Document:

exv10w1

 

Exhibit 10.1

LEASE AGREEMENT

Between

THE 1890 BUILDING

(Landlord)

And

NARA BANK

(Tenant)

Dated: January 27, 2005

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     This LEASE AGREEMENT (the “Lease”), dated this 27 day of January 2005, is made and
entered into by and between 1890 Building, a Partnership
(“Landlord”), and Nara Bank (“Tenant”).

Section 1.

The Premises

     Landlord is the owner of certain land, buildings, and improvements located at 1890 West
Redondo Beach Boulevard, Gardena, California 90247, as more particularly described in Exhibit “A”
attached hereto and incorporated herein by reference (the “Premises”). Landlord hereby leases to
Tenant, and Tenant hereby  leases from Landlord, the Premises on the terms and conditions set
forth herein.

     Landlord shall deliver the Premises to Tenant in a demised “broom clean” “as is” condition.
All electrical, plumbing, HVAC, and other related systems shall be in good repair to support the
Premises and Landlord hereby agrees to maintain, at its sole cost and expense, all of the
aforementioned systems in good repair during the first two years of the Lease Term.

Section 2.

Lease Term

     The term of this Lease (“Term”) shall be for a period of one-hundred twenty (120) months
beginning on the “Commencement Date”, as defined below, unless sooner terminated pursuant to the
terms of this Lease.

     The Commencement Date shall be the first day Tenant begins conducting its normal business
activities from the Premises or sixty (60) days following the date of delivery of the Premises to
Tenant (the “Delivery Date”); whichever shall first occur.

     Provided that (i) Tenant is not then in material default under the Lease and (ii) Tenant, or
an assignee or sublessee, is then occupying the Premises, Tenant shall have two (2) separate and
consecutive options to extend the Term for a period of five (5) years each. Upon the proper and
timely exercise of the option to extend (as hereinafter provided), and provided that Tenant is not
in default under this Lease as of the end of the initial Term, the Term, as it applies to the
Premises, shall be extended for five (5) years. The option shall be exercised by Tenant upon
receipt of prior written notice by Landlord not less than one hundred and eighty (180) days prior
to the expiration of the initial Term, or the extended term, stating that Tenant is exercising its
option.

     Notwithstanding any other provisions of this Lease, Tenant shall have the right to terminate
and forever cancel its obligations under this Lease (i) in the event Tenant does not obtain all
governmental (regulatory) approvals and corporate approvals necessary to conduct its banking
business from the Premises; (ii-i) should Tenant determine that a banking office and/or automatic
teller (“ATM”) machines may not lawfully be operated from
the Premises; (iii) if Tenant notifies
Landlord of any defects in the Premises, in writing, within sixty (60) days of the Delivery Date,
and Landlord does not agree to correct said defects within ten (10) days of receiving notice of the
alleged defects; or (iv) in the event Tenant is not given physical possession of the Premises on
or before February 1, 2005. Except as expressly provided herein, Tenant’s right to cancel the lease
under this Section 2 will end at the Commencement Date of the lease or at the date associated with
Section 2 subsection (iii) hereinabove, whichever is later.

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Section 3.

Rent

     During the Term of this Lease, Tenant shall pay rent to Landlord in the sum of $6,750.00 per
month (“Base Rent”) triple net during the Term commencing on the Commencement Date. Rent shall be
payable in advance on the first day of each month at the following address: 16012 S. WESTERN
AVENUE, SUITE #303, GARDENA, CA 90247 or at another address that Landlord may from time to time
designate by written notice to Tenant. Base Rent shall increase by three percent (3%) each year on
the anniversary of the Commencement Date throughout the initial term of this Lease.

     Upon Tenant’s exercise of its options to extend the term of the Lease under the provisions of
Section 2(c) hereof and commencing on the first month immediately following the expiration of the
initial Term of the Lease or the first option to extend the term of the Lease, the monthly rent
shall be increased by the higher of [i] the percentage increase in the Consumer Price Index for
All Urban Consumers in the Los Angeles-Anaheim-Riverside Area, published by the United States
Department of Labor, Bureau of Labor Statistics (1982-84 = 100), as of the Commencement Date and
the first day of the first month of any extended term of the Lease or [ii] a five percent (5%)
increase over the Base Rent paid during the last month of the prior term. Base Rent will increase
by 3% annually on the anniversary of the Commencement Date thereafter during each exercised
option period term.

Section 4.

Left intentionally blank.

Section 5.

Utilities

     During the Term, and any extended term created by Tenant’s exercise of the option(s) set
forth herein, Tenant shall pay, before delinquency, all charges or assessments for telephone,
water, sewer, gas, heat, electricity, garbage disposal, and all other utilities and services of
any kind that may be used on the Premises.

Section 6.

Taxes.

     During the term, and any extended term created by Tenant’s exercise of the option(s) set
forth herein, Tenant shall pay to the public authorities charged with the collection on or before
the last day on which payment may be made without penalty or interest, all property taxes, permit,
inspection, and license fees, and other public charges of whatever nature that are assessed
against the Premises or arise because of the occupancy, use, or possession of the Premises
incurred subsequent to the Commencement Date, but excluding any income, corporate, franchise,
capital stock, estate or inheritance taxes. Tenant shall also be obligated to pay any increased
property taxes incurred, in the event the Premises shall be transferred during the initial Term or
any extension thereof pursuant to the terms of this Lease, and a reassessment of taxes imposed
upon or attributable to the Premises pursuant to Proposition 13 occurs.

     Landlord agrees to give appropriate written instructions to public authorities for taxes,
assessments, and public charges payable by Tenant to ensure that statements and billings will be
mailed directly by public authorities to Tenant at the address set forth in Section 19. If Tenant
fails to pay taxes, assessments, and charges on or before the last day on which payment may be made
without penalty or

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interest, Landlord may, but shall not be obligated to, pay those taxes, assessments, or
charges, together
with interest and penalties. Any amounts that Landlord may pay pursuant to this provision
shall be repaid
to Landlord by Tenant on demand.

     All real estate taxes levied on the Premises for the tax year in which the
Commencement Date falls shall be appropriately prorated between Landlord and Tenant, so
that Tenant’s share will reflect the portion of that tax year in which Tenant had
possession of the Premises under this Lease. Tenant shall pay Tenant’s share of the taxes
directly to Landlord and not to the public authorities charged with the collection. That
payment shall constitute full performance by Tenant, and Landlord shall pay from those
funds and Landlord’s own funds all of the taxes for that tax year. Taxes levied on the
Premises for the tax year in which the lease is terminated shall be similarly prorated
between Landlord and Tenant to reflect the period of Tenant’s possession of the Premises
during that tax year. Tenant shall pay Tenant’s share of those taxes to Landlord directly
rather than to the public authorities, and that payment shall constitute full performance
under this Lease with respect to such tax liability, if any

     All taxes levied on the Premises for the tax year in which the Commencement Date
falls shall be appropriately prorated between Landlord and Tenant, so that Tenant’s share
will reflect the portion of that tax year in which Tenant had possession of the Premises
under this Lease. Taxes levied on the Premises for the tax year in which the Termination
Date occurs shall be similarly prorated between Landlord and Tenant to reflect the period
of Tenant’s possession of the Premises during that tax year.

Section 7.

Security Deposit

     Tenant shall deposit with Landlord a security deposit for the Premises upon execution of this
Agreement, the sum of $6,750 (“Security Deposit”), to be held in a separate account during the
term of
the Lease and any extensions thereof. It is agreed that if Landlord shall ever apply the Security
Deposit
for any reason, Tenant shall immediately deposit with Landlord funds sufficient to restore
the Security
Deposit to its original amount.

Section 8.

Use of Premises

     The Premises may be used for or as General offices, including, without limitation, to
offer banking services and marketing of any other financial services or investment
products, including insurance products, or for any other legal purpose.

     Tenant shall not do or permit to be done in or about the Premises or Building or
bring, keep or permit to be brought or kept therein, anything which is prohibited by any
standard form fire insurance policy or which will cause a weight load or stress on the
floor or any other portion of the Premises in excess of the weight load or stress which
the floor or other portion of the Premises is designed to bear. Landlord acknowledges that
Tenant may elect to install a vault at the Premises   Landlord makes no representation or
warranty that the flooring is suitable to hold the vault nor any other representations or
warranties whatsoever as to the physical condition, zoning condition, governmental
requirements, or any other condition relating to the Premises or the Tenant’s intended use
of the Premises.

     For the purposes of this Lease, the term “Hazardous Material” means any chemical, substance,
material, controlled substance, object, condition, waste or combination thereof which is or
may be
hazardous to human health or safety or to the environment due to its radioactivity,
ignitability, corrosivity,
reactivity, explosivity, toxicity, carcinogencity, infectiousness or other harmful or
potentially harmful
properties or effects, including, without limitation, medical products, petroleum and
petroleum products,
asbestos, radon, polychlorinated biphenyls (PCBs) and all of those chemicals, substances,
materials,
controlled substances, objects, conditions, wastes or combinations thereof which are now or
become in
the future listed, defined or regulated in any manner by any federal, state or local law
based upon, directly

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or indirectly, such properties or effects. The term “Hazardous Material” shall exclude small
amounts of cleaning fluids, inks, toners, etc, that may be used by Tenant or its agents in the
normal course of its business.

     Tenant hereby represents, warrants and covenants that: Tenant’s business operations in the
Premises do not involve the use, storage or generation of Hazardous Material; Tenant shall not
cause or permit any Hazardous Material to be brought upon, stored, manufactured, generated,
blended, handled, recycled, disposed of, used or released on, in, under or about the Premises,
Building or Project by Tenant or Tenant’s agents, employees, contractors, subtenants, assigns and
invitees.

Section 9.

Signage and Parking

     Tenant, at its sole expense, shall have the right to place its signs on the Premises and be
permitted to erect signage subject to reasonable approval by Landlord and the appropriate
governmental bodies. Tenant’s ATMs shall have signage consistent with its overall ATM sign
program. In addition, Tenant, with the consent of Landlord, shall have the right to place a sign
for any approved monument or pylon signs, if such monument or pylon signs are legally allowed.
Tenant shall also be entitled to place its signs on or about the Premises at any locations which
Tenant reasonably believes are likely to be the most beneficial for its business and marketing
objectives, subject to reasonable approval by Landlord.

     Tenant and its employees, customers and invitees shall have exclusive use of the parking lot
and may reconfigure, subject to reasonable approval by Landlord and the city of Gardena , at
Tenant’s sole cost and expense, and in compliance with all legal codes, regulations and
requirements.

Section 10.

Tenant Improvements, Alterations and Repairs

     Tenant, at its sole option, may demolish existing tenant improvements and install teller
counters, a vault, a night depository and up to two through-the-wall ATMS in the Premises. All
tenant improvements constructed by Tenant shall be approved in writing by Landlord prior to
commencement; such approval not to be unreasonably withheld, delayed, or conditioned.

     Tenant may enter the Premises prior to the Commencement Date, but after delivery of the
Premises to Tenant (the “Delivery Date”) without payment of any Rent for the purpose of performing
all Tenant Improvements, Alterations and Repairs to the Premises. All other terms of this Lease
(including but not limited to Tenant’s obligations to carry insurance and to maintain the
Premises) shall, however, be in effect after the delivery date.

     From and after the Delivery Date, Tenant, at its sole cost and expense, shall have the right
upon receipt of Landlord’s written and reasonable consent, which consent shall not be unreasonably
delayed, withheld or denied, to make alterations, additions, or improvements to the Premises
provided that such alterations, additions or improvements: (a) are normal for general office and
banking use, (b) do not adversely affect the utility or value of the Premises for future tenants,
(c) do not substantially alter the exterior appearance of the Premises, (d) are not of a structural
nature, and (e) are not otherwise prohibited under the Lease. Such alterations, additions, and
improvements to the Premises made by or for Tenant following the Delivery Date are collectively
called the “Alterations.” Tenant shall be permitted to make non-structural Alterations up to Twenty
Thousand Dollars) ($20,000.00), without Landlord’s approval or requirement to give prior written
notice so long as Tenant provides “as-built” documents upon completion.

     Any Alterations installed by Tenant during the Term shall be done in a first-class workmanlike
manner and in conformity with a valid building permit and/or all other permits or licenses when and
where required, copies of which shall be furnished to Landlord at least fourteen (14) days before
the work is

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commenced, and any work not acceptable to any governmental authority or agency having or
exercising jurisdiction over such work, or not reasonably satisfactory to Landlord, shall be
promptly replaced and corrected at Tenant’s sole cost and expense.

     Except as set forth in this Section 10 above, Tenant or Tenant’s contractors will in no event
be allowed to make plumbing, mechanical, or electrical improvements to the Premises or any
structural modification to the Premises without first obtaining Landlord’s written consent, which
consent shall not be unreasonably delayed, withheld, conditioned or denied.

