Document:

SUBLEASE

	
 

	
                THIS SUBLEASE ("Sublease") is made as of the 12th day of September 2002, (the "Effective Date"), by and between Providian Financial Corporation, a Delaware corporation ("Sublessor") and Evolve Software, Inc., a Delaware corporation ("Sublessee").

	
 

	
RECITALS

	
 

	
                A.            Pursuant to that certain Office Lease, dated as of December 30, 1993, as amended by (i) that certain First Amendment to Office Lease dated as of May 6, 1994, (ii) that certain letter agreement dated February 13, 1996, (iii) that certain Second Amendment to Office Lease dated as of February 20, 1996, (iv) that certain Third Amendment to Office Lease dated as of May 1, 1997, (v) that certain Fourth Amendment to Office Lease dated as of December 20, 1999, (vi) that certain Fifth Amendment to Office Lease dated as of January 12, 2000 and (vi) that certain Sixth Amendment To Office Lease dated as of January 26, 2000  (collectively, the "Prime Lease"), by and between Sublessor as tenant, and Pacific Eagle Holdings Corporation (as successor in interest to 150 Spear, LLC) as landlord ("Landlord"), Tenant leased from Landlord those certain premises comprising approximately 80,506 rentable square feet (the "Premises") in that certain building located at 150 Spear Street, San Francisco, CA (the "Building"), more particularly described in the Prime Lease.  A true and complete copy of the Prime Lease is attached hereto and made a part hereof as Exhibit A.

	
 

	
                B.            Sublessor now desires to sublet to Sublessee and Sublessee desires to sublease from Sublessor a portion of the Premises containing approximately 24,991 rentable square feet located on the 10th and 11th floors of the Building, as more particularly shown on attached Exhibit B (the "Sublease Premises"), subject to and in accordance with the terms and conditions hereof.  Any capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Prime Lease.

	
 

	
AGREEMENT

	 

	
                NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto hereby agree as follows:

	
 

	
                1.             Sublease Premises and Term.

	
 

	
                                (a)           Sublessor hereby subleases to Sublessee and Sublessee hereby subleases and takes from Sublessor the Sublease Premises.

	
 

	
                                (b)           This Sublease shall commence (the "Commencement Date") on the later of the date Sublessor delivers possession of the Sublease Premises to Sublessee, but in no event prior to (i) October 1, 2002, (ii) or the date on which Landlord has consented in writing to this Sublease or (iii) Substantial Completion of the Sublessor's Work (as defined in Section 5 below).  The Expiration Date shall be June 30, 2006, unless earlier terminated pursuant to the terms of this Sublease or the Prime Lease.  The period between the Commencement Date of this Sublease and the Expiration Date shall be the term of this Sublease (the "Term").     

	
                If the Commencement Date has not occurred on or before November 15, 2002, then Sublessee shall have the right to terminate this Sublease on ten (10) days prior written notice, whereupon this Sublease shall be of no further force or effect and all sums previously paid or deposited by Sublessee shall be promptly returned by Sublessor to Sublessee, and Sublessor shall return and cooperate as necessary to cancel the Letter of Credit (as defined in Section 4 below).  

	
 

	
                                (c)           Except for the cost of services requested by Sublessee (e.g. freight elevator usage), Sublessee shall not be required to pay Rent for any days of possession before the Commencement Date during which Sublessee, with the approval of Sublessor, is in possession of the Sublease Premises for the sole purpose of either (i) installing furniture, fixtures, equipment or other personal property or (ii) conducting limited business activity by not more than fifty (50) persons in the Sublease Premises after receipt of Landlord's consent to this Sublease (collectively, the "Early Entry Uses").    Sublessor grants Sublessee the right to enter the Premises for the purposes of the Early Entry Uses for the period between the receipt of Landlord's consent to this Sublease and the Commencement Date.  Sublessee and Sublessee's vendors shall not interfere with or delay Substantial Completion of Sublessor's Work by Sublessor.  Sublessee's right of entry into the Building and Sublease Premises shall be subject to the restrictions contained in the Prime Lease (except that the provisions in the Prime Lease requiring Sublessee to pay Base Rent during such period shall not apply). If the Commencement Date has not occurred by October 1, 2002 due to a failure of Sublessor to Substantially Complete Sublessor's Work, then thereafter Early Entry Uses shall include use of the Premises for the conduct of Tenant's business within the Premises and the parties shall reasonably cooperate to facilitate the conduct of such business and the completion of Sublessor's Work.

	
 

	 

	 	 	 

	 

	

	
                2.             Incorporation of Prime Lease. 

	
 

	
Except as otherwise provided herein, and for the provisions of Sections 1, 2(a), 2(e), 2(f), 2(g), 2(h), 2(i), 2(k), 2(l), 2(n), 2(o), 2(q), 3.1, 4.1, 4.2, first two sentences of Section 5, 6, 7.4, the first sentence of Section 10.1, 10.1.1, 15, first two sentences of Section 21, 22.4, 25, first two sentences of Section 26, 29, 30, 31, 32.22, 32.23, 32.24, Exhibits A-1 - A-7, Exhibit B, Exhibit G-1 and G-2, Exhibit H, First Amendment, Second Amendment, Third Amendment, Sections 1, 1.1, 1.2, 1.3, 1.4, 1.5, 2(c), 3, 4 and 5 of the Fourth Amendment, Sections 1.1, 1.2, 1.4, 1.5, 2(b) of the Fifth Amendment and the Sixth Amendment of the Prime Lease, all of the terms and conditions of the Prime Lease are hereby incorporated by reference into this Sublease and shall be binding upon the parties hereto.  

	
 

	
Therefore, subject to the provisions of Section 8 AND Section 12 of this Sublease, it is understood that wherever in the Prime Lease the word "Tenant" appears, for the purposes of this Sublease, the word "Sublessee" shall be substituted and, wherever in the Prime Lease the word "Landlord" appears, for the purposes of this Sublease, the word "Sublessor" shall be substituted, and wherever the in the Prime Lease the word "Premises" appears, for purposes of this Sublease, the phrase "Sublease Premises" shall be substituted.  Notwithstanding anything to the contrary contained in Section 2 of the Landlord's Consent, attached as Exhibit G, Sublessor shall diligently perform in a timely manner all of its obligations as Tenant under the Prime Lease except to the extent Sublessee has agreed to perform such obligations under this Sublease.  

	
 

	
For purposes of calculating Sublessee's payment of Sublessee's pro rata share of Operating Expenses, wherever in the Prime Lease or in this Sublease the words "Base Year" appears, for the purposes of this Sublease, such reference shall be deemed to refer to the calendar year 2003, and as such, Sublessee shall have no obligation to pay for any portion of Operating Expenses until calendar year 2004.  Wherever in the Prime Lease the term "Tenant's Share" appears such term shall be deemed to refer to 9.73% ("Sublessee's Share").  Beginning in January of 2004, Sublessee shall be responsible for Sublessee's Share of any increase in Operating Expenses in excess of Operating Expenses incurred in the Base Year.      

