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EXHIBIT 10.9    
  

 
 

Office Lease Between 9320 Wilshire Associates and Pacific
  Crest Bank, dated May 16, 2001 (Beverly Hills Branch)    
  

OFFICE LEASE  

 9320 WILSHIRE ASSOCIATES, LLC,  

 a California limited liability company,  

 as Landlord,  

 and  

 PACIFIC CREST BANK,  

 a California corporation,  

 as Tenant.  

 
TABLE OF CONTENTS  

	 
	 	 
	 	Page

	1.	 	REAL PROPERTY, BUILDING AND PREMISES	 	3
	2.	 	INITIAL LEASE TERM; OPTION TERM; TENANT TERMINATION RIGHT	 	3
	3.	 	BASE RENT	 	5
	4.	 	ADDITIONAL RENT	 	6
	5.	 	USE OF PREMISES	 	12
	6.	 	SERVICES AND UTILITIES	 	15
	7.	 	REPAIRS	 	17
	8.	 	ADDITIONS AND ALTERATIONS	 	17
	9.	 	COVENANT AGAINST LIENS	 	18
	10.	 	INSURANCE	 	19
	11.	 	DAMAGE AND DESTRUCTION	 	20
	12.	 	NONWAIVER	 	22
	13.	 	CONDEMNATION	 	22
	14.	 	ASSIGNMENT AND SUBLETTING	 	22
	15.	 	OWNERSHIP AND REMOVAL OF TRADE FIXTURES	 	24
	16.	 	HOLDING OVER	 	25
	17.	 	ESTOPPEL CERTIFICATES	 	25
	18.	 	SUBORDINATION	 	25
	19.	 	DEFAULTS; REMEDIES	 	26
	20.	 	FORCE MAJEURE	 	27
	21.	 	SECURITY DEPOSIT	 	27
	22.	 	INTENTIONALLY DELETED	 	27
	23.	 	SIGNS	 	28
	24.	 	COMPLIANCE WITH LAW	 	28
	25.	 	LATE CHARGES	 	29
	26.	 	LANDLORD'S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT	 	29
	27.	 	ENTRY BY LANDLORD	 	29
	28.	 	TENANT PARKING	 	30
	29.	 	MISCELLANEOUS PROVISIONS	 	31
	
EXHIBITS	
 	

 
	

A	
 	

OUTLINE OF PREMISES	
 	

 
	

B	
 	

INTENTIONALLY OMITTED	
 	

 
	

C	
 	

NOTICE OF LEASE TERM DATES	
 	

 
	

D	
 	

RULES AND REGULATIONS	
 	

 
	

E	
 	

ESTOPPEL CERTIFICATE	
 	

 
	

F	
 	

PARKING RULES AND REGULATIONS	
 	

 

i

 
INDEX

	 
	 	Page(s)

	Abatement Event	 	16
	Additional Rent	 	6
	After-Hours Use	 	16
	Alterations	 	17
	ATM	 	14
	Base Building	 	18
	Base Rent	 	5
	Base Year	 	6
	Brokers	 	33
	Building	 	3
	Building Parking Area	 	3
	Common Areas	 	3
	Continuous Operation Failure	 	13
	Eligibility Period	 	16
	Estimate	 	11
	Estimate Statement	 	11
	Estimated Excess	 	11
	Excess	 	11
	Expense Year	 	6
	Force Majeure	 	27
	Interest Notice	 	4
	Landlord	 	1
	Landlord Parties	 	19
	Landlord Termination Date	 	13
	Landlord Termination Notice	 	13
	Lease Commencement Date	 	3
	Lease Expiration Date	 	3
	Lease Term	 	3
	Notices	 	32
	Operating Expenses	 	6
	Option Rent	 	4
	Original Tenant	 	3
	Outside Agreement Date	 	4
	Permitted Assignee	 	3
	Permitted Use	 	12
	Premises	 	3
	Proposition 13	 	10
	Real Property	 	3
	Renovations	 	35
	Rent	 	6
	Retail Bank	 	14
	Retail Banking Purpose	 	14
	Statement	 	11
	Subject Space	 	23
	Systems and Equipment	 	9
	Tax Expenses	 	10
	Tenant	 	1
	Tenant Group	 	34
	Tenant Improvements	 	20
	Tenant's Share	 	10
	Termination Date	 	5
	Termination Notice	 	5
	Transfer Notice	 	23
	Transfer Premium	 	23
	Transferee	 	23
	Transfers	 	23

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9320 WILSHIRE BOULEVARD  

 OFFICE LEASE

    This
Office Lease (the "Lease"), dated as of the date set forth in Section 1 of the Summary of Basic Lease Information (the
"Summary"), below, is made by and between 9320 Wilshire Associates, LLC, a California limited liability company ("Landlord"), and Pacific Crest Bank, a California corporation, ("Tenant"). 

 SUMMARY OF BASIC LEASE INFORMATION  

	1.	 	Date:	 	May 16, 2001.
	

2.	
 	

Landlord:	
 	

9320 WILSHIRE ASSOCIATES, LLC, a California limited liability company
	

3.	
 	

Address of Landlord

(Article 29,14)	
 	

P.O. Box 16717

Beverly Hills, California 90209-2717

Attention: Legal Notices
	

4.	
 	

Tenant:	
 	

Pacific Crest Bank,

a California corporation
	

5.	
 	

Address of Tenant

(Article 29.14):	
 	

Pacific Crest Bank

30343 Canwood Street, Suite 100

Agoura Hills, California 91301

Attention: Ms. Carloyn Reinhart, Senior Vice President
	

 	
 	

 	
 	

with a copy to:
	

 	
 	

 	
 	

Mark T. Young, Esq.

Bernsley, Sievert, Young & Donahoe LLP

15910 Ventura Boulevard, Suite 1650

Encino, California 91436-2802
	

6.	
 	

Building and Premises (Article 1):	
 	

 	
 	

 
	

 	
 	

6.1 Building:	
 	

9320 Wilshire Boulevard

Beverly Hills, California 90212
	

 	
 	

6.2 Premises:	
 	

Approximately 3,102 rentable square feet of space located on the ground floor of the Building, known as Suite 105, as set forth on Exhibit A attached hereto.
	

7.	
 	

Term (Article 2):	
 	

 	
 	

 
	

 	
 	

7.1 Lease Term:	
 	

Three (3) years.
	

 	
 	

7.2 Lease Commencement Date:	
 	

June 1, 2001.
	

 	
 	

7.3 Lease Expiration Date:	
 	

May 31, 2004.
	

 	
 	

7.4 Option Term:	
 	

One (1) option to renew for three (3) years, subject to and in accordance with the terms of Section 2.2 of this Lease.

1

 

	

8.	
 	

Monthly Base Rent (Article 3)	
 	
Lease Year	
 	
Monthly Base Rent
	 	 	 	 	1

2

3	 	$10,857.00

$11,182.71

$11,518.19
	

9.	
 	

Additional Rent (Article 4).	
 	

 	
 	

 
	

 	
 	

9.1 Base Year:	
 	

The calendar year 2001.
	

 	
 	

9.2 Tenant's Share:	
 	

6.53%
	

10.	
 	

Use (Article 5):	
 	

Retail banking and general office use consistent with a first-class office building, in any event excluding any medical and/or dental use.
	

11.	
 	

Security Deposit (Article 21)	
 	

$11,518.19
	

12.	
 	

Parking Spaces (Article 28):	
 	

Four (4) reserved parking spaces (the "Reserved Spaces") and six (6) unreserved parking passes (the "Unreserved Passes").
	

13.	
 	

Brokers (Section 29.21):	
 	

CB Richard Ellis, Inc.

1840 Century Park East, Suite 700

Los Angeles, California 90067
	

 	
 	

 	
 	

and	
 	

 
	

 	
 	

 	
 	

CB Richard Ellis, Inc.

15303 Venture Boulevard, Suite 200

Sherman Oaks, California 91403-3157
	

14.	
 	

Tenant Improvement Allowance:	
 	

None.

2

 
 
 

OFFICE LEASE

1.  REAL PROPERTY, BUILDING AND PREMISES.  Upon and subject to the terms, covenants and conditions hereinafter set forth
in this Lease, Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, the premises set forth in Section 6.2 of the Summary (the "Premises"), which are a part of the building set
forth in Section 6.1 of the Summary (the "Building"). The Building is
commonly known as "9320 Wilshire Boulevard". Landlord and Tenant hereby acknowledge and agree that the rentable square footage of the Premises shall be as set forth in Section 6.2 of the
Summary and that the same shall not be subject to remeasurement or modification. The Building, the parking area servicing the Building (the "Building Parking Area"), any outside plaza areas, the land
and other improvements surrounding the Building which are designated from time to time by Landlord (on a commercially reasonable basis) as "Common Areas," as that term is defined below, appurtenant to
or servicing the Building, and the land upon which any of the foregoing are situated, are herein sometimes collectively referred to as the "Real Property." Tenant's Share shall not be modified based
upon any modification by Landlord of the Common Areas as permitted herein. Tenant shall have the non-exclusive right to use and enjoy in common with other tenants in the Building those
portions of the Real Property which are provided for use in common by Tenant and any other tenants of the Real Property (the "Common Areas"). Subject to Landlord's reasonable rules and regulations, as
set forth on Exhibit D, attached hereto, and Landlord's reasonable access control procedures, Tenant shall have the right of access to the Premises and the Building Parking Area
twenty-four (24) hours per day, seven (7) days per week during the "Lease Term," as that term is defined in Article 2 of this Lease. Tenant hereby acknowledges that
(i) Tenant has been and, as of the date hereof, is in occupancy of the Premises pursuant to the terms of a prior lease with Landlord's predecessor-in-interest,
(ii) based upon the foregoing, Tenant shall continue to accept the Premises following the Lease Commencement Date in its then existing, "as is" condition, and (iii) except as
specifically set forth in this Lease, Landlord shall not be obligated to provide or pay for any improvement work or services related to the improvement of the Premises. Tenant also acknowledges that
Landlord has made no representation or warranty regarding the condition of the Premises or the Building except as specifically set forth in this Lease. 

2.  INITIAL LEASE TERM; OPTION TERM; TENANT TERMINATION RIGHT.  

    2.1  Initial Term.  The terms and provisions of this Lease shall be effective as of the date of this
Lease except for the provisions of this Lease relating to the payment of Rent. The term of this Lease (the "Lease Term") shall be as set forth in Section 7.1  of the Summary and shall commence on
the date (the "Lease Commencement Date") set forth in Section 7.2 of the Summary and
shall terminate on the date (the "Lease Expiration Date") set forth in Section 7.3 of the Summary, unless sooner terminated or extended as
hereinafter provided. For purposes of this Lease, the term "Lease Year" shall mean each consecutive twelve (12) month period during the Lease Term, provided that the last Lease Year shall end
on the Lease Expiration Date. At any time during the Lease Term, Landlord may deliver to Tenant a notice of Lease Term dates in the form as set forth in  Exhibit C, attached hereto, which notice
Tenant shall execute and return to Landlord within five (5) days of receipt thereof. 

    2.2  Option Term.  

    2.2.1  Option Right.  Landlord hereby grants the Tenant named in this Lease (the "Original Tenant") or an
assignee permitted or approved pursuant to the terms of Section 14.6 of this Lease (a "Permitted Assignee"), one (1) option to extend the Lease Term for a period of three
(3) years (the "Option Term"), which option shall be exercisable only by written notice delivered by Tenant to Landlord as provided below, provided that, as of the date of delivery of such
notice, Tenant is not in default under this Lease and Tenant has not previously been in default under this Lease more than once. Upon the
proper exercise of such option to extend, and provided that, as of the end of the initial Lease Term, Tenant is not in default under this Lease and Tenant has not 

3

 

previously been in default under this Lease more than once, the Lease Term, as it applies to the Premises, shall be extended for a period of three (3) years. The rights contained in this  Section 2.2 shall be personal to the Original Tenant or a Permitted Assignee and may only be exercised by the Original Tenant or a Permitted
Assignee (and not any other assignee, sublessee or other transferee of the Original Tenant's interest in this Lease) if the Original Tenant or a Permitted Assignee occupies the entire Premises. 

    2.2.2  Option Rent.  The "Rent," as that term is defined in Section 4.1, below, payable by Tenant
during the Option Term (the "Option Rent") shall be equal to the rent (including additional rent and considering any "base year" or "expense stop" applicable thereto), including all escalations, at
which retail ground floor tenants rendering financial services, as of the commencement of the Option Term, are leasing non-sublease, non-encumbered, non-equity space comparable
in size, location and quality to the Premises for a term of three (3) years, which comparable space is located in the Building and in the "Comparable Buildings," as that term is defined, below,
in either event, taking into consideration only the following concessions: (a) rental abatement concessions, if any, being granted such tenants in connection with such comparable spaces, and
(b) tenant improvements or allowances provided or to be provided for such comparable space, taking into account, and deducting the value of, the existing improvements in the Premises, such
value to be based upon the age, quality and layout of the improvements and the extent to which the same could be utilized by Tenant based upon the fact that the precise tenant improvements existing in
the Premises are specifically suitable to Tenant. For purposes of this Lease, the "Comparable Buildings" shall mean comparable first class office buildings located in that portion of the City of
Beverly Hills, California, bordered on the North by "big" Santa Monica Boulevard, on the South by Charleville Road, on the West by the intersection of Wilshire Boulevard and Santa Monica Boulevard,
and on the East by Palm Avenue. 

    2.2.3  Exercise of Options.  The options contained in this Section 2.2 shall be exercised by
Tenant, if at all, only in the following manner: (i) Tenant shall deliver written notice (the "Interest Notice") to Landlord not more than fourteen (14) months nor less than twelve
(12) months prior to the expiration of the initial Lease Term stating that Tenant may be interested in exercising its option, which Interest Notice shall not bind Tenant to lease the Premises
during the Option Term; (ii) Landlord, after receipt of Tenant's notice, shall deliver notice (the "Option Rent Notice") to Tenant not less than ten (10) months prior to the expiration
of the initial Lease Term setting forth the Option Rent; and (iii) if Tenant wishes to exercise such option, Tenant shall, on or before the earlier of (A) the date occurring nine
(9) months prior to the expiration of the initial Lease Term and (B) the date occurring thirty (30) days after Tenant's receipt of the Option Rent Notice, exercise the option by
delivering written notice thereof to Landlord, and upon, and concurrent with, such exercise, Tenant may, at its option, object to the Option Rent contained in the Option Rent Notice, in which case the
parties shall follow the procedure, and the Option Rent shall be determined, as set forth in Section 2.2.4 below. 

    2.2.4  Determination of Option Rent.  In the event Tenant timely and appropriately objects to the Option
Rent, Landlord and Tenant shall attempt to agree upon the Option Rent using their best good-faith efforts. If Landlord and Tenant fail to reach agreement within ten (10) business
days following Tenant's objection to the Option Rent (the "Outside Agreement Date"), then each party shall make a separate determination of the Option Rent, as the case may be, within five (5) 
business days, and such determinations shall be submitted to arbitration in accordance with Sections 2.2.4.1 through 2.2.4.7 below. 

    2.2.4.1    Landlord
and Tenant shall each appoint one arbitrator who shall by profession be a real estate lawyer or broker who shall have been active over the five
(5) year period ending on the date of such appointment in the leasing (or appraisal, as the case may be) of commercial properties in the Beverly Hills, California area. The determination of the 

4

 

arbitrators shall be limited solely to the issue area of whether Landlord's or Tenant's submitted Option Rent is the closest to the actual Option Rent as determined by the arbitrators, taking into
account the requirements of Section 2.2.2 of this Lease. Each such arbitrator shall be appointed within fifteen (15) days after the applicable Outside Agreement Date. 

    2.2.4.2    The
two arbitrators so appointed shall within ten (10) days of the date of the appointment of the last appointed arbitrator agree upon and appoint a
third arbitrator who shall be qualified under the same criteria set forth hereinabove for qualification of the initial two arbitrators. 

    2.2.4.3    The
three arbitrators shall within thirty (30) days of the appointment of the third arbitrator reach a decision as to whether the parties shall use
Landlord's or Tenant's submitted Option Rent, and shall notify Landlord and Tenant thereof. 

    2.2.4.4    The
decision of the majority of the three arbitrators shall be binding upon Landlord and Tenant. 

    2.2.4.5    If
either Landlord or Tenant fails to appoint an arbitrator within fifteen (15) days after the applicable Outside Agreement Date, the arbitrator
appointed by one of them shall reach a decision, notify Landlord and Tenant thereof, and such arbitrator's decision shall be binding upon Landlord and Tenant. 

    2.2.4.6    If
the two arbitrators fail to agree upon and appoint a third arbitrator, or both parties fail to appoint an arbitrator, then the appointment of the third
arbitrator or any arbitrator shall be dismissed and the matter to be decided shall be forthwith submitted to arbitration under the provisions of the American Arbitration Association, but subject to
the instruction set forth in this Section 2.2.4. 

    2.2.4.7    The
cost of arbitration shall be paid by Landlord and Tenant equally. 

    2.3  Tenant Termination Right.  Provided that Tenant is not in default under this Lease as of the date of
Tenant's delivery of the "Termination Notice," as that term is defined below, the Original Tenant or a Permitted Assignee shall have the right, during the initial Lease Term only, to terminate this
Lease, effective as of the date set forth in the Termination Notice (the "Termination Date"), which date shall in no event occur prior to the expiration of the eighteenth (18th) full calendar month of
the Lease Term nor following the expiration of the initial Lease Term, provided that (i) Landlord receives written notice (the "Termination Notice") from Tenant on or before the date which is
six (6) months prior to the Termination Date, stating Tenant's election to terminate this Lease pursuant to the terms and conditions of this Section
2.3, and (ii) concurrently with Landlord's receipt of the Termination Notice, Landlord receives from Tenant an amount (the "Termination Fee") equal to the sum of
(A) the product of (a) three (3), and (b) the monthly Base Rent payable under this Lease as of the Termination Date, and (B) the product of (a) a fraction, the
numerator of which equals the number of full and partial calendar months remaining in the Lease Term as of the Termination Date, and denominator of which equals thirty-six (36), and
(b) $12,080.88, as consideration for and as a condition precedent to such early termination. Provided that Tenant terminates this Lease pursuant to the terms of this  Section 2.3, this Lease
shall automatically terminate and be of no further force or effect and Landlord and Tenant shall be relieved of their
respective obligations under this Lease as of the Termination Date, except those obligations set forth in this Lease which specifically survive the expiration or earlier termination of this Lease,
including, without limitation, the payment by Tenant of all amounts owed by Tenant under this Lease, up to and including the Termination Date. 

3.  BASE RENT.  Tenant shall pay, without notice or demand, except as otherwise set forth in this Lease, to Landlord at
its office in the Building, check for lawful money of the United States of America, base rent ("Base Rent") as set forth in Section 8 of the
Summary, payable in equal monthly 

5

 

installments as set forth in Section 8 of the Summary in advance on or before the first day of each month during the Lease Term, without any
setoff or deduction whatsoever, except as otherwise set forth in this Lease. The Base Rent for the first full month of the Lease Term, which occurs after the expiration of any free rent period, shall
be paid at the time of Tenant's execution of this Lease. If any rental payment date (including the Lease Commencement Date) falls on a day of the month other than the first day of such month or if any
rental payment is for a period which is shorter than one month, then the rental for any such fractional month shall be a proportionate amount of a full calendar month's rental. All other payments or
adjustments required to be made under the terms of this Lease that require proration on a time basis shall be prorated on the same basis. 

4.  ADDITIONAL RENT.  

    4.1  Additional Rent.  In addition to paying the Base Rent specified in  Article 3 of this Lease, Tenant shall pay, as additional rent, "Tenant's
Share" of the annual "Direct Expenses," as those terms are defined in
Sections 4.2.6 and 4.2.2 of this Lease, respectively, which are in excess of Direct Expenses incurred in the "Base Year," as that term is defined in Section 4.2.1  of this Lease; provided, however,
that in no event shall any decrease in Direct Expenses for any "Expense Year," as that term is defined in Section 4.2.3 of this Lease,
below the Direct Expenses for the Base Year entitle Tenant to any decrease in Base Rent or any credit against sums due under this Lease. Such payments by Tenant together with any and all other amounts
payable by Tenant to Landlord pursuant to the terms of this Lease, shall be hereinafter collectively referred to as the "Additional Rent." The Base Rent and Additional Rent are herein collectively
referred to as "Rent" or "rent". All amounts due under this Article 4 as Additional Rent shall be payable for the same periods and in the same manner as the Base Rent. Without limitation on other
obligations of Tenant which shall survive the expiration of the Lease Term, the obligations of Tenant to pay the Additional Rent provided for in this  Article 4 shall survive the expiration of the
Lease Term. 

    4.2  Definitions.  As used in this Article 4, the
following terms shall have the meanings hereinafter set forth: 

    4.2.1    "Base
Year" shall be the period set forth in Section 9.1 of the Summary. 

    4.2.2    "Direct
Expenses" shall mean "Operating Expenses" and "Tax Expenses." 

    4.2.3    "Expense
Year" shall mean each calendar year in which any portion of the Lease Term falls, through and including the calendar year in which the Lease Term
expires, provided that Landlord, upon notice to Tenant, may change the Expense Year from time to time to any other twelve (12) consecutive month period, and in the event of any such change,
Tenant's Share of Direct Expenses shall be equitably adjusted for any Expense Year involved in any such change. 

    4.2.4    "Operating
Expenses" shall mean all expenses, costs and amounts of every kind and nature which Landlord shall pay during any Expense Year because of or in
connection with the ownership, management, maintenance, repair, replacement, restoration or operation of the Real Property, including, without limitation, any amounts paid for (i), the cost of
supplying all utilities, the cost of operating, maintaining, repairing, renovating and managing the utility systems, mechanical systems, sanitary and storm drainage systems, and any escalator and/or
elevator systems, and the cost of supplies and equipment and maintenance and service contracts in connection therewith; (ii) the cost of licenses, certificates, permits and inspections and the
cost of contesting the validity or applicability of any governmental enactments which may affect Operating Expenses, and the costs incurred in connection with the implementation and operation of a
transportation system management program or similar program; (iii) the cost of insurance carried by Landlord, in such amounts as Landlord may reasonably determine or as may be required by any
mortgagees or the lessor of any underlying or ground lease affecting the Real Property and/or the Building; (iv) the cost of landscaping, relamping, and all supplies, tools, equipment and
materials 

6

 

used in the operation, repair and maintenance of the Building; (v) the cost of parking area repair, restoration, and maintenance, including, but not limited to, resurfacing, repainting,
restriping, and cleaning; (vi) fees, charges and other costs, including consulting fees, legal fees and accounting fees, of all contractors engaged by Landlord or otherwise reasonably incurred
by Landlord in connection with the management, operation, maintenance and repair of the Building and Real Property; (vii) any equipment rental agreements or management agreements (including the
cost of any management fee and the fair rental value of any office space provided thereunder); (viii) wages, salaries and other compensation and benefits of all persons engaged in the
operation, management, maintenance or security of the Building, and employer's Social Security taxes, unemployment taxes or insurance, and any other taxes which may be levied on such wages, salaries,
compensation and benefits; provided, that if any employees of Landlord provide services for more than one building of Landlord, then a prorated portion of such employees' wages, benefits and taxes
shall be included in Operating Expenses based on the portion of their working time devoted to the Building; (ix) payments under any easement, license, operating agreement, declaration,
restrictive covenant, underlying or ground lease (excluding rent), or instrument pertaining to the sharing of costs by the Building; (x) operation, repair, maintenance and replacement of all
"Systems and Equipment," as that term is defined below, and components thereof of the Building; (xi) the cost of janitorial, alarm and security service, window cleaning, trash removal, parking
lot sweeping, landscape maintenance, replacement of wall and floor coverings, ceiling tiles and fixtures in common areas, maintenance of curbs and walkways and repair to roofs;
(xii) amortization (including interest on the unamortized cost) of the cost of acquiring or the rental expense of personal property used in the maintenance, operation and repair of the Building
and Real Property; and (xiii) the cost of any capital improvements or other costs (I) which are intended as a labor-saving device or to effect other economies in the operation or
maintenance of the Building, or (II) made to the Building that are required under any governmental law or regulation, provided, however, that if any such cost described in (I) or (II),
above, is a capital expenditure, such cost shall be amortized (including interest on the unamortized cost) over its useful life as Landlord shall reasonably determine. Notwithstanding the foregoing,
for purposes of this Lease, Operating Expenses shall not, however, include: 

    (a) costs,
including marketing costs, legal fees, space planners' fees, advertising and promotional expenses, and brokerage fees incurred in connection with the
original construction or development, or original or future leasing of the Building, and costs, including permit, license and inspection costs, incurred with respect to the installation of tenant
improvements made for new tenants in the Building or incurred in renovating or otherwise improving, decorating, painting or redecorating vacant space for tenants or other occupants of the Building
(excluding, however, such costs relating to any common areas of the Building or parking facilities); 

    (b) except
as set forth in items (xii) and (xiii) above, depreciation, interest and principal payments on mortgages and other debt costs, if any,
penalties and interest, costs of capital repairs and alterations, and costs of capital improvements and equipment; 

    (c) costs
of utilities or services sold to Tenant for which the Landlord is reimbursed by Tenant or any tenant or occupant of the Building or by insurance by its
carrier or any tenant's carrier or by anyone else (or would have been reimbursed if Landlord had used commercially reasonable efforts to collect such amounts), and electric power costs for which any
tenant directly contracts with the local public service company; 

    (d) any
bad debt loss, rent loss, or reserves for bad debts or rent loss; 

    (e) costs
associated with the operation of the business of the partnership or entity which constitutes the Landlord, as the same are distinguished from the costs of
operation of the 

7

 

Building (which shall specifically include, but not be limited to, accounting costs associated with the operation of the Building). Costs associated with the operation of the business of the
partnership or entity which constitutes the Landlord include costs of partnership accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the actions of the Tenant
may be in issue), costs of syndicating, financing, mortgaging or hypothecating any of the Landlord's interest in the Building, and costs incurred in connection with any disputes between Landlord and
its employees, between Landlord and Building management, or between Landlord and other tenants or occupants, and Landlord's general corporate overhead and general and administrative expenses; 

    (f)  the
wages and benefits of any employee who does not devote substantially all of his or her employed time to the Building unless such wages and benefits are
prorated to reflect time spent on operating and managing the Building vis-á-vis time spent on matters unrelated to operating and managing the Building; provided,
that in no event shall Operating Expenses for purposes of this Lease include wages and/or benefits attributable to personnel above the level of Building manager or Building engineer; 

    (g) amount
paid as ground rental for the Real Property by the Landlord; 

    (h) except
for a Building management fee, overhead and profit increment paid to the Landlord or to subsidiaries or affiliates of the Landlord for services in the
Building to the extent the same exceeds the costs of such services rendered by qualified first-class unaffiliated third parties on a competitive basis; 

    (i)  any
compensation paid to clerks, attendants or other persons in commercial concessions operated by the Landlord; 

    (j)  rentals
and other related expenses incurred in leasing air conditioning systems, elevators or other equipment which if purchased the cost of which would be
excluded from Operating Expenses as a capital cost, except equipment not affixed to the Building which is used in providing janitorial or similar services and, further excepting from this exclusion
such equipment rented or leased to remedy or ameliorate an emergency condition in the Real Property; 

    (k) all
items and services for which Tenant or any other tenant in the Building reimburses Landlord or which Landlord provides selectively to one or more tenants (other
than Tenant) without reimbursement; 

    (l)  costs,
other than those incurred in ordinary maintenance and repair, for sculpture, paintings, fountains or other objects of art; 

    (m) any
costs expressly excluded from Operating Expenses elsewhere in this Lease; 

    (n) rent
for any office space occupied by Building management personnel to the extent the size or rental rate of such office space exceeds the size or fair market
rental value of office space occupied by management personnel of the buildings comparable to and in the vicinity of the Building with adjustment where appropriate for the size of the applicable
project; 

    (o) costs
arising from Landlord's charitable or political contributions; 

    (p) costs
of leasing commissions incurred in connection with the leasing of space in the Building; 

    (q) costs
arising from the gross negligence or willful misconduct of Landlord; 

8

 

    (r) tax penalties resulting from Landlord's negligence, inability or unwillingness to make payments and/or to file returns when due; and 

    (s) costs
incurred to comply with laws relating to the removal of hazardous material (as defined under applicable law) which was in existence in the Building or on the
Real Property prior to the Lease Commencement Date, and was of such a nature that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such hazardous
material, in the state, and under the conditions that it then existed in the Building or on the Real Property, would have then required the removal of such hazardous material or other remedial or
containment action with respect thereto; and costs incurred to remove, remedy, contain, or treat hazardous material, which hazardous material is brought into the Building or onto the Real Property
after the date hereof by Landlord or
any other tenant of the Building and is of such a nature, at that time, that a federal, State or municipal governmental authority, if it had then had knowledge of the presence of such hazardous
material, in the state, and under the conditions, that it then exists in the Building or on the Real Properly, would have then required the removal of such hazardous material or other remedial or
containment action with respect thereto. 

