Document:

ex_10-3.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASTON
VIEWS CORPORATE CENTER

    

    OFFICE
BUILDING LEASE

    

    

    BETWEEN

    

    

    

    ASTON
VIEWS, LLC

    

    a
California limited liability company

    

    (Landlord)

    

    

    and

    

    

    CONVERA
CORPORATION

    

    a
Delaware  Corporation

    

    (Tenant)

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ASTON
VIEWS CORPORATE CENTER

    OFFICE
BUILDING LEASE

    

    

    Basic
Lease Provisions

    

    The following constitutes a summary of
the Basic Lease Provisions set forth in the Aston Views Corporate Center Office
Building Lease ("Lease") between the parties and regarding the Premises
specified below. The Basic Lease Provisions are an integral part of this Lease
and each reference in this Lease to any of the Basic Lease Provisions shall be
construed to incorporate all of the terms provided under each such Basic Lease
Provisions. In the event of any conflict between any Basic Lease Provisions and
the balance of the Lease, the latter shall control.

    

     

    
      	
               
      

            	
              1.

            	
              DATE:

            	
              July
      3, 2001 (for reference purposes
only).

            

    

     

    

     

    
      	
               
      

            	
              2.

            	
              PARTIES:

            

    

     

    

     

    
      	
               
      

            	
              Landlord:

            	
              Aston
      Views, LLC, a California limited liability
  company.

            

    

     

    

     

    
      	
               
      

            	
              Tenant:

            	
              Convera
      Corporation, a Delaware Corporation

            

    

     

    

     

    
      	
               
      

            	
              3.

            	
              PREMISES:

            

    

     

    

     

    
      	
               
      

            	
              A.

            	
              Building
      Address:

            	
              1808
      Aston Avenue

            

    

     

    
      	
               
      

            	
              Carlsbad,
      California 92008

            

    

     

    

     

    
      	
               
      

            	
              B.

            	
              Floor:

            	
              1st
      and 2nd Floors.

            

    

     

    

     

    
      	
               
      

            	
              C.

            	
              Location:

            	
              First
      and second floor space, as described in Exhibit A attached
      hereto.

            

    

     

    

     

    
      	
               
      

            	
              D.

            	
              Rentable
      Square Footage:

            	
              Approximately
      30,411 rentable square feet.

            

    

     

    

     

    
      	
               
      

            	
              E.

            	
              Parking
      Spaces:

            	
              122
      unreserved; no additional charge during Initial Lease Term and any option
      periods; exact number of spaces to be confirmed once final usable square
      footage amount has been determined.

            

    

     

    

     

    
      	
               
      

            	
              4.

            	
              TERM:

            

    

     

    

    A.           TeOffice
Lease (1808 Aston Avenue, Carlsbad, California) commencing November 1,
2001

     

    
      	
               
      

            	
              rm
      of Lease:

            	
              61
      months Initial Term.

            

    

     

    

     

    
      	
               
      

            	
              B.

            	
              Scheduled
      Commencement Date:

            	
              Upon
      completion of Tenant Improvements (the date of which shall be when final
      inspection of the tenant improvements is approved by the City of
      Carlsbad), but not sooner than November 1,
2001.

            

    

     

    

     

    
      	
               
      

            	
              C.

            	
              Rent
      Commencement Date:

            	
              December
      1, 2001, or one (1) month following the Scheduled Commencement
      Date.

            

    

     

    

     

    
      	
               
      

            	
              D.

            	
              Option
      to Renew:

            	
              One
      (1) five (5) year option as set forth on
  Addendum.

            

    

     

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    

     

    
      	
               
      

            	
              5.

            	
              RENT:

            

    

     

    

     

    
      	
               
      

            	
              A.

            	
              Initial
      Monthly Base Rent

            	
              $1.85
      per rentable square foot per month plus
  utilities.

            

    

     

    

     

    
      	
               
      

            	
              B.

            	
              Annual
      Increase to Base Rent:

            

    

     

    

     

    
      	
               
      

            	
              (i)

            	
              Annual Cost of
      Living Increase:

            	
              As described in
      Section 3.2.1 of the Lease.

            

    

     

    

     

    
      	
               
      

            	
              (ii)

            	
              Percentage
      Increase:

            	
              3%
      Fixed Increase over previous year (See
below)

            

    

     

    

     

    
      	
               
      

            	
              (iii)

            	
              Scheduled
      Increase:

            

    

     

    
      	
               
      

            	
              Month
      of

            	
              Monthly
      Base Rent per

            

    

     

    
      	
               
      

            	
              Lease
      Term

            	
              Sq. Ft. of Net
      Rentable Area

            

    

     

    
      	
               
      

            	
              1-12

            	
              $1.85
      (plus utilities)

            

    

     

    
      	
               
      

            	
              13-24

            	
              $1.906
      (plus utilities)

            

    

     

    
      	
               
      

            	
              25-36

            	
              $1.963
      (plus utilities)

            

    

     

    
      	
               
      

            	
              37-48

            	
              $2.022
      (plus utilities)

            

    

     

    
      	
               
      

            	
              49-60

            	
              $2.082
      (plus utilities)

            

    

     

    

     

    
      	
               
      

            	
              C.

            	
              Base
      Rent Paid Upon

            

    

     

    
      	
               
      

            	
              Execution:

            	
              $56,260.35
      to be applied against rent beginning on the Rent Commencement
      Date.

            

    

     

    

     

    
      	
               
      

            	
              D.

            	
              Utilities:

            	
              Utilities
      shall be separately metered to the Premises and paid directly by Tenant to
      the utility supplier. Landlord shall provide without cost to Tenant the
      janitorial service described in Paragraph 6 of Exhibit
  C.

            

    

     

    

     

    
      	
               
      

            	
              6.

            	
              TENANT'S
      EXPENSE

            

    

     

    
      	
               
      

            	
              STOP
    BASE:

            	
              To
      be determined based upon actual Operating Expenses during the base year,
      which is calendar year 2002 with Operating
      Expenses for such base year to be grossed up, if necessary, to assume 95%
      occupancy and a fully assessed
Project.

            

    

     

    
      	
               
      

            	
              Increases
      in Operating Expenses shall be charged to Tenant as Additional Rent
      beginning in the 13th full month of the
Term.

            

    

     

    

     

    
      	
               
      

            	
              See
      Addendum for additional Operating Expense
  language.

            

    

     

    

     

    
      	
               
      

            	
              7.

            	
              TENANT'S
      OPERATING

            

    

     

    
      	
               
      

            	
              EXPENSE
      PERCENTAGE:

            	
              36.6%
      (the ratio that the Rentable Square Footage of the Premises bears to the
      Rentable Square Footage in the Building); exact percentage to be confirmed
      once final rentable square footage has been
  determined.

            

    

     

    

     

    
      	
               
      

            	
              8.

            	
              LEASEHOLD
      IMPROVEMENTS:

            

    

     

    

     

    
      	
               
      

            	
              A.

            	
              Tenant's
      Allowance for

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
               
      

            	
              Leasehold
      Improvements:

            	
              $35.00
      per rentable square foot.  See Addendum for additional Tenant
      Allowance language.

            

    

     

    

     

    
      	
               
      

            	
              B.

            	
              Leasehold
      Improvement

            

    

     

    
      	
               
      

            	
              Management
      Fee:

            	
              _____% of total
      construction costs to be charged against Tenant's Allowance for
      Improvements.

            

    

     

    

     

    
      	
               
      

            	
              9.

            	
              SECURITY
      DEPOSIT:

            	
              $56,260.35

            

    

     

    

     

    

     

    
      	
               
      

            	
              10.

            	
              PERMITTED
      USE OF

            

    

     

    
      	
               
      

            	
              PREMISES:

            	
              Tenant
      will operate office, sales, administrative, software engineering and
      related lab functions within the Building, and will have the right to use
      the Premises for any other legally permitted
  use.

            

    

     

    

     

    
      	
               
      

            	
              11.

            	
              TENANT'S
      INITIAL LIABILITY

            

    

     

    
      	
               
      

            	
              INSURANCE
      LIMITS:

            	
              $2,000,000
      per person for personal injury or
death;

            

    

     

    
      	
               
      

            	
              $2,000,000
      per occurrence for personal injury or death;
and

            

    

     

    
      	
               
      

            	
              $1,000,000
      per occurrence for damage to
property.

            

    

     

    

     

    
      	
               
      

            	
              12.

            	
              BROKER(S):

            

    

     

    

     

    
      	
               
      

            	
              A.

            	
              Landlord's
      Broker:

            	
              Kent
      Moore, Rick Reeder, and Dan Oury

            

    

     

    
      	
               
      

            	
              Business
      Real Estate Brokerage Company

            

    

     

    

     

    
      	
               
      

            	
              B.

            	
              Tenant's
      Broker:

            	
              Brian
      Ffrench

            

    

     

    
      	
               
      

            	
              Irving
      Hughes

            

    

     

    

     

    
      	
               
      

            	
              13.

            	
              GUARANTOR(S):

            	 	 

    

     

    
      	
               
      

            	 

    

     

    
      	
               
      

            	 

    

     

    

     

    
      	
               
      

            	
              14.

            	
              NOTICE:

            

    

     

    

     

    
      	
               
      

            	
              To
      LANDLORD:

            	
              Copy
      to:

            

    

     

    
      	
               
      

            	
              Aston
      Views, LLC

            	
              Spectrum
      Property Management

            

    

     

    
      	
              4370
      La Jolla Village Drive, Suite 655

            	
              8799
      Balboa Avenue, Suite 260

            

    

     

    
      	
               
      

            	
              San
      Diego, CA 92122.

            	
              San
      Diego, CA 92123

            

    

     

    
      	
               
      

            	
              Attn:
      Mark D. McLaren

            	
              Attn:
      Brenda Tworoger

            

    

     

    

     

    
      	
               
      

            	
              To
      TENANT:

            	
              Copy
      to:

            

    

     

    
      	
               
      

            	
              Convera
      Corporation

            	
              Convera
      Corporation

            

    

     

    
      	
               
      

            	
              1921
      Gallows Road, Suite 200

            	
              1921
      Gallows Road, Suite 200

            

    

     

    
      	
               
      

            	
              Vienna,
      VA  22182

            	
              Vienna,
      VA  22182

            

    

     

    
      	
               
      

            	
              Attn:
      Martin Nowakowski

            	
              Attn:
      Marc Martin

            

    

     

    

     

    

    15.           SIGNS:                                Tenant
shall have the right to a building sign in a “top tier” location on an exterior
wall of the

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
               
      

            	
              building,
      the exact location of which shall be mutually agreed upon by Landlord and
      Tenant, and one (1) section of a four-tenant monument sign to be placed at
      the project entry.  Both signs shall be subject to approvals by
      the City of Carlsbad and the business park association.  Tenant
      shall be responsible for the cost of all approvals, construction,
      installation, and fees associated with the above-mentioned signs. Landlord
      to provide standard lobby directory and standard tenant door signage at
      Landlord’s expense.  Tenant shall also have the right to install
      signage within its Premises.

            

    

     

    

    16.           EXHIBITS AND
ADDENDA:                                                                Exhibits
A through F and Addendum to Lease are attached to this Lease and incorporated
herein by reference.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    

    
      	
              SECTION PAGE

            	 
      
	 
      	 
      
	
              1.         PREMISES
      AND COMMON AREAS

            	
              1

            
	
              1.1         Premises

            	
              1

            
	
              1.2         Common
      Areas

            	
              1

            
	
              1.3         Common
      Areas Rules and Regulations

            	
              1

            
	
              1.4         Conditions
      of Premises

            	
              1

            
	
              1.5         Changes
      to Common Areas

            	
              2

            
	 
      	 
      
	
              2.         TERM

            	
              2

            
	 
      	 
      
	
              2.1         Length
      of Term

            	
              2

            
	
              2.2         Commencement
      Date

            	
              2

            
	 
      	 
      
	
              3.         RENT

            	
              2

            
	 
      	 
      
	
              3.1         Base
      Rent

            	
              3

            
	
              3.2         Annual
      Increase to Base Rent

            	
              3

            
	
              3.3         Additional
      Rent

            	
              3

            
	
              3.4         Tenant's
      Charges

            	
              5

            
	
              3.5         Late
      Charges

            	
              5

            
	
              3.6         Interest
      on Past Due Obligations

            	
              5

            
	
              3.7         Security
      Deposit

            	
              5

            
	 
      	 
      
	
              4.
      USE

            	
              6

            
	 
      	 
      
	
              4.1         Permitted
      Uses

            	
              6

            
	
              4.2         Prohibited
      Uses

            	
              6

            
	
              4.3         Changes
      in Use

            	
              6

            
	
              4.4         Compliance
      With Laws

            	
              6

            
	
              4.5         Insurance
      Use Requirements

            	
              6

            
	 
      	 
      
	
              5.         MAINTENANCE,
      REPAIR AND ALTERATION OF PREMISES

            	
              6

            
	 
      	 
      
	
              5.1         Maintenance
      and Repair

            	
              6

            
	
              5.2         Alterations

            	
              7

            
	
              5.3         Condition
      on Termination

            	
              7

            
	 
      	 
      
	
              6.         UTILITIES
      AND SERVICES

            	
              7

            
	 
      	 
      
	
              6.1         Utilities
      and Services Furnished by Landlord

            	
              7

            
	
              6.2         Utilities
      and Services Furnished by Tenant

            	
              7

            
	
              6.3         Interruption
      of Service

            	
              7

            
	 
      	 
      
	
              7.         INSURANCE
      AND INDEMNITY

            	
              8

            
	 
      	 
      
	
              7.1         Tenant's
      Liability Insurance

            	
              8

            
	
              7.2         Tenant's
      Casualty Insurance

            	
              8

            
	
              7.3         Form
      of Insurance Policies

            	
              8

            
	
              7.4         Landlord
      Insurance

            	
              8

            
	
              7.5         Waiver
      of Liability of Landlord

            	
              8

            
	
              7.6         Landlord’s
      Liability

            	
              9

            
	
              7.7         Indemnity
      by Tenant of Landlord

            	
              9

            
	
              7.8         Indemnity
      by Landlord of Tenant............................................................

            	
              9

            
	
              7.9         Waiver
      of Subrogation

            	
              9

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              8.         DAMAGE
      OR DESTRUCTION

            	
              9

            
	 
      	 
      
	
              8.1         Definitions

            	
              9

            
	
              8.2         Premises
      Damage; Premises Building Partial Damage

            	
              10

            
	
              8.3         Building
      Total Destruction; Project Total Destruction

            	
              10

            
	
              8.4         Damage
      Near End of Term

            	
              10

            
	
              8.5         Abatement
      of Rent: Tenant's Remedies

            	
              10

            
	
              8.6         Termination-Advance
      Payments

            	
              11

            
	
              8.7         Waiver

            	
              11

            
	
              8.8         Insurance
      Limitation

            	
              11

            
	 
      	 
      
	
              9.         TAXES

            	
              11

            
	 
      	 
      
	
              10.         ASSIGNMENT
      AND SUBLETTING

            	
              11

            
	 
      	 
      
	
              10.1                 Prohibition
      of Assignment or Sublet

            	
              11

            
	
              10.2                 Procedure
      for Consent

            	
              12

            
	
              10.3                 Continuing
      Obligation of Tenant

            	
              12

            
	
              10.4                 Additional
      Terms and Conditions Applicable to Subletting

            	
              12

            
	
              10.5                 Excess
      Rent

            	
              13

            
	
              10.6                 No
      Merger

            	
              13

            
	 
      	 
      
	
              11.         DEFAULT

            	
              13

            
	 
      	 
      
	
              11.1                 Default
      by Tenant

            	
              13

            
	
              11.2                 Landlord's
      Remedies

            	
              13

            
	
              11.3                 Inducement,
      Recapture and Effect of Breach

            	
              14

            
	
              11.4                 Right
      of Landlord to Re-Enter

            	
              14

            
	
              11.5                 Default
      by Landlord

            	
              14

            
	 
      	 
      
	
              12.         ENVIRONMENTAL
      MATTERS

            	
              14

            
	 
      	 
      
	
              12.1                 Definitions

            	
              14

            
	
              12.2                 Legal
      Requirements

            	
              15

            
	
              12.3                 Environmental
      Indemnification By Tenant

            	
              15

            
	
              12.4                 Tenant's
      Remedial Action Responsibility

            	
              16

            
	
              12.5                 Inspection
      Rights

            	
              16

            
	
              12.6                 Survival
      of Article

            	
              16

            
	 
      	 
      
	
              13.         LANDLORD'S
      RIGHT TO ENTRY AND TO RELOCATE PREMISES

            	
              16

            
	 
      	 
      
	
              13.1                 Right
      to Entry

            	
              16

            
	
              13.2                 Relocation of
      Premises

            	
              16

            
	 
      	 
      
	
              14.         CONSTRUCTION
      OF PREMISES

            	
              16

            
	 
      	 
      
	
              15.         SIGNS

            	
              17

            
	 
      	 
      
	
              16.         SECURITY

            	
              17

            
	 
      	 
      
	
              17.         EMINENT
      DOMAIN

            	
              17

            
	 
      	 
      
	
              18.         SUBORDINATION

            	
              17

            
	 
      	 
      
	
              19.         ESTOPPEL
      CERTIFICATE

            	
              18

            
	 
      	 
      
	
              20.         ATTORNEYS'
      FEES

            	
              18

            
	 
      	 
      
	
              21.         PARKING                                                                                                        

            	
              18

            
	 
      	 
      
	
              22.         NOTICE                                                                                                        

            	
              18

            
	 
      	 
      
	
              22.1                 Manner
      of Service

            	
              18

            
	
              22.2                 Change
      of Place of Service

            	
              18

            
	 
      	 
      
	
              23.         HOLDING
      OVER BY TENANT

            	
              18

            
	 
      	 
      
	
              24.         WAIVER                                                                                                        

            	
              19

            
	 
      	 
      
	
              25.         TIME
      OF THE ESSENCE

            	
              19

            
	 
      	 
      
	
              26.         SUCCESSORS
      AND ASSIGNS

            	
              19

            
	 
      	 
      
	
              27.         LANDLORD'S
      RESERVATIONS

            	
              19

            
	 
      	 
      
	
              28.         BROKERAGE
      COMMISSION

            	
              19

            
	 
      	 
      
	
              29.         FINANCIAL
      STATEMENTS

            	
              19

            
	 
      	 
      
	
              30.         FORCE
      MAJEURE

            	
              20

            
	 
      	 
      
	
              31.         GOVERNING
      LAW

            	
              20

            
	 
      	 
      
	
              32.         CAPTIONS
      AND INTERPRETATIONS

            	
              20

            
	 
      	 
      
	
              33.         SEVERABILITY

            	
              20

            
	 
      	 
      
	
              34.         LEASE
      NOT EFFECTIVE UNTIL EXECUTED; AUTHORITY TO
      EXECUTELEASE

            	 
      
	 
      	 
      
	
              35.         EXHIBITS
      AND ADDENDA TO LEASE

            	
              20

            
	 
      	 
      
	
              36.         GUARANTY

            	
              20

            
	 
      	 
      
	
              37.         RECORDATION
      OF LEASE

            	
              20

            
	 
      	 
      
	
              38.         ENTIRE
      AGREEMENT

            	
              20

            
	 
      	 
      
	
              SIGNATURES

            	
              21

            
	 
      	 
      
	 
      	 
      
	
              EXHIBITS

            	 
      
	 
      	 
      
	
                    Reference
      Section

            	 
      
	
              A.         Premises
      Floor Plan

            	
              1.1

            
	
              B.         Rules
      and Regulations

            	
              1.3

            
	
              C.         Standards
      for Utilities and Services

            	
              6.1

            
	
              D.         Work
      Letter Agreement

            	
              14

            
	
              E.         Guaranty of
      Lease

            	
              36

            
	
              F.         Form
      of Estoppel Certificate

            	
              19

            
	 
      	 
      
	 
      	 
      
	
              ADDENDA

            	 
      
	 
      	 
      
	
              ADDENDUM
      TO LEASE

            	
              3
      pages

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASTON
VIEWS CORPORATE CENTER

    OFFICE
BUILDING LEASE

    

    

    This
Lease is made and entered into at Carlsbad, California, on the 3rd day of July,
2001 between Aston Views, LLC, a California limited liability company
("Landlord") and Convera Corporation, a Delaware Corporation ("Tenant") as
follows:

    

    

    1.           PREMISES AND COMMON
AREAS.

    

    1.1           Premises. Landlord hereby
leases to Tenant and Tenant hereby leases from Landlord, for the term, at the
rental, and upon all of the terms, covenants and conditions set forth herein,
those certain premises ("Premises"), described in the Basic Lease Provisions and
depicted on the floor plan attached hereto as Exhibit "A," located at 1808 Aston
Avenue, Carlsbad, California, including parking facilities, landscaping and
appurtenances ("Building"). The Premises, the Building, the other buildings in
the development, the Common Areas (defined below) and the land upon which the
same are located are included within the development commonly described as Aston
Views Corporate Center ("Project").   The actual amount of rentable square
footage in the Premises to be confirmed by an Architect at Landlord’s cost using
appropriate standards of measurement.

    1.2           Common Areas. All areas of the
Buildings and the real property in the Project that are provided and designated
by the Landlord from time to time for the general, nonexclusive use of Landlord,
tenants of the Building and the Project and their respective agents, employees,
suppliers, shippers, customers and invitees, including, without limiting the
generality of the foregoing, entrances and exits, hallways, stairwells,
elevators, restrooms, sidewalks, driveways, parking areas (subject to the right
of Landlord or its licensee to control access thereto, and to charge for its
use), landscaped areas, and other areas and improvements provided by Landlord
for the common use of Landlord and tenants and their respective employees and
invitees, shall be deemed "Common Areas." The Premises shall include the
nonexclusive right to use the Common Areas in common with and subject to the
right of other tenants in the Building and the Project, and subject to the rules
and regulations established by Landlord.