     All work by Tenant shall be diligently and continuously pursued from the date of its
commencement through its completion; and

     Excepting Landlord’s obligations as set forth is Section 11, Tenant shall, at its sole cost
and expense, maintain the Premises in good and sanitary condition and repair at all times during
the Term. All damage, injury or breakage to any part or portion of the Premises caused by the
willful misconduct or negligent act or omission of Tenant or Tenant’s agents, employees or
invitees shall be promptly repaired by Tenant at its sole cost and expense.

     Tenant shall at all times keep the Premises free from any liens arising out of any work
performed or allegedly performed, materials furnished or allegedly furnished or obligations
incurred by or on behalf of Tenant. Tenant agrees to indemnify, defend with counsel to be mutually
agreed to by Landlord and Tenant, and hold Landlord harmless from and against any and all claims
for mechanics’, materialmen’s or other liens in connection with any alterations, repairs, or any
work performed, materials furnished or obligations incurred by or on behalf of Tenant. Landlord
reserves the right to enter the Premises for the purpose of posting such notices of
non-responsibility as may be permitted by law or desired by Landlord.

     If Tenant installs a vault in the Premises, Tenant may elect to remove the vault at the
expiration of the Term or earlier termination of this Lease. If Tenant elects to leave the vault in
the Premises, Landlord shall exercise the option to require Tenant to remove the vault from the
Premises at the expiration of the Term or earlier’termination of this Lease. In the event that
Tenant elects to remove the vault and/or Landlord requires Tenant to remove the vault, Tenant shall
be responsible for the full cost and expense of removing the vault from the Premises and shall
repair any damage to the Premises caused by such removal. If the Tenant fails to remove the vault
upon the Landlord’s request, then the Landlord may (but shall not be obligated to) remove the vault
and the cost of removal and repair of any damage together with all other damages which the Landlord
may suffer by reason of the failure of the Tenant to remove the vault, shall be charged to the
Tenant and paid by the Tenant upon demand.

     The removal of all other alterations from the Premises installed by Tenant shall be governed
as follows. Except to the extent the Tenant requests and the Landlord designates otherwise at the
time the Landlord approves such Alterations, all or any part of the Alterations (including,
without limitation, wall-to-wall carpeting and any wiring), whether made with or without the
consent of the Landlord, shall, at the election of the Landlord, either be removed by the Tenant
at the Tenant’s sole cost and expense before the expiration of the Term or shall remain upon the
Premises and be surrendered therewith at the expiration of the Term or earlier termination of this
Lease as the property of the Landlord. If the Landlord requires the removal of all or part of any
Alterations, the Tenant, at the Tenant’s sole cost and expense, shall repair any damage to the
Premises caused by such removal. If the Tenant fails to remove the Alterations upon the
Landlord’s request, then the Landlord may (but shall not be obligated to) remove them and the cost
of removal and repair of any damage together with all other damages which the Landlord may suffer
by reason of the failure of the Tenant to remove the Alterations, shall be charged to the Tenant
and paid by the Tenant upon demand.

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Section 11.

Landlord’s Obligations to Repair and Maintain

     Landlord shall, at its sole expense, maintain and repair the roof and structural elements of
the building as the same may exist from time to time. Landlord shall have no obligation to make
repairs under this Section until a reasonable time after receipt of written notice of the need for
such repairs has elapsed. Landlord will make repair within thirty (30) days following his receipt
of the written notice, if the repair work can be completed within thirty (30) days.

     Upon at least twenty four (24) hours prior written notice received by Tenant, Landlord shall
be permitted to enter the Premises during business hours for the purpose of making any
alterations, additions, improvements or repairs to the Premises as Landlord may deem necessary or
desirable, so long as such alterations, additions, improvements or repairs do not disrupt or
interfere with Tenant’s business. In the event of an emergency, Landlord may enter the Premises
without prior notice accompanied by a bank officer or a police or fire department officer.

Section 12. 

Building Services

Left intentionally blank.

Section 13.

Assignment and Subletting

     Only upon Landlord’s prior written consent, which consent shall not be unreasonably withheld,
delayed, conditioned or denied, Tenant may assign its interest in this Lease or in the Premises,
or sublease all or any part of the Premises, or allow any other person or entity to occupy or use
all or any part of the Premises. Any purported assignment or sublease without Landlord’s prior
written consent shall be voidable at the election of Landlord. No consent to one assignment or
sublease shall constitute a waiver of the provisions of this Section 13, with respect to another
assignment or sublease. Section 13 shall not be applicable in the event that Tenant has merged
into, and/or acquired by, another company.

     Tenant shall provide written notice to Landlord of: (i) Tenant’s intent to assign this Lease
or sublease all or any part of the Premises, (ii) the name of the proposed assignee or sublessee,
and (iii) the terms of the proposed assignment or sublease. Landlord shall, as soon as practicably
possible, but in no event later than thirty (30) days of receipt of such notice, and any additional
information requested by Landlord concerning the proposed assignee’s or sublessee’s financial
responsibility, elect to either consent to such proposed assignment or sublease or refuse such
consent, which refusal shall be on reasonable grounds, including, but not limited to, the net
worth, financial condition, operating history, and general reputation of the proposed assignee or
sublessee.

     Occupancy of all or part of the Premises by a wholly owned parent, subsidiary, or affiliated
company of Tenant shall not be deemed as assignment or sublease provided that such parent,
subsidiary or affiliated company was not formed as a subterfuge to avoid the requirements of this
Section 13.

     Landlord shall have the right from time to time to sell, encumber, convey, transfer, and/or
assign any of its rights and obligations under the Lease. However, such sale or transfer shall
not be made unless the new landlord agrees in writing to assume Landlord’s rights and obligations
to Tenant under the Lease and to recognize the Lease as a continuing obligation irrespective of
any transfers or ownership changes.

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Section 14.

Representations and Warranties

     As a material inducement to Tenant to enter into this Lease, and subject to the terms hereof,
Landlord represents and warrants to Tenant as follows: (a) [Landlord is a general partnership duly
organized, validly existing and in good standing under the laws of the State of California]; (b)
and Landlord has all the necessary power and authority to carry on its present business, to enter
into this Lease and perform Landlord’s obligations thereunder in accordance with its terms; (c)
the execution and delivery of this Lease and the performance by Landlord of its obligations
hereunder will not violate or constitute an event of default under the terms or provisions of any
agreement, document or instrument to which Landlord is a party or by which Landlord is bound; (d)
Landlord is the owner of the Premises and the Premises are not subject to any other lease or
sublease of any kind; and (e) except as otherwise contained in this Lease, there are no
representation or warranties of any kind whatsoever, express or implied, made by Tenant.

     Landlord further represents and warrants to Tenant that Landlord is unaware of any Hazardous
Materials (defined above) or underground storage tanks in, on, or under the Premises, except those
that are both (i) in compliance with all environmental laws and with permits issued pursuant
thereto and (ii) fully disclosed to Tenant in writing; (b) there are no past, present or
threatened Releases (defined below) of Hazardous Material in, on, under or from the Premises which
have not been fully remediated in accordance with environmental law; (c) there is no threat of any
Release of Hazardous Materials migrating to the Premises; (d) there is no past or present
violation of Environmental Laws, or with permits issued pursuant thereto, in connection with the
Property which has not been fully remediated in accordance with environmental law; (e) Landlord
does not have actual knowledge of, and has not received, any written or oral notice or other
communication from any person (including, but not limited to, a governmental entity) relating to
Hazardous Materials or remediation thereof at or from the Premises, of asserted liability of any
person having a relationship to the Premises under any environmental law, other environmental
conditions in connection with the Premises, or any actual or potential administrative or judicial
proceedings in connection with any of the foregoing; and (f) Landlord has truthfully and fully
provided to Tenant, in writing, any and aII information relating to conditions in, on, under or
from the Premises that is known to Landlord and that is contained in files and records of
Landlord, including, but not limited to, any reports relating to Hazardous Materials in, on, under
or from the Premises and/or to the environmental condition of the Premises. Landlord hereby assume
liability for, and hereby agree to pay, protect, defend (at trial and appellate levels) and with
attorneys, consultants and experts acceptable to Landlord, and save Tenant harmless from and
against, and hereby indemnify Tenant from and against any and all present or future liens,
damages, losses, liabilities, obligations, settlement payments, penalties, assessments, citations,
directives, claims, litigation, demands, defenses, judgments, suits, proceedings, costs,
disbursements and expenses of any kind or of any nature whatsoever (including, without limitation,
reasonable attorneys’, consultants’ and experts’ fees and disbursements actually incurred in
investigating, defending, settling or prosecuting any claim, litigation or proceeding) which may
at any time be imposed upon, incurred by or asserted or awarded against Tenant or the Premises,
and arising directly or indirectly from or out of the violation of any present or future local,
state or federal law, rule or regulation pertaining to environmental regulation, contamination or
clean-up, except where such violation results from the actions, negligence or gross negligence of
Tenant, or Tenant’s agents, employees or invitees.

     As a material inducement to Landlord to enter into this Lease, and subject to the terms
hereof, Tenant represents, warrants, covenants and acknowledges as follows: (a) Tenant is a
corporation duly organized, validly existing and in good standing under the laws of the United
States; (b) Tenant has all the necessary power and authority to carry on its present business, to
enter into this Lease and perform Tenant’s obligations thereunder in accordance with its terms; (c)
the execution and delivery of this Lease and the performance by Tenant of its obligations hereunder
will not violate or constitute an event of default under the terms or provisions of any agreement,
document or instrument to which Tenant is a party or by which Tenant is bound; and (d) except as
otherwise contained in this Lease, there are no representation or warranties of any kind
whatsoever, express or implied, made by Landlord.

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Section 15.

Insurance and Indemnification

     Tenant shall at its sole cost and expense defend, protect, indemnify, and hold Landlord and
his agents, contractors, licensees, employees, directors, officers, partners, lenders, trustees
and invitees (collectively, the “Landlord’s Agents”) harmless from and against any and all claims,
arising out of or in connection with Tenant’s use of the Premises, the conduct of Tenant’s
business, any activity, work or things done, permitted or allowed by Tenant in or about the
Premises, the nonobservance or nonperformance by Tenant of any statute, law, ordinance, rule or
regulation, or any willful misconduct or negligent act or omission of Tenant. Notwithstanding the
foregoing provisions of this Section, however, Tenant shall have no obligation to defend, protect,
indemnify, or hold Landlord harmless for any claim, loss or damage that is caused in whole or in
part by the willful misconduct or negligence of Landlord or any representative or agent of
Landlord.

     Tenant shall obtain at its sole cost and expense and keep in full force at all times after
Landlord’s delivery of the Premises to Tenant, policies of insurance covering the Premises and
perils related to the Tenant’s business activities on the Premises, including workers’
compensation and Employer’s Liability insurance which Tenant customarily maintains in effect with
respect to its other branch locations in Southern California.

     The Landlord and any lenders or other parties specified by the Landlord shall be named as
additional insureds under the Tenant’s general liability portion of the property insurance for the
Premises. Tenant’s general liability insurance coverage, which shall include Landlord and any
lenders or other parties specified by the Landlord as additional insureds, shall include, but not
be limited to any commercial general liability insurance coverage in addition to coverage for
automobile liability, excess umbrella liability, contents and loss of income procured by Tenant
for the Premises. Insurance provided by the Tenant shall be primary as to all covered claims and
any insurance carried by the Landlord is not excess and is non-contributing. Landlord may contact
the Tenant’s insurance company directly in the event that the Landlord elects to make a claim under
the Tenant’s insurance, after obtaining written approval from Tenant, which shall not be
unreasonably withheld, delayed or conditioned. Copies of policies or original certificates of
insurance with respect to each policy shall be delivered to the Landlord prior to the delivery of
the Premises to Tenant and thereafter, at least thirty (30) days before the expiration of each
existing policy.

     Landlord and Tenant release each other from any claims and demands of whatever nature for
damage, loss or injury to the Premises, or to the other’s property in, on or about the Premises,
that are caused by or result from risks or perils insured against under any insurance policies
required by the Lease to be carried by Landlord and/or Tenant and in force at the time of any such
damage, loss or injury. Neither Landlord nor Tenant shall be liable to the other for any damage
caused by fire or any of the risks insured against under any insurance policy required by the
Lease. Both Landlord and Tenant agree to have their respective property damage insurance carriers
waive any right to subrogation that such companies may have against Landlord or Tenant, as the
case may be, so long as the insurance is not invalidated thereby.

     Landlord shall maintain at all times after date of delivery of the Premises to the Tenant,
and throughout the entire Term of this Lease and any extended option term at Tenant’s expense
(Tenant shall pay the cost of such insurance promptly upon receipt of invoices thereof from the
Landlord), liability insurance as described herein below, in addition to, and not in lieu of, the
insurance required to be maintained by Tenant. Tenant shall not be named as an additional insured
therein.