    Notwithstanding
anything in this Section 4.2.4 to the contrary, Landlord shall not collect Operating Expenses from Tenant and all other tenants in the Building in an amount in
excess of what Landlord incurred for the items included in Operating Expenses. Furthermore, any refunds or discounts actually received by Landlord for any category of Operating Expenses shall reduce
Operating Expenses in the applicable Expense Year (pertaining to such category of Operating Expenses). 

    If
Landlord is not furnishing any particular work or service (the cost of which, if performed by Landlord, would be included in Operating Expenses) to a tenant who has undertaken to
perform such work or service in lieu of the performance thereof by Landlord, Operating Expenses shall be deemed to be increased by an amount equal to the additional Operating Expenses which would
reasonably have been incurred during such period by Landlord if it had at its own expense furnished such work or service to such tenant. If the Building is not at least ninety-five percent
(95%) occupied during all or a portion of any Expense Year, Landlord may make an appropriate adjustment to the variable components of Operating Expenses for such year or applicable portion thereof,
employing sound accounting and management principles, to determine the amount of Operating Expenses that would have been incurred had the Building been ninety-five percent (95%) occupied;
and the amount so determined shall be deemed to be the amount of Operating Expenses for such year, or applicable portion thereof. Landlord shall have the right, from time to time, to equitably
allocate some or all of the Operating Expenses among different tenants of the Building (the "Cost Pools"). Such Cost Pools may include, but shall not be limited to, the office space tenants of the
Building and the retail space tenants of the Building. Notwithstanding anything to the contrary set forth in this Article 4, when calculating Direct Expenses for the Base Year, Operating
Expenses shall exclude market-wide labor-rate increases due to extraordinary circumstances, including, but not limited to, boycotts and strikes, and utility rate increases due
to extraordinary circumstances including, but not limited to, conservation surcharges, boycotts, embargoes or other shortages, or amortized costs relating to capital improvements. In no event shall
the components of Direct Expenses for any Expense Year related to electrical costs be less then the components of Direct Expenses related to electrical costs in the Base Year. "Systems and Equipment"
shall mean any plant, machinery, transformers, duct work, cable, wires, and other equipment, facilities, and systems designed to supply heat, ventilation, air conditioning and humidity or any other
services or utilities, or comprising or serving as any component or portion of the electrical, gas, steam, plumbing, sprinkler, communications, alarm, security, or fire/life safety systems or
equipment, or any other mechanical, electrical, electronic, computer or other systems or equipment which serve the Building in whole or in part. All assessments and premiums which are not specifically
charged to Tenant because of what Tenant has done, which can be paid by Landlord in installments, 

9

 

shall be paid by Landlord in the maximum number of installments permitted by law (except to the extent inconsistent with the general practice of the comparable buildings in the vicinity of the
Building) and shall be included as Operating Expenses in the year in which the assessment or premium Installment is actually paid. 

    4.2.5    "Tax
Expenses" shall mean all federal, state, county, or local governmental or municipal taxes, fees, charges or other impositions of every kind and nature,
whether general, special, ordinary or extraordinary (including, without limitation, real estate taxes, general and special assessments, special assessment district payments, transit taxes, leasehold
taxes or taxes based upon the receipt of rent, including gross receipts or sales taxes applicable to the receipt of rent, unless required to be paid by Tenant, personal property taxes imposed upon the
fixtures, machinery, equipment, apparatus, systems and equipment, appurtenances, furniture and other personal property used in connection with the Building) which Landlord shall pay because of or in
connection with the ownership, leasing and operation of the Real Property or Landlord's interest therein. If in any Expense Year subsequent to the Base Year, the amount of Tax Expenses decreases below
the amount of Tax Expenses in the Base Year, then for purposes of such Expense Year and all subsequent Expense Years, the Base Year Tax Expenses shall be deemed to be reduced by the amount of such
decrease. Tax Expenses shall include, without limitation: 

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

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

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

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

    Notwithstanding
anything to the contrary contained in this Section 4.2.5, there shall be excluded from Tax Expenses
(a) federal, state and local income taxes, and (b) all other taxes to the extent applicable to Landlord's general, gross or net income (as opposed to rents, receipts or income
attributable to operations at the Building). 

    4.2.6    "Tenant's
Share" shall mean the percentage set forth in Section 9.2 of the Summary. 

    4.3  Calculation and Payment of Additional Rent.  

    4.3.1  Calculation of Excess and Underage.  If for any Expense Year ending or commencing within the Lease
Term, Tenant's Share of Direct Expenses for such Expense Year exceeds Tenant's Share of Direct Expenses for the Base Year, then Tenant shall pay to Landlord, in the manner set 

10

 

forth in Section 4.3.2, below, and as Additional Rent, an amount equal to the excess (the "Excess"). 

    4.3.2  Statement of Actual Direct Expenses and Payment by Tenant.  Following the end of each Expense
Year, Landlord shall give to Tenant a statement (the "Statement") which Statement shall state the actual Direct Expenses incurred or accrued for such preceding Expense Year, and which shall indicate
the amount, if any, of any Excess or underage. Upon receipt of the Statement for each Expense Year ending during the Lease Term, if an Excess is present, Tenant shall pay, within thirty
(30) days following receipt of the Statement, the full amount of the Excess for such Expense Year, less the amounts, if any, paid during such Expense Year as "Estimated Excess," as that term is
defined in Section 4.3.3 below. In the event that the Statement shall indicate that Tenant paid more as Estimated Excess than the actual Excess,
Tenant shall be credited the amount of such overpayment against the next month's rent due from Tenant under this Lease. Even though the Lease Term has expired and Tenant has vacated the Premises, when
the final determination is made of Tenant's Share of the Direct Expenses for the Expense Year in which this Lease terminates, if an Excess is present, Tenant shall, within thirty (30) days of
receipt of a Statement setting forth the Excess, pay to Landlord an amount as calculated pursuant to the provisions of Section 4.3.1 of this
Lease, and if Tenant paid more as Estimated Excess than the actual Excess, Landlord shall. within thirty (30) days of Landlord's determination, deliver a check to Tenant in the amount of such
overpayment. The provisions of this Section 4.3.2 shall survive the expiration or earlier termination of the Lease Term, provided that, other
than Tax Expenses and costs incurred for utilities, Tenant shall not be responsible for Tenant's Share of any Direct Expenses which are first billed to Tenant more than two (2) calendar years
after the end of the Expense Year to which such Direct Expenses relate. 

    4.3.3  Statement of Estimated Direct Expenses.  Landlord, at Landlord's option, may elect to give Tenant
a yearly expense estimate statement (the "Estimate Statement") which Estimate Statement shall set forth Landlord's reasonable estimate (the "Estimate") of what the total amount of Direct Expenses for
the then-current Expense Year shall be and the estimated Excess (the "Estimated Excess") as calculated by comparing Tenant's Share of Direct Expenses, which shall be based upon the
Estimate, to Tenant's Share of Direct Expenses for the Base Year. The failure of Landlord to timely furnish the Estimate Statement for any Expense Year shall not preclude Landlord from enforcing its
rights to collect any Estimated Excess under this Article 4. If pursuant to the Estimate Statement an Estimated Excess is calculated for the
then-current Expense Year, Tenant shall pay, with its next installment of Base Rent
due, a fraction of the Estimated Excess for the then-current Expense Year (reduced by any amounts paid pursuant to the last sentence of this Section
4.3.3). Such fraction shall have as its numerator the number of months which have elapsed in such current Expense Year, including the month of such payment and twelve
(12) as its denominator. Until a new Estimate Statement is furnished, Tenant shall pay monthly, with the monthly Base Rent installments, an amount equal to one-twelfth (1/12) of the
total Estimated Excess set forth in the previous Estimate Statement delivered by Landlord to Tenant. 

    4.4  Taxes and Other Charges for Which Tenant is Directly Responsible.  Tenant shall reimburse Landlord
upon demand for any and all taxes or assessments required to be paid by Landlord (except to the extent included in Tax Expenses by Landlord), excluding state, local and federal personal or corporate
income taxes measured by the net income of Landlord from all sources and estate and inheritance taxes, whether or not now customary or within the contemplation of the parties hereto, when: 

    4.4.1    Said
taxes are measured by or reasonably attributable to the cost or value of Tenant's equipment, furniture, fixtures and other personal property located in the
Premises, or by the cost or value of any leasehold improvements made in or to the Premises by or for Tenant, to the extent the cost or value of such leasehold improvements exceeds the cost or value of
a building standard 

11

 

build-out as determined by Landlord regardless of whether title to such improvements shall be vested in Tenant or Landlord; provided, however, that Landlord acknowledges that the leasehold
improvements existing in the Premises as of the date of this Lease are not above building standard for purposes of this Section 4.4.1; 

    4.4.2    Said
taxes are assessed upon or with respect to the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy by Tenant of
the Premises or any portion of the Real Property (including the Building Parking Area); 

    4.4.3    Said
taxes are assessed upon this transaction or any document to which Tenant is a party creating or transferring an interest or an estate in the Premises; or 

    4.4.4    Said
assessments are levied or assessed upon the Real Property or any part thereof or upon Landlord and/or by any governmental authority or entity, and relate to
the construction, operation, management, use, alteration or repair of mass transit improvements. 

    4.5  Landlord's Books and Records.  Within one (1) year after receipt of a Statement by Tenant, if
Tenant disputes the amount of Additional Rent set forth in the Statement, an independent certified public accountant (which accountant is a member of a nationally recognized accounting firm working on
a
non-contingency fee basis), designated and paid for by Tenant, may, after reasonable notice to Landlord and at reasonable times, inspect Landlord's records with respect to the Statement at
Landlord's offices, provided that Tenant is not then in default under this Lease and Tenant has paid all amounts required to be paid under the applicable Estimate Statement and Statement, as the case
may be. In connection with such inspection, Tenant and Tenant's agents must agree in advance to follow Landlord's reasonable rules and procedures regarding inspections of Landlord's records, and shall
execute a commercially reasonable confidentiality agreement regarding such inspection. Tenant's failure to dispute the amount of Additional Rent set forth in any Statement within one (1) year
of Tenant's receipt of such Statement shall be deemed to be Tenant's approval of such Statement and Tenant, thereafter, waives the right or ability to dispute the amounts set forth in such Statement.
If after such Inspection, Tenant still disputes such Additional Rent, a determination as to the proper amount shall be made, at Tenant's expense, by an independent certified public accountant (the
"Accountant") selected by Landlord and subject to Tenant's reasonable approval; provided that if such determination by the Accountant proves that Direct Expenses were overstated by more than five
percent (5.0%), then the cost of the Accountant and the cost of such determination shall be paid for by Landlord. In no event shall this Section 4.5 be deemed to allow any review of any of
Landlord's records by any subtenant of Tenant. Tenant agrees that this Section 4.5 shall be the sole method to be used by Tenant to dispute the
amount of any Direct Expenses payable or not payable by Tenant pursuant to the terms of this Lease, and Tenant hereby waives any other rights of law or in equity relating to such subject matter. 

5.  USE OF PREMISES.  

    5.1  Permitted Use; Use Restrictions.  Tenant shall use the Premises only for the purpose as set forth in  Section 10 of the Summary (the
"Permitted Use") and for no other use or purpose, unless first approved in writing by Landlord, which approval
Landlord may withhold in its sole discretion. Tenant agrees that it shalt not use, or permit any person to use, the Premises or any part thereof for any use or purpose contrary to the provisions of
the Rules and Regulations set forth in Exhibit D, attached hereto, or in violation of the laws of the United States of America, the State of
California, or the ordinances, regulations or requirements of any local, municipal or county governing body or other lawful authorities having jurisdiction over the Building. Tenant shall comply with
all recorded covenants, conditions, and restrictions, and the provisions of all ground or underlying leases, now or hereafter affecting the Real Property. Subject to the terms of Section 29.25
of this Lease, Tenant shall not use or allow another person or entity to use any part of the Premises for the storage, use, treatment, manufacture or sale of "Hazardous Materials" as that term is
defined in Section 29.25 of this Lease. 

12

 
Tenant shall not do or permit anything to be done in or about the Premises which will in any way damage the reputation of the Building or obstruct or interfere with the rights of other tenants or
occupants of the Building, or injure or annoy them or use or allow the Premises to be used for any improper, unlawful or objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance
in, on or about the Premises. Without limiting the foregoing, Tenant covenants not to do any of the following with respect to the Premises: (i) conduct any auction, fire, distress, going out of
business, liquidation, bankruptcy or like sales in the Premises or on the Real Property; (ii) display, sell, lease, or offer for sale or lease, in any manner on the Premises or on the Real
Property, alcoholic beverages or pornographic material of any kind, including books, magazines and movies; or (iii) engage in any activity or use the Premises for any purpose that is illegal or
is not in keeping with the standards or character of the Building or would otherwise interfere with standard Building operations. Tenant shall comply with all recorded covenants, conditions, and
restrictions now or hereafter affecting the Real Property. 

    5.2  Quality Standards.  Landlord and Tenant acknowledge that this Lease would not have been entered into
by Landlord but for the high quality, first class reputation of Tenant in banking operations, and further acknowledge that Landlord's primary concern is with the quality and reputation of the retail
operations located in the Building and, therefore, the character and quality of Tenant's operation are of paramount concern to Landlord. Accordingly Tenant agrees, as a material part of this Lease,
that at all times during the Lease Term, Tenant shall utilize the Premises and operate its business therefrom prudently and in a first class manner. 

    5.3  Maintenance of Premises.  Because of the location of the Premises in the Building and the critical
importance of maintaining the Premises in a first-class condition so as not to detract from the appearance and condition of the Building, Landlord shall have the right during the Lease Term to approve
the concept, plans and specifications for all improvements for the Premises. Landlord hereby approves the existing improvements located within the Premises. Once approved, Tenant agrees not to allow
the improvements in the Premises to deteriorate beyond the standard approved by Landlord and to keep the same (as well as all personal property located in the Premises) in a first-class condition,
reasonable wear and tear excepted. 

    5.4  Tenant's Trade Name.  Tenant acknowledges that the name of Tenant's business establishment in the
Premises is of utmost concern and importance to Landlord. Landlord shall therefore have the right to approve, in Landlord's sole discretion, the name of Tenant's business establishment to be located
in the Premises. Landlord hereby approves the name "Pacific Crest Bank." 

    5.5  Additional Rules and Regulations.  In addition to the rules and regulations and the other provisions
of this Lease, Tenant hereby covenants not to: (i) use any area of the Real Property outside of the Premises (a) for the sale of any merchandise, (b) to solicit business,
(c) except as specifically set forth in Article 23 of this Lease, to display signs, (d) for any business purpose, or (e) for public meetings or entertainment;
(ii) use, or permit to be used, any sound broadcasting or amplifying device or any video or vending machine that can be heard outside of the Premises; or (iii) perform, or allow any
employee
or agent to perform, any act or carry on any practice that may (a) damage the Premises or any other part of the Real Property, or (b) disturb any other tenant or other person in the
Building. 

    5.6  Continuous Operation.  Tenant shall keep the Premises open for business at all times during the
Lease Term during normal business hours (bank holidays excepted). Except to the extent required as a result of a casualty, in the event that Tenant shall fail to operate its business in the Premises
during normal business hours for a period of five (5) consecutive business days (any such failure to be referred to herein as a "Continuous Operation Failure"), Landlord shall have the right,
at its sole option, in addition to any other remedies available to Landlord, to terminate this Lease, effective as of the date set forth in the "Landlord Termination Notice," as that term is defined,
below (the "Landlord Termination Date"), provided that Tenant receives written notice (the "Landlord Termination Notice") 

13

 

from Landlord on or before the date which is thirty (30) days prior to the Landlord Termination Date stating Landlord's election to terminate the Lease pursuant to the terms and conditions of
this Section 5.6. In the event that Landlord terminates the Lease pursuant to the terms of this Section 5.6, this Lease shall automatically terminate and be of no further force or effect
and Landlord and Tenant shall be relieved of their respective obligations under the Lease as of the Landlord Termination Date, except those obligations set forth in the Lease which specifically
survive the expiration or earlier termination of this Lease, including, without limitation, the payment by Tenant of all amounts owed by Tenant under this Lease up to and including the Landlord
Termination Date. 

    5.7  ATM.  Notwithstanding anything in this Lease to the contrary, subject to the terms of this Lease
(including, without limitation, Article 8 of this Lease), Tenant shall have the right, at Tenant's sole cost and expense, during the Lease Term to install, operate and maintain one
(1) automated teller machine ("ATM") in a location on the Real Property approved by Landlord facing either Wilshire Boulevard or Elm Drive, provided that (a) in no event shall Landlord
be required to incur any costs or expenses of any kind in connection with the installation or operation of the ATM, and (b) in no event shall Landlord be obligated to alter the Building or the
Building operations in any way (including, by way of example only, permitting access to the lobby of the Building during hours other than "Building Hours," as that term is defined in
Section 6.1.1, below), in connection with the installation and operation of the ATM. Tenant hereby acknowledges and agrees that (i) Tenant shall be fully responsible for the maintenance,
repair, compliance with laws and insuring of the ATM, (ii) Tenant shall comply with all laws, ordinances and regulations applicable to the ATM, (iii) Tenant's indemnity, as set forth in
Section 10.1 of this Lease, shall specifically apply to any claims in connection with or related to the installation, operation maintenance or use of the ATM, and (iv) Tenant shall keep
the ATM in good working order and the area surrounding the ATM in a neat and orderly condition. All aspects of the ATM, including, without limitation, the size, design, lighting, color, and manner of
installation, shall be subject to the approval of Landlord. Tenant shall comply with the reasonable rules and regulations established by Landlord with regard to the ATM, the appearance of which shall
at all times be consistent with the first-class nature of the Building. Prior to the expiration or earlier termination of this Lease, Tenant shall, at its sole cost and expense, remove the ATM and
shall repair any and all damage to the Premises, Building and Real Property resulting from such removal. Tenant's right to the ATM, as set forth in this Section 5.7, shall be personal to the
Original Tenant and may not be utilized by any assignee, sublessee or other transferee of the Original Tenant's interest in this Lease or the Premises. 

    5.8  Exclusive Use.  Subject to the terms of this Section 5.8, Landlord shall not, following the
date hereof, directly lease any space on the ground floor of the Building to a retail bank, retail savings and loan office, or retail credit union office (in any such instances, a "Retail Bank") for
the purposes of operating a retail bank, retail savings and loan office, or retail credit union office (in any such instance, "Retail Banking Purpose"). The foregoing restriction is not intended to
and shall not restrict the leasing by Landlord of ground floor space in the Building to any entity for any purpose other than Retail Banking Purposes. In addition, Landlord shall use commercially
reasonable efforts (not including litigation) to withhold its consent to any assignment or sublease of space on the ground floor of the Building to a Retail Bank which shall utilize the subject space
for Retail Banking Purposes so long as Landlord is entitled to withhold such consent pursuant to the terms of the applicable lease. Landlord's agreement to restrict its leasing activities as set forth
in this Section 5.8 is specifically subject to all existing and subsequently adopted laws which prohibit or modify such restriction and is not applicable to existing tenants' leases. The
foregoing rights of Tenant shall terminate (i) upon the occurrence of an uncured event of default under this Lease by Tenant (after the lapse of all applicable notice and cure periods), or
(ii) at such time as Tenant fails to use the entire Premises for Retail Banking Purposes for a period of thirty (30) days or longer. The provisions of this Section 5.8 shall apply
only to the Original Tenant or a Permitted Assignee which is a Retail Bank conducting Retail Banking Purposes at the 

14

 

Premises, and not any other assignee, sublessee, or other transferee of the Original Tenant's interest in this Lease. 

6.  SERVICES AND UTILITIES.  

    6.1  Standard Tenant Services.  Landlord shall provide the following services and utilities on all days
(unless otherwise stated below). 

    6.1.1    Subject
to reasonable change implemented by Landlord and all governmental rules, regulations and guidelines applicable thereto, Landlord shall provide heating
and air conditioning when necessary for normal comfort for normal office use in the Premises ("HVAC") form Monday through Friday from 8:00 a.m. to 6:00 p.m., and on Saturday from
9:00 a.m. to 1:00 p.m. (Collectively, the "Building Hours"), except for the date of observation of locally recognized holidays (collectively, the "Holidays"). 

    6.1.2    Landlord
shall provide adequate electrical wiring and facilities for connection to Tenant's lighting fixtures and incidental use equipment, provided that the
connected electrical load of the incidental use equipment and lighting fixtures does not exceed an average of four (4) watts per usable square foot of the Premises during the Building Hours,
calculated on a monthly basis, and the electricity so furnished for incidental use equipment and lighting fixtures will be at a nominal one hundred ten (110) volts and no electrical circuit for
the supply of incidental use equipment will require a current capacity exceeding twenty (20) amperes. Landlord shall, as an Operating Expense, also provide (i) city water for use in
connection with any plumbing fixtures now or hereafter installed in the Building in accordance with this Lease, (ii) janitorial services five (5) days per week except the date of
observation of the holidays, in and about the Premises, which services shall be performed by a bonded company consistent with those employed by buildings comparable to and in the vicinity of the
Building, and (iii) nonexclusive automatic passenger elevator service at all times. If Tenant, with Landlord's prior written consent, uses electricity, water or heat or air conditioning in
excess of that supplied by Landlord pursuant to this Section 6.1 of this Lease ("Excessive Use"), Tenant shall pay to Landlord, upon billing, the
cost of such excess consumption, the cost of the installation, operation, and maintenance of equipment which is installed in order to supply such excess consumption, and the cost of the increased wear
and tear on existing equipment caused such excess consumption. Landlord may, at its sole option, at any time during the Lease Term, install devices to separately meter Tenant's use of utilities and in
such event Tenant shall pay the cost of Tenant's Excessive Use, on demand, as well as the cost of such additional metering devices; provided, however, that (i) the cost to Tenant for the
additional metering devices shall in no event exceed an amount equal to One Thousand Two Hundred and No/100 Dollars ($1,200.00); and (ii) in the event Landlord elects to separately meter the
Premises in accordance with the terms of this Section 6.1.2, and such meter indicates no Excessive Use by Tenant on an average basis during the next succeeding three (3) month period,
the cost of such additional metering devices shall be paid for by Landlord. If any lights, machines or equipment (including, but not limited to, computers) are used by Tenant in the Premises which
materially affect the temperature otherwise maintained by the air conditioning system, or generates substantially more heat in the Premises than would be generated by the Building standard lights and
usual fractional horsepower office equipment, Landlord shall have the right to install any machinery and equipment which Landlord reasonably deems necessary to restore temperature balance, including,
but not limited to, modifications to the standard air conditioning equipment and the cost thereof, including the cost of installation and any additional cost of operation and maintenance occasioned
thereby, shall be paid by Tenant to Landlord upon demand of Landlord. Landlord shall replace Building standard light bulbs in the Premises as required from time to time, the cost of which shall be
included in Operating Expenses. 

15

 

    6.2  After-Hours Use.  Upon reasonable notice but in any event not less than twenty-four
(24) hours prior notice by Tenant to Landlord, Landlord shall provide heat, ventilation cooling and electricity outside Business Hours (the "After-Hours Use"). Tenant shall pay Landlord upon
demand for any such After-Hours Use at the rate generally charged by Landlord to tenants of the Building for After-Hours Use: provided, however, that in no event shall the cost of After-Hours Use for
HVAC exceed the sum of (i) Fifty Dollars ($50.00) per hour, and (ii) the amount of any increase occurring after the date of this Lease in the actual cost to Landlord of providing such
HVAC services. Subject to the terms of this Lease, HVAC and electricity shall be available to Tenant twenty-four (24) hours a day, seven (7) days a week. 

    6.3  Interruption of Use.  Tenant agrees that Landlord shall not be liable for damages, by abatement of
Rent (except as specifically provided in Section 6.4, below) or otherwise, for failure to furnish or delay in furnishing any service (including telephone and telecommunication services), or for
any diminution in the quality or quantity thereof, when such failure or delay or diminution is occasioned, in whole or in part, by repairs, replacements, or improvements, by any strike, lockout or
other labor trouble, by inability to secure electricity, gas, water, or other fuel at the Building after reasonable effort to do so, by any accident or casualty whatsoever, by act or default of Tenant
or other parties, or by any other
cause; and such failures or delays or diminution shall never be deemed to constitute an eviction or disturbance of Tenant's use and possession of the Premises or relieve Tenant from paying rent
(except as specifically provided in Section 6.4, below) or performing any of its obligations under this Lease. Furthermore, Landlord shall not be liable under any circumstances for a loss of,
or injury to, property or for injury to, or interference with, Tenant's business, including, without limitation, loss of profits, however occurring, through or in connection with or incidental to a
failure to furnish any services or utilities. 

    6.4  Abatement of Rent.  In the event that Tenant is prevented from using, and does not use, the Premises
or any portion thereof, as a result of any failure to provide services or utilities as required by this Lease, which substantially interferes with Tenant's use of the Premises (an "Abatement Event"),
then Tenant shall give Landlord notice of such Abatement Event, and if such Abatement Event continues for five (5) consecutive business days after Landlord's receipt of any such notice (the
"Eligibility Period"), then the Base Rent and Tenant's Share of Direct Expenses shall be abated or reduced, as the case may be, after expiration of the Eligibility Period for such time that Tenant
continues to be so prevented from using, and does not use, the Premises or a portion thereof, in the proportion that the rentable area of the portion of the Premises that Tenant is prevented from
using, and does not use, bears to the total rentable area of the Premises; provided, however, in the event that Tenant is prevented from using, and does not use, a portion of the Premises for a period
of time in excess of the Eligibility Period and the remaining portion of the Premises is not sufficient to allow Tenant to effectively conduct its business therein, and if Tenant does not conduct its
business from such remaining portion, then for such time after expiration of the Eligibility Period during which Tenant is so prevented from effectively conducting its business therein, the Base Rent
and Tenant's Share of Direct Expenses for the entire Premises shall be abated for such time as Tenant continues to be so prevented from using, and does not use, the Premises. If, however, Tenant
reoccupies any portion of the Premises during such period, the rent allocable to such reoccupied portion, based on the proportion that the rentable area of such reoccupied portion of the Premises
bears to the total rentable area of the Premises, shall be payable by Tenant from the date Tenant reoccupies such portion of the Premises. Such right to abate Base Rent and Tenant's Share of Direct
Expenses shall be Tenant's sole and exclusive remedy at law or in equity for an Abatement Event. Except as provided in this Section 6.4, nothing contained herein shall be interpreted to mean
that Tenant is excused from paying Rent due hereunder. Nothing contained in this Section 6.4 shall limit or modify Tenant's right to rent abatement in connection with a casualty as set forth in
Section 11.1 of this Lease. 

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7.  REPAIRS.  Landlord shall be responsible for repairs to the exterior walls, foundation and roof of the Building, the
structural portions of the floors of the Building, and the base building systems and equipment of the Building (including the base building plumbing, electrical and HVAC systems), except to the extent
that such repairs are required due to the negligence or willful misconduct of Tenant; provided, however, that if such repairs are due to the negligence or willful misconduct of Tenant, Landlord shall
nevertheless make such repairs at Tenant's expense, or, if covered by Landlord's insurance, Tenant shall only be obligated to pay any deductible in connection therewith. Tenant shall, at Tenant's own
expense, pursuant to the terms of this Lease, including Article 8 hereof, keep the Premises, including all improvements, fixtures, furnishings and equipment therein, in good order, repair and
condition at all times during the Lease Term. In addition, Tenant shall, at Tenant's own expense but under the supervision and subject to the prior approval of Landlord, and within any reasonable
period of time specified by Landlord, pursuant to the terms of this Lease, including Article 8 hereof, promptly and adequately repair all damage to the Premises and replace or repair all
damaged or broken fixtures and appurtenances; provided however, that, at Landlord's option if Tenant fails to make such repairs, Landlord may, but need not, make such repairs and replacements, and
Tenant shall pay Landlord the cost thereof, including a percentage of the cost thereof (to be uniformly established for the Building) sufficient to reimburse Landlord for all overhead, general
conditions, fees and other costs or expenses arising from Landlord's involvement with such repairs and replacements forthwith upon being billed for same. Landlord may, but shall not be required to,
enter the Premises at all reasonable times to make such repairs, alterations, improvements and additions to the Premises or to the Building or to any equipment located in the Building as Landlord
shall desire or deem necessary or as Landlord may be required to do by governmental or quasi-governmental authority or court order or decree. Tenant hereby waives and releases its right to make
repairs at Landlord's expense under Sections 1941 and 1942 of the California Civil Code, or under any similar law, statute, or ordinance now or hereafter in effect. 

