it flidomnimgt.com/cmsvol2/pub_47137/595930_500.pdf · 49.48* (Àrticle 7) this lease consists of:...

IN THE I.INITED STATES BANKRUPTCY COURTFOR THE SOUTHERN DISTRICT OF INDIANA

INDIANAPOLIS DIVISION

In re: Chapter 7

Case No. 16-07207ITT EDUCATIONAL SERVICE, INC.,

Debtor.

DECLARATION OF GREGG KATS IN SIIPPORT OF BOEING EMPLOYEES'IT ON'S LIMITED OBJECTION TO

ENTRY OF AN ORDER (D EXTENDING TIME F'OR PERF'ORMANCE BY THETRUSTEE: ûD AUTHORIZING ON OF' CERTAIN EXECIITORY

LEASES AND ABANDONMENT OF PEPROPERTY: AND flID APPROVING RE,.IECTION NOTICE PROCEDURE

I, Gregg Kats, declare as follows:

1. I am the Vice-President of Administration for Boeing Employees' Credit Union

("BECU"). I make this declaration based on personal knowledge and on records

kept in the ordinary course of BECU's business.

2. BECU is the owner and lessor (as successor in interest to the previous owner and

lessor) under a November 14, 1989lease (ool-ease"), as amended, for real property

located in Tukwila, V/ashington. A true and correct copy of the Lease is attached to

this declaration as Exhibit A. The Debtor in this bankruptcy case is the lessee under

the Lease.

3. By its terms, the Lease terminates on May 31,2018.

4. Prior to September 16,2016 the Debtor defaulted on the Lease by, among other

defaults, failing to pay rent for September.

5. BECU has not received any rent payments or other payments from the Trustee in

484t-t203-2315.01t02616/t r 00/6s r 07.00002

Case 16-07207-JMC-7A Doc 500 Filed 10/26/16 EOD 10/26/16 14:35:10 Pg 1 of 125

this bankruptcy

6. As of the date of this declaration, the Trustee has not advised BECU of whether the

Trustee will reject or not reject the Lease.

I declare under penalty of perjury thatthe foregoing is true ancl correct.

Signed ttris -Â{¿ay of ûctober,2016, in Washington.

4841-12û3"23f5.0110201 6/r60 1/é5 107.00002

-2 -


EXHIBIT A


{.

TRIPI,E NEI OFFICE I¡EAsE

ãRTICLE ¡l' 8AI¡fENf IJEA8E ÍERU8

lHrs r,EAsE is dated for reference purposes onry this -gn day ofNovember , 1989.

1-.1 RENI KA]SER GÀTEI{AY ÀSSOCTATESPalnnent: FiLe No. 21862

P.o. Box 60000san Francisco, cÀ 94L60-l-862

Lêssor: Kalser Gatettay Associatesc,/o Bedford Propertiestzzzo Gatenay Drive, suíte 1"07

Seatt1e, WÀ 98L68

L.2 PartiesandNotice

1.3 Prernlses:

L.4 Term:

1,5 RenÈ:

1.6 SecurityDeposit:

1.7 Use:

(B) Leased Premíses:

Lessee:

(If more than one Party' then theòbligat,lons hereunder shall be Jointand several.)

(ÀrticJ.e 44)

(A) Name and Locatl"on of the conpLex:Gateway corpoiate CenterOffice Center - A12720 Gatev¡av Drlveseattle, wÀ 98168

llrrlfa 1lìO

Rentable 25. o93

Le 3)

(A)(B)

Conr¡encínq -Xgfçhj, L990

(Artllonths4,

(À) Ml.nimurn Monthly:qô ôôì ¿lôl l nar nnn{.lt -

.4

/(/)Léssorr s

(B) Advance Rent: o-oo(Àrticl.e 6)

n-oô

(Art 8)

PreniseE used solely for Technlcal

cle 9)

f.egsee I IhLtLals

:r------'_::_-_

qfratate¡t crrnnort an<t a¿ìminrr{ T i oc ¡n¡l aancra'l of

InitiaIE


.8

.8À

1.9 Content:

49.48* (Àrticle 7)

This lease consists of:Pages I through 25Addenda L - L3Exhibits!

À - Legal DescriPtlon ofconplex

B - Plot or floor Planc - construction oblígationsD - Acknowledgernent of

commencementE - RuleÊ and ReguLationsF - Non Dísturbance

The above terms are incorporated 1n thls Lease as indicatedabove and referenced herein.

åRIICI¡U 2. DEFINXIION8

The terns defined ln this Àrticle 2 shall' for all purposesof this lrease and aII agreements suppJ-enental hereto, havethe rneaning hereln specified unless expressly stated other-wíse.

(a) trBulldLngrr shaLl nean the Êtructure whlch contains theLeased Premises.

(b) rrConmon Areaslr shatl mean alI areas and facilitlesoutside'tire Leased premises that are provided and designated byLessor from time to time for the general use and convenience ofLessee and of other tenants of Lessor havlng the common use of suchareas, and their respective authorlzed relresentatl.ves and ln-vitees. common Areis include, without llnitation, corridors,stairways, tobbies, restrooursrelevator shafts, janitor rooms'driveways, parking areas, streets, Iandgcaped areas as well aÉ¡ anyottt"r aieås'outsiáe the bornplex which are from tlne to tirne maln-talned and operated by Lessór for the mutual benefit of Lessee andother tenants of Lessor.

(c) lrComplexrt shalt rnean that parcel of, real property, orparcels'oi real þroperty In common ownã_rship with. and contLguousLo, the parcel oi wtricn-the Leased Prernises forms a part, which isdeåcri¡eä with particuLarity in Exhibit lArl attached hereto andmade a part hereof by reference, and described generally in Section1.3(À) hereof.

(d) ttLease Yearrr means any.calendar year, or portion there-of, fotiowinq the comrnence¡nent hereof, the whole or any part ofwhich period is included withln the Term.

(e) Itleasehold Improvementst' shall ¡nean the aggregate ofthe Building standard v¡ork and the Buitding nonstandard work donein accordanóe wlth the work letter agreemént, vhlch agreement isattached hereto, as Exhiblt ttCrr.

'ØzcIreSSgf l glnitials

Lesg€€ | g

1

L

Initial ProRata t¡Initial -Utllities*

42.27+

2

ri

Inltials


€o.r{q{(,¡d

ti{,Ikr$Ê

cl¡¡OJ¡ød.r

(f)|tProportionateshare|'or.l|ProrataPercent||shalt be that'rractiõñ-lõãññI[ea to ã percentage) the numeratorof whlch is the usable Àrea of the l,easèd Pre¡nises rnultiplied bIiñ" ä/u nuij.o*and inJ aeno¡ninator of v¡hich is the Rentable Area ofall floors (or f,easãa premises 1f the Conplex is on a síngle f1-oor)rentabLe to Lessees in the co¡npIex. Lesseere Proportionate shareas of the commencement of the €errn hereof, is specified in Sectioni.e.- said proporitonate share shall be recalcuLated as nray.be,åq"f""J "f f;;t'|te as at the co¡n¡nencement of any period to whichthá calculation is applicable in this Lease. Comnon area expensesoi .rry other "*p.ttrãi'rtich benefÍt more than the Complex in whÍchitt" Ërernises ai:e fãcatea shall be allocated to the ConpLex þYãï"fai"g-ìne Rentable Àrea of the Complex .by the t_ota1 rentableàreá wnicn in Ländlordls reasonable opinion benefits fron tlreã"pð"=ã Ueing prorated. If in Landlordrs reasonable judgemel! .nyof these ¡nethoãs of allocation results in an inappropriate alloca-tion to Tenant, Landlord shall select some other reasonable ¡nethodof deterrninl-ng Tenantrs proportionate share.

(s) rrR/u Ratiou (an abbreviatíon for Rentable/usaþ|eRatio) shall ¡riéån ti¡at fractio¡ì ttre nurnerator of which l-s RentableArea and the denomÍnator of which ís Usable Area'

(h) ilRenttr means Minirnu¡n Monthly Rent and all othersurns required'tb le-lãa by Lessee pursuant tb the terms of thisLease.

(i) "BeB!gþlg-Àæê". The Rentable Àrea of a floorshall be comput'ed by measuting to the instde flnlshed surface ofthe dorninantþortion of the permanent outer Building walls, excLud-i"g ã" llajor'Vertical peneLrations of the fLoor. No deductlonsshall be rnade for columns an proJections necessary to the Building.The Rentable Area of an offise -on the floor shaLt be computed bytuitipivi"g the usabre Àrea of that office by the Rzu Ratio descri-bed in Section 2/L (f., for the floor.

(j) r,EgU.e--EgA". The Usable Area of an offlceshall be the äri¡n¡er ot ãquãre feet cornputed by neasuring to thefinished surface of the ofiice side of corridor and other permanentwalls, to the center of partitions that separate the office fronraajoiiring Usable Areas, ánd to the inside finished surface of thepefuun"¡€ outer puilding waLls. No deductions shaLl be ¡nade forthe columns an projections necessary to the Building. The UsableÀrea of a floor shall be equal to the Eum of all usable Areas onthat floor.

ARTICLE 3. PREI'lIgEg

Lessor hereby leases to Lessee, and Lessee hires from Lessora portion of the cornplex. Tbe portion of the auilding f9lPganeiein is described iìr Section t.-3(B) and delÍneated on ExhlblttrBn whíclr ls attached hereto and made a part hereof by reference.The Rentable Àrea of the l¡eased Prenises consists of the ap-proximate amount of square footage specified ln sec-

3

/¿I¡eSgÔf I grnLtLal.s

'IVÉL'

IJêSge€ | grnit,ials

*


tion 1,3(c) hereof' læssee acknotr).edges that Le ssor shall have

no liablllty, nor Éhall Lêssee have terminôt.ion, inthe event footage ln the

ôny right ofLeased Prenises is less than

the a¡nounthe Êguare

t specified

ayathe

ln sectlon x.3 (C) hereof. In the event theþrH A,to>.lo

!dpr{Cr(s3.dd.ü ..{(HuÊ

o!o Ê0,d Ê!sd

ooUÐoþÉ osooo o{JFl o.i

'¡@ñe>,F{ ÉdcroÊ'u>oo¡t q),rl 0, ors.Ëou$o

¡.lrrÉOHñ"o q).d .d>.poEl¡rg.Àqiq)v!9

(õÕ (rlJ6¡qup

ÊHO.oËÊo90.ÊÊÉo0){J!ÉÊrdoEltuoÉo

'o 0JdÉoo É,c>rOUcio,êd

ò0Ê€dood>thÞ o(Ú 0ÁilFlCJÈl ø¡doà

ç(dø¡J

'Fl !,É^>,o(Þl¡ ¡rNoÊ> ovì{O.-r Þ >,otHp'úËqopoÈ(d!,Éøe >,€(!q)>id l¡¡ú!¡OaÉ

N9E v.codooo3Épo!oqrÊç >.do o.¡ÞoÞOt¡ÁolúF{ O

r{øo(d0¡'c op øËò00, 0.É qJpdoAJØøÊoo.rú¡ O O!.Êlø0.Erd¡^o op 0, ¡¡|¡'HO&Þø Ø! ø d.do oJ36ãË9P*

Lê ased Pre¡nises cons ist of, }ess than six thousand (60oo) sguare

feet, Lessor shal'I have the rig ht, at any tirne during the Term

hereof, uPon not less than nlnety (90) days prior writt en noticeto l,essee, to substitute for the Lea sed PremÍ ses such other spôce

in the conplex as shall be substant ially the same size as theLeased Pre¡nÍe es ( ilthe Substituted Pre¡nlsesl ) , Provided that

of, Lessee lncidentaÌ to Lessee I sL€ssor shall Prelocation to

Lêssee prlorL€ase is sub

Il expensessubstltuted

irnprove the Subs tltuted Premlses for Le sseers use and occuPancY

èt. least' to the aüme extent' À5 the Leas ed Pre¡nises occuPied byto 6uch relocation. The pð rt,ies ag ree thaÈ t his

Premises ônd that Lessor shaII

of ånY covenànts, conditions,restrlcttons, es or deeds of, t rust, groundleaseg, rlghts of vay

ofând àn other matters or documents of

record i the effect any zonvIng laws of the

ject to the effecteasements, mortgag

6tAte where the Complex ls 6 Ituðted, and gecitY,

nera Icounty and

and special,taxes noÈ dellnquent. LesÊee à

under Lessee, wl)'I confor¡n to and uill not violôsion or holdite the terms

n9ofhold esÈate Lessee, and all P

any covenônts, conditions or restrict ions of record which nay now

grees Èhat as toersons !n posses

(thettreEtriclions"ictions and any am

Lessee's lease-

); and thisendments oror hereafter eneunber Lhe

Lease 1s subordinate tornodificatlons thereto.

The termin Section I.4Section 1.4 (B)of, the ter¡n.

propertythe restr

ÀRTrCr,E 4. TERH

of thls Lease shalt commence on the date specifiedt¡l-nãt"of and shall be for the tern specified inhereof, plus any partial rnonEh at the comtnencemenb

ÀRTtrcLE 5. , DEL¡Y rN DELIVqRY OF POSSESSTON

If Lessor, for any reason whatsoever, cannot deliverPossession of the Leased Pre¡nÍses to Lessee at the conmence¡nento f the Lease term, this Lease shall not be void or voidable, norshall Lessor be liable for .anY l.oss or damage resulÈing there-from.

Sge lt*ll

à¡lTrcLE 6.- ì,UtNIl'ftlr RENT

Lessee shalI pay to LcÊsor at the add ress sPecified Ínsectlon 1.1, or at such gther plôce as Les sor maY otherwisedesignate, aamount speci

s |tMinirnum t'lonthly Rent[ for the Lease d PremÍses thefied ln section 1.5 À) hereof, paYable in advance on

the f irst day of each ¡nontt¡ dur ng the Lease term. If the' Leaseterm corurences on other than the fÍrst daY of a ca lendar rnonth,the rent for the flrst Pa rtlal nonth shall be t ed according-

(

i

1y. À11 ents of Hini¡num Honas rent rticle 26, shall b

payminÀ

bhly Rent (ine ln lawf,ul

g sums definedof the United

Proracludin¡noney

states, and payable without deducÈion, of fset, countercla in,prior notice or de¡nand. The arnount spec ified in Section f.5 (B)hereof is paid herewlth t,o Lessor upon exe cution of tlris Lease asadvance rent, receip t of $/hlch is hereby acknowledgedç

tu 4 lt/í(-_Lessee I sInitialsInltial s

FSOSFS-97

i'...ú,


ÀR'TTCL8 ?. ÀDDITIqNÀL BENT

following deflnftions ehall apply for purposes of thisThe

Àrtlcler0

oì-{!odo!iu

øoriu0JF¡

a),qtT{¡dÐq,l¡Ht¡o,onÉuFl rú

Ø+J 0)Ê>O ..1Époooc)OHo\ruod

0)r{Erú ¡Jr{rJ t{oq,ÈUo la¡

rú

td t{3o!o(n

t{ q,

9Èuqoo*

(a) rrReaI Estâte T-àxes.rt or ftTaxestr shall meðn and

inctude a1I g..uiãi iñi--p"Jiof taxes, assessrnents, duties and

levies, charged and Levlea upon oi it""t"td by any governtîenÈaI

authoriry "goi.ri"lnJ-ðãñprri .lnciuaing the_ lá-nd , .the Building,any other ttprotr.iäits--åltuatea on úrte land other than theBuitdlng, tnt vaiiåî;-;tt"t;; tn trt" land and the Buildlns' anv

leasehold irnprovenents, fixtures,--lnstallatlons, additions and

equlpment, whethãr- owned !y Lessor or Lesseei except that itsha1l exclude ""í-1..-*."

ìf ifr" )<Ind covered by this Àddendum tothe extent ¡,essol 'itJ'-I.f*u"iã"a-lnereror

. byany .tenant in thenullding. Rear i.iit" raxe" sr¡ail âÌso inðluae t¡e reasonabrecost to rJessor ;i-;"t';àtrng .tñ" anount.' vartdity' or -theapplicabillty "r ãiv i;i;;-¡nåftlonea in this Artlcre' Furtherlncluded ln the dãiinltion or raxes hereln ahall be general and

special u==.t"t".rC=rnf."" of et"ty kind and.nature' co¡nmercialrent,al tax' r"vvi-'p.iãilv - or tui (other- th.an inheritance or;;;;;; iã"å"1 imposed bv aqv authorltv havins .the direct orindírect power t;ï"x; as'aga.inst any legal or equitable interestof Lessor tn tt¡e Lããsba preiiEes or litt ihe comp).ex or on the aetof entering Into this Lease or, as against Lessor's right bo rentor other inco¡ne therefron, or as iga,lnst Lessorrs busíness ofIeastng the Leased

-e-r-"ri".", any taxr- fee,_or charge with respect

;;--t-h; lossesslon, reaslng, transier óf interest' operation';;".;;;.;t, -t"int"tíun"ã, -ii€ération, repair, use'. or occupðncv bv

Lessee of, the ¡,"ãË"ã ÞtL^lt"t or any pó¡tio¡ of. the Building' orthe complex, "r-ãnV

-tax -ilnposea iï 'substitution, par.ti.al.ly ortorally , tor.any tìT piãliouårv_ lncluded within the definition ofTâxes herein, o, -"ry-åaarti"nåI tax, the. nature. of which may o{r"i- ".i have beeri'Ër.ì-ioulfy included within the definltion ofTaxes. Further,-Ïfïi "ny

ti^" durlng theterm of this Lease thenethod of taxatlon or aisess¡nent of- real estate or the inco¡nelrrãtãir"^ pr."oifi"g-"t ilt" tl¡ne of execution hereof shaII be, or;;;-Ë"b. åi["tãa so as to cause the whole or any part- of.theTaxes now or trerãaii.i revi.d, assessed or irnposed on real estatei;'-b" iàviea, "ãããrràa "t lrnposed upon Lessor, wholly or par-tial.ty, as a ".pïlãl=i"l

y, uuiin"ss täx, permit or other charge'or on or meàsured by the-rençs received'therefrom' then such neu

or alt€r€d r"xea,- iíg.iai.r" of t;;1r nàture, vhlch âra åttrlbut-able to the ranå,-;i,;ïulldlns or to other lnprovenents on theland shatl Ue ael'neã'-lo-Uã lncÍuded within the term rrReal EstateTaxesrt rot p.rtpãË;; "f i'ntu ¡tticre 7,- whether ln substitutionfor, or ln aAAi[iõn

-i" -ãny otnãr ReaI Estate Taxes, save anlã*ãåpc that such ir,urr not be deemed to include any enhancementof said tax attrib,rto¡t. to other income of Lessor. I'lith respectiã o"v general oi ipeciar .assesshents which rnay be levied upon oragainst the f,eased-

- Premises, the Euitding'- the Conplex' the

"Ãããiiii"g 'u"rii, -of -rr,t"n

-rnay ue evidenced by irnprove.ment. -orother bonds, "J"í,oV

-¡ð--pãiO ú annual or se¡ni-annual install-.ènti, only'tne ãrnäunt ór such instal'lment' pro rated for an)'partial year, u"J"ãiäã"tory- ln¡,eresb, shall be lncluded w1Èhini;;-;;;püiãii""-or-Taxes fär whlch Lessee ls responsibl.e here-under. when possible, Lessee shall cause lts trade fixtures,iurnÍshtngs, e-quipmÀnt' ana aIl other pers-onal property_to be

;;;;;;;ã ånb uiirèd separatelv from the rear propertv-ol-!î=L?IlIf any of Lessee's saiá persoha] pro-perty shall-bê assessed wrEhLessoi's reaL property, Lessee é¡¡afr Pay to,Lessor the Taxesaltributable to--iJr-"-"ã 'withln ten ( lO) - dðys ,al: ter receipt of . a

written statemeni-"ã¡tfng fãrtn the Taxes ápplicable !o Lesseersproperey.

7,

(b) "oPerating CostsIpayable, wheclìer bY Lessor or

means the total arnounts Paidothers on behalf of Lessor,

?./4--Lessee I s

or

tu 5

InltialsFSOSFS-9?

..

Inltlals

ln


connection !rlth the ouner6hip.' malntenance' repair' and opera-tions of rhe conËi-""-ÏinJüã-ihg, "rttrtout r i¡nltation, alI are¡¡s

and facilities ,iifrfn the exterior boundarles of the Complex) as

dererrnined by ri;;;;i"i"ðó"niins procedures. operatins costsshalI include, u"i"iãl-ue-timltea.-to, trr. aggrega!.9 of Ehe amounc

paid for alr f"åi ';;d-lñ--ùeatinq 'ana aii- cohaitionins of thesul lding t the u.outl paid or puyãult f or a-f I eÌ.ectr icity f ur-nished by Lessor'ãå"irr.iïornpf ex'(å;ñ;; than electricitv f urnishedto and paid for by other. te-nant6 bv reason of their extraordinaryconsumptíon or eïectiiclty), -!h.e äott or periodic relanping and

rebaltasring of ;i;;;;;;;;é' ri*t,.rr""; rhe ã¡nount paid or pavable

for alr hot and J"roì"¿", (other than that, chargeabr.e to tenantsby reason of r;;j;

--ãiiiaòrainuty-- "on-urnption--of

water), theâmount paid o" 'JJv"ui;--t , alI 'Iabor andTor $rages and other

ËîiñËÃa"'-in.ruairïg'cost to_ Lessor- of workerrs compensation and

dlsability insurance, payrotl taxãs, welfare and fringe benefitsto Janitors, t.iäi.i.i", ana otñãi enployees' contracLors and

Eubcontractors ;;--;;;är --'if ntl"áin9. 'wuiu" ot the BuirdinqEanager) tnvolveã-l"-i;;-;p""3t-ior¡, ¡nainCenãnce and repair of thecomptex, !|onog.ùJ' ;ñd ãb¡ninisträtive expenses- related to theBullding, the to¡af cbarges of any inâependent contractorsenployed tn tnã- rep{i, -.cor", ãpåratio-n' naintenance' and

cleaning of the Bultdingi the áto"'it paid'or payable fo: uI);;;;Ïi;å å"tuui"nãã- bv äverYguv wear tnd teari the costs orc1ímate controf, vinOow and elteiior waII cleaning' telephone and

utility costs; tt¡e cost of accounting.services necessary toconpute the rents and charges payaule bf tenanLs of the complex;f,ees for management, legaI, """ott"tiIttg,,inspecti-on

and consultlngservices; the "J.i'"ì-""íétuting, reñåiring and ¡naintaining iheBuilding elevatàrs; the cost - bf þorteri' guards and other;;;i;;;í"n-ãår"lããri trrä cost of estaËlishins añd ¡naintainins theã;iiãt;õi; aireålóiv board; Payments for.generar maintenance and

i.pãiit-t" tr,. pi"nË onJ-"duiptn'ent supprvlls- "llI?te cont'roli the

cosr of ""ppiviið"ãrl" r"iïfËËs. pursüäni to Àrticle 1I of thisLease to Èhe "lf"nt such services are no! paid. by individual[ãnunts; depreciltlon of the costs,- lncluding repair and replace-;;¿; år årr ï"int"n"nc" and creaning eguipment' and rnasEer

üiiilty neters and of, the costs íncurred for repairing oriãpiãåing aIl. ot,hãr flxtures, equlpment and facitities serving orcomprising the ðärËfã.--"f,ich'by'thäir nature, require periodic orsubsranriar repail-ãr iãprucärànt, a?d which are not chargedfuÌ1y in trre vLãï in wr¡iðn they are incurred'-at rates on thevarious ite¡ns determin€d frorn ti¡ne to time by'Lessor in accord-ance vrlth t"""ã--Jéäü"tfnl prlncfpf esi . ånd the net' cost and

ãïóãn"""- ror tnãurã-n-ce -ìJi ïni"ñ Leèsor is .responsibre hereunder

or whlch Lessor reasonably deems nãàé=tury in cbnnection with tlreóË"iãiiãn-ãg tf,"-conrpfex.- -operatlng Costã shalI also include anv

ReaI Estate rãxeË - as deiinea ín the. preceding paraqraph'öpãtutf"g CortJ---Ã.ff uitã lnclude, withoug Ìl¡nitation, therepair and t.pru.ã¡nãni,

-resurfacÍng br repav-ing of any of thepaved areas, ..rrt, or gutter" "itñi" the co-mplex-, and the repairand replac"rn..ri-å'i "nt'squipm.nt

oi facJlitÍes serving or Iocatedwithin tt¡e co¡nólã;;;d tñe êosts of, any capital improvenents T3deby Lessor t"

-lrtå -ôornplex for the þurpòse .of reducing otheroperating **p"r,äJ "i-üi,¡,f

fty costs, fiorn- whi.ch Lessee can expecta reasonàure ¡eneriC, or thãt are 'require^d. bq -governmental Iaw'ordinance, r"gJi"tioti or tnandate, not ap.pÌlcab}-e to the conpl'exÃi tn" t'fme -oi-ttre ortqlnal construction. For the purposesñÀruãf- "èapitai Cósts" a1e deflned as any ex-penditures of thetype whlch do ñot nor¡nalIy t".ui'ror" freqüently than every five¡'5î' y¿;;t tn tne normar ôourse of operatlon. and ¡nainÈenance ofthe compfex. the portÍon o,f- capitai costs to be included eachyear in Operatiïf ðosts -sna]-L

.b; that fract.f on allocabJ'e to theyear in q"".fiäñ éãrãurut.a bt arnortizing^ the cost over thereasonably ,t.fui 1i¡e -of tt'tÍ't improvement' as deLermined by

Lessor, with. interest on the .tnã.oiùiz.d balðnçe at the higher of(i) ten percent (1ot) Per ånnuni or (ii) the interest rate as nay

6 7Êr-Lessee t sInitialsssor

InltlalsrsosFs-97


have been paid by lJes6or for^ funds borrov¡ed for the purposed ofconsÈructing such improvements' ¡ut in no event to exceed the

híghest rate permlssiËre uv-]aya' õpät"ti"lêosts shaLl not includelegar or accoïnring expené"= r"."äãIáiliess_r.y for negotiating a

lease wÍth a';;;tiä"lit ttttut't'-ä t" ã't"toL€ of a default of a

specific t"n.fiåli;#;'".g-åîä{i; or aefaurt does not affect the

g oþeration of the cornPlex'

.ë fcì r,ê6see sharr pay lts Pro Rata * of alr Real Estate

Ëi*n"::":å"k"':iil-*"1:ä^ili:;:"i:'-rust1i,=,å"1"Tî??:i:Ti

Ï¡¡iËräi'i:llli:ie**if,iËi]:n"qt::É:*.'ü$::,r{'ft åiiir Ë" "-i,rtiãã-nünarea

sixtv (360) dav vear)'OHE

ã E Ë lnv additional Rent payable by rJessee under-this Àrticle 7

ä å î =n"rr oå"å.iu as fotrows, untess àtnärwise provided:H.Ëv

, r* ,i\ r^*-¿a ar.r1l naw to Lessor rnonthly ln advanceo r! o (i) l'essee shalt pay to I':-s-=or^I'È,1 È *irt the Minimum Rent, or,"-tr.-re-tií tilrztrtl -of the amount of such

5 ã i addlional Rent as estirnated ;;-ü"è;,'-itt- åanatt"", in good faith'! * å to bè due from Lessee'-l* r---^--rLi^ ãç+ôrE I " (ii) Ànnually as soon as is reasonably- possible afterH i E tn" expiratLon of each r,ease yãar, r,essor sharr deriver to Lessee

S ã * ;";";;ãäii;" sraremenr, *trici-=låtã¡nent shall be conclusive bet-x È 3 ;";;"iñå*,iåiii;"-h;;¿;; "ättii.'l

f"'¿ñ *t+) -Ëhe. eperaÈin FJ:=Ëi;.ä å#Eir"" 8.9 ,r ! r \ 'r +h6 raaraca{.ê emount of such estirnated addi-Fr o u (iii) rf the aggregate amount of-such estirnated addiI i I tiorl.I Rent p!ñJnt"-tn"a" ¡í-iãssee in any rJease Year sTrould be

i X E iåI'J-Ënåi'îr," add*íonat nent lue for such year, tlren Les.se"^"!111Ë Ë E ;;;-rä'îä"å"r as additío"ur

'Ë"-t "n"1t q"tãnd the amount of such

" ãåäiJi"täi.--it-irr"ãqgi"gate ãrnount-of the palnnents made bv Lessee

in respecr ";;"¿h ãááitío""fiã"t r" any -l,eãse Year of the ter¡n

should ue gieat-er-tnàn ttt" "aãrïrã""i Renû due for Êuch vear, then

should Lessee not be otherwisð in-ãeraurt hereunder, the amount.ofsuch excess will be applied i-v-i"ã""i to the -next succeeding ln-stalrments of such additlonaf'n""ï-ao" trãrLunaer; and Lf . thgre isany suclr "*ãé"ã-io,

the lâst-vãai or tÌre term, the amount thereofwirr be ref;;;;d ¡ïËã"", lã ið""".,-provided Lessee is not other-*i=ã in aerãurt u¡ider the ter¡ns of thls r"€ase'

as a Securl-unt i1

st assig¡neetnot belng earned

LesseeIaw iE

shall to (1)fronr his general accounte , or (2) PaY

for Lts use. If Lessee fails to PaY

chargeg when due hereundert or otherwise defaultsto anY of thls I'ease, includlng and not

7øfJègAeel gInltl.als

ARTICÍ,E 8. SECURIEY DEPOSTT

fied in Section l'.6. this sumand shall rerrain the sole andactuallY rePaid to LesËee (or at Iressof I sif anY, of Lessee rs interest hereunder),by Lessêe until al l. conditionshave been fulfilled. Às thÍsIegsor I skeep saídinterest, orrent orlt1

separatedeposit

7

Ø¿Le'SSOf t gInltlals


L€ssee, at L€s6orIe electlon, aball be deened not to have

the righÈ to rePa¡roent of the Secur Ity Deposit, or those tionsthereof uaed or aPPI led by I-cesor for the Pa¡rnent o y rent oroÈher charges ln default, or for the Palment of other 6um tovhlch L€65or maY becone obl iga ted by reaaon o sseers defaulttor to compensat€ L,easor for any Joes ord e whiclr Lêssor naysuffer thereby. L€66or DaY retaln such tion of the SecuritY

to restore or clean theDeoosit as lt reatonr-eäsed Preuiees f ol

e¡û5 neces The SecuritYvacat by Lessee.Depo sit ie noÈ to be chðra as rent until and unless so

apPl ied ln respect ofade t by L€ssee. If Lessor elects toSecuritY DePosit 6suÊe or apply

d herelprovldede¡nandportlIæ6se

on of thers fð

L€aEe.

ably delowlng

to ao

porÈlon of theIt ufthin ten (1

all orn,

therefor t o LêEsor ln cash, än arnountltv used or aPPlied bY Lessor, and

a

DepoÊ1tdo ahal

0) day 6 afeer vtr ittenequal to that

I be a materlal bre ach of thiÉten (10) day noÈfce 6pecÍfied

lted by ]ôin tbe preceding

itute fullrente shall lnsofar ae not prohlb w, constÊa ctlon of notlc€ of dofôult Prov lsions regulred by law or

Àstrcps e. usE

The Leased Premlees rnay be used ànd occupled only for thepr.tp"ÃË" -rp""itiäã--fñ--SéàÉfon I.? hereof' and for no otherpurpose ot ptrtpotãã. - ietsee 6ha}l plgnplly co¡npry h'ith aIl }av's'ordinances, oraeiã-ana-iãguf¡tions ätfettiñg the l,eased Premises,tñetr cleanllness, safety, occuPâtlon and use'. ÀRTTCÍ ' 10. COI{ETiIANCN }JÍTH l,À!.is ÀND REGULÀTTONS

LÆssee,'ehalI, at lts eole cost ônd expense,-comply u'Ith ôIlot tnã- rlóit"¡n""tl "f

ãif nunlclpat,,.state and federal authori-tles now in torcã', "i

wnict¡ nay hdreafter be in force, pertainingtã tt¡e Leased niéniees, and s-hall faithful.ly observe in the useof the L€ased pið*f""é aII rnunicipal ordinances and state and

federal Ftatutes -now ln force or r.¡hlch may hereafler be in force.

õtã--JïOgm"nt of any courÈ of. cornpetent jurisdiction, or thea¿rnis-sioi of Lesseã'in any action or proceeding against Lessee,v/hether Lessor Ue ï pirt' ihereto or not, thãÈ any such ordinance.,r atatuÈe pertainiriq tó the L¿ased PremÍses has been violated'Ãfr"if be co¡i.clustvo o-f thag Cact åÊ bstween L€t6or and Lessee.

SubJect,toLessorrswork,lfany,asr.eferredtolnExhibltrct to this *u*-iJs6ee heie¡y acðépts the Leased Premises intñe cãn¿ltlon "*fåting

as of th-e daté of occupanc-y, subject' toiïi apprica¡re zàning,-nunicipal, county and.state laws' ordinan-cãl, 'iules, t.g;iãÚlot", orãerã, restrictions of record' and

,ãq"ir.;ã"1'" i" - èif uct, durlng the term or any part of the ter¡nhefeof, regulatlng the L€aÊed Premlses'

For purpoEes hereof, - rrHazardous Haterialsil shall nean any

and a1I ifan¡¡¡a¡ie exploâives, radioactive material, hazardous,i"t",--tox¡," eubstancã or reÍated uaterial, .including buÈ -noCIinitåa to thosã maÈerlals and gubstances defined as lhazardoussubstancesrr, rrhâzardous uaterialstt, lhazardous Lrastesrr or rttoxicãubiii"""srr' f n the Envlronmental Lavrs. For purposes hereof ,.rEnviron¡ental Lawsrr shatl Dean the Conprehensive Environ¡nental'Response, Cornpensation and Ltability Àct, of 1980, 42. U's'c'Section 960l et Beq.i the Hazardous ttaterials Transportation.Àct,39 U.S.C. Section ieOt, et seg.¡ Èhe SoIÍd vlaste Disposal Àct, asamended by the Resource Consehration and Recovery Àct, 42 U.S.C.Section 6þOf eÈ 6eq. r the Federal CIean l.later Act, 33. U.S.C:Section 1251 eL,""qll the Clean Àir Àct, 42 U.S.C. Section 740Iet Eeq. i the Portei-Cologne Wðter Quality Àqt, -

California t'¡aterèo¿" S"åtlon 13020 et ee{., and the Ca}ifornía Health and Safety

I ØA(Iressee | 6InitlalsInltlals

FSOSFS-97

r*


Code, Sectlon 2 5100 et E-€Ç[' I l-nc.ludlng aII anendnents thereto 'replacements tf¡er'eïf ,-ina ïégufufioni -adopted and publicationspronrulqatea pursua-nïLr,ãieto' - Le.siee agreeä that during the ternof rh16 L€aÉe ;;;;"--;;"ri nor ue

- tn ílolation of any federal,srate or ro""i--iãrl---ãioir,on". or regulatlon relating toÍndustrlal hygiene, soil, wôte!f or envlroñmentðl conditions on'

under or ðbout t;;'L";;*i pre¡nlses lneluaing' but.not limited to'the Envlron¡nentaÌ LaL's ' ¡'€66êe f,urther airees tha! during theTerm of thls l^"""1-'itrere- sr¡att -be no use, presence, disposal,storage, generaÈionl release,..or iht"atened rèlease of llôzardousHaterials onr rrom''oi .¡na.r tbe Leased Pre¡nises' Lessee agrees

t.o indennify, defend, protect u"a-lola harnless Lessor' itsdirectors, officers, employeesr- p'Jtn"-t"' and a-9ents from and

against any ona'-ãrí ràåseå, .c'Iai¡ns, dernands,_ .actions, damages

twherher direct oi-ãori"-.-q-u-";tiaI), pênalties, Iiabilities, costsà;ä=""i;;";;;;-i.¿Ì"áins åit attornevs' rees and ì'esar exPenses'

arislng out of any v.lolatÍon .or .airäg.ea vio.Iatio-n of any of the]aws or requlattä;s referred to in -tnis Àrticle 10, or breach ofiñV-"i-tne-provistons of, thls Àrtlcle'

responsible for Janltorial servlce within the Leased Prenises'

e 3Ã2,'Lessee' sTn ì ¡i ¡ I c

.!

r

*Leseeã sha11 be..t '

LeÉ sor ' sTñ¡ Ê{ ^1Ê


.úIJh¡d

FI0,.0

¡ro€FIoIriÞà

F.iF

cÉ

áoo(Ëq¡

t{Ê

C)

IJ

ãÊFI(ü

øpoÊoo&oiÞ

{a

ÀRÎ5CI.E 12.. WÀsrE

Lessee6hallnotcom¡nitrorsuffertobeco¡nfni'ttedranywaste upon the r,easåá-pie¡nisei,.or any nulsance, or other act or;hi;é "hf"n rnuy distttrb the qúiet e.njoyment --of any other tenantãï-'ã"""pànt oi inã-ìðt pjex 'in which -the Leased Prem'ises areIocaÈed.

