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Exhibit 4.5    
    

THIS WARRANT OR ANY SECURITIES ACQUIRED UPON THE EXERCISE OF THIS WARRANT ARE "RESTRICTED SECURITIES" AS DEFINED IN THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"). THEREFORE THIS WARRANT AND ANY SECURITIES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OR THE SECURITIES LAW OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. THIS WARRANT AND ANY SECURITIES
ACQUIRED UPON THE EXERCISE OF THIS WARRANT ARE SUBJECT TO CERTAIN SIGNIFICANT RESTRICTIONS ON TRANSFER AND TO THE RIGHTS OF OTHER STOCKHOLDERS TO PURCHASE, OR COMPEL THE SALE OF, THIS WARRANT AND SUCH
SECURITIES ON THE TERMS AND CONDITIONS SET FORTH IN THE COMPANY'S SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, AND IN A CERTAIN AMENDED AND
RESTATED SHAREHOLDERS AGREEMENT, DATED AS OF DECEMBER 15, 2004, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, COPIES OF WHICH MAY BE OBTAINED FROM THE COMPANY. NO TRANSFER OF THIS WARRANT AND SUCH
SECURITIES WILL BE VALID OR REGISTERED ON THE BOOKS OF THE COMPANY UNLESS AND UNTIL THE TERMS OF ANY RESTRICTIONS CONTAINED IN THIS WARRANT, SUCH SECOND AMENDED AND RESTATED CERTIFICATE OF
INCORPORATION AND SUCH AMENDED AND RESTATED SHAREHOLDERS AGREEMENT ARE COMPLIED WITH AND EVIDENCE OF SUCH COMPLIANCE IS SUBMITTED TO THE COMPANY.

INTERDENT, INC.

CLASS
G

COMMON STOCK PURCHASE WARRANT 

December 15,
2004 

	No. W-G-1	 	Warrant to Purchase 95,000

Shares of Class C Common Stock

        INTERDENT, INC.,
a Delaware corporation (the "Company"), for value received, hereby certifies that LEVINE LEICHTMAN CAPITAL PARTNERS II, L.P., or registered assigns (the
"Holder"), is entitled to purchase from the Company, up to Ninety Five Thousand (95,000) (the "Warrant Quantity") duly authorized, validly issued, fully paid and nonassessable shares of Class C
Common Stock, par value $0.001 per share, of the Company (the "Class C Common Stock"), at a purchase price equal to Class G Warrant Exercise Price per share, at any time or from time to
time, but prior to 5:00 P.M., California time on December 14, 2011 (the "Expiration Date"), all subject to the terms, conditions and adjustments set forth below in this Class G
InterDent, Inc. Common Stock Purchase Warrant (this "Warrant"). 

        1.    DEFINITIONS.    As used herein, unless the context otherwise requires, the following terms shall have the
meanings indicated: 

        "Additional Shares of Common Stock" shall mean all shares (including treasury shares) of Common Stock issued or sold (or, pursuant to
Section 3.3 or 3.4, deemed to be issued) by the Company after the date hereof, whether or not subsequently reacquired or retired by the Company, other than 

        (a)   shares
issued upon the exercise of this Warrant and such number of additional shares as may become issuable upon the exercise of this Warrant by reason of adjustments
required pursuant to the anti-dilution provisions applicable to this Warrant, and 

 

        (b)   shares
issued upon the exercise of any InterDent, Inc. Class D Common Stock Purchase Warrants and such number of additional shares as may become issuable
upon the exercise of such warrant by reason of adjustments required pursuant to the anti-dilution provisions applicable to such warrants, and 

        (c)   shares
issued upon the exercise of options issued to officers, directors, and employees of, and consultants to, the Company pursuant to a management incentive plan
approved by the Board of Directors and such additional number of shares as may become issuable pursuant to the terms of any such plans by reason of adjustments required pursuant to
anti-dilution provisions applicable to such securities, and 

        (d)   shares
issued upon the conversion of the Preferred Stock and such number of additional shares as may become issuable upon the conversion of the Preferred Stock by reason
of adjustments required pursuant to anti-dilution provisions applicable to the Preferred Stock. 

        "Business Day" shall mean any day other than a Saturday or a Sunday or a day on which commercial banking institutions in the State of
California are authorized by law to be closed. Any reference to "days" (unless Business Days are specified) shall mean calendar days. 

        "Common Stock" shall mean all classes of common stock of the Company, including the Class C Common Stock. 

        "Class C Common Stock" shall have the meaning assigned to it in the introduction to this Warrant, such term to include any stock
into which such Class C Common Stock shall have been changed or any stock resulting from any reclassification of such Class C Common Stock, and all other stock of any class or classes
(however designated) of the Company, the holders of which have the right, without limitation as to amount, either to all or to a share of the balance of current dividends and liquidating dividends
after the payment of dividends and distributions on any shares entitled to preference. 

        "Class G Warrant Exercise Price" shall mean $161.78 per share. 

        "Company" shall have the meaning assigned to it in the introduction to this Warrant, such term to include any corporation or other entity
which shall succeed to or assume the obligations of the Company hereunder in compliance with Section 4. 

        "Convertible Securities" shall mean any evidences of indebtedness, shares of stock (other than Common Stock) or other securities directly
or indirectly convertible into or exchangeable for Additional Shares of Common Stock. 

        "Current Market Price" shall mean, on any date specified herein, the average of the daily Market Price during the 10 consecutive trading
days commencing fifteen (15) trading days before such date, except that, if on any such date the shares of Class C Common Stock are not listed or admitted for trading on any national
securities exchange or quoted on the NASD automated quotation system, the Current Market Price shall be the Market Price on such date. 

        "Disposition Event" shall mean (i) the sale of all or substantially all of the equity securities of the Company to a single entity
or to a group of entities in a single transaction, or the consolidation or merger of the Company into or with any other entity or entities, either of which results in the exchange of outstanding
shares of the Company primarily for (a) cash, (b) securities which are quoted or listed on the NASDAQ, American Stock Exchange, New York Stock Exchange, or comparable foreign exchange,
(c) a debt instrument or security; or (d) securities of a privately-held entity, in each case paid or issued by any such entity or Affiliate thereof; (ii) a sale of
all or substantially all of the assets of the Company to any other entity or entities in exchange primarily for (a) cash, (b) securities which are quoted or listed on the NASDAQ,
American Stock Exchange, New York Stock Exchange, or comparable foreign exchange, (c) a debt instrument or security, or (d) securities of a privately-held entity, in each
case paid or issued by any such entity or Affiliate thereof; (iii) any firm commitment 

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underwritten
public offering of the Common Stock in which the Holder is able to exercise piggy-back registration rights (but only to the extent of the number of shares of equity securities
which the Holder will be entitled to register and sell as part of such public offering); (iv) a sale of Common Stock by the Company in an offering which is not a "public offering" under any
applicable federal or state securities laws and does not require registration, to a Person other than the LL Entities, for net proceeds to the issuer (after costs of issuance such as underwriting
discounts, professional fees and the like) of at least $20 million; or (v) any time a bring-along right is exercised requiring a sale of Common Stock issuable upon exercise of this
Warrant under Section 2.3 of the Shareholders Agreement. 

        "Expiration Date" shall have the meaning assigned to it in the introduction to this Warrant. 

        "Fair Value" shall mean, on any date specified herein (i) in the case of cash, the dollar amount thereof, (ii) in the case
of a security, the Current Market Price, and (iii) in all other cases, the fair value thereof as determined reasonably and in good faith by the Board of Directors of the Company. 

        "Fully Diluted Basis" shall mean giving effect, without dilution, to all shares of Common Stock outstanding at the time of determination
plus all shares of Common Stock issuable upon conversion of any Preferred Stock or other convertible securities outstanding at the time of determination or upon the exercise of any option, warrant or
similar right outstanding at the time of determination whether or not then exercisable or exercised. 

        "Holder" shall have the meaning assigned to it in the introduction to this Warrant. 

        "LL Entities" shall mean Levine Leichtman Capital Partners II, L.P. and Pleasant Street Investors, LLC. 

        "Market Price" shall mean, on any date specified herein, the amount per share of the Class C Common Stock, equal to (i) the
last reported sale price of such Class C Common Stock, regular way, on such date or, in case no such sale takes place on such date, the average of the closing bid and asked prices thereof
regular way on such date, in either case as officially reported on the principal national securities exchange on which such Class C Common Stock is then listed or admitted for trading,
(ii) if such Class C Common Stock is not then listed or admitted for trading on any national securities exchange but is designated as a national market system security by the NASD, the
last reported trading price of the Class C Common Stock on such date, (iii) if there shall have been no trading on such date or if the Class C Common Stock is not so designated,
the average of the closing bid and asked prices of the Class C Common Stock on such date as shown by the NASD automated quotation system, or (iv) if such Class C Common Stock is
not then listed or admitted for trading on any national exchange, so designated or quoted on the NASD automated quotation system, the fair value thereof as determined reasonably and in good faith by
the Board of Directors of the Company. 

        "NASD" shall mean the National Association of Securities Dealers, Inc. 

        "Options" shall mean any rights, options or warrants to subscribe for, purchase or otherwise acquire either Additional Shares of Common
Stock or Convertible Securities. 

        "Other Securities" shall mean any stock (other than Class C Common Stock) and other securities of the Company or any other Person
(corporate or otherwise) which the holder of this Warrant at any time shall be entitled to receive, or shall have received, upon the exercise of this Warrant, in lieu of or in addition to
Class C Common Stock, or which at any time shall be issuable or shall have been issued in exchange for or in replacement of Class C Common Stock or Other Securities pursuant to
Section 4 or otherwise. 

        "Person" shall mean any individual, firm, partnership, corporation, trust, joint venture, association, joint stock company, limited
liability company, unincorporated organization or any other entity or organization, including a government or agency or political subdivision thereof, and shall include any successor (by merger or
otherwise) of such entity. 

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        "Preferred Stock" shall mean the Class A Preferred Stock, Class B Preferred Stock and Class C Preferred Stock of the
Company. 

        "Purchase Price" shall mean the Class G Warrant Exercise Price. 

        "Restated Charter" shall mean the Company's Second Amended and Restated Certificate of Incorporation, as the same may be amended,
restated, modified or supplemented from time to time. 

        "Securities Act" shall mean the Securities Act of 1933, as amended from time to time, and the rules and regulations thereunder, or any
successor statute. 

        "Shareholders Agreement" shall mean the Amended and Restated Shareholders Agreement, dated as of December 15, 2004, by and among
the Company, the LL Entities and each other Stockholder of the Company, as the same may be amended, restated, modified or supplemented from time to time. 

        "Transfer Agent" shall have the meaning assigned to it in Section 9 hereof. 

        "Warrant Quantity" shall have the meaning assigned to it in the introduction to this Warrant, which amount shall be subject to adjustment
and readjustment from time to time as provided in Section 3, and, as so adjusted or readjusted, shall remain in effect until a further adjustment or readjustment is required by
Section 3. 

        "Warrant Register" shall have the meaning assigned to it in Section 10.1 hereof. 

        "Warrant Securities" shall mean (i) this Warrant, (ii) any shares of Class C Common Stock (or Other Securities)
issued or issuable upon the exercise of this Warrant which are (or, upon issuance, will be)
evidenced by a certificate or certificates bearing the applicable legend set forth in Section 8.1, and (iii) any shares of Class C Common Stock (or Other Securities) issued
subsequent to the exercise of this Warrant as a dividend or other distribution with respect to, or resulting from a subdivision of the outstanding shares of Class C Common Stock (or Other
Securities) into a greater number of shares by reclassification, stock splits or otherwise, or in exchange for or in replacement of the Class C Common Stock (or Other Securities) issued upon
such exercise, which are evidenced by a certificate or certificates bearing the applicable legend set forth in Section 8.1. 

        "Warrants" shall mean the right to purchase Class C Common Stock represented by this Warrant. 

        2.    EXERCISE OF WARRANT.    

        2.1.    Manner of Exercise; Payment of the Purchase Price; Early Cancellation.    

        (a)   This
Warrant may be exercised by the Holder hereof for up to Ninety Five Thousand (95,000) shares of Class C Common Stock (subject to adjustment as provided
herein), in whole or in part, at any time or from time to time prior to the Expiration Date, by surrendering to the Company at its principal office this Warrant, with the form of Election to Purchase
Shares attached hereto as Exhibit A (or a reasonable facsimile thereof) duly executed by the Holder and accompanied by payment of the Purchase
Price for the number of shares of Class C Common Stock specified in such form. 

