Document:

Exhibit 10.26

 

STANDARD
INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE - NET

 

1.                                      Basic
Provisions (“Basic Provisions”)

 

1.1                                 Parties: This Lease (“Lease”),  dated for reference purposes only July 28, 2009, is  made by and between New Hampshire Apartments, Inc. (“Lessor”)  and
Wilshire State Bank (“Lessee”).

 

1..2(a)                Premises: That certain
portion of the project (as defined below), including all improvements thereon
or to be provided by Lessor under the terms of this Lease, commonly known by
the street address of 2424 Sepulveda Blvd., located
in the City of Torrance, County of
Los Angeles,  State of CA, with zip code 90501, as outlined on Exhibit
        attached hereto (“Premises”) and
generally described as (describe briefly the nature of the Premises): Approximately
2,360Square Feet.

 

In addition to Lessee’s rights to use and occupy the Premises as
hereinafter specified, Lessee shall have non-exclusive rights to the Common
Areas (as defined in Paragraph 2.7 below) as hereinafter specified, but shall
not have any rights to the roof, exterior walls or utility raceways of the
building containing the Premises (“Building”) or to any other buildings in the
Project. The Premises, the Building, the Common Areas, the land upon which they
are located, along with all other buildings and improvements thereon, are
herein collectively referred to as the “Project”. (See also Paragraph 2).

 

1.2(b)                  Parking: The use of
Unreserved Parking Spaces for Lessee’s employees, agents and guests, plus six (6)
Reserved Parking Spaces located at the front entrance to the Premises. (See
also Paragraph 2.6)

 

1.3                                 Term: Ten (10) years
and Zero (0) months (“Original Term”)  commencing July 1,
2009 (“Commencement Date”)  and ending June 30, 2019.

 

1.4                                 Early Possession: None

 

1.5                                 Base Rent: $2.29
per Square Foot  (“Base Rent”),
payable on the First (1st) day  of each month commencing July 1, 2009.  (See
also Paragraph 4).

 

x If this box is
checked, there are provisions in this Lease for the Base Rent to be adjusted.

 

1.6                                 Lessee’s
Share of Common Area Operating Expenses: Lessee’s Proportionate Share
(“Lessee’s Share”).

 

1.7                                 Base  Rent and Other Monies Paid Upon Execution:

 

(a)  Base Rent: $5,415.85 for the period
7/1/2009-6/30/2019.

(b)  Common Area Operating Expenses: CAM Charge will be
additionally included every month Your prorated share is 12.66%.

(c)  Security Deposit: $10,831.70 (“Security Deposit”). (See
also Paragraph 5)

(d)  Other: 3% Annual Increase.

(e)  Total Due Upon Execution of this Lease: $17,465.55 $

 

1.8                                 Agreed Use:
Retail banking and general office (See also Paragraph 6)

 

1.9                                 Insuring
Party: Lessor is the “Insuring Party.” (See also Paragraph 8)

 

1.10                           Real Estate
Broker: (See also Paragraph 15)

 

(a)  Representation: The following
real estate brokers (the Brokers) and brokerage  relationship exists in this transaction:

Listing Agent: PRG Investment

Selling Agent: Trans-Western

Commission: Commission will be paid to
Trans-Western in the amount of $4,000.00 & PRD Investment, Inc.
in the amount of $2,000.00 by the landlord upon lease executed by both parties.

 

2.

 

2.1                                 Letting.  Lessor hereby
leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the
term, at the rental, and upon all of the terms, covenants and conditions set
forth in this

 

Torrance Branch Lease Agreement

2424 Sepulveda Blvd., Torrance (July 2009)

 

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Lease. Unless otherwise provided herein, any statement of size set
forth in this Lease, or that may have been used in calculating Rent, is an
approximation which the Parties agree is reasonable and any payments based
thereon are not subject to revision whether or not the actual size is more or
less.

 

2.2                                 Condition.  Lessor shall
deliver that portion of the Premises contained within the Building (“Unit”) to
Lessee broom clean and free of debris on the Commencement Date or the Early
Possession Date, whichever first occurs (“Start Date”), and, so long as the
required service contracts described in Paragraph 7.1(b) below are obtained by Lessee
and in effect within thirty days following the Start Date, warrants that the
existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating
and air conditioning systems (“HVAC”), loading doors, if any, and all other
such elements in the Unit, other than those constructed by Lessee, shall be in
good operating condition on said date and that the roof, bearing walls and
foundation of the Unit shall be in good condition and free of material defects.
If a non-compliance with such warrant exists as of the Start Date, or if one of
such systems or elements should malfunction or fail within the appropriate
warranty period, Lessor shall, as Lessor’s sole obligation with respect to such
matter, except as otherwise provided in this Lease, promptly after receipt of
written notice from Lessee setting forth with specificity the nature and extent
of such non-compliance, malfunction or failure, rectify same at Lessor’s
expense. The warranty periods shall be as follows: (i) six months as to
the HVAC systems, (ii) 30 days as to the remaining systems and other
elements of the Unit and (iii) unlimited as to the roof, bearing walls and
foundation of the Unit. If Lessee does not give Lessor the required notice within
the appropriate warranty period, correction of any such non-compliance,
malfunction or failure shall be the obligation of Lessee at Lessee’s sole cost
and expense (except for the repairs to the fire sprinkler systems, roof, foundations,
and/or bearing walls see Paragraph 7).

 

2.3                                 Compliance.  Lessor warrants
that the improvements on the Premises and the Common Areas comply with the
building codes that were in effect at the time that each such improvement, or portion
thereof, was constructed, and also with all applicable laws, covenants or
restrictions of record, regulations, and ordinances in effect on the Start Date
(“Applicable Requirements”). Said warranty does not apply to the use to which
Lessee will put the Premises or to any Alterations or Utility Installations (as
defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is
responsible for determining whether or not the Applicable Requirements, and
especially the zoning, are appropriate for Lessee’s intended use, and
acknowledges that past uses of the Premises may no longer be allowed. If the
Premises do not comply with said warranty, Lessor shall, except as otherwise
provided, promptly after receipt of written notice from Lessee setting forth with
specificity the nature and extent of such non-compliance, rectify the same at
Lessor’s expense. If Lessee does not give Lessor written notice of a
non-compliance with this warranty within 6 months following the Start Date,
correction of that non-compliance shall be the obligation of Lessee at Lessee’s
sole cost and expense. If the Applicable Requirements are hereafter changed so
as to require during the term of this Lease the construction of an addition to
or an alteration of the Unit, Premises and/or Building, the remediation of any
Hazardous Substance, or the reinforcement or other physical modification of the
Unit, Premises and/or Building (“Capital Expenditure”),
Lessor and Lessee shall allocate the cost of such work as follows:

 

(a) Subject to Paragraph 2.3(c) below, if such Capital
Expenditures are required as a result of the specific and unique use of the
Premises by Lessee as compared with uses by tenants in general, Lessee shall be
fully responsible for the cost thereof, provided, however that if such Capital
Expenditure is required during the last 2 years of this Lease and the cost
thereof exceeds 6 months. Base Rent, Lessee may instead terminate this Lease
unless Lessor notifies Lessee, in writing, within 10 days after receipt of
Lessee’s termination notice that Lessor has elected to pay the difference
between the actual cost thereof and the amount equal to 6 months Base Rent. If
Lessee elects termination, Lessee shall deliver to Lessor written notice
specifying a termination date at least 90 days thereafter. Such termination
date shall, however, in no event be earlier than the last day that Lessee could
legally utilize the Premises without commencing such Capital Expenditure.

 

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(b) If such Capital Expenditure is not the result of the specific
and unique use of the Premises by Lessee (such as, governmentally mandated
seismic modifications), then Lessor and Lessee shall allocate the obligation to
pay for the portion of such costs reasonably attributable to the Premises
pursuant to the formula set out in Paragraph 7.1(d) provided, however,
that if such Capital Expenditure is required during the last 2 years of this
Lease or either Lessor or Lessee reasonably determines that it is not
economically feasible to pay its share thereof, such party shall have the
option to terminate this Lease upon 90 days prior written notice to the other
party unless the non-terminating party notifies the terminating party, in
writing, within 10 days after receipt of the termination notice that the
non-terminating party will pay for such Capital Expenditure. If Lessor does not
elect to terminate, and fails to tender its share of any such Capital
Expenditure, Lessee may advance such funds mid deduct same, with Interest, from
Rent until Lessor’s share of such costs have been fully paid. If Lessee is
unable to finance Lessor’s share, or if the balance of the Rent due and payable
for the remainder of this Lease is not sufficient to fully reimburse Lessee on
an offset basis, Lessee shall have the right to terminate this Lease upon 30
days written notice to Lessor.

 

(c) Notwithstanding the above, the provisions concerning Capital
Expenditures are intended to apply only to non-voluntary, unexpected, and new
Applicable Requirements. If the Capital Expenditures are instead triggered by
Lessee as a result of an actual or proposed change in use, change in intensity
of use, or modification to the Premises then, and in that event, Lessee shall
be fully responsible for the cost thereof, and Lessee shall not have any right
to terminate this Lease.

 

2.4                                 Acknowledgments. Lessee
acknowledges that: (a) it has been advised by Lessor and/or Brokers to
satisfy itself with respect to the condition of the Premises (including but not
limited to the electrical, HVAC and fire sprinkler systems, security,
environmental aspects, and compliance with Applicable Requirements and the
Americans with Disabilities Act), and their suitability for Lessee’s intended
use, (b) Lessee has made such investigation as it deems necessary with
reference to such matters and assumes all responsibility therefor as the same
relate to its occupancy of the Premises, and (c) neither Lessor, Lessor’s
agents, nor Brokers have made any oral or written representations or warranties
with respect to said makers other than as set forth in this Lease; it being
understood that Lessee has not conducted an environmental audit or an analysis
of compliance with the ADA, and that Lessee has relied on the representations
of Lessor with regard to these and other matters covered by Lessor’s representations
in this Lease, to wit: the warranty set forth in Section 2.3 above. In
addition, Lessor acknowledges that: (i) Brokers have made no
representations, promises or warranties concerning Lessee’s ability to honor
the Lease or suitability to occupy the Premises, and (ii) it is Lessor’s sole
responsibility to investigate the financial capability and/or suitability of
all proposed tenants.

 

2.5                                 Lessee as  Prior Owner/Occupant. The  warranties made
by Lessor in Paragraph 2 shall be of no force or effect if immediately prior to
the Start Date Lessee was the owner or occupant of the Premises. In such event,
Lessee shall be responsible for any necessary corrective work.

 

2.6                                 Vehicle
Parking.  Lessee shall be
entitled to use the number of Unreserved Parking Spaces and Reserved Parking
Spaces specified in Paragraph 1.2(b) on those portions of the Common Areas
designated from time to time by Lessor for parking. Lessee shall not use more
parking spaces than said number. Said parking spaces shall be used for parking by
vehicles no larger than full-size passenger automobiles or pick-up trucks,
herein called “Permitted Size Vehicles.” Lessor may regulate the loading and
unloading of vehicles by adopting Rules and Regulations as provided in
Paragraph 2.9. No vehicles other than Permitted Size Vehicles may be parked in
the Common Area without the prior written permission of Lessor.

 

(a) Lessee shall not permit or allow any
vehicles that belong to or are controlled by Lessee or Lessee’s employees,
suppliers, shippers, customers, contractors or invitees to be loaded, unloaded,
or parked in areas other than those designated by Lessor for such activities.

 

(b) Lessee shall not service or store
any vehicles in the Common Areas.

 

(c) If Lessee permits or allows any of the
prohibited activities described in this Paragraph 2.6, then Lessor shall have
the right, without notice, in addition to such other rights and remedies that
it may

 

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have,
to remove or tow away the vehicle involved and charge the cost to Lessee, which
cost shall be immediately payable upon demand by Lessor.

 

(d) In the event that Lessor begins
charging visitors for parking, Lessor shall provide one hour free parking to
Lessee’s customers and visitors at no charge to Lessee.

 

2.7                                 Common
Areas - Definition.  The term “Common Areas” is
defined as all areas and facilities outside the Premises and within the
exterior boundary line of the Project and interior utility raceways and
installations within the Unit that are provided and designated by the Lessor
from time to time for the general non-exclusive use of Lessor, Lessee and other
tenants of the Project and their respective employees, suppliers, shippers,
customers, contractors and invitees, including parking areas, loading and
unloading areas, trash areas, roadways, walkways, driveways and landscaped
areas.

 

2.8                                 Common
Areas - Lessee’s Rights. Lessor grants
to Lessee, for the benefit of Lessee and its employees, suppliers, shippers,
contractors, customers and invitees, during the term of this Lease, the
non-exclusive right to use, in common with others entitled to such use, the
Common Areas as they exist from time to time, subject to any rights, powers,
and privileges reserved by Lessor under the terms hereof or under the terms of
any rules and regulations or restrictions governing the use of the
Project. Under no circumstances shall the right herein granted to use the
Common Areas be deemed to include the right to store any property, temporarily
or permanently, in the Common Areas, Any such storage shall be permitted only
by the prior written consent of Lessor or Lessor’s designated agent, which
consent may be revoked at any time. In the event that any unauthorized storage
shall occur then Lessor shall have the right, without notice, in addition to
such other rights and remedies that it may have, to remove the property and
charge the cost to Lessee, which cost shall be immediately payable upon demand
by Lessor.

 

2.9                                 Common
Areas - Rules and Regulations.  Lessor or such other person(s) as
Lessor may appoint shall have the exclusive control and management of the
Common Areas and shall have the right, from time to time, to establish, modify,
amend and enforce reasonable rules and regulations (“Rules and
Regulations”) for the management, safety, care, and cleanliness of the grounds,
the parking and unloading of vehicles and the preservation of good order, as
well as for the convenience of other occupants or tenants of the Building and
the Project and their invitees. Lessee agrees to abide by and conform to all
such Rules and Regulations, and to cause its employees, suppliers,
shippers, customers contractors and invitees to so abide and conform. Lessor
shall not be responsible to Lessee for the non-compliance with said Rules and
Regulations by other tenants of the Project.

 

2.10                           Common
Areas - Changes.  Lessor shall have the right,
in Lessor’s sole discretion, from time to time:

 

(a) To make changes to the Common Areas
including, without limitation, changes in the location, size, shape and number
of driveways, entrances, parking spaces, parking areas, loading and unloading
areas, ingress, egress, direction of traffic, landscaped areas, walkways and
utility raceways;

 

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

 

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

 

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

 

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

 

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

 

3.                                       Term.

 

3.1                                 Term.  The Commencement Date,
Expiration Date and Original Term of this Lease are as specified in Paragraph
1.3.

 

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3.2                                 Early Possession.  If Lessee totally or
partially occupies the Premises prior to the Commencement Date, the obligation
the pay Base Rent shall be abated for the period of such early possession. All other
terms of this Lease (including but not limited to the obligation to pay Lessor’s
Share of Common Area Operating Expenses, Real Property Taxes and insurance
premiums and to maintain the Premises) shall, however, be in effect during such
period. Any such early possession shall not affect the Expiration Date.

 

3.3                                 Delay in
Possession.  Lessor agrees to use its
best commercially reasonable efforts to deliver possession of the Premises to
Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to
deliver possession as agreed, Lessor shall not be subject to any liability
therefor, nor shall such failure affect the validity of this Lease, Lessee
shall not, however, be obligated to pay Rent or perform its other obligations until
it receives possession of the Premises. If possession is not delivered within
60 days after the Commencement Date, Lessee may, at its option, by notice in
writing within 10 days after the end of such 60 day period, cancel this Lease,
in which event the Parties shall be discharged from all obligations hereunder.
If such written notice is not received by Lessor within said 10 day period.
Lessee’s right to cancel shall terminate. Except as otherwise provided, if
possession is not tendered to Lessee by the Start Date and Lessee does not
terminate this Lease, as aforesaid, any period of rent abatement that Lessee
would otherwise have enjoyed shall run from the date of delivery of possession
and continue for a period equal to what Lessee would otherwise have enjoyed
under the terms hereof, but minus any days of delay caused by the acts or
omissions of Lessee. If possession of the Premises is not delivered within 4
months after the Commencement Date, this Lease shall terminate unless other
agreements are reached between Lesser and Lessee, in writing.

 

3.4                                 Lessee
Compliance.  Lessor shall not be required
to tender possession of
the Premises to Lessee until Lessee complies with its obligation to
provide evidence of insurance (Paragraph 8.5). Pending delivery of such
evidence, Lessee shall be required to perform all of its obligations under this
Lease from and after the Start Date, including the payment of Rent,
notwithstanding Lessor’s election to withhold possession pending receipt of
such evidence of insurance. Further, if Lessee is required to perform any other
conditions prior to or concurrent with the Start Date, the Start Date shall
occur but Lessor may elect to withhold possession until such conditions are
satisfied.

 

4.                                       Rent.

 

4.1                                 Rent Defined.  All monetary obligations of
Lessee to Lessor under the terms of this Lease (except for the Security
Deposit) are deemed to be rent {“Rent”).

 

4.2                                 Common Area
Operating Expenses.  Lessee shall pay to Lessor
during the term hereof, in addition to the Base Rent, Lessee’s Share (as
specified in Paragraph 1.6) of all Common Area Operating Expenses, as
hereinafter defined, during each calendar year of the term of this Lease, in
accordance with the  following
provisions:

 

(a) “Common Area Operating
Expenses”  are defined, for purposes of this
Lease, as all costs incurred by Lessor relating to the ownership and operation
of the Project, including, but not limited to, the following:

 

(i) The operation, repair and maintenance, in neat, clean, good
order and condition of the following:

 

(aa) The Common Areas and Common Area improvements, including parking
areas, loading and unloading areas, trash areas, roadways, parkways, walkways,
driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting
facilities, fences and gates, elevators, roofs, and roof drainage systems.

 

(bb) Exterior signs and any tenant directories.

 

(cc) Any fire detection and/or sprinkler systems.

 

(ii) The cost of water, gas, electricity and telephone to service
the Common Areas and any utilities not separately metered.

 

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(iii) Trash disposal, pest control services, property management,
security services, and the costs of any environmental inspections.

 

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

 

(v) Real Property Taxes (as defined in Paragraph 10).

 

(vi) The cost of the premiums for the insurance maintained by
Lessor pursuant to Paragraph 8.

 

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

 

(viii) The cost of any Capital Expenditure to the Building or the
Project not covered under the provisions of Paragraph 2.3 provided; however,
that Lessor shall allocate the cost of any such Capital Expenditure over a 12
year period and Lessee shall not be required to pay more than Lessee’s Share of
1/144th of the cost of such Capital Expenditure in any given month.

 

(ix) Any other services to be provided by Lessor that are stated
elsewhere in this Lease to be a Common Area Operating Expense.

 

(b) Any Common Area Operating Expenses and Real Property Taxes
that are specifically attributable to the Unit, the Building or to any other
building in the Project or to the operation, repair and maintenance thereof,
shall be allocated entirely to such Unit, Building, or other building. However,
any Common Area Operating Expenses and Real Property Taxes that are not
specifically attributable to the Building or to any other building or to the operation,
repair and maintenance thereof, shall be equitably allocated by Lessor to all
buildings in the Project.

 

(c) The inclusion of the improvements, facilities and services set
forth in Subparagraph 4.2(a) shall not be deemed to impose an obligation
upon Lessor to either have said improvements or facilities or to provide those
services unless the Project already has the same, Lessor already provides the
services, or Lessor has agreed elsewhere in this Lease to provide the same or
some of them.

 

(d) Lessee’s Share of Common Area Operating Expenses may be
estimated by Lessor from time to time of Lessee’s Share of annual Common Area
Operating Expenses and the same shall be payable monthly during each 12 month
period of the Lease term, on the same day as the Base Rent is due hereunder.
Lessor shall deliver to Lessee within 60 days after the expiration of each
calendar year a reasonably detailed statement showing Lessee’s Share of the
actual Common Area Operating Expenses incurred during the preceding year. If
Lessee’s payments under this Paragraph 4.2(d) during the preceding year
exceed Lessee’s Share as indicated on such statement, Lessor shall credit the
amount of such over-payment against Lessee’s Share of Common Area Operating
Expenses  next becoming
due. If Lessee’s payments under this Paragraph 4.2(d) during the preceding
year were less than Lessee’s Share as indicated on such statement, Lessee shall
pay to Lessor the amount of the deficiency within 10 days after delivery by
Lessor to Lessee of the statement.

 

(e) In determining Lessee’s Share of the Common Area Operating
Expenses, all expense categories shall be adjusted to one hundred percent
(100%) project occupancy, and there shall be a five percent (5%) annual cap on
all landlord controlled expenses.

 

(f) Lessee shall have the right to conduct an audit, at its own
expense, of the determination of the Common Area Operating Expenses and Lessee’s
Share thereof. Lessor agrees to make available its books and records and its
employees, upon reasonable prior notice, to Lessee and its agents. To the
extent that the audit reveals that Lessee’s Share of Common Operating Expenses
is less than that actually paid by Lessee, Lessor shall return the excess
amount paid, within 10 days of receipt by Lessor of the results of the audit.

 

(g) Lessor shall provide to Lessee on or before the date of
execution of the Lease a line item breakdown of 2009 operating expense
projections and 2008 actual operating expenses.

 

(h) In the event that real estate taxes are increased due to a
sale, change in ownership, or reassessment of the Project, during the first
five (5) years of the Lease Term, any such increase shall be excluded from
the Common Area Operating Expenses.

 

4.3                                 Payment Lessee shall
cause payment of Rent to be received by Lessor in lawful money of the United
States, without offset or deduction (except as specifically permitted in this
Lease), on or before the day on which it is due. Rent for any period during the
term hereof which is for less than one full calendar month shall be prorated
based upon the actual number of days of said month.

 

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Payment
of Rent shall be made to Lessor at its address stated herein or to such other
persons or place as Lessor may from time to time designate in writing. Acceptance
of a payment which is less than the amount then due shall not be a waiver of
Lessor’s rights to the balance of such Rent, regardless of Lessor’s endorsement
of any check so stating. In the event that any check,  draft, or other instrument
of payment given by Lessee to Lessor is dishonored for any reason, Lessee
agrees to pay to Lessor the sum of $25 in addition to any late charges which
may be due.

 

5.                                       Security Deposit.  Lessee shall deposit with
Lessor upon execution hereof the Security Deposit as security for Lessee’s
faithful performance of its obligations under this Lease. If Lessee fails to
pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or
retain all or any portion of said Security Deposit for the payment of any
amount due Lessor or to reimburse or compensate Lessor for any liability,
expense, loss or damage which Lessor may suffer or incur by reason thereof. If
Lessor uses or applies all or any portion of the Security Deposit, Lessee shall
within 10 days after written request therefor, along with a statement setting
forth in reasonable detail an accounting for the portion so applied, deposit
monies with Lessor sufficient to restore said Security Deposit to the full
amount required by this Lease. If the Base Rent increases during the term of
this Lease, Lessee shall, upon written request from Lessor, deposit additional
monies with Lesser so that the total amount of the Security Deposit shall at
all times bear the same proportion to the increased Base Rent as the initial
Security Deposit bore to the initial Base Rent. Should the Agreed Use be
amended to accommodate a material, change in the business of Lessee or to
accommodate a sublessee or assignee, Lessor shall have the right to increase
the Security Deposit to the extent necessary, in Lessor’s reasonable judgment,
to account for any increased wear and tear that the Premises may suffer as a
result thereof. Lessor shall not be required to keep the Security Deposit
separate from its general accounts. Within 14 days after the expiration or
termination of this Lease, if Lessor elects to apply the Security Deposit only
to unpaid Rent, and otherwise within 30 days after the Premises have been
vacated pursuant to Paragraph 7.4(c) below, Lessor shall return that portion of
the Security Deposit not used or applied by Lessor. No part of the Security
Deposit shall be considered to be held in trust, to bear interest or to be prepayment
for any monies to be paid by Lessee under this Lease.

 

6.                                       Use.

 

6.1                                 Use. (a) Lessee
shall use and occupy the Premises only for the Agreed Use, or any other legal
use which is reasonably comparable thereto, and for no other purpose. Lessee
shall not use or permit the use of the Premises in a manner that is unlawful,
creates damage, waste or a nuisance, or that disturbs occupants of or causes
damage to neighboring premises or properties. Lessor shall not unreasonably withhold
or delay its consent to any written request for a modification of the Agreed
Use, so long as the same will not impair the structural integrity of the
improvements on the Premises or the mechanical or electrical systems therein,
and/or is not significantly more burdensome to the Premises. If Lessor elects
to withhold consent, Lessor shall within 7 days after such request give written
notification of same, which notice shall include an explanation of Lessor’s
objections to the change in the Agreed Use.

 

(b) Lessor agrees that no other portion
of the Project shall be used or operated for retail banking for the term of this
Lease and any extensions. Banking services include, without limitation, making-loans,
accepting deposits, cashing checks, safe deposit boxes, issuance of letters of
credit, cash management, ATMs and other services customarily associated with
retail banks.

 

(c) At no additional charge, Lessee
shall have the right to install an externally accessible ATM and deposit box.

 

6.2                                 Hazardous
Substances.

 

(a) Reportable Uses Require Consent. The term “Hazardous Substance”
as used in this Lease shall mean any product, substance, or waste whose
presence, use, manufacture, disposal, transportation, or release, either by
itself or in combination with other materials expected to be on the Premises,
is either: (i) potentially injurious to the public health, safety or
welfare, the environment or the

 

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Premises,
(ii) regulated or, prepared by any governmental authority, or (iii) a
basis for potential liability of Lessor to any governmental agency or third party
under any applicable state common law theory. Hazardous Substances shall
include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude
oil or any products, by-products or fractions thereof. Lessee shall not engage
in any activity in or on the Premises which constitutes a Reportable Use of
Hazardous Substances without the express prior written consent of Lessor and
timely compliance (at Lessee’s expense) with all Applicable Requirements. “Reportable
Use” shall mean (i) the installation or use of any above or below ground
storage tank, (ii) the generation, possession, storage, use,
transportation, or disposal of a Hazardous Substance that requires a permit
from, or with respect to which a report, notice, registration or business plan
is required to be filed with, any governmental authority, and/or (iii) the
presence at the Premises of a Hazardous Substance with respect to which any
Applicable Requirements requires that a notice be given to persons entering or
occupying the Premises or neighboring properties. Notwithstanding the
foregoing, Lessee may use any ordinary and customary materials reasonable required
to be used in the normal course of the Agreed Use, so long as such use is in
compliance with all Applicable Requirements, is not a Reportable Use, and does
not expose the Premises or neighboring property to any meaningful risk of
contamination or damage or expose Lessor to any liability therefor. In
addition, Lessor may condition its consent to any Reportable Use upon receiving
such additional assurances as Lessor reasonably deems necessary to protect
itself, the public, the Premises and/or the environment against damage,
contamination, injury and/or liability, including, but not limited to, the
installation (and removal on or before Lease expiration or termination) of
protective modifications (such as concrete encasements) and/or increasing the
Security Deposit.

 

(b) Duty to Inform. If a responsible officer of either party
hereto knows, or has reasonable cause to believe, that a Hazardous Substance
has come to be located in, on, under or about the Premises, such party shall
immediately give written notice of such fact to the other party, and provide
such other party with a copy of any report, notice, claim or other
documentation which it has concerning the presence of such Hazardous Substance.

 

(c) Lessee Remediation. Lessee shall not cause or permit any Hazardous
Substance to be spilled or released in, on, under, or about the Premises
(including through the plumbing or sanitary sewer system) and shall promptly,
at Lessee’s expense, take all investigatory and/or remedial action reasonably
recommended, whether or not formally ordered or required, for the cleanup of
any contamination of, and for the maintenance, security and/or monitoring of the
Premises or neighboring properties, that was caused or to the extent that it
was materially contributed to by Lessee, or pertaining to or involving any
Hazardous Substance brought onto the Premises during the term of this Lease, by
Lessee, or any third party acting at the direction of Lessee.

 

(d) Lessee Indemnification. Lessee shall indemnify, defend and
hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless
from and against any and all loss of rents and/or damages, liabilities,
judgments, claims, expenses, penalties, and reasonable out-of-pocket attorneys’
and consultants’ fees arising out of or involving any Hazardous Substance
brought onto the Premises by Lessee, or any third party acting at the direction
of Lessee (provided, however, that Lessee shall have no  liability under this Lease
with respect to underground migration of any Hazardous Substance under the
Premises from areas outside of the Premises). Lessee’s obligations shall
include, but not be limited to, the effects of any contamination or injury to
person, property or the environment created or suffered by Lessee, and the cost
of investigation, removal, remediation, restoration and/or abatement, and shall
survive the expiration or termination of this Lease. No termination,
cancellation or release agreement entered into by Lessor and Lessee shall
release Lessee from its obligations under this Lease with respect to Hazardous
Substances, unless specifically so agreed by Lessor in writing at the time of
such agreement.

