Document:

Exhibit 10.2

 

Investment
Management Agreement

 

Among

 

ALLSTATE INVESTMENTS, LLC

And

 

ALLSTATE INSURANCE COMPANY

And

 

THE ALLSTATE CORPORATION

And

 

Certain Affiliates

 

This Agreement made and effective as of January 1, 2007, among ALLSTATE
INVESTMENTS, LLC, a Delaware limited liability company (“ALLSTATE INVESTMENTS”),
ALLSTATE INSURANCE COMPANY, an Illinois insurance company (“Allstate”), THE
ALLSTATE CORPORATION, a Delaware corporation and parent of Allstate and
ALLSTATE INVESTMENTS (“Allcorp”), and those additional subsidiaries of Allcorp
whose signatures appear below (individually an “Affiliate” and collectively
with Allstate and Allcorp, the “Allstate Affiliates”).

 

W I T N E S S E T H:

 

WHEREAS, ALLSTATE INVESTMENTS has been providing investment management
services to certain of the Allstate Affiliates pursuant to those certain
Investment Management Agreements, dated as of January 1, 2002, and April 29,
2003, which, by their terms, are terminating effective January 1, 2007, and
January 1, 2008, respectively, and the parties hereto desire to continue such
relationship and enter into a new Agreement for the rendering of investment
management services, effective as of the date hereof, subject to the terms and
conditions set forth herein.

 

NOW, THEREFORE, it is agreed as follows:

 

ARTICLE 1

INVESTMENT
MANAGEMENT SERVICES

 

1.1           Appointment.  Each Allstate Affiliate hereby engages
ALLSTATE INVESTMENTS as the investment manager of its investment assets and
grants ALLSTATE INVESTMENTS the power and authority to advise, manage, and
direct the investment and reinvestment of such assets for the period and on the
terms and conditions set forth herein. Such activities shall be conducted
subject to and in accordance with the investment objectives, restrictions, and
strategies set forth in the Investment Policy and 

 

1

 

Investment Plan (the “Policy”) adopted by the Board of Directors of
each such Allstate Affiliate with respect to its respective investment
portfolios, and in accordance with such other limitations and guidelines as may
be established from time to time for such portfolios by such Boards (such
investment objectives, restrictions, strategies, limitations, and guidelines
herein referred to collectively as the “Investment Guidelines”). ALLSTATE
INVESTMENTS hereby accepts such responsibility and agrees during such period to
render the services and to assume the obligations herein set forth, all as more
fully described in Exhibit A, attached hereto (the “Services”). Each of the
Allstate Affiliates may from time to time reach agreement with ALLSTATE
INVESTMENTS that only certain of the listed Services will be provided.

 

1.2           Charges and
Expenses.  Each Allstate Affiliate
agrees to pay ALLSTATE INVESTMENTS a fee for the Services equal to ALLSTATE
INVESTMENTS’ fully burdened basis point charge for the management of such
Allstate Affiliate’s portfolio. The fully burdened basis point charge is
ALLSTATE INVESTMENTS’ actual cost of managing the portfolios in which such
Allstate Affiliate invests, including the provision of all administrative,
reporting or other services required to manage the portfolios and provide the
Services. To the extent any of ALLSTATE INVESTMENTS’ costs are determined by
allocations from any Allstate Affiliate, the allocation shall be made in
accordance with the general provisions of the NAIC expense classification and
allocation guidelines applicable to all inter-company allocations between
Allstate and its insurance affiliates. ALLSTATE INVESTMENTS shall maintain and
make available for review by any Allstate Affiliate, or any regulator having
jurisdiction over such Allstate Affiliate, documentation showing the
calculation of all such charges. Any Allstate Affiliate may request a review of
such charges for the Services and such review will occur promptly thereafter.
All brokerage commissions and other direct transaction charges payable to third
parties shall be in addition to any fees payable to ALLSTATE INVESTMENTS for
Services and may be paid on each Allstate Affiliate’s behalf from the assets
in  such entities portfolio or may be
paid by ALLSTATE INVESTMENTS and reimbursed by such Allstate Affiliate.

 

1.3           Payment.  ALLSTATE INVESTMENTS will charge each Allstate
Affiliate  for the Services via the monthly expense
allocation process,  and payments
will be through the monthly intercompany settlement process. The process will
be completed by personnel of ALLSTATE INVESTMENTS and each of the Allstate
Affiliates in the most timely and effective method available.

 

ARTICLE 2

MISCELLANEOUS
PROVISIONS

 

2.1           Previous
Agreements.  Nothing in this
Agreement shall be deemed to amend any previously executed agreement between
the parties.

