Document:

LEASE
      OF SPACE

    (Single-Story
      Office)

    

    This
      Lease is made as of June
      19,
      2006, between Clairbridge Companies, LLC a Colorado limited liability Company
      (“CLAIRBRIDGE
      LLC”),
      as
      the “Landlord”
and
      Solera National Bancorp, Inc., a
      Delaware corporation (“Tenant”).

    

    I. GENERAL.

    

    1.1 Consideration.
      Landlord
      enters into this Lease in consideration of the payment by Tenant of the rents
      herein reserved and the keeping, observance and performance by Tenant of the
      covenants and agreements of Tenant herein contained.

    

    1.2 Exhibits
      and Addenda to Lease.
      The
      Summary of Basic Lease Terms (“Summary”), Attachments, Exhibits and Addenda
      listed below shall be attached to this Lease and be deemed incorporated in
      this
      Lease by this reference. In the event of any inconsistency between such Summary,
      Attachments, Exhibits and Addenda and the terms and provisions of this Lease,
      the terms and provisions of the Summary, Attachments, Exhibits and Addenda
      shall
      control. The Summary, Attachments, Exhibits and Addenda to this Lease
      are:

    

    Summary
      of Basic Lease Terms

    Exhibit
      A
      - Legal Descriptions of Land and Project

    Exhibit
      B
      - Location of Demised Premises Within Building

    Exhibit
      C
      - Rules & Regulations

    Exhibit
      D
      - Signage Specifications

    Exhibit
      E
      - Space Plan

    Exhibit
      F
      - Work Letter

    Exhibit
      G- Addendum to Lease

    Exhibit
      H- Site plan designating Parking Spaces

    

    II. DEFINITIONS;
      DEMISE OF PREMISES.

    

    2.1 Demise.
      Subject
      to the provisions, covenants and agreements herein contained, Landlord hereby
      leases and demises to Tenant, and Tenant hereby leases from Landlord, the
      Demised Premises as hereinafter defined, for the Lease Term as hereinafter
      defined, subject to existing covenants, conditions, restrictions, easements
      and
      encumbrances affecting the same.

    

    2.2 Demised
      Premises.
      The
“Demised
      Premises”
shall
      mean the space to be occupied by Tenant as depicted in Exhibit B attached
      hereto and cross-hatched thereon. The depiction of the Demised Premises on
      Exhibit “B”
      contains
      approximately the number of square feet of rentable
      floor
      area ("Floor
      Area")
      set
      forth in the Summary, which depiction is herein referred to as the “Space
      Plan”.
      The
      Demised Premises are within the Building which is located on the Land, as the
      terms Building and Land are hereinafter defined. 

    

    2.3 Area
      and Address.
      The
      Demised Premises contains approximately the Floor Area set forth in the Summary.
      The address of the Demised Premises is the address set forth in the
      Summary.

    

    2.4 Land.
      “Land”
shall
      mean the parcel of real property more particularly described as the Land in
      Exhibit A attached hereto.

    

    
      
        
        

      

      
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    2.5 Building.
      “Building”
shall
      mean the building containing the Demised Premises, which is constructed on
      the
      Land and contains approximately the Floor Area set forth on the
      Summary.

    

    2.6 Improvements.
      “Improvements”
shall
      mean the Building, the Parking Area as hereinafter defined, and all other
      fixtures and improvements owned by Landlord on the Land, including landscaping
      thereon.

    

    2.7 Project.
      “Project”
shall
      mean the buildings and other improvements constructed or hereafter constructed
      on the Land described as the Project on Exhibit “A”
      attached
      hereto.

    

    2.8 Property.
      “Property”
shall
      mean the Land, the Building and the Improvements and any fixtures and personal
      property used in operation and maintenance of the Land, Building and
      Improvements other than fixtures and personal property of Tenant and other
      users
      of space in the Building.

    

    2.9 Common
      Facilities.
      “Common
      Facilities”
shall
      mean all of the Property except (a) the Demised Premises and (b) the other
      premises in the Building leased or held for lease to other tenants. Common
      Facilities shall include the Parking Area and any walks, driveways, and, if
      applicable, lobby areas, halls, stairs, elevators, restrooms and all other
      interior areas in the Building, or exterior areas, including monument sign
      designated
      by Landlord from time to time as Common Facilities for common use of Tenant
      and
      other users of space in the Building or the Project. If Landlord so elects,
      the
      Common Facilities shall also include any portions of the Common Facilities
      of
      the Project designated by Landlord from time to time.

    

    2.10 Parking
      Area.
      “Parking
      Area”
shall
      mean that portion of the Common Facilities, shown on Exhibit H which
      is
      paved
      and for the parking of motor vehicles, as designated by Landlord from time
      to
      time.

    

    2.11 Use
      of Common Facilities and Parking Area.
      Tenant
      is hereby granted the non-exclusive right and license to use, in common with
      others entitled to such use, the Common Facilities, as it from time to time
      exists, subject to the rights of Landlord reserved herein. Tenant shall not
      interfere, at any time, with the rights of Landlord and others entitled to
      use
      any part of the Common Facilities, and shall not store, either permanently
      or
      temporarily, any materials, supplies or equipment in or on the Common
      Facilities. Landlord shall have the right, at any time, to change, reduce or
      otherwise alter the Common Facilities which may impact the Demised Premises,
      in
      its sole and subjective discretion and without compensation to Tenant, provided,
      however, such change (a) does not reduce the number of Tenant’s parking
      spaces provided in the Summary, and (b) permits reasonable access to
      loading areas and to the Demised Premises, subject to the provisions of
Section
      2.12.
      Landlord may use any of the Common Facilities, including one or more street
      entrances to the Project, as are necessary in Landlord’s judgment, for the
      purpose of completing or making repairs or alterations in any portion of the
      Project. Landlord reserves the right to the roof, the demising floors, walls
      and
      ceilings, and the exterior walls of the Building, and all telecommunications
      and
      utilities chases, ducts or other passageways located within the Demised
      Premises, the Building or the Project (the “Reserved
      Area”).
      The
      installation of any telecommunications or utilities wires, cables or other
      equipment or facilities in the Reserved Area by Tenant or any other service
      provider of Tenant shall be subject to the prior written approval of Landlord,
      not to be unreasonably withheld.
      Landlord shall be entitled to allocate the available space in the Reserved
      Area
      as Landlord determines from time to time. If Landlord determines that Tenant’s
      use of the Reserved Area shall require additional improvements or other costs
      to
      Landlord, Landlord shall be entitled to charge such costs to Tenant as a
      condition precedent to its consent.

    

    
      
        
        

      

      
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    2.12 Covenant
      of Quiet Enjoyment.
      Landlord covenants and agrees that, provided a Default (as hereinafter defined)
      by Tenant has not occurred, and provided that Tenant keeps, observes and
      performs its covenants and agreements contained in this Lease, Tenant shall
      have
      quiet possession of the Demised Premises and such possession shall not be
      disturbed or interfered with by Landlord. Landlord shall under no circumstances
      be held responsible for restriction or disruption of access to the Project
      from
      public streets caused by construction work or other actions taken by
      governmental authorities or other tenants (their employees, agents, visitors,
      contractors or invitees) or any other cause not entirely within Landlord’s
      direct control, and such circumstances shall not constitute a constructive
      eviction of Tenant nor give rise to any right of Tenant against
      Landlord.

    

    2.13 Condition
      of Demised Premises.
      Except
      as may be provided in the Work Letter attached hereto, Tenant covenants and
      agrees that, upon taking possession of the Demised Premises, Tenant shall be
      deemed to have accepted the Demised Premises “as is” and Tenant shall be deemed
      to have waived any warranty of condition or habitability, suitability for
      occupancy, use or habitation, fitness for a particular purpose or
      merchantability, express or implied, relating to the Demised Premises. Except
      of
      any “Punch List” items agreed to by Landlord and Tenant pursuant to the Work
      Letter, and any latent defects
      Tenant’s acceptance of the Demised Premises shall constitute its acknowledgment
      that the Demised Premises was in good condition, order and repair at the time
      of
      such acceptance including, without limitation, all doors,
      and all
      other mechanical and electrical systems. Notwithstanding the foregoing, Landlord
      represents to Tenant that, upon completion of the Landlord Work, as of the
      Commencement Date, the Demised Premises will be in material compliance with
      all
      applicable governmental building codes and regulations governing access,
      including the Americans With Disabilities Act (“Access
      Regulations”).
      Landlord makes no representation and has no obligations with respect to any
      modifications or amendments to the Access Regulations that may arise after
      the
      Commencement Date.

    

    2.14 Relocation.
      Intentionally Deleted

    

    III. TERM
      OF LEASE.
      

    

    3.1 “Initial
      Lease Term”
shall
      mean the period of time specified in the Summary commencing at noon on the
      Commencement Date specified in the Summary and expiring at noon on the
      Expiration Date described in the Summary (the Initial Lease Term together with
      any extensions thereof is herein referred to as the “Lease
      Term”).

    

    3.2  Early
      Occupancy.
      If
      Tenant desires to take possession of the Demised Premises prior to the
      Commencement Date, Tenant shall obtain the written consent of Landlord. If
      Tenant takes possession of the Demised Premises prior to the Commencement Date,
      for installation of telephone, computer equipment
      and cabling, except the obligation to pay rent all provisions of this Lease
      shall be effective as of the date Tenant so takes possession. If the Initial
      Lease Term shall begin on a day other than the first day of a calendar month,
      the monthly installment of Basic Rent for the fractional month at the beginning
      of the Initial Lease Term shall be prorated based upon a thirty (30) day month,
      and shall be paid on the date of the beginning of the Initial Lease Term. Upon
      written request to Landlord, Tenant shall be permitted to gain access (but
      not
      possession) of the Demised Premises for up to 45 days
      prior to
      the Commencement Date for the sole purpose of installation of
      cabling
      equipment and furnishings, all at Tenant’s sole cost and expense. 

    

    3.3  Rent
      Abatement.
      If, for
      any reason (other than Tenant Delay), Substantial Completion of the Landlord
      Work (as defined in the Work Letter attached hereto as Exhibit
      “F”)
      has not
      occurred by October 15, 2006, Tenant's obligation to pay Basic Rent and
      Additional Rent shall be abated for each day after October 15, 2006 until
      the date Substantial Completion of the Landlord Work occurs; the Lease shall
      remain in full force and effect and the Tenant shall have no right to rescind
      or
      cancel the same. Landlord's agreement to defer Tenant's obligation for Basic
      Rent and Additional Rent owing hereunder during such abatement period shall
      be
      in full satisfaction of any and all claims or amounts which Tenant might
      otherwise be able to claim as a result of such delay in Landlord's delivery
      of
      possession of Premises. For example, if Substantial Completion occurs
      November 1, 2006, Tenant will be entitled to 15 days of rent abatement and
      will commence paying rent on November 15, 2006 even though the Commencement
      Date is November 1, 2006.

    

    
      
        
        

      

      
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    IV. RENT
      AND OTHER AMOUNTS PAYABLE.

    

    4.1 Basic
      Rent.
      Tenant
      covenants and agrees to pay to Landlord, without offset, reduction, deduction,
      counterclaim or abatement, basic rent for the Lease Term in the amount specified
      as basic rent in the Summary (“Basic
      Rent”).
      The
      term “year” and subsequent years as described in the Summary shall mean:
      (a) as to the first year of the Lease Term, the period of time beginning on
      the Commencement Date of the Lease Term and ending on December 31st
      of the
      calendar month in which the Commencement Date occurs; and (b) for
      subsequent years, the corresponding period of time commencing upon the
      expiration of the previous year and ending one (1) year thereafter.

    

    4.2 Monthly
      Payments.
      Basic
      Rent shall be payable monthly in advance, without notice, in equal installments
      in the amount of monthly rent specified in the Summary. The first such monthly
      installment shall be due and payable upon the commencement date
      and a
      like monthly installment shall be due and payable on or before the first day
      of
      each calendar month succeeding the Commencement Date recited in the Summary
      during the Lease Term, except that the rental payment for any fractional
      calendar month at the commencement or end of the Lease Term shall be prorated
      based on a thirty (30) day month. Acceptance of Basic Rent or any other sums
      payable by Tenant to Landlord from anyone other than Tenant shall not be
      construed as a waiver by Landlord, nor as a release of Tenant, but the same
      shall be taken to be a payment on account of Tenant.

    

    4.3 Place
      of Payments.
      Basic
      Rent and all other sums payable by Tenant to Landlord under this Lease shall
      be
      paid to Landlord at the place for payments specified in the Summary, or such
      other place as Landlord may, from time to time, designate in
      writing.

    

    4.4 Lease
      a Net Lease and Rent Absolute.
      It is
      the intent of the parties that the Basic Rent provided in this Lease shall
      be a
      net payment to Landlord; that this Lease shall continue for the full Lease
      Term
      notwithstanding any occurrence preventing or restricting use and occupancy
      of
      the Demised Premises, including any damage or destruction affecting the Demised
      Premises, and any action by governmental authority relating to or affecting
      the
      Demised Premises, except as otherwise specifically provided in this Lease;
      that
      the Basic Rent and Additional Rent shall be absolutely payable without offset,
      reduction, deduction, counterclaim, or abatement for any cause except as
      otherwise specifically provided in this Lease; that Landlord shall not bear
      any
      costs or expenses relating to the Demised Premises or provide any services
      or do
      any act in connection with the Demised Premises except as otherwise specifically
      provided in this Lease; and that Tenant shall pay, in addition to Basic Rent,
      Additional Rent to cover costs and expenses relating to the Demised Premises,
      the Common Facilities, and the Property, all as hereinafter
      provided.

    

    4.5 Additional
      Rent.
      Tenant
      covenants and agrees to pay, as additional rent under this Lease (“Additional
      Rent”),
      without offset, reduction, deduction, counterclaim or abatement, all costs
      and
      expenses relating to the use, operation, maintenance and repair of the Demised
      Premises by Tenant; Tenant’s Pro Rata Share (as defined in Section
      4.6)
      of the
      Common Facilities Charges (as defined in Section
      7.2);
      Tenant’s Pro Rata Share of all Taxes (as defined in Section
      5.1)
      and
      Landlord’s Insurance (as defined in Section 4.7); and all other costs and
      expenses which Tenant is obligated to pay to Landlord or any other person or
      entity under this Lease, whether or not stated or characterized as Additional
      Rent.

    

    
      
        
        

      

      
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    4.6 Tenant’s
      Pro Rata Share.
      “Tenant’s
      Pro Rata Share”
shall
      mean the percentage set forth in the Summary as Tenant’s Pro Rata Share which is
      the percentage derived by dividing the approximate Floor Area of the Demised
      Premises, as initially set forth in the Summary, by the approximate Floor Area
      of the Building or the Project, as the case may be, as initially set forth
      in
      the Summary. Landlord and Tenant agree that such approximations of Floor Area
      of
      the Demised Premises, the Building and the Project are reasonable, and that
      the
      calculations of Basic Rent and Tenant’s Pro Rata Share based on such
      approximations are not subject to revision under any circumstances, except
      as
      expressly provided in this Section
      4.6.
      If the
      Floor Area of the Demised Premises, the Building, or the Project are ever
      remeasured, the result may only be used to adjust the identification thereof,
      and neither Landlord nor Tenant shall be entitled to claim an increase or
      decrease in the amount of the monthly Basic Rent specified in the Summary or
      the
      amount of Tenant’s Pro Rata Share specified in the Summary based upon such
      remeasurement. The Demised Premises shall be approximately as depicted in the
      Space Plan, provided, however, in no event shall Landlord be liable to Tenant
      or
      Tenant have any claims or rights against Landlord if the actual Floor Area
      of
      the Demised Premises is different than the estimated Floor Area of the Demised
      Premises herein provided. Notwithstanding anything to the contrary, if Landlord
      from time to time increases or reduces the Floor Area of the Building or
      constructs additional building(s) upon the Land or the Project, as the case
      may
      be, then Landlord shall recalculate Tenant’s Pro Rata Share using the formulas
      hereinabove set forth based upon the added or reduced Floor Area. Landlord
      shall
      be entitled to provide services for the Common Facilities for either the
      Building or the Project, as Landlord determines from time to time. Landlord
      shall be entitled to charge from time to time all or any item of the Common
      Facilities Charges, Taxes, Landlord’s Insurance, or any other Additional Rent on
      the basis of either the Building or the Project. For all items to be charged
      for
      the Building, the Tenant’s Pro Rata Share of the Building shall be used and, for
      all items relating to the Project, Tenant’s Pro Rata Share of the Project shall
      be used for the purposes of calculating such items, as determined by
      Landlord.

    

    4.7 Monthly
      Deposits.
      Tenant
      shall pay, as Additional Rent, to Landlord, as a monthly deposit (“Monthly
      Deposit”),
      in
      advance, without notice, on the day that payment of Basic Rent is due, an amount
      equal to 1/12 of Landlord’s estimate of Tenant’s Pro Rata Share of Taxes
      (defined in Section 5.1),
      Property Insurance (defined in Section
      6.1)
      and
      Liability Insurance (defined in Section
      6.2)
      (such
      Property Insurance and Liability Insurance are collectively referred to herein
      as “Landlord’s
      Insurance”),
      and
      Common Facilities Charges (defined in Section
      7.2).

    

    4.8 Security
      Deposit.
      Upon
      execution of this Lease by Tenant, Tenant shall deposit with Landlord the amount
      specified as a security deposit in the Summary (“Security
      Deposit”).
      The
      Security Deposit with interest shall
      be
      retained by Landlord and may be applied by Landlord, to the extent necessary,
      to
      pay and cover any loss, cost, damage or expense, including attorneys’ fees
      sustained by Landlord by reason of the failure of Tenant to comply with any
      provision, covenant or agreement of Tenant contained in this Lease. To the
      extent not necessary to cover such loss, cost, damage or expense, the Security
      Deposit, without any interest thereon, shall be returned to Tenant within sixty
      (60) days after the expiration of the
      Lease
      Term or as may be otherwise provided by law.
      The
      Security Deposit shall not be considered as an advance payment of rent or as
      a
      measure of the loss, cost, damage or expense which is or may be sustained by
      Landlord. If all or any portion of the Security Deposit is applied by Landlord
      to pay any such loss, cost damage or expense, Tenant shall, from time to time,
      promptly upon demand, deposit with Landlord such amounts as may be necessary
      to
      replenish the Security Deposit to its original amount

    

    4.9 General
      Provisions as to Monthly Deposits and Security Deposit.
      Landlord may commingle the Security Deposit or Monthly Deposits with Landlord’s
      own funds and use such funds as Landlord determines. In no event shall Landlord
      be required to hold such funds in escrow or trust for Tenant. Landlord shall
      not
      be obligated to pay interest to Tenant on account of the Monthly Deposits and
      Security Deposit. In the event of a transfer by Landlord of Landlord’s interest
      in the Demised Premises, Landlord or the property manager of Landlord may
      deliver the remaining balance of any Monthly Deposits and Security Deposit
      to
      the transferee of Landlord’s interest, advise Tenant of the name and address of
      such transferee and Landlord and such property manager shall thereupon be
      discharged from any further liability to Tenant with respect to such Monthly
      Deposits and Security Deposit. In the event of a Transfer (as defined in
Section
      8.16)
      by
      Tenant of Tenant’s interest in this Lease, Landlord shall be entitled to return
      the Monthly Deposits and Security Deposit to Tenant’s successor in interest and
      Landlord shall thereupon be discharged from any further liability with respect
      to the Monthly Deposits and Security Deposit.