	
 

	
Upon the written request by Sublessee, Sublessor shall cooperate with Sublessee in causing a review and audit of Landlord's books and records pursuant to Section 7.4 of the Prime Lease as applicable to the Sublease Premises.  Such review and audit shall be at Sublessee's sole cost and expense.  Sublessee shall have the right to reasonably participate in the audit process conducted by Sublessor under the Prime Lease subject to such restrictions and conditions as may be required by the Landlord including, without limitation, execution of a confidentiality agreement. To the extent such audit results in a credit or refund allocable to the Sublease Premises as a result of Sublessee's over payment of Operating Expenses, Sublessor shall promptly pay and/or credit such amount to Sublessee following Sublessor's receipt of such amount or credit from Landlord.  

	
 

	
Except as provided in Section 1(b) and Section 3(a) of this Sublease, Sublessee shall only be entitled to an abatement of rent under this Sublease only if Sublessor is similarly entitled to abate rent under the Prime Lease. 

	
 

	
                3.             Base Rent.

	
 

	
                                (a)           Commencing on the Commencement Date and continuing throughout the Term, Sublessee shall pay to Sublessor the ("Base Rent") as follows:

	
                                                

	
                                                $43,734.25 per month Full Service

	
 

	 

	 	 	 

	 

	

	
                                                Provided that Sublessee is not in default under this Sublease beyond any applicable cure period, Base Rent for the first two months of the Term shall be abated in full.

	
 

	
                                (b)           All payments of Base Rent and other amounts due hereunder from Sublessee to Sublessor shall be made to Sublessor at the address set forth in Section 23 hereof to the attention of Controller or such other address as Sublessor shall designate from time to time by written notice to Sublessee.  Any Base Rent or other amounts owing by Sublessee to Sublessor and not paid when due shall bear interest from the date due until the date paid at the annual rate of the "Prime Rate"  published in the Wall Street Journal at the time of such non payment.

	
 

	
4.             Security Deposit. Upon receipt of Landlord's consent to this Sublease, Sublessee shall deliver to Sublessor a security deposit in the amount of $175,000 (the "Security Deposit").  The Security Deposit shall be held by Sublessor without liability for interest as security for the performance of Sublessee's obligations.  The Security Deposit is not an advance payment of Rent or a measure of Sublessee's liability for damages.  Sublessor may, from time to time, without prejudice to any other remedy, use all or a portion of the Security Deposit to satisfy past due Rent or to cure any uncured default by Sublessee.  If Sublessor uses the Security Deposit pursuant to the terms hereof, Sublessee shall, within 20 days after written demand, restore the Security Deposit to its original amount. Sublessor shall return any unapplied portion of the Security Deposit to Sublessee within 45 days after the later of (1) date Sublessee surrenders possession of the Sublease Premises to Sublessor in accordance with this Lease or (2) the Expiration Date.  If Sublessor transfers its interest in the Premises, Sublessor shall assign the Security Deposit to the transferee and, following the assignment, Sublessor shall have no further liability for the return of the Security Deposit.  Sublessor shall not be required to keep the Security Deposit separate from its other accounts.  Sublessee hereby waives the provisions of Section 1950.7 of the California Civil Code, or any similar or successor laws now or hereinafter in effect.

	
 

	
                All of the Security Deposit shall be in the form of an irrevocable letter of credit (the "Letter of Credit"), which Letter of Credit shall:  (a) be in the amount of $175,000; (b) be issued on the form attached hereto as Exhibit C; (c) name Sublessor as its beneficiary; and (d) be drawn on an FDIC insured financial institution reasonably satisfactory to the Sublessor.  Sublessor hereby approves Comerica Bank as the issuing bank.   The Letter of Credit (and any renewals or replacements thereof) shall be for a term of not less than 1 year.  Sublessee agrees that it shall from time to time, as necessary, whether as a result of a draw on the Letter of Credit by Sublessor pursuant to the terms hereof or as a result of the expiration of the Letter of Credit then in effect, renew or replace the original and any subsequent Letter of Credit so that a Letter of Credit, in the amount required hereunder, is in effect until a date which is at least 45 days after the Expiration Date of the Lease.  If Sublessee fails to furnish such renewal or replacement at least 45 days prior to the stated expiration date of the Letter of Credit then held by Sublessor, Sublessor may draw upon such Letter of Credit and hold the proceeds thereof (and such proceeds need not be segregated) as a Security Deposit pursuant to the terms of this Section until such time as a new Letter of Credit satisfying the requirements of this Section has been issued, whereupon the cash Security Deposit then held by Sublessor shall be applied and credited against Base Rent next coming due.  Any renewal or replacement of the original or any subsequent Letter of Credit shall meet the requirements for the original Letter of Credit as set forth above; except that such replacement or renewal shall be issued by an FDIC insured financial institution satisfactory to the Sublessor at the time of the issuance thereof.

	
 

	
                If Sublessor draws on the Letter of Credit as permitted in this Sublease, then, upon demand of Sublessor, Sublessee shall restore the amount available under the Letter of Credit to its original amount by providing Sublessor with an amendment to the Letter of Credit evidencing that the amount available under the Letter of Credit has been restored to its original amount.  In the alternative, Sublessee may provide Sublessor with cash, to be held by Sublessor in accordance with this Section, equal to the restoration amount required under the Letter of Credit.

	
 

	
                Provided that Sublessor is not in default beyond applicable notice and cure periods on the second and third annual anniversaries of the Commencement Date, effective on each such anniversaries, the Security Deposit shall be reduced by an amount equal to $43,750 on each such date.

	
 

	 

	 	 	 

	 

	

	
                5.             Condition of Premises.  Prior to the Commencement Date, Sublessor shall perform the following work set forth in Sections 5(a) - 5(e) below (the "Sublessor's Work"):

	
 

	
                                (a)           Sublessor, at its sole cost and expense, shall (i) demise the Premises, (ii) construct the reception area, and (iii) install additional conference rooms, all in accordance with the plan attached as Exhibit D including costs of permitting, architectural and construction fees and demolition.  Sublessor represents and warrants that Sublessor's Work will be performed in a good and workman like manner and in compliance with all laws and regulations including ADA, and that Sublessor, at Sublessor's sole cost, shall be responsible for any code compliance work required to be performed in conjunction with the Sublessor's Work. 

	
 

	
                                (b)           Sublessor shall patch the damaged areas of the painted wall surface and repaint such patched areas.

	
 

	
                                (c)           Sublessor shall shampoo the carpets in the Sublease Premises and replace all missing ceiling tiles in the server room.

	
 

	
                                (d)           Sublessor shall remove the demountable walls from certain private offices to create an open area on the 11th floor as shown on attached Exhibit D.

	
 

	
(e)           Sublessor represents and warrants to Sublessee that as of the Commencement Date the separate air conditioning units in the server room shall be in good working condition.

