if so much of the Building
that Tenant’s ability to access the Premises is condemned, taken or
appropriated by any public or quasi-public authority under the power of eminent
domain, police power or otherwise (or in the event of a sale in lieu thereof).
Whether or not this Lease is so terminated, Landlord shall be entitled to any
and all income, rent, award, or interest thereon which may be paid or made in
connection with the taking or appropriation, provided, however, that Tenant
shall be entitled to any award for loss of or damage to Tenant’s Property or
for damages for cessation or interruption of Tenant’s business, loss of goodwill,
relocation and moving expenses and fifty percent (50%) of the “bonus value” of
Tenant’s leasehold interest in this Lease actually awarded by the condemning
authority. If Landlord elects to terminate this Lease, its notice of termination
shall be given within three hundred sixty-five (365) days after the taking or appropriation.
If such notice is not given or if Landlord notifies Tenant of Landlord’s
election not to terminate (and Tenant does not exercise any of its rights of
termination under this Section 14.10), this Lease shall continue in full
force and effect, except that the Tenant’s Monetary Obligations shall be
reduced in the proportion that the rentable floor area of the Premises which is
taken bears to the total Rentable Area of the Premises. Nothing contained in
this Section shall prevent Tenant from bringing a separate action or proceeding
for compensation for any of Tenant’s Property taken, Tenant’s moving expenses
or any other compensation that Tenant may be able to receive from the
condemning authority as part of a separate action that does not affect Landlord’s
compensation.

14.11       Waiver.  The provisions of this Lease, including this Article
14, constitute an express agreement between Landlord and Tenant with
respect to any and all damage, destruction or condemnation of all or any part
of the Premises and the Building and any statute or regulation of the State of
California, including, without limitation, Sections 1931(2) and 1933(4) of the
California Civil Code, and Section 1265.130 of the California Code of Civil
Procedure, with respect to any rights or obligations concerning damage or
destruction or condemnation in the absence of an express agreement between the
parties, and any other similar Law now or hereafter in effect, shall have no
application to this Lease.

15.           Assignment And
Subletting.

15.1         Landlord’s Consent
Required.  Subject to the provisions
of this Article 15, Tenant shall not voluntarily, involuntarily or by
operation of any Laws sell, convey, mortgage, assign, sublet or otherwise
transfer or encumber all or any part of Tenant’s interest in this Lease or the
Premises (each such action by Tenant to be known as a “Transfer”) without
Landlord’s prior written consent in each instance, and any attempt to do so
without this consent shall be null and void.

15.2         Notice.  If Tenant desires to make a Transfer, Tenant
shall notify Landlord in writing.  This
notice shall be accompanied by:  (a) a
statement setting forth the name and business of the proposed transferee of the
Transfer (the “Transferee”); (b) a copy of the proposed documents, in substantially
complete form (whether or not executed) evidencing the material terms of the proposed
Transfer including the financial terms of the Transfer (including, without
limitation, the term, the rent and any security deposit, “key money”); and (c)
financial statements (which shall, if the same shall always exist, be certified
by an independent certified public accountant) and other information reasonably
requested by Landlord relating to the business of the Transferee or the use of
the Premises proposed by the Transferee. 
In the event that Tenant shall have submitted unexecuted transfer
documents, Tenant shall not, without resubmitting the same for Landlord’s
consent, materially change the terms of the proposed Transfer.

15.3         Consent By Landlord.  Landlord shall not unreasonably withhold or condition
its consent to any Transfer proposed by Tenant. 
Landlord and Tenant agree that the withholding or conditioning of
Landlord’s consent shall be deemed reasonable if one or more of the following
conditions are applicable:

(a) The primary
use of the Premises by the proposed Transferee is not a Permitted Use, or would
otherwise reasonably offend the majority of landlords of First Class Buildings.

 33

(b)  In the case of an assignment of the entire
Lease or a sublease of all or substantially all of the Premises for the
remainder of the Lease Term, the proposed Transferee does not have sufficient
financial capabilities to perform all of its obligations as such obligations
become due.

(c)  The proposed Transferee is an occupant of any
part of the Project or has negotiated with Landlord within the preceding one
hundred fifty (150) days for space in the Project (as evidenced by the exchange
of written proposals for a proposed transaction to lease space in the Project),
and Landlord has direct space in the Project available for Lease
substantially consistent with the requirements of the Transferee with respect
to Premises size, floor height, location and delivery condition (such as shell
vs. improved space condition).

(d)  The proposed Transferee is (i) an
instrumentality which is that of a foreign country, (ii) which is of a
character or reputation, is engaged in a business, or is of, or is associated
with, a political orientation or faction, which would reasonably offend most
landlords of the First Class Buildings, (iii) a governmental entity or other
entity which is capable of exercising the power of eminent domain or
condemnation, or (iv) which would significantly increase the human traffic in
the Premises or Building above that of comparable tenants of the Building (or
Tenant’s human traffic, whichever is greater). Notwithstanding the foregoing,
if Landlord leases space in the Building to a tenant (an “Accepted Tenant”)
that has one of the attributes described in (i) through (iv), above, then so
long as such Accepted Tenant leases space in the Building, Tenant may sublease
space to a party that has the same attributes as the Accepted Tenant that
Landlord has leased to the Accepted Tenant (and provided that such proposed
subtenant is otherwise qualified hereunder).

(e)  All of the other terms of this Section 15.3
are complied with.

The conditions
described above are not exclusive and shall not limit or prevent Landlord from
considering additional factors in determining if it should reasonably withhold
its consent.

15.4  Corporate And Partnership Transactions.  If Tenant is a corporation which is not
publicly held, a dissolution of the corporation or a transfer of a majority of
the voting stock of Tenant shall be deemed to be an assignment of this Lease
subject to the provisions of this section. 
However, these provisions shall not apply to transactions with a
corporation into or with which Tenant is merged, reorganized or consolidated or
to which substantially all of Tenant’s assets are transferred or which
controls, is controlled by, or is under common control with, Tenant, if the
principal purpose of the merger or transfer is not the assignment of this Lease
and Tenant’s successor assumes all the obligations of Tenant under this
Lease.  If Tenant is a partnership which
is not publicly held, a dissolution of the partnership (including a “technical”
dissolution) or the withdrawal or change, voluntarily, involuntarily or by
operation of law, of fifty percent (50%) or more of the partners, or transfer
of fifty percent (50%) or more of the partnership interests within a twelve
(12) month period shall be deemed an assignment of this Lease subject to the
provisions of this Article 15, regardless of whether the transfer is
made by one or more transactions, or whether one or more persons hold the
controlling interest prior to or after the transfer.  Notwithstanding any provision of this Lease
to the contrary, a fifty percent (50%) (or any) transfer of shares or interests
in either DMJM or AeCom shall not be deemed a Transfer hereunder provided such
transfer is not a subterfuge to avoid the terms of this Article 15.

15.5  No Release Of Tenant.  Subject to the provisions of Section 15.9,
notwithstanding the granting of Landlord’s consent, no sale, conveyance, mortgage,
pledge, subletting, assignment or other transfer or encumbrance of this Lease
or the Premises shall release or alter Tenant’s liability to pay rent and
perform all of its other obligations hereunder. 
The acceptance of rent by Landlord from any person other than Tenant
shall not be a waiver by Landlord of any provision hereof.  Consent to one assignment or subletting shall
not be deemed to be consent to any subsequent assignment or subletting.  After any assignment, sublease or other
transfer or encumbrance, Landlord may consent to subsequent assignments,
subleases, transfers or encumbrances, or amendments to this Lease, without
notifying Tenant or any other person, without obtaining consent thereto, and
without relieving Tenant of liability under this Lease.

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15.6  Additional
Charges.  If Landlord consents to an
assignment or sublease, as a condition thereto which the parties hereby agree
is reasonable, Tenant shall pay to Landlord fifty percent (50%) of any “Transfer
Premium”, as that term is defined in this Section 15.6, received by
Tenant from such assignee or subtenant.  “Transfer
Premium” shall mean all rent, additional rent or other consideration
(collectively, “Consideration”) payable by such assignee or subtenant in excess
of the Monthly Rent and Direct Expenses payable by Tenant under this Lease, on
a per rentable square foot basis if less than all of the Premises is
transferred, after deducting all expenses incurred by Tenant for (a) any
changes, alterations and improvements to the Premises in connection with the assignment
or sublease, (b) any brokerage commissions in connection with the assignment or
sublease, (c) any costs to buy-out or takeover the previous lease of an
assignee or subtenant, (d) all allowances and monetary concessions, (e) all
attorneys’ fees, architectural and design fees, marketing fees and advertising
costs and consultants’ fees incurred by Tenant in connection with the Transfer,
(f) the amount of any Monthly Rent, Direct Expenses and other additional rent
paid by Tenant to Landlord with respect to the Premises subject to the Transfer
during the period (the “Vacancy/Marketing Period”) commencing on the later
of:  (i) the date Tenant contracts with a
reputable broker to market the such portion of the Premises and notifies the
Landlord in writing of such contract (or commences active negotiations with a
prospective Transferee), and (ii) the date Tenant vacates the such portion of
the Premises, until the commencement of the payment of periodic rent under the
Transfer.  The determination of the
amount of Landlord’s applicable share of the Transfer Premium shall be made on
a monthly basis as rent or other consideration is received by Tenant under the
Transfer.  For purposes of calculating
the Transfer Premium on a monthly basis, Tenant’s Transfer Costs shall be
deemed to be expended by Tenant in equal monthly amounts over the entire term
of the Transfer (provided, however, at the election of Tenant given within
thirty (30) business days following the giving of Landlord’s consent to such
Consent Transfer, Tenant may amortize all or any portion of such Transfer Costs
over a shorter period or may elect to allocate such Transfer Costs to the
earliest portion of the term of such Transfer until such Transfer Costs are
exhausted).  “Consideration” shall also
include, but not be limited to, key money and bonus money paid by an assignee
or subtenant to Tenant in connection with such assignment or sublease, and any
payment in excess of fair market value for assets, fixtures, inventory, equipment,
or furniture transferred by Tenant to an assignee or subtenant.

15.7  Additional
Terms.  Tenant shall pay the
reasonable attorneys’ fees and other costs and expenses of Landlord in
connection with any request for Landlord’s consent to any sale, conveyance,
mortgage, pledge, assignment, sublease or other transfer or encumbrance, which
cost and expenses shall not exceed one thousand five hundred dollars ($1,500)
in the aggregate for each Transfer. If this Lease is terminated or Landlord
re-enters or repossesses the Premises, Landlord may, at its option, take over
all of Tenant’s right, title and interest as sublessor and, at Landlord’s
option (but subject to any right of termination the subtenant may have in the
sublease), the subtenant shall attorn to Landlord, but Landlord shall not be:
(a) liable for any previous act or omission of Tenant under the sublease, (b)
subject to any existing defense or offset against Tenant, or (c) bound by any
previous modification of the sublease made without Landlord’s prior written
consent or by any prepayment of more than one month’s rent. Any purported
sublease or assignment to which Landlord’s consent is required hereunder shall
be ineffective until Landlord gives its written consent thereto. This article
is binding on and shall apply to any purchaser, mortgagee, pledgee, assignee,
subtenant or other transferee or encumbrancer, at every level.

15.8  Transfers
To Affiliates.  The term “Affiliate
Transferee” (or “Affiliate”) shall mean any entity which:  (i) is controlled by, controls, or is under
common control with, Tenant or which merges with, is acquired by, or acquires
all of Tenant’s assets or stock (or other interests) and (ii) to which Tenant
assigns this Lease or makes a sublease of the Premises.  “Control”, as used in this Section 15.8,
shall mean the possession, direct or indirect, of the power to control the
direction of the management and policies of a person or entity, whether through
the ownership of voting securities, by contract or otherwise.  Notwithstanding anything to the contrary
contained in this Article 15, an assignment or sublease of the Premises
to an Affiliate Transferee shall not require Landlord’s prior consent under
this Article 15, nor shall it be subject to Tenant’s obligation to pay a
Transfer Premium as provided above (or comply with the notice requirements of Section
15.2), provided that:  (a) Tenant gives
Landlord prior written of any such assignment or sublease and promptly supplies
Landlord with any documents or information reasonably required by Landlord
regarding such assignment or sublease or such Affiliate Transferee; (b) the
Affiliate Transferee would not be unacceptable due to the reasons set

 35
 

forth in Section
15.3(d); (c) such assignment or sublease is not a subterfuge by Tenant to
avoid Tenant’s obligation to obtain consent or pay the Transfer Premium
required hereunder; and (d) the assignor remains fully liable for the obligations
of Tenant hereunder in the case of an assignment and the Affiliate Transferee
assumes full liability for Tenant’s then prospective obligations hereunder
(allocable to the portion of the Premises so transferred, for the term of the
Transfer).

15.9  Response
to Requests for Consent.  Within
twenty (20) days following delivery to Landlord of a complete notice of
Transfer together with all of the information required under Section 15.2,
Landlord shall respond by notifying Tenant whether Landlord will consent to
such Transfer in accordance with the terms hereof or that it will not grant
such consent.  If Landlord does not respond
within such period, or notifies Tenant that it will not consent to such Transfer,
Tenant may send a second written notice (the “Second Notice”) to Landlord
stating: (i) in the event of Landlord’s failure to respond, that Landlord must
respond within five (5) days following delivery of such second notice and if no
response is received, that Landlord will be deemed to have granted of such
consent; or (ii) in the event Landlord has denied consent to Tenant that Tenant
deems such denial a breach of Landlord’s obligations under this Lease. In the
event of a notice under (i), above, if Landlord does not respond in writing
within such five (5) day period, such consent shall be deemed granted. In the
event of a notice under (ii), above, if Landlord does not grant consent within
such five (5) days period, Tenant may pursue it rights under law. Landlord
shall not be in breach of this Lease for refusal to grant consent to a Transfer
unless its refusal constitutes a breach and Landlord has not granted such
consent within five (5) days following Landlord’s receipt of the Second Notice.

16.                                 Quiet
Enjoyment.

So long as Tenant
pays all rent and performs all of its other obligations as required hereunder,
Tenant shall quietly enjoy the Premises without hindrance or molestation by
Landlord or any person lawfully claiming through or under Landlord.  As used in this Lease, the term “Superior
Leases and Mortgages” means all present and future ground leases, underlying
leases, mortgages, deeds of trust or other encumbrances, and all renewals,
modifications, consolidations, replacements or extensions thereof or advances
made thereunder, affecting all or any portion of the Premises, the Project or
the Land.

17.           Mortgagee Protection.

17.1  Subordination.  Subject to the provisions of Section 30.9
and this Article 17, this Lease is subordinate to all Superior Leases
and Mortgages. Subject to the provisions of this Section 17.1, Tenant
shall execute, acknowledge and deliver any commercially reasonable
subordination, nondisturbance and attornment agreement (“SNDA”) instrument that
Landlord or the lessor, mortgagee or beneficiary under any of the Superior
Leases and Mortgages may request within twenty (20) days after request (each of
these lessors, mortgagees or beneficiaries is called a “Landlord’s Mortgagee”).  However, if Landlord, Landlord’s Mortgagee or
any other successor to Landlord elects in writing, this Lease shall be deemed
superior to the Superior Leases and Mortgages specified, regardless of the date
of recording, and Tenant shall execute a commercially reasonable agreement
confirming this election on request. Subject to having received an SNDA
consistent with the requirements of this Section 17.1 from such Landlord’s
Mortgagee, if Landlord’s Mortgagee or its successor or any successor to
Landlord succeeds to Landlord’s interests under this Lease, whether voluntarily
or involuntarily, Tenant shall attorn to such person and recognize such person
as Landlord under this Lease. 
Notwithstanding any provisions of this Section 17.1 to the
contrary, no subordination under this Section 17.1 shall be effective
(and Tenant shall not be required to execute and deliver any SNDA) unless and until
the Landlord’s Mortgagee with respect to the Superior Lease and Mortgage in
question delivers an SNDA in commercially reasonable form and otherwise in
compliance with the conditions of this Section 17 (provided that
execution by Tenant of the form of non-disturbance agreement attached hereto as
Exhibit “H” shall not be deemed an acknowledgment by Tenant that such
agreement is commercially reasonable). 
All such non-disturbance agreements shall provide the same
acknowledgment of offset rights granted to Tenant hereunder as exist in the
non-disturbance agreement attached hereto as Exhibit “H”.

17.2  Mortgagee’s Liability.  In the event that  any Monthly Rent or additional rent shall be
paid more than thirty (30) days prior to the due date thereof such advance
payments shall (except to the extent that such payments are actually received
by a Landlord’s Mortgagee) be a

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nullity as against
Landlord’s Mortgagees or their successors and Tenant shall be liable for the
amount of such payments to Landlord’s Mortgagees or their successors.

17.3  Mortgagee’s Right To Cure.  Except with respect to any right of termination
under Article 14 or Sections 3.2.1, 30.4, 30.7 and 30.16,
no default by Landlord which would entitle Tenant under the terms of this Lease
or any Laws to terminate this Lease, shall result in a release or termination
of such obligations or this Lease unless: (a) Tenant first shall have given
written notice of Landlord’s default to Landlord and all Landlord’s Mortgagees
whose names and addresses shall have been furnished to Tenant; and (b) Landlord’s
Mortgagees, after receipt of such notice, fail to correct or cure the default within
a reasonable time thereafter (but in no event more than sixty (60) days). However,
nothing contained in this Section 17.3 shall impose any obligation on Landlord’s
Mortgagees to correct or cure any default of Landlord.

18.           Estoppel
Certificates.

Tenant shall from
time to time, within fifteen (15) business days after request by Landlord,
execute and deliver to Landlord or any other person designated by Landlord an
estoppel certificate, in substantially the form of Exhibit “D” attached
hereto (or such other commercially reasonable form as may be required by
Landlord or Landlord’s Mortgagee).  An
estoppel certificate issued by Tenant pursuant to this Section shall be a
representation and warranty by Tenant which may be relied on by Landlord and by
others with whom Landlord may be dealing. 
Tenant may qualify its statements in the estoppel certificates to its
actual knowledge, provided that it does not disavow a duty to investigate.  In addition to the foregoing, Landlord hereby
agrees to provide to Tenant an estoppel certificate signed by Landlord,
containing the same types of information, and within the same periods of time,
as are set forth above.

19.           Default.

The occurrence of
any one or more of the following events shall be an “Event of Default” of this
Lease by Tenant.

19.1  Monetary Obligations.  The failure by Tenant to make any payment of rent
or any other payment required to be made by Tenant hereunder which is then due
and payable, which failure continues for a period of five (5) days after receipt
by Tenant of written notice.

19.2  Non-Monetary Obligations. The failure
by Tenant to observe or perform any of the covenants, conditions or provisions
of this Lease to be observed or performed by Tenant, other than those described
in subparagraphs 19.1 of this Article 19, where such failure
shall continue for a period of thirty (30) days after written notice of such
failure is delivered to Tenant; provided, however, if the nature of these
defaults is such that more than thirty (30) days are reasonably required to
cure, then Tenant shall not be deemed to be in default if Tenant commences such
cure within the thirty (30) day period and thereafter diligently prosecutes
such cure to completion.  Any such notice
of Landlord under Section 19.1 or this Section 19.2 (or in Sections
19.3 or 19.4) shall be in addition to any notice required under
California Code of Civil Procedure Section 1161 or any similar or successor
Laws.

19.3  Estoppel Obligations and Non Disturbance
Agreements. Tenant’s failure to deliver the estoppel certificate required
under Article 18, or any written instrument required under Article 17
within ten (10) days following written notice of such failure. 