        (b)   Payment
of the Purchase Price may be made by any combination of the following: (i) in United States currency by cash or delivery of a certified check or bank
draft payable to the order of the Company or by wire transfer to the Company, (ii) by cancellation of such number of the shares of Class C Common Stock otherwise issuable to the Holder
upon such exercise as shall be specified in such Election to Purchase Shares, such that the excess of the aggregate Current Market Price of such specified number of shares on the date of exercise over
the portion of the Purchase Price attributable to such shares shall equal the Purchase Price attributable to the shares of Class C Common Stock to be issued upon such exercise, in which case
such amount shall be deemed to have been paid to the Company and the number of shares issuable upon such exercise shall be reduced by such specified number, or (iii) by surrender to the Company
for cancellation 

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certificates
representing shares of Class C Common Stock of the Company owned by the Holder (properly endorsed for transfer in blank) having a Current Market Price on the date of Warrant
exercise equal to the Purchase Price. 

        (c)   The
Company shall provide not less than twenty (20) days written notice to the Holder prior to the occurrence of any proposed Disposition Event. 

        2.2.    When Exercise Effective.    Each exercise of this Warrant shall be deemed to have been effected immediately
prior to the close of business on the Business Day on which this Warrant shall have been surrendered to, and the Purchase Price shall have been received by, the Company as provided in
Section 2.1, and at such time the Person or Persons in whose name or names any certificate or certificates for shares of Class C Common Stock (or Other Securities) shall be issuable upon
such exercise as provided in Section 2.4 shall be deemed to have become the holder or holders of record thereof for all purposes. 

        2.3.    Cancellation Upon Exercise of Bring Along Rights.    (a) Upon the consummation of a transaction (a
"Bring Along Sale") entitling the exercise of bring along rights pursuant to Section 2.3 of the Shareholders Agreement and the provisions of the Restated Charter (and provided such rights are
exercised in accordance with the provisions of the Shareholders Agreement and the Restated Charter), this Warrant shall be deemed automatically cancelled (with no payment therefor) to the extent that
the Holder fails to exercise this Warrant five (5) Business Days prior to the date of such consummation for all shares of Class C Common Stock for which it is then exercisable (after
giving effect to the consummation of such transaction); provided this Warrant shall not be cancelled to the extent the buyer in the Bring Along Sale permits the Holder to retain this Warrant upon
consummation of the Bring Along Sale. Holder agrees that whether the buyer agrees to permit the Holder to retain the Warrant is in the sole discretion of the buyer and that notwithstanding any other
provision contained in this Warrant, neither the Company nor the party exercising the bring-along rights shall be under any obligation whatsoever to include such an agreement as part of the terms of
the Bring Along Sale. 

        (b)   The
exercise of this Warrant by the holder in connection with this Section 2.3 may be conditioned by the Holder upon the consummation of the Bring Along Sale and
the cancellation of this Warrant, to the extent it is not exercised, shall be conditioned upon the consummation of the Bring Along Sale. 

        2.4.    Delivery of Stock Certificates, etc.; Charges, Taxes and Expenses.    (a) As soon as practicable after
each exercise of this Warrant, in whole or in part, and in any event within five Business Days thereafter, the Company shall cause to be issued in the name of and delivered to the Holder hereof as the
Holder may direct, 

	(i)
	a
certificate or certificates for the number of shares of Class C Common Stock (or Other Securities) to which the Holder shall be entitled upon such exercise
plus, in lieu of issuance of any fractional share to which the Holder would otherwise be entitled, if any, a check for the amount of cash equal to the same fraction multiplied by the Current Market
Price per share on the date of Warrant exercise, and

	(ii)
	in
case such exercise is for less than all of the shares of Class C Common Stock purchasable under this Warrant, a new Warrant or Warrants of like tenor, for the
balance of the shares of Class C Common Stock purchasable hereunder. 

        (b)   Issuance
of certificates for shares of Class C Common Stock upon the exercise of this Warrant shall be made without charge to the Holder hereof for any issue or
transfer tax or other incidental expense, in respect of the issuance of such certificates, all of which such taxes and expenses shall be paid by the Company. 

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        3.    ADJUSTMENT OF CLASS G WARRANT EXERCISE PRICE AND WARRANT QUANTITY.    

        3.1    General; Warrant Quantity.    This Warrant evidences the right to purchase a number of shares of Class C
Common Stock equal to the Warrant Quantity, subject to adjustment and readjustment of the Class G Warrant Exercise Price and Warrant Quantity as provided in this Section 3. 

        3.2    Adjustment of Class G Warrant Exercise Price and Warrant Quantity.    

        3.2.1.    Issuance of Additional Shares of Common Stock.    In case the Company at any time or from time to time after
the date hereof shall issue or sell (the "Qualifying Issuance") Additional Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued pursuant to Section 3.3 or
3.4) without consideration or for consideration per share less than the Class G Warrant Exercise Price in effect immediately prior to such issue or sale, then, in each such case, subject to
Section 3.8, the Class G Warrant Exercise Price per share shall be decreased, concurrently with such issue or sale, to an amount equal to the product obtained by multiplying
(i) the Class G Warrant Exercise Price per share in effect immediately prior to the Qualifying Issuance, by (ii) a fraction, the numerator of which shall be the sum of
(A) the product obtained by multiplying (1) the number of shares of Common Stock outstanding (on a Fully Diluted Basis) immediately prior to the Qualifying Issuance by (2) the
Class G Warrant Exercise Price per share as of the date of the Qualifying Issuance, plus (B) the cash consideration, if any, received by the Company upon such Qualifying Issuance, and
the denominator of which shall be the product obtained by multiplying (C) the number of shares of Common Stock outstanding (on a Fully Diluted Basis) immediately after such Qualifying Issuance,
by (D) the Class G Warrant Exercise Price per share as of the date of such Qualifying Issuance. 

        3.2.2        Upon any adjustment of the Class G Warrant Exercise Price as herein provided, the
Warrant Quantity shall be adjusted by multiplying the Warrant Quantity immediately prior to such adjustment by a fraction, the numerator of which shall be the Class G Warrant Exercise Price of
this Warrant immediately prior to such adjustment and the denominator of which shall be the Class G Warrant Exercise Price immediately thereafter. 

        3.2.3    Treasury Shares.    For purposes of this Section 3.2, the term treasury shares shall not include, or
be deemed to include, any share held by the Company as "Distribution Agent" under the Plan for distribution to holders of disputed claims. 

        3.3    Treatment of Options and Convertible Securities.    In case the Company at any time or from time to time after
the date hereof shall issue, sell, grant or assume, or shall fix a record date for the determination of holders of any class of securities of the Company entitled to receive, any Options or
Convertible Securities (whether or not the rights thereunder are immediately exercisable), then, and in each such case, the maximum number of Additional Shares of Common Stock (as set forth in the
instrument relating thereto, without regard to any provisions contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or, in the case of Convertible
Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be Additional Shares of Common Stock issued as of the time of such issue, sale, grant or
assumption or, in case such a record date shall have been fixed, as of the close of business on such record date (or, if the Common Stock trades on an ex-dividend basis, on the date prior
to the commencement of ex-dividend trading); provided, that such Additional Shares of Common Stock shall not be deemed to have been issued
unless the consideration per share (determined pursuant to Section 3.5) of such shares would be less than the Class G Warrant Exercise Price in effect on the date of and immediately
prior to such issue, sale, grant or assumption or immediately prior to the close of business on such record date (or, if the Common Stock trades on an ex-dividend basis, on the date prior
to the commencement of 

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ex-dividend
trading), as the case may be, and provided, further, that in any such case in
which Additional Shares of Common Stock are deemed to be issued: 

        (a)   whether
or not the Additional Shares of Common Stock underlying such Options or Convertible Securities are deemed to be issued, no further adjustment of the
Class G Warrant Exercise Price or the Warrant Quantity shall be made upon the subsequent issue or sale of Convertible Securities or shares of Common Stock upon the exercise of such Options or
the conversion or exchange of such Convertible Securities, except in the case of any such Options or Convertible Securities which contain provisions requiring an adjustment, subsequent to the date of
the issue or sale thereof, of the number of Additional Shares of Common Stock issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities by reason of
(i) a change of control of the Company, (ii) the acquisition by any Person or group of Persons of any specified number or percentage of the voting securities of the Company or
(iii) any similar event or occurrence, such as a reset of pricing with respect to the conversion of convertible securities, each such case to be deemed hereunder to involve a separate issuance
of Additional Shares of Common Stock, Options or Convertible Securities, as the case may be; 

        (b)   if
such Options or Convertible Securities by their terms provide, with the passage of time or otherwise, for any increase in the consideration payable to the Company, or
decrease in the number of Additional Shares of Common Stock issuable, upon the exercise, conversion or exchange thereof (by change of rate or otherwise), the Class G Warrant Exercise Price and
Warrant Quantity computed upon the original issue, sale, grant or assumption thereof (or upon the occurrence of the record date, or date
prior to the commencement of ex-dividend trading, as the case may be, with respect thereto), and any subsequent adjustments based thereon, shall, upon any such increase or decrease
becoming effective, be recomputed to reflect such increase or decrease insofar as it affects such Options, or the rights of conversion or exchange under such Convertible Securities, which are
outstanding at such time; 

        (c)   upon
the expiration (or purchase by the Company and cancellation or retirement) of any such Options which shall not have been exercised or the expiration of any rights
of conversion or exchange under any such Convertible Securities which (or purchase by the Company and cancellation or retirement of any such Convertible Securities the rights of conversion or exchange
under which) shall not have been exercised, the Class G Warrant Exercise Price and Warrant Quantity computed upon the original issue, sale, grant or assumption thereof (or upon the occurrence
of the record date, or date prior to the commencement of ex-dividend trading, as the case may be, with respect thereto), and any subsequent adjustments based thereon, shall, upon such
expiration (or such cancellation or retirement, as the case may be), be recomputed as if: 

	(i)
	in
the case of Options for Common Stock or Convertible Securities, the only Additional Shares of Common Stock issued or sold were the Additional Shares of Common Stock,
if any, actually issued or sold upon the exercise of such Options or the conversion or exchange of such Convertible Securities and the consideration received therefor was the consideration actually
received by the Company for the issue, sale, grant or assumption of all such Options, whether or not exercised, plus the consideration actually received by the Company upon such exercise, or for the
issue or sale of all such Convertible Securities which were actually converted or exchanged, plus the additional consideration, if any, actually received by the Company upon such conversion or
exchange, and 

7

  

	(ii)
	in
the case of Options for Convertible Securities, only the Convertible Securities, if any, actually issued or sold upon the exercise of such Options were issued at the
time of the issue or sale, grant or assumption of such Options, and the consideration received by the Company for the Additional Shares of Common Stock deemed to have then been issued was the
consideration actually received by the Company for the issue, sale, grant or assumption of all such Options, whether or not exercised, plus the consideration deemed to have been received by the
Company (pursuant to Section 3.5) upon the issue or sale of such Convertible Securities with respect to which such Options were actually exercised; 

        (d)   no
readjustment pursuant to subdivision (b) or (c) above shall have the effect of decreasing the Class G Warrant Exercise Price or increasing the
Warrant Quantity by an amount in excess of the amount of the adjustment thereof originally made in respect of the issue, sale, grant or assumption of such Options or Convertible Securities; and 

        (e)   in
the case of any such Options which expire by their terms not more than 30 days after the date of issue, sale, grant or assumption thereof, no adjustment of the
Class G Warrant Exercise Price or the Warrant Quantity shall be made until the expiration or exercise of all such Options, whereupon such adjustment shall be made in the manner provided in
subdivision (c) above. 

        3.4.    Treatment of Stock Dividends, Stock Splits, etc.    In case the Company at any time or from time to time after
the date hereof shall declare or pay any dividend on the Common Stock payable in Common Stock, or shall effect a subdivision of the outstanding shares of Common Stock into a greater number of shares
of Common Stock (by reclassification or otherwise than by payment of a dividend in Common Stock), then, and in each such case, Additional Shares of Common Stock shall be deemed to have been issued
(a) in the case of any such dividend, immediately after the close of business on the record date for the determination of holders of any class of securities entitled to receive such dividend,
or (b) in the case of any such subdivision, at the close of business on the day immediately prior to the day upon which such corporate action becomes effective. 