    

    1.3           Common Areas Rules and
Regulations. Tenant agrees to abide by and conform to the Rules and
Regulations attached hereto as Exhibit "B" with respect to the Project and
Common Areas, and to cause its employees, suppliers, shippers, customers and
invitees to so abide and conform. Landlord or such other person(s) as Landlord
may appoint shall have 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 provided such
modification does not adversely affect Tenant’s rights or obligations under the
Lease. Landlord shall not be responsible to Tenant for the noncompliance
with said Rules and Regulations by other tenants of the Project, their agents,
employees and invitees.

    

    1.4           Condition of
Premises.

    

    1.4.1           Landlord
shall deliver the Premises to Tenant in a clean condition on the Lease
Commencement Date (unless Tenant is already in possession) and Landlord warrants
to Tenant that the plumbing, lighting, air conditioning, and heating system in
the Premises shall be in good operating condition. In the event that it is
determined that this warranty has been violated, then it shall be the obligation
of Landlord, after receipt of written notice from Tenant setting forth with
specificity the nature of the violation, to promptly, at Landlord's sole cost,
rectify such violation. Tenant's failure to give such written notice to Landlord
within  ninety
(90) days after the Lease Commencement Date or the date that Tenant takes
possession of the Premises, whichever is earlier, shall result in the conclusive
presumption that Landlord has complied with all of its obligations hereunder,
that the Premises are fully completed and are suitable for Tenant's Purposes,
that the Building and every part of it, including the Premises, are in good and
satisfactory condition.

    

    

    1.4.2           Landlord
warrants to Tenant that the Premises, in the state existing on the date that the
Lease Term commences, but without regard to alterations or improvements made by
Tenant or to the use for which Tenant will occupy the Premises, does not violate
any covenants or restrictions of record, or any applicable law or ordinance in
effect on the Lease Commencement Date, that would substantially and adversely
affect the operation and profitability of Tenant's business conducted from the
Premises. In the event that it is determined that this warranty has been
violated, it shall be the obligation of Landlord, after receipt of written
notice from Tenant setting forth with specificity the nature of the violation,
to promptly, at Landlord's sole cost, rectify such violation. Tenant's failure
to give such written notice to Landlord within thirty (30) days after the Lease
Commencement Date or the date that Tenant takes possession of the Premises,
whichever is earlier, shall result in the conclusive presumption that Landlord
has complied with all of its obligations hereunder.

    

    1.4.3           Except
as otherwise provided in this Lease, Tenant hereby accepts the Premises and the
Building Project in their condition existing as of the Lease Commencement Date
or the date that Tenant takes possession of the Premises, whichever is earlier,
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. Tenant acknowledges that it has satisfied itself by its own independent
investigation that the Premises are suitable for its intended use, and that
neither Landlord nor Landlord's agent or agents have made any representation or
warranty as to the present or future suitability of the Premises, Common Areas,
or Building Project for the conduct of Tenant's business.

    

    1.5           Changes to Common Areas.
Landlord shall have the right, in Landlord's sole discretion, from time to time
to: (a) 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, entrances,
parking spaces, parking areas, loading and unloading areas, ingress, egress,
direction of traffic, decorative walls, landscaped areas and walkways; provided,
however, Landlord shall at all times (a) provide the parking facilities required
by the Base Lease
Provisions; (b) close temporarily any of the Common Areas for maintenance
purposes so long as reasonable access to the Premises remains available; (c)
designate other land and improvements outside the boundaries of the Project to
be a part of the Common Areas, provided that such other land and improvements
have a reasonable and functional relationship to the Project; (d) add additional
buildings and improvements to the Common Areas; (e) use the Common Areas while
engaged in making additional improvements, repairs or alterations to the
Project, or any portion thereof, and (f) do and perform such other acts and make
such other changes in, to or with respect to the Common Areas and Project as
Landlord may, in the exercise of sound business judgment deem to be appropriate,
and no such changes shall entitle Tenant to any abatement of
rent.  Any actions
taken by Landlord under this Section 1.5 shall not adversely affect Tenant’s
rights or obligations under the Lease.

    

    2.           TERM

    

    2.1           Length of Term. The term of
this Lease ("Term") shall be for the Term specified in the Basic Lease
Provisions, plus any partial month following the commencement of the Term
("Commencement Date") if such date is other than the first day of a calendar
month.

    

    2.2           Commencement Date. The Commencement Date
shall be the earliest of (a) the date on which Tenant takes possession of or
commences business operations upon the Premises or any part thereof ("Lease
Commencement Date"); or (b) the date on which Landlord's Work (as described in
Section 14 below) is substantially completed ("Rental Commencement
Date"). The Commencement
Date of the Lease shall be thirty (30) days after the Premises are substantially
complete.  Substantial Completion shall be evidenced when (a) final
inspection is approved by the City of Carlsbad and Tenant is legally permitted
to occupy the Premises for the conduct of its business; (b) all Building systems
are in good working order to support the operation of the Premises; and (c) the
Tenant Improvements are complete excepting industry-standard punch-list
items.

    

    2.2.1 Notwithstanding the Scheduled
Commencement Date set forth in the Basic Lease Provisions, if for any reason
Landlord cannot deliver possession of the Premises to Tenant on said date,
Landlord shall not be subject to any liability therefor, nor shall such failure
affect the validity of this Lease or the obligations of Tenant hereunder or
extend the term hereof, but in such case, Tenant shall not be obligated to pay
rent or perform any other obligations of Tenant under the terms of this Lease,
except as may be otherwise provided in this Lease, until possession of the
Premises is delivered to Tenant. If, however, Landlord shall not have delivered
possession of the Premises within sixty (60)
days following said Scheduled Commencement Date for any reason, other than
Tenants Delays as defined in the Work Letter attached hereto as Exhibit "D" and
delays beyond the reasonable control of Landlord, Tenant may, at Tenant's
option, by notice in writing to Landlord within ten (10) days thereafter, advise
Landlord of Tenant's intent to cancel this Lease. Within ten (10) days after its
receipt of such notice, Landlord shall submit to Tenant a statement of all costs
and expenses incurred or irrevocably committed by Landlord for non-standard
improvements to the Premises up to the date of Landlord's receipt of Tenant's
notice of intent to cancel. This Lease shall thereafter be cancelled, and the
parties shall be discharged from all obligations hereunder, if and only if
Tenant reimburses Landlord for all such costs and expenses as stated in
Landlord's notice within ten (10) days after Tenant's receipt thereof, and
Landlord shall thereupon return any money previously deposited by Tenant. If
such written notice of intent to cancel by Tenant is not timely received by
Landlord, or Tenant's reimbursement for such costs and expenses is not timely
received by Landlord, as aforesaid, then in either such event Tenant's right to
cancel this Lease hereunder shall terminate and be of no further force or
effect.

    

    2.2.2 Possession of the premises shall
be deemed delivered to Tenant when (1) the improvements to be provided by
Landlord under this Lease are substantially completed, (2) the Building
Utilities are ready for use in the Premises, and (3) Tenant has reasonable
access to the Premises.

    

    2.2.3 If Tenant occupies the Premises
prior to said Commencement Date (other than to install and/or store
furniture and equipment), such occupancy shall be subject to all
provisions of this Lease, such occupancy shall not change the termination date,
and Tenant shall pay rent for such occupancy.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.           RENT

    

    3.1           Base Rent. Subject to
adjustment as provided in this Lease, Tenant shall pay to Landlord for each full
calendar month during the Term the Monthly Base Rent specified in the Basic
Lease Provisions and other charges under this Lease. The Monthly Base Rent shall
be payable in advance on the first day of each calendar month without any
deduction or offset. The Monthly Base Rent for any fractional part of a calendar
month at the beginning or end of the term shall be prorated based upon a 30-day
month and 360-day year. Payment of Base Rent shall be made to Landlord at its
address stated herein or to such other persons or at such other addresses as
Landlord may from time to time designate in writing to Tenant.

    

    3.2           Annual
Increase to Base Rent.

    

    3.2.1           Cost
of Living Adjustment. The Monthly Base Rent
shall be adjusted on each annual anniversary of the Commencement Date to reflect
increases, if any, in the cost of living. The adjustment, shall be calculated by
reference to the Consumer Price Index of the Bureau of Labor Statistics of the
Department of Labor for All Urban Consumers, All Items, for the Los
Angeles-Anaheim-Riverside Metropolitan Area (herein referred to as "CPI"). On
each such adjustment date, the Monthly Base Rent shall be increased to an amount
computed by multiplying the initial Monthly Base Rent by a fraction, the
numerator of which is the CPI most recently available and published prior to the
anniversary of the Commencement Date for which the annual adjustment is being
made. and the denominator of which is the CPI most recently available and
published as of the Commencement Date. Notwithstanding the foregoing, in no
event shall the Monthly Base Rent be decreased from the previous year’s Monthly
Base Rent on any such adjustment date.

    

    3.2.1.2                  If the Bureau of Labor
Statistics discontinues publication of the CPI, or publishes it less frequently,
or alters it in some other manner, then Landlord shall adopt a substitute CPI
that reasonably monitors and reflects changes in consumer
prices.

    

    3.2.1.3                  Tenant shall continue to
pay the rent at the rate previously in effect until the increase, if any, is
determined. Within five (5) days following the date on which the increase is
determined, Tenant shall make such payment to Landlord as will bring the
increased rental current, commencing with the effective date of such increase
through the date of any rental installments then due. Thereafter, the rental
shall be paid at the increased rate.

    

    3.2.2           Percentage Adjustment. The
Monthly Base Rent shall be increased on each annual anniversary of the Rent Commencement Date by the
percentage set forth in Item 5(b)(ii) of the Basic Lease
Provisions.

    

    3.2.3           Scheduled
Increase.
The Monthly Base Rent shall be increased according to the schedule set forth in
Item 5(b)(iii) of the Basic Lease Provisions.

    

    3.3           Additional Rent.

    

    3.3.1           In
addition to the Monthly Base Rent and other sums to be paid by Tenant to
Landlord, Tenant shall pay to Landlord as additional rent the amount by which
Tenant's share of Operating Expenses (defined below) for any lease year or part
thereof during the term exceeds Tenant's Expense Stop Base, as set forth in the
Basic Lease Provisions. Tenant's share of Operating Expenses shall be an amount
equal to the product of the Operating Expenses multiplied by Tenant's Operating
Expense Percentage specified in the Basic Lease Provisions. For partial lease
years during the term, the annual Operating Expenses and Tenant's Expense Stop
Base shall be prorated on a daily basis using a 30-day month and 360-day year to
determine the amount of additional rent due to Landlord.

    

    3.3.2           Landlord
shall be entitled to make an estimate of Operating Expenses projected for each
lease year. Landlord shall be entitled to revise such estimate at any time and
from time to time during the lease year to increase or decrease the estimate of
Operating Expenses. If Landlord notifies Tenant that Landlord's estimate (or any
revised estimate) of Operating Expenses would result in an obligation of Tenant
to pay additional rent, then upon request by Landlord, Tenant shall pay
one-twelfth (1/12) of such estimated additional rent on the first day of each
month in advance together with the Monthly Base Rent. If Landlord shall so
notify Tenant after the commencement of a lease year, then with the next payment
of rent due, Tenant shall also pay to Landlord one-twelfth (1/12) of such
estimated additional rent for each month of such lease year which has already
elapsed.

    

    3.3.3           Landlord
shall provide Tenant with an annual statement showing Tenant's share of the
annual Operating Expenses over Tenants Expense Stop Base, if any, for the prior
lease year, together with any proration. Landlord shall use all reasonable
efforts to deliver the annual statement within one hundred twenty (120) days
after the end of the lease year; provided, however, that failure of Landlord to
deliver the annual statement within such period shall not impair or constitute a
waiver of Tenant's obligations to pay additional rent or cause Landlord to incur
any obligation for damages. If the amount of the additional rent due for the
lease year exceeds any amount paid by Tenant as estimated additional rent for
such lease year, then Tenant shall pay such excess to Landlord within thirty (30) days of receipt
of Landlord's statement. If the amounts paid as estimated additional rent for a
lease year exceed the amount of Tenant's obligation shown on the annual
statement, then Tenant shall be entitled to a credit against monthly
installments of estimated additional rent due for the then current year. If no
further sums of additional rent are or will become due against which the excess
can be credited, then, subject to offset at Landlord's election against other
sums owed by Tenant, Landlord shall pay such excess to Tenant within ten (10)
days after delivery of the annual statement. All obligations to pay additional
rent and/or the obligation of Landlord to credit or reimburse Tenant for any
excess payment of estimated additional rent shall survive expiration of the term
or earlier termination of this Lease.

    

    3.3.4           Tenant
shall have a period of  sixty (60) days after
delivery of the annual statement of Operating Expenses to question or challenge
the amount shown thereon by giving written notice to Landlord specifying the
items which are challenged. Tenant waives and relinquishes the right to
challenge or object to the amounts shown at any time after expiration of
such  sixty
(60) day period. If Tenant timely challenges any item shown on the annual
statement, Tenant shall then have a period of  ninety (90) days from the date of Tenant’s
challenge in which to inspect, during business hours upon reasonable
written notice to Landlord at Landlord's office, Landlord's records relating to
the challenged item or items. Tenant shall give written notice to Landlord prior
to expiration of such  ninety (90) days of whether
Tenant continues to challenge any of the items originally objected to, in which
case a certification as to proper amount shall be made by Landlord's independent
certified public accountant, which certification shall be final and conclusive.
The cost of such review shall be paid by Tenant, unless such review reveals an
error resulting in an overcharge to Tenant of five percent (5%) or more, in
which case the cost of such review shall be paid by Landlord. If Tenant fails to
review the records or fails to give timely written notice to Landlord that it
continues to object, then Tenant shall be deemed to have waived its objection
and shall have no further right to challenge or object thereto. Notwithstanding
any objection or challenge of Tenant, Tenant shall pay the amount claimed by
Landlord to be due as and when provided for herein, pending the resolution of
Tenant's objection.

    

    3.3.5           "Operating
Expenses" of the Building mean any and all costs and expenses of ownership,
operation, management, maintenance and repair of the Building, including the
parking facilities and Common Areas. Operating Expenses include, but are not
limited to, each of the following costs and expenses:

    

    3.3.5.1                 All
costs and expenses of utilities furnished to the Building and not separately
metered to individual tenants, including. without limitation, all costs and
expenses attributable to supply of electrical service, water and sewage service,
natural gas, cable television or other electronic or microwave signal reception,
telephone service or other communication, steam, heat, cooling, or any other
service which is now or in the future a utility furnished to the
Building.

    

    3.3.5.2                 All
real property taxes, which shall include (a) any form of tax or assessment,
license fee, license tax, tax or excise on rent or any other levy, charge,
expense or imposition made or required by any federal, state, county, city,
district or other political subdivision on any interest of Landlord and/or
Tenant in the Premises or the Building, including without limitation, the
underlying real property and appurtenances; (b) any fee for services charged by
any governmental agency or quasi-governmental agency for any services such as
fire protection, street, sidewalk and road maintenance, refuse collection,
school systems, or other services provided to property owners and residents
within the general area of the Building; (c) any governmental impositions
allocable to or measured by the area of the Premises or the amount of any rent
payable under this Lease, including, without limitation, any tax on gross
receipts or any excise tax or other charges levied by any federal, state,
county, city, district or other governmental agency or political subdivision
with respect to rent or upon or with respect to the operation, maintenance,
alteration, repair, use or occupancy of the Premises or any portion thereof; (d)
any impositions by any governmental agency on this Lease transaction or with
respect to any document to which Tenant is a party creating or transferring an
interest or an estate in the Premises; and (e) any increase in any of the
foregoing based upon construction of improvements at the Building or changes in
ownership (as defined in the California Revenue and Taxation Code) of the
Building. Real property taxes shall not include taxes on the Landlord's net
income, state franchise taxes or any inheritance, estate or gift
taxes.

    

    3.3.5.3                 Operating
costs and common facilities costs, which shall include all reasonable costs of managing,
operating, maintaining and repairing the Building, including all Common Areas
and facilities of the Building. Such costs shall include, without limitation,
all expenses for insurance obtained by Landlord (including, without limitation,
public liability, contractual liability, property damage, fire and extended
coverage, sprinkler damage, theft, malicious mischief and vandalism, flood,
rental interruption, boiler and machinery, earthquake, all risk coverage, and
other coverages in such amounts as  a reasonably prudent Landlord
would carry in connection with ownership and operation of a first class
building in San Diego County, California, or such other insurance as may be
required by any present or future lender of loans secured by the Building),
labor and supplies, license, permit and inspection fees, all assessments and
special assessments due to deed restrictions, declarations and/or owners
associations which accrue against the Building, the cost of compensation
(including employment taxes, similar governmental charges, and fringe benefits)
with respect to all persons who perform duties in connection with landscaping,
janitorial, painting, window washing and general cleaning services, security
services and any other services related to the operation, maintenance or repair
of the Building (as well as the cost of all supplies, materials, tools and
equipment used in conjunction therewith), the fair market rental value of the
Building management office, management fees (at an attributed fair market rate
not to exceed 4% of gross
rent if Landlord itself provides such management services), legal
expenses, accounting expenses, and consultant's fees.

    

    3.3.5.4                 If
the Building is not at least 90% 95%
occupied during all or a portion of any lease year including the base year for Tenant’s
Expense Stop Base, then Landlord shall make an appropriate adjustment of
the Operating Expenses for such lease year to determine what the Operating
Expenses would have been for such year if the Building had been 95% occupied, and the amount
so determined shall be deemed to be the amount of the Operating Expenses for
such year.

    

    3.3.5.5                 All
costs and expenses for replacement of equipment or improvements that have a
useful life of five (5) years or less, amortized on a straight line basis over
such useful life.

    

    3.3.5.6                 All
costs and expenses for operation, management, maintenance and repair of the
parking facilities.

    

    3.3.5.7                 Appropriate
reserves to provide for maintenance, repair and replacement of improvements in
the Building, as determined by Landlord consistent with prudent accounting
practices.

    3.3.5.8                 Any
other service to be provided by Landlord that is elsewhere in this Lease stated
to be an "Operating Expense."

    

    3.3.5.9                 The
costs of any capital improvements made to the Building for the purpose of
reducing Operating Expenses or pursuant to the requirements of any governmental
entity, such costs to be amortized over their useful life.

    

    

    3.3.6           Operating
Expenses shall not include the following costs and expenses:

    

    3.3.6.1                 Depreciation
of the Building.

    

    3.3.6.2                 Payments
of principal and interest on any loans secured by the Building.

    
      	
              3.3.6.3  

            	
              Any
      expenses paid by Tenant directly to third parties, or as to which Landlord
      is otherwise reimbursed by any third party, any other tenant or insurance
      proceeds.

            

    

    

    
      	
              3.3.6.4  

            	
              Interest
      or penalties for late payment of real estate
  taxes.

            

    

    

    
      	
              3.3.6.5  

            	
              Capital
      improvements, except as allowed by Section
  3.3.5.8.

            

    

    

    3.3.6.6                 Commissions
paid for leasing, construction permits and fees, or costs of alteration of the
Building.

    

    3.4           Tenant's
Charges.                                           Charges
for any services, goods or materials furnished by Landlord at Tenant's request,
and charges for services, goods and materials furnished by Landlord as a result
of extraordinary uses or demands by Tenant in excess of those typical of other
tenants in the Building with general office usage, shall not be included in
Operating Expenses but shall be payable by Tenant as additional rent within
thirty (30) days after Landlord delivers a statement for such services, goods or
materials to Tenant.

    

    3.5           Late Charges. Tenant hereby
acknowledges that late payment by Tenant to Landlord of the Monthly Base Rent,
Tenant's share of Operating Expenses or other sums due hereunder will cause
Landlord 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, administrative, processing and accounting charges, and late charges
which may be imposed on Landlord by the terms of any mortgage or trust deed
covering the Project.  Accordingly, if any installment of the Monthly
Base Rent, Operating Expenses, or any other sum due from Tenant shall not be
received by Landlord or Landlord's designee within ten (10) days after such
amount shall be due, then, without any requirement for notice to Tenant,Tenant
shall pay to Landlord a late charge equal to  five percent (5%) of such
overdue amount. Landlord shall
hereby grant Tenant one (1) free mistake in any twelve (12) month period whereby
no late charge shall be assessed on the overdue amount.  The
parties hereby agree that such late charge represents a fair and reasonable
estimate of the costs Landlord will incur by reason of late payment by Tenant.
Acceptance of such late charge by Landlord shall in no event constitute a waiver
of Tenant's default with respect to such overdue amount, nor prevent Landlord
from exercising any of the other rights and remedies granted
hereunder.

    

    3.6           Interest on Past Due
Obligations. Any amount due from Tenant to Landlord hereunder which is
not paid when due shall bear interest at the rate of ten percent (10%) per annum, or the
maximum rate then allowable by law, whichever is lower, from the
due date until paid, The payment of interest on such amounts shall not excuse or
cure any default by Tenant under this Lease; provided, however, that interest
shall not be payable on late charges to be paid by Tenant under this
Lease.

    

    3.7           Security Deposit. Tenant shall
pay to Landlord, immediately upon execution of this Lease, the sum specified in
the Basic Lease Provisions as security for the full and faithful performance of
every provision of this Lease to be performed by Tenant. If Tenant defaults with
respect to any provisions of this Lease, including, but not limited to, the
provisions relating to the payment of rent, Landlord may (but shall not be
required to) use, apply or retain all or any part of this security deposit for
the payment of any rent or any other sum in default, or for the payment of any
other amount which Landlord may spend or become obligated to spend by reason of
Tenant's default, or to compensate Landlord for any other loss or damage which
Landlord may suffer by reason of Tenant's default. If any portion of said
deposit is so used or applied, Tenant shall, within ten (10) days after 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 material breach of this Lease.  Landlord shall not be required to
keep this security deposit separate from its general funds, and Tenant shall not
be entitled to interest on such deposit. No trust relationship is created hereby
with respect to such security deposit. If Tenant shall fully and faithfully
perform every provision of this Lease to be performed by it, the security
deposit or any balance thereof shall be returned to the Tenant (or at the
Landlord's option, to the last assignee of Tenant's interests hereunder) within thirty (30) days upon
expiration of the Term.

