Document:

Exhibit 10.30

 

FIRST
AMENDMENT TO LEASE

 

THIS FIRST AMENDMENT TO
LEASE (this “Amendment”) is entered into as of the 31st day of March, 2008, by
and between YPI 9801 WESTHEIMER, LLC, a Delaware limited liability company
(“Landlord”) and WILSHIRE STATE BANK, a California state-chartered bank
(“Tenant”).

 

WHEREAS, Landlord, as
successor-in-interest to 9801 Westchase, Ltd., a Texas limited partnership, and
Tenant are parties to that certain Office Lease dated as of March 3, 2005
(the “Lease”) covering approximately 1,096 square feet of rentable area (the
“Premises”) known as Suite 801 on the 8th floor of the building currently
known as Younan Place located at 9801 Westheimer, Houston, Texas 77042 (the
“Building”), as more particularly described therein;

 

WHEREAS, the Landlord is now
the owner of the Building and the landlord under the Lease;

 

WHEREAS, the Term of the
Lease currently expires on March 31, 2008 (the “Prior Expiration Date”),
and Tenant desires to extend the Term for a period of thirty-six (36) months to
expire on March 31, 2011;

 

WHEREAS, subject to the terms and conditions hereof,
Landlord has agreed to extend the Term of the Lease as described herein; and

 

WHEREAS, Landlord and Tenant
desire to amend the Lease to reflect their agreements as to the terms and
conditions governing the extension of the Term of the Lease.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants between the parties
herein contained, Landlord and Tenant hereby agree as follows:

 

1.                                      Term. The Term of
the Lease is hereby extended for a period of thirty-six (36) months to expire
on March 31, 2011, and all references in the Lease to the “Term” and the
“Expiration Date” are hereby amended to reflect such extension. The period from
April 1, 2008 to March 31, 2011 is referred to herein as the
“Extended Term”.

 

2.                                      Monthly Rent. From and
after the date hereof and continuing through the Prior Expiration Date, Tenant
shall continue to pay Monthly Rent and all other sums in accordance with the
terms of the Lease. During the Extended Term, Tenant shall pay Monthly Rent for
the Premises as follows:

 

	
  PERIOD

  	
   

  	
  INSTALLMENTS

  OF MONTHLY RENT

  	
   

  
	
  4/1/08 – 3/31/09

  	
   

  	
  $

  	
  2,100.67

  	
   

  
	
  4/1/09 – 3/31/10

  	
   

  	
  $

  	
  2,146.33

  	
   

  
	
  4/1/10 – 3/31/11

  	
   

  	
  $

  	
  2,192.00

  	
   

  

 

All such Monthly Rent shall be payable in accordance with the terms of
the Lease, as amended hereby.

 

1

 

3.                                       Taxes and
Operating Expenses. During the Extended Term, Tenant shall continue to
pay Tenant’s Pro Rata Share of increases in Taxes and Operating Expenses in
accordance with the terms of the Lease; provided that, effective as of
April 1, 2008, items L  and M of Article 1 of the
Lease, respectively, shall be amended in their entireties to read as follows:

 

	
  L.

  	
  Operating
  Expenses Base:

  	
  The
  actual Operating Expenses for the calendar year 2008, grossed up in
  accordance with the last paragraph of Section A of Article 4 of the
  Lease.

  
	
   

  	
   

  	
   

  
	
  M.

  	
  Tax
  Base:

  	
  The
  actual Taxes for the calendar year 2008.

  

 

4.                                       Landlord’s Notice Address.

 

(a)                                  Landlord’s notice address
set forth in item F of Article 1 of the Lease is hereby amended in its
entirety to the following:

 

YPI 9801 WESTHEIMER, LLC

c/o Younan Properties, Inc.

21700 Oxnard Street, 8th Floor

Woodland Hills, California 91367

Attn: Asset Manager

 

(b)                                 The phrase “9801 Westchase,
Ltd.,” contained in the first sentence of the second paragraph of Section A
of Article 8 of the Lease is hereby deleted.

 

5.                                       Acceptance of
Premises. TENANT ACKNOWLEDGES THAT TENANT CURRENTLY OCCUPIES
THE PREMISES AND TENANT HEREBY ACCEPTS THE PREMISES AND THE BUILDING (INCLUDING
THE SUITABILITY OF THE PREMISES FOR THE USE PERMITTED UNDER THE LEASE) IN “AS
IS” CONDITION WITH ANY AND ALL FAULTS AND LATENT OR PATENT DEFECTS AND WITHOUT
RELYING UPON ANY REPRESENTATION OR WARRANTY (EXPRESS OR IMPLIED) OF LANDLORD OR
ANY REPRESENTATIVE OF LANDLORD. Landlord shall not be required to perform any
leasehold improvements or provide any improvement allowance in connection with
this Amendment.

 

6.                                       Remedies. The following
is hereby inserted at the end of paragraph (b) of Article 20 of the
Lease:

 

In order to regain possession of the Premises
and to deny Tenant access thereto, Landlord or its agent may, at the expense
and liability of the Tenant, alter or change any or all locks or other security
devices controlling access to the Premises without posting or giving notice of
any kind to Tenant and Landlord shall have no obligation to provide Tenant a
key to new locks installed in the Premises or grant Tenant access to the
Premises.

 

7.                                       Miscellaneous. Exhibit C
to the Lease and Exhibit F to the Lease are hereby deleted in their
entireties. Notwithstanding anything to the contrary contained in the Lease,
upon the expiration or earlier termination of the Term of the Lease, as
extended hereby, Tenant shall

 

2

 

remove all phone and data cabling and related
equipment that is installed in the Building after the date hereof by or for the
benefit of Tenant.

 

8.                                      Calculation of
Charges. Landlord and Tenant agree that each provision of the Lease, as
amended hereby, for determining charges, amounts, and additional rent payments
by Tenant (including without limitation, Articles 3 and 4 of the Lease) is
commercially reasonable, and as to each such charge or amount, constitutes a
“method by which the charge is to be computed” for purposes of Section 93.012
(Assessment of Charges) of the Texas Property Code, as such section now exists
or as it may be hereafter amended or succeeded.

 

9.                                      Tax Protest
Waiver. NOTWITHSTANDING ANYTHING TO THE
CONTRARY CONTAINED IN THE LEASE, TENANT HEREBY WAIVES ALL RIGHTS TO PROTEST THE
APPRAISED VALUE OF THE BUILDING OR LAND ON WHICH THE BUILDING IS LOCATED OR TO
APPEAL THE SAME AND ALL RIGHTS TO RECEIVE NOTICES OF REAPPRAISALS AS SET FORTH
IN SECTIONS 41.413 AND 42.015 OF THE TEXAS TAX CODE.

 

10.                                DTPA Waiver. TENANT HEREBY WAIVES ALL ITS RIGHTS UNDER THE TEXAS
DECEPTIVE TRADE PRACTICES - CONSUMER PROTECTION ACT, SECTION 17.41 ET. SEQ.
OF THE TEXAS BUSINESS AND COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL
RIGHTS AND PROTECTIONS. AFTER CONSULTATION WITH AN ATTORNEY OF TENANT’S OWN
SELECTION, TENANT VOLUNTARILY CONSENTS TO THIS WAIVER.

 

11.                                Express
Negligence.

 

(a)                                 Section B of Article 8
of the Lease is hereby deleted in its entirety and the following is substituted
in lieu thereof:

 

Landlord and Tenant each agree that neither Landlord
nor Tenant will have any claim against the other for any loss, damage or injury
which is covered by insurance carried by either party (or that would have been
covered had the insurance required by the Lease been carried), NOTWITHSTANDING THE NEGLIGENCE OF EITHER PARTY IN
CAUSING THE LOSS. This release shall be valid only if the insurance
policy in question permits waiver of subrogation or if the insurer agrees in
writing that such waiver of subrogation will not affect coverage under said
policy. Each party agrees to use its best efforts to obtain such an agreement
from its insurer if the policy does not expressly permit a waiver of
subrogation.

 

(b)                                Tenant acknowledges and
agrees that the waivers set forth in Section C of Article 8 of the
Lease will apply EVEN IF THE INJURY OR DAMAGE
DESCRIBED IN SUCH SECTION IS CAUSED BY THE NEGLIGENCE (BUT NOT THE WILLFUL
MISCONDUCT) OF LANDLORD.

 

(c)                                 Tenant acknowledges and
agrees that the waivers and indemnification set forth in Article 9 of the
Lease will apply EVEN IF THE INJURY, LOSS,
COSTS, EXPENSES, CLAIMS OR DAMAGE DESCRIBED IN SUCH SECTION IS CAUSED BY
THE

 

3

 

NEGLIGENCE (BUT NOT THE GROSS
NEGLIGENCE, FRAUD OR WILLFUL MISCONDUCT) OF LANDLORD.

 

12.                                Brokers. Tenant
warrants that it has had no dealings with any real estate broker or agent in
connection with the negotiation of this Amendment other than PM Realty Group
(“Landlord’s Broker”), and that it knows of no other real estate brokers or
agents who are or might be entitled to a commission in connection with this
Amendment. Landlord agrees to pay a commission to Landlord’s Broker in
connection with this Amendment pursuant to a separate written agreement between
Landlord and such broker. Tenant agrees to indemnify and hold harmless Landlord
from and against any liability or claim arising in respect to any brokers or
agents claiming a commission by, through, or under Tenant in connection with
this Amendment.

 

13.                                Defined Terms. All terms not
otherwise defined herein shall have the same meaning assigned to them in the
Lease.

 

14.                                Ratification of
Lease. Except as amended hereby, the Lease shall remain in full force and
effect in accordance with its terms and is hereby ratified. In the event of a
conflict between the Lease and this Amendment, this Amendment shall control. In
no event shall Landlord be liable for any consequential, special or punitive
damages as a result of any breach of or default under the Lease (as amended
hereby) by Landlord. TENANT HEREBY WAIVES ITS
STATUTORY LIEN UNDER SECTION 91.004(b) OF THE TEXAS PROPERTY CODE.

 

15.                                No
Representations. Landlord and Landlord’s agents have made no
representations or promises, express or implied, in connection with this
Amendment except as expressly set forth herein.

 

16.                                Entire
Agreement. This Amendment, together with the Lease, contains
all of the agreements of the parties hereto with respect to any matter covered
or mentioned in this Amendment or the Lease, and no prior agreement,
understanding or representation pertaining to any such matter shall be
effective for any purpose.

 

17.                                Severability. A
determination that any provision of this Amendment is unenforceable or invalid
shall not affect the enforceability or validity of any other provision hereof
and any determination that the application of any provision of this Amendment
to any person or circumstance is illegal or unenforceable shall not affect the
enforceability or validity of such provision as it may apply to any other
persons or circumstances.

 

18.                                Governing Law. This
Amendment shall be governed by the laws of the State of Texas.

 

19.                                Section Headings. The section
headings contained in this Amendment are for convenience only and shall in no
way enlarge or limit the scope or meaning of the various and several sections
hereof.

 

20.                                Successors and
Assigns. The terms and provisions hereof shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns.

 

21.                                Submission of
Amendment Not Offer. The submission by Landlord to Tenant of this
Amendment for Tenant’s consideration shall have no binding force or effect,
shall not constitute an option, and shall not confer any rights upon Tenant or impose
any obligations upon Landlord

 

4

 

WESTCHASE
BANK BUILDING

 

OFFICE
LEASE

 

BETWEEN

 

9801
WESTCHASE, LTD.

 

AND

 

WILSHIRE
STATE BANK

 

 

	
  1.

  	
  BASIC PROVISIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  PREMISES, TERM AND
  COMMENCEMENT DATE

  	
  2

  
	
   

  	
   

  	
   

  
	
  3.

  	
  RENT

  	
  2

  
	
   

  	
   

  	
   

  
	
  4.

  	
  TAXES AND OPERATING
  EXPENSES

  	
  3

  
	
   

  	
   

  	
   

  
	
  5.

  	
  LANDLORD’S WORK,
  TENANT’S WORK, ALTERATIONS AND ADDITIONS

  	
  4

  
	
   

  	
   

  	
   

  
	
  6.

  	
  USE

  	
  5

  
	
   

  	
   

  	
   

  
	
  7.

  	
  SERVICES

  	
  5

  
	
   

  	
   

  	
   

  
	
  8.

  	
  INSURANCE

  	
  7

  
	
   

  	
   

  	
   

  
	
  9.

  	
  INDEMNIFICATION

  	
  7

  
	
   

  	
   

  	
   

  
	
  10.

  	
  CASUALTY DAMAGE

  	
  8

  
	
   

  	
   

  	
   

  
	
  11.

  	
  CONDEMNATION

  	
  8

  
	
   

  	
   

  	
   

  
	
  12.

  	
  REPAIR AND MAINTENANCE

  	
  8

  
	
   

  	
   

  	
   

  
	
  13.

  	
  INSPECTION OF PREMISES

  	
  9

  
	
   

  	
   

  	
   

  
	
  14.

  	
  SURRENDER OF PREMISES

  	
  9

  
	
   

  	
   

  	
   

  
	
  15.

  	
  HOLDING OVER

  	
  10

  
	
   

  	
   

  	
   

  
	
  16.

  	
  SUBLETTING AND
  ASSIGNMENT

  	
  10

  
	
   

  	
   

  	
   

  
	
  17.

  	
  SUBORDINATION,
  ATTORNMENT AND MORTGAGEE PROTECTION

  	
  11

  
	
   

  	
   

  	
   

  
	
  18.

  	
  ESTOPPEL CERTIFICATE

  	
  11

  
	
   

  	
   

  	
   

  
	
  19.

  	
  DEFAULTS

  	
  11

  
	
   

  	
   

  	
   

  
	
  20.

  	
  REMEDIES OF LANDLORD

  	
  12

  
	
   

  	
   

  	
   

  
	
  21.

  	
  QUIET ENJOYMENT

  	
  13

  
	
   

  	
   

  	
   

  
	
  22.

  	
  ACCORD AND SATISFACTION

  	
  13

  
	
   

  	
   

  	
   

  
	
  23.

  	
  SECURITY DEPOSIT

  	
  13

  
	
   

  	
   

  	
   

  
	
  24.

  	
  BROKERAGE COMMISSION

  	
  14

  
	
   

  	
   

  	
   

  
	
  25.

  	
  FORCE MAJEURE

  	
  14

  
	
   

  	
   

  	
   

  
	
  26.

  	
  PARKING

  	
  14

  
	
   

  	
   

  	
   

  
	
  27.

  	
  HAZARDOUS MATERIALS

  	
  15

  
	
   

  	
   

  	
   

  
	
  28.

  	
  ADDITIONAL RIGHTS
  RESERVED BY LANDLORD

  	
  16

  
	
   

  	
   

  	
   

  
	
  29.

  	
  DEFINED TERMS

  	
  17

  
	
   

  	
   

  	
   

  
	
  30.

  	
  MISCELLANEOUS
  PROVISIONS

  	
  19

  
	
   

  	
   

  	
   

  
	
  31.

  	
  SPECIAL PROVISIONS

  	
  21

  

 

EXHIBITS

 

	
  Exhibit A

  	
   

  	
  Plan Showing Premises

  
	
  Exhibit B

  	
   

  	
  Work Letter Agreement

  
	
  Exhibit C

  	
   

  	
  Termination Option

  
	
  Exhibit D

  	
   

  	
  Building’s
  Rules and Regulations; Janitorial Specifications

  
	
  Exhibit E

  	
   

  	
  Commencement Date
  Confirmation

  
	
  Exhibit F

  	
   

  	
  Renewal Option

  

 

 

OFFICE LEASE

 

THIS  LEASE,  made  as  of  this  3rd day of March,  2005,  by  and  between 9801 WESTCHASE, LTD., a Texas limited
partnership (“Landlord”), having an address in care of PM Realty Group, L.P.,
9801 Westheimer, Suite 240, Houston, Texas 77042 and WILSHIRE STATE BANK (“Tenant”) having its
principal office at 3200 Wilshire Boulevard, Los Angeles, California 90010-1302.

 

ARTICLE 1.
BASIC PROVISIONS

 

	
  A.

  	
  Tenant’s Trade Name:

  	
  Wilshire
  State Bank

  
	
   

  	
   

  	
   

  
	
  B.

  	
  Tenant’s
  Address:

  	
  9801
  Westheimer, Suite 801, Houston, Texas 77042

  
	
   

  	
   

  	
   

  
	
  C.

  	
  Office Building Name:

  	
  Westchase
  Bank Building

  
	
   

  	
  Address:

  	
  9801
  Westheimer, Houston, Texas 77042

  
	
   

  	
   

  	
   

  
	
  D.

  	
  Premises: Suite/Unit No.:

  	
  801

  
	
   

  	
   

  	
   

  
	
   

  	
  Square Feet (Rentable):

  	
  1,096
  NRA

  
	
   

  	
   

  	
   

  
	
  E.

  	
  Landlord:

  	
  9801
  Westchase, Ltd.

  
	
   

  	
   

  	
   

  
	
  F.

