{"id":41803,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/2033-gateway-place-san-jose-ca-lease-spieker-properties-lp.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"2033-gateway-place-san-jose-ca-lease-spieker-properties-lp","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/land\/2033-gateway-place-san-jose-ca-lease-spieker-properties-lp.html","title":{"rendered":"2033 Gateway Place (San Jose, CA) Lease &#8211; Spieker Properties LP and Heuristic Physics Laboratories Inc."},"content":{"rendered":"<pre>                             BASIC LEASE INFORMATION\n                                    OFFICE NET\n\n<\/pre>\n<table>\n<s>                                                           <c><br \/>\nLEASE DATE:                                                   August 19, 1998<br \/>\nTENANT:                                                       Heuristic Physics Laboratories, Inc., a California<br \/>\n                                                              corporation<br \/>\nTENANT&#8217;S NOTICE ADDRESS:                                      2033 Gateway Place, Suite 400, San Jose, CA 95110<br \/>\nTENANT&#8217;S BILLING ADDRESS:                                     2033 Gateway Place, Suite 400, San Jose, CA 95110<br \/>\nTENANT CONTACT:  David Y. Lepejian                            PHONE NUMBER: 408-263-1466<br \/>\n                                                              FAX NUMBER:       408-263-1584<br \/>\nLANDLORD:                                                     Spieker Properties, L.P., a California limited partnership<br \/>\nLANDLORD&#8217;S NOTICE ADDRESS:                                    2077 Gateway Place, Suite 100, San Jose, CA 95110<br \/>\nLANDLORD&#8217;S REMITTANCE ADDRESS:                                Spieker Properties, Dept. 11661, P. 0. Box 45587,<br \/>\n                                                              San Francisco, CA 94145-0587<br \/>\nProject Description:                                          San Jose Gateway, San Jose, CA<br \/>\nBuilding Description:                                         Building known as 2033 Gateway Place, San Jose<br \/>\nPremises:                                                     Approximately 12,516 rentable square feet, Suite 400<br \/>\nPermitted Use:                                                General Office and Administrative<br \/>\nOccupancy Density:                                            50 people<br \/>\nParking Density:                                              4\/1000 sq.ft.<br \/>\nScheduled Term Commencement Date:                             November 1, 1998<br \/>\nScheduled Length of Term:                                     84 months<br \/>\nScheduled Term Expiration Date:                               October 31, 2005<br \/>\nRent:<br \/>\n         Base Rent:                                           See Addendum 1 attached hereto and made a part hereof<br \/>\n         Estimated First Year Operating Expenses:             See Addendum 1 attached hereto and made a part hereof<br \/>\nSecurity Deposit:                                             $77,098.00<br \/>\nTenant&#8217;s Proportionate Share:<br \/>\n         Of Building:                                         10.14% of 123,400 total square fed<br \/>\n         Of Project:                                          N\/A<br \/>\n<\/c><\/s><\/table>\n<p>The foregoing Basic Lease Information is incorporated into and made a part of<br \/>\nthis Lease. Each reference in this Lease to any of the Basic Lease Information<br \/>\nshall mean the respective information above and shall be construed to<br \/>\nincorporate all of the terms provided under the particular Lease paragraph<br \/>\npertaining to such information. In the event of any conflict between the Basic<br \/>\nLease Information and the Lease, the latter shall control.<\/p>\n<p>LANDLORD                                   TENANT<\/p>\n<p>Spieker Properties, L.P.,                  Heuristic Physics Laboratories, Inc.<br \/>\na California limited partnership           a California corporation<\/p>\n<p>By:  Spieker Properties, Inc.<br \/>\n        a Maryland corporation,             By:  \/s\/ DAVID Y. LEPEJIAN<br \/>\n        its general partner                      &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n                                                 David Y. Lepejian<br \/>\n                                                 Its: President &amp; CEO<\/p>\n<p>By:  \/s\/ JOSEPH D. RUSSELL, JR.<br \/>\n     &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<br \/>\n     Joseph D. Russell, Jr.<br \/>\n     Its: Regional Senior Vice President<\/p>\n<p>                                TABLE OF CONTENTS<\/p>\n<table>\n                                                                                                               PAGE<br \/>\n<s>                                                                                                             <c><br \/>\n1.    Premises&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.1<br \/>\n2.    Possession and Lease Commencement&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;1<br \/>\n3.    Term&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..2<br \/>\n4.    Use&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;2<br \/>\n5.    Rules and Regulations&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;5<br \/>\n6.    Rent&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..5<br \/>\n7.    Operating Expenses&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;6<br \/>\n8.    Insurance and Indemnification&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;12<br \/>\n9.    Waiver of Subrogation&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..15<br \/>\n10.   Landlord&#8217;s Repairs and Maintenance&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.15<br \/>\n11.   Tenant&#8217;s Repairs and Maintenance&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;16<br \/>\n12.   Alterations&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;16<br \/>\n13.   Signs&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;18<br \/>\n14.   Inspection\/Posting Notices&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;18<br \/>\n15.   Services and Utilities&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.19<br \/>\n16.   Subordination&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.21<br \/>\n17.   Financial Statements&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;22<br \/>\n18.   Estoppel Certificate&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;22<br \/>\n19.   Security Deposit&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.23<br \/>\n20.   Limitation of Tenants Remedies&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..23<br \/>\n21.   Assignment and Subletting&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.24<br \/>\n22.   Authority&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..27<br \/>\n23.   Condemnation&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..27<br \/>\n24.   Casualty Damage&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..28<br \/>\n25.   Holding Over&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..30<br \/>\n26.   Default&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.31<br \/>\n27.   Liens&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;34<br \/>\n28.   Substitution&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..34<br \/>\n29.   Transfers by Landlord&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..35<br \/>\n30.   Right of Landlord to Perform Tenants Covenants&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.35<br \/>\n31.   Waiver&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..35<br \/>\n32.   Notices&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.36<br \/>\n33.   Attorneys&#8217; Fees&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..37<br \/>\n34.   Successors and Assigns&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.37<br \/>\n35.   Force Majeure&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.37<br \/>\n36.   Surrender of Premises&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..37<br \/>\n37.   Parking&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.38<br \/>\n38.   Miscellaneous&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.39<br \/>\n39.   Additional Provisions&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..41<br \/>\n40.   Jury Trial Waiver&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;42<br \/>\n      Signatures&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;.19<br \/>\n      Addendum&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;20<\/p>\n<p>Exhibits:<br \/>\n    Exhibit A&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;Rules and Regulations<br \/>\n    Exhibit B&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..Site Plan, Property Description<br \/>\n    Exhibit C&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;Lease Improvement Agreement<br \/>\n    Additional Exhibits as Required<br \/>\n<\/c><\/s><\/table>\n<p>                                      2<\/p>\n<p>                                      LEASE<\/p>\n<p>         THIS LEASE is made as of the 19th day of August, 1998, by and between<br \/>\nSpieker Properties, L.P., a California limited partnership (hereinafter called<br \/>\n&#8220;Landlord&#8221;), and Heuristic Physics Laboratories, Inc., a California corporation<br \/>\n(hereinafter called &#8220;Tenant&#8221;).<\/p>\n<p>                             1. PREMISES<\/p>\n<p>         Landlord leases to Tenant and Tenant leases from Landlord, upon the<br \/>\nterms and conditions hereinafter set forth, those premises (the &#8220;Premises&#8221;)<br \/>\noutlined in red on Exhibit B and described in the Basic Lease Information. The<br \/>\nPremises shall be all or part of a building (the &#8220;Building&#8221;) and of a project<br \/>\n(the &#8220;Project&#8221;), which may consist of more than one building and additional<br \/>\nfacilities, as described in the Basic Lease Information. The Building and<br \/>\nProject are outlined in blue and green respectively on Exhibit B. Subject to<br \/>\nParagraph 38.E. Landlord and Tenant acknowledge that physical changes may occur<br \/>\nfrom time to time in the Premises, Building or Project, and that the number of<br \/>\nbuildings and additional facilities which constitute the Project may change from<br \/>\ntime to time, which may result in an adjustment in Tenant&#8217;s Proportionate Share,<br \/>\nas defined in the Basic Lease Information, as provided in Paragraph 7.A.<\/p>\n<p>                  2.  POSSESSION AND LEASE COMMENCEMENT<\/p>\n<p>A. CONSTRUCTION OF IMPROVEMENTS. Landlord shall deliver possession of the<br \/>\nPremises to Tenant in broom-clean condition, free of debris and with the roof<br \/>\nin good repair and all electrical, HVAC, plumbing, sewer, water, gas and<br \/>\nother Building systems in good working condition. If during the first thirty<br \/>\n(30) days of the Term, any Building system or the roof is not in the<br \/>\ncondition required hereby or any repair as aforesaid has not been properly<br \/>\ncompleted, Tenant shall notify Landlord in writing during such thirty (30)<br \/>\nday period, of the need for repair, and the repair shall be completed by<br \/>\nLandlord at no cost to Tenant in accordance with Landlord&#8217;s repair obligation<br \/>\nper Paragraph 10 of this Lease, except to the extent that Tenant caused such<br \/>\nneed for repair. If this Lease pertains to a Building to be constructed or<br \/>\nimprovements to be constructed within a Building, the provisions of this<br \/>\nParagraph 2.B. shall apply in lieu of the provisions of Paragraph 2.A. above<br \/>\nand the term commencement date (&#8220;Term Commencement Date&#8221;) shall be the<br \/>\nearlier of the date on which: (1) Tenant takes possession of some or all of<br \/>\nthe Premises; or (2) the improvements to be constructed or performed in the<br \/>\nPremises by Landlord (if any) shall have been substantially completed as<br \/>\ndefined on Exhibit C and Tenant&#8217;s taking of possession of the Premises or any<br \/>\npart thereof shall constitute Tenant&#8217;s confirmation of substantial completion<br \/>\nfor all purposes hereof, whether or not substantial completion of the<br \/>\nBuilding or Project shall have occurred. If for any reason Landlord cannot<br \/>\ndeliver possession of the Premises to Tenant on the scheduled Term<br \/>\nCommencement Date, Landlord shall not be subject to any liability therefor,<br \/>\nnor shall Landlord be in default hereunder nor shall such failure affect the<br \/>\nvalidity of this Lease, and Tenant agrees to accept possession of the<br \/>\nPremises at such time as such improvements have been substantially completed,<br \/>\nas defined in the Lease Improvement Agreement which date shall then be deemed<br \/>\nthe Term Commencement Date. Notwithstanding anything to the contrary<br \/>\ncontained in the preceding sentence, if Landlord has not delivered possession<br \/>\nof the Premises to Tenant through no fault of Tenant and in the absence of<br \/>\nforce majeure, with the Tenant Improvements substantially completed, by April<br \/>\n1, 1999, Tenant shall have the right to terminate this Lease and to receive a<br \/>\nrefund of all monies previously tendered by Landlord which right Tenant must<br \/>\nexercise in writing prior to April 15, 1999. In the event Tenant fails to<br \/>\nexercise its right pursuant to this paragraph, Tenant shall have waived its<br \/>\nright to terminate this Lease. Tenant shall not be liable for any Rent for<br \/>\nany period prior to the Term Commencement Date (but without affecting any<br \/>\nobligations of Tenant under any improvement agreement appended to this<br \/>\nLease). In the event of any dispute as to substantial completion of work<br \/>\nperformed or required to be performed by Landlord, the certificate of<br \/>\nLandlord&#8217;s architect or general contractor shall be conclusive. Substantial<br \/>\ncompletion shall have occurred notwithstanding Tenant&#8217;s submission of a<br \/>\npunchlist to Landlord, which Tenant shall submit, if at all, within ten (10)<br \/>\nbusiness days after the Term Commencement Date or otherwise in accordance<br \/>\nwith any improvement agreement appended to this Lease. Upon Landlord&#8217;s<br \/>\nrequest, following substantial completion, Tenant shall promptly execute and<br \/>\nreturn to Landlord a &#8220;Start-Up Letter&#8221; in which Tenant shall agree, among<br \/>\nother things, to acceptance of the Premises and to the determination of the<br \/>\nTerm Commencement Date, in accordance with the terms of this Lease but<br \/>\nTenant&#8217;s failure or refusal to do so shall not negate Tenant&#8217;s acceptance of<br \/>\nthe Premises or affect determination of the Term Commencement Date.<\/p>\n<p>                                  3.  TERM<\/p>\n<p>         The term of this Lease (the &#8220;Term&#8221;) shall commence on the Term<br \/>\nCommencement Date and continue in full force and effect for the number of<br \/>\nmonths specified as the Length of Term in the Basic Lease Information or<br \/>\nuntil this Lease is terminated as otherwise provided herein. If the Term<br \/>\nCommencement Date is a date other than the first day of the calendar month,<br \/>\nthe Term shall be the number of months of the Length of Term in addition to<br \/>\nthe remainder of the calendar month following the Term Commencement Date.<br \/>\nLandlord agrees to permit Tenant to have access to the premises fourteen (14)<br \/>\ndays prior to the Commencement Date for purposes of installing its telephone<br \/>\nand computer cabling, with all terms and conditions of the Lease in full<br \/>\nforce and effect, except payment of Base Rent.<\/p>\n<p>                                  4.  USE<\/p>\n<p>A. GENERAL. Tenant shall use the Premises for the permitted use specified in the<br \/>\nBasic Lease Information (&#8220;Permitted Use&#8221;) and for no other use or purpose.<br \/>\nTenant shall control Tenant&#8217;s employees, agents, customers, visitors, invitees,<br \/>\nlicensees, contractors, assignees and subtenants (collectively, &#8220;Tenant&#8217;s<br \/>\nParties&#8221;) in such a manner that Tenant and Tenant&#8217;s Parties cumulatively do not<br \/>\nexceed the occupant density (the &#8220;Occupancy Density&#8221;) or the parking density<br \/>\n(the &#8220;Parking Density&#8221;) specified in the Basic Lease Information<\/p>\n<p>                                      3<\/p>\n<p>at any time. So long as Tenant is occupying the Premises, Tenant and Tenant&#8217;s<br \/>\nParties shall have the nonexclusive right to use, in common with other<br \/>\nparties occupying the Building or Project, the parking areas, driveways and<br \/>\nother common areas of the Building and Project, subject to the terms of this<br \/>\nLease and such reasonable rules and regulations as Landlord may from time to<br \/>\ntime prescribe. Landlord reserves the right, without notice or liability to<br \/>\nTenant, and without the same constituting an actual or constructive eviction,<br \/>\nto alter or modify the common areas from time to time, including the location<br \/>\nand configuration thereof, and the amenities and facilities which Landlord<br \/>\nmay determine to provide from time to time.<\/p>\n<p>B. LIMITATIONS. Tenant shall not permit any odors, smoke, dust, gas, substances,<br \/>\nnoise or vibrations to emanate from the Premises or from any portion of the<br \/>\ncommon area as a result of Tenant&#8217;s or any Tenant&#8217;s Party&#8217;s use thereof, nor<br \/>\ntake any action which would constitute a nuisance or would unreasonably disturb,<br \/>\nobstruct or endanger any other tenants or occupants of the Building or Project<br \/>\nor elsewhere, or interfere with their use of their respective premises or common<br \/>\narea. Storage outside the Premises of materials, vehicles or any other items is<br \/>\nprohibited. Tenant shall not use or allow the Premises to be used for any<br \/>\nimmoral, improper or unlawful purpose, nor shall Tenant cause or maintain or<br \/>\npermit any nuisance in, on or about the Premises. Tenant shall not commit or<br \/>\nsuffer the commission of any waste in, on or about the Premises. Tenant shall<br \/>\nnot allow any sale by auction upon the Premises, or place any loads upon the<br \/>\nfloors, walls or ceilings which could endanger the structure, or place any<br \/>\nharmful substances in the drainage system of the Building or Project. No waste,<br \/>\nmaterials or refuse shall be dumped upon or permitted to remain outside the<br \/>\nPromises. Landlord shall not be responsible to Tenant for the non-compliance by<br \/>\nany other tenant or occupant of the Building or Project with any of the<br \/>\nabove-referenced rules or any other terms or provisions of such tenant&#8217;s or<br \/>\noccupant&#8217;s lease or other contract.<\/p>\n<p>C. COMPLIANCE WITH REGULATIONS. Subject to the other provisions of the Lease, by<br \/>\nentering the Premises to take possession, Tenant accepts the Premises in the<br \/>\ncondition existing as of the date of such entry. Tenant shall at its sole cost<br \/>\nand expense strictly comply with all existing or future applicable municipal,<br \/>\nstate and federal and other governmental statutes, rules, requirements,<br \/>\nregulations, laws and ordinances, including zoning ordinances and regulations,<br \/>\nand covenants, easements and restrictions of record governing and relating to<br \/>\nTenant&#8217;s and Tenant&#8217;s Parties&#8217; use, occupancy or possession of the Premises, to<br \/>\nTenant&#8217;s use of the common areas, or to Tenant&#8217;s and Tenant&#8217;s Parties&#8217; use,<br \/>\nstorage, generation or disposal of Hazardous Materials (hereinafter defined)<br \/>\n(collectively &#8220;Regulations&#8221;). Tenant shall at its sole cost and expense obtain<br \/>\nany and all licenses or permits necessary for Tenant&#8217;s use of the Premises.<br \/>\nTenant shall at its sole cost and expense promptly comply with the requirements<br \/>\nof any board of fire underwriters or other similar body now or hereafter<br \/>\nconstituted. Tenant shall not do or permit anything to be done in, on, under or<br \/>\nabout the Project or bring or keep anything which will in any way increase the<br \/>\nrate of any insurance upon the Premises, Building or Project or upon any<br \/>\ncontents therein or cause a cancellation of said insurance or otherwise affect<br \/>\nsaid insurance in any manner. Tenant shall indemnify, defend (by counsel<br \/>\nreasonably acceptable to Landlord), protect and hold Landlord harmless from and<br \/>\nagainst any loss, cost, expense, damage, attorneys&#8217; fees or liability arising<br \/>\nout of the failure of Tenant to comply with any Regulation. Tenant&#8217;s obligations<br \/>\npursuant to the foregoing indemnity shall survive the expiration or earlier<br \/>\ntermination of this Lease.<\/p>\n<p>D. HAZARDOUS MATERIALS. As used in this Lease, &#8220;Hazardous Materials&#8221; shall<br \/>\ninclude, but not be limited to, hazardous, toxic and radioactive materials<br \/>\nand those substances defined as &#8220;hazardous substances,&#8221; &#8220;hazardous<br \/>\nmaterials,&#8221; &#8220;hazardous wastes&#8221; &#8220;toxic substances,&#8221; or other similar<br \/>\ndesignations in any Regulation. Tenant shall not cause, or allow any of<br \/>\nTenant&#8217;s Parties to cause, any Hazardous Materials to be handled, used,<br \/>\ngenerated, stored, released or disposed of in, on, under or about the<br \/>\nPremises, the Building or the Project or surrounding land or environment in<br \/>\nviolation of any Regulations. Tenant must obtain Landlord&#8217;s written consent<br \/>\nprior to the introduction of any Hazardous Materials onto the Project.<br \/>\nNotwithstanding the foregoing, Tenant may handle, store, use and dispose of<br \/>\nproducts containing small quantities of Hazardous Materials for &#8220;general<br \/>\noffice purposes&#8221; (such as toner for copiers) to the extent customary and<br \/>\nnecessary for the Permitted Use of the Premises; provided that Tenant shall<br \/>\nalways handle, store, use, and dispose of any such Hazardous Materials in a<br \/>\nsafe and lawful manner and never allow such Hazardous Materials to<br \/>\ncontaminate the Premises, Building, or Project or surrounding land or<br \/>\nenvironment. Tenant shall immediately notify Landlord in writing of any<br \/>\nHazardous Materials&#8217; contamination of any portion of the Project of which<br \/>\nTenant becomes aware, whether or not caused by Tenant. Landlord shall have<br \/>\nthe right at all reasonable times to inspect the Premises and to conduct<br \/>\ntests and investigations to determine whether Tenant is in compliance with<br \/>\nthe foregoing provisions, the costs of all such inspections, tests and<br \/>\ninvestigations to be borne by Tenant if Landlord has reasonable grounds to<br \/>\nbelieve that Tenant is in violation of the foregoing provisions of this<br \/>\nParagraph 4D. Tenant shall indemnify, defend (by counsel reasonably<br \/>\nacceptable to Landlord), protect and hold Landlord harmless from and against<br \/>\nany and all claims, liabilities, losses, costs, loss of rents, liens,<br \/>\ndamages, injuries or expenses (including attorneys&#8217; and consultants&#8217; fees and<br \/>\ncourt costs), demands, causes of action, or judgments directly or indirectly<br \/>\narising out of or related to the use, generation, storage, release, or<br \/>\ndisposal of Hazardous Materials by Tenant or any of Tenant&#8217;s Parties in, on,<br \/>\nunder or about the Premises, the Building or the Project or surrounding land<br \/>\nor environment, which indemnity shall include, without limitation, damages<br \/>\nfor personal or bodily injury, property damage, damage to the environment or<br \/>\nnatural resources occurring on or off the premises, losses attributable to<br \/>\ndiminution in value or adverse effects on marketability, the cost of any<br \/>\ninvestigation, monitoring, government oversight, repair, removal,<br \/>\nremediation, restoration, abatement, and disposal, and the preparation of any<br \/>\nclosure or other required plans, whether such action is required or necessary<br \/>\nprior to or following the expiration or earlier termination of this Lease.<br \/>\nNeither the consent by Landlord to the use, generation, storage, release or<br \/>\ndisposal of Hazardous Materials nor the strict compliance by Tenant with all<br \/>\nlaws pertaining to Hazardous Materials shall excuse Tenant from Tenant&#8217;s<br \/>\nobligation of indemnification pursuant to this Paragraph 4.D. Tenant&#8217;s<br \/>\nobligations pursuant to the foregoing indemnity shall survive the expiration<br \/>\nor earlier termination of this Lease.<\/p>\n<p>         Landlord shall indemnify, defend and hold Tenant, its affiliates, their<br \/>\nrespective directors, officers, employees and agents harmless from and against<br \/>\nany and all claims, penalties, fines, costs, liabilities or losses and<br \/>\nattorneys&#8217; fees arising out of any Hazardous Material in, on or about the<br \/>\nProject or the Premises which was created, handled, placed, stored, used,<br \/>\ntransported or disposed of by Landlord, excluding, however, any Hazardous<br \/>\nMaterial whose presence was caused by Tenant or its affiliates or their<br \/>\nrespective agents.<\/p>\n<p>                            5.  RULES AND REGULATIONS<\/p>\n<p>         Tenant shall faithfully observe and comply with the building rules and<br \/>\nregulations attached hereto as Exhibit A and any other reasonable rules and<br \/>\nregulations and any modifications or additions thereto which Landlord may from<br \/>\ntime to time prescribe in writing for the purpose of maintaining the proper<br \/>\ncare, cleanliness, safety, traffic flow and general order of the premises or the<br \/>\nBuilding or Project. Tenant shall cause Tenant&#8217;s Parties to comply with such<br \/>\nrules and regulations. Landlord shall not be responsible to Tenant for the<br \/>\nnon-compliance by any other tenant or occupant of the Building or project with<br \/>\nany of such rules and regulations, any other tenant&#8217;s or occupant&#8217;s lease or any<br \/>\nRegulations. Landlord shall enforce the rules and regulations in a<br \/>\nnon-discriminatory manner.<\/p>\n<p>                                  6.  RENT<\/p>\n<p>A. BASE RENT. Tenant shall pay to Landlord and Landlord shall receive, without<br \/>\nnotice or demand throughout the Term, Base Rent as specified in the Basic Lease<br \/>\nInformation, payable in monthly installments in advance on or before the first<br \/>\nday of each calendar month, in lawful money of the United States, without<br \/>\ndeduction or offset whatsoever, at the Remittance Address specified in the Basic<br \/>\nLease Information or to such other place as Landlord may from time to time<br \/>\ndesignate in writing. If the obligation for payment of Base Rent commences on a<br \/>\nday other than<\/p>\n<p>                                      4<\/p>\n<p>the first day of a month, then Base Rent shall be prorated and the prorated<br \/>\ninstallment shall be paid on the first day of the calendar month next<br \/>\nsucceeding the Term Commencement Date. The Base Rent payable by Tenant<br \/>\nhereunder is subject to adjustment as provided elsewhere in this Lease, as<br \/>\napplicable. As used herein, the term &#8220;Base Rent&#8221; shall mean the Base Rent<br \/>\nspecified in the Basic Lease Information as it may be so adjusted from time<br \/>\nto time.