    

    4.           USE

    

    4.1           Permitted Uses. Tenant shall
use and occupy the Premises during the Term of this Lease solely for and in
accordance with the use specified in the Basic Lease Provisions and for no other
use or uses without the prior written consent of Landlord, which consent can be
granted or withheld in Landlord's absolute discretion. Tenant shall not use or
permit the use of the Premises in a manner that creates waste or a nuisance, or
that disturbs owners and/or occupants of, or causes damage to, neighboring
premises or properties.

    

    4.2           Prohibited Uses.
Notwithstanding any other provision of this Lease, Tenant shall not use the
Premises or any part thereof for the purpose of operating an executive,
administrative or legal business center providing office space, administrative
and support services to sublessees or other users occupying the Premises for
general office purposes.

    

    4.3           Changes in Use. No change in
the restrictions on use of the Premises set forth in this Lease shall be
permitted without the prior written consent of Landlord, which consent may be
granted or withheld in the sole and absolute discretion of
Landlord.

    

    4.4           Compliance With Laws. Tenant
shall comply with all laws, ordinances, rules and regulations pertaining
to  Tenant’s
use of the Premises or the Building. Tenant 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 Tenant or any of its agents, employees, licensees or
invitees. Tenant 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 Landlord in its management thereof, and shall not injure the
reputation of the Building. Tenant agrees to abide by all reasonable rules and
regulations established by Landlord from time to time with respect to the
Building. A copy of the rules and regulations in existence on the date of this
Lease is attached hereto as Exhibit "B," but Landlord reserves the right to
amend the rules and regulations at any time by giving notice of amendment to
Tenant, if Landlord determines such amendments to be to the best interests of
the Building and its tenants and do not materially
adversely affect
Tenant’s rights or obligations under the Lease.

    

    4.5           Insurance Use Requirements.
Tenant shall neither use nor occupy the Premises in any manner, nor commit or
omit any act, resulting in a cancellation or reduction of any insurance or
increase in premiums on any insurance policy covering the Premises, or the
property or Building. Tenant shall, at its expense, comply with all requirements
of any insurer pertaining to the use of the Premises and reasonably necessary
for maintenance of economic and proper fire, liability and other insurance
desired to be carried by Landlord. Tenant shall promptly, upon demand, reimburse
Landlord for any additional premium charged for any insurance policy by reason
of Tenant's failure to comply with the provisions of this Section.

    

    5.           MAINTENANCE,
REPAIR AND ALTERATION OF PREMISES

    

    5.1           Maintenance and Repair.
Landlord shall repair and maintain the structural and mechanical portions of the
Building, including basic plumbing, heating, ventilating, air conditioning and
electrical systems installed or furnished by Landlord, and Landlord shall keep
all Common Areas in good, clean and sanitary order, and the costs thereof shall
be includable as Operating Expenses; provided, however, that if maintenance and
repairs are caused by the act, neglect, or omission of any duty by Tenant, its
agents, servants, employees or contractors, then Tenant shall pay to Landlord,
as additional rent, the reasonable cost of such maintenance and repairs (less insurance proceeds received by
Landlord). Except as provided in Paragraph 8.5, there shall be no
abatement of rent or liability to Tenant on account of any injury or
interference with Tenant's business with respect to any improvements,
alterations or repairs made by Landlord to the Project or any part thereof.
Tenant expressly waives the benefits of any statute now or hereafter in effect
which would otherwise afford to Tenant a right to make repairs at Landlord's
expense or to terminate this Lease because of Landlord's failure to keep the
Premises in good order, condition and repair. Notwithstanding Landlord's
obligation to the keep the  Building in good condition
and repair, for that portion of the cost of any maintenance and repair of
the  Building
or any equipment (wherever located) that serves only Tenant or the Premises,
Tenant shall be responsible for payment of the cost thereof to Landlord as
additional rent to the extent such cost is attributable to causes related to Tenant’s specific
use beyond normal wear and tear. Tenant shall be responsible for the cost
of painting, repairing or replacing wallcoverings, and for the cost of repairing
or replacing any Premises improvements that are not ordinarily a part of the
Building or that require maintenance at a level more expensive than that
prevailing in the Buildings. Landlord may, at its option, upon reasonable
notice, elect to have Tenant perform any maintenance or repair, the cost of
which is solely
Tenant's responsibility hereunder.

    

    5.2           Alterations. Tenant shall make
no alterations, additions or improvements to the Premises (whether structural or
nonstructural) without Landlord's prior written consent, which consent shall not be unreasonably withheld,
delayed or conditioned. If any alteration, addition or improvement is
made by Tenant without such consent, Landlord shall have the right to require
Tenant to remove the same at any time during the Term. If Tenant shall request
Landlord's consent for any alterations, additions or improvements, then Tenant
shall submit detailed plans, specifications and an itemized budget for making
such alterations, additions or improvements. Landlord may impose any conditions
to any consent as Landlord shall in its discretion deem to be necessary or
advisable, including without limitation the hours when work may be performed.
Any approved alteration, addition or improvement shall be made only by
contractors or mechanics approved by both Tenant and Landlord.
Tenant shall provide Landlord with as-built plans and specifications for any
alterations, additions or improvements. Tenant covenants and agrees that all
work done by Tenant shall be performed in full compliance with all laws, rules,
orders, ordinances, regulations, permits and requirements of any insurance
rating bureau used by insurers selected to carry Landlord's insurance, and of
any similar body. Tenant shall pay, when due, all claims for labor or materials
furnished or alleged to have been furnished to or for Tenant at or for use on
the Premises, which claims are or may be secured by any mechanics or
materialmen's lien against the Premises or any interest therein. If Tenant
shall, in good faith, contest the validity of any such lien, claim or demand,
then Tenant shall, at its sole expense defend and protect itself, Landlord, and
the Premises against the same and shall pay and satisfy any such adverse
judgment that may be rendered thereon before the enforcement thereof against the
Landlord or the Premises. Before commencing any work, Tenant shall give Landlord
at least five business
(5) days' written notice of the proposed commencement of such work and
shall, if required by Landlord, secure at Tenant's own cost and expense, a
completion and lien indemnity bond satisfactory to Landlord for said work and
such other comprehensive general public liability insurance, builders risk
insurance, and other such insurance coverages so as to protect the insurable
interests of Landlord, Tenant, contractors and subcontractors in amounts and on
forms as may be requested by Landlord. Landlord may enter upon the Premises, in
such case, for the purpose of posting appropriate notices, including, but not
limited to, notices of nonresponsibility.

    

    5.3           Condition on Termination. On
the last day of the Term hereof, or on any sooner termination, Tenant shall
surrender the Premises to Landlord in the same condition as received, ordinary
wear and tear excepted, and
Premises damage to the extent not caused by Tenant 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 Tenant. Landlord may require the removal of any or all alterations,
additions or improvements made by Tenant prior to the termination of the Lease
and restoration of the Premises and the Project to their prior condition (i.e.,
the condition as of the Commencement Date), at Tenant's expense unless such
alteration, addition or improvement was made with the written consent of
Landlord and Landlord’s consent that such alteration, addition or improvement
would not have to be removed at the termination of the Lease.. All alterations,
additions and improvements which Landlord does not require Tenant to remove
shall become Landlord's property and shall be surrendered to Landlord upon
termination of the Lease. In no event shall Tenant remove any materials or
equipment from the Premises without Landlord's prior written consent, including,
but not limited to, any power wiring or power panels, lighting or lighting
fixtures, wall coverings, window coverings, carpets, other affixed floor coverings,
heaters, air conditioners or any other heating or air conditioning equipment,
fencing or security gates or other similar Building operating equipment and
decorations.

    

    6.           UTILITIES
AND SERVICES

    

    6.1           Utilities and Services Furnished by
Landlord. Provided that Tenant is not in default under this Lease,
Landlord agrees to furnish or cause to be furnished to the occupied portion of
the Premises the utilities and services described in Exhibit "C."

    

    6.2           Utilities and Services Furnished by
Tenant. Tenant shall pay for all water, gas, heat, light, power,
telephone and other utilities and services specially or exclusively supplied
and/or metered exclusively to the Premises or to Tenant, together with any taxes
thereon.

    

    6.3           Interruption of Service.
Landlord shall not be liable in damages or otherwise for any failure or
interruption of any utility service being furnished to the Premises, unless through the negligence of
the Landlord or its agents, and no such failure or interruption shall
entitle Tenant to terminate this Lease, or to an abatement of the Monthly Base
Rent, additional rent or other charges due hereunder.

    

    

    

    

    7.           INSURANCE
AND INDEMNITY

    

    7.1           Tenant's Liability Insurance.
Tenant shall carry at its own expense throughout the term of this Lease,
commercial general liability insurance covering the Premises and appurtenant
areas, and Tenant's use thereof, and protecting Tenant and Landlord (as an
additional insured) against claims for bodily injury, personal injury and
property damage based upon, involving or arising out of the ownership, use,
occupancy or maintenance of the Premises and all areas appurtenant thereto. Such
insurance shall be on an occurrence basis providing single limit coverage in an
amount not less than $1,000,000 per occurrence with an "Additional
Insured--Managers or Lessors of Premises" Endorsement and shall contain the
"Amendment of Pollution Exclusion" for damage caused by heat, smoke or fumes
from a hostile fire. The policy shall not contain any intra-insured exclusions
as between insured persons or organizations, but shall include coverage for
liability assumed under this Lease as an "insured contract" for the performance
of Tenant's indemnity obligations under this Lease. Such insurance shall also
cover Tenant's contractual liability under this Lease in an amount periodically
adjusted as hereinafter provided to conform to then current standard business
practices for comparable business operations, but in no case less than the
amounts shown in the applicable Basic Lease Provisions. The liability limit of
such insurance shall not, however, limit Tenant's liabilities assumed under this
Lease. Tenant shall keep in full force and effect a policy or policies of
worker's compensation insurance as required by law, and with employees liability
coverage for bodily injury by accident of not less than $2,000,000 for each
accident, and for bodily injury by disease of not less than $2,000,000 for each
employee and for the policy limit. If required by Landlord, then the amounts of
general liability and employers liability insurance shall be increased from time
to time (but in no event more frequently than once every three (3) years) to an
amount reasonably determined by Landlord as may be required, given the then
current economic conditions and the size of damage awards generally, to
approximate the same level of protection as was provided on the Commencement
Date.

    

    7.2           Tenant's Casualty Insurance.
Tenant shall, at Tenant's expense, obtain and keep in force during the term of
this Lease, replacement cost, fire and extended coverage insurance, with
vandalism and malicious mischief, sprinkler leakage and earthquake 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 Tenant's personal
property, fixtures, equipment and Tenant improvements. Tenant agrees that all
personal property of whatever kind, including, without limitation, inventory
and/or goods stored at or about the Premises, Tenant's trade fixtures and
Tenant's interest in tenant improvements which may be at any time located in, on
or about the Premises or the Building, whether owned by Tenant or third parties,
shall be at Tenant's sole risk or at the risk of those claiming through Tenant,
and that Landlord shall not be liable for any damage to or loss of such property
except for loss or damage arising from or caused by the sole gross negligence of
Landlord or any of Landlord's officers, employees, agents or authorized
representatives acting within the scope of their authority.

    

    7.3           Form of Insurance Policies.
Insurance required hereunder shall be in companies duly licensed to transact
business in the state where the Premises are located, and maintaining during the
Policy term a "General Policyholders Rating" of at least B+, V, or such other
rating as may be required by any lender having a lien on the Premises, as set
forth in the most current issue of "Bests Insurance Guide." Tenant shall not do
or permit to be done anything which shall invalidate any insurance policy
referred to in this Paragraph 7. Tenant shall provide Landlord with copies of
insurance policies or certificates of insurance prior to the Commencement Date
of the Lease and shall provide to Landlord copies of replacement policies at
least ninety (90) days prior to the date of expiration of a policy. A binder or
certificate of insurance shall be sufficient evidence of insurance pending
issuance of a policy; provided, however, that Tenant shall forward a copy of
each policy to Landlord when issued. Such insurance policies shall be on forms
reasonably acceptable to Landlord and shall be on an occurrence basis. Such
insurance shall name Landlord, any management agent from time to time designated
by Landlord, any lender of Landlord as additional insureds, and shall provide
that coverage of additional insureds shall be primary and that any insurance
maintained by Landlord shall be excess only. Such insurance shall provide that
the interests of Landlord, Tenant and other insureds shall be severable such
that the act or omission of one insured shall not avoid or reduce the coverage
of other insureds. Such insurance shall contain endorsements (a) stating that
the insurer agrees to notify Landlord in writing not less than thirty (30) days
in advance of modification or cancellation thereof, (b) deleting any employee
exclusion on personal injury coverage, (c) deleting any exclusion from liability
caused by serving alcoholic beverages incidental to Tenant's business, and (d)
providing for coverage for employees non-owned automobile liability. Failure of
Tenant to maintain insurance coverages required by this Lease for any time
period during the Term or failure of Tenant to deliver evidence of insurance or
copies of policies shall be material defaults under this Lease.

    

    7.4           Landlord Insurance. Landlord
shall carry such insurance with respect to the Building, of the type and amounts
as Landlord, in its sole discretion, shall deem reasonably appropriate. The cost
of any such insurance shall be includable as Operating Expenses pursuant to
Section 3.3 above. If Tenant fails to maintain, or to provide Landlord with,
evidence of the required insurance coverages, Landlord shall have the right, but
not the obligation, to obtain such insurance coverages on Tenant's behalf. The
cost of such insurance coverages shall be deemed additional rent payable by
Tenant to Landlord upon demand.

    

    7.5           Waiver of Liability of
Landlord. Except in the event of Landlord's negligence or willful
misconduct, Tenant hereby agrees that Landlord shall not be liable for (a)
injury to Tenant's business or any loss of income therefrom, (b) loss of or
damage to the goods, wares, merchandise or other property of Tenant, Tenant's
employees, invitees, customers, or any other person in or about the Premises or
the Project with the exception
of the Common Areas, or (c) injury to the person of Tenant, Tenant's
employees, agents, contractors, invitees, customers, or any other person in or
about the Premises or the Project with the exception of the Common
Areas, whether such damage is from rain, or from the breakage, injury is
caused by or results from theft, fire, steam, electricity, gas, water or
leakage, obstruction or other defects of pipes. sprinklers, wires, appliances.
plumbing, air conditioning or lighting fixtures, from indoor air pollution,
electromagnetic radiation or other conditions associated with the so-called
"sick building syndrome," or from any other cause, whether damage or injury
results from conditions arising upon the Premises or upon other portions of the
Project, or from other sources or places appurtenant to the Premises and
regardless of whether the cause of such damage or injury or the means of
repairing the same is inaccessible to Tenant. Landlord shall not be liable for
any damages arising from any act or neglect of any other tenant, occupant, or
user of the Project, nor from the failure of Landlord to enforce the provisions
of any other lease of any other tenant in the Project.

    

    7.6           Landlord’s Liability. Anything
contained in this Lease to the contrary notwithstanding, Tenant agrees that
Tenant shall look solely to the estate and property of Landlord in the Project
for the collection of any judgment or other judicial process requiring the
payment of money by Landlord for any default or breach by Landlord under this
Lease, subject, however, to the prior rights of any mortgagee or lessor of the
Project. No other assets of Landlord or any members, partners, shareholders, or
other principals of Landlord shall be subject to levy, execution or other
judicial process for the satisfaction of Tenant’s claim.

    

    7.7           Indemnity by Tenant of
Landlord. Tenant shall indemnify and hold harmless Landlord and its
agents, Landlord's master or ground landlord, members, partners and lenders,
from and against any and all claims for damage to the person or property of
anyone or any entity arising from Tenant's use of the Project, or from the
conduct of Tenant's business or from any activity, work or things done,
permitted or suffered by Tenant in or about the Premises or elsewhere, and shall
further indemnify and hold harmless Landlord from and against any and all
claims, costs and expenses arising from any breach or default in the performance
of any obligation on Tenant's part to be performed under the terms of this
Lease, or arising from any act or omission of Tenant, or any of Tenant's agents,
contractors, employees or invitees and from and against all costs, attorney's
fees, expenses and liabilities incurred by Landlord 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 Landlord by reason of any such matter, Tenant upon notice from Landlord
shall defend the same at Tenant's expense by counsel reasonably satisfactory to
Landlord and Landlord shall cooperate with Tenant in such defense. Landlord need
not have first paid any such claim in order to be so indemnified. Tenant, as a
material part of the consideration to Landlord, hereby assumes all risk of
damage to property of Tenant or injury to persons, in, upon or about the Project
arising from any cause and Tenant hereby waives all claims in respect thereof
against Landlord.

    

    7.8           Indemnity
by Landlord of Tenant. Landlord shall indemnify and hold harmless Tenant and its
agents, members,partners and lenders, from and against any and all claims for
damage to theperson or property of anyone or any entity arising from Landlord's
use of the Project, or from the conduct of Landlord's business or from any
activity, work or things done, permitted or suffered by Landlord in or about the
Premises or elsewhere, and shall further indemnify and hold harmless Tenant from
and against any and all claims, costs and expenses arising from any breach or
default in the performance of any obligation on Landlord's part to be performed
under the terms of this Lease, or arising from any act or omission of Landlord,
or any of Landlord's agents, contractors, employees or invitees and from and
against all costs, attorney's fees, expenses and liabilities incurred by Tenant
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 Tenant by reason of any such matter, Landlord upon notice from Tenant
shall defend the same at Landlord's expense by counsel reasonably satisfactory
to Landlord and Tenant shall cooperate with Landlord in such defense. Tenant
need not have first paid any such claim in order to be so
indemnified.

    

    7.9           Waiver of Subrogation. Tenant
and Landlord 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 Landlord or Tenant or their
agents, employees, contractors and/or invitees. If necessary all property
insurance policies required under this Lease shall be endorsed to so
provide.

    

    8.           DAMAGE
OR DESTRUCTION

    

    8.1           Definitions

    

    8.1.1           "Premises
Damage" shall mean that the Premises are damaged or destroyed to any
extent.

    

    8.1.2           "Building
Partial Damage" shall mean that 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.

    

    8.1.3           "Building
Total Destruction" shall mean that 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.

    

    8.1.4           "Project
Total Destruction" shall mean that the Project (as defined in paragraph 1.1) is
damaged or destroyed to the extent that the cost of repair is fifty percent
(50%) or more of the then Replacement Cost of the Project.

    

    8.1.5           "Insured
Loss" shall mean damage or destruction caused by an event required to be covered
by the insurance described in Section 7. The fact that an Insured Loss has a
deductible amount shall not make the loss an uninsured loss.

    

    8.1.6           "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
occurrence of the damage, excluding all improvements made by tenants, other than
those installed by Landlord at Tenant's expense.

    

    8.2           Premises
Damage; Premises Building Partial Damage

    

    8.2.1           Insured Loss. Subject to the
provisions of paragraphs 8.4 and 8,5, 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 Building Partial Damage, then
Landlord shall, as soon as reasonably possible and to the extent the required
materials and labor are readily available through usual commercial channels, at
Landlord's expense, repair such damage (but not Tenant's fixtures, equipment or
tenant improvements originally paid for by Tenant) to its condition existing at
the time of the damage, and this Lease shall continue in full force and
effect.  Tenant
shall have the right to terminate the Lease if repairs can’t be completed within
180-270 days.

    

    8.2.2           Uninsured Loss. Subject to the
provisions of paragraphs 8.4 and 8.5, 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 Building Partial Damage, unless caused by a
negligent or willful act of Tenant (in which event Tenant shall make the repairs
at Tenant's expenses), which damage prevents Tenant from making any substantial
use of the Premises, Landlord may at Landlord's option either (i) repair such
damage as soon as reasonably possible at Landlord's expense, in which event this
Lease shall continue in full force and effect, or (ii) give written notice to
Tenant within thirty (30) days after the date of the occurrence of such damage
of Landlord's intention to cancel and 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.  Tenant shall have the right to
terminate the Lease if repairs can’t be completed within 180-270 days,
unless caused by
a negligent or willful act of Tenant, in which Tenant shall make repairs at
Tenant’s expense...

    

    8.3           Building Total Destruction; Project
Total Destruction. Subject to the provisions of paragraphs 8.4 and 8.5,
if at any time during the term of this Lease there is damage, whether or not it
is an Insured Loss, which falls in the classifications of either (i) Building
Total Destruction, or (ii) Project Total Destruction, then Landlord may at
Landlord's option either (i) repair such damage or destruction as soon as
reasonably possible at Landlord's expense (to the extent the required materials
are readily available through usual commercial channels) to its condition
existing at the time of the damage, but not Tenant's fixtures, equipment or
tenant improvements, and this Lease shall continue in full force and effect, or
(ii) give written notice to Tenant within thirty (30) days after the date of
occurrence of such damage of Landlord's intention to cancel and terminate this
Lease, in which case this Lease shall terminate as of the date of the occurrence
of such damage.

    

    8.4           Damage Near End of
Term.

    

    8.4.1           Subject
to paragraph 8.4.2, if at any time during the last twelve (12) months of the
term of this Lease there is substantial damage to the Premises, Landlord may at
Landlord's option cancel and terminate this Lease as of the date of occurrence
of such damage by giving written notice to Tenant of Landlord's election to do
so within thirty (30) days after the date of occurrence of such
damage.

    

    8.4.2           Notwithstanding
paragraph 8.4.1, in the event that Tenant has an option to extend or renew this
Lease, and the time within which said option may be exercised has not yet
expired, Tenant shall exercise such option, if it is to be exercised at all, no
later than thirty (30)
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 Tenant duly exercises such option during said thirty (30) day period,
Landlord shall, at Landlord's expense, repair such damage, but not Tenant's
fixtures. equipment or tenant improvements, as soon as reasonably possible and
this Lease shall continue in full force and effect. If Tenant fails to exercise
such option during said thirty
(30) day period, then Landlord may at Landlord’s option terminate
and cancel this Lease as of the expiration of said thirty (30) day period by
giving written notice to Tenant of Landlord's election to do so within ten (10)
days after the expiration of said thirty (30) day period,
notwithstanding any term or provision in the grant of option to the
contrary.