     Landlord’s Liability Insurance-Building, Improvements and Rental Value:

     (a) Building and Improvements. The Landlord shall obtain and keep in force a policy or
policies in the name of Landlord, with loss payable to Landlord and to any Landlord(s) insuring
loss or
damage to the Premises. The amount of such insurance shall be equal to the full replacement cost
of the
Premises, as the same shall exist from time to time, or the amount required by any Lenders, but in
no

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event more than the commercially reasonable and available insurable value thereof. From and after
Landlord’s delivery of the Premise to Tenant and throughout the Term of the Lease and any
extension thereof, Tenant shall maintain insurance on Tenant’s owned alterations, Tenant’s utility
installations, Tenant’s trade fixtures and Tenant’s personal property. If the coverage is
available and commercially appropriate, such policy or policies shall insure against all risks of
direct physical loss or damage including coverage for debris removal and the enforcement of any
and all applicable laws, covenants or restrictions of record, building codes, regulations and/or
ordinances requiring the upgrading, demolition, reconstruction or replacement of any portion of
the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed
valuation provision in lieu of any coinsurance clause, and inflation guard protection causing an
increase in the annual property insurance coverage amount by a factor of not less than the
adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city
nearest to where the Premises are located. If such insurance coverage has a deductible clause, the
deductible amount shall not exceed $1,000 per occurrence and Tenant shall be liable for such
deductible amount in the event of an Insured Loss.

     (b) Rental Value. The Landlord shall obtain and keep in force a policy or policies in the
name of Landlord with loss payable to Landlord and any Lender, insuring the loss of the full Rent
for one (1) year. Said insurance shall provide that in the event the Lease is terminated by reason
of an insured loss, the period of indemnity for such coverage shall be extended beyond the date of
the completion of repairs or replacement of the Premises, to provide for one full year’s loss of
Rent from the date of any such loss. Said insurance shall contain an agreed valuation provision in
lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect
the projected Rent otherwise payable by Tenant, for the next twelve (12) month period. Tenant
shall be liable for any deductible amount in the event of such loss, which deductible amount shall
not exceed $1,000.

Section 16.

Damage or Destruction

     If, at any time prior to the expiration or earlier termination of the Lease or any extension
thereof, the Premises or the Building are wholly or partially damaged or destroyed by a casualty,
which casualty renders the Premises totally or partially inaccessible or unusable by Tenant in the
ordinary conduct of its business, and adequate insurance proceeds are available to Landlord, then:

     (a) If all repairs to such Premises or Building or Project can be completed within three (3)
months following the date of notice to Landlord of such damage or destruction without the
payment of
overtime or other premiums, and if such damage or destruction is not the result of the willful
misconduct
or negligence of Tenant, Landlord shall, at Landlord’s expense, repair the same and this
Lease shall
remain in full force and effect and a proportionate reduction of Rent shall be allowed Tenant
for such
portion of the Premises as shall be rendered inaccessible to or unusable by Tenant during the
period of
time that such portion is inaccessible or unusable, but not to exceed the proceeds received
from the
rental value of insurance; and

     (b) If such damage or destruction is not the result of the willful misconduct or negligence of
Tenant and if all such repairs cannot be completed within three (3) months following the date
of notice to
Landlord of such damage or destruction without the payment of overtime or other premiums,
Landlord
may, at Landlord’s sole and absolute option, upon written notice to Tenant given within thirty
(30) days
after notice to Landlord of the occurrence of such damage or destruction, elect to repair such
damage or
destruction at Landlord’s expense, and in such event, this Lease shall continue in full force
and effect but
the Rent shall be proportionately reduced as hereinabove provided but not to exceed the
proceeds
received from the rental value of insurance. If Landlord does not elect to make such repairs,
then either
party may, upon written notice to the other, terminate this Lease.

     If, at any time prior to the expiration or earlier termination of this Lease, the Premises is
totally or partially damaged or destroyed by a casualty, the loss to Landlord from which is not
fully covered by insurance maintained by Landlord or for Landlord’s benefit, which casualty renders
the Premises

10

 

inaccessible or unusable to Tenant in the ordinary course of its business, Landlord may, at its
option and at its expense, upon written notice to Tenant within thirty (30) days after the
occurrence of such damage or destruction, elect to repair or restore such damage or destruction,
or may elect to terminate this Lease effective upon sixty (60) days notice to Tenant. In the event
Landlord elects to repair or restore the premises, Rent shall be abated until the time Tenant is
able to resume conducting its normal business operations from the Premises but not to exceed the
proceeds received from the rental value of insurance.

     In the event Landlord elects to terminate this Lease in lieu of repairing or restoring the
Premises, Tenant shall have the option, exercisable at any time prior to the effective date of
Landlord’s termination notice, to repair or restore the Premises at its cost and expense in which
event the Lease shall not terminate but Rent shall be abated until such time as Tenant is able to
resume its normal business activities from the Premises but not to exceed the proceeds received
from the rental value of insurance.

     Notwithstanding anything to the contrary contained in this Section, if the Premises is wholly
or partially damaged or destroyed within the final twelve (12) months of the Term, Landlord or
Tenant may, at its option and by giving the other party notice within thirty (30) days after
notice of the occurrence of such damage or destruction, elect to terminate this Lease.

Section 17.

Eminent Domain

     If the whole of the Premises, or so much of the Premises as to render the balance unusable by
Tenant, shall be taken under the power of eminent domain, the Lease shall automatically terminate
as of the date of final judgment in such condemnation, or as of the date possession is taken by the
condemning authority, whichever is earlier. A sale by Landlord under threat of condemnation shall
constitute a “taking” for the purpose of this Section. No award for any partial or entire taking
shall be apportioned and Tenant assigns to Landlord any award which may be made in such taking or
condemnation, together with all rights of Tenant to such award, including, without limitation, any
award or compensation for the value of all or any part of the leasehold estate; provided that
nothing contained in this Section shall be deemed to give Landlord any interest in or to require
Tenant to assign to Landlord any award made to Tenant for (a) the taking of Tenant’s personal
property, or (b) interruption of or damage to Tenant’s business, (c) Tenant’s unamortized cost of
the Tenant Improvements to the extent paid for by Tenant, or (d)Tenant’s cost of relocating to new
location, including any award sufficient to cover increased rent or lease payments.

     In the event of a partial taking which does not result in a termination of the Lease, Rental
shall be proportionately reduced based on the portion of the Premises rendered unusable, and
Landlord shall restore the Premises or the Building to the extent of available condemnation
proceeds.

     No temporary taking of the Premises or any part of the Premises and/or of Tenant’s rights to
the Premises or under this Lease shall terminate this Lease unless the taking renders the balance
unusable by Tenant, in Tenant’s sole and absolute discretion, or give Tenant any right to any
abatement of any payments owed to Landlord pursuant to this Lease; any award made to Tenant by
reason of such temporary taking shall belong entirely to Tenant.

     Upon termination of the Lease pursuant to this Section, Tenant and Landlord hereby agree to
release each other from any and all obligations and liabilities with respect to the Lease except
such obligations and liabilities which arise or accrue prior to such termination.

Section 18.

Defaults

     Each of the following shall be an “Event of Default” by Tenant and a material breach of this
Lease:

11

 

     (a) Tenant shall fail to make any payment owed by Tenant under the Lease, as and when
due, and where such failure is not cured within ten (10) business days after receipt of
written notice to
Tenant; and

     (b) Tenant shall fail to observe, keep or perform any of the terms, covenants, agreements or
conditions under the Lease that Tenant is obligated to observe or perform, other than that
described in
Section 18(a) above, for a period of thirty (30) days after receipt of written notice to
Tenant of said failure;
provided however, that if the nature of Tenant’s default is such that more than thirty (30)
days are
reasonably required for its cure, then Tenant shall not be deemed to be in default so
specified within said
thirty (30) day period and diligently prosecutes the same to completion, which extended period
in no event
shall exceed three (3) months.

     Landlord shall not be in default in the performance of any obligation required to be
performed under this Lease unless Landlord has failed to perform such obligation within thirty
(30) days after the receipt of written notice from Tenant specifying in detail Landlord’s failure
to perform; provided, however, that if the nature of Landlord’s obligation is such that more than
thirty (30) days is required for its performance, Landlord shall not be deemed in default if
Landlord shall commence such performance within thirty (30) days and thereafter diligently pursues
the same to completion.

     Upon an Event of Default by Tenant, the Landlord shall have the right, in addition to all
other rights available to Landlord under this Lease or now or later permitted at law or in equity,
to terminate this Lease by providing Tenant with a written notice of termination, in which event
Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails to do so,
Landlord may, without prejudice to any other remedy which it may have for possession or arrearage
in rent, enter upon and take possession of the Premises and expel or remove Tenant and any other
person who may be occupying the Premises or any part thereof, without being liable for prosecution
or any claim or damages therefor; and Landlord may recover from Tenant the following: (i) The
worth at the time of award of any unpaid Rent which had been earned at the time of such
termination; (ii) The worth at the time of award of the amount by which the unpaid Rent which
would have been earned after termination until the time of award exceeds the amount of such Rent
loss that Tenant proves could have been reasonably avoided; (iii) The worth at the time of award
of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds
the amount of such Rent loss that Tenant proves could be reasonably avoided; and (iv) All
reasonable attorney fees incurred by Landlord relating to the default and termination of this
Lease plus interest on all sums due Landlord by Tenant at the legal interest rate not to exceed
ten percent (10%) per year (“Default Rate”).

     As used herein, the “worth at the time of award” is computed by discounting such amount at
the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one
percent (1%).

     Landlord shall have the remedy described in Civil Code §1951.4 (lessor may continue lease in
effect after lessee’s breach and abandonment and recover rent as it becomes due, if lessee has the
right to sublet or assign, subject only to reasonable limitations). Accordingly, if Landlord does
not elect to terminate this Lease on account of any default by Tenant, Landlord may, from time to
time, without terminating this Lease, enforce all of its rights and remedies under this Lease,
including the right to recover all rent as it becomes due.

     Upon an Event of Default by Tenant, Landlord shall also have the right, with or without
terminating this Lease, to re-enter the Premises and remove all persons and Tenant’s Personal
Property from the Premises, such property being removed and stored in a public warehouse or
elsewhere at Tenant’s sole cost and expense. No removal by Landlord of any persons or property in
the Premises shall constitute an election to terminate this Lease. Such an election to terminate
may only be made by Landlord in writing, or decreed by a court of competent jurisdiction.
Landlord’s right of entry shall include the right to remodel the Premises and re-let the Premises.
Rents collected by Landlord from any other tenant which occupies the Premises shall be offset
against the amounts owed to Landlord by Tenant. Tenant shall be responsible for any amounts not
recovered by Landlord from any other tenant. Any

12

 

payments made by Tenant shall be credited to the amounts owed by Tenant. No re-entry by Landlord
shall prevent Landlord from later terminating the Lease by written notice.

     The rights and remedies of the parties as set forth herein are not exclusive, and Landlord or
tenant may exercise any other right or remedy available to it under this Lease, at law or in
equity.

     If either Landlord or Tenant commences or engages in, or threatens to commence or engage in,
any action or litigation or arbitration against the other party arising out of or in connection
with the Lease of the Premises, or the Building, including but not limited to, any action for
recovery of any payment owed by either party under the Lease, or to recover possession of the
Premises, or for damages for breach of the Lease, the prevailing party shall be entitled to have
and recover from the losing party reasonable attorneys’ fees and other costs incurred in
connection with and preparation for such action.

Section 19.

Miscellaneous Provisions

     Surrender of Possession: Tenant shall surrender possession of the Premises
immediately upon the expiration or earlier termination of the Lease. If Tenant shall continue to
occupy or possess the Premises after such expiration or termination without the consent of
Landlord, then Tenant shall be a tenant at will, but if Landlord has consented to such holdover in
writing, Tenant shall be a tenant from month-to-month.

     Inspection and Access. Landlord may enter the Premises at all reasonable hours for
any reasonable purpose. Tenant, upon Landlord’s 24-hour advance notice, shall permit Landlord an
entry into the Premises. In the event of an emergency, Landlord may enter the Premises without any
advance notice if accompanied by a bank officer or a police or fire department officer. Tenants
shall have access to the Premises seven (7) days per week and twenty-four (24) hours per day.

     Surrender of Lease. The voluntary or other surrender of the Lease by Tenant, or a
mutual cancellation of the Lease, shall not work a merger, and shall, at the option of Landlord,
terminate all or any existing subleases or subtenancies, or may, at the option of Landlord,
operate as an assignment to it of Tenant’s interest in any or all such subleases or subtenancies.