    

    
      
        
        

      

      
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    4.10 Annual
      Adjustment.
      Following the end of each calendar year of the Lease Term, Landlord shall submit
      to Tenant a statement setting forth the exact amount of Tenant’s Pro Rata Share
      of Taxes, Landlord’s Insurance, and Common Facilities Charges for the previous
      calendar year (the “Statement”).
      The
      Statement shall also set forth the estimated the Monthly Deposits for the
      current calendar year. If Landlord determines that the actual amount of Tenant’s
      Pro Rata Share of Taxes, Landlord’s Insurance, and Common Facilities Charges,
      collectively for
      the
      previous calendar year exceeds the Monthly Deposits for such previous calendar
      year, Tenant shall pay to Landlord, within ten (10) days after receipt of the
      Statement, such deficiency in the amount reflected in the Statement. If Landlord
      determines that the Monthly Deposits exceeded the actual amount of Tenant’s Pro
      Rata Share of Taxes, Landlord’s Insurance and Common Facilities Charges,
      collectively for
      the
      previous calendar year, the excess amount shall, at Landlord’s option and,
      except as may be otherwise provided by law, either be paid to Tenant or credited
      against future Monthly Deposits or against Basic Rent, Additional Rent or other
      amounts payable by Tenant under this Lease. If Tenant disputes any Statement
      submitted by Landlord, including the estimated Monthly Deposits, Tenant shall
      give Landlord notice of such dispute within thirty (30) days
      after Landlord provides the Statement to Tenant. If Tenant does not give
      Landlord timely notice, Tenant waives its right to dispute that particular
      Statement and Tenant shall be deemed to have accepted the calculation of the
      Taxes, Landlord’s Insurance and Common Facilities Charges and Tenant’s Pro Rata
      Share thereof for such calendar year, and Tenant shall not be thereafter
      entitled to dispute or object to that particular Statement or the calculation
      thereof. If Tenant timely objects and provided that Tenant has paid the entire
      amount of Tenant’s Pro Rata Share of Taxes, Landlord’s Insurance and Common
      Facilities Charges and is not in default of its obligations under this Lease,
      then Tenant for a period of thirty (30) days after Tenant’s notice may engage
      its own certified public accountants (“Tenant’s
      Accountants”)
      to
      verify the accuracy of the Statement objected to by Tenant. During such thirty
      (30) period, Tenant’s Accountants shall be entitled to examine the books and
      records of Landlord pertaining to that particular Statement, which examination
      shall be conducted only during the regular business hours of Landlord at the
      office where Landlord maintains such books and records. Tenant’s Accountants
      shall enter into a confidentiality agreement with Landlord satisfactory to
      Landlord. Tenant shall deliver to Landlord copies of all audits, reports or
      other results from its examination within fifteen (15) days after receipt
      thereof by Tenant.
      All
      costs incurred by Tenant for Tenant’s Accountants shall be paid by Tenant;
      provided
      that if
      tenant has been overcharged by more then 5%, the cost of Tenant’s Accountants
      shall be paid by landlord. Notwithstanding any pending dispute, Tenant shall
      continue to pay Landlord the amount of the estimated Monthly Deposits until
      such
      amount has been determined to be incorrect. The amounts of Taxes, Landlord’s
      Insurance and Common Facilities Charges payable by Tenant for the calendar
      years
      in which the Lease Term commences and expires shall be subject to the provisions
      hereinafter contained in this Lease for proration of such amounts in such years.
      Prior to the dates on which payment is due for Taxes, Landlord’s Insurance and
      Common Facilities Charges, Landlord shall make payment of Taxes, Landlord’s
      Insurance and Common Facilities Charges, to the extent of funds from Monthly
      Deposits are available therefor and, upon request by Tenant, shall furnish
      Tenant with a copy of any receipt for such payments. Except for Landlord’s
      obligation to make payments out of funds available from Monthly Deposits, the
      making of Monthly Deposits by Tenant shall not limit or alter Tenant’s
      obligation to pay Taxes and to maintain insurance as elsewhere provided in
      this
      Lease. The obligations of the parties under this Section shall survive the
      termination or expiration of this Lease or the early termination of Tenant’s
      right to occupy the Demised Premises.

    

    
      
        
        

      

      
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    V. TAXES.

    

    5.1 Covenant
      to Pay Taxes.
      Tenant
      covenants and agrees to pay, as Additional Rent, Tenant’s Pro Rata Share of
      Taxes, as hereinafter defined, which accrue during or are attributable to the
      Lease Term, as it may be extended from time to time . “Taxes”
shall
      mean all taxes, assessments
      or other
      impositions, general or special, ordinary or extraordinary, of every kind or
      nature, which may be levied, assessed or imposed upon or with respect to the
      Property or the Project (as the case may be), or any part thereof, or upon
      any
      building, improvements or personal property at any time situated thereon. Taxes
      shall exclude income, capital stock, estate, inheritance franchise. Taxes shall
      not include any interest, fine or penalty for late payment. 

    

    5.2 Proration
      at Commencement and Expiration of Term.
      Taxes
      shall be prorated between Landlord and Tenant for the year in which the Lease
      Term commences and for the year in which the Lease Term expires as of,
      respectively, the commencement date of the Lease Term and the date of expiration
      of the Lease Term, except as hereinafter provided. Additionally, for the year
      in
      which the Lease Term expires, Tenant shall be liable without proration for
      the
      full amount of Taxes relating to any improvements, fixtures, equipment or
      personal property which Tenant is required to remove or in fact removes as
      of
      the expiration of the Lease Term. Proration of Taxes shall be made on the basis
      of actual Taxes. Tenant’s Pro Rata Share of Taxes for the years in which the
      Lease Term commences and expires shall be paid and deposited with the Landlord
      through Monthly Deposits as hereinabove provided.

    

    5.3 Special
      Assessments.
      If any
      Taxes are payable in installments over a period of years, Tenant shall be
      responsible only for installments for periods during the Lease Term with
      proration, as above provided, of any installment payable prior to the
      commencement date or after the expiration date of the Lease Term.

    

    5.4 New
      or Additional Taxes.
      Tenant’s obligation to pay Tenant’s Pro Rata Share of Taxes shall include any
      Taxes of a nature not presently in effect but which may hereafter be levied,
      assessed or imposed upon Landlord or upon the Property or the Project (as the
      case may be), if such tax shall be based upon or arise out of the ownership,
      use
      or operation of or the rents received therefrom, other than income taxes or
      estate taxes of Landlord. For the purposes of computing Tenant’s liability for
      such new type of tax or assessment, the Property shall be deemed the only
      property of Landlord.

    

    5.5 Landlord’s
      Sole Right to Contest Taxes.
      Landlord shall have the sole right to contest any Taxes. Landlord shall credit
      Tenant with Tenant’s Pro Rata Share of any abatement, reduction or recovery of
      any Taxes attributable to the Lease Term less Tenant’s Pro Rata Share of all
      costs and expenses incurred by Landlord, including attorney’s fees, in
      connection with such abatement, reduction or recovery. 

    

    VI. INSURANCE.

    

    6.1 Property
      Insurance.
      Landlord covenants and agrees to maintain all-risk property
      insurance (“Property
      Insurance”)
      for
      the Building, the shell and core of the Building and the Demised Premises
      at
      not less
      than 80% replacement value,
      from
      such company, with such deductible and on such terms and conditions as Landlord
      deems appropriate, in its reasonable
      discretion, from time to time including, without limitation, extended coverage
      and insurance for loss of rent, boilers, exterior plate glass and other exterior
      glass. Property Insurance obtained by Landlord need not name Tenant as an
      additional insured party and may, at Landlord’s option, name any Mortgagee (as
      herein defined) as an additional insured party as its interests may appear.
      Tenant covenants and agrees to pay, as Additional Rent, its Pro Rata Share
      of
      the cost of the Property Insurance obtained by Landlord for the Property or
      the
      Project (as the case may be) and the cost of any deductible under such Property
      Insurance.

    

    
      
        
        

      

      
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    6.2 Tenant’s
      Insurance.
      Tenant
      covenants and agrees to maintain throughout the Lease Term insurance coverage
      at
      least as broad as ISO Causes of Loss - Special Form Coverage against risk of
      direct physical loss or damage (commonly known as “all risk”) for the full
      replacement cost of Tenant’s equipment, fixtures, improvements, Changes (as
      hereinafter defined) and personal property in the Demised Premises. Tenant
      covenants and agrees to maintain throughout the Lease Term a commercial general
      liability policy, including protection against death, personal injury and
      property damage, issued by an insurance company qualified to do business in
      the
      state in which the Demised Premises are located and with (a) a single limit
      of
      not less than $1,000,000.00 per
      occurrence and (b) an annual aggregate limit of not less than
      $3,000,000.
      Such
      policy shall name Landlord, its property manager and the Mortgagee (as
      hereinafter defined) as additional insureds, be primary to any other similar
      insurance as such additional insureds, and provide that it may not be cancelled
      or modified without at least thirty (30) days prior notice to Landlord and
      Mortgagee. The minimum limits of such insurance do not limit the liability
      of
      Tenant hereunder. Prior to occupancy of the Demised Premises and prior to
      expiration or the then-current policy, Tenant shall deliver to Landlord
      certificates evidencing that insurance required under this Lease is in effect.
      Tenant covenants and agrees to obtain all other insurance, coverages, and
      endorsements customarily maintained by companies in the general business and
      use
      or reasonably requested by Landlord from time to time, including, without
      limitation,
      and
      workers compensation insurance. The commercial general liability policy obtained
      by Tenant shall not contain any retention or self-insurance provision, unless
      otherwise approved in writing by Landlord.

    

    6.3 Liability
      Insurance.
      Landlord covenants and agrees to maintain a commercial general liability policy
      (“Liability
      Insurance”)
      covering the Common Facilities of the Property or the Project (as the case
      may
      be) in amounts at least equal to that required of Tenant from
      such
      company, with such deductible and on such terms and conditions as Landlord
      deems
      appropriate, in its reasonable
      discretion, from time to time. Liability Insurance obtained by Landlord need
      not
      name Tenant as an additional insured party and may, at Landlord’s option, name
      the Mortgagee as an additional insured party. Tenant covenants and agrees to
      pay, as Additional Rent, its Pro Rata Share of the cost of the Liability
      Insurance obtained by Landlord and the cost of any deductible under the
      Liability Insurance.

    

    6.4 Waiver
      of Recovery.
      Except
      for Tenants indemnity obligations under Section
      8.23
      below,
      Landlord and Tenant waive all right of recovery against the other and its
      respective officers, partners, members, agents, representatives and employees
      for loss or damage to its real and personal property kept in or about the
      Building or the Project which is capable of being insured against under ISO
      Causes of Loss - Special Form Coverage, or for loss of business revenue or
      extra
      expense arising out of or related to the use and occupancy of the Demised
      Premises, to the extent there is valid and collectible insurance carried by
      such
      party or required to be carried by such party under this Lease. Each party
      shall, upon obtaining the property damage insurance required by this Lease,
      notify the insurance carrier that the foregoing waiver is contained in this
      Lease and
      to
      obtain an appropriate waiver of subrogation in the policies.

    

    6.5 Cooperation.
      Landlord
      and Tenant shall cooperate with each other in the collection of any insurance
      proceeds which may be payable in the event of any loss, including execution
      and
      delivery of any proof of loss or other action required to such
      recovery.

    

    
      
        
        

      

      
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    VII. OPERATING,
      MAINTENANCE AND REPAIR EXPENSES.

    

    7.1 Utility
      Charges.
      Tenant
      covenants and agrees to contract in Tenant’s own name and to pay, as Additional
      Rent, all charges for , gas, electricity, light, heat, power, telephone,
      telecommunication, internet, or other data transmission or utility services
      used, rendered or supplied to or for the Demised Premises. Gas and electric
      utilities will be separately metered to the Demised Premises. If any other
      utility charges are not separately metered or billed to the Demised Premises,
      then Tenant shall pay, as Additional Rent, Tenant’s Pro Rata Share thereof to
      Landlord, which amount shall be included in the Common Facilities
      Charges.

    

    7.2 Common
      Facilities Charges.
      Tenant
      covenants and agrees to pay, as Additional Rent, Tenant’s Pro Rata Share of
      Common Facilities Charges (as herein defined). The term “Common Facilities
      Charges” shall mean: all costs and expenses of operating, repairing,
      maintaining, upkeep
      of the
      Common Facilities, the Building, the Improvements, the Property and the Project
      including, without limitation, upkeep and replanting of grass, trees, shrubs
      and
      landscaping; removal of dirt, debris, obstructions and litter from the Parking
      Area, landscaped areas, sidewalks and driveways; 5 day janitorial and trash
      removal for the Premises and trash and garbage disposal for the Common
      Facilities and the tenants of the Property or Project; exterior window washing;
      repairs,
      resealing, re-striping, sweeping and snow and ice removal from the Parking
      Area,
      sidewalks, and driveways; removal of graffiti and repair of vandalism; heating,
      ventilation and air conditioning units, systems, equipment and facilities
      (“HVAC”)
      serving the Demised Premises, other premises leased to other tenants of the
      Property or the Project, the Building and the Common Facilities including,
      without limitation, replacement of filters, periodic inspections and any
      maintenance contracts (provided that Landlord shall not be obligated to carry
      any maintenance contracts); building signs; stairways; elevators; skylights;
      gas, electricity, light, heat, power and other utilities for the Common
      Facilities; extermination services; fire protection systems, monitoring and
      sprinkler systems; exterior painting; interior painting of the Common
      Facilities; replacement of interior light bulbs, light fixtures and ballasts
      in
      the Common Facilities; maintenance and repairs to roofs; repair, maintenance
      and
      replacement of damaged or broken exterior glass or windows; water and sewage
      disposal systems and charges; storm drainage systems and charges (including,
      without limitation, any detention, drainage or pond areas located within the
      Project); irrigation and landscaping sprinkler systems;
      dues
      and fees; supplies and the cost of any rental of equipment in implementing
      such
      services; wages, salaries, compensation, taxes, medical and other insurance,
      pension and retirement plans, and all other benefits and costs of personnel
      engaged in the operation, management, maintenance, service or security of the
      Property or Project including, without limitation, property managers and all
      other personnel for the daily supervision and performance thereof; charges
      for
      professional management and administration of the Building, not to exceed 3%
      of
      revenue, the
      Common Facilities, the Property and the Project; all deductibles for Landlord’s
      Insurance; all alterations, additions, improvements and other capital
      expenditures for the Property or Project (a) in order to conform to changes
      subsequent to the date of this Lease in any laws, ordinances, rules, regulations
      or orders of any applicable governmental authority, (b) which are intended
      as a cost or labor saving device or to effect other economies in the operation
      of the Property or Project to the extent such costs are reduced or
      (c) which are reasonably determined by Landlord to be necessary or
      appropriate for the operation of the Property or Project, subject to
      amortization of such costs
      at a
      market rate of interest over the useful life thereof, as reasonably
      determined by Landlord’s accountants Collectively “Permitted” Capital Pass
      Through Costs;
      and
      personal property taxes, licenses and permits. The Common Facilities Charges
      shall not be subject to amortization except as otherwise expressly herein
      required. Landlord may cause any or all of such services to be provided by
      independent contractor(s) and sub-contractor(s). The cost of personnel
      will
      be
      prorated, in Landlord’s reasonable
      discretion, if such personnel provides services for other properties in addition
      to the Property or Project.

    

    
      
        
        

      

      
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    Notwithstanding
      any contrary provision above "Common Facilities Charges" shall not include
      any
      of the following: (A) costs for which Landlord actually receives reimbursement
      by insurance, condemnation awards, warranties, or otherwise; (B) expenses
      incurred in leasing, including advertising expenses or leasing commissions
      paid
      to agents of Landlord or other brokers; (C) costs (other than Permitted Capital
      Pass Through Costs) of renovating or constructing space in the Project; (D)
      depreciation of the Building or Landlord's personal property at the Building;
      (E) interest on debt or amortization payments on any mortgage or deed of trust,
      rental under any prime lease or similar rental under any other superior lease
      or
      sublease; (F) any wages, salaries or other compensation paid to any employee
      not
      employed for or on behalf of the Building (to the extent wages, salaries, or
      other compensation are billed to the Building for any employee not employed
      by
      Landlord full-time on behalf of the Building, Landlord shall reasonably prorate
      such employee's time and bill to the Building only such time as the employee
      reasonably devotes to the Building or Building operations); (G) costs (other
      than Permitted Capital Pass Through Costs) of alterations and capital
      improvements which could not be expensed under generally accepted accounting
      principles, including without limitation resurfacing of any parking lots; (H)
      the costs incurred to remove or otherwise abate asbestos or asbestos-containing
      materials or any hazardous or toxic materials from the Building; (K) that
      portion of any payment made to an affiliate of Landlord that is in excess of
      the
      amount which would have been paid in the absence of such relationship; (L)
      the
      costs for repairs or maintenance that are reimbursed by others, including,
      without limitation, reimbursement made on warranty claims; (M) interest, fines,
      late payment charges or penalties payable due to the failure of Landlord to
      pay
      utilities or other charges in a timely manner; (N) costs or expenses of or
      any
      special services or equipment rendered or incurred for a tenant if the same
      are
      not rendered to Tenant; (O) expenses for correcting structural defects in the
      construction of the Building or latent defects in the Premises; (P) reserves
      for
      Common Facilities Charges; and (Q) political and charitable
      contributions;

    

    7.3 Tenant’s
      Maintenance Obligation.
      Tenant,
      at its sole cost and expense, shall maintain, repair, replace and keep the
      Demised Premises and all improvements, fixtures and personal property thereon
      in
      good, safe and sanitary condition, order and repair and in accordance with
      all
      applicable laws, ordinances, orders, rules and regulations of governmental
      authorities having jurisdiction. Tenant shall perform or contract for and
      promptly pay, as Additional Rent, for trash and garbage disposal (to the extent
      that Tenant’s trash and garbage disposal requirements exceed the usual
      requirements of tenants in the Building, as determined by Landlord), janitorial
      and cleaning services; security services, interior window washing services,
      interior painting, repair and replacement of all damage to doors,
      repair,
      maintenance and replacement of damaged or broken interior glass, plate glass
      and
      other breakable materials, and replacement of interior light bulbs, light
      fixtures and ballasts in
      the
      Demised Premises. Tenant shall operate, maintain, repair and replace the pipes
      and other equipment and facilities for water, sewage and other utility services
      in
      the
      Demised Premises from the point exclusively serving the Demised Premises, even
      if outside of the Demised Premises. All costs of maintenance and repairs by
      Tenant shall be considered Additional Rent hereunder. All maintenance and
      repairs to be performed by Tenant shall be done promptly, in a good and
      workmanlike fashion, and without diminishing the original quality of the Demised
      Premises or the Property.

    

    7.4 Landlord’s
      Maintenance Obligation.
      Landlord shall maintain and replace the exterior walls and structural elements
      of the Building and the Improvements, which shall be at Landlord’s sole cost
      except as expressly included in Common Facilities Charges. Landlord, at its
      sole
      cost and expense, shall be responsible for the replacement of the roofs of
      the
      Building. Landlord’s maintenance obligation under this Section shall be
      determined in Landlord’s sole reasonable
      discretion. For the purposes of this Section, all work and costs for the roofs
      of the Building shall be considered to be maintenance and repairs included
      in
      the Common Facilities Charges, except for the replacement of the entire roofing
      system of the Building by Landlord hereunder.

    

    
      
        
        

      

      
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    7.5 Building
      Services.

    

    (a) Landlord
      shall cause to be made available at general points of usage in the Demised
      Premises facilities for the supply of domestic hot (or tempered) and cold
      running water, and facilities for electric power for normal lighting and small
      office equipment. Tenant shall maintain the heating and air conditioning for
      the
      Demised Premises at such temperatures as are customary for similar quality
      office buildings in the area, as reasonably approved by Landlord, during not
      less than Normal Business Hours (as herein defined). Normal Business Hours
      shall
      mean the hours of 8:00 a.m. to 5:30 p.m., Monday through Friday, and 8:00 a.m.
      to 1:00 p.m. on Saturdays, except during any governmental or bank
      holiday.

