Document:

Exhibit 10.34

 

OFFICE LEASE

 

between

 

2140 LAKE, LLC.

a Delaware limited liability company

 

(Landlord)

 

and

 

WILSHIRE STATE BANK

A California Banking Corporation

 

(Tenant)

 

 

OFFICE LEASE

 

TABLE OF CONTENTS

 

	
  ARTICLE I - DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II - PREMISES

  	
   

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE III - TERM

  	
   

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV - RENTAL

  	
   

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE V - SECURITY
  DEPOSIT

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI - USE OF
  PREMISES

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII - UTILITIES
  AND SERVICES

  	
   

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII - MAINTENANCE
  AND REPAIRS

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX - ALTERATIONS,
  ADDITIONS AND IMPROVEMENTS

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE X - INDEMNIFICATION
  AND INSURANCE

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI - DAMAGE OR
  DESTRUCTION

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII - CONDEMNATION

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII - RELOCATION

  	
   

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV - ASSIGNMENT
  AND SUBLETTING

  	
   

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV - DEFAULT
  AND REMEDIES

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVI - ATTORNEYS’
  FEES: COSTS OF SUIT

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVII - SUBORDINATION
  AND ATTORNMENT

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVIII - QUIET
  ENJOYMENT

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIX - RULES AND
  REGULATIONS

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE XX - ESTOPPEL
  CERTIFICATES

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXI - ENTRY BY
  LANDLORD

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXII

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXIII - HOLDOVER
  TENANCY

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXIV - NOTICES

  	
   

  	
  25

  

 

 

	
  ARTICLE XXV - BROKERS

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXVI - ELECTRONIC
  SERVICES

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXVII - PARKING

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXVIII - MISCELLANEOUS

  	
   

  	
  28

  

 

EXHIBITS

 

	
  Exhibit A

  	
   

  	
  Floor Plan

  
	
  Exhibit B

  	
   

  	
  Work Letter

  
	
  Exhibit C

  	
   

  	
  Rules and Regulations

  
	
  Exhibit D

  	
   

  	
  Personal Guaranty

  
	
  Exhibit E

  	
   

  	
  Suite Acceptance
  Agreement

  
	
  Exhibit F

  	
   

  	
  Asbestos Notification

  
	
  Addendum

  	
   

  	
   

  

 

 

OFFICE LEASE

 

THIS OFFICE LEASE (“Lease”), dated July 31, 2009, is made and
entered into by and between 2140 Lake, LLC, a Delaware limited liability
company, c/o Jamison Services, Inc., a California corporation (“Landlord”) and
Wilshire State Bank, a California Banking Corporation (“Tenant”)
upon the following terms and conditions:

 

ARTICLE I - DEFINITIONS

 

Unless the context
otherwise specifies or requires, the following terms shall have the meanings
specified herein;

 

1.01         Building.  The term “Building” shall mean that
certain office building located at 2140 West Olympic Boulevard Los Angeles,
California commonly known as 2140 Lake together with any related land,
improvements, parking facilities, common areas, driveways, sidewalks and
landscaping.

 

1.02         Premises. The term “Premises” shall mean Suite 100 in
the 2140 Lake Building, as more particularly outlined on the drawing attached
hereto as Exhibit A and incorporated herein by reference. As used herein,
“Premises” shall not include any storage area in the Building, which shall be
leased or rented pursuant to separate agreement.

 

1.03         Rentable Area of the
Premises.  The
term “Rentable Area of the Premises” shall mean approximately 9,247 rentable square feet, which Landlord
and Tenant have stipulated as the Rentable Area of the Premises. Tenant
acknowledges that the Rentable Area of the Premises includes the usable area,
without deduction for columns or projections, multiplied by a load factor to
reflect a share of certain areas, which may include lobbies, corridors,
mechanical, utility, janitorial, boiler and service rooms and closets,
restrooms and other public, common and service areas of the Building.

 

1.04         Lease Term.  The term “Lease Term” shall mean the
period between the Commencement Date and the Expiration Date (as such terms are
hereinafter defined), unless sooner terminated as otherwise provided in this
Lease.

 

1.05         Commencement Date.  Subject to adjustment as provided in Article 3,
the term “Commencement Date” shall mean August 15,
2009.

 

1.06         Expiration Date.  Subject to adjustment as provided in Article 3,
the term “Expiration Date” shall mean the date that is 120 months after the Commencement Date.

 

1.07         Base Rent. Subject to adjustment as provided in Article 4,
the term “Base Rent” for the Premises shall mean $1.50 per rentable square foot per month for the first twelve
(12) months of the Lease Term, with an annual increase of three percent (3.0%) thereafter
as approximated the following table:

 

	
  Year of Lease Term

  	
   

  	
  Monthly Installment

  of Base Rent

  	
   

  	
  Monthly Rental Rate per Rentable

  Square Foot of the Premises

  	
   

  
	
  1

  	
   

  	
  $

  	
  13,870.50

  	
   

  	
  $

  	
  1.50

  	
   

  
	
  2

  	
   

  	
  $

  	
  14,332.85

  	
   

  	
  $

  	
  1.55

  	
   

  
	
  3

  	
   

  	
  $

  	
  14,795.20

  	
   

  	
  $

  	
  1.60

  	
   

  
	
  4

  	
   

  	
  $

  	
  15,257.55

  	
   

  	
  $

  	
  1.65

  	
   

  
	
  5

  	
   

  	
  $

  	
  15,719.90

  	
   

  	
  $

  	
  1.70

  	
   

  
	
  6

  	
   

  	
  $

  	
  16,182.25

  	
   

  	
  $

  	
  1.75

  	
   

  
	
  7

  	
   

  	
  $

  	
  16,737.07

  	
   

  	
  $

  	
  1.81

  	
   

  
	
  8

  	
   

  	
  $

  	
  17,199.42

  	
   

  	
  $

  	
  1.86

  	
   

  
	
  9

  	
   

  	
  $

  	
  17,754.24

  	
   

  	
  $

  	
  1.92

  	
   

  
	
  10

  	
   

  	
  $

  	
  18,309.06

  	
   

  	
  $

  	
  1.98

  	
   

  

 

 

1

 

1.08         Tenant’s Percentage Share.  The term “Tenant’s Percentage Share” shall
mean zero percent (0.00%) with respect to increases in Property Taxes and
Operating Expenses (as such terms are hereinafter defined). Provided however,
Tenant shall be responsible for janitorial services for the Premises and shall
be responsible for any and all maintenance and repairs in connection with the
portable A/C units installed by Mirae Bank.

 

1.09         Security Deposit.  The term “Security Deposit” shall mean None ($0.00).

 

1.10         Tenant’s Permitted Use. The term “Tenant’s Permitted Use” shall
mean Retail Banking, General Office and no other use.

 

1.11         Business Hours.  The term “Business Hours” shall mean the
hours of 8:30 A.M. to 5:30 P.M., Monday through Friday (federal and state
holidays excepted). Holidays are defined as the following: New Years Day,
President’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day, and to the extent of utilities or services provided by union
members engaged at the Buildings, such other holidays observed by such unions.

 

1.12         Landlord’s Address For
Notices.  The
term “Landlord’s Address for Notices” shall mean 2140 West Olympic Boulevard, Suite 325,
Los Angeles, CA 90006 Attn: Property Manager, with a copy to 3424 Wilshire
Boulevard, Suite 1200, Los Angeles, California, 90010, Attn: Jason Cha, Esq.

 

1.13         Tenant’s Address for Notices.  The term “Tenant’s Address for Notices”
shall mean 3200 Wilshire Blvd., 7th Floor, Los Angeles, CA 90010 Attn: Chief
Operations Administrator.

 

1.14         Broker.  The term “Broker” shall mean Jamison
Services, Inc. for Landlord, and no other brokers.

 

1.15         Guarantor.  See Exhibit
“D.”

 

1.16         Tenant’s Parking Stalls. Tenant shall have the right to fifteen
(15) reserved parking spaces on the upper level of the Building’s parking
garage during the Lease Term and any extension at no additional charge. Tenant
guarantees that it shall rent thirty (30) unreserved parking spaces to be located
in either the upper or lower lot as Landlord may determine during the Lease
Term and any extension. Unreserved spaces shall be forty dollars ($40.00) each
during years 1-5 of the Lease Term and shall be fifty dollars ($50.00) each
during years 6-10 of the Lease Term. In addition, Landlord shall provide one
hour free parking to Tenant’s customers and visitors; thereafter, the
Building’s standard rates shall apply.

 

1.17         Signage. Tenant shall be entitled, at its sole cost and
expense but without any charge payable to Landlord, to identification signage outside
of the Premises on the floor on which the Premises are located. The location,
quality, design, style, lighting and  size
of such signage shall be consistent with the Landlord’s Building standard
signage program. In addition, Tenant, at its sole cost and expense, shall have
identification in the Building’s lobby directory to display Tenant’s name and
location in the Building.

 

1.18         Exclusive Use. Landlord agrees that no other portion of the building
shall be used or operated for Retail Banking Services during the Lease Term and
any extensions. Retail Banking Services shall include services customarily
associated with retails banks, including without limitation, the making of
loans, the acceptance of deposits, cashing checks, trust services, safe deposit
boxes, issuance of letters of credit, cash management and ATM’s.

 

1.19         Access to Premises. Tenant shall have access to the Premises
seven (7) days a week, twenty-four (24) hours a day.

 

1.20         Option to Extend. Tenant shall have two (2) options to
extend the Lease for an additional five (5) years each, as provided in the
Addendum.

 

 

2

 

1.21         Option to Terminate. Tenant shall have a one-time right to terminate
this Lease after the eighty fourth (84th)
month of the Lease Term, as provided in the Addendum.

 

1.22         ATM/Deposit Box. At no additional-charge, Tenant shall have the right
to install an externally accessible ATM and Deposit Box, subject to Landlord’s
approval which shall not be unreasonably withheld. Tenant shall be responsible
for the costs associated with the installation of the ATM and Deposit Box and
shall be responsible for its repair and maintenance.

 

ARTICLE II - PREMISES

 

2.01         Lease of Premises. Landlord hereby leases the Premises to
Tenant, and Tenant hereby leases the Premises from Landlord, upon all of the
terms, covenants and conditions contained in this Lease. On the Commencement
Date described herein, Landlord shall deliver the Premises to Tenant in
substantial conformance with the Work Letter Agreement attached hereto as Exhibit B.

 

2.02         Acceptance of Premises. Tenant acknowledges that Landlord has
not made any representation or warranty with respect to the condition of the
Premises or the Building or with respect to the suitability or fitness of
either for the conduct of Tenant’s Permitted Use or for any other purpose.
Prior to Tenant’s taking possession of the Premises, Landlord or its designee
and Tenant will walk the Premises for the purpose of reviewing the condition of
the Premises (and the condition of completion and workmanship of any tenant
improvements which Landlord is required to construct in the Premises pursuant
to this Lease); after such review,. Except as is expressly set forth in this Section 2.02
or the Work Letter Agreement attached hereto, if any, or as may be expressly
set forth in Suite Acceptance Letter, Tenant agrees to accept the Premises
in its “as is” said physical condition without any agreements, representations,
understandings or obligations on the part of Landlord to perform any
alterations, repairs or improvements (or to provide any allowance for same); provided
however, Landlord warrants that the Premises are in a condition: a) which
complies with applicable governmental building codes, including but not limited
to, the American with Disabilities Act; b) wherein all structural elements, the
HVAC system, imbedded plumbing and electrical, fire, life and safety system,
and any other Building system are fully operational, and c) free of any
hazardous materials.

 

ARTICLE III - TERM

 

3.01       Except as otherwise provided in this Lease,
the Lease Term shall be for the period described in Section 1.04 of this
Lease, commencing on the Commencement Date described in Section 1.05 of
this Lease and ending on the Expiration Date described in Section 1.06 of
this Lease; provided, however, that, if, for any reason, Landlord is unable to
deliver possession of the Premises on the date described in Section 1.05
of this Lease, Landlord shall not be liable for any damage caused thereby, nor
shall the Lease be void or voidable, but, rather, the Lease Term shall commence
upon, and the Commencement Date shall be the date that possession of the
Premises is so tendered to Tenant (except for Tenant caused delays which shall
not be deemed to delay commencement of the Lease Term), and, unless Landlord
elects otherwise, the Expiration Date described in Section 1.06 of this
Lease shall be extended by an equal number of days.

 

ARTICLE IV - RENTAL

 

4.01       Definitions.  As used herein,

 

(A)          “Base Year” shall mean calendar year            .

 

(B)           “Property Taxes” shall mean the aggregate amount of
all real estate taxes, assessments (whether they be general or special), sewer
rents and charges, transit taxes, taxes based upon the receipt of rent and any
other federal, state or local governmental charge, general, special, ordinary
or extraordinary (but not including

 

 

3

 

income or franchise taxes, capital stock, inheritance,
estate, gift, or any other taxes imposed upon or measured by Landlord’s gross
income or profits, unless the same shall be imposed in lieu of real estate
taxes or other ad valorem taxes), which Landlord shall pay or become obligated
to pay in connection with the Building, or any part thereof. Property Taxes
shall also include all fees and costs, including attorneys’ fees, appraisals
and consultants’ fees, incurred by Landlord in seeking to obtain a reassessment,
reduction of, or a limit on the increase in, any Property Taxes, regardless of
whether any reduction or limitation is obtained. Property Taxes for any
calendar year shall be Property Taxes which are due for payment or paid in such
year, rather than Property Taxes which are assessed or become a lien during
such year. Property Taxes shall include any tax, assessment, levy, imposition
or charge imposed upon Landlord and measured by or based in whole or in part
upon the Building or the rents or other income from the Building, to the extent
that such items would be payable if the Building was the only property of
Landlord subject to same and the income received by Landlord from the Building
was the only income of Landlord. Property Taxes shall also include any personal
property taxes imposed upon the furniture, fixtures, machinery, equipment,
apparatus, systems and appurtenances of Landlord used in connection with the
Building.

 

(C)           “Operating Expenses” shall mean all costs, fees,
disbursements and expenses paid or incurred by or on behalf of Landlord in the
operation, ownership, maintenance, insurance, management, replacement and
repair of the Building (excluding Property Taxes) including without limitation:

 

(i)            Premiums for property, earthquake, casualty, liability,
rent interruption or other types of insurance carried by Landlord.

 

(ii)           Salaries, wages and other amounts paid or payable for
personnel including the Building manager, superintendent, operation and
maintenance staff, and other employees of Landlord involved in the maintenance
and operation of the Building, including contributions and premiums towards
fringe benefits, unemployment, disability and worker’s compensation insurance,
pension plan contributions and similar premiums and contributions and the total
charges of any independent contractors or property managers engaged in the
operation, repair, care, maintenance and cleaning of any portion of the
Building.

 

(iii)          Cleaning expenses, including without limitation
janitorial services, window cleaning, and garbage and refuse removal.

 

(iv)          Landscaping expenses, including without limitation
irrigating, trimming, mowing, fertilizing, seeding, and replacing plants.

 

(v)           Heating, ventilating, air conditioning and
steam/utilities expenses, including fuel, gas, electricity, water, sewer,
telephone, and other services.

 

(vi)          Subject to the provisions of Section 4.01(C)(xii)
below, the cost of maintaining, operating, repairing and replacing components
of equipment or machinery, including without limitation heating, refrigeration,
ventilation, electrical, plumbing, mechanical, elevator, escalator, sprinklers,
fire/life safety, security and energy management systems, including service
contracts, maintenance contracts, supplies and parts.

 

(vii)         Other items of repair or maintenance of elements of
the Building.

 

(viii)        The costs of policing, security and supervision of the
Building.

 

(ix)           Fair market rental and other costs with respect to the
management office for the Building.

 

(x)            The cost of the rental of any machinery or equipment
and the cost of supplies used in the maintenance and operation of the Building.

 

(xi)           Audit fees and the cost of accounting services
incurred in the preparation of statements referred to in this Lease and
financial statements, and in the computation of the rents and charges payable
by tenants of the Building.

 

 

4

 

(xii)          Capital expenditures (a) made primarily to reduce Operating Expenses,
or to comply with any laws or other governmental requirements, or (b) for
replacements (as opposed to additions or new improvements) or non structural
items located in the common areas of the property required to keep such areas
in good condition; provided, all such permitted capital expenditures (together
with reasonable financing charges) shall be amortized for purposes of this
Lease over the shorter of (i) their useful lives, (ii) the period during which
the reasonably estimated savings in Operating Expenses equals the expenditures,
or (iii) three (3) years.

 

(xiii)         Legal fees and expenses.

 

(xiv)        Payments under any easement, operating agreement, declaration,
restrictive covenant, or instrument pertaining to the sharing of costs in any
planned development.

 

(xv)         A fee for the administration and management of the Building as
reasonably determined by Landlord from time to time.

 

Operating Expenses shall not include costs of
alteration of the premises of tenants of the Building, depreciation charges,
interest and principal payments on mortgages, ground rental payments, real
estate brokerage and leasing commissions, expenses incurred in enforcing
obligations of tenants of the Building, salaries and other compensation of
executive officers of the managing agent of the Building senior to the Building
manager, costs of any special service provided to any one tenant of the
Building but not to tenants of the Building generally, and costs of marketing
or advertising the Building.

 

(D)          If the Building does not have one hundred percent (100%) occupancy
during an entire calendar year, including the Base Year, then the variable cost
component of “Property Taxes” and “Operating Expenses” shall be equitably
adjusted so that the total amount of Property Taxes and Operating Expenses
equals the total amount which would have been paid or incurred by Landlord had
the Building been one hundred percent (100%) occupied for the entire calendar
year. In no event shall Landlord be entitled to receive from Tenant and any
other tenants in the Building an aggregate amount in excess of actual Property
Taxes and Operating Expenses as a result of the foregoing provisions.

 

4.02         Base Rent.

 

(A)          During the Lease Term, Tenant shall pay
to Landlord as rental for the Premises the Base Rent described in Section 1.07
above, subject to the following annual adjustments (herein called the “Rent
Adjustments”):

 

(B)           Annual Adjustments of Base Rent. (see Section 1.07)

 

(a)           Tax and Operating Expense Adjustment. During each calendar year, the
Base Rent payable by Tenant to Landlord, shall be increased by (collectively,
the “Tax and Operating Expense Adjustment”): (i) Tenant’s Percentage Share of
the dollar increase, if any, in Property Taxes for such year over Property
Taxes for the Base Year; and (ii) Tenant’s Percentage Share of the dollar
increase, if any, in any category of Operating Expenses paid or incurred by
Landlord during such year over the respective category of Operating Expenses
paid or incurred by Landlord during the Base Year. A decrease in Property Taxes
or any category of Operating Expenses below the Base Year amounts shall not
decrease the amount of the Base Rent due hereunder or give rise to a credit in
favor of Tenant.

 

(b)           CPI Adjustment. During each calendar year, the Base Rent payable by
Tenant to Landlord, shall be adjusted to reflect increases in the Consumer
Price Index and follows:

 

(i)            Definitions. The following terms shall have the following meanings:

 

(A)          “Index” means the “Consumer Price Index All Urban Consumers Los
Angeles/Long Beach/Anaheim Metropolitan Area” compiled by the U.S. Department
of Labor, Bureau of Labor

 

 

5

 

Statistics, (1982-84-100). If a substantial change is
made in the Index, the revised Index shall be used, subject to such adjustments
as landlord may reasonably deem appropriate in order to make the revised Index
comparable to the Prior Index If the Bureau of Labor Statistics ceases to
publish the Index, then the successor or most nearly comparable index, as
reasonably determined by Landlord, shall be used, subject to such adjustments
as landlord may reasonably deem appropriate in order to make the new index
comparable to the Index.

 

(B)           “CPI Adjustment Date” means the date of the
Commencement Date of the Year in which the first anniversary of the
Commencement Date falls and that same month of commencement date of every year
thereafter.

 

(C)           “CPI Base” means the initial Base Rent amount set
forth in Section 4.02(A).

 

(ii)           Computation of Adjustment. Effective as of each CPI
Adjustment Date, the Base Rent shall be adjusted to an amount to be determined
by Multiplying the CPI Base by a fraction, the numerator of which shall be the
Index for the calendar month in which the Commencement Date occurs and the
denominator being the Index from the calendar month most recently published as
of the CPI Adjustment Date. Such fraction shall not exceed, for any CPI
Adjustment Date, an amount in excess of one hundred percent, multiplied by the
number of CPI Adjustment Dated that have then occurred (including the present
one). The Base Rent shall never be reduced as result of an adjustment pursuant
to this paragraph. Landlord shall give Tenant written notice indicating the
adjusted Base Rent and the method of computation, and, on or before the first
day of the first calendar month following Tenant’s receipt of such written
notice, and Tenant shall within thirty (30) days after notice pay to Landlord
an amount equal to the underpayment of Base Rent by Tenant for the period from
the CPI Adjustment Date until such date.

 

4.03         Tax and Operating Expense Adjustment Procedure;
Estimates.  The
Tax and Operating Expense Adjustment specified in Section 4.02(B)(a) shall be
determined and paid as follows:

 

(A)          During each calendar year subsequent to the Base Year,
Landlord shall give Tenant written notice of its estimate of any increased
amounts payable under Section 4.02(B)(a) for that calendar year. On or before
the first day of each calendar month during the calendar year, Tenant shall pay
to Landlord one twelfth (1/12th) of such estimated amounts; provided, however,
that, not more often than quarterly, Landlord may, by written notice to Tenant,
revise its estimate for such year, and subsequent payments by Tenant for such
year shall be based upon such revised estimate.

 

(B)           Within one hundred twenty (120) days after the close
of each calendar year or as soon thereafter as is practicable, Landlord shall
deliver to Tenant a statement of that year’s Property Taxes and Operating
Expenses, and the actual Tax and Operating Expense Adjustment to be made pursuant
to Section 4.02(B)(a) for such calendar year, as determined by Landlord (the
“Landlord’s Statement”) and such Landlord’s Statement shall be binding upon
Tenant, except as provided in Section 4.04 below. If the amount of the actual
Tax and Operating Expense Adjustment is more than the estimated payments for
such calendar year made by Tenant, Tenant shall pay the deficiency to Landlord
upon receipt of Landlord’s Statement. If the amount of the actual Tax and
Operating Expense Adjustment is less than the estimated payments for such
calendar year made by Tenant, any excess shall be credited against Rent (as
hereinafter defined) next payable by Tenant under this Lease or, if the Lease
Term has expired, any excess shall be paid to Tenant. No delay in providing the
statement described in this subparagraph (B) shall act as a waiver of
Landlord’s right to payments under Section 4.02(B)(a) above.

 

(C)           If this Lease shall terminate on a day other than the
end of a calendar year, the amount of the Tax and Operating Expense Adjustment
to be paid pursuant to Section 4.02(B)(a) that is applicable to the calendar
year in which such termination occurs shall be prorated on the basis of the
number of days from January 1 of the calendar year to the termination date
bears to 365. The termination of this Lease shall not affect the obligations of
Landlord and Tenant pursuant to Section 4.03(B) to be performed after such
termination.

 

4.04         Review of Landlord’s Statement. Provided that Tenant is not then in
default beyond any applicable cure period of its obligations to pay Base Rent,
additional rent described in Section 4.02(B), or any other payments required to
be made by it under this Lease and provided further that Tenant strictly
complies with the 

 

 

6

 

provisions of this
Section 4.04, Tenant shall have the right, once each calendar year, to
reasonably review supporting data for any portion of a Landlord’s Statement
(provided, however, Tenant may not have an audit right to all documentation
relating to Building operations as this would far exceed the relevant
information necessary to properly document a pass through billing statement,
but real estate tax statements, and information on utilities, repairs,
maintenance and insurance will be available), in accordance with the following
procedure:

 

(A)
Tenant shall, within ten (10) business days after any such Landlord's Statement
is delivered, deliver a written notice to Landlord specifying the portions of
the Landlord's Statement that are claimed to be incorrect, and Tenant shall
simultaneously pay to Landlord all amounts due from Tenant to Landlord as
specified in the Landlord's Statement. Except as expressly set forth in
subsection (C) below, in no event shall Tenant be entitled to withhold, deduct,
or offset any monetary obligation of Tenant to Landlord under the Lease
(including, without limitation, Tenant's obligation to make all payments of
Base Rent and all payments of Tenant's Tax and Operating Expense Adjustment) pending
the completion of and regardless of the results of any review of records under
this Section 4.04. The right of Tenant under this Section 4.04 may only be
exercised once for any Landlord's Statement, and if Tenant fails to meet any of
the above conditions as a prerequisite to the exercise of such right, the right
of Tenant under this Section 4.04 for a particular Landlord's Statement shall
be deemed waived.