  	
  Landlord’s Address:

  	
  In
  care of PM Realty Group, L.P.

  
	
   

  	
   

  	
  9801
  Westheimer, Suite 240, Houston, Texas 77042

  
	
   

  	
   

  	
   

  
	
  G.

  	
  Building

  	
  PM Realty Group, L.P.

  
	
   

  	
  Manager/Address:

  	
  9801
  Westheimer, Suite 240, Houston, Texas 77042

  
	
   

  	
   

  	
   

  
	
  H.

  	
  Commencement Date:

  	
  March 1st, 2005

  
	
   

  	
   

  	
  (which
  date is subject to acceleration as provided in Article 2 and to
  extension as provided in Paragraph 5 of Exhibit B)

  
	
   

  	
   

  	
   

  
	
  I.

  	
  Expiration Date:

  	
  The
  day immediately preceding the 36th month anniversary of the Commencement Date,
  but if such day is not the last day of a month, then the last day of the
  month during which such date occurs.

  
	
   

  	
   

  	
   

  
	
  J.

  	
  Security Deposit:

  	
  $1,552.67

  
	
   

  	
   

  	
   

  
	
  K.

  	
  Monthly Rent:

  	
  Month

  	
   

  	
  Monthly

  
	
   

  	
   

  	
  of Term

  	
   

  	
  Rent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1-36

  	
   

  	
  $1,552.67/$17.00

  
	
   

  	
   

  	
   

  
	
  L.

  	
  Operating Expenses Base:

  	
  The
  actual Operating Expenses for the calendar year 2005.

  
	
   

  	
   

  	
   

  
	
  M.

  	
  Tax Base:

  	
  The
  actual Taxes for the calendar year 2005.

  
	
   

  	
   

  	
   

  
	
  N.

  	
  Tenant’s Pro Rata Share:

  	
  .54%.
  Tenant’s Pro Rata Share shall be determined by and adjusted by Landlord from
  time to time, by dividing the Tenant’s Rentable Square Feet of the Premises
  by the rentable area of the Building and multiplying the resulting quotient,
  to the second decimal place, by one hundred.

  
	
   

  	
   

  	
   

  
	
  O.

  	
  Normal Business Hours

  	
  Monday
  through Friday: 7:00 a.m. to 6:00 p.m.

  

 

 

	
   

  	
  of
  Building:

  	
  Saturday: 8:00 a.m.
  to 1:00 p.m.

  Sunday:  Closed

  
	
   

  	
   

  	
   

  
	
  P.

  	
  Brokers:

  	
  For Landlord: PM Realty
  Group, L.P.

  
	
   

  	
   

  	
  For Tenant:    N/A

  
	
   

  	
   

  	
   

  
	
  Q.

  	
  Parking
  Fee:

  	
  Subject to the terms of
  Article 26, Tenant shall have the right to use on a “first come, first
  served” basis, up to four (4) unreserved parking spaces within the
  attached garage for a Parking Fee equal to $0 per unreserved space per month
  and one (1) reserved space equal to $50.00 per month (plus applicable
  sales tax).

  

 

The foregoing
provisions shall be interpreted and applied in accordance with the other
provisions of this Lease set forth below. The capitalized terms, and the terms defined
in Article 29, shall have the meanings set forth herein or therein (unless
otherwise modified in this Lease) when used as capitalized terms in other
provisions of this Lease.

 

ARTICLE 2. PREMISES, TERM AND
COMMENCEMENT DATE

 

Landlord hereby leases and
demises to Tenant and Tenant hereby takes and leases from Landlord that certain
space identified in Article 1 and shown on a plan attached hereto as Exhibit A
(the “Premises”) for a term (the “Term”) commencing on the Commencement Date
and ending on the Expiration Date set forth in Article 1, unless sooner
terminated as provided herein, subject to the provisions herein contained. The
Commencement Date set forth in Article 1 shall be advanced to such earlier
date as Tenant commences occupancy of the Premises for the conduct of its
business. The Commencement Date is subject to extension as is provided in
Paragraph 4 of Exhibit B attached hereto. The actual Commencement Date and
the actual Expiration Date shall be confirmed by execution of the Commencement Date
Confirmation in the form as set forth in Exhibit E. If Landlord delays
delivering possession of the Premises or substantial completion of any
Landlord’s Work under Exhibit B, this Lease shall not be void or voidable,
and Landlord shall have no liability for loss or damage resulting therefrom.

 

ARTICLE 3. RENT

 

A.                                    Monthly Rent. Tenant shall pay Monthly Rent in advance
on or before the first day of each month of the Term. If the Term shall
commence on a day other than the first day of a month, the Monthly Rent for the
first partial month shall be prorated on a per diem basis. Upon its execution
of this Lease, Tenant shall pay the installment of Monthly Rent owing for the
first full month of the Term and a prorated Monthly Rent for any partial month
which may precede it.

 

B.                                    Additional Rent. All costs and expenses which Tenant
assumes or agrees to pay and any other sum payable by Tenant pursuant to this
Lease, including, without limitation, Tenant’s Pro Rata Share of increases in Taxes
and Operating Expenses under Article 4, shall be deemed Additional Rent.

 

C.                                    Rent. Monthly Rent, Additional Rent, Taxes and
Operating Expenses and any other amounts which Tenant is or becomes obligated
to pay Landlord under this Lease are herein referred to collectively as “Rent”,
and all remedies applicable to the nonpayment of Rent shall be applicable
thereto. Landlord may apply payments received from Tenant to any obligations of
Tenant then accrued, without regard to such obligations as may be designated by
Tenant.

 

D.                                    Place of Payment, Late
Charge, Default Interest. Rent and other charges required to be paid under this Lease,
no matter how described, shall be paid by Tenant to Landlord at the Building
Manager’s address listed in Article 1, or to such other person and/or address
as Landlord may designate in writing, without any prior notice or demand
therefor and without deduction or set-off or counterclaim and without relief
from any valuation or appraisement Laws. In the event Tenant fails to pay Rent
due under this Lease within ten (10) days of due date of

 

2

 

said Rent, Tenant
shall pay to Landlord a late charge of ten percent (10%) on the amount overdue.
Any Rent not paid when due shall also bear interest at the Default Rate.

 

ARTICLE 4. TAXES AND OPERATING
EXPENSES

 

A.                                    Payment of Taxes and
Operating Expenses. It
is agreed that during each Lease Year beginning with the first month of 2006
and each month thereafter during the Term, or any extension thereof, Tenant
shall pay to Landlord as Additional Rent, at the same time as Monthly Rent is
paid, an amount equal to one-twelfth (1/12) of Landlord’s estimate (as
determined by Landlord in its sole discretion) of Tenant’s Pro Rata Share of
any projected increase in the Taxes or Operating Expenses for the particular
Lease Year in excess of the Tax Base or Operating Expenses Base, as the case
may be (the “Estimated Escalation Increase”). A final adjustment (the
“Escalation Reconciliation”) shall be made between the parties as soon as
practicable following the end of each Lease Year comparing the actual increase
in Tenant’s Pro Rata Share of Taxes or Operating Expenses in excess of the Tax
Base or the Operating Expenses Base, as the case may be, to the Estimated
Escalation Increase.

 

As soon as practicable
following the end of each Lease Year, Landlord shall submit to Tenant a
statement setting forth the Estimated Escalation Increase for the following
Lease Year. Beginning with said statement for the second Lease Year, it shall
also set forth the Escalation Reconciliation for the Lease Year just completed.
To the extent that the Escalation Reconciliation is different from the
Estimated Escalation Increase upon which Tenant paid Rent during the Lease Year
just completed, Tenant shall pay Landlord the difference in cash within thirty
(30) days following receipt by Tenant of such statement from Landlord, or
receive a credit on future Rent owing hereunder (or cash if there is no future
Rent owing hereunder) as the case may be. Until Tenant receives such statement,
Additional Rent for the new Lease Year shall continue to be paid at the rate
being paid for the particular Lease Year just completed, but Tenant shall
commence payment to Landlord of the monthly installment of Additional Rent on the
basis of said statement beginning on the first day of the month following the
month in which Tenant receives such statement. In addition to the above, if,
during any particular Lease Year, there is a change in the information on which
Landlord based the estimate upon which Tenant is then making its payment of
Estimated Escalation Increase so that such Estimated Escalation Increase
furnished to Tenant is no longer accurate, Landlord shall be permitted to
revise such Estimated Escalation Increase by notifying Tenant, and there shall
be such adjustments made in the Additional Rent on the first day of the month
following the serving of such statement on Tenant as shall be necessary by
either increasing or decreasing, as the case may be, the amount of Additional
Rent then being paid by Tenant for the balance of the Lease Year (but in no
event shall any such decrease result in a reduction of Monthly Rent).
Landlord’s and Tenant’s responsibilities with respect to the Additional Rent
described herein shall survive the expiration or early termination of the Term.

 

If the Building is
not fully occupied during any particular Lease Year, Landlord may adjust those
Operating Expenses which are affected by Building occupancy for the particular
Lease Year, or portion thereof, as the case may be, to reflect an occupancy of
not less than ninety-five percent (95%) of the rentable area of the Building.

 

B.                                    Disputes Over Taxes or
Operating Expenses. If
Tenant disputes the amount of an Escalation Reconciliation or an Estimated Escalation
Increase, Tenant shall give Landlord written notice of such dispute within thirty
(30) days after Landlord advises Tenant of such adjustment. Tenant’s failure to
give such notice shall constitute a waiver of its right to dispute the amounts
so determined. If Tenant timely objects, Tenant shall have the right to engage
its own accountants (“Tenant’s Accountants”) for the purpose of verifying the
accuracy of the Escalation Reconciliation statement in dispute, or the
reasonableness of the Estimated Escalation statement in dispute. If Tenant’s
Accountants determine that an error has been made, Landlord and Tenant’s
Accountants shall endeavor to agree upon the matter, failing which Landlord and
Tenant’s Accountants shall jointly select an independent certified public
accounting firm (the “Independent Accountant”) which firm shall conclusively determine
whether the Escalation Reconciliation is accurate or whether the Estimated
Escalation Increase is reasonable, and if not, what amount is accurate or
reasonable, as the case may be. Both parties shall be bound by such
determination. If Tenant’s Accountants do not participate in choosing the
Independent Accountant within 20 days after written notice by Landlord, then
Landlord’s determination of the accuracy of the Escalation Reconciliation statement
or the reasonableness of the Estimated Escalation Increase Statement, as the
case may be, shall be conclusive and Tenant shall be bound thereby. All costs
incurred by Tenant in obtaining Tenant’s Accountants and the cost of the
Independent Accountant shall be paid by Tenant unless Tenant’s Accountants
disclose an error, acknowledged by Landlord (or found to have conclusively
occurred by the Independent Accountant), of more than

 

3

 

ten percent (10%) in the
computation of the total amount of Taxes or Operating Expenses as set forth in
the statement submitted by Landlord with respect to the matter in dispute; in
which event Landlord shall pay the reasonable costs incurred by Tenant in
obtaining such audits. Tenant shall continue to timely pay Landlord the amount
of the prior year’s Additional Rent determined to be incorrect as aforesaid
until the parties have concurred as to the appropriate Additional Rent or have
deemed to be bound by the determination of the Independent Accountant in
accordance with the preceding terms. Landlord’s delay in submitting any
statement contemplated herein for any Lease Year shall not affect the
provisions of this paragraph, nor constitute a waiver of Landlord’s rights as
set forth herein for said Lease Year or any subsequent Lease Years during the
Term or any extensions thereof.

 

ARTICLE 5. LANDLORD’S WORK, TENANT’S
WORK, ALTERATIONS AND ADDITIONS

 

A.                                    Landlord’s Work. Landlord shall construct the Premises in
accordance with Landlord’s obligations as set forth in the work letter
agreement attached hereto as Exhibit B, and hereinafter referred to as
“Landlord’s Work.”

 

B.                                    Tenant’s Work. Tenant, at its sole cost and expense,
shall perform and complete all improvements to the Premises (other than
Landlord’s Work) which Tenant desires to perform for Tenant’s initial occupancy
(herein called “Tenant’s Work”). Tenant shall complete all of Tenant’s Work in
good and workmanlike manner, fully paid for and free from liens, in accordance
with the plans and specifications approved by Landlord. Subject to Paragraph 7
of Exhibit B, Tenant shall also have the right prior to the scheduled
Commencement Date to come onto the Premises to install its fixtures and prepare
the Premises for the operation of Tenant’s business. Notwithstanding the fact
that foregoing activities by Tenant may occur prior to the scheduled
Commencement Date, Tenant agrees that all of Tenant’s obligations provided for
in this Lease shall apply during such period with the exception of any
obligation to pay Rent.

 

C.                                    Alterations. Except as provided in the immediately
preceding subparagraph B, Tenant shall make no alterations or additions to the
Premises without the prior written consent of the Landlord, which consent
Landlord may grant or withhold in its sole discretion. If Landlord performs
such alterations, additions or Tenant’s Work, as specified in Article 5
herein, Tenant shall pay Landlord, as Additional Rent, the cost thereof plus
ten percent (10%) as reimbursement for Landlord’s overhead. Each payment shall
be made to Landlord within ten (10) days after receipt of an invoice from
Landlord. This provision shall include, but not be limited to, any and all
additional work requested by Tenant to be performed by Landlord.

 

D.                                    Liens. Tenant shall give Landlord at least ten (10) days’
prior written notice (or such additional time as may be necessary under
applicable Laws) of the commencement of any Tenant’s Work, to afford Landlord
the opportunity of posting and recording notices of non-responsibility. Tenant
will not cause or permit any mechanic’s, materialman’s or similar liens or
encumbrances to be filed or exist against the Premises or the Building or
Tenant’s interest in this Lease in connection with work done under this Article or
in connection with any other work performed by Tenant. Tenant shall remove any
such lien or encumbrance by bond or otherwise within twenty (20) days from the
date of their existence. If Tenant fails to do so, Landlord may pay the amount
or take such other action as Landlord deems necessary to remove any such lien
or encumbrance, without being responsible to investigate the validity thereof.
The amounts so paid and costs incurred by Landlord shall be deemed Additional
Rent under this Lease and payable in full upon demand.

 

E.                                      Compliance with ADA. Notwithstanding anything to the contrary
contained in this Lease, Landlord and Tenant agree that responsibility for
compliance with the Americans With Disabilities Act of 1990 (the “ADA”) shall be
allocated as follows: (i) Landlord shall be responsible for compliance
with the provisions of Title III of the ADA for all Common Areas, including
exterior and interior areas of the Building not included within the Premises or
the premises of other tenants; (ii) Landlord shall be responsible for
compliance with the provisions of Title III of the ADA for any construction,
renovations, alterations and repairs made within the Premises if such
construction, renovations, alterations or repairs are made by Landlord for the
purpose of improving the Building generally or are done as Landlord’s Work and
the plans and specifications for the Landlord’s Work were prepared by
Landlord’s architect or space planner and were not provided by Tenant’s
architect or space planner; (iii) Tenant shall be responsible for
compliance with the provisions of Title III of the ADA for any construction,
renovations, alterations and repairs made within the Premises if such
construction, renovations, alterations and repairs are made by Tenant, its
employees, agents or contractors, at the direction of Tenant or done pursuant
to plans and specifications prepared or provided by Tenant or Tenant’s
architect or space planner.

 

4

 

ARTICLE 6. USE

 

A.                                    Use. Tenant shall use the Premises for general
office purposes, and for no other purpose whatsoever, subject to and in
compliance with all other provisions of this Lease, including without
limitation the Building’s Rules and Regulations attached as Exhibit D
hereto. Tenant and its invitees shall also have the non-exclusive right, along
with other tenants of the Building and others authorized by Landlord, to use
the Common Areas subject to such rules and regulations as Landlord in its
discretion may impose from time to time.

 

B.                                    Restrictions. Tenant shall not at any time use or
occupy, or suffer or permit anyone to use or occupy, the Premises or do or
permit anything to be done in the Premises which: (a) causes or is liable
to cause injury to persons, to the Building or its equipment, facilities or
systems; (b) impairs the character, reputation or appearance of the Building
as a first class office building; (c) impairs the proper and economic
maintenance, operation and repair of the Building or its equipment, facilities
or systems; or (d) annoys or inconveniences other tenants or occupants of
the Building.

 

C.                                    Compliance with Laws. Tenant shall keep and maintain the
Premises, its use thereof and its business in compliance with all Laws. Tenant
shall comply with all Laws relating to the Premises and Tenant’s use thereof, including
without limitation, Laws requiring the Premises to be closed on Sundays or any
other days or hours and Laws in connection with the health, safety and building
codes, and any permit or license requirements. Landlord makes no representation
that the Premises are suitable for Tenant’s purposes.

 

ARTICLE 7. SERVICES

 

A.                                     Climate Control. Landlord shall furnish heat or air
conditioning to the Premises during Normal Business Hours of Building as set
forth in Article 1 as required in Landlord’s reasonable judgment for the
comfortable use and occupation of the Premises. If Tenant requires heat or air
conditioning at any other time, Landlord shall use reasonable efforts to
furnish such service upon reasonable notice from Tenant, and Tenant shall pay
all of Landlord’s charges therefor on demand. Landlord’s current charge for
non-Normal Business Hours of operation is fifty dollars ($50.00) per hour per
floor.