    

    (b) Tenant
      shall be entitled to connect high wattage electrical equipment (including,
      without limitation, computer equipment and large copy machines) and install
      heat
      generating equipment or machinery in the Demised Premises provided that Tenant,
      at its sole cost, shall be responsible for all alterations or improvements
      to
      the HVAC, electric or other utility systems serving the Demised Premises and
      subject to Landlord’s prior written consent. Tenant shall not make any
      alterations or improvements to the Demised Premises or install any equipment
      or
      machinery which would affect other HVAC systems in the Building. Tenant shall
      pay, as Additional Rent, the cost of any modifications to the electrical system
      or heating and air conditioning system of the Building necessitated by such
      usage, the cost of separate metering if required by Landlord, and the cost
      of
      any additional electrical service provided to Tenant, unless billed directly
      to
      Tenant by the utility company.

    

    (c) Landlord
      shall not be liable for any damage, loss or expense incurred by Tenant by reason
      of any interruption, reduction (permanent or temporary) or failure of any
      utilities or services for the Demised Premises or the Building, unless caused
      by
      the gross negligence or international act of Landlord, its agents or
      employees.
      Landlord may, with notice to Tenant (except that no notice shall be required
      in
      the event of an emergency), cut off and discontinue any utilities and services
      when such discontinuance is necessary in order to make repairs or alterations
      or
      if otherwise required in connection with the fulfillment of Landlord’s
      obligations under this Lease. In no event shall Tenant be entitled to any
      abatement of rent as a result of the Demised Premises being rendered unusable
      for their intended purpose due to any such failure, interruption or reduction.
      No failure, interruption or reduction of utilities or services shall be
      construed as an eviction or disturbance of possession by Landlord and Tenant
      shall have no right to terminate this Lease as a result thereof.

    

    (d) Tenant
      shall promptly notify Landlord of any accidents or defects in the Building
      or
      the Project of which Tenant becomes aware, including defects in pipes, electric
      wiring and HVAC equipment, and of any condition which may cause injury or damage
      to the Building or Project or any person or property therein.

    

    VIII. OTHER
      COVENANTS OF TENANT.

    

    8.1 Limitation
      of Use by Tenant.
      Tenant
      covenants and agrees to use the Demised Premises only for the use or uses set
      forth as Permitted Uses by Tenant in the Summary and for no other purposes,
      except with the prior written consent of Landlord, to be exercised in Landlord’s
      sole and absolute discretion.

    

    8.2 Compliance
      with Laws.
      Tenant
      covenants and agrees that nothing shall be done or kept on the Demised Premises
      in violation of any law, ordinance, order, rule or regulation of any
      governmental authority having jurisdiction and that the Demised Premises shall
      be used, kept and maintained in compliance with any such law, ordinance, order,
      rule or regulation and with the certificate of occupancy issued for the Building
      and the Demised Premises.

    

    
      
        
        

      

      
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    8.3 Compliance
      with Insurance Requirements.
      Tenant
      covenants and agrees that nothing shall be done or kept on the Demised Premises
      which might impair or increase the cost of insurance maintained with respect
      to
      the Demised Premises or the Property, which might increase the insured risks
      or
      which might result in cancellation of any such insurance.

    

    8.4 No
      Waste or Impairment of Value.
      Tenant
      covenants and agrees that nothing shall be done or kept on the Demised Premises
      or the Property which might impair the value of the Demised Premises or the
      Property, or which would constitute waste.

    

    8.5 No
      Structural or Electrical Overloading.
      Tenant
      covenants and agrees that nothing shall be done or kept on the Demised Premises
      or the Building and that no improvements, changes, alterations, additions,
      maintenance or repairs shall be made to the Demised Premises which might impair
      the structural soundness of the Building, which might result in an overload
      of
      electrical lines serving the Building or which might interfere with electric
      or
      electronic equipment in the Building or on any adjacent or nearby property.
      In
      the event of violations hereof, Tenant covenants and agrees to immediately
      remedy the violation at Tenant’s expense and in compliance with all requirements
      of governmental authorities and insurance underwriters.

    

    8.6 No
      Nuisance, Noxious or Offensive Activity.
      Tenant
      covenants and agrees that no noxious or offensive activity shall be carried
      on
      upon the Demised Premises or the Property nor shall anything be done or kept
      on
      the Demised Premises or the Property which may be or become a public or private
      nuisance or which may cause embarrassment, disturbance, or annoyance to others
      in the Building or on adjacent or nearby property.

    

    8.7 No
      Annoying Lights, Sounds or Odors.
      Tenant
      covenants and agrees that no light shall be emitted from the Demised Premises
      which is unreasonably bright or causes unreasonable glare, no sound shall be
      emitted from the Demised Premises which is unreasonably loud or annoying; and
      no
      odor shall be emitted from the Demised Premises which is or might be noxious
      or
      offensive to others in the Building or on adjacent or nearby
      property.

    

    8.8 No
      Unsightliness.
      Tenant
      covenants and agrees that no unsightliness shall be permitted on the Demised
      Premises or the Property which is visible from any adjacent or nearby property.
      Without limiting the generality of the foregoing, all unsightly conditions,
      equipment, objects and conditions shall be kept enclosed within the Demised
      Premises; no refuse, scrap, debris, garbage, trash, bulk materials or waste
      shall be kept, stored or allowed to accumulate on the Demised Premises or the
      Property except as may be enclosed within the Demised Premises; all pipes,
      wires, poles, antennas and other facilities for utilities or the transmission
      or
      reception of audio or visual signals or electricity shall be kept and maintained
      underground or enclosed within the Demised Premises or appropriately screened
      from view; and no temporary structure shall be placed or permitted on the
      Demised Premises or the Property without the prior written consent of Landlord,
      in its sole and subjective discretion.

    

    8.9 No
      Animals.
      Tenant
      covenants and agrees that no animals shall be permitted or kept on the Demised
      Premises or the Property, except as may be required for any person with a
      disability.

    

    8.10 Restriction
      on Signs and Exterior Lighting.
      Tenant
      covenants and agrees that no signs or advertising devices of any nature shall
      be
      erected or maintained by Tenant on the Demised Premises or the Property and
      no
      exterior lighting shall be permitted on the Demised Premises or the Property,
      except for signs complying with the signage specifications attached hereto
      as
      Exhibit D and approved by Landlord in writing, in its
      reasonable discretion. Landlord shall permit Tenant the right to the use of
      50%
      of the monument sign.

    

    
      
        
        

      

      
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    8.11 No
      Violation of Covenants.
      Tenant
      covenants and agrees not to commit, suffer or permit any violation of any
      covenant, condition or restriction affecting the Demised Premises or the
      Property.

    

    8.12 Restriction
      on Changes and Alterations.
      Tenant
      covenants and agrees not to improve, change, alter, add to, remove or demolish
      any improvements on the Demised Premises (“Changes”),
      without the prior written consent of Landlord which consent shall not be
      unreasonably withheld, and unless Tenant complies with all conditions which
      may
      be imposed by Landlord, in its reasonable
      discretion, in connection with such consent, provided that Landlord’s consent
      shall not be required for interior, non-structural alterations which do not
      affect building operating systems. Tenant agrees to pay, as Additional
      Rent, to Landlord the reasonable costs and expenses of Landlord for
      architectural, engineering or other consultants which may be reasonably incurred
      by Landlord in determining whether to approve any such Changes. Landlord’s
      consent to any Changes and the conditions imposed in connection therewith shall
      be subject to all requirements and restrictions of any Mortgagee. If such
      consent is given, no such Changes shall be permitted unless (a) Tenant
      shall have procured and paid for all necessary permits and authorizations from
      any governmental authorities having jurisdiction; (b) such Changes shall
      not reduce the value of the Property; (c) such Changes are located wholly
      within the Demised Premises, shall not adversely affect the structural integrity
      of the Building or the operation of the HVAC, plumbing, electrical, water,
      or
      sewer systems servicing the Building or the Property; (d) such Changes
      shall not affect or impair existing insurance on the Property; and
      (e) Tenant, at Tenant’s sole cost and expense, shall maintain or cause to
      be maintained workmen’s compensation insurance covering all persons employed in
      connection with the work and obtains liability insurance covering any loss
      or
      damage to persons or property arising in connection with any such Changes and
      such other insurance or bonds as Landlord may reasonably require. Tenant
      covenants and agrees that any Changes approved by Landlord shall be completed
      with due diligence and in a good and workmanlike fashion and in compliance
      with
      all conditions imposed by Landlord and all applicable permits, authorizations,
      laws, ordinances, orders, rules and regulations of governmental authorities
      having jurisdiction and that the costs and expenses with respect to such Change
      shall be paid promptly when due and that the Change shall be accomplished free
      of mechanics’ and materialmen’s liens. Tenant covenants and agrees that all
      Changes shall become the property of the Landlord at the expiration or earlier
      termination of the Lease Term or the early termination of Tenant’s right to
      occupy the Demised Premises or, if Landlord so requests when Landlord consents
      to their installation
      Tenant
      shall, at or prior to expiration of the Lease Term and at its sole cost and
      expense, remove such Changes and restore the Demised Premises to their condition
      prior to such Changes.

    

    8.13 No
      Mechanic’s Liens.
      Tenant
      covenants and agrees not to permit or suffer, and to cause to be removed and
      released, any mechanic’s, materialmen’s or other lien on account of supplies,
      machinery, tools, equipment, labor or material furnished or used in connection
      with the construction, alteration, improvement, addition to or repair of the
      Demised Premises by, through or under Tenant. At least twenty (20) days prior
      to
      any Changes, Tenant shall provide written notice to Landlord of the date of
      commencement of any Changes. Landlord shall have the right, at any time and
      from
      time to time, to post and maintain on the Demised Premises and Building such
      notices as Landlord deems necessary to protect the Demised Premises against
      such
      liens. Tenant shall have the right to contest, in good faith and with reasonable
      diligence, the validity of any such lien or claimed lien, provided that Tenant
      shall give to Landlord such security as may be reasonably requested by Landlord
      to insure the payment of any amounts claimed, including interest and costs,
      and
      to prevent any sale, foreclosure or forfeiture of any interest in the Property
      on account of any such lien, including, without limitation, bonding, escrow
      or
      endorsement of the title insurance policy of Landlord and any Mortgagee. If
      Tenant so contests, then on final determination of the lien or claim for lien,
      Tenant shall immediately pay any judgment rendered, with interest and costs,
      and
      shall cause the lien to be released and any judgment satisfied.

    

    
      
        
        

      

      
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    8.14 No
      Other Encumbrances.
      Tenant
      covenants and agrees not to obtain any financing secured by Tenant’s interest in
      the Demised Premises and not to encumber the Demised Premises or Landlord’s or
      Tenant’s interest therein, without the prior written consent of Landlord, in its
      sole and subjective discretion, and to keep the Demised Premises free from
      all
      liens and encumbrances except liens and encumbrances existing upon the date
      of
      commencement of the Lease Term or liens and encumbrances created by
      Landlord.

    

    8.15 Subordination
      to Landlord Mortgages.
      Tenant
      covenants and agrees that this Lease and Tenant’s interest in the Demised
      Premises shall be junior and subordinate to any mortgage or deed of trust
      (“Mortgage”) now or hereafter encumbering the Property. Tenant requires that
Landlord
      obtain in writing from
      any
      mortgagee or holder of a Mortgage now or hereafter encumbering the Property
      (“Mortgagee”) to covenant not to disturb Tenant and this Lease, Landlord shall
      promptly
      make
      such request to any mortgagee or within 30 days a holder
      and Tenant shall pay, as Additional Rent, all costs, if any charged
      by any Mortgagee for such non-disturbance covenant. In the event of a
      foreclosure of any Mortgage, Tenant shall attorn to the party acquiring title
      to
      the Property as the result of such foreclosure. No act or further agreement
      by
      Tenant shall be necessary to establish the subordination of this Lease to any
      such Mortgage, which subordination is self-executing, but Tenant covenants
      and
      agrees, upon request of Landlord, to execute within ten (10) days of written
      request such documents as may be necessary or appropriate to confirm and
      establish this Lease as subordinate to any Mortgage in accordance with the
      foregoing provisions, so long as Tenant obtains the required covenant of
      non-disturbance from any such lender. Alternatively,
      Tenant covenants and agrees that, at the option of any Mortgagee, Tenant shall
      execute documents as may be necessary to establish this Lease and Tenant’s
      interest in the Demised Premises as superior to any such Mortgage within ten
      (10) days after Tenant’s receipt thereof. If Tenant fails to execute any
      documents required to be executed by Tenant under the provisions hereof, such
      failure shall be deemed to be an immediate material Default by Tenant, and
      Tenant shall be deemed to have agreed to and be bound by the covenants, terms
      and conditions provided in such documents. If any Mortgagee or purchaser at
      foreclosure thereof, succeeds to the interest of Landlord in the Land or the
      Building, such person shall not be (i) liable for any act or omission of
      Landlord under this Lease; (ii) liable for the performance of Landlord’s
      covenants hereunder which arise prior to such person succeeding to the interest
      of Landlord hereunder; (iii) bound by the payment of any rent which Tenant
      may have paid more than one month in advance; (iv) liable for any security
      deposit which was not delivered to such person; or (v) bound by any
      modifications to this Lease to which such holder has not consented in
      writing.

    

    8.16 No
      Assignment or Subletting.

    

    (a) Tenant
      covenants and agrees not to make or permit a Transfer by Tenant, as hereinafter
      defined, without Landlord’s prior written consent, which consent shall not be
      unreasonably withheld. A “Transfer”
by
      Tenant shall include an assignment of this Lease, a sublease of all or any
      part
      of the Demised Premises or any assignment, sublease, transfer, mortgage, pledge
      or encumbrance of all or any part of the Demised Premises or of Tenant’s
      interest under this Lease or in the Demised Premises, by operation of law or
      otherwise, or the use or occupancy of all or any part of the Demised Premises
      by
      anyone other than Tenant. Any such Transfer by Tenant without Landlord’s written
      consent shall be void and shall constitute a Default by Tenant under this Lease.
      If Landlord consents to any Transfer by Tenant, Tenant shall not be relieved
      of
      its obligations under this Lease and Tenant shall remain liable, jointly and
      severally, and as a principal, not as a guarantor or surety, under this Lease,
      to the same extent as though no Transfer by Tenant had been made, unless
      specifically provided to the contrary in Landlord’s prior written consent. The
      acceptance of rent by Landlord from any person other than Tenant shall not
      be
      deemed to be a waiver by Landlord of the provisions of this Section or of any
      other provision of this Lease and any consent by Landlord to a Transfer by
      Tenant shall not be deemed a consent to any subsequent Transfer by Tenant.
      Notwithstanding anything to the contrary contained in this Section
      8.16,
      Tenant
      shall be permitted to assign the Lease or sublease the Demised Premises to
      any
      Affiliate without Landlord’s prior consent, and not subject
      to the remaining conditions of this Section
      8.16.
      An
“Affiliate”
means
      any entity in which Tenant owns
      a 51% or
      greater ownership interest, or which owns a controlling interest in Tenant,
      or
      is a successor in interest to Tenant by merger or otherwise, provided its credit
      is equal to or greater than Tenant's credit as of date of such assignment,
      subletting or change in ownership structure.

    

    
      
        
        

      

      
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    (b) If
      Tenant
      requests Landlord’s consent to a Transfer, Tenant shall submit to Landlord in
      writing the name of the proposed transferee, the effective date of the Transfer,
      the terms of the proposed Transfer, a copy of the proposed form of sublease
      or
      assignment, and such information as to the business, reputation, responsibility,
      and financial capacity of the transferee as Landlord shall reasonably require
      to
      evaluate the request. It shall be reasonable for the Landlord to withhold its
      consent to any Transfer where: (i) in the case of a sublease, the subtenant
      has not acknowledged that the provisions of this Lease control over any
      inconsistent provision in the sublease; or (ii) in Landlord’s opinion, the
      proposed transferee does not have the financial capacity or ability to perform
      its obligations under the assignment or sublease; or (iii) the intended use
      by the transferee would damage the goodwill or reputation of the Building;
      or
      (iv) the intended use is not compatible with other uses of the Building,
      conflicts with another tenant’s right to exclusive use, or is not permitted by
      applicable law or covenant. The foregoing criteria are not exhaustive, and
      Landlord may withhold consent to a Transfer on any other reasonable grounds.
      Tenant shall reimburse Landlord for all of Landlord’s costs incurred in
      connection with any request for consent to a Transfer, including, without
      limitation, a reasonable sum for attorneys’ fees.

    

    (c) Alternatively,
      at the request of Landlord, Tenant shall pay over to Landlord, as Additional
      Rent, 50% of all
      sums
      in excess of Tenant costs in effecting such assignment or sublease,
      received by Tenant in excess of the rent payable by Tenant hereunder which
      is
      attributable on an equally allocable Floor Area basis, to any subletting of
      all
      or any portion of the Demised Premises so subleased, and all consideration
      received on account of or attributable to any assignment of this
      Lease.

    

    (d) If
      Landlord consents to a Transfer by Tenant, then any option to renew this Lease,
      right to extend the Lease Term, or option or right of refusal to expand the
      Demised Premises shall automatically terminate.

    

    (e) Tenant
      covenants and agrees to pay, as Additional Rent to Landlord, the amount of
      $750.00 as an administrative charge to compensate Landlord for processing such
      request and any other reasonable costs and expenses incurred by Landlord in
      connection with such request (including, without limitation, reasonable
      attorneys’ fees), whether or not the consent of Landlord is given to the
      Transfer requested by Tenant. Tenant shall pay such $750.00 administrative
      charge and an estimated amount of the other costs and expenses, as determined
      by
      Landlord, which shall be due and payable to Landlord at the time that Tenant
      submits such request for consent to the Transfer to Landlord, provided, however,
      that upon request from Tenant, Landlord shall provide Tenant with the estimated
      amount of such other costs and expenses. When the actual amount of such costs
      and expenses are known by Landlord, then if such estimated amount paid by Tenant
      is greater than the actual amount of such costs and expenses, Landlord shall
      refund any such excess to Tenant. If such estimated amount paid by Tenant is
      less than the actual amount of such costs and expenses, Tenant shall pay to
      Landlord, within ten (10) days after demand by Landlord, any such additional
      actual costs and expenses. The payment of such administrative charge and other
      costs and expenses by Tenant shall be a condition precedent to the effectiveness
      of any consent by Landlord to such Transfer.

    

    
      
        
        

      

      
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    (f) As
      a
      condition to Landlord’s consent to a Transfer by Tenant, any assignee shall
      expressly assume all the obligations of Tenant under this Lease in a written
      instrument reasonably satisfactory to Landlord and furnished to Landlord not
      later than fifteen (15) days prior to the effective date of such assignment,
      and
      any subtenant shall covenant to Landlord to comply with all obligations of
      Tenant under this Lease as applied to the portion of the Demised Premises so
      sublet and to attorn to Landlord, at Landlord’s written election, in the event
      of any termination of this Lease prior to the expiration date of the Lease
      Term,
      all of which shall be in a written instrument satisfactory to Landlord and
      furnished to Landlord not later than fifteen (15) days prior to the effective
      date of such sublease.

    

    8.17 Annual
      Financial Statements.
      To the
      extent allowed by banking law Tenant
      covenants and agrees to furnish to Landlord, within fifteen (15) days after
      written request thereof from Landlord, copies of financial statements of Tenant
      prepared by, and if requested by Landlord, audited by a certified public
      accountant, and agrees that Landlord may deliver any such financial statements
      to any existing or prospective Mortgagee or purchaser of the Property. The
      financial statements shall include a balance sheet as of the end of, and a
      statement of profit and loss for, the preceding fiscal year of Tenant and,
      if
      regularly prepared by Tenant, a statement of sources and use of funds for the
      preceding fiscal year of Tenant.

    

    8.18 Payment
      of Income and Other Taxes.
      Tenant
      covenants and agrees to pay, as Additional Rent, promptly when due, all personal
      property taxes on personal property of Tenant on the Demised Premises and all
      federal, state and local income taxes, sales taxes, use taxes, Social Security
      taxes, unemployment taxes and taxes withheld from wages or salaries paid to
      Tenant’s employees, the nonpayment of which might give rise to a lien on the
      Demised Premises or Tenant’s interest therein, and to furnish, if requested by
      Landlord, evidence of such payments.

