Document:

AMENDMENT
      TO MOBILE GATEWAY AGREEMENT

    FOR
      ADVANCE PAYMENTS

     

    THIS
      AMENDMENT (the "Amendment") to the Mobile Gateway Agreement (defined below)
      is
      entered into as of the 1st day of July, 2005 (the "Amendment Effective Date")
      by
      and between Mobile Messenger Australia Pty Ltd. ("Mobile Messenger") and New
      Motion ("Customer").

     

    WHEREAS,
      Mobile Messenger and Customer are parties to a Mobile Gateway Agreement dated
      19th April 2005 (the "Mobile Gateway Agreement") pursuant to which Mobile
      Messenger provides certain services to Customer; and

     

    WHEREAS,
      pursuant to the terms of the Mobile Gateway Agreement Mobile Messenger
      currently pays to Customer a portion of the revenue Mobile Messenger
receives
      from the applicable carrier for the sale of Customer content ("Customer Revenue
      Share");

     

    WHEREAS,
      pursuant to the terms of the Mobile Gateway Agreement Mobile Messenger is only
      obligated to pay Customer the Customer Revenue Share subsequent to when
      (and
      if) Mobile Messenger actually receives payment from the applicable carrier
      for
      the
      sale of such Customer content;

     

    WHEREAS,
      Mobile Messenger and Customer desire to modify the payment terms
      of
      the Mobile Gateway Agreement effective as of the Amendment Effective Date
whereby
      Mobile Messenger shall advance to Customer a portion of the Customer
Revenue
      Share prior to Mobile Messenger's receipt of the revenue from the applicable
      carrier
      for the sale of Customer content as more particularly described
      herein.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants made herein, the Mobile
      Gateway Agreement is amended as set forth below.

     

    1.  Defined
      Terms. All
      terms
      used in this Amendment and not otherwise defined
      herein, shall have the meanings ascribed to such terms in the Mobile Gateway
      Agreement.

     

    2.  Advance.
      Effective
      on the Amendment Effective Date Mobile Messenger shall
      advance to Customer a portion of the monthly fees which Mobile Messenger
anticipates
      collecting from the applicable carriers related to the sale of Customer content
      under the Mobile Gateway Agreement as follows:

     

    (a)
      For
      each calendar month during the Term, subject to the provisions of this
      Amendment, Mobile Messenger shall advance to Customer seventy percent (70%)
      of
      the fees Mobile Messenger would have owed to such Customer under the Mobile
      Gateway Agreement
      had Mobile Messenger received from the applicable carrier the fees attributable
      to the sale of the Customer content for such month (the "Monthly Advance"),
      net
      of
      the Mobile Messenger Fee, as defined below (the "Net Advance"). Such Net
Advance
      shall be paid within the number of days of the end of such applicable month
      as
      specified (and selected by Customer) on Exhibit
      A attached
      hereto.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)
      Customer acknowledges and agrees that the Monthly Advance is an advance
      of the amounts Mobile Messenger may owe to Customer under the Mobile
Gateway
      Agreement. Customer acknowledges and agrees that the Mobile Messenger Fee be
      deducted from the Monthly Advance as consideration for the advance payment.
      Accordingly, Mobile Messenger shall offset amounts owed to Customer under the
      Mobile Gateway Agreement in an amount equal to the Monthly Advance Amount,
      and
      Mobile Messenger shall be entitled to retain all amounts owed to Customer under
      the Mobile Gateway Agreement until such time as it has received actual payment
      from carriers for Customer's content for the applicable month in an amount
      equal
      to the Monthly Advance. The
      remaining balance payable to Customer under the Mobile Gateway Agreement will
      be
      paid
      in accordance with its terms subject to the additional terms set forth
      below.

     

    3.  Mobile
      Messenger Fee. In
      consideration for providing the advance as set forth
      herein, Mobile Messenger shall retain, as a fee, the percentage of the aggregate
      Monthly
      Advance as specified on Exhibit
      A attached
      hereto and such fee shall be retained by Mobile Messenger and deducted from
      the
      Monthly Advance to be made by Mobile Messenger in connection with Section 2
      hereof (the "Mobile Messenger Fee").

     

    4.  Advance
      Election.

     

    (a)  Mobile
      Messenger's Election. Notwithstanding
      the foregoing, Mobile Messenger
      may in its sole discretion at any time upon prior written notice to Customer
      elect
      to
      revert back to (and therefore pay customer in accordance with) the payment
      schedule
      originally specified in the Mobile Gateway Agreement (instead of the advance
      schedule specified in Section 2 of this Amendment) for any and all future
      payments under the
      Mobile Gateway Agreement. Upon termination of the Mobile Gateway Agreement,
      the
      payment schedule shall immediately revert back to the payment schedule
      originally specified in the Mobile Gateway Agreement (instead of the advance
      schedule specified in Section
      2
      of this Amendment) for all future payments due to Customer after the
termination
      date of the Mobile Gateway Agreement.

     

    (b) 
Customer's
      Election. For
      each
      calendar year, Customer may elect to have Monthly Advances made and if so
      elected shall select the number of days after the end of the
      month
      in which such Monthly Advances shall be made as specified on Exhibit
      A provided
      that such election is made in a signed writing received by Mobile Messenger
      at
      least 10 days prior to the commencement of such year. The election made for
      a
      calendar year
      shall automatically be renewed for and applied to each subsequent year unless
      a
signed
      writing rescinding such election is received by Mobile Messenger prior to the
      commencement of the year in accordance with the foregoing. Any election by
      Customer hereunder
      shall apply to each Program in effect during the applicable year(s). Customer
      may
      not
      change its election for the current calendar quarter during such calendar
      quarter.

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (c)
      Days/Fee
      Adjustments. The
      days
      after the end of the month in which such advances shall be made and the fee
      charged by Mobile Messenger for Monthly Advances (as
      specified on Exhibit
      A attached
      hereto) may be modified at any time by Mobile Messenger
      provided that Mobile Messenger notifies Customer in writing of such change
      at
      least
      30 days prior to the beginning of a new year.

     

    5.  Right
      to Offset. The
      parties agree that in the event that any of the applicable
      carrier holds back any fees or levies a charge back or an adjustment to Mobile
      Messenger
      related to such content (collectively, the "Adjustment") and Mobile Messenger
      has paid Customer the Monthly Advance or the Customer Revenue Share for such
      month, then Mobile Messenger may offset against any amounts owed by Mobile
      Messenger to Customer under the Mobile Gateway Agreement by the amount of any
      such Adjustment.

     

    6.  Refund
      of Advanced Monthly Payments. In
      addition, the parties acknowledge
      that if Mobile Messenger has made a payment hereunder and Mobile Messenger
      is subsequently charged an Adjustment by a carrier related to such payment
      and
      the
      amount of such Adjustment is greater than the amounts owed by Mobile
Messenger
      to Customer under the Mobile Gateway Agreement, then Mobile Messenger may in
      its
      sole discretion elect to require Customer to refund the portion on such payment
      which can not be fully offset under Section 5 hereof. Customer shall make such
      refund payment within 30 days of such request.

     

    7.  Payment
      to Customer of Refunded Amount. If
      Mobile
      Messenger has offset
      any amounts (the "Offset Amount") in accordance with Section 5 hereof or
Customer
      has refunded any payments in accordance with Section 6 hereof (the "Refunded
      Amount") and Mobile Messenger subsequently receives the corresponding
payment
      pertaining to such Offset Amount or Refunded Amount from the applicable
Carrier,
      Mobile Messenger shall within 15 days of its receipt of such payment from the
      applicable Carrier pay to Customer the Offset Amount or Refunded Amount, as
      the
      case may be.

     

    8.  Customer
      Service Fee. For
      each
      customer service call, email, or other communication
      received by Mobile Messenger from Customer pertaining to a Program and
      not
      solely related to the Platform (collectively, "Communication(s)"), Customer
      shall pay
      to
      Mobile Messenger the fee set forth under the heading "Customer Service Fee"
      below
      (the "Customer Service Fee"). Mobile Messenger shall send Customer an invoice
      at
      the
      end of each calendar month for the Customer Service Fee incurred by Customer
      in
      such calendar month and such invoice shall be due and payable by the Customer
      within thirty (30) days following the end of such calendar month.

     

    
      	Customer Service Fee:	$7 per each Communication
              

    

     

    Such
      fee
      waived for the first fifty (50) Communications in each calendar
      month.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    9.  Minimum
      Monthly Guarantees. Customer
      guarantees that the total list
      price of all content billed successfully in a calendar month by the applicable
      Carriers (the
      "Monthly Retail Revenue") billed hereunder by such Carriers shall be at least
      $1,000,000
      per calendar month (the "Minimum Monthly Billing"). If the Monthly Retail
      Revenue in any calendar month is less than the Minimum Monthly Billing, then
      Mobile Messenger may, in its sole discretion, discontinue Customer's further
      participation in the advanced payment program as specified in Section 2 of
      this
      Amendment.

     

    10.  Survival;
      Counterparts; Full Authority. Sections
      2, 3, 4 5, 6, 7 and 8 of this
      Amendment shall survive termination or expiration of the Mobile Gateway
Agreement.
      This Amendment may be executed in counterparts, each of which shall be an
      original, but, when taken together, constitute but one and the same Amendment.
      The signatories
      represent and warrant that they have full authority to enter into this
Amendment
      on behalf of the entity for which they have signed. Except as specifically
      amended
      hereby, the terms of the Mobile Gateway Agreement shall remain in full force
      and
      effect.

     

    IN
      WITNESS WHEREOF, the parties have executed this Amendment effective as
of
      the
      Amendment Effective Date.

     

    
      	MOBILE MESSENGER, AUSTRALIA
              PTY
              LTD.	CUSTOMER
	 	 
	 	 
	 	                                              
              
	 	 
	By:                                                      
              	By: /s/
              Scott
              Walker                           
              
	Name: 	Name:
              Scott Walker
	Title:	Title: CEO
	 	 

    

    
 

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A

     

    MONTHLY
      ADVANCE

     

     

     

    
      	
              CHECK AND INITIAL
                

              THE SELECTION 

            	
              Days
                after 

              Calendar
                Month in 

              which payment
                is due

            	
              Monthly
                Gross 

              Retail
                Revenue 

            	
              Mobile
                Messenger 

              Fee
                as a percentage
                

              of
                Monthly
                Advance

            
	 	 	 	 
	 X Initials	
               

            	
               

            	
               

            
	
               

            	
              15

            	
              <
$1,000,000,

            	
              5.00%

            
	 	 	
              >=
                $1,000,000 & <

            	
               

            
	 	 	
              $2,000,000

            	
              4.20%

            
	 	 	
              >=
                2,000,000 

            	
              3.35%

            

    

     

    For
      illustrative purposes only, if:

     

    	·  	
            Customer
              elects, as specified on Exhibit
              A, to
              have the Monthly Advance paid within 15 days of the end of the month;
              and

          

    	·  	
            The
              estimated Customer Revenue Share is equal to $10,000 in such month,

          

     

    then:

     

    	·  	
            Mobile
              Messenger shall remit to Customer $6,650, the Net Advance (70% of
              Customer's estimated Customer Revenue Share, or $7,000 Monthly
              Advance,
              minus Mobile Messenger's Fee or $350) within 15 days of the end
              of the month;

          

    	·  	
            Mobile
              Messenger shall retain $350 as its fee (5.00% [the fee which pertains
              to a advance within 15 days of the end of the month as specified
              on
              Exhibit
              A] of
              $7,000 (which amount represents the Monthly Advance));
              and

          

    	·  	
            Mobile
              Messenger shall pay to Customer $3,000 ($10,000 Customer Revenue
              Share, to the extent collected, less the $7,000 Monthly Advance) within
              30
              days of collection.STANDARD
      MULTI-TENANT OFFICE LEASE - GROSS

    AIR
      COMMERCIAL REAL ESTATE ASSOCIATION

     

    1. Basic
      Provisions ("Basic Provisions").

     

    1.1
      Parties:
      This Lease ("Lease"), dated for reference purposes only July
      6,
      2005
is
      made by
      and between Dolphinshire,
      L.P., a California limited partnership ("Lessor")
      and
      New
      Motion, Inc., a Delaware corporation ("Lessee"),
      (collectively the "Parties", or individually a "Party"). 

     
      1.2(a) Premises:
        That certain portion of the Project (as defined below), known as Suite
        Numbers(s) 250, Second floor(s), consisting of approximately  5,176
 rentable square feet and approximately 4,581 useable
        square feet ("Premises"). The
        Premises are located at:  42
        Corporate Park in
        the
        City of  Irvine, County
        of
 Orange
        State
        of
California, with
        zip
        code 92606. In
        addition to Lessee's rights to use and occupy the Premises
        as hereinafter specified, Lessee shall have non-exclusive rights to the Common
        Areas (as defined in Paragraph 2.7 below) as hereinafter specified,
        but shall not have any rights to the roof, the exterior walls, the area above
        the dropped ceilings, or the utility raceways of the building containing
        the Premises ("Building")
        or
        to any
        other buildings in the Project. The Premises, the Building, the Common Areas,
        the land upon which they
        are
        located, along with all other buildings and improvements thereon, are herein
        collectively referred to as the " Project." The Project consists of approximately
        19,030
        rentable
        square feet. (See also Paragraph 2)

    

     

    1.2(b) Parking: twenty
      (20)  unreserved
      and  zero
      (0)
 reserved
      vehicle parking spaces at a monthly cost of $
      0.00
      per
      unreserved space and $ 0.00
      per
      reserved space. (See Paragraph 2.6)

     

    1.3
      Term:
      three
      (3)
years
      and
one
      (1)
months
      ("Original Term") commencing
      September
      1, 2005 ("Commencement
      Date") and
      ending
September
      30, 2008 ("Expiration
      Date"). (See
      also
      Paragraph 3)

     

    1.4
      Early
      Possession: See
      Addendum, Paragraph 53 ("Early
      Possession Date"). (See
      also
      Paragraphs 3.2
      and
      3.3)

     

    1.5
      Base Rent: $9, 834.40 per month ("Base Rent)",
      payable on the First (1st) day of each month commencing October 1, 2005
      (See also Paragraph 4)

     

    þIf
      this
      box is checked, there are provisions in this Lease for the Base Rent to be
      adjusted. (See Addendum,
      Paragraph 50)
      

     

    1.6
      Lessee's
      Share
      of Operating Expense Increase: twenty-seven
      & 20/100ths percent
      (27.20
      %)
      ("Lessee's
      Share"). Lessee's Share has been calculated by dividing the approximate rentable
      square footage of the Premises by the total approximate square footage of the
      rentable space contained in the Project and shall not be subject to revision
      except in connection with an actual change in the size of the Premises or a
      change in the space available for lease in the Project.

     

    1.7
      Base
      Rent and Other Monies Paid Upon Execution:

     

    (a) Base
      Rent: $9,
      834.40
      for
      the
      period  October,
      2005 (Due Oct. 1, 2005).

     

    (b) Security
      Deposit: $20,704.00
      ("Security
      Deposit"). (See also Paragraph 5)

    (c) Parking: $N/A
       for
      the
      period  N/A
      

     

    (d) Other:
      $20,
      704.00  for
      Prepaid
      Rent. See Addendum, Paragraph 51.

     

    (e) Total
      Due Upon Execution of this Lease: $41,408.00
      

     

    1.8 Agreed
      Use: General
      Office.
      (See
      also Paragraph 6) 

     

    1.9 Base
      Year; Insuring Party. The
      Base
      Year is 2006
      Lessor
      is
      the "Insuring
      Party".
      (See also Paragraphs 4.2 and 8)

     

    1.10 Real
      Estate
      Brokers: (See also Paragraph 15)

     

    (a) Representation:
      The
      following real estate brokers ( the " Brokers") and brokerage relationships
      exist in this transaction (check

    
      
        	
                applicable
                  boxes): 

                Grubb
                  & Ellis

              	
                 

              	
                represents
                  Lessor exclusively ("Lessor's Broker"); represents
                  Lessee exclusively ("Lessee's
                  Broker"); or
                  represents
                  both Lessor and Lessee ("Dual
                  Agency").

              
	
                 

              	
                GVA
                  Daum

              	
                 

              
	
                 

              	
                 

              	
                 

              
	
                0

              	
                 

              	
                 

              

      

    

     

    (b) Payment
      to
      Brokers: Upon
      execution and delivery of this Lease by both Parties, Lessor shall pay to the
      Brokers the brokerage fee
      agreed
      to in a separate written agreement (or if there is no such agreement, the sum
      of
N/A
      or
      N/A
      %
      of
      the
      total Base Rent for the brokerage services rendered by the
      Brokers).

     

    1.11
      Guarantor.
      The
      obligations of the Lessee under this Lease shall be guaranteed byNone
      ("Guarantor").
      (See
      also
      Paragraph 37) 

     

    1.12
      Business
      Hours for the Building: 8:00
      a.m.
      to
6:00
      p.m., Mondays
      through Fridays (except Building Holidays) and  9:00 a.m.
      to 1
      : 00 p.m.
      on
      Saturdays (except Building Holidays). " Building
      Holidays" shall mean the
      dates
      of observation of New Year's
      Day, President's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving
      Day, Christmas Day, ___________________ and _________________ .

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    1.13 Lessor
      Supplied Services. Notwithstanding
      the provisions of Paragraph 11.1, Lessor is NOT obligated to provide the
      following:

     

    o Janitorial
      services

    o Electricity

    o Other
      (specify):

     

    1.14
      Attachments.
      Attached
      hereto are the following, all of which constitute a part of this
      Lease:  

     

    
      	
            	
              þ

            	
              
                an
                  Addendum consisting of Paragraphs 50
                   through
                   61
                  

              

            

    

    
      	 	 	 

      	 	
              
                þ

              

            	
              a
                plot plan depicting the Premises;

            

    

    
      	 	 	 

      	 	
              þ

            	
              a
                current set of the Rules and
                Regulations;

            

    

     

    o a
      Work
      Letter;

     

    o a
      janitorial schedule;

     

    o other
      (specify):

     

    2. Premises.

     

    2.1
      Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor,
      the Premises, for the term, at the rental, and upon
      all
      of the terms, covenants and conditions set forth in this Lease. Unless otherwise
      provided herein, any statement of size set forth in this Lease, or
      that
      may have been used in calculating Rent, is an approximation which the Parties
      agree is reasonable and any payments based thereon are not subject to revision
      whether or not the actual size is more or less. Note:
      Lessee is advised to verify the actual size prior to executing this
      Lease.

     

    2.2
      Condition.
      Lessor
      shall deliver the Premises to Lessee in a clean condition on the Commencement
      Date or the Early Possession Date,
      whichever first occurs (" Start
      Date"), and
      warrants that the existing electrical, plumbing, fire sprinkler, lighting,
      heating, ventilating and air conditioning
      systems (" HVAC"), and all other items which the Lessor is obligated to
      construct pursuant to the Work Letter attached hereto, if any, other
than
      those
      constructed by Lessee, shall be in good operating condition on said date, that
      the structural elements of the roof, bearing walls and foundation
      of the Unit shall be free of material defects, and that the Premises do not
      contain hazardous levels of any mold or fungi defined as toxic under applicable
      state or federal law.