. ÀRTlcLD 13. ÀLTERÀTroNs

' Lessee shal, I not ¡nake, or suf f,er to be ¡nade' any alterali9nsto the Leased prernises, oi any Part thereof , r.rithout the writt,enIã.JäÀ'¿ --oï-i.åã"r tiist haa ãno obtained. * rn the event of;;;;;;¿ to alterãLi;;J. Lessee sharl give Lessor ten (10) days;ã;;;;; ,iit,t"n notl""'of, the srarr of work so rhar Lessor may

pãu[---r,ot,i"." or - nãn-responslbiliry. ]"y additions to, oralrerations of. in""iäouèá-piãtit.s,'except trade fixcures, shall;;;;-ãxËitutio" oï-tãttlnacion of this Leãse become a ParE of Ehe

,ããïrV--ã"ã Ueloni lo 'iuttot. Excepts . a.s otherwise provided in

this Lease, Less'ee shaII have the right to re.¡nove its tradeilxtures piaced -"p"n th.e Leased Premiies provided that Lesseeièstores t-he Leaseä Premises as lndicated below'

LesseeshallkeeptheLeasedPremisesandt,heco¡nple.x.invh1ch the ¡,...áã Preirises are situaced, f,ree- from af¡y liensäïiãï"g

--ã"f "f- ."V---õãii perforrned, materÍôls furnished or

ãËirgäËi"ñi- tr,"utr"o uy Less-ee'- rn the event a ¡nechanicr s oroÈher tien is fif;J;s;lntt-i¡," Leèsed Pre¡nlses or the comPlex ofwhich the r.eased -prãñi"es forms a part ^as.

a. r-esul'c of a claimarising through Les6ee, ¡,essor nay de-mand --"Ì1t -!u"tee furnish toLessor a surety u"ñaiitrufôctory to Lessor ln an amount equal toat least one n"ñãiÀa f trty perient ( xsot). -of. the amount of thecontest€d Iien clai¡n or de¡¡and, inde¡nnifyilS Lessor againstii;ùititi ¡or tne

-sa¡ne ana ¡of¿lni the Leased Prenises free f,rom

the ef f,esÈ of "u"f,-

-'li.n or clai-¡n. Such bond must be ,Postedwirhin ren trol-ãiüs

-t.iio"i"s notice from Lessor. rn addlLion,Lessor nðy requírè Lessee to pðy -Lessorr-s attorneyrs fees and

costs in pðrticipating Ín any u"1iá" to foreclose such lien ifLessor shalr a"c-íoã iC il to it's besc interesc to do so' Lessormay pay the clai¡n pçi9r to -the

-Àñioi"enent thereof in whlchever¡tLesseeshallreimburseLessorinful},includingatt'orney|5

k ø7(-TêsFeetsInitialsInitlals

rsosPs-97

10

.r.4


ri?

c¡q,) ¡Þ!oElq{ ooo ,4t{ o+¡orúo El¡Ðui r!!l¡E Oidq, rtl o 0¡¡..d (¡ >i!ooÞ ¡¡Êú+¡ O9ld9l-,

à+¡ Oqr.q ê¡o âto!Fl .ë d 0r-{Þ05lÚ l{É¡ouo dd.co'É aOHET{o È (É.cod Þo¡oidOE d {JÞìdd9.¡Þ tD EOÉEU

Þdoô Ì{O'-ê(r¡{JdEßÉ(ú k

ot.o0,oFloqJ9t9{J(/¡{J dFl (ô O

t¿ d O¡@o Ë{¿ÉuÊilF{ o Os{

Þ 6l¡r oC6do iogÐ |arH o oø O OÍit{.4¡ qi es e boi (Ú

ì.'t d +J ¡{ÈÞ\dqFiÐdJ¿ O Àô d (ÚE xZ o Ëìl q¡

.*

ttt

F{ (0d(ÚøeBl-l - Ì{ÞrrI OCrOo o oÊ,oH.q, þÐÉ o É(/) @q,,¡ +¡0!ÉãoO Ol¡ ÊÊ¡ rü

+J à€OT{H ÐJ¿ þï{rd u@Elo o vl

OÉqJhO Fld ôuEl!ô ø Ð

NÞO{rs E Éooç¡o@o(l0ÉqJE @ OÈu æìldU..Û,)F¡ t!J¿qJo }{l¡>o ñoooi ! u 3¡ oÈ(Ú9> dq{oo oq)0lioE(JOÌtPu ,&(d¡¡s, 6([email protected]Êr+{'-l o nd O rdl¿.ú >ß{(,d t/, O E¡dE¡þ Þu o ÀQ@Fl Ê.+¡ O,.q +J fg Ð9G Ir{f{}¡ Ht{loo ooûuil9FlôH t¡ d l¡:a .0 Àì{ È.

*+l

fees, for any Euci¡ expenÉ,e, as additlonal rent' with the next duerental.

Lessee shall return the Leased Pre¡nlses to Lessor at theexpir;¿lon or earl-ftr -tenûination of this Lease in good lndÃii,,iiutV order, "ãnåit.ion

and repair, free of -rubble and debriÊ,broot ciean, reas;;ab1e wear ànd tear excepted' However' Lessee;ñ;iî ãscertain rio¡n r*seor at least thirty (30). days prior toiñã-iet¡ninatÍon "f

-inf L€ase, vrhether ¡,essor desires the Leasedpre¡u.ises, or any pori ttt.teof I restored to its condition Prior tot¡¡e ¡oaXinq of Ée'r¡niitÀá alteiations, installations and inprove-rã"t", à"¿í if úiãôi-Ãñiff so desire, then L€ssee shalI forthwithi"rtoi" Eaid Leased pre¡nlses or the designated Portions thereofas rhe case Day-b;,

-i;-iiÀ orlgÍnal condition, -entirely at i!"9wn exPense, except,ing nornal wõar and tear. * ÀII damage to theLeased premlses ðäJJ"ã Uy tfre removal. of such trade fixtures andother personal property that Iæssee is permitted.to remove under¿h;-¿"h; of this ieasã and¿/or 6uch resioration ehalI be repai-redbt-I*;;;ã ii it" Êole cost ind expense prior to termlnation. **

ÀRTICTìE_l4. Þ4OPERTY lNSrrRÀNCE

No use shall be made or pernttted to be ¡rade on the Leasedpre¡nlses, nor acCs done, whlch-r,rlIl increase the existing. rate ofLnsurancå upon the guitding in Lrhich the l"eased Pre¡nises areIocated, of "aur" the cañcellation of any lnsurance policycoverini the Building, or ôny Part thereof, nor shaìl LesseeseII, áÉ pernlt to be-kept, us-gd-or sold, in or abouL the Leasedpremísesr any article uririch nay be prohibited by .the standardform of îire-insurance potiqies. Lêssee shall, at its sole costand expenser comply with any and all reguirements pertaining tothe Leãsed premises, of any insurance organization or co¡npany,necessary foi the maintenanèe of reasonable proPerty damage andpublic ÍiuUitity insurance,,covering the Leased Pre¡nises, thebuilding or the complex. Lessee agrees to Pay to Lessor, asadditional rent, ani increase resuiting fro¡n Lessor's use inpremiums on poli'cies'vrhich nay be carried by Lessor on the LeasedÞre¡nisés, th; Building or on the OffÍce Co¡nplex, or any blanketpolic j.es' vhlch inctudã the Bulldlng oI Cornplex,. covering darnagethereto and loss of rent caused Uy fire and other pelils abovethe rates for Èhe Jeast hazardous- type of occupancy for officeuse. Lessee further agrees to pay Lessor, as additiorlal rent,åny lncreases 1n guch-prenlums- r-esulting fr,om the nôture ofLeäsee's occupancy or añy act otr omission of Lessee' Lesseeãñifi malntain in'full ro-rce and effect on al.I of its fÍxtures,ãquipnent and pãrsonal proPerty in the Leased Premises, a PoIicyo; pol Ícies oi f ire an-d ðasuátty insurance in I'al. I risk, f ormvitli insurance to the exlent of ât least ninety percent (90t) oftheir replac€ment value cost reguired to negate the effect of a

co-Insurånce pro.ritl"n, vhichevór is greater' .. No such policyshall have a -deductlbie in a greater ahount than FM HUNDREÞ

DOLLÀRS (ssOO.OO). Lessee shatl also insure in the sane ¡nanner. añãiht"icat vatúe of all its Iæasehold lnpro-vehents. Drrring the¡."."ä ierm, th; proceeds from any such policy-or pol'icies.ofinsurance shaII Ë" used f,or the -repair or replacemen! of the;;;p¿;it so insure¿. l,essor shatl have no interest Jn theinrirranóe upon Lessee,s equÍp¡ne¡t and fixt,ures and will sign aIìdocuments necessary or PróPe} in connection uÍth the settlemenLof any claim or loês by"LeÁsee. Lessee shalt maintain insurancefor all plate glass upon the Leased Pre¡llses.

Thls Àrticle 15 is vritten ônd ðgreed to in respect of thefntent of the parties to asslgn the rlsk of loss whether result-i;;-t;";-t"gifô"t"e of the pðriies or other'rise, to the party whoii- óUffgatãa i¡ereunder to cover the risk of 6uch Ioss with

,., ,

l,essor'sInítials

wLessee'5Inltlals

FSOSFS-97

1l

----" --3ãt


lnsurance. Thus, the lndennfty and walver of clains.prov;i-añi; Leaae have as thelr obJect, so long âs such objectfñ -"lofition of publlc poli¿y, the assignnent of riskiärtfcufar casualty to thê party carrying the fnsurance follrX, b,ithouÈ respec¡ to the causation thereof'

t€ssor and L¿ssee release €ach other, and their respect,lveauthorized representatives, fron any clains.-for damage .t'o 9nyperson or to in" úoreà Piemises and the Buildinq ancl other f¡n-

ãiã"år""ts in uhich the Lêased Pre¡nises are located, and to theilxtures, personal property, Lessee's inprovernen-ts and altera-ii"n" of' either tæsior- or L€Esee, jn or on the Leased Pre¡nisesiñã trr" Building ând other lrnprovenents 1n whlch tl¡e LeasedI,reml6es are Iocáted, lncludIng -Ioss of, income, that are causedUV or result from rjeks lnsurãd or reguired under tl¡e terms oftñts L€ase to be fnsured agafnsÈ under any property lnsurancepolfcles carried or to be carrled by eiÈher of the parties'

Each pðrty ohall cäuse êach Euch lnsurance policy obtainedUy it to p'roviäe thag the lnsurance company uaives aÌ1 rights.ofräcov"ry Ëy way of subrogatlon agalnst eltt¡gr. party in connectionvith an-y damaje covered"by such-po1lcy. Neither party shall.bellable Lo theother tor any danage caused by fire or any otherri=X" insured against under any prbperty Ínsurance policy carriedunder the terms of this Leòse. If any such insurance po¡¡cycannot be obtained vrlth ô waiver of subrogation uithout paymen!of an addÍtional prenlurn charge above that qhårged .by th9Insurance companies- issulng suóh pol icies trithout waiver ofÊubrogat ion, tt¡e party recêIving the benef it s.hal I elect toeitheí forfeit the- benlfit or shalI pay such additional premiumto the insurance carrier requiring such additional premiun,

fln)Lessor'sInitials

i s lonsis notfor ar such

Lessee shall defend, fnde¡rnlfy, and hold harmlees Leseor fron all cla{ns atfslngout of any fnJury or damage to any peraon or Property lesuLtlng fron any defaultby Leseee under thLs Lease or flom the negllgence or ¡qlllful mfsconduct of teeseeor of any agent or emgJ.oyee of Lessee. I,essor shall defend, Lndemnffyr end holdharmlese Leesee fron all clafms arfsfng out of any lnJury or damage to any personor property resul.ting from any default by Lessor under thfs Lease ol fron thenegl-fgence o¡ wfl1fu1 mfsconduct of Lessor or of any agent or empJ.oyee of Leeeor(lncludlng wlthout llnltatlon Qontractorsr 6ubcontractors, or oÈher peraonseuployed ln connectÍon wtth constructlon of or on the P¡eurises).

ØzcLessee'sInitfals

FSOSTS-97

L2


ÀRTICI,E 16. LTÄBILITY TrySURANCE

Lessee shall, aù Lesseets expense, obtain and keep ln forceduring the terrn of tnis Lease, a

-conpr'ehensive general ]labilityi.å"iã"". policy insuring Lessor and Lessee againsg the risks of;;;;;;;i-iñiùiv'""å prip.#rv danase arisine our of the ownership,use, occupancy oi ¡itilttt"nånc" o? the Leãsed Prernises and arl"iãå. appürteñant thereto. such insurance shall be a conbÍned

"i"ãi" --f-f;ir póifci fn an a¡nount not Less than oNE MILLI9N

oóií¡ns (sl.ooo,ooo;oo) per occurrence and an umbrella pollcy ofTHREE l,tILLIoN po¡,f.¡'ns ' (5¡, ooO, ooo. oo) co¡nbined .silgle linit perãôà,.ir"r,r.. The poficy' énatt contaln cross Iiability.endorse-rãnii and shall iisure- performance by Less.ee o-f. the indemnityorovisions of thii Leasel Xn additloñ, such policy sh-all. coverã;;¿;;;aüãr-liÃÊiritv, and product,s Itabtlitv. .rhe li¡nits ofsaid lnsurance shatl-not, hoi¿ever, li¡nit any Itability of lesseehereunder. In the event that the Leased Pre¡nises do not con-stÍtute part of, a larger Property, said lnsurance shall have aLessorts protecttve tlãbllity endorsemenE attached thereto. Notrnåre frequently than every tñree (3) yeafgr if,. in the reasonableopinion of Lessor, the ãmount o'f llability Ínsurance requirednËi.""ã"t is not ãdeguate, Lessee shall prohptLy increase saidinsurance coverðge as required by Lessor.

ÀRTTCLÈ 1?. FORF.'EITI,'RE OF PROPERTY èND LESSOEIS LIEN

p+rtrt€€.-Þ€tgt'eÌ

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I,essee åErees thåt aB at the date of ternrlnatlon of thlsLease or repossession of the Leased Premises by Lessor, by vay ofdefault or otherwise, it shall remove all personal property t'ovhlet¡ ít has the righ! to ownershlp pursuant to the terms of thlsLease. Àny and ali such property of Lessee not renoved by suchdate shal1] at the option-of-Lessor, i.rrevocably become bhe soleproperty oi Lessor. Lessee vaives ôII rights to. notíce and alIcomr¡on Iaw and €tatutory clal¡ns .and causes -of action çhich ie nayhave agalnst Lessor Jubseguent to such date as regards tlt"storagel destructÍon, darnagé, Ioss of use and ownerslrip of thepersoñai property affected-by the terms of this Àrticle. Lesseeãcknowledles'Leisorrs need to relet the Leased Premlses !Þonter¡nJnatlón of thls Lease or repossession of the Leased Premisesand understands that, the forfeltures and waivers provided hereinare necessary to aid sald relettlng. and to prevent .Lessorincurring a Íoss for inabllity to dellver the Leased Premlses to. prospeétíve lessee. Lessee-hereby grants to Lessor a Iien upon.nä såcurity interesL in alI fixluies, chattels and .personalprop€rty of -ãvery kind now or hereàfger to be placed or installedin är oä the Leased pre¡nises and agrees tÌ¡at in tlre event of an)'default on the part of Lessee, LeJsor shalt have all the rlglrtsand remedies afforded the secured part'y by the chapter onIDefauItil of DivÍsion 9 of the Unifor¡n Co¡nmercia]' Code of theetat,e in which the Leased. Premises are located and haY, inconnectlon therewith, also (a) enter on the Leased Premises toassembl.e and take possession of the collateral, (b) requireLesse€ to asse¡nbIe- the collateral and rnake its possessionavailable to Lessor at the Leased Pre¡nises, and (c) enter theLeased Premises, render the collateral, lf equipnent, unusableand dispose of it in a rnanner provlded by the Unifor¡n Con¡nercialCode of the stðte in which if¡e Leased Pre¡nises are Iocat,ed.Lessee hereby deslgnat'es Lessor as his âttorney-jn-fact for

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purper

poses of execuÈlng Euch d.ocumenls as nay. be necessaryiããi *rt Ilen and eiecurlty. lnterest granted hereunder'

à,RTI.9LE 18. XÀrNtrENàlcE ÀND R-EPAIRS

to

€x, or

IExcept as to the consÈructlon obligations of Lessor, if any,

stated 1n Exhiblt rrcil to this Lease, as of, the commencemenchereof, Lessee ôccep ts the Leased Prem lses in Itas isrtconditionðnd as belng Ín good and sanltarY order, condition and rePairExcept as otherr¿l"se Provlded in this Leas e, Lessor shalì rePair,repl ace and ¡naintain the external and structural parts of thecomplex which do not co¡nprise a ParÈ of the Leased Premises andare not Leased to others, anltor and egu Íp¡nent closets andshafts within the Leased Prem

ji ses designated bY Lessor for use bY

1È ln connection with the oPeration and ¡na intenance of theConpl ex and all Co¡n¡non Àreas. L€ssor shall perform

e dispatsuch repairs,

repla cements and ¡nalntenance utlth reasonôbl ch, in a goodand workman l i.ke ¡nanner i but Lessor shal I not be Ìiable for anydamages,personal

dlrect, lndirect or consequential, or for damages fordiscornf ort, lllness or lnconvenience of L€ssee by reason

of failure of 6uch equiPnent, facilities or systens or reasonabledelays ln Èhe Perforrnance of such repair s, rep Lacenents andmalntenance, unless caused bY the dellbera¡e acÈ or omission ofLessor, lts servant,s, agents, or employees.any parts thereof, or improvements therein,or are damaged or destroyed through the negor ¡nisuse of Lessee, its agent,s, enpl oyees o

it init to be in the Cornplex, gr throughthe necessary repairs, replace¡nents or altera

Lessee who

a1 mechanical. and

repairllgence, cârelessnessr anyone permitted by

y, the cost ofshall be borne

iltures andelectrical equiprnent which

Leased Prernises installed

If the Complfall Ínto dis

ny v,ra

t, i onsa

shelving,equ ipnent

and specis not a he

by ordtnageLessorrepair in awriting. Le

v etat of repair and Lessee wilÌgood and workmanlike nðnner according to notice in

ssee agrees at the end of each business day to Leavethe Leased Premises 1n a reasonably tidy condition for thepurporê of the peiformance of Lessorrs cleaning services referredto hereln.' Lessee r.¡alves alI rlghts it lnay häve under l,aw tomake repairs at Lessorrs expense.

ÈRTTCLE 19. DESTRUC1nION

In the event the Leased Pre¡nises suffers (a) an uninsuredcasualty, or (b) a casualty trhlch cannot, be repaired r.rithin onehundred tLrenty (120) days from the date of destruclion under thelaws and regulations óf sÈate, federal , county or municipalaut,horit,les, or other authorltles wÍth Jurisdlction; or (c) acasualty uhlch occurs during the last. síx (6) months of theorlglnal term hereof or of âny extension, or (d) the complex orBuilding in which the Leased Premises ls situated be destroyed tothe extent of, not Iess than thirt,y three and one-third percent(33-1/3t) of the replacenent cost thereof, then Lessor tnayterrninate this Lease as of the date of the danage upon vlrittennotice to Lessee. In the event of a casual.ty to the LeasedPremises r^¡hich cannot be repaired withÍn one hundred twenty (12o)days of the occurrence thereof, Lessee shall have the right toterminate the Lease by written notice to Lessor within twenty(2o) days following the dat,e of the cäsualty.

In the event of a cèsualty which nay be repaired withln onehundred tbrenty (120) days f,rorn the date of the damage, or, in the

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alternative, Ín the event the partles do not elect to ternlnaterhis r,ease under î;-";;å; ãï-tñil ÀrtlcIe, then thls Lease shallcontinue ln full f;;;;*;nd ef f eci and Lessor shal'1 f orthwithundertake to rof"---"ìrãn-'iepoiq" to reconstitute the Leasedpre¡nÍses to ""

"n-"ui-ihe - cbndition as existed prior- -to. thecasualty as pracUièaUle. Such partial destrucÈion shaÌI in no

iäi-ã""ür;r î;lã this L€ase except that Lessee shall be entitledto a proporçtonotÀ--t.ductton of-Mlni¡num Honthly Rent followingthe casualty anal'ü"tii-inJìi¡ne the Leased Premlses are restored'ð"ã¡,- t-"ã""Cf"n shall. be an a¡nount whlch ref lects tt¡e degre-e ofiiãËti"-r"-n-""-riin'-i"""ê'i'business. so }ong a-s lessee conductsiË"-lirãl".rr fn'tf,ã-l,eased Pre¡nises there shall be no abatemenÈ

""tfl-tñä-purli""'-ágiãà-on -the anount thereof. If the- partiesãä""ãr-äõråJ-"ii,r,iñ'?ã;ry five (45) guy" oj rhe casuarty, the¡natter shalt Ue

-Jùü¡nftted to arUitrâtioñ under the rules of theÀr;;1;"; ¡iUrtraii"n-¡ssoctarlon. upon rf" resolution of, theliip"t". the ""t-ifãrn"nt shaII be reiroactive and Lessor shal Iwithin ten (10) áav" tt"reafter refund to Lessee any. surns due-lnrããpã"t of 'thti iãäucãá rental f rom the date of the casua)'Èy 'k;;;;is oUtiSatl.ons to restore shall in no way_ tnclude any con-ãtr"ãiió"-ãiiét"ãiiV l"rlor.eq by Lessee or Eubsequently. under-tal(en by r.eséee, - ¡ït' eÌraf f inciude solely . that property con-atructed uy r.essår Þ;i"; to corro"nce¡nent of -the term hereof .

The cost of any repalrs to be made by t'ess-or, pur:Ìllt,tothls Àrt,icle t9 of cnis Lease, shall be paid by Lessor ut j'l'Izlng

""ãiruur. Ínsurance proceeds. Lessee shaIl reimburse Lessor upÔn

ðompfet,ion of ttte'r"pairs fgt .any- ded-uctible for whÍch nolnsürance proc"édr wtÍf be obtalned under Lessorrs insurance;;ii¿y. òr'if other prenlses are ðlso repaired, a p5o rata share[ã"ãã""n totat cos€s of repair equitabty apportioned to theiãã".a premises. Lessee shail, howãver, not be responsible to;;i ;;y dedr.ictible or its Ëhare of any deduct^ible to the extent'inåt lässeers paynenÈ would be ln excãss of S10,OOO lf Lesseersconsênt has not 'been recelved by Lessor, unless such denial ofconsent by Lessee is unreasonable.

Àrylrcl,E 20. C9NDEHNÀTJON

If the Leased Premlses are totally taken by condemnation,this Lease shall terminate on the date oi taking. If any portionof the Leased Premises is taken by condennation, this Lease shaIIremain in effect,. except that Leisee côn elect to terminaÈe thÍs¡¡gu=" if 33-I/3i'oi rnóre of the total number of sguare feet lnthe Leased Prenises is taken. If any part of, the comnon ÀreaE ofthe Complex are-taken by condemnatioñ,- this Lease. shaLl renain inf uI I f orce ana 'ef

f eåt so ì,ong â= there .is no materialinùerf"rence ulth the access to thL Leased Pre¡nises, except thatf i -

tfrf rty p"rcent (3Ot) or nore of the Co¡nrnon Àrea is taken bycondernnaËIón, eitner párty shalt have Èhe election to terrnlnatethls Lease pursuant tã tf¡is Àrtlc1e. If fifty percent' (5o3) or;;;; ;;-in"'Àùii¿f"g ln which the Leðsed Premises are located istaken, Lessor "ñuif-ha.r. the electíon to terminate this Lease inthe manner prescríbed hereln. ff .either paqty e].ec-ts ^!oiãr¡ntnate thís Lease under the provislons of thls Àrticle 2O,

i"räñ'--p"rti is hereinafter referred to as the I'TerminatingÈarty")' it-hust termlnate by glving notice _to. the other part)'l¿h;' "Nonterminat,ing Partyrr¡- w-itr¡in- thlrty (19) days a.fte¡ .thenature and ext,ent of the tãXing have been finally determined (t,he,'Decision period"). The Teiminating Party shaIl. notify th9Nonter¡ninating fariy of the date of termination, which date shallnot b" eartie-r thañ sixty (60) days after the Terminating Partyhas notif,led the Nonterminalin-g paity of its election to ternìln-ðte nor lðter than the date of-takini. If Notice of Terminatlonl=-"äi-gi".ñ-"itf,in the Decision peri-od, the Leðse shall continuêin full force and effect except that Minimum Honthly Re,nt slal'l;; ;"ãy;ã- -¡V - -subtracring

tt¡eref rom an amount calculated by

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E Orl6rul>'dod'-{oo0, î, r{'909Èdþ!ou¡o-{ÞgÊ triluooÞÐ ðôFrlrtHÞ oH

U)Þ\ td !,¡ h+JddÉ El r*{oootucdûrào@É¡¡Orddqrê.

oo .O¡oÞ.Éuotü.o¡!!dçddÊrtoÈ{ oFl od-Ér{ Éd urg oÉ r¡{oo òo(ËÉþ9ilc{ oÊ€ ortqrd trodÞtÈÉpl{oo(üøoEt{-rJ'd þ¡¡i{rl oal0oFl+¡F U¡.Éo5()Bã oÈl

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hul.tiplying the Hlnl'mu¡n Monthì'y Rent ln ef fect prior to thelãËiñã-ïi

-" rractlãn tne nume;ator of which is the number of;il;;Ë iãet taxei-iti^ i-n" Leased Prenises and the deno¡ninator ofvhich ls the nunb;; of Equare feet in the Leased Premises priorto the taking. --ff there ls a pa1!ia-I taktng of the Leasedãl.rJr"t-""ã tfri" i"u". rã¡nains in tull force and effect pursuant;;-'ïñi; ir1r.r", - i.=ror, ar irs oosr, shart accornplish -arrÃã"""iary restoraîion "o åhat the Leased Premises is returned as;;;;-;;-'prããii."f to lts condition irn¡nediately prior to the dateäi- tnã äãxing, b.,¡ ln no event shalt Lessor be obligated toãrp""J nore ïor 6uch restorðtion than the €xtent of fundsactuallv paid to Lessoi by the conde¡nnor. Àny award arising fronä;-;;;å"-r".iiån ðr the säÈtle¡nen¡ thereof shall belong t.o and beoaid to L€ssor except that L€ssee shall receive fron lhe ðwardã].p."ãi¡.o" ror- tnË f,ollowing lf specl_f ied in the award by theããnã.u,ning âuthority, Êo toni âs it does not reduce Lessorrsã*ii¿ ln iespect of'åhe real froperty: Lêsseers -trade fixtures,ianglble peisonal property, - gooawùI, Ioss of business ôndreiõcatlon- expens"s. -Àt -ô11 event6, L€Esor shaII be sol€Iyentltled to all iward In reepect of the real proPerty' includlngthe bonus value of the leasehol.d. Lessee shaLl not be entitled toÀny iwara until Lessor has received t,he above su¡n in fuII'

ÀRTlCr.E 21. ÀSSIGNITEì¡T ÀND ,SUBræTTTNG

The purpose of thls Lease ls to transfer- possession of theLeased prèmíåes to Lessee for Lesseers personal use in return forcertaÍn benefits, inqluding rent, to be transferred to the Les-sor. Lesseers riqht to -assign or sublet as sLðLed in thisÁrit"fu is subsidiaiy and lncldental to the underlying purpose ofthis Lease. Lessee acknowledges ðnd agrees that it has enteredlnto this Lease .ln order to acquire thè Leased Premises for itsã*n p"r"onal'use and not for the purpose of obt,aining the rightto convey the leasehold to others.

Lessee shall not suff,er a Transfer of the Leased Pre¡nises orany lnterest therein, or any part thereof, or ðny right orprivilége appurtenant thereto lrithout the prior written consentäf ¡,.stór,*ä-na ð consent to one Transfer of the Leased Premisesshall not be deemed to be a'eonsent to any subseguent Transfer ofthe Leased Pre¡nises. ÀnY Trånsfer of t,he Leased Premises withoutsuch consent shall be void,. and shall, at the option of Lessor,termlnate thls Lea6ê. Lessor ¡nay exercise a or alI of itsrlg ht.s under Àrt.lcle 26 hereto.

**

ÀRTTCI.JE 22. ÀBÀNDONI.IENT

Lessee shall not vacate nor ôbandon the Leased Pre¡nises atany time during the Lease ter¡n, nor per¡nit the Leased Pre¡nises toreirain unoccupied for a Perlod longLr than ten (lO) consecutivedays durÍng the Lease tern, and tf l,essee shal.I abandon, vacâte1¡r surrendãr the Leased Premises, or be dispossessed by Processot law, or otherwlse, any personal property belonqing to Lesseeand remalning on the Leãsed Prenises afber such t'en (Ìo) dayperiod shall, at the oPtlon of Lessor, be deemed abandoned.

ÀRTtcLE 23. ENTRy BY LESSoR

Lessee shal.I perrnlÈ Lesaor ånd Lessorrs agents to enter theLeased Prernises Ct aIl reasonable tlmes for the purpose ofinspecting the Éame or for the purpose of naÍntaining theauiidlng,'or for the purpose of ¡nåÈing repairs,. afteratlons oraddltioñå to any portl;n äf tfre auilding, includlng the erectionand ¡raintenance oi such scaffo)'din9, canopies, fenceE and propsàr may be required, or f,or the purpose -of posting notlces of

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non-responslblllty for alteratlons, a-dd.ltlons or re-pairs' or forthe purpose or piaõing upon the Éutlding any . usual or ordÍnary;iã.

"ãi"" signË, witiouL any rebate of rent . and without any

Iiability to Lessåe ioi any loËs of occupation ol guiet enjoymentof the Leased Premises thereby -occasioned, .and shalI permittessor, ¡tat any titã "fiñin ntnet]y (so) days prior to the explra-tion of this Lease, to pÌôce upòn'the ¡,eäseo Premises any usualãi-ãroi"oty ,,ro r-*Ú, ór ï,to leaåe'r s19-ns.. I!1,:.ì:ti"l'e in no wôv

ãirã.i" inË narnienance obllgatlons o' the Parties hereto'

ÀRTIELE 24. SIGNSo

l{d.oÍri thûJll IoÀ ÊøooO E¡ËË Þr

OCJ Ê.! f/,o,cÊq oo9>¡ ød(Jè0r{ u

-ddoÞ ,Ér{sdqji û)oc,$tiquø th

ocl oÉTt Ë()l¡é o3qJ Uoô0!! {¡OU'¡

É .dá oio po oo

C{ il4 l¡ dI OdÞì )vt9¡J (/>rÊÊo(do o þrJt>! 0, ru^

ÁÚlsOtd t F-t¡sFl O¡J riÞu

E¡ST Êdr.l (DrH oojE'{J O d EilÀo?lÉÞ¡üTi,.qT{o o u rF{!xodrua(,l Ê ¡ rd

Comp Iex, anY exter.lor slEn s t¡r advertlse¡rrents nor a

s¡.gn s or advertisements that are visibl.e f,ron thLeas ed Premises, wlthout LeEsorrs priorLêÊsor reserves the righ t to wlthho

Jf

lts sole udg¡nene. The costenance o any such eiexP ense of L€ssextenslon

r loror of the

n consent, whichany aesthetic reason in

ta t I atlon and regular main-ved by Lessor shall' be at the sole

the termina t,lon of this Lease, or ônY

, Les see ehall remove alI his signs, and alled by euch removal shaII be repalred at Lessee I s

.* .ta*

ÀRTICLiE 25. DEFÀU-I,T

The occurrence of any of the followlng. shaIl constitute ô

¡naterlal default and breaïh of this Lease by Lessee: (a) an)'failure by Lessee to pay the rental or to nake ðny other paymentiãã"iiea 'to be madg: Ëy Lessee hereunder* ulr,ea-4ue; (b) tf .abândonnent or vaCation- Of the Leased Pre¡nises by Lessee in

"iãiu¡i"" of Àrticle 22 hereof; (c) a failure by Lessee toobserve and' perforn any other provision of this Lease to beoUserved or pårforned by- Lessee, where such failure continues forten (10) days aft,er written notice thereof by Lessor to Lesseeiprovia..i, hówever, that if Èhe nature of the default is such thattfre same cônnot reasonabJ.y be cured within the ten (10) dgyperiod'allowed, Lessee shatt not bê deemed to be in default ifLess"e shall, within 6uch ten (10) day period, com¡nence to cureand t,hereafter diligently prosecute the same to conpletiont (9)the appointment of J receiver (except a -receiver appointed at- theinstanðe or request of Lessol¡ t,ò take possession of al I orsuustàntiarry arr of the assets of Lesseei a ç¡eneral asslgnnentby Lessee ror the benefit of creditorsi âny action taken orsüffered by Lessee under any insolvency or ban-kruptcy act' Ànytwo (2) failures by Lessee to observe and per.fonrn any provlslonof thié Lease durin-g any twelve (12) tnonth period of the tern, assuch may be extendeã, snatt cgnstitute, at the option of Lessor,a separate and nonqurable default.