19.4  Insurance Obligations.  Tenant’s failure to maintain the insurance policies
required hereunder and such failure shall not be cured within ten (10) days
following Landlord’s written notice of such failure.

20.           Remedies For Default.

20.1  General. In the event of any Event of
Default by Tenant, Landlord may at any time thereafter:

(a)  Terminate Tenant’s right to possession of the
Premises by any lawful means, in which case this Lease shall terminate and
Tenant shall immediately surrender possession of the Premises to Landlord.  In such event Landlord shall be entitled to
recover from Tenant all damages incurred by Landlord by reason of Tenant’s
default, including but not limited to: (i) the worth at the time of the award
of the unpaid Monthly Rent and additional rent which 

 37
 

had been earned or was
payable at the time of termination; (ii) the worth at the time of the award of
the amount by which the unpaid Monthly Rent and additional rent which would
have been earned or payable after termination until the time of the award
exceeds the amount of such rental loss that Tenant proves could have been
reasonably avoided; (iii) the worth at the time of the award of the amount by
which the unpaid Monthly Rent and additional rent which would have been paid 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; and (iv) any other amount
necessary to compensate Landlord for all Liabilities proximately caused by
Tenant’s failure to perform its obligations under the Lease or which in the ordinary
course of things would be likely to result therefrom, including, but not
limited to, any costs or expenses incurred by Landlord in maintaining or preserving
the Premises after such default, the cost of recovering possession of the
Premises, expenses of reletting, including necessary renovation or alteration
of the Premises, Landlord’s attorneys’ fees and costs incurred in connection
therewith, and any real estate commissions paid or payable in connection with
relating the Premises. As used in subsections 20.1(a)(i) and 20.1(a)(ii),
above, the “worth at the time of the award” is computed by allowing interest on
unpaid amounts at the rate of 10% per annum, or such lesser amount as may then
be the maximum lawful rate. As used in subsection 20.1(a)(iii), above,
the “worth at the time of the award” is computed by discounting such amount at
the discount rate of the Federal Reserve Bank of San Francisco at the time of
the award, plus one percent (1%).

(b)  Pursue the remedy described in California
Civil Code Section 1951.4 (lessor may continue lease in effect after lessee’s
breach and recover rent as it becomes due, if lessee has the right to sublet or
assign, subject only to reasonable limitations).  Accordingly, if Landlord does not elect to terminate
this Lease on account of any default by Tenant, Landlord may, from time to
time, without terminating this Lease, enforce all of its rights and remedies
under this Lease, including the right to recover all rent as it becomes due.

(c)  Pursue
any other right or remedy now or hereafter available to Landlord hereunder or
at law or in equity. 

20.2  Performance By Landlord.  If Tenant commits an Event of Default under this
Lease, Landlord, without waiving or curing the default, after Notice to Tenant,
may, but shall not be obligated to, perform Tenant’s obligations for the account
and at the expense of Tenant. 
Notwithstanding Section 19.3, in the case of an emergency (i.e.,
Landlord need not give any notice prior to performing Tenant’s obligations.

20.3  Post-Judgment Interest. The amount of
any judgment obtained by either party hereto against the other in any legal
proceeding arising out of a default under this Lease shall bear interest until
paid at the Interest Rate (defined below). Notwithstanding anything to the
contrary contained in any Laws, except as is provided to the contrary in this
Lease, with respect to any damages that are certain or ascertainable by
calculation, interest shall accrue from the day that the right to the damages
vests, and in the case of any unliquidated claim, interest shall accrue from
the day the claim arose.

21.           Holding Over.

21.1  Tenant Holdover. Tenant shall not hold
over in the Premises after the expiration or sooner termination of the Lease
Term without the express prior written consent of Landlord. Tenant shall
indemnify Landlord for, and hold Landlord harmless from and against, any and
all Liabilities arising out of or in connection with any delay by Tenant in
surrendering and vacating the Premises, including, without limitation, any
claims made by any succeeding tenant based on any delay and any Liabilities
arising out of or in connection with these claims. If possession of the
Premises is not surrendered to Landlord on the expiration or sooner termination
of the Lease Term, in addition to any other rights and remedies of Landlord
hereunder or at law or in equity, Tenant shall pay to Landlord for each month
or portion thereof during which Tenant holds over in the Premises a sum equal
to, for the first (1st) month of such holdover, one hundred twenty-five percent
(125%) of the Monthly Rent then payable and, after the first (1st) month of
such holdover, one hundred fifty percent (150%) of such Monthly Rent, in
addition to all other additional rent payable under this Lease.  If any tenancy is created by Tenant’s holding
over in the Premises, the tenancy shall be on all of the terms and conditions
of this Lease, except that Monthly Rent shall be increased as set forth above
and the tenancy shall be a month-to-month tenancy.  Except as provided in Section 21.2,
below, nothing in this Article 21 shall be deemed

 38
 

to permit Tenant to
retain possession of the Premises after the expiration or sooner termination of
the Lease Term.

21.2  Short Term Lease Extension.  Notwithstanding anything to the contrary set
forth in Section 21.1, above, Tenant shall have the right, upon the expiration
of the initial Lease Term or any Option Term, to extend the Lease Expiration
Date for a period of up to sixty (60) days, by giving written notice to
Landlord of such election not less than nine (9) months prior to the scheduled
Lease Expiration Date.  Upon such
election, the Lease Term shall be extended for a period of up to sixty (60)
days on all of the terms and conditions of this Lease (the “Approved Hold-Over
Period”), provided that the Base Rent payable during the Approved Hold-Over
Period shall be equal to one hundred ten percent (110%) of the Base Rent
payable immediately prior to the scheduled Lease Expiration Date.

22.           Exculpation.

22.1  Definitions.  As used in this Lease, the following terms
have the meanings set forth below:

22.1.1  Liabilities.  All losses, costs, damages, expenses, claims,
injuries, liabilities and judgments, including, but not limited to, attorneys’ fees
and costs (whether or not suit is commenced or judgment entered).

22.1.2  Landlord’s Affiliates and Tenant’s
Affiliates. All affiliates, directors, officers, shareholders, partners,
agents, employees, successors and assigns of Landlord and Tenant, respectively.

22.2  Damage To Persons Or Property.  Subject to the provisions of Section 22.4
and this Section 22.2, and except as otherwise provided in this Lease,
(i) Tenant assumes the risk of all Liabilities it may incur, including, but not
limited to, damage or injury to persons, property and the conduct of Tenant’s business
(and any loss of revenue therefrom), the loss of use or occupancy of the
Premises, and the items enumerated below in this Section 22, and waives
all claims against Landlord and Landlord’s Affiliates in connection therewith
and (ii) Landlord and Landlord’s Affiliates shall not be liable for any
Liabilities incurred by Tenant or Tenant’s Affiliates (including, but not
limited to, the Liabilities described above in this Section 22) arising
from or in connection with:  (a) acts or
omissions of any tenant of the Project or any other persons; (b) explosion,
fire, steam, electricity, water, gas or rain, pollution or contamination; (c)
the breakage, leakage, obstruction or other defects of plumbing, HVAC,
electrical, sanitary, safety, elevator or other utilities and systems of the
Project or the failure to furnish any of the foregoing; (d) any work,
maintenance, repair, rebuilding or improvement performed by or at the request
of Landlord or Landlord’s Affiliates for the Premises, the Project or the Land;
(e) any entry by Landlord or Landlord’s Affiliates on the Premises; and (f) any
other acts, omissions or causes; provided, however that notwithstanding the
foregoing, nothing in this Section exempts Landlord with respect to any
Liabilities (and this Section 22 shall not apply to any liabilities) to
the extent caused by the negligence or willful misconduct of Landlord, Landlord’s
Affiliates or any of their agents, contractors or employees.  Tenant immediately shall notify Landlord of
any defects in the Premises or any portion thereof and of any damage or injury
thereto or to persons or property in or about the Premises of which it has
actual knowledge.

22.3  Satisfaction Of Remedies.  Subject to the provisions of this Section 22.3,
Landlord shall not be personally liable for the performance of Landlord’s obligations
under this Lease and if Tenant acquires any rights or remedies against Landlord
under this Lease (including, but not limited to, the right to satisfy a
judgment), these rights and remedies shall be satisfied solely from the lesser
of the following interests: (i) the Landlord’s estate and interest in the Land
and the Project (including all rental income, net sales, condemnation awards
and any insurance proceeds which Landlord receives which are not used to repair
or rebuild the Project) and (ii) the equity that Landlord’s estate and interest
in the Land and the Project (including all rental income, net sales, condemnation
awards and any insurance proceeds which Landlord receives which are not used to
repair or rebuild the Project) would have been if the Land and Project were
encumbered by a mortgage equal to eighty percent (80%) of the value of the Land
and the Project. This article shall be enforceable by Landlord and Landlord’s
Affiliates. In no event shall Landlord be liable to Tenant for Tenant’s
consequential damages and, except with respect to a holdover, in no event shall
Tenant be liable to Landlord for Landlord’s consequential damages.

 39
 

22.4  Indemnifications

22.4.1  Tenant’s Indemnity. Subject to the
provisions of Sections 22.4.2 and 22.4.3, Tenant shall indemnify,
protect, defend and hold Landlord harmless from and against any and all claims,
demands, actions, obligations, losses, liabilities, damages, costs and
expenses, including, without limitation, attorneys’ fees and accountants’ fees
(collectively, “Claims, Costs and Damages”), incurred by or asserted against
Landlord in connection with any claim, action or demand for bodily injury or
death or property damage arising out of any matter customarily covered under a
standard commercial general liability policy occurring on or about the
Premises; provided, however, that the foregoing shall not apply to the extent
of any negligence or willful misconduct of Landlord or any of its affiliates,
employees, officers, agents, contractors or representatives.  Notwithstanding anything to the contrary
contained in this Lease, except as specifically provided in Section 21 of this
Lease, Tenant shall not be liable to Landlord under any circumstances for an
injury or damage to, or interference with, Landlord’s business, including, but
not limited to, loss of title to the Building, the Project, or any portion
thereof, loss of profits, loss of rents or other revenues, loss of business
opportunity, loss of goodwill, loss of use, or any other form of consequential
damage.

22.4.2  Landlord’s Indemnity.  Subject to the provisions of Sections 22.4.1
and 22.4.3, Landlord shall indemnify, protect, defend and hold Tenant harmless
from and against any and all Claims, Costs and Damages incurred by or asserted
against Tenant in connection with any claim, action or demand for bodily injury
or death or property damage arising out of any matter customarily covered under
a standard commercial general liability policy occurring on or about the
Project (other than within the Premises); provided, however, that the foregoing
shall not apply to the extent of any negligence or willful misconduct of Tenant
or any of its affiliates, employees, officers, agents, contractors or representatives.

22.4.3  Nonapplication. The obligations of
Landlord under Section 22.4.2 shall not apply to any Claims, Costs and
Damages (including claims for reimbursement of deductibles or self-insured
retentions) resulting from damage to any property of Tenant within the Premises
to the extent such Claims, Costs and Damages result from a peril insured (or
required to be insured) under Tenant’s Special Causes of Loss Insurance
(without regard to whether Tenant in fact carries such insurance), even if such
Claims, Costs and Damages result from the negligence or willful misconduct of
Landlord or any Landlord Party.  In turn,
the obligations of Tenant under Section 22.4.1 shall not apply to any Claims,
Costs and Damages (including claims for reimbursement of deductibles or self-insured
retentions) resulting from damage to the Project, the land thereunder, the
Premises, the Buildings and the Common Areas (and any property contained
therein including Base Building, Base Building Work (defined in the Work
Letter) and tenant improvements (other than tenant improvements in the Premises)
to the extent such Claims, Costs and Damages result from a peril insured (or required
to be insured) under Landlord’s Special Causes of Loss Insurance (without
regard to whether Landlord in fact carries such insurance), even if such
Claims, Costs and Damages result from the negligence or willful misconduct of
Tenant or of any Tenant Party.  Each
party hereto shall indemnify, protect, defend and hold the other party harmless
from and against any and all Claims, Costs and Damages arising as a result of
any failure of the indemnify party’s waiver of subrogation provided in Section
13.3.3.

23.           Rules And
Regulations.

Tenant shall
faithfully substantially observe and comply with the Rules and Regulations
attached hereto as Exhibit “E” and all reasonable nondiscriminatory additions
and modifications to the Rules and Regulations adopted from time to time by
Landlord.  Any such additions and
modifications to the Rules and Regulations shall be binding on Tenant when
delivered to Tenant (collectively, the “Rules and Regulations”).  Subject to the provisions of this Lease,
Landlord shall not incur any Liabilities to Tenant or Tenant’s Affiliates
arising from or in connection with the nonperformance of any Rules and
Regulations by any other tenants or occupants of the Project.

24.           [Intentionally
Omitted]

 40
 

25.           Brokers.

Each party
represents and warrants to the other that it has had no dealings with any
broker, finder, or similar person who is or might be entitled to a commission
or other fee in connection with introducing Tenant to the Building or in
connection with this Lease, except for Landlord’s Broker and Tenant’s Broker. Landlord
and Tenant shall indemnify each other for, and hold each other harmless from
and against, any and all claims of any person other than Landlord’s Broker and
Tenant’s Broker who claims to have introduced Tenant to the Building or dealt
with Tenant in connection with this Lease and all Liabilities arising out of or
in connection with such claims.

26.           Parking.

26.1  Basic Tenant Parking.  Subject to the provisions of this Article
26, Tenant shall rent from Landlord the Parking Spaces (as defined herein)
in the Project’s parking facilities (“Parking Facilities”) located at the
Project (“Tenant’s Parking”).

26.2  J-2 Spaces and Level A Spaces. The “Parking
Spaces” shall mean the number of unreserved parking spaces that Tenant elects
to rent hereunder which number shall, subject to the provisions of this Article
26, not exceed one (1) parking space per one thousand (1,000) rentable
square feet of the Initial Premises. Subject to the provisions of this Article
26, the Parking Spaces shall be located at the “J-2” parking garage located
at 400 S. Flower Street, Los Angeles (such located spaces being referred to
hereinafter as the “J-2 Spaces”) provided that, of the total number of such
spaces, Tenant may elect, in its discretion, to locate up to one (1) Parking
Space per eight thousand (8,000) rentable square feet of space of the Initial
Premises at the parking facilities located beneath the Project (“Level A Spaces”).
With respect to any additional space added to the Premises pursuant to Tenant’s
expansion rights contained herein, the foregoing allocation of parking spaces
shall also apply to such additional space unless otherwise specifically
provided herein. If Landlord temporarily closes access to the Parking Spaces
due to any reason, Landlord shall use its commercially reasonable efforts to
provide Tenant with Substitute Parking (as defined below). As used herein, “Substitute
Parking” shall mean: (a) parking within no more than two (2) miles of the
Project, in the event such closure is due to a casualty event or governmental
action, or (b) parking within no more than five (5) blocks if such closure is
due to any other reason, and in any event, with commercially reasonable shuttle
service (until at least 11:00 p.m. each evening) from the location of the
substitute parking to the Building if such substitute parking is not located
within five (5) blocks of the Project.

26.3  Parking Conditions. Tenant may use
Tenant’s Parking for the parking of automobiles used by Tenant, its subtenants and
their respective officers and employees, subject to payment to Landlord or the
operator of the Project’s Parking Facilities of the parking fees (which shall
not be greater than the Prevailing Rates) for parking charged to tenants of the
Project; provided, however, that the fees for the first ten (10) years of the
Lease Term shall be as set forth below. Unless Landlord or the operator of the
Parking Facilities elects otherwise, no parking spaces shall be assigned or
reserved for Tenant’s Parking. Subject to the allocation described above
between J-2 Spaces and Level A Spaces, Landlord (i) may reasonably designate
the location of Tenant’s Parking, including any spaces reserved for Tenant’s
Parking, and (ii) may from time to time reasonably relocate the same (within
J-2 or the Project’s subterranean facilities, as the case may be). The use of
Tenant’s Parking shall be governed by the reasonable and nondiscriminatory
parking rules and regulations adopted from time to time by Landlord or the
operator of the Parking Facilities. Tenant’s business visitors may park on the
Parking Facilities on a space-available basis, upon payment of the prevailing
fee for parking charged to visitors to the Project, which fee shall not exceed
the parking fees charged for comparable visitor parking at First Class
Buildings. Subject to the provisions of this Lease, neither Landlord nor
Landlord’s parking operator shall have any Liability or responsibility to
Tenant or any other party parking in the Parking Facilities for any loss or damage
that may be occasioned by or may arise out of such parking, including, without
limitation, loss of property or damage to person or property from any cause
whatsoever, and Tenant, in consideration of the parking privileges hereby
conferred on Tenant, waives any and all Liabilities against Landlord, Landlord’s
Affiliates and Landlord’s parking operator by reason of occurrences in the
Parking Facilities and the driveway exits and entrances thereto.

 41
 

26.4         Parking Fees.  The parking fees listed below for both J-2
Spaces and Level A Spaces shall be applicable throughout the Lease Term and
both Option Periods and in all cases, shall be inclusive of all taxes,
assessments or other impositions imposed by any governmental entity in
connection with Tenant’s use of such Parking Spaces.

(a) Parking fees
for the J-2 Spaces provided herein shall be as follows:

	
  Lease Years

  	
   

  	
  Monthly Charge Per Space

  
	
  1

  	
   

  	
  No Charge

  
	
  2

  	
   

  	
  $   85.00

  
	
  3-5

  	
   

  	
  $ 100.00

  
	
  6-10

  	
   

  	
  $ 150.00

  
	
  11-15 (and all Option Periods)

  	
   

  	
  Prevailing Rates
  (as defined below)

  

 

(b) Parking fees
for the Level A Spaces provided herein shall be as follows:

	
  Lease Years

  	
   

  	
  Monthly Charge Per Space

  
	
  1

  	
   

  	
  No Charge

  
	
  2

  	
   

  	
  $ 135.00

  
	
  3-5

  	
   

  	
  $ 200.00

  
	
  6-10

  	
   

  	
  $ 250.00

  
	
  11-15 (and all Option Periods)

  	
   

  	
  Prevailing Rates

  

 

26.5  Extra Parking Spaces.  Landlord and Tenant acknowledge that from
time to time “extra parking spaces” (i.e., month-to-month parking spaces which
become available because tenants of ARCO Plaza have elected not to use all of
the parking spaces made available to them pursuant to their respective leases
or because ARCO Plaza is not fully occupied and/or leased at any given time)
become available in the J-2 Garage (collectively, the “Extra Parking Spaces”).  The Extra Parking Spaces are generally made
available on a month-to-month basis at the then prevailing rate therefor, and
are subject to cancellation at any given time upon thirty (30) days prior
notice.

To the extent
available, Landlord shall make available to Tenant during the term of the Lease
up to one (1) space for every four thousand (4,000) rentable square feet of the
Premises Extra Parking Spaces for Lease by Tenant at Prevailing Rates in effect
from time to time, which Extra Parking Spaces shall be terminable (as to some
or all of the same) by Tenant on thirty (30) days advance notice, or subject to
the provisions of this Section 26.5, by Landlord on thirty (30) advance
days notice as provided below.  Once made
available and rented by Tenant, Landlord shall not terminate Tenant’s Extra
Parking Spaces unless Landlord is unable to provide any tenant of the Project
with the amount of parking to which such tenant would be able to rent on the
basis of one (1) parking space for every one thousand (1,000) rentable square
feet of space leased by such tenant, or such higher parking ratio that was
granted to such tenant under its lease with Landlord, in which case Landlord
may terminate Tenant’s Extra Parking Spaces and make such spaces available to
such other tenant of the Project.  The
foregoing restriction shall in no event prevent Landlord from allocating to
other tenants of the Project parking spaces in the J-2 Garage (or elsewhere in
the Project) for use by their employees or contractors who work at the Project
on a basis more favorable than the allocation granted to Tenant under this
Lease.  Landlord shall terminate, however,
all parking rights of all parties who are not bona fide tenants of the Project
to the extent necessary to make parking privileges available to Tenant under
this Section 26.5.