     

    2.3
      Compliance.
      Lessor
      warrants to the best of its knowledge that the improvements comprising the
      Premises and the Common Areas
      comply with the building codes that were in effect at the time that each such
      improvement, or portion thereof, was constructed, and also with all applicable
      laws, covenants or restrictions of record, regulations, and ordinances ("
Applicable
      Requirements") in
      effect
      on the Start Date. Said warranty
      does not apply to the use to which Lessee will put the Premises, modifications
      which may be required by the Americans with Disabilities Act or any similar
      laws
      as a result of Lessee's use (see Paragraph 50), or to any Alterations or Utility
      Installations (as defined in Paragraph 7.3(a)) made or to be
      made by
      Lessee. NOTE:
      Lessee is responsible for determining whether or not the zoning and other
      Applicable Requirements are appropriate
      for Lessee's intended use, and acknowledges that past uses of the Premises
      may
      no longer be allowed. If
      the
      Premises do not comply with said warranty, Lessor shall, except as otherwise
      provided, promptly after receipt of written notice from Lessee setting forth
      with specificity the
      nature
      and extent of such non-compliance, rectify the same. If the Applicable
      Requirements are hereafter changed so as to require during the term of
      this
      Lease the construction of an addition to or an alteration of the Premises,
      the
      remediation of any Hazardous Substance, or the reinforcement or other physical
      modification of the Premises (" Capital
      Expenditure"), Lessor
      and
      Lessee shall allocate the cost of such work as follows:

     

    (a) Subject
      to
      Paragraph 2.3(c) below, if such Capital Expenditures are required as a result
      of
      the specific and unique use of the Premises
      by Lessee as compared with uses by tenants in general, Lessee shall be fully
      responsible for the cost thereof, provided, however that if such Capital
      Expenditure is required during the last 2 years of this Lease and the cost
      thereof exceeds 6 months' Base Rent, Lessee may instead terminate this
      Lease
      unless Lessor notifies Lessee, in writing, within 10 days after receipt of
      Lessee's termination notice that Lessor has elected to pay the difference
      between the actual cost thereof and the amount equal to 6 months' Base Rent.
      If
      Lessee elects termination, Lessee shall immediately cease the
      use of
      the Premises which requires such Capital Expenditure and deliver to Lessor
      written notice specifying a termination date at least 90 days thereafter.
      Such termination date shall, however, in no event be earlier than the last
      day
      that Lessee could legally utilize the Premises without commencing
      such Capital Expenditure.

     

    (b) If
      such
      Capital Expenditure is not the result of the specific and unique use of the
      Premises by Lessee (such as, governmentally mandated
      seismic modifications), then Lessor and Lessee shall allocate the cost of such
      Capital Expenditure as follows: Lessor shall advance the funds necessary for
      such Capital Expenditure but Lessee shall be obligated to pay, each month during
      the remainder of the term of this Lease, on the date
      on
      which Base Rent is due, an amount equal to the product of multiplying Lessee's
      share of the cost of such Capital Expenditure (the percentage specified in
      Paragraph 1.6 by a fraction, the numerator of which is one, and the denominator
      of which is 144 (ie. 1/144th of the cost per month). Lessee shall
      pay
      interest on the unamortized balance of Lessee's share at a rate that
is
      commercially
      reasonable in the judgment of Lessor's accountants. Lessee may, however, prepay
      its obligation at any time. Provided, however, that if such Capital Expenditure
      is required during the last 2 years of this Lease or if Lessor reasonably
      determines that it is not economically feasible to pay its share thereof, Lessor
      shall have the option to terminate this Lease upon 90 days prior written notice
      to Lessee unless Lessee notifies Lessor, in writing, within 10 days after
      receipt of Lessor's termination notice that Lessee will pay for such Capital
      Expenditure. If Lessor does not elect to terminate, and fails to tender its
      share of any such Capital Expenditure, Lessee
      may
      advance such funds and deduct same, with Interest, from Rent until Lessor's
      share of such costs have been fully paid. If Lessee is unable to finance
      Lessor's share, or if the balance of the Rent due and payable for the remainder
      of this Lease is not sufficient to fully reimburse Lessee on an offset
      basis, Lessee shall have the right to terminate this Lease upon 30 days written
      notice to Lessor.

     

    (c) Notwithstanding
      the above, the provisions concerning Capital Expenditures are intended to apply
      only to nonvoluntary, unexpected,
      and new Applicable Requirements. If the Capital Expenditures are instead
      triggered by Lessee as a result of an actual or proposed change in use, change
      in intensity of use, or modification to the Premises then, and in that event,
      Lessee shall either: (i) immediately cease such changed
      use or intensity of use and/or take such other steps as may be necessary to
      eliminate the requirement for such Capital Expenditure, or (ii) complete such
      Capital Expenditure at its own expense. Lessee shall not have any right to
      terminate this Lease.

     

    2.4
      Acknowledgements.
      Lessee
      acknowledges that: (a) Lessee has been advised by Lessor and/or Brokers to
      satisfy itself with respect
      to
      the condition of the Premises (including but not limited to the electrical,
      HVAC
      and fire sprinkler systems, security, environmental aspects, and compliance
      with
      Applicable Requirements), and their suitability for Lessee's intended use,
      (b)
      Lessee has made such investigation as it deems necessary with reference to
      such
      matters and assumes all responsibility therefor as the same relate to its
      occupancy of the Premises, and (c) neither Lessor,
      Lessor's agents, nor Brokers have made any oral or written representations
      or
      warranties with respect to said matters other than as set forth in this
      Lease. In addition, Lessor acknowledges that: (i) Brokers have made no
      representations, promises or warranties concerning Lessee's ability to honor
      the
      Lease or suitability to occupy the Premises, and (ii) it is Lessor's sole
      responsibility to investigate the financial capability and/or suitability of
      all
      proposed tenants.

     

    2.5
      Lessee
      as Prior Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall
      be
      of no force or effect if immediately prior
      to
      the Start Date, Lessee was the owner or occupant of the Premises. In such event,
      Lessee shall be responsible for any necessary corrective work.

     

    2.6 Vehicle
      Parking. Subject
      to
      the
      Rules and Regulations attached hereto, and as established
      by Lessor from time to time, Lessee shall be entitled to rent-and use the number
      of parking spaces specified in Paragraph 1.2(b).

     

    (a) If
      Lessee
      commits, permits or allows any of the prohibited activities described in the
      Lease or the rules then in effect, then Lessor
      shall have the right, without notice, in addition to such other rights and
      remedies that it may have, to remove or tow away the vehicle involved and charge
      the cost to Lessee, which cost shall be immediately payable upon demand by
      Lessor.

     

    (b) The
      monthly rent per parking space specified in Paragraph 1.2(b) is subject to
      change upon 30 days prior written notice
      to
Lessee
      unless said rental rate is $0.00, then the rate will remain unchanged throughout
      the initial term of this Lease. The rent
      for
      the parking is payable
      one month in advance prior to the first day of each calendar month.

     

     2.7
      Common
      Areas - Definition.
      The term "Common Areas" is defined as all areas and facilities outside the
      Premises and within the exterior
      boundary line of the Project and interior utility raceways and installations
      within the Premises that are provided and designated by the Lessor from
      time
      to time for the general nonexclusive use of Lessor, Lessee and other tenants
      of
      the Project and their respective employees, suppliers, shippers,
      customers, contractors and invitees, including, but not limited to, common
      entrances, lobbies, corridors, stairwells, public restrooms, elevators,
      parking areas, loading and unloading areas, trash areas, roadways, walkways,
      driveways and landscaped areas.

     

    2.8
      Common
      Areas - Lessee's
      Rights. Lessor grants to Lessee, for the benefit of Lessee and its employees,
      suppliers, shippers, contractors, customers and invitees, during the term of
      this Lease, the nonexclusive right to use, in common with others entitled to
      such use, the Common
      Areas as they exist from time to time, subject to any rights, powers, and
      privileges reserved by Lessor under the terms hereof or under the terms of
      any
      rules and regulations or restrictions governing the use of the Project. Under
      no
      circumstances shall the right herein granted to use the Common Areas be deemed
      to include the right to store any property, temporarily or permanently, in
      the
      Common Areas. Any such storage shall be permitted only by the prior written
      consent of Lessor or Lessor's designated agent, which consent may be revoked
      at
      any time. In the event that any unauthorized storage shall occur then Lessor
      shall have the right, without notice, in addition to such other rights and
      remedies that it may have, to remove the property and charge the cost to Lessee,
      which cost shall be immediately payable upon demand by Lessor.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.9
      Common
      Areas - Rules
      and
      Regulations. Lessor or such other person(s) as Lessor may appoint shall have
      the
      exclusive control and management of the Common Areas and shall have the right,
      from time to time, to adopt, modify, amend and enforce reasonable rules and
      regulations
      ("Rules
      and Regulations") for
      the
      management, safety, care, and cleanliness of the grounds, the parking and
      unloading of vehicles and the preservation
      of good order, as well as for the convenience of other occupants or tenants
      of
      the Building and the Project and their invitees. The Lessee agrees to abide
      by
      and conform to all such Rules and Regulations, and shall use its best efforts
      to
      cause its employees, suppliers, shippers, customers, contractors and invitees
      to
      so abide and conform. Lessor shall not be responsible to Lessee for the
      noncompliance with said Rules and Regulations by other
      tenants of the Project.

     

    2.10 Common
      Areas - Changes. Lessor
      shall have the right, in Lessor's sole discretion, from time to
      time:

     

    (a) To
      make
      changes to the Common Areas, including, without limitation, changes in the
      location, size, shape and number of the
      lobbies, windows, stairways, air shafts, elevators, escalators, restrooms,
      driveways, entrances, parking spaces, parking areas, loading and unloading
      areas, ingress, egress, direction of traffic, landscaped areas, walkways and
      utility raceways;

     

    (b) To
      close
      temporarily any of the Common Areas for maintenance purposes so long as
      reasonable access to the Premises remains
      available;

     

    (c) To
      designate other land outside the boundaries of the Project to be a part of
      the
      Common Areas;

     

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

     

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

     

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

     

    3. Term.

    3.1 Term.
      The
      Commencement Date, Expiration Date and Original Term of this Lease are as
      specified in Paragraph 1.3.

     

    3.2
      Early
      Possession. If
      Lessee
      totally or partially occupies the Premises prior to the Commencement Date,
      the
      obligation to pay Base
      Rent
      shall be abated for the period of such early possession. All other terms of
      this
      Lease (including but not limited to the obligations to pay Lessee's
      Share of the Operating Expense Increase) shall be in effect during such period.
      Any such early possession shall not affect the Expiration Date.

     

    3.3
      Delay
      In Possession. Lessor
      agrees to use its best commercially reasonable efforts to deliver possession
      of
      the Premises to Lessee
      by
      the Commencement Date. If, despite said efforts, Lessor is unable to deliver
      possession by such date, Lessor shall not be subject to any liability
      therefor, nor shall such failure affect the validity of this Lease. Lessee
      shall
      not, however, be obligated to pay Rent or perform its other obligations
      until Lessor delivers possession of the Premises and any period of rent
      abatement that Lessee would otherwise have enjoyed shall run from the date
      of
      delivery of possession and continue for a period equal to what Lessee would
      otherwise have enjoyed under the terms hereof, but minus any days
      of
      delay caused by the acts or omissions of Lessee. If possession is not delivered
      within 60 days after the Commencement Date, as the same may
      be
      extended under the terms of any Work Letter executed by Parties, Lessee may,
      at
      its option, by notice in writing within 10 days after the end of such
      60
      day period, cancel this Lease, in which event the Parties shall be discharged
      from all obligations hereunder. If such written notice is not received
      by Lessor within said 10 day period, Lessee's right to cancel shall terminate.
      If possession of the Premises is not delivered within 120 days after the
      Commencement Date, this Lease shall terminate unless other agreements are
      reached between Lessor and Lessee, in writing.

     

    3.4
      Lessee
      Compliance. Lessor
      shall not be required to deliver possession of the Premises to Lessee until
      Lessee complies with its obligation
      to provide evidence of insurance (Paragraph 8.5). Pending delivery of such
      evidence, Lessee shall be required to perform all of its obligations
      under this Lease from and after the Start Date, including the payment of Rent,
      notwithstanding Lessor's election to withhold possession pending
      receipt of such evidence of insurance. Further, if Lessee is required to perform
      any other conditions prior to or concurrent with the Start Date, the
      Start
      Date shall occur but Lessor may elect to withhold possession until such
      conditions are satisfied.

     

    4. Rent.

     

    4.1
      Rent
      Defined. All
      monetary obligations of Lessee to Lessor under the terms of this Lease (except
      for the Security Deposit) are deemed
      to
      be rent ("Rent"). (See
      Addendum, Paragraph 50)

     

    4.2
      Operating
      Expense Increase. Lessee
      shall pay to Lessor during the term hereof, in addition to the Base Rent,
      Lessee's Share of the
      amount
      by which all Operating Expenses for each Comparison Year exceeds the amount
      of
      all Operating Expenses for the Base Year, such excess being
      hereinafter referred to as the "Operating
      Expense Increase", in
      accordance with the following provisions:

     

    (a) "Base
      Year" is
      as
      specified in Paragraph 1.9.

     

    (b)
      "Comparison
      Year" is
      defined
      as each calendar year during the term of this Lease subsequent to the Base
      Year;
provided,
      however, Lessee shall have no obligation to pay a share of the Operating Expense
      Increase applicable to the first 12 months of the Lease Term (other than such
      as
      are mandated by a governmental authority, as to which government mandated
      expenses Lessee shall pay Lessee's Share, notwithstanding they occur during
      the
      first twelve (12) months). Lessee's Share of the Operating Expense Increase
      for
      the first and last Comparison Years of the Lease Term shall be prorated
      according to that portion of such Comparison Year as to which Lessee is
      responsible for a share of such increase.

     

    (c)
      "Operating
      Expenses" include
      all costs incurred by Lessor relating to the ownership and operation of the
      Project, calculated
      as if the Project was at least 95% occupied, including, but not limited to,
      the
      following:

    (i)
      The
      operation, repair, and maintenance in neat, clean, safe, good order and
      condition, but not the replacement (see
      subparagraph (g)), of the following:

     

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

     

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

     

    (ii) Trash
      disposal, janitorial and security services, pest control services, and the
      costs
      of any environmental inspections;

     

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

     

    (iv) The
      cost
      of the premiums for the insurance policies maintained by Lessor pursuant to
      paragraph 8 and any deductible portion of an insured loss concerning the
      Building or the Common Areas;

     

    (v) The
      amount
      of the Real Property Taxes payable by Lessor pursuant to paragraph
      10;

     

    (vi) The
      cost
      of water, sewer, gas, electricity, and other publicly mandated services not
      separately metered;

     

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

     

    (viii) The
      cost
      of any capital improvement to the Building or the Project not covered under
      the
      provisions of Paragraph
      2.3 provided; however, that Lessor shall allocate the cost of any such capital
      improvement over a 12 year period and Lessee shall not be required to pay more
      than Lessee's Share of 1/144th of the cost of such Capital Expenditure in any
      given month;

     

    (ix) Replacement
      of equipment or improvements that have a useful life for accounting purposes
      of
      5 years or less.

     

    (d)
      Any
      item of Operating Expense that is specifically attributable to the Premises,
      the
      Building or to any other building in the Project
      or
      to the operation, repair and maintenance thereof, shall be allocated entirely
      to
      such Premises, Building.
      However,
      any such item that is not specifically attributable to the Building or to any
      other building or to the operation, repair and maintenance thereof, shall be
      equitably allocated by Lessor to all buildings in the Project.

     

    (e)
      The
      inclusion of the improvements, facilities and services set forth in Subparagraph
      4.2(c) shall not be deemed to impose an
      obligation upon Lessor to either have said improvements or facilities or to
      provide those services unless the Project already has the same, Lessor already
      provides the services, or Lessor has agreed elsewhere in this Lease to provide
      the same or some of them.

     

    Lessee's
      Share of Operating Expense Increase is payable monthly on the same day as the
      Base Rent is due hereunder. The
      amount
      of such payments shall be based on Lessor's estimate of the Operating Expense
      Expenses. Within 60 120 days after written request (but not more than once
      each
      year) Lessor shall deliver to Lessee a reasonably detailed statement showing
      Lessee's Share of the actual Common Area Operating
      Expenses incurred during the preceding year.a reasonably detailed statement
      showing Lessee's Share of the actual Operating Expense Increase
      incurred during such year. If Lessee's payments during such Year exceed Lessee's
      Share, Lessee shall credit the amount of such over-payment
      against Lessee's future payments. If Lessee's payments during such Year were
      less than Lessee's Share, Lessee shall pay to Lessor the amount
      of
      the deficiency within 10 days after delivery by Lessor to Lessee of said
      statement. Lessor and Lessee shall forthwith adjust between them by cash payment
      any balance determined to exist with respect to that portion of the last
      Comparison Year for which Lessee is responsible as to Operating Expense
      Increases, notwithstanding that the Lease term may have terminated before the
      end of such Comparison Year.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (g) Operating
      Expenses shall not include the costs of replacement for equipment or capital
      components such as the roof, foundations,
      exterior walls or a Common Area capital improvement, such as the parking lot
      paving, elevators, fences that have a useful life for accounting
      purposes of 5 years or more unless it is of the type described in paragraph
      4.2(c) (viii), in which case their cost shall be included as above provided.

     

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

     

    4.3
      Payment.
      Lessee
      shall cause payment of Rent to be received by Lessor in lawful money of the
      United States on or before the day on
      which
      it is due, without offset or deduction (except as specifically permitted in
      this
      Lease). All monetary amounts shall be rounded to the nearest whole
      dollar. In the event that any invoice prepared by Lessor is inaccurate such
      inaccuracy shall not constitute a waiver and Lessee shall be obligated to pay
      the amount set forth in this Lease. Rent for any period during the term hereof
      which is for less than one full calendar month shall be prorated based
      upon
      the actual number of days of said month. Payment of Rent shall be made to Lessor
      at its address stated herein or to such other persons or place
      as
      Lessor may from time to time designate in writing. Acceptance of a payment
      which
      is less than the amount then due shall not be a waiver of Lessor's
      rights to the balance of such Rent, regardless of Lessor's endorsement of any
      check so stating. In the event that any check, draft, or other instrument
      of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees
      to pay to Lessor the sum of $25 in addition to any Late Charge
      and
      Lessor, at its option, may require all future Rent be paid by cashier's check.
      Payments will be applied first to accrued late charges and attorney's fees,
      second to accrued interest, then to Base Rent and Common Area Operating
      Expenses, and any remaining amount to any other outstanding
      charges or costs.

     

    5. Security
      Deposit. Lessee
      shall deposit with Lessor upon execution hereof the Security Deposit as security
      for Lessee's faithful performance of
      its
      obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults
      under this Lease, Lessor may use, apply or retain all or any portion
of
      said
      Security Deposit for the payment of any amount due Lessor or to reimburse or
      compensate Lessor for any liability, expense, loss or damage which Lessor may
      suffer or incur by reason thereof. If Lessor uses or applies all or any portion
      of the Security Deposit, Lessee shall within 10 days after written request
      therefor, deposit monies with Lessor sufficient to restore said Security Deposit
      to the full amount required by this Lease. If
      the  or
      co
that
      the rtion
      to
      the initial-Base-Rent,
      Should the Agreed Use be amended to accommodate a material change in the
      business of Lessee or to accommodate a sublessee or
      assignee, Lessor shall have the right to increase the Security Deposit to the
      extent necessary, in Lessor's reasonable judgment, to account for any increased
      wear and tear that the Premises may suffer as a result thereof. If a change
      in
      control of Lessee occurs during this Lease and following such change
      the
      financial condition of Lessee is, in Lessor's reasonable judgment, significantly
      reduced, Lessee shall deposit such additional monies with Lessor
      as
      shall be sufficient to cause the Security Deposit to be at a commercially
      reasonable level based on such change in financial condition. Lessor
      shall not be required to keep the Security Deposit separate from its general
      accounts. Within 14 days after the expiration or termination of this Lease,
      if
      Lessor elects to apply the Security Deposit only to unpaid Rent, and otherwise
      within 30 days after the Premises have been vacated pursuant to Paragraph 7.4(c)
      below, Lessor shall return that portion of the Security Deposit not used or
      applied by Lessor. No part of the Security Deposit shall be
      considered to be held in trust, to bear interest or to be prepayment for any
      monies to be paid by Lessee under this Lease.