 

(B) Tenant acknowledges that Landlord maintains its
records for the Building at Landlord's manager's corporate offices presently
located at the address set forth in Section 1.12 and Tenant agrees that any
review of records under this Section 4.04 shall be at the sole expense of
Tenant and shall be conducted by an independent firm of certified public
accountants of national standing that is not being compensated on a contingency
fee basis. Tenant acknowledges and agrees that any records reviewed under this
Section 4.04 constitute confidential information of Landlord, which shall not
be disclosed to anyone other than the accountants performing the review and the principals of Tenant who
receive the results of the review. If requested by Landlord, Tenant
shall require its employees or agents inspecting Landlord's books and records
to sign Landlord's confidentiality agreement as a condition of Landlord making
Landlord's relevant accounting records available to them. The disclosure of
such information to any other person,
whether or not caused by the conduct of Tenant, shall constitute a material
breach of this Lease.

 

(C) Any errors disclosed by the review shall be
promptly corrected by Landlord, provided, however, that if Landlord disagrees
with any such claimed errors, Landlord shall have the right to cause another review to be made by an
independent firm of certified public accountants of national standing. In the
event of a disagreement between the two accounting firms, the review that
discloses the least amount of deviation from the Landlord's Statement shall be
deemed to be correct. In the event that the results of the review of records (talking
into account, if applicable, the results of any additional review caused by
Landlord) reveal that Tenant has overpaid obligations for a preceding
period, the amount of such overpayment shall be credited against Tenant's subsequent
installment obligations to pay the estimated Tax and Operating Expense
Adjustment. In the event that such results show that Tenant has underpaid its
obligations for a preceding period, Tenant shall be liable for Landlord's
actual accounting fees, and the amount of
such underpayment shall be paid by Tenant to Landlord with the next succeeding installment
obligation of estimated Tax and Operating Expense Adjustment.

 

4.05         Payment. Concurrently with the execution hereof,
Tenant shall pay Landlord Base Rent for the first calendar month of the Lease
Term. Thereafter the Base Rent described in Section 1.07, as adjusted in
accordance with Section 4.02, shall be payable in advance on the First (1st) Day of each calendar month. If the Commencement Date is other than
the first day of a calendar month, the prepaid Base Rent for such partial month
shall be prorated in the proportion that the number of days this Lease is in
effect during such partial month bears to the total number of days in the
calendar month. All Rent, and all other amounts payable to Landlord by Tenant
pursuant to the provisions of this Lease, shall be paid to Landlord, without
notice, demand, abatement, deduction or offset, in lawful money of the United
States at Landlord’s office in the Building or to such other person or at such
other place as Landlord may designate from time to time by written notice given
to Tenant. No payment by Tenant or receipt by Landlord of a lesser amount than
the correct Rent due hereunder shall be deemed to be other than a payment on
account; nor shall any endorsement or statement on any check or any letter
accompanying any check or payment be deemed to effect or evidence an accord and
satisfaction; and Landlord may accept such check or payment without prejudice to
Landlord’s right to recover the balance or pursue any other remedy in this
Lease or at law or in equity provided.

 

 

7

 

4.06         Late Charge; Interest. Tenant acknowledges that the late
payment of Base Rent or any other amounts payable by Tenant to Landlord
hereunder (all of which shall constitute-additional rental to the same extent
as Base Rent) will cause Landlord to incur administrative costs and other
damages, the exact amount of which would be impracticable or extremely
difficult to ascertain. Landlord and Tenant agree that if Landlord does not
receive any such payment on or before five (5) days after the date the
payment is due, Tenant shall pay to Landlord, as additional rent, (a) a
late charge equal to five percent (5%)
of the overdue amount to cover such additional administrative costs; and (b) interest
on the delinquent amounts at the lesser of the maximum rate permitted by law if
any or twelve percent (12%) per annum from
the date due to the date paid.

 

4.07         Additional Rent. For purposes of this Lease, all amounts
payable by Tenant to Landlord pursuant to this Lease, whether or not
denominated as such, shall constitute Base Rent. Any amounts due Landlord shall
sometimes be referred to in this Lease as “Rent”.

 

4.08         Additional Taxes. Notwithstanding anything in Section 4.01(B) to
the contrary, Tenant shall reimburse Landlord upon demand for any and all taxes
payable by or imposed upon Landlord upon or with respect to: any fixtures or
personal properly located in the Premises; any leasehold improvements made in
or to the Premises by or for Tenant;

 

ARTICLE V - SECURITY DEPOSIT

 

5.01         Upon the execution of this Lease, Tenant shall deposit
with Landlord the Security Deposit described in Section 1.09 above. The
Security Deposit is made by Tenant to secure the faithful performance of all
the terms, covenants and conditions of this Lease to be performed by Tenant. If
Tenant shall default with respect to any covenant or provision hereof, Landlord
may use, apply or retain all or any portion of the Security Deposit to cure
such default or to compensate Landlord for any loss or damage which Landlord
may suffer thereby. If Landlord so uses or applies all or any portion of the
Security Deposit, Tenant shall immediately upon written demand deposit cash
with Landlord in an amount sufficient to restore the Security Deposit to the
full amount hereinabove stated. Landlord shall not be required to keep the
Security Deposit separate from its general accounts and Tenant shall not be
entitled to interest on the Security Deposit. Tenant expressly agrees to waive
the protections afforded under California Civil Code Section 1950.7, thus
allowing Landlord to apply the Security Deposit towards future rents owing in
the case of Tenant’s default. Within thirty (30) days after the expiration of
the Lease Term and the vacation of the Premises by Tenant, the Security
Deposit, or such part as has not been applied to cure the default, shall be
returned to Tenant.

 

ARTICLE VI - USE OF PREMISES

 

6.01         Tenants Permitted Use. Tenant shall use the Premises only for
Tenant’s Permitted Use as set forth in Section 1.10 above and shall not
use or permit the Premises to be used for any other purpose. Tenant shall, at
its sole cost and expense, obtain all governmental licenses and permits
required to allow Tenant to conduct “Tenant’s Permitted Use. Landlord disclaims
any warranty that the Premises are suitable for Tenant’s use and Tenant acknowledges
that it has had a full opportunity to make its own determination in this
regard.

 

6.02         Compliance With Laws and Other Requirements.

 

(A)          Tenant shall cause the Premises to comply
in all material respects with all laws, ordinances, regulations and directives
of any governmental authority having jurisdiction including, without
limitation, any certificate of occupancy and any law, ordinance, regulation,
covenant, condition or restriction affecting the Building or the Premises which
in the future may become applicable to the Premises (collectively “Applicable
Laws”).

 

(B)           Tenant shall not use the Premises, or
permit the Premises to be used, in any manner which: (a) violates any
Applicable Law; (b) causes or is reasonably likely to cause damage to the
Building or the Premises; (c) violates a requirement or condition of any
fire and extended insurance policy covering the Building and/or the Premises,
or increases the cost of such policy; (d) constitutes or is reasonably likely
to constitute a nuisance,

 

 

8

 

annoyance or
inconvenience to other tenants or occupants of the Building or its equipment,
facilities or systems; (e) interferes with, or is reasonably likely to
interfere with, the transmission or reception of microwave, television, radio,
telephone or other communication signals by antennae or other facilities
located in the Building; or (f) violates the Rules and Regulations
described in Article XIX.

 

(C)           Landlord shall cause the Building and
common areas to comply with Applicable Laws.

 

6.03         Hazardous Materials.

 

(A)          No Hazardous Materials, as defined
herein, shall be Handled, as also defined herein, upon, about, above or beneath
the Premises or any portion of the Building by or on behalf of Tenant, its
subtenants or its assignees, or their respective contractors, clients,
officers, directors, employees, agents, or invitees. Any such Hazardous
Materials so Handled shall be known as Tenant’s Hazardous Materials.
Notwithstanding the foregoing, normal quantities of Tenant’s Hazardous
Materials customarily used in the conduct of general administrative and
executive office activities (e.g., copier fluids and cleaning supplies) may be
Handled at the Premises without Landlord’s prior written consent. Tenant’s
Hazardous Materials shall be Handled at all times in compliance with the
manufacturer’s instructions therefor and all applicable Environmental Laws, as
defined herein.

 

(B)           Notwithstanding the obligation of Tenant
to indemnify Landlord pursuant to this Lease, Tenant shall, at its sole cost
and expense, promptly take all actions required by any Regulatory Authority, as
defined herein, or necessary for Landlord to make full economic use of the
Premises or any portion of the Building, which requirements or necessity arises
from the Handling of Tenant’s Hazardous Materials upon, about, above or beneath
the Premises or any portion of the Building. Such actions shall include, but
not be limited to, the investigation of the environmental condition of the
Premises or any portion of the Building, the preparation of any feasibility
studies or reports and the performance of any cleanup, remedial, removal or
restoration work. Tenant shall take all actions necessary to restore the
Premises or any portion of the Building to the condition existing prior to the
introduction of Tenant’s Hazardous Materials, notwithstanding any less
stringent standards or remediation allowable under applicable Environmental
Laws. Tenant shall nevertheless obtain Landlord’s written approval prior to
undertaking any actions required by this Section, which approval shall not be
unreasonably withheld so long as such actions would not potentially have a
material adverse long-term or short-term effect on the Premises or any portion
of the Building.

 

(C)           Landlord Indemnification. Landlord and
its successors and assigns shall indemnify, defend, reimburse and hold Tenant,
its agents, employees and lenders, harmless from and against any and damages,
liabilities, judgments, claims, expenses, penalties, and reasonable out-of-pocket
attorneys’ and consultants’ fees including the cost of remediation, arising out
of or involving any Hazardous Substances on the Premises prior to the
Commencement Date or which arise out of or involved the gross negligence or
willful misconduct of Landlord, its agents or employees. Landlord’s obligations
shall include, but not be limited to, the cost of investigation, removal,
remediation, restoration and/or abatement, and shall survive the expiration or
termination of this Lease.

 

(D)          Investigations and Remediations. Landlord
shall retain the responsibility and pay for any investigations or remediation
measures required by governmental entities having jurisdiction with respect to
the existence of Hazardous Substances on the Premises prior to the Commencement
Date, unless such remediation measure is required as a result of Tenant’s use
of the Premises, in which event Tenant shall be responsible for such payment.
Tenant shall cooperate fully in any such activities at the request of Landlord,
including allowing Landlord and Landlord’s agents to have reasonable access to
the Premises at reasonable times in order to carry out Landlord’s investigative
and remedial responsibilities; it being understood that reasonable prior
written notice of such access must have been provided to Tenant and that Tenant
shall have the right to have its employee accompany Landlord and Landlord’s
agents.

 

(E)           Tenant agrees to execute affidavits,
representations, and the like from time to time at Landlord’s request stating
Tenant’s best knowledge and belief regarding the presence of Hazardous
Materials on the Premises.

 

 

9

 

(F)           “Environmental Laws” means and includes
all now and hereafter existing statutes, laws, ordinances, codes, regulations,
rules, rulings, orders, decrees, directives, policies and requirements by any
Regulatory Authority regulating, relating to, or imposing liability or
standards of conduct concerning public health and safety or the environment.

 

(G)           “Hazardous Materials” means: (a) any
material or substance: (i) which is defined or becomes defined as a
“hazardous substance,” “hazardous waste,” “infectious waste,” “chemical mixture
or substance,” or “air pollutant” under Environmental Laws; (ii) containing
petroleum, crude oil or any fraction thereof; (iii) containing
polychlorinated biphenyls (PCB’s); (iv) containing asbestos; (v) which is
radioactive; (vi) which is infectious; or (b) any other material or
substance displaying toxic, reactive, ignitable or corrosive characteristics,
as all such terms are used in their broadest sense, and are defined, or become
defined by Environmental Laws; or (c) materials which cause a nuisance
upon or waste to the Premises or any portion of the Building.

 

(H)          “Handle,” “handle,” “Handled,” “handled,”
“Handling,” or “handling” shall mean any installation, handling, generation,
storage, treatment, use, disposal, discharge, release, manufacture, refinement,
presence, migration, emission, abatement, removal, transportation, or any other
activity of any type in connection with or involving Hazardous Materials.

 

(I)            “Regulatory Authority” shall mean any
federal, state or local governmental agency, commission, board or political
subdivision.

 

(J)            Tenant acknowledges that the Landlord has
advised Tenant that the Building contains, or is likely to contain, materials
which contain asbestos. Asbestos may be found in all building materials
excluding those materials made from wood, glass, metal, rubber, and plastic. If
Tenant undertakes any alterations, additions, or improvements to the  Premises, Tenant shall undertake the alterations,
additions, or improvements in a manner that avoids disturbing any materials
which may contain-asbestos. If materials which may contain asbestos are likely
to be disturbed in the course of such work Tenant shall remove or encapsulate
the materials in accordance with an asbestos abatement plan approved by
Landlord which will not be unreasonably withheld or delayed and otherwise in accordance
with all applicable laws and regulations. Tenant also acknowledges that
materials which contain asbestos do not pose a significant risk of creating
exposures which exceed the Permissible Exposure Limits unless they are
improperly disturbed, damaged, or deteriorated. Tenant shall promptly report to
Landlord damage or deterioration of materials which may contain asbestos.

 

ARTICLE VII - UTILITIES AND SERVICES

 

7.01         Building Services. As long as Tenant is not in monetary default under
this Lease, Landlord agrees to furnish or cause to be furnished to the Premises
the following utilities and services, subject to the conditions and standards
set forth herein:

 

(A)          Non-attended automatic elevator service
(if the Building has such equipment serving the Premises), in common with
Landlord and other tenants and occupants and their agents and invitees.

 

(B)           During Business Hours, as defined in Section 1.11
of this Lease, such air conditioning, heating and ventilation as (“HVAC”), in
Landlord’s reasonable judgment, are required for the comfortable use and
occupancy of the Premises. Landlord may make available to Tenant heating,
ventilation or air conditioning in excess of that which Landlord shall be
required to provide hereunder. If Tenant needs HVAC during non-Business Hours,
Tenant shall provide no less than forty-eight (48) hours’ prior notice to
Landlord and pay as additional rent the cost of after-hour HVAC at the
Building’s prevailing rates, subject to change.

 

(C)           Water for rest room purposes.

 

(D)          If the Premises are not used exclusively
as offices, Landlord, at Landlord’s sole discretion, may require that the
Premises be kept clean and in order by Tenant, at Tenant’s expense, to the
satisfaction of Landlord and by persons approved by Landlord; and, in all
events, Tenant shall pay to Landlord the cost of removal

 

 

10

 

of Tenant’s refuse and rubbish, to the extent that the same exceeds the
refuse and rubbish attendant to norrnal office usage.

 

(E)           At all reasonable times, electric current of not less
than 3.5 watts per square foot for building standard lighting and fractional
horsepower office machines; provided, however, that (i) without Landlord’s
consent, Tenant shall not install, or permit the installation, in the Premises
of any computers, word processors, electronic data processing equipment or
other type of equipment or machines which will increase Tenant’s use of
electric current in excess of that which Landlord is obligated to provide
hereunder (provided, however, that the foregoing shall not preclude the use of
personal computers or similar office equipment); (ii) if Tenant shall
require electric current which may disrupt the provision of electrical service
to other tenants, Landlord may refuse to grant its consent or may condition its
consent upon Tenant’s payment of the cost of installing and providing any
additional facilities required to furnish such excess power to the Premises and
upon the installation in the Premises of electric current meters to measure the
amount of electric current consumed, in which latter event Tenant shall pay for
the cost of such meter(s) and the cost of installation, maintenance and
repair thereof, as well as for all excess electric current consumed at the
rates charged by the applicable local public utility, plus a reasonable amount
to cover the additional expenses incurred by Landlord in keeping account of the
electric current so consumed; and (iii) if Tenant’s increased electrical requirements
will materially affect the temperature level in the Premises or the Building,
Landlord’s consent may be conditioned upon Tenant’s requirement to pay such
amounts as will be incurred by Landlord to install and operate any machinery or
equipment necessary to restore the temperature level to that otherwise required
to be provided by Landlord, including but not limited to the cost of
modifications to the air conditioning system. Landlord shall not, in any way,
be liable or responsible to Tenant for any loss or damage or expense which
Tenant may incur or sustain if, for any reasons beyond Landlord’s reasonable
control, either the quantity or character of electric service is changed or is
no longer available or suitable for Tenant’s requirements. Tenant covenants
that at all times its use of electric current shall never exceed the capacity
of the feeders, risers or electrical installations of the Building. If
submetering of electricity in the Building will not be permitted under future
laws or regulations, the Rent will then be equitably and periodically adjusted
to include an additional payment to Landlord reflecting the cost to Landlord
for furnishing excess electricity to Tenant in the Premises, so long as
Landlord is able to provide a reasonable accounting of Tenant’s excess power use.

 

Any amounts which
Tenant is required to pay to Landlord pursuant to this Section 7.01 shall
be payable upon demand by Landlord and shall constitute additional rent.

 

7.02         Interruption of Services. Landlord shall not be liable for any
failure to furnish, stoppage of, or interruption in furnishing any of the
services or utilities described in Section 7.01, when such failure is caused by
accident, breakage, repairs, strikes, lockouts, labor disputes, labor
disturbances, governmental regulation, civil disturbances, acts of war,
moratorium or other governmental action, or any other cause beyond Landlord’s
reasonable control, and, in such event, Tenant shall not be entitled to any
damages nor shall any failure or interruption abate or suspend Tenant’s obligation
to pay Base Rent and additional rent required under this Lease or constitute or
be construed as a constructive or other eviction of Tenant, so long as Landlord
uses commercially reasonable efforts to reestablish such services or utilities.
Further, in the event any governmental authority or public utility promulgates
or revises any law, ordinance, rule or regulation, or issues mandatory
controls or voluntary controls relating to the use or conservation of energy,
water, gas, light or electricity, the reduction of automobile or other
emissions, or the provision of any other utility or service, Landlord may take
any reasonably appropriate action to comply with such law, ordinance, rule,
regulation, mandatory control or voluntary guideline and Tenant’s obligations
hereunder shall not be affected by any such action of Landlord. The parties
acknowledge that safety and security devices, services and programs provided by
Landlord, if any, while intended to deter crime and ensure safety, may not in
given instances prevent theft or other criminal acts, or ensure safety of
persons or property. The risk that any safety or security device, service or
program may not be effective, or may malfunction, or be circumvented by a
criminal, is assumed by Tenant with respect to Tenant’s property and interests,
and Tenant shall obtain insurance coverage to the extent Tenant desires
protection against such criminal acts and other losses, as further described in
this Lease. Tenant agrees to cooperate in any reasonable safety or security
program developed by Landlord or required by Law.

 

 

11

 

ARTICLE VIII - MAINTENANCE AND REPAIRS

 

8.01                               Landlord’s Obligations. Except as provided in Sections 8.02 and
8.03 below, Landlord shall maintain the Building in reasonable order and repair
throughout the Lease Term; provided, however, that Landlord shall not be liable
for any failure to make any repairs or to perform any maintenance unless such
failure shall persist for an unreasonable time after written notice of the need
for such repairs or maintenance is given to Landlord by Tenant. Except as
provided in Article XI, there shall be no abatement of Rent, nor shall
there be any liability of Landlord, by reason of any injury or inconvenience
to, or interference with, Tenant’s business or operations arising from the
making of, or failure to make, any maintenance or repairs in or to any portion
of the Building, unless caused by the negligence or willful misconduct of
Landlord, its agents, employees or contractors.

 

8.02                               Tenant’s Obligations. During the Lease Term, Tenant shall, at
its sole cost and expense, maintain the Premises in good order and repair
(including, without limitation, the carpet, wall-covering, doors, plumbing and
other fixtures, equipment, alterations and improvements, whether installed by
Landlord or Tenant). Further, Tenant shall be responsible for, and upon demand
by Landlord shall promptly reimburse Landlord for, any damage to any portion of
the Building or the Premises caused by (a) Tenant’s activities in the Building
or the Premises; (b) the performance or existence of any alterations,
additions or improvements made by Tenant in or to the Premises; (c) the
installation, use, operation or movement of Tenant’s property in or about the Building
or the Premises; or (d) any act or omission by Tenant or its officers,
partners, employees, agents, contractors or invitees.

 

8.03                                Landlord’s Rights. Landlord and its contractors shall have
the right, at all reasonable times and upon prior oral or telephonic notice to
Tenant at the Premises, other than in the case of any emergency in which case no
notice shall be required, to enter upon the Premises to make any repairs to the
Premises or the Building reasonably required or deemed reasonably necessary by
Landlord and to erect such equipment, including scaffolding, as is reasonably
necessary to effect such repairs. Tenant shall have the right to accompany all
such persons in non-emergency circumstances.

 

ARTICLE IX - ALTERATIONS, ADDITIONS AND IMPROVEMENTS

 

9.01         Landlord’s Consent;
Conditions.
Tenant shall not make or permit to be made any alterations, additions, or
improvements in or to the Premises (“Alterations”) without the prior written consent
of Landlord, which consent, with respect to non-structural alterations, shall
not be unreasonably withheld. Landlord may impose as a condition to making any
Alterations such requirements as Landlord in its reasonable discretion deems
necessary or desirable including without limitation: Tenant’s submission to
Landlord, for Landlord’s prior written approval, of all plans and
specifications relating to the Alterations; Landlord’s prior written approval of
the time or times when the Alterations are to be performed; Landlord’s prior written
approval of the contractors and subcontractors performing work in connection
with the Alterations; Tenant’s receipt of all necessary permits and approvals
from all governmental authorities having jurisdiction over the Premises prior
to the construction of the Alterations; Tenant’s delivery to Landlord of such
bonds and insurance as Landlord shall reasonably require; and Tenant’s payment
to Landlord of all costs and expenses incurred by Landlord because of Tenant’s
Alterations which are structural in nature, including but not limited to costs
incurred in reviewing the plans and specifications for, and the progress of,
the Alterations. Tenant is required to provide Landlord written notice of
whether the Alterations include the Handling of any Hazardous Materials and
whether these materials are of a customary and typical nature for industry
practices. Upon completion of the Alterations, Tenant shall provide Landlord
with copies of as built plans. Neither the approval by Landlord of plans and
specifications relating to any Alterations nor Landlord’s supervision or
monitoring of any Alterations shall constitute any warranty by Landlord to
Tenant of the adequacy of the design for Tenant’s intended use or the proper
performance of the Alterations.

 

9.02         Performance of Alterations
Work. All
work relating to the Alterations shall be performed in compliance with the
plans and specifications approved by Landlord, all applicable laws, ordinances,
rules, regulations and directives of all governmental authorities having
jurisdiction (including without limitation Title 24 of the California
Administrative Code) and the requirements of all carriers of insurance on the
Premises and the Building, the Board of Underwriters, Fire Rating Bureau, or
similar organization. All work shall be performed in a diligent, first class
manner and so as not to unreasonably interfere with any other tenants or
occupants of the

 

 

12

 

Building. All
reasonable out of pocket costs incurred by Landlord relating to the Alterations
shall be payable to Landlord by Tenant as additional rent upon demand including
such support documents as are reasonably required by Tenant. No asbestos-containing
materials shall be used or incorporated in the Alterations. No lead-containing
surfacing material, solder, or other construction materials or fixtures where
the presence of lead might create a condition of exposure not in compliance
with Environmental Laws shall be incorporated in the Alterations.