	
 

	
(f)            Sublessor shall be deemed to have "Substantially Completed" the Sublessor's Work at such time that all of the Sublessor's Work has been completed subject only to minor items of repair and completion (the "Punch List Items") that do no materially affect Sublessee's occupancy of the Sublease Premises for the use contemplated hereunder.  Sublessor shall notify Sublessee in writing when Sublessor believes the Sublessor's Work to be Substantially Completed, at which time the parties shall schedule and conduct a walk-through inspection of the Sublease Premises to determine the same and to identify any Punch List Items.  Sublessor shall complete all Punch List Items within thirty (30) days after the Commencement Date.  Sublessor's Work shall be deemed Substantially Complete on the date which such work would have been Substantially Completed except for delays caused by the acts Sublessee and/or Sublessee's agents and contractors.  

	
 

	
(g)           If at any time during the first six (6) months of the Term, any of Sublessor's Work is found to be defective or if any of the representations of Sublessor set forth in this Section 5 are found to be untrue, and Sublessee notifies Sublessor thereof in writing, Sublessor, at Sublessor's cost, shall promptly correct such defective work or perform such other repairs as necessary to make accurate Sublessor's representations hereunder.  

	
 

	
6.             Furniture.  During the Term, Sublessee may utilize at no additional charge all of the furniture, fixtures and equipment shown on attached Exhibit E (collectively, the "FF&E").  A list of the components currently missing from the work stations located within the Sublease Premises is attached hereto as Exhibit F.  On or before the Commencement Date, Sublessor shall cause all such missing components to be completely replaced and installed. 

	
 

	
7.             Parking.  Subject to the conditions and restrictions contained in the Prime Lease, Sublessee shall have the right to use two (2) of the parking spaces allocated to Sublessor under the Prime Lease.  Any parking charges for such parking shall be paid by Sublessee directly to the payee required under the Prime Lease.  Failure to make such payments or otherwise comply with the terms, covenants and restrictions regarding the use of such parking space beyond any applicable cure period shall result in the termination of Sublessee's right to use such parking spaces.    

	
 

	
                8.             Services.  Sublessor shall not be obligated to provide any services to Sublessee.  Sublessee's sole source of such services shall be Landlord pursuant to the Prime Lease. Sublessor makes no representation about the availability and adequacy of such services.  Sublessor shall provide to Sublessee a copy of any invoice for such services with any back-up information.

	
 

	 

	 	 	 

	 

	

	
                9.             Provisions of Prime Lease. This Sublease is subject and subordinate to the Prime Lease, and Sublessee shall not do any act or thing, cause or omit to perform any obligation of Sublessee hereunder whereby an event of default will occur under the Prime Lease. Landlord may enforce all the provisions of this Sublease, including the collection of rent.  This Sublease may not be modified without Landlord's prior written consent and any modification without Landlord's consent shall be null and void.  If the Prime Lease is terminated or Landlord re-enters or repossesses the Premises, Landlord may, at its option, take over all of Sublessor's right, title and interest under this Sublease and, at landlord's option, Sublessee shall attorn to Landlord, but Landlord shall not be (x) liable for any previous act or omission of Sublessor under this Sublease, (y) subject to any existing defense or offset against Sublessor, or (z) bound by any previous modification of this Sublease made without Landlord's prior written consent or by any prepayment of more than one month's rent.  To the extent incorporated herein pursuant to Section 2 of this Sublease and except as contrary to the express terms of this Sublease, Sublessee covenants that, with respect to the Sublease Premises, Sublessee will: (a) at its own cost and expense, promptly perform and observe all of the duties and obligations of the tenant under the Prime Lease that accrue during the Term and are applicable to the Sublease Premises as fully as if Sublessee were said tenant; (b) comply with all restrictions and requirements of the Prime Lease applicable to the tenant thereunder; and (c) except for Sublessor's obligations regarding Sublessor's Work under this Sublease, to the extent required under the Prime Lease, as incorporated herein, at Sublessee's own cost and expense be responsible for (i) code compliance costs applicable to the Sublease Premises after the Commencement Date, and (ii) for any other costs incurred due to any other work done by or on behalf of Sublessee whether before or after the Commencement Date (except for Sublessor's Work).  

	
 

	
                10.           Sublessee's Use of the Sublease Premises.  Sublessee shall use and occupy the Sublease Premises only for general office purposes and for no other use or purpose whatsoever and Sublessee shall not use or permit the Sublease Premises to be used in any way which would violate the terms of the Prime Lease; provided, however, Sublessor acknowledges (subject to Landlord's consent referenced below), and by consenting to this Sublease in writing, Landlord shall be deemed to have acknowledged, that Sublessee's proposed use of the Sublease Premises for software development, sales and marketing and related uses is permitted under the Prime Lease as a "general office use".

	
 

	
                11.           Sublessee's Insurance.  Sublessee, at Sublessee's expense, agrees to maintain in force during the Term of this Sublease, with respect to the Sublease Premises, such insurance policies required to be maintained by Tenant pursuant to the Prime Lease.  All of such insurance policies shall list the Landlord, Sublessor and such other parties required by such provisions of the Prime Lease, if any, as additional insureds.

	
 

	
                12.           No Warranties.  Notwithstanding anything to the contrary in this Sublease, Sublessor does not make any representations or warranties made by Landlord under the Prime Lease and does not undertake and shall not be required to perform or observe any of the terms, covenants and conditions on the part of Landlord to be performed or observed, but Sublessor agrees to use reasonable efforts to cause Landlord to perform or observe such terms, covenants and conditions; provided, however, that Sublessee agrees to pay all costs and expenses of Sublessor incurred in doing so.    Sublessee is fully familiar with the physical condition of the Sublease Premises and, subject to the express provisions of Section 5 above, as between Sublessor and Sublessee, accepts possession of the Sublease Premises AS IS AND WITH ALL FAULTS, and Sublessor shall not be liable for any latent or patent defects therein or for any action or inaction by Landlord with respect to the condition of the Sublease Premises or the Building.  Sublessor represents and warrants to Sublessee that Sublessor has no notice of any default by either Landlord or Sublessor under the Prime Lease.

	
 

	
                13.           Alterations.  Sublessee shall not make any structural alterations, improvements, additions, installations or decorations in or to the Sublease Premises, except as expressly permitted by the Prime Lease.  Sublessee shall remove any alterations, improvements, additions, installations or decorations which Sublessee makes, to the extent such alterations, improvements, additions, installations or decorations are required to be removed upon the expiration of the Term hereof or of the Prime Lease and restore the area to the condition in which it was delivered to Sublessee, ordinary wear and tear excepted.

	
 

	 

	 	 	 

	 

	

	
                14.           Fire and Casualty.  In the event that the Sublease Premises shall be destroyed or damaged by fire or other casualty, the following shall be applicable:

	
 

	
                                (a)           Landlord, and not Sublessor, shall be responsible for reconstruction if and to the extent required by the Prime Lease; and

	
 

	
                                (b)           If the Prime Lease is terminated by Landlord or Sublessor as a result of such casualty, this Sublease shall also be terminated as of the same date.