 

(e) Lessor Indemnification. Lessor and its successors and assigns
shall indemnify, defend, reimburse and hold Lessee, its 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

 

8

 

Substances
on the Premises prior to the Start Date or which arise out of or involved the
gross negligence or willful misconduct of Lessor, its agents or employees.
Lessor’s obligations, as and when required by the Applicable Requirements,
shall include, but not be limited to, the cost of investigation, removal,
remediation, restoration and/or abatement, and shall survive the expiration or
termination of this Lease.

 

(f) Investigations and Remediations.
Lessor 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
Start Date, unless such remediation measure is required as a result of Lessee’s
use (including “Alterations”, as defined in paragraph 7.3(a) below) of the
Premises, in which event Lessee shall be responsible for such payment. Lessee
shall cooperate fully in any such activities at the request of Lessor,
including allowing Lessor and Lessor’s agents to have reasonable access to the
Premises at reasonable times in order to carry out Lessor’s investigative and
remedial responsibilities; it being understood that reasonable prior written
notice of such access must have been provided to Lessee and that Lessee shall
have the right to have its employee accompany Lessor and Lessor’s agents.

 

(g) Lessor Termination Option. If a Hazardous
Substance Condition (see Paragraph 9.1 (e)) occurs during the term of this
Lease, unless Lessee is legally responsible therefor (in which case Lessee
shall make the investigation and remediation thereof required by the Applicable
Requirements and this Lease shall continue in full force and effect, but
subject to Lessor’s rights under Paragraph 6.2(d) and Paragraph 13),
Lessor may, at Lessor’s option, either (i). Investigate and remediate such
Hazardous Substance Condition, if required, as soon as reasonably possible at
Lessor’s expense, in which event this Lease shall continue in full force and
effect, or (ii) if the estimated cost to remediate such condition exceeds
12 times the then monthly Base Rent or $100,000, whichever is greater, give
written notice to Lessee, within 30 days after receipt by Lessor of knowledge
of the occurrence of such Hazardous Substance Condition, of Lessor’s desire to
terminate this Lease as of the date 60 days following the date of such notice.
In the event Lessor elects to give a termination notice, Lessee may, within 10
days thereafter, give written notice to Lessor of Lessee’s commitment to pay
the amount by which the cost of the remediation of such Hazardous Substance
Condition exceeds an amount equal to 12 times the then monthly Base Rent or
$100,000, whichever is greater. Lessee shall provide Lessor with said funds or
satisfactory assurance thereof within 30 days following such commitment. In
such event, this Lease shall continue in full force and effect, and Lessor
shall proceed to make such remediation as soon as reasonably possible after the
required funds are available. If Lessee does not give such notice and provide the
required funds or assurance thereof within the time provided, this  Lease shall terminate as of
the date specified in Lessor’s notice of termination. In addition, if the time required
to complete such remediation is expected to exceed, or actually does exceed,
three months, then Lessee may terminate the Lease upon written notice to
Lessor.

 

6.3                                 Lessee’s
Compliance with Applicable Requirements.  Except as otherwise provided
in this Lease, Lessee shall, at Lessee’s sole expense, fully, diligently and in
a timely manner, materially comply with all Applicable Requirements, the
requirements of any applicable fire insurance underwriter or rating bureau, and
the recommendations of Lessor’s engineers and/or consultants which relate in
any manner to the Premises, without regard to whether said requirements are now
in effect or become effective after the Start Date. Lessee shall, within 10
days after receipt of Lessor’s written request, provide Lessor with copies of
all permits and other documents, and other information evidencing Lessee’s
compliance with any Applicable Requirements specified by Lessor, and shall
immediately upon receipt, notify Lessor in writing (with copies of any
documents involved) of any threatened or actual claim, notice, citation,
warning, complaint or report pertaining to or  involving the failure of Lessee or the
Premises to comply with any Applicable Requirements.

 

6.4                                 Inspection;
Compliance.  Lessor and Lessor’s “Lender”
(as defined in Paragraph 30) and consultants shall have the right to enter into
Premises at any time, in the case of an emergency, and otherwise at reasonable
times, during business hours and upon prior written notice to Lessee for the
purpose of inspecting the condition of the Premises and for verifying
compliance by Lessee with this Lease. Lessee shall have the right to have its
employee accompany Lessor and Lessor’s

 

9

 

agents
during any non-emergency inspection. The cost of any such inspections shall be
paid by Lessor, unless a violation of Applicable Requirements, or a
contamination is found to exist or be imminent,. In such case, Lessee shall
upon request reimburse Lessor for the reasonable out-of-pocket cost of such
inspection, so long as such inspection is reasonably related to the violation or
contamination.

 

7.                                       Maintenance; Repairs, Utility Installations; Trade Fixtures and
Alterations.

 

7.1                                 Lessee’s  Obligations.

 

(a) In General.  Subject to the provisions of Paragraph 2.2 (Condition),
2.3 (Compliance), 6.3: (Lessee’s
Compliance with Applicable Requirements), 7.2 (Lessor’s Obligations), 9 (Damage
or Destruction), and 14(Condemnation), Lessee shall, at Lessee’s sole expense,
keep the Premises, Utility Installations (intended for Lessee’s exclusive use,
no matter where located), and Alterations in good order, condition and repair
(whether or not the need for such repairs occurs as a result of Lessee’s use,
any prior use, the elements or the age of such portion of the Premises),
including, but not limited to, all equipment or facilities, such as plumbing,
HVAC equipment, electrical, lighting facilities, boilers, pressure vessels,
fixtures, interior walls, interior surfaces of exterior walls, ceilings,
floors, windows, doors, plate glass, and skylights but excluding any items
which are the responsibility of Lessor pursuant to Paragraph 7.2. Lessee, in
keeping the Premises in good order, condition and repair, shall exercise and
perform good maintenance practices, specifically including the procurement and
maintenance of the service contracts required by Paragraph 7.1(b) below. Lessee’s
obligations shall include restorations, replacements or renewals when necessary
to keep the Premises and all improvements thereon or a part thereof in good
order, condition and state of repair.

 

(b) Service
Contracts.  Lessee shall, at Lessee’s sole
expense, procure and maintain contracts, with copies to Lessor, in customary
form and substance for, and with contractors specializing and experienced in
the maintenance of the following equipment and improvements, if any, if and
when installed on the Premises: (i) HVAC equipment, (ii) boiler and
pressure vessels and (iii) clarifiers,. However, Lessor reserves the
right, upon notice to Lessee, to procure and maintain any or all of such
service contracts, and if Lessor so elects, Lessee shall reimburse Lessor, upon
demand, for the reasonable cost thereof.

 

(c) Failure
to Perform.  If Lessee fails to perform Lessee’s
obligations under this Paragraph 7.1, Lessor may enter upon the Premises after
10 days’ prior written notice to Lessee (except in the case of an emergency, in
which case no notice shall be required), perform such obligations on Lessee’s
behalf, and put the Premises in good order, condition and repair, and Lessee
shall promptly reimburse Lessor for the reasonable cost thereof. Lessee shall
have the right to have its employee accompany Lessor and Lessor’s agents during
any such entry to repair.

 

(d) Replacement.  Subject
to Lessee’s indemnification of Lessor as set forth in Paragraph 8.7 below, and
without relieving Lessee of liability resulting from Lessee’s failure to
exercise and perform good maintenance practices, if an item described in
Paragraph 7.1(b) cannot be repaired other than at a cost which is in
excess of 50% of the cost of replacing such item, then such item shall be
replaced by Lessor, and the cost thereof shall be prorated between the Parties
and Lessee shall only be obligated to pay, each month during the remainder of
the term of this Lease, on the date on which Base Rent is due, an amount equal
to the product of multiplying the cost of such replacement by a fraction, the
numerator of which is one, and the denominator of which is 144 (i e. l/144th of
the cost per month).

 

7.2                                 Lessor’s
Obligations.  Subject to the provisions of
Paragraphs 2.2 (Condition), 2.3 (Compliance), 4.2 (Common Area Operating
Expenses), 6 (Use), 7.1 (Lessee’s Obligations), 9 (Damage or Destruction) and
14 (Condemnation), Lessor, subject to reimbursement pursuant to Paragraph 4.2,
shall keep in good order, condition and repair the foundations, exterior walls,
structural condition of interior bearing walls, exterior roof, fire sprinkler
system, Common Area fire alarm and/or smoke detection systems, fire hydrants,
parking lots, walkways, parkways, driveways, landscaping, fences, signs and
utility systems serving the Common Areas and all parts thereof, as well as
providing the services for which there is a Common Area Operating Expense
pursuant to Paragraph 4.2. Lessor shall not be obligated to paint the exterior
or interior surfaces of exterior walls nor shall Lessor be obligated to
maintain, repair or replace windows, doors or plate glass of the Premises.
Lessee 

 

10

 

expressly
waives the benefit of any statute now or hereafter in effect to the extent it
is inconsistent with the terms of this Lease.

 

7.3                                                                                 Utility Installations; Trade Fixtures; Alterations.

 

(a) Definitions.  The
term “Utility installations” refers to all floor and window coverings, air
lines, power panels, electrical distribution, security and fire protection
systems, communication systems, lighting fixtures, HVAC equipment, plumbing,
and fencing in or on the Premises. The term “Trade Fixtures” shall mean Lessee’s
machinery and equipment that can be removed without doing material damage to
the Premises. The term “Alterations” shall mean any modification of the
improvements, other than Utility installations or Trade Fixtures, whether by
addition or deletion. “Lessee Owned Alterations and/or Utility Installations”
are defined as Alterations and/or Utility Installations made by Lessee that are
not yet owned by Lessor pursuant to Paragraph 7.4(a).

 

(b) Consent.  Lessee
shall not make any Alterations or Utility Installations to the Premises without
Lessor’s prior written consent, which will not be unreasonably withheld or
delayed. Lessee may, however, make non-structural Utility Installations to the
interior of the Premises (excluding the roof) without such consent but upon
notice to Lessor, as long as they are not visible from the outside, do not
involve puncturing, relocating or removing the roof or any existing walls, and
the cumulative cost thereof during this Lease as extended does not exceed a sum
equal to 3 month’s Base Rent in the aggregate or a sum equal to one month’s
Base Rent in any one year. Notwithstanding the foregoing, Lessee shall not make
or permit any roof penetrations and/or install anything on the roof without the
prior written approval of Lessor. Any Alterations or Utility Installations that
Lessee shall desire to make and which require the consent of the Lessor shall
be presented to Lessor in written form with detailed plans. Consent shall be
deemed conditioned upon Lessee’s (i) acquiring all applicable governmental
permits, (ii) furnishing Lessor with copies of both the permits and the plans
and specifications prior to commencement of the work, and (iii) compliance
with all conditions of said permits and other Applicable Requirements in a
prompt and expeditious manner. Any Alterations or Utility Installations shall be
performed in a workmanlike manner with good and sufficient materials. Lessee
shall promptly upon completion furnish Lessor with as-built plans and
specifications. For work which costs an amount in excess of one month’s Base
Rent, Lessor may condition its consent upon Lessee providing a lien and
completion bond in an amount equal to 150% of the estimated cost of such
Alteration or Utility Installation and/or upon Lessee’s posting an additional
Security Deposit with Lessor.

 

(c) Indemnification.  Lessee
shall pay, when due, all claims for labor or materials furnished or alleged to
have been furnished to or for Lessee at or for use on the Premises, which
claims are or may be secured by any mechanic’s or materialman’s lien against
the Premises or any interest therein. Lessee shall give Lessor not less than 10
days notice prior to the commencement of any work in, on or about the Premises,
and Lessor shall have the right to post notices of non-responsibility. If
Lessee shall contest the validity of any such lien, claim or demand, then Lessee
shall, at its sole expense defend and protect itself, Lessor and the Premises
against the same and shall pay and satisfy any such adverse judgment that may
be rendered thereon before the enforcement thereof. If Lessor shall require,
Lessee shall furnish a surety bond in an amount equal to 150% of the amount of
such contested lien, claim or demand, indemnifying Lessor against liability for
the same. If Lessor elects to participate in any such action, Lessee shall pay
Lessor’s reasonable attorneys’ fees and costs.

 

7.4                                 Ownership;
Removal; Surrender; and Restoration.

 

(a) Ownership.  Subject to Lessor’s right to require removal or
elect ownership as hereinafter provided, all Alterations and Utility
Installations made by Lessee shall be the property of Lessee, but considered a
part of the Premises. Lessor may, at any time, elect in writing to be the owner
of all or any specified part of the Lessee Owned Alterations and Utility
Installations. Unless otherwise instructed per paragraph 7.4(b) hereof,
all Lessee Owned Alterations and Utility Installations shall, at the expiration
or termination of this Lease, become the property of Lessor and be surrendered
by Lessee with the Premises.

 

11

 

(b)   Removal. Lessor may require that any or all Lessee Owned
Alterations or Utility Installations be removed by the expiration or
termination of this Lease. Lessor may require the removal at any time of all or
any part of any Lessee Owned Alterations or Utility Installations made without
the required consent.

 

(c)   Surrender; Restoration. Lessee shall
surrender the Premises by the Expiration Date or any earlier termination date,
with all of the improvements, parts and surfaces thereof broom clean and free of
debris, and in good operating order, condition and state of repair, ordinary
wear and tear excepted. “Ordinary wear and tear” shall not include any damage
or deterioration that would have been prevented by good maintenance practice.
Notwithstanding the foregoing, if this Lease is for 12 months or less, then
Lessee shall surrender the Premises in the same condition as delivered to
Lessee on the Start Date with NO allowance for ordinary wear and tear. Lessee
shall repair any damage occasioned by the installation, maintenance or removal
of Trade Fixtures, Lessee owned Alterations and/or Utility Installations,
furnishings, and equipment as well as the removal of any storage tank installed
by or for Lessee. Lessee shall also completely remove from the Premises any and
all Hazardous Substances brought onto the Premises by or for Lessee, or any
third party (except Hazardous Substances which were deposited via underground
migration from areas outside of the Project) even if such removal would require
Lessee to perform or pay for work that exceeds statutory requirements. Trade
Fixtures shall remain the property of Lessee and shall be removed by Lessee.
The failure by Lessee to timely vacate the Premises pursuant to this Paragraph
7.4(c) without the express written consent of Lessor shall constitute a
holdover under the provisions of Paragraph 26 below.

 

8.                          Insurance; Indemnity.

 

8.1                              Payment of Premiums. The cost of the premiums for
the insurance policies required to be carried by Lessor, pursuant to Paragraphs
8.2(b), 8.3(a) and 8.3(b), shall be a Common Area Operating Expense.
Premiums for policy periods commencing prior to, or extending beyond, the term
of this

 

Lease shall be prorated to coincide with the
corresponding Start Date or Expiration Date.

 

8.2                              Liability Insurance.

 

(a)   Carried by
Lessee. Lessee shall obtain and keep in force a Commercial General
Liability policy of insurance protecting Lessee and Lessor as an additional
insured against claims for bodily injury, personal injury and property damage
based upon or arising out of the ownership, use, occupancy or maintenance of
the Premises and all areas appurtenant thereto. Such insurance shall be on an
occurrence basis providing single limit coverage in an amount not less than $l,000,000
per occurrence with an annual aggregate of not less than $2,000,000, an
“Additional Insured-Managers or Lessors of Premises Endorsement and contain the
“Amendment of the Pollution Exclusion Endorsement” for damage caused by heat,
smoke or fumes from a hostile fire. The policy shall not contain any intra-insured
exclusions as between insured persons or organizations, but shall include
coverage for liability assumed under this Lease as an insured contract” for the
performance of Lessee’s indemnity obligations under this Lease. The limits of
said insurance shall not, however, limit the liability of Lessee nor relieve
Lessee of any obligation hereunder. All insurance carried by Lessee shall be
primary to and not contributory with any similar insurance carried by Lessor,
whose insurance shall be considered excess insurance only.

 

(b)   Carried by
Lessor. Lessor shall maintain liability insurance as
described in Paragraph 8.2(a), in addition to, and not in lieu of, the
insurance required to be maintained by Lessee. Lessee shall not be named as an
additional insured therein.

 

8.3                               Property Insurance - Building,
Improvements and Rental Value.

 

(a)   Building
and Improvements. Lessor shall obtain and keep in force a policy or
policies of insurance in the name of Lessor, with loss payable to Lessor, any
ground-lessor, and to any Lender insuring loss or damage to the Premises. The
amount of such insurance shall be equal to the full replacement cost of the
Premises, as the same shall exist from time to time, or the amount required by
any Lender, but in no event more than the commercially reasonable and available
insurable value

 

12

 

thereof.
Lessee Owned Alterations and Utility Installations, Trade Fixtures, and
Lessee’s personal property shall be insured by Lessee under Paragraph 8.4. If
the coverage is available and commercially appropriate, such policy or policies
shall insure against all risks of direct physical less or damage (except the
perils of flood and/or earthquake unless required by a Lender), including
coverage for debris removal and the enforcement of any Applicable Requirements
requiring the upgrading, demolition, reconstruction or replacement of any
portion of the Premises as the result of a covered loss. Said policy or
policies shall also contain an agreed valuation provision in lieu of any coinsurance
clause, waiver of subrogation, and inflation guard protection causing an
increase in the annual property insurance coverage amount by a factor of not
less than the adjusted U.S. Department of Labor Consumer Price Index for All
Urban Consumers for the city nearest to where the Premises are located. If such
insurance coverage has a deductible clause, the deductible amount shall not
exceed $1,000 per occurrence.

 

(b)   Rental
Value. Lessor shall also obtain and keep in force a policy or policies in the
name of Lessor with loss payable to Lessor and any Lender, insuring the loss of
the full Rent for one year with an extended period of indemnity for an
additional 180 days (“Rental Value insurance”). Said insurance shall contain an
agreed valuation provision in lieu of any coinsurance clause, and the amount of
coverage shall be adjusted annually to reflect the projected Rent otherwise
payable by Lessee, for the next 12 month period.

 

(c)   Adjacent Premises.
Lessee shall pay for any increase in the premiums for the property
insurance of the Building and for the Common Areas or other buildings in the
Project if said increase is caused by Lessee’s acts, omissions, use or
occupancy of the Premises.

 

(d)   Lessee’s  Improvements. Since Lessor is the Insuring Party,
Lessor shall not be required to insure Lessee Owned Alterations and Utility
Installations unless the item in question has become the property of Lessor
under the terms of this Lease.

 

8.4                                Lessee’s Property;
Business Interruption Insurance.

 

(a)   Property
Damage. Lessee shall obtain and maintain insurance coverage
on all of Lessee’s personal property, Trade Fixtures, and Lessee Owned
Alterations and Utility Installations. Such insurance shall be full replacement
cost coverage with a deductible of not to exceed $1,000 per occurrence. The
proceeds from any such insurance shall be used by Lessee for the replacement of
personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations.
Lessee shall provide Lessor with written evidence that such insurance is in
force.

 

(b)   Business
Interruption. Lessee shall obtain and maintain loss of income and
extra expense insurance in amounts as will reimburse Lessee for direct or
indirect loss of earnings attributable to all perils commonly insured against
by prudent lessees in the business of Lessee or attributable to prevention of
access to the Premises as a result of such perils.

 

(c)   No
Representation of Adequate Coverage. Lessor makes no representation
that the limits or forms of coverage of insurance specified herein are adequate
to cover Lessee’s property, business operations or obligations under this
Lease.

 

8.5                               Insurance Policies. Insurance required herein
shall be by companies
duly licensed or admitted to transact business in the state where the Premises
are located, and maintaining during the policy term a “General Policyholders
Rating” of at least B+, V, as set forth in the most current issue of “Best’s Insurance
Guide”, or such other rating as may be required by a Lender. Lessee shall not
do or permit to be done anything which invalidates the required insurance
policies. Lessee shall, prior to the Start Date, deliver to Lessor certified
copies of policies of such insurance or certificates evidencing the existence
and amounts of the required insurance. No such policy shall be cancelable or
subject to modification except after 30 days prior written notice to Lessor.
Lessee shall, at least 30 days prior to the expiration of such policies, furnish
Lessor with evidence of renewals or “insurance binders” evidencing renewal
thereof, or Lessor may order such insurance and charge the cost thereof to
Lessee, which amount shall be payable by Lessee to Lessor upon demand. Such
policies shall be for a term of at least one year, or the length of the
remaining term of this Lease, whichever is less. If either Party shall fail to
procure and

 

13

 

maintain the insurance required to be carried by it,
the other Party may, but shall not be required to, procure and maintain the
same.

 

8.6                               Waiver of Subrogation. Without affecting any
other rights or remedies, Lessee and Lessor each hereby release and relieve the
other, and waive their entire right to recover damages against the other, for
loss of or damage to its property arising out of or incident to the perils
required to be insured against herein. The effect of such releases and waivers
is not limited by the amount of insurance carried or required, or by any
deductibles applicable hereto. The Parties agree to have their respective
property damage insurance carriers waive any right to subrogation that such
companies may have against Lessor or Lessee, as the case may be, so long as the
insurance is not invalidated thereby.

 

8.7                                Indemnity.  Except for Lessor’s gross
negligence or willful misconduct, Lessee shall indemnify, protect, defend and
hold harmless the Premises, Lessor and its agents, Lessor’s master or ground
lessor, partners and Lenders, from and against any and all claims, loss of
rents and/or damages, liens, judgments, penalties, attorneys’ and consultants)
fees, expenses and/or liabilities arising out of, involving, or in connection with,
the use and/or occupancy of the Premises by Lessee. If any action or proceeding
is brought against Lessor by reason of any of the foregoing matters, Lessee shall
upon notice defend the same at Lessee’s expense by counsel reasonably
satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense.
Lessor need not have first paid any such claim in order to be defended or
indemnified.

 

8.8                              Exemption of Lessor from Liability. Lessor shall not be liable
for injury or damage to the person or goods, wares, merchandise or other
property of Lessee, Lessee’s employees, contractors, invitees, customers, or
any other person in or about the Premises, whether such damage or injury is
caused by or results from fire, steam, electricity, gas, water or rain, or from
the breakage, leakage, obstruction or other defects of pipes, fire sprinklers,
wires, appliances, plumbing, HVAC or lighting fixtures, or from any other
cause, whether the said injury or damage results from conditions arising upon
the Premises or upon other portions of the Building, or from other sources or places.
Lessor shall not be liable for any damages arising from any act or neglect of
any other tenant of Lessor nor from the failure of Lessor to enforce the
provisions of any other lease in the Project. Notwithstanding Lessor’s
negligence or breach of this Lease, Lessor shall under no circumstances be liable
for injury to Lessee’s business or for any loss of income or profit therefrom.
It being understood, however, that this section will not serve to limit the
liability of Lessor for injury or losses caused by its willful misconduct.

 

9.                           Damage or
Destruction.

 

9.1                             Definitions.

 

(a)   “Premises
Partial Damage” shall mean damage or destruction to the improvements
on the Premises, other than Lessee Owned Alterations and Utility Installations,
which can reasonably be repaired in 3 months or less from the date of the
damage or destruction, and the cost thereof does not exceed a sum equal to 6
month’s Base Rent. Lessor shall notify Lessee in writing within 30 days from
the date of the damage or destruction as to whether or not the damage is Partiar
or Total.

 

(b)  “Premises
Total Destruction” shall mean damage or destruction to the improvements
on the Premises, other than Lessee Owned Alterations and Utility Installations
and Trade Fixtures, which cannot reasonably be repaired in 3 months or less
from the date of the damage or destruction and/or the cost thereof exceeds a
sum equal to 6 months Base Rent. Lessor shall notify Lessee in writing within
30 days from the date of the damage or destruction as to whether or not the
damage is Partial or Total.

 

(c)   “Insured
Loss” shall mean damage or destruction to improvements on the Premises, other
than Lessee Owned Alterations and Utility Installations and Trade Fixtures,
which was caused by an event required to be covered by the insurance described
in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits
involved.

 

(d)   “Replacement
Cost” shall mean the cost to repair or rebuild the improvements owned by Lessor
at the time of the occurrence to their condition existing immediately prior
thereto, including

 

14

 

demolition, debris removal and upgrading required by the operation of
Applicable Requirements, and without deduction for depreciation.

 

(e) “Hazardous Substance Condition” shall mean
the occurrence or discovery of a condition involving the presence of, or a
contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on,
or under the Premises.

 

9.2                             Partial Damage
- Insured Loss. If a Premises Partial Damage that is an Insured Loss
occurs, then Lessor shall, at Lessor’s expense, repair such damage (but not
Lessee’s Trade Fixtures or Lessee Owned Alterations and Utility Installations)
as soon as reasonably possible and this Lease shall continue in full force and
effect;. Notwithstanding the foregoing, if the required insurance was not in
force or the insurance proceeds are not sufficient to effect such repair, the
Insuring Party shall promptly contribute the shortage in proceeds as and when
required to complete said repairs. In the event, however, such shortage was due
to the fact that, by reason of the unique nature of the improvements, full
replacement cost insurance coverage was not commercially reasonable and available,
Lessor shall have no obligation to pay for the shortage in insurance proceeds
or to fully restore the unique aspects of the Premises unless Lessee provides
Lessor with the funds to cover same, or adequate assurance thereof, within 10
days following receipt of written notice of such shortage and request therefor.
If Lessor receives said funds or adequate assurance thereof within said 10 day
period, the party responsible for making the repairs shall complete them as
soon as reasonably possible and this Lease shall remain in full force and effect.
If such funds or assurance are not received, Lessor shall elect by written
notice to Lessee within 10 days thereafter to: (i) make such restoration
and repair as is commercially reasonable with Lessor paying any shortage in
proceeds, in which case this Lease shall remain in full force and effect, or (ii) have
this Lease terminate 30 days thereafter. Lessee shall not be entitled to
reimbursement of any funds contributed by Lessee to repair any such damage or destruction.
Premises Partial Damage due to flood or earthquake shall be subject to
Paragraph 9.3, notwithstanding that there may be some insurance coverage, but
the net proceeds of any such insurance shall be made available for the repairs
if made by either Party.

 

9.3                                Partial Damage - Uninsured Loss. If a Premises Partial Damage
that is not an Insured Loss occurs, unless caused by a negligent or willful act
of Lessee (in which event Lessee shall make the repairs at Lessee’s expense),
Lessor shall either: (i) repair such damage as soon as reasonably possible
at Lessor’s expense, in which event this Lease shall continue in full force and
effect, or (ii) terminate this Lease by giving written notice to Lessee
within 30 days after receipt by Lessor of knowledge of the occurrence of such
damage. Such termination shall be effective 60 days following the date of such
notice. In the event Lessor elects to terminate this Lease, Lessee shall have
the right within 10 days after receipt of the termination notice to give
written notice to Lessor of Lessee’s commitment to pay for the repair of such
damage without reimbursement from Lessor. Lessee shall provide Lessor with said
funds or satisfactory assurance thereof within 30 days after making such
commitment. In such event this Lease shall continue in full force and effect,
and Lessor shall proceed to make such repairs as soon as reasonably possible
after the required funds are available. If Lessee does not make the required
commitment, this Lease shall terminate as of the date specified in the
termination notice.

 

9.4                                Total Destruction. Notwithstanding any other provision hereof,
if a Premises Total Destruction occurs, this Lease shall terminate 60 days
following such Destruction. If the damage or destruction was caused by the
gross negligence or willful misconduct of Lessee, Lessor shall have the right
to recover Lessor’s damages from Lessee, except as provided in Paragraph 8.6.

 

9.5                                Damage Near End of Term. If at any time during the
last 6 months of this Lease (determined for this purpose with the assumption
that Lessee shall exercise any option to extend the term of the Lease) there is
damage for which the cost to repair exceeds six months Base Rent, whether or
not an Insured Loss, Lessor may terminate this Lease effective 60 days
following the date of occurrence of such damage by giving a written termination
notice to Lessee within 30 days after the date of occurrence of such damage.
Notwithstanding the foregoing, if Lessee at that time has an exercisable option
to extend this Lease or to purchase the Premises, then Lessee may preserve this
Lease by, (a) exercising such option and (b) providing Lessor with
any shortage in insurance proceeds (or

 

15

 

adequate
assurance thereof needed to make the repairs on or before the earlier of (i) the
date which is 10 days after Lessee’s receipt of Lessor’s written notice purporting
to terminate this Lease, or (ii) the day prior to the date upon which such
option expires. If Lessee duly exercises such option during such period and provides
Lessor with funds (or adequate assurance thereof) to cover any shortage in
insurance proceeds, Lessor shall, at Lessor’s commercially reasonable expense,
repair such damage as soon as reasonably possible and this Lease shall continue
in full force and effect. If Lessee fails to exercise such option and provide
such funds or assurance during such period, then this Lease shall terminate on
the date specified in the termination notice and Lessee’s option shall be
extinguished.