 

9.03         Liens. Tenant shall pay when due all costs for
work performed and materials supplied to the Premises by Tenant and its agents.
Tenant shall keep Landlord, the Premises and the Building free from all liens,
stop notices and violation notices relating to the Alterations or any other
work performed for, materials furnished to or obligations incurred by or for
Tenant and Tenant shall protect, indemnify, hold harmless and defend Landlord,
the Premises and the Building of and from any and all loss, cost, damage,
liability and expense, including attorneys’ fees, arising out of or related to
any such liens or notices. Further, Tenant shall give Landlord not less then
seven (7) business days prior written notice before commencing any Alterations
in or about the Premises to permit Landlord to post appropriate notices of non-responsibility.
Tenant shall also secure, prior to commencing any Alterations, at Tenant’s sole
expense, a completion and lien indemnity bond satisfactory to Landlord for such
work. During the progress of such work, Tenant shall, upon Landlord’s request,
furnish Landlord with sworn contractor’s statements and lien waivers covering
all work theretofore performed. Tenant shall satisfy or otherwise discharge all
liens, stop notices or other claims or encumbrances arising as a result of any Alterations
or any other work performed for Tenant within ten (10) days after Landlord
notifies Tenant in writing that any such lien, stop notice, claim or
encumbrance has been filed. If Tenant fails to pay and remove such lien, claim
or encumbrance within such ten (10) days, Landlord, at its election, may
pay and satisfy the same and in such event the sums so paid by Landlord, with
interest from the date of payment at the rate set forth in Section 4.06 hereof
for amounts owed Landlord by Tenant shall be deemed to be additional rent due
and payable by Tenant at once without notice or demand.

 

9.04         Lease Termination.  Except as provided in this
Section 9.04, upon expiration or earlier termination of this Lease Tenant
shall surrender the Premises to Landlord in the same condition as existed on
the date Tenant first occupied the Premises, (whether pursuant to this Lease or
an earlier lease), subject to reasonable wear and tear. All Alterations shall become
a part of the Premises and shall become the property of Landlord upon the
expiration or earlier termination of this Lease, unless Landlord shall, by
written notice given to Tenant, require Tenant to remove some or all of
Tenant’s Alterations, in which event Tenant shall promptly remove the
designated Alterations and shall promptly repair any resulting damage, all at
Tenant’s sole expense. All business and trade fixtures, machinery and
equipment, furniture, movable partitions and items of personal property owned
by Tenant or installed by Tenant at its expense in the Premises shall be and
remain the property of Tenant; upon the expiration or earlier termination of
this Lease, Tenant shall, at its sole expense, remove all such items and repair
any damage to the Premises or the Building caused by such removal. If Tenant
fails to remove any such items (“Abandoned Items”) or repair such damage
promptly after the expiration or earlier termination of the Lease, Landlord
may, but need not, do so with no liability to Tenant, and Tenant shall pay
Landlord the cost thereof upon written demand, including such support documents
as are reasonably required by Tenant. Tenant agrees to indemnify Landlord for
any and all loss, cost, damage, liability or expense as incurred (including but
not limited to reasonable out of pocket attorneys’ fees and legal costs)
arising out of or related to any claim, suit or judgment brought by or in favor
of any person or persons for damage, loss or expense which arises out of, is
occasioned by or is in any way attributable to the Abandoned Items. Notwithstanding
the foregoing to the contrary, in the event that Landlord gives its consent, pursuant
to the provisions of Section 9.01 of this Lease, to allow Tenant to make
an Alteration in the Premises, Landlord agrees, upon Tenant’s written request,
to notify Tenant in writing at the time of the giving of such consent whether
Landlord will require Tenant, at Tenant’s cost, to remove such Alteration at
the end of the Lease Term.

 

ARTICLE X - INDEMNIFICATION AND
INSURANCE

 

10.01       Indemnification.

 

(A)          Tenant agrees to protect, indemnify, hold harmless and
defend Landlord and any Mortgagee (except outside of Tenant’s premises), as
defined herein, and each of their respective partners, directors, officers,
agents and employees, successors and assigns, (except to the extent of the
losses described below are caused by the gross negligence of Landlord, its
agents and employees), from and against:

 

 

13

 

(i)            any and all loss, cost, damage, liability
or expense as incurred (including but not limited to reasonable attorneys’ fees
and legal costs) arising out of or related to any claim, suit or judgment
brought by or in favor of any person or persons for damage, loss or expense due
to, but not limited to, bodily injury, including death, or property damage
sustained by such person or persons which arises out of, is occasioned by or is
in any way attributable to the use or occupancy of the Premises or any portion of
the Building by Tenant or the acts or omission of Tenant or its agents,
employees, contractors, clients, invitees or subtenants except that caused by
the negligence or willful misconduct of Landlord or its agents or employees.
Such loss or damage shall include, but not be limited to, any injury or damage
to, or death of, Landlord’s employees or agents or damage to the Premises or
any portion of the Building.

 

(ii)           any and all environmental damages which
arise from: (i) the Handling of any Tenant’s Hazardous Materials, as defined in
Section 6.03 or (ii) the breach of any of the provisions of this Lease. For the
purpose of this Lease, “environmental damages” shall mean (a) all claims,
judgments, damages, penalties, fines, costs, liabilities, and losses (including
without limitation, diminution in the value of the Premises or any portion of
the Building, damages for the loss of or restriction on use of rentable or
usable space or of any amenity of the Premises or any portion of the Building,
and from any adverse impact on Landlord’s marketing of space); (b) all
reasonable sums paid for settlement of claims, attorneys’ fees, consultants’
fees and experts’ fees; and (c) all costs incurred by Landlord in
connection with investigation or remediation relating to the Handling of
Tenant’s Hazardous Materials, whether or not required by Environmental Laws,
necessary for Landlord to make full economic use of the Premises or any portion
of the Building, or otherwise required under this Lease. To the extent that
Landlord is held strictly liable by a court or other governmental agency of
competent jurisdiction under any Environmental Laws, Tenant’s obligation to
Landlord and the other indemnities under the foregoing indemnification shall
likewise be without regard to fault on Tenant’s part with respect to the
violation of any Environmental Law which results in liability to the indemnitee.
Tenant’s obligations and liabilities pursuant to this Section 10.01 shall
survive the expiration or earlier termination of this Lease.

 

(B)           Landlord agrees to protect, indemnify,
hold harmless and defend Tenant and each of its partners, directors, officers,
agents and employees from and against any and all loss, cost, damage, liability
or expense, including reasonable attorneys’ fees, with respect to any claim of
damage or injury to persons or property at the Premises, caused by the gross
negligence or willful misconduct of Landlord or its authorized agents or
employees or the failure of Landlord to perform its obligations hereunder.

 

(C)           Notwithstanding anything to the contrary
contained herein, nothing shall be interpreted or used to in any way affect,
limit, reduce or abrogate any insurance coverage provided by any insurers to
either Tenant or Landlord.

 

(D)          Notwithstanding anything to the contrary
contained in this Lease, nothing herein shall be construed to infer or imply that
Tenant is a partner, joint venturer, agent, employee, or otherwise acting by or
at the direction of Landlord.

 

10.02       Property Insurance.

 

(A)          At all times during the Lease Term,
Tenant shall procure and maintain, at its sole expense, “all-risk” property
insurance, for damage or other loss caused by fire or other casualty or cause
including, but not limited to, vandalism and malicious mischief, theft, water
damage of any type, including sprinkler leakage, bursting of pipes, explosion,
in an amount not less than one hundred percent (100%) of the replacement cost
covering (a) all Alterations made by or for Tenant in the Premises; and (b)
Tenant’s trade fixtures, equipment and other personal property from time to
time situated in the Premises. The proceeds of such insurance shall be used for
the repair or replacement of the property so insured, except that if not so
applied or if this Lease is terminated following a casualty, the proceeds
applicable to the leasehold improvements shall be paid to Landlord and the
proceeds applicable to Tenant’s personal property shall be paid to Tenant.

 

 

14

 

(B)           At all times during the Lease Term,
Tenant shall procure and maintain business interruption insurance in such
amount as will reimburse Tenant for direct or indirect loss of earnings
attributable to all perils insured against in Section 10.02(A).

 

(C)           Landlord shall, at all times during the
Lease Term, procure and maintain “all-risk” property insurance in the amount
not less than ninety percent (90%) of the insurable replacement cost covering
the Building in which the Premises are located and such other insurance as may
be required by a Mortgagee or otherwise desired by Landlord.

 

10.03       Liability Insurance.

 

(A)          At all times during the Lease Term,
Tenant shall procure and maintain, at its sole expense, commercial general
liability insurance applying to the use and occupancy of the Premises and the
business operated by Tenant. Such insurance shall have a minimum combined
single limit of liability of at least One Million Dollars ($1,000,000) per
occurrence and a general aggregate limit of at least One Million Dollars
($1,000,000). All such policies shall be written to apply to all bodily injury,
property damage, personal injury losses and shall be endorsed to include
Landlord and its agents, beneficiaries, partners, employees, and any deed of
trust holder or mortgagee of Landlord or any ground less or as additional
insureds. Such liability insurance shall be written as primary policies, not
excess or contributing with or secondary to any other insurance as may be
available to the additional insureds.

 

(B)           Prior to the sale, storage, use or giving
away of alcoholic beverages on or from the Premises by Tenant or another
person, Tenant, at its own expense, shall obtain a policy or policies of
insurance issued by a responsible insurance company and in a form acceptable to
Landlord saving harmless and protecting Landlord and the Premises against any
and all damages, claims, liens, judgments, expenses and costs, including actual
attorneys’ fees, arising under any present or future law, statute, or ordinance
of the State of California or other governmental authority having jurisdiction
of the Premises, by reason of any storage, sale, use or giving away of
alcoholic beverages on or from the Premises. Such policy or policies of
insurance shall have a minimum combined single limit of One Million
($l,000,000) per occurrence and shall apply to bodily injury, fatal or nonfatal;
injury to means of support; and injury to property of any person. Such policy
or policies of insurance shall name Landlord and its agents, beneficiaries,
partners, employees and any mortgagee of Landlord or any ground lessor of
Landlord as additional insureds.

 

(C)           Landlord shall, at all times during the
Lease Term, procure and maintain commercial general liability insurance for the
Building in which the Premises are located. Such insurance shall have minimum
combined single limit of liability of at least Two Million Dollars ($2,000,000)
per occurrence, and a general aggregate limit of at least Two Million Dollars
($2,000,000).

 

10.04       Workers’ Compensation
Insurance. At
all times during the Lease Term, Tenant shall procure and maintain Workers’
Compensation Insurance in accordance with the laws of the State of California,
and Employer’s Liability insurance with a limit not less than One Million
Dollars ($1,000,000) Bodily Injury Each Accident; One Million Dollars
($1,000,000) Bodily Injury By Disease - Each Person; and One Million Dollars
($1,000,000) Bodily Injury to Disease - Policy Limit.

 

10.05       Policy Requirements. All insurance required to be maintained
by Tenant shall be issued by insurance companies authorized to do insurance
business in the State of California and rated not less than A-VIII in Best’s
Insurance Guide. A certificate of insurance (or, at Landlord’s option, copies
of the applicable policies) evidencing the insurance required under this Article X
shall be delivered to Landlord not less than thirty (30) days prior to the
Commencement Date. No such policy shall be subject to cancellation or
modification without thirty (30) days prior written notice to Landlord and to
any deed of trust holder, mortgagee or ground lessor designated by Landlord to
Tenant. Tenant shall furnish Landlord with a replacement certificate with
respect to any insurance not less than thirty (30) days prior to the expiration
of the current policy. Tenant shall have the right to provide the insurance
required by this Article X pursuant to blanket policies, but only if such
blanket policies expressly provide coverage to the Premises and Landlord as
required by this Lease.

 

 

15

 

10.06       Waiver of Subrogation. Each party hereby waives any right of
recovery against the other for injury or loss due to hazards covered by
insurance or required to be covered, to the extent of the injury or loss
covered thereby. Any policy of insurance to be provided by Tenant or Landlord
pursuant to this Article X shall contain a clause denying the applicable
insurer any right of subrogation against the other party.

 

10.07       Failure to Insure. If Tenant or Landlord fails to maintain
any insurance which Tenant or Landlord is required to maintain pursuant to this
Article X, Tenant shall be liable to Landlord and Landlord shall be liable
to Tenant for any loss or cost resulting from such failure to maintain. Tenant
may not self-insure against any risks required to be covered by insurance without
Landlord’s prior written consent.

 

ARTICLE XI - DAMAGE OR DESTRUCTION

 

11.01       Total Destruction. Except as provided in Section 11.03
below, this Lease shall automatically terminate if the Building is totally
destroyed.

 

11.02       Partial Destruction of
Premises. If
the Premises are damaged by any casualty and, in Landlord’s opinion, the
Premises (exclusive of any Alterations made to the Premises by Tenant) can be
restored to its pre-existing condition within two hundred ten (210) days after
the date of the damage or destruction, Landlord shall, upon written notice from
Tenant to Landlord of such damage, except as provided in Section 11.03,
promptly and with due diligence repair any damage to the Premises (exclusive of
any Alterations to the Premises made by Tenant, which shall be promptly
repaired by Tenant at its sole expense) and, until such repairs are completed,
the Rent shall be abated from the date of damage or destruction in the same
proportion that the rentable area of the portion of the Premises which is
unusable by Tenant in the conduct of its business bears to the total rentable
area of the Premises. If such repairs cannot, in Landlord’s reasonable opinion,
be made within said two hundred ten (210) day period, then either Landlord or
Tenant shall have the right, by written notice given to the other within sixty
(60) days after the date of the damage or destruction, to terminate this Lease
as of the date of the damage or destruction.

 

11.03       Exceptions to Landlord’s
Obligations.
Notwithstanding anything to the contrary contained in this Article XI, Landlord
shall have no obligation to repair the Premises if either: (a) the
Building in which the Premises are located is so damaged as to require repairs
to the Building exceeding twenty percent (20%) of the full insurable value of
the Building; or (b) Landlord elects to demolish the Building in which the
Premises are located; or (c) the damage or destruction occurs less than
two (2) years prior to the Termination Date, exclusive of option periods; or
(d) the damage or destruction is caused by an uninsured event. Further,
Tenant’s Rent shall not be abated if either (i) the damage or destruction
is repaired within five (5) business days after Landlord receives written
notice from Tenant of the casualty, or (ii) Tenant, or any officers,
partners, employees, agents or invitees of Tenant, or any assignee or subtenant
of Tenant, is, in whole or in part, responsible for the damage or destruction.

 

11.04       Waiver. The provisions contained in this Lease shall supersede
any contrary laws (whether statutory, common law or otherwise) now or hereafter
in effect relating to damage, destruction, self-help or termination, including
California Civil Code Sections 1932 and 1933.

 

ARTICLE XII - CONDEMNATION

 

12.01       Taking. If the entire Premises or so much of the
Premises as to render the balance unusable by Tenant shall be taken by
condemnation, sale in lieu of condemnation or in any other manner for any
public or quasi-public purpose (collectively “Condemnation”), and if Landlord,
at its option, is unable or unwilling to provide substitute premises containing
at least as much rentable area as described in Section 1.02 above, then
this Lease shall terminate on the date that title or possession to the Premises
is taken by the condemning authority, whichever is earlier.

 

12.02       Award. In the event of any Condemnation, the
entire award for such taking shall belong to Landlord. Tenant shall have no
claim against Landlord or the award for the value of any unexpired term of this
Lease or otherwise. Tenant shall be entitled to independently pursue a separate
award in a separate proceeding for

 

 

16

 

Tenant’s relocation costs directly associated with the taking, provided
such separate award doss not diminish Landlord’s award.

 

12.03       Temporary Taking.  No temporary taking of the Premises shall
terminate this Lease or entitle Tenant to any abatement of the Rent payable to
Landlord under this Lease; provided, further, that any award for such temporary
taking shall belong to Tenant to the extent that the award applies to any time
period during the Lease Term and to Landlord to the extent that the award
applies to anytime period outside the Lease Term.

 

ARTICLE XIII - RELOCATION

 

13.01       Relocation. Landlord shall have the right, at its option upon not
less than thirty (30) days prior written notice to Tenant, to relocate Tenant
and to substitute for the Premises described above other space in the Building
containing at least as much rentable area as the Premises described in Section
1.02 above with equal or better tenant improvement than the current premises.
If Tenant is already in occupancy of the Premises, then Landlord shall approve
in advance the relocation expenses for purposes of reimbursement for Tenant’s
reasonable moving and telephone relocation expenses and for reasonable
quantities of new stationery upon submission to Landlord of receipts for such
expenditures incurred by Tenant.

 

ARTICLE XIV - ASSIGNMENT AND
SUBLETTING

 

14.01           Restriction.  Without the prior written consent of
Landlord, which shall not be unreasonably withheld, Tenant shall not assign,
encumber, or otherwise transfer this Lease or any interest herein, or sublet
the Premises or any part thereof, or permit the Premises to be occupied by anyone
other than Tenant or Tenant’s employees (any such assignment, encumbrance,
subletting, occupation or transfer is hereinafter referred to as a “Transfer”).
For purposes of this Lease, the term “Transfer” shall not include any change by
Tenant in the form of its legal organization under applicable state law (such
as, for example, a  change from a general partnership
to a limited partnership or from a corporation to a limited liability company).
Tenant agrees to provide Landlord with written notice and such reasonable
supporting documents regarding any of the events mentioned in the preceding clause.
An assignment, subletting or other action in violation of the foregoing shall
be void and, at Landlord’s option, shall constitute a material breach of this
Lease. Notwithstanding anything contained in this Article XIV to the
contrary Tenant shall have the right to assign the Lease or sublease the
Premises, or any part thereof, to an “Affiliate” without the prior written
consent of Landlord, but upon at least twenty (20) days’ prior written notice
to Landlord, provided that said Affiliate is not in default under any other
lease for space in a property that is managed by Landlord or its managing
agent. For purposes of this provision, the term “Affiliate” shall mean any corporation
or other entity controlling, controlled by, or under common control with
(directly or indirectly) Tenant, including, without limitation, any parent
corporation controlling Tenant or any subsidiary that Tenant controls. The term
“control,” as used herein, shall mean the power to direct or cause the direction
of the management and policies of the controlled entity through the ownership
of more than fifty percent (50%) of the voting securities in such controlled entity.
Notwithstanding anything contained in this Article XIV to the contrary,
Tenant expressly covenants and agrees not to enter into any lease, sublease,
license, concession or other agreement for use, occupancy or utilization of the
Premises which provides for rental or other payment for such use, occupancy or
utilization based in whole or in part on the net income or profits derived by
any person from the property leased, used, occupied or utilized (other than an
amount based on a fixed percentage or percentages of receipts or sales), and that
any such purported lease, sublease, license, concession or other agreement
shall be absolutely void and ineffective as a  conveyance of any
right or interest in the possession, use, occupancy or utilization of any part
of the Premises.

 

14.02           Notice to Landlord.  If Tenant desires to assign this Lease or
any interest herein, or to sublet all or any part of the Premises, then at
least thirty (30) days but not more than one hundred eighty (180) days prior to
the effective date of the proposed assignment or subletting, Tenant shall
submit to Landlord in connection with Tenant’s request for Landlord’s consent:

 

(A)          A statement containing (i) the name
and address of the proposed assignee or subtenant; (ii) such financial
information with respect to the proposed assignee or subtenant as Landlord
shall reasonably require;

 

 

17

 

(iii) the type of
use proposed for the Premises; and:(iv)
all of the principal terms of the proposed assignment or subletting; and

 

(B)           Four (4) originals of the assignment or sublease on
a form approved by Landlord and four (4) originals of the Landlord’s Consent to
Sublease or Assignment and Assumption of Lease and Consent.

 

14.03       Landlord’s Recapture Rights. At any time within twenty (20) business
days after Landlord’s receipt of all (but not less than all) of the information
and documents described in Section 14.02 above, Landlord may, at its option by
written notice to Tenant, elect to: (a) sublease the Premises or the portion
thereof proposed to be sublet by Tenant upon the same terms as those offered to
the proposed subtenant; (b) take an assignment of the Lease upon the same terms
as those offered to the proposed assignee; or (c) terminate the Lease in its
entirely or as to the portion of the Premises proposed to be assigned or
sublet, with a proportionate adjustment in the Rent payable hereunder of the
Lease is terminated as to less than all of the Premises. If Landlord does not
exercise any of the options described in the preceding sentence, then, during
the above described twenty (20) business day period, Landlord shall either
consent or deny its consent to the proposed assignment or subletting.

 

14.04       Landlord’s Consent;
Standards.
Landlord’s consent to a proposed assignment or subletting shall not be
unreasonably withheld; but, in addition to any other grounds for denial, Landlord’s
consent shall be deemed reasonably withheld if, in Landlord’s good faith
judgment: (i) the proposed assignee or subtenant does not have the
financial strength to perform its obligations under this Lease or any proposed
sublease; (ii) the business and operations of the proposed assignee or
subtenant are not of comparable quality to the business and operations being
conducted by other tenants in the Building; (iii) the proposed assignee or
subtenant intends to use any part of the Premises for a purpose not permitted
under this Lease; (iv) either the proposed assignee or subtenant, or any person
which directly or indirectly controls, is controlled by, or is under common
control with the proposed assignee or subtenant occupies space in the Building,
or is negotiating with Landlord to lease space in the Building; (v) the
proposed assignee or subtenant is disreputable; or (vi) the use of the Premises
or the Building by the proposed assignee or subtenant would, in Landlord’s
reasonable judgment, impact the Building in a negative manner including but not
limited to significantly increasing the pedestrian traffic in and out of the
Building or requiring any alterations to the Building to comply with applicable
laws; (vii) the subject space is not regular in shape with appropriate means
of ingress and egress suitable for normal renting purposes; (viii) the
transferee is a government (or agency or instrumentality thereof) or (ix) Tenant
has failed to cure a default at the time Tenant requests consent tot the
proposed Transfer.

 

14.05       Additional Rent. If Landlord consents to any such
assignment or subletting, one half (1/2) of the amount by which all sums or
other economic consideration received by Tenant in connection with such
assignment or subletting, whether denominated as rental or otherwise, exceeds,
in the aggregate, the total sum which Tenant is obligated to pay Landlord under
this Lease (prorated to reflect obligations allocable to less than all of the
Premises under a sublease) shall be paid to Landlord promptly after receipt as additional
Rent under the Lease without affecting or reducing any other obligation of
Tenant hereunder.

 

14.06       Landlord’s Costs. If Tenant shall Transfer this Lease or
all or any part of the Premises or shall request the consent of Landlord to any
Transfer, Tenant shall pay to Landlord as additional rent Landlord’s costs
related thereto, including Landlord’s reasonable out of pocket attorneys’ fees
and reasonable out of pocket expenses.

 

14.07       Continuing Liability of
Tenant. Notwithstanding any Transfer, including
an assignment or sublease to an Affiliate, Tenant shall remain as fully and primarily
liable for the payment of Rent and for the performance of all other obligations
of Tenant contained in this Lease to the same extent as if the Transfer had not
occurred unless in connection with an assignment, Landlord and Tenant agree
that Tenant shall be released; provided, however, that any act or omission of
any transferee, other than Landlord, that violates the terms of this Lease
shall be deemed a violation of this Lease by Tenant.

 

14.08       Non-Waiver. The consent by Landlord to any Transfer
shall not relieve Tenant, or any person claiming through or by Tenant, of the
obligation to obtain the consent of Landlord, pursuant to this Article XIV,
to any further Transfer. In the event of an assignment or subletting, Landlord
may collect rent from the assignee or the subtenant without waiving any rights
hereunder and collection of the rent from a person other than Tenant shall not

 

 

18

 

be  deemed a waiver of any of Landlord’s rights under this
Article XIV, an acceptance of assignee or subtenant as Tenant, or a release of
Tenant from the performance of Tenant’s obligations under this Lease. If Tenant
shall default under this Lease and fail to cure within the time permitted,
Landlord is irrevocably authorized, as Tenant’s agent and attorney-in-fact, to
direct any transferee to make all payments under or in connection with the
Transfer directly to Landlord (which Landlord shall apply towards Tenant’s
obligations under this Lease) until such default is cured.

 

ARTICLE XV - DEFAULT AND REMEDIES

 

15.01       Events of Default By
Tenant. The occurrence of any of the following
shall constitute a material default and breach of this Lease by Tenant:

 

(A)          The failure by Tenant to pay Base Rent or
make any other payment required to be made by Tenant hereunder as and when due,
which failure continues for a period of three (3) business days following
written notice.

 

(B)           The abandonment of the Premises by Tenant
or the vacation of the Premises by Tenant for fourteen (14) consecutive days
(without the payment of Rent) without providing a reasonable level of security.

 

(C)           The making by Tenant of any assignment of
this Lease or any sublease of all or part of the Premises, except as expressly
permitted under Article XIV of this Lease.