     Waiver. The waiver by Landlord or Tenant of any term, covenant, agreement or
condition contained in this Lease shall not be deemed to be a waiver of any subsequent breach of
the same or of any other term, covenant, agreement, condition or provision of this Lease, nor
shall any custom or practice which may develop between the parties in the administration of the
Lease be construed to waive or lessen the right of Landlord or Tenant to insist upon the
performance by the other in strict accordance with all of the terms, covenants, agreements,
conditions, and provisions of the Lease. The subsequent acceptance by Landlord of any payment owed
by Tenant to Landlord under the Lease, or the payment of Rent by Tenant, shall not be deemed to be
a waiver of any preceding breach by Tenant of any term, covenant, agreement, condition or
provision of the Lease, other than the failure of Tenant to make the specific payment so accepted
by Landlord, regardless of Landlord’s or Tenant’s knowledge of such preceding breach at the time
of the making or acceptance of such payment.

     Sale by Landlord. In the event Landlord shall sell, assign, convey or transfer all or
a part of his interest in the Building or any part thereof to a party other than Tenant, Tenant
agrees to attorn to such transferee, assignee or new owner, and upon consummation of such sale,
conveyance or transfer, Landlord shall automatically be freed and relieved from all liability and
obligations accruing or to be performed from and after the date of such sale, transfer, or
conveyance. In the event of such sale, assignment, transfer or conveyance, Landlord shall transfer
to such transferee, assignee or new owner of the Building the balance of the Security Deposit, if
any, remaining after lawful deductions and in accordance with Civil Code Section 1950.7, after
notice to Tenant, and Landlord shall thereupon be relieved of all liability with respect to the
Security Deposit.

13

 

     Force
Majeure. One party shall not be chargeable with, liable for, or responsible to
the other party for anything or in any amount for any failure to perform or delay caused by: fire;
earthquake; explosion; flood; hurricane; the elements; acts of God or the public enemy; actions,
restrictions, limitations or interference of governmental authorities or agents; war; invasion;
insurrection; rebellion; riots; strikes or lockouts; inability to obtain necessary materials,
goods, equipment, services, utilities or labor; or any other cause which is beyond the reasonable
control of the party; and any such failure or delay due to said causes or any of them shall not be
deemed a breach of default in the performance of the Lease by the party.

     Estoppel Certificates. Tenant shall, at any time and from time to time, upon request
of Landlord, within thirty (30) days following notice of such request from Landlord, execute,
acknowledge and deliver to Landlord in recordable form, a certificate (the “Estoppel Certificate”)
in such other form as Landlord or any of its lenders, prospective purchasers, lienholders or
assignees may deem appropriate, as long as such certificate is reasonable and customary. Failure
by Tenant to deliver the Estoppel Certificate within such thirty (30) day period shall be deemed
to conclusively establish that this Lease is in full force and effect and has not been modified
except as may be represented by Landlord. Tenant irrevocably constitutes and appoints Landlord as
its special attorney-in-fact to execute and deliver the Estoppel Certificate to any lender,
purchaser, investor or lienholder if the Estoppel Certificate is not executed by Tenant and
delivered to Landlord within the 7 day period.

     Notices. All notices, requests, consents, approvals, payments in connection with the
Lease, or communications that either party desires or is required or permitted to give or make to
the other party under the Lease must be in writing and shall only be deemed to have been given,
made and delivered, when received, if personally served, or when mailed, if deposited in the U. S.
mail, certified or registered mail, postage prepaid, and addressed to the parties as set forth in
this Section or to such other address or addresses as either Landlord or Tenant may from time to
time designate to the other by written notice in accordance herewith:

	 	 	 
	If to
Landlord:

	 	If to Tenant:
	 
	 	 
	Ronald Toma

	 	Nara Bank
	16012
S Western Avenue Suite 303

	 	Attn: J. Han Park
	Gardena, CA 90247

	 	3701 Wilshire Blvd., Suite 303
	 

	 	Los Angeles, California 90010

     Option to Purchase. Landlord will offer the property upon which the Building and
Premises are located first exclusively to Tenant in the event that Landlord decides to sell the
property during the term of the Lease. In such event, Tenant must be current under all material
terms and conditions of the Lease, and Tenant will be given thirty (30) calendar days, from the
date that Landlord notifies Tenant of the election to sell the property, to deliver to Landlord in
writing, the terms and conditions under which Tenant is willing to agree to purchase the property.
Landlord shall then have fifteen (15) calendar days in which to accept or reject such terms. If
Landlord accepts the offer in writing, Tenant will complete its purchase of and take title to the
property within the period of time described in such offer. If Landlord does not accept Tenant’s
offer within the time required, or should Tenant fail to complete its purchase of the property
within the time required, Landlord shall be free to market and sell the property at any terms that
are greater than those presented by Tenant in its prior offer as described above. If Landlord later
wishes to sell the property on terms equal to or less than Tenant’s offer as described herein,
Landlord shall first present the Tenant with another opportunity to purchase the property on said
terms, and the Tenant shall have the right to accept such offer within 10 days after receipt of
written notice thereof. It is also agreed that Landlord need not comply with the foregoing if a
sale or transfer occurs amongst owners, if any sale or transfer
involves 50% or less of the
ownership interest, or any transfer of partnership interests between the owners of the Premises
results in the incorporation or formation of some other form of legal entity owning the Premises,
involving common ownership in the new entity by and among some or all of the previous owners. For
the purposes of these exceptions, the definition of owners shall apply equally to the current
owners of the Premises and their successors, heirs and/or any other individual who may inherit an
interest in the Premises. It is also agreed that should Tenant initiate an offer to purchase

14

 

the property prior to a decision by Landlord to sell, then Landlord’s refusal of such offer shall
not nullify its aforementioned obligation to first offer the property exclusively to the Lessee in
the event that Landlord later offers the property for sale. It is further agree that should Tenant
purchase the Premises as set forth in this Section, then Landlord shall pay BankSite 2% of the
purchase price paid by Tenant through escrow.

     Entire Agreement. The Lease contains the entire agreement between the parties
respecting the Premises and all other matters covered or mentioned in the Lease. The Lease may not
be altered, changed or amended except by an instrument in writing signed by both parties hereto.

     Severability. The illegality, invalidity or unenforceability of any term, condition,
or provision of the Lease shall in no way impair or invalidate any other term, condition or
provision of the Lease, and all such other terms, conditions and provisions shall remain in full
force and effect.

     Governing Law. The Lease shall be governed by and construed pursuant to the laws of
the State of California. LANDLORD AND TENANT EACH AGREE TO AND THEY HEREBY DO WAIVE TRIAL BY JURY
IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE
OTHER ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE THE
RELATIONSHIP OF LANDLORD AND TENANT TENANT’S USE OR OCCUPANCY OF THIS PREMISES AND/OR ANY CLAIM OF
INJURY OR DAMAGE, AND ANY STATUTORY REMEDY.

     Lease Exhibits. Exhibit A attached to this Lease, is hereby incorporated by this
reference and made a part hereof.

     Time is of the Essence. Time shall be of the essence of the Lease and of each of the
provisions hereof,

     Cumulative Remedies. No remedy or election provided, allowed or given by any
provision of the Lease shall be deemed exclusive unless so indicated, but shall, whenever
possible, be cumulative with all other remedies at law or in equity.

     Broker. BankSite is acting as the exclusive agent of Tenant for the Premises.
Brokerage commission is to be paid exclusively by Landlord to BankSite in the amount of 3% of
the Base Rent payable by Tenant during the initial five (5) year Term and 1.5% of the Base Rent
payable by Tenant during any lease term in excess of the initial 5 year term. The commission is to
be paid half upon the mutual execution of the Lease and receipt of the security deposit required in
Section 7 of the Lease and the remainder upon Tenant’s opening for business.

     IN WITNESS WHEREOF, the parties have executed this Lease as of the date first above written,
acknowledged that party has carefully read each and every provision of the Lease, that each party
has freely entered into the Lease of its own free will and violation, and that the terms,
conditions and provisions of the Lease are commercially reasonable as of the date first above
written.

	 	 	 	 	 	 	 	 	 
	LANDLORD

	 	 	 	 	 	TENANT	 	 
	The 1890 Building	 	 	 	Nara Bank
	 
	 	 	 	 	 	 	 	 
	By :

	 	/s/ RONALD TOMA
	 	 	 	By:
	 	/s/ J. HAN PARK
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name : RONALD TOMA	 	 	 	Name : J. HAN PARK
	 
	 	 	 	 	 	 	 	 
	Title: Partner	 	 	 	Title: SVP
	 
	 	 	 	 	 	 	 	 
	Date: 1-27-05	 	 	 	Date: 1-27-05

15exv10w2

 

Exhibit 10.2

STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE — NET

AIR COMMERCIAL REAL ESTATE ASSOCIATION

1. Basic Provisions
(“Basic Provisions”).

     1.1 Parties: This Lease (“Lease”), dated for reference purposes only February 28, 2005,
is made by and between Jae M. Choi and Henry C, Park (“Lessor”)
and Nara Bank (“Lessee”), (collectively the “Parties”, or individually a “Party”)

     1.2(a) Premises: That certain portion of the Project (as defined below),
including all improvements therein or to be provided by Lessor under
the terms of this Lease, commonly known by the street address of
10055 Garden Grove Blvd. Unit A, located in the City of
Garden Grove, County of Orange County, State of California, with zip code 92844, as outlined on Exhibit “A” attached
hereto (“Premises”) and generally described as (describe briefly the nature of the Premises): Approximately 2,640
Square Feet of Retail Space. Portion of Larger Strip Center
AKA Central Plaza Shopping Center.

In addition to Lessee’s rights to use and occupy the Premises as hereinafter specified,
Lessee shall have non-exclusive rights to the Common Areas as defined in Paragraph 2.7 below) us
hereinafter specified, but shall not have any rights to the roof, exterior walls or utility
raceways of the building containing the Premises (“Building”) or to any other buildings in the
Project. The Premises, the Building, the Common Areas, the land upon which they are located, along
with all other buildings and improvements thereon, are herein collectively referred to as the
“Project.” (See also Paragraph 2)

     1.2(b)
Parking:                                         
unreserved vehicle parking spaces (“Unreserved Parking Spaces”); and
10 (Ten) reserved vehicle parking spaces (“Reserved Parking
Spaces”). (See also Paragraph 2.6)

     1.3 Term: 10 years and 0 months (“Original Term”) commencing March 1, 2005 (“Commencement Date”) and ending February 28,
2015 (“Expiration Date”). (See also Paragraph 3)

     1.4 Early Possession: N/A (“Early Possession Date”)
(See also Paragraph 3.2 and 3.2)

     1.5
Base Rent: $3,300.00 per month (“Base Rent”), payable on the 1st day of each month commencing March 1, 2005.
(See also Paragraph 4)

x
if this box is checked, there are provisions in this Lease for the base Rent to be
adjusted.

     1.6 Lessee’s Share of Common Area Operating Expenses: Fourteen and One Half percent (14.5%) (“Lessee’s Share”).

     1.7 Base Rent and Other Monies Paid Upon Execution:

          (a) Base Rent: $ 3,300.00 for the period March 1 — March 31, 2005

          (b) Common Area Operating Expenses: $ N/A for the period                                  

          (c) Security
Deposit: $ 6,600,00 (“Security Deposit”). (See also Paragraph 5)

          (d) Other: $ N/A for                                                

          (e) Total
Due Upon Execution of this Lease: $9,900.00.

     1.8 Agreed Use: Full Service Retail Bank end Related Business. (See also Paragraph 6)

     1.9 Insuring Party. Lessor is the “Insuring Party”. (See also Paragraph 8)

     1.10 Real Estate Broker: (See also Paragraph 15)

          (a) Representation: The following real estate brokers (the “Broker”) and brokerage
relationships exist in this transaction (check
applicable boxes):

o N/A represents Lessor exclusively (“Lessor’s Broker”);

o
N/A represents Lessee exclusively (“Lessor Broker”); or

o N/A represents both Lessor and Lessee (“Dual Agency”).

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

     1.11 Guarantor. The obligations of the Lessee under this Lease are to be guaranteed by N/A
(“Guarantor”). (See also Paragraph 37)

     1.12 Addenda and Exhibits. Attached hereto is an Addendum or Addends consisting of Paragraphs 50 through 61
and Exhibit                  through                  , all of which constitute a part of this Leese.