8.  ADDITIONS AND ALTERATIONS.  

    8.1  Landlord's Consent to Alterations.  Tenant may not make any improvements, alterations, additions or
changes to the Premises (collectively, the "Alterations") without first procuring the prior written consent of Landlord to such Alterations, which consent shall be requested by Tenant not less than
thirty (30) days prior to the commencement thereof, and which consent shall not be unreasonably withheld by Landlord. Notwithstanding the foregoing, Landlord may withhold its consent for any
reason, in its sole discretion, to any Alterations which are or may be visible from the exterior of the Premises or Building. Notwithstanding anything in this Section 8.1 to the contrary,
Tenant shall be permitted to make purely cosmetic Alterations following five (5) business days notice to Landlord, but without Landlord's consent, to the extent that such Alterations do not
(i) involve the expenditure of more than $15,000.00 in the aggregate per Alteration, nor (ii) affect the exterior appearance of the Building, the structural portions of the Building, or
the systems and equipment in the Building. 

    8.2  Manner of Construction.  Landlord may impose, as a condition of its consent to all Alterations or
repairs of the Premises or about the Premises, such requirements as Landlord in its sole discretion may deem desirable, including, but not limited to, the requirement that upon Landlord's request,
Tenant shall, at Tenant's expense, remove such Alterations upon the expiration or any early termination of the Lease Term, and/or the requirement that Tenant utilize for such purposes only
contractors, materials, mechanics and materialmen selected by Landlord. Landlord's approval of the plans, specifications and working drawings for Tenant's Alterations shall create no responsibility or
liability on the part of Landlord for their completeness, design sufficiency, or compliance with all laws, rules and regulations of governmental agencies or authorities. All work with respect to any
Alterations must be done in a good and workmanlike manner in compliance with all applicable laws and with Landlord's construction rules and regulations, and diligently prosecuted to completion to the
end that the Premises shall at all times be a complete unit except during the period of work. In the event Tenant 

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performs any Alterations in the Premises which require or give rise to governmentally required changes to the "Base Building," as that term is defined below, then Landlord shall, at Tenant's expense,
make such changes to the Base Building. The "Base Building" shall include the structural portions of the Building, and the public restrooms and the systems and equipment located in the internal core
of the Building on the floor or floors on which the Premises are located. If any Alterations will involve the use of or disturb hazardous materials or substances existing in the Premises, Tenant shall
comply with Landlord's rules and regulations concerning such hazardous materials or substances. In performing the work of any such Alterations, Tenant shall have the work performed in such manner as
not to obstruct access to the Building or the common areas for any other tenant of the Building, and as not to obstruct the business of Landlord or other tenants in the Building, or interfere with the
labor force working in the Building. In the event that Tenant makes any Alterations, Tenant agrees to carry "Builder's All Risk" insurance in an amount approved by Landlord covering the construction
of such Alterations, and such other insurance as Landlord may require, it being understood and agreed that all of such Alterations shall be insured by Tenant pursuant to  Article 10 of this Lease
immediately upon completion thereof. In addition, Landlord may, in its discretion, require Tenant to obtain a lien and
completion bond or some alternate form of security satisfactory to Landlord in an amount sufficient to ensure the lien-free completion of such Alterations and naming Landlord as a
co-obligee. Upon completion of any Alterations, Tenant agrees to cause a Notice of Completion to be recorded in the office of the Recorder of the county in which the Building is located in
accordance with Section 3093 of the Civil Code of the State of California or any successor statute, and Tenant shall deliver to the Building management office a reproducible copy of the "as
built" drawings of the Alterations. 

    8.3  Payment for Improvements.  In the event Tenant orders any Alteration or repair work directly from
Landlord, or from the contractor selected by Landlord, the charges for such work shall be deemed Additional Rent under this Lease, payable upon billing therefor, either periodically during
construction or upon the substantial completion of such work, at Landlord's option. Upon completion of such work, Tenant shall deliver to Landlord, if payment is made directly to contractors, evidence
of payment, contractors' affidavits and full and final waivers of all liens for labor, services or materials. Whether or not Tenant orders any work directly from Landlord, Tenant shall pay to Landlord
a percentage of the cost of such work (such percentage, which shall vary depending upon whether or not Tenant orders the work directly from Landlord, to be established on a uniform basis for the
Building) sufficient to compensate Landlord for all overhead, general conditions, fees and other costs and expenses arising from Landlord's involvement with such work. 

    8.4  Landlord's Property.  All Alterations, improvements, fixtures and/or permanently affixed equipment
which may be installed or placed in or about the Premises, and all signs installed in, on or about the Premises, from time to time, shall be at the sole cost of Tenant and shall be and become the
property of Landlord. Furthermore, Landlord may, by written notice to Tenant delivered at least sixty (60) days prior to the end of the Lease Term, or given upon any earlier termination of this
Lease, require Tenant at Tenant's expense to remove such Alterations and to repair any damage to the Premises and Building caused by such removal. If Tenant fails to complete such removal and/or to
repair any damage caused by the removal of any Alterations, Landlord may do so and may charge the cost thereof to Tenant. Tenant hereby indemnifies and holds Landlord harmless from any liability,
cost, obligation, expense or claim of lien in any manner relating to the installation, placement, removal or financing of any such Alterations, improvements, fixtures and/or equipment in, on or about
the Premises. 

9.  COVENANT AGAINST LIENS.  Tenant has no authority or power to cause or permit any lien or encumbrance of any kind
whatsoever, whether created by act of Tenant, operation of law or otherwise, to attach to or be placed upon the Real Property, Building or Premises, and any and all liens and encumbrances created by
Tenant shall attach to Tenant's interest only. Landlord shall have the right at all times to post and keep posted on the Premises any notice which it deems necessary for protection 

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from such liens. Tenant covenants and agrees not to suffer or permit any lien of mechanics or materialmen or others to be placed against the Real Property, the Building or the Premises with respect to
work or services claimed to have been performed for or materials claimed to have been furnished to Tenant or the Premises, and, in case of any such lien attaching or notice of any lien, Tenant
covenants and agrees to cause it to be immediately released and removed of record. Notwithstanding anything to the contrary set forth in this Lease, in the event that such lien is not released and
removed on or before the date notice of such lien is delivered by Landlord to Tenant, Landlord, at its sole option, may immediately take all action necessary to release and remove such lien, without
any duty to investigate the validity thereof, and all sums, costs and expenses, including reasonable attorneys' fees and costs, incurred by Landlord in connection with such lien shall be deemed
Additional Rent under this Lease and shall immediately be due and payable by Tenant. 

10.  INSURANCE.  

    10.1  Indemnification and Waiver.  To the extent not prohibited by law, Landlord, its partners and their
respective officers, agents, servants, employees, and independent contractors (collectively, "Landlord Parties") shall not be liable for any damage either to person or property or resulting from the
loss of use thereof, which damage is sustained by Tenant or by other persons claiming through Tenant. Tenant shall indemnify, defend, protect, and hold harmless Landlord Parties from any and all loss,
cost, damage, expense and liability (including without limitation court costs and reasonable attorneys' fees) incurred in connection with or arising from any cause in, on or about the Premises, any
acts, omissions or negligence of Tenant or of any person claiming by, through or under Tenant, or of the contractors, agents, servants, employees, invitees, guests or licensees of Tenant or any such
person, in, on or about the Building or Real Property, or any breach of the terms of this Lease, either prior to, during, or after the expiration of the Lease Term, provided that the terms of the
foregoing indemnity shall not apply to the gross negligence or willful misconduct of Landlord. The provisions of this Section 10.1 shall survive
the expiration or sooner termination of this Lease with respect to any claims or liability occurring prior to such expiration or termination. 

    10.2  Landlord's Liability and Fire and Casualty Insurance.  Landlord shall carry commercial general
liability insurance with respect to the Building during the Lease Term, and shall further insure the Building during the Lease Term against loss or damage due to fire and other casualties covered
within the classification of fire and extended coverage, vandalism coverage and malicious mischief, sprinkler leakage, water damage and special extended coverage. Such coverage shall be in such
amounts, from such companies, and on such other terms and conditions, as Landlord may from time to time reasonably determine. Additionally, at the option of Landlord, such insurance coverage may
include the risks of earthquakes and/or flood damage and additional hazards, a rental loss endorsement and one or
more loss payee endorsements in favor of the holders of any mortgages or deeds of trust encumbering the interest of Landlord in the Building or the ground or underlying lessors of the Building, or any
portion thereof. Notwithstanding the foregoing provisions of this Section 10.2, the coverage and amounts of insurance carried by Landlord in connection with the Building shall, at a minimum, be
comparable to the coverage and amounts of insurance which are carried by reasonably prudent landlords of comparable buildings in the vicinity of the Building (provided that in no event shall Landlord
be required to carry earthquake insurance). Tenant shall, at Tenant's expense, comply as to the Premises with all insurance company requirements pertaining to the use of the Premises. If Tenant's
conduct or use of the Premises causes any increase in the premium for such insurance policies, then Tenant shall reimburse Landlord for any such increase. Tenant, at Tenant's expense, shall comply
with all rules, orders, regulations or requirements of the American Insurance Association (formerly the National Board of Fire Underwriters) and with any similar body. 

    10.3  Tenant's Insurance.  Tenant shall maintain Commercial General Liability Insurance covering the
insured against claims of bodily injury, personal injury and property damage arising out of Tenant's operations, assumed liabilities or use of the Premises, including a Broad Form Commercial General 

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Liability endorsement covering the insuring provisions of this Lease and the performance by Tenant of the indemnity agreements set forth in  Section 10.1 of this Lease, for limits of liability not
less than $5,000,000.00 for each occurrence and $5,000,000.00 annual aggregate, with a
deductible not in excess of $5,000.00. In addition, Tenant shall carry Physical Damage Insurance covering (i) all office furniture, trade fixtures, office equipment, merchandise and all other
items of Tenant's property on the Premises installed by, for, or at the expense at Tenant, and (ii) all existing and future improvements, alterations and additions to the Premises, including
any improvements, alterations or additions installed at Tenant's request above the ceiling of the Premises or below the floor of the Premises (collectively, "Tenant Improvements"). Such insurance
shall be written on an "all risks" of physical loss or damage basis, for the full replacement cost value new without deduction for depreciation of the covered items and in amounts that meet any
co-insurance clauses of the policies of insurance and shall include a vandalism and malicious mischief endorsement, sprinkler leakage coverage and earthquake sprinkler leakage coverage. 

    10.4  Form of Policies.  The minimum limits of policies of insurance required of Tenant under this Lease
shall in no event limit the liability of Tenant under this Lease. Such insurance shall (i) name Landlord, and any other party it so specifies, as an additional insured; (ii) specifically
cover the liability assumed by Tenant under this Lease, including, but not limited to, Tenant's obligations under Section 10.1 of this Lease;
(iii) be issued by an insurance company having a rating of not less than A-VII in Best's Insurance Guide or which is otherwise acceptable to Landlord and licensed to do business in
the state in which the Building is located; (iv) be primary insurance as to all claims thereunder and provide that any insurance carried by Landlord is excess and is
non-contributing with any insurance requirement of Tenant; (v) provide that said insurance shall not be canceled or coverage changed unless thirty (30) days' prior written
notice shall have been given to Landlord and any mortgages or ground or underlying lessor of Landlord. Tenant shall deliver said policy or policies or certificates thereof to Landlord on or before the
Lease Commencement Date and at least thirty (30) days before the expiration dates thereof. In the event Tenant shall fail to procure such insurance, or to deliver such policies or certificate,
Landlord may, at its option, procure such policies for the account of Tenant, and the cost thereof shall be paid to Landlord as Additional Rent within five (5) days after delivery to Tenant of
bills therefor. 

    10.5  Subrogation.  Landlord and Tenant agree to have their respective insurance companies issuing
property damage insurance waive any rights of subrogation that such companies may have against Landlord or Tenant, as the case may be, so long as the insurance carried by Landlord and Tenant,
respectively, is not invalidated thereby. As long as such waivers of subrogation are contained in their respective insurance policies, Landlord and Tenant hereby waive any right that either may have
against the other on account of any loss or damage to their respective property to the extent such loss or damage is insurable under policies of insurance for fire and all risk coverage, theft, public
liability, or other similar insurance. 

    10.6  Additional Insurance Obligations.  Tenant shall carry and maintain during the entire Lease Term, at
Tenant's sole cost and expense, increased amounts of the insurance required to be carried by Tenant pursuant to this Article 10, and such other reasonable types of insurance coverage and in
such reasonable amounts covering the Premises and Tenant's operations therein, as may be reasonably requested, not more frequently than annually, by Landlord. 

11.  DAMAGE AND DESTRUCTION.  

    11.1  Repair of Damage by Landlord and Tenant.  If the Premises or any common areas of the Building
serving or providing access to the Premises shall be damaged by fire or other casualty, Landlord shall promptly and diligently, subject to reasonable delays for insurance adjustment or other matters
beyond Landlord's reasonable control, and subject to all other terms of this Article 11, restore the base, shell and core of the Premises and
such common areas. Such restoration shall be to 

20

 

substantially the same condition of the base, shell and core of the Premises and common areas prior to the casualty, except for modifications required by zoning and building codes and other laws or by
the holder of a mortgage on the Building, or the lessor of a ground or underlying lease with respect to the Real Property and/or the Building, or any other modifications to the common areas deemed
desirable by Landlord, provided access to the Premises and any common restrooms serving the Premises shall not be materially impaired. Upon the occurrence of any damage to the Premises, Tenant shall
promptly and diligently restore the Premises and return the Tenant Improvements to their original condition; provided that if the cost of such repair by Tenant exceeds the amount of insurance proceeds
received by Tenant from Tenant's insurance carrier, the cost of such repairs shall be paid by Tenant. Amounts to be paid by Tenant for repairs hereunder shall be made by Tenant pursuant to a
disbursement procedure reasonably acceptable to Landlord. Tenant shall, prior to the commencement of construction, submit to Landlord, for Landlord's review and approval, all plans, specifications and
working drawings relating thereto, and Tenant shall select the contractors to perform such improvement work, subject to Landlord's reasonable approval. Landlord shall not be liable for any
inconvenience or annoyance to Tenant or its visitors, or injury to Tenant's business resulting in any way from such damage or the repair
thereof; provided however, that if such fire or other casualty shall have damaged the Premises or common areas necessary to Tenant's occupancy, and if such damage is not the result of the willful
misconduct of Tenant or Tenant's employees, contractors, licensees, or invitees, Landlord shall allow Tenant a proportionate abatement of Rent, during the time and to the extent the Premises are unfit
for occupancy for the purposes permitted under this Lease, and not occupied by Tenant as a result thereof. Tenant's right to rent abatement pursuant to the preceding sentence shall terminate as of the
date which is reasonably determined by Landlord to be the date Tenant should have completed repairs to the Premises assuming Tenant used reasonable due diligence in connection therewith. 

    11.2  Landlord's Option to Repair.  Notwithstanding the terms of  Section 11.1 of this Lease, Landlord may elect not to rebuild and/or restore the
Premises and/or Building and instead terminate this Lease by
notifying Tenant in writing of such termination within sixty (60) days after the date of discovery of such damage, such notice to include a termination date giving Tenant ninety
(90) days to vacate the Premises, but Landlord may so elect only if the Building shall be damaged by fire or other casualty or cause, whether or not the Premises are affected, and one or more
of the following conditions is present: (i) repairs cannot reasonably be completed within one hundred eighty (180) days of the date of discovery of damage (when such repairs are made
without the payment of overtime or other premiums); (ii) the holder of any mortgage on the Building or ground or underlying lessor with respect to the Real Property and/or the Building shall
require that the insurance proceeds or any portion thereof be used to retire the mortgage debt, or shall terminate the ground or underlying lease, as the case may be; or (iii) the damage is not
fully covered, except for deductible amounts, by Landlord's insurance policies; provided, however, that if Landlord does not elect to terminate this Lease pursuant to Landlord's termination right as
provided above, and the repairs cannot, in the reasonable judgment of Landlord, be completed within one hundred eighty (180) days after being commenced, Tenant may elect, no earlier than sixty
(60) days after the date of the damage and not later than ninety (90) days after the date of such damage, to terminate this Lease by written notice to Landlord effective as of the date
specified in the notice, which date shall not be less than thirty (30) days nor more than sixty (60) days after the date such notice is given by Tenant. In addition, in the event that
the Premises or the Building is destroyed or damaged to any substantial extent during the last twelve (12) months of the Lease Term, then notwithstanding anything contained in this  Article 11,
Landlord and Tenant shall each have the option to terminate this Lease by giving written notice to the other party of the exercise of
such option within thirty (30) days after the date of such damage or destruction, in which event this Lease shall cease and terminate as of the date of such notice. Upon any such termination of
this Lease pursuant to this Section 11.2, Tenant shall pay the Base Rent and Additional Rent, properly apportioned up to such date of
termination, and both parties hereto shall thereafter be freed and discharged of all further obligations hereunder, except as provided for in 

21

 

provisions of this Lease which by their terms survive the expiration or earlier termination of the Lease Term. 

    11.3  Waiver of Statutory Provisions.  The provisions of this Lease, including this  Article 11, constitute an express agreement between Landlord
and Tenant with respect to any and all damage to, or destruction of, all or any part
of the Premises, the Building or any other portion of the Real Property, and any statute or regulation of the state in which the Building is located, including, without limitation, Sections 1932(2)
and 1933(4) of the California Civil Code, with respect to any rights or obligations concerning
damage or destruction in the absence of an express agreement between the parties, and any other statute or regulation, now or hereafter in effect, shall have no application to this Lease or any damage
or destruction to all or any part of the Premises, the Building or any other portion of the Real Property. 

12.  NONWAIVER.  No waiver of any provision of this Lease shall be implied by (i) any failure of either party to
insist in any instance on the strict keeping, observance or performance of any covenant or agreement contained in this Lease or exercise any election contained in this Lease, or (ii) any
failure of either party to enforce any remedy on account of the violation of such provision, even if such violation shall continue or be repeated subsequently. Any waiver by either party of any
provision of this Lease may only be in writing, and no express waiver shall affect any provision other than the one specified in such waiver and that one only for the time and in the manner
specifically stated. 

13.  CONDEMNATION.  If the whole or any part of the Premises or Building shall be taken by power of eminent domain or
condemned by any competent authority for any public or quasi-public use or purpose, or if any adjacent property or street shall be so taken or condemned, or reconfigured or vacated by such authority
in such manner as to require the use, reconstruction or remodeling of any part of the Premises or Building, or if Landlord shall grant a deed or other instrument in lieu of such taking by eminent
domain or condemnation, Landlord shall have the option to terminate this Lease upon ninety (90) days' notice, provided such notice is given no later than one hundred eighty (180) days
after the date of such taking, condemnation, reconfiguration, vacation, deed or other instrument. If a substantial portion of the Premises is taken which results in substantial interference with
Tenant's use of the Premises, or if access to the Premises is substantially impaired, in each case for a period in excess of one hundred eighty (180) days, Tenant shall have the option to
terminate this Lease upon ninety (90) days' notice, provided such notice is given no later than two hundred ten (210) days after the date of such taking. Landlord shall be entitled to
receive the entire award or payment in connection therewith, except that Tenant shall have the right to file any separate claim available to Tenant for any taking of Tenant's personal property and
fixtures belonging to Tenant and removable by Tenant upon expiration of the Lease Term pursuant to the terms of this Lease, and for moving expenses, so long as such claim does not diminish the award
available to Landlord, its ground lessor with respect to the Real Property or its mortgagee, and such claim is payable separately to Tenant. All Rent shall be apportioned as of the date of such
termination, or the date of such taking, whichever shall first occur. If any part of the Premises shall be taken, and this Lease shall not be so terminated, the Rent shall be proportionately abated.
Tenant hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of the California Code of Civil Procedure. 

14.  ASSIGNMENT AND SUBLETTING.  

    14.1  Transfers.  Tenant acknowledges that the economic concessions and rental rates set forth in this
Lease were negotiated by Landlord and Tenant in consideration of, and would not have been granted by Landlord but for (i) the high quality, first class, reputation of the Tenant in banking
operations (it being acknowledged that Landlord's primary concern is with the quality and reputation of the retail operations located on the Real Property and, therefore, the character and quality of
Tenant's operation are of paramount concern to Landlord), and (ii) the specific nature of the leasehold interest granted to Tenant hereunder, as such interest is limited and defined by various
provisions throughout 

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this Lease, including, but not limited to, the provisions of this Article 14 which define and limit the transferability of such leasehold interest. Accordingly, based upon the foregoing,
Landlord and Tenant have agreed to the provisions of this Article 14, and have agreed that Tenant shall not have the right or power to assign, mortgage, pledge, encumber or otherwise transfer,
this Lease or any interest hereunder, permit any assignment or other such foregoing transfer of this Lease or any interest hereunder by operation of law, or sublet the Premises or any part thereof
(all of the foregoing are hereinafter sometimes referred to collectively as "Transfers" and any person to whom any Transfer is made or sought to be made is hereinafter sometimes referred to as a
"Transferee"), without first procuring the written consent of Landlord, which consent may be withheld in Landlord's sole and absolute discretion. To request Landlord's consent to any Transfer, Tenant
shall notify Landlord in writing, which notice (the "Transfer Notice") shall include (i) the proposed effective date of the Transfer, which shall not be less than forty-five
(45) days after the date of delivery of the Transfer Notice, (ii) a description of the portion of the Premises to be transferred (the "Subject Space"), (iii) all of the terms of
the proposed Transfer and the consideration therefor, including a calculation of the "Transfer Premium," as that term is defined in Section 14.3  below, in connection with such Transfer, the name
and address of the proposed Transferee, and a copy of all existing and/or proposed documentation pertaining to the proposed
Transfer, including all existing operative documents to be executed to evidence such Transfer or the agreements incidental or related to such Transfer, (iv) current financial statements of the
proposed Transferee certified by an officer, partner or owner thereof, and any other information required by Landlord, which will enable Landlord to determine the financial responsibility, character,
and reputation of the proposed Transferee, nature of such Transferee's business and proposed use of the Subject Space, and such other information as Landlord may reasonably require, and (v) an
executed estoppel certificate from Tenant in the form attached hereto as Exhibit E. Any Transfer made without Landlord's prior written consent shall, at Landlord's option, be null, void and of
no effect, and shall, at Landlord's option, constitute a default by Tenant under this Lease. Whether or not Landlord shall grant consent, Tenant shall pay Landlord's review and processing fees, as
well as any reasonable legal fees incurred by Landlord, in an amount not to exceed $1,500.00 for a Transfer in the ordinary course of business, within thirty (30) days after written request by
Landlord. 

    14.2  Landlord's Consent.  If Landlord consents to any Transfer pursuant to the terms of this
Section 14.2 (and does not exercise any recapture rights Landlord may have under Section 14.4 of this Lease), Tenant may within six (6) months after Landlord's consent, but not
later than the expiration of said six-month period, enter into such Transfer of the Premises or portion thereof, upon substantially the same terms and conditions as are set forth in the
Transfer Notice furnished by Tenant to Landlord pursuant to Section 14.1 of this Lease. Tenant shall indemnify, defend and hold harmless Landlord from any and all liability, losses, claims,
damages, costs, expenses, causes of action and proceedings involving any third party or parties (including without limitation Tenant's proposed subtenant or assignee) who claims they were damaged by
Landlord's wrongful withholding or conditioning of Landlord's consent. 

    14.3  Transfer Premium.  If Landlord consents to a Transfer, as a condition thereto which the parties
hereby agree is reasonable, Tenant shall pay to Landlord fifty percent (50%) of any "Transfer Premium," as that term is defined in this  Section 14.3, received by Tenant from such Transferee.
"Transfer Premium" shall mean all rent, additional rent or other consideration payable by
such Transferee in excess of the Rent and Additional Rent payable by Tenant under this Lease on a per rentable square foot basis if less than all of the Premises is transferred. "Transfer Premium"
shall also
include, but not be limited to, key money and bonus money paid by Transferee to Tenant in connection with such Transfer, and any payment in excess of fair market value for services rendered by Tenant
to Transferee or for assets, fixtures, inventory, equipment, or furniture transferred by Tenant to Transferee in connection with such Transfer. 

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    14.4  Landlord's Option as to Subject Space.  Notwithstanding anything to the contrary contained in this  Article 14, Landlord shall have the option, by giving written notice to Tenant within thirty (30) days after receipt of any Transfer
Notice, to recapture the Subject Space. Such recapture notice shall cancel and terminate this Lease with respect to the Subject Space as of the effective date of the proposed Transfer. In the event of
a recapture by Landlord, if this Lease shall be canceled with respect to less than the entire Premises, the Rent reserved herein shall be prorated on the basis of the number of rentable square feet
retained by Tenant in proportion to the number of rentable square feet contained in the Premises, and this Lease as so amended shall continue thereafter in full force and effect, and upon request of
either party, the parties shall execute written confirmation of the same. 

    14.5  Effect of Transfer.  If Landlord consents to a Transfer, (i) the terms and conditions of
this Lease shall in no way be deemed to have been waived or modified, (ii) such consent shall not be deemed consent to any further Transfer by either Tenant or a Transferee, (iii) Tenant
shall deliver to Landlord, promptly after execution, an original executed copy of all documentation pertaining to the Transfer in form reasonably acceptable to Landlord, (iv) Tenant shall
furnish upon Landlord's request a complete statement, certified by an independent certified public accountant, or Tenant's chief financial officer, setting forth in detail the computation of any
Transfer Premium Tenant has derived and shall derive from such Transfer, and (v) no Transfer relating to this Lease or agreement entered into with respect thereto, whether with or without
Landlord's consent, shall relieve Tenant or any guarantor of the Lease from liability under this Lease. Landlord or its authorized representatives shall have the right at all reasonable times to audit
the books, records and papers of Tenant relating to any Transfer, and shall have the right to make copies thereof. If the Transfer Premium respecting any Transfer shall be found understated, Tenant
shall, within thirty (30) days after demand, pay the deficiency and Landlord's costs of such audit, and if understated by more than ten percent (10%), Landlord shall have the right to cancel
this Lease upon thirty (30) days' notice to Tenant. 

    14.6  Non-Transfers.  Notwithstanding anything to the contrary contained in this Lease,
neither (i) an assignment to a tranferee of all or substantially all of the assets of Tenant, (ii) an assignment of the Premises to a transferee which is the resulting entity of a merger
or consolidation of Tenant with another entity, nor (iii) an assignment or subletting of all or a portion of the Premises to an affiliate of Tenant (an entity which is controlled by, controls,
or is under common control with, Tenant), shall be deemed a Transfer under Article 14 of this Lease, provided that Tenant notifies Landlord of
any such assignment or sublease and promptly supplies Landlord with any documents or information reasonably requested by Landlord regarding such transfer or transferee as set forth in items
(i) through (iii) above, and provided that such assignment or sublease is not a subterfuge by Tenant to avoid its obligations under this Lease. "Control," as used in this
Section 14.6, shall mean the ownership, directly or indirectly, of at least fifty-one percent (51%) of the voting securities of, or possession of the right to vote, in the ordinary
direction of its affairs, of at least fifty-one percent (51%) of the voting interest in, any person or entity. 

15.  OWNERSHIP AND REMOVAL OF TRADE FIXTURES.  

    15.1  Surrender of Premises.  No act or thing done by Landlord or any agent or employee of Landlord
during the Lease Term shall be deemed to constitute an acceptance by Landlord of a surrender of the Premises unless such intent is specifically acknowledged in a writing signed by Landlord. The
delivery of keys to the Premises to Landlord or any agent or employee of Landlord shall not constitute a surrender of the Premises or effect a termination of this Lease, whether or not the keys are
thereafter retained by Landlord, and notwithstanding such delivery Tenant shall be entitled to the return of such keys at any reasonable time upon request until this Lease shall have been properly
terminated. 

    15.2  Removal of Tenant Property by Tenant.  Upon the expiration of the Lease Term, or upon any earlier
termination of this Lease, Tenant shall, subject to the provisions of this Article 15, quit and surrender possession of the Premises to Landlord
in as good order and condition as when Tenant took 

24

 

possession and as thereafter improved by Landlord and/or Tenant, reasonable wear and tear excepted. Upon such expiration or termination, Tenant shall, without expense to Landlord, remove or cause to
be removed from the Premises all debris and rubbish, and such items of furniture, equipment, free-standing cabinet work, and other articles of personal property owned by Tenant or
installed or placed by Tenant at its expense in the Premises, and such similar articles of any other persons claiming under Tenant, as Landlord may, in its sole discretion, require to be removed, and
Tenant shall repair at its own expense all damage to the Premises and Building resulting from such removal. 