 

The performance by
Landlord of its obligations under this Article is subject to Tenant’s
compliance with the terms of this Lease including any connected electrical load
established by Landlord. Tenant shall not use the Premises or any part thereof
in a manner exceeding the heating, ventilating or air-conditioning (“HVAC”)
design conditions (including any occupancy or connected electrical load
conditions), including the rearrangement of partitioning which may interfere
with the normal operation of the HVAC equipment, or the use of computer or data
processing machines or other machines or equipment in excess of that normally
required for a standard office use of the Premises. If any such use requires
changes in the HVAC or plumbing systems or controls servicing the Premises or
portions thereof in order to provide comfortable occupancy, such changes may be
made by Landlord at Tenant’s expense and Tenant agrees to promptly pay any such
amount to Landlord as Additional Rent.

 

B.                                     Elevator Service. If the Building is equipped with
elevators, Landlord, during Normal Business Hours of Building, shall furnish
elevator service to Tenant to be used in common with others. At least one
elevator shall remain in service during all other hours. Landlord may designate
a specific elevator for use as a service elevator.

 

C.                                     Janitorial Services. Landlord shall provide janitorial and
cleaning services to the Premises, substantially as described in Exhibit D
attached hereto. Tenant shall pay to Landlord on demand the reasonable costs
incurred by Landlord for (i) any cleaning of the Premises in excess of the
specifications in Exhibit D for any reason including, without limitation,
cleaning required because of (A) misuse or neglect on the part of Tenant
or Tenant’s agents, contractors, invitees, employees and customers, (B) the
use of portions of the Premises for special purposes requiring greater or more
difficult cleaning work than office areas, (C) interior glass partitions
or unusual quantities of interior glass surfaces, and (D) non-building
standard materials or finishes installed by Tenant or at its request; and (ii) removal
from the Premises of any refuse and rubbish of Tenant in excess of that
ordinarily accumulated in general office occupancy or at times other than
Landlord’s standard cleaning times.

 

5

 

D.                                     Water and Electricity. Landlord shall make available domestic
water in reasonable quantities to the common areas of the Building (and to the
Premises if so designated in Exhibit B) and cause electric service sufficient
for lighting the Premises and for the operation of Ordinary Office Equipment to
be delivered to the Premises. “Ordinary Office Equipment” shall mean office
equipment wired for 120 volt electric service and rated and using less than 6
amperes or 750 watts of electric current or other office equipment approved by
Landlord in writing. Landlord shall have the exclusive right to make any
replacement of lamps, fluorescent tubes and lamp ballasts in the Premises.
Landlord may adopt a system of relamping and ballast replacement periodically
on a group basis in accordance with good management practice. Tenant’s use of
electric energy in the Premises shall not at any time exceed the capacity of
any of the risers, piping, electrical conductors and other equipment in or
serving the Premises. In order to insure that such capacity is not exceeded and
to avert any possible adverse effect upon the Building’s electric system,
Tenant shall not, without Landlord’s prior written consent in each instance,
connect appliances or heavy duty equipment, other than ordinary office
equipment, to the Building’s electric system or make any alteration or addition
to the Building’s electric system. Should Landlord grant its consent in
writing, all additional risers, piping and electrical conductors or other
equipment therefor shall be provided by Landlord and the cost thereof shall be
paid by Tenant within 10 days of Landlord’s demand therefor. As a condition to
granting such consent, Landlord may require Tenant to agree to an increase in
Monthly Rent to offset the expected cost to Landlord of such additional
service, that is, the cost of the additional electric energy to be made
available to Tenant based upon the estimated additional capacity of such
additional risers, piping and electrical conductors or other equipment. If
Landlord and Tenant cannot agree thereon, such cost shall be determined by an
independent electrical engineer, to be selected by Landlord and paid equally by
both parties.

 

E.                                       Separate Meters. If the Premises are separately metered
for any utility, Tenant shall pay a utility charge to Landlord (or directly to
the utility company, if possible) based upon the Tenant’s actual consumption as
measured by the meter. Landlord also reserves the right to install separate meters
for the Premises to register the usage of all or any one of the utilities and
in such event Tenant shall pay for the cost of utility usage as metered to the
Premises and which is in excess of the usage reasonably anticipated by Landlord
for normal office usage of the Premises. Tenant shall reimburse Landlord for
the cost of installation of meters if Tenant’s actual usage exceeds the
anticipated usage level by more than 10 percent. In any event, Landlord may
require Tenant to reduce its consumption to the anticipated usage level. The
term “utility” for purposes hereof may refer to but is not limited to
electricity, gas, water, sewer, steam, fire protection system, telephone or
other communication or alarm service, as well as HVAC, and all taxes or other charges
thereon.

 

F.                                       Interruptions. Landlord does not warrant that any of the
services referred to above, or any other services which Landlord may supply,
will be free from interruption and Tenant acknowledges that any one or more of
such services may be suspended by reason of accident, repairs, inspections,
alterations or improvements necessary to be made, or by strikes or lockouts, or
by reason of operation of law, or causes beyond the reasonable control of Landlord.
Any interruption or discontinuance of service shall not be deemed an eviction
or disturbance of Tenant’s use and possession of the Premises, or any part
thereof, nor render Landlord liable to Tenant for damages by abatement of the
Rent or otherwise, nor relieve Tenant from performance of Tenant’s obligations
under this Lease. Landlord shall however, exercise reasonable diligence to
restore any service so interrupted.

 

G.                                     Utilities Provided by
Tenant. Tenant
shall (i) make application in Tenant’s own name for all utilities not provided
by Landlord, (ii) comply with all utility company regulations for such
utilities, including requirements for the installation of meters, and (iii) obtain
such utilities directly from, and pay for the same when due directly to, the applicable
utility company. The term “utilities” for purposes hereof shall include but not
be limited to electricity, gas, water, sewer, steam, fire protection, telephone
and other communication and alarm services, as well as HVAC, and all taxes or
other charges thereon. Tenant shall install and connect all equipment and lines
required to supply such utilities to the extent not already available at or
serving the Premises, or at Landlord’s option shall repair, alter or replace
any such existing items. Tenant shall maintain, repair and replace all such
items, operate the same, and keep the same in good working order and condition.
Tenant shall not install any equipment or fixtures, or use the same, so as to
exceed the safe and lawful capacity of any utility equipment or lines serving
the same. The installation, alteration, replacement or connection of any
utility equipment and lines shall be subject to the requirements for
alterations of the Premises set forth in Article 5. Tenant shall ensure
that all Tenant’s HVAC equipment, is installed and operated at all times in a
manner to prevent roof leaks, damage, or noise due to vibrations or improper
installation, maintenance or operation.

 

6

 

ARTICLE 8. INSURANCE

 

A.                                     Required Insurance. Tenant shall maintain insurance policies,
with responsible companies licensed to do business in the state where the
Building is located and satisfactory to Landlord, naming Landlord, Landlord’s Building
Manager, Tenant and any Mortgagee of Landlord, as their respective interests
may appear, at its own cost and expense including (i) “all risk” property
insurance which shall be primary on Tenant’s Work as referenced in
Article 5 and Tenant’s property, including its goods, equipment and
inventory, in an amount adequate to cover their replacement cost; (ii) business
interruption insurance, (iii) commercial general liability insurance on an
occurrence basis with limits of liability in an amount not less than $1,000,000
(One Million Dollars) combined single limit for each occurrence. The commercial
general liability policy shall include contractual liability which includes the
provisions of Article 9 herein.

 

On or before the
Commencement Date, Tenant shall furnish to Landlord and its Building Manager,
certificates of insurance evidencing the aforesaid insurance coverage,
including naming Landlord, 9801 Westchase, Ltd., and Landlord’s Building
Manager as additional insureds. Renewal certificates must be furnished to
Landlord at least thirty (30) days prior to the expiration date of such
insurance policies showing the above coverage to be in full force and effect.

 

All such insurance shall
provide that it cannot be canceled except upon thirty (30) days’ prior written
notice to Landlord. Tenant shall comply with all rules and directives of
any insurance board, company or agency determining rates of hazard coverage for
the Premises, including but not limited to the installation of any equipment
and/or the correction of any condition necessary to prevent any increase in
such rates.

 

B.                                     Waiver of Subrogation. Landlord and Tenant each agree that
neither Landlord nor Tenant will have any claim against the other for any loss,
damage or injury which is covered by insurance carried by either party and for which
recovery from such insurer is made, notwithstanding the negligence of either
party in causing the loss. This release shall be valid only if the insurance
policy in question permits waiver of subrogation or if the insurer agrees in writing
that such waiver of subrogation will not affect coverage under said policy.
Each party agrees to use its best efforts to obtain such an agreement from its
insurer if the policy does not expressly permit a waiver of subrogation.

 

C.                                     Waiver of Claims. Except for claims arising from Landlord’s
willful misconduct that are not covered by Tenant’s insurance required
hereunder, Tenant waives all claims against Landlord for injury or death to
persons, damage to property or to any other interest of Tenant sustained by
Tenant or any party claiming, through Tenant resulting from: (i) any
occurrence in or upon the Premises, (ii) leaking of roofs, bursting, stoppage or
leaking of water, gas, sewer or steam pipes or equipment, including sprinklers,
(iii) wind, rain, snow, ice, flooding, freezing, fire, explosion, earthquake,
excessive heat or cold, or other casualty, (iv) the Building, the Premises, or
the operating and mechanical systems or equipment of the Building, being
defective, or failing, and (v) vandalism, malicious mischief, theft or other
acts or omissions of any other parties including without limitation, other
tenants, contractors and invitees at the Building. Tenant agrees that Tenant’s
property loss risks shall be borne by its insurance, and Tenant agrees to look
solely to and seek recovery only from its insurance carriers in the event of
such losses. For purposes hereof, any deductible amount shall be treated as
though it were recoverable under such policies.

 

ARTICLE 9. INDEMNIFICATION

 

Tenant shall
indemnify, defend and hold harmless Landlord and its agents, successors and
assigns, including its Building Manager, from and against all injury, loss,
costs, expenses, claims or damage (including attorney’s fees and disbursements)
to any person or property arising from, related to, or in connection with any use
or occupancy of the Premises by or any act or omission (including, without
limitation, construction and repair of the Premises arising out of Tenant’s
Work or subsequent work) of Tenant, its agents, contractors, employees,
customers, and invitees, which indemnity extends to any and all claims 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. This indemnification shall
survive the expiration or termination of the Term.

 

Landlord shall not
be liable to Tenant for any damage by or from any act or negligence of any
co-tenant or other occupant of the Building, or by any owner or occupants of
adjoining or contiguous property. Landlord shall not be liable for any injury
or damage to persons or property resulting in whole or in part from the
criminal activities or

 

7

 

willful misconduct of
others. To the extent not covered by all risk property insurance, Tenant agrees
to pay for all damage to the Building, as well as all damage to persons or
property of other tenants or occupants thereof, caused by the negligence, fraud
or willful misconduct of Tenant or any of its agents, contractors, employees,
customers and invitees. Nothing contained herein shall be construed to relieve
Landlord from liability for any personal injury resulting from its gross
negligence, fraud or willful misconduct. Any liability of Landlord under this
Lease shall not apply to any of Landlord’s General and Limited Partners,
Officers and/or employees.

 

ARTICLE 10. CASUALTY DAMAGE

 

Tenant shall promptly
notify Landlord or the Building Manager of any fire or other casualty to the
Premises or to the extent it knows of damage, to the Building. In the event the
Premises or any substantial part of the Building is wholly or partially damaged
or destroyed by fire or other casualty which is covered by Landlord’s
insurance, Landlord will proceed to restore the same to substantially the same
condition existing immediately prior to such damage or destruction unless such
damage or destruction is incapable of repair or restoration within one hundred
eighty (180) days, in which event Landlord may, at Landlord’s option and by
written notice given to Tenant within sixty (60) days of such damage or
destruction, declare this Lease terminated as of the happening of such damage
or destruction. If in Landlord’s sole opinion the net insurance proceeds
recovered by reason of the damage or destruction will not be adequate to
complete the restoration of the Building, Landlord shall have the right to
terminate this Lease and all unaccrued obligations of the parties hereto by
sending a notice of such termination to Tenant. To the extent after fire or
other casualty that Tenant shall be deprived of the use and occupancy of the
Premises or any portion thereof as a result of any such damage, destruction or
the repair thereof, provided that Tenant did not cause the fire or other
casualty, Tenant shall be relieved of the same ratable portion of the Monthly
Rent hereunder as the amount of damaged or useless space in the Premises bears
to the rentable square footage of the Premises until such time as the Premises
may be restored. Landlord shall reasonably determine the amount of damaged or
useless space and the square footage of the Premises referenced in the prior
sentence.

 

ARTICLE 11. CONDEMNATION

 

In the event of a
condemnation or taking of the entire Premises by a public or quasi-public
authority, this Lease shall terminate as of the date title vests in the public
or quasi-public authority. In the event of a taking or condemnation of fifteen
percent (15%) or more (but less than the whole) of the Building and without
regard to whether the Premises are part of such taking or condemnation,
Landlord may elect to terminate this Lease by giving notice to Tenant within
sixty (60) days of Landlord receiving notice of such condemnation. All
compensation awarded for any condemnation shall be the property of Landlord,
whether such damages shall be awarded as a compensation for diminution in the
value of the leasehold or to the fee of the Premises, and Tenant hereby assigns
to Landlord all of Tenant’s right, title and interest in and to any and all
such compensation; provided, however, that in the event this Lease is terminated,
Tenant shall be entitled to make a separate claim for the taking of Tenant’s
personal property (including fixtures paid for by Tenant), and for costs of
moving. Notwithstanding anything herein to the contrary, any condemnation award
to Tenant shall be available only to the extent such award is payable
separately to Tenant and does not diminish the award available to Landlord or
any Lender of Landlord and such award shall be limited to the amount of Rent
actually paid by Tenant to Landlord for the period of time for which the award
is given. Any additional portion of such award shall belong to Landlord.

 

ARTICLE 12. REPAIR AND MAINTENANCE

 

A.                                   Tenant’s
Obligations.  Tenant shall keep the Premises in good
working order, repair (and in compliance with all Laws now or hereafter
adopted) and condition (which condition shall be neat, clean and sanitary, and
free of pests and rodents), and shall make all necessary non-structural repairs
thereto and any repairs to non-Building standard mechanical, HVAC (including
supplemental and package AC units), electrical and plumbing systems or
components in or serving the Premises, including, without limitation, private
restroom plumbing fixtures and equipment and all appliances in the
kitchen/breakroom. Tenant’s obligations hereunder shall include, but not be
limited to, Tenant’s trade fixtures and equipment, security systems, signs,
interior decorations, floor-coverings, wall-coverings, entry and interior
doors, interior glass, light fixtures and bulbs, keys and locks, alterations to
the Premises whether installed by Tenant or Landlord. For any work performed by
Landlord on behalf of Tenant, Tenant shall pay Landlord, as Additional Rent,
the cost of said work plus ten percent (10%) as reimbursement for

 

8

 

Landlord’s
overhead. Each payment shall be made to Landlord within ten (10) days
after receipt of an invoice from Landlord.

 

B.                                     Landlord’s Obligations. Landlord shall make all necessary
structural repairs to the Building and any necessary repairs to the Building
standard mechanical, HVAC, electrical, and plumbing systems in or servicing the
Premises (the cost of which shall be included in Operating Expenses under Article 4),
excluding repairs required to be made by Tenant pursuant to this Article.
Landlord shall have no responsibility to make any repairs unless and until
Landlord receives written notice of the need for such repair. Landlord shall
not be liable for any failure to make repairs or to perform any maintenance unless
such failure shall persist for an unreasonable time after written notice of the
need for such repairs or maintenance is received by Landlord from Tenant.
Landlord shall make every reasonable effort to perform all such repairs or
maintenance in such a manner (in its judgment) so as to cause minimum
interference with Tenant and the Premises but Landlord shall not be liable to
Tenant for any interruption or loss of business pertaining to such activities.
Landlord shall have the right to require that any damage caused by the willful
misconduct of Tenant or any of Tenant’s agents, contractors, employees,
invitees or customers, be paid for and performed by the Tenant (without
limiting Landlord’s other remedies herein).

 

C.                                     Signs and Obstructions. Tenant shall not obstruct or permit the
obstruction of light, halls, Common Areas, roofs, parapets, stairways or
entrances to the Building or the Premises and will not affix, paint, erect or inscribe
any sign, projection, awning, signal or advertisement of any kind to any part
of the Building or the Premises, including the inside or outside of the windows
or doors, without the written consent of Landlord. Landlord shall have the
right to withdraw such consent at any time and to require Tenant to remove any
sign, projection, awning, signal or advertisement to be affixed to the Building
or the Premises. If such work is done by Tenant through any person, firm or
corporation not designated by Landlord, or without the express written consent of
Landlord, Landlord shall have the right to remove such signs, projections,
awnings, signals or advertisements without being liable to the Tenant by reason
thereof and to charge the cost of such removal to Tenant as Additional Rent,
payable within ten (10) days of Landlord’s demand therefor.

