Document:

Exhibit 10.23

OFFICE
LEASE

BETWEEN

VON KARMAN MICHELSON CORPORATION

AS LANDLORD

AND

QUALITY
SYSTEMS, INC.

 AS TENANT

FOR

18201 VON KARMAN

SUMMARY OF BASIC LEASE INFORMATION

This Summary (the “Summary”) is
hereby incorporated into and made a part of the attached Lease (this Summary
and the Lease to be known collectively as the “Lease”). Each reference
in the Lease to any term of this Summary shall have the meaning as set forth in this Summary. In the event of a conflict
between the terms of this Summary and the Lease, the terms of the Lease shall
prevail. Any capitalized terms used herein and not otherwise defined herein
shall have the meaning as set forth in the Lease.

	
 

	
 

	
 

	
1.

	
Date: 

	
Sept 6 2005 

	
 

	
 

	
 

	
2.

	
Landlord: 

	
Von Karman Michelson
  Corporation, a Delaware Corporation 

	
 

	
 

	
 

	
3.

	
Address of Landlord: 

	
American Realty Advisors 

  801 North Brand Blvd., Suite 800 

  Glendale, California 91203 

  Attention: Stanley Iezman 

  Phone: (818) 545-1152 

  Telecopy: (818) 545-8460 

	
 

	
 

	
 

	
4.

	
Tenant: 

	
Quality Systems, Inc. 

	
 

	
 

	
 

	
5.

	
Address of Tenant: 

	
18191 Von Karman Avenue, Suite
  450 

  Irvine, California 92612 

  Attention: 

	
 

	
 

	

	
 

	
 

	
 

	
Phone: 

	
 

	
 

	

	
 

	
 

	
 

	
Telecopy: 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
(Prior to Commencement Date)
  

	
 

	
 

	
 

	
 

	
 

	
and 

	
 

	
 

	
 

	
 

	
 

	
18191 Von Karman Avenue, Suite
  450 

  Irvine, California 92612 

  Attention: 

	
 

	
 

	

	
 

	
 

	
 

	
Phone: 

	
 

	
 

	

	
 

	
 

	
 

	
Telecopy: 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
(After Commencement Date)
  

	
 

	
 

	
 

	
6.

	
Premises: 

	
Suite No. 1050, in the
  Building  which the parties agree
  contains 3,313 rentable square feet
  and 2,918 usable square feet. The Premises are outlined on the plan attached to
  the Lease as Exhibit A. 

	
 

	
 

	
 

	
7. 

	
Building: 

	
The building of which the
  Premises are a part is located at 18201 Von Karman Avenue, Irvine,
  California as shown on Exhibit B (the “Building”)
  and located on the real property described on Exhibit C (the “Property”).
  The Building is known as “18201 Von Karman.” The parties agree that the Building contains 219,678 rentable square feet.
  

	
 

	
 

	
 

	
8.

	
Term. 

	
 

	
 

	
 

	
 

	
 

	
(a) Lease Term:

	
Sixty-one (61) months. 

(1)

	
 

	
 

	
 

	
 

	
 

	
(b) 

	
Commencement Date:

	
The earliest of (a) the date
  on which Tenant occupies any portion of the Premises and begins conducting
  business therein; (b) the Possession Date; (c) the date of Substantial
  Completion; or (d) the date on which Substantial
  Completion would have occurred but for the occurrence of any Tenant Delays.

The anticipated Possession Date is November 15,
  2005. 

	
 

	
 

	
 

	
 

	
 

	
(c) 

	
Expiration Date:

	
The last day of the month that
  is 61 months after the Commencement
  Date occurs. 

9.       Base Rent:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Lease Month  

	
   

	
Monthly
Base Rent  

	
   

	
Monthly Rental Rate per Rentable
Square Foot  

	
  

	

	
 

	

	
 

	

	
 

	
 

	
1-12

	
 

	
 

	
$

	
7,619.90

	
 

	
$

	
2.30

	
 

	
 

	
13-24

	
 

	
 

	
$

	
7,785.55

	
 

	
$

	
2.35

	
 

	
 

	
25-36

	
 

	
 

	
$

	
7,951.20

	
 

	
$

	
2.40

	
 

	
 

	
37-48

	
 

	
 

	
$

	
8,116.85

	
 

	
$

	
2.45

	
 

	
 

	
49-61

	
 

	
 

	
$

	
8,282.50

	
 

	
$

	
2.50

	
 

Provided that Tenant has
faithfully performed all of the terms and conditions of this Lease, Landlord
agrees to abate Tenant’s obligation to pay Base Rent for the first (1st) month
of the Term (the “Conditional Rent”). Notwithstanding the foregoing, however,
during such abatement period, Tenant shall still be responsible for the payment
of all Additional Rent payable under this Lease. In the event of a Default at
any time during the Term, in addition to any
other remedies to which Landlord may be entitled, Landlord shall be entitled to
recover the Conditional Rent (i.e. the amount of the Conditional Rent
shall not be deemed to have been abated, but shall become immediately due and payable as unpaid Rent earned, but due at the
time of such Default).

	
 

	
 

	
 

	
 

	
10.

	
Additional Rent. 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
Base Year:

	
Calendar year 2006. 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
Tenant’s Proportionate
Share of Operating Costs:

	
1.51%. 

	
 

	
 

	
 

	
 

	
11.

	
Construction: 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
Landlord Supervision Fee:

	
Five percent (5)% of the
  Allowance. 

	
 

	
 

	
 

	
 

	
12.

	
Security Deposit: 

	
$8,381.89.

	
 

	
 

	
 

	
13.

	
Permitted Use: 

	
General office use.

	
 

	
 

	
 

	
14.

	
Parking: 

	
Non-Reserved Parking Spaces: Up to four (4) spaces
  for every 1,000 usable square feet of the
  Premises.

	
 

	
 

	
 

	
 

	
 

	
Initial Monthly Non-Reserved
  Parking Rate: $50.00 per space.

	
 

	
 

	
 

	
15.

	
Brokers: 

	
 

(2)

	
 

	
 

	
 

	
 

	
 

	
(a)

	
Tenant:

	
Kern Olsen Real Estate
  Services
4101 Birch Street, Suite
  150
Newport Beach, CA 92660

  Attention: James Kern 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
Landlord:

	
CB Richard Ellis
2030 Main
  Street, Suite 230
Irvine, CA 92614

  Attention: John Weiner 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
16.

	
Addenda and Exhibits: 

	
The addenda and exhibits listed below are
  incorporated by reference in this Lease.

	
 

	
 

	
 

	
 

	
Addendum #1 – Cancellation Option 

	
 

	
 

	
 

	
 

	
Exhibit A

	
Floor Plan of Premises 

	
 

	
Exhibit B

	
Site Plan of Building 

	
 

	
Exhibit C

	
Legal Description 

	
 

	
Exhibit D

	
Term Certification 

	
 

	
Exhibit E

	
Construction 

	
 

	
Exhibit F

	
Building Services 

	
 

	
Exhibit G

	
Rules and Regulations 

	
 

	
Exhibit H

	
Parking Agreement 

	
	

Landlord and Tenant hereby agree
to the foregoing terms of this Lease Summary.

	
 

	
 

	
 

	
    LANDLORD: 

	
VON KARMAN MICHELSON CORPORATION,
a Delaware corporation

	
 

	
 

	
 

	
 

	
 

	
By: 

	
 

	
 

	

	
 

	
 

	
 

	
Printed Name: Signatory

	
 

	
 

	
 

	
 

	
 

	
Title:
  Signatory 

	
 

	
 

	
 

	
 

	
 

	
Date:
  Signatory 

	
 

	
 

	
 

	
 

	
    TENANT:

	
QUALITY SYSTEMS, INC., a California corporation

	
 

	
 

	
 

	
By: 

	
 

	
 

	

	
 

	
 

	
 

	
Printed
  Name: Paul Holt

	
 

	
 

	
 

	
 

	
 

	
Title: CFO

	
 

	
 

	
 

	
 

	
 

	
Date:
  9/6/05 

	
 

	
 

	
 

	
 

(3)

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
ARTICLE
  1

	
LEASE
  OF PREMISES

	
1
  

	
 

	
 

	
 

	
ARTICLE
  2

	
DEFINITIONS

	
1
  

	
 

	
 

	
 

	
ARTICLE
  3

	
PREMISES
  AND DELIVERY OF POSSESSION

	
6
  

	
 

	
 

	
 

	
ARTICLE
  4

	
RENT

	
7
  

	
 

	
 

	
 

	
ARTICLE
  5

	
SECURITY
  DEPOSIT

	
8
  

	
 

	
 

	
 

	
ARTICLE
  6

	
USE

	
9

	
 

	
 

	
 

	
ARTICLE
  7

	
HAZARDOUS
  MATERIALS

	
9
  

	
 

	
 

	
 

	
ARTICLE
  8

	
SERVICES
  AND UTILITIES

	
10 

	
 

	
 

	
 

	
ARTICLE
  9

	
CONDITION
  OF THE PREMISES

	
12 

	
 

	
 

	
 

	
ARTICLE
  10

	
REPAIRS
  AND MAINTENANCE

	
12 

	
 

	
 

	
 

	
ARTICLE
  11

	
ALTERATIONS
  AND ADDITIONS

	
12 

	
 

	
 

	
 

	
ARTICLE
  12

	
CERTAIN
  RIGHTS RESERVED BY LANDLORD

	
13 

	
 

	
 

	
 

	
ARTICLE
  13

	
RULES
  AND REGULATIONS

	
14 

	
 

	
 

	
 

	
ARTICLE
  14

	
TRANSFERS

	
14 

	
 

	
 

	
 

	
ARTICLE
  15

	
DESTRUCTION
  OR DAMAGE

	
16 

	
 

	
 

	
 

	
ARTICLE
  16

	
EMINENT
  DOMAIN

	
17 

	
 

	
 

	
 

	
ARTICLE
  17

	
INDEMNIFICATION,
  WAIVER RELEASE AND LIMITATION OF LIABILITY

	
17 

	
 

	
 

	
 

	
ARTICLE
  18

	
TENANT’S
  INSURANCE

	
19 

	
 

	
 

	
 

	
ARTICLE
  19

	
DEFAULT

	
20 

	
 

	
 

	
 

	
ARTICLE
  20

	
LANDLORD
  REMEDIES AND DAMAGES

	
21 

	
 

	
 

	
 

	
ARTICLE
  21

	
BANKRUPTCY

	
23 

	
 

	
 

	
 

	
ARTICLE
  22

	
LIEN
  FOR RENT

	
23 

	
 

	
 

	
 

	
ARTICLE
  23

	
HOLDING
  OVER

	
24 

	
 

	
 

	
 

	
ARTICLE
  24

	
SURRENDER
  OF PREMISES

	
24 

	
 

	
 

	
 

	
ARTICLE
  25

	
BROKERAGE
  FEES

	
24 

	
 

	
 

	
 

	
ARTICLE
  26

	
NOTICES

	
24 

	
 

	
 

	
 

	
ARTICLE
  27

	
RELOCATION
  OF PREMISES

	
25

	
 

	
 

	
 

	
ARTICLE
  28

	
SIGNAGE

	
25 

	
 

	
 

	
 

	
ARTICLE
  29

	
LENDER
  PROVISIONS

	
25

	
 

	
 

	
 

	
ARTICLE
  30

	
MISCELLANEOUS

	
26 

-i-

OFFICE
LEASE

THIS OFFICE LEASE (the “Lease”) is made effective as
of ___________________, 2005 by and between
VON KARMAN MICHELSON CORPORATION, a
Delaware corporation, (“Landlord”) and QUALITY SYSTEMS, INC., a California corporation (“Tenant”) with reference
to the
following facts and circumstances.

A.          Landlord is the
owner of the Project, as defined
herein.

B.          The Premises
covered by this Lease are defined on
the Lease Summary and are located in the Building, as defined
on the Lease Summary.

C.          American Realty
Advisors, Inc. (“Advisor”) is the
real estate investment manager for Landlord.

D.          The parties desire
to enter into this Lease, all
on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the foregoing
facts and circumstances, the mutual covenants and promises contained herein and after good and valuable consideration,
the receipt and sufficiency of which are acknowledged by each of the parties, the parties do hereby agree to the
following:

ARTICLE 1

LEASE OF PREMISES

In consideration of the Rent and
the provisions of this Lease, Landlord leases to Tenant and Tenant leases from
Landlord the Premises. In addition,
Tenant shall have the non-exclusive right (unless otherwise provided herein) in
common with Landlord, other tenants,
subtenants, and invitees to use the Common Areas.

ARTICLE 2 
DEFINITIONS

As used in this Lease, the
following terms shall have the following definitions:

2.1          Additional
Rent. All costs and expenses that Tenant assumes or agrees to pay to
Landlord under this Lease other
than Base Rent.

2.2          Affiliate.
An entity that is controlled by, controls, or is under common control with a
party. “Control” shall mean
the ownership, directly or indirectly, of
at least fifty-one percent (51%) of the voting securities of, or possession of
the right
to vote, in the ordinary direction of
its affairs, of at least fifty-one percent (51%) of the voting interest in any
entity.

2.3          Bankruptcy
Code. Title 11 of the United States Code, as amended from time to time.

2.4          Base
Rent. As set forth on the Lease Summary.

2.5          Base Year.
As set forth on the Lease Summary.

2.6          Building
Services. As set forth in Exhibit F. 

2.7          Building
Systems. Any plant, machinery, transformers, duct work,
cable, wires, and other equipment and facilities,
and any systems designed to supply heat, ventilation, air conditioning
and humidity or any other services or utilities, or
comprising or serving as any component or
portion of the electrical, gas, steam, plumbing, sprinkler, communications,
alarm,
security, or fire/life safety systems
or equipment, any Telecommunications System serving the Building and any other
mechanical, electrical, electronic,
computer or other systems or equipment that serves the Building in whole or in
part.

2.8          Business
Days.  Days other than Saturdays,
Sundays and Holidays. If any item must be accomplished or delivered
hereunder on a day that is not a Business
Day, it shall be timely to accomplish or deliver the same on the next following
Business Day.

2.9          Business
Hours. As set forth in Exhibit F. 

2.10       Commencement
Date. As set forth on the Lease Summary.

- 1 -

2.11          Common
Areas. The building lobbies, common corridors, restrooms, passageways,
elevators, stairways, unrestricted parking areas, entrances, exits,
driveways and walkways, loading facilities, freight elevators, terraces and landscaped areas in and around the Building, and
other generally understood public or common areas in the Project.

2.12          Environmental Laws. All
federal, state and local laws, ordinances,
regulations, and standards regulating or
controlling hazardous wastes or
hazardous substances, including, without limitation, the Comprehensive
Environmental Response, Compensation, and Liability
Act of 1980, as amended, 42 U.S.C. 9601, et seq.; the Hazardous Material
Transportation Act, 49 U.S.C. 1801
et seq.; and the Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq.  

2.13          Expiration
Date. As set forth on the Lease Summary, unless otherwise sooner terminated
in accordance with the
provisions of this Lease.

2.14          Guarantor(s).
The parties set forth on the Lease Summary and any other party liable for or
required by Landlord to
guaranty Tenant’s obligations under the Lease.

2.15          Hazardous
Materials. Any hazardous waste or hazardous substance as
defined in any federal, state, county,
municipal, or local statute,
ordinance, rule, or regulation applicable to the Project, including, without
limitation, the
Environmental Laws. “Hazardous
Materials” shall also include asbestos or asbestos-containing materials, radon
gas,
petroleum, or petroleum fractions,
urea formaldehyde foam insulation, transformers containing levels of
polychlorinated
biphenyls greater than 50 parts per
million, medical waste, electromagnetic fields, mold and chemicals known to
cause cancer
or reproductive toxicity, whether or
not defined as a hazardous waste or hazardous substance in any statute,
ordinance, rule or
regulation.

2.16          Holidays.
All federally observed holidays, including New Year’s Day, President’s Day,
Martin Luther King, Jr. Day, Memorial
Day, Independence Day, Labor Day, Veteran’s Day, Thanksgiving Day and Christmas
Day.

2.17          Insurance. All
costs incurred by Landlord for insurance with respect to the
Project, including but not limited to
public liability, property damage,
earthquake, flood, pollution, mold, terrorism and property insurance with such
limits and in
such amounts as may be determined
from time to time by Landlord or its lenders.

2.18          Interest Rate.
The average prime loan rate published by the board of governors of the
Federal Reserve System of the
United States, as the same may change
from time to time, plus four percent (4%) per annum, but not in excess of the
maximum rate, if any, allowed by Law
for the transaction on which interest is being calculated.

2.19          Landlord Related
Parties. Landlord, Landlord’s Affiliates, and the
members, principals, beneficiaries, partners,
trustees, shareholders, directors,
officers, employees, mortgagees, investment managers, property managers,
brokers,
contractors, attorneys, and agents of
Landlord and Landlord’s Affiliates, and the successors of such parties.

2.20          Landlord
Work. The work to be performed by Landlord, if any, set forth in Exhibit
E-l. 

2.21          Law
or Laws. All federal, state, county and local governmental and municipal
laws, statutes, ordinances, rules,
regulations, requirements, codes, decrees, orders, and decisions by courts and
cases, when the decisions are considered
binding precedent in the State, and decisions
of federal courts applying the Law of the State; including but not limited to
The
Americans With Disabilities Act of
1990 (42 U.S.C. § 12101 et seq.) and any regulations and guidelines promulgated
thereunder, as all of the same may be
amended and supplemented from time to time. 

2.22          Lease
Year. Each twelve (12) month period or portion thereof during the Term,
commencing with the Commencement
Date, without regard to calendar years.

2.23          Mortgagee.
The lessor under any present and future ground or underlying lease of the
Property and the holder of any
mortgage, deed to secure debt or trust deed now or hereafter in force against
the Property or the Building.

2.24          Operating
Costs. All costs incurred by Landlord in the ownership, management,
maintenance, repair, replacement, improvement,
alteration and operation of the Building and Project, including, without
limitation, the following: (a) utilities; (b) supplies, tools, equipment and
materials used in the operation, repair and maintenance of the Building or the
Project; (c) landscaping; (d) parking area repair, restoration, and
maintenance, including, but not limited to, resurfacing, repainting, re-striping, and cleaning; (e) reasonable reserves
for operation, maintenance and repair of the Project and for covering uninsured
damage and liability claims relating
to the Project, including, without limitation, deductible amounts (provided
that if Landlord incurs an expense
for which a reserve is held, Landlord shall apply the applicable reserves to
the expense prior to including the
balance of the expense in Operating Costs); (f) fees, charges and other costs,
including, without limitation,

- 2 -

reasonable consulting fees,
legal fees and accounting fees, of all contractors engaged by Landlord or
otherwise reasonably incurred by Landlord in connection with the management,
operation, maintenance and repair of the Building or the Project; (g) compensation (including, without limitation,
employment taxes and fringe benefits) of all persons who perform duties in connection with the operation, maintenance,
repair, or overhaul of the Building or the Project, and equipment,
improvements, and facilities located within the Project; (h) operation
and maintenance of a room for delivery and distribution of mail to tenants of the Building or the Project as
required by the U. S. Postal Service (including, without limitation, an amount
equal to the fair market rental value of the mail room premises); (i) payments
under any easement, license, operating agreement, declaration, restrictive covenant, underlying or
ground lease (excluding rent), or instrument pertaining to the sharing of costs
by the Building or the Project; (j) operation, repair, maintenance and
replacement of all Building Systems, including, without limitation, the
cost to replace or retrofit as required by Laws enacted or applied to the
Building after the date of this Lease; (k)
janitorial service, alarm and security service, window cleaning, trash removal;
(1) repair and replacement of building standard surfaces, including but
not limited to wall and floor coverings, ceiling tiles. window coverings and
fixtures; (m) maintenance and replacement
of curbs and walkways; (n) repair to and replacement of the roof; (o) Building
signage and directories; (p) management of the Building or the Project, whether
by Landlord or an independent contractor (including, without limitation,
an amount equal to the fair market value of any on-site manager’s office); (q)
rental expenses for (or a reasonable depreciation allowance on) personal
property used in maintenance, operation or repair of the Building or the
Project; (r) licenses, certificates, permits and inspections and the cost of
contesting the validity or applicability of any governmental enactments that may affect Operating Costs; (s) the costs
incurred in connection with the implementation and operation of any
governmentally mandated transportation system management program or similar
program; (t) any costs, expenditures,
or charges (whether capitalized or not) required by any governmental or
quasi-governmental authority; and (u) amortization of capital expenses
(including, without limitation, financing costs) that are (A) required, after
the date of this Lease, by a governmental
entity for energy conservation, handicapped requirements, or life safety
purposes, or (B) made by Landlord to reduce Operating Costs; provided that such
cost shall be amortized (including interest on the unamortized cost) over
its useful life as Landlord shall reasonably determine. Notwithstanding the
foregoing, for purposes of this Lease, Operating
Costs shall not include:

          2.24.1          Costs
(including, without limitation, permit,
license and inspection costs) incurred in renovating or
otherwise improving, decorating or
redecorating rentable space for other tenants or vacant rentable space;

          2.24.2          Utilities
or services sold to Tenant or others for
which Landlord is entitled to and actually receives
reimbursement (other than through any
operating cost reimbursement provision similar to the provisions set forth in
this
Lease);

          2.24.3          Except
as otherwise specifically provided in this
Section, alterations to the Building that are considered
capital improvements and replacements
of such capital improvements under sound real estate management principles;

          2.24.4          Depreciation
and amortization, except on
materials, small tools and supplies purchased by Landlord to
enable Landlord to supply services Landlord might otherwise contract for
with a third party, where such depreciation and
amortization would otherwise have been
included in the charge for such third party services, all as determined in
accordance
with sound real estate management
principles;

          2.24.5          Services
or other benefits that are not available to Tenant, but which are provided to
other tenants of the
Building;

          2.24.6          Overhead
or any profit increment paid to Landlord or to subsidiaries or affiliates of
Landlord for services in
or in connection with the Building to the extent the same exceeds the
cost of such services that could be obtained from
equally qualified third parties on a
competitive basis or at market rates;

          2.24.7          Except
as otherwise specifically provided in this
Section, interest on debt or amortization on any
mortgages, other charges, costs and
expenses payable under any mortgage, if any, and costs for financing and
refinancing the
Project;

          2.24.8          Ground
rents;

          2.24.9          Compensation
and employee benefits paid to clerks,
attendants or other persons in a commercial
concession operated by Landlord,
except the Building parking facility;

          2.24.10        Rentals
and other related expenses incurred in leasing heat, ventilation, and
air-conditioning, elevators or
other equipment ordinarily considered to be of a capital nature, except
equipment used (a) in providing janitorial or similar
services and which is not affixed to
the Building, and (b) in case of emergency;

- 3 -

          2.24.11          Electrical
power for which Tenant directly contracts with and pays a local public service
company;

          2.24.12          Marketing
costs, including, without limitation,
leasing commissions, attorneys’ fees in connection
with the
negotiation and preparation of
letters, deal memos, letters of intent, leases, subleases and/or assignments,
space planning
costs, and other costs and expenses
incurred in connection with lease, sublease or assignment negotiations and
transactions
with present or prospective tenants
or other occupants of the Building, including, without limitation, attorneys’
fees and other
costs and expenditures incurred in
connection with disputes with present or prospective tenants or other occupants
of the
Building; 

          2.24.13          Costs
covered by insurance, to the extent of the
insurance proceeds actually received by Landlord;

          2.24.14          Costs
covered by warranties, to the extent of the
amount actually paid under the warranty;

          2.24.15          Any
service provided directly to and paid directly by any tenant; and

          2.24.16          Wages
and benefits of any employee who does not devote substantially all of his or her
employed time to
the Building unless such wages and
benefits are prorated to reflect time spent on operating and managing the
Building vis-a-vis time spent on matters unrelated to operating and managing the Building.

2.25          Permitted Use. As set forth on the Lease
Summary.

2.26          Permitted
Transfer. The transfer of ownership interests in a publicly traded entity,
a transfer in connection with a
sale of substantially all of the assets of
Tenant as a going concern, a merger or consolidation of Tenant with another
entity,
and an assignment or subletting of
all or a portion of the Premises to an Affiliate of Tenant.

2.27          Possession Date. The date on which Landlord
tenders possession of the Premises to
Tenant with the Landlord Work
Substantially Completed.

2.28          Project. The Property, the Building and any
other improvements on the
Property.

2.29          Project Operating Costs. Operating Costs,
Taxes and Insurance. If at any
time during the Term the Project
Operating Costs are not based on a
completed and fully assessed Project having at least ninety-five percent (95%)
of the
Rentable Area occupied, then Project
Operating Costs shall be adjusted by Landlord in order reasonably to
approximate the
variable components of Operating Expenses for such year or applicable
portion thereof, employing sound accounting and
management principles, that would have been
payable if the Project were completed, fully assessed and at least ninety-five
percent (95%) occupied.

2.30          Rent.
Base Rent and Additional Rent.

2.31          Rentable Area.

          2.31.1          In
the case of a floor leased to a single tenant, Rentable Area shall be the total
square footage of all floor
area measured from the inside surface of the
exterior glass line of the Building to the inside surface of the opposite
exterior
glass line, excluding only Service Areas
and General Common Areas (the “USF” for such single-tenant floor), plus an
allocation of the square footage of
the General Common Areas.

          2.31.2          In
the case of a floor leased to more than one
tenant, Rentable Area shall be the total square footage of all
floor areas within the inside
surface of the exterior glass line of the Building enclosing the Premises and
measured to the mid-point of the demising walls,
excluding only Service Areas (the “USF” for such multi-tenant floor), plus an
allocation of the
square footage of the General Common
Areas and an allocation of the square footage of the On-Floor Common Areas.

          2.31.3          “Service
Areas” shall mean the areas within (and
measured from the exterior surface of the interior walls
enclosing, or from the inside surface
of the exterior glass or wall enclosing, as the case may be) Building stairs,
elevator
shafts, flues, vents, stacks, pipe
shafts and vertical ducts. Areas for the specific use of Tenant or other
tenants of the Building
or installed at the request of
Tenant, such as special stairs or elevators, are not included within the
definition of Service
Areas.

          2.31.4          “General
Common Areas” shall mean those areas
within (and measured from the midpoint of the walls or
from the inside surface of the
exterior glass enclosing) the Building’s elevator machine rooms, main
mechanical rooms,
electrical rooms, and public lobbies, engineering and cleaning staging areas,
and other areas not leased or held for lease

- 4 -

within the Building, but which are reasonably
necessary for the proper utilization of the Building or to provide customary services to the Building, plus an allocation of
any On-Floor Common Areas to the General Common Areas on the floor for floors
that contain General Common Areas. The allocation of the square footage of the
General Common Areas shall be equal to the
total square footage of the General Common Areas multiplied by a fraction, the
numerator of which is the USF of the Premises and the denominator of which is
the total of all USF contained in the Building.

          2.31.5          “On-Floor
Common Areas” shall mean the total
square footage of all areas within (and measured from the
midpoint of the walls enclosing) public corridors, elevator foyers, rest
rooms, mechanical rooms, janitor closets, telephone
and equipment rooms, and other similar facilities for the use of all tenants on
the floor on which the Premises are located.
The allocation of the square footage of the
On-Floor Common Areas shall be equal to the total On-Floor Common Areas on
said floor multiplied by a fraction,
the numerator of which is the USF of the portion of the Premises located on
said floor and
the denominator of which is the
total of all USF on said floor.

