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<br />
<br />LEASE
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<br />ARTICLE I. TERM
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<br />SECTION I.I 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 ITom 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 Exhibi18 "A" r attached hereto, for the term, at the rental,
<br />and in consideration of all of the terms and conditions set forth below. This is lease of real property in a center
<br />within the meaning of Subsection 365(bX3) of the Bankruptcy Code, II U$.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, re!Tigerant 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 LEASK 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 I, the first lease year shall be the period !Torn such commencement date to the
<br />next succeeding December 31 and, further, if this Lease terminates on a date other than December 3 J, the last lease year
<br />shall be the period beginning on the January I 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,
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<br />(d) Payment of any initial monthly rent charges,
<br />. . .. .
<br />provisions of this Lease.
<br />
<br />fi 'It I 0 ' , '. " I
<br />which may be required pursuant to the terms and
<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 />
<br />SECTION 1.5 COMMENCEMENT OF LEASE TERM, The Term shall commence ("Term
<br />Commencement Date") on the date specified in Item 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 DATK Tenant's obligation to pay rent shall commence on the
<br />Term Commencement Date as set forth in Section 15 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 Item 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 .wi~hout any deductions or
<br />offset whatsoever. The Minimum Rent for any !Tactional part of a calendar month at the begmntng 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 INCREASK The amount of Minimum Rent shall be adjusted as of the
<br />expiration of the twelfth (12~) full calendar month of the Term and each twelve (12) ,:"onth period thereafter to reflect any
<br />increase in the cost of living, The adjustment, if any, shall be calculated upon the basIS of the Untted States Department of
<br />Labor, Bureau of Labor Statistics Consumer Price Index of Urban Wage Earners and Clencal Workers, Los Angeles-Long
<br />Beach-Anaheim Average, all items (1967 - 100) (the "Index"), The Index published and in effect nmety (90) days pnor to
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