 

(D)          The failure by Tenant to observe or
perform any other provision of this Lease to be observed or performed by
Tenant, other than those described in Sections 15.01(A), 15.01(B) or 15.01
(C) above, if such failure continues for thirty (30) days after written notice
thereof by Landlord to Tenant; provided, however, that if the nature of the
default is such that it cannot be cured within the thirty (30) day period, no
default shall exist if Tenant commences the curing of the default within the
thirty (30) day period and thereafter diligently prosecutes the same to
completion.

 

(E)           The making by Tenant of any general
assignment for the benefit of creditors, the filing by or against Tenant of a
petition under any federal or state bankruptcy or insolvency laws (unless, in
the case of a petition filed against Tenant the same is dismissed within thirty
(30) days after filing); the appointment of a trustee or receiver to take
possession of substantially all of Tenant’s assets at the Premises or Tenant’s
interest in this Lease or the Premises, when possession is not restored to
Tenant within thirty (30) days; or the attachment, execution or other seizure
of substantially all of Tenant’s assets located at the Premises or Tenant’s
interest in this Lease or the Premises, if such seizure is not discharged within
sixty (60) days.

 

(F)           Any material misrepresentation herein, or
material misrepresentation or omission in any financial statements or other materials
provided by Tenant in connection with negotiating or entering into this Lease or
in connection with any Transfer under Section 14.01.

 

15.02       Landlord’s Right to
Terminate Upon Tenant Default. In the event of any default by Tenant as provided in Section 15.01
above, Landlord shall have the right to terminate this Lease and recover
possession of the Premises by giving written notice to Tenant of Landlord’s
election to terminate this Lease, in which event Landlord shall be entitled to
receive from Tenant:

 

(A)          The worth at the time of award of any
unpaid Rent which had been earned at the time of such termination; plus

 

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

 

 

19

 

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

 

(D)          Any other amount necessary to compensate
Landlord for all the detriment proximately caused by Tenant’s failure to
perform its obligations under this Lease or which in the ordinary course of
things would be likely to result therefrom; and

 

(E)           At Landlord’s election, such other
amounts in addition to or in lieu of the foregoing as may be permitted from
time to time by applicable law.

 

As used in subparagraphs (A) and (B) above, “worth at the
time of award” shall be computed by allowing interest on such amounts at the
then highest lawful rate of interest, but in no event to exceed one percent
(1%) per annum plus the rate established by the Federal Reserve Bank of San
Francisco on advances made to member banks under Sections of the Federal
Reserve Act (“discount rate”) prevailing at the time of the award. As used in
paragraph (C) above, “worth at the time of award” shall be computed by
discounting such amount by (i) the discount rate of the Federal Reserve
Bank of San Francisco prevailing at the time of award plus (ii) one percent
(1%).

 

15.03       Mitigation of Damages. If Landlord terminates this Lease or
Tenant’s right to possession of the Premises, Landlord shall undertake
commercially reasonable efforts to mitigate Landlord’s damages except to the extent
required by applicable law. If Landlord has not terminated this Lease or
Tenant’s right to possession of the Premises, Landlord shall have no obligation
to mitigate under any circumstances and may permit the Premises to remain
vacant or abandoned. If Landlord is required to mitigate damages as provided
herein: (i) Landlord shall be required only to use reasonable efforts to
mitigate, which shall not exceed such efforts as Landlord generally uses to lease
other space in the Building, (ii) Landlord will not be deemed to have
failed to mitigate if Landlord or its affiliates lease any other portions of
the Building or other projects owned by Landlord or its affiliates in the same geographic
area, before reletting all or any portion of the Premises, and (iii) any
failure to mitigate as described herein with respect to any period of time
shall only reduce the Rent and other amounts to which Landlord is entitled
hereunder by the reasonable rental value of the Premises during such period. In
recognition that the value of the Building depends on the rental rates and
terms of leases therein, Landlord’s rejection of a prospective replacement
tenant based on an offer of rentals unreasonably below Landlord’s published
rates for new leases of comparable space at the Building at the time in
question, or at Landlord’s option, unreasonably below the rates provided in
this Lease, or containing terms unreasonably less favorable than those
contained herein, shall not give rise to a claim by Tenant that Landlord failed
to mitigate Landlord’s damages.

 

15.04       Landlord’s Right To
Continue Lease Upon Tenant Default. In the event of a default of this Lease and
abandonment of the Premises by Tenant, if Landlord does not elect to terminate
this Lease as provided in Section 15.02 above, Landlord may from time to
time, without terminating this Lease, enforce all of its rights and remedies
under this Lease. Without limiting the foregoing, Landlord has the remedy described
in California Civil Code Section 1951.4 (Landlord may continue this Lease
in effect after Tenant’s default and abandonment and recover Rent as it becomes
due, if Tenant has the right to Transfer, subject to reasonable limitations).
In the event Landlord re-lets the Premises, to the fullest extent permitted by
law, the proceeds of any reletting shall be applied first to pay to Landlord
all costs and expenses of such reletting (including without limitation, costs
and expenses of retaking or repossessing the Premises, removing persons and
property therefrom, securing new tenants, including expenses for redecoration,
alterations and other costs in connection with preparing the Premises for the new
tenant, and if Landlord shall maintain and operate the Premises, the reasonable
out of pocket costs thereof) and receivers’ fees incurred in connection with
the appointment of and performance by a receiver to protect the Premises and
Landlord’s interest under this Lease and any necessary or reasonable
alterations; second, to the payment of any indebtedness of Tenant to Landlord
other than Rent due and unpaid hereunder; third, to the payment of Rent due and
unpaid hereunder; and the residue, if any, shall be held by Landlord and
applied in payment of other or future obligations of Tenant to Landlord as the
same may become due and payable, and Tenant shall not be entitled to receive
any portion of such revenue.

 

15.05       Right of Landlord to
Perform. All covenants and agreements to be
performed by Tenant under this Lease shall be performed by Tenant at Tenant’s
sole cost and expense. If Tenant shall fail to pay any sum of

 

 

20

 

money, other than Rent,
required to be paid by it hereunder or shall fail to perform any other act on its
part to be performed hereunder, Landlord may, but shall not be obligated to, make
any payment or perform any such other act on Tenant’s part to be made or
performed, without waiving or releasing Tenant of its obligations under this
Lease. Any sums so paid by Landlord and all necessary incidental costs,
together with interest thereon at the lesser of the maximum rate permitted by
law if any or ten percent (10%) per annum from the date of such payment, shall
be payable to Landlord as additional rent on demand and Landlord shall have the
same rights and remedies in the event of nonpayment as in the case of default
by Tenant in the payment of Rent.

 

15.06       Default Under Other
Leases.  If
the term of any lease, other than this Lease, heretofore or hereafter made by
Tenant for any office space in the Building shall be terminated or terminable
after the making of this Lease because of any default by Tenant under such
other lease, such fact shall empower Landlord, at Landlord’s sole option, to
terminate this Lease by notice to Tenant or to exercise any of the rights or
remedies set forth in Section 15.02.

 

15.07       Non Waiver. Nothing in this Article shall be deemed
to affect Landlord’s rights to indemnification for liability or liabilities
arising prior to termination of this Lease or Tenant’s right to possession of
the Premises for personal injury or property damages under the indemnification
clause or clauses contained in this Lease. No acceptance by Landlord of a
lesser sum than the Rent then due shall be deemed to be other than on account
of the earliest installment of such rent due, nor shall any endorsement or
statement on any check or any letter accompanying any check or payment as rent
be deemed an accord and satisfaction, and Landlord may accept such check or payment
without prejudice to Landlord’s right to recover the balance of such
installment or pursue any other remedy in the Lease provided. The delivery of
keys to any employee of Landlord or to Landlord’s agent or any employee thereof
shall not operate as a termination of this Lease or a surrender of the
Premises.

 

15.08       Cumulative Remedies.  The specific remedies to which Landlord
may resort under the terms of the Lease are cumulative and are not intended to
be exclusive of any other remedies or means of redress to which it may be
lawfully entitled in case of any breach or threatened breach by Tenant of any
provisions of the Lease. In addition to the other remedies provided in the Lease,
Landlord shall be entitled to a restraint by injunction of the violation or
attempted or threatened violation of any of the covenants, conditions or
provisions of the Lease or to a decree compelling specific performance of any
such covenants, conditions or provisions.

 

15.09       Default by Landlord.  Landlord’s failure to perform or observe
any of its obligations under this Lease shall constitute a default by Landlord
under this Lease only if such failure shall continue for a period of thirty (30)
days (or the additional time, if any, that is reasonably necessary to promptly
and diligently cure the failure) after Landlord receives written notice from
Tenant specifying the default. The notice shall give in reasonable detail the nature
and extent of the failure and shall identify the Lease provision(s) containing
the obligation(s). If Landlord shall default in the performance of any of its
obligations under this Lease (after notice and opportunity to cure as provided
herein), Tenant may pursue any remedies available to it under the law and this
Lease, except that, in no event, shall Landlord be liable for punitive damages,
lost profits, business interruption, speculative, consequential or other such damages.
If Landlord does not begin repairs or other obligations within thirty (30) days
(or the additional time, if any, that is reasonably necessary to promptly and
diligently cure the failure) after Landlord receives written notice from Tenant
specifying the default, Tenant may self-help to perform repairs or any other
obligation of Landlord, and shall have the right to withhold, set-off, or abate
Rent.

 

15.10       Abatement Recapture. Any agreement for free or abated rent,
free parking, or other charges, or for the giving or paying by Landlord to or
for Tenant of any cash or other bonus, inducement or consideration for Tenant’s
entering into this Lease, all of which concessions are hereinafter referred to
as “Abatement Provisions”, shall
be deemed conditioned upon Tenant’s full and faithful performance of all of the
terms, covenants and conditions of this Lease. Upon the occurrence of a breach
of this Lease by Tenant, any such Abatement Provision shall automatically be
deemed deleted from this Lease and of no further force or effect, and any rent,
other charge, bonus, inducement or consideration theretofore abated, given or
paid by Landlord under such an Abatement Provision shall be immediately due and
payable by Tenant to Landlord, notwithstanding any subsequent cure of said breach
by Tenant. The acceptance by Landlord of rent or the cure of the breach which
initiated the operation of this paragraph shall not be deemed a waiver by
Landlord of the provisions of this paragraph unless specifically so stated in
writing by Landlord at the time of such acceptance.

 

 

21

 

ARTICLE XVI - ATTORNEYS’ FEES: COSTS
OF SUIT

 

16.01       Attorneys Fees. If either Landlord or Tenant shall
commence any action or other proceeding against the other arising out of, or
relating to, this Lease or the Premises, the prevailing party shall be entitled
to recover from the losing party, in addition to any other relief, its
reasonable out of pocket attorneys’ fees and expenses irrespective of whether
or not the action or other proceeding is prosecuted to judgment and irrespective
of any court schedule of reasonable attorneys’ fees. In addition, Tenant shall
reimburse Landlord, upon demand, for all reasonable attorneys’ fees incurred in
collecting Rent, resolving any actual default by Tenant, securing
indemnification as provided in Article X and paragraphs, 16.02, 23.01 and 25.01
herein or otherwise seeking enforcement against Tenant, its sublessees and
assigns, of Tenant’s obligations under this Lease.

 

16.02       Indemnification.  Should Landlord be made a party to any
litigation instituted by Tenant against a party other than Landlord, or by a
third party against Tenant, Tenant shall indemnify, hold harmless and defend
Landlord from any and all loss, cost, liability, damage or expense incurred by
Landlord, including attorneys’ fees, in connection with the litigation except
to the extend caused by Landlord’s negligence or willful misconduct..

 

ARTICLE XVII - SUBORDINATION AND
ATTORNMENT

 

17.01         Subordination.  This Lease, and the rights of Tenant
hereunder, are and shall be subject and subordinate to the interest of (i) all
present and future ground leases and master leases of all or any part of the Building;
(ii) present and future mortgages and deeds of trust encumbering all or
any part of the Building; (iii) all past and future advances made under
any such mortgages or deeds of trust; and (iv) all renewals,
modifications, replacements and extensions of any such ground leases, master
leases, mortgages and deeds of trust; provided, however, that any lessor under
any such ground lease or master lease or any mortgagee or beneficiary under any
such mortgage or deed of trust (any such lessor, mortgagee or beneficiary is
hereinafter referred to as a “Mortgagee”) shall have the right to elect, by written
notice given to Tenant, to have this Lease made superior in whole or in part to
any such ground lease, master lease, mortgage or deed of trust (or subject and
subordinate to such ground lease, master lease, mortgage or deed of trust but
superior to any junior mortgage or junior deed of trust). Upon demand, Tenant
shall execute, acknowledge and deliver any instruments reasonably requested by
Landlord or any such Mortgagee to effect the purposes of this Section 17.01.
Such instruments may contain, among other things, provisions to the effect that
such Mortgagee (hereafter, for the purposes of this Section 17.01, a
“Successor Landlord”) shall (i) not be liable for any act or omission of
Landlord or its predecessors, if any, prior to the date of such Successor Landlord’s
succession to Landlord’s interest under this Lease; (ii) not be subject to
any offsets or defenses which Tenant might have been able to assert against
Landlord or its predecessors, if any, prior to the date of such Successor
Landlord’s succession to Landlord’s interest under this Lease; (iii) not be
liable for the return of any security deposit under the Lease unless the same
shall have actually been deposited with such Successor Landlord; (iv) be entitled
to receive notice of any Landlord default under this Lease plus a reasonable
opportunity to cure such default prior to Tenant having any right or ability to
terminate this Lease as a result of such Landlord default; (v) not be
bound by any rent or additional rent which Tenant might have paid for more than
the current month to Landlord; (vi) not be bound by any obligation to make
any payment to Tenant which was required to be made prior to the time such
Successor Landlord succeeded to Landlord’s interest and (vii) not be bound by
any obligation under the Lease to perform any work or to make any improvements
to the demised Premises. Any obligations of any Successor Landlord under its
respective lease shall be non-recourse as to any assets of such Successor
Landlord other than its interest in the Premises and improvements. Landlord shall
provide Tenant with Lender’s SNDA and will reasonably assist with future
Lender’s.

 

17.02         Attornment.  If the interests of Landlord under the
Lease shall be transferred to any superior Mortgagee or other purchaser or
person taking title to the Building by reason of the termination of any
superior lease or the foreclosure of any superior mortgage or deed of trust,
Tenant shall be bound to such Successor Landlord under all of the terms,
covenants and conditions of the Lease for the balance of the term thereof
remaining and any extensions or renewals thereof which may be effected in
accordance with any option therefor in the Lease, with the same force and
effect as if Successor Landlord were the landlord under the Lease, and Tenant
shall attorn to and

 

 

22

 

recognize as Tenant’s
landlord under this Lease such Successor Landlord, as its landlord, said
attornment to be effective and self-operative without the execution of any
further instruments upon Successor Landlord’s succeeding to the interest of Landlord
under the Lease. Tenant shall, upon demand, execute any documents reasonably
requested by any such person to evidence the attornment described in this Section 17.02.
Concurrently, upon written request from Tenant, and provided Tenant is not in
default under this Lease, Landlord agrees to use diligent, commercially
reasonable efforts to obtain a Non-Disturbance Agreement from the Successor
Landlord. Such Non-Disturbance Agreement may be embodied in the Mortgagee’s
customary form of Subordination and Non-Disturbance Agreement. If after
exerting diligent, commercially reasonable efforts, Landlord is unable to
obtain a Non-Disturbance Agreement from any such Mortgagee, Landlord shall have
no further obligation to Tenant with respect thereto.

 

17.03       Mortgagee Protection.  Tenant agrees to give any Mortgagee, by
registered or certified mail, a copy of any notice of default served upon
Landlord by Tenant, provided that prior to such notice Tenant has been notified
in writing (by way of service on Tenant of a copy of Assignment of Rents and
Leases, or otherwise) of the address of such Mortgagee (hereafter the “Notified
Party”). Tenant further agrees that if Landlord shall have failed to cure such
default within twenty (20) days after such notice to Landlord (or if such
default cannot be cured or corrected within that time, then such additional
time as may be necessary if Landlord has commenced within such twenty (20) days
and is diligently pursuing the remedies or steps necessary to cure or correct
such default), then the Notified Party shall have an additional thirty (30)
days within which to cure or correct such default (or if such default cannot be
cured or corrected within that time, then such additional time as may be
necessary if the Notified Party has commenced within such thirty (30) days and
is diligently pursuing the remedies or steps necessary to cure or correct such
default). Until the time allowed, as aforesaid, for the Notified Party to cure
such default has expired without cure, Tenant shall have no right to, and shall
not, terminate this Lease on account of Landlord’s default.

 

ARTICLE XVIII - QUIET ENJOYMENT

 

18.01       Provided that Tenant performs all of its
obligations hereunder; Tenant shall have and peaceably enjoy the Premises
during the Lease Term free of claims by or through Landlord, subject to all of
the terms and conditions contained in this Lease.

 

ARTICLE XIX - RULES AND REGULATIONS

 

19.01       The Rules and Regulations attached hereto as Exhibit C
are hereby incorporated by reference herein and made a part hereof. Tenant shall
abide by, and faithfully observe and comply with the Rules and Regulations
and any reasonable and non-discriminatory amendments, modifications and/or
additions thereto as may hereafter be adopted and published by written notice
to tenants by Landlord for the safety, care, security, good order and/or
cleanliness of the Premises and/or the Building. Landlord shall not be liable
to Tenant for any violation of such rules and regulations by any other
tenant or occupant of the Building, although Landlord agrees to make
commercially reasonable efforts to enforce.

 

ARTICLE XX - ESTOPPEL CERTIFICATES

 

20.01       Tenant agrees at any time and from time
to time upon not less than ten (10) days’ prior written notice from
Landlord to execute, acknowledge and deliver to Landlord a statement in writing
addressed and certifying to Landlord, to any current or prospective Mortgagee
or any assignee thereof, to any prospective purchaser of the land, improvements
or both comprising the Building, and to any other party designated by Landlord,
that this Lease is unmodified and in full force and effect (of if there have
been modifications, that the same is in full force and effect as modified and
stating the modifications); that Tenant has accepted possession of the
Premises, which are acceptable in all respects, and that any improvements
required by the terms of this Lease to be made by Landlord have been completed
to the satisfaction of Tenant; that Tenant is in full occupancy of the
Premises; that no rent has been paid more than thirty (30) days in advance;
that the first month’s Base Rent has been paid; that Tenant is entitled to no
free rent or other concessions except as stated in this Lease; that Tenant has not
been notified of any

 

 

23

 

previous assignment
of Landlord’s or any predecessor landlord’s interest under this Lease; the
dates to which Base Rent, additional rental and other charges have been paid; that
Tenant, as of the date of such certificate, has no charge, lien or claim of
setoff under this Lease or otherwise against Base Rent, additional rental or
other charges due or to become due under this Lease; that Landlord is not in
default in performance of any covenant, agreement or condition contained in
this Lease; or any other matter relating to this Lease or the Premises or, if
so, specifying each such default In addition, in the event that such
certificate is being given to any Mortgagee, such statement may contain any
other provisions customarily required by such Mortgagee including, without
limitation, an agreement on the part of Tenant to furnish to such Mortgagee,
written notice of any Landlord default and a reasonable opportunity for such
Mortgagee to cure such default prior to Tenant being able to terminate this
Lease. Any such statement delivered pursuant to this Section may be relied
upon by Landlord or any Mortgagee, or prospective purchaser to whom it is
addressed and such statement, if required by its addressee, may so specifically
state.

 

ARTICLE XXI - ENTRY BY LANDLORD

 

21.01       Landlord may enter the Premises at all
reasonable times and upon prior reasonable notice to: inspect the same; exhibit
the same to prospective purchasers, Mortgagees or tenants; determine whether
Tenant is complying with all of its obligations under this Lease; supply
janitorial and other services to be provided by Landlord to Tenant under this
Lease; post notices of non-responsibility; and make repairs or improvements in
or to the Building or the Premises; provided, however, that all such work shall
be done as promptly as reasonably possible and so as to cause as little
interference to Tenant as reasonably possible. Tenant hereby waives any claim
for damages for any injury or inconvenience to, or interference with, Tenant’s
business, any loss of occupancy or quiet enjoyment of the Premises or any other
loss occasioned by such entry.

 

Notwithstanding anything to the contrary contained herein, Landlord
shall not have at any time during the term of this Lease the right to have
access to or take possession of any of Tenant’s business records or the records
or the personal property located on the Premises of any customer of Tenant or
of any third party. Furthermore, any rights and remedies of Landlord to enter
upon and assume control of the Premises and of any personal property thereof
are subject to the power of the Commissioner of the California Department of
Financial Institutions and other bank regulatory agencies.

 

ARTICLE XXII

 

LANDLORD’S LEASE UNDERTAKINGS EXCULPATION FROM
PERSONAL LIABILITY;

TRANSFER OF LANDLORD’S INTEREST

 

22.01       Landlord’s Lease
Undertakings.
Notwithstanding anything to the contrary contained in this Lease or in any
exhibits, Riders or addenda hereto attached (collectively the “Lease
Documents”), it is expressly understood and agreed by and between the parties
hereto that: (a) the recourse of Tenant or its successors or assigns against
Landlord with respect to the alleged breach by or on the part of Landlord of
any representation, warranty, covenant, undertaking or agreement contained in
any of the Lease Documents or otherwise arising out of Tenant’s use of the
Premises or the Building (collectively, “Landlord’s Lease Undertakings”) shall
extend only to Landlord’s interest in the real estate of which the Premises
demised under the Lease Documents are a part (“Landlord’s Real Estate”) and not
to any other assets of Landlord or its officers, directors or shareholders; and
(b) except to the extent of Landlord’s interest in Landlord’s Real Estate,
no personal liability or personal responsibility of any sort with respect to
any of Landlord’s Lease Undertakings or any alleged breach thereof is assumed
by, or shall at any time be asserted or enforceable against, Landlord, Jamison
Services, Inc., or against any of their respective directors, officers,
employees, agents, constituent partners, beneficiaries, trustees or
representatives. Landlord represents and warrants to Tenant that (i) fee
title to the Project and Premises is vested in Landlord, and, as of the date of
this Lease, is subject to no defects or encumbrances that would prevent or
interfere with the Agreed Use; (ii) by executing this Lease and by
allowing Tenant to use the Premises for the Agreed Use, Landlord is not
violating and will not be violating any restrictive covenant or agreement
contained in any other lease or contract affecting Landlord or the Premises; (iii)
except as disclosed to Tenant in writing prior to Tenant’s execution of this
Lease, there is no active litigation with respect to the Project involving
other existing or prior tenants, adjacent landowners or governmental

 

 

24

 

agencies and (iv) Landlord has the authority to enter into this Lease and
its execution and delivery by Landlord has been duly authorized.

 

22.02       Transfer of Landlord’s
Interest. In
the event of any transfer of Landlord’s interest in the Building, Landlord
shall be automatically freed and relieved from all applicable liability with
respect to performance of any covenant or obligation on the part of Landlord,
provided any deposits or advance rents held by Landlord are turned over to the
grantee and said grantee expressly assumes, subject to the limitations of this Section 22,
all the terms, covenants and conditions of this Lease to be performed on the
part of Landlord, it being intended hereby that the covenants and obligations
contained in this Lease on the part of Landlord shall, subject to all the
provisions of this Section 22, be binding on Landlord, its successors and
assigns, only during their respective periods of ownership.

 

ARTICLE XXIII - HOLDOVER TENANCY

 

23.01       Tenant has no right to retain possession of
the Premises upon expiration or termination of the Lease. If Tenant holds possession
of the Premises after the expiration or termination of the Lease Term, by lapse
of time or otherwise, Tenant shall become a tenant at sufferance upon all of
the terms contained herein, except as to Lease Term and Rent. During such holdover
period, Tenant shall pay to Landlord a monthly rental equivalent to one hundred
twenty five percent (125%) of the Rent Payable by Tenant to Landlord with
respect to the last month of the Lease Term. The monthly rent payable for such
holdover period shall in no event be construed as a penalty or as liquidated
damages for such retention of possession. All options, rights of first refusal,
concessions and discounts, if any, granted under this Lease shall be deemed
terminated and of no force or effect during such month-to-month tenancy.
Without limiting the foregoing, Tenant hereby agrees to indemnify, defend and
hold harmless Landlord, its beneficiary, and their respective agents,
contractors and employees, from and against any and all claims, liabilities,
actions, losses, damages (including without limitation, direct, indirect, incidental
and consequential) and expenses ( including, without limitation, court costs
and reasonable attorneys’ fees) asserted against or sustained by any such party
and arising from or by reason of such retention of possession, which
obligations shall survive the expiration or termination of the Lease Term.