     

    6. Use.

     

    6.1
      Use.
      Lessee
      shall use and occupy the Premises only for the Agreed Use, or any other legal
      use which is reasonably comparable thereto,
      and for no other purpose. Lessee shall not use or permit the use of the Premises
      in a manner that is unlawful, creates damage, waste or a nuisance,
      or that disturbs occupants of or causes damage to neighboring premises or
      properties. Other than guide, signal and seeing eye dogs, Lessee shall
      not
      keep or allow in the Premises any pets, animals, birds, fish, or reptiles.
      Lessor shall not unreasonably withhold or delay its consent to any written
      request for a modification of the Agreed Use, so long as the same will not
      impair the structural integrity of the improvements of the Building, will
not
      adversely affect the mechanical, electrical, HVAC, and other systems of the
      Building, and/or will not affect the exterior appearance of the Building.
If
      Lessor
      elects to withhold consent, Lessor shall within 7 days after such request give
      written notification of same, which notice shall include an explanation
      of Lessor's objections to the change in the Agreed Use.

     

    6.2 Hazardous
      Substances.

     

    (a) Reportable
      Uses Require Consent. The
      term
      "Hazardous Substance" as used in this Lease shall mean any product, substance,
      or waste whose presence, use, manufacture, disposal, transportation, or release,
      either by itself or in combination with other materials expected
      to be on the Premises, is either: (i) potentially injurious to the public
      health, safety or welfare, the environment or the Premises, (ii) regulated
      or
      monitored by any governmental authority, or (iii) a basis for potential
      liability of Lessor to any governmental agency or third party under any
      applicable statute
      or
      common law theory. Hazardous Substances shall include, but not be limited to,
      hydrocarbons, petroleum, gasoline, and/or crude oil or any products,
      byproducts or fractions thereof. Lessee shall not engage in any activity in
      or
      on the Premises which constitutes a Reportable Use of Hazardous
      Substances without the express prior written consent of Lessor and timely
      compliance (at Lessee's expense) with all Applicable Requirements.
      "Reportable
      Use" shall
      mean
      (i) the installation or use of any above or below ground storage tank, (ii)
      the
      generation, possession, storage,
      use, transportation, or disposal of a Hazardous Substance that requires a permit
      from, or with respect to which a report, notice, registration or business
      plan is required to be filed with, any governmental authority, and/or (iii)
      the
      presence at the Premises of a Hazardous Substance with respect to
      which
      any Applicable Requirements requires that a notice be given to persons entering
      or occupying the Premises or neighboring properties. Notwithstanding the
      foregoing, Lessee may use any ordinary and customary materials reasonably
      required to be used in the normal course of the Agreed
      Use
      such as ordinary office supplies (copier toner, liquid paper, glue, etc.) and
      common household cleaning materials, so long as such use is in compliance
      with all Applicable Requirements, is not a Reportable Use, and does not expose
      the Premises or neighboring property to any meaningful risk of contamination
      or
      damage or expose Lessor to any liability therefor. In addition, Lessor may
      condition its consent to any Reportable Use upon receiving
      such additional assurances as Lessor reasonably deems necessary to protect
      itself, the public, the Premises and/or the environment against damage,
      contamination, injury and/or liability, including, but not limited to, the
      installation (and removal on or before Lease expiration or termination) of
      protective
      modifications (such as concrete encasements) and/or increasing the Security
      Deposit.

     

    (b) Duty
      to
      Inform Lessor. If
      Lessee
      knows, or has reasonable cause to believe, that a Hazardous Substance has come
      to be located
      in, on, under or about the Premises, other than as previously consented to
      by
      Lessor, Lessee shall immediately give written notice of such fact to Lessor,
      and
      provide Lessor with a copy of any report, notice, claim or other documentation
      which it has concerning the presence of such Hazardous Substance.

     

    (c) Lessee
      Remediation. Lessee
      shall not cause or permit any Hazardous Substance to be spilled or released
      in,
      on, under, or about
      the
      Premises (including through the plumbing or sanitary sewer system) and shall
      promptly, at Lessee's expense, comply with all Applicable Requirements
      and take all investigatory and/or remedial action reasonably recommended,
      whether or not formally ordered or required, for the cleanup of
      any
      contamination of, and for the maintenance, security and/or monitoring of the
      Premises or neighboring properties, that was caused or materially contributed
      to by Lessee, or pertaining to or involving any Hazardous Substance brought
      onto
      the Premises during the term of this Lease, by or for Lessee,
      or
      any third party.

     

    (d) Lessee
      Indemnification. Lessee
      shall indemnify, defend and hold Lessor, its agents, employees, lenders and
      ground lessor, if
      any,
      harmless from and against any and all loss of rents and/or damages, liabilities,
      judgments, claims, expenses, penalties, and attorneys' and consultants'
      fees arising out of or involving any Hazardous Substance brought onto the
      Premises by or for Lessee, or any third party (provided, however,
      that Lessee shall have no liability under this Lease with respect to underground
      migration of any Hazardous Substance under the Premises from areas outside
      of
      the Project not caused or contributed to by Lessee). Lessee's obligations shall
      include, but not be limited to, the effects of any contamination or injury
      to
      person, property or the environment created or suffered by Lessee, and the
      cost
      of investigation, removal, remediation, restoration
      and/or abatement, and shall survive the expiration or termination of this Lease.
      No termination, cancellation or release agreement entered into
      by
      Lessor and Lessee shall release Lessee from its obligations under this Lease
      with respect to Hazardous Substances, unless specifically so agreed
      by
      Lessor in writing at the time of such agreement.

     

    (e) Lessor
      Indemnification. Lessor
      and
      its successors and assigns shall indemnify, defend, reimburse and hold Lessee,
      its employees
      and lenders, harmless from and against any and all environmental damages,
      including the cost of remediation, which result from Hazardous Substances
      which existed on the Premises prior to Lessee's occupancy or which are caused
      by
      the gross negligence or willful misconduct of Lessor, its agents
      or
      employees. Lessor's obligations, as and when required by the Applicable
      Requirements, shall include, but not be limited to, the cost of investigation,
      removal, remediation, restoration and/or abatement, and shall survive the
      expiration or termination of this Lease.

     

    (f) Investigations
      and Remediations. Lessor
      shall retain the responsibility and pay for any investigations or remediation
      measures
      required by governmental entities having jurisdiction with respect to the
      existence of Hazardous Substances on the Premises prior to Lessee's
      occupancy, unless such remediation measure is required as a result of Lessee's
      use (including "Alterations", as defined in paragraph 7.3(a) below)
      of
      the Premises, in which event Lessee shall be responsible for such payment.
      Lessee shall cooperate fully in any such activities at the request of
      Lessor,
      including allowing Lessor and Lessor's agents to have reasonable access to
      the
      Premises at reasonable times in order to carry out Lessor's investigative
      and remedial responsibilities.

     

    (g)
      Lessor Termination Option. If
      a
      Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term
      of
      this Lease, unless
      Lessee is legally responsible therefor (in which case Lessee shall make the
      investigation and remediation thereof required by the Applicable Requirements
      and this Lease shall continue in full force and effect, but subject to Lessor's
      rights under Paragraph 6.2(d) and Paragraph 13), Lessor may,
      at
      Lessor's option, either (i) investigate and remediate such Hazardous Substance
      Condition, if required, as soon as reasonably possible at Lessor's
      expense, in which event this Lease shall continue in full force and effect,
      or
      (ii) if the estimated cost to remediate such condition exceeds 12 times
      the
      then monthly Base Rent or $100,000, whichever is greater, give written notice
      to
      Lessee, within 30 days after receipt by Lessor of knowledge of
      the
      occurrence of such Hazardous Substance Condition, of Lessor's desire to
      terminate this Lease as of the date 60 days following the date of such
notice.
      In
      the event Lessor elects to give a termination notice, Lessee may, within 10
      days
      thereafter, give written notice to Lessor of Lessee's commitment
      to pay the amount by which the cost of the remediation of such Hazardous
      Substance Condition exceeds an amount equal to 12 times the then
      monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor
      with said funds or satisfactory assurance thereof within 30 days following
      such
      commitment. In such event, this Lease shall continue in full force and effect,
      and Lessor shall proceed to make such remediation as
      soon as
      reasonably possible after the required funds are available. If Lessee does
      not
      give such notice and provide the required funds or assurance thereof
      within the time provided, this Lease shall terminate as of the date specified
      in
      Lessor's notice of termination.

     

    6.3
      Lessee's
      Compliance with Applicable Requirements. Except
      as
      otherwise provided in this Lease, Lessee shall, at Lessee's sole
      expense, fully, diligently and in a timely manner, materially comply with all
      Applicable Requirements, the requirements of any applicable fire insurance
      underwriter or rating bureau, and the recommendations of Lessor's engineers
      and/or consultants which relate in any manner to the Premises, without
      regard to whether said requirements are now in effect or become effective after
      the Start Date. Lessee shall, within 10 days after receipt of Lessor's
      written request, provide Lessor with copies of all permits and other documents,
      and other information evidencing Lessee's compliance with any Applicable
      Requirements specified by Lessor, and shall immediately upon receipt, notify
      Lessor in writing (with copies of any documents involved) of any
      threatened or actual claim, notice, citation, warning, complaint or report
      pertaining to or involving the failure of Lessee or the Premises to comply
      with
      any Applicable Requirements. Likewise, Lessee shall immediately give written
      notice to Lessor of: (i) any water damage to the Premises and any suspected
      seepage, pooling, dampness or other condition conducive to the production of
      mold; or (ii) any mustiness or other odors that might indicate the
      presence of mold in the Premises.

     

    6.4
      Inspection;
      Compliance. Lessor
      and
      Lessor's " Lender" (as defined in Paragraph 30) and consultants shall have
      the
      right to enter into
      Premises at any time, in the case of an emergency, and otherwise at reasonable
      times, after reasonable notice, for the purpose of inspecting the condition
      of the Premises and for verifying compliance by Lessee with this Lease. The
      cost
      of any such inspections shall be paid by Lessor, unless a violation of
      Applicable Requirements, or a Hazardous Substance Condition (see paragraph
      9.1e)
      is found to exist or be imminent, or the inspection is requested or ordered
      by a
      governmental authority. In such case, Lessee shall upon request reimburse Lessor
      for the cost of such inspection, so long as such inspection is reasonably
      related to the violation or contamination. In addition, Lessee shall provide
      copies of all relevant material safety data sheets
      (MSDS)
      to
      Lessor
      within 10 days of the receipt of written request therefor.

     

    7. Maintenance;
      Repairs; Utility Installations; Trade Fixtures and
      Alterations.

     

    7.1
      Lessee's
      Obligations. Notwithstanding
      Lessor's obligation to keep the Premises in good condition and repair, Lessee
      shall be responsible
      for payment of the cost thereof to Lessor as additional rent to
      be
      included as a part of Operating Expense Increase charges for
      that
      portion of
      the
      cost of any maintenance and repair of the Premises, or any equipment (wherever
      located) that serves only Lessee or the Premises, to the extent such
      cost
      is attributable to causes beyond normal wear and tear. Lessee shall be
      responsible for the cost of painting, repairing or replacing wall coverings,
      and
      to repair or replace any improvements with in
      the
      Premises. Lessor may, at its option, upon reasonable notice, elect to have
      Lessee perform
      any particular such maintenance or repairs the cost of which is otherwise
      Lessee's responsibility hereunder.

     

    7.2
      Lessor's
      Obligations. Subject
      to
      the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 4.2 (Operating
      Expenses), 6 (Use),
      7.1
      (Lessee's Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessor,
      subject to reimbursement pursuant to Paragraph 4.2, shall
      keep
      in good order, condition and repair the foundations, exterior walls, structural
      condition of interior bearing walls, exterior roof, fire sprinkler system,
      fire
      alarm and/or smoke detection systems, fire hydrants, and the Common Areas.
      Lessee expressly waives the benefit of any statute now or hereafter
      in effect to the extent it is inconsistent with the terms of this
      Lease.

     

    7.3 Utility
      Installations; Trade Fixtures; Alterations.

     

    (a) Definitions.
      The term "Utility Installations" refers to all floor and window coverings,
      air
      lines, vacuum lines, power panels, electrical distribution, security and fire
      protection systems, communication cabling, lighting fixtures, HVAC equipment,
      and plumbing in or on the Premises. The term "Trade
      Fixtures" shall
      mean
      Lessee's machinery and equipment that can be removed without doing material
      damage to the Premises. The term " Alterations"
      shall
      mean
      any modification of the improvements, other than Utility Installations or Trade
      Fixtures, whether by addition
      or deletion. "Lessee
      Owned Alterations and/or Utility Installations " are
      defined as Alterations and/or Utility Installations made by Lessee that
      are
      not yet owned by Lessor pursuant to Paragraph 7.4(a).

     

    (b) Consent.
      Lessee
      shall not make any Alterations or Utility Installations to the Premises without
      Lessor's prior written consent. Lessee
      may, however, make non-structural Utility Installations to the interior of
      the
      Premises (excluding the roof) without such consent but upon notice to
      Lessor,
      as long as they are not visible from the outside, do not involve puncturing,
      relocating or removing the roof, ceilings, floors or any existing walls,
      will not affect the electrical, plumbing, HVAC, and/or life safety systems,
      and
      the cumulative cost thereof during this Lease as extended does not exceed
      $2000. Notwithstanding the foregoing, Lessee shall not make or permit any roof
      penetrations and/or install anything on the roof without the prior
      written approval of Lessor. Lessor may, as a precondition to granting such
      approval, require Lessee to utilize a contractor chosen and/or approved
by
      Lessor.
      Any Alterations or Utility Installations that Lessee shall desire to make and
      which require the consent of the Lessor shall be presented to Lessor in written
      form with detailed plans. Consent shall be deemed conditioned upon Lessee's:
      (i)
      acquiring all applicable governmental permits, (ii) furnishing Lessor with
      copies of both the permits and the plans and specifications prior to
      commencement of the work, and (iii) compliance with all conditions of said
      permits and other Applicable Requirements in a prompt and expeditious manner.
      Any Alterations or Utility Installations shall be performed in a workmanlike
      manner with good and sufficient materials. Lessee shall promptly upon completion
      furnish Lessor with asbuilt plans and specifications.
      For work which costs an amount in excess of one month's Base Rent, Lessor may
      condition its consent upon Lessee providing a lien and
      completion bond in an amount equal to 150% of the estimated cost of such
      Alteration or Utility Installation and/or upon Lessee's posting an additional
      Security Deposit with Lessor.

     

    (c) Liens;
      Bonds. Lessee shall pay, when due, all claims for labor or materials furnished
      or alleged to have been furnished to or for Lessee at or for use on the
      Premises, which claims are or may be secured by any mechanic's or materialmen's
      lien against the Premises or any interest
      therein. Lessee shall give Lessor not less than 10 days notice prior to the
      commencement of any work in, on or about the Premises, and Lessor
      shall have the right to post notices of non-responsibility. If Lessee shall
      contest the validity of any such lien, claim or demand, then Lessee shall,
      at
      its sole expense defend and protect itself, Lessor and the Premises against
      the
      same and shall pay and satisfy any such adverse judgment that may be rendered
      thereon before the enforcement thereof. If Lessor shall require, Lessee shall
      furnish a surety bond in an amount equal to 150% of the amount
      of
      such contested lien, claim or demand, indemnifying Lessor against liability
      for
      the same. If Lessor elects to participate in any such action, Lessee
      shall pay Lessor's attorneys' fees and costs.

     

    7.4 Ownership;
      Removal; Surrender; and Restoration.

     

    (a) Ownership.
      Subject to Lessor's right to require removal or elect ownership as hereinafter
      provided, all Alterations and Utility Installations
      made by Lessee shall be the property of Lessee, but considered a part of the
      Premises. Lessor may, at any time, elect in writing to be the owner of all
      or
      any specified part of the Lessee Owned Alterations and Utility Installations.
      Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee
      Owned Alterations and Utility Installations shall, at the expiration or
      termination of this Lease, become the property of Lessor and be surrendered
      by Lessee with the Premises.

     

    (b) Removal.
      By delivery to Lessee of written notice from Lessor not earlier than 90 and
      not
      later than 30 days prior to the end of the
      term
      of this Lease, Lessor may require that any or all Lessee Owned Alterations
      or
      Utility Installations be removed by the expiration or termination of
this
      Lease. Lessor may require the removal at any time of all or any part of any
      Lessee Owned Alterations or Utility Installations made without the required
      consent.

     

    (c) Surrender;
      Restoration. Lessee
      shall surrender the Premises by the Expiration Date or any earlier termination
      date, with all of the improvements, parts and surfaces thereof clean and free
      of
      debris, and in good operating order, condition and state of repair, ordinary
      wear and tear excepted.
      "Ordinary wear and tear" shall not include any damage or deterioration that
      would have been prevented by good maintenance practice. Notwithstanding the
      foregoing, if this Lease is for 12 months or less, then Lessee shall surrender
      the Premises in the same condition as delivered to Lessee
      on
      the Start Date with NO allowance for ordinary wear and tear. Lessee shall repair
      any damage occasioned by the installation, maintenance or removal of Trade
      Fixtures, Lessee owned Alterations and/or Utility Installations, furnishings,
      and equipment as well as the removal of any storage tank installed by or for
      Lessee. Lessee shall also completely remove from the Premises any and all
      Hazardous Substances brought onto the Premises by or for
      Lessee, or any third party (except Hazardous Substances which were deposited
      via
      underground migration from areas outside of the Premises) even
      if
      such removal would require Lessee to perform or pay for work that exceeds
      statutory requirements. Trade Fixtures shall remain the property of Lessee
      and
      shall be removed by Lessee. Any personal property of Lessee not removed on
      or
      before the Expiration Date or any earlier termination date shall
      be
      deemed to have been abandoned by Lessee and may be disposed of or retained
      by
      Lessor as Lessor may desire. The failure by Lessee to timely vacate the Premises
      pursuant to this Paragraph 7.4(c) without the express written consent of Lessor
      shall constitute a holdover under the provisions
      of Paragraph 26 below.

     

    
      
        
        

      

      
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    8. Insurance;
      Indemnity.

     

    8.1
      Insurance
      Premiums. The
      cost
      of the premiums for the insurance policies maintained by Lessor pursuant to
      paragraph 8 are included
      as Operating Expenses (see paragraph 4.2 (c)(iv)). Said costs shall include
      increases in the premiums resulting from additional coverage related
      to
      requirements of the holder of a mortgage or deed of trust covering the Premises,
      Building and/or Project, increased valuation of the Premises, Building
      and/or Project, and/or a general premium rate increase. Said costs shall not,
      however, include any premium increases resulting from the nature
      of
      the occupancy of any other tenant of the Building. If the Project was not
      insured for the entirety of the Base Year, then the base premium shall
      be
      the lowest annual premium reasonably obtainable for the required insurance
      as of
      the Start Date, assuming the most nominal use possible of the Building and/or
      Project. In no event, however, shall Lessee be responsible for any portion
      of
      the premium cost attributable to liability insurance coverage
      in excess of $2,000,000 procured under Paragraph 8.2(b).

     

    8.2 Liability
      Insurance.

     

    (a) Carried
      by
Lessee.
      Lessee
      shall obtain and keep in force a Commercial General Liability policy of
      insurance protecting Lessee and
      Lessor
      as an additional insured against claims for bodily injury, personal injury
      and
      property damage based upon or arising out of the ownership, use, occupancy
      or
      maintenance of the Premises and all areas appurtenant thereto. Such insurance
      shall be on an occurrence basis providing single limit
      coverage in an amount not less than $1,000,000 per occurrence with an annual
      aggregate of not less than $2,000,000. Lessee shall add Lessor as an
      additional insured by means of an endorsement at least as broad as the Insurance
      Service Organization's "Additional Insured-Managers or Lessors of
      Premises" Endorsement and coverage shall also be extended to include damage
      caused by heat, smoke or fumes from a hostile fire. The policy shall
      not
      contain any intra-insured exclusions as between insured persons or
      organizations, but shall include coverage for liability assumed under this
      Lease
      as
      an "insured
      contract" for
      the
      performance of Lessee's indemnity obligations under this Lease. The limits
      of
      said insurance shall not, however,
      limit the liability of Lessee nor relieve Lessee of any obligation hereunder.
      Lessee shall provide an endorsement on its liability policy(ies) which provides
      that its insurance shall be primary to and not contributory with any similar
      insurance carried by Lessor, whose insurance shall be considered
      excess insurance only.