 

9.6                              Abatement
of Rent; Lessee’s Remedies.

 

(a)   Abatement. In the event of
Premises Partial Damage or Premises Total Destruction or a Hazardous Substance
Condition for which Lessee is not responsible under this Lease, the Rent
payable by Lessee for the period required for the repair, remediation or
restoration of such damage shall be abated in proportion to the degree to which
Lessee’s use of the Premises is impaired, but not to exceed the proceeds
received from the Rental Value insurance. All other obligations of Lessee
hereunder shall be performed by Lessee, and Lessor shall have no liability for
any such damage, destruction, remediation, repair or restoration except as
provided herein.

 

(b)   Remedies. If Lessor shall
be obligated to repair or restore the Premises and does not commence, in a
substantial and meaningful way, such repair or restoration within 90 days after
such obligation shall accrue, Lessee may, at any time prior to the commencement
of such repair or restoration, give written notice to Lessor and to any Lenders
of which Lessee has actual notice, of Lessee’s election to terminate this Lease
on a date not less than 60 days following the giving of such notice. If Lessee
gives such notice and such repair or restoration is not commenced within 30
days thereafter, this Lease shall terminate as of the date specified in said
notice. If the repair or restoration is commenced within such 30 days, this
Lease shall continue in full force and effect. “Commence” shall mean either the
unconditional authorization of the preparation of the required plans, or the
beginning of the actual work on the Premises, whichever first occurs.

 

9.7                              Termination; Advance Payments. Upon termination of this
Lease pursuant to Paragraph 6.2(9) or Paragraph 9, an equitable adjustment
shall be made concerning advance Base Rent and any other advance payments made
by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of
Lessee’s Security Deposit as has not been, or is not then requked to be, used
by Lessor.

 

9.8                               Waive Statutes. Lessor and Lessee agree that the terms of
this Lease shall govern the effect of any damage to or destruction of the
Premises with respect to the termination of this Lease and hereby waive the
provisions of any present or future statute to the extent inconsistent herewith.

 

10.                      Real
Property Taxes.

 

10.1                              Definition, As used herein, the term. ’Real Property Taxes shall  include any form of
assessment; real estate, general, special, ordinary or extraordinary, or rental
levy or tax (other than inheritance, personal income or estate taxes);
improvement bond; and/or license fee imposed upon or levied against any legal
or equitable interest of Lessor in the Project, Lessor’s right to other income
therefrom, and/or Lessor’s business of leasing, by any authority having the
direct or indirect power to tax and where the funds are generated with
reference to the Project address and where the proceeds so generated are to be
applied by the city, county or other local taxing authority of a jurisdiction
within which the Project is located. The term “Real Property Taxes” shall also
include any tax, fee, levy, assessment or charge, or any increase therein,
imposed by reason of events occurring during the term of this Lease, including
but not limited to, a change in the ownership of the Project or any portion
thereof or a change in the improvements thereon. In calculating Real Property
Taxes for any calendar year, the Real Property Taxes for any real estate tax
year shall be included in the calculation of Real Property Taxes for such
calendar year based upon the number of days which such calendar year and tax
year have in common.

 

16

 

10.2                         Payment of
Taxes.  Lessor shall
pay the Real Property Taxes applicable to the Project, and except as otherwise
provided in Paragraph 10.3, any such amounts shall be included in the
calculation of Common Area Operating Expenses in accordance with the provisions
of Paragraph 4.2.

 

10.3                        Additional
Improvements.  Common Area Operating Expenses
shall not include Real Property Taxes specified in the tax assessor’s records
and work sheets as being caused by additional improvements placed upon the
Project by other lessees or by Lessor for the exclusive enjoyment of such other
lessees. Notwithstanding Paragraph 10.2 hereof, Lessee shall, however, pay to
Lessor at the time Common Area Operating Expenses are payable under Paragraph
4.2, the entirety of any increase in Real Property Taxes if assessed solely by
reason of Alterations, Trade Fixtures or Utility Installations placed upon the
Premises by Lessee or at Lessee’s request.

 

10.4                              Joint Assessment. If the
Building is not separately assessed, Real Property Taxes allocated to the
Building shall be an equitable proportion of the Real Property Taxes for all of
the land and improvements included within the tax parcel assessed, such
proportion to be determined by Lessor from the

 

respective valuations assigned in the assessor’s work
sheets or such other information as may be reasonably available. Lessor’s
reasonable determination thereof, in good faith, shall be conclusive.

 

10.5                              Personal
Property Taxes.  Lessee shall pay prior to
delinquency all taxes assessed against and levied upon Lessee Owned Alterations
and Utility Installations, Trade Fixtures, furnishings, equipment and all personal
property of Lessee contained in the Premises. When possible Lessee shall cause
its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings,
equipment and all other personal property to be assessed and billed separately
from the real property of Lessor. If any of Lessee’s said property shall be
assessed with Lessor’s real property, Lessee shall pay Lessor the taxes
attributable to Lessee’s property within 10 days after receipt of a written statement
setting forth the taxes applicable to Lessee’s property.

 

11.                       Utilities. Lessee shall
pay for all water, gas, heat, light, power, telephone, trash disposal and other
utilities and services supplied to the Premises, together with any taxes
thereon. Notwithstanding the provisions of Paragraph 4.2, if at any time in
Lessor’s sole judgment, Lessor determines that Lessee is using a
disproportionate amount of water, electricity or other commonly metered
utilities, or that Lessee is generating such a large volume of trash as to
require an increase in the size of the dumpster and/or an increase in the
number of times per month that the dumpster is emptied, then Lessor may
increase Lessee’s Base Rent by an amount equal to such increased costs.

 

12.                       Assignment
and Subletting.

 

12.1                            Lessor’s Consent Required.

 

(a)  Lessee shall not voluntarily
or by operation of law assign, transfer, mortgage or encumber (collectively,
“assign or assignment”) or sublet all or any part of Lessee’s interest in this
Lease or in the Premises without Lessor’s prior written consent, which shall
not be unreasonably withheld or delayed.

 

(b)  Lessee may assign the Lease to an affiliate entity
without Landlord approval,

 

(d) An assignment or
subletting without consent shall, at Lessor’s option, be a Default curable
after notice per Paragraph 13.1(c), or a noncurable Breach without the
necessity of any notice and grace period. If Lessor elects to treat such
unapproved assignment or subletting as a noncurable Breach, Lessor may either: (i) terminate
this Lease, or (ii) upon 30 days written notice, increase the monthly Base
Rent to 110% of the Base Rent then in effect. Further, in the event of such
Breach and rental adjustment, (i) the purchase price of any option to
purchase the Premises held by Lessee shall be subject to similar adjustment to
110% of the price previously in effect, and (ii) all fixed and non-fixed
rental adjustments scheduled during the remainder of the Lease term shall be
increased to 110% of the scheduled adjusted rent.

 

17

 

(e) Lessee’s remedy for
any breach of Paragraph 12.1 by  Lessor shall be limited to compensatory
damages and/or injunctive relief.

 

12.2                          Terms and Conditions Applicable to Assignment and Subletting.

 

(a)   Regardless of Lessor’s consent, no assignment or
subletting shall: (i) be effective without the express written assumption
by such assignee or sublessee of the Obligations of Lessee under this Lease, (ii) release
Lessee of any obligations hereunder, or (iii) alter the primary liability
of Lessee for the payment of Rent or for the performance of any other
obligations to be performed by Lessee.

 

(b)  Lessor may accept Rent or performance of Lessee’s
obligations from any person other than Lessee pending approval or disapproval
of an assignment. Neither a delay in the approval or disapproval of such
assignment nor the acceptance of Rent or performance shall constitute a waiver
or estoppel of Lesson’s right to exercise its remedies for Lessee’s Default or
Breach.

 

(c)   Lessor’s consent to any assignment or subletting
shall not constitute a consent to any subsequent assignment or subletting.

 

(d)  In the event of any Default or Breach by Lessee,
Lessor may proceed directly against Lessee, or anyone else responsible for the
performance of Lessee’s obligations under this Lease, including any assignee or
sublessee, without first exhausting Lessor’ s remedies against any other person
or entity responsible therefore to Lessor, or any security held by Lessor.

 

(e)   Each request for consent to an assignment or
subletting shall be in writing, accompanied by information relevant to Lessor’s
determination as to the financial and operational responsibility and
appropriateness of the proposed assignee or sublessee, including but not
limited to the intended use and/or required modification of the Premises, if
any, together with a fee of $500, as consideration for Lessor’s considering and
processing said request. Lessee agrees to provide Lessor with such other or
additional information and/or documentation as may be reasonably requested.

 

(f)   Any assignee of, or sublessee under, this Lease
shall, by reason of accepting such assignment or entering into such sublease,
be deemed to have assumed and agreed to conform and comply with each and every
term, covenant, condition and obligation herein to be observed or performed by
Lessee during the term of said assignment or sublease, other than such
obligations as are contrary to or inconsistent with provisions of an assignment
or sublease to which Lessor has specifically consented to in writings.

 

(g)  Lessor’s consent to any assignment or subletting shall
not transfer to the assignee or sublessee any Option granted to the original Lessee
by this Lease unless such transfer is specifically consented to by Lessor in
writing. (See Paragraph 39.2)

 

12.3 Additional Terms and Conditions Applicable to
Subletting. The following terms and conditions shall apply to any
subletting by Lessee of all or any part of the Premises and shall be deemed
included in all subleases under this Lease whether or not expressly
incorporated therein:

 

(a) Lessee hereby
assigns and transfers to Lessor all of Lessee’s interest in all Rent payable on
any sublease, and Lessor may collect such Rent and apply same toward Lessee’s
obligations under this Lease; provided, however, that until a Breach shall
occur in the performance of Lessee’s obligations, Lessee may collect said Rent.
Lessor shall not, by reason of the foregoing or any assignment of such
sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee
for any failure of Lessee to perform and comply with any of Lessee’s
obligations to such sublessee. Lessee hereby irrevocably authorizes and directs
any such sublessee, upon receipt of a written notice from Lessor stating that a
Breach exists in the performance of Lessee’s obligations under this Lease, to
pay to Lessor all Rent due and to become due under the sublease. Sublessee
shall rely upon any such notice from Lessor and shall pay all Rents to Lessor
without any obligation or right to inquire as to whether such Breach exists,
notwithstanding any claim from Lessee to the contrary.

 

(b) In the event of a
Breach by Lessee, Lessor may, at its option, require sublessee to attorn to
Lessor, in which event Lessor shall undertake the obligations of the sublessor
under such sublease from the time of the exercise of said option to the
expiration of such sublease; provided, however, Lessor shall not be liable for
any prepaid rents or security deposit paid by such sublessee to such sublessor
or for any prior Defaults or Breaches of such sublessor.

 

18

 

(c)   Any matter requiring the
consent of the sublessor under a sublease shall also require the consent of
Lessor.

 

(d)   No sublessee shall further
assign or sublet all or any pad of the Premises without Lessor’s prior written
consent.

 

(e)   Lessor shall deliver a copy
of any notice of Default or Breach by Lessee to the sublessee, who shall have the
right to cure the Default of Lessee within the grace period, if any, specified
in such notice. The sublessee shall have a right of reimbursement and offset
from and against Lessee for any such Defaults cured by the sublessee.

 

13.                       Default;
Breach, Remedies.

 

13.1                   Default; Breach. A “Default” is defined as a failure by the Lessee
to comply with or perform any of the terms, covenants, conditions or Rules and
Regulations under this Lease. A “Breach” is defined as the occurrence of one or
more of the following Defaults, and the failure of Lessee to cure such Default
within any applicable grace period:

 

(a) The abandonment of
the “Premises; or the vacating of the Premises without providing a commercially
reasonable level of security, or where the coverage of the property insurance
described in Paragraph 8.3  is
jeopardized as a result thereof, or without providing reasonable assurances to
minimize potential vandalism.

 

(b)   The failure of Lessee to make
any payment of Rent or any Security Deposit required to be made by Lessee
hereunder, whether to Lessor or to a third party, when due, to provide
reasonable evidence of insurance or surety bond, or to fulfill any obligation
under this Lease which endangers or threatens life or property, where such
failure continues for a period of 3 business days following written notice to
Lessee.

 

(c)   The failure by Lessee to
provide (i) reasonable written evidence of compliance with Applicable
Requirements, (ii) the service contracts described in Section 7.1(b),
(iii) the rescission of an unauthorized assignment or subletting, (iv) an
Estoppel Certificate, (v) a subordination required to be given pursuant to
Section 30.1, (vi) any document requested under Paragraph 41
(easements), or (vii) any other documentation or information which Lessor
may reasonably require of Lessee under the terms of this Lease, where any such
failure continues for a period of 10 days following written notice to Lessee.

 

(d)   A Default by Lessee as to
the terms, covenants, conditions or provisions of this Lease, or of the rules adopted
under Paragraph 2.9 hereof, other than those described in subparagraphs
13.1(a), (b) or (c), above, where such Default continues for a period of 30 days
after written notice; provided, however that if the nature of Lessee’s Default
is such that more than 30 days are reasonably required for its cure, then it shall
not be deemed to be a Breach if Lessee commences such cure within said 30 day
period and thereafter diligently prosecutes such cure to completion.

 

(e)   The occurrence of any of the
following events: (i) the making of any general arrangement or assignment
for the benefit of creditors; (ii) becoming a “debtor” as defined in 11
U.S.C. 101 or any successor statute thereto (unless, in the case of a petition
filed against Lessee, the same is dismissed within 60 days), (iii) the
appointment of a trustee or receiver to take possession of substantially all of
Lessee’s assets located at the Premises or of Lessee’s interest in this Lease,
where possession is not restored to Lessee within 30 days; or (iv) the
attachment, execution or other judicial seizure of substantially all of
Lessee’s assets located at the Premises or of Lessee’s interest in this Lease,
where such seizure is not discharged within 30 days; provided, however, in the
event that any provision of this subparagraph (e) is contrary to any applicable
law, such provision shall be of no force or effect, and not affect the validity
of the remaining provisions.

 

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

 

13.2             Remedies. If Lessee fails to perform
any of its affirmative duties or obligations, within 10 days after written
notice (or in case of an emergency, without notice), Lessor may, at its option,
perform such duty or obligation on Lessee’s behalf, including but not limited
to the obtaining of reasonably required bonds, insurance policies, or
governmental licenses, permits or approvals. The costs

 

19

 

and expenses of any such performance by Lessor shall
be due and payable by Lessee upon receipt of invoice therefor. If any check
given to Lessor by Lessee shall not be honored by the bank upon which it is
drawn, Lessor, at its option, may require all future payments to be made by
Lessee to be by cashier’s check. In the event of a Breach, Lessor may, with or
without further notice or demand, and without limiting Lessor in the exercise
of any right or remedy which Lessor may have by reason of such Breach:

 

(a)   Terminate Lessee’s right to
possession of the Premises by any lawful means, in which case this Lease shall
terminate and Lessee shall immediately surrender possession to Lessor. In such event
Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which
had been earned at the time of termination; (ii) the worth at the time of
award of the amount by which the unpaid rent which would have been earned after
termination until the time of award exceeds the amount of such rental loss that
the Lessee proves could have been reasonably avoided; (iii) the worth at
the time of award of the amount by which the unpaid rent for the balance of the
term after the time of award exceeds the amount of such rental loss that the
Lessee proves could be reasonably avoided; and (iv) any other amount
necessary to compensate Lessor for all the detriment proximately caused by the
Lessee’s failure to perform its obligations under this Lease or which in the ordinary
course of things would be likely to result therefrom, including but not limited
to the cost of recovering possession of the Premises, expenses of reletting,
including necessary renovation and alteration of the Premises, reasonable
attorneys’ fees, and that portion of any leasing commission paid by Lessor in
connection with this Lease applicable to the unexpired term of this Lease. The
worth at the time of award of the amount referred to in provision (iii) of
the immediately preceding sentence shall be computed by discounting such amount
at the discount rate of the Federal Reserve Bank of the District within which
the Premises are located at the time of award plus one percent. Efforts by
Lessor to mitigate damages caused by Lessee’s Breach of this Lease shall not
waive Lessor’s right to recover damages under Paragraph 12. If termination of
this Lease is obtained through the provisional remedy of unlawful detainer,
Lessor shall have the right to recover in such proceeding any unpaid Rent and
damages as are recoverable therein, or Lessor may reserve the right to recover
all or any part thereof in a separate suit. If a notice and grace period
required under Paragraph 13.1 was not previously given, a notice to pay rent or
quit, or to perform or quit given to Lessee under the unlawful detainer statute
shall also constitute the notice required by Paragraph 13.1. In such case, the
applicable grace period required by Paragraph 13.1 and the unlawful detainer
statute shall run concurrently, and the failure of Lessee to cure the Default
within the greater of the two such grace periods shall constitute both an
unlawful detainer and a Breach of this Lease entitling Lessor to the remedies
provided for in this Lease and/or by said statute.

 

(b)   Continue the Lease and
Lessee’s right to possession and recover the Rent as it becomes due, in which
event Lessee may sublet or assign, subject only to reasonable limitations. Acts
of maintenance, efforts to relet, and/or the appointment of a receiver to
protect the Lessor’s interests, shall not constitute a termination of the
Lessee’s right to possession.

 

(c)           Pursue any other remedy now or hereafter
available under the laws or judicial decisions of the state wherein the
Premises are located. The expiration or termination of this Lease and/or the termination
of Lessee’s right to possession shall not relieve Lessee from liability under
any indemnity provisions of this Lease as to makers occurring or accruing
during the term hereof or by reason of Lessee’s occupancy of the Premises.

 

13.3            [Reserved].

 

13.4            Late
Charges.  Lessee hereby
acknowledges that late payment by Lessee of Rent will cause Lessor to incur
costs not contemplated by this Lease, the exact amount of which will be
extremely difficult to ascertain. Such costs include, but are not limited to,
processing and accounting charges, and late charges which may be imposed upon
Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor
within 5 days after such amount shall be due, then, without any requirement for
notice to Lessee, Lessee shall pay to Lessor a one-time late charge equal to
$100,. The parties hereby agree that such late charge represents a fair and
reasonable estimate of the costs Lessor will incur by reason of such late
payment. Acceptance of such late charge by Lessor shall in no event

 

20

 

constitute a waiver of Lessee’s Default or Breach with respect to such
overdue amount, nor prevent the exercise of any of the other rights and
remedies granted hereunder. In the event that a late charge is payable
hereunder, whether or not collected, for 3 consecutive installments of Base
Rent, then notwithstanding any provision of this Lease to the contrary, Base
Rent shall, at Lessor’s option, become due and payable quarterly in advance.

 

13.5             Interest. Any monetary
payment due Lessor hereunder, other than late charges, not received by Lessor,
within 30 days following the date on which it was due shall bear interest from
the 31st day after it was due. The interest (“Interest”) charged shall be equal
to the prime rate reported in the Wall Street Journal as published closest
prior to the date when due plus 2%, but shall not exceed the maximum rate
allowed by law. Interest is payable in addition to the potential late charge
provided for in Paragraph 13.4.

 

13.6             Breach by
Lessor.

 

(a)   Notice of
Breach. Lessor shall not be deemed in breach of this Lease
unless Lessor fails within a reasonable time to perform an obligation required
to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall
in no event be less than 30 days after receipt by Lessor, and any Lender whose
name and address shall have been furnished Lessee in writing for such purpose,
of written notice specifying wherein such obligation of Lessor has not been
performed; provided, however, that if the nature of Lessor’s obligation is such
that more than 30 days are reasonably required for its performance then Lessor
shall not be in breach if performance is commenced within such 30 day period
and thereafter diligently pursued to completion.

 

(b)   Performance
by Lessee on Behalf of Lessor. In the event that neither
Lessor nor Lender cures said breach within 30 days after receipt of said
notice, or if having commenced said cure they do not diligently pursue it to
completion, then Lessee may elect to cure said breach at Lessee’s expense and
offset from Rent an amount equal to the greater of one month’s Base Rent or the
Security Deposit, and to pay an excess of such expense under protest, reserving
Lessee’s right to reimbursement from Lessor. Lessee shall document the cost of
said cure and supply said documentation to Lessor. d

 

14.   Condemnation. If the Premises or any portion thereof are taken
under the power of eminent domain or sold under the threat of the exercise of
said power (collectively “Condemnation”), this Lease shall terminate as to the
part taken as of the date the condemning authority takes title or possession,
whichever first occurs. If more than 10% of the floor area of the Unit, or more
than 25% of Lessee’s Reserved Parking Spaces, is taken by Condemnation, Lessee
may, at Lessee’s option, to be exercised in writing within 10 days after Lessor
shall have given Lessee written notice of such taking (or in the absence of
such notice, within 10 days after the condemning authority shall have taken
possession) terminate this Lease as of the date the condemning authority takes
such possession. If Lessee does not terminate this Lease in accordance with the
foregoing, this Lease shall remain in full force and effect as to the portion
of the Premises remaining, except that the Base Rent shall be reduced in
proportion to the reduction in utility of the Premises caused by such
Condemnation. Condemnation awards and/or payments shall be the property of Lessor,
whether such award shall be made as compensation for diminution in value of the
leasehold, the value of the part taken, or for severance damages; provided,
however, that Lessee shall be entitled to any compensation for Lessee’s
relocation expenses, loss of business goodwill and/or Trade Fixtures, without
regard to whether or not this Lease is terminated pursuant to the provisions of
this Paragraph. All Alterations and Utility Installations made to the Premises
by Lessee, for purposes of Condemnation only, shall be considered the property
of the Lessee and Lessee shall be entitled to any and all compensation which is
payable therefor. In the event that this Lease is not terminated by reason of
the Condemnation, Lessor shall repair any damage to the Premises caused by such
Condemnation.

 

15.                 Brokerage Fees.

 

15.1            Additional Commission. In addition to
the payments owed pursuant to Paragraph 1.10 above, and unless Lessor and the
Brokers otherwise agree in writing, Lessor agrees that: (a) if

 

21

 

 

Lessee exercises any Option, (b) if Lessee acquires from Lessor
any rights to the Premises or other premises owned by Lessor and located within
the Project, (c) if Lessee remains in possession of the Premises, with the
consent of Lessor, after the expiration of this Lease, or (d) if Base Rent
is increased, whether by agreement or operation of an escalation clause herein,
then, Lessor shall pay Brokers a fee in accordance with the schedule of the
Brokers in effect at the time of the execution of this Lease.

 

15.2                           Assumption of Obligations. Any buyer or transferee of
Lessor’s interest in this Lease shall be deemed to have assumed Lessor’s
obligation hereunder. Brokers shall be third party beneficiaries of the
provisions of Paragraphs 1.10, 15, 22 and 31. If Lessor fails to pay to Brokers
any amounts due as and for brokerage fees pertaining to this Lease when due,
then such amounts shall accrue interest. In addition, if Lessor fails to pay
any amounts to Lessee’s Broker when due, Lessee’s Broker may send written
notice to Lessor and Lessee of such failure and if Lessor fails to pay such
amounts within 10 days after said notice, Lessee shall pay said monies to its
Broker and offset such amounts against Rent. In addition, Lessee’s Broker shall
be deemed to be a third party beneficiary of any commission agreement entered
into by and/or between Lessor and Lessor’s Broker for the limited purpose of
collecting any brokerage fee owed.

 

15.3                           Representations and Indemnities of Broker Relationships. Lessee and
Lessor each represent and warrant to the other that it has had no dealings with
any person, firm, broker or finder (other than the Brokers, if any) in
connection with this Lease, and that no one other than said named Brokers is
entitled to any commission or finders fee in connection herewith. Lessee and
Lessor do each hereby agree to indemnify, protect, defend and hold the other
harmless from and against liability for compensation or charges which may be
claimed by any such unnamed broker, finder or other similar party by reason of
any dealings or actions of the indemnifying Party, including any costs,
expenses, attorneys’ fees reasonably incurred with respect thereto.

 

16.                                 Estoppel Certificates.

 

(a)  Each Party (as “Responding
Party”)  shall
within 10 days after written notice from the other Party (the “Requesting
Party”) execute, acknowledge and deliver to the Requesting Party a statement in
writing in form similar to the then most current “Estoppel Certificate” form
published by the American Industrial Real Estate Association, plus such
additional information, confirmation and/or statements as may be reasonably
requested by the Requesting Party.

 

(b)  If the Responding Party shall
fail to execute or deliver the Estoppel Certificate within such 10 day period,
the Requesting Party may execute an Estoppel Certificate stating that:
(i) the Lease is in full force and effect without modification except as
may be represented by the Requesting Party, (ii) there are no uncured
defaults in the Requesting Party’s performance, and (iii) if Lessor is the
Requesting Party, not more than one month’s rent has been paid in advance.
Prospective purchasers and encumbrances may rely upon the Requesting Party’s
Estoppel Certificate, and the Responding Party shall be estopped from denying
the truth of the facts contained in said Certificate.

 

(c)  If Lessor desires to finance,
refinance, or sell the Premises, or any part thereof, Lessee shall deliver to
any potential lender or purchaser designated by Lessor such financial
statements as may be reasonably required by such lender or purchaser, including
but not limited to Lessee’s financial statements for the past 3 years. All such
financial statements shall be received by Lessor and such lender or purchaser
in confidence and shall be used only for the purposes herein set forth.

 

17.                                 Definition of Lessor. The term “Lessor” as used
herein shall mean the owner or owners at the time in question of the fee title
to the Premises, or, if this is a sublease, of the Lessee’s interest in the
prior lease. In the event of a transfer of Lessor’s title or interest in the
Premises or this Lease, Lessor shall deliver to the transferee or assignee (in
cash or by credit) any unused Security Deposit held by Lessor. Except as
provided in Paragraph 15, upon such transfer or assignment and delivery of the
Security Deposit, as aforesaid, the prior Lessor shall be relieved of all
liability with respect to the obligations and/or covenants under this Lease
thereafter to be performed by the Lessor. Subject to the foregoing, the
obligations and/or covenants in this Lease to be performed by the Lessor shall
be binding

 

22

 

only
upon the Lessor as hereinabove defined and the Lessor as hereinabove defined
shall be fully liable for all of the obligations of the Lessor hereunder.
Notwithstanding the above, and subject to the provisions of Paragraph 20 below,
the original Lessor under this Lease, and all subsequent holders of the
Lessor’s interest in this Lease shall remain liable and responsible with regard
to the potential duties and liabilities of Lessor pertaining to Hazardous
Substances as outlined in Paragraph 6.2 above.

 

18.                             Severability.
The invalidity of any provision of this Lease, as determined by a court
of competent jurisdiction, shall in no way affect the validity of any other
provision hereof.

 

19.                               Days.  Unless otherwise specifically indicated to the
contrary, the word “days” as used in this Lease shall mean and refer to
calendar days.

 

20.                               Limitation
on Liability. Subject to the provisions of Paragraph 17 above,
the obligations of Lessor under this Lease shall not constitute personal
obligations of the individual partners of Lessor or its or their individual
partners, directors, officers or shareholders, and Lessee shall look to the
Lessor, for the satisfaction of any liability of Lessor with respect to this
Lease, and shall not seek recourse against the individual partners of Lessor,
or its or their individual partners, directors, officers or shareholders, or
any of their personal assets for such satisfaction.

 

21.                               Time of Essence. Time is of the
essence with respect to the performance of all obligations to be performed or
observed by the Parties under this Lease.

 

22.                               No Prior or
Other Agreements; Broker Disclaimer. This Lease contains all
agreements between the Parties with respect to any matter mentioned herein, and
no other prior or contemporaneous agreement or understanding shall be
effective. Lessor and Lessee each represents and warrants to the Brokers that
it has made, and is relying solely upon, its own investigation as to the
nature, quality, character and financial responsibility of the other Party to
this Lease and as to the use, nature, quality and character of the Premises
(except as to the specific warranties made by the Lessor herein). Brokers have
no responsibility with respect thereto or with respect to any default or breach
hereof by either Party. The liability (including court costs and attorneys’
fees), of any Broker with respect to negotiation, execution, delivery or
performance by either Lessor or Lessee under this Lease or any amendment or
modification hereto shall be limited to an amount up to the fee received by
such Broker pursuant to this Lease; provided, however, that the foregoing
limitation on each Broker’s liability shall not be applicable to any gross
negligence or willful misconduct of such Broker.

 

23.                               Notices.

 

23.1                           Notice
Requirements. All notices required or permitted by this Lease or
applicable law shall be in writing and may be delivered in person (by hand or
by courier) or may be sent by regular, certified or registered mail or U.S.
Postal Service Express Mail, with postage prepaid, or by facsimile
transmission, and shall be deemed sufficiently given if served in a manner
specified in this Paragraph 23. The addresses noted adjacent to a Party’s
signature on this Lease shall be that Party’s address for delivery or mailing
of notices. Either Party may by written notice to the other specify a different
address for notice, except that upon Lessee’s taking possession of the
Premises, the Premises shall constitute Lessee’s address for notice. A copy of
all notices to Lessor shall be concurrently transmitted to such party or
parties at such addresses as Lessor may from time to time hereafter designate
in writing.