    

    8.5           Abatement
of Rent; Tenant's Remedies

    

    8.5.1           In
the event Landlord repairs or restores the Building or Premises pursuant to the
provisions of Section 8, and any part of the Premises are not useable (including
loss of use due to loss of access or essential services), the rent payable
hereunder (including Tenant's Share of Operating Expenses) for the period during
which such damage, repair or restoration continues shall be abated, provided (1)
the damage was not the result of the negligence of Tenant, and (2) such
abatement shall only be to the extent the operation and profitability of
Tenant's business as operated from the Premises is adversely affected. Except
for said abatement of rent, if any, Tenant shall have no claim against Landlord
for any damage suffered by reason of any such damage, destruction, repair or
restoration.

    

    8.5.2           If
Landlord shall be obligated to repair or restore the Premises under the
provisions of this Section 8 and shall not commence, in a substantial and
meaningful way, the repair or restoration of the Premises within ninety (90)
days after such obligation shall accrue, Tenant may, at any time prior to the
commencement of such repair or restoration, give written notice to Landlord and
to any lenders of which Tenant has actual notice of Tenant's election to
terminate this Lease on a date not less than sixty (60) days following the
giving of such notice. If Tenant gives such notice to Landlord and such lenders
and such repair or restoration is not commenced within thirty (30) days after
receipt of such notice, this Lease shall terminate as of the date specified in
said notice. If Landlord or a lender commences the repair or restoration of the
Premises within thirty (30) days after receipt of such notice, this Lease shall
continue in full force and effect. "Commence" as used in this Paragraph shall
mean either the unconditional authorization of the preparation of the required
plans, or the beginning of the actual work on the Premises, whichever first
occurs.

    

    8.5.3           Tenant
agrees to cooperate with Landlord in connection with any such restoration and
repair, including but not limited to the approval and/or execution of plans and
specifications required.

    

    8.6           Termination-Advance Payments.
Upon termination of this Lease pursuant to Section 8, an equitable adjustment
shall be made concerning advance rent and any advance payments made by Tenant to
Landlord. In addition,
Landlord shall, within thirty (30) days of lease termination, return to
Tenant so much of Tenant's security deposit as has not theretofore been applied
by Landlord.

    

    

    8.8           Insurance Limitation.
Notwithstanding anything else to the contrary contained in this Section 8,
Landlord shall have no obligation to pay for the repair or restoration of damage
or destruction to the Premises caused by fire or other casualty more than the
amount of the insurance proceeds payable for the benefit of Landlord by reason
of such damage or destruction, plus any amounts actually paid by Tenant as
required in this Section 8 for the excess of the cost of reconstructing tenant
improvements over the original cost of such repairs, then the original cost of
such tenant improvements paid initially by Landlord. If the sum of such
insurance proceeds, plus the amount so paid by Tenant, is not sufficient to
cover the cost of such repairs, Landlord may elect to so repair or restore and
the Lease shall continue in full force and effect, or Landlord may elect not to
repair or restore and the Lease shall then terminate.

    9.           TAXES

    

    Tenant shall pay all taxes and license
fees levied, assessed or imposed by reason of Tenant's use of the Premises, and
all taxes on Tenant's trade fixtures, furnishings, equipment and all other
personal property located on the Premises. If any of Tenant's personal property
shall be assessed with Landlord's real property, Tenant shall pay to Landlord
the taxes attributable to Tenant within ten (10) days after receipt of a written
statement setting forth the taxes applicable to Tenant's property. Landlord
shall pay all property taxes or assessments applicable to the Project, subject
to reimbursement by 'Tenant of Tenant's share of such taxes in accordance with
the provisions of Section 3.3.

    

    10.           ASSIGNMENT
AND SUBLETTING

    

    10.1           Prohibition of Assignment or
Sublet. Except as otherwise provided herein, Tenant shall not assign,
transfer, mortgage or otherwise encumber, voluntarily or by operation of law,
this Lease or any interest hereof, or sublet the Premises or any portion
thereof, or permit any other person to occupy the Premises or any portion
thereof without the express written consent of Landlord, which consent shall not
be unreasonably withheld or
delayed and shall, in any event, be subject to the provisions of Section
10.2 below. Tenant shall have
the right at any time to assign or sublease or otherwise permit occupancy
(collectively “transfer”) of all or any portion of the Premises to any entity
which is controlled by or which controls or is under common control of
Tenant.  Tenant also may transfer the Lease to any successor entity,
whether by merger, consolidation or otherwise, and to any entity that purchases
all or substantially all of the Tenant’s assets.  No such sublease,
assignment or other transaction shall require Landlord’s approval or consent and
Tenant shall have the right to keep all of the profit, if any,
wherefrom.  Tenant’s subtenants and assignees shall also have the
right to assign and sublet subject to the same consent
requirements.  Landlord shall also grant, and cause each of its
lenders to grant, to any assignee and each subtenant of Tenant, the equivalent
of a recognition and non-disturbance agreement.  Consent to one
assignment or subletting shall not constitute a waiver of this provision or
consent to any further assignment or subletting. Tenant shall reimburse Landlord
for any reasonable costs and expenses, including but not limited to legal
expenses, incurred by Landlord in connection with its review of any proposed
assignment or subletting, whether or not Landlord gives its consent. No assignee
for the benefit of creditors, trustee in bankruptcy or purchaser at any
execution sale, shall have the right to possess or occupy the Premises or any
part thereof, or claim and right hereunder or assignment.

    

    10.2           Procedure for Consent. In the
event Tenant wishes to sublet or assign the Premises, or any portion thereof,
the following procedure shall apply:

    

    10.2.1                            Tenant
shall submit in writing to Landlord the name of the proposed subtenant or
assignee, the nature of the business to be carried on the Premises, a copy of
the proposed sublease or assignment, including all terms and conditions thereof,
and such reasonable financial information regarding such subtenant or assignee
as Landlord shall request.

    

    10.2.2                            At
any time within  ten (10
business days of Landlord's receipt of the information specified in
Section 10.2, Landlord may, by written notice to Tenant, elect either to (a)
consent to the subletting or assignment of the Premises upon the same terms and
conditions as those offered to the proposed subtenant or assignee; (b) terminate
this Lease with respect to the portion of the Premises proposed to be subleased
or assigned, with a proportionate abatement of rent payable hereunder; (c)
consent to such subletting or assignment, in which event such consent shall be
conditioned upon the agreement by Tenant to pay over to Landlord the amount by
which any rent or other consideration received by Tenant from subtenant or
assignee exceeds the amount of rent payable by Tenant to Landlord pursuant to
this Lease; or (d) withhold Landlord's consent with written explanation, which in
such case shall not be unreasonably withheld or delayed.

    

    10.3           Continuing Obligation of
Tenant. No transfer, even with the consent of Landlord, shall release
Tenant of its obligation to pay the rent and to perform all other obligations of
Tenant hereunder. Neither a delay in the approval or disapproval of an
assignment or subletting, nor the acceptance by Landlord of any payment due
hereunder from any source other than Tenant shall be deemed a waiver by Landlord
of any provision of this Lease or to be a consent to any assignment or
subletting. If Tenant's obligations under this Lease have been guaranteed by
third parties, then an assignment or sublease, and Landlord's consent thereto,
shall not be effective unless said guarantors give their written consent to such
sublease and the terms thereof. In the event of any default under this Lease,
Landlord may proceed directly against Tenant, any guarantors or anyone else
responsible for the performance of this Lease, including the subtenant, without
first exhausting Landlord's remedies against any other person or entity
responsible therefor to Landlord, or any security held by Landlord or Tenant.
Landlord may consent to subsequent assignments or modifications of this Lease by
Tenant's transferee, without notifying Tenant or obtaining its consent. Such
action shall not relieve Tenant’s liability under this lease.

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

    

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

    

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

    

    10.4.1                            Tenant
hereby assigns and transfers to Landlord all of Tenant's interest in all rentals
and income arising from any sublease of all or any portion of the Premises
heretofore or hereafter made by Tenant, and Landlord may collect such rent and
income and apply the same toward Tenant's obligations under this Lease;
provided, however, that until a Default (as defined in Section 11) shall occur
in the performance of Tenant's obligations under this Lease, Tenant may collect
and enjoy rents accruing under such sublease. Landlord shall not, by reason of
this or any other assignment of such sublease to Landlord, nor by reason of the
collection of the rents from a sublease, be deemed liable to the subtenant for
any failure of Tenant to perform and comply with any of Tenant's obligations to
such subtenant under such sublease. Tenant hereby irrevocably authorizes and
directs any such subtenant, upon receipt of a written notice from Landlord
stating that a default exists in the performance of Tenant's obligations under
this Lease, to pay to Landlord the rents and other charges due and to become due
under the sublease. Subtenant shall rely upon any such statement and request
from Landlord and shall pay such rents and other charges to Landlord without any
obligation or right to inquire as to whether such default exists and
notwithstanding any notice from or claim from Tenant to the contrary. Tenant
shall have no right or claim against said subtenant, or until the Default has
been cured, against Landlord, for any such rents and other charges so paid by
said subtenant to Landlord.

    

    10.4.2                            In
the event of a default by Tenant in the performance of its obligations under
this Lease, Landlord at its option and without any obligation to do so may
require any subtenant to attorn to Landlord in which event Landlord shall
undertake the obligations of the sublandlord under such sublease from the time
of the exercise of said option to the expiration of such sublease; provided,
however, Landlord shall not be liable for any prepaid rents or security deposit
previously paid by the subtenant to such sublandlord (unless such prepaid rents
or security deposit have been delivered to Landlord) or for any other prior
defaults of such sublandlord under such sublease.

    

    10.4.3                            Any
matter or thing requiring the consent of the sublandlord under a sublease shall
also require the consent of Landlord herein.

    

    10.4.4                            No
subtenant shall further assign or sublet all or any part, of the premises
without Landlord's prior written consent.

    

    10.5           Excess Rent. Notwithstanding
any other provision of Section 10 to the contrary, if the consideration Tenant
receives for any assignment, sublease or transfer exceeds the rent payable under
this Lease for the same period and portion of the Premises, 50%
of the
excess shall be immediately due and payable by Tenant to Landlord as additional
rent under this Lease,
after deduction
of Tenant’s reasonable sublease costs.  Landlord shall not have
recapture rights.

    

    10.6           No Merger. No merger shall
result from Tenant's sublease of the Premises under this Section 10, Tenant's
surrender of this Lease or the termination of this Lease in any other manner. In
any such event, Landlord may terminate any or all subtenancies or succeed to the
interest of Tenant as sublandlord thereunder.

    

    11.           DEFAULT

    

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

    

    11.1.1                            The
vacation or abandonment of the Premises by Tenant. Vacation of the Premises
shall include the failure to occupy the Premises for a continuous period of
thirty (30) days without
paying rent.

    

    11.1.2                            The
failure by Tenant to make any payment of rent or any other payment required to
be made by Tenant hereunder, as and when due, where such failure shall continue
for a period of three (3) days after written notice thereof from Landlord to
Tenant. In the event that Landlord serves Tenant 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
subsection.

    

    11.1.3                            The
failure by Tenant to observe or perform any of the express or implied covenants,
conditions or provisions of this Lease to be observed or performed by Tenant
other than that referenced in subsection 11.1.2 above, where such failure shall
continue for a period of thirty (30) days after written notice thereof from
Landlord to Tenant; provided, however, that if the nature of Tenant's
noncompliance is such that more than thirty (30) days are reasonably required
for its cure, then Tenant shall not be deemed to be in default if Tenant
commenced such cure within said 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 Tenant under applicable unlawful detainer statutes.

    

    11.1.4                            The
making by Tenant of a general assignment for the benefit of creditors; (a)
Tenant's becoming a "debtor" as defined in 11 USC Section 101 or any successor
statute thereto (unless, in the case of a petition filed against Tenant, the
same is dismissed within sixty (60) days); (b) the appointment of a trustee or
receiver to take possession of substantially all of Tenant's assets located at
the Premises or of Tenant's interest in this Lease, where possession is not
restored within thirty (30) days; or (c) the attachment, execution or other
judicial seizure of substantially all of Tenant's assets located at the Premises
or of Tenant's interest in this Lease, where such seizure is not discharged
within thirty (30) days. In the event that any provision of this subsection
11.1.4 is contrary to any applicable law, such provision shall be of no force or
effect.

    

    11.1.5                            The
discovery by Landlord that any financial statement given to Landlord
by

    Tenant,
or its successor in interest or by any guarantor of Tenant's obligation
hereunder was materially false or misleading.

    

    11.1.6                            If
the performance of Tenant's obligations under this Lease is guaranteed: (a) the
termination of a guarantors liability with respect to this Lease other than in
accordance with the terms of such guaranty, (b) a guarantor's becoming insolvent
or the subject of a bankruptcy filing, (c) a guarantors refusal or inability to
honor the guarantee, or (d) a guarantor's breach of its guarantee obligation,
and Tenant's failure within sixty (60) days following written notice by or on
behalf of Landlord to Tenant of any such event, to provide Landlord with written
alternative assurance or security, which, when coupled with the then existing
resources of Tenant, equals or exceeds the combined financial resources of
Tenant and the guarantors that existed at the time of execution of this
Lease.

    

    11.2           Landlord's Remedies. In the
event of any material Default of this Lease by Tenant, Landlord may, at any time
thereafter, with or without notice or demand and without limiting Landlord in
the exercise of any right or remedy which Landlord may have by reason of such
default:

    

    11.2.1                            Terminate
Tenant's right to possession of the Premises by any lawful means, in which case
this Lease and the term hereof shall terminate and Tenant shall immediately
surrender possession of the Premises to Landlord. In such event Landlord shall
be entitled to recover from Tenant all damages incurred by Landlord by reason of
Tenant's default, including, but not limited to, 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 Tenant proves could be reasonably avoided;
that portion of the leasing commission paid by Landlord pursuant to Section 27
applicable to the unexpired term of this Lease.

    

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

    

    11.2.3                            Pursue
any other remedy now or hereafter available to Landlord under the laws or
judicial decisions of the state wherein the Premises are located. Unpaid
installments of rent and other unpaid monetary obligations of Tenant under the
terms of this Lease shall bear interest from the date due at the maximum rate
then allowable by law.

    

    11.2.4                            The
expiration or termination of this Lease and/or the termination of Tenant's right
to possession shall not relieve Tenant from liability under any indemnity
provisions of this Lease as to matters occurring or accruing during the Term
hereof or by reason of Tenant's occupancy of the Premises.

    

    

    

    11.4           Right of Landlord to Re-Enter.
In the event of any rightful termination of this
Lease that has been fully and
finally adjudicated by a tribunal of competent jurisdiction, Landlord
shall have the immediate right to enter upon and repossess the
Premises.

    

    11.5           Default by Landlord. Landlord
shall not be in default unless Landlord fails to perform obligations required of
Landlord within  thirty (30) days after written notice by Tenant to
Landlord, or to the
holder of any first mortgage or deed of trust covering the Premises whose name
and address shall have theretofore been furnished to Tenant in writing,
specifying wherein Landlord has failed to perform such obligation; provided,
however, that if the nature of Landlord's obligation is such that more than
thirty (30) days are required for performance then Landlord shall not be in
default if Landlord commences performance within such 30-day period and
thereafter diligently pursues the same to completion.

    

    12.           ENVIRONMENTAL
MATTERS

    

    12.1           Definitions.
For purposes of this Section 12:

    

    12.1.1                            "Hazardous
Materials" means any product, chemical, material or waste whose presence,
nature, quantity and/or intensity of existence, use, manufacture, disposal,
transportation, spill, release or effect, either by itself or in combination
with other materials expected to be on the Premises, is either: (a) potentially
injurious to the public health, safety or welfare, the environment or the
Premises, (b) regulated or monitored by any governmental authority, or (c) a
basis for liability of Landlord to any governmental agency or third party under
any applicable statute or common law theory. Hazardous Materials include, but
are not limited to, substances defined as "hazardous wastes," "hazardous
substances," "toxic substances," "pollutants," "contaminants," "chemicals known
to the State to cause cancer or reproductive toxicity," "radioactive materials,"
or other similar designations in, or otherwise subject to regulation under, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended by the Superfund Amendments and Reauthorization Act of 1986 ("CERCLA"),
42 USC section 9601 et seq.; the Hazardous Substances Account Act ("HSAA"),
California Health and Safety Code Section 25300 et seq.; the Toxic Substance
Control Act (TSCA"), 15 USC 2601 et seq.; the Hazardous Materials Transportation
Act, 49 USC Section 1802; the Resource Conservation and Recovery Act ("RCRN"),
42 USC Section 9601 et seq.; the Hazardous Waste Control Law ("HWCL"),
California Health and Safety Code Section 25100 et seq.; the Safe Drinking Water
and Toxic Enforcement Act of 1986, California Health and Safety Code Section
25249.5 et seq.; the Porter-Cologne Water Quality Control Act
("Porter-Cologne"), California Water Code Section 13000 et seq.; the Clean Water
Act ("CWN"), 33 USC Section 1251 et seq.; the Safe Drinking Water Act, 42 USC
Section 300f et seq.; the Clean Air Act ("CAA"), 42 USC Section 7401 et seq.;
the California Air Pollution Control Law, California Health and Safety Code
Section 39000 et seq.; and in the plans, rules, regulations or ordinances
adopted, or other criteria and guidelines promulgated pursuant to the preceding
laws or other similar laws, regulations, rule or ordinance now or hereafter in
effect (collectively the "Environmental Laws"); and any other substances,
constituents or wastes subject to environmental regulations under any applicable
federal, state or local law, regulation or ordinance now or hereafter in
effect.

    

    12.1.2                            "Environmental
Conditions" means conditions of the environment, including the ocean, natural
resources (including flora and fauna), soil, surface water, ground water, any
present or potential drinking water supply, subsurface strata or the ambient
air, relating to or arising out of the use, handling, storage, treatment,
recycling, generation, transportation, release, spilling, leaking, pumping,
pouring, emptying, discharging, injecting, escaping, leaching, disposal, dumping
or threatened release of Hazardous Materials by Tenant or Tenant's successors in
interest, agents, representatives, employees or independent contractors. With
respect to claims by employees, Environmental Conditions also includes the
exposure of persons to Hazardous Materials within a workplace.

    

    12.1.3                            "Environmental
Noncompliance" includes, without limitation (1) the release or threatened
release of any Hazardous Materials into the environment, any storm drain, sewer,
septic system or publicly owned treatment works, in violation of any effluent or
emission limitations, standards or other criteria or guidelines established by
any federal, state or local law, regulation, rule, ordinance, plan or order (2)
any noncompliance of physical structure, equipment, process or facility with the
requirements of building or fire codes, zoning or land use regulations or
ordinances, conditional use permits and the like; (3) any noncompliance with
federal, state or local requirements governing occupational safety and health;
(4) any facility operations, procedures, designs, etc. which do not conform to
the statutory or regulatory requirements of the CAA, the CWA, the TSCA, the
RCRA, the HSAA, the HWCL, Porter-Cologne or any other Environmental Laws
intended to protect public health, welfare and the environment; (5) the failure
to have obtained permits, variances or other authorizations necessary for the
legal operation of any equipment, process, facility or any other activity; (6)
the operation of any facility or equipment in violation of any permit condition,
schedule of compliance, administrative or court order and the like.

    

    12.1.4                            "Claims"
shall include, without limitation; claims, demands, suits, causes of action for
personal injury or property damage (including any depreciation of property
values, lost use of property, consequential damages arising directly or
indirectly out of Environmental Conditions); actual or threatened damages to
natural resources; claims for the recovery of response costs, or administrative
or judicial orders directing the performance of investigations, response or
remedial actions under CERCLA, RCRA, HSAA, RCRA or other Environmental Laws; a
requirement to implement "corrective action" pursuant to any order or permit
issued pursuant to RCRA; claims for restitution, contribution or equitable
indemnity from third parties or any governmental agency; fines, penalties, liens
against property; claims for injunctive relief or other orders or notices of
violation from federal, state or local agencies or courts; and, with regard to
any present or former employees, exposure to or injury from Environmental
Conditions.

    

    12.1.5                            "Expenses"
shall include any liability, loss, cost or expense, including, without
limitation, costs of investigation, cleanup, remedial or response action, the
costs associated with posting financial assurances for the completion of
response, remedial or corrective actions, the preparation of any closure or
other necessary or required plans or analyses, or other reports or analyses
submitted to or prepared by regulating agencies, including the cost of health
assessments, epidemiological studies and the like, retention of engineers and
other expert consultants, legal counsel, capital improvements, operation and
maintenance testing and monitoring costs, power and utility costs and pumping
taxes or fees, and administrative costs incurred by governmental
agencies.

    

    12.2           Legal Requirements. Legal
requirements shall mean all present and future laws (including but not limited
to environmental laws) and all covenants, restrictions and conditions now or
hereafter of record which may be applicable to Tenant or to the Premises or to
the use, manner of use, occupancy, possession, operation, maintenance,
alteration, repair, or restoration of the Premises, even if compliance therewith
necessitates structural changes within the Premises or results in interference
with the use or enjoyment of the leased Premises. Tenant shall at its expense
comply with and conform to all legal requirements including all applicable
environmental laws.

    

    12.3           Environmental Indemnification By
Tenant. Tenant agrees to indemnify, defend by counsel acceptable to
Landlord, and hold harmless Landlord, its subsidiaries, affiliates, successors
and assigns and their respective directors, officers, employees, shareholders,
representatives and agents, from and against and in respect of any and all
Claims, damages (including, without limitation, diminution in value), losses,
liabilities and expenses, lawsuits, deficiencies, interest, penalties,
attorneys' fees and all amounts paid in defense or settlement of the foregoing
whether or not arising out of third-party claims, which may be imposed upon or
incurred by Landlord or asserted against Landlord by any other party or parties
(including Governmental Entities), in connection with any Environmental
Conditions or the remediation of any Environmental Conditions (whether now known
or hereafter discovered), or any Environmental Noncompliance arising out of,
resulting from, or attributable to, the assets, business, or operations of
Tenant at the Premises exluding all areas outside Tenant’s
control, including but not limited to the Common Areas, including without
limitation any claims, expenses, losses, liabilities, etc. resulting from the
alleged exposure of any person to Environmental Conditions, provided that such
Environmental Conditions or exposure resulted from activities of Tenant or
Tenant's agents, representatives, employees or independent contractors. Tenant's
obligations pursuant to this Section shall not exist  if Landlord
is  held to be strictly and/or jointly and severally
liable.