 

2.2           Scope of Services.  The scope of, and the manner in which,
ALLSTATE INVESTMENTS provides the Services to the Allstate Affiliates shall be
reviewed periodically by ALLSTATE INVESTMENTS and the Allstate Affiliates.

 

2

 

2.3           Standard of
Performance.  ALLSTATE INVESTMENTS
shall discharge its duties hereunder at all times in good faith and with that
degree of prudence, diligence, care and skill which a prudent person rendering
services as an institutional investment manager would exercise under similar
circumstances. The provisions of this Agreement shall not be interpreted to
imply any obligation on the part of ALLSTATE INVESTMENTS to observe any
standard of care other than as set forth in this Section 2.3.

 

2.4           Books and Records.  Upon reasonable notice, and during
normal business hours, each Allstate Affiliate shall be entitled to, at its own
expense, inspect records that pertain to the computation of charges for the
Services. ALLSTATE INVESTMENTS shall at all times maintain correct and complete
books, records and accounts of all Services. Each Allstate Affiliate shall have
unconditional right of ownership of any records prepared on its behalf under
this Agreement.

 

2.5           Liability of
ALLSTATE INVESTMENTS.  In the absence
of ALLSTATE INVESTMENTS’ willful or negligent misconduct (or the willful or
negligent misconduct of its officers, directors, agents, employees, controlling
persons, shareholders, and any other person or entity affiliated with ALLSTATE
INVESTMENTS or retained by it to perform or assist in the performance of its
obligations under this Agreement), neither ALLSTATE INVESTMENTS nor any of its
officers, directors, employees or agents shall be subject to liability to any
Allstate Affiliate for any act or omission in the course of, or connected with,
rendering services hereunder.

 

2.6           Independent
Contractor.  ALLSTATE INVESTMENTS
shall for all purposes be deemed to be an independent contractor. All persons
performing duties hereunder at all times during the term of this agreement
shall be under the supervision and control of ALLSTATE INVESTMENTS, and shall
not be deemed employees of any Allstate Affiliate as a result of this Agreement
and the Services provided hereunder. ALLSTATE INVESTMENTS shall have no power
or authority to bind any Allstate Affiliate or to assume or create an
obligation or responsibility, express or implied, on behalf of any Allstate
Affiliate, nor shall it represent to anyone that it has such power or
authority, except as expressly provided in this Agreement. Nothing in this
Agreement shall be deemed to create a partnership between or among the parties,
whether for purposes of taxation or otherwise.

 

2.7           Assignment.  ALLSTATE INVESTMENTS shall not assign its
obligations or rights under this Agreement without the written consent of each
Allstate Affiliate.

 

2.8           Term, Termination.  This Agreement shall remain in effect
for one year and shall be automatically renewed for subsequent one-year terms
unless sooner terminated by either party pursuant to this Section 2.8. ALLSTATE
INVESTMENTS may terminate this Agreement in its entirety, and each Allstate
Affiliate may cancel its participation in the arrangements under this
Agreement, each by giving six months written notice to the other parties to
this Agreement; provided, however, that in the event that the affiliate 

 

3

 

relationship ceases to exist with respect to any Affiliate, this
Agreement shall terminate immediately with respect to such Allstate Affiliate.

 

2.9           Notices.  All communications provided for hereunder
shall be in writing, and if to an Allstate Affiliate, mailed or delivered to
such Allstate Affiliate at its office at the address listed in such Affiliate’s
Statutory Annual Statement Blank, Attention: Secretary, or if to an entity not
filing a statutory Annual Statement Blank, mailed or delivered to its office at
3075 Sanders Road, Northbrook, Illinois 60062, Attention: Controller, or
addressed to any party at the address such party may hereafter designate by
written notice to the other parties.

 

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

 

	
   

  	
  The Allstate Corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Eric A.
  Simonson

  	
   

  
	
   

  	
  Eric A. Simonson

  
	
   

  	
  Chief Investment
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate
  Investments, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Eric A.
  Simonson

  	
   

  
	
   

  	
  Eric A. Simonson

  
	
   

  	
  President and Chief Investment Officer

  

 

4

 

	
   

  	
  ALFS,
  Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Assistant Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Assignment Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate
  Assurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate County Mutual Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Distributors, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Assistant Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Financial Corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  

 

5

 

	
   

  	
  Allstate Financial Services, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Assistant Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Financial, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Fire and Casualty Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Floridian Indemnity Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Floridian Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Indemnity Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  