 

23.2                           Date of
Notice. Any notice sent by registered or certified mail,
return receipt requested, shall be deemed given on the date of delivery shown
on the receipt card, or if no delivery date is shown, the postmark thereon. If
sent by regular mail the notice shall be deemed given 48 hours after the same
is addressed as required herein and mailed with postage prepaid. Notices
delivered by United States Express Mail or overnight courier that guarantee
next day delivery shall be deemed given

 

23

 

24
hours after delivery of the same to the Postal Service or courier. Notices
transmitted by facsimile transmission or similar means shall be deemed
delivered upon telephone confirmation of receipt (confirmation report from fax
machine is sufficient), provided a copy is also delivered via delivery or mail.
If notice is received on a Saturday, Sunday or legal holiday, it shall be
deemed received on the next business day.

 

24.                                 Waivers. No waiver by
Lessor of the Default or Breach of any term, covenant or condition hereof by
Lessee, shall be deemed a waiver of any other term, covenant or condition
hereof, or of any subsequent Default or Breach by Lessee of the same or of any
other term. covenant or condition hereof. Lessor’s consent to, or approval of,
any act shall not be deemed to render unnecessary the obtaining of Lessor’s
consent to, or approval of, any subsequent or similar act by Lessee, or be
construed as the basis of an estoppel to enforce the provision or provisions of
this Lease requiring such consent. The acceptance of Rent by Lessor shall not
be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be
accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any
qualifying statements or conditions made by Lessee in connection therewith,
which such statements and/or conditions shall be of no force or effect
whatsoever unless specifically agreed to in writing by Lessor at or before the
time of deposit of such payment.

 

25.                                 Disclosures Regarding The Nature of a Real Estate Agency Relationship.

 

(a) When entering into a discussion with a real estate agent
regarding a real estate transaction, a Lessor or Lessee should from the outset
understand what type of agency relationship or representation it has  with the agent or agents in
the transaction. Lessor and Lessee acknowledge being advised by the Brokers in
this transaction, as follows:

 

(i) Lessor’s Agent. A Lessor’s agent under a listing agreement
with the Lessor acts as the agent for the Lessor only. A Lessor’s agent or
subagent has the following affirmative obligations: To the Lessor: A fiduciary
duty of utmost care, integrity, honesty, and loyalty in dealings with the
Lessor. To the Lessee and the Lessor: (a) Diligent exercise of reasonable
skills and care in performance of the agent’s duties. (b) A duty of honest
and fair dealing and good faith. (c) A duty to disclose all facts known to
the agent materially affecting the value or desirability of the property that are
not known to, or within the diligent attention and observation of, the Parties.
An agent is not obligated to reveal to either Party any confidential
information obtained from the other Party which does not involve the
affirmative duties set forth above.

 

(ii) Lessee’s Agent. An agent can agree to act as agent for the
Lessee only. In these situations, the agent is not the Lessor’s agent, even if
by agreement the agent may receive compensation for services rendered, either
in full or in part from the Lessor. An agent acting only for a Lessee has the
following affirmative obligations. To the Lessee: A fiduciary duty of utmost
care, integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee
and the Lessor: (a) Diligent exercise of reasonable skills and care in
performance of the agent’s duties. (b) A duty of honest and fair dealing
and good faith. (c) A duty to disclose all facts known to the agent
materially affecting the value or desirability of the property that are not
known to, or within the diligent attention and observation of, the Parties An
agent is not obligated to reveal to either Party any confidential information
obtained from the other Party which does not involve the affirmative duties set
forth above.

 

(iii) Agent Representing Both Lessor and Lessee. A real estate
agent, either acting directly or through one or more associate licenses, can
legally be the agent of both the Lessor and the Lessee in a transaction, but
only with the knowledge and consent of both the Lessor and the Lessee. In a
dual agency situation, the agent has the following affirmative obligations to
both the Lessor and the Lessee: (a) A fiduciary duty of utmost care,
integrity, honesty and loyalty in the dealings with either Lessor or the Lessee.
(b) Other duties to the Lessor and the Lessee as stated above in
subparagraphs (i) or (ii). In representing both Lessor and Lessee, the
agent may not without the express permission of the respective Party, disclose
to the other Party that the Lessor will accept rent in an amount less than that
indicated in the listing or that the Lessee is willing to pay a higher rent
than that offered. The above

 

24

 

duties
of the agent in a real estate transaction do not relieve a Lessor or Lessee
from the responsibility to protect their own interests. Lessor and Lessee
should carefully read all agreements to assure that they adequately express
their understanding of the transaction. A real estate agent is a person
qualified to advise about real estate. If legal or tax advice is desired,
consult a competent professional.

 

(b) Brokers have no responsibility with respect to any default or
breach hereof by either Party. The liability (including court costs and
attorneys’ fees), of any Broker with respect to any breach of duty, error or
omission relating to this Lease shall not exceed the fee received by such
Broker pursuant to this Lease; provided, however, that the foregoing limitation
on each Broker’s liability shall not be applicable to any gross negligence or
willful misconduct of such Broker.

 

(c) Buyer and Seller agree to identify to Brokers as
“Confidential” any communication or information given Brokers that is
considered by such Party to be confidential.

 

26.                                 No Right
To Holdover. Lessee has no right to
retain possession of the Premises or any part thereof beyond the expiration or
termination of this Lease. In the event that Lessee holds over, then the Base
Rent shall be increased to 150% of the Base Rent applicable immediately
preceding the expiration or termination. Nothing contained herein shall be
construed as consent by Lessor to any holding over by Lessee.

 

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

 

28.                                 Covenants and Conditions; Construction of Agreement. All provisions
of this Lease to be observed or performed by Lessee are both covenants and
conditions. In construing this Lease, all headings and titles are for the
convenience of the Parties only and shall not be considered a part of this
Lease. Whenever required by the context, the singular shall include the plural
and vice versa. This Lease shall not be construed as ff prepared by one of the
Parties, but rather according to its fair meaning as a whole, as if both
Parties had prepared it.

 

29.                                 Binding Effect; Choice of Law. This Lease shall be binding
upon the parties, their personal representatives, successors and assigns and be
governed by the laws of the State in which the Premises are located. Any
litigation between the Parties hereto concerning this Lease shall be initiated
in the county in which the Premises are located.

 

30.                                 Subordination; Attornment, Non-Disturbance.

 

30.1                           Subordination.
This Lease and any Option granted hereby shall be subject and
subordinate to any ground lease, mortgage, deed of trust, or other
hypothecation or security device (collectively, “Security device”), now or
hereafter placed upon the Premises, to any and all advances made on the
security thereof, and to all renewals, modifications, and extensions thereof.
Lessee agrees that the holders of any such Security Devices (in this Lease
together referred to as “Lender”) shall have no liability or obligation to
perform any of the obligations of Lessor under this Lease. Any Lender may elect
to have this Lease and/or any Option granted hereby superior to the lien of its
Security Device by giving written notice thereof to Lessee, whereupon this
Lease and such Options shall be deemed prior to such Security Device,
notwithstanding the relative dates of the documentation or recordation thereof.

 

30.2                           Attornment.
In the event that Lessor transfers title to the Premises, or the
Premises are acquired by another upon the foreclosure or termination of a
Security Device to which this Lease is subordinated (i) Lessee shall,
subject to the non-disturbance provisions of Paragraph 30.3, attorn to such new
owner, and upon request, enter into a new lease, containing all of the terms
and provisions of this Lease, with such new owner for the remainder of the term
hereof, or, at the election of such new owner, this Lease shall automatically
become a new Lease between Lessee and such new owner, upon all of the terms and
conditions hereof, for the remainder of the term hereof, and (ii) Lessor
shall thereafter be relieved of any further obligations hereunder and such new
owner shall assume all of Lessor’s

 

25

 

obligations
hereunder, except that such new owner shall not: (a) be liable for any act
or omission of any prior lessor or with respect to events occurring prior to acquisition
of ownership; (b) be subject to any offsets or defenses which Lessee might
have against any prior lessor, (c) be bound by prepayment of more than one
month’s rent, or (d) be liable for the return of any security deposit paid
to any prior lessor.

 

30.3                           DELETED

 

30.4                           Self-Executing.
The agreements contained in this Paragraph 30 shall be effective
without the execution of any further documents; provided, however, that, upon
written request from Lessor or a Lender in connection with a sale, financing or
refinancing of the Premises, Lessee and Lessor shall execute such further
writings as may be reasonably required to separately document any subordination,
attornment and/or Non-Disturbance Agreement provided for herein.

 

31.                                 Attorneys’ Fees. If any Party or Broker brings an action or
proceeding involving the Premises whether founded in tort, contract or equity,
or to declare rights hereunder, the Prevailing Party (as hereinafter defined)
in any such proceeding, action, or appeal thereon, shall be entitled to
reasonable attorneys’ fees. Such fees may be awarded in the same suit or recovered
in a separate suit, whether or not such action or proceeding is pursued to
decision or judgment. The term, “Prevailing Party” shall include, without
limitation, a Party or Broker who substantially obtains or defeats the relief
sought, as the case may be, whether by compromise, settlement, judgment, or the
abandonment by the other Party or Broker of its claim or defense. The
attorneys’ fees award shall not be computed in accordance with any court fee
schedule, but shall be such as to fully reimburse all attorneys’ fees
reasonably incurred. In addition, Lessor shall be entitled to attorneys” tees,
costs and expenses incurred in the preparation and service of notices of
Default and consultations in connection therewith, whether or not a legal
action is subsequently commenced in connection with such Default or resulting
Breach (S200 is a reasonable minimum per occurrence for such services and
consultation).

 

32.                                 Lessor’s Access; Showing Premises; Repairs. Lessor and
Lessor’s agents shall have the right to enter the Premises at any time, in the
case of an emergency, and otherwise at reasonable times upon reasonable prior
written notice for the purpose of showing the same to prospective purchasers,
lenders, or tenants, and making such alterations, repairs, improvements or
additions to the Premises as Lessor may deem necessary. Lessee shall have the
right to have its employee accompany Lessor and Lessor’s invitees during such
showings. It is further understood and agreed that, because Lessee is a
financial institution, Lessor shall not have the right to examine or inspect Lessee’s
books, records and other information located at the premises, except to the
extent permitted by the lessee’s primary regulator. All such activities shall
be without abatement of rent or liability to Lessee. Lessor may at any time
place on the Premises any ordinary “For Sale” signs and Lessor may during the
last 6 months of the term hereof place on the Premises any ordinary “For Lease”
signs. Lessee may at any time place on the Premises any ordinary “For Sublease”
sign.

 

33.                                 Auctions. Lessee shall not conduct, nor permit to be
conducted, any auction upon the Premises without Lessor’s prior written
consent. Lessor shall not be obligated to exercise any standard of
reasonableness in determining whether to permit an auction.

 

34.                                 Signs. Lessee may install, at Lessee’s expenses
but at no additional charge to Lessee hereunder, the maximum building,
storefront, pylon and monument signage permitted by applicable codes. Lessor
hereby approves Lessee’s proposed signage as depicted in the diagrams attached
hereto as Exhibit     , and consents to such
advertising material as conforms to Lessee’s area-wide marketing practice.
Lessor shall at its sole cost and expense prepare the exterior of the Premises
in preparation for Lessee’s signage (including without limitation patching and
repairing of holes left by prior Lessees’ signage). In addition, Lessee, at its
cost, may install or place signs, awnings, or pylon signs in or about the
Premises provided that Lessee obtains Lessor’s consent for all such exterior
signs, which consent shall not be unreasonably withheld, conditioned or
delayed. Lessee shall not be required to obtain

 

26

 

Lessor’s consent for any promotional or advertising displays. During
the first twelve (12) months of the Term, Lessee may also display promotional
banners and awnings in and around the Premises and adjacent portions of the
parking lot for its grand opening. All signs must comply with all Applicable
Requirements.

 

35.                                 Termination; Merger. Unless specifically stated
otherwise in writing by Lessor, the voluntary or other surrender of this Lease
by Lessee, the mutual termination or cancellation hereof, or a termination
hereof by Lessor for Breach by Lessee, shall automatically terminate any
sublease or lesser estate in the Premises; provided, however, that Lessor may
elect to continue any one or all existing subtenancies. Lessor’s failure within
10 days following any such event to elect to the contrary by written notice to
the holder of any such lesser interest, shall constitute Lessor’s election to
have such event constitute the termination of such interest.

 

36.                                 Consents. Except as otherwise provided herein, wherever in
this Lease the consent of a Party is required to an act by or for the other
Party, such consent shall not be unreasonably withheld or delayed. Lessor’s
actual reasonable costs and expenses (including but not limited to architects’,
attorneys’, engineers’ and other consultants’ fees) incurred in the
consideration of, or response to, a request by Lessee for any Lessor consent,
including but not limited to consents to an assignment, a subletting or the
presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt
of an invoice and supporting documentation therefor. Lessor’s consent to any
act, assignment or subletting shall not constitute an acknowledgment that no
Default or Breach by Lessee of this Lease exists, nor shall such consent be
deemed a waiver of any then existing Default or Breach, except as may be
otherwise specifically stated in writing by Lessor at the time of such consent.
The failure to specify herein any particular condition to Lessor is consent
shall not preclude the imposition by Lessor at the time of consent of such
further or other conditions as are then reasonable with reference to the
particular matter for which consent is being given. In the event that either
Party disagrees with any determination made by the other hereunder and
reasonably requests the reasons for such determination, the determining party
shall furnish its reasons in writing and in reasonable detail within 10
business days following such request.

 

37.                                 Lessee’s Options.

 

(a) Lessee shall
have the right, at its sole option, at anytime after the eighty-fourth (84th) month of the Lease Term,
to terminate the Lease upon not less than nine (9) months’ advance written
notice to Lessor with a penalty equal to five (5) months’ of then Base
Rent.

 

(b) Upon expiration of the initial Term,
Lessee shall have two (2) options to extend the Lease for an additional
five (5) years at 95% of fair market rental for comparable retail projects
in the area. Lessee must give Lessor at least six (6) months’ prior
written notice of its exercise of the option. The fair market rental shall be
determined by taking the average of the Lessor’s and the Lessee’s real estate brokers and must be
agreed upon in writing by Lessor and Lessee.

 

38.                                 Quiet Possession. Subject to payment by Lessee of the Rent and
performance of all of the covenants, conditions and provisions on Lessee’s part
to be observed and performed under this Lease, Lessee shall have quiet
possession and quiet enjoyment of the Premises during the term hereof. Lessee
shall have access to the Premises seven (7) days a week, twenty-four (24)
hours a day.

 

39.                                 Options. If Lessee is granted an option, as defined below,
then the following provisions shall apply.

 

39.1                           Definition.
“Option” shall mean: (a) the right to extend the term of or renew
this Lease or to extend or renew any lease that Lessee has on other property of
Lessor; (b) the right of first

 

27

 

refusal or first offer to lease either the Premises or other property
of Lessor; (c) the right to purchase or the right of first refusal to purchase
the Premises or other property of Lessor.

 

39.2                           Options Personal To
Original Lessee. Any
Option granted to Lessee in this Lease is personal to the original Lessee, and
cannot be assigned or exercised by anyone other than said original Lessee and
only while the original Lessee is in full possession of the Premises and, if
requested by Lessor, with Lessee certifying that Lessee has no intention of
thereafter assigning or subletting.

 

39.3                           Multiple Options. In the event that Lessee has any multiple
Options to extend or renew this Lease, a later Option cannot be exercised
unless the prior Options have been validly exercised.

 

39.4                           Effect of Default on
Options.

 

(a)  Lessee shall have no right to exercise an Option:
(i) during the period commencing with the giving of any notice of Default
and continuing until said Default is cured, (ii) during the period of time any
Rent is unpaid (without regard to whether notice thereof is given Lessee),
(iii) during the time Lessee is in Breach of this Lease, or (iv) in
the event that Lessee has been given 3 or more notices of separate Default,
whether or not the Defaults are cured, during the 12 month period immediately
preceding the exercise of the Option.

 

(b)  The period of time within which an Option may be
exercised shall not be extended or enlarged by reason of Lessee’s inability to
exercise an Option because of the provisions of Paragraph 39.4 (a).

 

(c)  An Option shall terminate and be of no further force or
effect, notwithstanding Lessee’s due and timely exercise of the Option, if, after
such exercise and prior to the commencement of the extended term,
(i) Lessee fails to pay Rent for a period of 30 days after such Rent becomes
due (without any necessity of Lessor to give notice thereof), (ii) Lessor
gives to Lessee 3 or more notices of separate Default during any 12 month
period, whether or not the Defaults are cured, or (iii) if Lessee commits
a Breach of this Lease.

 

40.                                 Security Measures. Lessee hereby acknowledges that the Rent
payable to Lessor hereunder does not include the cost of guard service or other
security measures, and that Lessor shall have no obligation whatsoever to
provide same. Lessee assumes all responsibility for the protection of the
Premises, Lessee, its agents and invitees and their property from the acts of
third parties.

 

41.                                 Reservations. Lessor reserves the right: (i) to
grant, without the consent or joinder of Lessee, such easements, rights and
dedications that Lessor deems necessary, (ii) to cause the recordation of
parcel maps and restrictions, and (iii) to create and/or install new utility
raceways, so long as such easements, rights, dedications, maps, restrictions,
and utility raceways do not unreasonably interfere with the use of the Premises
by Lessee. Lessee agrees to sign any documents reasonably requested by Lessor
to effectuate such rights.

 

42.                                 Performance Under
Protest. If at
any time a dispute shall arise as to any amount or sum of money to be paid by
one Party to the other under the provisions hereof, the Party against whom the
obligation to pay the money is asserted shall have the right to make payment “under
protest” and such payment shall not be regarded as a voluntary payment and
there shall survive the right on the part of said Party to institute suit for
recovery of such sum. If it shall be adjudged that there was no legal
obligation on the part of said Party to pay such sum or any part thereof, said
Party shall be entitled to recover such sum or so much thereof as it was not
legally required to pay.

 

43.                                 Authority;
Representations. If
either Party hereto is a corporation, trust, Limited Liability Company,
partnership, or similar entity, each individual executing this Lease on behalf
of such entity represents and warrants that he or she is duly authorized to
execute and deliver this Lease on its behalf. Each party shall, within 30 days
after request, deliver to the other party satisfactory evidence of such
authority. Lessor represents and warrants to Lessee that (i) fee title to
the Project and Premises is vested

 

28

 

in
Lessor, 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 Lessee to use the Premises for the Agreed
Use, Lessor is not violating and will not be violating any restrictive covenant
or agreement contained in any other lease or contract affecting Lessor or the
Premises; (iii) except as disclosed to Lessee in writing prior to Lessee’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 agencies and (iv) Lessor has the authority to enter into this
Lease and its execution and delivery by Lessor has been duly authorized.

 

44.                                 Conflict. Any conflict
between the printed provisions of this Lease and the typewritten or handwritten
provisions shall be controlled by the typewritten or handwritten provisions.

 

45.                                 Offer. Preparation of
this Lease by either party or their agent and submission of same to the other
Party shall not be deemed an offer to lease to the other Party. This Lease is
not intended to be binding until executed and delivered by all Parties hereto.

 

46.                                 Amendments. This Lease may
be modified only in writing, signed by the Parties in interest at the time of
the modification. As long as they do not materially change Lessee’s obligations
hereunder, Lessee agrees to make such reasonable non-monetary modifications to
this Lease as may be reasonably required by a Lender in connection with the
obtaining of normal financing or refinancing of the Premises.

 

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

 

48.                                 Waiver of
Jury Trial. The Parties-hereby waive their respective rights to
trial by jury in any action or proceeding involving the Property or arising out
of this Agreement.

 

49.                                 Mediation
and Arbitration of Disputes. An Addendum requiring the
Mediation and/or the Arbitration of all disputes between the Parties and/or Brokers
arising out of this Lease [ ] is [x] is not attached to his Lease.

 

LESSOR
AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PRQVISION
CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND
VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS
LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE
THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES.

 

ATTENTION:
NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL
ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT,
OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE
PARTIES ARE URGED TO:

 

1. SEEK ADVICE OF COUNSEL AS TO THE
LEGAL AND TAX CONSEQUENCES OF THIS LEASE.

 

2. RETAIN APPROPRIATE CONSULTANTS TO
REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD
INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES,
THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF
AND

 

29

 

OPERATING SYSTEMS, COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT
AND THE SUITABILITY OF THE PREMISES FOR LESSEE’S INTENDED USE.

 

WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA,
CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPANY WITH THE
LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED.

 

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

 

 

	
  Executed
  at:

  	
   

  
	
   

  	
   

  
	
  On: 

  	
  8-12-09

  	
   

  
	
   

  	
   

  	
   

  
	
  By
  Lessor

  	
   

  
	
  New
  Hampshire Apartment, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Joseph B. Ghim

  	
   

  
	
   

  	
   

  	
   

  
	
  Name Printed:

  	
  Joseph
  B. Ghim

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Executed
  at:

  	
   

  
	
   

  	
   

  
	
  On: 

  	
  July 30, 2009

  	
   

  
	
   

  	
   

  
	
  By Lessee:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ David Kim

  	
   

  
	
   

  	
   

  	
   

  
	
  Name Printed:

  	
  David Kim

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: 

  	
  Sr. Vice President

  	
   

  

 

30Exhibit
10.27

 

LEASE AGREEMENT
dated August, 12 2009

 

KAM HING
REALTY-NYC, LLC, Landlord

 

WILSHIRE
STATE BANK, Tenant

 

1

 

TABLE OF CONTENTS

 

	
  Caption

  	
   

  	
  Article

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Acknowledgments

  	
   

  	
  —

  	
   

  	
  38

  
	
  Acts
  of Invitees, et al.

  	
   

  	
  5.04

  	
   

  	
  21

  
	
  Additional
  Areas/License

  	
   

  	
  1.03

  	
   

  	
  4

  
	
  additional
  rent

  	
   

  	
  3.01

  	
   

  	
  12

  
	
  Alterations

  	
   

  	
  4.03

  	
   

  	
  17

  
	
  As
  Is

  	
   

  	
  1.02

  	
   

  	
  4

  
	
  Assignment
  and Subletting

  	
   

  	
  7.01

  	
   

  	
  24

  
	
  Attorneys’
  Fees and Costs

  	
   

  	
  11.14

  	
   

  	
  33

  
	
  Basement

  	
   

  	
  1.06

  	
   

  	
  5

  
	
  Broker

  	
   

  	
  11.05

  	
   

  	
  31

  
	
  Captions

  	
   

  	
  11.08

  	
   

  	
  32

  
	
  Changes
  and Additions to Buildings

  	
   

  	
  4.02

  	
   

  	
  16

  
	
  Compliance
  with Laws

  	
   

  	
  3.05

  	
   

  	
  14

  
	
  Covenants

  	
   

  	
  11.06

  	
   

  	
  31

  
	
  Default

  	
   

  	
  6.01

  	
   

  	
  21

  
	
  Definitions

  	
   

  	
  11.09

  	
   

  	
  32

  
	
  Demised
  Premises

  	
   

  	
  1.01

  	
   

  	
  4

  
	
  Due
  Authorization

  	
   

  	
  11.10

  	
   

  	
  33

  
	
  Eminent
  Domain

  	
   

  	
  9.02

  	
   

  	
  29

  
	
  Entire
  Agreement

  	
   

  	
  11.13

  	
   

  	
  33

  
	
  Estoppels

  	
   

  	
  8.02

  	
   

  	
  27

  
	
  Force
  Majeure

  	
   

  	
  2.02

  	
   

  	
  6

  
	
  Hazardous
  Materials

  	
   

  	
  12.01

  	
   

  	
  34

  
	
  Hold
  Harmless

  	
   

  	
  5.03

  	
   

  	
  20

  
	
  Holdover

  	
   

  	
  11.04

  	
   

  	
  30

  
	
  Invalidity
  of Particular Provisions

  	
   

  	
  11.12

  	
   

  	
  33

  
	
  Landlord’s
  Covenant of Quiet Enjoyment

  	
   

  	
  11.01

  	
   

  	
  30

  
	
  Landlord’s
  Liability

  	
   

  	
  4.05

  	
   

  	
  19

  
	
  Landlord’s
  Obligations

  	
   

  	
  4.01

  	
   

  	
  16

  
	
  Landlord’s
  Right to Enter

  	
   

  	
  4.04

  	
   

  	
  18

  
	
  Late
  Charges

  	
   

  	
  2.06

  	
   

  	
  7

  
	
  Lease
  Term

  	
   

  	
  2.01

  	
   

  	
  5

  
	
  Liability
  Insurance

  	
   

  	
  5.01

  	
   

  	
  20

  
	
  Mechanic’s
  Liens

  	
   

  	
  4.06

  	
   

  	
  19

  
	
  Mutual
  Waiver

  	
   

  	
  11.15

  	
   

  	
  33

  
	
  No
  Attornment

  	
   

  	
  2.05

  	
   

  	
  7

  
	
  No
  Waiver

  	
   

  	
  6.02

  	
   

  	
  23

  
	
  No
  Waste

  	
   

  	
  11.02

  	
   

  	
  30

  
	
  Notices

  	
   

  	
  11.07

  	
   

  	
  31

  
	
  Option
  to Extend Lease

  	
   

  	
  2.12

  	
   

  	
  9

  
	
  Past
  Rent Due

  	
   

  	
  2.07

  	
   

  	
  7

  
	
  Plate
  Glass

  	
   

  	
  5.02

  	
   

  	
  20

  

 

2

 

	
  Caption

  	
   

  	
  Article

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Real
  Estate Taxes

  	
   

  	
  3.02

  	
   

  	
  12

  
	
  Recording

  	
   

  	
  11.11

  	
   

  	
  33

  
	
  Remedies
  Cumulative

  	
   

  	
  6.06

  	
   

  	
  24

  
	
  Rent
  Payment

  	
   

  	
  2.03

  	
   

  	
  6

  
	
  Rent
  Schedule

  	
   

  	
  2.04

  	
   

  	
  6

  
	
  Restoration

  	
   

  	
  9.01

  	
   

  	
  28

  
	
  Restoration
  of Security

  	
   

  	
  2.09

  	
   

  	
  8

  
	
  Return
  of Security

  	
   

  	
  2.11

  	
   

  	
  8

  
	
  Right
  to Cancel — Tenant

  	
   

  	
  2.13

  	
   

  	
  10

  
	
  Right
  to Cancel — Landlord

  	
   

  	
  2.14

  	
   

  	
  11

  
	
  Rubbish

  	
   

  	
  3.07

  	
   

  	
  16

  
	
  Rules and
  Regulations

  	
   

  	
  13.01

  	
   

  	
  35

  
	
  Security

  	
   

  	
  2.08

  	
   

  	
  8

  
	
  Security
  Gates

  	
   

  	
  10.02

  	
   

  	
  30

  
	
  Sidewalk

  	
   

  	
  1.05

  	
   

  	
  5

  
	
  Signage

  	
   

  	
  10.01

  	
   

  	
  29

  
	
  Subordination
  and Non-Disturbance

  	
   

  	
  8.01

  	
   

  	
  26

  
	
  Surrender

  	
   

  	
  11.03

  	
   

  	
  30

  
	
  Tenant’s
  Utilities

  	
   

  	
  3.06

  	
   

  	
  15

  
	
  Tenant’s
  Proportionate Share

  	
   

  	
  3.04

  	
   

  	
  14

  
	
  Transfer
  of Security

  	
   

  	
  2.10

  	
   

  	
  8

  
	
  Use

  	
   

  	
  1.04

  	
   

  	
  5

  
	
  Venue

  	
   

  	
  6.05

  	
   

  	
  23

  
	
  Waiver
  of Jury Trial

  	
   

  	
  6.03

  	
   

  	
  23

  
	
  Waiver
  of Landlord’s Lien

  	
   

  	
  11.16

  	
   

  	
  33

  
	
  Waiver
  of Redemption

  	
   

  	
  6.04

  	
   

  	
  23

  
	
  Water/Sewer
  Charges and Gas

  	
   

  	
  3.03

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule Al

  	
  -

  	
  Demised
  Premises Floor Plan

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule A2

  	
  -

  	
  Landlord’s
  Work

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule B

  	
  -

  	
  Surrender
  Declaration

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule C

  	
  -

  	
  Subordination,
  Non-Disturbance And Attornment Agreement

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule D

  	
  -

  	
  Tenant’s
  Plans

  	
   

  	
   

  	
   

  	
   

  

 

3

 

AGREEMENT OF LEASE made as of this 12th day of August, 2009,
between KAM HING REALTY-NYC, LLC, having
an office at 308 Fifth Avenue, New York, New York 10001, LANDLORD and WILSHIRE STATE BANK, a California banking
corporation, with offices at 3200 Wilshire Blvd., 7th Floor Los Angeles, California
90010, TENANT;

 

WITNESSETH:

 

ARTICLE I

 

1.01         DEMISED PREMISES    In
consideration of the rents, covenants and agreements hereinafter reserved and
contained on the part of Tenant to be observed and performed, Landlord demises
and leases to Tenant, and Tenant rents from Landlord, the ground floor,
excepting the common area vestibule thereof, the second floor and the basement,
subject to Landlord’s right of access to the basement hereinafter set forth, in
that building known as and by the street address 308 Fifth Avenue, New York,
New York 10001 (the “Building”), which premises consists of approximately 7,544
square feet of floor area, and which is hereinafter referred to as the
‘‘Demised Premises” and more particularly shown on the attached Schedule A-1.