26.6  Right to Vary.  Notwithstanding any provision of this Lease
to the contrary, Tenant shall have the right throughout the Lease Term
(including both Option Periods), upon thirty (30) days’ advance notice to
Landlord, to increase and/or decrease the number of Parking Spaces then rented
by Tenant (including the Extra Parking Spaces).

26.7  Prevailing Rates.  For purposes of this Article 26, as
used herein, “Prevailing Rates” shall not exceed the parking rates charged for
comparable rights to parking under

 42
 

comparable circumstances
provided in the parking garage facilities of other First Class Buildings
located in the area shown on Exhibit “K” attached hereto.

27.           Authority To Enter
Into Lease.

If Tenant is a
corporation, each individual executing this Lease on behalf of the corporation
represents and warrants that he or she is duly authorized to execute and
deliver this Lease on behalf of the corporation, in accordance with a duly
adopted resolution of the board of directors of said corporation or in accordance
with the by-laws of said corporation, and that this Lease is binding on the
corporation in accordance with its terms. If Tenant is a partnership, each
individual executing this Lease on behalf of the partnership represents and warrants
that he or she is duly authorized to execute and deliver this lease on behalf
of the partnership, in accordance with the partnership agreement and any statements
of partnership or certificates of limited partnership of the partnership, and
that this Lease is binding on the partnership in accordance with its terms.
Tenant shall, within thirty (30) days of the execution of this Lease, deliver
to Landlord: (a) if Tenant is a corporation, a certified copy of a resolution
of the board of directors of the corporation; or (b) if Tenant is a partnership,
a copy of the Statement of Partnership or Certificate of Limited Partnership of
Tenant; and (c) other evidence reasonably satisfactory to Landlord authorizing
or ratifying the execution of this Lease.

This Lease shall
be executed by the President and Secretary of Landlord who is duly authorized
to execute and deliver this Lease on behalf of Tenant.

28.           Relocation.

(a) With respect
to partial floor portions of the Premises (other than Suite 3700) which total less
than one half (1/2) of a floor and which are not contiguous to a full floor
portion of the Premises (any such qualifying space being referred to herein as “Relocation
Premises Portion”), subject to the provisions of this Section 28 and Section
30.7.6.1, Landlord shall have the right, exercisable at any time during the
Term by delivery of not less than ninety (90) days’ prior written notice to
relocate any such Relocation Premises Portion to new space in the North Tower
at Landlord’s sole cost and expense.

(b) The new space
to which a Relocation Premises Portion shall be relocated shall be at least
equal to the Relocation Premises Portion in terms of (i) size and configuration
and floor height and (ii) quality, design, layout, condition, capacity and function
of the tenant improvements provided therein.

(c) As a condition
to application of this Section 28, Landlord shall reimburse Tenant within ten
(10) days of Tenant’s request to do so for all of Tenant’s out-of-pocket costs
and expenses of any kind incurred or expended on account of or in connection
with the relocation, including without limitation, moving costs, rewiring
expenses, equipment and furniture adjustments, rewiring and replacements, if
necessary; provided, however, that Landlord shall not be required to so
reimburse Tenant for the lost time of Tenant’s employees located in the
Relocation Premises Portion or for any lost revenues or profits purportedly
lost due to the inconvenience of the relocation.

29.           Landlord Renovations.

Subject to the provisions
of Section 3.1.3 and this Article 29, it is specifically
understood and agreed that Landlord has made no representation or warranty to
Tenant and has no obligation to alter, remodel, improve, renovate, repair or
decorate the Premises, Project, or any part thereof and that no representations
respecting the condition of the Premises, the Building or the Project have been
made by Landlord to Tenant except as specifically set forth in this Lease or in
the Tenant Work Letter. However, Tenant acknowledges that Landlord may during
the Lease Term renovate, improve, alter, or modify (collectively, the “Renovations”)
the Project, Building, Premises, and/or Land, including without limitation the
parking structure, common areas, systems and equipment, roof, and structural
portions of the same, which Renovations may include, without limitation: (a)
installing sprinklers in the Building common areas and tenant spaces, (b)
modifying the common areas and tenant spaces to comply with applicable laws and
regulations, including regulations relating to the physically disabled, seismic
conditions, and building safety and security, (c) installing new floor
covering, lighting, and wall coverings in the Building common areas, and in
connection with any Renovations, Landlord may, among other

 43
 

things, erect scaffolding
or other necessary structures in the Building, limit or eliminate access to
portions of the Land, including portions of the common areas, or perform work
in the Building, which work may create noise, dust or leave debris in the
Building, (d) renovation of the main entry to the Building and the main
Building lobby area and (e) renovation of the elevator, lobbies, elevator doors
and frames.  Subject to the provisions of
this Lease, Tenant hereby agrees that (i) such Renovations and Landlord’s
actions in connection with such Renovations shall in no way constitute a
constructive eviction of Tenant nor entitle Tenant to any abatement of Rent,
and (ii) Landlord shall have no responsibility or for any reason be liable to Tenant
for any direct or indirect injury to or interference with Tenant’s business
arising from the Renovations, nor shall Tenant be entitled to any compensation
or damages from Landlord for loss of the use of the whole or any part of the
Premises or of Tenant’s personal property or improvements resulting from the
Renovations or Landlord’s actions in connection with such Renovations, or for
any inconvenience or annoyance occasioned by such Renovations or Landlord’s
actions in connection with such Renovations. 
Notwithstanding any provision of this Lease to the contrary, and except
to the extent required by applicable laws, rules, regulations or orders of any
governmental agency having jurisdiction, Landlord shall not exercise its right
under this Section 29 in a manner which would result in the Project not
being maintained or operated in a manner consistent with the standards or First
Class Office Buildings, nor shall the exercise of Landlord’s rights under this Section
29 result in increasing Tenant’s Monthly Rent hereunder or increasing
Tenant’s payments of its share of Direct Expenses, except to the extent that
Direct Expenses may include the costs of maintaining and operating portions of
the Project affected by such renovations, nor shall the exercise of Landlord’s
rights under this Section 29 result in materially and adversely
affecting Tenant’s rights, obligations or leasehold interest under this Lease.

30.           Additional
Provisions.

30.1  Options to Extend Lease Term.

30.1.1  Grant. 
Tenant is hereby granted two (2) separate options to extend the Term of
this Lease (each such option shall be hereinafter referred to as an “Extension
Option”) as to all of the Premises or part of the Premises as provided in Section
30.1.3, below, each for an additional period of five (5) years (each such
option period shall be hereinafter referred to as an “Option Period”)
commencing on the Expiration Date of the initial Lease Term or the expiration
of the preceding Option Period, as applicable.

As used in this
Lease, “Material Event of Default” shall mean a default, following notice and
opportunity to cure as provided herein, which is material provided any monetary
default shall be deemed material.

30.1.2  Exercise.  Provided that there is no outstanding uncured
Material Event of Default (as defined below) by Tenant on the date Tenant exercises
an Extension Option, each Extension Option shall be exercised by Tenant
delivering an exercise notice (“Exercise Notice”) to Landlord, in writing, not
earlier than eighteen (18) months nor later than twelve (12) months prior to
the Expiration Date of the initial Lease Term, in the case of the first Extension
Option, or the expiration of the preceding Option Period, in the case of the
Second Extension Option.

The Monthly Rent
for the Premises for each Option Period shall be Fair Market Rental Rate (as
defined and determined below) for lease of the same term as the Option Period
commencing as of the Expiration Date. The Base Year during the applicable
Option Period shall be the calendar year in which such Option Period commences.

Subject to the
provisions of Section 30.1, if an Extension Option is duly exercised,
then the Lease Term shall automatically be extended for the applicable Option
Period and all of the terms, conditions and provisions of this Lease, as then
amended, shall continue in full force and effect throughout the applicable
Option Period, subject to the provisions of this Sections 30.1 through 30.8.
Tenant shall execute, acknowledge and deliver any and all commercially
reasonable documents reasonably requested by Landlord to memorialize any such
extension of the Lease Term. After the timely and proper exercise of an
Extension Option, all references in the Lease to the “Lease shall be deemed to
mean the Lease Term as extended and all references to Term” the “Expiration
Date” or the “end of the Lease Term” shall be deemed to mean the expiration of
the Lease Term as extended.

 44
 

30.1.3  Extension With Respect to Less than All of
the Premises. The minimum portion of the Premises with respect to which
Tenant may exercise an Extension Option (the “Extension Premises”) shall be one
(1) full floor, provided that Tenant may exercise either Extension Option as to
all of the space Tenant leases hereunder located on the 37th Floor of the South
Tower, without retaining any other portion of the Premises within the Extension
Premises. If Tenant exercises either Extension Option with respect to more than
one full floor, such Extension Premises shall consist of contiguous full
floors, except that: (i) if the Premises includes one or more full floors not
contiguous with Floors 3 and 4 of the North Tower, Tenant may exercise an
Extension Option with respect to one or more of such separated floors (provided
Tenant extends with respect to all or neither of Floors 3 and 4 of the North
Tower) and (ii) with respect to any partial floor space then leased by Tenant,
Tenant may, in addition to the full floor(s) being included within the
Extension Premises, exercise such Extension Option with respect to all(but not
less than all) of such partial floor space (or one or more of such partial
floor spaces, if Tenant then leases hereunder more than one partial floor). In
addition, in the event that Tenant does not exercise an Extension Option as to
space on any floor then included within the Premises hereunder which is
connected by an internal stairwell with another floor then leased by Tenant,
Tenant shall, at its sole cost and expense, shall remove and enclose all
portions of such internal stairwell prior to the Expiration Date with respect
to each such floor not included in the Extension Premises.

30.1.4  Monthly Rent during Each Extension Term.

30.1.4.1  Fair Market Rental Rate.  The Monthly Rent for each month during each
Option Period shall equal (a) the Fair Market Rental Rate (defined in Section
30.1.4.3) (expressed as a base rent per rentable square foot per month) for
a five (5) year lease of space of a size comparable to the Extension Premises
in question in a nonequity, nonrenewal, nonexpansion and nonsublease transaction
in the Market (defined below) as of the commencement date of such Option
Period, multiplied by (b) the number of rentable square feet to be contained in
the Extension Premises in question.

30.1.4.2  Interest Notice Procedure.  If Tenant exercises the Extension Option,
Landlord and Tenant shall promptly commence negotiations to determine the Fair
Market Rental Rate (of a five (5) year lease of the Premises as of the
commencement of the Option Period in question). 
In the event that Landlord and Tenant shall not have agreed on the Fair
Market Rental Rate and Rent Concessions within twenty (20) days thereafter (the
“Submittal Period”), each party shall submit to the other their good faith
estimates of the Fair Market Rental Rate and Rent Concessions (collectively,
the “Estimated Fair Market Rental Rates”). 
Within five (5) days following receipt of Landlord’s Estimated Fair
Market Rental Rate, Tenant may elect to rescind the exercise of its option to
renew by delivering written notice (the “Recission Notice”) of such election to
Landlord and if such notice is delivered, Tenant’s right to extend this Lease
shall terminate.  If Tenant fails to
deliver such Recission Notice within such five (5) day period, Tenant’s right
to rescind the exercise of its option will terminate.  Within ten (10) days after the expiration of
the Submittal Period, following the Exercise Deadline, the parties shall select
a mutually acceptable real estate attorney with at least eight (8) years of experience
in negotiating leases for space in high-rise office buildings in the downtown
financial district of Los Angeles.  If
the parties cannot agree on such an attorney, then within fifteen (15) days
thereafter, each shall select an independent attorney meeting the above
criteria and within fifteen (15) days thereafter the two appointed attorneys
shall select a third attorney meeting the above criteria and the third attorney
shall determine the Fair Market Rental Rate. 
If one party shall fail to make such appointment within said fifteen (15)
day period, and such failure continues for five (5) business days after written
notice thereof from the other party, then the attorney chosen by the other
party shall determine the Fair Market Rental Rate.  If the two attorneys selected by Landlord and
Tenant cannot agree on a third attorney, the third attorney shall be selected
by the then-sitting Presiding Judge of the Superior Court of California in and
for Los Angeles County.  Once the
attorney has been selected as provided above, then, as soon thereafter as
practicable, the attorney shall select one of the two Estimated Fair Market
Rental Rates submitted by Landlord and Tenant pursuant to this Section
30.1.4, which Estimated Fair Market Rental Rates shall be the one that is
closer to the Fair Market Rental Rate as determined by the attorney.  The rental so selected shall be the Fair
Market Rental Rate.  The attorney shall
render a decision pursuant hereto within fifteen (15) days.  Landlord and Tenant shall equally share the
cost of such appraisal.  The decision in
the appraisal on the issue of Fair Market Rental Rate by the attorney shall be
binding on Landlord and Tenant.  The “Exercise

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Deadline” shall be the
date twelve (12) months prior to the expiration of the Lease Term (or the first
Option Term, as the case may be).

30.1.4.3  Definition of Fair Market Rental Rate.  For purposes of this Lease, the Fair Market
Rental Rate for (i) the Extension Premises for each Option Period, or (ii) for
any other amount of space in the Project to be leased by Tenant pursuant to Sections
30.5, 30.6, 30.7, 30.8, 30.10 or 30.19
shall be equal to the monthly base rental rate at which willing tenants, as of
the commencement of the Option Period (or other lease term in question) in arms-length
transaction, are leasing non-sublease, non-encumbered, non-equity, non-expansion,
non-renewal space comparable in size, location, floor height and quality to the
Extension Premises (or other premises) in question (“Comparable Transactions”)
in the Project or in other first-class high-rise office buildings in the
Downtown Los Angeles Central Business District market outlined on Exhibit “N”
attached hereto (the “Market”) with appropriate adjustments to account for differences
in the Adjustment Factors (as defined below) between the predetermined terms of
the renewal or expansion as set forth herein, and the terms of the transactions
used for comparison.  The intent of this
provision is that the determination of Fair Market Rental Rate shall provide
for Tenant the same rent and other economic benefits, and for Landlord the same
economic benefits and burdens, that an independent landlord would give to an
independent comparable tenant in an independent but Comparable Transaction, and
to the extent that the economic concessions which would be granted to a
Comparable Tenant in a comparable transaction differ from those to be provided
to Tenant hereunder, appropriate adjustment (duplicating the adjustment that
the open market would make) in the Fair Market Rental Rate shall be made to
account for such differences.  In any
determination of Fair Market Rental Rate, consideration shall be given to any
reasonably relevant factors that may be part of the subject transaction
hereunder or the Comparable Transactions used for purposes of comparison, including
without limitation, the following factors (the “Adjustment Factors”): (a)
monthly base rental rates per rentable square foot; (b) abatement provisions
reflecting free rent during the lease term or the grant of a construction
period during which rent is to be paid; (c) any period for which operating
expenses are waived; (d) the size, location and floor height of the premises
being leased, and the size, location, age, quality, prestige, services and
amenities of the Project and the other Buildings, to the extent such factors
are relevant in the marketplace; (e) the condition and market value of the
existing tenant improvements and the existence and amount of any tenant improvement
or comparable allowance; (f) the existence and amount of any other cash payment
or other equivalent concession including, without limitation, moving
allowances, lease takeover allowances (or where a lease assumption is applicable,
the value thereof) and any comparable tenant inducement; (g) the existence of
favorable expansion and/or extension options, and the value thereof; (h)
parking rights or concessions; and (i) whether the lease transaction in
question grants to the tenant any protection from increases in any component or
all of real property taxes, and operating expenses (or alternatively the
exposure to increases in the same), and if so, the amount, value or cost
associated therewith.  If in the
Comparable Transactions used to determine Fair Market Rental Rate, it is
determined that free rent or cash allowances should be granted (collectively, “Rent
Concessions”), Landlord may elect either: 
(a) to grant some or all of the concessions granted hereunder in cash or
(b) to adjust the installments of Monthly Base Rent during such Option Period
to be an effective rental rate which takes into consideration and reduces monthly
rent by the amortized amount of the total dollar value of such Rent Concessions,
amortized on a straightline basis (with an interest rate equivalent to that
used in the Market for such calculations) over the Option Period (in which case
the Rent Concessions so amortized shall not be granted to Tenant); provided,
however that in the event Landlord shall elect to grant such Rent Concessions
in a cash form pursuant to clause (a), Tenant shall have the option to require
Landlord to take such Rent Concessions into account through reduction of
Monthly Base Rent under clause (b), above, (in lieu of granting cash concessions).

30.2  Refurbishment Allowance at Year 5.  Provided Tenant is not in Material Default
hereunder at such time, on the fifth (5th) anniversary of the Rent Commencement
Date, Landlord shall make available to Tenant an allowance (“First Refurbishment
Allowance”) payable under the same terms and conditions as the Tenant
Improvement Allowance under the Work Letter, equal to five and no/100 dollars
($5.00) per rentable square foot of Initial 515 Premises for the purpose of
making improvements to all or any portion of the Premises (or all or any portion
of any premises (including any premises on a subterranean level) in the Project
directly leased to Tenant by Landlord pursuant to a separate Lease). The
improvements performed by Tenant shall be performed under the same general terms
and conditions set forth in

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the Work Letter. Tenant
may elect to have all or any portion of the First Refurbishment Allowance used
to offset Monthly Rent next coming due after the fifth (5th) anniversary of the
Rent Commencement Date.

30.3  Refurbishment Allowance at Year 10.  Provided Tenant is not in Material Default
hereunder at such time and has not terminated this Lease as to the entire
Premises under Section 30.4, on the tenth (10th) anniversary of the Rent
Commencement Date, Landlord shall make available to Tenant an allowance (“Second
Refurbishment Allowance”) payable under the same terms and conditions as the
Tenant Improvement Allowance under the Work Letter, equal to five and no/100
dollars ($5.00) per rentable square foot of space then contained in the 515
Premises and in Suite 3700 for the purpose of making improvements to all or any
portion of the Premises (or all or any portion of any premises (including any
premises on a subterranean level) in the Project directly leased to Tenant by
Landlord pursuant to a separate lease). 
The improvements performed by Tenant shall be performed under the
general same terms and conditions set forth in the Work Letter; provided,
however, that Tenant may elect to apply all or any unused portion of the Second
Refurbishment Allowance  to offset
Monthly Rent next becoming due after the tenth (10th) anniversary of the Rent
Commencement Date by delivery of written notice to Landlord at any time after
such date.

30.4  Tenant’s Option To Terminate.  Tenant shall have the option to terminate
(the “Termination Right”) this Lease with respect to the entire Premises or
less than all of the Premises as provided in Section 30.4 (d), below,
(with that portion of the Premises being terminated pursuant to this Section
30.4 being referred to herein as “Termination Space”) as of the tenth (10th)
anniversary of the Rent Commencement Date (the “Termination Date”) on the basis
of the following terms and conditions:

(a) The
Termination Right shall be exercisable by delivery by Tenant to Landlord of
written notice (the “Termination Notice”) on or before the date that is the
ninth (9th) anniversary of the Rent Commencement Date, which notice shall state
that Tenant is terminating this Lease as to the Termination Space as of the
Termination Date.  If the Termination
Space is to be less than all of the Premises, in the Termination Notice, Tenant
shall designate the Termination Space.