	
 

	
                15.           Time for Required Action.  Whenever any provision of the Prime Lease, which has been incorporated herein by reference, requires the tenant thereunder to take any action within a certain period of time after notice from the Landlord thereunder, then, provided notice thereof is sent from Sublessor to Sublessee within two (2) business days of the receipt of notice from the Landlord, Sublessee shall cure any non-monetary default within at least five (5) days before the expiration of the period of time set forth in said notice allowed for cure under the Prime Lease.

	
 

	
                16.           Holding Over.  In addition to the provisions of the Prime Lease regarding holding over, if Sublessee holds over without the consent of Sublessor, then the holding over shall be a default hereunder and Sublessee shall indemnify Sublessor against all costs and claims for damages, including, without limitation, any claims for damages by any other tenant to whom Sublessor or Landlord may have leased all or any part of the Sublease Premises.  Notwithstanding anything to the contrary in this Sublease, any holding over by Sublessee shall be at the same rate as would be payable by Sublessor as tenant under the Prime Lease for the Sublease Premises.  

	
 

	
                17.           Assignment/Sublease. 

	
 

	
                                                (a)           Sublessee shall have the right at all times to freely assign or sublease  (collectively "Transfer") all or any portion of the Premises (and all rights thereunder, including without limitation options) to (i) any entity which controls, is controlled by or is under common control with Sublessee, or (ii) any successor entity, whether by merger, consolidation or otherwise; or (iii) any entity that purchases all or substantially all of the Sublessee's assets (with items (i), (ii) and (iii) being referred to herein collectively as "Affiliates") subject to Prime Landlord's consent as required under the Prime Lease.  No such Transfer to any Affiliate shall require Sublessor's approval or consent, or compliance with any other Sublease requirements for Transfers generally, except as provided in the Prime Lease.  Sublessee shall have the right to keep all of the profit, if any, resulting from a Transfer to an Affiliate, provided that the assignee or sublessee has a net worth at least equal to that of Sublessee as of the Commencement Date.  Sublessee shall provide to Sublessor prior notice of any such proposed Transfer together with documentation evidencing such Transfer.  

	
 

	
                                (b)           Subject to the consent requirements and other restrictions contained in the Prime Lease, Sublessee shall also have the right at all times to Transfer all or any portion of the Premises or the sublease to any unrelated entities, subject to Sublessor's prior written consent, which shall not be unreasonably withheld, conditioned or delayed.  There shall be no recapture by Sublessor of the Premises in the event of a Transfer.  Notwithstanding any such sublease or assignment, Sublessee shall remain fully liable on this Sublease and shall not be released from performing any of the terms, covenants and conditions hereof.  Any attempt by Sublessee to assign or sublease all or any part of the Sublease Premises without obtaining such prior written consent, if required, or without Sublessee remaining fully liable on this Sublease shall be null and void and shall confer no rights on any third person.

	
 

	
                                (c)           The Landlord's Consent to this Sublease, attached hereto as Exhibit G (the "Consent") contains certain restrictions on the ability of Sublessee to enter into Transfers or to enter into transactions which result in a direct or indirect transfer of control of Sublessee (collectively "Restricted Transactions"). If Sublessee desires to enter into a Restricted Transaction the following shall apply:

	
 

	 

	 	 	 

	 

	

	
(i)            Sublessee shall request the consent of Sublessor and Landlord by delivering to Sublessor the information required in clauses (a) - (d) of the third sentence of Section 15.3 of the Prime Lease.

	
 

	
(ii)           Sublessee and the Restricted Transaction shall comply with the requirements of Sections 15.6 and 15.7 of the Prime Lease (as incorporated herein) and Sections 10 (a), and 10 (b)(i),(iii)and (iv) of the Consent. 

	
 

	
(iii)          Upon receipt of such information, if Sublessor grants consent to the Restricted Transaction pursuant to this Sublease, Sublessor shall seek Landlord's consent to the proposed Restricted Transaction and the parties shall cooperate in good faith to obtain the Landlord's consent to the Restricted Transaction.

	
 

	
(iv)          Except for a Restricted Transaction which requires Landlord's consent because of a change in control of Sublessee, Sublessor shall have the right to elect, by delivery of written notice to Sublessee within five (5) business days following receipt of the information referenced above, to enter into the proposed Restricted Transaction directly with the proposed transferee and require that, in such event, Sublessee shall guarantee the payment of the financial obligations of Sublessee which would otherwise be payable by Sublessee over the remainder of the Sublease Term under the Sublease as it is in effect as of the effective date of the Restricted Transaction.

	
 

	
(v) The primary purpose of the proposed Restricted Transaction is not to avoid the performance of Sublessee's obligations under this Sublease.

	
 

	
(vi)If Landlord denies consent to a proposed Restricted Transaction which complies with the foregoing and the proposed transferee in the Restricted Transaction meets the Minimum Net Worth Requirement (as defined below) then Sublessee shall have the right to terminate this Sublease with respect to the portion of the Sublease Premises to which the Restricted Transaction applies, provided that the following conditions are satisfied.

	
 

	
                (A)          Sublessee delivers at least thirty (30) days prior written notice to Sublessor of Sublessee's election to terminate.

	
 

	
(B)           On or prior to the effective date of the termination, Sublessee shall pay to Sublessor an amount equal to six (6) months Base Rent applicable to the proposed portion of the Sublease Premises to which the Restricted Transaction applies together with an amount equal to the unamortized commissions and improvement costs incurred by Sublessor in connection with this Sublease.

	
 

	
(C)           The effective date of termination does not occur during the last nine months of the Sublease Term.

	
 

	
As used herein, the term "Minimum Net Worth Requirement" shall mean that, as of the proposed effective date of the Restricted Transaction, the net worth of the proposed transferee who will be liable for performance under the proposed Restricted Transaction equals or exceeds $8,500,000 after deducting from such net worth an amount equal to the average monthly net loss (if any) shown on such transferee's income statement over the immediately prior twelve months multiplied times the number of months remaining in the Sublease Term.  Such calculations and accounting shall be done in accordance with generally accepted accounting principles, consistently applied.         

	
 

	
                18.           Conflict or Inconsistency.  In case of any conflict or inconsistency between the provisions of the Prime Lease and those of this Sublease, the provisions hereof shall, as between the Sublessor and Sublessee, control.

	
 

	
                19.           Non-Waiver.  Failure of Sublessor to declare any default or delay in taking any action in connection herewith shall not waive such default.  No receipt of moneys by Sublessor from Sublessee after the termination in any way of the Term of this Sublease or of Sublessee's right of possession hereunder or after the giving on any notice shall reinstate, continue or extend the Term of this Sublease or affect any notice given to Sublessee or any suit commenced or judgment entered prior to receipt of such monies.

	
 

	
                20.           Cumulative Rights and Remedies.  All rights and remedies of Sublessor under this Sublease shall be cumulative and none shall exclude any other rights or remedies allowed by law.

