Document:

exv10w7

 

EXHIBIT 10.7

OFFICE LEASE

PACIFIC TELESIS CENTER

TELESIS TOWER

San Francisco, California

LANDLORD:

POST-MONTGOMERY ASSOCIATES

TENANT:

THOMAS WEISEL PARTNERS LLC

 

 

OFFICE LEASE

PACIFIC TELESIS CENTER

TELESIS TOWER

San Francisco, California

BASIC LEASE INFORMATION

	 	 	 
	Lease Date:

	 	December 7, 1998
	 
	 	 
	Landlord:

	 	Post-Montgomery Associates,

a California general partnership
	 
	 	 
	Landlord’s Address:

	 	One Montgomery Street, 13th Floor

San Francisco, California 94104

Attention: General Manager
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Cassidy, Cheatham, Shimko &
Dawson

20 California Street, Suite 500

San Francisco, California 94111

Attention: Stephen K. Cassidy
	 
	 	 
	Tenant:

	 	Thomas Weisel Partners LLC, a Delaware limited

liability company
	 
	 	 
	Tenant’s Address:

	 	One Montgomery Street, 38th Floor

San Francisco, California 94104

Attention: Legal Department
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	O’Melveny & Myers LLP

Embarcadero Center West

275 Battery Street

San Francisco, California 94111

Attention: Peter T. Healy
	 
	 

    	 
	Premises:

	 	48,114 square feet of Rentable Area

 

 

	 	 	 
	 

	 	located on the 36th, 37th and 38th Floors, as shown on the Floor Plan(s)attached to this Lease
as Exhibit A
	 
	 	 
	Term:

	 	Eight (8) years
	 
	 	 
	Commencement Date:

	 	March 17, 1999
	 
	 	 
	Expiration Date:

	 	March 16, 2007
	 
	 	 
	Base Rent:
	 	 

March 17, 1999 through March 16, 2000:  $212,503.50 per month

March 17, 2000 through March 16, 2001:  $216,513.00 per month

March 17, 2001 through March 16, 2002:  $220,522.50 per month

March 17, 2002 through March 16, 2003:  $224,532.00 per month

March 17, 2003 through March 16, 2004:  $228,541.50 per month

March 17, 2004 through March 16, 2005:  $232,551.00 per month

March 17, 2005 through March 16, 2006:  $236,560.50 per month

March 17, 2006 through March 16, 2007:  $240,570.00 per month

	 	 	 
	Base Year:

	 	 The calendar year in which the
Commencement Date falls
	 
	 	 
	Tenant’s
Percentage Share:

	 	 7.33%
	 
	 	 
	Tenant’s Highrise
Percentage Share:

	 	 14.31%
	 
	 	 
	Tenant’s Allocable
Share:

	 	 Tenant’s share of the condenser water for the existing supplemental cooling system serving
Floors 28-38 of the Building, allocable to the
Premises comprised of Floors 36-38, and if
applicable Floor 35, all as determined by
Landlord in its sole discretion from time to time
	 
	 	 
	Permitted Use:

	 	 General executive and administrative offices
consistent with first-class office buildings in
the San Francisco Downtown Financial District
	 
	 	 
	Security Deposit:

	 	 $212,503.50 upon the Lease Date, increased to $637,510.50 upon the

 

 

	 	 	 
	 

	 	 Commencement Date, subject to the Addendum
	 
	 	 
	Expansion

Premises:
	 	 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Tenant’s
	 	 	 	 	Tenant’s	 	Highrise
	 	 	 	 	Percentage	 	Percentage
	Floor	 	Rentable Area	 	Share	 	Share
	22
	 	18,923	 	2.88%	 	N/A
	23
	 	18,923	 	2.88%	 	N/A
	24
	 	18,923	 	2.88%	 	N/A
	25
	 	18,923	 	2.88%	 	N/A
	35
	 	19,065	 	2.90%	 	5.76%

	 	 	 
	Extended Term:

	 	 One (1) period of five (5) years
	 
	 	 
	Antennas:

	 	 The 39-inch rooftop microwave dish and 4-foot whip
antenna which may be located in the Antenna Areas,
including all replacements thereof effected by Tenant
from time to time.
	 
	 	 
	Antenna Areas:

	 	 Those areas of the roof of
the Complex shown on Exhibit
A-1 where the Antennas may be located.
	 
	 	 
	Antenna Fee:

	 	 $1,000.00 per month for each Antenna Area (the
“Initial Antenna Fee”), which Initial
Antenna Fee shall be increased as of the first
anniversary of the Commencement Date, and thereafter
the Antenna Fee then in effect shall be adjusted on
each subsequent anniversary date of the Commencement
Date, by an amount equal to five percent (5%) of such
Antenna Fee.
	 
	 	 
	Generator:

	 	 The generator which may be located in the Generator
Area, including all replacements thereof effected by
Tenant from time to time.

 

 

	 	 	 
	Generator Area:

	 	 The portion of the Complex where the Generator may be
located.
	 
	 	 
	Building Directory
Spaces:

	 	 48
	 
	 	 
	Brokers:
	 	 
	 
	 	 
	Landlord’s Broker:

	 	 Cushman & Wakefield of California, Inc.

 

 

	 	 	 
	     Tenant’s Broker:

	 	 Shorenstein Realty Services

Exhibits and Addendum:

	 	 	 	 	 
	 

	 	Exhibit A:
	 	Floor Plan(s) of Premises
	 

	 	Exhibit A-1:
	 	Location of Antenna Areas
	 

	 	Exhibit B:
	 	Existing Expansion Premises Lease Terms
	 

	 	Exhibit C:
	 	Rules and Regulations of the Complex
	 

	 	Exhibit D:
	 	Form Letter of Credit
	 

	 	Exhibit E
	 	Tenant’s Signage
	 

	 	Addendum:
	 	Tenant Work Letter

 

 

TABLE OF CONTENTS

Page

	 	 	 
	1.	 	Definitions

	 	 	1.1. Terms Defined

	 	 	1.2. Basic Lease Information

	 	 	1.3. Effect of Certain Defined Terms

	 	 	 

	2.	 	Lease of Premises, Antenna Areas and Generator Area; Option to Lease Expansion
Premises

	 	 	2.1. Premises

	 	 	2.2. Antennas and Antenna Areas

	 	 	2.3. Lease for Generator Area

	 	 	2.4. Expansion of Premises

	 	 	2.5. Right of First Refusal and Right of First Offer for 35th Floor

	 	 	 

	3.	 	Term; Condition and Acceptance of Premises

	 	 	3.1. Term and Delivery

	 	 	3.2. Extension

	 	 	Determination of Fair Market Renewal Rent

	 	 	 

	4.	 	Rent

	 	 	4.1. Obligation to Pay Base Rent

	 	 	4.2. Manner of Rent Payment

	 	 	4.3. Additional Rent

	 	 	4.4. Late Payment of Rent; Interest

	 	 	4.5. Lease Net of all Costs and Expenses Beyond Base Year

	 	 	 

	5.	 	Calculation and Payments of Escalation Rent

	 	 	5.1. Payment of Estimated Escalation Rent

	 	 	5.2. Escalation Rent Statement and Adjustment

	 	 	5.3. Proration for Partial Year

	 	 	5.4. Tenant Audit Rights With Respect to Escalation Rent

	 	 	 

	6.	 	Impositions Payable by Tenant

	 	 	 

	7.	 	Use of Premises

	 	 	7.1. Permitted Use

	 	 	7.2. Prohibited Uses

	 	 	7.3. Compliance With Requirements

	 	 	7.4. No Nuisance

	 	 	7.5. Compliance With Environmental Laws; Use of Hazardous Materials

 

 

Page

	 	 	 
	8.	 	Building Services

	 	 	8.1. Maintenance of Complex

	 	 	8.2. Building-Standard Services

	 	 	8.3. Interruption or Unavailability of Services

	 	 	8.4. Tenant’s Use of Excess Electricity and Water; Premises Occupancy Load

	 	 	8.5. Provision of Additional Services

	 	 	8.6. Standards With Respect to Certain Services; Availability of Certain
Building Installations

	 	 	 

	9.	 	Maintenance of Premises

	 	 	 

	10.	 	Alterations to Premises

	 	 	10.1. Landlord Consent; Procedure

	 	 	10.2. General Requirements

	 	 	10.3. Removal of Alterations

	 	 	 

	11.	 	Liens

	 	 	 

	12.	 	Damage or Destruction

	 	 	12.1. Obligation to Repair

	 	 	12.2. Landlord’s Election

	 	 	12.3. Cost of Repairs

	 	 	12.4. Damage at End of Term

	 	 	12.5. Waiver of Statutes

	 	 	 

	13.	 	Eminent Domain

	 	 	13.1. Effect of Taking

	 	 	13.2. Condemnation Proceeds

	 	 	13.3. Restoration of Premises

	 	 	13.4. Taking at End of Term

	 	 	13.5. Tenant Waiver

	 	 	 

	14.	 	Insurance

	 	 	14.1. Liability Insurance

	 	 	14.2. Landlord Casualty Insurance

	 	 	14.3. Tenant Casualty Insurance

	 	 	14.4. Form of Policies

	 	 	 

	15.	 	Waiver of Subrogation Rights

	 	 	 

	16.	 	Tenant’s Waiver of Liability and Indemnification

	 	 	16.1. Waiver and Release

	 	 	16.2. Indemnification of Landlord

	 	 	16.3. Indemnification of Tenant

	 	 	 

	17.	 	Assignment and Subletting

	 	 	17.1. Compliance Required

 

 

Page

	 	 	 
	 	 	17.2. Request by Tenant; Landlord Response

	 	 	17.3. Conditions for Landlord Approval

	 	 	17.4. Costs and Expenses

	 	 	17.5. Payment of Excess Rent and Other Consideration

	 	 	17.6. Assumption of Obligations; Further Restrictions on Subletting

	 	 	17.7. No Release

	 	 	17.8. Right to Assign or Sublet without Landlord’s Consent

	 	 	17.9. No Encumbrance

	 	 	 

	18.	 	Rules and Regulations

	 	 	 

	19.	 	Entry of Premises by Landlord

	 	 	19.1. Right to Enter

	 	 	19.2. Tenant Waiver of Claims

	 	 	 

	20.	 	Default and Remedies

	 	 	20.1. Events of Default

	 	 	a. Nonpayment of Rent

	 	 	b. Unpermitted Assignment

	 	 	c. Abandonment

	 	 	d. Other Obligations

	 	 	e. Bankruptcy and Insolvency

	 	 	20.2. Tenant Cure Periods

	 	 	a. Nonpayment of Rent

	 	 	b. Other Obligations

	 	 	c. No Cure Period

	 	 	20.3. Remedies Upon Occurrence of Event of Default

	 	 	20.4. Damages Upon Termination

	 	 	20.5. Computation of Certain Rent for Purposes of Default

	 	 	20.6. Landlord’s Right to Cure Defaults

	 	 	20.7. Waiver of Forfeiture

	 	 	20.8. Remedies Cumulative

	 	 	 

	21.	 	Subordination, Attornment and Nondisturbance

	 	 	21.2. Nondisturbance

	 	 	 

	22.	 	Sale or Transfer by Landlord; Lease Non-Recourse

	 	 	22.1. Release of Landlord on Transfer

	 	 	22.2. Lease Nonrecourse to Landlord

	 	 	 

	23.	 	Estoppel Certificate

	 	 	23.1. Tenant’s Certificate

	 	 	23.2. Landlord’s Certificate

	 	 	23.3. Effect of Certificate

	 	 	 

	24.	 	No Light, Air, or View Easement

 

 

Page

	 	 	 
	25.	 	Holding Over

	 	 	 

	26.	 	Security Deposit

	 	 	26.1. Security Deposit

	 	 	26.2. Letter of Credit

	 	 	 

	27.	 	Waiver

	 	 	 

	28.	 	Notices; Tenant’s Agent for Service

	 	 	 

	29.	 	Tenant’s Authority

	 	 	 

	30.	 	Miscellaneous

	 	 	30.1. No Joint Venture

	 	 	30.2. Successors and Assigns

	 	 	30.3. Construction and Interpretation

	 	 	30.4. Severability

	 	 	30.5. Entire Agreement; Amendments

	 	 	30.6. Governing Law

	 	 	30.7. Litigation Expenses

	 	 	30.8. Standards of Performance and Approvals

	 	 	30.9. Brokers

	 	 	30.10. Memorandum of Lease

	 	 	30.11. Quiet Enjoyment

	 	 	30.12. Surrender of Premises

	 	 	30.13. Building Directory

	 	 	30.14. Name of Building; Address

	 	 	30.16. Arbitration of Fair Market Rent and Fair Market Renewal Rent

	 	 	30.18. Parking

	 	 	30.19. Signage

	 	 	30.20. Exhibits and Addenda

	 	 	30.21. Survival of Obligations

	 	 	30.22. Time of the Essence

	 	 	30.23. Waiver of Trial By Jury

 

 

OFFICE LEASE

          THIS LEASE is made and entered into by and between Landlord and Tenant as of the Lease Date.

          Landlord and Tenant hereby agree as follows:

     1. Definitions.

          1.1. Terms Defined. The following terms have the meanings set forth below. Certain
other terms have the meanings set forth elsewhere in this Lease.

               Additional Security: An unconditional written guarantee of each and every obligation
of Tenant under this Lease, in form and substance satisfactory to Landlord and its counsel, and
containing all customary waivers of suretyship and other defenses, delivered by an Affiliate of
Tenant in favor of Landlord.

               Affiliate: Any subsidiary or parent of a party, any subsidiary of a parent of a
party, any entity in which a party owns a majority interest, any entity with which a party may
merge or consolidate, or any entity to which a party sells or transfers all or substantially all of
its assets or transfers all or substantially all of its stock or other beneficial ownership
interests.

               Affiliate Net Worth: The net worth of an Affiliate of Tenant as of the time in
question, as evidenced by such Affiliate’s consolidated or unconsolidated audited statement
of financial condition with an unqualified accountant’s opinion, delivered to Landlord within
twenty (20) days after Landlord’s request at any time Tenant has determined to satisfy
Tenant’s Net Worth through the use of Additional Security (which Affiliate’s audited
statement of financial condition shall have been issued not more than fifteen [15] months prior to
the applicable event

 

 

under this Lease as to which such audited statement of financial condition is
provided to Landlord).

               Alterations: Alterations, additions or other improvements to the Premises made by or
on behalf of Tenant.

               Base Building Operating Expenses and Base Building Property Taxes: The
Building Operating Expenses and the Building Property Taxes paid or incurred by Landlord in the
Base Year.

               Building: The high-rise office portion of the Complex, commonly known as Telesis
Tower, including related Common Areas and the Complex parking garage.

               Building Operating Expenses: Operating Expenses allocable to the Building. Landlord
shall determine the allocation of Operating Expenses to the Building in accordance with its
operating principles and practices for the Complex, as determined by Landlord from time to time.
If less than ninety-five percent (95%) of the Rentable Area of the Building is occupied during the
Base Year or any subsequent calendar year during the Term, then actual Building Operating Expenses
for the Base Year and such subsequent calendar year shall be adjusted to reflect Landlord’s
reasonable estimate of Building Operating Expenses as if ninety-five percent (95%) of the entire
Rentable Area of the Building had been occupied.

               Building Property Taxes: Eighty-eight and Four Tenths Percent (88.4%) of Real Estate
Taxes, except that to the extent the Building, or a portion thereof, is separately assessed, then
one hundred percent (100%) of such separately assessed Real Estate Taxes.

               Common Areas: Those areas of the Complex designated by Landlord from time to time for
the nonexclusive use of occupants of the Complex, and their agents, employees, customers, invitees
and licensees, and other members of the public. Common Areas do not include the exterior windows
and

 

 

walls and the roof of the Complex, or any space in the Complex (including in the Premises) used
for common shafts, stacks, pipes, conduits, ducts, electrical or other utilities, telecommunication
systems, or other installations for Building systems serving the Complex.

               Comparable Buildings: The following buildings located in the Downtown Financial
District: One Market Plaza; 101 California Street; 555 California Street; Three Embarcadero
Center; and Four Embarcadero Center.

               Complex: The Land, all buildings and other improvements at any time located on the
Land, and all appurtenances related thereto, commonly known as Pacific Telesis Center.

               Encumbrance: Any ground lease or underlying lease, or the lien of any mortgage, deed
of trust, or any other security instrument now or hereafter affecting or encumbering the Complex,
or any part thereof or interest therein.

               Encumbrancer: The holder of the beneficial interest under an Encumbrance.

               Environmental Laws: All present and future statutes, ordinances, orders, rules and
regulations of all federal, state or local governmental agencies relating to the environment,
health and safety, or the use, generation, handling, emission, release, discharge, storage or
disposal of Hazardous Materials.

               Escalation Rent: Tenant’s Percentage Share of the total Dollar increase, if
any, in Building Operating Expenses as paid or incurred by Landlord in each calendar year, or part
thereof, after the Base Year, over the amount of Base Building Operating Expenses, and
Tenant’s Percentage Share of the total Dollar increase, if any, in Building Property Taxes
attributable to the tax year or years occurring in each such calendar year

 

 

over the Base Building
Property Taxes for the tax year or years occurring in the Base Year.

               Floor: The entire Rentable Area of any Floor in the Building.

               Galleria: The retail shopping center portion of the Complex, commonly known as The
Crocker Galleria, including related Common Areas and the Complex parking garage.

               Hazardous Materials: Petroleum, asbestos, polychlorinated biphenyls, radioactive
materials, radon gas or any chemical, material or substance now or hereafter defined as or included
in the definition of “hazardous substances”, “hazardous wastes”, “hazardous materials”,
“pollutants”, “contaminants”, “extremely hazardous waste”, “restricted
hazardous waste” or “toxic substances”, or words of similar import, under any Environmental Laws.

               Impositions: Taxes, assessments, charges, excises and levies, business taxes,
license, permit, inspection and other authorization fees, transit development fees, assessments or
charges for housing funds, service payments in lieu of taxes and any other fees or charges of any
kind at any time levied, assessed, charged or imposed by any Federal, state or local entity, (i)
upon, measured by or reasonably attributable to the cost or value of Tenant’s equipment, furniture,
fixtures or other personal property located in the Premises, or the cost or value of any
Alterations; (ii) upon, or measured by, any Rent payable hereunder, including any gross receipts
tax; (iii) upon, with respect to or by reason of the development, possession, leasing, operation,
management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises, or any
portion thereof; or (iv) upon this Lease transaction, or any document to which Tenant is a party
creating or transferring any interest or estate in the Premises. Impositions do not include
franchise, transfer,

 

 

inheritance or capital stock taxes (or any taxes in the nature thereof), or
income taxes measured by the net income of Landlord from all sources, unless any such taxes are
levied or assessed against Landlord as a substitute for, in whole or in part, any Imposition.

               Land: The parcel of land shown as Lots 4, 5, 6, 7, 8, 14, 15 and 16 on that certain
Parcel Map, filed February 13, 1981, at Page 6, in Book 19, of Parcel Maps, of the Official Records
of the City and County of San Francisco, California.

               Limited Alterations: Alterations which may (i) affect the structure of, or appearance
from the exterior of, any portion of the Complex, or Common Areas on a Floor, (ii) affect or
interfere with the Complex roof, walls, elevators, heating, ventilating, air conditioning,
electrical, plumbing, telecommunications, security, life safety or other Complex systems, or the
use and enjoyment by other tenants or occupants of the Complex of their premises, (iii) result in
the imposition on Landlord of any requirement to make any alterations or improvements to any
portion of the Complex (including handicap access and life safety requirements), or (iv) increase
the cost to clean, maintain or repair, or increase the cost to relet, the Premises.

               Operating Expenses: All actual costs of management, operation, ownership, maintenance
and repair of the Complex, including: (i) salaries, wages, bonuses, other compensation and all
payroll burden of employees, payroll, social security, worker’s compensation, unemployment
and similar taxes and impositions with respect to such employees, and the cost of providing
disability or other benefits imposed by law or otherwise with respect to such employees; (ii)
property management fees and expenses, including Landlord’s fees and expenses for any management
performed by Landlord instead of by a

 

 

third party manager; (iii) fair rental value and expenses for
property management and marketing offices in the Complex; (iv) electricity, natural gas, water,
waste disposal and recycling, sewer, heating, lighting, air conditioning and ventilating and other
utilities; (v) janitorial, maintenance, security, life safety and other services, such as alarm
service, window cleaning, elevator maintenance, landscaping and uniforms (and the cleaning and/or
replacement thereof) for personnel providing services; (vi) materials, supplies, tools and rental
equipment; (vii) license, permit and inspection fees and costs; (viii) insurance premiums and costs
(including earthquake and/or flood if so elected by Landlord), and the deductible portion of any
insured loss under Landlord’s insurance; (ix) sales, use and excise taxes; (x) legal,
accounting and other professional services for the Complex, including costs, fees and expenses of
contesting the validity or applicability of any law, ordinance, rule, regulation or order relating
to the Building; (xi) the cost of supplies and services such as telephone, courier services,
postage and stationary supplies; (xii) normal repair and replacement of worn-out equipment,
facilities and installations; (xiii) depreciation on personal property, including exterior window
draperies provided by Landlord and Common Area Floor coverings, and/or rental costs of leased
furniture, fixtures, and equipment; and (xiv) expenditures for capital improvements made at any
time to the Complex (A) that are intended in Landlord’s judgment as labor saving devices and which
Landlord believes will produce actual savings, or that are intended in Landlord’s judgment to
reduce or eliminate other Operating Expenses or to effect other economies in the operation,
maintenance, or management of the Complex, and which Landlord believes will actually effect such
reduction, elimination or economies, or (B) that are necessary or appropriate in Landlord’s
judgment for the

 

 

health and safety of occupants of the Complex, or (C) that are required under any
law, ordinance, rule, regulation or order which was not applicable to the Complex at the time it
was constructed, or (D) that are replacements of items which Landlord is obligated to maintain, all
amortized over such reasonable period as Landlord shall determine at an interest rate of ten
percent (10%) per annum, or, if applicable, the rate paid by Landlord on funds borrowed for the
purpose of constructing or installing such capital improvements. Operating Expenses do not
include: (1) Real Estate Taxes; (2) Impositions; (3) legal fees, brokers’ commissions or other
costs incurred in the negotiation, termination, extension of leases, or expansion or contraction of
premises under any leases, or in proceedings involving a specific tenant, or in the creation of an
Encumbrance, or in connection with a sale of the Building, including survey, legal fees and
disbursements, transfer stamps and appraisals, engineering and inspection reports associated with
the contemplated sale or Encumbrance; (4) depreciation, except as set forth above; (5) interest,
except as set forth above; (6) capital items, except as set forth above; (7) repairs or
improvements paid for with the proceeds of any insurance carried by Landlord (or which would have
been paid had Landlord carried the insurance to be carried under this Lease); (8) advertising and
promotional expenses incurred for the purpose of leasing space in the Building or promoting
patronage of the Building by invitees; (9) wages, salaries, reimbursable expenses, benefits and
other compensation of any personnel above the grade of the general manager of the Complex; (10) any
expense for which Landlord is entitled to be reimbursed by any tenant (including Tenant) as an
additional charge in excess of base rent and such tenant’s share of Building Operating Expenses;
(11) the cost of any special services incurred for the benefit of one or more tenants of the
Complex,

 

 

and not provided generally to all tenants of the Complex; (12) penalties or late fees
incurred by Landlord and not due to the failure of Tenant to pay any Rent; (13) costs incurred by
Landlord to cure any violation of Requirements with respect to Hazardous Materials due to the act
or neglect of Landlord, its agents or contractors; (14) the costs, expenses and fees of any asset
manager, investment or financial advisor, or investment banker, representing Landlord or any
partner or any other constituent member of Landlord; (15) Landlord’s internal overhead expenses,
including the cost of internal accounting and the cost of preparation of Landlord’s income tax or
information returns; and (16) the costs for utilities to service the Complex parking garage, the
premiums for insurance covering the Complex parking garage, and salaries, wages, bonuses,
retirement plan contributions or other compensation, and all payroll burden of employees engaged
directly in the operation of the Complex parking garage, and all payroll, social security, worker’s
compensation, unemployment, and similar taxes and impositions with respect to such employees, and
the cost of providing disability or other benefits imposed by law or otherwise with respect to such
employees. Building Operating Expenses shall be “net” so that they are reduced by the amount of
all recoupments, discounts, credits, reductions, allowances or the like actually received by
Landlord from third parties, on account of Building Operating Expenses, except that Landlord may
include in Building Operating Expenses the reasonable and actual costs and expenses, if any,
incurred by Landlord in obtaining such recoupments, discounts, credits, reductions, allowances or
the like. Subject to the provisions of this definition, the determination of Operating Expenses
shall be made by Landlord in accordance with generally accepted accounting principles and
practices, based on

 

 

the operating principles and practices of the Complex, consistently applied.

               Prime Rate: The rate charged by Wells Fargo Bank (or any other national bank
designated by Landlord) to its most credit-worthy customers for loans making reference to such
prime rate.

               Real Estate Taxes: Taxes, assessments and charges now or hereafter levied or assessed
upon, or with respect to, the Complex, or any personal property of Landlord used in the operation
thereof or located therein, or Landlord’s interest in the Complex or such personal property, by any
federal, state or local entity, including: (i) all real property taxes and general and special
assessments; (ii) charges, fees or assessments of any governmental agency with jurisdiction for
transit, public improvements, employment, job training, housing, day care, open space, art, police,
fire or other governmental services or benefits; (iii) service payments in lieu of taxes; (iv) any
tax, fee or excise of any governmental agency with jurisdiction on the use or occupancy of any part
of the Complex; (v) any tax, assessment, charge, levy or fee of any governmental agency with
jurisdiction for environmental matters, or as a result of the imposition of mitigation measures,
such as parking taxes, employer parking regulations or fees, charges or assessments due to the
treatment of the Complex, or any portion thereof or interest therein, as a source of pollution or
stormwater runoff; (vi) any other tax, fee or excise, however described, that may be levied or
assessed as a substitute for, or as an addition to, in whole or in part, any other Real Estate
Taxes; and (vii) consultants’ and attorneys’ fees and expenses incurred in connection with
proceedings to contest, determine or reduce Real Estate Taxes. Real Estate Taxes do not include:
(A) franchise, transfer, inheritance or capital stock taxes (or any taxes in the

 

 

nature thereof),
or income taxes measured by the net income of Landlord from all sources, unless any such taxes are
levied or assessed against Landlord as a substitute for, in whole or in part, any Real Estate
Tax;(B) penalties, fines, interest or charges due for late payment of Real Estate Taxes by
Landlord; and (C) taxes resulting from improvements made to the premises of any tenant in the
Complex (including Tenant), but only if and when, and to the extent, that Landlord includes such
taxes in Impositions under this Lease as to Tenant. If any Real Estate Taxes are payable, or may
at the option of the taxpayer be paid, in installments, such Real Estate Taxes shall, together with
any interest that would otherwise be payable with such installment, be deemed to have been paid in
installments, amortized over the maximum time period allowed by applicable law.

               Rent: Base Rent, Escalation Rent and all other additional charges and amounts payable
by Tenant in accordance with this Lease.

               Requirements: All laws, ordinances, rules, regulations, orders and other governmental
requirements applicable to the Complex, the Building and/or the Premises and imposed by a
governmental agency with jurisdiction; the provisions of any insurance policy carried by Landlord
or Tenant on any portion of the Complex, or any property therein; the requirements of any
independent board of fire underwriters; any directive or certificate of occupancy issued pursuant
to any law by any public officer or officers applicable to the Complex; the provisions of all
recorded documents affecting any portion of the Complex (including the Declaration of Crocker
Properties, Inc., regarding building electric lighting, recorded August 26, 1981, as modified by
Amended and Restated Declaration, dated December 5, 1984, recorded December 5, 1984); and all life
safety

 

 

programs, procedures and rules from time to time or at any time implemented or promulgated
by Landlord.

               San Francisco Downtown Financial District: That portion of the City and County of San
Francisco, California, located within the area from the intersection of Kearny Street and Market
Street, along Kearny Street to Washington Street, along Washington Street to The Embarcadero, along
The Embarcadero to Howard Street, along Howard Street to Spear Street, along Spear Street to Market
Street, and along Market Street to Kearny Street.

               Tenant Net Worth: The net worth of Tenant as of the time in question, as evidenced by
Tenant’s consolidated or unconsolidated audited statement of financial condition with an
unqualified accountant’s opinion, delivered to Landlord within twenty (20) days after
Landlord’s request with respect to any provision of this Lease which requires Tenant to
satisfy a net worth test (which Tenant’s audited statement of financial condition shall have
been issued not more than fifteen [15] months prior to the applicable event under this Lease as to
which such audited statement of financial condition is provided to Landlord).

               Wattage Allowance: 1 kilowatt hour per month per square foot of Rentable Area in the
Premises.

          1.2. Basic Lease Information. The Basic Lease Information is incorporated into and
made a part of this Lease. Each reference in this Lease to any Basic Lease Information shall mean
the applicable information set forth in the Basic Lease Information, except that in the event of
any conflict between an item in the Basic Lease Information and this Lease, this Lease shall
control.

          1.3. Effect of Certain Defined Terms. The parties acknowledge that (i) the Rentable
Area of the Premises, the

 

 

Expansion Premises, and the Building have been finally determined by the
parties as part of this Lease for all purposes, including the calculation of Tenant’s Percentage
Share and Tenant’s Highrise Percentage Share, and will not, except as otherwise provided in
this Lease, be changed, and (ii) the percentage for allocation of Building Property Taxes has been
determined by Landlord using customary and usual allocation methodologies and is conclusive and
binding on the parties. If any space is added to or deleted from the Premises (other than the
Expansion Premises), the Rentable Area for the added or deleted space shall be reasonably
determined by Landlord.

     2. Lease of Premises, Antenna Areas and Generator Area; Option to Lease Expansion
Premises.

          2.1. Premises. Effective as of the Lease Date, Landlord leases to Tenant and Tenant
leases from Landlord the Premises, together with the non-exclusive right to use, in common with
others, the Common Areas, subject to the terms, covenants and conditions set forth in this Lease.
Landlord reserves from the leasehold estate hereunder (i) all exterior walls and windows bounding
the Premises, (ii) all space located within the Premises for common shafts, stacks, pipes,
conduits, ducts, utilities, telecommunications systems, and other installations for common Building
systems serving the Complex, the use thereof and access thereto, and (iii) the right to install,
remove or relocate any of the foregoing for service to any part of the Complex, including the
premises of other tenants of the Building.

          2.2. Antennas and Antenna Areas.

               a. Antenna Areas. On the terms and conditions contained in this Section 2.2,
Landlord hereby leases to Tenant the Antenna Areas for the installation, operation and maintenance
of the Antennas for the reception and/or transmission of Tenant’s business communications.
Landlord’s lease of the Antenna Areas

 

 

to Tenant is on all the terms and conditions of this
Lease, except that (i) the Antenna Fee shall be the amount set forth in the Basic Lease Information
determined as of the time in question, (ii) Tenant’s obligation to pay the Antenna Fee shall
commence on the Commencement Date, (iii) the Antenna Areas shall not be included in calculating
Tenant’s Percentage Share, and (iv) the lease of the Antenna Areas shall terminate as of the
earlier of (A) the date this Lease terminates for the entirety of the Premises, or (B) the date the
lease of the Antenna Areas terminates pursuant to this Section 2.2.

               b. Delivery of Antenna Areas. Landlord shall deliver possession of the Antenna Areas
to Tenant upon the date Landlord delivers the Premises pursuant to Section 3.1 below.
Landlord shall deliver the Antenna Areas in their “as is” condition, without obligation to make any
alterations or improvements to the Antenna Areas. If Landlord, for any reason due to causes beyond
the reasonable control of Landlord (such as governmental regulations), cannot deliver an Antenna
Area to Tenant by the delivery date herein specified, this Lease shall not be void or voidable, and
Landlord shall not be in default or liable to Tenant for any loss or damage resulting therefrom.
No such delay in delivery of an Antenna Area for any reason whatsoever shall operate to extend the
Term, but in such event the lease of such Antenna Area shall commence on the actual date that
Landlord delivers possession of such Antenna Area to Tenant. Subject to the foregoing, Landlord
shall use commercially reasonable efforts and all due diligence to cure or eliminate the cause of
delay in delivery of the affected Antenna Area, and deliver such Antenna Area to Tenant as soon as
reasonably possible.

               c. Installation, Operation and Maintenance of Antennas. Tenant shall install,
operate, maintain, repair,

 

 

replace and/or remove the Antennas in accordance with the applicable
provisions of this Lease, including provisions for the making of Alterations and compliance with
all applicable Requirements and the provisions of this Section 2.2. Landlord, at no cost
to Landlord, shall cooperate with Tenant in connection with Tenant’s application for required
permits and governmental approvals. In addition to Landlord’s right to review and approve the
design and specifications of the Antennas, and all appurtenant installations to the Antennas,
pursuant to the provisions for making of Alterations under this Lease, Landlord shall have the
right to withhold approval of the design and
specifications for the Antennas, or either of them, and all appurtenant installations to the
Antennas, if Landlord determines, in its sole discretion, that the Antennas, or either of them, or
all appurtenant installations to the Antennas, will adversely affect the appearance, structure or
proper function of any portion of the Complex (including visibility of the Antennas from areas on
the ground off-site from the Complex), or interfere with the operation of other telecommunications
equipment on the roof of the Complex, or in any portion of the Complex. If Landlord withholds its
approval, then Tenant, at its option, may either (i) revise the design and specifications and
resubmit them for Landlord’s approval hereunder until Tenant obtains Landlord’s approval hereunder,
or (ii) terminate its rights and obligations (except for those that have accrued on or prior to the
termination date) under this Section 2.2 as to the Antenna Area or Areas. If Tenant so
terminates its rights and obligations respecting the applicable Antenna Area under this Section
2.2, then, as of the date of giving Landlord notice of such termination, the applicable Antenna
Area shall be deleted from the Premises and Tenant shall thereafter have no further rights or
obligations (except those that shall have accrued on or prior

 

 

to the effective date of termination)
with respect to the applicable Antenna Area. Tenant shall bear all costs and expenses of the
installation, operation, and maintenance of the Antennas. Tenant shall have the right to access
the Antenna Areas to install, maintain, repair, replace or remove the Antennas, but only in
accordance with such reasonable rules and procedures as Landlord may from time to time prescribe by
notice to Tenant. Tenant shall, at its sole cost and expense, repair any and all damage to the
Complex, including the roof of the Complex, caused by the installation, operation, testing,
maintenance, repair, replacement or removal of the Antennas. The Antennas may only be located
within the Antenna Areas. After
the initial emplacement of the Antennas, Tenant shall have the right to replace the Antennas
in accordance with the applicable provisions of this Section 2.2.c for installation of the
Antennas, except that if Tenant makes no material change in the design and specifications for the
Antennas previously approved by Landlord under this Section 2.2.c, Landlord shall not
unreasonably withhold its approval of the replacement Antennas hereunder, unless such change
adversely affects the appearance, structure or function of any portion of the Complex, or
interferes with the operation of other telecommunications equipment on the roof of the Complex, or
in any other portion of the Complex. Tenant shall have the right to install cables or other
installations for the transmission of Tenant’s business communications to and from the Antennas to
other portions of the Premises in the risers installed by Landlord under Section 8.6.f
below. The cables or other installations installed by Tenant hereunder shall be installed,
operated, tested, maintained, repaired, replaced and/or removed in accordance with the applicable
provisions of this Lease, including provisions for the making of Alterations and compliance with
Requirements. The

 

 

installation, operation, maintenance, repair, replacement and/or removal of such
cables or other installations shall be subject to the rights of other tenants and occupants in the
Complex and such rules and procedures as Landlord may from time to time reasonably prescribe by
notice to Tenant. The performance of the work to install such cables or installations shall not
adversely affect the use, occupancy or quiet enjoyment by other tenants or occupants of their
premises in the Complex; and such cables and installations shall not adversely affect the structure
of the Complex, or interfere with the operation of other telecommunications equipment or other
Building systems. Such cables and installations shall be subject to Landlord’s right to require
Tenant to remove such cables and installations upon
removal of the Antennas from the Antenna Areas under this Section 2.2 or on expiration
of the Term, and Tenant shall, at its sole cost and expense, repair any damage to the Complex
caused by such removal. Tenant shall have the right at any time after installation of the Antennas
to remove the Antennas, but upon such removal, the lease of the Antenna Areas hereunder shall
terminate and Tenant shall have no further rights or obligations (except those that shall have
accrued on or prior to the effective date of termination) with respect to the Antenna Areas. In
any event, the lease for the Antenna Areas shall terminate, and Tenant shall remove the Antennas
from the Antenna Areas, on expiration of the Term or earlier expiration of this Lease.

               d. Electrical Supply to Antennas. When Tenant installs the Antennas hereunder,
Landlord may install, at Tenant’s cost and expense, a submeter to measure the electrical
consumption of the Antennas, and in such event Tenant shall pay the cost of electric current as
shown by such meter at Landlord’s actual cost for such electricity. Payments with respect to the
electricity consumed by the Antennas shall be in addition to

 

 

Tenant’s obligation to pay Tenant’s
Percentage Share of increases in Building Operating Expenses.

     e. Disclaimer. Landlord makes no representation or warranty to Tenant that the
Antenna Areas are fit for Tenant’s intended use, nor shall Landlord be responsible for any
interference with the Antennas from other telecommunication devices or equipment located on the
roof of the Complex, other areas of the Complex, or adjacent property. Tenant shall install,
operate, test, maintain and repair the Antennas in such a manner so as to avoid interference with
the operations of other telecommunication devices, including other antennas, located in or on the
Complex. If an Antenna so interferes with the operations of any other telecommunication devices,
Landlord, at Tenant’s sole cost and expense, shall cooperate with Tenant,
using commercially reasonable efforts and due diligence, in order to devise and implement an
appropriate solution to avoid such interference (including, if feasible, relocation of the affected
Antenna Area to another portion of the Complex). If, in Landlord’s judgment, no solution is
possible, then Tenant shall cease operation of an Antenna upon receipt of written notice from
Landlord to that effect, and Tenant shall not resume operation of its Antenna until Landlord is
satisfied, in its reasonable discretion, that the Antenna can be operated without interfering with
the operations of such other telecommunication devices. During such period of ceased operations,
the portion of Antenna Fee applicable to the non-operating Antenna within the applicable portion of
the Antenna Area shall abate; and if such period of ceased operations continues for more than
one-hundred-eighty (180) days, then Landlord shall have the right to terminate the lease of the
applicable Antenna Area hereunder and the right of Tenant to maintain the Antenna in the applicable
Antenna Area (in which event, Tenant shall promptly remove the Antenna at Tenant’s

 

 

sole cost and
expense). Upon such removal, this Lease shall terminate with respect to the applicable Antenna
Area.

          2.3. Lease for Generator Area. On the terms and conditions contained in this
Section 2.3, Landlord hereby leases to Tenant the Generator Area at the location
established under this Section 2.3 for the installation, operation, testing and maintenance
of the Generator for the exclusive use by Tenant (subject, however, to the provisions of
Section 2.3.c below) to support an uninterrupted power supply (UPS) system. The Generator
may be located only in the Generator Area. Prior to installing the Generator hereunder, Tenant
shall notify Landlord of the Generator Area in which Tenant desires to place the Generator. The
Generator Area, when approved by Landlord, shall be part of the Premises for all
purposes of this Lease, except with respect to calculating Tenant’s Percentage Share.

               a. Installation, Operation and Maintenance of Generator. Tenant shall have the right
to pursue and obtain the necessary permits and approvals from all governmental agencies having
jurisdiction under applicable Requirements for the installation, operation, testing and maintenance
of the Generator in the Complex. Such permits and approvals shall specify the location of the
Generator Area and the design and specifications for the Generator. Landlord, at no cost to
Landlord, shall cooperate in good faith with Tenant in connection with Tenant’s application for
such permits and approvals, and in furtherance of Tenant’s desire for the prompt installation
of the Generator in the Generator Area. Landlord shall have the right to review and approve, in
its sole discretion, the specific location of the Generator Area and to review and approve the
design and specifications for the Generator established pursuant to such permits and approvals, and
all appurtenant installations to the Generator (such as fuel lines, exhaust fans, ducts and vents),
as

 

 

an Alteration pursuant to Article 10 below. Without limiting the generality of
Landlord’s review and approval rights with respect to the location of the Generator Area and the
design and specifications for the Generator and appurtenant installations, Landlord shall have the
right to determine, in its sole discretion, whether such location or design and/or specifications
will adversely affect the appearance or structure of the Complex, and Landlord shall have the right
to determine, in its reasonable discretion, whether such location or design and/or specifications
will interfere with the operation of any Building systems, or the use, occupancy or quiet enjoyment
of any portion of the Complex by other tenants or occupants, or otherwise adversely affect the
operation, maintenance or quality of the Complex. If Landlord withholds its approval of either the
Generator Area or the design
and specifications for the Generator, then Tenant may, at its option, either (i) reapply for
and obtain the necessary permits and approvals for the installation, operation and maintenance of
the Generator based on a revised design and/or specifications, and resubmit for Landlord’s approval
any new location of the Generator Area and/or revised design and specifications for the Generator
established pursuant to such new permits and approvals, or (ii) terminate its rights and
obligations (except for those which shall have accrued on or prior to the termination date) under
this Section 2.3. If Tenant so obtains such permits and approvals and Landlord approves,
in accordance with the standards of this Section 2.3.a, the location of the Generator Area
and the design and specifications for the Generator, then Tenant may install, operate, test,
maintain, repair, replace and/or remove the Generator in accordance with the applicable provisions
of this Lease, including provisions for the making of Alterations to the Premises and compliance
with applicable Requirements. Tenant shall bear all costs and expenses of the installation,
operation, testing, maintenance, repair and removal of the Generator. Tenant shall have the right
to access the Generator Area to install, operate, test, maintain, replace or remove the Generator,
but only in accordance with such rules and procedures as Landlord may from time to time reasonably
prescribe by written notice to Tenant, and shall repair any and all damage to the Complex, caused
by the installation, operation,

 

 

testing, maintenance, repair, replacement or removal of the
Generator. After the initial emplacement of the Generator, Tenant shall have the right to replace
the Generator in accordance with the applicable provisions of this Section 2.3.a for
installation of the Generator, except that if Tenant makes no material change in the design and
specifications for the Generator previously approved by Landlord under this Section 2.3.a,
Landlord shall not unreasonably withhold its approval of the replacement Generator
hereunder, unless such change adversely affects the appearance, structure or function of any
portion of the Complex, or interferes with the operation of Building systems, or the use, occupancy
or quiet enjoyment of any portion of the Complex by other tenants or occupants, or otherwise
adversely affects the operation, maintenance or quality of the Complex. Tenant shall have the
right to cause Landlord, at Tenant’s cost and expense, to install up to three (3) four-inch
(4”) risers in the Building core to provide a connection for the Generator electrical supply from
the Generator Area to the Premises. If the number of risers requested by Tenant would not permit
installation of the same number of additional risers to serve the electrical supply for one (1) or
more other generators, then Landlord shall have the obligation to install only that number of
risers which permits subsequent installation of up to the same number of risers for such other
generator or generators. Landlord shall have the right to utilize certain risers which at present
are unused as

 

 

part of the three (3) risers hereunder and, if Landlord so elects, Tenant shall
include such unused risers in the plans and specifications prepared by Tenant under this
Section 2.3.a. Landlord shall install such risers at the location and in accordance with
the plans and specifications therefor prepared by Tenant and approved by Landlord under this
Section 2.3.a; provided, however, that if Landlord shall in the course of installing such
risers find their approved location to be unsuitable, Landlord may install such risers in a more
suitable location, and in such event, Landlord shall use commercially reasonable efforts to locate
such risers in a location that shall not materially increase the installation cost payable by
Tenant hereunder. Tenant shall have the right to install cables or other installations for the
transmission of power to and from the Generator to the Premises in such risers. Such cables or
other installations shall be installed, operated, tested, maintained,
repaired, replaced and/or removed in accordance with the applicable provisions of this Lease,
including provisions for the making of Alterations to the Premises and compliance with applicable
Requirements. The installation, operation, maintenance, repair, replacement and/or removal of such
cables or other installations shall be subject to the rights of other tenants and occupants in the
Complex and such rules and procedures as Landlord may from time to time reasonably prescribe by
notice to Tenant. The performance of the work to install such cables or installations shall not
adversely affect the use, occupancy or quiet enjoyment by other tenants or occupants of their
premises in the Complex; and such cables and installations shall not adversely affect the structure
of the Complex, or interfere with the operation of other Building systems. Such cables and
installations shall be subject to Landlord’s right to require Tenant to remove such cables and
installations upon

 

 

removal of the Generator from the Generator Area under this Section 2.3
or on expiration of the Term, and Tenant shall, at its sole cost and expense, repair any damage to
the Complex caused by such removal. Tenant shall have the right at any time after installation of
the Generator to remove the Generator, but upon such removal without replacement for more than
three (3) months, the lease for the Generator Area hereunder shall terminate and Tenant shall have
no further rights or obligations (except those that shall have accrued on or prior to the effective
date of termination) with respect to the Generator Area. In any event, the lease for the Generator
shall terminate, and Tenant shall remove the Generator from the Generator Area, on expiration of
the Term or earlier expiration of this Lease.

               b. Disclaimer. Landlord makes no representation or warranty to Tenant that the
Generator Area is fit for Tenant’s intended use, nor shall Landlord be responsible for any
interference with the Generator from other equipment located in the
basement and/or on the roof of the Complex, or in any other area of the Complex.

               c. Schwab Generator Rights. Tenant acknowledges that Landlord has previously granted
to Charles Schwab & Co., Inc. (“Schwab”) (another tenant of the Building), on
substantially the same terms and conditions contained in this Section 2.3, the right to
install a generator in a generator area in the basement or on the roof of the Complex for the
exclusive use of Schwab, and that Tenant’s rights under this Section 2.3 are subject
and subordinate to such rights in Schwab. If Tenant obtains the right to install the Generator in
the Generator Area pursuant to this Section 2.3 prior to the time Schwab perfects its right
to install its generator in its generator area, and Tenant’s installation of its Generator in
the Generator Area would preclude Schwab from installing and using its generator in

 

 

its generator
area, then Tenant shall take all actions necessary in order to allow Schwab the right to install
and use its generator in its generator area, which may include use of the Generator and/or
appurtenant installations, including the fuel tank serving the Generator, on a shared basis on
terms and conditions mutually acceptable to Tenant and Schwab, in lieu of Schwab’s right to
install its generator in its generator area or its fuel tank to supply its generator, or the
reduction of the capacity of the fuel tank supplying fuel to the Generator so as to allow Schwab to
install its fuel tank, or to allow Schwab to use the Generator Area for installation of its
generator in lieu of Schwab’s generator area. If so requested by Tenant from time to time,
Landlord, at no cost to Landlord, shall cooperate in good faith with Tenant in connection with
Tenant’s obligations under this Section 2.3.c in order to preserve Tenant’s
right to maintain the Generator in the Generator Area (including at a reduced capacity as
contemplated hereby).

          2.4. Expansion of Premises. Landlord grants to Tenant the option to expand the
Premises to include the Rentable Area on one or more of the Floors comprised in the Expansion
Premises upon the terms and conditions set forth in this Section 2.4.

          a. Notice and Procedure. Landlord shall notify Tenant whenever, commencing with the
commencement of the Term and during the Term, in Landlord’s judgment, a Floor, or portion thereof
(references hereinafter contained to “the Floor” or “such Floor” being deemed to
include such portions of such Floor) comprised in the Expansion Premises will be available for
delivery to Tenant (“Landlord’s Expansion Notice”), except that Landlord shall not deliver any
Landlord’s Expansion Notice for the 35th Floor comprised in the Expansion Premises prior to
May 1, 1999, the date Tenant’s right of first refusal for the 35th Floor expires pursuant to
Section 2.5 below. The term and term

 

 

extension rights for each lease for space on each
Floor of the Expansion Premises in effect as of the Lease Date, and any right of any tenant of the
Building under its lease in effect as of the Lease Date to expand into any portion of the Expansion
Premises, are set forth on Exhibit B. Tenant shall have ten (10) days after the date of
Landlord’s Expansion Notice to deliver to Landlord Tenant’s unconditional written notice of its
election to exercise its option with respect to the Floor in the Expansion Premises identified in
Landlord’s Expansion Notice. The failure of Tenant so to exercise its option with respect to such
Floor in the Expansion Premises shall terminate Tenant’s option to expand with respect to such
Floor in the Expansion Premises, but Tenant shall continue to have an option to expand the Premises
on such Floor in the Expansion Premises when and if such Floor again becomes available in
Landlord’s judgment pursuant to this Section 2.4.a. The effectiveness of Tenant’s exercise
of its option to expand as set forth in this Section 2.4 is in each instance
conditioned on the following as of the date of delivery of Tenant’s notice of its election to
exercise such option: (i) Tenant has not entered into an assignment of this Lease requiring
Landlord’s consent; (ii) Tenant (including Tenant’s Affiliates) physically occupy at least
seventy-five percent (75%) of the Premises; (iii) no Event of Default has occurred which remains
uncured; and (iv) Tenant’s Net Worth is not less than Four Million Dollars ($4,000,000.00) for the
period prior to December 31, 1998, Five Million Dollars ($5,000,000.00) for the period from January
1, 1999 through December 31, 1999, increased thereafter by Five Million Dollars ($5,000,000.00) as
of December 31 of each calendar year following December 31, 1999, up to a maximum amount of
Twenty-Five Million Dollars ($25,000,000.00). If Tenant does not meet the condition specified in
clause (iv) above, Tenant may provide Landlord Additional Security from an

 

 

Affiliate, which
Affiliate’s Affiliate Net Worth when combined with Tenant’s Net Worth meets the
applicable test for net worth set forth in clause (iv) above.

               b. Addition of Expansion Premises to Premises. The Floor in the Expansion Premises as
to which Tenant has duly exercised its option to expand hereunder shall automatically become part
of the Premises as of the actual date of delivery of possession of such Floor to Tenant pursuant to
this Section 2.4, and on all the terms and conditions of this Lease, except that (i) the
Base Rent for such Floor shall be the higher of (A) fair market rent determined in accordance with
Section 2.4.c below, or (B) the Base Rent and Escalation Rent for the 36th — 38th Floors
then in effect, with the same Base Year specified in the Basic Lease Information, (ii) the
Commencement Date for such Floor shall be ninety (90) days following the date of the actual
delivery of the Floor by Landlord to Tenant hereunder, and (iii) the Expiration Date for such Floor
shall be the date specified by Landlord in Landlord’s Expansion Notice. Landlord
may determine such Expiration Date in its sole discretion, not to exceed, however, ten (10)
years from the date such Floor is added to the Premises under this Section 2.4, and such
Expiration Date may or may not be coterminous with the Expiration Date for the Term set forth in
the Basic Lease Information, except that such Expiration Date for each additional Floor in the
Expansion Premises (other than the 35th Floor) as to which Tenant has duly exercised its option to
expand hereunder shall have an Expiration Date coterminous with the Expiration Date for the Term of
the first (1st) Floor (other than the 35th Floor) in the Expansion Premises added to the Premises
hereunder, and such Expiration Date for the 35th Floor, if applicable, shall be coterminous with
the Expiration Date for the Term set forth in the Basic Lease Information. Upon the addition of a
Floor in the Expansion

 

 

Premises to the Premises hereunder, Tenant’s Percentage Share for such Floor
(and as to the 35th Floor, Tenant’s Highrise Percentage Share and Tenant’s Allocable
Share for the 35th Floor) shall be that set forth in the Basic Lease Information for such Floor,
prorated for partial Floors if applicable. Landlord shall deliver the Expansion Premises to Tenant
in their “as-is” condition, without obligation to make any alterations or improvements to the
Expansion Premises. If Landlord for any reason whatsoever cannot deliver a Floor in the Expansion
Premises to Tenant by the proposed delivery date set forth in Landlord’s Expansion Notice, this
Lease shall not be void or voidable and Landlord shall not be in default or liable to Tenant for
any loss or damage resulting therefrom. No delay in delivery of a Floor in the Expansion Premises
for any reason whatsoever shall operate to extend the Expiration Date or the Term for such Floor.
Landlord and Tenant shall enter into any amendments to this Lease reasonably required by either
Landlord or Tenant to confirm that a Floor in the Expansion Premises has been added to the
Premises, increasing Tenant’s Percentage Share (and as to the 35th Floor,
Tenant’s Highrise Percentage Share and Tenant’s Allocable Share for the 35th
Floor), confirming the Base Rent, the Base Year, and the Rent Commencement Date and Expiration Date
applicable to such Floor, and such other amendments as are reasonably required to implement the
addition of the Expansion Premises to the Premises.

               c. Determination of Fair Market Rent.

                    (i) Fair Market Rent Defined. As used in this Section 2.4, “fair market rent”
means the annual base rent charged for full floor space comparable to the Expansion Premises in the
Building and in Comparable Buildings taking into account: (i) the length of the Term for such
Floor and the lease terms for such comparable space; (ii) the rental structure under this Lease and
the leases for such comparable space, including any

 

 

escalations payable under this Lease and under
leases of such comparable space, and the Base Year under this Lease and the base year for such
payments under leases for such comparable space; (iii) the size, location and the Floor level of
the Expansion Premises compared with such comparable space and the views from the Expansion
Premises compared with the views from such comparable space; (iv) tenant improvement allowances
made to tenants for such comparable space; and (v) the quality and usability of the existing
improvements in the Floor of the Expansion Premises, and in such comparable space. For purposes of
determining fair market rent, no lease of space in a Comparable Building shall be utilized if such
space contains material quantities of asbestos, such as asbestos fireproofing or in-slab asbestos.
Fair market rent shall be determined for each Floor in the Expansion Premises as of the date such
Floor is added to the Premises hereunder.

                    (ii) Determination of Fair Market Rent. If Landlord believes that fair market rent is
higher than the Base Rent determined pursuant to clause (i)(B) of Section 2.4.b above,
then, within thirty (30) days after receipt of Tenant’s
notice of exercise of its right to expand under this Section 2.4, Landlord shall
deliver to Tenant Landlord’s estimate of fair market rent. Landlord and Tenant shall thereupon
negotiate in good faith for not more than thirty (30) days in an attempt to determine fair market
rent for the Floor in the Expansion Premises as to which Tenant has exercised its expansion option.
If they are able to agree within such 30-day period, then the fair market rent shall be the amount
so agreed upon. If they are unable to agree on fair market rent within such 30-day period, then
within ten (10) days after the expiration of such 30-day period, the parties shall deliver to each
other concurrently at a mutually agreeable place and time their respective final written

 

 

estimates
of fair market rent on which Landlord would be willing to lease to Tenant the Floor in the
Expansion Premises as to which Tenant has exercised its expansion option, and Tenant would be
willing to lease such Floor from Landlord. If each party’s final estimate of the fair market rent
is the same, then fair market rent shall equal such estimate. If one party’s final estimate of
fair market rent is five percent (5%), or less, higher than the other party’s final estimate, then
fair market rent shall equal the average of the two (2) final estimates. In every other case, the
fair market rent, based on the two (2) final estimates, shall be determined by arbitration as
provided in Section 30.16 below, but in no event shall Base Rent for any Floor in the
Expansion Premises be less than the Base Rent determined pursuant to clause (i)(B) of Section
2.4.b above, and the arbitrators conducting the arbitration under Section 30.16 shall
be so instructed. Should the determination of fair market rent not be completed or agreed upon
prior to the date upon which Tenant’s obligation to pay Base Rent commences for the Floor in the
Expansion Premises as to which Tenant has exercised its expansion option, Tenant shall pay annual
Base Rent equal to Landlord’s final estimate of fair market rent made pursuant
hereto. If after determination of fair market rent, the annual Base Rent is less than the
amount previously paid by Tenant for such period, Landlord shall pay the difference to Tenant
within thirty (30) days after the date of such determination, with interest thereon calculated from
the date of each payment of such Rent by Tenant at the Prime Rate plus one percent (1%); and, if
after determination of fair market rent, the annual Base Rent is more than the amount previously
paid Tenant for such period, Tenant shall pay the difference to Landlord within thirty (30) days
after the date of such determination, with interest thereon

 

 

calculated from the date of each
payment of such Rent by Tenant at the Prime Rate plus one percent (1%).

               d. Provisions Applicable to Expansion on Partial Expansion Premises Floor.
Notwithstanding anything to the contrary contained in this Section 2.4, the provisions of
this Section 2.4.d shall govern Tenant’s rights with respect to the exercise of its option
to expand with respect to a portion of a Floor in the Expansion Premises. If Tenant has exercised
its option to expand hereunder with respect to a portion of a Floor in the Expansion Premises, then
Tenant shall have the absolute obligation to accept delivery and add to the Premises the balance of
such Floor when and if the same becomes available, and such balance of such Floor shall
automatically become part of the Premises as of the actual date of delivery of possession of such
balance of such Floor to Tenant pursuant to this Section 2.4.d, subject, however, to
clauses (i) — (iii) of Section 2.4.b above.

               e. Expansion Option Personal to Tenant. Tenant’s right to expand the Premises
to include the Rentable Area on one or more of the Floors comprised in the Expansion Premises under
this Section 2.4 is personal to the signatory Tenant of this Lease, Thomas Weisel Partners
LLC, and any Affiliate of Tenant to whom Tenant has assigned this Lease in an assignment not
requiring Landlord’s consent under Article 17 below, but may not
otherwise be assigned or transferred in any manner, including pursuant to Article 17.