    

    12.4           Tenant's
Remedial Action Responsibility

    

    12.4.1                            If
Tenant knows that a Hazardous Material or Environmental Condition (other than
previously consented to by Landlord) has come to be located in, on, under or
about the Premises, Tenant shall immediately notify Landlord in writing of the
condition.

    

    12.4.2                            In
the event that Environmental Noncompliance and/or Environmental Conditions
resulting from the activities of Tenant or Tenant's agents, representatives,
employees or independent contractors is discovered or alleged to exist at the
Premises subsequent to the date hereof, Tenant will pay all reasonable costs
incurred by Landlord in defending and correcting the conditions which constitute
Environmental Noncompliance and/or Environmental Conditions.

    

    12.4.3                            Tenant
shall be exclusively responsible for the integrity of all facilities at the
Premises under Tenant’s
control which handle, treat, store, recycle or dispose of Hazardous
Materials. Any incident following the date hereof which results in an actual or
threatened release of Hazardous Materials into the environment, or which results
or may result in any Environmental Conditions or Environmental Noncompliance, or
which contributes or may contribute to known or unknown Environmental Conditions
or Environmental Noncompliance, shall be included in Tenant's indemnification
obligations to Landlord under this Article.

    

    12.5           Inspection Rights. Landlord
shall have the right to enter and inspect the Premises and the business
operations of Tenant, upon reasonable notice and in a manner so as not to
interfere unreasonably with the conduct of Tenant's business, to investigate the
possibility of an) Environmental Condition or Environmental Noncompliance at the
Premises. Landlord may exercise this right at its sole discretion. During such
inspection, Landlord shall have the right to take such samples and conduct such
tests as it may determine in its sole discretion to be necessary or advisable.
The incurrence by Landlord of any expense under the provisions of this Section
12.4 shall not impair any claim for indemnification Landlord may have under the
provisions of this Section 12.

    

    12.6           Survival of Article. The
provisions of this Section 12 shall survive, and remain in full force and effect
after, the termination or expiration of this Lease.

    

    13.           LANDLORD'S
RIGHT TO ENTRY

    

    13.1           Right to Entry. Landlord and
Landlord's agents have the right to enter the Premises upon providing
Tenant with reasonable notice (except in the case of an emergency) to
inspect the same, to supply janitorial service and any other service to be
provided by Landlord to Tenant hereunder, to show the Premises to prospective
purchasers or tenants, to post notices of nonresponsibility, to alter, improve
or repair the Premises or any other portion of the Building, all without such
entry constituting any actual or constructive eviction of Tenant and without
abatement of rent. Landlord may, in order to carry out such purposes, erect
scaffolding and other necessary structures where reasonably required by the
character of the work to be performed, provided that Landlord shall use
reasonable efforts to minimize interference with the business of Tenant.
Landlord may at any time, place on or about the Premises or the Building any
ordinary "For Sale" signs, and Landlord may at any time during the last 120 days
of the term hereof place on or about the Premises any ordinary "For Lease" signs
unless Tenant has exercised
its renewal option.

    13.2           Relocation
of Premises.
If Landlord requires the Premises for use in conjunction with another suite or
for other reasons connected with the Landlord's building planning program, upon
notifying Tenant in writing, Landlord shall have the right to move Tenant,
within three (3) months after receipt of such notice, to other space in the
Building, which is or shall be built out by Landlord in a manner comparable to
the Premises, and the terms and conditions of the original Lease shall remain in
full force and effect, save and excepting that a revised Exhibit "A" shall
become part of this Lease and shall reflect the location of the new space.
Landlord shall pay the reasonable costs of moving Tenant's furniture, equipment
and personal property to the new space and shall reimburse Tenant for reasonable
incidental costs of moving such as reprinting stationery with Tenant's new
location.

    

    14.           CONSTRUCTION
OF PREMISES

    

    As promptly as may be reasonably
possible, subject to delays arising from causes beyond Landlord's reasonable
control, Landlord shall commence and complete such work ("Landlord's Work"), if
any, as shall be necessary to complete the construction of the Premises in
conformity with the description of Landlord's Work set forth in Exhibit "D"
attached hereto. Landlord's Work in the Premises shall be in conformity with
Exhibit "D," and Landlord's Work shall be deemed approved by Tenant in all
respects when Tenant occupies the Premises, except as to items which are not
completed or do not conform to Exhibit "D" and as to which Tenant shall give
Landlord written notice of Tenants reasonable disapproval within fifteen (15) days after
Tenant occupies the Premises. It is acknowledged and agreed that there shall be
no Landlord's Work with respect to the Premises except as set forth in Exhibit
"D."

    

    

    

    15.           SIGNS

    

    Subject to paragraph 15 of the Basic
Lease Provisions, no sign, advertisement, poster or notice shall be exhibited,
painted or affixed by Tenant on any part of the Premises, Building or Project
without the prior written consent of Landlord. In the event of violation of the
foregoing by Tenant, Landlord may remove same without any liability, and may
charge the expense incurred in such removal to Tenant. Building standard signs
at the entry to the Premises and on the building directory shall be installed by
Landlord at Landlord’s
expense.

    

    16.           SECURITY

    

    Tenant acknowledges that it has been
advised by Landlord to satisfy itself with respect to the condition of the
Premises from a security standpoint. Tenant has made such an investigation as it
deems necessary with reference to security matters. Tenant expressly assumes all
responsibility for the protection of the Premises, Tenant, its employees,
agents, invitees, contractors and their property from the acts of third
parties.  All entries to
the Building are controlled by card-actuated “mag-lock”
devices.  Additionally, an after-hours telephone access station will
be located adjacent to the main lobby entry.  Landlord will allow
integration of Tenant’s private security system if feasible.  Tenant
shall be responsible for any additional costs related to the expanded security
system.

    

    17.           EMINENT
DOMAIN

    

    If the Premises or any portion thereof
or the Project are taken under the power of eminent domain, or sold under the
threat of the exercise of said power, 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 or the Project
are taken by such condemnation as would substantially and adversely affect the
operation and profitability of Tenant's business conducted from the Premises,
Tenant shall have the option, to be exercised only in writing within thirty (30)
days after Landlord shall have given Tenant 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 Tenant 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 Tenant'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
Tenant and no reduction of rent shall occur with respect thereto or by reason
thereof. Landlord shall have the option in its sole discretion to terminate this
Lease as of the taking of possession by the condemning authority, by giving
written notice to Tenant of such election within thirty (30) days after receipt
of notice of taking by condemnation of an) part of the Premises or the Project.
Any award for the taking of all or any part of the Premises or the Project under
the power of eminent domain or any payment made under threat of the exercise of
such power shall be the property of Landlord, 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 Tenant shall be
entitled to any separate award for loss of or damage to Tenant's trade fixtures,
removable personal property, Tenant’s improvements or for
damages for cessation or interruption of Tenant's business.

    

    In the event that this Lease is not
terminated by reason of such condemnation, Landlord shall to the extent of
severance damages received by Landlord in connection with such condemnation,
repair any damage to the Premises caused by such condemnation except to the
extent that Tenant has been reimbursed therefor by the condemning authority.
Tenant shall pay any amount in excess of such severance damages required to
complete such repair.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    18.           SUBORDINATION

    

    This Lease and any option granted
hereby shall be superior  to any mortgage or deed of trust that
may  hereafter be placed upon the Building or any part thereof and to
any and all advances to be made thereunder and to the interest thereon and to
all renewals, replacements and extensions thereof provided Tenant will agree to
subordinate the Lease upon its receipt of a fully executed Non-Disturbance
Agreement reasonably satisfactory to Tenant.  Tenant shall, in
the event any proceedings are brought for the foreclosure of any such mortgage
or deed of trust, attorn to the purchaser upon foreclosure sale or sale under
power of sale, and shall recognize such purchaser as Landlord under this
Lease. Landlord  shall use its reasonable best
efforts best efforts to obtain timely execution of a Non-Disturbance agreement
on Tenant’s behalf by Landlord’s existing
lender(s).

    

    19.           ESTOPPEL
CERTIFICATE

    

    Tenant shall at any time and, from time
to time, to the extent
accurate and truthfully upon not less than ten (10) days' prior written
notice from Landlord execute, acknowledge and deliver to Landlord a statement in
writing in a form substantially similar to Exhibit "F" attached hereto (a)
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 dates to which the
rent and any other charges are paid in advance, if any, (b) acknowledging that
there are not, to Tenant's knowledge, any uncured default on the part of
Landlord, or specifying such defaults if any are claimed, and (c) containing any
other information that Landlord may reasonably require. Any such statement may
be relied upon conclusively by any prospective purchaser or encumbrancer of the
Building that the matters
set forth therein are true and correct.

    

    20.           ATTORNEYS'
FEES

    

    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
reasonable attorneys' 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 judgment. The attorneys' fee award shall not be computed in
accordance with any court fee schedule, but shall be such as to fully reimburse
all attorneys' fees reasonably incurred in good faith. Landlord shall be
entitled to reasonable attorneys' fees and all other costs and expenses incurred
in the preparation and service of notices of default and consultations in
connection therewith, whether or not a legal action is subsequently commenced in
connection with such default.

    

    21.           PARKING

    

    So long as Tenant is not in default,
and subject to such rules and regulations as may be established by Landlord from
time to time, Tenant shall be entitled to use, on a nonexclusive basis, the
number of parking spaces in the Project's on-site parking facilities specified
in the Basic Lease Provisions. Landlord shall have the right to designate the
location of such parking spaces and may reserve certain spaces from Tenant's
use, or as "Visitor Only," as Landlord, in its sole discretion, may determine.
Landlord agrees to provide no
less than ten (10) spaces of unassigned “visitor” parking near the building main
entrance.  Such separate and additional charge, if required by
Landlord, shall be as established, from time to time, by Landlord, and any
failure by Landlord to require such a separate and additional charge, at any
time during the Term, shall not operate as a waiver or otherwise preclude
Landlord from later instituting such a separate and additional charge; provided,
however, that if Landlord has agreed to provide that certain number of parking
spaces specified in the Basic Lease Provisions to Tenant for no charge or for a
specified charge, Landlord agrees not to institute any separate or additional
charge for those specified spaces during the original term of this Lease and any option, extension or renewal
terms.

    

    22.           NOTICE

    

    22.1           Manner of Service. All
notices, demands or requests from one party to another shall be in writing and
may be (i) by personal delivery with notice effective on the date of personal
delivery, (ii) by nationally recognized overnight courier offering guaranteed
delivery, such as Federal Express, DHL, or Express Mail, in which case service
shall be effective on the business day of guaranteed delivery, (iii) by
certified or registered mail, postage prepaid, to the addresses specified in the
Basic Lease Provisions, in which case service shall be effective on the second
business day after mailing. Notices to Tenant shall be deemed sufficiently given
if delivered as described in this Section to Tenant at address specified in
Section 14 of Basic Lease Provisions.

    

    22.2           Change of Place of Service.
Each party shall have the right, from time to time, to designate a different
address by notice given in conformity with this Section to the other
party.

    

    23.           HOLDING
OVER BY TENANT

    

    Tenant agrees upon the expiration or
termination of this Lease pursuant to this
agreement, immediately and peaceably to yield up and surrender the
Premises; notice to quit or vacate is hereby expressly waived. Tenant shall be
liable to Landlord for any and all damages incurred by Landlord as the result of
any failure by Tenant to timely surrender possession of the Premises as required
herein. If Tenant, with Landlord'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 Tenant, except that the rent payable
shall be one
hundred fifty percent (150%) one hundred
twenty five percent (125%) 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 of no
further effect during said month to month tenancy.

    

    24.           WAIVER

    .

    No waiver by Landlord of any provision
hereof shall be deemed a waiver of any other provision hereof or of any
subsequent breach by Tenant of the same or any other provision. Landlord's
consent to, or approval of, any act shall not be deemed to render unnecessary
the obtaining of Landlord's consent to or approval of any subsequent act by
Tenant. The acceptance of rent hereunder by Landlord shall not be a waiver of
any preceding breach by Tenant of any provision hereof, other than the failure
of Tenant to pay the particular rent so accepted, regardless of Landlord's
knowledge of such preceding breach at the time of acceptance of such
rent.

    

    25.           TIME
OF THE ESSENCE

    

    TIME IS OF THE ESSENCE OF THIS LEASE
WITH RESPECT TO THE OBLIGATIONS TO BE PERFORMED UNDER THIS LEASE.

    

    26.           SUCCESSORS
AND ASSIGNS

    

    The covenants and conditions herein
contained shall, subject to the provisions as to assignments, apply to and bind
the heirs, successors, executors, administrators and assigns of the respective
parties hereof. If more than one person or entity is indicated as Tenant herein,
each person or entity subscribing as Tenant shall be jointly and severally
liable for all obligations of Tenant hereunder.

    

    27.           LANDLORD'S
RESERVATIONS

    

    In addition to its other rights
retained or reserved herein, Landlord shall have the right to change the name,
number or designation of the Building or the Project without notice or liability
to Tenant. In addition, Tenant shall not, without Landlord's prior written
consent, use the name of the Building or the Project for any purpose other than
as the address of the business to be conducted by, Tenant at the Premises, and
in no event shall Tenant acquire any rights in or to such names. Landlord shall
have the right to (a) at Tenant's Landlord’s
expense, provide and install Building standard graphics or art on the door to the Premises
and/or such portions of the Common Areas as Landlord shall reasonably
deem appropriate; (b) permit any Tenant the exclusive right to conduct any
business as long as such exclusive does not conflict with any rights expressly
given herein; (c) place such signs, notices or displays as Landlord reasonably
deems necessary or advisable upon the roof, exterior of the buildings or the
Project or on pole signs in the Common Areas; (d) reasonably designate, limit,
restrict and control any business and any service in or to the Building or its
tenants; (e) keep in a secure area, and to use
in appropriate instances subject to the terms of this
Lease, keys to all doors into and within the Premises except for secure areas designated
by Tenant. Tenant hereby agrees that no locks shall be changed or added
without the prior written consent of Landlord. Landlord reserves to itself the
right, from time to time, to grant such easements, rights and dedications that
Landlord 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
Tenant. Tenant shall sign any of the aforementioned documents within ten (10)
days after written request by Landlord, and failure to do so shall constitute a
material default under this Lease by Tenant without the need for further notice
to Tenant.

    

    28.           BROKERAGE
COMMISSION

    

    With the exception of the real estate
brokerage commission, if any, payable to the party identified in the Basic Lease
Provisions, pursuant to separate written agreement with Landlord, and which
commission Landlord hereby agrees to pay, Tenant and Landlord each represent and
warrant to the other that neither has had any dealings with any person, firm,
broker or finder in connection with the negotiation of this Lease and/or the
consummation of the transaction contemplated hereby, and no other broker or
other person, firm or entity is entitled to any commission or finders fee in
connection with said transaction and Tenant and Landlord do each hereby
indemnify and hold the other harmless from and against any costs, expenses,
attorney’s fees, or liability for compensation or charges which may be claimed
by any such unnamed broker, finder or other similar party by reason of any
dealings or actions of the indemnifying party.

    

    29.           FINANCIAL
STATEMENTS

    

    At any time during the term of this
Lease but no more often than
once in any calendar year, Tenant shall, upon thirty (30) days' prior
written notice from Landlord, provide Landlord with the most recent existing
financial statement and existing financial statements of the two (2) years prior
to the most recent financial statement year. Such statements shall be prepared
in accordance with generally accepted accounting principles and, if such is the
normal practice of Tenant, shall be audited and certified by an independent
certified public accountant.

    

    
      	
              30.  

            	
              FORCE
      MAJEURE

            

    

    

    Whenever
the period of time is herein prescribed for action to be taken by Landlord or
Tenant, Landlord or Tenant shall not be liable or responsible for, and there
shall be excluded from the computation for any such period of time, any delays
due to Force Majeure, which term shall include strikes, riots, acts of God,
shortages of labor or materials, war, governmental approvals, laws, regulations,
or restrictions, or any other cause of any kind whatsoever which is beyond the
reasonable control of Landlord or Tenant. Force Majeure shall not excuse or
delay Tenant’s obligation to pay Rent or any other amount due under this
Lease.

    

    31.           GOVERNING
LAW

    

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

    

    32.           CAPTIONS
AND INTERPRETATIONS

    

    The section and paragraph captions
contained in this Lease are for convenience only and shall not be considered in
the construction or interpretation of any provision hereof.

    

    33.           SEVERABILITY

    

    If any term, covenant, condition or
provision of this Lease is held by a court of competent jurisdiction to be
invalid, void or unenforceable, the remainder of the provisions shall remain in
full force and effect and shall in no way be affected, impaired or
invalidated.

    

    34.           LEASE
NOT EFFECTIVE UNTIL EXECUTED; AUTHORITY TO EXECUTE LEASE

    

    Submission by Landlord of this Lease
for examination or signature by Tenant shall not constitute an option and this
Lease shall not become effective until executed by both Tenant and Landlord and
delivery of the fully executed instrument to such parties. This Lease shall not
be deemed to be executed by Landlord until signed by an authorized member or
officer partner of Landlord. If a party hereto is a corporation, partnership,
limited liability company, trust or other entity, each individual executing this
Lease on behalf of said entity represents and warrants that he or she is duly
authorized to execute and deliver this Lease on behalf of such entity in
accordance with a duly adopted resolution of its governing body or in accordance
with the governing documents of such entity, and that this Lease is binding upon
such entity in accordance with its terms.

    

    35.           EXHIBITS
AND ADDENDA TO LEASE

    

    All Exhibits or Addenda referenced in
this Lease (or which are executed concurrently herewith and attached hereto and
refer to this Lease) are incorporated herein by reference and shall constitute a
part of this Lease.

    

    36.           GUARANTY

    

    Upon execution of this
Lease, Tenant shall cause to be executed by the person(s) set forth in the Basic
Lease Provisions and delivered to Landlord a Guaranty of Lease in the form
attached hereto as Exhibit "E."

    

    37.           RECORDATION
OF LEASE

    

    Neither this Lease nor any Memorandum
hereof shall be recorded without the express written consent of
Landlord.

    

    38.           ENTIRE
AGREEMENT

    

    This Lease constitutes the entire
agreement between the parties hereto pertaining to the subject matter hereof,
fully supersedes any and all prior negotiations, understandings,
representations, warranties and agreements between the parties hereto, or any of
them, pertaining to the subject matter hereof, and may be modified only by
written agreement, signed by all of the parties hereto.

    

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

    

    This Lease has been prepared with the
joint participation of each party hereto and their respective counsel, and each
provision herein shall be construed according to its fair meaning, rather than
in favor of any one of the parties hereto, or against one of the parties hereto,
because such party was the principal or primary author of such
provision.

    

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

     

    

      
        	 
      	
                BY
      TENANT:

                CONVERA
      Corporation

                A
      Delaware Corporation

                 

              	 
      	 
      	
                BY
      LANDLORD:

                ASTON
      VIEWS, LLC

                A
      California limited liability company

              
	
                By:

              	
                /s/James Buchanan

              	 
      	
                By:

              	
                /s/Mark D. McLaren

              
	
                Name:

              	
                James Buchanan

              	 
      	
                Name:

              	
                Mark D. McLaren

              
	
                Title:

              	
                CFO

              	 
      	
                Title:

              	
                Managing Member

              
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/Martin Nowakowski

              	 
      	
                By:

              	 
      
	
                Name:

              	
                Martin Nowakowski

              	 
      	
                Name:

              	 
      
	
                Title:

              	
                Mgr. Facilities &
      Administration

              	 
      	
                Title:

              	 
      

      

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
A

    

    FLOOR
PLAN WITH PREMISES DEPICTED

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
"B"

    

    RULES
AND REGULATIONS FOR ASTON VIEWS CORPORATE CENTER

    

    

    
      	
              1.

            	
              No
      tenant or its agents or employees shall loiter in the mail areas or other
      Common Areas of the Building, nor shall they in any way obstruct the
      sidewalks, entry passages, pedestrian passageways, driveways, entrances
      and exits to the Building, and they shall use the same only as passageways
      to and from their respective premises. 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 the rules and regulations
      of the Building.

            

    

    

    
      	
              2.

            	
              No
      sash doors, sashes, windows, glass doors, lights and skylights that
      reflect or admit light into the Common Areas of the Building shall be
      covered or obstructed by any tenant, and doors leading into the Common
      Areas from tenant premises shall not be left open by any
      tenant.

            

    

    

    
      	
              3.

            	
              Water
      closets and urinals shall not be used for any purpose other than those for
      which they were constructed, and no rubbish, newspapers, food or other
      substances of any kind shall be thrown into them. No tenant or his agents
      and employees shall throw or discard cigar or cigarette butts or other
      substances or lifter of any kind in or about the Building, except in
      receptacles placed therein for such purposes by Landlord or governmental
      authorities. All garbage, including wet garbage, refuse or trash shall be
      placed by each tenant in the receptacles provided by Landlord for that
      purpose and only during those times prescribed by
  Landlord.

            

    

    

    
      	
              4.

            	
              Tenants
      shall not mark, drive nails, screw or drill into, paint or in any way
      deface, any exterior walls, roof foundations, bearing walls or pillars
      without the prior written consent of Landlord. No boring or cutting for
      wires shall be allowed, except with the consent of Landlord. The expense
      of repairing any breakage, stoppage or damage resulting from a violation
      of this rule or the preceding rule shall be borne by the tenant violating
      or responsible for the violation of such
rule.

            

    

    

    
      	
              5.

            	
              Tenant
      shall not alter any lock or install new or additional locks or bolts in or
      about the Premises, without the written approval of
    Landlord.

            

    

    

    
      	
              6.

            	
              No
      curtains, blinds, screens, shades, window tinting, or other window
      coverings shall be attached to or hung in any window visible from the
      exterior of the Premises without the prior written consent of Landlord. No
      bottles, parcels, or other articles shall be placed on the window or
      storefront sills such that they may be observed from outside the
      Premises.

            

    

    

    
      	
              7.