<\/p>\n<p>B. ADDITIONAL RENT. All monies other than Base Rent required to be paid by<br \/>\nTenant hereunder, including. but not limited to. Tenant&#8217;s Proportionate Share of<br \/>\nOperating Expenses, as specified in Paragraph 7 of this Lease, charges to be<br \/>\npaid by Tenant under Paragraph 15, the interest and late charge described in<br \/>\nParagraphs 26.C. and D., and any monies spent by Landlord pursuant to Paragraph<br \/>\n30, shall be considered additional rent (&#8220;Additional Rent&#8221;). &#8220;Rent&#8221; shall mean<br \/>\nBase Rent and Additional Rent.<\/p>\n<p>                             7.  OPERATING EXPENSES<\/p>\n<p>A. OPERATING EXPENSES. In addition to the Base Rent required to be paid<br \/>\nhereunder, Tenant shall pay as Additional Rent, Tenant&#8217;s Proportionate Share<br \/>\nof the Building and\/or Project (as applicable), as defined in the Basic Lease<br \/>\nInformation, of Operating Expenses (defined below) in the manner set forth<br \/>\nbelow. Tenant shall pay the applicable Tenant&#8217;s Proportionate Share of each<br \/>\nsuch Operating Expenses. Subject to Paragraph 38.E., Landlord and Tenant<br \/>\nacknowledge that if the number of buildings which constitute the Project<br \/>\nincreases or decreases, or if physical changes are made to the Premises,<br \/>\nBuilding or Project or the configuration of any thereof, Landlord may at its<br \/>\ndiscretion reasonably adjust Tenant&#8217;s Proportionate Share of the Building or<br \/>\nProject to reflect the change. Landlord&#8217;s determination of Tenant&#8217;s<br \/>\nProportionate Share of the Building and of the Project shall be conclusive so<br \/>\nlong as it is reasonably and consistently applied. &#8220;Operating Expenses&#8221; shall<br \/>\nmean all expenses and costs of every kind and nature which Landlord shall pay<br \/>\nor become obligated to pay, because of or in connection with the ownership,<br \/>\nmanagement, maintenance, repair, preservation. replacement and operation of<br \/>\nthe Building or Project and its supporting facilities and such additional<br \/>\nfacilities now and in subsequent years as may be determined by Landlord to be<br \/>\nnecessary or desirable to the Building and\/or Project (as determined in a<br \/>\nreasonable manner) other than those expenses and costs which are specifically<br \/>\nattributable to Tenant or which are expressly made the financial<br \/>\nresponsibility of Landlord or specific tenants of the Building or Project<br \/>\npursuant to this Lease. Operating Expenses shall include, but are not limited<br \/>\nto, the following:<\/p>\n<p>     (1) TAXES. All real property taxes and assessments, possessory interest<br \/>\n     taxes, sales taxes, personal property taxes, business or license taxes<br \/>\n     or fees, gross receipts taxes, service payments in lieu of such taxes or<br \/>\n     fees, annual or periodic license or use fees. excises, transit charges,<br \/>\n     and other impositions, general and special, ordinary and extraordinary,<br \/>\n     unforeseen as well as foreseen, of any kind (including fees &#8220;in-lieu&#8221; of<br \/>\n     any such tax or assessment) which we now or hereafter assessed, levied,<br \/>\n     charged, confirmed, or imposed by any public authority upon the Building<br \/>\n     or Project, its operations or the Rent (or any portion or component<br \/>\n     thereof), or any tax, assessment or fee imposed in substitution,<br \/>\n     partially or totally, of any of the above. Operating Expenses shall also<br \/>\n     include any taxes, assessments, reassessments, or other fees or<br \/>\n     impositions with respect to the development. leasing, management,<br \/>\n     maintenance, alteration, repair, use or occupancy of the Premises.<br \/>\n     Building or Project or any portion thereof, including, without<br \/>\n     limitation, by or for Tenant, and all increases therein or reassessments<br \/>\n     thereof whether the increases or reassessments result from increased<br \/>\n     rate and\/or valuation (whether upon a transfer of the Building or<br \/>\n     Project or any portion thereof or any interest therein or for any other<br \/>\n     reason). Operating Expenses shall not include inheritance or estate<br \/>\n     taxes imposed upon or assessed against the interest of any person in the<br \/>\n     Project, or taxes computed upon the basis of the net income of any<br \/>\n     owners of any interest in the Project. If it shall not be lawful for<br \/>\n     Tenant to reimburse Landlord for all or any part of such taxes, the<br \/>\n     monthly rental payable to Landlord under this Lease shall be revised to<br \/>\n     net Landlord the same net rental after imposition of any such taxes by<br \/>\n     Landlord as would have been payable to Landlord prior to the payment of<br \/>\n     any such taxes.<\/p>\n<p>     (2) INSURANCE. All insurance premiums and costs, including, but not<br \/>\n     limited to, any deductible amounts, premiums and other costs of<br \/>\n     insurance incurred by Landlord, including for the insurance coverage set<br \/>\n     forth in Paragraph 8.A. herein.<\/p>\n<p>     (3) COMMON AREA MAINTENANCE.<\/p>\n<p>          (a) Repairs, replacements, and general maintenance of and for the<br \/>\n          Building and Project and public and common areas and facilities of<br \/>\n          and comprising the Building and Project, including, but not limited<br \/>\n          to, the roof and roof membrane, windows, elevators, restrooms,<br \/>\n          conference rooms, health club facilities, lobbies, mezzanines,<br \/>\n          balconies, mechanical rooms, building exteriors, alarm systems,<br \/>\n          pest extermination, landscaped areas parking and service areas,<br \/>\n          driveways, sidewalks, loading areas, fire sprinkler systems,<br \/>\n          sanitary and storm sewer lines, utility services,<br \/>\n          heating\/ventilation\/air conditioning systems, electrical,<br \/>\n          mechanical or other systems, telephone equipment and wiring<br \/>\n          servicing, plumbing, lighting, and any other item or areas which<br \/>\n          affect the operation or appearance of the Building or Project,<br \/>\n          which determination shall be at Landlord&#8217;s discretion. except for:<br \/>\n          those items expressly made the financial responsibility of Landlord<br \/>\n          pursuant to Paragraph 10 hereof; those items to the extent paid for<br \/>\n          by the proceeds of insurance; and those items attributable solely<br \/>\n          or jointly to specific tenants of the Building or Project.<\/p>\n<p>          (b) Repairs, replacements, and general maintenance shall include<br \/>\n          the cost of any capital improvements made to or capital assets<br \/>\n          acquired for the Project or Building that in Landlord&#8217;s discretion<br \/>\n          may reduce any other Operating Expenses, including present or<br \/>\n          future repair work, are reasonably necessary for the health and<br \/>\n          safety of the occupants of the Building or Project, or are required<br \/>\n          to comply with any Regulation, such costs or allocable portions<br \/>\n          thereof to be amortized over such reasonable period as Landlord<br \/>\n          shall determine, together with interest on the unamortized balance<br \/>\n          at the publicly announced &#8220;prime rate&#8221; charged by Wells Fargo Bank,<br \/>\n          NA. (San Francisco) or its successor at the time such improvements<br \/>\n          or capital asset are constructed or acquired, plus two (2)<br \/>\n          percentage points, or in the absence of such prime rate, then at<br \/>\n          the U.S. Treasury six-month market note (or bond, if so designated)<br \/>\n          rate as published by any national financial publication selected by<br \/>\n          Landlord, plus four (4) percentage points, but in no event more<br \/>\n          than the maximum rate permitted by law, plus reasonable financing<br \/>\n          charges.<\/p>\n<p>          (c) Payment under or for any easement, license, permit, operating<br \/>\n          agreement, declaration, restrictive covenant or instrument relating<br \/>\n          to the Building or Project.<\/p>\n<p>          (d) All expenses and rental related to services and costs of<br \/>\n          supplies, materials and equipment used in operating, managing and<br \/>\n          maintaining the Premises, Building and Project, the equipment<br \/>\n          therein and the adjacent sidewalks, driveways, parking and service<br \/>\n          areas, including, without limitation, expenses related to service<br \/>\n          agreements regarding security, fire and other alarm systems,<br \/>\n          janitorial services, window cleaning, elevator maintenance,<br \/>\n          building exterior maintenance, landscaping and expenses related to<br \/>\n          the administration, management and operation of the Project,<br \/>\n          including without limitation salaries, wages and benefits and<br \/>\n          management office rent.<\/p>\n<p>          (e) The cost of supplying any services and utilities which benefit<br \/>\n          all or a portion of the Premises, Building or Project, including<br \/>\n          without limitation services and utilities provided pursuant to<br \/>\n          Paragraph 15 hereof.<\/p>\n<p>                                      5<\/p>\n<p>          (f) Legal expenses and the cost of audits by certified public<br \/>\n          accountants; provided, however, that legal expenses chargeable as<br \/>\n          Operating Expenses shall not include the cost of negotiating<br \/>\n          leases, collecting rents, evicting tenants nor shall it include<br \/>\n          costs incurred in legal proceedings with or against any tenant or<br \/>\n          to enforce the provisions of any lease.<\/p>\n<p>          (g) A management and accounting cost recovery fee equal to five<br \/>\n          percent (50\/6) of the sum of the Project&#8217;s base rents and Operating<br \/>\n          Expenses (other than such management and accounting fee).<\/p>\n<p>     If the rentable area of the Building and\/or Project is not fully<br \/>\noccupied during any fiscal year of the Term as determined by Landlord, an<br \/>\nadjustment shall be made in Landlord&#8217;s discretion in computing the Operating<br \/>\nExpenses for such year so that Operating Expenses shall be computed as though<br \/>\nthe Building had been one hundred percent (100%) occupied. Tenant pays an<br \/>\nequitable portion of all variable items (e.g., utilities, janitorial services<br \/>\nand other component expenses at are affected by variations in occupancy<br \/>\nlevels) of Operating Expenses, as reasonably determined by Landlord;<br \/>\nprovided, however, that in no event shall Landlord be entitled to collect in<br \/>\nexcess of one hundred percent (1001%) of the total Operating Expenses from<br \/>\nall of the tenants in the Building or Project, as the case may be.<\/p>\n<p>     Operating Expenses shall not include the cost of providing tenant<br \/>\nimprovements or other specific costs incurred for the account of, separately<br \/>\nbilled to and paid by specific tenants of the Building or Project, the<br \/>\ninitial construction cost of the Building, or debt service on any mortgage or<br \/>\ndead of trust recorded with respect to the Project other than pursuant to<br \/>\nParagraph 7.A.(3)(b) above. Notwithstanding anything herein to the contrary,<br \/>\nin any instance wherein Landlord, in Landlord&#8217;s sole discretion, deems Tenant<br \/>\nto be responsible for any amounts greater than Tenant&#8217;s Proportionate Share,<br \/>\nLandlord shall have the right to allocate costs in any manner Landlord<br \/>\nreasonably deems appropriate.<\/p>\n<p>     Notwithstanding anything in the definition of Operating, Expenses in<br \/>\nthis Lease to the contrary, Operating Expenses shall not include the<br \/>\nfollowing, except to the extent specifically permitted by a specific<br \/>\nexception to the following:<\/p>\n<p>          (i) Any ground lease rental;<\/p>\n<p>          (ii) Costs of capital improvements, replacements or equipment and<br \/>\nany depreciation or amortization expenses thereon, except as specifically set<br \/>\nforth in the definition of Operating Expenses in Paragraph 7.A of the Lease;<\/p>\n<p>          (iii) Rentals for items (except when needed in connection with<br \/>\nnormal repairs and maintenance of permanent systems) which if purchased,<br \/>\nrather than rented. would constitute a capital improvement which is<br \/>\nspecifically excluded in Subsection (ii) above (excluding, however, equipment<br \/>\nnot affixed to the Building or Project which is used in providing janitorial<br \/>\nor similar services);<\/p>\n<p>          (iv) Costs incurred by Landlord for the repair of damage to the<br \/>\nBuilding or Project. to the extent that Landlord is reimbursed by insurance<br \/>\nproceeds;<\/p>\n<p>          (v) Costs, including permit, license and inspection costs. incurred<br \/>\nwith respect to the installation of tenant or other occupant improvements<br \/>\nmade for tenants or other occupants in the Building or the Project or<br \/>\nincurred in renovating or otherwise improving, decorating, painting or<br \/>\nredecorating vacant space for or the premises of other tenants or other<br \/>\noccupants of the Building;<\/p>\n<p>          (vi) Marketing costs, including leasing commissions, attorneys&#8217;<br \/>\nfees in connection with the negotiation and preparation of letters, deal<br \/>\nmemos, letters of intent, leases, subleases and\/or assignments, space<br \/>\nplanning costs, and other costs and expenses incurred in connection with<br \/>\nlease, sublease and\/or assignment negotiations and transactions with present<br \/>\nor Prospective tenants or other occupants of the Building or the Project;<\/p>\n<p>          (vii) Costs incurred by Landlord due to the violation by Landlord<br \/>\nof the terms and conditions of any lease of space in the Building or the<br \/>\nProject;<\/p>\n<p>          (viii) Interest, principal, points and fees on debt or amortization<br \/>\npayments on any mortgage or dead of trust or any other debt instrument<br \/>\nencumbering the Building or Project or the land on which the Building or<br \/>\nProject is situated;<\/p>\n<p>          (ix) Except for making repairs or keeping permanent systems in<br \/>\noperation while repairs are being made, rentals and other related expenses<br \/>\nincurred in leasing air conditioning systems, elevators or other equipment<br \/>\nordinarily considered to be of a capital nature, except equipment not affixed<br \/>\nto the Building which is used in providing janitorial or similar services;<\/p>\n<p>          (x) Advertising and promotional expenditures (except for retail<br \/>\nproperty promotions);<\/p>\n<p>          (xi) Costs incurred in connection with upgrading the Building or<br \/>\nProject to comply with disability, life, fire and safety codes in effect<br \/>\nprior to the issuance of the temporary certificate of occupancy for the<br \/>\nBuilding;<\/p>\n<p>          (xii) Interest, fines or penalties incurred as a result of<br \/>\nLandlord&#8217;s failure to make payments when due unless such failure is<br \/>\ncommercially reasonable under the circumstances;<\/p>\n<p>          (xiii) Costs arising from Landlord&#8217;s charitable or political<br \/>\ncontributions;<\/p>\n<p>          (xiv) Costs for acquisition of sculpture, paintings or other<br \/>\nobjects of art in common areas;<\/p>\n<p>          (xv) The depreciation of the Building and other real property<br \/>\nstructures in the Project;<\/p>\n<p>          (xvi) Landlord&#8217;s general corporate overhead and general<br \/>\nadministrative expenses not related to the operation of the Project, except<br \/>\nas specifically set forth in Paragraph 7.A;<\/p>\n<p>          (xvii) Any bad debt loss, rent loss or reserves for b ad debts or<br \/>\nrent loss, or reserves for equipment or capital replacement;<\/p>\n<p>                                      6<\/p>\n<p>     The above enumeration of services and facilities shall not be deemed to<br \/>\nimpose an obligation on Landlord to make available or provide such services<br \/>\nor facilities except to the extent if any that Landlord has specifically<br \/>\nagreed elsewhere in this Lease to make the same available or provide the<br \/>\nsame. Without limiting the generality of the foregoing. Tenant acknowledges<br \/>\nand agrees that it shall be responsible for providing adequate security for<br \/>\nits use of the Premises, the Building and the Project and that Landlord shall<br \/>\nhave no obligation or liability with respect thereto except to the extent if<br \/>\nthat Landlord provide the same.<\/p>\n<p>B. PAYMENT OF ESTIMATED OPERATING EXPENSES. Estimated Operating Expenses&#8221; for<br \/>\nany particular year shall mean Landlord&#8217;s estimate of the Operating Expenses for<br \/>\nsuch fiscal year made with respect to such fiscal year as hereinafter provided.<br \/>\nLandlord shall have the right from time to time to revise its fiscal year and<br \/>\ninterim accounting periods so long as the periods as so revised are reconciled<br \/>\nwith prior periods in a reasonable manner. During the last month of each fiscal<br \/>\nyear during the Term, or as soon thereafter as practicable, Landlord shall give<br \/>\nTenant written notice of the Estimated Operating Expenses for the ensuing fiscal<br \/>\nyear. Tenant shall pay Tenant&#8217;s Proportionate Share of the Estimated Operating<br \/>\nExpenses with installments of Base Rent for the fiscal year to which the<br \/>\nEstimated Operating Expenses applies in monthly installments on the first day of<br \/>\neach calendar month during such year, in advance. Such payment shall be<br \/>\nconstrued to be Additional Rent for all purposes hereunder. If at any time<br \/>\nduring the course of the fiscal year, Landlord determines that Operating<br \/>\nExpenses are projected to vary from the then Estimated Operating Expenses by<br \/>\nmore than five percent (5%). Landlord may, by written notice to Tenant, revise<br \/>\nthe Estimated Operating Expenses for the balance of such fiscal year, and<br \/>\nTenant&#8217;s monthly installments for the remainder of such year shall be adjusted<br \/>\nso that by the end of such fiscal year Tenant has paid to Landlord Tenant&#8217;s<br \/>\nProportionate Share of the revised Estimated Operating Expenses for such year,<br \/>\nsuch Additional Rent for all purposes hereunder.<\/p>\n<p>C. COMPUTATION OF OPERATING EXPENSE ADJUSTMENT. &#8220;Operating Expense Adjustment&#8221;<br \/>\n&#8220;I mean the difference between Estimated Operating Expenses and actual Operating<br \/>\nExpenses for any fiscal year determined as hereinafter provided. Within one<br \/>\nhundred twenty (120) days after the end of each fiscal year, or as soon<br \/>\nthereafter as practicable, Landlord shall deliver to Tenant a statement of<br \/>\nactual Operating Expenses for the fiscal year just ended, accompanied by a<br \/>\ncomputation of Operating Expense Adjustment. If such statement shows that<br \/>\nTenant&#8217;s payment based upon Estimated Operating Expenses is less than Tenant&#8217;s<br \/>\nProportionate Share of Operating Expenses, then Tenant shall pay to Landlord the<br \/>\ndifference within twenty (20) days after receipt of such statement, such payment<br \/>\nto constitute Additional Rent for all purposes hereunder. If such statement<br \/>\nshows that Tenant&#8217;s payments of Estimated Operating Expenses exceed Tenant&#8217;s<br \/>\nProportionate Share of Operating Expenses, then (provided that Tenant is not in<br \/>\ndefault under this Lease) Landlord shall pay to Tenant the difference within<br \/>\ntwenty (20) days after delivery of such statement to Tenant. If this Lease has<br \/>\nbeen terminated or the Term hereof has expired prior to the date of such<br \/>\nstatement, then the Operating Expense Adjustment shall be paid by the<br \/>\nappropriate party within twenty (20) days after the date of delivery of the<br \/>\nstatement. Should this Lease commence or terminate at any time other than the<br \/>\nfirst day of the fiscal year, Tenant&#8217;s Proportionate Share of the Operating<br \/>\nExpense Adjustment shall be prorated based on a month of 30 days and the number<br \/>\nof calendar months during such fiscal year that this Lease is in effect.<br \/>\nNotwithstanding anything to the contrary contained in Paragraph 7.A or 7.B,<br \/>\nLandlord&#8217;s failure to provide any notices or statements within the time periods<br \/>\nspecified in those paragraphs shall in no way excuse Tenant from its obligation<br \/>\nto pay Tenant&#8217;s Proportionate Share of Operating Expenses.<\/p>\n<p>D. NET LEASE. This shall be a triple net Lease and Base Rent shall be paid to<br \/>\nLandlord absolutely net of all costs and expenses, except as specifically<br \/>\nprovided to the contrary in this Lease. The provisions for payment of Operating<br \/>\nExpenses and the Operating Expense Adjustment are intended to pass on to Tenant<br \/>\nand reimburse Landlord for all costs and expenses of the nature described in<br \/>\nParagraph 7.A. incurred in connection with the ownership, management,<br \/>\nmaintenance, repair, preservation, replacement and operation of the Building<br \/>\nand\/or Project and its supporting facilities and such additional facilities now<br \/>\nand in subsequent years as may be determined by Landlord to be necessary or<br \/>\ndesirable to the Building and\/or Project.<\/p>\n<p>E. TENANT AUDIT. If Tenant shall dispute the amount set forth in any statement<br \/>\nprovided by Landlord under Paragraph 7.B. or 7.C. above, Tenant shall have the<br \/>\nright, not later than sixty (60) days following receipt of such statement and<br \/>\nupon the condition that Tenant shall first deposit with Landlord the full amount<br \/>\nin dispute, to cause Landlord&#8217;s books and records with respect to Operating<br \/>\nExpenses for such fiscal year to be audited by certified public accountants<br \/>\nselected by Tenant and subject to Landlord&#8217;s reasonable right of approval. The<br \/>\nOperating Expense Adjustment shall be appropriately adjusted on the basis of<br \/>\nsuch audit. If such audit discloses a liability for a refund in excess of ten<br \/>\npercent (100%) of Tenant&#8217;s Proportionate Share of the Operating Expenses<br \/>\npreviously reported, the cost of such audit shall be home by Landlord; otherwise<br \/>\nthe cost of such audit shall be paid by Tenant. If Tenant shall not request an<br \/>\naudit in accordance with the provisions of this Paragraph 7.E. within 60 days<br \/>\nafter receipt of Landlord&#8217;s statement provided pursuant to Paragraph 7.B. or<br \/>\n7.C., such statement shall be final and binding for all purposes hereof.<\/p>\n<p>                         8.  INSURANCE AND INDEMNIFICATION<\/p>\n<p>A. LANDLORD&#8217;S INSURANCE. All insurance maintained by Landlord shall be for the<br \/>\nsole benefit of Landlord and under Landlord&#8217;s sole control.<\/p>\n<p>     (1) PROPERTY INSURANCE. Landlord agrees to maintain property insurance<br \/>\n     insuring the Building against damage or destruction due to risk<br \/>\n     including fire, vandalism, and malicious mischief in an amount not less<br \/>\n     than the replacement cost thereof. in the form and with deductibles and<br \/>\n     endorsements as selected by Landlord. At its election, Landlord may<br \/>\n     instead (but shall have no obligation to) obtain &#8220;All Risk&#8221; coverage,<br \/>\n     and may also obtain earthquake, pollution, and\/or flood insurance in<br \/>\n     amounts selected by Landlord.<\/p>\n<p>     (2) OPTIONAL INSURANCE. Landlord, at Landlord&#8217;s option, may also (but<br \/>\n     shall have no obligation to) carry insurance against loss of rent, in an<br \/>\n     amount equal to the amount of Base Rent and Additional Rent that<br \/>\n     Landlord could be required to abate to all Building tenants in the event<br \/>\n     of condemnation or casualty damage for a period of twelve (12) months.<br \/>\n     Landlord may also (but shall have no obligation to) carry such other<br \/>\n     insurance as Landlord may deem prudent or advisable, including, without<br \/>\n     limitation, liability insurance in such amounts and on such terms as<br \/>\n     Landlord shall determine. Landlord shall not e obligated to insure, and<br \/>\n     shall have no responsibility whatsoever for any damage to, any<br \/>\n     furniture, machinery, goods, inventory or supplies, or other personal<br \/>\n     property or fixtures which Tenant may keep or maintain in the Premises,<br \/>\n     or any leasehold improvements, additions or alterations within the<br \/>\n     Premises.<\/p>\n<p>B. TENANT&#8217;S INSURANCE.<\/p>\n<p>     (1) PROPERTY INSURANCE. Tenant shall procure at Tenant&#8217;s sole cost and<br \/>\n     expense and keep in effect from the date of this Lease and at all times<br \/>\n     until the end of the Term, insurance on all personal property and<br \/>\n     fixtures of Tenant and all improvements, additions or alterations made<br \/>\n     by or for Tenant to the Premises on an &#8220;All Risk&#8221; basis, insuring such<br \/>\n     property for the full replacement value of such property.<\/p>\n<p>     (2) LIABILITY INSURANCE. Tenant shall procure at Tenant&#8217;s sole cost and<br \/>\n     expense and keep in effect from the date of this Lease and at all times<br \/>\n     until the end of the Term Commercial General Liability insurance<br \/>\n     covering bodily injury and property damage liability occurring in or<br \/>\n     about the Premises or arising out of the use and occupancy of the<br \/>\n     Premises and the Project, and<\/p>\n<p>                                      7<\/p>\n<p>     any part of either, and any areas adjacent thereto, and the business<br \/>\n     operated by Tenant or by any other occupant of the Premises. Such<br \/>\n     insurance shall include contractual liability insurance coverage<br \/>\n     insuring all of Tenant&#8217;s indemnity obligations under this Lease. Such<br \/>\n     coverage shall have a minimum combined single limit of liability of at<br \/>\n     least Two Million Dollars ($2.000,000.00). and a minimum general<br \/>\n     aggregate limit of Three Million Dollars ($3,000.000.00), with an<br \/>\n     &#8220;Additional Insured &#8211; Managers or Lessors of Premises Endorsement&#8221; All<br \/>\n     such policies shall be written to apply to all bodily injury (including<br \/>\n     death). property damage or loss, personal and advertising injury and<br \/>\n     other covered loss, however occasioned, occurring during the policy<br \/>\n     term. shall be endorsed to add Landlord and any party holding an<br \/>\n     interest to which this Lease may be subordinated as an additional<br \/>\n     insured, and shall provide that such coverage shall be &#8220;primary&#8221; and<br \/>\n     non-contributing with any insurance maintained by Landlord, which shall<br \/>\n     be excess insurance only. Such coverage shall also contain endorsements<br \/>\n     including employees as additional insureds if not covered by Tenant&#8217;s<br \/>\n     Commercial General Liability Insurance. All such insurance shall provide<br \/>\n     for the severability of interests of insureds; and shall be written on<br \/>\n     an &#8220;occurrence&#8221; basis, which shall afford coverage for all claims based<br \/>\n     on acts, omissions, injury and damage, which occurred or arose (or the<br \/>\n     onset of which occurred or arose) in whole or in part during the policy<br \/>\n     period.