2. Premises.

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

     2.2 Condition. Lessor shall deliver that portion of the Premises contained within the Building
(“Unit”) to Lessee broom clean and free of
debris on the Commencement Date or the Early Possession Date, whichever first occurs (“Start
Date”), and, so long as the required service contract described in Paragraph 7.1(b) below are obtained by Lessee and in effect within thirty days following the Start Date, warrants that the existing electrical,
plumbing, fire sprinkler, lighting, heading ventilating and air conditioning systems (“HVAC”), loading doors. If any, and all other such elements in the Unit,
other than those constructed by Lessee, shall be in good operating condition on said date and that the structural elements of the roof, heading wells and

	 	 	 
	 
	 	[ILLEGIBLE]

	 	 	 
	 
	 	[ILLEGIBLE]

	 

	 	 
	Initials

	 	Initials

©1999 - AIR Commercial Real
Estate Association

Page 1 of 12

 

foundation of the Unit shall
be from of material defects. If a non-compliance with such
warranty exists as of the Start Date, or if one of such systems or elements should malfunction or
fail within the appropriate warranty period, Lessor shall, as Lessor’s sole obligation with respect
to such matter, except as otherwise provided in this Lease, promptly after receipt of written
notice from Lessee setting forth with specificity the nature and extent of such non-compliance,
malfunction or failure, rectify same at Lessor’s expense. The warranty periods shall be at
follows; (i) 6 months as to the HVAC systems, and (ii) 30 days as to the remaining systems and
other elements of the Unit. If Lessee does not give Lessor the required notice within the
appropriate warranty period, correction of any such non-compliance, malfunction or failure shall
be the obligation of Lessee at Lessee’s sole cost and expense (except for the repairs to the fire
sprinkler systems, roof, foundations, and/or bearing walls — see Paragraph 7).

     2.3 Compliance. Lessor warrants that the improvements on the Premises and the Common
Areas comply with the building codes that were
in effect at the time that each such improvement, or portion thereof, was constructed, and
also with all applicable laws, covenants or restrictions of record,
regulations, and ordinances in effect on the Start Date (“Applicable Requirements”). Said
warranty does not apply to the use to which Lessee will put the Premises or to any Alterations or
Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee
is responsible for determining whether or not the Applicable Requirements, and especially the
zoning, are appropriate for Lessee’s intended use, and acknowledges that past uses of the
Premises may no longer be allowed. If the Premises do not comply with
said warranty, Lessor
shall, except as otherwise provided, promptly after receipt of written notice from Lessee setting
forth with specificity the nature and extent of such non-compliance, rectify the same at Lessor’s
expense. If Lessee does not give Lessor written notice of a non-compliance with this warranty
within 6 months following the Start Date, correction of that non-compliance shall be the
obligation of Lessee at Lessee’s sole cost and expense. If the Applicable Requirements are
hereafter changed so as to require during the term of this Lease the construction of an addition
to or an alteration of the Unit, Premises and/or Building, the remediation of any Hazardous
Substance, or the reinforcement or other physical modification of the
Unit, Promises and/or
Building (“Capital Expenditure”), Lessor and Lessee shall
allocate the cost of such work as follows:

               (a) Subject
to Paragraph 2.3(c) below, it such Capital Expenditures are
required as a result
of the specific and unique use of the
Premises by Lessee as compared with uses by tenants in general,
Lessee shall be fully
responsible for the cost thereof, provided, however that if such
Capital Expenditure is required during the last 2 years to this
Lease and the cost thereof
exceeds 6 months’ Base Rent, Lessee may instead terminate
the
Lease unless Lessor notifies Lessee, in writing, within 10 days after receipt of Lessee’s
termination notice that Lessor has elected to pay the difference
between the actual cost thereof and the amount equal to 6 months’ Base Rent. If Lessee elects
termination, Lessee shall immediately cease the use of the
Premises which requires such Capital Expenditure and deliver to
Lessor written notice

specifying a termination date at least 90 days thereafter. Such
termination date shall, however, in no event be earlier than the last day that Lessee could
legally utilize the Premises without commencing such Capital
Expenditure.

               (b) If
such Capital Expenditure is not the result of the specific and unique
use of the
Premises by Lessee (such as governmentally
mandated seismic modifications), then Lessor and Lessee shall
allocate the obligation to pay
for the portion of such costs reasonably attributable to the
Premises pursuant to the formula set out in Paragraph 7.1(d);
provided, however, that if such
Capital Expenditure is required during the last 2 years of this
Lease or if Lessor reasonably determines that it is not economically
feasible to pay its
share thereof, Lessor shall have the option to terminate this Lease
upon 90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within
10 days after receipt of Lessor’s termination notice that Lessee will
pay for such Capital Expenditure. If Lessor does not elect to
terminate, and fails to
tender its share of any such Capital Expenditure, Lessee may advance
such funds and deduct same, with interest, from Rent until
Lessor’s share of such costs have
been fully paid. If Lessee is unable to finance Lessor’s share,
or if the balance of the Rent due and payable for the remainder of
this Lease is not
sufficient to fully reimburse Lessee on an offset basis, Lessee shall
have
the right to terminate this Lease upon 30 days written notice to
Lessor.

               (c) Notwithstanding
the above, the provisions concerning Capital Expenditures are intended
to apply only to non-voluntary, unexpected, and new Applicable
Requirements. If the Capital
Expenditures are instead triggered by Lessee as a result of an actual or proposed change in
use, change in intensity of use, or modification to the Premises then,
and in that event,
Lessee shall be fully responsible for the cost thereof, and Lessee
shall not have any right to
terminate this Lease.

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

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

     2.6
Vehicle Parking. Lessee shall be entitled to use the number of Unreserved Parking Spaces
and Reserved Parking Spaces specified in
Paragraph 1.2(b) on those portions of the Common Areas designated from time to time by Lessor
for parking. Lessee shall not use more parking spaces
than said number. Said parking spaces shall be used for parking by vehicles no larger than
full-size passenger automobiles or pick-up trucks, herein called
“Permitted Size Vehicles.” Lessor may regulate the loading and unloading of vehicles by
adopting Rules and Regulations as provided in Paragraph 2.9. No
vehicles other than Permitted Size Vehicles may be parked in the
Common Area without the
prior written permission of Lessor.

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

               (b) Lessee
shall not service or store any vehicles in the Common Areas.

               (c) If
Lessee permits or allows any of the prohibited activities described in this Paragraph
2.6, than Lessor shall have the right,
without notice, in addition to such other rights and remedies that it may have, to remove or
tow away tho vehicle involved and charge the cost to Lessee,
which cost shall be immediately payable upon demand by Lessor.

     2.7
Common Areas — Definition. The term “Common Areas” is
defined as all areas and facilities outside the Premises and within the
exterior boundary line of the Project and Interior utility raceways
and Instalations within
the Unit that are provided and designated by the Lessor from time to
time for the general non-exclusive use of Lessor, Lessee and other
tenants of the Project and
their respective employees, suppliers, shippers, customers,
contractors and invitees, including parking areas, loading and
unloading areas, trash areas,
roadways, walkways, driveways and landscaped areas.

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

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

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

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

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

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

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

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

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

3. Term.

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

     3.2
Early Possession. If Lessee totally or partially occupies the Premises prior to the Commencement Date, the obligation to pay Base Rent shall
be abated for the period of such early possession. All other terms of
this Lease (including but not limited to the obligations to pay Lessess’s
share of Common Area Operating Expenses, Real Property Taxes and
insurance premiums and to maintain the premises) shall, however, be in effect during,
be in effect during such period. Any such early possession shall not effect the Expiration Date.

	 	 	 
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     3.3 Delay In Possession. Lessor agrees to use its best commercially reasonable efforts to
deliver possession of the Premises to
Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession
as agreed, Lessor shall not be subject to any
liability therefor, nor shall such failure affect the validity of this Lease.
Lessee shall not, however, be obligated to pay Rent
or perform its other obligations until it receives possession of the Premises. If possession is not delivered within
60 days after the Commencement Date, Lessee
may, at its option, by notice in writing within 10 days after the end of such 60 day period, cancel
this Lease, in which event the Parties shall be
discharged from all obligations hereunder. If such written notice is not received by Lessor within
said 10 day period, Lessee’s right to cancel shall
terminate. Except as otherwise provided, if possession is not tendered to Lessee by the Start Date
and Lessee does not terminate this Lease, as
aforesaid, any period of rent abatement that Lessee would otherwise have enjoyed shall run from the
date of delivery of possession and continue for a
period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days
of delay caused by the acts or omissions of
Lessee. If possession of the Premises is not delivered within 4 months after the Commencement Date,
this Lease shall terminate unless other
agreements are reached between Lessor and Lessee, in writing.

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

4. Rent.

     4.1. Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease
(except for the Security Deposit) are deemed to be rent
(“Rent”).

     4.2 Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in addition
to the Base Rent, Lessee’s
Share (as specified in Paragraph 1.6) of all Common Area Operating Expenses, as hereinafter
defined, during each calendar year of the term of this
Lease, in accordance with the following provisions:

          (a) “Common Area Operating Expenses” are defined, for purposes of this Lease, as all costs incurred
by Lessor relating to the ownership and operation of the Project, including, but not limited to, the following:

	 	(i)	 	The operation, repair and maintenance, in neat, clean, good
order and condition of the following:

(aa) The Common Areas and Common Area improvements, including parking areas, loading and unloading
areas,
trash areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers, irrigation
systems, Common Area lighting facilities, fences and
gates, elevators, roofs, and roof drainage systems.

(bb) Exterior signs and any tenant directories.

(cc) Any
fire detection and/or sprinkler systems.

	 	(ii)	 	The cost of water, gas, electricity and telephone to service the Common Areas and any
utilities not separately

metered.
	 
	 	(iii)	 	Trash disposal, pest control services, property management, security services,
and the costs of any environmental
inspections.
	 
	 	(iv)	 	Reserves set aside for maintenance and repair of Common Areas.
	 
	 	(v)	 	Real Property Taxes (as defined in Paragraph 10).
	 
	 	(vi)	 	The cost of the premiums for the insurance maintained by
Lessor pursuant to Paragraph 8.
	 
	 	(vii)	 	Any deductible portion of an insured loss concerning the Building or the Common Areas.
	 
	 	(viii)	 	The cost of any Capital Expenditure to the Building or the Project not covered under the
provisions of
Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such Capital
Expenditure over a 12 year period and Lessee shall not be
required to pay more than Lessee’s Share of 1/144th of the cost of such Capital Expenditure in any
given month.
	 
	 	(ix)	 	Any other services to be provided by Lessor that are stated elsewhere in this Lease to be a
Common Area Operating Expense.

          (b) Any Common Area Operating Expenses and Real Property Taxes that are specifically attributable
to the Unit, the Building or to any
other building in the Project or to the operation, repair and maintenance thereof, shall be
allocated entirely to such Unit, Building, or other building.
However, any Common Area Operating Expenses and Real Property Taxes that are not specifically
attributable to the Building or to any other building
or to the operation, repair and maintenance thereof, shall be equitably allocated by Lessor to all
buildings in the Project.

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

          
(d) Lessee’s Share of Common Area Operating Expenses shall be payable
by Lessee within 10 days after a reasonably detailed statement of actual
expenses is presented to Lessee. At Lessor’s option, however, an amount may
be estimated by Lessor from time to time of Lessee’s Share of annual Common
Area Operating Expenses and the same shall be payable monthly or quarterly, as
Lessor shall designate, during each 12 month period of the Lease term, on the
same day as the Base Rent is due hereunder. Lessor shall deliver to Lessee
within 60 days after the expiration of each calendar year a reasonably detailed
statement showing Lessee’s Share of the actual Common Area Operating
Expenses incurred during the preceding year. If Lessee’s payments under
this Paragraph 4.2(d) during the preceding year exceed Lessee’s Share as
indicated on such statement, Lessor shall credit the amount of such over-payment
against Lessee’s Share of Common Area Operating Expenses next becoming due.
If Lessee’s payments under this Paragraph 4.2(d) during the preceding year
were less than Lessee’s Share as indicated on such statement. Lessee shall
pay to Lessor the amount of the deficiency within 10 days after delivery by
Lessor to Lessee of the statement.

     4.3 Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the
United States, without offset or
deduction (except as specifically permitted in this Lease), on or before the day on which it is
due. Rent for any period during the term hereof
which is for less than one full calendar month shall be
prorated based upon the actual number of days of said month. Payment of Rent shall be made to
Lessor at its address stated herein or to such other
persons or place as Lessor may from time to time designate in writing. Acceptance of a payment
which is less than the amount then due shall not be a
waiver of Lessor’s rights to the balance of such Rent, regardless of Lessor’s endorsement of any
check so stating. In the event that any check, draft, or
other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees
to pay to Lessor the sum of $25 in addition to any
late charges which may be due.

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

6. Use.

     6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use
which is reasonably comparable
thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a
manner that is unlawful, creates damage, waste or a
nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties.
Lessor shall
not unreasonably withhold or delay its consent to any
written request for a modification of the Agreed Use, so long as the same will not impair the
structural integrity of the improvements on the Premises or the mechanical or
electrical systems therein, and/or is not significantly more
burdensome to the Premises. If Lessor
elects to withhold consent, Lessor shall within 7 days
after such request give written notification of same, which notice shall include an explanation of
Lessor’s objections to the change in the Agreed Use.