            	
              No
      tenant shall do anything in any premises, or bring or keep anything
      therein, which will in any way increase or tend to increase the risk of
      fire or the rate of fire insurance or which shall conflict with applicable
      law, rules or regulations established by any governmental body or official
      having jurisdiction, the regulations of the fire department or the
      provisions or requirements of any insurance policy on such premises or any
      part thereof. Tenant shall not use any machinery in its premises, even
      though the installation may have been originally permitted, which may
      cause any unreasonable noise or jar, or tremor to the floors or walls, or
      which by its weight might injure the walls or floors of such premises or
      any other portion of the Building.

            

    

    

    
      	
              8.

            	
              Landlord
      may limit the weight, size and position of all filing systems, computers,
      safes, fixtures and other heavy equipment used in any premises. In the
      event any tenant shall require heavy equipment, such tenant shall notify
      Landlord of such fact and shall pay the cost of any structural bracing
      required to accommodate the same. All damage done to such premises or to
      any other portion of the Building resulting from installing, removing or
      maintaining extra heavy equipment shall be repaired at the expense of the
      tenant which maintains such
equipment.

            

    

    

    
      	
              9.

            	
              No
      tenant or its agents and employees shall make or permit any loud, unusual
      or improper noises in the Building, nor interfere in any way with other
      tenants or those having business with them, nor bring into nor keep within
      the Building any animal or bird (with the exception of the authorized pet
      store), or any bicycle or other vehicle, except such vehicles as tenants
      are permitted to park in the Building parking lot, and shall park only in
      the areas designated from time to time for employee parking generally. No
      radio or television or other similar device shall be installed without
      first obtaining in each instance Landlord's consent in writing. No aerial
      shall be erected on the roof or exterior walls of any premises, or on the
      ground, without in each instance, the written consent of Landlord. Any
      aerial so installed without such written consent shall be subject to
      removal without notice at any time.

            

    

    

    
      	
              10.

            	
              All
      freight must be moved into, within and out of tenant premises only during
      such hours and according to such regulations and may be posted from time
      to time in Landlord's general
offices.

            

    

    

    
      	
              11.

            	
              Tenant
      shall not employ any service or contractor for services or work to be
      performed in the Building, except as approved by
  Landlord.

            

    

    

    
      	
              12.

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

            

    

    

    
      	
              13.

            	
              Tenant
      shall not suffer or permit smoking or carrying of lighted pipes, cigars or
      cigarettes other than in areas designated by Landlord in the Common Areas
      as smoking areas. At Landlord’s sole option, Landlord may grant Tenant the
      temporary and revocable permission to install a smoking area within the
      Premises. The cost of installing and maintaining of any smoking area
      within the Premises shall be charged to Tenant, including but not limited
      to costs of additional cleaning, air conditioning or other work whatsoever
      required to prevent any effects of the smoking area from reaching any
      other area in the Building. Landlord reserves the right to revoke Tenant’s
      temporary permission to a smoking area within the Premises, at Landlord’s
      sole option.

            

    

    

    
      	
              14.

            	
              Tenant
      shall not use any method of heating or air conditioning without prior written approval
      of Landlord.

            

    

    

    
      	
              15.

            	
              Tenant
      shall not install, maintain or operate any vending machine upon the
      Premises without Landlord's written
consent.

            

    

    

    
      	
              16.

            	
              The
      Premises shall not be used for food preparation, lodging, manufacturing,
      or storage of merchandise, except as such  may be incidental to
      use of the Premises for general office
purposes.

            

    

    

    
      	
              17.

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

            

    

    

    
      	
              18.

            	
              Tenants
      are required to observe all security regulations issued by Landlord and to
      comply with instructions and/or directions of the duly authorized security
      personnel for the protection of the Building and all tenants therein.
      Access by any tenant to his premises or the Building before or after hours
      of operation of the Building shall be subject to clearance by the security
      personnel of the Building and to compliance with such procedures as may be
      imposed by such personnel, including presentation of identification to
      such personnel.

            

    

    

    
      	
              19.

            	
              Landlord
      reserves the right, but shall not have the obligation, to close and keep
      locked any and all entrances and exit doors and gates of the Building and
      gates or doors closing the parking areas thereof during such hours as
      Landlord may deem to be advisable for the adequate protection of the
      Building and all tenants therein.

            

    

    

    
      	
              20.

            	
              Parking
      areas shall be used only for parking by vehicles no longer than full size,
      passenger automobiles. Tenant shall not permit or allow any vehicles that
      belong to or are controlled by Tenant or Tenant's employees, suppliers,
      shippers, customers, or invitees to be loaded, unloaded, or parked in
      areas other than those designed by Landlord for such activities. Users of
      the parking area will obey all posted signs and park only in the areas
      designated for vehicle parking. Tenant shall be responsible for seeing
      that all of its employees, agents and invitees comply with the applicable
      parking rules, regulations, laws and agreements. The maintenance, washing,
      waxing or cleaning of vehicles in the parking structure or Common Areas is
      prohibited.

            

    

    

    
      	
              21.

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

            

    

    

    
      	
              22.

            	
              Such
      parking use as is herein provided is intended merely as a license only and
      no bailment is intended or shall be created hereby. Unless otherwise
      instructed, every person using the parking area is required to park and
      lock his own vehicle. Landlord will 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.

            

    

    

    
      	
              23.

            	
              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
      Building, for the preservation of good order therein and for the
      convenience of tenants and visitors to the Building, Any such amendments,
      deletions or additions to these rules and regulations shall be effective
      immediately upon delivery of written notice thereof to tenants. No waiver
      of any rule or regulation by Landlord shall be effective unless expressed
      in writing and signed by Landlord. Landlord shall not be responsible to
      any tenant or any other person for the nonobservance or violation of these
      rules and regulations by any other tenant or other
  person.

            

    

    

    
      	
              24.

            	
              A
      copy of these rules and regulations shall be attached to and form a part
      of each tenant lease at the Building, Each tenant who executes a lease of
      space at the Building shall be deemed to have read these rules and
      regulations and to have agreed to abide by them as a condition to its
      occupancy of space at the Building.

            

    

    

    

    In
the event of any conflict between these rules and regulations, or any amendments
or additions thereto, and the provision of any tenant's lease, such lease
provisions shall control.

    
      
        
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    EXHIBIT
"C"

    

    STANDARDS
FOR UTILITIES AND SERVICES

    

    Landlord
shall provide the utilities and services set forth in this exhibit at all times
during the term of the Lease, subject to the provisions of the Lease concerning
Landlord's inability to supply such utilities and services due to causes beyond
Landlord's control. Landlord reserves the right to adopt such reasonable
nondiscriminatory modifications and additions to the following standards as it
deems necessary and appropriate from time to time. Landlord shall not be
obligated to supply any utilities or services to Tenant at any time during which
Tenant is in default under the terms of the Lease.

    

    1.           Landlord
shall provide automatic elevator services on Monday through Friday from 7:00
a.m. to  7:00
p.m. and on Saturday from 8:00 a.m. to 12:00 p.m.; provided, however, that
Landlord shall not be obligated to provide such elevator services on the
following federal holidays: New Years Day, President's Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day, Day after Thanksgiving, and
Christmas Day (such times referred to in this Exhibit as "Business Hours"). At
all other times, Landlord shall provide at least one elevator operated by
security personnel or by an automatic security access system.

    

    2.           Landlord
shall provide to the Premises, during Business Hours (and at other times for an
additional charge to be fixed by Landlord), heating, ventilation, and air
conditioning ("HVAC") when and to the extent in the judgment of Landlord any
such sources may be required for the comfortable occupancy of the Premises for
general office purposes. Landlord shall not be responsible for room temperatures
and conditions in the Premises if the lighting or receptacle load for Tenant's
equipment and fixtures exceed those listed in Section 3 of this Exhibit, if the
Premises are used for other than general office purposes or if the building
standard blinds and curtains in the Premises are not used and/or closed to
screen the rays of direct sunlight. If any lights, machines or equipment
(including, without limitation, computers) are used by Tenant in the Premises
which materially affect the temperature otherwise maintained by the Building
HVAC or generate 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, without limitation, 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 by Landlord.

    

    3.           Landlord
shall furnish to the Premises during Business Hours electric current for routine
lighting and operation of general office machines such as typewriters, dictating
equipment, desk model adding machines, and similar devices which operate on 110
volt alternating current electrical power with demands, wattages and ampere
draws which do not exceed the reasonable capacity of building standard office
lighting and receptacles and are not in excess of limits imposed or recommended
by governmental authorities. Landlord shall replace bulbs and/or ballasts in
building-standard florescent lighting fixtures within the Premises. Tenant shall
be responsible for replacing all other non-building-standard items (nonstandard
bulbs, ballasts, ceiling tiles, etc.). Landlord shall furnish to the lavatories
within the Premises or within the Common Areas water for normal lavatory and
drinking purposes.

    

    4.           Excluding
typical office equipment, no computers, data processing equipment, photocopying
machines or other special electrical equipment, air conditioning systems,
heating systems, or space heaters shall be installed nor shall any changes be
made the HVAC, electrical or plumbing systems in the Building without the prior
written approval of Landlord in accordance with the provisions of the Lease
governing alterations requested by Tenant. Tenant shall not without the prior
written consent of Landlord, which consent shall not be unreasonably withheld,
use any apparatus, machines or devices in the Premises (including, without
limitation, photocopier or duplicating machines, computers, printers, vending
machines;, or other equipment) which uses current in excess of 110 volts AC or
which has a demand, wattage or ampere draw which exceeds the electrical systems
installed in the Building or in any way which will increase the amount of
electricity or water usually supplied for the use of the Premises for general
office purposes.

    

    5.           Landlord
may impose reasonable conditions upon any consent for use of any apparatus,
machine or device which exceeds the limitations set forth in this Exhibit.
Tenant agrees to cooperate fully with Landlord at all times to abide by all
regulations and requirements which Landlord may prescribe for proper functioning
and protection of the Building HVAC, electrical and plumbing systems. Tenant
shall comply with all laws, statutes, ordinances and governmental rules and
regulations now in force or which may be enacted or promulgated in connection
with building services furnished to the Premises, including, without limitation,
any governmental rule or regulation relating to the heating or cooling of the
Building.

    

    6.           Landlord
shall provide janitorial services to the Premises prior to 7:00 a.m. of each
working day, Monday through Friday (except for the above-listed federal
holidays) provided the Premises are used exclusively for the uses permitted by
the Lease and are kept in reasonable order by Tenant. Tenant shall pay to
Landlord any extra cost for cleaning or removal of any rubbish or garbage to the
extent the nature or amount of such cleaning, refuse or garbage exceeds the
amount which is generally produced by use of the Premises for general office
purposes.

    
      
        
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      EXHIBIT
"D"

      

      WORK
LETTER AGREEMENT

      

      

      CONCURRENTLY WITH THE EXECUTION OF THIS
WORK LETTER AGREEMENT (the "Work Letter Agreement"), Landlord and Tenant have
executed an Office Building Lease (the "Lease"), covering the Premises. Unless
the context otherwise requires, the terms defined in the Lease shall have the
same meanings when used herein. This Work Letter Agreement is incorporated into
the Lease as Exhibit "D" thereto. Tenant desires that certain work be
performed  in the Premises to make the Premises ready for
Tenant.

      

      NOW, THEREFORE, in consideration of the
mutual covenants contained in the Lease and in this Work Letter Agreement,
Landlord and Tenant agree as follows:

      

      
        	
                 
      

              	
                1.

              	
                Definitions

              

      

      

      
        	
                 
      

              	
                1.1

              	
                "Approved
      Plans" are defined in Section 5.1
below.

              

      

      

      
        	
                 
      

              	
                1.2

              	
                "Estimated
      Work Cost" is defined in Section 4.2
below.

              

      

      

      
        	
                 
      

              	
                1.3

              	
                "Preliminary
      Plans" are defined in Section 3.1
below.

              

      

      

      
        	
                 
      

              	
                1.4

              	
                "Space
      Planner" shall mean a
      Space Planner selected by Tenant and approved by
      Landlord.

              

      

      

      
        	
                 
      

              	
                1.5

              	
                "Contractor"'
      shall mean  a
      General Contractor selected by Tenant and approved by
      Landlord.

              

      

      

      
        	
                 
      

              	
                1.6

              	
                "Standards"
      shall mean Landlord's usual specifications for standard leasehold
      improvements in the Building.

              

      

      

      
        	
                 
      

              	
                1.7

              	
                "Tenant
      Improvements" shall mean all improvements made to the Premises other than
      those that are physically in place at the Premises as of the date of the
      execution of the Lease.

              

      

      

      
        	
                 
      

              	
                1.8

              	
                "Tenant's
      Allowance" shall mean the sum specified in the Basic Lease Provisions
      per  rentable square foot of
      the Premises, which shall be paid by Landlord toward the cost of
      completion of the Tenant
Improvements.

              

      

      

      
        	
                 
      

              	
                1.9

              	
                "Tenant's
      Programming Information" shall mean all information necessary for the
      preparation of the Preliminary Plans, including without limitation
      electrical requirements, telephone, special heat generating equipment,
      plumbing requirements, special finishes, number and sizes of offices,
      number of secretarial stations and special data processing
      requirements.

              

      

      

      
        	
                 
      

              	
                1.10

              	
                Tenant
      approval, authorization, consent or other required action shall mean such
      action taken or authorized by Tenant, Landlord shall have the right to
      rely on such approval, authorization, consent or other action, until
      Tenant advises Landlord in writing that some other person has such
      authority.

              

      

      

      
        	
                 
      

              	
                1.11

              	
                Other
      terms are defined in this Work Letter Agreement. In addition, terms
      defined in the Lease shall have the same meanings where used herein,
      unless the context otherwise
requires.

              

      

      

      
        	
                 
      

              	
                2.

              	
                Schedule

              

      

      

      

      

      
        	
                 
      

              	
                2.1

              	
                Tenant
      and  Space Planner shall furnish to Landlord the Preliminary
      Plans within  thirty (30) days
      following execution of
      the Lease.

              

      

      

      
        	
                 
      

              	
                2.2

              	
                Tenant shall furnish to
      Landlord the
      Estimated Work Cost and the identity of  Contractor within fifteen (15) days following
      completion of Preliminary
Plans.

              

      

      

      
        	
                 
      

              	
                23

              	
                Tenant
      shall furnish to Landlord written notice of its acceptance or rejection of
      the Estimated Work Cost within ten (10) days after receipt of same
      .

              

      

      

      
        	
                 
      

              	
                2.4

              	
                If
      Tenant rejects the Estimated Work Cost, Tenant shall meet with the Space
      Planner and  Contractor to revise the Preliminary Plans within
      ten (10) days after furnishing such rejection to Landlord
  .

              

      

      

      
        	
                 
      

              	
                2.5

              	
                Tenant shall cause its
      architect and engineer to prepareand  furnish to Tenant and Landlord
      construction drawings and specifications for Tenant Improvements based on
      the Preliminary Plans within twenty (20) days
      following Tenant's and
      Landlord’s approval of the Preliminary
  Plans.

              

      

      

      
        	
                 
      

              	
                2.6

              	
                Tenant
      shall furnish to Landlord written notice of its acceptance or rejection of
      the construction drawings within ten (10) days after receipt of same
      .

              

      

      

      
        	
                 
      

              	
                2.7

              	
                Contractor shall
      prepare and furnish to Tenant and Landlord a final
      cost proposal based upon the Approved Plans within ten (10) days after
      Tenant's approval or deemed approval of the Approved
  Plans.

              

      

      

      
        	
                 
      

              	
                2.8

              	
                If
      the final cost proposal is greater than the Estimated Work Cost, Tenant
      shall furnish to Landlord written notice of its acceptance or rejection of
      the final cost proposal within ten (10) days after receipt of same . If
      Tenant rejects the final cost proposal, Tenant may elect the
      Competitive Bid described in Paragraph 8
below.

              

      

      

      
        	
                 
      

              	
                2.9

              	
                Tenant shall cause its
      Contractor to complete the construction of the Tenant Improvements within
      sixty (60) days following approval of the Approved Plans, receipt of all
      building permits required by governmental agencies having jurisdiction
      thereof, and/or approval of the final cost proposal, whichever is
      later.

              

      

      

      
        	
                 
      

              	
                 3.

              	
                Preliminary
      Plans

              

      

      

      
        	
                 
      

              	
                .

              	
                3.1

              	
                Tenant
      shall furnish  its Programming
      Information to Space
      Planner . Thereafter, Tenant
      shall cause the Space Planner to prepare preliminary space plans and
      specifications (the "Preliminary Plans") for all leasehold improvements to
      be constructed  for Tenant in the Premises, which Preliminary
      Plans shall be sufficient to obtain an Estimated Work Cost
      for the construction and installation of the Tenant Improvements as
      shown thereon. The cost of the preparation of Preliminary Plans shall be
      charged against the Tenant's Allowance. Tenant shall furnish the
      Preliminary Plans to Landlord by the time set forth in Section 2.1 above. Tenant shall furnish
      the Estimated Work Cost to Landlord by the time
      set forth in Section 2.2
      above.

              

      

      

      
        	
                 
      

              	
                3.2

              	
                In
      the preparation of Preliminary Plans and Approved Plans, no deviation
      shall be permitted from the Standards with respect to entry doors and
      hardware, entry graphics, ceiling systems, life safety systems or
      perimeter window coverings. Subject to Landlord's approval, Tenant may
      deviate from the Standards as to partitions, floor coverings, wall
      finishes, special lighting fixtures or other items as to which deviations
      may be permitted, provided that no deviation shall be of lesser quality
      than the Standards. Landlord will not approve of any deviations which (a)
      do not conform to applicable governmental regulations or are disapproved
      by any governmental agency, (b) that require Building service beyond the
      level normally provided to other tenants in the Building, (c) that because
      of fabrication time or other factors would delay the construction schedule
      (unless Tenant agrees that the Commencement Date will not be extended by
      such delay), or (d) that in Landlord's reasonable opinion are of a nature
      or quality that are inconsistent with Landlord's overall plan or
      objectives for the Building.

              

      

      

      
        	
                 
      

              	
                4.

              	
                Tenant's
      Allowance

              

      

      

      
        	
                 
      

              	
                4.1

              	
                Landlord
      shall pay for the construction and installation of the Tenant Improvements
      up to, but not in excess of, the Tenant's Allowance. Tenant shall pay the
      cost of all Tenant Improvements in excess of the Tenant's Allowance. The
      cost of Tenant Improvements shall include the cost of all labor and
      materials for the construction and installation of the Tenant
      Improvements; the cost of all permits, licenses and fees; all amounts paid
      to  Contractors under and pursuant to contracts for the
      construction and installation of the Tenant Improvements; all
      architectural, engineering, space planning and other consultants' fees;
      all amounts paid for mechanical drawings, plans, specifications, shop
      drawings, designs and layouts; and incidental costs related to the
      foregoing.

              

      

      

      
        	
                 
      

              	
                4.2

              	
                Tenant shall obtain an
      estimate of the cost of Tenant Improvements as shown on the Preliminary
      Plans. Tenant
      shall  notify Landlord of the amount
      of such cost estimate plus the amount required to pay for the preparation
      of architectural and engineering construction drawings for the Tenant
      Improvements (the "Estimated Work Cost"). TENANT CANNOT AND DOES
      NOT GUARANTY THE ACCURACY OF SUCH ESTIMATED WORK COST. If the Estimated
      Work Cost is less than or equal to the Tenant's Allowance, then Tenant shall proceed in
      accordance with Section 5 below.

              

      

      

      
        	
                 
      

              	
                4.3

              	
                If
      the Estimated Work Cost is greater than the Tenant's Allowance, then
      Tenant shall give written notice to Landlord of Tenant's acceptance or
      rejection of the Estimated Work Cost within the time period set forth in
      Section 2.3
      above. Unless Landlord receives Tenant's written rejection within
      such period, the Estimated Work Cost shall be deemed accepted by Tenant.
      If within such period Landlord receives Tenant's written rejection of the
      Estimated Work Cost, then within the time period set forth in Section
      2.4 above, Tenant
      shall meet with the Space Planner and  Contractor to revise the
      Preliminary Plans. At such meetings, Tenant may, at Tenant's option, elect
      to eliminate one or more items shown on the Preliminary Plans so as to
      reduce the Estimated Work Cost. All costs of Tenant-initiated changes
      requiring revisions, including engineering, estimating, coordination,
      layout and printing of drawings, specification changes and any other
      incidental expenses, shall be included in the cost of the Tenant
      Improvements. Following such revisions, Tenant shall submit a
      new Estimated Work Cost to Landlord, and the same
      procedure will be followed as set forth above until Tenant has accepted a
      proposal. Any time consumed in revising plans or in revising the Estimated
      Work Cost shall be considered a Tenant Delay (as defined in Section 6.2
      hereto and shall not delay the Commencement Date of the Lease. If Tenant
      does not so elect to revise the Preliminary Plans, or if Tenant does so
      elect but the Estimated Work Cost after accounting for the revisions is
      still greater than the Tenant's Allowance, or if Tenant otherwise approves
      or is deemed to have approved of the Estimated Work Cost, then Tenant
      shall forthwith deposit with Landlord an amount (the "Construction
      Deposit") equal to the difference between the Tenant's Allowance and the
      Estimated Work Cost (as the same may have been revised), whereupon Tenant shall proceed in
      accordance with Section 5 below.  Tenant shall have no
      obligation to increase the Construction Deposit for
      increases less than five percent (5%) Estimated Work Cost.

              

      

      

      
        	
                 
      

              	
                4.4

              	
                The
      Tenant's Allowance shall be available only for the cost of Tenant
      Improvements as described in Section 4.1 above. If the cost of Tenant
      Improvements is less than the Tenant's Allowance, the difference shall be
      paid to Tenant no later than thirty (30) days after completion of
      “punchlist” items (described in 6.1 of the work
      letter).

              

      

      

      
        	
                 
      

              	
                4.5

              	
                Tenant  will review and approve all
      invoices and charges applied against the Tenant's Allowance . Any
      questions or disputes concerning the charges shall be communicated in
      writing to Landlord within thirty (30) days after the Commencement
      Date.

              

      

      

      
        	
                 
      

              	
                5.