<\/p>\n<p>     (3) WORKERS&#8217; COMPENSATION AND EMPLOYERS&#8217; LIABILITY INSURANCE. Tenant<br \/>\n     shall carry Workers* Compensation Insurance as required by any<br \/>\n     Regulation, throughout the Term at Tenant&#8217;s sole cost and expense.<br \/>\n     Tenant shall also carry Employers&#8217; Liability Insurance in amounts not<br \/>\n     less than One Million Dollars ($1,000,000) each accident for bodily<br \/>\n     injury by accident; One Million Dollars ($1,000,000) policy limit for<br \/>\n     bodily injury by disease; and One Million Dollars (S 1,000.000) each<br \/>\n     employee for bodily injury by disease, throughout the Term at Tenant&#8217;s<br \/>\n     sole cost and expense.<\/p>\n<p>     (4) GENERAL INSURANCE REQUIREMENTS. All coverages described in this<br \/>\n     Paragraph 8.B. shall be endorsed to (i) provide Landlord with thirty<br \/>\n     (30) days&#8217; notice of cancellation or change in terms; and (ii) waive all<br \/>\n     rights of subrogation by the insurance carrier against Landlord. If at<br \/>\n     any time during the Term the amount or coverage of insurance which<br \/>\n     Tenant is required to carry under this Paragraph 8.13. is, in Landlord&#8217;s<br \/>\n     reasonable judgment, materially less than the amount or type of<br \/>\n     insurance coverage typically carried by owners or tenants of properties<br \/>\n     located in the general area in which the Premises are located which are<br \/>\n     similar to and operated for similar purposes as the Premises or if<br \/>\n     Tenant&#8217;s use of the Premises should change with or without Landlord&#8217;s<br \/>\n     consent, Landlord shall have the right to require Tenant to increase the<br \/>\n     amount or change the types of insurance coverage required under this<br \/>\n     Paragraph 8.13. All insurance policies required to be carried by Tenant<br \/>\n     under this Lease shall be written by companies rated A X or better in<br \/>\n     &#8220;Best&#8217;s Insurance Guide&#8221; and authorized to do business in the State of<br \/>\n     California. In any event deductible amounts under all insurance policies<br \/>\n     required to be carried by Tenant under this Lease shall not exceed Five<br \/>\n     Thousand Dollars ($5,000.00) per occurrence. Tenant shall deliver to<br \/>\n     Landlord on or before the Term Commencement Date, and thereafter at<br \/>\n     least thirty (30) days before the expiration dates of the expired<br \/>\n     policies, certified copies of Tenant&#8217;s insurance policies, or a<br \/>\n     certificate evidencing the same issued by the insurer thereunder, and,<br \/>\n     if Tenant shall fail to procure such insurance. or to deliver such<br \/>\n     policies or certificates, Landlord may, at Landlord&#8217;s option and in<br \/>\n     addition to Landlord&#8217;s other remedies in the event of a default by<br \/>\n     Tenant hereunder, procure the same for the account of Tenant, and the<br \/>\n     cost thereof shall be paid to Landlord as Additional Rent.<\/p>\n<p>C. INDEMNIFICATION. Tenant shall indemnify, defend by counsel reasonably<br \/>\nacceptable to Landlord, protect and hold Landlord harmless from and against<br \/>\nany and all claims, liabilities, losses, costs, loss of rents. liens,<br \/>\ndamages, injuries or expenses, including reasonable attorneys&#8217; and<br \/>\nconsultants&#8217; fees and court costs, demands, causes of action, or judgments,<br \/>\ndirectly or indirectly arising out of or related to: (1) claims of injury to<br \/>\nor death of persons or damage to property occurring or resulting directly or<br \/>\nindirectly from the use or occupancy of the Premises. Building or Project by<br \/>\nTenant or Tenant&#8217;s Parties, or from activities or failures to act of Tenant<br \/>\nor Tenant&#8217;s Parties; (2) claims arising from work or labor performed, or for<br \/>\nmaterials or supplies furnished to or at the request or for the account or<br \/>\nTenant in connection with performance of any work done for the account of<br \/>\nTenant within the Premises or Project, (3) claims arising from any breach or<br \/>\ndefault on the part of Tenant in the performance of any covenant contained in<br \/>\nthis Lease; and (4) claims arising from the negligence or intentional acts or<br \/>\nomissions of Tenant or Tenant&#8217;s Parties. The foregoing indemnity by Tenant<br \/>\nshall not be applicable to claims to the extent arising from the gross<br \/>\nnegligence or willful misconduct of Landlord. Landlord shall not be liable to<br \/>\nTenant and Tenant hereby waives all claims against Landlord for any injury or<br \/>\ndamage to any person or property in or about the Premises. Building or<br \/>\nProject by or from any cause whatsoever (other than Landlord&#8217;s gross<br \/>\nnegligence or willful misconduct) and. without limiting the generality of the<br \/>\nforegoing, whether caused by water leakage of any character from the roof,<br \/>\nwalls. basement or other portion of the Premises, Building or Project, or<br \/>\ncaused by gas, fire, oil or electricity in, on or about the Premises,<br \/>\nBuilding or Project. The provisions of this Paragraph shall survive the<br \/>\nexpiration or earlier termination of this Lease.<\/p>\n<p>                            9.  WAIVER OF SUBROGATION<\/p>\n<p>     To the extent permitted by law and without affecting Ac coverage<br \/>\nprovided by insurance to be maintained hereunder or any other rights or<br \/>\nremedies, Landlord and Tenant each waive any right to recover against the other<br \/>\nfor: (a) damages for injury to or death of persons. (b) damages to property,<br \/>\nincluding personal property; (c) damages to the Premises or any part thereof.<br \/>\nand (d) claims arising by reason or the foregoing due to hazards covered by<br \/>\ninsurance maintained or required to be maintained pursuant to this Lease to the<br \/>\nextent of proceeds recovered therefrom, or proceeds which would have been<br \/>\nrecoverable therefrom in the case of the failure of any party to maintain any<br \/>\ninsurance coverage required to be maintained by such party pursuant to this<br \/>\nLease. This provision is intended to waive fully. any rights and\/or claims<br \/>\narising by reason of the foregoing, but only to the extent that any of the<br \/>\nforegoing damages and\/or claims referred to above arc covered or would be<br \/>\ncovered, and only to the extent of such coverage, by insurance actually carried<br \/>\nor required to be maintained pursuant to this Lease by either Landlord or Tenant<br \/>\nThis provision is also intended to waive fully, and for the benefit of each<br \/>\nparty, any rights and\/or claims which might give rise to a right of subrogation<br \/>\non any insurance carrier. Subject to all qualifications of this Paragraph 9.<br \/>\nLandlord waives its rights as specified in this Paragraph 9 with respect to any<br \/>\nsubtenant that it has approved pursuant to Paragraph 21 but only in &#8220;change for<br \/>\nthe written waiver of such rights to be given by such subtenant to Landlord upon<br \/>\nsuch subtenant taking possession of the Premises or a portion thereof. Each<br \/>\nparty shall cause each insurance policy obtained by it to provide that the<br \/>\ninsurance company waives all right of recovery by way of subrogation against<br \/>\neither party in connection with any damage covered by any policy.<\/p>\n<p>                    10.  LANDLORD&#8217;S REPAIRS AND MAINTENANCE<\/p>\n<p>     Landlord shall at Landlord&#8217;s expense maintain in good repair, reasonable<br \/>\nwear and tear excepted, the structural soundness of the roof, foundations,<br \/>\nand exterior walls of the Building. The term &#8220;exterior walls&#8221; as used herein<br \/>\nshall not include windows. glass or plate glass, doors, special store fronts<br \/>\nor office entries. Any damage caused by or repairs necessitated by any<br \/>\nnegligence or act of Tenant or Tenant&#8217;s Parties may be repaired by Landlord<br \/>\nat Landlord&#8217;s option and Tenant&#8217;s expense. Tenant shall immediately give<br \/>\nLandlord written notice of any defect or need of repairs in such components<br \/>\nof the Building for which Landlord is responsible, upon Tenant becoming<br \/>\nactually or constructively aware thereof, after which Landlord shall have a<br \/>\nreasonable opportunity and the right to enter the Premises at all reasonable<br \/>\ntimes to repair same. Landlord&#8217;s liability with respect to any defects,<br \/>\nrepairs, or maintenance for which Landlord is responsible under any of the<br \/>\nprovisions of this Lease shall be limited to the cost of such repairs or<br \/>\nmaintenance, and there shall be no abatement of rent and no liability of<br \/>\nLandlord by reason of any injury to or interference with Tenant&#8217;s business<br \/>\narising from the making of repairs, alterations or improvements in or to any<br \/>\nportion of the Premises, the Building or the Project or to fixtures,<br \/>\nappurtenances or equipment in the Building, except as provided in Paragraph<br \/>\n24. By taking possession of the Premises, Tenant accepts them &#8220;as is,&#8221; as<br \/>\nbeing in good<\/p>\n<p>                                      8<\/p>\n<p>order, condition and repair and the condition in which Landlord<br \/>\nis obligated to deliver them and suitable for the Permitted Use Find Tenant&#8217;s<br \/>\nintended operations in the Premises, whether or not any notice of acceptance<br \/>\nis given.<\/p>\n<p>                    11.  TENANT&#8217;S REPAIRS AND MAINTENANCE<\/p>\n<p>     Tenant shall at all times during the Tam at Tenant&#8217;s expense maintain<br \/>\nall parts of the Premises and such portions of the Building as are within the<br \/>\nexclusive control of Tenant thereto, except for such repairs and replacements<br \/>\nto be made by Landlord at its sole cost and expense pursuant to Paragraph 10,<br \/>\nin a first-class, good, clean and secure condition and promptly make all<br \/>\nnecessary repairs and replacements, as determined by Landlord, with materials<br \/>\nand workmanship of the same character, kind and quality as the original.<br \/>\nNotwithstanding anything to the contrary contained herein, Tenant shall, at<br \/>\nits expense, promptly repair any damage to the Premises or the Building or<br \/>\nProject resulting from or caused by any negligence or act of Tenant or<br \/>\nTenant&#8217;s Parties.<\/p>\n<p>                              12.  ALTERATIONS<\/p>\n<p>A. Except for cosmetic alterations, Tenant shall not make, or allow to be made,<br \/>\nany alterations, physical additions, improvements or partitions, including<br \/>\nwithout limitation the attachment of any fixtures or equipment, in, about or to<br \/>\nthe Premises (&#8220;Alterations&#8221;) without obtaining the prior written consent of<br \/>\nLandlord, which consent shall not be unreasonably withheld or delayed with<br \/>\nrespect to proposed Alterations which: (a) comply with all applicable<br \/>\nRegulations; (b) are, in Landlord&#8217;s opinion, compatible with the Building or the<br \/>\nProject and its mechanical, plumbing, electrical, heating\/ventilation\/air<br \/>\nconditioning system and will not cause the Building or Project or such systems<br \/>\nto be required to be modified to comply with any Regulations (including. without<br \/>\nlimitation, the Americans With Disabilities Act); and (c) will not unreasonably<br \/>\ninterfere with the use and occupancy of any other portion of the Building or<br \/>\nProject by any other tenant or its invitees. Specifically, but-without limiting<br \/>\nthe generality or the foregoing, Landlord shall have the right of written<br \/>\nconsent for all plans and specifications for the proposed Alterations,<br \/>\nconstruction means and methods, all appropriate permits and licenses, any<br \/>\ncontractor or subcontractor to be employed on the work of Alterations, and the<br \/>\ntime for performance of such work, and may impose rules and regulations for<br \/>\ncontractors and subcontractors performing such work. Landlord shall not require<br \/>\nTenant to post any payment or performance bonds unless the cost of the proposed<br \/>\nAlterations exceeds $15,000.00. Tenant shall also supply to Landlord any<br \/>\ndocuments and information reasonably requested by Landlord in connection with<br \/>\nLandlord&#8217;s consideration of a request for approval hereunder. Tenant shall cause<br \/>\nall Alterations to be accomplished in a first-class, good and workmanlike<br \/>\nmanner, and to comply with all applicable Regulations and Paragraph 27 hereof<br \/>\nTenant shall at Tenant&#8217;s sole expense, perform any additional work required<br \/>\nunder applicable Regulations due to the Alterations hereunder. No review or<br \/>\nconsent by Landlord of or to any proposed Alteration or additional work shall<br \/>\nconstitute a waiver of Tenant&#8217;s obligations under this Paragraph 12, nor<br \/>\nconstitute any warranty or representation that the same complies with all<br \/>\napplicable Regulations, for which Tenant shall at all times be solely<br \/>\nresponsible. Tenant shall reimburse Landlord for all costs which Landlord may<br \/>\nincur in connection with granting approval to Tenant for any such Alterations,<br \/>\nincluding any costs or expenses which Landlord may incur in electing to have<br \/>\noutside architects and engineers review said plans and specifications. and shall<br \/>\npay Landlord an administration fee of fifteen percent (15%) of the cost of the<br \/>\nAlterations as Additional Rent hereunder, provided that the Alteration work is<br \/>\nperformed by contractors engaged by Landlord on Tenant&#8217;s behalf. All such<br \/>\nAlterations shall remain the property of Tenant until the expiration or earlier<br \/>\ntermination of this Lease, at which time they shall be and become the property<br \/>\nof Landlord; provided, however. that Landlord may, at Landlord&#8217;s option, require<br \/>\nthat Tenant, at Tenant&#8217;s expense, remove any or all Alterations made by Tenant<br \/>\nand restore the Premises by the expiration or earlier termination of this Lease,<br \/>\nto their condition existing prior to the construction of any such Alterations.<br \/>\nAll such removals and restoration shall be accomplished in a first-class and<br \/>\ngood and workmanlike manner so as not to cause any damage to the Premises or<br \/>\nProject whatsoever. If Tenant fails to remove such Alterations or Tenant&#8217;s trade<br \/>\nfixtures or furniture or other personal property, Landlord my keep and use them<br \/>\nor remove any of them and cause them to be stored or sold in accordance with<br \/>\napplicable law, at Tenant&#8217;s sole expense. In addition to and wholly apart from<br \/>\nTenant&#8217;s obligation to pay Tenant&#8217;s Proportionate Share of Operating Expenses,<br \/>\nbut not in duplication thereof. Tenant shall be responsible for and shall pay<br \/>\nprior to delinquency any taxes or governmental service fees, possessory interest<br \/>\ntaxes, fees or Ones in lieu of any such taxes, capital levies. or other charges<br \/>\nimposed upon, levied with respect to or assessed against its fixtures or<br \/>\npersonal property, on the value of Alterations within the Premises, and on<br \/>\nTenant&#8217;s interest pursuant to this Lease, or any increase in any of the<br \/>\nforegoing based on such Alterations. To the extent that any such taxes arc not<br \/>\nseparately assessed or billed to Tenant, Tenant shall pay the amount thereof as<br \/>\ninvoiced to Tenant by Landlord.<\/p>\n<p>     Landlord will not require Tenant to remove the original Tenant<br \/>\nImprovements constructed Prior to commencement upon expiration of the Lease<br \/>\nor sooner termination thereof.<\/p>\n<p>B. In compliance with Paragraph 27 hereof at least ten (10) business days before<br \/>\nbeginning construction of any Alteration, Tenant shall give Landlord written<br \/>\nnotice of the expected commencement date of that construction to permit Landlord<br \/>\nto post and record a notice of non-responsibility. Upon substantial completion<br \/>\nof construction, if the law so provides, Tenant &#8220;I cause a timely notice of<br \/>\ncompletion to be recorded in the office of the recorder of the county in which<br \/>\nthe Building is located.<\/p>\n<p>                                13.  SIGNS<\/p>\n<p>     Tenant shall not place, install, affix, paint or maintain any signs,<br \/>\nnotices, graphics or banners whatsoever or any window decor which is visible<br \/>\nin or from public view or corridors, the common areas or the exterior of the<br \/>\nPremises or the Building. in or on any exterior window or window fronting<br \/>\nupon any common areas or service area without Landlord&#8217;s prior written<br \/>\napproval which Landlord shall have the right to withhold in its absolute and<br \/>\nsole discretion; provided that Tenant&#8217;s name shall be included in any<br \/>\nBuilding-standard door and directory signage, if any, in accordance with<br \/>\nLandlord&#8217;s Building signage program, including without limitation, payment by<br \/>\nTenant of any reasonable fee charged by Landlord for maintaining such signage<br \/>\nwhich fee shall constitute Additional Rent hereunder. Any installation of<br \/>\nsigns, notices, graphics or banners on or about the Premises or Project<br \/>\napproved by Landlord shall be subject to any Regulations and to any other<br \/>\nrequirements imposed by Landlord. Tenant shall remove all such signs or<br \/>\ngraphics by the expiration or any earlier termination of this Lease. Such<br \/>\ninstallations and removals shall be made in such manner as to avoid injury to<br \/>\nor defacement of the Premises, Building or Project and any other improvements<br \/>\ncontained therein, and Tenant shall repair any injury or defacement including<br \/>\nwithout limitation discoloration caused by such installation or removal.<\/p>\n<p>                          14.  INSPECTION\/POSTING NOTICES<\/p>\n<p>         After reasonable notice, except in emergencies where no such notice<br \/>\nshall be required, Landlord and Landlord&#8217;s agents and representatives, shall<br \/>\nhave the right to enter the Premises to inspect the same, to clean, to perform<br \/>\nsuch work as may be permitted or required hereunder. to make repairs,<br \/>\nimprovements or alterations to die Premises, Building or Project or to other<br \/>\ntenant spaces therein, to deal with emergencies, to post such notices as may be<br \/>\npermitted or required by law to prevent the perfection of liens against<br \/>\nLandlord&#8217;s<\/p>\n<p>                                      9<\/p>\n<p>interest in the Project or to exhibit the Premises in the last nine (9)<br \/>\nmonths of the Lease term to prospective tenants, purchasers, encumbrancers or<br \/>\nto others, or for any other purpose as Landlord may deem reasonably necessary<br \/>\nor desirable; provided, however. that Landlord shall use reasonable efforts<br \/>\nnot to unreasonably interfere with Tenant&#8217;s business operations. Landlord<br \/>\nshall use good faith efforts to abide by any safety or security precautions<br \/>\nof Tenant. provided that Landlord shall not incur any monetary costs and that<br \/>\nLandlord&#8217;s access to the Premises as provided in this Lease shall not be<br \/>\nimpeded Tenant shall not be entitled to any abatement of Rent by reason of<br \/>\nthe exercise of any such right of entry. Tenant waives any claim for damages<br \/>\nfor any injury or inconvenience to or interference with Tenant&#8217;s business.<br \/>\nany loss of occupancy or quiet enjoyment of the Premises, and any other loss<br \/>\noccasioned thereby. excluding only losses due to Landlord&#8217;s negligence or<br \/>\nwillful misconduct. Landlord shall at all times have and retain a key with<br \/>\nwhich to unlock all of the doors in, upon and about the Premises, excluding<br \/>\nTenant&#8217;s vaults and sates or special security areas (designated in advance).<br \/>\nand Landlord shall have the right to use any and all means which Landlord may<br \/>\ndeem necessary or proper to open said doors in an emergency, in order to<br \/>\nobtain entry to any portion of the Premises, and any entry to the Premises or<br \/>\nportions thereof obtained by Landlord by any of said means, or otherwise,<br \/>\nshall not be construed to be a forcible or unlawful entry into, or a detainer<br \/>\nof, the Premises, or an eviction, actual or constructive, of Tenant from the<br \/>\nPremises or any portions thereof. At any time within six (6) months prior to<br \/>\nthe expiration of the Term or following any earlier termination of this Lease<br \/>\nor agreement to terminate this Lease, Landlord shall have the right to erect<br \/>\non the Premises. Building and\/or Project a suitable sign indicating that the<br \/>\nPremises are available for lease.<\/p>\n<p>                         15.  SERVICES AND UTILITIES<\/p>\n<p>A. Provided Tenant &#8220;I not be in default hereunder beyond any applicable cure<br \/>\nperiod, and subject to the provisions elsewhere herein contained and to the<br \/>\nrules and regulations of the Building, Landlord shall furnish to the-Premises<br \/>\nduring ordinary business hours of generally recognized business days, to be<br \/>\ndetermined by Landlord (but exclusive, in any event, of Saturdays, Sundays and<br \/>\nlegal holidays), water for lavatory and drinking purposes and electricity, hem<br \/>\nand air conditioning as usually furnished or supplied for use of the Premises<br \/>\nfor reasonable and normal office use as of the date Tenant takes possession of<br \/>\nthe Premises as determined by Landlord (but not including above-standard or<br \/>\ncontinuous cooling for excessive heat-generating machines, excess lighting or<br \/>\nequipment), janitorial services during the times and in the manner that such<br \/>\nservices or, in Landlord&#8217;s judgment, customarily furnished in comparable office<br \/>\nbuildings in the immediate market area, and elevator service, which shall mean<br \/>\nservice either by nonattended automatic elevators or elevators with attendants,<br \/>\nor both, at the option of Landlord. Tenant acknowledges that Tenant has<br \/>\ninspected and accepts the water. electricity, heat and air conditioning and<br \/>\nother utilities and services being supplied or furnished to the Premises as of<br \/>\nthe date Tenant takes possession of the Premises, as being sufficient for use of<br \/>\nthe Premises for reasonable and normal office use in their present condition,<br \/>\n&#8220;as is,&#8221; and suitable for the Permitted Use, and for Tenant&#8217;s intended<br \/>\noperations in the Premises. Landlord shall have no obligation to provide<br \/>\nadditional or after-hours heating or air conditioning, but if Landlord elects to<br \/>\nprovide such services at Tenant&#8217;s request, Tenant shall pay to Landlord a<br \/>\nreasonable charge for such services as determined by Landlord. Landlord shall<br \/>\nprovide after-hours electricity provided that service providers do and are able<br \/>\nto deliver after-hours electricity to Premises building. Tenant agrees to keep<br \/>\nand cause to be kept closed all window covering when necessary because of the<br \/>\nsun&#8217;s position, and Tenant also-agrees at all times to cooperate fully with<br \/>\nLandlord and to abide by all of the regulations and requirements which Landlord<br \/>\nmay prescribe for the proper functioning and protection of electrical, heating,<br \/>\nventilating and air conditioning systems. Wherever heat-generating machines,<br \/>\nexcess lighting or equipment are used in the Premises which affect the<br \/>\ntemperature otherwise maintained by the air conditioning system, Landlord<br \/>\nreserves the right to install supplementary air conditioning units in the<br \/>\nPremises and the cost thereof, including the cost of installation and the cost<br \/>\nof operation and maintenance thereof, shall be paid by Tenant to Landlord upon<br \/>\ndemand by Landlord. Subject to the foregoing, Tenant shall have access to the<br \/>\nPremises seven (7) days a week and 24 hours per day.<\/p>\n<p>B. Tenant shall not without written consent of Landlord use any apparatus,<br \/>\nequipment or device in the Premises. including without limitation, computers,<br \/>\nelectronic data processing machines, copying machines, and other machines, using<br \/>\nexcess lighting or using electric current, water, or any other resource in<br \/>\nexcess of or which will in any way increase the amount of electricity, water. or<br \/>\nany other resource being furnished or supplied for the use of the Premises for<br \/>\nreasonable and normal office use, in each case as of the date Tenant takes<br \/>\npossession of the Premises as determined by Landlord, or which will require<br \/>\nadditions or alterations to or interfere with the Building power distribution<br \/>\nsystems; nor connect with electric current except through existing electrical<br \/>\noutlets in the Premises or water pipes, any apparatus, equipment or device for<br \/>\nthe purpose of using electrical current, water, or any other resource. If Tenant<br \/>\nshall require water or electric current or any other resource in excess of that<br \/>\nbeing furnished or supplied for the use of the Premises as of the date Tenant<br \/>\ntakes possession of the Premises as determined by Landlord, Tenant shall first<br \/>\nprocure the written consent of Landlord which Landlord may refuse, to the use<br \/>\nthereof, and Landlord may cause a special meter to be installed in the Premises<br \/>\nso as to measure the amount of water. electric current or other resource<br \/>\nconsumed for any such other use. Tenant &#8220;I pay directly to Landlord as an<br \/>\naddition to and separate from payment of Operating Expenses the cost of all such<br \/>\nadditional resources. energy, utility service and meters (and of installation.<br \/>\nmaintenance and repair thereof and of any additional circuits or other equipment<br \/>\nnecessary to furnish such additional resources. energy. utility or service).<br \/>\nLandlord may add to the separate or metered charge a recovery of reasonable<br \/>\nadditional expense incurred in keeping account of the excess water, electric<br \/>\ncurrent or other resource so consumed. Landlord shall not be liable for any<br \/>\ndamages directly or indirectly resulting from nor shall the Rent or any monies<br \/>\nowed Landlord under this Lease herein reserved be abated by reason of: (a) the<br \/>\ninstallation, use or interruption of use of any equipment used in connection<br \/>\nwith the furnishing of any such utilities or services, or any change in the<br \/>\ncharacter or means of supplying or providing any such utilities or services or<br \/>\nany supplier thereof, (b) the failure to furnish or delay in furnishing any such<br \/>\nutilities or services when such failure or delay is caused by acts of God or the<br \/>\nelements, labor disturbances of any character, or any other accidents or other<br \/>\nconditions beyond the reasonable control of Landlord or because of any<br \/>\ninterruption of service due to Tenant&#8217;s use of water, electric current or other<br \/>\nresource in excess of that being supplied or furnished for the use of the<br \/>\nPremises as of the date Tenant takes possession of the Promises; (c) the<br \/>\ninadequacy, limitation, curtailment, rationing or restriction on use of water,<br \/>\nelectricity, gas or any other form of energy or any other service or utility<br \/>\nwhatsoever serving the Premises or Project, whether by Regulation or otherwise;<br \/>\nor (d) the partial or total unavailability of any such utilities or services to<br \/>\nthe Premises or the Building, whether by Regulation or otherwise; nor shall any<br \/>\nsuch occurrence constitute an actual or constructive eviction of Tenant.