 

6

 

	
   

  	
  Allstate International Insurance Holdings, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Life Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Motor Club, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate New Jersey Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate New Jersey Property and Casualty 

  Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Non-Insurance Holdings, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  

 

7

 

	
   

  	
  Allstate North American Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Property and Casualty Insurance

  Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Settlement Corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Allstate Texas Lloyd’s

  
	
   

  	
  by Allstate Texas Lloyd’s, Inc. (its attorney-in-

  fact)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  American Heritage Life Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  American Heritage Life Investment Corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  

 

8

 

	
   

  	
  Charter National Life Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Concord Heritage Life Insurance Company, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Deerbrook Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Encompass Floridian Indemnity Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Encompass Floridian Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Encompass Home and Auto Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  

 

9

 

	
   

  	
  Encompass Indemnity Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Encompass Independent Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Encompass Insurance Company of America

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Encompass Insurance Company of 

  Massachusetts

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C. Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Encompass Insurance Company of New Jersey

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Encompass Property and Casualty Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  

 

10

 

	
   

  	
  Encompass Property and Casualty Insurance 

  Company of New Jersey

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  First Colonial Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Ivantage Select Agency, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  	
   

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Lincoln Benefit Life Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Northbrook Indemnity Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Pembridge America, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  

 

11

 

	
   

  	
  Roadway Protection Auto Club, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Sterling Collision Centers, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Surety Life Insurance Company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tech-Cor, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Steven C.
  Verney

  	
   

  
	
   

  	
  Steven C. Verney

  
	
   

  	
  Treasurer

  	
   

  

 

12

 

Exhibit A

INVESTMENT SERVICES

 

A.            Appointment.  This Exhibit A details the Services to
be provided by ALLLSTATE INVESTMENTS pursuant to the Investment Management
Agreement among ALLSTATE INVESTMENTS and certain Allstate Affiliates to which
this Exhibit A is attached. For purposes of this Exhibit A, the investment
portfolio of each Allstate Affiliate will be referred to as an Account

 

B.            ALLSTATE
INVESTMENTS as Agent.  ALLSTATE
INVESTMENTS shall be granted and exercise full investment discretion and
authority in buying, selling or otherwise disposing of or managing the
investment of the assets held in each Account and in the performance of the
services rendered hereunder, and shall do so as each Allstate Affiliate’s agent
only, subject to ALLSTATE INVESTMENTS’ adherence to the Policies and Investment
Guidelines. Each Allstate Affiliate hereby authorizes ALLSTATE INVESTMENTS to
exercise all such powers with respect to the assets of its respective Account
as may be necessary or appropriate for the performance by ALLSTATE INVESTMENTS
of its obligations under the Agreement, subject to the supervision of the Board
of Directors of such Allstate affiliate (the “Board”), and any limitations
contained herein.

 

C.            Investment
Advisory Services.  In furtherance of
the foregoing, and in carrying out its obligations to manage the investment and
reinvestment of the assets in each Account, ALLSTATE INVESTMENTS shall, as
appropriate and consistent with the Investment Guidelines:

 

(a) perform research and obtain and evaluate such
information relating to the economics, industries, businesses, markets and new
investment structures, techniques, practices, and financial data as ALLSTATE
INVESTMENTS deems appropriate in the discharge of its duties under this
Agreement;  (b) consult with and furnish
to each Board recommendations with respect to overall investment strategies for
each respective Account;  (c) seek out
and implement specific investment opportunities, consistent with such overall
investment strategies approved by each Board, including making and carrying out
day-to-day decisions to acquire or dispose of permissible investments, managing
the investment of the assets of each Account, and providing or obtaining such
services as may be necessary in managing, acquiring or disposing of investments;
(d) regularly report to the Boards with respect to the implementation of
investment strategies and any other activities in connection with management of
each Account’s assets, including furnishing to each Board, within 45 days after
the end of each quarter, a report concerning investment activity during the
quarter; (e) maintain all required accounts, records, memoranda, instructions
or authorizations relating to the acquisition or disposition of investments for
each Account; (f) determine the securities to be purchased or sold by each
Account and place orders either directly with the issuer, with any
broker-dealer or underwriter that specializes in the securities for which the
order is made, or with any other broker or dealer that ALLSTATE INVESTMENTS selects;
and (g) perform the services hereunder in a manner consistent with investment
objectives and policies of 

 

13

 

each Allstate Affiliate as detailed in the respective Investment
Guidelines, as amended from time to time, and in compliance, as
appropriate,  with the applicable  provisions of the insurance laws and
regulations of each Allstate Affiliate’s domicile, as amended and any other
applicable laws.