        3.5.    Computation of Consideration.    For the purposes of this Section 3, 

        (a)   the
consideration for the issue or sale of any Additional Shares of Common Stock shall, irrespective of the accounting treatment of such consideration, 

          (i)  insofar
as it consists of cash, be computed at the net amount of cash received by the Company, without deducting any expenses paid or incurred by the Company or any
commissions or compensations paid or concessions or discounts allowed to underwriters, dealers or others performing similar services in connection with such issue or sale, 

         (ii)  insofar
as it consists of property (including securities) other than cash, be computed at the Fair Value thereof at the time of such issue or sale, and 

        (iii)  in
case Additional Shares of Common Stock are issued or sold together with other stock or securities or other assets of the Company for a consideration which covers
both, be the portion of such consideration so received, computed as provided in clauses (i) and (ii) above, allocable to such Additional Shares of Common Stock, such allocation to be
determined in the same manner that the Fair Value of property not consisting of cash or securities is to be determined as provided in the definition of "Fair Value" herein; 

        (b)   Additional
Shares of Common Stock deemed to have been issued pursuant to Section 3.3, relating to Options and Convertible Securities, shall be deemed to have been
issued for a consideration per share determined by dividing: 

          (i)  the
total amount, if any, received and receivable by the Company as consideration for the issue, sale, grant or assumption of the Options or Convertible Securities in
question, 

8

 

plus
the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such
consideration to protect against dilution) payable to the Company upon the exercise in full of such Options or the conversion or exchange of such Convertible Securities or, in the case of Options for
Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities, in each case computing such consideration as provided in
the foregoing subdivision (a), by 

         (ii)  the
maximum number of Additional Shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision contained therein for a
subsequent adjustment of such number to protect against dilution) issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities; and 

        (c)   Additional
Shares of Common Stock deemed to have been issued pursuant to Section 3.4, relating to stock dividends, stock splits, etc., shall be deemed to have
been issued for no consideration. 

        3.6.    Adjustments for Combinations, etc.    In case the outstanding shares of Common Stock shall be combined or
consolidated, by reclassification or otherwise, into a lesser number of shares of Common Stock, the Class G Warrant Exercise Price and Warrant Quantity in effect immediately prior to such
combination or consolidation shall, concurrently with the effectiveness of such combination or consolidation, be proportionately adjusted in accordance with Section 3.2. 

        3.7.    Dilution in Case of Other Securities.    In case any Other Securities shall be issued or sold or shall become
subject to issue or sale upon the conversion or exchange of any stock (or Other Securities) of the Company (or any issuer of Other Securities or any other Person referred to in Section 4) or to
subscription, purchase or other acquisition pursuant to any Options issued or granted by the Company (or any such other issuer or Person) for a consideration such as to dilute, on a basis consistent
with the standards established in the other provisions of this Section 3, the purchase rights granted by this Warrant, then, and in each such case, the computations, adjustments and
readjustments provided for in this Section 3 with respect to the Class G Warrant Exercise Price and the Warrant Quantity shall be made as nearly as possible in the manner so provided and
applied to determine the amount of Other Securities from time to time receivable upon the exercise of this Warrant, so as to protect the Holder of this Warrant against the effect of such dilution. 

        3.8.    De Minimis Adjustments.    If the amount of any adjustment required pursuant to this Section 3 of the
Class G Warrant Exercise Price would be less than one cent ($0.01) or of the Warrant Quantity would be less than one tenth (1/10) of one percent (1%) of the Warrant Quantity in
effect at the time such adjustment is otherwise so required to be made, such amount shall be carried forward and adjustment with respect thereto made at the time of and together with any subsequent
adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate a change in the Class G Warrant Exercise Price of at least one cent ($0.01) or a
change in the Warrant Quantity of at least one tenth (1/10) of one percent (1%). All calculations under this Warrant shall be made to the nearest cent and one tenth of a share. 

        3.9.    Abandoned Dividend or Distribution.    If the Company shall take a record of the holders of its Common Stock
for the purpose of entitling them to receive a dividend or other distribution (which results in an adjustment to the Class G Warrant Exercise Price under the terms of this Warrant) and shall,
thereafter, and before such dividend or distribution is paid or delivered to shareholders entitled thereto, legally abandon its plan to pay or deliver such dividend or distribution, then any
adjustment made to the Class G Warrant Exercise Price by reason of the taking of such record shall be reversed, and any subsequent adjustments, based thereon, shall be recomputed. 

9

 

        4.    CONSOLIDATION, MERGER, ETC.    

        4.1.    Adjustments for Consolidation, Merger, Sale of Assets, Reorganization, etc.    Subject to the provisions of
Section 2.3 and of the Restated Charter and the Shareholders Agreement, in case the Company after the date hereof (a) shall consolidate with or merge into any other Person and shall not
be the continuing or surviving corporation of such consolidation or merger, or (b) shall permit any other Person to consolidate with or merge into the Company and the Company shall be the
continuing or surviving Person but, in connection with such consolidation or merger, the Class C Common Stock or Other Securities shall be changed into or exchanged for stock or other
securities of any other Person or cash or any other property, or (c) shall transfer all or substantially all of its properties or assets to any other Person, or (d) shall effect a
capital reorganization or reclassification of the Class C Common Stock or Other Securities (other than a capital reorganization or reclassification resulting in the issue of Additional Shares
of Common Stock for which adjustment in the Class G Warrant Exercise Price and Warrant Quantity is provided in Section 3), then, and in the case of each such transaction, proper
provision shall be made so that, upon the basis and the terms and in the manner provided in this Warrant, the Holder of this Warrant, upon the exercise hereof at any time after the consummation of
such transaction, shall be entitled to receive (at the aggregate Purchase Price, as adjusted, in effect at the time of such consummation for all Class C Common Stock or Other Securities
issuable upon such exercise immediately prior to such consummation), in lieu of the Class C Common Stock or Other Securities issuable upon such exercise prior to such consummation, the same
amount of securities, cash or other property to which such Holder would actually have been entitled as a shareholder upon such consummation if such Holder had exercised this Warrant immediately prior
thereto, subject to adjustments (subsequent to such consummation) as nearly equivalent as possible to the adjustments provided for in Sections 3 through 5,  provided that if a purchase, tender or
exchange offer shall have been made to and accepted by the holders of more than fifty percent (50%) of the
outstanding shares of Common Stock, and if the Holder so designates in a notice given to the Company on or before the date immediately preceding the date of the consummation of such transaction, the
Holder of such Warrants shall be entitled to receive the same amount of securities, cash or other property to which it would actually have been entitled as a shareholder if the Holder of such Warrants
had exercised such Warrants prior to the expiration of such purchase, tender or exchange offer and accepted such offer, subject to adjustments (from and after the consummation of such purchase, tender
or exchange offer) as nearly equivalent as possible to the adjustments provided for in Sections 3 through 5. 

        4.2.    Assumption of Obligations.    Subject to the provisions of Section 2.3 and of the Restated Charter and
the Shareholders Agreement, the Company shall not effect any of the transactions described in clauses (a) through (d) of Section 4.1 unless, prior to the consummation thereof,
each Person (other than the Company) which may be required to deliver any stock, securities, cash or property upon the exercise of this Warrant as provided herein shall assume, by written instrument
delivered to, and reasonably satisfactory to, the Holder of this Warrant, (a) the obligations of the Company under this Warrant (and if the Company shall survive the consummation of such
transaction, such assumption shall be in addition to, and shall not release the Company from, any continuing obligations of the Company under this Warrant), and (b) the obligation to deliver to
the Holder such shares of stock, securities, cash or property as, in accordance with the foregoing provisions of this Section 4, the Holder may be entitled to receive. 

        5.    OTHER DILUTIVE EVENTS.    In case any event shall occur as to which in the opinion of the Board of Directors of
the Company the provisions of Section 3 or Section 4 are not strictly applicable or if strictly applicable would not fairly protect the purchase rights of the Holder in accordance with
the essential intent and principles of such Sections, then, in each such case, the Board of Directors of the Company shall make an adjustment in the application of such provisions in accordance with
such essential intent and principles so as to preserve, without dilution, the purchase rights represented by this Warrant. 

10

 

        6.    NO DILUTION OR IMPAIRMENT.    The Company shall not, by amendment of the Restated Charter after the issuance of
this Warrant or through any consolidation, merger, reorganization, transfer of assets, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder of this Warrant against dilution or other impairment. Without limiting the generality of the foregoing, the Company (a) shall not permit
the par value of any shares of stock receivable upon the exercise of this Warrant to exceed the amount payable therefor upon such exercise, (b) shall take all such action as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of stock, free from all taxes, liens, security interests, encumbrances, preemptive rights and
charges on the exercise of the Warrants from time to time outstanding, or (c) shall not take any action which results in any adjustment of the Class G Warrant Exercise Price and the
Warrant Quantity if the total number of shares of Class C Common Stock (or Other Securities) issuable after the action upon the exercise of all of the Warrants would exceed the total number of
shares of Class C Common Stock (or Other Securities) then authorized by the Restated Charter and available for the purpose of issue upon such exercise. 

        7.    CERTIFICATE AS TO ADJUSTMENTS.    In each case of any adjustment or readjustment in the Class G Warrant
Exercise Price applicable or the shares of Class C Common Stock issuable upon the exercise of this Warrant, the Company at its expense shall promptly compute such adjustment or readjustment in
accordance with the terms of this Warrant and prepare a certificate, signed by the Chief Financial Officer or Treasurer of the Company, setting forth such adjustment or readjustment and showing in
reasonable detail the method of calculation thereof and the facts upon which such adjustment or readjustment is based, including a statement of (a) the consideration received or to be received
by the Company for any Additional Shares of Common Stock issued or sold or deemed to have been issued, (b) the number of shares of Class C Common Stock outstanding or deemed to be
outstanding, and (c) the Class G Warrant Exercise Price Warrant Quantity in effect immediately prior to such issue or sale and as adjusted and readjusted (if required by
Section 3) on account thereof. The Company shall forthwith mail a copy of each such certificate to each holder of a Warrant and shall, upon the written request at any time of any holder of a
Warrant, furnish to such holder a like certificate. The Company shall also keep copies of all such certificates at its principal office and shall cause the same to be available for inspection at such
office during normal business hours by any holder of a Warrant or any prospective purchaser of a Warrant designated by the holder thereof. 

        8.    RESTRICTIONS ON TRANSFER.    

        8.1.    Restrictive Legends.    Except as otherwise permitted by this Section 8, each Warrant (including each
Warrant issued upon the transfer of any Warrant) shall be stamped or otherwise imprinted with a legend in substantially the following form: 

"THIS
WARRANT OR ANY SECURITIES ACQUIRED UPON THE EXERCISE OF THIS WARRANT ARE "RESTRICTED SECURITIES" AS DEFINED IN THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"). THEREFORE THIS WARRANT AND ANY SECURITIES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES LAW OF ANY
STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS. THIS WARRANT AND ANY SECURITIES ACQUIRED UPON THE EXERCISE OF THIS WARRANT ARE SUBJECT TO CERTAIN SIGNIFICANT RESTRICTIONS ON TRANSFER AND TO THE RIGHTS OF OTHER STOCKHOLDERS TO
PURCHASE, 

11

 

OR
COMPEL THE SALE OF, THIS WARRANT AND SUCH SECURITIES ON THE TERMS AND CONDITIONS SET FORTH IN THE COMPANY'S SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION, AS THE SAME MAY BE AMENDED FROM
TIME TO TIME, AND IN A CERTAIN AMENDED AND RESTATED SHAREHOLDERS AGREEMENT, DATED AS OF DECEMBER 15, 2004, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, COPIES OF WHICH MAY BE OBTAINED FROM THE
COMPANY. NO TRANSFER OF THIS WARRANT AND SUCH SECURITIES WILL BE VALID OR REGISTERED ON THE BOOKS OF THE COMPANY UNLESS AND UNTIL THE TERMS OF ANY RESTRICTIONS CONTAINED IN THIS WARRANT, SUCH SECOND
AMENDED AND RESTATED CERTIFICATE OF INCORPORATION AND SUCH AMENDED AND RESTATED SHAREHOLDERS AGREEMENT ARE COMPLIED WITH AND EVIDENCE OF SUCH COMPLIANCE IS SUBMITTED TO THE COMPANY." 