<br \/>\nLandlord shall take good faith efforts to cause any such utilities or services<br \/>\nwhich may be interrupted or curtailed to be promptly reinstated to full<br \/>\ncapacity, provided that Landlord shall not incur any monetary costs and that<br \/>\nLandlord&#8217;s access to the Premises as provided in this Lease shall not be<br \/>\nimpeded. Landlord shall further have no obligation to protect or preserve any<br \/>\napparatus, equipment or device installed by Tenant in the Premises. including<br \/>\nwithout limitation by providing additional or after-hours heating or air<br \/>\nconditioning, unless the same is paid for by Tenant. Landlord shall be entitled<br \/>\nto cooperate voluntarily and in a reasonable manner with the efforts of<br \/>\nnational. state or local governmental agencies or utility suppliers in reducing<br \/>\nenergy or other resource consumption. The obligation to make services available<br \/>\nhereunder shall be subject to the limitations of any such voluntary, reasonable<br \/>\nprogram. In addition. Landlord reserves the right to change the supplier or<br \/>\nprovider of any such utility or service from time to time. Tenant shall have no<br \/>\nright to contract with or otherwise obtain any electrical or other such service<br \/>\nfor or with respect to the Premises or Tenant&#8217;s operations therein from any<br \/>\nsupplier or provider of any such service. Tenant shall cooperate with Landlord<br \/>\nand any supplier or provider of such services designated by Landlord from time<br \/>\nto time to facilitate the delivery of such services to Tenant at the Premises<br \/>\nand to the Building and Project, including without limitation allowing Landlord<br \/>\nand Landlord&#8217;s suppliers or providers, and their respective agents and<br \/>\ncontractors. reasonable access to the Premises for the purpose of installing.<br \/>\nmaintaining, repairing, replacing or upgrading such service or any equipment or<br \/>\nmachinery associated therewith.<\/p>\n<p>C. Tenant shall pay, upon demand, for all utilities furnished to the Premises,<br \/>\nor if not separately billed to or metered to Tenant, Tenant&#8217;s Proportionate<br \/>\nShare of all charges jointly serving the Project in accordance with Paragraph 7.<br \/>\nAll sums payable under this Paragraph 15 shall constitute Additional Rent<br \/>\nhereunder.<\/p>\n<p>                                      10<\/p>\n<p>                              16.  SUBORDINATION<\/p>\n<p>     Without the necessity of any additional document being executed by<br \/>\nTenant for the purpose of effecting a subordination, this Lease shall be and<br \/>\nis hereby declared to be subject and subordinate at all times to: (a) all<br \/>\nground leases or underlying leases which may now exist or hereafter be<br \/>\nexecuted affecting the Premises and\/or the land upon which the Premises and<br \/>\nProject are situated, or both. and (b) any mortgage or deed of hug which may<br \/>\nnow exist or be placed upon the Building, the Project and\/or the land upon<br \/>\nwhich the Premises or the Project are situated, or said ground leases or<br \/>\nunderlying leases, or Landlord&#8217;s interest or estate in any of said items<br \/>\nwhich is specified as security. Notwithstanding the foregoing, Landlord shall<br \/>\nhave the fight to subordinate or cause to be subordinated any such ground<br \/>\nleases or underlying leases or any such liens to this Lease. If any ground<br \/>\nlease or underlying lease terminates for any reason or any mortgage or deed<br \/>\nof trust is foreclosed or a conveyance in lieu of foreclosure is made for any<br \/>\nreason, Tenant shall, notwithstanding any subordination, attorn to and become<br \/>\nthe Tenant of the successor in interest to Landlord provided that Tenant<br \/>\nshall not be disturbed in it-. possession under this Lease by such successor<br \/>\nin interest so long as Tenant is not in default under this Lease beyond any<br \/>\napplicable cure periods. Within ten (10) days after request by Landlord,<br \/>\nTenant shall execute and deliver any additional documents evidencing Tenant&#8217;s<br \/>\nattornment or the subordination of this Lease with respect to any such ground<br \/>\nleases or underlying leases or any such mortgage or deed of trust. in the<br \/>\nform requested by Landlord or by any ground landlord, mortgagee, or<br \/>\nbeneficiary under a deed of trust, subject to such nondisturbance<br \/>\nrequirement. If requested in writing by Tenant, Landlord shall use<br \/>\ncommercially reasonable efforts to obtain a subordination. nondisturbance and<br \/>\nattornment agreement for the benefit of Tenant reflecting the foregoing from<br \/>\nany present or future ground landlord, mortgagee or beneficiary. at Tenant&#8217;s<br \/>\nexpense, subject to such other terms and conditions as the ground landlord,<br \/>\nmortgagee or beneficiary may require.<\/p>\n<p>                            17.  FINANCIAL STATEMENTS<\/p>\n<p>     At the request of Landlord from time to time, Tenant shall provide to<br \/>\nLandlord Tenant&#8217;s and any guarantor&#8217;s current financial statements or other<br \/>\ninformation discussing financial worth of Tenant and any guarantor, which<br \/>\nLandlord shall use solely for purposes of this Lease and in connection with<br \/>\nthe ownership, management, financing and disposition of the Project. Tenant<br \/>\nshall be obligated to provide such financial statements to Landlord no more<br \/>\nthan twice per calendar year. Landlord shall use commercially reasonable<br \/>\nefforts to maintain the confidentiality of such statements with respect to<br \/>\nthird parties, except that disclosure is permitted to landlord&#8217;s lenders and<br \/>\nprospective purchasers and to others as may be required to be disclosed by<br \/>\nlaw.<\/p>\n<p>                         18.  ESTOPPEL CERTIFICATE<\/p>\n<p>     Tenant agrees from time to time, within ten (10) days after request of<br \/>\nLandlord, to deliver to Landlord, or Landlord&#8217;s designee, an estoppel<br \/>\ncertificate stating that this Lease is in full force and effect, that this<br \/>\nLease has not been modified (or stating all modifications, written or oral,<br \/>\nto this Lease), the date to which Rent has been paid, the unexpired portion<br \/>\nof this Lease, that there are no current defaults by Landlord or Tenant under<br \/>\nthis Lease (or specifying any such defaults), that the leasehold estate<br \/>\ngranted by this Lease is the sole interest of Tenant in the Premises and\/or<br \/>\nthe land at which the Premises are situated, and such other matters<br \/>\npertaining to this Lease as may be reasonably requested by Landlord or any<br \/>\nmortgagee, beneficiary, purchaser or prospective purchaser of the Building or<br \/>\nProject or any interest therein. Failure by Tenant to execute and deliver<br \/>\nsuch certificate shall constitute an acceptance: of the Premises and<br \/>\nacknowledgment by Tenant that the statements included are true and correct<br \/>\nwithout exception. Tenant agrees that if Tenant fails to execute and deliver<br \/>\nsuch certificate within such ten (10) day period. Landlord may execute and<br \/>\ndeliver such certificate on Tenant&#8217;s behalf and that such certificate shall<br \/>\nbe binding on Tenant. Landlord and Tenant intend that any statement delivered<br \/>\npursuant to this Paragraph may be relied upon by any mortgagee, beneficiary,<br \/>\npurchaser or prospective purchaser of the Building or Project or any interest<br \/>\ntherein. The parties agree that Tenant&#8217;s obligation to furnish such estoppel<br \/>\ncertificates in a timely fashion is a material inducement for Landlord&#8217;s<br \/>\nexecution of this Lease, and shall be an event of default (without any cure<br \/>\nperiod that might be provided under Paragraph 26.A(3) of this Lease) if<br \/>\nTenant fails to fully comply or makes any material misstatement in any such<br \/>\ncertificate.<\/p>\n<p>                              19.  SECURITY DEPOSIT<\/p>\n<p>     Tenant agrees to deposit with Landlord upon execution of this Lease, a<br \/>\nsecurity deposit as stated in the Basic Lease Information (the &#8220;Security<br \/>\nDeposit&#8221;), which sum shall be held and owned by Landlord, without obligation<br \/>\nto pay interest, as security for the performance of Tenant&#8217;s covenants and<br \/>\nobligations under this Lease. The Security Deposit is not an advance rental<br \/>\ndeposit or a measure of damages incurred by Landlord in cast of Tenant&#8217;s<br \/>\ndefault. Upon the occurrence of any event of default by Tenant, beyond any<br \/>\napplicable cure periods, Landlord may from time to time, without prejudice to<br \/>\nany other remedy provided herein or by law, use such fund as a credit to the<br \/>\nextent necessary to credit against any arrears of Rent or other payments due<br \/>\nto Landlord hereunder. and any other damage, injury. expense or liability<br \/>\ncaused by such event of default, and Tenant &#8220;I pay to Landlord. on demand,<br \/>\nthe amount so applied in order to restore the Security Deposit to its<br \/>\noriginal amount. Although the Security Deposit shall be deemed the property<br \/>\nof Landlord, any remaining balance of such deposit shall be returned by<br \/>\nLandlord to Tenant at such time after termination of this Lease that all of<br \/>\nTenant&#8217;s obligations under this Lease have been fulfilled, reduced by such<br \/>\namounts as may be required by Landlord to remedy defaults on the part of<br \/>\nTenant in the payment of Rent or other obligations of Tenant under this<br \/>\nLease, to repair damage to the Premises, Building or Project caused by Tenant<br \/>\nor any Tenant&#8217;s Parties and to clean the Premises. Landlord may use and<br \/>\ncommingle the Security Deposit with other funds of Landlord.<\/p>\n<p>                       20.  LIMITATION OF TENANTS REMEDIES<\/p>\n<p>     The obligations and liability of Landlord to Tenant for any default by<br \/>\nLandlord under the tam of this Lease am not personal obligations of Landlord<br \/>\nor of the individual or other partners of Landlord or its or their partners,<br \/>\ndirectors, officers, or shareholders. and Tenant agrees to look solely to<br \/>\nLandlord&#8217;s interest in the Project for the recovery of any amount from<br \/>\nLandlord. and shall not look to other assets of Landlord nor seek recourse<br \/>\nagainst the assets of the individual or other partners of Landlord or its or<br \/>\ntheir partners, directors, officers or shareholders. Any lien obtained to<br \/>\nenforce any such judgment and any levy of execution thereon shall be subject<br \/>\nand subordinate to any lien, mortgage or deed of bug on the Project. Under no<br \/>\ncircumstances &#8220;I Tenant have the right to offset against or recoup Rent or<br \/>\nother payments due and to become due to Landlord hereunder except as<br \/>\nexpressly provided in Paragraph 23.B. below, which Rent and other payments<br \/>\nshall be absolutely due and payable hereunder in accordance with the terms<br \/>\nhereof.<\/p>\n<p>                         21.  ASSIGNMENT AND SUBLETTING<\/p>\n<p>A.   (1) GENERAL. This Lease has been negotiated to be and is granted as an<br \/>\n     accommodation to Tenant. Accordingly, this Lease is personal to Tenant,<br \/>\n     and Tenant&#8217;s rights granted hereunder do not include the right to assign<br \/>\n     this Lease or sublease the Premises, or to receive any excess, either in<br \/>\n     installments or lump sum, over the Rent which is expressly reserved by<br \/>\n     Landlord as hereinafter provided, except as otherwise expressly<br \/>\n     hereinafter provided. Tenant shall not assign or pledge this Lease or<br \/>\n     sublet the Premises or any part thereof, whether voluntarily or by<br \/>\n     operation of law, or permit the use or occupancy of the Premises or any<br \/>\n     part thereof by anyone other than Tenant, or suffer or permit any such<br \/>\n     assignment, pledge, subleasing or occupancy, without Landlord&#8217;s prior<br \/>\n     written consent except as provided herein. If Tenant desires to assign<br \/>\n     this Lease or sublet any or all of the Premises, Tenant shall give<br \/>\n     Landlord written notice (the &#8220;Transfer Notice&#8221;) at least thirty (30)<br \/>\n     days prior to the anticipated effective date of the proposed assignment<br \/>\n     or sublease, which shall contain all of the information reasonably<br \/>\n     requested by Landlord to address Landlord&#8217;s decision criteria specified<br \/>\n     hereinafter. Landlord shall then have a period of fifteen (15)<\/p>\n<p>                                      11<\/p>\n<p>     days following receipt of the Transfer Notice to notify Tenant in writing<br \/>\n     that Landlord elects either: (i) to terminate this Lease as to the space<br \/>\n     so affected as of the date so requested by Tenant, provided that<br \/>\n     cumulative fifty percent (50%) or more of the Premises is proposed to be<br \/>\n     sublet; or (ii) to consent to the Proposed assignment or sublease,<br \/>\n     subject, however, to Landlord&#8217;s prior written consent of the proposed<br \/>\n     assignee or subtenant and of any related documents or agreements<br \/>\n     associated with the assignment or sublease. If Landlord should fail to<br \/>\n     notify Tenant in writing of such election within said period, Landlord<br \/>\n     shall be deemed to have waived option (i) above, but written consent by<br \/>\n     Landlord of the proposed assignee or subtenant shall still be required.<br \/>\n     If Landlord does not exercise option (i) above, Landlord&#8217;s consent to a<br \/>\n     proposed assignment or sublease shall not be unreasonably withheld.<br \/>\n     Consent to any assignment or subletting shall not constitute consent to<br \/>\n     any subsequent transaction to which this Paragraph 21 applies.<br \/>\n     Notwithstanding anything to the contrary contained in this Lease, if<br \/>\n     Landlord notifies Tenant of the exercise of its recapture right pursuant<br \/>\n     to this Paragraph 21.A., Tenant shall have the right, within five (5)<br \/>\n     business days after receipt of Landlord&#8217;s notice, to rescind in writing,<br \/>\n     its request for Landlord&#8217;s consent to the transfer, in which case this<br \/>\n     Lease shall continue in full force and effect.<\/p>\n<p>     (2) CONDITIONS OF LANDLORD&#8217;S CONSENT. Without limiting the other<br \/>\n     instances in which it may be reasonable for Landlord to withhold<br \/>\n     Landlord&#8217;s consent to an assignment or subletting, Landlord and Tenant<br \/>\n     acknowledge that it -hall be reasonable for Landlord to withhold<br \/>\n     Landlord&#8217;s consent in the following instances: if the proposed assignee<br \/>\n     does not agree to be bound by and assume the obligations of Tenant under<br \/>\n     this Lease in form and substance-reasonably satisfactory to Landlord.<br \/>\n     the use of the Premises by such proposed assignee or subtenant would not<br \/>\n     be a Permitted Use or would violate any exclusivity or other arrangement<br \/>\n     which Landlord has with any other tenant or occupant or any Regulation<br \/>\n     or would increase the Occupancy Density or Parking Density of the<br \/>\n     Building or Project, or would otherwise result in an undesirable tenant<br \/>\n     mix for the Project as determined by Landlord; the proposed assignee or<br \/>\n     subtenant is not of sound financial condition as determined by Landlord<br \/>\n     in Landlord&#8217;s sole discretion; the proposed assignee or subtenant is a<br \/>\n     governmental agency; the proposed assignee or subtenant does not have a<br \/>\n     good reputation as a tenant of property or a good business reputation;<br \/>\n     the proposed assignee or subtenant is a person with whom Landlord is<br \/>\n     negotiating to lease space in the Project or is a present tenant of the<br \/>\n     Project and Landlord then has space which will reasonably satisfy the<br \/>\n     proposed transferee&#8217;s space needs the assignment or subletting would<br \/>\n     entail any Alterations which would lessen the value of the leasehold<br \/>\n     improvements in the Premises or use of any Hazardous Materials or other<br \/>\n     noxious use or use which may unreasonably disturb other tenants of the<br \/>\n     Project; or Tenant is in default of any obligation of Tenant under this<br \/>\n     Lease, beyond any applicable cure periods, or Tenant has defaulted under<br \/>\n     this Lease on three (3) or more occasions during any twelve (12) months<br \/>\n     preceding the date that Tenant &#8220;I request consent. Failure by or refusal<br \/>\n     of Landlord to consent to a proposed assignee or subtenant shall not<br \/>\n     cause a termination of this Lease. Upon a termination tinder Paragraph<br \/>\n     21.A.(1)(i), Landlord may lease the Promises to any party, including<br \/>\n     parties with whom Tenant has negotiated an assignment or sublease.<br \/>\n     without incurring any liability to Tenant. At the option of Landlord, a<br \/>\n     surrender and termination of this Lease shall operate as an assignment<br \/>\n     to Landlord of some or all subleases or subtenancies. Landlord shall<br \/>\n     exercise this option by giving notice of that assignment to such<br \/>\n     subtenants on or before the effective date of the surrender and<br \/>\n     termination. in connection with each request for assignment or<br \/>\n     subletting. Tenant shall pay to Landlord Landlord&#8217;s standard fee for<br \/>\n     approving such requests, as well as all costs incurred by Landlord or<br \/>\n     any mortgagee or ground lessor in approving each such request and<br \/>\n     effecting any such transfer, including, without limitation, reasonable<br \/>\n     attorneys&#8217; fees. All such costs shall not exceed actual costs incurred<br \/>\n     by Landlord, plus an administration fee not to exceed $500.00 per<br \/>\n     transaction.<\/p>\n<p>B. BONUS RENT. Any Rent or other consideration realized by Tenant under any<br \/>\nsuch sublease or assignment in excess of the Rent payable hereunder, after<br \/>\namortization of a reasonable brokerage commission and the cost of any tenant<br \/>\nimprovements which Tenant is required to make under the proposed sublease or<br \/>\nassignment agreement amortized over the term of the proposed sublease or<br \/>\nassignment as the case may be, excluding any furniture, fixtures or equipment<br \/>\nleased or sold to the prospective tenant, incurred by Tenant. shall be<br \/>\ndivided and paid, ten percent (10%) to Tenant, ninety percent (90%) to<br \/>\nLandlord. In any subletting or assignment undertaken by Tenant. Tenant shall<br \/>\ndiligently seek to obtain the maximum rental amount available in the<br \/>\nmarketplace for comparable space available for primary Leasing.<\/p>\n<p>C. CORPORATION. If Tenant is a corporation, a transfer of corporate shares by<br \/>\nsale, assignment, bequest, inheritance, operation of law or other disposition<br \/>\n(including such a transfer to or by a receiver or trustee in federal or state<br \/>\nbankruptcy, insolvency or other proceedings) resulting in a change in the<br \/>\npresent control of such corporation or any of its parent corporations by the<br \/>\nperson or persons owning a majority of said corporate shares, shall constitute<br \/>\nan assignment for purposes of this Lease. The transfer of outstanding capital<br \/>\nstock or other listed equity interests, or the purchase of equity interests<br \/>\nissued in an initial public offering of stock, by persons or parties other than<br \/>\n&#8220;insiders&#8221; within the meaning or the Securities Exchange Act of 1934, as<br \/>\namended, through &#8220;over-the-counter&#8221; market to any recognized national or<br \/>\ninternational securities exchange shall not be included in determining whether<br \/>\nControl (as defined below) has been transferred. &#8220;Control&#8221; shall mean direct or<br \/>\nindirect ownership of fifty percent (50%) or more of the voting stock of a<br \/>\ncorporation of fifty percent (50%) or more of the legal or equitable interest in<br \/>\nany other business entity, or the power to direct the operations of any entity<br \/>\n(by equity ownership, contract or otherwise).<\/p>\n<p>     Notwithstanding the provisions of this Paragraph 21, Tenant may assign<br \/>\nthis Lease or sublet the entire Premises to any corporation which controls,<br \/>\nis controlled by or is under common control with, Tenant (each a &#8220;Permitted<br \/>\nTenant Affiliate&#8221;), provided that the Permitted Tenant Affiliate assumes, in<br \/>\nfull, the obligations off Tenant under this Lease and has a net worth at<br \/>\nleast equal to the net worth of Tenant as of the date of this Lease. If<br \/>\nTenant is a corporation, a dissolution of the corporation or a transfer (by<br \/>\none (1) or more transactions) of a majority of the voting stock of Tenant<br \/>\nshall be deemed to be an assignment of this Lease subject to the provisions<br \/>\nof this Paragraph 21; provided, however, that the provisions of this sentence<br \/>\nshall not apply to transactions with a corporation into or with which Tenant<br \/>\nis merged or consolidated or to which substantially all of Tenant&#8217;s assets<br \/>\nare transferred (each a &#8220;surviving corporation&#8221;) where (i) the surviving<br \/>\ncorporation is a Permitted Tenant Affiliate, (ii) the surviving. corporation<br \/>\nhas a net worth at least equal to the net worth of Tenant as of the date of<br \/>\nthis Lease and (iii) the surviving corporation assumes, in full, the<br \/>\nobligations of Tenant under this Lease.<\/p>\n<p>D. UNINCORPORATED ENTITY. If Tenant is a partnership, joint venture,<br \/>\nunincorporated limited liability company or other unincorporated business form,<br \/>\na transfer of the interest of persons, firms or entities responsible for<br \/>\nmanagerial control of Tenant by sale.<\/p>\n<p>E. LIABILITY. No assignment or subletting by Tenant, permitted or otherwise,<br \/>\nshall relieve Tenant of any obligation under this Lease or alter the primary<br \/>\nliability of the Tenant named herein for the payment of Rent or for the<br \/>\nperformance of any other obligations to be performed by Tenant, including<br \/>\nobligations contained in Paragraph 25 with respect to any assignee or subtenant.<br \/>\nLandlord may collect rent or other amounts or any portion thereof from any<br \/>\nassignee, subtenant or other occupant of the Premises, permitted or otherwise,<br \/>\nand apply the net rent collected to the Rent payable hereunder, but no such<br \/>\ncollection shall be deemed to be a waiver of this Paragraph 21, or the<br \/>\nacceptance of the assignee, subtenant or occupant as tenant, or a release of<br \/>\nTenant from the further performance by Tenant of the obligations of Tenant under<br \/>\nthis Lease. Any assignment or subletting which conflicts with the provisions<br \/>\nhereof shall be void.<\/p>\n<p>                                      12<\/p>\n<p>                               22.  AUTHORITY<\/p>\n<p>     Landlord represents and warrants that it has full right and authority to<br \/>\nenter into this Lease and to perform all of Landlord&#8217;s obligations hereunder<br \/>\nand that all persons signing this Lease on its behalf are authorized to do.<br \/>\nTenant and the person or persons, if any, signing on behalf of Tenant,<br \/>\njointly and severally represent and warrant that Tenant has full right and<br \/>\nauthority to enter into this Lease, and to perform all of Tenant&#8217;s<br \/>\nobligations hereunder, and that all persons signing this Lease on its behalf<br \/>\nare authorized to do so.<\/p>\n<p>                              23.  CONDEMNATION<\/p>\n<p>A. CONDEMNATION RESULTING IN TERMINATION. If the whole or any substantial part<br \/>\nof the Premises should be taken or condemned for any public use under any<br \/>\nRegulation, or by right of eminent domain, or by private purchase in lieu<br \/>\nthereof, and the taking would prevent or materially interfere with the Permitted<br \/>\nUse of the Premises, either party shall have the right to terminate this Lease<br \/>\nat its option. If any material portion of the Building or Project is taken or<br \/>\ncondemned for any public use under any Regulation, or by right of eminent<br \/>\ndomain, or by private purchase in lieu thereof, Landlord may terminate this<br \/>\nLease at its option. In either of such events, the Rent shall be abated during<br \/>\nthe unexpired portion of this Lease, effective when the physical taking of said<br \/>\nPremises shall have occurred.<\/p>\n<p>B. CONDEMNATION NOT RESULTING IN TERMINATION. If a portion of the Project of<br \/>\nwhich the Premises are a part should be taken or condemned for any public use<br \/>\nunder any Regulation, or by right of eminent domain, or by private purchase in<br \/>\nlieu thereof, and the taking prevents or materially interferes with the<br \/>\nPermitted Use of the Premises, and this Lease is not terminated as provided in<br \/>\nParagraph 23.A. above, the Rent payable hereunder during the unexpired portion<br \/>\nof this Lease shall be reduced, beginning on the date when the physical taking<br \/>\nshall have occurred, to such amount as may be fair and reasonable under all of<br \/>\nthe circumstances, but only after giving Landlord credit for all sums received<br \/>\nor to be received by Tenant by the condemning authority. Notwithstanding<br \/>\nanything to the contrary contained in this Paragraph, if the temporary use or<br \/>\noccupancy of any part of the Premises shall be taken or appropriated under power<br \/>\nof eminent domain during the Term, this Lease shall be and remain unaffected by<br \/>\nsuch taking or appropriation and Tenant shall continue to pay in full all Rent<br \/>\npayable hereunder by Tenant during the Term; in the event of any such temporary<br \/>\nappropriation or taking, Tenant shall be entitled to receive that portion of any<br \/>\naward which represents compensation for the use of or occupancy of the Premises<br \/>\nduring the Term, and Landlord shall be entitled to receive that portion of any<br \/>\naward which represents the cost of restoration of the Premises and the use and<br \/>\noccupancy of the Premises. If the temporary taking or appropriation under the<br \/>\npower of eminent domain does not exceed two hundred forty (240) days and such<br \/>\ntaking shall prevent or materially interfere with the Permitted Use of the<br \/>\nPremises, Tenant shall have the right to terminate this Lease.<\/p>\n<p>C. AWARD. Landlord shall be entitled to (and Tenant shall assign to Landlord)<br \/>\nany or all payment, income, rent, award or any interest therein whatsoever which<br \/>\nmay be paid or made in connection with such taking or conveyance and Tenant<br \/>\nshall have no claim against Landlord or otherwise for any sums paid by virtue of<br \/>\nsuch proceedings, whether or not attributable to the value of any unexpired<br \/>\nportion of this Lease, except as expressly provided in this Lease.<br \/>\nNotwithstanding the foregoing, any compensation specifically and separately<br \/>\nawarded Tenant for Tenant&#8217;s personal property and moving costs, shall be and<br \/>\nremain the property of Tenant.<\/p>\n<p>D. WAIVER OF CCP SS. 1265.130. Each party waives the provisions of California<br \/>\nCivil Code Procedure Section 1265.130 allowing either party to petition the<br \/>\nsuperior court to terminate this Lease as a result of a partial taking.