16.  HOLDING OVER.  If Tenant holds over after the expiration of the Lease Term hereof, with or without the express or
implied consent of Landlord, such tenancy shall be from month-to-month only, and shall not constitute a renewal hereof or an extension for any further term, and in such case
Base Rent shall be payable at a monthly rate equal to one hundred fifty percent (150%) of the Base Rent applicable during the last rental period of the Lease Term under this Lease. Such
month-to-month tenancy shall be subject to every other term, covenant and agreement contained herein. Nothing contained in this  Article 16 shall be construed as consent by Landlord to any holding
over by Tenant, and Landlord expressly reserves the right to require Tenant
to surrender possession of the Premises to Landlord as provided in this Lease upon the expiration or other termination of this Lease. The provisions of this  Article 16 shall not be deemed to limit
or constitute a waiver of any other rights or remedies of Landlord provided herein or at law. If Tenant
fails to surrender the Premises upon the termination or expiration of this Lease, in addition to any other liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold
Landlord harmless from all loss, costs (including reasonable attorneys' fees) and liability resulting from such failure, including, without limiting the generality of the foregoing, any claims made by
any succeeding tenant founded upon such failure to surrender, and any lost profits to Landlord resulting therefrom. 

17.  ESTOPPEL CERTIFICATES.  Within ten (10) days following a request in writing by Landlord, Tenant shall execute
and deliver to Landlord an estoppel certificate, which, as submitted by Landlord, shall be substantially in the form of Exhibit E, attached
hereto, (or such other form as may be required by any prospective mortgagee or purchaser of the Project, or any portion thereof), indicating therein any
exceptions thereto that may exist at that time, and shall also contain any other information reasonably requested by Landlord or Landlord's mortgagee or prospective mortgagee. Tenant shall execute and
deliver any other instruments which may be reasonably required for such purposes. Failure of Tenant to timely execute and deliver such estoppel certificate or other instruments shall constitute an
acceptance of the Premises and an acknowledgment by Tenant that statements included in the estoppel certificate are true and correct, without exception. 

18.  SUBORDINATION.  This Lease is subject and subordinate to all present and future ground or underlying leases of the
Real Property and to the lien of any mortgages or trust deeds, now or hereafter in force against the Real Property and the Building, if any, and to all renewals, extensions, modifications,
consolidations and replacements thereof, and to all advances made or hereafter to be made upon the security of such mortgages or trust deeds, unless the holders of such mortgages or trust deeds, or
the lessors under such ground lease or underlying leases, require in writing that this Lease be superior thereto. Landlord represents and warrants to Tenant that no deed of trust or mortgage encumbers
Landlord's interest in the Building as of the date of this Lease. In consideration of, and as a condition precedent to, Tenant's agreement to permit its interest pursuant to this Lease to be
subordinated to any particular future ground or underlying lease of the Building or the Real Property or to the lien of any mortgage or trust deed first encumbering Landlord's interest in the Building
or the Real Property following the date of this Lease and to any renewals, extensions, modifications, consolidations and replacements thereof, Landlord shall deliver to Tenant a commercially
reasonable non-disturbance agreement executed by the landlord under such ground lease or underlying lease or the holder of such mortgage or trust deed. Tenant covenants and agrees in the
event any proceedings are brought for the foreclosure of any such mortgage, or if any ground or underlying lease is 

25

 

terminated, to attorn, without any deductions or set-offs whatsoever, to the purchaser upon any such foreclosure sale, or to the lessor of such ground or underlying lease, as the case may
be, if so requested to do so by such purchaser or lessor, and to recognize such purchaser or lessor as the lessor under this Lease. Tenant shall, within five (5) days of request by Landlord,
execute such further instruments or assurances as Landlord may reasonably deem necessary to evidence or confirm the subordination or superiority of this Lease to any such mortgages, trust deeds,
ground leases or underlying leases. Tenant hereby irrevocably authorizes Landlord to execute and deliver in the name of Tenant any such instrument or instruments if Tenant fails to do so, provided
that such authorization shall in no way relieve Tenant from the obligation of executing such instruments of subordination or superiority. 

19.  DEFAULTS; REMEDIES.  

    19.1  Events of Default.  The occurrence of any of the following shall constitute a default of this Lease
by Tenant: 

    19.1.1    Any
failure by Tenant to pay any Rent or any other charge required to be paid under this Lease, or any part thereof, when due; or 

    19.1.2    The
failure by Tenant to observe or perform according to the provisions of Articles 5, 14, 17 or 18 of this Lease where such failure continues for more than two
(2) business days after notice from Landlord; or 

    19.1.3    Any
failure by Tenant to observe or perform any other provision, covenant or condition of this Lease to be observed or performed by Tenant where such failure
continues for fifteen (15) days after written notice thereof from Landlord to Tenant; provided however, that any such notice shall be in lieu of, and not in addition to, any notice required
under California Code of Civil Procedure Section 1161 or any similar or successor law; and provided further that if the nature of such default is such that the same cannot reasonably be cured
within a fifteen (15)-day period, Tenant shall not be deemed to be in default if it diligently commences such cure within such period and thereafter diligently proceeds to rectify and cure
said default as soon as possible; or 

    19.1.4    A
Continuous Operation Failure by Tenant; or 

    19.1.5    Abandonment,
vacation or surrender of the Premises by Tenant. 

    19.2  Remedies Upon Default.  Upon the occurrence of any event of default by Tenant, Landlord shall have,
in addition to any other remedies available to Landlord at law or in equity, the option to pursue any one or more of the following remedies, each and all of which shall be cumulative and nonexclusive,
without any notice or demand whatsoever. 

    19.2.1    Terminate
this Lease, in which event Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may, without prejudice
to any other remedy which it may have for possession or arrearages in rent, enter upon and take possession of the Premises and expel or remove Tenant and any other person who may be occupying the
Premises or any part thereof, without being liable for prosecution or any claim or damages therefor; and Landlord may recover from Tenant the following: (i) the worth at the time of award of
any unpaid rent which has been earned at the time of such termination; plus (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after
termination until the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus (iii) the worth at the time of award of the amount by
which the unpaid rent for the balance of the Lease Term after the time of award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; plus (iv) any other
amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in the ordinary course of 

26

 

things would be likely to result therefrom, specifically including but not limited to, brokerage commissions and advertising expenses incurred, expenses of remodeling the Premises or any portion
thereof for a new tenant, whether for the same or a different use, and any special concessions made to obtain a new tenant; and (v) at Landlord's election, such other amounts in addition to or
in lieu of the foregoing as may be permitted from time to time by applicable law. The term "rent" as used in this Section 19.2 shall be deemed to
be and to mean all sums of every nature required to be paid by Tenant pursuant to the terms of this Lease, whether to Landlord or to others. As used in Paragraphs
19.2.1(i) and (ii), above, the "worth at the time of award" shall be computed by allowing interest at the rate set forth in  Article 25 of this Lease, but in no case
greater than the maximum amount of such interest permitted by law. As used in  Paragraph 19.2.1(iii) above, the "worth at the time of award' shall be computed by discounting such amount at the
discount rate of the
Federal Reserve Bank of San Francisco at the time of award plus one percent (1%). 

    19.3  Sublessees of Tenant.  Whether or not Landlord elects to terminate this Lease on account of any
default by Tenant, as set forth in this Article 19, Landlord shall have the right to terminate any and all subleases, licenses, concessions or
other consensual arrangements for possession entered into by Tenant and affecting the Premises or may, in Landlord' s sole discretion, succeed to Tenant's interest in such subleases, licenses,
concessions or arrangements. In the event of Landlord's election to succeed to Tenant's interest in any such subleases, licenses, concessions or arrangements, Tenant shall, as of the date of notice by
Landlord of such election, have no further right to or interest in the rent or other consideration receivable thereunder. 

    19.4  Waiver of Default.  No waiver by Landlord or Tenant of any violation or breach of any of the terms,
provisions and covenants herein contained shall be deemed or construed to constitute a waiver of any other or later violation or breach of the same or any other of the terms, provisions, and covenants
herein contained. Forbearance by Landlord in enforcement of one or more of the remedies herein provided upon an event of default shall not be deemed or construed to constitute a waiver of such
default. The acceptance of any Rent hereunder by Landlord following the occurrence of any default, whether or not known to Landlord, shall not be deemed a waiver of any such default, except only a
default in the payment of the Rent so accepted. 

20.  FORCE MAJEURE.  Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, inability to
obtain services, labor, or materials or reasonable substitutes therefor, governmental actions, civil commotions, fire or other casualty, and other causes beyond the reasonable control of the party
obligated to perform, except with respect to the obligations imposed with regard to Rent and other charges to be paid by Tenant pursuant to this Lease, except as to Tenant's obligations under Articles
5 and 24 of this Lease (collectively, the "Force Majeure"), notwithstanding anything to the contrary contained in this Lease, shall excuse the performance of such party for a period equal to any such
prevention, delay or stoppage and, therefore, if this Lease specifies a time period for performance of an obligation of either party, that time period shall be extended by the period of any delay in
such party's performance caused by a Force Majeure. 

21.  SECURITY DEPOSIT  Concurrent with Tenant's execution of this Lease, Tenant shall deposit with Landlord a security
deposit (the "Security Deposit") in the amount set forth in Section 11 of the Summary. The Security Deposit shall be held by Landlord as security
for the faithful performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and performed by Tenant
during the Lease Term. If Tenant defaults with respect to any provisions of this Lease, including, but not limited to, the provisions relating to the payment of Rent, Landlord may, but shall not be
required to, use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or for the payment of any amount that Landlord may spend or become
obligated to spend by reason of Tenant's default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant's default. If any portion of the Security Deposit
is so used or 

27

 

applied, Tenant shall, within five (5) days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and
Tenant's failure to do so shall be a default under this Lease. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit, or any balance
thereof, shall be returned to Tenant, or, at Landlord's option, to the last assignee of Tenant's interest hereunder, within sixty (60) days following the expiration of the Lease Term. Tenant
shall not be entitled to any interest on the Security Deposit. 

22.  INTENTIONALLY DELETED.  

23.  SIGNS.  

    23.1  In General.  Subject to the terms hereof, any signs, notices, logos, pictures, names or
advertisements which are installed and that have not been individually approved by Landlord may be removed without notice by Landlord at the sole expense of Tenant. Except as specifically set forth
herein and in Section 23.2, below, Tenant may not install any signs in, on or about the Real Property, Building or Premises, or on any portions thereof or install any signs which are visible
from the exterior of the Premises, the Building, the Real Property or any portion thereof. Without limiting the foregoing, Tenant shall not, without the prior written consent of Landlord, which
consent may be withheld in Landlord's reasonable discretion (sole discretion to the extent the terms of items (A), (B) and (C) below are not satisfied), (i) affix any window or
door lettering, sign decoration or advertising matter or any type of sun screen, tinting, film, solar screen or similar product to any window or door glass of the Premises, or (ii) erect or
install any sign, window or door lettering placard, decoration, or advertising media of any type which is visible from the exterior of the Premises, or erect or install any of the foregoing which are
suspended from the ceiling of the Premises, provided that any such signage must be (A) professionally designed and installed, (B) first-class in nature, and (C) consistent with
signage maintained by other financial institutions in comparable buildings in the vicinity of the Building. Landlord acknowledges that Tenant's signage at the Premises, as of the date of this Lease,
complies with the aforementioned standards. Any permitted sign under this Article 23 shall comply with all applicable ordinances of governmental
and quasi-governmental agencies. All permitted signs shall be maintained by Tenant at its expense in a good and safe condition and appearance. Tenant shall repair any damage to the Premises, inside or
outside, resulting from the erection, maintenance or removal of any signs. 

    23.2  Eyebrow Signage.  Landlord hereby grants the Original Tenant the right to maintain Tenant's
existing sign located between the first and second floors of the Building (the "Eyebrow Sign"). The Eyebrow Sign shall at all times be subject to all applicable governmental laws, rules, regulations,
codes and approvals. Any changes to the content, size, design, specifications, precise location, graphics, materials, colors and other specifications of the Eyebrow Sign shall be subject to the
approval of Landlord, which approval may be withheld in Landlord's sole discretion, and shall be consistent with the exterior design, materials and appearance of the Building and the signage program
of the Building. Tenant shall be responsible for all costs and expenses incurred in connection with the design, construction, installation, repair, operation, maintenance and compliance with laws of
the Eyebrow Sign. Tenant's signage rights set forth in this Section 23.3 shall be personal to the Original Tenant and may not be assigned to any
assignee or sublessee or any other person or entity. In addition, Tenant's signage rights set forth in this Section 23.3 shall terminate at any
time during the Lease Term during which the Original Tenant fails to physically occupy the entire Premises. Upon the expiration of the Lease Term or the earlier termination of Tenant's signage rights
under this Section 23.3, Tenant shall, at Tenant's sole cost and expense, remove the Eyebrow Sign and repair any and all damage to the Building
caused by such removal. 

24.  COMPLIANCE WITH LAW.  Tenant shall not do anything or suffer anything to be done in or about the Premises which will
in any way conflict with any law, statute, ordinance or other 

28

 

governmental rule, regulation or requirement now in force or which may hereafter be enacted or promulgated. At its sole cost and expense, Tenant shall promptly comply with all such governmental
measures. Tenant shall be responsible, at its sole cost and expense, to make all improvements and alterations to the Promises as are required to comply with the governmental rules, regulations,
requirements or standards described in this Article 24. The judgment of any court of competent jurisdiction or the admission of Tenant in any
judicial action, regardless of whether Landlord is a party thereto, that Tenant has violated any of said governmental measures, shall be conclusive of that fact as between Landlord and Tenant. 

25.  LATE CHARGES.  If any installment of Rent or any other sum due from Tenant shall not be received by Landlord or
Landlord's designee within five (5) days after said amount is due, or if any check delivered to Landlord by Tenant shall be returned for insufficient funds, then Tenant shall pay to Landlord a
late charge equal to five percent (5%) of the amount due. In addition to the late charge, in the event any check is returned for insufficient funds, Tenant shall pay to Landlord, as Additional Rent,
the sum of $50.00. The late charge shall be deemed Additional Rent and the right to require it shall be in addition to all of Landlord's other rights and remedies hereunder or at law and shall not be
construed as liquidated damages or as limiting Landlord's remedies in any manner. In addition to the late charge described above, any Rent or other amounts owing hereunder which are not paid when due
shall thereafter bear interest until paid at a rate equal to ten percent (10%) per annum, provided that in no case shall such rate be higher than the highest rate permitted by applicable law. In the
event that more than one (1) check of Tenant is returned for insufficient funds in any twelve (12) month period, Landlord shall have the right to require that any or all subsequent
payments by Tenant to Landlord be in the form of cash, money order, cashier's or certified check drawn on an institution acceptable to Landlord, notwithstanding any prior practice of accepting
payments in any different form. 

26.  LANDLORD'S RIGHT TO CURE DEFAULT; PAYMENTS BY TENANT.  

    26.1  Landlord's Cure.  All covenants and agreements to be kept or performed by Tenant under this Lease
shall be performed by Tenant at Tenant's sole cost and expense and without any reduction of Rent. If Tenant shall fail to perform any of its obligations under this Lease, within a reasonable time
after such performance is required by the terms of this Lease, Landlord may, but shall not be obligated to, after reasonable prior notice to Tenant, make any such payment or perform any such act on
Tenant's part without waiving its right based upon any default of Tenant and without releasing Tenant from any obligations hereunder. 

    26.2  Tenant's Reimbursement.  Except as may be specifically provided to the contrary in this Lease,
Tenant shall pay to Landlord, within fifteen (15) days after delivery by Landlord to Tenant of statements therefor: (i) sums equal to expenditures reasonably made and obligations
incurred by Landlord in connection with the remedying by Landlord of Tenant's defaults pursuant to the provisions of Section 26.1;
(ii) sums equal to all losses, costs, liabilities, damages and expenses referred to in Article 10 of this Lease; and (iii) subject
to the terms of Section 29.18 of this Lease, sums equal to all expenditures made and obligations incurred by Landlord in collecting or attempting to collect the Rent or in enforcing or
attempting to enforce any rights of Landlord under this Lease or pursuant to law, including, without limitation, all legal fees and other amounts so expended. Tenant's obligations under this  Section 26.2 shall survive the expiration or sooner termination of the Lease Term. 

27.  ENTRY BY LANDLORD.  Landlord reserves the right at all reasonable times and upon reasonable notice to the Tenant to
enter the Premises to (i) inspect them; (ii) show the Premises to prospective purchasers, mortgagees or tenants, or to the ground or underlying lessors; (iii) post notices of
nonresponsibility; or (iv) alter, improve or repair the Premises or the Building if necessary to comply with current building codes or other applicable laws, or for structural alterations,
repairs or improvements to the Building. Notwithstanding anything to the contrary contained in this Article 27, Landlord may enter the Premises
at any time to (A) perform services required of Landlord; (B) take 

29

 

possession due to any breach of this Lease in the manner provided herein; and (C) perform any covenants of Tenant which Tenant fails to perform. Any such entries shall be without the abatement
of Rent and shall include the right to take such reasonable steps as required to accomplish the stated purposes. Tenant hereby waives any claims for damages or for any injuries or inconvenience to or
interference with Tenant's business, lost profits, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby. For each of the above purposes, Landlord shall at
all times have a key with which to unlock all the doors in the Premises. In an emergency, Landlord shall have the right to use any means that Landlord may deem proper to open the doors in and to the
Premises. Any entry into the Premises in the manner hereinbefore described shall not be deemed to be a forcible or unlawful entry into, or a detainer of, the Premises, or an actual or constructive
eviction of Tenant from any portion of the Premises. 

28.  TENANT PARKING.  

    28.1  In General.  Tenant shall rent Reserved Spaces in the amount set forth in Section 12 of the
Summary in the Building Parking Area. In addition, Tenant shall have the right to rent Unreserved Passes in the amount set forth in Section 12 of the Summary in the Building Parking Area.
Subject to the foregoing, Tenant shall have the right to increase or decrease the number of Unreserved Passes rented by Tenant upon not less than thirty (30) days notice to Landlord; provided,
however, that Tenant shall have the right to recommence renting previously unrented Unreserved Passes only to the extent the same are available, as determined by Landlord in its reasonable discretion.
Tenant's Reserved Spaces shall be in the following locations: (i) one (1) Reserved Space shall be located in the general reserved parking area; (ii) two (2) Reserved Spaces
shall be located in the visitor reserved parking area; and (iii) one (1) Reserved Space shall be located in the loading area. The particular Reserved Spaces allocated to Tenant shall be
as reasonably designated by Landlord; provided, however, that the one (1) Reserved Space located in the loading area shall be the Reserved Space utilized by Tenant as of the date of this Lease.
Tenant shall pay the prevailing rate charged by Landlord from time to time with respect to the parking spaces and/or passes rented by Tenant, provided that one (1) of Tenant's Reserved Spaces
shall at all times be provided to Tenant free of charge. Tenant shall pay any applicable parking taxes associated with Tenant's parking. Tenant's continued right to use the parking spaces and/or
passes is conditioned upon Tenant abiding by all rules and regulations (the "Parking Rules and Regulations") which are prescribed from time to time for the orderly operation and use of the Building
Parking Area (the current form thereof is attached to this Lease as Exhibit F) and upon Tenant's cooperation in seeing that Tenant's employees and visitors also comply with such rules and
regulations. Landlord specifically reserves the right to change the size, configuration, design, layout, location and all other aspects of the Building Parking Area and Tenant acknowledges and agrees
that Landlord may, without incurring any liability to Tenant and without any abatement of Rent under this Lease, from time to time, close-off or restrict access to the Building Parking
Area, or relocate Tenant's parking spaces to and/or passes other parking structures and/or surface parking areas within a reasonable distance of the Premises, for purposes of permitting or
facilitating any such construction, alteration or improvements with respect to the Building Parking Area or to accommodate or facilitate renovation, alteration, construction or other modification of
other improvements or structures located on the Real Property. Landlord may delegate its responsibilities hereunder to a parking operator in which case such parking operator shall have all the rights
of control attributed hereby to the Landlord and such owner. 

    28.2  Parking Validations.  

    28.2.1  Validation Stamp.  Landlord shall supply Tenant with a "stamp" or other validation system (in
either event, the "Validation Stamp") pursuant to which Tenant may validate its visitors' parking for a period of twenty (20) minutes; provided, however, that in the event that Tenant shall
utilize the Validation Stamp more than four hundred (400) times (the "Permitted Validation Quantity") in any calendar month, then Tenant shall, promptly upon demand by Landlord, pay to Landlord the
prevailing visitor rates associated with such excess usage. In the event that Tenant 

30

 

shall utilize less than the Permitted Validation Quantity in any calendar month, such unused portion thereof shall not carry over to the next or any subsequent calendar month. 

    28.2.2  Validation Stickers.  Tenant shall have the right, at Tenant's sole option, to purchase
validation stickers ("Validation Stickers") from Landlord for distribution to Tenant's visitors. Tenant shall pay to Landlord the prevailing rate charged by Landlord for such Validation Stickers. 

29.  MISCELLANEOUS PROVISIONS.  

    29.1  Binding Effect.  Each of the provisions of this Lease shall extend to and shall, as the case may
require, bind or inure to the benefit not only of Landlord and of Tenant, but also of their respective successors or assigns, provided this clause shall not permit any assignment by Tenant contrary to
the provisions of Article 14 of this Lease. 

    29.2  No Air Rights.  No rights to any view or to light or air over any property, whether belonging to
Landlord or any other person, are granted to Tenant by this Lease. If at any time any windows of the Premises are temporarily darkened or the light or view therefrom is obstructed by reason of any
repairs, improvements, maintenance or cleaning in or about the Building, the same shall be without liability to Landlord and without any reduction or diminution of Tenant's obligations under this
Lease. 

    29.3  Modification of Lease.  Should any current or prospective mortgagee or ground lessor for the
Building require a modification or modifications of this Lease, which modification or modifications will not cause an increased cost or expense to Tenant or in any other way materially and adversely
change the rights and obligations of Tenant hereunder, then and in such event, Tenant agrees that this Lease may be so modified and agrees to execute whatever documents are required therefor and
deliver the same to Landlord within ten (10) days following the request therefor. Should Landlord or any such current or prospective mortgagee or ground lessor require execution of a short form
of Lease for recording, containing, among other customary provisions, the names of the parties, a description of the Premises and the Lease Term, Tenant agrees to execute such short form of Lease and
to deliver the same to Landlord within ten (10) days following the request therefor. 

    29.4  Transfer of Landlord's Interest.  Tenant acknowledges that Landlord has the right to transfer all
or any portion of its interest in the Real Property and Building and in this Lease, and Tenant agrees that in the event of any such transfer, Landlord shall automatically be released from all
liability under this Lease and Tenant agrees to look solely to such transferee for the performance of Landlord's obligations hereunder after the date of transfer. The liability of any transferee of
Landlord shall be limited to the interest of such transferee in the Real Property and Building and such transferee shall be without personal liability under this Lease, and Tenant hereby expressly
waives and releases such personal liability on behalf of itself and all persons claiming by, through or under Tenant. Tenant further acknowledges that Landlord may assign its interest in this Lease to
a mortgage lender as additional
security and agrees that such an assignment shall not release Landlord from its obligations hereunder and that Tenant shall continue to look to Landlord for the performance of its obligations
hereunder. 

    29.5  Prohibition Against Recording.  Except as provided in  Section 29.3 of this Lease, neither this Lease, nor any memorandum, affidavit or other
writing with respect thereto, shall be recorded by Tenant
or by anyone acting through, under or on behalf of Tenant, and the recording thereof in violation of this provision shall make this Lease null and void at Landlord's election. 

    29.6  Relationship of Parties.  Nothing contained in this Lease shall be deemed or construed by the
parties hereto or by any third party to create the relationship of principal and agent, partnership, joint venturer or any association between Landlord and Tenant, it being expressly understood and
agreed that neither the method of computation of Rent nor any act of the parties hereto shall be deemed to create any relationship between Landlord and Tenant other than the relationship of landlord
and tenant. 

31

 

    29.7  Application of Payments.  Landlord shall have the right to apply payments received from Tenant
pursuant to this Lease, regardless of Tenant's designation of such payments, to satisfy any obligations of Tenant hereunder, in such order and amounts as Landlord, in its sole discretion, may elect,
unless Tenant designates in writing how the applicable payment is to be applied. 

    29.8  Time of Essence.  Time is of the essence of this Lease and each of its provisions. 

    29.9  Partial Invalidity.  If any term, provision or condition contained in this Lease shall, to any
extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term, provision or condition to persons or circumstances other than those with respect to which it is
invalid or unenforceable, shall not be affected thereby, and each and every other term, provision and condition of this Lease shall be valid and enforceable to the fullest extent possible permitted by
law. 

    29.10  No Warranty.  In executing and delivering this Lease, Tenant has not relied on any representation,
including, but not limited to, any representation whatsoever as to the amount of any item comprising Additional Rent or the amount of the Additional Rent in the aggregate or that Landlord is
furnishing the same services to other tenants, at all, on the same level or on the same basis, or any warranty or any statement of Landlord which is not set forth herein or in one or more of the
exhibits attached hereto. 

    29.11  Entire Agreement.  It is understood and acknowledged that there are no oral agreements between the
parties hereto affecting this Lease and this Lease supersedes and cancels any and all previous negotiations, arrangements, brochures, agreements and understandings, if any, between the parties hereto
or displayed by Landlord to Tenant with respect to the subject matter thereof, and none thereof shall be used to interpret or construe this Lease. 

    29.12  Right to Lease.  Subject to the terms of Section 5.8 of this Lease, Landlord reserves the
absolute right to effect such other tenancies in the Building as Landlord in the exercise of its sole business judgment shall determine to best promote the interests of the Building. Tenant does not
rely on the fact, nor does Landlord represent, that any specific tenant or type or number of tenants shall, during the Lease Term, occupy any space in the Building. 

    29.13  Waiver of Redemption by Tenant.  Tenant hereby waives for Tenant and for all those claiming under
Tenant all right now or hereafter existing to redeem by order or judgment of any court or by any legal process or writ, Tenant's right of occupancy of the Premises after any termination of this Lease. 

    29.14  Notices.  All notices, demands, statements or communications (collectively, "Notices") given or
required to be given by either party to the other hereunder shall be in writing, shall be sent by United States certified or registered mail, postage prepaid, return receipt requested, or delivered
personally (i) to Tenant at the appropriate address set forth in Section 5 of the Summary, or to such other place as Tenant may from time
to time designate in a Notice to Landlord; or (ii) to Landlord at the addresses set forth in Section 3 of the Summary, or to such other
firm or to such other place as Landlord may from time to time designate in a Notice to Tenant. Any Notice will be deemed given on the date it is mailed as provided in this  Section 29.14 or upon the
date personal delivery is made. If Tenant is notified of the identity and address of Landlord's mortgagee or ground or
underlying lessor, Tenant shall give to such mortgagee or ground or underlying lessor written notice of any default by Landlord under the terms of this Lease by registered or certified mail, and such
mortgagee or ground or underlying lessor shall be given a reasonable opportunity to cure such default prior to Tenant's exercising any remedy available to Tenant. 

    29.15  Landlord Exculpation.  It is expressly understood and agreed that notwithstanding anything in this
Lease to the contrary, and notwithstanding any applicable law to the contrary, the liability of Landlord and the Landlord Parties hereunder (including any successor landlord) and any recourse by
Tenant against Landlord or the Landlord Parties shall be limited solely and exclusively to an amount 

32

 

which is equal to the interest of Landlord in the Building, and neither Landlord, nor any of the Landlord Parties shall have any personal liability therefor, and Tenant hereby expressly waives and
releases such personal liability on behalf of itself and all persons claiming by, through or under Tenant. Neither Landlord, nor any of the Landlord Parties shall have any personal liability therefor,
and Tenant hereby expressly waives and releases such personal liability on behalf of itself and all persons claiming by, through or under Tenant. The limitations of liability contained in this
Section 29.15 shall inure to the
benefit of Landlord's and the Landlord Parties' present and future partners, beneficiaries, officers, directors, trustees, shareholders, agents and employees, and their respective partners, heirs,
successors and assigns. Under no circumstances shall any present or future partner of Landlord (if Landlord is a partnership), or trustee or beneficiary (if Landlord or any partner of Landlord is a
trust), have any liability for the performance of Landlord's obligations under this Lease. Notwithstanding any contrary provision herein, neither Landlord nor the Landlord Parties shall be liable
under any circumstances for injury or damage to, or interference with, Tenant's business, including but not limited to, loss of profits, loss of rents or other revenues, loss of business opportunity,
loss of goodwill or loss of use, in each case, however occurring. 

    29.16  Joint and Several.  If there is more than one Tenant, the obligations imposed upon Tenant under
this Lease shall be joint and several. 