 

D.                                     Outside Services. Tenant shall not permit, except by
Landlord or a person or company reasonably satisfactory to and approved by
Landlord: (i) the extermination of vermin in, on or about the Premises; (ii) the
servicing of heating, ventilating and air conditioning equipment; (iii) the
servicing or addition thereof of any electrical component; (iv) the
collection of rubbish and trash other than in compliance with local government
health requirements and in accordance with the rules and regulations established
by Landlord, which shall minimally provide that Tenant’s rubbish and trash
shall be kept in containers located so as not to be visible to members of the public
and in a sanitary and neat condition; or (v) window cleaning, janitorial
services or similar work in the Premises.

 

ARTICLE 13. INSPECTION OF PREMISES

 

Tenant shall
permit Landlord, the Building Manager and its authorized representatives to
enter the Premises to show the Premises during Normal Business Hours of
Building and at other reasonable times to inspect the Premises and to make such
repairs, improvements, alterations or additions in the Premises or in the
Building of which they are a part as Landlord may deem necessary or
appropriate.

 

ARTICLE 14. SURRENDER OF PREMISES

 

Upon the expiration
or sooner termination of the Term, Tenant shall quit and surrender to Landlord
the Premises, broom clean, in good order and condition, normal wear and tear
and damage by fire and other casualty excepted. All leasehold improvements and
other fixtures, such as light fixtures and HVAC equipment, wall coverings,
carpeting and drapes, in or serving the Premises, whether installed by Tenant
or Landlord, shall be Landlord’s property and shall remain, all without
compensation, allowance or credit to Tenant. Any property not removed shall be
deemed to have been abandoned by Tenant and may be retained or disposed of by
Landlord at Tenant’s expense free of any and all claims of Tenant, as Landlord
shall desire. All property not removed from the Premises by Tenant may be
handled or stored by Landlord at Tenant’s expense and Landlord shall not be
liable for the value, preservation or safekeeping thereof. At Landlord’s option
all or part of such property may be conclusively deemed to have been conveyed
by Tenant to Landlord as if by bill of sale without payment by Landlord. Tenant
hereby waives

 

9

 

to the maximum
extent allowable the benefit of all Laws now or hereafter in force in the state
in which the Building is located or elsewhere exempting property from liability
for rent or for debt.

 

ARTICLE 15. HOLDING OVER

 

Tenant shall pay
Landlord 150% of the amount of Rent then applicable prorated on a per diem
basis for each day Tenant shall retain possession of the Premises or any part
thereof after expiration or earlier termination of the Term, together with all
damages sustained by Landlord on account thereof. The foregoing provisions
shall not serve as permission for Tenant to hold-over, nor serve to extend the
Term (although Tenant shall remain bound to comply with all provisions of this
Lease until Tenant vacates the Premises) and Landlord shall have the right at
any time thereafter to enter and possess the Premises and remove all property
and persons therefrom.

 

ARTICLE 16. SUBLETTING AND ASSIGNMENT

 

Tenant shall not, without
the prior written consent of Landlord, list the Premises or any part thereof as
available for assignment or sublease with any broker or agent or otherwise
advertise, post, communicate or solicit prospective assignees or subtenants
through any direct or indirect means, nor assign this Lease or any interest
thereunder, or sublet the Premises or any part thereof, or permit the use of
Premises by any party other than Tenant, or mortgage, collaterally assign or
grant a security interest in this Lease. In the event that during the Term,
Tenant desires to assign or sublease and introduces Landlord to a proposed
assignee, sublessee or replacement tenant for Tenant, which assignee, sublessee
or replacement tenant has a good reputation, is of financial strength at least
equal to that of Tenant (as determined by Landlord in its sole discretion) and
has a use for Premises and a number of employees reasonably consistent with
that of Tenant’s operation, Landlord shall consider such assignee, sublessee or
replacement tenant and notify Tenant with reasonable promptness as to
Landlord’s choice, at Landlord’s sole discretion, of the following:

 

(a)                                 That Landlord consents to a subleasing of
the Premises or assignment of this Lease to such assignee or sublessee provided
that Tenant shall remain fully liable for all of its obligations and
liabilities under this Lease and provided further that Landlord shall be
entitled to any profit obtained by Tenant from such subletting or assignment;
or

 

(b)                                That upon such replacement tenant’s
entering into a mutually satisfactory new lease for the Premises with Landlord,
then Tenant shall be released from all further obligations and liabilities
under this Lease (excepting only any unpaid rentals or any unperformed
covenants then past due under this Lease or any guarantee by Tenant of
replacement tenant’s obligations); or

 

(c)                                 That Landlord declines to consent to such
sublease or assignment due to insufficient or unsatisfactory documentation
furnished to Landlord to establish Tenant’s reputation, financial strength and
proposed use of and operations upon Premises; or

 

(d)                                That Landlord elects to cancel this Lease
and recapture the Premises (in the case of an assignment) or that Landlord elects
to cancel this Lease as to the portion thereof that Tenant had wished to
sublease. In either such event Tenant shall surrender possession of the
Premises, or the portion thereof which is the subject of Tenant’s request on
the date set forth in a notice from Landlord in accordance with the provisions
of this Lease relating to the surrender of the Premises. If this Lease shall be
canceled as to a portion of the Premises only, the Rent payable by Tenant
hereunder shall be abated proportionately according to the ratio that the area
of the portion of the Premises surrendered (as computed by Landlord) bears to
the area of the Premises immediately prior to such surrender. If Landlord shall
cancel this Lease, Landlord may relet the Premises, or the applicable portion
of the Premises, to any other party (including, without limitation, the
proposed assignee, sublessee or replacement tenant), without any liability to
Tenant.

 

In no case may
Tenant assign any options to sublessee(s) or assignee(s) hereunder,
all such options being deemed personal to Tenant only. Consent by Landlord
hereunder shall in no way operate as a waiver by Landlord of, or to release or
discharge Tenant from, any liability under this Lease or be construed to
relieve Tenant from obtaining Landlord’s consent to any subsequent assignment,
subletting, transfer, use or occupancy.

 

10

 

ARTICLE 17. SUBORDINATION, ATTORNMENT
AND MORTGAGEE PROTECTION

 

This Lease is subject and
subordinate to all Mortgages now or hereafter placed upon the Building, and all
other encumbrances and matters of public record applicable to the Building,
including without limitation, any reciprocal easement or operating agreements,
covenants, conditions and restrictions and Tenant shall not act or permit the
Premises to be operated in violation thereof. If any foreclosure or power of
sale proceedings are initiated by any Lender or a deed in lieu is granted (or
if any ground lease is terminated), Tenant agrees, upon written request of any
such Lender or any purchaser at such foreclosure sale, to attorn and pay Rent
to such party and to execute and deliver any instruments necessary or
appropriate to evidence or effectuate such attornment. In the event of
attornment, no Lender shall be: (i) liable for any act or omission of
Landlord, or subject to any offsets or defenses which Tenant might have against
Landlord (prior to such Lender becoming Landlord under such attornment), (ii) liable
for any security deposit or bound by any prepaid Rent not actually received by
such Lender, or (iii) bound by any future modification of this Lease not
consented to by such Lender. Any Lender may elect to make this Lease prior to
the lien of its Mortgage, and if the Lender under any prior Mortgage shall require,
this Lease shall be prior to any subordinate Mortgage; such elections shall be
effective upon written notice to Tenant. Tenant agrees to give any Lender by
certified mail, return receipt requested, a copy of any notice of default
served by Tenant upon Landlord, provided that prior to such notice Tenant has
been notified in writing (by way of service on Tenant of a copy of an
assignment of leases, or otherwise) of the name and address of such Lender.
Tenant further agrees that if Landlord shall have failed to cure such default
within the time permitted Landlord for cure under this Lease, any such Lender
whose address has been so provided to Tenant shall have an additional period of
thirty (30) days in which to cure (or such additional time as may be required
due to causes beyond such Lender’s control, including time to obtain possession
of the Building by power of sale or judicial action or deed in lieu of
foreclosure). The provisions of this Article shall be self-operative;
provided, however, Tenant shall execute such documentation as Landlord or any
Lender may request from time to time in order to confirm the matters set forth
in this Article in recordable form. To the extent not expressly prohibited
by Law, Tenant waives the provisions of any Law now or hereafter adopted which
may give or purport to give Tenant any right or election to terminate or
otherwise adversely affect this Lease or Tenant’s obligations hereunder if such
foreclosure or power of sale proceedings are initiated, prosecuted or completed.

 

ARTICLE 18. ESTOPPEL CERTIFICATE

 

Tenant shall from
time to time, upon written request by Landlord or Lender, deliver to Landlord
or Lender, within ten (10) days after receipt of such request, a statement
in writing certifying: (i) that this Lease is unmodified and in full force
and effect (or if there have been modifications, identifying such modifications
and certifying that the Lease, as modified, is in full force and effect); (ii) the
dates to which Rent has been paid; (iii) that Landlord is not in default
under any provision of this Lease (or if Landlord is in default, specifying
each such default); and (iv) the address to which notices to Tenant shall
be sent; it being understood that any such statement so delivered may be relied
upon in connection with any lease, mortgage or transfer.

 

Tenant’s failure
to deliver such statement within such time shall be conclusive upon Tenant
that: (i) this Lease is in full force and effect and not modified except
as Landlord may represent; (ii) not more than one month’s Rent has been
paid in advance; (iii) there are no defaults by Landlord; and (iv) notices
to Tenant shall be sent to Tenant’s Address as set forth in Article 1 of
this Lease. Notwithstanding the presumptions of this Article, Tenant shall not
be relieved of its obligation to deliver said statement.

 

ARTICLE 19. DEFAULTS

 

If Tenant: (i) fails
to pay when due any installment or other payment of Rent, or to keep in effect
any insurance required to be maintained; or (ii) vacates or abandons the
Premises; or (iii) becomes insolvent, makes an assignment for the benefit
of creditors, files a voluntary bankruptcy or an involuntary petition in
bankruptcy is filed against Tenant which petition is not dismissed within sixty
(60) days of its filing (or any of the events described in this clause (iii) occurs
with respect to any guarantor of this Lease); or (iv) fails to perform or
observe any of the other covenants, conditions or agreements contained herein
on Tenant’s part to be kept or performed and such failure shall continue for
thirty (30) days after notice thereof given by or on behalf of Landlord; or (v) if
the interest of Tenant under this Lease shall be offered for sale or sold under
execution or other legal process or if Tenant makes any

 

11

 

transfer,
assignment, conveyance, sale, pledge, disposition of all or a substantial
portion of Tenant’s property, then any such event or conduct shall constitute a
“default” hereunder.

 

If Tenant shall file a
voluntary petition pursuant to the United States Bankruptcy Reform Act of 1978,
as the same may be from time to time be amended (the “Bankruptcy Code”), or
take the benefit of any insolvency act or be dissolved, or if an involuntary
petition be filed against Tenant pursuant to the Bankruptcy Code and said
petition is not dismissed within thirty (30) days after such filing, or if a
receiver shall be appointed for its business or its assets and the appointment
of such receiver is not vacated within thirty (30) days after such appointment,
or if it shall make an assignment for the benefit of its creditors, then
Landlord shall have all of the rights provided for in the event of nonpayment
of the Rent.

 

If any alleged default on
the part of Landlord hereunder occurs, Tenant shall give written notice to
Landlord in the manner herein set forth and shall afford Landlord a reasonable
opportunity to cure any such default. In addition, Tenant shall send notice of
such default by certified or registered mail, postage prepaid, to the holder of
any Mortgage whose address Tenant has been notified of in writing, and shall
afford such Mortgage holder a reasonable opportunity to cure any alleged
default on Landlord’s behalf. In no event will Landlord be responsible for any
damages incurred by Tenant, including but not limited to, lost profits or
interruption of business as a result of any alleged default by Landlord
hereunder.

 

ARTICLE 20. REMEDIES OF LANDLORD

 

The remedies provided
Landlord under this Lease are cumulative.

 

(a)                                 Upon the occurrence of any default,
Landlord may serve notice on Tenant that the Term and the estate hereby vested
in Tenant and any and all other rights of Tenant hereunder shall cease on the
date specified in such notice and on the specified date this Lease shall cease
and expire as fully and with the effect as if the Term had expired for passage
of time.

 

(b)                                Without terminating this Lease in case of
a default or if this Lease shall be terminated for default as provided herein,
Landlord may re-enter the Premises, remove Tenant, or cause Tenant to be
removed from the Premises in such manner as Landlord may deem advisable, with
or without legal process, and using such reasonable force as may be necessary.
In the event of re-entry without terminating this Lease, Tenant shall continue
to be liable for all Rents and other charges accruing or coming due under this
Lease.

 

(c)                                 If Landlord, without terminating this
Lease, shall re-enter the Premises or if this Lease shall be terminated as
provided in paragraph (a) above:

 

(i)                                     All Rent due from Tenant to Landlord
shall thereupon become due and shall be paid up to the time of re-entry,
dispossession or expiration;

 

(ii)                                   Landlord, without any obligation to do
so, may relet the Premises or any part thereof for a term or terms which may at
Landlord’s option be less than or exceed the period which would otherwise have
constituted the balance of the Term and may grant such concessions in reletting
as Landlord, in the exercise of its reasonable business judgment, deems
desirable. In connection with such reletting, Tenant shall be liable for all
costs of the reletting including, without limitation, rent concessions, leasing
commissions, legal fees and alteration and remodeling costs; and

 

(iii)                               If Landlord shall have terminated this
Lease, Tenant shall also be liable to Landlord for all damages provided for in
law and under this Lease resulting from Tenant’s breach including, without
limitation, the difference between the aggregate rentals reserved under the
terms of this Lease for the balance of the Term together with all other sums
payable hereunder as Rent for the balance of the Term, less the fair rental
value of the Premises for that period determined as of the date of such
termination. For purposes of this paragraph, Tenant shall be deemed to include
any guarantor or surety of the Lease.

 

12

 

(d)                                Tenant hereby waives all right to trial
by jury in any claim, action, proceeding or counterclaim by either Landlord or
Tenant against each other or any matter arising out of or in any way connected
with this Lease, the relationship of Landlord and Tenant, and/or Tenant’s use
or occupancy or the Premises.

 

(e)                                 Tenant shall pay upon demand, all costs
and expenses, including court costs and reasonable legal fees, incurred by
Landlord in enforcing Tenant’s obligations under this Lease, or resulting from
Tenant’s default under this Lease.

 

(f)                                   In addition to the above, Landlord shall
have any and all other rights provided a landlord at law or in equity for
breach of a lease or tenancy by a tenant.

 

ARTICLE 21. QUIET ENJOYMENT

 

Landlord covenants
and agrees with Tenant that so long as Tenant pays the Rent and observes and
performs all the terms, covenants, and conditions of this Lease on Tenant’s
part to be observed and performed, Tenant may peaceably and quietly enjoy the
Premises subject, nevertheless, to the terms and conditions of this Lease, and
Tenant’s possession will not be disturbed by anyone claiming by, through, or
under Landlord.

 

ARTICLE 22. ACCORD AND SATISFACTION

 

No payment by
Tenant or receipt by Landlord of an amount less than full payment of Rent then
due and payable shall be deemed to be other than on account of the Rent then
due and payable, nor shall any endorsement or statement on any check or any
letter accompanying any check or payment as Rent be deemed an accord and
satisfaction, and Landlord may accept such check or payment without prejudice
to Landlord’s right to recover the balance of such Rent or pursue any other
remedy provided for in this Lease or available at law or in equity.

 

ARTICLE 23. SECURITY DEPOSIT

 

To secure the
faithful performance by Tenant of all of the covenants, conditions and
agreements set forth in this Lease to be performed by it, including, without
limitation, such covenants, conditions and agreements in this Lease which
become applicable upon its termination by re-entry or otherwise, Tenant has
deposited with Landlord the sum shown in Article 1 as a “Security Deposit”
on the understanding:

 

(a)                                 that the Security Deposit or any portion
thereof may be applied to the curing of any default that may exist, without
prejudice to any other remedy or remedies which the Landlord may have on
account thereof, and upon such application Tenant shall pay Landlord on demand
the amount so applied which shall be added to the Security Deposit so the same
will be restored to its original amount;

 

(b)                                that should the Premises be conveyed by
Landlord, the Security Deposit or any balance thereof may be turned over to
Landlord’s grantee, and if the same be turned over as aforesaid, Tenant hereby
releases Landlord from any and all liability with respect to the Security
Deposit and its application or return, and Tenant agrees to look solely to such
grantee for such application or return;

 

(c)                                 that Landlord may commingle the Security
Deposit with other funds and shall not be obligated to pay Tenant any interest;

 

(d)                                that the Security Deposit shall not be
considered as advance payment of Rent or a measure of damages for any default
by Tenant, nor shall it be a bar or defense to any actions by Landlord against
Tenant; and

 

(e)                                 that if Tenant shall faithfully perform
all of the covenants and agreements contained in this Lease on the part of
Tenant to be performed, the Security Deposit or any then remaining balance
thereof, shall be returned to Tenant, without interest, within thirty (30) days
after the expiration of the Term. Tenant further covenants that it will not
assign or encumber the money deposited herein as a Security Deposit and that neither
Landlord nor its successors or assigns shall be bound by any such assignment,
encumbrance, attempted assignment or attempted encumbrance.