        Except
as otherwise permitted by this Section 8, each certificate for Class C Common Stock (or Other Securities) issued upon the exercise of any Warrant, and each
certificate issued upon the transfer of any such Class C Common Stock (or Other Securities), shall be stamped or otherwise imprinted with a legend in substantially the following form: 

"THE
SECURITIES OF THE COMPANY REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN SIGNIFICANT RESTRICTIONS ON TRANSFER AND TO THE RIGHTS OF OTHER STOCKHOLDERS TO PURCHASE, OR COMPEL THE SALE OF,
THIS WARRANT AND SUCH SECURITIES ON THE TERMS AND CONDITIONS SET FORTH IN THE COMPANY'S SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, AND IN A
CERTAIN AMENDED AND RESTATED SHAREHOLDERS AGREEMENT, DATED AS OF DECEMBER 15, 2004, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, COPIES OF WHICH MAY BE OBTAINED FROM THE COMPANY. NO TRANSFER OF THE
SECURITIES
OF THE COMPANY REPRESENTED BY THIS CERTIFICATE WILL BE VALID OR REGISTERED ON THE BOOKS OF THE COMPANY UNLESS AND UNTIL THE TERMS OF ANY RESTRICTIONS CONTAINED IN SUCH SECOND AMENDED AND RESTATED
CERTIFICATE OF INCORPORATION AND SUCH AMENDED AND RESTATED SHAREHOLDERS AGREEMENT ARE COMPLIED WITH AND EVIDENCE OF SUCH COMPLIANCE IS SUBMITTED TO THE COMPANY. THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE NOT "RESTRICTED SECURITIES" AS DEFINED IN THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"). THEREFORE THE SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES LAW OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN APPLICABLE EXEMPTION TO THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. " 

        8.2.    Transfer to Comply With the Securities Act.    Warrant Securities may not be sold, assigned, pledged,
hypothecated, encumbered or in any manner transferred or disposed of, in whole or in part, except in compliance with the provisions of the Securities Act and state securities or Blue Sky laws, the
terms and conditions hereof, the terms and conditions of the Shareholders Agreement and the terms and conditions of the Restated Charter. 

        9.    RESERVATION OF STOCK, ETC.    The Company shall at all times reserve and keep available, solely for issuance and
delivery upon exercise of this Warrant, the number of shares of Class C Common Stock (or Other Securities) from time to time issuable upon exercise of this Warrant. All shares of Class C
Common Stock (or Other Securities) issuable upon exercise of this Warrant shall 

12

 

be
duly authorized and, when issued upon such exercise, shall be validly issued and, in the case of shares, fully paid and nonassessable with no liability on the part of the holders thereof, and, in
the case of all securities, shall be free from all taxes, liens, security interests, encumbrances, preemptive rights and charges. The transfer agent for the Class C Common Stock, which may be
the Company ("Transfer Agent"), and every subsequent Transfer Agent for any shares of the Company's capital stock issuable upon the exercise of any of the purchase rights represented by this Warrant,
are hereby irrevocably authorized and directed at all times until the Expiration Date to reserve such number of authorized and unissued shares as shall be requisite for such purpose. The Company shall
keep copies of this Warrant on file with the Transfer Agent for the Class C Common Stock and with every subsequent Transfer Agent for any shares of the Company's capital stock issuable upon the
exercise of the rights of purchase represented by this Warrant. The Company shall supply such Transfer Agent with duly executed stock certificates for such purpose. All Warrant Certificates
surrendered upon the exercise of the rights thereby evidenced shall be canceled, and such canceled Warrants shall constitute sufficient evidence of the number of shares of stock which have been issued
upon the exercise of such Warrants. Subsequent to the Expiration Date, no shares of stock need be reserved in respect of any unexercised Warrant. 

        10.    REGISTRATION AND TRANSFER OF WARRANTS, ETC.    

        10.1.    Warrant Register; Ownership of Warrants.    Each Warrant issued by the Company shall be numbered and shall be
registered in a warrant register (the "Warrant Register") as it is issued and transferred, which Warrant Register shall be maintained by the Company at its principal office or, at the Company's
election and expense, by a Warrant Agent or the Company's transfer agent. The Company shall be entitled to treat the registered Holder of any Warrant on the Warrant Register as the owner in fact
thereof for all purposes and shall not be bound to recognize any equitable or other claim to or interest in such Warrant on the part of any other Person, and shall not be affected by any notice to the
contrary, except that, if and when any Warrant is properly assigned in blank, the Company may (but shall not be obligated to) treat the bearer thereof as the owner of such Warrant for all purposes.
Subject to Section 8, a Warrant, if properly assigned, may be exercised by a new holder without a new Warrant first having been issued. 

        10.2.    Transfer of Warrants.    Subject to compliance with Section 8, if applicable, the Shareholders
Agreement, and the Restated Charter, this Warrant and all rights hereunder are transferable in whole or in part, without charge to the Holder hereof, upon surrender of this Warrant with a properly
executed Form of Assignment attached hereto as Exhibit B at the principal office of the Company. Upon any partial transfer, the Company shall at its expense issue and deliver to the Holder a
new Warrant of like tenor, in the name of the Holder, which shall be exercisable for such number of shares of Class C Common Stock with respect to which rights under this Warrant were not so
transferred. 

        10.3.    Replacement of Warrants.    On receipt by the Company of evidence reasonably satisfactory to the Company of
the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement reasonably satisfactory in
form and amount to the Company or, in the case of any such mutilation, on surrender of such Warrant to the Company at its principal office and cancellation thereof, the Company at its expense shall
execute and deliver, in lieu thereof, a new Warrant of like tenor. 

        10.4.    Adjustments To Number of Shares.    Notwithstanding any adjustment in the number or kind of shares of
Class C Common Stock purchasable upon exercise of this Warrant, any Warrant theretofore or thereafter issued may continue to express the same number and kind of shares of Class C Common
Stock as are stated in this Warrant, as initially issued. 

        10.5.    Fractional Shares.    Notwithstanding any adjustment pursuant to Section 3 or any other provision of
this Warrant, the Company shall not be required to issue fractions of shares upon exercise of this Warrant or to distribute certificates which evidence fractional shares. In lieu of fractional shares, 

13

 

the
Company shall make payment to the Holder, at the time of exercise of this Warrant as herein provided, in an amount in cash equal to such fraction multiplied by the Current Market Price of a share
of Class C Common Stock on the date of Warrant exercise. 

        11.    NO RIGHTS OR LIABILITIES AS STOCKHOLDER.    Nothing contained in this Warrant shall be construed as conferring
upon the Holder hereof any rights as a stockholder of the Company or as imposing any obligation on the Holder to purchase any securities or as imposing any liabilities on the Holder as a stockholder
of the Company, whether such obligation or liabilities are asserted by the Company or by creditors of the Company. 

        12.    NOTICES.    All notices and other communications (and deliveries) provided for or permitted hereunder shall be
made in writing by hand delivery, telecopier, any courier guaranteeing overnight delivery or first class registered or certified mail, return receipt requested, postage prepaid, addressed
(a) if to the Company, to the attention of its President at its principal office located at 222 North Sepulveda Blvd., Suite 740, El Segundo, California 90245 or such other address as may
hereafter be designated in writing by the Company to the Holder in accordance with the provisions of this Section, or (b) if to the Holder, at its address as it appears in the Warrant Register. 

        All
such notices and communications (and deliveries) shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; when receipt is acknowledged, if
telecopied; on the next Business Day, if timely delivered to a courier guaranteeing overnight delivery; and five days after being deposited in the mail, if sent first class or certified mail, return
receipt requested, postage prepaid; provided, that the exercise of any Warrant shall be effective in the manner provided in Section 2. 

        13.    AMENDMENTS.    This Warrant and any term hereof may not be amended, modified, supplemented or terminated, and
waivers or consents to departures from the provisions hereof may not be given, except by written instrument duly executed by the party against which enforcement of such amendment, modification,
supplement, termination or consent to departure is sought. 

        14.    DESCRIPTIVE HEADINGS, ETC.    The headings in this Warrant are for convenience of reference only and shall not
limit or otherwise affect the meaning of terms contained herein. Unless the context of this Warrant otherwise requires: (1) words of any gender shall be deemed to include each other gender;
(2) words using the singular or plural number shall also include the plural or singular number, respectively; (3) the words "hereof", "herein" and "hereunder" and words of similar import
when used in this Warrant shall refer to this Warrant as a whole and not to any particular provision of this Warrant, and Section and paragraph references are to the Sections and paragraphs of this
Warrant unless otherwise specified; (4) the word "including" and words of similar import when used in this Warrant shall mean "including, without limitation," unless otherwise specified;
(5) "or" is not exclusive; and (6) provisions apply to successive events and transactions. 

        15.    GOVERNING LAW.    This Warrant shall be governed by, and construed in accordance with, the laws of the State of
California (without giving effect to the conflict of laws principles thereof). 

        16.    JUDICIAL PROCEEDINGS.    Any legal action, suit or proceeding brought against the Company with respect to this
Warrant may be brought in any federal court of the Central District of California or any state court located in Orange County, State of California, and by execution and delivery of this Warrant, the
Company hereby irrevocably and unconditionally waives any claim (by way of motion, as a defense or otherwise) of improper venue, that it is not subject personally to the jurisdiction of such court,
that such courts are an inconvenient forum or that this Warrant or the subject matter may not be enforced in or by such court. The Company hereby irrevocably and unconditionally consents to the
service of process of any of the aforementioned courts in any such action, suit or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, at its address set
forth or provided for in Section 12, such service to become effective 10 days 

14

 

after
such mailing. Nothing herein contained shall be deemed to affect the right of any party to serve process in any manner permitted by law or commence legal proceedings or otherwise proceed against
any other party in any other jurisdiction to enforce judgments obtained in any action, suit or proceeding brought pursuant to this Section. 

        17.    RESTATED CHARTER AND SHAREHOLDERS AGREEMENT.    This Warrant and the shares of Class C Common Stock (and
Other Securities) issuable upon exercise of this Warrant (or upon conversion of any shares of Class C Common Stock issued upon such exercise) are subject to the terms, conditions and
restrictions of the Restated Charter and the Shareholders Agreement. Each holder of this Warrant, by its acceptance of this Warrant, agrees to be bound by and to comply with the terms and conditions
of the Restated Charter and the Shareholders Agreement. 

	 	 	INTERDENT, INC.
	

 	
 	

By:	
 	

/s/  ROBERT HILL      
	 	 	 	 	

	 	 	 	 	Name: Robert Hill
	 	 	 	 	Title: Vice President

15

  

 
 

EXHIBIT A to Class G
  Common Stock Purchase Warrant    
    

 
 

FORM OF
  ELECTION TO PURCHASE SHARES    
    

        The undersigned hereby irrevocably elects to exercise the Warrant to purchase            shares of Class C Common Stock,
par value $.001 per share
("Common Stock"), of InterDent, Inc. (the "Company") and hereby [makes payment of $            
therefor] [or] [makes payment therefor by reduction
pursuant to Section 2.1(b)(ii) of the Warrant of the number of shares of Class C Common Stock otherwise issuable to the Holder upon Warrant exercise by            
shares] [or] [makes payment therefor by delivery of the
following Class C Common Stock Certificates of the Company (properly endorsed for transfer in blank) for cancellation by the Company pursuant to Section 2.1(b)(iii) of the
Warrant, certificates of which are attached hereto for cancellation            [list certificates by number and
amount]]. The undersigned hereby requests that certificates for such shares be issued and delivered as follows: 

	ISSUE TO:	 	 

	(NAME)
	

 

	(ADDRESS, INCLUDING ZIP CODE)
	

 

	(SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

	DELIVER TO:	 	 

	(NAME)
	

 

	(ADDRESS, INCLUDING ZIP CODE)

        If
the number of shares of Class C Common Stock purchased (and/or reduced) hereby is less than the number of shares of Class C Common Stock covered by the Warrant, the
undersigned requests that a new Warrant representing the number of shares of Class C Common Stock not so purchased (or reduced) be issued and delivered as follows: 

	ISSUE TO:	 	 

	(NAME OF HOLDER(1))
	

 

	(ADDRESS, INCLUDING ZIP CODE)

	DELIVER TO:	 	 

	(NAME OF HOLDER(1))
	

 

	(ADDRESS, INCLUDING ZIP CODE)

	Dated:                        , 20    	 	[NAME OF HOLDER(1)]
	 	 	By	 	 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

	(1)
	Name
of Holder must conform in all respects to name of Holder as specified on the face of the Warrant. 

16

 
 
 

EXHIBIT B to Class G
  Common Stock Purchase Warrant    
    

 
 

FORM OF ASSIGNMENT    
    

        FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto the Assignee named below all of the rights of the undersigned to purchase
Class C Common Stock, par value $.001 per share ("Common Stock") of InterDent, Inc. represented by the Warrant, with respect to the number of shares of Class C Common Stock set
forth below: 

	Name of Assignee
 
	 	Address
	 	No. of Shares

	 	 	 	 	 

and
does hereby irrevocably constitute and appoint                        Attorney to make such transfer on the books of InterDent,
 Inc. maintained for that purpose, with full power of substitution in
the premises. 