    29.17  Authority.  If Tenant is a corporation or partnership, each individual executing this Lease on
behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do business in the state in which the Building is located and that Tenant has full right
and authority to execute and deliver this Lease and that each person signing on behalf of Tenant is authorized to do so. 

    29.18  Attorneys' Fees.  If either party commences litigation against the other for the specific
performance of this Lease, for damages for the breach hereof or otherwise for enforcement of any remedy hereunder, the parties hereto agree to and hereby do waive any right to a trial by jury and, in
the event of any such commencement of litigation, the prevailing party shall be entitled to recover from the other party such costs and reasonable attorneys' fees as may have been incurred, including
any and all costs incurred in enforcing, perfecting and executing such judgment. 

    29.19  Governing Law.  This Lease shall be construed and enforced in accordance with the laws of the
State of California. 

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

    29.21  Brokers.  Landlord and Tenant warrant to each other that they have had no dealings with any real
estate broker or agent in connection with the negotiation of this Lease, and that they know of no other real estate broker or agent who is entitled to a commission in connection with this Lease,
excepting only the real estate brokers or agents specified in Section 13 of the Summary (the "Brokers"). Each party agrees to indemnify and
defend the other party against and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments, and costs and expenses (including without limitation
reasonable attorneys' fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of the indemnifying party's dealings with any real estate broker or agent,
other than the Brokers. 

    29.22  Independent Covenants.  This Lease shall be construed as though the covenants herein between
Landlord and Tenant are independent and not dependent and Tenant hereby expressly waives the benefit of any statute to the contrary and agrees that if Landlord fails to perform its obligations set
forth herein, Tenant shall not be entitled to make any repairs or perform any acts hereunder at Landlord's expense or to any setoff of the Rent or other amounts owing hereunder against Landlord. 

33

 

    29.23  Building Name and Signage.  Landlord shall have the right at any time to change the name of the
Building and to install, affix and maintain any and all signs on the exterior and on the interior of the Building as Landlord may, in Landlord's sole discretion, desire. Tenant shall not use the name
of the Building or use pictures or illustrations of the Building in advertising or other publicity, without the prior written consent of Landlord, which consent, provided such use is first class in
nature, shall not be unreasonably withheld, conditioned or delayed. 

    29.24  Transportation Management.  Tenant shall fully comply with all present or future programs intended
to manage parking, transportation or traffic in and around the Building, and in connection therewith, Tenant shall take responsible action for the transportation planning and management of all
employees located at the Premises by working directly with Landlord, any governmental transportation management organization or any other transportation-related committees or entities. 

    29.25  Hazardous Material.  Except for general office supplies (i) typically used in an office in
the ordinary course of business (such as copier toner, liquid paper, glue, ink, and cleaning solvents); (ii) used in their designed manner; and (iii) in such amounts customary in the
ordinary course of office business operations, neither Tenant nor its agents, employees, contractors. licensees, sublessees, assignees, concessionaires or invitees (the "Tenant Group") shall use,
handle, store or dispose of any "Hazardous Material," as that term is defined below, in, on, under or about the Premises, the Building or the Real Property. If Tenant fails to comply with the
foregoing restriction, Tenant shall be solely responsible for and shall indemnify, defend and hold Landlord harmless from and against any and all claims, judgments, damages, penalties, fines, costs,
liabilities and losses (including, without limitation, diminution in the value of the Premises, Building or the Real Property, sums paid in settlement of claims, and attorneys' fees, consultant fees
and expert fees) which arise during or after the Lease Term as a result of any contamination directly or indirectly arising from the Tenant Group activities. This indemnification of Landlord by Tenant
includes, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal or restoration work, and shall survive the expiration or earlier
termination of this Lease. Upon Landlord's approval, Tenant shall promptly take all actions, at its sole cost and expense, as are necessary to return the Premises, Building or Real Property to the
condition existing prior to the introduction of any such Hazardous Material. Furthermore, Tenant shall immediately notify Landlord upon receipt of any notice or other communication of any inquiry,
test, investigation or enforcement proceeding concerning the presence of any Hazardous Material on the Premises, Building or Real Property. Tenant acknowledges that Landlord, at Landlord's election,
shall have the sole right, at Tenant's expense, to negotiate, defend, approve and appeal any action taken or order issued by any governmental authority with regard to any
Hazardous Material contamination directly or indirectly arising from the Tenant Group activities. "Hazardous Material" shall mean asbestos, any petroleum fuel, and any hazardous or toxic substance,
material or waste which is or become regulated by any local governmental authority, the State of California or the United States Government or any political subdivision thereof, including, but not
limited to, any material or substance defined as a "hazardous waste", "extremely hazardous waste", "restricted hazardous waste", "hazardous substance", "hazardous material" or "toxic pollutant" under
the California Health and Safety Code and/or under the Comprehensive Environmental Response, Compensation and Liability Act, 42. U.S.C. 9601, et seq.
Tenant acknowledges that Landlord may incur costs (A) for complying with laws, codes, regulations or ordinances relating to Hazardous Material, or (B) otherwise in connection with
Hazardous Material. Tenant agrees that the costs incurred by Landlord with respect to, or in connection with, complying with laws, codes, regulations or ordinances relating to Hazardous Material shall
be an Operating Expense, unless the cost of such compliance, as between Landlord and Tenant, is made the responsibility of Tenant under this Lease. 

    29.26  Intentionally Deleted.  

    29.27  Landlord Renovations.  It is specifically understood and agreed that Landlord has no obligation
and has made no promises to alter, remodel, improve, renovate, repair or decorate the 

34

 

Premises, Building, or any part thereof and that no representations respecting the condition of the Premises or the Building have been made by Landlord to Tenant except as specifically set forth
herein. However, Tenant acknowledges that Landlord is currently renovating or may during the Lease Term renovate, improve, alter, or modify (collectively, the "Renovations") the Building, Premises,
and/or Real Property, including without limitation the Building Parking Area, common areas, systems and equipment, roof, and structural portions of the same. In connection with such Renovations,
Landlord may, among other things, erect scaffolding or other necessary structures in the Building, limit or eliminate access to portions of the Real Property, including portions of the common areas,
or perform work in the Building, which work may create noise, dust or leave debris in the Building. Tenant hereby agrees that such Renovations and Landlord's actions in connection with such
Renovations shall in no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of Rent. Landlord shall have no responsibility or for any reason be liable to Tenant for
any direct or indirect injury to or interference with Tenant's business arising from the Renovations, nor shall Tenant be entitled to any compensation or damages from Landlord for loss of the use of
the whole or any part of the Premises or of Tenant's personal property or improvements resulting from the Renovations or Landlord's actions in connection with such Renovations, or for any
inconvenience or annoyance occasioned by such Renovations or Landlord's actions in connection with such Renovations. Notwithstanding anything to the contrary contained herein, in connection with any
Renovations, Landlord shall use commercially reasonable efforts to minimize interference with Tenant's use of, and access to, the Premises. 

    29.28  Counterparts.  This Lease may be executed in counterparts with the same effect as if both parties
hereto had executed the same document. Both counterparts shall be construed together and shall constitute a single lease. 

    29.29  Asbestos Disclosures.  Tenant specifically acknowledges that Tenant has been advised that
asbestos-containing materials may have been used in the initial construction of the Building, and may have been used in connection with various additions and improvements made thereafter from time to
time. 

35

 

    IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be executed the day and date first above written. 

	 	

"Landlord":	
 	

 	

 	
 	

 
	 	 	9320 Wilshire Associates, LLC,

a California limited liability company
	

 	
 	

By:	

 	
 	

Its Manager

Lexington Commercial Holdings, Inc.,

a California Corporation
	

 	
 	

 	

 	
 	

/s/ ALISA J. FREUNDLICH   
 Alisa J. Freundlich,
 Chief Operating Officer
	 	

"Tenant":	
 	

 	

 	
 	

 
	

 	
 	

Pacific Crest Bank,

a California Corporation
	

 	
 	

By:	

/s/ CAROLYN REINHART   

	 	 	 	Its:	 	Senior Vice President

	

 	
 	

By:	

/s/ LYLE C. LODWICK   

	 	 	 	Its:	 	EVP

36

  

EXHIBIT A

OUTLINE OF PREMISES  

  
 

    [MAP]    
  

A–1

  

 
 

EXHIBIT B    
  

 
 

INTENTIONALLY DELETED    
  

B–1

  

 
 

EXHIBIT C    
  

 
 

NOTICE OF LEASE TERM DATES    
  

	To:	 	 	 	 
	

 	
 	

  
  

	

 	
 	

Re:	
 	

Office Lease dated               , 20  , between 9320 Wilshire Associates, LLC, a California limited liability company, and
       , a         (collectively, "Landlord"), and        , a         ("Tenant")
concerning Suite      of the office Building located at 9320 Wilshire Boulevard, Beverly Hills, California 90212.

Gentlemen:

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

    1.  That
the Premises are Ready for Occupancy, and that the Lease Term shall commence as of         for a term of 
        ending on        . 

    2.  That
in accordance with the Lease, Rent commenced to accrue on                 . 

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

    4.  Rent
is due and payable in advance on the first day of each and every month during the Lease Term. Your rent checks should be made payable to
                 at                 . 

    5.  The
exact number of rentable square feet within the Premises is      square feet. 

    6.  Tenant's
Share as adjusted based upon the exact number of rentable square feet within the Premises is    %. 

	

 	

 	
 	

"Landlord":
	

 	

 	
 	

9320 Wilshire Associates, LLC,

a California limited liability company
	

 	

 	
 	

By:	
 	

Its Manager

Lexington Commercial Holdings, Inc.,

a California Corporation
	

 	

 	
 	

 	
 	

 Alisa J. Freundlich,

Chief Operating Officer
	Agreed to and Accepted as

of               , 20      .	 	 	 	 
	

"Tenant":	
 	

 	
 	

 
	
[TENANT NAME AND LEGAL ENTITY],	
 	

 
	

By:	

  
	
 	

 	
 	

 
	Its:	  
	 	 	 	 

C–1

   EXHIBIT D  

 RULES AND REGULATIONS

Tenant
shall faithfully observe and comply with the following Rules and Regulations. Landlord shall not be responsible to Tenant for the nonperformance of any of said Rules and Regulations by or
otherwise with respect to the acts or omissions of any other tenants or occupants of the Building. 

    1.  Tenant
shall not alter any lock or install any new or additional locks or bolts on any doors or windows of the Premises without obtaining Landlord's prior written
consent. Tenant shall bear the cost of any lock changes or repairs required by Tenant. Two keys will be furnished by Landlord for the Premises, and any additional keys required by Tenant must be
obtained from Landlord at a reasonable cost to be established by Landlord. 

    2.  All
doors opening to public corridors shall be kept closed at all times except for normal ingress and egress to the Premises, unless electrical hold backs have been
installed. 

    3.  Landlord
reserves the right to close and keep locked all entrance and exit doors of the Building during such hours as are customary for comparable buildings in the
vicinity of the Building. Tenant, its employees and agents must be sure that the doors to the Building are securely closed and locked when leaving the Premises if it is after the normal hours of
business for the Building. Any tenant, its employees, agents or any other persons entering or leaving the Building at any time when it is so locked, or any time when it is considered to be after
normal business hours for the Building, may be required to sign the Building register when so doing. Access to the Building may be refused unless the person seeking access has proper identification or
has a previously arranged pass for access to the Building. The Landlord and his agents shall in no case be liable for damages for any error with regard to the admission to or exclusion from the
Building of any person. In case of invasion, mob, riot, public excitement, or other commotion, Landlord reserves the right to prevent access to the Building during the continuance of same by any means
it deems appropriate for the safety and protection of life and property. 

    4.  Landlord
shall have the right to prescribe the weight, size and position of all safes and other heavy property brought into the Building. Safes and other heavy
objects shall, if considered necessary by Landlord, stand on supports of such thickness as is necessary to properly distribute the weight. Landlord will not be responsible for loss of or damage to any
such safe or property in any case. All damage done to any part of the Building, its contents, occupants or visitors by moving or maintaining
any such safe or other property shall be the sole responsibility of Tenant and any expense of said damage or injury shall be borne by Tenant. 

    5.  No
furniture, freight, packages, supplies, equipment or merchandise will be brought into or removed from the Building or carried up or down in the elevators, except
upon prior notice to Landlord, and in such manner, in such specific elevator, and between such hours as shall be designated by Landlord. Tenant shall provide Landlord with not less than
24 hours prior notice of the need to utilize an elevator for any such purpose, so as to provide Landlord with a reasonable period to schedule such use and to install such padding or take such
other actions or prescribe such procedures as are appropriate to protect against damage to the elevators or other parts of the Building. In no event shall Tenant's use of the elevators for any such
purpose be permitted during the hours of 7:00 a.m. - 9:00 a.m., 11:30 a.m. - 1:30 p.m. and 4:30 p.m. - 6:30 p.m. 

    6.  Landlord
shall have the right to control and operate the public portions of the Building, the public facilities, the heating and air conditioning, and any other
facilities furnished for the common use of tenants, in such manner as is customary for comparable buildings in the vicinity of the Building. 

D–1

 

    7.  The requirements of Tenant will be attended to only upon application at the Office of the Building or at such office location designated by Landlord. Employees of
Landlord shall not perform any work or do anything outside their regular duties unless under special instructions from Landlord. 

    8.  Tenant
shall not disturb, solicit, or canvass any occupant of the Building and shall cooperate with Landlord or Landlord's agents to prevent same. 

    9.  The
toilet rooms, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed, and no foreign
substance of any kind whatsoever shall be thrown therein. The expense of any breakage, stoppage or damage resulting from the violation of this rule shall be borne by the tenant who, or whose employees
or agents, shall have caused it. 

    10. Tenant
shall not overload the floor of the Premises, nor mark, drive nails or screws, or drill into the partitions, woodwork or plaster or in any way deface the
Premises or any part thereof without Landlord's consent first had and obtained. 

    11. No
vending machine or machines of any description other than fractional horsepower office machines shall be installed, maintained or operated upon the Premises
without the written consent of Landlord. 

    12. Tenant
shall not use or keep in or on the Premises or the Building any kerosene, gasoline or other inflammable or combustible fluid or Hazardous Material. 

    13. Tenant
shall not use any method of heating or air conditioning other than that which may be supplied by Landlord, without the prior written consent of Landlord. 

    14. Tenant
shall not use, keep or permit to be used or kept, any foul or noxious gas or substance in or on the Premises, or permit or allow the Premises to be occupied
or used in a manner offensive or objectionable to Landlord or other occupants of the Building by reason of noise, odors, or vibrations, or interfere in any way with other Tenants or those having
business therein. 

    15. Tenant
shall not bring into or keep within the Building or the Premises any animals, birds, bicycles or other vehicles. 

    16. No
cooking shall be done or permitted by any tenant on the Premises, nor shall the Premises be used for the storage of merchandise, for lodging or for any improper,
objectionable or immoral purposes. Notwithstanding the foregoing, Underwriters' laboratory-approved equipment and microwave ovens may be used in the Premises for heating food and brewing coffee, tea,
hot chocolate and similar beverages, provided that such use is in accordance with all applicable federal, state and city laws, codes, ordinances, rules and regulations, and does not cause odors which
are objectionable to Landlord and other Tenants. 

    17. Landlord
will approve where and how telephone and telegraph wires are to be introduced to the Premises. No boring or cutting for wires shall be allowed without the
consent of Landlord. The location of telephone, call boxes and other office equipment affixed to the Premises shall be subject to the approval of Landlord. 

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

    19. Tenant,
its employees and agents shall not loiter in the entrances or corridors, nor in any way obstruct the sidewalks, lobby, halls, stairways or elevators, and
shall use the same only as a means of ingress and egress for the Premises. 

    20. Tenant
shall not waste electricity, water or air conditioning and agrees to cooperate fully with Landlord to ensure the most effective operation of the Building's
heating and air conditioning system, 

D–2

 

and shall refrain from attempting to adjust any controls. This includes the closing of exterior blinds, disallowing the sun rays to shine directly into areas adjacent to exterior windows. 

    21. Tenant
shall store all its trash and garbage within the interior of the Premises. No material shall be placed in the trash boxes or receptacles if such material is
of such nature that it may not be disposed of in the ordinary and customary manner of removing and disposing of trash and garbage in the city in which the Building is located without violation of any
law or ordinance governing such disposal. All trash, garbage and refuse disposal shall be made only through entry-ways and elevators provided for such purposes at such times as Landlord
shall designate. 

    22. Tenant
shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any governmental agency. 

    23. Tenant
shall assume any and all responsibility for protecting the Premises from theft, robbery and pilferage, which includes keeping doors locked and other means of
entry to the Premises closed, when the Premises are not occupied. 

    24. Landlord
may waive any one or more of these Rules and Regulations for the benefit of any particular tenant or tenants, but no such waiver by Landlord shall be
construed as a waiver of such Rules and Regulations in favor of any other tenant or tenants, nor prevent Landlord from thereafter enforcing any such Rules or Regulations against any or all tenants of
the Building. 

    25. No
awnings or other projection shall be attached to the outside walls of the Building without the prior written consent of Landlord. No curtains, blinds, shades or
screens shall be attached to or hung in, or used in connection with, any window or door of the Premises without the prior written consent of Landlord. All electrical ceiling fixtures hung in offices
or spaces along the perimeter of the Building must be fluorescent and/or of a quality, type, design and bulb color approved by Landlord. 

    26. The
sashes, sash doors, skylights, windows, and doors that reflect or admit light and air into the halls, passageways or other public places in the Building shall
not be covered or obstructed by Tenant, nor shall any bottles, parcels or other articles be placed on the windowsills. 

    27. The
washing and/or detailing of or, the installation of windshields, radios, telephones in or repairs on, automobiles shall not be allowed on the Real Property. 

    28. Food
vendors shall be allowed in the Building upon receipt of a written request from the Tenant. The food vendor shall service only the tenants that have a written
request on file in the Building Management Office. Under no circumstance shall the food vendor display their products in a public or common area including corridors and elevator lobbies. Any failure
to comply with this rule shall result in immediate permanent withdrawal of the vendor from the Building. 

    29. Tenant
must comply with requests by the Landlord concerning the informing of their employees of items of importance to the Landlord. 

    30. Tenant
shall comply with any non-smoking ordinance adopted by any applicable governmental authority. 

    31. Landlord
reserves the right at any time to change or rescind any one or more of these Rules and Regulations, or to make such other and further reasonable Rules and
Regulations as in Landlord's judgment may from time to time be necessary for the management, safety, care and cleanliness of the Premises and Building, and for the preservation of good order therein,
as well as for the convenience of other occupants and tenants therein. Landlord shall not be responsible to Tenant or to any other person for the nonobservance of the Rules and Regulations by another
tenant or other person. Tenant shall be deemed to have read these Rules and Regulations and to have agreed to abide by them as a condition of its occupancy of the Premises. 

D–3

  

 
 

EXHIBIT E
  
    FORM OF TENANT'S ESTOPPEL CERTIFICATE    
  

    The undersigned as Tenant under that certain Office Lease (the "Lease") made and entered into as of               ,
19     and between 9320 WILSHIRE COMPANY, a California limited liability company, and the undersigned as Tenant, for Premises on the
             floor(s) of the office Building located at 9320 Wilshire Boulevard, Beverly Hills, California 90212. 

    1.  Attached
hereto as Exhibit A is a true and correct copy of the Lease and all amendments and modifications thereto. The documents contained in
Exhibit A represent the entire agreement between the parties as to the Premises. 

    2.  The
undersigned has commenced occupancy of the Premises described in the Lease, currently occupies the Premises, and the Lease Term commenced on
            . 

    3.  The
Lease is in full force and effect and has not been modified, supplemented or amended in any way except as provided in Exhibit A. 

    4.  Tenant
has not transferred, assigned, or sublet any portion of the Premises nor entered into any license or concession agreements with respect thereto except as
follows: 

    5.  Tenant
shall not modify the documents contained in Exhibit A or prepay any amounts owing under the Lease to Landlord in excess of thirty (30) days
without the prior written consent of Landlord's mortgagee. 

    6.  Base
Rent became payable on             . 

    7.  The
Lease Term expires on             . 

    8.  All
conditions of the Lease to be performed by Landlord necessary to the enforceability of the Lease have been satisfied and Landlord is not in default thereunder. 

    9.  No
rental has been paid in advance and no security has been deposited with Landlord except as provided in the Lease. 

    10. As
of the date hereof, there are no existing defenses or offsets that the undersigned has, which preclude enforcement of the Lease by Landlord. 

    11. All
monthly installments of Base Rent, all Additional Rent and all monthly installments of estimated Additional Rent have been paid when due through
            . The current monthly installment of Base Rent is $     . 

    12. The
undersigned acknowledges that this Estoppel certificate may be delivered to Landlord's prospective mortgagee, or a prospective purchaser, and acknowledges that
it recognizes that if same is done, said mortgagee, prospective mortgagee, or prospective purchaser will be relying upon the statements contained herein in making the loan or acquiring the property of
which the Premises are a part, and in accepting an assignment of the Lease as collateral security, and that receipt by it of this certificate is a condition of making of the loan or acquisition of
such property. 

    13. In
the event of a default by the Landlord under any of the terms and conditions of the Lease, the undersigned at the same time notice thereof is given to the
Landlord, will notify holder of any first mortgage or deed of trust (each, a "Mortgagee") covering the Property, provided Landlord has provided Tenant the address of such Mortgagee. In the event that
the default is not cured by the Landlord within the time provided for under the terms and conditions of the Lease and provided the Mortgagee has given the undersigned written notice of Mortgagee's
intention to cure such default, the undersigned will allow the Mortgagee the opportunity and sufficient additional time within which to correct Landlord's default, provided the Mortgagee diligently
pursues such cure. 

E–1

 

    14. If Tenant is a corporation or partnership, each individual executing this Estoppel Certificate on behalf of Tenant hereby represents and warrants that Tenant is a
duly formed and existing entity qualified to do business in the state in which the Building is located and that Tenant has full right and authority to execute and deliver this Estoppel Certificate and
that each person signing on behalf of Tenant is authorized to do so. 

    Executed
at                          on the              day of
                        20    . 

	 	 	"Tenant":
	

 	
 	

____________________________________,

a ____________________________________

By: ____________________________________

Its: ____________________________________

By: ____________________________________

Its: ____________________________________

E–2

  

 
 

EXHIBIT F
  
    PARKING RULES AND REGULATIONS    
  

    1.  Tenant
shall not park or permit the parking of any vehicle under its control in any parking area designated by Landlord as areas for parking by visitors. Tenant
shall not leave vehicles in the parking area overnight nor park any vehicles in the parking areas other than automobiles, motorcycles, motor driven or non-motor driven bicycles or
four-wheeled trucks. 

    2.  Parking
stickers or any other device or form of identification supplied by Landlord as a condition of use of the parking facilities shall remain the property of
Landlord. Such parking identification device must be displayed as requested and may not be mutilated in any manner. The serial number of the parking identification device may not be obliterated.
Devices are not transferable and any device in the possession of an unauthorized holder will be void. 

    3.  No
extended term storage of vehicles shall be permitted. 

    4.  Vehicles
must be parked entirely within the painted stall lines of a single parking stall. Landlord reserves the right to use stack parking at any time 

    5.  All
directional signs and arrows must be observed. 

    6.  Parking
is prohibited: 

    (a) in
areas not striped for parking; 

    (b) in
driveways; 

    (c) where
"no parking" signs are posted; 

    (d) in
cross-hatched areas; and 

    (e) In
such other areas as may be designated by Landlord or its parking operator. 

    7.  Landlord
is not responsible and shall have no liability whatsoever for any damage to vehicles or persons including but not limited to damage by water, fire, or
defective brakes, or parts, or for the acts or omissions of others, or for loss of articles left in vehicles. 

    8.  Loss
or theft of parking identification devices from vehicles must be reported to the parking operator immediately, and a lost or stolen report must be filed at
that time. Landlord has the right to exclude any vehicles from the parking facilities that does not have an identification device. 

    9.  Any
parking identification devices reported lost or stolen which are found on any unauthorized vehicle will be confiscated and the illegal holder will be subject to
prosecution. 

    10. Lost
or stolen identification devices found by the Tenant should be reported to the parking facility office or property manager immediately to avoid confusion. 

    11. Washing,
waxing, cleaning or servicing of any vehicle in any area by Tenant and/or his agent is prohibited. 

    12. Tenant
shall acquaint all persons to whom Tenant assigns parking space of these Rules and Regulations. Parking facility managers or attendants are not authorized to
make or allow any exceptions to these Rules and Regulations. 

F–1

QuickLinks

EXHIBIT 10.9

Office Lease Between 9320 Wilshire Associates and Pacific Crest Bank, dated May 16, 2001 (Beverly Hills Branch)

OFFICE LEASE

[MAP]

EXHIBIT B

INTENTIONALLY DELETED

EXHIBIT C

NOTICE OF LEASE TERM DATES

EXHIBIT E FORM OF TENANT'S ESTOPPEL CERTIFICATE

EXHIBIT F PARKING RULES AND REGULATIONSPrepared by MERRILL CORPORATION

QuickLinks
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EXHIBIT 10.10    
  

 
 

Office Lease Between Gulf Construction Company and Pacific
  Crest Bank, dated December 4, 1998 (San Diego Branch)    
  

 
 

1501 FIFTH AVENUE    
  

 
 

OFFICE LEASE    
  

 
 

Prepared For    
  

 
 

PACIFIC CREST BANK    
  

 
 
 

TABLE OF CONTENTS    
  

	1.	 	Basic Lease Provisions	 	1
	 	 	1.1	 	Parties	 	1
	 	 	1.2	 	Premises	 	1
	 	 	1.3	 	Building	 	1
	 	 	1.4	 	Use	 	1
	 	 	1.5	 	Term	 	1
	 	 	1.6	 	Base Rent	 	1
	 	 	1.7	 	Security Deposit	 	1
	 	 	1.8	 	Lessee's Share of Operating Expenses	 	1
	

2.	
 	

Premises, Parking and Common Areas	
 	

1
	 	 	2.1	 	Premises	 	1
	 	 	2.2	 	Vehicle Parking	 	2
	 	 	2.3	 	Common Areas-Definition	 	2
	 	 	2.4	 	Common Areas-Rules and Regulations	 	2
	 	 	2.5	 	Common Areas-Changes	 	2
	

3.	
 	

Term	
 	

2
	 	 	3.1	 	Term	 	2
	 	 	3.2	 	Option to Extend	 	3
	

4.	
 	

Rent	
 	

3
	 	 	4.1	 	Base Rent	 	3
	 	 	4.2	 	Operating Expenses	 	3
	

5.	
 	

Security Deposit	
 	

6
	

6.	
 	

Use	
 	

7
	 	 	6.1	 	Use	 	7
	 	 	6.2	 	Compliance with Law	 	7
	 	 	6.3	 	Condition of Premises	 	7
	

7.	
 	

Maintenance, Repairs, Alterations and Common Area Services	
 	

8
	 	 	7.1	 	Lessor's Obligations	 	8
	 	 	7.2	 	Lessee's Obligations	 	8
	 	 	7.3	 	Alterations and Additions	 	8
	 	 	7.4	 	Utility Additions	 	9
	

8.	
 	

Insurance: Indemnity	
 	

10
	 	 	8.1	 	Liability Insurance-Lessee	 	10
	 	 	8.2	 	Liability Insurance-Lessor	 	10
	 	 	8.3	 	Property Insurance-Lessee	 	10
	 	 	8.4	 	Property Insurance-Lessor	 	10
	 	 	8.5	 	Insurance Policies	 	10
	 	 	8.6	 	Waiver of Subrogation	 	11
	 	 	8.7	 	Indemnity	 	11
	

9.	
 	

Damage or Destruction	
 	

11
	 	 	9.1	 	Definitions	 	11
	 	 	9.2	 	Premises Damage; Premises Building Partial Damage	 	12
	 	 	9.3	 	Premises Building Total Destruction: Office Building Project Total Destruction	 	12
	 	 	9.4	 	Damage Near End of Term	 	12

i

 

	 	 	9.5	 	Abatement of Rent; Lessee's Remedies	 	13
	 	 	9.6	 	Termination-Advance Payments	 	13
	 	 	9.7	 	Waiver	 	13
	

10.	
 	

Real Property Taxes	
 	

13
	 	 	10.1	 	Payment of Taxes	 	13
	 	 	10.2	 	Additional improvements	 	13
	 	 	10.3	 	Definition of "Real Property Tax"	 	13
	 	 	10.4	 	Joint Assessment	 	14
	 	 	10.5	 	Personal Property Taxes	 	14
	

11.	
 	

Utilities	
 	

14
	 	 	11.1	 	Services Provided By Lessor	 	14
	 	 	11.2	 	Services Exclusive to Lessee	 	15
	 	 	11.3	 	Excess Usage by Lessee	 	15
	 	 	11.4	 	Interruptions	 	15
	

12.	
 	