    

    8.19 Estoppel
      Certificates.
      Each of
      Landlord and Tenant covenants and agrees to execute, acknowledge and deliver
      to
      the other, upon the requesting party's written request, a written statement
      certifying that this Lease is unmodified (or, if modified, stating the
      modifications) and in full force and effect; stating the dates to which Basic
      Rent and Additional Rent have been paid; stating the amount of the Security
      Deposit held by Landlord; stating the amount of the Monthly Deposits held by
      Landlord for the then tax and insurance year; stating that, to requested party's
      knowledge, there have been no defaults by Landlord or Tenant and no event which
      with the giving of notice or the passage of time, or both, would constitute
      such
      a default (or, if there have been defaults, setting forth the nature thereof);
      and stating such other matters concerning this Lease as Landlord may reasonably
      request. Tenant agrees that such statement may be delivered to and relied upon
      by any existing or prospective Mortgagee or purchaser of the Property. Tenant
      agrees that a failure to deliver such a statement within ten (10) days after
      written request from Landlord shall (a) constitute an immediate material Default
      by Tenant and (b) be conclusive upon Tenant that this Lease is in full force
      and
      effect without modification except as may be represented by Landlord; that
      there
      are no uncured defaults by Landlord or Tenant under this Lease except as may
      be
      represented by Landlord; and that any representation by Landlord with respect
      to
      Basic Rent, Additional Rent, the Security Deposit, the Monthly Deposits and
      any
      other permitted matter are true.

    

    8.20 Landlord
      Right to Inspect and Show Premises and to Install “For
      Sale”
      Signs.
      Tenant
      covenants and agrees that Landlord and the authorized representatives of
      Landlord shall have the right
      to enter
      the Demised Premises upon reasonable notice and in the company of an employee
      of
      Tenant at
      any
      reasonable time during ordinary business hours (or at any time in the event
      of
      an emergency) for the purposes of inspecting, repairing or maintaining the
      same
      or performing any obligations of Tenant which Tenant has failed to perform
      hereunder after written notice and opportunity to cure or
      for
      the purposes of showing the Demised Premises to any existing or prospective
      Mortgagee, purchaser or tenant
      of the
      Property or the Demised Premises. During the last 4 months of the
      term.
      Tenant
      covenants and agrees that Landlord may at any time and from time to time place
      on the Property or the Demised Premises a sign advertising the Property or
      the
      Demised Premises for sale or for lease. Landlord acknowledges the security
      needs
      and confidentiality of bank records and will respect Tenants
      requirements.

    

    
      
        
        

      

      
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    8.21 Landlord
      Title to Fixtures, Improvements and Equipment.
      Tenant
      covenants and agrees that all fixtures and improvements on the Demised Premises
      and all equipment and personal property relating to the use and operation of
      the
      Demised Premises (as distinguished from operations incident to the business
      of
      Tenant) including trade fixtures and personal property,
      including all plumbing, heating, lighting, electrical and air conditioning
      fixtures and equipment, whether or not attached to or affixed to the Demised
      Premises, and whether now or hereafter located upon the Demised Premises, shall
      be and remain the property of the Landlord upon expiration of the Lease Term
      or
      upon the early termination of Tenant’s right to occupy the Demised
      Premises.

    

    8.22 Removal
      of Tenant’s Equipment.
      Tenant
      covenants and agrees to remove, at or prior to the expiration or earlier
      termination of the Lease Term or at the early termination of Tenant’s right to
      occupy the Demised Premises, all of Tenant’s Equipment, as hereinafter defined.
“Tenant’s Equipment” shall mean all equipment, apparatus, machinery, signs,
      furniture, furnishings and personal property used in the operation of the
      business of Tenant (as distinguished from the use and operation of the Demised
      Premises). If such removal shall injure or damage the Demised Premises Tenant
      covenants and agrees, at its sole cost and expense, at or prior to the
      expiration of the Lease Term or at the early termination of Tenant’s right to
      occupy the Demised Premises, to repair such injury and damage in good and
      workmanlike fashion and to place the Demised Premises in the same condition
      as
      the Demised Premises would have been in if such Tenant’s Equipment had not been
      installed. If Tenant fails to remove any of Tenant’s Equipment by the expiration
      of the Lease Term or at the early termination of Tenant’s right to occupy the
      Demised Premises, Landlord may, at its option, keep and retain any such Tenant’s
      Equipment or dispose of the same and retain any proceeds therefrom, and Landlord
      shall be entitled to recover from Tenant, any costs or expenses of Landlord
      in
      removing the same and in restoring the Demised Premises, in excess of the actual
      proceeds, if any, received by Landlord from disposition thereof. Tenant releases
      and discharges Landlord from any and all claims and liabilities of any kind
      arising out of Landlord’s disposition of Tenant’s Equipment.

    

    8.23 Tenant
      Indemnification of Landlord.
      Tenant
      covenants and agrees to protect, indemnify, defend and save Landlord and
      Landlord’s partners, members, managers, employees, agents, owner
      representatives, property managers, beneficiaries, affiliates, successors,
      assigns (“Related
      Parties”)
      harmless for, from and against all liability, obligations, claims, damages,
      penalties, causes of action, costs and expenses, including attorneys’ fees,
      imposed upon, incurred by or asserted against Landlord or its Related Parties
      by
      reason of (a) any accident, injury to or death of any person or loss of or
      damage to any property occurring on or about the Demised Premises; (b) any
      act or omission of Tenant or Tenant’s agents, officers, employees contractors,
      representatives or any other person entering upon the Demised Premises under
      express or implied invitation of Tenant (collectively, “Tenant’s
      Agents”);
      (c) any use which may be made of, or condition existing upon, the Demised
      Premises; by Tenant any
      improvements, fixtures or equipment upon the Demised Premises, including without
      limitation any improvements to the Demised Premises made by Tenant or Tenant’s
      Agents during any period prior to the Commencement Date; (e) any failure on
      the part of Tenant or Tenant’s Agents to perform or comply with any of the
      provisions, covenants or agreements of Tenant contained in this Lease;
      (f) any violation of any 

    law,
      ordinance, order, rule or regulation of governmental authorities having
      jurisdiction over Tenant or Tenant’s Agents; and (g) any repairs,
      maintenance or Changes to the Demised Premises by, through or under Tenant.
      Tenant further covenants and agrees that, in case any action, suit or proceeding
      is brought against Landlord or its Related Parties by reason of any of the
      foregoing, Tenant shall, at Tenant’s sole cost and expense, defend Landlord in
      any such action, suit or proceeding with counsel reasonably acceptable to
      Landlord.

    

    
      
        
        

      

      
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    8.24 Landlord
      Indemnification of Tenant.
      Landlord covenants and agrees to protect, indemnify, defend and save Tenant
      harmless from and against all liability, obligations, claims, damages,
      penalties, causes of action, costs and expenses, including attorneys’ fees,
      imposed upon, incurred by, or asserted against Tenant by reason of
      (a) Landlord’s gross negligence or willful misconduct; or (b) a
      default by Landlord under this Lease, after the lapse of all applicable notice
      grace and cure periods. Tenant waives and releases any claims Tenant may have
      against Landlord or its Related Parties for loss, damage or injury to person
      or
      property sustained by Tenant or Tenant’s Agents resulting from any cause
      whatsoever other than gross negligence or willful misconduct of Landlord.
      Notwithstanding anything to the contrary, the indemnification of Tenant by
      Landlord provided in this Section
      8.24
      shall be
      subject to all waivers, limitations and restrictions otherwise provided in
      this
      Lease. Notwithstanding anything to the contrary, Landlord and its Related
      Parties shall not be personally liable with respect to any of the terms,
      covenants and conditions of this Lease, and Tenant shall look solely to the
      equity of Landlord in the Property in the event of any default or liability
      of
      Landlord under this Lease, such exculpation of liability to be absolute and
      without any exception whatsoever.

    

    8.25 Release
      upon Transfer by Landlord.
      In the
      event of a transfer by Landlord of the Property or of Landlord’s interest as
      Landlord under this Lease, Landlord’s successor or assign shall take subject to
      and be bound by this Lease and in such event, Tenant covenants and agrees that
      Landlord and its Related Parties shall be released from all obligations of
      Landlord under this Lease, except obligations which arose and matured prior
      to
      such transfer by Landlord; that Tenant shall thereafter look solely to
      Landlord’s successor or assign for satisfaction of the obligations of Landlord
      under this Lease; and that, upon demand by Landlord or Landlord’s successor or
      assign, Tenant shall attorn to such successor or assign.

    

    8.26 Rules
      and Regulations. Tenant
      shall observe and comply with rules and regulations attached hereto as
Exhibit “C”,
      which
      may be amended from time to time by Landlord by providing written notice thereof
      to Tenant. Landlord shall not be responsible to Tenant for the failure of any
      other tenant of the Building to observe or comply with any of the rules or
      regulations.

    

    8.27 Tenant’s
      Representations, Warranties and Covenants Concerning Use of Hazardous
      Substances.

    

    (a) Tenant
      shall, at its sole cost and expense, keep and maintain the premises
      in good
      condition, ordinary wear and tear and damage by fire or other casualty excepted
      and promptly respond to and clean up any release or threatened release by tenant
      of
      any
      Hazardous Substance (as hereinafter defined) into the drainage systems, soil,
      surface water, groundwater, or atmosphere, in a safe manner, in strict
      accordance with Applicable Law (as hereinafter defined), and as authorized
      or
      approved by all federal, state, and/or local agencies having authority to
      regulate the permitting, handling, and cleanup of Hazardous Substances;
      provided, however, Tenant’s obligations under this sentence shall not include
      any Hazardous Substances which Tenant proves existed on the Property on the
      commencement of the Lease Term or were not caused
      by
      any act or omission of Tenant or Tenant’s Agents. Tenant and Tenant’s Agents
      shall not use, store, generate, treat, transport, or dispose of any Hazardous
      Substance at the Property without first obtaining Landlord’s written approval,
      which consent shall be in Landlord’s sole and subjective discretion. Tenant
      shall notify Landlord and seek such approval in writing at least thirty (30)
      days
      prior to bringing any Hazardous Substance onto the Property. Landlord may
      withdraw approval of any such Hazardous Substance at any time, for reasonable
      cause related to the threat of site contamination, or damage or injury to
      persons, property or resources on or near the Property. Upon withdrawal of
      such
      approval, Tenant shall immediately remove the Hazardous Substance from the
      site.
      Landlord’s failure to approve the use of a Hazardous Substance under this
      Section shall not limit or affect Tenant’s obligations under this Lease,
      including Tenant’s duty to remedy or remove releases or threatened releases; to
      comply with Applicable Law relating to the use, storage, generation, treatment,
      transportation, and/or disposal of any such Hazardous Substances; or to
      indemnify Landlord against any harm or damage caused thereby.

    

    
      
        
        

      

      
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    (b) For
      any
      month in which any Hazardous Substances have been used, generated, treated,
      stored, transported or otherwise been present on or in the Property pursuant
      to
      the provisions of this Section, Tenant shall provide Landlord with a written
      report listing the Hazardous Substances which were present on the Property;
      all
      releases of Hazardous Substances that occurred or were discovered on the Demised
      Premises; all compliance activities related to such Hazardous Substances,
      including all contacts with government agencies or private parties of any kind
      concerning Hazardous Substances; and all manifests, business plans, consent
      agreements or other documents relating to Hazardous Substances executed or
      requested during that time period. The report shall include copies of all
      documents and correspondence related to such activities and written reports
      of
      all oral contacts relating thereto. Tenant shall permit Landlord and its Related
      Parties to enter into and upon the Demised Premises, without notice,
      at all
      reasonable times
      (or
      at any time in the event of an emergency) for the purpose of inspecting the
      Demised Premises and all activities thereon, including activities involving
      Hazardous Substances, or for purposes of maintaining any buildings on the
      Demised Premises. Such right of entry and inspection shall not constitute
      managerial or operational control by Landlord over any activities or operations
      conducted on the Property by Tenant
      and in
      making any entry Landlord will respect Tenant's confidentiality and security
      concerns in accordance with Section 8.20 above.

    

    (c) Tenant
      hereby indemnifies, defends and holds harmless Landlord from and against any
      suits, actions, legal or administrative proceedings, demands, claims,
      liabilities, fines, penalties, losses, injuries, damages, expenses or costs,
      including interest and attorneys’ fees, incurred by, claimed or assessed against
      Landlord or its Related Parties (i) under any laws, rules, regulations
      including, without limitation, Applicable Laws, (ii) in any way connected
      with any injury to any person or damage to any property, or (iii) any loss
      to Landlord or its Related Parties occasioned in any way by Hazardous Substances
      on the Property which are the responsibility of Tenant
      provided
      however, Tenant’s obligations under this sentence shall not include any
      Hazardous Substances which Tenant proves existed on the Property on the
      commencement of the Lease Term or were not caused
      by
      any act or omission of Tenant or Tenant’s Agents. This indemnity specifically
      includes the direct obligation of Tenant to perform any remedial or other
      activities required, ordered, recommended or requested by any agency, government
      official or third party, or otherwise necessary to avoid or minimize injury
      or
      liability to any person, or to prevent the spread of pollution, however it
      came
      to be located thereon (hereinafter, the “Remedial
      Work”).
      Tenant shall perform all Remedial Work in its own name in accordance with
      Applicable Laws. Without waiving its rights hereunder, Landlord may, at its
      option, perform the Remedial Work and thereafter seek reimbursement for the
      costs thereof. Tenant shall permit Landlord access to the Property to perform
      any Remedial Work. Whenever Landlord has incurred costs described in this
      Section, Tenant shall, within ten (10) days of receipt of notice thereof,
      reimburse Landlord for all such expenses together with interest from the date
      of
      expenditure at the rate provided in Section
      12.9
      hereof.

    

    (d) Without
      limiting
      its obligations under any other Section of this Lease, Tenant shall be solely
      and completely responsible for responding to and complying with any
      administrative notice, order, request or demand, or any third party claim or
      demand relating to potential or actual contamination on the Property and
      resulting from the acts of Tenant and Tenant’s Agents. The responsibility
      conferred under this Section includes but is not limited to responding to such
      orders on behalf of Landlord and defending against any assertion of Landlord’s
      financial responsibility or individual duty to perform under such orders. Tenant
      assumes all liabilities or responsibilities which are assessed against Landlord
      in any action described under this Section. Tenant hereby waives, releases
      and
      discharges forever Landlord from all present and future claims, demands, suits,
      legal and administrative proceedings and from all liability for damages, losses,
      costs, liabilities, fees and expenses, present and future, arising out of or
      in
      any way connected with Landlord’s use, maintenance, ownership or operation of
      the Property, any condition of environmental contamination of the Property,
      or
      the existence of Hazardous Substances in any state on the Property, however
      they
      came to be placed there.

    

    
      
        
        

      

      
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    (e) Landlord
      consents to Tenant’s use of ordinary office products in customary quantities
      within the Demised Premises, in accordance with Applicable Laws and the terms
      and conditions of this Lease.

    

    (f) “Hazardous
      Substance(s)”
shall
      mean any hazardous substance, pollutant, contaminant, waste, by-product or
      constituent regulated under any of the Applicable Laws (as hereinafter defined);
      oil and petroleum products, natural gas, natural gas liquids, liquified natural
      gas, and synthetic gas usable for fuel; pesticides regulated under any of the
      Applicable Laws; asbestos and asbestos containing materials, PCBs and other
      substances regulated under any of the Applicable Laws; raw materials, building
      components and the product of any manufacturing or other activities on the
      Property; source material, special nuclear material, by-product material and
      any
      other radioactive materials or radioactive wastes, however produced, regulated
      under the Atomic Energy Act or the Nuclear Waste Policy Act; chemicals subject
      to the OSHA Hazard Communications Standard, 29 C.F.R. § 19.10.1200
et seq.;
      industrial process and pollution control wastes, whether or not defined as
      hazardous within the meaning of any Applicable Law; and any substance which
      at
      any time shall be listed as “hazardous” or “toxic” or regulated under any of the
      Applicable Laws.

    

    (g) “Applicable
      Law(s)”
shall
      include, but shall not be limited to, all federal, state, and local statutes,
      ordinances, regulations and rules regulating the environmental quality, health,
      safety, contamination and cleanup including, without limitation, the Clean
      Air
      Act, as amended, 42 U.S.C. § 7401 et seq.,
      the
      Federal Water Pollution Control Act, as amended, 33 U.S.C. § 1251
et seq.;
      the
      Water Quality Act of 1987, as amended; the Federal Insecticide, Fungicide and
      Rodenticide Act, as amended, 7 U.S.C. § 136 et seq.;
      the
      Marine Protection, Research and Sanctuaries Act, as amended, 33 U.S.C.
§ 1401 et seq.;
      the
      National Environmental Policy Act, as amended, 42 U.S.C. § 4321
et seq.;
      the
      Noise Control Act, as amended, 42 U.S.C. § 4901 et seq.;
      the
      Occupational Safety and Health Act, as amended, 29 U.S.C. § 651
et seq.;
      the
      Resource Conservation and Recovery Act, as amended, 42 U.S.C. § 609
et seq.;
      the
      Safe Drinking Water Act, as amended, 42 U.S.C. § 300(f) et seq.;
      the
      Comprehensive Environmental Response, Compensation and Liability Act, as
      amended, 42 U.S.C. § 9601 et seq.;
      the
      Toxic Substances Control Act, as amended, 15 U.S.C. § 2601 et seq.;
      the
      Atomic Energy Act, as amended, 42 U.S.C. § 2011 et seq.;
      the
      Nuclear Waste Policy Act of 1982, as amended, 42 U.S.C. § 10101
et seq.;
      and
      state superlien and environmental cleanup statutes, with implementing
      regulations and guidelines. Applicable Laws shall also include all federal,
      state, regional, county, municipal, agency, judicial and other local laws,
      statutes, ordinances, regulations, rules and rulings, whether currently in
      existence or hereinafter enacted or promulgated, that govern or relate to:
      (i) the existence, cleanup and/or remedy of contamination of property;
      (ii) the protection of the environment from spilled, deposited or otherwise
      emplaced contamination; (iii) the control of Hazardous Substances; or
      (iv) the use, generation, discharge, transportation, treatment, removal or
      recovery of Hazardous Substances.

    

    (h) Landlord
      represents to Tenant that, to the best of Landlord’s knowledge, except as may be
      disclosed to Tenant in writing prior to the execution of this Lease, there
      are
      no Hazardous Substances in, on or under the Demised Premises in violation of
      any
      Applicable Laws. 

    

    IX. DAMAGE
      OR DESTRUCTION.

    

    9.1 Tenant’s
      Notice of Damage.
      If any
      portion of the Demised Premises shall be damaged or destroyed by fire or other
      casualty, Tenant shall give prompt written notice thereof to Landlord
      (“Tenant’s
      Notice of Damage”).

    

    
      
        
        

      

      
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    9.2 Options
      to Terminate if Damage Substantial.
      Upon
      receipt of Tenant’s Notice of Damage, Landlord shall promptly proceed to
      determine the nature and extent of the damage or destruction and to estimate
      the
      time necessary to repair or restore the Demised Premises. As soon as reasonably
      possible, but not later than 60 days after the date of such damage
      Landlord
      shall give written notice to Tenant stating Landlord’s estimate of the time
      necessary to repair or restore the Demised Premises (“Landlord’s Notice of
      Repair Time”). If Landlord reasonably estimates that repair or restoration of
      the Demised Premises cannot be completed within one hundred fifty (150) business
      days
      from
      the time of Tenant’s Notice of Damage, Landlord and Tenant shall each have the
      option to terminate this Lease. If, however, the damage or destruction was
      caused by the act or omission of Tenant or Tenant’s Agents, Landlord shall have
      the option to terminate this Lease if Landlord reasonably estimates that the
      repair or restoration cannot reasonably be completed within one hundred fifty
      (150) business days from the time of Tenant’s Notice of Damage, but Tenant shall
      not have the option to terminate this Lease.
      Any
      option granted hereunder shall be exercised by written notice to the other
      party
      given within ten (10) days after Landlord’s Notice of Repair Time. If either
      Landlord or Tenant exercises its option to terminate this Lease, the Lease
      Term
      shall expire ten (10) days after the notice by either Landlord or Tenant
      exercising such party’s option to terminate this Lease. Following termination of
      this Lease under the provisions hereof, Landlord shall refund to Tenant such
      amounts of Basic Rent and Additional Rent theretofore paid by Tenant as may
      be
      applicable to the period subsequent to the time of Tenant’s Notice of Damage
      less the reasonable value of any use or occupation of the Demised Premises
      by
      Tenant subsequent to the time of Tenant’s Notice of Damage.