	
 

	 

	 	 	 

	 

	

	
                21.           Brokerage.  The parties hereto represent and warrant to one another that they have not dealt with any real estate broker or agent in connection with this Sublease except for CM Realty representing both Sublessor and Sublessee.  Sublessor shall pay a commission to CM Realty, Inc. per a separate agreement.  Each party agrees to indemnify and hold the other harmless from and against any claims by any other real estate broker or agent claiming a commission by virtue of having dealt with such party with regard to this Sublease.

	
 

	
                22.           Attorneys' Fees.  In connection with any litigation arising out of this Sublease, the prevailing party shall be entitled to recover all costs incurred, including reasonable attorneys' fees, which include, without limitation, those reasonable attorneys' fees incurred by such prevailing party for the services of its attorneys through all trial and appellate levels and post-judgment proceedings.

	
 

	
                23.           Notices.  All notices demands, approvals, consents, requests for approval or consents or other writings required in this Sublease or in the Prime Lease to be given, made or sent by either party hereto to the other ("Notice") shall be in writing and shall be deemed to have been fully given, made or sent when made by personal service, by private nationally recognized courier with acknowledged receipt, or by United States mail, certified or registered, and postage prepaid and properly addressed as follows:

	
                

	
To Sublessor:       Providian Financial Corporation

	
                                                                                201 Mission Street

	
                                                                                San Francisco, CA 94105

	
                                                                                Attention:  Chief Financial Officer

	
 

	
                                with a copy to:

	
 

	
                                                                                Providian Financial Corporation

	
                                                                                201 Mission Street

	
                                                                                San Francisco, CA 94105

	
                                                                                Attention:  General Counsel

	
 

	
                                To Sublessee:       

	
 

	
150 Spear Street 

	
                                                                                San Francisco, CA 94105 

	
11th Floor 

	
                                                                                Attention: Chief Financial Officer

	
 

	
                                with a copy to:

	
 

	
                                                                                150 Spear Street

	
                                                                                San Francisco, CA 94105

	
                                                                                11th Floor 

	
                                                                                Attention: General Counsel

	
                                                                                

	
                                                                

	
The address to which any Notice should be given, made or sent to either party may be changed by written notice given by such party as above provided.

	
 

	
                24.           Entire Agreement.  This Sublease, the Prime Lease, as incorporated herein, and any consent of Landlord to this Sublease set forth all of the covenants, promises, agreements, conditions and understandings between Sublessor and Sublessee concerning the Sublease Premises and there are no covenants, promises, agreements, conditions or understandings, either oral or written, between them other than as are herein set forth.  Except as herein otherwise provided, no subsequent alteration, amendment, change or addition to this Sublease shall be binding upon Sublessor or Sublessee unless reduced to writing and signed by each of them

	
 

	 

	 	 	 

	 

	

	
                25.           Representation of Sublessee's Authority.  Sublessee hereby represents and warrants to Sublessor that the execution, delivery and performance of this Sublease by Sublessee have been duly authorized by all necessary corporate action on the part of Sublessee and that the individual or individuals signing this Sublease on behalf of Sublessee are duly authorized with full power and authority to execute this Sublease on behalf of Sublessee and to bind Sublessee to the terms and conditions hereof.

	
 

	
                26.           Landlord's Consent.            This Sublease is subject to the consent of Landlord.  Accordingly, it shall be a condition precedent of this Sublease that Sublessor has obtained the consent of Landlord hereto.  If Sublessor has not obtained Landlord's consent within  ten (10) business days after the Effective Date, then either party may, at any time thereafter until such consent is obtained, terminate this Sublease by delivery of written notice to the other in the manner provided herein.  

	
 

	
                27.           Waiver of Subrogation.  Landlord, by its consent hereto, and the parties hereto hereby agree that the waiver of subrogation provisions contained in the Prime Lease shall be deemed a three party agreement, binding among and inuring to the benefit of Sublessee, Sublessor and Landlord.

	
 

	
                28.           Assignment of Rights.  To the extent they can be partially assigned,  Sublessor hereby assigns to Sublessee all warranties given and indemnities made by Landlord to Sublessor under the Prime Lease to the extent applicable to the Sublease Premises that would reduce Sublessee's obligations under this Sublease and shall cooperate with Sublessee to enforce all such warranties and indemnities.

	
 

	
                29.           Force Majeure.     Whenever a period of time is prescribed for the taking of an action by Sublessor or Sublessee, the period of time for the performance of such action shall be extended by the number of days that the performance is actually delayed due to strikes, acts of God, shortages of labor or materials, war, civil disturbances and other causes beyond the reasonable control of the performing party ("Force Majeure").  However, events of Force Majeure shall not extend any period of time for the payment of Rent or other sums payable by either party or any period of time for the written exercise of an option or right by either party.  Notwithstanding the foregoing, events of Force Majeure shall not extend the time period required for performance under the Prime Lease, as and to the extent incorporated herein, unless specifically authorized under the Prime Lease.

	
 

	
                30.           Counterparts.  This Sublease may be executed in one (1) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  This Sublease or any counterpart may be executed and delivered by facsimile transaction with an executed hard copy to follow.

	
 

	
                31.           Signage.  Sublessee shall be included in the Building directory and shall have the right to install signage outside the entrance to the Sublease Premises on the 11th floor, subject to Landlord's reasonable approval of the size, design and location of all such signage.  

	
 

	
                32.           Fire Suppression.  Notwithstanding anything to the contrary in this Sublease, Sublessor, at Sublessor's sole cost, shall maintain in good and operable condition the existing separate fire suppression system providing service to the server room in the Sublease Premises and also Sublessor's telcom room; provided, however, Sublessee shall have the right, at Sublessee's sole cost, to segregate the fire suppression system for the server room in the Sublease Premises from the fire suppression system for the telcom room in the other portion of the Premises. If Sublessee segregates the fire suppression system for the server room in the Sublease Premises, Sublessee shall be responsible for maintaining such segregated system.  

	
 

	
                33.           Security.  At Sublessee's request, Sublessor shall issue to Sublessee, at no additional cost to Sublessee (other than reimbursement for Sublessor's actual out-of-pocket costs), separate card keys to enable Sublessee's use of the existing security system for the Sublease Premises, which system is part of the security system for the entire Premises; provided, however, Sublessee shall have the right to install a separate security system for the Sublease Premises and incorporate, at no additional cost to Sublessee except as provided below , the existing card key readers currently serving the Sublease Premises into such separate system.  The actual cost of separating such card readers from Sublessor's existing system and assuring that Sublessor's existing security system is not adversely affected by such segregation shall be at Sublessee's sole cost.  Sublessor makes no representation regarding the adaptability of such card readers to Sublessee's new system.  The cost for issuing and replacing card keys is $15 per card key.

	
 

	 

	 	 	 

	 

	

	
                34.  Termination Option.     Sublessee shall have the right to terminate this Sublease if Sublessee has not entered into a termination agreement regarding Sublessee's Emeryville facility, on or before September 24, 2002.  Such termination option shall be exercised by delivery of written notice to Sublessor on or before 5:00 p.m. Pacific Time on September 24, 2002.   