<\/p>\n<p>                            24.  CASUALTY DAMAGE<\/p>\n<p>A. GENERAL. If the Premises or Building should be damaged or destroyed by fire,<br \/>\ntornado, or other casualty (collectively, &#8220;Casualty&#8221;), Tenant shall give<br \/>\nimmediate written notice thereof to Landlord. Within thirty (30) days after<br \/>\nLandlord&#8217;s receipt of such notice Landlord shall notify Tenant whether in<br \/>\nLandlord&#8217;s estimation material restoration of the Premises can reasonably be<br \/>\nmade within one hundred eighty (180) days from the date of Landlord&#8217;s notice and<br \/>\nreceipt of required permits for such restoration. Landlord&#8217;s determination shall<br \/>\nbe binding on Tenant.<\/p>\n<p>B. WITHIN 180 DAYS. If the Premises or Building should be damaged by Casualty to<br \/>\nsuch extent that material restoration can in Landlord&#8217;s estimation be reasonably<br \/>\ncompleted within one hundred eighty (180) days after the date of Landlord&#8217;s<br \/>\nnotice and, receipt of required permits for such restoration, this Lease shall<br \/>\nnot terminate. Provided that insurance proceeds are received by Landlord to<br \/>\nfully repair the damage, Landlord shall proceed to rebuild and repair the<br \/>\nPremises in the manner determined by Landlord, except that Landlord shall not be<br \/>\nrequired to rebuild, repair or replace any part of the Alterations which may<br \/>\nhave been placed on or about the Premises by Tenant. If the Premises are<br \/>\nuntenantable in whole or in part following such damage, the Rent payable<br \/>\nhereunder during the period in which they are untenantable shall be abated<br \/>\nproportionately, but only to the extent of rental abatement insurance proceeds<br \/>\nreceived by Landlord during the time and to the extent the Premises are unfit<br \/>\nfor occupancy.<\/p>\n<p>C. GREATER THAN 180 DAYS. If the Premises or Building should be damaged by<br \/>\nCasualty to such extent that rebuilding or repairs cannot in Landlord&#8217;s<br \/>\nestimation be reasonably completed within one hundred eighty (180) days after<br \/>\nthe date of such notice and receipt of required permits for such rebuilding or<br \/>\nrepair, then Landlord shall have the option of either (1) terminating this Lease<br \/>\neffective upon the date of the occurrence of such damage, in which event the<br \/>\nRent shall be abated during the unexpired portion of this Lease; or (2) electing<br \/>\nto rebuild or repair the Premises diligently and in the manner determined by<br \/>\nLandlord. Landlord shall notify Tenant of its election within thirty (30) days<br \/>\nafter Landlord&#8217;s receipt of notice of the damage or destruction. Notwithstanding<br \/>\nthe above, Landlord shall not be required to rebuild, repair or replace any part<br \/>\nof any Alterations which may have been placed, on or about the Premises by<br \/>\nTenant. If the Premises are untenantable in whole or in part following such<br \/>\ndamage, the Rent payable hereunder during the period in which they are<br \/>\nuntenantable shall be abated proportionately, but only to the extent of rental<br \/>\nabatement insurance proceeds received by Landlord during the time and to the<br \/>\nextent the Premises are unfit for occupancy.<\/p>\n<p>D. TENANT&#8217;S FAULT. Notwithstanding anything herein to the contrary, if the<br \/>\nPremises or any other portion of the Building are damaged by Casualty resulting<br \/>\nfrom the fault, negligence, or breach of this Lease by Tenant or any of Tenant&#8217;s<br \/>\nParties, Base Rent and Additional Rent shall not be diminished during the repair<br \/>\nof such damage and Tenant shall be liable to Landlord for the cost and expense<br \/>\nof the repair and restoration of the Building caused thereby to the extent such<br \/>\ncost and expense is not covered by insurance proceeds.<\/p>\n<p>E. INSURANCE PROCEEDS. Notwithstanding anything herein to the contrary, if the<br \/>\nPremises or Building are damaged or destroyed and are not fully covered by the<br \/>\ninsurance proceeds received by Landlord or if the holder of any indebtedness<br \/>\nsecured by a mortgage or deed of trust covering the Premises requires that the<br \/>\ninsurance proceeds be applied to such indebtedness then in either case Landlord<br \/>\nshall have the right to terminate this Lease by delivering written notice of<br \/>\ntermination to Tenant within thirty (30) days after the date of notice to<br \/>\nLandlord that said damage or destruction is not fully covered by insurance or<br \/>\nsuch requirement is made by any such holder, as the case may be, whereupon this<br \/>\nLease shall terminate.<\/p>\n<p>F. WAIVER. This Paragraph 24 shall be Tenant&#8217;s sole and exclusive remedy in the<br \/>\nevent of damage or destruction to the Premises or the Building. As a material<br \/>\nenhancement to Landlord entering into this Lease, Tenant hereby waives any<br \/>\nrights it may have under Sections 1932, 1933(4), 1941 or 1942 of the Civil Code<br \/>\nof California with respect to my destruction of the Premises, Landlord&#8217;s<br \/>\nobligation for<\/p>\n<p>                                      13<\/p>\n<p>tenantability of the Premises and Tenant&#8217;s right to make repairs and deduct<br \/>\nthe expenses of such repairs, or under any similar law, statute or ordinance<br \/>\nnow or hereafter in effect.<\/p>\n<p>G. TENANT&#8217;S PERSONAL PROPERTY. In the event of any damage or destruction of the<br \/>\nPremises or the Building, under no circumstances shall Landlord be required to<br \/>\nrepair any injury or damage to, or make any repairs to or replacements of,.<br \/>\nTenant&#8217;s personal property.<\/p>\n<p>H. TENANT&#8217;S RIGHT TO TERMINATE. If all or a substantial part of the Premises are<br \/>\nrendered unusable for the Permitted Use by damage to all or any part of the<br \/>\nProject from fire or other casualty, and Landlord does not elect to terminate<br \/>\nthe Lease as provided in Paragraph 24.C., then Tenant may elect to terminate<br \/>\nthis Lease if Landlord&#8217;s estimate of the time required to complete Landlord&#8217;s<br \/>\nrepair obligations under this Lease is greater than two hundred ten (210) days<br \/>\nafter commencement of the repair or restoration work.<\/p>\n<p>                              25.  HOLDING OVER<\/p>\n<p>     Unless Landlord expressly consents in writing to Tenant&#8217;s holding over,<br \/>\nTenant shall be unlawfully and illegally in possession of the Premises,<br \/>\nwhether or not Landlord accepts any rent from Tenant or any other person<br \/>\nwhile Tenant remains in possession of the Premises without Landlord&#8217;s written<br \/>\nconsent. If Tenant shall retain possession of the Premises or any portion<br \/>\nthereof without Landlord&#8217;s consent following the expiration of this Lease or<br \/>\nsooner termination for any reason, then Tenant shall pay to Landlord for each<br \/>\nday of such retention triple the amount of daily rental as of the last month<br \/>\nprior to the date of expiration or earlier termination. Tenant shall also<br \/>\nindemnify, defend, protect and hold Landlord harmless from any loss,<br \/>\nliability or cost, including consequential and incidental damages and<br \/>\nreasonable attorneys&#8217; fees, incurred by Landlord resulting from delay by<br \/>\nTenant in surrendering the Premises, including, without limitation, any<br \/>\nclaims made by the succeeding tenant founded on such delay. Acceptance of<br \/>\nRent by Landlord following expiration or earlier termination of this Lease,<br \/>\nor following demand by Landlord for possession of the Premises, shall not<br \/>\nconstitute a renewal of this Lease, and nothing contained in this Paragraph<br \/>\n25 shall waive Landlord&#8217;s right of reentry or any other right. Additionally,<br \/>\nif upon expiration or earlier termination of this Lease, or following demand<br \/>\nby Landlord for possession of the Premises, Tenant has not fulfilled its<br \/>\nobligation with respect to repairs and cleanup of the Premises or any other<br \/>\nTenant obligations as set forth in this Lease, then Landlord shall have the<br \/>\nright to perform any such obligations as it deems necessary at Tenant&#8217;s sole<br \/>\ncost and expense, and any time required by Landlord to complete such<br \/>\nobligations shall be considered a period of holding over and the terms of<br \/>\nthis Paragraph 25 shall apply. The provisions of this Paragraph 25 shall<br \/>\nsurvive any expiration or earlier termination of this Lease.<\/p>\n<p>                              26.  DEFAULT<\/p>\n<p>A.   EVENTS OF DEFAULT. The occurrence of any of the following shall<br \/>\n     constitute an event of default on the part of Tenant:<\/p>\n<p>     (1) ABANDONMENT. Abandonment or vacation of the Premises for a<br \/>\n     continuous period in excess of five (5) days. Tenant waives any right to<br \/>\n     notice Tenant may have under Section 1951.3 of the Civil Code of the<br \/>\n     State of California, the terms of this Paragraph 26.A. being deemed such<br \/>\n     notice to Tenant as required by said Section 1951.3.<\/p>\n<p>     (2) NONPAYMENT OF RENT. Failure to pay any installment of Rent or any<br \/>\n     other amount due and payable hereunder within three (3) days after the<br \/>\n     date when said payment is due, as to which time is of the essence.<\/p>\n<p>     (3) OTHER OBLIGATIONS. Failure to perform any obligation, agreement or<br \/>\n     covenant under this Lease other than those matters specified in<br \/>\n     subparagraphs (1) and (2) of this Paragraph 26A., such failure<br \/>\n     continuing for fifteen (15) days after written notice of such failure,<br \/>\n     as to which time is of the essence provided that Tenant shall not be in<br \/>\n     default hereunder if Tenant commences the cure within the fifteen (15)<br \/>\n     day period and thereafter diligently prosecutes the cure to completion<br \/>\n     with an additional fifteen (15) days.<\/p>\n<p>     (4) GENERAL ASSIGNMENT. A general assignment by Tenant for the benefit<br \/>\n     of creditors.<\/p>\n<p>     (5) BANKRUPTCY. The filing of any voluntary petition in bankruptcy by<br \/>\n     Tenant, or the filing of an involuntary petition by Tenant&#8217;s creditors,<br \/>\n     which involuntary petition remains undischarged for a period of thirty<br \/>\n     (30) days. If under applicable law, the trustee in bankruptcy or Tenant<br \/>\n     has the right to affirm this Lease and continue to perform the<br \/>\n     obligations of Tenant hereunder, such trustee or Tenant shall, in such<br \/>\n     time period as may be permitted by the bankruptcy court having<br \/>\n     jurisdiction, cure all defaults of Tenant hereunder outstanding as of<br \/>\n     the date of the affirmance of this Lease and provide to Landlord such<br \/>\n     adequate assurances as may be necessary to ensure Landlord of the<br \/>\n     continued performance of Tenant&#8217;s obligations under this Lease.<\/p>\n<p>     (6) RECEIVERSHIP. The employment of a receiver to take possession of<br \/>\n     substantially all of Tenant&#8217;s assets or Tenant&#8217;s leasehold of the<br \/>\n     Premises, if such appointment remains undismissed or undischarged for a<br \/>\n     period of thirty (30) days after the order therefor.<\/p>\n<p>     (7) ATTACHMENT. The attachment, execution or other judicial seizure of<br \/>\n     all or substantially all of Tenant&#8217;s assets or Tenant&#8217;s leasehold of the<br \/>\n     Premises, if such attachment or other seizure remains undismissed or<br \/>\n     undischarged for a period of thirty (30) days after the levy thereof.<\/p>\n<p>     (8) INSOLVENCY. The admission by Tenant in writing of its inability to<br \/>\n     pay its debts as they become due.<\/p>\n<p>B.   REMEDIES UPON DEFAULT<\/p>\n<p>     (1) TERMINATION. In the event of the occurrence of any event of default,<br \/>\n     Landlord shall have the right to give a written termination notice to<br \/>\n     Tenant, and on the day specified in such notice, Tenant&#8217;s right to<br \/>\n     possession shall terminate, and this Lease shall terminate unless on or<br \/>\n     before such date all Rent in arrears and all costs and expenses incurred<br \/>\n     by or on behalf of Landlord hereunder shall have been paid by Tenant and<br \/>\n     all other events of default of this Lease by Tenant at the time existing<br \/>\n     shall have been fully remedied to the satisfaction of Landlord. At any<br \/>\n     time after such termination, Landlord may recover possession of the<br \/>\n     Premises or any part thereof and expel and remove therefrom Tenant and<br \/>\n     any other person occupying the same, including any subtenant or<br \/>\n     subtenants notwithstanding Landlord&#8217;s consent to any sublease, by any<br \/>\n     lawful means, and again repossess and enjoy the Premises without<br \/>\n     prejudice to any of the remedies that Landlord may have under this<br \/>\n     Lease, or at law or equity by any reason of Tenant&#8217;s default or of such<br \/>\n     termination. Landlord hereby reserves the right, but shall not have the<br \/>\n     obligation to recognize the continued possession of any subtenant. The<br \/>\n     delivery or surrender to Landlord by or on behalf of Tenant of keys,<br \/>\n     entry codes or other means to bypass security at the Premises shall not<br \/>\n     terminate this Lease.<\/p>\n<p>     (2) CONTINUATION AFTER DEFAULT. Even though an event of default may have<br \/>\n     occurred, this Lease shall continue in effect for so long as Landlord<br \/>\n     does not terminate Tenant&#8217;s right to possession under Paragraph 26.B.(1)<br \/>\n     hereof, and Landlord may enforce all of Landlord&#8217;s rights and remedies<br \/>\n     under this Lease and at law or in equity, including without limitation,<br \/>\n     the right to recover Rent as it becomes due, and Landlord, without<br \/>\n     terminating this Lease, may exercise all of the rights and remedies of a<\/p>\n<p>                                      14<\/p>\n<p>     landlord under Section 1951.4 of the Civil Code of the State of<br \/>\n     California or any successor code section. Acts of maintenance,<br \/>\n     preservation or efforts to lease the Premises or the appointment of a<br \/>\n     receiver under application of Landlord to protect Landlord&#8217;s interest<br \/>\n     under this Lease or other entry by Landlord upon the Premises shall not<br \/>\n     constitute an election to terminate Tenant&#8217;s right to possession.<\/p>\n<p>     (3) INCREASED SECURITY DEPOSIT. If Tenant is in default under Paragraph<br \/>\n     26.A.(2) hereof and such default remains uncured for ten (10) days after<br \/>\n     such occurrence or beyond any applicable cure periods, whichever is late<br \/>\n     or such default occurs more than three times in any twelve (12) month<br \/>\n     period, Landlord may require that Tenant increase the Security Deposit<br \/>\n     to the amount of three times the current month&#8217;s Rent at the time of the<br \/>\n     most recent default.<\/p>\n<p>C. DAMAGES AFTER DEFAULT. Should Landlord terminate this Lease pursuant to<br \/>\nthe provisions of Paragraph 26.B.(i) hereof, Landlord shall have the rights<br \/>\nand remedies of a Landlord provided by Section 1951.2 of the Civil Code of<br \/>\nthe State of California, or any successor code sections. Upon such<br \/>\ntermination, in addition to any other rights and remedies to which Landlord<br \/>\nmay be entitled under applicable law or at equity, Landlord shall be entitled<br \/>\nto recover from Tenant: (1) the worth at the time of award of the unpaid Rent<br \/>\nand other amounts which had been earned at the time of termination, (2) the<br \/>\nworth at the time of award of the amount by which the unpaid Rent and other<br \/>\namounts that would have been earned after the date of termination until the<br \/>\ntime of award exceeds the amount of such Rent loss that Tenant proves could<br \/>\nhave been reasonably avoided; (3) the worth at the time of award of the<br \/>\namount by which the unpaid Rent and other amounts for the balance of the Term<br \/>\nafter the time of award exceeds the amount of such Rent loss that the Tenant<br \/>\nproves could be reasonably avoided; and (4) any other amount and court costs<br \/>\nnecessary to compensate Landlord for all detriment proximately caused by<br \/>\nTenant&#8217;s failure to perform Tenant&#8217;s obligations under this Lease or which,<br \/>\nin the ordinary course of things, would be likely to result therefrom. The<br \/>\n&#8220;worth at the time of award&#8221; as used in (1) and (2) above shall be computed<br \/>\nat the Applicable Interest Rate (defined below). The &#8220;worth at the time of<br \/>\naward&#8221; as used in (3) above shall be computed by discounting such amount at<br \/>\nthe Federal Discount Rate of the Federal Reserve Bank of San Francisco at the<br \/>\ntime of award plus one percent (1%). If this Lease provides for any periods<br \/>\nduring the Term during which Tenant is not required to pay Base Rent or if<br \/>\nTenant otherwise receives a Rent concession, then upon the occurrence of an<br \/>\nevent of default, Tenant shall owe to Landlord the full amount of such Base<br \/>\nRent or value of such Rent concession, plus interest at the Applicable<br \/>\nInterest Rate, calculated from the date of such Base Rent or Rent concession<br \/>\nwould have been payable.<\/p>\n<p>D. LATE CHARGE. In addition to its other remedies, Landlord shall have the<br \/>\nright without notice or demand to add to the amount of any payment required<br \/>\nto be made by Tenant hereunder, and which is not paid and received by<br \/>\nLandlord on or before the third day of each calendar month, an amount equal<br \/>\nto ten percent (10%) of the delinquency for each month or portion thereof<br \/>\nthat the delinquency remains outstanding to compensate Landlord for the loss<br \/>\nof the use of the amount not paid and the administrative costs caused by the<br \/>\ndelinquency, the parties agreeing that Landlord&#8217;s damage by virtue of such<br \/>\ndelinquencies would be extremely difficult and impracticable to compute and<br \/>\nthe amount stated herein represents a reasonable estimate thereof. Any waiver<br \/>\nby Landlord of any late charges or failure to claim the same shall not<br \/>\nconstitute a waiver of other late charges or any other remedies available to<br \/>\nLandlord.<\/p>\n<p>E. INTEREST. Interest shall accrue on all sums not paid when due hereunder at<br \/>\nthe lesser of eighteen percent (18%) per annum or the maximum interest rate<br \/>\nallowed by law (&#8220;Applicable Interest Rate&#8221;) from the due date until paid.<\/p>\n<p>F. REMEDIES CUMULATIVE. All rights, privileges and elections or remedies of the<br \/>\nparties are cumulative and not alternative, to the extent permitted by law and<br \/>\nexcept as otherwise provided herein.<\/p>\n<p>                                27.  LIENS<\/p>\n<p>     Tenant shall at all times keep the Premises and the Project free from<br \/>\nliens arising out of or related to work or services performed, materials or<br \/>\nsupplies furnished or obligations incurred by or on behalf of Tenant or in<br \/>\nconnection with work made, suffered or done by or on behalf of Tenant in or<br \/>\non the Premises or Project. If Tenant shall not, within ten (10) days<br \/>\nfollowing the imposition of any such lien, cause the same to be released of<br \/>\nrecord by payment or posting of a proper bond, Landlord shall have, in<br \/>\naddition to all other remedies provided herein and by law, the right, but not<br \/>\nthe obligation, to cause the same to be released by such means as Landlord<br \/>\nshall deem proper, including payment of the claim giving rise to such lien.<br \/>\nAll sums paid by Landlord on behalf of Tenant and all expenses incurred by<br \/>\nLandlord in connection therefor shall be payable to Landlord by Tenant on<br \/>\ndemand with interest at the Applicable Interest Rate as Additional Rent.<br \/>\nLandlord shall have the right at all times to post and keep posted on the<br \/>\nPremises any notices permitted or required by law, or which Landlord shall<br \/>\ndeem proper, for the protection of Landlord, the Premises, the Project and<br \/>\nany other party having an interest therein, from mechanics&#8217; and materialmen&#8217;s<br \/>\nliens, and Tenant shall give Landlord not less than ten (10) business days<br \/>\nprior written notice or the commencement of any work in the Premises or<br \/>\nProject which could lawfully give rise to a claim for mechanics&#8217; or<br \/>\nmaterialmen&#8217;s liens to permit Landlord to post and record a timely notice of<br \/>\nnon-responsibility, as Landlord may elect to proceed or as the law may from<br \/>\nlime to time provide, in accordance with the entry provisions set forth in<br \/>\nParagraph 14, or which purpose, if Landlord shall so determine, Landlord may<br \/>\nenter the Premises. Tenant shall not remove any such notice posted by<br \/>\nLandlord without Landlord&#8217;s consent, and in any event not before completion<br \/>\nof the work which could lawfully give rise to a claim for mechanics&#8217; or<br \/>\nmaterialmen&#8217;s liens.<\/p>\n<p>                              28.  SUBSTITUTION<\/p>\n<p>A. At any time after execution and commencement of this Lease, landlord may<br \/>\nsubstitute for the Premises other premises in the Project or owned by<br \/>\nLandlord in the vicinity of the Project (the &#8220;New Premises&#8221;) upon not less<br \/>\nthan sixty (60) days prior written notice, in which event the New Premises<br \/>\nshall be deemed to be the Premises for all purposes hereunder and this Lease<br \/>\nshall be deemed modified accordingly to reflect the new location and shall<br \/>\nremain in full force and effect as so modified, provided that:<\/p>\n<p>     (1) The New Premises shall be similar in area and in function for<br \/>\n     Tenant&#8217;s purposes; and<\/p>\n<p>     (2) If Tenant is occupying the Premises at the time of such<br \/>\n     substitution, Landlord shall pay the expense of physically moving Tenant,<br \/>\n     Tenant&#8217;s property and equipment to the New Premises and shall at<br \/>\n     Landlord&#8217;s sole cost, improve the New Premises with improvements<br \/>\n     substantially similar to those the Landlord has committed to provide or<br \/>\n     has provided in the Premises.<\/p>\n<p>                          29.  TRANSFERS BY LANDLORD<\/p>\n<p>     In the event of a sale or conveyance by Landlord of the Building or a<br \/>\nforeclosure by any creditor of Landlord, the same shall operate to release<br \/>\nLandlord from any liability upon any of the covenants or conditions, express<br \/>\nor implied, herein contained in favor of Tenant, to the extent required to be<br \/>\nperformed after the passing of title to Landlord&#8217;s successor-in-interest. In<br \/>\nsuch event, Tenant agrees to look solely to the responsibility of the<br \/>\nsuccessor-in-interest of Landlord under this Lease with respect to the<br \/>\nperformance of the covenants and duties of &#8220;Landlord&#8221; to be performed after<br \/>\nthe passing of title to Landlord&#8217;s successor-in-interest. This Lease shall<br \/>\nnot be affected by any such sale and Tenant agrees to attorn to the purchaser<br \/>\nor assignee. Landlord&#8217;s successor(s)-in-interest shall not have liability to<br \/>\nTenant with respect to the failure to perform any of the obligations of<br \/>\n&#8220;Landlord,&#8221; to the extent required to be performed prior to the date such<br \/>\nsuccessor(s)-in-interest became the owner of the Building, except that such<br \/>\nsuccessor shall be responsible for the proper disposition of the security<br \/>\ndeposit made by Tenant hereunder, but only to the extent that such successor<br \/>\nhas actually received the security deposit.<\/p>\n<p>                                      15<\/p>\n<p>                30.  RIGHT OF LANDLORD TO PERFORM TENANT&#8217;S COVENANTS<\/p>\n<p>     All covenants and agreements to be performed by Tenant under any of the<br \/>\nterms of this Lease shall be performed by Tenant at Tenant&#8217;s sole cost and<br \/>\nexpense and without any abatement of Rent. If Tenant shall fail to pay any<br \/>\nsum of money, other than Base Rent, required to be paid by Tenant hereunder<br \/>\nor shall fail to perform any other act on Tenant&#8217;s part to be performed<br \/>\nhereunder, including Tenant&#8217;s obligations under Paragraph 11 hereof, and such<br \/>\nfailure shall continue for fifteen (15) days after notice thereof by<br \/>\nLandlord, in addition to the other rights and remedies of Landlord, Landlord<br \/>\nmay make any such payment and perform any such act on Tenant&#8217;s part. In the<br \/>\ncase of an emergency, no prior notification by Landlord shall be required.<br \/>\nLandlord may take such actions without any obligation and without releasing<br \/>\nTenant from any of Tenant&#8217;s obligations. All sums so paid by Landlord and all<br \/>\nincidental costs incurred by Landlord and interest thereon at the Applicable<br \/>\nInterest Rate, from the date of payment by Landlord, shall be paid to<br \/>\nLandlord on demand as Additional Rent.<\/p>\n<p>                              31.  WAIVER<\/p>\n<p>     If either Landlord or Tenant waives the performance of any term,<br \/>\ncovenant or condition contained in this Lease, such waiver shall not be<br \/>\ndeemed to be a waiver of any subsequent breach of the same or any other term<br \/>\ncovenant or condition contained herein, or constitute a course of dealing<br \/>\ncontrary to the expressed terms of this Lease. The acceptance of Rent by<br \/>\nLandlord shall not constitute a waiver of any preceding breach by Tenant of<br \/>\nany term, covenant or condition of this Lease, regardless of Landlord&#8217;s<br \/>\nknowledge of such preceding breach at the time Landlord accepted such Rent.<br \/>\nFailure by Landlord to enforce any of the terms, covenants or conditions of<br \/>\nthis Lease for any length of time shall not be deemed to waive or decrease<br \/>\nthe right of Landlord to insist thereafter upon strict performance by Tenant.<br \/>\nWaiver by Landlord of any term, covenant or condition contained in this Lease<br \/>\nmay only be made by a written document signed by Landlord, based upon full<br \/>\nknowledge of the circumstances.<\/p>\n<p>                              32.  NOTICES<\/p>\n<p>     Each provision of this Lease or of any applicable governmental laws,<br \/>\nordinances, regulations and other requirements with reference to sending,<br \/>\nmailing, or delivery of any notice or the making of any payment by Landlord<br \/>\nor Tenant to the other shall be deemed to be complied with when and if the<br \/>\nfollowing steps are taken:<\/p>\n<p>A. RENT. All Rent and other payments required to be made by Tenant to Landlord<br \/>\nhereunder shall be payable to Landlord at Landlord&#8217;s Remittance Address set<br \/>\nforth in the Basic Lease Information, or at such other address as Landlord may<br \/>\nspecify from time to time by written notice delivered in accordance herewith.<br \/>\nTenant&#8217;s obligation to pay Rent and any other amounts to Landlord under the<br \/>\nterms of this Lease shall not be deemed satisfied until such Rent and other<br \/>\namounts have been actually received by Landlord.