Assignment and Subletting	
 	

15
	 	 	12.1	 	Lessor's Consent Required	 	15
	 	 	12.2	 	Lessee Affiliate	 	15
	 	 	12.3	 	Terms and Conditions Applicable to Assignment and Subletting	 	15
	 	 	12.4	 	Additional Terms and Conditions Applicable to Subletting	 	16
	 	 	12.5	 	Lessor's Expenses	 	17
	 	 	12.6	 	Conditions to Consent	 	17
	 	 	12.7	 	Right to cancel	 	17
	

13.	
 	

Default; Remedies	
 	

18
	 	 	13.1	 	Default	 	18
	 	 	13.2	 	Remedies	 	18
	 	 	13.3	 	Default by Lessor	 	19
	 	 	13.4	 	Late Charges	 	19
	

14.	
 	

Condemnation	
 	

19
	

15.	
 	

Broker's Fee	
 	

20
	

16.	
 	

Estoppel Certificate	
 	

20
	

17.	
 	

Lessor's Liability	
 	

20
	

18.	
 	

Severability	
 	

21
	

19.	
 	

Time of Essence	
 	

21
	

20.	
 	

Additional Rent	
 	

21
	

21.	
 	

Incorporation of Prior Agreements; Amendments	
 	

21
	

22.	
 	

Notices	
 	

21
	

23.	
 	

Waivers	
 	

21
	

24.	
 	

Acceptance of Rent	
 	

21
	

25.	
 	

Holding Over	
 	

22
	

26.	
 	

Cumulative Remedies	
 	

22
	

27.	
 	

Covenants and Conditions	
 	

22

ii

 

	

28.	
 	

Binding Effect: Choice of Law	
 	

22
	

29.	
 	

Subordination	
 	

22
	

30.	
 	

Attorney's Fees	
 	

22
	

31.	
 	

Lessor's Access	
 	

23
	

32.	
 	

Auctions	
 	

23
	

33.	
 	

Merger	
 	

23
	

34.	
 	

Consents	
 	

23
	

35.	
 	

Quiet Possession	
 	

23
	

36.	
 	

Security Measures—Lessor's Reservations	
 	

23
	

37.	
 	

Easements	
 	

24
	

38.	
 	

Performance Under Protest	
 	

25
	

39.	
 	

Authority	
 	

25
	

40.	
 	

Conflict	
 	

25
	

41.	
 	

No Offer	
 	

25
	

42.	
 	

Multiple Parties	
 	

25
	

43.	
 	

Building Signage	
 	

25
	

44.	
 	

Automatic Teller Machine	
 	

25
	

45.	
 	

Mail Box	
 	

25
	

46.	
 	

Competitive Factors	
 	

25
	

47.	
 	

Tenant Improvements	
 	

26

iii

  

 
 

OFFICE LEASE
  
    1501 Fifth Avenue    
  

1.  Basic Lease Provisions ("Basic Lease Provisions")  

1.1  Parties:  This Lease, dated for reference purposes only, December 4, 1998, is made by and between Gulf
Construction Company, a California corporation ("Lessor"), and Pacific Crest Bank, a California corporation ("Lessee"). 

1.2  Premises:  Suite Number(s) 100, first floor, consisting of approximately 4,505 rentable square feet, as defined in
paragraph 2 and as shown on Exhibit "A" hereto (the "Premises"). 

1.3  Building:  Commonly described as being located at the Northeast corner of 5th Avenue and Beech Street (1501 Fifth
Avenue), in the City of San Diego, County of San Diego, State of California, and as defined in paragraph 2. 

1.4  Use:  General office and banking purposes subject to paragraph 6. 

1.5  Term:  The term of the Lease shall be twelve (12) years ("Term"). The Term shall commence January 1,
1999 ("Term Commencement Date") and terminate on December 31, 2010 ("Term Expiration Date"). 

1.6  Base Rent:  The Base Rent for the Premises shall be on a fully serviced basis, with the Lessor paying all Operating
Expenses as defined in paragraph 4.2 herein. The following monthly rent schedule for the Premises shall apply, which reflects an annual four percent (4%) increase commencing in Year 2: 

	Year 1:	 	January 1, 1999 through December 31, 1999:	 	$	8,784.75
	Year 2:	 	January 1, 2000 through December 31, 2000:	 	$	9,136.14
	Year 3:	 	January 1, 2001 through December 31, 2001:	 	$	9,501.59
	Year 4:	 	January 1, 2002 through December 31, 2002:	 	$	9,881.65
	Year 5:	 	January 1, 2003 through December 31, 2003:	 	$	10,276.91
	Year 6:	 	January 1, 2004 through December 31, 2004:	 	$	10,687.99
	Year 7:	 	January 1, 2005 through December 31, 2005:	 	$	11,115.51
	Year 8:	 	January 1, 2006 through December 31, 2006:	 	$	11,560.13
	Year 9:	 	January 1, 2007 through December 31, 2007:	 	$	12,022.54
	Year 10:	 	January 1, 2008 through December 31, 2008:	 	$	12,503.44
	Year 11:	 	January 1, 2009 through December 31, 2009:	 	$	13,003.58
	Year 12:	 	January 1, 2010 through December 31, 2010:	 	$	13,523.72

1.7  Security Deposit:  The Security Deposit for the Term shall be $8,784.75. Lessor shall credit Lessee with $1,215.25 as
an offset against the Base Rent during the first month of the Term. This amount represents the difference between the existing Security Deposit being held by Lessor in the amount of $10,000.00
pursuant to that certain Lease between Lessee and Fifth and Beech Associates, dated June 30, 1989, and all Modifications and Amendments thereto, and the Security Deposit for the Term of this
Lease. 

1.8  Lessee's Share of Operating Expenses:  12.9% as defined in paragraph 4.2. 

2.  Premises, Parking and Common Areas.  

2.1  Premises:  The Premises are a portion of a building, herein sometimes referred to as the "Building" identified in
paragraph 1.3 of the Basic Lease Provisions. "Building" shall include adjacent parking structures used in connection therewith. The Premises, the Building, the Common Areas, the land upon which
the same are located, along with all other buildings and improvements 

1

 

thereon or thereunder, are herein collectively referred to as the "Office Building Project". Lessor hereby leases to Lessee and Lessee leases from Lessor for the Term, at the rental, and upon all of
the conditions set forth herein, the real property referred to in the Basic Lease Provisions, paragraph 1.2, as the "Premises", including rights to the Common Areas as hereinafter specified. 

2.2  Vehicle Parking:  Lessee, as of the Term Commencement Date, shall be entitled to the exclusive use of eight
(8) parking spaces (the entire first level parking area) within the Office Building Project. These spaces shall be payable at $75.00 per space per month for the Term, and any renewals or
extensions thereof, with fixed annual increases of four percent (4%) commencing January 1, 2000. 

2.3  Common Areas-Definition:  The term "Common Areas" is defined as all areas and facilities outside the Premises and
other premises leased to third parties and within the exterior boundary line of the Office Building Project that are provided and designated by the Lessor from time to time for the general
non-exclusive use of Lessor, Lessee and of other lessees of the Office Building Project and their respective employees, suppliers, shippers, customers and invitees, including but not
limited to common entrances, lobbies, corridors, stairways and stairwells, public restrooms, elevators, escalators, parkways, ramps, driveways, landscaped areas and decorative walls. 

2.4  Common Areas-Rules and Regulations:  Lessee agrees to abide by and conform to the rules and regulations attached
hereto as Exhibit "C" with respect to the Office Building Project and Common Areas, and to use its best efforts to cause its employees, suppliers, shippers, customers, and invitees to so abide and
conform. 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 modify, amend and
enforce said rules and regulations in its reasonable discretion. 

2.5  Common Areas-Changes:  Provided such actions do not unreasonably interfere with Lessee's use and enjoyment of the
premises and except as otherwise provided for in this lease, Lessor shall have the right, in Lessor's reasonable discretion, from time to time: 

(a)    To
make changes to the Building interior and exterior and Common Areas, including, without limitation, changes in the location, size, shape, number, and appearance thereof,
including but not limited to the lobbies, windows, stairways, air shafts, elevators, escalators, restrooms, driveways, walkways, provided, however, Lessor shall at all times provide the parking
facilities required by applicable law; 

(b)    To
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 and improvements outside the boundaries of the Office Building Project to be a part of the Common areas, provided that such other land and improvements have
a reasonable and functional relationship to the Office Building Project; 

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

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

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

3.  Term.  

3.1  Term:  The Term and Term Commencement Date of this Lease shall be as specified in paragraph 1.5 of the Basic
Lease Provisions. 

2

 

3.2  Option to Extend:  Provided Lessee is not then in material default under the terms and provision of this Lease,
Lessee, subject to the terms and conditions herein contained, shall have the option to extend the term of this Lease for one (1) additional term of five (5) years (the "Renewal Term")
commencing January 1, 2011. The option herein granted shall be conditioned for its effectiveness upon Lessee notifying Lessor in writing, by registered or certified mail before 5:00
 p.m., July 1, 2010, of
Lessee's decision to exercise said option. The base rental rate during the Renewal Term shall be the then fair market rental rate for first class office space of comparable size and quality in
Downtown San Diego, prevailing at the commencement of the Renewal Term. The fair market rental rate shall be determined by mutual agreement between Lessor and Lessee, and upon failure of the parties
to so agree at least ninety (90) days prior to the commencement of the Renewal Term, the fair market rental rate shall be determined by three (3) certified appraisers, each of whom must
have knowledge of the office rental market in Downtown San Diego. Lessor and Lessee shall each select, at least eighty-five (85) days prior to the commencement of the Renewal Term,
an appraiser, and the two so selected shall select a third. If the two appraisers selected by Lessor and Lessee are unable within five (5) days of their selection to agree on a third appraiser,
the third appraiser, at least eighty (80) days prior to the commencement of the Renewal Term, shall be selected by the then President of the San Diego Chapter of the Institute of Real Estate
Management (or, if he or she shall refuse to or be unable to do so, by a comparable Real Estate Official in San Diego). The appraisal to be made prior to the commencement date of the Renewal Term
shall establish the fair market rental rate of the Premises for the 180 day period immediately preceding commencement of the Renewal Term. In determining the fair market rental rate each
appraiser shall: take into consideration the then current availability of similar space in buildings of comparable size and age in the San Diego urban area, giving due consideration to the location;
assume the Premises are in their current condition; consider the amount of space within the Premises; and consider the credit rating of the Lessee. Said appraisers shall be instructed to determine
fair market rental rate independently without consulting each other, and thereafter, to submit the appraisals to both Lessor and Lessee contemporaneously in writing no later than sixty
(60) days prior to the commencement of the Renewal Term. The rental rate shall be determined by eliminating the highest and lowest appraisals, and the remaining appraisal shall apply. Each
party shall pay the cost of its own appraiser. The cost of the third appraiser, and his/her out of pocket expenses, shall be borne equally by Lessor and Lessee. Upon the determination of fair market
rental rate, the parties shall execute an appropriate document confirming said fair market rental rate, and thereafter Lessee shall have ten (10) days in which to make a final election as to
whether this lease shall or shall not be so extended. Lessee's choice not to notify Lessor of its final election within the ten (10) days, shall be automatically deemed by Lessor as Lessee's
decision the Lease shall not be extended. 

4.  Rent.  

4.1  Base Rent:  Except as may be otherwise expressly provided in this Lease, Lessee shall pay to Lessor the Base Rent for
the Premises set forth in paragraph 1. 6 of the Basic Lease Provisions, without offset or deduction. Rent for any period during the Term hereof which is for less than one month shall be prorated based
upon the actual number of days of the calendar month involved. Rent shall be payable in lawful money of the United States to Lessor at the address stated herein or to such other persons or at such
other places as Lessor may designate in writing. 

4.2  Operating Expenses:  Lessee shall pay to Lessor during the Term hereof, in addition to the Base Rent, Lessee's Share,
as hereinafter defined, of all Operating Expenses, in excess of the amount established during the January 1, 1999 through December 31, 1999 term of this Lease ("Base Year"), as
determined by standard accounting practices, calculated assuming the Building is ninety-five percent (95%) occupied during the Base Year. Lessee shall not be responsible for any capital expenses.
Lessee shall have the right to audit any passthroughs (Operating Expenses in 

3

 

excess of the Base Year Operating Expenses), however in no case shall Lessor pass through any amount greater than five percent (5%) of the Lessee's Share of the Operating Expenses for the Base Year,
non-cumulative, per year. The maximum amount of the passthrough shall be calculated as follows: Lessee's Share of the Base Year Operating Expenses, expressed as a cost per square foot,
shall be multiplied by five percent (5%), which shall represent the maximum amount of Operating Expense per square foot that may be passed through to Lessee in any one year ("Annual Maximum Operating
Expense Passthrough"). Commencing on January 1, 2000, and continuing each successive January 1 thereafter, Lessor shall provide Lessee with a reasonably detailed statement of the total
Operating Expenses and the Lessee's Share of those Operating Expenses to be passed through ("Operating Expense Statement"). Lessee shall pay to Lessor Lessee's Share, pursuant to Lessee's right to
audit the Operating Expense Statement, which shall be the lesser amount of the following: (a) Lessee's Annual Maximum Operating Expense Passthrough; or (b) Lessee's Share per square foot
of Operating Expenses as calculated for the current year. 

Operating
Expenses shall be in accordance with the following provisions: 

(a)    "Lessee's
Share" is defined, for purposes of this Lease, as the percentage set forth in paragraph 1.8 of the Basic Lease Provisions, which percentage has been determined by
dividing the approximate rentable square footage of the Premises by the total approximate square footage of the rentable space contained in the Office Building Project. It is understood and agreed
that the rentable square footage figures set forth in the Basic Lease Provisions are approximations which Lessor and Lessee agree are reasonable and shall not be subject to revision except in
connection with an actual change in the size of the Premises or a change in the space available for lease in the Office Building Project. 

(b)    "Operating
Expenses" is defined, for purposes of this Lease, to include all costs, (except janitorial services for Lessee's space which Lessee shall arrange and pay for in addition
to Base Rent), incurred by Lessor in the exercise of its reasonable discretion for: 

(i)    the
operation, repair, maintenance, and replacement, in neat, clean, safe, good order and condition, of the Office Building Project, including but not limited to, the following: 

(aa)    The
Common Areas, including their surfaces, coverings, decorative items, carpets and window coverings, and including parking areas, loading and unloading areas, trash areas,
roadways, sidewalks, walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting facilities, building exteriors and roofs, fences and gates; 

(bb)    All
heating, air conditioning, plumbing, electrical systems, life safety equipment, telecommunication and other equipment used in common by, or for the benefit of, lessees or
occupants of the Office
Building Project, including elevators and escalators, tenant directories, fire detection systems including sprinkler system maintenance and repair. 

(ii)    Trash
disposal, janitorial for the common areas, and security services; 

(iii)    Any
other service to be provided by Lessor that is elsewhere in this Lease stated to be an "Operating Expense"; 

(iv)    The
cost of the premiums for the liability and property insurance policies to be maintained by Lessor under paragraph 8 hereof; 

(v)    The
amount of the real property taxes to be paid by Lessor under paragraph 10.1 hereof. Notwithstanding the provisions of paragraph 10.1, however, for purposes of 

4

 

Operating Expenses, they shall mean property tax assessments paid by Lessor based upon the July 14, 1998 sale of the Building, but shall exclude the cost of a property tax increase as the
result of any future sale, refinance or transfer of the property; 

(vi)    The
cost of water, sewer, gas, electricity, and other publicly mandated services to the Office Building Project; 

(vii)    Labor,
salaries and applicable fringe benefits and costs, materials, supplies and tools, used in maintaining and/or cleaning the Office Building Project and accounting and a
reasonable management fee attributable to the operation of the Office Building Project; 

(viii)    Replacing
and/or adding improvements mandated by any governmental agency and any repairs or removals necessitated thereby amortized over its useful life according to Federal
income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then reasonable in the judgment of Lessor's accountants); 

(ix)    Replacements
of equipment or improvements that have a useful life for depreciation purposes according to Federal income tax guidelines of five (5) years or less, as
amortized over such life. 

(c)     Operating
Expenses shall not include the costs of replacements of equipment or improvements that have a useful life for Federal income tax purposes in excess of
five (5) years unless it is of the type described in paragraph 4.2(b)(viii), in which case their costs shall be included as above provided. 

(d)    Operating
Expenses shall not include any expenses paid by any lessee directly to third parties, or as to which Lessor is otherwise reimbursed by any third party, other tenant, or
by insurance proceeds. 

Notwithstanding
the foregoing, the following items shall be excluded from Operating Expenses throughout the entire term of the Lease: 

(1)    The
cost of repairs to the Office Building Project, if the cost of the repairs is reimbursed by insurance carried by Lessor; 

(2)    Leasing
commissions paid to agents of Lessor, other brokers or any other persons in connection with the leasing of the Office Building Project; 

(3)    The
cost of renovating space for any new lessee or space vacated by any lessee of the Office Building Project; 

(4)    The
cost of utilities charged to any individual lessee and payroll, material and contract costs of other services charged to any lessee in the Office Building Project; 

(5)    Costs
incurred by Lessor for the installation of any lessee's improvements in the Office Building Project; 

(6)    The
cost of painting and decorating the premises of other lessees in the Office Building Project; 

(7)    The
depreciation of the Office Building Project; 

(8)    Interest
on debt or amortization payments on any mortgages or deeds of trust or ground lease payments; 

(9)    Legal
and other related expenses associated with the enforcement of leases or the defense of Lessor's title to the Office Building Project including legal expenses in connection
with the negotiation of leases and defense against any lessee suits; 

5

 

(10)    Advertising costs incurred directly for renting individual space in the Office Building Project; 

(11)    Lessor's
general corporate overhead and general administrative expenses not related to the operation of the Office Building Project; 

(12)    Any
compensation paid to clerks, attendants or other persons in commercial concessions operated by Lessor; and 

(13)    All
items and services for which Lessee or any other lessee in the Office Building Project reimburses Lessor or which Lessor provides selectively to one or more lessees (other
than Lessee) without reimbursement, provided that no item or service supplied selectively to another lessee shall be paid for by Lessee. 

(e)    Lessee's
Share of Operating Expenses for the last calendar year of the Lease term shall be prorated according to that portion of the calendar year as to which Lessee is responsible
for a share thereof. Lessor and Lessee shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last calendar year for which Lessee is
responsible as to Operating Expenses, notwithstanding that the Lease term may have terminated before the end of such calendar year. 

(f)    Lessee's
Share of Operating Expenses shall be payable annually by Lessee within thirty (30) days after a reasonably detailed statement of actual expenses is presented to
Lessee by Lessor. Lessee may, within forty-five (45) days after its receipt of any statement of expenses, audit the books and records of Lessor in order to confirm the amount of
Operating Expenses set forth in the statement. In the event of any discrepancy between the expense statement and actual Operating Expenses, such discrepancy shall be corrected by adjusting the amount
of Lessee's monthly payment of rent next due Lessor. The costs of any such audit shall be at the sole expense of Lessee, unless the audit reveals an over statement of Operating Expenses in excess of
five percent (5%), in which event Lessor shall reimburse Lessee its reasonable costs of audit. 

5.  Security Deposit.  Lessee shall deposit with Lessor upon execution hereof the security deposit set forth in
paragraph 1.7 of the Basic Lease Provisions as security for Lessee's faithful performance of Lessee's obligations hereunder. If Lessee fails to pay rent or other charges due hereunder or
otherwise defaults with respect to any provision of this Lease, Lessor may use, apply or retain all or any portion of said deposit for the payment of any rent or other charge in default of the payment
of any other sum to which Lessor may become obligated by reason of Lessee's default, or to compensate Lessor for any loss or damage which Lessor may suffer thereby. If Lessor so uses or applies all or
any portion of said deposit, Lessee shall, within ten (10) days after written demand therefor, deposit cash with Lessor in an amount sufficient to restore said deposit to the full amount then
required of Lessee. Lessor shall not be required to keep said security deposit separate from its general accounts. If Lessee performs all of Lessee's obligations hereunder, said deposit, or so much
thereof as has not heretofore been applied by Lessor, shall be returned, without payment of interest or other increment for its use, to Lessee (or, at Lessor's option, to the last assignee, if any, of
Lessee's interest hereunder) at the expiration of the term hereof, and after Lessee has vacated the Premises. 

6

   6.  Use.  

6.1  Use.  Lessee will use and occupy the Premises only for the purpose set forth in paragraph 1.4 of the Basic
Lease Provisions. Lessee shall maintain the Premises in a clean, safe, sanitary and proper manner and shall pay for any damage to the Premises or to any other part of the Building caused by any
negligence, willful act, misuse or abuse by Lessee or any of its agents, employees, licensees or invitees which is not recoverable as an insured loss. Lessee will not cause anywhere in the Building,
or permit in the Premises, (a) any activity or thing contrary to applicable law, ordinance, regulation or insurance requirement, or which is in any way hazardous or could jeopardize the
coverage of normal insurance policies or increase their cost, (b) any waste or nuisance, defacing or injury of the Building, or any activity causing odors perceptible outside the Premises,
(c) any overloading of the floors or the structural or mechanical systems of the Building. Lessee shall conduct its business and occupy the Premises, shall not create any nuisance, interfere
with, annoy or disturb any other tenant in the Building or Lessor in its management thereof. 

6.2  Compliance with Law.  

(a)    Lessor
warrants to Lessee that the Premises, in the state existing on the date that the Lease term commences, but without regard to alterations or improvements made by Lessee or to
the use for which Lessee will occupy the Premises, does not violate any covenants or restrictions of record, or any applicable law or ordinance in effect on the Term Commencement Date, that would
substantially and adversely affect the operation and profitability of Lessee's business conducted from the Premises. In the event that it is determined that this warranty has been violated, then it
shall be the obligation of Lessor, after receipt of written notice from Lessee setting forth with specificity the nature of the violation, to promptly, at Lessor's sole cost, rectify such violation. 

(b)    Except
as provided in paragraph 6.2(a), Lessee shall, at Lessee's expense, promptly comply with all applicable statutes, ordinances, rules, regulations, orders, covenants
and restrictions of record, and requirements of any fire insurance underwriters or rating bureaus now in effect or which may hereafter come into effect, whether or not they reflect a change in policy
from that now existing, during the term or any part of the term hereof, relating in any manner to the Premises and the occupation and use by Lessee of the Premises. Lessee shall conduct its business
in a lawful manner and shall not use or permit the use of the Premises or the Common Areas in any manner that will tend to create waste or a nuisance or shall tend to disturb other occupants of the
Office Building Project. 

6.3  Condition of Premises.  

(a)    Lessor
shall deliver the Premises to Lessee in a clean condition on the Term Commencement Date (unless Lessee is already in possession) and Lessor warrants to Lessee that the
plumbing, lighting, air conditioning, and heating system in the Premises shall be in good operating condition. In the event that it is deterrmined that this warranty has been violated, then it shall
be the obligation of Lessor, after receipt of written notice from Lessee setting forth with specificity the nature of the violation, to promptly, at Lessor's sole cost, rectify such violation.
Lessee's failure to give such written notice to Lessor within one hundred eighty (180) days after the Term Commencement Date, shall result in the conclusive presumption that Lessor has complied
with all of its obligations hereunder, that the Premises are fully completed and are suitable for Lessee's purposes, that the Building and every part of it, including the Premises, are in good and
satisfactory condition, and that Lessee waives any defects therein. 

(b)    Except
as otherwise provided in this Lease, Lessee hereby accepts the Premises and the Office Building Project in their condition existing as of the Term Commencement Date, 

7

 

subject to all applicable zoning, municipal, county and state laws, ordinances and regulations governing and regulating the use of the Premises, and any easements, covenants or restrictions of record,
and accepts this Lease subject thereto and to all matters disclosed thereby and by any exhibits attached hereto. Lessee acknowledges that it has satisfied itself by its own independent investigation
that the Premises are suitable for its intended use, and that neither Lessor nor Lessor's agent or agents has made any representation or warranty as to the present or future suitability of the
Premises, Common Areas, or Office Building Project for the conduct of Lessee's business. 

7.  Maintenance, Repairs, Alterations and Common Area Services.  

7.1  Lessor's Obligations.  Lessor shall keep the Office Building Project, including the Premises, interior and exterior
walls, roof and common areas, and the equipment whether used exclusively for the premises or in common with other premises, in good condition and repair; provided, however, Lessor shall not be
obligated to paint, repair or replace wall coverings, or to repair or replace any improvements that are not ordinarily a part of the Building or are above then Building standards. Except as provided
in paragraph 9.5, there shall be no abatement of rent or liability of Lessee on account of any injury or interference with Lessee's business with respect to any improvements, alterations or
repairs made by Lessor to the Office Building Project or any part thereof. 

7.2  Lessee's Obligations.  

(a)    Notwithstanding
Lessor's obligation to keep the Premises in good condition and repair, Lessee shall be responsible for payment of the cost thereof to Lessor as additional rent for
that portion of the cost of any maintenance and repair of the premises, or any equipment (wherever located) that serves only Lessee or the Premises, to the extent such cost is attributable to causes
beyond normal wear and tear. Lessee shall be responsible for the cost of painting, repairing or replacing wall coverings, and to repair or replace any premises improvements that are not ordinarily a
part of the Building or that are above then Building standards. Lessor may, at its option, upon reasonable notice, elect to have Lessee perform any particular such maintenance or repairs, the cost of
which is otherwise Lessee's responsibility hereunder. 

(b)    On
the last day of the term hereof, or on any sooner termination, Lessee shall surrender the Premises to Lessor in the same condition as received, ordinary wear and tear excepted,
clean and free of debris. Any damage or deterioration of the Premises shall not be deemed ordinary wear and tear if the same could have been prevented by good maintenance practices by Lessee. Lessee
shall repair any damage to the Premises occasioned by the installation or removal of Lessee's trade fixtures, alterations, furnishings and equipment. Except as otherwise stated in this Lease, Lessee
shall leave the air lines, power panels, electrical distribution systems, lighting fixtures, air conditioning, window coverings, wall coverings, carpets, wall paneling, ceilings and plumbing on the
Premises and in good operating condition. 

7.3  Alterations and Additions.  

(a)    Lessee
shall not, without Lessor's prior written consent, make any significant alterations, improvements, additions, Utility Installations or repairs in, on or about the Premises,
or the Office Building Project. As used in this paragraph 7.3 the term "Utility Installation" shall mean carpeting, window and wall coverings, power panels, electrical distribution systems,
lighting fixtures, air conditioning, plumbing and telephone and telecommunication wiring. At the expiration of the Term, Lessee, at its option, may remove any or all of said alterations, improvements,
additions or Utility Installations, in which event 

8

 

Lessee shall cause the Premises and the Office Building Project to be restored to their prior condition at Lessee's expense. Should Lessor permit Lessee to make significant alterations, improvements,
additions or Utility Installations, Lessee shall use only such contractor as has been expressly approved by Lessor, which approval by Lessor shall not be unreasonably withheld, and Lessor may require
Lessee to provide Lessor, at Lessee's sole cost and expense, a lien and completion bond in an amount equal to the estimated cost of such improvements, to insure Lessor against any liability for
mechanic's and materialmen's liens and to insure completion of the work. Should Lessee make any significant alterations, improvements, additions or Utility Installations without the prior approval of
Lessor, or use a contractor not expressly approved by Lessor, Lessor may require that Lessee remove any part or all of the same. Significant shall mean any job or work costing in excess of $5,000.00. 

(b)    Any
significant alterations, improvements, additions or Utility Installations in or about the Premises of the Office Building Project that Lessee shall desire to make shall be
presented to Lessor in written form with proposed detailed plans. If Lessor shall give its consent to Lessee's making such alteration, improvement, addition or Utility Installation, the consent shall
be deemed conditioned upon Lessee acquiring a permit to do so from the applicable governmental agencies, furnishing a copy thereof to Lessor prior to the commencement of the work, and compliance by
Lessee with all conditions of said permit in a prompt and expeditious manner. 

(c)    Lessee
shall pay, when due, all claims for labor or material furnished to or for Lessee at or for use in the Premises, which claims are or may be secured by any mechanic's or
materialmen's lien against the Premises, the Building or the Office Building Project, or any interest therein. 

(d)    Lessee
shall give Lessor not less than ten (10) day's notice prior to the commencement of any work in the Premises by Lessee, and Lessor shall have the right to post notices
of nonresponsibility in or on the Premises of the Building as provided by law. If Lessee shall, in good faith, contest the validity of any such lien, claim or demand, the Lessee shall, at its sole
expense, defend itself and Lessor against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof against the Lessor or the Premises,
the Building or the Office Building Project, upon the condition that if Lessor shall require, Lessee shall furnish to Lessor a surety bond satisfactory to Lessor in an amount equal to such contested
lien claim or demand indemnifying Lessor against liability for the same and holding the Premises, the Building and the Office Building Project free from the effect of such lien or claim. 