ÀRTTCLE,26. REXEDTES UPON, DEFAULJ

The various rishts, optlons, electlon powers, and renedlesof Lessor contalned-tn itriã Àrticle and elsewhere in thÍs LeaseshaÌ I be construed as Cunrulative and no one of the¡n exclusive ofany oeherÊ or of any legðl or equitable remedy which Lessor ¡nightotirerwise have in - the event of breach or default, and theexercise of one rÍghE or renedy by Lessor shall not in any wayirnpair lts rlghÈ tõ any other iignt or remedy. In the event ofanl' default by Lesseei then in ãOAition. to ôly other re¡nediesa.ráiloble to Lessor hereÍn or at law or in eguity, Lessor shallhåve the immedlate option to ter¡nlnate this Lease and aIl rightsof Lessee hereunder Éy giving written not,ice of such inCention toterminate, In the ev-enl that Lessor shall elect to so terninatethis Lease, then Lessor rnðy recover from Lessee: the worth àtthe time of award of any unpaia rent LrhÍch had been earned at theti¡ne of such terninatlo-n; plus the Worth at tÌ¡e time of award oftu ØZt-

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the anount bY vhich the unpa ld rent which would have been earnedexceeds the a¡nount ofafter termlna tion until the ttme of award

such rentaL loss LeEsee Proves could have been reasonablYavoidedi PIus the uorth at tbe t l¡ne of award of the ðnount bY

which the unPa ld ren t f,or the balance of the t ertn after the ti¡ne

of award exceeds the anount of Ëuch rental loss that Lessee

proves could be reas onably avolded; PIus any other amount

necessâry to comPensate LeEsor for aIl the detrj'¡nent Pro x ina teI Y

Lease or vhich ln t,he ordinaryobllgations undevents would be

er thiscaused bY Lessee ¡ g failure to Perform its

Ì ikelycourse ofto result therefro¡ni and aÈ Less or I s elect'ion, such other anountsin addltion to or i n lieu of the foregolng as may be per¡nlttedfrom tÍme to time bY the I icab Ie law in the state in which theLeased Premises are I'oca The term Itrentll

rthe Xini

as used in thisLea se , shall be dee¡ned to be and to nean ¡nun MonthIY Rent

and al, I other suns required to be Paid bY Lessee Pursuant to theterns of thls Lease

thLs tease, to reencer rty nay beand proPertY f rorn the Leased Premisesi suchewhere at the costremoved and s tored In a Publlc warehouse sorrs option, aIl ofof and for the account of L€ssee or

t improvenents, add itions,Lesseers fixtures, furniture, ealterations and other Per propertY, shall remain upon theLeased Premlses and t, event, and con tinu i nq during the

t,h of such de Lessor shall have the sole r ight to take

Lessor shall also hav

lengexcl on of such

unttl alI defaultsproperty and toare cured or, a t, Lessorrs oPtion,

appted

e the rlght, viththe Leased Pre¡nise

or wlthouÈ te ngs and rernov persons

use it, rent orusive pocharge f

¡ne during the ter¡n of this Lease, to require Lessee toat

In the event that Lessor shalt elect to reenter, or shal-ItaXe fäss"usfãn of the Leased Premise.s pursuant to.leqaI. proceed-i;; di pursuant to any notlce provÍded by law, then if Lessordoes not elect io te"rrlnat. tt¡is Lêase as provided in thisÀrticle 26, ¡essói nay fro¡n tl¡ne to ti¡ne, Hlthout terminatingïhi;-ilu"e, €ither recõver aLÌ rental as lt becomes due or reletth; Leåsed Pre¡nises or any part thereof for such term or termsand at such rengal or rãntals and upon such other terms andconditions as Lessor ln lts sole discietion, rnay deen advlsable

"iiÀ- ifr" right to- io¡gu aLterations and r-epairs t'o the LeasedPremises.fnthe,eventthatLessorshalletecttolsorelet'tl¡en;;;î;i; reqàlved bv Lessor from such re)'ettlng Êharl be appried:iirrt, to the payñ.nt of, any lndebtedness other than rent duehereunder fron Ldssee to Leslor; second, to the Payment' of anycost of such reletting; thfrd, to the påymenL of the cost of anyalteratlons and repai-rs to tlie Leased-Piemises i fourth' to thepayment of rent Jü; ãna-unpárd hereunder; and the residue, lfã"V,- =¡ufi U. held by Lessòr- and applied -ln.payrnent of futurerenÈ as the "a^ã-."y'beco¡ne

due and -payable hereunder. Shoul'dlñii port,ion of suth' rentals received'fr-om such reletting during;;;-rã;th,-vr,icn is apprled by. the payment.of rent hereunder' beleãs than the rent paiáUfe aufing thal month by Lessee hereunder,irtã" ¡,à"ree shall Ëay sucf¡ def iðÍency. to Lesso¡ -immediately upotìdemand therefor'by'l,?ssor. Such deliclency shaII be calculatedand patd monthly.- Lessee shall also_ pay to I"essor as soon 6sisceitainea, ani costs and expenses fncurred by Lessor in suchiãiãiting "r tn'rnakfng such altera!lons and repaírs not coveredbv the lentals received from such reletting. No reentry.orIåxilg pãsserrion or the Leased Pre¡nises or any other actionunder-this Àrticle shall be construed as an electíon to terminatethÍs Lease unless a wrieten notice of such intentlon be given toLessee or unless the ter¡nination thereof be decreed by a Court ofcompetent Jurlsdiction. Nottrithst,andÍng any reletting withoutteririnatiorí by Lessor because of any default by Lessee, Lessor;;t'-;; -ãni l1t . af ter Euch reletti-ng elect to . ter¡ninate thisLeãse for -any such def,ault. Efforts by Lessor to mitlgate the

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Ut!Êoá0,Èp!(¡,øþouoÊTt(úò0rs

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danages côused .by Lesseers--default in thls Lease shall not

conscltut. o *orlär of r'êÉ80116 t1!n9 to, recover'damages here-

under,norshall'iãe'orhaveany_õËrtgatronto¡nltigatedamageshereunder.

ÀRTICLE 2?. SURRENDER OJE I'BÀSE

the voluntary or other surrender of thls Lease by Lessee' or

a mutual con"ert'Jtiå"-;il;;";¡;-;h;i not work as a merser' and

shall, at, the option of Lessor,-"lãrrlnut" alI or any existingeubleases or t.,Ëlãninci"", gr DaY, at the . op.t'ion of Lessor'

operate âs an ";"'iî;Ë;ïïo it oi'åny or alÌ such subf eases or

6ubtenancles.

In the event of, def,ault, breach' or vlolat'ion by Lessor(which ter¡n includes Lessorr e parlnãi",' co-tr"ttturers, co-tenant's,of f icers, dlrectors, employ-eesr.. agents' oF- rep-resent'atives) ofany r.êEsor't o¡iiõJú.i."ií¡rïq"¡'tnlÉ ¡'ea'se' Lessorrs riabiritv toLessee ehall be--I'i;itea to it" åïr*i.r,ip'int.t""t in the Leasedpremlses (or its-iüiãiãsr in tr,á"õãmpi.i, if, app-licable) or theproceeds of. puuif" sale of suctr inceiest Pursuant to fore-ctosure or . :.rJgï.';; ";;i;";Ll"ot'

Lessor nav' at it's option'and among fr" o[ñãi ãItérnatlv"",-iãiiuuã-ttserr-ðr ar] Iiabilltvunder this ¡,""rå--ui- .äî.vlnl 'tn" Leased Pre¡nises to Lessee.

Notwlthstanding any such . t"n"tiãntt ' - Lessee',s I easehol'd and

ownership lnterest''shall not meiåã'--!t"1"-t (as defined in thlsÀrtlcle 28) shall not be p"rror,ä1iy .liable for any deficiencyËåvãtã-itï lnterest 1n the Leased Pre¡ntses'

. ÀRTICÍ,E 29. ÀlToR¡lEvfir FEES

Lessee hereby agrees to PaY, ,as - -addltlonal rent' aIlacÈorney t s tees an'A dísburse¡nentÃ,

- and. aII - ot'her court costs or

;;;;;;;å -"f råsãi- prl-..ãain;" -¿; orher re.eal servi.ces whichLessor.toy .r,".ü;; p;t out bf reason of , or in connection with¡

(a) anv actlon or proceeding brought-by-1":::: "f:::i:Lessor o¡tåin. -u fÍnaI judgment or aw-ar-d -againsE Lessee

îi"ãl"ai"g aruitration¡ on ãccdunt of any defaurt by Less€e lnthe oþservun",

-ðr perf'ormance of iny obtigatlon under this Leaseincluding, ,but "åt'f i¡nited tor. ¡nattärs lnvolving payment of rentand additionat "iã"i1"'-Jü"üdi"n" -

"r other Lésseers work and

6ubfettlng or asslgn¡nenci

any actlon eedlng broughtor enploYee of

bv Lessee againstLessor) 1n which

Lessor i

or proparfner

(c) any other appearance by. Lessor (o¡. any officer'partner, oi'empfo'y""-"i-1,.u'"'"rl as a witness or otherwise in any

act,ion or preceeding whatsoever involving or affecÈing Lessee orthls Leasei

(d) any asslgnment, sublease, or leasehold rnortqageproposed or grun'cuJ-by - igr"gä (whether or not permitted undertt ii r...re), ánd ãif n,igotlations wíth respect thereto; and

(e) any alteration of the Leased Premises by Lessee'and aII negotiations with r€spect thereto'

rn any action or proceeding re.ferred. t" ILessee snaÍt be entitled to recover its attorneyii 1,."t". is the prevailing party against' Lessor'

7.kLessee I 5

(b)Lessor (or anyLessee f,al1s Èo

s90rInitlals

rsosFs-9?

officer,secure*

n sectlon (a) ,fees and costs

l9

:s

I nitl aI s


Lesseers oþtfqatlons under thls Àrtlcle shall sun¡lve theexptrarion ot o.y-ãË;;;"i.;i-;"tiãn ãr thls Lease. 'rhls Àrtlcle1s lntendeo to "rpifä^ãnt-(ana

¡o.t to li¡nlt) other prov-isions ofiñfå'Ëå"; p"tt;lrifng to lnbe¡nnltles and/or attorneyrs fees'

any gf the Provaddltlonal rent

isi.ons of thls 9rees toenforcePaY, ås s fees and court costsreasonabl uhether or not Legsor commences any

Thls Lease' aÈ LeEsorre shall be Éubordiñace to anyground leâse, hortgâge, deed , or any other hypothecatlonf or secur!,tY now or hereaf,Cer pIaced upon the real operty ofwhich the Leased Pre ¡nlses are a and to any and advancesmade on the securlty

tls ¡ replthereol an aIl renewals, nodi fications,

consol ldatio acements and extensions thereof. Not-withstanding such subord Inatlon, Lesseers rlght to quiet posses-

1f Lessee isslon of the L€aÊed Pre¡rises shal I not be dlsturbednot fn default and shall Pây the rent andoþserve and perf,orm

s otherwlsef this Leas e, unless this

Lease 1 to its terns. If anymortgagee, trustee hatl elect to have thisLease prior to the llen of lts nortgage,

notlcedeed of trust or ground

lease, and shaIl thereof to Lessee, thisLease shall be de

give writtenened prfor to such nìortqage, deed of trust or

ground lease, whether thfs Leas e is dated prlor or subseguenf tothe dôCe of sa ld mortgage. deed of trusÈ or ground lease or thedate of recording thereof' Lessee agrees to execute any

makedocu-

red to effectua te such subordination or toto the llen of any ¡nortgage, deed of

#trust or ground

lease. as the case may be, wlthJn ten (1o)days after wr ltten demand¡

ÀRTTCLE 30. NOTTCEg

All notlceÉ, denande ånd requèsts required or permitted tobe given or made "iãär-'ã"V--pro"iËi""

of this Lease, shall be ln

"iiËirig--""ã in"ff'u"-gi"Ën- or ¡nade by personal service or bvrnaÍlÍng Ëame ¡y-r"gl"Ëãre.O_ or c"rtftied mail, return recelptrequested, po"t"gå-"-P-tãPãfdf --or- by rePutable- courier whlch;;;;iã;;-;rr[iãn ävraäncã of derlvery, addressed -to rhe respec-ii"å-pãiti-ãt tfte address 6et forth in sectlon 1.2 of thls Leaseor at Êuch other -"AAr""s as the party ¡nay ¡fot time to tineaãsignat", by a written notice, aent to the other in the ¡nanneraforesald.

Àny such notJ'ce, demand or request (ttnot,i.cex) shaII. be

Oeemeã ii.r.n or ;ãã;-'on ttté third _day- a.fter the date so nail'ed'ñåi"iinJt"naÍng tné

-ror"going, norlce given r¡y_ petsonal delivervto the party at 1ts addfess -às aforesiid, snãff .be dee¡ned given;; ùi;; å.v ån wt¡icn delivery ls. made' Notice -given bv a reput-able couri.r ""rui". *nteft þrovides written evidence of deliveryshall þe deened ql"ãn on ttie business day inrnedlately followlngdeposit wlth.the courler ËervXce.

Each person and,/or entlty nhosê slgnature ls. afflxed to thlsLease as IJessee or ãr guarantor of Leslseets obligations (t'oblt-;;;;t àeslgnates 6uch olher obllgor thel¡. ag-ent for the purposeði- rL.eiviñg any notice pertaini-ng to this -lease or service ofÞrocess in itre ävent of ãny lttig-ation or dispute arising fronãny obliqatlon lnposed by thls Lease.

ÀRTTCLE 31. SUÞORDINÀTION

optlon,of trust

partdto

pralI

ro long as L€sseealI the provlsions oterminated pursuantor ground lessor s

¡nents requlLease prior

aIl part.les, thaÈ ure to exe

this

It lscute the

understood bYsubordination

ø/J--'LeEsor ¡ I

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documentsreferredtoabovernaycauseLessorserlÔusfinancialä;;;ä";; ã."Jñg th"- ritrur. of- a f inancins or sale trðnsacLion.il;;;; shall attärn-to aþ purchaser at.any forecl-osure sale, orto àny granteê "r-iron"reí.á

a"ifgnated in ãny Deed given in lieuof foreclo6ure.

ÀRTICLE 32. ESinOPPFÍ. CER{TFICÀTES ÀND FINÀNCING

t{lthlnten(10)daysofrequesEthereforbyLessor,Lesseeshall €xecute a vrllten-statement acknowledging.the cotnnencenent;;ã-;";iñJtion aates of, this Lease, rhar lt is in full force and

ef fect, has not Ë;;- ¡oãáîriàa (br if it. has, stating. 6uch¡nodificatlons), uná--prouláiñq on' btn.r pert,Inent.lnformation as

;;;;; or rts' uså;i ñiáni-rèáronäury. r_esuesr.. Fallure to cornpfyritñ- tnl" -À;tIcG -"fr"if be à hateiial -breach of this Leas€ byi*="". --ãi"i"q l,""r"i-ãf I rlghts- and remedles under Àrticle 26

hereof, as well';;-; itgni io danages ca.used by the loss of a

¡åã" ãi safe which nay result from such failure by r'essee'

ÀaTIqr,E 33. r{ÀTvER

The waiver by Lessor of any breach of any Lease.provisionshal1 not be O".rn"i ao-b¿ a waive-r of Êuch lêase provtsion or ðny

=uuããq"""t breach of the såme or aly other tertn, covena-nt or;;;ãi€i;r t.herein contained. Tl¡e sublequent' acceptance of-rentf,ãrèùnaer Uy Lessor ehatl not be deemed to be a vaiver of any

iriå"ããinS bieacl¡- Uy l,e"s". of any provision of this Lease, otherih;;- th; iaiture'of Lessee to- Ëay the particular rental soaccepted' regardless of Lessor's' inowledge of such precedingbreaêb at the- tine of ðcseptance of such rent.

. ÀRTICI-E 34. HOLDING OVER

If Lessee should rernaln ln possession of the Leased Pre¡nisesafter the expÍration of the Lease ter¡n and ùrithout executing a

neL, Leðse, tlien, upon acceptance of fent by Lessor, such holdingover shali be cónsirued as â tenancy from ¡¡ronth to nonth,.subJectto aII,the condÍtions, provlsions ãnd obligatlons of this Leaseas existed durins the'Iäst month of the term hereof, so far asáfpLicabfe to a i"nih io ¡nonth tenancy. -exc-ept. that the Mini¡nu¡nUäirtnf y Rent sha I I þe egua I to * tr**ee- the Min l¡num Month l.y Renf;;y;Ëtå i¡nr"ãiuiãiy prfor"Lo the expiration or sooner ter¡ninatlonof Èho L€â4.6.

ÀRTICI,E 35. . SUCCESSORS ÀND ÀSSTGNSc{o

È.q()uì*

The covenants and condttlons herein contained shal],to the provisions as to asslgnnent, apPly to and bind thesuccessors, executorÉr adnlnistrators and assigns of allparties heieto¡ ana ált of the partles hereto shall beand severally liable hereunder.

ÀRTTCUE 36. TT¡{E

Time ls of the essence of thls Lease L,lth resPect to eachand every artlcle, secÈlon and eubsection hereof.

ÀRTTCLE 3f.' ITFFEET OF I,ESSOR.S CO}ÍVEYÀNCE

I1, durlng the ter¡n of thls Lease'.I,essor shall sell itsinteresi in thã Bulldlng or Conplex of which the Leased Premisesforms a part, or the Leased Prenises, then from and after theeffectlvd ¿ate of th€ safe or conveyance, Lessor shalì berel.eased and dlscharged from any and aIl obligations and respon-sibi]1tles under thii Leaser exCePt those already accrued'

?Ek-ssor s Lessee I s

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subj ectheirs,of the

J oinEIy

2t


ÀRTlcLE 38L colqloN ÀREÀS

Theterm|tconnonÀreas||asusedhereinmeansallareasandracifiïies

--àut"iã" the Leased Premises,. within the exÈeriorboundarles of tne-compiex-, that are provlded and deslgnated by

r,essor f rom time -to -iime ior the genera-l use a,nd convenience ofLessee ând of oth;r tlnants of Leisor having the com¡non use ofsuch âreâs, and'Ëtrãr"-i."pãctlve authorized ¡epresentaLives and

invit,ees. Co¡n¡non-Àiuui i'nc1uOe, vithout linit'ãtion, driveways'parking areas, sidewalks, and landscaped areas' dl as generallydescrlbed on rx¡¡itrt ilþrr attached hereto. Exhiblt rrBrr istentatlve ànd t¿;;.r reselYes the right to ¡nake alteratlonsthereto fro¡q tlue to tlrne.

L€ssor shall, 1n a ¡nanner lt dee¡ns proper in lts opinion'¡naÍntaln tne co¡n¡i'J" Ïtuã", ãstabrish and enfoice reasonable rulesä.å-'i"gùrotIot," concernlng 6uch. areas, close any of the common

Àreas ro vharevJJ--;;i;;t- retufrea i; the opinion of LessorrscounseÌ to preveñi

"- A.af.uttoï of any of the êom¡non Àreðs or Che

accrual of, any rlghts of any. pãrto'n or of the public to !h"common Àreas, "rãËä-1..poriÍirv

àny of the c.omhon Àreas formaintenance pttpït"", añd ¡nakè chånges to t^he conmon Àreasî;;Ï;ãï;;,

- "itr'!ut-

- iltitutlo', . chan{es {tl the I'ocation or

driveways, .ntt.nè"u,-ìiltt, vêniculai parkin.g spaces'- parking;;;;; t'¡r"' aàirg;;at;; of aräas for che excLusive use of others'ttã-åii""tion o.f the flob, of traffic or construetion of addltion-ãï-Sri1ã1n!s tnereupon. Lessee hereby acknovrledges that Lessor1s under nã obligaglon to proviile security for the Common Àreasbut ¡nay do so ôt lts oPtlon.

Lessee shall pay to Lessor, as additional rent, lts pr9p95-tionate share of cån¡ion Àrea cosls as hereÍnafter defined, withiniãn tfO) days of receivlng a bill theref,or fron Lessor, but nonore'fråqueritty than rnonthly. Lesseers proportionate share (or,,pro ratå ¡',¡ -shaIl be thag fraction of Comnon Àrea Costs then'umerator of whlch is the nunber of sguðre feeL ln the LeasedPre¡nises and the denomlnator of r"rhich is tl¡e gross leasable areati ¡uitai¡g" in the co¡nplex having the use of the common Àreas.iå""..;"-initiaf-fro rala t of Cã¡nmon Àrea Costs is stated inSection 1.8. Ñotïit¡standlng the preceding provisions of thisÀrticle 38, Lesseets proporgitnate êhare as to certain expensesincluded i;'l Common Àrea

-Costs may be calculated differently to;Ï;iã-. higher percentage share fdr Lessee as to certain expenses1n rhe evenr ¡,"å"ãi-Ëãiñftã ãif,.t tenants in the Cornplex to lncuriuch expenses directly rather than have Lessor incur the expensein co¡nrnon for the CoripleX. In such case Lesseets -

proPortionaÈeshare of the applicable exPense shall be calculated as havlng as

it" deno¡ninatoi-' tn" gross 'leasabl,e areâ of aII Premises in t'heõomplex less the gro=i leasable area of tenðnts who have incurred;";ä- ã"p"""" dtrettty. rn any case where I''essee, Yt.'t-!-!:?::::"^consentl lncurs sucli expenses directly, Lessee'E proportl.onaEeshare of Common ¡rea Coäts vill be calcuLated specÍally so thatãip"n="r of the Êame charact,er whlch are incurred by r.essor forthä benefit of other tenants in the Cornplex shafl not be pro-rated to LesÊee. ---N"t¡ti"g nerein ËhaII i¡nply thàÈ Lessor vilLpàrrft, Lessee or åny othef_tenant of the Co¡npl,ex to incur Common

Àrea Cost,s. ¡ni "uên pernlssion shall be in the soLe discretion

ãl-Lir"r, which r.essor này grant or withhotd ln 1ts arbltraryJ udgmenE.

Itcom¡non Àrea costsrr tneans al I suns ( including t'capitalcost.srras hereÍnafter defÍned and to the extent stated herein)expended by Lessor for the supervision, maintenðnce, repairt-Te-plãcement ãnd operation of the Common Àreas, ås well as li'abilityI;;;;;;;; piàtiïitu and securitv services for the conplex' plus-analfowance of, iàñ p.r..nt (lbt) of such. su¡ns to Lessor foradminlstratlve f.".' Capital'Corir are defined as those expendÍ-

,ø,_Lessor I s

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q

UA?l{,opoÊl{ c,¡

5od-aOÌlC, r-{ooo'õcrFl a,

þq{(do

v,øE>r¡(ËØÈ

^orlãv0U9>di¡q9

Êor{O.É ì{p!;olÊ*

tures$rhichdonotnornallyrecurmorefrequentlythanatfivei;t-t";;- int.erva'is i" tt,. ïor¡¡at course of operation and nain-tenance of the co¡nprãx' Notwlthstanding a-n)tt¡in'g above \¿hich naybe to the contrary, conrrnon Area Costs shall include a portion ofãif -ð"pftal Costsi'r"pr.uuttlng any costs. of capita)' improvements¡rade by Leasor 'to ïne Cornpiex

- for the purpose of reducingi"è,rrri'ng expenses or utlltty costs and from which Lessee can ex-,,ecr. a r-easona¡Ie ¡ãnetitr'är that are reguir"d ÞY governnentaJ'i;;; ;tãi;;;¿t, resuratlon or . mandate ' not a.ppl icabr e to thecomÞlex at the ti;J-ãi-tne orlginal construction. The po¡tlon;;ä;;;; ;; Ë- included each year in co¡n¡non Àrea cosrs sharr be

iüit iioction allocable to thè calendar year 1n question calcul-;[;ã ;y--";o;tiilng the cosÈ over rhe räasonably .useful life of;""h liprovement-r''as Oe¡ermlne¿ by Lesso-r^,-.witÌr interest on theunârnortized balance at ten Per äent (1Ot) p-er annum or suchhigher rate u" ,àv- nive ueen paid by Lessor for funds borrowedfor the pr.tpor-''-åf èonstructing suèh improvements, but in noevent to éxcèed the highest ra¡e permisslble by law'

ARTTCI.,E 39. TRÀNSFER OF SEEURITY

If any tecurlty be glven by Lessee.to secure the faithfulperforrnancé of oif -ór ont' oe thd covenants of thls Lease on thepar€ of tessee, Lessotr mãy transfer and,/or deliver the security'ãs such, to the p-,r-iJnJ=.rbf tn" reverslon, in lhe evenL that thereversiðn be sol.'Cl , and thereupon Lessor sha]] be discharged f ronany further llabllity ln ref,erence thereto'

ÀßrrcLE 40. LÀTE C}LÀRGES

Lessee ackno!¡ledges that late payment by Lessee to Lessor ofrent or any. other páyrnent due hereunder wiII cause Lessor toincur costs not conieñplated by this Lease,.the exðct amount ofsucn costs being extrimely dífflcult, and irnpractical to fix.iucn costs inctude,,it¡to,tt'llmltation, processlng and accountingãrrãig"", and late charges that nay be imposed on Lessor by theter¡nÃ pt any encumbrarice and note 6ecured by any encumbrancecoveri;g the Leased Pre¡nises. Therefore, if any installment ofrent, or any other palzment due hereunder fro¡n Lessee is notreceíved Uy Lessðr*r¿Èi¡.hr-+, Lessee shall pay to. Lessor an addi-tlonal sum-of ten percent, (lot) of such rent or other charge as a

late charge. The -parties ägree that this late charge represents

a fair and reasá"1f,fe àrti*ui" of the cost thôt Lessor wiII incurby reason of lðte paynent by l,essee.

ÀNTICI.E 4],. CORPORATE ÀUTHORITY

If Lessee 1s a corporatlonr each individual executing thisLease on behal,f of said èorporation, represents.and warrants thatñã-fr duly authorized to exócute and deiíver thls L€ase on behalfofsaldcorporutioninaccordancewithadu}-yadopEedresoluÈion<¡f the Board of Directors of said corPoration or in accordance

"ittt tt" ByIaw-s -"i ioia corporation, and thôt this Lease is

blndinq updn ,ãia corporatloin ln accordance with its terrns 'Furcher, 1,"s""Jl-naf i, -tft¡tin thirty. (30) days ðf ter executlon ofth16 Leðse, deflver to Lessor a cerLliied coþy of a resolution ofthe Board of Directors of said corporation authorizing orrattfying the execugion of thls Lease'

Lessee) the Provv/ith respect toCode Sections 194 Idut. i es

civiÌ Code Sectionsas ed Pre m i ses

1e3r(4), civil

to Lessor's rePairof Civil Procedure

isions ofthe des truct ion

th respectrlght to rePalr, Code

t

Lessor I sFr<-_

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the Leased Preroiees bY conde¡nnatlon as hereln defiright of redernPtlon or retnstatetnent of Leor future ca6e Iaw or etatuÈorycivil Procedurê sectionÊ 47327 5 in the event

any pres(including Code

7g and Civil code sectls dispo ssessed from the Lea

anyentof

lonsedtestes

)i This walver aPPI les to future statu

dit lon to or ln eubstttublon f,or the statu

?ec--EéÉsée'sInitfa¡s

Prem ses forenact

ÀRTTCLE '13 ' I{ÀSTE

Lêssee shall not co¡nnit, or suf fer to be con¡nitted, ôñY

vaste upon the f,"ut"a Pre¡nfseir.or any nuisance' or other act oriñi;; "ñicr, ''1"v

ãi-"Ñ;t ¿¡. qúter enioymenr of any other tenan¿oi- óccupant, oi if,ã-ìã¡opfex ln whici¡ -the !,eased Premises arelocated.

ÀRTrCf,E ¡t¡¡ . -HfSqFLLÀNEOUS PROVTSIONS

whenever the elngular nu¡nber ls Used ln this Leôse and whenr"qufiãã by the tonte-xt, the sa¡ne shall lnclude t!"-p-lÌ:"-l:*llÎniür"f snaÍl inctude the slngular, and the masculine gender shal¡i;;i;å"-î;; iå,i'i"rn" and neur€r genders, a¡d rhe word rrpeÍsofì',

ehall include coipÀration, f,trm oi associatlon. This instrutnentcontalns alt of tne agreements, condltions and repr.esentall?n:¡nade berween the

-iãrtläi io this Lease and ¡nay not be modifiedäiiifi or in any other m.anner than by an agreenent in wrlt'ing;i;;;ä by aII ot'tne parties to thts Lãase. Except as otherwiseexóressli stated, eaèh payment required to be made by LesEee;;;ii b¿ Ín aaåirion ùo- and noC tn substltution for otherpayments to be nade by Lessee. The invalidlty of any provislonã;'ihi; lããSã, as defer¡nlned by a court of conpetent Jurisdic-iior, shall in no way affect thé validtty of any other provisionhereóf. The preparafion and submisslon of a draft of this Leaseuv eltber party to the other shall not constitute an offer norsñall eithér pärty be bound to any Èerms of thi¡ Lease or the;;¿¡;"Ct of tn. 'Lease itself until both parties have full'yeiecuteã a flnal docu¡nent and an original signature docu¡nent hasùã.t r.c.lved by ¡otf¡ parttes. untii such tlme as descrÍbed lnõr,ã--piã"fo.rr

-""ritence, èither pârty is free -to terminate negotia-tions wlth no obligatton to the oËher. under the terms of thisLease nurnerous chaiges are and rnay be due from Lessee to Lessorfnðf"Afng, v¿lthout iimltatton, Cornmon Àrea cttarges, real estatei;i¿;, - ínrrton"e rel.rnbur6enent and other ite¡n-s of a sÍnilar

"ãi"tå including advânces.nade by Lessor in respect of Lesseers

default at Lessdr's optfon. In eüenE that at any time during theterm there 1s a bona fide dispute between the parties as to theamoun! due for any of auch chàrges clai¡ned by !,essor to be due,the amount deurandäd by Lessor shalt be paid by L€ssee untÍI theresolurion of the disiute betv.reen the pãrtíes or by Iltigation.iailure by Lessee to pãy the disputed sums until resol.ution shaIIconst,itutä a defauft ünäer the tär¡ns ot the Lease. No di¡ninutionof tight, air, or vlew by any structure which rnay hereafter beerectód iwhether or not, by Lessor). sh.aI.I enti.tle Lessee t'o anyreduction of Rent, result'in any llabltity of Lessor to Lessee,ãr Jn any olher i.ray affect thls Lease or Lesseers oþIigationshereunder-. tessee èr¡att est,ablish and ¡nalntain during the Termhereof a program to encourage rnaxitnum use of public transporta-tl.on by perslonnel of Lesseè enployed . on _the Leased Premises,includfng- wlt,hout limitatlon the distribution to such employeesof writÈén materiaLs explaíning the convenience and avai).ablIityof publlc transportatloñ f,acilities adJacent or proxinate to theconþlex, st,aggeling working hours of ernp).oyees, ðnd encouraglnguse of-sucn iãcllfiies, all at Lesseers sole reasonable cost andexpense. Lessee shall comply With aìI requirernents of any localtrãnsport,ation månagenent -oidlnance. Le!see agrees to conply

/,uIéssor I sInItlals

4

FSOSFS-97

2A


vlth all reasonable rules and regulations adopted and promulgat3d;t i";;;t and appllcable to all--tenants in the complex fo-r theiäwtuf. orderlyr-èlean, safe, aesthetlc, guiet, and beneficial use'õñéiãi]."", naiïtenance, nanágement, and ãnJolnnent.o.f the Complex.Si¡ould lJessêe conslat of more-tnan óne Person or entityr they shallbe Jolntly and severally liable on this Lease-

IN WIINESS lfSEnEoP, Lessor and Lessee have executed thisLease as of thE day and year first written above.

LAasorS f,esgegl

By

KAISER GÀTET{AY ASSOCIATESa Ì{ashLngrton General

PartnerehipBy: Bedford Gateway, Inc.

a california CorporatLonManaginq ceneral Partner

sVice President

ITT EducatLonal Sen¡.. Inc..

BY: [ts ?v¿ s l'¿¡

ø7-cLega€gI aI¡ltl.alg

25

.4frl/

Leggorr 9IDLtlaIs

úf'4ñrr ,ri-¡j i '1¡f'r'f i .ii::.

NOTÀNT

,:?*:


NOTÀNY

CaEeway Corporate Park

ST¡ITE OF WT\SIIINGTON}

COUNTY OF KING )

on thts 4ú/' aunderslgned r-ã-ÑõEar

$I ITNESSyear 1n t,hI

uses an<1 purposes t.hereln mentloned and onh,as authorlzed to execuLe sald lnetrumenb.

ay of , 19 before me, they Publ nâ eS of Wasl¡ingt,on,

duly commissloned and sworn, personally appearcrl ,loseph S. Lay¡nalì ,lesident of DEDFOIID G^TEWÀY, INC.r ato ne known to be tlìe Vfce P

californla corpo raÈ ion, the corPo ratlon thaL execubed tlte wtthlnand foregolng in Strument, and âcklìowledg ed said lnsbrunent to be

the free and voluntary act and deed of sald partnersh i p, for theElrat, lte,/sheoath sbated

rÇ¿t0/,

ta te

my hand and offl c 6eâ reto afs cerÈIflcabe above

StateMy

CORPORITTE

58o

of was ton.lntme xpl res

xed the day and

,19_r before me

r clrlnt

STÀTE OF

COUNTY OT'

.on .thlspersonally aþþõãFõãto me known to be bh

)t)

day of

e andto ne known to be t,he

ofÈhe corporatlon that executed the wibhin ånd forego¡ng instIuftênt r

and acknowledged the same instrumenb Lo be bhe free and voluntaryacb and deed of sald corporatlon, for the uses and purposegthereln mentloned, and on oath stated tlìat. Lhey rrere authorized boexecuLe sald lnstrument.

IN wITNEaa WHBREOP, f havc hGreto rêE my hând and âftlxed nyofftcial seal, Èhe day and year flrsb above wrltten.

NOTARY PUBLIC lNsÈahe of

and for t,he

Resldlng at

INDIVIDUIIL

ETATE OAsa.