	Dated:                        ,
20            	 	 	 	 	 	 
	

 	
 	

[NAME OF HOLDER]
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

17

QuickLinks

Exhibit 4.5

EXHIBIT A to Class G Common Stock Purchase Warrant

FORM OF ELECTION TO PURCHASE SHARES

EXHIBIT B to Class G Common Stock Purchase Warrant

FORM OF ASSIGNMENTQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.12    
    

PREPARED BY, RECORDING REQUESTED BY,

AND WHEN RECORDED MAIL TO:  

Paul, Hastings, Janofsky & Walker LLP

515 South Flower Street, 25th Floor

Los Angeles, California 90071

Attention: Margaret Frick Bertisch, Esq.  

DEED OF TRUST, ASSIGNMENT

OF RENTS AND LEASES AND SECURITY AGREEMENT  

 by and from  

 INTERDENT SERVICE CORPORATION, formerly known as Gentle Dental Service Corporation, "Grantor"  

 to  

 FIRST AMERICAN TITLE INSURANCE COMPANY, "Trustee" or "Grantee"  

 for the benefit of  

 WELLS FARGO FOOTHILL, INC.,

in its capacity as administrative agent, "Beneficiary" or "Grantee"  

 Dated as of June 23, 2004  

	Location:	 	7725 NE Highway 99, Vancouver
	County:	 	Clark
	State:	 	Washington
	Abbreviated Legal Description: Ptn Sec 10 and 11 T2N R1E
	Tax Parcel ID:	 	147993-000

DEED OF TRUST, ASSIGNMENT OF

RENTS AND LEASES, AND SECURITY AGREEMENT

(Washington)  

        THIS DEED OF TRUST, ASSIGNMENT OF RENTS AND LEASES AND SECURITY AGREEMENT (this "Deed of Trust") is dated as of
June 23, 2004, by and from INTERDENT SERVICE CORPORATION, a Washington corporation, formerly known as Gentle Dental Service Corporation, a
Washington corporation ("Grantor"), whose address is 222 North Sepulveda Boulevard, Suite 740, El Segundo, California 90245 to  FIRST AMERICAN TITLE INSURANCE
COMPANY ("Trustee") for the benefit of WELLS
FARGO FOOTHILL, INC., a California corporation, in its capacity as administrative agent
("Agent") pursuant to the Loan Agreement (as defined below), having an address at 2450 Colorado Avenue, Suite 3000 West, Santa Monica, California 90404
(Agent, together with its successors and assigns, is referred to herein as "Beneficiary"). 

RECITALS:  

        WHEREAS, Grantor is the fee owner of the real property and improvements described in Exhibit A attached
hereto. 

        WHEREAS,
INTERDENT, INC., a Delaware corporation (also referred to herein as the context requires as "Parent"), Grantor, as
borrower, Agent and the Lender Group (as defined in the Loan Agreement) have entered into that certain Loan and Security Agreement dated as of June 23, 2004 (as amended, restated, supplemented
or otherwise modified heretofore or hereinafter from time to time, the "Loan Agreement"), which Loan Agreement provides for a revolving loan, a term
loan and other extensions of credit in the principal amount as specified in said Loan Agreement with a maximum principal amount of $37,500,000. Agent and the Lender Group are unwilling to enter into
the Loan Agreement and make available to Grantor the credit facilities provided therein unless Grantor, among other things, secures the Obligations under the Loan Agreement and the other Loan
Documents (as defined in the Loan Agreement) by delivering this Deed of Trust. 

        WHEREAS,
Grantor is receiving a good and valuable benefit, the sufficiency and receipt of which is hereby acknowledged, from Agent and Lender Group entering into the Loan Agreement with
Grantor. 

ARTICLE 1
  DEFINITIONS  

        Section 1.1    Definitions.    All capitalized terms used
herein without definition shall have the respective meanings ascribed to them in the Loan Agreement. As used herein, the following terms shall have the following meanings: 

        (a)   "Event of Default": shall have the meaning ascribed to such term in  Article 4 hereof. 

        (b)   "Indebtedness": All liabilities, obligations (including the Obligations), or undertakings owing by Grantor to Beneficiary
or any Lender of any kind or description arising out of or outstanding under, advanced or issued pursuant to, or evidenced by the Loan Agreement, this Deed of Trust or any other Loan Documents,
including, without limitation, (1) the repayment of all amounts outstanding from time to time under the Loan Agreement and the other Loan Documents, with such indebtedness maturing on the
Maturity Date (as defined in the Loan Agreement), including principal, interest (including all interest that, but for the provisions of the Bankruptcy Code, would have accrued), and other amounts
which may now or hereafter be advanced as Advances, (2) the full and prompt performance of any and all repayment, fee, and indemnification obligations with respect to any Letters of Credit,
(3) fees, costs, expenses, charges and indemnification obligations accrued, incurred or arising in connection with any Loan Document, (4) any and all future advances made pursuant to the
terms of the Loan Agreement, and (5) all other payment Obligations. The Loan Agreement contains a revolving credit facility that permits Grantor to borrow certain principal amounts, repay all
or a portion of such principal amounts, and reborrow the amounts previously paid to Beneficiary, all upon satisfaction of certain conditions 

 

stated
in the Loan Agreement. This Deed of Trust secures all Advances and re-advances under the revolving credit feature of the Loan Agreement. 

        (c)   "Obligations": All of the agreements, covenants, conditions, warranties, representations and other obligations of Grantor
under the Loan Agreement and the other Loan Documents, including, but not limited to, the "Obligations", as defined in the Loan Agreement. 

        (d)   "Permitted Liens": shall have the meaning ascribed to such term in the Loan Agreement. 

        (e)   "Trust Property": All of Grantor's interest in (1) the fee interest in the real property described in  Exhibit A attached hereto and incorporated herein by this
reference, together with any greater estate therein as hereafter may be acquired by
Grantor (the "Land"), (2) all improvements now owned or hereafter acquired by Grantor, now or at any time situated, placed or constructed upon
the Land (the "Improvements"; the Land and Improvements are collectively referred to herein as the
"Premises"), (3) all materials, supplies, equipment, apparatus and other items of personal property now owned or hereafter acquired by Grantor
and now or hereafter attached to or installed in any of the Improvements or the Land, and water, gas, electrical, telephone, storm and sanitary sewer facilities and all other utilities whether or not
situated in easements (the "Fixtures"), (4) all reserves, escrows or impounds required under the Loan Agreement and all deposit accounts
maintained by Grantor with respect to the Trust Property (the "Deposit Accounts"), (5) all existing and future leases, subleases, licenses,
concessions, occupancy agreements or other agreements (written or oral, now or at any time in effect) which grant to any Person a possessory interest in, or the right to use or occupy, all or any part
of the Trust Property, whether made before or after the filing by or against Grantor of any petition for relief under the Bankruptcy Code, together with any extension, renewal or replacement of the
same and together with all related security and other deposits (the "Leases"), (6) all of the rents, additional rents, revenues, royalties,
income, proceeds, profits, early termination fees or payments, security and other types of deposits, and other benefits paid or payable by parties to the Leases for using, leasing, licensing,
possessing, operating from, residing in, selling or otherwise enjoying the Trust Property or any part thereof, whether paid or accruing before or after the filing by or against Grantor of any petition
for relief under the Bankruptcy Code (the "Rents"), (7) all other agreements, such as construction contracts, architects' agreements, engineers'
contracts, utility contracts, maintenance agreements, management agreements, service contracts, listing agreements, guaranties, warranties, permits, licenses, certificates and entitlements in any way
relating to the construction, use, occupancy, operation, maintenance, enjoyment or ownership of the Trust Property (the "Property Agreements"),
(8) all rights, privileges, tenements, hereditaments, rights-of-way, easements, appendages and appurtenances appertaining to the foregoing, (9) all property tax
refunds, utility refunds and rebates, earned or received at any time (the "Tax Refunds"), (10) all accessions, replacements and substitutions for
any of the foregoing and all proceeds thereof (the "Proceeds"), (11) all insurance policies, unearned premiums therefor and proceeds from such
policies covering any of the above property now or hereafter acquired by Grantor (the "Insurance"), (12) all of Grantor's right, title and
interest in and to any awards, damages, remunerations, reimbursements, settlements or compensation heretofore made or hereafter to be made by any governmental authority pertaining to the Land,
Improvements or Fixtures (the "Condemnation Awards"), (13) all of Grantor's rights to appear and defend any action or proceeding brought with
respect to the Trust Property and to commence any action or proceeding to protect the interest of Grantor in the Trust Property, and (14) all rights, powers, privileges, options and other
benefits of Grantor as lessor under the Leases, including, without limitation, the immediate and continuing right to claim for, receive, collect and receive all Rents payable or receivable under the
Leases or pursuant thereto (and to apply the same to the payment of the Indebtedness and the Obligations), and to do all other things which Grantor or any lessor is or may become entitled to do under
the Leases. As used in this Deed of Trust, the term "Trust Property" shall mean all or, where the context permits or requires, any portion of the above or any interest therein. THE TERM "TRUST
PROPERTY" IS INTENDED TO EXCLUDE ALL ITEMS OF PERSONAL PROPERTY IN 

2

 

WHICH
BENEFICIARY HAS OBTAINED AND/OR PERFECTED A SECURITY INTEREST UNDER SEPARATE INSTRUMENTS. 

        (f)    "UCC": The Uniform Commercial Code of the state in which the Land is located or, if the creation, perfection and
enforcement of any security interest herein granted is governed by the laws of a state other than the state in which the Land is located, then, as to the matter in question, the Uniform Commercial
Code in effect in that state. 

ARTICLE 2
  GRANT  

        Section 2.1    Grant.    For and in consideration of good and
valuable consideration, the receipt and sufficiency whereof are hereby acknowledged, and in order to secure the indebtedness and other obligations of Grantor herein set forth, to secure the full and
timely payment of the Indebtedness and the full and timely performance of the Obligations, Grantor GRANTS, BARGAINS, ASSIGNS, SELLS, WARRANTS and CONVEYS, to Trustee the Trust Property, subject,
however, to the Permitted Liens, TO HAVE AND TO HOLD the Trust Property and all parts, rights and appurtenances thereof to Trustee, IN TRUST, WITH POWER OF SALE, and Grantor does hereby bind itself,
its successors and assigns to WARRANT AND FOREVER DEFEND the title to the Trust Property unto Trustee. 

        TO
HAVE AND TO HOLD the Trust Property, together with all and singular the parts, rights, privileges, hereditaments, and appurtenances thereto in any ways belonging or appertaining, to
the use, benefit, and behoof of Trustee, its successors and assigns, in trust for the benefit of Beneficiary, in fee simple forever. Notwithstanding anything to the contrary contained in the
immediately preceding sentence, Grantor hereby agrees and acknowledges that the Indebtedness secured by this Deed of Trust includes a revolving loan and is intended to secure future advances;
accordingly, this Deed of Trust shall not be canceled by the full and complete repayment of the Indebtedness, so long as the Loan Agreement remains in force and effect. 

ARTICLE 3
  WARRANTIES, REPRESENTATIONS AND COVENANTS  

        Grantor warrants, represents and covenants to Beneficiary as follows: 

        Section 3.1    Title to Trust Property and Lien of this
Instrument.    Grantor (i) has good and indefeasible title to the Trust Property, in fee simple (to the extent that the Trust Property constitutes real
property), free and clear of any liens, claims or interests, except the Permitted Liens and (ii) has full power and lawful authority to encumber the Trust Property in the manner and form set
forth in this Deed of Trust. This Deed of Trust creates valid, enforceable first priority liens and security interests against the Trust Property. 

        Section 3.2    First Lien Status.    Grantor shall preserve and
protect the first lien and security interest status of this Deed of Trust and the other Loan Documents. If any lien or security interest, other than the Permitted Liens, is asserted against the Trust
Property, Grantor shall promptly, and at its expense, (a) give Beneficiary a detailed written notice of such lien or security interest (including origin, amount and other terms), and
(b) pay the underlying claim in full or take such other action so as to cause it to be released or contest the same in compliance with the requirements of the Loan Agreement (including the
requirement of providing a bond or other security satisfactory to Beneficiary). 

        Section 3.3    Payment and Performance.    Grantor shall pay
the Indebtedness when due under the Loan Documents and shall perform the Obligations in full when they are required to be performed. 

3

 

        Section 3.4    Replacement of Fixtures.    Grantor shall not,
without the prior written consent of Beneficiary, permit any of the Fixtures to be removed at any time from the Land or Improvements, unless the removed item is removed temporarily for maintenance and
repair or, if removed permanently, is obsolete and is replaced by an article of equal or better suitability and value, owned by Grantor subject to the liens and security interests of this Deed of
Trust and the other Loan Documents, and free and clear of any other lien or security interest except such as may be permitted under the Loan Agreement or first approved in writing by Beneficiary. 