 

1.02         AS IS    Tenant
represents that neither Landlord’s agents nor any broker or salesman or any
person has made any representation with respect to said Building or Demised
Premises except as herein expressly set forth. Tenant shall accept the Demised
Premises in its “as is” condition as of the date hereof; subject to same being
in “broom-clean” condition, vacant and free of all tenancies or occupancies,
free of all building code violations and in compliance with all applicable laws
and fire codes, and that the Building systems serving the Demised Premises
shall be in good and working order and further subject to completion of
Landlord’s Work described and set forth and defined in Schedule A-2 hereof. Notwithstanding the
foregoing, Landlord shall be responsible for any latent defects in the Demised
Premises including, without limitation, the Building systems serving same, for
a period of one (1) year following the Rent Commencement Date.

 

1.03         ADDITIONAL AREAS/LICENSE    (a) The use and
occupation of the Demised Premises by Tenant shall include the use, in common
with others entitled to such use, of the common areas, vestibule, elevator,
internal stair and halls, and other facilities as may be designated from time
to time by Landlord, but excluding those located within the Demised Premises,
subject, however, to the terms and conditions of this Agreement, and to
reasonable rules and regulations for the use thereof as prescribed, in
writing, from time to time by Landlord. Such additional areas are specifically
not included in the “Demised Premises” and are in the sole control of Landlord,
including the right to lease or license such common areas.

 

(b)           All common
areas and facilities not within the Demised Premises, which Tenant may be
permitted to use, are to be used under a license, and if the amount of such
areas be diminished, Landlord shall not be subject to any liability nor shall
Tenant be entitled to any compensation or diminution or abatement of rent, nor
shall the diminution of such areas be

 

4

 

deemed constructive or actual eviction; provided that same does not
adversely affect Tenant’s access to and/or the use and occupancy of the Demised
Premises as contemplated herein.

 

(c)           Tenant and
Tenant’s employees and agents shall not solicit or conduct business or display
merchandise in the common areas, nor shall Tenant distribute any handbills or
other advertising matter in the common areas or to customers in the common
areas.

 

(d)           The provisions
of this Article 1.03 (a), (b) and (c) to the contrary
notwithstanding, Tenant shall have the right to install an automatic teller
machine (“ATM”) and/or deposit box through its outside front wall on the ground
floor of the Building such that Tenant’s customers may access and use the ATM
and/or deposit box from the sidewalk, as Tenant may determine and as allowed by
applicable law, rule or regulation.

 

1.04         USE    Tenant
shall use and occupy Demised Premises for a bank branch and administrative and
general offices, and no other purpose. Tenant will not use, or permit or suffer
the use of, the Demised Premises for any other business or purpose, except with
the prior consent of Landlord. Landlord agrees that no other portion of the
Building shall be used or operated for retail banking during the term of this
Lease and any extensions thereof. This restriction upon further retail banking
includes making loans, accepting deposits, cashing checks, trust services, safe
deposit box rental, issuance of letters of credit, bank acceptances; or other
banking facilities, cash management, ATM services and other services
customarily associated with retail banks.

 

1.05         SIDEWALK    Tenant shall be
responsible for performing or engaging such services, as required, to remove
snow, ice, litter and debris from the sidewalk abutting the Building.
Maintenance of the sidewalk area in front of the Building shall be the
responsibility of Tenant.

 

1.06         BASEMENT    Tenant
acknowledges that its use of the basement is at its own risk, subject to the
certificate of occupancy of the Premises. Landlord makes no representations or
warranties to Tenant as to the fitness of the basement space for any use,
including storage, and Landlord shall not be liable to Tenant for damages
sustained to Tenant’s property in the basement by any cause except Landlord’s
and/or Landlord’s agents’, employees’ or contractors’ negligence and subject to
Article 4.05 hereof.

 

ARTICLE II

 

2.01         LEASE TERM    (a) The term of
this Lease (the “Lease Term”) shall commence as of the Commencement Date,
hereinafter defined, and shall end on the last day of that month following the
tenth (10th) anniversary
of the Mark Date, hereinafter defined (the “Expiration Date”), unless sooner
terminated or extended as provided for herein.

 

(b)            The “Commencement Date” is that date on which
possession of the Demised Premises is delivered to Tenant with all of
Landlord’s Work substantially completed, subject to punch list items, and
otherwise as required under this Lease. The Commencement Date shall be confirmed
by letter agreement between the parties; provided that the parties failure to
enter into

 

5

 

same
shall have no effect on the actual Commencement Date.

 

(c)           The first Lease
Year shall include that portion of the month from the Commencement Date to the
last day of the month in which the Commencement Date occurs, and, in addition,
from the first day of the month following the Commencement Date (the “Mark Date”)
to the day immediately preceding the first anniversary of the Mark Date.
Successive Lease Years shall follow consecutively from the first anniversary of
the Mark Date.

 

(d)           Landlord shall
deliver possession of the Demised Premises to Tenant on or before September 30,
2009. In the event that Landlord is unable to deliver the Demised Premises on
or before September 30, 2009, then Tenant shall receive an abatement of Base
Rent of two (2) days for each day from and after October 1, 2009 that
Landlord fails to deliver possession of the Demised Premises to Tenant. The
abatement shall be increased to three (3) days for each day from and after
November 1, 2009 that Landlord fails to deliver possession of the Demised Premises
to Tenant. In the event that possession is not delivered to Tenant and the Commencement
Date is not established on or before December 1, 2009, then and at any
time on or after December 1, 2009, Tenant shall have the right to continue
to accrue the abatement of rent or to cancel this Lease and obtain a refund of
the Lease security and first month’s rent paid upon execution hereof.

 

2.02         FORCE MAJEURE    In the event
that either party hereto shall be delayed or hindered in or prevented from the
performance of any act required hereunder by reason of strike, lockouts, labor
trouble, inability to procure materials, failure of power, restrictive
governmental laws or regulations, riots, insurrection, war, or other reason of
a like nature, not the fault of the party delayed in performing work or doing
acts required under the terms of this Lease, then performance of such act shall
be excused for the period of such delay. The provisions of this section shall
not operate to excuse Tenant from the prompt payment of rent, additional rent,
or any other payments required by the terms of this Lease.

 

2.03         RENT PAYMENT    Tenant
covenants and agrees to pay to Landlord during the term of this Lease at the
annual Base Rental rates set forth in Article 2.04 below without notice or
demand and without abatement, deduction or set-off of any amount whatsoever,
except as and if hereinafter specifically provided, which Tenant agrees to pay
in lawful money of the United States which shall be legal tender in payment of
all debts and dues, public and private, in equal monthly installments in
advance on the first day of each month during said term, at the office of Landlord
or such other place as Landlord may designate, except that Tenant shall pay the
first monthly installment on the execution hereof.

 

2.04         RENT SCHEDULE    (a) Tenant
covenants and agrees to pay to Landlord during the term of this Lease the
following Base Rent:

 

	
  PERIOD (in
  Lease Years)

  	
   

  	
   

  	
   

  	
  ANNUAL BASE RENT

  	
   

  	
   

  	
   

  	
  MONTHLY BASE RENT

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  First

  	
   

  	
  -

  	
   

  	
  $

  	
  371,652.00

  	
   

  	
  -

  	
   

  	
  $

  	
  30,971.00

  	
   

  
	
  Second

  	
   

  	
  -

  	
   

  	
  $

  	
  382,800.00

  	
   

  	
  -

  	
   

  	
  $

  	
  31,900.00

  	
   

  
	
  Third

  	
   

  	
  -

  	
   

  	
  $

  	
  394,284.00

  	
   

  	
  -

  	
   

  	
  $

  	
  32,857.00

  	
   

  
	
  Fourth

  	
   

  	
  -

  	
   

  	
  $

  	
  406,116.00

  	
   

  	
  -

  	
   

  	
  $

  	
  33,843.00

  	
   

  
	
  Fifth

  	
   

  	
  -

  	
   

  	
  $

  	
  418,296.00

  	
   

  	
  -

  	
   

  	
  $

  	
  34,858.00

  	
   

  
	
  Sixth

  	
   

  	
  -

  	
   

  	
  $

  	
  430,848.00

  	
   

  	
  -

  	
   

  	
  $

  	
  35,904.00

  	
   

  
	
  Seventh

  	
   

  	
  -

  	
   

  	
  $

  	
  443,772.00

  	
   

  	
  -

  	
   

  	
  $

  	
  36,981.00

  	
   

  
	
  Eighth

  	
   

  	
  -

  	
   

  	
  $

  	
  457,080.00

  	
   

  	
  -

  	
   

  	
  $

  	
  38,090.00

  	
   

  
	
  Ninth

  	
   

  	
  -

  	
   

  	
  $

  	
  470,796.00

  	
   

  	
  -

  	
   

  	
  $

  	
  39,233.00

  	
   

  
	
  Tenth

  	
   

  	
  -

  	
   

  	
  $

  	
  484,920.00

  	
   

  	
  -

  	
   

  	
  $

  	
  40,410.00

  	
   

  

 

6

 

(b)           (i)    The
foregoing provisions to the contrary notwithstanding, Tenant’s obligations to
pay Base Rent and additional rent are abated for the four (4) month period
commencing on the Commencement Date and terminating on that date which is four (4) months
from the Commencement Date (the “Rent Commencement Date”). In the event that
the Rent Commencement Date is not the first day of the month, then Tenant shall
apportion and pay the monthly installment of Base Rent, on a per diem basis,
until the first day of the month next succeeding the Rent Commencement Date,
and thereafter the Base Rent shall be payable as hereinabove provided. The
first monthly installment of Base Rent paid upon execution of the Lease and
referred to in Article 2.03 above shall be applied to the month next
succeeding the Rent Commencement Date.

 

(ii)    In addition to all other abatements of Base
Rent and additional rent hereunder, Tenant shall receive a further abatement of
Base Rent of fifteen thousand ($15,000.00) dollars, which is the agreed upon
cost of construction of the demising wall between the Demised Premises and the
common area vestibule, which demising wall will be constructed by Tenant at Tenant’s
expense until reimbursed pursuant to this Article 2.04(b)(ii). The
Tenant’s rent abatement pursuant to this sub-Article 2.04(b)(ii) shall
by applied to the Base Rent due to Landlord as of the Rent Commencement Date
and thereafter, and after those abatements of rent pursuant to Article 2.01(d),
if any, until Tenant is fully reimbursed for its construction costs aforesaid.

 

2.05       NO
ATTORNMENT    All checks
tendered to Landlord as and for the rent of the Demised Premises shall be
deemed payment for the account of Tenant. Acceptance by Landlord of rent from
anyone other than Tenant shall not be deemed to operate as an attornment to
Landlord by the payor of such rent, or as a consent by Landlord to an
assignment or subletting by Tenant of the Demised Premises to such payor, or as
a modification of the provisions of this Lease, except by writing, signed by
Landlord, explicitly consenting to such assignment or subletting or accepting
any such Lease modification.

 

2.06         LATE CHARGES    In the event
that the Base Rent or additional rent reserved herein is not received by
Landlord within ten (10) days after the due date, a late charge equal to
four (4%) percent of the late payment shall accrue and become immediately due
and payable to Landlord. The foregoing notwithstanding, no late charge shall
accrue or be due and payable upon Tenant’s failure to timely pay Base Rent or
additional rent, as aforesaid, until the second such occasion in any twelve
(12) month period.

 

2.07         PAST RENT DUE    If Tenant shall
fail to pay Base Rent and/or additional rent after the same is due and payable
and after lapse of the “grace” period described in Article 2.06 above, if
applicable, and after five (5) business days after notice of such failure
from Landlord,

 

7

 

then
such unpaid amounts shall bear interest from the original due date thereof to
the date of payment at the rate of twelve (12%) percent per annum or maximum
legal rate of interest, whichever is lower.

 

2.08         SECURITY    Tenant shall
deposit with Landlord the sum of $31,829.00 as security for the faithful performance
and observance by Tenant of the terms, provisions and conditions of this Lease.
It is agreed that in the event Tenant defaults, beyond applicable notice, grace
and cure periods, in respect of any of the terms, provisions and conditions of
this Lease, including but not limited to, the payment of Base Rent and
additional rent, Landlord may use, apply or retain the whole or any part of the
security so deposited to the extent required for the payment of any Base Rent
and/or additional rent as to which Tenant is in default, beyond applicable
notice, grace and cure periods, or for any sum which Landlord may expend or may
be required to expend by reason of Tenant’s default, beyond applicable notice,
grace and cure periods, in respect to any of the terms, covenants and
conditions of this Lease, including but not limited to, any damages or
deficiency in the re-letting of the Premises, whether such damages or
deficiency accrued before or after summary proceedings or other re-entry by
Landlord. Tenant further covenants that it will not assign or encumber or
attempt to assign or encumber the monies deposited herein as security and that
neither Landlord nor its successors or assigns shall be bound by any such
assignment, encumbrance, attempted assignment or attempted encumbrance. Tenant
shall not be permitted to apply the security deposit to any Base Rent or
additional rent payment at any time during the term of this Lease. If Tenant fails
to deliver the Premises in the condition as required pursuant to this Lease,
whether at the expiration of the term or sooner termination, Landlord may
without notice or further authority use the security deposit to repair, clean
or maintain the Demised Premises pursuant to the terms of this Lease and shall
return any excess not so applied to Tenant as set forth herein.

 

2.09         RESTORATION OF SECURITY    Should the
entire security deposit, or any portion thereof, be appropriated and applied by
Landlord for the payment of Base Rent or additional rent or other sums due and
payable to Landlord by Tenant hereunder, or if the Tenant fails to maintain the
Premises as required and Landlord uses the security deposit then on hand to
make such repairs or perform such maintenance as is required, then Tenant
shall, upon the written demand of Landlord, forthwith remit to Landlord a
sufficient amount in cash to restore said security to the original sum
deposited within ten (10) business days after receipt of demand. Failure
to make the payment required herein shall constitute a default.

 

2.10         TRANSFER OF SECURITY    In the event of
a sale of the land and Building or leasing of the Building of which the Demised
Premises form a part, Landlord shall have the right to transfer the security to
the vendee or lessee and, upon acknowledgement by such vendee or lessee to
Tenant of its receipt of the security, Landlord shall thereupon be released by
Tenant from all liability for the return of such security, and Tenant agrees to
look solely to the new Landlord for the return of said security; and it is
agreed that the provisions hereof shall apply to every transfer or assignment
made of the security to a new Landlord.

 

2.11         RETURN OF SECURITY    In the event
that Tenant shall fully and faithfully comply with all of the terms,
provisions, covenants and conditions of this Lease, the security shall be
returned without interest to Tenant within thirty (30) days after the date
fixed at

 

8

 

the
end of the Lease and delivery of possession of the entire Demised Premises to
Landlord.

 

2.12         OPTION TO EXTEND LEASE    (a) Provided
that Tenant is not in default, beyond applicable notice, grace and cure
periods, of any of the terms and conditions hereunder, it shall have the option
to extend this Lease under the same terms and conditions for one (1) additional
five (5) year period (the “Extension Term”), except that the Base Rent to be
paid during the Extension Term shall be as determined below. The Extension Term
 shall commence on eleventh anniversary
of the Mark Date and expire on the day prior to the sixteenth anniversary of
the Mark Date, unless sooner terminated pursuant to the terms hereof. The
option to extend the Lease must be exercised by Tenant on or prior to that date
which is nine (9) months before the expiration of the Lease Term.

 

(b)           The parties
shall have sixty (60) days after Landlord receives the notice of election to
exercise option in which to agree on Base Rent for the first Lease Year of the
Extension Term. If the parties agree on the Base Rent for the first year of the
Extension Term during that sixty (60) day period, then they shall immediately
execute an amendment to this Lease stating the Base Rent.

 

(c)           If the parties are
unable to agree on the Base Rent for the first Lease Year of the Extension Term
within that sixty (60) day period, then within thirty (30) days after the
expiration of such 60 day period the parties shall appoint a real estate
appraiser with at least 5 years’ full-time commercial appraisal experience in
the area in which the Building is located to appraise and set the Base Rent for
the first Lease Year of the Extension Term. If the parties cannot agree upon an
appraiser within thirty (30) days, then within ten (10) days after the
expiration of such 30 day period each party, at its cost and by giving notice
to the other party, shall appoint a real estate appraiser with at least five (5) years’
full-time commercial appraisal experience in the area in which the Building is
located to appraise and set the Base Rent for the first Lease Year of the
Extension Term. If a party does not appoint an appraiser within ten (10) days
after the other party has given notice of the name of its appraiser, the single
appraiser appointed shall be the sole appraiser and shall set the Base Rent for
the first year of the Extension Term. If the two (2) appraisers are
appointed by the parties as stated in this paragraph, they shall meet promptly
and attempt to set the Base Rent for the first Lease Year of the Extension
Term. If they are unable to agree within thirty (30) days after the second
appraiser has been appointed, the appraisers shall elect a third appraiser
meeting the qualifications stated in this paragraph within ten (10) days after
the last day the two (2) appraisers are given to set the Base Rent. If
they are unable to agree on the third appraiser, either of the parties to this
Lease by giving ten (10) days notice to the other party may apply to the
then president of the New York County real estate board, or to the presiding
judge of the Supreme Court of New York County, for the selection of a third
appraiser who meets the qualifications stated in this paragraph. Each of the
parties shall bear one half of the cost of appointing the third appraiser and
of paying the third appraiser’s fee. The third appraiser, however selected,
shall be a person who has not previously acted in any capacity for either
party.

 

(d)           Within thirty
(30) days after the selection of the third appraiser, a majority of the
appraisers shall set the Base Rent for the first Lease Year of the Extension
Term. If a majority of the appraisers are unable to set the Base Rent within
the stipulated period of time, the three (3)

 

9

 

appraisals shall be added together and their total divided by three
(3); the resulting quotient shall be the Base Rent for the Demised Premises for
the first Lease Year of the Extension Term.

 

(e)           However, if the
low appraisal and/or the high appraisal are more than fifteen (15%) percent
lower and/or higher than the middle appraisal, the low appraisal and/or the
high appraisal shall be disregarded. If only one appraisal is disregarded, the
remaining two appraisals shall be added together and their total divided by two
(2); the resulting quotient shall be the Base Rent for the Demised Premises for
the first Lease Year of the Extension Term. If both the low appraisal and the
high appraisal are disregarded as stated in this paragraph, the middle appraisal
shall be the Base Rent for the Demised Premises for the first Lease Year of the
Extension Term

 

(f)            After the Base
Rent for the first Lease Year of the Extension Term has been set, the appraisers
shall immediately notify the parties. If Tenant objects to the Base Rent that
has been set, Tenant has the right to have this Lease expire at the end of the Lease
Term, provided that Tenant pays all the reasonable out of pocket costs in
connection with the appraisal procedure that set the Base Rent. Tenant’s election
to allow this Lease to expire at the end of the Lease Term must be exercised
within thirty (30) days after receipt of notice from the appraisers of the Base
Rent for the first year of the Extension Term. If Tenant does not exercise its
election within the thirty (30) day period, the Lease Term shall be extended as
provided in this Article.

 

(g)           Until the Base
Rent for the first Lease Year of the Extension Term is determined, as
hereinabove provided, Tenant shall continue to pay the monthly Base Rent of the
preceding Lease Year. Upon determination of the Base Rent for the first Lease
Year of the Extension Term, Tenant shall forthwith remit the difference between
the Base Rent it had been paying during the Extension Term, pursuant to the
preceding sentence hereof, and the monthly Base Rent amount, as determined for
the first Lease Year of the Extension Term, for the lapsed months of the
Extension Term.

 

(h)           The Base Rent
for each of the second (2nd) through fifth (5th) Lease Years of the Extension Term will be three (3.0%) greater than
the Base Rent paid by Tenant in the immediately preceding Lease Year during the
Extension Term.

 

2.13         RIGHT TO CANCEL-TENANT    (a) Tenant shall have
the right to cancel the Lease at any time after the expiration of the seventh (7th) Lease Year upon the
following terms and conditions:

 

(i)            Tenant gives
Landlord at least fifteen (15) months prior written notice of its intention to
vacate on a date specified in such notice (the “Vacate Date”); and

 

(ii)           Tenant vacates
the Demised Premises on the Vacate Date and delivers to Landlord vacant,
unencumbered possession of the Demised Premises, free and clear of all tenants,
subtenants, occupants and any rights of tenants, subtenants or occupants, and
of all liens and/or rights to impose liens obtained by tenants, subtenants or
occupants; and

 

(iii)         Tenant signs and delivers to
Landlord on the Vacate Date a Surrender Declaration in form annexed as Schedule B; and

 

10

 

(iv)                               Tenant tenders
to Landlord on or before the Vacate Date the keys to the Demised Premises.

 

(b)                                 The Tenant’s
right to cancel, as set forth in Article 2.13(a) above, shall not be
carried into the Extension Term.

 

2.14                           RIGHT TO
CANCEL-LANDLORD    (a)  If Landlord shall determine to demolish the
entire Building of which the Demised Premises forms a part for reasons other
than a casualty or condemnation, then and in such event Landlord shall have the
right to cancel this Lease and the term demised herein, at any time after the
expiration of the seventh (7th)  Lease Year,
including any Extension Term, upon the following terms and conditions:

 

(i)                                    Landlord gives
Tenant prior written notice (the “Termination Notice”) during the term of this
Lease, which Termination Notice shall specify a cancellation date (the
“Cancellation Date”) which shall be at least fifteen (l5) months after the date
of the Termination Notice and shall fall on the last day of a calendar month;
and

 

(ii)                                Upon Tenant
delivering to Landlord vacant, unencumbered possession of the Demised Premises,
free and clear of all tenants, subtenants, occupants and any rights of tenants,
subtenants or occupants, and of all liens and/or rights to impose liens
obtained by tenants, subtenants or occupants, on or before the Cancellation
Date, Landlord shall pay to Tenant: (A) the unamortized cost of Tenant’s
leasehold improvements and (B) three (3%) percent of the unamortized cost
of Tenant’s leasehold improvements from the Commencement Date until the
Cancellation Date. Tenant will be provided an abatement of six (6) months then
current Base Rent commencing from the Termination Notice. For the purposes of
this Article 2.14(a)(ii), leasehold
improvements shall be deemed completely amortized over ten (10) years.

 

(b)                                 The parties
acknowledge that in the event Landlord exercises its right under
Article 2.14(a), then it is essential that the Landlord have possession of
the Demised Premises free of tenancies and of all rights of occupancy on or
before the Cancellation Date. Tenant covenants and agrees (i) that this
Lease shall terminate on the Cancellation Date with the same force and effect
as though said date were initially set forth as the expiration date, and (ii) to
vacate the Demised Premises by no later than the closing of business on the
Cancellation Date and agrees that time shall be of the essence with respect to
such time and date..

 

(c)                                  If Tenant fails
for any reason to vacate the Demised Premises by the close of business on the
Cancellation Date, then Tenant agrees that the measure of damages to be
sustained by Landlord as a result thereof are substantial, but unascertainable
as of the date of execution of this Lease and, therefore, Tenant agrees to pay
for use and occupancy of the Demised Premises at the rate of 200% of the then
current Base Rent, plus additional rent for each and every day that Tenant
shall remain in possession of the Demised Premises beyond the Cancellation
Date. Nothing herein contained shall be deemed to constitute consent of
Landlord to Tenant remaining in possession of the Demised Premises beyond the
Cancellation Date.

 

(d)                                 If Landlord
delivers to Tenant a Termination Notice as aforesaid, and thereafter fails to
actually demolish the entire Building within twenty (20) months from the Cancellation

 

11

 

Date,
then Landlord shall pay to Tenant the additional sum of Three Hundred Thousand
($300,000.00) Dollars as and for liquidated damages resulting from such early
termination of this Lease. Landlord’s obligations hereunder shall survive the termination
of this Lease.

 

ARTICLE III

 

3.01                           ADDITIONAL
RENT   
Whenever under the terms of this Lease any sum of money is required to
be paid by Tenant in addition to the Base Rent herein reserved, and said
additional amount so to be paid is not designated as “additional rent,” or
provision is not made in the Article covering such payment for the
collection of said amount as “additional rent”, then said amount shall
nevertheless, at the option of Landlord, if not paid when due, be deemed
“additional rent” and collectible as such with any installment of rent
thereafter falling due hereunder, but nothing herein contained shall be deemed
to suspend or delay the payment of any sum at the time the same became due and
payable hereunder, or limit any other remedy of Landlord. Failure to pay such
items when due shall constitute a default, after expiration of all applicable
notice, grace and cure periods pursuant to the terms of this Lease.

 

3.02                           REAL ESTATE
TAXES 
  (a) Commencing July 1,
2010, Tenant shall pay to Landlord, as additional rent hereunder, sixty-two and
five-tenths (62.5%) percent of Real Estate Taxes (“Tenant’s Tax Share”) in excess
of the Real Estate Taxes paid in the base tax fiscal year period commencing July 1,
2009 and ending June 30, 2010 (the “Base Year”). “Real Estate Taxes” shall
include, but not be limited to the total of all taxes and expenses or other
assessments (including business/special improvement district assessments)
levied, assessed or imposed at any time by any governmental authority upon or
against the land on and Building in which the Demised Premises is located identified
by the New York County Tax Block and Lot Numbers as follows: Section 3,
Block 833, Lot 42. In the event that Landlord shall construct an addition or
enlargement of any floor, or construct additional floor(s), to the Building,
then Tenant’s Tax Share of the Real Estate Taxes shall be adjusted to be that
percentage which is 62.5% minus one-half (1/2) of that percentage obtained by
dividing the square footage of the addition or enlargement by the present
square footage of the Building. Any payment of interest for late payment of
Real Estate Taxes shall not be included in the definition of Real Estate Taxes
and shall be the sole responsibility of Landlord. All refunds, rebates and
discounts received by Landlord in connection with such Real Estate Taxes shall
be deducted and Landlord’s reasonable out of pocket costs to obtain same, if any,
shall be added prior to the calculation of Tenant’s Tax Share for those periods
when such Real Estate Taxes are paid or payable by Tenant.

 

(b)                                 Amounts payable
under this Article shall be due and payable without set-off or deduction,
within thirty (30) days after Landlord renders a bill therefor to Tenant,
together with a copy of the tax bill for the Building for the Tax Year in
question and the tax bill for the Base Year. Copies of bills submitted by
Landlord for any items included in Real Estate Taxes shall be sufficient and conclusive
evidence of the amount of Real Estate Taxes and shall be deemed conclusive and
binding upon Tenant for purposes of calculation of the amount of additional
rent to be paid by Tenant pursuant to this Article, unless Tenant notifies
Landlord within one hundred eighty (180) days after receipt of such statement
that Tenant disputes the correctness thereof. Pending resolution of such
dispute, Tenant shall pay the additional rent in accordance therewith, but such
payment shall be without prejudice to Tenant’s position. Any additional rent
payable

 

12

 

pursuant
to this Article for a portion of a Tax Year shall be adjusted in
proportion to the number of days in such Tax Year during which this Lease is in
effect. A “Tax Year” is equivalent to the New York City fiscal year, currently July 1st  to  June 30th. The obligation of Tenant with respect to any
additional rent pursuant to this Article applicable to the last Tax Year
of the Lease Term or Extension Term, shall survive the expiration of the Lease
Term or Extension Term subject to the following sentence. Landlord’s failure to
render bills for Real Estate Taxes under the provisions of this Article shall
not prejudice its right to thereafter render said bill or bills for such fiscal
year or any subsequent fiscal year, so long as Landlord delivers same within
one (1) year of the end of any such fiscal year. The Base Rent reserved and covenanted
to be paid herein by Tenant to Landlord shall in no way be increased or
decreased or otherwise affected or imposed by reason of this Article.

 

(c)                                  In lieu of the
collection method described in Article 3.02(b) above, Landlord may elect
to collect the Real Estate Taxes as hereinafter set forth. Commencing July 1,
2010, and on the first day of each month thereafter during the term hereof,
Tenant shall pay, together with each monthly installment of Base Rent, one twelfth
(l/12th) of Tenant’s
Tax Share of the Real Estate Taxes for the current Tax Year, if available, in
excess of the Base Year Real Estate Taxes. If the amount of such current Real
Estate Taxes is not available, Tenant shall pay one-twelfth (l/12th) of Tenant’s Tax Share of
Real Estate Taxes, above the Base Year Real Estate Taxes, based upon the Real
Estate Taxes paid during the immediately preceding Tax Year until the amount of
current Real Estate Taxes is made available. Upon the amount of current Real
Estate Taxes being made available, Tenant shall forthwith remit the difference
between the Tenant’s Tax Share of Real Estate Taxes it had been paying pursuant
to the preceding sentence hereof and the Tenant’s Tax Share of Real Estate
Taxes, as made available, for the lapsed months of the new Tax Year. In the
event that Tenant’s actual Tax Share of Real Estate Taxes is less than the Tax
Share of Real Estate Taxes Tenant had been paying as aforesaid, then Landlord shall
credit against rent and/or promptly refund to Tenant any such overage paid to
Landlord, which obligation shall survive the expiration or earlier termination
of this Lease.