 

ARTICLE XXIV - NOTICES

 

24.01       All notices which Landlord or Tenant may
be required, or may desire, to serve on the other may be served, as an
alternative, to personal service, by mailing the same by registered or
certified mail, postage prepaid, addressed to Landlord at the address for
Landlord set forth in Section l.12 above and to Tenant at the address for
Tenant set forth in Section 1.13 above, or, from and after the
Commencement Date, to Tenant at the Premises whether or not Tenant has departed
from, abandoned or vacated the Premises, or addressed to such other address or
addresses as either Landlord or Tenant may from time to time designate to the
other in writing. Any notice shall be deemed to have been served at the time
the same was posted.

 

ARTICLE XXV - BROKERS

 

25.01       The parties recognize as the broker who
procured this Lease the firm specified in Section 1.14 and agree that
Landlord shall be solely responsible for the payment of any brokerage
commissions to said broker, and that Tenant shall have no responsibility there for
unless written provision to the contrary has been made a part of this Lease. If
Tenant has dealt with any other person or real estate broker in respect to
leasing, subleasing or renting space in the Building, Tenant shall protect,
indemnify, hold harmless and defend Landlord from any liability in respect
thereto.

 

 

25

 

ARTICLE XXVI - ELECTRONIC SERVICES

 

26.01       Tenant’s Lines. Tenant may, in a manner consistent with the
provisions and requirements of this Lease, install, maintain, replace, remove
or use any communications or computer or other electronic service wires, cables
and related devices (collectively the “Lines”) at the Building in or serving
the Premises, provided: (a) Tenant shall obtain Landlord’s prior written
consent, which consent will not be unreasonably withheld by Landlord, (b) if
Tenant at any time uses any equipment that may create an electromagnetic field
exceeding the normal insulation ratings of ordinary twisted pair riser cable or
cause radiation higher than normal background radiation, the Lines therefor
(including riser cables) shall be appropriately insulated to prevent such
excessive electromagnetic fields or radiation, and (c) Tenant shall pay
all costs in connection therewith. Landlord reserves the right to require that
Tenant remove any Lines which are installed in violation of these provisions.
Tenant shall not, without the prior written consent of Landlord in each
instance, grant to any third party a security interest or lien in or on the
Lines, and any such security interest or lien granted without Landlord’s
written consent shall be null and void.

 

26.02       Definition of Electronic Services. As used herein “Electronic Services Provider” means a
business which provides telephone, telegraph, telex, video, other
telecommunications or other services which permit Tenant to receive or transmit
information by the use of electronics and which require the use of wires,
cables, antennas or similar devices in or on the Building. The services of
Electronic Services Providers are sometimes referred to herein as “Electronic
Services.”

 

26.03       No Right to Specific Services. Landlord shall have no obligation (i) to install
any Electronic Services equipment or facilities, (ii) to make available to
Tenant the services of any particular Electronic Services Provider, Landlord
may (but shall not have the obligation to): (x) install new Lines at the
property, (y) create additional space for Lines at the property, and (z) adopt
reasonable and uniform rules and regulations with respect to Lines.

 

26.04       Limitation of Landlord’s Responsibility. Tenant acknowledges and agrees that all Electronic
Services desired by Tenant shall be ordered and utilized at the sole expense of
Tenant. Unless Landlord otherwise requests or consents in writing, all of
Tenant’s Electronic Services equipment shall be and remain solely in the
Tenant’s premises and the telephone closet(s) on the floor(s) on
which the Tenant’s premises is located, in accordance with rules and
regulations adopted by Landlord from time to time. Unless otherwise
specifically agreed to in writing, Landlord shall have no responsibility for
the maintenance of Tenant’s Electronic Services equipment, including Lines; nor
for any Lines or other infrastructure to which Tenant’s Electronic Services
equipment may be connected. Tenant agrees that to the extent any Electronic Services
are interrupted, curtailed or discontinued, Landlord shall have no obligation
or liability with respect thereto and it shall be the sole obligation of Tenant
at its own expense to obtain substitute service. Except to the extent arising from
the intentional or grossly negligent acts of Landlord or Landlord’s agents or
employees, Landlord shall have no liability for damages arising from,  and Landlord does not warrant that Tenant’s use of any
Lines will be free from the following (collectively called “Line Problems”): (x) any
eavesdropping or wire tapping by unauthorized parties, (y) any failure of
any Lines to satisfy Tenant’s requirements, or (z) any shortages,
failures, variations, interruptions, disconnection’s, loss or damage caused by the
installation, maintenance, replacement, use or removal of Lines by or for other
tenants or occupants at the property. Under no circumstances shall any Line
Problems be deemed an actual or constructive eviction of Tenant, render
Landlord liable to Tenant for abatement of Rent, or relieve Tenant from
performance of Tenant’s obligations under this Lease. Landlord in no event
shall be liable for damages by reason of loss of profits, business interruption
or other consequential damage arising from any Line Problems.

 

26.05          Necessary Service
Interruptions.
Landlord shall have the right, upon reasonable prior notice to Tenant, to
interrupt or turn off Electronic Services facilities in the event of emergency
or as necessary in connection with maintenance, repairs or construction at the
Building or installation of Electronic Services equipment for other Tenants of
the Building or on account of violation by the Electronic Services Provider or
owner of the Electronic Services equipment of any obligation to Landlord or in
the event that Tenant’s use of the Electronic Services infrastructure of the
Building materially interferes with the Electronic Services of other tenants of
the Building.

 

26.06          Removal of Equipment,
Wiring and Other Facilities. Any and
all Electronic Services equipment installed in the Tenant’s Premises or
elsewhere in the Building by or on behalf of Tenant, including Lines, or other
facilities for Electronic Services reception or transmittal, shall be removed
prior to the expiration or earlier

 

 

26

 

termination of the Lease term, by Tenant at its sole cost or if Tenant
fails to do so, by Landlord at Tenant’s sole cost with the cost thereof to be
paid as additional rent. Landlord shall have the right, however, upon written
notice to Tenant given no later than thirty (30) days prior to the expiration
or earlier termination of the Lease term (except that the notice period shall
extend to thirty (30) days beyond the date of termination of the Lease if it is
terminated by either party due to a default by the other), to require Tenant to
abandon and leave in place, without additional payment to Tenant or credit
against rent, any and all Electronic Services Lines and related infrastructure,
or selected components thereof, whether located in the Tenant’s premises or
elsewhere in the Building.

 

26.07       New Provider Installations. In the event that Tenant wishes at any time to
utilize the services of an Electronic Services Provider whose equipment is not
then servicing the Building, no such Electronic Services Provider shall be
permitted to install its Lines or other equipment within the Building without
first securing the prior written approval of the Landlord which will not be
unreasonably withheld or conditioned. Landlord’s approval shall not be deemed any
kind of warranty or representation by Landlord, including, without limitation,
any warranty or representation as to the suitability, competence, or financial strength
of the Electronic Services Provider. Without limitation of the foregoing
standard, unless all of the following conditions are satisfied to Landlord’s
satisfaction, it shall be reasonable for Landlord to refuse to give its
approval: (i) Landlord shall incur no current expense or risk or future expense
whatsoever with respect to any aspect of the Electronic Services Provider’s
provision of its Electronic Services, including without limitation, the costs
of installation, materials and services; (ii) prior to commencement of any
work in or about the Building by the Electronic Services Provider, the
Electronic Services Provider shall supply Landlord with such written
indemnities, insurance, financial statements, and such other items as Landlord
reasonably determines to be necessary to protect its financial interests and
the interests of the Building relating to the proposed activities of the
Electronic Services Provider; (iii) the Electronic Services Provider agrees
to abide by such rules and regulations, Building and other codes, job site
rules and such other requirements as are reasonably determined by Landlord
to be necessary to protect the interests of the Building, the Tenants in the
Building and Landlord, in the same or similar manner as Landlord has the right
to protect itself and the Building with respect to proposed alterations as
described in Article IX of this Lease; (iv) Landlord reasonably
determines that, considering other potential uses for space in the Building,
there is sufficient space in the Building for the placement of all of the provider’s
equipment, conduit, Lines and other materials; (v) the Electronic Services
Provider agrees to abide by Landlord’s requirements, if any, that provider use
existing Building conduits and pipes or use Building contractors (or other
contractors approved by Landlord); (vi) Landlord receives from the
Electronic Services Provider such compensation as is reasonably determined by
Landlord to compensate it for space used in the Building for the storage and maintenance
of the Electronic Services Provider’s equipment, for the fair market value of a
Electronic Services Provider’s access  to
the Building, for the use of common or core space within the Building and the
costs which may reasonably be expected to be incurred by Landlord; (vii) the
provider agrees to deliver to Landlord detailed “as built” plans immediately
after the installation of the provider’s equipment is complete; and (viii) all
of the foregoing matters are documented in a written license agreement between
Landlord and the provider, the form and content of which is reasonably
satisfactory to Landlord.

 

26.08       Limit of Default or Breach. Notwithstanding any provision of the proceeding
paragraphs to the contrary, the refusal of Landlord to grant its approval to
any prospective Electronic Services Provider shall not be deemed a default or breach
by Landlord of its obligation under this Lease unless and until Landlord is
adjudicated to have acted unreasonably with respect to Tenant’s request for
approval, and in that event, Tenant shall still have no right to terminate the
Lease or claim an entitlement to rent abatement, but may as Tenant’s sole and
exclusive recourse seek a judicial order of specific performance compelling
Landlord to grant its approval as to the prospective provider in question. The
provisions of this paragraph may be enforced solely by Tenant and Landlord, are
not for the benefit of any other party, and specifically but without
limitation, no telephone or other Electronic Services Provider shall be deemed
a third party beneficiary of this Lease.

 

26.09       Installation and Use of Wireless Technologies. Tenant shall not utilize any wireless Electronic
Services equipment (other than usual and customary cellular telephones),
including antennae and satellite receiver dishes, within the Tenant’s premises,
within the Building or attached to the outside walls or roof of the Building,
without Landlord’s prior written consent. Such consent may be conditioned in
such a manner so as to protect Landlord’s financial interests and the interests
of the Building, and the other tenants therein, in a manner similar to the
arrangements described in the immediately preceding paragraphs.

 

 

27

 

26.10       Limitation of Liability For Equipment Interference.
In the event that Electronic Services equipment, Lines and facilities or
satellite and antennae equipment of any type installed by or at the request of
Tenant within the Tenant’s premises, on the roof, or elsewhere within or on the
Building causes interference to equipment used by another party, Tenant shall
cease using such equipment, Lines and facilities or satellite and antennae
equipment until the source of the interference is identified and eliminated and
Tenant shall assume all liability related to such interference. Tenant shall
cooperate with Landlord and other parties, to eliminate such interference
promptly. In the event that Tenant is unable to do so, Tenant will substitute
alternative equipment which remedies the situation. If such interference
persists, Tenant shall, at Landlord’s sole discretion, remove such equipment.

 

ARTICLE
XXVII - PARKING

 

27.01       During the term of this Lease, Tenant
shall be entitled to rent the number of Tenant’s Parking Stalls, if any,
described in Section 1.16 of this Lease in the parking facilities located
within the Building. Such parking shall be on a non-assigned basis, and shall
be at such rates and upon such other terms and conditions as are published or
posted from time to time by Landlord (or, at Landlord’s option, the operator or
lessee of the parking facilities). Tenant’s visitors shall have the right to
use the parking facilities, subject to availability and to the rates,
rules and regulations governing visitor parking from time to time adopted
by Landlord (or, at Landlord’s option, the operator or master lessee of the
parking facilities). Landlord shall provide one hour free parking to Tenant’s
customers and visitors; thereafter, the Building’s standard rates shall apply.

 

ARTICLE
XXVIII - MISCELLANEOUS

 

28.1         Entire Agreement. This Lease
contains all of the agreements and understandings relating to the leasing of
the Premises and the obligations of Landlord and Tenant in connection with such
leasing. Landlord has not made, and Tenant is not relying upon, any warranties,
or representations, promises or statements made by Landlord or any agent of
Landlord, except as expressly set forth herein. This Lease supersedes any and
all prior agreements and understandings between Landlord and Tenant and alone
expresses the agreement of the parties.

 

28.2         Amendments. This Lease shall not be
amended, changed or modified in any way unless in writing executed by Landlord
and Tenant. Landlord shall not have waived or released any of its rights
hereunder unless in writing and executed by Landlord.

 

28.03       Successors. Except as expressly
provided herein, this Lease and the obligations of Landlord and Tenant
contained herein shall bind and benefit the successors and assigns of the
parties hereto.

 

28.04       Force Majeure. Landlord shall incur
no liability to Tenant with respect to, and shall not be responsible for any
failure to perform, any of Landlord’s obligations hereunder if such failure is
caused by any reason beyond the control of Landlord including, but not limited
to, strike, labor trouble, governmental rule, regulations, ordinance, statute
or interpretation, or by fire, earthquake, civil commotion, of failure or
disruption of utility services. The amount of time for Landlord to perform any
of Landlord’s obligations shall be extended by the amount of time Landlord is
delayed  in performing such obligation by reason
of any force majeure occurrence whether similar to or different from the
foregoing types of occurrences.

 

28.05       Survival of Obligations. Any
obligations of Tenant accruing prior to the expiration of the Lease shall
survive the expiration or earlier termination of the Lease, and Tenant shall
promptly perform all such obligations whether or not this Lease has expired or
been terminated.

 

28.06       Light and Air. No diminution or
shutting off of any light, air or view by any structure now or hereafter
erected shall in any manner affect this Lease or the obligations of Tenant
hereunder, or increase any of the obligations of Landlord hereunder.

 

 

28

 

28.07       Governing Law. This Lease shall be
governed by, and construed in accordance with, the laws of the State of
California.

 

28.08       Severability. In the event any
provision of this Lease is found to be unenforceable, the remainder of this
Lease shall not be affected, and any provision found to be invalid shall be
enforceable to the extent permitted by law. The parties agree that in the event
two different interpretations may be given to any provision hereunder, one of
which will render the provision unenforceable, and one of which will render the
provision enforceable, the interpretation rendering the provision enforceable
shall be adopted.

 

28.09       Captions. All captions, headings, titles,
numerical references and computer highlighting are for convenience only and
shall have no effect on the interpretation of this Lease.

 

28.10       Interpretation. Tenant acknowledges
that it has read and reviewed this Lease and that it has had the opportunity to
confer with counsel in the negotiation of this Lease. Accordingly, this Lease
shall be construed neither for nor against Landlord or Tenant, but shall be
given a fair and reasonable interpretation in accordance with the meaning of
its terms and the intent of the parties.

 

28.11       Independent Covenants. Each
covenant, agreement, obligation or other provision of this Lease to be
performed by Tenant are separate and independent covenants of Tenant, and not
dependent on any other provision of the Lease.

 

28.12       Number and Gender. All terms and
words used in this Lease, regardless of the number or gender in which they are
used, shall be deemed to include the appropriate number and gender, as the
context may require.

 

28.13       Time is of the Essence. Time is of
the essence of this Lease and the performance of all obligations hereunder.

 

28.14       Joint and Several
Liability. If Tenant comprises more than one person or entity, or if
this Lease is guaranteed by any party, all such persons shall be jointly and
severally liable for payment of rents and the performance of Tenant’s
obligations hereunder. If Tenant comprises more than one person or entity and
fewer than all of the persons or entities comprising Tenant abandon the
Premises, Landlord, at its sole option, may treat the abandonment by such
person or entities as an event of default and exercise with respect to such
persons the rights and remedies provided in Article XV without affecting
the right or obligations of the persons or entities comprising Tenant which have
not abandoned the property.

 

28.15       Exhibits. Exhibits A (Outline of
Premises), B (Work Letter Agreement), C (Rules and Regulations), D
(Guaranty), E (Suite Acceptance Letter), and Addendum are incorporated
into this Lease by reference and made a part hereof.

 

28.16       Offer to Lease. The submission of
this Lease to Tenant or its broker or other agent, does not constitute an offer
to Tenant to lease the Premises. This Lease shall have no force and effect
until (a) it is executed and delivered by Tenant to Landlord and (b) it is
fully reviewed and executed by Landlord.

 

28.17       No Counterclaim; Choice of Laws In
addition, Tenant hereby submits to local jurisdiction in the State of
California and agrees that any action by Tenant against Landlord shall be
instituted in the State of California and that Landlord shall have personal
jurisdiction over Tenant for any action brought by Landlord against Tenant in
the State of California.

 

28.18       Electrical Service to the Premises.
Anything set forth in Section 7.01 or elsewhere in this Lease to the
contrary notwithstanding, electricity to the Premises shall not be furnished by
Landlord, but shall be furnished by the approved electric utility company
serving the Building. Landlord shall permit Tenant to receive such service
directly from such utility company at Tenant’s cost (except as otherwise
provided herein) and shall permit Landlord’s wire and conduits, to the extent
available, suitable and safely capable, to be used for such purposes.

 

 

29

 

28.19       Rights Reserved by Landlord. Landlord
reserves the following rights exercisable without notice (except as otherwise
expressly provided to the contrary in this Lease) and without being deemed an
eviction or disturbance of Tenant’s use or possession of the Premises or giving
rise to any claim for set-off or abatement of Rent: (i ) to change the name or
street address of the Building; (ii) to install, affix and maintain all
signs on the exterior and/or interior of the Building; (iii) to designate
and/or approve prior to installation, all types of signs, window shades,
blinds, drapes, awnings or other similar items, and all internal lighting that
may be visible from the exterior of the Premises and, notwithstanding the
provisions of Article IX, the design, arrangement, style, color and
general appearance of the portion of the Premises visible from the exterior, and
contents thereof, including, without limitation, furniture, fixtures, signs,
art work, wall coverings, carpet and decorations, and all changes, additions
and removals thereto, shall, at all times have the appearance of premises
having the same type of exposure and used for substantially the same purposes
that are generally prevailing in comparable office buildings in the area;
(iv) to change the arrangement of entrances, doors, corridors, elevators
and/or stairs in the Building, provided no such  change shall materially adversely affect access to
the Premises; (v) to grant any party the exclusive fight to conduct any
business or render any service in the Building, provided such exclusive right
shall not operate to prohibit Tenant from using the Premises for the purposes
permitted under this Lease; (vi) to prohibit the placement of vending or
dispensing machines of any kind in or about the Premises other than for use by
Tenant’s employees; (vii) to prohibit the placement of video or other
electronic games in the Premises; (viii) to have access for Landlord and
other tenants of the Building to any mail chutes and boxes located in or on the
Premises according to the rules of the United States Post Office and to
discontinue any mail chute business in the Building; (ix) to close the
Building after normal business hours, except that Tenant and its employees and
invitees shall be entitled to admission at all times under such rules and
regulations as Landlord prescribes for security purposes; (x) to install,
operate and maintain security systems which monitor, by close circuit
television or otherwise, all persons entering or leaving the Building; (xi) to
install and maintain pipes, ducts, conduits, wires and structural elements
located in the Premises which serve other parts or other tenants of the
Building; and (xii) to retain at all times master keys or pass keys to the
Premises; (xiii) to establish and, from time to time, to change, alter and
amend, and to enforce, against Tenant and the other users of the common areas,
including automobile parking areas and structures, the parking spaces therein,
driveways, entrances and exits and the sidewalks and pedestrian passageways,
such reasonable rules and regulations as may be deemed necessary or
advisable by Landlord for the proper and efficient operation and maintenance of
the common areas

 

IN WITNESS WHEREOF, the parties hereto have
executed this lease as of the date first above written.

 

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  2140 Lake, LLC.

  a Delaware limited liability company

  	
   

  	
  Wilshire State Bank,

  a California Banking
  Corporation

  
	
   

  	
   

  	
   

  
	
  By: Jamison
  Services, Inc.

  a California corporation

  Its: Authorized Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David Kim

  
	
   

  	
   

  	
   

  	
  David Kim

  
	
  By:

  	
  /s/ Paul T. Kim

  	
   

  	
  Its:

  	
  Sr. Vice President

  
	
   

  	
  Paul T. Kim, C.P.M.

  	
   

  	
   

  
	
   

  	
  President

  	
   

  	
   

  

 

 

30

 

EXHIBIT A

 

FLOOR PLAN TO BE ATTACHED

 

 

EXHIBIT B

INTENTIONALLY OMITTED

 

 

EXHIBIT
C

RULES
AND REGULATIONS

 

1.             The sidewalks, entrances, passages,
courts, elevators, vestibules, stairways, corridors or halls shall not be
obstructed or used for any purpose other than ingress and egress. The halls,
passages, entrances, elevators, stairways, balconies and roof are not for the
use of the general public, and Landlord shall in all cases retain the right to
control or prevent access thereto by all persons whose presence in the judgment
of Landlord shall be prejudicial to the safety, character, reputation or
interests of Landlord and its tenants, provided that nothing herein contained
shall be construed to prevent such access by persons with whom the tenant
normally deals in the ordinary course of its business unless such persons are
engaged in illegal activities. No tenant and no employees of any tenant shall go
upon the roof of the Building without the written consent of Landlord.

 

2.             No awnings or other projections
shall be attached to the outside walls or surfaces of the Building nor shall
the interior or exterior of any windows be coated without the prior written
consent of Landlord. Except as otherwise specifically approved by Landlord, all
electrical ceiling fixtures hung in offices or spaces along the perimeter of
the Building must be fluorescent and of a quality, type, design and bulb color
approved by Landlord. Tenant shall not place anything or allow anything to be
placed near the glass of any window, door, partition or wall which may appear
unsightly from outside the Premises.

 

3.             No sign, picture, plaque,
advertisement, notice or other material shall be exhibited, painted, inscribed or
affixed by any tenant on any part of, or so as to be seen from the outside of, the
Premises or the Building without the prior written consent of Landlord. In the
event of the violation of the foregoing by any tenant, Landlord may remove the
same without any liability, and may charge the expense incurred in such removal
to the tenant violating this rule. Interior signs on doors and the directory
tablet shall be inscribed, painted or affixed for each tenant by Landlord at
the expense of such tenant, and shall be of a size, color and style acceptable
to Landlord.

 

4.             The toilets and wash basins and
other plumbing fixtures shall not be used for any purpose other than those for
which they were constructed, and no sweepings, rubbish, rags or other substances
shall be thrown therein. All damage resulting from any misuse of the fixtures
shall be borne by tenant who, or whose servants, employees, agents, visitors or
licensees, shall have caused the same.

 

5.             No tenant or its officers, agents, employees
or invitees shall mark, paint, drill into, or in any way deface any part of the
Premises or the Building. No boring, cutting or stringing of wires or laying of
linoleum or other similar floor coverings shall be permitted except with the
prior written consent of Landlord and as Landlord may direct.

 

6.             No bicycles, vehicles or animals of
any kind shall be brought into or kept in or about the Premises and no cooking
shall be done or permitted by any tenant on the Premises except that microwave
cooking in a UL approved microwave oven and the preparation of coffee, tea, hot
chocolate and similar items for the tenant and its employees and business
visitors shall be permitted. Tenant shall not cause or permit any unusual or
objectionable odors to escape from the Premises.

 

7.             The Premises shall not be used for
manufacturing or for the storage of merchandise except as such storage may be
incidental to the use of the Premises for general office purposes. No tenant
shall engage or pay any employees on the Premises except those actually working
for such tenant on the Premises nor advertise for laborers giving an address at
the Premises. The Premises shall not be used for lodging or sleeping or for any
immoral or illegal purposes.

 

8.             No tenant or its officers, agents,
employees or invitees shall make, or permit to be made any unseemly or
disturbing noises, sounds or vibrations or disturb or interfere with occupants
of this or neighboring buildings or Premises or those having business with them
whether by the use of any musical instrument, radio, phonograph, unusual noise,
or in any other way.

 

 

9.             No tenant or its
officers, agents, employees or invitees shall throw anything out of doors,
balconies or down the passageways.