              	
                Construction
      of Tenant Improvements

              

      

      

      
        	
                 
      

              	
                5.1

              	
                Tenant shall cause its
      space planner and engineer to prepare construction drawings and
      specifications for the Tenant Improvements based strictly on the
      Preliminary Plans within the time period set forth in Section 2.5 above. Prior to the
      commencement of construction, Tenant shall be given an opportunity to
      review the construction drawings to confirm that they conform to the
      Preliminary Plans. Tenant shall have the time period set forth in Section
      2.6 above in
      which to give written notice to Landlord of Tenant's acceptance or
      rejection of the construction drawings. Unless Landlord receives Tenant's
      written rejection within such period, the construction drawings shall be
      deemed approved by Tenant ("Approved Plans"). Such Approved Plans shall
      create no responsibility or liability on the part of Tenant or Landlord for
      the completeness of such plans, their design sufficiency or compliance
      with applicable statutes, ordinances or
  regulations.

              

      

      

      
        	
                 
      

              	
                5.2

              	
                Within
      the time period set forth in Section 2.7 above, the Contractor shall
      prepare a final cost proposal based upon the Approved Plans. The final
      cost proposal shall contain a complete cost breakdown by line item,
      including without limitation costs of architectural and engineering fees,
      plan check and permit fees and other governmental fees, sales and use
      taxes and all other costs to be expended by or on behalf of Landlord in
      connection with the construction and installation of the Tenant
      Improvements. If the final cost proposal is less than or equal to the
      Estimated Work Cost, Tenant and Landlord
      shall authorize construction to commence. If the final cost proposal is
      greater than the Estimated Work Cost, Tenant shall have the time period
      set forth in Section 2.8 above in which to
      give written notice to Landlord of Tenant's acceptance or rejection of the
      final cost proposal. If Tenant rejects such cost proposal, Tenant shall
      meet with Landlord, the Space Planner and  Contractor to make
      revisions. All costs of Tenant-initiated changes requiring such revisions
      shall be included in the cost of the Tenant Improvements. Following such
      revisions, the
      Contractor shall submit a new cost proposal to Tenant and Landlord, and the
      same procedure will be followed as set forth above until Tenant has
      accepted a proposal. Any time consumed in revising the drawings or
      revising the estimated cost of construction shall be considered a Tenant
      Delay and shall not delay the Commencement Date of the
    Lease.

              

      

      

      
        	
                 
      

              	
                5.3

              	
                No
      work shall commence until the Approved Plans are filed with the
      governmental agencies having jurisdiction thereof, all required building
      permits have been obtained, and the Space Planner has certified that to
      the best of its knowledge, if performed in accordance with the Approved
      Plans, the work will comply with all laws, codes, regulations and statutes
      applicable to such work.

              

      

      

      
        	
                 
      

              	
                5.4

              	
                Tenant shall cause the
      Tenant Improvements to be constructed or installed in the Premises
      by  the
      Contractor in accordance with the Approved
  Plans.

              

      

      

      
        	
                 
      

              	
                5.5

              	
                Except as provided
      below, Tenant shall have no
      obligation  for defects in design, workmanship or materials, but
      shall use its reasonable best efforts to enforce the Contractor's
      obligations therefor and shallretain any
      manufacturers warranties with respect to the
  work.

              

      

      

      
        	
                 
      

              	
                5.6

              	
                Upon
      substantial completion of the construction and installation of the Tenant
      Improvements, Tenant shall pay to Landlord on demand the amount, if any,
      by which the actual costs incurred by or on behalf of Landlord in
      connection with the construction and installation of the Tenant
      Improvements, including the costs of any authorized change orders as
      defined below, exceeds the sum of the Tenant's Allowance and any amounts
      previously delivered by Tenant to Landlord pursuant to Section 4.3
      above.  Tenant
      shall have no obligation to pay for costs in excess of the final cost
      proposal unless Tenant has consented to such increased costs pursuant to
      Section 5.7.

              

      

      

      
        	
                 
      

              	
                5.7

              	
                Any
      changes to the construction work may be made only upon written request by
      Tenant approved in writing by Landlord, or as may be required by any
      governmental agency, or as may be required due to structural or
      unanticipated field conditions. In each instance, said change must be
      evidenced by a written change order describing the
      change.  Tenant shall approve all
      change orders materially affecting the Approved Plans or increasing the
      costs of the Tenant Improvements in excess of the final cost proposal
      approved by Tenant.

              

      

      

      
        	
                 
      

              	
                6.

              	
                Completion
      and Delays

              

      

      

      
        	
                 
      

              	
                6.1

              	
                The
      work to be performed by Tenant under this Work
      Letter Agreement shall be deemed substantially completed on the date on
      which the Premises are completed by Tenant in substantial
      conformance with the Approved Plans, except for remaining work fully
      described on a “punch list” to be prepared by Tenant, Landlord, and the Contractor and
      provided that the remaining work on the approved “punch list” will not
      substantially adversely affect Tenant’s ability to occupy the
      Premises.  Tenant and Landlord will do everything in
      their power to cause the Contractor to complete punch list items within a
      reasonable timeframe, which shall not exceed thirty (30) days after
      substantial completion of the
Premises.

              

      

      

      
        	
                 
      

              	
                6.2

              	
                If
      the Tenant
      Improvements are
      substantially delayed in being completed as a result of any of the
      following circumstances or events ("Tenant Delays"), the Commencement Date
      shall not be deferred by reason of such delay, to
  wit:

              

      

      

      
        	
                 
      

              	
                1.

              	
                Tenant's
      failure to furnish information in accordance with Section 2
      above;

              

      

      
        	
                 
      

              	
                2.

              	
                Tenant's
      request for any special, long-lead materials or installations as part of
      the Tenant Improvements that do not conform to the
    Standards;

              

      

      
        	
                 
      

              	
                3.

              	
                Tenant's
      changes in any drawings, plans or specifications, after the date of
      submission of the Approved Plans;

              

      

      
        	
                 
      

              	
                4.

              	
                Any
      changes initiated by Tenant by reason of Tenant's disapproval of cost
      proposals or resulting in the preparation of revised cost
      proposals;

              

      

      

      
        	
                 
      

              	
                6.

              	
                The
      delivery, installation or completion of any Tenant-finish work performed
      by Tenant's employees or agents;

              

      

      
        	
                 
      

              	
                7.

              	
                The
      performance of any Additional Tenant Work, or any failure to complete or
      delay in completion of such work;
or

              

      

      
        	
                 
      

              	
                8.

              	
                Any
      other act or omission of Tenantthat directly delays the
      Tenant Improvements from being
completed.

              

      

      

      
        	
                 
      

              	
                6.3

              	
                If,
      for any reason, Tenant cannot complete
      the Tenant Improvements by the Estimated Commencement Date, or perform any
      other covenant contained in this Work Letter Agreement or in the Lease
      related to the work described in this Work Letter Agreement, Landlord
      shall not be in breach of this Work Letter Agreement or the Lease, and
      shall not be subject to any liability therefor, nor shall such failure
      affect the validity of this Lease or the obligations of Tenant hereunder,
      except that in any such case (unless caused by Tenant Delays), Tenant
      shall not be obligated to pay rent or perform any other obligation of
      Tenant under the terms of the Lease (other than payment and performance
      due in advance of occupancy as provided in the Lease or this Work Letter
      Agreement), until possession of the Premises is tendered to
      Tenant.

              

      

      

      
        	
                 
      

              	
                7.

              	
                General

              

      

      

      
        	
                 
      

              	
                7.1

              	
                All
      drawings, space plans, plans and specifications for any improvements or
      installations in the Premises are  subject to Landlord's prior
      written approval. Any approval by Landlord or Landlord's architects or
      engineers of any of Tenant's drawings, plans or specifications which are
      prepared in connection with construction of improvements in the Premises
      shall not in any way bind Landlord or constitute a representation or
      warranty by Landlord as to the adequacy or sufficiency of such drawings,
      plans or specifications, or the improvements to which they relate, for any
      use, purpose or condition, but such approval shall merely evidence the
      consent of Landlord to Tenant's construction of improvements in the
      Premises in accordance with such drawings, plans or
      specifications.

              

      

      

      
        	
                7.2  

              	
                Any
      failure by Tenant to pay any amounts due hereunder shall have the same
      effect under the Lease as a failure to pay rent. Any such failure, or the
      failure by Tenant to perform any of its other obligations hereunder, shall
      constitute an event of default under the Lease, entitling Landlord to all
      of its remedies under the Lease, at law and in
  equity.

              

      

      
        	
                7.3  

              	
                All
      work, other than Landlord’s work, required by Tenant to render the
      Premises suitable for Tenant’s occupancy and use shall collectively be
      referred to as “Tenant’s Work”.  At its option, Tenant may elect
      to use it’s own Project Manager.  Landlord shall receive no
      supervision fee, overhead, profit or other fees for the administration of
      such work.  In addition, Landlord shall receive no fee (or
      reimbursement) for the review and approval of any of Tenant’s plans and
      specifications or any other documentation fee or other such fees or
      costs.  All Tenant’s work shall be completed in accordance with
      all applicable laws, including environmental laws, and in compliance with
      the Americans with Disabilities Act
(“ADA”).

              

      

      
        	
                7.4  

              	
                  Tenant
      and its architects, engineers, consultants and contractors (collectively,
      Tenant’s “Consultants”) shall have access to the Building and the Premises
      for the purpose of inspecting Landlord’s work and planning Tenant’s
      work.  Tenant shall have access to the Building for the
      performance of Tenant’s work.  In the event Landlord performs
      Tenant’s work, prior to substantial completion, Tenant shall be allowed at
      least 45 days early access to install cabling and other special Tenant
      items required prior to the Commencement Date.  Landlord and
      Tenant shall coordinate a mutually acceptable
  schedule.

              

      

      

      
        	
                 
      

              	
                8.

              	
                Competitive
      Bid

              

      

      

      
        	
                Tenant
      may elect to put the Preliminary Plans or the Approved Plans out for
      competitive bid to  contractors mutually approved by Landlord.
      All responses must be received within twenty (20) days after delivery of
      the Preliminary Plans or Approved Plans to
  Tenant.

              

      

      

      IN WITNESS WHEREOF, the parties have
executed this Work Letter Agreement, at San Diego, California, concurrently with
their execution of the Lease.

      

       

      
        
          	 
      	
                  TENANT:

                  CONVERA
      Corporation

                  A
      Delaware Corporation

                   

                	 
      	 
      	
                  LANDLORD:

                  ASTON
      VIEWS, LLC

                  A
      California limited liability company

                
	
                  By:

                	
                  /s/James Buchanan

                	 
      	
                  By:

                	
                  /s/Mark D. McLaren

                
	
                  Name:

                	
                  James Buchanan

                	 
      	
                  Name:

                	
                  Mark D. McLaren

                
	
                  Title:

                	
                  CFO

                	 
      	
                  Title:

                	
                  Managing Member

                
	 
      	 
      	 
      	 
      	 
      
	
                  By:

                	
                  /s/Martin Nowakowski

                	 
      	
                  By:

                	 
      
	
                  Name:

                	
                  Martin Nowakowski

                	 
      	
                  Name:

                	 
      
	
                  Title:

                	
                  Mgr. Facilities &
      Administration

                	 
      	
                  Title:

                	 
      

        

        

      

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    EXHIBIT
"F"

    

    ASTON
VIEWS CORPORATE CENTER

    FORM
OF TENANT'S ESTOPPEL CERTIFICATE

    

    

    The undersigned as Tenant under that
certain Office Lease (the "Lease") made and entered into as of ___________,
_______, by and between ASTON VIEWS, LLC, a California limited liability company
as Landlord, and the undersigned as Tenant, for Premises on the _________ Floor
of the Office Building located at _____________________, Carlsbad, California,
__________ certifies as follows:

    

    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
in 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 the current monthly 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.           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 California 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 _____________
199___.

    

    "Tenant"

    

    

    

    a                                                                              

    

    By:                                                          

    

    Its:                                                          

    

    By:                                                          

    

    Its:                                                          

    

    
      
        
          AstonConveraRev7-2.doc
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    ADDENDUM

    

    

    This
ADDENDUM is attached to and made a part of that certain Aston Views Office
Building Lease ('Lease") dated as of July 2, 2001 by and between Aston Views,
LLC, a California limited liability company ("Landlord"), and Convera
Corporation, a Delaware Corporation ("Tenant").

    

    NOTWITHSTANDING
ANYTHING IN THE LEASE TO THE CONTRARY, LANDLORD AND TENANT AGREE AS
FOLLOWS:

    

    38.           Option to Extend Lease
Term.

    

    38.1           Option to Extend Term and Method of
Exercise. Provided Tenant is not then in default under this Lease, Tenant
shall be entitled to extend the Term of this Lease (the "Option Term") for one
consecutive five (5) year period. Such Option Term shall be exercised by Tenant
by delivery of written notice to Landlord at least six (6) months months and no
more than twelve (12) months prior to the then scheduled expiration date of the
Term. The option to extend is personal to Tenant and may not be exercised by any
transferee of Tenant (other
than an affiliate of Tenant), even if Landlord has consented to the
transfer.

    

    38.2           Effect of
Exercise.

    

    (a)           Incorporation of Lease by
Reference. All of the terms, covenants and conditions (including, without
limitation, defined terms) contained in this Lease shall be applicable to each
Option Term in the event of exercise by Tenant provided, however, that the Term
and the Monthly Base Rent shall be modified as provided herein.

    

    (b)           Rent. Subject to adjustment as
hereafter provided, the Monthly Base Rent effective as of the commencement date
of the Option Term shall be the Prevailing Market Rent described
below.  The base
year used to calculate Tenant’s Expense Stop Base will be adjusted to the year
in which the option term commences.

    

    (c)           Prevailing Market Rent. The
"Prevailing Market Rent" shall mean the annual amount per square foot that a
willing, comparable tenant would pay and a willing, comparable landlord of a
comparable building in the immediate area would accept at “arm’s length”, giving
appropriate consideration to the credit of the Tenant, free rent and other
tenant inducements then being offered for comparable space, length of lease
term, size and location of premises being leased, tenant improvement allowances,
if any, and other generally applicable terms and conditions of tenancy for
comparable space.  Further, the base year for operating expenses and
taxes shall be amended to the calendar year in which the renewal term
occurs.  In determining the Prevailing Market Rent, whether for
comparable improved space within the Building or in the business district, the
following factors shall be taken into account:

    

    (i)           The
particular configuration, frontage along a public thoroughfare, signage visible
to the public, parking facilities, and general level of quality of improvements
and location of each comparison building shall be relevant.

    

    (ii)           Charges
for parking, if any, shall be taken into consideration and adjustments shall be
made for variations, if any, in charges paid as additional rent by
Tenants.

    

    (iii)           No
rent which has not been set or adjusted during the twelve month period
immediately preceding the expiration date of the initial term shall be
considered prevailing or current.

    

    If Tenant has timely exercised the
option, Landlord shall notify Tenant in writing of the Proposed new, Monthly
Base Rent determined by Landlord for the Option Term at least ninety (90) days
prior to the Commencement Date of the Option Term. Unless Tenant objects to the
amount determined by Landlord within fifteen (15) days after receipt of such
notice, the amount stated in such notice shall be the new Monthly Base Rent. If
Tenant objects to Landlord's proposal, the new Monthly Base Rent shall be
determined by an MAI Appraiser chosen by Landlord and approved by Tenant. If
Tenant does not disapprove of Landlord's choice of any appraiser by delivery of
written notice of disapproval naming a Tenant's appraiser within five (5) days
after written notice of such choice by Landlord, then Landlord's appraiser shall
be deemed to be approved by Tenant. If Tenant does disapprove of Landlord's
choice of an appraiser within the said five (5) days, then Tenant's notice of
disapproval shall name an MAI Appraiser designated by tenant. Within ten (10)
days after the date of Tenant's notice of disapproval, Landlord's appraiser and
Tenant's appraiser together shall select a neutral third MAI Appraiser. If they
are unable to agree on a third MAI Appraiser within the said ten (10) days, then
upon the application of either party, the third MAI Appraiser shall be
designated by the Presiding Judge of the Superior Court for San Diego County,
California. Landlord's appraiser and Tenant's appraiser each shall determine a
Prevailing Market Rent, to be submitted in writing to Landlord, Tenant and the
third MAI Appraiser within thirty (30) days after the date of Tenant's notice of
disapproval. Within fifteen (15) days after receipt of those two appraisals, the
third MAI Appraiser shall select one of the other of those two appraisals, and
the one so selected shall be and become the Prevailing Market Rent effective as
of the commencement date of the Option Term. The cost of the MAI Appraiser shall
be split equally by Landlord and Tenant, and Landlord and Tenant shall each be
responsible for the fees and costs of the appraiser which it
appoints.  If the Monthly Base Rent shall not have been determined by
the commencement date of the Option Term, then until it is determined, Tenant
shall pay Monthly Base Rent when due during the Option Term determined using
Landlord's proposed Monthly Base Rent, and when the actual adjusted Monthly Base
Rent is determined, Tenant shall pay to Landlord any additional rent due for the
months which are elapsed in the Option Term, or Landlord shall credit any excess
payment for the elapsed months to the next Monthly Base Rent becoming
due.

    

    39.           Utilities / Services / Access /
HVAC.  Access to the Premises shall be 24 hours per day, 365
days per year.  Landlord, at Landlord's sole expense, shall furnish
heating, ventilating and air conditioning Monday through Friday from 7:00 a.m.
to 7:00 p.m. and from 8:00 a.m. to 12:00 p.m. on Saturday, except for New York
Stock Exchange holidays.  After-hours HVAC is available at a cost of
$15.00 per heat pump per hour, not to exceed
$45.00 per hour for the entire Premises.  Said charges shall be
subject to increases based on electrical usage rates, such that these charges
shall never be less than Landlord’s actual costs.

    

    40. Operating
Expenses:  In no instance shall Tenant’s prorata share of the
annual increase in “controllable” Operating Expenses” exceed six percent (6%) of
the amount of the total prior year’s “controllable” Operating Expenses,
non-cumulative.  Landlord will not cap the increase in real property
taxes, insurance, or other “non-controllable” pass-through Operating
Expenses.

    

    41. Right of First
Refusal:  Tenant shall have a right of first refusal to lease
any adjacent space (the “ROFR space”), subject to availability, and subject to
the rights of existing tenants at the time of lease execution. During the term
of the lease, if Landlord receives an acceptable offer from a party other than
the Existing Tenant (which shall mean a written letter of intent or other
written offer from any unaffiliated party, other than the Existing Tenant) to
lease space adjacent to the Premises on terms acceptable to Landlord, Landlord
shall notify Tenant of the terms and conditions of such offer. Tenant shall have
five (5) business days after receipt of such offer to provide written notice to
Landlord that Tenant accepts the terms and conditions proposed
for lease of such entire space as is the subject of such offer. If Landlord does
not receive written notice of Tenant’s acceptance within said five (5) business
day period, then it shall be conclusively deemed an election by Tenant not to
lease such space.

    

    42. Brokerage
Fees:  Landlord shall pay a commission to Irving Hughes in the
amount of four percent (4%) of the aggregate full service gross rental for years
one (1) through five (5) and two percent (2%) for any additional fixed
term.  Such Commission shall be paid by the Landlord fifty percent
(50%) upon mutual Lease execution and fifty percent (50%) upon Commencement of
the Lease.

    

    43. Tenant Allowance / Base Building
Improvements:  Landlord will provide Tenant with an improvement
allowance of Thirty-Five Dollars ($35.00) per rentable square foot for the
entire Premises (“Tenant Allowance”).  The Tenant Allowance shall be
for Tenant’s Work, as defined below, including but not limited to costs of
construction, space planning, design and architectural fees, engineering costs,
signage, permits, telecom and data cabling, and shall not be used to pay for any
Landlord’s work.  In the event Tenant’s Work is more than the Tenant
Allowance (up to an additional $5.00 per rentable square foot), such excess cost
may, at Tenant’s option, either be (a) paid by Landlord, in which case Tenant
shall pay Additional Rent during the Term equal to the payments on a loan in the
amount of the excess costs, amortized over the Term, including interest at 9%
per annum, or (b) paid by Tenant to Landlord within thirty (30) days of
substantial completion.  Notwithstanding provisions to the contrary
contained in the Lease or Work Letter (Exhibit D), Landlord shall furnish the
base building improvements and systems at Landlord’s sole cost and expense
(“Base Building Improvements”), as follows:

    

    A.           The
Building structure will be designed for a minimum floor load of 80 lbs. live
load plus a 20 lb. partition dead load.

    

    B.           The
Building will include a built out and finished interior core and exterior
perimeter walls and all building columns.  The Premises shall include
men's and women's restroom facilities, and drinking fountains per plan (1 per
floor), electrical, telephone, janitorial and mechanical closets.  All
such facilities shall comply with all applicable laws, rules and regulations,
including the Americans with Disabilities Act.

    

    C.           The
floor will be improved with a smoothed trowel finish for installation of
glued-down carpet.  The floor will be finished per plan
specifications.  The roof and perimeter walls may be utilized for
grounded electrical, data communications and telephone wiring installations
within the Premises.

    

    D.           The
Life Safety system will be in accordance with the more stringent of NFPA 101
(Code for Life Safety) and the National Electrical Code or applicable national,
state and local codes, including without limitation accessibility codes, and the
Americans with Disabilities Act regulations, throughout the Building, including
all corridors.  It shall consist of sprinklers, smoke detectors,
internal fire alarm and enunciator system, emergency lighting, self-illuminating
exit signs, strobes, fire hoses, and extinguishers as required by applicable
codes. The sprinkler system will have an approved water flow alarm connection
and tamper-proof detection device, connected to a central station or direct to
the fire/police departments.  It will include distribution of
sprinkler mains throughout the Building. Laterals, uprights and upright heads,
finished heads or "armovers" will be configured to Tenant's space layout and be
paid for out of the Tenant Improvement Allowance.

    

    E.           Electrical
distribution will be provided to the main panel boxes in the main electrical
room on the floor(s) containing the Premises.  The electrical system
shall be sized for 5 watts per rentable square foot demand load for Tenant's
consumption, over and above base building electrical requirements for base
building and lighting and HVAC servicing the Premises.