     

    (b) Carried
      by
Lessor.
      Lessor
      shall maintain liability insurance as described in Paragraph 8.2(a), in addition
      to, and not in lieu of, the
      insurance required to be maintained by Lessee. Lessee shall not be named as
      an
      additional insured therein.

     

    8.3 Property
      Insurance - Building, Improvements and Rental Value.

     

    (a) Building
      and Improvements. Lessor shall obtain and keep in force a policy or
      policies of insurance in the name of Lessor, with
      loss
      payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage
      to the Building and/or Project. The amount of such insurance
      shall be equal to the full insurable replacement cost of the Building and/or
      Project, as the same shall exist from time to time, or the amount required
      by any Lender, but in no event more than the commercially reasonable and
      available insurable value thereof. Lessee Owned Alterations and Utility
      Installations, Trade Fixtures, and Lessee's personal property shall be insured
      by Lessee under Paragraph 8.4. If the coverage is available and commercially
      appropriate, such policy or policies shall insure against all risks of direct
      physical loss or damage (except the perils of flood and/or earthquake unless
      required by a Lender), including coverage for debris removal and the enforcement
      of any Applicable Requirements requiring the upgrading, demolition,
      reconstruction or replacement of any portion of the Premises as the result
      of a
      covered loss. Said policy or policies shall also contain
      an
      agreed valuation provision in lieu of any coinsurance clause, waiver of
      subrogation, and inflation guard protection causing an increase in the
annual
      property insurance coverage amount by a factor of not less than the adjusted
      U.S. Department of Labor Consumer Price Index for All Urban Consumers
      for the city nearest to where the Premises are located. If such insurance
      coverage has a deductible clause, the deductible amount shall not exceed
      $1,000 per occurrence.

     

    (b) Rental
      Value. Lessor shall also obtain and keep in force a policy or policies
      in the name of Lessor with loss payable to Lessor and
      any
      Lender, insuring the loss of the full Rent for one year with an extended period
      of indemnity for an additional 180 days ("Rental Value insurance").
      Said insurance shall contain an agreed valuation provision in lieu of any
      coinsurance clause, and the amount of coverage shall be adjusted
      annually to reflect the projected Rent otherwise payable by Lessee, for the
      next
      12 month period.

     

    (c) Adjacent
      Premises. Lessee
      shall pay for any increase in the premiums for the property insurance of the
      Building and for the Common
      Areas or other buildings in the Project if said increase is caused by Lessee's
      acts, omissions, use or occupancy of the Premises.

     

    (d) Lessee's
      Improvements. Since
      Lessor is the Insuring Party, Lessor shall not be required to insure Lessee
      Owned Alterations and Utility Installations unless the item in question has
      become the property of Lessor under the terms of this Lease.

     

    8.4 Lessee's
      Property; Business Interruption Insurance.

     

    (a) Property
      Damage.
      Lessee
      shall obtain and maintain insurance coverage on all of Lessee's personal
      property, Trade Fixtures, and
      Lessee
      Owned Alterations and Utility Installations. Such insurance shall be full
      replacement cost coverage with a deductible of not to exceed $1,000
      per
      occurrence. The proceeds from any such insurance shall be used by Lessee for
      the
      replacement of personal property, Trade Fixtures and Lessee
      Owned Alterations and Utility Installations. Lessee shall provide Lessor with
      written evidence that such insurance is in force.

     

    (b) Business
      Interruption. Lessee shall obtain and maintain loss of income and extra expense
      insurance in amounts as will reimburse
      Lessee for direct or indirect loss of earnings attributable to all perils
      commonly insured against by prudent lessees in the business of Lessee or
      attributable to prevention of access to the Premises as a result of such
      perils.

     

    (c) No
      Representation of Adequate Coverage. Lessor
      makes no representation that the limits or forms of coverage of insurance
      specified herein are adequate to cover Lessee's property, business operations
      or
      obligations under this Lease.

     

    8.5
      Insurance
      Policies. Insurance
      required herein shall be by companies duly licensed or admitted to transact
      business in the state where
      the
      Premises are located, and maintaining during the policy term a "General
      Policyholders Rating" of at least A-, VI, as set forth in the most current
      issue of "Best's Insurance Guide", or such other rating as may be reasonably
      acceptable to Lessor.
      required-by-a-Lender. Lessee shall not do or
      permit
      to be done anything which invalidates the required insurance policies. Lessee
      shall, prior to the Start Date, deliver to Lessor certified-copiesce
      or-
      certificates evidencing the existence and amounts of the required insurance.
      No
      such policy shall be cancelable or subject
      to
      modification except after 10 days prior written notice to Lessor. Lessee shall,
      at least 30 days prior to the expiration of such policies, furnish Lessor
      with evidence of renewals or "insurance binders" evidencing renewal thereof,
      or
      Lessor may order such insurance and charge the cost thereof to Lessee,
      which amount shall be payable by Lessee to Lessor upon demand. Such policies
      shall be for a term of at least one year, or the length of the remaining
      term of this Lease, whichever is less. If either Party shall fail to procure
      and
      maintain the insurance required to be carried by it, the other Party
      may,
      but shall not be required to, procure and maintain the same.

     

    8.6
      Waiver
      of Subrogation. Without affecting any other rights or remedies, Lessee and
      Lessor each hereby release and relieve the other,
      and
      waive their entire right to recover damages against the other, for loss of
      or
      damage to its property arising out of or incident to the perils required to
      be
      insured against herein. The effect of such releases and waivers is not limited
      by the amount of insurance carried or required, or by any deductibles
      applicable hereto. The Parties agree to have their respective property damage
      insurance carriers waive any right to subrogation that such companies may have
      against Lessor or Lessee, as the case may be, so long as the insurance is not
      invalidated thereby.

     

    8.7
      Indemnity.
      Except
      for
      Lessor's gross negligence or willful misconduct, Lessee shall indemnify,
      protect, defend and hold harmless the
      Premises, Lessor and its agents, Lessor's master or ground lessor, partners
      and
      Lenders, from and against any and all claims, loss of rents and/or damages,
      liens, judgments, penalties, attorneys' and consultants' fees, expenses and/or
      liabilities arising out of, involving, or in connection with, the use and/or
      occupancy of the Premises by Lessee. If any action or proceeding is brought
      against Lessor by reason of any of the foregoing matters, Lessee shall
      upon
      notice defend the same at Lessee's expense by counsel reasonably satisfactory
      to
      Lessor and Lessor shall cooperate with Lessee in such defense.
      Lessor need not have first paid any such claim in order to be defended or
      indemnified.

     

    8.8
      Exemption of Lessor and its Agents from Liability. Notwithstanding
      the negligence or breach of this Lease by Lessor or its agents,
      neither Lessor nor its agents shall be liable under any circumstances for:
      (i)
      injury or damage to the person or goods, wares, merchandise or other
      property of Lessee, Lessee's employees, contractors, invitees, customers, or
      any
      other person in or about the Premises, whether such damage or injury
      is
      caused by or results from fire, steam, electricity, gas, water or rain, indoor
      air quality, the presence of mold or from the breakage, leakage, obstruction
      or
      other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC
      or
      lighting fixtures, or from any other cause, whether the said injury or damage
      results from conditions arising upon the Premises or upon other portions of
      the
      Building, or from other sources or places, (ii) any damages arising from any
      act
      or neglect of any other tenant of Lessor or from the failure of Lessor or its
      agents to enforce the provisions of any other lease
      in
      the Project, or (iii) injury to Lessee's business or for any loss of income
      or
      profit therefrom. Instead, it is intended that Lessee's sole recourse in
the
      event
      of such damages or injury be to file a claim on the insurance policy(ies) that
      Lessee is required to maintain pursuant to the provisions of paragraph
      8.

     

    8.9
      Failure
      to Provide Insurance. Lessee
      acknowledges that any failure on its part to obtain or maintain the insurance
      required herein
      will expose Lessor to risks and potentially cause Lessor to incur costs not
      contemplated by this Lease, the extent of which will be extremely difficult
      to ascertain. Accordingly, for any month or portion thereof that Lessee does
      not
      maintain the required insurance and/or does not provide Lessor with the required
      binders or certificates evidencing the existence of the required insurance,
      the
      Base Rent shall be automatically increased, without any requirement
      for notice to Lessee, by an amount equal to 10% of the then existing Base Rent
      or $100, whichever is greater. The parties agree that such increase
      in Base Rent represents fair and reasonable compensation for the additional
      risk/costs that Lessor will incur by reason of Lessee's failure to maintain
      the
      required insurance. Such increase in Base Rent shall in no event constitute
      a
      waiver of Lessee's Default or Breach with respect to the failure
      to
      maintain such insurance, prevent the exercise of any of the other rights and
      remedies granted hereunder, nor relieve Lessee of its obligation to maintain
      the insurance specified in this Lease.

     

    
      
        
        

      

      
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    9.Damage
      or Destruction.

     

    9.1 Definitions.

     

    (a) "Premises
      Partial Damage" shall
      mean
      damage or destruction to the improvements on the Premises, other than Lessee
      Owned Alterations and Utility Installations, which can reasonably be repaired
      in
      3 months or less from the date of the damage or destruction, and the
cost
      thereof does not exceed a sum equal to 6 month's Base Rent. Lessor shall notify
      Lessee in writing within 30 days from the date of the damage or destruction
      as to whether or not the damage is Partial or Total.

     

    (b) "Premises
      Total Destruction " shall
      mean
      damage or destruction to the improvements on the Premises, other than Lessee
      Owned
      Alterations and Utility Installations and Trade Fixtures, which cannot
      reasonably be repaired in 3 months or less from the date of the damage or
destruction
      and/or the cost thereof exceeds a sum equal to 6 12 month's Base Rent. Lessor
      shall notify Lessee in writing within 30 days from the date of the damage or
      destruction as to whether or not the damage is Partial or Total.

     

    (c) "Insured
      Loss" shall
      mean
      damage or destruction to improvements on the Premises, other than Lessee Owned
      Alterations and Utility
      Installations and Trade Fixtures, which was caused by an event required to
      be
      covered by the insurance described in Paragraph 8.3(a), irrespective
      of any deductible amounts or coverage limits involved.

     

    (d) "Replacement
      Cost" shall
      mean
      the cost to repair or rebuild the improvements owned by Lessor at the time
      of
      the occurrence to
      their
      condition existing immediately prior thereto, including demolition, debris
      removal and upgrading required by the operation of Applicable Requirements,
      and
      without deduction for depreciation.

     

    (e) "Hazardous
      Substance Condition " shall
      mean
      the occurrence or discovery of a condition involving the presence of, or a
      contamination
      by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under
      the
      Premises which requires repair, remediation, or restoration.

     

    9.2
      Partial Damage - Insured
      Loss. If
      a
      Premises Partial Damage that is an Insured Loss occurs, then Lessor shall,
      at
      Lessor's expense,
      repair such damage (but not Lessee's Trade Fixtures or Lessee Owned Alterations
      and Utility Installations) as soon as reasonably possible and this Lease shall
      continue in full force and effect; provided, however, that Lessee shall, at
      Lessor's election, make the repair of any damage or destruction the total cost
      to repair of which is $5,000 or less, and, in such event, Lessor shall make
      any
      applicable insurance proceeds available to Lessee
      on
      a reasonable basis for that purpose. Notwithstanding the foregoing, if the
      required insurance was not in force or the insurance proceeds are not sufficient
      to effect such repair, the Insuring Party shall promptly contribute the shortage
      in proceeds as and when required to complete said repairs. In
      the
      event, however, such shortage was due to the fact that, by reason of the unique
      nature of the improvements, full replacement cost insurance coverage was not
      commercially reasonable and available, Lessor shall have no obligation to pay
      for the shortage in insurance proceeds or to fully restore
      the unique aspects of the Premises unless Lessee provides Lessor with the funds
      to cover same, or adequate assurance thereof, within 10 days following
      receipt of written notice of such shortage and request therefor. If Lessor
      receives said funds or adequate assurance thereof within said 10 day
period,
      the party responsible for making the repairs shall complete them as soon as
      reasonably possible and this Lease shall remain in full force and effect. If
      such funds or assurance are not received, Lessor may nevertheless elect by
      written notice to Lessee within 10 days thereafter to: (i) make such restoration
      and repair as is commercially reasonable with Lessor paying any shortage in
      proceeds, in which case this Lease shall remain in full force
      and
      effect, or (ii) have this Lease terminate 30 days thereafter. Lessee shall
      not
      be entitled to reimbursement of any funds contributed by Lessee to repair any
      such damage or destruction. Premises Partial Damage due to flood or earthquake
      shall be subject to Paragraph 9.3, notwithstanding that there
      may
      be some insurance coverage, but the net proceeds of any such insurance shall
      be
      made available for the repairs if made by either Party.

     

    9.3
      Partial
      Damage - Uninsured Loss. If
      a
      Premises Partial Damage that is not an Insured Loss occurs, unless caused by
      a
negligent
      or willful act of Lessee (in which event Lessee shall make the repairs at
      Lessee's expense), Lessor may either: (i) repair such damage as soon as
      reasonably possible at Lessor's expense, in which event this Lease shall
      continue in full force and effect, or (ii) terminate this Lease by giving
      written notice to Lessee within 30 days after receipt by Lessor of knowledge
      of
      the occurrence of such damage. Such termination shall be effective 60
days
      following the date of such notice. In the event Lessor elects to terminate
      this
      Lease, Lessee shall have the right within 10 days after receipt of the
termination
      notice to give written notice to Lessor of Lessee's commitment to pay for the
      repair of such damage without reimbursement from Lessor. Lessee shall provide
      Lessor with said funds or satisfactory assurance thereof within 30 days after
      making such commitment. In such event this Lease shall
      continue in full force and effect, and Lessor shall proceed to make such repairs
      as soon as reasonably possible after the required funds are available.
      If Lessee does not make the required commitment, this Lease shall terminate
      as
      of the date specified in the termination notice.

     

    9.4
      Total
      Destruction. Notwithstanding
      any other provision hereof, if a Premises Total Destruction occurs, this Lease
      shall terminate 60
      days
      following such Destruction. If the damage or destruction was caused by the
      gross
      negligence or willful misconduct of Lessee, Lessor shall have
      the
      right to recover Lessor's damages from Lessee, except as provided in Paragraph
      8.6.

     

    9.5
      Damage
      Near End of Term. If
      at any
      time during the last 6 months of this Lease there is damage for which the cost
      to repair exceeds
      one month's Base Rent, whether or not an Insured Loss, Lessor may terminate
      this
      Lease effective 60 days following the date of occurrence of such
      damage by giving a written termination notice to Lessee within 30 days after
      the
      date of occurrence of such damage. Notwithstanding the foregoing,
      if Lessee at that time has an exercisable option to extend this Lease or to
      purchase the Premises, then Lessee may preserve this Lease by, (a)
      exercising such option and (b) providing Lessor with any shortage in insurance
      proceeds (or adequate assurance thereof) needed to make the repairs
      on
      or before the earlier of (i) the date which is 10 days after Lessee's receipt
      of
      Lessor's written notice purporting to terminate this Lease, or (ii) the
      day
      prior to the date upon which such option expires. If Lessee duly exercises
      such
      option during such period and provides Lessor with funds (or adequate assurance
      thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor's
      commercially reasonable expense, repair such damage
      as
      soon as reasonably possible and this Lease shall continue in full force and
      effect. If Lessee fails to exercise such option and provide such funds
      or
      assurance during such period, then this Lease shall terminate on the date
      specified in the termination notice and Lessee's option shall be
      extinguished.

     

    9.6 Abatement
      of Rent; Lessee's Remedies.

     

    (a) Abatement.
      In the event of Premises Partial Damage or Premises Total Destruction or a
      Hazardous Substance Condition for which
      Lessee is not responsible under this Lease, the Rent payable by Lessee for
      the
      period required for the repair, remediation or restoration of such damage
      shall be abated in proportion to the degree to which Lessee's use of the
      Premises is impaired, but not to exceed the proceeds received from the Rental
      Value insurance. All other obligations of Lessee hereunder shall be performed
      by
      Lessee, and Lessor shall have no liability for any such damage, destruction,
      remediation, repair or restoration except as provided herein.

     

    (b) Remedies.
      If
      Lessor
      shall be obligated to repair or restore the Premises and does not commence,
      in a
      substantial and meaningful
      way, such repair or restoration within 90 days after such obligation shall
      accrue, Lessee may, at any time prior to the commencement of such repair or
      restoration, give written notice to Lessor and to any Lenders of which Lessee
      has actual notice, of Lessee's election to terminate this Lease
      on a
      date not less than 60 days following the giving of such notice. If Lessee gives
      such notice and such repair or restoration is not commenced within
      30
      days thereafter, this Lease shall terminate as of the date specified in said
      notice. If the repair or restoration is commenced within such 30 days,
      this
      Lease shall continue in full force and effect. "Commence" shall mean either
      the
      unconditional authorization of the preparation of the required plans,
      or
      the beginning of the actual work on the Premises, whichever first
      occurs.

     

    9.7
      Termination;
      Advance Payments. Upon
      termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an
      equitable adjustment
      shall be made concerning advance Base Rent and any other advance payments made
      by Lessee to Lessor. Lessor shall, in addition, return to
      Lessee
      so much of Lessee's Security Deposit as has not been, or is not then required
      to
      be, used by Lessor.

     

    9.8
      Waive
      Statutes. Lessor
      and
      Lessee agree that the terms of this Lease shall govern the effect of any damage
      to or destruction of the
      Premises with respect to the termination of this Lease and hereby waive the
      provisions of any present or future statute to the extent inconsistent
      herewith.

     

    10.
      Real
      Property Taxes.

     

    10.1
      Definitions. As used herein, the term "Real
      Property Taxes" shall
      include any form of assessment; real estate, general, special, ordinary
      or extraordinary, or rental levy or tax (other than inheritance, personal income
      or estate taxes); improvement bond; and/or license fee imposed upon
      or
      levied against any legal or equitable interest of Lessor in the Project,
      Lessor's right to other income therefrom, and/or Lessor's business of
leasing,
      by any authority having the direct or indirect power to tax and where the funds
      are generated with reference to the Project address and where the
      proceeds so generated are to be applied by the city, county or other local
      taxing authority of a jurisdiction within which the Project is located.
"Real
      Property
      Taxes" shall
      also
      include any tax, fee, levy, assessment or charge, or any increase therein:
      (i)
      imposed by reason of events occurring during the term of this Lease, including
      but not limited to, a change in the ownership of the Project, (ii) a change
      in
      the improvements thereon, and/or (iii) levied or
      assessed on machinery or equipment provided by Lessor to Lessee pursuant to
      this
      Lease.

     

    10.2 Payment
      of Taxes. Except
      as
      otherwise provided in Paragraph 10.3, Lessor shall pay the Real Property Taxes
      applicable to the Project, and said payments shall be included in the
      calculation of Operating Expenses in accordance with the provisions of Paragraph
      4.2.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    10.3
      Additional Improvements. Operating Expenses shall not include Real Property
      Taxes specified in the tax assessors records and work
      sheets as being caused by additional improvements placed upon the Project by
      other lessees or by Lessor for the exclusive enjoyment of such other lessees.
      Notwithstanding Paragraph 10.2 hereof, Lessee shall, however, pay to Lessor
      at
      the time Operating Expenses are payable under Paragraph 4.2, the entirety of
      any
      increase in Real Property Taxes if assessed solely by reason of Alterations,
      Trade Fixtures or Utility Installations placed
      upon the Premises by Lessee or at Lessee's request or by reason of any
      alterations or improvements to the Premises made by Lessor subsequent
      to the execution of this Lease by the Parties.

     

    10.4
      Joint
      Assessment. If
      the
      Building is not separately assessed, Real Property Taxes allocated to the
      Building shall be an equitable proportion
      of the Real Property Taxes for all of the land and improvements included within
      the tax parcel assessed, such proportion to be determined by Lessor
      from the respective valuations assigned in the assessor's work sheets or such
      other information as may be reasonably available. Lessor's reasonable
      determination thereof, in good faith, shall be conclusive.

