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LEASE <br /> <br />ARTICLE 1. TERM <br /> <br /> SECTION 1.1 LEASED PREMISES. Landlord, In consideration of the rent to be paid and the covenants to <br />be performed by Tenant, does hereby lease to Tenant and Tenant hereby rents from Landlord those certain premises <br />("Premises") containing approximately the floor area set forth In Item 9 of the Basic Lease Provisions, located in CIVIC <br />CENTER PROFESSIONAL PLAZA in the City of Santa Ana, County of Orange, State of California, which ~ <br />Center and Premises are more particularly described on Exhibit~ "A"lll~ attached hereto, for the term, at the rental, <br />and in consideration of all &the terms and conditions set forth below. This is lease of real property in a~center <br />within the meaning of Subsection 365(b)(3) of the Bankruptcy Code, 11 U.S.C. <br /> <br />The exterior walls and the roof of the Premises and the area above and beneath said Premises are not leased hereunder, <br />and the use thereof together with the right to locate, both vertically and horizontally, install, maintain, use, repair and <br />replace pipes, utility lines, ducts, conduits, flues, refrigerant lines, drains, sprinkler mains and valves, access panels, wires <br />and structural clements leading through the Premises in locations which will not materially interfere with Tenant's use <br />thereof and serving other parts of the ~ Center, are hereby reserved unto Landlord. <br /> <br /> SECTION 1.2 TERM OF LEASE. The term ("Term") of this Lease shall be the number of full calendar <br />months specified In Item 3 of the Basic Lease Provisions, plus any partial month following the commencement date <br />(''Term Commencement Date" defined below) if such date is other than the first day of a month. For purposes of this <br />Lease, the term "Lease Year" and "Calendar Year" shall have the same meaning, except in the event when the Term <br />commences on a date other than January 1, the first lease year shall be the period from such commencement date to the <br />next succeeding December 31 and, further, if this Lease terminates on a date other than December 31, the last lease year <br />shall be the period beginning on the January 1 following the last full lease year and ending on such termination date. <br /> <br /> SECTION 1.3 RIGHT TO POSSESSION OF PREMISES. Tenant shall be entitled to possess and occupy <br />the Premises pursuant to provisions of this Lease provided Tenant has complied with the following requirements: <br /> <br /> (a) Payment of the security deposit in the amount set forth in Item 10 of the Basic Lease Provisions. <br /> <br /> (b) Submittal of all insurance policies and/or certificates of insurance as required by the provisions contained in <br />Article X of this Lease. <br /> <br /> (c) Submittal of any plans and specifications, permits and governmental authorizations that may be required pursuant <br />to the terms and provisions of this Lease. <br /> <br /> (d) Payment of any initial monthly rent charges, _-,~-~---:- ?__?_2L_ _'_._,__. ' -% .... ~- -r- :~ ~ .... l <br /> which may be required pursuant to the terms and <br />provisions of this Lease. <br /> <br /> SECTION 1.4 DATE OF LEASE AND LEGAL EFFECT. The terms, covenants and conditions of this <br />Lease shall become legally binding on the date it is executed by Landlord (after having been executed by the Tenant) <br />notwithstanding the fact that the Term Commencement Date and Rent Commencement Date as hereafter set forth might be <br />different. <br /> SECTION 1.5 COMMENCEMENT OF LEASE TERM. The Term shall commence ("Term <br />Commencement Date") on the date specified in ltem 14 of the Basic Lease Provisions, and terminate on the date set forth <br />in said Item 14, unless Landlord and Tenant execute a written supplemental agreement to the Lease setting forth a <br />different Term Commencement Date and Termination Date. <br /> <br /> SECTION 1.6 RENT COMMENCEMENT DATE. Tenant's obligation to pay rent shall commence on the <br />Term Commencement Date as set forth in Section 1.5 above and continue throughout the Term of the Lease, unless <br />Landlord and Tenant execute a written supplemental agreement to the Lease setting forth a different Rental <br />Commencement Date. <br /> <br /> SECTION 1.7 COMMENCEMENT DATE FOR ALL OBLIGATIONS. All other terms, conditions, <br /> covenants and provisions of this Lease, including Tenant's obligation to pay common facility charges, taxes and <br /> assessments and any other sum of money or charges (other than rent which is specified in Section 1.6 above) shall be <br /> legally binding upon the parties hereto as of the Term Commencement Date as specified in Section 1.5 above. <br /> <br />ARTICLE II. RENT <br /> <br /> SECTION 2.1 MINIMUM RENT. Tenant shall pay to landlord for each full calendar month during the Term <br />the Minimum Rent specified in ltem 4 of the Basic Lease Provisions. Minimum Rent shall be payable in advance upon <br />the first day of each calendar month whether or not Landlord makes any demand therefor, and without any deductions or <br />offset whatsoever, The Minimum Rent for any fractional part of a calendar month at the beginning or end of the Term <br />shall be prorated upon a daily basis based upon a thirty(30) day calendar month. <br /> SECTION 2.2 COST OF LIVING INCREASE. The amount of Minimum Rent shall be adjusted as of the <br />expiration of the twelfth (12t~) full calendar month of the Term and each twelve (12) month period thereafter to reflect any <br />increase in the cost of living. The adjustment, if any, shall be calculated upon the basis of the United States Department of <br />Labor, Bureau of Labor Statistics Consumer Price Index of Urban Wage Earners and Clerical Workers, Los Angeles-Long <br />Beach-Anaheim Average, all items (1967 - 100) (the "Index'). The Index published and in effect ninety (90) days prior to <br /> <br /> <br />