          2.5. Right of First Refusal and Right of First Offer for 35th Floor. In addition to
Tenant’s option to expand the Premises to include the Rentable Area on the 35th Floor in the
Premises pursuant to Section 2.4 above, Landlord grants to Tenant a right of first refusal
and a right of first offer to lease the 35th Floor on the terms and conditions set forth in this
Section 2.5. The provisions of this Section 2.5 shall not, however,

 

 

apply if
Tenant has previously exercised its option to expand the Premises to include the Rentable Area on
the 35th Floor prior to the time Tenant’s right of first refusal and/or right of first offer
arises under this Section 2.5.

               a. Right of First Refusal. If prior to May 1, 1999, Landlord enters into a bonafide
letter of intent or other agreement for the lease of all or a portion of the 35th Floor, Landlord
shall promptly so notify Tenant (the “Right of First Refusal Notice”). Tenant shall
have the right, for a period of three (3) business days following receipt of the Right of First
Refusal Notice, to add the 35th Floor to the Premises.

               b. Right of First Offer. If Landlord does not deliver the Right of First Refusal
Notice prior to May 1, 1999, pursuant to Section 2.5.a above, then from and after May 1,
1999, when and if Landlord has established through negotiation with a prospective tenant for all or
a portion of the 35th Floor, at least the duration of the lease term and the amount of base rent
for a lease to such prospective tenant, then Landlord shall so notify Tenant (the “Right of
First Offer Notice”). Tenant shall have the right, for a period of three (3) business days
following receipt of the Right of First Offer Notice, to add the 35th Floor to the Premises.

               c. Effect of Exercise or Non-Exercise. If Tenant duly and timely exercises its right
of first refusal or right of first notice, as the case may be, to add the 35th Floor to the
Premises hereunder, the 35th Floor shall automatically become part of the Premises as of the actual
date of delivery of possession of the 35th Floor to Tenant pursuant to Section 2.5.a, or
Section 2.5.b, as applicable, on all the terms and conditions of this Lease, except that (i)
the Base Rent for the 35th Floor shall be the Base Rent determined for a Floor in the Expansion
Premises pursuant to Section 2.4 above as if Tenant had exercised

 

 

its right to add the 35th
Floor to the Premises pursuant to Section 2.4 above, and (ii) the Commencement Date for the
35th Floor shall be ninety (90) days following the date of the actual delivery of the 35th Floor by
Landlord to Tenant hereunder. If Tenant fails or declines to exercise its right of first refusal
or right of first notice, as the case may be, after receipt of the Right of First Refusal Notice or
Right of First Offer Notice, as the case may be, then Tenant’s right to add the 35th Floor to
the Premises pursuant to this Section 2.5 shall continue to apply until Landlord enters
into a lease with a tenant for space on the 35th Floor after Tenant fails or declines to exercise
its right of first refusal or right of first notice, as the case may be, hereunder, in which event
Tenant’s right to add the 35th Floor to the Premises pursuant to this Section 2.5
shall automatically terminate and be of no further force or effect, but the 35th Floor shall,
subject to any lease entered into by Landlord after giving the Right of First Refusal Notice and/or
Right of First Offer Notice, be subject to the provisions of Section 2.4 above as part of
the Expansion Premises.

               d. Conditions to Exercise. The effectiveness of Tenant’s exercise of its Right of
First Refusal or Right of First Offer, as the case may be, as set forth in this Section 2.5
is in each instance conditioned on the following as of the date of
delivery of Tenant’s notice of its election to exercise the Right of First Refusal or Right of
First Offer, as the case may be: (i) Tenant has not entered into an assignment of this Lease
requiring Landlord’s consent; (ii) Tenant (including Tenant’s Affiliates) physically occupy at
least seventy-five percent (75%) of the Premises; (iii) no Event of Default has occurred which
remains uncured; and (iv) Tenant’s Net Worth is not less than Four Million Dollars ($4,000,000.00)
for the period prior to December 31, 1998, Five Million Dollars ($5,000,000.00) for the

 

 

period from
January 1, 1999 through December 31, 1999, increased thereafter by Five Million Dollars
($5,000,000.00) as of December 31 of each calendar year following December 31, 1999, up to a
maximum amount of Twenty-Five Million Dollars ($25,000,000.00). If Tenant does not meet the
condition specified in clause (iv) above, Tenant may provide Landlord Additional Security from an
Affiliate, which Affiliate’s Affiliate Net Worth when combined with Tenant’s Net Worth
meets the applicable test for net worth set forth in clause (iv) above.

               e. Right of First Refusal and Right of First Offer Personal to Tenant.
Tenant’s Right of First Refusal and Right of First Offer granted under this Section
2.5 are personal to the signatory Tenant of this Lease, Thomas Weisel Partners LLC, and any
Affiliate of Tenant to whom Tenant has assigned this Lease in an assignment not requiring
Landlord’s consent under Article 17 below, but may not otherwise be assigned or
transferred in any manner, including pursuant to Article 17.

          2.6. Limited Right of Termination of Lease. On the terms and conditions set forth in
this Section 2.6, Landlord grants to Tenant a one-time right to terminate this Lease.

               a. Exercise of Termination Right. Tenant shall exercise its termination right
hereunder, if at all, not later than June 16, 2004. If Tenant exercises its right to terminate
this Lease, termination shall, subject to the conditions
specified in Section 2.6.b below, be effective March 16, 2005 (the “Termination
Date”), and as of the Termination Date, this Lease, and all rights, duties and obligations of the
parties with respect to this Lease, shall terminate and be of no further force or effect, except
for those obligations which shall have accrued prior to the Termination Date.

               b. Termination Consideration. As consideration for and a condition of Tenant’s right
to terminate

 

 

this Lease, Tenant shall pay to Landlord an amount equal to the sum of nine (9) months
installments of Base Rent and Escalation Rent for the Premises for the period commencing March 17,
2005, plus the unamortized amount of all brokers’ commissions paid by Landlord with respect
to this Lease. Amortization hereunder shall be straight line, based on the then remaining initial
Term of this Lease, using the Expiration Date when the Lease would otherwise terminate; and the
interest factor for such amortization shall be ten percent (10%) per annum. Upon receipt by
Landlord of Tenant’s notice of exercise of its termination right hereunder, Landlord shall
calculate the consideration due hereunder, and shall submit such calculation, together with
appropriate backup material, to Tenant. Tenant shall pay the amount of the consideration as so
calculated by Landlord due on account of the exercise by Tenant of its termination right hereunder
within thirty (30) days after receipt of Landlord’s calculation, and Tenant’s failure to pay such
amount within such thirty (30) day period shall, at Landlord’s written election, given within
thirty (30) days after the expiration of such 30-day period, render the termination of this Lease
null and void and the Lease shall remain in full force and effect.

     3. Term; Condition and Acceptance of Premises.

          3.1. Term and Delivery. This Lease shall be effective as of the Lease Date. The Term of this Lease shall commence on the Commencement Date and end on the Expiration Date,
unless sooner terminated pursuant to the provisions of this Lease. Unless otherwise provided in an
Addendum, Landlord shall deliver the Premises to Tenant on the Lease Date in their “as-is”
condition without obligation to make any alterations or improvements to the Premises. If Landlord,
for any reason whatsoever, cannot deliver the Premises to Tenant in the condition specified herein
by the Lease Date, this Lease shall

 

 

not be void or voidable, and Landlord shall not be in default
or liable to Tenant for any loss or damage resulting therefrom. No delay in delivery of the
Premises for any reason whatsoever shall extend the Commencement Date or Expiration Date or the
Term. Tenant’s occupancy of all or any portion of the Premises shall constitute Tenant’s
acceptance of the Premises in the condition called for by this Lease.

          3.2. Extension. Upon the terms and conditions specified in this Section 3.2,
Landlord grants to Tenant the right to extend the Term for the Extended Term.

               a. Exercise and Notice. Tenant shall exercise its right to extend the Term under this
Section 3.2 by giving written notice to Landlord of such exercise (the “Tenant Extension
Notice”) not earlier than fifteen (15) months nor later than twelve (12) months prior to the
earliest Expiration Date of the Term applicable to Floors in the Premises. The Term shall be
extended, if at all, for the entire Premises, including each Floor in the Expansion Premises which
has been added to the Premises. The Extended Term shall be on the same terms and conditions as
this Lease, except that (i) Base Rent for the Extended Term shall be the higher of (A) fair market
renewal rent determined in accordance with Section 3.2.b below, or (B) the Base Rent and
Escalation Rent for each Floor in the Premises then in effect, and (ii) the Term shall be extended
for the entire
Premises, including each Floor in the Expansion Premises which has been added to the Premises,
except that the Term for such Floor in the Expansion Premises shall be extended from the Expiration
Date for such Floor for the Extended Term.

               b. Determination of Fair Market Renewal Rent.

                    (i) Fair Market Renewal Rent Defined. As used herein, “fair market renewal rent”
means the annual base rent prevailing for lease renewals for “Comparable Renewal Space”

 

 

in the Building and in Comparable Buildings, multiplied by the Rentable Area of the Premises. As
used herein, “Comparable Renewal Space” means not less than full floor space in the
Building and in Comparable Buildings that is comparable to the Premises, the lease for which is
then being or has recently been renewed by the owner of the building in which the Comparable
Renewal Space is located. In determining fair market rental renewal value, the following factors
shall be taken into account: (i) the amount of refurbishment allowances provided for the
Comparable Renewal Space, taking into account the quality level of the improvements in the
Comparable Renewal Space in relationship to the quality level of existing improvements in the
Premises; (ii) the usability of the existing improvements in the Premises in comparison with the
usability of the existing improvements in the Comparable Renewal Space; (iii) the rental structure
under this Lease and the leases for the Comparable Renewal Space, including any escalations payable
under this Lease and under leases of the Comparable Renewal Space, and the Base Year under this
Lease and the base year for such payments under leases for the Comparable Renewal Space; (iv) the
size, location and the floor level of, and views from, the Premises compared with the Comparable
Renewal Space; and (v) the duration of the Extension Term in relationship to the duration of the
renewal term for the Comparable Renewal Space. Fair market renewal rent shall be determined as of
the date of the commencement of the
Extended Term for each portion of the Premises, as applicable, under this Section 3.2.

               (ii) Determination of Fair Market Renewal Rent. If Landlord believes that fair
market renewal rent is higher than the Base Rent determined pursuant to clause (i)(B) of
Section 3.2.a above, then, six (6) months prior to each Expiration Date for each group of
Floors then comprised in the

 

 

Premises (each, a “Floor Group”), Landlord shall deliver
to Tenant Landlord’s estimate of fair market renewal rent for the Floor Group. Landlord and Tenant
shall thereupon negotiate in good faith for not more than thirty (30) days in an attempt to
determine fair market renewal rent for the Floor Group. If they are able to agree within such
30-day period, then the fair market renewal rent for the Floor Group shall be the amount so agreed
upon. If they are unable to agree on fair market renewal rent for the Floor Group within such
30-day period, then within ten (10) days after the expiration of such 30-day period, the parties
shall deliver to each other concurrently at a mutually agreeable place and time their respective
final written estimates of fair market renewal rent for the Floor Group on which Landlord would be
willing to lease the Floor Group to Tenant, and Tenant would be willing to lease the Floor Group
from Landlord. If each party’s final estimate of the fair market renewal rent for the Floor Group
is the same, then fair market renewal rent for the Floor Group shall equal such estimate. If one
party’s final estimate of fair market renewal rent for the Floor Group is five percent (5%), or
less, higher than the other party’s final estimate, then fair market renewal rent for the Floor
Group shall equal the average of the two (2) final estimates. In every other case, the fair market
renewal rent for the Floor Group, based on the two (2) final estimates, shall be determined by
arbitration as provided in Section 30.16 below, but in no event shall Base Rent
for the Extension Term for the Floor Group be less than the Base Rent determined pursuant to
clause (i)(B) of Section 3.2.a above, and the arbitrators conducting the arbitration under
Section 30.16 shall be so instructed. Should the determination of fair market renewal rent
for the Floor Group not be completed or agreed upon prior to the commencement of the Extended Term
for the Floor Group, Tenant shall pay Base Rent equal to Landlord’s

 

 

final estimate of fair market
renewal rent for the Floor Group made pursuant hereto. If after determination of fair market
renewal rent for the Floor Group, the Base Rent is less than the amount previously paid by Tenant
for such period, Landlord shall pay the difference to Tenant within thirty (30) days after the date
of such determination with interest thereon calculated from the date of each payment of such Rent
by Tenant at the Prime Rate plus one percent (1%); and, if after determination of fair market
renewal rent for the Floor Group, the Base Rent is more than the amount previously paid Tenant for
such period, Tenant shall pay the difference to Landlord within thirty (30) days after the date of
such determination with interest thereon calculated from the date of each payment of such Rent by
Tenant at the Prime Rate plus one percent (1%).

               c. Conditions to Exercise. Tenant’s right to extend the Term for the Extended Term
pursuant to this Section 3.2 is conditioned on the following as of the date Tenant gives
the Tenant Extension Notice: (i) Tenant has not entered into an assignment of this Lease requiring
Landlord’s consent; (ii) Tenant (including Tenant’s Affiliates) physically occupy at least
seventy-five percent (75%) of the Premises; (iii) no Event of Default has occurred which remains
uncured; and (iv) Tenant’s Net Worth is not less than Twenty-Five Million Dollars ($25,000,000.00).
If Tenant does not meet the condition specified in clause (iv) above, Tenant may provide Landlord
Additional Security from an Affiliate, which Affiliate’s
Affiliate Net Worth when combined with Tenant’s Net Worth meets the applicable test for
net worth set forth in clause (iv) above.

               d. Lease For Extended Term. If Tenant extends the Term for the Extended Term in
accordance with the provisions of this Section 3.2, then Tenant shall continue to lease the
Premises for such Extended Term on all of the terms and

 

 

conditions of this Lease, except that (i)
Base Rent for the Extended Term for each Floor Group shall be the Base Rent determined pursuant to
the applicable provisions of this Section 3.2, and (ii) the Base Year for the Extended Term
for each Floor Group shall be the calendar year in which the Extended Term for each Floor Group
commences. Landlord and Tenant shall enter into any amendments to this Lease reasonably required
by either Landlord or Tenant to confirm the terms and conditions upon which Tenant shall continue
to lease each Floor Group for the Extended Term, including the Base Rent for each Floor Group, the
new Expiration Date for each Floor Group based on the Extended Term, and such other amendments as
are reasonably required to implement such Extended Term for each Floor Group.

               e. Extension Option Personal to Tenant. Tenant’s right to extend the Term for
the Extended Term under this Section 3.2 are personal to the signatory Tenant of this
Lease, Thomas Weisel Partners LLC, and any Affiliate of Tenant to whom Tenant has assigned this
Lease in an assignment not requiring Landlord’s consent under Article 17 below, but
may not otherwise be assigned or transferred in any manner, including pursuant to Article
17.

     4. Rent.

          4.1. Obligation to Pay Base Rent. Tenant shall pay Base Rent to Landlord, in
advance, commencing on the Commencement Date, and thereafter on the first day of each calendar
month thereafter during the Term. If the Commencement Date and/or Expiration Date is other than
the first day of a calendar month, the installment
of Base Rent for the first and/or last fractional month of the Term shall be prorated on a
daily basis. Tenant shall also pay to Landlord the Antenna Fee during the Term. The Antenna Fee
shall be paid to Landlord monthly in advance, commencing on the Commencement Date, and thereafter
on or before the first day of each calendar month during the Term.

 

 

          4.2. Manner of Rent Payment. All Rent shall be paid by Tenant without notice,
demand, abatement, deduction or offset, in lawful money of the United States of America, and if
payable to Landlord, at Landlord’s Address, or to such other person or at such other place as
Landlord may from time to time designate by notice to Tenant.

          4.3. Additional Rent. All Rent not characterized as Base Rent, the Antenna Fee, or
Escalation Rent shall constitute additional rent, and if payable to Landlord shall be due and
payable thirty (30) days after Tenant’s receipt of Landlord’s invoice therefor.

          4.4. Late Payment of Rent; Interest. Tenant acknowledges that late payment by Tenant
of any Rent will cause Landlord to incur administrative costs not contemplated by this Lease, the
exact amount of which are extremely difficult and impracticable to ascertain based on the facts and
circumstances pertaining as of the Lease Date. Accordingly, if any Rent is not paid by Tenant when
due, Tenant shall pay to Landlord, with such Rent, a late charge equal to four percent (4%) of such
Rent, except that for the first two (2) instances during each calendar year during the Term (not
exceeding, however, five [5] such instances in the aggregate during the Term) in which any Rent is
not paid by Tenant within five (5) days after such Rent is due, no late charge shall be imposed
unless Tenant fails to make payment of the overdue Rent within five (5) days after the due date for
such Rent. Any Rent, other than late charges, due Landlord under this Lease, if not paid when due,
shall also bear interest from the date due until paid, at the rate of ten percent (10%) per annum.
The parties acknowledge that such late charge and interest represent a fair and reasonable estimate
of the administrative costs and loss of use of funds Landlord will incur by reason of a late Rent
payment by Tenant, but Landlord’s

 

 

acceptance of such late charge and/or interest shall not
constitute a waiver of the Event of Default with respect to such Rent or prevent Landlord from
exercising any other rights and remedies provided under this Lease.

          4.5. Lease Net of all Costs and Expenses Beyond Base Year. Except for Building
Operating Expenses and Building Property Taxes included in the Base Year, this Lease is a net Lease
and Base Rent shall be paid to Landlord absolutely net of all Building Operating Expenses and
Building Property Taxes, and all other costs and expenses payable by Tenant under this Lease. The
provisions in this Lease for payment by Tenant of Escalation Rent, and all other costs and expenses
payable by Tenant under this Lease, are intended to pass on to Tenant and reimburse Landlord for
Tenant’s Percentage Share of Building Operating Expenses and Building Property Taxes, and for
all such other costs and expenses.

     5. Calculation and Payments of Escalation Rent. During each full or partial calendar
year of the Term subsequent to the Base Year, Tenant shall pay to Landlord Escalation Rent in
accordance with the following procedures:

          5.1. Payment of Estimated Escalation Rent. During December of the Base Year and
December of each subsequent calendar year, or as soon thereafter as practicable, Landlord shall
give Tenant notice
of its estimate of Escalation Rent due for the ensuing calendar year. On or before the first
day of each month during such ensuing calendar year, Tenant shall pay to Landlord in advance, in
addition to Base Rent, one-twelfth (1/12th) of such estimated Escalation Rent, unless such notice
is not given in December, in which event Tenant shall continue to pay on the basis of the prior
calendar year’s estimate until the month after such notice is given, and subsequent payments by
Tenant shall be based on Landlord’s notice. With the first

 

 

monthly payment based on Landlord’s
notice, Tenant shall also pay the difference, if any, between the amount previously paid for such
calendar year and the amount which Tenant would have paid through the month in which such notice is
given, based on Landlord’s noticed estimate. If at anytime Landlord reasonably determines that the
Escalation Rent for the current calendar year will vary from Landlord’s estimate, Landlord may, by
notice to Tenant, revise its estimate for such calendar year, and subsequent payments by Tenant for
such calendar year shall be based upon such revised estimate.

          5.2. Escalation Rent Statement and Adjustment. Within one hundred twenty (120) days
after the close of each calendar year, or as soon thereafter as practicable, Landlord shall deliver
to Tenant a statement of the actual Escalation Rent for such calendar year, showing in reasonable
detail the Building Operating Expenses and the Base Building Property Taxes comprising the actual
Escalation Rent. If Landlord’s statement shows that Tenant owes an amount less than the payments
previously made by Tenant for such calendar year, Landlord shall credit the difference first
against any sums then owed by Tenant to Landlord and then against the next payment or payments of
Rent due Landlord, except that if a credit amount is due Tenant after termination of this Lease,
Landlord shall pay to Tenant any excess remaining after Landlord credits such amount against any
sums owed by Tenant to Landlord. If Landlord’s statement shows that Tenant owes an amount
more than the payments previously made by Tenant for such calendar year, Tenant shall pay the
difference to Landlord within thirty (30) days after delivery of the statement. Except as provided
in Section 5.4 below, all statements hereunder shall be conclusive and binding on Tenant
and Landlord.

 

 

          5.3. Proration for Partial Year. If this Lease terminates other than on the last day
of a calendar year (other than due to an Event of Default), the amount of Escalation Rent for such
fractional calendar year shall be prorated on a daily basis. Upon such termination, Landlord may,
at its option, calculate the adjustment in Escalation Rent prior to the time specified in
Section 5.2 above.

          5.4. Tenant Audit Rights With Respect to Escalation Rent. Landlord shall maintain
such books and records as are necessary in order to account properly for Operating Expenses,
Property Taxes, Building Operating Expenses, and Building Property Taxes. Tenant shall have the
right, upon the terms and conditions specified in this Section 5.4, to inspect and audit
such books and records.

               a. Audit Right and Procedures. Tenant shall have the right to inspect and/or audit
such books and records one (1) time with respect to each calendar year during the Term. Tenant
shall conduct any inspection or audit which Tenant is entitled to conduct hereunder not later than
one hundred eighty (180) days after the issuance of the Escalation Rent statement as to which such
inspection and/or audit right pertains. If Tenant does not so conduct any audit or inspection
during such 180-day period, then Landlord’s statement shall be conclusive and binding on
Tenant and Landlord as specified in
Section 5.2 above. If Tenant has the right to inspect and/or audit Landlord’s books
and records hereunder and Tenant desires to exercise such right, then Tenant shall give Landlord
notice thereof at least ten (10) business days prior to the date Tenant intends to conduct such
inspection and/or audit. All inspections and audits hereunder shall be conducted in the office
where Landlord’s books and records are then kept, during regular business hours, except that if
Landlord’s books and records are

 

 

maintained by Landlord at a location other than the Complex,
Landlord shall, upon written request by Tenant, make such books and records available for
inspection and audit hereunder at the Building general manager’s office in the Complex. Landlord
shall give Tenant and its representatives hereunder prompt and reasonable access to Landlord’s
books and records during the course of conduct by Tenant of any inspection or audit hereunder, and
shall, at Tenant’s expense, make copies of such books and records when and to the extent requested
by Tenant. Any inspection or audit hereunder shall be conducted by (i) a reputable certified
public accountant or accounting firm (a “CPA”) with experience in conducting inspections and/or
audits of operating expenses in office buildings or (ii) employees of Tenant. No Tenant employee
or CPA so designated by Tenant shall be compensated on a contingency basis on the results of the
inspection or audit, and Tenant shall be solely responsible for all costs and expenses of any
inspection or audit undertaken by Tenant hereunder, including all costs of copying such books and
records at Tenant’s request. Landlord shall have the right to designate a representative to be
present with any Tenant employee or CPA during such periods they are conducting inspections and/or
audits hereunder. If Tenant’s audit shows that the amount of Escalation Rent for the calendar year
which is the subject of the audit was under- or overstated, and Landlord does not dispute the
results of such audit, then, within thirty (30) days after Tenant
concludes its audit hereunder, the parties shall make such adjustments and payments as are
necessary or appropriate accurately to reflect the actual amount of such Escalation Rent actually
due Landlord for such calendar year. If Tenant’s audit shows that the amount of Escalation Rent
for the calendar year which is the subject of the audit actually paid by Tenant was overstated, and
Landlord disputes such conclusion, then Tenant

 

 

shall promptly supply to Landlord a copy of such
portions of any written report or analysis resulting from such inspection or audit which forms the
basis of Tenant’s determination hereunder.

               b. Confidentiality Requirements. Tenant shall keep confidential as a trade or
business secret all information resulting from any inspection or audit undertaken by or on behalf
of Tenant hereunder, and shall impose such confidentiality requirement on any employee or third
person conducting any inspection or audit hereunder. Tenant may, however, disclose such
information (i) to the extent required by any Requirements; (ii) in any litigation or proceeding
between the parties with respect to any dispute between them regarding Escalation Rent (subject to
such protective orders to prevent disclosure and protect the confidentiality of such information as
may be available in accordance with applicable law, to which Tenant hereby consents and shall not
oppose); (iii) to the extent required by judicial process (such as a subpoena duces tecum), after
notice by Tenant to Landlord of the receipt of such judicial process, and subject to Landlord’s
right to seek such protective orders, without cost or expense to Tenant, to prevent disclosure and
protect the confidentiality of such information as may be available in accordance with applicable
law (to which Tenant hereby consents and shall not oppose to the extent that such protective order
does not diminish Tenant’s rights or enlarge Tenant’s obligations under this Lease);
(iv) if such information is generally known to the public or is in the public
domain, other than on account of a breach by Tenant of its obligations under this Section
5.4.b; or (v) to Tenant’s executives, accountants, attorneys and other agents and

 

 

representatives (subject, however, to the imposition on such executives, accountants, attorneys and
other agents and representatives, of the confidentiality requirements of this Section
5.4.b).

               c. Limits on Right. The right of Tenant to inspect or audit Landlord’s books and
records hereunder shall not be transferrable to or inure to the benefit of any sublessee of Tenant.
In no event shall Tenant have any rights of inspection or audit hereunder if, but only during the
period that, Tenant has committed a monetary Event of Default under this Lease and such Event of
Default remains uncured after the giving of any required notice and expiration of any applicable
cure period. Tenant’s rights of inspection or audit hereunder shall, in each instance as
applicable, be reinstated when and if Tenant cures any such monetary default.

     6. Impositions Payable by Tenant. Tenant shall pay all Impositions prior to
delinquency. If billed directly, Tenant shall pay such Impositions and concurrently present to
Landlord satisfactory evidence of such payments. If any Impositions are billed to Landlord or
included in bills to Landlord for Real Estate Taxes, then Tenant shall pay to Landlord all such
amounts within thirty (30) days after receipt of Landlord’s invoice for such Impositions. If
applicable law prohibits Tenant from reimbursing Landlord for an Imposition, but Landlord may
lawfully increase the Base Rent to account for Landlord’s payment of such Imposition, the Base Rent
payable to Landlord shall be increased by notice to Tenant of such increase to net to Landlord the
same return without reimbursement of such Imposition as would have been received by Landlord with
reimbursement of such Imposition.

     7. Use of Premises.

          7.1. Permitted Use. The Premises shall be used solely for the Permitted Use,
including brokerage and financial services, and for no other use or purpose. As ancillary uses
included within the Permitted Use, Tenant shall have the right to

 

 

use the Premises for the
following purposes: a kitchen to provide meals for executives occupying the Premises and their
guests, a gymnasium area, private executive bathrooms, a boardroom, and a trading floor with
expanded bathroom facilities (including bathroom facilities and plumbing outside the Building core
area) for the conduct by Tenant and Tenant’s Affiliates of the purchase and sale of or
investment in securities and other investment vehicles.

          7.2. Prohibited Uses. Tenant shall not do or permit to be done, or bring or keep or
permit to be brought or kept, in or about the Premises, or any other portion of the Complex,
anything which (i) is prohibited by, will in any way conflict with, or would invalidate, any
Requirements; or (ii) would cause a cancellation of any insurance policy carried by Landlord or
Tenant, or give rise to any defense by an insurer to any claim under any such policy of insurance,
or increase the existing rate of or adversely affect any insurance policy carried by Landlord, or
subject Landlord to any liability or responsibility for injury to any person or property; or (iii)
will in any way obstruct or interfere with the use or occupancy of other tenants or occupants of
the Complex, or injure them. If Tenant does or permits anything to be done which increases the
cost of any policy of insurance carried by Landlord, or which results in the need, in Landlord’s
judgment, for additional insurance to be carried by Landlord or Tenant with respect to any portion
of the Complex, Landlord shall so notify Tenant, with reasonable supporting information after
acquiring knowledge of such circumstance. Upon receipt of such notice,
Tenant shall either (A) cease the activity causing such circumstance within three (3) days
after receipt of Landlord’s notice, or (B) reimburse Landlord, upon demand, for any such
additional premiums or costs, and/or procure such additional insurance, at Tenant’s sole cost and
expense.

 

 

Invocation by Landlord of such right shall not limit or preclude Landlord from prohibiting
Tenant’s impermissible use that gives rise to the additional insurance premium or requirement or
from invoking any other right or remedy available to Landlord under this Lease, after the giving of
notice and the expiration of any applicable cure period. Tenant shall not bring into the Premises,
or any portion thereof, any furniture, fixtures and/or equipment, and/or make any Alterations, the
aggregate weight of which would exceed the specified live load capacity of each Floor of the
Premises of eighty (80) pounds per square foot.

          7.3. Compliance With Requirements. Tenant, at its cost and expense, shall promptly
comply with all Requirements applicable to the Premises, or the rights, duties and obligations of
Tenant under this Lease, or any activities by or on behalf of Tenant undertaken in any portion of
the Complex. The final, non-appealable judgment of any court of competent jurisdiction, or the
admission of Tenant in any action or proceeding involving Tenant, whether or not Landlord is party
thereto, that Tenant is in non-compliance with any Requirement shall be conclusive of that fact.
Tenant shall make all structural changes and other capital improvements to any portion of the
Complex which are necessitated, in whole or in part, by (i) Tenant’s use or occupancy of, or
business conducted in, the Premises under Requirements enacted, promulgated or imposed directly on
occupants of space in office buildings (as distinguished from Requirements imposed generally on
office buildings as such) or Tenant’s particular use, manner of use or occupancy of the
Premises (as distinguished from general corporate and administrative offices as such), (ii)
any acts or omissions of Tenant, its employees, agents, contractors, invitees or licensees, or
(iii) Alterations.

 

 

          7.4. No Nuisance. Tenant shall not (i) do or permit anything to be done in or about
any portion of the Complex, which would injure or annoy, or obstruct or interfere with the rights
of, Landlord or other occupants of the Complex, or others lawfully in or about the Complex; (ii)
use or allow the Premises to be used in any manner inappropriate for a first-class office building,
or for any unlawful purposes; or (iii) cause, maintain or permit any nuisance or waste in, on or
about the Premises, or any other portion of the Complex.

          7.5. Compliance With Environmental Laws; Use of Hazardous Materials. Without
limiting the generality of Section 7.3 above, Tenant shall at all times comply with all
applicable Environmental Laws with respect to the use and occupancy of any portion of the Complex
pursuant to this Lease. Tenant shall not generate, store, handle, or otherwise use, or allow, the
generation, storage, handling, or use of, Hazardous Materials in the Premises or transport the same
through the Complex, except in accordance with the Rules and Regulations of the Complex. In the
event of a release of any Hazardous Materials caused by, or due to the act or neglect of, Tenant,
Tenant shall immediately notify Landlord and take such remedial actions as Landlord may direct in
Landlord’s sole discretion as necessary or appropriate to abate, remediate and/or clean up the
same. If so elected by Landlord by notice to Tenant, Landlord shall take such remedial actions on
behalf of and at Tenant’s sole cost and expense. In any event, Landlord shall have the
right, without liability or obligation to Tenant, to direct and supervise Tenant’s remedial
actions and to specify the scope
thereof and specifications therefor. Tenant shall use, handle, store and transport any
Hazardous Materials hereunder in accordance with the applicable requirements of Environmental Laws,
and shall notify Landlord of any notice of violation of Environmental Laws which it receives from
any

 

 

governmental agency having jurisdiction. As used herein, Tenant includes its employees, agents,
contractors, invitees or licensees.

     8. Building Services.

          8.1. Maintenance of Complex. Landlord shall operate and maintain the Common Areas,
and maintain all exterior landscaping, the windows in the Building, the mechanical, plumbing and
electrical equipment serving the Building, the telephone cable distribution system serving the
Building to the telephone terminal on each Floor, the common shafts, stacks, pipes, conduits, and
ducts containing such equipment and systems and the space containing them, and the structure of the
Building, in first-class condition, except for ordinary (but not excessive) wear and tear, damage
by casualty or condemnation, or damage occasioned by the act or omission of Tenant or Tenant’s
employees, agents, contractors, licensees or invitees, which damage shall be repaired by Landlord
at Tenant’s expense. Landlord shall have the right, exercised by Landlord in its sole discretion,
in connection with its maintenance of the Complex hereunder, (i) to change the arrangement and/or
location of any Common Area amenity, installation or improvement, or other public parts of the
Complex, and (ii) to utilize portions of the Common Areas from time to time for entertainment,
displays, product shows, leasing of kiosks or such other uses that in Landlord’s sole judgment tend
to attract the public.

     8.2. Building-Standard Services. Landlord shall cause to be furnished to Tenant: (i)
tepid and cold water to those points of supply and in volumes provided for general use of tenants
in the
Building; (ii) electricity up to the Wattage Allowance (on a daily, non-cumulative basis) for
lighting and the operation of electrically powered office equipment; (iii) heating, ventilation and
air conditioning to the extent

 

 

reasonably required for the comfortable occupancy by Tenant of the
Premises during the period from 8:00 a.m. to 6:00 p.m. on weekdays and 8:00 a.m. to 2:00 p.m. on
Saturdays (except Building holidays reasonably determined by Landlord and with reference to other
first-class buildings in the San Francisco Downtown Financial District); (iv) passenger elevator
service; (v) freight elevator service subject to then applicable Building-standard procedures and
scheduling; (vi) lighting replacement for Building-standard lights; (vii) restroom supplies; (viii)
window washing as determined by Landlord; and (ix) janitor service on a five (5) day per week basis
(excluding Building holidays), except for portions of the Premises used for preparing or consuming
food or beverages. Landlord may establish in the Premises or other portions of the Complex such
measures as it deems necessary or appropriate to conserve energy, including automatic switching of
lights and/or more efficient forms of lighting. When and if so elected by Landlord, in its sole
discretion from time to time or at any time, Landlord may also provide security services for the
Complex (but not individually for Tenant or the Premises) of such scope and detail as Landlord may
determine in its sole discretion. Landlord shall not be liable in any manner to Tenant, any
occupant of the Premises holding under Tenant, or their respective employees, invitees, licensees,
contractors or agents, for any acts (including criminal acts) of others, or for any direct,
indirect, or consequential damages, or other loss or damage, bodily injury or death, related to any
malfunction, circumvention or other failure of any security services which Landlord elects to
provide, or on account of Landlord’s election not to provide any security service or services, or
for the failure of any security services
to prevent bodily injury, death, or property damage, or loss, or to apprehend any person
suspected of causing such injury, death, damage or loss.

 

 

          8.3. Interruption or Unavailability of Services. Landlord shall not be in default
hereunder or liable for any damages directly or indirectly resulting from, Rent shall not be
abated, no constructive or other eviction shall be construed to have occurred, and Tenant shall
not, except as hereinafter provided, be relieved from any of its obligations under this Lease, by
reason of failure to furnish or delay in furnishing any maintenance or services under this
Article 8, regardless of the cause of such failure. Landlord shall use reasonable efforts
promptly to remedy any failure or interruption in the furnishing of such maintenance or services,
and shall endeavor to keep Tenant reasonably apprised of the progress of such efforts. Landlord
makes no warranty or representation to Tenant regarding the adequacy or fitness of the heating, air
conditioning or ventilation equipment in the Complex or the Premises to maintain temperatures that
may be required for or because of any of Tenant’s equipment which uses other than the
fractional horsepower normally required for standard office equipment and Landlord shall have no
liability for loss or damage suffered by Tenant or others in connection therewith. In the event of
an interruption or failure of utilities, which failure or interruption prevents Tenant from
accessing, using or occupying the Premises under this Lease, in whole or in part, and such failure
or interruption constitutes an insured loss for which rental income insurance proceeds are
available to Landlord, then Tenant shall be entitled to an abatement of Rent for the period that
Tenant is prevented from accessing, using or occupying the Premises, in whole or in part, as a
result of such failure or interruption to the extent rental income insurance proceeds are
so available. Such abatement shall be based on the extent to which such failure or
interruption interferes with access to, or the use and occupancy of, the Premises. Tenant may
request, once

 

 

during each calendar year during the Term, confirmation whether Landlord is then
carrying rental income insurance, whether and to the extent such rental income insurance would give
rise to an abatement of Rent hereunder, and the duration of coverage of such rental abatement
insurance.

          8.4. Tenant’s Use of Excess Electricity and Water; Premises Occupancy Load. Tenant
shall not, without Landlord’s prior consent, given or withheld in Landlord’s sole discretion, (i)
install in the Premises, (A) lighting, equipment, and/or apparatus, the aggregate average monthly
power usage of which exceeds the Wattage Allowance, or which requires a voltage other than 110
volts single-phase, (B) heat generating or heat sensitive equipment, or lighting other than
Building-standard lights,(C) supplementary air conditioning facilities, (D) Alterations which
reconfigure the Premises, or fixtures therein, affecting the temperature otherwise maintained by
the Building-standard heating, ventilation and air conditioning system, or (E) equipment in the
Premises which requires a separate temperature-controlled room, or (ii) permit occupancy levels in
excess of one person per two hundred (200) feet of Rentable Area. If, pursuant to this Section
8.4, Landlord consents to any installation or occupancy pursuant to clauses (i) or (ii) above,
Landlord may, at Landlord’s election after notice to Tenant or upon Tenant’s request, install
supplementary air conditioning facilities in the Premises, or otherwise modify the heating,
ventilation and air conditioning serving the Premises, and/or increase the supply of electricity to
the Premises, in order to maintain the temperature otherwise
maintained by the Building heating, ventilation, and air conditioning system, and/or to supply
any increase in the electricity demand of the Premises, and/or to serve any separate
temperature-controlled room. Tenant shall pay the cost of any

 

 

transformers, additional risers,
panel boards and all other facilities if, when and to the extent installed hereunder, and all
capital, maintenance and service costs of installing, supplying and maintaining any facilities or
utilities under this Section 8.4. Landlord, at its election and at Tenant’s expense, may
also install and maintain an electric current meter or water meter (together with all necessary
wiring and related equipment) at the Premises to measure the power and/or water usage of
electricity and/or heating, ventilation and air conditioning equipment, or may otherwise cause such
usage to be measured by reasonable methods.

          8.5. Provision of Additional Services. If Tenant desires services in additional
amounts or at different times than set forth in Section 8.2 above, or any other services
that are not provided for in this Lease, Tenant shall make a request for such services to Landlord
with such advance notice as Landlord may reasonably require. Tenant acknowledges that the 37th and
38th Floors in the Premises possess unique features requiring additional services and that Landlord
will provide such additional services pursuant to this Section 8.5, which additional
services include a separately metered condenser water pump for supplemental cooling for the 38th
Floor, separately metered natural gas for any kitchen, and supplementary janitorial service for
cleaning the kitchen, any gymnasium area and any private bathrooms. If (and for the 37th and 38th
Floors, when) Landlord provides such services to Tenant, Tenant shall pay (i) Landlord’s then
Building-standard unit charge to provide supplemental cooling, (ii) Landlord’s actual cost to
provide electricity, and (iii)
Landlord’s actual cost to provide any other services plus an administrative fee equal to
twenty percent (20%) of such actual costs of providing such services under this clause (iii).
Tenant shall make payment of amounts due hereunder

 

 

within thirty (30) days after Tenant’s receipt
of Landlord’s invoice.

          8.6. Standards With Respect to Certain Services; Availability of Certain Building
Installations. The standards set forth in this Section 8.6 shall govern the provision
of certain Building services delivered by Landlord under this Article 8. In addition,
Tenant shall have the right to utilize certain Building installations in accordance with the
provisions of this Section 8.6.

               a. Heating, Ventilation and Air Conditioning. The base Building heat, ventilation and
air conditioning system is designed to provide a maximum air volume (i) delivered to each of Floors
36 and 37 included in the Premises of 12,400 cubic feet per minute, and (ii) delivered to Floor 38
of the Premises of 8,400 cubic feet per minute, and with the temperature of air at the point of
delivery of 55E Fahrenheit. Subject to the foregoing minimum performance criteria, Tenant shall be
solely responsible for ambient air temperature within the Premises from the point of delivery of
air to the Premises in accordance with the foregoing performance criteria.

               b. Electrical Capacity. Tenant shall have the right to have allocated to Tenant up to
Tenant’s Highrise Percentage Share of the net capacity of the Building power and lighting
switchboard providing electrical service to the highrise portion of the Building. Landlord shall
have the right to change the total capacity and net capacity of the power and lighting switchboard
for the Building, including the power and lighting switchboard serving the highrise portion of the
Building, from
time to time, or at any time, as deemed necessary or required by Landlord in its sole
judgment. For purposes hereof, “net capacity” refers to the total capacity of the
power and lighting switchboard serving the highrise portion of the Building,

 

 

excluding allocations
of such capacity for Building services and Common Areas, or required to comply with applicable
Requirements, or as changed by Landlord hereunder.

               c. Condenser Water for Supplemental Cooling. Tenant shall have the right to have
allocated to Tenant up to Tenant’s Allocable Share of the condenser water for the existing
supplemental cooling system serving Floors 28-38 of the Building. As an additional service
pursuant to Section 8.5 above, Tenant shall reimburse Landlord for (i) Landlord’s
charges for Tenant’s usage of such condenser water, and (ii) Tenant’s Allocable Share
of Landlord’s charges for maintaining the system that supplies such condenser water.
Landlord shall have the right to install, at Tenant’s cost and expense, meters to measure
Tenant’s usage hereunder for purposes of calculating the charges payable by Tenant for such
condenser water pursuant to Section 8.5 above.

               d. Existing Telecommunication Facility. Tenant shall have the right to utilize for
telecommunication services to the Premises the twisted pair telephone cables presently in place in
the Building core which serve the Premises. Landlord shall maintain such twisted pair telephone
cables pursuant to Section 8.1 above, the cost of which is included in Operating Expenses.

               e. Air Shaft. Tenant shall have the right to utilize the existing (but presently
unused) air shaft opening onto the roof of the Building and serving the 36th Floor of the Premises
to provide outside air to the 36th Floor. Tenant shall, at Tenant’s sole cost and expense,
maintain and repair such air shaft. Tenant shall perform such maintenance and repair in accordance
with such rules and procedures as Landlord may from time to time reasonably prescribe by notice to
Tenant. Tenant
shall repair any and all damage to the Building (including the roof) caused by Tenant’s
maintenance and repair of such air

 

 

shaft. Tenant’s use, maintenance and repair of such air
shaft shall not interfere with the operation of other Building systems.

               f. Telecommunication Risers. Tenant shall have the right to cause Landlord, at
Tenant’s cost and expense, to install up to three (3) 4-inch risers in the Building from the
Building basement to the Premises for installation by Tenant of telecommunication facilities and
cables. Landlord shall install such risers upon Tenant’s request pursuant to plans and
specifications prepared by Tenant and approved by Landlord as an Alteration under Article
10 below.

               g. Supplemental Cooling System. Tenant shall have the right to install on the
Building roof up to three (3) air-cooled dual expansion (DX) split system cooling units to provide
supplemental cooling to the Premises, and piping from each such units to the point of entry into
the Premises. Landlord shall have the right to review and approve the location of each such unit,
and Tenant shall design and perform such work, as an Alteration pursuant to Article 10
below. Specifically, but without limiting the generality of the foregoing, Landlord may, at
Tenant’s cost and expense, cause its structural engineer to review Tenant’s plans and
specifications prepared pursuant to Article 10 below to analyze the effect of the placement
of such units on the Building structure and to specify structural upgrades or modifications to the
Building roof necessary to support such units. Tenant shall be solely responsible for the
installation, operation and maintenance of such units, and all installations from such units to the
Premises at Tenant’s sole cost and expense, including repair of any damage to the Complex
caused by such installation, operation and maintenance.

     9. Maintenance of Premises. Tenant shall, at Tenant’s cost and expense, keep the
Premises in good condition and repair, except for ordinary wear and tear, damage by casualty
or

 

 

condemnation, and the maintenance and repair to be performed by Landlord pursuant to Section
8.1 above. Except as specifically set forth in this Lease, Landlord has no obligation to alter,
remodel, improve, repair, decorate or paint the Premises, or any part thereof, or any obligation
respecting the condition, maintenance and repair of the Premises or any other portion of the
Complex. Tenant hereby waives all rights, including those provided in California Civil Code
Section 1941 or any successor statute, to make repairs which are Landlord’s obligation under this
Lease at the expense of Landlord or to receive any setoff or abatement of Rent or in lieu thereof
to vacate the Premises or terminate this Lease.

     10. Alterations to Premises.

          10.1. Landlord Consent; Procedure. Tenant shall not make or permit to be made any
Alterations without Landlord’s prior consent, which as to any Limited Alterations may be given or
withheld in Landlord’s sole discretion. All Alterations shall be made in accordance with
Building-standard procedures, specifications and details, as then established by Landlord, and the
provisions of this Article 10.

          10.2. General Requirements. All Alterations shall be made at Tenant’s cost and
expense. Tenant shall be responsible for compliance with all Requirements in connection with
Alterations. Tenant shall be responsible for the cost of any additional alterations required by
any Requirements to be made by Landlord to any portion of the Complex as a result of Alterations.
Tenant shall promptly commence construction of Alterations and complete the same with due diligence
as soon as possible after commencement in order to cause the least disruption to Complex operations
and occupants
and to continue Tenant’s business in the Premises. Upon completion of any Alterations, Tenant
shall promptly supply to Landlord as-built

 

 

drawings and specifications showing the Alterations as
made and constructed in the affected portions of the Premises. In connection with installing or
removing Alterations, Tenant shall pay Landlord’s reasonable, actual out-of-pocket costs
incurred to review Tenant’s plans, specifications, working drawings, permit applications and
permits, and in connection with Landlord’s response to review of or involvement in change
orders, or in field conditions or circumstances in the field arising during the course of
construction of Alterations. Tenant shall also pay Landlord’s reasonable, actual
out-of-pocket costs incurred to perform any Alterations requested by Tenant to be performed by
Landlord, or required to be performed by Landlord under this Lease, including installation of
risers for the Antennas, Generator and electrical and telecommunication facilities and cables.
Landlord shall not charge a fee over and above such reasonable, actual out-of-pocket costs, but
such reasonable, actual out-of-pocket costs may include fees of contractors or other third party
consultants employed by Landlord to design or install such Alterations. Landlord may also hire one
(1) or more third party consultants to review Tenant’s plans, specifications and working
drawings, permit applications and permits, and to supervise performance of the work of Alterations
performed by Tenant, or by Landlord on behalf of Tenant, in which event Tenant shall reimburse
Landlord for the fees and costs charged by such third party consultants. If Tenant requests that
Landlord (or its agent or third party consultant) administer construction, installation and/or
removal of Alterations by Tenant, Landlord shall provide to Tenant a quotation for a fee payable to
Landlord for such services and, if Tenant approves the amount of such fee, then Landlord (or its
agent or consultant) shall, to the extent requested by Tenant,
provide administration of such construction, installation and/or removal of Alterations, and
Tenant shall pay

 

 

to Landlord the amount of such fee for such administration. Landlord shall, in
connection with Alterations hereunder, submit to Tenant from time to time statements and invoices
of Landlord’s costs and fees, and costs and fees of third party consultants, incurred by
Landlord, together with appropriate backup documentation. Tenant shall pay the amount of such
statement or invoice within thirty (30) days after receipt from Landlord.

          10.3. Removal of Alterations. If, on or before the date Landlord approves Tenant’s
plans and specifications (or other documentation) for any Alterations and appurtenant
installations, Landlord notifies Tenant that Landlord will require Tenant to remove Alterations and
appurtenant installations specified in Landlord’s notice because they exceed or are different from
the then customary building standard installations in Class A office buildings within the San
Francisco Downtown Financial District, then prior to the expiration of the Term or termination of
this Lease, Tenant shall remove any or all such Alterations and appurtenant installations at
Tenant’s cost and expense and restore the Premises to the condition existing immediately prior to
the installation of such Alterations. Tenant acknowledges that examples of Alterations (and
appurtenant installations) which exceed or are different from the then customary building standard
installations in Class A office buildings within the San Francisco Downtown Financial District are
the Antennas, the Generator, the supplemental air cooling units, if any, installed pursuant to
Section 8.6.g above, kitchens, gymnasium areas, private executive bathrooms, stairways and
trading floors. Notwithstanding the foregoing, however, Landlord shall not require Tenant to
remove the kitchen, private restrooms, the boardroom and the stairway existing in the Premises as
of the
Lease Date so long as Tenant does not materially alter the scope or configuration of such
existing

 

 

improvements. In addition to the foregoing right of Landlord to require Tenant to remove
Alterations, prior to the expiration of the Term or earlier termination of this Lease, Tenant, at
its sole cost and expense, shall restore any expanded bathrooms installed by Tenant as an ancillary
use to the Permitted Use under Section 7.1 above to their configuration on the Lease Date
and shall perform all work necessary to bring such restored restrooms into compliance with all
Requirements in effect on the date of Tenant’s reconfiguration of such restrooms. Prior to
the expiration of the Term or earlier termination of this Lease, Tenant shall also remove all
cabling installed by Tenant in under-floor duct systems and in telecommunication closets in each
Floor of the Premises. If Tenant fails to effect removal of Alterations or cabling, or effect
restoration to the extent required pursuant to the foregoing provisions, then Landlord may remove
such Alterations or cabling and perform such restoration and Tenant shall reimburse Landlord for
Landlord’s cost and expense incurred to perform such removal and restoration. Tenant shall repair
at its cost and expense all damage to the Premises or Complex caused by Tenant in performing its
removal or restoration hereunder. Subject to the foregoing provisions regarding removal, all
Alterations (including any above Building standard improvements to the Premises) shall at the
expiration of the Term or termination of this Lease remain on the Premises without compensation to
Tenant.

     11. Liens. Tenant shall keep the Complex free from any liens arising out of any work
performed or obligations incurred by or for, or materials furnished to, Tenant pursuant to this
Lease or otherwise, including by posting of a bond in accordance with the provisions of California
Civil Code Section 3143, or any successor statute. Landlord shall have the
right to post and keep posted on the Premises any notices provided by law or which

 

 

Landlord
may deem to be proper for the protection of Landlord and the Complex from such liens. If Tenant
fails to keep the Complex free of any lien hereunder, then Landlord may take such actions at the
expense of Tenant that Landlord deems necessary or appropriate, in its sole discretion, to prevent,
remove or discharge such liens.

     12. Damage or Destruction.

          12.1. Obligation to Repair. Except as otherwise provided in this Article 12,
if the Premises, or any other portion of the Complex necessary for Tenant’s use and occupancy of
the Premises, are damaged or destroyed by fire or other casualty, Landlord shall, within sixty (60)
days after such event, notify Tenant of the estimated time, in Landlord’s reasonable judgment,
required to repair such damage or destruction. If Landlord’s estimate is not more than one hundred
eighty (180) days from the date of giving such notice, and if Landlord realizes insurance proceeds
sufficient for such purpose, then (i) Landlord shall repair the Premises, and/or the portion of the
Complex necessary for Tenant’s use and occupancy of the Premises, to substantially the condition
existing immediately before such damage or destruction, as permitted by and subject to then
applicable Requirements; (ii) this Lease shall remain in full force and effect; and (iii) Rent
shall abate for such part of the Premises rendered unusable by Tenant in the conduct of the
Permitted Use during the time such part is so unusable, in the proportion that the Rentable Area
contained in the unusable part of the Premises bears to the total Rentable Area of the Premises.
If such damage or destruction renders a part of the Premises unusable by Tenant in the conduct of
its business, but Tenant is prevented thereby from conducting the Permitted Use in the remainder of
the Premises, then the entire
Rent shall abate in

 

 

accordance with clause (iii) above for such period as the entire Premises
is so rendered unusable by Tenant.

          12.2. Landlord’s Election. If Landlord determines that the necessary repairs cannot
be completed within one hundred eighty (180) days after the date of Landlord’s notice, or if
insurance proceeds are insufficient for such purpose, or if Landlord does not have the obligation
to repair or restore the damage or destruction pursuant to Section 12.1, then in any such
event Landlord may elect, in its notice to Tenant pursuant to Section 12.1, to (i)
terminate this Lease or (ii) repair the Premises or the portion of the Complex necessary for
Tenant’s use and occupancy of the Premises pursuant to the applicable provisions of Section
12.1 above. If Landlord determines that the necessary repairs cannot be completed within two
hundred seventy (270) days after the date of Landlord’s notice, then Tenant shall have the
right to terminate this Lease by giving notice of termination to Landlord within fifteen (15) days
after receipt of Landlord’s notice; but if Tenant fails to give such termination notice
within such 15-day period, then Tenant’s termination right shall be void and of no further
force or effect. If Landlord or Tenant terminates this Lease under this Section 12.2, then
this Lease shall terminate as of the date of the event of damage or destruction and any Base Rent
attributable to the period following such termination shall be paid by Landlord to Tenant within
thirty (30) days after either Landlord or Tenant has terminated this Lease, and any Escalation Rent
attributable to the period following such termination shall be paid by Landlord to Tenant within
thirty (30) days following the final determination of the amount thereof pursuant to Article
5 above.

          12.3. Cost of Repairs. Landlord shall pay the cost for repair of the Complex and all
improvements in the Premises,

 

 

other than Alterations. Tenant
shall pay the costs to repair Alterations, except to the extent Landlord’s casualty
insurance covers the costs to repair Alterations. Tenant shall also replace or repair, at Tenant’s
cost and expense, Tenant’s furniture, equipment, trade fixtures and other personal property in the
Premises.

          12.4. Damage at End of Term. Notwithstanding anything to the contrary contained in
this Article 12, if the Premises, or any other portion thereof or of the Complex, are
damaged or destroyed by fire or other casualty within the last three hundred sixty-five (365) days
of the Term, then Landlord shall have the right, in its sole discretion, to terminate this Lease by
notice to Tenant given within ninety (90) days after the date of such event. Notwithstanding
anything to the contrary contained in this Article 12, if the Premises, or any other
portion of the Complex necessary for Tenant’s use and occupancy of the Premises, are damaged
or destroyed by fire or other casualty within the last three hundred sixty-five (365) days of the
Term, then Tenant shall have the right, in its sole discretion, to terminate this Lease by notice
to Landlord given within ninety (90) days after the date of such event. Such termination shall be
effective on the date specified in Landlord’s or Tenant’s notice, but in no event later than
the end of such 90-day period.

          12.5. Waiver of Statutes. The respective rights and obligations of Landlord and
Tenant in the event of any damage to or destruction of the Premises, or any other portion of the
Complex, are governed exclusively by this Lease. Accordingly, Tenant hereby waives the provisions
of any law to the contrary, including California Civil Code Sections 1932(2) and 1933(4), providing
for the termination of a lease upon destruction of the leased property.

     13. Eminent Domain.

 

 

          13.1. Effect of Taking. Except as otherwise provided in this Article 13, if
all or any part of the Premises is taken as a result of the exercise of the power of eminent domain
or condemned for any public or quasi-public purpose, or if any transfer is made in avoidance of
such exercise of the power of eminent domain (collectively, “taken” or a “taking”), this Lease
shall terminate as to the part of the Premises so taken as of the effective date of such taking.
On a taking of a portion of the Premises, Landlord and Tenant shall each have the right to
terminate this Lease by notice to the other given within sixty (60) days after the effective date
of such taking, if the portion of the Premises taken is of such extent and nature so as to
materially impair Tenant’s business use of the balance of the Premises. Such termination shall be
operative as of the effective date of the taking. Landlord may also terminate this Lease on a
taking of any portion of the Complex if Landlord reasonably determines that (i) such taking is of
such extent and nature as to render the operation of the remaining Complex economically infeasible
or to require a substantial alteration or reconstruction of such remaining portion, or (ii) the
amount of the award payable to Landlord under Section 13.2 below, after deducting all costs
and expenses incurred by Landlord in connection with such taking, is not sufficient to restore the
Complex (including the Premises) pursuant to Section 13.3 below. Landlord shall elect
termination under clause (i) or (ii) above by notice to Tenant given within ninety (90) days after
the effective date of such taking or as soon thereafter as possible, and such termination shall be
operative as of the effective date of such taking. Upon a taking of the Premises which does not
result in a termination of this Lease, the Base Rent shall thereafter be reduced as of the
effective date of such taking in

 

 

the proportion that the Rentable
Area of the Premises so taken bears to the total Rentable Area of the Premises.

          13.2. Condemnation Proceeds. In the event of any taking, Landlord shall have the
right to all compensation, damages, income, rent or awards made with respect thereto (collectively
an “award”), including any award for the value of the leasehold estate created by this Lease. No
award to Landlord shall be apportioned and Tenant hereby assigns to Landlord any right of Tenant in
any award made for any taking.

          13.3. Restoration of Premises. On a taking of the Premises which does not result in
a termination of this Lease, Landlord and Tenant shall restore the Premises as nearly as possible
to the condition they were in prior to the taking in accordance with the applicable provisions and
allocation of responsibility for repair and restoration of the Premises on damage or destruction
pursuant to Article 12 above, and both parties shall use any awards received by such party
attributable to the Premises for such purpose.

          13.4. Taking at End of Term. Notwithstanding anything to the contrary contained in
this Article 13, if the Premises, or any other portion thereof or of the Complex, are taken
within the last three hundred sixty-five (365) days of the Term, then Landlord shall have the
right, in its sole discretion, to terminate this Lease by notice to Tenant given within ninety (90)
days after the date of such taking. Such termination shall be effective on the date specified in
Landlord’s notice to Tenant, but in no event later than the end of such 90-day period.

          13.5. Tenant Waiver. The rights and obligations of Landlord and Tenant on any taking
of the Premises or any other portion of the Complex are governed
exclusively by this Lease. Accordingly, Tenant hereby waives the provisions of any law to

 

 

the
contrary, including California Code of Civil Procedure Sections 1265.120 and 1265.130, or any
similar successor statute.

     14. Insurance.

          14.1. Liability Insurance. Landlord, with respect to the Complex, and Tenant, at its
cost and expense with respect to the Complex, shall each maintain or cause to be maintained, from
the Lease Date and throughout the Term, a policy or policies of commercial general liability
insurance with limits of liability not less than Five Million Dollars ($5,000,000.00) general
aggregate limit and combined single limit. Landlord may from time to time increase the limits of
liability for Tenant’s liability insurance when and if Landlord determines such increase is
required adequately to protect the parties named as insureds or additional insureds under such
liability insurance. Each policy shall contain coverage for blanket contractual liability,
personal injury liability, and premises operations, coverage deleting liquor liability exclusions
and, as to Tenant’s insurance, fire legal liability.

          14.2. Landlord Casualty Insurance. Landlord shall maintain, or cause to be
maintained, throughout the Term, a policy or policies of All Risk or Special Form fire and casualty
insurance insuring the Complex (exclusive of foundations and excavations, and exclusive of flood
and/or earthquake coverage, unless otherwise elected by Landlord in its sole discretion).

          14.3. Tenant Casualty Insurance. Tenant, at its cost and expense, shall maintain or
cause to be maintained throughout the Term, a policy or policies of All Risk or Special Form fire
and casualty insurance (including sprinkler leakage and water damage
coverage), insuring the full replacement cost of all Alterations (except to the extent covered
by Landlord’s casualty insurance), the Antennas, the Generator, the air-cooled dual expansion
(DX) split system cooling units installed by Tenant

 

 

pursuant to Section 8.6.g, and Tenant’s
furniture, equipment, trade fixtures and other personal property in the Premises. Landlord (and
any Encumbrancer whose name and address is provided by notice from Landlord to Tenant), shall be
named as a loss payee under such insurance.