(e)    All
alterations, improvements, additions and Utility Installations (whether or not such Utility Installations constitute trade fixtures of Lessee), which may be made to the
Premises by Lessee, including but not limited to, floor coverings, paneling, doors, drapes, built-ins, moldings, sound attenuation, conduit, wiring and outlets, shall be made and done in a
good and workmanlike manner and of good and sufficient quality and materials and shall be the property of Lessor and remain upon and be surrendered with the Premises at the expiration of the Lease
term, unless Lessee removes them pursuant to paragraph 7.3(a). 

(f)    Lessee
shall provide Lessor with as-built plans and specifications for any significant alterations, improvements, additions or Utility Installations. 

7.4  Utility Additions.  Lessor reserves the right to install new or additional utility facilities throughout the Office
Building Project for the benefit of Lessor or Lessee or any other lessee of the Office Building Project, including, but not by way of limitation, such utilities as plumbing, electrical systems,
security systems, communication systems and fire protection and detection 

9

 

systems, so long as such installations do not unreasonably interfere with Lessee's use of the Premises. 

8.  Insurance: Indemnity.  

8.1  Liability Insurance—Lessee.  Lessee shall at Lessee's expense obtain and keep in force during the Term of
this Lease a policy of Comprehensive General Liability insurance utilizing an Insurance Services Office standard form with Broad Form General Liability Endorsement (GLO404) or equivalent coverage, in
an amount of not less than $1,000,000 per occurrence of bodily injury and property damage combined or in a greater amount as reasonably determined by Lessor. 

8.2  Liability Insurance—Lessor.  Lessor shall obtain and keep in force during the Term of this Lease a policy
of combined Single Limit Bodily Injury and Broad Form Property Damage Insurance, plus coverage against such other risks Lessor deems advisable from time to time, insuring Lessor, but not Lessee,
against liability arising out of the ownership, use, occupancy or maintenance of the Office Building Project in an amount not less than $1,000,000.00 per occurrence. 

8.3  Property Insurance—Lessee.  Lessee shall, at Lessee's expense, obtain and keep in force during the Term
of this Lease for the benefit of Lessee, replacement cost fire and extended coverage insurance, with vandalism and malicious mischief, sprinkler leakage and earthquake sprinkler leakage endorsements,
in an amount sufficient to cover not less than 100% of the full replacement cost, as the same may exist from time to time, of all of Lessee's personal property, fixtures, equipment and tenant
improvements. 

8.4  Property Insurance—Lessor.  Lessor shall obtain and keep in force during the Term of this Lease a policy
or policies of insurance covering loss or damage to the Office Building Project improvements, but not Lessee's personal property, fixtures, equipment or tenant improvements, in the amount of the full
replacement costs thereof, as the same may exist from time to time, utilizing Insurance Services Office standard form, or equivalent, providing protection against all perils included within the
classification of fire, extended coverage, vandalism, malicious mischief, plate glass and such other perils as Lessor deems advisable or may be required by a lender having a lien on the Office
Building Project. In addition, at Lessor's expense and not included as an Operating Expense, Lessor may obtain and keep in force, during the term of this Lease, a policy of rental value insurance
covering a period of one year, with loss payable to Lessor, which insurance shall also cover all Operating Expenses for said period. Lessee will not be named in any such policies carried by Lessor and
shall have no right to any proceeds therefrom. The policies required by these paragraphs 8.2 and 8.4 shall contain such deductibles as Lessor or the aforesaid lender may determine. In the event
that the Premises shall suffer an insured loss as defined in paragraph 9.1(f) hereof, the deductible amounts under the applicable insurance policies shall be deemed an Operating Expense. Lessee
shall not do or permit to be done anything which shall invalidate the insurance policies carried by Lessor. Lessee shall pay the entirety of any increase in the property insurance premium for the
Office Building Project over what it was immediately prior to the Term Commencement Date of this Lease if the increase is specified by
Lessor's insurance carrier as being caused by the nature of Lessee's occupancy or any act or omission of Lessee. 

8.5  Insurance Policies.  Lessee shall deliver to Lessor copies of liability insurance policies required under
paragraph 8.1 or certificates evidencing the existence and amounts of such insurance within seven (7) days after the Term Commencement Date of this Lease. No such policy shall be
cancelable or subject to reduction of coverage or other modification except after thirty (30) days prior written notice to Lessor. Lessee shall, at least thirty (30) days prior to the
expiration of such policies, furnish Lessor with renewals thereof. 

10

 

8.6  Waiver of Subrogation.  Lessee and Lessor each hereby release and relieve the other, and waive their entire right of
recovery against the other, for direct or consequential loss or damage arising out of or incident to the perils covered by property insurance carried by such party, whether due to the negligence of
Lessor or Lessee or their agents, employees, contractors and or invitees. All property insurance policies required under this Lease shall be endorsed to so provide. 

8.7  Indemnity.  

(a)    Indemnity by Lessee: Lessee shall indemnify and hold harmless Lessor and its agents, partners and lenders, from and against any and
all claims for damage to the person or property of anyone or any entity arising from Lessee's negligence or willful misconduct in connection with its use of the Office Building Project, or from the
conduct of Lessee's business and shall further indemnify and hold harmless Lessor from and against any and all claims, costs and expenses arising from any breach or default in the performance of any
obligation on Lessee's part to be performed under the terms of this Lease, or arising from any negligent or willful misconduct of Lessee, or any of Lessee's agents, contractors, employees or invitees
and from and against all reasonable costs, attorney's fees, expenses and liabilities incurred by Lessor as the result of any such use, conduct, activity, work, things done, permitted or suffered,
breach, default or negligence, and in dealing reasonably therewith, including but not limited to the defense or pursuit of any claim or any action or proceeding involved therein; and in case any
action or proceeding be brought against Lessor by reason of any such matter. Lessee upon notice from Lessor shall 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 so indemnified. 

9.  Damage or Destruction.  

9.1  Definitions.  

(a)    "Premises
Damage" shall mean if the Premises are damaged or destroyed to any extent. 

(b)    "Premises
Building Partial Damage" shall mean if the Building of which the Premises are a part is damaged or destroyed to the extent that the cost to repair is less than fifty
percent (50%) of the then Replacement Cost of the Building. 

(c)    "Premises
Building Total Destruction" shall mean if the Building of which the Premises are a part is damaged or destroyed to the extent that the cost to repair is fifty percent
(50%) or more of the then Replacement Cost of the Building. 

(d)    "Office
Building Project Buildings" shall mean all of the buildings on the Office Building Project site. 

(e)    "Office
Building Project Buildings Total Destruction" shall mean if the Office Building Project Buildings are damaged or destroyed to the extent that the cost of repair is fifty
percent (50%) or more of the then Replacement Cost of the Office Building Project Buildings. 

(f)    "Insured
Loss" shall mean damage or destruction which was caused by an event required to be covered by the insurance described in paragraph 8. The fact that an Insured Loss
has a deductible amount shall not make the loss an uninsured loss. 

(g)    "Replacement
Cost" shall mean the amount of money necessary to be spent in order to repair or rebuild the damaged area to the condition that existed immediately prior to the damage
occurring, excluding all improvements made by lessees, other than those installed by Lessor at Lessee's expense. 

11

 

9.2  Premises Damage; Premises Building Partial Damage.  

(a)    Insured
Loss: Subject to the provisions of paragraphs 9.4 and 9.5, if at any time during the Term of this Lease there is damage which is an Insured Loss and which falls into
the classification of either
Premises Damage or Premises Building Partial Damage, then Lessor shall, as soon as reasonably possible and to the extent the required materials and labor are readily available through usual commercial
channels, at Lessor's expense, repair such damage (but not Lessee's fixtures, equipment or tenant improvements originally paid for by Lessee) to its condition existing at the time of the damage and
this Lease shall continue in full force and effect. 

(b)    Uninsured
Loss: Subject to the provisions of paragraphs 9.4 and 9.5, if at any time during the Term of this Lease there is damage which is not an Insured Loss and which
falls within the classification of Premises Damage or Premises Building Partial Damage, which damage prevents Lessee from making any substantial use of the Premises, Lessor or Lessee may give written
notice to the other party within thirty (30) days after the date of the occurrence of such damage that it is the party's intent to terminate this Lease as of the date of the occurrence of such
damage, in which event this Lease shall terminate as of the date of the occurrence of such damage. In the event the Lease is not terminated, Lessor shall repair such damage as soon as reasonably
possible at Lessor' expense, except to the extent caused by a negligent or willful act of Lessee (in which event, to the extent that the repairs are required by a negligent or willful act of Lessee,
Lessee shall make the repairs at Lessee's expense). 

9.3  Premises Building Total Destruction: Office Building Project Total Destruction.  Subject to the provisions of
paragraphs 9.4 and 9.5, if at any time during the Term of this Lease there is damage, whether or not it is an Insured Loss, which falls into the classifications of either (i) Premises
Building Total Destruction, or (ii) Office Building Project Total Destruction, Lessee or Lessor may give written notice of termination to the other party within thirty (30) days after
the date of occurrence of such damage, in which case this Lease shall terminate as of the date of the occurrence of such damage. In the event neither party exercises its option to terminate, Lessor
shall repair such damage or destruction as soon as reasonably possible at Lessor's expense. 

9.4  Damage Near End of Term.  

(a)    Subject
to paragraph 9.4(b), if at any time during the last twelve (12) months of the Term of this Lease there is substantial damage to the Premises, Lessor or
Lessee may at either party's option cancel and terminate this Lease as of the date of occurrence of such damage by giving written notice to the other party of its election to do so within thirty
(30) days after the date of occurrence of such damage. 

(b)    Notwithstanding
paragraph 9.4(a), in the event that Lessee has an option to extend or renew this Lease, and the time within which said option may be exercised has not yet
expired, Lessee shall exercise such option, if it is to be exercised at all, no later than twenty (20) days after the occurrence of an Insured Loss falling within the classification of Premises
Damage during the last twelve (12) months of the Term of this Lease. If Lessee duly exercises such option during said twenty (20) day period, Lessor shall, at Lessor's expense, repair
such damage, but not Lessee's fixtures, equipment or tenant improvements, as soon as reasonably possible and this Lease shall continue in full force and effect. 

12

  

9.5  Abatement of Rent; Lessee's Remedies.  

(a)    In
the event Lessor repairs or restores the Building or Premises pursuant to the provisions of this paragraph 9, and any part of the Premises are not usable (including loss
of use due to loss of access or essential services), the rent payable hereunder (including Lessee's Share of Operating Expenses) for the period during which such damage, repair or restoration
continues shall be abated, provided the damage was not the result of the negligence of Lessee. 

(b)    If
Lessor shall be obligated to repair or restore the Premises or the Building under the provisions of this paragraph 9 and shall not commence such repair or restoration
within thirty (30) days after such occurrence, or if Lessor shall not complete the restoration and repair within one hundred fifty (150) days after such occurrence, Lessee may, at
Lessee's option: (1) cancel and terminate this Lease by giving Lessor written notice of Lessee's election to do so at any time prior to the commencement or completion, respectively, of such
repair or restoration, and in such event this Lease shall terminate as of the date of such notice; or (2) Lessee may at its sole cost and expense, repair or restore the Premises under this
paragraph 9, which said cost and expense shall be deducted from any rent payable hereunder. 

(c)    Lessee
agrees to cooperate with Lessor in connection with any such restoration and repair, including but not limited to the approval and or execution of plans and specifications
required. 

9.6  Termination—Advance Payments.  Upon termination of this Lease pursuant to this paragraph 9, an
equitable adjustment shall be made concerning advance rent and any advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee that amount of Lessee's security deposit that
has not theretofore been applied by Lessor. 

9.7  Waiver.  Lessor and Lessee waive the provisions of any statutes which relate to termination of leases when leased
property is destroyed and agree that such event shall be governed by the terms of this Lease. 

10.  Real Property Taxes.  

10.1  Payment of Taxes.  Lessor shall pay the real property tax, as defined in paragraph 10.3, applicable to the
Office Building Project subject to reimbursement by Lessee of Lessee's Share of such taxes in accordance with the provisions of paragraph 4.2(b)(v), except as otherwise provided in paragraph
10.2. 

10.2  Additional improvements.  Lessee shall not be responsible for paying any increase in real property tax specified in
the tax assessor's records and work sheets as being caused by additional improvements placed upon the Office Building Project by other lessees or by Lessor for the exclusive enjoyment of any other
lessee. Lessee shall, however, pay to Lessor at the time that Operating Expenses are payable under paragraph 4.2(f) the entirety of any increase in real property tax if assessed solely by
reason of additional improvements placed upon the Premises by Lessee or at Lessee's request. 

10.3  Definition of "Real Property Tax".  As used herein, the term "real property tax" shall include any form of real
estate tax or assessment, general, special, ordinary or extraordinary, and any license fee, commercial rental tax, improvement bond or bonds, levy or tax (other than inheritance, personal income or
estate taxes) imposed on the Office Building Project or any portion thereof by any authority having the direct or indirect power to tax, including any city, county, state or federal government, or any
school, agricultural, sanitary, fire, street, drainage or other improvement district thereof, as against any legal or equitable interest of Lessor in the Office Building Project or in any portion
thereof, as against Lessor's right to rent or other income therefrom, and as against Lessor's business of leasing the Office Building Project. The term "real 

13

 

property tax" shall also include any tax, fee, levy, assessment or charge (i) in substitution of, partially or totally, any tax, fee, levy, assessment or charge hereinabove included within the
definition of "real property tax", or (ii) the nature of which was hereinbefore included within the definition of "real property tax", or (iii) which is imposed for a service or right
not charged prior to June 1, 1978, or, if previously charged, has been increased since June 1, 1978, or (iv) which is imposed as a result of a change in ownership, as defined by
applicable local statutes for property tax purposes, of the Office Building Project or which is added to a tax or charge hereinbefore included within the definition of real property tax by reason of
such change of ownership, or (v) which is imposed by reason of this transaction, any modifications or changes thereto, or any transfers hereof. 

    Notwithstanding
anything in this Lease to the contrary, any increase in property taxes caused by a sale or transfer of the land and or improvements, which sale closes escrow after
July 14, 1998, shall not be included as an Operating Expense to Lessee. 

10.4  Joint Assessment.  If the improvements or property taxes which are to be paid separately by Lessee under
paragraph 10.2 or 10.5 are not separately assessed, Lessee's portion of that tax shall be equitably determined by Lessor from the respective valuations assigned in the assessor's work sheets or
such other information (which may include the cost of construction) as may be reasonably available. Lessor's reasonable determination thereof, in good faith, shall be conclusive. 

10.5  Personal Property Taxes.  

(a)    Lessee
shall pay prior to delinquency all taxes assessed against and levied upon trade fixtures, furnishings, equipment and all other personal property of Lessee contained in the
Premises or elsewhere. 

(b)    If
any of Lessee's said personal property shall be assessed with Lessor's real property, Lessee shall pay to Lessor the taxes attributable to Lessee within ten (10) days
after receipt of a written statement setting forth the taxes applicable to Lessee's property. 

11.  Utilities.  

11.1  Services Provided By Lessor.  Lessor will furnish for the Premises the following services, the expenses of which
shall be Operating Expenses under this Lease, except to the extent that the furnishing of such services may be limited by the rules and regulations of applicable utilities and of any governmental
authority: 

(a)    Air
conditioning (heating or cooling as required by the seasons), Mondays through Fridays from 7:00 a.m. to 6:00 p.m., and on Saturdays from 9:00 a.m. to
2:00 p.m., except on holidays, in temperatures and amounts which are reasonably required for comfortable occupancy under normal business operations. If Lessee requires air conditioning during
other hours, Lessor will furnish the same for the zones included in a written request by Lessee delivered to the manager of the Building before noon on the preceding business day. For this service,
Lessee shall pay to Lessor, promptly upon receipt of Lessor's statement, an amount equal to $25.00 per hour. 

(b)    Toilet
facilities, water for lavatory and toilet purposes, cold water for drinking and hot water for lavatory purposes, all at points of supply provided for the general use of
Lessee and tenants in the Building and in the Premises, through fixtures installed by Lessor or by Lessee with Lessor's consent. 

(c)    Passenger
elevators for access to and from the floor(s) on which the Premises are located, and freight elevator service only when scheduled through the manager of the Building.
Lessor may limit the number of elevators operating outside normal business hours. 

14

 

(d)    Electrical service and lighting for all public areas and special service areas of the Building and of the Premises, as reasonable and necessary to provide adequate and safe
lighting, including replacement of Building and Premises standard light bulbs and tubes. 

11.2  Services Exclusive to Lessee.  Lessee shall pay for all janitorial services specially or exclusively to the Lessee. 

11.3  Excess Usage by Lessee.  Lessor shall install at Lessee's expense supplemental equipment and or separate metering
applicable to Lessee's excess usage or loading. 

    Consumption
will be determined, through a separate meter or submeter installed, maintained and read by Lessor, at Lessee's cost. All installations of electrical fixtures, appliances
and equipment within the Premises shall be subject to Lessor's approval, and if they affect the temperature or humidity otherwise maintained, Lessor may, at Lessee's cost, install supplemental air
conditioning units. Any risers or wiring necessary to meet Lessee's excess electrical requirements will be installed by Lessor, on Lessee's written request, at Lessee's sole cost and expense, paid in
advance. 

11.4  Interruptions.  Unless caused by Lessor, there shall be no abatement of rent and Lessor shall not be liable in any
respect whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility or service due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor's
reasonable control or in cooperation with governmental request or directions. No such condition or event will constitute an eviction, actual or constructive, of Lessee, or relieve Lessee from any of
its obligations under this Lease. 

12.  Assignment and Subletting.  

12.1  Lessor's Consent Required.  Lessee shall not voluntarily or by operation of law assign, transfer, mortgage, sublet,
or otherwise transfer or encumber all or any part of Lessee's interest in the Lease or in the Premises, without Lessor's prior written consent, which Lessor shall not unreasonably withhold. Lessor
shall respond to Lessee's request for consent hereunder in a timely manner and any attempted assignment, transfer, mortgage, encumbrance or subletting without such consent shall be void, and shall
constitute a material default and breach of this Lease without the need for notice to Lessee under paragraph 13.1. "Transfer" within the meaning of this paragraph 12 shall not include
the transfer or transfers of the voting stock of Lessee. 

12.2  Lessee Affiliate.  Notwithstanding the provisions of paragraph 12.1 hereof, Lessee may assign or sublet the
Premises or any portion thereof without Lessor's consent to any corporation which controls, is controlled by or is under common control with Lessee or to any corporation resulting from the merger or
consolidation with Lessee, or to any person or entity which acquires all the assets of Lessee
as a going concern of the business that is being conducted on the Premises, all of which are referred to as "Lessee Affiliate", provided that before such assignment shall be effective, (a) said
assignee shall assume, in full, the obligations of Lessee under this Lease, and (b) Lessor shall be given written notice of such assignment and assumption. Any such assignment shall not, in any
way, affect or limit the liability of Lessee under the terms of this Lease even if after such assignment or subletting the terms of this Lease are materially changed or altered without the consent of
Lessee, the consent of whom shall not be necessary. 

12.3  Terms and Conditions Applicable to Assignment and Subletting.  

(a)    Regardless
of Lessor's consent, no assignment or subletting shall release Lessee of Lessee's obligations hereunder or alter the primary liability of Lessee to pay the rent and
other sums due Lessor hereunder including Lessee's Share of Operating Expenses, and to perform all other obligations to be performed by Lessee hereunder. 

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(b)    Lessor may accept rent from any person other than Lessee pending approval or disapproval of such assignment. 

(c)    Neither
a delay in the approval or disapproval of such assignment or subletting, nor the acceptance of rent, shall constitute a waiver or estoppel of Lessor's right to exercise its
remedies for the breach of any of the terms or conditions of this paragraph 12 or this Lease. 

(d)    If
Lessee's obligations under this Lease have been guaranteed by third parties, then an assignment or sublease, and Lessor's consent thereto, shall not be effective unless said
guarantors give their written consent to such sublease and the terms thereof. 

(e)    The
consent by Lessor to any assignment or subletting shall not constitute a consent to any subsequent assignment or subletting by Lessee or to any subsequent or successive
assignment or subletting by the sublessee. However, Lessor may consent to subsequent sublettings and assignments of the sublease or any amendments or modifications thereto without notifying Lessee or
anyone else liable on the Lease or sublease and without obtaining their consent and such action shall not relieve such persons from liability under this Lease or said sublease, provided, however, such
persons shall not be responsible to the extent any such amendment or modification enlarges or increases the obligations of the Lessee or sublessee under this Lease or such sublease. 

(f)    In
the event of any default under this Lease, Lessor may proceed directly against Lessee, any guarantors or any one else responsible for the performance of this Lease, including
the sublessee, without first exhausting Lessor's remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor or Lessee. 

(g)    Lessor's
written consent to any assignment or subletting of the Premises by Lessee shall not constitute an acknowledgment that no default then exists under this Lease of the
obligations to be performed by Lessee nor shall such consent be deemed a waiver of any then existing default, except as may be otherwise stated by Lessor at the time. 

(h)    The
discovery of the fact that any financial statement relied upon by Lessor in giving its consent to an assignment or subletting was materially false, shall, at Lessor's election,
render Lessor's said consent null and void. 

12.4  Additional Terms and Conditions Applicable to Subletting.  Regardless of Lessor's consent, 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 rentals and income arising from any sublease heretofore or hereafter made by Lessee, and Lessor may
collect such rent and income and apply same toward Lessee's obligations under this Lease provided, however, that until a default shall occur in the performance of Lessee's obligations under this
Lease, Lessee may receive, collect and enjoy the rents accruing under such sublease. Lessor shall not, by reason of this or any other assignment or such sublease to Lessor not by reason of the
collection of the rents from a sublessee, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of Lessee's obligations to such sublessee under such sublease.
Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a default exists in the performance of Lessee's obligations under this
Lease, to pay to Lessor the rents due and to become due under the sublease. Lessee agrees that such sublessee shall have the right to rely upon any such statement and request from Lessor, and that
such sublessee shall pay such rents to Lessor without any obligation or right to inquire as to whether such default exists and 

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notwithstanding any notice from or claim from Lessee to the contrary, Lessee shall have no right or claim against said sublessee for any such rents so paid by said sublessee to Lessor. 

(b)    No
sublease entered into by Lessee shall be effective unless and until it has been approved in writing by Lessor. In entering into any sublease, Lessee shall use only such form of
sublease as is satisfactory to Lessor, and once approved by Lessor, such sublease shall not be changed or modified
without Lessor's prior written consent. Any sublessee shall, by reason of entering into a sublease under this Lease, be deemed for the benefit of Lessor, to have assumed and agreed to conform and
comply with each and every obligation herein to be performed by Lessee other than such obligations as are contrary to or inconsistent with provisions contained in a sublease to which Lessor has
expressly consented in writing. 

(c)    Each
and every consent required of Lessee under a sublease shall also require the consent of Lessor. 

(d)    In
the event Lessee shall default in the performance of its obligations under this Lease, Lessor, at its option and without any obligation to do so, may require any sublessee to
attorn to Lessor, in which event Lessor shall undertake the obligations of Lessee under such sublease from the time of the exercise of said option to the termination of such sublease; provided,
however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to Lessee or for any other prior defaults of Lessee under such sublease. 

(e)    No
sublessee shall further assign or sublet all or any part of the Premises without Lessor's prior written consent. 

(f)    With
respect to any subletting to which Lessor has consented, Lessor agrees to deliver a copy of any notice of default by Lessee to the sublessee. Such sublessee shall have the
right to cure a default of Lessee within three (3) days after service of said notice of default upon such sublessee, and the sublessee shall have a right of reimbursement and offset from and
against Lessee for any such defaults cured by the sublessee. 

12.5  Lessor's Expenses.  In the event Lessee shall assign or sublet the Premises or request the consent of Lessor to any
assignment or subletting or if Lessee shall request the consent of Lessor for any act Lessee proposes to do, then Lessee shall pay Lessor's reasonable costs and expenses incurred in connection
therewith, not to exceed $500.00 per request, including attorneys', architects', engineers' or other consultants' fees. 

12.6  Conditions to Consent.  

(a)    With
any request for consent to an assignment, sublease, transfer or encumbrance, Lessee shall submit to Lessor a copy of all documents applicable thereto, and shall notify Lessor
of the name of the proposed assignee (accompanied by evidence of the nature, character and financial condition of it and its business), the proposed consummation date for the transaction, and all
terms and conditions (including rental) of or relating to the assignment, sublease, transfer or encumbrance. 

(b)    Lessor
reserves the right to condition any approval to assign or sublet upon Lessor's determination that the proposed assignee or sublessee shall conduct a business on the Premises
of a quality substantially equal to that of Lessee and consistent with the general character of the other occupants of the Office Building Project and not in violation of any exclusives or rights then
held by other tenants. 

12.7  Right to cancel.  Notwithstanding any other provision in this paragraph 12 to the contrary, within thirty
(30) days after Lessor's receipt of the request and supporting documents referred to in paragraph 12.6(a) above, (or any time, if no such request was made), Lessor, by notice to Lessee,
may terminate this Lease as of the proposed consummation date set forth in the request 

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(or as of a date designated by Lessor in its notice to Lessee, if no such request was made), as if that date were the original expiration date of this Lease. This paragraph 12.7 shall not apply
to a transfer to Lessee's Affiliate as defined in paragraph 12.2. 

13.  Default; Remedies.  

13.1  Default.  The occurrence of any one or more of the following events shall constitute a material default of this
Lease by Lessee: 

(a)    The
breach by Lessee of any of the covenants, conditions or provisions of paragraphs 7.3(a), (b) or (d) (alterations), 12.1 (assignment or subletting),
13.1(d) (insolvency), 13.1(e) (false statement), 16(a) (estoppel certificate), 30(b) (subordination), or 37 (easements), all of which are hereby deemed to be material, non-curable
defaults without the necessity of any notice by Lessor to Lessee thereof. 

(b)    The
failure by Lessee to make any payment of rent or any other payment required to be made by Lessee hereunder, as and when due, where such failure shall continue for a period of
ten (10) days after written notice thereof from Lessor to Lessee. In the event that Lessor serves Lessee with a Notice to Pay Rent or Quit pursuant to applicable Unlawful Detainer statutes,
such Notice to Pay Rent or Quit shall also constitute the notice required by this sub-paragraph. 

(c)    The
failure by Lessee to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Lessee other than those referenced in
subparagraphs (a) and (b), above, where such failure shall continue for a period of thirty (30) days after written notice thereof from Lessor to Lessee; provided, however, that if the
nature of Lessee's noncompliance is such that more than thirty (30) days are reasonably required for its cure, the Lessee shall not be deemed to be in default if Lessee commenced such cure
within a thirty (30) day period and thereafter diligently pursues
such cure to completion. To the extent permitted by law, such thirty (30) day notice shall constitute the sole and exclusive notice required to be given to Lessee under applicable Unlawful
Detainer statutes. 

(d)    (i) The
making by Lessee of any general arrangement or general assignment for the benefit of creditors; (ii) Lessee becoming a "debtor" as defined in 11 U.S.C.
Section 101 or any successor statute thereto (unless, in the case of a petition filed against the same is dismissed within ninety (90) 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 within ninety (90) 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 ninety (90) days. In the event that any provision of this paragraph 13.1(d) is contrary to any applicable law, such provisions shall be of no force of effect. 

(e)    The
discovery by Lessor that any financial statement given to Lessor by Lessee, or its successor in interest or by any guarantor of Lessee's obligation hereunder, was materially
false. 

13.2  Remedies.  In the event of any material default or material breach of this Lease by Lessee, Lessor may at any time
thereafter, with or without notice demand and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such default: 

(a)    Terminate
Lessee's right to possession of the Premises by any lawful means, in which case this Lease and the Term hereof shall terminate and Lessee shall immediately surrender
possession of the Premises to Lessor. In such event, Lessor shall be entitled to recover from 

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Lessee all damages incurred by Lessor by reason of Lessee's default 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 any real estate commission actually paid; the worth at the time of award by the court having jurisdiction thereof of the
amount by which the unpaid rent for the balance of the Term after the time of such award exceeds the amount of such rental loss for the same period that Lessee proved could be reasonably avoided; that
portion of the leasing commission paid by Lessor pursuant to paragraph 15 applicable to the unexpired Term of this Lease. 

(b)    Maintain
Lessee's right to possession in which case this Lease shall continue in effect whether or not Lessee shall have vacated or abandoned the Premises. In such event, Lessor
shall be entitled to enforce all of Lessor's rights and remedies under this Lease, including the right to recover the rent as it becomes due hereunder. 