(b)  Tenant shall pay to Landlord, concurrently
with delivery of the Termination Notice, an amount (the “Termination Fee”)
equal to the Attributed Unamortized Costs (as defined below), plus one month’s
Rent (based on the last month’s Rent) for the applicable space terminated.  The Attributed Unamortized Costs shall be
determined separately for the portion of the Termination Space that was leased
as part of the Initial Premises hereunder and separately for the portion of any
Additional Space or other space leased subsequent to the Initial Premises.  The Attributable Unamortized Costs for the
Initial Premises shall be determined based on the unamortized portion of the
brokerage commissions paid by Landlord (including both the commissions paid to
the Tenant’s broker and to the Landlord’s broker).  The Attributable Unamortized Costs for any
space other than the Initial Premises shall be determined based on the (i) the
unamortized portion of the brokerage commissions paid by Landlord (including
both the commissions paid to the Tenant’s broker and to the Landlord’s broker);
and (ii) any tenant improvement costs, tenant improvement allowance, free rent
and other cash tenant inducements granted by Landlord in connection with making
the lease of such additional space.  In
any case, the total of such costs under (i) and, if applicable (ii), above,
shall be shall be amortized under the “straight line” amortization method over
a period commencing with the applicable commencement date of the applicable
(i.e. terminated) portion of the Premises and ending on the date which the
Lease for such space would have expired if this termination right had not been
exercised.  In the case where the
applicable Termination Fee shall include amounts based on terminated space
which was not part of the Initial Premises, (i) at the request of Tenant,
Landlord shall consult with Tenant to clarify the amount of the Termination
Fee, and (ii) any payment by Tenant of a Termination Fee which involves
calculations with respect to terminated space which was not part of the Initial
Premises which is not insubstantially at variance with the actual Termination
Fee payable shall not render any attempted exercise of the Termination Right
invalid so long as when the actual Termination Fee amount is finally
calculated, Tenant promptly pays any deficiency in its Termination Fee payment.

(c)  As a condition of exercise of the Termination
Right there shall be no outstanding uncured Material Event of Default on the
date of the Termination Notice delivered by Tenant.

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(d) The
Termination Space may, at Tenant’s option, be designated as (i) the entire
Premises, (ii) Suite 3700 only, (iii) any full floor, or full floors, of the
Premises;  provided with respect to any
block of contiguous full floors constituting the Premises, Tenant may terminate
only the highest or the lowest floor or floors so that any remaining full
floors are contiguous or (iv) with respect to any partial floor, all the
Premises on such floor.

30.5         Storage Space.  Tenant shall have the option to rent up to
two thousand (2,000) usable square feet of storage space (“Storage Space”) on
the “D” level of the Project on a month-to-month basis.  Once Tenant elects to make such lease, Tenant
may thereafter elect to terminate the lease of such space on thirty (30) days
advance written notice to Landlord; provided, however, that subject to
availability, Tenant shall thereafter have the right upon thirty (30) days’
advance notice to Landlord, to again lease the Storage Space upon the same terms
and conditions as provided herein (including the rental rate).  The gross rental rate for the Storage Space
shall be one dollar ($1.00) per usable square foot of space during the first
five (5) Lease Years and the prevailing rate for storage space in the Project
thereafter.

30.6         [Intentionally Deleted]

30.7         Options to Add Additional Space.  Tenant is hereby granted the following
options (the “Additional Space Options”) to add one or more increments of
Additional Space to the Premises as follows:

30.7.1      First Additional Space Option.  Effective as of the third (3rd) anniversary
of the Rent Commencement Date, Tenant may elect to add an Additional Space
Installment (as defined in Section 30.7.6, below), in a location, of a configuration
and of a size as provided in Section 30.7.6, to the Premises by delivering
to Landlord written notice of such election no later than the date nine (9)
months prior to the third (3rd) anniversary of the Rent Commencement Date.

30.7.2      Second Additional Space Option.  Effective as of the fifth (5th) anniversary
of the Rent Commencement Date (or such earlier date as may be provided under Section
30.7.5), Tenant may elect to add an Additional Space Installment, in a
location and configuration and of a size as provided in Section 30.7.6
to the Premises by delivering to Landlord written notice of such election no
later than, subject to the provisions of Section 30.7.5, the date nine
(9) months prior to the fifth (5th) anniversary of the Rent Commencement Date.

30.7.3      Third Additional Space Option.  Effective as of the seventh (7th) anniversary
of the Rent Commencement Date (or such earlier date as may be provided under Section
30.7.5), Tenant may elect to add an Additional Space Installment, in a
location and configuration and of a size as provided in Section 30.7.6,
to the Premises by delivering to Landlord written notice of such election no
later than, subject to the provisions of Section 30.7.5, the date nine
(9) months prior to the seventh (7th) anniversary of the Rent Commencement Date.

30.7.4      Fourth Additional Space Option.  Effective as of the tenth (10th) anniversary
of the Rent Commencement Date (or such earlier date as may be provided under Section
30.7.5) Tenant may elect to add an Additional Space Installment, in a
location and configuration and of a size as provided in Section 30.7.6,
to the Premises by delivering to Landlord written notice of such election no
later than, subject to the provisions of Section 30.7.5, twelve (12) months
prior to the tenth (10th) anniversary of the Rent Commencement Date. The last
date on which Tenant may validly exercise a particular Additional Space Option
is sometimes referred to herein as the “Exercise Deadline” with respect
thereto.

30.7.5      Acceleration And Other Timing Issues.

The Additional
Space Options set forth in Sections 30.7.2, 30.7.3 and 30.7.4
are exercisable, subject to the provisions of Section 30.7.6, below, as
of the 5th, 7th and 10th anniversaries of the Rent Commencement Date, respectively
(the “Option Space Delivery Dates”). 
Notwithstanding such fact (and the provisions of Sections 30.7.2,
30.7.3 and 30.7.4, in the event that at  any time prior to the last date with respect
to which a particular Additional Space Option described in Sections 30.7.2,
30.7.3 and 30.7.4 may be exercised  (“Option Deadline Date”), any portion of the
Available Expansion Space (defined below) is then (or within ninety (90) days
thereafter is expected to be) vacant and is otherwise not subject to any

 48
 

lease, renewal or
expansion rights in favor of an independent third party superior to the rights
of Tenant under this Section 30.7.5 which would preclude such
acceleration (“Potential Acceleration Space”), Tenant may, by delivery of written
notice to such effect, elect to exercise, by delivery of written notice to
Landlord (an “Acceleration Exercise Notice”) one or more of the Additional Space
Installment to add to the Premises as of a date (the “Expansion Space Commencement
Date”) to be determined by Landlord, provided such date shall not be greater
than one hundred eighty (180) days following the date of delivery of such
Acceleration Notice by Landlord to Tenant. Each such Acceleration Exercise Notice
shall describe the Additional Space Option(s) then being exercised by Tenant,
the Additional Space Installment(s) desired by Tenant to be so added to the
Premises and the Expansion Space Commencement Date desired with respect thereto.
At the written request of Tenant, Landlord shall provide to Tenant reasonably
complete information from time to time concerning the possible availability of
Potential Acceleration Space and the timing of availability with respect
thereto.

The parties
acknowledge that Landlord desires to lease the Potential Expansion Space for
the maximum term possible consistent with Landlord’s obligations to deliver
Additional Space Installments of a size, configuration and location consistent
with its obligations under this Section 30.7 and on timing intervals
consistent with the Landlord’s obligation to deliver Additional Space
Installments consistent with its obligations under this Section 30.7. In
order to allow Landlord greater flexibility, subject to the conditions set
forth in this Section 30.7.5, Landlord shall have the right to vary the
Option Space Delivery Date for each of the second, third and fourth Additional Space
Options as follows:

As to the second
Additional Space Option, Landlord may vary the Option Space Delivery Date for
such Additional Space Option from the fifth (5th) anniversary of the Rent
Commencement Date to any date selected by Landlord within six (6) months before
and twelve (12) months after the fifth (5th) anniversary of the Rent
Commencement Date (i.e., any date between fifty-four (54) months and
seventy-two (72) months after the Rent Commencement Date) by delivery of
written notice to Tenant specifying the new Option Space Delivery Date not
later than one hundred twenty (120) days before the Exercise Deadline for the
Second Additional Space Option.

As to the third
Additional Space Option, Landlord may vary the Option Space Delivery Date for
such Additional Space Option from the 7th anniversary of the Rent Commencement
Date to any date selected by Landlord within six (6) months before and after
the 7th anniversary of the Rent Commencement Date (i.e., any date between
seventy-eight (78) months and ninety (90) months after the Rent Commencement
Date) by delivery of written notice to Tenant specifying the new Option Space
Delivery Date not later than one hundred twenty (120) days before the Exercise
Deadline for the Third Additional Space Option.

As to the fourth
Additional Space Option, Landlord may vary the Option Space Delivery Date for
such Additional Space Option from the 10th anniversary of the Rent Commencement
Date to any date selected by Landlord within six (6) months before and after
the 10th anniversary of the Rent Commencement Date (i.e., any date between one
hundred fourteen (114) months and one hundred twenty-six (126) months after the
Rent Commencement Date) by delivery of written notice to Tenant specifying the
new Option Space Delivery Date not later than one hundred twenty (120) days
before the Exercise Deadline for the Fourth Additional Space Option.

30.7.6      Terms Applicable to the Additional
Space.

30.7.6.1   Additional Space Installments.  The specific location, configuration and size
(within the range of rentable square feet described below) of Additional Space
shall each be determined by Landlord, provided the configuration shall in each
case be a commercially reasonable configuration. Each Additional Space
Installment shall be located on the 5th Floor or the 6th Floor of the North
Tower.  An “Additional Space Installment”
shall be any space between five thousand (5,000) and eight thousand (8,000)
rentable square feet of space as determined by Landlord and with such
configuration as Landlord may reasonably determine, provided such configuration
is commercially reasonable. Notwithstanding the foregoing, the Additional Space
Installment under Section 30.7.1, above, may, at Landlord’s election be
as small as three thousand five hundred (3,500) rentable square feet of space
or up to nine thousand five hundred (9,500) rentable square feet of space if
Landlord is satisfying its obligation hereunder by providing to Tenant the last
rentable portion of a floor.  In the
event Landlord

 49
 

elects to locate any
Additional Space on the 6th floor, such space shall not be subject to
relocation by Landlord under Article 28.

30.7.6.2   Other Terms Applicable to Additional Space.
 Each Additional Space shall be added to
the Premises subject to all other terms and conditions of the Lease except
that:

(i)            Monthly Rent; Tenant’s Share;
Base Year.  The Monthly Rent for each
Additional Space Installment shall be equal to the then Fair Market Rental Rate
for such Additional Space considering when the scheduled commencement date for
such space will occur. Tenant’s Share for each Additional Space Installment
shall be: (a) as to Tax Expenses, a fraction, the numerator of which is the
rentable area (in square feet) of the Additional Space Installment in question,
and the denominator of which is the number 2,443,000; and (b) as to Operating
Expenses, a fraction the numerator of which is the rentable area (in square
feet) of the Additional Space Installment in question, and the denominator of
which is the number 2,218,000. The Base Year shall be the year in which
commencement date for such space occurs, provided the obligation of Tenant to
pay Tenant’s Share of Excess Direct Expenses with respect to each Additional Space
Installment shall commence on the same date as such obligation shall commence
as to the remainder of the Initial Premises (i.e., on the first anniversary of
the Rent Commencement Date with respect to each Additional Space Installment).

(ii)           Condition of Additional Space.  Tenant shall lease each Additional Space
Installment in its then current condition, “broom clean” and with the Landlord’s
Work performed;

(iii)          Landlord’s Work With Respect to
Expansion Space. Prior to delivery of each Expansion Space to Tenant for
commencement of tenant improvements, Landlord shall, at Landlord’s cost and
expense (i) provide any alterations or improvements to the Building Shell and
Core required by Applicable Laws and (ii) in the event that such Expansion
Space is not then separately demised, construct (with Landlord’s Building
Standard finishes) all demising walls and public corridors required to
separately demise such Expansion Space, including without limitation, making
appropriate adjustments to distribution of Building Systems and Equipment to
account therefor (to the extent customary to do so in First Class Buildings in
demising new space on multi-tenant floors);

(iv)          Additional Corridor Work.  Landlord shall reasonably consider a Tenant
request that additional corridor work (“Additional Corridor Work”) to be
performed as provided in this Section be upgraded to a quality higher than
Building standard, provided such Additional Corridor Work shall be performed at
Tenant’s sole cost and expense either by Tenant or, at Landlord’s option, by
Landlord (in which case Landlord may require that Tenant deposit sufficient
funds with Landlord for such work) and, provided further, that Landlord may
refuse consent to such plans and specifications if it determines that the
style, finishes or other quality of the Additional Corridor Work would be
inconsistent with the image and quality of corridors Landlord then desires.

(v)           Parking.  Tenant shall be entitled to the same number of
J-2 Spaces and Level A Spaces for each such Additional Space Installment (in
terms of parking privileges per one thousand [1,000] rentable square feet of
area) as is applicable to the remainder of the Initial Premises and the parking
fees with respect to each Additional Space Installment Parking Spaces shall be
at Prevailing Rates; and

(vi)          The Rent Commencement Date.  The Rent Commencement Date for each
Additional Space Installment will be the earlier of (i) the date Tenant
commences business operations in the Additional Space Installment; and (ii) one
hundred five (105) days (or ninety [90] days if the Additional Space
Installment is delivered in shell conditions) following Landlord’s delivery of
such space for the purpose of performing Tenant’s construction of tenant
improvements to the Additional Space, which construction period shall be
extended one (1) day for each day of Construction Period Delay.

30.7.6.3   Failure to Deliver.  In the event that Landlord shall fail to
deliver any Additional Space Installment by the Option Space Delivery Date
and/or the Expansion Space Commencement Date, as the case may be, Tenant shall
have all of the same

 50
 

rights with respect
thereto as are provided to Tenant under Section 3.2.1 (for the failure
to deliver) with respect to the failure to deliver any such Additional Space
Installment.

30.8         Right of First Offer.

30.8.1      Request For Availability.

At any time during
the Lease Term, but not more frequently than twice in any calendar year, Tenant
may deliver to Landlord a written request (“Request for Notice of Availability”)
which request shall: (i) expressly reference this Section 30.8 of
the Lease and Landlord’s obligation to respond 
in writing to such request within ten (10) days of receipt as provided
below; and (ii) request that Landlord identify a space available (the “Availability
Space”) located in the elevator bank (i.e, the 3rd through 12th floors) for the
Premises. Landlord shall respond to Tenant’s request with a written notice of
the availability (“Notice of Availability”) of the Availability Space within
fifteen (15) days following receipt of the Request for Notice of Availability,
which Notice shall state any Availability Space which Landlord is then offering
to lease. If Landlord’s Notice of Availability states that any of Availability
Space is available for lease, such notice shall also state the Monthly Rent,
lease term and a general description of the other material terms that Landlord
is willing to Lease such space to Tenant. If Tenant does not accept the terms
offered by Landlord within ten (10) days of receipt of Landlord’s Notice of
Availability by written notice to Landlord, such Notice of Availability shall
terminate and be of no further force or effect as to such Availability Space;
provided, however, that if Landlord thereafter desires to lease such space
identified in the Availability Notice on terms and/or conditions materially
more economically favorable to a tenant than those contained in the Notice of
Availability, Landlord shall first offer such space to Tenant on such different
terms and/or conditions and Tenant shall then have ten (10) business days
within which to elect in writing to lease such space. Leasing terms shall not
be considered “materially more economically favorable” unless such terms
constitute at least a five percent (5%) discount to the tenant from the terms
contained in the Notice of Availability.

30.8.2      Delivery Date.  Any Tenant lease of the Availability Space shall
be for a term commencing with the date identified in Landlord’s Notice of Availability
(as such date may be adjusted in accordance with the terms below the “Availability
Space Delivery Date”) and ending on the Expiration Date of this Lease;
provided, that if Landlord’s Notice of Availability states that such space is
available for a term shorter or longer than the term of the Lease, and Landlord
has commercially reasonable reasons for establishing the availability at such
shorter or longer term, Tenant must either accept or not accept the Availability
Space for such stated term.  Landlord
shall use its commercially reasonable efforts to deliver possession of the
Availability Space to Tenant in its then “as is” condition on or reasonably
prior to the Availability Space Delivery Date.

30.8.3      Third Party Rights.  The rights of Tenant under this Section 30.8
are subject to any extension, expansion or other third party rights existing prior
to the date of this Lease affecting the Availability Space. Except as expressly
provided in this Section 30.8, Landlord shall not be restricted from
leasing the Availability Space to any third party and in no event shall
Landlord be restricted from extending the lease term of any tenant leasing the
Availability Space.

30.9         Non-Disturbance Agreement.  Tenant and the first deed-of-trust holder on
the Project (the “Bank”) (on behalf of all existing Superior Mortgagees) have executed
and delivered concurrently with its execution and delivery of this Lease a
non-disturbance, subordination and attornment agreement (“Non-Disturbance
Agreement”), substantially in the form attached hereto as Exhibit “H”.

30.10       Available Month-to-Month Leasing.  Provided Tenant is not in default hereunder,
at any time during the Term hereof, Tenant may request that Landlord lease to
Tenant on a month-to-month basis space in the Project (“Month-to-Month Space”)
of a minimum of three thousand (3,000) rentable square feet  and a maximum of ten thousand (10,000)
rentable square feet.  If appropriate
space is available in the Project, Landlord shall identify and lease such space
to Tenant on a month-to month basis at Landlord’s prevailing rates and other
terms and conditions for month-to-month tenancies at the Premises.   In no event shall Landlord be obligated to
provide more than ten thousand (10,000) rentable square feet of Month-to-Month
Space whether or not such space is available in the Project.  All Month-to-Month Space leased to

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Tenant hereunder shall be
subject to termination by Landlord or Tenant on thirty (30) days advance
written notice to the other.

30.11       Satellite Antenna.

30.11.1    Subject to Tenant obtaining the prior
approval of all Federal and all other regulatory agencies (if required) and the
obtaining of all necessary permits with respect to the Antenna (defined below),
Landlord hereby grants Tenant the non-exclusive right to install and operate on
the roof (or, at Landlord’s option, a mechanical floor (“Antenna Location”)of
the Project, at Tenant’s sole cost and expense, in an area not to exceed four
(4) feet in diameter contiguous area of at least six feet (6’) by six (6’), a
satellite antenna dish (collectively, the “Antenna”) and cables  connecting the same to the Premises.  Landlord shall reasonably cooperate with
Tenant in designating a location for the Antenna providing favorable
transmission.  Upon the installation of
the Antenna, Tenant shall reimburse Landlord for all electricity costs in
connection with such Antenna as reasonably estimated by Landlord’s engineer
within thirty (30) days after Landlord bills the same from time to time.

30.11.2    Landlord shall permit Tenant, without
charge, reasonable access to the Antenna Location for the purposes permitted
hereunder during Normal Business Hours at the Building and subject to for
Landlord’s reasonable charge, on a 24-hour, seven days a week basis upon
reasonable advance notice and scheduling through Landlord’s management and
security personnel.  Landlord reserves
the right to enter the Antenna Location, without notice, at any time for the
purpose of inspecting the same, or making repairs, additions or alterations to
the Project or to exhibit the Antenna Location to prospective tenants and
purchasers.