          2.31.6          Except
as provided expressly to the contrary
herein, Landlord reserves the right to alter the Project, and in
such event, the Rentable Area of the Premises and the Project could
likewise be revised. The Rentable Area of the Project
may from time to time be subject to recalculation, as determined by Landlord
and applied on a consistent basis throughout
the Project.

2.32          Rules
and Regulations. As set forth
in Exhibit G. 

2.33          State.
The state in which the Project is located.

2.34          Substantial Completion or Substantially
Completed. As defined in the Exhibit E. 

2.35          Taxes.
All taxes, assessments, whether special or general, water and sewer charges,
and other similar government
charges levied on or attributable to the
Building or Project or their operation, including, without limitation (a) real
property
taxes or assessments levied or
assessed against the Building or Project; (b) assessments or charges levied or
assessed against
the Building or Project by any
redevelopment agency, municipality or governmental or quasi-governmental
agency, including
but not limited to any assessments or
the Project’s contribution towards a governmental or private cost-sharing
agreement for
the purpose of augmenting or
improving the quality of services and amenities normally provided by
governmental agencies;
(c) any tax, assessment, levy,
license fee or charge measured by or based, in whole or in part, by Rent
received from the
leasing of the Premises, the Building, or the Project, or any portions
thereof; (d) general or special, ad valorem or specific,
excise, capital levy, or other tax,
assessment, levy, or charge directly on the Rent received under this Lease or
on the rent
received under any other leases of
space in the Building or Project; (e) any transfer, transaction, or similar
tax, assessment,
levy, or charge based directly or indirectly upon the transaction
represented by this Lease or other leases in the Project; (f)
any occupancy, use, per capita, or other
tax, assessment, levy, or charge based directly or indirectly upon the use or
occupancy of the Premises or other
premises within the Building or the Project; (g) interest on installments as
charged by the
taxing authority; and (h) the
reasonable costs and expenses of any contest or protest of Taxes prosecuted by
Landlord,
including, without limitation, any appraisal fees and attorneys’ fees.
Taxes shall not include (i) any net income, franchise,
capital stock, estate of inheritance taxes
imposed by the State or Federal Government or their agencies, branches, or
departments, and (ii) tax penalties,
interest or late charges incurred as a result of Landlord’s failure to make
timely payment
of Taxes. Tenant hereby waives, and assigns, transfers and conveys to Landlord,
any and all rights to contest or protest any
Taxes. Taxes for any calendar year shall only include those taxes or
installments of assessments that become due and
payable during said year. Landlord shall pay assessments in installments over
the longest period of time permitted by the
taxing authority.

2.36          Telecommunications Systems. All
telecommunications systems including but not
limited to voice, video, data, and
any other telecommunications services provided over wire, fiber optic,
microwave, wireless and any other transmission
systems, for part or all of any
telecommunications within the Building or from the Building to any other
location.

2.37          Tenant Delays. As defined in Exhibit E. 

2.38          Tenant Related Parties. Tenant, its agents,
contractors, subcontractors,
employees, invitees, subtenants, transferees,
and any other party claiming by, through or under Tenant.

2.39          Tenant’s
Cost Allocation. The sum of the following: (a) Tenant’s Proportionate Share
of Operating Costs for the
year in question in excess of Operating
Costs incurred during the Base Year; (b) Tenant’s Proportionate Share of Taxes
for
the year in question in excess of Taxes incurred during the Base Year; and (c)
Tenant’s Proportionate Share of Insurance for
the year in question in excess of Insurance
incurred during the Base Year.

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2.40          Tenant’s Property. All movable
partitions, business and trade
fixtures, machinery and equipment, communications
equipment, and office equipment located in the Premises and acquired by
or for the account of Tenant, without expense to
Landlord, that can be removed without
damage to the Building, and all furniture, furnishings, and other articles of
movable
personal property owned by Tenant and
located in the Premises.

2.41          Tenant’s Proportionate Share. As set
forth on the Lease Summary. Such share is
a fraction, the numerator of which
is the Rentable Area of the Premises,
and the denominator of which is the Rentable Area of the Project. Tenant’s
Proportionate Share is subject to
recalculation in accordance with changes in the Rentable Area of the Premises
or the
Project. Landlord reserves the right to create pools of similarly situated
tenants for the purpose of allocating certain
Operating Costs that benefit only the tenants in such pool (“Specialized
Operating Costs”). For the purpose of allocating
Specialized Operating Costs for any pool of
which Tenant is a member, Tenant’s Proportionate Share shall be a fraction, the
numerator of which shall be the
Rentable Area of the Premises, and the denominator of which shall be the
Rentable Area of
the premises of all tenants in such
pool.

2.42          Term.
As set forth on the Lease Summary, as the same may be extended from time to
time.

2.43          Transfer. An assignment, mortgage, pledge,
hypothecation, encumbrance, lien or
other transfer of this Lease or any
interest hereunder, a transfer by operation of law, a sublease of the Premises
or any part thereof, or the use of the Premises by
any party other than Tenant and its
employees. “Transfer” shall also include (a) if Tenant is a partnership or
limited liability
company, the withdrawal or change, voluntary, involuntary or by operation of
law, of twenty-five percent (25%) or more of
the partners or members, or transfer of twenty-five percent (25%) or more of
partnership or membership interests, within a
twelve (12)-month period, or the dissolution of the partnership or company
without immediate reconstitution thereof, (b) if
Tenant is a closely held corporation (i.e., whose stock is not publicly
held and not traded through an exchange or over the
counter), the dissolution, merger,
consolidation or other reorganization of Tenant, the sale or other transfer of
more than an
aggregate of twenty-five percent
(25%) of the voting shares of Tenant (other than to immediate family members by
reason of
gift or death), within a twelve
(12)-month period; and (c) the sale, mortgage, hypothecation or pledge of more
than an
aggregate of twenty-five percent
(25%) of the value of the unencumbered assets of Tenant within a twelve (12)
month period.
Notwithstanding the foregoing a “Transfer” shall not include a “Permitted
Transfer” provided that (A) the transferee assumes,
in full, the obligations of Tenant
under this Lease; (B) Tenant remains fully liable under this Lease; (C) the use
of the
Premises remains unchanged; (D)
Landlord shall have received an executed copy of all documentation effecting
such transfer
on or before its effective date; and (E) the same is not a subterfuge by Tenant
to avoid its obligations under this Lease.

2.44          Transferee. Any person to whom any Transfer
is made.

ARTICLE 3

PREMISES AND DELIVERY OF
POSSESSION

3.1          Delivery of
Possession. Except as otherwise provided herein, Landlord
shall use commercially reasonable efforts to
deliver possession of Premises on or
before the anticipated Possession Date set forth on the Lease Summary. If for
any
reason, Landlord is delayed in
delivering possession of the Premises to Tenant, Landlord shall not be subject
to any liability
for such failure, and the validity of this
Lease shall not be impaired, but (except in the case of Tenant Delays) the
Commencement Date shall be extended
for the period of such delay. Notwithstanding the foregoing, provided no
Default has
occurred, if Landlord does not cause
the Possession Date to occur within one hundred eighty (180) days following the
anticipated Possession Date as set
forth on the Lease Summary (the “Outside Date”), then the sole remedy of Tenant
for such
failure shall be the right to deliver a notice to Landlord (a “Termination
Notice”) electing to terminate this Lease effective
upon the date occurring fifteen (15)
Business Days following receipt by Landlord of the Termination Notice (the
“Effective
Date”). The Termination Notice must
be delivered by Tenant to Landlord, if at all, not earlier than the Outside
Date nor later
than fifteen (15) Business Days after
the Outside Date. Provided however, if the Possession Date occurs prior to the
Effective Date, the termination shall
be nullified and this Lease shall remain in full force and effect. Upon any
termination as
set forth in this Section, Landlord and Tenant shall be relieved from
any and all liability to each other resulting hereunder.
Tenant’s right to terminate this Lease, as set forth in this Section, shall be
Tenant’s sole and exclusive remedy at law or in
equity for the failure of the Possession
Date to occur by the Outside Date. The Outside Date shall be extended to the
extent of
any delays beyond the reasonable control of Landlord, including force majeure
delays, and Tenant Delays.

3.2          Commencement
Date. If the Commencement Date is not fixed on the Lease Summary, once the
Commencement
Date is fixed, within ten (10) days
following request by Landlord, Tenant will execute and deliver to Landlord a
certificate
substantially in the form of Exhibit D attached hereto and made a part hereof,
indicating thereon any exceptions thereto that
may exist at that time. Failure of
Tenant to execute and deliver such certificate shall constitute binding and
conclusive 

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acceptance of the Premises and
acknowledgment by Tenant that the statements included in Exhibit D, as prepared
by Landlord, are true and correct. 

3.3          Size
of Premises. The Rentable Area of the Premises will be deemed for all
purposes to be as set forth on the Lease Summary.

ARTICLE 4 

RENT

Tenant agrees to pay to Landlord all Rent payable
hereunder, without set-off or deduction, in lawful money of the United States of America. Tenant shall pay the Rent as
follows:

4.1          Base
Rent. Tenant shall pay to Landlord the Base Rent without notice or demand,
in installments due and payable
in advance on the first day of each
calendar month during the Term. Along with and in addition to each monthly Base
Rent
payment under the Lease, Tenant
shall pay to Landlord the sales or privilege tax required under applicable Law. In the event
of any fractional calendar month, Tenant shall pay for each day in such partial
month a rental equal to 1/30 of the Base Rent.
Concurrent with the execution of
this Lease, Tenant will deliver to Landlord the first month’s Base Rent.

4.2          Tenant’s
Cost Allocation. For each calendar year after the Base Year, in
addition to the Base Rent and all other
payments due under this Lease, Tenant
shall pay Tenant’s Cost Allocation, as follows:

          4.2.1          Estimated Payments.
Tenant shall pay Landlord’s reasonable estimate
of Tenant’s Cost Allocation for each
year (the “Estimated Payment”) in
advance, in monthly installments, commencing on the first (1st) day of the
month
following the month in which Landlord
notifies Tenant of the amount it is to pay hereunder and continuing until the
first (1st)
day of the month following the month
in which Landlord notifies Tenant of any revised Estimated Payment. Landlord
shall
estimate from time to time the amount
of the Tenant’s Cost Allocation for each year and then make an adjustment in
the
following year based on the actual
Tenant’s Cost Allocation incurred for the prior year. In the event of any
fractional
calendar month, Tenant shall pay for
each day in such partial month a rental equal to 1/30 of the Estimated Payment.

          4.2.2          Reconciliation.
Within a reasonable period after the end of each calendar year,
Landlord shall deliver to
Tenant a statement (the “Statement”) setting forth Tenant’s Cost
Allocation for such year. If Tenant’s Cost Allocation for
such year exceeds the total of the
Estimated Payment made by Tenant for each year, Tenant shall pay Landlord the
amount of
the deficiency within ten (10) days
of the receipt of the Statement. If the Estimated Payment made by Tenant exceeds
Tenant’s Cost Allocation for such
year, then Landlord shall credit against Tenant’s next ensuing monthly
installment(s) of
Project Operating Costs an amount
equal to the difference until the credit is exhausted. If a credit is due from Landlord after
the Expiration Date, Landlord shall pay Tenant the amount of the credit.
The obligations of Tenant and Landlord to make
payments required under this Section shall survive the expiration or
termination of this Lease, and Landlord’s failure to
deliver the Statement shall not be deemed a
waiver of Landlord’s right to make the adjustments set forth herein. 

          4.2.3          Landlord’s
Records. Landlord shall maintain records respecting
Project Operating Costs and determine the
same in accordance with sound accounting and management practices, consistently
applied. Tenant or its representative shall
have the right to examine such
records upon reasonable prior notice specifying which records Tenant desires to
examine,
during normal business hours at the place or places where such records
are normally kept, by sending such notice no later
than sixty (60) days following the
furnishing of the Statement. Tenant may take exception to matters included in
Project
Operating Costs or Landlord’s
computation of Tenant’s Proportionate Share by sending notice specifying such
exception and
the reasons therefor to Landlord no
later than thirty (30) days after Landlord makes such records available for
examination.
If Tenant takes exception to any matter contained in the Statement as provided
herein, Landlord shall refer the matter to an
independent certified public accountant of Landlord’s choice, subject to
Tenant’s reasonable approval, whose certification as
to the proper amount shall be final
and conclusive as between Landlord and Tenant. Tenant shall promptly pay the
cost of
such certification, including,
without limitation, any reasonable attorneys’ fees incurred by Landlord in
connection therewith,
unless such certification determines that Tenant was overbilled by more
than four percent (4%) in the aggregate for the
applicable year. Pending resolution of any such exceptions in the foregoing
manner, Tenant shall continue paying Project
Operating Costs in the amounts determined by
Landlord, subject to adjustment after any such exceptions are so resolved.
Tenant acknowledges that any information gathered through an audit is
strictly confidential and shall not disclose such
confidential information to any person or entity other than Tenant’s financial
and legal consultants. The Statement shall be
considered final, except as to matters to
which exception is taken in the manner and within the times specified herein.

4.3          Other
Taxes Payable by Tenant. In addition to the Base Rent and any other charges
to be paid by Tenant hereunder, Tenant shall, as an element of Rent, reimburse
Landlord upon demand for any and all taxes payable by Landlord (other than

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net income taxes) that are not otherwise reimbursable
under this Lease, whether or not now customary or within the contemplation of the parties, where such taxes
are upon, measured by, or reasonably attributable to (a) the cost or value of Tenant’s
equipment, furniture, fixtures, and other personal property located at the
Premises, or the cost or value of any leasehold
improvements made in or to the Premises by or for Tenant, regardless of whether
title to such improvements is held by
Tenant or Landlord; or (b) this transaction or any document to which Tenant is
a party creating or transferring an interest or an estate in the Premises, including but not limited to any sales tax
on the Rent paid hereunder. If it becomes unlawful for Tenant to reimburse Landlord for any costs as
required under this Lease, the Base Rent shall be revised to net Landlord the same net Rent after imposition of any tax or other
charge upon Landlord as would have been payable to Landlord but for the
reimbursement being unlawful.

4.4          Place of
Payment. All Rent shall be paid at the office of
Landlord set forth on the Lease Summary or at such other
place as Landlord may designate.

4.5          Interest and Late
Charges. If Tenant fails to pay any Rent when due, after
giving effect to any applicable grace
periods, the unpaid amounts shall
bear interest at the Interest Rate. Tenant acknowledges that the late payment
of any Rent
will cause Landlord to incur costs and
expenses not contemplated under this Lease, including, without limitation,
administrative and collection costs
and processing and accounting expenses, the exact amount of which is extremely difficult
to ascertain. Therefore, in addition to interest, if any such payment is not
received by Landlord within five (5) Business Days
from when due, Tenant shall pay
Landlord a late charge equal to five percent (5%) of such payment, plus any
reasonable
attorneys’ fees incurred by Landlord
by reason of Tenant’s failure to pay Rent when due. Landlord and Tenant agree
that this
late charge represents a reasonable
estimate of such costs and expenses and is fair compensation to Landlord for
loss
resulting from Tenant’s nonpayment. The late charge shall be deemed
Additional Rent and the right to require it shall be in
addition to all of Landlord’s other rights
and remedies hereunder or at law and shall not be construed as liquidated
damages
or as limiting Landlord’s remedies in
any manner. In addition, any check returned by the bank for any reason will be
considered late and will be subject
to all late charges, plus a Fifty Dollar ($50.00) fee. After two (2) returned
checks in any
twelve (12) month period, Landlord
will have the right to receive payment by a cashier’s check or money order.
Nothing
contained herein shall be construed as to compel Landlord to accept any
payment of Rent in arrears or late charges should
Landlord elect to apply its rights and
remedies available under this Lease or at law or in equity in the event of a
Default.

ARTICLE 5 

SECURITY DEPOSIT

Upon Tenant’s execution of this Lease, Tenant shall deposit with
Landlord the Security Deposit, as shown on the Lease Summary. The Security Deposit shall serve as security for the prompt,
full, and faithful performance by Tenant of the terms and provisions of
this Lease. In the event that Tenant is in Default hereunder, or in the event
that Tenant owes any amounts to Landlord upon the expiration of this Lease,
Landlord may use or apply the whole or any part of the Security Deposit for the
payment of Tenant’s obligations hereunder. The use or application of the
Security Deposit or any portion thereof shall not prevent Landlord from
exercising any other right or remedy provided hereunder or under any Law and
shall not be construed as liquidated
damages. In the event the Security Deposit is reduced by such use or
application, Tenant shall deposit with Landlord, within ten (10) days
after notice, an amount sufficient to restore the full amount of the Security
Deposit. Landlord shall not be required to keep the Security Deposit separate
from Landlord’s general funds or pay interest on
the Security Deposit. Provided Tenant has performed all of its obligations
under this Lease, any remaining portion of the Security Deposit shall be
returned to Tenant within thirty (30) days subsequent to the Expiration Date or
such earlier period as may be required under
California Civil Code Section 1950.7 or any successor statute. If the Premises
shall be expanded at any time, or if
the Term shall be extended at any increased rate of Rent, the Security Deposit
shall thereupon be proportionately increased. No trust or fiduciary
relationship is created herein between Landlord and Tenant with respect to the Security Deposit. If Landlord transfers the
Premises during the Term of this Lease, Landlord may pay the Security Deposit to Landlord’s successor-in-interest in
accordance with California Civil Code Section 1950.7 or any successor statute, in
which event the transferring Landlord shall be released from all liability for
the return of the Security Deposit. Tenant waives the provisions of California
Civil Code Section 1950.7, and all other provisions of Law now in force or that
become in force after the date of execution of this Lease, that provide that
Landlord may claim from a security deposit only those sums reasonably necessary
to remedy defaults in the payment of Rent, to repair damage caused by Tenant,
or to clean the Premises. Landlord and Tenant
agree that Landlord may, in addition, claim those sums reasonably necessary to
compensate Landlord for any other foreseeable or unforeseeable loss or
damage caused by the act or omission of Tenant or Tenant’s officers, agents, employees, independent
contractors or invitees.

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ARTICLE
6 

USE

6.1          Permitted
Use.  Tenant shall use the Premises solely for the Permitted Use as shown on
the Lease Summary, and for no other
purpose without Landlord’s consent. Tenant shall comply with all recorded
covenants, conditions, and restrictions, and the provisions of all ground or underlying leases, now or hereafter
affecting the Project. Tenant shall not (a) do or permit anything to be
done in or about the Premises that would in any way obstruct or interfere with
the rights of other tenants or occupants of
the Building or Project or violate any restrictions or exclusive uses set forth
in any other tenants’ leases; (b) injure,
annoy or interfere with the business of any other tenants or occupants of the
Project or any of their invitees; (c) cause, maintain or permit any
nuisance arising out of Tenant’s use or occupancy of the Premises; or (d)
commit or suffer to be committed any waste
in or upon the Premises, the Building or the Project.

6.2          Compliance
with Law.  Tenant has been provided an opportunity to
inspect the Premises, the Building and the Project to a degree
sufficient to determine whether or not the same, in their condition as of the
date hereof, violate any applicable Law.
Tenant further acknowledges and agrees that, except as may otherwise be
specifically provided in this Lease,
Landlord has made no representation or warranty as to whether the Premises, the
Building or the Project conforms to the requirements of Law. After
completion of Landlord Work, Tenant shall be responsible for compliance of the
Premises with applicable Law and shall bear
all costs necessary to maintain the Premises in compliance with Law, including,
without limitation, structural work, if any. Tenant shall also be
responsible for the cost of any alterations to other portions of the Building or the Project necessitated by any
alterations to the Premises or any change in use of the Premises after
completion of the Landlord Work. Tenant shall not use or occupy the
Premises in violation of any Law or the certificate of occupancy issued for the Building or the Project and shall,
upon notice from Landlord, immediately discontinue any use of the Premises that
is declared by any governmental authority having jurisdiction to be a violation
of Law or the certificate of occupancy. A judgment of any court of competent jurisdiction or the admission by
Tenant in any action or proceeding against Tenant that Tenant has violated any such Laws in the use of
the Premises shall be deemed to be a conclusive determination of that fact as
between Landlord and Tenant. Should any obligation be imposed by Law, then
Tenant agrees, at its sole cost and expense, to comply promptly with such obligations to the extent the same relate to
the Premises or Tenant’s use of the Premises, the Building or the Project.

6.3          Effect
on Landlord’s Insurance.  Tenant shall not do or permit to be done anything
that will invalidate or increase the cost of
any property coverage, or other insurance policy covering the Building, the
Project or any property located therein. Tenant shall promptly, upon
demand, reimburse Landlord for any additional premium charged for such policy
by reason of Tenant’s failure to comply
with the provisions of this Section.

6.4          Transportation
Management.  Tenant shall comply with all present or future
programs intended to manage parking, transportation
or traffic in and around the Building, and in connection therewith, Tenant
shall take responsible action for the transportation planning and
management of all employees located at the Premises by working directly with
Landlord, any governmental transportation
management organization or any other transportation-related committees or
entities. Such programs may include,
without limitation: (a) restrictions on the number of peak-hour vehicle trips
generated by Tenant; (b) increased
vehicle occupancy; (c) implementation of an in-house ridesharing program and an
employee transportation coordinator; (d) working with employees and any
Building or area-wide ridesharing program manager; (e) instituting employer-sponsored
incentives (financial or in-kind) to encourage employees to rideshare; and (f)
utilizing flexible work shifts for
employees. Unless required by law, Tenant shall not be required to participate in such programs if the same would
materially interfere with the operation of Tenant’s business, or would result
in a material expense to Tenant.

6.5          Use of Common
Areas.  Use of all Common Areas by any Tenant Related
Parties shall at all times be subject to the Rules and Regulations and the exclusive control and management of
Landlord.

ARTICLE 7 

HAZARDOUS MATERIALS

7.1          Indemnity.
Tenant shall indemnify, defend and hold harmless all Landlord Related Parties
from and against all claims, suits,
demands, response costs, contribution costs, liabilities, losses, or damages
(including, without limitation, reasonable
attorneys’ fees), directly or indirectly arising out of the existence, use
generation, migration, storage, transportation,
release, threatened release, or disposal of Hazardous Materials in, on, or
under the Premises, the Building or the
Project or in the groundwater under the Project and the migration or
transportation of Hazardous Materials to or from the Premises, the
Building or the Project or the groundwater underlying the Project, to the
extent that any of the foregoing is caused by any Tenant Related Parties. This indemnity extends to the costs incurred by
any Landlord Related Party to repair, clean-up, dispose of, or remove such
Hazardous Materials in order to comply with the Environmental Laws; provided
that if

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Tenant is not otherwise in Default, Landlord shall
give Tenant not less than thirty (30) days’ advance notice of Landlord’s intention to incur such costs.

7.2          Restriction on
Hazardous Materials.  Tenant shall not permit any Tenant Related
Parties to use, generate, manufacture,
store, transport, release, threaten release, or dispose of Hazardous Materials
in, on, or about the Premises, the Building or the Project or transport
Hazardous Materials from the Premises, the Building or the Project unless
Tenant shall have received Landlord’s prior consent therefor, which Landlord
may revoke at any time, and shall not cause or permit the release or disposal of Hazardous Materials from the
Premises, the Building or the Project except in compliance with applicable Environmental Laws. Tenant shall
promptly deliver notice to Landlord if Tenant obtains knowledge sufficient to infer that Hazardous Materials are located on the
Premises, the Building or the Project that are not in compliance with
applicable Environmental Laws or if any third party, including without
limitation, any governmental agency, claims a significant disposal of Hazardous Materials occurred on the Premises,
the Building or the Project or is being or has been released from the Premises, the Building or the
Project.

7.3          Investigation
of Contamination.  Upon reasonable written request of Landlord,
Tenant, through its appropriately
qualified and licensed professional
engineers, and at Tenant’s cost, shall thoroughly investigate suspected
Hazardous Materials contamination of
the Premises, the Building or the Project that would arguably come within the
scope of Tenant’s indemnification and hold harmless obligations as set
forth above. Tenant, using duly licensed and insured contractors approved by Landlord, shall promptly commence and
diligently complete the removal, repair, clean-up, and detoxification of any
Hazardous Materials from the Premises, the Building and the Project as may be
required by applicable Environmental Laws
that comes within the scope of Tenant’s indemnification and hold harmless
obligations as set forth above.

7.4          Landlord
Consent.  If during the Term of this Lease, Tenant contemplates utilizing
Hazardous Materials (or subleasing or
assigning this Lease to a subtenant or assignee who utilizes Hazardous
Materials), Tenant shall obtain the prior written consent of Landlord.
As a condition of granting such consent, Landlord may require, among other
things, that (a) such substances be of the
type customarily used in offices and be used and maintained only in such
quantities as are reasonably
necessary for the Permitted Use and in strict accordance with applicable
Environmental Laws and manufacturer instructions
therefor; (b) such substances shall not be disposed of, released or discharged
on the Project and shall be transported
to and from the Premises in compliance with all applicable Environmental Laws
and as Landlord shall reasonably require;
(c) any remaining such substances shall be completely, properly and lawfully
removed from the Premises, the Building
and the Project upon expiration or earlier termination of this Lease; (d) such
use shall not constitute a nuisance, danger or health risk to or disrupt the
business of any other occupant of the Building or the Project; and (e) Tenant
carry environmental insurance
acceptable to Landlord, meeting the requirements of Sections 18.2 and 18.3, and
naming Landlord as an additional insured. If any applicable
Environmental Law or other ordinance or Landlord’s trash removal contractor requires that any such substances be disposed of
separately from ordinary trash, Tenant shall make arrangements, at Tenant’s expense, for such disposal directly with a
qualified and licensed disposal company at a lawful disposal site and shall
ensure that such disposal occurs frequently enough to prevent
unnecessary storage of such substances on the Premises. At such times as
Landlord may reasonably request, Tenant shall provide Landlord with a written
list identifying any Hazardous Materials
then used, stored or maintained upon the Premises, the use and approximate
quantity of each such material, a copy of
any Material Safety Data Sheet (“MSDS”) issued by the manufacturer thereof,
written information concerning the removal,
transportation, and disposal of the same, and such other information as
Landlord may reasonably require or as may be required by Environmental
Laws. Landlord, at its option, and at Tenant’s expense, may cause an engineer
selected by Landlord, to review (1) Tenant’s
operations including, without limitation, materials used, generated, stored,
disposed, and manufactured in Tenant’s
business; and (2) Tenant’s compliance with terms of this Section. Tenant shall
provide the engineer with such
information reasonably requested by the engineer to complete the review. The
first such review may occur prior to or shortly following the commencement of
the Term of this Lease. Thereafter, such review shall not occur more frequently than once each year unless cause
exists for some other review schedule.

ARTICLE
8 

SERVICES AND UTILITIES

8.1          Furnishing of
Building Services.  Provided that Tenant is not in Default, Landlord
agrees to furnish the Building Services
as set forth on Exhibit F. 