	
 

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

	
 

	
SUBLESSOR:                                                                                        SUBLESSEE:

	
 

	
Providian Financial Corporation,                       Evolve Software, Inc., 

	
a Delaware corporation                                                       a Delaware corporation

	
 

	
By:          _________________________                     By:_____________________ 

	
 

	
 

	
Its:    __________________________                          Its:____________________

	
 

	 

	 	 	 

	 

	

	
EXHIBIT A

	
 

	
PRIME LEASE

	 

	 

	 	 	 

	 

	

	
EXHIBIT B

	
 

	
SUBLEASE PREMISES

	
 

	 

	 	 	 

	 

	

	
EXHIBIT C

	
 

	
LETTER OF CREDIT FORM

	
 

	 

	 	 	 

	 

	

	
EXHIBIT D

	
 

	
LESSOR'S WORK

	 

	 

	 

	 	 	 

	 

	

	
EXHIBIT E

	
 

	
FF&E

	
 

	 

	 	 	 

	 

	

	
EXHIBIT F

	
 

	
ADDITIONAL FURNITURECONSENT TO SUBLEASE

	
 

	
            THIS AGREEMENT is entered into as of the 23rd day of September, 2002, by and among PACIFIC SPEAR CORPORATION, a Delaware corporation ("Landlord") and PROVIDIAN FINANCIAL, INC., a Delaware corporation ("Tenant"), and EVOLVE SOFTWARE, INC., a Delaware corporation ("Subtenant") with reference to the following facts:

	
 

	
            A.        On December 30, 1993, Tenant (then known as First Deposit Corporation) and Shuwa Investments Corporation ("Shuwa"), one of Landlord's predecessors in interest, as landlord, entered into that certain Office Lease, which has been subsequently amended by (i) that certain First Amendment to Office Lease, dated May 6, 1994, between Shuwa and Tenant (then known as First Deposit Corporation), (ii) that certain Office Lease Occupancy Agreement dated September 14, 1995, between Shuwa and Tenant (then known as Providian Bancorp, Inc.), (iii) that certain tenet agreement dated February 13, 1996, between North American Building Management Corporation, formerly known as Shuwa Management Corporation, and Tenant (known as Providian Bancorp Inc.), (iv) that certain Second Amendment to Office Lease, dated February 20, 1996, between Shuwa and Tenant (then known as Providian Bancorp, Inc.), (v) that certain Third Amendment to Office Lease dated May __, 1997, between Shuwa and Tenant (then known as Providian Bancorp Inc.), (vi) that certain Fourth Amendment to Office Lease dated December 20, 1999, between 150 Spear, LLC, one of Landlord's predecessors in interest, as landlord, and Tenant, (vii) that certain Fifth Amendment to Office Lease, dated January 12, 2000 between 150 Spear, LLC  and Tenant, and (viii) that certain Sixth Amendment to Office Lease, dated February 1, 2000, between 150 Spear, LLC and Tenant (collectively, the "Master Lease"), pursuant to which Tenant leased approximately 80,506 rentable square feet on the 2nd, 7th, 8th, 9th, 10th and 11th floors of 150 Spear Street, San Francisco, California (the "Building"). On July 24, 1998, 150 Spear, LLC purchased the Building from Shuwa and acquired Shuwa's interest in the Master Lease. On January 5, 2001, Pacific Spear Corporation purchased the Building from 150 Spear, LLC and acquired 150 Spear, LLC's interest in the Master Lease.

	
 

	
            B.         Tenant and Subtenant now desire to enter into a sublease (the "Sublease") for approximately 25,000 rentable square feet located on the 10th and 11th floors (the "Sublet Premises") of the Building, a copy of which Sublease is attached hereto as Exhibit A and incorporated herein, and the Sublet Premises are more particularly described in the Sublease.

	
 

	
            C.        Pursuant to the terms of the Master Lease, as the same may have been amended to the date hereof, Tenant has requested Landlord's consent to the Sublease.

	
 

	
            NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Landlord hereby consents to the Sublease subject and obligated to the following express terms and conditions to each of which Tenant and Subtenant expressly agree:

	 

	 	 	 

	 

	

	
 

	
            1.         The Sublease is subject, obligated and subordinate to the Master Lease and to all its terms, covenants, conditions, provisions and agreements and to all matters to which the Master Lease is subject and subordinate.

	
 

	
            2.         Subtenant shall perform faithfully and be bound by all of the terms, covenants, conditions, provisions and agreements of the Master Lease, for the period covered by the Sublease, but only to the extent applicable to the Sublet Premises.

	
 

	
            3.         Neither the Sublease nor this Consent thereto shall:

	
 

	
                        (a)  release or discharge Tenant from any liability whether past, present or future, under the Master Lease;

	
 

	
                        (b) operate as an approval by Landlord to or for any specific terms, covenants, conditions, provisions, or agreements of the Sublease or as a representation or warranty by Landlord, and Landlord shall not be bound or estopped thereby;

	
 

	
                        (c) be construed to modify, waive or affect any of the terms, covenants, conditions, provisions or agreements of the Master Lease, or to waive any present or future breach thereof or any of Landlord's rights, or to enlarge or increase Landlord's obligations;

	
 

	
                        (d)  be construed as a consent by Landlord to any further subletting either by Tenant or by Subtenant or to any assignment by Tenant of the Master Lease or assignment by Subtenant of the Sublease, whether or not the Sublease purports to permit the same and, without limiting the generality of the foregoing, both Tenant and Subtenant agree that Subtenant has no right whatsoever to assign, mortgage or encumber the Sublease nor to sublet any portion of the Sublet Premises or permit any portion of the Sublet Premises to be used or occupied by any other party; further, in connection herewith, both Tenant and Subtenant agree that an assignment by operation of law or a direct or indirect transfer of control of Subtenant (including but not limited to a direct or indirect transfer of the control of Subtenant (including but not limited to a direct or indirect transfer of the controlling interest of the stock of Subtenant, if Subtenant is a corporation) shall be deemed to be an assignment hereunder which requires the consent of Landlord, which may be granted or withheld at Landlord's reasonable discretion; or

	
 

	
                        (e)  be deemed to create a privity of contract between Landlord and Subtenant, to make Subtenant a third party beneficiary of the provisions of the Master Lease, or to create or permit any direct right of action by Subtenant against Landlord breach of the covenant of quiete enjoyment or any other covenant of Landlord under the Master Lease.

	
 

	
            4.         Any breach or violation of any provision of the Master Lease by Subtenant shall be deemed to be and shall constitute a default by Tenant in fulfilling such provision. Tenant shall not be released from any liability under the Master Lease because of Landlord's failure to give notice of default under or in respect of any of the terms, covenants, conditions, provisions or agreements of the Master Lease.