 

10.           Tenant shall not maintain armed
security in or about the Premises nor possess any weapons, explosives,
combustibles or other hazardous devices in or about the Building and/or
Premises.

 

11.           No tenant or its officers, agents,
employees or invitees shall at any time use, bring or keep upon the Premises
any flammable, combustible, explosive, foul or noxious fluid, chemical or
substance, or do or permit anything to be done in the leased Premises, or bring
or keep anything therein, which shall in any way increase the rate of fire
insurance on the Building, or on the property kept therein, or obstruct or
interfere with the rights of other tenants, or in any way injure or annoy them,
or conflict with the regulations of the Fire Department or the fire laws, or
with any insurance policy upon the Building, or any part thereof, or with any
rules and ordinances established by the Board of Health or other
governmental authority.

 

12.           No additional locks or bolts of any
kind shall be placed upon any of the doors or windows by any tenant, nor shall
any changes be made in existing locks or the mechanism thereof. Each tenant
must, upon the termination of this tenancy, restore to Landlord all keys of
stores, offices, and toilet rooms, either furnished to, or otherwise procured
by, such tenant, and in the event of the loss of any keys so furnished, such
tenant shall pay to Landlord the cost of replacing the same or of changing the
lock or locks opened by such lost key if Landlord shall deem it necessary to
make such change.

 

13.           All removals, or the carrying in or
out of any safes, freight, furniture, or bulky matter of any description must
take place during the hours which Landlord may determine form time to time. The
moving of safes or other fixtures or bulky matter of any kind must be made upon
previous notice to the manager of the Building and under his or her
supervision, and the persons employed by any tenant for such work must be
acceptable to Landlord. Landlord reserves the right to inspect all safes,
freight or other bulky articles to be brought into the Building and to exclude
from the Building all safes, freight or other bulky articles which violate any
of these Rules and Regulations or the Lease of which these Rules and
Regulations are a part. Landlord reserves the right to prohibit or impose
conditions upon the installation in the Premises of heavy objects which might overload
the building floors. Landlord will not be responsible for loss of or damage to
any safes, freight, bulky articles or other property from any cause, and all
damage done to the Building by moving or maintaining any such safe or other
property shall be repaired at the expense of the tenant.

 

14.           No tenant shall purchase or otherwise
obtain for use in the Premises water, ice, towel, vending machine, janitorial,
maintenance or other like services, or accept barbering or bootblacking
services, except from persons authorized by Landlord, and at hours and under
regulations fixed by Landlord.

 

15.           Landlord shall have the right to
prohibit any advertising by any tenant which, in Landlord’s opinion, tends to
impair the reputation of the Building or its desirability as an office building
and upon written notice from Landlord any tenant shall refrain from or
discontinue such advertising. No tenant shall use any graphic image of the
Building or any part of the Building for advertising or public relations
without Landlord’s written permission.

 

16.           Landlord reserves the right to
exclude from the Building between the hours of 10:00 p.m. and
7:00 a.m. and at all hours of Saturdays, Sundays and legal holidays all
persons who do not present a pass signed by Landlord. Landlord shall furnish
passes to persons for whom any tenant requests the same in writing. Each tenant
shall be responsible for all persons for whom he requests passes 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 commotion, Landlord reserves the right to prevent access to
the Building during the continuance of the same, by closing of the gates and
doors or otherwise, for the safety of the tenants and others and the protection
of the Building and the property therein.

 

17.           Any outside contractor employed by
any tenant, shall, while in the Building, be subject to the prior written
approval of Landlord and subject to the Rules and Regulations of the
Building. Tenant shall be responsible

 

 

for all acts of such persons and Landlord shall not be
responsible for any loss or damage to property in the Premises, however
occurring.

 

18.               All doors opening onto public
corridors shall be kept closed, except when in use for ingress and egress, and
left locked when not in use.

 

19.               The requirements of tenants will
be attended to only upon application to the Office of the Building.

 

20.               Canvassing, soliciting and peddling
in the Building are prohibited and each tenant shall cooperate to prevent the
same.

 

21.               All office equipment of any
electrical or mechanical nature shall be placed by tenants in the Premises in
setting approved by Landlord,to absorb or prevent any vibration, noise or
annoyance.

 

22.               No air conditioning unit or other
similar apparatus shall be installed or used by any tenant without the written
consent of Landlord.

 

23.           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.

 

24.               Landlord will direct electricians
as to where and how telephone and telegraph wires are to be introduced. No
boring or cutting for wires or stringing of wires will be allowed without written
consent of Landlord. The location of telephones, call boxes and other office
equipment affixed to the Premises shall be subject to the approval of Landlord.
All such work shall be effected pursuant to permits issued by all applicable
governmental authorities having jurisdiction.

 

25.               No vendor with the intent of
selling such goods shall be allowed to transport or carry beverages, food, food
containers, etc., on any passenger elevators. The transportation of such items
shall be via the service elevators in such manner as prescribed by Landlord.

 

26.               Tenants shall cooperate with Landlord
in the conservation of energy used in or about the Building, including without
limitation, cooperating with Landlord in obtaining maximum effectiveness of the
cooling system by closing drapes or other window coverings when the sun’s rays fall
directly on windows of the Premises, and closing windows and doors to prevent
heat loss. Tenant shall not obstruct, alter or in any way impair the efficient
operation of Landlord’s heating, lighting, ventilating and air conditioning
system and shall not place bottles, machines, parcels or any other articles on
the induction unit enclosure so as to interfere with air flow. Tenant shall not
tamper with or change the setting of any thermostats or temperature control
valves, and shall in general use heat, gas, electricity, air conditioning
equipment and heating equipment in a manner compatible with sound energy
conservation practices and standards.

 

27.               All parking ramps and areas,
pedestrian walkways, plazas, and other public areas forming a part of the Building
shall be under the sole and “absolute control of Landlord with the exclusive
right to regulate and control these areas. Tenant agrees to conform to the
rules and regulations that may be established by Landlord for these areas
from time to time.

 

28.               Landlord reserves the right to
exclude or expel from the Building any person who, in the judgment of Landlord,
is intoxicated or under the influence of liquor or drugs, or who shall in any manner
do any act in violation of any of the rules and regulations of the
Building.

 

29.               Tenant and its employees, agents,
subtenants, contractors and invitees shall comply with all applicable “no-smoking”
ordinances and, irrespective of such ordinances, shall not smoke or permit
smoking of cigarettes, cigars or pipes outside of Tenant’s Premises (including
plaza areas) in any portions of the Building except areas specifically
designated as smoking areas by Landlord. If required by applicable ordinance, Tenant
shall provide smoking areas within Tenant’s Premises.

 

 

EXHIBIT D

INTENTIONALLY OMITTED

 

 

EXHIBIT E

SUITE
ACCEPTANCE AGREEMENT

 

Building
Name/Address: 2140 Olympic Boulevard, Los Angeles California

 

Tenant
Name: Wilshire State Bank

 

Tenant Code:                                                    Suite Number:
100

 

Management’s Tenant Contact:                                                      Phone:

 

Gentlemen:

 

As a representative of the above referenced tenant,
I/we have physically inspected the suite noted above and its improvements with                                    ,
a representative of 2140 Lake LLC. I/we accept the suite improvements as to
compliance with all the requirements indicated in our lease, also including the
following verified information below:

 

	
  Lease Commencement Date:

  	
   

  	
  Occupancy Date:

  
	
   

  	
   

  	
   

  
	
  Lease Rent Start Date*:

  	
   

  	
  Actual Rent Start*:

  
	
   

  	
   

  	
   

  
	
  Lease Expiration Date:

  	
   

  	
  Actual Expiration Date:

  

 

Date Keys Delivered: Tenant currently has possession
of the Premises and has their own keys.

 

Items requiring
attention: 

 

 

*If these dates are not the same, attach
documentation.

 

NOTE: This inspection is to be made prior to tenant
move-in. 

 

Very truly yours,

 

	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  

 

Distribution

Tenant

Tenant Lease File

Leasing Manager:

Document Control:

Regional Construction Manager:

Regional Engineering Manager:

 

 

EXHIBIT F

ASBESTOS NOTIFICATION

 

NOTICE PURSUANT TO AB3713

CALIFORNIA HEALTH & SAFETY CODE 25915 ET SEQ.

 

Re: 2140 West Olympic Boulevard, Los Angeles,
California (Building)

 

California legislation
requires landlords and tenants of commercial buildings constructed prior to
1979 to notify each other and their respective employees working within such
building of any knowledge they may have regarding any asbestos containing
construction material in the building. This notice is to provide you with the information
required under this legislation.

 

Certain tests to
determine the existence of asbestos containing construction materials have been
conducted. The results of these tests, which are summarized below, indicate
that there are asbestos containing construction materials in the Buildings.
Some of these materials in some locations have been abated (removed) by the
prior owner of the Buildings.

 

The specific locations
within the Building where asbestos containing construction materials have been
identified by the reports as being present in any quantities are as follows:

 

The fire proofing on the
mechanical equipment.

Some of the vinyl floor tiles
located throughout the Buildings.

Finished wallboard/joint
compound

Acoustical ceiling panels

Composition roofing materials

 

The general procedures
and handling restrictions necessary to minimize any disturbance to, release of
and exposure to the asbestos are:

 

1.                                       No work is to be performed above the
suspended ceiling line of any floor without prior authorization from the Office
of the Building.

2.                                       No work is to be performed on vinyl floor
tiles without prior authorization from the Office of the Building.

3.                                       No work is to be performed on the
acoustic ceiling material in the lobby of the Buildings without prior
authorization from the Office of the Building.

4.                                       Access to any and all equipment rooms
(including electrical and telephone rooms) is strictly prohibited, except to
personnel authorized by the Office of the Building.

 

We have no special
knowledge concerning the potential health risks or impacts that may result from
exposure to asbestos in the Buildings, but we understand that potential health
risks may exist if asbestos fibers are released from asbestos containing
construction materials. Those of you that may require additional information of
potential health risks are encouraged to contact appropriate government
agencies, including Federal and State OSHA, State Health & Welfare
Agency, State Department of Health Services and the County Health Departments.

 

If there are any
questions regarding this notice, please contact the Property Manager at 2140
West Olympic Boulevard, Suite 325, Los Angeles, CA 90010.

 

 

ADDENDUM

 

This
Addendum to Lease (“Addendum”)  is made and entered into as of July 31,
2009 (the “Effective Date”) by and between 2140 Lake, LLC, a
Delaware limited liability company, c/o Jamison Services, Inc. a California
corporation,  (“Landlord”)  and Wilshire State Bank, a California Banking
Corporation (“Tenant”).

 

In the event of
any conflict between this Addendum and the Lease, the provisions of this
Addendum shall prevail.

 

1.              Option to Extend Lease Term. Provided Tenant is not in default under
any term or provision contained in this Lease beyond any applicable notice and
cure period, and is in possession of the Premises at the time Tenant exercises
its option, Tenant shall have two (2) options to extend the Lease Term (“Extension
Option”)  for a period
of five (5) years each (“Option Term”)  for all of the space then under the Lease under the
same terms and conditions except for the Base Monthly Rent and parking fees. If
Tenant wishes to exercise an Extension Option, Tenant shall deliver written
notice to Landlord no less than six (6) months prior to the expiration of
the then existing Lease Term (“Exercise Notice”).
If Tenant fails to timely deliver the Exercise Notice, Tenant shall be
considered to have elected not to exercise the Extension Option.

 

The
Base Monthly Rent payable during the Option Term shall be 95% of the then
prevailing Fair Market Rental (“FMR”). For the
purposes of this Section 1, “Fair Market Rental” is the rental rate,
determined in accordance with this Section 1, at which tenants are leasing
comparable space on the Lease Expiration Date. For this purpose, comparable
space (“Comparable Space”)  shall
take into account factors including but not limited to:

 

(a)       Not subleased;

(b)      Not subject to another tenant’s expansion rights;

(c)       Comparable in size, location, and quality to the
Premise;

(d)      Leased for a term comparable to Tenant’s lease of the
Premises;

(e)       Similar in use/purpose; and

(f)   Located in the Building and in other comparable office
buildings and office building projects located in the Los Angeles Mid-Wilshire
Districts.

 

Landlord and Tenant
shall have until the date that is sixty (60) days following the date that Landlord
receives Tenant’s Exercise Notice to mutually agree upon the Fair Market Value
for the Option Term. Except for Base Monthly Rent at the new rate, all of the
terms and conditions of the Lease shall remain the same and shall remain in
full force and effect throughout the Option Term; provided, however, that any
free rent, improvement allowances, moving allowances, lease assumption
payments, plan design allowances (or payments), expansion options, opportunity
rights or other similar concessions provided for in the Lease shall not apply
during any Option Term. In the event Tenant does not agree to the rental rate
for the Option Term during said sixty (60) day period, then the Extension
Option shall terminate and be null and void and the Lease shall, pursuant to
its terms and provisions terminate at the end of the original Lease Term.

 

The rights
contained in this Section 1 shall be personal to the originally named
Tenant and may be exercised only by the originally named Tenant (and not any
assignee, sublessee, or other transferee of Tenant’s interest in this Lease)
and only if the originally named Tenant occupies the entire Premises as of the
date it exercises the Extension Option in accordance with the terms of this
section.

 

2.             Option to Terminate. Tenant shall have the one-time right (“Termination
Option”)  to
terminate this Lease on the last day of the eighty fourth (84th) month of Lease Term (“Termination Date”),  upon the following terms and
conditions (and if such terms and conditions are not fully satisfied, the
Termination Option shall be null and void with no further force and effect):

 

(a)           Tenant shall give Landlord written notice
(the “Termination Notice”)  of
Tenant’s election to exercise the Termination Option on or before nine (9) months
prior to the Termination Date. The termination shall be effective as of the
Termination Date.

 

 

(b)           There is no Event of Default beyond any
applicable cure period by Tenant either on the date that Tenant exercises the
Termination Option, or at any time prior to the Termination Date; and

 

(c)           With the delivery of the Termination Notice,
Tenant shall pay to Landlord an amount equal to five (5) months of the Base
Rent that would have been due for the five (5) month period after the Termination
Date.

 

In
the event Tenant timely and properly exercises the Termination Option, the term
of the Lease shall terminate effective as of the Termination Date. Basic
Monthly Rent and all other monetary obligations under the Lease shall be paid
through and apportioned as of the Termination Date, and neither Landlord nor
Tenant shall have any rights, liabilities or obligations accruing under the
Lease, after the Termination Date, except for such rights and liabilities
which, by the terms of the Lease are obligations of the Tenant or Landlord
which expressly survive the expiration of the Lease. The Termination Option shall
automatically terminate and become null and void upon (i) the failure of Tenant
to timely or properly exercise the Termination Option; or (ii) Tenant’s
right to possession of the Premises being terminated prior to the exercise of
the Termination Option.

 

The
rights contained in this Section 2 shall be personal to the originally
named Tenant and may be exercised only by the originally named Tenant (and not
any assignee, sublessee, or other transferee of Tenant’s interest in this
Lease) and only if the originally named Tenant occupies at least seventy five
percent (75%) of the Existing Premises as of the date it exercises the
Termination Option in accordance with the terms of this section. Notwithstanding
the foregoing, Tenant’s subsidiaries and Affiliates shall also have the right
to exercise the Extension Options. For purposes of this provision, the term “Affiliate”
shall mean any corporation or other entity controlling, controlled by, or under
common control with (directly or indirectly) Tenant, including, without
limitation, any parent corporation controlling Tenant or any subsidiary that
Tenant controls.

 

3.             Exterior Signage. At no additional charge, Tenant shall
have the right, at Tenant’s sole cost and expense, to install exterior Building
signage subject to approval by the appropriate governmental agencies and
Landlord’s approval which shall not be unreasonably withheld. Notwithstanding
the foregoing, Tenant shall have the right to all signage positions granted to
the current tenant, Mirae Bank, other than the building top signage. Tenant
shall also have the right to remove, at Tenant’s sole cost and expense, any
signs granted to the current tenant, Mirae Bank. In the event Tenant removes an
existing sign, Landlord shall not grant rights to other tenants for the same or
comparable signage positions.

 

All
signage contemplated under this Section 3, shall be made, installed,
maintained and removed at Tenant’s sole cost and expense. Tenant shall abide by
all governmental laws, codes, rules and regulations and pay costs associated
therewith, including all permit fees. On termination or expiration of the Lease
Term, Tenant shall be responsible for the removal of all signage and repair any
damage caused by such removal, and shall be responsible for the restoration of
the sites on the Building to the condition in which those portions of the
Building existed before the installation of the signage. If Tenant fails to
perform said obligation upon termination or expiration of the Lease, Landlord
shall have the right to permanently remove the signage, repair any damage
caused by such removal and restore those parts of the Building on which the
signage was located to the condition that existed before the installation of
the signage. Tenant shall pay to Landlord all expenses incurred by Landlord in
connection with the removal, repair and restoration of the signage. The rights
set forth in this Section 3 are personal to Tenant and may not be assigned
to any party

 

Except as amended herein,
all other provisions of the Lease remain in full force and effect. This
Addendum shall control in the event of any inconsistency with the original
Lease.

 

IN
WITNESS WHEREOF, the
parties hereto have executed this Addendum as of the date first above written.

 

 

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
  2140
  Lake, LLC

  a Delaware limited liability company

  	
  Wilshire
  State Bank

  a California Banking
  Corporation

  
	
   

  	
   

  
	
  By:
  Jamison Services, Inc.,

  a California corporation

  Its: Authorized Agent 

  	
   

  

 

	
   

  	
  By:

  	
  /s/ David Kim

  
	
   

  	
   

  	
  David Kim

  
	
   

  	
  Its:

  	
  Sr. Vice President

  
	
  By:

  	
  /s/ Paul T. Kim

  	
   

  	
   

  
	
   

  	
  Paul
  T. Kim, C.P.M.

  	
   

  	
   

  
	
   

  	
  PresidentExhibit 10.29

 

CONCEPTUS, INC.

 

TWELFTH
AMENDED AND RESTATED

2001
EQUITY INCENTIVE PLAN

 

2001
Equity Incentive Plan

Adopted
by the Board: March 21, 2001

Approved
by Stockholders: May 16, 2001

 

Amended
and Restated Equity Incentive Plan

Adopted by the Board: March 2002

Approved
by Stockholders: May 30, 2002

 

Second
Amended and Restated Equity Incentive Plan

Adopted
by the Board: April 2003

Approved
by Stockholders: June 10, 2003

 

Third
Amended and Restated Equity Incentive Plan

Adopted
by the Board: March 2004

Approved
by Stockholders: June 1, 2004

 

Amendment
to Third Amended and Restated Equity Incentive Plan

Adopted
by the Board: March 2004

Approved
by Stockholders: June 1, 2004

 

Fourth
Amended and Restated Equity Incentive Plan

Adopted
by the Board: November 30, 2004

 

Fifth
Amended and Restated Equity Incentive Plan

Adopted
by the Board: January 5, 2005

 

Sixth
Amended and Restated Equity Incentive Plan

Adopted
by the Board: December 16, 2005

 

Seventh
Amended and Restated Equity Incentive Plan

Adopted
by the Board: February 10, 2006

 

Eighth
Amended and Restated Equity Incentive Plan

Adopted
by the Board: April 2006

Approved
by Stockholders: June 7, 2006

 

Ninth
Amended and Restated Equity Incentive Plan

Adopted
by the Board: April 12, 2007

 

Tenth
Amended and Restated Equity Incentive Plan

Adopted
by the Board: April 28, 2008

Approved by Stockholders: June 4,
2008

 

Eleventh Amended and
Restated Equity Incentive Plan

Adopted by the Board: October 1,
2008

 

Twelfth Amended and Restated
Equity Incentive Plan

Adopted by the Board: February
25, 2010

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  PURPOSES OF
  THE PLAN

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
  3.

  	
  STOCK SUBJECT
  TO THE PLAN

  	
  5

  
	
   

  	
   

  	
   

  
	
  4.

  	
  ADMINISTRATION
  OF THE PLAN

  	
  5

  
	
   

  	
   

  	
   

  
	
  5.

  	
  ELIGIBILITY

  	
  7

  
	
   

  	
   

  	
   

  
	
  6.

  	
  LIMITATIONS

  	
  7

  
	
   

  	
   

  	
   

  
	
  7.

  	
  TERM OF PLAN

  	
  7

  
	
   

  	
   

  	
   

  
	
  8.

  	
  TERM OF AWARDS

  	
  7

  
	
   

  	
   

  	
   

  
	
  9.

  	
  OPTION
  EXERCISE PRICE AND CONSIDERATION

  	
  8

  
	
   

  	
   

  	
   

  
	
  10.

  	
  EXERCISE OF
  OPTION;

  	
  9

  
	
   

  	
   

  	
   

  
	
  11.

  	
  NON-TRANSFERABILITY
  OF OPTIONS AND STOCK PURCHASE RIGHTS

  	
  11

  
	
   

  	
   

  	
   

  
	
  12.

  	
  GRANTS OF
  AWARDS TO INDEPENDENT DIRECTORS

  	
  12

  
	
   

  	
   

  	
   

  
	
  13.

  	
  RESTRICTED
  STOCK; STOCK PURCHASE RIGHTS

  	
  12

  
	
   

  	
   

  	
   

  
	
  14.

  	
  RESTRICTED
  STOCK UNITS

  	
  13

  
	
   

  	
   

  	
   

  
	
  15.

  	
  STOCK APPRECIATION  RIGHTS

  	
  14

  
	
   

  	
   

  	
   

  
	
  16.

  	
  OTHER AWARDS

  	
  15

  
	
   

  	
   

  	
   

  
	
  17.

  	
  ADJUSTMENTS
  UPON CHANGES IN CAPITALIZATION, MERGER OR ASSET SALE

  	
  15

  
	
   

  	
   

  	
   

  
	
  18.

  	
  TIME OF
  GRANTING AWARDS

  	
  18

  
	
   

  	
   

  	
   

  
	
  19.

  	
  AMENDMENT AND
  TERMINATION OF THE PLAN

  	
  18

  
	
   

  	
   

  	
   

  
	
  20.

  	
  STOCKHOLDER
  APPROVAL

  	
  19

  
	
   

  	
   

  	
   

  
	
  21.

  	
  INABILITY TO
  OBTAIN AUTHORITY

  	
  20

  
	
   

  	
   

  	
   

  
	
  22.

  	
  RESERVATION OF
  SHARES

  	
  20

  
	
   

  	
   

  	
   

  
	
  23.

  	
  INVESTMENT
  INTENT

  	
  20

  
	
   

  	
   

  	
   

  
	
  24.

  	
  GOVERNING LAW

  	
  20

  

 

i

 

CONCEPTUS, INC.

 

TWELFTH AMENDED AND RESTATED 2001 EQUITY INCENTIVE
PLAN

 

1.             Purposes
of the Plan.  The purposes of the
Conceptus, Inc. Twelfth Amended and Restated 2001 Equity Incentive Plan
are to attract and retain the best available personnel for positions of
substantial responsibility, to provide additional incentive to Employees,
Directors and Consultants and to promote the success of the Company’s
business.  Options granted under the Plan
may be Incentive Stock Options or Non-Qualified Stock Options, as determined by
the Administrator at the time of grant. 
Other Awards may also be granted under the Plan.

 

2.             Definitions.  As used herein, the following definitions
shall apply:

 

(a)           “Acquisition”
means (i) any consolidation or merger of the Company with or into any
other corporation or other entity or person in which the stockholders of the
Company prior to such consolidation or merger own less than fifty percent (50%)
of the Company’s voting power immediately after such consolidation or merger,
excluding any consolidation or merger effected exclusively to change the
domicile of the Company; or (ii) a sale of all or substantially all of the
assets of the Company.

 

(b)           “Administrator”
means the Board or the Committee responsible for conducting the general administration
of the Plan, as applicable, in accordance with Section 4 hereof.

 

(c)           “Applicable Laws”
means the requirements relating to the administration of equity compensation
plans under U.S. state corporate laws, U.S. federal and state securities laws,
the Code, any stock exchange or quotation system on which the Common Stock is
listed or quoted and the applicable laws of any foreign country or jurisdiction
where Awards are granted under the Plan.

 

(d)           “Award” shall
mean an Option, a Restricted Stock award, a Stock Appreciation Right award, a
Performance Share award, a Dividend Equivalents award, a Stock Payment award, a
Stock Purchase Right or a Restricted Stock Unit award granted to an eligible
individual under the Plan.