 

D.            Allocation
of Brokerage.  ALLSTATE INVESTMENTS
is authorized in its sole discretion to select the brokers or dealers that will
execute the purchases and sales of securities for each Account. In making such
selection, ALLSTATE INVESTMENTS shall use its best efforts to obtain for each
Account the most favorable net price and execution available taking into
account all appropriate factors, including price, dealer spread or commission,
if any, and size and difficulty of the transaction. If, in the judgment of
ALLSTATE INVESTMENTS, an Allstate Affiliate would be benefited by supplemental
investment research, ALLSTATE INVESTMENTS is authorized, but not obligated, to
select brokers or dealers on the basis of research information, materials, or
services they could furnish to ALLSTATE INVESTMENTS for potential use in
supplementing ALLSTATE INVESTMENTS’ own information and in making investment
decisions for each Account. The expenses of ALLSTATE INVESTMENTS and the
charges to an Allstate Affiliate may not necessarily be reduced as a result of
receipt of such supplemental information. Subject to the above requirements,
nothing shall prohibit ALLSTATE INVESTMENTS from selecting brokers or dealers
with which it or any Allstate Affiliate is affiliated.

 

E.             Service
to Other Clients.  Each Allstate
Affiliate acknowledges that ALLSTATE INVESTMENTS may perform services for
clients other than the Allstate Affiliates that are similar to the services to
be performed pursuant to this Agreement, and that ALLSTATE INVESTMENTS is free
to do so provided that its services pursuant to this Agreement are not in any
way impaired. Each Allstate Affiliate agrees that ALLSTATE INVESTMENTS may
provide investment advice to any of its other clients that may differ from
advice given to such Allstate Affiliate, or take action with respect to assets owned
by it or its other clients that may differ from the action taken with respect
to any Account and/or assets held therein, so long as ALLSTATE INVESTMENTS, to
the extent reasonable and practicable, allocates investment opportunities to
each Account on a fair and equitable basis relative to ALLSTATE INVESTMENTS’
other clients. It is understood that ALLSTATE INVESTMENTS shall have no
obligation to purchase or sell, or to recommend for purchase or sale for any
Account, any security that ALLSTATE INVESTMENTS, its affiliates, employees or
agents may purchase or sell for its or their own accounts or for the account of
any other client, if, in the opinion of ALLSTATE INVESTMENTS, such transaction
or investment appears unsuitable, impractical or undesirable for such Account. It
is agreed that ALLSTATE INVESTMENTS may use any supplemental investment
research obtained for the benefit of an Allstate Affiliate in providing
investment advice to its other clients or its own accounts. Conversely, such
supplemental information obtained by the placement of business for ALLSTATE
INVESTMENTS or other entities advised by ALLSTATE INVESTMENTS will be
considered by and may be useful to ALLSTATE INVESTMENTS in carrying out its
obligations to each Allstate Affiliate.

 

14

 

F.             Allocation
of Trades.  It is acknowledged that
securities held by an Allstate Affiliate may also be held by separate
investment accounts or other funds for which ALLSTATE INVESTMENTS may act as a
manager. If purchases or sales of securities for an Allstate Affiliate or other
entities for which ALLSTATE INVESTMENTS acts as investment manager arise for
consideration at or about the same time, each such Allstate Affiliate agrees
that ALLSTATE INVESTMENTS may make transactions in such securities, insofar as
feasible, for the respective entities in a manner deemed equitable to all. To
the extent that transactions on behalf of more than one client of ALLSTATE
INVESTMENTS during the same period may increase the demand for securities being
purchased or the supply of securities being sold, each Allstate Affiliate
recognizes that there may be an adverse effect on price.

 

It is agreed that, on occasions when ALLSTATE
INVESTMENTS deems the purchase or sale of a security to be in the best
interests of an Allstate Affiliate as well as other accounts or companies, it
may, to the extent permitted by applicable laws and regulations, but will not
be obligated to, aggregate the securities to be so sold or purchased for such
Allstate Affiliate with those to be sold or purchased for other accounts or
companies in order to obtain favorable execution and lower brokerage
commissions. In that event, allocation of the securities purchased or sold, as
well as the expenses incurred in the transaction, will be made by ALLSTATE
INVESTMENTS in the manner it considers to be most equitable and consistent with
its obligations to such Allstate Affiliate and to such other accounts or
companies. Each Allstate Affiliate recognizes that in some cases this procedure
may adversely affect the size of the position obtainable for such Allstate
Affiliate.