 

13

 

ARTICLE 24. BROKERAGE COMMISSION

 

Landlord and Tenant
represent and warrant to each other that neither has dealt with any broker,
finder or agent except for the Broker(s) identified in Article 1.
Tenant represents and warrants to Landlord that (except with respect to the
Broker(s) identified in Article 1 and with whom Landlord has entered
into a separate brokerage agreement) no broker, agent, commission, salesperson,
or other person has represented Tenant in the negotiations for and procurement
of this Lease and of the Premises and that no commissions, fees, or
compensation of any kind are due and payable in connection herewith to any
broker, agent, commission, salesperson, or other person. Tenant agrees to
indemnify, defend and hold Landlord harmless from any and all claims, suits, or
judgments (including, without limitation, reasonable attorneys’ fees and court
costs incurred in connection with any such claims, suits, or judgments, or in
connection with the enforcement of this indemnity) for any fees, commissions,
or compensation of any kind which arise out of or are in any way connected with
any claimed agency relationship not referenced in Article 1.

 

ARTICLE 25. FORCE MAJEURE

 

Landlord shall be
excused for the period of any delay in the performance of any obligation
hereunder when prevented from so doing by a cause or causes beyond its control,
including all labor disputes, civil commotion, war, war-like operations,
invasion, rebellion, hostilities, military or usurped power, sabotage,
governmental regulations or controls, inability to obtain or delays in
obtaining any governmental approvals or permits, fire or other casualty,
inability to obtain or delay in obtaining any material, services or financing,
or through acts of God. Tenant shall similarly be excused for delay in the
performance of any obligation hereunder; provided:

 

(a)                                  nothing contained in this Article or
elsewhere in this Lease shall be deemed to excuse or permit any delay in the
payment of the Rent, or any delay in the cure of any default which may be cured
by the payment of money;

 

(b)                                 no reliance by Tenant upon this Article shall
limit or restrict in any way Landlord’s right of self-help as provided in this
Lease; and

 

(c)                                  Tenant shall not be entitled to rely upon
this Article unless it shall first have given Landlord notice of the
existence of any force majeure preventing the performance of an obligation of
Tenant within five days after the commencement of the force majeure.

 

ARTICLE 26. PARKING

 

(a)                                  Landlord hereby grants to Tenant the right,
in common with others authorized by Landlord, to use the parking facilities
owned by Landlord. Landlord, at its sole election, may designate the types and
locations of parking spaces within the parking facilities which Tenant shall be
allowed to use. Landlord shall have the right, at Landlord’s sole election, to
change said types and locations from time to time; provided, however, such
designation shall be uniformly applied and shall not unfairly favor any tenant
in the Building.

 

(b)                                 Commencing on the Commencement Date,
Tenant shall pay Landlord the Parking Fee, if any, shown in Article 1, as
Additional Rent, payable monthly in advance with Monthly Rent. If there is a
Parking Fee shown in Article 1, then thereafter, and throughout the Term,
the parking rate for each type of parking space provided to Tenant hereunder
shall be the prevailing parking rate, as Landlord may designate from time to
time, at Landlord’s sole election, for each such type of parking space. In
addition to the right reserved hereunder by Landlord to designate the parking
rate from time to time, Landlord shall have the right to change the parking
rate at any time to include therein any amounts levied, assessed, imposed or
required to be paid to any governmental authority on account of the parking of
motor vehicles, including all sums required to be paid pursuant to
transportation controls imposed by the Environmental Protection Agency under
the Clean Air Act of 1970, as amended, or otherwise required to be paid by any
governmental authority with respect to the parking, use, or transportation of
motor vehicles, or the reduction or control of motor vehicle traffic, or motor
vehicle pollution.

 

14

 

(c)                                  If requested by Landlord, Tenant shall
notify Landlord of the license plate number, year, make and model of the
automobiles entitled to use the parking facilities and if requested by
Landlord, such automobiles shall be identified by automobile window stickers
provided by Landlord, and only such designated automobiles shall be permitted
to use the parking facilities. If Landlord institutes such an identification
procedure, Landlord may provide additional parking spaces for use by customers
and invitees of Tenant on a daily basis at prevailing parking rates, if any. At
Landlord’s sole election, Landlord may make validation stickers available to
Tenant for any such additional parking spaces, provided, however, if Landlord
makes validation stickers available to any other tenant in the Building, Landlord
shall make such validation stickers available to Tenant.

 

(d)                                 The parking facilities provided for
herein are provided solely for the accommodation of Tenant and Landlord assumes
no responsibility or liability of any kind whatsoever from whatever cause with
respect to the automobile parking areas, including adjoining streets,
sidewalks, driveways, property and passageways, or the use thereof by Tenant or
Tenant’s employees, customers, agents, contractors or invitees.

 

ARTICLE 27. HAZARDOUS MATERIALS

 

A.                                    Definition of Hazardous
Materials. The
term “Hazardous Materials” for purposes hereof shall mean any chemical,
substance, material or waste or component thereof which is now or hereafter
listed, defined or regulated as a hazardous or toxic chemical, substance,
material or waste or component thereof by any federal, state or local governing
or regulatory body having jurisdiction, or which would trigger any employee or
community “right-to- know” requirements adopted by any such body, or for which
any such body has adopted any requirements for the preparation or distribution
of a materials safety data sheet (“MSDS”).

 

B.                                    No Hazardous Materials. Tenant shall not transport, use, store,
maintain, generate, manufacture, handle, dispose, release or discharge any Hazardous
Materials. However, the foregoing provisions shall not prohibit the transportation
to and from, and use, storage, maintenance and handling within the Premises of
Hazardous Materials customarily used in the business or activity expressly
permitted to be undertaken in the Premises under Article 6, provided: (a) such
Hazardous Materials shall be used and maintained only in such quantities as are
reasonably necessary for such permitted use of the Premises and the ordinary
course of Tenant’s business therein, strictly in accordance with applicable
Law, highest prevailing standards, and the manufacturers’ instructions
therefor, (b) such Hazardous Materials shall not be disposed of, released
or discharged in the Building, and shall be transported to and from the
Premises in compliance with all applicable Laws, and as Landlord shall
reasonably require, (c) if any applicable Law or Landlord’s trash removal
contractor requires that any such Hazardous Materials be disposed of separately
from ordinary trash, Tenant shall make arrangements at Tenant’s expense for
such disposal directly with a qualified and licensed disposal company at a
lawful disposal site (subject to scheduling and approval by Landlord), and (d) any
such remaining Hazardous Materials shall be completely, properly and lawfully
removed from the Building upon expiration or earlier termination of this Lease.

 

C.                                    Notices To Landlord. Tenant shall promptly notify Landlord of:
(i) any enforcement, cleanup or other regulatory action taken or
threatened by any governmental or regulatory authority with respect to the
presence of any Hazardous Materials on the Premises or the migration thereof
from or to other property, (ii) any demands or claims made or threatened
by any party relating to any loss or injury resulting from any Hazardous
Materials on the Premises, (iii) any release, discharge or non-routine,
improper or unlawful disposal or transportation of any Hazardous Materials on
or from the Premises or in violation of this Article, and (iv) any matters
where Tenant is required by Law to give a notice to any governmental or
regulatory authority respecting any Hazardous Materials on the Premises.
Landlord shall have the right (but not the obligation) to join and participate,
as a party, in any legal proceedings or actions affecting the Premises
initiated in connection with any environmental, health or safety Law. At such
times as Landlord may reasonably request, Tenant shall provide Landlord with a
written list, certified to be true and complete, identifying any Hazardous
Materials then used, stored, or maintained upon the Premises, the use and
approximate quantity of each such materials, a copy of any MSDS issued by the
manufacturer therefor, and such other information as Landlord may reasonably
require or as may be required by Law.

 

D.                                    Indemnification of
Landlord. If any
Hazardous Materials are released, discharged or disposed of by Tenant or any
other occupant of the Premises, or their employees, agents, invitees or
contractors, on or about the Building in violation of the foregoing provisions,
Tenant shall immediately, properly and in compliance with applicable Laws clean
up, remediate and remove the Hazardous Materials from the Building and any
other affected

 

15

 

property and clean
or replace any affected personal property (whether or not owned by Landlord),
at Tenant’s expense (without limiting Landlord’s other remedies therefor).
Tenant shall further be required to indemnify, defend and hold Landlord, Landlord’s
directors, officers, employees and agents harmless from and against any and all
claims, demands, liabilities, losses, damages, penalties and judgments directly
or indirectly arising out of or attributable to a violation of the provisions
of this Article by Tenant, Tenant’s occupants, employees, contractors or
agents. Any clean up, remediation and removal work shall be subject to
Landlord’s prior written approval (except in emergencies), and shall include,
without limitation, any testing, investigation, and the preparation and
implementation of any remedial action plan required by any governmental body
having jurisdiction or reasonably required by Landlord. If Landlord or any
Lender or governmental body arranges for any tests or studies showing that this
Article has been violated, Tenant shall pay for the costs of such tests.
The provisions of this Article shall survive the expiration or earlier
termination of the Term.

 

ARTICLE 28. ADDITIONAL RIGHTS
RESERVED BY LANDLORD

 

In addition to any
other rights provided for herein, Landlord reserves the following rights,
exercisable without liability to Tenant for damage or injury to property,
person or business and without effecting an eviction, constructive or actual,
or disturbance of Tenant’s use or possession or giving rise to any claim:

 

(a)                                To name the Building and to change the
name or street address of the Building;

 

(b)                               To install and maintain all signs on the
exterior and interior of the Building;

 

(c)                                To designate all sources furnishing sign
painting or lettering for use in the Building:

 

(d)                               During the last ninety (90) days of the
Term, if Tenant has vacated the Premises, to decorate, remodel, repair, alter
or otherwise prepare the Premises for occupancy, without affecting Tenant’s
obligation to pay Rent for the Premises;

 

(e)                                To have pass keys to the Premises and all
doors therein, excluding Tenant’s vaults and safes;

 

(f)                                  On reasonable prior notice to Tenant, to
exhibit the Premises to any prospective purchaser, Lender, mortgagee, or
assignee of any mortgage on the Building or Land and to others having an
interest therein at any time during the Term, and to prospective tenants during
the last six months of the Term;

 

(g)                               To take any and all measures, including
entering the Premises for the purpose of making inspections, repairs,
alterations, additions and improvements to the Premises or to the Building
(including for the purpose of checking, calibrating, adjusting and balancing
controls and other parts of the Building systems), as may be necessary or desirable
for the operation, improvement, safety, protection or preservation of the
Premises or the Building, or in order to comply with all Laws, or as may
otherwise be permitted or required by this Lease; provided, however, that
during the progress of any work on the Premises or at the Building, Landlord
will attempt not to inconvenience Tenant, but shall not be liable for
inconvenience, annoyance, disturbance, loss of business, or other damage to
Tenant by reason of performing any work or by bringing or storing materials,
supplies, tools or equipment in the Building or the Premises during the
performance of any work, and the obligations of Tenant under this Lease shall
not thereby be affected in any manner whatsoever;

 

(h)                                To relocate various facilities within the
Building and on the land of which the Building is a part if Landlord shall
determine such relocation to be in the best interest of the development of the
Building and said land, provided that such relocation shall not materially
restrict access to the Premises; and

 

(i)                                      To install vending machines of all kinds
in the Building and to receive all of the revenue derived therefrom, provided,
however, that no vending machines shall be installed by Landlord in the
Premises unless Tenant so requests.

 

16

 

ARTICLE 29. DEFINED TERMS

 

For purposes of
this Lease, the following word or words shall have the following meanings:

 

(a)                                   “Building” shall refer to the Building
named in Article 1 of which the Premises are a part (including all
modifications, additions and alterations made to the Building during the Term),
the real property on which the same is located, all plazas, common areas and
any other areas located on said real property and designated by Landlord for use
by all tenants in the Building. The “Premises” as defined in Article 2 are
shown on Exhibit A by hatched lines.

 

(b)                                  “Common Areas” shall mean and include all
areas, facilities, equipment, directories and signs of the Building (exclusive
of the Premises and areas leased to other tenants) made available and
designated by Landlord for the common and joint use and benefit of Landlord,
Tenant and other tenants and occupants of the Building, including, but not
limited to, lobbies, public washrooms, hallways, sidewalks, parking areas,
landscaped areas and service entrances. Common Areas may further include such
areas in adjoining properties under reciprocal easement agreements, operating
agreements or other such agreements now or hereafter in effect and which are
available to Landlord, Tenant and Tenant’s employees and invitees. Landlord
reserves the right in its sole discretion and from time to time, to construct,
maintain, operate, repair, close, limit, take out of service, alter, change,
and modify all or any part of the Common Areas.

 

(c)                                   “Default Rate” shall mean eighteen
percent (18%) per annum, or the highest rate permitted by applicable Law,
whichever shall be less. If the application of the Default Rate causes any
provision of this Lease to be usurious or unenforceable, the Default Rate shall
automatically be reduced so as to prevent such result.

 

(d)                                  “Hazardous Materials” shall have the
meaning set forth in Article 27.

 

(e)                                   “Landlord” and “Tenant” shall be
applicable to one or more parties as the case may be, and the singular shall
include the plural, and the neuter shall include the masculine and feminine;
and if there be more than one, the obligations thereof shall be joint and
several. For purposes of any provisions indemnifying or limiting the liability
of Landlord, the term “Landlord” shall include Landlord’s present and future
partners, members, beneficiaries, trustees, officers, directors, employees,
shareholders, principals, agents, affiliates, successors and assigns.

 

(f)                                     “Law” or “Laws” shall mean all federal,
state, county and local governmental and municipal laws, statutes, ordinances,
rules, regulations, codes, decrees, orders and other such requirements,
applicable equitable remedies and decisions by courts in cases where such
decisions are binding precedents in the state in which the Building is located,
and decisions of federal courts applying the Laws of such state.

 

(g)                                  “Lease” shall mean this lease executed
between Tenant and Landlord, including any extensions, amendments or
modifications and any Exhibits attached hereto.

 

(h)                                 “Lease Year” shall mean each calendar
year or portion thereof during the Term.

 

(i)                                       “Lender” shall mean the holder of a
Mortgage at the time in question, and where such Mortgage is a ground lease,
such term shall refer to the ground lessee.

 

(j)                                        “Mortgage” shall mean all mortgages,
deeds of trust, ground leases and other such encumbrances now or hereafter
placed upon the Building or any part thereof with the written consent of
Landlord, and all renewals, modifications, consolidations, replacements or
extensions thereof, and all indebtedness now or hereafter secured thereby and
all interest thereon.

 

(k)                                   “Operating Expenses” shall mean all
operating expenses of any kind or nature which are necessary, ordinary or
customarily incurred in connection with the operation, maintenance or repair of
the Building as determined by Landlord.

 

17

 

Operating Expenses
shall include, but not be limited to:

 

1.1.                            costs of supplies, including, but not
limited to, the cost of relamping all Building standard lighting as the same
may be required from time to time;

 

1.2.                            costs incurred in connection with
obtaining and providing energy for the Building, including, but not limited to,
costs of propane, butane, natural gas, steam, electricity, solar energy and
fuel oils, coal or any other energy sources;

 

1.3.                            costs of water and sanitary and storm
drainage services;

 

1.4.                            costs of janitorial and security
services;

 

1.5.                            costs of general maintenance and repairs,
including costs under HVAC and other mechanical maintenance contracts and
maintenance, repairs and replacement of equipment and tools used in connection
with operating the Building;

 

1.6.                            costs of maintenance and replacement of
landscaping;

 

1.7.                            insurance premiums, including fire and
all-risk coverage, together with loss of rent endorsements, the part of any
claim required to be paid under the deductible portion of any insurance
policies carried by Landlord in connection with the Building (where Landlord is
unable to obtain insurance without such deductible from a major insurance
carrier at reasonable rates), public liability insurance and any other
insurance carried by Landlord on the Building, or any component parts thereof
(all such insurance shall be in such amounts as may be required by any holder
of a Mortgage or as Landlord may reasonably determine);

 

1.8.                            labor costs, including wages and other
payments, costs to Landlord of worker’s compensation and disability insurance,
payroll taxes, welfare fringe benefits, and all legal fees and other costs or
expenses incurred in resolving any labor dispute;

 

1.9.                            professional building management fees
required for management of the Building;

 

1.10.                      legal, accounting, inspection, and other
consultation fees (including, without limitation, fees charged by consultants
retained by Landlord for services that are designed to produce a reduction in
Operating Expenses or to reasonably improve the operation, maintenance or state
of repair of the Building) incurred in the ordinary course of operating the
Building or in connection with making the computations required hereunder or in
any audit of operations of the Building;

 

1.11.                      the costs of capital improvements or
structural repairs or replacements made in or to the Building in order to
conform to changes, subsequent to the date of this Lease, in any applicable
Laws (herein “Required Capital Improvements”) or the costs incurred by Landlord
to install a new or replacement capital item for the purpose of reducing Operating
Expenses (herein “Cost Savings Improvements”), and a reasonable reserve for all
other capital improvements and structural repairs and replacements reasonably
necessary to permit Landlord to maintain the Building in its current class. The
expenditures for Required Capital Improvements and Cost Savings Improvements
shall be amortized over the useful life of such capital improvement or
structural repair or replacement (as determined by Landlord). All costs so
amortized shall bear interest on the unamortized balance at the rate of twelve
percent (12%) per annum or such higher rate as may have been paid by Landlord
on funds borrowed for the purpose of constructing these capital improvements.