     

    10.5
      Personal
      Property Taxes. Lessee
      shall pay prior to delinquency all taxes assessed against and levied upon Lessee
      Owned Alterations
      and Utility Installations, Trade Fixtures, furnishings, equipment and all
      personal property of Lessee contained in the Premises. When possible, Lessee
      shall cause its Lessee Owned Alterations and Utility Installations, Trade
      Fixtures, furnishings, equipment and all other personal property
      to be assessed and billed separately from the real property of Lessor. If any
      of
      Lessee's said property shall be assessed with Lessor's real property,
      Lessee shall pay Lessor the taxes attributable to Lessee's property within
      10
      days after receipt of a written statement setting forth the taxes applicable
      to Lessee's property.

     

    11. Utilities
      and Services.

     

    11.1 Services
      Provided by Lessor. Lessor shall provide heating, ventilation, air conditioning,
      reasonable amounts of electricity for normal
      lighting and office machines, water for reasonable and normal drinking and
      lavatory use in connection with an office, (as
      may
      be located in the common
      areas of the Project), and
      replacement light bulbs and/or fluorescent tubes and ballasts for standard
      overhead fixtures. Lessor shall also provide janitorial services to the Premises
      and Common Areas 5 times per week, excluding Building Holidays, or pursuant
      to
      the attached janitorial schedule, if any. Lessor shall not, however, be required
      to provide janitorial services to kitchens or storage areas included within
      the
      Premises.

     

    Janitorial
      Services in the kitchen will not include washing dishes but will include dusting
      counter tops, trash removal and floor cleaning/waxing once per
      month.

     

    11.2
      Services
      Exclusive to Lessee. Lessee
      shall pay for all water, gas, heat, light, power, telephone and other utilities
      and services specially or exclusively supplied and/or metered exclusively to
      the
      Premises or to Lessee, together with any taxes thereon. If a service is deleted
      by Paragraph
      1.13 and such service is not separately metered to the Premises, Lessee shall
      pay at Lessor's option, either Lessee's Share or a reasonable proportion
      to be determined by Lessor of all charges for such jointly metered
      service.

     

    11.3
      Hours
      of Service. Said
      services and utilities shall be provided during times set forth in Paragraph
      1.12. Utilities and services required at
      other
      times shall be subject to advance request and reimbursement by Lessee to Lessor
      of the cost thereof.

     

    11.4
      Excess
      Usage by Lessee. Lessee
      shall not make connection to the utilities except by or through existing outlets
      and shall not install or use
      machinery or equipment in or about the Premises that uses excess water, lighting
      or power, or suffer or permit any act that causes extra burden upon
      the
      utilities or services, including but not limited to security and trash services,
      over standard office usage for the Project. Lessor shall require Lessee to
      reimburse Lessor for any excess expenses or costs that may arise out of a breach
      of this subparagraph by Lessee. Lessor may, in its sole discretion, install
      at
      Lessee's expense supplemental equipment and/or separate metering applicable
      to
      Lessee's excess usage or loading.

     

    11.5
      Interruptions. There shall be no abatement of rent and Lessor shall not be
      liable in any respect whatsoever for the inadequacy, stoppage,
      interruption or discontinuance of any utility or service due to riot, strike,
      labor dispute, breakdown, accident, repair or other cause beyond Lessor's
      reasonable control or in cooperation with governmental request or
      directions.

     

    12. Assignment
      and Subletting.

     

    12.1 Lessor's
      Consent Required.

    (a) Lessee
      shall not voluntarily or by operation of law assign, transfer, mortgage or
      encumber (collectively, "assign
      or assignment")
      or
      sublet
      all or any part of Lessee's interest in this Lease or in the Premises without
      Lessor's prior written consent.

     

    (b) Unless
      Lessee is a corporation and its stock ispublicly traded on a national stock
      exchange, a change in the control of Lessee shall
      constitute an assignment requiring consent. The transfer, on a cumulative basis,
      of 25% or more of the voting control of Lessee shall constitute a change
      in
      control for this purpose.

     

    (c) The
      involvement of Lessee or its assets in any transaction, or series of
      transactions (by way of merger, sale, acquisition, financing,
      transfer, leveraged buyout or otherwise), whether or not a formal assignment
      or
      hypothecation of this Lease or Lessee's assets occurs, which results
      or
      will result in a reduction of the Net Worth of Lessee by an amount greater
      than
      25% of such Net Worth as it was represented at the time of the
      execution of this Lease or at the time of the most recent assignment to which
      Lessor has consented, or as it exists immediately prior to said transaction
      or
      transactions constituting such reduction, whichever was or is greater, shall
      be
      considered an assignment of this Lease to which Lessor may
      withhold its consent. " Net
      Worth of Lessee" shall
      mean
      the net worth of Lessee (excluding any guarantors) established under generally
      accepted accounting
      principles.

     

    (d) An
      assignment or subletting without consent shall, at Lessor's option, be a Default
      curable after notice per Paragraph 13.1(c), or a
      noncurable Breach without the necessity of any notice and grace period. If
      Lessor elects to treat such unapproved assignment or subletting as a
noncurable
      Breach, Lessor may either: (i) terminate this Lease, or (ii) upon 30 days
      written notice, increase the monthly Base Rent to 110% of the Base Rent
      then
      in effect. Further, in the event of such Breach and rental adjustment, (i)
      the
      purchase price of any option to purchase the Premises held by Lessee
      shall be subject to similar adjustment to 110% of the price previously in
      effect, and (ii) all fixed and non-fixed rental adjustments scheduled during
      the
      remainder of the Lease term shall be increased to 110% of the scheduled adjusted
      rent.

     

    (e) Lessee's
      remedy for any breach of Paragraph 12.1 by Lessor shall be limited to
      compensatory damages and/or injunctive relief.

     

    (f) Lessor
      may
      reasonably withhold consent to a proposed assignment or subletting if Lessee
      is
      in Default at the time consent is requested.

     

    (g) Notwithstanding
      the foregoing, allowing a diminimus portion of the Premises, i e. 20 square
      feet
      or less, to be used by a third party vendor in connection with the installation
      of a vending machine or payphone shall not constitute a subletting.

     

    12.2 Terms
      and Conditions Applicable to Assignment and Subletting.

     

    (a) Regardless
      of Lessor's consent, no assignment or subletting shall: (i) be effective without
      the express written assumption by such assignee or sublessee of the obligations
      of Lessee under this Lease, (ii) release Lessee of any obligations hereunder,
      or
      (iii) alter the primary liability of Lessee for the payment of Rent or for
      the
      performance of any other obligations to be performed by Lessee.

     

    (b) Lessor
      may
      accept Rent or performance of Lessee's obligations from any person other than
      Lessee pending approval or disapproval
      of an assignment. Neither a delay in the approval or disapproval of such
      assignment nor the acceptance of Rent or performance shall constitute a waiver
      or estoppel of Lessor's right to exercise its remedies for Lessee's Default
      or
      Breach.

     

    (c) Lessor's
      consent to any assignment or subletting shall not constitute a consent to any
      subsequent assignment or subletting.

     

    (d) In
      the
      event of any Default or Breach by Lessee, Lessor may proceed directly against
      Lessee, any Guarantors or anyone else responsible
      for the performance of Lessee's obligations under this Lease, including any
      assignee or sublessee, without first exhausting Lessor's remedies
      against any other person or entity responsible therefore to Lessor, or any
      security held by Lessor.

     

    (e) Each
      request for consent to an assignment or subletting shall be in writing,
      accompanied by information relevant to Lessor's determination
      as to the financial and operational responsibility and appropriateness of the
      proposed assignee or sublessee, including but not limited to the
      intended use and/or required modification of the Premises, if any, together
      with
      a fee of $500 as consideration for Lessor's considering and processing said
      request. Lessee agrees to provide Lessor with such other or additional
      information and/or documentation as may be reasonably requested.
      (See also Paragraph 36) At all times throughout the initial term of the Lease
      and any renewal or option periods, Lessee shall be solely responsible for
the
      insurance requirements outlined in the Lease (See Paragraph 8) and shall
      indemnify, defend and hold Lessor harmless from any and all claims, acts,
      injuries, damage
      or
      negligence caused by or in connection with Lessee's sublessee.

     

    (f) Any
      assignee of, or sublessee under, this Lease shall, by reason of accepting such
      assignment, entering into such sublease, or entering
      into possession of the Premises or any portion thereof, be deemed to have
      assumed and agreed to conform and comply with each and every term,
      covenant, condition and obligation herein to be observed or performed by Lessee
      during the term of said assignment or sublease, other than such obligations
      as are contrary to or inconsistent with provisions of an assignment or sublease
      to which Lessor has specifically consented to in writing.

     

    (g) Lessor's
      consent to any assignment or subletting shall not transfer to the assignee
      or
      sublessee any Option granted to the original Lessee by this Lease unless such
      transfer is specifically consented to by Lessor in writing. (See Paragraph
      39.2)

     

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

     

    (a)
      Lessee
      hereby assigns and transfers to Lessor all of Lessee's interest in all Rent
      payable on any sublease, and Lessor may collect
      such Rent and apply same toward Lessee's obligations under this Lease; provided,
      however, that until a Breach shall occur in the performance of Lessee's
      obligations, Lessee may collect said Rent. In the event that the amount
      collected by Lessor exceeds Lessee's then outstanding obligations any
      such
      excess shall be refunded to Lessee. Lessor shall not, by reason of the foregoing
      or any assignment of such sublease, nor by reason of the collection
      of Rent, be deemed liable to the sublessee for any failure of Lessee to perform
      and comply with any of Lessee's obligations to such sublessee.
      Lessee hereby irrevocably authorizes and directs any such sublessee, upon
      receipt of a written notice from Lessor stating that a Breach exists in the
      performance of Lessee's obligations under this Lease, to pay to Lessor all
      Rent
      due and to become due under the sublease. Sublessee shall
      rely
      upon any such notice from Lessor and shall pay all Rents to Lessor without
      any
      obligation or right to inquire as to whether such Breach exists, notwithstanding
      any claim from Lessee to the contrary. In the event Lessee subleases all or
      a
      portion of the Premises and the total Base Rent payable by Sublessee
      exceeds the total Base Rent payable under the Lease ("Bonus Value") Lessee
      may
      first deduct its reasonable, direct, out of pocket expenses for lease
commissions
      and tenant improvements from the Bonus Value (which will then be split with
      Lessor on a 50/50 basis) before assigning and transferring to Lessor all of
      Lessee's
      interest in the balance of the Base Rent payable under any
      sublease.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (b) In
      the
      event of a Breach by Lessee, Lessor may, atits option,require sublessee toattorn
      to Lessor, in which event Lessor shall undertake
      the obligations of the sublessor under such sublease from the time of the
      exercise of said option to the expiration of such sublease; provided,
however,
      Lessor shall not be liable for any prepaid rents or security deposit paid by
      such sublessee to such sublessor or for any prior Defaults or Breaches of such
      sublessor.

     

    (c) Any
      matter
      requiring the consent of the sublessor under a sublease shall also require
      the
      consent of Lessor.

     

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

     

    (e) Lessor
      shall deliver a copyof anynotice ofDefault or Breach by Lessee tothe sublessee,
      who shall havethe rightto curethe Default
      of
      Lessee within the grace period, if any, specified in such notice. The sublessee
      shall have a right of reimbursement and offset from and against
      Lessee for any such Defaults cured by the sublessee.

     

    13. Default;
      Breach; Remedies.

     

    13.1
      Default; Breach. A "Default" is
      defined
      as a failure by the Lessee to comply with or perform any of the terms,
      covenants, conditions,
      Of
      Rules
      and
      Regulations or Lessee is in monetary default under this Lease. A "Breach"
      is
      defined
      as the occurrence of one or more of the following
      Defaults, and the failure of Lessee to cure such Default within any applicable
      grace period:

     

    (a) The
      abandonment of the Premises; or the vacating of the Premises without providing
      a
      commercially reasonable level of security,
      or where the coverage of the property insurance described in Paragraph 8.3
      is
      jeopardized as a result thereof, or without providing reasonable assurances
      to minimize potential vandalism.

     

    (b) The
      failure of Lessee to make any payment of Rent or any Security Deposit required
      to be made by Lessee hereunder, whether to
      Lessor
      or to a third party, when due, to provide reasonable evidence of insurance
      or
      surety bond, or to fulfill any obligation under this Lease which endangers
      or
      threatens life or property, where such failure continues for a period of 3
      business days following written notice to Lessee.

     

    (c) The
      commission of waste, act or acts constituting public or private nuisance, and/or
      an illegal activity on the Premises by Lessee,
      where such actions continue for a period of 3 business days following written
      notice to Lessee.

     

    (d) The
      failure by Lessee to provide (i) reasonable written evidence of compliance
      with
      Applicable Requirements, (ii) the service contracts,
      (iii) the rescission of an unauthorized assignment or subletting, (iv) an
      Estoppel Certificate, (v) a requested subordination, non-disturbance and
      attornment agreement, (vi) evidence concerning any guaranty and/or Guarantor,
      (vii) any document requested under Paragraph 41, (viii) material data
safety
      sheets (MSDS), or (ix) any other documentation or information which Lessor
      may
      reasonably require of Lessee under the terms of this Lease, where any such
      failure continues for a period of 10 days following written notice to
      Lessee.

     

    (e) A
      Default
      by Lessee as to the terms, covenants, conditions or provisions of this Lease,
      or
      of the rules adopted under Paragraph 2.9
      hereof, other than those described in subparagraphs 13.1(a), (b) or (c), above,
      where such Default continues for a period of 30 days after written notice;
      provided, however, that if the nature of Lessee's Default is such that more
      than
      30 days are reasonably required for its cure, then it shall not be deemed
      to
      be a Breach if Lessee commences such cure within said 30 day period and
      thereafter diligently prosecutes such cure to completion.

     

    (f) The
      occurrence of any of the following events: (i) the making of any general
      arrangement or assignment for the benefit of creditors;
      (ii) becoming a "debtor" as defined in 11 U.S.C. § 101 or any successor statute
      thereto (unless, in the case of a petition filed against Lessee, the same is
      dismissed within 60 days); (iii) the appointment of a trustee or receiver to
      take possession of substantially all of Lessee's assets located at the Premises
      or of Lessee's interest in this Lease, where possession is not restored to
      Lessee within 30 days; or (iv) the attachment, execution or other judicial
      seizure of substantially all of Lessee's assets located at the Premises or
      of
      Lessee's interest in this Lease, where such seizure is not discharged within
      30
      days; provided, however, in the event that any provision of this subparagraph
      is
      contrary to any applicable law, such provision shall be of no force
      or
      effect, and not affect the validity of the remaining provisions.

     

    (g) The
      discovery that any financial statement of Lessee or of any Guarantor given
      to
      Lessor was materially false.

     

    (h) If
      the
      performance of Lessee's obligations under this Lease is guaranteed: (I) the
      death of a Guarantor, (ii) the termination of a Guarantor's liability with
      respect to this Lease other than in accordance with the terms of such guaranty,
      (iii) a Guarantor's becoming insolvent or the subject of a bankruptcy filing,
      (iv) a Guarantor's refusal to honor the guaranty, or (v) a Guarantor's breach
      of
      its guaranty obligation on an anticipatory basis, and Lessee's failure, within
      60 days following written notice of any such event, to provide written
      alternative assurance or security, which, when coupled with the then existing
      resources of Lessee, equals or exceeds the combined financial resources of
      Lessee and the Guarantors that existed at the time of execution of this
      Lease.

     

    13.2
      Remedies..
      If
      Lessee
      fails to perform any of its affirmative duties or obligations, within 10 days
      after written notice (or in case of an emergency, without notice), Lessor may,
      at its option, perform such duty or obligation on Lessee's behalf, including
      but
      not limited to the obtaining of reasonably
      required bonds, insurance policies, or governmental licenses, permits or
      approvals. Lessee shall pay to Lessor an amount equal to 115% of the
      costs
      and expenses incurred by Lessor in such performance upon receipt of an invoice
      therefor. In the event of a Breach, Lessor may, with or without
      further notice or demand, and without limiting Lessor in the exercise of any
      right or remedy which Lessor may have by reason of such Breach:

     

    (a) Terminate
      Lessee's right to possession of the Premises by any lawful means, in which
      case
      this Lease shall terminate and Lessee
      shall immediately surrender possession to Lessor. In such event Lessor shall
      be
      entitled to recover from Lessee: (i) the unpaid Rent which had been
      earned at the time of termination; (ii) the worth at the time of award of the
      amount by which the unpaid rent which would have been earned after termination
      until the time of award exceeds the amount of such rental loss that the Lessee
      proves could have been reasonably avoided; (iii) the worth at the time of award
      of the amount by which the unpaid rent for the balance of the term after the
      time of award exceeds the amount of such rental loss that the
      Lessee
      proves could be reasonably avoided; and (iv) any other amount necessary to
      compensate Lessor for all the detriment proximately caused by the
      Lessee's failure to perform its obligations under this Lease or which in the
      ordinary course of things would be likely to result therefrom, including but
      not
      limited to the cost of recovering possession of the Premises, expenses of
      reletting, including necessary renovation and alteration of the Premises,
      reasonable attorneys' fees, and that portion of any leasing commission paid
      by
      Lessor in connection with this Lease applicable to the unexpired term of
this
      Lease. The worth at the time of award of the amount referred to in provision
      (iii) of the immediately preceding sentence shall be computed by discounting
      such amount at the discount rate of the Federal Reserve Bank of the District
      within which the Premises are located at the time of award plus one percent.
      Efforts by Lessor to mitigate damages caused by Lessee's Breach of this Lease
      shall not waive Lessor's right to recover damages under
      Paragraph 12. If termination of this Lease is obtained through the provisional
      remedy of unlawful detainer, Lessor shall have the right to recover in
      such
      proceeding any unpaid Rent and damages as are recoverable therein, or Lessor
      may
      reserve the right to recover all or any part thereof in a separate suit. If
      a
      notice and grace period required under Paragraph 13.1 was not previously given,
      a notice to pay rent or quit, or to perform or quit given
      to
      Lessee under the unlawful detainer statute shall also constitute the notice
      required by Paragraph 13.1. In such case, the applicable grace period
      required by Paragraph 13.1 and the unlawful detainer statute shall run
      concurrently, and the failure of Lessee to cure the Default within the
greater
      of
      the two such grace periods shall constitute both an unlawful detainer and a
      Breach of this Lease entitling Lessor to the remedies provided for in
      this
      Lease and/or by said statute.

     

    (b) Continue
      the Lease and Lessee's right to possession and recover the Rent as it becomes
      due, in which event Lessee may sublet
      or
      assign, subject only to reasonable limitations. Acts of maintenance, efforts
      to
      relet, and/or the appointment of a receiver to protect the Lessor's
      interests, shall not constitute a termination of the Lessee's right to
      possession.

     

    (c) Pursue
      any
      other remedy now or hereafter available under the laws or judicial decisions
      of
      the state wherein the Premises are located. The expiration or termination of
      this Lease and/or the termination of Lessee's right to possession shall not
      relieve Lessee from liability under any
      indemnity provisions of this Lease as to matters occurring or accruing during
      the term hereof or by reason of Lessee's occupancy of the Premises.

     

    13.3
      Inducement
      Recapture. Any
      agreement for free or abated rent or other charges, or for the giving or paying
      by Lessor to or for Lessee
      of
      any cash or other bonus, inducement or consideration for Lessee's entering
      into
      this Lease, all of which concessions are hereinafter referred to
      as
      "Inducement Provisions", shall be deemed conditioned upon Lessee's full and
      faithful performance of all of the terms, covenants and conditions of
      this
      Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision shall
      automatically be deemed deleted from this Lease and of no further
      force or effect, and any rent, other charge, bonus, inducement or consideration
      theretofore abated, given or paid by Lessor under such an Inducement
      Provision shall be immediately due and payable by Lessee to Lessor,
      notwithstanding any subsequent cure of said Breach by Lessee. The acceptance
      by Lessor of rent or the cure of the Breach which initiated the operation of
      this paragraph shall not be deemed a waiver by Lessor of the provisions of
      this
      paragraph unless specifically so stated in writing by Lessor at the time of
      such
      acceptance.