30.11.3    Tenant shall not install the Antenna, or
thereafter make any alterations, additions or improvements to the Building or
any part thereof or to the Antenna without Landlord’s prior written consent,
which consent shall not be unreasonably withheld, conditioned or delayed.  Landlord shall approve or reject the proposed
installation of the Antenna within two (2) weeks after Tenant submits (i)
complete plans and specifications for the installation of the Antenna, (ii)
copies of all required governmental and quasi-governmental permits, licenses
and authorizations which Tenant shall obtain at its own expense and (iii) a
certificate of insurance evidencing the coverage required herein.  Landlord may withhold approval if the
installation or operation of the Antenna may damage the structural integrity of
the Building, interfere with any service provided by Landlord or any occupant
or interfere with any Building System, reduce the amount of leasable space in
the Building, detract from the appearance of the Building, or for any other
reasonable ground.  Landlord may require
that any installation or other work be done under the supervision of Landlord’s
employees or agents, and in a manner so as to avoid damage to the Building.  All installation work shall be performed in a
good and workman-like manner, in accordance with all governmental requirements.

30.11.4    Notwithstanding anything to the contrary
contained in this Lease, such Antenna shall remain the property of Tenant and
upon termination of this Lease or Tenant’s right granted hereunder, by
expiration or otherwise, Tenant shall disconnect and remove the Antenna and
fully repair and restore the Building to the same condition than prior to
installation of the Antenna, ordinary wear and tear and damage from fire or any
other casualty or Landlord’s negligence excepted. Tenant shall promptly and
properly maintain and repair (or at Landlord’s option, pay Landlord’s
reasonable charges for repairing) during the term of this Lease and upon
termination of this Lease or the right granted hereunder, any damage or injury
to the Antenna Location, or the Building (or contents thereof) caused by Tenant’s
use of the Antenna Location or its installation, maintenance or removal of the
Antenna.

30.11.5    Landlord does not represent or warrant that
the use of the Antenna Location hereunder shall comply with any applicable
federal, state, county or local laws or ordinances or the regulations of any
other agencies, or that the Antenna Location shall be suitable for Tenant’s
purposes. Tenant agrees that Tenant has inspected the Antenna Location and
agrees to accept the same hereunder in its “as is” and “all faults” condition.
Tenant shall at all times comply with any applicable federal, state, county or
local laws or ordinances, pertaining to Tenant’s use of the Antenna Location or
the Antenna. Tenant shall not use the Antenna Location or the Antenna so as to
interfere in any way with the ability of Landlord or its tenants and occupants
of the Building and neighboring properties to receive radio, television, telephone,
microwave, short-wave, long-wave or other signals of any sort that are
transmitted through the air or atmosphere, nor so as to interfere with the use
of electric, electronic or other facilities,

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appliances, personal
property and fixtures, nor so as to interfere with the use of any antennas,
satellite dishes or other electronic or electric equipment or facilities
currently or hereafter located on the Antenna Location or any floor or area of
the Building; provided, however that Landlord shall use commercially reasonable
efforts to avoid the use of any antennas, satellite dishes or other electronic
or electric equipment or facilities that interfere with the ability of Tenant
to receive the same.

30.11.6    If the Antenna Location, Building or Antenna
are materially damaged by fire or other casualty, this license shall terminate
as of the date of such damage, subject to any the provisions of Article 14,
which by the terms or reasonable implication shall survive such
termination.  Landlord shall have no obligation
to provide substitute space on the Antenna Location or to repair or restore the
Antenna Location or the Building or the Satellite Antenna.  In the event of such damage, Tenant shall
look solely to its insurers for any claims that Tenant may have in connection
with such damage or destruction.

30.11.7    Landlord’s and Tenant’s respective indemnity
obligations provided in Article 22 shall apply with respect to the
rights granted to Tenant under this Section 30.11, such amounts, and
subject to the terms and conditions, provided in Article 13.

30.11.8    This Section 30.11 creates an
irrevocable license (subject to the terms of 
this Lease) coupled with an interest, which license shall terminate
concurrently with any termination of this Lease.  Tenant’s rights under this Section shall not
be assignable, nor may Tenant sub-license its rights under this Section
30.11, other than to an Affiliate Transferee.

Tenant may not let
any other party tie into or use the Antenna or the Antenna Location, and Tenant
may not transmit or distribute signals through the Antenna to any parties not
affiliated with Tenant. The rights granted herein are personal to Tenant and
its Affiliate Transferees. Any default by Tenant under this Section 30.11
shall also be a default under this Lease.

30.12       Monument Signage.  Landlord agrees to request ARCO and
BankAmerica (each party having rights to restrict exterior signage of the
Project) in connection with the obtaining rights to place a sign upon the
existing monument sign (the “Remodeled Monument Sign”) outside of the North
Tower on the Flower Street side of the Project and only if such rights are
obtained shall Tenant have its rights under this Section 30.12.  Tenant may deliver written notice (the  “Monument Notice”) notifying Landlord that
Tenant elects to have its name placed on the Remodeled Monument Sign subject to
the terms of this Section.  The Monument
Notice may be delivered anytime prior to the fifth (5th) anniversary of the
Commencement Date, provided that if Landlord delivers to Tenant a notice that
Landlord intends to proceed with the construction of the Remodeled Monument Sign,
at its expense, subject to the expense of Tenant to pay its share as provided
herein if Tenant elects to have its name on such Remodeled Monument sign,
Tenant shall be required to send the Monument Notice, if at all, within thirty
(30) days following the receipt of such notice by Landlord.  Tenant’s failure to timely deliver the
Monument Notice will cause all rights of Tenant under this Section 30.12
to terminate.  If Tenant properly
delivers the Monument Notice (and provided Landlord has received the consent as
required in the first sentence of this Section), Landlord shall promptly
proceed to construct the Remodeled Monument Sign and Tenant shall have the
right to have its “Approved Name” (as that term is defined below) placed on
such Remodeled Monument Sign. In no event shall this Section 30.13
require Landlord to agree to any concessions in favor of ARCO or BankAmerica in
order to obtain the right to place a monument sign at the Project.  The Approved Name shall be initially “DMJM”
or “AeCom”.  Tenant may request that the
initial name be changed (which change, if made, shall be at Tenant’s sole cost
and expense) to another name, and Landlord may reject such request if  (i) the name is not the, logo, trade name, or
another name associated with DMJM, AeCom, any corporate successor to either of
the same, or an affiliate of the foregoing, (ii) is a name that is inconsistent
with the standards for monument signs in First Class Buildings, (iii) contains
more than twenty  (20) characters
(including empty spaces), or (iv) violates any restrictions Landlord may have
agreed with any third party as to acceptable 
names for signage of the Project, provided no such restrictions shall
prohibit the names of architectural, engineering or project management firms
for real estate construction projects. 
Matters of appearance of the letters of the Approved Name shall be
subject to Landlord’s reasonable approval, consistent with the standards of the
First Class Building.  Tenant’s rights under
this Section 30.13 shall be conditional upon satisfaction of each of the
following conditions:

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(a) If and to the
extent such approval and consent is a then contractual obligation of Landlord’s,
the delivery to Landlord of the approval and consent by both BankAmerica and
ARCO (or its corporate successor) with respect to the construction and
modification of the Remodeled Monument Sign. Landlord shall  pursue such approval and consent in good
faith; and

(b) The issuance
to Landlord of all permits, consents, entitlements and approvals (in form
reasonably satisfactory to Landlord) required under Law for the modification,
operation and continued existence of the Remodeled Monument Sign.  Landlord shall pursue the same in good faith.

(c) The
reimbursement by Tenant to Landlord within thirty (30) days following Landlord’s
delivery of a statement of such costs, and subject to the terms set forth
below, or all the Initial Monument Costs (as defined below). The “Initial
Monument Costs” shall mean the out-of-pocket costs incurred by Landlord in
designing, obtaining the permits for (including attorney’s fees and consultant’s
fees) and constructing the Remodeled Monument Sign.

Tenant’s name
shall appear on the side of the Remodeled Monument Sign facing Flower Street
and Landlord may add up to three tenant, tenant-related or Landlord names on
such side in addition to that of Tenant. 
The area of the field designated at Tenant’s Approved Name shall be no
less than twenty five percent (25%) of the total area designated for the
appearance of names on the side of the Remodeled Monument Sign facing
south.  Following the placement of each
new name on the side of the Remodeled Monument Sign facing south,  Landlord shall promptly reimburse twenty five
percent (25%) (or thirty three and one third [33 1/3] if Landlord elects to
have only three [3] total names) of the amount of the Initial Monument Cost
paid by Tenant.  If Landlord places names
on the side of the Remodeled Monument Sign facing north, then Tenant’s signage rights
on such side shall be substantially the same as those provided herein with
respect to the south-facing side.

30.13       Interior Signage.  With respect to those portions of the
Premises which comprise an entire floor of the Building, Tenant may install, at
its sole cost and expense, signs identifying Tenant to the public including,
its logo, etc., on elevator lobby walls on all floors on which identification
signage for itself, its assignees, sublessees, Affiliates and other occupants (“Identification
Signage”) anywhere in the Premises, including in the elevator lobby of the
Premises, provided that such signs must not be visible from the exterior of the
Building.  If other tenants occupy space
on the floor on which the Premises is located, Tenant’s identifying signage
shall comply with Landlord’s Building standard signage program.

30.14       Competitors.  Landlord agrees that Landlord shall not,
during the term of this Lease, so long as Original Tenant (or either of them)
and its Affiliates occupy at least ninety-eight thousand five hundred (98,500)
rentable square feet or more in the Project 
(other than by reason of any temporary failure to occupy by reason of
alterations, condemnation, damage or destruction or prevention of use under Section
14.1  (the “Signage Occupancy
Threshold”), use any of the names listed in Exhibit “I” attached hereto
(the “Competitors”) to name or otherwise identify the North Tower (including,
without limitation, on any exclusive or multi-tenant monument, parapet,
eyebrow, building top or other exterior identification signage or ground floor
lobby signage located in, on or identifying the North Tower, whether existing
or to be constructed  following the date
hereof, provided however that if Landlord leases space constituting more than
one hundred forty percent (140%) of the size of the Premises to a Competitor (“Larger
Competitor Tenant”) the foregoing restrictions shall not apply to such Larger
Competitor Tenant and Landlord may grant such signage rights as it desires to
such Larger Competitor Tenant. 
Notwithstanding the foregoing, in the event that the rights granted to
Tenant shall no longer apply due to Tenant’s failure to meet the Signage
Occupancy Threshold, and subject to all signage rights that Landlord may have
provided (whether to a Competitor or other party) or be currently in
negotiations to provide, in the event that Tenant shall thereafter satisfy such
Signage Occupancy Threshold, and deliver written notice to Landlord that Tenant
again has satisfied such requirement, then the rights granted to Tenant under
this Section 30.14 shall thereafter apply.

30.15       Use of Stairwells.  Subject to all Applicable Laws and insurance requirements,
(i) Tenant will have use of the existing stairwells between the contiguous full
floors in the Building leased by Tenant hereunder for purposes of the ingress
and egress of its

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employees and their
guests and (ii) Tenant may extend its security system to encompass such
stairwells.

30.16       Abatement of Rent.  In the event that Tenant is prevented from
using, and does not use, the Premises or any portion thereof as a result of:
(i) any repair, renovation, remodeling, maintenance or alteration performed by
Landlord, or any repair, renovation, remodeling, maintenance or alteration
which is required by this Lease and which Landlord has failed to perform, which
substantially interferes with Tenant’s use of, or access to,  the Premises, (ii) any failure to provide
services or access to the Premises, (iii) damage and destruction of the
Premises or Building, or (iv) the presence of “Hazardous Materials” (each such
set of circumstances as set forth in items (i) and (iv), above, to be known as
an “Abatement Event”), then Tenant shall give Landlord notice of such Abatement
Event, and if such Abatement Event continues for(a) twenty-four (24) hours with
respect to telecommunications services or (b) three (3) consecutive business
days after Landlord’s receipt of any such notice or seven (7) days after
Landlord’s receipt of any such notice in any twelve (12) month period (the “Eligibility
Period”), then Tenant’s Monetary Obligations, shall be abated or reduced, as
the case may be, after expiration of the Eligibility Period for such time that
Tenant continues to be so prevented from using, and does not use, the Premises
or a portion thereof, in the proportion that the rentable area of the portion
of the Premises that Tenant is prevented from using, and does not use, bears to
the total rentable area of the Premises; provided, however, in the event that
Tenant is prevented from using, and does not use, a portion of the Premises for
a period of time in excess of the Eligibility Period and the remaining portion
of the Premises is not sufficient to allow Tenant to conduct its business
therein, and if Tenant does not conduct its business from such remaining
portion, then for such time after expiration of the Eligibility Period during
which Tenant is so prevented from conducting its business therein, Tenant’s
Monetary Obligations for the entire Premises shall be abated for such time as
Tenant continues to be so prevented from using, and does not use, the Premises.

If, however,
Tenant reoccupies any portion of the Premises during such period, the Monthly
Rent allocable to such reoccupied portion, based on the proportion that the
rentable area of such reoccupied portion of the Premises bears to the total
rentable area of the Premises, shall be payable by Tenant from the date Tenant
reoccupies such portion of the Premises. 
Such right to abate Tenant’s Monetary Obligations and Tenant’s
obligation to pay for parking shall be Tenant’s sole and exclusive remedy at
law or in equity with regard to an abatement of Rent in connection with an
Abatement Event; provided, however, that if Landlord has not cured such
Abatement Event within one hundred eighty (180) days after receipt of notice
from Tenant (or, in the event that the Premises or the Building are rendered
inaccessible to Tenant by a casualty or act of Landlord, one hundred eighty
(180) days following the date of Landlord’s actual knowledge of the occurrence
of the Abatement Event), Tenant shall have the right to terminate this Lease
during the first ten (10) business days of each calendar month following the
end of such one hundred eighty (180) day period until such time as Landlord has
cured the Abatement Event, which right may be exercised only by delivery of
thirty (30) days’ notice to Landlord (the “Abatement Event Termination Notice”)
during such ten (10) business-day period, and shall be effective as of a date
set forth in the Abatement Event Termination Notice (the “Abatement Event
Termination Date”), which Abatement Event Termination Date shall not be less
than thirty (30) days, and not more than six (6) months, following the delivery
of the Abatement Event Termination Notice. Notwithstanding anything contained
in this Section 30.16 to the contrary, Tenant’s Abatement Rent
Termination  Notice shall be null and
void if Landlord cures such Abatement Event within such thirty (30) day period
following receipt of the Abatement Event Termination Notice.  If Tenant’s right to abatement occurs because
of an eminent domain taking and/or because of damage or destruction to the
Premises, Tenant’s abatement period shall continue until Tenant has been given
sufficient time and sufficient access to the Premises to rebuild that portion
of the Premises, if any, which it is required to rebuild pursuant to this Lease
and to install its property, furniture, fixtures, and equipment and to move in
over a weekend.  To the extent Tenant is
entitled to abatement without regard to the Eligibility Period, because of an
event described in Article 14, above, then the Eligibility Period shall
not be applicable.  Notwithstanding the
foregoing, Tenant shall not have the right to terminate this Lease pursuant to
the terms of this Section 30.16, if, as of the date of delivery by
Tenant of the Abatement Event Termination Notice, (a) the first trust deed
holder of the Building (the “Bank”) has recorded a notice of default on the
Building or filed a notice evidencing a legal action by the Bank against
Landlord on the Building, and (b) the Bank diligently proceeds to gain possession
of the Premises and, to the extent Bank does gain possession of the Premises,
Bank shall diligently

 55
 

proceeds to cure such
Abatement Event. Except as provided in this Section 30.16, nothing
contained herein shall be interpreted to mean that Tenant is excused from
paying Rent due hereunder.

30.17       Measurement of Rentable Square Feet.  Whenever it is required that the rentable
square footage of space be determined hereunder, such determination shall be
made in accordance with the BOMA Standard Method for Measuring Floor Area in
Office Buildings, ANSI Z65.1-1996. 
Notwithstanding any provision of this Lease to the contrary, Landlord
and Tenant shall each have the right, within ninety (90) days following the
Commencement Date, to verify the number of rentable square feet provided in Section
1(h) above with respect to Suite 3700.

30.18       Arbitration 

30.18.1    General Submittals to Arbitration.  The submittal of all matters to arbitration
in accordance with the terms, covenants and conditions of this Section 30.18
is the sole and exclusive method, means and procedure to resolve any and all
claims, disputes or disagreements arising under this Lease, including, but not
limited to any matter relating to Landlord’s failure to approve an assignment,
sublease or other transfer of Tenant’s interest in the Lease under Article
15 of this Lease, any other defaults by Landlord, or any Tenant Default,
except for (i) all claims by either party which (a) seek anything other than
enforcement of rights under this Lease, or (b) are primarily founded upon
matters of fraud, willful misconduct, bad faith or any other allegations of
tortious action, and seek the award of punitive or exemplary damages, (ii)
claims relating to Landlord’s exercise of any unlawful detainer rights pursuant
to California law or rights or remedies used by Landlord to gain possession of
the Premises or terminate Tenant’s right of possession to the Premises, which
disputes shall be resolved by suit filed in the Superior Court of Los Angeles
County, California, the decision of which court shall be subject to appeal
pursuant to Applicable Law, and (iii) claims relating to the determination of
Fair Market Rental.  The parties hereby
irrevocably waive any and all rights to the contrary and shall at all times
conduct themselves in strict, full, complete and timely accordance with the
terms, covenants and conditions of this Section 30.18 and all attempts
to circumvent the terms, covenants and conditions of this Section 30.18
shall be absolutely null and void and of no force or effect whatsoever.  As to any matter submitted to arbitration (except
with respect to the payment of money) to determine whether a matter would, with
the passage of time, constitute a default, such passage of time shall not
commence to run until any such affirmative arbitrated determination, as long as
it is simultaneously determined in such arbitration that the challenge of such
matter as a potential Tenant Default or Landlord default was made in good
faith.  As to any matter submitted to
arbitration with respect to the payment of money, to determine whether a matter
would, with the passage of time, constitute a default, such passage of time
shall not commence to run in the event that the party which is obligated to
make the payment does in fact make the payment to the other party.  Such payment can be made “under protest,” which
shall occur when such payment is accompanied by a good faith notice stating the
reasons that the party has elected to make a payment under protest. Such
protest will be deemed waived unless the subject matter identified in the protest
is submitted to arbitration as set forth in this Section 30.18.

30.18.2    JAMS. 
Any dispute to be arbitrated pursuant to the provisions of this Section
30.18.2 shall be determined by binding arbitration before a retired judge
of the Superior Court of the State of California (the “Arbitrator”) under the
auspices of Judicial Arbitration & Mediation Services, Inc. (“JAMS”),
provided such person has had extensive experience in regularly representing
landlords and tenants in commercial real estate office leases (“Required
Experience”).  Such arbitration shall be
initiated by the parties, or either of them, within ten (10) days after either
party sends Notice (the “Arbitration Notice”) of a demand to arbitrate to the
other party and to JAMS. The Arbitration Notice shall contain a description of
the subject matter of the arbitration, the dispute with respect thereto, the
amount involved, if any, and the remedy or determination sought. The parties
may agree on a retired judge from the JAMS panel who has the Required
Experience. If they are unable to promptly agree, JAMS will provide a list of
three (3) available judges who have the Required Experience and each party may
strike one (1). The remaining judge (or if there are two, the one selected by
JAMS) will serve as the Arbitrator. In the event that JAMS shall no longer
exist or if JAMS fails or refuses to accept submission of such dispute or does
not have available retired judges with the Required Experience, then the
dispute shall be resolved by binding arbitration before the American

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Arbitration Association (“AAA”)
under the AAA’s commercial arbitration rules then in effect, except that the
arbitrator selected must have the Required Experience.