 

In making any
computations contemplated hereby, Landlord shall also be permitted to make such
adjustments and modifications to the provisions of this paragraph and Article 4
as shall be reasonable and necessary to achieve the intention of the parties
hereto.

 

18

 

(l)                                     “Rent” shall have the meaning specified
therefor in Article 3.

 

(m)                               “Tax” or “Taxes” shall mean:

 

1.1.                             all real property taxes and assessments
levied against the Building by any governmental or quasi-governmental
authority. The foregoing shall include all federal, state, county, or local
governmental, special district, improvement district, municipal or other
political subdivision taxes, fees, levies, assessments, charges or other
impositions of every kind and nature, whether general, special, ordinary or extraordinary,
respecting the Building, including without limitation, real estate taxes,
general and special assessments, interest on any special assessments paid in
installments, transit taxes, water and sewer rents, taxes based upon the
receipt of rent, personal property taxes imposed upon the fixtures, machinery,
equipment, apparatus, appurtenances, furniture and other personal property used
in connection with the Building which Landlord shall pay during any calendar
year, any portion of which occurs during the Term (without regard to any
different fiscal year used by such government or municipal authority except as
provided below; provided, however, any taxes which shall be levied on the
rentals of the Building shall be determined as if the Building were Landlord’s
only property, and provided further that in no event shall the term “taxes or
assessment,” as used herein, include any net federal or state income taxes
levied or assessed on Landlord, unless such taxes are a specific substitute for
real property taxes. Such term shall, however, include gross taxes on rentals.
Expenses incurred by Landlord for tax consultants and in contesting the amount
or validity of any such taxes or assessments shall be included in such
computations.

 

1.2.                             all “assessments”, including so-called
special assessments, license tax, business license fee, business license tax,
levy, charge, penalty or tax imposed by any authority having the direct power
to tax, including any city, county, state or federal government, or any school,
agricultural, lighting, water, drainage, or other improvement or special
district thereof, against the Premises or the Building or any legal or
equitable interest of Landlord therein. For the purposes of this Lease, any
special assessments shall be deemed payable in the maximum number of
installments as is permitted by Law, whether or not actually so paid. If as of
the Commencement Date the Building has not been fully assessed as a completed
project, for the purpose of computing taxes for any adjustment required herein
or under Article 4, taxes shall be adjusted by Landlord, as of the date on
which the adjustment is to be made, to reflect full completion of the Building
including all standard Tenant finish work. If the method of taxation of real
estate prevailing to the time of execution hereof shall be, or has been
altered, so as to cause the whole or any part of the taxes now, hereafter or
theretofore levied, assessed or imposed on real estate to be levied, assessed
or imposed on Landlord, wholly or partially, as a capital levy or otherwise, or
on or measured by the rents received therefrom, then such new or altered taxes
attributable to the Building shall be included within the term real estate
taxes, except that the same shall not include any enhancement of said tax
attributable to other income of Landlord. All of the preceding clauses M (1.1
and 1.2) are collectively referred to as the “Tax” or “Taxes”.

 

ARTICLE 30. MISCELLANEOUS PROVISIONS

 

A.                                    Rules and
Regulations. Tenant
shall comply with all of the rules and regulations promulgated by Landlord
from time to time for the Building. A copy of the current rule and
regulations is attached hereto as Exhibit D.

 

B.                                    Execution of Lease. If more than one person or entity
executes this Lease as Tenant, each such person or entity shall be jointly and
severally liable for observing and performing each of the terms, covenants,
conditions and provisions to be observed or performed by Tenant.

 

C.                                    Notices. All notices under this Lease shall be in
writing and will be deemed sufficiently given for all purposes if, to Tenant,
by delivery to Tenant at the Premises during the hours the Building is open for
business or by certified mail, return receipt requested or by overnight
delivery service (with one acknowledged receipt), to Tenant at the address set
forth below, and if to Landlord, by certified mail, return receipt requested or
by overnight delivery service (with one acknowledged receipt), at the addresses
set forth below.

 

Landlord:                                                                                              at address shown in Article 1, item
F.

 

with a copy to:                                                                 Building Manager at address shown in Article 1,
item G.

 

19

 

Tenant:                                                                                                       at address shown in Article 1, item
B.

 

with copy to:                                                                          Brian Cho

Senior
Vice President/CFO 

Wilshire
State Bank 

3200
Wilshire Blvd.

 

Los
Angeles, CA. 90010

 

D.                                     Transfers. The term “Landlord” appearing herein
shall mean only the owner of the Building from time to time and, upon a sale or
transfer of its interest in the Building, the then Landlord and transferring
party shall have no further obligations or liabilities for matters accruing
after the date of transfer of that interest and Tenant, upon such sale or
transfer, shall look solely to the successor owner and transferee of the
Building for performance of Landlord’s obligations hereunder.

 

E.                                       Relocation. Deleted.

 

F.                                       Tenant Financial
Statements. Upon
the written request of Landlord, Tenant shall submit financial statements for
its most recent financial reporting period and for the prior Lease Year.
Landlord shall make such request no more than twice during any Lease Year. All
such financial statements shall be certified as true and correct by the
responsible officer or partner of Tenant and if Tenant is then in default
hereunder, the financial statements shall be certified by an independent
certified public accountant.

 

G.                                     Relationship of the
Parties. Nothing
contained in this Lease shall be construed by the parties hereto, or by any
third party, as constituting the parties as principal and agent, partners or
joint venturers, nor shall anything herein render either party (other than a
guarantor) liable for the debts and obligations of any other party, it being understood
and agreed that the only relationship between Landlord and Tenant is that of
landlord and tenant.

 

H.                                    Entire Agreement;
Merger.  This Lease embodies the entire agreement and
understanding between the parties respecting this Lease and the Premises and
supersedes all prior negotiations, agreements and understandings between the
parties, all of which are merged herein. No provision of this Lease may be
modified, waived or discharged except by an instrument in writing signed by the
party against which enforcement of such modification, waiver or discharge is
sought.

 

I.                                          No Representation by
Landlord.   Neither Landlord nor any agent of
Landlord has made any representations, warranties, or promises with respect to
the Premises or the Building except as expressly set forth herein.

 

J.                                       Limitation of
Liability.  Notwithstanding any provision in this
Lease to the contrary, under no circumstances shall Landlord’s liability or
that of its directors, officers, employees and agents for failure to perform
any obligations arising out of or in connection with this Lease or for any
breach of the terms or conditions of this Lease (whether written or implied)
exceed Landlord’s equity interest in the Building. Any judgments rendered
against Landlord shall be satisfied solely out of proceeds of sale of
Landlord’s interest in the Building. No personal judgment shall lie against
Landlord upon extinguishment of its rights in the Building and any judgments so
rendered shall not give rise to any right of execution or levy against
Landlord’s assets. The provisions hereof shall inure to Landlord’s successors
and assigns including any Lender. The foregoing provisions are not intended to
relieve Landlord from the performance of any of Landlord’s obligations under
this Lease, but only to limit the personal liability of Landlord in case of
recovery of a judgment against Landlord; nor shall the foregoing be deemed to
limit Tenant’s rights to obtain injunctive relief or specific performance or
other remedy which may be accorded Tenant by law or under this Lease. If Tenant
claims or asserts that Landlord has violated or failed to perform a covenant
under this Lease, Tenant’s sole remedy shall be an action for specific
performance, declaratory judgment or injunction and in no event shall Tenant be
entitled to any money damages in any action or by way of set off, defense or
counterclaim and Tenant hereby specifically waives the right to any money
damages or other remedies for any such violation or failure.

 

20

 

IN WITNESS WHEREOF, and intending to be legally bound
hereby, the parties have duly executed this Lease with the Exhibits attached
hereto, as of this 3rd day
of March, 2005.

 

 

	
  Attest or Witness:

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  9801 WESTCHASE, LTD., a Texas limited partnership

  
	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
  9801 Westchase, Ltd., a Texas limited partnership, its 

  
	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Vahid
  Tabrizi

  
	
   

  	
   

  	
   

  	
  Vahid Tabrizi,
  it’s Partner and 

  Attorney in Fact for General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  March 3, 2005

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Attest or Witness:

  	
  TENANT:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WILSHIRE STATE BANK, a
  California State Bank

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
  By:

  	
  /s/ Brian Cho

  
	
   

  	
   

  	
   

  	
  Brian Cho/Senior
  Vice President/CFO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  2-22-05

  
							

 

22

 

Certificate of Tenant

(If A Corporation or Partnership)

 

I, Brian E. Cho, Secretary or General Partner of Wilshire State Bank, Tenant,
hereby certify that the officers executing the foregoing Lease on behalf of
Tenant is/are duly authorized to act on behalf of and bind the Tenant.

 

 

	
   

  	
  /s/ Brian E. Cho

  
	
   

  	
  Secretary
  or General Partner 

  
	
  (Corporate
  Seal)

  	
   

  

 

23

 

 

	
  

  	
  

  
	
  

  	
   

  P.M. Realty Group

  Commercial
  Property Management & Leasing

   

  Leasing Mike Martin - Ph. 281 759 0457 

  Management Maureen Watson - Ph. 713 785 3895

  	
   

   

   

   

  06.09.2004

  Revised 06.25.2004

  
				

 

 

EXHIBIT B

 

WORK LETTER
AGREEMENT

 

Mar.
3, 2005

 

	
  TO:

  	
  Wilshire
  State Bank

  
	
   

  	
  9801
  Westheimer, Suite 801

  
	
   

  	
  Houston,
  Texas 77042

  
	
   

  	
   

  
	
  RE:

  	
  Premises
  located at 9801 Westheimer, Suite 801

  

 

Gentlemen:

 

Simultaneously with the execution of this Work
Letter Agreement, you (“Tenant”) and 9801 Westchase, Ltd. (“Landlord”) are
entering into a new Lease (the “Lease”) pertaining to the space referred to
above (the “Premises”).

 

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

 

Tenant’s Plans

 

1.                                        Tenant desires
Landlord to perform certain leasehold improvement work (the “Work”) in the
Premises pursuant to the following:

 

A.                                   Building
Standard paint throughout the Premises.

 

B.                                     Installation of
building standard carpet and 4” cove base throughout the Premises.

 

C.                                     Ensure the mini
blinds are in good working condition.

 

The Work has been approved by Landlord and Tenant
but such approval by Landlord shall not constitute any warranty by Landlord to
Tenant of the adequacy of the design for Tenant’s intended use of the Premises
nor shall Landlord’s approval of the Plan create any liability or
responsibility on the part of Landlord for compliance with applicable statutes,
ordinances, regulations, laws, codes and industry standards relating to
handicap discrimination (including without limitation, the Americans with
Disabilities Act).

 

Working Drawings

 

2.                                        If necessary
for the performance of the Work, Landlord, at its expense, shall prepare final Working
Drawings and specifications for the Work (the “Working Drawings”) based upon
and consistent with the Plan. Tenant shall approve the Working Drawings within three
(3) days after receipt of same from Landlord. Upon approval by both
Landlord and Tenant, the working drawings shall be deemed the Final Drawings.

 

Performance of the Work

 

3.                                        Except as
hereinafter provided to the contrary, Landlord, at its expense, shall perform
the Work shown on the Plan and Working Drawings using (except as may be stated
or shown in the Plan or the Working Drawings) building standard materials and
quantities (“Building Standards”). Tenant shall not be entitled to any credit
or payment from

 

1

 

Landlord
for any Building Standards or any non-standard Work not utilized by Tenant.
Tenant shall pay for any and all additional costs and expenses associated with
any above building standard finishes, special/additional work which is not
approved prior to the approval of Final Drawings and/or from any delays in the
Work occasioned by Tenant.

 

Substantial
Completion

 

4.                                       Landlord shall cause the Work to be
“substantially completed” as soon as reasonably possible, subject to delays
described in Article V of the Lease and delays described in Paragraph 5 of
this Work Letter Agreement. The Work shall be considered “substantially completed”
for all purposes under this Work Letter Agreement and the Lease if and when Landlord’s
architect or Manager certifies that the Work has been completed (except for minor
finish-out and “punchlist” items) in substantial compliance with the Plans and,
if applicable, the Working Drawings, or when Tenant first takes occupancy of
the Premises, whichever first occurs. If the Work is delayed for any reason
(other than a delay specified in Paragraph 6 below), the Lease shall remain in
effect, Landlord shall have no liability to Tenant as a result of any delay in
occupancy, and the Commencement Date of the Lease shall be extended (subject to
Paragraph 5 below) to the date on which the Work is substantially completed or
otherwise defined in the Amendment.

 

Tenant
Delays

 

5.                                       The Commencement Date of the Lease will
be the date which is six (6) weeks following the date on which any
required building permits are issued (or if no building permits are required
for the Work, the date the Lease is fully executed by both parties) if the Work
has not been substantially completed on said date by reason of any delay
attributable to Tenant, including without limitation:

 

(i)                                     the failure of Tenant to finalize the
Plan and/or Working Drawings as required under Paragraph 1 and 2 above; or

 

(ii)                                  Tenant’s requirements for special work or
materials, finishes, or installations other than the Building Standards which
are not readily available; or

 

(iii)                                the performance of any other work in the Premises by
any person, firm or corporation employed by or on behalf of Tenant, or any
failure to complete or delay in completion of such work; or

 

(iv)                              any other act or omission of Tenant.

 

Additional
Work

 

6.                                       Upon Tenant’s request and submission by
Tenant (at Tenant’s sole cost and expense) of the necessary information and/or
plans and specifications for work other than the Work specified in the Plan and
Working Drawings (the “Additional Work”), Landlord may, at its election,
perform the Additional Work, at Tenant’s sole cost and expense. Prior to commencing
any Additional Work requested by Tenant, Landlord shall submit to Tenant a
written statement of the cost of such Additional Work which cost shall include
a 15% add-on charge for Landlord’s field supervision, administration and
overhead and a proposed Tenant Extra Order (the “TEO”) for Additional Work in
the standard form then in use by Landlord. If Tenant shall fail to enter into
said TEO within one (1) week after Tenant’s receipt thereof, Landlord
shall proceed to do only the Work specified in the Plan and Working Drawings.
Tenant agrees to pay to Landlord, concurrently with its execution of the TEO,
the entire cost of the Additional Work as shown in the statement delivered by
Landlord.

 

2

Tenant
Access

 

7.                                       Landlord, in Landlord’s discretion and
upon request by Tenant, will grant to Tenant and Tenant’s agents a license to
enter the Premises prior to the Commencement Date in order that Tenant may do
other work required by Tenant to make the Premises ready for Tenant’s use and
occupancy. It shall be a condition to the grant by Landlord and continued
effectiveness of such license that:

 

(a)                                  Tenant shall give to Landlord not less
than three (3) days’ prior written notice of its request to have such
access to the premises, which notice shall contain and/or shall be accompanied
by: (i) a description of and schedule for the work to be performed by
those persons and entities for whom and which such access is being requested; (ii) the
names and addresses of all contractors, subcontractors and material suppliers
for whom and which such early access is being requested and the approximate
number of individuals, itemized by trade, who will be present in the Premises; (iii) copies
of all contracts pertaining to the performance of the work for which such early
access is being requested; (iv) copies of all plans and specifications
pertaining to the work for which such access is being requested; (v) copies
of all licenses and permits required in connection with the performance of the
work for which such access is being requested; and (vi) certificates of
insurance (in amounts and with insured parties satisfactory to Landlord) and
instruments of indemnification against all claims, costs, expenses, damages and
liabilities which may arise in connection with such work. All of the foregoing
shall be subject to Landlord’s approval, which shall not be unreasonably
withheld.

 

(b)                                 Such early access shall be subject to
scheduling by Landlord.

 

(c)                                  Tenant’s agents, contractors, workmen,
mechanics, suppliers and invitees shall work in harmony and not interfere with
Landlord and Landlord’s agents in performing the Work and any Additional Work
in the Premises, Landlord’s work in other premises and in common areas of the
Building, or the general operation of the Building. If at any time such entry
shall cause or threaten to cause such disharmony, Landlord may withdraw such
license upon twenty-four (24) hours’ prior written notice to Tenant.