8.2          Interruption
in Services.  Unless caused by the gross negligence or willful
misconduct of Landlord, Landlord shall not
be in default hereunder nor be liable for any damages directly or indirectly
resulting from, nor shall the Rent be abated, for any interruption of or diminution in the quality or quantity of
Building Services, when the same is occasioned, in whole or in part, by
(a) repairs, replacements, or improvements; (b) by any strike, lockout or other
labor trouble; (c) by inability to secure or
limitation, curtailment, or rationing of, or restrictions on, use of
electricity, gas, water, or other form of energy

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serving the Premises, the
Building or the Project; (d) by any accident or casualty; (e) by act or Default
by Tenant or other parties; or (f) by
any other cause beyond Landlord’s reasonable control. Landlord shall not be
liable under any circumstances for a
loss of or injury to property or business, however occurring, through or in
connection with or incidental to failure to furnish any Building Services. No
failure, delay or diminution in Building Services shall ever be deemed to
constitute an eviction or disturbance
of Tenant’s use and possession of the Premises or relieve Tenant from paying
Rent or performing any of its obligations under this Lease. Furthermore,
Landlord shall not be liable under any circumstances for loss of, or injury to, property or for injury to, or interference
with, Tenant’s business, including, without limitation, loss of profits,
however occurring, through or in
connection with or incidental to a failure to furnish any of the Building
Services.

8.3          Extraordinary
Demand.  If Tenant uses heat generating machines or equipment in the
Premises that affect the temperature
otherwise maintained by the heating, ventilation and air-conditioning system,
Landlord reserves the right to install supplementary air-conditioning
units in the Premises; and the cost thereof, including, without limitation, the
cost of installation, operation, and
maintenance thereof, shall be paid by Tenant upon demand by Landlord.

8.4          Customary
Quantities. Tenant shall not consume
water or electric current in excess of that usually furnished or supplied for the use of the Premises as general
office space (as determined by Landlord) without first procuring the consent of
Landlord, and in the event of consent, Landlord may install a water meter or
electrical meter in the Premises to measure the amount of water or
electric current consumed. Tenant shall bear the cost of any such meter and of
its installation, maintenance, and repair,
and Tenant agrees to pay to Landlord promptly, upon demand, for all water and
electric current consumed as shown by
said meters at the rates charged for such services by the local public utility
plus any additional reasonable
expense incurred in keeping account of the water and electric current so
consumed. If a separate meter is not installed, the excess cost for
water and electric current shall be established by an estimate made by a
utility company or electrical engineer hired
by Landlord at Tenant’s expense. Tenant shall not, without the consent of
Landlord, use any apparatus or device
in the Premises that uses in excess of 120 volts. Tenant shall not connect any
apparatus with electric current
except through existing electrical outlets in the Premises. 

8.5          Separate
Metering. Nothing in this Article shall restrict
Landlord’s right to require at any time separate metering of utilities furnished to the Premises. In the event
utilities are separately metered, Tenant shall be responsible for the maintenance and repair of any such meters at its
sole cost.

8.6          Safety
and Security Devices, Services, and Programs.  The parties acknowledge that
safety and security devices, services, and programs provided by Landlord, if
any, while intended to deter crime and ensure safety, may not in given instances prevent theft or other criminal acts or
ensure safety of persons or property. The risk that any safety or security device,
service, or program may not be effective, or may malfunction, or be
circumvented by a criminal, is assumed by Tenant with respect to Tenant’s
property and interests; and Tenant shall obtain insurance coverage to the
extent Tenant desires protection against
such criminal acts and other losses. Tenant agrees to cooperate in any
reasonable safety or security program
developed by Landlord or required by Law.

8.7          Utility
Deregulation.  If permitted by applicable Law at any time in the future,
Landlord shall have the right at any time and from time to time during the Term
to either contract for electricity service from different companies providing electricity service (each such company shall
hereinafter be referred to as an “Alternate Service Provider”), and the costs, charges
or expenses reasonably incurred by Landlord to change such service shall be an
Operating Cost hereunder. Tenant agrees to cooperate with Landlord and any
Alternate Service Provider at all times and, as reasonably necessary, to provide
reasonable access to any electric facilities within the Premises. Tenant may
not elect to use any electricity service provider other than the one designated by Landlord for the Building without the
prior consent of Landlord.

8.8          Government
Energy or Utility Controls.  In the event of imposition of any government
controls, rules, regulations, or
restrictions on the use or consumption of energy or other utilities during the
Term, both Landlord and Tenant shall be bound thereby. In the event of a difference in interpretation by
Landlord and Tenant of any such controls, Landlord’s interpretation shall prevail, and Landlord shall
have the right to enforce compliance therewith, including, without limitation, the right of entry into the Premises to effect
compliance.

8.9          Telecommunications.  Tenant and Tenant’s
telecommunications companies,
including but not limited to local exchange
telecommunications companies and alternative access vendor services companies
(“Telecommunications Companies”), shall have no right of access to or within the Project for the installation and
operation of Tenant’s Telecommunications System without Landlord’s prior
consent. All work with respect to Tenant’s Telecommunications System shall be subject to the terms of this
Lease governing alterations and improvements by Tenant. Without in any way limiting
Landlord’s right to withhold its consent to a proposed request for access,
Landlord shall have the right to consider

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whether a Telecommunications
Company is willing to pay reasonable monetary compensation for the use and
occupation of the Building for the
Telecommunications System.

ARTICLE 9 

CONDITION OF THE PREMISES

Prior to the Possession Date,
Landlord shall perform the Landlord Work, if any, as described in Exhibit
E-l.  Except as expressly provided in Exhibit E-1, Tenant
acknowledges that Tenant is leasing the Premises on an “as is, where is” basis.
Tenant’s taking possession of the Premises
shall be deemed conclusive evidence that, as of the date of taking possession,
the Premises were in good order and
satisfactory condition, except for reasonable Punchlist Items delivered in
accordance with Exhibit E-l.  No promise of Landlord to alter,
remodel, repair, or improve the Premises, the Building or the Project, and no representation, express or implied, respecting
any matter or thing relating to the Premises, the Building, the Project or this
Lease (including, without limitation,
the condition thereof) have been made to Tenant by Landlord or its broker or
sales agent, other than as may be
expressly contained in this Lease. Promptly following the Possession Date,
Tenant shall perform Tenant’s Work to the Premises, if any, as described
in Exhibit E-1.

ARTICLE 10

REPAIRS AND MAINTENANCE. 

10.1          Landlord’s
Obligations.  Landlord shall maintain in good order, condition, and repair
the portions of the Building, the Project and the Premises that are not the
obligation of Tenant or any other tenant in the Building. Tenant shall give Landlord prompt notice of any damage to or
defective condition in any part or appurtenance of the Building Systems
serving, located in, or passing
through the Premises or any other damage that Landlord is obligated to repair.

10.2          Tenant’s
Obligations.  Tenant, at Tenant’s sole expense, shall
maintain, repair and replace the Premises as needed to keep all
interior, non-structural portions of the Premises in good order, condition, and
repair, including, without limitation, the following: (a) all plumbing and
sewage facilities, including but not limited to all plumbing fixtures, pipes,
fittings, or other parts of the plumbing
system that exclusively serve the Premises; (b) all fixtures, interior walls,
floors, carpets, draperies, window
coverings, and ceilings; (c) all interior windows, doors, entrances, and plate
glass; (d) all electrical wiring, facilities and equipment, including,
without limitation, any non-standard light fixtures, lamps, bulbs, tubes, fans,
vents, exhaust equipment, and systems; and
(e) any fire detection or extinguisher equipment that Landlord does not
maintain.

10.3          Damage by
Tenant.  Except for ordinary wear and tear, Tenant shall
promptly reimburse Landlord for any costs that Landlord may incur in making repairs and alterations in and to the
Premises, the Building, Building Systems, the Project or facilities, systems or equipment of the Project,
where the need for such repairs or alterations is caused by any of the following:
(a) Tenant’s use or occupancy of the Premises in a fashion that contravenes any
provision of this Lease; (b) the installation,
removal, use, or operation of Tenant’s Property; (c) the moving of Tenant’s
Property into or out of the Building; or (d) any tortious act, omission,
misuse, or negligence of any Tenant Related Parties.

10.4          Load
and Equipment Limits.  Tenant shall not without Landlord’s consent place a
load upon the Premises that exceeds the load
per square foot, that the structural portions of the Premises were designed to
carry, as determined by Landlord or
Landlord’s structural engineer. Upon demand Tenant shall pay the cost of any
such determination for items other
than the equipment, library, files, and furniture originally approved by
Landlord or by Landlord’s structural engineer.

ARTICLE 11

ALTERATIONS AND ADDITIONS

11.1          Tenant’s
Alterations.  Tenant shall not make any additions, alterations, or
improvements to the Premises without the prior consent of Landlord (which
consent shall not be unreasonably withheld or delayed), which consent shall be
requested by Tenant at least thirty (30) days prior to the commencement of any
work. Landlord’s consent may be conditioned, among other things, on Tenant’s removing any such
additions, alterations, or improvements at the Expiration Date and restoring
the Premises to the same condition as on the Possession Date. All additions,
alterations, and improvements shall be (a) made in a good and workmanlike manner using only good grades
of materials; (b) performed by properly qualified and licensed personnel
approved by Landlord; (c) performed so as not to cause or create any
jurisdictional or other labor disputes, including, without limitation, use of union labor if needed; (d)
performed in such manner as not to obstruct access to the Building or the
Common Areas, and as not to obstruct the business of Landlord or other tenants
in the Building; and (e) diligently prosecuted to completion. Notwithstanding
the foregoing, Tenant shall have the right during the Term to make additions,
alterations, or improvements as Tenant may reasonably deem desirable or
necessary, following ten (10) days’ notice
to Landlord, but without Landlord’s consent, provided that such work (i) is of
a non-structural nature; (ii) is not visible

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from outside of the Premises; (iii) does
not
affect any Building System; and (iv) does not, in the aggregate, exceed $5,000
for alterations other than floor and wall covering in any twelve (12) month
period.

11.2          Payment and
Indemnification.  Tenant shall pay the costs of any work done on the Premises
by or on behalf of Tenant and shall
keep the Premises, the Building, and the Project free and clear of liens of any
kind. Tenant shall indemnify, defend against, and keep Landlord free and
harmless from all claims, demands, liability, loss, damage, costs, reasonable attorneys’ fees, and any other expense incurred
on account of claims by any person performing work or furnishing materials or
supplies for Tenant or any person claiming under Tenant, including but not
limited to resolution of any jurisdictional or other labor disputes.

11.3          Notices
and Liens. Tenant agrees not to suffer or permit any lien of any mechanic
or materialman to be placed or filed against the Premises, the Building or the
Project. In case any such lien shall be filed, Tenant shall satisfy and release such lien of record within twenty (20) days (or
such shorter period as may be required by any Mortgagee) after the earlier to
occur of (a) receipt of notice thereof from Landlord; or (b) Tenant’s actual
knowledge or notice of such lien filing. If Tenant shall fail to have
such lien satisfied and released of record as provided herein, Landlord may, on
behalf of Tenant, without being responsible
for making any investigation as to the validity of such lien and without
limiting or affecting any other remedies
Landlord may have, pay the same and Tenant shall reimburse Landlord on demand
for such amount together with any other reasonable costs of Landlord,
including, without limitation, reasonable attorneys’ fees. Notwithstanding the foregoing, Tenant shall have the right to contest
any such lien claim diligently and in good faith, and during such contest shall not be obligated to pay such lien claim,
provided that Tenant is not in breach of any of its obligations under this
Lease and provided, Tenant, at its
sole cost and expense, transfers the lien from the Property to a bond, thereby
freeing the Property from any claim of lien. Notwithstanding any such
contest or title insurance, Tenant shall pay any such claim in full within five (5) days following the entry of an unstayed
judgment or order of sale. All materialmen, contractors, artisans, mechanics, laborers
and any other person now or thereafter furnishing any labor, services,
materials, supplies or equipment to Tenant with
respect to Premises or any portion thereof, are hereby charged with notice that
they must look exclusively to Tenant to obtain payment for the same. Notice is hereby given that Landlord shall
not be liable for any labor, services, materials, supplies, skill, machinery, fixtures or equipment
furnished to or to be furnished to Tenant upon credit and that no mechanic’s lien or any other lien for any such labor, services,
materials, supplies, machinery, fixtures or equipment shall attach to or effect the state or interest of Landlord in and to
the Premises or the Project, or any portion thereof. Before the actual
commencement of any work for which a claim or lien may be filed, Tenant shall
give Landlord notice of the intended commencement date a sufficient time
before that date to enable Landlord to post notices of nonresponsibility or any
other notices that Landlord deems necessary
for the protection of Landlord’s interest in the Premises, Building or the
Project, and Landlord shall have the right to enter the Premises and post such
notices at any reasonable time.

11.4          Construction Requirements.  Any work performed at the Building or on the
Premises by Tenant or Tenant’s contractor
in connection with improvements shall be subject to the General Conditions set
forth in Exhibit E. 

ARTICLE
12

CERTAIN RIGHTS RESERVED BY LANDLORD

Landlord reserves the following
rights, exercisable without liability to Tenant for (a) damage or injury to
property, person, or business; (b)
causing an actual or constructive eviction from the Premises; or (c) disturbing
Tenant’s use, possession, or beneficial and quiet enjoyment of the Premises:

12.1          Name.
To change the name or street address of the Building or the Project.

12.2          Signage.
To install and maintain signs on the exterior and interior of the
Building and the Project.

12.3          Keys.
To have passkeys to the Premises and all doors within the Premises, excluding
Tenant’s vaults and safes.

12.4          Inspection
and Entry.  Landlord may enter the Premises on reasonable prior
notice to Tenant (except in the event of an emergency, in which case no notice shall be required) (a) to inspect
the Premises; (b) to show the Premises to any prospective purchaser or
Mortgagee of the Project, or to others having an interest in the Project or
Landlord; (c) during the last six (6) months
of the Term, to show the Premises to prospective tenants; (d) to make
inspections, repairs, alterations, additions,
or improvements to the Premises or the Building (including, without limitation,
checking, calibrating, adjusting, or balancing controls and other parts of the
heating, ventilation and air-conditioning system); and (e) to take all steps as
may be necessary or desirable for
the safety, protection, maintenance, or preservation of the Premises or the
Building or Landlord’s interest therein, or as may be necessary or desirable
for the operation or improvement of the Building or in order to comply with Laws.

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12.5          Renovations.
Landlord may during the Term renovate, improve, alter, or modify (collectively,
the “Renovations”) the Building, the
Premises, or the Project, including without limitation, Common Areas, Building
Systems, roof, and structural
portions of the Building. Renovations may include, without limitation, (a)
modifying the Common Areas and tenant
spaces to comply with applicable Laws, including, without limitation,
regulations relating to the physically disabled, seismic conditions, and building safety and security; and (b) installing
new carpeting, lighting, and wall coverings in the Common Areas. In connection with such Renovations,
Landlord may, among other things, erect scaffolding or other necessary
structures in the Building, limit or eliminate access to portions of the
Building or Project, including, without limitation, portions of the Common
Areas, or perform work in the Building that may create noise, dust or leave
debris. Tenant hereby agrees that such
Renovations and Landlord’s actions in connection with such Renovations shall in
no way constitute a constructive eviction
of Tenant nor entitle Tenant to any abatement of Rent. Landlord shall have no responsibility or for any reason be liable to
Tenant for any direct or indirect injury to or interference with Tenant’s
business arising from the
Renovations, nor shall Tenant be entitled to any compensation or damages from
Landlord for inconvenience, annoyance
or loss of the use of any part of the Premises or of Tenant’s Property
resulting from the Renovations.

12.6          Common
Areas.  Landlord shall have the right to eliminate or change the size,
location and arrangement of the Common
Areas; to enter into, modify and terminate easements and other agreements
pertaining to the use and maintenance of the Common Areas; to close all or any
portion of the Common Areas as may be necessary to prevent a dedication thereof
or the accrual of any rights to any
person or to the public therein; to close temporarily any or all portions of
the Common Areas; and to do and
perform such other acts in and to the Common Areas as Landlord shall determine
to be advisable for the convenience and use thereof by owners, occupants,
tenants and invitees of the Building.

In the exercise of the foregoing rights, Landlord
shall (except in an emergency) take reasonable steps to minimize any
interference with Tenant’s business.

ARTICLE 13 

RULES AND REGULATIONS

Tenant shall comply with (and cause all Tenant Related
Parties to comply with) the Rules and Regulations. Landlord shall not be
responsible for any violation of the Rules and Regulations by other tenants or
occupants of the Building or Project. All
Rules and Regulations, whether now existing or hereafter adopted by Landlord,
shall be non-discriminatory in nature.

ARTICLE 14

TRANSFERS 

Except as provided in this
Article, Tenant shall not, without the prior consent of Landlord, make any
Transfer.

14.1          Notice.
Tenant shall notify Landlord of any proposed Transfer (a “Transfer Notice”).
The date of the proposed Transfer must be
not less than forty-five (45) days or more than one hundred eighty (180) days
after the date of the Transfer Notice. The Transfer Notice shall include
(a) the proposed effective date of the Transfer; (b) a description of the
portion of the Premises to be transferred (the “Subject Space”); (c) all of the
terms of the proposed Transfer and the consideration therefor, including a calculation of the Transfer Premium (as defined
below); (d) the name and address of the Transferee; (e) current financial statements of the Transferee
certified by an officer, partner or owner thereof; (f) any other information
that will enable Landlord to determine the financial responsibility,
character, and reputation of the Transferee and the nature of such Transferee’s business; and (g) the proposed
use of the Subject Space. Landlord shall respond to any properly delivered
Transfer Notice within thirty (30) days.

14.2          Fees.
Whether or not Landlord shall grant
consent, Tenant shall pay Landlord’s reasonable review and processing fees, as well as any reasonable legal fees
incurred by Landlord, within thirty (30) days after written request by
Landlord. 

14.3          Consent.
Landlord shall not unreasonably withhold or delay its consent to any proposed
Transfer. It shall be reasonable under this
Lease and under any applicable Law for Landlord to withhold consent to any
proposed Transfer where one or more
of the following apply, without limitation as to other reasonable grounds for
withholding consent:

          14.3.1          The
Transferee is of a character or reputation or
engaged in a business that is not consistent with the quality of the Building.

          14.3.2          The
Transferee intends to use the Subject Space
for purposes that are not permitted under this Lease.

          14.3.3          The
Transferee is either a governmental agency or
instrumentality thereof.

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          14.3.4          The
Transfer will result in more than a reasonable and safe number of occupants per
floor within the Subject Space.

          14.3.5          The
Transferee is not a party of reasonable financial worth or financial stability
in light of the responsibilities
involved under the Lease on the date consent is requested, as determined by
Landlord.

          14.3.6          The
Transfer would cause a violation of another lease or any agreement to which
Landlord is a party, or would give an
occupant of the Building a right to cancel its lease.

          14.3.7          Either
the Transferee or an Affiliate of the
Transferee (a) occupies space in the Building at the time of the request
for consent; (b) is negotiating with Landlord to lease space in the Building at
such time; or (c) has negotiated with Landlord
during the six (6)-month period immediately preceding the Transfer Notice.
Notwithstanding the foregoing, Landlord shall have no right to refuse
consent to a proposed Transfer under this Section 14.3.7 if, in the Landlord’s
sole determination, Landlord does not have
the available space to lease to the proposed Transferee.

14.4          Completion of
Transfer.  If Landlord consents to any Transfer (and does
not exercise any recapture rights Landlord may have under this Lease),
Tenant may within six (6) months after Landlord’s consent, enter into the
approved Transfer, upon substantially the
same terms and conditions as are set forth in the Transfer Notice. If there are
any material changes in the terms and
conditions from those specified in the Transfer Notice (a) such that Landlord
would initially have been entitled to refuse its consent to such
Transfer; or (b) that would cause the proposed Transfer to be more favorable to
the Transferee than the terms set forth in
the Transfer Notice, Tenant shall again submit the Transfer to Landlord for its
approval and other action under this
Article (including, without limitation, exercise any of recapture rights
Landlord may have under this Lease).

14.5          Transfer
Premium.  If Landlord consents to a Transfer, Tenant shall
pay to Landlord fifty percent (50%) of any Transfer Premium received by Tenant.
“Transfer Premium” shall mean (a) all rent, additional rent or other
consideration payable by such
Transferee in excess of the Rent payable by Tenant under this Lease on a per
rentable square foot basis; (b) all
key money and bonus money paid by Transferee; and (c) any payment in excess of
fair market value for services rendered by Tenant to Transferee. The “Transfer Premium” shall (i) be reduced by
all out-of-pocket expenses incurred by Tenant in connection with the
Transfer, such as brokerage commissions and reasonable attorneys’ fees; and
(ii) shall not include any compensation for the fair market value of Tenant’s
Property nor reasonable compensation for the sale of Tenant’s business that is
not attributable to the value of Tenant’s leasehold interest hereunder. Tenant
shall pay the Transfer Premium to Landlord
within five (5) days following receipt by Tenant. Tenant shall furnish upon
Landlord’s request a complete statement,
certified by an independent certified public accountant, or Tenant’s chief
financial officer, setting forth in detail the computation of any Transfer Premium. Within one (1) year following the
date of the Transfer, Landlord shall have the right at all reasonable times to
audit the books, records and papers of Tenant relating to any Transfer as
necessary to confirm the calculation of the Transfer Premium. If the
Transfer Premium shall be found understated, Tenant shall, within thirty (30) days after demand, pay the deficiency, together
with interest thereon at the Interest Rate and Landlord’s costs of such audit. If
the Transfer Premium has been understated by more than ten percent (10%),
Landlord shall have the right to cancel this Lease
upon thirty (30) days’ notice to Tenant and Tenant shall indemnify Landlord
from and against any and all liability associated
with such termination, including but not limited to any claims by the
Transferee.

14.6          Recapture.
Notwithstanding anything to the contrary contained in this Article, Landlord
shall have the option, by giving notice to Tenant within twenty (20) days after
receipt of any Transfer Notice, to recapture the Subject Space. Such recapture notice shall cancel and terminate this
Lease with respect to the Subject Space as of the effective date of the proposed Transfer. In the event of a recapture by
Landlord, if this Lease shall be canceled with respect to less than the entire
Premises, the Rent reserved herein shall be prorated on the basis of the
Rentable Area retained by Tenant in proportion to the Rentable Area of the Premises, and this Lease as
so amended shall continue thereafter in full force and effect. Upon request of either party, the parties shall execute written
confirmation of the foregoing.

14.7          Effect
of Transfer. If Landlord consents to a Transfer, (a) no terms or conditions
of this Lease shall be deemed to have been
waived or modified; (b) such consent shall not be deemed consent to any further
Transfer; (c) no Transfer shall be valid,
and no Transferee shall take possession of the Premises, until an executed
counterpart of all documentation pertaining to the Transfer has been
delivered to Landlord; and (d) no Transfer shall relieve Tenant or any
Guarantor from primary liability under this
Lease. The acceptance of Rent by Landlord from any party shall not be deemed to
be a waiver of Landlord of any
provision hereof. In the event of Default by a Transferee in the performance of
any of the terms hereof, Landlord may
proceed directly against Tenant without the necessity of exhausting remedies
against such Transferee. Landlord
may consent to subsequent assignments of the Lease or sublettings or amendments
or modifications to the Lease by Transferees
without notifying Tenant, and without obtaining its consent thereto, and any
such actions shall not relieve Tenant of liability under this Lease.

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14.8          Tenant Remedy
for Landlord Refusal to Consent.  Notwithstanding any provision of this
Lease or any applicable Laws to the
contrary, Landlord and Tenant hereby expressly agree that if a court of
competent jurisdiction determines that Landlord
unreasonably withheld consent to a proposed Transfer, then Tenant’s sole and
exclusive remedy for such breach by Landlord
shall be limited to termination of this Lease as of the date of such court
determination. Tenant hereby expressly waives the right to recover monetary
damages of any kind whatsoever and attorney’s fees incurred on account of any
such breach.

ARTICLE I5 

DESTRUCTION OR DAMAGE

15.1          Landlord
Termination Rights.  If the Premises or the portion of the Building or the
Project necessary for Tenant’s occupancy is damaged by fire, earthquake,
terrorism, act of war, act of God, the elements or other casualty, then
Landlord may terminate this Lease upon
notice given to Tenant within sixty (60) days after the date of such casualty,
effective as of the date of the casualty
if (a) in Landlord’s opinion, repairs necessary for Tenant’s occupancy cannot
be completed within ninety (90) days;
(b) any other portion of the Building or the Project is damaged to the extent
that, in Landlord’s opinion, repair thereof
cannot be completed within ninety (90) days; (c) the Premises or the portion of
the Building or the Project necessary for
Tenant’s occupancy is damaged during the final twelve (12) months of the Term,
unless Tenant shall exercise its next available renewal option (if any)
within ten (10) days following receipt of Landlord’s termination notice, or
unless both parties agree on an extension
of this Lease within such ten (10) day period; (d) the insurance proceeds
available to Landlord are not sufficient to complete repair or restoration; (e)
Landlord’s lender does not elect to make insurance proceeds available to Landlord for repair and restoration; or (f)
Tenant has vacated the Premises or is in Default under this Lease.

15.2          Repairs.
If this Lease is not terminated
as provided above, it shall continue in full force and effect, and Landlord
shall promptly and diligently, subject to reasonable delays for insurance
adjustment, and subject to all other terms of this Article, restore the
base, shell, and core of the Premises, the Common Areas and the portions of the
Project serving the Premises. Such
restoration shall be to substantially the same condition of such items as prior
to the casualty, except for modifications (a) required by Law; (b)
required by the holder of a mortgage on the Building, or the lessor of a ground
or underlying lease with respect to the Property; or (c) to the Common Areas
reasonably deemed desirable by Landlord, and which
are consistent with the character of the Project. No such modifications shall
materially impair access to the Premises and any Common Areas serving
the Premises. Tenant shall be responsible, at its sole cost and expense, for
the repair, restoration, and replacement of any leasehold improvements
installed by Tenant (unless Landlord has elected to insure the same, in which
case such repair shall be Landlord’s responsibility) and Tenant’s Property.
Landlord shall not be liable for any loss
of business, inconvenience, or annoyance arising from any repair or restoration
of any portion of the Premises, the Building, or the Project as a result
of any damage from any casualty. Following Landlord’s repair of the Premises,
Tenant shall repair and restore any
improvements installed by Tenant to substantially the same condition as prior to
the casualty, except for modifications required by Law. All work by
Tenant shall be subject to the conditions set forth in this Lease governing alterations and additions.

15.3          Tenant’s
Termination Rights.  If Landlord does not elect to terminate this
Lease pursuant to Landlord’s termination right as provided above, and the
repairs cannot be completed within one hundred eighty (180) days after being
commenced (the “Repair Period”),
Tenant may elect, no earlier than sixty (60) days after the date of the
casualty and not later than ninety (90) days after the date of such casualty,
to terminate this Lease by notice to Landlord, effective as of the date
specified in the notice, which date shall not be less than thirty (30)
days nor more than sixty(60) days after such notice. In addition, in the event that the Premises or the Building is
destroyed or damaged to any substantial extent during the last twelve (12)
months of the Term, then Tenant shall have the option to terminate this
Lease by giving notice to Landlord within thirty (30) days after such casualty, in which event this Lease
shall cease and terminate as of the date of such notice. Tenant shall also have
the right to terminate this Lease if Landlord does not complete repairs within
the Repair Period by thirty (30) days’ notice to Landlord after the
expiration of the Repair Period; provided however, if Landlord completes repair
within such thirty (30) day period, such
termination shall be nullified and this Lease shall continue in full force and
effect.