     6.2 Hazardous Substances.

          (a) Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease shall
mean any product,
substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either
by itself or in combination with other materials
expected to be on the Premises, is either: (i) potentially injurious to the public health, safety
or welfare, the environment or the Premises, (ii) regulated
or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to
any governmental agency or third party under any applicable
statute or common law theory. Hazardous Substances shall include, but not be limited to,
hydrocarbons, petroleum, gasoline, and/or crude oil or any
products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the
Premises which constitutes a Reportable Use of
Hazardous Substances without the

	 	 	 	 	 
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express prior written consent of Lessor and timely compliance (at Lessee’s expense) with all
Applicable Requirements “Reportable Use” shall mean(i) the
installation or use of any above or below ground storage tank, (ii) the generation, possession, storage,
use, transportation, or disposal of a Hazardous
Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required
to be filed with, any governmental
authority, and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which
any Applicable Requirements requires that a notice be given to persons entering or occupying the
Premises or neighboring properties. Notwithstanding the foregoing, Lessee may use any ordinary and
customary materials reasonably required to be used in the normal course of the Agreed Use, so long
as such use is in compliance with all Applicable Requirements, is not a Reportable Use, and does not
expose the Premises or neighboring property to any meaningful risk of contamination or damage or
expose Lessor to any liability therefor. In addition, Lessor may condition its consent to any
Reportable Use upon receiving such additional assurances as Lessor reasonably deems necessary to
protect itself, the public, the Premises and/or the environment against damage, contamination, injury and/or
liability. Including, but not limited to, the installation (and removal on or before Lease
expiration or termination) of protective modifications (such as concrete encasements) and/or
increasing the Security Deposit.

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

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

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

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

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

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

      6.3 Lessee’s Compliance with Applicable Requirements. Except as otherwise provided in this
Lease, Lessee shall, at Lessee’s sole
expense, fully, diligently and in a timely manner, materially comply with all Applicable
Requirements, the requirements of any applicable fire insurance
underwriter or rating bureau, and the recommendations of Lessor’s engineers and/or
consultants which relate in any manner to the Premises, without regard
to whether said requirements are now in effect or become effective after the Start Date.
Lessee shall, within 10 days after receipt of Lessor’s written request,
provide Lessor with copies of all permits and other documents, and other information
evidencing Lessee’s compliance with any Applicable Requirements
specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with
copies of any documents involved) of any threatened or actual claim,
notice, citation, warning, complaint or report pertaining to or involving the failure of
Lessee or the Premises to comply with any Applicable Requirements.

      6.4 Inspection; Compliance. Lessor and Lessor’s “Lender” (as defined in Paragraph 30) and
consultants shall have the right to enter into
Premises at any time. In the case of an emergency, and otherwise at reasonable times, for the
purpose of inspecting the condition of the Premises and for
verifying compliance by lessee with this Lease. The cost of any such inspections shall be
paid by Lessor, unless a violation of Applicable Requirement, or a
contamination is found to exist or be imminent, or the inspection is requested or ordered by
a governmental authority. In such case, Lessee shall upon
request reimburse Lessor for the cost of such inspection, so long as such inspection is
reasonably related to the violation or contamination.

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

      7.1
Lessee’s Obligations.

            (a) In
General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance),
6.3 (Lessee’s Compliance with
Applicable Requirements), 7.2 (Lessor’s Obligations), 9 (Damage or Destruction), and 14
(Condemnation), Lessee shall, at Lessee’s sole expense, keep the
Premises, Utility installations (intended for lessee’s exclusive use, no matter where
located), and Alterations in good order, condition and repair (whether or
not the portion of the Premises requiring repairs, or the means of
repairing the same, are
reasonably or readily accessible to Lessee, and whether or not the
need for such repairs occurs as a result of Lessee’s use, any
prior use, the elements or the
age of such portion of the Premises), including, but not limited to,
all equipment or facilities, such as plumbing. HVAC equipment, electrical, lighting
facilities, boilers, pressure vessels, fixtures, interior walls, interior surfaces
of exterior walls, ceilings, floors, windows, doors, plate glass, and skylights but excluding
any items which are the responsibility of Lessor pursuant to
Paragraph 7.2. Lessee, in keeping the Premises in good order,
condition and repair, shall
exercise and perform good maintenance practices, specifically
including the procurement and maintenance of the service contracts required by Paragraph
7.1(b) below. Lessee’s obligations shall include restorations,
replacements or renewals when necessary to keep the Premises and all improvements thereon or a
part thereof in good order, condition and state of repair.

            (b) Service
Contracts. Lessee shall, at Lessee’s sole expense, procure and maintain
contracts, with copies to Lessor. In
customary form and substance for, and with contractors specializing and experienced in the
maintenance of the following equipment and improvements. If
any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler and pressure
vessels, (iii) clarifiers, and (iv) any other equipment, if reasonably
required by Lessor. However, Lessor reserves the right, upon notice to Lessee, to procure and
maintain any or all of such service contracts, and if Lessor so
elects, Lessee shall reimburse Lessor, upon demand, for the cost
thereof.

            (c) Failure
to Perform. If Lessee fails to perform Lessee’s obligations
under this Paragraph 7.1,
Lessor may enter upon the Premises after 10 days' prior written notice to Lessee (except in the case
of an emergency, in which case no notice shall be required), perform such obligations on Lessee’s
behalf, and put the Premises in good order, condition and repair, and Lessee shall promptly
reimburse Lessor for the cost thereof.

            (d) Replacement. Subject to Lessee’s indemnification of
Lessor as set forth in Paragraph 8.7 below, and without relieving Lessee
of liability resulting from Lessee’s failure to exercise and perform good maintenance practices,
if an item described in Paragraph 7.1(b) cannot be repaired
other than at a cost which is in excess
of 50% of the cost of replacing such item, then such item shall be replaced by Lessor, and the
cost thereof shall be prorated between the Parties and Lessee shall only be obligated to pay, each
month during the remainder of the term of this Lease, on the date on
which Base Rent is due, an
amount equal to the product of multiplying the cost of such replacement by a fraction, the
numerator of which is one, and the denominator of which is 144 (i.e 1/144th of the cost per
month). Lessee shall pay interest on the unamortized balance at a rate that is commercially
reasonable in the Judgment of Lessor’s accountants. Lessee may,
however, prepay its obligation at any
time.

      7.2
Lessor’s Obligations.  Subject to the provisions of
Paragraphs 2.2 (condition), 2.3 (Compliance), 4.2 (4.2 (Common Area
Operating Expenses), 6 (Use), 7.1 (Lessee’s Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessor, subject to reimbursement
pursuant to paragraph 4.2, shall keep in good order, condition and
repair the foundations, exterior walls, structural condition of interior bearing walls,
exterior roof, fire sprinkler system, Common Area fire alarm and/or
smoke detection systems, fire hydrants, parking lots, walkways, parkways,
driveways, landscaping, fences, signs and utility systems serving the
Common Areas and all parts thereof, as well as providing the services
for which there is a Common Area Operating Expense pursuant to
Paragraph 4.2. Lessor shall not be obligated to paint the exterior or
interior surfaces of exterior walls nor shall Lessor be obligated to
maintain,

	 	 	 	 	 
	
 

	 	 	 	
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repair or replace windows, doors or plate glass of the Premises. Lessee expressly waives the
benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms
of this Lease.

     7.3 Utility Installations; Trade Fixtures; Alterations.

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

          (b) Consent. Lessee shall not make any Alterations or Utility Installations to the Premises
without Lessor’s prior written consent. Lessee may, however, make non-structural Utility
Installations to the Interior of the Premises (excluding the roof) without such consent but upon
notice to Lessor as long they are not visible from the outside, do not involve
puncturing, relocating or removing the roof or any existing walls, and the cumulative cost
thereof during this Lease as extended does not exceed a sum equal to 3 month’s Base Rent in the
aggregate or a sum equal to one month’s Base Rent in any one year. Notwithstanding the foregoing,
Lessee shall not make or permit any roof penetrations and/or install anything on the roof without
the prior written approval of Lessor. Lessor may, as a precondition to granting such approval,
require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or
Utility Installations that Lessee shall desire to make and which require the consent of the
Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed
conditioned upon Lessee’s: (i) acquiring all applicable governmental permits, (ii) furnishing
Lessor with copies of both the permits and the plans and specifications prior to commencement of
the work, and (iii) compliance with all conditions of said permits and other Applicable
Requirements in a prompt and expeditious manner. Any Alterations or Utility installations shall
be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly
upon completion furnish Lessor with as-built plans and specifications. For work which costs an
amount in excess of one month’s Base Rent, Lessor may condition its consent upon Lessee providing
a lien and completion bond in an amount equal to 150% of the estimated cost of such Alteration or
Utility Installation and/or upon Lessee’s posting an additional Security Deposit with Lessor.

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

     7.4 Ownership; Removal; Surrender; and Restoration.

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

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

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

8. Insurance; Indemnity.

     8.1 Payment of Premiums. The cost of the premiums for the insurance policies required to be
carried by Lessor, pursuant to Paragraphs 8.2(b), 8.3(a) and 8.3(b), shall be a Common Area
Operating Expense. Premiums for policy periods commencing prior to, or extending beyond, the term
of this Lease shall be prorated to coincide with the corresponding Start Date or Expiration Date.

     8.2 Liability Insurance.

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

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

     8.3 Property Insurance — Building, Improvements and Rental Value.

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

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

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

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

     8.4 Lessee’s Property; Business Interruption Insurance.

          (a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of
Lessee’s personal property, Trade Fixtures, and Lessee Owned Alterations and Utility installations.
Such insurance shall be full replacement cost coverage with a deductible of not to exceed $1.000
per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of
personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations. Lessee
shall provide Lessor with written evidence that such insurance is in force.

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

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

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

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

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

     8.8 Exemption of Lessor from Liability. Lessor shall not be liable for injury or damage to the
person or goods, wares, merchandise
or other property of Lessee, Lessee’s employees, contractors, invitees, customers, or any other
person in or about the Premises, whether such damage
or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage,
obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or
lighting fixtures, or from any other cause, whether the said
injury or damage results from conditions arising upon the Premises or upon other portions of the
Building, or from other sources or places. Lessor shall
not be liable for any damages arising from any act or neglect of any other tenant of Lessor nor
from the failure of Lessor to enforce the provisions of any
other lease in the Project. Notwithstanding Lessor’s negligence or breach of this Lease, Lessor
shall under no circumstances be liable for injury to
Lessee’s business or for any loss of income or profit therefrom.

9. Damage or Destruction.

     9.1 Definitions.

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

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

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

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

          (e) “Hazardous Substance Condition” shall mean the occurrence or discovery of a condition involving
the presence of, or a
contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the
Premises.

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

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

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

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

     9.6 Abatement of Rent; Lessee’s Remedies.

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

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

     9.7 Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g) or
Paragraph 9, an equitable

	 	 	 	 	 
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adjustment shall be made concerning advance Base Rent and any other advance payments made by
Lessee to  Lessor. Lessor shall, in addition, return to Lessee so much of Lessee’s
Security Deposit as has not been, or is not then required to be, used by Lessor.

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

10. Real Property Taxes.

     10.1
Definition. As used herein, the term “Real Property
Taxes” shall include any form of
assessment; real estate, general, special, ordinary or extraordinary, or rental levy or tax (other
than inheritance, personal income or estate taxes); Improvement bond; and/or license fee imposed
upon or levied against any legal or equitable interface of Lessor in the Project. Lessor’s right to
other income therefrom, and/or Lessor’s business of leasing, by any authority having the direct or
indirect power to tax and where the funds are generated with reference to the Project address and
where the proceeds so generated are to be applied by the city. county or other local taxing
authority of a jurisdiction within which the Project is located. The term “Real Property Taxes”
shall also include any tax, fee, levy, assessment or charge, or any increase therein, imposed by
reason of events occurring during the term of this Lease, including but not limited to a change in
the ownership of the Project or any portion thereof or a change in the improvements thereon. In
calculating Real Property Taxes for any calender year, the Real Property Taxes for any real estate
tax year shall be included in the calculation of Real Property Taxes for such calender year based
upon the number of days which such calender year and tax year have in common.

     10.2 Payment of Taxes. Lessor shall pay the Real Property Taxes applicable to the Project,
and except as otherwise provided in Paragraph 10.3, any such amounts shall be included in that
calculation of Common Area Operating Expenses in accordance with the provisions of Paragraph 4.2.

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

 improvements

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

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

11. Utilities. Lessee shall pay for all water, gas, heat, light, power, telephone, trash
disposal and other utilities and services supplied to the Premises, together with any taxes
thereon. Notwithstanding the provisions of Paragraph 4.2, if at any time in Lessor’s sole
Judgment, Lessor determines that Lessee is using a disproportionate amount of water, electricity or
other commonly metered utilities, or that Lessee is generating such a large volume of trash as to
require an increase in the size of the dumpster and/or an increase in the number of times per month
that the dumpster is emptied, then Lessor may Increase Lessee’s Base Rent by an amount equal to
such increased costs.