COUNTY OF

Thls ls to certlfy that on tI9_r before me the underslgneds tãle of

hls day of, a -ñõEîry Publiõ-Tñ-ã, duly commlssÍoned and

,-¡iã-T-ol-Tlíequalified,

pe r eona I yap are

to me known tó b'e [itê fñdIvlaluãI-dãscilbèd 1n and who ãiêËüE-eãÈhe within and foregolng lnstrumEñ-e, and acknowledged Eo n¡e Èlìat

asfor the uses and purpoaes Llìereln

slgned and sealed the sameTlãõ-ã¡r<J voluntary act and deed,men È loned

IN l.tI'l'NESS 9{llDn8OF, I have lreretoofftclal seaI, the day and year flrst

set my harìd and af f lxed byabove wrlt,ten.

NOTÀRY PUBLIC IN ANd IOT tNEState ofResldlng at

&


1

ADDENDITf.Í TO LEÀSE' datedGÀTEWAY ASSoCIATES (rrI,essorrr)( rrLesseerr ) .

l,eSSee'SInitials

November ].4, 1989, between KÀISERand fTT EDUCÀTIONAL SERVICES' INC.

fzq<LeSgOf'SInitLals

RESERVED PARKTNG.

Lessor shal1 provJ.de Lessee wlth 2oO reserved p-arkingspaces. r.8O o-f the reserved spaces shall be withín theeiistlng complex as outLined and rnarked on Exhibít |tBrr. TheremaJ-niñg 20 spaces shaLl be provided off-síte but shall notbe greatãr in- distance than- 1oo yards from Lessee'e nrainentr-y to the bullding. Lessee's reserved parklng w111 be¡rarkéd. Lessee's èrnployees, agents, invÍtees or thirdpersons are hereby piohibÍted from parking ln unmarkedèpaces. Lessor strátl trave the rÍgnt to cause to be removedairy vehicle of Lessee, its agents,, etûployees., inviteee orthird persons, that nay be parked in unauthorized areas, atthe owner's expenÊ¡e, and Lessee agrees to save and holdharmless Lessor, its agents and employees frorn any and allclaims, lossesr'damageJ, and denands aseerted or arisLng 1nrespecù to or'in connection wLth the rernoval of any suchvehicle except for cJ-aimF, losses' damages, lnd demandscaused by the negligence of Lessor and those. acting up.on tltedirectloñ or autt¡ority of Lessor. Overnlght parking isprohibited.

BTGHT OF FIRST REFUSÀL.

Provided lJêssee is not in default of any of the te¡ms andconditions of thl-s Lease. throughout the ter¡r of this LeêseLessee shalL have the Right of First RêfusaL on all spacev¡hlch is contiguous to the Leased Pre¡nlses at the same ternsand conditions-herein wlth the exceptLon that any additional-parking requlred w111 be in co¡nmon with other Tenants ln thebuildiñg aña at the sa¡ne ratfo as that of,fered to otherTenants- to wlt, 4,4 spaces per IrOOO square feet andLessor's contributLon to the cost of Lessee's irnprovenentsshalt not exceed $L7.50 per rentable square fooÈ. Lessoreha1l provlde Lessee with rr¡rltten notice that r,essor deslresto Lease said contiguous space and Lessee shall have five(5) working days after receipt of notice from Lessor tonotiry Lessbr ln writing of Lessee's exercise of its RÍgltof rùst Refusal on said space. If Lessee faiLs to notifyLe€sor J.n writing within the five (5) day perlod then LessorshaIl be free to pursue a lease of sald space.

OPTION TO RENEW.

Provided Lessee ls not in default of any of the terms andconditions of this Lease' Lessee shalL have the option torene\d this Lease for an additional five (5) year períod uponEiving Lessor notJ.ce, in writing, 18o. days prig! to theexpiråtion date of thls Lease. The ¡rini¡num nonthly rentpuisuant to Section L.5 shall be increased to $14.75 perèguare foot per month. The fÍrst two uronths of f,essee'soption perÍod shalL be $o.oo per month. upon exercisLng ofthe opfion Lessor shaLt provide to Lessee an inprovernentallowánce of $loorOo0 for the renovation of the LeasedPremises.

þ_

2

3

:'X


4 UTIT,ITTES 8.

Lessee shall pay its share of utilities costs as defLnedherein. r,ess""7t initial- share of all utilitiesï;uiiiitf"s 8,') fùrntsnea to the complex ^calculated on thebasis of the qt""tãi-oi actual operating costs or as if theeomblex were at -räsC ntnety isot¡ pércent occupied and;;"i;;Î"";ï-r"t-tn" whore of -suèh r,êaèe Year as additional;ã;;-'ñ"-å"åJJauîàã ;ith -Ãrticre 7. r'essee's inttialutïiitiã" g is stãtea in sectlon 1'84' Legsee's I may be

^õãiiiãa from tlme to tirne as IJessee's total slfuare footage

pursuant to section l'.3(c). Lessee's Utilfties I shalLãhãn;ã according to the fotJ.owLng equatlon:

Lessee's Total Sguare Footage = X

L6x- ti¡nes Loo = Utillties I

16X+ (7L2332 -l'2X)

5 LEASE BUVOUT.

Lessor hereby agrees that if the total to construct Lessee'sl.pt.".tiã"is'i"i beLow $17.50 per rentable .square feet thedi'ff"r"nc" betv¡een the actual cost of the J.rnprovenents and

çiilsó per rentabie square feet shall be ¡nade available toiessee to be used to ðfrset any rental obllgations due forLesseers current iactfity locatéd in Federal Way,- tilashingtonã"ã-ifr"i" rfif ¡" no aaJ-ustrnent to f,eEsee's rnonthly rental .

ðtrãufa Èhe totaL cost oí Lessee,s lmprovenents exceed S17.50lãi--ientaure =q"ãtâ feet then Lessor agrges,to nakeavailable to r.esåee an amount not to exceed S75r00o to beused to offset said rental obligations' Should Lessee usethe additional alloetance Lessee's monthly rent under thisLease shall be lncreased by two ($o'02) cents for everyadditlonal dollar used.

SIGNAGE-.

Lessor shall allot¡ Lessee, at Lessee's soLe costr. to lnstalLã-pi"i""t standardìigtt úo be located at the main entry toihå-¡úirai_rrg, "n-

i.riuñi"ated sign on the south face of the¡üirai"s (;í;" to-¡à consistenf with the sign at Lessee's;;;rirai iï Éortrãnã, oregon), and allorr¡ Lessee'g name to be

;i;¿¿ã ãn the p""p"é.a sígnåàe -at the northern entrance toth" cateroav coipJiàte centlr. All signage must be approvedby r,"r=ot in writlng prior to Lnstallatíon'

DELAY TN COMMENCEMENT.

LessorshalldelivertheLeasedPremlseEtoLesseeassetfãitñ-i= Sãction 1.4(A). rf Lessor is unable to deliver theiãã=ã¿-p..mLses to r,äisee within 120 days- of said date theni""see shall have the option to cancel" this Lease'

NON.DISTURBANCE.

6

.|

I

IJessor shall within th (30)irtydeli

the execution ofthis Lease cause to be vered a Subordination,Non-Disturbance and ÀtÈornrnent Àgreemen t executed bY anymortgagee holdlng a Ll.en on the Property of whlch theComplex is a Part. evidencing such mortgagee's agreement

aIt ltst so lonq as

".Ê<_Lessor'sInitials

days ofto Lessee

Lessee'srnitials

Lessee contj.nues to Perform


9

obligations under thÍs LeaEe, Íts tenancy shall -re¡naLn infull force and effãcï notwitnsttnding Le'ssor's default inãã""""t-lo" wlth a nortgage or any resultlng foreclosure orsare or transfer in ifãu of such þroceedings' .Lessee shallfrãve tt¡e right to

- tãr¡ninãte ttris- Lease wlthout penalty in

the event Lessor' há; ñt furnlsheal Lessee such Agreer¡ent

"ltnfn thirty (30) days after executLon of this Lease'

OUIET ENJOY!'TENT.

Lessor covenants and warrants that:

a)Ithas]'ah¡fulfeetitleforthePre¡nlsesandtherioht to make this Leaset;t'--it;iii. su¡Je"t to the provLsione of this LeaÊe'nätntain Lesseã ii rurr and exclusJ-ve possession of thepremieesi andèl rf Lessee shalI. perforrn all the agreements'cävenants, and condltloñs regulred .by- this Lease'Lessee may iiJery, peaceably, ãnd quietly occupy and;;j;y the- piãrnisåé wittrout interference or hJ'ndrance'Iawful or unlawful, of any PerÊton.

SÀTELLIÎE DISH.

Lessee shall have the rlght to lnstall, adequately screenedãná """ur"d, and maintain- at its expense a satepite dLsh oniüã -prrrirå" at a locatlon mutually agree-able to thepäiti'"ã, ãubject to the apqrgv?l: of r,essor, which approvalènarr not be unreasonably rtitheld.

REÀL ESÎÄTE BROKERS.

Each party represents that tt has not had any dealfngswr¡ãisoevef wftn any real estate broker, finder, or otherpãiå"" with respecË to this r,ease, except ¡o.r .clshman andñaiefieJ.d, Inc. -representlng the Lessee and Patricia Loveallof Kiddei Mathews- & Segnei, Inc. representing the Lessor.ie."o" sha1l be responsible'for pây¡nent of commisslons dueto Lessee's and iessor's brokers. Each party shallittA"rnify, defend and hold harmless the other pâTty fro¡n allãä;ü;;-';""ottlng froln any cral¡ns - that lay be ,.asserted;gäiñ"¿ ttt" othir partv bv 1nv other broker, finder, orofher person witñ w-ho¡n- thã indernnifying party haspurportedlY dealt.

HÀZÀRDOUS WÀSTE.

Lessor represents and warrants to Lêssee that to its currentactual knowledge:

(f)ThePrelûlsesis,onthedatehereof,andn¡.111beontheconmence¡nent aáte of the term hereof, in compliancewith, and not in violation of, appllcable federal'state and lã-al taws, rutes or i:egurations pertafningto hazardous, toxic or lnfectLous ¡naterLals orsubstances i

(ii) The building Located on the Premlses does not contain'--' ;;t -ã;i;Ëi" asbestos, or asbestos conÈaLnJ'ng

iiÏ"p.ããi:."g -"r insulatibn nateriats or venrlÌatlonsystems containing asbestoe.

(iit) ÀlL storage tanks, lf any, presently located in, on, or' under the-pre¡nisei have been installed and used and are

registered in acqordance with all appJ'.lcable loca1 ,ståte or federal Iaws, rules and regulatLons and therecurrently exists not conta¡oinated soi¡. on the Premises.

L0.

t1

t2

tu_ @<_Legsor'sInitLalsIrêSSee' S

Inltials


L3

Lessee shatl only have the right to terminate thls Lease if;;t-;f ï,essor's -tå-Jtt"."t.tiois and ltarrantles of r'e'sor'sãüít"ñt actual rn-drfèage above set forth prove false orincorrect.VENDTNG MÀCHTNES

Lessee shall have the rlght to maintain and operate a

"ã"ãl"S tn-áànfn" ar""-wltnf¡f tne Leased PrernLses at Le6see's

sole cost.

7scLessee t grnitials

LeËSOf'SInitials

't1 tl..:s


EXTIIBIIT TÀ'

parcel B of, Tutcwlla ShorÈ Plat 89-l-SS, Recorded under Àudltor'sslle 189041208??.

,ä

/ø


Þ$UBIT B

GATEWAY CORPOITATE CENTER

Office Building A- Site PIan

ouwsmlsh Slvor

Rentable Area;2 Stories59,361 sq, ft.

Parking:5.6 spaces per 1,000 sq. ft.

Drlvc

'>Norts(,.,-.

Ofllcå Bulldlng A

tTT Køsexyea P*tUuab

ft,,t1

1i..7


ÐGIIBIT B1

GATEWAY CORPORATE CENTER

Office Building A- First Floor

lfT Fnsr F¿toalet*o fr.¿ntsÞs

I t-J

fii

220'

,!4


DÛ¡IBIT B-2

GATEWAY CORPOT{ATE CENTER

Office Building A- Second Floor

-ìI

I

I

I

I

J\¡ø¡.!

tTT ásapafløWea P,4,9¿u,çr*

If l-¡

- -TH J_

'-- .;]::l;-,_ri.:rr; 'i:r .-' ".'

/ø

220'

'irí;i


EIifrIBTf EC!

GlsmgcÍçtcÈ¡ oBI,IGAEIONSIIT EDUeåtrtalBIJ SB\IICES' INC.

Iêssotr, a.s part of this Lease åæesrE¡lt, aglæes . to cor¡stñ¡cÈ tenarÈ

inprwåmrrts -i¡

accordarce w:lth tÌ¡e fqlfocirq desæiption arxl the floor planaitac¡ea hereto as ÞÙ¡Jbits nc-lrr a¡ld rrc-2rr- Any itø or quantiitlz of l,,ork

"r,"""¿ttg tll. i¡e¡sve¡rents outli¡'¡ed belc¡¡ ard on Exhíbits nc-lrr a¡ld rrc-2il

"ù-1i b": pe¡fc,r¡rËd by Lessor at Ï-essee's sole_ elçense, ard stËll ilæl'ude,

rlt¡tãut finitatlon, arclritestural fêes, peùírlits; construction ¡nat€rials,1âbor, cor¡t¡:actorré or¡e¡rfiead ard poflt arxl -I,[ast¡i¡gtor¡ St?tê Sales Tax.Worktirg (constnrcbion) drae¡irys for special i¡rstallations sl¡all befurnfsñea tò f-essor by 'I-essee, ñho stnll -be responsible for tlre design,ñ¡rrÊ1or¡ arxl ¡naintenance of tt¡e speclal inçr:oveuents' wtretl¡er or noti¡¡stalled by LeÊsor at Lessee's æqt¡est.

ftre tenant inprovertre,r¡ts to be ir¡Etalled by LessoÌ witlrin the tlrenises prlorto the cque¡æercnt of tÌ¡e Leåse Íþlfi¡ sfraff consisL of the follcuÍrg:

ITGIiÎT}¡G.

1. À11 classnoc¡rs are to be f,nc¡¡ided witf¡ a ni¡iÍ¡¡¡l of L00 foot ca¡dlelightj¡g at normal desk helsú. Fluorescerrt fi:<b¡res are to b 2' x 4tlay-in þpe.

2, À11 office, oolridor, arrl qther areas ate to be pnovided u¡Íth 75 to l-50foot cardle li$tirg at rp¡maI desk heis¡t. Flr¡orescer¡t fbrh:¡es to be2t x 4' lay-í¡ tfpe.

3. All classræs ¡til1 have zone lightirg to peñntt liEr¡|j-rg tt¡e fror¡t arxlrea¡ of each class¡ocro i¡depe¡ger¡Uy.

4. Þ<terior ri*¡tlrg sr¡alI sufficiently right all war¡g"a}¡s leadirrg frontlle parklrg lot to tlre hrildtrg

5 Itìe confeæ¡æ ¡pc¡û arrlfLuorescent ligtrtíry as wellirrteperdently of eactr other.

ræceptÍon a¡ea alæas dl¡urer-cor¡t¡pIIed

to be p¡rvided witl¡s¡ntlights, operatirry

¡I\IAC SYSIEM.

L. Ihe HVAC qfstem wiLl be design€d to ¡naintaln tlre folJ.crui.ng ninine¡tlcorditions:

A. 70 dego:ees r dn¿Èulb tsreeraU¡æ in wi¡ter r¡itlr ælative hmidityrange witJrin 25 to 508.

B. Ze aegiJees !' drl¿ìa¡lb ÈãÞeratertîe in sr¡rmer vrlth ælative htnliclityr^arge witlrin 50 to 55t.

c. q)erôticnal fiic[n 7:oo a.¡n. to Ll.¡oo p.n. l,londay t¡ro¡¡*¡ fYiday.

D. sepal¡ate o*¡aust syst€ùn In aL1 I¡b a¡eas.

E. À11 ther¡¡ostats to be equiFped with Loclcing oovers.

r. s}¡st€u is ca¡nble of coolirg durirg wi¡ter.

rcORS Àl{D ÌaRIIüRE.

1. AlL doors sÌÞll be of v¡ood solÍd'core cq¡stnrgElon.

2. À11 glass ætttes Iocated on a ærridor will be wile safeÈy gl'ass.

3. À ¡rnrlti-Ievel loclc EysEsû (rrcÈ to e:<ceed slx (6) levels) sfnl'l beprsvided.

4. l,lagrretic r¡eLeases aotivated by the firre alarm s¡ætem sl¡all beprovided on door No.s 2, 25, 27. 34, 59.

5. Panic t¡arùriarìe is to be i¡sÈall-ed o¡r all o<tenior d9ors.

f/¿uown'øtlEtt*r

.¡


6. All door^s ale to þe eqr¡ipped with heaq¡ ôSy trirges s\Éficient tohardte scÌ¡oo1 load.s.

7. À11 door stops are to be floor-¡¡s¡r¡ted.

8. Ifa¡ù¡are specifications are as follcnæ:

Bal:s - codci¡ n¡tx¡mbar serLes or eguiwal-entroclcsets/deaitÞolts - sargeant ¡rpr{,iced latcl¡ ard lociksetsÃ1I door close¡:s to be heavf¡-ð¡ty tlpe.

9. À11 ¡retal door.s to be pai¡ted - all v¡coden doors to be stal¡red.

EIIJ¡4BING AI.¡D RESTROOÈ4S.

L. RestJrcc[rìs strall ¡¡eet or e><ceed sbardad hârÅicap codes'

2. fr¡stitr.¡tion qt'ality pll¡rücirq fi¡rb¡res are to be used to l¡anåIeê.Etre¡rp us" Cii,rirq-¡Ëak perioOs. Inù¡strial- $¡ality direct flt¡sÏ¡vâlves a¡€ to be us€d tl¡rot$þt¡t.

3. Rest¡rccc¡t ldalls a:¡e to be 4tr x 4tr Or 3tt X 3rr high gross ce¡:a¡dctile, on all e>q¡osed çal]s to celtirq t¡ei$lt.

4. Restræc¡n floor tfle is to þe slip-neoistant (ncnglazed) ce¡a¡nictile.

5. Ha¡ld tÃ¡el disper¡sers, soap ilispensers, ô¡d^trash receptaclesshall be prcrriAà a'¿ àhâLl be r^eægsea or senri-recessed into ttÉwalLs. ¡{cr¡ær¡rs L¡estrconts s}¡â11 also bê equipped wlth recessed orseuni-recessed na$j¡ ¿iæer¡sers.

6. One janitorÍal. mp si¡rk is to be locat€d on tlrE first floor in tl¡ejanitor cloaet.

7. Orp water fo¡ntal¡ (or none lf codes reqr¡l¡e) ê¡e to be pùq/ldedon each floor of h¡lIdirg. Eacä m¡st leet harrlicap codes'

g. Íhe vêndirg area is to be ps1ovided witfr or¡e watær so¡rce forverdJrg ¡¡taclri¡P use.

g. Coffeeba¡ ¡¡ith sj¡rk to be prvrrided ln rccÛn 202.

INTÍRTOR EINÍSIIES.

1. Mi¡i-blirds alæ to be i¡¡stalred Ín all e>rterior wi¡rlcr,r¡s.

2. ffre carpet lnstalled 1n tl¡e confer,er¡ce llþom, ce¡¡ter Di¡¡estor'soffice, -Marngerial offices is oesigrweave qpress 35 oz. o.rt pile.

3. ftre carpet i¡staLled i¡¡ tlre sü¡iter¡t aLeas - conridor, rheor?roc(rìs, Ëafeg ard ¡AA offices is f,reslgnweave TapestÍ:f /*'itarybacJ< 30 oz' level Iæ¡r tr6lugOou.

4. Ihe floor correrirg to be i¡rstalLeal i¡ tl¡e labo¡ntoriqs, BreakRocfir, Storîage n"ofu

"ttaf:. be enrsÈrorg Vinyl Ocriposition Tiles

n<ceíon Ti1ã lûPêrial Te¡<U¡re !2t' x Lz't x Vïn. oolor: #5190Llarpe.

5. All n¡bher base shall be 4!r Fle¡<co- Color¡ #26 Fa\.¡n'

IEI,L IREAIUET.II.

L. sùtderÉ-use ootsidons stralL have zolatore uall coati.rq. color:#43-L7165 ard #43-L8868 or¡ accer¡t walls.

2. Accenb waus iJ¡ r€c&ls LOTf I'08' 110, 111' 1L2, 126, ard 127 sftaube #3O2LO4 ÏreJs¡al-I ttrþFedir-icr¡'ttt #232 o¡rtrÍd 54Ù wide'

3. Ba1arc of wal,ls to be painted ltÍtl¡ ütto (2) coats Devoe VelourIl.ltÆior s:sni<loss. ÀIi class¡lcm arxl offices to have or¡e wafL

::ti-:


in accer¡t, color.

coffidor wal.ls sttau be constr1rcted of eitlÉr 16 gauge ¡retaL or2n x 4)t wcod str¡cs placed 12rr on cer¡ter with 5/8il dr¡n}I on eacrtl

side.

SECUREIV SYSIE{S.

To be prcvÍded bY Senânt.

ET.ECTRÍ EåL SYSITEI,ÍS.

l_. ñ¡y cl¡îca¡it brcal<er bo)<es ]ocated in offíoe o¡r classrocm aæasstÊ11 be flush ÍEr.]nted tyPe.

2. Eacl¡ lab st¡onld cor¡taln ôpler<, Llo volt or¡tIêts every five feetat or belc*¡ desk hêi$lt alorS thlc lrnfls as designated on plans'

3. Eacà lab arld tlreory nocm Etrall be on it's cftJn sepaÏate cirs¡it.

4. Office, confererce, lobby arrl oorzidor areas strall- have a ninfunrtof ore å.ç1e¡< q¡È1et per 85 squôle feet.

5. Í\¡o dedicated 20 a¡rp ci¡s¡its shall be providêd for ¡ùrotocopiers(locations strcnn on PIan).

6. G¡purd fault protection to be prcvided on aLl I¡b roc$ cjxarits.

7. In tlre ever¡t locar code r€qu1æJIEr¡t-s e¡<oeed the abcrve

specifications, then tt¡e local codes slralL sLpe¡rcede tlre abcn¡e

speciflcations

HANDTCAP FACn"ÏIIES/FROVTSTONS.

Àdêqtrate pirrnrisions a:¡e to be nade for hardlca¡r 1n er¡t¡"ance areas sr¡dlas å¡rfc-ci¡ts, parkirg (l-2 feet 6 i¡¡ch widt¡¡) r_ rn barriers t¡ ertüar¡oe.E€s.t¡aoc¡ns a¡e to 6e' const¡r¡crca to senrice r+t¡eelclntr-restriceedpersor¡s. Any ard all Li$ü suritc¡es, elemtor_ con'trcIs, clrinkl¡qio*taft", urtä "ff e¡r=rgerqf- sl¡s{e¡rs (fire-pu¡s, elexrator ¡Ùrone, etc.)are to be'placed so as to Ue access$fe to hardica¡4æd.

MISCEiI.åNmUS.

l-. À h¡ílt-ln ùisplay @"""' 6' wide x 1.3' dee¡r x 3' hi"gh. witlr .rearaooess' glass-stËlvesr anl 1ÍSttiry is to be pÈ'ctitÍded in adesignated aeæa.

2. AÌI ftre e)<Lirgulsher recepcacles shall bê flusÌ¡ ¡or¡¡rted or secrìi-

recesçed. f-ocations a¡æ rpted or¡ tlre æaoe plan.

3. Soufrrcofi¡g leasur€s st¡atl be tãl<er¡ to redr¡ce or elfuní.nate thet¡:ar¡á¡issior¡-of rpise to adjoi¡irg lrcoms or hauwat¡s ln Locatior¡srpted or¡ tìe Ence Plan.

4. , White dry-marlen boa¡ris cr cl¡al]çboards a¡¡e to be provided on t¡¡ewalls of-classroc¡ns, labs, ard ænference rcc¡r¡s in locations notedor¡ tlre s¡nce pJ.an. onê 4, x 8, ¡nnel per cJ.assr,ocm a¡d cor¡fe¡ærpe

. room.

E. Relites - each ttreo¡T ræn, J.aborator¡r, str.rilent lourge arà affofflces st¡all have r€Litês âs shc¡últ on the s¡nce p1an.

IOBEY ÀREA.

L. ceífi¡g fþ b 2' x 4' À¡mstJp¡q @ufar rrseoord Look fltt til-e'

2. LigÙ¡tfury to be a ccrolci¡ation of fluorescent fù<Eures ardspou.i$rts - i-rrltdlrgt ? $a11 l.lashers-

3. Floorrcover5rg to be a cc¡nl¡i¡ation of car¡nt a¡d ria¡dre cera¡úc

'GTraniteil floor tiles as slrc¡¡n on the slnoe plan.

4

.''i.W:


.:JJ¡

4 I{ork areq,/storage cabinets to be provided per pl'ans.cr¡stcur ¡uiifv¡orf a¡d formica or equiwale,nt flnisr¡.

WilI be of

'i-¡î


Floor Flnlshes

Carpets

Mee

Base For Carpetand VCT

t¡JaI I Coverlnqs

v i nc! -g.a Llç"e ygr-þS,g

PaÌnt on l¡JaIIs and/gt_ÐsSe. F.rg0eg

,i:8

S EDULE OF

Deslgnuleave Cgpress35 oz. cutglle

Deslgnureave Tapestrgu/unltarg back3O oz. Ievel loop"6raphics"

Fiandre Ceramlc"6renlte" Floor tllesX.Ê"x Xê" x 3/8"Color: *6te0 "Êarbide"

Armstrong VlnglComposltlon Til.esExcelon TiIe lmperlalText,urts X?"x 1Ê" x 1/8"Color: S519O1 Taupe

Flexco rubber baseColor ¡ #?6 Faurn

*30e107Tekuall "Expeditlon"*Ê37 Orchld 5I" uide

Zolatone llalI CoatlngSgstemsCo.Ior: #ï3-17165CoIon: *'t3-1.8868 -

accent ualls

Devoe Velour InteriorSemi-E¡lossÊolor: SlHit9F TauPe -

l¡Ja I lscolor: *1t1500 Êhocola -

Tint - doorsand accênt uralls.

Color¡ *PlîtoE LiquoriceTint - door Fra

ConFerence room,Center Dlrector'soFFlce, llanagerialoFFlces.

Student areas -CoFtridor, TheocgRooms, Sales andFAA oFf,lces.

Entrance Lobbg135 s.F. onlg

L

LaboratorlesBreak Room'Rooms, etc.

orðge'

ff:1,(*;.-fo".,|''r/"c

,st

Carpet,ed AreasVlngl Tlled Areas

Accent Lobbg blalIt arø,l in tt ll9 iv /c/¡,L'l01 toç,¡!o,ltt, ll1, t21,,li-t

Student Corrldorsand Break Room.

Paintecl l¡lalls I nIlFfice Corrldors'Prlvate OFFlces,llanagerlal OFficestSt,oragts Rooms,Leborat,orles r andTheorg Roomg.

::i$


.,:i

Plast.Iq tamlggtes

Cablnetru

llen's & l¡lomen 'sRestrooms

Floor TIIeg

tr,all TlIeg

Formlca *9Ë1 - Fog

Armst.rong et" x rtB""Second Look" in lag-ln grld.CoIor: tùhltts

Dal-Tile 1" squareceramlc mosalc#DK-1384 "6old Dust"

DaÌ-Tlle tl-llï" sguareGlazed Cecêmic t¡Jall Tlle*D-136 "Fsun"

Dal-TiIe l-1ltl" squðre6Iazed Ceramlc tdall Ttla#D-l$$t "Taupe"

Nevamar ARP Surfacefs-a-sgT "Peachgkeen" -Vogue

Formlco #907 SmokedHlckoru

Devoe *eHïsF l¡Jarm Belge

Doors - Btdg. Standardoãk

.:ä

Flle Room, Bookstoreefc.

Celllngs EaneraIIg

llen 's & l¡lomen ' sRestrooms

t¡romens Restroom

llens Restroom

liJomens Restroom

llens Restroom

llens & l¡lomensRestroomS


^!(Ð-i

LEASE EXHIBIT C-1

¡

¡t-*-

,/>//</

FIRSÏ FLOÔR FLAN

GATEWAY

BUI LõI NG

SEATTLE, løCORPORATE CENTEN# 7 TENANT: ITTWASHI NGTON

FÉl ¡¿þyl

17w**ffi--ø'-or i

--1

-lj3llÊffi¡

ilPtl W6dÉ

dtf-

rí¡f-l - bt. 4l H6,ac 4a-$ataÉ *ù 4 4

-r¿C--utzJffi"

-t@T

ó*

rÍ¿:-,Ëf@

lü

Í,Llir4J

¡¡¡X"g¡¿, ffi-

&*

t'tr-

@- ¡rglj-tËe-ug@-

,r¡þ

Wt Yö' .lrel


@

dr-#-=Wo-

ffi.&-

wd_

-w-

,ffi ,l¿¡l-ILþI

#

þet w44r¡e

LEASE EXHIBIT C.2

GATEWAY

BUI LD! NG

SEATTLE,/ld

COBPORATE CENTER

#7 TENANT: ITTWASHI NGTON

r.¡^


\ùt"'

E¡üfIBIr rrDrr

¡LCKNOIÍIJEDG!,ÍENÍ OF COUITENCE!'IENT

This Àcknowledgment is ¡nade as of Anril r6- 1990 r¡ith referenceto that certain Lease Àgreenent (hereinafter referred to as thetrleasert) dated Novenber 1-4. 1989 by and betr¡een KÀISER GÀTEWAYASSOCIATES, as trlJessorrr therein, and ITT EDUCATIONAIJ SERVICES,INc. , as rll,esseetr, for the de¡nised prernises sÍtuated at J-272OGateway Drive, Suite J.00, Seattle, !ÍÀ 98168.

The undersigned hereby confirns the foIl-owing:

1". That the Lessee accepted possession of the De¡nised Prenis-es (as described in said lease) on March L5. 1990, and acknowledgesthat the premises are as represented by the Lessor and in goodorder, conditlon and repairi and that the inprovenents, if any,required to be consÈructed for Lessee by Lessor under thLs leasehave been so constructed and are satisfactorily completed in allrespects.

2. That all conditions of said lease to be performed byLessor prerequisite to the full effectiveneËs of said lease havebeen satisfied and that Lessor had fulfÍlLed all of its duties ofan Lnducement nature.

3. That in accordance with the provisions of Àrticle 3 ofsaid lease the co¡nmencement dat,e of the tern is Sixty (60) nonths,and that, unless sooner Èerminated, tbe original. term thereofexpires on lfilí/9H .

3/31/es4. That said Lease is in full force and effect and that the

same represents the entire agreernent betsreen Lessor and Lesseeconcerning said lease.

5. That there are no existing defensesagaì.nst the enforcenent of sald lease by Lessor,credits against rentals.

which Lessee hasand no offsets or

6. ThaÈ the ¡ninimum rental obligation of said lease is pre-sently in effect and that all rentals, chargea and other obliga-tions on the part of LesÊee under said Lease commenced to accrueon March 15. 1990.

7. Thaf the undersigned Lessee has not ¡nade any prior aseign-ment, hypothecation or pl-edge of sald lease or of the rents there-under.

IJESSEE I

BY3

it¡


EXHIHIIT trErr

trUTES ÀND RæUTJIIIICÈ{S ASTACHED TO

ÀI{D I'ÍADE À PÀ¡tI OF THIS I¡¡SE

1. No sign, placard, picbre, adt/e¡tfse¡rìerÈ, rl¿r¡re or ¡rotice shall be inscriÞed,ai"piuy"a iii¡1t ¿ or'aftfjxe¿ ón t¡re Brildirg or to any ¡xr{ tlreræof, or r^,tlic}¡ I'svis-i¡fä frim tfre or¡tslde of tl¡e E¡¡ildirg, wttnor.rt the written ænsent of lêssorfi¡se tlaA aül cbtained arri I-essor shall -Írave ttre rigfit to re¡ncr¡e ar¡y $¡c¡¡ sigEl,piacarf, picrh¡re, adr¡ertise¡rer¡t¡ râtTp or noÈlce witùc¡¡t nctice to ard at t¡¡èe:peJrse of lgsee.

À1t apprcved signs or fetterÍnJ on doors sfialt be prlnted' afflxed or insælbed atüe êçer¡se of LeÊsee by a ¡terson apprcved by Lessor.

I€ssee shaU rþt place an¡rthirg or aLlcw to be plaoed near the S|?ss otany wírdcfl, door, paÉitior¡ oi watt rùrictr rnay appear unsl$tËy f¡¡qn outside the¡lsises.2. Lessee shall not cbtai¡ for use r&on ttre Pre¡nises l"ce, ¡ni¡er.al v¿ter¡ tca¡el orother si¡ulLar se¡nrlces on tt¡e pr.erlLses, Ð(cept fiun peæons autl¡orized by I-essora¡d at t¡¡e hcr.¡¡ls a¡ìd urder reguJ.aÈions fù.ed by Le.ssor.

3. the direcÈory of tl¡e B¡ildixg will be provided o<clusively for tÌ¡e diqlay oft!¡e nar¡e ard tæation of Iissee only ard Ï-essor resewes the ri$tt to e><clude anyot¡¡er na¡æ tf¡e¡¡efi:c¡n.

4, Ihe sidsuraurs, hal.Is, passages, er(its, entüances, elenrator-s ard stairmays 1na¡d a::or¡rd t¡e Etril"di¡S st¡all noÈ be cbstn¡qt€d by Lessee or used by it for anypur?ose otl¡er tlnn for irrpess to ard egress frc¡n the P¡€nises. lfhe halls,pâffi9esr ëaits, êr¡tJ:ar¡ces, elevator:s, stairrays ard rcof are rpt for tÌ¡e use ofthe gener:aJ. public a¡d lessor sttalf in all cases retai¡ the right to æntr.ol a¡rd¡rreverrt açcess thereto by alt persons wÌrose prresence ln tl¡e judEnent of l-essorslnll be prejud:iciat to tl¡e safet)¡, cf¡eunste.r, r.ep¡tation ard j¡terest of theB¡ildirq ard its Less€e, prorrided tlnt nothirg he¡ei¡ cor¡taÍ¡ed sfial1 be consttrredto pr€vent, suc.t¡ access to per"sons witl¡ wl¡cun l-essêe norrnally dea.Ls j¡ tle onùirnryco\¡r:se of Lesseets Ìxlsiress unless sudr persons a:le engaged in iUegat activities.Neitl¡er Lessee nor any enployees or ir¡vltees of l-essee striall go u¡nn tùe ::oof oftl¡e Erildi¡g.

5. I"essee slraLl not be permítted to ir¡stall any addttional. locl< or locks on anydoor {n the Brifdirq unless written conser¡t of lessor st¡all have first beencbtåi¡¡ed. IWo keys lrill be f'urnisr¡ed bry l€ssor for every rocnr.