          14.4. Form of Policies. All liability insurance required by this Article 14
shall be issued on an occurrence basis by solvent companies qualified to do business in the State
of California, and with a Best & Company rating of A-:VIII or better. Any insurance policy under
this Article 14 may be maintained under a “blanket policy”, insuring other parties and
other locations, so long as the amount and coverage required to be provided hereunder is not
thereby diminished. Tenant shall provide Landlord a copy of each policy of insurance or a
certificate thereof certifying that the policies contain the provisions required hereunder. Tenant
shall deliver such policies or certificates to Landlord within thirty (30) days after the Lease
Date or such earlier date as Tenant or Tenant’s contractors, agents, licensees, invitees or
employees first enter the Premises and, upon renewal, not less than thirty (30) days prior to the
expiration of such coverage. All Tenant’s liability insurance shall provide (i) that
Landlord, Landlord’s managing agent and any other person or entity requested by Landlord, is
designated as an additional insured without limitation as to coverage afforded under such policy;
(ii) for severability of interests or that acts or omissions of one of the insureds or additional
insureds shall not reduce or affect coverage available to any other insured or additional insured;
(iii) that the aggregate liability applies solely to the Complex;
and (iv) that Tenant’s insurance is primary and noncontributory with any insurance carried by
Landlord. All Tenant’s insurance shall provide that the insurer agrees not to cancel or
alter the policy

 

 

without at least thirty (30) days prior written notice to all additional insureds
or loss payees. Any self insurance or self insured retention provisions under, or with respect to,
any insurance policies maintained by Tenant hereunder shall be subject to Landlord’s prior
written approval, which Landlord may give or withhold in its sole discretion, and any deductibles
thereunder shall be commercially reasonable under the circumstances. Upon request by Tenant not
more often than once during each calendar year during the Term, Tenant may request that Landlord
provide to Tenant a certificate or certificates certifying that Landlord’s policies contain
the provisions required under this Article 14 and, upon receipt of such request from
Tenant, Landlord shall cause its insurers to issue such certificates to Tenant.

     15. Waiver of Subrogation Rights. Landlord and Tenant, each for itself, and, to the
extent legally permissible and without affecting any insurance maintained by such party, on behalf
of its insurer, releases and waives any right to recover against the other party for any liability
for: (i) loss or damage to property; (ii) any other direct or indirect loss or damage caused by
fire or other risks, which loss or damage would be covered by any “all risk” or “special form”
policy of insurance or is otherwise insured; or (iii) claims arising by reason of any of the
foregoing, irrespective of any act or neglect of such other party which may have contributed to
such loss or damage. Without limiting the generality of the foregoing, each party shall, to the
extent such insurance endorsement is lawfully available, obtain or cause to be obtained, for the
benefit of the other party, a waiver of any right of subrogation which the insurer of such party
may acquire
against the other party by virtue of the payment of any such loss covered by such insurance.

 

 

     16. Tenant’s Waiver of Liability and Indemnification.

     16.1. Waiver and Release. Except to the extent due to the gross negligence or
willful misconduct of Landlord, Landlord shall not be liable to Tenant or Tenant’s employees,
agents, contractors, licenses or invitees for, and Tenant waives as against and releases Landlord
from, any and all claims for loss or damage to any property or injury, illness or death of any
person in, upon or about the Premises and/or any other portion of the Complex, arising at any time
and from any cause whatsoever (including such claims caused in whole or in part by the act,
omission, or neglect of Landlord, tenants or other occupants of the Complex, and their respective
contractors, licensees, invitees, agents or employees). Specifically, but without limiting the
generality of the foregoing, in no event shall Landlord be liable to Tenant, or Tenant’s
employees, agents, contractors, licensees or invitees, for and Tenant waives as against and
releases Landlord from, any and all claims for consequential or indirect damages (including lost
profits) arising from any cause whatsoever, but excluding claims to the extent due to the gross
negligence or willful misconduct of Landlord. The waiver and release contained in this Section
16.1 extends to the officers, directors, shareholders, partners, employees, agents and
representatives of Landlord.

     16.2. Indemnification of Landlord. Except to the extent due to the gross negligence
or willful misconduct of Landlord, Tenant shall indemnify, defend, protect and hold Landlord
harmless of and from any and all loss, liens, liability, claims, causes of action, damage, injury,
cost or expense arising out of or in connection with, or related to (i) the making of Alterations,
or (ii) injury
to or death of persons or damage to property occurring or resulting directly or indirectly
from: (A) the use or occupancy of, or the conduct of business in, the

 

 

Premises; (B) damage to the
telephone or electrical distribution systems of the Complex caused by Tenant; (C) the use,
generation, storage, handling, release, transport, or disposal by Tenant of any Hazardous Materials
in or about the Premises, or any other portion of the Complex; (D) the installation, operation,
testing, maintenance, repair, replacement and/or removal of the Antennas, the Generator, the
supplemental cooling units pursuant to Section 8.6.g above, and appurtenant installations,
and maintenance and repair of the air shaft pursuant to Section 8.6.e above; (E) any other
occurrence or condition in or on the Premises; and (F) acts, neglect or omissions of Tenant in or
about any portion of the Complex. Tenant’s indemnity obligation extends to Tenant’s employees,
agents, officers, directors, shareholders, partners, members, representatives, contractors,
licensees and invitees, and includes reasonable attorneys’ fees and costs, investigation costs and
all other reasonable costs and expenses incurred by Landlord. Landlord shall have the right to
approve legal counsel proposed by Tenant for defense of any claim indemnified against hereunder or
under any other provision of this Lease. If Landlord disapproves the legal counsel proposed by
Tenant for the defense of any claim indemnified against hereunder, Landlord shall have the right to
appoint its own legal counsel, the reasonable fees, costs and expenses of which shall be included
as part of Tenant’s indemnity obligation hereunder. The indemnification contained in this
Section 16.2 shall extend to and benefit the officers, directors, shareholders, partners,
members, employees, agents and representatives of Landlord.

          16.3. Indemnification of Tenant. Except to the extent due to the negligence or
willful misconduct of Tenant, Landlord shall
indemnify, defend, protect and hold Tenant harmless of and from any and all loss, liens,
liability, claims, causes of action, damage, injury, cost or expense arising out of or in

 

 

connection with, or related to (i) the making of Alterations by Landlord on behalf of Tenant or the
making of any other alterations or additions by Landlord to the Complex, or any portion thereof, or
(ii) injury to or death of persons or damage to property occurring or resulting directly or
indirectly from: (A) acts, neglect or omissions of Landlord, its officers, directors, agents,
employees, invitees or licensees, in or about the Premises or any other portion of the Complex; or
(B) the use, generation, storage, handling, release, transport, or disposal by Landlord or
Landlord’s employees, agents or contractors, of any Hazardous Materials in or about the Premises or
any other portion of the Complex. Landlord’s indemnity obligation includes reasonable attorneys’
fees and costs, reasonable investigation costs and all other reasonable costs and expenses incurred
by Tenant. The indemnification contained in this Section 16.3 shall extend to the
directors, officers, partners, shareholders, members, employees, and agents of Tenant.

     17. Assignment and Subletting.

          17.1. Compliance Required. Except as otherwise provided in Section 17.8
below, Tenant shall not, directly or indirectly, voluntarily or by operation of law, sell, assign
or otherwise transfer this Lease, or any interest herein (collectively, “assign” or “assignment”),
or sublet the Premises, or any part thereof, or permit the occupancy of the Premises by any person
other than Tenant (collectively, “sublease” or “subletting”, the assignee or sublessee under an
assignment or sublease being referred to as a “transferee”), without Landlord’s prior consent given
or withheld in accordance with the express standards and conditions of this
Article 17 and compliance with the other provisions of this Article 17. Any
assignment or subletting made in violation of this Article 17 shall be void. As used
herein, an “assignment” includes any sale or other transfer

 

 

(such as by consolidation, merger or
reorganization) in one or more transactions of a majority of the voting stock of Tenant, if Tenant
is a corporation, or any sale or other transfer in one or more transactions of a majority of the
beneficial interests in Tenant, if Tenant is any other form of entity. Tenant acknowledges that
the limitation on assignment and subletting contained in this Article 17 are expressly
authorized by California Civil Code Section 1955.010, et seq., and are fully
enforceable by Landlord against Tenant.

          17.2. Request by Tenant; Landlord Response.

               a. Notice of Intent to Assign or Sublease; Landlord Recapture Right. If Tenant
intends to effect an assignment, or sublease of all or a portion of the Premises for all or
substantially all of the then remaining Term, then Tenant shall so notify Landlord. Landlord shall
have the right, within thirty (30) days after receipt of Tenant’s notice, (i) to terminate
this Lease in the case of a proposed assignment, or (ii) in the case of a sublease of less than a
full Floor, to terminate this Lease as to the portion of the Premises proposed to be sublet, or in
the case of a sublease of at least a full Floor, to terminate this Lease as to all or a part of the
portion of the Premises proposed to be sublet, except that such termination must be effected with
respect to at least one (1) full Floor. Termination of this Lease pursuant to either clause (i) or
(ii) above shall be effective ninety (90) days after the date of Landlord’s notice to Tenant.
If Landlord so elects a termination, Tenant shall be relieved of all unaccrued obligations
hereunder as to the portion of the Premises as to
which such termination is effected as of the date of termination, other than those obligations
which survive termination of this Lease. If Landlord effects termination pursuant to clause (ii)
above for a partial Floor, then Landlord shall be responsible for

 

 

installing all demising walls and
multi-tenant corridors necessary or required in order to separate the remaining Premises from the
portion of the Premises as to which termination has been effected, Tenant acknowledging in
connection therewith that such separation may reduce the space otherwise available on such Floor
within the Premises in order to allow installation of such demising walls and multi-tenant
corridors. The provisions of this Section 17.2.a shall not apply to any assignment or
sublease effected by Tenant pursuant to Section 17.8 below. If Landlord elects not to
exercise its termination right hereunder with respect to an assignment or subletting, Tenant shall
thereafter be free to effect an assignment or subletting as to which Landlord’s termination
right would otherwise apply under this Section 17.2.a within one hundred eighty (180) days
after the expiration of Landlord’s 30-day notice period hereunder. Upon expiration of such
180-day period, if Tenant has not effected an assignment of subletting as to which Landlord’s
termination right under this Section 17.2.a would otherwise apply, Tenant shall comply with
the provisions of this Section 17.2.a if Tenant thereafter intends to effect an assignment
or sublease as to which Landlord’s termination would otherwise apply under this Section
17.2.a. Landlord’s failure to exercise its termination right under this Section
17.2.a whenever such right arises shall not terminate such right, and such right shall apply in
each instance as to which such right applies pursuant to the provisions of this Section
17.2.a.

               b. Landlord Right to Consent. If Tenant desires to effect an assignment or sublease,
and Landlord does not exercise its right to terminate pursuant to Section 17.2.a above
to the extent it applies, Tenant shall submit to Landlord a request for consent together with
the identity of the parties to the transaction, the nature of the transferee’s proposed business

 

 

use for the Premises, the proposed documentation for and terms of the transaction, and all other
information reasonably requested by Landlord concerning the proposed transaction and the parties
involved therein, including certified financial information, credit reports, the business
background and references regarding the transferee, and an opportunity to meet and interview the
transferee. Within twenty (20) days after the date of Tenant’s request to Landlord, Landlord
shall have the right, by notice to Tenant, to: (i) consent to the assignment or sublease, subject
to the terms of this Article 17; or (ii) decline to consent to the assignment or sublease.

               c. Certain Limitations on Subletting. Except for a sublease effected by Tenant
pursuant to Section 17.8 below, Tenant may only sublease space in the Premises starting
with the then lowest Floor in the group of Floors then included in the Premises in the highrise
portion of the Building, and the lowest Floor then included in the Premises in the midrise portion
of the Building, and thereafter in ascending order, Floor by Floor, in each such group. Tenant may
not sublease space on the 37th Floor in such manner which would prevent utilization of the 37th
Floor for access to the 38th Floor.

          17.3. Conditions for Landlord Approval. Without limiting the grounds on which it may
be reasonable for Landlord to withhold its consent to an assignment or sublease, Tenant
acknowledges that Landlord may withhold its consent in the following instances: (i) if there exists
an Event of Default which remains uncured; (ii) if the transferee is a governmental or
quasi-governmental agency, foreign or domestic; (iii) if the transferee is an existing tenant in
the Building; (iv) if the transferee’s business, use
and/or occupancy of the Premises would (A) violate any of the terms of this Lease or the lease
of any other tenant in the Complex, or (B) in Landlord’s sole judgment,

 

 

not be comparable to
and compatible with the types of use by other tenants in the Building, (C) fall within any category
of use for which Landlord would not then lease space in the Building under its leasing guidelines
and policies then in effect, (D) in Landlord’s reasonable judgment, require any Alterations
which would reduce the value of the existing leasehold improvements in the Premises, or (E) result
in increased density per Floor or require increased services by Landlord; (v) in the case of a
sublease, would result in more than five (5) occupancies in the Premises, or would result in more
than three (3) occupancies on a Floor in the Premises, in each case including Tenant and
subtenants; (vi) in Landlord’s reasonable judgment the business reputation of the transferee is not
consistent with that of other tenants of the Building; or (vii) in the case of a sublease, the rent
payable by the subtenant is less than the then prevailing rate then being received by Landlord for
the lease of comparable space in the Building. If Landlord consents to an assignment or sublease,
the terms of such assignment or sublease transaction shall not be modified without Landlord’s prior
written consent pursuant to this Article 17. Landlord’s consent to an assignment or
subletting shall not be deemed consent to any subsequent assignment or subletting.

          17.4. Costs and Expenses. As a condition to the effectiveness of any assignment or
subletting under this Article 17, Tenant shall pay to Landlord its then specified
processing fee (not exceeding $1,000.00) and all reasonable costs and expenses, including
attorneys’ fees and disbursements, actually incurred by Landlord in evaluating Tenant’s requests
for assignment or sublease, whether or not Landlord consents to an assignment or sublease. Tenant
shall pay
the processing fee with Tenant’s request for Landlord’s consent under Section 17.2.
Tenant shall also pay to Landlord all costs and expenses

 

 

reasonably and actually incurred by
Landlord due to a transferee taking possession of the Premises, including freight elevator
operation, security service, janitorial service and rubbish removal.

          17.5. Payment of Excess Rent and Other Consideration. Tenant shall also pay to
Landlord, promptly upon Tenant’s receipt thereof, one hundred percent (100%) of any and all rent,
sums or other consideration, howsoever denominated, realized by Tenant in connection with any
assignment or sublease transaction in excess of the Base Rent and Escalation Rent payable hereunder
(prorated to reflect the Rent allocable to the portion of the Premises if a sublease), after first
deducting, (i) in the case of an assignment, the unamortized reasonable cost of Alterations paid
for by Tenant (including Alterations for Tenant’s initial occupancy of the Premises) and
reasonable real estate commissions and legal fees paid by Tenant in connection with such assignment
and, (ii) in the case of a sublease, the reasonable cost of Alterations made to the Premises at
Tenant’s cost to effect the sublease, the unamortized reasonable cost of Alterations paid for by
Tenant (including Alterations for Tenant’s initial occupancy of the Premises) located within
the portion of the Premises subleased, and the reasonable amount of any real estate commissions and
legal fees paid by Tenant, all amortized over the term of the sublease.

          17.6. Assumption of Obligations; Further Restrictions on Subletting. Each
assignee shall, concurrently with any assignment, assume all obligations of Tenant under this
Lease, accruing from and after the effective date of the assignment. Each sublease shall be made
subject to this Lease and
all of the terms, covenants and conditions contained herein; and the surrender of this Lease
by Tenant, or a mutual cancellation thereof, or the termination of this Lease in accordance with
its

 

 

terms, shall not work a merger and shall, at the option of Landlord, terminate all or any
existing subleases or operate as an assignment to Landlord of any or all such subleases. No
sublessee shall have the right further to sublet. Any assignment by a sublessee of its sublease
shall be subject to Landlord’s prior consent in the same manner as a sublease by Tenant. No
sublease, once consented to by Landlord, shall be modified without Landlord’s prior consent. No
assignment or sublease shall be binding on Landlord unless the transferee delivers to Landlord a
fully executed counterpart of the assignment or sublease which contains the assumption by the
assignee, or recognition by the sublessee, of the provisions of this Section 17.6, in form
and substance satisfactory to Landlord, but the failure or refusal of a transferee to deliver such
instrument shall not release or discharge such transferee from the provisions and obligations of
this Section 17.6, and shall constitute an Event of Default.

          17.7. No Release. No assignment or sublease shall release Tenant from its
obligations under this Lease, whether arising before or after the assignment or sublease. The
acceptance of Rent by Landlord from any other person shall not be deemed a waiver by Landlord of
any provision of this Article 17. On an Event of Default by any assignee of Tenant in the
performance of any of the terms, covenants or conditions of this Lease, Landlord may proceed
directly against Tenant without the necessity of exhausting remedies against such assignee. No
consent by Landlord to any further assignments or sublettings of this Lease, or to any
modification, amendment or termination of this Lease, or to any extension, waiver or modification
of payment or any other obligations under this
Lease, or any other action by Landlord with respect to any assignee or sublessee, or the
insolvency, or bankruptcy or Event of Default of any such

 

 

assignee or sublessee, shall affect the
continuing liability of Tenant for its obligations under this Lease and Tenant waives any defense
arising out of or based thereon, including any suretyship defense of exoneration. Landlord shall
have no obligation to notify Tenant or obtain Tenant’s consent with respect to any of the foregoing
matters.

          17.8 Right to Assign or Sublet without Landlord’s Consent.

               a. Public Trades; New Equity Members. Notwithstanding the provisions of Section
17.1 above, and subject to the provisions of this Section 17.8, the provisions of this
Article 17 shall not apply to (i) the transfer of stock in Tenant so long as Tenant is a
publicly traded corporation whose stock is listed on a national or regional stock exchange or over
the counter stock exchange or to the issuance of stock in Tenant in a public offering, or (ii) the
admission to Tenant of additional equity members (or, if Tenant has converted its status to a
corporation, the admission of additional equity shareholders), so long as such transactions are not
accomplished pursuant to a plan to transfer effective control of Tenant to one (1) or more third
parties or entities.

          b. Affiliate Transfers. Notwithstanding the provisions of Section 17.1 above,
and subject to the provisions of this Section 17.8.b, Tenant shall have the right to assign
this Lease to, or sublet all or any portion of the Premises to, or permit occupancy of the Premises
by, an Affiliate without Landlord’s consent, but with at least thirty (30) days prior written
notice to Landlord of such assignment or subletting. The effectuation of any transaction shall be
subject to the limitations specified in clauses (i), (ii), (iii), (iv), (v) and
(vi) of Section 17.3, and Sections 17.7 and 17.8, and require compliance with
the provisions of Section 17.6. Tenant shall not

 

 

have an obligation to pay to Landlord the
amounts set forth in Sections 17.4 and 17.5 with respect to any such transaction. The
provisions of this Section 17.8.b shall apply only during such periods as Tenant’s Net
Worth is not less than Twenty-Five Million Dollars ($25,000,000.00). Tenant shall provide the
audited statement of financial condition to verify Tenant’s Net Worth with Tenant’s
notice to Landlord under this Section 17.8.b.

               c. Office Sharing. Upon notice to Landlord, Tenant shall have the right to permit (by
sublease or license) the use of individual offices on each Floor in the Premises (excluding,
however, Floor 38 from such right) by consultants or clients; provided, however, that the maximum
number of such individual offices shall not exceed in the aggregate five (5) times the number of
Floors (including partial Floors) in the Premises.

          17.9. No Encumbrance. Notwithstanding anything to the contrary contained in this
Article 17, Tenant shall have no right to encumber, pledge, hypothecate or otherwise
transfer this Lease, or any of Tenant’s interest or rights hereunder, as security for any
obligation or liability of Tenant.

     18. Rules and Regulations. Tenant shall observe and comply, and shall cause its
sublessees, employees, agents, contractors, licensees and invitees to observe and comply, with the
Rules and Regulations of the Complex, and, after notice thereof, with all modifications and
additions thereto from time to time promulgated in writing by Landlord. Landlord shall not be
responsible to Tenant, or Tenant’s sublessees, employees, agents, contractors, licensees or
invitees, for noncompliance with any Rules and Regulations of the
Complex by any other tenant, sublessee, employee, agent, contractor, licensee, invitee or
other occupant of the Complex.

     19. Entry of Premises by Landlord.

 

 

          19.1. Right to Enter. After reasonable advance notice of not less than twenty-four
(24) hours (except in order to provide regularly scheduled or other routine Building standard
services or additional services requested by Tenant, when no such notice shall be required and
except for emergencies where Landlord shall give notice to the extent feasible under the
circumstances and, in any event, as soon as possible after the occurrence of such emergency),
Landlord and its authorized agents, employees, and contractors may enter the Premises at any time
and from time to time to: (i) inspect the same; (ii) determine Tenant’s compliance with its
obligations hereunder; (iii) exhibit the same to prospective purchasers, lenders or tenants
(subject to reasonable security measures agreed to from time to time by Landlord and Tenant); (iv)
supply any services to be provided by Landlord under this Lease; (v) post notices of
nonresponsibility or other notices permitted or required by law; (vi) make repairs, improvements or
alterations, or perform maintenance in or to, the Premises or any other portion of the Complex,
including Building systems; and (vii) perform such other functions as Landlord deems reasonably
necessary or desirable. Landlord may also grant access to the Premises to government or utility
representatives, and bring and use on or about the Premises such equipment as reasonably necessary
to accomplish the purposes of any entry made under this Section 19.1. Landlord shall use
commercially reasonable efforts to effect all entries and perform all work hereunder in such manner
as to minimize interference with Tenant’s use and occupancy of the Premises, and in
conformity with reasonable security measures agreed to by Landlord and Tenant from time to
time. Landlord shall have and retain keys with which to unlock all of the doors in or to the
Premises, and Landlord shall have the right to use any and all

 

 

means which Landlord may deem proper
in an emergency in order to obtain entry to the Premises, including secure areas.

          19.2. Tenant Waiver of Claims. Except due to the gross negligence or willful
misconduct of Landlord, Tenant waives any claim for damages for any inconvenience to or
interference with Tenant’s business, or any loss of occupancy or quiet enjoyment of the Premises,
or any other loss, occasioned by any entry effected or work performed under this Article
19, and Tenant shall not be entitled to any abatement of Rent by reason of the exercise of any
such right of entry or performance of such work. Specifically, but without limiting the generality
of the foregoing, in no event shall Landlord be liable to Tenant, or Tenant’s employees,
agents, contractors, licensees or invitees, for and Tenant waives as against and releases Landlord
from, any and all claims for consequential or indirect damages (including lost profits) arising
from such entry or any work performed, but excluding claims to the extent due to the gross
negligence or willful misconduct of Landlord. No entry to the Premises, or work performed in or
about the Premises under this Article 19, shall constitute a forcible or unlawful entry
into, or a detainer of, the Premises or an eviction, actual or constructive, of Tenant from the
Premises, or any portion thereof.

     20. Default and Remedies.

          20.1. Events of Default. The occurrence of any of the following events shall
constitute an “Event of Default”:

               a. Nonpayment of Rent. Failure to pay any Rent when due.

               b. Unpermitted Assignment. An assignment or sublease made in contravention of any of
the provisions of Article 17 above.

               c. Abandonment. Abandonment of the Premises for a continuous period in excess of ten
(10) days. For purposes

 

 

hereof, “abandonment” means cessation by Tenant of the conduct of its
business in the Premises and removal from the Premises of the personal property, equipment and
furnishings used by Tenant in its business in the Premises, with intent never to return.

               d. Other Obligations. Failure to perform or fulfill any other obligation, covenant,
condition or agreement under this Lease.

               e. Bankruptcy and Insolvency. A general assignment by Tenant for the benefit of
creditors, the liquidation of Tenant, any action or proceeding commenced by Tenant under any
insolvency or bankruptcy act or under any other statute or regulation for protection from
creditors, or any such action commenced against Tenant and not discharged within thirty (30) days
after the date of commencement; the employment or appointment of a receiver or trustee to take
possession of all or substantially all of Tenant’s assets or the Premises; the attachment,
execution or other judicial seizure of all or substantially all of Tenant’s assets or the Premises,
if such attachment or other seizure remains undismissed or undischarged for a period of ten (10)
days after the levy thereof; the admission by Tenant in writing of its inability to pay its debts
as they become due; or the filing by Tenant of a petition seeking any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any present or future
statute, law or regulation, the filing by Tenant of an answer admitting or failing timely to
contest a material allegation of a petition filed against Tenant
in any such proceeding or, if within thirty (30) days after the commencement of any such
proceeding against Tenant, such proceeding is not dismissed.

          20.2. Tenant Cure Periods. If a time period is specified below for cure of such
Event of Default, then Tenant

 

 

may cure such Event of Default within such time period. The time
periods provided below are exclusive of any other time periods provided by law with respect to cure
of any such Event of Default, and Tenant hereby waives any right under law now or hereinafter
enacted to any other time or cure period, including notice and cure periods under Code of Civil
Procedure §§1161, et seq.

               a. Nonpayment of Rent. For failure to pay Rent, within five (5) days after notice
from Landlord that such Rent is overdue. If Tenant has failed to pay Rent when due more than two
(2) times in any calendar year during the Term (not exceeding an aggregate of five [5] times during
the Term), then no notice or cure period shall apply.

               b. Other Obligations. For failure to perform any obligation, covenant, condition or
agreement under this Lease (other than nonpayment of Rent, an assignment or subletting in violation
of Article 17 or Tenant’s abandonment of the Premises) within thirty (30) days after notice
from Landlord of such failure, or, if the failure is of a nature requiring more than thirty (30)
days to cure, then an additional one hundred twenty (120) days after the expiration of such 30-day
period, but only if Tenant commences cure within such 30-day period and thereafter diligently
pursues such cure to completion within such additional 120-day period. If Tenant has failed to
perform any such obligation, covenant, condition or agreement more than two (2) times in any
calendar year during the
Term (not exceeding an aggregate of five [5] times during the Term), then no notice or cure
period shall apply.

               c. No Cure Period. No cure period shall apply for any Event of Default specified in
Sections 20.1.b, 20.1.c or 20.1.e.

 

 

          20.3. Remedies Upon Occurrence of Event of Default. On the occurrence of an Event of
Default which Tenant fails to cure after expiration of the time period for cure, if any, specified
in Section 20.2 above, Landlord shall have the right either (i) to terminate this Lease and
recover possession of the Premises, or (ii) to continue this Lease in effect and enforce all
Landlord’s rights and remedies under California Civil Code Section 1951.4 (by which Landlord may
recover Rent as it becomes due, subject to Tenant’s right to assign pursuant to Article
17). Landlord may, without any liability to Tenant for loss or damage thereto or loss of use
thereof, store any property of Tenant located in the Premises at Tenant’s expense or otherwise
dispose of such property in the manner provided by law. If Landlord does not terminate this Lease,
Tenant shall in addition to continuing to pay all Rent when due, also pay Landlord’s costs of
attempting to relet the Premises, any repairs and alterations necessary to prepare the Premises for
such reletting, and brokerage commissions and attorneys’ fees incurred in connection therewith,
less the rents, if any, actually received from such reletting. Notwithstanding Landlord’s election
to continue this Lease in effect, Landlord may at any time thereafter terminate this Lease pursuant
to this Section 20.3.

          20.4. Damages Upon Termination. If and when Landlord terminates this Lease pursuant
to Section 20.3, Landlord may exercise all its rights and remedies available under
California Civil Code Section 1951.2, including the right to recover from Tenant 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 Rent loss that the Tenant proves could have been
reasonably avoided. As used herein and in Civil Code Section 1951.2, “time of award” means either
the date upon which Tenant pays to Landlord the amount recoverable by Landlord, or

 

 

the date of
entry of any determination, order or judgment of any court or other legally constituted body
determining the amount recoverable, whichever occurs first.

          20.5. Computation of Certain Rent for Purposes of Default. For purposes of computing
unpaid Rent pursuant to Section 20.4 above, Escalation Rent for the balance of the Term
shall be determined by averaging the amount paid by Tenant as Escalation Rent for the calendar year
prior to the year in which the Event of Default occurred (or, if the prior year is the Base Year or
such Event of Default occurs during the Base Year, Escalation Rent shall be based on Landlord’s
operating budget for the Building for the Base Year), increasing such average amount for each
calendar year (or portion thereof) remaining in the balance of the Term at a per annum compounded
rate equal to the mean average rate of increase for the preceding five (5) calendar years in the
United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index (All Urban
Consumers, All Items, 1982-1984 = 100) for the Metropolitan Area of which San Francisco,
California, is a part, and adding together the resulting amounts. If such Index is discontinued or
revised, such computation shall be made by reference to the index designated as the successor or
substitute index by the United States Department of Labor, Bureau of Labor Statistics, or its
successor agency, and if none is designated, by a comparable index as determined by Landlord in its
sole discretion, which would likely achieve a comparable result to that achieved by the
use of the Consumer Price Index. If the base year of the Consumer Price Index is changed,
then the conversion factor specified by the Bureau, or successor agency, shall be utilized to
determine the Consumer Price Index.

          20.6. Landlord’s Right to Cure Defaults. If Tenant fails to pay Rent (other than
Base Rent and Escalation Rent)

 

 

required to be paid by it hereunder, or fails to perform any other
obligation under this Lease, and Tenant fails to cure such Event of Default within the applicable
cure period, if any, specified in Section 20.2 above, then Landlord may, without waiving or
releasing Tenant from any of its obligations or such Event of Default, make any such payment or
perform such other obligation on behalf of Tenant. All payments so made by Landlord, and all costs
and expenses incurred by Landlord to perform such obligations, shall be due and payable by Tenant
as Rent immediately upon receipt of Landlord’s demand therefor. If Landlord enters the Premises,
or any portion thereof, in order to effect cure hereunder, Tenant waives all claims for damages
which may be caused by Landlord’s so entering the Premises and Tenant shall indemnify,
defend, protect and hold Landlord, its officers, directors, shareholders and partners, members,
employees, agents and representatives, harmless from and against any and all loss, liability, cause
of action, damage, cost or expense (including reasonable attorneys’ fees) resulting from any
actions of Landlord to perform obligations on behalf of Tenant hereunder. No entry by Landlord to
the Premises or obligations performed by Landlord in the Premises under this Section 20.6
shall constitute a forcible or unlawful entry into, or a detainer of, the Premises, or an eviction,
actual or constructive, of Tenant from the Premises, or any portion thereof.

          20.7. Waiver of Forfeiture. Tenant hereby waives Code of Civil Procedure
§1179,
Civil Code §3275, and all such similar laws now or hereinafter enacted which would
entitle Tenant to seek relief against forfeiture in connection with any termination of this Lease.

          20.8. Remedies Cumulative. The rights and remedies of Landlord under this Lease are
cumulative and in addition to, and not in lieu of, any other rights and remedies available to

 

 

Landlord at law or in equity. Landlord’s pursuit of any such right or remedy shall not constitute
a waiver or election of remedies with respect to any other right or remedy.

     21. Subordination, Attornment and Nondisturbance.

          21.1. Subordination, Attornment and Nondisturbance. This Lease and all of Tenant’s
rights hereunder shall be subordinate to any and all Encumbrances, and to any and all advances made
on the security thereof or Landlord’s interest therein, and to all renewals, modifications,
consolidations, replacements and extensions thereof. An Encumbrancer may, however, subordinate its
Encumbrance to this Lease, and if an Encumbrancer so elects by notice to Tenant, this Lease shall
be deemed prior to such Encumbrance. If any Encumbrance to which this Lease is subordinate is
foreclosed, or a deed in lieu of foreclosure is given by Landlord thereunder, Tenant shall attorn
to the purchaser at the foreclosure sale or to the grantee under the deed in lieu of foreclosure;
and if any Encumbrance consisting of a ground lease or underlying lease to which this Lease is
subordinate is terminated, Tenant shall attorn to the lessor thereof. Tenant shall execute,
acknowledge and deliver in the form requested by Landlord or any Encumbrancer, any documents
required to evidence or effectuate the subordination hereunder, or to make this Lease prior to the
lien of any Encumbrance, or to evidence such attornments, but no such document shall diminish
Tenant’s rights or enlarge Tenant’s obligations under this Lease.

          21.2. Nondisturbance. If an Encumbrance to which this Lease is subordinate is
foreclosed, or a deed in lieu of foreclosure is given to the Encumbrancer thereunder, or if any
Encumbrance consisting of a ground lease or underlying lease to which this Lease is subordinate is
terminated, this Lease shall not terminate, and the rights and possession of Tenant under this
Lease shall not be disturbed if (i) no Event of Default then

 

 

exists under this Lease and (ii)
Tenant attorns to the purchaser, grantee, or successor lessor as provided in Section 21.1
above or, if requested, enters into a new lease for the balance of the Term upon the same terms and
provisions contained in this Lease.

     22. Sale or Transfer by Landlord; Lease Non-Recourse.

          22.1. Release of Landlord on Transfer. Landlord may at any time transfer, in whole
or in part, its right, title and interest under this Lease and/or in the Complex, or any portion
thereof. Landlord, or any successor to the original Landlord hereunder, shall provide notice to
Tenant of each such transfer. If the original Landlord hereunder, or any successor to such
original Landlord, transfers (by sale, assignment or otherwise) its right, title or interest in the
Building, all liabilities and obligations of the original Landlord or such successor under this
Lease accruing after such transfer shall terminate, the original Landlord or such successor shall
automatically be released therefrom, and thereupon all such liabilities and obligations shall be
binding upon the new owner. Tenant shall attorn to each such new owner. If in connection with any
transfer affected by the then Landlord hereunder, such Landlord transfers any Security Deposit or
other security provided by Tenant to Landlord for the performance of any obligation of Tenant under
this Lease, then
such Landlord shall be released from any further responsibility or liability for such Security
Deposit or other security.

     22.2. Lease Nonrecourse to Landlord. Notwithstanding that Landlord may be personally
liable for its obligations under this Lease or otherwise, Tenant shall look solely to Landlord’s
interest in the Building for recovery of any damages for breach of this Lease by Landlord or
otherwise, or to enforce or realize upon any judgment in connection therewith. None of the persons
or entities comprising or representing Landlord (whether partners, members, shareholders, officers,
directors, trustees,

 

 

employees, beneficiaries, agents or otherwise) shall ever be personally liable
under this Lease, or for any such damages or judgment, and Tenant shall have no right to effect any
levy of execution against any assets of such persons or entities on account of any such liability
or judgment. Any lien obtained by Tenant to enforce any such judgment, and any levy of execution
thereon, shall be subject and subordinate to all Encumbrances.

     23. Estoppel Certificate.

          23.1. Tenant’s Certificate. On not less than ten (10) days’ prior notice by
Landlord, Tenant shall execute, acknowledge, and deliver to Landlord, certificates as specified by
Landlord certifying: (i) that this Lease is unmodified and in full force and effect (or, if there
have been modifications, that this Lease is in full force and effect, as modified, and identifying
each modification); (ii) each Commencement Date and Expiration Date; (iii) that Tenant has accepted
the Premises then delivered to Tenant under this Lease (or the reasons Tenant has not accepted the
Premises) and if Landlord has agreed in an Addendum to this Lease or elsewhere in this Lease to
make any alterations or improvements to the Premises or otherwise on behalf of Tenant,
that Landlord has properly completed such alterations or improvements (or the reasons why
Landlord has not done so); (iv) the amount of the Base Rent and current Escalation Rent, if any,
and the date to which such Base Rent and Escalation Rent has been paid; (v) whether there are any
existing defenses against the enforcement of Tenant’s obligations under this Lease; (vi) that no
default of Landlord is claimed by Tenant, except as to any defaults specified in the certificate;
and (vii) such other matters as may be reasonably requested by Landlord.

     23.2. Landlord’s Certificate. On not less than ten (10) days prior notice by Tenant
that Tenant desires to enter into an assignment or sublease, or that Tenant requires a

 

 

certificate
hereunder in connection with a transaction (such as a public offering of shares, or a transaction
with an Affiliate or a financing by Tenant) which Tenant desires to undertake, Landlord shall
execute, acknowledge and deliver to Tenant certificates as specified by Tenant, certifying (i) that
this Lease is unmodified and in full force and effect (or, if there have been modifications, that
this Lease is in full force and effect, as modified, and identifying each modification); (ii) each
Commencement Date and Expiration Date; (iii) the amount of the Base Rent and current Escalation
Rent, if any, and the date to which such Base Rent and Escalation Rent has been paid; (iv) whether
there are any existing defenses against the enforcement of Landlord’s obligations under this Lease;
(v) that no Event of Default of Tenant is claimed by Landlord, except as to any Event of Default
specified in the certificate; and (vi) such other matters as may be reasonably requested by Tenant.

          23.3. Effect of Certificate. Any Tenant certificate may be relied upon by any
prospective purchaser of all, or any part or interest in, the Complex or any Encumbrancer and, at
Landlord’s request, Tenant
shall deliver such certificate to any such purchaser or Encumbrancer. In addition, at
Landlord’s request, Tenant shall,
if Tenant is not then a publicly traded entity listed on a national or regional stock exchange
or over the counter stock exchange, provide to Landlord for delivery to any such entity such
information as may reasonably be requested by any such entity. Any Landlord certificate may be
relied upon by any prospective transferee of Tenant’s interest under this Lease or sublease of a
portion of the Premises, or a third party to a transaction requiring such certificate pursuant to
Section 23.2 above, and at Tenant’s request, Landlord shall deliver such certificate to any
such transferee or third party. A party shall not be liable to the requesting party or third
person or entity

 

 

requesting or receiving a certificate hereunder on account of any information
therein contained, notwithstanding the omission for any reason to disclose correct and/or relevant
information, but such party shall be estopped with respect to the requesting party or such third
person or entity from asserting any right or obligation or utilizing any defense which contravenes
or is contrary to such information, except that no such certificate shall waive a party’s rights
with respect to Rent, and no party shall be estopped by such certificate with respect thereto. If
a party fails or refuses to give a certificate hereunder within the time period herein specified,
then the requesting party shall have the right to treat such failure or refusal as a default by the
other party.

     24. No Light, Air, or View Easement. Nothing contained in this Lease shall be
deemed, either expressly or by implication, to create any easement for light and air or access to
any view. Any diminution or shutting off of light, air or view to or from the Premises by any
structure which now exists or which may hereafter be erected, whether by Landlord or any other
person or entity, shall in no
way affect this Lease or Tenant’s obligations hereunder, entitle
Tenant to any reduction of Rent, or impose any liability on Landlord.

     25. Holding Over. No holding over by Tenant shall operate to extend the Term. If
Tenant remains in possession of the Premises after expiration or termination of this Lease, (i)
Tenant shall become a tenant at sufferance upon all the applicable terms and conditions of this
Lease, except that Base Rent shall be increased to equal 150% of the Base Rent then in effect; (ii)
Tenant shall indemnify, defend, protect and hold harmless Landlord, and any tenant to whom Landlord
has leased all or part of the Premises, from any and all claims, liability, loss, damages, costs or
expense (including loss of rent to

 

 

Landlord or additional rent payable by such tenant and reasonable attorneys’ fees) suffered or
incurred by either Landlord or such tenant resulting from Tenant’s failure timely to vacate the
Premises; and (iii) such holding over by Tenant shall constitute an Event of Default.
Landlord’s acceptance of Rent if and after Tenant holds over shall not convert Tenant’s
tenancy at sufferance to any other form of tenancy or result in a renewal or extension of the Term
of this Lease, unless otherwise specified by notice from Landlord to Tenant.

     26. Security Deposit.

          26.1. Security Deposit. If so specified on the Basic Lease Information, Tenant has
deposited with Landlord the Security Deposit, which Security Deposit shall be reduced by
one-twelfth (1/12th) for each of the first eleven (11) months of the Term in accordance with the
following schedule:

	 	 	 
	May 1, 1999
	 	$601,425.00
	June 1, 1999
	 	$565,339.50
	July 1, 1999
	 	$529,254.00
	August 1, 1999
	 	$493,168.50
	September 1, 1999
	 	$457,083.00
	October 1, 1999
	 	$420,997.50
	November 1, 1999
	 	$384,912.00
	December 1, 1999
	 	$348,826.50
	January 1, 2000
	 	$312,741.00
	February 1, 2000
	 	$276,655.50
	March 1, 2000
through end
of Term:
	 	$240,570.00

The Security Deposit shall be held by Landlord as security for the performance by Tenant of all its
obligations under this Lease. If Tenant fails to pay any Rent due hereunder, or otherwise commits
an Event of Default, Landlord may use, apply or retain all or any portion of the Security Deposit
for the payment of any such Rent or for the payment of any other amounts expended

 

 

or incurred by Landlord by reason of such Event of Default, or to compensate Landlord for any loss
or damage which Landlord may incur thereby. Exercise by Landlord of its rights hereunder shall not
constitute a waiver of, or relieve Tenant from any liability for, any Event of Default. If
Landlord so uses or applies all or any portion of the Security Deposit, Tenant shall, within ten
(10) days after demand by Landlord, deposit cash with Landlord in an amount sufficient to restore
the Security Deposit to the applicable amount specified in the schedule above. The Security
Deposit, or so much thereof as has not theretofore been applied by Landlord, shall be returned,
without interest, to Tenant (or, at Landlord’s option, to the last assignee, if any, of Tenant’s
interest under this Lease) within thirty (30) days after the expiration of the Term, or earlier
termination of, this Lease (other than on account of an Event of Default) and after the Premises
have been vacated by Tenant and left in the condition specified by this Lease. Landlord’s receipt
and retention of the Security Deposit shall not create any trust or fiduciary relationship between
Landlord and Tenant and Landlord need not keep the Security Deposit separate from its general
accounts. Upon termination of the original Landlord’s (or any successor landlord’s) interest in
this Lease, the original Landlord (or such successor landlord) shall be released from further
liability with respect to the Security Deposit upon the original Landlord’s (or such successor
landlord’s) compliance with California Civil Code Section 1950.7, or successor statute.

          26.2. Letter of Credit. Tenant may satisfy its obligation to furnish the Security
Deposit by delivery to Landlord of a standby letter of credit in the form attached hereto as
Exhibit D (the “letter of credit”) issued by a national bank with offices in
San Francisco designated by Tenant and reasonably acceptable to Landlord. If the term of the
letter of

 

 

credit expires prior to the expiration of the period during which the Security Deposit is required, the letter of credit has not been
extended or replaced at least sixty (60) days prior to its expiration, Landlord has made written
demand on Tenant for extension or replacement of the letter of credit, and at least ten (10) days
have elapsed after the demand was made without the letter of credit having been extended or
replaced, then Landlord shall be entitled to draw upon the letter of credit and purchase with the
proceeds thereof a time deposit with the bank that issued the letter of credit. Such time deposit
shall be in the name of Landlord, but all interest thereon paid prior to the occurrence of an Event
of Default by Tenant under the Lease shall be paid to Tenant. Upon the occurrence of an Event of
Default by Tenant, Landlord shall have the right to withdraw all or part of the principal amount of
such time deposit and any accrued but unpaid interest thereon and apply the same in the manner
authorized under Section 26.1 above with respect to a Security Deposit.

     27. Waiver. Failure by Landlord to declare an Event of Default upon occurrence
thereof, or delay in taking any action in connection therewith, shall not waive such Event of
Default, but Landlord shall have the right to declare such Event of Default at any time after its
occurrence. To be effective, a waiver of any provision of this Lease, or default, shall be in
writing and signed by the waiving party. Any waiver hereunder shall not be deemed a waiver of
subsequent performance of any such provision or subsequent defaults. The subsequent acceptance of
Rent hereunder, or endorsement of any check by Landlord, shall not be deemed to constitute an
accord and satisfaction or a waiver of any preceding Event of Default, except as to the particular
Rent so accepted, regardless of Landlord’s knowledge of the preceding Event of Default at the time
of acceptance of the Rent. No

 

 

course of conduct between Landlord and Tenant, and no acceptance of
the keys to or possession of the Premises by Landlord before the Expiration Date shall constitute a waiver of
any provision of this Lease or of any Event of Default, or operate as a surrender of this Lease.

     28. Notices; Tenant’s Agent for Service. All notices, approvals, consents,
demands and other communications from one party to the other given pursuant to this Lease shall be
in writing and shall be made by personal delivery, by use of a reputable courier service or by
deposit in the United States mail, certified, registered or Express, postage prepaid and return
receipt requested. Notices shall be addressed if to Landlord, to Landlord’s Address, and if to
Tenant, to Tenant’s Address. Landlord and Tenant may each change their respective Addresses from
time to time by giving written notice to the other of such change in accordance with the terms of
this Article 28, at least ten (10) days before such change is to be effected. Any notice
given in accordance with this Article 28 shall be deemed to have been given (i) on the date
of personal delivery or (ii) on the earlier of the date of delivery or attempted delivery (as shown
by the courier service delivery record or return receipt) if sent by courier service or mailed.

     29. Tenant’s Authority. Tenant, and each of the persons executing this Lease on
behalf of Tenant, represent and warrant that (i) Tenant is a duly formed, authorized and existing
corporation, limited liability company, partnership, trust, or other form of entity (as the case
may be), (ii) Tenant is qualified to do business in California, (iii) Tenant has the full right and
authority to enter into this Lease and to perform all of Tenant’s obligations hereunder, (iv)
Tenant, and its executive committee members, have the full right and authority to conduct the
business operations of Tenant contemplated by the Permitted

 

 

Use (including ancillary uses), and the
conduct of such business will not violate any agreement to which Tenant, or any constituent member of Tenant, is a party, or any administrative or court
order or Requirement to which Tenant, or any constituent member of Tenant, is subject, and (v) each
person signing on behalf of Tenant is authorized to do so. Tenant shall deliver to Landlord, upon
Landlord’s request, such certificates, resolutions, opinion of counsel, or other written assurances
to confirm any of the foregoing matters.

     30. Miscellaneous.

          30.1. No Joint Venture. This Lease does not create any partnership or joint venture
or similar relationship between Landlord and Tenant.

          30.2. Successors and Assigns. Subject to the provisions of Article 17
regarding assignment, all of the provisions, terms, covenants and conditions contained in this
Lease shall bind, and inure to the benefit of, the parties and their respective successors and
assigns.

          30.3. Construction and Interpretation. The words “Landlord” and “Tenant” include the
plural as well as the singular. If there is more than one person or entity comprising Tenant, the
obligations under this Lease imposed on Tenant are joint and several. References to a party or
parties refers to Landlord or Tenant, or both, as the context may require. The captions preceding
the Articles, Sections and subsections of this Lease are inserted solely for convenience of
reference and shall have no effect upon, and shall be disregarded in connection with, the
construction and interpretation of this Lease. Use in this Lease of the words “including”, “such
as”, or words of similar import, when following a general matter, shall not be construed to limit
such matter to the enumerated items or matters whether or not language of nonlimitation (such as
“without limitation”)

 

 

is used with reference thereto. All provisions of this Lease have been negotiated at arm’s length
between the parties and after advice by counsel and other representatives chosen by each party and
the parties are fully informed with respect thereto. Therefore, this Lease shall not be construed
for or against either party by reason of the authorship or alleged authorship of any provision
hereof, or by reason of the status of the parties as Landlord or Tenant, and the provisions of this
Lease and the Exhibits hereto shall be construed as a whole according to their common meaning in
order to effectuate the intent of the parties under the terms of this Lease.

          30.4. Severability. If any provision of this Lease, or the application thereof to
any person or circumstance, is determined to be illegal, invalid or unenforceable, the remainder of
this Lease, or its application to persons or circumstances other than those as to which it is
illegal, invalid or unenforceable, shall not be affected thereby and shall remain in full force and
effect, unless enforcement of this Lease as so invalidated would be unreasonable or grossly
inequitable under the circumstances, or would frustrate the purposes of this Lease.

          30.5. Entire Agreement; Amendments. This Lease, the Exhibits hereto, and any Addenda
identified on the Basic Lease Information, contain all the representations and the entire agreement
between the parties with respect to the subject matter hereof and any prior negotiations,
correspondence, memoranda, agreements, representations or warranties are replaced in total by this
Lease, the Exhibits hereto and such Addenda. Neither Landlord nor Landlord’s agents have made any
warranties or representations with respect to the Premises or any other portion of the Complex,
except as expressly set forth in this Lease. This Lease may be modified or amended only by an agreement in writing signed by both parties.

 

 

          30.6. Governing Law. This Lease shall be governed by and construed pursuant to the
laws of the State of California.

          30.7. Litigation Expenses. If either party brings any action or proceeding against
the other (including any cross-complaint, counterclaim or third party claim) to enforce or
interpret this Lease, or otherwise arising out of this Lease, the prevailing party in such action
or proceeding shall be entitled to its costs and expenses of suit, including reasonable attorneys’
fees and accountants’ fees.

          30.8. Standards of Performance and Approvals. Unless otherwise provided in this
Lease, whenever approval, consent or satisfaction (collectively, an “approval”) is required of a
party pursuant to this Lease or an Exhibit hereto, such approval shall not be unreasonably withheld
or delayed. Unless provision is made for a specific time period, approval (or disapproval) shall
be given within thirty (30) days after receipt of the request for approval. Nothing contained in
this Lease shall limit the right of a party to act or exercise its business judgment in a
subjective manner with respect to any matter as to which it has been (i) specifically granted such
right, (ii) granted the right to act in its sole discretion or sole judgment, or (iii) granted the
right to make a subjective judgment hereunder, whether “objectively” reasonable under the
circumstances and any such exercise shall not be deemed inconsistent with any covenant of good
faith and fair dealing implied by law to be part of this Lease. The parties have set forth in this
Lease their entire understanding with respect to the terms, covenants, conditions
and standards pursuant to which their obligations are to be judged and their performance
measured, including the provisions of Article 17 with respect to assignments and
sublettings.

          30.9. Brokers. Landlord shall pay to Landlord’s Broker a commission in
connection with Landlord’s Broker’s

 

 

negotiation of this Lease pursuant to a separate agreement
between Landlord and Landlord’s Broker; and Landlord’s Broker shall pay to Tenant’s Broker, if any,
a commission in connection with Tenant’s Broker’s negotiation of this Lease pursuant to a separate
agreement between Landlord’s Broker and Tenant’s Broker. Other than such Brokers, Landlord and
Tenant each represent and warrant to the other that no broker, agent, or finder has procured, or
was involved in the negotiation of, this Lease and no such broker, agent or finder is or may be
entitled to a fee, commission or other compensation in connection with this Lease. Landlord and
Tenant shall each indemnify, defend, protect and hold the other harmless from and against any and
all liability, loss, damages, claims, costs and expenses (including reasonable attorneys’ fees)
resulting from claims that may be asserted against the indemnified party in breach of the foregoing
warranty and representation.

          30.10. Memorandum of Lease. Tenant shall, upon request of Landlord, execute,
acknowledge and deliver a short form memorandum of this Lease (and any amendment hereto) in form
suitable for recording. In no event shall this Lease or any memorandum thereof be recorded by
Tenant.

          30.11. Quiet Enjoyment. Upon paying the Rent and performing all its obligations
under this Lease, Tenant may peacefully and quietly enjoy the Premises during the Term as against
all persons or entities claiming by or through Landlord, subject, however, to the provisions of this Lease
and any Encumbrances.

          30.12. Surrender of Premises. Upon the Expiration Date or earlier termination of
this Lease, Tenant shall quietly and peacefully surrender the Premises to Landlord in the condition
called for by this Lease, shall deliver to Landlord any keys to the Premises, or any other portion
of the Complex, and

 

 

shall provide to Landlord the combination or code of locks on all safes,
cabinets, vaults and security systems in the Premises. On or before the Expiration Date or earlier
termination of this Lease, Tenant shall (i) remove all of its personal property from the Premises
and repair at its cost and expense all damage to the Complex caused by such removal, and (ii)
remove from and clear all conduits containing telecommunications and computer cabling within the
Premises serving exclusively the Premises, and disconnect the same from the common Building
telecommunication facilities. All personal property of Tenant not removed hereunder shall be
deemed, at Landlord’s option, to be abandoned by Tenant and Landlord may, without any liability to
Tenant for loss or damage thereto or loss of use thereof, store such property in Tenant’s name at
Tenant’s expense and/or dispose of the same in any manner permitted by law.

          30.13. Building Directory. Landlord shall reserve on the Building directory, or in
any computerized Building directory, up to the number of Building Directory Spaces specified on the
Basic Lease Information for purposes of identifying Tenant’s name, divisions and/or principal
employees. All costs for the initial strips or inputting of names shall be borne by Landlord and
all costs for replacement of such strips or inputting shall be borne by Tenant.

          30.14. Name of Building; Address. Tenant shall not use the name of the Building or
Complex for any purpose other than as the address of the business conducted by Tenant in the
Premises. Tenant shall, in connection with all correspondence, mail or deliveries made to or from
the Premises, use the official Building street address (but without a requirement to reference the
Building name, if any) specified from time to time by Landlord.

 

 

          30.15. First Class. When used in this Lease, the term “first class”
refers to a comparative standard of quality judged in accordance with other comparable Class A
buildings within the San Francisco Downtown Financial District as designated by Landlord from time
to time, or at anytime.

          30.16. Arbitration of Fair Market Rent and Fair Market Renewal Rent. Whenever under
this Lease the determination of fair market rent or fair market renewal rent (hereinafter
collectively denominated “fair market rent”, but without affecting the definition of “fair market
rent” or “fair market renewal rent”, as the case may be, with respect to the determination to be
made with respect thereto hereunder) is to be made by arbitration, such arbitration shall be
conducted in accordance with this Section 30.16. The arbitration shall be conducted and
determined in the City and County of San Francisco, solely in accordance with the provisions of
this Section 30.16. Within ten (10) days after the parties have exchanged their estimates
of fair market rent under the applicable provisions of this Lease, each party shall designate an
arbitrator to determine fair market rent hereunder. The parties’ arbitrators shall, within ten
(10) days after their designation hereunder, select a third arbitrator. If the parties’
arbitrators are unable to agree upon appointment of such third arbitrator within such 10-day
period, then the parties shall attempt to agree on and appoint such third arbitrator within five (5) days after the expiration of such 10-day period.
If the parties are unable to agree on such third arbitrator within such 5-day period, then either
party, on behalf of both, may request appointment of such third arbitrator by the then head
official of the San Francisco office of the American Arbitration Association, and neither party
shall raise any objections as to the appointment made by such official or as to such official’s
full power and jurisdiction to

 

 

entertain the application for and make the appointment. The
arbitrators shall be members of the Appraisal Institute (or its successor organization) with a then
current senior designation of MAI (or then comparable designation) currently certified under the
continuing education program, shall have at least ten (10) years experience in appraising
commercial office properties in the Downtown Financial District. The third arbitrator, if any,
shall not have had a material, ongoing, business relationship with either Landlord or Tenant, or
any of their respective Affiliates, during the 5-year period preceding their appointment hereunder.
The arbitrators shall determine which of the two estimates submitted by the parties pursuant to
the applicable provisions of this Lease is closest to the correct result in the arbitrators’
opinion. The arbitrators shall have no power to select an alternative position or a decision
different from that proposed by either party. The decision in which at least two (2) of the
arbitrators concur shall be final and binding upon the parties, absent fraud or gross error. Upon
failure, refusal or inability of an arbitrator to act, his or her successor shall be appointed in
the same manner as provided for original appointment. The party whose position is not chosen by
the arbitrators shall bear the fees and expenses of the arbitrators. The attorneys’ fees and
expenses of counsel and consultants to the respective parties shall be paid by the respective party
engaging such counsel or consultant. The arbitrators shall
render their decision in writing, with counterpart copies to each party, within thirty (30)
days after the appointment of the third arbitrator. The arbitrators shall have no power to modify
the provisions of this Lease.

          30.17. Tenant Financial Information; Confidentiality. If Tenant is not then a
publicly traded entity listed on a national or regional stock exchange or over the counter stock

 

 

exchange, Tenant shall deliver to Landlord each year during the Term, within twenty (20) days after
completion by or for Tenant, Tenant’s audited statement of financial condition. Such
statement of financial condition shall be held confidential by Landlord. Landlord may, however,
disclose such statement of financial condition (i) to the extent required by any Requirements, (ii)
in any litigation or proceeding between the parties with respect to any dispute between them
regarding this Lease (subject to such protective orders to prevent disclosure and protect the
confidentiality of such financial information as may be available under applicable law, to which
Landlord hereby consents and Landlord shall not oppose), (iii) to the extent required by judicial
process (such as a subpoena duces tecum), after notice by Landlord to Tenant of the receipt of such
judicial process, and subject to Tenant’s right to seek such protective orders to prevent
disclosure and protect the confidentiality of such financial information as may be available in
accordance with applicable law (to which Landlord hereby consents and shall not oppose); (iv) if
such statement of financial condition is generally known to the public or is in the public domain,
other than on account of a breach by Landlord of its obligations under this Section 30.17,
(v) to Landlord’s executives, accountants, attorneys, and other agents and representatives, subject
however to the imposition on such executives, accountants, attorneys and other agents and
representatives by written agreement of the confidentiality
provisions of this Section 30.17, or (iv) to prospective transferees or Encumbrancers
(subject however to the imposition on such transferees of the confidentiality requirements of this
Section 30.17).

          30.18. Parking. Landlord shall make available during the Term for the use by Tenant,
and its officers and employees,

 

 

thirty (30) automobile valet parking spaces on the lower level of
the Complex parking garage, and two (2) self-park center aisle parking spaces on the service level
of the Complex parking garage, to be parked in tandem, such parking to be available with full in
and out privileges. Tenant shall pay Landlord for the parking spaces provided pursuant to this
Section 30.18 at the Building standard monthly parking rate or the parking garage
operator’s standard monthly rate as adjusted and charged from time to time. Tenant’s use of all
other parking spaces not allocated to Tenant hereunder shall be subject to availability. In
addition, if Tenant notifies Landlord that Tenant does not require all or any of such allocated
parking spaces, Landlord may thereafter rent such spaces not required by Tenant to any other party.
Tenant shall pay Landlord, or the parking garage operator, for all parking spaces at the times and
in the manner required by Landlord or such parking garage operator with respect to the operation of
the Complex parking garage.