 

Any such entry
into and occupation of the Premises by Tenant shall be deemed to be under all
of the terms, covenants, conditions and provisions of the Lease, excluding only
the covenant to pay Rent and specifically including the provisions of Article V
thereof. Landlord shall not be liable for any injury, loss or damage which may
occur to any of Tenant’s work or installations made in the Premises or to
property placed therein prior to the commencement of the Term, the same being
at Tenant’s sole risk and liability. Tenant shall be liable to Landlord for any
damage to the Premises or to any portion of the Work caused by Tenant or any of
Tenant’s employees, agents, contractors, workmen or suppliers. In the event the
performance of the work by Tenant, its agents, employees or contractors causes
extra costs to Landlord or requires the use of elevators during hours other
than 9:00 a.m. to 11:00 a.m. or 2:00 p.m. to 4:30 p.m. on
Monday through Friday (except holidays), Tenant shall reimburse Landlord for
the entire extra cost and the cost incurred by Landlord for the engineers or
operators under applicable union regulations or contracts, if any.

 

8.                                       The terms and provisions of the Lease,
insofar as they are applicable to this Work Letter Agreement, are hereby
incorporated herein by reference.

 

3

 

9.                                       All amounts payable by Tenant to Landlord
hereunder shall be deemed to be Rent under the Lease and upon any default in
the payment of same, Landlord shall have all of the rights and remedies
provided for in the Lease.

 

 

	
  Attest or Witness:

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9801 WESTCHASE, LTD., a Texas limited partnership

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
  By:

  	
  9801 Westchase, Ltd., a Texas limited partnership, its 

  
	
   

  	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
  /s/ Vahid Tabrizi

  
	
   

  	
   

  	
   

  	
   

  	
  Vahid Tabrizi, it’s Partner
  and 

  Attorney in Fact for General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
  March 3, 2005

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attest or Witness:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WILSHIRE STATE BANK, a
  California State Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  	
  By:

  	
  /s/ Brian Cho

  
	
   

  	
   

  	
   

  	
   

  	
  Brian Cho/Senior Vice
  President/CFO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
  2-22-05

  

 

4

 

EXHIBIT C

 

TERMINATION
OPTION

 

This  Exhibit is  attached  to  and  a  part  of  that  certain  Lease  Agreement  dated  as  of March 3,
2005,  executed  by and between 9801 WESTCHASE, LTD., a Texas
limited partnership (“Landlord”) and Wilshire State Bank (“Tenant”). Any
capitalized term used but not defined herein shall have the meaning assigned to
it in the provisions designated in the Lease as the Supplemental Lease
Provisions. Landlord and Tenant mutually agree as follow:

 

Notwithstanding
any provision in this Lease to the contrary, In the event Tenant begins
operation of a full service retail banking facility within a twenty (20) mile
radius of Westchase Bank Builiding, Tenant shall have the right to terminate
this Lease pursuant to the following terms and condition precedent:

 

Tenant shall exercise such termination right, if at
all, by delivering to Landlord written notice three (3) months prior to the
Termination Date, specifying that Tenant elects to terminate this Lease
(“Termination Notice”). The Termination Notice must be sent by United States
certified mail, return receipt requested. The Termination Notice must be sent
together with ther Termination Fee described below and further conditioned upon
Tenant not then being in default at the time of such notice nor being in
default at any time thereafter.

 

In order to validly exercise this Termination
Option, Tenant shall pay to Landlord a fee (“Termination Fee”) in the amount
equal to the sum of: (a) total unamortized Landlord costs associated with
this Lease; (b) four (4) months of Monthy Rent as specified in Article l.K
of the Lease. The Termination Fee must be paid to Landlord at the time the
written notice exercising this Termination Option is provided to Landlord.
Payment of such Termination Fee shall be a condition to Landlord’s rights under
Exhibit C of the Lease, and failure to pay such Termination Fee to Landlor
or timely terminate as described above, shall cause this Lease to remain in
full force and effect and the Tenant shall be deemed to have not given any
notice of termination to Landlord.

 

If Tenant requests in writing, Landlord shall
provide Tenant a breakdown of Landlord’s upfront costs for the entire Premises
within ninety (90) days following the Commencement Date.

 

1

 

EXHIBIT D

 

Building’s Rules and Regulations 

and Janitorial Specifications

 

(1)                                  The sidewalks, entrances, passages,
courts, elevators, vestibules, stairways, corridors or halls of the Building
shall not be obstructed or encumbered or used for any purpose other than
ingress and egress to and from the premises demised to any tenant or occupant.

 

(2)                                  No awnings or other projection shall be
attached to the outside walls or windows of the Building without the prior
consent of Landlord. No curtains, blinds, shades, or screens shall be attached
to or hung in, or used in connection with, any window or door of the premises
demised to any tenant or occupant, without the prior consent of Landlord. Such
awnings, projections, curtains, blinds, shades, screens or other fixtures must
be of a quality, type, design and color, and attached in a manner, approved by
Landlord.

 

(3)                                  No sign, advertisement, object, notice or
other lettering shall be exhibited, inscribed, painted or affixed on any part
of the outside or inside of the premises demised to any tenant or occupant of
the Building without the prior consent of Landlord. Interior signs on doors and
directory tables, if any, shall be of a size, color and style approved by
Landlord.

 

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

 

(5)                                  No show cases or other articles shall be
put in front of or affixed to any part of the exterior of the Building, nor
placed in the halls, corridors, vestibules or other public parts of the
Building.

 

(6)                                  The water and wash closets and other
plumbing fixtures shall not be used for any purposes other than those for which
they were constructed, and no sweepings, rubbish, rags, or other substances
shall be thrown therein. No tenant shall bring or keep, or permit to be brought
or kept, any inflammable, combustible, explosive or hazardous fluid, materials,
chemical or substance in or about the premises demised to such tenant.

 

(7)                                  No tenant or occupant shall mark, paint,
drill into, or in any way deface any part of the Building or the premises
demised to such tenant or occupant. No boring, cutting or stringing of wires
shall be permitted, except with the prior consent of Landlord, and as Landlord
may direct. No tenant or occupant shall install any resilient tile or similar
floor covering in the premises demised to such tenant or occupant except in a
manner approved by Landlord.

 

(8)                                  No bicycles, vehicles or animals of any
kind shall be brought into or kept in or about the premises demised to any
tenant. No cooking shall be done or permitted in the Building by any tenant
without the approval of the Landlord. No tenant shall cause or permit any
unusual or objectionable odors to emanate from the premises demised to such
tenant.

 

(9)                                  No space in the Building shall be used
for manufacturing, for the storage of merchandise, or for the sale of
merchandise, goods, or property of any kind at auction, without the prior
consent of Landlord.

 

(10)                            No tenant shall make, or permit to be
made, any unseemly or disturbing noises or disturb or interfere with other
tenants or occupants of the Building or neighboring buildings or premises
whether by the use of any musical instrument, radio, television set or other
audio device, unmusical noise, whistling, singing, or in any other way. Nothing
shall be thrown out of any doors or window.

 

(11)                            No additional locks or bolts of any kind
shall be placed upon any of the doors or windows, nor shall any changes be made
in locks or the mechanism thereof. Each tenant must, upon the termination of
its tenancy,

 

1

 

restore
to Landlord all keys of stores, offices and toilet rooms, either furnished to,
or otherwise procured by, such tenant.

 

(12)                          All removals from the Building, or the
carrying in or out of the Building or the premises demised to any tenant, of
any safes, freight, furniture or bulky matter of any description must take
place at such time and in such manner as Landlord or its agents may determine,
from time to time. Prior to all removals and/or deliveries, Tenant must notify
Landlord of same. Landlord reserves the right to inspect all freight to be
brought into the Building and to exclude from the Building all freight which
violates any of the Rules and Regulations or the provisions of such
tenant’s lease.

 

(13)                          No tenant shall use or occupy, or permit
any portion of the premises demised to such tenant to be used or occupied, as
an office for a public stenographer or typist, or to a barber or manicure shop,
or as an employment bureau. No tenant or occupant shall engage or pay any
employees in the Building, except those actually working for such tenant or
occupant in the Building, nor advertise for laborers giving an address at the
Building.

 

(14)                          No tenant or occupant shall purchase
spring water, ice, food, beverage, lighting maintenance, cleaning towels or
other like service, from any company or person not approved by Landlord. No
vending machines of any description shall be installed, maintained or operated
upon the premises demised to any tenant without the prior consent of Landlord.

 

(15)                          Landlord shall have the right to prohibit
any advertising by any tenant or occupant which, in Landlord’s opinion, tends
to impair the reputation of the Building or its desirability as a building for
offices, and upon notice from Landlord, such tenant or occupant shall refrain
from or discontinue such advertising.

 

(16)                          Landlord reserves the right to exclude
from the Building, between the hours of 6:00 P.M. and 8:00 A.M. on
business days and at all hours on Saturdays, Sundays and holidays, all persons
who do not present a pass to the Building signed by Landlord. Landlord will
furnish passes to persons for whom any tenant requests such passes. Each tenant
shall be responsible for all persons for whom it requests such passes and shall
be liable to Landlord for all acts of such persons.

 

(17)                          Each tenant, before closing and leaving
the premises demised to such tenant at any time, shall see that all entrance
doors are locked and all windows closed. Corridor doors, when not in use, shall
be kept closed.

 

(18)                          Each tenant shall, at its expense,
provide artificial light in the premises demised to such tenant for Landlord’s
agents, contractors and employees while performing janitorial or other cleaning
services and making repairs or alterations in said premises.

 

(19)                          No premises shall be used, or permitted
to be used for lodging or sleeping, or for any immoral or illegal purposes.

 

(20)                          The requirements of tenants will be
attended to only upon application at the office of Landlord. Building employees
shall not be required to perform, and shall not be requested by any tenant or
occupant to perform, and work outside of their regular duties, unless under
specific instructions from the office of Landlord.

 

(21)                          Canvassing, soliciting and peddling in
the Building are prohibited and each tenant and occupant shall cooperate in
seeking their prevention.

 

(22)                          There shall not be used in the Building,
either by any tenant or occupant or by their agents or contractors, in the
delivery or receipt of merchandise, freight, or other matter, any hand trucks
or other means of conveyance except those equipped with rubber tires, rubber
side guards and such other safeguards as Landlord may require.

 

2

 

(23)                          If the Premises demised to any tenant
become infested with vermin, such tenant, at its sole cost and expense, shall
cause its premises to be exterminated, from time to time, to the satisfaction
of Landlord, and shall employ such exterminators therefor as shall be approved
by Landlord.

 

(24)                          No premises shall be used, or permitted
to be used, at any time, without the prior approval of Landlord, as a store for
the sale or display of goods, wares or merchandise of any kind, or as a
restaurant, shop, booth, bootblack or other stand, or for the conduct of any
business or occupation which predominantly involves direct patronage of the
general public in the premises demised to such tenant, or for manufacturing or
for other similar purposes.

 

(25)                          No tenant shall clean any window in the
Building from the outside.

 

(26)                          No tenant shall move, or permit to be
moved, into or out of the Building or the premises demised to such tenant, any
heavy or bulky matter, without the specific approval of Landlord. If any such
matter requires special handling, only a qualified person shall be employed to
perform such special handling. No tenant shall place, or permit to be placed,
on any part of the floor or floors of the premises demised to such tenant, a
load exceeding the floor load per square foot which such floor was designed to
carry and which is allowed by law. Landlord reserves the right to prescribe the
weight and position of safes and other heavy matter, which must be placed so as
to distribute the weight. All deliveries and/or removal of heavy or bulky
matter shall be scheduled after Normal Building Hours.

 

(27)                          Landlord shall provide and maintain an
alphabetical directory board in the first floor (main lobby) of the Building
and no other directory shall be permitted without the prior consent of
Landlord. Each tenant shall be allowed one line on such board unless otherwise
agreed to in writing.

 

(28)                          With respect to work being performed by a
tenant in its premises with the approval of Landlord, the tenant shall refer
all contractors, contractors’ representatives and installation technicians to
Landlord for its supervision, approval and control prior to the performance of
any work or services. This provision shall apply to all work performed in the
Building including installation of telephones, telegraph equipment, electrical
devices and attachments, and installations of every nature affecting floors,
walls, woodwork, trim, ceilings, equipment and any other physical portion of
the Building.

 

(29)                          Landlord shall not be responsible for
lost or stolen personal property, equipment, money, or jewelry from the
premises of tenants or public rooms whether or not such loss occurs when the
Building or the premises are locked against entry.

 

(30)                          Landlord shall not permit entrance to the
premises of tenants by use of pass keys controlled by Landlord, to any person
at any time without written permission from such tenant, except employees,
contractors, or service personnel directly supervised by Landlord and employees
of the United States Postal Service.

 

(31)                          Each tenant and all of tenant’s employees
and invitees shall observe and comply with the driving and parking signs and
markers on the Land surrounding the Building, and Landlord shall not be
responsible for any damage to any vehicle towed because of noncompliance with
parking regulations. Tenant shall advise all employees that parking in the
surface areas is strictly prohibited, at all times. Surface parking areas are
for the sole and exclusive use of all visitors to the Building, with a two-hour
maximum. Tenant and their employees will be subject to towing and/or parking
violation fees, which will be at the Landlord’s sole discretion. All visitors
that will exceed the two-hour limit must register their vehicles with the
Building Manager. Tenant and it’s employees must register all vehicles that
will be on the Property.

 

(32)                          Without Landlord’s prior approval, no
tenant shall install any radio or television antenna, loudspeaker, music system
or other device on the roof or exterior walls of the Building or on common
walls with adjacent tenants.

 

(33)                          Each tenant shall store all trash and
garbage within its premises or in such other areas specifically designated by
Landlord. No materials shall be placed in the trash boxes or receptacles in the
Building or

 

3

 

Common Areas
unless such materials may be disposed of in the ordinary and customary manner
of removing and disposing of trash and garbage and will not result in a
violation of any law or ordinance governing such disposal. All garbage and
refuse disposal shall be only through entryways and elevators provided for such
purposes and at such times as Landlord shall designate.

 

No tenant shall
employ any persons other than the janitor of Landlord for the purpose of
cleaning its premises without the prior consent of Landlord. No tenant shall
cause any unnecessary labor by reason of its carelessness or indifference in
the preservation of good order and cleanliness. Janitor service shall include
ordinary dusting and cleaning by the janitor assigned to such work and shall
not include beating of carpets or rugs or moving of furniture or other special
services. Janitor service shall be furnished Mondays through Fridays, legal
holidays excepted; janitor service will not be furnished to areas which are
occupied after 9:30 P.M. Window cleaning shall be done only by Landlord,
and only between 6:00 A.M and 5:00 P.M.

 

4

 

EXHIBIT E

 

Commencement
Date Confirmation

 

DECLARATION BY LANDLORD AND TENANT AS TO DATE
OF DELIVERY AND

ACCEPTANCE OF POSSESSION OF PREMISES

 

Attached to and made a part of the Lease
dated the        day of                       ,                ,
entered into and by 9801 Westchase, Ltd. as LANDLORD, and                                                     as
TENANT.

 

LANDLORD
AND TENANT do hereby declare that possession of the Premises was accepted by
TENANT on the
              day
of                ,             .
The Premises required to be constructed and finished by LANDLORD in accordance
with the provisions of the Lease have been satisfactorily completed by LANDLORD
and accepted by TENANT, the Lease is now in full force and effect, and as of
the date hereof, LANDLORD has fulfilled all of its obligations under the Lease.
The Lease Commencement Date is hereby established as                             ,                           .
The Term of this Lease shall terminate on                                        ,                      .

 

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  9801 WESTCHASE, LTD., a Texas limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  9801 Westchase, Ltd., a Texas limited partnership, its General
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
   

  	
  Vahid Tabrizi, it’s Partner
  and 

  Attorney in Fact for
  General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  

 

1

 

EXHIBIT F

 

Renewal Option

 

Tenant
shall have one (1) option to extend this Lease for an additional period of
three (3) years. The extended term shall be on all of the same terms and
conditions of this Lease with the exception that the Monthly Rent for the
extended term shall be the then prevailing rental rate being charged by
comparable buildings in the Westchase sub market. In order for Tenant to
exercise this option to extend, Tenant must give Landlord written notice of its
election to extend at least six (6) months (but no sooner than twelve [12]
months) prior to the normal expiration date of the Lease, time being of the
essence, which notice shall request that Landlord provide Tenant with the
rental rate for the extended term. Landlord shall furnish Tenant with the rental
rate for the extended term within fifteen (15) business days of receipt of
Tenant’s notice to extend. If the parties have not signed a written amendment
to this Lease confirming the extended term and the corresponding rental rate at
least four (4) months prior to the normal expiration date of the Lease,
time being of the essence, then Tenant’s extension of the Lease shall be
automatically null and void and this Lease shall expire as if the extension
option had never been exercised.

 

Tenant agrees to
execute such additional documents, if any, as Landlord may reasonably require
regarding any such extension. The foregoing option to extend is given on the
express condition that Tenant may not exercise the foregoing option to extend
if it shall be in default under the Lease beyond any applicable cure period.
Any attempted exercise while in default shall be null and void and of no
effect. Tenant has no other option(s) to extend the term of this Lease
except as set forth in this paragraph.