12. Assignment and Subletting.

     12.1 Lessor’s Consent Required.

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

            (b) A change in the control of Lessee shall constitute an assignment requiring consent.
The transfer, on a cumulative basic, of 25% or more of the voting control of Lessee shall
constitute a change in control for this purpose.

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

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

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

     12.2 Terms and Conditions Applicable to Assignment and Subletting.

          (a) Regardless of Lessor’s consent. no assignment or subletting shall: (i) be
effective without the express written assumption by

such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee
of any obligations hereunder, or (iii) alter the primary liability of Lessee for the payment of
Rent or for the performance of any other obligations to be performed by Lessee.

          (b) Lessor may accept Rent or performance of Lessee’s obligations from any person other
than Lessee pending approval or

disapproval of an assignment. Neither a delay in the approval or disapproval of such assignment nor
the acceptance of Rent or performance shall constitute a waiver or estoppel of Lessor’s right to
exercise its remedies for Lessee’s Default or Breach.

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

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

          (e) Each request for consent to an assignment or subletting shall be in writing,
accompanied by information relevant to Lessor’s determination as to the financial and operational
responsibility and appropriateness of the proposed assignee or sublessee, including but not limited
to the intended use and/or required modification of the Promises, if any, together with a fee of
$1,000 or 10% of the current monthly Base Rent applicable to the portion of the Premises
which is the subject of the proposed assignment or sublease, whichever is greater, as consideration
for Lessor’s considering and processing said request. Lessee agrees to provide Lessor with such
other or additional information and/or documentation as may be reasonably requested.

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

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

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

          (a) Lessee hereby assigns and transfers to Lessor all of Lessee’s interest in all Rent
payable on any sublease, and Lessor may
collect such Rent and apply same toward Lessee’s obligations under this Lease; provided, however,
that until a Breach shall occur in the performance of Lessee’s obligations. Lessee may collect said
Rent Lessor shall not, by reason of the foregoing or any assignment of such sublease, nor by reason
of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform
and comply with any of Lessee’s obligations to such sublessee. Lessee hereby irrevocably authorizes
and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach
exists in the performance of Lessee’s obligations under this Lease, to pay to Lessor all Rent due
and to become due under the sublease. Sublessee shall rely upon any such notice from Lessor and
shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach
exists, notwithstanding any claim from Lessee to the contrary.

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

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

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

          (e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the
sublessee, who shall have the right to cure the
Default of Lessee within the grace period, if any, specified in such notice. The sublessee shall have
a right of reimbursement and offset from and against Lessee for any such Default cured by the sublessee.

13 Default; Breach: Remedies.

     13.1 Default: Breach. A “Default” is defined as a failure by the Lessee to comply
with or perform any of the terms, covenants, conditions or

	 	 	 	 	 
	
 

	 	 	 	
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Rules and Regulations under this Lease. A “Breach” is defined as the occurrence of one or
more of the following Defaults, and the failure of Lessee to euro such Default within any
applicable grace period:

          (a) The abandonment of the Premises; or the vacating of the Premises without providing a
commercially reasonable level of security, or where the coverage of the property insurance
described in Paragraph 5.3 is jeopardized as a result thereof, or without providing reasonable
assurances to minimize potential vandalism.

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

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

          (d) A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease,
or of the rules adopted under Paragraph 2.8 hereof, other than those described in subparagraphs
13.1(a), (b) or (c) above, where such Default continues for a period of 30 days after written
notice; provided, however, that if the nature of Lessee’s Default is such that more than 30 days
are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee
commences such cure within said 30 day period and thereafter diligently prosecutes such cure to
completion.

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

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

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

     13.2 Remedies. If Lessee fails to perform any of its affirmative duties or obligations,
within 10 days after written notice (or in case of an emergency, without notice). Lessor may, at
its option, perform such duty or obligation on Lesses’s behalf, including but not limited to the
obtaining of reasonably required bonds, insurance policies, or
governmental licensees, permits or
approvals. The costs and expenses of any such performance by Lessor shall be due and payable by
Lessee upon receipt of invoice therefor. If any check given to Lessor by Lessee shall not be
honored by the bank upon which it is drawn, Lessor, at its option, may require all future payments
to be made by Lessee to be by cashier’s check. In the event of a Breach, Lessor may, with or
without further notice or demand, and without limiting Lessor in the exercise of any right or
remedy which Lessor may have by reason of such Breach:

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

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

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

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

     13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause
Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain. Such costs Include, but are not limited to, processing and accounting
charges, and late charges which may be Imposed upon Lessor by any Lendor. Accordingly, If any Rent
shall not be received by Lessor within 5 days after such amount shall be due. then, without any
requirement for notice to Lessee, Lessee shall pay to Lessor a one-time late charge equal to 10% of
each such overdue amount or 1100. whichever is greater. The parties hereby agree that such late
charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of such
late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of
Lessee’s Default or Breach with respect to such overdue amount, nor prevent the exercise of any of
the other rights and remedies granted hereunder. In the event that a late charge is payable
hereunder, whether or not collected, for 3 consecutive Installments of Base Rent, then
notwithstanding any provision of this Lease to the contrary Base Rent shall, at Lessor’s option,
become due and payable quarterly in advance.

     13.5 Interest. Any monetary payment due Lessor hereunder other than late charges, not
received by Lessor. When due as to scheduled payments (such as Base Rent) or within 30 days
following the data on which it was due for non-scheduled payment, shall bear interest from the date
when due as to scheduled payments, or the 31st day after it was due as to non-scheduled payments.
The interest (“lnterest”) charged shall be equal to the prime rate reported in the Wall Street
Journal as published closest prior to the date when due plus 4%, but shall not exceed the maximum
rate allowed by law. Interest is payable in addition to the potential late charge provided for in
Paragraph 13.4.

13.6 Breach by Lessor.

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

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

14. Condemnation. If the premises or any portion thereof are taken under the power of aminent domain or sold under the threal of the
excercise of said power (Colloctively “Condemnation”) this lease shall terminate as to the part taken as of the date the authority takes title or possesion,
whichever first occurs. If more than 10% of the floor area of the Unit, or more man 25% of
Lessee’s Reserved Parking spaces, is taken by Condemnation

	 	 	 	 	 
	
 

	 	 	 	
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Lessee may, at Lessee’s option, to be exercised in writing within 10 days after Lessor shall
have given Lessee written notice of such
taking (or in the absence of such notice, within 10 days after the condemning authority shall have
taken possession) terminate this Lease as of the date
the condemning authority takes such possession. If Lessee does not terminate this Lease in
accordance with the foregoing, this Lease shall remain in
full force and effect as to the portion of the Premises remaining, except that the Base Rent shall
be reduced in proportion to the reduction in utility of the
Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of
Lessor, whether such award shall be made
as compensation for diminution in value of the leasehold, the value of the part taken, or for
severance damages; provided, however, that Lessee shall
be entitled to any compensation for Lessee’s relocation expenses, loss of business goodwill and/or
Trade Fixtures, without regard to whether or not this
Lease is terminated pursuant to the provisions of this Paragraph. All Alterations and Utility
Installations made to the Premises by Lessee, for purposes
of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled
to any and all compensation which is payable
therefor. In the event that this Lease is not terminated by reason of the Condemnation, Lessor
shall repair any damage to the Premises caused by
such Condemnation.

15. Brokerage Fees.

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

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

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

16. Estoppel Certificates.

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

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

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

17. Definition of
Lessor. The term “Lessor” as used herein shall mean the owner or owners at the
time in question of the fee title to the
Premises, or, if this is a sublease, of the Lessee’s interest in the prior lease. In the event of a
transfer of Lessor’s title or interest in the Premises or this
Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused
Security Deposit held by Lessor. Except as provided in
Paragraph 15, upon such transfer or assignment and delivery of the Security Deposit, as aforesaid,
the prior Lessor shall be relieved of all liability with
respect to the obligations and/or covenants under this Lease thereafter to be performed by the
Lessor. Subject to the foregoing, the obligations and/or
covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as
hereinabove defined. Notwithstanding the above, and subject to the
provisions of Paragraph 20 below, the original Lessor under this
Lease, and all subsequent holders of the Lessor's interest in this
Lease shall remain liable and responsible with regard to the
potential duties and liabilities of Lessor pertaining to Hazardous
Substances as outlined in Paragraph 6.2 above.

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

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

20. Limitation on
Liability. Subject to the provisions of Paragraph 17 above, the obligations of Lessor under this Lease shall not constitute
personal obligations of Lessor, the individual partners of Lessor or its or their individual partners,
directors, officers or shareholders, and Lessee shall look to the Premises, and to no
other assets of Lessor, for the satisfaction of any liability
of Lessor with respect to this Lease, and shall not seek recourse
against the individual partners of Lessor,
or its or their individual partners, directors, officers or shareholders, or any of their
personal assets for such satisfaction.

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

this Lease.

22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the
Parties with respect to any matter
mentioned herein, and no other prior or contemporaneous agreement or understanding shall be
effective. Lessor and Lessee each represents and
warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to
the nature, quality, character and financial responsibility
of the other Party to this Lease and as to the use, nature, quality and character of the Premises.
Brokers have no responsibility with respect thereto or
with respect to any default or breach hereof by either Party. The liability (including court costs
and attorneys’ fees), of any Broker with respect to
negotiation, execution, delivery or performance by either Lessor or Lessee under this Lease or any
amendment or modification hereto shall be limited to
an amount up to the fee received by such Broker pursuant to this Lease; provided, however, that the
foregoing limitation on each Broker’s liability shall
not be applicable to any gross negligence or willful misconduct of such Broker.

23. Notices.

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

     23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested,
shall be deemed given on the date of
delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent
by regular mail the notice shall be deemed given 48
hours after the same is addressed as required herein and mailed with postage prepaid. Notices
delivered by United States Express Mail or overnight
courier that guarantee next day delivery shall be deemed given 24 hours after delivery of the same
to the Postal Service or courier. Notices transmitted
by facsimile transmission or similar means shall be deemed delivered upon telephone confirmation of
receipt (confirmation report from fax machine is
sufficient), provided a copy is also delivered via delivery or mail. If notice is received on a
Saturday, Sunday or legal holiday, it shall be deemed
received on the next business day.

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

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

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

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

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

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

               
(b) Brokers have no responsibility with respect to any default or breech hereof by either
Party. The liability (including court costs and attorneys’
fees), for the new Broker, of any broker with respect to any
breach of duty, error or omission relating to this Lease shall not exceed the fee received by such
Broker pursuant to this Lease; provided, however, that the foregoing
limitation on each Broker’s
liability shall not be applicable to any gross negligence or willful
misconduct of such Broker. (c) Buyer and Seller agree to
identify to Brokers as ""Confidential'' any communication or
information given Brokers that is considered by such Party to be
confidential.

     26. No Right To Holdover. Lessee
has no right to retain possession of the Premises or any part
thereof beyond the expiration or termination of this
Lease. In the event that Lessee holds over, then the Base Rent shall
be increased to 150% of the
Base Rent applicable immediately preceding the expiration or
termination. Nothing contained herein
shall be construed as consent by Lessor to any holding over by Lessee.

     27. Cumulative Remedies. No remedy or
election hereunder shall be deemed exclusive but shall,
wherever possible, be cumulative with all other
remedies at law or in equity.

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

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

     30. Subordination;
Attornment; Non-Disturbance.

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

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

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

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

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

32. Lessor’s Access; Showing Premises; Repairs. Lessor and Lessor’s
agents shall have the right to enter the
Premises at any time, in the case of an emergency, and otherwise at reasonable times for the purpose of showing the
same to prospective purchasers, lenders, or tenants, and making such alterations, repairs,
improvements or additions to the Premises as Lessor may
deem necessary. All such
activities shall be without abatement of rent or
liability to Lessee. Lessor may at any time place on the Premises any
ordinary “For Sale” signs and Lessor may during the last 6 months of the term hereof place on the
Premises any ordinary “For Lease” signs. Lessee may at any time place on the Premises any ordinary
“For Sublease” sign.

33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises
without Lessor’s prior written consent.

Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to
permit an auction.

34. Signs. Except for ordinary “For Sublease” signs which may be placed only on the Premises,
Lessee shall not place any sign upon the Project
without Lessor’s prior written consent. All signs must comply with all Applicable Requirements.

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

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

37. Guarantor.

     37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form most recently
published by the AIR Commercial Real

Estate Association, and each such Guarantor shall have the same obligations as Lessee under this Lease.

     37.2 Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon
request to provide: (a) evidence of the

	 	 	 	 	 
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execution of the guaranty.
Including the authority of the party signing on
Guarantor’s behalf to obligate Guarantor, and in the case of a corporate
Guarantor, a certified copy of a resolution of its board of directors
authorizing the making of such guaranty, (b) current financial statements, (c)
and Estoppel Certificate, or (d) written confirmation that the guaranty is still
in effect.

