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1.23 "Holder" means the fabler of any Securitylnstmmen, <br />1.24 "Expressly Restricted Use" means any use for: (a) offices of any division, agency ar bureau of any foreign government or <br />subdivision thereof, (b) offices of any health care professionals or for the provision of any health care services, (c) any schools, (d) any retail or <br />restautranL uses, (a) any residential use, O any communications uses such as broadcasting radio and/or television stations, (g) "executive suite" type <br />uses where offlae suites nit maintained for individual rental, or (h) any occupancy density greater than the average occupancy density for office <br />tenants of the Project. <br />1.25 The "FMRR" of the Premises for a particular Extension Tenn (as defined in Schedule "J-I") or for a particular Leased First <br />Right Space (as defined in Schedule "J-2' for the term of Tenant's lease thereof, still][ be equal to the rent per square foot of Rentable Area that <br />Landlord has agreed to accept, or if Landlord determines that there has not been a reasonable number of current comparable transactions in the <br />Project, that landlords of the Comparable Buildings have agreed to accept, and sophisticated nonalri]ialed tenants of the Project and/or Comparable <br />Buildings have agreed to pay, In current arms -length, non -equity (i.e,, not being offered equity in the building), transactions for comparable space (in <br />tenor of condition, floor location, view and floor height) of a comparable size (in terms of square feet of Rentable Area), for a term equal to the <br />Extension Term (or the term of Tenant's lease of the applicable Leased First Right Space) and with a conmencement date within six (6) months <br />befom or after the first day of the Extension Term (or the applicable Offered Space Scheduled Commencement Date (as defined in S_ahedule'9-2"1), <br />which rent per square foot shall take into account and make adjustment for the existence, tinting and amount of any increases in rent following terra <br />commencement in the comparison transactions, and shall at all times take Into consideration and make adjustment for all other material differences in <br />all lei -ins, conditions or factors (applicable to tine transaction In question hereunder or applicable to one or more of the comparison transactions used <br />to determine the FMRR) that a sophisticated tenant or sophisticated landlord would believe would have a material impact oil a "fair market rental" <br />determination; provided, however, that: (a) the rent for all comparison transactions shall be adjusted to reflect payment of operoting expenses and <br />real estate taxes In the same manner m the same are payable hereunder (e.g., if this Is a modified, full service gross lease, the rent for all comparison <br />transactions shall, if applicable, be greased up to reflect payment of operating expenses and taxes in excess of a base year as of the year of <br />commencement of the tronsaetlon), (b) the presence, amount or absence of brokerage commissions in either the subject transaction or the comparison <br />transactions shall be disregarded, (a) any rent abatement or other free rent of any type provided in comparison transactions for the period of the <br />performance of any tenant improvement work (i.e., any "construction period") shall be disregarded, and (d) if a y tenant improvements or allowance <br />provided for in comparable transactions shall be taken into account, then the value of any existing improvements in the Premises (or the Leased First <br />Right Space) shall also be accounted for in the calculation of the FMRR (provided that if in determining the FMRR for a subject transaction <br />hereunder, it is determined that free rent or cash allowances (collectively, "Concessions") should be granted, Landlord may, at Landlord's sale <br />option, elect all or any portion of the following: (i) to grant some or all of the Concessions to Tenant as free rent or as an improvement allowance, or <br />(d) to adjust the monthly installments of the Base Rent payable for due Extension Term or with respect to the Leased First Right Space, as the case <br />may be, to be on effective rental rate which takes into consideration and deducts from monthly rent the amortized amount of the total dollar value of <br />such Concessions, amortized on a straight line basis over the Extension Term or the term or Tenant's lease of the Leased First Right Space, as <br />applicable in which case the Concessions so amortized shall not be provided to Tenant), <br />1,26 "Force Majenre Events" means events described in Section 17.5 below. <br />1.27 "Handle", "Handled", or "Handling" means, with respect to Hazardous Materials, any Installation, handling, generation, <br />storage, oeannient, use, disposal, discharge, release, manufacture, refinement, presence, migration, emission, abatement, removal, transportation, or <br />any other activity of any typo in connection with or involving such Hazardous Materials. <br />1,28 "Hazardous Materials" means: (a) any material or substance: (i) that is defined or that becomes defined as a "hazardous <br />substance", "hazardous waste," "infectious waste," `chemical mixture or substance," or "air pollutant" ender Environmental taws; (if) that contains <br />petroleum, crude oil or any fraction thereof, (iii) that contains polyollurinated bipheay]s (PCB's); (iv) that constitutes asbestos or asbestos -containing <br />nnteriah (v) that is radioactive; or (vi) that is infectious; or (b) any other material or substance displaying toxic, reactive, ignitable or corrosive <br />characteristics, as all such terms are used in their broadest sense. <br />1.29 "floldover Rental Rate" means an amount equal to one hundred Lilly percent (150%) of the greater of: (a) Landlord's then <br />published asking rental rate or (b) the Base Rent and Additional Rent payable by Tenant to Landlord during the last month of the Term of this Lease. <br />1.30 "Initial Premises" means the premises described in Item 2.3 of the Basic Lease Provisions. <br />1.31 "Initial Term" means the period (which shall comnnence on the Commencement Date) that is described in Item 3.3 of the Basic <br />Lease Provisions; provided that if (lie Commencement Date shall occur ni a day other than the first day of any calendar month, for purposes of <br />calculating the dale on which the Initial 'Perm is scheduled to expire (te., the Expiration Date for the Initial Tamil and the timing of all scheduled <br />Increases in Base Rent during the Initial Term (but not for any other purpose), the Commencement Date shall be deemed to be the first day of the <br />cnlandai month following the Commencement Date. <br />1.32 "Institutional Owner Practices" means the practices of the majority orthe institutional owners of fnstimtional grade first-class <br />orlice projects in Orange C'ounly, California. <br />1.33 "Interest Rate" means an annual rate of interest equal to tine Reference Rate plus two percent (2`R,). <br />1.34 "Landlord Default" is defined in Section 16.1 below, <br />1.35 "Landlord Parties" means, collectively, Landlord, Occon Nest Capital Partners, LL.C, Fortress invesunent Group, LLC, and the <br />Propon}'- Manager, and each of their Affiliates and all of their respective partners, members, officers. managers. directors, trustees, employees, <br />retiree&, heneficiades, conuracturs (including internal iuvesunent contracmrs), agents. advisors, morteagees laid ground lessors, agents, successors <br />and assigns. <br />80111 Civic Ceater Dr'—C!41nfSnnln Ann Lenre -2- <br />