 

(e)           “Award Agreement”
means any written agreement, contract, or other instrument or document
evidencing an Award.

 

(f)            “Board”
means the Board of Directors of the Company.

 

(g)           “Code” means
the Internal Revenue Code of 1986, as amended, or any successor statute or
statutes thereto.  Reference to any
particular Code section shall include any successor section.

 

(h)           “Committee”
means a committee appointed by the Board in accordance with Section 4
hereof.

 

1

 

(i)            “Common Stock”
means the Common Stock of the Company, par value $0.003 per share.

 

(j)            “Company”
means Conceptus, Inc., a Delaware corporation.

 

(k)           “Consultant”
means any consultant or adviser if: (i) the consultant or adviser renders
bona fide services to the Company or any Parent or Subsidiary of the Company; (ii) the
services rendered by the consultant or adviser are not in connection with the
offer or sale of securities in a capital-raising transaction and do not
directly or indirectly promote or maintain a market for the Company’s
securities; and (iii) the consultant or adviser is a natural person who
has contracted directly with the Company or any Parent or Subsidiary of the
Company to render such services.

 

(l)            “Director”
means a member of the Board.

 

(m)          “DRO” means a
domestic relations order as defined by the Code or Title I of the Employee
Retirement Income Security Act of 1974, as amended from time to time, or the rules thereunder.

 

(n)           “Employee”
means any person, including an Officer or Director, who is an employee (as
defined in accordance with Section 3401(c) of the Code) of the
Company or any Parent or Subsidiary of the Company.  A Service Provider shall not cease to be an
Employee in the case of (i) any leave of absence approved by the Company
or (ii) transfers between locations of the Company or between the Company,
its Parent, any Subsidiary, or any successor. 
For purposes of Incentive Stock Options, no such leave may exceed ninety
(90) days, unless reemployment upon expiration of such leave is guaranteed by
statute or contract.  Neither service as
a Director nor payment of a director’s fee by the Company shall be sufficient,
by itself, to constitute “employment” by the Company.

 

(o)           “Equity
Restructuring” shall mean a non-reciprocal transaction between the Company
and its stockholders, such as a stock dividend, stock split, spin-off, rights
offering or recapitalization through a large, nonrecurring cash dividend, that
affects shares of Common Stock (or other securities of the Company) or the
share price of Common Stock (or of other securities) and causes a change in the
per share value of the Common Stock underlying outstanding Awards.

 

(p)           “Exchange Act”
means the Securities Exchange Act of 1934, as amended, or any successor statute
or statutes thereto.  Reference to any
particular Exchange Act section shall include any successor section.

 

(q)           “Fair Market
Value” means, as of any date, the value of a share of Common Stock
determined as follows:

 

(i)            If the Common Stock
is listed on any established stock exchange or a national market system,
including, without limitation, the Nasdaq Global Select Market, the Nasdaq
Global Market or the Nasdaq Capital Market, its Fair Market Value shall be the
closing sales price for a share of such stock (or the closing bid, if no sales
were reported) as quoted on such exchange or system on the day of determination
(or the most recent day on which sales

 

2

 

were reported if
none were reported on such date), as reported in The Wall Street Journal or
such other source as the Administrator deems reliable;

 

(ii)           If the Common Stock
is regularly quoted by a recognized securities dealer but selling prices are
not reported, its Fair Market Value shall be the mean between the high bid and
low asked prices for a share of the Common Stock on the day of determination
(or the most recent day on which bid and asked prices were reported if none
were reported on such date); or

 

(iii)          In the absence of
an established market for the Common Stock, the Fair Market Value thereof shall
be determined in good faith by the Administrator.

 

(r)            “Full
Value Award” means any Award other than an Option or other Award for which
the Holder pays the intrinsic value (whether directly or by forgoing a right to
receive a payment from the Company).

 

(s)           “Holder”
means a person who has been granted or awarded an Award or who holds Shares
acquired pursuant to the exercise of an Award.

 

(t)            “Incentive Stock
Option” means an Option intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code and which is designated as
an Incentive Stock Option by the Administrator.

 

(u)           “Independent
Director” means a Director who is not an Employee of the Company.

 

(v)           “Independent
Director Equity Compensation Policy” shall have the meaning set forth in Section 12.

 

(w)          “Non-Qualified
Stock Option” means an Option (or portion thereof) that is not designated
as an Incentive Stock Option by the Administrator, or which is designated as an
Incentive Stock Option by the Administrator but fails to qualify as an
incentive stock option within the meaning of Section 422 of the Code.

 

(x)            “Officer”
means a person who is an officer of the Company within the meaning of Section 16
of the Exchange Act and the rules and regulations promulgated thereunder.

 

(y)           “Option”
means a stock option granted pursuant to the Plan.

 

(z)            “Option
Agreement” means a written agreement between the Company and a Holder
evidencing the terms and conditions of an individual Option grant.  The Option Agreement is subject to the terms
and conditions of the Plan.

 

(aa)         “Parent” means
any corporation, whether now or hereafter existing (other than the Company), in
an unbroken chain of corporations ending with the Company if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing

 

3

 

more than fifty
percent of the total combined voting power of all classes of stock in one of
the other corporations in such chain.

 

(bb)         “Performance Share”
means a right granted to a Holder pursuant to Section 16, to receive cash,
Stock, or other Awards, the payment of which is contingent upon achieving
certain performance goals established by the Committee.

 

(cc)         “Permitted
Transferee” shall mean, with respect to a Holder, any “family member” of
the Holder, as defined under the instructions to use of the Form S-8
Registration Statement under the Securities Act, after taking into account any
state, federal, local or foreign tax and securities laws applicable to
transferable Awards.

 

(dd)         “Plan” means
the Conceptus, Inc. Twelfth Amended and Restated 2001 Equity Incentive
Plan.

 

(ee)         “Restricted Stock”
means Shares (i) acquired pursuant to the exercise of an unvested Option
in accordance with Section 10(h) below or pursuant to a Stock
Purchase Right granted under Section 13 below or (ii) issued pursuant
to a Restricted Stock award under Section 13 below.

 

(ff)           “Restricted
Stock Unit” means a right to receive a specified number of shares of Common
Stock during specified time periods pursuant to Section 14.

 

(gg)         “Rule 16b-3”
means that certain Rule 16b-3 under the Exchange Act, as such Rule may
be amended from time to time.

 

(hh)         “Securities Act”
means the Securities Act of 1933, as amended, or any successor statute or
statutes thereto.  Reference to any
particular Securities Act section shall include any successor section.

 

(ii)           “Service
Provider” means an Employee, Director or Consultant.

 

(jj)           “Share”
means a share of Common Stock, as adjusted in accordance with Section 17
below.

 

(kk)         “Stock
Appreciation Right” or “SAR” means a right granted pursuant to Section 15
to receive a payment equal to the excess of the Fair Market Value of a
specified number of shares of Common Stock on the date the SAR is exercised
over the Fair Market Value on the date the SAR was granted as set forth in the
applicable Award Agreement.

 

(ll)           “Stock Payment”
means (a) a payment in the form of Shares, or (b) an option or other
right to purchase Shares, as part of any bonus, deferred compensation or other
arrangement, made in lieu of all or any portion of the compensation, granted
pursuant to Section 16.

 

(mm)       “Stock Purchase
Right” means a right to purchase Common Stock pursuant to Section 13
below.

 

4

 

(nn)         “Subsidiary”
means any corporation, whether now or hereafter existing (other than the
Company), in an unbroken chain of corporations beginning with the Company if
each of the corporations other than the last corporation in the unbroken chain
owns stock possessing more than fifty percent of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

 

3.             Stock Subject to the Plan.  Subject to the provisions of Section 17
of the Plan, the shares of stock subject to Awards shall be Common Stock,
initially shares of the Company’s Common Stock, par value $0.003 per
share.  Subject to the provisions of Section 17
of the Plan, the maximum aggregate number of Shares which may be issued or
transferred pursuant to Awards under the Plan is 5,500,000 Shares.  Shares issued pursuant to an Award may be
authorized but unissued, or reacquired Common Stock.  To the extent that an Award terminates,
expires, or lapses for any reason, any Shares subject to the Award shall again
be available for the grant of an Award pursuant to the Plan.  If Shares of Restricted Stock are repurchased
by the Company at their original purchase price, if any, such Shares shall
become available for future grant under the Plan.  Notwithstanding the provisions of this Section 3,
no Shares may again be optioned, granted or awarded if such action would cause
an Incentive Stock Option to fail to qualify as an Incentive Stock Option under
Section 422 of the Code, and the following Shares shall not be added back
to the shares authorized for grant under this Section 3:  (i) Shares tendered by the Holder or
withheld by the Company in payment of the exercise price of an Option, (ii) Shares
tendered by the Holder or withheld by the Company to satisfy any tax
withholding obligation with respect to an Award, and (iii) Shares that
were subject to a stock-settled Stock Appreciation Right and were not issued
upon the net settlement or net exercise of such Stock Appreciation Right. 
Notwithstanding anything herein to the contrary, no more than fifty
percent (50%) of the Shares available for issuance hereunder immediately
following the stockholder meeting held on June 4, 2008 may be issued in
the form of Full Value Awards following such date.

 

4.             Administration of the Plan.

 

(a)           Administrator.  Either the Board or a Committee of the Board
delegated administrative authority hereunder shall administer the Plan and, in
the case of a Committee, the Committee shall consist solely of two or more
Independent Directors each of whom is both an “outside director,” within the
meaning of Section 162(m) of the Code, and a “non-employee director”
within the meaning of Rule 16b-3. 
Within the scope of such authority, the Board or the Committee may (i) delegate
to a committee of one or more members of the Board who are not Independent
Directors the authority to grant awards under the Plan to eligible persons who
are either (1) not then “covered employees,” within the meaning of Section 162(m) of
the Code and are not expected to be “covered employees” at the time of
recognition of income resulting from such award or (2) not persons with
respect to whom the Company wishes to comply with Section 162(m) of
the Code and/or (ii) delegate to a committee of one or more members of the
Board who are not “non-employee directors,” within the meaning of Rule 16b-3,
the authority to grant awards under the Plan to eligible persons who are not
then subject to Section 16 of the Exchange Act.  The Board may abolish the Committee at any
time and revest in the Board the administration of the Plan.  Appointment of Committee members shall be
effective upon acceptance of appointment. Committee members may resign at any
time by delivering written notice to the Board. 
Vacancies in the Committee may be filled only by the Board.

 

5

 

(b)           Powers of the
Administrator.  Subject to the
provisions of the Plan and the specific duties delegated by the Board to such
Committee, and subject to the approval of any relevant authorities, the
Administrator shall have the authority in its sole discretion:

 

(i)            to determine the
Fair Market Value;

 

(ii)           to select the
Service Providers to whom Awards may from time to time be granted hereunder;

 

(iii)          to determine the
number of Shares to be covered by each such Award granted hereunder;

 

(iv)          to approve forms of
agreement for use under the Plan;

 

(v)           subject to Section 18
of the Plan, to determine the terms and conditions of any Award granted
hereunder (such terms and conditions include, but are not limited to, the
exercise price, the time or times when Awards may vest or be exercised (which
may be based on performance criteria), any vesting acceleration or waiver of
forfeiture restrictions, and any restriction or limitation regarding any Award
or the Common Stock relating thereto, based in each case on such factors as the
Administrator, in its sole discretion, shall determine);

 

(vi)          to determine whether
to offer to buyout a previously granted Option as provided in subsection 10(i) and
to determine the terms and conditions of such offer and buyout (including
whether payment is to be made in cash or Shares);

 

(vii)         to prescribe, amend
and rescind rules and regulations relating to the Plan, including rules and
regulations relating to sub-plans established for the purpose of qualifying for
preferred tax treatment under foreign tax laws;

 

(viii)        to allow Holders to
satisfy withholding tax obligations by electing to have the Company withhold
from the Shares to be issued pursuant to an Award that number of Shares having
a Fair Market Value equal to the minimum amount required to be withheld based
on the statutory withholding rates for federal and state tax purposes that
apply to supplemental taxable income. 
The Fair Market Value of the Shares to be withheld shall be determined
on the date that the amount of tax to be withheld is to be determined.  All elections by Holders to have Shares
withheld for this purpose shall be made in such form and under such conditions
as the Administrator may deem necessary or advisable;

 

(ix)           subject to Section 18,
to amend the Plan or any Award granted under the Plan as provided in Section 21;
and

 

(x)            to construe and
interpret the terms of the Plan and Awards granted pursuant to the Plan and to
exercise such powers and perform such acts as the Administrator deems necessary
or desirable to promote the best interests of the Company which are not in
conflict with the provisions of the Plan.

 

6

 

(c)           Effect of Administrator’s
Decision.  All decisions,
determinations and interpretations of the Administrator shall be final and
binding on all Holders.

 

5.             Eligibility.  Awards other than Incentive Stock Options may
be granted to Service Providers. 
Incentive Stock Options may be granted only to Employees.  If otherwise eligible, a Service Provider who
has been granted an Award may be granted additional Awards.  Each Independent Director shall be eligible
to be granted Awards pursuant to the Independent Director Equity Compensation
Policy described in Section 12.

 

6.             Limitations.

 

(a)           Each Option shall be
designated by the Administrator in the Option Agreement as either an Incentive
Stock Option or a Non-Qualified Stock Option. 
However, notwithstanding such designations, to the extent that the
aggregate Fair Market Value of Shares subject to a Holder’s Incentive Stock
Options and other incentive stock options granted by the Company, any Parent or
Subsidiary, which become exercisable for the first time during any calendar year
(under all plans of the Company or any Parent or Subsidiary) exceeds $100,000,
such excess Options or other options shall be treated as Non-Qualified Stock
Options.

 

For purposes of this Section 6(a),
Incentive Stock Options shall be taken into account in the order in which they
were granted, and the Fair Market Value of the Shares shall be determined as of
the time of grant.

 

(b)           Neither the Plan nor
any Award shall confer upon a Holder any right with respect to continuing the
Holder’s employment or consulting relationship with the Company, nor shall they
interfere in any way with the Holder’s right or the Company’s right to
terminate such employment or consulting relationship at any time, with or
without cause.

 

(c)           The maximum number
of shares of Common Stock with respect to one or more Awards that may be
granted to any one Service Provider during a calendar year shall be
800,000.  Notwithstanding the foregoing,
the maximum number of shares of Common Stock with respect to one or more Full
Value Awards that may be granted to any one Service Provider during a calendar
year shall be 300,000.  The limitations
in this Section 6(c) shall be adjusted proportionately in connection
with any change in the Company’s capitalization as described in Section 17.  For purposes of this Section 6(c), if an
Option is canceled in the same calendar year it was granted (other than in
connection with a transaction described in Section 17), the canceled
Option will be counted against the limit set forth in this Section 6(c).  For this purpose, if the exercise price of an
Option is reduced, the transaction shall be treated as a cancellation of the
Option and the grant of a new Option.

 

7.             Term
of Plan.  The Plan became effective
upon its initial adoption by the Board on March 21, 2001 and shall
continue in effect until it is terminated under Section 21 of the
Plan.  No Awards may be issued under the
Plan after March 21, 2011, the tenth (10th) anniversary of the date upon
which the Plan was initially adopted by the Board.

 

8.             Term
of Awards.  The term of each Award
shall be stated in the Award Agreement; provided, however,
that the term shall be no more than ten (10) years from the date of grant
thereof.  In the case of an Incentive
Stock Option granted to a Holder who, at the time

 

7

 

the Option is granted, owns (or is treated as owning
under Code Section 424) stock representing more than ten percent (10%) of
the voting power of all classes of stock of the Company or any Parent or Subsidiary,
the term of the Option shall be five (5) years from the date of grant or
such shorter term as may be provided in the Option Agreement.

 

9.             Option Exercise
Price and Consideration.

 

(a)           The per share exercise price for the
Shares to be issued upon exercise of an Option shall be such price as is
determined by the Administrator, but shall be subject to the following:

 

(i)            In the case of an
Incentive Stock Option

 

(A)          granted to an
Employee who, at the time of grant of such Option, owns (or is treated as
owning under Code Section 424) stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent
or Subsidiary, the per Share exercise price shall be no less than one hundred
ten percent (110%) of the Fair Market Value per Share on the date of grant.

 

(B)           granted to any other
Employee, the per Share exercise price shall be no less than one hundred
percent (100%) of the Fair Market Value per Share on the date of grant.

 

(ii)           In
the case of a Non-Qualified Stock Option, the per Share exercise price shall be
no less than one hundred percent (100%) of the Fair Market Value per Share on
the date of grant.

 

(b)           The consideration to
be paid for the Shares to be issued upon exercise of an Option, including the
method of payment, shall be determined by the Administrator.  Such consideration may consist of (1) cash,
(2) check, (3) with the consent of the Administrator, other Shares
which (x) in the case of Shares acquired from the Company, have been owned
by the Holder for more than six (6) months on the date of surrender, and (y) have
a Fair Market Value on the date of surrender equal to the aggregate exercise
price of the Shares as to which such Option shall be exercised, (4) with
the consent of the Administrator, surrendered Shares then issuable upon
exercise of the Option having a Fair Market Value on the date of exercise equal
to the aggregate exercise price of the Option or exercised portion thereof, (5) property
of any kind which constitutes good and valuable consideration (6) with the
consent of the Administrator, delivery of a notice that the Holder has placed a
market sell order with a broker with respect to Shares then issuable upon
exercise of the Options and that the broker has been directed to pay a sufficient
portion of the net proceeds of the sale to the Company in satisfaction of the
Option exercise price, provided, that
payment of such proceeds is then made to the Company upon settlement of such
sale, or (7) with the consent of the Administrator, any combination of the
foregoing methods of payment.

 

8

 

10.           Exercise of Option; Vesting;
Fractional Exercises.  Options
granted hereunder shall be vested and exercisable according to the terms hereof
at such times and under such conditions as determined by the Administrator and
set forth in the Option Agreement.  An
Option may not be exercised for a fraction of a Share.

 

(a)           All
Options shall be subject to such additional terms and conditions as determined
by the Administrator and shall be evidenced by a written Option Agreement.  In the event that the exercise price of an
Option is intended to be below the Fair Market Value per Share on the date of
grant, such Option Agreement may also include limitations regarding the
exercise of such Option and may provide that such exercise is subject to
certain terms and restrictions, including but not limited to, an election, by
specified date, of the Holder, regarding such Option, to the extent such terms and restrictions are required so as not
cause the Option or the shares of Common Stock issuable pursuant to the
exercise of such Option to be includable in the gross income of the Holder
under Section 409A of the Code prior to such times or occurrence of such
events, as permitted by the Code and the regulations and other guidance
thereunder (including, without limitation, Section 409A of the Code, and
the regulations and other guidance issued by the Secretary of the Treasury
thereunder).

 

(b)           Deliveries upon
Exercise.  All or a portion of an
exercisable Option shall be deemed exercised upon delivery of all of the
following to the Secretary of the Company or his or her office:

 

(i)            A written or
electronic notice complying with the applicable rules established by the
Administrator stating that the Option, or a portion thereof, is exercised.  The notice shall be signed by the Holder or
other person then entitled to exercise the Option or such portion of the
Option;

 

(ii)           Such
representations and documents as the Administrator, in its sole discretion,
deems necessary or advisable to effect compliance with Applicable Laws.  The Administrator may, in its sole
discretion, also take whatever additional actions it deems appropriate to
effect such compliance, including, without limitation, placing legends on share
certificates and issuing stop transfer notices to agents and registrars;

 

(iii)          Upon the exercise
of all or a portion of an unvested Option pursuant to Section 10(h), a
Restricted Stock purchase agreement in a form determined by the Administrator
and signed by the Holder or other person then entitled to exercise the Option
or such portion of the Option; and

 

(iv)          In the event that
the Option shall be exercised pursuant to Section 10(f) by any person
or persons other than the Holder, appropriate proof of the right of such person
or persons to exercise the Option.

 

(c)           Conditions to
Delivery of Share Certificates.  The
Company shall not be required to issue or deliver any certificate or
certificates for Shares purchased upon the exercise of any Option or portion
thereof prior to fulfillment of all of the following conditions:

 

(i)            The admission of
such Shares to listing on all stock exchanges on which such class of stock is
then listed;

 

9

 

(ii)           The completion of
any registration or other qualification of such Shares under any state or
federal law, or under the rulings or regulations of the Securities and Exchange
Commission or any other governmental regulatory body which the Administrator
shall, in its sole discretion, deem necessary or advisable;

 

(iii)          The obtaining of
any approval or other clearance from any state or federal governmental agency
which the Administrator shall, in its sole discretion, determine to be
necessary or advisable;

 

(iv)          The lapse of such
reasonable period of time following the exercise of the Option as the
Administrator may establish from time to time for reasons of administrative
convenience; and

 

(v)           The receipt by the
Company of full payment for such Shares, including payment of any applicable
withholding tax, which in the sole discretion of the Administrator may be in
the form of consideration used by the Holder to pay for such Shares under Section 9(b).

 

(d)           Termination of
Relationship as a Service Provider. 
If a Holder ceases to be a Service Provider other than by reason of the
Holder’s disability or death, such Holder may exercise his or her Option within
such period of time as is specified in the Option Agreement to the extent that
the Option is vested on the date of termination.  In the absence of a specified time in the
Option Agreement, the Option shall remain exercisable for three (3) months
following the Holder’s termination.  If,
on the date of termination, the Holder is not vested as to his or her entire
Option, the Shares covered by the unvested portion of the Option immediately
cease to be issuable under the Option and shall again become available for
issuance under the Plan.  If, after
termination, the Holder does not exercise his or her Option within the time
period specified herein, the Option shall terminate, and the Shares covered by
such Option shall again become available for issuance under the Plan.

 

(e)           Disability of
Holder.  If a Holder ceases to be a
Service Provider as a result of the Holder’s disability, the Holder may
exercise his or her Option within such period of time as is specified in the
Option Agreement to the extent the Option is vested on the date of
termination.  In the absence of a
specified time in the Option Agreement, the Option shall remain exercisable for
twelve (12) months following the Holder’s termination.  If such disability is not a “disability” as
such term is defined in Section 22(e)(3) of the Code, in the case of
an Incentive Stock Option such Incentive Stock Option shall automatically cease
to be treated as an Incentive Stock Option and shall be treated for tax
purposes as a Non-Qualified Stock Option from and after the day which is three (3) months
and one (1) day following such termination.  If, on the date of termination, the Holder is
not vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall immediately cease to be issuable under the Option
and shall again become available for issuance under the Plan.  If, after termination, the Holder does not
exercise his or her Option within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall again become available
for issuance under the Plan.

 

(f)            Death of Holder.  If a Holder dies while a Service Provider,
the Option may be exercised within such period of time as is specified in the
Option Agreement, by the

 

10

 

Holder’s estate or
by a person who acquires the right to exercise the Option by bequest or
inheritance, but only to the extent that the Option is vested on the date of
death.  In the absence of a specified
time in the Option Agreement, the Option shall remain exercisable for twelve
(12) months following the Holder’s termination. 
If, at the time of death, the Holder is not vested as to his or her
entire Option, the Shares covered by the unvested portion of the Option shall
immediately cease to be issuable under the Option and shall again become
available for issuance under the Plan. 
The Option may be exercised by the executor or administrator of the
Holder’s estate or, if none, by the person(s) entitled to exercise the
Option under the Holder’s will or the laws of descent or distribution.  If the Option is not so exercised within the
time specified herein, the Option shall terminate, and the Shares covered by
such Option shall again become available for issuance under the Plan.

 

(g)           Regulatory
Extension.  A Holder’s Option
Agreement may provide that if the exercise of the Option following the
termination of the Holder’s status as a Service Provider (other than upon the
Holder’s death or Disability) would be prohibited at any time solely because
the issuance of shares would violate the registration requirements under the
Securities Act, then the Option shall terminate on the earlier of (i) the
expiration of the term of the Option set forth in Section 8 or (ii) the
expiration of a period of three (3) months after the termination of the
Holder’s status as a Service Provider during which the exercise of the Option
would not be in violation of such registration requirements.