30.18.3    Arbitration Procedure.

30.18.3.1         Pre-Decision Actions.  The Arbitrator shall schedule a pre-hearing conference
to resolve procedural matters, arrange for the exchange of information, obtain
stipulations and narrow the issues. The parties will submit proposed discovery
schedules to the Arbitrator at the pre-hearing conference. The scope and
duration of discovery will be within the sole discretion of the Arbitrator. The
Arbitrator shall have the discretion to order a pre-hearing exchange of
information by the parties, including, without limitation, production of
requested documents, exchange of summaries of testimony of proposed witnesses,
and examination by deposition of parties and third-party witnesses. This
discretion shall be exercised in favor of discovery reasonable under the
circumstances.

30.18.3.2         The Decision.  The arbitration shall be conducted in Los
Angeles, California. Any party may be represented by counsel or other authorized
representative. In rendering a decision(s), the Arbitrator shall determine the
rights and obligations of the parties according to the substantive and
procedural laws of the State of California and the terms, covenants and conditions
of this Lease. The Arbitrator’s decision shall be based on the evidence
introduced at the hearing, including all logical and reasonable inferences
therefrom. The Arbitrator may make any determination, and/or grant any remedy
or relief (an “Arbitration Award”) that is just and equitable. The decision
must be based on, and accompanied by, a written statement of decision explaining
the factual and legal basis for the decision as to each of the principal
controverted issues. The decision shall be conclusive and binding, and it may
thereafter be confirmed as a judgment by the Superior Court of the State of
California, subject only to challenge on the grounds set forth in the California
Code of Civil Procedure Section 1286.2. The validity and enforceability of the
Arbitrator’s decision is to be determined exclusively by the California courts
pursuant to the terms, covenants and conditions of this Lease. The Arbitrator
shall award costs, including without limitation attorneys’ fees, and expert and
witness costs, to the prevailing party as defined in California Code of Civil
Procedure Section 1032 (“Prevailing Party”), if any, as determined by the
Arbitrator in his discretion. The Arbitrator’s fees and costs shall be paid by
the non-prevailing party as determined by the Arbitrator in his discretion. A
party shall be determined by the Arbitrator to be the prevailing party if its
proposal for the resolution of dispute is the closer to that adopted by the
Arbitrator.

30.19       37th Floor Right of First Refusal.

30.19.1    Restriction.  During the Term of this Lease, Landlord shall
not enter into any direct lease covering any portion of the 37th Floor of the South
Tower without first complying with each and all of the provisions of this Section
30.19.

30.19.2    First Refusal Notice.  In the event that Landlord shall determine
that it desires to lease all or any portion of the remainder of the 37th Floor
of the South Tower (“Remainder Space”) and has reached agreement with the
proposed tenant on the primary economic terms of a proposed lease with respect
thereto, it shall deliver a written notice of such fact to Tenant (a “Refusal
Notice”), which Refusal Notice shall (i) describe the location, size and
configuration of the portion of the Remainder Space proposed to be so leased (“Proposed
Space”), all material terms of the proposed transaction, the identity of the
proposed tenant and the nature of the proposed tenant’s use and business to be
conducted in the Proposed Space, (ii) shall enclose a copy of the executed letter
of intent for the proposed transaction (which shall conform to the requirements
of this Section 30.19) and a copy of any mutually executed lease, side
letters or other executed agreements concerning the proposed transaction. In
the event that the proposed transaction is proposed to affect more space in the
Project than the Remainder Space, the Refusal Notice shall cover the entire proposed
transaction but shall propose a fair and equitable allocation (and application)
of terms of such transaction to the Remainder Space. The Refusal Notice shall
constitute an offer (“Lease Offer”) by Landlord to lease to Tenant the
Remainder Space (or so much thereof that is proposed to be leased in connection
with the proposed transaction) on the same primary economic terms as are being
proposed for the Remainder Space in the proposed transaction described in the
Refusal Notice.  For purposes of this Section
30.19, “primary economic terms” means term, commencement date, base rent,
base year, method for allocating operating expenses, tenant improvement
allowance, landlord’s work, free rent, other allowances or economic
inducements, parking privileges and parking rent, tenant

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improvement construction
period, “Proposition 13” treatment (or similar treatment) if any, special
handling of direct charges, options or other rights to expand or extend and
other term which an experienced, sophisticated tenant or tenant broker would
consider a primary economic term (and which is generally performable (in the
case of tenant obligations) by most financially qualified tenants).

30.19.3    Acceptance By Tenant.  Following receipt of a proper Refusal Notice
(and all materials required to be given in connection therewith in connection
with Section 30.19.2 (collectively, “Refusal Notice Materials”), Tenant
shall be granted fifteen (15) business days to consider the Lease Offer contained
therein.  In the event that Tenant shall,
pursuant to a written notice of acceptance delivered to Landlord during such
fifteen (15) business day period, accept the Lease Offer, the Remainder Space
that is offered to be leased in the Lease Offer shall be added to the Premises
on all of the primary economic terms stated in the Lease Offer and otherwise on
all of the terms and conditions set forth in this Lease, as then amended;
provided, however, in the event that the space proposed to be leased to the
proposed tenant in the proposed transaction covers more than the Remainder
Space, the Lease Offer shall be deemed to cover only the Remainder Space and
the primary economic terms relating thereto shall be a reasonable and equitable
allocation and application of the terms of the proposed transaction to the
Remainder Space.  In the event that the Lease
Offer is not so accepted by Tenant within such fifteen (15) business day period,
Landlord shall be authorized to complete the proposed transaction described in
the Refusal Notice with the proposed tenant described therein within one
hundred twenty (120) days thereafter; provided, however, in the event that
Landlord desires to lease the Remainder Space in question to a  different tenant or to change the terms of
the lease where the overall economic terms described in the Lease Offer are
more favorable to Tenant by five percent (5%) or more, or otherwise does not
duly execute and consummate the proposed lease within such one hundred twenty
(120) day period, the provisions of this Section 30.19 shall once again apply
(as if no Refusal Notice had been previously given) and Landlord shall be
required to deliver a new Refusal Notice to Tenant hereunder.

30.19.4    During the entire Term, Tenant’s rights
under this Section 30.19 shall be superior to the rights of all other
tenants in the Project. Landlord shall provide written notice of Tenant’s
rights to all prospective tenants of the Remainder Space.

31.           General
Provisions.

31.1         Joint Obligation.  Subject to the provisions of Section 15.8,
if there is more than one person, firm, corporation, partnership or other
entity comprising Tenant, then (i) the term “Tenant” as used herein shall
include all of the undersigned; (ii) each and every provision in this Lease
shall be binding on each and every of the undersigned; (iii) Landlord shall
have the right to join one or all of the undersigned in any proceeding or to
proceed against them in any order; and (iv) Landlord shall have the right to
release any one or more of the undersigned without in any way prejudicing its
right to proceed against the others.

31.2         Marginal Headings.  The titles to the articles and Sections of
this Lease are not a part of this Lease and shall have no effect on the
construction or interpretation.

31.3         Time.  Time is of the essence for the performance of
each and every provision of this Lease to be performed by Tenant.

31.4         Successors And Assigns.  Subject to the restrictions contained in Section
15, above, this Lease binds the heirs, executors, administrators, successors
and assigns of the parties hereto.

31.5         Recordation.  Tenant shall not record this Lease or a short
form memorandum hereof without the prior written consent of Landlord, other
than that certain Memorandum of Lease in the form of Exhibit “M”
attached hereto.

31.6         Late Charges.  Tenant acknowledges that late payment of rent
shall cause Landlord to incur costs not contemplated by this Lease, the exact
amount of which shall be extremely difficult to ascertain.  These costs include, but are not limited to,
processing and accounting charges, and late charges which may be imposed on
Landlord by the terms of any Superior Leases and Mortgages. Accordingly,
subject to the provisions of this Section 31.6, if any installment of
Monthly Rent or scheduled periodic monthly payment of additional rent (the

 58
 

timing and amount of each
has been provided to Tenant in writing reasonably in advance of the due date
therefor) due from Tenant is not received by Landlord or Landlord’s designee
within five (5) days after the amount is due, Tenant shall pay to Landlord a
late charge equal to two percent (2%) of the overdue amount. Acceptance of late
charges by Landlord shall not constitute a waiver of Tenant’s default with
respect to the overdue amount, nor prevent Landlord from exercising any of the
other rights and remedies granted hereunder or at law or in equity. Notwithstanding
any provision of this Lease to the contrary, Landlord shall not charge Tenant
any such late charge for the first two (2) occurrences (“Grace Occurrences”)
during any calendar year with respect to which a late charge would otherwise be
payable hereunder so long as any such payment to which such Grace Occurrences
would otherwise apply is paid in full within five (5) days of delivery of
written notice of the delinquency of such payment by Landlord to Tenant.

31.7         Prior Agreements; Amendment, Waiver.  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 agreements or understanding pertaining to any such matters
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.  All waivers hereunder must be
in writing and specify the breach, act, omission, term, covenant or condition waived,
and acceptance of payment or other acts or omissions by either party shall not
be deemed to be a waiver.  The waiver by
any party hereto of any breach, act, omission, term, covenant or condition of
this Lease shall not be deemed to be a waiver of any other or subsequent breach,
act, omission, term, covenant or condition.

31.8         Inability To Perform.  Any material prevention, delay or stoppage
due to strikes, lockouts, labor disputes, acts of God, material inability to
obtain services, labor, or materials or reasonable substitutes therefor (other
than by reason of a party’s failure or inability to pay for the same),
governmental actions, civil commotions, fire or other casualty, and other
causes beyond the reasonable control of the party obligated to perform
(collectively, the “Force Majeure” or a “Force Majeure Event”), except with
respect to the obligations imposed with regard to Rent and other charges to be
paid by Tenant pursuant to this Lease, shall excuse the performance of such
party for a period equal to any such prevention, delay or stoppage and,
therefore, if this Lease specifies a time period for performance of an
obligation of either party, that time period shall be extended by the period of
any such delay in such party’s performance caused by a Force Majeure.  Notwithstanding any provision of this Lease
to the contrary, the provisions of this Section 31.8 shall not apply to
the following (a) the provisions of the Work Letter, (b) Landlord’s obligations
under Section 3.2.1 and (c) the rights of termination of either party
under Article 14 and Sections 3.2.1, 30.4, 30.7 and
30.16 of the Lease.

31.9         Legal Proceedings.  In any action or proceeding involving or
relating in any way to this Lease, the court or other person or entity having jurisdiction
in such action or proceeding shall award to the party in whose favor judgment
is entered the actual attorneys’ fees and costs incurred.  The party in whose favor judgment is entered
may, at its election submit proof of fees and costs as an element of damages
before entry of judgment or after entry of judgment in a post-judgment cost
bill.

31.10       Conveyance Of Premises.  Subject to the provisions of this Lease, as used
herein the term “Landlord” means only the current owner or owners of the fee
title to the Building or the lessee under a ground lease of the Land (and the
owner of the Building).  Upon each bona
fide conveyance of the Landlord’s entire interest in the Project to a bona fide
purchaser for value who unconditionally assumes in writing for the benefit of
Tenant each and all of such liabilities, covenants and obligations, the
conveying party shall be relieved of all liability under any and all of its
covenants and obligations contained in this Lease first arising out of any act,
occurrence or omission occurring under this Lease after the date of such
conveyance.  Landlord may sell, assign,
convey, encumber or otherwise transfer all or any portion of its interests in
this Lease, the Premises, the Building, the Project or the Land.

31.11       Name.  Tenant shall not use the name of the Building
or of the development in which the Building is situated, if any, for any
purpose other than as an address of the business to be conducted by Tenant in
the Premises without the prior written consent of the Landlord, which consent
shall not be unreasonably withheld, conditioned or delayed.

 59
 

31.12       Severability.  Any provision of this Lease which shall be
held invalid, void or illegal shall in no way affect, impair or invalidate any
of the other provisions hereof and such other provisions shall remain in full
force and effect.

31.13       Waiver Of Trial By Jury.  Tenant and Landlord hereby waives trial by jury
in any action, proceeding or counterclaim brought by either of the parties hereto
on any matters whatsoever arising out of or in any way connected with this
Lease.

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

31.15       Choice Of Law.  This Lease shall be governed by the laws of
the State of California applicable to transactions to be performed wholly
therein.

31.16       Signs.  Except as specifically otherwise provided in
this Lease, Tenant shall not place any sign on the Premises, the Building, the
Project or the Land which is visible from anywhere outside of the Premises,
without Landlord’s prior written consent.

31.17       Right To Lease.  Subject to the provisions of Sections 30.1,
30.2, 30.8, 30.19, and 30.14 of this Lease: (a)
Landlord reserves the absolute right to effect such other tenancies in the
Project and Building as Landlord may, in the exercise of its sole business
judgment, determine to best promote the interests of the Project and Building,
(b) Tenant does not rely on the fact, nor does Landlord represent, that any
specific tenant or type of number of tenants shall, during the Lease Term,
occupy any space in the Building or Project, and (c) Landlord shall have the
right at any time to change the name of the Building or Project and to install,
affix and maintain any and all signs on the exterior and on the interior of the
Building or Project as Landlord may, in Landlord’s sole discretion, desire.

31.18       Presumptions.  This Lease shall be construed without regard
to any presumption or other rule requiring construction against the party
drafting the document.  It shall be
construed neither for nor against Landlord or Tenant, but shall be given
reasonable interpretation in accordance with the plain meaning of its terms and
the intent of the parties.

31.19       Exhibits.  All exhibits and any riders annexed to this
Lease including, without limitation, Exhibits “A” through “N” are
incorporated herein  by this reference.

31.20       Submission Of Lease.  The submission of this Lease to Tenant or its
broker, agent or attorney for review or signature does not constitute an offer to
Tenant to lease the Premises or grant an option to lease the Premises.  This document shall not be binding unless and
until it is executed and delivered by both Landlord and Tenant.

31.21       Meaning Of Terms.  Whenever required by the context of this
Lease, the singular shall include the plural and the plural shall include the
singular, and the masculine, feminine and neuter genders shall each include the
others, and the word “person” shall include corporations, partnerships or other
entities. All monetary obligations of Tenant to Landlord under the terms of
this Lease are deemed to be rent.

31.22       Notices.  All notices, demands or communications
required or permitted under this Lease (the “Notices”) shall be in writing and
shall be personally delivered or sent by messenger, courier or facsimile.  Notices to Tenant shall be delivered to the
address set forth in Section 2.2(c) or such other address as Tenant may
specify in writing to Landlord.  Notices
to Landlord shall be delivered to the address set forth in Section 2.2(d),
or such other address as Landlord may specify in writing to Tenant.

31.23       Survival of Indemnities.  All indemnities contained herein shall survive
the expiration or earlier termination of this Lease.

31.24       Asbestos.  [INTENTIONALLY OMITTED.]

31.25       Transportation Management.  Tenant shall fully comply with all mandatory
governmental programs intended to manage parking, transportation or traffic in
and around the Project which is applicable to Tenant on account of Tenant’s
occupancy of the Premises, if and to the extent the failure to do so shall
materially affect Landlord.

 60
 

31.26       Guaranty.  [INTENTIONALLY OMITTED.]

31.27       Tenant’s Right to Offset.  If Landlord has failed to make any payment,
as and when due, of any the Tenant Improvement Allowance (defined in the Work
Letter) or the Space Planning Allowance (such unpaid delinquent amounts shall
be referred to as the “Overdue Payments”), and such Overdue Payments remains
unpaid after delivery of written notice of such failure (“Failure Notice”) to
Landlord and Landlord’s first priority lien holder (“Notice Parties”) in
writing for thirty (30) days following receipt by all of the Notice Parties of
such notice from Tenant, then, Tenant shall have the right to set off against
any Monthly Rent, Excess Direct Expenses and/or parking charges due under this
Lease such amounts not paid by Landlord plus interest thereon at the Interest
Rate and promptly following affecting such offset, shall pay (if it has not
previously done so) such Overdue Payments to the extent of such offset. The foregoing
interest shall be calculated from the date such unpaid amount was originally
due through the earlier of the date on which such amount is reimbursed by any
of the Notice Parties or the date on which such amount is credited against
Monthly Rent, and/or Additional Rent as set forth above. The Failure Notice
shall include a statement that Tenant intends to exercise this right to set off
and shall identify in reasonable detail the basis for the offset and the date
on which such amounts should have been paid to Tenant. Any dispute with respect
to Tenant’s exercise of its rights under this Section 31.27 shall be
subject to arbitration pursuant to Section 30.18 of this Lease and in the
event Landlord prevails in such dispute, then Tenant shall pay Landlord, in addition
to the amount so set off, interest thereon at the Interest Rate, calculated
from the date Tenant should have paid Landlord for the Monthly Rent, so offset
until the date Tenant actually pays Landlord therefor. In addition to the
foregoing, if the Landlord shall fail to timely make any payment it is obligated
to make to Tenant’s Broker pursuant to the brokerage agreement executed between
Landlord and Tenant’s Broker (the “Broker’s Agreement”) prior the date hereof,
Tenant may elect to make such payment to Broker on Landlord’s behalf and offset
against any Monthly Rent, Excess Direct Expenses and/or parking charges next
becoming due hereunder the amount of such payment, plus interest thereon at the
Interest Rate.

31.28       Counterparts. This Lease may be
executed in counterparts, each of which shall be an original but all of which
together shall constitute one and the same agreement.

31.29       Consent/Duty to Act Reasonably.  Except for provisions of this Lease which
expressly grant a party the right to act in its sole discretion, whereupon in
each such case Landlord’s and Tenant’s duty to act in good faith (but shall not
otherwise be subject to a “reasonableness” standard), (i) any time the consent
of Landlord or Tenant is required, such consent shall not be unreasonably
withheld, conditioned or delayed, and (ii) whenever this Lease grants Landlord
or Tenant the right to take action, exercise discretion, establish rules and
regulations or make allocations or other determinations, Landlord and

[REST OF PAGE
INTENTIONALLY LEFT BLANK]

 61

Tenant shall act
reasonably and in good faith and take no action which might result in the
frustration of the other party’s reasonable expectations concerning the
benefits to be enjoyed under this Lease. 

In Witness
Whereof, the parties hereto have caused their duly authorized representatives
to execute this Lease as of the day and date first above written.

“Landlord”

	
  Shuwa Investments Corporation,

  	
   

  
	
  a California corporation

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Takaji Kobayashi

  	
   

  	
   

  
	
  Takaji Kobayashi

  	
   

  
	
  Its: President

  	
   

  
	
   

  	
   

  
	
  “Tenant”

  	
   

  
	
   

  	
   

  
	
  Daniel, Mann, Johnson & Mendenhall Inc.,

  	
   

  
	
  a California corporation

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ R.W. Holdsworth

  	
   

  	
   

  
	
  Name:

  	
  R.W. Holdsworth

  	
   

  	
   

  
	
  Its:

  	
  CEO

  	
   

  	
   

  
	
   

  	
   

  
	
  AeCom Technology, Inc.,

  	
   

  
	
  a Delaware corporation

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Joseph A. Incaudo

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Joseph A. Incaudo

  	
   

  	
   

  
	
  Its:

  	
  VP-CFO

  	
   

  	
   

  
													

 

Exhibit “C”

Lease Confirmation

                        ,
20   

To:                              Daniel,
Mann, Johnson & Mendenhall, Inc.

Re:                               Office
Lease dated June 13, 2001, by and between Shuwa Investments Corporation, a
California corporation, as Landlord, and Daniel, Mann, Johnson &
Mendenhall, Inc., a California corporation and AeCom Technology, Inc., a
Delaware corporation, as Tenant (the “Lease”).