6. the toilets a¡d urinals 6hal1 not be used for any prr1lo6e otl¡er tlan tlrose fortrtridr tJley we¡.e cor¡stn¡cled, ard no n¡hblst¡, r¡e*¡spapers or other substarpes of anyki¡d shâLl be tlu¡c¡ø¡ into tl¡em. waste arri e><cessive or r¡nus\¡al. L¡se of r¿ater strallnot be allcr¡ed. Lessee sl¡alI be responsible for any breakage, stoppage or damageæs\¡Itirg f¡¡c¡¡ tlte vlolation of tl¡-is ruJ.e þr Lessee or its euplq¡ees or i¡vitees.

7. I€ssee st¡all rþt overload tIÉ floor of the Þîecnises ornark, drive naLls, s¿líeùtor drilL into the ¡nrtitions, rcodr¡ork or plaster or in any my deface tl¡e kenisesof ar¡r parÈ tleræof.

8. No furnitu¡¡e, freight or equuiprerrt of any kird shall. be brcr¡ght. into tlreB¡ildi¡g r¿ithotrt tlre æ¡rser¡t of lessor ard aII Írvi:rg t¡e sa¡re lnto or or¡t of tl¡ee¡ildirg sttall be dor¡e at, suc}r ti¡rÞ ard in suctr nanr¡er as l,essor stnll designate.Lessor shaü bave the ri$rt to deLer¡nj¡re of lj-nlit the weight, size ard position ofall safes a¡d otìer heaq¡ eqrdpr¡ent brougù¡t j¡to tlre B¡iIdiJg a¡rl also the ti¡rpsard rna¡rer of ruvirg tl¡e sare in ard qrt of tl.e Buifdirq. Sages or otÌ¡er heavyobject.s shaÌI, lf consider.ed necessaq/ by l€ssor, st^ard on lood strips of sudrtjlictsrss as ís rrecessar¡r to plrcperly dístrjl¡r¡te ttreír weigtrt, Iêssor will not bere.sponsible for loss of or då¡nage to a¡ry such sage or properþr fmn any car¡se a¡rdall darnage done in tìe Rrilclirrg Uy rovlrg or rnaÍntaÍnirg any such sage or otlrerproperEy sÌ¡al-l be repaired at tJte oçense of Lessee.

-Vecsor Le'ssee's

Inftfals

r

Inltials


9. lessee sÌ¡all rpt eryloy any person or persons otl¡er tlran the Janitor of lêssorfor tlre E ¡¡po€e of cleariin{ tlte neurises r¡nfess otherwise agreed by f-essor. Ð(cepÈ

witÌ¡ tlre w:iitter¡ cor¡ser¡t of le-ssor, no person or persotìs ot}¡er tlran tl¡ose ap.p¡ã¡edly f-essor shall be per¡nttted to er¡ter ti¡e A¡ifAirÈ¡ for tlre_ptu¡rcse of cÌsânirg t¡¡esår*. lêsseê sf¡aff not cause ar¡V Unrecessa¡V labor by reason of LeSSeets*rJ***"" or i¡rÀiffererpe tn tlre -presewation of good order arxt clea¡ùj¡e-ss.te.ssor sh¡all not be r.esponsible to resäee for any toss ór prlopelty ol tltg- nfldÌf",hcn¡en¡er occrlrirg. or for any darnage dor¡e to tt¡e effects of Lessee hV tlre janitoror any ortlrer enployee or arY other persot.

l-0. Lê.ssee shau not use, l€ep or pemit to be used or l(e€p any forl or r¡oxlcr¡sg¿¡s¡ or substar¡ce ln t]¡e Þsrrises, or permit or zuffer t]re P¡¡e¡nises to be occupiedór used in a ¡ar¡ne¡r offenslve or obJectionable to Lessor or other ocæpants of theB¡¡ifdi¡g by æason of rrcise, odo¡¡s and,/or vlbrations, or fnterfe¡¡e in a¡¡y r.ray witltoûrer Lessees or tl¡ose travlrg busù¡ess tl¡e¡¡ein.

11. Oookl¡g sr¡alL be perÍritled by Lessee ln tl¡e Hsnlses, tx¡t the P¡r¡ises stnlLrpt be used- for tlre storage of nertùardtse for r.rashirg ctotåes for l"odgirg or forany I¡npùñper, cbJecíionable or l¡¡ro¡al ¡r¡fposes.

12. Lessee stlall rþt usie or keep 1n the P¡¡e¡nises or tÌ¡e B¡ll.dfug any l<erosene, orlnfLa¡r¡rrable or ccnÈustil¡le fluid or ¡rtatsial or use any netlrod of heatirg or aircord.itioniry sE¡er than tlat stpplied by Lessor.

13. I-essor wlll direct. electricians as to ttre ¡nanner ard location i¡ $rhict¡telephore a¡d tefegraph wl¡res a.re to be introduced. No bori¡g or cuttfrrg for wiæswiLl be allcrved witl¡or¡t tl¡e corçènt, of lessor. fhe location of telephones, callboxes a¡¡t otlrer off,ioe eryi¡rnent afflxed to tt¡e Prsûlses sÌ¡all be subject to theapprosaf of l€ssor.

L4. Lessee Snll not lay llnoleun, tlle, ca¡pet or otÌ¡er si¡nitar floor coverirg sothat ttre sa¡ne strall be affixed to the floor of the Henise-s in any ¡nânr¡er e><cept asapprnred by l€ssor. ltre elçense of ræpairirg any danage t€sufti-rg fru¡r a violationof tàls n¡Ie or r.enar/al of any floon ccnrerirg sl¡all be borne by Lessee.

1.5. No packages, s4ry11es or rercl¡a¡dise v¡ill be received in tlre tuildirg orca¡ried Iæ or dútn i¡ tåe elerrators, er<cept at¡rfurg such trct¡:rs arrl tn suctr ele\¡atorsa.s st¡all be deslgrated by Lessor.

16. Eti¡ds a¡e û¡rnisl¡ed for each ercter.ior wl¡dc¡,r by Lessor as par{ of tlteOor¡struction All<xmnce, a¡d any addltlona1 wlrdcrr¡ coverirg desi¡ed by Iæssee shal.lbe tr¡t ræ at læsseê,s erqlense ard Íust be of sr¡ct¡ unlf,o¡¡r sÌ¡ape, color of ¡naterlalant rra¡<e a.e roay be prescibed by lessor.

17. Ihe requi:ærents of lessee wlll be atterded to only rpon applícatlon to theB,rildl.rq p¡¡operty nanâger. Êrptolrees st¡all not trErform any v,ork nor do anythi¡qo¡,¡tside of tt¡eir r.egular drrties ¡uùess urder special lnstn¡ctions frun tl¡e l-essoror his agent, arrl ro enployee *tall aùtrit any peùrsor¡ (f.essee or otlrenúise) to anyoffioe viths¡t l¡st¡r¡cLions frsn ttre lêssor.

L8. On Satr¡ria)¡s, sùdays ard leÍêl holidays, ard or¡ ott¡er dalrs betr¡ee¡r tlrc hou¡sof 6!00 p.¡n. ant 8¡00 a.¡n. the follcnrirg day, access to tÌ¡e â¡ildir¡g, or to tÌrehalls, corzidors, eler¡ators or stairways in t}le R¡ÍIdirrg, or to tlre Precnises nay berefiJs€d unless the ¡:a:son seekiry access is ¡s¡cri/r¡ to the person or enployee of theBrildjrg i¡ clra¡rge arxl has a pass or 1s prcperly ldentified. Iêssor shaLl in noever¡t be liable for damges for any e¡ror wlth r€g.dad to ttre aùnlssÍon to oro<clt¡sion f:ro¡r tt¡e B¡ildjJS of ar¡r person. In case of irvasion, rþb, rlot, p:bJ.lcoccitenent, or other ccnunotion, Iessor resqnes ttre right to prerrort access to ûreÐ¡ifali¡g ù¡ri¡rg ttre æntinr¡anoe of the sane by clooJng tlre doors or otherwise, forthe safeþr of Lessee ard prctectlon of p¡operty in ttre B¡ildfu¡g.

X9. T-essor resentes tJre rl$rt to e><clude or e4>el f¿q¡ ttre ÞiIdÍrq any pe¡sotlvrtro, ln t¡¡e juAgnent of Lessor is intoxlcatecl or urder tÌ¡e lnflue¡rce of liguor ordnrgs, or uf¡o s¡raLf in ary/ Íranner do any act, 1n violation of any of t}re n¡Les ardregulations of tåe B¡ildj¡g.

20. No verdjrg ¡¡adri¡¡e or ¡¡ac!¡fu¡esr of any desælpüion¡nal¡¡tai¡¡ed or opernted r4nn the prsrúses witlror¡t tlre writte¡'¡

shall be j¡stalled,corx¡enÈ of tlre l-essor.

2L. Lessee slnll r¡ct disturb, soliclt, or canrrass any ooo.pant of the B¡iLdiry.

E7{-sor' g Lessee I s

InltiaLsInlË1ale

1t


22. I.{itbcut tJre writter¡ conser¡t of Lessor, Lessee st¡all rpt use tt¡e na¡rs of tl¡eB¡ild.irq |n ær¡rection witl¡ or in prurotirg or adve¡tlslng tìe tx¡sirFss of Issseee¡@eet as I-essee's addr€ss.

23. I€ssee shäU. rÞÈ pernit any cor¡t¡actor or other persor¡ tttald¡g any alter:ations,adåitions or i¡rstallátior¡s witÌ¡j¡¡ tàe ksrìrises to use tÌre tallways, Iobby orco¡ridors as sto¡¡age or work areas without tJre prÍor $¡ritt€r¡ consent of Lessor.Lessee gÌ1¿II be liaite for ard shall pay the e¡çense of any additioral cleanirg orotìer naintenarce requi¡"ed to be perforned withln t¡¡e R¡Íldirg by or for l€ssee.

24. SubJect to R.¡Le 18, rþrmal l¡curs in vtrict¡ ttte B¡ildÍng will be q>en forI-essee, its eupfq¡ees ard its tr¡vÍtees for br¡si¡ress tl¡erei¡ ttÍ1.l be fi.crn 8:00 a.n.to 6¡00 p.n.

25. lessee shatl be er¡titled to use parlcir¡g spaces as m.rtrrally agreed upon bet1rreenI.essee aût l-e.ssor s\¡bject, to such æasor¡able corditior¡s ard regulatior¡s as aay þi¡reos€d fisn tjJre to t1ÍÞ by Lessor. tessee açfrees tåat, veÌ¡icles of Iessee or itsenployees or agents sl¡all r¡ot park ln driverways nor occr4ry parkir¡g spaces or otÌ¡era¡reas resewed for any r¡se st¡ct¡ as Vísito¡:s, Delivery, loadirg, or otl¡er tenants.Ir-ssor or 1ts agents st¡a1I l¡ave üre ri$rt to car.¡se or be r^eryrn¡ed any car of lêssee,its enployees or ager¡ts , tlnt nay Þ parked in unautl¡orized areas, ard Lesseeagrîe€.s to save ard hold harrnless l€ssor, its agents any erployees frcrn any ard allclajms, J.osses, darnages, a¡d demards asserted or arisirg fn respect, to or lnconnection witl¡ t"tre remcvaL of any sucb vehicle. Lessee, lts erçLoyees or agentsshall r¡ot park carpers, trr¡ciks or ca¡s on the ÐiLdi¡g parki¡g areas overnight orover weekerds. Lessee wlll frc¡n tirûe to tine, r4nn request, of lessor, sqplyLessor wltt¡ a list of license ptate nr.unbers of vet¡isles q¡ned or operat€d by itsenplq¡ees anX agents.

26. I€ssor reserves the rigtrt to rûâl<e ¡¡pùificatior¡s he¡¡eto a¡rd sudr ot]¡er ar¡ifurther n¡les ard ægulation as in lts sole judger¡t Ílay be req¡ireA for thesafety, cô¡e a¡d cleanül¡ess of the Þ.emlses arrl tlte þrildi-rg a¡rd for tl¡epr.esenration of good orriler the¡¡ei¡. I"essee agl.ees to abide bry al.] suct¡ n¡les ar¡lrcgulatlons.

27. èmrassirq, solicitfung ardLessee shalL cooperate to prevent

Inftfals

peddll¡q is pr.cùribíted ln the h¡ifdtr¡g ard eadrthe sa¡re.

28. Les€or is rþt, æsponsible for the vlolatLor¡ of ar¡y nrle oontalr¡ed herel¡ byany other Lessee.

29. Le.ssor nay s,aive anyone or rÞre of tl¡ese n¡les for tlre berefit, of anypartianlar l-esseêr l¡¡t rp zucl¡ q¡aiver shall be constn¡ed as a waiver of lessor,srlçþt to er¡foroe tÌ¡ese nrles agalnst any or all lessees occlpyirq tlre hritdirg.

p?<or s Leseee.ã

Inltlâ1s


DATED:

BETWEEN:

AND:

FIRST A¡.IEND¡'ÍENT TO IJEÀ88 âGREEUENT

April L6, L990

KAISER GÀIEWAY ÀSSOCIÀTES I,ANDI,oRD

fTT Educatlonal Services, Inc. TENANT

By written Lease dated November L4, L989, Tenant leased fromLandlord approximateJ-y 25r093 sguare feet of office space locatedat 3,2720 cateway DrÍve (hereinaftèr referred to as the rLeasetr).

Ite¡n No. 5 of the Addendu¡¡ to Lease dated Nove¡nber 14, 1989states that should the toÈal coËt of Lesseers improvenents exceed$L7.50 per rentable square feet, Lessor agrees to rnake avaiLabLeto Lessee an amount not to exceêd $75r000. to offset Lesseers priorrentaL obligation. Should Lessee use the addiÈiona1 allowance,Lesseers monthly rent shallbe increased by two (.02) cents forevery dollar used.

Lessor represents that the final tenant inprovenent costsexceeded S17.50 per rentable square fêet and Lessee has sub¡nittedan invoice to Lessor in the a¡rount of $75r0OO.

In accordance with ÀrticLe 5 of the Lease,receive two (2', days of free rent for every onedelÍvery of the premises 1s delayed beyond March Lprernises r¡ere delivered to Lesseê on March L5, 1,990.

NoW rHEREFORE, the Parties agree as follows:

Lessee shall(1) day that, L990. The

1

2

The rnonthly rent, shall increase fromç27,639.0O for sixty (60) ¡nonths.

$26,L39.00 to

Àrticle L.5 of the Lease shall be revised to incorporatean additionaL 2A days free rent, and to refLect theactual delivery date of the prernises and the rentalincrease per ftem L of this Amendment as follotrs:

Rent!3/L5/eO to4/l/9a to

L2/L/eo tot/t/9I to

3/3L/eOLL/3o/eot2/3L/eo3/31,/es

-9-$-$-$

0. 00L,500.00 per month

16,3L2. OO

27,639.00 per month

All other terms and conditions of the Lease shall renain1n full force and effect.

. fN WfTNESS WHEREOF, The Partles have executed thls Àgreementas of the date and year first written above.

I,ANDI,oRD TENÀNT

NÀISER GATE¡.¡A,Y ÀSSOCIATES,À California ceneral Partnership

By BEDFORD GATEWAY, INC.À calffornia Corporation, ManagingGeneral Partner

ITT EDUCÀTIONå,IJ SERVTCES, INC.

Its B¿s.¡'Õe,vÍBy

S. Lay¡nan

3

Vice Presldent

-(À.\\r /',\t'ì\\\ \\)


.*.. ;-.!;.-.' ,

SECOND AMENDMENT. TO I,EASE

This second AMENDMENT TO LEASE ("second Amendment") isenE.ered inlo as of Auqust 1?, L994 by and between KAISER GÀTEVüÀY

ÀSSOCIATES, a California general partnership, as Tressor, and ITT

Educat,ional services, rnc. a Delaware corporaLíon, as Lessee'with reVrence to the following facts '

/A. pursuanL to the terms of that cerLain Triple Net officeLease dated November 14, 1-989 and, amended on April !6, 1-990 (the,,Original Lease" ) , Lessee leased from Lessor certain space

locaeed at 1272A Gateway Drive, Seattle, Washington 981-68' âs

more particul"rry desc-ribed in the original Lease ' Allcapitalized terms referred to herein shal1 have Lhe sar¡e meaning

as' proviaea for in the Original Lease unless provided to t'he

contrary herein.

B. Lessee and Lessor desire to amend the original Lease

Lo, among other things, increase the space leased to Lessee, and

exÈend the original Lease upon the Lerms and conditionshereinaf ter Provid'ed -

NOW, THEREFORE, in consideration of the muLualhereinafter contained and for other good andconsideration, the receipt and sufficiency of whichacknowled.ged, the parties agree as follows:

term of the lease sha11 be

covenanLsvaluable

is trerebY

1.0 Leased Premises. As of the Effective Date (hereinafterdefined in section l-4.0), the Leased Premises sha1l be increasedi=o* approximat.ely ZS , Og3 sguare f eeÈ t_o approximately 3 0 ' 316

sguare feet as shown on Exhibit B attached'

2.0 Minimuq-Ivfontb]-v Rent' The Minimum Monthly Rent shal1be Seventeen th;;s""4-"íght' ttunArea and sixt'y-five dollars and no

cents ($17,865.ó0j tro* Ápril 1, 19g5 unt.il rhe day prior t.o theEffective Date. As of the Effective Ðate, the Minimum MonthlyRent shal1 be Twenty-one ttrousand five hundred and eighty-threeand nol1oorhs dollars ($21,583.00). Beginning on April !, L998'the Minimum Monthly nent shalI increase to Twenty-four thousandone trundred and six-ey-nine and noll-ooths d.ollars ($24,169.00) '

3.0 I,ease Extension. Theto March 3l-. 200L-extended

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4.0 parkincr. The number of reserved parking stalIsidentifiedln section 1 of the Addendum to the Lease shall beíncreased from 200 to 220 upon notice from Lessee that the nruriber

of vehicles operated by employees, students, and visitors,consistent.ly exãeed two hundred. Leåsee agrees to cooperate withLessor witù Lhe collecEion of lit.ter and implementatÍon ofregulations relating to the areas reserved fOr IreSSee's use, SUch

as the reserved p"ikítg area and student smoking patio. Lesseewill Lrave ttre garbage around Lessee's parking area picked up

Monday through nriday. In addition, Lessee will provide a]1emploirees ¿rd students with either bumper stickers or rear viewmirror tags that ident.ify the car as being affiliated witttLessee.

5.0 Lessof's C_onstruction Obligations. Lessor herebyagrees to protide to Lessee certain tenant improvemenÈs (the,,Tenanl ImprovemefiLs") in the Leased Premises, pursuant to and inaccordance witn the terms and conditions of this Section 5 and

Exhibit uAu attached hereto and incorporated Ïrerein by thisreference, Ttre TenanL fmprovements shall be consLructed and paidfor by Lessor. In no evenL shaII Lessor be obligated Lo spend in

"*"""i of ç21-0,000.00 for the TenanL rmprovements (the "BaseLeasehold. Improwernent Allowance" ) .

5.1- Tenant Improvements. Lessor agrees tO Construct orto cause to be constructed, for the benefit of Lessee, and incompliance with all applicable 1aws, ordinances, rules, codes,-rrdr"g.rlations of governmental authoritíes, (i) additional classrooms and faculty lounge on the first' floor of the building inthe area into wti.t Lessee is expanding (the "E>rpansion Space"delineated on Exhibit. B); (ii) upgrade the existing HvAc sysLem

servingf the Leased Premises to maintain temperatures within a

rangie ã1r¡pically found in local area office buil-dings and meetinggo.rãro*ããtrf çiuidelines, based on occupancy load a:rd equipmenË

load as stateå by tenanÈ; (iii) oçand the smoke detection and

fire alarm system ínto the new class rooms and faculty lounge on

the first floor; (iv) throughout the Leased Premises, add manualpu1} stalions and alarm enunciators in locations specified byL""""", (v) other improvements which Lessor and Lessee shallmutually agree upon. The Tenant Improvements shall be

construãLed p1rr=rr"i.t to plans and specif ications approved byTressee and prepared in accordance with, and by a contractorselected by Lessor. Lessor wí1l provide Lessee with copies ofall construction bid.s for the Improvements prior to commencing

construction of any Improvement,s. Lessee must, prior to Lessor'SaccepLance ttrereof, approve in writing each suctr constructionbid. The amount attiibutable to the Improvements wil1 be the

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,r . .,'

actual cosL to construct the Improvements and not exceed the bidamount approved by Lessee, unless the cost over run is Lhe resultof changes orders generated by Lessee. All consLruction will bedone in a good worJsnanlike manner using materials in accordancewith plans and will not vary in any substantial manner withoutLessee's prior written consent. Àny cost of constructing theTenant fmprovements in excess of the Base'Leasehold ImprovenentAllowance s}.all be paid for solely by Lessee.

5.2 Cost Overruns. In the event that the cost of the TenantImprovemenLs exceeds the Base Leasehold Improvement Allowance,leãsee shall pay, as additional renL, the amount in excess of theBase Leasehold Improvement Allowance within thirty days afterLessor not,if ies Lessee of the excess amount. Lessor agfrees Eo

make available to Lessee pertinent documents to substantiat'ecosts incurred by Lessor relaLed to the Terrant Improvements -

6. 0 .Abated Minimum Monthlv Rent. Lessor agrees to abate100* of the Minimum Monthly Rent for the 1.75 months beginning onEffectíve Datre of this First, Amendment. During the abated renEperiod, all charges other than the specified Minimum MonÈh1y Rentãn.ff continue to be paid by Lessee. Ân example of charges thatwould continue to be paid by Lessee would be the monthly proratashare of conrmon area maintenance costS, real eState taxes, andinsurance. In the event that Lessee is ever in default of thisLease pursuant to sectíon 25 of the Lease, Lessor ilâY, atLessor's discretion, call the abated rent immediately due andpayable

,7.O Ontíon to Extend the Terms. Lessee sha1l have theright Lo extena tfre initial term hereof for one additional periodof four (4) years (the "OpLion Term") upon the same terms andconditions as stated herein, except for Mínirnum Monthly Rent.Minimum Monthly Rent for the Option Term shal1 be product arrivedat by increasing the Minimum Monthly Rent by the same percenÈagethat the Consnrnãr Price Index for A1I Urban Consumers: U-S. CityAveragfe (the "Index") from the period from March, 1995 Lo March,2001- (the "Period") increased. For instance if the Index forMarch, 1-995 is t28 and the Index for March, 2001 is !72, thepercentagie increase of Index is a cumulative l{L72-t28) /L28) =¡¿.:g*; Èhus Lhe Minimum MonLhly Rent for the option Term wouldbe, in this example, (ç24,1-69.00 x 1.3438) = ç32'478'34 'Notwithstanding the preceding, the increase of the MinimumMonthly Rent during the Option Period shal-l be not less than ifttre fndex had increased by 4.5t annually over the Period norshall be more trhan if the Index had increased by 6.0* annuallyover the Period. Lessee musl exercise ibs right, if at all, by

bþLessol'sInitials

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),

vüritten noÈification (the "Notice of Exercise") to Lessor notlater than april !, 2000 (the "option cuËoff Date"), providedthats Lessee is noE in default of any of the provisions of thisLease.

7.1 Failure to Exercise option. Bart of the basís forLessor,s providing the Base Leasehold Improvement Allowancespècified ln this First Àmendment is in anticipation of Lesseeeiercising this Option to Extend, thus allowing Lessor a longeramortization perioa. If this Option Lo Extend is not exercised'Lessee and Lessor agree thaL l,essee shall promptly pay to Lessorimmediately after tfre Option Cutoff Date as Additional Rent

ä60,422.O0 to compensate Lessor for the cost of the tenanti*pro.r"*ents that had been anticipated to be recovered durinq Lhe

Option Term.

8.0 Riqht of First offer. Provided Lessee is not then indefaulL, Lessor hereby grants to Lessee .a right of first offer(the 'Offer Right,') io -Iease the adjacent ?p?g" on the segoldfloor space (suit.e 201) (the "Offer Space") ind'icated on ExhibitB. Lessee may only exercise the Offer Right in conformity l¡,iththe following Procedure:

8.1 V,rhen Lessor becomes aware that the of fer space is orwill become available for lease, Iressor shal1 give notice toLessee (ttre ,, Iressor's offer Notice") that such offer space is orwill be available for lease. Lessor's Offer Notice shall specifywhen the Offer Space will be available for lease' and the baserental rate, t"rrãrrt improvement allowance, if âDY' and term oflease for the Offer Space. Lessee shall have ten (L0) days

following receipt. of Lessor's Offer Notice tò respond to suchnoLice, ánd Lo inform IJessor whether or not Lessee is willing tolease trhe Offer Space at Ehe tíme and upon the terms set forEh inLessor's Offer Notice. In Ltre event Lessee shall faíl to respondLo Lessor's Offer Notice within such ten (10) day period.or doesnot elect to lease the offer space, Lessor shall have no

obligation to lease the Offer Space to lJessee, and may thereafterleasã the Offer Space to any other interested party, on whateverterms and conditions that Lessor may desire, in its sole andabsolute discretion, notwitlrstanding the Èerms and conditions ofLessor's Offer NoLice. In the event Lessee exercises its OfferRight in the manner herein prescribed, tessee and Lessor shallprãceed to negoti-ate, i; good faith, the constructionãbligations, tlinimum MonÈhly Rent, term, and other terms of thef,easã to reflecL the inclusion of the Offer Space in the I¡easedPremises. If Èhe parties fail to execute a lease agreement forthe Offer Space wl¿nin Lhirty (30) days of Lessor's receipt of

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Lessee's notice, then lressor may thereafter lease the Offer Spaceto any oËher interested party so long as tshe terms of such leaseare ,rãt less favorable to Lessor than those previously profferedto Lessee. Lessor shaIl conLinue to offer the Offer Spaces toLessee as they become available for lease. throughout tLre term ofthis Lease.

l-l-. 0 Selected Fixed Operatinq Costs. Commencing or¡ theEffective O-te, 'insteaa of the proraLa share of the OperatingCosts identif ied. in .furticle 7 of Lhe' Lease, Lessee sha}l pay afixed amount ("Fixed Amount") each month.

l-1.1- Commencing on the Ef fect.ive Date, the Fixed Àmountshal1 be ç4,7L2.95 per month for 1995. Each year, beginning on

.Tanuary lst, the Fixed Amount sha1l be increased by multiplyingLrrã pË""eding yearrs Fixed Amount by 1.05. Thus, the Fixedemount for 1-996 shal1 be $4,7L2.95 x 1.05 = ç4,948.60 per monÈh'

11.3 Notwithstanding the preceding, Lessee shall beresponsible for the repáir and maintenance of their signage andlesËee is responsible for the collection of litter in the areasreserved for Lessee's use and will have the areas policed forlitter each day that classes are in session. rn addition to theFixed Amount, Lessee sha11 pay the following costs:

9.0 Pro Rata Percent- OnPro Rata I defined in Article 1-8from 42.27* to 50.0508.

10.0 Utilities. Percent- On

ULilit.ies I def ined in .A'rticleincreased from 49.48% to 60-1-3*.

(a)(b)(c)(d)

t2.0IreaSe AreAddendumUtilities

Lessot'sInitials

the Effective Date Lhe Initialof the Lease shall be increased

the Effective Date the rnitiall-.8.A of the Lease sha1l be

I îtq? .. t-i¡''| ^ /-\tl

?'*i, tr.

.{t

'.1,t¡!i . ,,ì

.i/

,44{ ^r J'"t'6xi n i

.1r$0,.'.'iltsrkv!' ll .i ì

, í r\ ." î.i'^l*i- " ;.

- r'1,/

Pro Rata Percent of Real Estate TaxesUtilities Percent of electricit'y costsUtilitíes Percent of natural gas cosLsutílities Percent of sanitary ser^ter and domestic watercosts (this does not include the iost of water used forirrigation). If this amounÈ is combined with otherwater and sewer charges and the various componenÈs cannot be separated from Ehe information provided on theinvoices, Lessor sha1l make a reasonable determinationof the amount allocable tó the varíous components'

voíd sections. The following sections of tsbe originalr"r roidr J\ddendum section 2 Right, of First, Refusal,Sectíon 3 Option to Rene\^t, Addendum Section 4

8.

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13.0 Ratification. ExcepL as amended hereby, all of theterms and conditions of the Lease shaIl remain in fu]I force andeffect and shalI be binding upon the parties hereÈo in accordancewith the terms thereof.

14.0 Effective Date. The date of Substantial Complet'ion ofthe Tenan| Improvements to e>çansion space (the "E>çansionspace,') sha1l be the effective date (the "Effective ÐaLe" ) . Ifthe Effectiwe Date would be a saturday, sunday, oT holidayrecognized by the Post Office, the Effective Date will be thefirsi busineÀs day following that Saturday, Sunday, oI holiday.The locaLion of the E>çansion Space is depicted on Exhibit B.Substantial Completion means the occurrence of all of thefollowing:

a. Lessee can use the Leased Premises for its intendedpurposes without materíal interference to Lesseeconducting its ordinary business actj-vities and theonly incomplete items are minor or i.nsubstantialdetails of construction or mecbanical adjustments'

b Issuance of permanent certificates of occupancy for theLeased Premises, containing no provisíons for work tobe coml¡leted prior to the effectiveness of thecert.ificates. Notwithstanding tshe preceding, if theCíty of TulçrÀtila does not Íssue a Certif icate ofOccupancy upon the completion of tenant improvemenÈwork, then the signed off inspection records willsuffice.

Lessor has cleaned the E>çansion Space and otherwiserendered it in new and reasonably unblemishedcondition, excluding anyt'hing caused by l,essee, it'sagents, servants, contractors, invitees, ot employees.rtris work will include, withouL limitation, Lhefollowing:

(1) all tile floors weL mopped, sealed waxed, andbuffed;

(2') all walls and partitíons cleaned and all damagedplaces filled and touched uP;

I

c

(3)

(4)

all glass cLeaned on both sides;

all trash, dirt and leftover materials removedf rom the Leased Premises, excluding anyt'hing

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caused by Lessee; and

(s) all ceramic tile work installed as parL of thisTenant Improvement buffed and the grout sealed-

15.0 Inspection and Punchlist. Before Lhe Effective Date,the parties wilt inspect the Leased Premises, have all sysLemsdemoñstrated, and prepare a punchlist.. The punchlist will lisL:

a. incompleLe, minor, and insubsËantial det.ails ofconstruction;

b. necessary mechanical adjustments; andc. needed finishing touches-

1-5.1 Lessor will compleLe the punchlist items within thirty(30) days after Lhe Effective Date. Following the EffectiveDate, Lessor will promptly correct, êL no cost to Lessee, anylatent defects in the Leased Premises, Improvements, and/orconslruction thereof as they become known, if Lessee notifiesLessor of a defecL within six (6) months after the EffectiveDate.

16.0 Real Eqtate Brokers.-Lessor and Lessee each representsand warranEs to Lhe other party t'hat it has not authorized oremployed, or acted by implication to authorize or employ, anyreãt èstate broker or salesman to act for it, in connection withthis First Amendment, except for NONE. Lessor and l¡essee shalleach indemnify, defend. and hold the other party harmless from andagai-nst any and all claims by any real estate broker or salesmanrho¡n the iidemnifying party authorized or employed, ot acEed byimplicaLíon to authorize or employ, to act for the indemnifyingparty in connection with this First Amendment-

17.0 Àdditional Chanqes. In addition Lo the other changes Eo

the origri;àr r,"ã"" referred to in this Fírst AmendmenL, thefollowing revísions of, and additions to, the Original Lease areincorporated in the Lease:

L7.L Entrv bJz Lessor. Article 23 of the Original Lease isrevised in its entirety to provide as follows:

Lessee shall permit. T,essor and. Lessor's agenÈs and anymorLgagee under a mortgiage or beneficiary under a deedof tiuåt encumbering the Building containing the LeasedPremises wiCh reasonable prior notice of at least 24hours at all reasonable times for the purpose of

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inspecting the same or for the purpose of maintainingthe Building, Qî for the purpose of making repairs,alteraÈions or additions to any portion of theBuilding, including the erection and mainËenance ofsuch scaffolding, canopies, fenÇes and props as may berequired, or for the purpoåe of posting notices of non-responsibility for alteratiolrs, .addiÈions or repairs,or for the purpose of placing upon the Building anyusual or ordinary "for sa1e" signs, wiLhout any rebateof rent and vüithout any liabílity to Lessee for anyloss of occupation or quiet enjoyment of the Leasedpremises thereby occasioned, and shall permit Lessor,at any time within nineLy (90) days prior to theexpiralion of this Lease, Lo place upon the LeasedPremises Any US1}aI Or Ordinary "LO let" Or nto lease"signs. This Article ín no way affects the maintenanceobligations of the parties hereto. In the case ofemergency, no prior notice to Lessee is required'

77.2 Subordination. Article 3l- of the original Lease isrevised in its entirety to provide as follows:

This Lease shal1 be subordinate to any ground lease,mort.giag:e, deed of trust, or any other hypothecation forsecurity no\^r or hereafter placed upon the real propertyof which the L¡eased Premises are a parE and to any andall advances made on the securiey thereof and to allrenewal, modifications, consolidations, replacementsand extensions thereof. Notwithstanding suchsubordination, Lessee's right to quiet possession ofLhe Leased Premises shall not be disturbed if Lessee isnot in default and so long as lJessee shall pay the rentand observe and perform all the provisions of thisLease, unless this Lease is otherwise terminatedpursuant to íts terms. If any mortgagee, trusLee orground lessor shal1 elect to have this Lease prior tothe lien of its morLgage, deed of trust or ground1ease, ar¡d shal1 give written notice thereof to Lessee,this Lease shall be deemed prior to such mortgage, deedof trusc or ground lease, whether this f,ease is datedprior or subsequent to the date of said mortgage, deedof tsrust or ground lease or the date ot recordingLhereof. Lessee agrees to execuLe any documenEsrequired to effectuate such subordination or to makethis Lease prior to the lien of any mortgage, deed oftrust or grãund lease, as the case may be, aa++a¡i+iæe€€--do-*se within ten (10) days after written demandT'

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t, r

' It is understood bYall parEies, Lhat Lessee's failure to execute thesubordination documents referred to above may causeLessor serious financiaL damage. by causing the failureof a fi-nancing or sale trånsaction. If trhe holder ofany ground Iease, mortgage, deed of trust or securitydescribed above (or its successor-in-interest),enforces its remedies provided by 1aw or under theperEinent mortgage, deed of trust or securiËyinstrrrment and succeeds to Lessor's inEeresE in theLeased Premises, Iressee sha11, upon request of anyperson succeeding to the interest of such lender asresult of such enforcement, automatically become thelessee of said successor-in-ínteresL without change inthe terms or other provisions of this Lease, provided,however, that said successor-in-int,erest shal1 not be(i) bound by any palzment of rent for more thirty (30)days in advance, except prepa]¡ment in t'he naLure ofsecurity for the performance by Lessee of iLsobligations und.er this Lease, (ii) bound by anymodification or amendment of this Lease to shorten theterm or decrease the monthly rent wiLhout the consenEof such lender or such successor-in-interest, (iii)liable for any act or omission of any previous landlord(including f,essor) , (iv) subject Èo any of fset,.defense, recoupmenL or cor¡nterclaim that Lessee maytrave given Lo any previous landlord (including Lessor),or (v) liable for any deposit that Lessee may havegiven to any previous landlord (including Lessor) thathas not, as such, been transferred to said successor-in-interest. Vlithin Len (10) days after receipt ofrequest by said successor-in-interest, Lessee shallexecute and delíver an instrumenL or ínstrumentsconfirming such atÈornment, including a non-dísLurbance, attornment and subordination agreement intrhe form attached. hereto as Exhibit þ and made a partshereof, subject to such revisions in such form assuccessive lien holders may reguire from time to time-proyíiled such forÍ! does not, materiallv chanqe Lessee'sriohts or obLicratíons u¡xdef the Lease.

t7.3 Estoopel Certificate. Article 32 of the OríginalLease is revised in its entireÈy to provide as follows:

vüithin ten (10) days after receipt of writtenby Lessor, Lessee shall execute and deliver toan est.oppel certificate acknowledging such

requestIreSSOrfacts

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Lessot'sInitialsæ21104 l2:19 PU lf|:¡.Dæ

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regarding this Lease as Lessor may reasonably reguire,includiné witnout limitation, that (i) this Lease is infu11 foice and effect, binding and enforceable inaccordance with its t.erms and unmodif ied (or ifmodified, specifying Fh" . written modificationdocuments); (ii) no defaulÈ exists on the part ofLessor or Lessee under this Lease; (iii) there are noevenÈs which wÍth the passage of time, or the giving ofnotice, oy boLh, would create a default under thisLease; (iv) no rent in excess of one month's renE hasbeen paid in advance; (v) Lessee has not received anywrittãn notice of any o¡her sa1e, assignment, transfer,mortgage or pledge of this Lease or the rent d'ue

hereunãer; and (vi¡ Lessee has no defense, setoff'recoupment or counLerclaim against Lessor. Any suchestoppel certificate may be relied upon Lessor, anylendei and any prospective purchaser of the Building orComplex or any interest therein.