 

(d)                                 If the Real
Estate Taxes for any Tax Year shall be reduced after Tenant shall have paid
Tenant’s Tax Share of such Real Estate Taxes, then Landlord shall refund to
Tenant within sixty (60) days thereafter Tenant’s Tax Share of the net refund
received by Landlord after deduction of Tenant’s Tax Share of reasonable out of
pocket expenses, including fees of attorneys and real estate professionals,
incurred by Landlord in connection with reducing the assessed valuation and
obtaining the refund. If the Real Estate Taxes for any Tax Year shall be
reduced before having been paid, the amount of Landlord’s reasonable costs and
expenses of obtaining such reduction (but not exceeding the amount such reduction)
shall be added to and be deemed part of the Real Estate Taxes for such Tax
Year. For purposes of this Lease, in the event that in any Tax Year Real Estate
Taxes are reduced to an amount less than Real Estate Taxes for the Base Year,
Real Estate Taxes shall nevertheless be deemed to be equal to the Real Estate
Taxes for the Base Year.

 

(e)                                  Only the
installments due during any Lease Year shall be included in the Real Estate Taxes
for that Lease Year; any portion of any assessment deemed payable after the
term of this Lease, or any extension of the Lease, shall not be Tenant’s
obligation.

 

13

 

(f)                                    Landlord
warrants and represents to Tenant that none of the expenses included within
Real Estate Taxes shall be included within any other charge payable under this
Lease.

 

(g)                                 Anything
contained herein to the contrary notwithstanding, in no event shall Tenant be
obligated to pay any estate, inheritance, succession, capital levy, corporate
franchise, gross receipts, transfer or income tax of Landlord, or any charges in
replacement or substitution of or similar in character to the foregoing, nor
shall any of the same be deemed taxes payable by Tenant hereunder, unless the
same be imposed in lieu of the taxes and assessments payable by Tenant
hereunder, and then only to the extent that any such tax is solely applicable
to commercial property owners and the same would be payable if the Building
were the only property of Landlord subject to such alternate tax. In the event
a tax is levied in substitution for a tax which Landlord presently pays without
reimbursement from Tenant, Landlord shall pay such new tax without
reimbursement from Tenant.

 

(h)                                 In the event
Landlord elects to cause one or more separate tax lots to be established for
components of the Building, Tenant’s payment of its Tax Share of the Real
Estate Taxes will, in no event, be greater than it would otherwise have been
had Landlord not elected to cause separate tax lots to be established.

 

(i)                                     Landlord’s and
Tenant’s obligations under this Article 3.02 shall survive termination of
this Lease.

 

3.03                           WATER/SEWER CHARGES and GAS    (a) Tenant shall pay to
Landlord as additional rent within thirty (30) days of demand therefor,
together with evidence of the charges therefor from the respective utility
company, a sum equal to Tenant’s proportionate share of all water charges,
sewer rents and gas costs (“Water/Sewer & Gas Costs”) that Tenant’s
floor area bears to all floor are in the Building, as such items shall become
payable.

 

(b)                                 Landlord, in
its sole discretion, may provide Tenant with a reasonably estimated annual
budget based on the prior calendar year charges evidenced to Tenant for
Water/Sewer & Gas Costs for the Building, in which event Tenant agrees
to pay on the first day of each month, in equal monthly installments without
notice or demand therefor, its proportionate share of this estimate. Landlord
will provide an itemized accounting at the end of the fiscal year of all
Water/Sewer & Gas Costs incurred during the preceding period, at which
time Tenant shall be either credited or assessed for the difference between the
estimated and actual Water/Sewer & Gas Costs. All assessments shall be
paid within thirty (30) days of demand, together with evidence of the charges
therefor from the respective utility company.

 

3.04                           TENANT’S PROPORTIONATE SHARE    For the purposes of this Lease,
the Tenant’s floor area is 7,544 square feet. The total floor area of the
Building is 14,297 square feet. Tenant’s proportionate share of Water/Sewer &
Gas Costs is 53% [7,544 ÷ 14,297].

 

3.05                           COMPLIANCE WITH LAWS    (a)  Subject to
Landlord’s Work being completed in compliance with all applicable laws, Tenant
agrees at its own cost and expense to keep the Demised Premises in such order
and condition as shall conform to all applicable orders, rules and
regulations of all municipal, state and federal departments, boards,
commissions and governmental agencies now existing or hereafter created and, at
its own cost and expense,

 

14

 

promptly
execute and comply with all laws, rules, ordinances and regulations now in
force or hereafter enacted which affect the Demised Premises, exclusive of any
structural requirements which shall be Landlord’s sole obligation.

 

(b)                                 Subject to
Landlord’s Work being completed in compliance with all applicable laws, Tenant
further agrees to comply, at Tenant’s cost and expense, with all orders, regulations,
rules and recommendations, whenever issued, of the New York Board of Fire
Underwriters or of any similar organization and also to comply with the
recommendations and requirements of any insurance company which insures or
participates in insuring the Demised Premises against loss by fire, exclusive
of any structural requirements which shall be Landlord’s sole obligation.

 

(c)                                  Any provision
of this Lease to the contrary notwithstanding, Tenant’s obligation to comply
with Federal, state, municipal and other laws, rules, ordinances and the like,
and pertaining to structural alteration or modification of the Demised Premises,
shall be applicable to only the “particular manner in which Tenant conducts its
business in the Demised Premises;” and Tenant’s obligation to comply with any
such law, rule or ordinance, and pertaining to non-structural alterations
or modifications of the Demised Premises, shall be applicable to the Demised
Premises generally, without regard to the “particular manner in which Tenant
conducts its business in the Demised Premises.”

 

3.06                           TENANT’S UTILITIES    (a)  Landlord shall not be required to furnish or
supply heat, air-conditioning or electricity to Tenant and/or the Demised
Premises, subject to Landlord’s Work, and Landlord’s other obligations set forth
herein. Landlord shall cooperate with Tenant in Tenant’s efforts to obtain
telephone and cable television service to the Demised Premises. Tenant may use
the existing heating and air conditioning equipment and any other Buildings
systems serving the Demised Premises and shall maintain same in safe operating
condition and shall surrender same at the expiration of the term of this Lease
in the same condition as at the date hereof, less reasonable wear and tear and
Landlord’s repair obligations hereunder. Tenant agrees to obtain and keep in
continuous force and effect a maintenance contract for the heating and air
conditioning equipment and to maintain same in the ordinary course as a
condition to Landlord’s obligation to repair or replace the condenser,
evaporator and/or compressor components thereof.

 

(b)                                 The Demised
Premises is or shall be, at Landlord’s sole cost, separately metered for
electricity. Tenant agrees to pay directly to the provider for all utilities
not otherwise provided for in this Lease including, but not limited to,
electricity consumed by Tenant as measured by such meter(s). Landlord shall be
responsible for the cost of maintaining the utility service for such meter(s) at
Landlord’s sole cost. Tenant shall pay for utilities in connection with its use
and occupancy of the Demised Premises either directly to the utility furnishing
same or to the Landlord, pursuant to Article 3.03 above.

 

(c)                                  Any utilities
supplied by Landlord shall be charged at rates no higher than those which would
be charged by the local utility company.

 

(d)                                 If, due to any
act or omission by Landlord, its agents, employees or contractors, excepting
the results of force majeure, any utility or other service to the Demised
Premises is

 

15

 

interrupted
for forty-eight (48) consecutive hours or more and, as a result thereof, Tenant
is unable to continue its normal business operations in the Demised Premises,
all Base Rent, additional rent and other charges payable hereunder shall be equitably
reduced for the period during which such interruption exists taking into
account all of the relevant facts and circumstances. In the event of any such
interruption of any utility or other service to the Demised Premises, Landlord
shall use reasonable diligence to restore such service as soon as practicable.

 

3.07                           RUBBISH   
Tenant shall, at its own cost and expense, promptly dispose of all
garbage, trash and waste arising from the conduct of its business in the
Demised Premises at such times and in such manner so as to avoid any obnoxious
or offensive smells or odors therefrom or otherwise unreasonably interfering
with the comfort and enjoyment of the other occupants of the Building of which
the Demised Premises forms a part. Tenant shall keep all rubbish in covered
containers in accordance with all governmental rules ordinances and
regulations.

 

ARTICLE IV

 

4.0.1                        LANDLORD’S OBLIGATIONS    Except for Landlord’s Work,
Landlord shall not be required to perform any work on the Demised Premises.
Excepting Landlord’s Work, any work which Tenant may require for the
preparation of the Demised Premises for Tenant’s use shall be performed by
Tenant, at Tenant’s own cost and expense. Excepting Landlord’s Work, any
equipment or work which the Landlord installs or constructs in the Demised Premises
at the written request of Tenant and on Tenant’s behalf shall be paid for by
Tenant within fifteen (15) days after receipt of a detailed invoice therefor at
the reasonable out of pocket cost plus five (5%) percent thereof for overhead.

 

4.02                           CHANGES AND ADDITIONS TO BUILDINGS    (a) Landlord hereby reserves
the. right at any time to make alterations or additions to and to construct additional
stories on the Building in which the Demised Premises are contained or
additions thereto and to build additional stories on the same, so long as same
does not adversely affect Tenant’s use, occupancy and access to the Demised
Premises or otherwise unreasonably interfere with Tenant’s use, occupancy and
access.

 

(b)                                 In the event that
Landlord shall construct an addition or enlargement of any floor, or construct
additional floor(s), to the Building, then Tenant’s proportionate share, as
stated in paragraph 3.04, shall be reduced under the formula prescribed in
paragraph 3.04.

 

(c)                                  In no event
shall Tenant be responsible for any of the costs or expenses paid or incurred
by Landlord in performing any Landlord’s construction. Landlord shall
diligently prosecute Landlord’s construction to completion without interruption
or delay, in a good and workmanlike manner. If Landlord’s construction affects
or shall otherwise result in other work required in the Demised Premises,
including, without limitation, upgrading any construction or systems in the
Demised Premises to comply with applicable building codes, Landlord shall perform
such other work as may be required, all at Landlord’s sole cost and expense in
the

 

16

 

manner
required hereunder:

 

(d)                                 Any scaffolding
or other construction aid (collectively, “construction aids”) or covering
utilized or authorized by Landlord in connection with Landlord’s construction
during the term of this Lease shall be constructed and maintained above the
level of Tenant’s storefront and signage and otherwise installed .and
maintained in a manner so as not to block or diminish access to or visibility
of the Demised Premises and Tenant shall have the right to place its name, logo
and advertising content on any such construction aids, at Landlord’s cost and
expense. Landlord shall use diligent efforts to remove any such construction
aids as soon as possible. Notwithstanding anything contained in this Lease to
the contrary, Landlord will not permit any projections, vertical or horizontal,
to be erected or maintained (other than Tenant’s signs) which will project
along the front or side of the Building so as to in any manner obstruct the
view of Tenant’s signs or its store front.

 

4.03                           ALTERATIONS    (a) All alterations, decorations,
additions or improvements, except movable trade fixtures, made by either party
shall become the property of Landlord upon installation, unless Landlord shall
elect otherwise at the time that Tenant submits plans to Landlord for its
approval, to the extent such approval is required under this Lease, and if no
approval was required, then as to any such alterations, decorations, additions
or improvements made without approval, Landlord may elect otherwise by giving
notice not less than sixty (60) days prior to the expiration or other
termination of this Lease, or any renewal or extension thereof. In the event
that Landlord shall elect otherwise, then such alterations, installations,
additions or improvements made by Tenant upon the Demised Premises, as Landlord
shall elect, shall be removed by Tenant and Tenant shall restore the Demised
Premises to the original condition, at its own cost and expense, prior to the
expiration of the term. All damage or injury to the Demised Premises, and to
its fixtures, appurtenances and equipment caused by Tenant moving property in
or out of the Building, or by installation or removal of furniture, fixtures or
other property, shall be repaired by Tenant. There shall be no allowance to
Tenant for a diminution of rental value and no liability on the part of
Landlord by reason of inconvenience, annoyance or injury to business arising
from Landlord, Tenant, or others, making any repairs, alterations, additions,
or improvements to any portion of the Building or Demised Premises, or to fixtures,
appurtenances, or equipment thereof, and/or by reason of failure of Landlord or
others to make any repairs, alterations, additions or improvements in or to any
portion of the Building or of Demised Premises, or to the fixtures,
appurtenances or equipment thereof except as specifically set forth herein.
Landlord reserves the right to stop the service of the heating, air conditioning,
plumbing and electrical systems when repairs, alterations or improvements are
reasonably necessary, until such repairs, alterations or improvements shall
have been completed; provided that Landlord uses diligent efforts to minimize
any interference with Tenant’s use and occupancy of the Demised Premises and
diligently procures such work to completion. Notwithstanding anything contained
herein to the contrary, in no event shall Tenant be obligated to remove any
demising wall(s) between the Demised Premises and the common area
vestibule.

 

(b)                                 Tenant
covenants throughout the term hereof, at its sole cost and expense, to keep the
Demised Premises, and all fixtures and equipment therein, all utility systems,
and all signs of Tenant erected outside thereof, in good repair, order and
condition, making all repairs thereto as may be reasonably required or
necessary, ordinary as well as extraordinary, foreseen and

 

17

 

unforseen,
but the provisions of this Lease shall not require Tenant to make repairs to
the structural parts of the Building, including, but not limited to, bearing
walls, beams, or roof, it being agreed and understood that Landlord shall make
all structural repairs, unless the conditions necessitating such repairs to structural
parts shall have been solely caused by Tenant, its agents, servants or invitees
and subject to Article 3.05(c) hereof; it being agreed, however, that
store fronts shall not be deemed structural parts of the Building within the
meaning of the foregoing, and repairs to store fronts are ordinary repairs.

 

(c)                                  If Tenant
refuses or neglects to repair property as required in this Lease agreement and to
the reasonable satisfaction of Landlord within thirty (30) days or such longer
period as is reasonable under the circumstances, after written demand, Landlord
may make such repairs and shall not be liable to Tenant for any loss or damage
that may occur to Tenant’s merchandise, fixtures, or other property, or to
Tenant’s business by reason thereof, except if arising from Landlord’s,
Landlords agents’, employees’ and/or contractors’ negligence or willful
misconduct, and upon completion thereof, Tenant shall pay Landlord’s cost for
making such repairs plus fifteen (15%) percent for overhead and supervision, as
additional rent, to be paid by Tenant within ten (10) business days of receipt
of a detailed statement from Landlord setting forth said charges and
disbursements.

 

(d)                                 Landlord shall
assist and cooperate with Tenant, without charge to Tenant, in obtaining any
and all building permits, licenses, approvals and temporary and permanent certificates
of occupancy which may be required for any alterations permitted pursuant to
the terms hereof and the lawful construction and occupancy of the Demised Premises
for the permitted use.

 

(e)                                  The Tenant’s
plans and renderings depicting Tenant’s alterations to the Demised Premises and
attached to this Lease as Schedule D are approved by the Landlord. Landlord
shall not unreasonably withhold or delay approval of Tenant’s requests for reasonable
modifications to the plans attached as Schedule D, or other initial
alterations.

 

4.04                           LANDLORD’S
RIGHT TO ENTER    (a) Landlord
or Landlord’s agents shall have the right to enter the Demised Premises at
reasonable times, upon reasonable prior written notice to examine the same and
to show the Demised Premises to prospective purchasers of the Building, to make
such repairs, alterations, improvements or additions as Landlord may deem
necessary or desirable, to service the Building hot water heater, to read or
have read the electrical meters that service the Demised Premises and other
spaces of the Building, and Landlord shall be allowed to take all material into
and upon said Demised Premises (but may not store any of same in the Demised
Premises) that may be required therefore. During the six months prior to the
expiration of the term of this Lease, or any renewal term, Landlord may exhibit
the Demised Premises to prospective tenants or purchasers, upon reasonable
advance notice and at mutually agreeable times with a representative of Tenant
present at all such times. At no time during the Lease Term shall Landlord or
Landlord’s agents have the right to enter the Demised Premises without a
representative of Tenant present pursuant to the foregoing restrictions.  Furthermore, in no event shall Landlord have
the right to enter into any areas

 

18

 

designated
by Tenant as “security areas” in the Demised Premises, as designated by Tenant
in its sole discretion, except upon reasonable notice during regular business
hours and accompanied by Tenant’s representative.

 

(b)                                 If an
excavation shall be made upon land adjacent to the Demised Premises, or shall
be authorized to be made, Tenant shall afford to the person causing or
authorized to cause such excavation license to enter upon the Demised Premises
upon advance notice reasonable under circumstances at mutually agreeable times
with a representative of Tenant present at all such entries, for the purpose of
doing such work as shall be reasonable to preserve the wall of the Building of which
the Demised Premises form a part from injury or damage and to support the same
by proper foundations, without any claim for damages or indemnification against
Landlord or diminution or abatement of rent.

 

4.05                           LANDLORD’S LIABILITY    Subject to Landlord’s repair
obligations set forth in this Lease, Landlord and Landlord’s agents and
employees shall not be liable, and Tenant waives all claims, for loss or damage
to Tenant’s business or damage to person or property sustained by Tenant or any
person claiming through Tenant resulting from any accident or occurrence
(unless caused by or resulting from the negligence or willful misconduct of
Landlord, its agents, contractors, servants or employees) in or upon the
Demised Premises or the Building, or any other part of the Building, including
but not limited to claims for damage resulting from: (i) any equipment or
appurtenances becoming out of repair; .(ii) injury done or occasioned by
wind or rain; (iii) any defect in or failure of plumbing, heating or air
conditioning equipment, electric wiring or installation thereof, gas, water and
steam pipes, stairs, porches, railings or walks; (iv) broken glass; (v) the
backing up of any drain, sewer pipe or downspout; (vi) the bursting,
leaking, seeping or running of any tank, tub, washstand, water closet, waste
pipe, drain or any other pipe or tank in, upon or about the Building or Demised
Premises; (vii) the escape of steam, hot water, gas, electricity or oil; (viii) water,
snow or ice being upon or coming through the roof, floor, walls, skylight,
trapdoor, stairs, doorways, show windows, walks or any other place upon or near
the Building or the Demised Premises or otherwise; (ix) the falling of any
fixture, plaster, tile or stucco; and (x) any act, omission or negligence
of other tenants (other than Landlord or its affiliates), licensees or of any
other persons or occupants of the Building or of adjoining or contiguous Buildings
or property.

 

4.06                           MECHANIC’S LIENS    Except in connection with
Landlord’s Work, if any mechanic’s lien or other liens or orders for the
payment of money or any notice of intention to file a lien shall be filed
against the Demised Premises, or the Building or improvement of which the Demised
Premises form a part, by reason or arising out of any labor or material furnished
or alleged to have been furnished or to be furnished to the Demised Premises or
any occupant thereof, or for or by reason of any change, alteration or addition
or the cost or expense thereof or any contract relating thereto, or against the
interest of Landlord, Tenant shall cause the same to be cancelled and
discharged of record by bond or otherwise as allowed by law at the expense of
Tenant within thirty (30) days after Tenant receives notice of the filing
thereof; and Tenant shall also defend on behalf of Landlord, at Tenant’s sole
cost and expense, any action, suit or proceeding which may be brought thereon
or for the enforcement of such liens or orders, and Tenant will pay any
reasonable out of pocket damages and satisfy and discharge any judgment entered
thereon and save harmless Landlord from any claim or damage resulting
therefrom.

 

19

 

ARTICLE V

 

5.01                           LIABILITY
INSURANCE    (a) Tenant
shall, during the entire term hereof, at Tenant’s expense, keep in full force
and effect a policy of public liability and property damage insurance with
respect to the Demised Premises, and the business operated by Tenant in said
Demised Premises, of which the limits of public liability shall not be less
than $5,000,000.00 per accident and the property damage liability shall not be
less than $1,500,000.00. The policy shall name Landlord, any person, firms or corporations
designated by Landlord in writing, and Tenant as insured, and shall contain a
clause that the insurer will not cancel or change the insurance without first
giving Landlord thirty (30) days prior written notice. The insurance shall be
purchased from an insurance company reasonably approved by Landlord and a copy
of the policy or a certificate of insurance shall be delivered to Landlord
within ten (10) days after signing of the Lease herein by both parties, or in
any event prior to the Commencement Date. Upon a failure, after five (5) days’
demand, of Tenant to obtain the insurance policy described above, Landlord is
hereby authorized to obtain a policy of insurance, in the limits set forth
above on behalf of Tenant and the reasonable premiums for such policy, shall be
due and payable with the installment of rent next due.

 

(b)                                 Tenant’s
insurance may be effected by blanket coverage and limitations may be reached by
or through excess liability coverages or policies.

 

(c)                                  All policies of
insurance to be maintained by Landlord and/or Tenant under this Lease shall
contain a waiver of subrogation in favor of the other party hereto releasing
such other party from any liability to such party’s insurer. Furthermore, each
party hereby releases the other party, with respect to any claim (including a
claim for negligence) which it might otherwise have against the other party,
for loss, damage or destruction with respect to its property occurring during
the term of this Lease to the extent to which it is, or is required to be,
insured under a policy or policies containing a waiver of subrogation or
permission to release liability.

 

(d)                                 Landlord
covenants and agrees that at all times during the term of this Lease, Landlord
will maintain in force and effect a policy or policies of fire and extended
coverage insurance with so-called “all risk” insurance endorsements covering
the Demised Premises, the common areas and the Building and all the
improvements therein (except for Tenant’s trade fixtures, inventory, equipment
and other personal property) to the extent of no less than one hundred (100%) percent
of the full replacement cost thereof. Landlord shall also provide commercial
general liability coverage, including broad form endorsement, of which the
limits shall be no less than $5,000,000.00.

 

5.02                           PLATE GLASS    Tenant shall replace, at the
sole cost and expense of Tenant, any and all plate and other glass damaged or
broken from any cause whatsoever, exclusive of any act or omission of Landlord,
its agents, employees and/or contractors, in and about the Demised Premises.

 

5.03                           HOLD HARMLESS    (a) Tenant shall keep,
save and hold harmless Landlord

 

20

 

from
any and all damages and liability arising out of the occupancy of Tenant,
Tenant’s agents or servants, and from any loss or damage arising from any
default, beyond applicable notice, grace and cure periods, by Tenant hereunder.

 

(b)           In case Landlord shall,
without fault on its part, be made a party to any litigation commenced by or
against Tenant, Tenant shall protect and hold Landlord harmless and shall pay
all reasonable, out of pocket costs, expenses and reasonable attorneys’ fees
incurred or paid by Landlord in connection with such litigation; Tenant shall
also pay all reasonable out of pocket costs, expenses and reasonable attorney’s
fees that may be incurred or paid by Landlord in enforcing the covenants and
agreements of this Lease.

 

(c)           Landlord shall keep,
save and hold harmless Tenant from any and all damages and liability arising
out of the use, occupancy and maintenance of the Building by Landlord, Landlord’s
agents, employees and/or contractors, and from any loss or damage arising from
any default, beyond any applicable notice, grace and cure periods, by Landlord
hereunder.

 

5.04         ACTS OF
INVITEES, ET AL.    Tenant
shall be responsible for the acts of its customers, guests, contractors,
licensees, invitees and/or anyone else, on the Demised Premises at the
invitation of Tenant, or anyone in their employ, or anyone occupying or using
space.

 

ARTICLE VI

 

6.01         DEFAULT    (a) If Tenant defaults in
fulfilling any of the covenants of this lease other than the covenants for the
payment of rent or additional rent; or if the Demised Premises become vacant or
deserted for more than thirty (30) consecutive days, except in connection with
a casualty, alteration, force majeure event and/or an assignment of this Lease
or subletting of the Demised Premises; or if any execution or attachment shall
be issued against Tenant or any of Tenants property, whereupon the Demised
Premises shall be taken or occupied by someone other than Tenant, except as
specifically herein permitted; or if this lease be rejected under Section 365
of Title 11 of the U.S. Code (Bankruptcy Code); then, in any one or more of
such events, upon Owner serving a written thirty (30) days notice upon Tenant
specifying the nature of said default, and upon the expiration of said thirty
(30) days, if Tenant shall have failed to comply with or remedy such default,
or if the said default or omission complained of shall be of a nature that the
same cannot be completely cured or remedied within said thirty (30) day period,
and if Tenant shall not have diligently commenced curing such default within
such thirty (30) day period, and shall not thereafter with reasonable diligence
and in good faith proceed to remedy or cure such default, then Owner may serve
a written five (5) days notice of cancellation of this Lease upon Tenant,
and upon the expiration of said five (5) days, this Lease and the term
thereunder shall end and expire as fully and completely as if the expiration of
such five (5) day period were the day herein definitely fixed for the end
and expiration of this Lease and the term thereof and Tenant shall then quit
and surrender the Demised Premises to Owner, but Tenant shall remain liable as
hereinafter provided.

 

(b)           If the cancellation
notice provided for in 6.01(a) hereof shall have been given, and the term
shall expire as aforesaid; or if Tenant shall fail to make payment of the rent

 

21

 

reserved
herein, or any item of additional rent herein mentioned, or any part of either,
or in making any other payment herein required within five (5) business days
after notice thereof from Landlord; then, and in any of such events, Owner may
re-enter the Demised Premises and dispossess Tenant by summary proceedings, and
the legal representative of Tenant or other occupant of the Demised Premises,
and remove their effects and hold the Demised Premises as if this Lease had not
been made.

 

(c)           In the case of any
such default, beyond applicable notice, grace and cure periods, re-entry,
expiration and/or dispossess by summary proceedings or otherwise, (i) the
rent shall become due thereupon and to be paid upon the time of such reentry,
dispossess and/or expiration, together with such reasonable out of pocket
expenses as Landlord may incur by reason thereof for legal expenses, attorneys’
fees, brokerage, in putting the Demised Premises in good order, and/or for
preparing the same for re-rental; (ii) Landlord may relet the Demised
Premises or any part or parts thereof, either in the name of Landlord or
otherwise, for a term or terms which may at Landlord’s option be less than or
exceed the period which would otherwise have constituted the balance of the
term of this Lease, and may grant concessions or free rent; and (iii) Tenant
or the legal representative of Tenant shall also pay Landlord as liquidated
damages for the failure of Tenant to observe and perform said Tenant’s
covenants herein contained, any deficiency between the rent and additional rent
hereby reserved: and/or covenanted to be paid and the net amount, if any, of
the rents collected on account of the lease or leases of the Demised Premises
for each month of the period which would otherwise have constituted the balance
of the term of this Lease. The failure of Landlord to relet the Demised
Premises or any part or parts thereof or to collect rent therefor shall not
release or affect Tenant’s liability for damages; provided Landlord uses
diligent efforts to so relet the Demised Premises. Any such liquidated damages
shall be paid in monthly installments by Tenant on the due date specified in
this Lease and any suit brought to collect the amount of the deficiency for any
month shall not prejudice in any way the rights of Landlord to collect the
deficiency for any subsequent month by a similar proceeding. Landlord, at
Landlord’s option, may make such alterations, repairs, replacements and/or
decorations in the Demised Premises as Landlord in Landlord’s then reasonable
judgment, considers reasonably advisable and necessary for the purpose of
re-letting the Demised Premises; and the making of such alterations and/or
decorations shall not operate or be construed to release Tenant from liability
hereunder as aforesaid. In the event of a breach by Tenant of any of the
covenants or provisions hereof, beyond any applicable notice, grace and cure
periods, Landlord shall have the right of injunction and the right to invoke
any remedy allowed at law or in equity as if re-entry, summary proceedings and other
remedies were not herein provided for. Mention in this Lease of any particular
remedy shall not preclude Landlord from any other remedy, in law or in equity.

 

(d)           In the event Tenant shall
fail to comply with or perform any of the covenants, conditions or agreements
herein contained on Tenant’s part to be performed prior to expiration of
applicable notice, grace and cure periods, Landlord shall have the right (but
not be obligated) to perform any such covenants, conditions or agreements and
Tenant agrees to pay to Landlord on demand as additional rent hereunder, a sum
equal to the reasonable out of pocket amount expended by Landlord in the
performance of such covenants, conditions or agreements. In the event Landlord
shall perform any such covenants, conditions or agreements, Tenant agrees that
Landlord, its agents or employees, may, upon reasonable written notice and at
reasonable

 

22

 

times,
enter the Demised Premises and that such entry and such performance shall not
constitute an eviction of Tenant, in whole or in part, nor relieve Tenant from
the continued performance of all covenants, conditions and agreements of the
Lease, and further agrees that Landlord shall not be liable for any claim for
loss or damage to Tenant or anyone through or under Tenant, except to the
extent arising from Landlord’s and/or its agents’, employees’ or contractors’
willful misconduct or negligence; provided, however, that Landlord uses reasonable
efforts to minimize any interference to Tenant.