(c)    Pursue
any other remedy now or hereafter available to Lessor under the laws or judicial decisions of the state wherein the Premises are located. 

13.3  Default by Lessor.  Lessor shall not be in default unless Lessor fails to perform obligations required of Lessor
within a reasonable time, but in no event later than thirty (30) days after written notice by Lessee to Lessor specifying wherein Lessor has failed to perform such obligation; provided,
however, that if the nature of Lessor's obligation is such that more than thirty (30) days are required for performance then Lessor shall not be in default if Lessor commences performance
within such thirty (30) day period and thereafter diligently pursues the same to completion. 

13.4  Late Charges.  Lessee hereby acknowledges that late payment by Lessee to Lessor of Base Rent, Lessee's Share of
Operating Expenses or other sums due hereunder 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 on Lessor by the terms of any mortgage or trust deed covering the Office Building Project. Accordingly,
if any installment of Base Rent, Operating Expense or any other sum due from Lessee shall not be received by Lessor or Lessor's designee within ten (10) days after such amount shall be due,
then, without any requirement for notice to Lessee, Lessee shall pay to Lessor a late charge equal to six percent (6%) of such overdue amount. The parties hereby agree that such late charge represents
a fair and reasonable estimate of the costs Lessor will incur by reason of late payment by Lessee. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee's default
with respect to such overdue amount, nor prevent Lessor from exercising any of the other rights and remedies granted hereunder. 

14.  Condemnation.  If the Premises or any portion thereof of the Office Building Project are taken under the power of
eminent domain, or sold under the threat of the exercise of said power (all of which are herein called "condemnation"), this Lease shall terminate as to the part so taken as of the date the condemning
authority takes title or possession, whichever first occurs; provided that if so much of the Premises of the Office Building Project are taken by such condemnation as would unreasonably affect the
operation and profitability of Lessee's business conducted from the Premises, Lessee shall have the option, to be exercised only in writing within thirty (30) days after Lessor shall have given
Lessee written notice of such taking (or in the absence of such notice, within thirty (30) days after the condemning authority shall have taken possession), to 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 rent and Lessee's Share of Operating Expenses shall be reduced in the proportion that the floor area of the Premises taken bears to the total floor area of the
Premises. Common Areas taken shall be excluded from the Common Areas usable by Lessee and no reduction of rent shall occur with respect thereto or by reason thereof. Lessor and Lessee shall each have
the option 

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in its sole discretion to terminate this Lease as of the taking of possession by the condemning authority, by giving written notice to Lessee or Lessor of such election within thirty (30) days
after receipt of notice of taking by condemnation of any part of the Premises or the Office Building Project. Any
award for the taking of all or any part of the Premises or the Office Building Project under the power of eminent domain or any payment made under threat of the exercise of such power shall be the
property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold or for the taking of the fee, or as severance damages; provided, however, that Lessee
shall be entitled to any separate award for loss of or damage to Lessee's trade fixtures, removable personal property and unamortized tenant improvements that have been paid for by Lessee. For that
purpose the cost of such improvements shall be amortized over the original term of this Lease excluding any options. In the event that this Lease is not terminated by reason of such condemnation,
Lessor shall to the extent of severance damages received by Lessor in connection with such condemnation, repair any damage to the Premises caused by such condemnation except to the extent that Lessee
has been reimbursed therefor by the condemning authority. 

15.  Broker's Fee.  Lessor shall pay the Sande Company a leasing commission, payable in full upon execution of this Lease,
four percent (4%) of the total lease consideration for Years 2 through 6, plus two percent (2%) of the total lease consideration for Years 7 through 12. 

16.  Estoppel Certificate.  

(a)    Each
party (as "responding party") shall at any time upon not less than ten (10) days prior written notice from the other party ("requesting party") execute, acknowledge and
deliver to the requesting party a statement in writing (i) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and
certifying that this Lease, as so modified, is in full force and effect) and the date to which the rent and other charges are paid in advance, if any, and (ii) acknowledging that there are not,
to the responding party's knowledge, any uncured defaults on the part of the requesting party, or specifying such defaults if any are claimed. Any such statement may be conclusively relied upon by any
prospective purchaser or encumbrancer of the Office Building Project or of the business of Lessee. 

(b)    At
the requesting party's option, the failure to deliver such statement within such time shall be a material default of this Lease by the party who is to respond, without any
further notice to such party, or it shall be conclusive upon such party that, (i) this Lease is in full force and effect, and 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. 

(c)    If
Lessor desires to finance, refinance, or sell the Office Building Project, or any part thereof, Lessee hereby agrees to deliver to any lender or purchaser designated by Lessor
such financial statements of Lessee as may be reasonably required by such lender or purchaser. Such statements shall include the past three (3) years financial statements of Lessee. 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.  Lessor's Liability.  

(a)    The
term "Lessor" as used herein shall mean only the owner or owners, at the time in question, of the fee title of the Office Building Project. In the event of any transfer of such
title or interest, Lessor herein named (and in case of any subsequent transfers then the grantor) shall be relieved from and after the date of such transfer of all liability as respects Lessor's
obligations thereafter to be performed, provided that any funds in the hands of Lessor or the then grantor at the time for such transfer in which Lessee has an interest shall be delivered to the
grantee. The 

20

 

obligations contained in this Lease to be performed by Lessor shall, subject as aforesaid, be binding on Lessor's successors and assigns, only during their respective periods of ownership. 

(b)    Any
liability of Lessor, its agents and employees, to Lessee, its agents and employees under this Lease, or arising in relation to it, is hereby limited to the interest of Lessor
in the Building, and Lessor, its agents and employees shall not be personally liable for any deficiency. The foregoing sentence does not limit or deny to Lessee any remedy which does not involve
personal liability. If Lessor impermissibly withholds, denies or delays any consent which Lessee is required to obtain, Lessee may seek specific performance. Lessor's review, supervision, comments
upon or approval of any aspect of work to be done by or for Lessee (under any Work Letter related to this Lease, as an alteration or addition, or otherwise) are solely for Lessor's protection and,
except as otherwise expressly provided, create no warranties or duties to Lessee or to any third party. 

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.  Time of Essence.  Time is of the essence with respect to the obligations to be performed under this Lease. 

20.  Additional Rent.  All monetary obligations of Lessee to Lessor under the terms of this Lease, including but not
limited to Lessee's Share of Operating Expense increases and any other expenses payable by Lessee hereunder, shall be deemed to be rent. 

21.  Incorporation of Prior Agreements; Amendments.  This Lease contains all agreements of the parties with respect to any
matter mentioned herein. No prior or contemporaneous agreement or understanding pertaining to any such matter shall be effective. This Lease may be modified in writing only, signed by the parties in
interest at the time of the modification. Except as otherwise stated in this Lease, Lessee hereby acknowledges that neither the real estate broker listed in paragraph 15 hereof nor
any cooperating broker on this transaction nor the Lessor or any employee or agents of any of said persons has made any oral or written warranties or representations to Lessee relative to the
condition or use by Lessee of the premises of the Office Building Project and Lessee acknowledges that Lessee assumes all responsibility regarding the Occupational Safety Health Act, the legal use and
adaptability of the Premises and the compliance thereof with all applicable laws and regulations in effect during the term of this Lease. 

22.  Notices.  Any notice required or permitted to be given hereunder shall be in writing, may be given by personal
delivery or by certified or registered mail and shall be deemed sufficiently given if delivered or addressed to Lessee or to Lessor at the address noted below or adjacent to the signature of the
representative parties, as the case may be. Mailed notices shall be deemed given upon actual receipt at the address required, or forty-eight (48) hours following deposit in the mail, postage
prepaid, whichever first occurs. Either party may by notice to the other specify a different address for notice purposes. 

23.  Waivers.  No waiver by Lessor of any provision hereof shall be deemed a waiver of any other provision hereof or of
any subsequent breach by Lessee of the same of any other provision. 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 act by Lessee. 

24.  Acceptance of Rent.  The acceptance of rent hereunder by Lessor shall not be a waiver of any preceding breach by
Lessee of any provision hereof, other than the failure of Lessee to pay the particular rent so accepted, regardless of the Lessor's knowledge of such preceding breach at the time of acceptance of such
rent. 

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25.  Holding Over.  If Lessee, without Lessor's consent, remains in possession of the Premises or any part thereof after
the expiration of the Term hereof, such occupancy shall be a tenancy from month to month upon all the provisions of this Lease pertaining to the obligations of Lessee, except that the rent payable
shall be one hundred fifty percent (150%) of the rent payable immediately preceding the termination date of this Lease, and all Options, if any, granted under the terms of this Lease shall be deemed
terminated and be of no further effect during said month to month tenancy. 

26.  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. 

27.  Covenants and Conditions.  Each provision of this Lease performable by Lessee or Lessor shall be deemed both a
covenant and a condition. 

28.  Binding Effect: Choice of Law.  Subject to any provisions hereof restricting assignment or subletting by Lessee and
subject to the provisions of paragraph 17, this Lease shall bind the parties, their personal representatives, successors and assigns. This Lease shall be governed by the laws of the State where the
Office Building Project is located and any litigation concerning this Lease between the parties hereto shall be initiated in the county in which the Office Building Project is located. 

29.  Subordination.  

(a)    This
Lease, and any Option or right of first refusal granted hereby, at Lessor's option, shall be subordinate to any ground lease, mortgage, deed of trust, or any other
hypothecation or security now or hereafter placed upon the Office Building Project and to any and all advances made on the security thereof and to all renewals, modifications, consolidations,
replacements and extensions thereof. Notwithstanding such subordination, Lessee's right to quiet possession of the Premises shall not be disturbed if Lessee is not in default and so long as Lessee
shall pay the rent and observe and perform all of the provisions of this Lease, unless this Lease is otherwise terminated pursuant to its terms. If any mortgagee, trustee or ground lessor shall elect
to have this Lease and any Options granted hereby prior to the lien of its mortgage, deed of trust, or ground lease, and shall give written notice thereof to Lessee, this Lease or such Options shall
be deemed prior to such mortgage, deed of trust or ground lease, whether this Lease or such Options are dated prior or subsequent to the date of said mortgage, deed of trust or ground lease or the
date of recording thereof. 

(b)    Lessee
agrees to execute any documents required to effectuate an attornment, a subordination, or to make this Lease or any Option granted herein prior to the lien of any mortgage,
deed of trust or ground lease, as the case may be. Lessee's failure to execute such documents within ten (10) days after written demand shall constitute a material default by Lessee hereunder
without further notice. 

(c)    Notwithstanding
anything in this Lease to the contrary, Lessor hereby agrees to obtain Subordination, Non-Disturbance and Attornment Agreements in the form mutually
acceptable to Lessor and Lessee ("Subordination Agreement") from each and every secured lender whose interest is senior or prior to Lessee's interest in the Premises. Lessor hereby agrees to provide
Lessee with written evidence of each such secured, senior lender and a Subordination Agreement from each such lender prior to the Term Commencement Date of the Lease. In the event Lessor fails to
obtain a Subordination Agreement from each lender, Lessee may, at its option, terminate this Lease by giving Lessor written notice of termination. In such event of termination, Lessor shall return any
sums paid by Lessee to Lessor. 

30.  Attorney's Fees.  

30.1    If
either party named herein brings an action to enforce the terms hereof or declare rights hereunder, the prevailing party in any such action, trial or appeal thereon, shall be
entitled to his 

22

 

reasonable attorney's fees to be paid by the losing party as fixed by the court in the same or a separate suit, and whether or not such action is pursued to decision or judgement. 

30.2    The
attorney's fee award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorney's fees reasonably incurred in good
faith. 

31.  Lessor's Access.  

31.1    Lessor
and Lessor's agents shall have the right to enter the Premises at reasonable times/upon twenty-four hours notice to Lessee for the purpose of inspecting same,
performing any services required of Lessor, showing the same to prospective purchasers, lenders, or lessees, taking such safety measures, erecting such scaffolding or other necessary structures,
making such alterations, repairs, improvements or additions to the Premises or to the Office Building Project as Lessor may reasonably deem necessary or desirable and the erecting, using and
maintaining of utilities, services, pipes and conduits through the Premises and/or other premises as long as there is no unreasonable adverse effect to Lessee's use of the Premises. Lessor may at any
time place on or about the Premises or the Building any ordinary
"For Sale" signs and Lessor may at any time during the last one hundred twenty (120) days of the Term hereof place on or about the Premises any ordinary "For Lease" signs. 

31.2    All
activities of Lessor pursuant to this paragraph shall be without abatement of rent. 

32.  Auctions.  Lessee shall not conduct, nor permit to be conducted, either voluntarily or involuntarily, any auction
upon the Premises or the Common Areas without first having obtained Lessor's prior written consent. Notwithstanding anything to the contrary in this Lease, Lessor shall not be obligated to exercise
any standard of reasonableness in determining whether to grant such consent. The holding of any auction on the Premises or Common Areas in violation of this paragraph shall constitute a material
default of this Lease. 

33.  Merger.  The voluntary or other surrender of this Lease by Lessee, or a mutual cancellation thereof, or a termination
by Lessor shall not work a merger, and shall, at the option of Lessor, terminate all or any existing subtenancies or may, at the option of Lessor, operate as an assignment to Lessor of any or all of
such subtenancies. 

34.  Consents.  Wherever in this Lease the consent of one party is required to an act of the other party, such consent
shall not be unreasonably withheld or delayed. 

35.  Quiet Possession.  Upon Lessee paying the rent for the Premises and observing and performing all of the covenants,
conditions and provisions on Lessee's part to be observed and performed hereunder, Lessee shall have quiet possession of the Premises for the entire term hereof subject to all of the provisions of
this Lease. The individuals executing this Lease on behalf of Lessor represent and warrant to Lessee that they are fully authorized and legally capable of executing this Lease on behalf of Lessor and
that such execution is binding upon all parties holding an ownership interest in the Office Building Project. 

36.  Security Measures—Lessor's Reservations.  

36.1    Except
as otherwise provided for in this Lease, Lessee hereby acknowledges that Lessor shall have no obligation whatsoever to provide guard service. Lessee assumes all
responsibility for the protection of Lessee, its agents, and invitees and the property of Lessee and of Lessee's agents and invitees from acts of third parties within the premises. Nothing herein
contained shall prevent Lessor, at Lessor's sole option, from providing security protection for the Office Building Project or any part thereof, in which event the cost thereof shall be included
within the definition of Operating Expenses, as set forth in paragraph 4.2(b). 

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36.2    In addition to its other rights retained or reserved herein, Lessor hereby reserves the following rights, exercisable without notice and without liability to Lessee, and without
effecting an eviction, constructive or actual, or in any way diminishing Lessee's obligations hereunder: 

(a)    To
permit any lessee the exclusive right to conduct any business as long as such exclusive does not conflict with any right expressly given herein; 

(b)    Subject
to the terms of this Lease, place such signs, notices or displays as Lessor reasonably deems necessary or advisable upon the roof, exterior of the buildings or the Office
Building Project or on pole signs in the Common Areas; 

(c)    Subject
to the terms of this Lease, designate and approve, prior to installation, all types of interior and exterior window treatments, and to control all internal lighting that
may be visible from the Common Areas or from the exterior of the Building; 

(d)    Subject
to the terms of this Lease, reasonably designate, limit, restrict and control any business and any service in or to the Building or its tenants; 

(e)    Provided
such activities do not unreasonably interfere with Lessee's use of the Premises, to decorate or make repairs, alterations, additions, changes or improvements, whether
structural or otherwise (specifically including but not limited to those in conjunction with Lessor's construction of additional buildings), in and about any part of the Office Building Project, to
enter the Premises for such purposes, to temporarily close doors, entryways, public space and corridors in the Office Building Project or any part thereof during such work, to interrupt or temporarily
suspend Building services and facilities, and to change the arrangement and location of entrances or passageways, windows, doors and doorways, corridors, elevators, stairs, toilets, or other public
parts of the Office Building Project or any part thereof. 

(f)    To
approve the weight, size and location of safes and other heavy equipment and articles in and about the Premises and the Building, and to require all such items and furniture to
be moved into and out of the Premises and the Building only at such times and in such manner as Lessor reasonably directs. The movement of Lessee's property is entirely the risk and responsibility of
Lessee. Lessor reserves the right to require permits before allowing any property to be moved into or out of the Premises or the Building; 

(g)    To
have access for Lessor and other tenants of the Building to any mail chutes located on the Premises according to the rules of the United States Postal Service. 

36.3    Lessee
shall not: 

(a)    Except
in connection with the maintenance of Lessee's signs, suffer or permit anyone, except in emergency, to go upon the roof of the Building. 

37.  Easements.  

37.1    Lessor
reserves to itself the right, from time to time, to grant such easements, rights and dedications that Lessor deems necessary or desirable and to cause the recordation of
Parcel Maps and restrictions, so long as such easements, rights, dedications, Maps and restrictions do not unreasonably interfere with the use of the Premises by Lessee. Lessee shall sign any of the
aforementioned documents upon request of Lessor and failure to do so shall constitute a material default of this Lease by Lessee without the need for further notice to Lessee. 

37.2    The
obstruction of Lessee's view, air, or light by any structure erected in the vicinity of the Building, whether by Lessor or third parties, shall in no way affect this Lease or
impose any liability upon Lessor 

24

 

38.  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 under the provisions of this
Lease. 

39.  Authority.  If Lessee is a corporation, trust, or general, or limited partnership, Lessee, and each individual
executing this Lease on behalf of such entity, represent and warrant that such individual is duly authorized to execute and deliver this Lease on behalf of said entity. If Lessee is a corporation,
trust or partnership, Lessee shall, within thirty (30) days after execution of this Lease, deliver to Lessor evidence of such authority satisfactory to Lessor. 

40.  Conflict.  Any conflict between the printed provisions, Exhibits or Addenda of this Lease and the typewritten or
handwritten provisions, if any, shall be controlled by the typewritten or handwritten provisions. 

41.  No Offer.  Preparation of this Lease by Lessor or Lessor's agent and submission of same to Lessee shall not be deemed
an offer to Lessee to Lease. This Lease shall become binding up-on Lessor and Lessee only when fully executed by both parties. 

42.  Multiple Parties.  If more than one person or entity is named as either Lessor or Lessee herein, except as otherwise
expressly provided herein, the obligations of the Lessor or Lessee herein shall be the joint and several responsibility of all persons or entities named herein as such Lessor or Lessee respectively. 

43.  Building Signage.  Lessor shall provide Lessee with exclusive building signage for the length of the Lease Term,
including extensions thereof. Lessee may sign the top area of the Building with large signs stating "Pacific Crest" or "Pacific Crest Bank," facing both Beech Street and Fifth Avenue as well as
appropriate signage on the exterior and interior of the space occupied by Lessee stating "Pacific Crest" or "Pacific Crest Bank." Lessee shall have exclusive signage rights in the lobby and first
floor parking area. Lessee shall have the right to change or replace signage as described herein as Lessee deems necessary. Lessee shall submit sign specifications to Lessor for Lessor's approval,
which will not be unreasonably withheld. Lessee's signs shall be tasteful and of high quality. It is understood that the signs must conform to City and Governmental code requirements. 

44.  Automatic Teller Machine.  Lessee may, at Lessee's cost, install an Automatic Teller Machine on the exterior of its
leased space. Lessee shall submit construction specifications to Lessor for Lessor's approval, which approval shall not be unreasonably withheld. 

45.  Mail Box.  Since Lessee receives a heavy volume of mail, Lessee shall be allotted ample mail box space immediately
contiguous to its Premises. 

46.  Competitive Factors.  During the term of this Lease and renewals thereof, Lessor shall not lease space in the
Building to competitors of Lessee, which shall include banks, savings and loans, credit companies, money funds, credit unions and thrift and loans, without the prior written consent of the Lessee. 

25

 

47.  Tenant Improvements.  Lessee shall lease the premises on an AS-IS basis. 

	

 	

 	
 	
LESSOR
	

 	

 	
 	
Gulf Construction Company,

A California corporation
	

Dated: 12/28/98	

 	
 	

By	
 	

/s/ SHAHRZAD DEHGHANI   
 Shahrzad Dehghani

Vice President
	 	 	 	Address:	 	444 Camino Del Rio S. (#101)

San Diego, CA 92108
	

 	

 	
 	
LESSEE
	

 	

 	
 	
Pacific Crest Bank,

A California corporation
	

Dated: 12/8/98	

 	
 	

By	
 	

/s/ LYLE LODWICK   
 Lyle Lodwick

Executive Vice President
	 	 	 	Address:	 	30343 Canwood St., Suite 100

Agoura Hills, CA 91301

26

 
 

EXHIBIT "A"
  Floor Plan    
  

    
A-1 

 
 

To Be Inserted    
  

 
 

EXHIBIT "B"
  Site Plan    
  

    
B-1 

 
 

EXHIBIT "B"
  
    [MAP]    
  

    
B-2 

  

 
 

EXHIBIT "C"
  
    RULES AND REGULATIONS    
  

Dated: 12/8/98

 
 

GENERAL RULES    
  

The
following general rules shall be subject to the terms of the Lease and in the event of any inconsistency between the two, the terms of the Lease shall control. 

	1.
	Lessee
shall not suffer or permit the obstruction of any Common Areas, including driveways, walkways and stairways.

	2.
	Lessor
reserves the right to refuse access to any persons Lessor in good faith judges to be a threat to the safety, reputation, or property of the Office Building Project and its
occupants.

	3.
	Lessee
shall not make or permit any noise or odors that annoy or interfere with other lessees or persons having business within the Office Building Project.

	4.
	Lessee
shall not keep animals or birds within the Office Building Project, and shall not bring bicycles, motorcycles or other vehicles into areas not designated as authorized for
same.

	5.
	Lessee
shall not make, suffer or permit litter except in appropriate receptacles for that purpose.

	6.
	Lessee
shall be responsible for the inappropriate use of any toilet rooms, plumbing or other utilities. No foreign substances of any kind are to be inserted therein.

	7.
	Lessee
shall not deface the walls, partitions or other surfaces of the Premises or Office Building Project.

	8.
	Lessee
shall not suffer or permit any thing in or around the Premises or Building that causes excessive vibration or floor loading in any part of the Office Building Project.

	9.
	Any
significant movement of furniture, or freight equipment shall be moved into or out of the Building only with the Lessor's knowledge and consent, and subject to such reasonable
limitations, techniques and timing, as may be designated by Lessor. Lessee shall be responsible for any damage to the Office Building Project arising from any such activity.

	10.
	In
connection with any significant alteration, Lessee shall not employ any service or contractor for services or work to be performed in the Building, except as approved by the
Lessor.

	11.
	Lessor
reserves the right to close and lock the Building on Saturdays, Sundays and legal holidays, between the hours of 6:00 p.m. and 7:00 a.m. of the following day.
If Lessee uses the Premises during such periods, Lessee shall be responsible for securely locking any doors it may have opened for entry.

	12.
	Lessee
shall review all keys at the termination of its tenancy and shall be responsible for the cost of replacing any keys that are lost.

	13.
	No
awnings shall be installed or used by Lessee.

	14.
	Neither
Lessee nor any of its employees or invitees shall go upon the roof of the Building without prior notice to Lessor.

	15.
	Lessee
shall not suffer or permit smoking or carrying of lighted cigars or cigarettes in areas reasonably designated by Lessor or by applicable governmental agencies as
non-smoking areas.

	16.
	Lessee
shall not use any method of heating or air conditioning other than as provided by Lessor. 

C–1

 
	17.
	Lessee
shall not install, maintain or operate any vending machines upon the Premises without the Lessor's written consent.

	18.
	The
Premises shall not be used for lodging or manufacturing, cooking or food preparation except as is incidental to Lessee's use of the Premises.

	19.
	Lessee
shall comply with all safety, fire protection and evacuation regulations established by Lessor or any applicable governmental agency.

	20.
	Lessor
reserves the fight to waive any one of these rules or regulations, and/or as to Lessee, and any such waiver shall not constitute a waiver of any other rule or regulation or
any subsequent application thereof to Lessee.

	21.
	Lessor
reserves the right to make such other reasonable rules and regulations as it way from time to time deem necessary for the appropriate operation and safety of the Office
Building Project and its occupants. Lessee agrees to abide by these and such rules and regulations. 

 
 

PARKING RULES    
  

	1.
	Parking
areas shall be used only for parking by vehicles no longer than full size, passenger automobiles herein called "Permitted Size Vehicles." Vehicles other than Permitted Size
Vehicles are herein referred to as "Oversized Vehicles."

	2.
	Lessee
shall not permit or allow any vehicles that belong to or are controlled by Lessee or Lessee's employees, suppliers, shippers, customers, or invitees to be loaded, unloaded,
or parked in areas other than those designated by Lessor for such activities.

	3.
	Parking
stickers or identification devices shall be the property of Lessor and shall be returned to Lessor by the holder thereof upon termination of the holder's parking privileges.
Lessee will pay such replacement charge as reasonably established by Lessor for the loss of such devices.

	4.
	Users
of the parking area will obey all posted signs and park only in the areas designated for vehicle parking.

	5.
	Unless
otherwise instructed, every person using the parking area is required to park and lock his own vehicle. Lessor shall not be responsible for any damage to vehicles, injury to
persons or loss of property, all of which risks are assumed by the party using the parking area.

	6.
	The
maintenance, washing, waxing or cleaning of vehicles in the parking structure or Common Areas is prohibited.

	7.
	Lessee
shall be responsible for seeing that all of its employees, agents, and invitees comply with the applicable parking rules, regulations, laws and agreements.

	8.
	Lessor
reserves the right to modify these rules and or adopt such other reasonable and non-discriminatory rules and regulations as it may deem necessary for the proper
operation of the parking area.

	9.
	Such
parking use as is herein provided is intended merely as a license only and no bailment is intended or shall be created hereby. 

C–2

 
 

FIRST AMENDMENT TO OFFICE LEASE
  BETWEEN GULF CONSTRUCTION COMPANY AND PACIFIC CREST BANK
  (Re: 1501 Fifth Avenue, San Diego)    
  

    The office Lease between GULF CONSTRUCTION COMPANY, a California corporation, as Lessor, and PACIFIC CREST BANK, a California corporation, as Lessee, executed
by Lessee on December 9, 1998, is hereby amended as follows: 

    1.  Paragraph 2.2
shall be replaced with the following paragraph: 

2.2  Vehicle Parking:  Lessee, as of the Term Commencement Date, and subject to the Rules and Regulations attached hereto
as Exhibit "C," shall be entitled to the exclusive use of eight (8) parking spaces (the entire first level parking area) within the Office Building Project. These spaces shall be payable
at $75 per space per month for the term, payable in advance on the first of each month, and any renewals or extensions thereof, with fixed annual increases of four percent (4%) commencing
January 1, 2000. 

    2.  Paragraph
2.2.1 is deleted. 

    3.  Paragraph
2.2.2 is deleted. 

    4.  The
following paragraphs are added: 

48.  Hazardous Materials:  Lessee will not use, store, or dispose of any hazardous substances upon the Premises, except
the use and storage of such substances that are customarily used in Lessee's business, and are in compliance with all environmental laws. Hazardous substances means any hazardous waste, substance or
toxic materials regulated under any environmental laws or regulations applicable to the property. Lessee will be responsible for the cost of removal or any toxic contamination caused by Lessee's use
of the Premises." 

49.  Americans with Disabilities Act:  "The parties are alerted to the existence of the Americans With Disabilities Act,
which may require costly structural modifications. The parties are advised to consult with a professional familiar with the requirements of the Act. 

    5.  All
other terms and conditions of the Office Lease shall remain in full force and effect. 

	

 	
 	

 	
 	

 	
 	

GULF CONSTRUCTION COMPANY, a California corporation
	

DATED:	
 	

1/4/99
	
 	

By:	
 	

/s/ SHAHRZAD DEHGHANI   
 SHAHRZAD DEHGHANI, Vice President
	

 	

 	

 	

 	

 	

 	

PACIFIC CREST BANK, a California corporation
	

DATED:	
 	

12/28/98
	
 	

By:	
 	

/s/ LYLE LODWICK   
 LYLE LODWICK

Executive Vice President

QuickLinks

EXHIBIT 10.10

Office Lease Between Gulf Construction Company and Pacific Crest Bank, dated December 4, 1998 (San Diego Branch)

1501 FIFTH AVENUE

OFFICE LEASE

Prepared For

PACIFIC CREST BANK

TABLE OF CONTENTS

OFFICE LEASE 1501 Fifth Avenue

EXHIBIT "A" Floor Plan

To Be Inserted

EXHIBIT "B" Site Plan

EXHIBIT "B" [MAP]

EXHIBIT "C" RULES AND REGULATIONS

GENERAL RULES

PARKING RULES

FIRST AMENDMENT TO OFFICE LEASE BETWEEN GULF CONSTRUCTION COMPANY AND PACIFIC CREST BANK (Re: 1501 Fifth Avenue, San Diego)

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