17.4 Notice and Rioht to cure Dçfau1t. Lessee agrees togive any mortgage;(;) and/or trus| deed holders, by registeredmail, a copy of any notice of default served upon Lessor,provided thã¿ prior ù such notice Lessee has been notified, inwritingr (by way of Notice of Assignment of Rents and Leases, orotherwise) I of the address of such mortgagees and/or trust deedhol-ders. Lessee further agrees that if Lessor sha1l have failedto cure such default within the time provided for in this Lease,'then the mort.giagees and/or trust deed holders shall have an

additional thirty (30) days within which to cure such default or,if such defaulc cannot be cured withín that time, then suchadditional time as may be necessary if, within such thirty (30)

days, âDy mortgagee -nd/ot trust deed holder has commenced and isdiligently purs,ri-ng the remedies necessary to cure such default(includ.inõ -¡,tt not limited to conmencement of foreclosureproceedints, if necessary to effect such cure), in whích eventCfr:-s Lease sha11 nob be terminated while such remedies are beingso diligently pursued.

1-g.0 Recordinq. At the request of eíther party, the partieswill promptly ã*e""C" and. record, at the cost of the reguestingpartyl a short form memorandum in the form attached hereto asnxtri¡it c, subject to such revisions as and made a party hereof.

19.0 Delay in Deliverv. In the event Lhat SubstantialCompletion has not occurred on or before May 1-, L995, excepL as aresult of "Force Majeure" or "LeSSee Delay" (aS defined belOw),T,essee will receive a Rent reduction of $248.00 for each dayaf ter May !, l-995 until Substant,ial Completion occurs. In the

æc-lt¿,Lessor'sInitialso0/2tr0a 12:1e Ptí frß.Doc

Lessee'sInitials

Page l0 ofl2


everìt that Substantial Completion has nots occurred on or beforeJuly 31, 1995, except aS a reSult of "Force Majeure" or "LesseeDelay" (as defined below),Lessee ilâY, upon writLen notice toLessor, terminate this Lease provided such _notice is given afterJuIy3l,lgg5andpriortoSubstantialCompletion.

1-g.1 As used herein, a "Force Majeure" occurrence means any

delf resulting from or caused by an Act of God' fire'eartírguake, flãod, ex¡:losion, action of the elements' war'invasion, ínsurrection,- riot, mob vioLence, sabotagie, maliciousmischíef, inability to procure or general shortage of labor'equípmenL,facilities,materialsorsuppliesintheopenmarket,failure of tr-n"porLation, sLrike, lockout, acLion of laborunions, litigatíon not wíthin the reasonable control of Lessor'condemnation, requisition, law, order or regulation of gOvernment

ãi:.i"if , miritåriy or naval authority' or any other ca.u:se (exclu-aing- financiaf inã¡ifity) , whether ãimitar or díssimilar to theforãgoing, not within the reasonable control of L,essor.

The term ,,Lessee De1ay" sha1l mean any delay in the constructionof the tenant improvements to be constructed by Lessor pursuantto Exhibit uA* hereto (the "Improvements") caused by (i) any

changes in the nature or scope of the Improvements requested by

Lessee (including change otå"t", or changes in the -plans and

specif icat j-ons for the Improvement.s) , (ii) Lessee's failure tot-imely provj-de Lessor wiff¡ any needed information on the Im-provements, or (iii) Lessee's ?ailure to timely review and, tothe exlentr necessary, approve any space plans, bids, workingdrawings, "or=tructiãn

diåwings, fínish s-pecifications, and any

other plans -"áZ"r specific.liott" for the rmprovemenLs' The

Improvements sfraff be delivered tso Lessee when the Improvementsare ,,substantially Complete. " In Che event of any Lessee Delay,the Effective nale snãff be deemed to have occurred, and theobligations of Lessee under the Lease, including withoutlimit,ation thå obligation to pay rent, shall be deemed to have

commenced, on the aãte the Sftettive Date would otherwise have

oecurredhaditnotbeenfortheLesseeDelay.Anycostsand.rç.n""= incurred by Lessor as a result of Lessee De1ay'

íncluding without -limitation space planning fees,- permitresubmittal tãás, increased construction costs, and the like'shallte reimbursed by Lessee t'o Lessor

IN VíITNESS üIHEREOF, the parties have execuËed t'his Lease

Extension as of the date first above written'

This Lease will not be binding, unless signed by both part¡es and an originally signed

counterpart is delivered to Tenant by October 31, 1994'

qMLessor'sInitials

Lessee'sInitials

**

08¿iB f 2:19 PM rß-DOC

Page ll of12


T,ESSEE:

T,ESSOR

Lessor'sInitials

By REAT,its L

By:htrandaVíce Pres

Date: ê

M¡IÑAGEMENT COMPANY,

Lessee'sInitials

ITT EDUCATIONAL SERVICES, INCa Delaware Corporation

By:

Name: Q,C

f2-ïts:Date: Ç-^lç -q/

KATSER GATEVüAY ASSOCIATESa California general parLnerstrip

By: SEATTLE GATEVüAY, INC.a California Corporation.íts general ParLner

FOR OFFICE

Prepared by:

Reviewed by:

Approved by:

æ<

00¡¿18 !2:r8 PM rrB.ooc

Page 12af 12


¡TT Educational Services, lnc.

November 3, 1994

Mr. John GleasonKemper Real Estate Management Company12720 Gateway Drive, Suite 107seattle, wA 98168

Re: ITT Technical lnstituteSeattle, Washington - Lease Renewal

Dear John:

This is to advise you that we received our fully executed copy of our new lease onOctober 31, 1994. Thank you for your assistance in obtaining this document by ourmutual deadline.

Sincerely,

,{o.^--"-^- 'çLaura A. WoodallReal Estate Manager

LAWsm

2nd Exhibit D

5975 Castle Creek Parkway, N. Dr., P.O. Box 50466,Indianapolis,IN 46250-0466Telephone (377 ) 59 4-9 499

rIgCase 16-07207-JMC-7A Doc 500 Filed 10/26/16 EOD 10/26/16 14:35:10 Pg 64 of 125

I

.TþIE tlYts'fËUü!¡fi¡'¡' ¡"t.¡J.!¡!, !:(Jtlr ts¡lev¡r¡J ¡rr .læ'

",-,,ani¿r Tlrr,s coup$r--..ìl8 À$ 40001ÁU0DÂ"r ;r.|! irtrlry. IT I{å8 IIOT 8E }:r¿$rrcuo As T0 u3EdI¡CIITIOIY OA Ag tO ITs E!¡ll0f UPOtr fg8 flÍLl'

.tut[ì[ ¿ ¿ lwu

,:¿ll

KRECORDING REQUESTED BY Àl{DWHEN RECORDED IIATL TO:

Brobeck, Phleger & HarrísonOne llarket Plaza

. Spear Street Tower, 24t-tr Floorå.'r . san Francisco, California 94105

AÈtention: Douglas G. Van Gessel, Esg.

OnIGINAI,FILED

APR u 4 igg0

Director ofRecords& Elections

OF

oa(>dcq*\\.

SttBoRDrNAt!ÎON, NON-DISÎSRAÂNCEllÍD IITTORNI,ÍEIT! AGNEËUENTI

lûotlICE: aErS SUBORDTilåÎrON, NON-DI8ÎI¡RBAIfCE ål¡D A'lrrORNl,fENTAGREET{ENI! RESULTS IN TOSR I,,EA8EEOT.D E8TÀ18 IN TEEPROPERTY BECOTIING SI¡BJECT ÎO ÀI¡D OF TÍIIÍER PRIORITY :TAAN

IFEE ÍJIEN OF 8Ot'fE OTEER OR LATER gECttRIÎY INSlrRUllEl¡T.

TEIS EUBORDXNAtrION, I¡ON-DISTURAANCE Âl¡D ÀTllORNl.fElrTÀcREEttEt|'Í[ is nade by and between lenant, I¿ndlord, andBeneficiary and affècts the Property described in Exhíbiç Aattached héreto. The tet¡rs ttTenantr rr rlandlordr rr rrBenefíciary,'tñPremisesrtr lrleaserr trPropertyrtt mloanrr rrNotetr and [l{ortgagerrare defined in the Schedule of DefinÍtions attached hereto asExhibit B. This Agreenent is entered into r¡ith reference to thefollowing facts¡

A. Iandlord and Tenant have entered into the Leasecovering the Premises in the Property

B. Beneficiary has made or is about to make the Loanto landlord, which is or trill be evidenced by the Note, whichNote is to be secured by the lfortgage covering the Property.

C. The parties hereto desire expressly to subordinatethe Lease to the lien of the lfortgage

D. Tenant has requested that Beneficiary agree not todl.sturb Tenantrs possessory rights in the Preml.ses in the eventBeneficiary Ëhoulä forecloãe tñe üortgage provided that lenant isnot then 1ñ aeeautt under the Iease and provided further thatTenant attornE to Beneficiary or the purchaser at any foreclosureor trusteers Eale of the ProPertY.

mutual covenant-s'consideration,

acknowledged, theNolf IIEEREFoRE¡ in consideration of the

contained hereÍn and for other-good and valuablethe receipt and sufficlenc! of sUic¡ are herebypartLes agree as follows: .r ,, .

. 1. Subordination. NotsLthstandingcontrary set forth ln the Lease, ttre tease .and

G : \PB\0vc\0vc009. t150

r€rsl .03./20190

anything to thethe !.easehold

" f¡lcd hr Rrord d'RoCüQü of ì

TIRST ffiIERICAN TITLEFO$NH 3 ã.TWHARDBLDG.

TEATTTE,TA S121


It

estate created thereby and all of Tenant,rs rights thereunder areand shal1 at all tl.nes renain uncondltionally sutrrject,subordinatê:.lnd lnferior to'the llortgage and the lien thereof ,and all rtfüts of Beneficiary tlrereunder and to any and allrenewaLs, ¡¡o¿ifications, .consolidations, replacements andextensionE thereof.

2. Acknowledcre¡nent and Àgreernent bv fenant. Tenantacknowledges and agrees that:

a. It has notice that the Lease and the rent andall other sums due thereunder have been assigned or are to beassigned to Beneficiary as security for the Loan secured by theftortiage. In the evenL ttrat Beneficiary notifies Tenant of adefault, under the Hortgage and demands ttrat Tenant pay its rentand all other sr¡ns due-uñder the Lease to Beneficiary, TenantshalL honor such de¡nand and pay its rent and all other sums dueunder the Lease directly to -geneficiary or as othen¡ise requiredpursuant to such notice.

b. It shall send a copy of any'notice orstatement under the Lease to BeneficÍary at the sane tine suchnotice or statement is sent to Landlord-

c. This Agreement satisfies any condition orrequirement in the Lease relating to the granting of a non-disturbance agreement.

3. Fs¡reclosure and Sale. In the event, of foreclosureof the litortgage t Qt upon a sale of the Property pursuant to thetrustee's pãwér'of saie contained therein, or upon a-transfer ofthe ProperLy by conveyance in lieu of foreclosure, then:

â. Non-Disturbance. So long as Tenant conpliest¡ith this Agreement ãñ¿ is not in default under an¡¡ 9f the terms,covenants, ãr conditions of the Lêase, the lease shall contlnuein full färce and effect as a direct iease between Ü¡e succeedingowner of the Property and Tenant, upon and subJect to all of theter:us, covenants-and-conditions of Lhe Lease for the balance ofthe té¡m of the Lêase. Tenant hereby agrees to adhere to andaccept any Euch successor ouner as lãndlord under the lease, andto bã ¡ouira by and perforts all of .the olrtigat,ions funp-osed by theÈaie. geneficiaryl or any such successor owner.gf the^Property,titi not dlsturb tËè posseãsion of Tenant, and trill perfotm and¡ã-Ëouna by all of thä obligations inposed on the Iandlord by theiãa=" provided, however, thãt Beneficlary, or any pu¡cþ39er at atrusteã.s or súeriffts åa1e or any successor ownèr of thePrope*y shall not be: ., , : . : '- , ,. i'

- (!). liable f9¡ any act or onission of ? .prlor landl.ord (including Iandlord) , oÊ " ;' 't' i , . -


)

(11) subject to any offsets or defenses whichTenant night have agalnst any prior landlord (includingrandlord); or

(tii) bound by any rent or additionar rentshich tenant night'havä paid in áavañce to any prior landlordtl"ã|"áfng Landíord) fo¡-a períod in excess of one ugnth 9r by][t-5gõiíti deposii:, clean]ng deposít or ottrer prepald charEeshich lenant níätrt håve paid in aávance to any prior landlord(lnclirding Landlord) ; or

(1v) bound by any agreement or nodificatíonof the Iease made witfràut the writteñ consent of Beneficiary.

4Landlord, as landlord the lreaseunder the !lort9a9e, acknowledges and

and uortgagor oragrees for itself

trustorand its

heirs, successors and ass igns, that:

a. Thls Àqreenent does not:

(i) constitute a waiver by Beneficiary ofany of its rights under the ltortgage; and/or

(ii) 5.n any way release landlord fro¡n itsobligations to coupiy itittr the-ter:ms, prpvisions, conditions,coveñants, açtreements and clauses of the Uortgaget

b. The provl.sions of the Itfo+gage- remain in fullforce and effect and nusL be conpl.ied with by'Landlordi and

c. In the event of a default under the li[ortgagetTenant shall pay all rent and all other suns due under the Leaseto Beneficiar? as provided in the llortgage.

5. ' Benefi."l"fY shallhave no oblLgatffilability ritb respe'ct to theerection or corpletion of the ìinproveuents in which tÌre Prenisesare located or ior con¡lletfon-of- tlre PrenÍses or any f.nprovementsfor TenantrE use and oËcupanof, e-ither at the commencement of thete¡m of thc Lease or upon any-ienewal or extension thereof orõã; ùfr"-iAaftion of aäaitioiral sPace, pursuant to any expansionrights contained in the lease.


t

7. Èliscellaneous.

a. This Agteement supersedes any inconsistentprovisíon of, the Lease.

b. NothÍng contained in this Agreemelt :hall beconstrued to derogate from or in any way inpair or affect thelÍen and charge oi provisions of the Hortgage'

c. Beneficiary shall have no obligations norincur any lÍability vith respeãt to any r¡arranties of any naturevn.i"o".rår, whethe-r pursuant to the Leãse or otherwise,il;i;ãi"g,'witnout linitation, qly w?ffanties resPecting. use,;;;iËåå ritü zotitg, r¿ndlord'ê title, Iandlordrs authority,trabita¡illty, fltness-for purpose or possession'

d. In the event that Beneficiary shall acguiretitle to the Prenises or the Property, Beneficiary shall have noo¡iiàatfon, noi ín"ur any-fia¡ilLtyr beyond Beneficiaryrs then¿q"fÉt intärest, if any, in-the Pré¡nises, and Tenant shall'Lookãiciuåively to-å"ãtt ãqüity interest of Beneficiary,. if "lY,

inthe premisãs tor ttre fa¡nränt and discharge of any obligationsinposed upon Beneficiär! trereunder or under the Lease, andããããiiãiã^tv i" hereby rêleased and relieved of any otherobligationã hereunder and under the Lêase

e. This Agreenent shalI inure to the benefit ofthe parties herèto, thelr iespective successors and permittediËãiãñã;-ói""fãed,'however, that in the event of the assignnentãi-tianåfèr oi tträ interesù of Beneficiary, a1t obligations andiia¡ifities shall be the responsibility of the Party to whom

Ë;ã¡i;iã*,= -iñteiest is asËigned or Lransferred; and provided

iurttter thãt tñã-iñterest of Tãnant under this Agreement may notËã-|5;ig"ã¿ or transferred without the prior written consent ofBenef iciary.

f. If tbe lease provides that Tenant is entitledto expansion spãce, neither-BenefLcÍary nor ?ny- ggccessortandlord snari-ñã"å â"V obligatlon, o3- any liabitity for-failureõ--;;ñi¿ã suèn oçansion- spãce if låndlord, by reason. ofieaÈe(s) enterãd tñto with óther tenants 9f the Property, hasprecfriaäa the availabtlity of such e:çansion space.

g. Tt¡ls Agreement shall be governed -by andconstrued ln acååraanãã-wittr the laws of the-state of California.

fI{ rIllllfE8s TEEREOF, the parties have executed thisSubordinatfon, :Ñãã:ói"l"rbanäe and lttornment Agreenent. as,of

, 1990.

NOEICE¡

G!\P8\0vG\0vG009¡c¡g'l . Of./ZOI9Q


f

IETCE UAT BE EXPEIÍDED FOR OIEER PI'n'POSES TEÀ¡IIttPROVEllEl¡l! OP !!EE PROPER!!Ï. '

IT 18 ntcotlllEttDED llEt'!, PRIOR llo |lAE EXECI'TÎOU OF ÎAr8ãusoRD¡mtrotr, tfotÍ-DtgrûnBâIscg tr¡D tsronxttgtt! tcREEt{Et¡Î, llEEP¡|RTIES CONSUI¡T

'TEg ÎEEIR ITSON¡¡EY8 IIAtr RE8PECÎ ÍtrEruTO'

BENEFICIÀRY , a New Yorlc banking

By:Its:

TENÀI{T: ITT EDI'CATTONAt SERVICES, rNC., a

By:Its:

I,ÀI{DLORD: KATSER GAIEI{AY ASSOCTATES, acal tf o rnla general partnership

CHEUICALassociat

ffi

By: BEDFORD GÀIEI{AY, INc., aI Catifornia corporation as l'tanaglng

General Partner

By:

C : \P8\DYG\0VG009.¡150rcrgl OSI¿O190

t¡ld lûr Rsrd d Requdt ol- -ru*¡ltffiH¡.*t' -- ierrrue' wA s121


f {

PNOPERIÏ DESCRISTION

gchedule of Definitlous

rBeneficiary" shall nean Chenical Bank, a ryeY Yorkbanking association. ÀIl notices hereunder to Beneficíary shal1be nailed to:

Chemical Bankc/o Chenical RealtY GrouP277 Park Avenue, 12th FloorNer¡ York, New York LAr.72Àttention: !fs. Sheryl À' Brown

rl{ortgagerr shall mean a Phase III Onnibus Ämendment toSecurity Agreemãnts dated October 6, 1988 encurnbering thePropert!, ãxecuted by Landlord, as irustor, to The First AmericanTitie liåurance Compãny, as Trustee, ln favor of BenefÍciary,ããã"ii"g-iãpalment ãf Lne ¡,oan evidencea ?y the Note, recorded inthe OffícÍai ñ,ecords of King County, I{ashington on October 14,1988 as Instrument No. 8810140825.

ÚLandlordr shall Dean Kaiser Gateway AssoCiates, aCalLfornía general partnership, c/o Bedford Properties at 12870Interurban Ãvenue South, Seattle, t{ashÍngton 98168'

rf€aseü shalI Dean a certain l.ease entered into by andbetneen Landlord and Tenant dated as of November 14, X989,covering the Pre¡¡ises, and all amendnents thereto'

rl^oanx shall mean a first nortgage loan in an amount of9171250rOOO.OO frou Benefíciary to I¿ndlord.

rNoten shaIl nean that certain Deed of Trust Noteexecuted^ by Landlord in favor of Beneficiary dated October 6,1988, in the amount of $17r25010o0.00.

trpremisesn shall uean certaLn space in the improvementsIocated in and uPon the ProPertY.

iPropertyü shall mean the re?l property described ingxhiblt n attaäneA-hereto together with the iurprovements thereon.

rTenantn shall nean ITT Educational senrices, rnc. 'having "n oiif"e at L272O Gateway Drive, Suite 1OO, Tulnrila,Ttashington.

G:\P8\DVG\DVG0æ.tl50rcn¡l 03/20.190

1ffi


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isiìÊ**.=::

EXHIBTT A

fHt tå¡tD RlrgRRlD Ît¡ lx lllts cotallÎllnlî ¡3 sltuAltD tN lHEsl^lE Ot rAsHtilclf¡tl, cor¡ttlll ot K¡tlc Allo 13 otscn¡ltD rsFOt lþllt¡PATCTI A:

tgl! 1, 2, t NlD a Ot Ctlt Ot fltiltÎ¡ StlOtll Pl^Î NO. 83'32-9!r RTCORDID lmDtt f,:ltc comfÎl Rlcononlc tlo. aallt?o38e,Rlc€noo ol Í¡t¡c €olllllf[r lllËlñlÎQll.PÀtclt t3A tfoÍ-tÍCW!¡VS lrtalDfl t(ll tOtD D0t¡Ott¡ fa. ?lt! ttf ï¡rymtXftñD¡trú¡ tRot ntl ttt8 rllEtl¡.f col¡ltl ot Ut! ¡ ot SltDSll0tt PtAÎl lfollnilllll&f üftXC tll ro;tElrfltü,Í t{t¡c¡ll otfit nt€t! SOUXD lt¡CltlC ff¡lltl lt(Ill €t'rll I Oltlrllql o?ltõ lltÍ, rcttl ot t¡¡tt, Î{t t totD etottltlo, lÈlsoûür¡gtrn¡r &¡tfl o? lt¡D Jltlt lEtxl þa}ltcr& rttl t'lEñOlm¡¡fgftflf t.Itfl O? tÀlD tt€û]l'Ot-Ilt.PIICIL C¡

rtr tt!D8l! Fol ttotllt, túilltt rm wDrrcroulD ultt¡tlltt Asrtit lo;¡t lt lilta ilÍrülEt-l r¡c9rDtD t rotr llro co(rlrrEtcolDtrc ilo. laoallot?|.rt& ttÍtrrl tI ant cÎll ot n¡ån¡r, cælllr ot rffi¡, slttt otrt Ë¡:lrcl{rf

EXHIBIÎ A

(

W


sTÀrE oF INDIÀNAss.

cottNtY OF MARION

On thLs 22nd' day of llarch , in the Year

19gO, before me, Debra J. Ellig , Notary Pr¡blLc ln

and for the State of Ind'iana personally appeared

Rene R, ChamPagne , personally known to me (or proved to

me on the basis of sat,isfactory evidence) to be the persons who

executed the wLthin instrunent as President on

behalf of the corporation theref-n naued, and they acknowledged to

ne that the corporation executed it.

Il{ ÍIÎNESS TEEREOF, I have hereunto set ny hand and

affixed ny official seal in the County of Marion the

day and year in this certificate first above written.

In and for tate of Indiana

\ JIy connl.ssion ErcpÍres: e/L0/93

IsEÀr,]

)))

G : \Ps\0VG\DvG0l¡9.t¡50rcrsl O3lZ0l9O

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õ

sÎÀTE OF l{ÀsHIl{GÎo!{ss.

COI'NTT OF

On this 27Èl¡. daY of in the year

1990, before ne, ten L. Ke11oqe , Notary Pt¡blic in

and for the state of l{ashington, personally appeared

Joseph S. Laynan. - , Personatly known to ne (or proved to

De on the basís of satisfactory evidence) to be the person who

executed the l¡ithin instrunent as Vlce Presi.dent .on

IN rI1NE88 giEEREOF, I have hereunto set my hand and

affixed my official seal in the County of Kl.ns the

day and year in this certificate flrst above sittten.

In and for the State of tfashington

)))

Bedford --- ---! ! --behalf or ïääå¡r Gateway, rnc', a california corporation' â r¡anaglng

generaL partner of Kaiser Gateway Associates, a Call-fornia

general partnership, (ttKaiser Gateway Associatês"), and he,/she

acknowledged to me that Kaiser Gateway Associates executed it'

tly Connission Expires: Plrlq t

, [sEÀL¡

G : \P8\Dv6\0vG009.¡¿50icrgl OtlZOl9O '


u

STATE OF ¡IASHTNGTONss.

COT'NTY OF

On this daY of Ln the Year

L99o, before Dê¿ ,, Notary Pr¡blic in

and for the state of l{ashington, personally appeared

, personally known to me (or proved to

me on the basis of sat,isfactory evidence) to be the person who

executed this instrr¡ment on behalf of Bedford Gateway, Inc'.' a

california corporation, a general partner of Kaiser Gateway

Associates, a california general partnership (rrKaiser Gateway

Associatesr) and he/she acknowledged to ue that Kaiser Gateway

Àssocíates executed it.

If, rIA¡¡888 TEERBOtr, I have hereunto set my hand and

affixed ny official seal in the County of the

day and year in this certificate first above wrLtten.

I{OTARY PUBLICXn and for the State of l{ashington

lfy Cornnissiori E:çires:

ISEAL]

G:\P8\pYG\DVG0æ.t¡'0rcrsl OSl2Ol9O

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n ît

{SlAlE OF NE¡I YOR¡( )

))COUTflTY OF flJ¿r¡

on this eô* u"y oe t'f A€nrt , in the year

1990, before ne, S\ber{inc. l¿>-,.¿s , Notary Public inand for the State of New York, personally appeared

, personally known to me (or proved to

me on the basis of satisfactory evidence) to be the person vho

executed the r¡Íthin instrunent as on

behalf of the corporatÍon therein named, and helshe acknowieagea

to me that the corporation executed it.

nÍ fIlNESg rEEREoF, I have hereunto set ny hand and

affixed ny official seal in the county of Btcnn< the

day and year in this certificate first above üritten.

NOTARYIn and for the State of l{ew York

ss

l{y Conniesion Erçiresr 6lzøht

tSEAL¡

G¡\PB\DVG\[email protected] '03./20/90

Ât3ERllNA Jol¡€sNotarh¡blic. Sbtc d ilürlql-

No. O3{896241

*,"H,5:irå,ll,9,r'ri*5rq,J

,ffi,


:{

NOTARY

LESSOR

STATE OF C.fu¿ ça,etùA

coLtNTY oF (p¡søâ ûstnOn this CÇe d"V

)) ss.

)

of ú-44, before

me, the undersigned, a Notary Public in and for the State of (#¿lpl-tenst4 , dulY

commissioned and sworn, personally appeared to me

known to be the t/t¿ø PPr<t rtçl)f of Kemper Reai Estate

Management company, the corporation that executed the within and

acknowledged said instrument to be the free and voluntary act and deed

uses and purposes therein mentioned and on oath stated that he/she was

instrument.

above w¡itten.

foregoing instrument, and

ofsaid corporation, for theautho¡ized to execute said

WITNESS my hand and official seal hereto affixed the day and year in this certificate

and State ofMy Appointment Expkes q ' tr- *ât-

LESSEE

STATE OF *ãa;.a-ca¿

COLINTY Ql tfl.erz-|zrt)

On this .totþ

)))

day of

ss.

me, the undersigned, a Notary Public in and Ståte ofcommissioned and personally appeared

known to be ofcorporation that executed the within and foregoing instrument, and acknowledged

be the free and voluntary act and deed of said corporation, for the uses and

l9-?/, beforeduly

to me

said instrument topurposes therein

mentioned and on oath stated that he/she was authoriz¡Åto execute said instrument.

WITNESS my hand and official seal hereto affixed the day and year in this certificate

above written.

4Notary Public in and for the Søte ofMy Appointment Expires

Laura A. Wcr¡d.ailI'fyCamrdssi*n H>¡ii;s: Jar i.f g?

Ëou*g oÍ F.Ësiiþncs: Marion

Jc/dåt8,lþåsesrlangus gÊ/notaQz

ã¿}a- a) -


ITT Edueatisnal Services, !ne"

November n, t995RECEIVED

NûV 3 0 1995

Mr. John GleasonSenior Properly ManagerKemper Real Estate ManagementlnzÙ Gateway Drive, Suite 201Seattle, WA 98168

Re: Subordination, Nondisturbance and Attornment Agreement

Dear John:

While reviewing the old files for Seattle, I carne upon the enclosed Subordination,Nondisturbance and Attornment Agreement.

It appears that we already have an executed SNDA Agreement with the prior lender and

it hãs been recorded as of April U,1990. Therefore, we actually have priority over the

current lender. In light of this, we will not need to obtain another executed

Subordination, Nondisturbance and Attornment Agreement from your current lender,State Street Bank and Trust Cornpany.

If you have any questions or your lender has any questions, please give me a call at(3I7) 594-4373. Thanks for your cooperation in this matter.

Sincerely,

I,{ o*-*-*-- .4 (¿}*t{^¿€

Laura A. WoodallReaI Estate Manager

LAWhm

2nd Amendment Exhibit E

5975 Casile Creek Parkway,l{. Dr., to. Box so+oo,Indianapoli s,IN 46250-0466

1'elephone (377) 59 4-9 499

ruuCase 16-07207-JMC-7A Doc 500 Filed 10/26/16 EOD 10/26/16 14:35:10 Pg 77 of 125

DE(; 5 1998 3:1iAþr ITT EÐ1jCATI0N SV(,Siln tnro n l:IIV.+YJO T. J

TENA¡¡ÏS ESTOPPEL CERTIFIEATE

To: Any Lender or Mortgagce and its successors and assigns, Landlor4 AùIB Property. L.P.("Purchaser") and its affüate$" succ€ssors and assigns, and any other persons or entitiesrroviding financing or acquiring any interest in the Prcp*ry (as herehaûer d:ûnedl

F.e: Lease dated Novçmbcr 14, 1989 beiøecn Gateway Corporate Propeñies, LLC, as

EuçcÊssor in inierest io Ka¡sËr Crateway Associates (-L?$iiqßi;¡"d,ryI Educ*iet.dService, Inc. ("Tenant"), [which le¿sc has been mociifieð ort¡¡mendsd as follows: #l -Apr¡i 16,1990; #2 - August t7. 1994J covering the premises located at Offics Centcr - å,12720 Gateway Drive, Seattlg lVA (the "Property") (collectively, the "Loåse").

The undersigned Tenant under the Lease eçrtifie$ that, as of this date, the status of the Lcæe is as

follows:

(l) The LÊåse cont'útutes the entire and onþ agreemeßt betrveen the Landiord and the Terrantwith respect to the demised premises identified therein;

(2) The Lease is in ñ.¡lt force and efect in ascord¿nce with its terms, and to Tenant's cunenrknowledge, the Ten¿nt does not havc nor is it entitled to any c¡edit, offsct or claim againstthe obligation to pay rent or other charges, eitler by reason of prepayment thereo{Landlord's acts or omissions, or for any other reåson otherwise;

(3) (¿) The commencement date of the Le¿se w&s M¿rch 15, 1990 and the expiration dateqf the Le¿se is March 3 t. 2001.

(b) There are no options to renew, extend or cancel the Iæ¿se that remain unexçrçisedon the part of tho Tenant, except: Right to Exrcnd Ternr for I additional 4 yearterm upon same terms and conditions exçept for Mnimum Monthly Resrt. lVritr¿nnotiñcation of such cxtension is required by April 1, 2000. F¡ilure to ExerciseOption rezults in Tenant reirnbursing Lessor 96t,422 for TTs. Right of First Offergranted to Ter¡ant witl¡ rcspect to Suite 20I.

(c) Minimum nnonthly rents and the "Fixed ,{mount" for operating cofls, present andñ.lture, are payable as set forth in Schedule "4" attaçhed hereto.

(d) Tenant is responsible for payment of any tax on f€nts.

{4) Tenant is open for busincss in the prerniæs;

(5) Tenar¡t has no option or right üo purchase the Property or the premis€s or any part thereof,and no right of first refusal whatsoever: except the Right of First Offer to lease Su¡te 2ûl;

{6) The socurity deposit being held by the Landlord on the date hereof in accordance withLease is: $0.00:


lj,[t. 5. iv'Jü J:1¿Al[ JIi bijtjt.tIluÌ\ þVtb fiu. 4ubu l. u

(T) All grreranteed minimum rÊnt, oom¡non area maintcnance shârges, real esÈte tæces,

additiond rsnt, and other sums payable by Tenant under the Lease have been fully paid in

accordance with the provisions of the Lease through thc month of Current through

Decør¡ber 3 i,1998;

(8) From and after the date hcreof, Tenant is not er¡titled to ðny free rental oï üty concsssion

in or abatement of rent;

(g) Atl work, if any, to be performed by Landlord has been heretofore completed and all other

materi¡l obligations on Landlord's part to be performed to date h¿ve been satisÊed to the

full satisfaction of Tenar¡t;

(tû) To tenant's eurÏent knowledge, nc dcfault exists under tho Lease on th€ Pârt of cithÊr

Landlord or Tenant;

(l l)

(12)

No installmern of Rent has been paid more than one (l) month in advance;

The Lease h¿s not been assþed, rnodiûed, supplcmcntcd or amordcd in any way (except

as set forth above) and the undvrsigned has ns notice of any assignment, pledge orhypothecation by the Landlord ofthc Lease or ofthe rentals thcreunder;

(li) A true and oomptete copy ofthe l,ease and all exhibits and ¿mendments il¡ereto, if any, are

attsched hereto snd made a part hereof. (Not Attached)

(14) There are no actions. whether voluntary or involuntrr¡r, pending against the undersigned

r¡nder the bankruptcy or insolvency lews of the United States or any ctate or territory ofthe {Jnited Statcs: and

(15) To the best of the undersigrred's knowledge, (i) no hazardous Þ/sstes have bee'n treated,

storÊd or disposed ofin the demissd premisÊs, and (ü) no hsz¿rdous substances havc been

disposed ofon the property

This certificatc shdl be binding upon Tenant and its successors and assigns (if any); and is given

with thc knowledge that it may be relied upon by Purcha*ar, (and/or its assignee andorsuccessors-in-interest as ou/ners of the premisss, and any Lender or Mortgagee) and, that cçrtain

modifications of the Lease ¿nd other actions relating to the LÊâse may require your prior writtençonsent if so speci6ed in the Leasc.