        Section 3.5    Inspection.    Grantor shall permit Beneficiary
and its agents, representatives and employees to inspect the Trust Property and all books and records of Grantor located thereon. Provided that no Event of Default exists, all such inspection shall be
conducted at reasonable times and upon reasonable prior notice to Grantor. Beneficiary shall restore the Trust Property to the condition it was in immediately prior to such testing and investigation. 

        Section 3.6    Other Covenants.    All of the covenants in the
Loan Agreement are incorporated herein by reference and, together with covenants in this Article 3, shall, to the extent applicable, be covenants
running with the land. 

        Section 3.7    Condemnation Awards and Insurance Proceeds.    

        (a)    Condemnation Awards.    Grantor, immediately upon obtaining knowledge of the institution of any proceedings for
the condemnation of the Trust Property or any portion thereof, will notify Beneficiary of the pendency of such proceedings. Except as set forth in the Loan Agreement, Beneficiary may participate in
any such proceedings and Grantor from time to time will deliver to Beneficiary all instruments requested by it to permit such participation. Unless otherwise permitted to be retained by
Grantor under the Loan Agreement, Grantor assigns all awards and compensation to which it is entitled for any condemnation or other taking, or any purchase in lieu thereof, to Beneficiary and
authorizes Beneficiary to collect and receive such awards and compensation and to give proper receipts and acquittances therefor, subject to the terms of the Loan Agreement. Unless otherwise permitted
to be retained by Grantor under the Loan Agreement, Grantor hereby waives all rights to such awards and compensation described in the foregoing sentence. Grantor, upon the reasonable request by
Beneficiary, shall make, execute and deliver any and all instruments requested for the purpose of confirming the assignment of the aforesaid awards and compensation to Beneficiary free and clear of
any liens, charges or encumbrances of any kind or nature whatsoever. 

        (b)    Insurance Proceeds.    Pursuant to the terms of the Loan Agreement and to the extent assigned therein, Grantor
assigns to Beneficiary all proceeds of any insurance policies insuring against loss or damage to the Trust Property. 

        Section 3.8    Costs of Defending and Upholding the Lien.    If
any action or proceeding is commenced to which action or proceeding Trustee or Beneficiary is made a party or in which it becomes necessary for Trustee or Beneficiary to defend or uphold the lien of
this Deed of Trust including any extensions, renewals, amendments or modifications thereof, Grantor shall, on demand, reimburse Trustee and Beneficiary for all expenses (including, without limitation,
reasonable attorneys' fees and reasonable appellate attorneys' fees) incurred by Trustee or Beneficiary in any such action or proceeding and all such expenses shall be secured by this Deed of Trust.
In any action or proceeding to foreclose this Deed of Trust or to recover or collect the Indebtedness, the provisions of law relating to the recovering of costs, disbursements and allowances shall
prevail unaffected by this covenant. 

        Section 3.9    TRANSFER OF THE SECURED PROPERTY.    EXCEPT AS
EXPRESSLY PERMITTED PURSUANT TO THE TERMS OF THE LOAN AGREEMENT, GRANTOR SHALL NOT SELL, TRANSFER, PLEDGE, ENCUMBER, CREATE A SECURITY INTEREST IN, GROUND LEASE, OR OTHERWISE HYPOTHECATE, ALL OR ANY
PORTION OF THE TRUST PROPERTY WITHOUT THE PRIOR WRITTEN CONSENT OF BENEFICIARY. THE 

4

 

CONSENT
BY BENEFICIARY TO ANY SALE, TRANSFER, PLEDGE, ENCUMBRANCE, CREATION OF A SECURITY INTEREST IN, GROUND LEASE, OR OTHER HYPOTHECATION OF, ANY PORTION OF THE TRUST PROPERTY SHALL NOT BE DEEMED TO
CONSTITUTE A NOVATION OR A CONSENT TO ANY FURTHER SALE, TRANSFER, PLEDGE, ENCUMBRANCE, CREATION OF A SECURITY INTEREST IN, GROUND LEASE, OR OTHER HYPOTHECATION, OR TO WAIVE THE RIGHT OF BENEFICIARY,
AT ITS OPTION, TO DECLARE THE INDEBTEDNESS SECURED HEREBY IMMEDIATELY DUE AND PAYABLE, WITHOUT NOTICE TO GRANTOR OR ANY OTHER PERSON OR ENTITY, UPON ANY SUCH SALE, TRANSFER, PLEDGE, ENCUMBRANCE,
CREATION OF A SECURITY INTEREST, GROUND LEASE, OR OTHER HYPOTHECATION TO WHICH BENEFICIARY SHALL NOT HAVE CONSENTED. 

        Section 3.10    Security Deposits.    To the extent required by
law, or after an Event of Default has occurred and during its continuance, if required by Beneficiary, all security deposits of tenants of the Trust Property shall be treated as trust funds not to be
commingled with any other funds of Grantor. Within twenty (20) days after request by Beneficiary, Grantor shall furnish satisfactory evidence of compliance with this  Section 3.10, as necessary,
 together with a statement of all security deposits deposited by the tenants and copies of all Leases not theretofore
delivered to Beneficiary, as requested thereby, certified by Grantor. 

ARTICLE 4
  DEFAULT  

        Section 4.1    Events of Default.    The occurrence of any of
the following events shall constitute an event of default under this Deed of Trust (each an "Event of Default"): 

        (a)   an
"Event of Default" (as such term is defined in the Loan Agreement) shall have occurred; 

        (b)   Grantor's
breach of any of the covenants set forth in this Deed of Trust and such failure continues for a period of ten (10) Business Days; or 

        (c)   if
any material misstatement or misrepresentation exists as of the date made or deemed made in any warranty or representation set forth in  Article 3 hereof. 

5

  

 
 

ARTICLE 5
  REMEDIES AND FORECLOSURE    
    

        Section 5.1    Remedies.    If an Event of Default exists,
Beneficiary may, at Beneficiary's election and by or through Trustee or otherwise, exercise any or all of the following rights, remedies and recourses: 

	(a)
	To
the extent permitted under the Loan Agreement, declare the Indebtedness to be immediately due and payable, without further notice, presentment, protest, notice of intent to
accelerate, notice of acceleration, demand or action of any nature whatsoever (each of which hereby is expressly waived by Grantor), whereupon the same shall become immediately due and payable.

	(b)
	Notify
all tenants of the Premises and all others obligated on leases of any part of the Premises that all rents and other sums owing on leases have been assigned to Beneficiary and
are to be paid directly to Beneficiary, and to enforce payment of all obligations owing on leases, by suit, ejectment, cancellation, releasing, reletting or otherwise, whether or not Beneficiary has
taken possession of the Premises, and to exercise whatever rights and remedies Beneficiary may have under any assignment of rents and leases.

	(c)
	As
and to the extent permitted by law, enter the Trust Property, either personally or by its agents, nominees or attorneys, and take exclusive possession thereof and thereupon,
Beneficiary may (i) use, operate, manage, control, insure, maintain, repair, restore and otherwise deal with all and every part of the Premises and conduct business thereat;
(ii) complete any construction on the Premises in such manner and form as Beneficiary deems advisable in the reasonable exercise of its judgment; (iii) exercise all rights and power of
Grantor with respect to the Premises, whether in the name of Grantor, or otherwise, including, without limitation, the right to make, cancel, enforce or modify leases, obtain and evict tenants, and
demand, sue for, collect and receive all earnings, revenues, rents, issues, profits and other income of the Premises and every part thereof, which rights shall not be in limitation of Beneficiary's
rights under any assignment of rents and leases securing the Indebtedness; and (iv) pursuant to the provisions of the Loan Agreement, apply the receipts from the Premises to the payment of the
Indebtedness, after deducting therefrom all expenses (including attorneys' fees) incurred in connection with the aforesaid operations and all amounts necessary to pay the taxes, assessments, insurance
and other charges in connection with the Trust Property, as well as just and reasonable compensation for the services of Beneficiary, its counsel, agents and employees.

	(d)
	Hold,
lease, develop, manage, operate or otherwise use the Trust Property upon such terms and conditions as Beneficiary may deem reasonable under the circumstances (making such
repairs, alterations, additions and improvements and taking other actions, from time to time, as Beneficiary deems necessary or desirable), and apply all Rents and other amounts collected by Trustee
in connection therewith in accordance with the provisions of Section 5.7 hereof.

	(e)
	Require
Grantor to assemble any collateral under the UCC and make it available to Beneficiary, at Grantor's sole risk and expense, at a place or places to be designated by
Beneficiary, in its sole discretion.

	(f)
	Institute
proceedings for the complete foreclosure of this Deed of Trust, either by judicial action or by power of sale, in which case the Trust Property may be sold for cash or
credit in accordance with applicable law in one or more parcels as Beneficiary may determine. Except as otherwise required by applicable law, with respect to any notices required or permitted under
the UCC, Grantor agrees that ten (10) days' prior written notice shall be deemed commercially reasonable. At any such sale by virtue of any judicial proceedings, power of sale, 

6

 

or
any other legal right, remedy or recourse, the title to and right of possession of any such property shall pass to the purchaser thereof, and to the fullest extent permitted by law, Grantor shall
be completely and irrevocably divested of all of its right, title, interest, claim, equity, equity of redemption, and demand whatsoever, either at law or in equity, in and to the property sold and
such sale shall be a perpetual bar both at law and in equity against Grantor, and against all other Persons claiming or to claim the property sold or any part thereof, by, through or under Grantor.
Beneficiary or any of the Lenders may be a purchaser at such sale. If Beneficiary is the highest bidder, Beneficiary may credit the portion of the purchase price that would be distributed to
Beneficiary against the Indebtedness in lieu of paying cash. In the event this Deed of Trust is foreclosed by judicial action, appraisement and valuation of the Trust Property is waived. In the event
of any sale made under or by virtue of this Article 5 (whether made by virtue of judicial proceedings or of a judgment or decree of foreclosure
and sale) the entire Indebtedness, if not previously due and payable, immediately thereupon shall become due and payable. The failure to make any such tenants of the Premises party to any such
foreclosure proceedings and to foreclose their rights will not be, nor be asserted to be by Grantor, a defense to any proceedings instituted by Beneficiary to collect the sums secured hereby. 

	(g)
	With
or without entry, to the extent permitted and pursuant to the procedures provided by applicable law, institute proceedings for the partial foreclosure of this Deed of Trust for
the portion of the Indebtedness then due and payable (if Beneficiary shall have elected not to declare the entire Indebtedness to be immediately due and owing), subject to the continuing lien of this
Deed of Trust for the balance of the Indebtedness not then due; or (1) as and to the extent permitted by law, sell for cash or upon credit the Trust Property or any part thereof and all estate,
claim, demand, right, title and interest of Grantor therein, pursuant to power of sale or otherwise, at one or more sales, as an entity or in parcels, at such time and place, upon such terms and after
such notice thereof as may be required or permitted by law, and in the event of a sale, by foreclosure or otherwise, of less than all of the Trust Property, this Deed of Trust shall continue as a lien
on the remaining portion of the Trust Property; or (2) institute an action, suit or proceeding in equity for the specific performance of any covenant, condition or agreement contained herein or
in any Loan Document; or (3) to the extent permitted by applicable law, recover judgment on the Loan Agreement either before, during or after any proceedings for the enforcement of this Deed of
Trust.

	(h)
	Make
application to a court of competent jurisdiction for, and obtain from such court as a matter of strict right and without notice to Grantor or regard to the adequacy of the Trust
Property for the repayment of the Indebtedness, the appointment of a receiver of the Trust Property, and Grantor irrevocably consents to such appointment. Any such receiver shall have all the usual
powers and duties of receivers in similar cases, including the full power to rent, maintain and otherwise operate the Trust Property upon such terms as may be approved by the court, and shall apply
such Rents in accordance with the provisions of Section 5.7 hereof.

	(i)
	Exercise
all other rights, remedies and recourses granted under the Loan Documents or otherwise available at law or in equity. 

        Section 5.2    Separate Sales.    The Trust Property may be
sold in one or more parcels and in such manner and order as Trustee in its sole discretion may elect; the right of sale arising out of any Event of Default shall not be exhausted by any one or more
sales. 