    

    F.           Landlord
shall warrant that there is sufficient HVAC capacity and distribution capacity
for Tenant's Use.

    

    G.           Telephone
service, as provided by the local utility, will be available to the Building
main telephone room, with sufficient conduit run space provided from the utility
pedestal.  If conduit or sleeves are required by local code, Base
Building Improvements will include necessary conduit/sleeves to distribute data
and telephone cables between floors.

    

    H.           The
Building ground system is in accordance with the N.E.C.  All existing
metal conduits, cabinets, raceways, wire ways and non-current carrying metal
components of the electrical system are grounded to the equipment grounding
system and building steel.

    

    I.           If
applicable, demising walls, including common corridor walls and walls between
tenant suites will be provided.  These walls will include tenant entry
doors from public corridors.  Demising walls will be

    soundproofed
and insulated to the ceiling deck above.

    

    J.           All
common areas, landscaping and roadways necessary for Tenant's access to and
egress from the Building will be completed and comply with all applicable
laws.

    

    K.           Modifications
to the Base Building as a result of the design of Tenant's Work shall not
relieve Landlord of Landlord's obligation to install the Base Building
Improvements.  Cost savings in Base Building Improvements resulting
from Tenant's Work shall be allocated to the Tenant Allowance.

    

    44. Roof Rights / Communications
Systems: Tenant shall have the right to install satellite dishes or
microwave antennae on the roof of the Building, subject to Landlord’s approval
and subject to any governmental agencies’ conditions and approvals. Landlord
preliminarily approves the installation of said communications systems, with the
reservation and understanding that such systems will not be visible from any
portion of the Property, or the adjacent street, and that no roof penetrations
should be required in its installation.  All costs of installation,
including any required penetration and patching shall be at Tenant’s expense,
and equipment specifications and installation plans are subject to Landlord’s
approval.  Tenant agrees to release and indemnify Landlord from any
and all liability, cost, damage, or injury resulting form the installation,
operation, presence, or removal of said communications systems, and agrees to
reimburse Landlord for any cost or liability incurred by Landlord in connection
with the above.

    

    

    
      
        
          AstonConveraRev7-2.doc                                                                    

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    ASTON
VIEWS CORPORATE CENTER

    

    NOTICE
OF LEASE TERM DATES

    

    

    TO:           

    

    

    

    

    

    
      	
               
      

            	
                  Re:

            	
              Office
      Lease dated _____________________, 19_____, between Aston Views, LLC, a
      California limited liability company ("Landlord"), and
      __________________________________ ("Tenant") concerning Suite __________
      on floor(s) ___________ of the Office Building located at
      ______________________, California
  _________________.

            

    

    

    Ladies
and 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 __________________ months
      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 _______________________ percent
      (____________%).

            

    

    

    "Landlord":

    

    (NAME)

    

    By:                                                          

    

    Its:                                                          

    

    Landlord's Federal Taxpayer
Identification No.:

    

    

    

    Agreed to
and Accepted as of "Tenant":

    

    

    

    a                                                          

    

    By:                                                          

    

    Its:                                                          

    

    By:                                                          

    

    Its:ex_10-4.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    AMENDED
AND RESTATED CONVERA CORPORATION

     

    1996
EMPLOYEE STOCK PURCHASE PLAN

     

    Convera
Corporation, f/k/a  Excalibur Technologies Corporation, a Delaware
corporation, adopted this Convera 1996 Employee Stock Purchase Plan (the "Plan")
as of the Effective Date, and is amending the Plan as of the first Option Period
beginning after the date of shareholder approval of the Plan so
amended.  The purposes of this Plan are as follows:

     

    (1)           To
assist employees of the Company in acquiring a stock ownership interest in the
Company pursuant to a plan that is intended to qualify as an "employee stock
purchase plan" under Section 423 of the Internal Revenue Code of 1986, as
amended.

     

    (2)           To
help employees provide for their future security and to encourage them to remain
in the employment of the Company.

     

    

     

    
      	
              1.  

            	
              Definitions

            

    

     

    Whenever
any of the following terms is used in the Plan with the first letter or letters
capitalized, it shall have the following meaning unless the context clearly
indicates to the contrary (such definitions to be equally applicable to both the
singular and plural forms of the terms defined):

     

    
      	
              (a)  

            	
              "Code"
      means the Internal Revenue Code of 1986, as
  amended.

            

    

     

    
      	
              (b)  

            	
              "Committee"
      means the committee appointed to administer the Plan pursuant to paragraph
      10.

            

    

     

    
      	
              (c)  

            	
              "Company"
      means Convera Corporation, a Delaware
  corporation.

            

    

     

    
      	
              (d)  

            	
              Date
      of Exercise" means the date as of which an Option is exercised and the
      Stock subject to that Option is purchased.  With respect to any
      Option, the Dates of Exercise are the last day of each three-month period
      ending January 31, April 30, July 31 and October 31 in which Stock is
      traded in the over-the-counter market during the Option Period in which
      that Option was granted.

            

    

     

    
      	
              (e)  

            	
              "Date
      of Grant" means the date as of which an Option is granted, as set forth in
      paragraph 3(a).

            

    

     

    
      	
              (f)  

            	
              "Effective
      Date" means August 1, 1996.

            

    

     

    
      	
              (g)  

            	
              "Eligible
      Compensation" means total cash compensation received from the Company as
      regular compensation during an Option Period.  By way of
      illustration, and not by way of limitation, Eligible Compensation includes
      regular compensation such as salary, wages, overtime, bonuses,
      commissions, and incentive compensation, but excludes relocation expense
      reimbursements, other reimbursements and income realized as a result of
      participation in any stock option, stock purchase, or similar plan of the
      Company.

            

    

     

    
      	
              (h)  

            	
              "Eligible
      Employee" means any employee of the Company (or any subsidiary designated
      by the board of directors of the Company) (i) is a full time employee or a
      part-time employee whose customary employment is more than twelve hours
      per week and (ii) who does not, immediately after the Option is granted,
      own (within the meaning of Code Sections 423(b)(3) and 424(d)) stock
      possessing five percent or more of the total combined voting power or
      value of all classes of stock of the
Company.

            

    

     

    
      	
              (i)  

            	
              "Option"
      means an option granted under the Plan to an Eligible Employee to purchase
      shares of Stock.

            

    

     

    
      	
              (j)  

            	
              "Option
      Period" means with respect to any Option the period beginning upon the
      Date of Grant and ending on the July 31 or January 31 immediately
      following the Date of Grant, whichever is earlier, or ending on such other
      date as the Committee shall determine.  No Option Period may
      exceed 5 years from the Date of
Grant.

            

    

     

    
      	
              (k)  

            	
              "Option
      Price" with respect to any Option has the meaning set forth in paragraph
      4(b).

            

    

     

    
      	
              (l)  

            	
              "Participant"
      means an Eligible Employee who has complied with the provisions of
      paragraph 3(b).

            

    

     

    
      	
              (m)  

            	
              "Periodic
      Deposit Account" means the account established and maintained by the
      Company to which shall be credited pursuant to paragraph 3(c) amounts
      received from Participants for the purchase of Stock under the
      Plan.

            

    

     

    
      	
              (n)  

            	
              "Plan"
      means this Amended and Restated Convera Corporation 1996 Employee Stock
      Purchase Plan.

            

    

     

    
      	
              (o)  

            	
              "Plan
      Year" means the fiscal year of the Company which begins on February
      1.

            

    

     

    
      	
              (p)  

            	
              "Stock"
      means shares of common stock, par value $.01 per share, of the
      Company.

            

    

     

    
      	
              (q)  

            	
              "Stock
      Purchase Account" means the account established and maintained by the
      Company for each Participant at a securities brokerage firm designated by
      the Company to which Stock purchased upon exercise of an Option under the
      Plan shall be credited pursuant to paragraph
  4(c).

            

    

     

    
      	
              (r)  

            	
              “Subsidiary”
      means any corporation other than the Company in an unbroken chain of
      corporations beginning with the Company if at the time of the granting of
      the Option each of the corporations other than the last corporation, in
      the unbroken chain owns stock possessing 50% or more of the total combined
      voting power of all classes of stock in one of the other corporations in
      such chain.

            

    

     

     

    
      	
              2.  

            	
              Stock
      Subject to Plan

            

    

     

    Subject
to the provisions of paragraph 8 (relating to adjustment upon changes in the
Stock) the Stock which may be sold pursuant  to Options granted under
the Plan shall not exceed in the aggregate 1,250,000 shares, and may be newly
issued shares or treasury shares or shares bought in the market or otherwise for
purposes of the Plan.

     

    

     

    
      	
              3.  

            	
              Grant
      of Options

            

    

     

    
      	
              (a)  

            	
              General
      Statement

            

    

     

    The
Company will grant Options to all Eligible Employees on February 1 and/or August
1 of each Plan Year or on such other date as the Committee shall
designate.  The term of each Option shall end on the last day of the
Option Period with respect to which the Option is granted.  With
respect to each Option Period each Eligible Employee shall be granted an Option
on the Date of Grant for the number of shares of Stock determined by dividing
(i) $25,000 multiplied by the number of (whole or part) calendar years in the
Option Period by (ii) the fair market value of a share of Stock on the Date of
Grant for as many full and  fractional shares of Stock as the
Eligible  Employee may purchase with up to 10% of the Compensation he
or she receives during the Option Period (or during any portion of the Option
Period as the Eligible Employee may elect to participate).

     

    
      	
              (b)  

            	
              Election
      to Participate

            

    

     

    Each
Eligible Employee who elects to participate in the Plan shall communicate to the
Company in accordance with  procedures established by the Committee an
election to  participate in the Plan whereby the Eligible Employee
designates a stated whole percentage equaling at least 1% but no more than 10%
of his or her Eligible Compensation during the Option Period to be deposited
periodically in his or her Periodic Deposit Account under paragraph
3(c).  The cumulative amount deposited in the Periodic Deposit Account
during a Plan Year with respect to any Eligible Employee may not exceed the
limitation stated in paragraph 3(d).  A Participant's election to
participate in the Plan shall continue in effect during the current and
subsequent Option Periods until changed pursuant to paragraph 3(c).

     

    
      	
              (c)  

            	
              Periodic
      Deposit Accounts

            

    

     

    The
Company shall maintain a Periodic Deposit Account for each Participant and shall
credit to that account in U.S. dollars all amounts received under the Plan from
the Participant.  No interest will be paid to any Participant or
credited to his or her Periodic Deposit  Account under the Plan with
respect to such funds.  All amounts credited to a Participant's
Periodic Deposit Account shall be used to purchase Stock
under  paragraph 4(c) and no portion of a Participant's Periodic
Deposit Account shall be refunded to him or her, subject to paragraph
5.

     

    Credits
to an Eligible Employee's Periodic Deposit Account shall be made by payroll
deduction or by other alternate payment arrangements in accordance with rules
and procedures established by the Committee.  An Eligible Employee may
increase, decrease or eliminate the periodic credits to his or her Periodic
Deposit  Account for future periods by filing a new election amount at
any time during an Option Period.  The change shall become effective
in accordance with the Committee's rules and procedures as soon as practicable
after the Company receives the election but the change will not affect the
amounts deposited with respect to Eligible Compensation sooner than the Eligible
Compensation payable with  respect to the next pay period after the
Company receives the authorization.

     

    
      	
              (d)  

            	
              $25,000
      Limitation

            

    

     

    No
Eligible Employee shall be permitted to purchase Stock under the Plan or under
any other employee stock purchase plan of the Company or of any Subsidiary which
is intended to qualify under Code Section 423, at a rate which exceeds $25,000
in fair market value of Stock (determined at the time the Option is granted) for
each calendar year in which any such Option granted to such Participant is
outstanding at any time.

     

     

    
      	
              4.  

            	
              Exercise
      of Options

            

    

     

    
      	
              (a)  

            	
              General
      Statement

            

    

     

    On each
Date of Exercise the entire Periodic Deposit Account of each Participant shall
be used to purchase at the Option Price whole shares of Stock subject to the
Option.  No fractional shares shall be issued.  Each
Participant automatically and without any act on his or her part will be deemed
to have exercised his or her Option on each such Date of Exercise to the extent
that the amounts then credited to the Participant’s Periodic Deposit Account
under the Plan are used to purchase Stock.  Any funds not used to
purchase Stock shall be carried over to purchase Stock in future
periods.

     

    
      	
              (b)  

            	
              Option
      Price Defined

            

    

     

    Starting
with the first Option Period after the date of shareholder approval of the Plan,
the Option Price per share of Stock to be paid by each Participant on each
exercise of his or her Option  shall be an amount in U.S. dollars
equal to the lesser of (i) 85% of the fair market value of a share of Stock as
of the applicable Date of Exercise or (ii) 85% of the fair market value of a
share of Stock as of the Date of Grant.  The fair market value of a
share of Stock as of an applicable Date of Exercise or Date of Grant shall be
the closing sale price of a share of Stock traded in the over-the-counter market
on such date.

     

    
      	
              (c)  

            	
              Stock
      Purchase Accounts; Stock
Certificates

            

    

     

    The
Company shall maintain a Stock Purchase Account for each Participant at a
securities brokerage firm designated by the Company to reflect the Stock
purchased under the Plan by the Participant.  Upon exercise of an
Option by a Participant pursuant to paragraph 4(a), the Company shall credit to
the Participant's Stock Purchase Account the whole or fractional shares of Stock
purchased at that time.

     

    Except as
provided in paragraph 5, certificates with respect to Stock credited to a
Participant's Stock Purchase Account shall be issued only on request by the
Participant for a distribution of whole shares or when necessary to comply with
the transaction requirements outside the United States.  Upon issuance
of such a Stock certificate to a Participant, the Participant's Stock Purchase
Account shall be adjusted to reflect the number of shares of Stock distributed
to the Participant.

     

     

    
      	
              5.  

            	
              Rights
      on Retirement, Death, Termination of
Employment

            

    

     

    If a
Participant retires, dies, or otherwise terminates employment, then to the
extent practicable, no further amounts shall be credited to the Participant's
Periodic Deposit Account from any pay due and owing with respect to the
Participant after such retirement, death, or other termination of
employment.  All amounts credited to such a Participant's Periodic
Deposit Account shall be used on the next Date of Exercise in that Option Period
to purchase whole shares of Stock under paragraph 4.  Such a
Participant's Stock Purchase Account shall be terminated, and stock certificates
with respect to whole shares of Stock and cash with respect to fractional shares
of Stock shall be distributed as soon as practicable after such Date of
Exercise.

     

    Notwithstanding
anything in this Plan to the contrary and except to the extent permitted under
Code Section 423(a), a Participant's Option shall not be exercisable more than
three months after the Participant retires or otherwise ceases to be employed by
the Company.

     

     

    
      	
              6.  

            	
              Restriction
      Upon Assignment

            

    

     

    An Option
granted under the Plan shall not be transferable otherwise than by will or the
laws of descent and distribution, and is exercisable during the Participant's
lifetime only by the Participant.  The Company will not recognize and
shall be under no duty to recognize any assignment or purported assignment by a
Participant, other than by will or the laws of descent and distribution, of the
Participant's interest in the Plan or of his or her Option or of any rights
under his or her Option.

     

     

    
      	
              7.  

            	
              No
      Rights of Stockholder Until Exercise of
Option

            

    

     

    A
Participant shall not be deemed to be a stockholder of the Company, nor have any
rights or privileges of a stockholder, with respect to the number of shares of
Stock subject to an Option.  A Participant shall have the rights and
privileges of a stockholder of the Company when, but not until, the
Participant's Option is exercised pursuant to paragraph 4(a) and the Stock
purchased by the Participant at that time has been credited to the Participant's
Stock Purchase Account.

     

     

    
      	
              8.  

            	
              Changes
      in the Stock; Adjustments of an
Option

            

    

     

    If, while
any Options are outstanding, the outstanding shares of Stock have increased,
decreased, changed into, or been exchanged for a different number or kind of
shares or securities of the Company, or there has been any other change in the
capitalization of the Company, through reorganization, merger, recapitalization,
reclassification, stock split, reverse stock split, spinoff or similar
transaction, appropriate and proportionate adjustments may be made by the
Committee in the number and/or kind of shares which are subject to purchase
under outstanding Options and to the Option Price or prices applicable to such
outstanding Options, including, if the Committee deems appropriate, the
substitution of similar options to purchase shares of another company (with such
other company's consent).  In addition, in any such event, the number
and/or kind of shares which may be offered in the Options shall also be
proportionately adjusted.  No adjustments to outstanding Options shall
be made for dividends paid in the form of stock.

     

     

    
      	
              9.  

            	
              Use
      of Funds; Repurchase of Stock

            

    

     

    All funds
received or held by the Company under the Plan will be included in the general
funds of the Company free of any trust or other restriction and may be used for
any corporate purpose.  The Company shall not be required to
repurchase from any Eligible Employee shares of Stock which such Eligible
Employee acquires under the Plan.

     

     

    
      	
              10.  

            	
              Administration
      by Committee

            

    

     

    
      	
              (a)  

            	
              Appointment
      of Committee

            

    

     

    The board
of directors of the Company, or its delegate, shall appoint a Committee, which
shall be composed of one or more members, to administer the Plan on behalf of
the Company.  Each member of the Committee shall serve for a term
commencing on the date specified by the board of directors of the Company, or
its delegate, and continuing until he or she dies or resigns or is removed from
office by such board of directors, or its delegate.

     

    
      	
              (b)  

            	
              Duties
      and Powers of Committee

            

    

     

    It shall
be the duty of the Committee to conduct the general administration of the Plan
in accordance with its provisions.  The Committee shall have the power
to:

     

    
      	
              (1)  

            	
              determine
      when the initial and subsequent Option Periods will
    commence;

            

    

     

    
      	
              (2)  

            	
              interpret
      the Plan and the Options;

            

    

     

    
      	
              (3)  

            	
              adopt
      such rules for the administration, interpretation, and application of the
      Plan as are consistent with the Plan and Code Section 423;
    and

            

    

     

    
      	
              (4)  

            	
              interpret,
      amend, or revoke any such rules.

            

    

     

    In its
absolute discretion, the board of the directors of the Company may at any time
and from time to time exercise any and all rights and duties of the Committee
under the Plan.  The Committee may delegate any of its
responsibilities under the Plan by designating in writing other persons to carry
out any or all of such responsibilities.

     

    
      	
              (c)  

            	
              Majority
      Rule

            

    

     

    The
Committee shall act by a majority of its members in office.  The
Committee may act either by vote at a meeting or by a memorandum or other
written instrument signed by a majority of the Committee.

     

    
      	
              (d)  

            	
              Compensation;
      Professional Assistance; Good Faith
Actions

            

    

     

    Each
member of the Committee who is an employee of the Company or a Subsidiary shall
receive no additional compensation for his or her services under the
Plan.  Each Committee member who is not an employee of the Company or
a Subsidiary shall receive such compensation for his or her services under the
Plan as may be determined by the board of directors of the Company, or its
delegate.  All expenses and liabilities incurred by members of the
Committee in connection with the administration of the Plan shall be borne by
the Company.  The Committee may employ attorneys, consultants,
accountants, appraisers, brokers or other persons.  The Committee, the
Company, and its officers and directors shall be entitled to rely upon the
advice, opinions, or valuations of any such persons.  All actions
taken and all interpretations and determinations made by the Committee in good
faith shall be final and binding upon all Participants, the Company and all
other interested persons.  No member of the Committee shall be
personally  liable for any action,  determination or
interpretation made in good faith with respect to the Plan or the Options, and
all members of the Committee shall be fully protected by the Company in respect
to any such action, determination or interpretation.

     

     

    
      	
              11.  

            	
              No
      Rights as an Employee

            

    

     

    Nothing
in the Plan nor any Option shall be construed to give any person (including any
Eligible Employee or Participant) the right to remain in the employ of the
Company or to affect the right of the Company to terminate the employment of any
person (including any Eligible Employee or Participant) at any time with or
without cause, to the extent otherwise permitted under law.

     

     

    
      	
              12.  

            	
              Term
      of Plan

            

    

     

    No Option
may be granted during any period of suspension of the Plan or after termination
of the Plan, and in no event may any Option be granted under the Plan after ten
years from the commencement of the initial Option Period.

     

     

    
      	
              13.  

            	
              Amendment
      of the Plan

            

    

     

    The board
of directors of the Company, or its delegate, may amend, suspend, or terminate
the Plan at any time; provided that approval by the vote of the holders of more
than 50% of the outstanding shares of the stock entitled to vote shall be
required to amend the Plan to reduce the Exercise Price or increase the number
of shares of Stock reserved for the Options under the Plan.

     

     

    
      	
              14.  

            	
              Effect
      Upon Other Plans

            

    

     

    The
adoption of the Plan shall not affect any other compensation or incentive plans
in effect for the Company, except to the extent required by
law.  Nothing in this Plan shall be construed to limit the right of
the Company (a) to establish any other forms of incentives or compensation for
employees of the Company or (b) to grant or assume options otherwise than under
this Plan in connection with any proper corporate purpose, including, but not by
way of limitation,  the grant or assumption of options in connection
with the acquisition, by purchase, lease, merger, consolidation or otherwise, of
the business, stock or assets of any corporation, firm or
association.

     

     

    
      	
              15.  

            	
              Notices

            

    

     

    Any
notice to be given under the terms of the Plan to the Company shall be addressed
to the Company in care of the Committee and any notice to be given to the
Eligible Employee shall be addressed to the Eligible Employee at his or her last
address as reflected in the Company's records.  By a notice given
pursuant to this paragraph, either party may hereafter designate a different
address for notices to be given to it or the Eligible Employee.  Any
notice which is required to be given to an Eligible Employee shall, if the
Eligible Employee is then deceased, be given to the Eligible Employee's personal
representative if such representative has previously informed the Company of his
or her status and address by written notice under this paragraph.  Any
notice shall have been deemed duly given when enclosed in a properly sealed
envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in
a post office, branch post office, or other depository regularly maintained by
the United States Postal Services.

     

     

    
      	
              16.  

            	
              Titles

            

    

     

    Titles
are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of the Plan.

     

     

    561264 v02.SF (c12_02!.DOC)

     

    3/24/09
3:06 PM (33594.1001)

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