 

6.02         NO WAIVER    The receipt by Landlord of Base Rent or
additional rent with knowledge of the breach of any covenant of this Lease shall
not be deemed a waiver of such breach. No provision of this Lease shall be
deemed to have been waived by Landlord or Tenant, unless such waiver be in
writing signed by Landlord or Tenant, as applicable. No payment by Tenant or receipt
by Landlord of a lesser amount that the Base Rent or additional rent then due
shall be deemed to be other than on account of full payments, 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’s right to
recover the balance of such rent or pursue any other remedy provided for by
this Lease and/or at law shall not be diminished

 

6.03         WAIVER OF JURY TRIAL    It is agreed that the parties shall, and
hereby do waive trial by jury in any action, proceeding or counterclaim brought
by either of the parties hereto against the other on any matters arising out of
or in any way connected with this Lease, the relationship of Landlord and
Tenant, Tenant’s use or occupancy of said Demised Premises, and/or any claim of
injury or damage. In the event Landlord commences any summary proceedings for
nonpayment of Base Rent or additional rent, Tenant will not interpose any
counterclaim in such proceedings (except for compulsory counterclaims). Tenant
may assert such claims in a separate action.

 

6.04         WAIVER OF REDEMPTION    Tenant hereby expressly waives any and
all rights of redemption granted by or under any present or future laws in the
event of Tenant being evicted or dispossessed for any cause, or in the event of
Landlord obtaining possession of the Demised Premises, by reason of the
default, beyond applicable notice, grace and cure periods, by Tenant of any of
the covenants and conditions of this Lease, or otherwise. No receipt of monies
by Landlord from Tenant after the termination or cancellation of this Lease, in
any lawful manner, shall reinstate, continue or extend the term of this Lease,
or affect any notice theretofore given to Tenant, or operate as a waiver of the
right of Landlord to enforce the payment of fixed or additional rent or rents
then due, or thereafter falling due or operate as a waiver of the rights of Landlord
to recover possession of the Demised Premises by proper suit, action,
proceeding or remedy. It is agreed that, after the service of notice to
terminate or cancel this Lease as elsewhere herein provided and pursuant to the
terms herein contained, or the commencement of suit, action or summary
proceeding, or any other remedy, or after a final order or judgment for the
possession of the Demised Premises, Landlord may demand, receive and collect
any monies due, or thereafter falling due, without in any manner affecting such
notice, proceeding, suit, action, order or judgment. Any and all such monies
collected shall be deemed to be payments towards satisfying Tenant’s
obligations to Landlord.

 

6.05         VENUE    In the event of any dispute
under the terms of this Lease, the parties

 

23

 

agree
that the venue for settling the dispute, will be placed in New York County,
State of New York and none other.

 

6.06         REMEDIES CUMULATIVE    All the rights and remedies herein given
to Landlord for the recovery of the Demised Premises because of the default,
beyond applicable notice, grace and cure periods, by Tenant in the payment of
any sums which may be payable pursuant to the terms of this Lease, or the right
to re-enter and take possession of the Demised Premises upon the default or
breach of any other covenants beyond applicable notice, grace and cure periods,
or the right to maintain any action for Base Rent or additional rent, or
damages and all other rights and remedies allowed at law or in equity, are hereby
reserved and conferred upon Landlord as distinct, separate and cumulative
remedies, and no one of them, whether exercised by Landlord or not, shall be
deemed to be in exclusion of any of the others. All rights and remedies herein
given to Tenant because of default, beyond applicable notice, grace and cure
periods, by Landlord hereunder and all other rights and remedies allowed at law
or in equity, are hereby reserved and conferred upon Tenant as distinct, separate
and cumulative remedies and no one of them, whether exercised by Tenant or not,
shall be deemed to be in exclusion of any of the others.

 

ARTICLE VII

 

7.01         ASSIGNMENT AND SUBLETTING    (a) Tenant shall not assign this
Lease, or any interest herein, or mortgage or hypothecate this Lease, or any
interest herein, or permit the use of the Demised Premises by any person or
persons other than Tenant, or sublet the Demised Premises in whole or in part,
without Landlord’s prior written consent, which shall not be unreasonably
withheld, conditioned or delayed. This prohibition against assigning or
subletting shall be construed to include any transfer of this Lease from Tenant
by merger, consolidation, liquidation or otherwise by operation of law and
except to the extent otherwise set forth herein, shall require the written
consent of Landlord, which shall not be unreasonably withheld, conditioned or
delayed.

 

(b)           Any consent by
Landlord to an assignment and/or sublease shall apply only in the given
instance, and a further like act by Tenant or its assignee or subtenant shall
require a further prior written consent of Landlord. If Tenant is a
corporation, the issuance or transfer of any of the shares of stock of said
corporation which results in a change in the ownership of (i) the voting
control and/or (ii) the majority of the issued and outstanding stock of
said corporation, as compared with such ownership on the date of this Lease,
shall be deemed to be an assignment prohibited hereby.

 

(c)           In the event that
Tenant shall seek Landlord’s permission to assign this Lease or sublet the
Demised Premises, Tenant shall provide to Landlord the name, address and
financial statement of the proposed assignee or sublessee and such other
information concerning such proposed assignee or sublessee as Landlord may reasonably
require. Any sublessee, assignee or transferee must be of a similar character
to the Tenant.

 

(d)           In the event that
Tenant shall at any time during the term of this Lease sublet all or any part
of the Demised Premises or assign this Lease, either with the consent of
Landlord as

 

24

 

herein
provided or without the consent of Landlord as permitted herein, then, and in
such event, it is hereby mutually agreed that Tenant shall nevertheless remain
fully liable under all the terms, covenants and conditions of this Lease
including, but not limited to, the provisions for the payment of rent. Tenant’s
liability hereunder shall be continuing and shall in no way be affected,
modified, increased or diminished by reason of (i) any subsequent
assignment or subletting, renewal, modification or extension of this Lease, or (ii) any
modification or waiver of or change in any of the terms, conditions and
covenants of this Lease, or (iii) any extension of time that may be granted
by Landlord to any assignee or sublessee, its successors or assigns, or (iv) a
changed or different use of the Demised Premises consented to in writing by
Landlord, or (v) any dealings, transactions, or matters occurring between
Landlord and said assignee or sublessee, its successors or assigns whether or
not notice thereof is given to Tenant. If this Lease be assigned, subleased or
any part thereof be subleased or occupied by anybody other than Tenant,
Landlord may collect from the assignee, sublessee or occupant any rent or other
charges payable by Tenant under this Lease, and apply the-amount collected to the rent
and other charges herein reserved, but such collection by Landlord shall not be
deemed an acceptance of the assignee, sublessee or occupant as a tenant nor a
release of Tenant from performance by Tenant under this Lease.

 

(e)           Landlord shall not
unreasonably withhold, delay or condition its consent to an assignment of this
Lease in connection with a bona fide sale of Tenant’s business (conducted at
the Demised Premises), provided (i) the assignee assumes in writing the performance
and observance of all the terms, covenants and conditions of this Lease on the
part of Tenant to be performed and observed; (ii) the assignee shall
conduct its business in accordance with the permitted uses; (iii) the
assignee shall have substantial retail or banking experience; and (iv) a
duplicate original of the assignment and assumption is delivered to Landlord
within five (5) business days after its execution, to the extent permitted
by law and/or banking regulations and if not, at such time when delivery of same
is permitted.

 

(f)            In the event of any
sale, assignment, sublease or other transfer of this Lease either by consent,
court or administrative proceeding, or otherwise, whereby the Base Rent and or
additional rent provided for in said assignment, sublease or other transfer
exceeds the Base Rent and/or additional rent payable by Tenant to Landlord as
provided in this Lease, less Tenant’s reasonable out of pocket costs, if any,
for brokerage fees and commissions, legal fees and tenant concessions in
connection with the assignment and/or sublease (the “Excess Rent”), then this
Excess Rent shall be shared by Landlord and Tenant equally, and Landlord’s
share of such Excess Rent shall be due and payable to Landlord in addition to annual
Base Rent and additional rents provided for in this Lease. This provision shall
be binding upon Tenant, Tenants representatives, and Tenant’s transferees.

 

(g)           Notwithstanding
anything contained in this Lease to the contrary, Tenant shall have the right
to assign, transfer or otherwise convey this Lease or sublet all or any portion
of the Demised Premises (without the consent of Landlord and without the
necessity to share any proceeds of such transaction with Landlord) in
connection with (i) a merger, consolidation or reorganization of Tenant, (ii) a
sale of any of the capital stock of, or equity interest in, Tenant, or
(iii) a sale of all or a substantial portion of the assets of Tenant, or
the stock of Tenant or leases for (or assets of) branches operating under the
then-current trade name of Tenant conducting

 

25

 

business
in the majority of Tenant’s branches in the region in which the Building is
located, or (iv) any assignment or subletting involving an Affiliate.

 

(h)           If Landlord and an
unaffiliated assignee of Tenant amend this Lease, Tenant shall not be liable
for the performance and observance of the obligations to be performed by the
assignee pursuant to the provisions of this Lease, as amended; however; Tenant
shall remain liable for the performance and observance of all the original
obligations to be performed by Tenant pursuant to this Lease (unless otherwise
expressly provided in this Lease), provided that Tenant shall have received
copies of any default notice(s) and a reasonable opportunity to cure any
such default.

 

(i)            The issuance or
transfer of the stock, partnership interests or other equity interests of
Tenant (i) as a result of the public offering or trading of Tenant’s stock
on a nationally recognized exchange or on the NASDAQ over-the-counter market or
(ii) as a result of a private placement or other raising of funds to be
invested in Tenant for future expansion or additional working capital, shall
not be deemed to be an assignment, transfer or change in control requiring
Landlord’s consent.

 

(j)            For the purposes of
this Lease, the term “Affiliate” shall mean Tenant’s parent or any division,
subsidiary or affiliate of Tenant as Tenant’s parent, or any other entity
controlling, controlled by, or under common control or ownership with Tenant,
Tenant’s parent or any successor to any of the aforesaid.

 

(k)           In the event of any
assignment of this Lease or subletting of all or any portion of the Demised
Premises, the assignee or subtenant, as the case may be, shall have the right
to change the permitted use as contemplated herein, subject to Landlord’s
approval.

 

ARTICLE VIII

 

8.01         SUBORDINATION AND NON-DISTURBANCE    (a) Within thirty (30) days of the date
hereof, Landlord shall deliver to Tenant from each existing mortgagee or other
holder of an interest in the Demised Premises (each a “Lender”) superior to
Tenant’s leasehold interest therein a fully executed and notarized written
agreement (hereinafter referred to as a “Non-Disturbance Agreement”) in
substantially the form annexed hereto as Schedule
C. In the event that Landlord
fails to timely provide a Non-Disturbance Agreement as aforesaid, then Tenant
shall have the right to either (x) terminate this Lease upon notice to Landlord
or (y) receive an abatement of Base Rent due hereunder on a per diem basis
for each day that Landlord fails to deliver same after expiration of the
aforesaid thirty (30) day period.

 

(b)           Landlord’s right and
privilege to subordinate this Lease to future Lenders is conditioned upon
Landlord delivering to Tenant a fully executed and notarized Non-Disturbance
Agreement, in substantially the form annexed hereto as Schedule C, from any future Lender

 

(c)           Tenant agrees, upon
demand, without cost, to execute instruments as may be reasonably required to
further effectuate or confirm such subordination, any such Lender, Landlord and
Tenant shall have entered into a Non-Disturbance Agreement, which shall provide

 

26

 

to
Tenant the benefits described in this Article 8:01. Except as expressly provided
in this Lease by reason of the occurrence of a Tenant default, beyond
applicable notice, grace and cure periods, Tenant’s tenancy and Tenant’s rights
under this Lease shall not be disturbed, terminated or otherwise adversely
affected, nor shall this Lease be affected, by any default or otherwise under
any Mortgage, and in the event of a foreclosure or other enforcement of any
Mortgage, or sale in lieu thereof, the purchaser at such foreclosure sale shall
be bound to Tenant for the Term of this Lease and any Extension Term, the
rights of Tenant under this Lease shall expressly survive, and this Lease shall
in all respects continue in full force and effect so long as no Tenant default
has occurred and is continuing beyond applicable notice, grace and cure
periods. Tenant shall not be named as a party defendant in any such foreclosure
suit, except as may be required by Law.

 

(d)           At any time prior to
the expiration of the Lease Term, Tenant agrees, at the election-and upon demand of any
Landlord of the Demised Premises, or of a Lender who has executed and delivered
a Non-Disturbance Agreement for Tenant’s benefit pursuant to Paragraph 8.01(a) or
(b) above, to attorn, from time to time, to any such Landlord or Lender,
upon the terms and conditions of this Lease, for the remainder of the Term. The
provisions of this Paragraph 8.01(d) shall inure to the benefit of any
such Landlord or Lender, shall apply notwithstanding that, as a matter of law,
this Lease may terminate upon the foreclosure of the Mortgage so long as a new
lease is entered into between Tenant and the holder of such Mortgage on the
same remaining terms and conditions as this Lease, shall be self-operative upon
any such demand, and no further instrument shall be required to give effect to
said provisions.

 

(e)           Landlord hereby
represents that the only existing Lender is TD BankNorth.

 

8.02         ESTOPPELS   
(a)   Within twenty (20)
days after request therefor by Landlord, Tenant agrees to deliver a
certification, in recordable form (“Tenant’s Estoppel”), certifying that this Lease
is unmodified and in full force and effect (or if there shall have been
modifications that the same is in full force and effect as modified and stating
the modifications) and’ the dates to which the Base Rent, additional rent and
other charges have been paid in advance, if any, and stating whether or not, to
the best knowledge of the signer of such certificate, Tenant is in default in
the performance of any covenant, agreement or condition contained in this
Lease, beyond applicable notice, grace and cure periods, and, if so, specifying
each such defaults of which the signer may have knowledge, and any other
information reasonably requested by Landlord, it being intended that any such
statement delivered pursuant to this Section may be relied upon by any
proposed mortgagee or purchaser.

 

(b)           Within twenty (20)
days after request therefor by Tenant, Landlord agrees to deliver to Tenant a
statement (the “Landlord Estoppel”) in writing certifying that this Lease is
unmodified and in full force and effect (or if there shall have been
modifications that the same is in full force and effect as modified and stating
the modifications) and the dates to which the Base Rent, additional rent and
other charges have been paid in advance, if any, and stating whether or not, to
the best knowledge of the signer of such certificate, Tenant is in default in
the performance of any covenant, agreement or condition contained in this
Lease, beyond applicable notice, grace and cure periods, and, if so, specifying
each such default of which the signer may have knowledge, and any other
information reasonably requested by Tenant, it being intended

 

27

 

that
any such statement delivered pursuant to this Section may be relied upon
by any prospective lender, assignee or subtenant of Tenant’s interest in this
Lease.

 

ARTICLE IX

 

9.01         RESTORATION    (a) Tenant must give
Landlord prompt notice of fire, accident, damage or dangerous or defective
condition at the Demised Premises to the extent known. If the entire Demised
Premises cannot be used because of fire or other casualty, Tenant is not required
to pay rent from the time the Demised Premises first became unusable until ten (10) days
after Landlord notifies Tenant of substantial completion of Landlord’s restoration
work. If only part of the Demised Premises cannot be used, Tenant must pay rent
for the usable portion. Should Landlord opt to rebuild as provided for in
paragraph (b) of this section, Landlord need only repair the damaged structural
parts of the Demised Premises. Landlord is not required to repair or replace
any equipment, fixtures, furnishings or decorations. Landlord is not
responsible for delays due to settling insurance claims, obtaining estimates,
labor and supply problems or any other cause not fully under Landlord’s
control, so long as Landlord uses diligent efforts with regard to same.

 

(b)           Within thirty (30)
days after the date of such casualty, Landlord shall reasonably determine
whether the repair and restoration of the Building will take in excess of one hundred
eighty (180) days. If the repair or restoration of the Building will take in
excess of one hundred eighty (180) days, then either party shall have the right
to terminate this Lease upon notice given within thirty (30) days of Landlord’s
determination, in which event the Lease shall terminate thirty (30) days after
such notice and Landlord shall promptly deliver to Tenant any prepaid rent and
security deposited with Landlord hereunder. Notwithstanding anything to the
contrary contained in this Lease, if the Demised Premises is damaged or
destroyed by fire or any casualty which cannot, despite diligent, good faith
efforts be repaired or restored within one hundred eighty (180) days following
the date on which such damage occurs, then Tenant may elect to terminate this
Lease upon at least thirty (30) days prior written notice and Landlord shall promptly
deliver to Tenant any prepaid rent and security deposited with Landlord
hereunder. In addition, if Tenant does not have the right to terminate as
aforesaid, then, if the Building and/or Demised Premises is not actually repaired
and restored within two hundred ten (210) days from the date of such casualty,
Tenant may cancel this Lease at any time before Landlord completes the repairs
to the Building and delivers the restored Demised Premises to Tenant and in
such event, Lander shall promptly deliver to Tenant any prepaid rent and
security deposited with Landlord hereunder. Furthermore, Tenant shall have the
right to terminate this Lease in the event of any casualty affecting the
Building and/or the Demised Premises, which occurs during the last two (2) years
of the term of this Lease and, in such event, Landlord shall promptly deliver
to Tenant any prepaid rent and security deposited with Landlord hereunder. This
section is intended to replace the terms of New York Real Property Law Section 227.

 

(c)           Tenant shall have no
entitlement or right to any insurance proceeds payable to Landlord as a result
of damage to the Building.

 

(d)           Tenant shall have no
claim against Landlord for the value of any unexpired term of

 

28

 

this
Lease in the event of damage to the Building.

 

(e)           Whether destruction
is partial or total, Tenant shall, upon reasonable prior notice, remove its
moveable stock, fixtures and equipment to facilitate Landlord’s restoration.

 

9.02         EMINENT DOMAIN    (a) If the
whole of the Demised Premises shall be acquired or condemned by Eminent Domain
or otherwise for any public or quasi-public use or purpose, then and in that
event, the term of this Lease shall cease and terminate upon the date of title
vesting in such proceeding.

 

(b)           If part of the
Demised Premises shall be acquired or condemned by Eminent Domain or otherwise
for any public or quasi-public use, the Base Rent and additional rent to be
paid hereunder shall be apportioned on the basis of the floor area so taken. In
the event such partial taking shall exceed fifty (50.0%) percent of Tenant’s
floor area, this Lease may be cancelled by either party upon the giving of five
(5) days notice within thirty (30) days from the date title shall vest in
the condemning authority. If less than fifty percent (50%) of Tenant’s floor
area is taken, but such taking affects Tenant’s access to, ingress and/or
egress or otherwise adversely affects Tenant’s use and occupancy of the Demised
Premises, as determined in Tenant’s sole and absolute discretion, then Tenant
shall have the right to terminate this Lease upon notice to Landlord and
Landlord shall promptly refund to Tenant any prepaid rent and the security
deposit then held by Landlord.

 

(c)           In no event shall
Tenant have a claim for or be entitled to the value of any unexpired term of
this Lease, nor otherwise be entitled to any part of the award paid for such
condemnation and Landlord is to receive the full amount of such award, Tenant
hereby expressly waiving any right or claim to any part thereof. Nothing
contained herein shall be deemed to prevent Tenant from making a claim in any
condemnation proceedings for the cost of Tenant’s move and the unamortized cost
of Tenant’s leasehold improvements; provided that such claim does not diminish
Landlord’s award

 

ARTICLE X

 

10.01       SIGNAGE    (a) Landlord has not conveyed to
Tenant any rights in or to the outside walls of the Building of which the
Demised Premises form a part, and Tenant shall not display or erect any awnings
or other projections or do any boring, or cutting or stringing of wires, or
make any alterations, decorations, additions or improvements in or to the
Demised Premises, or in or to the Building, without the prior written consent
of Landlord, which consent shall not be unreasonably withheld, conditioned or
delayed. Notwithstanding the foregoing, Tenant shall have the right to make
interior decorative, non-structural alterations, additions or improvements
without Landlord’s consent. Anything to the contrary herein notwithstanding,
Tenant, at Tenant’s expense, shall have the right to erect two (2) signs
on the exterior of the Building, which may be projecting and/or fascia signs
(“Signs”).

 

(b)           Signs shall comply
with all rules and regulations of any governing authorities having
jurisdiction thereof, including the obtaining of permits or renewal of same.

 

29

 

(c)           Signs shall not
interfere with the signs of any other tenant in the Building existing as of the
date hereof, or block any windows of the Building.

 

(d)           Signs shall be
erected only in such place as shall be reasonably designated by Landlord and such
manner as prescribed in the Tenant’s plans and specifications as approved by
Landlord’s architect, or as approved in writing by Landlord, in either case,
which approval shall not be unreasonably withheld, conditioned or delayed.

 

(e)           Tenant shall remove
the Signs and re-install at Landlord’s expense or, at Tenant’s election, replace
the Signs, at Tenant’s expense, if required to facilitate Building maintenance
pursuant to local laws.

 

(f)            Tenant shall remove
the Signs, at Tenant’s expense, at or prior to the termination of its tenancy,
without damage to the Building and shall restore the Building to its condition
before installation of Signs to the extent reasonably possible, reasonable wear
and tear excepted.

 

10.02       SECURITY GATES    Tenant may, at Tenant’s cost and
expense, have an interior, mesh-type security gate installed within the
storefront of the Demised Premises. Said security gate shall be installed
without damage to the Building and shall be erected only in such place and in
such manner as prescribed in the plans and specifications approved by Landlord
or Landlord’s architect, which approval shall not be unreasonably withheld
conditioned or delayed.

 

ARTICLE XI

 

11.01       LANDLORD’S COVENANT OF QUIET ENJOYMENT    Landlord covenants that, upon Tenant paying
the rent and additional rent, and observing and performing all the terms,
covenants and conditions on Tenant’s part to be observed and performed, prior
to the expiration of any applicable notice, grace and cure periods, Tenant may
peaceably and quietly enjoy the premises hereby demised subject, nevertheless,
to the terms and conditions of this Lease, and to any ground Leases underlying
the Lease and mortgages herein mentioned or provided for. In any event, Tenant
shall have the right to use and access the Demised Premises
twenty-four hours per day, seven days per week.

 

11.02      NO WASTE    Tenant shall not commit or suffer to be
committed any waste upon the Demised Premises, or any nuisance or other act or
thing which may unreasonably disturb the quiet enjoyment of any other tenant in
the Building.

 

11.03      SURRENDER    Anything herein to the contrary
notwithstanding, upon the termination of this Lease and vacating of the Demised
Premises, Tenant agrees to leave the Demised Premises broom clean and in good
repair, excepting reasonable wear and tear and damage by casualty as permitted
herein. The Tenant shall remove its moveable trade fixtures and all of its
property at the termination of the term of this Lease, or same shall be deemed
abandonment of such property and removed by Landlord at the reasonable expense
of Tenant.

 

11.04      HOLDOVER   
Any holding over, after the expiration of the term hereof, or

 

30

 

an Extension Term, without the consent of Landlord, shall be deemed to be
a tenancy from month to month at a rate equal to 125% of the Base Rent then in
effect, plus additional rent. Nothing contained herein shall be construed as
authorization, or consent for Tenant to hold over beyond the expiration of the
term of this Lease.

 

11.05                     BROKER    Tenant
represents that it has not dealt with any broker in regard to the Demised
Premises, or to bring about this Lease, except for Transwestern and Colliers
ABR, Inc. Landlord represents that it has not dealt with any broker in
regard to the Demised Premises, or to bring about this Lease, except for G.E.
Grace & Company, Inc. (“Landlord’s Broker”) and Landlord agrees to pay
G.E. Grace & Company, Inc., Colliers ABR, Inc. and Transwestern
pursuant to a Commission Agreement dated September 22, 2008 by and between
Landlord and G.E. Grace & Company, Inc. Tenant acknowledges that
a claim has been made against it by First New York Realty Co., Inc. for
commissions alleged to be due as a result of dealings with Tenant in regard to
the Demised Premises. Tenant acknowledges that neither Landlord nor G.E. Grace &
Company, Inc. were aware, or had reason to be aware, of Tenant’s dealings,
if any, with First New York Realty Co., Inc. in regard to the Demised
Premises. Tenant agrees to indemnify, save, protect, defend (including costs of
defense) and hold harmless Landlord and G.E. Grace & Company, Inc.
from any claim for commission or compensation sought by First New York Realty
Co., Inc., and any other broker, other than Landlord’s Broker, Colliers
ABR, Inc. and Transwestern, in connection herewith and with whom Tenant
has dealt. Landlord agrees to be defended by counsel of Tenant’s choice,
provided that all costs of defense are paid by Tenants ab
initio. Landlord agrees to
indemnify, save and protect and hold harmless Tenant from any claim for
commission or compensation sought by Landlord’s Broker, Colliers ABR Inc. and
Transwestern or any other broker with whom Landlord has dealt, in connection
herewith.

 

11.06                     COVENANTS    The
provisions of this Lease are to be construed as covenants and all the
provisions hereof shall bind and inure to the benefit of the parties hereto and
their respective heirs, executors, administrators, successors and assigns.

 

11.07                     NOTICES    All
notices, consents, approvals, demands, requests and other communications
(collectively, “notices” and individually, a “notice”) which are
required or desired to be given by either party to the other shall be in
writing. All notices by either party to the other shall be sent by United
States registered or certified mail, return receipt requested, postage prepaid,
or by overnight mail, addressed to the other party at its address set forth
below, or personally delivered (with receipt acknowledged) to such address or
at such other address as it may from time to time designate in a notice to the
other party. All notices to Tenant shall be sent to Tenant, at the addresses
provided below. Notices which are given to Tenant or Tenant in the manner
aforesaid shall be deemed to have been given or served for all purposes
hereunder on (i) the third business day following the date on which such
notice was put into the mail, if sent by United States registered or certified
mail, return receipt requested, postage prepaid, (ii) the next business
day following the date such notice was sent, if sent by overnight mail, and (iii) the
business date such notice shall have been personally delivered or refused if
sent by personal delivery.

 

	
  If
  to Landlord:

  	
   

  	
  Kam
  Hing Realty-NYC, LLC

  
	
   

  	
   

  	
  Attention:
  Arthur Courbanou

  

 

31

 

	
   

  	
   

  	
  308
  Fifth Avenue

  
	
   

  	
   

  	
  New
  York, New York 10001

  
	
   

  	
   

  	
   

  
	
  With
  a copy to:

  	
   

  	
  Zraick,
  Nahas & Rich, Esqs. 

  
	
   

  	
   

  	
  303
  Fifth Avenue, Suite 1201 

  
	
   

  	
   

  	
  New
  York, New York 10016-6695 

  
	
   

  	
   

  	
  Attention:
  Robert Paul Rich, Esq.

  
	
   

  	
   

  	
   

  
	
  If
  to Tenant:

  	
   

  	
  Prior
  to the Commencement Date:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wilshire
  State Bank

  
	
   

  	
   

  	
  Attention:
  Regional Manager 

  
	
   

  	
   

  	
  11
  West 32nd Street

  
	
   

  	
   

  	
  New
  York, New York 10001

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  After
  the Commencement Date:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wilshire
  State Bank

  
	
   

  	
   

  	
  Attention:
  Regional Manager

  
	
   

  	
   

  	
  308
  Fifth Avenue

  
	
   

  	
   

  	
  New
  York, New York 10001

  
	
  with
  copies to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wilshire
  State Bank

  
	
   

  	
   

  	
  3200
  Wilshire Blvd., 7th Floor

  
	
   

  	
   

  	
  Los
  Angeles, CA 90010

  
	
   

  	
   

  	
  Attention:
  Chief Operations Administrator

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
  Pryor
  Cashman LLP

  
	
   

  	
   

  	
  7
  Times Square, 3rd Floor

  
	
   

  	
   

  	
  New
  York, New York 10036-6569

  
	
   

  	
   

  	
  Attn:
  Ronald B. Kremnitzer, Esq.

  

 

11.08                CAPTIONS    The
captions and article numbers, marginal notes and index appearing in this Lease
are inserted only as a matter of convenience, and in no way define, limit,
describe or affect the scope or intent of this Lease.