 

G.            Contracts;
Authorized Signatories.  ALLSTATE
INVESTMENTS shall have the full power, right and authority, as each Allstate
Affiliate’s agent, in accordance with this Agreement and the Investment
Guidelines, to negotiate, apply for, enter into, execute, deliver, amend,
modify and/or terminate legal documents of every kind and nature relating to or
required by the investment of the assets of each Account. All such documents
may be entered into in an Allstate Affiliate’s name or in ALLSTATE INVESTMENTS’
name (as agent for such Allstate Affiliate), as ALLSTATE INVESTMENTS shall
determine, and all such documents shall be legally binding on such Allstate
Affiliate. Those certain employees and officers of ALLSTATE INVESTMENTS who are
authorized to execute transactions and sign documentation pursuant to the
Policies and Procedures adopted pursuant to authorization of the ALLSTATE
INVESTMENTS’ Board of Directors, as they may be amended from time to time,
shall also be authorized to the same extent to execute transactions and sign
documentation on behalf of any Allstate Affiliate and/or ALLSTATE INVESTMENTS
in connection with transactions entered into on behalf of the assets of any
Account pursuant to this Agreement.

 

H.            Compliance
with Legal Requirements.  ALLSTATE
INVESTMENTS shall make all reasonable efforts to comply with and cause to be
complied with all applicable laws, rules, and regulations of each Allstate
Affiliate’s domicile, and any federal, state or municipal authority governing
this Agreement, the services rendered 

 

15

 

hereunder, each Account and the assets held therein. Without limiting
the foregoing, ALLSTATE INVESTMENTS shall comply with all securities laws and
other laws applicable to the services provided under this Agreement.

 

I.              Transaction
Procedures.  The assets of each
Account are or will be held in custody by the bank custodian(s) appointed by
each Allstate Affiliate from time to time. ALLSTATE INVESTMENTS shall not act
as custodian for the assets of any Account and shall not, under any
circumstances, have or be deemed to have ownership, custody or physical control
of any of the assets of any Account. ALLSTATE INVESTMENTS may, however, issue
instructions to, and communicate with, the bank custodian for each Account as
may be necessary and appropriate in connection with provision of its services
pursuant to this Agreement. At the option of ALLSTATE INVESTMENTS, instructions
by ALLSTATE INVESTMENTS to the bank custodian may be made orally or by
computer, electronic instruction systems or telecommunications terminals. ALLSTATE
INVESTMENTS will confirm that the bank custodian has effected such instructions
either by access to the bank’s computerized identification system or by
telephonic confirmation. The bank custodian will confirm with ALLSTATE
INVESTMENTS receipt of trade instructions orally or by computer for the Account.
ALLSTATE INVESTMENTS will instruct all brokers, dealers and counterparties
executing orders on behalf of the assets of an Account to forward to ALLSTATE
INVESTMENTS copies of all confirmations.

 

J.             Recordkeeping.  ALLSTATE INVESTMENTS shall keep and
maintain an accurate and detailed accounting of each transaction concerning the
assets of each Account and of all receipts, disbursements, and other
transactions relating to the purchase and sale transactions arising hereunder. ALLSTATE
INVESTMENTS agrees to preserve such records for the greater of (i) six years;
(ii) the required period pursuant to the insurance laws of an Allstate
Affiliate’s domicile and related regulations; or (iii) such other time period
that an Allstate Affiliate may from time to time request. ALLSTATE INVESTMENTS
acknowledges that all such records shall be the property of each Allstate
Affiliate and shall be made available, within five (5) business days of receipt
of a written request, to an Allstate Affiliate, its accountants, auditors or
other representatives of the Allstate Affiliate for inspection and/or copying
(at such Allstate Affiliate’s expense) during regular business hours. In
addition, ALLSTATE INVESTMENTS shall provide any materials, reasonably related
to the investment advisory services provided hereunder, as may be reasonably
requested in writing by the directors or officers of an Allstate Affiliate, or
as may be required by any governmental agency with jurisdiction hereunder.

 

ALLSTATE INVESTMENTS further agrees to prepare and
furnish to each Allstate Affiliate and to other persons designated by such
Allstate Affiliate, at such regular intervals and other times as may be
specified by such Allstate Affiliate from time to time (i) such balance sheets,
income and expense statements and other financial statements and reports, and
(ii) such other statements, reports and information, in each case regarding the
assets of its Account as such Allstate Affiliate shall from time to time
reasonably require.