          30.19. Signage.

               a. Lobby Signage. Subject to any right of Pacific Telesis Group (another tenant of
the Building) to review and approve such signage, Tenant shall have the right to cause Landlord to
provide Tenant with signage in the lobby of the highrise elevator
bank serving Floors 26-38 of
the Building at the location and of the design set forth in Exhibit E hereto if Tenant then
physically occupies the entirety of Floors 36-38 in the Premises. Tenant’s lobby signage rights in
the highrise elevator bank shall be non-exclusive. If, at any time, Tenant does not physically occupy the
entirety of Floors 36-38 in the Premises, then Tenant’s lobby signage rights hereunder shall be
suspended (subject to reinstatement if Tenant thereafter meets such requirements, but also subject
to any lobby signage rights then reposing in any other tenant of the Complex), and Landlord

 

 

shall have the right at Tenant’s cost and expense to remove Tenant’s lobby signage or cause Tenant to
effect such removal at Tenant’s cost and expense. Landlord shall install Tenant’s lobby sign
hereunder at Tenant’s cost and expense. Tenant shall, however, be responsible for obtaining all
necessary permits and approvals from governmental authorities having jurisdiction for the design,
installation and maintenance of Tenant’s lobby sign hereunder. Tenant shall be responsible for
maintaining its lobby sign hereunder unless otherwise elected by Landlord, in which event Landlord
shall maintain Tenant’s lobby sign at Tenant’s cost and expense. Tenant shall reimburse Landlord
for all costs and expenses due from Tenant hereunder within thirty (30) days after receipt of
Landlord’s invoice for such costs and expenses. Tenant’s lobby signage rights under this
Section 30.19 are personal to the signatory Tenant of this Lease, Thomas Weisel Partners
LLC, and may not be assigned or transferred in any manner, including pursuant to Article
17.

               b. Premises Signage. In addition to any other signage provided to Tenant by Landlord,
or which Tenant is entitled to install in the Premises pursuant to this Lease, Tenant shall have
the right to install its logo, or the logo of any of its Affiliates, in the elevator lobby of each
full Floor then contained in the Premises, but only so long as Tenant or such Affiliate physically
occupies such full Floor.

               c. Removal of Signage. At the expiration of the Term or prior termination of this
Lease, Landlord shall have the right, at Tenant’s sole cost and expense, to remove or cause
Tenant to remove all signage installed pursuant to this Section 30.19 and repair all
damage to the Complex caused by such removal.

 

 

          30.20. Exhibits and Addenda. The Exhibits and Addenda, if any, specified in the
Basic Lease Information are by this reference made a part hereof.

          30.21. Survival of Obligations. The indemnity obligations of the parties under this
Lease, and any obligation of a party to make payment of any sum to the other party or a third
person, shall survive the termination or expiration of this Lease.

          30.22. Time of the Essence. Time is of the essence of this Lease and of the
performance of each of the provisions contained in this Lease.

          30.23. Waiver of Trial By Jury. Landlord and Tenant hereby mutually waive any and
all right either may have to request a jury trial in any proceeding at law or in equity in any
court of competent jurisdiction arising out of this Lease.

 

 

          IN WITNESS WHEREOF, the parties have executed this Lease as of the Lease Date.

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	POST-MONTGOMERY ASSOCIATES,

a California general

partnership	 	 	 	THOMAS WEISEL PARTNERS LLC,

a Delaware limited liability

company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	CUSHMAN & WAKEFIELD
	 	 	 	By:
	 	/s/ Shaugn Stanley	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	OF CALIFORNIA, INC.
	 	 	 	 	 	(signature)	 	 
	 

	 	as agent for	 	 	 	 	 	 	 	 
	 

	 	THE PRUDENTIAL INSURANCE	 	 	 	 	 	 	 	 
	 

	 	COMPANY OF AMERICA, a
	 	 	 	 	 	Shaugn Stanley	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	general partner
	 	 	 	 	 	(type or print name)	 	 
	 
	By:
	 	/s/ Agnes Duffy Wyman	 	 	 	Its:	 	CFO	 	 
	 

	 	 	 	 	 	 	 	 	 
	 
	 

	 	(signature)	 	 	 	 	 	 	 	 
	 

	 	Agnes Duffy Wyman	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Its:

	 	General Manager	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	UBS BRINSON, INC.,	 	 	 	 	 	 	 	 
	 

	 	as agent for NLI	 	 	 	 	 	 	 	 
	 

	 	PROPERTIES WEST, INC.,	 	 	 	 	 	 	 	 
	 

	 	a general partner	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Joseph Dobronyi
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	(signature)	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Joseph B. Dobronyi	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(type or print name)	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:
	 	Director	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

 

 

FIRST AMENDMENT TO OFFICE LEASE

     THIS FIRST AMENDMENT TO OFFICE LEASE (this “Amendment”) is made and entered into as of
this 11th day of June, 1999, by and between POST-MONTGOMERY ASSOCIATES, a California general
partnership (“Landlord”), and THOMAS WEISEL PARTNERS GROUP, LLC, a Delaware limited liability
company, formerly known as Thomas Weisel Partners LLC (“Tenant”).

RECITALS:

          This Amendment is made and entered on the basis of the following facts, understandings and
intentions of the parties:

          A. Landlord and Tenant have previously entered into that certain Office Lease, dated December
7, 1998 (the “Lease”), pursuant to the terms and conditions of which Landlord has
leased to Tenant and Tenant has leased from Landlord the Premises located in the Complex.

          B. Tenant desires to expand the Premises by adding to the Premises Floor 35 of the Expansion
Premises.

          C. Landlord and Tenant are willing to add Floor 35 to the Premises, but only if certain
amendments are made to the Lease to implement the addition of Floor 35.

          D. Pacific Telesis Group, a Nevada corporation (“Telesis”), currently leases Floor
35, among other Floors in the

 

 

Building, pursuant to that certain Office Lease, dated March 16, 1987, as amended by (i) that certain letter agreement, dated March 26, 1987, (ii) that certain
First Amendment to Office Lease, dated May 21, 1987, (iii) that certain Acknowledgment, dated May
31, 1989, (iv) that certain Amendment No. 2 to Office Lease, dated March 28, 1997, (v) that certain
Third Amendment to Office Leases, dated February 24, 1998, (vi) that certain Fourth Amendment to
Office Lease, dated August 28, 1998, (vii) that certain Fourth and Fifth Amendments to Office
Leases, dated September 14, 1998, and (viii) that certain Sixth Amendment to Office Lease, dated as
of December 7, 1998 (collectively, the “Primary Telesis Lease”).

          E. Pursuant to that certain Sublease, dated March 1, 1999, between Telesis, as sublessor, and
Tenant, as sublessee (the “Telesis Sublease”), Tenant has subleased from Telesis, and
currently occupies, Floor 35. Prior to the date of the Sublease, Tenant occupied Floor 35 pursuant
to that certain License Agreement between Telesis and Tenant dated February 25, 1999, as amended by
letter agreement dated March 17, 1999 (the “License Agreement”). Landlord and Tenant
have also entered into that certain Continued Occupancy Agreement, dated as of the same date as
this Amendment, to provide certain assurances from Landlord to Tenant of Tenant’s continuing
occupancy of Floor 35 until the expiration of the term of the Primary Telesis Lease on December

 

 

17, 1999.

          F. In order to reflect the foregoing matters and effectuate the addition of Floor 35 to the
Premises, the parties desire to enter into this Amendment.

          NOW, THEREFORE, IN CONSIDERATION of the foregoing Recitals, and the mutual covenants and
promises of the parties contained in this Amendment, the parties agree to amend the Lease as
follows:

          1. Defined Terms. Except as otherwise specified in this Amendment, all terms defined in the
Lease shall have the same meaning when used in this Amendment.

          2. Exercise of Option to Add Floor 35 to Premises. Notwithstanding anything to the contrary
contained in Section 2.4 of the Lease, effective upon the execution and delivery of this Amendment,
Landlord shall be deemed to have given Tenant Landlord’s Expansion Notice as to Floor 35; Tenant
shall be deemed to have exercised its option to add Floor 35 of the Expansion Premises to the
Premises; Tenant’s exercise of such option shall be deemed to have met the criteria for
effectiveness as described in Section 2.4(a) of the Lease; the Base Rent, Base Year and
Commencement Date for Floor 35 shall be as set forth in this Amendment; and Tenant’s right of first
refusal and right of first offer as to Floor 35 set forth in Section 2.5 of the Lease shall be of
no further force or effect.

 

 

          3. Delivery of Floor 35. Landlord shall deliver Floor 35 to Tenant, and Tenant shall accept delivery of Floor 35, as of 12:00 a.m. on December 18,
1999 (the “Floor 35 Lease Date”), in accordance with the provisions of Section 2.4 of
the Lease.

          4. General Terms Upon Which Floor 35 Is Added to the Premises. Except as otherwise provided
in this Paragraph 4, and except as the Lease is otherwise amended by this Amendment, Floor 35 shall
be added to and become a part of the Premises as of the Floor 35 Lease Date, subject to and upon
all of the terms and conditions of the Lease, including the provisions of Article 10 of the Lease
regarding Alterations.

               4.1. Term. The Term for Floor 35 shall commence on the ninetieth (90th) day
following the Floor 35 Lease Date, i.e. on March 17, 2000 (the “Floor 35 Commencement
Date”), and shall end on the Expiration Date, i.e. on March 16, 2007.

               4.2. Rentable Area. Effective as of the Floor 35 Lease Date, the provision of the Basic
Lease Information entitled, “Premises”, shall be amended in its entirety to read as
follows:

			
	     Premises:	 	67,179 square feet of Rentable Area located on the 35th,
36th, 37th and 38th Floors, as shown on the
Floor Plan(s) attached to this Lease as Exhibit A-2

               4.3. Substitution of New Exhibit A-2. Effective as of the Floor 35 Lease Date, Exhibit A to
the Lease shall be

 

 

superseded in its entirety and Exhibit A-2, attached to this Amendment, is
substituted in lieu thereof.

               4.4. Base Rent. Effective as of the Floor 35 Commencement Date, in addition to the Base Rent
payable by Tenant for the Premises demised by the Lease, Tenant shall pay to Landlord as Base Rent
for Floor 35, at the times and in the manner set forth in the Lease, including appropriate
proration of Base Rent given that the Floor 35 Commencement Date is not the first day of the month,
as follows:

	 	 	 	 	 
	 

	 	March 17, 2000	 	 
	 

	 	through March 16, 2001:
	 	$85,792.50 per month
	 
	 	 	 	 
	 

	 	March 17, 2001	 	 
	 

	 	through March 16, 2002:
	 	$87,381.25 per month
	 
	 	 	 	 
	 

	 	March 17, 2002	 	 
	 

	 	through March 16, 2003:
	 	$88,970.00 per month
	 
	 	 	 	 
	 

	 	March 17, 2003	 	 
	 

	 	through March 16, 2004:
	 	$90,558.75 per month
	 
	 	 	 	 
	 

	 	March 17, 2004	 	 
	 

	 	through March 16, 2005:
	 	$92,147.50 per month
	 
	 	 	 	 
	 

	 	March 17, 2005	 	 
	 

	 	through March 16, 2006:
	 	$93,736.25 per month
	 
	 	 	 	 
	 

	 	March 17, 2006	 	 
	 

	 	through March 16, 2007:
	 	$95,325.00 per month

               4.5. Base Year. The Base Year for Floor 35 shall be 2000.

               4.6. Tenant’s Percentage Share. Effective as of the Floor 35 Commencement Date, the
provision of the Basic Lease

 

 

Information entitled, “Tenant’s Percentage Share”, shall be amended in its entirety to read as follows:

          Tenant’s Percentage Share: 10.23%

               4.7. Tenant’s Highrise Percentage Share. Effective as of Floor 35 Commencement Date,
the provision of the Basic Lease Information entitled, “Tenant’s Highrise Percentage
Share”, shall be amended in its entirety to read as follows:

          Tenant’s Highrise Percentage Share: 19.99%

The parties have discovered an error in Tenant’s Highrise Percentage Share for Floor 35 as
stated in the Basic Lease Information. The Basic Lease Information states that percentage as
5.76%, whereas the correct percentage is 5.67%.

               4.8. Payment of Tenant’s Broker Commission Amounts. Landlord shall pay to Landlord’s Broker,
and cause Landlord’s Broker to pay to Tenant’s Broker, a commission in connection with the Brokers’
negotiation of this Amendment pursuant to a separate agreement between Landlord and Landlord’s
Broker. Landlord and Tenant reaffirm with respect to such Brokers the representation and warranty
and indemnity set forth in Section 30.9 of the Lease with respect to this Paragraph 4.8.

               4.9. Amendment to Section 8.6.a. Effective as of the Floor 35 Lease Date, clause (i) of the
first sentence of Section 8.6.a. of the Lease is amended by adding “35,” immediately
preceding “36”.

 

 

          5. Initial Improvements to Floor 35.

               5.1. Definition of Floor 35 Work. Prior to the Floor 35 Commencement Date, Tenant shall
perform certain improvements to Floor 35 to make Floor 35 suitable for Tenant’s initial occupancy of
Floor 35, which improvements are more particularly described in the Floor 35 Work Letter attached
hereto and hereby incorporated herein (the “Floor 35 Work”). The provisions of this
Paragraph 5 and the Floor 35 Work Letter shall govern the performance of the Floor 35 Work.

               5.2. General Requirements. Tenant acknowledges and agrees that all improvements to Floor 35
made during the term of the Primary Telesis Lease require the prior written consent of Landlord and
must be performed pursuant to the provisions of the Primary Telesis Lease. In addition, Tenant
acknowledges and agrees that all improvements made by Tenant to Floor 35 during the term of the
License Agreement and the Sublease, respectively, must also comply with the terms and provisions of
the License Agreement and the Sublease, respectively. Accordingly, Tenant agrees that the Floor 35
Work shall be performed strictly in accordance with the terms and provisions of the License
Agreement, the Sublease, and the Lease (as amended by this First Amendment), as the case may be, in
effect at the time of the performance of the applicable portion of the Floor 35 Work. Without
limiting the generality of the foregoing, Tenant agrees

 

 

that (i) during the term of the License Agreement, Tenant shall not perform any portion of the Floor 35 Work without the prior written
consent of Telesis, unless that portion of the work is specifically permitted by the License Agreement, and Tenant shall not perform any portion of
the Floor 35 Work without the prior written consent of Landlord as provided in the Floor 35 Work
Letter, unless that portion is described in the plans and specifications approved by Landlord
delivered by Huntsman Architectural Group as of February 24, 1999, and identified as Plans 35A-3.0
dated 2/17/99, 35A-4.0 dated 2/16/99, and 35A-0 dated 2/16/99; (ii) during the term of the
Sublease, Tenant shall not perform any portion of the Floor 35 Work without the prior written
consent of Telesis, unless that portion is specifically permitted by the Sublease, and Tenant shall
not perform any portion of Tenant’s Floor 35 Work without the prior written consent of
Landlord as provided in the Floor 35 Work Letter; (iii) in the event of an early termination of the
Primary Telesis Lease during the term of the Continued Occupancy Agreement, Tenant shall not
perform any portion of the Floor 35 Work without the prior written consent of Landlord as provided
in the Floor 35 Work Letter, and (iv) from and after the Floor 35 Lease Date, Tenant shall not
perform any portion of the Floor 35 Work without the prior written consent of Landlord as provided
in the Floor 35 Work Letter. Upon request of Landlord, Tenant shall deliver to

 

 

Landlord evidence of the written consent of Telesis to the portion of the Floor 35 Work performed during the term of
the License Agreement or the Sublease, as applicable.

          6. Additional Directory Spaces. Effective as of the Floor 35 Lease Date, Tenant shall be
entitled to nineteen (19) additional spaces in the Building directory in the Lobby, for a total of
sixty-seven (67) such directory spaces.

          7. Interpretation of Amendment. This Amendment and the Lease shall be construed as a whole
in order to effectuate the intent of the parties to amend the Lease in the manner specified in this
Amendment. All provisions of the Lease affected by this Amendment shall be deemed amended
regardless of whether so specified in this Amendment. Subject to the foregoing, if any provision
of the Lease conflicts with any provision of this Amendment, the provision of this Amendment shall
control.

          8. No Further Amendment. Except as amended by this Amendment, the Lease shall continue in
full force and effect in accordance with its terms.

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

 

 

	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 
	POST-MONTGOMERY ASSOCIATES,	 	 	 	THOMAS WEISEL PARTNERS GROUP,
	a California general	 	 	 	LLC, a Delaware limited
	partnership	 	 	 	liability company
	 
	 	 	 	 	 	 	 	 
	By:

	 	CUSHMAN & WAKEFIELD
	 	 	 	By:
	 	/s/ Shaugn Stanley
	 

	 	 	 	 	 	 	 	 
	 

	 	OF CALIFORNIA, INC.
	 	 	 	 	 	(signature)
	 

	 	as agent for	 	 	 	 	 	 
	 

	 	THE PRUDENTIAL INSURANCE
	 	 	 	 	 	Shaugn Stanley
	 

	 	 	 	 	 	 	 	 
	 

	 	COMPANY OF AMERICA, a
	 	 	 	 	 	(type or print name)
	 

	 	general partner	 	 	 	 	 	 
	 
	 	 	 	 	 	Its:	 	CFO/Partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Agnes Duffy Wyman	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Agnes Duffy Wyman	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its:

	 	General Manager	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	UBS BRINSON, INC.,	 	 	 	 	 	 
	 

	 	as agent for NLI	 	 	 	 	 	 
	 

	 	PROPERTIES WEST, INC.,	 	 	 	 	 	 
	 

	 	a general partner	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Joseph B. Dobronyi	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Joseph B. Dobronyi	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its:

	 	Director	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

SECOND AMENDMENT TO OFFICE LEASE

     THIS SECOND AMENDMENT TO OFFICE LEASE (this “Amendment”) is made and entered into as of
this 11th day of June, 1999, by and between POST-MONTGOMERY ASSOCIATES, a California general
partnership (“Landlord”), and THOMAS WEISEL PARTNERS GROUP, LLC, a Delaware limited liability
company, formerly known as Thomas Weisel Partners LLC (“Tenant”).

RECITALS:

          This Amendment is made and entered on the basis of the following facts, understandings and
intentions of the parties:

          A. Landlord and Tenant have previously entered into that certain Office Lease, dated December
7, 1998 (the “Original Lease”), as amended by that certain First Amendment to Office
Lease, dated June 11, 1999 (the “First Amendment”), which Original Lease and First
Amendment are collectively referred to as the “Lease”, pursuant to the terms and
conditions of which Landlord has leased to Tenant and Tenant has leased from Landlord the Premises
located in the Complex.

          B. Tenant desires to expand the Premises by adding to the Premises Floor 24 of the Expansion
Premises.

          C. Landlord and Tenant are willing to add Floor 24 to the Premises, but only if certain
amendments are made to the

 

 

Lease to implement the addition of Floor 24.

          D. In order to reflect the foregoing matters and effectuate the addition of Floor 24 to the
Premises, the parties desire to enter into this Amendment.

          NOW, THEREFORE, IN CONSIDERATION of the foregoing Recitals, and the mutual covenants and
promises of the parties contained in this Amendment, the parties agree to amend the Lease as
follows:

          1. Defined Terms. Except as otherwise specified in this Amendment, all terms defined
in the Lease shall have the same meaning when used in this Amendment.

          2. Agreement to Add Floor 24 to Premises. Landlord and Tenant hereby agree to add
Floor 24 to the Premises on the terms and conditions set forth in this Amendment.

          3. Delivery of Floor 24. Landlord shall deliver Floor 24 to Tenant, and Tenant shall
accept delivery of Floor 24, as of 12:00 a.m. on January 1, 2000 (the “Floor 24 Lease
Date”), in accordance with the provisions of Section 2.4 of the Original Lease.

          4. General Terms Upon Which Floor 24 Is Added to the Premises. Except as otherwise
provided in this Paragraph 4, and except as the Lease is otherwise amended by this
Amendment, Floor 24 shall be added to and become a part of the Premises as of the Floor 24 Lease
Date, subject to and upon all of the terms and

 

 

conditions of the Original Lease, including the provisions of Article 10 of the Lease regarding Alterations.

               4.1. Term. The Term for Floor 24 shall commence on the ninetieth (90th)
day following the Floor 24 Lease Date; i.e., on March 31, 2000 (the “Floor 24 Commencement
Date”) and shall end on the Expiration Date; i.e., on March 16, 2007. Notwithstanding the
provisions of Section 2.4(b) of the Original Lease to the contrary, Landlord and Tenant agree that
if and when any additional Floor of the Expansion Premises is added to the Premises, Landlord shall
not be required to set the Expiration Date for any such Floor coterminous with the Expiration Date
for Floor 24.

               4.2. Rentable Area. Effective as of the Floor 24 Lease Date, the provision of the
Basic Lease Information entitled, “Premises”, shall be amended in its entirety to read
as follows:

			
	     Premises:	 	86,102 square feet of Rentable Area located on the 24th,
35th, 36th, 37th and 38th Floors,
as shown on the Floor Plan(s) attached to this Lease as Exhibit A-3

               4.3. Substitution of New Exhibit A-3. Effective as of the Floor 24 Lease Date,
Exhibit A-2, which is attached to the First Amendment and which supersedes Exhibit A to the
Original Lease, shall be superseded in its entirety and Exhibit A-3, attached to this
Amendment, is substituted in lieu thereof.

 

 

               4.4. Base Rent. Effective as of the Floor 24 Commencement Date, in addition to the
Base Rent payable by Tenant for the Premises demised by the Original Lease and the First Amendment, Tenant shall pay to
Landlord as Base Rent for Floor 24, at the times and in the manner set forth in the Lease,
including appropriate proration of Base Rent given that the Floor 24 Commencement Date is not the
first day of the month, as follows:

	 	 	 	 	 
	 

	 	March 31, 2000	 	 
	 

	 	through March 16, 2001:
	 	$85,153.50 per month
	 
	 	 	 	 
	 

	 	March 17, 2001	 	 
	 

	 	through March 16, 2002:
	 	$86,730.42 per month
	 
	 	 	 	 
	 

	 	March 17, 2002	 	 
	 

	 	through March 16, 2003:
	 	$88,307.33 per month
	 
	 	 	 	 
	 

	 	March 17, 2003	 	 
	 

	 	through March 16, 2004:
	 	$89,884.25 per month
	 
	 	 	 	 
	 

	 	March 17, 2004	 	 
	 

	 	through March 16, 2005:
	 	$91,461.17 per month
	 
	 	 	 	 
	 

	 	March 17, 2005	 	 
	 

	 	through March 16, 2006:
	 	$93,038.08 per month
	 
	 	 	 	 
	 

	 	March 17, 2006	 	 
	 

	 	through March 16, 2007:
	 	$94,615.00 per month

               4.5. Base Year. The Base Year for Floor 24 shall be 2000.

               4.6. Tenant’s Percentage Share.

                    (a) Effective as of the date hereof, the provision of the Basic Lease Information entitled,
“Tenant’s

 

 

Percentage Share”, as amended by the First Amendment, shall be amended
in its entirety to read as follows:

          Tenant’s Percentage Share: 7.33%

          Effective as of the Floor 24 Lease Date, Tenant’s Percentage Share for
Floor 24 shall be: 2.88%

          Effective as of the Floor 35 Lease Date, Tenant’s Percentage Share for Floor
35 shall be : 2.90%

                    (b) Effective as of the date hereof, Section 1.1 of the Original Lease, entitled,
“Escalation Rent”, shall be amended in its entirety to read as follows:

          Escalation Rent: The Tenant’s Percentage Share applicable to
each portion of the Premises of the total Dollar increase, if any, in Building
Operating Expenses as paid or incurred by Landlord in each calendar year, or part
thereof, after the Base Year applicable to each portion of the Premises, over the
amount of Base Building Operating Expenses, and the Tenant’s Percentage Share
applicable to each portion of the Premises of the total Dollar increase, if any, in
Building Property Taxes attributable to the tax year or years occurring in each such
calendar year over the Base Building Property Taxes for the tax year or years
occurring in the Base Year applicable to each portion of the Premises.

               4.7. Payment of Tenant’s Broker Commission Amounts. Landlord shall pay to Landlord’s
Broker, and cause Landlord’s Broker to pay to Tenant’s Broker, a commission in connection with the
Brokers’ negotiation of this Amendment pursuant to a separate agreement between Landlord and
Landlord’s Broker. Landlord and Tenant reaffirm with respect to such Brokers the representation
and warranty and indemnity set forth

 

 

in Section 30.9 of the Original Lease with respect to this Paragraph 4.7.

               4.8. Amendment to Section 8.6.a. Effective as of the Floor 24 Lease Date, the first sentence of Section 8.6.a. of the Original Lease is amended
as follows:

The base Building heat, ventilation and air conditioning system is designed
to provide a maximum air volume (i) delivered to each of Floors 35, 36 and
37 included in the Premises of 12,400 cubic feet per minute, (ii) delivered
to Floor 38 of the Premises of 8,400 cubic feet per minute, and (iii)
delivered to Floor 24 of the Premises of 11,100 cubic feet per minute, and
with the temperature of air at the point of delivery of 55E Fahrenheit.

          5. Floor 24 Delivered in “As-Is” Condition. Landlord and Tenant confirm
that Floor 24 shall be delivered to Tenant in its “as-is” condition on the Floor 24
Lease Date, and Landlord shall have no obligation to make any alterations or improvements to Floor
24 prior to the Floor 24 Lease Date. The parties agree, however, that if at the time the named
Tenant takes occupancy of Floor 24 for the purpose of making initial Alterations therein, then
Landlord and Tenant shall perform the improvements more particularly described in the Addendum
attached hereto and hereby incorporated herein. The provisions of this Paragraph 5 and the
Addendum shall govern the performance of the work described in the Addendum.

          6. Additional Directory Spaces. Effective as of the

 

 

Floor 24 Lease Date, Tenant shall
be entitled to nineteen (19) additional spaces in the Building directory in the Lobby, for a total
of eighty-six (86) such directory spaces.

          7. Additional Parking Spaces. Effective as of the date of this Amendment, Tenant shall be entitled to thirteen additional (13) automobile valet
parking spaces on the lower level of the Complex parking garage, for a total of forty-three (43)
automobile valet parking spaces, on all of the terms and conditions set forth in Section
38.18 of the Original Lease.

          8. Sublease of Floor 24 Notwithstanding the provisions of Section 17.3(iii)
of the Original Lease to the contrary, Landlord agrees that Tenant may sublease the entirety of
Floor 24 to Charles Schwab & Co., Inc. for a term not to exceed three (3) years, commencing on the
Floor 24 Lease Date and ending on December 31, 2002, provided that Tenant and such subletting
comply with all of the other terms and conditions of Sections 17.5 (as of March 31, 2000
and then only if applicable), 17.6, and 17.7 of the Original Lease.

          9. Interpretation of Amendment. This Amendment and the Lease shall be construed as a
whole in order to effectuate the intent of the parties to amend the Lease in the manner specified
in this Amendment. All provisions of the Lease affected by this Amendment shall be deemed amended
regardless of whether so specified in this Amendment. Subject to the

 

 

foregoing, if any provision of the Lease conflicts with any provision of this Amendment, the provision of this Amendment shall
control.

          10. No Further Amendment. Except as amended by this Amendment, the Lease shall continue in full force and effect in accordance with its terms.

 

 

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

	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 
	POST-MONTGOMERY ASSOCIATES,	 	 	 	THOMAS WEISEL PARTNERS GROUP,
	a California general	 	 	 	LLC, a Delaware limited
	partnership	 	 	 	liability company
	 
	 	 	 	 	 	 	 	 
	By:

	 	CUSHMAN & WAKEFIELD
	 	 	 	By:
	 	/s/ Shaugn Stanley
	 

	 	 	 	 	 	 	 	 
	 

	 	OF CALIFORNIA, INC.
	 	 	 	 	 	(signature)
	 

	 	as agent for	 	 	 	 	 	 
	 

	 	THE PRUDENTIAL INSURANCE
	 	 	 	 	 	Shaugn Stanley
	 

	 	 	 	 	 	 	 	 
	 

	 	COMPANY OF AMERICA, a
	 	 	 	 	 	(type or print name)
	 

	 	general partner	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its:
	 	CFO/Partner
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Agnes Duffy Wyman	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Agnes Duffy Wyman	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its:

	 	General Manager	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	UBS BRINSON, INC.,	 	 	 	 	 	 
	 

	 	as agent for NLI	 	 	 	 	 	 
	 

	 	PROPERTIES WEST, INC.,	 	 	 	 	 	 
	 

	 	a general partner	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Joseph B. Dobronyi	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	          (signature)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Joseph B. Dobronyi	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	          (type or print name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its:

	 	Director	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

THIRD AMENDMENT TO OFFICE LEASE

     THIS THIRD AMENDMENT TO OFFICE LEASE (this “Amendment”) is made and entered into as of
this 30th day of June, 1999, by and between POST-MONTGOMERY ASSOCIATES, a California general
partnership (“Landlord”), and THOMAS WEISEL PARTNERS GROUP, LLC, a Delaware limited liability
company, formerly known as Thomas Weisel Partners LLC (“Tenant”).

RECITALS:

          This Amendment is made and entered on the basis of the following facts, understandings and
intentions of the parties:

          A. Landlord and Tenant have previously entered into that certain Office Lease, dated December
7, 1998 (the “Original Lease”), as amended by that certain First Amendment to Office
Lease, dated June 11, 1999 (the “First Amendment”) and that certain Second Amendment to
Office Lease, dated June 11, 1999 (the “Second Amendment”), which Original Lease, First
Amendment, and Second Amendment are collectively referred to as the “Lease”, pursuant
to the terms and conditions of which Landlord has leased to Tenant and Tenant has leased from
Landlord the Premises located in the Complex.

          B. Tenant desires to expand the Premises by adding to the Premises a portion of Floor 22 of
the Expansion Premises

 

 

containing 10,392 square feet of Rentable Area (“Partial Floor 22”).

          C. Landlord and Tenant are willing to add Partial Floor 22 to the Premises, but only if
certain amendments are made to the Lease to implement the addition of Partial Floor 22.

          D. In order to reflect the foregoing matters and effectuate the addition of Partial Floor 22
to the Premises, the parties desire to enter into this Amendment.

          NOW, THEREFORE, IN CONSIDERATION of the foregoing Recitals, and the mutual covenants and
promises of the parties contained in this Amendment, the parties agree to amend the Lease as
follows:

          1. Defined Terms. Except as otherwise specified in this Amendment, all terms defined
in the Lease shall have the same meaning when used in this Amendment.

          2. Agreement to Add Partial Floor 22 to Premises. Prior to the date of this
Amendment, Landlord and Tenant agreed to add Partial Floor 22 to the Premises on the terms and
conditions set forth in this Amendment.

          3. Delivery of Partial Floor 22. Landlord delivered Partial Floor 22 to Tenant, and
Tenant accepted delivery of Partial Floor 22, as of 12:00 a.m. on June 8, 1999 (the “Partial
Floor 22 Lease Date”), in accordance with the provisions of that certain License Agreement
dated June 8, 1999.

 

 

          4. General Terms Upon Which Partial Floor 22 Is Added to the Premises. Except as otherwise provided in this Paragraph 4, and except
as the Lease is otherwise amended by this Amendment, Partial Floor 22 shall be added to and become
a part of the Premises as of the Partial Floor 22 Lease Date, subject to and upon all of the terms
and conditions of the Lease, including Section 2.4 and the provisions of Article 10 of the Original
Lease regarding Alterations, except as otherwise set forth in this Amendment.

               4.1. Term. The Term for Partial Floor 22 shall commence on the ninetieth
(90th) day following the Partial Floor 22 Lease Date (the “Partial Floor 22
Commencement Date”) and shall end on December 31, 2009, which date shall be the Expiration
Date for Partial Floor 22, notwithstanding any provision of Section 2.4(b) of the Original Lease to
the contrary. In addition, the parties hereby amend the second sentence of Section 2.4(b) of the
Original Lease to add the words, “the 24th Floor and” to the two
parenthetical phrases in that sentence.

               4.2. Rentable Area. Effective as of the Partial Floor 22 Lease Date, the provision
of the Basic Lease Information entitled, “Premises”, shall be amended in its entirety
to read as follows:

			
	     Premises:	 	96,494 square feet of Rentable Area located

 

 

on the 22nd, 24th, 35th, 36th, 37th and 38th Floors, as shown on the Floor Plan(s) attached to this Lease as Exhibit A-4

               4.3. Substitution of New Exhibit A-4. Effective as of the Partial Floor 22 Lease
Date, Exhibit A-3, which is attached to the Second Amendment and which supersedes Exhibit A-2 to
the First Amendment and Exhibit A to the Original Lease, shall be superseded in its entirety and
Exhibit A-4, attached to this Amendment, is substituted in lieu thereof.

               4.4. Base Rent. Effective as of the Partial Floor 22 Commencement Date, in addition
to the Base Rent payable by Tenant for the Premises demised by the Lease, Tenant shall pay to
Landlord as Base Rent for Partial Floor 22, at the times and in the manner set forth in the Lease,
including appropriate proration of Base Rent given that the Partial Floor 22 Commencement Date is
not the first day of the month, as follows:

	 	 	 	 	 
	 

	 	September 6, 1999	 	 
	 

	 	through March 16, 2000:
	 	$45,898.00 per month
	 
	 	 	 	 
	 

	 	March 17, 2000	 	 
	 

	 	through March 16, 2001:
	 	$46,764.00 per month
	 
	 	 	 	 
	 

	 	March 17, 2001	 	 
	 

	 	through March 16, 2002:
	 	$47,630.00 per month
	 
	 	 	 	 
	 

	 	March 17, 2002	 	 
	 

	 	through March 16, 2003:
	 	$48,496.00 per month
	 
	 	 	 	 
	 

	 	March 17, 2003	 	 
	 

	 	through March 16, 2004:
	 	$49,362.00 per month
	 
	 	 	 	 
	 

	 	March 17, 2004	 	 
	 

	 	through March 16, 2005:
	 	$50,228.00 per month

 

 

	 	 	 	 	 
	 

	 	March 17, 2005	 	 
	 

	 	through March 16, 2006:
	 	$51,094.00 per month
	 
	 	 	 	 
	 

	 	March 17, 2006	 	 
	 

	 	through December 31, 2009:
	 	$51,960.00 per month

               4.5. Base Year. The Base Year for Partial Floor 22 shall be 2000.

               4.6. Tenant’s Percentage Share. Effective as of the Partial Floor 22
Commencement Date, the provision of the Basic Lease Information entitled, “Tenant’s
Percentage Share”, shall be amended in its entirety to read as follows:

          Tenant’s Percentage Share: 7.33%

          Effective as of the Floor 24 Lease Date,
Tenant’s Percentage Share for Floor 24 shall
be: 2.88%

          Effective as of the Floor 35 Lease Date, Tenant’s Percentage
Share for Floor 35 shall be: 2.90%

          Effective as of the Partial Floor 22 Lease Date, Tenant’s
Percentage Share for Partial Floor 22 shall be: 1.58%

               4.7. Obligations Under Section 2.4(d). Landlord and Tenant agree that,
notwithstanding anything to the contrary contained in Section 2.4(d) of the Original Lease, the
provisions of Section 2.4(d) apply to the balance of Floor 22 of the Expansion Premises, and Tenant
has the absolute obligation to accept delivery of and add to the Premises each portion of the
balance of Floor 22 of the Expansion Premises when and if the

 

 

same becomes available.

               4.8. Payment of Tenant’s Broker Commission Amounts. Landlord shall pay to Landlord’s
Broker, and cause Landlord’s Broker to pay to Tenant’s Broker, a commission in connection with the Brokers’
negotiation of this Amendment pursuant to a separate agreement between Landlord and Landlord’s
Broker. Landlord and Tenant reaffirm with respect to such Brokers the representation and warranty
and indemnity set forth in Section 30.9 of the Original Lease with respect to this Paragraph
4.8.

               4.9. Amendment to Section 8.6.a. Effective as of the Partial Floor 22 Lease Date,
the first sentence of Section 8.6.a. of the Original Lease is amended as follows:

The base Building heat, ventilation and air conditioning system is designed
to provide a maximum air volume (i) delivered to each of Floors 35, 36 and
37 included in the Premises of 12,400 cubic feet per minute, (ii) delivered
to Floor 38 of the Premises of 8,400 cubic feet per minute, and (iii)
delivered to Floors 22 and 24 of the Premises of 11,100 cubic feet per
minute, and with the temperature of air at the point of delivery of
55o
Fahrenheit.

          5. Partial Floor 22 Delivered in “As-Is” Condition. Landlord and Tenant
confirm that Partial Floor 22 shall be delivered to Tenant in its “as-is” condition on
the Partial Floor 22 Lease Date and Landlord shall have no obligation to make any alterations or
improvements to Floor 22 in connection with such

 

 

delivery except as otherwise provided in the
Addendum attached hereto and hereby incorporated herein. The provisions of this Paragraph
5 and the Addendum shall govern the performance of the work described in the Addendum.

          6. Agreement as to Floor 23. The parties acknowledge that Floor 23 is part of the
Expansion Premises as defined in the Original Lease. Tenant agrees that, notwithstanding anything
to the contrary contained in Section 2.4(a) of the Original Lease, at such time as Floor 23 (or
some portion thereof) becomes available for delivery to Tenant, Landlord shall have the right to
withhold up to three thousand five hundred (3,500) square feet of the Rentable Area then available
on Floor 23 as shown on the plan of Floor 23 attached hereto as Exhibit B for use as a
property management office for the Complex (the “Withheld Portion of Floor 23”). If Tenant
elects to exercise its option to expand with respect to the portion of Floor 23 identified in
Landlord’s Expansion Notice, and Landlord subsequently determines that it no longer needs the
Withheld Portion of Floor 23 for use as a property management office, Landlord shall have the right
to require Tenant to accept delivery of the Withheld Portion of Floor 23 pursuant to the terms of
Section 2.4(d) of the Original Lease. Landlord shall, at its sole cost and expense, construct all
demising walls necessary to segregate the Withheld Portion of Floor 23 from the balance of Floor
23. In the event the

 

 

construction of such demising walls necessitates the construction of
corridors within Floor 23 in order to comply with Requirements, Landlord shall also construct all
such corridors at its sole cost and expense. In addition, Landlord, at its sole cost and expense, shall re-route the heating, ventilating and air conditioning system serving
Floor 23, as necessary to accommodate the multi-tenant nature of Floor 23.

          7. Additional Directory Spaces. Effective as of the Partial Floor 22 Lease Date,
Tenant shall be entitled to ten (10) additional spaces in the Building directory in the Lobby, for
a total of ninety-six (96) such directory spaces.

          8. Telecommunications Riser.

               8.1. Riser Letter. Landlord and Tenant entered into that certain letter agreement
dated June 16, 1999 as to Landlord and June 17, 1999 as to Tenant (the “Riser Letter”)
concerning Landlord’s installation of a telecommunications riser between Floor 22 and Floor
38 of the Building. Landlord and Tenant hereby agree that effective as of the date of this
Amendment, the Riser Letter shall be superseded in its entirety by this Amendment.

               8.2. Riser Installation. Landlord shall install one (1) four (4)-inch riser between
the 22nd and 38th Floors of the Building (the “Riser”). The Riser will be located in the telephone
closet on each of the 22nd, 23rd, 24th, 25th, 35th,

 

 

36th, 37th, and 38th Floors of the Building. Landlord will work with Lera Electric and the other tenants in the Building to schedule the work to
meet Tenant’s construction schedule. Landlord will install the Riser pursuant to the terms and
provisions of the Lease at its sole cost and expense, subject to reimbursement by Tenant as
provided in this Amendment.

               8.3. Riser Reimbursement. Tenant shall reimburse Landlord for the cost of the
installation of the Riser within ten (10) days following its receipt of a statement of such costs
from Landlord. Tenant’s failure to timely reimburse Landlord for such costs, or to otherwise
comply with the terms and conditions of this Paragraph 8, shall be an Event of Default.

               8.4. Riser Rent. During the period commencing upon the completion of the installation
of the Riser, and continuing until the expiration or prior termination of the Lease, Tenant shall
pay Landlord the sum of Two Thousand Five Hundred and no/100s Dollars ($2,500.00) per month as Rent
for the use of the Riser (the “Riser Rent”). The first installment of the Riser Rent shall be due
and payable on the completion of the installation of the Riser and subsequent installments of Riser
Rent shall be payable in the manner and at the times as provided in the Lease. In the event the
completion of the installation of the Riser, and/or the expiration or prior termination of the
Lease, does not occur on the first day of the month, the Riser

 

 

Rent for the partial month shall be prorated.

               8.5. Removal of Riser Equipment. Upon the expiration or prior termination of the
Lease, Tenant shall remove all of its cable, telecommunications equipment, and any other
personal property installed by or on behalf of Tenant in the Riser, and deliver the Riser to
Landlord in empty, good condition and repair. Except as otherwise expressly provided in this
Amendment, all of the terms and provisions of the Lease shall apply to the Riser and Tenant’s use
thereof.

          9. Interpretation of Amendment. This Amendment and the Lease shall be construed as a
whole in order to effectuate the intent of the parties to amend the Lease in the manner specified
in this Amendment. All provisions of the Lease affected by this Amendment shall be deemed amended
regardless of whether so specified in this Amendment. Subject to the foregoing, if any provision
of the Lease conflicts with any provision of this Amendment, the provision of this Amendment shall
control.

          10. No Further Amendment. Except as amended by this Amendment, the Lease shall
continue in full force and effect in accordance with its terms.

 

 

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

	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 
	POST-MONTGOMERY ASSOCIATES,	 	 	 	THOMAS WEISEL PARTNERS GROUP,
	a California general	 	 	 	LLC, a Delaware limited
	partnership	 	 	 	liability company
	 
	 	 	 	 	 	 	 	 
	By:

	 	CUSHMAN & WAKEFIELD
	 	 	 	By:
	 	/s/ Shaugn Stanley
	 

	 	 	 	 	 	 	 	 
	 

	 	OF CALIFORNIA, INC.
	 	 	 	 	 	(signature)
	 

	 	as agent for	 	 	 	 	 	 
	 

	 	THE PRUDENTIAL INSURANCE
	 	 	 	 	 	Shaugn Stanley
	 

	 	 	 	 	 	 	 	 
	 

	 	COMPANY OF AMERICA, a
	 	 	 	 	 	(type or print name)
	 

	 	general partner	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its:
	 	CFO/Partner
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Agnes Duffy Wyman	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Agnes Duffy Wyman	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its:

	 	General Manager	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	UBS BRINSON, INC.,	 	 	 	 	 	 
	 

	 	as agent for NLI	 	 	 	 	 	 
	 

	 	PROPERTIES WEST, INC.,	 	 	 	 	 	 
	 

	 	a general partner	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Joseph B. Dobronyi	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	          (signature)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Joseph B. Dobronyi	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	          (type or print name)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its:

	 	Director	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

FOURTH AMENDMENT TO OFFICE LEASE

     THIS FOURTH AMENDMENT TO OFFICE LEASE (this “Amendment”) is made and entered into
as of this 27th day of September, 1999, by and between POST-MONTGOMERY ASSOCIATES, a California
general partnership (“Landlord”), and THOMAS WEISEL PARTNERS GROUP, LLC, a Delaware
limited liability company, formerly known as Thomas Weisel Partners LLC (“Tenant”).

RECITALS:

          This Amendment is made and entered on the basis of the following facts, understandings and
intentions of the parties:

          A. Landlord and Tenant have previously entered into that certain Office Lease, dated December
7, 1998 (the “Original Lease”), as amended by that certain First Amendment to Office
Lease, dated June 11, 1999 (the “First Amendment”), that certain Second Amendment to
Office Lease, dated June 11, 1999 (the “Second Amendment”), and that certain Third
Amendment to Office Lease, dated as of June 30, 1999, which Original Lease, First Amendment, Second
Amendment and Third Amendment are collectively referred to as the “Lease”, pursuant to
the terms and conditions of which Landlord has leased to Tenant and Tenant has leased from Landlord
the Premises located in the Complex.

          B.
Tenant desires to expand the Premises by adding to 

 

 

the Premises a portion of Floor 22 of the Expansion Premises
containing 276 square feet of Rentable Area (the “276 Square Foot Portion of Floor 22”).

          C. Landlord and Tenant are willing to add the 276 Square Foot Portion of Floor 22 to the
Premises, but only if certain amendments are made to the Lease to implement the addition of the 276
Square Foot Portion of Floor 22.

          D. In order to reflect the foregoing matters and effectuate the addition of the 276 Square
Foot Portion of Floor 22 to the Premises, the parties desire to enter into this Amendment.

          NOW, THEREFORE, IN CONSIDERATION of the foregoing Recitals, and the mutual covenants and
promises of the parties contained in this Amendment, the parties agree to amend the Lease as
follows:

          1. Defined Terms. Except as otherwise specified in this Amendment, all terms defined
in the Lease shall have the same meaning when used in this Amendment.

          2. Delivery of the 276 Square Foot Portion of Floor 22. Landlord and Tenant confirm
that Landlord delivered the 276 Square Foot Portion of Floor 22 to Tenant, and Tenant accepted
delivery of the 276 Square Foot Portion of Floor 22, as of 12:00 a.m. on August 1, 1999 (the
“the 276 Square Foot Portion of Floor 22 Lease Date”).

 

 

          3. General Terms Upon Which the 276 Square Foot
Portion of Floor 22 Is Added to the Premises. Except as otherwise provided in this
Paragraph 3, and except as the Lease is otherwise amended by this Amendment, the 276 Square
Foot Portion of Floor 22 shall be deemed added to and to have become a part of the Premises as of
the 276 Square Foot Portion of Floor 22 Lease Date, subject to and upon all of the terms and
conditions of the Lease, including Section 2.4 and the provisions of Article 10 of the Original
Lease regarding Alterations, except as otherwise set forth in this Amendment.

               3.1. Term. The Term for the 276 Square Foot Portion of Floor 22 shall commence on
the Partial Floor 22 Commencement Date, as defined in the Third Amendment, and shall end on
December 31, 2009, which date shall be the Expiration Date for the 276 Square Foot Portion of Floor
22, notwithstanding any provision of Section 2.4(b) of the Original Lease to the contrary.

               3.2. Rentable Area. Effective as of the 276 Square Foot Portion of Floor 22 Lease
Date, the provision of the Basic Lease Information entitled, “Premises”, shall be
amended in its entirety to read as follows:

	 	 	 	 	 
	 

	 	Premises:
	 	96,770 square feet of Rentable Area
located on the 22nd, 24th, 35th, 36th, 37th and
38th
Floors, as shown on the Floor Plan(s) attached to this Lease as Exhibit A-5

 

 

               3.3. Substitution of New Exhibit A-5. Effective as of the 276 Square Foot Portion of
Floor 22 Lease Date, Exhibit
A-4, which is attached to the Third Amendment and which supersedes Exhibit A-3, which is
attached to the Second Amendment, which supersedes Exhibit A-2 to the First Amendment, which
supersedes Exhibit A to the Original Lease, shall be superseded in its entirety and Exhibit
A-5, attached to this Amendment, is substituted in lieu thereof.

               3.4. Base Rent. Effective as of the Partial Floor 22 Commencement Date, in addition
to the Base Rent payable by Tenant for the Premises demised by the Lease, Tenant shall pay to
Landlord as Base Rent for the 276 Square Foot Portion of Floor 22, at the times and in the manner
set forth in the Lease, including appropriate proration of Base Rent given that the Partial Floor
22 Commencement Date is not the first day of the month, as follows:

	 	 	 	 	 	 	 
	 

	 	September 6, 1999
	 	 	 	 
	 

	 	through March 16, 2000:
	 	 	 	$1,219.00 per month
	 
	 	 	 	 	 	 
	 

	 	March 17, 2000	 	 	 	 
	 

	 	through March 16, 2001:
	 	 	 	$1,242.00 per month
	 
	 	 	 	 	 	 
	 

	 	March 17, 2001	 	 	 	 
	 

	 	through March 16, 2002:
	 	 	 	$1,265.00 per month
	 
	 	 	 	 	 	 
	 

	 	March 17, 2002	 	 	 	 
	 

	 	through March 16, 2003:
	 	 	 	$1,288.00 per month
	 
	 	 	 	 	 	 
	 

	 	March 17, 2003	 	 	 	 
	 

	 	through March 16, 2004:
	 	 	 	$1,311.00 per month
	 
	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 

	 	March 17, 2004	 	 	 	 
	 

	 	through March 16, 2005:
	 	 	 	$1,334.00 per month
	 
	 	 	 	 	 	 
	 

	 	March 17, 2005	 	 	 	 
	 

	 	through March 16, 2006:
	 	 	 	$1,357.00 per month
	 
	 	 	 	 	 	 
	 

	 	March 17, 2006	 	 	 	 
	 

	 	through December 31, 2009:
	 	 	 	$1,380.00 per month

               4.5. Base Year. The Base Year for the 276 Square Foot Portion of Floor 22 shall be
2000.

               4.6.
Tenant’s Percentage Share. Effective as of the 276 Square Foot Portion of
Floor 22 Commencement Date, the provision of the Basic Lease Information entitled,
“Tenant’s Percentage Share”, shall be amended in its entirety to read as follows:

	 	 	Tenant’s Percentage Share:      7.33%

	 	 	Effective as of the Floor 24 Lease Date,
Tenant’s Percentage Share for Floor 24 shall
be:      2.88%
	 
	 	 	Effective as of the Floor 35 Lease Date,
Tenant’s Percentage Share for Floor 35 shall
be:       2.90%
	 
	 	 	Effective as of the Partial Floor 22 Lease
Date, Tenant’s Percentage Share for Partial
Floor 22, as defined in the Third Amendment,
shall be:       1.58%
	 
	 	 	Effective as of the 276 Square Foot Portion of Floor 22 Lease Date,
Tenant’s Percentage Share for the 276 Square Foot Portion of
Floor 22 shall be:       .042%

               3.7. Obligations Under Section 2.4(d). Landlord
and Tenant agree that, notwithstanding anything to the contrary

 

 

contained in Section 2.4(d) of
the Original Lease, the provisions of Section 2.4(d) apply to the balance of Floor 22 of the
Expansion Premises, and Tenant has the absolute obligation to accept delivery of and add to the
Premises each portion of the balance of Floor 22 of the Expansion Premises when and if the same
becomes available.

               3.8. Payment of Tenant’s Broker Commission Amounts. Landlord shall pay to Landlord’s
Broker, and cause Landlord’s Broker to pay to Tenant’s Broker, a commission in connection with the
Brokers’ negotiation of this Amendment pursuant to a separate agreement between Landlord and
Landlord’s Broker. Landlord and Tenant reaffirm with respect to such Brokers the representation
and warranty and indemnity set forth in Section 30.9 of the Original Lease with respect to this
Paragraph 3.8.

          4. The 276 Square Foot Portion of Floor 22 Delivered in “As-Is” Condition.
Landlord and Tenant confirm that the 276 Square Foot Portion of Floor 22 was delivered to Tenant
in its “as-is” condition on the 276 Square Foot Portion of Floor 22 Lease Date, and
that Landlord shall have no obligation to make any alterations or improvements to the 276 Square
Foot Portion of Floor 22 in connection with such delivery. All work to the 276 Square Foot Portion
of Floor 22 shall be done by Tenant pursuant to the terms and provisions of the Third Amendment.

          5. Extension of Telecommunications Riser.

               5.1 Extension Riser Letter. Landlord and Tenant entered into that certain letter
agreement dated August 27, 1999,
(the “Extension Riser Letter”) concerning Landlord’s installation

 

 

of the
“Extension Riser” defined in Paragraph 5.2 below. Landlord and Tenant hereby
agree that effective as of the date of this Amendment, the Extension Riser Letter shall be
superseded in its entirety by this Amendment.

               5.2. Riser Installation. In addition to the Riser provided for in the Third
Amendment, Landlord shall install one (1) four (4)-inch riser between the Service Level of the
Building and the 22nd Floor of the Building (the “Extension Riser”). The Extension Riser will be
located in the telephone closets on the 21st through the Service Level Floors of the
Building. Landlord will work with Lera Electric and the other tenants in the Building to schedule
the work to meet Tenant’s construction schedule. Landlord will install the Extension Riser
pursuant to the terms and provisions of the Lease at its sole cost and expense, subject to
reimbursement by Tenant as provided in this Amendment.

               5.3. Riser Reimbursement. Tenant shall reimburse Landlord for the cost of the
installation of the Extension Riser within ten (10) days following its receipt of a statement of
such costs from Landlord. Tenant’s failure to timely reimburse Landlord for such costs, or to
otherwise comply with the terms and conditions of this Paragraph 5, shall be an Event of
Default.

               5.4. Extension Riser Rent. During the period
commencing upon the completion of the installation of the

 

 

Extension Riser, and continuing
until the expiration or prior termination of the Lease, Tenant shall pay Landlord the sum of Two
Thousand Five Hundred and no/100s Dollars ($2,500.00) per month as Rent for the use of the
Extension Riser (the “Extension Riser Rent”). The first installment of the Extension Riser Rent
shall be due and payable on the completion of the installation of the Extension Riser and
subsequent installments of Extension Riser Rent shall be payable in the manner and at the times as
provided in the Lease. In the event the completion of the installation of the Extension Riser,
and/or the expiration or prior termination of the Lease, does not occur on the first day of the
month, the Extension Riser Rent for the partial month shall be prorated.

               5.5. Removal of Extension Riser Equipment. Upon the expiration or prior termination
of the Lease, Tenant shall remove all of its cable, telecommunications equipment, and any other
personal property installed by or on behalf of Tenant in the Extension Riser, and deliver the
Extension Riser to Landlord in empty, good condition and repair. Except as otherwise expressly
provided in this Amendment, all of the terms and provisions of the Lease shall apply to the
Extension Riser and Tenant’s use thereof.

          6. Interpretation of Amendment. This Amendment and
the Lease shall be construed as a whole in order to effectuate

 

 

the intent of the parties to
amend the Lease in the manner specified in this Amendment. All provisions of the Lease affected by
this Amendment shall be deemed amended regardless of whether so specified in this Amendment.
Subject to the foregoing, if any provision of the Lease conflicts with any provision of this
Amendment, the provision of this Amendment shall control.

          7. No Further Amendment. Except as amended by this Amendment, the Lease shall
continue in full force and effect in accordance with its terms.

 

 

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

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	POST-MONTGOMERY ASSOCIATES,	 	 	 	THOMAS WEISEL PARTNERS GROUP,	 	 
	a California general	 	 	 	LLC, a Delaware limited	 	 
	partnership	 	 	 	liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	CUSHMAN & WAKEFIELD
	 	 	 	By:
	 	/s/ Shaugn Stanley	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	OF CALIFORNIA, INC.
	 	 	 	 	 	(signature)	 	 
	 

	 	as agent for	 	 	 	 	 	 	 	 
	 

	 	THE PRUDENTIAL INSURANCE	 	 	 	 	 	 	 	 
	 

	 	COMPANY OF AMERICA, a	 	 	 	 	 	 	 	 
	 

	 	general partner	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Agnes Duffy Wyman	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Agnes Duffy Wyman	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Its:

	 	General Manager	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	UBS BRINSON, INC.,	 	 	 	 	 	 	 	 
	 

	 	as agent for NLI	 	 	 	 	 	 	 	 
	 

	 	PROPERTIES WEST, INC.,	 	 	 	 	 	 	 	 
	 

	 	a general partner	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Joseph B. Dobronyi	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Joseph B. Dobronyi	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Its:

	 	Director	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

 

 

FIFTH AMENDMENT TO OFFICE LEASE

     THIS FIFTH AMENDMENT TO OFFICE LEASE (this “Amendment”) is made and entered into
as of this 19th day of November, 1999, by and between POST-MONTGOMERY ASSOCIATES, a California
general partnership (“Landlord”), and THOMAS WEISEL PARTNERS GROUP, LLC, a Delaware
limited liability company, formerly known as Thomas Weisel Partners LLC (“Tenant”).

RECITALS:

          This Amendment is made and entered on the basis of the following facts, understandings and
intentions of the parties:

          A. Landlord and Tenant have previously entered into that certain Office Lease, dated December
7, 1998 (the “Original Lease”), as amended by that certain First Amendment to Office
Lease, dated June 11, 1999 (the “First Amendment”), that certain Second Amendment to
Office Lease, dated June 11, 1999 (the “Second Amendment”), that certain Third
Amendment to Office Lease, dated June 30, 1999, that certain Fourth Amendment to Office Lease,
dated September 27, 1999 (“Fourth Amendment”), that certain letter agreement dated July
9, 1999 (the “July 9, 1999, Letter Agreement”), and that certain letter agreement dated
October 16, 1999 (the “October 16, 1999, Letter Agreement”), which Original Lease,
First Amendment, Second Amendment, Third Amendment, Fourth Amendment, July 9, 1999, Letter
Agreement, and

 

 

October 16, 1999, Letter Agreement are collectively referred to as the “Lease”,
pursuant to the terms and conditions of which Landlord has leased to Tenant and Tenant has leased
from Landlord the Premises located in the Complex.

          B. Tenant desires to expand the Premises by adding to the Premises the Generator Area pursuant
to Section 2.3 of the Lease.

          C. Landlord and Tenant are willing to add the Generator Area to the Premises, but only if
certain amendments are made to the Lease to implement the addition of the Generator Area.

          D. In order to reflect the foregoing matters and effectuate the addition of the Generator Area
to the Premises, the parties desire to enter into this Amendment.

          NOW, THEREFORE, IN CONSIDERATION of the foregoing Recitals, and the mutual covenants and
promises of the parties contained in this Amendment, the parties agree to amend the Lease as
follows:

          1. Defined Terms. Except as otherwise specified in this Amendment, all terms defined
in the Lease shall have the same meaning when used in this Amendment.

          2. Approval of Generator Area and Generator.

 

 

               2.1. Governmental Permits and Approvals. Tenant represents to Landlord that, to the
best of its knowledge, Tenant
has obtained or will obtain by December 15, 1999, all permits and approvals from all
governmental agencies having jurisdiction under applicable Requirements for the installation,
operation, testing and maintenance of the Generator in the Complex (the “Generator
Permits”), and that the Generator Permits accurately reflect the location of the Generator
Area and the design and specifications for the Generator. Tenant represents to Landlord that
Tenant has delivered or will deliver by December 15, 1999, true and complete copies of the
Generator Permits to Landlord.