        Section 5.3    Remedies Cumulative, Concurrent and
Nonexclusive.    Beneficiary and Trustee shall have all rights, remedies and recourses granted in the Loan Documents and available at law or equity (including the
UCC), which rights (a) shall be cumulated and concurrent, (b) may be pursued separately, successively or concurrently against Grantor or others obligated under the Loan Documents, 

7

 

or
against the Trust Property, or against any one or more of them, at the sole discretion of Beneficiary or Trustee, as the case may be, (c) may be exercised as often as occasion therefor shall
arise, and the exercise or failure to exercise any of them shall not be construed as a waiver or release thereof or of any other right, remedy or recourse, and (d) are intended to be, and shall
be, nonexclusive. No action by Beneficiary or Trustee in the enforcement of any rights, remedies or recourses under the Loan Documents or otherwise at law or equity shall be deemed to cure any Event
of Default. 

        Section 5.4    Release of and Resort to
Collateral.    Beneficiary may release, regardless of consideration and without the necessity for any notice to or consent by the holder of any subordinate lien on
the Trust Property, any part of the Trust Property without, as to the remainder, in any way impairing, affecting, subordinating or releasing the lien or security interest created in or evidenced by
the Loan Documents or their status as a first and prior lien and security interest in and to the Trust Property. For payment of the Indebtedness, Beneficiary may resort to any other security in such
order and manner as Beneficiary may elect. 

        Section 5.5    Waiver of Redemption, Notice and Marshalling of
Assets.    To the fullest extent permitted by law, Grantor hereby irrevocably and unconditionally waives and releases (a) all benefit that might accrue to
Grantor by virtue of any present or future statute of limitations or law or judicial decision exempting
the Trust Property from attachment, levy or sale on execution or providing for any stay of execution, exemption from civil process, redemption or extension of time for payment, (b) unless
otherwise required under any of the Loan Documents, all notices of any Event of Default or of any election by Trustee or Beneficiary to exercise or the actual exercise of any right, remedy or recourse
provided for under the Loan Documents, and (c) any right to a marshalling of assets or a sale in inverse order of alienation. 

        Section 5.6    Discontinuance of Proceedings.    If Beneficiary
or Trustee shall have proceeded to invoke any right, remedy or recourse permitted under the Loan Documents and shall thereafter elect to discontinue or abandon it for any reason, Beneficiary or
Trustee, as the case may be, shall have the unqualified right to do so and, in such an event, Grantor, Beneficiary and Trustee shall be restored to their former positions with respect to the
Indebtedness, the Obligations, the Loan Documents, the Trust Property and otherwise, and the rights, remedies, recourses and powers of Beneficiary and Trustee shall continue as if the right, remedy or
recourse had never been invoked, but no such discontinuance or abandonment shall waive any Event of Default which may then exist or the right of Beneficiary or Trustee thereafter to exercise any
right, remedy or recourse under the Loan Documents for such Event of Default. 

        Section 5.7    Application of Proceeds.    The proceeds of any
sale made under or by virtue of this Article 5, together with any Rents and other amounts generated by the holding, leasing, management,
operation or other use of the Trust Property, shall be applied by Beneficiary or Trustee (or the receiver, if one is appointed) in the following order unless otherwise required by applicable law: 

	(a)
	to
the payment of the costs and expenses of taking possession of the Trust Property and of holding, using, leasing, repairing, improving and selling the same, including, without
limitation (1) trustee's and receiver's fees and expenses, including the repayment of the amounts evidenced by any receiver's certificates, (2) court costs, (3) reasonable
attorneys' and accountants' fees and expenses, and (4) costs of advertisement;

	(b)
	to
the payment of the Indebtedness and performance of the Obligations in such manner and order of preference as set forth in the Loan Agreement; and

	(c)
	the
balance, if any, to the payment of the Persons legally entitled thereto. 

        Section 5.8    Occupancy After Foreclosure.    Except as
otherwise required by applicable law, any sale of the Trust Property or any part thereof in accordance with Section 5.1(e) or  Section 5.1(f)
hereof will divest all right, title and interest of Grantor in and to the property sold. Subject to applicable law, any
 

8

 

purchaser
at a foreclosure sale will receive immediate possession of the property purchased. If Grantor retains possession of such property or any part thereof subsequent to such sale, Grantor will be
considered a tenant at sufferance of the purchaser, and will, if Grantor remains in possession after demand to remove, be subject to eviction and removal, forcible or otherwise, with or without
process of law. 

        Section 5.9    Additional Advances and Disbursements; Costs of
Enforcement.    

	(a)
	If
any Event of Default exists, Beneficiary shall have the right, but not the obligation, to cure such Event of Default in the name and on behalf of Grantor. All sums advanced and
expenses incurred at any time by Beneficiary under this Section 5.9, or otherwise under this Deed of Trust or any of the other Loan Documents or
applicable law, shall bear interest from the date that such sum is advanced or expense incurred, to and including the date of reimbursement, computed at the rate or rates at which interest is then
computed on the Indebtedness, and all such sums, together with interest thereon, shall be secured by this Deed of Trust.

	(b)
	Grantor
shall pay all expenses (including reasonable attorneys' fees and expenses and all reasonable costs and expenses related to legal work, research and litigation) of or
incidental to the perfection and enforcement of this Deed of Trust and the other Loan Documents, or the enforcement, compromise or settlement of the Indebtedness or any claim under this Deed of Trust
and the other Loan Documents, and for the curing thereof, or for defending or asserting the rights and claims of Beneficiary in respect thereof, by litigation or otherwise. 

        Section 5.10    No Mortgagee in Possession.    Neither the
enforcement of any of the remedies under this Article 5, the assignment of the Rents and Leases under Article 6, the security interests
under Article 7, nor any other remedies afforded to Beneficiary under the Loan Documents, at law or in equity shall cause Beneficiary or Trustee
to be deemed or construed to be a mortgagee in possession of the Trust Property, to obligate Beneficiary or Trustee to lease the Trust Property or attempt to do so, or to take any action, incur any
expense, or perform or discharge any obligation, duty or liability whatsoever under any of the Leases or otherwise. 

        Section 5.11    WAIVER OF GRANTOR'S
RIGHTS.    BY EXECUTION OF THIS DEED OF TRUST, GRANTOR EXPRESSLY: (A) ACKNOWLEDGES THE RIGHT OF BENEFICIARY TO ACCELERATE THE
INDEBTEDNESS, IN THE MANNER SET FORTH IN THE LOAN AGREEMENT, EVIDENCED BY THE LOAN AGREEMENT OR OTHER LOAN DOCUMENTS UPON THE OCCURRENCE OF AN EVENT OF DEFAULT; (B) TO THE EXTENT ALLOWED BY
APPLICABLE LAW, AND EXCEPT AS SET FORTH IN ANY OF THE LOAN DOCUMENTS, WAIVES ANY AND ALL RIGHTS WHICH GRANTOR MAY HAVE UNDER THE CONSTITUTION OF THE UNITED STATES, THE VARIOUS PROVISIONS OF THE
CONSTITUTIONS FOR THE SEVERAL STATES, OR BY REASON OF ANY OTHER APPLICABLE LAW, TO NOTICE AND TO JUDICIAL HEARING PRIOR TO THE EXERCISE BY BENEFICIARY OF ANY RIGHT OR REMEDY HEREIN PROVIDED TO
BENEFICIARY; (C) ACKNOWLEDGES THAT GRANTOR HAS READ THIS DEED OF TRUST AND ITS PROVISIONS HAVE BEEN EXPLAINED FULLY TO GRANTOR AND GRANTOR HAS CONSULTED WITH LEGAL COUNSEL OF GRANTOR'S CHOICE
PRIOR TO EXECUTING THIS DEED OF TRUST; AND (D) ACKNOWLEDGES THAT ALL WAIVERS OF THE AFORESAID RIGHTS OF GRANTOR HAVE BEEN MADE KNOWINGLY, INTENTIONALLY AND WILLINGLY BY GRANTOR AS PART OF A
BARGAINED FOR LOAN TRANSACTION.

ARTICLE 6
  ASSIGNMENT OF RENTS AND LEASES  

        Section 6.1    Assignment.    In furtherance of and in addition
to the assignment made by Grantor in Section 2.1 of this Deed of Trust, Grantor hereby absolutely and unconditionally assigns, sells, transfers
and conveys to Trustee (for the benefit of Beneficiary) and to Beneficiary all of its right, title and 

9

 

interest
in and to all Leases, whether now existing or hereafter entered into, and all of its right, title and interest in and to all Rents. This assignment is an absolute assignment and not an
assignment for additional security only. So long as no Event of Default shall have occurred and be continuing and to the extent not prohibited by the Loan Agreement, Grantor shall have a revocable
license from Trustee and Beneficiary to exercise all rights extended to the landlord under the Leases, including the right to receive and collect all Rents and to hold the Rents in trust for use in
the payment and performance of the Obligations and to otherwise use the same. The foregoing license is granted subject to the conditional limitation that no Event of Default shall have occurred and be
continuing. Upon the occurrence and during the continuance of an Event of Default, whether or not legal proceedings have commenced, and without regard to waste, adequacy of security for the
Obligations or solvency of Grantor, the license herein granted shall automatically expire and terminate, without notice by Trustee or Beneficiary (any such notice being hereby expressly waived by
Grantor). 

        Section 6.2    Perfection Upon Recordation.    Grantor
acknowledges that Beneficiary and Trustee have taken all actions necessary to obtain, and that upon recordation of this Deed of Trust and the filing of appropriate UCC financing statements,
Beneficiary and Trustee shall have, to the extent permitted under applicable law, a valid and fully perfected, first priority (subject to Permitted Liens), present
assignment of the Rents arising out of the Leases and all security for such Leases. Grantor acknowledges and agrees that upon recordation of this Deed of Trust Trustee's and Beneficiary's interest in
the Rents shall be deemed to be fully perfected, "choate" and enforced as to Grantor and all third parties, including, without limitation, any subsequently appointed trustee in any case under Title 11
of the United States Code (the "Bankruptcy Code"), without the necessity of commencing a foreclosure action with respect to this Deed of Trust, making
formal demand for the Rents, obtaining the appointment of a receiver or taking any other affirmative action. 

        Section 6.3    Bankruptcy Provisions.    Without limitation of
the absolute nature of the assignment of the Rents hereunder, Grantor, Trustee and Beneficiary agree that (a) this Deed of Trust shall constitute a "security agreement" for purposes of
Section 552(b) of the Bankruptcy Code, (b) the security interest created by this Deed of Trust extends to property of Grantor acquired before the commencement of a case in bankruptcy and
to all amounts paid as Rents and (c) such security interest shall extend to all Rents acquired by the estate after the commencement of any case in bankruptcy. 

        Section 6.4    No Merger of Estates.    So long as part of the
Indebtedness and the Obligations secured hereby remain unpaid and undischarged, the fee and leasehold estates to the Trust Property shall not merge, but shall remain separate and distinct,
notwithstanding the union of such estates either in Grantor, Beneficiary, any tenant or any third party by purchase or otherwise. 

ARTICLE 7
  SECURITY AGREEMENT  

        Section 7.1    Security Interest.    This Deed of Trust
constitutes a "security agreement" on personal property within the meaning of the UCC and other applicable law and with respect to the Fixtures, Leases, Rents, Deposit Accounts, Property Agreements,
Tax Refunds, Proceeds, Insurance and Condemnation Awards. To this end, Grantor grants to Beneficiary a first and prior security interest, subject to the Permitted Liens, in the Fixtures, Leases,
Rents, Deposit Accounts, Property Agreements, Tax Refunds, Proceeds, Insurance and Condemnation Awards and all other Trust Property which is personal property to secure the payment of the Indebtedness
and performance of the Obligations, and agrees that Beneficiary shall have all the rights and remedies of a secured party under the UCC with respect to such property. Any notice of sale, disposition
or other intended action by Beneficiary with respect to the Fixtures, Leases, Rents, Deposit Accounts, Property Agreements, Tax Refunds, Proceeds, Insurance and Condemnation Awards sent to Grantor at
least ten (10) days prior to any action under the UCC shall constitute reasonable notice to Grantor. THE TERM "TRUST PROPERTY" IS INTENDED TO EXCLUDE ALL ITEMS OF PERSONAL PROPERTY IN WHICH
BENEFICIARY 

10

 

HAS
OBTAINED AND/OR PERFECTED A SECURITY INTEREST UNDER SEPARATE INSTRUMENTS. 

        Section 7.2    Financing Statements.    Grantor shall execute
and deliver to Beneficiary, in form and substance satisfactory to Beneficiary, such financing statements and such further assurances as Beneficiary may, from time to time, reasonably consider
necessary to create, perfect and preserve Beneficiary's security interest hereunder and Beneficiary may cause such statements and assurances to be recorded and filed, at such times and places as may
be required or permitted by law to so create, perfect and preserve such security interest. Grantor's state of organization is the State of Washington. 