15.4          Apportionment
of Rent. Upon any termination of this Lease pursuant to this Article,
Tenant shall pay the Rent, properly apportioned up to such date of termination,
and both parties hereto shall thereafter be freed and discharged of all further obligations hereunder, except as provided
for in provisions of this Lease that by their terms survive the expiration or earlier termination of this Lease.

15.5          Abatement.
The Rent shall abate on an equitable basis to the extent Tenant’s use of the
Premises is impaired, commencing with the
date of the casualty and continuing until completion of the repairs required of
Landlord; provided that if the damage is due to the negligence or willful
misconduct of any Tenant Related Party, Rent shall only abate to the extent the same is covered by rent loss insurance, if
any, carried by Landlord.

- 16 -

15.6          Express
Agreement. This Lease shall be considered an express agreement governing any
case of damage to or destruction of the Premises, the Building, or the Project
by fire or other casualty; and any present or future law that purports to govern the rights of
Landlord and Tenant in such circumstances in the absence of express agreement
shall have no application.
As a material inducement to Landlord’s entering into this Lease, Tenant
irrevocably waives and releases the provisions of California Civil Code Section 1932 or 1933 and any other
Law that would permit termination or automatically terminate this Lease or
otherwise be contrary to the provisions of this Article in the event of any
damage or destruction.

ARTICLE 16

EMINENT DOMAIN

16.1          Entire
Premises.  If the whole of the
Building or the Premises is lawfully taken by condemnation or in any other manner for any public or quasi-public purpose,
this Lease shall terminate as of the earlier of the date of the date title
vests or the date possession is given, and Rent shall be prorated to such date.

16.2          Partial
Condemnation. If less than the whole
of the Building or the Premises is so taken, this Lease shall be unaffected by such
taking, except that (a) Tenant shall have the right to terminate this Lease by
notice to Landlord given within ninety (90) days after the date of such taking if
twenty-five percent (25%) or more of the Premises is taken and the remaining area of the Premises is not
reasonably sufficient for Tenant to continue operation of its business; and (b)
Landlord shall have the right to terminate
this Lease by notice to Tenant given within ninety (90) days after the date of
such taking. If either Landlord or Tenant so elects to terminate this Lease,
this Lease shall terminate on the thirtieth (30th) day after either such
notice. Rent shall be prorated to the date of such termination. If this Lease
continues in force upon such partial taking, the Base Rent and Tenant’s
Proportionate Share shall be equitably adjusted according to the remaining
Rentable Area of the Premises and the Project.

16.3          Proceeds of
Award. In the
event of any taking, partial or whole, all of the proceeds of any award,
judgment, or settlement
payable by the condemning authority shall be the exclusive property of
Landlord, whether awarded as compensation for the damages to Landlord’s or
Tenant’s interest in the Premises and whether or not awarded as compensation for diminution in value of the
leasehold or to the fee of the Premises, and Tenant hereby assigns to Landlord
all of its right, title, and interest in any
award, judgment, or settlement from the condemning authority. Tenant, however,
shall have the right, to the extent that Landlord’s award is not reduced
or prejudiced, to claim from the condemning authority (but not from Landlord)
such compensation as may be recoverable by Tenant in its own right for
relocation expenses and damage to Tenant’s
Property.

16.4          Repairs.
In the event of a partial taking of the Premises that does not result
in a termination of this Lease, Landlord shall restore the remaining portion of the Premises as nearly as
practicable to its condition prior to the condemnation or taking. Tenant shall
be responsible at its sole cost and expense for the repair, restoration, and
replacement of Tenant’s Property.

ARTICLE 17

INDEMNIFICATION, WAIVER, RELEASE AND LIMITATION OF
LIABILITY

17.1          Tenant’s
Indemnity.  Except for any injury or
damage to persons or property on the Premises that is proximately caused by or results
proximately from the gross negligence or willful misconduct of Landlord, no
Landlord Related Parties shall be liable for, and Tenant will and does hereby
indemnify, defend and hold harmless the Landlord Related Parties against and from all liabilities,
obligations, suits, damages, penalties, claims, costs, charges and expenses,
including, without limitation,
reasonable attorneys’ fees and other professional fees (if and to the extent
permitted by law), that may be imposed upon,
incurred by, or asserted against Landlord or any of the Landlord Related
Parties and arising, directly or indirectly, out of or in connection with Tenant’s use, occupancy or maintenance of the
Premises, the Building or the Project, including, without limitation, any of the following: (a) any
work or thing done in, on or about the Premises, the Building or the Project or
any part thereof by any Tenant Related Party; (b) any injury or damage to any
person or property; (c) any failure on the part of Tenant to perform or comply
with any of the covenants, agreements, terms or conditions contained in this
Lease; and (d) any negligent or otherwise
tortious act or omission of any Tenant Related Party. At Landlord’s request,
Tenant shall, at Tenant’s expense and by counsel selected by Landlord, defend
Landlord in any action or proceeding arising from any such claim or liability and shall indemnify Landlord
against all costs, reasonable attorneys’ fees, expert witness fees, and any
other expenses incurred in such action or proceeding.

17.2          Assumption
of Risk.  Tenant hereby assumes all risk of damage or
injury to any person or property in, on, or about the Premises from any cause other than the gross
negligence or willful misconduct of Landlord. Tenant, to the fullest extent permitted
by law and as a material part of the consideration to Landlord for this Lease,
hereby waives and releases all claims

- 17 -

against
any Landlord Related Parties with respect to all matters for which Landlord has
disclaimed liability pursuant to the provisions of this Lease. Tenant agrees
that, unless expressly provided herein, no Landlord Related Parties will be
liable for any loss, injury, death, or damage to persons, property, or Tenant’s
business resulting from any of the following, regardless of whether the same is due to the active or
passive negligence of any Landlord Related Party: (a) theft; (b) act of God,
public enemy, injunction, riot, strike, insurrection, war, terrorism, court
order, requisition, order of governmental body or authority, fire, explosion or falling objects; (c) any
accident or occurrence in the Premises or any other portion of the Building or
the Project caused by the Premises or
any other portion of the Building or the Project becoming out of repair or by
the obstruction, breakage or defect
in or failure of equipment, pipes, sprinklers, wiring, plumbing, heating,
ventilation and air-conditioning or lighting fixtures of the Building or the
Project or by broken glass or by the backing up of drains, or by gas, water,
steam, electricity or oil leaking, escaping or flowing into or out of the
Premises; (d) construction, repair or alteration of any other premises in the Building or the Premises, unless due to solely
to the gross negligence or willful misconduct of Landlord; (e) business interruption or loss of use of the Premises; (f)
any diminution or shutting off of light, air or view by any structure
erected on the Land or any land adjacent to the Project, even if Landlord is
the adjacent land owner; (g) mold or indoor
air quality; (h) any acts or omissions of any other tenant, occupant or visitor
of the Building or the Project; or (i) any cause beyond Landlord’s control. In
no event shall Landlord be liable for indirect, consequential, or punitive
damages or for damages based on lost
profits. None of the foregoing shall be considered a constructive eviction of
Tenant, nor shall the same entitle
Tenant to an abatement of Rent. Tenant acknowledges that it is familiar with
and understands California Civil Code Section 1542,
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 ACKNOWLEDGES AND AGREES THAT IT HAS
BEEN REPRESENTED BY LEGAL COUNSEL OF ITS CHOICE IN CONNECTION WITH THIS LEASE, AND THAT
SUCH COUNSEL HAS EXPLAINED TO TENANT THE PROVISIONS OF THIS SECTION. BY INITIALING
BELOW, TENANT CONFIRMS IT HAS AGREED TO THE PROVISIONS OF THIS SECTION.

Tenant’s initials:
___________

Tenant
hereby waives and relinquishes every right or benefit which it has or may have
under California Civil Code Section 1542 to the full extent that it may
lawfully waive such right or benefit. In connection with such waiver and
relinquishment, Tenant
acknowledges that it may discover facts in addition to or different from those
that it knows or believes to be true with respect
to the subject matter of this Lease and/or the waiver(s) set forth herein, but
that it is Tenant’s intention hereby to fully, finally and forever waive and release all claims, demands, losses,
liabilities, costs, expenses and damages, known or unknown, suspected or unsuspected, that may exist
or heretofore have existed or that may come into existence hereinafter with respect to the claims, as well as any and all
other claims and/or matters covered herein or contemplated hereby. The releases given in this Section, as well as well
elsewhere in this Lease, shall be and remain in effect as full and complete releases notwithstanding the discovery or
existence of any such additional or different facts.

17.3          Waiver of
Subrogation.  Anything in this Lease to
the contrary notwithstanding, Landlord and Tenant each hereby waives any and all rights of recovery, claim,
action or cause of action against the other for any loss or damage to any
property of Landlord or Tenant, arising from
any cause that (a) would be insured against under the terms of any property
insurance required to be carried
hereunder; or (b) is insured against under the terms of any property insurance
actually carried, regardless of
whether the same is required hereunder. The foregoing waiver shall apply
regardless of the cause or origin of such
claim, including but not limited to the negligence of a party, or such party’s
agents, officers, employees or contractors. The foregoing waiver shall not apply if it would have the effect, but
only to the extent of such effect, of invalidating any insurance coverage of
Landlord or Tenant. The foregoing waiver shall also apply to any deductible, as
if the same were a part of the
insurance recovery.

17.4          Limitation of
Landlord Liability.  Neither Landlord nor any Landlord Related
Party shall have any personal liability with
respect to any of the provisions of the Lease, or the Premises. If Landlord is
in breach or default with respect to Landlord’s
obligations under the Lease, Tenant shall look solely to the equity interest of
Landlord in the Building for the satisfaction
of Tenant’s remedies or judgments. No other real, personal, or mixed property
of any Landlord Related Parties, wherever situated, shall be subject to
levy to satisfy such judgment. Upon any Transfer of Landlord’s interest in this
Lease or in the Project, the transferring
Landlord shall have no liability or obligation for matters arising under this
Lease from and after the date of such Transfer.

- 18 -

ARTICLE
18

TENANT’S INSURANCE

18.1          Required Coverage.
Tenant shall maintain the following coverages in the following amounts.

          18.1.1          Commercial
General Liability Insurance (or its equivalent) covering the insured against
claims of bodily injury, personal injury and property damage arising out of
Tenant’s operations, assumed liabilities or use of the Premises, for limits of
liability not less than Two Million and No/100 Dollars ($2,000,000.00) combined
single limit per occurrence and Five Million and No/100 Dollars ($5,000,000.00)
combined single limit annual aggregate.

          18.1.2          Property
Insurance covering (a) Tenant’s Property, (b) any improvements and alterations
other than the Landlord Work, made by Tenant or at Tenant’s request. Such
insurance shall be written on a “Causes of Loss – Special Form” basis (or its
equivalent), for the full replacement cost without deduction for depreciation,
and shall include coverage for vandalism, malicious mischief and sprinkler
leakage. The proceeds of such insurance shall be used for the repair or
replacement of the property so insured. Upon termination of this Lease
following a casualty as set forth herein the proceeds under (a) shall be paid
to Tenant and the proceeds under (b) in excess of Tenant’s unamortized cost
associated therewith shall be paid to Landlord. Notwithstanding the foregoing,
Landlord shall have the option at any time, upon three (3) months’ notice to
Tenant, to procure property insurance covering leasehold improvements on all
the premises throughout the Building, and Tenant shall thereafter pay Tenant’s
Proportionate Share of the premium of such policy as an element of Project
Operating Costs.

          18.1.3          INTENTIONALLY
OMITTED

          18.1.4          Statutory
worker’s compensation, together with employers liability coverage at limits of:

	
 

	
 

	
 

	
$500,000 Each Accident

	
 

	
$500,000 Each Employee by Disease

	
 

	
$500,000 Policy Limit by Disease

18.2          Form of Policies.
The minimum limits of policies of insurance required of Tenant under this Lease
shall in no event limit the liability of Tenant under this Lease. All liability
insurance shall (a) name Landlord, Landlord’s asset manager, Landlord’s
property management agent, and at Landlord’s request, any Mortgagee, each as an
additional insured, as their respective interests may appear; (b) specifically
cover the liability assumed by Tenant under this Lease, including, but not
limited to, Tenant’s indemnity obligations under this Lease; (c) be issued by
an insurance company having a rating of not less than A- IX in Best’s Insurance
Guide or that is otherwise acceptable to Landlord and licensed to do business
in the State; (d) be primary insurance as to all claims thereunder and provide
that any insurance carried by Landlord shall be excess and non-contributing
with any insurance requirement of Tenant; (e) provide that said insurance shall
not be canceled, expire or coverage reduced unless thirty (30) days’ prior
notice shall have been given to Landlord; and (f) if Tenant has a net worth of
less than Ten Million and No/100 Dollars ($10,000,000.00), have a deductible
not greater than Five Thousand and No/100 Dollars ($5,000.00).

18.3          Evidence of
Insurance. Tenant shall deliver a copy of each paid-up policy
(authenticated by the insurer) or other evidence of insurance reasonably
satisfactory to Landlord, evidencing the existence and amount of each insurance
policy required hereunder on or before the Possession Date and at least thirty
(30) days before the expiration dates of the applicable policies. Landlord may,
at any time and from time to time, inspect or copy any insurance policies that
this Lease requires Tenant to maintain. Tenant shall furnish Landlord with
renewals or “binders” of each policy at least ten (10) days prior to the
expiration thereof. Tenant agrees that, if Tenant does not obtain and maintain
such insurance, Landlord may (but shall not be required to) after five (5)
days’ notice to Tenant during which time Tenant does not supply Landlord
evidence of the required insurance, procure said insurance on Tenant’s behalf
and charge Tenant the premiums therefor, payable upon demand. Tenant shall have
the right to provide the insurance required hereunder pursuant to blanket
policies obtained by Tenant, provided such blanket policies afford coverage as
required by this Lease.

18.4          Additional
Insurance Obligations. Landlord may require (a) that Tenant obtain
additional types of insurance, including but not limited to earthquake,
sprinkler leakage by earthquake, environmental insurance and terrorism; the
extent such coverages are either (i) standard for similar properties in the
same geographic area as the Property and are available at commercially
reasonable rates, or (ii) are otherwise reasonably required by Landlord; and
(b) from time to time, but not more frequently than every three (3) years
during the Term, increases in the policy limits for all insurance to be carried
by Tenant as set forth herein, in order to reflect standard limits for similar
properties.

- 19 -

18.5          Independent
Obligations. Tenant acknowledges and agrees that Tenant’s insurance
obligations under this Lease are independent of Tenant’s indemnity obligations,
liabilities and duties under this Lease.

ARTICLE 19

DEFAULT

19.1          Tenant’s
Default. A “Default” shall mean the occurrence of any one or more of the
following events:

          19.1.1          Tenant’s
failure to pay any Rent when due, where such failure shall continue for a
period of three (3) days after notice thereof from Landlord to Tenant. In the
event that Landlord serves Tenant with a Notice to Pay Rent or Quit pursuant to
applicable Unlawful Detainer statutes, such Notice to Pay Rent or Quit shall
also constitute the notice required by this subsection.

          19.1.2          If
any representation or warranty made by Tenant or any Guarantor to Landlord is
false in any material respect when made.

          19.1.3          Tenant
fails to deliver any estoppel certificates or subordination agreements within
the periods set forth in this Lease.

          19.1.4          The
levy of a writ of attachment or execution on this Lease or on any of Tenant’s
property or that of any Guarantor.

          19.1.5          Tenant’s
or any Guarantor’s general assignment for the benefit of creditors or arrangement,
composition, extension, or adjustment with its creditors.

          19.1.6          Tenant
or any Guarantor becomes insolvent or bankrupt or admits in writing its
inability to pay its debts as they mature.

          19.1.7          Proceedings
for the appointment of a trustee, custodian or receiver of Tenant or any
Guarantor or for all or a part of Tenant’s or such Guarantor’s property are
filed by or against Tenant or any Guarantor, and, if filed against Tenant or
such Guarantor involuntarily, are not dismissed within sixty (60) days of
filing.

          19.1.8          Proceedings
in bankruptcy, or other proceedings for relief under any law for the relief of
debtors, are instituted by or against Tenant or any Guarantor, and, if
instituted, against Tenant or such Guarantor involuntarily, are not dismissed
within sixty (60) days of filing.

          19.1.9          If
the Premises is located on the first floor of the Building, failure to open and
operate Tenant’s business in the Premises in the ordinary course of business.

          19.1.10          Tenant
makes an anticipatory breach of this Lease. “Anticipatory breach” shall mean
either (a) Tenant’s repudiation of this Lease in writing; or (b) the
combination of (i) Tenant’s desertion or vacation of the Premises or removal of
all or a substantial amount of Tenant’s equipment, furniture and fixtures from
the Premises; and (ii) Tenant’s failure to pay any Rent under this Lease when
due.

          19.1.11          Tenant
fails to perform any other covenant, condition or agreement contained in this
Lease not covered by the preceding subsections, where such failure continues
for thirty (30) days after notice thereof from Landlord to Tenant, or such
additional period as is reasonably necessary to effect cure, provided Tenant commences
cure within such thirty (30) day period and diligently pursues the same to
completion within ninety (90) days following Landlord’s notice.

          19.1.12          Tenant
shall repeatedly fail to pay Rent when due or any other charges required to be
paid, or shall repeatedly default in keeping, observing or performing any other
covenant, agreement, condition or provision of this Lease, whether or not
Tenant shall timely cure any such payment or other default. For the purposes of
this subsection, the occurrence of similar defaults two (2) times during any
twelve (12) month period shall constitute a repeated default.

Any notice periods provided
for under this Section shall run concurrently with any statutory notice periods
and any notice given hereunder may be given simultaneously with or
incorporated into any such statutory notice.

19.2          Landlord’s
Default. Tenant shall promptly notify Landlord of the need for any repairs
or action with respect to other matters that are Landlord’s obligation under this
Lease. If Landlord fails to perform any covenant, condition, or agreement
contained in this Lease within thirty (30) days after receipt of notice from
Tenant, or if such default cannot reasonably be

- 20 -

cured within thirty (30) days, and if Landlord fails
to commence to cure within such thirty (30) day period or to diligently
prosecute the same to completion, then subject to the other provisions of this
Lease, then, subject to the other limitations set forth elsewhere in this
Lease, Landlord shall be liable to Tenant for any damages sustained by Tenant
as a result of Landlord’s breach; provided that in no event shall (a) Landlord
be liable for indirect, consequential or punitive damages; or (b) Tenant have
the right to terminate this Lease on account of a Landlord default. Tenant
shall not have the right to withhold, reduce or offset any amount against any
payments of Rent or any other charges due and payable under this Lease unless
Tenant has obtained a final, non-appealable judgment against Landlord for the
amount due.

ARTICLE
20

LANDLORD REMEDIES AND DAMAGES

20.1          Remedies. In
the event of a Default, then in addition to any other rights or remedies
Landlord may have at law or in equity, Landlord shall have the right, at
Landlord’s option, without further notice or demand of any kind, to do any or
all of the following without prejudice to any other remedy that Landlord may
have:

          20.1.1          Terminate
this Lease and Tenant’s right to possession of the Premises by giving notice to
Tenant. Tenant shall immediately surrender the Premises to Landlord, and if
Tenant fails to do so, Landlord may re-enter the Premises and take possession
thereof, whereupon Tenant shall have no further claim to the Premises or under
this Lease.

          20.1.2          Continue
this Lease in full force and effect, whether or not Tenant has vacated or
abandoned the Premises, and collect any unpaid Rent or other charges, that have
or thereafter become due and payable.

          20.1.3          Continue
this Lease in effect, but terminate Tenant’s right to possession of the
Premises and re-enter the Premises and take possession thereof, whereupon
Tenant shall have no further claim to the Premises without the same
constituting an acceptance of surrender.

          20.1.4          In
the event of any re-entry or retaking of possession by Landlord, Landlord shall
have the right, but not the obligation, (a) to expel or remove Tenant and any
other party who may be occupying the Premises, or any part thereof; and (b) to
remove all or any part of Tenant’s or any other occupant’s property on the
Premises and to place such property in storage at a public warehouse at the
expense and risk of Tenant.

          20.1.5          Landlord
shall have 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, 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.

          20.1.6          Without
any further notice or demand, Landlord may enter upon the Premises, if
necessary, without being liable for prosecution or claim for damages therefor,
and do whatever Tenant is obligated to do under the terms of the Lease Tenant
agrees to reimburse Landlord on demand for any reasonable expenses which
Landlord may incur in effecting compliance with Tenant’s obligations under the
Lease. Tenant further agrees that Landlord shall not be liable for any damages
resulting to Tenant from such action, unless caused by the gross negligence or
willful misconduct of Landlord (but subject to the other limitations on
Landlord’s liability set forth in this Lease). Notwithstanding anything herein
to the contrary, Landlord will have no obligation to cure any Default of Tenant.

          20.1.7          Landlord
shall at all times have the right, without prior demand or notice except as
required by Law, to seek any declaratory, injunctive or other equitable relief,
and specifically enforce this Lease, or restrain or enjoin a violation or
breach of any provision hereof, without the necessity of proving the inadequacy
of any legal remedy or irreparable harm.

          20.1.8          To
the extent permitted by applicable Law, Landlord shall have the right, without
notice to Tenant, to change or re-key all locks to entrances to the Premises,
and Landlord shall have no obligation to give Tenant notice thereof or to
provide Tenant with a key to the Premises.

          20.1.9          The
rights given to Landlord in this Article are cumulative and shall be in
addition and supplemental to all other rights or remedies that Landlord may
have under this Lease and under applicable Laws or in equity.

20.2          Damages. Should
Landlord elect to terminate this Lease or Tenant’s right to possession under
the provisions above, Landlord may recover the following damages from Tenant:

- 21 -

          20.2.1          Past
Rent. The worth at the time of the award of any unpaid Rent that had been
earned at the time of termination; plus

          20.2.2          Rent
Prior to Award. The worth at the time of the award of the unpaid Rent that
would have been earned after termination, until the time of award; plus

          20.2.3          Rent
After Award. The worth at the time of the award of the amount by which the
unpaid Rent for the balance of the term after the time of award exceeds the
amount of the rental loss that Tenant proves could have been reasonably
avoided, if any; plus

          20.2.4          Proximately
Caused Damages. Any other amount necessary to compensate Landlord for all
detriment proximately caused by Tenant’s failure to perform its obligations
under this Lease or that in the ordinary course of things would be likely to
result therefrom, including, but not limited to, any costs or expenses
(including, without limitation, reasonable attorneys’ fees), incurred by
Landlord in (a) retaking possession of the Premises; (b) maintaining the
Premises after Default; (c) preparing the Premises or any portion thereof for
reletting to a new tenant, including, without limitation, any repairs or
alterations, whether for the same or a different use; (d) reletting the
Premises, including but not limited to, advertising expenses, brokers’
commissions and fees; and (e) any special concessions made to obtain a new
tenant.

          20.2.5          Other
Damages. 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 Law.

          As
used in subsections 20.2.1 and 20.2.2, the phrase “worth at the time of the
award” shall be computed by adding interest on all such sums from the date when
originally due at the Interest Rate. As used in subsection 20.2.3, the phrase
“worth at the time of the award” shall be computed by discounting the sum in
question at the Federal Reserve rate promulgated by the Federal Reserve office
for the district in which the Project is located, plus one percent (1%).

20.3          No Termination. A
termination of this Lease by Landlord or the recovery of possession of the
Premises by Landlord or any voluntary or other surrender of this Lease by
Tenant or a mutual cancellation thereof, shall not work a merger and shall at
the option of Landlord, terminate all or any existing franchises or
concessions, licenses, permits, subleases, subtenancies or the like between
Tenant and any third party with respect to the Premises, or may, at the option
of Landlord, operate as an assignment to Landlord of Tenant’s interest in same.
Following a Default, Landlord shall have the right to require any subtenants to
pay all sums due under their subleases directly to Landlord.

20.4          Waiver of Demand.
All demands for Rent and all other demands, notices and entries, whether
provided for under common law or otherwise, that are not expressly required by
the terms hereof, are hereby waived by Tenant.

20.5          Waiver of Redemption.
Tenant hereby waives for Tenant and for all those claiming under Tenant all
right now or hereafter existing to redeem by order or judgment of any court or
by any legal process or writ, Tenant’s right of occupancy of the Premises after
any termination of this Lease.

20.6          Deficiency. If it
is necessary for Landlord to bring suit in order to collect any deficiency,
Landlord shall have the right to allow such deficiencies to accumulate and to
bring an action on several or all of the accrued deficiencies at one time. Any
such suit shall not prejudice in any way the right of Landlord to bring a
similar action for any subsequent deficiency or deficiencies.

20.7          Counterclaim.
Tenant hereby waives any right to plead any counterclaim, offset or affirmative
defense in any action or proceedings brought by Landlord against Tenant for
possession of the Premises or otherwise, for the recovery of possession based
upon the non-payment of Rent or any other Default. This shall not, however, be
construed as a waiver of Tenant’s right to assert any claim in a separate
action brought by Tenant against Landlord. In the event Tenant must, because of
applicable court rules or statutes, interpose any counterclaim or other claim
against Landlord in such proceedings, Landlord and Tenant agree that, in
addition to any other lawful remedy of Landlord, upon motion of Landlord, such
counterclaim or other claim asserted by Tenant shall be severed from the
proceedings instituted by Landlord (and, if necessary, transferred to a court
of different jurisdiction), and the proceedings instituted by Landlord may
proceed to final judgment separately and apart from and without consolidation
with or reference to the status of any such counterclaim or any other claim
asserted by Tenant.

- 22 -

ARTICLE 21

BANKRUPTCY

21.1          In the event a
petition is filed by or against Tenant under the Bankruptcy Code, Tenant, as
debtor and debtor in possession, and any trustee who may be appointed agree to
adequately protect Landlord as follows:

          21.1.1          to
pay monthly in advance on the first day of each month as reasonable
compensation for use and occupancy of the Premises an amount equal to all Rent
due pursuant to this Lease;

          21.1.2          to
perform each and every obligation of Tenant under this Lease until such time as
this Lease is either rejected or assumed by order of a court of competent
jurisdiction;

          21.1.3          to
determine within sixty (60) days after the filing of such petition whether to
assume or reject this Lease;

          21.1.4          to
give Landlord at least thirty (30) days’ prior notice, unless a shorter period
is agreed to in writing by the parties, of any proceeding relating to any
assumption of this Lease;

          21.1.5          to
give at least thirty (30) days’ prior notice of any vacation or abandonment of
the Premises, any such vacation or abandonment to be deemed a rejection of this
Lease; and

          21.1.6          to
do all other things to benefit Landlord otherwise required under the Bankruptcy
Code. 

This Lease shall be deemed rejected in the event of the failure to comply
with any of the above.