Dated t-21u /q.gWitness: '--.+ z. -l-¿¿¿¿.t d1 Tenant:

By'Title:

(sEAL)

1


DIC 5. 1998 3:1ZAI{ ITT EIJUÇATl0}.l SV(;S NU. 4VbU l. t

SCHEDULE ''Ä''

ITT Educational Scn'iceo I¡c.G¡tcr¡'¡y Corporate Propcrtics' LLC

(Set forth monthly fent paysble for balaocc of term plus options periods, if any, as of November

11,1998)

Minimum Monthly Rentand Fixed Amou¡rt for

Frorn

Current

0t/0V99

0t/0t/tû

0liOr/01

To

ruSlleE

tz/11199

la3v0a

0313 r/0t

Coctc

s29,624.83

929,&97.62

$30,184.05

$30,484.81

Ootions Feriods: Right to E Ête¡¡d Tcrm for I addition¡l 4 year term upon same ærms and c.onditions

exæpt fo¡ Minimr¡m Monthly Rent Wrinen notiñcation of such extension isrequired by furil l, 2000. Failure to Exercise Option resulß in Taunt reimbursrng

I-essor $60,422 for TI's Right of First Offer grented to Tcnant with respect toudjasent Suite eOt-

RI.l:tyùRcvi¡od: t2/$3i98C:\LEGAL DSPARTMENÎ DOC{/MENTS\RÈâL 88T.{Te DOC¡.MENTSIIEN/q¡ûS ESTþPFEL CERTIFICAïE (GAIEI\¡ATCORPOR.AIE PROPERT¡ES - TEATTLE,POC

3


TIIIRD II¡ñENDMENT TO LEÀSE

THTS THIRÐ AMENÐMENT TO LEASE (the rtThird Amendment") is made

this 20th day of 0ctober ,, . ., 19991..!{-and between ÄMB

rUSrfTUfTõWAl-a¡lfÑE-Fffi f , f,. P. (I'AMB"), a Delaware LimitedParEnershi-p (hereinafter called 'rLessorr') and ITT EDUCATIONAL

SERVICES, -INC. , a DeIah/are Corporat,ion (hereinaf ter called

ttlresseerr)

WHEREAS, AMB's predecessor in interest, Kaíser GatewayAssociaLes, a Califoinia General Part.nership ("Kaiser") andLessee were part.ies Lo a written Net Commercial lrease datedNovember 14, 1989 (hereinafter referred t,o as t,he "OriginalLease"), under the terms of which Kaiser agreed to lease toIressee and Lessee agreed to lease from Kaiser certain premises(hereinafter referred to as the t'Origina! Premises") l-ocated inLessorrs building known as Gateway Corporale Center locaLed aLL2720 Galeway Driwe, Suite 100, Seattle, Washington (the"Building"); and

WHEREAS, Lhe Originalconsisted of aPProximat,elYusable square feet) on theBuilding,' and

WHEREAS, Kaiser and Lessee enLered into a First AmendmenL LoLease (the I'First AmendmenL") dated Aprit L6, 1990 which adjustedthe rental raLe set forLh in the Original Lease and provided forcerLain days of free renL; and

WHEREAS, Kaiser and Lessee entered into a Second Amendmentto Lease dated Augusl 17, 1994 (the "second Amendment"), whichamongi other thingi, increased the size of the leased premises to30, 316 square f eet (the 'tExisting Premises" ) ; and

WHEREAS, Kaiser Lransferred its interesL ín the OriginalLease as amended by the First. Amendment and SecOnd Amendment(saíd. Original Lease, First Amendment and Second Amendmenthereinafter collectively call-ed the 'tLeaset') to Gateway CorporateProperties L. L. C. ( ttGateway" ) by Assígnment dated December 1-995 ;and

WHEREAS, GaLeway transferred its interest in the Lease toLessor by Assignment dated NIay 26, L999 ¡ and

WHEREAS, Lhe parties desire Lo amend the Lease relative toan expansion of 7,857 rentable square feet and 7308 usable squarefeet (the "Expansion Areat') as shown on ExhibiC rtArr atLachedhereto, thereby yíeldíng a ne$/ premj-ses of 38,173 rentable squarefeet (Lhe rtLeased Premises'r)

NOw, THEREFORE, in consideraLion of the mutua] covenanlsherein contained, and other good and valuable consideraLion, it.

Premises, as described in the Lease,25,093 rentable sguare feet (25,093first and second level of the

1


is covenanLed ano agreed. beL\À/een t.he parties that t.he aforesaidLease be modified ancl amended Lo read as follows:

1-. Incorpotîzlion of necitaf s

The above recit.als are hereby incorporated herein.

2. Expansion Area ImprovemenLs.

Lessor, aL its expense, will make improvements t'o LheExpansion Area in st,rict accord with plans, specifj-cations andwori< lett.er attachec¡ to t,his Third Amendment as Exhibit rrBrr andthe specifications aLLached to the Original Lease as Exhibit rtcrr

as moäified by any changes to those specifications included inExhibit. rrBrr tõ tfrJ-s Third Amendment (the "Expansion AreaImprovementst') which willinclude, wiLhout limitation, ceilíngs,*ails, doors, lighting, electrical work, plumbing, heaLing, aifconditioning and, venLiLation, and floor coverings. The.ExpansionArea Improvements wiLl include the same materials and will be ofa qualiiy and quanlity as good or better than those existing inthe* Sxisling Piemises, and the Expansion Area as built andmodified acóording to Lhe pIans, will comply wíth all applicablelaws, ordinances, rules, Codes, and regnrlatiOnS Of governmentalauthorities. Any improvements reguired to bring the ExpansionArea into compliance with ADA requirements in effect as of thedaLe of t.his Amendment. and any state or l-ocaI laws, rules orregulations similar to or effectuating t.he ADA requirements willbe made by Landlord aL tandlord's exclusive cost, excepg LhatTenant sfrãtf be responsible for such cost,s that arise solelybecause of TenanL's specific use of the Expansion Area as aneducational facility. Lessor will provide Lessee with copies ofall construction bids for the Expansion Area Improvements priorto commencing construction of any Expansion Area Tmprovements.Lessee must wiChin seven (7) days of receipt of same, prior toLessorts acceptance thereof/ approve or reject in writing eachsuch const.ruction bid. Notwithstanding Lessee's approval of anysuch construction bid, the amounE at.tributable to the ExpansíonArea Improvement,s paid for by Lessor and paid for by Lessee (ifany) wí1f: (a) be the actual cost, Lo construct. the Expansion Areatmþrovements; and (b) no| exceed t.he construction bid amountapþroved by Lessee, including any change orders approved bylãssee. AIf consLruct.ion will be done in a good workmanl j-kemanner usíng maLeriafs in accordance wit.h the plans and will noLvary in any substantial manner without Lessee's prior wriLt,enconèent. f¿ is specifícally understood t.hat the Expansion AreaImprovemenLs shall include a fire sprinkler system for theExpansion Area.

3. Possession of Exnansion Area

On or about .Tanuary 1, 2000, Lessor shall deliver LheExpansion Area to Lessee subject, holvever, to the LessortsoOligation Lo make the Expansion Area Improvements as seL fort.hin pãragraph 2 af t.his Third Amendment. Lessor shall be deemed tohave delivered possession of Che Expansion Area to Lessee on Lhe

a


date the Expansion Area sha1l be substantially complete.asdefined in Seciion 4 of this Third .AmendmenL and a Certificate ofOccupancy or the equivalent thereof shall have been delivered toiã""ä" (ãucn Aãie öf A.finery hereinafter caLled the "ExpansionDate" ) . Lessor shall deliver- t.he Expansion Area with allfacilities and systems in good operaEing condition for Lesseers;;.. including, Ëut not limiteA Èo, the air conditioning,ñããii"g, f ighËing, water supply, and. sewage systems. .

I'Operating;;;ãití;fr, rr-*'rn-respect to-äir conditioning and healing, willinclude balancing, bùt lessor will only be required at such Lime'to balance the systems necessary for the current season' Duringåny period that i.sse" shall be- permit.teg Lo enter the Expansi-onÀiå*-prior to Lhe Expansion Date other t,han to occupy the same

tá.g., to perform allerations or improvements) , Lessee sha1lòð*Ëfy wit-h all terrns, and provisions of the L,ease, except thoseproîiêions requiring paymenl of Expansion- Ä,rea Rent. If Lesseeshall enter tiie UxpãnËion Area prior to the Expansion Date forfurà p.trpose of occüpying the same, Expansion Area Rent sha1lcommence on such date-

4. Substant.ial Completion.

For purposes of this Third Amendment, substantialcompletion äfrait mean the occurrence of all of the following:

a. Lessee can use the Leased. Premises for it's intendedprrrpo""" without material inLerference Lo Lessee conducting itsã.ãi"ir:' business activities and the only incompleLe items areminor oi insubstant,ial details of construction or mechanicaladjusLments -

b- Issuance of permanenL cerLificates of occupancy for theLeased Premises, conLaining no provisions for work to becompleted prior to the effectiveness of the certificates.woti,virhstaãaing Lhe precedíng, if Lhe City of Tukwila does notissue a Certificate õf Occupancy upon the complet.ion of LesseeimprovemenL work, Lhen the executíon of the final signed offinËpection records wiLl suffice.

c. Lessor }ras cleaned the Expansion Area and otherwíserendered. it in new and reasonably unbtemished condit,ion,excluding anything caused by Lessee, its agenLs, servanLs,contractõrs,-invitees, or employees. This work wilI include,without limitation, the following:

(1) all t.ile floors wet mopped,buffed;

sealed waxed, and

(2) all wa1ls and partitions cleaned and all damagedplaces fí1Ied and touched uP,'

all glass cleaned on both sides;

all Lrash, dirt. and leftover materi-als removedfrom t.he Leased Premises, excluding anythingcaused by Lessee; and

3

(3)

(4)


(s) all ceramic tí1e work inst'aIled as parL of theExpansi-on Area Improvements buffed and the groutsealed.

5. Effect. of Delays in Completion.

If substant,ial completion of Ehe work as defined inSection 4 of this Third Amend.ment is not achieved by March 1-5,

2000 (tne "penalty DaLe"), LeSSee sha1l receive one day'sabatement of Base Rent appticable to the Ëxpansion Area for eachad.diLional d.ay of delay beyond March 15, 2000 to the extenL thatiÀ""ot fails:- (i) to si,bstäntíally complete any Expansign AreaImprÕvements requi-red to be complète¿ PV T'essor and deliver a

Certificate of Occupancy or the equivalènt thereof as provided inSåction ¿ (b) hrerein to iessee, or (ii) to deliver possession ofiñ. U*prnsion Area for any other reason, including buL notlimiteä to hold.ing over by prior occupanLs, except Lo the extent;h;¿ Lessee, its õontractor, agen¡s or employees in any waycontribute to either such failure, (i.€., Lessee no| approvì-ngspace plans and,/or build-out documents in a timely fashion' )

lässoI: shalt not be responsible for delays caused by changes lothe \,úork made by LesSee or LeSSeers contractors, ag'enls oråmpfoyees or deiays that are a direct result of events that are¡"y"rã Landlord's conLrol, such aS sUrikeS, lockouts, shortagesin material, Tenant's acts, acts of God or the effect ofto.r.rn*.ntai action or inaction. The Penalty Date will-beãxtended by one day for each day beyond october 15, !999, thatt.he Third. Àmendmenl is executed by Tenant and returned toLandlord.

7 . Cost of Expansion Ärea fmprovements '

The Expansion Area Improvements for the Expansion Areaas shown on the þlans will be provided by Lessor at it.s sole costand expense, excèpt that Lessoi will not be required to expendnore that Twenty ãollars ($20.00) per renLable square foot

4

6. Inspections .and Warranties.

Before the Expansion Date, the parties will inspect theExpansion Area, have al 1 systems demonstrated, and prepare apuircfrf isC. The punchlist wtf f include: (i) incompleLe, minor,ãnd insubstantial ¿eCails of consLrucLion, and (ii) necessary*ã"frã"i""f adjustments. Lessor will complet.e the.punchlist items*ltf.in thirty (30) days afLer the date bhe punchlist. is presentedLo Lessor. Lessor (ai shall require a1I conLractors performingiwork on Lhe Expansion Area Lo warrant their work against defectsin maLerials aãd workmanship for a period of one year afLercompletion of the work and (b) sha11 ex|end the same one-year*ariatrty to Lessee. Nothing Set forth herein shall act as anassignmänt by Landlord of añy v,Tarranty ríghts it may have withrespãct to the Expansion Area Improvements except aS necessary Loeffêctuate the one-year warranty given Lo Tenant'


($L57,140 t.otaI, said sYm-hereil, t3l1:9^:l" "Expansi'on Area

Improvements efío*ãtr".") for such Expansion Area Improvements'

If Lhe cost. t." -lfrà iessor of the nxpänsion Area Improvements

exceeds T\^ren.t!' ãóff.t= ($20-Oói-per'rentable square fooL' the

amount of such ;;ã;;;-*iir ¡ã neiq bv r'essee tõ Lessor withinrhirt.y (30) Oryã--ãrtãr-substã"ii"f cämpletion of the Expansion

Area. The n"äã"ãiã" at"u Improvements Allowance will cover

Lessorrs const;uction costs' þermit fees. and charg'es'

archiLecls' , engineers' an¿ o-tf'ãr consulting and prof essíonalfees, a super-rïËiã"Zconstruciiott/managementT overhead/profít fee

nor Lo exceed';-;;;;i-;i five percent-(5?) of the subcontracLors

tota1 charges, v[ashington statä sales Lax incurred in connection

with the design and cónstruction of the Expansíon'Arearmprovemenrs,'rrtiät ;iïI-,iãõi"¿., without iimítaLion' ceilings'wafls, d.oors, iiõirËi"ã, eteã¿ricä1 work, plumbing, heating, aircondirioning ;å=;;;;íí"aiã;; itoot coverì'nss, and bathrooms'

Any portrion of the Expansion Area Improvemeñts Àllowance t'hat isnor required lo-äã*pläte- t¡rã e"p.""iän Area Improvements may be

utitized by tãnant Lo make ã*tàl improvements ãnd upgrades to the

Leased pr"*isãã-iã"i.roi"g, buL not limited to, the HVAC

rmprovemenLs ãã*ãii¡"d iñ Séction r3 of this Third Amendment '

B. Rent.

CommencingontheExpansion-Date,theterm-''PremiSes'',as used i_n crrã'-iãäË", shalI-üã-ããàme¿ ro be expanded to includerhe 7,g57 r"r.Ëu¡lã-"quãt. feet of the Expansioñ Area and shall :,'iLor.al 38,173 rentable square. Thereafter,-;"¡jãçt to th; :*:tu Çifu.*,i''cost reimbursã*ãÃi ptovisions set f orth in Seccion 11 or ttre u/'tÈt,'

Second emendmãnt--ttñ" ,fixeá Cãst provisions"), all other charges '" i uþ(orher rhan rñã-uririries pãrãenrage) for addirional renr due c'y*.^.qll'under the Leaãã an¿ Tenantl s Pro nãta Percentage -shall be 9t\\'computed usint-:gtl73 rentable square feet. The fixed amount as ¡'

',..::¿*Ë;ïh-i;'Érr" ¡'i*ed Cost pio'"isions shall be adjusted 9" 3 E:o .;çp ;'*

rara basis ro"ïãriãäã-rrr" increase in reniãure sq,ráre .f eer. upon {1,, ,-'''

said Expansion DaLe, the renL for the n*pãtti:'ott 'dr"a (the ri"r'

-5,:t*Êrn"ãÏil"ä;ii"*::::':i-î:Ëïãí .:?'ï'iiäT.oi'å? if,.'n" þs-.Å:'

original 1,""=ã-å" amended úy-tüf " ii.it¿ Amendment ' f p,i{>4:ii

9. Term.

TheTermoftheLeaseassetfort,hinSubsectionof Art.icle A "i-iit" Lease shall be amended from sixty (60)

;; ä;h;;Il trãl -vãars (2L6 monrhs) . Accordinsly, the

Termination Date ãf the Lease will be March 31' 2008 '

l-0 . BCfj-U-arf orVanse.

During t'he year 2003, Lessor will agree to make non-

scructural ,.pãírã ánâ :-*provements ro that portion of_thepremises that. ;;;-iããr"ããã in Lhe Lease as oi August !1 ' L994 ' up

to a cosL oe tån-oãli"t" ($10'00) per renLable square foot for a

coral of $¡O:,iãO- (th; 'ìe.fit Al'oin¡ance"). The Refit AllowanceshalL cover ttre same t.ypes ói

"rr.rg'es and cosLs as provided in

section 7 herein wirh rèspect t.o cñe Expansíon Area rmprovementsAllowance. After Lessor and Lessee agree upon the finar prans

5

1.04 (b)months


for such repairs and improvements, Le$sor will make such repairsand improvements to the Premises up t,o t,he amount of the RefitAllowance. Land.lord's approval of TenanL's Plan will not' be

unreasonably wit,hheld. If the actl:al cost of such repairs and

improvements exceeds t.he Refit Allowance, then SuCh excess cost;;ãti be paid ny r,."".e to Lessor within thirty (30) davs afLersubstantial ."ãþfãtiãn ot the improwements. Lessee agrees to be

;;i;iy tiable fär and. pay for all such repairs and improvemenlsLo t.he exLent t.he cost exceeds the Ref it Àllowance. The Ref ítAllowancemusEbeusedbyTenant'duringtheyear2003.

11. Parkinq.

The number of reserved parking st'alls identified inSection l- of the Addendum to the Lease sha1l be increased from220 Lo 25! upon notice from Lessee t'hat t'he number of vehiclesãp.r"CuO by èmployees, sluden¿s, and visitors, consistentlyexceed two hundred Lwenty. Lessor reserves the right ço provideitre a¿Aitionai iftitty-ott" (31) spaces referenced in this SecLionif off-site. Lessee agrees to cõoperate with Lessor with thecollection of iiiCet aãa impfemenLãtion of regrrlat'ions relatingto the areas reserved fOr IrãSseerS use/ Such aS the reservedparking area and student smoking patio.

_ Lessee will have t'he

garbage around Lessee's parking-area picked up Monday LhroughÉriAa|. Tn addition, Lessee wlfl provide alt employees and

"trra.ttt* wit.h either bumper stickeis Or rear view mirror tags

lirãt id.entify the car as being af f íliated with Lessee.

!2. Other Chanqes Lo l,ease.

These changes seL forth above shall be reflecLed by thefollowing changes to t,he Ï-,ease which changes shaIl be effectiveon the ExPansion DaLe:

a. section 1.1 of Articl-e A of t,he Lease is hereby- its ent.irety and the following subst.iLuted in Iieudeleted int.hereof :

"AIvIB Instituuíonal Alliance Fund I, L' P'Gateway CorPorate ParkBox 846103Da11as, fexas 75284-6L03"

b. Sect.ion 1 .2 of Article A of the Leasein its ent.irety and the foll-owing substit'uted

ItLes sor : AMB Instit.utional Alliance Fund T,c/o R. J. HallisseY Co., Inc.L2720 GaLeway Drive, SuiEe 105Seattle, Washington 98168Facsimile Number : 206-24t-2t9r

is herebyin lieudelet.ed

thereof:L. P

ITT Educat.ional Services, Inc.5g75 Castle Creek Parkway, North DriveP.O. Box 50466Indianapolis, Tndiana 4625A-O466tl

6

Les see


Subsection 1.3 (B)in its entiretY and

of Article A of the Lease is herebYthe following substituted ín lieudeleted

thereof:

" (B) Leased Premises:Suites L00 and 2OLrl

d. Subsection L'3 (c) of ArticLe A ofhereby deleb.ed in its entirety and t.he folIowínglieu thereof:

t.he Lease issubstituted in

" (C)

f . Ef f eceive as of t'heL.5(A) of Articte A of the Lease isfollowing:

ExpansionArea

(7 ,857sq. ft.. )

ApproxímaLeRent.able:

Square Feet:38,173"

e. subsection l-.4 (B) of Article A of the Lease ishereby deleted in its ent.irety and the following substituted inIíeu Lhereof : ''

" (B) Eighteen (18) years (2L6 months) "

Expansion DaLe, Subsection \,häreby amended bY ad'ding the ¡

Exist,ingPremises(30,3L6

Tot,alBase MonthlYRent for Leased

Premises(38,1"73sq. ft. )gcf - ft)

"Expansion Date Lhroughand includíng March 3J-,2AA'J"April 3-, 2001 throughand including March 31,2003 3April L, 200+ Ehroughand including March' 31-,2005April L, 2OO5 throughand including March 31,2008

$L2 .50 psf $ 9 .56 Psf $32, 353 . 3 B

$l-2 .50 psf $1-2 .50 Psf $39, 763 .54

$1-3 .50 psf $13 . s0 Psf ç42 ' 944 - 63

$1-4 .25 psf $la .2s Psf $45, 33 O .44u

Sect,ion 1-.8 of Article A of the Lease is herebyentirety and the following substituted in "l'ieu

!ürTlÅ[t ('-

*

delet edthereof

, g.in its

"Pro Rata Percentage:Utilities Percentage:

6L.26 z73.5L ?n

h. sections 7.0 and 7.1- of t,he second Amendmentr Lo

Lease are hereby delet,ed in their enLirecy'

7


deletesrL^-aa€.

d.hereby delet.edlieu thereof:

" (c)

hereby deletedlieu thereof:

'ÌExpansion Ðate throughand including March 31,200rApril L, 200L throughand including March 3l-,2Oo3 3April I, 200+and including2005April L, 2005and including2008

g.del-eLed ín itsthereof:

Approximate Square FeeL:Rentabl-e: 38,173rr

Subsection l-.4(B) of Àrt.icle A of the Lease isin it.s enti-rety and the following substituted in

subsect,ion 1.3(B) of Article À of the Lease is herebyin it,s ent.irety and t,he following substituted in lieu

'(B) Leased Premises:Suites 100 and 201r'

Subsection L.3(C) of Article A of the Lease isin it.s entirety and the following substituted in

u (B) Eighteen (18) years (21-6 months)"

f . Ef feccive as of t,he Expansion Date, Subsection1.5 (A) of Article A of the L,ease is hereby amended by adding t,hefollowing:

ExpansionArea

(7 ,857scr. ft.)

rrPro Rata PercenLage:ULilit.ies Percentage :

so. fr_-)

6L.26 t73 .51 zil

ExistingPremises(30,31-6

TotalBase MonthlyRent for Leased

Premises(38,173ss. ft. L

$1-2 .50 psf $ 9.56 Psf $32, 353 .38

$l-2 .50 psf $12 . s0 psf $39, 763 .54throughMarch 31,

throughMarch 3l-,

$13.50 psf $L3.s0 psf ç42,944.63

$14 . 25 psf $14 . 25 Psf $45 , 33 0 .44'l

Section l-.8 of Àrticle A of the Lease is herebyent.irety and the following substitut.ed in lieu

h. Sections 7.0 and 7.1 of the Second Amendment LoLease are hereby deleted in their entiret'y.

7


1Ä,rt.icle 45:

The following is hereby added Eo the Lease as

llñ*rìn1 a ÃE^*+-

i nn þn Elv{-an¡{ ¡l¡a rFaøo

Provided that Lessee is not in default' of any of¡he provisions of t.his Lease, I-,essee shal1 have the righL LoexLe;ld. Lhe term thereof for one additional' period of five (5)years, which sha11 be for the period of April 1-, 2008 t.hroughilarch 31, 2OL3 (the "Opt.ion Termrr) upon the same Lerms andcondilions as staLed herein, except for Minimum Monthly RenL.Minimum Mont.hly RenL for the Option Term shall be at Lhe FairMarkeC kent.al Rate. Lessee musL exercise ifs option to extend, ifat all, by written not.ificaLion (the "NoLice of Exercise") toLessor noe later than April L, 2007.n

For the purpose of this Lease, t.he term t'FairMarket Rental Rate" sha1l mean Lhe annual amount per rentable

"qnur" fooL that ot.her Lessors in the Renton/fukwi1la/South

Séattle area have accept.ed in the recent past from othercomparable, non-affiliãted., non-expansion and non-equíty, renewaltenãnLs for comparable space and for a similar renewal term. TheLessor shall nol be required to offer any inducemenLs (including,buL not limited to, frée or deferred ren[, Lenant improvementallowances or refurbishmenL allowances) ,' prowided, that thedefinition of Fair Market RentaL Rate will be corrected to Lakeinto account those inducements which are being offered to oLhercomparable renewal- LenanLs.

Lessor shal1 determine Lhe Fair Market Rent'al Rateby using its good faith judgement. If the Lessee exercises theOþtion i.o Uxtend as set iorth above, Èhen Lessor shall províde*?itten noLice of the Lessorrs determination of the particularFaj-r Market Rental Rate to Lessee within Lhirt.y (30) days afterLessor's receipt. of the Notice of Exercise. Lessee shal-} havethirty (30) days (the rrLesseers Revi-ew Period) after receipt ofl,esso-r's notice of the new rental raLe within which to acceptsuch rental rate or to reasonably object thereto in wrifing. Inthe event LeSSee objects, Lessor and Lessee shall attempt toagree upon such Fair MarkeL RenLal Rate, using their best goodfãitfi efforts. ff Lessor and Lessee fail Eo reach agreementwithin t.hirty (30) days following Lessee's Review Period (the"Outside Agrèement Date"), then such determination shall besubmitted. to arbitraLion in accordance wit,h t.he arbitrationprocedures seL forLh befow:

(a) Within ten (10) days after the OutsideAgreement Dat.e each party sha1l nominate an arbitrator and shallaãvise the other of the name and address of such arbitrator. Thetwo arbitralors so appointed shall attempt to determine the FairMarket Renta1 RaEe within thirty (30) days of the appointment ofthe last of the two arbi-trators and in the event that Fair MarketRenLal- Rates determj-ned by the two arbit.rators differs by lessLhan Ten Percenl (10?), Lhen t.he two Fair Market Rental Ratesshall be averaged together and the average shall be t.he FairMarket Rental Rate for the particular Extension Period. If,however, t.he two Fair Markel Rental Rates determined by the two

tt


arbitrators differs by more t.han Ten PercenL (10?) t'hen t'he Lwo

arbitrators, wíttrin tirree (3) h'¡siness days of the expiration of;h¿ said rhirty (30) day period shall appoint, a third arbitrator'Neither Lessor'not Lessäe- shall consult witfr such thirdarbit,rator as Lo his or her opinion a to Fair Market Rental RaLe

;;i;r ro ¡,he appoinLmen¡. _tire Aetermination of Lhe thirdãrbitragor si:ai-l be limi¡ed solely to the issue of a

ããt.r*inat.ion õi the Fair Market Rental Rate for the Premises,;;kirg into account Lhe requirements of this provision-regardi-ngsame. Such third arbitrator may hold such hearings and requiresuch briefs as the third arbitrãLor, in his or her solediscretion, d.etermines is necessary. In additíon, Lessor ori,ã==." *.y "rrb*it.

Lo the third arbitrator, with a copy to theother party, withln five (5) business days after appointment ofirrã-tirird ãrbitrator any market data and- additional informationt.ha¡ such p"riy-r"a"on.Ëly deems relevant to the determination ofFair MarkeL Be-ntal Rate (I'FMRR DaLa"), and the oLher party may

".rn*it a reply in writing wit.h five (5) business days afterreceipt of such FMRR Ðata.

(b) The t.hird arbitrator shaIl, within Lhirtyhis or her appointment, reach a decision as to the

Rental Rate, àna shall notify Lessor and Lessee

(c) The Fair MarkeL Rental Rate of t'he thirdarbitrator snali be averaged with the closest of the two FairMarket Rental Rates develðped by the two other arbitrators andthat average shall be the fair l¿arket Rental Rate for thepart.icular Extension Period and' shall be binding upon Lessor andLessee.

(d) If Lessor and Lessee fail to agree.upon andappoint an arbitrator, then the appointment of the arbiLraLorshall be made'nV tft. iresiding ,fuãäe of the Kíng County.Superiorõã"it o.', if he-or she refuseé to act, by any judge havingjurisdiction over the Parties.

(e) The cost of arbitration shall be paid byLessor and Lessee equa11Y.

(f) Atl arbitrators shall be MAI appraasersLo practice in the State of Washington and sha1l havethaä five (5) years' appraisal experience in t.he King

Washington, area.

(30) days ofFair Marketthereof.

licensednot lessCounty,

l-3 . Temporarv Use of Mobile Classrooms '

Tenant shall be entitled to place mobile classroomsany Lwo of the chree locations marked rr1'r, ttztt and rt3rr on thesile plan attached hereto as Exhibit trcrr . Tenant shaIl beenLiEled to utitize these two mobile classrooms (Lhe "MobileClassrooms") until the date that is one (1) month after therxpansion Date/ aL \^Ihich t.ime Tenant shall remove the MobileClãssrooms from the Gat.eway Corporat,e Center. The coSL ofprocuring, permitting, inslalling, operat.ing and removing the

ô

at


Mobile classrooms shall be borne by Tenant, and any such costsincurred fy r,andiord. sha11 be reimËursed by Tenant. . . Tenant wi11,aE its sole cost and expense, repai-r any_damage to the property;;";¿a by its use or removal of t,he mobile classroom.

L4. Hgatinq and Air Conditioníng ImproveEents '

Landlordagireeslomakeadd.itionalupgrades.tothehearing u"A ãii-ãã"ãítioning system serving the Existing Premises;;-õ;;Ërally described in tñe iecommend.ations and proposalaLLáched as Exhibit O t,o t.his Third Amendment (the "I{VAC;;p;;;.[*rrt""). The cosL of the IIVAC Improvements sira1l be borneby TenanE provided, however, that (a) l,andlord agrees to minimizetÍr. "o"t o-t the IrVAC Improvements whenever possible byãoðrAinating these HVAC Improvemen¡s with changes made to thehã;;il;-ãttã-"ii condiLíoniñg syst'em ?9 part of the Expansion AreaImprovements and (b) in no ãveirt shall Lhe cost to Tenant for theHVAC Improvements exceed ç27,995 plus lrlashington staLe sales tax'wiCrrit irritty (30) days of completion of the HVAS ImprovemenLs,iãndlor¿ snait'complele a fu11 accounting of all costs associatedwith HVAC lmprovemènts takíng inCo consideration the amount oflñã n*p"nsioã Area Improvement. Allowance, if any, that was

afpf ie'a to, t.he cosL oi the HVAC Improvements and presenL Lo

Tenant an rnvoice for Lhe costs of the HVAC ImprovemenEs as

;;;tã"á herein. Tenant shal-l have thirty (30) d'ays from receipt'ãi-srrcfr invoice to make pa]¡ment, Lo Landlord. After said HVAC

ImprovemenLs are completä,-Landlord will continue to maintain andpr-ovid.e anr* necessary repairs Lo Èhe HVAC system, at Landlord'S-exclusive èost, Lhrougtrout Lhe remaining Term of the Lease '

l-5. SLaLus of Improvements upon Termination'

Upon t,ermination of the Lease, Lessee shal1 noL berequired to remove or pay for the removal of.any imp':ovemenLs Lo

thå premises exist.ing ãn-the dat.e of this Third AmendmenL,auLhorized by this tñir¿ Amendment or authorized in the future byLessor.

1,6. ReaI Estatq-Brokers.

Lessor and LeSsee each represent and \¡iarrant to theother part.y that it. has not aut.horized or employed, or acted byimpt-icätioã to authorize or employ, any real esLate broker orsalesman to act for ít in connection with Ehis Third Amendment.Lessor and Lessee shall each indemnify, defend and hold the otherp;;¿y harmless from and against any and a1t claj-ms by any realãst.L" broker or salesman whom the indemnifying party authorizedor employed, or acLed by irnplicaLion Lo authorj-ze or employ, toact fär Lfte it¿emnifying paity in connection with thj-s ThirdAmendmenE.

10


1,1 . Reaf firmation

Except as sPecificallanrl condiUions of the Lease shaeffect.

amended herein, all of the t,errns1 conLinue in full force and

vI

18. Successors and Assigns

This Third Amendment shall be binding u.pon and inure tothe benefit of the partj-es hereto and their Successors andassigns.

ofthe

l-9. Conf lictsIn case of any conflict between any t.erm or provision

t.his Third Amendment and the Lease, t.he terrn or provision ofThird Amendment shaIl govern.

2A. Counterparts

This Third Amendment may be executed in one or morecounterparts, each of which shall be deemed an original, buL allof whicñ when taken togel.her shall consLiLute one agreement.

2J.. ExecuÞion

This Third Amendment shall not be bínding, unless it.signed by both parties and an originally signed counterpart ísdelivered Lo Lessee by October 29, 1999.

IÐ

IN WTTNESS WHEREOF, and intending to be legalIy bound, theparties hereto have caused this THIRD AMENÐMENT TO LEASE to beäigne¿ and sealed the day and year first above writLen.

l-1


LESSOR:

ÀIÍB INSTITTIÎIONAL ATTI.à}TCE F1'¡[D

L. P

irfr!ß

fi.eJ'

ìlr,

TirtDate o

LESSEE:

ITT EDUCATIONAL SERVICES/ INC.

By:

?rw s ,Åe-, *

W{*j'*

Tit le :

Date:

STATE)SS

COTINTY

I, the ofthe State of do hereby

that personally known to me to be theof AMB Institutional Alliance Fund I, L.P

to the foregoing19

that helshe, being thereunto dulY

authorized, signed, and delivered the said instrument as the free and voluntary act as such

ofÏîcers thereof, for the uses and purposes therein set forth.