<\/p>\n<p>B. OTHER. All notices, demands, consents and approvals which may or are required<br \/>\nto be given by either party to the other hereunder shall be in writing and<br \/>\neither personally delivered, sent by commercial overnight courier, mailed,<br \/>\ncertified or registered, postage prepaid or sent by facsimile with confirmed<br \/>\nreceipt (and with an original sent by commercial overnight courier), and in each<br \/>\ncase addressed to the party to be notified at the Notice Address for such party<br \/>\nas specified in the Basic Lease Information or to such other place as the party<br \/>\nto be notified may from time to time designate by at least fifteen (15) days<br \/>\nnotice to the notifying party. Notices shall be deemed served upon receipt or<br \/>\nrefusal to accept delivery. Tenant appoints as its agent to receive the service<br \/>\nof all default notices and notice of commencement of unlawful detainer<br \/>\nproceedings the person in charge of or apparently in charge of occupying the<br \/>\nPremises at the time, and, if there is no such person, then such service may be<br \/>\nmade by attaching the same on the main entrance of the Premises.<\/p>\n<p>C. REQUIRED NOTICES. Tenant shall immediately notify Landlord in writing of any<br \/>\nnotice of a violation or a potential or alleged violation of any Regulation that<br \/>\nrelates to the Premises or the Project, or of any inquiry, investigation,<br \/>\nenforcement or other action that is instituted or threatened by any governmental<br \/>\nor regulatory agency against Tenant or any other occupant of the Premises, or<br \/>\nany claim that is instituted or threatened by any third party that relates to<br \/>\nthe Premises or the Project, of which Tenant has actual or constructive<br \/>\nknowledge.<\/p>\n<p>                              33.  ATTORNEYS&#8217; FEES<\/p>\n<p>     If Landlord places the enforcement of this Lease, or any part thereof,<br \/>\nor the collection of any Rent due, or to become due hereunder, or recovery of<br \/>\npossession of the Premises in the hands of an attorney, Tenant shall pay to<br \/>\nLandlord, upon demand, Landlord&#8217;s reasonable attorneys&#8217; fees and court costs,<br \/>\nwhether incurred without trial, at trial, appeal or review. In any action<br \/>\nwhich Landlord or Tenant brings to enforce its respective rights hereunder,<br \/>\nthe unsuccessful party shall pay all costs incurred by the prevailing party<br \/>\nincluding reasonable attorneys&#8217; fees, to be fixed by the court, and said<br \/>\ncosts incurred by the prevailing party including reasonable attorneys&#8217; fees,<br \/>\nto be fixed by the court, and said costs and attorney&#8217;s fees shall be a part<br \/>\nof the judgment in said action.<\/p>\n<p>                         34.  SUCCESSORS AND ASSIGNS<\/p>\n<p>     This Lease shall be binding upon and inure to the benefit of Landlord,<br \/>\nits successors and assigns, and shall be binding upon and inure to the<br \/>\nbenefit of Tenant, its successors, and to the extent assignment is approved<br \/>\nby Landlord as provided hereunder, Tenant&#8217;s assigns.<\/p>\n<p>                                35.  FORCE MAJEURE<\/p>\n<p>     If performance by a party of any portion of this Lease is made<br \/>\nimpossible by any prevention, delay, or stoppage caused by strikes, lockouts,<br \/>\nlabor disputes, acts of God, inability to obtain services, labor, or<br \/>\nmaterials or reasonable substitutes for those items, government actions,<br \/>\ncivil commotions, fire or other casualty, or other causes beyond the<br \/>\nreasonable control of the party obligated to perform. performance by that<br \/>\nparty for a period equal to the period of that prevention, delay, or stoppage<br \/>\nis excused. Tenant&#8217;s obligation to pay Rent, however, is not excused by this<br \/>\nParagraph 35.<\/p>\n<p>                              36.  SURRENDER OF PREMISES<\/p>\n<p>     Tenant shall, upon expiration or sooner termination of this Lease,<br \/>\nsurrender the Premises to Landlord in the same condition as existed on the<br \/>\ndate Tenant originally took possession thereof, reasonable wear and tear<br \/>\nexcepted, including, but not limited to, all interior walls cleaned, all<br \/>\ninterior painted surfaces repainted in the original color, all holes in the<br \/>\nwalls repaired, all carpets shampooed and cleaned, and all floors cleaned,<br \/>\nwaxed, and free of any Tenant-introduced marking or painting, all to the<br \/>\nreasonable satisfaction of Landlord. Tenant shall remove all of its debris<br \/>\nfrom the Project. At or before the time of surrender, Tenant shall comply<br \/>\nwith the terms of Paragraph 12.A. hereof with respect to Alterations to the<br \/>\nPremises and all other matters addressed in such Paragraph. If the Premises<br \/>\nare not so surrendered at the expiration or sooner termination of this Lease,<br \/>\nthe provisions of Paragraph 25 hereof shall apply. All keys to the Premises<br \/>\nor any part thereof shall be surrendered to Landlord upon expiration or<br \/>\nsooner termination of the Term. Tenant shall give written notice to Landlord<br \/>\nat least thirty (30) days prior to vacating the Premises and shall meet with<br \/>\nLandlord for a joint inspection of the Premises at the time of vacating, but<br \/>\nnothing contained herein shall be construed as an extension of the Term or as<br \/>\na consent by Landlord to any holding over by Tenant. In the event of Tenant&#8217;s<br \/>\nfailure to give such notice or participate in such joint inspection,<br \/>\nLandlord&#8217;s inspection at or after Tenant&#8217;s vacating the Premises shall<br \/>\nconclusively be deemed correct for purposes of determining Tenant&#8217;s<br \/>\nresponsibility for repairs and<\/p>\n<p>                                      16<\/p>\n<p>restoration. Any delay caused by Tenant&#8217;s failure to carry out its<br \/>\nobligations under this Paragraph 36 beyond the term hereof, shall constitute<br \/>\nunlawful and illegal possession of Premises under Paragraph 25 hereof.<\/p>\n<p>                              37.  PARKING<\/p>\n<p>     So long as Tenant is occupying the Premises, Tenant and Tenant&#8217;s Parties<br \/>\nshall have the right to use up to the number of parking spaces, if any,<br \/>\nspecified in the Basic Lease Information on an unreserved, nonexclusive,<br \/>\nfirst come, first served basis, for passenger-size automobiles, in the<br \/>\nparking areas in the Project designated from time to time by Landlord for use<br \/>\nin common by tenants of the Building.<\/p>\n<p>     Tenant may request additional parking spaces from time to time and if<br \/>\nLandlord in its sole discretion agrees to make such additional spaces<br \/>\navailable for use by Tenant, such spaces shall be provided on a<br \/>\nmonth-to-month unreserved and nonexclusive basis (unless otherwise agreed in<br \/>\nwriting by Landlord), and subject to such parking charges as Landlord shall<br \/>\ndetermine, and shall otherwise be subject to such terms and conditions as<br \/>\nLandlord may require.<\/p>\n<p>     Tenant shall at all times comply and shall cause all Tenant&#8217;s Parties<br \/>\nand visitors to comply with all Regulations and any rules and regulations<br \/>\nestablished from time to time by Landlord relating to parking at the Project,<br \/>\nincluding any keycard, sticker or other identification or entrance system,<br \/>\nand hours of operation, as applicable.<\/p>\n<p>     Landlord shall have no liability for any damage to property or other<br \/>\nitem located in the parking areas of the Project nor for any personal<br \/>\ninjuries or death arising out of the use of parking area in the Project by<br \/>\nTenant or any Tenant&#8217;s Parties. Without limiting the foregoing, if Landlord<br \/>\narranges for the parking areas to be operated by an independent contractor<br \/>\nnot affiliated with Landlord, Tenant acknowledges that Landlord shall have no<br \/>\nliability for claims arising through acts or omissions of such independent<br \/>\ncontractor. In all events, Tenant agrees to look first to its insurance<br \/>\ncarrier and to require that Tenant&#8217;s Parties look first to their respective<br \/>\ninsurance carriers for payment of any losses sustained in connection with any<br \/>\nuse of the parking areas.<\/p>\n<p>     Landlord reserves the right in a non-discriminatory manner, to assign<br \/>\nspecific space, and to reserve spaces for visitors, small cars, disabled<br \/>\npersons or for other tenants or guests, and Tenant shall not park and shall<br \/>\nnot allow Tenant&#8217;s Parties to park in any such assigned or reserved spaces.<br \/>\nTenant may validate visitor parking by such method as Landlord may approve,<br \/>\nat the validation rate from time to time generally applicable to visitor<br \/>\nparking. Landlord also reserves the right to alter, modify, relocate or close<br \/>\nall or any portion of the parking areas in order to make repairs or perform<br \/>\nmaintenance service, or to restripe or renovate the parking areas, or if<br \/>\nrequired by casualty, condemnation, act of God, Regulations or for any other<br \/>\nreason deemed reasonable by Landlord.<\/p>\n<p>     Landlord reserves the right to impose a charge for parking at a future<br \/>\ntime, such charge not to exceed fifty dollars ($50.00) per parking space per<br \/>\nmonth.<\/p>\n<p>                         38.  MISCELLANEOUS<\/p>\n<p>A. GENERAL. The term &#8220;Tenant&#8221; or any pronoun used in place thereof shall<br \/>\nindicate and include the masculine or feminine, the singular or plural number,<br \/>\nindividuals, firms or corporations, and their respective successors, executors,<br \/>\nadministrators and permitted assigns, according to the context hereof.<\/p>\n<p>B. TIME. Time is of the essence regarding this Lease and all of its provisions.<\/p>\n<p>C. CHOICE OF LAW. This Lease shall in all respects be governed by the laws of<br \/>\nthe State of California.<\/p>\n<p>D. ENTIRE AGREEMENT. This Lease, together with its Exhibits, addenda and<br \/>\nattachments and the Basic Lease Information, contains all the agreements of the<br \/>\nparties hereto and supersedes any previous negotiations. There have been no<br \/>\nrepresentations made by the Landlord or understandings made between the parties<br \/>\nother than those set forth in this Lease and its Exhibits, addenda and<br \/>\nattachments and the Basic Lease Information.<\/p>\n<p>E. MODIFICATION. This Lease may not be modified except by a written instrument<br \/>\nsigned by the parties hereto. Tenant accepts the area of the Premises as<br \/>\nspecified in the Basic Lease Information as the approximate area of the Premises<br \/>\nfor all purposes under this Lease, and acknowledges and agrees that no other<br \/>\ndefinition of the area (rentable, usable or otherwise) of the Premises shall<br \/>\napply. Tenant shall in no event be entitled to a recalculation of the square<br \/>\nfootage of the Premises, rentable, usable or otherwise, and no recalculation, if<br \/>\nmade, irrespective of its purpose, shall reduce Tenant&#8217;s obligations under this<br \/>\nLease in any manner, including without limitation the amount of Base Rent<br \/>\npayable by Tenant or Tenant&#8217;s Proportionate Share of the Building and of the<br \/>\nProject. Unless required by any Regulation, no alteration, addition, repair or<br \/>\nmodification of or to the Premises, Building or Project shall materially<br \/>\ndecrease the size of the Premises.<\/p>\n<p>F. SEVERABILITY. If, for any reason whatsoever, any of the provisions hereof<br \/>\nshall be unenforceable or ineffective, all of the other provisions shall be and<br \/>\nremain in full force and effect.<\/p>\n<p>G. RECORDATION. Tenant shall not record this Lease or a short form memorandum<br \/>\nhereof.<\/p>\n<p>H. EXAMINATION OF LEASE. Submission of this Lease to Tenant does not constitute<br \/>\nan option or offer to lease and this Lease is not effective otherwise until<br \/>\nexecution and delivery by both Landlord and Tenant.<\/p>\n<p>I. ACCORD AND SATISFACTION. No payment by Tenant of a lesser amount than the<br \/>\ntotal Rent due nor any endorsement on any check or letter accompanying any check<br \/>\nor payment of Rent shall be deemed an accord and satisfaction of full payment of<br \/>\nRent, and Landlord may accept such payment without prejudice to Landlord&#8217;s right<br \/>\nto recover the balance of such Rent or to pursue other remedies. All offers by<br \/>\nor on behalf of Tenant of accord and satisfaction are hereby rejected in<br \/>\nadvance.<\/p>\n<p>J. EASEMENTS. Landlord may grant easements on the Project and dedicate for<br \/>\npublic use portions of the Project without Tenant&#8217;s consent; provided that no<br \/>\nsuch grant or dedication shall materially interfere with Tenant&#8217;s Permitted Use<br \/>\nof the Premises. Upon Landlord&#8217;s request, Tenant shall execute, acknowledge and<br \/>\ndeliver to Landlord documents, instruments, maps and plats necessary to<br \/>\neffectuate Tenant&#8217;s covenants hereunder.<\/p>\n<p>K. DRAFTING AND DETERMINATION PRESUMPTION. The parties acknowledge that this<br \/>\nLease has been agreed to by both the parties, that both Landlord and Tenant have<br \/>\nconsulted with attorneys with respect to the terms of this Lease and that no<br \/>\npresumption shall be created against Landlord because Landlord drafted this<br \/>\nLease. Except as otherwise specifically set forth in this Lease, with respect to<br \/>\nany consent, determination or estimation of Landlord required or allowed in this<br \/>\nLease or requested of Landlord, Landlord&#8217;s consent,<\/p>\n<p>                                      17<\/p>\n<p>determination or estimation shall be given or made solely by Landlord in<br \/>\nLandlord&#8217;s good faith opinion, whether or not objectively reasonable. If<br \/>\nLandlord fails to respond to any request for its consent within the time<br \/>\nperiod, if any, specified in this Lease, Landlord shall be deemed to have<br \/>\ndisapproved such request.<\/p>\n<p>L. EXHIBITS. The Basic Lease Information, and the Exhibits, addenda and<br \/>\nattachments attached hereto are hereby incorporated herein by this reference and<br \/>\nmade a part of this Lease as though fully set forth herein.<\/p>\n<p>M. NO LIGHT, AIR OR VIEW EASEMENT. Any diminution or shutting off of light, air<br \/>\nor view by any structure which may be erected on lands adjacent to or in the<br \/>\nvicinity of the Building shall in no way affect this Lease or impose any<br \/>\nliability on Landlord.<\/p>\n<p>N. NO THIRD PARTY BENEFIT. This Lease is a contract between Landlord and Tenant<br \/>\nand nothing herein is intended to create any third party benefit.<\/p>\n<p>O. QUIET ENJOYMENT. Upon payment by Tenant of the Rent, and upon the observance<br \/>\nand performance of all of the other covenants, terms and conditions on Tenant&#8217;s<br \/>\npart to be observed and performed, Tenant shall peaceably and quietly hold and<br \/>\nenjoy the Premises for the term hereby demised without hindrance or interruption<br \/>\nby Landlord or any other person or persons lawfully or equitably claiming by,<br \/>\nthrough or under Landlord, subject, nevertheless, to all of the other terms and<br \/>\nconditions of this Lease. Landlord shall not be liable for any hindrance,<br \/>\ninterruption, interference or disturbance by other tenants or third persons, nor<br \/>\nshall Tenant be released from any obligations under this Lease because of such<br \/>\nhindrance, interruption, interference or disturbance.<\/p>\n<p>P. COUNTERPARTS. This Lease may be executed in any number of counterparts, each<br \/>\nof which shall be deemed an original.<\/p>\n<p>Q. MULTIPLE PARTIES. If more than one person or entity is named herein as<br \/>\nTenant, such multiple parties shall have joint and several responsibility to<br \/>\ncomply with the terms of this Lease.<\/p>\n<p>R. PRORATIONS. Any Rent or other amounts payable to Landlord by Tenant hereunder<br \/>\nfor any fractional month shall be prorated based on a month of 30 days. As used<br \/>\nherein, the term &#8220;fiscal year&#8221; shall mean the calendar year or such other fiscal<br \/>\nyear as Landlord may deem appropriate.<\/p>\n<p>S. BROKERS. Landlord shall pay the fee or commission of NL Associates (&#8220;Broker&#8221;)<br \/>\nbased on Landlord&#8217;s Published commission schedule, which shall not exceed five<br \/>\ndollars ($5.00) per rentable square foot. Landlord and Tenant each represent and<br \/>\nwarrant to the other that they have had no dealings with any real estate broker<br \/>\nor agent in connection with the negotiation of this Lease excepting only the<br \/>\nBroker, and that they know of no other real estate broker or agent who is<br \/>\nentitled to a commission in connection with this Lease. Each party agrees to<br \/>\nindemnify and defend the other party against and hold the other party harmless<br \/>\nfrom any and all claims, demands, losses, liabilities, lawsuits, judgments,<br \/>\ncosts and expenses with respect to any leasing commission or equivalent<br \/>\ncompensation alleged to be owing on account of any dealings with any real estate<br \/>\nbroker or agent other than the Broker, occurring by, through or under the<br \/>\nindemnifying party.<\/p>\n<p>                          39.  ADDITIONAL PROVISIONS<\/p>\n<p>A. CANCELLATION FOR LARGER PREMISES. It is hereby agreed and understood that in<br \/>\nthe event Tenant requires additional space and intends to vacate the herein<br \/>\ndemised Premises, and Landlord and Tenant execute a new lease agreement for a<br \/>\nlarger space in the Project that is at least 30,000 square feet, this Lease will<br \/>\nbe canceled as of the commencement date of the new lease covering the larger<br \/>\nspace, provided that Tenant is not, and has not been more than onetime per Year,<br \/>\nin default of the terms of the Lease beyond any a applicable cure periods and<br \/>\nprovided that on the commencement date of the new lease, Tenant delivers the<br \/>\nherein demised Premises to Landlord in the condition required by this Lease<br \/>\nAgreement. Upon such cancellation, both parties shall be released from any<br \/>\nobligations accrued prior to such cancellation. The terms and conditions of the<br \/>\nnew lease shall be at the same rental and terms and conditions as is offered<br \/>\nother tenants for comparable space in the Project as determined by Landlord. Any<br \/>\nsecurity deposit or prepaid rental Tenant may be entitled to shall be credited<br \/>\nto Tenant under the new lease.<\/p>\n<p>B. ADDITIONAL AIR CONDITIONING UNIT. Tenant shall, as part of Exhibit C, have<br \/>\nthe right to install an additional air conditioning unit in the Premises. Tenant<br \/>\nshall be responsible for all costs of said unit including installation, repair<br \/>\nand maintenance, and removal upon expiration of this Lease. This unit shall have<br \/>\na separate electrical meter, installed and paid for by Tenant, and all<br \/>\nelectrical usage shall be paid for by Tenant.<\/p>\n<p>                                      18<\/p>\n<p>                           40.  JURY TRIAL WAIVER<\/p>\n<p>     EACH PARTY HERETO (WHICH INCLUDES ANY ASSIGNEE,. SUCCESSOR HEIR OR<br \/>\nPERSONAL REPRESENTATIVE OF A PARTY) SHALL NOT SEEK A JURY TRIAL, HEREBY<br \/>\nWAIVES TRIAL BY JURY, AND HEREBY FURTHER WAIVES ANY OBJECTION TO VENUE IN THE<br \/>\nCOUNTY IN WHICH THE BUILDING IS LOCATED, AND AGREES AND CONSENTS TO PERSONAL<br \/>\nJURISDICTION OF THE COURTS OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IN<br \/>\nANY ACTION OR PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO AGAINST<br \/>\nTHE OTHER ON ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED<br \/>\nWITH THIS LEASE. THE RELATIONSHIP OF LANDLORD AND TENANT, TENANTS USE OR<br \/>\nOCCUPANCY OF THE PREMISES, OR ANY CLAIM OF INJURY OR DAMAGE, OR THE<br \/>\nENFORCEMENT OF ANY REMEDY UNDER ANY STATUTE, EMERGENCY OR OTHERWISE, WHETHER<br \/>\nANY OF THE FOREGOING IS BASED ON THIS LEASE OR ON TORT LAW. EACH PARTY<br \/>\nREPRESENTS THAT IT HAS HAD THE OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL<br \/>\nCONCERNING THE EFFECT OF THIS PARAGRAPH 40. THE PROVISIONS OF THIS PARAGRAPH<br \/>\n40 SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS LEASE.<\/p>\n<p>     IN WITNESS WHEREOF, the parties hereto have executed this Lease as of<br \/>\nthe day and the year first above written.<\/p>\n<p>                                    LANDLORD<\/p>\n<p>                                    Spieker Properties, L.P.<br \/>\n                                    a California limited partnership<\/p>\n<p>                                    By:  Spieker Properties, Inc.,<br \/>\n                                         a Maryland corporation,<br \/>\n                                         its general partner<\/p>\n<p>                                    By:  \/s\/ JOSEPH D. RUSSELL, JR.<br \/>\n                                         &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n                                         Joseph D. Russell, Jr.<br \/>\n                                         Its: Regional Senior Vice President<\/p>\n<p>                                    Date: August 25, 1998<\/p>\n<p>                                    TENANT<\/p>\n<p>                                    Heuristic Physics Laboratories, Inc.<br \/>\n                                    a California corporation<\/p>\n<p>                                    By:  \/s\/ DAVID Y. LEPEJIAN<br \/>\n                                         &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<br \/>\n                                         David Y. Lepejian<br \/>\n                                         Its: President and CEO<\/p>\n<p>                                    Date: August 20, 1998<\/p>\n<p>                                      19<\/p>\n<p>ADDENDUM TO LEASE AGREEMENT DATED AUGUST 19, 1998, BETWEEN SPIEKER<br \/>\nPROPERTIES, L.P., A CALIFORNIA LIMITED PARTNERSHIP, AS LANDLORD, AND<br \/>\nHEURISTIC PHYSICS LABORATORIES, INC., A CALIFORNIA CORPORATION, AS TENANT FOR<br \/>\nAN APPROXIMATELY 12,516 RENTABLE SQUARE FOOT PREMISES KNOWN AS SUITE 400,<br \/>\n2033 GATEWAY PLACE, SAN JOSE, CALIFORNIA.<\/p>\n<p>ADDENDUM 1 &#8211; PARAGRAPH 6 &#8211; RENT. Rent for the Premises is as follows:<\/p>\n<p>Months 01 &#8211; 12              $29,788.00 per month plus operating expenses per<br \/>\n                            Paragraph 7 of this Lease Agreement. Operating<br \/>\n                            expenses through December 1998 are estimated to be<br \/>\n                            $8,761.00 per month. Direct operating expenses are<br \/>\n                            estimated a year in advance and collected on a<br \/>\n                            monthly basis. Any increases or decreases necessary<br \/>\n                            will be made at the end of the operating year.<\/p>\n<p>Months 13 &#8211; 24:             $31,330.00 per month plus operating expenses per<br \/>\n                            Paragraph 7 of this Lease Agreement.<\/p>\n<p>Months 25 &#8211; 36:             $32,934.00 per month plus operating expenses per<br \/>\n                            Paragraph 7 of this Lease Agreement.<\/p>\n<p>Months 37 &#8211; 48:             $34,601.00 per month plus operating expenses per<br \/>\n                            Paragraph 7 of this Lease Agreement.<\/p>\n<p>Months 49 &#8211; 60:             $36,336.00 per month plus operating expenses per<br \/>\n                            Paragraph 7 of this Lease Agreement.<\/p>\n<p>Months 61 &#8211; 72:             $38,140.00 per mouth plus operating expenses per<br \/>\n                            Paragraph 7 of this Lease Agreement.<\/p>\n<p>Months 73 &#8211; 84:             $40,016.00 per month plus operating expenses per<br \/>\n                            Paragraph 7 of this Lease Agreement.<\/p>\n<p>                                      20<\/p>\n<p>                                    EXHIBIT A<br \/>\n                              RULES AND REGULATIONS<\/p>\n<p>1.   Driveways, sidewalks, halls, passages, exits, entrances, elevators,<br \/>\n     escalators and stairways shall not be obstructed by tenants or used by<br \/>\n     tenants for any purpose other than for ingress to and egress from their<br \/>\n     respective premises. The driveways, sidewalks, halls, passages, exits,<br \/>\n     entrances, elevators and stairways are not for the use of the general<br \/>\n     public and Landlord shall in all cases retain the right to control and<br \/>\n     prevent access thereto by all persons whose presence; in the judgment of<br \/>\n     Landlord, shall be prejudicial to the safety, character, reputation and<br \/>\n     interests of the Building, the Project and its tenants, provided that<br \/>\n     nothing herein contained shall be construed to prevent such access to<br \/>\n     persons with whom any tenant normally deals in the ordinary course of<br \/>\n     such tenant&#8217;s business unless such persons are engaged in illegal<br \/>\n     activities. No tenant, and no employees or invitees of any tenant, shall<br \/>\n     go upon the roof of any Building, except as authorized by Landlord. No<br \/>\n     tenant, and no employees or invitees of any tenant shall move any common<br \/>\n     area furniture without Landlord&#8217;s consent.<\/p>\n<p>2.   No sign, placard, banner, picture, name, advertisement or notice visible<br \/>\n     from the exterior of the Premises or the Building or the common areas of<br \/>\n     the Building shall be inscribed, painted, affixed, installed or<br \/>\n     otherwise displayed by Tenant either on its Premises or any part of the<br \/>\n     Building or Project without the prior written consent of Landlord in<br \/>\n     Landlord&#8217;s sole and absolute discretion. Landlord shall have the right<br \/>\n     to remove any such sign, placard, banner, picture, name, advertisement,<br \/>\n     or notice without notice to and at the expense of Tenant, which were<br \/>\n     installed or displayed in violation of this rule. If Landlord shall have<br \/>\n     given such consent to Tenant at any time, whether before or after the<br \/>\n     execution of Tenant&#8217;s Lease, such consent shall in no way operate as a<br \/>\n     waiver or release of any of the provisions hereof or of the Lease, and<br \/>\n     shall be deemed to relate only to the particular sign, placard, banner,<br \/>\n     picture, name, advertisement or notice so consented to by Landlord and<br \/>\n     shall not be construed as dispensing with the necessity of obtaining the<br \/>\n     specific written consent of Landlord with respect to any other such<br \/>\n     sign, placard, banner, picture, name, advertisement or notice.<\/p>\n<p>     All approved signs or lettering on doors and walls shall be printed,<br \/>\n     painted, affixed or inscribed at the expense of Tenant by a person or<br \/>\n     vendor approved by Landlord and shall be removed by Tenant at the time of<br \/>\n     vacancy at Tenant&#8217;s expense.<\/p>\n<p>3.   The directory of the Building or Project will be provided exclusively for<br \/>\n     the display of the name and location of tenants only and Landlord reserves<br \/>\n     the right to charge for the use thereof and to exclude any other names<br \/>\n     therefrom.<\/p>\n<p>4.   No curtains, draperies, blinds, shutters, shades, screens or other<br \/>\n     coverings, awnings, hangings or decorations shall be attached to, hung<br \/>\n     or placed in, or used in connection with, any window or door on the<br \/>\n     Premises without the prior written consent of Landlord. In any event<br \/>\n     with the prior written consent of Landlord, all such items shall be<br \/>\n     installed inboard of Landlord&#8217;s standard window covering and shall in no<br \/>\n     way be visible from the exterior of the Building. All electrical ceiling<br \/>\n     fixtures hung in offices or spaces along the perimeter of the Building<br \/>\n     must be fluorescent or of a quality, type, design, and bulb color<br \/>\n     approved by Landlord. No articles shall be placed or kept on the window<br \/>\n     sills so as to be visible from the exterior of the Building. No articles<br \/>\n     shall be placed against glass partitions or doors which Landlord<br \/>\n     considers unsightly from outside Tenant&#8217;s Premises.