 

1Exhibit 10.31

 

AMENDMENT OF LEASE AGREEMENT

 

THIS AMENDMENT OF LEASE AGREEMENT (this “Amendment”)
is made as of this 25 day of February, 2010 (the “Effective Date”) by among
Young H. Lim and Injoo Baik (“Landlord”), and Wilshire State Bank (“Tenant”).

 

Landlord and Tenant are parties to that certain Lease
Agreement dated as of May 25, 2006 (the “Offer to Lease”) and dated as of
January 25, 2008 (the Exercise of Option to Renew) for premises at 7535 Little
River Turnpike, Suite 310A, Annandale, VA 22003, (the “Premises”).

 

Tenant desires to extend the lease term for two (2)
more years from the termination dated as of May 31, 2010 as follows,

 

June, 2010 to May, 2011 - $2,105.75 per monthly 

June, 2011 to May, 2012 - $2,189.98 per monthly

 

With signing on this, the parties have caused this
Amendment to be executed as of the day and year first above written.

 

 

	
  Tenant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ [ILLEGIBLE]

  	
   

  	
   

  
	
  Wilshire State Bank

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Landlord: Individually

  	
   

  	
  Landlord: Individually 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Young H. Lim

  	
   

  	
  Injoo Baik

  

 

 

COMMERCIAL LEASE AGREEMENT (OFFICE USE)

 

This Lease Agreement (hereinafter the “Lease”) is
made effective this 26th Day of May, 2006, by and between Young H. Lim and
Injoo Baik (hereinafter called “Landlord”) and Wilshire State Bank (hereinafter
called “Tenant”).

 

1.                                     Premises.     Landlord hereby rents to Tenant and Tenant
does hereby lease from Landlord the improved property known as 7535 Little River Turnpike #310A, Annandale, Virginia
22003. containing approximately Eleven Hundred Fifty(1150) square
feet Gross Leasable Area.

 

2.                               Deposit.     Tenant
shall pay Landlord a deposit of Eighteen
Hundred ($1,800.00) Dollars. The Landlord shall immediately place
all deposit moneys into an non-interest bearing escrow account upon receipt.
The money accrued in this escrow account will be returned to the Tenant upon
the expiration of this Lease. If the Landlord terminates this Lease under
provision eight of this Lease, Landlord shall collect any money due under the
terms of rent payment and return the remaining balance to the Tenant on or
before the expiration of ten (10) days following termination.

 

3.                             Payment of
Rent.     For the period of the commencing from the 26th day of May, 2006 and terminating on
the 25th day of May, 2008. The
Tenant agrees to pay net to the Landlord an Monthly Minimum Rent of Eighteen Hundred (1,800.00) Dollars for the
period (26th)day
of May, 2006 to 25th day of May
2007, The Monthly Minimum shall be increased Eighteen Hundred Seventy Two ($1,872.00) Dollars for
the period 26th day of May, 2007 to 25th day of May 2008.  No late payment penalty
shall apply unless payment has not been tendered by the tenant to the landlord
by the eleventh day of the month. If the tenant renders payment on the eleventh
(11th) day of the month or later, the landlord may collect a late payment
penalty in the amount of ten percent (10%) of the rent due and owing.

 

4.                       Additional
Rent.     All charges, costs and expenses which the
Tenant is required to pay hereunder, together with all interests and penalties
that may accrue thereon in the event of the Tenant’s failure to pay such
amounts plus any related costs that have incurred due to breach of Tenant’s
obligations shall be considered additional rent and the Landlord shall have all
the rights and remedies with respect thereto as the Landlord has for the
non-payment of the basic rent.

 

5.                       Duration and Renewal.     The
duration of this lease is Two (2) years and
Tenant shall have One (1) additional renewals under the
same terms of Two (2) years. The lease shall be increased Four (4%) Percent of each
year following the expiration of this lease.

 

6.                       Alterations and
Improvements.     Tenant shall not make any alterations to the
premises or to the outside of the building, including but not limited to the
outside walls, without the written consent of the Landlord. The Landlord shall install the Wooden Blinder for
windows and does professional steam cleaning on the floor.

 

7.                               Landlord’s Obligation to
Repair and Replace.     Landlord shall, at his own expense, make all
necessary repairs and replacements to the leased premises and to the pipes,
heating system, air conditioning, plumbing, windows, glasses, and inside as
well as the outside of the leased premises including the steps, if any, and all
other fixtures and appliances and appurtenances used in connection with the
leased premises.  In the event the
Landlord does not

 

1

 

make such necessary repairs or maintenance within
fifteen (15) days of notice from the Tenant, the Tenant shall have the option
of making such repairs or maintenance for the Landlord’s account and the
resulting expenses shall constitute and be deductible from rent. All
replacements that the Landlord makes shall be at lease as equal to the original
work.

 

8.                        Tenant’s
Obligation to Comply with Applicable Law.   
 Tenant, at Tenant’s sole expense,
shall comply with all laws and regulations of federal, state and local
authorities. Furthermore, Tenant shall obtain necessary licenses to operate the
business on the said premises.

 

9.                        Insurance.     Tenant
shall carry at all times a general liability insurance of at least One Million
($l,000,000.00) naming both the Landlord and Tenant as the insured. In
addition, the Tenant shall maintain additional insurance insuring the contents
of the premises and any damage to the building that may have been caused by
fire, vandalism, malicious mischief, explosion and collapse, and any other
perils.

 

10.                           Destruction of
the Premises.     In the event the property is substantially
damaged by fire, storm or other events, making the premises untenable, the
lease shall terminate as of date of damage. However, in the event the premises
is declared partially untenable, without the fault of the Tenant, Landlord
shall restore the property buy not to exceed the proceeds of Fire and Extended
Coverage, which the Tenant shall acquire, with reasonable diligence and the
Lease shall continue to be in effect. Tenant shall have the said policy
endorsed to the Landlord.

 

11.                                    Permitted Uses.     The leased premises shall be used for a
Lending Office of the Wilshire State Bank and no other purpose.

 

12.                             Assignment and
Subletting.     The Tenant shall not assign or sublease this
Lease in whole or part without the written consent of the Landlord. However,
the Tenant shall be personally liable for the Lease during the entire remaining
term of the lease unless otherwise agreed by the parties. Further, the Landlord
reserves the right to revise the terms of this Lease in the event of the
aforesaid situations.

 

13.                             Landlord’s Exculpation.     The
Landlord shall not be liable for injury or damage to persons or property
occurring within inside of the leased property unless such injury or damage is
caused by the sole negligence of the Landlord or the Landlord’s failure to
comply with the terms of this lease. Tenant shall maintain liability and Fire
and Extended Coverage insurance throughout the Lease to protect the Landlord.

 

14.                             Indemnifications.     The
Tenant shall indemnify the Landlord against all liabilities, damages and other
expenses, including reasonable attorney’s fees for the Tenant’s negligence or
any failure of the Tenant’s failure to perform or comply with any covenant
required to be performed or complied with in this Lease.

 

15.                             Condemnation.     In the
event that said premises or any part thereof are taken for public use, eminent
domain, condemnation or other governmental legal proceedings, the Tenant does
hereby disclaim any and all rights, title, interest and estate in and to such
sum or sums which may be paid to the landlord as compensation for the taking of
the said premises or any part thereof. Furthermore, the Landlord may make
settlement with the said agencies without obtaining the permission form the
Tenant. In the event that only a portion of the leased premises are taken for
public use, then the parties shall have the option of either abating the rent
proportionately or canceling this lease.

 

16.                             Surrender of
Premises.     Tenant shall vacate the premises in good order
and repair the property in the same condition that it was first leased provided
that reasonable wear and tear

 

2

 

expected.
Upon removal of any trade fixtures, the Tenant shall repair all damage caused
by such removal.

 

17.                           Waivers.     It
is agreed that the waiver of the breach of any covenant or condition herein
contained, shall not be construed as the waiver of such covenants and
conditions or any subsequent breach thereof, unless such breach is waived in
writing by the Landlord.

 

18.                           Binding Effect.     This
Lease shall bind and insure to the benefit of the parties hereto, their
respective heirs, personal representatives, successor and assigns.

 

19.                           Default and
Cure.     In the event of default which is defined as
failure of the Tenant to comply with the terms and covenants of this Lease, the
Landlord shall give Tenant a Notice of Default and the Tenant shall have Ten (10) days
to cure any monetary default, including but not limited to the payment of rent
and payment of real estate taxes, insurance, sewage, and Fifteen (15) days for
non-monetary default. In the event that the Tenant does not cure such default
or take reasonably necessary steps to cure the same within the aforementioned
specified times or if there are more than two (2) defaults within a year,
the Landlord, at their option, may declare this Lease null and void and recover
all costs and damages, including reasonable attorney’s fees, costs of lawsuit
and administrative expenses.

 

20.                                       Liability.     The
undersigned Tenants shall be jointly and severally liable for all obligations
under this lease. In the event the Tenant is a corporation, a partnership, a
new corporation or partnership is formed or to be formed, the corporate name
has been changed, or for any reason that the leasehold interest is changed or
the business established under the lease is changed or incorporated, the Tenant
shall immediately notify the Landlord to have the said corporation added on to
the lease as additional Tenant. In the even the Tenant does not do the aforesaid,
it shall be deemed a default under the lease.

 

21.                              Maintenance.     Tenant
shall be liable for maintenance of both inside and outside of the premise,
except for the roof and exterior wall which the Landlord shall maintain. The Landlord
shall not maintain should such damage to the exterior wall or the roof is the
result from theft, vandalism or due to the fault of Tenant, Tenant’s agents,
invitees or other instances which do not constitute natural, ordinary wear and
tear. Tenant shall maintain the property in satisfactory condition, including
but not limited to collection of garbage snow removal and cleaning the inside
and outside of the leased premises.

 

22.                         Waiver of Jury
Trial.     Landlord and Tenant mutually waive trial by
jury from all claims related to this Lease and occupancy and use of the
premises.

 

23.                         Notices.     All
notices shall be sent to the following:

 

Landlord: Young H. Lim and Injoo Baik

2108 Spy Glass Ct.

Merced. CA 95340

 

Tenant: Wilshire State Bank

3200 Wilshire Blvd., #510

Los Angeles, CA 90010

 

24.                                   Governing Law.     This
Lease shall be construed under the laws of the State of Virginia. The parties
acknowledge that this Lease has been drafted, negotiated, made, delivered and
consummated in the State of Virginia. Tenant hereby waives any objection to the
venue of any action filled by Landlord against Tenant in any state or federal
court of the State of Virginia

 

3

 

and waives any claim of forum non convenience or for
transfer of any such action to any other court.

 

25.                                 Bankruptcy.     If
any transfer of Tenant’s interest in the premises created by this Lease shall
be made under execution or similar legal process, or a petition is filed by or
against Tenant to adjudicate Tenant bankrupt or insolvent under and federal or
state law, or if a receiver or Trustee shall be appointed for Tenant’s business
or property and such appointment is not vacated within ten (10) days, or
if a petition is filed by or against Tenant under any provision of federal or
state law for a corporate reorganization of Tenant or an arrangement with its
creditors, or if Tenant makes an assignment or deed of trust for the benefit of
its creditors or if any other manner Tenant’s interest under this Lease shall
pass to another by operation of law, then in any of said events, Tenant shall
be deemed to have committed a material breach of this Lease and Landlord may,
at its option, terminate this Lease and reenter the premises; but, not
withstanding such termination, Tenant shall remain liable for all rent and
damages which may be due at the time of such termination and for the liquidated
damages set forth elsewhere in this Lease. Nothing herein or in any other
sections of this lease shall be deemed to preclude landlord from obtaining the
maximum amount recoverable from Tenant under the law in any proceedings; tenant
hereby covenants that in the event of termination and reentry, tenant shall be
liable to Landlord for the maximum amount recoverable from Tenant under the law
pertaining to the proceeding resulting in such reentry or termination by the
Landlord.

 

26.                         Entire
Agreement.     This Lease constitutes the entire agreement
between the parties and no modifications shall be deemed effective unless in
writing and signed by both parties.

 

27.                         Brokers.     The
Landlord and the Tenant acknowledges that there are no brokers other than New
Star Realty & Inv. The Landlord agree to pay $1,800.00 to the New Star
Realty on the earliest of the date upon possession or the date of signing of
the lease for commission.

 

28.                                 Liens on
property.     Tenant shall not place any liens on the
premises or fixtures, whether statutory, mechanics or otherwise, and shall be
responsible financially or otherwise for removal of such liens, including all
costs and damages including attorney’s fees of the Landlord. However, by
signing this Lease, the Tenant gives the Landlord a lien on all Tenant’s
fixtures, equipments and personal property. Any property of Tenant remaining
after the termination of lease, default, or otherwise, shall be deemed to be
the property of the Landlord without due process of law and Landlord shall have
the right to sell the property to a third party. By signing this Lease, the
Tenant shall be deemed to have designated the Landlord its attorney-in-fact to carry
out the aforementioned deeds excluding all liabilities.

 

29.                          Default Rent.     If
payments or rent or additional rent are in arrears for more than ten (10) days,
(a) Landlord shall be entitled to the benefits of all laws of the State of
Maryland. The default interest rate payable by the Tenant to Landlord shall be
eighteen (18) percent per annum excluding late fees or other fees mentioned in
the aforesaid paragraphs under this Lease. Tenant shall pay Landlord all administrative
costs, out of pocket expenses including reasonable attorney’s fees and damages.

 

30.                          Termination.     If
Tenant defaults in payment of rent or additional rent or other under all terms
of the lease, Landlord, after five (5) days of written notice, shall have
the option of terminating the lease, and replace with new tenant and shall have
the right to exercise any and all remedy under this lease or under law or
equity. The Landlord’s rights are cumulative and shall not preclude Landlord
from exercising his rights as in the foregoing sentence. Tenant shall remain
liable in the aforesaid instances for any rent and damages which may be due or
sustained prior thereto and shall pay Landlord for all costs and expenses,
including but not limited to attorney’s and broker’s fees and expenses, paid or
incurred by Landlord in connection with: (i)

 

4

 

obtaining possession of the premises; (ii) removal and storage or
sale of tenant’s or other occupant’s property; (iii) replacing new tenant
with the whole or any part of the premises; (iv) repairing, altering,
renovating, partitioning, enlarging, remodeling or otherwise putting the
premises, either separately or as part of larger premise, into condition
acceptable to and reasonably necessary to obtain a new Tenant. In addition,
Tenant shall be liable for liquidated damages which is defined as monthly rent
and additional rent payable by Tenant hereunder, which shall be payable when
due, less the rent, if any received by Landlord from others to whom the
premises may be rented on such terms and condition and at such rental the
Landlord, in its sole discretion, shall deem proper. The obligations of Tenant
under this section shall survive: termination of this lease or reentry by
Landlord without termination until the fixed termination date under this lease
and I shall be binding upon Tenant until such date.

 

31.                         Mortgage
Subordination.     The holder of any mortgage or deed of trust
not existing or hereinafter placed upon the property shall have the right to
elect, at any time, whether this lease shall be subordinate to the operation
and effect of such mortgage or deed of trust or superior thereto, without the
necessity in either case for execution by Tenant, of any instrument other than
this Lease, and such election shall be binding upon Tenant. Tenant appoints the
Landlord its attorney-in-fact to execute all documents required for such
subordination.

 

32.                         Tenant Holding
Over.     If the Tenant shall not immediately surrender
possession of the premises at the termination of this lease, extension thereof
if any, or after notice of relocation, the Landlord shall have the option of
exercising any other remedies under this lease and/or under the law or equity
or at the Landlord’s option, Tenant shall become a tenant from month to month,
provided that rent shall be paid and accepted by the Landlord, in advance, at
double the rate of rental payable hereunder just prior to termination,
extension if given or notice or relocation. However, unless and until the
Landlord shall accept such rental from the Tenant, the Landlord shall continue
to be entitled to re-take possession of the premises without any prior notice
whatsoever, to Tenant. If the Tenant shall fail to surrender possession of the
premises immediately upon the expiration of the term hereof or the extension if
extended, the Tenant hereby agrees that all the obligations of the Tenant and
all rights of the Landlord applicable during the term of this Lease, notice of
relocation or the extension thereof if given shall be equally applicable during
such period of subsequent occupancy, whether or not a month to month tenancy
shall have been created as aforesaid.

 

33.                         Returned
Checks.     If Tenant’s check is returned for insufficient
fund or otherwise, the Tenant shall pay the Landlord $25.00 per check for
returned checks.

 

34.                         Joint and
Several liabilities.     Tenants acknowledge that they are jointly and
severally liable for all obligations under the Lease and any notice or process
on one Tenant shall be deemed to have been service or notice for all the
Tenants hereunder.

 

5

 

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

 

 

	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Young H.
  Lim, Landlord

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Injoo
  Baik, Landlord

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
  Wilshire
  State Bank, Tenant

  

 

6

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