    

    9.3 Option
      to Terminate if Damage to Building.
      If the
      Building shall be damaged or destroyed by fire or other casualty (though the
      Demised Premises may not be affected or if affected, can be repaired within
      one
      hundred fifty (150) business days
      to
      the extent of 33-1/3% or more of the replacement value of the Building, Landlord
      may elect not to reconstruct or rebuild the Building. Upon written notice to
      Tenant given within twenty (20) days after Landlord’s Notice of Repair Time,
      this Lease shall terminate and Landlord shall refund to Tenant such amounts
      of
      Basic Rent and Additional Rent paid by Tenant for the period after such damage
      less the reasonable value of any use or occupation of the Demised Premises
      by
      Tenant during such period.

    

    9.4 Obligations
      to Repair and Restore.
      If
      repair and restoration of the Demised Premises can be completed within the
      period specified in Section
      9.2,
      in
      Landlord’s reasonable estimation, or if neither Landlord nor Tenant terminate
      this Lease as provided in Sections
      9.2 or 9.3,
      then
      this Lease shall continue in full force and effect and Landlord shall proceed
      forthwith to cause the Demised Premises (including any improvements constructed
      by Landlord but excluding any alterations, improvements, Changes, fixtures
      and
      personal property constructed or owned by Tenant) to be repaired and restored
      with reasonable diligence and there shall be abatement of Basic Rent and
      Additional Rent proportionate to the extent of the space and period of time
      that
      Tenant is unable to use and enjoy the Demised Premises.

    

    9.5 Application
      of Insurance Proceeds.
      The
      proceeds of any Property Insurance maintained on the Demised Premises, other
      than property insurance maintained by Tenant on fixtures and personal property
      of Tenant, shall be paid to and become the property of Landlord, subject to
      any
      obligation of Landlord to cause the Demised Premises to be repaired and restored
      and further subject to any rights under any Mortgage encumbering the Property
      to
      such proceeds. Landlord’s obligation to repair and restore the Demised Premises
      provided in this Section 9 is limited to the repair and restoration that can
      be
      accomplished with the proceeds of any Property Insurance maintained on the
      Demised Premises. The amount of any such insurance proceeds is subject to any
      right of any Mortgagee to apply such proceeds to its secured debt under its
      Mortgage.

    

    
      
        
        

      

      
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    X. CONDEMNATION.

    

    10.1 Taking
      - Substantial Taking - Insubstantial Taking.
      A
“Taking”
shall
      mean the taking of all or any portion of the Demised Premises or the Building
      as
      a result of the exercise of the power of eminent domain or condemnation for
      public or quasi-public use or the sale of all or part of the Demised Premises
      or
      the Building under the threat of condemnation. A “Substantial
      Taking”
shall
      mean a Taking of ten 10% or
      more
      of the Floor Area of either the Demised Premises or the Building, or parking
      area.
      An
“Insubstantial Taking” shall mean a Taking which does not constitute a
      Substantial Taking.

    

    10.2 Termination
      on Substantial Taking.
      If
      there is a Substantial Taking with respect to the Demised Premises or the
      Building, the Lease Term shall expire on the date of vesting of title pursuant
      to such Taking. In the event of termination of this Lease under the provisions
      hereof, Landlord shall refund to Tenant such amounts of Basic Rent and
      Additional Rent theretofore paid by Tenant as may be applicable to the period
      subsequent to the time of termination of this Lease.

    

    10.3 Restoration
      on Insubstantial Taking.
      In the
      event of an Insubstantial Taking with respect to the Demised Premises or the
      Building, this Lease shall continue in full force and effect, Landlord shall
      proceed forthwith to cause the Demised Premises (but excluding any alterations,
      improvements, Changes, fixtures and personal property constructed or owned
      by
      Tenant), less such Taking, to be restored as near as may be to the original
      condition thereof and there shall be abatement of Basic Rent and Additional
      Rent
      proportionate to the extent of the space so taken.

    

    10.4 Right
      to Award.
      The
      total award, compensation, damages or consideration received or receivable
      as a
      result of a Taking (“Award”)
      shall
      be paid to and be the property of Landlord, including, without limitation,
      any
      part of the Award made as compensation for diminution of the value of this
      leasehold or the fee of the Demised Premises. Tenant hereby assigns to Landlord,
      all of Tenant’s right, title and interest in and to any such Award. Tenant
      covenants and agrees to execute, immediately upon demand by Landlord, such
      documents as may be necessary to facilitate collection by Landlord of any such
      Award. Notwithstanding Landlord’s right to the entire Award, Tenant shall be
      entitled to a separate award, if any, for the loss of Tenant’s personal
      property, the loss of Tenant’s business and profits, and Tenant’s moving
      expenses.

    

    XI. DEFAULTS
      BY TENANT.

    

    11.1 Defaults
      Generally.
      In the
      event that any of the following events shall occur, Tenant shall be deemed
      to be
      in default of Tenant’s obligations under this Lease (each of the following shall
      be referred to as a “Default by Tenant”).

    

    11.2 Failure
      to Pay Rent or Other Amounts.
      A
      Default by Tenant shall exist if Tenant fails to pay Basic Rent, Additional
      Rent, Monthly Deposits, or any other amounts payable by Tenant within five
      (5)
      days after written notice from Landlord that such
      rental or other amount is due under the terms of this Lease.

    

    11.3 Violation
      of Lease Terms.
      A
      Default by Tenant shall exist if Tenant breaches or fails to comply with any
      non-monetary agreement, term, covenant or condition in this Lease applicable
      to
      Tenant, and Tenant does not cure such breach or failure within twenty (20)
      days
      after notice thereof by Landlord to Tenant, or, if such breach or failure to
      comply cannot be reasonably cured within such 20-day period, if Tenant shall
      not
      in good faith commence to cure such breach or failure to comply within such
      20-day period or shall not diligently proceed therewith to completion within
      sixty (60) days following such notice. 

    

    
      
        
        

      

      
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    11.4 Non-occupancy
      of Demised Premises.
      A
      Default by Tenant shall exist if Tenant shall abandon the Demised Premises
      and
      fail to pay rent.

    

    11.5 Transfer
      of Interest Without Consent.
      A
      Default by Tenant shall exist if all or any portion of Tenant’s interest under
      this Lease or in the Demised Premises shall be transferred to or pass to or
      devolve upon any other party without Landlord’s prior written consent, if
      required under this lease.

    

    11.6 Execution
      and Attachment against Tenant.
      A
      Default by Tenant shall exist if Tenant’s interest under this Lease or in the
      Demised Premises shall be taken upon execution or by other process of law
      directed against Tenant, or shall be subject to any attachment at the instance
      of any creditor or claimant against Tenant and said attachment shall not be
      discharged or disposed of within thirty calendar
      (30)
days
      after the levy thereof.

    

    11.7 Bankruptcy
      or Related Proceedings.
      A
      Default by Tenant shall exist (a) if Tenant shall file a petition in bankruptcy
      or insolvency or for reorganization or arrangement under the bankruptcy laws
      of
      the United States or under any similar act of any state, or shall voluntarily
      take advantage of any such law or act by answer or otherwise, admit in writing
      its inability to pay its debts as they become due, or if Tenant is generally
      unable to pay its debts as they become due, or be dissolved or shall make an
      assignment for the benefit of creditors or (b) if involuntary proceedings under
      any such bankruptcy or insolvency law or for the dissolution of Tenant shall
      be
      instituted against Tenant or a receiver or trustee shall be appointed for the
      Demised Premises or for all or substantially all of the property of Tenant,
      and
      such involuntary proceedings shall not be dismissed or such receivership or
      trusteeship vacated within thirty (30) days after such institution or
      appointment. Notwithstanding any other provisions contained in this Lease,
      in
      the event Tenant or its successors or assigns shall become insolvent or
      bankrupt, or if their interest under this Lease shall be levied upon or sold
      under execution or other legal process by any depository institution supervisory
      authority (“Authority”), Landlord may, in either such event, terminate this
      Lease only with the concurrence of any receiver or liquidator appointed by
      such
      authority, provided that in the event this Lease is terminated by the receiver
      or liquidator, the maximum claim of Landlord for rent, damages or indemnity
      for
      injury resulting from the termination, rejection or abandonment of the unexpired
      Lease shall be by law no greater than an amount equal to all accrued and unpaid
      rent to the date of termination; and further provided that to continue the
      Lease, any receiver or liquidator appointed by such Authority or its assignee
      must continue to honor the terms of this Lease.

    

    XII. LANDLORD’S
      REMEDIES.

    

    12.1 Remedies
      Generally.
      Upon
      the occurrence of any Default by Tenant, Landlord shall have the right, at
      Landlord’s election, then or any time thereafter, to exercise any one or more of
      the following remedies.

    

    12.2 Cure
      by Landlord.
      In the
      event of a Default by Tenant, Landlord may, at Landlord’s option, but without
      obligation to do so, and without releasing Tenant from any obligations under
      this Lease, make any payment or take any action as Landlord may deem necessary
      or desirable to cure any such Default by Tenant in such manner and to such
      extent as Landlord may deem necessary or desirable. Landlord may do so without
      demand on, or written notice to, Tenant and without giving Tenant an opportunity
      to cure such Default by Tenant. Tenant covenants and agrees to pay to Landlord,
      within ten (10) days after demand, all advances, costs and expenses of Landlord
      in connection with the making of any such payment or the taking of any such
      action including, without limitation, (a) a charge in the amount of fifteen
      percent (15%) of such advances, costs and expenses payable to Landlord to
      compensate for the administrative overhead attributable to such action,
      (b) reasonable attorneys’ fees, and (c) interest as hereinafter
      provided from the date of payment of any such advances, costs and expenses
      by
      Landlord. Action taken by Landlord may include commencing, appearing in,
      defending or otherwise participating in any action or proceeding and paying,
      purchasing, contesting or compromising any claim, right, encumbrance, charge
      or
      lien, with respect to the Demised Premises which Landlord, in its discretion,
      may deem necessary or desirable to protect its interest in the Demised Premises
      and under this Lease. In the event that the Lease Term has expired or Tenant
      is
      no longer occupying the Demised Premises, Landlord shall be entitled to take
      such actions as provided under this Section
      12.2
      without
      Landlord being required to provide the notice to Tenant under Section
      11.3.

    

    
      
        
        

      

      
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    12.3 Termination
      of Lease and Damages.
      In the
      event of a Default by Tenant, Landlord may terminate this Lease, effective
      at
      such time as may be specified by written notice to Tenant, and demand (and,
      if
      such demand is refused, recover) possession of the Demised Premises from Tenant.
      Tenant shall remain liable to Landlord for damages in an amount equal to (a)
      the
      Basic Rent that was not paid to Landlord during any free rent period under
      the
      Lease and (b) the Basic Rent, Additional Rent and other sums which would have
      been owing by Tenant hereunder for the balance of the Lease Term, had this
      Lease
      not been terminated, less the net proceeds, if any, of any reletting of the
      Demised Premises by Landlord subsequent to such termination, after deducting
      all
      Landlord’s expenses in connection with such recovery of possession or reletting.
      Landlord shall be entitled to collect and receive such damages from Tenant
      on
      the days on which the Basic Rent, Additional Rent and other amounts would have
      been payable if this Lease had not been terminated. Alternatively, at the option
      of Landlord, Landlord shall be entitled to recover forthwith from Tenant, as
      damages for loss of the bargain and not as a penalty, an aggregate sum which,
      at
      the time of such termination of this Lease, represents the excess, if any,
      of
      (a) (i) the Basic Rent that was not paid to Landlord during any free rent
      period under the Lease plus (ii) the aggregate of the Basic Rent, Additional
      Rent and all other sums payable by Tenant hereunder that would have accrued
      for
      the balance of the Lease Term, over (b) the aggregate rental value of the
      Demised Premises for the balance of the Lease Term, both discounted to present
      worth at the rate of eight percent (8%) per annum.

    

    12.4 Repossession
      and Reletting.
      In the
      event of a Default by Tenant, Landlord may reenter and take possession of the
      Demised Premises or any part thereof, without demand or notice, and repossess
      the same and expel Tenant and any party claiming by, under or through Tenant,
      and remove the effects of both using such force for such purposes as may be
      necessary, without being liable for prosecution on account thereof or being
      deemed guilty of any manner of trespass, and without prejudice to any remedies
      for arrears of rent or right to bring any proceeding for breach of covenants
      or
      conditions. No such reentry or taking possession of the Demised Premises by
      Landlord shall be construed as an election by Landlord to terminate this Lease
      unless a written notice of such intention is given to Tenant. No notice from
      Landlord hereunder or under a forcible entry and detainer statute or similar
      law
      shall constitute an election by Landlord to terminate this Lease unless such
      notice specifically so states. Landlord reserves the right, following any
      reentry or reletting, to exercise its right to terminate this Lease by giving
      Tenant such written notice, in which event this Lease shall terminate as
      specified in said notice. After recovering possession of the Demised Premises,
      Landlord may, from time to time, but shall not be obligated to, relet the
      Demised Premises, or any part thereof, for the account of Tenant, for such
      term
      or terms and on such conditions and upon such other terms as Landlord, in its
      sole and subjective discretion, may determine. Landlord may make such repairs,
      alterations or improvements as Landlord may consider appropriate to accomplish
      such reletting, and Tenant shall reimburse Landlord upon demand for all costs
      and expenses, including attorneys’ fees, which Landlord may incur in connection
      with such reletting. Landlord may collect and receive the rents for such
      reletting but Landlord shall in no way be responsible for or liable for any
      failure to relet the Demised Premises, or any part thereof, or for any failure
      to collect any rent due upon such reletting. Notwithstanding Landlord’s recovery
      of possession of the Demised Premises, Tenant shall continue to pay on the
      dates
      herein specified, the Basic Rent, Additional Rent and other amounts which would
      be payable hereunder if such repossession had not occurred. Upon the expiration
      or earlier termination of this Lease, Landlord shall refund to Tenant any
      amount, without interest, by which the amounts paid by Tenant, when added to
      the
      net amount, if any, recovered by Landlord through any reletting of the Demised
      Premises, exceeds the amounts payable by Tenant under this Lease. If, in
      connection with any reletting, the new lease term extends beyond the existing
      Lease Term, or the premises covered thereby include other premises not part
      of
      the Demised Premises, a fair apportionment of the rent received from such
      reletting and the expenses incurred in connection therewith shall be made in
      determining the net amount recovered from such reletting.

    

    
      
        
        

      

      
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    12.5 Landlord’s
      Lien and Enforcement.
      Tenant
      hereby grants to Landlord herby waives and releases
      a
      security interest in all personal property of Tenant now or hereafter located
      on
      the Demised Premises.

    

    12.6 Suits
      by Landlord.
      Actions
      or suits for the recovery of amounts and damages payable under this Lease may
      be
      brought by Landlord from time to time, at Landlord’s election, and Landlord
      shall not be required to await the date upon which the Lease Term would have
      expired to bring any such action or suit.

    

    12.7 Recovery
      of Landlord Enforcement Costs.
      All
      costs and expenses incurred by Landlord in connection with collecting any
      amounts and damages owing by Tenant pursuant to the provisions of this Lease
      or
      to enforce any provision of this Lease, including without limitation reasonable
      attorneys’ fees, whether or not any action is commenced by Landlord, shall be
      paid by Tenant to Landlord upon demand. The prevailing party shall be entitled
      to an award of such attorney’s fees and costs in any action arising out of this
      Lease. 

    

    12.8 Administrative
      Late Charge.
      Notwithstanding any other remedies for nonpayment of rent, if the monthly
      payment of Basic Rent and Additional Rent are not received by Landlord on or
      before the fifth (5th)
      day
      after written notice of non-payment of the month for which such rental is due,
      or
      if any
      other payment due Landlord by Tenant is not received by Landlord on or before
      the tenth (10) day of the month next following the month in which Tenant was
      invoiced, an administrative late charge of five percent (5%) of such past due
      amount shall become due and payable, as Additional Rent, in addition to such
      amounts owed under this Lease to help defray the additional cost to Landlord
      for
      processing such late payments.

    

    12.9 Interest
      on Past-Due Payments and Advances.
      Tenant
      covenants and agrees to pay Landlord, as Additional Rent, interest on demand
      at
      the rate equal to the lesser of (a) of eighteen percent (18%) per
      annum, compounded on a monthly basis or (b) the highest rate permitted by
      applicable law, on the amount of any Basic Rent, Additional Rent or other
      charges not paid when due, from the date due and payable, and on the amount
      of
      any payment made by Landlord required to have been made by Tenant under this
      Lease and on the amount of any costs and expenses, including reasonable
      attorneys’ fees, paid by Landlord in connection with the taking of any action to
      cure any Default by Tenant, from the date of making any such payment or the
      advancement of such costs and expenses by Landlord.

    

    12.10 Additional
      Damages.
      In the
      event of a Default by Tenant, Landlord shall be entitled to recover as damages,
      in addition to all other damages and remedies provided hereunder, an amount
      equal to the total of (i) the cost of recovering possession of the Demised
      Premises, (ii) the unpaid Basic Rent, Additional Rent and any other amounts
      current at the time of such Default by Tenant, neither Landlord no Tenant shall
      be liable to the other for consequential or special damages.

    

    12.11 Landlord’s
      Bankruptcy Remedies.
      Nothing
      contained in this Lease shall limit or prejudice the right of Landlord to prove
      and obtain as liquidated damages in any bankruptcy, insolvency, receivership,
      reorganization or dissolution proceeding, an amount equal to the maximum
      allowable by any statute or rule of law governing such proceeding in effect
      at
      the time when such damages are to be proved, whether or not such amount be
      greater, equal or less than the amounts recoverable, either as damages or rent,
      under this Lease.

    

    
      
        
        

      

      
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    12.12 Remedies
      Cumulative.
      Exercise of any of the remedies of Landlord under this Lease shall not prevent
      the concurrent or subsequent exercise of any other remedy provided for in this
      Lease or otherwise available to Landlord at law or in equity. The remedies
      provided for in the Lease are in addition to any other remedies available to
      Landlord at law or in equity by statute or otherwise.

    

    XIII. SURRENDER
      AND HOLDING OVER.

    

    13.1 Surrender
      upon Lease Expiration.
      Upon
      the expiration or earlier termination of this Lease, or on the date specified
      in
      any demand for possession by Landlord after any Default by Tenant, Tenant
      covenants and agrees to surrender possession of the Demised Premises to Landlord
      broom clean, with all lighting, doors (including, without limitation,
electrical
      and mechanical systems in good working order and condition, all walls in clean
      condition and holes or punctures in the walls repaired, and otherwise in the
      same condition as when Tenant first occupied the Demised Premises, ordinary
      wear
      and tear excepted.
      Tenant, at Landlord’s option, shall transfer the telephone services to Landlord
      instead of terminating such service account, provided that Landlord bears any
      costs of such transfer. If, within the last ninety (90) days of the Lease Term,
      Tenant has vacated the Demised Premises, Landlord shall have the right to
      decorate, remodel, repair, or otherwise prepare the Demised Premises for
      reletting and re-occupancy.

    

    13.2 Holding
      Over.
      If
      Tenant shall hold over after the expiration of the Lease Term, without written
      agreement providing otherwise, Tenant shall be deemed to be a trespasser upon
      the Demised Premises. If Landlord consents in writing to such holdover, then
      Tenant shall be deemed to be a tenant from month to month, at a monthly rental,
      payable in advance, equal to one hundred fifty percent (150%) of
      the
      Basic Rent and Additional Rent,
      and
      Tenant shall be bound by all of the other terms, covenants and agreements of
      this Lease. Nothing contained herein shall be construed to give Tenant the
      right
      to hold over at any time, and Landlord may exercise any and all remedies at
      law
      or in equity to recover possession of the Demised Premises, as well as any
      damages incurred by Landlord, due to Tenant’s failure to vacate the Demised
      Premises and deliver possession to Landlord as herein provided.