 

16

 

In the event of termination of this Agreement for any reason, all such
records or copies thereof shall be returned promptly to the respective Allstate
Affiliate, free from any claim or retention of rights by ALLSTATE INVESTMENTS.

 

17Exhibit
10.1

FIRST AMENDMENT TO LEASE

(Expansion
of Premises)

This First
Amendment to Lease (“Amendment”) is
made and entered into as of the 24th day of May, 2007 by and between FPOC, LLC, a
California limited liability company (“Landlord” or “Lessor”), and PowerLight Corporation, a California
corporation (“Tenant” or “Lessee”).

R
E  C  I  T  A  L  S

A.            Landlord and Tenant
entered into that certain Standard Multi-Tenant Industrial Lease – Net dated as
of December 15, 2006 (together with the Addendum thereto, the “Lease”) pursuant to which Tenant leases certain premises
containing approximately 110,522 square feet (the “Existing
Premises”) in that certain commercial building known as Ford Point
(the “Building”) and located at 1414 Harbour
Way South, Richmond, California.

B.            Tenant has exercised
its Right to Expand as to Expansion Space A pursuant to Paragraph 69 of the
Lease.  Tenant has also offered to lease
an additional approximately 12,000 square feet contiguous to Expansion Space A.

C.            Landlord and Tenant
presently desire to amend the Lease to provide for the expansion of the
Existing Premises, as more fully set forth below.

A  G  R  E  E
M  E  N  T

NOW,
THEREFORE, in consideration of the foregoing Recitals and the mutual covenants
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

1.             Defined Terms.  All capitalized terms not defined herein
shall have the same respective meanings as are given such terms in the Lease
unless expressly provided otherwise in this Amendment.

2.             Addition
of Expansion Premises.  The
increment of space consisting of approximately 65,280 square feet and labeled “Expansion Premises” on the attached Exhibit A-1 is
hereby added to the Existing Premises and shall be delivered to Tenant upon
Substantial Completion of the Expansion Premises Improvements (as defined
below).  The parties acknowledge that the
Expansion Premises consists of two elements: 
(i) portion “A” consisting of 53,280 square feet as shown on the
attached Exhibit A-1, and (ii) portion “B” consisting of 12,000 square
feet as shown on Exhibit A-1.  Landlord
and Tenant agree that for the purposes of the Lease and this Amendment, the
Expansion Premises shall be deemed to contain approximately 65,280 square feet
of space, subject to the provisions of Paragraph 72 of the Lease.  As of the date hereof, the Lease shall be
modified to provide that the “Premises” consists of approximately 175,802
square feet (the combined Existing Premises and Expansion Premises shall
hereinafter be referred to as the “Premises”).

 1
 

3.             Improvements
within Expansion Premises.

(a)           The parties acknowledge
that the Expansion Premises has already been improved with two industrial
offices with ventilation and electric heaters. 
Landlord shall improve the Expansion Premises pursuant to the Approved
Expansion Working Drawings as defined below (the “Expansion
Premises Improvements”).  In
performing such work, Landlord shall pay for (i) the installation of Reznor heaters
and ventilation within the Expansion Premises similar to that installed in the
Title 9 space in the Building, (ii) demolishing and relocating the bathrooms
and demising wall within the Expansion Premises, (iii) the relocation of
seismic cabling bracing within the Expansion Premises as reasonably required to
maintain the seismic  stability of the
Building up to a maximum cost of $25,000.00, (iv) the work shown on the
attached Exhibit A-2 (the “Expansion Plans”),
excluding item #6 (floor excavation for dock), (v) the installation of T5HO
lighting fixtures up to a maximum cost of $150 per lighting fixture plus $50
for the installation cost per lighting fixture (with an estimated 130 such
lighting fixtures to be installed in the Expansion Premises), and (vi) all
Standard Base Building Costs as described in Exhibit B-1 of the Lease
with respect to the Expansion Premises. 
Tenant shall pay for: (x) all costs in excess of the costs described in
clauses (iii) and (v) above, and (y) all modifications and upgrades to the Base
Building Standards within the Expansion Premises with a credit for any cost
saved by Landlord from the amounts Landlord would have incurred for Standard
Base Building Costs, all as more specifically described in the Work Letter
attached to the Lease.