               2.2. Landlord’s Approval. Landlord confirms that it approved the location of
the Generator Area established in the applications for the Generator Permits, which location is
shown on Exhibit A-6, attached hereto and incorporated herein, and the design and
specifications for the Generator established pursuant to the applications for the Generator
Permits, as well as all appurtenant installations to the Generator (such as fuel lines, fuel tank,
exhaust fans, ducts and vents), on November 19, 1999 (the “Generator Area Lease Date”).
Landlord’s approval is expressly subject to the rights of Schwab as described in Section
2.3(c) of the Lease. Tenant acknowledges that the Generator is designed to serve only Floors 23
though 38 of the Building which are or become part of the Premises. In the event Tenant desires

 

 

to modify the Generator or Generator Area to serve additional portions of the Premises, or for any
other purpose, all such
modifications shall be subject to Landlord’s approval as provided in the Lease. The
design and specifications for the Generator (including all fuel lines, fuel tanks, exhaust fans,
cabling within risers, and other equipment serving the Generator) are described in Exhibit
B attached hereto and incorporated herein. All of the equipment described in Exhibit B
or installed by or on behalf of Tenant in the Generator Area is deemed part of the Generator for
all purposes of Section 2.3 of the Original Lease, even if not described in Exhibit B, and
any portion of the Complex wherein any portion of the Generator is located shall be deemed part of
the Generator Area, even if not included in the Generator Permits or shown on Exhibit A-6.
Notwithstanding the foregoing, the risers referred to in Section 2.3 of the Lease are not part of
the Generator Area, although the equipment installed in those risers is part of the Generator.

          3. Delivery of the Generator Area. Landlord and Tenant confirm that Landlord
delivered the Generator Area to Tenant, and Tenant accepted delivery of the Generator Area, in its
“as is” condition as of 12:00 a.m. on the Generator Area Lease Date.

          4. Terms Upon Which the Generator Area Is Added to the Premises. The Generator Area
shall be deemed added to and to

 

 

have become a part of the Premises as of the Generator Area Lease
Date, subject to and upon all of the terms and conditions of the
Lease, including without limitation Section 2.3(c) and the provisions of Article 10 of the
Lease regarding Alterations, except as otherwise set forth in this Amendment.

               4.1. Term. The Term for the Generator Area shall commence on the Generator Area
Lease Date and shall end on March 16, 2007, subject to the provisions of Sections 2.3(a) and 3.2 of
the Lease.

               4.2. Rentable Area. Effective as of the Generator Area Lease Date, the provision of
the Basic Lease Information entitled, “Premises” shall be amended in its entirety to
read as follows:

	 	 	 	 	 
	 

	 	Premises:
	 	97,705 square feet of Rentable Area
located on the Service
Level, 22nd,
24th, 35th, 36th, 37th and 38th Floors, as shown on the Floor Plan(s) attached to this Lease as Exhibit A-6

               4.3. Substitution of New Exhibit A-6. Effective as of the Generator Area Lease Date,
Exhibit A-5, which is attached to the Fourth Amendment, shall be superseded in its entirety and
Exhibit A-6, attached to this Amendment, is substituted in lieu thereof.

               4.4. Base Rent. Effective as of the Generator Area Lease Date, in addition to the
Base Rent payable by Tenant for the Premises demised by the Lease, Tenant shall pay to

 

 

Landlord as
Base Rent for the Generator Area, at the times and in the manner set forth in the Lease, including
appropriate
proration of Base Rent if the Generator Area Lease Date is not the first day of the month, the
sum of $1,402.50 per month. The initial Base Rent for the Generator Area provided for in this
Paragraph 4.4 shall be increased by the percentage of increase, if any, in the Consumer
Price Index, All Items, for the San Francisco-Oakland-San Jose Area, All Urban Consumers, published
by the Bureau of Labor Statistics of the United States Department of
Labor (base year 1982-84 = 100)(“Index”). If the Index changes so that the base year differs from that specified
above, then the Index shall be converted to the 1982-84 base in accordance with the conversion
factor published by the Bureau of Labor Statistics. If the Index is discontinued or revised, such
other government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued or
revised. The Index published nearest to the Generator Area Lease Date shall be the
“Beginning Index”. The Index published most recently before the applicable
“Adjustment Date” (as defined below) shall be the “Adjustment Index”. The
“Adjustment Dates” shall be the yearly anniversary date of the Generator Area Lease
Date. On each Adjustment Date, the Base Rent for the Generator Area shall be adjusted by
multiplying the initial Base Rent under

 

 

this Paragraph 4.4 by a fraction, the numerator of
which fraction is the applicable Adjustment Index and the denominator of which
fraction is the Beginning Index. In no event shall Base Rent be reduced pursuant to the
foregoing calculation.

               4.5. Emergency Power System. Tenant shall monitor the Generator and related alarms.
Tenant shall not disconnect any emergency exit, stair, vestibule, Floor light fixtures, lighting
control panels, automation panels or life safety panels serving the Building and reconnect them to
the Generator.

          5. Schwab’s Rights in the Generator Area. As provided in Section 2.3(c) of the
Lease, Tenant’s rights in the Generator Area are expressly made subject to Schwab’s
rights to install a generator in the Generator Area. In the event Landlord approves Schwab’s
use of the Generator Area for the installation of a generator and the Generator Area becomes part
of Schwab’s premises, neither the Generator Area nor the Base Rent payable by Tenant for the
Generator Area shall be reduced unless the Generator Area is required to be reduced by
Requirements, and so long as the Generator Area is part of the Premises, in no event shall
Tenant’s indemnity obligations contained in the Lease be reduced as a result of
Schwab’s use of the Generator Area or the inclusion of the Generator Area in Schwab’s
premises.

          6. Elevator Alterations.

 

 

          6.1. VIP Service System. Pursuant to the Lease, Tenant requested that Landlord
install, at Tenant’s sole cost and expense, a VIP service system for Car No. 15 of the
highrise
elevator bank in the Building. Landlord has informed Tenant that the cost of installing the
VIP service system is $53,249. Tenant shall pay to Landlord Landlord’s actual cost of
installing the VIP service system within thirty (30) days of Landlord’s written demand,
accompanied by invoices.

               6.2. Card Reader System. In connection with the installation of the VIP service
system, Tenant requested that Landlord install a card reader system in Car No. 15. Landlord has
informed Tenant that the cost of installing the card reader system is $15,875.14, and that the cost
of the cards is $10.00 each, with replacement cards at a cost of $15.00 each. Pursuant to the July
9, 1999, Letter Agreement, Tenant shall pay to Landlord fifty percent (50%) of Landlord’s
actual cost of installing the card reader system, and the cost of each card requested by Tenant
within thirty (30) days of Landlord’s written demand, accompanied by invoices. Tenant
further agrees that it shall pay to Landlord, within thirty (30) days of written demand, fifty
percent (50%) of all costs incurred by Landlord in maintaining the card reader system during the
Term.

               6.3. Elevator Keypads. In connection with the installation of the VIP service
system, Tenant requested that

 

 

Landlord install keypads on certain Floors of the Premises. Landlord
has informed Tenant that the cost of installing the keypads is $1,679 per keypad. Tenant shall
notify Landlord of
the Floors on which Tenant wishes Landlord to install the keypads, and Tenant shall pay
Landlord, within thirty (30) days of written demand, the actual cost to install each keypad
installed by Landlord at Tenant’s request. Tenant further agrees that it shall pay to
Landlord, within thirty (30) days of written demand, all costs incurred by Landlord in maintaining
and programming the VIP service system during the Term.

          7. Second Telecommunications Riser.

               7.1. Second Riser Agreement. Landlord and Tenant have agreed that Landlord shall
install a telecommunications riser between Floor 32 and Floor 37 of the Building on the terms and
conditions set forth in this Amendment.

               7.2. Second Riser Installation. Landlord shall install one (1) four (4)-inch riser
between the 32nd and 37th Floors of the Building (the “Second Riser”). The Second Riser will be
located in the telephone closet on each of the 32nd, 33rd, 34th, 35th, 36th, and 37th Floors of the
Building. Landlord will work with Lera Electric and the other tenants in the Building to schedule
the work to meet Tenant’s construction schedule. Landlord will install the Second Riser pursuant
to the

 

 

terms and provisions of the Lease at its sole cost and expense, subject to reimbursement by
Tenant as provided in this Amendment.

               7.3. Second Riser Reimbursement. Tenant shall reimburse Landlord for the actual cost
of the installation of the
Second Riser within thirty (30) days following its receipt of a statement of such costs from
Landlord, accompanied by invoices. Tenant’s failure to timely reimburse Landlord for such costs,
or to otherwise comply with the terms and conditions of this Paragraph 7, shall be an Event
of Default.

               7.4. Second Riser Rent. During the period commencing upon the completion of the
installation of the Second Riser, and continuing until the expiration or prior termination of the
Lease, Tenant shall pay Landlord the sum of One Thousand and no/100s Dollars ($1,000.00) per month
as Rent for the use of the Second Riser (the “Second Riser Rent”). The first installment of the
Second Riser Rent shall be due and payable on the completion of the installation of the Second
Riser and subsequent installments of Riser Rent shall be payable in the manner and at the times as
provided in the Lease. In the event the completion of the installation of the Second Riser, and/or
the expiration or prior termination of the Lease, does not occur on the first day of the month, the
Second Riser Rent for the partial month shall be prorated.

 

 

               7.5. Removal of Second Riser Equipment. Upon the expiration or prior termination of
the Lease, Tenant shall remove all of its cable, telecommunications equipment, and any other
personal property installed by or on behalf of Tenant in the Riser, and deliver the Second Riser to
Landlord in empty, good
condition and repair. Except as otherwise expressly provided in this Amendment, all of the
terms and provisions of the Lease shall apply to the Second Riser and Tenant’s use thereof.

          8. Interpretation of Amendment. This Amendment and the Lease shall be construed as a
whole in order to effectuate the intent of the parties to amend the Lease in the manner specified
in this Amendment. All provisions of the Lease affected by this Amendment shall be deemed amended
regardless of whether so specified in this Amendment. Subject to the foregoing, if any provision
of the Lease conflicts with any provision of this Amendment, the provision of this Amendment shall
control.

          9. No Further Amendment. Except as amended by this Amendment, the Lease shall
continue in full force and effect in accordance with its terms.

 

 

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

	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	POST-MONTGOMERY ASSOCIATES,	 	 	 	THOMAS WEISEL PARTNERS GROUP,	 	 
	a California general	 	 	 	LLC, a Delaware limited	 	 
	partnership	 	 	 	liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	CUSHMAN & WAKEFIELD
	 	 	 	By:
	 	/s/ David Baylor	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	OF CALIFORNIA, INC.
	 	 	 	 	 	(signature)	 	 
	 

	 	as agent for	 	 	 	 	 	 	 	 
	 

	 	THE PRUDENTIAL INSURANCE
	 	 	 	 	 	David Baylor	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	COMPANY OF AMERICA, a
	 	 	 	 	 	(type or print name)	 	 
	 

	 	general partner	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Ellen M. Kovach
	 	 	 	 	 	Its: General Counsel	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Ellen M. Kovach	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Its:

	 	General Manager	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	UBS BRINSON, INC.,	 	 	 	 	 	 	 	 
	 

	 	as agent for NLI	 	 	 	 	 	 	 	 
	 

	 	PROPERTIES WEST, INC.,	 	 	 	 	 	 	 	 
	 

	 	a general partner	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Joseph B. Dobronyi	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Joseph B. Dobronyi	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Its:

	 	Director	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

 

 

SIXTH AMENDMENT TO OFFICE LEASE

     THIS SIXTH AMENDMENT TO OFFICE LEASE (this “Amendment”) is made and entered into as of this
9th day of June, 2000, by and between POST-MONTGOMERY ASSOCIATES, a California general partnership
(“Landlord”), and THOMAS WEISEL PARTNERS GROUP, LLC, a Delaware limited liability company, formerly
known as Thomas Weisel Partners LLC (“Tenant”).

RECITALS:

          This Amendment is made and entered on the basis of the following facts, understandings and
intentions of the parties:

          A. Landlord and Tenant have previously entered into that certain Office Lease, dated December
7, 1998 (the “Original Lease”), as amended by that certain First Amendment to Office Lease, dated
June 11, 1999 (the “First Amendment”), that certain Second Amendment to Office Lease, dated June
11, 1999 (the “Second Amendment”), that certain Third Amendment to Office Lease, dated June 30,
1999, that certain Fourth Amendment to Office Lease, dated September 27, 1999 (“Fourth Amendment”),
and that certain Fifth Amendment to Office Lease, dated as of November 19, 1999 (“Fifth
Amendment”), which Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth
Amendment, and Fifth Amendment are collectively referred to as the “Lease”, pursuant to the terms
and conditions of which Landlord has leased to Tenant and Tenant has leased from Landlord the
Premises located in the Complex.

 

 

          B. Tenant desires to expand the Premises by adding to the Premises a portion of Floor 23 of
the Expansion Premises containing 15,423 square feet of Rentable Area (“Partial Floor 23”).

          C. Landlord and Tenant are willing to add Partial Floor 23 to the Premises, but only if
certain amendments are made to the Lease to implement the addition of Partial Floor 23.

          D. In order to reflect the foregoing matters and effectuate the addition of Partial Floor 23
to the Premises, the parties desire to enter into this Amendment.

          NOW, THEREFORE, IN CONSIDERATION of the foregoing Recitals, and the mutual covenants and
promises of the parties contained in this Amendment, the parties agree to amend the Lease as
follows:

          1. Defined Terms. Except as otherwise specified in this Amendment, all terms defined
in the Lease shall have the same meaning when used in this Amendment.

          2. Delivery of Partial Floor 23; Withheld Portion of Floor 23.

               2.1. Delivery of Partial Floor 23. Landlord shall deliver Partial Floor 23 to Tenant,
and Tenant shall accept delivery of Partial Floor 23, as of 12:00 a.m. on December 18, 2000 (the
“Partial Floor 23 Lease Date”); provided, however, that if Landlord for any reason whatsoever
cannot deliver Partial Floor 23 to Tenant by the Partial Floor 23 Lease Date, this Amendment shall
not be void or voidable and Landlord shall not be in default or liable to Tenant for any loss
resulting therefrom. No delay in delivery of Partial Floor 23 for any reason

 

 

whatsoever shall operate to extend the Expiration Date or Term (defined below) for Partial
Floor 23.

               2.2. Withheld Portion of Floor 23. Pursuant to Section 6 of the Third Amendment,
Landlord hereby exercises its right to withhold approximately three thousand five hundred (3,500)
square feet of Rentable Area on Floor 23, which constitutes the balance of Floor 23 and is defined
in the Third Amendment as the “Withheld Portion of Floor 23”. Landlord will diligently explore
locating its property management office in another portion of the Building prior to the Partial
Floor 23 Lease Date. If Landlord finds another location for such office more than thirty (30) days
prior to the Partial Floor 23 Lease Date, Landlord shall provide Tenant with written notice thereof
at least thirty (30) days prior to the Partial Floor 23 Lease Date, and then Landlord shall deliver
the Withheld Portion of Floor 23 to Tenant on the Partial Floor 23 Lease Date on all of the terms
and conditions contained in this Amendment. In the event Landlord delivers the Withheld Portion of
Floor 23 on the Partial Floor 23 Lease Date, all references in this Amendment to “Partial Floor 23”
shall be deemed to include the Withheld Portion of Floor 23, unless otherwise expressly stated to
the contrary. If Landlord is not successful in finding another location for its property
management office prior to the Partial Floor 23 Lease Date, and Landlord subsequently determines it
no longer needs the Withheld Portion of Floor 23 as a property management office, then Landlord,
upon giving Tenant at least thirty (30) days’ prior written notice, shall have the right to require
Tenant to accept delivery of the Withheld Portion of Floor 23 subsequent to the Partial Floor 23
Lease Date pursuant to all of the terms and conditions contained in this Amendment, including
(without limitation) the commencement of the Term

 

 

(which shall commence on the ninetieth (90th) day following the date Landlord
delivers the Withheld Portion of Floor 23 to Tenant), the Expiration Date, Base Rent, and Base
Year, notwithstanding the terms and provisions of Section 2.4(d) of the Lease to the contrary, and
upon such delivery, all references in this Amendment to “Partial Floor 23” shall be deemed to
include the Withheld Portion of Floor 23, unless otherwise expressly stated to the contrary.

          3. General Terms Upon Which Partial Floor 23 Is Added to the Premises. Except as
otherwise provided in this Paragraph 3 and except as the Lease is otherwise amended by this
Amendment, Partial Floor 23 shall be added to and become a part of the Premises as of the Partial
Floor 23 Lease Date, subject to and upon all of the terms and conditions of the Lease, including
without limitation Section 2.4 and the provisions of Article 10 of the Lease regarding Alterations,
except as otherwise set forth in this Amendment.

               3.1. Term. The Term for Partial Floor 23 shall commence on the ninetieth
(90th) day following the Partial Floor 23 Lease Date (the “Partial Floor 23 Commencement
Date”), and shall end on December 31, 2009, which date shall be the Expiration Date for Partial
Floor 23, notwithstanding any provision of Section 2.4(b) of the Lease to the contrary.

               3.2. Rentable Area. Effective as of the Partial Floor 23 Lease Date, the provision
of the Basic Lease Information entitled, “Premises” shall be amended in its entirety to read as
follows:

	 	 	 	 	 
	 

	 	Premises:
	 	113,128 square feet (or 116,628 square feet if the Withheld Portion of
Floor 23 is also delivered to Tenant) of Rentable Area located on the Service
Level, 22nd, 23rd, 24th, 35th,
36th, 37th and 38th Floors, as shown on the
Floor Plan(s) attached to this Lease as Exhibit A-7.

 

 

               3.3. Substitution of New Exhibit A-7. Effective as of the Partial Floor 23 Lease
Date, Exhibit A-6, which is attached to the Fifth Amendment, shall be superseded in its entirety
and Exhibit A-7, attached to this Amendment, is substituted in lieu thereof.

               3.4. Base Rent. Effective as of Partial Floor 23 Commencement Date, in addition to
the Base Rent payable by Tenant for the Premises demised by the Lease, Tenant shall pay to Landlord
as Base Rent for Partial Floor 23, at the times and in the manner set forth in the Lease, including
appropriate proration of Base Rent if the Partial Floor 23 Commencement Date is not the first day
of the month, as follows:

	 	 	 
	March 18, 2001, through December 31, 2004:

	 	$115,672.50 per month (or
	 

	 	$141,922.50 per month if the
	 

	 	Withheld Portion of Floor 23 is also
	 

	 	delivered to Tenant)
	 
	 	 
	January 1, 2005, through December 31, 2009:

	 	$128,525.00 per month (or
	 

	 	$157,691.67 per month if the
	 

	 	Withheld Portion of Floor 23 is also
	 

	 	delivered to Tenant)

               3.5. Base Year. The Base Year for the Partial Floor 23 (and for the Withheld Portion
of Floor 23 if the Withheld Portion of Floor 23 is also delivered to Tenant) shall be 2001.

               3.6. Tenant’s Percentage Share. Effective as of the Partial Floor 23 Commencement
Date, the provision of the Basic Lease Information entitled, “Tenant’s Percentage Share”, shall be
amended in its entirety to read as follows:

Tenant’s Percentage Share: 7.33%

Effective as of the Floor 24 Lease Date, Tenant’s Percentage Share
for Floor 24 shall be: 2.88%

 

 

Effective as of the Floor 35 Lease Date, Tenant’s Percentage Share
for Floor 35 shall be: 2.90%

Effective as of the Partial Floor 22 Lease Date, Tenant’s Percentage
Share for Partial Floor 22, as defined in the Third Amendment, shall
be: 1.58%

Effective as of the 276 Square Foot Portion of Floor 22 Lease Date,
Tenant’s Percentage Share for the 276 Square Foot Portion of Floor
22 shall be: .042%

Effective as of the Partial Floor 23 Lease Date, Tenant’s Percentage
Share for Partial Floor 23 shall be: 2.35% (or 2.88% if the Withheld
Portion of Floor 23 is also delivered to Tenant)

               3.7. Payment of Tenant’s Broker Commission Amounts. Landlord shall pay to Landlord’s
Broker, and cause Landlord’s Broker to pay to Montgomery Advisors, whom the parties agree shall be
deemed to be Tenant’s Broker for purposes of this Amendment, a commission in connection with the
negotiation of this Amendment pursuant to a separate agreement between Landlord and Landlord’s
Broker. Landlord and Tenant reaffirm with respect to such Brokers the representation and warranty
and indemnity set forth in Section 30.9 of the Lease with respect to this Paragraph 3.7.

               3.8. Amendment to Section 8.6.a. Effective as of the Partial Floor 23 Lease Date,
the first sentence of Section 8.6.a. of the Lease is amended as follows:

The base Building heat, ventilation and air conditioning system is designed
to provide a maximum air volume (i) delivered to each of Floors 35, 36 and
37 included in the Premises of 12,400 cubic feet per minute, (ii) delivered
to Floor 38 of the Premises of 8,400 cubic feet per minute, and (iii)
delivered to Floors 22, 23 and 24 of the Premises of 11,100 cubic feet
per minute, and with the temperature of air at the point of delivery of
55° Fahrenheit.

 

 

          4. Partial Floor 23 to be Delivered in “As-Is” Condition. Landlord and Tenant confirm
that Partial Floor 23 shall be delivered to Tenant in its “as-is” condition on the Partial Floor 23
Lease Date, and that Landlord shall have no obligation to make any alterations or improvements to
Partial Floor 23 in connection with such delivery. All work to Partial Floor 23 is an Alteration
and shall be performed by Tenant, at its sole cost and expense, pursuant to the terms and
provisions of Article 10 of the Lease and the Pacific Telesis Center Construction & Remodeling
Guide. In the event Landlord locates its property management office in the Withheld Portion of
Floor 23 Landlord shall, at its sole cost and expense, construct the improvements contemplated by
Section 6 of the Third Amendment prior to the Partial Floor 23 Commencement Date.

          5. Additional Directory Spaces and Parking Spaces. Effective as of the Partial Floor
23 Lease Date, Tenant shall be entitled to ten (10) additional spaces in the Building directory in
the Lobby and two (2) additional automobile valet parking spaces.

          6. Construction of Staircases. Tenant shall have the right to construct, at its sole
cost and expense, two (2) interior staircases within the Premises, one of which shall connect
Partial Floor 23 with Floor 24 and the other of which shall connect Floor 35 with Floor 36. Tenant
shall have the right to commence the construction of the staircase to connect Floor 35 with Floor
36 at any time following the date of this Amendment. Tenant shall have the right to commence the
construction of the staircase to connect Partial Floor 23 with Floor 24 at any time following the
Partial Floor 23 Lease Date. All such construction is an Alteration and shall be
performed in accordance with Article 10 of the Lease and the Pacific Telesis Center
Construction

 

 

& Remodeling Guide. Pursuant to Section 10.3 of the Lease, Landlord hereby notifies
Tenant that Landlord reserves the right to require Tenant to remove the staircases described in
this Paragraph 6 prior to the expiration of the Term of the Lease or its prior termination,
which in the case of the staircase that connects Partial Floor 23 with Floor 24 shall be the date
on which the Lease shall first expire or terminate with respect to either of those Floors, and with
respect to Floors 35 with 36 shall be the date on which the Lease shall first expire or terminate
with respect to either of those Floors.

          7. Interpretation of Amendment. This Amendment and the Lease shall be construed as a
whole in order to effectuate the intent of the parties to amend the Lease in the manner specified
in this Amendment. All provisions of the Lease affected by this Amendment shall be deemed amended
regardless of whether so specified in this Amendment. Subject to the foregoing, if any provision
of the Lease conflicts with any provision of this Amendment, the provision of this Amendment shall
control.

          8. No Further Amendment. Except as amended by this Amendment, the Lease shall
continue in full force and effect in accordance with its terms.

 

 

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

	 	 	 	 	 	 	 
	LANDLORD:	 	TENANT:
	 
	 	 	 	 	 	 
	POST-MONTGOMERY ASSOCIATES,	 	THOMAS WEISEL PARTNERS GROUP,
	a California general	 	LLC, a Delaware limited liability company
	partnership	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Shaugn Stanley
	 	 	 	 	 	 	 
	By:

	 	CUSHMAN & WAKEFIELD
	 	 	 	(signature)
	 

	 	OF CALIFORNIA, INC.	 	 	 	 
	 

	 	as agent for
	 	 	 	Shaugn Stanley
	 	 	 	 	 	 	 
	 

	 	THE PRUDENTIAL INSURANCE
	 	 	 	(type or print name)
	 

	 	COMPANY OF AMERICA, a	 	 	 	 
	 

	 	general partner	 	 	 	 
	 

	 	 	 	Its:
	 	CFO/Partner
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Ellen M. Kovach	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Ellen M. Kovach	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 
	 
	 	 	 	 	 	 
	Its:

	 	General Manager	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	UBS BRINSON, INC.,	 	 	 	 
	 

	 	as agent for NLI PROPERTIES	 	 	 	 
	 

	 	WEST, INC.,	 	 	 	 
	 

	 	a general partner	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Joseph B. Dobronyi	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Joseph B. Dobronyi	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 
	 
	 	 	 	 	 	 
	Its:

	 	Director	 	 	 	 
	 	 	 	 	 	 	 

 

 

SEVENTH AMENDMENT TO OFFICE LEASE

     THIS SEVENTH AMENDMENT TO OFFICE LEASE (this “Amendment” or “Seventh Amendment”) is made and
entered into as of this 31st day of July, 2000, by and between POST-MONTGOMERY ASSOCIATES, a
California general partnership (“Landlord”), and THOMAS WEISEL PARTNERS GROUP, LLC, a Delaware
limited liability company, formerly known as Thomas Weisel Partners LLC (“Tenant”).

RECITALS:

          This Amendment is made and entered on the basis of the following facts, understandings and
intentions of the parties:

          A. Landlord and Tenant have previously entered into that certain Office Lease, dated December
7, 1998 (the “Original Lease”), as amended by that certain First Amendment to Office Lease, dated
June 11, 1999 (the “First Amendment”), that certain Second Amendment to Office Lease, dated June
11, 1999 (the “Second Amendment”), that certain Third Amendment to Office Lease, dated June 30,
1999, that certain Fourth Amendment to Office Lease, dated September 27, 1999 (“Fourth Amendment”),
that certain letter agreement dated July 9, 1999 (the “July 9, 1999, Letter Agreement”),that
certain letter agreement dated October 16, 1999,(the “October 16, 1999, Letter Agreement”),that
certain Fifth Amendment to Office Lease, dated as of November 19, 1999 (“Fifth Amendment”), and
that certain Sixth Amendment to Office Lease, dated as of June 9, 2000 (“Sixth Amendment”), which
Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth Amendment, July 9, 1999,
Letter Agreement, October 16, 1999, Letter Agreement, Fifth Amendment and Sixth Amendment are
collectively referred to as the “Lease”, pursuant to the terms and conditions of which Landlord has
leased to Tenant and Tenant has leased from Landlord the Premises located in the Complex.

 

 

          B. In Paragraph 4.7 of the Third Amendment, Landlord and Tenant have agreed that,
notwithstanding anything to the contrary contained in Section 2.4(d) of the Original Lease, Tenant
has the absolute obligation to accept delivery of and add to the Premises each portion of the
balance of Floor 22 of the Expansion Premises as the same becomes available.

          C. Tenant desires to expand the Premises by adding to the Premises a portion of Floor 22 of
the Expansion Premises containing 7,883 square feet of Rentable Area and commonly known as Suite
2250 (“Suite 2250”), and to make certain changes relating to elevator service and communications
risers.

          D. Landlord and Tenant are willing to add Suite 2250 to the Premises, but only if Tenant pays
a termination fee with respect to the existing tenant lease for Suite 2250 and certain amendments
are made to the Lease to implement the addition of Suite 2250.

          E. In order to reflect the foregoing matters and effectuate the addition of Suite 2250 to the
Premises, the parties desire to enter into this Amendment.

          NOW, THEREFORE, IN CONSIDERATION of the foregoing Recitals, and the mutual covenants and
promises of the parties contained in this Amendment, the parties agree to amend the Lease as
follows:

          1. Defined Terms. Except as otherwise specified in this Amendment, all terms defined
in the Lease shall have the same meaning when used in this Amendment.

          2. Delivery of Suite 2250; Termination Fee.

               2.1. Delivery of Suite 2250. Landlord shall deliver Suite 2250 to Tenant, and Tenant
shall accept delivery of Suite 2250, as of 12:00 a.m. on August 1, 2000(the “Balance of Floor 22
Lease Date”); provided, however, that if Landlord for any reason whatsoever cannot deliver Suite
2250 to Tenant by the Suite 2250 Lease Date, this Amendment shall not be void or voidable and
Landlord shall not be in default or liable to Tenant for any loss resulting therefrom. No delay in
delivery of Suite 2250 for any reason whatsoever shall operate

 

 

to extend the Suite 2250 Commencement Date or the Expiration Date for Suite 2250 (as such terms are
defined below).

               2.2. Termination Fee. Concurrent with the execution and delivery of this Amendment by
Tenant, Tenant agrees to deliver to Landlord a termination fee in the amount of Seventy-Five
Thousand Dollars ($75,000)(the “Termination Fee”), which Landlord will then pay to the existing
tenant of Suite 2250, Finova Capital Corporation, a Delaware corporation (“Finova”), as
consideration for Finova to terminate its existing lease for Suite 2250 and surrender such space to
Landlord in order to make such space available for lease by Tenant.

          3. General Terms Upon Which Partial Floor 22 Is Added to the Premises. Except as
otherwise provided in this Paragraph 3 and except as the Lease is otherwise amended by this
Amendment, Suite 2250 shall be added to and become a part of the Premises as of the Suite 2250
Lease Date, subject to and upon all of the terms and conditions of the Lease, including without
limitation Section 2.4 and the provisions of Article 10 of the Lease regarding Alterations, except
as otherwise set forth in this Amendment.

               3.1. Term. The Term for Suite 2250 shall commence on October 30, 2000 (the “Balance
of Floor 22 Commencement Date”), and shall end on December 31, 2009, which date shall be the
Expiration Date for Suite 2250, notwithstanding any provision of Section 2.4(b) of the Lease to the
contrary.

               3.2. Rentable Area. Effective as of the Suite 2250 Lease Date, the provision of the
Basic Lease Information entitled, “Premises” shall be amended in its entirety to read as follows:

	 	 	 	 	 
	 

	 	Premises:
	 	105,588 square feet (which shall increase to 121,011 square feet on the
Partial Floor 23 Lease Date (as defined in the Sixth Amendment), or to 124,511
square feet if the Withheld Portion of Floor 23 (as defined in the Sixth
Amendment) is also delivered to Tenant) of Rentable Area located on the Service
Level, 22nd, 23rd,

 

 

	 	 	 	 	 
	 

	 	 	 	24th, 35th, 36th, 37th
and 38th Floors, as shown on the Floor Plan(s) attached
to this Lease as Exhibit A-8.

               3.3. Substitution of New Exhibit A-8. Effective as of the Suite 2250 Lease Date,
Exhibit A-7, which is attached to the Sixth Amendment, shall be superseded in its entirety and
Exhibit A-8, attached to this Amendment, is substituted in place thereof.

               3.4. Base Rent. Effective as of the Suite 2250 Commencement Date, in addition to the
Base Rent payable by Tenant for the Premises demised by the Lease, Tenant shall pay to Landlord as
Base Rent for Suite 2250, at the times and in the manner set forth in the Lease, including
appropriate proration of Base Rent if the Suite 2250 Commencement Date is not the first day of the
month, as follows:

	 	 	 	 	 
	August 1, 2000, through December 31, 2000:
	 	$56,979.64 per month
	January 1, 2001, through March 31, 2001:
	 	$	0	 
	April 1, 2001, through
September 30, 2003:
	 	$56,979.64 per month
	October 1, 2003, through
December 31, 2004:
	 	$59,122.50 per month
	January 1, 2005, through
December 31, 2009:
	 	$65,691.57 per month

               3.5. Base Year. The Base Year for Suite 2250 shall be 2000.

               3.6. Tenant’s Percentage Share. Effective as of the Suite 2250 Commencement Date,
the provision of the Basic Lease Information entitled, “Tenant’s Percentage Share”, shall be
amended in its entirety to read as follows:

Tenant’s Percentage Share: 7.33%

Effective as of the Floor 24 Lease

Date, Tenant’s Percentage Share for

Floor 24 shall be: 2.88%

Effective as of the Floor 35 Lease Date, Tenant’s Percentage Share
for Floor 35 shall be: 2.90%

 

 

Effective as of the Partial Floor 22 Lease Date, Tenant’s Percentage
Share for Partial Floor 22, as defined in the Third Amendment, shall
be: 1.58%

Effective as of the 276 Square Foot Portion of Floor 22 Lease Date,
Tenant’s Percentage Share for the 276 Square Foot Portion of Floor
22, as defined in the Fourth Amendment, shall be: .042%

Effective as of the Suite 2250 Lease Date, Tenant’s Percentage Share
for Suite 2250, as defined in the Seventh Amendment, shall be: 1.20%

Effective as of the Partial Floor 23 Lease Date, Tenant’s Percentage
Share for Partial Floor 23, as defined in the Sixth Amendment, shall
be: 2.35% (or 2.88% if the Withheld Portion of Floor 23, as defined
in the Sixth Amendment, is also delivered to Tenant)

               3.7. Payment of Tenant’s Broker Commission Amounts. Landlord shall pay to Landlord’s
Broker, and cause Landlord’s Broker to pay to Montgomery Advisors, whom the parties agree shall be
deemed to be Tenant’s Broker for purposes of this Amendment, a commission in connection with the
negotiation of this Amendment pursuant to a separate agreement between Landlord and Landlord’s
Broker. Landlord and Tenant reaffirm with respect to such Brokers the representation and warranty
and indemnity set forth in Section 30.9 of the Lease with respect to this Paragraph 3.7.

          4. Suite 2250 to be Delivered in “As-Is” Condition. Landlord and Tenant confirm that
Suite 2250 shall be delivered to Tenant in its “as-is” condition on the Suite 2250 Lease Date, and
that Landlord shall have no obligation to make any alterations or improvements to Suite 2250 in
connection with such delivery. All work to Suite 2250 shall be done by Tenant, at its sole cost
and expense, pursuant to the terms and provisions of the Lease.

 

 

          5. Additional Directory Spaces. Effective as of the Suite 2250 Lease Date, Tenant
shall be entitled to five (5) additional spaces in the Building directory in the Lobby, for a total
of fifty-eight (58) such directory spaces.

          6. Construction of Staircases. Tenant shall have the right to construct, at its sole
cost and expense, one (1) interior staircase within the Premises, which shall connect Floor 22 with
Floor 23. Tenant shall have the right to commence the construction of the staircase to connect
Floor 22 with Floor 23 at any time following the Partial Floor 23 Lease Date and delivery of
possession of Suite 2250 to Tenant. All such construction is an Alteration and shall be performed
in accordance with the Lease, including but not limited to the Pacific Telesis Center Construction
& Remodeling Guide. Pursuant to Section 10.3 of the Lease, Landlord hereby notifies Tenant that
Landlord will require Tenant to remove the staircase described in this Paragraph 6 prior to
the expiration of the Term of the Lease or its prior termination, which shall be the date on which
the Lease shall first expire or terminate with respect to either of Floors 22 and 23.

          7. Elevator Alterations. Tenant requested that Landlord add Floor 24 of the Building
to the highrise elevator bank in the Building, at Tenant’s sole cost and expense. Landlord has
agreed to so add Floor 24 to the highrise elevator bank provided that Tenant also bear the cost and
expense of purchasing and installing a Schindler Elevator Miconic Control System, and replace the
door operating system, in the highrise elevator bank. Landlord has informed Tenant that the cost
of installing the elevator doors and landings on Floor 24 of the Building and providing the control
system and door operating system upgrades will be at least $801,649.00, plus additional costs for
painting, electrical work, accelerated scheduling as required by Tenant, and other costs related to
such work. Tenant shall pay to Landlord Landlord’s actual cost of installing the elevator doors
and landings on Floor 24 and the control system and door operating system upgrades within thirty
(30) days of Landlord’s written demand,

 

 

accompanied by invoices. Landlord reserves the right to determine at the end of the Term for Floor
24 (notwithstanding the provisions of Section 10.3 of the Lease to the contrary) whether Landlord
desires to have the highrise elevator service removed from Floor 24 of the Building (including
changing the controls and panels on such elevators as necessary to remove Floor 24 therefrom) at
the end of the Term for Floor 24, which removal and changes to the elevators if so desired by
Landlord shall done at the Tenant’s sole cost and expense. Tenant agrees that the terms of this
Paragraph 7 are and shall remain confidential, and Tenant agrees not to disclose any of the
terms hereof to any person or entity not a party to this Amendment.

          8. Telecommunications Riser.

               8.1. Riser Letter. Landlord and Tenant entered into that certain letter agreement
dated May 18, 2000, as to Landlord and May 19, 2000, as to Tenant (the “Riser Letter”) concerning
Landlord’s installation of telecommunications risers between Floor 22 and Floor 24 of the Building.
Landlord and Tenant hereby agree that effective as of the date of this Amendment, the Riser Letter
shall be superseded in its entirety by this Amendment.

               8.2. Riser Installation. Landlord shall install four (4) four (4)-inch risers between
the 22nd and 24th Floors of the Building (collectively, the “Seventh Amendment Riser”). The
Seventh Amendment Riser will be located in the telephone closet on each of the 22nd, 23rd and 24th
Floors of the Building. Landlord will work with Lera Electric and the other tenants in the
Building to schedule the work to meet Tenant’s construction schedule. Landlord will install the
Seventh Amendment Riser pursuant to the terms and provisions of the Lease at its sole cost and
expense, subject to reimbursement by Tenant as provided in this Amendment.

               8.3. Seventh Amendment Riser Reimbursement. Tenant shall reimburse Landlord for the
cost of the installation of the Seventh Amendment Riser within ten (10) days following its receipt
of a statement of such costs from Landlord. Tenant’s failure to

 

 

timely reimburse Landlord for such costs, or to otherwise comply with the terms and conditions of
this Paragraph 8, shall be an Event of Default.

               8.4. Riser Rent. During the period commencing upon the completion of the installation
of the Seventh Amendment Riser, and continuing until the expiration or prior termination of the
Lease, Tenant shall pay Landlord the additional sum of One Thousand Seven Hundred and no/100s
Dollars ($1,700.00) per month as Rent for the use of the Seventh Amendment Riser (the “Seventh
Amendment Riser Rent”). The first installment of the Seventh Amendment Riser Rent shall be due and
payable on the completion of the installation of the Seventh Amendment Riser and subsequent
installments of Seventh Amendment Riser Rent shall be payable in the manner and at the times as
provided for Rent to be paid under the Lease. In the event the completion of the installation of
the Seventh Amendment Riser, and/or the expiration or prior termination of the Lease, does not
occur on the first day of the month, the Seventh Amendment Riser Rent for the partial month shall
be prorated.

               8.5. Removal of Riser Equipment. Upon the expiration or prior termination of the
Lease, Tenant shall remove all of its cable, telecommunications equipment, and any other personal
property installed by or on behalf of Tenant in the Seventh Amendment Riser, and deliver the
Seventh Amendment Riser to Landlord in empty, good condition and repair. Except as otherwise
expressly provided in this Amendment, all of the terms and provisions of the Lease shall apply to
the Seventh Amendment Riser and Tenant’s use thereof.

          9. Remaining Balance of Floor 22. Landlord and Tenant agree that, notwithstanding
anything to the contrary contained in Section 2.4(d) of the Original Lease, the provisions of
Section 2.4(d) apply to the balance of Floor 22 of the Expansion Premises, and Tenant has the
absolute obligation to accept delivery of and add to the Premises the balance of Floor 22 of the
Expansion Premises when and if the same becomes available. In such event, Landlord, upon giving
Tenant at least thirty (30) days’ prior written notice, shall have the right to

 

 

require Tenant to accept delivery of the balance of Floor 22 on all of the terms and conditions
contained in this Amendment (except the Base Year), including (without limitation) that the Term
for such space shall commence on the ninetieth (90th) day following the date Landlord
delivers the balance of Floor 22 to Tenant, the Expiration Date, and the rate per square foot used
to calculate the Base Rent, notwithstanding the terms and provisions of Section 2.4(d) of the Lease
to the contrary.

          10. Interpretation of Amendment. This Amendment and the Lease shall be construed as a
whole in order to effectuate the intent of the parties to amend the Lease in the manner specified
in this Amendment. All provisions of the Lease affected by this Amendment shall be deemed amended
regardless of whether so specified in this Amendment. Subject to the foregoing, if any provision
of the Lease conflicts with any provision of this Amendment, the provision of this Amendment shall
control.

          11. Execution and Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed an original, and all of which
counterparts shall constitute one and the same Amendment.

          12. No Further Amendment. Except as amended by this Amendment, the Lease shall
continue in full force and effect in accordance with its terms.

 

 

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

	 	 	 	 	 	 	 
	LANDLORD:	 	TENANT:
	 
	 	 	 	 	 	 
	POST-MONTGOMERY ASSOCIATES,	 	THOMAS WEISEL PARTNERS GROUP,
	a California general	 	LLC, a Delaware limited liability company
	partnership	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Shaugn Stanley
	 	 	 	 	 	 	 
	By:

	 	CUSHMAN & WAKEFIELD
	 	 	 	(signature)
	 

	 	OF CALIFORNIA, INC.	 	 	 	 
	 

	 	as agent for
	 	 	 	Shaugn Stanley
	 	 	 	 	 	 	 
	 

	 	THE PRUDENTIAL INSURANCE
	 	 	 	(type or print name)
	 

	 	COMPANY OF AMERICA, a	 	 	 	 
	 

	 	general partner	 	 	 	 
	 

	 	 	 	Its:
	 	CFO/Partner
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Ellen M. Kovach	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Ellen M. Kovach	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 
	 
	 	 	 	 	 	 
	Its:

	 	General Manager	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	UBS BRINSON, INC., as agent	 	 	 	 
	 

	 	for NLI PROPERTIES WEST, INC., a	 	 	 	 
	 

	 	general partner	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ James P. Bouderau Jr.	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	James P. Bouderau Jr.	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 
	 
	 	 	 	 	 	 
	Its:

	 	Director	 	 	 	 
	 	 	 	 	 	 	 

 

 

EIGHTH AMENDMENT TO OFFICE LEASE

     THIS EIGHTH AMENDMENT TO OFFICE LEASE (this “Amendment” or “Seventh Amendment”) is made and
entered into as of this 1st day of October, 2000, by and between POST-MONTGOMERY ASSOCIATES, a
California general partnership (“Landlord”), and THOMAS WEISEL PARTNERS GROUP, LLC, a Delaware
limited liability company, formerly known as Thomas Weisel Partners LLC (“Tenant”).

RECITALS:

          This Amendment is made and entered on the basis of the following facts, understandings and
intentions of the parties:

          A. Landlord and Tenant have previously entered into that certain Office Lease, dated December
7, 1998 (the “Original Lease”), as amended by that certain First Amendment to Office Lease, dated
June 11, 1999 (the “First Amendment”), that certain Second Amendment to Office Lease, dated June
11, 1999 (the “Second Amendment”), that certain Third Amendment to Office Lease, dated June 30,
1999, that certain Fourth Amendment to Office Lease, dated September 27, 1999 (“Fourth Amendment”),
that certain letter agreement dated July 9, 1999 (the “July 9, 1999, Letter Agreement”),that
certain letter agreement dated October 16, 1999,(the “October 16, 1999, Letter Agreement”),that
certain Fifth Amendment to Office Lease, dated as of November 19, 1999 (“Fifth Amendment”), that
certain Sixth Amendment to Office Lease, dated as of June 9, 2000 (“Sixth Amendment”), and that
certain Seventh Amendment to Office Lease, dated as of July 31, 2000 (“Seventh Amendment”), which
Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth Amendment, July 9, 1999,
Letter Agreement, October 16, 1999, Letter Agreement, Fifth Amendment, Sixth Amendment and Seventh
Amendment are collectively referred to as the “Lease”, pursuant to the terms and conditions of
which Landlord has leased to Tenant and Tenant has leased from Landlord the Premises located in the
Complex.

 

 

          B. In Paragraph 4.7 of the Third Amendment, Landlord and Tenant have agreed that,
notwithstanding anything to the contrary contained in Section 2.4(d) of the Original Lease, Tenant
has the absolute obligation to accept delivery of and add to the Premises each portion of the
balance of Floor 22 of the Expansion Premises as the same becomes available.

          C. Tenant desires to expand the Premises by adding to the Premises the balance of Floor 22 of
the Expansion Premises containing 372 square feet of Rentable Area and commonly known as Suite 2210
(the “Balance of Floor 22”).

          D. Landlord and Tenant are willing to add the Balance of Floor 22 to the Premises on the terms
and conditions hereinafter set forth.

          E. In order to reflect the foregoing matters and effectuate the addition of the Balance of
Floor 22 to the Premises, the parties desire to enter into this Amendment.

          NOW, THEREFORE, IN CONSIDERATION of the foregoing Recitals, and the mutual covenants and
promises of the parties contained in this Amendment, the parties agree to amend the Lease as
follows:

          1. Defined Terms. Except as otherwise specified in this Amendment, all terms defined
in the Lease shall have the same meaning when used in this Amendment.

          2. Delivery of the Balance of Floor 22. Landlord shall deliver the Balance of Floor
22 to Tenant, and Tenant shall accept delivery of the Balance of Floor 22, as of 12:00 a.m. on
October 1, 2000(the “Balance of Floor 22 Lease Date”); provided, however, that if Landlord for any
reason whatsoever cannot deliver the Balance of Floor 22 to Tenant by the Balance of Floor 22 Lease
Date, this Amendment shall not be void or voidable and Landlord shall not be in default or liable
to Tenant for any loss resulting therefrom. No delay in delivery of the Balance of Floor 22 for
any reason whatsoever shall operate to extend the Balance of Floor 22 Commencement Date or the
Expiration Date for the Balance of Floor 22 (as such terms are defined below).

          3. General Terms Upon Which the Balance of Floor 22 Is Added to the Premises. Except
as otherwise provided in this Paragraph 3 and except as the Lease is otherwise

 

 

amended by this Amendment, the Balance of Floor 22 shall be added to and become a part of the
Premises as of the Balance of Floor 22 Lease Date, subject to and upon all of the terms and
conditions of the Lease, including without limitation Section 2.4 and the provisions of Article 10
of the Lease regarding Alterations, except as otherwise set forth in this Amendment.

               3.1. Term. The Term for the Balance of Floor 22 shall commence on October 1, 2000
(the “Balance of Floor 22 Commencement Date”), and shall end on December 31, 2009, which date shall
be the Expiration Date for the Balance of Floor 22 notwithstanding any provision of Section 2.4(b)
of the Lease to the contrary.

               3.2. Rentable Area. Effective as of the Balance of Floor 22 Lease Date, the
provision of the Basic Lease Information entitled, “Premises” shall be amended in its entirety to
read as follows:

	 	 	 	 	 
	 

	 	Premises:
	 	105,960 square feet (which shall increase to 121,383 square feet on the
Partial Floor 23 Lease Date (as defined in the Sixth Amendment), or to 124,883
square feet if the Withheld Portion of Floor 23 (as defined in the Sixth
Amendment) is also delivered to Tenant) of Rentable Area located on the Service
Level, 22nd, 23rd, 24th, 35th,
36th, 37th and 38th Floors, as shown on the
Floor Plan(s) attached to this Lease as Exhibit A-9.

               3.3. Substitution of New Exhibit A-9. Effective as of the Balance of Floor 22 Lease
Date, Exhibit A-8, which is attached to the Seventh Amendment, shall be superseded in its entirety
and Exhibit A-9, attached to this Amendment, is substituted in place thereof.

               3.4. Base Rent. Effective as of the Balance of Floor 22 Commencement Date, in
addition to the Base Rent payable by Tenant for the Premises demised by the Lease, Tenant shall pay
to Landlord as Base Rent for the Balance of Floor 22, at the times and in the manner set forth in
the Lease, including appropriate proration of Base Rent if the Balance of Floor 22 Commencement
Date is not the first day of the month, as follows:

 

 

	 	 	 
	October 1, 2000, through December 31, 2004:

	 	$2,790.00 per month ($33,480.00 annually)
	January 1, 2005, through December 31, 2009:

	 	$3,100.00 per month ($37,200.00 annually)

               3.5. Base Year. The Base Year for the Balance of Floor 22 shall be 2001.

               3.6. Tenant’s Percentage Share. Effective as of the Balance of Floor 22 Commencement
Date, the provision of the Basic Lease Information entitled, “Tenant’s Percentage Share”, shall be
amended in its entirety to read as follows:

Tenant’s Percentage Share: 7.33%

Effective as of the Floor 24 Lease Date, Tenant’s Percentage Share
for Floor 24 shall be: 2.88%

Effective as of the Floor 35 Lease Date, Tenant’s Percentage Share
for Floor 35 shall be: 2.90%

Effective as of the Partial Floor 22 Lease Date, Tenant’s Percentage
Share for Partial Floor 22, as defined in the Third Amendment, shall
be: 1.58%

Effective as of the 276 Square Foot Portion of Floor 22 Lease Date,
Tenant’s Percentage Share for the 276 Square Foot Portion of Floor
22, as defined in the Fourth Amendment, shall be: .042%

Effective as of the Suite 2250 Lease Date, Tenant’s Percentage Share
for Suite 2250, as defined in the Seventh Amendment, shall be: 1.20%

Effective as of the Balance of Floor 22 Lease Date, Tenant’s
Percentage Share for the Balance of Floor 22, as defined in the
Eighth Amendment, shall be: 0.06%

Effective as of the Partial Floor 23 Lease Date, Tenant’s Percentage
Share for Partial Floor 23, as defined in the Sixth Amendment, shall
be: 2.35% (or 2.88% if the Withheld Portion of Floor 23, as defined
in the Sixth Amendment, is also delivered to Tenant)

               3.7. Payment of Tenant’s Broker Commission Amounts. Landlord shall pay to Landlord’s
Broker, and cause Landlord’s Broker to pay to Montgomery Advisors, whom

 

 

the parties agree shall be deemed to be Tenant’s Broker for purposes of this Amendment, a
commission in connection with the negotiation of this Amendment pursuant to a separate agreement
between Landlord and Landlord’s Broker. Landlord and Tenant reaffirm with respect to such Brokers
the representation and warranty and indemnity set forth in Section 30.9 of the Lease with respect
to this Paragraph 3.7.

          4. The Balance of Floor 22 to be Delivered in “As-Is” Condition. Landlord and Tenant
confirm that the Balance of Floor 22 shall be delivered to Tenant in its “as-is” condition on the
Balance of Floor 22 Lease Date, and that Landlord shall have no obligation to make any alterations
or improvements to the Balance of Floor 22 in connection with such delivery. All work to the
Balance of Floor 22 shall be done by Tenant, at its sole cost and expense, pursuant to the terms
and provisions of the Lease.

          5. Additional Directory Spaces. Effective as of the Balance of Floor 22 Lease Date,
Tenant shall be entitled to one (1) additional space in the Building directory in the Lobby, for a
total of fifty-nine(59) such directory spaces.

          6. Interpretation of Amendment. This Amendment and the Lease shall be construed as a
whole in order to effectuate the intent of the parties to amend the Lease in the manner specified
in this Amendment. All provisions of the Lease affected by this Amendment shall be deemed amended
regardless of whether so specified in this Amendment. Subject to the foregoing, if any provision
of the Lease conflicts with any provision of this Amendment, the provision of this Amendment shall
control.

          7. Execution and Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed an original, and all of which
counterparts shall constitute one and the same Amendment.

          8. No Further Amendment. Except as amended by this Amendment, the Lease shall
continue in full force and effect in accordance with its terms.

 

 

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

	 	 	 	 	 	 	 
	LANDLORD:	 	TENANT:
	 
	 	 	 	 	 	 
	POST-MONTGOMERY ASSOCIATES,	 	THOMAS WEISEL PARTNERS GROUP,
	a California general	 	LLC, a Delaware limited liability company
	partnership	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Shaugn Stanley
	 	 	 	 	 	 	 
	By:

	 	CUSHMAN & WAKEFIELD
	 	 	 	(signature)
	 

	 	OF CALIFORNIA, INC.	 	 	 	 
	 

	 	as agent for
	 	 	 	Shaugn Stanley
	 	 	 	 	 	 	 
	 

	 	THE PRUDENTIAL INSURANCE
	 	 	 	(type or print name)
	 

	 	COMPANY OF AMERICA, a	 	 	 	 
	 

	 	general partner	 	 	 	 
	 

	 	 	 	Its:
	 	CFO
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Ellen M. Kovach	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Ellen M. Kovach	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 
	 
	 	 	 	 	 	 
	Its:

	 	General Manager	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	UBS ASSET MANAGEMENT (NEW	 	 	 	 
	 

	 	YORK), INC., as  agent	 	 	 	 
	 

	 	for NLI PROPERTIES WEST INC., a	 	 	 	 
	 

	 	general partner	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Scott M. Dalrymple	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(signature)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Scott M. Dalrymple	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(type or print name)	 	 	 	 
	 
	 	 	 	 	 	 
	Its:

	 	Director	 	 	 	 
	 	 	 	 	 	 	 

 

 

NINTH AMENDMENT TO OFFICE LEASE

     THIS NINTH AMENDMENT TO OFFICE LEASE (this “Amendment” or “Ninth Amendment”) is made and
entered into as of this 18th day of December, 2000, by and between POST-MONTGOMERY
ASSOCIATES, a California general partnership (“Landlord”), and THOMAS WEISEL PARTNERS GROUP, LLC, a
Delaware limited liability company, formerly known as Thomas Weisel Partners LLC (“Tenant”).

RECITALS:

     This Amendment is made and entered on the basis of the following facts, understandings and
intentions of the parties:

     A. Landlord and Tenant have previously entered into that certain Office Lease, dated December
7, 1998 (the “Original lease”), as amended by that certain First Amendment to Office Lease, dated
June 11, 1999 (the “First Amendment”), that certain Second Amendment to Office Lease, dated June
11, 1999 (the “Second Amendment”), that certain Third Amendment to Office Lease, dated June 30,
1999, that certain Fourth Amendment to Office Lease, dated September 27, 2999 (“Fourth Amendment”),
that certain letter agreement dated July 9, 1999 (the “July 9, 1999, Letter Agreement”), that
certain letter agreement dated October 16, 1999 (the “October 16, 1999, Letter Agreement”), that
certain Fifth Amendment to Office Lease, dated as of November 19, 1999 (“Fifth Amendment”), that
certain Sixth Amendment to Office Lease, dated as of June 9, 2000 (“Sixth Amendment”), that certain
Seventh Amendment to Office Lease, dated as of July 31, 2000 (“Seventh Amendment”), and that
certain Eight Amendment to Office

 

 

Lease, dated as of October 1, 2000 (“Eighth Amendment”), which Original Lease, First Amendment,
Second Amendment, Third Amendment, Fourth Amendment, July 9, 1999, Letter Agreement, October 16,
1999, Letter Agreement, Fifth Amendment, Sixth Amendment, Seventh Amendment and Eighth Amendment
are collectively referred to as the “Lease”, pursuant to the terms and conditions of which Landlord
has leased to Tenant and Tenant has leased from Landlord the Premises located in the Complex.

     B. In Paragraph 6 of the Third Amendment, Landlord and Tenant have agreed that Tenant has the
absolute obligation to accept delivery of and add to the Premises the balance of Floor 23 of the
Expansion Premises defined therein as the “Withheld Portion of Floor 23” which is comprised of
three thousand five hundred (3,500) square feet of Rentable Area, pursuant to the terms of Section
2.4(d) of the Original Lease, if Landlord no longer needs the Withheld Portion of Floor 23 for use
as a property management office.

     C. Tenant desires to make certain changes relating to communications risers, and Landlord and
Tenant are willing to add the Withheld Portion of Floor 23 to the Premises, on the terms and
conditions hereinafter set forth.

     D. In order to reflect the foregoing matters and effectuate the addition of the Withheld
Portion of Floor 23 to the Premises, the parties desire to enter into this Amendment.

     NOW, THEREFORE, IN CONSIDERATION of the foregoing Recitals, and the mutual covenants and
promises of the parties contained in this Amendment, the parties agree to amend the Lease as
follows:

 

 

     1. Defined Terms. Except as otherwise specified in this Amendment, all terms defined
in the Lease shall have the same meaning when used in this Amendment.

     2. Delivery of the Withheld Portion of Floor 23. Landlord shall deliver the Withheld
Portion of Floor 23 to Tenant, and Tenant shall accept delivery of the Withheld Portion of Floor
23, as of 12:00 a.m. on December 18, 2000 (the “Withheld Portion of Floor 23 Lease Date”);
provided, however, that if Landlord for any reason whatsoever cannot deliver the Withheld Portion
of Floor 23 to Tenant by the Withheld Portion of Floor 23 Lease Date, this Amendment shall not be
void or voidable and Landlord shall not be in default or liable to Tenant for any loss resulting
therefrom. No delay in delivery of the Withheld Portion of Floor 23 for any reason whatsoever
shall operate to extend the Withheld Portion of Floor 23 Commencement Date or the Expiration Date
for the Withheld Portion of Floor 23 (as such terms are defined below); provided the Withheld
Portion of Floor 23 Lease Date shall be extended to the actual date of delivery.

     3. General Terms Upon Which the Withheld Portion of Floor 23 Is Added to the Premises.
Except as otherwise provided in this Paragraph 3 and except as the Lease is otherwise
amended by this Amendment, the Withheld Portion of Floor 23 shall be added to and become a part of
the Premises as of the Withheld Portion of Floor 23 Lease Date, subject to and upon all of the
terms and conditions of the Lease, including without limitation Section 2.4 and the provisions of
Article 10 of the Lease regarding Alterations, except as otherwise set forth in this Amendment.