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

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

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

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

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

     39.4
Effect of Default on Options.

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

          (b) The period of time within which an Option may be exercised shall not be
extended or enlarged by reason of Lessee’s inability to exercise an Option
because of the provisions of Paragraph 39.4(a).

          (c) An
Option shall terminate and be of no further force of effect,
notwithstanding Lessee’s due and timely exercise of the Option, If, after such
exercise and prior to the commencement of the extended term, (i) Lessee fails to
pay Rent for a period of 30 days after such Rent becomes due (without any
necessity of Lessor to give notice thereof), (ii) Lessor gives to Lessee 3 or more
notices of separate Default during any 12 month period, whether or not the
Defaults are cured, or (iii) if Lessee commite a Breach of this Lease.

40. Security Measures.
Lessee hereby acknowledges that the Rent payable to Lessor
hereunder does not include the cost of guard service or other security measures,
and that Lessor shall have no obligation whatsoever to provides same.
Lessee
assumes all responsibility for the protection of the Premises, Lessee. Its agents
and invitees and their property from the acts of third parties.

41. Reservations, Lessor reserves the right; (i) to grant, without the consent
or joinder of Lessee, such easements, rights and dedications that Lessor deems
necessary, (ii) to cause the recordation of parcel maps and restrictions, and
(iii) to create and/or install new utility raceways, so long as
such easements,
rights, dedications maps, restrictions, and utility raceways do not unreasonably
interfere with the use of the Premises by Lessee. Lessee agrees to sign any
documents reasonably requested by Lessor to effectuate such rights.

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

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

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

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

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

47. Multiple Parties. If more than one person or entity is named herein as
either Lessor or Lessee, such multiple Parties shall have joint and several
responsibility to comply with the terms of this Lease.

48. Waiver of Jury
Trial. The Parties hereby value their respective rights to
trial by jury in any action or proceeding involving the Property or
arising out
of the Agreement.

49. Mediation and
Arbitration of Disputes. An addendum requiring the Mediation
and/or the Arbitration of all disputes between the Parties and/or Brokers
arising out of this Lease o is o is not attached to this Lease.

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

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

1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THE LEASE.

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

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

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

	 	 	 	 	 	 	 	 	 
	Executed at:

	 	CITY OF GARDEN GROVE
	 	 	 	Executed at:	 	 
	 

	 	 	 	 	 	 	 	 

	on:

	 	3/16/05
	 	 	 	on:	 	 
	 

	 	 	 	 	 	 	 	 

	By
LESSOR:

	 	 	 	 	 	By LESSEE:	 	 
	 

	 	 	 	 	 	Nara Bank	 	 
	 
	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jac M Choi
	 	 	 	By:	 	 
	 

	 	 

	 	 	 	 	 	 

	Name Printed:

	 	Jac M. Choi
	 	 	 	Name Printed:	 	 
	 

	 	 	 	 	 	 	 	 

	Title:

	 	 	 	 	 	Title:	 	 
	 

	 	 

	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Henry C. Park
	 	 	 	By:	 	 
	 

	 	 

	 	 	 	 	 	 

	Name Printed:

	 	Henry C. Park
	 	 	 	Name Printed:	 	 
	 

	 	 	 	 	 	 	 	 

	Title:

	 	 	 	 	 	Title:	 	 
	 

	 	 

	 	 	 	 	 	 

	Address:

	 	 	 	 	 	Address:	 	 
	 

	 	 

	 	 	 	 	 	 

	 
	 	 	 	 

	 	 	 	 	 
	
 

	 	 	 	
[ILLEGIBLE]

	 
	 	 	 	 
	

	 	 	 	

 
	Initials

	 	
	 	 Initials

	 
	©
1998
- AIR Commercial Real Estate Association

	 	 
	 	FORM MTN-2-2/99E
	

	 	Page 11 of 12
	 	 

 

	 	 	 	 	 
	 

	 	 
	Telephone:
	(949) 337-2363

	 	Telephone:	(       ) 
	 	 

	 	 	 
	Facsimile:

	(949) 537-2191

	 	Facsimile: 	(       )
	 	 

	 	 	 
	Federal ID No.

	###-##-####

	 	Federal ID No. 	 
	 	 

	 	 	 

These forms are often modified to meet changing requirements of law and needs of the Industry.
Always write or call to make sure you are utilizing the most current form: AIR Commercial Real
Estate Association, 700 South Flower Street, Suite 600, Los Angeles, CA 90017.
(213) 887-8777.

©Copyright 1999 By AIR
Commercial Real Estate Association,

All rights reserved,

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

SEND PAYMENT TO:

CENTRAL PLAZA SHOPPING CENTER

ATTN: JAE H. CHOI

27525 PUERTA REAL, # 100-224

MISSION VIEJO, CA 92691

TEL: 949-337-2363

	 	 	 
	 
	 	[ILLEGIBLE]

	 	 	 
	 
	 	[ILLEGIBLE]

	 

	 	 
	Initials

	 	Initials

©1999 - AIR Commercial Real
Estate Association

Page 12 of 12

 

ADDENDUM TO LEASE

     This Addendum to Lease is made and executed concurrently with the Standard Industrial/Commercial
Multi-Tenant Lease – Net between Jae Choi and Henry Park
(“Lessor”) and Nara Bank (“Lessee”), dated
March 16, 2005 (“Lease”). The parties intend the provisions set forth in this Addendum to supersede
and replace those in the Lease. In the event these provisions contradict or conflict with those set
forth in the Lease, the parties agree that the provisions below are controlling.

50. Condemnation. If more than 25 percent (25%) of the Premises shall be taken or appropriated
by any public or quasi-public authority under the power of eminent domain, either party shall have
the right, at its option, within sixty (60) days of the date of condemning authority takes title or
possession, whichever occurs first, to terminate the Lease upon thirty (30) days written notice.
If either less than 25% is taken, or more than 25% is taken but neither party terminates the Lease,
the minimum rent will be equitably reduced. In the event of any taking or appropriation, Lessor
shall be entitled to any and all awards or settlement for the real property taken, including any
value for the unexpired lease term (bonus value). Lessee shall have no claims against Lessor
arising out of the condemnation. This provision does not prohibit Lessee from making claims against
the condemning authority for any claim for the cost of improvements to the Premises, any fixtures
or equipment, lost business goodwill or relocation costs. Lessor shall promptly advise Lessee of
any condemnation action commenced against the Premises.

51. Disclosures to Lessee. Lessee acknowledges that Lessor has disclosed, and that Lessee is
informed and aware of the planned Brookhurst Triangle Project, the Garden Grove Agency for
Community Development’s potential interest in the property and the Premises, and the potential
impacts the Project and Agency’s interests may have on the property and the Premises. Lessee
acknowledges that Lessor has met any and all obligations to provide Lessee with information on the
activities of the Garden Grove Agency for Community Development or the status of the Brookhurst
Triangle Project. Lessee assumes responsibility for keeping itself informed of any further
activities involving any potential condemnation of the property or Premises.

52. No Representations by
Lessor. Lessee acknowledges that Lessor is not making and has not at
any time made any representations of any kind or character, expressed
or implied, oral or written,
concerning: (i) the Brookhurst Triangle Project, (ii) the activities of the Garden Grove Agency for
Community Development, (iii) the likelihood of condemnation or impacts to the property or Premises
as a result of condemnation activities by any public or quasi-public agency. Lessee has not relied
and will not rely on, and Lessor is not liable for or bound by, any express or implied warranties,
guarantees, statements, representations, or information pertaining to any potential condemnation
activities involving the property or Premises made or furnished by Lessor, its property manager,
broker or other agent representing Lessor.

53. Due Diligence. Lessee acknowledges and agrees that Lessor has afforded Lessee, and that
Lessee has had a full opportunity to conduct and has conducted an investigation concerning: (i) the
Brookhurst Triangle Project, (ii) the activities of the Garden Grove Agency for Community
Development, (iii) the likelihood of condemnation impacts to the property or Premises as a result
of condemnation activities by any public or quasi-public agency.

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54. Use. The Premises may be used for or as General offices, including, without limitation, to
offer banking services and marketing of any other financial services or investment products,
including insurance products, or for any other legal purpose.

55. Option to Extend.
Provided that (i) Lessee is not then in material default under the Lease
and (ii) Lessee, or an assignee or sub lessee, is then occupying the Premises, Lessee shall have
two (2) separate and consecutive options to extend the Term for a period of five (5) years each.
Upon the proper and timely exercise of the option to extend (as hereinafter provided), and provided
that Lessee is not in default under this Lease as of the end of the initial Term as it applies to
the Premises, shall be extended for five (5) years. The option shall be exercised by Lessee upon
receipt of prior written notice by Landlord not less than ninety (90) days prior to the expiration
of the initial Term stating that Tenant is exercising its option.

56. Annual Rent
Adjustment. Base Rent shall increase annually in the amount of 3% throughout
the initial term of the lease and any exercised option periods, thereafter.

57. Tenant Improvements. Lessor shall deliver the Premises to Lessee in a demised “broom
clean” “as is” condition. All electrical, plumbing, HVAC, and other related systems shall be in
good repair to support the Premises, and Lessor hereby agrees to maintain, at its sole cost and
expense, all of the aforementioned systems in good repair during the first two years of the Lease
Term. Lessee, within ninety (90) days following its possession of the Premises, shall provide a
written notice to Lessor describing, in detail, any and all alleged defects. If written notice is
not timely given, Lessee shall be deemed to have been satisfied with, and accepted, the Premises.
If a written notice is given, Lessor will use its best efforts to promptly correct such defects
within a reasonable time period. Lessee, at its sole option, may demolish existing tenant
improvements and install teller counters, a vault, a night depository and up to two
through-the-wall ATMS in the Premises. All tenant improvements constructed by Lessee shall be
approved in writing by Lessor prior to commencement; such approval not to be unreasonably withheld,
delayed, or conditioned. Should Lessee install a vault, it will be Lessee’s sole option whether to
remove the vault.

58. Signage. Lessee, at its sole expense, shall have the right to place its signs on the
Premises and be permitted to erect signage subject to reasonable approval by Lessor and the
appropriate governmental bodies. Lessee’s ATMs shall have signage consistent with its overall ATM
sign program. In addition, Lessee shall have the right to place a sign for any approved monument
or pylon signs, if such monument or pylon signs are legally allowed. Lessee shall also be entitled
to place its signs on or about the Premises at any locations which Lessee reasonably believes are
likely to be the most beneficial for its business and marketing objectives.

59. Exclusivity. During the initial term and the term of any exercised options, Lessee is to be
granted the exclusive privilege to operate a bank and a through-the-wall ATM at Central Plaza
Shopping Center.

60. Assignment &
Subletting. Lessee shall not voluntarily or by operation of law assign, transfer,
mortgage or encumber or sublet all or any part of Lessee’s interest in this Lease or in the
Premises without Lessor’s prior written consent, which consent shall not be unreasonably withheld,
conditioned or delayed. Lessee may assign or sublet the Premises, or any portion thereof, without
Lessor’s consent, to any corporation which controls, is controlled by or is under common control
with Lessee, or to any corporation resulting from the merger or consolidation with Lessee, or to
any person or entity which acquires all the

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assets of Lessee as a going concern of the business that is being conducted on the Premises
provided that before such assignment shall be effective, (a) said assignee shall assume, in full,
the obligations of Lessee under this Lease and (b) Lessor shall be given written notice of such
assignment and assumption.

61. Exemption of Lessor
from Liability. Except for Lessor’s gross negligence or willful
misconduct, Lessor shall not be liable for injury or damage to the person or goods, wares,
merchandise or other property of Lessee, Lessee’s employees, contractor, invitees, customers, or
any other person in or about the Premises, whether such damage or injury is caused by or results
from fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or
other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures, or
from any other cause, whether the said injury or damage results from conditions arising upon the
Premises or upon other portions of the Building, or from other sources or places. Lessor shall not
be liable for any damages arising from any act or neglect of any other tenant of Lessor nor from
the failure of Lessor to enforce the provisions of any other lease in the Project. Notwithstanding
Lessor’s negligence or breach of this Lease, Lessor shall under no circumstances be liable for
injury to Lessee’s business or for any loss of income or profit therefrom.

Agreed, Accepted and Acknowledged this 16th day of March 2005.

	 	 	 
	NARA BANK
	 
	 	 
	By:
	 	 
	 

	 	 
	 
	 	 
	Name:
	 	 
	 

	 	 
	 
	 	 
	Title:
	 	 
	 

	 	 
	 
	 	 
	 
	 	 
	By:
	 	 
	 

	 	 
	 
	 	 
	Name:
	 	 
	 

	 	 
	 
	 	 
	Title:
	 	 
	 

	 	 

	 	 	 	 	 
	 	LESSOR

 	 
	 	/s/ Jae Moon Choi
 	 
	 	Jae Moon Choi 	 
	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	/s/ Henry Park
 	 
	 	Henry Park

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