 

(h)           Early
Exercisability.  The Administrator
may provide in the terms of a Holder’s Option Agreement that the Holder may, at
any time before the Holder’s status as a Service Provider terminates, exercise
the Option in whole or in part prior to the full vesting of the Option; provided, however, that Shares acquired upon exercise of an
Option which has not fully vested may be subject to any forfeiture, transfer or
other restrictions as the Administrator may determine in its sole discretion.

 

(i)            Buyout
Provisions.  Absent the approval of
the stockholders of the Company, the Administrator shall not offer to buyout
for a payment in cash or Shares, an Option previously granted.

 

11.   Transferability
of Awards.

 

(a)           Except as otherwise
provided in Section 11(b):

 

(i)            No
Award under the Plan may be sold, pledged, assigned or transferred in any
manner other than by will or the laws of descent and distribution or, subject
to the consent of the Administrator, pursuant to a DRO, unless and until such
Award has been exercised, or the shares underlying such Award have been issued,
and all restrictions applicable to such shares have lapsed;

 

(ii)           No
Award or interest or right therein shall be liable for the debts, contracts or
engagements of the Holder or his successors in interest or shall be subject to
disposition by transfer, alienation, anticipation, pledge, hypothecation,
encumbrance, assignment or any other means whether such disposition be
voluntary or involuntary or by operation of law by judgment, levy, attachment,
garnishment or any other legal or equitable proceedings

 

11

 

(including bankruptcy), and any attempted disposition thereof shall be
null and void and of no effect, except to the extent that such disposition is
permitted by the preceding sentence; and

 

(iii)          During
the lifetime of the Holder, only the Holder may exercise an Award (or any
portion thereof) granted to him under the Plan, unless it has been disposed of
pursuant to a DRO; after the death of the Holder, any exercisable portion of an
Award may, prior to the time when such portion becomes unexercisable under the
Plan or the applicable Award Agreement, be exercised by his personal
representative or by any person empowered to do so under the deceased Holder’s
will or under the then applicable laws of descent and distribution.

 

(b)           Notwithstanding Section 11(a),
the Administrator, in its sole discretion, may determine to permit a Holder to
transfer an Award other than an Incentive Stock Option to any one or more
Permitted Transferees, subject to the following terms and conditions:  (i) an Award transferred to a Permitted
Transferee shall not be assignable or transferable by the Permitted Transferee
other than by will or the laws of descent and distribution; (ii) an Award
transferred to a Permitted Transferee shall continue to be subject to all the
terms and conditions of the Award as applicable to the original Holder (other
than the ability to further transfer the Award); and (iii) the Holder and
the Permitted Transferee shall execute any and all documents requested by the
Administrator, including, without limitation documents to (A) confirm the
status of the transferee as a Permitted Transferee, (B) satisfy any
requirements for an exemption for the transfer under applicable federal, state
and foreign securities laws and (C) evidence the transfer.

 

12.           Grants of Awards to Independent
Directors.  Notwithstanding anything
herein to the contrary, the grant of any Award to an Independent Director shall
be made by the Board pursuant to a written policy or program which may be
recommended by a Committee of the Board and approved by the Board (the “Independent
Director Equity Compensation Policy”) in its discretion.  The Independent Director Equity Compensation
Policy shall set forth the type of Award(s) to be granted to Independent
Directors, the number of Shares to be subject to Independent Director Awards,
the conditions on which such Awards shall be granted, become exercisable and/or
payable and expire, and such other terms and conditions as may be set forth in
the Independent Director Equity Compensation Policy and determined by the Board
in its discretion.

 

13.           Restricted
Stock; Stock Purchase Rights.

 

(a)           Restricted Stock;
Rights to Purchase.  Restricted Stock
and/or Stock Purchase Rights may be issued either alone, in addition to, or in
tandem with Options granted under the Plan and/or cash awards made outside of
the Plan.  After the Administrator
determines that it will offer Restricted Stock or Stock Purchase Rights under
the Plan, it shall advise the offeree in writing of the terms, conditions and
restrictions related to the offer, including the number of Shares that such
person shall be entitled to purchase, the price to be paid, if any, and the
time within which such person must accept such offer.  The offer shall be
accepted by execution of a Restricted Stock purchase agreement in the form
determined by the Administrator.

 

(b)           Repurchase Right;
Forfeiture.  Unless the Administrator
determines otherwise, the Restricted Stock purchase agreement shall grant the
Company the right to

 

12

 

repurchase Shares
acquired upon exercise of a Stock Purchase Right or provide for the forfeiture
of Shares acquired pursuant to a Restricted Stock award upon the termination of
the purchaser’s status as a Service Provider for any reason.  The purchase price for Shares repurchased by
the Company pursuant to such repurchase right, if any, and, subject to Section 18,
the rate at which such repurchase right or any forfeiture provision shall lapse
shall be determined by the Administrator in its sole discretion, and shall be
set forth in the Restricted Stock purchase agreement.

 

(c)           Other Provisions.  The Restricted Stock purchase agreement shall
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.

 

(d)           Rights as a
Shareholder.  Once the Stock Purchase
Right is exercised or the Restricted Stock is issued, the purchaser shall have
rights equivalent to those of a shareholder and shall be a shareholder when his
or her purchase or award is entered upon the records of the duly authorized
transfer agent of the Company.  No
adjustment shall be made for a dividend or other right for which the record
date is prior to the date the Stock Purchase Right is exercised or Restricted
Stock is awarded, except as provided in Section 17 of the Plan.

 

14.           Restricted
Stock Units.

 

Any
Service Provider selected by the Administrator may be granted an award of
Restricted Stock Units in the manner determined from time to time by the
Administrator.

 

(a)           Subject to Section 18,
the vesting of Restricted Stock Units shall be determined by the Administrator
and may be linked to specific performance criteria determined to be appropriate
by the Administrator, in each case on a specified date or dates or over any
period or periods determined by the Administrator.  Common Stock underlying a Restricted Stock
Unit award will not be issued until the Restricted Stock Unit award has vested,
pursuant to a vesting schedule or performance criteria set by the
Administrator.

 

(b)           Unless otherwise provided by the Administrator, a
Holder awarded Restricted Stock Units shall have no rights as a Company
stockholder with respect to such Restricted Stock Units until such time as the
Restricted Stock Units have vested and the Common Stock underlying the
Restricted Stock Units has been issued.

 

(c)           All Restricted Stock Units shall be
subject to such additional terms and conditions as determined by the
Administrator and shall be evidenced by a written Award Agreement.  Such Award Agreement may also include
limitations regarding the distribution of payments due pursuant to such
Restricted Stock Units and may provide that such payments are subject to an election,
by a certain date, of the Holder to whom such payment is to be awarded, to the
extent such limitations and elections are required so as not cause any
Restricted Stock Unit Award or the shares of Common Stock or cash issuable
pursuant to any Restricted Stock Unit Award (or other amounts issuable or
distributable) to be includable in the gross income of the Holder under Section 409A
of the Code prior to such times or occurrence of such events, as permitted by
the Code and the regulations and other guidance thereunder (including, without

 

13

 

limitation, Section 409A of the Code, and
the regulations and other guidance issued by the Secretary of the Treasury
thereunder).

 

15.           Stock Appreciation Rights.

 

A
Stock Appreciation Right may be granted to any Service Provider selected by the
Administrator.  A Stock Appreciation
Right may be granted (a) in connection and simultaneously with the grant
of an Option, (b) with respect to a previously granted Option, or (c) independent
of an Option.  The exercise price per
share of Common Stock subject to each Stock Appreciation Right shall be set by
the Administrator, but shall not be less than 100% of the per Share Fair Market
Value on the date the Stock Appreciation Right is granted.  The term of each Stock Appreciation Right
shall be no more than ten (10) years from the date of grant thereof.  A Stock Appreciation Right otherwise shall be
subject to such terms and conditions not inconsistent with the Plan as the
Administrator shall impose and shall be evidenced by an Award Agreement.

 

(a)           Coupled Stock Appreciation Rights. 
A Coupled Stock Appreciation Right (“CSAR”) shall be related to a
particular Option and shall be exercisable only when and to the extent the
related Option is exercisable.

 

(i)            A CSAR may be granted to a Holder for no
more than the number of shares subject to the simultaneously or previously
granted Option to which it is coupled.

 

(ii)           A CSAR shall
entitle the Holder (or other person entitled to exercise the Option pursuant to
the Plan) to surrender to the Company unexercised a portion of the Option to
which the CSAR relates (to the extent then exercisable pursuant to its terms)
and to receive from the Company in exchange therefor an amount determined by
multiplying the difference obtained by subtracting the Option exercise price
from the Fair Market Value of a share of Common Stock on the date of exercise
of the CSAR by the number of shares of Common Stock with respect to which the
CSAR shall have been exercised, subject to any limitations the Administrator
may impose.

 

(b)           Independent Stock
Appreciation Rights.  An Independent
Stock Appreciation Right (“ISAR”) shall be unrelated to any Option and
shall have a term set by the Administrator. 
An ISAR shall be exercisable in such installments as the Administrator
may determine.  An ISAR shall cover such
number of shares of Common Stock as the Administrator may determine.  The exercise price per share of Common Stock
subject to each ISAR shall be set by the Administrator; provided, however, that, the Administrator in its sole and absolute discretion may
provide that the ISAR may be exercised subsequent to a termination of
employment or service, as applicable, or following an Acquisition of the
Company, or because of the Holder’s retirement, death or disability, or
otherwise.  An ISAR shall entitle
the Holder (or other person entitled to exercise the ISAR pursuant to the Plan)
to exercise all or a specified portion of the ISAR (to the extent then
exercisable pursuant to its terms) and to receive from the Company an amount
determined by multiplying the difference obtained by subtracting the exercise
price per share of the ISAR from the Fair Market Value of a share of Common
Stock on the date of exercise of the ISAR by the number of shares of Common Stock
with respect to

 

14

 

which the ISAR
shall have been exercised, subject to any limitations the Administrator may
impose.

 

(c)           Payment and
Limitations on Exercise.

 

(i)            Subject
to Section 15(c)(ii), payment of the amounts determined under Sections 15(a) and
15(b) above shall be in cash, in Common Stock (based on its Fair Market
Value as of the date the Stock Appreciation Right is exercised) or a
combination of both, as determined by the Administrator.

 

(ii)           To
the extent any payment under this Section 15 is effected in Common Stock,
it shall be made subject to satisfaction of all provisions of Sections 9 and 10
above pertaining to Options.

 

16.           Other
Awards.

 

(a)           Performance Share
Awards.  Any Service Provider
selected by the Committee may be granted one or more Performance Share awards
which may be denominated in a number of Shares or in a dollar value of Shares
and which may be linked to any one or more specific performance criteria
determined appropriate by the Committee, in each case on a specified date or
dates or over any period or periods determined by the Committee.  In making such determinations, the Committee
shall consider (among such other factors as it deems relevant in light of the
specific type of award) the contributions, responsibilities and other
compensation of the particular Holder.

 

(b)           Dividend
Equivalents.  Any Service Provider
selected by the Committee may be granted Dividend Equivalents based on the
dividends declared on the Shares that are subject to any Award other than an
Option or Stock Appreciation Right, to be credited as of dividend payment
dates, during the period between the date the Award is granted and the date the
Award is exercised, vests or expires, as determined by the Committee.  Such Dividend Equivalents shall be converted
to cash or additional Shares by such formula and at such time and subject to
such limitations as may be determined by the Committee.  For the avoidance of doubt, Dividend
Equivalents shall not be granted with respect to Options or Stock Appreciation
Rights.

 

(c)           Stock Payments.  Any Service Provider selected by the
Committee may receive Stock Payments in the manner determined from time to time
by the Committee.  The number of shares
shall be determined by the Committee and may be based upon specific performance
criteria determined appropriate by the Committee, determined on the date such
Stock Payment is made or on any date thereafter.

 

17.           Adjustments upon Changes in
Capitalization, Merger or Asset Sale.

 

(a)           In the event that the Administrator
determines that other than an Equity Restructuring any dividend or other
distribution (whether in the form of cash, Common Stock, other securities, or
other property), reclassification, reorganization, merger, consolidation,
spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer,
exchange or other disposition of all or substantially all of the assets of the
Company, or exchange of Common Stock or other securities of the Company,
issuance of warrants or other rights to purchase

 

15

 

Common Stock or other securities of the Company, or
other similar corporate transaction or event, in the Administrator’s sole
discretion, affects the Common Stock such that an adjustment is determined by
the Administrator to be appropriate in order to prevent dilution or enlargement
of the benefits or potential benefits intended by the Company to be made
available under the Plan or with respect to any Award, then the Administrator
shall, in such manner as it may deem equitable, adjust any or all of:

 

(i)            the number and kind
of shares of Common Stock (or other securities or property) with respect to
which Awards may be granted or awarded (including, but not limited to, adjustments
of the limitations in Section 3 on the maximum number and kind of shares
which may be issued and adjustments of the maximum number of Shares that may be
purchased by any Holder in any calendar year pursuant to Section 6(c));

 

(ii)           the number and kind
of shares of Common Stock (or other securities or property) subject to
outstanding Awards; and

 

(iii)          the grant or
exercise price with respect to any Award.

 

(b)           In the event of any
transaction or event described in Section 17(a), the Administrator, in its
sole discretion, and on such terms and conditions as it deems appropriate, and
to the extent allowed by Section 409A of the Code and any applicable
regulations thereunder, to the extent applicable, either by the terms of the
Award or by action taken prior to the occurrence of such transaction or event
and either automatically or upon the Holder’s request, is hereby authorized to
take any one or more of the following actions whenever the Administrator
determines that such action is appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended by the Company to be
made available under the Plan or with respect to any Award granted or issued
under the Plan or to facilitate such transaction or event:

 

(i)            To provide for
either the purchase of any such Award for an amount of cash equal to the amount
that could have been obtained upon the exercise of such Award or realization of
the Holder’s rights had such Award been currently exercisable or payable or
fully vested or the replacement of such Award with other rights or property
selected by the Administrator in its sole discretion;

 

(ii)           To provide that
such Award shall be exercisable as to all shares covered thereby,
notwithstanding anything to the contrary in the Plan or the provisions of such
Award;

 

(iii)          To provide that
such Award be assumed by the successor or survivor corporation, or a parent or
subsidiary thereof, or shall be substituted for by similar options, rights or
awards covering the stock of the successor or survivor corporation, or a parent
or subsidiary thereof, with appropriate adjustments as to the number and kind
of shares and prices;

 

(iv)          To make adjustments
in the number and type of shares of Common Stock (or other securities or
property) subject to outstanding Awards, and/or in the terms and

 

16

 

conditions of
(including the grant or exercise price), and the criteria included in,
outstanding Awards or Awards which may be granted in the future; and

 

(v)           To provide that
immediately upon the consummation of such event, such Award shall not be
exercisable and shall terminate; provided, that
for a specified period of time prior to such event, such Award shall be
exercisable as to all Shares covered thereby, and the restrictions imposed
under an Award Agreement upon some or all Shares may be terminated and, in the
case of Restricted Stock, some or all shares of such Restricted Stock may cease
to be subject to repurchase, notwithstanding anything to the contrary in the
Plan or the provisions of such Award Agreement.

 

(c)           In
connection with the occurrence of any Equity Restructuring, and notwithstanding
anything to the contrary in Sections 17(a) and 17(b):

 

(i)            The
number and type of securities subject to each outstanding Award and the
exercise price or grant price thereof, if applicable, will be proportionately
adjusted.  The adjustments provided under
this Section 17(c)(i) shall be nondiscretionary and shall be final
and binding on the affected Holder and the Company.

 

(ii)           The
Administrator shall make such proportionate adjustments, if any, as the
Administrator in its discretion may deem appropriate to reflect such Equity
Restructuring with respect to the aggregate number and kind of Shares that may
be issued under the Plan (including, but not limited to, adjustments of the
limitations in Section 3 and Section 6(c)).

 

(iii)          Notwithstanding
anything in this Section 17 to the contrary, this Section 17(c) shall
not apply to, and instead Section 17(a) of the Plan shall apply to,
any Award to which the application of this Section 17(c) would (A) result
in a penalty tax under Section 409A of the Code and the proposed and final
regulations and guidance issued by the Secretary of the Treasury thereunder or (B) cause
any Incentive Stock Option to fail to qualify as an “incentive stock option”
under Section 422 of the Code.

 

(d)           Subject to Section 3,
the Administrator may, in its sole discretion, include such further provisions
and limitations in any Award Agreement or Common Stock certificate, as it may
deem equitable and in the best interests of the Company.

 

(e)           If the Company
undergoes an Acquisition, then any surviving corporation or entity or acquiring
corporation or entity, or affiliate of such corporation or entity, may assume
any Awards outstanding under the Plan or may substitute similar stock awards
(including an award to acquire the same consideration paid to the stockholders
in the transaction described in this subsection 17(e)) for those outstanding
under the Plan.  In the event any
surviving corporation or entity or acquiring corporation or entity in an
Acquisition, or affiliate of such corporation or entity, does not assume such
Awards or does not substitute similar stock awards for those outstanding under
the Plan, then with respect to (i) Awards held by Holders in the Plan
whose status as a Service Provider has not terminated prior to such event, the
vesting of such Awards (and, if applicable, the time during which such awards
may be exercised) shall be accelerated and made fully exercisable and all
restrictions thereon shall lapse at least ten (10)

 

17

 

days prior to the
closing of the Acquisition (and the Awards terminated if not exercised prior to
the closing of such Acquisition), and (ii) any other Awards outstanding
under the Plan, such rights shall be terminated if not exercised prior to the
closing of the Acquisition. 
Notwithstanding the assumption or substitution of Options granted to
Service Providers other than Independent Directors pursuant to the foregoing
provisions, any Award granted to Independent Directors pursuant to the
Independent Director Equity Compensation Policy which is outstanding
immediately prior to the closing of the Acquisition shall not be assumed or
substituted for, shall be accelerated and made fully vested and/or exercisable,
as applicable, at least ten (10) days prior to the closing of the
Acquisition and shall terminate if not exercised prior to the closing of such
Acquisition.

 

(f)            The existence of
the Plan or any Award Agreement and the Awards granted hereunder shall not
affect or restrict in any way the right or power of the Company or the
stockholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change in the Company’s capital
structure or its business, any merger or consolidation of the Company, any
issue of stock or of options, warrants or rights to purchase stock or of bonds,
debentures, preferred or prior preference stocks whose rights are superior to
or affect the Common Stock or the rights thereof or which are convertible into
or exchangeable for Common Stock, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business, or
any other corporate act or proceeding, whether of a similar character or
otherwise.

 

18.           Full Value Award Vesting
Limitations.  Notwithstanding any
other provision of this Plan to the contrary, Full Value Awards made to
Employees or Consultants shall become vested over a period of not less than
three years (or, in the case of vesting based upon the attainment of
performance-based objectives, over a period of not less than one year)
following the date the Award is made, and the vesting schedule for Full Value
Awards may only be amended in the event of a Change in Control or an Employee
or Consultant’s death, Disability or retirement; provided, however, that, notwithstanding the foregoing, Full
Value Awards that result in the issuance of an aggregate of up to 5% of the
Shares available pursuant to Section 3 may be granted to, or amended with
respect to, any one or more Holders without regard to such minimum vesting or
amendment provisions.

 

19.           Time
of Granting Awards.  The date of
grant of an Award shall, for all purposes, be the date on which the
Administrator makes the determination granting such Award, or such other date
as is determined by the Administrator. 
Notice of the determination shall be given to each Service Provider to
whom an Award is so granted within a reasonable time after the date of such
grant.

 

20.           Amendment
and Termination of the Plan.

 

(a)           Amendment and
Termination.  The Board may at any
time wholly or partially amend, alter, suspend or terminate the Plan.  However, without approval of the Company’s
stockholders given within twelve (12) months before or after the action by the
Board, no action of the Board may, except as provided in Section 17,
increase the limits imposed in Section 3 on the maximum number of Shares
which may be issued under the Plan or extend the term of the Plan under Section 7.

 

18

 

(b)           Savings Clause.  Notwithstanding
anything to the contrary in the Plan or any Award Agreement relating to an
outstanding Award, if and to the extent the Administrator shall determine that
the terms of any Award may result in the failure of such Award to comply with
the requirements of Section 409A of the Code, or any applicable
regulations or guidance promulgated by the Secretary of the Treasury in
connection therewith, the Administrator shall have authority to take such
action to amend, modify, cancel or terminate the Plan or any Award as it deems
necessary or advisable, including without limitation:

 

(i)            Any amendment or
modification of the Plan or any Award to conform the Plan or such Award to the
requirements of Section 409A of the Code or any regulations or other
guidance thereunder (including, without limitation, any amendment or
modification of the terms of any Award regarding vesting, exercise, or the
timing or form of payment).

 

(ii)           Any cancellation or
termination of any unvested Award, or portion thereof, without any payment to
the Holder holding such Award.

 

(iii)          Any cancellation or
termination of any vested Award, or portion thereof, with immediate payment to
the Holder holding such Award of the amount otherwise payable upon the
immediate exercise of any such Award, or vested portion thereof, by such
Holder.

 

(iv)          Any such amendment,
modification, cancellation, or termination of the Plan or any Award may
adversely affect the rights of a Holder with respect to such Award without the
Holder’s consent.

 

(c)           Stockholder
Approval.  The Board shall obtain
stockholder approval of any Plan amendment to the extent necessary and
desirable to comply with Applicable Laws.

 

(d)           Effect of
Amendment or Termination.  Except as
provided in Section 17(b), above, no amendment, alteration, suspension or
termination of the Plan shall impair the rights of any Holder, unless mutually
agreed otherwise between the Holder and the Administrator, which agreement must
be in writing and signed by the Holder and the Company.  Termination of the Plan shall not affect the
Administrator’s ability to exercise the powers granted to it hereunder with
respect to Awards granted or awarded under the Plan prior to the date of such
termination.

 

(e)           Repricing
Prohibited.  Notwithstanding any
provision in this Plan to the contrary, absent approval of the stockholders of
the Company no Award may be amended to reduce the per Share exercise price of
the Shares subject to such Award below the per Share exercise price as of the
date the Award is granted.  In addition,
absent approval of the stockholders of the Company no Award may be granted in exchange
for, or in connection with, the cancellation or surrender of an Award having a
higher per Share exercise price.

 

21.           Stockholder
Approval.  The Plan will be submitted
for the approval of the Company’s stockholders within twelve (12) months after
the date of the Board’s adoption of the Plan. 
Awards may be granted or awarded prior to such stockholder approval,
provided that Awards not previously authorized under the Plan shall not be
exercisable, shall not vest and the

 

19

 

restrictions thereon shall not lapse prior to the time
when the Plan is approved by the stockholders, and provided further that if
such approval has not been obtained at the end of said twelve-month period, any
Award previously granted or awarded but not previously authorized under the
Plan shall thereupon be canceled and become null and void.

 

22.           Inability
to Obtain Authority.  The inability
of the Company to obtain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell
such Shares as to which such requisite authority shall not have been obtained.

 

23.           Reservation
of Shares.  The Company, during the
term of this Plan, shall at all times reserve and keep available such number of
Shares as shall be sufficient to satisfy the requirements of the Plan.

 

24.           Investment
Intent.  The Company may require a
Plan Holder, as a condition of exercising or acquiring stock under any Award, (i) to
give written assurances satisfactory to the Company as to the Holder’s
knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters and that he or
she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising rights under any Award; and (ii) to
give written assurances satisfactory to the Company stating that the Holder is
acquiring the stock subject to the Award for the Holder’s own account and not
with any present intention of selling or otherwise distributing the stock.  The foregoing requirements, and any
assurances given pursuant to such requirements, shall be inoperative if (A) the
issuance of the shares upon the exercise or acquisition of stock under the
applicable Award has been registered under a then currently effective
registration statement under the Securities Act or (B) as to any
particular requirement, a determination is made by counsel for the Company that
such requirement need not be met in the circumstances under the then applicable
securities laws.  The Company may, upon
advice of counsel to the Company, place legends on stock certificates issued
under the Plan as such counsel deems necessary or appropriate in order to
comply with applicable securities laws, including, but not limited to, legends
restricting the transfer of the stock.

 

25.           Governing
Law.  The validity and enforceability
of this Plan shall be governed by and construed in accordance with the laws of
the State  of Delaware without regard to
otherwise governing principles of conflicts of law.

 

20

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