     

    13.4
      Late
      Charges. Lessee
      hereby acknowledges that late payment by Lessee of Rent will cause Lessor to
      incur costs not contemplated
      by this Lease, the exact amount of which will be extremely difficult to
      ascertain. Such costs include, but are not limited to, processing and
accounting
      charges, and late charges which may be imposed upon Lessor by any Lender.
      Accordingly, if any Rent shall not be received by Lessor within
      5
      10 days after such amount shall be due, then, without any requirement for notice
      to Lessee, Lessee shall immediately pay to Lessor a one-time late charge equal
      to 10% of each such overdue amount or $100, whichever is greater. The parties
      hereby agree that such late charge represents a fair and
      reasonable estimate of the costs Lessor will incur by reason of such late
      payment. Acceptance of such late charge by Lessor shall in no event constitute
      a waiver of Lessee's Default or Breach with respect to such overdue amount,
      nor
      prevent the exercise of any of the other rights and remedies granted
      hereunder. In the event that a late charge is payable hereunder, whether or
      not
      collected, for 3 consecutive installments of Base Rent, then notwithstanding
      any
      provision of this Lease to the contrary, Base Rent shall, at Lessor's option,
      become due and payable quarterly in advance.

     

    
      
        
        

      

      
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    13.5
      Interest. Any monetary payment due Lessor hereunder, other than late charges,
      not received by Lessor, when due as to scheduled
      payments (such as Base Rent) or within 30 days following the date on which
      it
      was due for nonscheduled payment, shall bear interest from the date when due,
      as
      to scheduled payments, or the 31st day after it was due as to nonscheduled
      payments. The interest (" Interest") charged shall be computed
      at the rate of 10% per annum but shall not exceed the maximum rate allowed
      by
      law. Interest is payable in addition to the potential late charge
      provided for in Paragraph 13.4.

     

    13.6 Breach
      by
      Lessor.

     

    (a) Notice
      of
      Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails
      within a reasonable time to perform an
      obligation required to be performed by Lessor. For purposes of this Paragraph,
      a
      reasonable time shall in no event be less than 30 days after receipt
      by
      Lessor, and any Lender whose name and address shall have been furnished Lessee
      in writing for such purpose, of written notice specifying wherein
      such obligation of Lessor has not been performed; provided, however, that if
      the
      nature of Lessor's obligation is such that more than 30 days are
      reasonably required for its performance, then Lessor shall not be in breach
      if
      performance is commenced within such 30 day period and thereafter diligently
      pursued to completion.

     

    (b) Performance
      by Lessee on Behalf of Lessor. In the event that neither Lessor nor Lender
      cures
      said breach within 30 days after
      receipt of said notice, or if having commenced said cure they do not diligently
      pursue it to completion, then Lessee may elect to cure said breach at
      Lessee's expense and offset from Rent the actual and reasonable cost to perform
      such cure, provided however, that such offset shall not exceed an amount
      equal to the greater of one month's Base Rent or the Security Deposit, reserving
      Lessee's right to seek reimbursement from Lessor for any such
      expense in excess of such offset. Lessee shall document the cost of said cure
      and supply said documentation to Lessor.

     

    14. Condemnation.
      If
      the
      Premises or any portion thereof are taken under the power of eminent domain
      or
      sold under the threat of the exercise of
      said
      power (collectively "Condemnation"),
      this
      Lease
      shall terminate as to the part taken as of the date the condemning authority
      takes title or possession,
      whichever first occurs. If more than 10% of the rentable floor area of the
      Premises, or more than 25% of Lessee's Reserved Parking Spaces,
      if
      any, are taken by Condemnation, Lessee may, at Lessee's option, to be exercised
      in writing within 10 days after Lessor shall have given Lessee written notice
      of
      such taking (or in the absence of such notice, within 10 days after the
      condemning authority shall have taken possession) terminate this Lease as of
      the
      date the condemning authority takes such possession. If Lessee does not
      terminate this Lease in accordance with the foregoing, this Lease shall remain
      in full force and effect as to the portion of the Premises remaining, except
      that the Base Rent shall be reduced in proportion to the reduction in utility
      of
      the Premises caused by such Condemnation. Condemnation awards and/or payments
      shall be the property of Lessor, whether such award shall be made as
      compensation for diminution in value of the leasehold, the value of the part
      taken, or for severance damages; provided, however, that Lessee shall be
      entitled to any compensation for Lessee's relocation expenses, loss of business
      goodwill and/or Trade
      Fixtures, without regard to whether or not this Lease is terminated pursuant
      to
      the provisions of this Paragraph. All Alterations and Utility Installations
      made to the Premises by Lessee, for purposes of Condemnation only, shall be
      considered the property of the Lessee and Lessee shall be entitled
      to any and all compensation which is payable therefor. In the event that this
      Lease is not terminated by reason of the Condemnation, Lessor shall repair
      any
      damage to the Premises caused by such Condemnation.

     

    15. Brokerage
      Fees.

     

    15.1 Additional
      Commission.
      In addition to the payments owed pursuant to Paragraph 1.10 above, and unless
      Lessor and the Brokers otherwise agree in writing, Lessor agrees that: (a)
      if
      Lessee exercises any Option, (b) if lessee acquires from Lessor any rights
      to
      the premises, or other promises owned by Lessor and located within the Project,
      (c) if Lessee remains in possession of the Premises with the consent of Lessor,
      after the expiration of this Lease, or (d) if Base Rent is increased, whether
      by
      agreement or operations of an exculpation clause herein, then, Lessor shall
      pay
      Brokers a fee in accordance with the schedule of the Brokers in effect at the
      time of the execution of this lease.

     

    15.2 Assumption
      of Obligations.
      Any buyer or transferee or Lessor’s interest in this Lease shall be deemed to
      have assumed Lessor’s obligation hereunder. Brokers shall be third party
      beneficiaries of the provisions of Paragraphs 1.10, 15, 22, and 31. If Lessor
      fails to pay to Brokers any amounts due as and for brokerage fees pertaining
      to
      this Lease when due, then such amounts shall accrue interest. In addition,
      if
      Lessor fails to pay any amounts to Lessee’s Broker when due, Lessee’s Broker may
      send written notice to Lessor and Lessee of such failure and if Lessor fails
      to
      pay such amounts within 10 days after said notice, Lessee shall pay said monies
      to its Broker and offset such amounts against Rent. In addition, Lessee’s Broker
      shall be deemed to be a third party beneficiary of any commission agreement
      entered into by and/or between Lessor and Lessor’s Broker for the limited
      purpose of collecting any brokerage fee owed.

    15.3
      Representations
      and Indemnities of Broker Relationships. Lessee
      and
      Lessor each represent and warrant to the other that it has
      had no
      dealings with any person, firm, broker or finder (other than the Brokers, if
      any) in connection with this Lease, and that no one other than said named
      Brokers is entitled to any commission or finder's fee in connection herewith.
      Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold
      the other harmless from and against liability for compensation or charges which
      may be claimed by any such unnamed broker, finder or
      other
      similar party by reason of any dealings or actions of the indemnifying Party,
      including any costs, expenses, attorneys' fees reasonably incurred with respect
      thereto.

     

    16.
      Estoppel
      Certificates.

     

    (a) Each
      Party
      (as "Responding
      Party") shall
      within 10 days after written notice from the other Party (the " Requesting
      Party") execute, acknowledge and deliver to the Requesting Party a statement
      in
      writing in form similar to the then most current " Estoppel Certificate" form
      published by the AIRCommercial Real Estate Association, plus such additional
      information, confirmation and/or statements as may be reasonably requested
      by the Requesting Party.

     

    (b) If
      the
      Responding Party shall fail to execute or deliver the Estoppel Certificate
      within such 10 day period, the Requesting Party may execute an Estoppel
      Certificate stating that: (i) the Lease is in full force and effect without
      modification except as may be represented by the Requesting
      Party, (ii) there are no uncured defaults in the Requesting Party's performance,
      and (iii) if Lessor is the Requesting Party, not more than one month's rent
      has
      been paid in advance. Prospective purchasers and encumbrancers may rely upon
      the
      Requesting Party's Estoppel Certificate, and the Responding
      Party shall be estopped from denying the truth of the facts contained in said
      Certificate.

     

    (c) If
      Lessor
      desires to finance, refinance, or sell the Premises, orany part thereof, Lessee
      and all Guarantors shall deliver to any potential
      lender or purchaser designated by Lessor such financial statements as may be
      reasonably required by such lender or purchaser, including but not limited
      to
      Lessee's financial statements for the past 3 years within
      ten (10) calendar days of Lessor's oral Or
      written
      request. All
      such
      financial statements shall be received by Lessor and such lender or purchaser
      in
      confidence and shall be used only for the purposes herein set
      forth.

     

     17.
      Definition
      of Lessor. The
      term
"Lessor"
      as
      used
      herein shall mean the owner or owners at the time in question of the fee title
      to the Premises,
      or, if this is a sublease, of the Lessee's interest in the prior lease. In
      the
      event of a transfer of Lessor's title or interest in the Premises or this
Lease,
      Lessor shall deliver to the transferee or assignee (in cash or by credit) any
      unused Security Deposit held by Lessor. Except as provided in Paragraph
      15, upon such transfer or assignment and delivery of the Security Deposit,
      as
      aforesaid, the prior Lessor shall be relieved of all liability with respect
      to
      the obligations and/or covenants under this Lease thereafter to be performed
      by
      the Lessor. Subject to the foregoing, the obligations and/or covenants in this
      Lease to be performed by the Lessor shall be binding only upon the Lessor as
      hereinabove defined.

     

    18.
      Severability.
      The invalidity of any provision of this Lease, as determined by a court of
      competent jurisdiction, shall in no way affect the validity
      of any other provision hereof.

     

    19.
      Days.
      Unless otherwise specifically indicated to the contrary, the word " days" as
      used in this Lease shall mean and refer to calendar days.

     

     20.
      Limitation
      on Liability. The
      obligations of Lessor under this Lease shall not constitute personal obligations
      of Lessor or its partners, members,
      directors, officers or shareholders, and Lessee shall look to the Project,
      and
      to no other assets of Lessor, for the satisfaction of any liability of
Lessor
      with respect to this Lease, and shall not seek recourse against Lessor's
      partners, members, directors, officers or shareholders, or any of their
personal
      assets for such satisfaction.

     

    21.
      Time
      of
      Essence. Time is of the essence with respect to the performance of all
      obligations to be performed or observed by the Parties under this
      Lease.

     

    22.
      No
      Prior or
      Other Agreements; Broker Disclaimer.
      This Lease and
      the
      attached Addendum to Lease contains
      all agreements between the
      Parties with respect to any matter mentioned herein, and no other prior or
      contemporaneous agreement or u nderstanding shall be
      effective. 

     

    
      
        
          
          

        

        
          9

          
            

          

        

        
          
          

      

       23. Notices.

       

    

    23.1
      Notice
      Requirements. All
      notices required or permitted by this Lease or applicable law shall be in
      writing and may be delivered in person
      (by
      hand or by courier) or may be sent by regular, certified or registered mail
      or
      U.S. Postal Service Express Mail, with postage prepaid, or by facsimile
      transmission, and shall be deemed sufficiently given if served in a manner
      specified in this Paragraph 23. The addresses noted adjacent to a Party's
      signature on this Lease shall be that Party's address for delivery or mailing
      of
      notices. Either Party may by written notice to the other specify a different
      address for notice, except that upon Lessee's taking possession of the Premises,
      the Premises shall constitute Lessee's address for notice. A copy
      of
      all notices to Lessor shall be concurrently transmitted to such party or parties
      at such addresses as Lessor may from time to time hereafter designate in
      writing.

     

    23.2
      Date
      of Notice. Any
      notice
      sent by registered or certified mail, return receipt requested, shall be deemed
      given on the date of delivery shown on the receipt card, or if no delivery
      date
      is shown, the postmark thereon. If sent by regular mail the notice shall be
      deemed given 72 hours after the
      same
      is addressed as required herein and mailed with postage prepaid. Notices
      delivered by United States Express Mail or overnight courier that guarantee
      next day delivery shall be deemed given 24 hours after delivery of the same
      to
      the Postal Service or courier. Notices transmitted by facsimile transmission
      or similar means shall be deemed delivered upon telephone confirmation of
      receipt (confirmation report from fax machine is sufficient), provided a copy
      is
      also delivered via delivery or mail. If notice is received on a Saturday, Sunday
      or legal holiday, it shall be deemed received on the next business
      day.

     

     24.
      Waivers.
      No
      waiver
      by Lessor of the Default or Breach of any term, covenant or condition hereof
      by
      Lessee, shall be deemed a waiver of any
      other
      term, covenant or condition hereof, or of any subsequent Default or Breach
      by
      Lessee of the same or of any other term, covenant or condition hereof. Lessor's
      consent to, or approval of, any act shall not be deemed to render unnecessary
      the obtaining of Lessor's consent to, or approval of, any subsequent
      or similar act by Lessee, or be construed as the basis of an estoppel to enforce
      the provision or provisions of this Lease requiring such consent. The acceptance
      of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee.
      Any
      payment by Lessee may be accepted by Lessor
      on
      account of moneys or damages due Lessor, notwithstanding any qualifying
      statements or conditions made by Lessee in connection therewith,
      which such statements and/or conditions shall be of no force or effect
      whatsoever unless specifically agreed to in writing by Lessor at or before
      the
      time of deposit of such payment.

     

    25.
      Disclosures
      Regarding The Nature of a Real Estate Agency Relationship.

     

    (a) When
      entering into a discussion with a real estate agent regarding a real estate
      transaction, a Lessor or Lessee should from the outset understand what type
      of
      agency relationship or representation it has with the agent or agents in the
      transaction. Lessor and Lessee acknowledge being advised by the Brokers in
      this
      transaction, as follows:

     

    (i) Lessor's
      Agent. A
      Lessor's
      agent under a listing agreement with the Lessor acts as the agent for the Lessor
      only.
      A
      Lessor's agent or subagent has the following affirmative obligations:
To
      the
      Lessor: A
      fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings
      with
      the Lessor. To
      the
      Lessee and the Lessor: a.
      Diligent exercise of reasonable skills and care in performance of the agent's
      duties.
      b.
      A duty of honest and fair dealing and good faith. c. A duty to disclose all
      facts known to the agent materially affecting the value or desirability
of
      the
      property that are not known to, or within the diligent attention and observation
      of, the Parties. An agent is not obligated to reveal to either Party any
      confidential information obtained from the other Party which does not involve
      the affirmative duties set forth above.

     

    (ii) Lessee's
      Agent. An
      agent
      can agree to act as agent for the Lessee only. In these situations, the agent
      is
      not the
      Lessor's agent, even if by agreement the agent may receive compensation for
      services rendered, either in full or in part from the Lessor. An agent
acting
      only for a Lessee has the following affirmative obligations. To
      the
      Lessee: A
      fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings
      with the Lessee. To
      the
      Lessee and the Lessor: a.
      Diligent exercise of reasonable skills and care in performance of the agent's
      duties. b. A duty
      of
      honest and fair dealing and good faith. c. A duty to disclose all facts known
      to
      the agent materially affecting the value or desirability of the property
      that are not known to, or within the diligent attention and observation of,
      the
      Parties. An agent is not obligated to reveal to either Party any confidential
      information obtained from the other Party which does not involve the affirmative
      duties set forth above.

     

    (iii) Agent
      Representing Both Lessor and Lessee. A
      real
      estate agent, either acting directly or through one or more associate licenses,
      can legally be the agent of both the Lessor and the Lessee in a transaction,
      but
      only with the knowledge and consent of both the Lessor
      and
      the Lessee. In a dual agency situation, the agent has the following affirmative
      obligations to both the Lessor and the Lessee: a. A fiduciary duty
      of
      utmost care, integrity, honesty and loyalty in the dealings with either Lesser
      or the Lessee. b. Other duties to the Lessor and the Lessee as stated above
      in
      subparagraphs (i) or (ii). In representing both Lessor and Lessee, the agent
      may
      not without the express permission of the respective Party,
      disclose to the other Party that the Lessor will accept rent in an amount less
      than that indicated in the listing or that the Lessee is willing to pay a
higher
      rent than that offered. The above duties of the agent in a real estate
      transaction do not relieve a Lessor or Lessee from the responsibility to protect
      their own interests. Lessor and Lessee should carefully read all agreements
      to
      assure that they adequately express their understanding of the transaction.
      A
      real estate agent is a person qualified to advise about real estate. If legal
      or
      tax advise is desired, consult a competent professional.

     

    (b)
      Brokers have no responsibility with respect to any default or breach hereof
      by
      either Party. The Parties agree that no lawsuit
      or
      other legal proceeding involving any breach of duty, error or omission relating
      to this Lease may be brought against Broker more than one year after the Start
      Date and that the liability (including court costs and attorneys' fees), of
      any
      Broker with respect to any such lawsuit and/or legal proceeding shall not exceed
      the fee received by such Broker pursuant to this Lease; provided, however,
      that
      the foregoing limitation on each Broker's liability shall not be applicable
      to
      any gross negligence or willful misconduct of such Broker.

     

    (c)
      Buyer
      and
      Seller agree to identify to Brokers as "Confidential" any communication or
      information given Brokers that is considered
      by such Party to be confidential.

     

    26.
      No
      Right To Holdover. Lessee
      has
      no right to retain possession of the Premises or any part thereof beyond the
      expiration or termination of

    this
      Lease. In the event that Lessee holds over, then the Base Rent shall be
      increased to -150%,
      200%
      of
      the Base Rent applicable immediately preceding
      the expiration or termination. Nothing contained herein shall be construed
      as
      consent by Lessor to any holding over by Lessee.

     

    27.
      Cumulative
      Remedies. No
      remedy
      or election hereunder shall be deemed exclusive but shall, wherever possible,
      be
      cumulative with all

    other
      remedies at law or in equity.

     

     28.
      Covenants
      and Conditions; Construction of Agreement. All
      provisions of this Lease to be observed or performed by Lessee are both
covenants
      and conditions. In construing this Lease, all headings and titles are for the
      convenience of the Parties only and shall not be considered a part
      of
      this Lease. Whenever required by the context, the singular shall include the
      plural and vice versa. This Lease shall not be construed as if prepared
      by one of the Parties, but rather according to its fair meaning as a whole,
      as
      if both Parties had prepared it.

     

     29.
      Binding
      Effect; Choice of Law. This
      Lease
      shall be binding upon the Parties, their personal representatives, successors
      and assigns and be
      governed by the laws of the State in which the Premises are located. Any
      litigation between the Parties hereto concerning this Lease shall be
initiated
      in the county in which the Premises are located.

     

    30.
      Subordination;
      Attornment; Non-Disturbance.

     

    30.1
      Subordination.
      This
      Lease
      and any Option granted hereby shall be subject and subordinate to any ground
      lease, mortgage, deed of
      trust,
      or other hypothecation or security device (collectively, " Security Device"),
      now or hereafter placed upon the Premises, to any and all advances made
      on
      the security thereof, and to all renewals, modifications, and extensions
      thereof. Lessee agrees that the holders of any such Security Devices (in this
      Lease together referred to as " Lender") shall have no liability or obligation
      to perform any of the obligations of Lessor under this Lease. Any Lender may
      elect to have this Lease and/or any Option granted hereby superior to the lien
      of its Security Device by giving written notice thereof to Lessee,
      whereupon this Lease and such Options shall be deemed prior to such Security
      Device, notwithstanding the relative dates of the documentation
      or recordation thereof.