In accordance with the
Lease, we wish to advise you and/or confirm as follows:

1.               The
Lease Term shall commence on or has commenced on [Date], for a term of [Beginning
Term] ending on [End Term].

2.               Rent
commenced to accrue on [Date], in the amount of $[Amount].

3.               If the
Commencement Date is other than the first day of the month, the first billing
shall contain a prorata adjustment.  Each
billing thereafter, with the exception of the final billing, shall be for the
full amount of the monthly installment as provided for in the Lease.

4.               Your
rent checks should be made payable to [Payable To] at [Payable At].

TENANT HEREBY CONFIRMS
THE INFORMATION SET FORTH ABOVE.

Very truly yours,

“Landlord”

Shuwa Investments Corporation,

a California corporation

By:

[Print Name]

Its:

[Title]

“Tenant”

	
  Daniel, Mann, Johnson &
  Mendenhall, Inc.,

  	
   

  	
  AeCom Technology, Inc.,

  
	
  a California
  corporation

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
  By:

  	
  EXHIBIT - DO NOT
  SIGN

  	
   

  	
  By:

  	
  EXHIBIT - DO NOT SIGN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [Print Name]

  	
   

  	
  [Print Name]

  
	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
  [Title]

  	
   

  	
   

  	
  [Title]

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  Dated:

  	
   

  	
   

  
												

 

 C-1

Exhibit “D”

Estoppel
Certificate

To:

[Tenant Name] (“Tenant”)
hereby certifies as follows:

1.               The
undersigned is the Tenant under that certain Office Lease dated [Date] (the
“Lease”), executed by Shuwa Investments Corporation, a California corporation (“Landlord”)
as Landlord and the undersigned as Tenant, covering a portion of the property
located at [Building Address], (the “Property”).

2.               Pursuant
to the Lease, Tenant has leased approximately [Number] square feet of
space (the “Premises”) at the Property and has paid to Landlord a security deposit
of $[Amount].  The term of the
Lease commenced on [Date] and the expiration date of the Lease is [Date].  Tenant has paid rent through [Date]. The
next rental payment in the amount of $[Amount] is due on [Date].  Tenant is required to pay [Number]
percent ([Percent]%) of all annual operating expenses for the Property
in excess of [Amount].

3.               Tenant
rents [Number] parking spaces at a charge of $[Amount] per month
per space.

4.               The
Lease provides for an option to extend the term of the Lease for [Number]
years.  The rental rate for such
extension term is as follows:  [Insert
Rate Information].  Except as
expressly provided in the Lease, and other documents attached hereto, Tenant
does not have any right or option to renew or extend the term of the Lease, to
lease other space at the Property, nor any preferential right to purchase all
or any part of the Premises or the Property.

5.               True,
correct and complete copies of the Lease and all amendments, modifications and
supplements thereto are attached hereto and the Lease, as so amended, modified
and supplemented, is in full force and effect, and represents the entire
agreement between Tenant and Landlord with respect to the Premises and the
Property.  There are no amendments,
modifications or supplements to the Lease, whether oral or written, except as
follows (include the date of such amendment, modification or supplement):

6.               To the
actual knowledge of Tenant, all space and improvements leased by Tenant have
been completed and furnished in accordance with the provisions of the Lease,
and Tenant has accepted and taken possession of the Premises except as follows:

7.               To the
actual knowledge of Tenant, Landlord is not in any respect in default in the
performance of the terms and provisions of the Lease.  Tenant is not in any respect in default under
the Lease and has not assigned, transferred or hypothecated the Lease or any
interest therein or subleased all or any portion of the Premises, except as
follows.

8.               To the
actual knowledge of Tenant, there are no offsets or credits against rentals
payable under the Lease and no free periods or rental concessions have been
granted to Tenant, except as follows: 

 D-1
 

This Certificate
is given to [Name] with the understanding that [Name] shall rely
hereon in connection with the conveyance of the Property of which the Premises
constitute a part to [Name]. 
Following any such conveyance, Tenant agrees that the Lease shall remain
in full force and effect and shall bind and inure to the benefit of the [Name]
and its successor in interest as if no purchase had occurred.

	
  Dated:

  
	
   

  
	
  “Tenant”

  
	
   

  
	
  [Tenant Name]

  
	
   

  
	
  a [Type Of
  Entity]

  
	
   

  
	
  By:

  	
  EXHIBIT - DO NOT
  SIGN

  	
   

  
	
   

  
	
  [Print Name]

  
	
   

  
	
  Its:

  
	
   

  
	
   

  	
  [Title]

  

 

[Attach Lease And
Amendments To This Certificate]

 D-2

Exhibit “E”

Rules And
Regulations

1.        The
Common Area (which term shall include, for purposes of this Exhibit, all freight
elevators, common elevators and freight vestibules) sidewalks, halls, passages,
exits, entrances, shopping malls, elevators, escalators and stairways of the
Building shall not be obstructed by any of the tenants or used by them for any
purpose other than for ingress to and egress from their respective premises.
The Common Area halls, passages, exits, entrances, shopping malls, elevators,
escalators and stairways are not for the general public and Landlord shall in
all cases retain the right to control and prevent access thereto of all persons
whose presence in the reasonable judgment of Landlord would be prejudicial to
the safety, character, reputation and interests of the Building and its
tenants, provided that nothing herein contained shall be construed to prevent
such access to persons with whom any tenant normally deals in the ordinary
course of its business, unless such persons are engaged in illegal activities.
Subject to Section 30.11 of the Lease, no tenant and no agent, employee,
contractor, invitee or licensee of any tenant shall go upon the roof of the
Building. Landlord shall have the right at any time, without the same constituting
an actual or constructive eviction and without incurring any liability to any tenant
therefor, to change the arrangement or location of entrances or passageways,
doors or doorways, corridors, elevators, stairs, toilets and other common areas
of the Building other than on the full floors of the Building leased to the
Tenant.

2.        No
sign, placard, picture, name, advertisement or notice visible from the exterior
of any tenant’s premises shall be inscribed, painted, affixed or otherwise
displayed by any tenant on any part of the Building without the prior written
consent of Landlord. Landlord shall adopt and furnish to tenants general
guidelines relating to signs inside the Building and visible from the exterior
of the Premises. Tenants shall conform to such guidelines. All approved signs
or lettering on doors visible from the exterior of the Premises shall be
printed, painted, affixed or inscribed at the expense of any such tenant by a
person approved by Landlord. Material visible from outside the Building shall
not be permitted.

3.        The
Premises shall not be used for the storage of merchandise held for sale to the
general public or for lodging. Except as permitted in the Lease, no cooking
shall be done or permitted on the Premises except that private use by any
tenant of Underwriters’ Laboratory approved equipment for brewing coffee, tea,
hot chocolate and similar beverages, for preparation of meals by employees of
any such tenant in a manner customary for an employee lounge or lunchroom, and
for catering to serve food in connection with meetings or receptions shall be
permitted, provided that such use is in accordance with all applicable federal,
state and municipal laws, codes, ordinances, rules and regulations, except with
the prior written consent of Landlord.

4.        No
tenant shall employ any person or persons other than the janitor of Landlord
for the purpose of cleaning its premises unless otherwise agreed to by Landlord
in writing. Except

 E-1
 

with the written consent of Landlord, no person or persons other than
those approved by Landlord shall be permitted to enter the Building for the purpose
of cleaning the same. No tenant shall cause any unnecessary labor by reason of
such tenant’s carelessness or indifference in the preservation of good order
and cleanliness. Landlord shall not be responsible to any tenant for any loss
of property on the premises, however occurring, or for any damage done to the
effects of any tenant by the janitor or any other employee or any other person.
Provided that such standard is applied on a nondiscriminatory basis with
respect to all other tenants in the Project, Tenant shall pay to Landlord the
cost of removal of any of tenant’s refuse and rubbish, to the extent that the
same substantially exceeds the refuse and rubbish usually attendant upon the
use of tenant’s premises as offices.

5.        Landlord
shall furnish each tenant without charge with two (2) keys to each door lock
provided in the premises by Landlord. Landlord may make a reasonable charge for
any additional keys. No tenant shall alter any lock or install a new or
additional lock or any bolt on any door of its premises without Landlord’s
consent. Each tenant, upon the termination of its lease, shall deliver to
Landlord all keys to doors in the Building.

6.        Landlord
shall reasonably designate appropriate entrances and a freight elevator for
deliveries or other movement to or from any tenants’ premises of equipment,
materials, supplies, furniture or other property, and tenants shall not use any
other entrances or elevators for such purposes. The freight elevator shall be
available for use by all tenants in the Building subject to such reasonable
scheduling as Landlord in its reasonable discretion shall deem appropriate. All
persons employed and means or methods used to move equipment, materials,
supplies, furniture or other property in or out of the Building must be
approved by Landlord prior to any such movement. Landlord shall have the right
to reasonably prescribe the maximum weight, size and position of all equipment,
materials, furniture or other property brought into the Building. Heavy objects
shall, if considered necessary by Landlord, stand on a platform of such
thickness as is necessary properly to distribute the weight. Except as provided
in the Lease, Landlord shall not be responsible for loss of or damage to any
such property from any cause, and all damage done to the Building by moving or
maintaining such property shall be repaired at the expense of tenants.

7.        No
tenant shall use or keep in their premises or the Building any kerosene, gasoline
or inflammable or combustible fluid or material other than limited quantities
thereof reasonably necessary for the operation or maintenance of office
equipment without the prior written consent of Landlord. Except as permitted
under the Lease, no tenant shall use any method of heating or air conditioning
other than that supplied by Landlord. No tenant shall use or keep or permit to
be used or kept any foul or noxious gas or substance in the premises, or permit
or suffer their premises to be occupied or used in a manner offensive or
objectionable to Landlord or other occupants of the Building by reason of
noise, odors or vibrations, or interfere in any way with other tenants or those
having business in the Building, nor shall any animals or birds be brought or
kept in any tenants’ premises or the Building.

 E-2
 

8.        The
Building’s air conditioning system achieves maximum cooling when the drapes are
closed. Tenant agrees to reasonably cooperate fully at all times with Landlord
and to abide by all reasonable regulations and requirements which Landlord may
prescribe for the proper functioning and protection of said air conditioning
system (which may include the closing of window coverings consistent with the
then prevailing practices of First Class Buildings). Tenant agrees not to
connect any apparatus device, conduit or pipe to the Building chilled and hot
water conditioning supply lines. Tenant further agrees that neither Tenant nor
its servants, employees, agents, visitors, licensees or contractors shall at
any time enter mechanical installations or facilities of the Building or
adjust, tamper with, touch or otherwise in any manner affect said installations
or facilities.

9.        Intentionally
Deleted.

10.      Subject
to Tenant’s rights under the Lease, water shall be available in public areas
for drinking and lavatory purposes only, but if Tenant requests, uses or
consumes water in its Premises for any purpose in addition to ordinary drinking
and lavatory purposes above the level set forth in Section 11.1.3 of the Lease,
Landlord may install a water meter and thereby measure Tenant’s water
consumption for all purposes. Tenant shall pay Landlord for the cost set forth
in Section 11.1.3 of the Lease and throughout the duration of Tenant’s
occupancy, Tenant shall keep said meter installation equipment in good working
order and repair at Tenant’s own cost and expense, in default of which Landlord
may cause such meter and equipment to be replaced or repaired and collect the
cost thereof from Tenant. Tenant agrees to pay for water consumed, as shown on
said meter, as and when bills are rendered, and on default in making such
payment, Landlord may pay such charges and collect the same from Tenant. Any
such costs or expenses incurred, or payments made by Landlord for any of the
reasons or purposes hereinabove stated shall be deemed to be additional rent,
payable by Tenant, and collectible by Landlord as such.

11.      Subject
to Tenant’s rights under the Lease, Landlord reserves the right to stop service
of the elevator, plumbing, ventilating, air conditioning and electric systems,
when necessary, by reason of accident or emergency or for repairs, alterations
or improvements, in the judgment of Landlord necessary to be made, until said
repairs, alterations or improvements shall have been completed, and shall
further have no responsibility or liability for failure to support elevator
facilities, plumbing, ventilating, air conditioning or electric service, when
prevented from doing so by strike or accident or by any cause beyond Landlord’s
reasonable control or by laws, rules, orders, ordinances, directions,
regulations or requirements of any federal, state, county or municipal
authority or failure of gas, oil or other suitable fuel supplied or inability
by exercise of reasonable diligence to obtain gas, oil or other suitable fuel. Except
as provided in the Lease, it is expressly understood and agreed that any
covenants on Landlord’s part to furnish any service pursuant to any of the
terms, covenants, conditions, provisions or agreements of Tenant’s lease or to
perform any act or thing for the benefit of Tenant, subject to Tenant’s rights
under the Lease, shall not be deemed breached if Landlord 

 E-3
 

is unable to furnish or perform the same by virtue of a strike or labor
trouble or any other cause whatsoever beyond Landlord’s control.

12.      Landlord
reserves the right to on a consistent and nondiscriminating basis exclude from
the Building between the hours of [6:00 p.m. and 8:00 a.m.] Monday through
Friday and at all hours on Saturdays, Sundays and legal holidays all persons
who do not present identification acceptable to Landlord. Each tenant shall
provide Landlord with a list of all persons authorized by such tenant to enter
its premises and shall be liable to Landlord for all acts of such persons. Landlord
shall in no case be liable for damages for any error with regard to the
admission to or exclusion from the Building of any person. In the case of
invasion, mob, riot, public excitement or other circumstances rendering such
action advisable in Landlord’s opinion, Landlord reserves the right to prevent
access to the Building during the continuance of the same by such action as
Landlord may deem appropriate, including closing doors.

13.      Subject
to Section 11.1.8 of the Lease, the directory of the Building shall be provided
for the display of the name and location of tenants and a reasonable number of
the principal officers and employees of tenants or subtenants (approved in
accordance with terms of the Lease). The reasonable costs of the directory
board displays provided to Tenant shall be paid by Landlord in accordance with
Section 11.1.8 of the Lease. Tenant pays for additional spaces if required
under Section 11.1.8 of the Lease.

14.      No
curtains, draperies, blinds, shutters, shades, screens or other coverings,
hangings or decorations shall be attached to, hung or placed in, or used in
connection with any window of the Building without the prior written consent of
Landlord. In any event, with the prior written consent of Landlord, such items
shall be installed on the office side of Landlord’s standard window covering
and shall in no way be visible from the exterior of the Building. When notified
by Landlord that such action is necessary to maintain normal temperature
service, Tenant shall keep window coverings closed.

15.      No
tenant shall obtain for use in its premises ice, drinking water, food, beverage,
towel or other similar services, except at such reasonable hours and under such
reasonable regulations as may be established by Landlord.

16.      Each
tenant shall ensure that the doors of its premises are closed and locked and
that all water faucets, water apparatus and utilities are shut off before such
tenant or such tenant’s employees leave the premises so as to prevent waste or
damage and for any default or carelessness in this regard, such tenant shall
compensate for all injuries sustained by other tenants or occupants of the
Building or Landlord. On multiple-tenancy floors, all tenants shall keep the
doors to the Building corridors closed at all times except for ingress and
egress.

17.      Subject
to the limitations on Tenant’s liability set forth in the Lease, the toilet
rooms, toilets, urinals, wash bowls and other apparatus shall not be used for
any purpose other than that for which they were constructed, no foreign
substance of any kind whatsoever shall be thrown

 E-4
 

therein, and the expense of any breakage, stoppage or damage resulting
from the violation of this rule shall be paid by the tenant who, or whose
agent, employee, contractor, invitee or licensee, caused it.

18.      Except
with the prior written consent of Landlord, no tenant shall sell for delivery onsite
(except on an incidental basis) at retail newspapers, magazines, periodicals, theater
or travel tickets or any other goods or merchandise to the general public in or
on its premises, nor shall any tenant carry on or permit or allow any employee or
other person to carry on the business of stenography, typewriting, printing or photocopying
or any similar business (other than such services provided to Tenant’s clients and
customers and such services generally provided by an architectural firm and/or real
estate and project management firm) in or from its premises for the service or accommodation
of occupants of any other portion of the Building, nor shall the premises of any
tenant be used for manufacturing of any kind.

19.      No
tenant shall install any radio or television antenna, loudspeaker, or other
device on the roof or exterior walls of the Building without the prior written
consent of Landlord. No television or radio or recorder shall be played in such
a manner as to cause a nuisance to any other tenant.

20.      There
shall not be used in any space, or in the public halls of the Building, either
by any tenant or others, any hand trucks except those equipped with rubber
tires and side guards or such other material handling equipment as Landlord
reasonably approves. No other vehicles of any kind shall be brought by any
tenant into the Building or kept in or about its premises. It being further
understood that Tenant will have access to Tenant’s C-Level space as provided
in Section 11.1.9.3.

21.      Each
tenant shall store all its trash and garbage within its premises. No material
shall be placed in the trash boxes or receptacles if such material is of such
nature that it may not be disposed of in the ordinary and customary manner of
removing and disposing of office building trash and garbage in the vicinity of
the Building, without being in violation of any law or ordinance governing such
disposal. All garbage and refuse disposal shall be made only through entryways
and elevators provided for such purposes and at such times as Landlord shall
reasonably designate.

22.      Canvassing,
soliciting, distribution of handbills or any other written material and
peddling in the Building are prohibited, and each tenant shall reasonably
cooperate to prevent the same.

23.      The
requirements of tenants shall be attended to only upon application in writing
at the office of the Building. Employees of Landlord shall not perform any work
or do anything outside of their regular duties unless under special
instructions from Landlord.

24.      Subject
to Tenant’s rights under the Lease, Landlord may waive any one or more of these
Rules and Regulations for the benefit of any particular tenant or tenants, but
no such waiver by Landlord shall be construed as a waiver of such Rules and
Regulations in favor of any

 E-5
 

other tenant or tenants, nor prevent Landlord from thereafter enforcing
any such Rules and Regulations against any or all of the tenants of the Building.

25.      These
Rules and Regulations are in addition to, and shall not be construed to in any
way modify or amend, in whole or in part, the agreements, covenants, conditions
and provisions of any lease of premises in the Building.

26.      Landlord
reserves the right to make such other commercially reasonable and nondiscriminatory
rules and regulations as in its judgment may from time to time be needed for
the safety, care and cleanliness of the Building and for the preservation of
good order therein.

27.      All
construction projects and tenant improvement work must conform to the General
Construction and Building Rules.

28.      Notwithstanding
any provision of this Exhibit “E” to the contrary, in the event of any
inconsistency between the provisions of this Exhibit “E” and the provisions of
the body of the Lease, the provisions of the Lease shall control.

 E-6

Exhibit “F”

HVAC
SPECIFICATIONS

1.                       Generally.
Landlord maintain and operate the integrated heating, ventilating and air
cooling system (“HVAC System”) to provide sufficient cooling and heating
capacity to maintain the results set forth in Section 2, below for inside space
conditions at the Premises during Normal Business Hours and within tolerances
normal for Class A Buildings. The standards of Section 2 shall be effective
so long as the conditions of (a) and (b) are satisfied:

(A)              Tenant’s
Working Drawings and Specifications for all mechanical and electrical work
performed as part of the Tenant Improvements and Alterations are designed and
constructed for the proper capacity of, and to properly coordinate with, the
operating systems of the Building.

(B)                The
occupancy density of the Premises is not more than one (1) person for each two
hundred (200) square feet of Useable Area within the Premises, and a maximum
electrical load of two and one-half (2 1/2) watts per square foot of Rentable
Area within the Premises for Tenant’s power requirements, with “Useable Area”
determined in accordance with BOMA 1996 ANSI Z65.1 standards.