 

 

          3.1. Term. The Term for the Withheld Portion of Floor 23 shall commence on the
ninetieth (90th) day following the Withheld Portion of Floor 23 Lease Date (the
“Withheld Portion of Floor 23 Commencement Date”), and shall end on December 31, 2009, which date
shall be the Expiration Date for the Withheld Portion of Floor 23, notwithstanding any provision of
Section 2.4(b) of the Lease to the contrary.

          3.2. Rentable Area. Effective as of the Withheld Portion of Floor 23 Lease Date, the
provision of the Basic Lease Information entitled, “Premises” shall be amended in its entirety to
read as follows:

	 	 	 	 	 
	 

	 	Premises:
	 	124,511 square feet of Rentable
Area located on the Service Level,
22nd, 23rd,
24th, 35th,
36th, 37th and
38th Floors, as shown on the
Floor Plan(s) attached to this Lease as
Exhibit A-10.

          3.3. Substitution of New Exhibit A-10. Effective as of the Withheld Portion of Floor
23 Lease Date, Exhibit A-9, which is attached to the Eighth Amendment, shall be superseded in its
entirety and Exhibit A-10, attached to this Amendment, is substituted in place thereof.

          3.4. Base Rent. Effective as of the Withheld Portion of Floor 23 Commencement Date,
in addition to the Base Rent payable by Tenant for the Premises demised by the Lease, Tenant shall
pay to Landlord as Base Rent for the Withheld Portion of Floor 23, at the times and in the manner
set forth in the Lease,

 

 

including appropriate proration of Base Rent if the Withheld Portion of Floor 23 Commencement Date
is not the first day of the month, as follows:

	 	 	 
	Withheld Portion of Floor
23 Commencement Date
through December 31, 2004:

	 	$26,250.00 per month
	 
	 	 
	January 1, 2005, through
December 31, 2009:

	 	$26,166.67 per month

          3.5. Base Year. The Base Year for the Withheld Portion of Floor 23 shall be 2001.

          3.6. Tenant’s Percentage Share. Effective as of the Withheld Portion of Floor 23
Commencement Date, the provision of the Basic Lease Information entitled, “Tenant’s Percentage
Share”, shall be amended in its entirety to read as follows:

Tenant’s Percentage Share: 7.33%

Effective as of the Floor 24 Lease Date, Tenant’s Percentage Share for Floor 24
shall be: 2.88%

Effective as of the Floor 35 Lease Date, Tenant’s Percentage Share for Floor 35
shall be: 2.90%

Effective as of the Partial Floor 22 Lease Date, Tenant’s Percentage Share for
Partial Floor 22, as defined in the Third Amendment, shall be: 1.58%

Effective as of the 276 Square Foot Portion of Floor 22 Lease Date, Tenant’s
Percentage Share for the 276 Square Foot Portion of Floor 22, as defined in the
Fourth Amendment, shall be: .042%

Effective as of the Suite 2250 Lease Date, Tenant’s Percentage Share for Suite 2250,
as defined in the Seventh Amendment, shall be: 1.20%

Effective as of the Balance of Floor 22 Lease Date, Tenant’s Percentage Share for
the Balance of Floor 22, as defined in the Eighth Amendment, shall be: 0.06%

Effective as of the Partial Floor 23 Lease Date, Tenant’s Percentage Share for
Partial Floor 23, as defined in the Sixth Amendment, shall be: 2.35%

 

 

Effective as of the Withheld Portion of Floor 23 Lease Date, Tenant’s Percentage
Share for the Withheld Portion of Floor 23, as defined in the Ninth Amendment, shall
be: 0.53%

          3.7. Payment of Tenant’s Broker Commission Amounts. Landlord shall pay to Landlord’s
Broker, and cause Landlord’s Broker to pay to Montgomery Advisors, whom the parties agree shall be
deemed to be Tenant’s Broker for the purposes of this Amendment, a commission in connection with
the negotiation of this Amendment pursuant to a separate agreement between Landlord and Landlord’s
Broker. Landlord and Tenant reaffirm with respect to such Brokers the representation and warranty
and indemnity set forth in Section 30.9 of the Lease with respect to this Paragraph 3.7.

     4. The Withheld Portion of Floor 23 to be Delivered in “As-Is” Condition. Landlord
and Tenant confirm that the Withheld Portion of Floor 23 shall be delivered to Tenant in its
“as-is” condition on the Withheld Portion of Floor 23 Lease Date, and that Landlord shall have no
obligation to make any alterations or improvements to the Withheld Portion of Floor 23 in
connection with such delivery. All work to the Withheld Portion of Floor 23 shall be done by
Tenant, at its sole cost and expense, pursuant to the terms and provisions of the Lease.

     5. Telecommunications Riser.

          5.1. Riser Letter. Landlord and Tenant entered into that certain letter agreement
dated November 10, 2000 (the “Riser Letter”), concerning Landlord’s installation of
telecommunications risers between Floor 3 and Floor 22 of the

 

 

Building. Landlord and Tenant hereby agree that effective as of the date of this Amendment,
the Riser Letter shall be superseded in its entirety by this Amendment.

          5.2. Riser Installation. Landlord shall install four (4) four (4)-inch risers between
the 3rd and 22nd Floors of the Building (collectively, the “Ninth Amendment
Riser”). The Ninth Amendment Riser will be located in the southwest air shaft in the core of the
Building next to stairway one. Landlord will work with Dynalectric and other tenants in the
Building to schedule the work to meet Tenant’s construction schedule. Landlord will install the
Ninth Amendment Riser pursuant to the terms and provisions of the Lease at its sole cost and
expense, subject to reimbursement by Tenant as provided in this Amendment.

          5.3. Ninth Amendment Riser Reimbursement. Tenant shall reimburse Landlord for the
cost of the installation of the Ninth Amendment Riser within thirty (30) days following its receipt
of a statement of such costs from Landlord. Tenant’s failure to timely reimburse Landlord for such
costs, or to otherwise comply with the terms and conditions of this Paragraph 5, shall be
an Event of Default.

          5.4. Riser Rent. During the period commencing upon the completion of the installation
of the Ninth Amendment Riser, and continuing until the expiration or prior termination of the
Lease, Tenant shall pay Landlord the additional sum of Three Thousand Eight Hundred and no/100s
Dollars ($3,800.00) per month as Rent for the use of the Ninth Amendment Riser (the “Ninth
Amendment Riser Rent”). The first installment of the Ninth

 

 

Amendment Riser Rent shall be due and
payable on the completion of the installation of the Ninth Amendment Riser and subsequent
installments of Ninth Amendment Riser Rent shall be payable in the manner and at the times as
provided for Rent to be paid under the Lease. In the event the completion of the installation of
the Ninth Amendment Riser, and/or the expiration or prior termination of the Lease, does not occur
on the first day of the month, the Ninth Amendment Riser Rent for the partial month shall be
prorated.

          5.5. Removal of Riser Equipment. Upon the expiration or prior termination of the
Lease, Tenant shall remove all of its cable, telecommunications equipment, and any other personal
property installed by or on behalf of Tenant in the Ninth Amendment Riser, and deliver the Ninth
Amendment Riser to Landlord in empty, good condition and repair. Except as otherwise expressly
provided in this Amendment, all of the terms and provisions of the Lease shall apply to the Ninth
Amendment Riser and Tenant’s use thereof.

     6. Interpretation of Amendment. This Amendment and the Lease shall be construed as a
whole in order to effectuate the intent of the parties to amend the Lease in the manner specified
in this Amendment. All provisions of the lease affected by this Amendment shall be deemed amended
regardless of whether so specified in this Amendment. Subject to the foregoing, if any provision
of the Lease conflicts with any provision of this Amendment, the provision of this Amendment shall
control.

     7. Execution and Counterparts. This Amendment may be

 

 

executed in any number of
counterparts, each of which when so executed shall be deemed an original, and all of which
counterparts shall constitute one and the same Amendment.

     8. No Further Amendment. Except as amended by this Amendment, the Lease shall
continue in full force and effect in accordance with its terms.

 

 

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	POST-MONTGOMERY ASSOCIATES,	 	 	 	THOMAS WEISEL PARTNERS GROUP	 	 
	a California general	 	 	 	LLC, a Delaware limited	 	 
	partnership	 	 	 	liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	CUSHMAN & WAKEFIELD	 	 	 	By	 	: /s/ Shaugn Stanley	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	OF CALIFORNIA, INC.	 	 	 	 	 	(signature)	 	 
	 	 	as agent for	 	 	 	 	 	 	 	 
	 	 	THE PRUDENTIAL INSURANCE	 	 	 	 	 	Shaugn Stanley	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	COMPANY OF AMERICA,	 	 	 	 	 	(type or print name)	 	 
	 	 	a general partner	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Its:
	 	CFO/Partner	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ellen M. Kovach	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(signature)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Ellen M. Kovach	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(type or print name)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	General Manager	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	UBS ASSET MANAGEMENT (NEW	 	 	 	 	 	 	 	 
	 	 	YORK), INC., as agent for	 	 	 	 	 	 	 	 
	 	 	NLI PROPERTIES WEST, INC.,	 	 	 	 	 	 	 	 
	 	 	a general partner	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott M. Dalrymple	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(signature)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Scott M. Dalrymple	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(type or print name)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	Director	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

 

 

TENTH AMENDMENT TO OFFICE LEASE

     THIS TENTH AMENDMENT TO OFFICE LEASE (“this Amendment” or “the Tenth Amendment”) is made and
entered into as of this 31st of July, 2003, by and between POST-MONTGOMERY ASSOCIATES, a California
general partnership (“Landlord”), and THOMAS WEISEL PARTNERS GROUP LLC, a Delaware limited
liability company (“Tenant”).

     RECITALS:

     This Amendment is made and entered into based upon the following facts, understandings and
intentions of the parties:

     A. Landlord and Tenant have previously entered into that certain Office Lease, dated December
7, 1998 (the “Original Lease”), which was amended by that certain First Amendment to Office Lease,
dated June 11, 1999 (the “First Amendment”), that certain Second Amendment to Office Lease, dated
June 11, 1999 (the “Second Amendment”), that certain Third Amendment to Office Lease, dated June
30, 1999, that certain Fourth Amendment to Office Lease, dated September 27, 1999 (“Fourth
Amendment”), that certain letter agreement dated July 9, 1999 (the “July 9, 1999, Letter
Agreement”), that certain letter agreement dated October 16, 1999 (the “October 16, 1999, Letter
Agreement”), that certain Fifth Amendment to Office Lease, dated as of November 19, 1999 (“Fifth
Amendment”), that certain Sixth Amendment to Office Lease, dated as of June 9, 2000 (“Sixth
Amendment”), that certain Seventh Amendment to Office Lease, dated as of July 31, 2000 (“Seventh
Amendment”), that certain Eighth Amendment to Office Lease, dated as of October 1, 2000 (“Eighth
Amendment”), and that certain Ninth Amendment to Office Lease, dated as of December 18, 2000
(“Ninth Amendment”), which Original Lease, First Amendment, Second Amendment, Third Amendment,
Fourth Amendment, July 9, 1999, Letter Agreement, October 16, 1999, Letter Agreement, Fifth
Amendment, Sixth Amendment, Seventh Amendment, Eighth Amendment, and Ninth Amendment are
collectively referred to as the “Lease”. Pursuant to the Lease, Landlord has leased to Tenant, and
Tenant has leased from Landlord, the Premises more particularly described in the Lease located on
the Service Level, 22nd Floor, 23rd Floor, 24th Floor, 35th Floor, 36th Floor, 37th Floor, and 38th
Floor of the Complex.

     B. Landlord and Tenant have agreed to restructure the Lease such that Tenant will surrender
Floor 22 (except for the 221 RSF of Floor 22 used by Tenant for its uninterrupted power source
equipment (the “Floor 22 UPS Room”)), Floor 23, and at Tenant’s option pursuant to Paragraph
2(b) below, Floor 24 (collectively, the “Surrendered Floors”) to Landlord and terminate the
Lease as to the Surrendered Floors. Landlord is willing to accept such surrender of the
Surrendered Floors and termination of the Lease as to the Surrendered Floors on the terms and
conditions stated in this Amendment.

     C. Landlord and Tenant have further agreed, as part of the restructuring of the Lease, that
the Term of the Lease shall be extended (except as to the Surrendered Floors) to March 16, 2015,
and that the Base Rent payable by Tenant shall be reduced effective January 1, 2004,

 

 

subject to further adjustment on March 17, 2005, based on Landlord’s re-measurement of the
Building.

     D. In order to effectuate the foregoing, Landlord and Tenant desire to enter into this
Amendment to effect the matters stated in Recitals B and C.

     NOW, THEREFORE, in consideration of the foregoing Recitals, and the mutual covenants and
promises of the parties herein contained, the parties agree as follows:

     2. Defined Terms. All capitalized terms used herein which are defined in the Lease
and not otherwise defined herein shall have the meaning set forth for such terms in the Lease.

     3. Termination of Lease as to the Surrendered Floors.

          (a) Partial Termination. Subject to the provisions of Paragraph 2(b) below,
the Lease shall terminate as to the Surrendered Floors as of March 16, 2005 (the “Termination
Date”). The Termination Date is the final date for Tenant’s occupancy of the Surrendered Floors
under the Lease, and any failure of Tenant to surrender the Surrendered Floors to Landlord as
required in this Amendment by the Termination Date shall be subject to Tenant’s indemnification
obligations with respect thereto as set forth in Paragraph 5 below, as well as any remedies
available to Landlord at law or in equity with respect to such failure to vacate and/or surrender
the Surrendered Floors.

          (b) Option to Retain Floor 24. Notwithstanding the provisions of Paragraph
2(a) above, Tenant shall have the option to retain Floor 24 on the terms and conditions
described in this Paragraph 2(b) (the “Floor 24 Option”). If Tenant desires to exercise
the Floor 24 Option, Tenant shall deliver to Landlord Tenant’s unconditional written notice of its
election to retain Floor 24 on or before March 16, 2004. The failure of Tenant so to exercise its
Floor 24 Option shall terminate Tenant’s Floor 24 Option as of 11:59 p.m. on March 16, 2004. The
effectiveness of Tenant’s exercise of its Floor 24 Option is in each instance conditioned on the
following as of the date of delivery of Tenant’s notice of its election to exercise such option:
(i) Tenant has not entered into an assignment of the Lease requiring Landlord’s consent; and (ii)
no Event of Default has occurred which remains uncured.

          (c) Recognition of Subtenant. Notwithstanding the termination of the Lease with
respect to Floor 22 (excluding the Floor 22 UPS Room), Landlord agrees that the right of possession
of the tenant under that certain Sublease Agreement between Tenant, as sublessor, and Schnader
Harrison Segal & Lewis LLP (“Subtenant”), as sublessee, dated September 30, 2002, respecting Floor
22 (excluding the Floor 22 UPS Room) (the “Sublease”) shall not be disturbed, and Landlord shall
accept Subtenant as Landlord’s direct tenant under the terms and provisions of the Sublease
effective on March 17, 2005. Prior to such date Landlord agrees to execute an Assignment and
Attornment Agreement substantially in the form of Attachment No. 2 attached hereto (the “Assignment
Agreement”). In consideration of Landlord’s agreement to recognize Subtenant, subject to the terms
and conditions of this Paragraph 2(c), Tenant agrees that it shall not amend, cancel, or
otherwise modify the Sublease, nor shall Tenant consent to an

 

 

assignment by Subtenant under the Sublease, without Landlord’s prior written consent, which consent
Landlord may withhold in its reasonable discretion.

     4. Continuing Performance of Obligations. Until the Termination Date, Landlord and
Tenant shall continue to perform all of their respective obligations under the Lease with respect
to the Surrendered Floors in accordance with its terms, as amended by this Amendment.

     5. Surrender of the Surrendered Floors; Landlord’s Relocation Right for Floor 22 UPS
Room.

          (a) Condition of Surrendered Floors.

               (i) Tenant shall surrender Floor 22 (exclusive of the Floor 22 UPS Room) to Landlord in
accordance with the provisions of Paragraph 2(c) above not later than 11:59 p.m. on the
Termination Date and Tenant shall have no repair or restoration obligation with respect to such
premises unless the Sublease has terminated. If the Sublease has terminated, then Tenant shall
surrender such premises in the condition required by the Lease.

               (ii) Subject to Paragraph 4(b) below, Tenant shall surrender Floor 23 to Landlord not
later than 11:59 p.m. on the Termination Date in the condition required by the Lease.

               (iii) Subject to the provisions of Paragraph 2(b) and Paragraph 4(b), Tenant shall
surrender Floor 24 to Landlord not later than 11:59 p.m. on the Termination Date in the condition
required by the Lease.

          (b) Tenant’s Obligation to Leave Personal Property; Effect of Failure of Tenant to Remove
Personal Property. To assist Landlord in marketing the Surrendered Floors, Tenant shall leave
in the Surrendered Floors all of Tenant’s office furniture (such as work stations, chairs and
built-ins) and related equipment on the Termination Date until the earlier of December 31, 2005 or
such earlier date as Landlord may designate on not less than 45 days’ prior written notice to
Tenant. All of Tenant’s personal property, furniture, trade fixtures and equipment remaining in
the Surrendered Floors after the applicable surrender date under Paragraph 4(a) above shall
automatically become the property of Landlord, and Landlord shall have the right to dispose of such
personal property, furniture, trade fixtures and equipment in any manner necessary or appropriate
in Landlord’s sole judgment, subject to the provisions of Paragraph 2(c) above and the
provisions of that certain Agreement and Landlord Waiver among Landlord, Tenant and The CIT
Group/Equipment Financing, Inc., dated September 1, 1999, and that certain Agreement and Landlord
Waiver among Landlord, Tenant and The CIT Group/Equipment Financing, Inc., (the “Waivers”). Tenant
waives any and all rights with respect to any claim in such personal property, furniture, trade
fixtures and equipment and its method of disposition by Landlord. Any costs incurred by Landlord
in so disposing of Tenant’s personal property, furniture, trade fixtures or equipment shall be
deducted from Tenant’s Security Deposit prior to the return of the Security Deposit to Tenant in
accordance with Section 26 of the Lease.

          (c) No Further Encumbrance. Tenant agrees that it shall not, from and after the date
of this Amendment, encumber or further encumber any of Tenant’s Alterations

 

 

(including the Surrendered Floors). Tenant further agrees that Landlord shall not be required to, nor
shall Tenant request that Landlord, enter into any agreement similar to the Waivers that result in
Landlord’s waiver of its rights of distraint or levy with respect to Tenant’s Alterations located
at the Premises; provided the foregoing shall not limit Tenant’s right to further encumber Tenant’s
personal property.

          (d) Relocation of Floor 22 UPS Room. Landlord shall have the right at any time after
the expiration or prior termination of the Sublease referenced in Paragraph 2(c) above to
require Tenant to relocate the Floor 22 UPS Room to other space within the Premises not later than
sixty (60) days following Tenant’s receipt of Landlord’s notice. Such relocation shall be
performed by Tenant at its sole cost and expense and in accordance with the Requirements and
Landlord’s then-current Construction and Remodeling Guide.

          (e) Riser Closets. Beginning on the Surrender Date, Tenant shall have the continuing
right to surrender one or more telecommunication risers currently used by Tenant upon not less than
thirty (30) days prior written notice, in which case any monthly payments associated with such
risers shall terminate as the date of surrender. The surrender of such telecommunication risers
shall be in accordance with the terms of the Lease.

     6. Obligations of Tenant in Connection with Surrender. Tenant shall deliver
exclusive possession of the Surrendered Floors to Landlord under this Amendment, free and clear of
any and all rights, claims or occupancy agreements of any third party effectuated by or through, or
holding under, Tenant, except as otherwise provided in Paragraph 2(c) above.

     7. Certifications By Tenant. Tenant certifies, warrants and represents to Landlord
that, as of the date of this Amendment: (i) to Tenant’s knowledge, Landlord is not in default under
the Lease, Tenant has no defense against enforcement of any of Tenant’s obligations under the
Lease, and Tenant has no right of offset or deduction with respect to any amounts payable by Tenant
under the Lease; (ii) Tenant has not effected any assignment under the Lease; and (iii) as of the
Termination Date, except as otherwise provided in Paragraph 2(c) above, no third party will
have any right to possession or occupancy of the Surrendered Floors.

     8. Limited Mutual Release. With respect to the Surrendered Floors, and except as
hereinafter otherwise provided, upon termination of the Lease with respect to the Surrendered
Floors in accordance with this Amendment each of Landlord and Tenant, for itself and on behalf of
its respective agents, employees, officers, directors, partners, representatives, heirs,
administrators, predecessors, successors and assigns, does hereby release, waive and forever
discharge the other party and its agents, employees, officers, directors, partners,
representatives, heirs, administrators, successors and assigns, from any and all claims, demands,
damages, liabilities, obligations, causes of action, costs and expenses of any kind whether
foreseen or unforeseen with respect to the rights, duties and obligations of Landlord and Tenant
under the Lease. Landlord and Tenant acknowledge, however, that this release does not include or
extend to any term, covenant or condition of this Amendment, any indemnity obligation under the
Lease, any monetary obligations of Tenant owing under the Lease, or any payment obligation under
the Lease pertaining to amounts required by the Lease to be adjusted at or after the expiration or
prior termination thereof (including, but not limited to, Landlord’s right to calculate the

 

 

adjustment to Escalation Rent at the time specified in Section 5.2 of the Lease and Tenant’s
obligation to pay to Landlord any additional Escalation Rent as and when required in Section 5.2 of
the Lease) relating to the period prior to the termination thereof, all of which shall continue in
effect and survive the termination of the Lease notwithstanding the release of claims hereunder.
Each party acknowledges that the release of claims hereunder extends to both known and unknown
claims and each party waives and relinquishes any right or benefit which it has or may have under
the provisions of applicable California law, including California Civil Code Section 1542.

     9. Basic Lease Information. Effective as of 12:00 a.m. on March 17, 2005, the Basic
Lease Information shall be amended in its entirety to read as stated on Attachment No. 1 to this
Amendment. Tenant acknowledges that Landlord is re-measuring the Complex, using the 1996 ANSI/BOMA
Z65.1-1996 Standards, and that such re-measurement is incomplete on the date of this Amendment.
Landlord and Tenant agree that, on the completion of such re-measurement, they shall enter into a
further amendment of the Lease to set forth the Rentable Area of each Floor of the Premises and the
Base Rent for each Floor of the Premises set forth in Attachment No. 1 (the Basic Lease
Information), using the figures obtained by Landlord in such re-measurement of the Complex.
Notwithstanding the matters contained in the preceding sentence, the failure of Landlord and Tenant
to enter into such a further amendment shall in no way invalidate Landlord’s re-measurement
figures, which shall be conclusively binding on Tenant absent manifest error.

     10. Substitution of New Exhibit A-11. Effective as of 12:00 a.m. on March 17, 2005,
Exhibit A-10, which is attached to the Ninth Amendment, shall be superseded in its entirety by (i)
if Tenant surrendered Floor 24, Exhibit A-11 (Alternate A), attached to this Amendment, or
(ii) if Tenant retained Floor 24, Exhibit A-11 (Alternate B), attached to this Amendment.

     11. Temporary Adjustment of Base Rent. Effective January 1, 2004, and continuing
through March 16, 2005, the Base Rent for the Premises shall be equal to $495,792.00 per month.

     12. Security Deposit.

          (a) Increase in Security Deposit. Effective as of the date of this Amendment, the
Security Deposit shall be increased to the amount of $4,240,570 (the “LC Face Amount”) in
accordance with the following schedule:

	 	 	 	 	 
	Date of this Amendment:
	 	$	1,240,570	 
	January 1, 2004:
	 	$	2,240,570	 
	January 1, 2005:
	 	$	4,240,570	 

          Tenant has deposited with Landlord a replacement letter of credit in the amount of $1,240,570
in compliance with Section 26.2 of the Lease. Tenant covenants that each subsequent replacement
letter of credit in the increased amount scheduled above shall comply with the provisions of
Section 26.2 of the Lease.

 

 

          (b) Reductions in Security Deposit.

               (i) In accordance with the provisions of Section 30.17 of the Lease, Tenant is obligated to
deliver to Landlord an annual audited statement of financial condition (the “Annual Audited
Financial Statement”) until such time as Tenant is a publicly traded entity listed on a national or
regional stock exchange or over the counter stock exchange. For purposes of this Section 11.b, the
Annual Audited Financial shall be prepared by a nationally recognized accounting firm and shall
continue to be delivered to Landlord not later than June 30 of each year for the previous calendar
year during any period which Tenant is seeking to have the Letter of Credit reduced,
notwithstanding that Tenant has no obligation to deliver such statement under Section 30.17 of the
Lease.

               (ii) Beginning in 2010, and on each year thereafter (each, a “Potential Reduction Date”),
Tenant shall have the right to reduce the LC Face Amount by the sum of Eight Hundred Thousand
Dollars ($800,000.00), provided that the following conditions precedent have been satisfied in the
Annual Audited Financial Statement for the immediately preceding year:

               (1) Cash and Cash Equivalents (determined in accordance with GAAP) are not less than Fifty
Million Dollars ($50,000,000.00), and

               (2) Net Income (determined in accordance with GAAP) is not less than One Hundred Million
Dollars ($100,000,000.00), and

               (3) Total Members’ Equity (determined in accordance with GAAP) is not less than One Hundred
Million Dollars ($100,000,000.00); and

               (4) No Event of Default shall have occurred and be continuing under the Lease, as amended by
this Amendment, either (1) at any time during the twelve- (12-) month period immediately preceding
the respective Potential Reduction Date, or (2) at the time Tenant seeks the actual reduction in
the LC Face Amount.

               (iii) The right of Tenant to reduce the LC Face Amount as provided in this Paragraph
11(b) shall be personal to Thomas Weisel Partners Group LLC and shall be available only to
Thomas Weisel Partners Group LLC or any transferee for which Landlord’s consent is not required
under Section 17.8 of the Lease.

               (iv) Notwithstanding anything herein to the contrary, in no event shall the LC Face
Amount ever be reduced below the sum of One Million Dollars ($1,000,000.00).

     12. Waiver of Termination Right and Expansion Rights. Effective as of the date of
this Amendment, Tenant waives its rights (i) under Section 2.4 of the Lease to expand the Premises
to include the Expansion Premises, and (ii) under Section 2.6 of the Lease to terminate the Lease.

 

 

     13. Complete Agreement. This Amendment contains the complete agreement and
understanding between the parties with respect to the subject matter hereof. All prior
discussions,
documents, negotiations or agreements with respect to the subject matter of this Amendment are
merged into and superseded by this Amendment.

     14. Interpretation of Amendment. This Amendment and the Lease shall be construed as a
whole in order to effectuate the intent of the parties to amend the Lease in the manner specified
in this Amendment. All provisions of the Lease affected by this Amendment shall be deemed amended
regardless of whether so specified in this Amendment. Subject to the foregoing, if any provision
of the Lease conflicts with any provision of this Amendment, the provision of this Amendment shall
control.

     15. No Further Amendment. Except as amended by this Amendment, the Lease shall
continue in full force and effect in accordance with its terms.

     16. Captions. The captions to the Paragraphs and subparagraphs of this Amendment are
solely for convenience of reference and shall be disregarded in the construction, interpretation or
enforcement of this Amendment.

     17. Execution and Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed an original, and all of which
counterparts shall constitute one and the same Amendment.

     18. Brokers. To the extent of any separate written agreement entered into by Landlord
or Tenant, respectively, Landlord and Tenant, respectively, shall each pay any commission or fee
due to any real estate broker or agent who is entitled to such commission or fee pursuant to such
written agreement in connection with this Amendment. Each party shall indemnify, defend, protect
and hold the other party harmless from and against any and all loss, liabilities, claims, damages,
causes of action, costs and expenses (including, without limitation, reasonable attorneys’ fees)
arising out of or in connection with claims made by any broker or individual for commissions or
fees resulting from the actions or contacts with the indemnifying party with respect to this
Amendment.

     19. Authority. Landlord and Tenant each warrant and represent to the other that each
person executing this Amendment on behalf of Landlord and Tenant, respectively, is authorized and
empowered to do so, and thereby to bind the party on whose behalf such person is executing this
Amendment.

 

 

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

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	POST-MONTGOMERY ASSOCIATES,	 	 	 	THOMAS WEISEL PARTNERS
	a California general partnership	 	 	 	GROUP LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	CUSHMAN & WAKEFIELD OF	 	 	 	 	 	 	 	 
	 	 	CALIFORNIA, INC., as agent for	 	 	 	 	 	 	 	 
	 	 	THE PRUDENTIAL INSURANCE	 	 	 	 	 	 	 	 
	 	 	COMPANY OF AMERICA,	 	 	 	By:	 	/s/ Blake Jorgensen	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	a general partner	 	 	 	 	 	(signature)	 	 
	 	 	 	 	 	 	 	 	Blake Jorgensen	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	(type or print name)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ellen M. Kovach
	 	 	 	Its:
	 	COO	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	(signature)	 	 	 	 	 	 	 	 
	 	 	Ellen M. Kovach	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(type or print name)	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Shaugn Stanley	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	General Manager
	 	 	 	 	 	(signature)	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Shaugn Stanley	 	 
	 	 	 	 	 	 	 	 	 	 	 
	By:	 	UBS REALTY INVESTORS LLC, as agent	 	 	 	(type or print name)	 	 
	 	 	for NLI PROPERTIES WEST, INC., a	 	 	 	 	 	 	 	 
	 	 	general partner	 	 	 	Its:	 	CAO	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas Enger	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(signature)	 	 	 	 	 	 	 	 
	 	 	Thomas Enger	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(type or print name)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	Director	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

 

 

ELEVENTH AMENDMENT TO OFFICE LEASE

     THIS ELEVENTH AMENDMENT TO OFFICE LEASE (“this Amendment” or “the Eleventh Amendment”) is made
and entered into as of this 5th of February, 2004, by and between POST-MONTGOMERY
ASSOCIATES, a California general partnership (“Landlord”), and THOMAS WEISEL PARTNERS GROUP LLC, a
Delaware limited liability company (“Tenant”).

     RECITALS:

     This Amendment is made and entered into based upon the following facts, understandings and
intentions of the parties:

     A. Landlord and Tenant have previously entered into that certain Office Lease, dated December
7, 1998 (the “Original Lease”), which was amended by that certain First Amendment to Office Lease,
dated June 11, 1999 (the “First Amendment”), that certain Second Amendment to Office Lease, dated
June 11, 1999 (the “Second Amendment”), that certain Third Amendment to Office Lease, dated June
30, 1999, that certain Fourth Amendment to Office Lease, dated September 27, 1999 (“Fourth
Amendment”), that certain letter agreement dated July 9, 1999 (the “July 9, 1999, Letter
Agreement”), that certain letter agreement dated October 16, 1999 (the “October 16, 1999, Letter
Agreement”), that certain Fifth Amendment to Office Lease, dated as of November 19, 1999 (“Fifth
Amendment”), that certain Sixth Amendment to Office Lease, dated as of June 9, 2000 (“Sixth
Amendment”), that certain Seventh Amendment to Office Lease, dated as of July 31, 2000 (“Seventh
Amendment”), that certain Eighth Amendment to Office Lease, dated as of October 1, 2000 (“Eighth
Amendment”), that certain Ninth Amendment to Office Lease, dated as of December 18, 2000 (“Ninth
Amendment”), and that certain Tenth Amendment to Office Lease dated as of July 31, 2003 (“Tenth
Amendment”), which Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth
Amendment, July 9, 1999, Letter Agreement, October 16, 1999, Letter Agreement, Fifth Amendment,
Sixth Amendment, Seventh Amendment, Eighth Amendment, Ninth Amendment and Tenth Amendment are
collectively referred to as the “Lease”. Pursuant to the Lease, Landlord has leased to Tenant, and
Tenant has leased from Landlord, the Premises more particularly described in the Lease located on
the Service Level, 22nd Floor, 23rd Floor, 24th Floor, 35th Floor, 36th Floor, 37th Floor, and 38th
Floor of the Complex.

     B. Pursuant to the Tenth Amendment, Landlord and Tenant have agreed to restructure the Lease
such that Tenant will surrender Floor 22, exclusive of approximately 221 rentable square feet
currently containing Tenant’s UPS equipment (the “Floor 22 UPS Room”) effective as of March 16,
2005.

     C. Pursuant to the Assignment and Attornment Agreement being executed concurrently herewith,
Tenant has the right to add the Floor 22 UPS Room to the premises currently subleased to Schnader
Harrison Segal & Lewis LLP upon the satisfaction of certain

 

 

terms and conditions outlined in such agreement. If the Floor 22 UPS Room is added to the
premises currently leased to Schnader Harrison Segal & Lewis LLP, then in accordance with the
terms of the Assignment and Attornment Agreement, the sublease rent and sublessee’s share of
operating expenses is increased on a pro rata basis.

     D. Landlord is willing to accept the surrender of the Floor 22 UPS Room effective as of March
16, 2005 and termination of the Lease as to the Floor 22 UPS Room on the terms and conditions
stated in this Amendment.

     E. In order to effectuate the foregoing, Landlord and Tenant desire to enter into this
Amendment to effect the matters stated in Recitals B.

     NOW, THEREFORE, in consideration of the foregoing Recitals, and the mutual covenants and
promises of the parties herein contained, the parties agree as follows:

     1. Defined Terms. All capitalized terms used herein which are defined in the Lease
and not otherwise defined herein shall have the meaning set forth for such terms in the Lease.

     2. Termination of the Lease as to the Floor 22 UPS Room. If, pursuant to Section 10
of the Assignment and Attornment Agreement, Tenant has added the Floor 22 UPS Room to the premises
then being subleased to Schnader Harrison Segal & Lewis LLP, then effective as of the Termination
Date, the Floor 22 UPS Room shall be included within the definition of “Surrendered Floors” for
purposes of the Tenth Amendment. If the Floor 22 UPS Room is deemed to be a “Surrendered Floor”,
then Tenant’s repair and restoration obligation for such portion of the 22nd Floor shall
be the same as for the balance of the 22nd Floor.

     3. Basic Lease Information. In the event that the Floor 22 UPS Room becomes part of
the Surrendered Floors, then the references in Attachment No. 1 to the 10th Amendment to
the Floor 22 UPS Room shall be inapplicable.

     4. Complete Agreement. This Amendment contains the complete agreement and
understanding between the parties with respect to the subject matter hereof. All prior
discussions, documents, negotiations or agreements with respect to the subject matter of this
Amendment are merged into and superseded by this Amendment.

     5. Interpretation of Amendment. This Amendment and the Lease shall be construed as a
whole in order to effectuate the intent of the parties to amend the Lease in the manner specified
in this Amendment. All provisions of the Lease affected by this Amendment shall be deemed amended
regardless of whether so specified in this Amendment. Subject to the foregoing, if any provision
of the Lease conflicts with any provision of this Amendment, the provision of this Amendment shall
control.

     6. No Further Amendment. Except as amended by this Amendment, the Lease shall
continue in full force and effect in accordance with its terms.

 

 

     7. Captions. The captions to the Paragraphs and subparagraphs of this Amendment are
solely for convenience of reference and shall be disregarded in the construction, interpretation or
enforcement of this Amendment.

     8. Execution and Counterparts. This Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed an original, and all of which
counterparts shall constitute one and the same Amendment.

     9. Brokers. To the extent of any separate written agreement entered into by Landlord
or Tenant, respectively, Landlord and Tenant, respectively, shall each pay any commission or fee
due to any real estate broker or agent who is entitled to such commission or fee pursuant to such
written agreement in connection with this Amendment. Each party shall indemnify, defend, protect
and hold the other party harmless from and against any and all loss, liabilities, claims, damages,
causes of action, costs and expenses (including, without limitation, reasonable attorneys’ fees)
arising out of or in connection with claims made by any broker or individual for commissions or
fees resulting from the actions or contacts with the indemnifying party with respect to this
Amendment.

     10. Authority. Landlord and Tenant each warrant and represent to the other that each
person executing this Amendment on behalf of Landlord and Tenant, respectively, is authorized and
empowered to do so, and thereby to bind the party on whose behalf such person is executing this
Amendment.

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

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	POST-MONTGOMERY ASSOCIATES,	 	 	 	THOMAS WEISEL PARTNERS	 	 
	a California general partnership	 	 	 	GROUP LLC, a Delaware limited liability
	 	 	 	 	 	 	 	 	company	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	CUSHMAN & WAKEFIELD OF	 	 	 	 	 	 	 	 
	 	 	CALIFORNIA, INC., as agent for	 	 	 	 	 	 	 	 
	 	 	THE PRUDENTIAL INSURANCE	 	 	 	 	 	 	 	 
	 	 	COMPANY OF AMERICA,	 	 	 	By:	 	/s/ Shaugn Stanley	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	a general partner	 	 	 	 	 	(signature)	 	 
	 	 	 	 	 	 	 	 	Shaugn Stanley	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	(type or print name)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ellen M. Kovach
	 	 	 	Its:
	 	CAO/Partner	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	(signature)	 	 	 	 	 	 	 	 
	 	 	Ellen M. Kovach	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(type or print name)
	 	 	 	By:
	 	/s/ Robert West	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	General Manager
	 	 	 	 	 	(signature)	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Robert West	 	 
	 	 	 	 	 	 	 	 	 	 	 
	By:	 	UBS REALTY INVESTORS LLC, as agent	 	 	 	 	 	(type or print name)	 	 
	 	 	for NLI PROPERTIES WEST, INC., a	 	 	 	 	 	 	 	 
	 	 	general partner	 	 	 	Its:	 	 CFO	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas Enger	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(signature)	 	 	 	 	 	 	 	 
	 	 	Thomas Enger	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	(type or print name)	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	Directorexv10w8

 

EXHIBIT 10.8

STANDARD OFFICE LEASE FOR

88 KEARNY

BY AND BETWEEN

TEACHERS INSURANCE ANNUITY ASSOCIATION OF AMERICA,

for the benefit of its separate Real Estate Account,

AS LANDLORD,

AND

THOMAS WEISEL PARTNERS GROUP, LLC, a

Delaware limited liability company

AS TENANT

SUITES 1310 and 2100

88 KEARNY STREET, SAN FRANCISCO, CALIFORNIA 94108

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1
	 	 	 	 
	 
	 	 	 	 
	BASIC LEASE PROVISIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2
	 	 	 	 
	 
	 	 	 	 
	TERM/PREMISES
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 3
	 	 	 	 
	 
	 	 	 	 
	RENTAL
	 	 	4	 
	(a) Basic Rental
	 	 	4	 
	(b) Increase in Direct Costs
	 	 	4	 
	(c) Definitions
	 	 	5	 
	(d) Determination of Payment
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 4
	 	 	 	 
	 
	 	 	 	 
	SECURITY DEPOSIT
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 5
	 	 	 	 
	 
	 	 	 	 
	HOLDING OVER
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 6
	 	 	 	 
	 
	 	 	 	 
	PERSONAL PROPERTY TAXES
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 7
	 	 	 	 
	 
	 	 	 	 
	USE
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 8
	 	 	 	 
	 
	 	 	 	 
	CONDITION OF PREMISES
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 9
	 	 	 	 
	 
	 	 	 	 
	REPAIRS AND ALTERATIONS
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 10
	 	 	 	 

 

 

	 	 	 	 	 
	 	 	Page	 
	LIENS
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 11
	 	 	 	 
	 
	 	 	 	 
	PROJECT SERVICES
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 12
	 	 	 	 
	 
	 	 	 	 
	RIGHTS OF LANDLORD
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 13
	 	 	 	 
	 
	 	 	 	 
	INDEMNITY; EXEMPTION OF LANDLORD FROM LIABILITY
	 	 	18	 
	(a) Indemnity
	 	 	18	 
	 
	 	 	 	 
	(b)Exemption of Landlord from Liability
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 14
	 	 	 	 
	 
	 	 	 	 
	INSURANCE
	 	 	19	 
	(a) Tenant’s Insurance
	 	 	19	 
	(b) Form of Policies
	 	 	20	 
	(c) Landlord’s Insurance
	 	 	20	 
	(d) Waiver of Subrogation
	 	 	21	 
	(e) Compliance with Law
	 	 	21	 
	 
	 	 	 	 
	ARTICLE 15
	 	 	 	 
	 
	 	 	 	 
	ASSIGNMENT AND SUBLETTING
	 	 	22	 
	 
	 	 	 	 
	ARTICLE 16
	 	 	 	 
	 
	 	 	 	 
	DAMAGE OR DESTRUCTION
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 17
	 	 	 	 
	 
	 	 	 	 
	SUBORDINATION
	 	 	26	 
	 
	 	 	 	 
	ARTICLE 18
	 	 	 	 
	 
	 	 	 	 
	EMINENT DOMAIN
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 19
	 	 	 	 
	 
	 	 	 	 
	DEFAULT
	 	 	27	 

 

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 20
	 	 	 	 
	 
	 	 	 	 
	REMEDIES
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 21
	 	 	 	 
	 
	 	 	 	 
	TRANSFER OF LANDLORD’S INTEREST
	 	 	31	 
	 
	 	 	 	 
	ARTICLE 22
	 	 	 	 
	 
	 	 	 	 
	BROKER
	 	 	31	 
	 
	 	 	 	 
	ARTICLE 23
	 	 	 	 
	 
	 	 	 	 
	PARKING
	 	 	32	 
	 
	 	 	 	 
	ARTICLE 24
	 	 	 	 
	 
	 	 	 	 
	WAIVER
	 	 	32	 
	 
	 	 	 	 
	ARTICLE 25
	 	 	 	 
	 
	 	 	 	 
	ESTOPPEL CERTIFICATE
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 26
	 	 	 	 
	 
	 	 	 	 
	LIABILITY OF LANDLORD
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 27
	 	 	 	 
	 
	 	 	 	 
	INABILITY TO PERFORM
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 28
	 	 	 	 
	 
	 	 	 	 
	HAZARDOUS WASTE
	 	 	35	 
	 
	 	 	 	 
	ARTICLE 29
	 	 	 	 
	 
	 	 	 	 
	SURRENDER OF PREMISES; REMOVAL OF PROPERTY
	 	 	37	 
	(a) Suite 2100
	 	 	38	 
	(b) Terms
	 	 	39	 
	 
	 	 	 	 
	ARTICLE 31
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	40	 
	(a) Severability; Entire Agreement
	 	 	40	 
	(b) Attorneys’ Fees; Waiver of Jury Trial
	 	 	40	 
	(c) Time of Essence
	 	 	41	 

 

 

	 	 	 	 	 
	 	 	Page	 
	(d) Headings; Joint and Several
	 	 	41	 
	(e) Reserved Area
	 	 	41	 
	(f) NO OPTION
	 	 	41	 
	(g) Use of Project Name; Improvements
	 	 	42	 
	(h) Rules and Regulations
	 	 	42	 
	(i) Quiet Possession
	 	 	42	 
	(j) Rent 
	 	 	42	 
	(k) Successors and Assigns
	 	 	42	 
	(l) Notices
	 	 	43	 
	(m) Right of Landlord to Perform
	 	 	43	 
	(n) Access, Changes in Project, Facilities, Name
	 	 	44	 
	(o) Signing Authority
	 	 	44	 
	(p) Identification of Tenant
	 	 	45	 
	(q) Survival of Obligations
	 	 	46	 
	(r) Confidentiality
	 	 	46	 
	(s) Governing Law
	 	 	47	 
	(t)  Exhibits and Addendum
	 	 	47	 

	 	 	 
	Exhibit “A-1”

	 	Suite 1310
	Exhibit “A-2”

	 	Suite 2100
	Exhibit “B”

	 	Rules and Regulations
	Exhibit “C”

	 	Notice of Lease Term Dates and Tenant’s Proportionate Share
	Exhibit “D”

	 	Tenant Work Letter

 

 

INDEX OF DEFINED TERMS

	 	 	 
	DEFINED TERMS	 	PAGE
	Additional Rent 
	 	4
	Alterations 
	 	14
	Approved Working Drawings
	 	Exhibit D
	Architect
	 	Exhibit D
	Base Year 
	 	4
	Base, Shell and Core
	 	Exhibit D
	Basic Rental 
	 	2
	Brokers 
	 	3
	Code
	 	Exhibit D
	Commencement Date 
	 	1
	Construction Drawings
	 	Exhibit D
	Contractor
	 	Exhibit D
	Cost Proposal
	 	Exhibit D
	Cost Proposal Delivery Date
	 	Exhibit D
	Direct Costs 
	 	5
	Engineers
	 	Exhibit D
	Estimate 
	 	8
	Estimate Statement 
	 	8
	Estimated Excess 
	 	8
	Event of Default 
	 	27
	Excess 
	 	8
	Expiration Date 
	 	1
	Final Space Plan
	 	Exhibit D
	Final Working Drawings
	 	Exhibit D
	First Month’s Rent 
	 	3
	Force Majeure 
	 	34
	Hazardous Material 
	 	36
	Improvement Allowance
	 	Exhibit D
	Improvement Allowance Items
	 	Exhibit D
	Improvements
	 	Exhibit D
	Landlord 
	 	1
	Landlord Supervision Fee
	 	Exhibit D
	Laws 
	 	37
	Lease 
	 	1
	Lease Year 
	 	3
	Operating Costs 
	 	5
	Over-Allowance Amount
	 	Exhibit D
	Partnership Tenant 
	 	45
	Permits
	 	Exhibit D
	Permitted Use 
	 	2

 

 

	 	 	 
	DEFINED TERMS	 	PAGE
	Premises 
	 	1
	Project 
	 	1
	Real Property 
	 	5
	Representative 
	 	34
	Review Period 
	 	9
	Security Deposit 
	 	2
	Specifications
	 	Exhibit D
	Square Footage 
	 	2
	Standard Improvement Package
	 	Exhibit D
	Statement 
	 	8
	Substantial Completion
	 	Exhibit D
	Tax Costs 
	 	5
	Tenant 
	 	1
	Tenant Delays
	 	Exhibit D
	Tenant Improvements 
	 	13
	Tenant’s Proportionate Share 
	 	2
	Term 
	 	1
	Time Deadlines
	 	Exhibit D
	Transfer 
	 	23
	Transfer Premium 
	 	23
	Transferee 
	 	23
	2100 Commencement Date 
	 	1
	2100 Delivery Date 
	 	38

 

 

STANDARD OFFICE LEASE

          This Standard Office Lease (“Lease”) is made and entered into as of January 10, 1999, by and
between TEACHERS INSURANCE ANNUITY ASSOCIATION OF AMERICA, for the benefit of its separate Real
Estate Account (“Landlord”), and THOMAS WEISEL PARTNERS GROUP, LLC, a Delaware limited liability
company (“Tenant”).

          Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the premises initially
described as Suite No. 1310, as designated on the plan attached hereto and incorporated herein as
Exhibit “A-l”, and (subject to the terms of Article 31 of this Lease) the premises described as
Suite 2100, as designated on the plan attached hereto and incorporated herein as Exhibit “A-2”
(each and collectively, the “Premises”), of the project (“Project”) now known as 88 Kearny Street,
San Francisco, California 94108, for the Term and upon the terms and conditions hereinafter set
forth, and Landlord and Tenant hereby agree as follows:

ARTICLE 1

BASIC LEASE PROVISIONS

	 	 	 	 	 
	A.

	 	Term:
	 	The period of time beginning with Commencement
Date (defined below) and ending 120 months
after the 2100 Commencement Date (as defined
below).
	 
	 	 	 	 
	 

	 	Commencement Date:
	 	The earlier of (i) the date Tenant first
commences to conduct business in Suite 1310,
or (ii) January 17, 2000.
	 
	 	 	 	 
	 

	 	Expiration Date:
	 	The date immediately preceding the tenth
(10th) anniversary of the earlier of (i) the
date Tenant commences to conduct business in
Suite 2100 or (ii) ninety (90) days after
Landlord tenders Suite 2100 to Tenant (the
“2100 Commencement Date”); provided, however,
that if the 2100 Commencement Date is a date
other than the first day of a month, the
Expiration Date shall be the last day of the
month which is One Hundred Twenty (120) months
after the month in which the 2100 Commencement
Date falls, unless extended or earlier
terminated pursuant to this Lease.
	 
	 	 	 	 
	B.

	 	Square Footage:
	 	Suite 1310 — 5,282 rentable square feet
	 
	 	 	 	 
	C.

	 	Basic Rental:
	 	Suite 2100 — 8,997 rentable square feet

-1-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Monthly Basic	 	 	 	 
	 	 	 	 	Annual Basic	 	Monthly Basic	 	Rental Per Rentable	 	 	 	 
	 	 	Lease Year	 	Rental	 	Rental	 	Square Foot	 	 	 	 
	 

	 	Commencement Date

through the 2100

Commencement Date
	 	$	253,536.00	 	 	$	21,128.00	 	 	$4.00/rsf	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	2100 Commencement
Date through the
date which is 5
years after the
2100 Commencement
Date (Lease Years
1-5)
	 	$	521,826.00	 	 	$	43,485.50	 	 	$4.83333/rsf	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	The date which is 5
years after the
2100 Commencement
Date through the
Expiration Date
(Lease Years
6-10)
	 	$	575,808.00	 	 	$	47,984.00	 	 	$5.33333/rsf	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	D.

	 	Base Year:
	 	 	2000	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	E.

	 	Tenant’s
Proportionate
	 	Suite 1310-
	 	 	2.314	%	 	(based on 228,302	 	 	 	 
		 	Share:
	 		 	 			 	rsf in the Project)	 	 	 	 
	 

	 	 	 	Suite 2100 -
	 	 	3.941	%	 	(based on 228,302	 	 	 	 
	 

	 	 	 		 	 			 	rsf in the Project)	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	G.

	 	Permitted Use:
	 	General office use
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	H.	 	Broker(s):	 	Insignia/ESG, Inc. and Montgomery Advisors
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I.	 	First Month’s Rent:	 	The first full month’s rent of $21,128.00

shall be due and payable by Tenant to 

Landlord upon Tenant’s execution of this

Lease.

ARTICLE 2

TERM/PREMISES

          The Term of this Lease shall commence on the Commencement Date as set forth in Article l.A. of
the Basic Lease Provisions and shall end on the Expiration Date set forth in Article l.A. of the
Basic Lease Provisions. For purposes of this Lease, the term “Lease Year” shall mean each
consecutive twelve (12) month period during the Lease Term, with the first Lease Year commencing on
the Commencement Date; however, (a) if the Commencement Date falls on a day other than the first
day of a

-2-

 

calendar month, the first Lease Year shall end on the last day of the eleventh (11th) month
after the Commencement Date and the second (2nd) and each succeeding Lease Year shall commence on
the first day of the next calendar month, and (b) the last Lease Year (which may be less than a
full calendar year) shall end on the Expiration Date. If Landlord is unable to deliver possession
of Suite 1310 to Tenant on or before the anticipated Commencement Date, Landlord shall not be
subject to any liability for its failure to do so, and such failure shall not affect the validity
of this Lease nor the obligations of Tenant hereunder. Landlord and Tenant hereby stipulate that
the Premises contain the number of square feet specified in Article l.B. of the Basic Lease
Provisions. Landlord may deliver to Tenant a Commencement Letter in a form substantially similar to
that attached hereto as Exhibit “C”, which Tenant shall execute and return to Landlord within five
(5) days of receipt thereof. Failure of Tenant to timely execute and deliver the Commencement
Letter shall constitute an acknowledgment by Tenant that the statements included in such notice are
true and correct, without exception.

          Landlord has agreed, at Tenant’s request, to attempt to make additional space on the 13th
floor of the Project available to Tenant prior to the 2100 Delivery Date (as defined below).
Landlord is under no obligation to provide such additional space to Tenant. In the event that
Landlord tenders any such additional space on the 13th floor to Tenant prior to the 2100 Delivery
Date, Tenant hereby agrees to lease such space effective on the date possession is tendered to
Tenant, on an AS IS, WHEREAS basis, and on the same terms and conditions applicable to Suite 1310,
provided that Landlord has given Tenant thirty (30) days prior written notice of the availability
of the additional 13th floor space. Landlord and Tenant each hereby agree to execute an amendment
to this Lease to add such additional space to Suite 1310 and make such changes as are necessary as
a result thereof (including, without limitation, increasing rent and Tenant’s Proportionate Share).

ARTICLE 3

RENTAL

     (a) Basic Rental. Tenant agrees to pay to Landlord during the Term hereof, at
Landlord’s office or to such other person or at such other place as directed from time to
time by written notice to Tenant from Landlord, the initial monthly and annual sums as set
forth in Article l.C. of the Basic Lease Provisions, payable in advance on the first day of
each calendar month, without demand, setoff or deduction, and in the event this Lease
commences or the date of expiration of this Lease occurs other than on the first day or last
day of a calendar month or the 2100 Commencement Date occurs on a date other than on the
first day or last day of a calendar month, the rent for such month shall be prorated.
Notwithstanding the foregoing, the first full month’s rent shall be paid to Landlord in
accordance with Article 1.1. of the Basic Lease Provisions.

     (b) Increase in Direct Costs. The term “Base Year” means the calendar year set
forth in Article l.D. of the Basic Lease Provisions. If, in any

-3-

 

calendar year during the Term of this Lease, the “Direct Costs” (as hereinafter
defined) paid or incurred by Landlord shall be higher than the Direct Costs for the Base
Year, Tenant shall pay an additional sum for such and each subsequent calendar year equal to
the product of the amount set forth in Article I.E. of the Basic Lease Provisions multiplied
by such increased amount of “Direct Costs.” In the event either the Premises and/or the
Project is expanded or reduced, then Tenant’s Proportionate Share shall be appropriately
adjusted, including, without limitation, as described in Article l.E and Article 30(a)(iv)
of this Lease, and as to the calendar year in which such change occurs, Tenant’s
Proportionate Share for such year shall be determined on the basis of the number of days
during that particular calendar year that such Tenant’s Proportionate Share was in effect.
In the event this Lease shall terminate on any date other than the last day of a calendar
year, the additional sum payable hereunder by Tenant during the calendar year in which this
Lease terminates shall be prorated on the basis of the relationship which the number of days
which have elapsed from the commencement of said calendar year to and including said date on
which this Lease terminates bears to three hundred sixty-five (365). Any and all amounts due
and payable by Tenant pursuant to Article 3(b),(c) and (d) hereof shall be deemed
“Additional Rent” and Landlord shall be entitled to exercise the same rights and remedies
upon default in these payments as Landlord is entitled to exercise with respect to defaults
in monthly Basic Rental payments.

rights and remedies upon default in these payments as Landlord is entitled to
exercise with respect to defaults in monthly Basic Rental payments.

                    (c) Definitions. As used herein the term “Direct Costs” shall mean the sum of
the following:

               (i) “Tax Costs”, which shall mean any and all real estate taxes and other
similar charges on real property or improvements, assessments, water and sewer
charges, and all other charges assessed, reassessed or levied upon the Project and
appurtenances thereto and the parking or other facilities thereof, or the real
property thereunder (collectively the “Real Property”) or attributable thereto or on
the rents, issues, profits or income received or derived therefrom which are
assessed, reassessed or levied by the United States, the State of California or any
local government authority or agency or any political subdivision thereof, and shall
include Landlord’s reasonable legal fees, costs and disbursements incurred in
connection with proceedings for reduction of Tax Costs or any part thereof;
provided, however, if at any time after the date of this Lease the methods of
taxation now prevailing shall be altered so that in lieu of or as a supplement to or
a substitute for the whole or any part of any Tax Costs, there shall be assessed,
reassessed or levied (a) a tax, assessment, reassessment, levy, imposition or charge
wholly or partially as a net income, capital or franchise levy or

-4-

 

otherwise on the rents, issues, profits or income derived therefrom, or (b) a
tax, assessment, reassessment, levy (including but not limited to any municipal,
state or federal levy), imposition or charge measured by or based in whole or in
part upon the Real Property and imposed upon Landlord, or (c) a license fee measured
by the rent payable under this Lease, then all such taxes, assessments,
reassessments or levies or the part thereof so measured or based, shall be deemed to
be included in the term “Direct Costs.” In addition, when calculating Tax Costs for
the Base Year, special assessments shall only be deemed included in Tax Costs for
the Base Year to the extent that such special assessments are included in Tax Costs
for the applicable subsequent calendar year during the Term.