	 

	 	2	 

	 

	

	
 

	
            5.         Tenant hereby assigns and transfers to Landlord the Tenant's interest in the Sublease, all rentals and income arising therefrom, and all security deposits (whether in the form of cash or a letter of credit) provided by Subtenant pursuant thereto, as security for the timely performance by Tenant of its obligations under the Master Lease, subject to the terms of this Agreement.  Such assignment is absolute and unconditional.  Landlord, by consenting to the Sublease agrees this until the occurrence of a breach or default in the performance of Tenant's obligations under the Master Lease, Tenant may receive, collect and enjoy the rents paid under the Sublease.  In the event the Tenant shall default in the performance of its obligations to Landlord under the Master Lease (whether or not Landlord terminates the Master Lease and elects to cause Subtenant to ??? to Landlord as provided in Section 8 below), Landlord may, at its option, by giving written notice to Tenant and Subtenant stating that a breach or default exists in the performance of Tenant's obligations under the Master Lease, require Subtenant to pay to Landlord the rents and any other sums due and to become due under the Sublease.  Tenant hereby irrevocably authorizes and directs Subtenant, upon receipt of any written notice from Landlord stating that a breach or default exists in the performance of Tenant's obligations under the Master Lease, to pay to Landlord the rents and any other sums due and to become due under the Sublease.  Tenant agrees the Subtenant shall have the right to unconditionally rely upon any such written notice from Landlord, and that Subtenant shall pay any such rents and any other sums due and to become due under the Sublease to Landlord without any obligation or right to inquire as to whether such breach or default exists under the Master Lease and notwithstanding any notice from or claim from Tenant to the contrary.  Tenant shall not have any right or claim against Subtenant for any such rents or any other sums so paid by Subtenant to Landlord pursuant to any such notice. Landlord shall credit Tenant with any rents or sums received by Landlord from Subtenant pursuant to any such notice but the acceptance of any payment of rents or other sums from the Subtenant as the result of any such default shall in no manner whatsoever be deemed a waiver by Landlord of any provision of the Master Lease, or release Tenant from any liability under the terms, covenants, conditions, provisions or agreements under the Master Lease. No payment of rents or any other sums by the Subtenant directly to the Landlord, regardless of the circumstances or reasons therefor, will be deemed an attornment by the Subtenant to Landlord or a recognition of Subtenant by Landlord in the absence of a specific written agreement or notice pursuant to Section 8 below signed by Landlord to such an effect.  In addition, Landlord, by consenting to the Sublease, agrees that until the occurrence of a breach or default in the performance of Tenant's obligations under the Master Lease, and unless and until Landlord terminates the Master Lease and elects to cause Subtenant to attorn to Landlord as provided in Section 8 below, Tenant withhold any security deposit provided by Subtenant under the Sublease.

	
 

	
            6.         Both Tenant and Subtenant shall be and continue to be liable for the payment of (a) all bills rendered by Landlord for charges incurred by Subtenant for services and materials supplied to the Sublet Premises beyond that which is required by the terms of the Master Lease and; (b) any additional costs incurred by Landlord for maintenance and repair of the Sublet Premises as the result of Subtenant (rather than Tenant) occupying the Sublet Premises (including but not limited to any excess cost to Landlord of services furnished to or for the Sublet Premises resulting from the extent to which Subtenant uses the Sublet Premises for purposes other than as set forth in the Master Lease).

	
 

	
            7.         Notwithstanding anything to the contrary contained in the Sublease, all requests for any service to be supplied by Landlord to the Sublet Premises, all requests to alter the Sublet Premises, all requests to further sublet the Sublet Premises or assign the Sublease, and all other requests for Landlord's consent or approval must be made by Tenant on behalf of Subtenant.

	 

	 	3 	 

	 

	

	
 

	
            8.         The term of the Sublease shall expire and come to an end on its stated expiration date or any premature termination date thereof or, except as provided in the immediately following sentence, concurrently with any premature or stated termination of the Master Lease (whether by consent or other right now or hereafter agreed to by Landlord or Tenant, by operation of law, or at Landlord's option in the event of default by Tenant) and Subtenant shall vacate the Sublet Premises on or before such date.  Notwithstanding the foregoing, in the event that the term of the Master Lease should terminate prior to the term of the Sublease, it is agreed that, at the option of Landlord, which option shall be exercisable by written notice to Subtenant prior to or within thirty (30) days after the effective date of such termination, Subtenant shall be bound to Landlord under the terms, covenants, and conditions of the Sublease as provided in subparagraph (x), below, for the remaining balance of the stated terms of the Sublease (as opposed to early termination) thereof, with the same force and effect as if the Sublease was a direct lease between Landlord, as landlord, and Subtenant, as tenant, and Subtenant does hereby agree to attorn to Landlord as its landlord, such attornment to be effective and self-operative without the execution of any further instruments on the part of any of the parties  to this Agreement, immediately upon Landlord's exercise of the aforementioned option.

	
 

	
                        (x) In the event Landlord exercises its option of attornment as provided in the paragraph immediately above, (A) Tenant shall, immediately upon demand, deliver to Landlord the amount of any cash security deposit provided to Tenant by Subtenant (less any portion thereof that has been properly applied by Tenant to any obligation of Subtenant under the terms of the Sublease, which obligation was due and payable prior to termination of the Master Lease by Landlord) or the original of any letter of credit provided to Tenant by Subtenant as a security deposit,  together with any documents necessary to transfer the beneficial interest in any such letter of credit to Landlord or Landlord's lender (if so requested by Landlord), duly executed by Tenant, and Tenant and Subtenant shall be jointly and severally liable to Landlord for the payment of any fees required to be paid to the issuing bank to transfer any such letter of credit, and Tenant and Subtenant shall take any actions necessary to allow such letter of credit to be transferred to Landlord or Landlord's lender (if so requested by Landlord), and (B) Subtenant shall observe and perform: (i) each of the terms, covenants and conditions of the Sublease that Landlord designates be observed and performed, and (ii) such other terms, covenants and conditions to which the parties may agree. It is further agreed that Landlord shall not be:

	
 

	
                        (a)  liable for any act or omission of any prior sub-landlord (including Tenant) under the Sublease; or

	
 

	
                        (b)  obligated to cure any defaults of any prior sub-landlord (including Tenant) which occurred prior to the term that Landlord succeeded to the interest of Tenant under the Sublease; or

	
 

	
                        (c)  subject to any offsets or defenses which Subtenant may be entitled to assert against any prior sub-landlord (including Tenant); or 

	 

	 	4 	 

	 

	

	 

	
                        (d)   bound by any payment of rent or additional rent by Subtenant to any sub-landlord (including Tenant) for more than one month in advance; or

	
 

	
                        (e)  bound by any amendment or modification of the Sublease made without the written consent of Landlord; or

	
 

	
                        (f)  liable or responsible for or with respect to retention, application and/or return to subtenant of any security deposit paid to or letter of credit delivered to any prior sub-landlord (including Tenant), whether or not still held by such prior sub-landlord, unless and until, and only to the extent, Landlord has actually received for its own account as Landlord such security deposit or such letter of credit; or

	
 

	
                        (g)  liable for any representations or warranties made by Tenant under the  Sublease; or

	
 

	
                        (h)  liable for any indemnification obligations of Tenant under the Sublease; or

	
 

	
                        (i)  liable for any obligations of Tenant to construct or provide an allowance for tenant improvements under the Sublease.