21.2          In order to provide
Landlord with the assurance contemplated by the Bankruptcy Code, the following
obligations must be fulfilled, in addition to any other reasonable obligations
that Landlord may require, before any assumption of this Lease is effective:
(a) all monetary Defaults under this Lease must be cured within ten (10) days
after the date of assumption; (b) all other Defaults (other than those arising
solely on account of the bankruptcy filing) must be cured within fifteen (15)
days after the date of assumption; (c) all actual monetary losses incurred by
Landlord (including, but not limited to, reasonable attorneys’ fees) must be
paid to Landlord within ten (10) days after the date of assumption; and (d)
Landlord must receive within ten (10) days after the date of assumption a
security deposit in the amount of six (6) months’ Base Rent and an advance
prepayment of three (3) months’ Base Rent.

21.3          In the event this
Lease is assumed in accordance with the requirements of the Bankruptcy Code and
this Lease, and is subsequently assigned, then, in addition to any other
reasonable obligations that Landlord may require and in order to provide
Landlord with the assurances contemplated by the Bankruptcy Code, Landlord must
be provided with (a) a financial statement of the proposed assignee prepared in
accordance with generally accepted accounting principles consistently applied,
though on a cash basis, which reveals a net worth in an amount sufficient, in
Landlord’s reasonable judgment, to assure the future performance by the
proposed assignee of Tenant’s obligations under this Lease; or (b) a written
guaranty by one or more guarantors with financial ability sufficient to assure
the future performance of Tenant’s obligations under this Lease, such guaranty
to be in form and content satisfactory to Landlord and to cover the performance
of all of Tenant’s obligations under the Lease.

21.4          Neither Tenant nor
any trustee who may be appointed in the event of the filing of a petition under
the Bankruptcy Code shall conduct or permit the conduct of any “fire,”
“bankruptcy,” “going out of business” or auction sale in or from the Premises.

ARTICLE
22

LIEN FOR RENT

In consideration of the mutual benefits arising under
this Lease, Tenant hereby grants to Landlord a lien and security interest on all
property of Tenant now or hereafter placed in or upon the Premises, and such
property shall be and remain subject to such lien and security interest of
Landlord for payment of all Rent. The provisions of this Article relating to
such lien and security interest shall constitute a security agreement under the
Uniform Commercial Code in force in the State (the “UCC”) so that Landlord
shall have and may enforce a security interest on all property of Tenant now
or hereafter placed in or on the Premises, including, but not limited to, all
fixtures, machinery, equipment, furnishings and other articles of personal
property now or hereafter placed in or upon the Premises by Tenant. Landlord,
as secured party, shall be entitled to all of the rights and remedies afforded
a secured party under the UCC in addition to and cumulative of Landlord’s liens
and rights provided by law or by the other terms and provisions of this Lease,
and Landlord shall have the right to file a Financing Statement reflecting such
lien.

- 23 -

ARTICLE
23

HOLDING OVER

If after expiration of the Term, Tenant remains in
possession of the Premises, Landlord may, at its option, serve notice upon
Tenant that such hold over constitutes either: (a) a month-to-month tenancy
upon all the provisions of this Lease (except as to Term and Base Rent); or (b)
a tenancy at sufferance. If Landlord does not give said notice, Tenant’s hold
over shall create a tenancy at sufferance, subjecting Tenant to all the
covenants and obligations of this Lease. In either event, the monthly
installments of Base Rent shall be increased to one hundred fifty percent
(150%) of the monthly installments of Base Rent in effect at the expiration of
the Term. If a month-to-month tenancy is created, either party may terminate
such tenancy by giving the other party at least thirty (30) days advance notice
of the date of termination. In the case of a month to month tenancy or tenancy
at sufferance, Tenant shall also pay to Landlord all damages sustained by
Landlord resulting from retention of possession by Tenant. The provisions of
this Article shall not constitute a waiver by Landlord of any right of re­entry
as otherwise available to Landlord, nor shall receipt of any rent or any other
act appearing to affirm the tenancy operate as a waiver of the right to
terminate this Lease for a breach by Tenant hereof.

ARTICLE
24

SURRENDER OF PREMISES

Upon the expiration or earlier termination of this
Lease, Tenant shall peaceably surrender the Premises to Landlord broom-clean
and in the same condition as on the date Tenant took possession, except for (a)
reasonable wear and tear; (b) loss by fire or other casualty; and (c) loss by
condemnation. All fixtures, equipment, improvements, and appurtenances attached
to or built into the Premises at the commencement of or during the Term,
whether or not by or at the expense of Tenant, other than Tenant’s Property,
shall be and remain a part of the Premises, shall be the property of Landlord,
and shall not be removed by Tenant, except as directed by Landlord. Tenant
shall not be required to remove any leasehold improvements unless (i) such
removal is necessary to ensure that the Premises and Building comply with
applicable code at the time of surrender, including but not limited to removal
of wires located in risers and plenums without raceways or conduits; (ii) they
were made without the consent of Landlord; or (iii) Landlord notified Tenant
that removal would be required at the time Landlord approved Tenant’s plans
therefor. Tenant’s Property shall be and shall remain the property of Tenant
and may be removed by Tenant at any time during the Term; provided that, if any
of Tenant’s Property is removed, Tenant shall promptly repair any damage to the
Premises or to the Building resulting from such removal. If Tenant abandons or
surrenders the Premises or is dispossessed by process of law or otherwise, any
of Tenant’s Property left on the Premises shall be deemed abandoned, and, at
Landlord’s option, title shall pass to Landlord under this Lease as by a bill
of sale. If Landlord elects to remove all or any part of such Tenant’s
Property, the reasonable cost of removal, including, without limitation,
repairing any damage to the Premises or Building caused by such removal, shall
be paid by Tenant. On the Expiration Date, Tenant shall surrender all keys,
parking cards and other means of entry to the Premises, the Building and the
Project, and shall inform Landlord of the combinations and access codes for any
locks and safes located in the Premises. It is specifically agreed that any and
all telephonic, coaxial, ethernet, or other computer, word processing,
facsimile, or electronic wiring (“Telecom Wiring”) and any other components of
Tenant’s Telecommunications System shall be removed at Tenant’s cost at the
expiration of the Term, unless Landlord has specifically
requested in writing that the Telecom Wiring shall remain, whereupon the
Telecom Wiring shall be surrendered with the Premises as Landlord’s property.

ARTICLE
25

BROKERAGE FEES

Tenant warrants and represents that it has not dealt
with any real estate broker or agent in connection with this Lease or its
negotiation except as set forth on the Lease Summary. Tenant shall indemnify,
defend and hold Landlord harmless from any cost, expense, or liability,
(including, without limitation, costs of suits and reasonable attorneys’ fees)
for any compensation, commission, or fees claimed by any other real estate
broker or agent in connection with this Lease (including but not limited to any
expansions of the Premises and renewals) or its negotiation by reason of any
act of Tenant.

ARTICLE
26

NOTICES

Any notice, demand, request, consent, covenant,
approval or other communication to be given by one party to the other must be
in writing and (a) delivered personally; (b) mailed by certified United States
mail, postage prepaid, return receipt requested (except for statements and
invoices to be given in the ordinary course hereunder, which may be sent by
regular U.S. Mail); (c) sent by nationally recognized overnight courier; or (d)
sent by telecopy and confirmed by one of the other methods set forth herein.
The effective date of notice shall be (i) for any notice delivered in person,
the date of delivery; (ii) for any notice by U.S. mail, three (3) days after
the date of certification thereof; (iii) for any notice by overnight courier,
the

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next Business Day after deposit with the courier; and
(iv) for any notice by telecopy, the date of confirmation of receipt, if before
5:00 p.m. at the location delivered, or the next day if after 5:00 p.m. All
notices shall be delivered or addressed to the parties at their respective
addresses set forth on the Lease Summary. Either party may change the address
at which it desires to receive notice upon giving notice of such request to the
other party in the manner provided herein. Landlord and Tenant, and their
respective counsel, hereby agree that notice may be given hereunder by the
parties’ respective counsel, and that if any communication is to be given
hereunder by Landlord’s or Tenant’s counsel, such counsel may communicate
directly with all principals, as required to comply with the foregoing
provisions.

ARTICLE
27

RELOCATION OF PREMISES

If the Premises contain less than 10,000 square feet,
Landlord shall have the right to relocate the Premises to another part of the
Building in accordance with the following: (a) Landlord shall give Tenant at
least thirty (30) days’ notice of Landlord’s intention to relocate the
Premises; (b) the new premises shall be substantially the same in size,
dimensions, configuration, and decor as the Premises and, if the relocation
occurs after the Commencement Date, shall be placed in that condition by
Landlord at its cost; (c) as nearly as practicable, the physical relocation of
the Premises shall take place on a weekend and shall be completed before the
following Monday and if the physical relocation has not been completed in that
time, Rent shall abate from the time the physical relocation commences to the
time it is completed, but not to exceed three (3) Business Days from the time
that Landlord makes the new premises available to Tenant with all work to be
performed by Landlord thereon substantially complete; (d) upon completion of
such relocation, the new premises shall become the “Premises” under this Lease;
(e) all reasonable out of pocket costs incurred by Tenant as a result of the
relocation shall be paid by Landlord; (f) if the new premises are smaller than
the Premises as they existed before the relocation, the Base Rent and Tenant’s
Proportionate Share shall be reduced proportionately; and (g) the parties
hereto shall immediately execute an amendment to this Lease setting forth the
relocation of the Premises and the reduction of the Base Rent and Tenant’s
Proportionate Share, if any. Tenant hereby waives any claim against Landlord
for loss of business on account of any relocation.

ARTICLE
28

SIGNAGE

28.1          Tenant shall be
entitled, at its sole cost and expense, to identification signage outside of
the Premises on the floor on which the Premises are located. The location,
quality, design, style, lighting and size of such signage shall be consistent
with the Landlord’s Building standard signage program and shall be subject to
Landlord’s prior written approval.

28.2          Landlord shall pay
all costs of fabrication and installation of Building standard letters with
Tenant name and suite number at the main entrance to the Premises and one (1)
line on the Building directory to display Tenant’s name and location in the
Building. Any changes to the signage initially provided by Landlord shall be at
Tenant’s expense.

28.3          No other signage
shall be permitted without the prior consent of Landlord. If Landlord grants
such consent, the signage will be at Tenant’s expense. Tenant shall not affix,
paint, erect, or inscribe any sign, projection, awning, signal, or advertisement
of any kind to any part of the Premises, the Building or the Project,
including, without limitation, the inside or outside of windows or doors,
without the consent of Landlord. Landlord shall have the right to remove any
signs or other matter installed without Landlord’s permission without being
liable to Tenant by reason of such removal and to charge the reasonable cost of
removal to Tenant, payable within ten (10) days of written demand by Landlord.

28.4          Any damage to any
portion of the Project upon installation, maintenance, or removal of Tenant
signage shall be Tenant’s sole responsibility. Upon removal of Tenant’s
signage, the area affected thereby shall be repaired and restored to Landlord’s
specifications, at Tenant’s sole expense. Upon the expiration or earlier
termination of this Lease, Tenant will remove all of its signage. Upon removal
of its signage, Tenant shall repair all areas affected by such signage to a
condition acceptable to Landlord.

ARTICLE
29

LENDER PROVISIONS

29.1          Subordination.
This Lease is subject and subordinate to all present and future ground or
underlying leases of the Property and to the lien of any mortgages, deeds to
secure debt or trust deeds, now or hereafter in force against the Property or
the Building, if any, and to all renewals, extensions, modifications,
consolidations and replacements thereof (collectively, “Mortgages”), and to all
advances made or hereafter to be made upon the security of such Mortgages.
Tenant covenants and agrees in the event any proceedings are brought for the
foreclosure of any mortgage, deed to secure debt or trust deed or if any ground
or underlying lease is terminated, to attorn, without any deductions or
set-offs whatsoever, to the purchaser upon

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any such foreclosure sale, or to the lessor of such
ground or underlying lease, as the case may be (the “Purchaser”), if so
requested to do so by the Purchaser, and to recognize the Purchaser as the
lessor under this Lease. In no
event shall the Tenant have a right of offset against amounts due any Purchaser
on account of any defaults by Landlord under this Lease that pre-date the time
the Purchaser becomes the lessor hereunder, nor shall any Purchaser be liable
for any such defaults by Landlord. Tenant shall, within ten (10) Business Days
of request by Landlord, execute such further instruments or assurances as
Landlord may reasonably deem necessary to evidence or confirm the subordination
or superiority of this Lease to any Mortgages. Tenant waives the provisions of
any current or future statute, rule or law that 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. Notwithstanding the provisions hereof, should
any Mortgagee require that this Lease be prior rather than subordinate to its
Mortgage, or require that Tenant attorn to any Purchaser, then in such event,
this Lease shall become prior and superior to such Mortgage, or Tenant shall so
attorn, upon notice to that effect to Tenant from such Mortgagee. The aforesaid
superiority of this Lease to any Mortgage shall be self-operative upon the
giving of such notice and no further documentation other than such notice shall
be required to effectuate such superiority or attornment. In the event Landlord
or such Mortgagee desires confirmation of such superiority or attornment,
Tenant shall, promptly upon request therefor by Landlord or such Mortgagee, and
without charge therefor, execute a document acknowledging such priority or
attornment obligation to the Mortgagee as Landlord in the event of foreclosure
or deed in lieu thereof or termination of a ground lease.

29.2          Estoppel
Certificates. Within ten (10) Business Days after written request from
Landlord, Tenant shall execute and deliver to Landlord, or Landlord’s designee,
a written statement certifying (a) that this Lease is unmodified and in full
force and effect or is in full force and effect as modified and stating the
modifications; (b) the amount of Base Rent and the date to which Base Rent and
Additional Rent have been paid in advance; (c) the amount of any security
deposit with Landlord; (d) that Landlord is not in default hereunder or, if
Landlord is claimed to be in default, stating the nature of any claimed
default; and (e) such other matters as may be requested. Landlord and, any
purchaser, assignee or Mortgagee may rely upon any such statement. Tenant’s
failure to execute and deliver such statement within the time required shall be
conclusive against Tenant (1) that this Lease is in full force and effect and
has not been modified except as represented by Landlord; (2) that there are no
uncured defaults in Landlord’s performance and that Tenant has no right of
offset, counterclaim, or deduction against Rent; (3) not more than one (1)
month’s Rent has been paid in advance; and (4) as to the truth and accuracy of
any other matters set forth in the statement as submitted to Tenant.

29.3          Notice and Cure
Rights. Tenant agrees to notify any Mortgagee whose address has been
furnished to Tenant, of any notice of default served by Tenant on Landlord. If
Landlord fails to cure such default within the time provided for in this Lease,
such Mortgagee shall have an additional thirty (30) days to cure such default;
provided that, if such default cannot reasonably be cured within that thirty
(30) day period, then such Mortgagee shall have such additional time to cure
the default as is reasonably necessary under the circumstances.

29.4          Changes Requested
by Mortgagee. Tenant shall not unreasonably withhold its consent to changes
or amendments to this Lease requested by a Mortgagee, so long as such changes
do not alter the basic business terms of this Lease or otherwise materially diminish
any rights or materially increase any obligations of Tenant.

ARTICLE
30

MISCELLANEOUS

30.1          Parking.
Tenant shall be permitted to park automobiles as set forth in Exhibit H. 

30.2          Quiet Enjoyment.
Tenant, upon paying the Rent and performing all of its obligations under this
Lease, shall peaceably and quietly enjoy the Premises, subject to the terms of
this Lease and to any mortgage, deed of trust, lease, or other agreement to
which this Lease may be subordinated.

30.3          No Air Rights.
This Lease does not grant Tenant any rights to any view or to light or air over
any property, whether belonging to Landlord or any other person. If at any time
any windows of the Premises are temporarily darkened or the light or view
therefrom is obstructed by reason of any repairs, improvements, maintenance or
cleaning in or about the Building, the same shall be without liability to
Landlord and without any reduction or diminution of Tenant’s obligations under
this Lease.

30.4          Force Majeure.
Any prevention, delay, or stoppage of work to be performed by Landlord or
Tenant that is due to strikes, labor disputes, inability to obtain labor,
materials, equipment, or reasonable substitutes therefor, acts of God,
governmental restrictions, regulations, or controls, judicial orders, enemy or
hostile government actions, civil commotion, war, terrorism, fire, or other
casualty, or other causes beyond the reasonable control of the party obligated
to perform

- 26 -

hereunder, shall excuse performance of the work by
that party for a period equal to the duration of that prevention, delay, or
stoppage. Nothing in this Section shall excuse or delay Tenant’s obligation to
pay Rent or other charges under this Lease.

30.5          Accord and
Satisfaction; Allocation of Payment. No payment by Tenant or receipt by
Landlord of a lesser amount than the Rent provided for in this Lease shall be
deemed to be other than on account of the earliest due Rent; nor shall any
endorsement or statement on any check or letter accompanying any check or
payment as Rent be deemed an accord and satisfaction. Landlord may accept such
check or payment without prejudice to Landlord’s right to recover the balance
of the Rent or pursue any other remedy provided for in this Lease. In
connection with the foregoing, Landlord shall have the absolute right in its
sole discretion to apply any payment received from Tenant to any account or
other payment of Tenant then not current and due or delinquent. Pursuant to the
requirements of California Civil Code Section 1161.1(c), or any successor
statute, Tenant is hereby placed on actual notice that Landlord’s acceptance of
rent shall not constitute a waiver by Landlord of (a) any preceding breach by
Tenant of any provision of this Lease, other than the failure of Tenant to pay
the particular rent so accepted; or (b) any of Landlord’s rights, including but
not limited to any rights Landlord may have to recover possession of the
Premises or to sue for any remaining rent owed by Tenant.

30.6          Attorneys’ and
Other Fees. Should either party institute any action or proceeding to
enforce or interpret this Lease or any provision hereof, for damages by reason
of any alleged breach of this Lease or of any provision hereof, or for a
declaration of rights hereunder, the prevailing party in any such action or
proceeding shall be awarded from the other party all costs and expenses,
including, without limitation, attorneys’ and other fees, reasonably incurred
in good faith by the prevailing party in connection with such action or proceeding.
The term “attorneys’ and other fees” shall mean and include reasonable
attorneys’ fees, accountants fees, expert witness fees and any and all
consultants and other similar fees incurred in connection with the action or
proceeding and preparations therefor. The term “action or proceeding” shall
mean and include actions, proceedings, suits, arbitrations, appeals and other
similar proceedings.

30.7          Construction.
Headings at the beginning of each Article, Section and subsection are solely
for the convenience of the parties only and in no way define, limit, or enlarge
the scope or meaning of this Lease. Except as otherwise provided in this Lease,
all exhibits referred to herein are attached hereto and are incorporated herein
by this reference. This Lease shall not be construed as if either Landlord or
Tenant had prepared it, but rather as if both Landlord and Tenant had prepared
it.

30.8          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. In addition to any other remedies to which Landlord may be
entitled if Tenant breaches the foregoing covenant, Landlord shall have the
right to increase the Rent to then current market rent for the Building.

30.9          Governing Law.
This Lease shall be governed by, interpreted under, and construed and enforced
in accordance with the Laws of the State applicable to agreements made and to
be performed wholly within the State.

30.10          Consent. Unless
otherwise expressly set forth herein, all consents and decisions required or
permitted of Landlord hereunder shall be granted, withheld and made in
Landlord’s sole discretion. Tenant shall have no claim and hereby waives the
right to any claim against Landlord for money damages by reason of any refusal,
withholding, or delaying by Landlord of any consent, approval, statement, or
satisfaction that Landlord has agreed shall be subject to a standard of
reasonableness. In such event, Tenant’s only remedy therefor shall be an action
for specific performance, injunction, or declaratory judgment to enforce any
right to such consent, approval, statement, or satisfaction.

30.11          Authority. Tenant shall,
at Landlord’s request, deliver a certified copy of a resolution of its board of
directors, if Tenant is a corporation, or other satisfactory documentation, if
Tenant is another type of entity, authorizing execution of this Lease.

30.12          Duplicate Originals;
Counterparts. This Lease may be executed in any number of duplicate
originals, all of which shall be of equal legal force and effect. Additionally,
this Lease may be executed in counterparts, but shall become effective only
after each party has executed a counterpart hereof; all said counterparts, when
taken together, shall constitute the entire single agreement between the
parties.

30.13          Offer. The submission
and negotiation of this Lease shall not be deemed an offer to enter the same by
Landlord but the solicitation of such an offer by Tenant. Tenant agrees that
its execution of this Lease constitutes a firm offer to enter the same which
may not be withdrawn for a period of thirty (30) days after delivery to
Landlord (or such other period as may be expressly provided in any other
agreement signed by the parties). During such period and in reliance on the
foregoing, Landlord may, at Landlord’s option, proceed with any plans,
specifications, alterations, or improvements, and permit Tenant

- 27 -

to enter the Premises; but such acts shall not be
deemed an acceptance of Tenant’s offer to enter this Lease, and such acceptance
shall be evidenced only by Landlord’s signing and delivering this Lease to
Tenant.

30.14          Further Assurances.
Landlord and Tenant each agree to execute any and all other documents and to
take any further actions reasonably necessary to consummate the transactions
contemplated hereby.

30.15          Financial Statements. In
order to induce Landlord to enter into this Lease, Tenant agrees that it shall
promptly furnish Landlord, from time to time, upon Landlord’s written request,
with financial statements reflecting Tenant’s current financial condition.
Tenant represents and warrants that all financial statements, records, and
information furnished by Tenant to Landlord in connection with this Lease are
true, correct, and complete in all material respects.

30.16          Recording. Tenant shall
not record this Lease without the prior consent of Landlord.

30.17          Right to Lease. Landlord
reserves the absolute right to create such other tenancies in the Building as
Landlord shall determine to best promote the interests of the Building and the
Project. Tenant does not rely on the fact, nor does Landlord represent, that any
specific tenant or type or number of tenants shall, during the Term, occupy any
space in the Building or the Project.

30.18          Severability. In the
event any portion of this Lease shall be declared by any court of competent
jurisdiction to be invalid, illegal or unenforceable, such portion shall be
deemed severed from this Lease, and the remaining parts hereof shall remain in
full force and effect, as fully as though such invalid, illegal or
unenforceable portion had never been part of this Lease.

30.19          Survival. All indemnity
and other unsatisfied obligations set forth in this Lease shall survive the
termination or expiration hereof.

30.20          WAIVER OF TRIAL BY JURY. TO THE EXTENT
PERMITTED BY APPLICABLE
LAW, THE PARTIES HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS LEASE, OR THE
TRANSACTIONS OR MATTERS RELATED HERETO OR CONTEMPLATED HEREBY.

30.21          Successors and Assigns.
This Lease shall apply to and bind the heirs, personal representatives, and
permitted successors and assigns of the parties.

30.22          Integration of Other
Agreements; Amendments. This Lease sets forth the entire agreement and
understanding of the parties with respect to the matters set forth herein and
supersedes all previous written or oral understandings, agreements, contracts,
correspondence and documentation with respect thereto. Any oral representations
or modifications concerning this Lease shall be of no force or effect. No
provisions of this Lease may be amended or added to except by an agreement in
writing signed by the parties or their respective successors in interest.

30.23          TIME OF THE ESSENCE.
TIME IS OF THE ESSENCE OF THIS LEASE AND EACH AND EVERY TERM AND PROVISION
HEREOF.

30.24          Waiver. The waiver by a
party of any breach of any term, covenant, or condition of this Lease shall not
be deemed a waiver of such term, covenant, or condition or of any subsequent
breach of the same or any other term, covenant, or condition. No delay or
omission in the exercise of any right or remedy of a party shall impair such
right or remedy or be construed as a waiver of any default of the other party.
Consent to or approval of any act by a party requiring consent or approval of
the other party shall not be deemed to waive or render unnecessary such consent
to or approval of any subsequent act. Any waiver must be in writing and shall
not be a waiver of any other matter concerning the same or any other provision
of this Lease.

30.25          No Surrender. No act or
conduct of Landlord, including, without limitation, the acceptance of keys to
the Premises, shall constitute an acceptance of the surrender of the Premises
by Tenant before the expiration of the Term. Only a written notice from
Landlord to Tenant shall constitute acceptance of the surrender of the Premises
and accomplish a termination of the Lease.

30.26          Number and Gender. As
used in this Lease, the neuter includes masculine and feminine, and the
singular includes the plural.

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30.27          Days. The term “days,”
as used herein, shall mean actual days occurring, including Saturdays, Sundays
and Holidays.

30.28          Joint and Several Liability.
If Tenant consists of two (2) or more parties, each of such parties shall be
liable for Tenant’s obligations under this Lease, and all documents executed in
connection herewith, and the liability of such parties shall be joint and
several.

30.29          No Third Party Beneficiaries.
Except as otherwise provided herein, no person or entity shall be deemed to be
a third party beneficiary hereof, including but not limited to any brokers, and
nothing in this Lease, (either expressed or implied) is intended to confer upon
any person or entity, other than Landlord and Tenant (and their respective
nominees, successors and assigns), any rights, remedies, obligations or
liabilities under or by reason of this Lease.

30.30          No Other Inducements. It
is expressly warranted by each of the undersigned parties that no promise or
inducement has been offered except as herein set forth and that this Lease is
executed without reliance upon any statement or representation of any person or
party or its representatives concerning the nature and extent of damages, costs
and/or legal liability therefor.

30.31          Rule Against Perpetuities.
Notwithstanding any provision hereof to the contrary, in the event that the
Commencement Date has not occurred within five (5) years of the date of the
execution of this Lease by all parties hereto, then this Lease shall
automatically terminate and be without further force and effect. The parties
acknowledge that the terms of the foregoing sentence are included herein for
the purposes of ensuring that this Lease comply with the common law Rule
Against Perpetuities, and in no way is said five (5) year period intended as an
estimate of the expected timing of the Commencement Date.

30.32          Independent Covenants.
This Lease shall be construed as though the covenants herein between Landlord
and Tenant are independent and not dependent. Tenant hereby expressly waives
the benefit of any Laws to the contrary and agrees that if Landlord fails to
perform any of its obligations set forth herein, Tenant shall not be entitled
to make any repairs or perform any acts hereunder at Landlord’s expense or to
any setoff of Rent.

30.33          Arbitration. If this
Lease contains options where rental rates are expressly subject to arbitration,
and the parties do not agree upon the rental rate within the stipulated time,
no later than five (5) Business Days following the expiration of the stipulated
time, each party shall select an arbitrator having not less than ten (10)
years’ actual experience in the commercial real estate brokerage business, and
the arbitrators so selected shall immediately meet for the purpose of hearing
and deciding the dispute and fixing the relevant rate of rent. If the two
arbitrators selected agree on the rental rate, their decision shall be binding
on both parties. If the two arbitrators selected cannot agree on the rental rate
within ten (10) Business Days after appointment (the “Initial Review Period”),
but the rental rates differ by less than five percent (5%), the rental rate
shall be the average of the two rates. If the rental rates differ by more than
five percent (5%), no later than five (5) Business Days following the
expiration of the Initial Review Period, the two arbitrators shall select a
third arbitrator with qualifications similar to their own. Within ten (10)
Business Days following appointment, the third arbitrator shall select one of
the two rental rates promulgated by the first two arbitrators as the rental
rate for this Lease. If the arbitrators cannot agree on the third arbitrator,
they shall petition the presiding judge of the local State court having jurisdiction
to appoint such arbitrator to act as an umpire between the arbitrators selected
by Landlord and Tenant. The decision of the third arbitrator or presiding
judge, as the case may be, shall be binding on both parties. Landlord and
Tenant shall each be responsible to pay their respective arbitrators and will
share equally the cost of the third arbitrator.