     

    30.2
      Attornment.
      In
      the
      event that Lessor transfers title to the Premises, or the Premises are acquired
      by another upon the foreclosure or
      termination of a Security Device to which this Lease is subordinated (i) Lessee
      shall, subject to the non-disturbance provisions of Paragraph 30.3, attorn
      to
      such new owner, and upon request, enter into a new lease, containing all of
      the
      terms and provisions of this Lease, with such new owner for the
      remainder of the term hereof, or, at the election of the new owner, this Lease
      will automatically become a new lease between Lessee and such new owner,
      and
      (ii) Lessor shall thereafter be relieved of any further obligations hereunder
      and such new owner shall assume all of Lessor's obligations, except that such
      new owner shall not: (a) be liable for any act or omission of any prior lessor
      or with respect to events occurring prior to acquisition of ownership; (b)
      be
      subject to any offsets or defenses which Lessee might have against any prior
      lessor, (c) be bound by prepayment of more than one month's rent, or (d) be
      liable for the return of any security deposit paid to any prior
      lessor.

     

    30.3
      Non-Disturbance.
      With
      respect to Security Devices entered into by Lessor after the execution of this
      Lease, Lessee's subordination
      of this Lease shall be subject to receiving a commercially reasonable
      non-disturbance agreement (a " Non-Disturbance
      Agreement") from
      the
      Lender which Non-Disturbance Agreement provides that Lessee's possession of
      the
      Premises, and this Lease, including any options to extend the
      term
      hereof, will not be disturbed so long as Lessee is not in Breach hereof and
      attorns to the record owner of the Premises. Further, within 60 days
      after
      the execution of this Lease, Lessor shall use its commercially reasonable
      efforts to obtain a Non-Disturbance Agreement from the holder of any
      pre-existing Security Device which is secured by the Premises. In the event
      that
      Lessor is unable to provide the Non-Disturbance Agreement within said 60 days,
      then Lessee may, at Lessee's option, directly contact Lender and attempt to
      negotiate for the execution and delivery of a Non-Disturbance Agreement.

     

    30.4
      Self-Executing.
      The
      agreements contained in this Paragraph 30 shall be effective without the
      execution of any further documents; provided,
      however, that, upon written request from Lessor or a Lender in connection with
      a
      sale, financing or refinancing of the Premises, Lessee and Lessor
      shall execute such further writings as may be reasonably required to separately
      document any subordination, attornment and/or Non-Disturbance
      Agreement provided for herein.

     

    
      
        
        

      

      
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    31. Attorneys'
      Fees. If
      any
      Party er-BrekeF brings an action or proceeding involving the Premises whether
      founded in tort, contract or equity, or to declare rights hereunder, the
      Prevailing Party (as hereafter defined) in any such proceeding, action, or
      appeal thereon, shall be entitled to reasonable attorneys'
      fees. Such fees may be awarded in the same suit or recovered in a separate
      suit,
      whether or not such action or proceeding is pursued to decision or judgment.
      The
      term, "Prevailing
      Party" shall
      include, without limitation, a Party who substantially obtains or defeats the
      relief sought, as the case may be, whether by compromise, settlement, judgment,
      or the abandonment by the other Party of its claim or defense. The
      attorneys' fees award shall not be computed in accordance with any court fee
      schedule, but shall be such as to fully reimburse all attorneys' fees reasonably
      incurred. In addition, Lessor shall be entitled to attorneys' fees, costs and
      expenses incurred in the preparation and service of notices of Default
      and consultations in connection therewith, whether or not a legal action is
      subsequently commenced in connection with such Default or resulting Breach
      ($200 is a reasonable minimum per occurrence for such services and
      consultation).

     

    32. Lessor's
      Access; Showing Premises; Repairs. Lessor
      and
      Lessor's agents shall have the right to enter the Premises at any time, in
      the
      case of an emergency, and otherwise at reasonable times after reasonable prior
      notice for the purpose of showing the same to prospective purchasers, lenders,
      or tenants, and making such alterations, repairs, improvements or additions
      to
      the Premises as Lessor may deem necessary or desirable and the erecting, using
      and maintaining of utilities, services, pipes and conduits through the Premises
      and/or other premises as long as there is no material adverse
      effect on Lessee's use of the Premises. All such activities shall be without
      abatement of rent or liability to Lessee.

     

    33. Auctions.
      Lessee
      shall not conduct, nor permit to be conducted, any auction upon the Premises
      without Lessor's prior written consent. Lessor shall not be obligated to
      exercise any standard of reasonableness in determining whether to permit an
      auction.

     

    34. Signs.
      Lessor
      may
      place on the Premises ordinary "For Sale" signs at any time and ordinary "For
      Lease" signs during the last 6 months of the
      term
      hereof.

     

    35. Termination;
      Merger. Unless
      specifically stated otherwise in writing by Lessor, the voluntary or other
      surrender of this Lease by Lessee, the mutual
      termination or cancellation hereof, or a termination hereof by Lessor for Breach
      by Lessee, shall automatically terminate any sublease or lesser estate
      in
      the Premises; provided, however, that Lessor may elect to continue any one
      or
      all existing subtenancies. Lessor's failure within 10 days following
      any such event to elect to the contrary by written notice to the holder of
      any
      such lesser interest, shall constitute Lessor's election to have such
      event
      constitute the termination of such interest.

     

    36. Consents.
      Except
      as
      otherwise provided herein, wherever in this Lease the consent of a Party is
      required to an act by or for the other Party, such
      consent shall not be unreasonably withheld or delayed. Lessor's actual
      reasonable costs and expenses (including but not limited to architects',
attorneys',
      engineers' and other consultants' fees) incurred in the consideration of, or
      response to, a request by Lessee for any Lessor consent, including
      but not limited to consents to an assignment, a subletting or the presence
      or
      use of a Hazardous Substance, shall be paid by Lessee upon receipt
      of
      an invoice and supporting documentation therefor. Lessor's consent to any act,
      assignment or subletting shall not constitute an acknowledgment
      that no Default or Breach by Lessee of this Lease exists, nor shall such consent
      be deemed a waiver of any then existing Default or Breach, except as may be
      otherwise specifically stated in writing by Lessor at the time of such consent.
      The failure to specify herein any particular condition
      to Lessor's consent shall not preclude the imposition by Lessor at the time
      of
      consent of such further or other conditions as are then reasonable
      with reference to the particular matter for which consent is being given. In
      the
      event that either Party disagrees with any determination made
      by
      the other hereunder and reasonably requests the reasons for such determination,
      the determining party shall furnish its reasons in writing and in
      reasonable detail within 10 business days following such request.

     

    37. Guarantor.

     

    
      38.
        Quiet
        Possession. Subject
        to
        payment by Lessee of the Rent and performance of all of the covenants,
        conditions and provisions on Lessee's
        part to be observed and performed under this Lease, Lessee shall have quiet
        possession and quiet enjoyment of the Premises during the term hereof.

       

      39.
        Options.
        If
        Lessee
        is granted an Option, as defined below, then the following provisions shall
        apply.

       

      39.1
        Definition.
        "Option" shall
        mean: (a) the right to extend the term of or renew this Lease or to extend
        or
        renew any lease that Lessee
        has
        on other property of Lessor; (b) the right of first refusal or first offer
        to
        lease either the Premises or other property of Lessor; (c) the right to purchase
        or the right of first refusal to purchase the Premises or other property
        of
        Lessor.

       

      39.2
        Options
        Personal To Original Lessee. Any
        Option
        granted to Lessee in this Lease is personal to the original Lessee, and cannot
        be
        assigned or exercised by anyone other than said original Lessee and only
        while
        the original Lessee is in full possession of the Premises and, if requested
        by
        Lessor, with Lessee certifying that Lessee has no intention of thereafter
        assigning or subletting.

       

      39.3 Multiple
        Options. In
        the
        event that Lessee has any multiple Options to extend or renew this Lease,
        a
        later Option cannot be exercised unless the prior Options have been validly
        exercised.

       

    

    39.4 Effect
      of
      Default on Options.

     

    (a) Lessee
      shall have no right to exercise an Option: (i) during the period commencing
      with
      the giving of any notice of Default and continuing until said Default is cured,
      (ii) during the period of time any Rent is unpaid (without regard to whether
      notice thereof is given Lessee), (iii) during
      the
      time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has
      been given 3 or more notices of separate Default, whether or not the
      Defaults are cured, during the 12 month period immediately preceding the
      exercise of the Option.

     

    (b) The
      period
      of time withinwhich an Option may be exercised shall not be extended or enlarged
      by reason of Lessee's inabilityto exercise an Option because of the provisions
      of Paragraph 39.4(a).

     

    (c) An
      Option
      shall terminate and be of no further force or effect, notwithstanding Lessee's
      due and timely exercise of the Option, if, after
      such
      exercise and prior to the commencement of the extended term or completion of
      the
      purchase, (i) Lessee fails to pay Rent for a period of 30 days after such Rent
      becomes due (without any necessity of Lessor to give notice thereof), or (ii)
      if
      Lessee commits a Breach of this Lease.

     

     40.
      Security
      Measures. Lessee
      hereby acknowledges that the Rent payable to Lessor hereunder does not include
      the cost of guard service or other
      security measures, and that Lessor shall have no obligation whatsoever to
      provide same. Lessee assumes all responsibility for the protection of
the
      Premises, Lessee, its agents and invitees and their property from the acts
      of
      third parties. In the event, however, that Lessor should elect to provide
security
      services, then the cost thereof shall be an Operating Expense.

     

    41.Reservations.

     

    (a) Lessor
      reserves the right: (i) to grant, without the consent or joinder of Lessee,
      such
      easements, rights and dedications that Lessor
      deems necessary, (ii) to cause the recordation of parcel maps and restrictions,
      (iii) to create and/or install new utility raceways, so long as such
easements,
      rights, dedications, maps, restrictions, and utility raceways do not
      unreasonably interfere with the use of the Premises by Lessee. Lessor
may
      also:
      change the name, address or title of the Building or Project upon at least
      90
      days prior written notice; provide and install, at Lessee's expense,
      Building standard graphics on the door of the Premises and such portions of
      the
      Common Areas as Lessor shall reasonably deem appropriate;
      grant to any lessee the exclusive right to conduct any business as long as
      such
      exclusive right does not conflict with any rights expressly given
      herein; and to place such signs, notices or displays as Lessor reasonably deems
      necessary or advisable upon the roof, exterior of the Building or the
      Project or on pole signs in the Common Areas. Lessee agrees to sign any
      documents reasonably requested by Lessor to effectuate such rights. The
      obstruction of Lessee's view, air, or light by any structure erected in the
      vicinity of the Building, whether by Lessor or third parties, shall in no way
      affect this Lease or impose any liability upon Lessor.

     

    (b) Lessor
      also reserves the right to move Lessee to other space of comparable size in
      the
      Building or Project. Lessor must provide
      at
      least 45 days prior written notice of such move, and the new space must contain
      improvements of comparable quality to those contained within the Premises.
      Lessor shall pay the reasonable out of pocket costs that Lessee incurs with
      regard to such relocation, including the expenses of moving
      and
      necessary stationary revision costs. In no event, however, shall Lessor be
      required to pay an amount in excess of two months Base Rent. Lessee
      may
      not be relocated more than once during the term of this Lease.

     

    (c) Lessee
      shall not: (i) use a representation (photographic or otherwise) of the Building
      or Project or their name(s) in connection with Lessee's business; or (ii) suffer
      or permit anyone, except in emergency, to go upon the roof of the
      Building.

     

     42.
      Performance
      Under Protest. If
      at any
      time a dispute shall arise as to any amount or sum of money to be paid by one
      Party to the other under
      the
      provisions hereof, the Party against whom the obligation to pay the money is
      asserted shall have the right to make payment "under protest" and
      such
      payment shall not be regarded as a voluntary payment and there shall survive
      the
      right on the part of said Party to institute suit for recovery of such
      sum.
      If it shall be adjudged that there was no legal obligation on the part of said
      Party to pay such sum or any part thereof, said Party shall be entitled to
      recover such sum or so much thereof as it was not legally required to pay.
      A
      Party who does not initiate suit for the recovery of sums paid "under protest"
      within 6 months shall be deemed to have waived its right to protest such
      payment.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    43.
      Authority;
      Multiple Parties; Execution

     

    (a) If
      either
      Party hereto is a corporation, trust, limited liability company, partnership,
      or
      similar entity, each individual executing this
      Lease
      on behalf of such entity represents and warrants that he or she is duly
      authorized to execute and deliver this Lease on its behalf. Each Party shall,
      within 30 days after request, deliver to the other Party satisfactory evidence
      of such authority.

     

    (b) If
      this
      Lease is executed by more than one person or entity as "Lessee", each such
      person or entity shall be jointly and severally
      liable hereunder. It is agreed that any one of the named Lessees shall be
      empowered to execute any amendment to this Lease, or other document ancillary
      thereto and bind all of the named Lessees, and Lessor may rely on the same
      as if
      all of the named Lessees had executed such document.

     

    (c) This
      Lease
      may be executed by the Parties in counterparts, each of which shall be deemed
      anoriginal and all of which together shall
      constitute one and the same instrument.

     

    44. Conflict.
      Any conflict between the printed provisions of this Lease and the typewritten
      or
      handwritten provisions shall be controlled by the typewritten
      or handwritten provisions.

     

    45. Offer.
      Preparation of this Lease by either party or their agent and submission of
      same
      to the other Party shall not be deemed an offer to lease
      to
      the other Party. This Lease is not intended to be binding until executed and
      delivered by all Parties hereto.

     

    46. Amendments.
      This
      Lease
      may be modified only in writing, signed by the Parties in interest at the time
      of the modification. As long as they do
      not
      materially change Lessee's obligations hereunder, Lessee agrees to make such
      reasonable nonmonetary modifications to this Lease as may be reasonably required
      by a Lender in connection with the obtaining of normal financing or refinancing
      of the Premises.

     

    47. Waiver
      of
      Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY
      IN
      ANY ACTION OR PROCEEDING
      INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT.

     

    48. Mediation
      and Arbitration of Disputes. An Addendum requiring the
      Mediation and/or Arbitration of all disputes between the Parties and/or
      Brokers arising out of this Lease is attached to this Lease.

     

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

     

    ATTENTION:
      NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE
      ASSOCIATION OR BY ANY BROKER
      AS
      TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR
      THE
      TRANSACTION TO WHICH IT RELATES.
      THE PARTIES ARE URGED TO:

     

    1. SEEK
      ADVICE OF COUNSELAS TOTHE LEGALAND TAXCONSEQUENCES OF THIS LEASE.

     

    2. RETAIN
      APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES.
      SAID INVESTIGATION
      SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS
      SUBSTANCES, THE ZONING AND SIZE
      OF
      THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING
      SYSTEMS, COMPLIANCE WITH THE
      AMERICANS WITH DISABILITIES ACT AND THE SUITABILITY OF THE PREMISES FOR LESSEE'S
      INTENDED USE.

     

    WARNING:
      IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS
      OF THE LEASE MAY NEED TO BE
      REVISED
      TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES ARE
      LOCATED.

     

    The
      parties hereto have executed this Lease at the place and on the dates specified
      above their respective signatures.

    
       

      By
        LESSOR:

       

      Dolphinshire,
        L.P.

      A
        California limited partnership

       

       

      By: 
        Dolphinshire Partners, Inc. 

      Name
        Printed:
        a
        California corporation

      Title:
        Its
        authorized agent

      
 

      By: 
        /S/ Kevin S. Pitts

      Name
        Printed:
        Kevin S.
        Pitts

      Title:
        President

      Address:
        18818
        Teller Ave., Suite 200 Irvine, CA 92614

      

      Telephone:
        949.852.9230

      Facsimile:
        949.852.8924

      Federal
        ID No.________________________________

       

      Executed
        at: Irvine, CA 92606

      On:
        July
        15,
        2005

       

       

      By:
        LESSEE:

      

      New
        Motion, Inc.

      A
        Delaware
        Corporation

       

       

      By:

      Name
        Printed:_______________________________

      Title:_______________________________________

      
 

      By: 
        /S/ Allan Legator

      
        Name
          Printed: Allan Legator

        Title:
          CFO

      

      Address:
        10
        Corporate Park, Suite 315 Irvine, CA 92606

      

      Telephone:
        949-419-0262

      Facsimile:
        949-419-0268

      Federal
        ID No._______________________________

       

       

      LESSEE’S
        BROKER

      

      GVA
        DAUM

      

      Attn:
        Ron
        Blakeslee

      Address:
        4675
        MacArthur Ct. STE 220 Newport Beach, CA 92660

      Telephone:
        949-724-1900

      Facsimile:
        949-474-1771

       

    

    These
      forms are often modified to meet changing requirements of law and needs of
      the
      industry. Always write or call to make sure you are utilizing the most current
      form: AIR Commercial Real Estate Association, 700 South Flower Street, Suite
      600, Los Angeles, CA 90017. (213) 687-8777.

     

    ©Copyright
      1999-By AIR Commercial Real Estate Association.

     

    All
      rights reserved.

     

    No
      part of these works may be reproduced in any form without permission in
      writing.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    ADDENDUM
      TO STANDARD OFFICE LEASE

     

    This
      Addendum is attached and made a part of that certain Standard Multi-Tenant
      Office Lease-Gross
      (the "Lease") dated for reference purposes only as of this 6th
      day
      of
      July, 2005, by and between
      Dolphinshire, L.P., a California limited partnership ("Lessor") and New Motion,
      Inc., a California corporation ("Lessee").

     

    Lessor
      and Lessee hereby agree that notwithstanding anything contained in the Lease
      to
      the contrary,
      the provisions set forth below will be deemed to be part of the Lease and shall
      supersede,
      to the extent appropriate, any contrary provision in the Lease. All references
      in the Lease
      and
      in this Addendum to the Lease shall be construed to mean the Lease and the
      Exhibits to the
      Lease, as amended and supplemented by this Addendum. All terms used in this
      Addendum, unless
      specifically defined in this Addendum, shall have the same meaning as the terms
      used in the
      Lease.

     

    
      
        
          	50.	
                  Base
                    Rental Increases: Subject
                    to the provisions of Paragraph 53 herein, the monthly Base
                    Rent payable under Paragraph 1.5 of the Lease shall be adjusted
                    in
                    accordance with the
                    following schedule:

                

        

      

    

     

    September
      1, 2005 - September 30, 2005: $ 0.00

    October
      1, 2005 - September 30, 2006: $
      9,834.40 per month

    October
      1, 2006 - September 30, 2007: $10,093.20
      per month

    October
      1, 2007 - September 30, 2008: $10,352.00
      per month

     

    
      	51.	
              Security
                Deposit/Prepaid Rent:

            

    

     

    
      	
            	51.1	
              Lessor
                and Lessee acknowledge that concurrent with the execution of the
                Lease,
                Lessee
                shall provide Lessor with a Security Deposit in the amount of $20,704.00
                and two
                (2) months prepaid rent ("Prepaid Rent") in the amount of $20,704.00.
                Notwithstanding the provisions of Paragraph 50 of the Addendum to
                Lease,
                the Prepaid
                Rent is comprised of Base Rent for months 36 & 37 of the initial Lease
                term (August
                & September, 2008, $10,352.00 per month). The Prepaid Rent shall be
                considered
                a part of the Security Deposit held by Lessor in accordance with
                Paragraph
                5 of the Lease. Therefore, as of the Commencement Date, the Security
                Deposit will be $41,408.00.

            

    

     

    
      	
            	51.2	
              Notwithstanding
                the provisions contained in Paragraph 5 of the Lease, Lessor hereby
                agrees
                to provide Lessee with the opportunity to reduce the Security Deposit
                held
                by Lessor
                by receiving a rebate ("Rebate"), distributed in the form of a rental
                credit only, for
                the months of August, 2008, and September, 2008. Each rebate shall
                be
                granted to
                Lessee only if all of the following terms and conditions have been
                met:

            

    

     

    
      
        
          	
                	(a)	
                  Lessee
                    is not then in material default of any portion of the Lease beyond
                    any
                    applicable
                    cure periods; and

                

        

         

      

    

    
      
        
          	
                	
                  (b)

                	
                  Lessee
                    has not sub-leased or assigned any portion of the Premises without
                    Lessor's prior written
                    consent.