	
 

	
            9.         In addition to Tenant's obligations under the Master Lease to maintain insurance, Subtenant shall add and maintain Landlord as an additional insured under Subtenant's insurance policies.  Subtenant shall cause each insurance policy carried by Subtenant and insuring the Sublease Premises and the fixtures and property therein to provide that the insurance company waives all rights of subrogation against Landlord in connection with any loss.

	
 

	
            10.       Landlord's consent, as set forth under Section 3.(d) above, shall be subject to the following:

	
 

	
                        (a)   Subtenant shall pay to Landlord by certified bank check a fee of Ten Thousand Dollars and 00/100 ($10,000.00) due upon presentation of Landlord's consent;

	
 

	
                        (b)  Tenant and Subtenant agree that the withholding of Landlord's consent shall be deemed reasonable if all of the following conditions are not satisfied;

	
 

	
                               (i)         The proposed assignee or subtenant shall use the Premises only for the permitted use, and the business of the proposed assignee or subtenant (and the nature of said person's business invitees and licenses) is consistent with the other uses and the standards of the Building, in Landlord's reasonable judgment.

	
 

	
                               (ii)        The proposed assignee or subtenant is reputable and has a credit rating reasonably acceptable to Landlord, and otherwise has sufficient financial capabilities to perform all of its obligations under this Lease or the proposed sublease, in Landlord's reasonable judgment; and in all other cases, the proposed subtenant is reputable and has a credit rating reasonably acceptable to Landlord.

	 

	 	5 	 

	 

	

	
 

	
                               (iii)       Neither the proposed assignee or subtenant is a person to whom Landlord has during the three (3) month period prior to the delivery of Tenant's written notice, actively negotiated (as documented in writing) for space in the Building that would generally fit such parties leasing requirements.

	
 

	
                               (iv)         Subtenant is not in default and has not committed acts or omissions which with the running of time or the giving of notice or both would constitute a default under the sublease.

	
 

	
            The conditions described above are not exclusive and shall not limit or prevent Landlord from considering additional factors in determining if it should reasonably withhold its consent.

	
 

	
            11.       This Consent is not assignable, nor shall this Consent be consent to any amendment, modification, extension or renewal of the Sublease, without Landlord's prior written consent.

	
 

	
            12.       Tenant covenants and agrees that under no circumstances shall Landlord be liable for any brokerage commission or other charge or expense in connection with the Sublease and Tenant agrees to indemnity, protect, defend and hold Landlord harmless against same and against any cost or expense (including but not limited to counsel fees) incurred by Landlord in resisting any claim for such brokerage commission. Further, Subtenant agrees to indemnify, protect, defend and hold Landlord harmless against any cost or expense (including but not limited to counsel fees) incurred by Landlord in resisting any claim for brokerage commissions of brokers claiming through or as agent for Subtenant.

	
 

	
            13.       Tenant and Subtenant understand and acknowledge that Landlord's consent hereto is not consent to any improvement or alteration work being performed in the Sublet Premises, that Landlord's consent for such work must be separately sought and will not necessarily be given and that if such consent is given the same will be subject to Tenant and Subtenant's execution of Landlord's standard form of agreement with respect to work being performed in the Building by persons other than Landlord unless otherwise agreed to in writing by Landlord.

	
 

	
            14.       In the event of any conflict between the provisions of this Consent to Sublease and the provisions of the Sublease or the Master Lease, the provisions of this Consent to Sublease shall prevail.

	
 

	
            15.       Any notice or communication that any party hereto may desire or be required to give any other party under or with respect to this Consent to sublease shall be in writing and shall be deemed to have been given upon the earlier of actual receipt or the third day after deposit in the U.S. Mail, certified mail, return receipt requested, postage pre-paid, addressed to such other party in the case of Landlord at 3000 Executive Parkway, Suite 236, San Ramon, California, 94583, and in the case of Tenant at 201 Mission Street, San Francisco, CA 94105 and in the case of subtenant at the Sublet Premises, or in any case at such other address as such other party may have designated by notice given in accordance with the provisions of this paragraph.

	 

	 	6 	 

	 

	

	 

	
            16.       This Consent to Sublease shall be construed in accordance with the laws of the State of California and may not be changed or terminated orally or by course of conduct. This Consent to Sublease, together with the Master Lease, contains the entire agreement between Landlord, on the one hand, and Tenant and Subtenant, on the other hand, with respect to the subject matter hereof. Time is of the essence of each provision of this agreement.

	
 

	
            17.       Tenant and Subtenant agree, at any time, and from time to time, upon not less than 15 days prior notice by Landlord to execute, acknowledge and deliver to Landlord, a statement in writing certifying that the Sublease is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modifications), and the dates to which the fixed or base rental, additional rent and other charges have been paid, and stating whether or not to the best knowledge of the signer of such certificate, Tenant or Subtenant is in default in performance of any covenant, agreement, term, provision or condition contained in the Sublease and, if so, specifying each such default of which the signer may have knowledge, is being intended that any such statement delivered pursuant hereto may be relied upon by Landlord and any prospective purchaser or lessee of the Building, or lender or prospective lender to any such party.  Tenant and Subtenant also agree to execute and deliver from time to time such other estoppel certificates as a prospective purchaser or an institutional lender may require with respect to the Sublease.

	
 

	
            18.       In the event of any action or proceeding at law or in equity between or among the parties to this Consent to Sublease as a consequence of any controversy, claim or dispute relating to this agreement or the breach thereof or to enforce any of the provisions and/or rights hereunder, the unsuccessful party or parties to such action or proceeding shall pay to the successful party or parties all costs and expenses, including reasonable attorneys' fees incurred therein by such successful party or parties, and if such successful party or parties shall recover judgment in any such arbitration, action or proceeding, such costs, expenses and fees shall be included in and as part of such judgment.

	
 

	
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

	 

	 	7 	 

	 

	

	 

	
            19.       The execution of a copy of this Consent by Subtenant shall constitute Subtenant's acknowledgement that it has received a copy of the Master Lease from Tenant.

	
 

	
           IN WITNESS WHEREOF, the parties have executed this Consent to Sublease as of the date first written above.

	
 

	
                        TENANT:                  PROVIDIAN FINANCIAL, INC.,

	
                                                            a Delaware corporation

	
 

	
                                                            By: _____________________________

	
 

	
                                                            Title: ____________________________

	
 

	
 

	
                        SUBTENANT:          EVOLVE SOFTWARE, INC.,

	
                                                            a Delaware corporation

	
 

	
                                                            By: _____________________________

	
 

	
                                                            Title: ____________________________

	
 

	
                        LANDLORD:            PACIFIC SPEAR CORPORATION,

	
                                                            a Delaware corporation

	
 

	
                                                            By: _____________________________

	
                                                                   David A. Hennefer

	
 

	
                                                            Title:  Assistant-Secretary

	 

	 	8

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