30.34          No Discrimination. Tenant
covenants by and for itself, its heirs, executors, administrators and assigns,
and all persons claiming under or through Tenant, and this Lease is made and
accepted upon and subject to the condition that there shall be no
discrimination against or segregation of any person or group of persons, on
account of race, color, creed, sex, religion, marital status, ancestry or national
origin in the leasing, subleasing, transferring, use, or enjoyment of the
Premises, nor shall Tenant itself, or any person claiming under or through
Tenant, establish or permit such practice or practices of discrimination or
segregation with reference to the selection, location, number, use or
occupancy, of tenants, lessees, sublessees, subtenants or vendees in the
Premises.

30.35   OFAC Compliance.

          30.35.1
As used herein “Blocked Party” shall mean any party or nation that (a) is
listed on the Specially Designated Nationals and Blocked Persons List
maintained by the Office of Foreign Asset Control, Department of the U.S.
Treasury (“OFAC”) pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079
(Sept. 25, 2001) or other similar requirements contained in the rules and
regulations of OFAC (the “Order”) or in any enabling legislation or other
Executive Orders in

- 29 -

respect thereof (the Order and such other rules,
regulations, legislation, or orders are collectively called the “Orders”) or on
any other list of terrorists or terrorist organizations maintained pursuant to
any of the rules and regulations of OFAC or pursuant to any other applicable
Orders (such lists are collectively referred to as the “Lists”); or (b) has
been determined by competent authority to be subject to the prohibitions
contained in the Orders.

          30.35.2
As a material inducement for Landlord entering into this Lease, Tenant warrants
and represents that none of Tenant, any Affiliate of Tenant, any partner,
member or stockholder in Tenant or any Affiliate of Tenant, or any beneficial
owner of Tenant, any Affiliate of Tenant or any such partner, member or
stockholder of Tenant (collectively, a “Tenant Owner”): (a) is a Blocked Party;
(b) is owned or controlled by, or is acting, directly or indirectly, for or on
behalf of, any Blocked Party; or (c) has instigated, negotiated, facilitated,
executed or otherwise engaged in this Lease, directly or indirectly, on behalf
of any Blocked Party. Tenant shall immediately notify Landlord if any of the
foregoing warranties and representations becomes untrue during the Term.

          30.35.3
Tenant shall not: (a) transfer or permit the transfer of any interest in Tenant
or any Tenant Owner to any Blocked Party; or (b) make a Transfer to any Blocked
Party or party who is engaged in illegal activities.

          30.35.4
If at any time during the Term (a) Tenant or any Tenant Owner becomes a Blocked
Party or is convicted, pleads nolo contendere, or is indicted, arraigned, or
custodially detained on charges involving money laundering or predicate crimes
to money laundering; (b) any of the representations or warranties set forth in
this Section become untrue; or (c) Tenant breaches any of the covenants set
forth in this Section, the same shall constitute a Default. In addition to any
other remedies to which Landlord may be entitled on account of such Default,
Landlord may immediately terminate this Lease and refuse to pay any Allowance
or other disbursements due to Tenant under this Lease.

30.36          ERISA. Tenant has been
informed that a specified pension plan has an interest in the Project. Tenant
hereby represents and warrants that it is not a party in interest to such plan,
within the meaning of Section 3(14) of the Employee Retirement Income Security
Act of 1974, as amended.

30.37          Waiver of Certain California
Code Sections. The parties understand and agree that the provisions of
this Lease shall govern the parties’ rights and obligations with respect to the
matters addressed herein. Accordingly, and without limitation to the generality
of the provisions of this Lease concerning the waiver of certain statutory
provisions, Tenant hereby specifically waives its rights under the following
provisions of California Law (as each may be amended or recodified from time to
time): (a) Civil Code Sections 1932 and 1933(4), concerning the termination of
a lease (whether prior to or after the commencement of this Lease term) on
account of the condition of the premises; (b) Civil Code Sections 1941 and
1942, concerning the making of repairs at a landlord’s expense; (c) Code of
Civil Procedure Section 1265.130, concerning the right to petition the Superior
Court to terminate a lease in the event of a partial taking of the premises by
condemnation; and (d) Code of Civil Procedure Sections 473 and 1179 and Civil
Code Section 3275, concerning rights and redemption or reinstatement of a
tenant after it is dispossessed of its premises.

- 30 -

IN WITNESS WHEREOF the parties have executed this
Lease, under seal, as of the date first-above written.

	
 

	
 

	
 

	
 

	
 

	
 

	
VON KARMAN MICHELSON CORPORATION, a Delaware
  corporation

	
 

	
 

	
 

	
 

	
 

	
Witness:

	
 

	
By:            
  

	
 

	
 

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Printed Name: Signatory

	
 

	
Date: 

	
 

	
 

	
 

	

	
 

	
Title: Signatory

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date: Signatory

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(SEAL)

	
 

	
 

	
 

	
 

	
 

	
 

	
TENANT:

	
 

	
 

	
 

	
 

	
 

	
Witness:

	
 

	
QUALITY SYSTEMS, INC., a California corporation

By:     

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Date: 9/6/05

	
 

	
Printed Name: Paul Holt

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Title: CFO

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date: 9/6/05

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(SEAL)

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ADDENDUM
#1

Cancellation
Option

Provided no Default has occurred and Tenant has given
at least nine (9) months’ prior written notice (the “Notice Deadline”), Tenant
shall have the option to cancel its obligations under this Lease effective at
the end of the thirty-sixth (36th) month of the Term by making a payment to
Landlord no later than the end of the thirty-third (33rd) month of
the Term equal to the sum of Landlord’s unamortized deal costs (i.e. leasehold
improvements, commissions, etc.) associated with this Lease based upon an
interest rate of eight percent (8%) per annum, with such amortization
commencing after (i) the date any Conditional Rent has ceased (with respect to
the initial costs incurred by Landlord); and (ii) the date any such costs are
incurred by Landlord (if Tenant has expanded the Premises prior to such
termination) (collectively, the “Termination Fee”). At least ninety (90) days
prior to the Notice Deadline, Tenant shall send Landlord notice requesting the
amount of the Termination Fee, such that Tenant will know the correct
Termination Fee to be tendered to Landlord as provided above. If Tenant does
not request the amount of the Termination Fee as provided herein, Tenant’s
failure to tender the correct Termination Fee as provided above shall render
the exercise of such option null and void.

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EXHIBIT A–FLOOR PLAN OF THE PREMISES

- 1 -

EXHIBIT B–SITE PLAN OF BUILDING

- 1 -

EXHIBIT C - LEGAL DESCRIPTION 

Land situated
in the State of California, County of Orange, City of Irvine described as
follows:

PARCEL A:

PARCEL 2, AND
AN UNDIVIDED 31.17 PERCENT INTEREST IN PARCEL 5 AS SHOWN ON PARCEL MAP NO.
84-601 RECORDED IN BOOK 191, PAGES 18 THROUGH 21 INCLUSIVE OF PARCEL MAPS,
OFFICE RECORDS OF ORANGE COUNTY, CALIFORNIA. 

EXCEPT ANY AND
ALL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS AND OTHER
HYDROCARBONS BY WHATSOEVER NAME KNOWN, GEOTHERMAL STEAM, AND ALL PRODUCTS DERIVED
FROM ANY OF THE FOREGOING, THAT MAY BE WITHIN OR UNDER THE LAND, TOGETHER WITH
THE PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING AND OPERATING THEREFOR AND
STORING IN AND REMOVING THE SAME FROM THE LAND OR ANY OTHER LAND, INCLUDING
THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN
THOSE CONVEYED HEREBY, OIL OR GAS WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR
ACROSS THE SUBSURFACE OF THE LAND, AND TO BOTTOM SUCH WHIPSTOCKED OR
DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND
THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR,
DEEPEN AND OPERATE ANY SUCH WELLS OR MINES, WITHOUT, HOWEVER, THE RIGHT TO
DRILL, MINE, STORE, EXPLORE AND OPERATE THROUGH THE SURFACE OR THE UPPER 500
FEET OF THE SUBSURFACE OF THE LAND, AS RESERVED IN DEED FROM BERTEA
CORPORATION, RECORDED NOVEMBER 29, 1978 IN BOOK 12941, PAGE 977 OF OFFICIAL
RECORDS.

PARCEL B: 

A
NON-EXCLUSIVE EASEMENT APPURTENANT TO PARCEL A, ABOVE DESCRIBED, FOR THE MAINTENANCE
OF TREES, SHRUBS AND OTHER LANDSCAPING OVER AND ACROSS THE SOUTHWESTERLY 3.00
FEET OF PARCEL A AS SHOWN ON PARCEL MAP NO. 81-602, RECORDED IN BOOK 165, PAGES
18 THROUGH 21, INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER
OF SAID COUNTY.

PARCEL C:

AN UNDIVIDED
36.78 PERCENT OWNERSHIP INTEREST IN AND TO CERTAIN IMPROVEMENTS DESIGNATED AS
“CENTRAL PLANT FACILITIES” AS SUCH 

- 1 -

TERM AND
INTEREST IS DEFINED IN THAT CERTAIN TENANCY IN COMMON AGREEMENT AND AMENDED AND
RESTATED AGREEMENT OF ESTABLISHMENT OF COVENANTS, CONDITIONS AND RESTRICTIONS
AND GRANT OF EASEMENTS FOR KOLL CENTER IRVINE DATED AS OF MAY 10, 1989 AND
RECORDED ON MAY 18, 1989 AS INSTRUMENT NO. 89-265502, AND AS AMENDED BY AN
INSTRUMENT RECORDED JULY 11, 1989 AS INSTRUMENT NO. 89-365834, BOTH OF
OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA (COLLECTIVELY THE “AGREEMENT”).

PARCEL D:

A
NON-EXCLUSIVE EASEMENT APPURTENANT TO PARCEL A, ABOVE DESCRIBED, OVER, UNDER
AND ACROSS THE COMMON AREAS (AS DEFINED IN THE AGREEMENT) FOR THE CONSTRUCTION,
MAINTENANCE AND USE OF UTILITIES AS MORE FULLY DESCRIBED IN SECTION 8.01(a) OF
THE AGREEMENT. 

PARCEL E:

A NON-EXCLUSIVE
EASEMENT APPURTENANT TO PARCEL A, ABOVE DESCRIBED, OVER, UNDER AND ACROSS THE
COMMON AREAS FOR ACCESS, INGRESS AND EGREES OVER AND ACROSS ALL ACCESS WAYS
SUFFICIENT TO GUARANTEE ACCESS TO AND FROM ALL PARKING FACILITIES (AS DEFINED
IN THE AGREEMENT) AND FROM ADJACENT PUBLIC STREETS AS MORE FULLY DESCRIBED IN
SECTION 8.01(b) OF THE AGREEMENT.

PARCEL F:

A
NON-EXCLUSIVE EASEMENT APPURTENANT TO PARCEL A, ABOVE DESCRIBED, FOR
ACCESS, INGRESS AND EGRESS OVER AND THROUGH AN UNDERGROUND TUNNEL AS MORE FULLY
DESCRIBED IN SECTION 8.01(c) OF THE AGREEMENT. 

PARCEL G:

A
NON-EXCLUSIVE EASEMENT APPURTENANT TO PARCEL A, ABOVE DESCRIBED, OVER, UNDER
AND ACROSS THE COMMON AREAS FOR PARKING OF VEHICLES AS MORE FULLY DESCRIBED IN
SECTION 8.01(d) OF THE AGREEMENT, SUBJECT TO THE TERMS AND CONDITIONS SET FORTH
IN SUCH SECTION 8.01(d). 

          Together
with all of Grantor’s right, title and interest in and to all appurtenances
thereto and all improvements thereon.

- 2 -

EXHIBIT D - TERM CERTIFICATION

              The
undersigned, as Tenant, under that certain lease dated ______________________ (the
“Lease”) with Von Karman Michelson Corporation, as Landlord, hereby certifies
as follows:

1.           That the
undersigned has entered into occupancy of the Premises described in the Lease.

2.           That the
Lease is in full force and effect and has not been assigned, modified,
supplemented or amended in any way, except as follows:

3.           That the
Lease represents the entire agreement between the parties as to said leasing.

4.           That the
Commencement Date of the Lease is: __________________________. The Lease
expires on _________________________.

5.           That all
conditions of the Lease to be performed by Landlord and necessary to the
enforceability of the Lease have been satisfied.

6.           That there
are no defaults by either Tenant or Landlord under the Lease.

7.           That no
rents have been prepaid, other than as provided in the Lease.

8.           That on
this date there are no existing defenses or offsets, which the undersigned has
against the enforcement of the Lease by Landlord.

9.           That the
undersigned has received ________ set(s) of keys to the Premises on this date.

              EXECUTED this
________ day of___________________________, 20___.

	
 

	
 

	
 

	
 

	
TENANT:

	
 

	
 

	
 

	
 

	
 

	
QUALITY
  SYSTEMS, INC.

	
 

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Printed
  Name:

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	

- 1 -

EXHIBIT E – CONSTRUCTION

          This
Exhibit sets forth the terms and conditions relating to construction work in
the Premises. All references in this Exhibit to capitalized terms or “this
Lease” shall mean the relevant portion of the lease to which this Exhibit is
attached and of which this Exhibit forms a part.

          A.
            GENERAL CONDITIONS FOR CONSTRUCTION BY TENANT.

          1.           
 Inspection by Landlord. Landlord shall have the right to inspect work at
all times; provided however, Landlord’s failure to inspect any work shall in
no event constitute a waiver of any of Landlord’s rights hereunder, nor shall
Landlord’s inspection of the work constitute Landlord’s approval thereof.
Should Landlord disapprove any work, Landlord shall notify Tenant in writing of
such disapproval and shall specify the items disapproved. In the event Landlord
disapproves of any matter that might adversely affect any Building System, the
structure or exterior appearance of the Building or any other tenant, Landlord
may, take such action as Landlord deems necessary, at Tenant’s expense and
without incurring any liability on Landlord’s part, to correct any such matter,
including, without limitation, causing the cessation of the applicable work.

          2.
            Insurance. In addition to any insurance that may be required under this
Lease, Tenant shall secure, pay for and maintain or cause Tenant’s contractors
to secure, pay for and maintain during the continuance of any work, the
following insurance:

          (a)
          Worker’s Compensation and Employer’s Liability Insurance with limits of not
less than $500,000, or such higher amounts as may be required from time to
time by applicable Laws.

          (b)
          Commercial General Liability Insurance (including Contractor’s Protective
Liability) in an amount not less than $1,000,000 per occurrence, whether
involving bodily injury liability (or death resulting therefrom) or property
damage liability or a combination thereof with a minimum aggregate limit of
$2,000,000, and with umbrella coverage with limits not less than $5,000,000.
Such insurance shall provide for explosion and collapse, completed operations
coverage and broad form blanket contractual liability coverage and shall insure
against any and all claims for bodily injury, including death resulting
therefrom, and damage to the property of others and arising from its operations
under the contracts whether such operations are performed by Tenant’s
contractors or by anyone directly or indirectly employed by any of them.

          (c)
          Automobile Liability Insurance, including the ownership, maintenance and
operation of any automotive equipment, owned, hired, or non-owned in an amount
not less than $500,000 for each person in one accident, and $1,000,000.00 for
injuries sustained by two or more persons in any one accident and property
damage liability in an amount not less than $1,000,000.00 for each accident.
Such insurance shall insure against any and all claims for bodily injury,
including death resulting therefrom, and damage to the property of others
arising from its operations under the contracts, whether such operations are
performed by Tenant’s contractors, or by anyone directly or indirectly employed
by any of them.

          (d)
           “All-risk” builder’s risk insurance for the full insurable value of the work.
This insurance shall include the interests of Landlord and Tenant (and their
respective contractors and subcontractors of any tier to the extent of any
insurable interest therein) in the work and shall insure against physical loss
or damage including, without duplication of coverage, theft vandalism and
malicious mischief. If any materials will be stored offsite or will be in
transit to the job site and are not covered under said “all-risk” builder’s
risk insurance, then Tenant shall effect and maintain similar property
insurance on such materials. Any loss insured under said “all-risk” builder’s
risk insurance shall be adjusted with Landlord and Tenant and made payable to
Landlord, as trustee for the insureds, as their interests may appear.

          (e)
          All policies (except the worker’s compensation policy) shall be endorsed to
include the Landlord Related Parties as additional insureds. The waiver of
subrogation provisions contained in the Lease shall apply to all property
insurance policies to be obtained by Tenant pursuant to this section. All
insurance policies shall provide that all additional insureds shall be given
thirty (30) days’ prior written notice of any reduction, cancellation or
non-renewal of coverage (except that ten (10) days’ notice shall be sufficient
in the case of cancellation for non-payment of premium) and shall provide that
the insurance coverage afforded to the additional insureds shall be primary to
any insurance carried independently by said additional insureds. Certificates
for all insurance required hereunder shall be delivered to Landlord before the
commencement of construction and before any contractor’s equipment is moved
onto the Property.

- 1 -

          3.
            Lien Free Completion.

          (a)
          Landlord may require, at Landlord’s sole option, that Tenant provide to
Landlord such security as reasonably determined by Landlord to protect Landlord
against any liability in connection with the work, including but not limited to
a lien and completion bond naming Landlord as a co-obligee.

          (b)
          Tenant shall use its best efforts to obtain or cause to be obtained a “no-lien”
contract from each of Tenant’s contractors. All subcontractors under each of
the contracts shall be given a notice of such no-lien contract before such
subcontractor furnishes any labor or materials. If Tenant is unable to obtain
or cause to be obtained a no-lien contract from any proposed contractor, Tenant
shall give written notice of such fact to Landlord, and Landlord shall have the
right to disapprove such contactor. Upon completion of the work, Tenant shall
furnish Landlord with full and final waivers of liens and contractors’
affidavits and statements, in such form as may be required by Landlord,
Landlord’s title insurance company and any Mortgagee, from all parties
performing labor or supplying materials or services in connection with the work
showing that all of said parties have been compensated in full.

          (c)
          If Tenant fails to make any payment relating to the work, Landlord, as its
option, may complete the work, make such payment and hold Tenant liable for the
costs thereof.

          4.
            Plan Approval. Landlord’s approval of Tenant’s plans will not be
unreasonably withheld, provided that (a) they comply with all Laws; (b) the
improvements do not adversely affect (as determined by Landlord) the Building’s
structure or the Building’s Systems (including, without limitation, the
Building’s restrooms or mechanical rooms), the exterior appearance of the
Building, or the appearance of the Common Areas; (c) the plans are sufficiently
detailed to allow construction of the improvements in a good and workmanlike
manner; and (d) construction of the improvements conforms to the requirements
set forth in this Exhibit. Notwithstanding that any plans prepared by Tenant or
its space planner, architect or engineer are reviewed by Landlord and
notwithstanding any advice or assistance that Landlord may render to Tenant,
Landlord shall have no liability whatsoever for the completeness, design or
sufficiency of such plans, or the compliance of such plans with Laws.

          5.
            Change Orders. Tenant shall make no changes or modifications to the
plans approved by Landlord without Landlord’s prior written consent. Such
approval shall not be unreasonably withheld or delayed, as long as such
requested change meets (a) through (d) in Section 4 above and the same would
not delay the completion of the work. If any change order would increase the
cost of construction, as a condition of such approval Landlord may require that
Tenant deposit any increased cost with Landlord, or provide Landlord with other
security therefor acceptable to Landlord.

          6.
            Pre-Construction Activity. At least thirty (30) days prior to
commencement of any work, Tenant shall submit the following information and
items to Landlord for Landlord’s review and approval:

          (a)
          The proposed plans.

          (b)
          A detailed critical path construction schedule containing the major components
of the work and the time required for each, including the scheduled
commencement date of construction of the work, milestone dates and the
estimated date of completion of construction.

          (c)
          An itemized statement of estimated construction cost, including fees for
permits and architectural and engineering fees.

          (d)
          Evidence satisfactory to Landlord in all respects of Tenant’s ability to pay
the cost of the work as and when payments became due.

          (e)
          The names and addresses of Tenant’s contractors (and said contractor’s
subcontractors) and materialmen to be engaged by Tenant for the work
(individually, a “Tenant Contractor,” and collectively, “Tenant’s
Contractors”). Landlord may designate a list of approved contractors for
performance of those portions of work involving electrical, mechanical,
plumbing, heating, air conditioning or life safety systems, from which Tenant
must select its contractors for such, designated portions of work (“Approved
Contractors”). Landlord has the right to disapprove any of Tenant’s Contractors
that are not Approved Contractors.

          (f)
          Certificates of insurance as required herein.

- 2 -

No work by
Tenant shall proceed until Landlord has approved all of the foregoing items.

          7.
          Performance of Work. 

          (a)
          All work by Tenant shall be performed under a valid permit when required, a
copy of which shall be furnished to Landlord before commencement of such work.

          (b)
          All work shall comply in all respects with (i) all applicable Laws; (ii)
applicable standards of the American Insurance Association (formerly, the
National Board of Fire Underwriters) and the National Electrical Code; and
(iii) building material manufacturer’s specifications.

          (c)
          Tenant’s contractors shall be licensed contractors, possessing good labor
relations, capable of performing quality workmanship and working in harmony
with Landlord’s contractors and subcontractors in the Building. All work shall
be coordinated with any other construction or other work in the Building in
order not to adversely affect construction work being performed by or for
Landlord or its tenants.

          (d)
          Tenant shall use only new, first-class materials, except where explicitly shown
in the plans approved by Landlord. All work shall be done in a good and
workmanlike manner. Tenant shall obtain contractors’ warranties of at least one
(1) year duration from the completion of the work against defects in materials
and workmanship.

          (e)
          At Tenant’s expense, Tenant shall engage the services of an on-site project
manager approved in advance by and reasonably acceptable to Landlord, who will
be charged with the task of performing daily supervision of the work. Such
on-site manager shall be familiar with the Rules and Regulations and the
construction procedures for the Building and all personnel of the Building
engaged directly or indirectly in the management, operation and construction of
the Building. Such on-site project manager shall be accountable and responsible
to Tenant and to Landlord and, where necessary, shall serve as a liaison
between Landlord and Tenant with respect to the work.

          (f)
          Tenant shall pay to Landlord a percentage of the cost of any tenant work (such
percentage, which shall vary depending upon whether or not Tenant orders the
work directly from Landlord, to be established by Landlord on a uniform basis
for the Building) sufficient to compensate Landlord for all overhead, general
conditions, fees and other costs and expenses arising from Landlord’s
supervision of or involvement with such work.

          8.
            As-Built Plans and Specifications. Immediately after completion of any work on
the Premises by Tenant, Tenant shall deliver to Landlord “as-built” plans and
specifications (including all working drawings) for the work.

          9.
            Miscellaneous.

          (a)
          Landlord shall, consistent with its obligations to other tenants of the
Building, make the freight elevator reasonably available to Tenant in
connection with its work, subject to scheduling by Landlord and the Rules and
Regulations.

          (b)
          All construction work shall be performed in conformity with the Contractor
Rules and Regulations set forth in Exhibit E-2. Landlord shall have the
right to order Tenant or any of Tenant’s contractors who violate the
requirements imposed on Tenant or Tenant’s contractors in performing work to
cease work and remove its equipment and employees from the Building.

          B.
            INITIAL BUILD-OUT

          1.
            Definitions. 

          (a)
          “Substantial Completion” of the Premises shall occur upon the completion of
construction of the Tenant Improvements in the Premises, with the exception of
any Punchlist Items and any tenant fixtures, work-stations, built-in furniture,
or equipment to be installed by Tenant. Substantial Completion shall have
occurred even though minor details of construction, decoration, landscaping or
mechanical adjustments remain to be completed.

          (b)
          “Tenant Delay” shall mean each day of delay in the performance of the work that
occurs because of (i) Tenant’s failure to timely deliver or approve any
required documentation; (ii) any change by Tenant to the construction plans;
(iii) any specification by Tenant of materials or installations in addition to
or other than Landlord’s standard finish-out materials or Tenant’s requirement
for materials, components, finishes or improvements that are not available in a

- 3 -

commercially
reasonable time given the anticipated Possession Date; (iv) postponement of
any work at the request of Tenant; (v) the failure by Tenant’s architect, space
planner or other agent or contractor, to timely prepare plans, pull permits,
provide approvals or perform any other act required hereunder; (vi) the failure
of Tenant to pay, when due, any amounts required to be paid by Tenant; (vii)
Tenant’s failure to attend any meeting with Landlord, any architect, design
professional, or any contractor, or their respective employees or representatives,
as may be required or scheduled hereunder or otherwise necessary in connection
with the preparation or completion of any construction documents; (viii) a
breach by any Tenant Related Parties of the terms of this Exhibit or this
Lease; (ix) changes in any of the construction plans because the same do not
comply with Laws (if the same were prepared by Tenant); and (x) any other acts
or omissions of any Tenant Related Parties.

          (c)
          “Tenant Improvements” shall mean the improvements to the Premises set forth in
Exhibit E-l.

          (d)
          “Total Construction Costs” shall mean the entire cost of constructing the
Tenant Improvements, including space planning and preparation of the
construction plans, labor and materials, electrical and other utility usage
during construction, additional janitorial services, trash removal, general
tenant signage, related taxes and insurance costs, the fees of any construction
managers and any administrative fee to Landlord.

          2.
            Punchlist. If Landlord constructs the Tenant Improvements, Landlord will
notify Tenant when Landlord considers Substantial Completion to have occurred.
Within three (3) Business Days thereafter, Landlord’s representative and
Tenant’s representative shall conduct a walk-through of the Premises and
identify any necessary touch-up work, repairs and minor completion items that
are necessary for final completion of the Tenant Improvements (the “Punchlist
Items”). Neither Landlord’s representative nor Tenant’s representative shall
unreasonably withhold his or her agreement on Punchlist Items. Landlord shall
use reasonable efforts to complete all Punchlist Items within thirty (30) days
after agreement thereon; however, Landlord shall not be obligated to engage
overtime labor in order to complete such items.

          3.
            Warranties. If Landlord constructs the Tenant Improvements, Landlord
shall use reasonable efforts to obtain a warranty from Landlord’s contractor
against defects in materials and workmanship for one (1) year following
Substantial Completion. Landlord hereby assigns to Tenant all warranties and
guaranties by the contractor, and Tenant hereby waives all claims against
Landlord relating to, or arising out of the construction of, the Tenant
Improvements.

          4.
            Miscellaneous.

          (a)
          Provided the same will not interfere with the Landlord Work, Landlord shall
allow Tenant access to the Premises prior to the Substantial Completion of the
Landlord Work for the purpose of installing Tenant’s equipment or fixtures
(including Tenant’s data and telephone equipment) in the Premises. Prior to
Tenant’s entry into the Premises as permitted by the terms of this section,
Tenant shall submit a schedule detailing the timing and purpose of Tenant’s
entry to Landlord for its approval. Any such early occupancy shall be on all
the terms and conditions contained in this Lease, except for the payment of
Base Rent and Tenant’s Cost Allocation.