 

11.09                DEFINITIONS    (a) The term “Landlord” as
used in this Lease means only the Landlord or the mortgagee in possession for
the time being of the land and Building (or the Landlord of the Lease of the
Building, or of the land and Building) of which the Demised Premises form a
part, so that in the event of any sale or sales of said land and Building or of
said Lease, or in the event of a Lease of said Building, or the land and
Building, Landlord as named in this Lease shall be and hereby is entirely freed
and relieved of all covenants and obligations of Landlord hereunder. It shall
be deemed and construed, without further agreement between the parties or their
successors-in-interest, that the purchaser or the lessee of the Building has
assumed and agrees to carry out any and all covenants and obligations of
Landlord hereunder

 

32

 

including,
but not limited to, the obligations in connection with the security deposited
by Tenant hereunder. The words “re-enter” and “re-entry” as used in this Lease
are not restricted to their technical legal meaning.

 

(b) The use of the
neuter singular pronoun to refer to Landlord or Tenant shall, nevertheless, be
deemed a proper reference even though Landlord and/or Tenant may be an
individual, a corporation, a partnership or a group of two or more individuals
or corporations.

 

11.10                    DUE
AUTHORIZATION    The parties each
respectively represent and warrant that it is (i) in good standing in its state
of formation, (ii) qualified to conduct business in the State of New York
and (iii) has been duly authorized to enter into this Lease pursuant to
its terms.

 

11.11                    RECORDING    Tenant
covenants not to place this Lease or any memorandum of this Lease on record
without the prior written consent of Landlord.

 

11.12                    INVALIDITY
OF PARTICULAR PROVISIONS    If any term or
provision of this Lease, or the application thereof to- any person or circumstance, shall, to any
extent, be invalid or unenforceable, then the remainder of this Lease, or the
application of such term or provision to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected
thereby and each term and provision of this Lease shall be valid and be
enforced to the fullest extent permitted by law.

 

11.13                    ENTIRE
AGREEMENT    This Lease
contains the entire agreement between the parties, and any agreement hereafter
made shall be ineffective to change, modify, discharge or effect an abandonment
of it in whole or in part unless such agreement is in writing and signed by the
party against whom enforcement of the change, modification, discharge or
abandonment is sought.

 

11.14                    ATTORNEYS’
FEES AND COSTS:    If either party
hereto is made or otherwise becomes a party to any litigation commenced by or
against the other party involving the enforcement of any of the rights and
remedies of such party, or arising on account of the default of the other party
in the performance of such party’s obligations hereunder, after any applicable
notice, grace and cure periods, then the prevailing party in any such
litigation shall receive from the other party all reasonable costs and
attorneys’ fees and disbursements incurred by such party.

 

11.15                   MUTUAL WAIVER:    Landlord and
Tenant, as between themselves, hereby waive the right to seek or collect
punitive or consequential damages.

 

11.16                   WAIVER OF LANDLORD’S LIEN:    Landlord hereby
expressly waives any lien, right of distraint or related or similar rights now
or hereafter granted to Landlord by statute, or otherwise, with respect to
Tenant’s personal property, trade fixtures, inventory, or stock-in-trade in or
on the Demised Premises for non-payment of rent, default by Tenant, or any
other reason whatsoever; to the extent a waiver of any lien is unenforceable,
Landlord hereby subordinates such lien to the lien of any holder of
indebtedness of Tenant.

 

33

 

ARTICLE XII

 

12.01                     HAZARDOUS MATERIALS    (a) Landlord
warrants and represents that, to the Landlord’s knowledge without expert
inspection, there are no Hazardous Materials (as defined below) in the Demised
Premises or the Building systems serving same. Landlord covenants and agrees to
comply with Environmental Laws (as defined below). The term “Hazardous
Materials” means friable asbestos and friable asbestos-containing material; any
chemical, material or substance at any time defined as or included in the
definition of “hazardous substances”, “hazardous wastes”, hazardous materials”,
“extremely hazardous waste”, “biohazardous waste”, “pollutant”, “toxic
pollutant”, “contaminant”, “restricted hazardous waste”, “acutely hazardous
waste”, “radioactive waste”, “infectious waste”, “toxic substances”, or any
other term or expression intended to define, list or classify substances by
reason of properties harmful to health, safety or the indoor or outdoor
environment (including harmful properties such as ignitability, corrosivity,
reactivity, carcinogenicity, toxicity or words of similar import) under any
Legal Requirement; any oil, petroleum, petroleum fraction or petroleum derived
substance; mercury; urea formaldehyde foam insulation; electrical equipment which
contains any oil or dielectric fluid containing polychlorinated biphenyls;
provided, however, that such term shall not be deemed to include (a) limited
quantities of substances typically used and reasonably necessary for the
ordinary operation and maintenance of the Building and Building systems serving
the Demised Premises, so long as such substances are used, transported, stored
and handled in accordance with all Environmental Laws; or (b) oil, petroleum,
petroleum fractions or petroleum derived substances used for purposes of
heating or providing emergency power for the Building. “Environmental Laws”
means all applicable Federal, State and local laws, statutes, ordinances,
permits, orders, decrees, guidelines, rules, regulations and orders pertaining
to health or the environment (“Environmental Laws”), including, without
limitation, the Comprehensive Environmental Response, Compensation and
Liability Act of 1980 (“CERCLA”) and the Resource Conservation and Recovery Act
(“RCRA”), as each of the foregoing have been amended and may be amended from
time to time. “Abatement Work” shall be defined as the removal of any and all Hazardous
Materials and the delivery to Tenant of a clearance certificate from the
applicable governmental jurisdiction (or, if no governmental jurisdiction
issues such certificate, then from a licensed environmental hygienist)
certifying the complete removal thereof.

 

(b) If Hazardous Materials
are discovered in the Demised Premises or Building systems serving the Demised
Premises at any time during the Lease Term hereof, then, at Tenant’s request,
Landlord shall, at its sole cost and expense, promptly perform all Abatement
Work and repair or replace all improvements damaged by the Abatement Work. Base
Rent and additional rent shall abate from the date on which the Hazardous
Materials are discovered and Tenant has ceased conducting business from the
affected portion(s) of the Demised Premises until the date on which the
Abatement Work is complete and all damaged improvements are repaired or
replaced to the extent that Tenant may reoccupy the entire Demised Premises for
the conduct of Tenant’s business. Any such abatement of Base Rent and
additional rent shall be in proportion to the square footage of the affected
portion(s) as against the square footage of the

 

34

 

useable
portion(s) of the Demised Premises. 
Landlord shall be solely responsible for and shall comply with all legal
requirements with respect to Hazardous Materials in the Demised Premises,
provided that such Hazardous Materials were not installed thereon by Tenant or
Tenant’s employees or contractors.

 

ARTICLE XIII

 

13.01                     RULES AND REGULATIONS    Tenant
covenants and agrees with Landlord to obey, in all respects, the following rules and
regulations:

 

(1)                                  The delivery,
shipping, loading or unloading of merchandise, supplies and fixtures to and
from the Demised Premises shall be subject to such rules and regulations
as in the reasonable judgment of Landlord are reasonably necessary for the
proper operation of the Building, so long as same does not interfere with the
conduct of Tenant’s business, use, occupancy or access to the Premises;

 

(2)                                  No aerial,
antennae, satellite dish or microwave facility shall be erected on the roof or
exterior walls of the Building, or on the grounds, without obtaining the prior
written consent of Landlord in each instance, which consent shall not be
unreasonably withheld, conditioned or delayed. Any aerial, antennae, satellite
dish or microwave facility so installed without such written consent shall be
subject to removal without notice at any time;

 

(3)                                  No
loudspeakers, televisions, phonographs, radios or other devices shall be used
in a manner so as to be heard outside of the Demised Premises without the prior
written consent of Landlord;

 

(4)                                  Tenant shall
keep the Demised Premises at a temperature sufficiently high to prevent
freezing of water in pipes and fixtures;

 

(5)                                  The plumbing
facilities shall not be used for any other purposes than that for which they
are constructed, and no foreign substance of any kind shall be thrown therein;

 

(6)                                  Tenant shall
not burn any trash or garbage of any kind in or about the Building;

 

(7)                                  No auction,
fire, bankruptcy, selling out sales, or sidewalk sales shall be conducted on or
about the Demised Premises without prior written consent of Landlord;

 

(8)                                  Intentionally
Omitted.

 

(9)                                  Tenant shall
not permit any unlawful or immoral practice or business to be carried on or
committed upon the Demised Premises;

 

(10)                            Tenant shall
not use the Demised Premises for any purpose or in any manner

 

35

 

whatsoever
which create a nuisance or injure the reputation of the Building or Landlord;

 

(11)         Tenant shall not bring, or permit to be brought or kept in
or on the Demised Premises, any inflammable, combustible or explosive fluid,
material, chemical or substance, except limited amounts in compliance with
applicable laws, or cause or permit any odors of cooking or other processes, or
any unusual or other objectionable odors to unreasonably permeate in or emanate
from the Demised Premises;

 

(12)                           Tenant shall
maintain the Demised Premises free of vermin, insects, and rodents, and shall
provide for exterminating services to the Demised Premises as needed;

 

(13)                          Tenant agrees
to keep the store front and sidewalk adjacent thereto and up to 18 inches into
the street abutting the sidewalk clear and free from any debris and litter,
snow and ice, and graffiti. Tenant shall sweep and maintain in clean condition
the sidewalk in front of the Demised Premises;

 

(14)         Tenant shall operate the Demised Premises during the term of
this Lease with due diligence and efficiency, unless prevented from doing so by
cause beyond Tenant’s reasonable control.

 

(15)         Tenant shall comply with all further reasonable rules and
regulations for the use and occupancy of the Building as Landlord from time to
time reasonably promulgates for the best interests of the Building. If Tenant
disputes the reasonableness of any future rule or regulation, Tenant shall
so notify Landlord within ninety (90) days after the promulgation thereof, and
the dispute shall be settled by arbitration by and in accordance with the rules then
existing of the American Arbitration Association. Landlord shall have no
liability for the violation of any rules or regulations by any other
tenant (unless such other tenant is Landlord or any of its affiliates), nor
shall such violation, or the waiver thereof, excuse Tenant from compliance. All
rules and regulations shall be enforced non-discriminately as to all tenants in
the Building.

 

Signature Page Follows

 

36

 

IN WITNESS WHEREOF, Landlord and
Tenant have duly signed and sealed this Lease as of the day and year first
above written.

 

 

	
  Witness
  for Landlord:

  	
   

  	
   

  	
  Landlord

  
	
   

  	
   

  	
   

  	
  KAM HING REALTY-NYC, LLC

  
	
   

  	
   

  	
  By

  	
  Kam Hing Enterprises, Inc.,
  Member

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  [ILLEGIBLE] 

  	
   

  	
  By

  	
  /s/ Howard Yung

  
	
   

  	
   

  	
   

  	
  Howard
  Yung, President

  
	
   

  	
   

  	
   

  	
   

  
	
  Witness
  for Tenant:

  	
   

  	
   

  	
  Tenant

  WILSHIRE STATE BANK

  
	
  /s/
  [ILLEGIBLE] 

  	
   

  	
  By

  	
  /s/
  David Kim

  
	
   

  	
   

  	
   

  	
  David
  Kim, Officer

  
	
   

  	
   

  	
   

  	
   

  

 

ACKNOWLEDGEMENT
PAGE FOLLOWS

 

37

 

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

 

State
of California

 

County
of Log Angeles

 

	
  On 

  	
  July 31, 2009 

  	
   before me,

  	
  Katie Hahn, Notary Public

  	
  ,

  
	
   

  	
  Date

  	
   

  	
  Here Insert Name and Title of the Office

  	
   

  
	
  personally appeared

  	
  David kim

  	
   

  
	
   

  	
  Name(s) of Signer(s)

  	
   

  
	
   

  	
   

  	
  ,

  

who
proved to me on the basis of satisfactory evidence to be the person whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his authorized capacity, and that by his signature on the instrument
the person, or the entity upon behalf of which the person acted, executed the
instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of
California that the foregoing paragraph is true and correct.

 

	
  

  	
  WITNESS
  my hand and official seal.

  
	
   

  
	
   

  
	
   

  
	
  Signature

  	
  /s/ Katie Hahn

  
	
  Place Notary Seal Above

  	
   

  	
  Signature of Notary Public

  

 

OPTIONAL

 

Though the
information below is not required by law, it may prove valuable to persons
relying on the document and could prevent fraudulent removal and reattachment
of this form to another document.

 

Description of Attached Document

 

	
  Title or Type of Document:

  	
   

  
	
   

  	
   

  
	
  Document Date:

  	
   

  	
    Number of Pages:

  	
   

  
	
   

  	
   

  
	
  Signer(s) Other Than Narhed Above:

  	
   

  
						

 

Capacity(ies) Claimed by Signer(s)

 

	
  Signer’s
  Name:

  	
   

  	
   

  

 

 

o            Individual

o            Corporate Officer — Title(s):_________________________________________

o            Partner — o Limited o General

o            Attorney in Fact

o            Trustee

o            Guardian or Conservator

o            Other:

 

Signer Is Representing:

 

RIGHT THUMBPRINT OF
SIGNER

Top
of thumb here

 

 

	
  Signer’s
  Name:

  	
   

  	
   

  

 

o            Individual

o            Corporate Officer — Title(s):_________________________________________

o            Partner — o Limited o General

o            Attorney in Fact

o            Trustee

o            Guardian or Conservator

o            Other:

 

Signer Is Representing:

 

RIGHT THUMBPRINT
OF SIGNER

Top of thumb here

 

 

©2007 National Notary Association · 9350 De Soto Ave., P.O. Box 2402 · Chatsworth, CA 91313-2402 · www.NationalNotary.org
 Item #5907  Reorder: Call Toll-Free 1-800-876-6827

 

 

ACKNOWLEDGMENTS

 

	
  STATE OF NEW YORK

  	
  )

  
	
   

  	
  :ss.:

  
	
  COUNTY OF

  	
  )

  

 

On the day of August in the year 2009, before me, the undersigned,
personally appeared                                 ,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in
his/her/their capacities, and that by his/her/their signature(s) on the instrument,
the individual(s), or the person(s) upon behalf of which the individual(s) acted,
executed the instrument

 

 

	
   

  	
   

  
	
   

  	
  Notary
  Public

  

 

 

	
  STATE OF NEW YORK

  	
  )

  
	
   

  	
  :ss.:

  
	
  COUNTY
  OF NEW YORK

  	
  )

  

 

On the 3rd day of September in
the year 2009, before me, the undersigned, personally appeared Howard K. H. Yung, personally known to me
or proved to me on the basis of satisfactory evidence to be the individual(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their capacities, and that by his/her/their
signature(s) on the instrument, the individual(s), or the person(s) upon
behalf of which the individual(s) acted, executed the instrument

 

 

	
   

  	
  /s/ Robert Paul Rich

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
  ROBERT PAUL RICH

  
	
   

  	
   

  
	
   

  	
  Notary Public, State of
  New York

  
	
   

  	
  No. 02RI4746994

  
	
   

  	
  Qualified in Kings
  County

  
	
   

  	
  Commission Expires
  April 30, 2010

  

 

38

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule A-2

 

LANDLORD’S WORK

 

Prior to and as a condition of delivery of possession of the Demised
Premises to Tenant, Landlord agrees to complete the following work
(collectively, “Landlord’s Work”):

 

1.             Landlord shall remove and dispose
of all asbestos and/or asbestos containing materials on the Basement, Ground
floor and Second floor.  Landlord will
provide Tenant with ACP-5 certification.

 

2.             Electrical service to the Basement,
Ground floor and Second floor is to be separated from service to the balance of the
Building and separately metered for Tenant’s use. New electrical service shall
be in two (2) meters (one serving the ground floor and basement and the
other serving the second floor of the Demised Premises) each for Tenant’s
exclusive use.

 

3.             Landlord shall deliver, in good
working order, the HVAC unit(s) that serve the Demised Premises. Provided
that Tenant has obtained and kept continuously in force and effect a commercially
reasonable maintenance contract pertaining to the HVAC unit(s) and has undertaken
the manufacturer required periodic maintenance of the same throughout the Lease
Term, then Landlord shall repair and/or replace, as needed and at Landlord’s
sole cost the condenser, evaporator and/or compressor components of the HVAC
system.

 

 

	
  Witness
  for Landlord:

  	
   

  	
  Landlord

  
	
   

  	
   

  	
  KAM HING REALTY-NYC, LLC

  
	
   

  	
  By

  	
  Kam Hing Enterprises, Inc., Member

  
	
   

  	
   

  	
   

  
	
  /s/
  [ILLEGIBLE]

  	
   

  	
  By

  	
  /s/ Howard Yung

  
	
   

  	
   

  	
  Howard
  Yung, President

  
	
   

  	
   

  	
   

  
	
  Witness
  for Tenant:

  	
   

  	
  Tenant

  
	
   

  	
   

  	
  WILSHIRE
  STATE BANK,

  
	
   

  	
   

  	
   

  
	
  /s/
  [ILLEGIBLE]

  	
   

  	
  By

  	
  /s/ David Kim

  
	
   

  	
   

  	
  David Kim, Officer

  

 

40

 

Schedule B

 

SURRENDER DECLARATION

 

Pursuant to Section 2.13(a)(iii) of the Lease between
WILSHIRE STATE BANK (“Tenant”) and KAM HING REALTY-NYC, LLC (“Landlord”) dated
as of                     ,
2009, Tenant hereby surrenders the keys and possession of the ground floor,
second floor and basement (“Premises”) in the Building known as and by the
street address 308 Fifth Avenue York, New York 10001, to Landlord, effective
immediately.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WILSHIRE STATE BANK, Tenant

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  ,
  Officer, and

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  ,
  Officer

  

 

 

	
  Agreed
  to and Accepted as of this

  	
   

  
	
                   day
  of                                 ,
  2

  	
   

  
	
   

  	
   

  
	
  KAM HING REALTY-NYC, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Howard Yung, Member

  	
   

  

 

41

 

Schedule C

 

Form of Subordination, Non-Disturbance
Attornment Agreement

 

SUBORDINATION,
NON-DISTURBANCE AND ATTORNMENT AGREEMENT

 

THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (this “Agreement”)
is entered into by and among WILSHIRE STATE BANK (“Tenant”), whose address
is 3200 Wilshire Boulevard, 7th Floor, Los Angeles, CA 90010,
KAM HING REALTY-NYC, LLC (“Landlord”), whose address is 308 Fifth
Avenue, New York, New York 10001, and
                                 (
the “Lender”), whose address is                                                       .

 

W I T N E S S E T H :

 

WHEREAS, Landlord, or its successor or designee, is the owner in fee
simple of the real property described in Exhibit A attached hereto,
together with the improvements thereon (collectively, the “Property”);

 

WHEREAS, Landlord and Tenant have entered into a certain Lease (as the
same may have been or may hereafter be amended, modified, renewed, extended or
replaced, the “Lease”), dated                        ,
20                        ,
leasing to Tenant a portion of the Property (the “Premises”);

 

WHEREAS, Lender is the holder of that certain mortgage dated as of              and
recorded in                     on                  (the
“Mortgage”); the Mortgage encumbers, among
other things, the Property.

 

WHEREAS, Lender, Landlord
and Tenant desire to confirm their understanding with respect to the Lease and
the Mortgage and the rights of Tenant and the Lender thereunder.

 

NOW THEREFORE, in consideration of the mutual covenants and agreements
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.             Subordination. Notwithstanding anything to the
contrary set forth in the Lease, Tenant hereby subordinates and subjects the
Lease and the leasehold estate created thereby and all of Tenant’s rights
thereunder to the Mortgage and the liens thereof and all advances and rights of
the Lender thereunder and to any and all renewals, modifications,
consolidations, replacements and extensions thereof, as fully and as if the
Mortgage and all of its renewals, modifications, consolidations, replacements
and extensions had been executed, delivered and recorded prior to execution of
the Lease.

 

2.             Non-Disturbance. If, at any time, the Lender or
any person or entity or any of their successors or assigns who shall acquire
the interest of Landlord under the Lease through a foreclosure of the Mortgage,
the exercise of the power of sale under the Mortgage, a deed-in-lieu of
foreclosure, an assignment-in-lieu of foreclosure or otherwise (each, a “New
Owner”) shall succeed to the interests of Landlord under the Lease, so long
as the Lease is then in full force and

 

42

 

effect,
Tenant complies with this Agreement and no default , after notice and
expiration of applicable cure periods, on the part of Tenant (collectively, a “Default”)
exists under the Lease, the Lease shall continue in full force and effect as a
direct lease between the New Owner and Tenant, upon and subject to all of the
terms, covenants and conditions of the Lease, for the balance of the term
thereof. Tenant hereby agrees to attorn to and accept any such New Owner as
landlord under the Lease and to be bound by and perform all of the obligations
imposed by the Lease, and the Lender, or any such New Owner of the Property,
agrees that it will not disturb the possession of Tenant and will be bound by
all of the obligations imposed on the Landlord by the Lease; provided, however,
that any New Owner shall not be:

 

(a)            liable for any act or
omission of a prior landlord (including Landlord) arising prior to the date
upon which the New Owner shall succeed to the interests of Landlord under the
Lease, which, as to maintenance and repair obligations, shall not then be
continuing; or

 

(b)           subject to any claims,
offsets or defenses which Tenant might have against any prior landlord
(including Landlord) arising prior to the date upon which the New Owner shall
succeed to the interests of Landlord under the Lease which are not specifically
provided for in the Lease; or

 

(c)            except as permitted by the
Mortgage, bound by any rent or additional rent which Tenant might have paid in
advance to any prior landlord (including Landlord) for a period in excess of
one (1) month or by any security deposit, cleaning deposit or other
prepaid charge which Tenant might have paid in advance to any prior landlord,
(including Landlord), except to the extent that such New Owner actually comes into
exclusive possession of the same; or

 

(d)           bound by any assignment
(except as permitted by the Lease), surrender, release, waiver, cancellation,
amendment or modification of the Lease made without the written consent of the
Lender; or

 

(e)            responsible for the making
of any improvement to the Property or repairs in or to the Property in the case
of damage or destruction of the Property or any part thereof due to fire or
other casualty or by reason of condemnation unless such New Owner shall be
obligated under the Lease to make such repairs and shall have received
insurance proceeds or condemnation awards sufficient to finance the completion
of such repairs; or

 

(f)            obligated to make any
payment to Tenant except for the timely return of any security deposit or
pre-paid rent (but not more than one month in advance) actually received by
such New Owner.

 

Nothing contained herein
shall prevent the Lender from naming or joining Tenant in any foreclosure or
other action or proceeding initiated by the Lender pursuant to the Mortgage to
the extent necessary under applicable law in order for the Lender to avail
itself of and complete the foreclosure or other remedy, but such naming or
joinder shall not be in derogation of the rights of Tenant as set forth in this
Agreement.

 

3.            Payments to Lender and
Exculpation of Tenant. Tenant is hereby notified that the Lease
and the rent and all other sums due thereunder have been collaterally assigned
to the Lender.  In the event that the
Lender or any future party to whom the Lender may assign the

 

43

 

Mortgage
notifies Tenant of a default under the Mortgage and directs that Tenant pay its
rent and all other sums due under the Lease to the Lender or to such assignee,
Tenant shall honor such direction without inquiry and pay its rent and all
other sums due under the Lease in accordance with such notice. Landlord agrees
that Tenant shall have the right to rely on any such notice from the Lender or
any such assignee without incurring any obligation or liability to Landlord,
and Tenant is hereby instructed to disregard any notice to the contrary
received from Landlord or any third party.

 

4.             Attornment. If the
interest of Landlord under the Lease shall be transferred by reason of foreclosure
or other proceedings for enforcement of the Mortgage and the obligations
secured thereby or pursuant to a taking of a deed in lieu of foreclosure (or
similar device), Tenant shall be bound to the successor and, except as
otherwise provided in this Agreement, the successor shall be bound to Tenant
under all of the terms, covenants and conditions of the Lease, for the
unexpired balance of the term thereof remaining (and any extensions, if
exercised), with the same force and effect as if the successor were the
landlord, and Tenant does hereby (a) agree to attorn to the successor,
including the Lender, if it is the successor, as its landlord, (b) to
ratify and reaffirm its obligations under the Lease and (c) agree to make
payments of all sums due under the Lease to the successor, said attornment,
ratification, reaffirmation and agreement to be effective and self-operative without
the execution of any further instruments, upon the successor succeeding to the
interest of Landlord under the Lease and notice of such succession being given
to the Tenant in the manner set forth in Section 7 of this Agreement.
Tenant waives the provisions of any statute or rule of law now or
hereafter in effect that may give or purport to give it any right or election
to terminate or otherwise adversely affect the Lease or the obligations of
Tenant thereunder by reason of any foreclosure or other proceedings for
enforcement of the Mortgage or the taking of a deed in lieu of foreclosure (or
similar device).

 

5.             Notice. Any notice, demand,
statement, request, consent or other communication made hereunder shall be in
writing and shall be validly given or made if (i) delivered by hand, (ii) deposited
in the United States mail, certified or registered, postage prepaid, return
receipt requested, or (iii) delivered by a nationally recognized next day
delivery courier service, and service shall be deemed given the first business
day delivery is attempted. Notices to Tenant and Landlord shall be addressed in
accordance with Section 11.07 of the Lease. Notices to Lender shall be addressed
to the address set forth in the preamble hereto. Any party may change its
address for the purpose of receiving notices or demands as herein provided by a
written notice given in the manner aforesaid to the other party hereto, which
notice of change of address shall not become effective, however, until the
actual receipt thereof by the other party or delivery is refused.

 

6.             Miscellaneous.

 

(a)            In the event of any conflict
or inconsistency between the provisions of this Agreement and the Lease, the
provisions of this Agreement shall govern; provided, however, that the
foregoing shall in no way diminish Landlord’s obligations or liability to
Tenant under the Lease. The Lender’s enforcement of any provisions of this
Agreement or the Mortgage shall not entitle Tenant to claim any interference
with the contractual relations between Landlord and Tenant or give rise to any
claim or defense against any Lender or the Lender with respect to the
enforcement of such provisions.

 

44

 

(b)           Tenant agrees that this, Agreement
satisfies any condition or requirement in the Lease relating to the granting of
a non-disturbance agreement pursuant to the Lease.

 

(c)           This Agreement shall inure
to the benefit of the parties hereto and their respective successors and
assigns; provided, however, that the interest of Tenant under this Agreement
may not be assigned or transferred without the prior written consent of the
Lender.

 

(d)           The captions appearing under
the paragraph number designations of this Agreement are for convenience only
and are not a part of this Agreement and do not in any way limit or amplify the
terms and provisions of this Agreement.

 

(e)            If any portion or portions
of this Agreement shall be held invalid or inoperative, then all of the
remaining portions shall remain in full force and effect, and, so far as is
reasonable and possible, effect shall be given to the intent manifested by the
portion or portions held to be invalid or inoperative.

 

(f)            This Agreement shall be
governed by and construed in accordance with the laws of the State in which the
Property is located.

 

(g)           This Agreement may be
executed in any number of separate counterparts, each of which shall be deemed
an original, but all of which, collectively and separately, shall constitute
one and the same agreement.

 

(h)           This Agreement cannot be
altered, modified, amended, waived, extended, changed, discharged or terminated
orally or by any act on the part of Tenant, Landlord or the Lender, but only by
an agreement in writing signed by the party against whom enforcement of any
alteration, modification, amendment, waiver, extension, change, discharge or
termination is sought.

 

[SEE ATTACHED SIGNATURE PAGES]

 

45

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the
dates set forth adjacent to their signatures below to be effective as of the
date of the Mortgage.

 

 

	
  TENANT:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
			

 

 

	
  LANDLORD:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
			

 

 

	
  LENDER:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
			

 

46

 

EXHIBIT A

 

PROPERTY DESCRIPTION

 

47

 

REGAL TITLE AGENCY as agent
for

LAWYERS TITLE INSURANCE CORPORATION

 

Title Number: REM-01-25224

 

SCHEDULE A CONTINUATION

 

BLOCK 833 LOT 42 ON THE TAX MAP OF NEW YORK COUNTY

 

ALL that certain plot, piece or parcel of land, with
the buildings and improvements thereon erected, situate, lying and being in the
Borough of Manhattan, County, City and State of New York, bounded and described
as follows:

 

BEGINNING at a point on the westerly side of 5th
Avenue, distant 74 feet 3/4 inches northerly from the point of intersection of
said line with the northerly side of West 31st Street;

 

thence westerly parallel with West 31st Street, 100
feet;

 

thence northerly parallel with 5th Avenue, 24 feet
8-1/4 inches;

 

thence easterly along the center line of the block
100 feet to the westerly side of 5th Avenue;

 

thence southerly along the westerly side of 5th
Avenue, 24 feet 8-1/4 inches to the point or place of BEGINNING.

 

 

	
  ALTA
  OWNER’S POLICY

  	
   

  

 

2

 

SCHEDULE D

 

Tenant’s Plans-

(6 pages)

 

First
Floor Demolition / Construction Plan

First
Floor Furniture / Elect / Tel. Plan

Second
Floor Demolition / Construction Plan

Second
Floor Furniture / Elect / Tel. Plan

Basement
Demolition / Construction Plan

Basement
Furniture / Elect / Tel. Plan

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]