        Section 7.30    Fixture Filing.    This Deed of Trust shall
also constitute a "fixture filing" for the purposes of the UCC against all of the Trust Property which is or is to become fixtures. Information concerning the security interest herein granted may be
obtained at the address of Debtor (Grantor) and Secured Party (Beneficiary) as set forth in the first paragraph of this Deed of Trust. 

ARTICLE 8
  CONCERNING THE TRUSTEE  

        Section 8.1    Certain Rights.    With the approval of
Beneficiary, Trustee shall have the right to select, employ and consult with counsel. Trustee shall have the right to rely on any instrument, document or signature authorizing or supporting any action
taken or proposed to be taken by it hereunder, believed by it in good faith to be genuine. Subject to applicable law, Trustee shall be entitled to reimbursement for actual, reasonable expenses
incurred by it in the performance of its duties and to reasonable compensation for Trustee's services hereunder as shall be rendered. Grantor shall, from time to time, pay the compensation due to
Trustee hereunder and reimburse Trustee for, and indemnify, defend and save Trustee harmless against, all liability and reasonable expenses which may be incurred by it in the performance of its
duties, including those arising from joint, concurrent, or comparative negligence of Trustee; however, Grantor shall not be liable under such indemnification to the extent such liability or expenses
result solely from Trustee's or Beneficiary's gross negligence or willful misconduct. Grantor's obligations under this Section 8.1 shall not be
reduced or impaired by principles of comparative or contributory negligence. 

        Section 8.2    Retention of Money.    All moneys received by
Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received, but need not be segregated in any manner from any other moneys (except to the
extent required by law), and Trustee shall be under no liability for interest on any moneys received by him hereunder. 

        Section 8.3    Successor Trustees.    If Trustee or any
successor Trustee shall die, resign or become disqualified from acting in the execution of this trust, or Beneficiary shall desire to appoint a substitute Trustee, Beneficiary shall have full power to
appoint one or more substitute Trustees and, if preferred, several substitute Trustees in succession who shall succeed to all the estates, rights, powers and duties of Trustee. Such appointment may be
executed by any authorized agent of Beneficiary and as so executed,
such appointment shall be conclusively presumed to be executed with authority, valid and sufficient, without further proof of any action. 

        Section 8.4    Perfection of Appointment.    Should any deed,
conveyance or instrument of any nature be required from Grantor by any successor Trustee to more fully and certainly vest in and confirm to such successor Trustee such estates, rights, powers and
duties, then, upon request by such Trustee, all such deeds, conveyances and instruments shall be made, executed, acknowledged and delivered and shall be caused to be recorded and/or filed by Grantor. 

        Section 8.5    Trustee Liability.    In no event or
circumstance shall Trustee or any substitute Trustee hereunder be personally liable under or as a result of this Deed of Trust, either as a result of any action by Trustee (or any substitute Trustee)
in the exercise of the powers hereby granted or otherwise. 

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ARTICLE 9
  MISCELLANEOUS    
    

        Section 9.1    Notices.    Any notice required or permitted to
be given under this Deed of Trust shall be given in accordance with Section 12 of the Loan Agreement. 

        Section 9.2    Covenants Running with the Land.    All
Obligations contained in this Deed of Trust are intended by Grantor, Beneficiary and Trustee to be, and shall be construed as, covenants running with the Trust Property. As used herein, "Grantor"
shall refer to the party named in the first paragraph of this Deed of Trust and to any subsequent owner of all or any portion of the Trust Property. All Persons who may have or acquire an interest in
the Trust Property shall be deemed to have notice of, and be bound by, the terms of the Loan Agreement and the other Loan Documents; however, no such party shall be entitled to any rights thereunder
without the prior written consent of Beneficiary. 

        Section 9.3    Attorney-in-Fact.    Pursuant
to the terms of Section 4.5 of the Loan Agreement to the extent granted by and as limited by such Section, Grantor hereby irrevocably appoints Beneficiary and its successors and assigns, as its
attorney-in-fact, which agency is coupled with an interest. 

        Section 9.4    Successors and Assigns.    This Deed of Trust
shall be binding upon and inure to the benefit of Beneficiary, the Lenders, Trustee and Grantor and their respective successors and assigns. Grantor shall not, without the prior written consent of
Beneficiary, assign any rights, duties or obligations hereunder. 

        Section 9.5    No Waiver.    Any failure by Beneficiary, the
Lenders or Trustee to insist upon strict performance of any of the terms, provisions or conditions of the Loan Documents shall not be deemed to be a waiver of same, and Beneficiary, the Lenders or
Trustee shall have the right at any time to insist upon strict performance of all such terms, provisions and conditions. 

        Section 9.6    Loan Agreement.    If any conflict or
inconsistency exists between this Deed of Trust and the Loan Agreement, the Loan Agreement shall govern. 

        Section 9.7    Release or Reconveyance.    Upon payment in full
of the Indebtedness and performance in full of the Obligations (other than contingent indemnification obligations), Beneficiary, at Grantor's expense, shall release the liens and security interests
created by this Deed of Trust or reconvey the Trust Property to Grantor. Beneficiary shall also release Beneficiary's lien and security interest created by this Deed of Trust or reconvey the Trust
Property to Grantor upon the satisfaction of the release conditions contained in Section 3.5 or elsewhere in the Loan Agreement. 

        Section 9.8    Waiver of Stay, Moratorium and Similar
Rights.    Grantor agrees, to the full extent that it may lawfully do so, that it will not at any time insist upon or plead or in any way take advantage of any stay,
marshalling of assets, extension, redemption or moratorium law now or hereafter in force and effect so as to prevent or hinder the enforcement of the provisions of this Deed of Trust or the
Indebtedness secured hereby, or any agreement between Grantor and Beneficiary or any rights or remedies of Beneficiary or Trustee. 

        Section 9.9    Applicable Law.    The provisions of this Deed
of Trust regarding the creation, perfection and enforcement of the liens and security interests herein granted shall be governed by and construed under the laws of the state in which the Trust
Property is located. All other provisions of this Deed of Trust shall be governed by the laws of the State of New York, including Section 5-1401 of the General Obligations Law of
the State of New York, but otherwise without regard to conflicts of law principles. 

        Section 9.10    Headings.    The Article, Section and
Subsection titles hereof are inserted for convenience of reference only and shall in no way alter, modify or define, or be used in construing, the text of such Articles, Sections or Subsections. 

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        Section 9.11    Entire Agreement.    This Deed of Trust and the
other Loan Documents embody the entire agreement and understanding between Grantor and Beneficiary and supersede all prior agreements and understandings between such parties relating to the subject
matter hereof and thereof. Accordingly, the Loan Documents may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral
agreements between the parties. 

        Section 9.12    Beneficiary as Agent; Successor Agents.    

	(a)
	Agent
has been appointed to act as Agent hereunder by the Lender Group. Agent shall have the right hereunder to make demands, to give notices, to exercise or refrain from exercising
any rights, and to take or refrain from taking any action (including, without limitation, the release or substitution of the Trust Property) in accordance with the terms of the Loan Agreement, any
related agency agreement among Agent and the Lender Group (collectively, as amended, supplemented or otherwise modified or replaced from time to time, the "Agency
Documents") and this Deed of Trust. Grantor and all other persons shall be entitled to rely on releases, waivers, consents, approvals, notifications and other acts of Agent,
without inquiry into the existence of required consents or approvals of the Lender Group therefor.

	(b)
	Beneficiary
shall at all times be the same Person that is Agent under the Agency Documents. Written notice of resignation by Agent pursuant to the Agency Documents shall also
constitute notice of resignation as Agent under this Deed of Trust. Removal of Agent pursuant to any provision of the Agency Documents shall also constitute removal as Agent under this Deed of Trust.
Appointment of a successor Agent pursuant to the Agency Documents shall also constitute appointment of a successor Agent under this Deed of Trust. Upon the acceptance of any appointment as Agent by a
successor Agent under the Agency Documents, that successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Agent as the
Beneficiary under this Deed of Trust, and the retiring or removed Agent shall promptly (i) assign and transfer to such successor Agent all of its right, title and interest in and to this Deed
of Trust and the Trust Property, and (ii) execute and deliver to such successor Agent such assignments and amendments and take such other actions, as may be necessary or appropriate in
connection with the assignment to such successor Agent of the liens and security interests created hereunder, whereupon such retiring or removed Agent shall be discharged from its duties and
obligations under this Deed of Trust. After any retiring or removed Agent's resignation or removal hereunder as Agent, the provisions of this Deed of Trust and the Agency Documents shall inure to its
benefit as to any actions taken or omitted to be taken by it under this Deed of Trust while it was the Agent hereunder.

	(c)
	Each
reference herein to any right granted to, benefit conferred upon or power exercisable, exercised or action taken by the "Beneficiary" shall be deemed to be a reference to or be
deemed to have been so taken, as the case may be, by Beneficiary in its capacity as Agent pursuant to the Loan Agreement for the benefit of the Lender Group, all as more fully set forth in the Loan
Agreement. 

 
 

ARTICLE 10
  LOCAL LAW PROVISIONS    
    

        Section 10.1    No Agricultural Purpose.    No portion of the
Trust Property is or will be used principally for agricultural purposes. 

        Section 10.2    Obligations Not Personal.    The obligations
evidenced hereby were not incurred primarily for personal, family or household purposes. 

        Section 10.3    Oral
Agreements.    ORAL AGREEMENTS OR ORAL COMMITEMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF DEBT ARE NOT
ENFORCEABLE UNDER WASHINGTON LAW.

[The remainder of this page has been intentionally left blank]

13

  

        IN WITNESS WHEREOF, Grantor has on the date set forth in the acknowledgement hereto, effective as of the date first above written, caused
this instrument to be duly EXECUTED AND DELIVERED by authority duly given. 

	GRANTOR:	 	INTERDENT SERVICE CORPORATION, a Washington a corporation
	

 	
 	
By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	 	

	 	 	Its:	 
	 	 	 	

14

 

	STATE OF [                        ]	 	)	 	 
	 	 	) ss.	 	 
	COUNTY OF [                        ]	 	)	 	 

        On                        ,
2004, before me, the undersigned, Notary Public in and for said State and County, personally appeared                        ,
personally known to me (or proved to me on the
basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity(ies) upon behalf of which the person(s) acted, executed the instrument. 

	WITNESS my hand and official seal.	 	 	 
	

    
 Notary Public	
 	

 	

 

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Exhibit A    

PARCEL 1 

        That
portion of the W.R. Anderson Donation Land Claim in the Northeast quarter of Section 10, and the Northwest quarter of Section 11, Township 2 North, Range 1 East of the
Willamette Meridian in Clark County, Washington, described as follows: 

        BEGINNING
at a point South 89°00'39" East 142.83 feet and South 0°35'13" West 152.68 feet from the Northwest corner of said Section 11, said point being on
that certain line described in instrument recorded under Auditor's File No. 8504190035; thence South 0°22'32" West 139.78 feet to the Northeast corner of that first described tract
as conveyed to David P. Lasher, et ux, by deed recorded under Auditor's File No. G 67317; thence North 81°00'48" West 155.64 feet to the Northwest corner of Lasher tract, said point
being on the Easterly line of Highway 99; thence North 08°59'13" East, along said Easterly line of Highway 99, a distance of 133.92 feet; thence South 82°50'01" East, 134.78
feet to the point of beginning. 

PARCEL II 

        That
portion of the W.R. Anderson Donation Land Claim in the Northeast quarter of Section 10, and the Northwest quarter of Section 11, Township 2 North, Range 1 East of the
Willamette Meridian in Clark County, Washington, described as follows: 

        BEGINNING
at the Southeast corner of that tract conveyed to A.R. Erlandson, et ux, by deed recorded under Auditor's File No. G 248823, said point being South 89°00'30"
East 142.83 feet and South 0°35'13" West 152.68 feet from the Northwest corner of said Section 11; thence South 0°22'32" West 139.78 feet to the Northeast corner of that
first described tract as conveyed to David P. Lasher, et ux, by deed recorded under Auditor's File No. G 67317, to the true point of beginning; thence North 0°22'32" East 139.78
feet; thence South 82°50'01" East 18 feet; thence Southwest to a point which is 8 feet Southeast of the true point of beginning; thence North 81°00'48" West 8 feet to the true
point of beginning. 

16

QuickLinks

Exhibit 10.12

ARTICLE 5 REMEDIES AND FORECLOSURE

ARTICLE 9 MISCELLANEOUS

ARTICLE 10 LOCAL LAW PROVISIONS

Exhibit A

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