          (b)
          Unless otherwise indicated, all references herein to a “number of days” shall
mean and refer to calendar days. If any item requiring approval is timely
disapproved by Landlord, the procedure for preparation of the document and
approval thereof shall be repeated until Landlord approves the document.

          (c)
          Notwithstanding any provision to the contrary contained in this Lease, if a
Default has occurred at any time prior to Substantial Completion, then (i) in
addition to all other rights and remedies granted to Landlord pursuant to this
Lease, Landlord shall have the right to cause the contractor to cease the
construction of the Premises (in which case, Tenant shall be responsible for
any delay in Substantial Completion caused by such work stoppage); and (ii)
all other obligations of Landlord under the terms of this Exhibit shall be
forgiven until such time, if any, as such Default may be cured.

- 4 -

EXHIBIT E-1 – TENANT IMPROVEMENT WORK

          Landlord
shall construct the Tenant Improvements in substantial accordance with a
mutually agreed upon final plan, provided, however, the Total Construction
Costs that result from any changes to the initial space and pricing plan
attached hereto as Schedule 1 or any shall be at Tenant’s sole cost and
expense. Additionally, notwithstanding anything in the Lease to the contrary,
Tenant shall be solely responsible for the Total Construction Costs for any and
all moveable sound doors located in the Premises and for any “Bid Alternates”
as shown on page 8 of Schedule 1. Tenant hereby agrees to pay all Total
Construction Costs owed by Tenant to Landlord, upon demand, prior to
Substantial Completion of the Tenant Improvements.  

- 1 -

Schedu1e 1

- 2 -

- 3 -

- 4 -

- 5 -

LEAVE SPRINKLERS INTACT AS-IS. ALL FIRE LIFE SAFETY EQUIPMENT SHALL BE
LEFT IN PLACE. IF STRUCTURE IS HOLDING THE ITEM IS REMOVED,
THE
CONTRACTOR SHALL SUPPORT THE FIRE LIFE SAFETY DEVICE IN A MANNER THAT
DOES NOT IMPAIR IT’S FUNCTION AT ANY TIME. 

DEMO ALL DATA/TELE CABLING IN CEILING BACK TO ORIGINAL DEMARK. 

GENERAL NOTES 

ABANDON PLUMBING LINES AND DRAINS TO BE REMOVED BACK TO POINT OF
ORIGINATION
AS REQUIRED FOR NEW TENANTS BUILD-OUT. 

SPACE SHOULD BE LEFT IN A CLEAN AND BROOM SWEPT CONDITION. 

INTENT OF THE DRAWINGS IS TO SHOW EXISTING SITE AND BUILDING
CONDITIONS
WITH INFORMATION DEVELOPED FROM THE ORIGINAL CONSTRUCTION DOCUMENTS,
FIELD AND OWNERS RECORDS, AND TO GENERALLY SHOW THE AMOUNT AND TYPE OF
DEMOLITION AND REMOVALS REQUIRED
TO PREPARE EXISTING AREAS FOR WORK.
CONTRACTOR SHALL MAKE A DETAILED SURVEY OF EXISTING CONDITIONS PERTAINING
TO THE WORK BEFORE COMMENCING DEMOLITION. REPORT DISCREPANCIES BETWEEN
DRAWINGS AND
ACTUAL CONDITIONS TO THE ARCHITECT FOR INSTRUCTIONS. 

MAINTAIN FULLY CHARGED FIRE EXTINGUISHER READILY AVAILABLE DURING ALL
DEMOLITION OPERATIONS. 

ALL REMOVED MATERIAL OTHER THAN ITEMS TO BE SALVAGED OR REUSED SHALL
BECOME CONTRACTORS PROPERTY U.N.O., AND SHALL BE REMOVED FROM OWNER’S
PROPERTY. CLEAN UP AND DISPOSE OF DEBRIS PROMPTLY AND CONTINUOUSLY AS
THE WORK PROGRESSES. SECURE AND PAY FOR REQUIRED HAULING PERMITS, PAY
DUMPING
FEES AND CHARGES. 

- 6 -

PRICING KEYNOTES 

GO TO VERIFY IF EXISTING FOLDING PARTITION AT GROUND FLOOR CAN BE REUSED.
IF NOT, PROVIDE PRICE FOR NEW FOLDING PARTITION BY MODERNFOLD. 
 

NEW CARPET THROUGHOUT U.N.O., DESIGNWEAVE TEMPEST ESQUIRE W/ 4" BURKE
BASE, COLORS TBS. 

NEW VCT FLOORING, ARMSTRONG STANDARD EXCELON WITH 4" BURKE BASE, COLORS
TBS. PROVIDE TRANSITIONS STRIPS WHERE NEEDED. 

PROVIDE AND INSTALL BUILDING STANDARD LOCKSET AT ALL OFFICES DOORS. 

PAINT ENTIRE SUITE. ICI EGGSHELL FINISH 2 COATS MIN. COLOR TBS. 

EXISTING RELOCATED SINGLE INTERIOR DOOR AND ASSEMBLY. VERIFY DOOR IS IN
PROPER WORKING ORDER, REPAIR AS REQUIRED. CLEAN AS REQUIRED FOR LIKE
NEW
APPEARANCE. 

NEW PLASTIC LAMINATE UPPER AND LOWER CABINETS WITH BUILDING STANDARD SINK
PER ADA, OPENING FOR UNDERCOUNTER REFRIGERATOR, OPENING FOR TENANT
SUPPLIED AND INSTALLED MICROWAVE, COFFEE MAKER AND
WATER COOLER. 

PROVIDE AND INSTALL TWO (2) SEPERATE T-STATS AT TRAINING ROOM. 

LIGHTS AT TRAINING ROOMS TO BE SWITCHED SEPERATELY. SEE BID ALTERNATES 
‘B’ AND ‘C’. 

NEW 20 MINUTE RATED SINGLE CORRIDOR DOOR. MATCH EXISTING IN CORRIDOR. 

NEW 3/4" FIRE TREATED PLYWOOD TELEPHONE BACKBOARD WITH 2" CONDUIT TO BASE
BUILDING TELEPHONE ROOM. PAINT TO MATCH WALL. 

1

2

3

4

5

6

7

8

9

10

11

- 7 -

BID ALTERNATE 

PROVIDE ALTERNATE PRICE FOR BLACK OUT BLINDS BY MECHO SHADE AT ALL  

EXTERIOR GLAZING, TYPICAL. 

PROVIDE ALTERNATE PRICE TO REWORK 2Î4 LIGHT FIXTURES AT TRAINING ROOM TO 
HAVE THE CAPABILITY OF HALF ON AND HALF OFF. 

PROVIDE ALTERNATE PRICE FOR SIX (6) NEW BUILDING STANDARD DOWNLIGHTS AT 
TRAINING ROOMS ON DIMMER SWITCHES – EACH ROOM SWITCHED SEPARATE. EXIT 
2Î4’S WILL BE RELOCATED AS REQUIRED, PROVIDE SEPARATE
SWITCH FOR 2Î4. 

A

B

C

- 8 -

PRICING SYMBOLS 

PRICING KEYNOTE.

DEMOLITION KEYNOTE.

EXISTING DOOR TO REMAIN. 

EXISTING DOOR TO BE REMOVED. 

REMOVE ALL HVAC/ELECTRICAL TIES BETWEEN SUITES. 

EXISTING PARTITION TO BE REMOVED. 

EXISTING PARTITION TO REMAIN 

NEW PARTITION, TO SUSPENDED CEILING ABOVE

A 

UNO. 

NEW PARTITION, FLOOR TO SUSPENDED CEILING GRIP, 2-1/2"Î25GA. MTL. STUDS 
@24" O.C. W/ 5/8" TYP. “X” GYP. BD., 

A

#

#

- 9 -

DEMOLITION NOTES 

REMOVE INTERIOR TENANT NON LOAD BEARING WALL AND ASSOCIATED 
ELECTRICAL, DATA AND TELEPHONE. PULL ALL WIRING BACK TO APPROPRIATE 
SUB PANELS. 

CONTRACTOR TO REMOVE EXISTING DOOR AND FRAMES. WHERE POSSIBLE, REUSE/ 
RELOCATE ALL EXISTING DOOR ASSEMBLIES IN NEW BUILD OUT.

REMOVE ALL FLOOR COVERING THROUGHOUT TENANT SPACE. SCRAPE ALL FLOORS 
CLEAN OF ALL ADHESIVE, PAD ETC. TO SMOOTH FINISH AND BROOM CLEAN.
REMOVE EXISTING WALL FINISHES, SKIM COAT TENANT WALLS TO
PREPARE FOR 
APPROVED FINISH. 

LEAVE SPRINKLERS INTACT AS-IS DURING DEMO ONLY. ALL FIRE LIFE SAFETY 
EQUIPMENT SHALL BE LEFT IN PLACE. IF STRUCTURE IS HOLDING THE ITEM IS 
REMOVED, THE CONTRACTOR SHALL SUPPORT THE FIRE LIFE
SAFETY DEVICE IN A 
MANNER THAT DOES NOT IMPAIR IT’S FUNCTION AT ANY TIME. 

CUT IN NEW 3' -0" DOORWAY, HEIGHT TO MATCH EXISTING AT CORRIDOR. 

REMOVE EXISTING GLASS AND STORE IN BUILDING STORAGE OR AS DIRECTED 
BY BUILDING OWNER. 

1

2

3

4

5

6

- 10 -

PRICING GENERAL NOTES 

PROVIDE BACKING IN WALLS FOR WALL HUNG FIXTURES AND CABINETS

FE

PROVIDE FIRE EXTINGUISHER IN SEMI-RECESSED CABINET- WHITE J.L 

INDUSTRIES OR EQ. 75' -0" APART.

ALL FURNITURE IS SUPPLIED BY TENANT- NOT IN CONTRACT.

NEW ELECTRICAL PER PLAN.

CONTRACTOR TO REPLACE ALL DISCOLORED OR DAMAGED CEILING TILES WITH NEW
TO MATCH EXISTING. 

CONTRACTOR TO ALLOW FOR NEW BUILDING STANDARD EXIT SIGNS AND NEW 
FLUORESCENT FIXTURES AS REQUIRED AT NEW OFFICE LAYOUT. 

STANDARD COLOR FOR OUTLETS IS TO MATCH EXISTING, CHANGE OUT ALL OUT NOT 
MATCHING BUILDING STANDARD.

TOTAL ENERGY CONSUMPTION FOR POWER IS 6.0 WATTS PER SQUARE FOOT OR AS 
REQUIRED BY C.A.C. TITLE 24. 

ELECTRICAL CONTRACTOR TO VERIFY THAT ALL CIRCUITS ARE ADEQUATE FOR NEW 
REQUIREMENTS, INSTALL NEW CONDUIT IF REQUIRED. 

CONTRACTOR SHALL PROVIDE ELECTRICAL AND MECHANICAL DRAWINGS STAMPED 
AND SIGNED BY LICENSED ENGINEERS. - ALL HVAC, MECHANICAL, FIRE LIFE SAFETY, 
SPRINKLERS AND ELECTRICAL WORK TO BE DESIGN-BUILD. 

HEIGHT OF EXISTING ELECTRICAL OUTLETS MAY REQUIRE RELOCATION. 

- 11 -

POWER & TELEPHONE SYMBOLS 

EXISTING DUPLEX ELECTRICAL OUTLET.

EXISTING DATA OUTLET.

EXISTING QUADRAPLEX ELECTRICAL OUTLET.

NEW SINGLE GANG TELEPHONE BOX/DATA. PROVIDE 3/4" CONDUIT AND STUB-UP
AT +6" ABOVE THE CEILING MOUNT BOX AT THE SAME HEIGHT AS THE
ELECTRICAL OUTLET BOX(V/D CABLES).

NEW DEDICATED DUPLEX ELECTRICAL OUTLET. OUTLET IS WALL MOUNTED 15" 
AFF UNLESS NOTED OTHERWISE, PROVIDE 120V, SINGLE PHASE, 15 AMP., THREE
WIRE (GROUNDED), WITH 1/2" CONDUIT.

NEW DUPLEX ELECTRICAL OUTLET. OUTLET IS WALL MOUNTED 15" AFF UNLESS
NOTED OTHERWISE, PROVIDE 120 V, SINGLE PHASE, 15 AMP, THREE WIRE
(GROUNDED) WITH 1/2" CONDUIT.

- 12 -

EXHIBIT
E-2

CONTRACTOR RULES AND REGULATIONS

          1.      All
contractors, subcontractors, and materialmen (“Contractor Parties”) will check
in and out with Building management.

          2.      
All Contractor Parties will be appropriately dressed to work in an office
environment:  shirts with sleeves (T-shirts
with company name are acceptable), pants (no shorts), work shoes with socks,
and whatever other clothing as may be appropriate.  No torn or worn-out clothing is permitted.   Contractor
Parties will display a courteous demeanor towards tenants,
customers, visitors and general public. No Contractor Parties shall remain in
the Building after work hours.

           3.
     All Contractor Parties shall clean the job site
after meals are eaten. Alcoholic beverages and drugs are not to be brought
into, or consumed in the Building. Personnel appearing to be under the
influence of either alcoholic beverages or drugs will not be allowed into the
Building.

          4.      
Parking for all personnel must be arranged prior to commencement of work, and will
be provided in designated areas only.  Vehicles
in unapproved areas will be subject to citation and towing without notice.   Any
parking charges are the sole responsibility of the Contractor Parties.

          5.      Access
to the Building shall be by freight elevator only.

          6.      Delivery
of materials, use of loading dock, freight and passenger elevators must be
scheduled with Landlord prior to receipt of materials.

          Delivery
Dock Hours:           Monday – Friday 7:00 A.M. to 5:00 P.M. 

          Freight
Elevator Hours:        Monday – Friday
7:00 A.M. to 5:00 P.M. 

          Other
hours of access are available with prior arrangement.

          7.      All
Contractor Parties shall maintain the condition of docks, elevators and
corridors used.

          8.      All
materials are to be stored at the job site or in designated storage areas. No
materials are to be stored in corridors or in public areas. Landlord may
provide minimum secured storage for materials with prior arrangement.

          9.      Contractor
Parties must arrange access to areas other than job site at least 24 hours in
advance.

          10.     All
work areas are to be visually and materially protected from the tenants and
general public. If required by Landlord, the job site shall be sealed off from
the balance of the adjoining space so as to minimize the disbursement of dirt,
debris and noise.

          11.     Radios
or other excessive noise are not permitted.

          12.     The
use of toxic materials or odor-causing liquids must be scheduled with Landlord
in advance and prior notice must be given to the tenants adjacent to the job
site.

          13.     All
non-job site areas are to be kept clean and dust free.   No
material residue shall be tracked through corridors or public areas.

          14.     Contractor
Parties shall ensure the job site is left
clean and secure at the completion of each work day. Trash and excess materials
shall (a) not remain on, in, or at the job site; (b) be disposed of in bins or
by truck promptly; (c) not be staged in storage at the job site in any public
or adjacent areas; and (d) shall not be disposed of the building’s trash receptacles. 

- 1 -

EXHIBIT
F - BUILDING SERVICES

          Subject
to all Laws applicable thereto and the Rules and Regulations, Landlord agrees
to furnish the following services in a manner that such services are
customarily furnished to comparable projects in the area:

          1.     Electrical
power for normal general office use, as determined by Landlord.

          2.     Heating,
ventilation, and air-conditioning (“HVAC”), when necessary for normal comfort
for normal office use of the Premises during Business Hours. If Tenant desires
HVAC at any other time, Landlord shall use reasonable efforts to furnish such
service upon reasonable notice from Tenant, and Tenant shall pay Landlord’s
standard charges therefor on demand.

          3.     City
water from the regular Building outlets for drinking, lavatory and toilet
purposes.

          4.     Maintenance
of the Common Areas.

          5.     Non-exclusive
automatic passenger elevator service, provided that the number of elevators
available after Business Hours may be limited as Landlord deems reasonably
necessary.

          6.     Replacement
for building standard lights bulbs. Tenant shall bear the cost of replacement
of non standard bulbs, and all fixtures, starters and ballasts within the
Premises.

          7.     Restroom
supplies.

          8.
    Janitorial services five (5) days per week,
except for Holidays, in and about the Premises and window washing services in a
manner consistent with other comparable buildings in the vicinity of the
Building.

          9.     Landlord
may, from time to time, provide such on-premises courtesy personnel (who will
not necessarily have any responsibilities for any security), the cost of which
shall be an Operating Cost hereunder; but Landlord makes no representation or
warranty, written or oral, express or implied, that any security will be
provided to the Project, or if provided, what the level of that security may
be. Landlord does not guarantee any level of security and is released from any responsibility
for any claims based upon assertions that Landlord failed to provide adequate
security to the Project, the Premises, or otherwise.

“Business Hours” shall mean Monday through Friday,
from 8:00 a.m. to 6:00 p.m. and Saturdays from 8:00 a.m. to 12:00 p.m., excluding Holidays.

- 1 -

EXHIBIT
G - RULES AND REGULATIONS

          1.
     The Common Areas shall not be obstructed by any
of the tenants or used by them for any purpose other than for ingress to and
egress from their respective premises.   The Common Areas are not for the general
public, and Landlord shall in all cases retain the right to control and prevent
access thereto of all persons whose presence in the judgment of Landlord would
be prejudicial to the safety, character, reputation, and interest of the
Building and its tenants; provided that nothing herein contained shall be
construed to prevent such access to persons with whom any tenant normally deals
in the ordinary course of its business, unless such persons are engaged in
illegal activities.   If the responsibility for the HVAC system is
not a tenant’s, no tenant and no employee or invitee of any tenant shall go
upon the roof of the Building except in the case of maintenance of the HVAC
system.

          2.     The
Premises shall not be used for the storage of merchandise held for sale to the
general public or for lodging. No cooking shall be done or permitted on the
Premises except that private use by Tenant of approved microwave ovens,
equipment for brewing coffee, tea, hot chocolate, and similar beverages shall
be permitted, provided that such use is in accordance with all Laws.

          3.     No
tenant shall employ any person or persons other than the janitor of Landlord
for the purpose of cleaning its Premises unless otherwise agreed to by Landlord
in writing. Except with the consent of Landlord, no person or persons other
than those approved by Landlord shall be permitted to enter the Building for
the purpose of cleaning the same. No tenant shall cause any unnecessary labor
by reason of such tenant’s carelessness or indifference in the preservation of
good order and cleanliness. Tenant shall promptly notify Landlord of any carpet
or wall stains requiring attention. Janitor service will not be furnished on
nights when rooms are occupied after 6:00 p.m. unless, by agreement in writing, service is extended to a later
hour for specifically designated rooms.

          4.
     Landlord, will furnish each tenant free of charge
with two (2) keys to each door provided in the premises by Landlord.   Landlord may make a reasonable charge for
additional keys.  No tenant shall have any such keys
copied.  No tenant shall alter any lock
or install a new or additional lock or any bolt on any door of its premises.
Each tenant upon the termination of its lease shall deliver to Landlord all
keys to doors in the Building. Should Tenant install a locking system that requires
a code, such code shall be provided to Landlord in writing, and all subsequent
changes to the code will be provided in writing twenty-four (24) hours prior to
such change taking place.

          5.
     Landlord shall designate appropriate entrances
for deliveries or other movement to or from the premises of equipment,
materials, supplies, furniture, or other property, and Tenant shall not use any
other entrances for such purposes. Landlord must have approved all means or
methods used to move equipment, materials, supplies, furniture, or other
property in or out of the Building prior to any such movement. Landlord will
not be responsible for loss of or damage to any such property from any cause,
and all damage done to the Building by moving or maintaining such property
shall be repaired at the expense of Tenant. Tenant shall move all freight,
supplies, furniture, fixtures, and other personal property only at such times
as Landlord may designate. Unattended vehicles will be towed at the vehicle
owner’s expense.

          6.
     No tenant shall use any method of heating or
ventilation or air conditioning other than that supplied by Landlord.

          7.     No
animals (except for seeing eye dogs) shall be brought or kept in the Premises
or the Building.

          8.
     Landlord shall in no case be liable for damages
for any error with regard to the admission to or exclusion from the Building of
any person in the case of invasion, mob, riot, public excitement, or other
circumstances rendering such action advisable in Landlord’s opinion. Landlord
reserves the right to prevent access to the Building during the continuance of
the same by such action as Landlord may deem appropriate, including closing
doors.

          9.     No
curtains, draperies, blinds, shutters, shades, screens, or other coverings,
hangings, or decorations shall be attached to, hung, or placed in, or used in
connection with, any window of
the Building without the prior consent of Landlord.  Such items shall be installed on the office side of
Landlord’s
standard window covering and shall in no way be visible from the exterior of
the Building. Tenant shall keep window coverings closed when the effect of sunlight
(or the lack thereof) would impose unnecessary loads on the Building’s heating
or air condition systems.

          10.
     Tenant shall ensure that the doors of the
Premises are closed and locked and that all water faucets, water apparatus, and
utilities are shut off before Tenant or Tenant’s employees leave the Premises
so as to prevent waste or damage; and for any default or carelessness in this
regard, Tenant shall make good all injuries sustained by other tenants or

- 1 -

occupants of the Building or Landlord. On
multiple-tenancy floors, all tenants shall keep the doors to the Building
corridors closed at all times except for ingress and egress.

          11.     The
toilet rooms, toilets, urinals, wash bowls, and other apparatus shall not be
used for any purpose other than that for which they are constructed, no
foreign substance of any kind whatsoever shall be thrown therein, and the expense
of any breakage, stoppage, or damage resulting from the violation of this rule
shall be borne by the tenants who, or whose employees or invitee, shall have
caused it.

          12.
     Except with the prior consent of Landlord, no
tenant shall sell at retail newspapers, magazines, periodicals, theater or
travel tickets, or any other goods or merchandise to the general public in or
on the Premises, nor shall any tenant carry on or permit any employee or other
person to carry on the business of stenography, typewriting, printing, or photocopying
or any similar business in or from the Premises for the service or accommodation
of occupants of any other portion of the Building; nor shall the premises of
any tenant be used for manufacturing of any kind, or any business or activity
other than that specifically provided for in such tenant’s lease.

          13.
     No tenant shall install any radio or television
antenna, loudspeaker, or other device on the roof or exterior walls of the
Building without prior consent of Landlord. No TV or radio or recorder shall be
played in such a manner as to cause a nuisance to any other tenant.

          14.
     There shall not be used in any space, or in the
public halls of the Building, either by any tenant or others, any hand trucks
except those equipped with rubber tires and side guards or such other material
handling equipment as Landlord may approve. No other vehicles of any kind shall
be brought by any tenant into the Building or kept in or about its premises.

          15.
     Each tenant shall store all its trash and garbage
within its premises.  No material shall
be placed in the hallways or in the trash boxes or receptacles if such material
is of such nature that it may not be disposed of in the ordinary and customary
manner of removing and disposing of office building trash and garbage in the
locale without being in violation of any law or ordinance governing such
disposal.  All garbage and refuse
disposal shall be made only through entryways provided for such purposes and at
such times as Landlord shall designate.

          16.
     Canvassing, soliciting, distribution of handbills, or any other written material and
peddling in the Building are prohibited, and each tenant shall cooperate to
prevent the same.

          17.
     Except in a case of emergency, the requirements
of tenants will be attended to only upon application in writing at the office
of the Building or by facsimile transmitted to the office of the Building
manager. Employees of Landlord shall not perform any work or do anything
outside of their regular duties unless under special instructions from Landlord.

          18.
     Tenant shall not occupy the Building or permit
any portion of the Building to be occupied for the manufacture, distribution,
or direct sale of liquor, narcotics, or tobacco in any form, or as a medical
office, barber shop, manicure shop, music or dance studio, or employment
agency. Tenant shall not conduct in or about the Building any auction, public
or private, without the prior written approval Landlord.

          19.
     Tenant shall not use in the Building any
machines, other than standard office machines, such as typewriters, calculators,
desktop computers, copying machines, and similar machines, without the prior
written approval of Landlord. All office equipment and any other device of any
electrical or mechanical nature shall be placed by Tenant in the Premises in settings
approved by Landlord, so as to absorb or prevent any vibration, noise, or
annoyance.   Tenant shall not cause improper noises, vibrations, or odors
within the Building.

          20.
     Tenant shall not enter the mechanical rooms, air
conditioning rooms, electrical closets, janitorial closets, or similar areas or
go upon the roof of the Building without the prior consent of Landlord.

          21.
     Tenant shall not mark, paint, drill into, cut, string wires within, or in any way deface any part of the Building, without the
prior consent of Landlord, and as Landlord may direct.

          22.
     Tenant will not place objects on window sills or
otherwise obstruct the exterior wall window covering.

- 2 -

          23.
     Tenant will keep all doors opening to the
exterior of the Building, all fire doors, and all smoke doors closed at all
times.

          24.
     Tenant shall not obstruct, alter, or in any way
impair the efficient operation of Landlord’s heating, ventilating, electrical,
fire, safety, or lighting systems, nor shall Tenant tamper with or change the
setting of any thermostat or temperature control valves in the Building.

          25.
     If Tenant uses the Premises after regular
business hours or on non-business days Tenant shall lock any entrance doors to
the Building or to the Premises used by Tenant immediately after using such
doors.

          26.
     Tenant shall not use any portion of the Premises
for lodging.

          27.
     Landlord reserves the right to exclude or expel
from the Building any person who, in the judgment of Landlord is intoxicated or
under the influence of liquor or drugs, or who shall in any manner do any act
in violation of any of these rules and regulations.

          28.
     Tenant shall not park or attach any bicycle or
motor driven cycle on or to any part of the Premises or Building.

          29.
     Tenant shall not install any artwork that could
give an artist or any other party a right under applicable Law to prevent
removal of the same.

          30.
     This is a non-smoking facility.   Smoking is prohibited within the confines of the
building in all
public areas, which includes interior common area hallways and restrooms.

          31.
     Provided Landlord acts in good faith pursuant to
sound operating procedures, Landlord may waive any one or more of these Rules
and Regulations for the benefit of any particular tenant or tenants, but no
such waiver by Landlord shall be construed as a waiver of such Rules and
Regulations in favor of any other tenant or tenants, nor prevent Landlord from
thereafter enforcing any such Rules and Regulations against any or all of the
tenants of the Building.

          32.
     These Rules and Regulations are in addition to,
and shall not be construed to in any way modify or amend, in whole or in part,
the agreements, covenants, conditions, and provisions of any lease of premises
in the Building.

          33.
     Landlord reserves the right to modify the
foregoing and promulgate such other rules and regulations as Landlord may from
time to time decide are needed for the safety, care, or cleanliness of the
Building, for the preservation of good order therein, or as changed conditions
or particular circumstances may require.

- 3 -

EXHIBIT
H – PARKING AGREEMENT

          Tenant
shall be provided the number of non-exclusive parking spaces as set forth on
the Lease Summary, in such areas or spaces Landlord shall determine from time
to time (the “Non-exclusive Parking”). The Non-exclusive Parking shall be
available for use by Tenant on a “non-reserved” and “space available” basis
during Business Hours.