    

    XIV. MISCELLANEOUS.

    

    14.1 No
      Implied Waiver.
      No
      failure by Landlord to insist upon the strict performance of any term, covenant
      or agreement contained in this Lease, no failure by Landlord to exercise any
      right or remedy under this Lease, and no acceptance of full or partial payment
      during the continuance of any Default by Tenant, shall constitute a waiver
      of
      any such term, covenant or agreement, or a waiver of any such right or remedy,
      or a waiver of any such Default by Tenant.

    

    14.2 Survival
      of Provisions.
      The
      covenants, agreements and obligations of the parties hereto shall continue
      in
      force and effect and survive any expiration of the Lease Term or termination
      of
      this Lease.

    

    14.3 Covenants
      Independent.
      This
      Lease shall be construed as if the covenants herein between Landlord and Tenant
      are independent, and not dependent, and Tenant shall not be entitled to any
      offset against Landlord if Landlord fails to perform its obligations under
      this
      Lease.

    

    14.4 Covenants
      as Conditions.
      Each
      provision of this Lease performable by Tenant shall be deemed both a covenant
      and a condition.

    

    
      
        
        

      

      
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    14.5 Tenant’s
      Remedies.
      Tenant
      may bring a separate action against Landlord for any claim Tenant may have
      against Landlord under this Lease, provided Tenant shall first give written
      notice thereof to Landlord and shall afford Landlord a reasonable opportunity
      to
      cure any such default. In addition, Tenant shall send notice of such default
      by
      certified or registered mail, postage prepaid, to any Mortgagee of whose address
      Tenant has been notified in writing, and shall afford such holder a reasonable
      opportunity to cure any default on Landlord’s behalf but in no event less than
      thirty (30) days following such notice. In no event shall Landlord be
      responsible for any consequential damages incurred by Tenant including, but
      not
      limited to, loss of profits or interruption of business as a result of any
      default by Landlord hereunder.

    

    14.6 Binding
      Effect.
      This
      Lease shall extend to and be binding upon the heirs, executors, legal
      representatives, successors and assigns of the respective parties hereto. The
      terms, covenants, agreements and conditions in this Lease shall be construed
      as
      covenants running with the Land.

    

    14.7 No
      Recording.
      Neither
      this Lease nor any memorandum or other memorialization of this Lease shall
      be
      recorded in the records of any County Clerk and Recorder of the State of
      Colorado or any other public records without Landlord’s prior
      consent.

    

    14.8 Notices
      and Demands.
      All
      billings under this Lease shall be provided by Landlord to Tenant at the address
      for billings set forth in the Summary by regular mail or personal delivery.
      All
      other notices and demands under this Lease shall be in writing, signed by the
      party giving the same and shall be deemed properly given and received when
      personally delivered or three (3) business days after mailing through the United
      States mail, postage prepaid, certified or registered, return receipt requested,
      addressed to the party to receive the notice at the address set forth for such
      party in the Summary or at such other address as either party may notify the
      other of in writing.

    

    14.9 Time
      of the Essence.
      Time is
      of the essence under this Lease, and all provisions herein relating thereto
      shall be strictly construed.

    

    14.10 Captions
      for Convenience.
      The
      headings and captions hereof are for convenience only and shall not be
      considered in interpreting the provisions hereof.

    

    14.11 Severability.
      If any
      provision of this Lease shall be held invalid or unenforceable, the remainder
      of
      this Lease shall not be affected thereby, and there shall be deemed substituted
      for the affected provision a valid and enforceable provision as similar as
      possible to the affected provision.

    

    14.12 Governing
      Law.
      This
      Lease shall be interpreted and enforced according to the laws of the State
      of
      Colorado, without regard to conflicts of laws principles. 

    

    14.13 Entire
      Agreement.
      This
      Lease, the Summary, Attachments, Exhibits and Addenda referred to herein,
      constitute the final and complete expression of the parties’ agreements with
      respect to the Demised Premises and Tenant’s occupancy thereof. Each party
      agrees that it has not relied upon or regarded as binding any prior agreements,
      negotiations, representations, or understandings, whether oral or written,
      except as expressly set forth herein.

    

    14.14 No
      Oral Amendment or Modifications.
      No
      amendment or modification of this Lease, and no approvals, consents or waivers
      by Landlord under this Lease, shall be valid or binding unless in writing and
      executed by the party to be bound.

    

    14.15 Format.
      This
      Lease has been prepared to reflect all additions and deletions negotiated
      between Landlord and Tenant from the initial form of this Lease submitted by
      Landlord to Tenant. All provisions and terms that are stricken are deletions
      and
      shall not be a part of this Lease; provided, however, a deletion from this
      Lease
      shall not be construed to create the opposite intent of the deleted provision.
      All provisions and terms which are underlined (other than headings, titles
      and
      captions) are additions and shall be part of this Lease. Tenant acknowledges
      that it has had the opportunity to thoroughly review and negotiate this Lease
      and that the rule of construction to the effect that any ambiguities are to
      be
      resolved against the drafting party shall not be employed in the interpretation
      of this Lease.

    

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    14.16 Real
      Estate Brokers.
      Tenant
      covenants to pay, hold harmless and indemnify the Landlord from and against
      any
      and all cost, expense or liability for any compensation, commissions, charges
      or
      claims by any broker or other agent with respect to this Lease or the
      negotiation thereof, whether or not meritorious, other than the broker(s) listed
      as the Broker(s) on the Summary. Tenant acknowledges Landlord is not liable
      for
      any representations by Tenant’s Broker (as set forth in Section
      13 of
      the
      Summary) or by Landlord’s Broker except as required in Section
      14.17(c),
      regarding the Demised Premises, the Building, the Project, or this
      Lease.

    

    14.17 Intentionally
      Omitted.

    

    14.18 Intentionally
      Omitted.

    

    14.19 Parking.
      Except
      as set forth in summary
      Tenant
      shall be entitled to the non-exclusive use of the Parking Area up to the maximum
      number of unassigned spaces set forth in the Summary, on a first come-first
      serve basis. Landlord shall be entitled to establish reasonable rules and
      regulations governing the use of the Parking Area including, without limitation,
      the right to issue parking permits and decals to be affixed to motor vehicles
      (with the reasonable costs thereof being a part of the Common Facilities
      Charges). Landlord may designate a specific area for Tenant’s parking spaces
      within the Parking Area and may modify, relocate, reduce or restrict any of
      the
      parking spaces in the Parking Area, so long as Tenant’s number of parking spaces
      is not reduced.
      Landlord shall be entitled to permit the use of the Parking Area for other
      purposes, including uses not related to the operation of the Building. Landlord
      shall not be liable for and Tenant hereby releases and covenants not to bring
      any action against Landlord for any loss, damage or theft to or from any motor
      vehicle or other property of Tenant or Tenant’s Agents which occurs in or about
      the Parking Area. If any visitor parking is provided by Landlord in the Parking
      Area, the use thereof shall be limited to visitors of Tenant and other tenants
      of the Building, except as otherwise permitted by Landlord. Notwithstanding
      the
      foregoing, Tenant’s right to use such parking spaces shall be a license only and
      Landlord’s inability to make such spaces available at any time for reasons
      beyond Landlord’s control shall not constitute a default by Landlord under this
      Lease.

    

    14.20 Relationship
      of Landlord and Tenant.
      Nothing
      contained herein shall be deemed or construed as creating the relationship
      of
      principal and agent or of partnership, or of joint venture by the parties
      hereto, it being understood and agreed that no provision contained in this
      Lease
      nor any acts of the parties hereto shall be deemed to create any relationship
      other than the relationship of Landlord and Tenant.

    

    14.21 Authority
      of Tenant.
      Both
      Landlord and Tenant executing this Lease on behalf of Tenant and Landlord
      represent and warrant that
      he
      or she is duly authorized to deliver this Lease on behalf of Tenant and Landlord
      and that this Lease is binding upon Tenant and Landlord in accordance with
      its
      terms.

    

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

     

    

    

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    

     

    

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “A”

    

    Legal
      Descriptions of Land and Project

    

    

    

    Land:
      THE NORTH 200 FEET OF THE SOUTH 250 FEET OF THE WEST 135 FEET OF THE EAST 160
      FEET OF THE EAST ONE-HALF OF THE SOUTHWEST ONE-QUARTER OF THE SOUTHWEST
      ONE-QUARTER OF THE SOUTHEAST ONE-QUARTER OF SECTION 12, TOWNSHIP 4 SOUTH, RANGE
      69 WEST OF THE 8TH
      PRINCIPAL MERIDIAN CITY OF LAKEWOOD, COUNTY OF JEFFERSON. STATE OF COLORADO
      AND
      CONTAINS AN AREA OF 27,001.05 SQUARE FEET OF 0.62 ACRE. MORE OR
      LESS

     

     

    
 

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      “B”

    

    Location
      of Demised Premises Within Building

    

    

     

    

    

    

    
      
        
        

      

      
        B-1

        
          

        

      

       

    

    EXHIBIT
      “C”

    

    Rules
      & Regulations

    

    

    The
      following rules and regulations shall be in effect at the Building. Landlord
      reserves the right to adopt reasonable nondiscriminatory modifications and
      additions to the regulations at any time by written notice to Tenant. In the
      case of any conflict between these rules and regulations and the Lease, the
      Lease shall be controlling.

    

    1. The
      sidewalks, entrances shall not be obstructed or used for any purpose other
      than
      ingress and egress.

    

    2. No
      awning
      or other projection shall be displayed or attached to the outside walls of
      the
      Building without the prior written consent of Landlord. The standard blinds
      provided by Landlord shall not be removed from the windows and no other
      curtains, shades or screens, shall be installed without the prior consent of
      Landlord. 

    

    3. SIGNAGE:
      See Exhibit & Standards. Tenant may place at Tenant’s expense one sign above
      the entry per Exhibit subject to Landlord’s prior written approval (which shall
      not be unreasonably withheld) and shall be subject to any applicable
      governmental laws, ordinances and regulations and in compliance with Landlord’s
      signage program. Tenant shall remove all such signs and graphics prior to the
      termination of this Lease. Such installations and removals shall be made in
      such
      manner as to avoid injury or defacement of the Demised Premises; and Tenant
      shall repair any injury or defacement, including without limitation,
      discoloration caused by such installation or removal.

    

    4. The
      toilets, wash bowls and other plumbing fixtures shall not be used for any
      purpose other than those for which they were constructed, and no sweepings,
      rubbish rags or other substances shall be thrown therein. All damages resulting
      from any misuse of the fixtures shall be borne by tenant who, or whose servants,
      employees, agents, visitors or licensees shall have caused the
      same.

    

    5. No
      bicycles, vehicles or animals of any kind shall be brought into or kept in
      or
      about the Demised Premises, and no cooking shall be done or permitted by any
      tenant on the Demised Premises, except use of microwave and the
      preparation of coffee, tea, hot chocolate and similar items for tenants and
      their employees shall be permitted. No tenant shall cause or permit any unusual
      or objectionable odors to be produced upon or permeate the Demised
      Premises.

    

    6. The
      Demised Premises shall not be used for the manufacturing or for the storage
      of
      merchandise except as such storage may be incidental to the use of the Demised
      Premises for general purposes. No tenant shall occupy or permit any portion
      of
      his Demised Premises to be occupied for the manufacture or sale of alcohol,
      liquor, narcotics (other than prescription medicines sold under license) or
      tobacco in any form. The Demised Premises shall not be used for lodging or
      sleeping or for any immoral or illegal purposes.

    

    7. Tenant
      shall not do or permit anything to be done in the Demised Premises, or bring
      or
      keep anything in the Demised Premises, which shall in any way increase the
      rate
      of fire insurance on the Building, or on the property kept in the Building,
      or
      obstruct or interfere with the rights of other tenants, or conflict with the
      regulations of the Fire Department or the fire laws, or with any insurance
      policy upon the Building, or any portion of the Building or its contents, or
      with any rules and ordinances established by the board of health or other
      applicable governmental authority.

    

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    8. No
      tenant
      shall use, keep or permit to be used or kept any foul or noxious gas or
      substances in the Demised Premises or the Building or permit or suffer the
      Demised Premises to be occupied or used in a manner offensive or objectionable
      to Landlord or other tenants of the Building of neighboring buildings by reason
      of noise odors and/or vibrations, including, without limitation, by the use
      of
      any musical instrument, radio, phonograph, sound-producing instrument or device
      that can be heard outside the Demised Premises.

    

    9. No
      tenants shall place any radio or television antenna on the roof or on any part
      of the inside or outside of the Building without written permission of Landlord.
      No tenant shall operate any electrical device from which may emanate electrical
      waves, which may interfere with or impair radio or television broadcasting
      or
      reception from or in the Building or any part of the Project.

    

    10. Landlord
      reserves the right to exclude or expel from the Building or any part of the
      Project any person who in the reasonable judgment of Landlord is intoxicated,
      is
      under the influence of alcohol or drugs, who presents a danger to other persons
      or property or who shall in any manner do any act in violation of these Rules
      and Regulations. 

    

    11. No
      tenant
      nor any of tenant’s servants, employees, agents, visitors or licensees, shall
      any time keep or permit to be kept upon the Demised Premises any inflammable,
      combustible or explosive fluid, chemical or substance without the prior approval
      of Landlord.

    

    12. No
      additional locks or bolts of any kind shall be placed upon any of the doors
      by
      any tenant, nor shall any changes be made in existing locks or the mechanism
      thereof, except tenant shall at his option have the existing exterior locks
      re-keyed at their expense by Landlords locksmith.

    

    13. The
      Demised Premises shall only be used as specifically permitted under the terms
      of
      the Lease.

    

    14. Tenant
      shall maintain liability insurance in the amounts specified in the Lease and
      name Landlord as an additional insured and provide Landlord with a certificate
      of insurance.

    

    15. Tenant
      and their employees and guests shall observe all signs and posted speed limits
      and park within painted or assigned parking stalls only.

    

    16. Car
      repairs, waxing, washing or cleaning of vehicles within the Demised Premises
      and/or in any common areas or parking areas is strictly prohibited.

    

    17. Tenant
      shall maintain at their expense any leased warehouse area at a temperature
      complying with local codes and requirements to protect fire sprinkler system
      from freezing during winter months; the code requirement is min. of 40
      degrees.

    

    18. The
      expense of repairing any damage resulting from a violation of any Rule or
      Regulation herein shall be borne by the tenant by whom, or by whose contractors,
      employees or invitees, the damage shall have been caused.

    

    
      
        
        

      

      
        C-2

        
          

        

      

       

    

    EXHIBIT
      “D”

    

    Signage
      Specifications

    

    

    

    

    

    

    
      
        
        

      

      
        D-1

        
          

        

      

       

    

    EXHIBIT
      “E”

    

    Space
      Plan

    

    

    

    

    

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

    

     

     

     

     

    
      
        
        

      

      
        E-2

        
          

        

      

      
        
        

      

    

    

    
      
        
        

      

      
        E-3

        
          

        

      

      
        
        

      

    

     

     

     

    

    
 

     

    
      
        
        

      

      
        E-4

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        E-5

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        E-6

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “F”

    

    Work
      Letter

    

    

    THIS
      WORK LETTER
      is
      attached as Exhibit
      F
      to the
      Lease of Space Single Story Office dated as of June 19, 2006 between
      Clairbridge Companies, LLC a Colorado limited liability Company (“CLAIRBRIDGE
      LLC”),
      as
      (“Landlord”)
      and
      Solera National Bancorp a Delaware corporation (“Tenant”).

    

    SOLERA
      NATIONAL BANCORP,Inc.,
      a
      Delaware corporation (“Tenant”),
      as
      tenant, and constitutes the further agreement between Landlord and Tenant as
      follows:

     

    Concurrently
      herewith, Tenant and Landlord have executed a Lease covering the Demised
      Premises (the provisions of said Lease are herein incorporated by reference
      as
      if fully set forth herein). All capitalized terms not otherwise defined herein
      shall have the meanings set forth in the Lease. In consideration of the
      execution of said Lease, Tenant and Landlord mutually agree as
      follows:

     

    1. Landlord
      Work.
      Landlord agrees to act as construction manager for construction of certain
      tenant improvements and Landlord agrees to deliver the Demised Premises and
      provide a 1 year warranty on all Landlord work
      to the
      Tenant and construct the tenant improvements at its sole cost ("Landlord
      Work")
      in a
      good and workmanlike manner, using building standard materials, and in
      reasonable accordance with the ( “Space
      Plan”)
      prepared by Kenney
      Designs,
      dated_______________ and the plans and specifications” approved by Landlord and
      Tenant dated ___________, 2006, the ("Approved
      Plans and Specifications")
      and
      attached hereto as Schedule
      “1”.
      Landlord is a licensed General Contractor and will be performing the work as
      defined herein. Landlord shall select the subcontractors to complete the
      Landlord Work per the Approved Plans and Specifications, and reserves the right
      to perform certain aspects (Electrical and Mechanical work) of this project
      under a “Design Build” format. Except as set forth herein, Landlord shall have
      no further obligations thereafter with respect to repair or replacement of
      items
      in the Demised Premises. Upon Substantial Completion of the Landlord Work and
      the Punch List Items (as such terms are defined below), Landlord shall have
      no
      further obligation with regard to tenant improvements within the Demised
      Premises. Notwithstanding anything contained herein to the contrary, all (i)
      Tenant moving expenses and (ii) costs for installation of Tenant’s equipment and
      furnishings shall be the sole responsibility of Tenant. Landlord shall cause
      Substantial Completion of the Landlord Work to occur prior to September 1,
      2006
      other than Punch List items which shall be corrected within sixty (60) days
      thereafter. Notwithstanding the foregoing, Section 3.3
      of the
      Lease sets forth Tenant’s sole remedy with respect to any failure by Landlord to
      cause Substantial Completion of the Landlord Work by September 1, 2006.

    

    2. Substantial
      Completion.
      “Substantial
      Completion”
of
      construction of the Landlord’s Work shall be defined as the date upon which the
      space planner or other consultant engaged by Landlord determines that the
      Landlord’s Work has been substantially completed in accordance with the Approved
      Plans and Specifications, except for such items that constitute minor defects
      or
      adjustments which can be completed after occupancy without causing any material
      interference with Tenant’s use of the Demised Premises (so called “Punch
      List”
items).
      After the completion of the Landlord’s Work, Tenant shall, upon demand, execute
      and deliver to Landlord the Commencement Letter accepting the improvements
      performed on the Demised Premises. The failure of Tenant to take possession
      of
      or to occupy the Demised Premises as per the terms of the Lease shall not serve
      to relieve Tenant of any obligations arising on the Commencement Date or delay
      the payment of Basic Rent, Additional Rent or any other obligations by
      Tenant.

     

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

    3. Changes
      to Approved Plans and Specifications.
      Any
      changes, modifications, alterations or revisions to the Approved Plans and
      Specifications (each, a “Change”)
      shall
      be made only with Landlord’s prior written approval and shall be at Tenant’s
      sole cost and expense subject to the terms and condition of Article 16 of the
      Addendum to lease
      (including, without limitation, any additional space planning services and
      architectural / engineering drawings that may be required in connection with
      such modifications). If Tenant shall request any Change in any of the Approved
      Plans and Specifications after approval by Landlord, Landlord shall, if
      required, have such revisions to the drawings prepared, and Tenant shall
      reimburse Landlord for the net
      cost of
      such revisions upon demand. Promptly upon completion of any required revisions,
      Landlord shall notify Tenant in
      writing
      of the increased cost, if any, which will be chargeable to Tenant by reason
      of
      such Change. Tenant shall, within one (1) business day, notify Landlord in
      writing whether it desires to proceed with such Change. In the absence of such
      written authorization, Landlord shall have the option to continue work on the
      Demised Premises disregarding the requested Change, or Landlord may elect to
      discontinue work on the Demised Premises until it receives notice of Tenant's
      decision, and any such discontinuation of work shall constitute a Tenant Delay.
      