          (ii) “Operating Costs”, which shall mean all costs and expenses incurred by
Landlord in connection with the maintenance, operation, replacement, ownership and
repair of the Project, the equipment, the intrabuilding network cable, adjacent
walks, malls and landscaped and common areas and facilities of the Project,
including, but not limited to, salaries, wages, medical, surgical and general
welfare benefits and pension payments, payroll taxes, fringe benefits, employment
taxes, workers’ compensation, uniforms and dry cleaning thereof for all persons who
perform duties connected with the operation, maintenance and repair of the Project,
its equipment, the intrabuilding network cable and the adjacent walks and landscaped
areas, including janitorial, gardening, security, operating engineer, elevator,
painting, plumbing, electrical, carpentry, heating, ventilation, air conditioning,
window washing, hired services, a reasonable allowance for depreciation of the cost
of acquiring or the rental expense of personal property used in the maintenance,
operation and repair of the Project, accountant’s fees incurred in the preparation
of rent adjustment statements, real estate tax consulting fees, personal property
taxes on property used in the maintenance and operation of the Project, fees, costs,
expenses or dues payable pursuant to the terms of any covenants, conditions or
restrictions or owners’ association pertaining to the Project, capital expenditures
incurred to effect economies of operation of, or stability of services to, the
Project and capital expenditures required by government regulations, laws, or
ordinances (including the Americans with Disabilities Act) which were not in effect
as of the Commencement Date; costs incurred (capital or otherwise) on a regular
recurring basis every three (3) or more years for certain maintenance projects
(e.g., parking lot slurry coat or replacement of lobby and elevator cab carpeting),
in each instance amortized over their useful life, together with interest thereon at
the rate often percent (10%) per annum; the cost of all charges for electricity,
gas, water and other utilities furnished to the Project, including any taxes
thereon; the cost of all charges for fire and extended coverage, liability and all
other insurance for the Project carried by Landlord; the cost of all

-5-

 

building and cleaning supplies and materials; the cost of all charges for
cleaning, maintenance and service contracts and other services with independent
contractors and administration fees; a commercially reasonable property management
fee (which fee may be imputed if Landlord has internalized management or otherwise
acts as its own property manager) and license, permit and inspection fees relating
to the Project. In the event, during any calendar year, the Project is less than
ninety-five percent (95%) occupied at all times, Operating Costs shall be adjusted
to reflect the Operating Costs of the Project as though ninety-five percent (95%)
were occupied at all times, and the increase or decrease in the sums owed hereunder
shall be based upon such Operating Costs as so adjusted. Notwithstanding anything to
the contrary set forth in this Article 3, when calculating Operating Costs for the
Base Year, Operating Costs shall exclude (a) market-wide labor-rate increases due to
extraordinary circumstances including, but not limited to, boycotts and strikes, (b)
utility rate increases due to extraordinary circumstances including, but not limited
to, conservation surcharges, boycotts, embargoes or other shortages, and (c)
amortization of any capital items including, but not limited to, capital
improvements, capital repairs and capital replacements (including such amortized
costs where the actual improvement, repair or replacement was made in prior years).
Notwithstanding the foregoing, Operating Costs do not include: (1) legal fees,
brokers’ commissions or other costs incurred in the negotiation, termination,
extension of leases, or expansion or contraction of premises under any leases, or in
proceedings involving a specific tenant, or in the creation of an encumbrance, or in
connection with a sale of the Project, including survey, legal fees and
disbursements, transfer stamps and appraisals, engineering and inspection reports
associated with the contemplated sale or encumbrance; (2) depreciation, except as
set forth above; (3) interest, except as set forth above; (4) capital items, except
as set forth above; (5) repairs or improvements paid for with the proceeds of any
insurance carried by Landlord (or which would have been paid had Landlord carried
the insurance required to be carried by Landlord under this Lease); (6) advertising
and promotional expenses incurred for the purpose of leasing space in the Project or
promoting patronage of the Project by invitees; (7) wages, salaries, reimbursable
expenses, benefit and other compensation of any personnel above the grade of the
general manager of the Project; (8) any expense for which Landlord is entitled to be
reimbursed by a tenant (including Tenant) as an additional charge in excess of base
rent and such tenant’s share of Operating Costs; (9) the cost of any special
services incurred for the benefit of one or more tenants of the Project and not
provided generally to all tenants of the Project; (10) penalties or late fees
incurred by Landlord; (11) the costs, expenses and fees of any asset manager,
investment or financial advisor, or investment banker, representing Landlord or any
partner or any other constituent member of Landlord; and (12) Landlord’s internal
overhead

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expenses, including the cost of internal accounting and the cost of preparation
of Landlord’s income tax or information returns. Operating Costs shall be “net” so
that they are reduced by the amount of all recoupments, discounts, credits,
reductions, allowances or the like actually received by Landlord from third parties,
on account of Operating Cost, except that Landlord may include in Operating Costs
the actual costs and expenses, if any, incurred by Landlord in obtaining such
recoupments, discounts, credits, reductions, allowances or the like. Subject to the
provisions of this definition, the determination of Operating Costs shall be made by
Landlord in accordance with generally accepted accounting principles and practices,
based-on the operating principles and practices of the Project, consistently
applied.

               (d) Determination of Payment.

          (i) if for any calendar year ending or commencing within the Term, Tenant’s
Proportionate Share of Direct Costs for such calendar year exceeds Tenant’s
Proportionate Share of Direct Costs for the Base Year, then Tenant shall pay to
Landlord, in the manner set forth in Sections 3(d)(ii) and (iii), below, and as
additional rent, an amount equal to the excess (the “Excess”).

          (ii) Landlord shall give Tenant a yearly expense estimate statement (the
“Estimate Statement”) which shall set forth Landlord’s reasonable estimate (the
“Estimate”) of what the total amount of Direct Costs for the then-current calendar
year shall be and the estimated Excess (the “Estimated Excess”) as calculated by
comparing Tenant’s Proportionate Share of Direct Costs for such calendar year, which
shall be based upon the Estimate, to Tenant’s Proportionate Share of Direct Costs
for the Base Year. The failure of Landlord to timely furnish the Estimate Statement
for any calendar year shall not preclude Landlord from enforcing its rights to
collect any Estimated Excess under this Article 3. If pursuant to the Estimate
Statement an Estimated Excess is calculated for the then-current calendar year,
Tenant shall pay, with its next installment of Monthly Basic Rental due, a fraction
of the Estimated Excess for the then-current calendar year (reduced by any amounts
paid pursuant to the last sentence of this Section 3(d)(ii)). Such fraction shall
have as its numerator the number of months which have elapsed in such current
calendar year to the month of such payment, both months inclusive, and shall have
twelve (12) as its denominator. Until a new Estimate Statement is furnished, Tenant
shall pay monthly, with the Monthly Basic Rental installments, an amount equal to
one-twelfth (1/12) of the total Estimated Excess set forth in the previous Estimate
Statement delivered by Landlord to Tenant.

          (iii) In addition, Landlord shall endeavor to give to

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Tenant on or before the first day of April following the end of each calendar
year, a statement (the “Statement”) which shall state the Direct Costs incurred or
accrued for such preceding calendar year, and which shall indicate the amount, if
any, of the Excess. Upon receipt of the Statement for each calendar year during the
Term, if amounts paid by Tenant as Estimated Excess are less than the actual Excess
as specified on the Statement, Tenant shall pay, with its next installment of
Monthly Basic Rental due, the full amount of the Excess for such calendar year,
less the amounts, if any, paid during such calendar year as Estimated Excess. If,
however, the Statement indicates that amounts paid by Tenant as Estimated Excess
are greater than the actual Excess as specified on the Statement, such overpayment
shall be credited against Tenant’s next installments of Estimated Excess. The
failure of Landlord to timely furnish the Statement for any calendar year shall not
prejudice Landlord from enforcing its rights under this Article 3. Even though the
Term has expired and Tenant has vacated the Premises, when the final determination
is made of Tenant’s Proportionate Share of the Direct Costs for the calendar year
in which this Lease terminates, if an Excess is present, Tenant shall immediately
pay to Landlord an amount as calculated pursuant to the provisions of this Article
3(d). The provisions of this Section 3(d)(iii) shall survive the expiration or
earlier termination of the Term.

          (iv) Within one hundred twenty (120) days after receipt of a Statement by
Tenant (“Review Period”), if Tenant disputes the amount set forth in the Statement,
Tenant’s employees or an independent certified public accountant (which accountant
is a member of a nationally or regionally recognized accounting firm), designated by
Tenant, may, after reasonable notice to Landlord and at reasonable times, inspect
Landlord’s records at Landlord’s offices, provided that Tenant is not then in
default after expiration of all applicable cure periods and provided further that
Tenant and such accountant or representative shall, and each of them shall use their
commercially reasonable efforts to cause their respective agents and employees to,
maintain all information contained in Landlord’s records in strict confidence.
Notwithstanding the foregoing, Tenant shall only have the right to review Landlord’s
records one (1) time during any twelve (12) month period. Tenant’s failure to
dispute the amounts set forth in any Statement within the Review Period shall be
deemed to be Tenant’s approval of such Statement and Tenant, thereafter, waives the
right or ability to dispute the amounts set forth in such Statement. If after such
inspection, but within thirty (30) days after the Review Period, Tenant notifies
Landlord in writing that Tenant still disputes such amounts, a certification as to
the proper amount shall be made, at Tenant’s expense, by an independent certified
public accountant selected by Landlord and who is a member of a nationally or
regionally recognized accounting

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firm. Landlord shall cooperate in good faith with Tenant and the accountant to
show Tenant and the accountant the information upon which the certification is to be
based. However, if such certification by the accountant proves that the Direct Costs
set forth in the Statement were overstated by more than five percent (5%), then the
cost of the accountant and the cost of such certification shall be paid for by
Landlord. Promptly following the parties receipt of such certification, the parties
shall make such appropriate payments or reimbursements, as the case may be, to each
other, as are determined to be owing pursuant to such certification.

     (v) If the Project is a part of a multi-building development, those Direct
Costs attributable to such development as a whole (and not attributable solely to
any individual building therein) shall be allocated by Landlord to the Project and
to the other buildings within such development on an equitable basis.

ARTICLE 4

SECURITY DEPOSIT

[Intentionally Deleted]

ARTICLE 5

HOLDING OVER

          Should Tenant, without Landlord’s written consent, hold over after termination of this Lease,
or hold over in Suite 1310 after the 2100 Commencement Date without Landlord’s written consent,
Tenant shall become a tenant from month to month (for that portion of the Premises in which Tenant
is holding over), only upon each arid all of the terms herein provided as may be applicable to a
month to month tenancy and any such holding over shall not constitute an extension of this Lease.
During such holding over, Tenant shall pay in advance, monthly, rent at one hundred fifty percent
(150%) of the rate in effect for the last month of the Term of this Lease, in addition to, and not
in lieu of, all other payments required to be made by Tenant hereunder including but not limited to
Tenant’s Proportionate Share of any increase in Direct Costs. Nothing contained in this Article 5
shall be construed as consent by Landlord to any holding over of the Premises by Tenant, and
Landlord expressly reserves the right to require Tenant to surrender possession of the Premises to
Landlord as provided in this Lease upon the expiration or earlier termination of the Term. If
Tenant fails to surrender the Premises upon the expiration or termination of this Lease, Tenant
agrees to indemnify, defend and hold Landlord harmless from all

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costs, loss, expense or liability, including without limitation, claims made by any succeeding
tenant and real estate brokers claims and attorneys’ fees.

ARTICLE 6

PERSONAL PROPERTY TAXES

          Tenant shall pay, prior to delinquency, all taxes assessed against or levied upon trade
fixtures furnishings, equipment and all other personal property of Tenant located in the Premises.
In the event any or all of Tenant’s trade fixtures, furnishings, equipment and other personal
property shall be assessed and taxed with property of Landlord, or if the cost or value of any
leasehold improvements in the Premises exceeds the cost or value of a Project-standard buildout as
determined by Landlord and, as a result, real property taxes for the Project are increased, Tenant
shall pay to Landlord its share of such taxes within thirty (30) days after delivery to Tenant by
Landlord of a statement in writing setting forth the amount of such taxes applicable to Tenant’s
property or above-standard improvements. In no event shall Tenant be obligated to pay, as an
Operating Cost, the value of any other tenants’ improvements in the buildings that are separately
assessed to the extent the value or cost exceeds Project-standard buildout. Tenant shall assume and
pay to Landlord at the time of paying Basic Rental, any excise, sales, use, rent, occupancy,
garage, parking, gross receipts or other taxes (other than net income taxes) which may be imposed
on or on account of letting of the Premises or the payment of Basic Rental or any other sums due or
payable hereunder, and which Landlord may be required to pay or collect under any law now in effect
or hereafter enacted. Tenant shall pay directly to the party or entity entitled thereto all
business license fees, gross receipts taxes and similar taxes and impositions which may from time
to time be assessed against or levied upon Tenant, as and when the same become due and before
delinquency. Notwithstanding anything to the contrary contained herein, any sums payable by Tenant
under this Article 6 shall not be included in the computation of “Tax Costs.”

ARTICLE 7

USE

          Tenant shall use and occupy the Premises only for the use set forth in Article l.G. of the
Basic Lease Provisions and shall not use or occupy the Premises or permit the same to be used or
occupied for any other purpose without the prior written consent of Landlord, which consent may be
given or withheld in Landlord’s reasonable discretion, and Tenant agrees that it will use the
Premises in such a manner so as not to interfere with or infringe the rights of other tenants in
the Project. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes,
ordinances and governmental regulations or requirements now in force or which may hereafter be in
force relating to or affecting (i) the condition, use or occupancy of the Premises or the Project,
excluding structural changes to the Project not related to Tenant’s particular use of the Premises,
and (ii) improvements installed or constructed in the Premises by

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or for the benefit of Tenant. Tenant shall not do or permit to be done anything which would
invalidate or increase the cost of any fire and extended coverage insurance policy covering the
Project and/or the property located therein and Tenant shall comply with all rules, orders,
regulations and requirements of any organization which sets out standards, requirements or
recommendations commonly referred to by major fire insurance underwriters. Tenant shall promptly,
upon demand, reimburse Landlord for any additional premium charges for any such insurance policy
assessed or increased by reason of Tenant’s failure to comply with the provisions of this Article.

ARTICLE 8

CONDITION OF PREMISES

          Tenant hereby agrees that the Premises shall be taken “as is”, “with all faults”, “without any
representations or warranties”, and Tenant hereby agrees and warrants that it has investigated and
inspected the condition of the Premises and the suitability of same for Tenant’s purposes, and
Tenant does hereby waive and disclaim any objection to, cause of action based upon, or claim that
its obligations hereunder should be reduced or limited because of the condition of the Premises or
the Project or the suitability of same for Tenant’s purposes. Tenant acknowledges that neither
Landlord nor any agent nor any employee of Landlord has made any representation or warranty with
respect to the Premises or the Project or with respect to the suitability of either for the conduct
of Tenant’s business and Tenant expressly warrants and represents that Tenant has relied solely on
its own investigation and inspection of the Premises and the Project in its decision to enter into
this Lease and let the Premises in an “As Is” condition. Suite 2100 shall be initially improved as
provided in, and subject to, the Tenant Work Letter attached hereto as Exhibit “D” and made a part
hereof. The existing leasehold improvements in the Premises as of the date of this Lease, together
with the Improvements (as defined in the Tenant Work Letter) may collectively be referred to herein
as the “Tenant Improvements.” The taking of possession of the Premises by Tenant shall conclusively
establish that the Premises and the Project were at such time in satisfactory condition. Tenant
hereby waives Sections 1941 and 1942 of the Civil Code of California or any successor provision of
law.

          Landlord reserves the right from time to time, but subject to payment by and/or reimbursement
from Tenant as otherwise provided herein: (i) to install, use, maintain, repair, replace and
relocate for service to the Premises and/or other parts of the Project pipes, ducts, conduits,
wires, appurtenant fixtures, and mechanical systems, wherever located in the Premises or the
Project, (ii) to alter, close or relocate any facility in the Premises or the Common Areas or
otherwise conduct any of the above activities for the purpose of complying with a general plan for
fire/life safety for the Project or otherwise and (iii) to comply with any federal, state or local
law, rule or order with respect thereto or the regulation thereof not currently in effect. Landlord
shall attempt to perform any such work with the least inconvenience to Tenant as possible, but in
no event shall Tenant be permitted to withhold or reduce Basic Rental

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or other charges due hereunder as a result of same or otherwise make claim against Landlord
for interruption or interference with Tenant’s business and/or operations.

ARTICLE
9

REPAIRS AND ALTERATIONS

          Landlord shall maintain the structural portions of the Project including the foundation,
floor/ceiling slabs, roof, curtain wall, exterior glass, columns, beams, shafts, stairs,
stairwells, elevator cabs and common areas and shall also maintain and repair the basic mechanical,
electrical, life safety, plumbing, sprinkler systems and heating, ventilating and air-conditioning
systems (provided, however, that Landlord’s obligation with respect to any such systems shall be to
repair and maintain those portions of the systems located in the core of the Project or in other
areas outside of the Premises, but Tenant shall be responsible to repair and maintain any
distribution of such systems throughout the Premises). Except as expressly provided as Landlord’s
obligation in this Article 9, Tenant shall keep the Premises in good condition and repair. Subject
to the provisions of Article 14, all damage or injury to the Premises or the Project resulting from
the act or negligence of Tenant, its employees, agents or visitors, guests, invitees or licensees
or by the use of the Premises shall be promptly repaired by Tenant, at its sole cost and expense,
to the satisfaction of Landlord; provided, however, that for damage to the Project as a result of
casualty or for any repairs that may impact the mechanical, electrical, plumbing, heating,
ventilation or air-conditioning systems of the Project, Landlord shall have the right (but not the
obligation) to select the contractor and oversee all such repairs. Landlord may make any repairs
which are not promptly made by Tenant after Tenant’s receipt of written notice and the reasonable
opportunity of Tenant to make said repair within ten (10) business days from receipt of said
written notice, and charge Tenant for the cost thereof, which cost shall be paid by Tenant within
thirty (30) days from invoice from Landlord. Tenant shall be responsible for the design and
function of all nonstandard improvements of the Premises, whether or not installed by Landlord at
Tenant’s request. Tenant waives all rights to make repairs at the expense of Landlord, or to deduct
the cost thereof from the rent. Tenant shall make no alterations, changes or additions in or to the
Premises (collectively, “Alterations”) without Landlord’s prior written consent, and then only by
contractors or mechanics approved by Landlord in writing and upon the approval by Landlord in
writing of fully detailed and dimensioned plans and specifications pertaining to the Alterations in
question, to be prepared and submitted by Tenant at its sole cost and expense. Tenant shall at its
sole cost and expense obtain all necessary approvals and permits pertaining to any Alterations
approved by Landlord. If Landlord, in approving any Alterations, specifies a commencement date
therefor, Tenant shall not commence any work with respect to such Alterations prior to such date.
Tenant hereby indemnifies, defends and agrees to hold Landlord free and harmless from all liens and
claims of lien, and all other liability, claims and demands arising out of any work done or
material supplied to the Premises by or at the request of Tenant in connection with any
Alterations. If permitted Alterations are made, they shall be made at Tenant’s sole

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cost and expense and shall be and become the property of Landlord, except that Landlord may,
by written notice to Tenant given at the time the Alterations are approved, require Tenant at
Tenant’s expense to remove all partitions, counters, railings and other Alterations installed by
Tenant, and to repair any damages to the Premises caused by such removal. Any and all costs
attributable to or related to the applicable building codes of the city in which the Project is
located (or any other authority having jurisdiction over the Project) arising from Tenant’s plans,
specifications, improvements, alterations or otherwise shall be paid by Tenant at its sole cost and
expense. With regard to repairs, Alterations or any other work arising from or related to this
Article 9, Landlord shall be entitled to receive an administrative/supervision fee (which fee shall
vary depending upon whether or not Tenant orders the work directly from Landlord) sufficient to
compensate Landlord for all overhead, general conditions, fees and other costs and expenses arising
from Landlord’s involvement with such work. The construction of initial improvements to Suite 2100
shall be governed by the terms of the Tenant Work Letter and not the terms of this Article 9.

ARTICLE 10

LIENS

     Tenant shall keep the Premises and the Project free from any mechanics’ liens, vendors’ liens
or any other liens arising out of any work performed, materials furnished or obligations incurred
by Tenant, and agrees to defend, indemnify and hold harmless Landlord from and against any such
lien or claim or action thereon, together with costs of suit and reasonable attorneys’ fees
incurred by Landlord in connection with any such claim or action. Before commencing any work of
alteration, addition or improvement to the Premises, Tenant shall give Landlord at least ten (10)
business days’ written notice of the proposed commencement of such work (to afford Landlord an
opportunity to post appropriate notices of non-responsibility). In the event that there shall be
recorded against the Premises or the Project or the property of which the Premises is a part any
claim or lien arising out of any such work performed, materials furnished or obligations incurred
by Tenant and such claim or lien shall not be removed, discharged or bonded over within ten (10)
days of filing, Landlord shall have the right but not the obligation to pay and discharge said lien
without regard to whether such lien shall be lawful or correct or to require that Tenant deposit
with Landlord in cash, lawful money of the United States, one hundred fifty percent (150%) of the
amount of such claim, which sum may be retained by Landlord until such claim shall have been
removed of record or until judgment shall have been rendered on such claim and such judgment shall
have become final, at which time Landlord shall have the right to apply such deposit in discharge
of the judgment on any claim and any costs, including attorneys’ fees incurred by Landlord, and
shall remit the balance thereof to Tenant.

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ARTICLE 11

PROJECT SERVICES

          (a) Landlord agrees to furnish to the Premises, at a cost to be included in Operating
Costs, from 7:00 a.m. to 6:00 p.m. Mondays through Fridays, excepting local and national
holidays, air conditioning and heat, all in such reasonable quantities as in the judgment of
Landlord is reasonably necessary for the comfortable occupancy of the Premises. In addition,
Landlord shall provide electric current for normal lighting and normal office machines,
elevator service and water on the same floor as the Premises for lavatory and drinking
purposes in such reasonable quantities as in the judgment of Landlord is reasonably
necessary for general office use. Janitorial and maintenance services shall be furnished
five (5) days per week, excepting local and national holidays. Tenant shall comply with all
rules and regulations which Landlord may reasonably establish for the proper functioning and
protection of the common area air conditioning, heating, elevator, electrical intrabuilding
network cable and plumbing systems. Landlord shall not be liable for, and there shall be no
rent abatement as a result of, any stoppage, reduction or interruption of any such services
caused by governmental rules, regulations or ordinances, riot, strike, labor disputes,
breakdowns, accidents, necessary repairs or other cause unless such stoppage, reduction or
interruption continues for more than ten (10) consecutive business days and Tenant’s use of
the Premises is materially interrupted, in which case all rent payable hereunder shall abate
thereafter in proportion to the portion of the Premises actually affected, until such
interruption is cured. Except as specifically provided in this Article 11, Tenant agrees to
pay for all utilities and other services utilized by Tenant and additional building services
furnished to Tenant not uniformly furnished to all tenants of the Project at the rate
generally charged by Landlord to tenants of the Project.

          (b) Tenant will not, without the prior written consent of Landlord, use any apparatus
or device in the Premises which will in any way increase the amount of electricity or water
usually furnished or supplied for use of the Premises as general office space; nor connect
any apparatus, machine or device with water pipes or electric current (except through
existing electrical outlets in the Premises), for the purpose of using electric current or
water.

          (c) If Tenant shall require electric current in excess of that which Landlord is
obligated to furnish under Article 11 (a) above, Tenant shall first obtain the written
consent of Landlord, which Landlord may refuse in its sole and absolute discretion, to the
use thereof and Landlord may cause an electric current meter or submeter to be installed in
the Premises to measure the amount of such excess electric current consumed by Tenant in the
Premises. The cost of any such meter and of installation, maintenance and repair thereof
shall be paid for by Tenant and Tenant agrees to pay to Landlord, promptly upon demand
therefor by Landlord, for all such excess electric current consumed by any such use as shown
by said meter at the rates charged for such

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service by the city in which the Project is located or the local public utility, as the
case may be, furnishing the same, plus any additional expense incurred by Landlord in
keeping account of the electric current so consumed.

          (d) If any lights, machines or equipment (including but not limited to computers) are
used by Tenant in the Premises which materially affect the temperature otherwise maintained
by the air conditioning system, or generate substantially more heat in the Premises than
would be generated by the building standard lights and usual office equipment, Landlord
shall have the right to install any machinery and equipment which Landlord reasonably deems
necessary to restore temperature balance, including but not limited to modifications to the
standard air conditioning equipment, and the cost thereof, including the cost of
installation and any additional cost of operation and maintenance occasioned thereby, shall
be paid by Tenant to Landlord upon demand by Landlord. Landlord shall not be liable under
any circumstances for loss of or injury to property, however occurring, through or in
connection with or incidental to failure to furnish any of the foregoing.

          (e) If Tenant requires heating, ventilation and/or air conditioning during times other
than the times provided in Article 1 l(a) above, Tenant shall give Landlord such advance
notice as Landlord shall reasonably require and shall pay Landlord’s standard charge for
such after-hours use, which is currently $100.00 per hour per tenant for HVAC and $20.00 per
hour per tenant for fans only.

          (f) Landlord may impose a reasonable charge for any utilities or services (other than
electric current and heating, ventilation and/or air conditioning which shall be governed by
Articles 1 l(c) and (e) above) utilized by Tenant in excess of the amount or type that
Landlord reasonably determines is typical for general office use.

ARTICLE 12

RIGHTS OF LANDLORD

          Landlord and its agents shall have the right to enter the Premises at all reasonable times for
the purpose of cleaning the Premises, examining or inspecting the same, serving or posting and
keeping posted thereon notices as provided by law, or which Landlord deems necessary for the
protection of Landlord or the Property, showing the same to prospective tenants, lenders or
purchasers of the Project, in the case of an emergency, and for making such alterations, repairs,
improvements or additions to the Premises or to the Project as Landlord may deem necessary or
desirable, in each case, other than emergencies, upon reasonable prior written notice. If Tenant
shall not be personally present to open and permit an entry into the Premises at any time when such
an entry by Landlord is necessary or permitted hereunder, Landlord may enter by means of a master
key or may enter forcibly, only in the case of

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an emergency, without liability to Tenant and without affecting this Lease.

ARTICLE 13

INDEMNITY; EXEMPTION OF LANDLORD FROM LIABILITY

          (a) Indemnity. Tenant shall indemnify, defend and hold Landlord harmless from
any and all claims arising from Tenant’s use of the Premises or the Project or from the
conduct of its business or from any activity, work or thing which may be permitted or
suffered by Tenant in or about the Premises or the Project and shall further indemnify,
defend and hold Landlord harmless from and against any and all claims arising from any
breach or default in the performance of any obligation on Tenant’s part to be performed
under this Lease or arising from any negligence of Tenant or any of its agents,
contractors, employees or invitees, patrons, customers or members in or about the Project
and from any and all costs, attorneys’ fees, expenses and Liabilities incurred in the
defense of any claim or any action or proceeding brought thereon, including negotiations in
connection therewith. Tenant hereby assumes all risk of damage to property or injury to
persons in or about the Premises from any cause, and Tenant hereby waives all claims in
respect thereof against Landlord, excepting where the damage is caused solely by the gross
negligence or willful misconduct of Landlord.

          (b) Exemption of Landlord from Liability. Landlord shall not be liable for
injury to Tenant’s business, or loss of income therefrom, or, except in connection with
damage or injury resulting from the gross negligence or willful misconduct of Landlord, or
its authorized agents, for damage that may be sustained by the person, goods, wares,
merchandise or property of Tenant, its employees, invitees, customers, agents, or
contractors, or any other person in, on or about the Premises directly or indirectly caused
by or resulting from fire, steam, electricity, gas, water, or rain which may leak or flow
from or into any part of the Premises, or from the breakage, leakage, obstruction or other
defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning, light
fixtures, or mechanical or electrical systems or from intrabuilding network cable, whether
such damage or injury results from conditions arising upon the Premises or upon other
portions of the Project or from other sources or places and regardless of whether the cause
of such damage or injury or the means or repairing the same is inaccessible to Tenant.
Landlord shall not be liable to Tenant for any damages arising from any act or neglect of
any other tenant of the building.

          Tenant acknowledges that Landlord’s election to provide mechanical surveillance or to post
security personnel in the Project is solely within Landlord’s discretion; Landlord shall have no
liability in connection with the decision whether or not to provide such services and Tenant hereby
waives all claims based thereon. Landlord shall not be liable for losses due to theft, vandalism,
or like causes. Tenant shall defend, indemnify, and hold Landlord harmless from any such claims
made by

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any employee, licensee, invitee, contractor, agent or, other person whose presence in, on or
about the Premises or the Project is attendant to the business of Tenant.

ARTICLE 14

INSURANCE

          (a) Tenant’s Insurance. Tenant, shall at all times during the Term of this
Lease, and at its own cost and expense, procure and continue in force the following
insurance coverage: (i) Commercial General Liability Insurance with a combined single limit
for bodily injury and property damages of not less than Two Million Dollars ($2,000,000)
per occurrence and Three Million Dollars ($3,000,000) in the annual aggregate, including
products liability coverage if applicable, covering the insuring provisions of this Lease
and the performance of Tenant of the indemnity and exemption of Landlord from liability
agreements set forth in Article 13 hereof; (ii) a policy of standard fire, extended
coverage and special extended coverage insurance (all risks), including a vandalism and
malicious mischief endorsement, sprinkler leakage coverage and earthquake sprinkler leakage
where sprinklers are provided in an amount equal to the full replacement value new without
deduction for depreciation of all (A) Tenant Improvements, Alterations, fixtures and other
improvements in the Premises and (B) trade fixtures, furniture, equipment and other
personal property installed by or at the expense of Tenant; (iii) Worker’s Compensation
coverage as required by law; and (iv) business interruption, loss of income and extra
expense insurance covering failure of Tenant’s telecommunications equipment and covering
all other perils, failures or interruptions, if commercially available. Tenant shall carry
and maintain during the entire Lease Term (including any option periods, if applicable), at
Tenant’s sole cost and expense, increased amounts of the insurance required to be carried
by Tenant pursuant to this Article 14 and such other reasonable types of insurance coverage
and in such reasonable amounts covering the Premises and Tenant’s operations therein, as
may be reasonably required by Landlord.

          (b) Form of Policies. The aforementioned minimum limits of policies and
Tenant’s procurement and maintenance thereof shall in no event limit the liability of Tenant
hereunder. The Commercial General Liability Insurance policy shall name Landlord, Landlord’s
property manager, Landlord’s lender(s) and such other persons or firms as Landlord specifies
from time to time, as additional insureds with an appropriate endorsement to the policy(s).
All such insurance policies carried by Tenant shall be with companies having a rating of not
less than A-VIII in Best’s Insurance Guide. Tenant shall furnish to Landlord, from the
insurance companies, or cause the insurance companies to furnish, certificates of coverage.
No such policy shall be cancelable or subject to reduction of coverage or other modification
or cancellation except after thirty (30) days prior written notice to Landlord by the
insurer. All such policies shall

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be endorsed to agree that Tenant’s policy is primary and that any insurance covered by
Landlord is excess and not contributing with any Tenant insurance requirement hereunder.
Tenant shall, at least twenty (20) days prior to the expiration of such policies, furnish
Landlord with renewals or binders. Tenant agrees that if Tenant does not take out and
maintain such insurance or furnish Landlord with renewals or binders, Landlord may (but
shall not be required to) procure said insurance on Tenant’s behalf and charge Tenant the
cost thereof, which amount shall be payable by Tenant upon demand with interest (at the rate
set forth in Section 20(e) below) from the date such sums are extended. Tenant shall have
the right to provide such insurance coverage pursuant to blanket policies obtained by
Tenant, provided such blanket policies expressly afford coverage to the Premises and to
Tenant as required by this Lease.

          (c) Landlord’s Insurance. Landlord shall, as a cost to be included in Operating
Costs, procure and maintain at all times during the Term of this Lease, a policy or policies
of insurance covering loss or damage to the Project in the amount of the full replacement
costs without deduction for depreciation thereof (exclusive of Tenant’s trade fixtures,
inventory, personal property and equipment), providing protection against all perils
included within the classification of fire and extended coverage, vandalism coverage and
malicious mischief, sprinkler leakage, water damage, and special extended coverage on
building. Additionally, Landlord may (but shall not be required to) carry: (i) Bodily Injury
and Property Damage Liability Insurance and/or Excess Liability Coverage Insurance; and (ii)
Earthquake and/or Flood Damage Insurance; and (iii) Rental Income Insurance at its election
or if required by its lender from time to time during the Term hereof, in such amounts and
with such limits as Landlord or its lender may deem appropriate. The costs of such insurance
shall be included in Operating Costs. In the event such insurance is not carried in the Base
Year, then the Base Year Operating Costs shall be adjusted upward at such time as Landlord
elects to carry such insurance by the cost of such insurance for the year in which it is
obtained.

          (d) Waiver of Subrogation. Landlord and Tenant each agree to have their
respective insurers issuing the insurance described in
Sections 14(a)(ii), 14(a)(iv) and the first sentence of Section 14(c) waive any rights of
subrogation that such companies may have against the other party. Tenant hereby waives any
right that Tenant may have against Landlord and Landlord hereby waives any right that
Landlord may have against Tenant as a result of any loss or damage to the extent such loss
or damage is insurable under such policies.

          (e) Compliance with Law. Tenant agrees that it will not, at any time, during
the Term of this Lease, carry any stock of goods or do anything in or about the Premises
that will in any way tend to increase the insurance rates upon the Project. Tenant agrees
to pay Landlord immediately upon demand the amount of any increase in premiums for
insurance against loss

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by fire that may be charged during the Term of this Lease on the amount of insurance
to be carried by Landlord on the Project resulting from the foregoing, or from Tenant doing
any act in or about said Premises that does so increase the insurance rates, whether or not
Landlord shall have consented to such act on the part of Tenant. If Tenant installs upon
the Premises any electrical equipment which constitutes an overload of electrical lines of
the Premises, Tenant shall at its own cost and expense in accordance with all other Lease
provisions, and subject to the provisions of Article 9, 10 and 11, hereof, make whatever
changes are necessary to comply with requirements of the insurance underwriters and any
governmental authority having jurisdiction thereover, but nothing herein contained shall be
deemed to constitute Landlord’s consent to such overloading. Tenant shall, at its own
expense, comply with all requirements of the insurance authority having jurisdiction over
the Project necessary for the maintenance of reasonable fire and extended coverage
insurance for the Premises, including without limitation thereto, the installation of fire
extinguishers or an automatic dry chemical extinguishing system.

ARTICLE 15

ASSIGNMENT AND SUBLETTING

          Tenant shall have no power to, either voluntarily, involuntarily, by operation of law or
otherwise, sell, assign, transfer or hypothecate this Lease, or sublet the Premises or any part
thereof, or permit the Premises or any part thereof to be used or occupied by anyone other than
Tenant or Tenant’s employees without the prior written consent of Landlord which shall not be
unreasonably withheld. If Tenant is a corporation, unincorporated association, partnership or
limited liability company, the sale, assignment, transfer or hypothecation of any class of stock or
other ownership interest in such corporation, association, partnership or limited liability company
in excess of twenty-five percent (25%) in the aggregate in one transaction or series of related
transactions shall be deemed an assignment within the meaning and provisions of this Article 15.
Tenant may transfer its interest pursuant to this Lease only upon the following express conditions,
which conditions are agreed by Landlord and Tenant to be reasonable:

          (a) That the proposed transferee shall be subject to the prior written consent of
Landlord, which consent will not be unreasonably withheld but, without limiting the
generality of the foregoing, it shall be reasonable for Landlord to deny such consent if:

          (i) The use to be made of the Premises by the proposed transferee is (a) not
generally consistent with the character and nature of all other tenancies in the
Project, or (b) a use which conflicts with any so-called “exclusive” then in favor
of, or for any use which is the same as that stated in any percentage rent lease to,
another tenant of the Project or any other buildings which are in the same complex
as the

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Project, or (c) a use which would be prohibited by any other portion of this
Lease (including, but not limited to, any Rules and Regulations then in effect);

          (ii) The financial responsibility of the proposed transferee is not
reasonably satisfactory to Landlord; or

          (iii) The proposed transferee is either a governmental agency or
instrumentality thereof.

          (b) Whether or not Landlord consents to any such transfer, Tenant shall pay to Landlord
Landlord’s then standard processing fee and reasonable attorneys’ fees incurred in
connection with the proposed transfer up to the aggregate sum of $1,500.00;

          (c) That the proposed transferee shall execute an agreement pursuant to which it shall
agree to perform faithfully and be bound by all of the terms, covenants, conditions,
provisions and agreements of this Lease applicable to that portion of the Premises so
transferred;

          (d) That an executed duplicate original of said assignment and assumption agreement or
other transfer on a form reasonably approved by Landlord, shall be delivered to Landlord
within five (5) days after the execution thereof, and that such transfer shall not be
binding upon Landlord until the delivery thereof to Landlord and the execution and delivery
of Landlord’s consent thereto. It shall be a condition to Landlord’s consent to any
subleasing, assignment or other transfer of part or all of Tenant’s interest in the Premises
(hereinafter referred to as a “Transfer”) that (i) upon Landlord’s consent to any Transfer,
Tenant shall pay and continue to pay fifty percent (50%) of any “Transfer Premium” (defined
below), received by Tenant from the transferee; (ii) any sublessee of part or all of
Tenant’s interest in the Premises shall agree that in the event Landlord gives such
sublessee notice that Tenant is in default under this Lease, such sublessee shall thereafter
make all sublease or other payments directly to Landlord, which will be received by Landlord
without any liability whether to honor the sublease or otherwise (except to credit such
payments against sums due under this Lease), and any sublessee shall agree to attorn to
Landlord or its successors and assigns at their request should this Lease be terminated for
any reason, except that in no event shall Landlord or its successors or assigns be obligated
to accept such attornment; (iii) any such Transfer and consent shall be effected on forms
supplied by Landlord and/or its legal counsel; (iv) Landlord may require that Tenant not
then be in default hereunder in any respect; and (v) Tenant or the proposed subtenant or
assignee (collectively, “Transferee”) shall agree to pay Landlord, upon demand, as
additional rent, a sum equal to the additional costs, if any, incurred by Landlord for
maintenance and repair as a result of any change in the nature of occupancy caused by such
subletting or assignment. “Transfer Premium” shall mean all

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rent, additional rent or other consideration payable by a Transferee in connection with
a Transfer in excess of the rent and Additional Rent payable by Tenant under this Lease
during the term of the Transfer and if such Transfer is less than all of the Premises, the
Transfer Premium shall be calculated on a rentable square foot basis. “Transfer Premium”
shall also include, but not be limited to, key money, bonus money or other cash
consideration paid by a transferee to Tenant in connection with such Transfer, and any
payment in excess of fair market value for services rendered by Tenant, to the Transferee
and any payment in excess of fair market value for assets, fixtures, inventory, equipment,
or furniture transferred by Tenant to the Transferee in connection with such Transfer. Prior
to calculating the Transfer Premium, Landlord shall first deduct the actual out-of-pocket
costs incurred by Tenant in reletting the Premises, including brokerage fees and attorneys’
fees paid to third party unaffiliated brokers and attorneys, and demising walls and new
tenant improvements. Any sale assignment, hypothecation, transfer or subletting of this
Lease which is not in compliance with the provisions of this Article 15 shall be void and
shall, at the option of Landlord, terminate this Lease. In no event shall the consent by
Landlord to an assignment or subletting be construed as relieving Tenant, any assignee, or
sublessee from obtaining the express written consent of Landlord to any further assignment
or subletting, or as releasing Tenant from any liability or obligation hereunder whether or
not then accrued and Tenant shall continue to be fully liable therefor: No collection or
acceptance of rent by Landlord from any person other than Tenant shall be deemed a waiver of
any provision of this Article 15 or the acceptance of any assignee or subtenant hereunder,
or a release of Tenant (or of any successor of Tenant or any subtenant). Notwithstanding
anything to the contrary in this Lease, if Tenant or any proposed Transferee claims that
Landlord has unreasonably withheld or delayed its consent under this Article 15 or otherwise
has breached or acted unreasonably under this Article 15, their sole remedies shall be a
declaratory judgment and an injunction for the relief sought without any monetary damages,
and Tenant hereby waives all other remedies, including, without limitation, any right at law
or equity to terminate this Lease, on its own behalf and, to the extent permitted under all
applicable laws, on behalf of the proposed Transferee.

          Notwithstanding anything to the contrary contained in this Article 15, Landlord shall have the
option, by giving written notice to Tenant within thirty (30) days after Landlord’s receipt of a
request for consent to a proposed Transfer, to terminate this Lease as to the portion of the
Premises that is the subject of the Transfer. If this Lease is so terminated with respect to less
than the entire Premises, the Basic Rental and Tenant’s Proportionate Share shall be prorated based
on the number of rentable square feet retained by Tenant as compared to the total number of
rentable square feet contained in the original Premises, and this Lease as so amended shall
continue thereafter in full force and effect, and upon the request of either party, the parties
shall execute written confirmation of the same.

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          (e) Notwithstanding anything to the contrary contained herein, Landlord’s consent shall
not be required in connection with any assignment in connection with a consolidation, merger
or purchase of substantially all of Tenant’s assets to a person or entity (A) whose
financial strength, both in terms of net worth and in terms of reasonably anticipated cash
flow over the Lease Term, is not materially less than Tenant’s financial strength at the
time of the execution of this Lease, or (B) who has provided such guaranties or other
security reasonably satisfactory to Landlord to guaranty the replacement tenant’s
performance under the Lease.

ARTICLE 16

DAMAGE OR DESTRUCTION

          If the Project is damaged by fire or other insured casualty and the insurance proceeds have
been made available therefor by the holder or holders of any mortgages or deeds of trust covering
the Premises or the Project, the damage shall be repaired by Landlord to the extent such insurance
proceeds are available therefor and provided such repairs can, in Landlord’s sole opinion, be
completed within two hundred seventy (270) days after the necessity for repairs as a result of such
damage becomes known to Landlord without the payment of overtime or other premiums, and until such
repairs are completed rent shall be abated in proportion to the part of the Premises which is
unusable by Tenant in the conduct of its business (but there shall be no abatement of rent by
reason of any portion of the Premises being unusable for a period equal to one (1) day or less).
Upon the occurrence of any damage to the Premises, Tenant shall assign to Landlord (or to any party
designated by Landlord) all insurance proceeds payable to Tenant under Section 14(a)(ii)(A) above;
provided, however, that if the cost of repair of improvements within the Premises by Landlord
exceeds the amount of insurance proceeds received by Landlord from Tenant’s insurance carrier, as
so assigned by Tenant, such excess costs shall be paid by Tenant to Landlord prior to Landlord’s
repair of such damage. If repairs cannot, in Landlord’s opinion, be completed within two hundred
seventy (270) days after the necessity for repairs as a result of such damage becomes known to
Landlord without the payment of overtime or other premiums, either party may, at its option, elect
to terminate this Lease by written notice to the other within thirty (30) days after Landlord’s
determination of the anticipated time needed to complete the repairs. In addition, Landlord may
elect to terminate this Lease if the Project shall be damaged by fire or other casualty or cause,
whether or not the Premises are affected, and the damage is not fully covered, except for
deductible amounts, by Landlord’s insurance policies. Finally, if the Premises or the Project is
damaged to any substantial extent during the last twelve (12) months of the Term, then
notwithstanding anything contained in this Article 16 to the contrary, either party shall have the
option to terminate this Lease by giving written notice to the other of the exercise of such option
within sixty (60) days after such party learns of the necessity for repairs as the result of such
damage. A total destruction of the Project shall automatically terminate this Lease. Except as
provided in this Article 16, there shall be no abatement of rent and no liability of Landlord by

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reason of any injury to or interference with Tenant’s business or property arising from such
damage or destruction or the making of any repairs, alterations or improvements in or to any
portion of the Project or the Premises or in or to fixtures, appurtenances and equipment therein.
Tenant understands that Landlord will not carry insurance of any kind on Tenant’s furniture,
furnishings, trade fixtures or equipment, and that Landlord shall not be obligated to repair any
damage thereto or replace the same. Except for proceeds relating to Tenant’s furniture,
furnishings, trade fixtures and equipment, Tenant acknowledges that Tenant shall have no right to
any proceeds of insurance relating to property damage. With respect to any damage which Landlord is
obligated to repair or elects to repair, Tenant, as a material inducement to Landlord entering into
this Lease, irrevocably waives and releases its rights under the provisions of Sections 1932 and
1933 of the California Civil Code.

ARTICLE 17

SUBORDINATION

          This Lease is subject and subordinate to all ground or underlying leases, mortgages and deeds
of trust which affect the property or the Project, including all renewals, modifications,
consolidations, replacements and extensions thereof; provided, however, if the lessor under any
such lease or the holder or holders of any such mortgage or deed of trust shall advise Landlord
that they desire or require this Lease to be prior and superior thereto, upon written request of
Landlord to Tenant, Tenant agrees to promptly execute, acknowledge and deliver any and all
documents or instruments which Landlord or such lessor, holder or holders deem necessary or
desirable for purposes thereof. Landlord shall have the right to cause this Lease to be and become
and remain subject and subordinate to any and all ground or underlying leases, mortgages or deeds
of trust which may hereafter be executed covering the Premises, the Project or the property or any
renewals, modifications, consolidations, replacements or extensions thereof, for the full amount of
all advances made or to be made thereunder and without regard to the time or character of such
advances, together with interest thereon and subject to all the terms and provisions thereof;
provided, however, that Landlord obtains from the lender or other party in question a written
undertaking in favor of Tenant to the effect that such lender or other party will not disturb
Tenant’s right of possession under this Lease if Tenant is not then or thereafter in breach of any
covenant or provision of this Lease. Tenant agrees, within ten (10) days after Landlord’s written
request therefor, to execute, acknowledge and deliver upon request any and all documents or
instruments requested by Landlord or necessary or proper to assure the subordination of this Lease
to any such mortgages, deeds of trust, or leasehold estates. Tenant agrees that in the event any
proceedings are brought for the foreclosure of any mortgage or deed of trust or any deed in lieu
thereof, to attorn to the purchaser or any successors thereto upon any such foreclosure sale or
deed in lieu thereof as so requested to do so by such purchaser and to recognize such purchaser as
the lessor under this Lease; Tenant shall, within five (5) days after request execute such further
instruments or assurances as such purchaser may reasonably deem necessary to evidence or confirm
such attornment. Tenant agrees to provide copies of

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any notices of Landlord’s default under this Lease to any mortgagee or deed of trust
beneficiary whose address has been provided to Tenant and Tenant shall provide such mortgagee or
deed of trust beneficiary a commercially reasonable time after receipt of such notice within which
to cure any such default. Tenant waives the provisions of any current or future statute, rule or
law which may give or purport to give Tenant any right or election to terminate or otherwise
adversely affect this Lease and the obligations of the Tenant hereunder in the event of any
foreclosure proceeding or sale.

ARTICLE 18

EMINENT DOMAIN

          If the whole of the Premises or the Project or so much thereof as to render the balance
unusable by Tenant shall be taken under power of eminent domain, or is sold, transferred or
conveyed in lieu thereof, this Lease shall automatically terminate as of the date of such
condemnation, or as of the date possession is taken by the condemning authority, at Landlord’s
option. No award for any partial or entire taking shall be apportioned, and Tenant hereby assigns
to Landlord any award which may be made in such taking or condemnation, together with any and all
rights of Tenant now or hereafter arising in or to the same or any part thereof; provided, however,
that nothing contained herein shall be deemed to give Landlord any interest in or to require Tenant
to assign to Landlord any award made to Tenant for the taking of personal property and trade
fixtures belonging to Tenant and removable by Tenant at the expiration of the Term hereof as
provided hereunder or for the interruption of, or damage to, Tenant’s business. In the event of a
partial taking described in this Article 18, or a sale, transfer or conveyance in lieu thereof,
which does not result in a termination of this Lease, the rent shall be apportioned according to
the ratio that the part of the Premises remaining useable by Tenant bears to the total area of the
Premises. Tenant hereby waives any and all rights it might otherwise have pursuant to Section
1265.130 of the California Code of Civil Procedure.

ARTICLE 19

DEFAULT

          Each of the following acts or omissions of Tenant or of any guarantor of Tenant’s performance
hereunder, or occurrences, shall constitute an “Event of Default”:

          (a) Failure or refusal to pay Basic Rental, Additional Rent or any other amount to be
paid by Tenant to Landlord hereunder within three (3) calendar days after notice that the
same is due or payable hereunder; said three (3) day period shall be in lieu of, and not in
addition to, the notice requirements of Section 1161 of the California Code of Civil
Procedure or any similar or successor law;

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          (b) Except as set forth in items (a) above and (c) through and including (g) below,
failure to perform or observe any other covenant or condition of this Lease to be performed
or observed within thirty (30) days following written notice to Tenant of such failure. Such
thirty (30) day notice shall be in lieu of, and not in addition to, any required under
Section 1161 of the California Code of Civil Procedure or any similar or successor law;

          (c) Abandonment or vacating or failure to accept tender of possession of the Premises
or any significant portion thereof;

          (d) The taking in execution or by similar process or law (other than by eminent domain)
of the estate hereby created;

          (e) The filing by Tenant or any guarantor hereunder in any court pursuant to any
statute of a petition in bankruptcy or insolvency or for reorganization or arrangement for
the appointment of a receiver of all or a portion of Tenant’s property; the filing against
Tenant or any guarantor hereunder of any such petition, or the commencement of a proceeding
for the appointment of a trustee, receiver or liquidator for Tenant, or for any guarantor
hereunder, or of any of the property of either, or a proceeding by any governmental
authority for the dissolution or liquidation of Tenant or any guarantor hereunder, if such
proceeding shall not be dismissed or trusteeship discontinued within thirty (30) days after
commencement of such proceeding or the appointment of such trustee or receiver; or the
making by Tenant or any guarantor hereunder of an assignment for the benefit of creditors.
Tenant hereby stipulates to the lifting of the automatic stay in effect and relief from such
stay for Landlord in the event Tenant files a petition under the United States Bankruptcy
laws, for the purpose of Landlord pursuing its rights and remedies against Tenant and/or a
guarantor of this Lease;

          (f) Tenant’s failure to cause to be released any mechanics liens filed against the
Premises or the Project within twenty (20) days after the date the same shall have been
filed or recorded; or

          (g) Tenant’s failure to observe or perform according to the provisions of Articles 17
or 25 within ten (10) business days after written notice from Landlord.

          All defaults by either party of any covenant or condition of this Lease shall be deemed by the
parties hereto to be material.

ARTICLE 20

REMEDIES

          (a) Upon the occurrence of an Event of Default under this

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Lease as provided in Article 19 hereof, Landlord may exercise all of its remedies as
may be permitted by law, including but not limited to the remedy provided by Section 1951.4
of the California Civil Code, and including without limitation, terminating this Lease,
reentering the Premises and removing all persons and property therefrom, which property may
be stored by Landlord at a warehouse or elsewhere at the risk, expense and for the account
of Tenant. If Landlord elects to terminate this Lease, Landlord shall be entitled to
recover from Tenant the aggregate of all amounts permitted by law, including but not
limited to (i) the worth at the time of award of the amount of any unpaid rent which had
been earned at the time of such termination; plus (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 Tenant proves could have been
reasonably avoided; plus (iii) the worth at the time of award of the amount by which the
unpaid rent for the balance of the Lease Term after the time of award exceeds the amount of
such rental loss that Tenant proves could have been reasonably avoided; plus (iv) any other
amount necessary to compensate Landlord for all the detriment proximately caused by
Tenant’s failure to perform its obligations under this Lease or which in the ordinary
course of things would be likely to result therefrom, specifically including but not
limited to, brokerage commissions and advertising expenses incurred, expenses of remodeling
the Premises or any portion thereof for a new tenant, whether for the same or a different
use, and any special concessions made to obtain a new tenant; and (v) at Landlord’s
election, such other amounts in addition to or in lieu of the foregoing as may be permitted
from time to time by applicable law. The term “rent” as used in this Article 20(a) shall be
deemed to be and to mean all sums of every nature required to be paid by Tenant pursuant to
the terms of this Lease, whether to Landlord or to others. As used in items (i) and (ii),
above, the “worth at the time of award” shall be computed by allowing interest at the rate
set forth in item (e), below, but in no case greater than the maximum amount of such
interest permitted by law. As used in item (iii), above, the “worth at the time of award”
shall be computed by discounting such amount at the discount rate of the Federal Reserve
Bank of San Francisco at the time of award plus one percent (1%).

          (b) Nothing in this Article 20 shall be deemed to affect Landlord’s right to
indemnification for liability or liabilities arising prior to the termination of this Lease
for personal injuries or property damage under the indemnification clause or clauses
contained in this Lease.

          (c) Notwithstanding anything to the contrary set forth herein, Landlord’s re-entry to
perform acts of maintenance or preservation of or in connection with efforts to relet the
Premises or any portion thereof, or the appointment of a receiver upon Landlord’s initiative
to protect Landlord’s interest under this Lease shall not terminate Tenant’s right to
possession of the Premises or any portion thereof and, until Landlord does elect to
terminate this Lease, this Lease shall continue in full force and effect and Landlord may

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enforce all of Landlord’s rights and remedies hereunder including, without limitation,
the remedy described in California Civil Code Section 1951.4 (lessor may continue lease in
effect after lessee’s breach and abandonment and recover rent as it becomes due, if lessee
has the right to sublet or assign, subject only to reasonable limitations). Accordingly, if
Landlord does not elect to terminate this Lease on account of any default by Tenant,
Landlord may, from time to time, without terminating this Lease, enforce all of its rights
and remedies under this Lease, including the right to recover all rent as it becomes due.

          (d) All rights, powers and remedies of Landlord hereunder and under any other agreement
now or hereafter in force between Landlord and Tenant shall be cumulative and not
alternative and shall be in addition to all rights, powers and remedies given to Landlord by
law, and the exercise of one or more rights or remedies shall not impair Landlord’s right to
exercise any other right or remedy.

          (e) Any amount due from Tenant to Landlord hereunder which is not paid when due shall
bear interest at the lower of eighteen percent (18%) per annum or the maximum lawful rate of
interest from the due date until paid, unless otherwise specifically provided herein, but
the payment of such interest shall not excuse or cure any default by Tenant under this
Lease. In addition to such interest: (i) if Basic Rental is not paid within ten (10) days
after receipt of written notice that the same is due, a late charge equal to ten percent
(10%) of the amount overdue or $100, whichever is greater, shall be assessed and shall
accrue for each calendar month or part thereof until such rental, including the late charge,
is paid in full, which late charge Tenant hereby agrees is a reasonable estimate of the
damages Landlord shall suffer as a result of Tenant’s late payment and (ii) an additional
charge of $25 shall be assessed for any check given to Landlord by or on behalf of Tenant
which is not honored by the drawee thereof; which damages include Landlord’s additional
administrative and other costs associated with such late payment and unsatisfied checks and
the parties agree that it would be impracticable or extremely difficult to fix Landlord’s
actual damage in such event. Such charges for interest and late payments and unsatisfied
checks are separate and cumulative and are in addition to and shall not diminish or
represent a substitute for any or all of Landlord’s rights or remedies under any other
provision of this Lease.

ARTICLE 21

TRANSFER OF LANDLORD’S INTEREST

          In the event of any transfer or termination of Landlord’s interest in the Premises or the
Project by sale, assignment, transfer, foreclosure, deed-in-lieu of foreclosure or otherwise,
whether voluntary or involuntary, Landlord shall be automatically relieved of any and all
obligations and liabilities on the part of Landlord from and after the date of such transfer or
termination, including furthermore without

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limitation, the obligation of Landlord under Article 4 and California Civil Code 1950.7,
above, to return the security deposit, provided said security deposit is transferred to said
transferee. Tenant agrees to attorn to the transferee upon any such transfer and to recognize such
transferee as the lessor under this Lease and Tenant shall, within five (5) days after request,
execute such further instruments or assurances as such transferee may reasonably deem necessary to
evidence or confirm such attornment.

ARTICLE 22

BROKER

          In connection with this Lease, each party warrants and represents that it has had dealings
only with firm(s) set forth in Article l.H. of the Basic Lease Provisions and that it knows of no
other person or entity who is or might be entitled to a commission, finder’s fee or other like
payment in connection herewith and does hereby indemnify and agree to hold the other, its agents,
members, partners, representatives, officers, affiliates, shareholders, employees, successors and
assigns harmless from and against any and all loss, liability and expenses that it may incur should
such warranty and representation prove incorrect, inaccurate or false.

ARTICLE 23

PARKING

          If provided for in Article 1 of this Lease, Tenant shall rent from Landlord, commencing on the
Commencement Date, the number of unreserved parking passes set forth in Article 1 of this Lease,
which parking passes shall pertain to the Project parking facility. Tenant shall pay to Landlord
for automobile parking passes the prevailing rate charged from time to time at the location of such
parking passes. In addition, Tenant shall be responsible for the full amount of any taxes imposed
by any governmental authority in connection with the renting of such parking passes by Tenant or
the use of the parking facility by Tenant. Tenant’s continued right to use the parking passes is
conditioned upon Tenant abiding by all rules and regulations which are prescribed from time to time
for the orderly operation and use of the parking facility where the parking passes are located,
including any sticker or other identification system established by Landlord, Tenant’s cooperation
in seeing that Tenant’s employees and visitors also comply with such rules and regulations, and
Tenant not being in default under this Lease. Landlord specifically reserves the right to change
the size, configuration, design, layout and all other aspects of the Project parking facility at
any time and Tenant acknowledges and agrees that Landlord may, without incurring any liability to
Tenant and without any abatement of rent under this Lease, from time to time, close-off or restrict
access to the Project parking facility for purposes of permitting or facilitating any such
construction, alteration or improvements. Landlord may delegate its responsibilities hereunder to a
parking operator or a lessee of the parking facility in which case such parking operator or

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lessee shall have all the rights of control attributed hereby to the Landlord. The parking
passes rented by Tenant pursuant to this Article 23 are provided to Tenant solely for use by
Tenant’s own personnel and such passes may not be transferred, assigned, subleased or otherwise
alienated by Tenant without Landlord’s prior approval. Tenant may validate visitor parking by such
method or methods as the Landlord may establish, at the validation rate from time to time generally
applicable to visitor parking.

ARTICLE 24

WAIVER

          No waiver by Landlord of any provision of this Lease shall be deemed to be a waiver of any
other provision hereof or of any subsequent breach by Tenant of the same or any other provision. No
provision of this Lease may be waived by Landlord, except by an instrument in writing executed by
Landlord. Landlord’s consent to or approval of any act by Tenant requiring Landlord’s consent or
approval shall not be deemed to render unnecessary the obtaining of Landlord’s consent to or
approval of any subsequent act of Tenant, whether or not similar to the act so consented to or
approved. No act or thing done by Landlord or Landlord’s agents during the Term of this Lease shall
be deemed an acceptance of a surrender of the Premises, and no agreement to accept such surrender
shall be valid unless in writing and signed by Landlord. Any payment by Tenant or receipt by
Landlord of an amount less than the total amount then due hereunder shall be deemed to be in
partial payment only thereof and not a waiver of the balance due or an accord and satisfaction,
notwithstanding any statement or endorsement to the contrary on any check or any other instrument
delivered concurrently therewith or in reference thereto. Accordingly, Landlord may accept any such
amount and negotiate any such check without prejudice to Landlord’s right to recover all balances
due and owing and to pursue its other rights against Tenant under this Lease, regardless of whether
Landlord makes any notation on such instrument of payment or otherwise notifies Tenant that such
acceptance or negotiation is without prejudice to Landlord’s rights.

ARTICLE 25

ESTOPPEL CERTIFICATE

          Tenant shall, at any time and from time to time, upon not less than ten business (10) days’
prior written notice from Landlord, execute, acknowledge and deliver to Landlord a statement in
writing certifying the following information, (but not limited to the following information in the
event further information is requested by Landlord): (i) that this Lease is unmodified and in full
force and effect (or, if modified, stating the nature of such modification and certifying that this
Lease, as modified, is in full force and effect); (ii) the dates to which the rental and other
charges are paid in advance, if any; (iii) the amount of Tenant’s security deposit, if any; and
(iv) acknowledging that there are not, to Tenant’s knowledge, any uncured defaults on the part of
Landlord hereunder, and no events or conditions then in existence which,

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with the passage of time or notice or both, would constitute a default on the part of Landlord
hereunder, or specifying such defaults, events or conditions, if any are claimed. It is expressly
understood and agreed that any such statement may be relied upon by any prospective purchaser or
encumbrancer of all or any portion of the Real Property. Tenant’s failure to deliver such statement
within such time shall constitute an admission by Tenant that all statements contained therein are
true and correct. Tenant agrees to execute all documents required in accordance with this Article
25 within ten (10) business days after delivery of said documents.