          During
the initial Term, the monthly rate per vehicle for any parking spaces granted
Tenant shall be as set out on the Lease Summary, but subject to adjustment as
of January 1 of each calendar year of the Term to the then prevailing rate generally
charged for such parking.

          The
parking rates charged by Landlord for Tenant’s parking passes shall be
exclusive of any parking tax or other charges imposed by governmental
authorities in connection with the use of such parking, which taxes and/or
charges shall be paid directly by Tenant or the parking users, or, if directly
imposed against Landlord, Tenant shall reimburse Landlord for all such taxes
and/or charges concurrent with its payment of the parking rates described
herein.

          Tenant’s
use of the parking areas serving the Building shall be subject to the
following:

          1.
     Parking shall not be permitted for Tenant or its
employees in the Project over and above the number of spaces designated on the
Lease Summary.

          2.
     All parking areas shall be under the control of
Landlord, and Tenant agrees that all Tenant Related Parties shall conform to
such reasonable written parking regulations, conditions and provisions as may
from time to time be prescribed by Landlord, provided the same do not increase
Tenant’s obligations or decrease Tenant’s rights.

          3.
     If Tenant is not permitted to utilize any parking
space in the parking areas at any time through no direct intentional act of
Landlord, such facts shall never be deemed to be a default by Landlord so as to
permit Tenant to terminate this Lease (either in whole or in part) or pursue
other remedies. Provided, however, so long as Tenant is not able to utilize any
such parking space (for reasons other than as a result of the negligence of any
Tenant Related Party), Tenant’s obligation to pay rental for any such parking
space that is not provided shall be abated for so long as Tenant does not have
the use of such parking space.  Such
abatement shall constitute full settlement of all claims that Tenant might
otherwise have against Landlord by reason of such failure or inability to
provide Tenant with such parking space. Landlord agrees to use reasonable efforts
to provide alternate parking for use by Tenant in reasonable proximity to the
Building. Landlord shall not be responsible for enforcing Tenant’s parking
rights against any third parties.

          4.
     Restricted and unrestricted parking areas shall
include only those areas designated by Landlord as such.

          5.
     Landlord will be entitled to utilize whatever
access device Landlord deems necessary (including but not limited to the
issuance of parking stickers or access cards) to assure that only those persons
contracting for the use of spaces in the parking areas are using the parking
spaces therein.  In the event any Tenant
Related Parties wrongfully park in any parking spaces, Landlord will be
entitled and is hereby authorized to impose upon Tenant a penalty of $25.00 for
each such occurrence. Tenant hereby agrees to pay all amounts becoming due
hereunder as Additional Rent upon demand therefor, and the failure to pay any
such amount will additionally be deemed a Default.

          6.
     All vehicles are to be currently licensed, in
good operating condition, parked for business purposes having to do with Tenant’s
business operated in the Premises, parked within designated parking spaces, one
(1) vehicle to each space. No vehicle shall be parked as a “billboard” vehicle
in the parking lot. Any vehicle parked improperly may be towed away.  Any Tenant Related Parties who do not
operate or park their vehicles as required shall subject the vehicle to being towed
at the expense of the owner or driver. Landlord may place a “boot” on the
vehicle to immobilize it and may levy a charge of $50.00 to remove the “boot.”  Tenant shall indemnify,
hold and save
harmless Landlord of any liability arising from the towing or booting of any
unauthorized vehicles.

          7.
     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
parking area, or relocate Tenant’s parking spaces to other parking areas within
a reasonable distance of the Premises, for purposes of permitting or facilitating
any such construction, alteration or improvements with respect to the parking
area or to accommodate or facilitate renovation, alteration, construction or
other modification of other improvements or structures located on the Property.

- 1 -

          8.
     Landlord may delegate its responsibilities
hereunder to a parking operator in which case such parking operator shall have all the rights of control attributed
hereby to the Landlord.

- 2 -Exhibit 10.24 

VIA HAND DELIVERY

May 4, 2006

Mr. Tim Eggena

Quality Systems, Inc.

3340 Peachtree Road, N. E.

Suite 2700

Atlanta, Georgia 30326

	
 

	
 

	
Re:

	
Fourth
  Amendment Between Quality Systems, Inc. (Tenant) and

	
 

	
Tower Place,
  L. P. (Landlord)

Dear Tim:

Please find enclosed
three (3) Commencement Date Memorandums for Tenant’s signature. Kindly have all
three documents signed and returned to me. Once fully executed by Landlord, one
original will be returned to you for your files. This agreement memorializes
the Commencement Date (referred to in the Fourth Amendment as the “Relocation
Date”) as April 10, 2006 and the Expiration Date as October 31, 2011.

Pursuant to Paragraph 6 of
the above referenced agreement, Base Rent is abated for the first six (6)
months of the Relocation Date. Therefore, Base Rent is not due for the period
of April 10, 2006 through October 9, 2006. Monthly
rental payments will commence October 10, 2006 in the amount of $48,224.00. The
prorated rent for October 10-31, 2006 is $34,223.48 ($48,224.00/31 days =
$1,555.61 Î 22 days = $34,223.48). Note that there is a credit on Tenant’s
account in the amount of $194.82. Please take this credit against the October
rental payment.

	  
	  
	  
	  
	  
	  
	  
	  
	  

	
      October
        2006 
	
       
	
       
	
       
	
       
	
      November
        and December 2006 
	
       
	
       
	
       

	 Base
        Rent:
	  
	 $
	 34,223.48
	  
	 Base
        Rent:
	  
	 $48,224.00
	  

	
      Storage
        Rent
	
       
	
       
	
      245.92
	
       
	
      Storage
        Rent:
	
       
	
      245.92
	
       

	 Operating
        Expenses:
	  
	  
	 0.00
	  
	 Operating
        Expenses:
	  
	 0.00
	  

	
      Account
        Credit
	
       
	
       
	
      (194.82
	
      )
	
       
	
      
 	
      
 
	
       
	
       
	
      
 	
      
 	
       
	
      Total:
	
       
	
      $48,469.92
	
       

	
      Total:
	
       
	
      $
	
      34,274.58
	
       
	
       
	
       
	
       
	  

	 	 	 	 	 	  
	  
	  
	  

NOTE THAT OPERATING EXPENSES HAVE A BASE YEAR OF 2006
EFFECTIVE APRIL 10, 2006. THEREFORE, OPERATING EXPENSES WILL NOT BE DUE FOR THE
PERIOD OF APRIL 10, 2006 THROUGH DECEMBER 31, 2006.

3348 Peachtree Road, N.E. t Suite 1000 t Atlanta, GA 30326-1008 t (404)
995-1500 t Fax (404) 261-8623

Page Two

May 4, 2006

Landlord will provide
monthly payment coupons to accompany your rental payments. Until such time,
please pay as explained on the previous page. Tenant will receive another
letter from Landlord at year-end regarding the 2007 rental payments.

Please ensure all payments for rent, billable work orders and
after-hours HVAC are sent to one of the following addresses and made payable to
Tower Place, L. P.
Payments cannot be made in the on-site property management office at Tower
Place.

	
 

	
 

	
 

	
 

	
 

	
VIA U.S.
MAIL 

	
 

	
VIA
OVERNIGHT DELIVERY 

	
 

	
Tower Place, L. P.

	
 

	
LB Overnite: Tower Place,
  L. P.

	
 

	
75 Remittance Drive

	
 

	
350 N. Orleans

	
  

	
Suite 6706 

	
  

	
Receipt & Dispatch, 8th
  Floor 

	
 

	
Chicago, Illinois
  60675-6706

	
 

	
Lockbox #6706

	
 

	
 

	
 

	
Chicago, Illinois 60654

	
 

	
 

	
 

	
 

	
 

	
 

	
WIRED
PAYMENTS 

	
 

	
 

	
 

	
Bank: 

	
The Northern Trust Company

	
 

	
 

	
 

	
 

	
50 South LaSalle Street

	
 

	
 

	
 

	
 

	
Chicago, Illinois 60675

	
 

	
 

	
 

	
 

	
ABA# 071000152

	
 

	
 

	
 

	
 

	
For Credit to: Tower Place,
  a Property of Tower Place, L. P.

	
 

	
 

	
By RREEF Management
  Company

	
 

	
 

	
 

	
 

	
Account# 2726769

	
 

	
 

Congratulations on your
expansion as a full floor tenant in the Tower Place 100 office building. In the
event you have any questions or concerns throughout the lease term, please call
me at (404) 995-1508.

Sincerely,

TOWER PLACE, L.P.,
A Georgia limited
partnership

	
 

	
 

	
By:

	
RREEF America REIT III
  Corp. O,

	
 

	
A Maryland corporation,
  general partner

	
 

	
 

	
By:

	
REGENT PARTNERS, LLC,

	
 

	
As
  Agent and Property Manager for Owner

	
 

	
 

	
By:

	

	
 

	

	
 

	
Debra Anne Cobbs, CPM®, SMA®, RPA®

	
Title:

	
Senior Property Manager

	
 

	
 

	
C:

	
Gloria Jordan

COMMENCEMENT DATE MEMORANDUM

          THIS
MEMORANDUM, made as of MAY 1, 2006, by
and between TOWER PLACE, L. P. (“Landlord”)
and QUALITY SYSTEMS, INC. (“Tenant”).

Recitals:

	
 

	
 

	
 

	
 

	
A.

	
Landlord and Tenant are
  parties to that certain FOURTH AMENDMENT
  DATED SEPTEMBER 22, 2005 (the “Lease”) for certain premises
  (the “Premises”) consisting of approximately 24,112 RENTABLE SQUARE FEET at the building commonly known
  as TOWER PLACE 100, 3340 PEACHTREE ROAD, N.
  E., SUITE 2700, ATLANTA,  GEORGIA.

	
 

	
 

	
 

	
 

	
B.

	
Tenant is in possession of
  the Premises and the Term of the Lease has commenced.

	
 

	
 

	
 

	
 

	
C.

	
Landlord and Tenant desire
  to enter into this Memorandum confirming the Commencement Date, the
  Termination Date and other matters under the Lease.

	
 

	
 

	

	
 

	
NOW, THEREFORE, Landlord
  and Tenant agree as follows:

	
 

	
 

	
 

	
 

	
1.

	
The
  actual Commencement Date is APRIL 10, 2006.

	
 

	
 

	
 

	
 

	
2.

	
The
  actual Termination Date is OCTOBER 31, 2011.

	
 

	
 

	
 

	
         3.      The
  schedule of the Annual Rent and the Monthly Installment of Rent set forth on
  the Reference Pages is deleted in its entirety, and the following is
  substituted therefore:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Period

	
 

	
Rentable

  Square

  Footage

	
 

	
 

	
 

	
 

	
 

	
Monthly

  Installment

  of Rent

	
 

	

	
 

	
 

	
Annual Rent Per

  Square Foot

	
 

	
 

	
 

	
 

	
from

	
 

	
through

	
 

	
 

	
 

	
Annual Rent 

	
 

	
 

	

	
 

	

	
 

	

	
 

	

	

	

	

	
 

	

	

	

	

	
 

	

	

	

	

	
 

	
04/10/06

	
 

	
10/09/06

	
 

	
24,112

	
 

	
 

	
$

	
0.00

	
 

	
 

	
 

	
$

	
0.00

	
 

	
 

	
 

	
$

	
0.00

	
 

	
 

	
10/10/06

	
 

	
04/09/07

	
 

	
24,112

	
 

	
 

	
 

	
24.00

	
 

	
 

	
 

	
$

	
578,688.00

	
 

	
 

	
 

	
$

	
48,224.00

	
 

	
 

	
04/10/07

	
 

	
04/09/08

	
 

	
24,112

	
 

	
 

	
$

	
24.72

	
 

	
 

	
 

	
$

	
596,048.64

	
 

	
 

	
 

	
$

	
49,670.72

	
 

	
 

	
04/10/08

	
 

	
04/09/09

	
 

	
24,112

	
 

	
 

	
$

	
25.46

	
 

	
 

	
 

	
$

	
613,930.08

	
 

	
 

	
 

	
$

	
51,160.84

	
 

	
 

	
04/10/09

	
 

	
04/09/10

	
 

	
24,112

	
 

	
 

	
$

	
26.23

	
 

	
 

	
 

	
$

	
632,348.04

	
 

	
 

	
 

	
$

	
52,695.67

	
 

	
 

	
04/10/10

	
 

	
04/09/11

	
 

	
24,112

	
 

	
 

	
$

	
27.01

	
 

	
 

	
 

	
$

	
651,318.48

	
 

	
 

	
 

	
$

	
54,276.54

	
 

	
 

	
04/10/11

	
 

	
10/31/11

	
 

	
24,112

	
 

	
 

	
$

	
27.82

	
 

	
 

	
 

	
$

	
670,857.96

	
 

	
 

	
 

	
$

	
55,904.83

	
 

	
 

Capitalized
terms not defined herein shall have the same meaning as set forth in the Lease. 

SIGNATURES ARE ON THE FOLLOWING PAGE

          IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the date and year first above written.

	
 

	
 

	
 

	
 

	
 

	
LANDLORD:

	
 

	
TENANT:

	
 

	
 

	
 

	
TOWER
  PLACE, L. P.,

	
 

	
QUALITY
  SYSTEMS, INC.

	
A Georgia
  Limited Partnership

	
 

	
A
  California Corporation

	
 

	
 

	
 

	
 

	
 

	
By:

	
   RREEF
  America REIT III Corp. O,

	
 

	
By:

	
NextGen
Healthcare 

	
 

	
   a
  Maryland corporation, general partner

	
 

	
 

	

	
 

	
 

	
 

	
Name: 

	
Tim Eggena 

	
By:

	
   RREEF
Management Company, 

	
 

	
 

	
 

	
 

	
   a Delaware corporation, Authorized Agent

	
 

	
Title:

	
VP of
Product Dev

	
 

	

	
 

	
Date:

	
5-11-06 

	
By: 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
Name:

	
   Faye
  Phillips

	
 

	
 

	
Title:

	
   Vice
  President – District Manager

	
 

	
 

	
Dated:

	
_________________________________________

	
 

	
 

FOURTH AMENDMENT OF LEASE

          AMENDMENT
made and entered as of the 22 day of September, 2005, by and
between TOWER PLACE, L.P., a Georgia limited partnership having an office at
3348 Peachtree Road, N.E., Atlanta, Georgia (“Landlord”) and QUALITY SYSTEMS,
INC., a California corporation having an office at 3340 Peachtree Road, N.E.,
Atlanta, Georgia (“Tenant”).  

RECITAL

Landlord
and Tenant entered into a lease agreement dated as of November 15, 2000, as
amended by First Amendment of Lease dated as of August 12, 2003, by Second
Amendment of Lease dated as of October 1, 2003, and by Third Amendment of Lease
dated as of June 9, 2004 (said lease, as amended, is herein referred to as the
“Lease”), covering certain premises (the “Premises”) located on the 4th floor
at Tower Place 100, at 3340 Peachtree Road, N.E., Atlanta, Georgia, which
Premises are more particularly described in the Lease. 

Landlord
and Tenant desire to modify the Lease in order to relocate the Premises to
expanded space on the 27th floor at Tower Place 100, and make
appropriate modifications and adjustments thereto.

For
and in consideration of the sum of $10.00 paid by each party to the other and
for mutual promises herein contained, the parties agree as follows:

1.

          The
Lease is hereby amended so that upon the substantial completion (the
“Relocation Date”) of the Relocation Space, as hereinafter defined, the
Premises shall become 24,112 rentable square feet of space located on the 27th
floor of the Building (the “Relocation Space”), known as Suite 2700, as more
fully described in the attached Exhibit “A-3”, which is attached hereto and
incorporated by reference herein.

2.

          Effective
on the Relocation Date, Tenant shall vacate and surrender its 4th floor space
and occupy the Relocation Space, and the Relocation Space shall be deemed, for
all purposes under this Lease, as the Premises.

3.

          Landlord
agrees to improve the Relocation Space, at Landlord’s expense, in accordance
with the pricing plan dated July 14, 2005, submitted by Loia Budde &
Associates, excluding $103,545.00 of such improvements based on the value
engineering summary dated August 11, 2005, a copy of which is attached hereto
as Exhibit “B” and incorporated herein by reference.

4.

          The
Relocation Space shall be deemed substantially complete when the agreed upon
improvements have been sufficiently made so that Tenant may occupy and use the
Relocation Space for normal business purposes and any required certificate of
occupancy has been obtained.

5.

          The
Lease is further amended so that as of the Relocation Date, the Base Rental [as
defined in Section 1.1(g) of the Lease] shall become $578,688.00 per year,
payable in equal monthly installments of $48,224.00. On each anniversary of the
Relocation Date, Base Rental shall be increased by an amount equal to three
percent (3%) above the Base Rental in effect immediately prior to each such
adjustment.

6.

          Tenant
shall not be required to pay the first six (6) monthly installments of Base
Rental following the Relocation Date. Full payment of Base Rental shall
commence as of the first day of the seventh month following the Relocation
Date.

7.

          The
Lease is further amended so that the Expiration Date [as defined in Section 1.1(m) of the Lease] shall be extended to become the date which is sixty-six (66)
months following the Relocation Date.

8.

          The
Lease is further amended as of the Relocation Date to reflect that Tenant’s
Share [as defined in Section 1.1(k) of the Lease] for determining Operating
Expense increases shall become 3.94%.

2

9.

          The
Lease is further amended as of the Relocation Date to reflect that the Base
Year [as defined in Section 1.1(j) of the Lease] shall become the calendar year
2006.

10.

          Effective
on the Relocation Date, the Maximum Number of Parking Spaces Available to Tenant
[as defined in Section 1.1(r) of the Lease] shall be increased from “36” to
“72” spaces.

11.

          The
Lease is further amended so that effective as of the Relocation Date, the
remaining obligation of Tenant to reimburse Landlord for excess improvement
costs, as more fully set forth in the Second Amendment of Lease, shall be
forgiven, and Tenant shall not be required to make any additional payments
toward same.

12.

          The
parties acknowledge that CB Richard Ellis has served as agent for Landlord in
the negotiation and procurement of this Amendment and Kern Olsen Real Estate
Services has served as agent for Tenant in the negotiation and procurement of
this Amendment. The parties agree to indemnify the other against the claims of
any third parties claimed by and through them for commission. Landlord agrees
to pay both agents a commission pursuant to a separate written agreement.

13.

          Landlord
acknowledges and agrees to continue honoring the Recognition Agreement dated
February 23, 2001, as modified on November 21, 2002, wherein NextGen Healthcare
Information Systems, Inc. is recognized as a subsidiary of Tenant and is
permitted to operate within the Premises.

14.

          The
Lease is further amended by deleting Section 4.6 (e) in its entirety, and
substituting in lieu thereof the following:

          “4.6
(e) INDEMNIFICATION. None of the Landlord Entities shall be liable and Tenant
hereby waives all claims against them for any damage to any property or any
injury to any person in or about the Premises or the Building by or from any
cause 

3

whatsoever
(including without limiting the foregoing, rain or water leakage of any
character from the roof, windows, walls, basement, pipes, plumbing works or
appliances, the Building not being in good condition or repair, gas, fire, oil,
electricity or theft), except to the extent caused by or arising from the gross
negligence or willful misconduct of Landlord or its agents, employees or
contractors. Tenant shall protect, indemnify and hold the Landlord Entities
harmless from and against any and all loss, claims, liability or costs
(including court costs and attorney’s fees) incurred by reason of (a) any
damage to any property (including but not limited to property of any Landlord
Entity) or any injury (including but not limited to death) to any person
occurring in, on or about the Premises or the Building to the extent that such
injury or damage shall be caused by or arise from any actual or alleged act,
neglect, fault, or omission by or of Tenant or any Tenant Entity to meet any
standards imposed by any duty with respect to the injury or damage; (b) the
conduct or management of any work or thing whatsoever done by the Tenant in or
about the Premises or from transactions of the Tenant concerning the Premises;
(c) Tenant’s failure to comply with any and all governmental laws, ordinances
and regulations applicable to the condition or use of the Premises or its
occupancy; or (d) any breach or default on the part of Tenant in the
performance of any covenant or agreement on the part of the Tenant to be
performed pursuant to this Lease. The provisions of this Article shall survive
the termination of this Lease with respect to any claims or liability accruing
prior to such termination. As used herein, the term ‘Landlord Entities’ shad
mean and include Landlord, Landlord’s investment manager, and the trustees,
boards of directors, officers, general partners, beneficiaries, stockholders,
employees and agents of each of them.”

15.

          The
Lease is further amended by deleting Section 8.20 in its entirety, and
substituting in lieu thereof the following:

          “8.20
LIMITATION OF LANDLORD’S LIABILITY. Redress for any
claim against Landlord under this Lease shall be limited to and enforceable
only against and to the extent of Landlord’s interest in the Building. The
obligations of Landlord under this Lease are not intended to be and shall not
be personally binding on, nor shall any resort be had  

4

to
the private properties of, any of its or its investment manager’s trustees,
directors, officers, partners, beneficiaries, members, stockholders, employees,
or agents, and in no case shall Landlord be liable to Tenant hereunder for any
lost profits, damage to business, or any form of special, indirect or consequential
damages.”

16.

          The
Lease is further amended by deleting Section 8.29 in its entirety, and
substituting in lieu thereof the following:

          “8.29
TENANT’S AUTHORITY. If Tenant
signs as a corporation, partnership, trust or other legal entity each of the
persons executing this Lease on behalf of Tenant represents and warrants that
Tenant has been and is qualified to do business in the state in which the
Building is located, that the entity has full right and authority to enter into
this Lease, and that all persons signing on behalf of the entity were
authorized to do so by appropriate actions. Tenant agrees to deliver to
Landlord, simultaneously with the delivery of this Lease, a corporate
resolution, proof of due authorization by partners, opinion of counsel or other
appropriate documentation reasonably acceptable to Landlord evidencing the due
authorization of Tenant to enter into this Lease.”

17.

          Except
as modified by this Amendment, the Lease shall remain in full force and effect
in accordance with its terms.

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

SIGNATURES CONTINUED ON FOLLOWING PAGE

5

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
LANDLORD:

	
 

	
 

	
 

	

TOWER
  PLACE, L.P.

	
 

	
 

	
 

	
a
  Georgia Limited Partnership

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
RREEF
  America REIT III Corp. O,

	
 

	
 

	
 

	
 

	
a
  Maryland corporation, general partner

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
RREEF
  Management Company,

	
 

	
 

	
 

	
 

	
a
  Delaware corporation, Authorized Agent

	
 

	
 

	
 

	
 

	
 

	
Attest:

	
 

	
 

	
By:

	

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Faye Phillips

	
Name:

	
 

	
 

	
Title:

	
Vice
  President-District Manager

	
 

	

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
9/26/05

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
TENANT:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
QUALITY
  SYSTEMS, INC.

	
 

	
 

	
 

	
a California
  corporation

	
 

	
 

	
 

	
 

	
 

	
Attest:

	

	
 

	
By:

	

	
 

	

	
 

	

	
Name:

	
Signatory

	
 

	
Name:

	
   Paul Holt

	
Title:    Signatory

	
 

	
Title:    CFO

	
 

	
 

	
 

	
 

	
 

	
(CORPORATE SEAL)

	
 

	
 

	
 

6

Exhibit “A-3” Page 1

Exhibit “A-3” Page 2

Exhibit “A-3” Page 3

Exhibit “A-3” Page 4

Exhibit “A-3” Page 5

Exhibit
“B”

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
NextGen - Value
  Engineering Summary - August 11, 2005

	
 

	
 

	
Item  

	
  

	
Cost  

	
  

	
PSF  

	
  

	
Status  

	
  

	

	
Keypad
  entry devices

	
 

	
$

	
18,000.00

	
 

	
 

	
0.75

	
 

	
 

	
Cut accepted, tenant to provide 

	
 

	
47
  Glass sidelights

	
 

	
$

	
0.00

	
 

	
 

	
0.00

	
 

	
 

	
Cut
  not accepted 

	
 

	
340
  s.f. of stone flooring

	
 

	
$

	
15,829.00

	
 

	
 

	
0.66

	
 

	
 

	
Cut accepted, deduct
  includes adding back std. carpet
  

	
 

	
Downgrade
  the carpet tile to a building standard product

	
 

	
$

	
16,000.00

	
 

	
 

	
0.66

	
 

	
 

	
Cut
  accepted 

	
 

	
Delete
  3 projections screens and add
  back cost to relocate one

	
 

	
$

	
5,100.00

	
 

	
 

	
0.21

	
 

	
 

	
Cut accepted, tenant may
  add two screens at their cost.
  

	
 

	
Lower
  the specification grade of the movable wall

	
 

	
$

	
0.00

	
 

	
 

	
0.00

	
 

	
 

	
Cut
  not accepted 

	
 

	
Delete 2 ton HVAC Liebert Unit for server room

	
 

	
$

	
18,000.00

	
 

	
 

	
0.75

	
 

	
 

	
Cut
  accepted, tenant may furnish a spot cooler at their cost. 

	
 

	
Change
  3 zone fan-coil units to 2 zone plus z-com diffusers per pricing
  drawings

	
 

	
$

	
7,883.00

	
 

	
 

	
0.33

	
 

	
 

	
Change accepted, deduct includes minor electrical. 

	
 

	
Remove
  56 downlights

	
 

	
$

	
7,000.00

	
 

	
 

	
0.29

	
 

	
 

	
Cut accepted per quantity noted. 

	
 

	
Remove
  24 accent wall washer lights

	
 

	
$

	
3,240.00

	
 

	
 

	
0.13

	
 

	
 

	
Cut accepted per quantity noted. 

	
 

	
Remove
  bathroom fixtures, Plumbing, accessories, Lights and ceramic tile.

	
 

	
$

	
0.00

	
 

	
 

	
0.00

	
 

	
 

	
Cut
  not accepted 

	
 

	
Delete
  custom reception desk

	
 

	
$

	
0.00

	
 

	
 

	
0.00

	
 

	
 

	
Cut
  not accepted 

	
 

	
Change
  wood base & crown from custom profile to standard traditional
  profile.

	
 

	
$

	
3,600.00

	
 

	
 

	
0.15

	
 

	
 

	
Change
  accepted. 

	
 

	
Delete 3 pendant lights at reception.

	
 

	
$

	
2,250.00

	
 

	
 

	
0.09

	
 

	
 

	
Cut
  accepted. 

	
 

	
Delete one coat closet

	
 

	
$

	
808.00

	
 

	
 

	
0.03

	
 

	
 

	
Cut
  accepted. 

	
 

	
Delete
  9 LF of base and wall cabinets
  in main break room

	
 

	
$

	
2,160.00

	
 

	
 

	
0.09

	
 

	
 

	
Cut
  accepted. 

	
 

	
Delete
  49 LF of 5-high adjustable
  melamine shelving.

	
 

	
$

	
3,675.00

	
 

	
 

	
0.15

	
 

	
 

	
Cut
  accepted. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total of Deletions &
  Changes

	
 

	
$

	
103,545.00

	
 

	
 

	
 

	
 

	
 

	
 

	
 

Note: Total deductions shall
include relative reduction in Construction Management
fee and General Contractor’s Fee.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]