2.                       Building
HVAC Standards. Subject to Section 1, inside space conditions temperatures
shall be maintained as follows:

(A)              not
greater than seventy-five degrees (75) Fahrenheit when the outside air
temperature is not more than ninety-five degrees (95) Fahrenheit dry bulb and
sixty-eight degrees (68) Fahrenheit wet bulb; and

(B)                not
less than seventy degrees (70) Fahrenheit when the outside air temperature is
not lower than forty degrees (40) Fahrenheit dry bulb.

 F-1

Exhibit “G”

Cleaning And
Janitorial Services

1.                       Nightly
Services.

All nightly services shall be performed Monday through Friday,
fifty-two (52) weeks per year, except on holidays.

Janitorial Specifications.

1.1                 Janitorial
Service Specifications for Tenant Suite and Common Areas on Tenant Floors.

Nightly Services.

	
  1.1.1.1.

  	
   

  	
  Secure all lights as soon as possible each night.

  
	
   

  	
   

  	
   

  
	
  1.1.1.2.

  	
   

  	
  Vacuum all carpets as required.

  
	
   

  	
   

  	
   

  
	
  1.1.1.3.

  	
   

  	
  Dust mop all resilient and composition floors with
  treated dust mops. Damp mop to remove spills and water 

  
	
  stains as required.

  
	
   

  	
   

  	
   

  
	
  1.1.1.4.

  	
   

  	
  Dust all horizontal surfaces on desks and office
  furniture. (Papers, folders and personal items on desks are not 

  
	
  to be removed.)

  
	
   

  	
   

  	
   

  
	
  1.1.1.5.

  	
   

  	
  Spot clean doors, frames, glass partitions, light
  switches, wipable walls and surfaces. (Flat paint cannot be 

  
	
  cleaned.)

  
	
   

  	
   

  	
   

  
	
  1.1.1.6.

  	
   

  	
  Empty all waste paper baskets and wipe clean if
  necessary.

  
	
   

  	
   

  	
   

  
	
  1.1.1.7.

  	
   

  	
  Remove all trash from floors.

  
	
   

  	
   

  	
   

  
	
  1.1.1.8.

  	
   

  	
  Return chairs and waste baskets to proper positions.

  
	
   

  	
   

  	
   

  
	
  1.1.1.9.

  	
   

  	
  Clean drinking fountains (if applicable).

  
	
   

  	
   

  	
   

  
	
  1.1.1.10.

  	
   

  	
  Hand dust and clean tenant stairwells
  interconnecting floors and hand rails weekly.

  
	
   

  	
   

  	
   

  
	
  1.1.1.11.

  	
   

  	
  Clean and remove debris from all metal door thresholds
  weekly.

  
	
   

  	
   

  	
   

  
	
  1.1.1.12.

  	
   

  	
  Wipe clean smudged bright work weekly.

  
	
   

  	
   

  	
   

  
	
  1.1.1.13.

  	
   

  	
  Spot clean all carpets, resilient and composition
  floors weekly.

  
	
   

  	
   

  	
   

  
	
  1.1.1.14.

  	
   

  	
  Vacuum under and around all desks and office
  furniture weekly.

  
	
   

  	
   

  	
   

  
	
  1.1.1.15.

  	
   

  	
  Dust all vinyl base weekly.

  

 

Monthly Services.

	
  1.1.2.1.

  	
   

  	
  Wipe clean and polish all common area bright work.

  
	
   

  	
   

  	
   

  
	
  1.1.2.2.

  	
   

  	
  Edge all carpeted areas.

  
	
   

  	
   

  	
   

  
	
  1.1.2.3.

  	
   

  	
  Dust all high-reach areas including, but not limited
  to, tops of door frames, furniture ledges, tops of partitions, 

  
	
  picture frames, graphs and similar wall hangings.

  
	
   

  	
   

  	
   

  
	
  1.1.2.4.

  	
   

  	
  Dust all low-reach areas including, but not limited
  to, chair rungs, furniture ledges, baseboards, wood 

  
	
  paneling moldings, etc.

  
	
   

  	
   

  	
   

  
	
  1.1.2.5.

  	
   

  	
  Clean and spray buff all flooring.

  
	
   

  	
   

  	
   

  
	
  1.1.2.6.

  	
   

  	
  Brush or vacuum upholstered furniture.

  

 

 G-1
 

 

Periodic Services.

	
  1.1.3.1.

  	
   

  	
  Scrub or otherwise recondition all resilient or
  composition flooring to provide a level of appearance equivalent 

  
	
  to a completely refinished floor twice per year.

  
	
   

  
	
  1.1.3.2.

  	
   

  	
  Dust or vacuum window blinds or curtains as
  required, but not less than once per year.

  
	
   

  	
   

  	
   

  
	
  1.1.3.3.

  	
   

  	
  Dust light fixtures inside and out when replacing
  lamps or not less than once per year.

  

 

2.                       Restroom
Service Specifications.

2.1.              Nightly Services.

Restock all restrooms with supplies, including paper towels, toilet tissue,
seat covers and hand soap as required.

Restock all sanitary napkin dispensers as required.

Clean all mirrors, dispensers, faucets, flushometers and bright work.

Wash and sanitize all toilets, toilet seats, urinals and sinks.  Wipe dry all sinks.

Mop all restroom floors with disinfectant germicidal solution.

Empty all waste and sanitary napkin receptacles.

Remove all restroom trash.

Spot clean finger prints, marks and graffiti from walls, partitions, glass,
aluminum and light switches where required.

2.2.     Weekly Services.

Dust all low reach and high reach areas including, but not limited to, ledges,
mirror tops, partition tops and edges.

2.3.     Periodic Services.

Wipe down all tile walls and metal partitions. Partitions shall be left
in an unstreaked condition after this work.

Thoroughly clean all ceramic tile floors when required.

3.        Day-Cleaning Services.

3.1      Vacuum clean elevator cab floors daily.

3.2      Wipe
clean and remove finger marks from all metal bright work throughout public
areas and up to hand reach daily.

3.3.     Check
men’s washrooms for toilet tissue replacement.

3.4.     Check
ladies’ washrooms for toilet tissue and sanitary napkin replacements.

4.        General.

4.1.     Clean and treat as necessary interior and exterior of elevator
car including hatch doors (and saddles) serving Premises.

4.2      Wipe all interior window frames, mullions
and other painted or unpainted interior metal surfaces of the perimeter walls
of the Building each time the interior of the windows is washed.

4.3.     Wipe
down mail depositories nightly.

4.4.     Wipe
clean and polish all metal hardware fixtures and other bright work as needed.

 G-2
 

 

4.5.     Keep in a clean condition all public telephones and their
enclosures.

4.6.     Clean
all directory boards as required, remove fingerprints and smudges nightly.

4.7.     Maintain
Building lobby, corridors and other public areas in a clean condition.

5.        Window
Cleaning.

5.1.     Exterior
surfaces of exterior windows shall be cleaned three times per year.

5.2.     Interior
surface of exterior windows shall be cleaned once per year.

 G-3

Exhibit “H”

FORM
NON-DISTURBANCE AGREEMENT

[attached]

 H-1

Exhibit “I”

TENANT’S
COMPETITORS

1.        Ralph M. Parsons

2.        URS Corp.

3.        Jacobs/Sverdrup

4.        Parsons Brinkerhoff

5.        Gensler

6.        SOM

7.        A. C. Martin

 I-1

Exhibit “J”

CAPITAL
EXPENDITURES TO BE EXCLUDED FROM BASE YEAR (2002) AND COMPARISON YEARS

	
  Lamp Retrofit

  	
   

  	
  Placed in Service, 11/01/98

  	
   

  	
  Approximate Cost: $1,152,493

  
	
  Chiller Retrofit

  	
   

  	
  Placed in Service, 04/06/99

  	
   

  	
  Approximate Cost: $469,000

  

 

 J-1

Exhibit “L”

The following items have
been identified by Tenant as not being consistent with the standards of First
Class Buildings:

1)       Noise level on the 37th floor of the South Tower

2)       Noise level on the 9th floor of the North Tower

Provided Landlord timely
performs its obligations under Section 1.1.9 of the Work Letter (in accordance
with the standards set forth therein), Landlord shall not be in breach of
Landlord’s obligations under this Lease.

 L-1

Exhibit “M”

MEMORANDUM OF
LEASE

	
  RECORDING REQUESTED BY

  	
  )

  
	
  AND WHEN RECORDED RETURN TO

  	
  )

  
	
  PAUL, HASTINGS, JANOFSKY

  	
  )

  
	
  & WALKER LLP

  	
  )

  
	
  555 South Flower Street, 23rd Floor

  	
  )

  
	
  Los Angeles, California 90071-2371

  	
  )

  
	
  Attention: Patrick A. Ramsey, Esq.

  	
  )

  
	
   

  	
  [Space Above for
  Recorder]

  

 

MEMORANDUM OF
LEASE

THIS MEMORANDUM OF
LEASE (“Memorandum”) is entered into as of this 13th day of June, 2001, by and
between SHUWA INVESTMENTS CORPORATION, a California corporation (“Landlord”),
and DANIEL, MANN, JOHNSON AND MENDENHALL INC., a California corporation and
AECOM TECHNOLOGY, INC., a Delaware corporation (collectively, “Tenant”).

1.  Defined Terms; Exhibits. Unless
otherwise set forth herein, all defined terms used in this Memorandum shall
have the same meanings ascribed thereto in the Lease. All Exhibits referenced
herein are attached hereto, and are incorporated herein by this reference.

2.  Premises. Concurrently herewith,
Landlord and Tenant have entered into that certain Lease dated as of June 13,
2001 (“Lease”), whereby Landlord leased to Tenant, and Tenant leased from
Landlord, those certain premises described in the Lease (the “Premises”),
located in the building located at 515 South Flower Street, Los Angeles,
California and the building located at 555 South Flower Street, Los Angeles,
California.

3.  Term. The term of the Lease (“Term”) is
for a period commencing on the date on which each of Landlord and Tenant shall
execute and deliver the Lease and expiring on the last day of the month in which
the fifteenth (15th) anniversary of the Rent Commencement Date occurs (the “Expiration
Date”), unless the Rent Commencement Date is the first day of a month, in which
case the Expiration Date shall be the day immediately prior to such anniversary
of the Rent Commencement Date.

4.  Renewal. Tenant shall have two (2)
options to extend the Term (as to all of or portions of the Premises) for a
period of five (5) years each.

5.  Lease Incorporated. All the other
terms, conditions and covenants of the Lease are incorporated herein by this
reference. In the event of any inconsistency between the terms of this
Memorandum and the Lease itself, the terms of the Lease shall control.

This Memorandum
shall automatically terminate and be of no further force or effect on the
Expiration Date, or such earlier expiration or termination of the Lease.

This Memorandum
may be executed in counterparts, each of which shall be an original but all of
which together shall constitute one and the same agreement. This Memorandum is
solely for notice and recording purposes and shall not be construed to alter
modify, expand, diminish or supplement the provisions of the Lease. In the
event of any inconsistency between the provisions of this Memorandum and the
provisions of the Lease, the provisions of the Lease shall govern.

 M-1
 

 

 

	
  Arco Plaza Office Lease

  	
   

  	
  Daniel, Mann, Johnson
  & Mendelhall, Inc.

  

 

IN WITNESS
WHEREOF, this Memorandum has been duly executed by the parties hereto as of the
day and year first above written.

	
  LANDLORD:

  	
  SHUWA INVESTMENTS CORPORATION,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Takaji
  Kobayashi, President

  
	
   

  	
   

  
	
  TENANT:

  	
  DANIEL, MANN, JOHNSON & MENDENHALL INC.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  AECOM TECHNOLOGY, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Its:

  

 

 M-2

 

	
  STATE OF CALIFORNIA

  	
  )

  
	
   

  	
  )  ss.

  
	
  COUNTY OF

  	
   

  	
  )

  
			

 

On                                  ,
2001 before me, the undersigned, Notary Public in and for said State and
County, personally appeared                                                                   ,
personally known to me (or proved to me on the basis of satisfactory evidence) to
be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s)
on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.

	
  WITNESS my hand and official seal.

  
	
   

  
	
   

  
	
  Notary Public

  
	
   

  
	
   

  
	
   

  	
  (SEAL)

  

 

 

	
  STATE OF CALIFORNIA

  	
  )

  
	
   

  	
  )  ss.

  
	
  COUNTY OF

  	
   

  	
  )

  
			

 

On                                ,
2001 before me, the undersigned, Notary Public in and for said State and
County, personally appeared                                                                   ,
personally known to me (or proved to me on the basis of satisfactory evidence) to
be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed
the instrument.

WITNESS my hand and
official seal.

Notary Public

(SEAL)

 

	
  STATE OF CALIFORNIA

  	
  )

  
	
   

  	
  )  ss.

  
	
  COUNTY OF

  	
   

  	
  )

  
			

 

On                    ,
2001 before me, the undersigned, Notary Public in and for said State and
County, personally appeared                                                       ,
personally known to me (or proved to me on the basis of satisfactory evidence) to
be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.

	
  WITNESS my hand and official seal.

  
	
   

  
	
   

  
	
  Notary Public

  
	
   

  
	
   

  	
  (SEAL)

  

 

  Exhibit “N”
  MARKET

 N-1EXHIBIT
10.8

FIRST AMENDMENT TO
LEASE AGREEMENT

THIS FIRST
AMENDMENT TO LEASE AGREEMENT (“First Amendment”) is entered into on September     ,
2001 by and between SHUWA INVESTMENTS CORPORATION, a California corporation (“Landlord”),
and Daniel, Mann, Johnson & Mendenhall Inc., a California corporation (“DMJM”)
and AECOM Technology, Inc., a Delaware corporation (“AECom”). Together, DMJM
and AECOM are referred to herein as “Tenant”.

RECITALS:

A.            Landlord and Tenant
are parties to that certain Lease Agreement (the “Lease Agreement”) dated June
1, 2001 for the Premises (as defined in the Lease) in the Project (as defined
in the Lease) located in Los Angeles California and commonly known as “Arco
Plaza”. The Premises consists of space on the 3rd, 4th, 8th and 9th floors in
the office tower at 515 South Flower Street Los Angeles, California and on the
37th floor in the office tower at 555 South Flower Street Los Angeles,
California. Unless the context requires otherwise, as used in this First
Amendment, the term “Lease” shall include the Lease Agreement as amended by
this First Amendment. All capitalized terms not defined herein shall have the same
meaning ascribed to them in the Lease.

B.            Landlord and Tenant
desire that the Lease Agreement shall be amended to provided for month-to-month
lease of certain space in the Project as provided below.

NOW, THEREFORE,
the parties agree to amend the Lease Agreement as follows:

1.  Amendments To Lease.

1.1  Temporary Space. Pursuant to Section
30.10 of the LeaseAgreement, Landlord hereby leases to Tenant, on a
month-to-month basis, that certain space consisting of eleven thousand and
ninety eight (11,098) rentable square feet of space (the “Temporary Space”) as
shown on the attached Exhibit A, effective on the Effective Date (as defined
below). The Effective Date shall mean the date Landlord delivers the Temporary
Space to Tenant following the mutual execution and delivery of this First
Amendment. Except as otherwise provided herein, the Temporary Space shall be
deemed part of the Premises for all purposes under the Lease.

1.2  Month-to-Month Lease Term. The lease
of the Temporary Space may be terminated by either Landlord or Tenant by
delivery of thirty (30) days written notice of such termination to the other
party.

1.3  Monthly Rent. The Monthly Rent for the
Temporary Space shall be Twenty Two Thousand One Hundred and Ninety Six Dollars
($22,196.00). Such monthly rent shall be paid concurrently with the rent for
the remainder of the Premises.

 1
 

 

	
  FIRST AMENDMENT

  	
  DMJM AND AECOM

  

 

1.4.  Direct Expenses. No Direct Expenses
shall be payable with respect to the Temporary Space.

1.5.  As-Is Condition. Tenant acknowledges
that it has fully inspected the Temporary Space and accepts such space in its “AS-IS”
condition. The Temporary Space shall be delivered in broom-clean condition and
free of debris. In no event shall Landlord be obligated to make any
improvements or alterations to the Temporary Space. Landlord shall not provide
any economic concessions (such as improvement allowance or free rent) with
respect to the Temporary Space.

1.6  Section 30.10 This First Amendment
shall be deemed to satisfy Landlord’s obligations to provide space to Tenant
under Section 30.10 of the Lease.

2.             No Brokers.
Tenant represents and warrants to Landlord that Tenant has dealt with no
brokers or similar persons or entities in connection with this agreement and
that, insofar as Tenant knows, no brokers or similar persons or entities are
entitled to any commission in connection herewith.

3.             Affirmance.
Except as expressly amended hereby, all of the terms, covenants, conditions,
provisions and agreements of the Lease remain unchanged and in full force and
effect.

4.             Present Status.
Tenant certifies to Landlord that, to the best of Tenant’s knowledge, as of the
execution and delivery of this letter agreement by Tenant, Landlord is not in
default under the Lease by reason of failure to perform any obligations
thereunder and there is no circumstance, event, condition or state of facts
which, by the passage of time or the giving of notice, or both, could
constitute or result in such a default.

5.             Submission Of
Agreement. The submission of this document to Tenant or Tenant’s broker,
agent or attorney for review or signature does not constitute an offer. This
document shall not be binding unless and until it is executed and delivered by
both parties hereto.

 2
 

 

IN WITNESS
WHEREOF, Landlord and Tenant have duly executed this First Amendment as of the
day and year first written above.

LANDLORD

SHUWA INVESTMENTS
CORPORATION,

a California corporation

	
  By:

  	
  /s/ Takaji Kobayashi

  	
   

  
	
   

  	
  Takaji Kobayashi

  
	
   

  	
   

  
	
  Its:

  	
  President

  
	
   

  
	
  TENANT

  

 

Daniel, Mann, Johnson
& Mendenhall Inc., a California corporation and

	
  By:

  	
  /s/ Ray Landy

  	
   

  
	
   

  	
  Ray Landy

  	
   

  
	
   

  	
  PRINT NAME

  
	
   

  	
   

  
	
  Its:

  	
  SR. V.P.

  	
   

  
	
   

  	
  TITLE

  
	
   

  
	
  By:

  	
  /s/ Fred Gans

  	
   

  
	
   

  	
  Fred Gans

  	
   

  
	
   

  	
  PRINT NAME

  
	
   

  	
   

  
	
  Its:

  	
  V.P.

  	
   

  
	
   

  	
  TITLE

  
	
   

  
	
  AECOM Technology, Inc., a Delaware corporation

  
	
   

  
	
  By:

  	
  /s/ Joseph A. Incaudo

  	
   

  
	
   

  	
  Joseph A. Incaudo

  	
   

  
	
   

  	
  PRINT NAME

  
	
   

  	
   

  
	
  Its:

  	
  EXEC. V.P.

  	
   

  
	
   

  	
  TITLE

  
	
   

  
	
  By:

  	
  /s/ Stephanie A. Hunter

  	
   

  
	
   

  	
  Stephanie A. Hunter

  	
   

  
	
  

  	
  PRINT NAME

  
	
   

  	
   

  
	
  Its: 

  	
  Chief Admin Officer, VP

  	
   

  
	
   

  	
  TITLE

  

 

 3

ARCO PLAZA

NORTH TOWER

515 SOUTH FLOWER STREET

LOS ANGELES,
CALIFORNIA

EXHIBIT -A-

PREMISES FLOOR
PLAN

[PLANT MAP]

Suite 500

11,098 RSF

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