     

    4. Costs
      of Approved Plans and Specifications.
      Landlord is responsible for the fees and expenses of producing the Approved
      Plans and Specifications and any associated construction and engineering
      drawings. 

     

    5. Certificate
      of Occupancy.
      Upon
      Substantial Completion of the Landlord Work, Landlord shall obtain at Landlord’s
      expense a certificate of occupancy for the Demised Premises. 

    

    6. Omitted.

    

    7. Tenant
      Delay.
      Tenant’s obligation to commence paying Basic Rent will not be delayed or
      extended by any “Tenant
      Delay”
which
      includes, without limitation, delay: (i) caused by or resulting from any Change
      to the Approved Plans and Specifications requested by Tenant or Tenant’s Agents;
      (ii) in delivering, installation or completion of any items specified by Tenant
      to the extent that such items require ordering or work deadlines inconsistent
      with the scheduled Commencement Date; (iii) associated with any work at the
      Demised Premises performed by Tenant or ay of Tenant’s Agents, or (iv) of any
      other kind or nature caused by Tenant or any of Tenant’s Agents. 

    

    8. Tenant
      Representative.
      Tenant
      has designated Andy Kenney
      as its
      representative with respect to the matters set forth in this Work Letter, who
      shall have full authority and responsibility to act on behalf of Tenant as
      required in this Work Letter.

    

    9. Landlord
      Representative.
      Landlord has Diedra Garcia as its sole representative with respect to Landlord’s
      responsibilities under this Work Letter who shall have full authority and
      responsibility to act on behalf of the Landlord as required in this Work
      Letter.

    

    10. Notices.
      Any and
      all notices required to be given hereunder shall be in writing in accordance
      with the terms and provisions of the Lease; provided, however, in all cases
      notices shall also be given to those individuals specified in Sections
      8 and 9
      above.

    

    
      
        
        

      

      
        F-2

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have caused this Work Letter concurrently with
      the
      execution of the Lease.

     

    

    TENANT:

    

    SOLERA
      NATIONAL BANCORP, Inc., a Delaware

    corporation

    

    

    By:
      /s/ Robert J.
      Fenton                                                                 

    Name:
      Robert J.
      Fenton                                                                  

    Title:
      V.P., Secretary &
Treasurer                                                 

    

    

    

    LANDLORD:

    

    CLAIRBRIDGE
      COMPANIES, LLC a Colorado limited liability Company 

    

    

    By:
      /s/ Diedra
      Garcia                                                                     

    Name:
      Diedra Garcia

    Title:
      President

    
      
        
        

      

      
        F-3

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “1”

    

    Description
      of Landlord Work - Architectural Space Plan

     

    Refer
      to Exhibit E of Lease

    

    

     

     

    
 

    
      
        
        

      

      
        F-4

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “2”

    

    

    Approved
      Plans and Specifications, including engineered drawings

     

    Forthcoming

     

     

     

    

    
      
        
        

      

      
        F-5

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “G”

    

    Addendum
      to Lease

    

    

    THIS
      ADDENDUM ATTACHED TO AND MADE A PART OF THIS OFFICE LEASE DATED 19th day of
      June, 2006, BY AND BETWEEN Clairbridge Companies, LLC a Colorado limited
      liability Company (“CLAIRBRIDGE LLC”), as the “Landlord” and Solera National
      Bancorp, Inc.,
      a
      Delaware corporation (“Tenant”),CONCERNING THE PREMISES KNOWN AS 5801 W. Alameda
      Avenue, Suite “B,” Lakewood, Colorado in the Clairbridge Office building. In the
      event that any conflict between the terms and provisions of the Lease and the
      terms and conditions of this Addendum the terms and provisions of this Addendum
      shall control.

    

    15.
      Options to Renew: As long as the Lease is in full force and effect and Tenant
      either at the time of the exercise of the Option or at the following described
      Option period(s): (i) is occupying and doing business from the Premises at
      the
      time the election is exercised; and (ii) is not in default under the Lease
      at
      the time of the election; and (iii) has maintained a history of payments within
      the applicable grace period, if any,
      provided under the Lease;

    

    Tenant
      is
      hereby granted the option to renew this Lease for 2 successive renewal terms(s),
      commencing upon the day next following the expiration of the then current lease
      term. Each option period shall be for a term of 5 years (the “Extension
      Period”). The terms of this Lease during the Option Periods shall be the same as
      during the current Lease period, except as provided below. Tenant shall deliver
      written notice to Landlord of Tenant’s desire to extend the Lease term as
      provided herein no later than 180 days prior to the termination date of each
      lease term.

    

    The
      annual Basic Rent as defined in the Lease during each Extension Period shall
      be
      at the then prevailing market rate for comparable space.
      

    

    Upon
      receipt of such notice, Landlord and Tenant shall have 30 days to agree on
      the
      market rate for annual Basic Rent to be charged during the extension
      period.

    

    If
      the
      parties are unable to reach agreement within 30 days after Landlord receives
      Tenant's Notice, Landlord and Tenant shall, within 40 days after the date
      Landlord receives Tenant's Notice, each appoint a broker ("Landlord's Rent
      Broker" and "Tenant's Rent Broker," respectively) who is knowledgeable in
      commercial property values in the area in which the Premises are located and
      is
      not an employee or affiliate of either Landlord or Tenant. Landlord's Rent
      Broker and Tenant's Rent Broker shall attempt to agree upon the market rental
      rate applicable to the Premises. If Landlord's Rent Broker and Tenant's Rent
      Broker are unable to reach agreement within 70 days after the date of Landlord's
      receipt of Tenant's Notice, they shall, within 80 days after the date of
      Landlord's receipt of Tenant's Notice, appoint an additional Rent Broker
      ("Additional Rent Broker") with the same qualifications and, within 15 days
      after such appointment, each of Landlord's Rent Broker and Tenant's Rent Broker
      will submit their respective written reports of the market rental rate
      applicable to the Premises to the Additional Rent Broker. Within 10 days
      thereafter, the Additional Rent Broker shall determine annual Basic Rent for
      the
      extended term, which will be the rate proposed by Landlord's Rent Broker or
      the
      rate proposed by Tenant's Rent Broker. If, within 80 days after Landlord' s
      receipt of Tenant's Notice, Landlord's Rent Broker and Tenant's Rent Broker
      do
      not agree upon and designate the Additional Rent Broker, either Landlord or
      Tenant may request that the local office of the American Arbitration Association
      (or, if such organization or its successor shall no longer be in existence,
      a
      recognized national arbitration association mutually satisfactory to both
      parties), designate the Additional Rent Broker, and the Additional Rent Broker
      so designated shall, for all purposes, have the same standing and powers as
      though the Additional Rent Broker had been initially appointed by Landlord's
      Rent Broker and Tenant's Rent Broker. Landlord and Tenant shall each bear the
      cost of its Rent Broker and shall share equally the cost of the Additional
      Rent
      Broker.

    

    
      
        
        

      

      
        G-1

        
          

        

      

      
        
        

      

    

    Upon
      determination of the new annual Basic Rent, Landlord and Tenant will execute
      an
      amendment to this Lease so confirming the extension of the Lease and the new
      Basic Rent as soon as practicable.

    

    16.
      Tenant Improvements: Landlord has agreed to deliver the Premises to Tenant
      according to the details set forth on the Space Plan depicted on Exhibit E,
      defining the Landlords “Scope of Work”. Landlord and Tenant agree that the
      Exhibit E contains both Building Standard Improvements and Upgrades. Landlord
      and Tenant will cooperate to identify the Building Standard Improvements and
      Upgrades no later than July 7, 2006 and amend this Exhibit G as
      contemplated herein.

    

    Landlord
      further agrees that in consideration for Tenant entering into this Lease,
      Landlord shall provide the following Building Standard Improvements
      (collectively the “Building Standard Improvements”) at no cost to the
      Tenant:

    

      Doors
        and Hardware

      3'0"
        x
        7'0" solid core oak or birch, stained 

      Latch
        set
        (DRG to provide spec), lock optional 

      Painted
        knock down hollow metal door frames

      

      Finishes

      Traditional
        metal stud partitions to grid, acoustical insulation (25 ga. Studs, 24" on
        center) 3 5/8" sheetrock

      Level
        4
        drywall finish 

      Reception
        desk as shown in Suite A, laminate transaction top

      Painted,
        max of two accent colors approved by landlord, base color

      Broadloom,
        glue-down carpet, spec provided by DRG

      4"
        rubber
        base

      VCT
        in
        breakroom

      2'x4'
        acoustical ceiling tile

      Ceramic
        tile at bathroom wet wall/s

      

      Specialities

      One
        ea.
        water closet (Men and Women)

      

      Furnishings

      Vertical
        blinds as shown in Suite A on all exterior windows

      

      Mechanical/Plumbinq

      HVAC
        to
        similar to Suite A 

      Exhaust
        fan in restrooms 

      Lavatories
        in restrooms- one each

      

      Electrical

      2'x4'
        deep cell parabolic fixtures, troffer layout one per 80 square feet

      

      2
        standard duplex outlets per room (color and type of covers and devises to
        match
        suite A) 

      1
        data
        stub/room

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Tenant
      has requested and Landlord has agreed to construct certain upgrades
      (collectively the “Upgrades”) to the Premises that are in addition to the
      Building Standard Improvements provided by Landlord listed above. Landlord
      has
      agreed to amortize the cost of the Upgrades over the initial term of the Lease
      together with the Landlords cost of funds at 10% per annum. Tenant has agreed
      to
      pay for the cost of these Upgrades in the form of Additional Rent as provided
      in
      article 4.5 of the Lease, upon Tenant's approval of such Upgrades in connection
      with engineering drawings and final pricing.

    

    Landlord
      agrees to provide Tenant with an initial estimate of Upgrade costs for the
      prior
      to execution of the Lease and the final pricing prior commencement of
      construction of any of the improvements. Tenant acknowledges that Landlord
      shall
      not be bound by any pricing until such time as the final construction drawings
      have been issued by Tenant’s Architect and Landlord has had reasonable time to
      obtain competitive bids from its subcontractors for the proposed work. Landlord
      acknowledges and agrees not to incorporate any of the Upgrades into the Scope
      of
      work until Tenant has reviewed the final pricing for each Upgrade and approved
      the same in writing.

    

    The
      Upgrades incorporated into the Space Plan attached as Exhibit E are as
      follows:

    

      UPGRADES

      Millwork,
        shelving and casework

      Receptionist
        desk extension beyond what is shown in Suite A 

      Conference
        room/interior glazing

      24"
        wide,
        frameless Sidelites on interior private office doors (4- BY LANDLORD)

      Level
        5
        drywall finish (proposed, difference between 5 and 4) Partition
        penetration beyond grid ceiling

      All
        drywall ceilings and soffits, except restrooms

      2'x2'
        acoustical ceiling tile

      Carpet
        border

      Carpet
        base (proposed)

      Carpet
        pad

      Ceramic
        tile (proposed)

      Granite
        transaction top at receptionist desk

      Shelving
        (proposed)

      Casework
        (proposed)

      Exhaust
        fan in break room

      Sink/plumbing
        in break room

      Difference
        between building standard 2'x4' deep cell parabolic and incandescent lighting
        

      HVAC
        temperature control system

      

      BY
        TENANT 

      Data/phone
        cabling

    

     

    Upon
      the
      completion of the construction, Landlord and Tenant will approve the schedule
      of
      Additional Rent attributed to the cost of construction of the Upgrades as
      approved by Tenant above.

    

    
      
        
        

      

      
        G-2

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF the parties hereto have caused this Exhibit G to be
      executed the day and year first above written.

    

    TENANT:

    

    SOLERA
      NATIONAL BANCORP, Inc., a Delaware

    corporation

    

    

    By: 
      /s/ Robert J. Fenton

    Name: 
      Robert J. Fenton

    Title: 
      V.P., Secretary & Treasurer

    

    

    

    LANDLORD:

    

    CLAIRBRIDGE
      COMPANIES, LLC a Colorado limited liability Company 

    

    

    By: 
      /s/ Diedra Garcia

    Name:
      Diedra Garcia

    Title:
      President

    

    
      
        
        

      

      
        G-3EMPLOYMENT
      AGREEMENT

     

    This
      Employment Agreement (the “Agreement”) is entered into by and between Eternal
      Energy Corp., a Nevada corporation (the “Company”), and Bradley M. Colby
      (“Executive”), effective as of November 7, 2005. The parties hereto agree as
      follows:

     

    1.           Employment
      and Duties.
      The
      Company shall employ Executive in the position of President, Chief Executive
      Officer (“CEO”), Treasurer, Chief Financial Officer (“CFO”) and Secretary of the
      Company (or such other senior executive position as may be assigned to him
      by
      the Company’s Board of Directors). Executive shall report directly to the board
      of directors (the “Board”) of the Company (or such other persons designated by
      the Board) and shall perform all duties and obligations of President, CEO,
      Treasurer, CFO and Secretary (or such other senior executive duties assigned
      to
      Executive from time to time by the Board). Executive shall devote at least
      fifty
      percent (50%), on average, of each normal forty hour work week exclusively
      to
      the business and interests of the Company and to the performance of his duties
      and obligations under this Agreement, unless otherwise provided by this
      Agreement. However, on or before May 7th,
      2006,
      the parties agree to meet and by mutual agreement determine if the time
      Executive is required to devote to the business interests of the Company and
      to
      the performance of his duties and obligations under this Agreement is adequate
      to discharge his duties hereunder in an appropriate manner and, if not, to
      re-determine, by mutual agreement, the amount of time Executive shall thereafter
      be required on average to devote exclusively to the performance of services
      for
      and on behalf of the Company.

     

    2.           Term
      of Agreement.
      The
      term of this Agreement shall commence on November 7, 2005 and shall continue
      through and including November 6, 2007 (the “Term”), subject to the provisions
      of Section 5. Notwithstanding the foregoing, the provisions of Sections 6 and
      11
      of the Agreement shall survive, and continue in full force and effect, after
      any
      termination or expiration of this Agreement, irrespective of the reason for
      the
      termination or any claim that the termination was wrongful or
      illegal.

     

    3.           Compensation
      and Other Benefits.
      The
      Company shall provide the following compensation and other benefits to Executive
      during the Term in consideration of Executive’s performance of all of his
      obligations under this Agreement:

     

    3.1           Base
      Salary.
      Subject
      to the provisions of Section 5, the Company shall pay to Executive an annual
      base salary (the “Base Salary”) of $60,000.00, less applicable withholdings,
      during the Term of this Agreement. Notwithstanding the foregoing, however,
      if
      the parties mutually agree to increase the amount of time Executive shall be
      required on average to devote exclusively to the performance of services for
      and
      on behalf of the Company pursuant to the terms of Section 1 above, the parties
      agree to increase Executive’s Base Salary to a level appropriate to adequately
      compensate him for the additional services to be rendered by him, as they shall
      mutually agree upon. The Base Salary shall be payable in accordance with the
      Company’s ordinary payroll practices in effect during the Term.

     

    3.2           Signing
      Bonus.
      Upon
      execution of this Agreement by both parties, Executive shall be paid, directly
      or on his behalf, a signing bonus of $125,000, less applicable withholdings
      (the
“Signing Bonus”). 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    3.3           Stock
      Options.
      On the
      first day of the Term, the Board of Directors or Compensation Committee will
      grant to Executive an initial stock option grant (“Stock Options”) to purchase
      1,443,800 shares of the Company’s common stock at a per share exercise price of
      $1.00. The Stock Options will vest as set forth in a Stock Option Agreement,
      which will provide that the options become exercisable in an equal amount every
      six (6) months over a period of three years, with the first one-sixth (1/6)
      becoming exercisable six (6) months from the effective date of this Agreement.
      If the Company terminates Executive’s employment without Cause, Executive’s
      severance benefits (including vesting of options) will be governed by Section
      5.1.2 of this Agreement. If the Company terminates Executive’s employment for
“Cause” as defined in Section 5.1.1, then all of Executive’s unvested options
      shall expire and become unexercisable as of the date of such “for Cause”
termination.

     

    3.4           Fringe
      Benefits.
      As
      additional compensation under this Agreement, Executive shall be entitled to
      receive the following benefits (the “Fringe Benefits”):

     

    3.4.1           Employee
      Benefit Plans.
      During
      the Term, the Company shall allow Executive to participate in such group
      medical, health, pension, welfare, and insurance plans (the “Employee Benefit
      Plans”) maintained by the Company from time to time for the general benefit of
      its executive employees, as such Employee Benefit Plans may be modified from
      time to time in the Company’s sole and absolute discretion.

     

    3.4.2           Other
      Benefits.
      The
      Company shall provide Executive with all other benefits and perquisites as
      are
      made generally available to the Company’s executive employees under the
      Company’s Employee Handbook, as such Employee Handbook may be modified from time
      to time in the Company’s sole and absolute discretion.

     

    3.4.3           Vacation;
      Sick Leave and Holidays.
      Executive shall be entitled to such vacation time, sick leave and paid holidays
      as are generally made available to the Company’s executive employees under the
      Company’s Employee Handbook, as such Employee Handbook may be modified from time
      to time in the Company’s sole and absolute discretion.

     

    3.4.4           Reimbursement
      of Business Expenses.
      The
      Company shall reimburse Executive for all reasonable travel, entertainment
      and
      other expenses incurred by Executive in connection with the performance of
      his
      duties under this Agreement, upon submission by Executive to Company of
      reasonable documentation pertaining to such expenses. 

     

    3.4.5           Rent.
      The
      Company shall pay Westport Petroleum, Inc. (“Westport”) the sum of one thousand
      dollars ($1,000.00) per month as rent for using a portion of Westport’s leased
      space for the conduct of Company Business (as defined in Section 6.1 below)
      for
      so long as the Company occupies Westport’s facilities.

     

    3.5           Deferred
      Compensation.
      Any
      deferred compensation (within the meaning of Section 409A of the Internal
      Revenue Code) payable under this Agreement on account of Executive’s separation
      from service shall not commence prior to six months following such separation
      if
      Executive is a key employee (within the meaning of Section 409A). Provided,
      that
      in determining whether Executive is a key employee, any compensation realized
      on
      account of the exercise of a stock option or a disqualifying disposition of
      stock acquired through exercise of an incentive stock option shall be
      disregarded.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    4.           Repurchase
      Right of the Company; Transfer Limitations.

     

    4.1           Repurchase
      Right.
      In the
      event Executive’s employment is terminated for any reason other than reasons
      described in Sections 5.1.2 and 5.2 below or as a result of the expiration
      of
      the Term, the Company shall, upon the date of such termination, have an
      irrevocable, exclusive right to repurchase (the “Repurchase Right”) any of the
      3,250,000 shares of common stock (the “Restricted Shares”), including 2,500,000
      shares held of record by Executive (the “Executive Shares”) and 750,000 shares
      held of record by Executive’s immediate family and beneficially by Executive
      (the “Family Shares”), which have not yet been released from the Repurchase
      Right, at a price per share equal to the lesser of (x) the fair market value
      of
      the shares at the time the Repurchase Right is exercised, as determined by
      the
      Company’s board of directors, and (y) the original purchase price of the
      Restricted Shares, which original purchase price was $75,000. Twenty-five
      percent of the Executive Shares shall be released from the Repurchase Right
      on
      the date that is six months from the effective date of this Agreement, and
      an
      additional twenty-five percent shall be released at the end of each successive
      six months from the first release date, such that all 2,500,000 shares shall
      be
      released from the Repurchase Right on the two-year anniversary of this
      Agreement. One hundred percent of the Family Shares shall be released from
      the
      Repurchase Right on the date that is the one-year anniversary of the effective
      date of this Agreement. Once Executive Shares and Family Shares have been
      released from the Repurchase Right as provided by this Subsection, such shares
      shall not thereafter be subject to the Repurchase Right set forth herein or
      be
      subject to forfeiture under the terms of this Agreement.