                

        

      

    

     

    
      	
            	51.3	
              If
                all of these conditions are met and each Rebate is granted to Lessee
                by
                Lessor, Lessor
                shall continue to hold the remaining balance of the Security Deposit
                (the
                sum
                of $20,704.00) throughout the initial term of the Lease. In the event
                these conditions have not been met in any month of the first thirty-five
                (35) full calendar months of the Lease term, no Rebate will be offered
                to
                Lessee and Lessor shall continue
                to hold the Security Deposit for the duration of the initial term
                of the
                Lease
                in accordance with Paragraph 5
                thereof.

            

    

     

    
      	52.	
              Building
                Hours: Lessor,
                as part of Operating Expenses as defined in Paragraph 4.2 of the
                Lease,
                shall furnish building standard utilities and HVAC services Monday
                through
                Friday from 8:00 a.m. to 6:00 p.m. and on Saturdays from 9:00 a.m.
                to 1:00
                p.m. (if requested in advance in accordance with building standard
                operating procedures). Any requirement by Lessee
                for additional HVAC services shall be billed directly to Lessee at
                the
                building standard
                rate of forty dollars ($40.00) per hour, subject to change in Lessor's
                reasonable discretion. Lessor shall provide, as a part of Operating
                Expenses, reasonable amounts of electricity
                for normal lighting and business machines twenty-four (24) hours
                per day,
                seven
                (7) days per week. Lessee shall have reasonable access to the building
                and
                Premises
                twenty-four (24) hours per day, seven (7) days per week, fifty-two
                (52)
                weeks per
                year.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Addendum
      to Standard
      Office Lease by and between Dolphinshire,
      LP., as "Lessor" and

    New
      Motion, Inc., as "Lessee"

    Page
      2 of 5

     

    
      	53.	
              Early
                Access/Possession:

            

    

     

    
      	
            	53.1	
              The
                term of the Lease for the Premises shall be for a period of thirty-seven
                (37) months
                commencing on September 1, 2005, and expiring on September 30,
                2008.

            

    

    
       

      
        	
              	53.2	
                
                  Upon
                    full execution of the Lease and delivery of the required insurance
                    certificates,
                    Lessor shall allow Lessee to install its telecom and computer
                    cable
                    network "pre-wire" concurrent with the construction of the tenant
                    improvements by Lessor. The "pre-wire" cabling work shall be
                    coordinated
                    through Lessor's construction
                    manager only. Upon substantial completion of the tenant improvement
                    work, Lessee shall be granted the right to complete the installation
                    of
                    all
                    telephone and computer equipment and to install its furniture,
                    fixtures
                    and equipment
                    ("FF&E"). In the event Lessor has completed all of the tenant
                    improvements
                    and Lessee has installed all of its FF&E prior to the Commencement
                    Date, Lessee shall be allowed to occupy the Premises through
August
                    31, 2005, at no charge subject to the provisions of Paragraphs
                    3.2 and 3.3
                    of
                    the Lease.

                

              

      

      
        
           

          
            	
                  	53.3	
                    
                      
                        In
                          the event Lessor is unable to deliver possession of the
                          Premises to Lessee
                          on or before September 1, 2005, the Early Possession Date
                          shall be on the
                          date that possession
                          is tendered ("Possession Date") to Lessee (which shall
                          be upon
                          substantial
                          completion of the tenant improvements). If the Possession
                          Date of the
                          Premises is not at the beginning of a full calendar month,
                          the Base Rent
                          for the remaining
                          partial month of occupancy shall be pro-rated at the rate
                          of $1.90 per
                          RSF
                          per month. The pro-ration shall be based on the number
                          of days in the
                          calendar
                          month that possession is tendered. The thirty-seven (37)
                          month term of
                          the
                          Lease will then commence on the first day of the first
                          calendar month
                          following
                          the Possession
                          Date.

                      

                    

                  

          

        

      

    

     

    
      	54.	
              Tenant
                Improvements:

            

    

    
      
        
           

          
            	
                  	54.1	
                    
                      
                        
                          Lessor,
                            at Lessor's sole cost and expense using building standard
                            materials with
                            colors
                            chosen by Lessee (one (1) color for each applicable item),
                            shall complete
                            the
                            tenant improvements ("Improvements") to the Premises
                            as depicted on
                            Exhibit "A"
                            including all related electrical and mechanical changes
                            required as a
                            result thereof.
                            Lessor shall also repaint all existing painted drywall
                            surfaces and
                            install new
                            building standard carpet and base (VCT where applicable)
                            throughout the
                            Premises.
                            The costs for Lessee's telecom and data cabling shall
                            be Lessee's
                            responsibility
                            and shall not be included as a part of the Improvements
                            completed
                            by
                            Lessor.

                        

                      

                    

                  

          

        

      

      
        
          
             

            
              	
                    	54.2	
                      
                        
                          
                            In
                              the event Lessee requests a change in the scope of
                              the Improvements
                              (subsequent
                              to the execution of the Lease) that formed the basis
                              for Lessor's
                              Improvement costs as defined in Exhibit "A" and Paragraph
                              54.1 herein,
                              Lessor shall
                              prepare a change order ("Change Order") and submit
                              it to Lessee for
                              approval prior
                              to any additional work being completed. The Change
                              Order will identify the
                              amount of any increase in the cost of the Improvements
                              and as to any delay
                              such change would cause in the construction of the
                              Improvements, which
                              delay would constitute a Lessee Delay. Lessee shall
                              approve or disapprove
                              such Change Order within
                              two (2) business days of its receipt thereof and notify
                              Lessor
                              accordingly. In
                              the event Lessee approves such change, Lessee shall
                              pay to Lessor the sum
                              specified in the change order within five (5) days
                              of Lessee's acceptance
                              thereof. If the Change Order approved by Lessee extends
                              the completion
                              date of the Improvements beyond the scheduled Commencement
                              Date, the
                              Commencement Date
                              will remain unchanged and Lessee shall be obligated
                              to pay Base Rent as of
                              the
                              scheduled Commencement Date (September 1, 2005). Lessor
                              shall have the
                              right
                              to decline Lessee's request for a change in the approved
                              plans if the
                              change is inconsistent
                              with the requirements of this section, building standards
                              or if the
                              change
                              would unreasonably delay construction of the
                              Improvements.

                          

                        

                      

                    

            

          

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

     

    Addendum
      to Standard
      Office Lease by and between Dolphinshire,
      LP., as "Lessor" and

    New
      Motion, Inc., as "Lessee"

    Page
      3 of 5

     

    
      	
              55.

            	
              Interior
                Signage: Lessor
                shall install, at Lessee's sole cost and expense, building standard
                suite and directory signage in accordance with Lessor's signage program.
                All signage including windows, doors, outdoor boards or any type
                of
                promotional signage visible
                from the common areas shall not be installed or displayed at any
                time
                without the prior
                written consent of Lessor.

            

    

     

    
      	
              56.

            	
              Common
                Area Operating Expenses: Notwithstanding
                anything herein to the contrary, Lessor
                shall have the right to exclude from Base Year Operating Expenses
                cost
                items of a nonrecurring nature or that would otherwise not reasonably
                be
                expected to be included as Operating
                Expenses in subsequent years to which such Base Year will be compared.
                Accordingly,
                Lessor shall exclude from all future Base Year Operating Expenses
                cost
                items
                of a nonrecurring nature or that would otherwise not reasonably be
                expected to be included as Operating Expenses. Lessee shall have
                sixty
                (60) days following receipt of a detailed
                reconciliation statement for Operating Expenses within which to deliver
                a
                written objection
                to Lessor if Lessee objects to any cost items covered by such statement.
                If Lessee
                fails to deliver such a written objection to Lessor within such sixty
                (60)
                day period, Lessee
                shall conclusively be deemed to have waived any right to object to
                the
                cost items covered
                by such statement.

            

    

     

    
      	
              57.

            	
              Kitchen
                Maintenance: Notwithstanding
                the provisions of Paragraph 11.1 of the Lease,
                Lessee, at Lessee's sole cost and expense, shall be responsible throughout
                the initial
                term of the Lease and any extensions thereof, for the maintenance,
                repair
                and/or replacement
                of all kitchen appliances including the sink, faucet, garbage disposal,
                water heater
                and cabinets. Lessee shall also be responsible for the maintenance
                of the
                sewer drain line that serves the sink from this appliance to the
                second
                floor sewer mainline. "Maintenance"
                is defined as maintaining adequate drainage from the sink to the
                second
                floor
                sewer mainline including the cost to hire a plumber to clear any
                blockages
                in the line that
                may occur from time to time. Lessee shall be 100% liable and carry
                adequate insurance
                (in accordance with Paragraph 8 of the Lease) for any and all damages
                that
                occur
                anywhere in the Premises or the Building from water damage due to
                any
                malfunction
                or problem with the sink or the respective drain line for same, regardless
                of the
                cause.

            

    

     

    
      	
              58.

            	
              Cabling:
                Subject
                to Paragraph 7.4 (b) of the Lease, upon expiration of the Lease and
                Lessee's
                surrender of the Premises, Lessee, at Lessor's discretion and at
                Lessee's
                sole cost and
                expense, shall remove all of its voice and data cabling located within
                the
                Premises, including
                the plenum area. Any damage caused to the Premises as a result of
                said
                removal shall
                be corrected by Lessee prior to its departure from the
                Premises.

            

    

     

    
      	
              59.

            	
              Americans
                with Disabilities Act: Notwithstanding
                any part of the Lease to the contrary,
                and to the best of Lessor's actual knowledge, Lessor warrants that,
                as of
                the Commencement
                Date, the Project is in compliance with all requirements of the Americans
                with
                Disabilities Act and Title 24 of the California Administrative Code
                (i.e.
                state building code)
                (hereinafter collectively referred to as "ADA") applicable hereto.
                Lessee
                shall not be
                responsible for any ADA non-compliant conditions that existed in
                the
                Project prior to the
                Commencement Date of the Lease based on the laws, regulations, ordinances,
                and policies in effect prior to the Commencement Date of the Lease.
                Lessee
                agrees that it shall
                be solely responsible for any and all costs associated with any ADA
                required improvements
                to the Premises and Project required as a result of any improvements
                or
                modifications
                to the Premises completed by Lessee during the term of the Lease.
                Subject
                to the provisions of Paragraph 2.3 of the Lease, Lessee agrees that
                it
                shall be responsible for
                its pro-rata share of all costs for any ADA required improvements
                to the
                Project resulting
                from a change in ADA requirements enacted after the Commencement
                Date. If
                any
                ADA improvements to the project are required after the Commencement
                Date
                as a direct result of Lessee's occupancy and/or use requirements
                of the
                Project, then Lessee shall
                be responsible for one hundred percent (100%) of the costs related
                to
                complete the required
                ADA improvements.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Addendum
      to Standard Office Lease by and between Dolphinshire,
      LP., as "Lessor" and

    New
      Motion, Inc., as "Lessee"

    Page
      4 of 5

    
       

      
        	
                60.

              	
                
                  Option
                    to Extend:

                

              

      

      
        
          
             

            
              	 	60.1	
                      
                        
                          
                            
                              Provided
                                Lessee is not in default of its Lease beyond any
                                applicable cure periods
                                and
                                Lessee has not subleased or assigned any portion
                                of the Premises (without
                                Lessor's prior written consent) at the time of its
                                exercise, Lessor hereby
                                grants to Lessee one (1), three (3) year option to
                                extend the term of the
                                Lease ("Option to Extend").
                                Lessee shall be required to give Lessor not more
                                than nine (9) and not
                                less
                                than six (6) full calendar months advance written
                                notice (from the date
                                that the Option
                                period would commence) of its intent to exercise
                                the Option to Extend.
                                The
                                Base Rent during the Option period shall be at the
                                then prevailing fair
                                market value
                                plus reasonable annual increases but in no event
                                less than $2.00 per RSF.
                                The
                                exercise of the Option to Extend by Lessee shall
                                not automatically entitle
                                Lessee
                                to any tenant improvement or refurbishment
                                allowance.

                            

                          

                        

                      

                    

            

          

        

        
          
            
              
                
                  
                    
                       

                      
                        	 	60.2
                                	
                                
                                  
                                    
                                      
                                        
                                          The
                                            term "Fair Market Value" (FMV) shall
                                            mean the annual amount per rentable
                                            square
                                            foot that a willing, comparable renewal
                                            Lessee would pay and a willing,
                                            comparable Lessor of a similar type project/building
                                            would accept at arm's
                                            length for
                                            similar space in the Westlake Village
                                            area, giving appropriate
                                            consideration to the following matters:
                                            (i) annual rental rates per
                                            rentable square foot; (ii) the type of
                                            escalation clauses (including, but without
                                            limitation, operating expenses,
                                            real estate
                                            taxes, and CPI) and the extent of liability
                                            under the escalation clauses
                                            (i.e., whether
                                            determined on a "net lease" basis or
                                            by increases over a particular base
                                            year
                                            or base dollar amount); (iii) rent abatement
                                            provisions reflecting free
                                            rent and/or
                                            no rent during the lease term; (iv) length
                                            of lease term; (v) size and
                                            location of premises being leased; (vi)
                                            amount of tenant improvement
                                            allowance; and (vii) other
                                            generally applicable terms and conditions of tenancy
                                            for similar space,
                                            including
                                            any improvement or refurbishment allowances.
                                            The FMV may also designate
                                            periodic rental increases and/or similar
                                            economic adjustments. The
                                            FMV
                                            shall be the FMV in effect as of the
                                            beginning of the applicable option
                                            period,
                                            even though the determination may be
                                            made in advance of that date, and
                                            the
                                            parties may use recent trends in rental
                                            rates in determining the proper
                                            FMV as of the beginning of the option
                                            period.

                                        

                                      

                                    

                                  

                                

                              

                      

                    

                  

                  
                    
                      
                        
                          
                            
                              
                                 

                                
                                  	 	60.3	
                                          
                                            
                                              
                                                
                                                  
                                                    Within
                                                      fifteen (15) calendar days
                                                      of the date that Lessor and
                                                      Lessee mutually
                                                      agree on
                                                      the FMV (after Lessee has properly
                                                      exercised its Option to Extend),
                                                      Lessor
                                                      shall provide
                                                      Lessee with an appropriate
                                                      amendment to the Lease that
                                                      documents the
                                                      newly
                                                      extended term and conditions
                                                      thereof. Lessee shall execute
                                                      the amendment
                                                      to the
                                                      Lease within fifteen (15) calendar
                                                      days of the date that the amendment
                                                      is
                                                      delivered
                                                      to Lessee. In the event Lessee
                                                      fails to execute the amendment
                                                      within the
                                                      proscribed time period, the
                                                      Option to Extend shall be rendered
                                                      null and
                                                      void.

                                                  

                                                

                                              

                                            

                                          

                                        

                                

                              

                            

                            
                              
                                
                                  
                                    
                                      
                                         

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      	
              61.

            	
              Arbitration:
                In
                the event of any material dispute arising under or resulting from
                this
                Lease
                Agreement, its making, performance or interpretation, Lessor and
                Lessee
                shall, in good faith, attempt to resolve the dispute through negotiations.
                If Lessor and Lessee are unable to resolve any material dispute through
                such negotiations, they agree to have the dispute
                mediated by an experienced mediator or mediators. If Lessor and Lessee
                are
                unable
                to resolve any material dispute through such mediation, they agree
                to have
                the dispute
                submitted to and resolved by binding arbitration in accordance with
                the
                Commercial
                Arbitration Rules of Judicate West (in Santa Ana, CA) which are in
                effect
                at the
                time the demand for arbitration is filed by an arbitrator selected
                by
                counsel for the parties.
                If an action is brought by any party to enforce any clause under
                this
                Lease Agreement, the prevailing party shall be entitled to all reasonable
                costs incurred in connection
                with such action, including reasonable attorney's
                fees.

            

    

     

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    Addendum
      to Standard
      Office Lease by and between Dolphinshire,
      LP., as "Lessor" and

    New
      Motion, Inc., as "Lessee"

    Page
      5 of 5

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Addendum to Standard
      Office Lease as of the date set forth below:

    
      	 	 	 
	
              
                "LESSOR" 

                 

              

              Dolphinshire,
                L.P. 

              a
                California limited partnership 

            	 
 	
              "LESSEE"

               

               

              New Motion, Inc.

              a Delaware corporation

            
	
               

              By:
                Dolphin Partners Inc,

              a
                California Corporation ______
                agent

              Its:
                Authorized Agent

            	 	 
	
               

              By: 
                

            	 	By:  
	
              
                
                  

                

              

              Kevin
                Pitts, President

              Date:
                7/15/05 

            	 	
              
                

              

              Allan
                Legator, CFO

              Date:
                7/12/05

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    STANDARD
      OFFICE LEASE

    FLOOR
      PLAN

     

    

     

    EXHIBIT
      "A"

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

     

    RULES
      AND REGULATIONS FOR 

    STANDARD
      OFFICE LEASE

     

    EXHIBIT
      "13"

     

    Dated:
      July
      6,
      2005

     

    By
Dolphinshire,
      L.P. as "Lessor" & New Motion, Inc. as "Lessee"
and Between
      _______________________________

     

    GENERAL
      RULES

     

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

     

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

     

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

     

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

     

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

     

    6. Lessee
      shall not alter any lock or install new oradditional locks or bolts without
      Lessor's
      prior
      written consent

     

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

     

    8. Lessee
      shall not deface the walls, partitions or other surfaces of the Premises or
      Project

     

    9. Lessee
      shall not sufferor permit anything in or around the Premises or Building that
      causes excessive vibration or floor loading in any partof the
      Project.

     

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

     

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

     

    12. Lessor
      reserves the right to close and lock the Building on Saturdays, Sundays and
      Building Holidays, and on other days between the hours
      of 6:
      00 P.M.
      and 7:00
      A.M.
      of
      the following day. If Lessee uses the Premises during such periods, Lessee
      shall
      be responsible
      for securely locking any doors it may have opened for entry.

     

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

     

    14. No
      window
      coverings, shades or awningsshall be installed or used by Lessee.

     

    15. No
      Lessee,
      employee or invitee shall go uponthe roof ofthe Building.

     

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

     

    17. Lessee
      shall not use any method ofheating or airconditioning other than as provided
      or
      approved
      by Lessor.

     

    18. Lessee
      shall not install, maintain or operate any vending machines upon, the Premises
      without Lessors written consent which shall riot be unreasonably
      withheld.

     

    19. The
      Premises shall not be usedfor lodging or manufacturing, cooking or food
      preparation.

     

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

     

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

     

    22. Lessee
      assumes all risks from theft or vandalism and agrees tokeep its Premises locked
      as may be required.

     

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

     

    24. Smoking
      is
      permitted in designated areas outside of the building and courtyard area
      or a minimum
      of
      25 feet away
      from
      any
access
      point
      to
      the building.

     

    25. Fire
      stairwells are to be used for emergency
      purposes
      only.

     

    PARKING
      RULES

     

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

     

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

     

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

     

    4. Lessor
      reserves the right to refuse the use
      of the
      parking lot to any person or entity that willfully
      refuses
      to comply with the applicable rules, regulations, laws and/or
      agreements.

     

    
      5.
        Lessor reserves the right to relocate all or a part of parking spaces from
        floor
        to floor, within one floor, and/or to reasonably adjacent offsite location(s),
        and to reasonably allocate them between compact and standard size spaces,
        as
        long as the same complies with applicable laws, agreements.

    

     

    
      
         6. Users
          of
          the parking area willobey all posted signs and park only in theareas designated
          for vehicle parking.

      

    

     

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

     

    9. The
      maintenance, washing, waxing or cleaning of vehiclesin the parking structure
      or
      Common Areas is prohibited.

     

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

     

    11. Lessor
      reserves the right to modify these rules and/or adopt such other reasonable
      and
      non-discriminatory rules and regulations as it may deem necessary for the proper
      operation of the parking area. Overnight parking anywhere in the common
area,
      parking
      lot is strictly prohibited.

     

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

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