<\/p>\n<p>5.   Landlord reserves the right to exclude from the Building and the Project,<br \/>\n     between the hours of 6 p.m. and 8 am. and at all hours on Saturdays,<br \/>\n     Sundays and legal holidays , all persons who are not tenants or their<br \/>\n     accompanied guests in the Building. Each tenant shall be responsible for<br \/>\n     all persons for whom it allows to enter the Building or the Project and<br \/>\n     shall be liable to Landlord for all acts of such persons.<\/p>\n<p>     Landlord and its agents shall M be liable for damages for any error<br \/>\n     concerning the admission to, or exclusion from the Building or the Project<br \/>\n     of any person.<\/p>\n<p>     During the continuance of any invasion, mob, riot, public excitement or<br \/>\n     other circumstance rendering such action advisable in Landlord&#8217;s opinion,<br \/>\n     Landlord reserves the right (but shall not be obligated) to prevent access<br \/>\n     to the Building and the Project during the continuance of that event by any<br \/>\n     means it considers appropriate for the safety of tenants and protection of<br \/>\n     the Building, property in the Building and the Project.<\/p>\n<p>6.   All cleaning and janitorial services for the Building and the Premises<br \/>\n     shall be provided exclusively through Landlord. Except with the written<br \/>\n     consent of Landlord, no person or persons other than dim approved by<br \/>\n     Landlord shall be permitted to enter the Building for the purpose of<br \/>\n     cleaning the same. Tenant shall not cause any unnecessary labor by reason<br \/>\n     of Tenant&#8217;s carelessness or indifference in the preservation of good order<br \/>\n     and cleanliness of its Premises. Landlord shall in no way be responsible to<br \/>\n     Tenant for any loss of property on the Premises, however occurring, or for<br \/>\n     any damage done to Tenant&#8217;s property by the janitor or any other employee<br \/>\n     or any other person.<\/p>\n<p>7.   Tenant shall see that all doors of its Promises are closed and securely<br \/>\n     locked and must observe strict care and caution that all water faucets or<br \/>\n     water apparatus, coffee pots or other heat-generating devices are entirely<br \/>\n     shut off before Tenant or its employees leave the Premises, and that all<br \/>\n     utilities shall likewise be carefully shut off, so as to prevent waste or<br \/>\n     damage. Tenant shall be responsible for any damage or injuries sustained by<br \/>\n     other tenants or occupants of the Building or Project or by Landlord for<br \/>\n     noncompliance with this rule. On multiple-tenancy floors, all tenants shall<br \/>\n     keep the door or doors to the Building corridors closed at all times except<br \/>\n     for ingress and egress.<\/p>\n<p>8.   Tenant shall- not use any method of heating or air-conditioning other than<br \/>\n     that supplied by Landlord. As more specifically provided in Tenant&#8217;s lease<br \/>\n     of the premises, Tenant shall not wane electricity, water or<br \/>\n     air-conditioning and agrees to cooperate fully with Landlord to assure the<br \/>\n     most effective operation of the Building&#8217;s heating and air-conditioning,<br \/>\n     and shall refrain from attempting to adjust any controls other than room<br \/>\n     thermostats installed for Tenant&#8217;s use.<\/p>\n<p>9.   Landlord will furnish Tenant free of charge with two keys to each door in<br \/>\n     the Premises. Landlord may make a reasonable charge for any additional<br \/>\n     keys, and Tenant shall not make or have made additional keys. Tenant shall<br \/>\n     not alter any lock or access device or install a new or additional lock or<br \/>\n     seem device or bolt on any door of its Premises, without the prior written<br \/>\n     consent of Landlord. If Landlord shall give its consent, Tenant shall in<br \/>\n     each case furnish Landlord with a key for any such lock. Tenant, upon the<br \/>\n     termination of its tenancy, shall deliver to Landlord the keys for all<br \/>\n     doors which have been furnished to Tenant, and in the event of loss of any<br \/>\n     keys so furnished, &#8220;I pay Landlord therefor.<\/p>\n<p>                              Exhibit A &#8211; Page 1<\/p>\n<p>10.  The restrooms, toilets, urinals, wash bowls and other apparatus shall not<br \/>\n     be used for any purpose other than that for which they were constructed and<br \/>\n     no foreign substance of any kind whatsoever shall be thrown into them. The<br \/>\n     expense of any breakage, stoppage, or damage resulting from violation of<br \/>\n     this rule shall be borne by the tenant who, or whose employees or invitees,<br \/>\n     shall have caused the breakage, stoppage, or damage.<\/p>\n<p>11.  Tenant shall not use or keep in or on the Premises, the Building or the<br \/>\n     Project any kerosene, gasoline. or inflammable or combustible fluid or<br \/>\n     material.<\/p>\n<p>12.  Tenant shall not use, keep or permit to be used or kept in its Premises any<br \/>\n     foul or noxious gas or substance. Tenant shall not allow the Premises to be<br \/>\n     occupied or used in a manner offensive or objectionable to Landlord or<br \/>\n     other occupants of the Building by reason of noise, odors and\/or vibrations<br \/>\n     or interfere in any way with other tenants or those having business<br \/>\n     therein, nor shall any animals or birds be brought or kept in or about the<br \/>\n     Premises, the Building. or die Project.<\/p>\n<p>13.  No cooking shall be done or permitted by any tenant on die Premises, except<br \/>\n     that use by die tenant of Underwriters&#8217; Laboratory (UL) approved equipment,<br \/>\n     refrigerators and microwave ovens may be used in the Premises for die<br \/>\n     preparation of coffee, tea. hot chocolate and similar beverages, storing<br \/>\n     and heating food for tenants and their employees shall be permitted. All<br \/>\n     uses must be in accordance with all applicable federal, state and city<br \/>\n     laws, codes, ordinances, rules and regulations and the Lease.<\/p>\n<p>14.  Except with the prior written consent of Landlord, Tenant shall not sell<br \/>\n     or permit the sale, at retail. of newspapers, magazines. periodicals,<br \/>\n     theater tickets or any other goods or merchandise in or on the Premises,<br \/>\n     nor shall Tenant carry on, or permit or allow any employee or other<br \/>\n     person to carry on, the business of stenography, typewriting or any<br \/>\n     similar business in or from the Premises for the service or<br \/>\n     accommodation of occupants of any other portion of the Building, nor<br \/>\n     shall the Premises be used for the storage of merchandise or for<br \/>\n     manufacturing of any kind, or the business of a public barber shop,<br \/>\n     beauty parlor, nor shall die Premises be used for any illegal improper,<br \/>\n     immoral or objectionable purpose, or any business or activity other than<br \/>\n     that specifically provided for in such Tenant&#8217;s Lease. Tenant shall not<br \/>\n     accept hairstyling, barbering, shoeshine, nail, massage or similar<br \/>\n     services in the Premises or common areas except as authorized by<br \/>\n     Landlord.<\/p>\n<p>15.  If Tenant requires telegraphic, telephonic, telecommunications, data<br \/>\n     processing. burglar alarm or similar services, it shall first obtain, and<br \/>\n     comply with, Landlord&#8217;s instructions in their installation. The cost of<br \/>\n     purchasing. installation and maintenance of such services shall be borne<br \/>\n     solely by Tenant<\/p>\n<p>16.  Landlord will direct electricians as to where and how telephone, telegraph<br \/>\n     and electrical wires are to be introduced or installed. No boring or<br \/>\n     cutting for wires will be allowed without the prior written consent of<br \/>\n     Landlord. The location of burglar alarms. telephone call boxes and other<br \/>\n     office equipment affixed to the Premises shall be subject to the prior<br \/>\n     written approval of Landlord.<\/p>\n<p>17.  Tenant shall not install any radio or television antenna, satellite dish,<br \/>\n     loudspeaker or any other device on the exterior walls or the roof of the<br \/>\n     Building, without Landlord&#8217;s consent. Tenant shall wt interfere with radio<br \/>\n     or television broadcasting or reception from or in the Building, the<br \/>\n     Project or elsewhere.<\/p>\n<p>18.  Tenant shall not mark or drive nails, screws or drill into the<br \/>\n     partitions, woodwork or drywall or in any way deface the Premises or any<br \/>\n     part thereof without Landlord&#8217;s consent. Tenant may install nails and<br \/>\n     screws in areas of the Premises that have been identified for those<br \/>\n     purposes to Landlord by Tenant at the time those walls or partitions<br \/>\n     were installed in the Premises. Tenant shall not lay linoleum, tile,<br \/>\n     carpet or any other floor covering so that the same shall be affixed to<br \/>\n     the floor of its Premises in any manner except as approved in writing by<br \/>\n     Landlord. The expense: of repairing any damage resulting from a<br \/>\n     violation of this rule or the removal of any floor covering shall be<br \/>\n     borne by the tenant by whom, or by whose contractors, employees or<br \/>\n     invitees, the damage shall have been caused<\/p>\n<p>19.  No furniture, freight, equipment, materials, supplies, packages,<br \/>\n     merchandise or other property will be received in the Building or carried<br \/>\n     up or down the elevators except between such hours and in such elevators as<br \/>\n     shall be designated by Landlord.<\/p>\n<p>     Tenant shall not place a load upon any floor of its Premises which exceeds<br \/>\n     the load per square foot which such floor was designed to carry or which is<br \/>\n     allowed by law. Landlord shall have the right to prescribe the weight, size<br \/>\n     and position of all safes, furniture or other heavy equipment brought to<br \/>\n     the Building. Safes or other heavy objects shall, if considered necessary<br \/>\n     by Landlord, stand on wood strips of such thickness as determined by<br \/>\n     Landlord to be necessary to properly distribute the weight thereof.<br \/>\n     Landlord will not be responsible for loss of or damage to any such safe,<br \/>\n     equipment or property from any cause, and all damage done to the Building<br \/>\n     by moving or maintaining any such safe, equipment or other property shall<br \/>\n     be repaired at the expense of Tenant.<\/p>\n<p>     Business machines and mechanical equipment belonging to Tenant which came<br \/>\n     noise or vibration dud may be transmitted to the structure of the Building<br \/>\n     or to any space therein to such a degree as to be objectionable to Landlord<br \/>\n     or to any tenants in the Building shall be placed and maintained by Tenant,<br \/>\n     at Tenant&#8217;s expense, on vibration eliminators or other devices sufficient<br \/>\n     to eliminate noise or vibration. The persons employed to move such<br \/>\n     equipment in or out of the Building must be acceptable to Landlord.<\/p>\n<p>20.  Tenant &#8220;I not install, maintain or operate upon its Premises any vending<br \/>\n     machine without die written consent of Landlord.<\/p>\n<p>21.  There shall-not be used in any space, or in the public areas of the Project<br \/>\n     either by Tenant or others, any hand trucks except those equipped with<br \/>\n     rubber tires and side guards or such other material handling equipment as<br \/>\n     Landlord may approve. Tenants using hand trucks shall be required to use<br \/>\n     the freight elevator, or such elevator as Landlord shall designate. No<br \/>\n     other vehicles of any kind shall be brought by Tenant into or kept in or<br \/>\n     about its Premises.<\/p>\n<p>22.  Each tenant shall store all its a-Ash and garbage within the interior of<br \/>\n     the Premises. Tenant shall not place in the trash boxes or receptacles any<br \/>\n     personal trash or any material that my not or cannot be disposed of in the<br \/>\n     ordinary and customary manner of removing and disposing of trash and<br \/>\n     garbage in the city, without violation of any law or ordinance governing<br \/>\n     such disposal. All trash, garbage and refuse disposal shall be made only<br \/>\n     through entry-ways and elevators provided for such purposes and at such<br \/>\n     times as Landlord shall designate. If the Building has implemented a<br \/>\n     building-wide recycling program for tenants, Tenant shall use good faith<br \/>\n     efforts to participate in said program.<\/p>\n<p>                              Exhibit A &#8211; Page 2<\/p>\n<p>23.  Canvassing. soliciting, distribution of handbills or any other written<br \/>\n     material peddling in the Building and the Project are prohibited and each<br \/>\n     tenant shall cooperate to prevent the same. No tenant shall make<br \/>\n     room-to-room solicitation of business from other tenants in the Building or<br \/>\n     the Project, without the written consent of Landlord.<\/p>\n<p>24.  Landlord &#8220;I have the right exercisable without notice and without liability<br \/>\n     to any tenant, to change the name and address of the Building and the<br \/>\n     Project.<\/p>\n<p>25.  Landlord reserves the right to exclude or expel from the Project any person<br \/>\n     who, in Landlord&#8217;s judgment, is under the influence of alcohol or drugs: or<br \/>\n     who commits any act in violation of any of these Rules and Regulations.<\/p>\n<p>26.  Without the prior written consent of Landlord, Tenant shall not use the<br \/>\n     name of die Building or the Project or any photograph or other likeness of<br \/>\n     the Building or the Project in connection with. or in promoting or<br \/>\n     advertising, Tenant&#8217;s business except that Tenant may include the Building<br \/>\n     or Project&#8217;s name in Tenant&#8217;s address.<\/p>\n<p>27.  Tenant shall comply with all safety, fire protection and evacuation<br \/>\n     procedures and regulations established by Landlord or any governmental<br \/>\n     agency.<br \/>\n28.  Tenant assumes any and all responsibility for protecting its Premises from<br \/>\n     theft, robbery and pilferage, which includes keeping doors locked and other<br \/>\n     means of entry to the Premises closed.<\/p>\n<p>29.  The requirements of Tenant will be attended to only upon appropriate<br \/>\n     application at the office of the Building by an authorized individual.<br \/>\n     Employees of Landlord shall not perform any work or do anything outside of<br \/>\n     their regular duties unless under special instructions from Landlord, mid<br \/>\n     no employees of Landlord will admit any person (tenant or otherwise) to any<br \/>\n     office without specific instructions from Landlord.<\/p>\n<p>30.  Landlord reserves the right to designate the use of the parking spaces<br \/>\n     on the Project. Tenant or Tenant&#8217;s guests shall park between designated<br \/>\n     parking lines only, and shall not occupy two parking spaces with one<br \/>\n     car. Parking spaces shall be for passenger vehicles only; no boats,<br \/>\n     bucks, trailers, recreational vehicles or other types of vehicles may be<br \/>\n     parked in the parking areas (except that trucks may be loaded and<br \/>\n     unloaded in designated loading areas). Vehicles in violation of the<br \/>\n     above shall be subject to tow-away, at vehicle owner&#8217;s expense. Vehicles<br \/>\n     parked on the Project overnight without prior written consent of the<br \/>\n     Landlord shall be deemed abandoned and shall be subject to tow-away at<br \/>\n     vehicle owner&#8217;s expense. No tenant of the Building shall park in visitor<br \/>\n     or reserved parking areas. Any tenant found parking in such designated<br \/>\n     visitor or reserved parking areas or unauthorized areas shall be subject<br \/>\n     to tow-away at vehicle owner&#8217;s expense The parking shall not be used to<br \/>\n     provide car wash, oil changes, detailing, automotive repair or other<br \/>\n     services unless otherwise approved or furnished by Landlord. Tenant will<br \/>\n     from time to time, upon the request of Landlord, supply Landlord with a<br \/>\n     list of license plate numbers of vehicles owned or operated by its<br \/>\n     employees or agents.<\/p>\n<p>31.  No smoking of any kind shall be permitted anywhere within the-Building,<br \/>\n     including. without limitation, the Premises and those areas immediately<br \/>\n     adjacent to the entrances and exits to the Building, or any other area as<br \/>\n     Landlord elects. Smoking in the Project is only permitted in smoking<br \/>\n     identified by Landlord, which may be relocated from time to time.<\/p>\n<p>32.  If the Building furnishes common area conferences rooms for tenant usage,<br \/>\n     Landlord shall have the right to control each tenant&#8217;s usage of the<br \/>\n     conference rooms, including limiting tenant usage so that the rooms are<br \/>\n     equally available to all tenants in the Building. Any common area amenities<br \/>\n     or facilities shall be provided from time to time at Landlord&#8217;s discretion.<\/p>\n<p>33.  Tenant shall not swap or exchange building keys or cardkeys with other<br \/>\n     employees or tenants in the Building or the Project.<\/p>\n<p>34.  Tenant shall be responsible for the observance of all of the foregoing<br \/>\n     Rules and Regulations by Tenant&#8217;s employees, agents, clients, customers,<br \/>\n     invitees and guest.<\/p>\n<p>35.  These Rules and Regulations we in addition to, and shall not be construed<br \/>\n     to in any way modify, alter or amend, in whole or in part, the terms,<br \/>\n     covenants, agreements and conditions of any lease of any premises in the<br \/>\n     Project.<\/p>\n<p>36.  Landlord may waive any one or more of these Rules and Regulations for the<br \/>\n     benefit of any particular tenant or tenants, but no such waiver by Landlord<br \/>\n     shall be construed as a waiver of such Rules and Regulations in favor of<br \/>\n     any other tenant or tenants, nor prevent Landlord from thereafter enforcing<br \/>\n     any such Rules and Regulations against any or all tenants of the Building.<\/p>\n<p>37.  Landlord reserves the right to make such other and reasonable rules and<br \/>\n     regulations as in its judgment may from time to time be needed for safety<br \/>\n     and security, for care and cleanliness of the Building and the Project and<br \/>\n     for the preservation of good order therein. Tenant agrees to abide by all<br \/>\n     such Rules and Regulations herein stated and any additional rules and<br \/>\n     regulations which are adopted.<\/p>\n<p>                              Exhibit A &#8211; Page 3<\/p>\n<p>                             [GRAPHIC OMITTED]<\/p>\n<p>                              PROPERTY DESCRIPTION<\/p>\n<p>That certain property situated in the City of San Jose, County of Santa<br \/>\nClara, State of California, described as follows:<\/p>\n<p>ALL OF PARCELS A and B, as shown upon that certain Parcel Map entitled &#8220;Being<br \/>\nall of Parcel 3 as shown on the Parcel Map recorded in Book 451 of Maps at<br \/>\npages 17 and 18 and lying within the City of San Jose, California&#8221;, which Map<br \/>\nwas filed for record in the Office of the Recorder of the County of Santa<br \/>\nClara, State of California on December 2, 1982 in Map Book 506 at pages 45<br \/>\nand 46, Santa Clara County Records.<\/p>\n<p>                                   EXHIBIT B<\/p>\n<p>                             [GRAPHIC OMITTED]<\/p>\n<p>                                 EXHIBIT B CONT.<\/p>\n<p>                                    EXHIBIT C<\/p>\n<p>                           LEASE IMPROVEMENT AGREEMENT<\/p>\n<p>     This Lease Improvement Agreement (&#8220;Improvement Agreement&#8221;) sets forth<br \/>\nthe terms and conditions relating to construction of the initial tenant<br \/>\nimprovements described in the Plans to be prepared and approved as provided<br \/>\nbelow (the &#8220;Tenant Improvements&#8221;) in the Premises. Capitalized terms used but<br \/>\nnot otherwise defined herein shall have the meanings set forth in the Lease<br \/>\n(the &#8220;Lease&#8221;) to which this Improvement Agreement is attached and forms a<br \/>\npart.<\/p>\n<p>1. BASE BUILDING WORK. The &#8220;Base Building Work&#8221; described on Schedule 1 to<br \/>\nthis Exhibit C, if any, has been or will be performed by Landlord at<br \/>\nLandlord&#8217;s sole cost and expense.<\/p>\n<p>2. PLANS AND SPECIFICATIONS.<\/p>\n<p>     2.1. Landlord shall retain the services of the space planner\/architect<br \/>\ndesignated by Landlord (the &#8220;Space Planner&#8221;) to prepare: a detailed space<br \/>\nplan (the &#8220;Space Plan&#8221;) mutually satisfactory to Landlord and Tenant for the<br \/>\nconstruction of the Tenant Improvements in the Premises. Tenant shall approve<br \/>\nor disapprove the Space Plan and any proposed revisions thereto in writing<br \/>\nwithin three (3) business days after receipt thereof, which approval shall<br \/>\nnot be unreasonably withheld. The Space Plan shall be prepared in accordance<br \/>\nwith the information provided by Tenant describing the improvements which<br \/>\nTenant desires to have constructed.<\/p>\n<p>     2.2. Based on the approved Space Plan, Landlord &#8220;I cause the Spam<br \/>\nPlanner to prepare detailed plans. specifications and working drawings for<br \/>\nthe construction of the Tenant Improvements (the &#8220;Plans-). Landlord and<br \/>\nTenant shall diligently pursue the preparation of the Plum Tenant shall<br \/>\napprove or disapprove the Plans and any proposed revisions thereto. including<br \/>\nthe estimated cost of the Tenant Improvements. in writing within duce (3)<br \/>\nbusiness days after receipt thereof If Tenant fails to approve or disapprove<br \/>\nthe Space Plan or Plans or any revisions thereto within the time limits<br \/>\nspecified herein, Tenant shall be deemed to have approved the same. Landlord<br \/>\nand Tenant shall use diligent efforts to cause the final Plans and the cost<br \/>\nestimate to be prepared and approved no later than thirty (30) days after the<br \/>\nexecution of the Lease.<\/p>\n<p>     2.3. Notwithstanding Landlord&#8217;s preparation, review and approval of the<br \/>\nSpace Plan and the Plans and any revisions thereto, Landlord shall have no<br \/>\nresponsibility or liability whatsoever for any errors or omissions contained<br \/>\nin the Space Plan or Plans, or to verify dimensions or conditions, or for the<br \/>\nquality, design or compliance with applicable Regulation of any improvements<br \/>\ndescribed therein or constructed in accordance therewith. Landlord hereby<br \/>\nassigns to Tenant all warranties and guarantees by the Space Planner or the<br \/>\ncontractor who constructs the Tenant Improvements relating to the Tenant<br \/>\nImprovements, and Tenant hereby waives all claims against Landlord relating<br \/>\nto, or arising out of the design or construction of, the Tenant Improvements.<br \/>\nLandlord shall make a good faith effort to cooperate with Tenant to enforce<br \/>\nany such warranties as may be reasonably required by Tenant, provided that<br \/>\nLandlord does not incur any monetary costs.<\/p>\n<p>3. Specifications for Standard Tenant Improvements.<\/p>\n<p>     3.1. Specifications and quantities of standard building components which<br \/>\nwill comprise and be used in the construction of the Tenant Improvements<br \/>\n(&#8220;Standards&#8221;) we set forth in Schedule 2 to this Exhibit C. As used herein,<br \/>\n&#8220;Standards&#8221; or &#8220;Building Standards&#8221; shall mean the standards for a particular<br \/>\nitem selected from time to time by Landlord for the Building, including those<br \/>\nset forth on Schedule 2 of this Exhibit C or such other standards of equal or<br \/>\nbetter quality as may be mutually agreed between Landlord and Tenant in<br \/>\nwriting.<\/p>\n<p>     3.2. No deviations from die Standards we permitted.<\/p>\n<p>4. Tenant Improvement<\/p>\n<p>     4.1. The cost of the Tenant Improvement shall be paid for by Tenant,<br \/>\nincluding, without limitation. the cost of. Standards; space plans and<br \/>\nstudies; architectural and engineering fees; permits, approvals and other<br \/>\ngovernmental fees; labor, material, equipment and supplies; construction fees<br \/>\nand other amounts payable to contractors or subcontractors; taxes; off-site<br \/>\nimprovements; remediation and preparation of the Premises for construction of<br \/>\nthe Tenant Improvements; taxes; filing and recording fees; premiums for<br \/>\ninsurance and bonds; attorneys&#8217; fees; financing costs; and all other costs<br \/>\nexpended or to be expended in the construction of the Tenant Improvements,<br \/>\nincluding those costs incurred for construction of elements of the Tenant<br \/>\nImprovements in the Premises, which construction was performed by Landlord<br \/>\nprior to the execution of the Lease or for materials comprising the Tenant<br \/>\nImprovements which were purchased by Landlord prior to the execution of the<br \/>\nLease; and an administration fee of eight percent (8%) of the total cost of<br \/>\nthe Tenant Improvements. Notwithstanding anything to the contrary contained<br \/>\nin this Lease, the cost of the Tenant Improvements subject to the Tenant<br \/>\nImprovement. Allowance shall not include (and Tenant shall have no<br \/>\nresponsibility or) the following: (i) Costs for material improvements which<br \/>\nare not shown on or described in the approved final Plans unless otherwise<br \/>\napproved by Tenant in writing or which are part of a change order; (ii) Costs<br \/>\nincurred to remove Hazardous Materials in the Premises or the surrounding<br \/>\narea to the extent such materials exist prior to the completion date unless<br \/>\nthe presence of such materials was caused by Tenant or the Tenant&#8217;s Parties<br \/>\nin violation of Hazardous Materials laws; (iii) costs incurred as a<br \/>\nconsequence of delay if such delay materially affects the progress of the<br \/>\nconstruction of Tenant Improvement or delays due to force majeure (unless the<br \/>\ndelay is caused by Tenant or the Tenant&#8217;s Parties) or pre existing<br \/>\nconstruction defects; (iv) Costs recovered by Landlord upon account of<br \/>\nwarranties or insurance; (v) Penalties and late charges attributable to the<br \/>\nfailure to pay construction costs in accordance with this Lease except to the<br \/>\nextent such penalties and late charges arise due to delays caused by Tenant<br \/>\nor Tenant&#8217;s Parties.<\/p>\n<p>     4.2. Provided Tenant is not in default under the Lease beyond any<br \/>\napplicable cum periods, including this Improvement Agreement, Landlord shall<br \/>\ncontribute a one-time tenant improvement allowance not to exceed $350,448.00<br \/>\n(&#8220;Tenant Improvement Allowance&#8221;) to be credited by Landlord toward the cost<br \/>\nof the initial Tenant Improvements. If the cost of the Tenant Improvements<br \/>\nexceeds the Tenant Improvement Allowance, Tenant shall pay Landlord such<br \/>\nexcess cost within five business days after Landlord&#8217;s notice to Tenant of<br \/>\nsuch excess cost. No credit &#8220;I be given to Tenant if the cost of the Ten-ant<br \/>\nImprovements is less than the Tenant Improvement Allowance.