(b)           Landlord shall
construct the Expansion Premises Improvements pursuant to the provisions of the
Work Letter attached to the Lease as Exhibit B except that the schedule
for development of the construction drawings shall be as follows:  Within thirty (30) days following the date of
this Amendment, Landlord shall cause to be prepared working drawings (“Expansion Working Drawings”) for the Expansion Premises
Improvements pursuant to the Expansion Plans and deliver the same to Tenant for
its review and approval (which approval shall not be unreasonably withheld,
delayed or conditioned).  Tenant shall
notify Landlord whether it approves of the submitted Expansion Working Drawings
within ten (10) days after the Landlord’s submission thereof.  If Tenant disapproves of such Expansion
Working Drawings, then Tenant shall notify Landlord thereof specifying in
reasonable detail the reasons for such disapproval, in which case Landlord
shall, within five (5) business days after such notice, revise such Expansion
Working Drawings in accordance with Lessee’s reasonable objections and submit
the revised Expansion Working Drawings to Tenant for its review and
approval.  Tenant shall notify Landlord
in writing whether it approves of the resubmitted Expansion Working Drawings
within five (5) business days after its receipt thereof.  This process shall be repeated until the
Expansion Working Drawings have been finally approved by Landlord and Tenant.

(c)           As used herein, “Approved Expansion Working Drawings” shall mean the final Expansion
Working Drawings approved by Landlord and Tenant, as amended from time to time
by any approved changes thereto. 
Landlord shall provide a final copy of the Approved Expansion Working
Drawings to Tenant no later than the date which is twenty (20) days following
the approval of the Approved Expansion Working Drawings by Landlord and
Tenant.  Tenant shall make no changes or
modifications to the Approved Expansion Working Drawings without the prior written
consent of Landlord.  Landlord shall hire
an established general contractor who shall put subcontractors through a
competitive bid process reviewed by Tenant’s 

 2
 

project manager
and such hiring process shall include the general contractor’s ability to meet
Tenant’s reasonable timing and budget requirements.  The Expansion Premises Improvements shall be
performed in compliance with all Applicable Requirements.  Promptly following finalization of the
Approved Expansion Working Drawings, Landlord shall commence and diligently
prosecute to completion the Expansion Premises Improvements.  Landlord shall notify Tenant upon Substantial
Completion of the Expansion Premises Improvements.

(d)           The commencement date
of the Lease for the Expansion Premises shall be September 15, 2007 (the “Expansion Commencement Date”), regardless of whether the
Expansion Premises Improvements have been Substantially Completed by such date.

4.             Base Rent.  To reflect the addition of the Expansion
Premises to the Lease and notwithstanding anything in the Lease to the contrary,
effective as of the Expansion Commencement Date, and continuing thereafter
through the remainder of the Term, Tenant shall pay to Landlord Base Rent in
advance on or before the first day of each calendar month, for the Expansion
Premises, as follows:

	
  Period:

  	
   

  	
  Base Rent Per Month:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  09/15/07 –
  09/30/08

  	
   

  	
  $

  	
  37,209.60

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10/01/08 –
  09/30/09

  	
   

  	
  $

  	
  38,325.89

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10/01/09 –
  09/30/10

  	
   

  	
  $

  	
  39,475.67

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10/01/10 –
  09/30/11

  	
   

  	
  $

  	
  40,659.94

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10/01/11 –
  09/30/12

  	
   

  	
  $

  	
  41,879.74

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10/01/12 –
  09/30/13

  	
   

  	
  $

  	
  43,136.13

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10/01/13 –
  09/30/14

  	
   

  	
  $

  	
  44,430.21

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10/01/14 –
  09/30/15

  	
   

  	
  $

  	
  45,763.12

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10/01/15 –
  09/30/16

  	
   

  	
  $

  	
  47,136.01

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10/01/16 –
  09/30/17

  	
   

  	
  $

  	
  48,550.09

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10/01/17 – 09/30/18

  	
   

  	
  $

  	
  50,006.59

  	
   

  

 

The
initial Base Rent rate is based on $0.57 per square foot of the Expansion
Premises and is subject to three percent (3%) annual increases thereafter.  Concurrently with Tenant’s execution of this
Amendment, Tenant shall deliver to Landlord Base Rent in the amount of $37,209.60
to be credited toward Base Rent due for the first full month following the
Expansion Commencement Date.  The
schedule of rent herein shall be subject to adjustment as provided in the Lease
for the Existing Premises.

5.             Modification
of Tenant’s Share.  To
reflect the addition of the Expansion Premises to the Lease, effective as of
the Expansion Commencement Date, Lessee’s Share shall be 12.63% with respect to
the Expansion Premises.  Tenant’s initial
monthly payment for Common Area Operating Expenses with respect to the
Expansion Premises is $8,486.23. 
Concurrently with Tenant’s execution of this Amendment, Tenant shall pay
to Landlord the 

 3
 

amount of
$8,486.23 representing the monthly installment of Common Area Operating
Expenses due with respect to the Expansion Premises for the first month.