ARTICLE 26

LIABILITY OF LANDLORD

          Notwithstanding anything in this Lease to the contrary, any remedy of Tenant for the
collection of a judgment (or other judicial process) requiring the payment of money by Landlord in
the event of any default by Landlord hereunder or any claim, cause of action or obligation,
contractual, statutory or otherwise by Tenant against Landlord concerning, arising out of or
relating to any matter relating to this Lease and all of the covenants and conditions or any
obligations, contractual, statutory, or otherwise set forth herein, shall be limited solely and
exclusively to an amount which is equal to the lesser of (i) the interest of Landlord in and to the
Project, and (ii) the interest Landlord would have in the Project if the Project were encumbered by
third party debt in an amount equal to ninety percent (90%) of the then current value of the
Project (as such value is reasonably determined by Landlord). No other property or assets of
Landlord, or any member, officer, director, shareholder, partner, trustee, agent, servant or
employee of Landlord (the “Representative”) shall be subject to levy, execution or other
enforcement procedure for the satisfaction of Tenant’s remedies under or with respect to this
Lease, Landlord’s obligations to Tenant, whether contractual, statutory or otherwise, the
relationship of Landlord and Tenant hereunder, or Tenant’s use or occupancy of the Premises. Tenant
further understands that any liability, duty or obligation of Landlord to Tenant, shall
automatically cease and terminate as of the date that Landlord or any of Landlord’s Representatives
no longer have any right, title or interest in or to the Project.

ARTICLE 27

INABILITY TO PERFORM

          This Lease and the obligations of Landlord and Tenant hereunder shall not be affected or
impaired because Landlord or Tenant is unable to fulfill any of its obligations hereunder or is
delayed in doing so, if such inability or delay is caused by reason of any prevention, delay,
stoppage due to strikes, lockouts, acts of God, or any other cause previously, or at such time,
beyond the reasonable control or anticipation of Landlord or Tenant, as applicable (collectively, a
“Force Majeure”) and such party’s obligations under this Lease shall be forgiven and suspended by
any such Force Majeure. Notwithstanding the foregoing, Tenant’s obligations to pay Basic Rent,

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Additional Rent or any other amount to be paid by Tenant to Landlord shall not be forgiven or
suspended as a result of any such Force Majeure.

ARTICLE 28

HAZARDOUS WASTE

          (a) Tenant shall not cause or permit any Hazardous Material (as defined in Article
28(d), below) to be brought, kept or used in or about the Project by Tenant, its agents,
employees, contractors, or invitees. Tenant indemnifies Landlord from and against any breach
by Tenant of the obligations stated in the preceding sentence, and agrees to defend and hold
Landlord harmless from and against any and all claims, judgments, damages, penalties, fines,
costs, liabilities, or losses (including, without limitation, diminution in value of the
Project, damages for the loss or restriction or use of rentable or usable space or of any
amenity of the Project, damages arising from any adverse impact or marketing of space in the
Project, and sums paid in settlement of claims, attorneys’ fees, consultant fees, and expert
fees) which arise during or after the Term of this Lease as a result of such breach. This
indemnification of Landlord by Tenant includes, without limitation, costs incurred in
connection with any investigation of site conditions or any cleanup, remedial, removal, or
restoration work required by any federal, state, or local governmental agency or political
subdivision because of Hazardous Material present in the soil or ground water on or under
the Project. Without limiting the foregoing, if the presence of any Hazardous Material on
the Project caused or permitted by Tenant results in any contamination of the Project and
subject to the provisions of Articles 9, 10 and 11, hereof, Tenant shall promptly take all
actions at its sole expense as are necessary to return the Project to the condition existing
prior to the introduction of any such Hazardous Material and the contractors to be used by
Tenant for such work must be approved by Landlord, which approval shall not be unreasonably
withheld so long as such actions would not potentially have any material adverse long-term
or short-term effect on the Project and so long as such actions do not materially interfere
with the use and enjoyment of the Project by the other tenants thereof.

          (b) Landlord and Tenant acknowledge that Landlord may become legally liable for the
costs of complying with Laws (as defined in Article 28(e), below) relating to Hazardous
Material which are not the responsibility of Landlord or the responsibility of Tenant,
including the following: (i) Hazardous Material present in the soil or ground water on the
Project of which Landlord has no knowledge as of the effective date of this Lease; (ii) a
change in Laws which relate to Hazardous Material which make that Hazardous Material which
is present on the Real Property as of the effective date of this Lease, whether known or
unknown to Landlord, a violation of such new Laws; (iii) Hazardous Material that migrates,
flows, percolates, diffuses, or in any way moves on to, or under, the Project after the

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effective date of this Lease; or Hazardous Material present on or under the Project as
a result of any discharge, dumping or spilling (whether accidental or otherwise) on the
Project by other lessees of the Project or their agents, employees, contractors, or
invitees, or by others. Accordingly, Landlord and Tenant agree that the cost of complying
with Laws relating to Hazardous Material on the Project for which Landlord is legally liable
and which are paid or incurred by Landlord shall be an Operating Cost (and Tenant shall pay
Tenant’s Proportionate Share thereof in accordance with Article 3) unless the cost of such
compliance as between Landlord and Tenant, is made the responsibility of Tenant pursuant to
Article 28(a), above. To the extent any such Operating Cost relating to Hazardous Material
is subsequently recovered or reimbursed through insurance, or recovery from responsible
third parties or other action, Tenant shall be entitled to a proportionate reimbursement to
the extent it has paid its share of such Operating Cost to which such recovery or
reimbursement relates.

          (c) It shall not be unreasonable for Landlord to withhold its consent to any proposed
Transfer if (i) the proposed transferee’s anticipated use of the Premises involves the
generation, storage, use, treatment, or disposal of Hazardous Material; (ii) the proposed
Transferee has been required by any prior landlord, lender, or governmental authority to
take remedial action in connection with Hazardous Material contaminating a property if the
contamination resulted from such Transferee’s actions or use of the property in question; or
(iii) the proposed Transferee is subject to an enforcement order issued by any governmental
authority in connection with the use, disposal, or storage of a Hazardous Material.

          (d) As used herein, the term “Hazardous Material” means any hazardous or toxic
substance, material, or waste which is or becomes regulated by any local governmental
authority, the State of California or the United States Government. The term “Hazardous
Material” includes, without limitation, any material or substance which is (i) defined as
“Hazardous Waste,” “Extremely Hazardous Waste,” or “Restricted Hazardous Waste” under
Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140, of the California
Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined
as a “Hazardous Substance” under Section 253-16 of the California Health and Safety Code,
Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii)
defined as a “Hazardous Material,” “Hazardous Substance,” or “Hazardous Waste” under Section
25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous
Materials Release Response Plans and Inventory), (iv) defined as a “Hazardous Substance”
under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7
(Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) listed
under Article 9 or defined as Hazardous or extremely hazardous pursuant to Article 11 of
Title 22 of the California Administrative Code, Division 4, Chapter 20, (viii) designated as
a

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“Hazardous Substance” pursuant to Section 311 of the Federal Water Pollution Control
Act (33 U.S.C. § 1317), (ix) defined as a “Hazardous Waste” pursuant to Section 1004 of the
Federal Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq. (42 U.S.C. § 6903),
or (x) defined as a “Hazardous Substance” pursuant to Section 101 of the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq. (42 U.S.C.
§9601).

          (e) As used herein, the term “Laws” mean any applicable federal, state or local laws,
ordinances, or regulations relating to any Hazardous Material affecting the Project,
including, without limitation, the laws, ordinances, and regulations referred to in Article
28(d), above.

ARTICLE 29

SURRENDER OF PREMISES: REMOVAL OF PROPERTY

          (a) The voluntary or other surrender of this Lease by Tenant to Landlord, or a mutual
termination hereof, shall not work a merger, and shall at the option of Landlord, operate as
an assignment to it of any or all subleases or subtenancies affecting the Premises.

          (b) Upon the expiration of the Term of this Lease, or upon any earlier termination of
this Lease (or upon the 2100 Commencement Date with respect to Suite 1310), Tenant shall
quit and surrender possession of the Premises to Landlord in as good order and condition as
the same are now and hereafter may be improved by Landlord or Tenant, reasonable wear and
tear, damage caused by casualty, and repairs which are Landlord’s obligation excepted, and
shall, without expense to Landlord, remove or cause to be removed from the Premises all
debris and rubbish, all furniture, equipment, business and trade fixtures, free-standing
cabinet work, moveable partitioning and other articles of personal property owned by Tenant
or installed or placed by Tenant at its own expense in the Premises, and all similar
articles of any other persons claiming under Tenant unless Landlord exercises its option to
have any subleases or subtenancies assigned to it, and Tenant shall repair all damage to the
Premises resulting from the installation and removal of such items to be removed.

          (c) Whenever Landlord shall reenter the Premises as provided in Article 12 hereof, or
as otherwise provided in this Lease, any property of Tenant not removed by Tenant upon the
expiration of the Term of this Lease or upon the 2100 Commencement Date with respect to
Suite 1310 (or within forty-eight (48) hours after a termination by reason of Tenant’s
default), as provided in this Lease, shall be considered abandoned and Landlord may remove
any or all of such items and dispose of the same in any manner or store the same in a public
warehouse or elsewhere for the account and at the expense and risk of

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Tenant, and if Tenant shall fail to pay the cost of storing any such property after it
has been stored for a period of ninety (90) days or more, Landlord may sell any or all of
such property at public or private sale, in such manner and at such times and places as
Landlord, in its sole discretion, may deem proper, without notice or to demand upon Tenant,
for the payment of all or any part of such charges or the removal of any such property, and
shall apply the proceeds of such sale as follows: first, to the cost and expense of such
sale, including reasonable attorneys’ fees for services rendered; second, to the payment of
the cost of or charges for storing any such property; third, to the payment of any other
sums of money which may then or thereafter be due to Landlord from Tenant under any of the
terms hereof; and fourth, the balance, if any, to Tenant.

          (d) All fixtures, equipment, Alterations and/or appurtenances attached to or built into
the Premises prior to or during the Term, whether by Landlord or Tenant and whether at the
expense of Landlord or Tenant, or of both, shall be and remain part of the Premises and
shall not be removed by Tenant at the end of the Term unless otherwise expressly provided
for in this Lease or unless such removal is required by Landlord pursuant to the provisions
of Article 9, above. Such fixtures, equipment, Alterations, additions, improvements and/or
appurtenances shall include but not be limited to: all floor coverings, drapes, paneling,
built-in cabinetry, molding, doors, vaults (including vault doors), plumbing systems,
electrical systems, lighting systems, silencing equipment, communication systems, all
fixtures and outlets for the systems mentioned above and for all telephone, radio, telegraph
and television purposes, and any special flooring or ceiling installations.

ARTICLE 30

SUITE 2100

          (a) Suite 2100. There shall be added to the Premises, such additional space
known as Suite 2100, as described in Article 1 and Exhibit “A-2,” upon Landlord’s tendering
of said space to Tenant upon the vacancy of the existing tenant (the “2100 Delivery Date”).
The 2100 Delivery Date shall be delayed in the event that Landlord, for any reason other
than Tenant’s unreasonable acts or omissions, fails to deliver possession of Suite 2100 to
Tenant, including without limitation, due to the failure of the existing tenant to vacate
Suite 2100; provided Landlord takes commercially reasonable steps to recover possession of
Suite 2100.

          (b) Terms. Suite 2100 shall be included in the Premises on the following
terms:

          (i) The Basic Rental for Suite 2100 shall be as set forth in Article l.C,
above.

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          (ii) For all purposes of this Lease (other than the payment of rent), Suite
2100 shall be included in the “Premises” commencing on the 2100 Delivery Date. Suite
1310 shall no longer be part of the “Premises” on or after the 2100 Commencement
Date, provided that Tenant has vacated Suite 1310 in accordance with the terms of
this Lease. After the 2100 Commencement Date, “Premises” for the purposes of this
Lease, shall be deemed to include Suite 2100.

          (iii) The Improvement Allowance for Suite 2100 shall be as provided by
Landlord in the Tenant Work Letter, attached hereto as Exhibit “D.”

          (iv) All other terms and conditions of this Lease shall, except to the extent
inconsistent with this Article, apply to Suite 2100; provided, however, that
“Tenant’s Proportionate Share” shall be deemed to be Tenant’s Proportionate Share
for Suite 1310 at all times from the Commencement Date to the 2100 Commencement
Date (or such later date as Tenant vacates Suite 1310 in accordance with the terms
of this Lease) and Tenant’s Proportionate Share shall be deemed to be Tenant’s
Proportionate Share for Suite 2100 at all times from the 2100 Commencement Date to
the Expiration Date.

          (v) Notwithstanding anything to the contrary contained herein, Tenant hereby
acknowledges that Suite 2100 is currently occupied by another tenant pursuant to a
lease agreement with Landlord. As a result of the failure of the existing tenant to
vacate Suite 2100 in a timely manner, the 2100 Delivery Date may be substantially
delayed. Tenant hereby acknowledges and agrees that Landlord shall not be liable
for any damages, losses or liabilities suffered or incurred by Tenant as a result
of Landlord’s inability or delay in delivering Suite 2100 to Tenant caused by the
failure of the existing tenant to vacate Suite 2100 upon the expiration of the
existing lease and as and when requested by Landlord; provided Landlord takes
commercially reasonable steps to recover possession of Suite 2100.

          (c) Delivery of Suite 2100. Should Landlord, despite commercially reasonable
efforts, fail to recover possession of Suite 2100 on or before July 1, 2001, Landlord shall
have the option to terminate this Lease by giving thirty (30) days prior written notice to
Tenant of the exercise of such option no later than August 1, 2001.

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ARTICLE 31

MISCELLANEOUS

          (a) Severability; Entire Agreement. Any provision of this Lease which shall
prove to be invalid, void, or illegal shall in no way affect, impair or invalidate any other
provision hereof and such other provisions shall remain in full force and effect. This Lease
and the Exhibits and any Addendum attached hereto constitute the entire agreement between
the parties hereto with respect to the subject matter hereof, and no prior agreement or
understanding pertaining to any such matter shall be effective for any purpose. No provision
of this Lease may be amended or supplemented except by an agreement in writing signed by the
parties hereto or their successor in interest.

          (b) Attorneys’ Fees; Waiver of Jury Trial.

          (i) In any action to enforce the terms of this Lease, including any suit by
Landlord for the recovery of rent or possession of the Premises, the losing party
shall pay the successful party a reasonable sum for attorneys’ fees in such suit and
such attorneys’ fees shall be deemed to have accrued prior to the commencement of
such action and shall be paid whether or not such action is prosecuted to judgment.

          (ii) Should Landlord, without fault on Landlord’s part, be made a party to any
litigation instituted by Tenant or by any third party against Tenant, or by or
against any person holding under or using the Premises by license of Tenant, or for
the foreclosure of any lien for labor or material furnished to or for Tenant or any
such other person or otherwise arising out of or resulting from any act or
transaction of Tenant or of any such other person, Tenant covenants to save and hold
Landlord harmless from any judgment rendered against Landlord or the Premises or any
part thereof and from all costs and expenses, including reasonable attorneys’ fees
incurred by Landlord in connection with such litigation.

          (iii) When legal services are rendered by an attorney at law who is an employee
of a party, attorneys’ fees incurred by that party shall be deemed to include an
amount based upon the number of hours spent by such employee on such matters
multiplied by an appropriate billing rate determined by taking into consideration
the same factors, including but not limited by, the importance of the matter, time
applied, difficulty and results, as are considered when an attorney not in the
employ of a party is engaged to render such service.

          (iv) EACH PARTY HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION
SEEKING SPECIFIC PERFORMANCE OF ANY PROVISION OF THIS LEASE, FOR DAMAGES FOR
ANY BREACH UNDER THIS LEASE, OR OTHERWISE FOR ENFORCEMENT OF ANY RIGHT OR
REMEDY HEREUNDER.

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          (c) Time of Essence. Each of Tenant’s covenants herein is a condition and time
is of the essence with respect to the performance of every provision of this Lease.

          (d) Headings; Joint and Several. The article headings contained in this Lease
are for convenience only and do not in any way limit or amplify any term or provision
hereof. The terms “Landlord” and “Tenant” as used herein shall include the plural as well as
the singular, the neuter shall include the masculine and feminine genders and the
obligations herein imposed upon Tenant shall be joint and several as to each of the persons,
firms or corporations of which Tenant may be composed.

          (e) Reserved Area. Tenant hereby acknowledges and agrees that the exterior
walls of the Premises and the area between the finished ceiling of the Premises and the slab
of the floor of the project thereabove have not been demised hereby and the use thereof
together with the right to install, maintain, use, repair and replace pipes, ducts, conduits
and wires leading through, under or above the Premises in locations which will not
materially interfere with Tenant’s use of the Premises and serving other parts of the
Project are hereby excepted and reserved unto Landlord.

          (f) NO OPTION. THE SUBMISSION OF THIS LEASE BY LANDLORD, ITS AGENT OR
REPRESENTATIVE FOR EXAMINATION OR EXECUTION BY TENANT DOES NOT CONSTITUTE AN OPTION OR OFFER
TO LEASE THE PREMISES UPON THE TERMS AND CONDITIONS CONTAINED HEREIN OR A RESERVATION OF THE
PREMISES IN FAVOR OF TENANT, IT BEING INTENDED HEREBY THAT THIS LEASE SHALL ONLY BECOME
EFFECTIVE UPON THE EXECUTION HEREOF BY LANDLORD AND DELIVERY OF A FULLY EXECUTED LEASE TO
TENANT.

          (g) Use of Project Name; Improvements. Tenant shall not be allowed to use the
name, picture or representation of the Project, or words to that effect, in connection with
any business carried on in the Premises or otherwise (except as Tenant’s address) without
the prior written consent of Landlord. In the event that Landlord undertakes any additional
improvements on the Real Property including, but not limited to, new construction or
renovation or additions to the existing improvements, Landlord shall not be liable to Tenant
for any noise, dust, vibration or interference with access to the Premises or disruption in
Tenant’s business caused thereby.

          (h) Rules and Regulations. Tenant shall observe faithfully and comply strictly
with the Rules and Regulations attached to this Lease as Exhibit “B” and made a part hereof,
and such other Rules and Regulations as Landlord may from time to time reasonably adopt for
the safety, care and

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cleanliness of the Project, the facilities thereof, or the preservation of good order
therein. Landlord shall not be liable to Tenant for violation of any such Rules and
Regulations, or for the breach of any covenant or condition in any lease by any other tenant
in the Project. A waiver by Landlord of any Rule or Regulation for any other tenant shall
not constitute nor be deemed a waiver of the Rule or Regulation for this Tenant.

          (i) Quiet Possession. Upon Tenant’s paying the Basic Rent, Additional Rent and
other sums provided hereunder and observing and performing all of the covenants, conditions
and provisions on Tenant’s part to be observed and performed hereunder, Tenant shall have
quiet possession of the Premises for the entire Term hereof, subject to the provisions of
Article 1 and Article 30 and of all other provisions of this Lease.

          (j) Rent. All payments required to be made hereunder to Landlord shall be
deemed to be rent, whether or not described as such.

          (k) Successors and Assigns. Subject to the provisions of Article 15 hereof, all
of the covenants, conditions and provisions of this Lease shall be binding upon and shall
inure to the benefit of the parties hereto and their respective heirs, personal
representatives, successors and assigns.

          (l) Notices. Any notice required or permitted to be given hereunder shall be in
writing and may be given by personal service evidenced by a signed receipt or sent by
registered or certified mail, return receipt requested, addressed to Tenant at:

	 	 	 
	 

	 	Thomas Weisel Partners Group, LLC One
	 

	 	Montgomery Street, 38th Floor San
	 

	 	Francisco, California 94104 
	 

	 	Attention: Corporate Facilities

or to Landlord at:

	 	 	 
	 

	 	TIAA-CREF Mortgage and Real Estate Division 730 3rd
	 

	 	Avenue, 7th Floor New York, New York 10017 
	 

	 	Attention: TIAA Real Estate Account

which shall be effective upon proof of delivery. The address for the payment of rent shall be:

	 	 	 
	 

	 	Department 00036
	 

	 	P.O. Box 39000
	 

	 	San Francisco, California 94139-0036

Either party may by notice to the other specify a different address for notice purposes

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except that, upon Tenant’s taking possession of the Premises, the Premises shall constitute
Tenant’s address for notice purposes. A copy of all notices to be given to Landlord hereunder shall
be concurrently transmitted by Tenant to such party hereafter designated by notice from Landlord to
Tenant. Any notices sent by Landlord regarding or relating to eviction procedures, including
without limitation three day notices, may be sent by regular mail.

          (m) Right of Landlord to Perform. All covenants and agreements to be performed
by Tenant under any of the terms of this Lease shall be performed by Tenant at Tenant’s sole
cost and expense and without any abatement of rent. If Tenant shall fail to pay any sum of
money, other than rent, required to be paid by it hereunder or shall fail to perform any
other act on its part to be performed hereunder, and such failure shall continue beyond any
applicable cure period set forth in this Lease, Landlord may, but shall not be obligated to,
without waiving or releasing Tenant from any obligations of Tenant, make any such payment or
perform any such other act on Tenant’s part to be made or performed as is in this Lease
provided. All sums so paid by Landlord and all reasonable incidental costs, together with
interest thereon at the rate often percent (10%) per annum from the date of such payment by
Landlord, shall be payable to Landlord on demand and Tenant covenants to pay any such sums,
and Landlord shall have (in addition to any other right or remedy of Landlord) the same
rights and remedies in the event of the nonpayment thereof by Tenant as in the case of
default by Tenant in the payment of the rent.

          (n) Access, Changes in Project Facilities, Name.

          (i) Every part of the Project except the inside surfaces of all walls, windows
and doors bounding the Premises (including exterior building walls, core corridor
walls and doors and any core corridor entrance), and any space in or adjacent to the
Premises used for shafts, stacks, pipes, conduits, fan rooms, ducts, electric or
other utilities, sinks or other building facilities, and the use thereof, as well as
access thereto through the Premises for the purposes of operation, maintenance,
decoration and repair, are reserved to Landlord.

          (ii) Tenant shall permit Landlord to install, use and maintain pipes, ducts and
conduits within the walls, columns and ceilings of the Premises.

          (iii) Landlord reserves the right, without incurring any liability to Tenant
therefor, to make such changes in or to the Project and the fixtures and equipment
thereof, as well as in or to the street entrances, halls, passages, elevators,
stairways and other improvements thereof, as it may deem necessary or desirable.

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          (iv) Landlord may adopt any name for the Project and Landlord reserves the
right to change the name or address of the Project at any time.

          (o) Signing Authority. If Tenant is a corporation, partnership or limited
liability company, each individual executing this Lease on behalf of said entity represents
and warrants that he or she is duly authorized to execute and deliver this Lease on behalf
of said entity in accordance with: (i) if Tenant is a corporation, a duly adopted resolution
of the Board of Directors of said corporation or in accordance with the by-laws of said
corporation, (ii) if Tenant is a partnership, the terms of the partnership agreement, and
(iii) if Tenant is a limited liability company, the terms of its operating agreement, and
that this Lease is binding upon said entity in accordance with its terms. Concurrently with
Tenant’s execution of this Lease, Tenant shall provide to Landlord a copy of: (i) if Tenant
is a corporation, such resolution of the Board of Directors authorizing the execution of
this Lease on behalf of such corporation, which copy of resolution shall be duly certified
by the secretary or an assistant secretary of the corporation to be a true copy of a
resolution duly adopted by the Board of Directors of said corporation and shall be in the
form of Exhibit “E” or in some other form reasonably acceptable to Landlord, (ii) if Tenant
is a partnership, a copy of the provisions of the partnership agreement granting the
requisite authority to each individual executing this Lease on behalf of said partnership,
and (iii) if Tenant is a limited liability company, a copy of the provisions of its
operating agreement granting the requisite authority to each individual executing this Lease
on behalf of said limited liability company. In the event Tenant fails to comply with the
requirements set forth in this subparagraph (p), then each individual executing this Lease
shall be personally liable for all of Tenant’s obligations in this Lease.

          (p) Identification of Tenant.

          (i) If Tenant constitutes more than one person or entity, each of them shall be
jointly and severally liable for the keeping, observing and performing of all of the
terms, covenants, conditions and provisions of this Lease to be kept, observed and
performed by Tenant, the term “Tenant” as used in this Lease shall mean and include
each of them jointly and severally, and (C) the act of or notice from, or notice or
refund to, or the signature of, any one or more of them, with respect to the tenancy
of this Lease, including, but not limited to, any renewal, extension, expiration,
termination or modification, of this Lease, shall be binding upon each and all of
the persons or entities executing this Lease as Tenant with the same force and
effect as if each and all of them had so acted or so given or received such notice
or refund or so signed.

          (ii) If Tenant is a partnership (or is comprised of two or more persons,
individually and as co-partners of a partnership) or if

-40-

 

Tenant’s interest in this Lease shall be assigned to a partnership (or to two
or more persons, individually and as co-partners of a partnership) pursuant to
Article 15 hereof (any such partnership and such persons hereinafter referred to in
this Article 31(q)(ii) as “Partnership Tenant”), the following provisions of this
Lease shall apply to such Partnership Tenant:

          (A) The liability of each of the parties comprising Partnership Tenant
shall be joint and several. Each of the parties comprising Partnership
Tenant hereby consents in advance to, and agrees to be bound by, any written
instrument which may hereafter be executed, changing, modifying or
discharging this Lease, in whole or in part, or surrendering all or any part
of the Premises to the Landlord, and by notices, demands, requests or other
communication which may hereafter be given, by the individual or individuals
authorized to execute this Lease on behalf of Partnership Tenant under
Subparagraph (p) above.

          (C) Any bills, statements, notices, demands, requests or other
communications given or rendered to Partnership Tenant or to any of the
parties comprising Partnership Tenant shall be deemed given or rendered to
Partnership Tenant and to all such parties and shall be binding upon
Partnership Tenant and all such parties.

          (D) If Partnership Tenant admits new partners, all of such new partners
shall, by their admission to Partnership Tenant, be deemed to have assumed
performance of all of the terms, covenants and conditions of this Lease on
Tenant’s part to be observed and performed.

          (E) Partnership Tenant shall give prompt notice to Landlord of the
admission of any such new partners, and, upon demand of Landlord, shall
cause each such new partner to execute and deliver to Landlord an agreement
in form satisfactory to Landlord, wherein each such new partner shall assume
performance of all of the terms, covenants and conditions of this Lease on
Partnership Tenant’s part to be observed and performed (but neither
Landlord’s failure to request any such agreement nor the failure of any such
new partner to execute or deliver any such agreement to Landlord shall
terminate the provisions of clause (D) of this Article 3 l(q)(ii) or relieve
any such new partner of its obligations thereunder).

          (q) Survival of Obligations. Any obligations of Tenant occurring prior to the expiration or earlier termination of this

-41-

 

Lease shall survive such expiration or earlier termination.

          (r) Confidentiality. Tenant acknowledges that the content of this Lease and any
related documents are confidential information. Tenant shall keep such confidential
information strictly confidential and shall not disclose such confidential information to
any person or entity other than Tenant’s financial, legal and space planning consultants and
any proposed subtenants or assignees.

          (s) Governing Law. This Lease shall be governed by and construed in accordance
with the laws of the State of California. No conflicts of law rules of any state or country
(including, without limitation, California conflicts of law rules) shall be applied to
result in the application of any substantive or procedural laws of any state or country
other than California. All controversies, claims, actions or causes of action arising
between the parties hereto and/or their respective successors and assigns, shall be brought,
heard and adjudicated by the courts of the State of California, with venue in the County of
San Francisco. Each of the parties hereto hereby consents to personal jurisdiction by the
courts of the State of California in connection with any such controversy, claim, action or
cause of action, and each of the parties hereto consents to service of process by any means
authorized by California law and consent to the enforcement of any judgment so obtained in
the courts of the State of California on the same terms and conditions as if such
controversy, claim, action or cause of action had been originally heard and adjudicated to a
final judgment in such courts. Each of the parties hereto further acknowledges that the laws
and courts of California were freely and voluntarily chosen to govern this Lease and to
adjudicate any claims or disputes hereunder.

          (t) Consent. Whenever a party’s approval or consent is required hereunder,
then, unless another standard is stated hereunder, the party’s whose consent or approval is
required shall not unreasonably withhold or delay such consent or approval.

          (u) Exhibits and Addendum. The Exhibits and Addendum, if applicable, attached
hereto are incorporated herein by this reference as if fully set forth herein.

-42-

 

     IN WITNESS WHEREOF, the parties have executed this Lease, consisting of the foregoing
provisions and Articles, including all exhibits and other attachments referenced therein, as of the
date first above written.

	 	 	 	 	 	 
	 	 	“Landlord”
	 
	 	 	 	 
	 	 	TEACHERS INSURANCE ANNUITY ASSOCIATION OF AMERICA,
for the benefit of its separate Real Estate Account
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David F. Morrison
	 

	 	 	 	 
	 

	 	 	 	David F. Morrison, Associate Director
	 
	 	 	 	 
	 	 	“Tenant”
	 
	 	 	 	 
	 	 	THOMAS WEISEL PARTNERS GROUP, LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Shaugn Stanley       Partner/CFO
	 

	 	 	 	 
	 	 	[Printed Name and Title]

-43-

 

FIRST AMENDMENT TO LEASE

          This First Amendment to Lease (“Amendment”) is entered into as of February 1, 2000 by and
between TEACHERS INSURANCE ANNUITY ASSOCIATION OF AMERICA, for the benefit of its separate Real
Estate Account (“Landlord”), and THOMAS WEISEL PARTNERS GROUP, LLC, a Delaware limited liability
company (“Tenant”), with respect to the following facts and circumstances:

          A. Landlord and Tenant have previously entered into a Standard
Office Lease dated as of January 10, 2000 (the “Lease”) with respect to Suites 1310
and 2100 of the Project (the “Project”), commonly known as 88 Kearny Street,
San Francisco, California.

          B. Landlord and Tenant desire to amend the Lease to, among other
things, add additional premises and adjust the square footage effective as of March 1,
2000, on the terms and conditions contained herein.

          NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant
hereby agree as follows:

          1. Capitalized terms used and not otherwise defined in this Amendment
shall have the meanings set forth for them in the Lease.

          2. The following amendments shall be effective as of March 1,2000:

               0.1 The second paragraph of the Lease shall be deleted in its entirety and the following
substituted in its place:

        “Landlord hereby leases to Tenant and. Tenant hereby leases from Landlord the premises
initially described as Suites No. 1310 and 1300, and an additional portion of the 13th floor
of the Project (‘the Additional 13th Floor Space’), as designated on the plans attached
hereto and incorporated herein as Exhibits ‘A-l’, ‘A-3’ and ‘A-4’ and (subject to the terms
of Article 30 of this Lease) the premises described in Suite 2100, as designated on the plan
attached hereto and incorporated herein as Exhibit ‘A-2’ (each and collectively, the
‘Premises’), of the project (‘Project’) now known as 88 Kearny Street, San Francisco,
California 94108, for the Term and upon the terms and conditions hereinafter set forth, and
Landlord and Tenant hereby agree as follows:”

               0.2 The Lease is hereby amended by adding Exhibits “A-3” and “A-4” from this Amendment, which
Exhibit “A-3” depicts Suite 1300 and Exhibit “A-4” depicts the Additional 13th Floor Space.

 

 

               0.3 Paragraph 1 (B) of the Lease is hereby deleted in its entirety and the following is
substituted in its place:

	 	 	 	 	 
	 

	 	“Square Footage:
	 	Suite 1300 — 2,011 rentable square feet
	 

	 	 	 	Suite 1310- 5,282 rentable square feet
	 

	 	 	 	Additional 13th Floor Space -1,629 rentable square feet
	 

	 	 	 	Suite 2100- 8,997 rentable square feet.”

               0.4 Paragraph 1(C) of the Lease is hereby deleted in its entirety and the following is substituted in its place:

     “Basic Rental:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Annual Basic	 	Monthly	 	Monthly Basic Rental
	Lease Period	 	Rental	 	Basic Rental	 	Per Rentable Square Foot
	Commencement Date
through the 2100
Commencement Date
	 	$	428,256.00	 	 	$	35,688.00	 	 	$	4.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2100 Commencement
Date through the
date which is 5
years after the
2100 Commencement
Date (Lease Years
1-5)
	 	$	521,826.00	 	 	$	43,485.50	 	 	$	4.83333	/rsf
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The date which is 5
years after the
2100 Commencement
Date through the
Expiration Date
(Lease Years 6-10)
	 	$	575,808.00	 	 	$	47,984.00	 	 	$	5.33333	/rsf

               0.5 Paragraph 1(E) of the Lease is hereby deleted in its entirety and the following is
substituted in its place:

	 	 	 	 	 
	 

	 	“Tenant’s Proportionate Share:
	 	Suite 1300, 1310 and the Additional 13th Floor Space,
collectively — 3.908% -(based on 228,302 rsf in the
Project) Suite 2100 — 3.941%
(based on 228,302 rsf the Project)”

 

 

               0.6 The first sentence of Article 5 of the Lease is hereby amended by deleting the phrase
“Suite 1310 after the 2100 Commencement Date ...” substituting the following phrase “Suite 1300,
Suite 1310 or the Additional 13th Floor Space after the 2100 Commencement Date” in its place.

               0.7 All improvements made by Tenant to Suite 1300, Suite 1310 or the Additional 13th Floor
Space shall be governed by the terms of Article 9 of the Lease.

               0.8 The first sentence of Article 29(b) and the first sentence of Article 29(c) of the Lease
are hereby amended by deleting the phrase “with respect to Suite 1310” and substituting the
following phrase “with respect to Suite 1300, Suite 1310 and the Additional 13th Floor Space” in
its place.

               0.9 The second sentence of Article 30(b)(ii) of the Lease is hereby deleted in its entirety
and the following is substituted in its place:

          “Suite 1300, Suite 1310 and the Additional 13th Floor Space shall no longer be
part of the ‘Premises’ on or after the 2100 Commencement Date, provided that Tenant
has vacated Suite 1300, Suite 1310 and the Additional 13th Floor Space in
accordance with the terms of this Lease.”

               0.10 Article 30(b)(iv) of the Lease is hereby deleted in its entirety and the following is
substituted in its place:

          “All other terms and conditions of this Lease shall, except to the extent
inconsistent with this Article, apply to Suite 2100; provided, however, that
‘Tenant’s Proportionate Share1 shall be deemed to be Tenant’s
Proportionate Share for Suite 1300, Suite 1310 and the Additional 13th Floor Space
at all times from the Commencement Date to the 2100 Commencement Date (or such later
date as Tenant vacates Suite 1300, Suite 1310 and the Additional 13th Floor Space in
accordance with the terms of this Lease) and Tenant’s Proportionate Share shall be
deemed to be Tenant’s Proportionate Share for Suite 2100 at all times from the 2100
Commencement Date to the Expiration Date.”

               0.11 For all purposes of the Lease, the “2100 Delivery Date” shall be deemed to be March 1,
2000.

          3. As additional consideration for this Amendment, Tenant and Landlord hereby certify that:

               3.1 The Lease is in full force and effect.

               3.2 Tenant is in possession of Suite 1310.

               3.3 Monthly Basic Rental has been paid through February 29, 2000.

 

 

               3.4 To the best of their knowledge, there are no uncured defaults on the part of Landlord or
Tenant under the Lease.

          4. Each party represents and warrants that it has not had any dealings with any realtors,
brokers or agents in connection with the negotiation of this Amendment. Each party agrees to pay,
and hold the other harmless from, any cost, expense or liability for any compensation, commission
or charges claimed by any realtors, brokers or agents claiming by, through or on behalf of it with
respect to this Amendment and/or the negotiation hereof.

          5. Except as specifically provided herein, the terms and provisions of the
Lease are reaffirmed and continue in full force and effect.

          6. This Amendment shall be binding upon the heirs, administrators,
successors and assigns (as the case may be) of the parties hereto.

          IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 	 
	“Tenant”	 	“Landlord”
	 
	 	 	 	 	 	 
	THOMAS WEISEL PARTNERS
GROUP, LLC,
a Delaware limited liability company	 	TEACHERS INSURANCE
ANNUITY ASSOCIATION OF AMERICA, for the benefit of its separate Real Estate Account
	 
	 	 	 	 	 	 
	By:

	 	/s/ Shaugn Stanley
	 	By:
	 	 
	 

	 	 
	 	 	 	 
	 

	 	Shaugn Stanley, CFO
	 	 	 	David F. Morrison,
	 

	 	[Print Name and Title]
	 	 	 	Associate Director

 

 

SECOND AMENDMENT TO LEASE

          This Second Amendment to Lease (“Amendment”) is entered into as of June 21, 2000 by and
between TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA, for the benefit of its Separate Real
Estate Account (“Landlord”), and THOMAS WEISEL PARTNERS GROUP, LLC, a Delaware limited liability
company (“Tenant”), with respect to the following facts and circumstances:

          A. Landlord and Tenant have previously entered into (i) a Standard
Office Lease dated as of January 10, 2000 with respect to Suites 1310 and 2100 of the
Project (the “Project”), commonly known as 88 Kearny Street, San Francisco,
California, and (ii) a First Amendment to Lease dated as of February 14, 2000 (as
amended, the “Lease”). Concurrent with the execution of this Amendment, Landlord
and Tenant have executed that certain Standard Office Lease dated as of June 21, 2000
with respect to Suites 200, 300, 400 and 500 of the Project.

          B. Landlord and Tenant desire to amend the Lease to, among other
things, add additional premises, on the terms and conditions contained herein.

          NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant
hereby agree as follows:

          1. Capitalized terms used and not otherwise defined in this
Amendment shall have the meanings set forth for them in the Lease.

          2. Tenant hereby acknowledges that, as of the date of this
Amendment, Tenant is in possession of Suite Nos. 1300, 1310 and the Additional 13th Floor Space. In
addition, Landlord and Tenant hereby acknowledge and agree that Suite 2100 has been tendered by
Landlord to Tenant and that the 2100 Commencement Date shall be June 1, 2000.

          3. The following amendments shall be effective retroactive to June 1, 2000:

               3.1 The 2100 Commencement Date shall be deemed to be June 1, 2000, and the Expiration Date
shall be May 31, 2010.

               3.2 Paragraph 1(A) of the Lease is hereby deleted in its entirety and the following is substituted in its place:

          “Term: The period of time beginning with

 

 

the Commencement Date and ending on the Expiration Date.”

               3.3 Paragraph 1(C) of the Lease is hereby deleted in its entirety and the following is
substituted in its place:

     “Suite 2100 Basic Rental:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Annual	 	Monthly	 	Monthly Basic Rental
	Lease Period	 	Basic Rental	 	Basic Rental	 	Per Rentable Square Foot
	 
	June 1,2000 through May 31, 2005 (Lease Years 1-5)
	 	$	521,826.00	 	 	$	43,485.50	 	 	$	4.83333	/rsf
	June 1,2005 through May 31, 2010 (Lease Years 6-10)
	 	$	575,808.00	 	 	$	47,984.00	 	 	$	5.33333	/rsf

     Suite 1300, 1310 and Additional 13th Floor Space Basic Rental:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Annual	 	Monthly	 	Monthly Basic Rental
	Lease Period	 	Basic Rental	 	Basic Rental	 	Per Rentable Square Foot
	 
	June 1,2000 through May 31, 2005 (Lease Years 1-5)
	 	$	669,150.00	 	 	$	55,762.50	 	 	$	6.25	/rsf
	June 1,2005 through May 31, 2010 (Lease Years 6-10)
	 	$	713,760.00	 	 	$	59,480.00	 	 	$	6.66666	/rsf

               3.4 Paragraph 1(E) of the Lease is hereby deleted in its entirety and the following is
substituted in its place:

     “Tenant’s Proportionate Share: 7.849% (based on 228,302 rsf in the Project)”

               3.5 Paragraph 1(F) of the Lease is hereby deleted in its entirety and the following is
substituted in its place:

          “Security Deposit: $99,248.00”

               3.6 The first paragraph of Article 4 is hereby amended to be Article 4, subsection (a).

               3.7 Article 4 of the Lease is hereby amended by adding the

 

 

following:

"(b) Tenant shall have the option to deliver an irrevocable standby
letter of credit (‘Letter of Credit’) to Landlord, in the face amount
of $99,248.00, issued by a money-center bank (a bank which accepts
deposits, maintains accounts and whose deposits are insured by the
FDIC) acceptable to Landlord in Landlord’s sole discretion and in form
and content and on terms and conditions acceptable to Landlord in
Landlord’s sole discretion, as the Security Deposit required pursuant
to this Article 4.”

               3.8 The first sentence of Article 5 of the Lease is hereby amended by deleting the phrase “or
hold over in Suite 1300, Suite 1310 or the Additional 13th Floor Space after the 2100 Commencement
Date without Landlord’s written consent.”

               3.9 The first sentence of Article 29(b) of the Lease is hereby amended by deleting the phrase
"(or upon the 2100 Commencement Date with respect to Suite 1300, Suite 1310 and the Additional 13th
Floor Space).”

               3.10 The first sentence of Article 29(c) of the Lease is hereby amended by deleting the phrase
“or upon the 2100 Commencement Date with respect to Suite 1300, Suite 1310 and the Additional 13th
Floor Space.”

               3.11 Article 30 of the Lease is hereby deleted in its entirety and the following is
substituted in its place.

ARTICLE 30

RIGHT OF FIRST OFFER

          Provided that no default by Tenant has occurred and remained uncured beyond any applicable
cure period under any term or provision contained in this Lease and no condition exists which with
the passage of time or the giving of notice or both would constitute a default pursuant to this
Lease, Tenant (but not any other assignee or subtenant) shall have the one-time right,
subject to the terms and conditions set forth below, to lease certain space currently used as the
management office of the Project which is located on the thirteenth floor of the Project and
consists of approximately 1,500 rentable square feet (the ‘First Offer Space’), if, and when, the
First Offer Space becomes ‘available’ (as defined below) for leasing, before it is leased to any
third party.

          If at any time during the Term of this Lease, the First Offer Space becomes available for
leasing, Landlord shall give Tenant notice (the ‘Landlord

 

 

Notice’) of the availability of the First Offer Space no later than the later of (i) two (2)
months prior to the date on which the First Offer Space shall become available, or (ii) promptly
after Landlord learns that the First Offer Space will become available, and in either event, prior
to offering the First Offer Space for lease to any third party. As used herein, ‘available’ means
that Landlord has chosen to relocate the management office to another floor of the Project, and no
third party has an option or other right to lease the First Offer Space granted prior to the time
of the grant contained herein. If Tenant does not give Landlord written notice (the ‘Tenant
Notice’), within five (5) business days after Tenant’s receipt of the Landlord Notice, that Tenant
is interested in leasing all of the available First Offer Space, or Landlord and Tenant have not,
within ten (10) days after Landlord’s receipt of the Tenant Notice, agreed on the basic lease terms
for the First Offer Space, including the rental rate, the term, the operating expense allowance, if
any, and which party bears the cost of constructing leasehold improvements, then, in either such
event, Landlord may offer the available First Offer Space for lease to third parties, including
offering to third parties lease terms more favorable than the lease terms offered by Landlord to
Tenant. Notwithstanding the foregoing, in no event shall Tenant’s Monthly Basic Rental Per Rentable
Square Foot for the First Offer Space be less than the Monthly Basic Rental Per Rentable Square
Foot for Suite Nos. 1300, 1310 and the Additional 13th Floor Space at the time of the commencement
date for the First Offer Space. If Landlord and Tenant agree on the basic lease terms, the
available First Offer Space shall be added to this Lease by amendment. This right of first offer is
a one-time right and shall not apply to the First Offer Space if it becomes available at any time
after the First Offer Space is initially offered to Tenant pursuant to this provision.”

          4. Concurrently with its execution and delivery of this Amendment to Landlord, Tenant shall
either (i) deliver a check made payable to Landlord in the amount of $55,762.00, which sum shall be
added to the Security Deposit currently held be Landlord, or (ii) deposit with Landlord the Letter
of Credit.

          5. As additional consideration for this Amendment, Tenant and Landlord hereby certify that:

               5.1 The Lease is in full force and effect.

               5.2 Tenant is in possession of Suites 1300, 1310, 2100 and the Additional 13th Floor Space.

               5.3 Monthly Basic Rental has been paid through June 30, 2000.

               5.4 To the best of their knowledge, there are no uncured defaults on the part of Landlord or
Tenant under the Lease.

          6. Each party represents and warrants that it has not had any dealings with any realtors,
brokers or agents in connection with the negotiation of this

 

 

Amendment. Each party agrees to pay, and hold the other harmless from, any cost, expense or
liability for any compensation, commission or charges claimed by any realtors, brokers or agents
claiming by, through or on behalf of it with respect to this Amendment and/or the negotiation
hereof.

          7. Except as specifically provided herein, the terms and provisions of the Lease are
reaffirmed and continue in full force and effect.

          8. This Amendment shall be binding upon the heirs, administrators, successors and assigns (as
the case may be) of the parties hereto.

          IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to be duly executed
as of the date first above written.

	 	 	 	 	 	 	 	 
	“Tenant”	 	“Landlord”
	 
	 	 	 	 	 	 
	THOMAS WEISEL PARTNERS
GROUP, LLC,
a Delaware limited liability company	 	TEACHERS INSURANCE
ANNUITY ASSOCIATION OF AMERICA,
for the benefit of its separate Real Estate Account
	 
	 	 	 	 	 	 
	By:

	 	/s/ Shaugn Stanley
	 	By:
	/s/ David F. Morrison
	 

	 	 
	 	 	 
	 

	 	Shaugn Stanley      CFO/Partner
	 	 	 	David F. Morrison,
	 

	 	[Print Name and Title]
	 	 	 	Associate Director

 

 

THIRD AMENDMENT TO LEASE

     THIS THIRD AMENDMENT TO LEASE (“Amendment”), dated as of the 29th day of October, 2003, is
made by and between THOMAS WEISEL PARTNERS GROUP LLC, a Delaware limited liability company
(“Tenant”), and TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA, for the benefit of its
Separate Real Estate Account (“Landlord”).

RECITALS

          A. Tenant and Landlord are parties to that certain Standard Office Lease dated January 10,
2000 (incorrectly dated on said document as January 10, 1999), amended by that certain First
Amendment to Lease dated February 1, 2000, and that certain Second Amendment to Lease dated June
21, 2000 by and between Landlord and Tenant (as amended, the “Lease”) with respect to 17,919
rentable square feet known as Suite 1300, Suite 1310, the Additional 13th Floor Space and Suite
2100 of the Project located at 88 Kearny Street, San Francisco, California (the “Project").

          B. Tenant has notified Landlord that Tenant’s financial position has made it difficult for
Tenant to continue to pay rent as it accrues under the Lease.

          C. Tenant has requested that Landlord forbear from collecting a portion of the rent accruing
under the Lease until the Forbearance Outside Date (defined below) or until the occurrence of a
Termination Event (defined below). Landlord is willing to accede to such request on the terms and
conditions hereinafter set forth.

          D. Capitalized terms used and not otherwise defined in this Amendment shall have
the meanings set forth for them in the Lease.

          NOW, THEREFORE, in consideration of the Premises and the mutual covenants herein contained and
intending to be legally bound, the parties hereto (“Parties”) hereby agree as follows:

          1.1 Amendment to Lease. As of the Forbearance Effective Date (defined below),
the following new Articles 19(h) and 19(i) are hereby added to the Lease after Article 19(g)
thereof:

          "(h) The occurrence of any ‘Event of Default’ under that certain Standard Office Lease by and
between Landlord and Tenant with respect to Suites 200, 300, 400 and 500 of the Project dated June
21, 2000, as amended (the ‘Additional Lease’).

          (i) Tenant’s failure to pay any Forbearance Amount as and when due and payable.”

     2. Forbearance. Subject to the conditions set forth in Section 2.1 below and the
termination provisions of Section 2.2 below, Landlord shall forbear from requiring Tenant to pay a
portion of the Monthly Basic Rental (each, a “Monthly Forbearance Amount” and collectively, the
“Forbearance Amounts”) in a monthly amount equal to the amount of Monthly Basic Rental payable by
Tenant under the Lease which is in excess of $74,662.50, during the period from the Forbearance
Effective Date through and including the date which is twenty-four (24) months after the
Forbearance Effective Date (the “Forbearance Outside Date”), prorated for any partial months,
without in any way prejudicing Landlord’s right to collect accrued rent in accordance with this
Amendment and the Lease.

 

 

          2.1 Conditions. Landlord’s agreement to forbear shall not be effective until the date
(the “Forbearance Effective Date”) on which the last of the following conditions is satisfied:

               2.1.1 All representations and warranties set forth in this Amendment shall be true and
correct;

               2.1.2 Tenant shall have paid to Landlord those amounts required under Section 2.1.2 of that
certain Second Amendment to Lease by and between Landlord and Tenant dated October 8, 2003,
relating to the Additional Lease; and

               2.1.3 Tenant shall have delivered to Landlord a Letter of Credit conforming in all
respects with Article 4 of the Additional Lease.

          2.2 Termination. Landlord’s agreement to forbear shall automatically terminate and all
then-accrued Forbearance Amounts shall be immediately due and payable to Landlord, without further
act or instrument, upon the occurrence of any of the following events (a “Termination Event"):

               2.2.1 Tenant repudiates, or asserts a defense to, any obligation or liability under the Lease
or this Amendment or makes or pursues a claim against Landlord which has previously been released
pursuant to Section 5 of this Amendment; or

               2.2.2 A petition for relief under any federal or state bankruptcy, reorganization or
insolvency statute or law is filed by or against Tenant or any member of Tenant; or

               2.2.3 Tenant fails to timely perform and observe any of the covenants, agreements and
obligations contained in the Lease or this Amendment that constitutes an Event of Default under the
Lease which would permit Landlord to exercise its right to terminate the Lease and seek to recover
possession of the Premises; or

               2.2.4 Tenant has met its Financial Threshold. For the purposes of this Amendment, Tenant shall
be deemed to have met its “Financial Threshold” upon the occurrence of any of the following:

                         (a) Audited financial statements demonstrate that Tenant’s positive pre-tax net income in any
calendar year after 2002 is equal to or in excess of thirty-five percent (35%) of the positive
pre-tax net income of Tenant for calendar year 2000; or

                         (b) Tenant merges into or with another entity or Tenant is acquired by another entity, whether
or not deemed a Transfer under the Lease; or

                         (c) Tenant is required to begin accruing its obligation to repay the Forbearance Amounts in
its financial statements in accordance with generally accepted accounting principles, consistently
applied; or

                         (d) Tenant has achieved total annual revenue in any calendar year after 2002 of at least
sixty-five percent (65%) of Tenant’s total annual revenue for calendar year 2000.

          2.3 Covenants. Tenant shall keep true and correct financial books and records, using
generally accepted accounting principles. Tenant shall provide to Landlord the following:

 

 

          2.3.1 Within one hundred twenty (120) days after Tenant’s fiscal year end, Tenant’s annual
financial statements. These financial statements shall be audited by a certified public accountant
acceptable to Landlord;

               2.3.2 Within five (5) months after Tenant’s fiscal year end, signed copies of Tenant’s federal
tax return and all supporting schedules (excluding schedules listing individual partner
distributions);

               2.3.3 Within forty-five (45) days of the end of each quarter of Tenant’s fiscal year,
quarterly balance sheets and income statements for Tenant; and

               2.3.4 Promptly upon the request of Landlord, such other information as Landlord may reasonably
request concerning the affairs and properties of Tenant relating to the Financial Thresholds of
Tenant.

          2.4 Repayment of Forbearance Amounts.

               2.4.1 Termination Event. Within five (5) business days after receipt of written
notice from Landlord that any Termination Event set forth in Sections 2.2.1 through 2.2.4 of this
Amendment has occurred, Tenant shall remit all accrued Forbearance Amounts to Landlord.

               2.4.2 Financial Threshold. Within five (5) business days after receipt of written
notice from Landlord that Tenant’s Financial Threshold has been met (a “Payment Event”), fifty
percent (50%) of all accrued Forbearance Amounts shall be remitted to Landlord by Tenant. The
remaining fifty percent (50%) of any accrued Forbearance Amounts shall be payable to Landlord
within five (5) business days after receipt of written notice from Landlord that Tenant’s Financial
Threshold has again been met at any time during the Lease Term and which is at least nine (9)
months after the occurrence of the first Payment Event (the “Final Payment Date”), whether or not
the Final Payment Date occurs before or after the Expiration Date. Tenant’s failure to timely remit
any Forbearance Amounts to Landlord when due shall be deemed an Event of Default under the Lease.

          2.5 Payments. All payments to be made by Tenant pursuant to this Amendment shall be
made by wire transfer, cashier’s check or other immediately available funds.

     3. No Waiver of Rights Under Lease. Neither the failure nor delay by Landlord to
exercise its rights or remedies nor the acceptance of any partial payments or any other partial
performance (whether any of the foregoing is before or after the date of this Amendment) nor any
provision of this Amendment shall amend, modify, supplement, extend, delay, renew, terminate,
waive, release or otherwise limit or prejudice Landlord’s rights and remedies or Tenant’s
obligations under the Lease (including, but not limited to, Landlord’s right to receive full
payment of rent as well as all payments set forth in this Amendment) except as specifically
provided in a written agreement between the Parties that is fully executed and delivered (and
except that, without modifying or amending the Lease, Landlord agrees to forbear to the extent
specifically provided in Section 2 hereof). In particular, Tenant understands that nothing referred
to above, including, without limitation, the acceptance by Landlord of any partial payments, shall
operate to prohibit, restrict or otherwise inhibit Landlord from exercising any right or remedy it
may have under the Lease (except that Landlord agrees to forbear to the extent specifically
provided in Section 2 hereof) or constitute a cure of any existing default, and, without
limitation, shall not extend any applicable forbearance or redemption period.

     4. Confirmation. Tenant will not seek or obtain any injunction or other contest

 

 

or hindrance of any remedies by Landlord, whether in state court, bankruptcy court or
otherwise, either before or after the Forbearance Outside Date.

     5. Release. Tenant hereby discharges and forever releases Landlord, its partners,
agents, employees, subcontractors and assigns from all obligations under the Lease arising prior to
the Forbearance Effective Date whether currently known or unknown, including all actions, claims or
demands that now exist or may hereafter accrue or be alleged against Landlord in any way relating
to the Lease and Tenant’s occupancy of the Premises, and Landlord shall not have any further
liability to Tenant except for any obligations arising after the date of this Amendment with
respect to the Lease. Tenant acknowledges that effective upon the date of this Amendment it has
waived the provisions of Section 1542 of the Civil Code of the State of California, which provides
as follows:

          “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH, IF KNOWN BY HIM, MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

          Tenant’s
Initials: /s/ SS

	6.	 	Intentionally Omitted.

     7. Voluntary Amendment. Each Party represents and warrants to each other Party that it
is represented by legal counsel of its choice, that it has consulted with counsel regarding this
Amendment, that it is fully aware of the terms contained herein and that it has voluntarily and
without coercion or duress of any kind entered into this Amendment.

     8. Tenant Representations and Warranties. As additional consideration for this
Amendment, Tenant hereby represents and warrants to Landlord that:

          8.1 The Lease is in full force and effect.

          8.2 Tenant is in possession of the Premises.

8.3 Monthly Basic Rental has been paid through October 31, 2003.

          8.4 Tenant’s financial statements and supporting documentation delivered to Landlord as
evidence of Tenant’s need for the forbearance contemplated herein are true and correct in all
material respects.

          8.5 To the best of Tenant’s knowledge, there are no uncured defaults on the part of Landlord
or Tenant under the Lease.

     9. Brokers. Landlord and Tenant represent and warrant to one another that it has not
had any dealings with any realtors, brokers or agents in connection with the negotiation of this
Amendment, other than Insignia/ESG, Inc. (now CB Richard Ellis, Inc.), JRT Realty Group and
Montgomery Advisors. Landlord and Tenant shall hold one another harmless from and against any and
all liability, loss, damage, expense, claim, action, demand, suit or obligation arising out of or
relating to a breach by the indemnifying party of such representation or for any compensation,
commission or charges claimed by any realtors, brokers or agents claiming by, through or on
behalf of it with respect to this Amendment.

     10. Miscellaneous. The laws of the State of California shall govern the interpretation
and enforcement of this Amendment. The headings contained in this Amendment are for reference
purposes only and shall not in any way affect the meaning or

 

 

interpretation of this Amendment or any provision hereof. Except as modified herein, all other
terms and conditions of the Lease shall remain unmodified and in full force and effect. Any
conflict of terms and conditions between this Amendment, the Lease or previous amendments, the
provisions of this Amendment shall prevail. This Amendment may not be altered except by an
agreement in writing signed by Landlord and Tenant. This Amendment may be executed in one or more
counterparts, all of which will be considered one and the same agreement, and each of which will be
deemed an original. Except as specifically provided herein, the terms and provisions of the Lease
are reaffirmed and continue in full force and effect. This Amendment shall be binding upon the
heirs, administrators, successors and assigns (as the case may be) of the parties hereto.

          IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 	 
	“Tenant”	 	“Landlord”
	 
	 	 	 	 	 	 
	THOMAS WEISEL PARTNERS
GROUP LLC,
a Delaware limited liability company	 	TEACHERS INSURANCE AND
ANNUITY ASSOCIATION OF AMERICA, for the benefit of its separate Real Estate Account
	 
	 	 	 	 	 	 
	By:

	 	/s/ Shaugn Stanley
	 	By:
	 	/s/ Denise Maxwell
	 

	 	 
	 	 	 	 
	 

	 	Shaugn Stanley      Partner
	 	 	 	Associate Director
	 

	 	[Print Name and Title]
	 	 	 	[Print Name and Title]

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