<\/p>\n<p>     4.3. If the cost of the Tenant Improvements increases after the Tenant&#8217;s<br \/>\napproval of the Plans due to the requirements of any governmental agency or<br \/>\napplicable Regulation or any other reason, Tenant shall pay Landlord the<br \/>\namount of such increase within five (5) business days after notice from<br \/>\nLandlord of such increase.<\/p>\n<p>                                      C-1<\/p>\n<p>     4.4. If Tenant requests any change(s) in the Plans after approval of the<br \/>\nestimate of the cost of the Tenant Improvements and any such requested<br \/>\nchanges are approved by Landlord in writing in Landlord&#8217;s sole discretion,<br \/>\nLandlord shall advise Tenant promptly of any cost increases and\/or delays<br \/>\nsuch approved change(s) will cause in the construction of the Tenant<br \/>\nImprovements. Tenant shall approve or disapprove any or all such change(s)<br \/>\nwithin three (3) business days after notice from Landlord of such cost<br \/>\nincreases and\/or delays. To the extent Tenant disapproves any such cost<br \/>\nincreases and\/or delay attributable thereto, Landlord shall have the right,<br \/>\nin its sole discretion, to disapprove Tenant&#8217;s request for any changes to the<br \/>\napproved Plans. If the cost of the Tenant Improvements increases due to any<br \/>\nchanges in the Plan(s) requested by Tenant, Tenant shall pay Landlord the<br \/>\namount of such increase within three (3) business days after notice from<br \/>\nLandlord of such increase and Tenant&#8217;s approval thereof in accordance with<br \/>\nthis Paragraph 4.4.<\/p>\n<p>5. CONSTRUCTION OF TENANT IMPROVEMENTS.<\/p>\n<p>     5.1. Upon Tenant&#8217;s approval of the Plans including the estimate of the<br \/>\ncost of the Tenant Improvements and Landlord&#8217;s receipt of payment of any such<br \/>\nestimated cost exceeding the amount of the Tenant Improvement Allowance,<br \/>\nLandlord shall cause its contractor to proceed to secure a building permit<br \/>\nand commence construction of the Tenant Improvements provided that Tenant<br \/>\nshall cooperate with Landlord in executing permit applications and performing<br \/>\nother actions reasonably necessary to enable Landlord to obtain any required<br \/>\npermits or certificates of occupancy; and provided further that the Building<br \/>\nhas in Landlord&#8217;s discretion reached the stage of construction where it is<br \/>\nappropriate to commence construction of the Tenant Improvements in the<br \/>\nPromises. Landlord shall cause the Tenant Improvements to be constructed in<br \/>\naccordance with the approved final Plans, in compliance with all applicable<br \/>\nRegulations, ordinances and building codes, in a good and workmanlike manner,<br \/>\nwithout defects and using new materials and equipment of good quality.<\/p>\n<p>     5.2. Without limiting the provisions of Paragraph 35 of the Lease,<br \/>\nLandlord shall not be liable for any direct or indirect damages suffered by<br \/>\nTenant as a result of delays in construction beyond Landlord&#8217;s reasonable<br \/>\ncontrol, including, but not limited to, delays due to strikes or<br \/>\nunavailability of materials or labor, or delays caused by Tenant (including<br \/>\ndelays by the Spacc Planner, the contractor or anyone else performing<br \/>\nservices on behalf of Landlord or Tenant).<\/p>\n<p>     5.3. If any work is to be performed on the Premises by Tenant or<br \/>\nTenant&#8217;s contractor or agents:<\/p>\n<p>          (a)      Such work shall proceed upon Landlord&#8217;s written approval<br \/>\nof Tenant&#8217;s contractor, public liability and property damage insurance<br \/>\ncarried by Tenant&#8217;s contractor, and detailed plans and specifications for<br \/>\nsuch work, shall be at Tenant&#8217;s sole cost and expense and shall further be<br \/>\nsubject to the provisions of Paragraphs 12 and 27 of the Lease.<\/p>\n<p>          (b)      All work shall be done in conformity with a valid building<br \/>\npermit when required, a copy of which shall be furnished to Landlord before<br \/>\nsuch work is commenced, and in any case, all such work shall be performed in<br \/>\naccordance with all applicable Regulations. Notwithstanding any failure by<br \/>\nLandlord to object to any such work, Landlord shall have no responsibility<br \/>\nfor Tenant&#8217;s failure to comply with all applicable Regulations.<\/p>\n<p>          (c)      If required by Landlord or any lender of Landlord, all<br \/>\nwork by Tenant or Tenant&#8217;s contractor or agents shall be done with union<br \/>\nlabor in accordance with all union law agreements applicable to the trades<br \/>\nbeing employed.<\/p>\n<p>          (d)      All work by Tenant or Tenant&#8217;s contractor or agents shall<br \/>\nbe scheduled through Landlord.<\/p>\n<p>          (e)      Tenant or Tenant&#8217;s contractor or agents shall arrange for<br \/>\nnecessary utility, hoisting and elevator service with Landlord&#8217;s contractor<br \/>\nand shall pay such reasonable charges for such services as may be charged by<br \/>\nTenant&#8217;s or Landlord&#8217;s contractor.<\/p>\n<p>          (f)      Tenant&#8217;s entry to the Premises for any purpose, including,<br \/>\nwithout limitation, inspection or performance of Tenant construction by<br \/>\nTenant&#8217;s agents prior to the date Tenant&#8217;s obligation to pay rent commences<br \/>\nshall be subject to all the term and conditions of the Lease except the<br \/>\npayment of Rent. Tenant&#8217;s entry shall mean entry by Tenant, its officers,<br \/>\ncontractors, licensees, agents, servants, employees, guests, invitees, or<br \/>\nvisitors.<\/p>\n<p>          (g)      Tenant shall promptly reimburse Landlord upon demand for<br \/>\nany reasonable expense actually incurred by the Landlord by reason of faulty<br \/>\nwork done by Tenant or its contractors or by reason of any delays caused by<br \/>\nsuch work, or by reason of inadequate clean-up.<\/p>\n<p>6. Completion and Rental Commencement Date<\/p>\n<p>     6.1. Except to the extent caused by any Tenant delays or force majeure,<br \/>\nthe Commencement Date of the Lease shall not occur, and Tenant shall not be<br \/>\nobligated to pay Base Rent under the Lease until the Tenant Improvements are<br \/>\nsubstantially complete. For purposes hereof, the Tenant Improvements shall be<br \/>\ndeemed substantially complete (&#8220;Substantial Completion&#8221;, or &#8220;Substantially<br \/>\nCompleted&#8221; or &#8220;Substantially Complete&#8221;) on the date by which all of the<br \/>\nfollowing have occurred: (i) the Tenant Improvements have been substantially<br \/>\ncompleted in accordance with the Plans such that Tenant may use and occupay<br \/>\nthe Premises for the Permitted Use hereunder;. (ii) Landlord has delivered<br \/>\npossession of the Premises to Tenant, and (iii) Landlord has obtained<br \/>\napprovals and permits from the appropriate governmental authorities required<br \/>\nfor the occupancy of the Premises and the completion of the Tenant<br \/>\nImprovements. Within ten (10) business days after the Commencement Date,<br \/>\nTenant shall have the right to submit a written punch list to Landlord,<br \/>\nsetting forth any defective item of construction, and Landlord shall promptly<br \/>\ncause such items to be corrected. However:<\/p>\n<p>          (a) If Tenant delays in preparing or approving the Space Plans or<br \/>\nthe Plans, or fails to approve or disapprove the estimate of the cost of the<br \/>\nTenant Improvements or any other matter requiring Tenant&#8217;s approval, or to<br \/>\npay the excess cost of Tenant Improvements, in each case within the time<br \/>\nlimits specified herein; or<\/p>\n<p>          (b) If the construction period is extended because Tenant requests<br \/>\nany changes in construction, or modifies the approved Plans or if the same do<br \/>\nnot comply with applicable Regulations (provided such events or occurrences<br \/>\nactually result in a delay); or<\/p>\n<p>          (c) If Landlord is otherwise delayed in the construction of the<br \/>\nTenant Improvements for any act or omission of or breach by Tenant or anyone<br \/>\nperforming services on behalf of Tenant or on account of any work performed<br \/>\non the Premises by Tenant or Tenant&#8217;s contractors or agents,<\/p>\n<p>then the date described in Paragraph 2 of the Lease shall be deemed to be<br \/>\naccelerated by the total number of days of Tenant delays described in (a)<br \/>\nthrough (c) above (each, a &#8220;Tenant Delay&#8221;), calculated in accordance with the<br \/>\nprovisions of Paragraph 6.2 below.<\/p>\n<p>                                      C-2<\/p>\n<p>     6.2. If the Term of the Lease has not already commenced pursuant to the<br \/>\nprovisions of Paragraph 2 of the Lease and substantial completion of the<br \/>\nTenant Improvements has been delayed on account of any Tenant Delays, then<br \/>\nupon actual substantial completion of the Tenant Improvements (as defined<br \/>\nherein), Landlord shall notify Tenant in writing of the date substantial<br \/>\ncompletion of the Tenant Impiovements d have occurred but for such Tenant<br \/>\nDelays, and such date shall thereafter be deemed to be the Term Commencement<br \/>\nDate for all purposes under the Lease. Tenant shall pay to Landlord, within<br \/>\nthree (3) business days after receipt of such written notice (which notice<br \/>\nshall include a summary of Tenant Delays), the per diem Base Rent times the<br \/>\nnumber of days between the date the Term Commencement Date would have<br \/>\notherwise occurred but for the Tenant Delays (as determined by the Space<br \/>\nPlanner or Landlord&#8217;s contractor), and the date of actual substantial<br \/>\ncompletion of the Tenant Improvements.<\/p>\n<p>     6.3. Promptly after substantial completion of the Tenant Improvements,<br \/>\nTenant shall conduct an inspection of the Premises with a representative of<br \/>\nLandlord and develop with such representative of Landlord a punchlist of<br \/>\nitems of the Tenant Improvements that are not complete or that require<br \/>\ncorrections. Upon receipt of such punchlist, Landlord shall proceed<br \/>\ndiligently to remedy such items; at Landlord&#8217;s cost and expense provided such<br \/>\nitems are part of the Tenant Improvements to be constructed by Landlord<br \/>\nhereunder and are otherwise consistent with Landlord&#8217;s obligations under this<br \/>\nImprovement Agreement and provided Tenant has fully paid Landlord for the<br \/>\ncost of the Tenant Improvements exceeding the Tenant Improvement Allowance<br \/>\n(with any dispute between Landlord and Tenant pertaining thereto to be<br \/>\nresolved by the Space Planner or Landlord&#8217;s general contractor). Substantial<br \/>\ncompletion shall not be delayed notwithstanding delivery of any such<br \/>\npunchlist.<\/p>\n<p>     6.4. A defauft under this Improvement Agreement shall constitute a<br \/>\ndefault under the Lease, and the parties shall be entitled to all rights and<br \/>\nremedies under the Law in the event of a default hereunder by the other party<br \/>\n(notwithstanding that the Term thereof has not commenced).<\/p>\n<p>                                        C-3<\/p>\n<p>                                   SCHEDULE 1<br \/>\n                                  TO EXHIBIT C<\/p>\n<p>                         SPIEKER PROPERTIES, GATEWAY III<br \/>\n                                  BASE BUILDING WORK<\/p>\n<p>AREAS TO BE INCLUDED IN BASE BUILDING WORK:<\/p>\n<p>          A)   Water-tight Shell<br \/>\n          B)   Main Building Lobby<br \/>\n          C)   Elevator Lobbies, Floors 1 through 6<br \/>\n          D)   Elevator Cabs<br \/>\n          E)   Building Stairs<br \/>\n          F)   Building Mail\/Telephone Room, Ground Floor<br \/>\n          G)   Building Mechanical Equipment Room<br \/>\n          H)   Building Electrical Rooms, Floors 1 through 6<br \/>\n          I)   Building Telephone Closets, Floors 2 through 6<br \/>\n          J)   Common Area Restrooms, Floors 1 through 6<br \/>\n          K)   Common Area Drinking Fountains, Floors 1 through 6<br \/>\n          L)   Common Area Corridors, Floors 1 through 6<br \/>\n          M)   Common Area Janitor&#8217;s Closets, Floors 1 through 6<br \/>\n          N)   Building Balconies, Floors 4 through 6<\/p>\n<p>BUILD-OUT IN THESE AREAS TO INCLUDE:<\/p>\n<p>          A)   Floor covering<br \/>\n          B)   Finished Ceiling<br \/>\n          C)   Lighting<br \/>\n          D)   Fire Sprinklers and Fire Protection System<br \/>\n          E)   Partitions &#8211; Partitions are &#8220;ready-for-finish&#8221; on Tenant side<br \/>\n          F)   HVAC main supply loop<br \/>\n          G)   Main power distribution &#8211; brought to each floor only<\/p>\n<p>                                      C-4<\/p>\n<p>                         SPIEKER PROPERTIES, GATEWAY III<br \/>\n                           SUMMARY OF TENANT STANDARDS<\/p>\n<p>FIRE PROTECTION<\/p>\n<p>Fire Sprinkler Heads: Sprinkler heads to be Viking Horizon Mirage Model B-2.<br \/>\n                      concealed pendant automatic and quick response sprinklers.<br \/>\n                      Escutcheons to be micromatic adjustable, #E-1.<br \/>\n                      Color to be Navajo white<\/p>\n<p>FLOOR COVERING:<\/p>\n<p>Carpet:               39 oz. weight cut pile, Designweave, Sabre Classic,<br \/>\n                      installed over pad.  All standard colors available.<\/p>\n<p>Tile:                 Armstrong, Standard Excelon vinyl composition tile.<br \/>\n                      All standard colors available.<\/p>\n<p>Base:                 Burke, 4&#8243; rubber base, topset over VCT and straight cut<br \/>\n                      over carpet.  All standard colors available.<\/p>\n<p>WINDOW COVERING<\/p>\n<p>Blinds:               1&#8243; aluminum Levelor &#8220;Riviera&#8221; blinds, Color:<br \/>\n                      Black\/alabaster. Sized to fit within aluminum mulion<br \/>\n                      module.<\/p>\n<p>                                      C-6<\/p>\n<p>                                      ADDENDUM TO<br \/>\n                                   LEASE AGREEMIENT<br \/>\n                                RE: LEASE OF PREMISES AT<br \/>\n                    2033 GATEWAY PLACE, SUITE 400, SAN JOSE, CALIFORNIA<br \/>\n                                    (THE &#8220;PREMISES&#8221;)<\/p>\n<p>     NOTWITHSTANDING anything to the contrary contained in the Lease<br \/>\nAgreement (the &#8220;Lease&#8217;), between Spieker Properties, L.P., a California<br \/>\nlimited partnership (&#8220;Lessor&#8221;), and Heuristic Physics Laboratories, Inc., a<br \/>\nCalifornia corporation, (&#8220;Lessee&#8221;), the following provisions of this Addendum<br \/>\nto Lease Agreement (this &#8220;Addendum&#8221;) shall be incorporated into and be a part<br \/>\nof the Lease and shall supersede any inconsistent provisions of the Lease.<\/p>\n<p>1.   GRANT OF LICENSE. Landlord hereby grants Tenant a nonexclusive license<br \/>\n     to install on the roof of the building one (1) antenna which is no more<br \/>\n     than 60&#8243; x 1 V4&#8243; in tubular height with a mast no more than 18&#8243; x 30&#8243; in<br \/>\n     size which is to be mounted by brackets on the inside wall adjacent to<br \/>\n     the boiler exhaust fans located on top of the penthouse wall and does<br \/>\n     not exceed five pounds (5 lbs.) installed, and the nonexclusive right to<br \/>\n     run connecting lines to such antenna from the Premises (such antenna and<br \/>\n     such connecting lines and equipment herein referred to as the<br \/>\n     &#8220;Equipment&#8217;). Tenant shall not penetrate the roof in connection with any<br \/>\n     installation or reinstallation of the Equipment without Landlord&#8217;s prior<br \/>\n     written consent, which may be withheld in Landlord&#8217;s sole discretion.<br \/>\n     The plans and specifications for all the Equipment shall be delivered by<br \/>\n     Tenant to Landlord for Landlord&#8217;s review and approval. Such plans and<br \/>\n     specifications shall be approved by Landlord in writing prior to any<br \/>\n     installation. Prior to the commencement of any installation or other<br \/>\n     work performed on or about the Building, Landlord shall approve all<br \/>\n     contractors and subcontractors which shall perform such work. Tenant<br \/>\n     shall be responsible for any damage to the roof or conduit systems as a<br \/>\n     result of Tenant&#8217;s installation, maintenance and\/or removal of the<br \/>\n     Equipment. In the event that Tenant fails to repair and maintain the<br \/>\n     Equipment in accordance with this Addendum and the Lease, Landlord may,<br \/>\n     but shall not be obligated to, make any such repairs or perform any<br \/>\n     maintenance to the Equipment and Tenant shall reimburse Landlord upon<br \/>\n     demand for all costs and expenses incurred by Landlord in connection<br \/>\n     therewith, plus a reasonable administrative fee.<\/p>\n<p>2.   RENT. Tenant shall pay to Landlord, as &#8220;Additional Rent&#8221;, one hundred<br \/>\n     dollars ($100.00) per month for the use of the roof and roof space to<br \/>\n     accommodate Tenant&#8217;s Equipment. Additional Rent is due and payable on<br \/>\n     the first day of each month and is subject to the same terms and<br \/>\n     conditions under Paragraph 6.B. of the Lease.<\/p>\n<p>3.   LOCATION. The location of the Equipment shall be subject to Landlord&#8217;s<br \/>\n     prior written approval, which approval may be withheld in Landlord&#8217;s<br \/>\n     sole discretion. Tenant shall not change the location of, or alter or<br \/>\n     install additional Equipment or paint the antenna or the other Equipment<br \/>\n     without Landlord&#8217;s prior written consent. Tenant agrees that Landlord<br \/>\n     shall direct the placement of the antenna inside the roof well, other<br \/>\n     than locations that are scheduled to accommodate building equipment or<br \/>\n     services.<\/p>\n<p>4.   COMPLIANCE WITH LAW. Tenant, at Tenant&#8217;s sole expense, shall comply with<br \/>\n     all laws, rules, orders and regulations regarding the installation,<br \/>\n     construction, operation, maintenance and removal of the Equipment and<br \/>\n     shall be solely responsible for obtaining and maintaining in force all<br \/>\n     permits, licenses and approvals necessary for such operations.<\/p>\n<p>5.   TAXES. Tenant shall be responsible for and promptly shall pay all taxes,<br \/>\n     assessments, charges, fees and other governmental impositions levied or<br \/>\n     assessed on the Equipment or based on the operation thereof<\/p>\n<p>6.   RELOCATION. Landlord may require Tenant, at Tenant&#8217;s sole cost and<br \/>\n     expense, to relocate the Equipment during the term of the Lease to a<br \/>\n     location approved by Tenant, which approval shall not be unreasonably<br \/>\n     withheld, conditioned or delayed.<\/p>\n<p>7.   TERMINATION. Landlord reserves the right to terminate Tenant&#8217;s right<br \/>\n     pursuant to this Addendum with thirty (30) days prior written notice to<br \/>\n     Tenant. This Addendum will terminate immediately should Tenant be in<br \/>\n     default of the Lease and\/or any related sublease. This Addendum shall<br \/>\n     automatically terminate upon the expiration or earlier termination of<br \/>\n     the Lease.<\/p>\n<p>8.   INTERFERENCE. Operation of the Equipment shall not interfere in any<br \/>\n     manner with equipment systems or utility systems of other tenants,<br \/>\n     including without limitation, telephones, dictation equipment, lighting,<br \/>\n     heat and air conditioning, computers, electrical systems and elevators.<br \/>\n     If operation of the Equipment causes such interference, as determined by<br \/>\n     Landlord in Landlord&#8217;s reasonable discretion, Tenant immediately shall<br \/>\n     suspend operation of the Equipment until Tenant eliminates such<br \/>\n     interference.<\/p>\n<p>9.   MAINTENANCE AND REPAIR. Tenant shall maintain the Equipment in good<br \/>\n     condition and repair, at Tenant&#8217;s sole cost and expense. Landlord may<br \/>\n     from time to time require that Tenant repaint the antenna at Tenant&#8217;s<br \/>\n     expense to keep the same in an attractive condition. In the event that<br \/>\n     Tenant fails to repair and maintain the Equipment in accordance with<br \/>\n     this Paragraph 9, Landlord may, but shall not be obligated to, make any<br \/>\n     such repairs or perform any maintenance to the Equipment and Tenant<br \/>\n     shall reimburse Landlord upon demand for all costs and expenses incurred<br \/>\n     by Landlord in connection therewith, plus a reasonable administrative<br \/>\n     fee. I<\/p>\n<p>10.  ACCESS. Tenant may access the roof for repair and maintenance of the<br \/>\n     satellite dish, only during normal business hours, on not less than 24<br \/>\n     hours prior written notice to Landlord. Should Tenant request roof<br \/>\n     access during normal business hours with less than 24 hours prior<br \/>\n     written notice, Landlord will use best efforts to provide Tenant roof<br \/>\n     access. Tenant shall designate in writing to Landlord all persons whom<br \/>\n     Tenant authorizes to have access to the roof for such purposes. Upon<br \/>\n     such designation and prior identification to Landlords&#8217; building<br \/>\n     security personnel, such authorized persons shall be granted access to<br \/>\n     the roof by Landlord&#8217;s building engineer. Tenant shall be responsible<br \/>\n     for all costs and expenses incurred by Landlord in connection with<br \/>\n     Tenant&#8217;s access to the roof pursuant to this Paragraph 10. Landlord or<br \/>\n     Landlord&#8217;s agent may accompany Tenant during such access.<\/p>\n<p>11.  INDEMNITY AND INSURANCE. Tenant shall indemnify, defend, protect and<br \/>\n     hold harmless Landlord from and against any and all claims related to<br \/>\n     the Equipment or operation of the same as if the Equipment were located<br \/>\n     wholly within the Premises. Tenant shall provide evidence satisfactory<br \/>\n     to Landlord that Tenant&#8217;s property and liability insurance policies<br \/>\n     required under the Lease include coverage for the Equipment and any<br \/>\n     claim, loss, damage, or liability relating to the Equipment. Paragraph<br \/>\n     10 of the Lease shall apply to the Equipment and Tenant&#8217;s use thereof.<\/p>\n<p>12.  NO LANDLORD RESPONSIBILITY. Landlord shall have no responsibility or<br \/>\n     liability whatsoever relating to (i) maintenance or repair of the<br \/>\n     Equipment, (ii) damage to the Equipment; (iii) damage to persons or<br \/>\n     property relating to the Equipment or the operation thereof-, or (iv)<br \/>\n     interference with use of the Equipment arising out of utility<br \/>\n     interruption or any other cause, except for injury to persons or damage<br \/>\n     to property caused solely by the negligence or intentional misconduct of<br \/>\n     Landlord, its agents or any other parties related to Landlord. In no<br \/>\n     event shall Landlord be responsible for consequential damages. Upon<br \/>\n     installation of the Equipment, Tenant shall accept the area where the<br \/>\n     Equipment is located in its &#8220;as is&#8221; condition. Tenant acknowledges that<br \/>\n     the roof location of the Equipment is suitable for Tenant&#8217;s needs, and<br \/>\n     acknowledges that Landlord shall have no obligation whatsoever to<br \/>\n     improve, maintain or repair the area in which the Equipment will be<br \/>\n     installed.<\/p>\n<p>13.  USE. Tenant shall use the Equipment solely for the operations associated<br \/>\n     with the Permitted Use and within Tenant&#8217;s Premises and shall not use or<br \/>\n     allow use of the Equipment. for consideration or otherwise, for the<br \/>\n     benefit of other tenants in the building or any other person or entity.<\/p>\n<p>14.  REMOVAL. Tenant shall, at Tenant&#8217;s sole expense, remove the antenna and<br \/>\n     such other portions of the Equipment as Landlord may designate, and<br \/>\n     restore the affected areas to their condition<\/p>\n<p>     prior to installation of the Equipment (i) if Tenant fails to perform any<br \/>\n     of its obligations under this Addendum within five (5) days after request<br \/>\n     of Landlord, or immediately in the event of emergency, (ii) immediately<br \/>\n     if such removal is required by any governmental agency having<br \/>\n     jurisdiction over the Equipment, and (iii) in any event, no later than<br \/>\n     thirty (30) days after expiration or earlier termination of the Lease;<br \/>\n     provided, however, that Tenant shall continue to pay the Rent described<br \/>\n     in Paragraph 2 hereof during such thirty (30) day removal period. If<br \/>\n     Tenant fails to remove the Equipment when and as required under this<br \/>\n     Addendum, Landlord reserves the right to do so, and the expense of the<br \/>\n     same shall be immediately due and payable from Tenant to Landlord as<br \/>\n     Additional Rent, together with interest and late charges as provided in<br \/>\n     the Lease.<\/p>\n<p>     15. SURVIVAL. The covenants, obligations and indemnities under this<br \/>\n     Addendum shall survive expiration or earlier termination of the Lease<br \/>\n     for any reason.<\/p>\n<p>     Except as expressly modified above, all terms and conditions of the<br \/>\nLease remain in full force and effect and are hereby ratified and confirmed.<\/p>\n<p>LANDLORD:                                TENANT:<\/p>\n<p>Spieker Properties, L.P.,                Heuristic Physics Laboratories, Inc.,<br \/>\na California limited partnership         a California corporation<\/p>\n<p>By: Spieker Properties, Inc.             By: \/s\/ DAVID Y. LEPEIJIAN<br \/>\n    a Maryland corporation                   &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<br \/>\n    its General Partner                      David Y. Lepeijian<br \/>\n                                         Its: President &amp; CEO<br \/>\nBy:  \/s\/ JOHN W. PETERSEN<br \/>\n     &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;         Date: May 18, 1999<br \/>\n                                               &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<br \/>\n     John W. Petersen<br \/>\n     Its: Vice President<br \/>\n          &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<\/p>\n<p>     Date: May 20, 1999<br \/>\n           &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7468,7802],"corporate_contracts_industries":[9513,9489],"corporate_contracts_types":[9583,9579],"class_list":["post-41803","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-equity-office-properties-trust","corporate_contracts_companies-hpl-technologies-inc","corporate_contracts_industries-technology__software","corporate_contracts_industries-real__reits","corporate_contracts_types-land__ca","corporate_contracts_types-land"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/41803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=41803"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=41803"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=41803"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=41803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}