6.             Parking.  To reflect the addition of the Expansion
Premises to the Lease, effective as of the Expansion Commencement Date, Tenant
shall be entitled to an additional thirty-three (33) unreserved parking spaces.

7.             Modifications
to Lease.  As of the date
hereof, the following provisions of the Lease are hereby modified as follows:

(a)           Paragraph
69 (Option to Expand) of the Lease shall be modified by deleting the phrase “January
15, 2007” and substituting the phrase “February 9, 2007” therefore.

(b)           Rule
#20 set forth in the Rules and Regulations attached to the Lease as Exhibit
C is hereby modified by deleting the text of same and substituting the
following language therefore:  “No
animals shall be kept in or about the Premises or permitted therein; provided,
however, that subject to compliance with the Applicable Requirements, Lessee
shall be permitted to have one (1) well-trained companion dog on the Premises
at any one time.  Such dog is to be quiet
and shall not constitute a nuisance to other tenants, occupants or visitors to
the Project.  Lessee shall be responsible
for properly and promptly disposing of all waste from such dog.  If the permitted dog causes a nuisance or
injury to anyone, then Lessor shall have the right to ban such dog from the Premises
forthwith and Lessee shall be solely responsible for all damages resulting from
such nuisance or injury.”

8.             Real
Estate Brokers.  Tenant
and Landlord warrant that they have had no dealings with any broker or agent in
connection with this Amendment, other than BT Commercial (Landlord’s broker)
and CM Realty (Tenant’s broker). 
Landlord shall pay a commission to Landlord’s broker pursuant to a
separate written agreement.  Landlord
covenants to pay, hold harmless and indemnify Tenant from and against any and
all cost, expense or liability for an compensation, commissions or charges
claimed by any other broker or agent utilized by Landlord with respect to this
Amendment or the negotiation hereof. 
Tenant covenants to pay, hold harmless and indemnify Landlord from and
against any and all cost, expense or liability for an compensation, commissions
or charges claimed by any other broker or agent utilized by Tenant with respect
to this Amendment or the negotiation hereof.

9.             Authority.  Tenant and each person executing this
Agreement on behalf of Tenant hereby covenants and warrants that (a) Tenant is
duly organized and validly existing under the laws of the State of California,
(b) Tenant has full power and authority to enter into this Amendment and to
perform all Tenant’s obligations under the Lease, as amended by this Amendment,
and (c) each person (and all of the persons if more than one signs) signing
this Amendment on behalf of Tenant is duly and validly authorized to do so.

10.           No Offer.  Submission of this instrument for examination
and signature by Tenant does not constitute an offer to lease or a reservation
of or option for lease, and this 

 4
 

instrument is not
effective as a lease amendment of otherwise until executed and delivered by
both Landlord and Tenant.

11.           Exhibits.  Exhibit A-1 and Exhibit A-2
attached hereto shall be incorporated into the Lease, as amended hereby.

12.           Lease in
Full Force and Effect. 
This Amendment contains the entire understanding between the parties
with respect to the matters contained herein. 
Tenant hereby affirms to its knowledge that on the date hereof no breach
or default by either party has occurred and that the Lease, and all of its
terms, conditions, covenants, agreements and provisions, except as hereby
modified, are in full force and effect with no defenses or offsets
thereto.  No representations, warranties,
covenants or agreements have been made concerning or affecting the subject
matter of this Amendment, except as are contained herein and in the Lease.  This Amendment may not be changed orally, but
only by an agreement in writing signed by the party against whom enforcement of
any waiver, change or modification or discharge is sought.

IN
WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the
date first set forth above.

	
  LANDLORD:

  	
  TENANT:

  
	
   

  	
   

  
	
  FPOC, LLC,

  	
  PowerLight Corporation,

  
	
  a California
  limited liability company

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Dinwoodie

  	
   

  
	
  By:

  	
  FP Management,
  LLC, a California

  	
  Name:

  	
  Thomas Dinwoodie

  	
   

  
	
   

  	
  Limited
  liability company, its Manager

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J.R. Orton,
  III

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  J.R. Orton, III,
  Manager

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
							

 

 5

Exhibit
A-1

Outline of
Expansion Premises

[see attached]

 

Exhibit
A-2

Expansion Plans
for Expansion Premises Improvements

[see attached]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}]]