     

    4.2           Transfer
      Limitations.
      In
      addition to any restrictions of transfer imposed on the Restricted Shares by
      applicable federal and state securities laws, the parties hereto hereby agree
      to
      the following limitations with respect to the sale and transfer of the
      Restricted Shares: (i) Executive (and his beneficiaries or assigns, as
      applicable) shall not sell any of the Executive Shares during the first year
      of
      this Agreement; and (ii) during each three-month period beginning on the
      one-year anniversary of this Agreement, Executive (and his beneficiaries or
      assigns, as applicable) may sell only that number of shares that is equal to
      twenty-five percent of the total number of the Executive Shares if such number
      has been released from the Repurchase Right at the beginning of each such
      three-month period. For purposes of clause (ii) above, the twenty-five percent
      limitation shall apply separately to the Family Shares, for which Executive
      shall not sell or cause a sale except as in accordance with the limitation
      described in clause (ii). At the two-year anniversary of the effective date
      of
      this Agreement, the foregoing limitation shall terminate.

     

    5.           Termination
      or Expiration of Agreement.

     

    5.1           Termination
      at Company’s Election.
      The
      Company may terminate Executive’s employment at any time during the Term, for
      any reason or no reason, with or without Cause (as hereinafter defined), and
      with or without notice, subject to provisions of Sections 5.1.1 and
      5.1.2.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    5.1.1           Termination
      for Cause.
      If
      Executive’s employment is terminated for Cause (as defined below), Executive
      shall be entitled to receive only the following: (i) payment of Executive’s Base
      Salary through and including the date of termination; (ii) payment for all
      accrued and unused vacation time as of the date of termination; and (iii)
      reimbursement of business expenses incurred prior to the date of termination.
      Except as expressly set forth in this Section 5.1.1, Executive shall not be
      entitled to receive any Base Salary or Fringe Benefits in the event Executive’s
      employment is terminated for Cause, except that Executive may continue to
      participate in the Employee Benefit Plans to the extent permitted by and in
      accordance with the terms of those plans or as otherwise required by law. As
      used in this Agreement, Cause shall be defined as: (a) a material breach by
      Executive of any term of this Agreement; (b) an intentional refusal or failure
      to follow the lawful and reasonable instructions of the Board of Directors
      or an
      individual to whom Executive reports (as appropriate); (c) a willful or habitual
      neglect of duties; (d) misconduct on the part of Executive that is materially
      injurious to the Company, including without limitation misappropriation of
      trade
      secrets, fraud, or embezzlement; or (e) Executive’s conviction for fraud, theft
      or a felony involving moral turpitude; and, in the case of clauses (a) through
      (c), Executive fails to cure such breach within thirty (30) days of Executive’s
      receipt of written notice from the Company.

     

    5.1.2           Termination
      Without Cause.
      If
      Executive is terminated by the Company without Cause or if Executive’s
      employment is terminated for “good reason” (as defined below) Executive shall
      receive: (i) payment of Executive’s Base Salary through and including the date
      of termination; (ii) payment for all accrued and unused vacation time existing
      as of the date of termination; and (iii) reimbursement of business expenses
      incurred prior to the date of termination. In addition, Executive shall be
      eligible to receive the following additional benefits if Executive’s employment
      is terminated under this Section 5.1.2 on the condition that Executive signs
      a
      general release of all claims in a form approved by the Company: (iv) a
      severance payment in an amount equal to one (1) year of Executive’s Base Salary,
      less applicable withholdings; (v) immediate vesting in full of any unvested
      options issued to Executive; and (vi) the immediate termination of the
      Repurchase Right. 

     

    For
      purposes of this Agreement, “good reason” means without Executive’s prior
      written consent and in the absence of any circumstance that constitutes Cause:
      (a) the regular assignment to Executive of duties materially inconsistent with
      the position and status of Executive; (b) a material reduction in the nature,
      status or prestige of Executive’s responsibilities or a materially detrimental
change in Executive’s title or reporting level, excluding for this purpose an
      isolated, insubstantial or inadvertent action by the Company which is remedied
      by the Company promptly after the Company’s receipt of written notice from
      Executive; or (c) a reduction by the Company of Executive’s annual Base Salary
      as of the date of this Agreement or as the same may be increased from time
      to
      time.

     

    5.2           Termination
      upon Death or Permanent Disability.
      This
      Agreement will terminate automatically on Executive’s death or if Executive
      becomes Permanently Disabled (as defined below). In the event of such
      termination, Executive, or his beneficiary or estate, shall be entitled to
      receive such amounts of the Base Salary and Fringe Benefits as would have been
      payable to Executive under a termination without Cause under Section 5.1.2
      as of
      the date of death or on which the Company determines in its reasonable
      discretion that Executive has become Permanently Disabled. In addition, as
      of
      the date of the termination of Executive’s employment pursuant to this Section
      5.2, Executive shall be immediately vested in full as to any unvested options
      issued to Executive. As used in this Agreement, “Permanently Disabled” shall
      mean the incapacity of Executive due to illness, accident, or any other reason
      to perform his duties for a period of 90 days, whether or not consecutive,
      during any 12-month period of the Term, all as determined by the Company in
      its
      reasonable discretion. All determinations as to the date and extent of
      incapacity of Executive shall be made by the Company’s Board of Directors, upon
      the basis of such evidence, including independent medical reports and data,
      as
      the Board of Directors in its discretion deems necessary and desirable. All
      such
      determinations of the Board of Directors shall be final.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    5.3           Termination
      at Executive’s Election. Executive
      may resign from employment with the Company prior to the expiration of the
      Term
      for any reason by providing written notice to the Company at least 30 days
      prior
      to the date selected for resignation. If Executive resigns from employment
      before expiration of the Term under any circumstances, other than for “good
      reason” as defined above, Executive shall be entitled to receive only the
      following: (i) payment of Executive’s Base Salary through and including the date
      of resignation; (ii) payment for all accrued and unused vacation time existing
      as of the date of resignation, which will be paid at a rate calculated in
      accordance with Executive’s Base Salary at the time of resignation; and (iii)
      reimbursement of business expenses incurred prior to the date of resignation.
      Except as expressly set forth in this Section 5.3, Executive shall not be
      entitled to receive any Base Salary or Fringe Benefits in the event Executive
      resigns from employment before expiration of the Term, except that Executive
      may
      continue to participate in the Employee Benefit Plans to the extent permitted
      by
      and in accordance with the terms thereof or as otherwise required by law and
      except as otherwise provided by this Agreement.

     

    5.4           Termination
      on Expiration of Term. If
      this
      Agreement is terminated on the expiration of the Term in accordance with Section
      2 above, Executive shall receive: (i) payment of Executive’s Base Salary through
      and including the date of termination; (ii) payment for all accrued and unused
      vacation time existing as of the date of termination; and (iii) reimbursement
      of
      business expenses and payment to Westport of rent pursuant to Section 3.4.5
      incurred prior to the date of termination. Executive shall be entitled to
      exercise all vested options held by Executive as of the date of termination
      pursuant to the terms of the Executive’s agreement(s) with the
      Company.

     

    6.           Non-competition;
      Secrecy.

     

    6.1           Assistance
      to Competitors.
      During
      the Term, Executive shall not, except as provided below, own a material interest
      in (other than up to two percent of the voting securities of a publicly traded
      corporation), render financial assistance to, or offer personal services to
      (whether for payment or otherwise), any entity or individual that competes
      with
      the Company in the Company Business or any entity or individual that the Company
      has reviewed as a business or investment opportunity in any given three-month
      period. “Company Business” shall mean the Company’s oil and gas business as it
      is conducted or proposed to be conducted on the effective date of this
      Agreement. Notwithstanding anything to the contrary set forth in this Agreement,
      Executive shall have the right to own a material interest in, render financial
      assistance to and/or offer personal services to any entity or individual in
      connection with a project or opportunity in which: (i) such entity or individual
      produces, or proposes to produce, hydrocarbons through surface or subsurface
      gas/water separation and disposal; or (ii) the Company has failed or declined
      to
      exercise its right of first refusal described below. Executive agrees that
      he
      will, in writing, offer the Company a right of first refusal to pursue all
      opportunities which he desires to pursue involving the exploration, development
      and production of hydrocarbons which do not involve, or are proposed to involve,
      surface or subsurface gas/water separation and disposal. The parties acknowledge
      and agree that Executive has no obligation to offer opportunities to the Company
      which involve, or which are proposed to involve, surface or subsurface gas/water
      separation and disposal. This right of first refusal shall include such
      information in Executive’s possession as shall be reasonably necessary to
      evaluate the economic viability and risks of pursuing each such opportunity.
      Company shall exercise its right of first refusal to pursue such an opportunity
      by giving Executive written notice of its exercise within ten business days
      of
      its receipt of Executive’s written offer. 

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    6.2           Confidential
      Information.
      Executive acknowledges and agrees that the Company is engaged in business
      activities in which it is or may be crucial to develop and retain proprietary,
      trade secret, or confidential information for the benefit of the Company
      (collectively, “Confidential Information”). Accordingly, Executive shall not at
      any time during or after the Term, either directly or indirectly, (i) divulge
      or
      convey any Confidential Information to any entity or individual, except as
      may
      be expressly authorized in writing by the Company or as required in the course
      of Executive’s performance of his duties hereunder, or (ii) use any Confidential
      Information for Executive’s own benefit or the benefit of any entity or
      individual except the Company. The Confidential Information to which Executive
      may have access may include, but is not limited to, matters of a technical
      or
      intellectual nature such as inventions, designs, improvements, processes of
      discovery, techniques, methods, ideas, discoveries, developments, know-how,
      formulae, compounds, compositions, specifications, trade secrets, specialized
      knowledge, or matters of a business nature such as information about costs
      and
      profits, records, customer lists, customer data or sales data.

     

    6.3           Ownership
      of Ideas.
      The
      Company shall own, and Executive hereby transfers and assigns to the Company,
      all rights, of every kind and character throughout the world, in perpetuity,
      in
      and to any material or ideas, and all results and proceeds of the performance
      of
      Executive’s services hereunder, conceived of or produced during the Term by
      Executive in the performance of his services hereunder. The parties acknowledge
      and agree, however, that such transfer and assignment shall not apply to, or
      attach in and to, any material or ideas which were not conceived or produced
      in
      the performance of Executive’s services hereunder. Executive shall execute and
      deliver to the Company such assignments, certificates of authorship, or other
      instruments as the Company may require from time to time to evidence ownership
      of such material, ideas, the results and proceeds of the performance of
      Executive’s services under this Agreement. Executive’s agreement to assign to
      the Company any of his rights as set forth in this Section 6.3 shall not apply
      to any invention for which no equipment, supplies, facility or trade secret
      information of the Company was used and that was developed entirely upon
      Executive’s own time, and (i) that does not result from any work performed by
      Executive for the Company or (ii) that relates to the exploitation of commercial
      oil and gas opportunities which Executive is permitted to pursue pursuant to
      Section 6.1 above. 

     

    6.4           Company
      Property.
      All
      records, papers, documents, materials, and electronically stored data kept,
      made, or received by Executive in the performance of his duties while employed
      by the Company, or generated for, in the course of, or in connection with the
      business of the Company (other than opportunities which Executive is permitted
      to pursue pursuant to Section 6.1 above), whether or not containing Confidential
      Information, shall be and remain the exclusive property of the Company
      (collectively referred to as “Company Property”) at all times during and after
      Executive’s employment with the Company, without regard to how Executive came
      into possession of any Company Property or whether Executive played any role
      in
      creating any Company Property. Executive shall not destroy any Company Property
      or remove any Company Property from the Company’s premises, whether during or
      after employment at the Company, except as expressly directed for the purpose
      of
      performing services on behalf of the Company. Upon the termination of
      Executive’s employment with the Company at any time and for any reason, or upon
      the Company’s request at any time and for any reason, Executive shall promptly
      return all Company Property to the Company, without keeping a copy of any such
      Company Property for himself or any other entity or individual.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    6.5           Interference
      with Employees and Clients.

     

    6.5.1           Not
      Hire Away.
      For so
      long as Executive is employed by the Company in an executive role, and for
      a
      one-year period thereafter, Executive shall not, directly or indirectly, whether
      for his own benefit or for the benefit of any other entity or individual, (i)
      solicit, encourage, or in any way influence any person employed by, or engaged
      to render services on behalf of, the Company, to cease performing services
      for
      the Company, or to engage in any activity contrary to or conflicting with the
      interests of the Company; (ii) hire away any person employed by, or engaged
      to
      render services on behalf of, the Company; or (iii) otherwise interfere to
      the
      Company’s detriment in any way in the Company’s relationship with any person who
      is employed by, or engaged to render services on behalf of, the
      Company.

     

    6.5.2           Non-Solicitation
      of Clients.
      For so
      long as Executive is employed by the Company in an executive role, and for
      a
      one-year period thereafter, Executive shall not, whether for his own benefit
      or
      for the benefit of any other entity or individual, take any action which would
      cause any customer or client of the Company (i) who became known to Executive
      by
      virtue of Executive’s employment with the Company during the Term, or (ii) whose
      status as a client or customer of the Company during the Term can be determined
      by reference to records maintained by the Company to curtail or terminate its
      business relationship with the Company. 

     

    6.6           Injunctive
      Relief.
      Executive and the Company acknowledge and agree that (i) Executive’s breach of
      his obligations under this Section 6 would cause the Company irreparable harm
      and that monetary damages alone would not be an adequate remedy for any such
      breach; and, therefore, (ii) if Executive breaches this Section 6, the Company
      shall be entitled to obtain injunctive relief (and any other form of equitable
      relief), as well as any other remedies (including monetary damages) to which
      the
      Company is entitled as a consequence of such breach or otherwise. 

     

    7.           Representation
      and Warranties.
      Executive represents and warrants to the Company that Executive is under no
      contractual or other restriction or obligation that is materially inconsistent
      with the execution of this Agreement, the performance of his duties hereunder,
      or the rights of the Company hereunder, including, without limitation, any
      development agreement, non-competition agreement or confidentiality agreement
      previously entered into by Executive.

    
      
        
        

      

      
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    8.           Severability.
      In the
      event that any provision of this Agreement should be held to be void, voidable,
      unlawful or for any reason unenforceable, the remaining provisions or portions
      of this Agreement shall remain in full force and effect.

     

    9.           Amendment
      and Waiver.
      No
      provision of this Agreement can be modified, amended, supplemented or waived
      in
      any manner except by an instrument in writing signed by both Executive
      and the
      Board
      of Directors of the Company. The waiver by either party of compliance with
      any
      provision of this Agreement by the other party shall not operate or be construed
      as a waiver of any other provision of this Agreement, or of any subsequent
      breach by such party of any provision of this Agreement.

     

    10.           Applicable
      Law.
      This
      Agreement, Executive’s employment relationship with the Company, and any and all
      matters or claims arising out of or related to this Agreement or Executive’s
      employment relationship with the Company, shall be governed by, and construed
      in
      accordance with, the laws of the State of Colorado, regardless of the choice
      of
      law provisions of any other jurisdiction.

     

    11.           Arbitration.

     

    11.1           Exclusive
      Remedy.
      Except
      as set forth in Section 11.3, arbitration shall be the sole and exclusive remedy
      for any dispute, claim, or controversy of any kind or nature (a “Claim”) arising
      out of, related to, or connected with this Agreement, Executive’s employment
      relationship with the Company, or the termination of Executive’s employment
      relationship with the Company, including any Claim against any parent,
      subsidiary, or affiliated entity of the Company, or any director, officer,
      employee, or agent of the Company or of any such parent, subsidiary, or
      affiliated entity. It also includes any claim against the Executive by the
      Company, or any parent, subsidiary or affiliated entity of the
      Company.

     

    11.2           Claims
      Subject to Arbitration.
      Excepting only claims excluded in Section 11.3 below, this Agreement
      specifically includes (without limitation) all claims under or relating to
      any
      federal, state or local law or regulation prohibiting discrimination, harassment
      or retaliation based on race, color, religion, national origin, sex, age,
      disability or any other condition or characteristic protected by law; demotion,
      discipline, termination or other adverse action in violation of any contract,
      law or public policy; entitlement to wages or other economic compensation;
      any
      Claim for personal, emotional, physical, economic or other injury; and any
      Claim
      for business torts or misappropriation of confidential information or trade
      secrets.

     

    11.3           Claims
      Not Subject to Arbitration.
      This
      Section 11 does not preclude either party from making an application to a court
      of competent jurisdiction for provisional remedies (e.g., temporary restraining
      order or preliminary injunction), subject to Colorado Revised Statutes. This
      Agreement also does not apply to any claims by Executive: (i) for workers’
compensation benefits; (ii) for unemployment insurance benefits; (iii) under
      a
      benefit plan where the plan specifies a separate arbitration procedure; (iv)
      filed with an administrative agency which are not legally subject to arbitration
      under this Agreement; or (v) which are otherwise expressly prohibited by law
      from being subject to arbitration under this Agreement. 

    
      
        
        

      

      
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    11.4           Procedure.
      The
      arbitration shall be conducted in the City and County of Denver. Any Claim
      submitted to arbitration shall be decided by a single, neutral arbitrator (the
      “Arbitrator”). The parties to the arbitration shall mutually select the
      Arbitrator not later than 45 days after service of the demand for arbitration.
      If the parties for any reason do not mutually select the Arbitrator within
      the
      45 day period, then any party may apply to any court of competent jurisdiction
      to appoint a retired judge as the Arbitrator. The arbitration shall be conducted
      in accordance with the Colorado Revised Statutes, except as modified by this
      Agreement. The Arbitrator shall apply the substantive federal, state, or local
      law and statute of limitations governing any Claim submitted to arbitration.
      In
      ruling on any Claim submitted to arbitration, the Arbitrator shall have the
      authority to award only such remedies or forms of relief as are provided for
      under the substantive law governing such Claim. The Arbitrator shall issue
      a
      written decision revealing the essential findings and conclusions on which
      the
      decision is based. Judgment on the Arbitrator’s decision may be entered in any
      court of competent jurisdiction.

     

    11.5           Costs.
      The
      parties shall be responsible for their own attorneys’ fees and costs, except
      that the Arbitrator shall have the authority to award attorneys’ fees and costs
      to the prevailing party in accordance with the applicable law governing the
      dispute.

     

    11.6           Interpretation
      of Arbitrability.
      The
      Arbitrator, and not any federal or state court, shall have the exclusive
      authority to resolve any issue relating to the interpretation, formation or
      enforceability of this Section 11, or any issue relating to whether a Claim
      is
      subject to arbitration under this Section 11, except that any party may bring
      an
      action in any court of competent jurisdiction to compel arbitration in
      accordance with the terms of this Section 11.

     

    12.           Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties relating to
      the
      subject matter of this Agreement and supersedes all prior and contemporaneous
      negotiations, understandings, or agreements between the parties, whether oral
      or
      written, expressed or implied.

     

    13.           Counterparts.
      This
      Agreement may be executed by the parties in counterparts, each of which shall
      be
      deemed to be an original, but all such counterparts shall together constitute
      one and the same instrument.

     

    14.           Headings.
      The
      headings of sections and subsections of this Agreement are included solely
      for
      convenience of reference and shall not control the meaning or interpretation
      of
      any of the provisions of this Agreement.

     

    15.           Notices.
      Any
      notice required or permitted to be given under this Agreement shall be
      sufficient if in writing, and if sent by certified or registered mail or
      personally delivered to Executive at 26 Wedge Way, Littleton, Colorado 80123
      or
      to the Company at 2120 West Littleton Blvd., Suite 300, Littleton, Colorado
      80120.

    
      
        
        

      

      
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              BRADLEY
                M. COLBY

            	
              ETERNAL
                ENERGY CORP.

            
	 	 
	 	 
	
                
                /s/ Bradley M. Colby            

            	
              By: 
                /s/ John
                Anderson              

               

              Its: 
                Director                     
                

            

    

    

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        10

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