IN WITNESS \ /HEREOF, I have hereunto sub my name and my

official

oNotary c

of Residence:@

DONNARODRIGUECornmission # 11991n

Nolqry Public - CqlilsnbSon Froncïsco Comly

¡,ty comrn. Eetres l\lw ô 2m2

My

L2

County

ls a4


STATE OF Indiana -)COI-INTY OF Mav ,^¿ ì

SS

I, thecertify that

otary Public, of the State or ìÚAd tû¡A, do herebypersonally known to me to be theof ITT Educational Services, Inc., a

name is subscribed to the foregoing instrument, appearedq1 in person and

Delaware corporatiolL whosebefore me thii Zfifiday of l9severally acknowledged that he, being thereunto duly authorized, signed, and delivered

the said instrument as the free and voluntary act as such officers thereof, for the uses and

purposes therein set forth.

IN WITNESS WHEREOF, I have hereunto subscribed my name and affrxed my

offrcial seal.

My Commission Expires:

Notary Public

County ofResidenc.e:

2ôÒ-l qVLüJu.ú]t-

fi:\Fague\Lers6\Sertd¿ (Thùd Anìendment to Leõe).doc

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EXHIBTT A


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EXHIBIT B

WORK LETTER

This Work Letter is in addition to the terms and conditions set forth in and is made apart

of this Third Amendment.

1. Plan for the Premises.

(") Lessor and Lessee have agfeed to a space plan ("Space Plan") for

installation of the Expansion Area Improvements in the Expansion Atea, a copy of which

Space plan is included in this Exhibit B. The "Expansion Area Improvements" are set

fórtn on the Space Plan, and include a floor plan of the Expansion Area Improvements

including locations of walls, doors, electrical outlets, telephone outlets, and any other detail

required-for completion of Working Drawings by Landlord's Architect.

(b) Within fifteen (15) days after the execution of the Lease, Lessor

shall cause its'architect ("Architect") to coordinate the preparation of final working

drawings and specifications ("Working Drawings") for the Tenant Improvements in the

premisãs based on the Space Plan. All Working Drawings shall be prepared by Landlord's

Architect, which Working Drawings shall include, as required, architectural, mechanical,

electrical and structural engineering drawings for installation of the Tenant Improvements

in the Premises in accordance with the Space Plan.

(c) The Working Drawings shall be reviewed by Lessor a¡d Lessee for

compliance witÀ the Space Plan. They also shall be submitted by Lessor to the appropriate

governmental body for plan checking and a building permit. Lessor shall make any changes

in the Working Diawings required to obtain the building permit. Lessee shall have frve (5)

business days from its receipt of the Working Drawings to approve the Working Drawings

in writing. L".s"" shall be deemed to have approved the Working Drawings if T..essor fails

to receivé a reply or approval of the Working Drawings within those five (5) business days.

2. Construction of Tenant Improvements.

After the Working Drawings have been prepared and approved, and a

building permit for the Tenant Improvements has been issued, Lessor shall enter into a

construction contract with its contractor for the installation of Tenant Improvements in

accordance with the Working Drawings and this Third Amendment. Lessor shall supervise

the completion of such work.

C:$ap.!år6$êatrlc (fr¡bit B Work Latã) doc


EXHIBIT C


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EXHIBIT D


t-g;TH -,ru.-J ^ :.::13í:...':.J'¡ñsu¡wÉr ee

IIE LÌl ' INL . ¡ ¿L . ¿' vr r r'vcv\:

SEATTLE N'¡ECHAIIIGAL, IIIC.Phons (2sg) 93()-f)4sti . Fax: (2SS¡ 939-e628

Lrrrylcs M¡rch I9r Il!99Proci¡lon f,uiHcr¡

RE¡ Drsff rÐmmcnda¡ion¡ fsr no.lificâli(trs lo thc À(l systsr¡ at l1l.

Dcarlrrry:

Below årE nv dr¡fr ¡ecmmcrrd¡lions for adcqulrtr:lr t:nolitrg thc fot¡r firgt floor cll$trooms al l'l"f :

o lnßr¡lt four 4-fdn rplit htrr pwftp ryrtcnrx. (¡t¡(: lbr cflch clss$foofi¡, cnch wilh its orvnprogrtmmrbls thcrft¡os0s¡.

r ßc¡now thorÊ ñ¡r foorins from tha Drrin ...vrlcnr $4rish Sclves ùc ¡tst of tbe buildírrg, th¡rchymaling thtm indepcndant hc¡t¡og/c.oling, rrtncs.

r (bmpøralc for tl¡c let of this s¡ucc scwrxl by thc mnin sy$e.n by adju*ing thc st¡¡tt-tiruc fi¡'thcFt$m ¡acbaurÊr ro s¡Í eúlicr in thc q¡¡ann cyclt: uurl rsducc ïuilding ¡ncssurization.

o l¡¡sfal] tha air handlcr¡ o\rcf ttË lr¿ìlway jn$ rnrtridc rhc ol¡csn¡or¡¡S in ordçr to ascurc lhcy nrc

accessiÞle for servicÍng ôring hor¡s th¡t ulrusr:s urt: i¡¡ .scado¡l

r To reducc ¡roi¡c !n ù¡e l¡rltway fion¡ tho aír hsndft.'rs, if deerneal ncceîsÊry afìcr instsllalion, eilherirsul¿to lhs tilcs bclo¡, tñc air lnndler¡ o lr:¡rlnc.e tìrr-' t ilcs witb supcr.insulatod tílcs.

o In¡¡alì 5tW of frip lrcating oapacity in cafh, 'l'his rvill pnwide hr if noc¡tsl iD thc wcrrl tlrcrcüns Ðcnvcft to c u'3 otl€Û than oomFrtct' rd¡ts$ics irr the future,

r Utílizc the a¡irrilry gl¡pply d¡¡ctworl rhøt prcst:rfl]' !i'¿ds Ùlosæ n¡ornr¡ Add two ¡dditiond rr¡ns ûo üp rooms, givin¡: riroh rrr(rn ¡ tot¿l of rix supply duo{s ¡ñd difl'uscn-r lncreæ lbc rct¡¡rn duc?worlc *ize and grilh: rirr'.o Run lhe reftig¡rsnt lincc thmugh ûc pùonr: g,¿cù\virr- roon which is locs¡cd i¡r thc hallway ¡ncl is

opposite rlrc clasç¡oomsie In¡t¡ll one ø¡rdeî$le pr¡mp fË air ln¡xlk':r. 'l'it: ¡¡ll filut pumps into a comntôtì dnin line ttr

dirchargc into tbo &sin jn thc utitíty c'lonct '¡t rhc ct¡rJ (rfthc hsllu,By.

r Or¡tdmi ¡ir for rxch room ûo bc stpplierJ bV irrst¡ltirr¡1 a ó" dua into rho rctur¡ ducls ol'sach and

running tlrrsr¡gù ûrc ot¡teidc r¡all to t louvcrcrql intnkc urp. The ca¡ro shouid bo ¡nintcd tr.r n¡ûtth

the ousidc ofü¡c buildiogis ælor.¡ DJ EtcctriC !o n¿ffoí¡r tlrc gloctriCal for tlrr, r'orr<k:nsing units, Eir hmdlcn a¡¡d CondcznsåtË Pumps

undcf ¡Êpt¡Êlc e{rrlt?rt with Prccision Buildc¡i,, Insr¡llation of all four systans to bs donc tlur irt¡.. li¡ir ing bræk ¡rcriod 8t thc end of r\pil an<J th:

f¡Ét ußÊk ofM*Y.plee*c roview ¡¡d c¡tl ¡ng widr any Chargcs yot¡ \'or¡¡d likc to See msde bsf0rc I fineliz¡ fhis irrto bid

fonn. Thanlg,l.ttty.

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8tl9 Weül Meln Stfeót 'A¡¡lltttt. W¡¡shtnglon'gSO01

T9:R J HALLIS9Ey PROII:286 s39 962Ae9-82-99 C9:52 PO2


F'OURTII AMENDMENT TO LEASE

THIS FOURTH AMENDMENT, dated this 26th day of February, 2007, between RREEF AMERICA REIT IICORP. MMMMT WASHINGI'ON, a Maryland corporation ("Landlord") and ITT EDIIC,{IIONAL SERVICËS, INC., a

Delaware colporation ("Tenant"), for the premises located in the City of Tukwila, County of King, State of Washington,

commonly known as Gateway Corporate Center, Buildrng Seven, 12720 Gateway Drive, Suite 100 (the "Premises" as

described and outlined on Exhibit A).

WITNESSETII;

WHEREAS, Landlord's predecessor AMB Institutional Alliance Fund I, L.P., a Delaware limited partnership and

Tenant, entered into lhat certain Lease dated November 14ü', 1989 as amended by First Amendment to Lease dated April16, lgg1, as amended by Second Amendment to Lease dated August 17,7994 and as a¡nended by Third Amendment to

Lease dated October 20,1999 (hereinafter collectively referred to as the "Lease"); and

\ryHEREAS, Landlord and Tenant desire to amend the Lease as more fully set fofih below.

NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein and other good

and valuable consideration, the receipt and sufficiency ofwhich is hereby acknowledged, the parties agre€ as follows:

Definitions. Unless otherwise specif,rcally set fbrth herein, all capitalized terms herein shall have the same meaning as

set forth in the Lease.

A. PREMISES DOWNSIZE:

1. PREMISES REDUCTION IN SIZE: Effective 12:01 a,m. on Thursday March 15,2007, the Premises shall be

reduced in size from approximately 38,173 rentable square feet to 33,119 rentable and usable square feet; snch

Premises is shown and outlined on 1he attached Bxhibit B. The rent shall be as follows:

Period Rentable SquareFootage

Est. Annual RentPer Square F'oot

Actual ÂnnualRent

Actual MonthlyInstallment of Rentfrom throush

3/1s12007 3t3112008 33,1 t9 81,4.25 $471,948.00 $39,329.00

2. BIIILDING: "Buildìng" is defined as Gateway Corporate Center, Building Seven, consisting of approximately

62,161 rentable square feet.

3. TENA|{T'S PROPORTIONATE SHARE: Effective March 15, 2007, Tenatt's pro-rata share of the

Building shall be decreased to 50,06yo and Tenant's pro-rata share of the Complex shall be decreased to 7 .64%.

4. REAL ESTATE TAXES: Effective March 15, 2007, Real Estate Tax expense shall be reduced ftom61.26o/o

of Building's pro-rata share to 50.06%.

5. INSURANCE: For puposes of Article 14 of the Lease, effective March 15, 2007 ,Insurance expense shall be

reduced ftom 61.26%o of Buildiag's pro-rata share to 50.06%. Insurance expense was previously a component ofthe CAMs.

6. UTILITIES: Effective March 15, 2007,Tenant shall pay 63.18% of Building's charges for electricity, natural

gas, n'ater/sewer charges (excluding inigation expenses), and garbage/recycling service expenses.

7. PARKING: The number of reserved parking stalls identified in Section 1 1 of the Third Amendment to Lease

shall be amended such that effective at the time of the Premises Reduction in Size, Landlord is to provide 182

reserved parking stalls û'om 7:00 a.m. to 5:00 p.m. on regular business days. During all other days and times,

Page 1 of 10


Tenant may utilize any and all of ttre 292 total stâlls on-síte, so long as Tenant cooperates with the needs and

demands of other tenants in the Building who also possess rights to the park after hours.

8. LANDLORD WORK: As a part of the Premises Reduction in Size, Landlord shall, prior to March 31,200'7,

demise the dov¿rsize area with improvements as outlined on Exhibit B-1, in a form and fashion consistent with'I'enant's current fînishes and specifications in the Leased Premises. In addition to the demise of the downsize area,

Landlord shall, and shall not fail to, place all controls for HVAC systems aflecting the Premises within the

downsized Premises and shall ensure such HVAC systems are adequate to maintain the downsized Premises at

68"-74o F drybulb temperature in winter with relative humidity range within 10 to 60% and 73"-75" F drybulb

temperature in summer with relative humidiry range within 20 to 65Yo.

B. RENE\ryAL: Pursuant t'o A¡ticle 1.4 atd Article 4 of the Lease, the TenrL as formerþ amended from time to time,

shall be extended for a period of sixty (60) months commencing April 1, 2008 and terminating March 31,2013.

1. RENT SCHEDULE: The Rent schedule for the Extended Lease Term shall be as follows:

Period Rentable Square

Footase

trht. Annual RentPer Square Foot

Actual AnnualRent

ActualMonthlyInstall¡rrcnt of Rentfrom throush

4/t/2008 ra3tDñ8 33.1 l9 $0.00 $0.00 $0.00

Iv2009 3/31/2009 33,1 19 $14.28 v72,944.00 $39.412.00

4/U20W 3/3v2010 33,1 t9 $14.70 $486,8s2.00 M0,s71.004/U2An 3/3t/20t1 33,t19 $1 5.1 5 $s01.7s6.00 $41.813.00

4/1/2011 3/31/2012 33.1 19 $1s.60 $516,660.00 $43.0s5.00

4/1/2012 3/31/2013 33,119 $16.06 $53i.888.00 w.324.N

2. SECURITY DEPOSIT: Landlord currently holds Zero Dollars and No/100 ($0.00) as Security Deposit. No

additional Security Deposit is required at this time.

3. COMMON ARE.A. MAINTENANCE CHARGES ICAMì: Excluding electricity, natural gas,

garbagehecycling service, watef/sewefo charges and any services currently coffracted byTenant, the CAM expense

beginning January 1,2008 shall be $2.10 per square footperyear, and this shall be fixed through and including

March 31,2013.

4. TEMPORARY USE OF MOBIITE CLASSROOMS: Pursuant to Section 13 of the Third Amendment to

Lease, Tenant shall no longer be entitlcd to place mobile classrooms at any location at the Building or Gateway

Corporate Center upon final execution of this Fourth Amendment to Lease.

5, RENT PAYMENT: Section 12,a. of the Third Amendment to Lease is hereby deleted in its entirety and the

following shall be effective upon final execution of this Fourth Amendment to Lease.

RREEF AMERICAREIT II CORP. MMMMT WASHINGTONGateway Corporate Center75 Remiuance Drive, Suite 6920Chicago, IL 60675-6920

6. NOTICE ADDRESS: Section 12,b. of the Third Amendment to Lease is hereby deleted in its entirefy and the

following shall be effective upon final execution of this Fourth Amendment to læase.

Lessor: Gateway Corporate Centerc/o RREEF Management Company16000 Christensen Road, Suite 101'fukwila, WA 98188

Page 2 of 10


Lessee ITT Educational Services, Inc.13000 N. Meridian StreetCarmel, IN 46032Attn: Director of Real Estate

?. CANCELLATION OF RIGHT OF FIRST OFFER: Any and all Right of First OfÏers or Rights of First

Refusals for Tenant to expand within the Building are null and void.

8. CANCELLATION OF OPTION TO EXTEND: The Option to Extend as outlined in Section 12, Article 45,

Other Changes to the Lease, of the Third Amendment to Lease is hereby null and void.

9. OPTIOI\TO RENE\ry: Tenant shall, provided the Lease is in fi¡ll force and effect and Tenant is not in default

under any of the other terms and conditions of the Lease at the time of notification or coÍìmencement, have one (l)option to renew this læase for a tenn offive (5) years, for the portion ofthe Premises being leased by Tenant as ofthe date the renewal term is to commenÇe, on the same terms and conditions set forth in the Lease, except as

modified by the terms, covenailts and conditions as set forth below:

a. If Tenant elects to exercise said option, then Tenant shall provide Landlord with written notice no earlier

than the date which is three hundred sixty (360) days prior to the expiration of the then current term of the

Lease but no later than the date which is one hundred eighty (180) days prior to the expiration ofthe then

current tenn ofthis Lease. IfTenant fails to provide such notice, Tenant shall have no further or additional

right to extend or renew the term ofthe Lease.

b. The A¡nual Rent and Monthly Installment for the 5 year Option to Renew shall be:

Period Rentable SquareFoot¿se

Est. Annual RentPer Sauare Foot

Actual AnnualRent

Actual MonthlyInsfallment of Rentfrom throush

4/t/2013 3/31/2014 33,1 19 $ 1 6.46 $545, r 3ó.00 $45.428.00

4t1/2014 3 rl5 33.1 1 9 $ r 6.87 $558,720.00 $4ó.560.00

4/1 t20t 5 3/311'21 16 33.1 19 st7.29 $s72,628.00 $47.719.00

4/1/2016 3/31/2017 33.1 I I s1'7.73 $587,1 96.00 $48.933.00

4/l t2017 18 33.1t9 $ 18.17 $601 ,77 6.A0 $s0.148.00

c. This option is not ftansferable; the parties hereto acknowledge and agree that they intend that the aforesaid

option to renew this Lease shall be "personal" to Tenant as set forth above and that in no event will any

assignee or sutrlessee have any rights to exercise the aforesaid option to renew.

d. Upon exercise of the renewal option Tenant shall have no further right to extend the term of the Lease.

10. TI ALLOWANCE: Landlord shall provide Tenant with a $331,190 allowance to be used any time between

ii¿ar"tt t S, ZOO i and March 3l , 2012 for pre-approved real property improvements within the Premises which are

mutually agreed upon. Work must be completed by March 31, 20i2. Real property improvements include, but are

oot limited to, the following examples: Floor coverings, wall paint, ceiling tiles, millwork refurbishment, fresystems upgrades, wall additions or removals, etc. fenant Improvement Allowance shall not be used for chattel

such as white boards, black boards, audio visual equipment, wall partitions, new built-in desks, new millwork,

furniture, etc. Any or all portions of the Tenant Improvement Allowance which are not used by March 31,2012

shali not be credit back to Tenant in any form. Thc Tenant Improvement Allowance may be used in multiple

projects. Landlord shall reimburse Tenant within thirty (30) days ofLandlord's receipt ofinvoices from Tenant forwork performed relating to such improvements.

Page3 of10


C. Miscellaneous:

1. TþnaBt,s Authorily (oFACl If Tenant signs æ a corporation, partnership, trust or other legal entity each of

@nbeha1fofTenan1representsandwarrantsthatTenanthasbeenandisqualifiedto do business in the state in which the Building is located, that the entity has fulI right and authority to enter into

ifri, l"ur", and that all persons signing on Uettatt of the entity were authorized to do so by appropriate actions'

Tenant agrees to deliver to Landloid, simultaneously v¡ith the delivery of this Lease, a corporate resolution, proof

ofdue arithorization by partners, opinion ofcounsei or other appropriate documentation reasonably acceptable to

Landlord evidencing the due authorization of Tenant to onter into this [æase'

2. patriot Àct. Tenant hereby represents and warrants that neither Tenant, nor any persons or entities holding any

legal or beneficial interest whatsoàver in Tenant, are (i) the target ofany sanctions program that is established by

Executive Order of the President or published by the Office of Foreign Assets Control, U.S. Department of the

Treasury (',OFAC,'); (ii) designated by the Presiâent or OFAC pursuant to the Trading with the Enemy Act, 50

U.S.C. App. g 5, the tnternatiJnal Emergency Economic Powers Act, 50 U.S.C' $$ 1701-06, the Patriot Act, Public

faw fO7-i6,'Executive Ordçr l32}4lSeptemUer 23, 2A0l) or any Executive Order of the President issued

pursuant to such statutes; or (iii) named ôn the following list that is published by OFAC: "List of Specially

besignated Nationals and-Blocled Persons." If the foregoing representation is untrue at any time during the Term,

an Eíent of Default will be deemed to have occurred, without the necessity of notice to Tenant.

3. Incorporation. Except as modified herein, all other terms and conditions of the Lease befween the parties

"b""" d"*ttb"d/s attached hereto, shall continue in full force and effect.

4. Limitation of Landtord's Liabilitv. Redress for any claim against Landlord under this Fourth Amendment

and the Lease shall ¡" ti*iæ¿ to *¿ enforceable only against and to the extent of Landlord's interest in the

Building, insurance proceeds and rent proceeds. The obligations of Landlord under this Amendment and the Lease

are notLtended to be and shall not bå personally binding on, nor shall any resort be had to the private properties

of, any of its or its investment manager's irustees, directors, ofFtcers, partners, beneficiaries' members,

stockholders, employees, or agents'

S. $ignase Replacement. Tenant shall, and hereby is, petmitted to replace any existing signage with

;*ñ-"bñig""g" -d rn "

manner consistent with the tèrms of the Lease, as amended, and in compliance with all

applicable stalutes, codes and ordinances, and with the prior consent of Landlord, which conscnt shall not be

unreasonably withheld or delayed.

6. Brokers. Tenant and Landlord warrant that neither has retained or used the services of a broker with respect

õ tffitttt Amendment, and no commission shall be due to any third parry. The party who breaches this

-"*À,V shall defend, hold harmless and indemniff the non-breaching parfy from all costs' expenses' and/or

liability arising from the breach.

j, BÍndine on Successors. This Lease is binding on, and inures to the benefit of, the parties' respective heirs,

successors, representatives, and permitted assigns'

g. Lienholder Consent. Landlord represents and warrants to Tenant that, to the extent Landlord is obligated to

obtain consenf to this ¡ãîttn Amendment &om any lienholder holding a security intercst in the Lease, Complex or

Building, Landlord has obtained said consent and will forward a copy of said consent to Tenant within thirty (30)

days foúowing Landlord's execution of this Fourth Amendment, if applicable.

g. Conflicts. In case of any conflict betwecn any tenn or provision of_this Fourth Amendment and the I-ease, as

p*ti,r"t1f*ended, the term or provision of this Fourth Amendment shall govern'

10. Reaffirmation. Except as specifically amended in this Fourth Amendment, all terms and conditions of the

L*r", ur pr""io"rly amended, are unmodified, are hereby reaffirmed, and shall remain in full force and effect'

Page4 of 10


11. Counterparts. This Fourth Amendment may be executed in one or more counterparts, each of which

counterparts shall for all purposes be deemed an original, but all such counterparts together will constitute only one

instrument.

12. Execution Deadline. This F'ourth Amendment will not be binding, unless signed by both parties and an

originally signed counterpart is delivered to Tenant by February 28,2007.

IN WITNESS WHER-EOF, Landlord and Tenant have executed this Fourth Amendment as of the day and year

first written above.

LANDLORD:

RREEF AMERICAREIT II CORP. MMMMT1VASHINGTON,

a Maryland corporation

By: RREEF

TENAI\T:

ITT EDUCATIONAL SERVICES, INC.,

a Delaware corporation

By:

Name:

Title:

Dated:

By:

Andrew llarnish, CCIM Name:

Tirle:

Dated:

District Manager"ä"ï4ryâ -àÅ -Ò7

Page 5 of 10


STATE OF

COI.]NTY OF

On this

CORP ORATE ACKNOWL.EDGMENT

WASHINGTON ))

KING )

,JldL¿u, or T{,ill'l¡l^/t'l'14 , 2007 before me, the undersigned, a Notary Public in and for the

State of WASHINGTON personally appeared ANDREW HARNISH, to be lnovm or shown through satisfactory evidence

to be the DISTRICT MANAGER of RREEF MANAGEMENT COMPANY, aDelaware corporation, and acknowledged to

me that HE executed the same on behalf of said corporation freely and voluntarily for the uses and purposes therein

mentioned.

Witness my hand and official seal the day and year in certificate first above written.

Ss.

. ,a\q.\Tlt ì. .

-s ...\Í,¡AL'r4Ê?',,*"

ik"T':;;:'$'' iit;;:*..''f ry,'"}" rflir'{{Y

'(1i'ã *J :*A ;.å,/ .ë i ',i! ,:?, '.Õ- * ,r+rr"' ,(l j Ð t:

\ 1: r,.,#'*r tt$'f'd, ,- *¡]!,'v-.- ,:i) .iii" (''}; *... ";:: Í.;;:, *Þ*' "í''lt. '-f¡-Ë ¡aç \il' ;r:''tâ. ¡r Vt-'s ùlo-rxrn r x{{"

J, WAITARNotary Public in and for the

St¿teof WASHINGTONresiding at KING COLINTYMy commission expires: May 29, 2007

CORPORATE ACKNOWLEDGMENT

Indiana personally aPpeared to be known or shown through satisfactory

evidence to be the f¡|/Sidøl q êOO "f ITT Educational Services, lnc., and acknowledged to me that

HE executed the same on behalf of said corporation &eely and voluntarily for the uses and purposes therein mentioned,

Witness my hand and official seal the day and year in this above written.

N in and for the

State Indianaresiding atMy coiltltussron

STATE OF INDiANA )

COUNTYOFHAMILTON , )

On this y'{nAu, of February, 2007 before me, the undersigned, a Notary Public in and for the State of

Page 6 of 10


EXHIBIT A- F'LOORPLÄN DEPICTING TI{E PRXMISES

attach€d to and made a part of this Amendment bearing theReference Date of December 4,2006 between

RREEFAMERICAREIT II CORP. MMMMT WASHINGTON,a Maryland corporation, as Landlord and

ITT EDUCATION SERYICES, INC., a l)elaware corporation' as Tenant

Premises Äddress: 12720 Gúeway Driveo Suite 100

Approximate Square Footage of Premises before March 15' 2007:38'173 sq. ft.

Exhibit A is intended only to show the general layout of the Premises prior to March 15, 2007. It does not in any way

supersede any of Landlord's rights set forth in Article 17 of the Lease with respoct to arrangements and/or locations ofpublic parts of the Building and changes in such arrangements and/or locations. It is not to be scaled; any measuremeuts ordistances shown should be taken as approximate.

First Floor Seeond Floor

Page 7 of 10


EXHIBIT A-1- SITE PLAN

attach€d to and made a part of this Amendment bearing the

Reference Date of Decemb er 4, 2006 between

RREEF AMERICA REIT II CORP. MMMMT WASIIINGTON'a Maryland corporation, as Landlord and

ITT EDUCATIONAL SERVICES, INC., a Delaware corporation, as Tenant

Premises Address: 12720 Gateway Drive, Suite 100

Approximate Square f,'ootage of Premises: 33'119 sq. ft.

Exhibit A-1 is intended only to show the general location of the Premises as of the beginning of the Term of this

Amendment. It does not in any way supersede any of Landlord's rights set forth in Article 17 of the Lease with respect to

arrangements and/or locations of public parts of the Building and changes in such arrangements and/or locations. It is not to

be scaled; any measurements or distances shown should be taken as approximate.

Le¿sedPremises

t{Drive

I$

lntærurþan Ave. $a

rE

L ,i

\

5

I

Page 8 of l0


EXHIBIT B - PREMISES REDUCTION IN SIZE

attached to and made a part of this Amendment bearing theReference Date of December 4, 2006 between

RREEF AMERICAREIT II CORP. MMMMT WASHINGTON,a Maryland corporationo as Landlord and


Exhibit A is intended only to show the general layout of the Premises as of the beginning of the Term of this Amendment. Itdoes not in any way supersede any of Landlord's rights set forth in Article 17 of the Lease wilh respect to anangements

and/or locations ofpublic parts ofthe Building and changes in such affangements and/or locations. It is not to be scaled;

any measurements or distances shovm should be taken as approximate.

Second Floor:Area to bedownsized

*

Page 9 of 10


EXHIBIT 8.1 _ LANDLORD'S IMPROVEMENTS

attached to rnd made a part of this Amendment bearing the

Reference Date of December 4,2006 betweenRREEF' Á.MERICA REIT II CORP. MMMMT WASHINGTON'

a Maryland corporation, as Landlord and


Exhibit A is intended only to show tlre general layout of the Prernises as of the beginning of the Term of this Amendment' It

does not in any way supersede any of Landlord's rights set forth in Article 17 of the Lease with respect to arrangements

and/or locations of p"bíic parts of the Building and changes in such aÍangements and/or locations. It is not to be scaled;

any measurements or distances shown should be taken as approximate.

Demise downsizearea from ITTPremises.

*Square offa

corner

r Install ADA door.e Install any ADA signage at this

door at Tenantos request.

f

ê

Page 10 of l0


FIFTH AMD¡IDMENT TO LEASE

THIS FIFTH AMBNDMENT TO LEASB, dated as of the Fifth Amendment Date (defined in Section 20

below), ís entered into by and between RREEF AMERICA REIT II CORP, MMMMT WASHINGTON, a

Marland corpomtion ("Landlord"), and ITT EDUCATIONAL SERVICBS, INC., a Delawarccorporation ("Tenant").

RECITALS

A. Kaiser Gateway Associates ("Kaiser") and Tenant entered into that certain Triple NetOffice Lease dated November 14, 1989, as amended by that certain First Amendment to Lease

Agreement dated April 16, 1990 and that certain Second Arnendment to Lease dated August 17,1994.AMB Institutional Alliance Fund.I, L.P. ("AMB'), as successor in interest to l(aiser, and Tenant entet'ed

into that certain Third Amendment to Lease between dated October 20, 1999, and Landlotd, as successor

in intercst to AMB, and Tenant entered into that celtain Fourth Amendment to Lease dated

Febnrary 26, 2007. The Triple Net Office Lease, as amended, is collectively rofen'ed to hetin as thettLease.tt

B. The Lease pertains to approximately 33,119 rentable square feet of oflice area, looated in

Building 7 of Gateway Corporate Center, having an address of 1272A Gateway Dlive South, Suite 100,

Tukwila, Ifing County, Washington 98168 (the'?r'emisos"), as mol'o fiilly described in the Lease,

C. Landlord and Tenant desilo to reduce the square footage of the Plemises, extend the term

of the Lcase, change the Rent Schedule, and othetwise amend the Lease as mote fully set forth below.

AMBNDMENT

NO'W, T!{EREFORE, in oonsideration of the mutual covenants and conditions contained herBin and

other good and valuable oonsideration, the receipt and sufficiency ofwhich is hereby acknowledged, tho

parties agree as follows:

Definitions. Unless otherwise speoifioally set forth herein, all capitalized torms used shall have

the rneanings attlibuted to them in the Lease.

2. Landlord's Address. Landlord's Notice Address is hereby changed to the following:

Gateway Cotporate Center

c/o CBRE, Inc. lAsset Services

20415 - 72nd Avenue South, Suite 210Kent, $y'ashington 98032

3. Reduction in Area of the Premises. Commencing on Jnne 1,2012, the Premises shall be

reduced in size from approximately 33,1 19 rentable square feet to 27,782 rentable square feet, as

shown on Exhibit A attached hereto (which shall supersede and rcplace Exhibit B to the FouÉhAmendment to Lease). Nothwithstanding tho fotegoing, until such time that Landlord conshuctsa door allowing passage from the Premises to the building elevator lobby (as shown on Exhibit Battached hereto), any students or employees of Tonant with a disability or need for elevator

1.

-l-


access to the sccond floor shall have the right to pass through the Reduction Area (as shown on

Exhibit A) in order to access the building elevator'

4, Tenantts Proportionate Share of Taxes, Insurance and Utilities; Common Area

Maintenance Charges.

(a) Taxes and Insuralce. Effective June l, 2A12, Tenanf's Propottionate Share of the

Building (having a total square footage of 62,167 rentable squale feet) shall ba 44.69Yo,

which shall be used for the purposes of determining the Tenant's charges for Real Estate

Taxes and lnsumnce costs,

(b) Utilities. Effective June 1, 2012,Tenant's Proportionate Share of the Building's charges

for electricity, nattrml gas, \ryat€r and sewer (excluding irtigtion expenses) and

garbagebecycling selvice expenses shall be 53.30%.

Cplnmon Area Maintgnance Charges, In addition to the amounts due frnm Tenant under

Sections 4(a) and 4(b) above, Tenant shall pay to Landlord, on a monthly basis at the

same t¡me and in the same manner as the Monthly Installment of Rent is payable,

common area maintenance charges in the amount of Four Thousand Eight Hundred

Sixty-two Dollars ($4,362.00), Such amount shall remain fixed through December 31,

2013. Commencing on January L,2074 and on the first day of each year thereafter

through the Termination Date (as revised below), the amouut due for Cotnmon Al'ea

Maintenance Charges shall increase by three percent (3.0%\'

(c)

Term. The Term of this Lease currently expires on March 31,2013, and is heroby extended fora period of five (5) years and two (2) rnonths, commencing on April 1, 2013 and tet'minating on

May 31, 2018 (the "Tennination Date").

5.

6. Rent Schedule. The Rent Sohedule for the period from June 1, 2012 tlu'orrgh May 31, 2018 shall

be as follows:

Payment of Expenses dudng Rent Abatement Period. Tenant is required to make the

payments required under Section 4 above during any period that the Monthly InstalLnent of Rent

is abated pursuant to the preceding Rent Schedule.

Tenant Improvernents; Tenant fmprovement Allowance. Landlold shall contribute One

Hundred Thirty-Eight Thousand Nine Hundred Ten Dollars ($138,910.00) (the "Tenant

7

8.

Period Rentable Souare Annual Rent Annu¡l Rent Monthlv Instrllmentfrom throush Footase Per Squaro l'oot of Rent

6lu20t2 9t3012012 27,782 $0.00 $0.00 $0.00*

t0ltl20t2 sl3l/2013 27,782 $ r4.00 $388.944.00 s32.412.00

6lv20t3 st3uzat4 27,782 sl4.42 $400.620.00 $33.385-00

6lt/2014 sl3t/20t5 27,782 $ 14.85 s412.632.00 $34.386.00

6ilt2015 5l3tl20l6 27.782 $ r s.30 $425.016.00 $3s.418.00

6/u20r6 st3u20t7 27-782 $ 1s,76 $437.760.00 $36"480.00

6lU2017 sl3t/2018 27 -782 $16.23 $450.900,00 $37.575.00

-2-


Improvement Allowance") toward the cost making general off¡ce and classroom area

irnprovements to tle Premises (the t'Tenant Improvements").

In connection with any Tenant Imprcvements that Tenant desires to make, Tenant shall be

responsible for the design and development of fïnal layout plans and speoifications for the

Premises ("Tenant Lnprovement Plans"). If Landlord reasonably determines that Tenant is

required to obtain a building peunit for construction of the Tenant únprovements, then the

Tonant Improvement Plans shall be in a form aoceptable to, and containing all infonnation

required by, the Department of Comrnunity Development for the City of Tukwila. If Landlordreasonably determines that the Tenant Improvoments Plans require review by a structutal

engineer, then Tenant shall be responsible for engaging a structtual engineer to review and

apprcve the Tenant Improvement Plans.

Landlord hereby approves the Tenant Improvernent Plans set fofilt o¡r Exhibit B attached hereto.

In the event that Tenant should make any changes to the Tenant Improvement Plans, Tenant shall

submit to Landlord two (2) copies of the lBvised Tenant Improvement Plans. Landlord shall

either approve or dísapprove of the levised Tenant Improvement Plans within ten (10) days and,

if approved, rcturn a signed, approved copy to Tenant. Landlotd's approval shall not be

nmeasonably withheld or delayed. In the event that the tevised Tcnant Lnpt'ovement Plans are

not approved by Landlord, Landlord shall inform Tenant ofthe reasons for such disapproval and

Tenant shall have fìve (5) business days in which to submit further revised Tenant hnprovement

Plans to Landlord for Landlord's apptoval, which approval shall not be unreasonably wittrheld ordelayed. Tenant shall not unreasonably refi¡ss to satisff any objections made by Landlord to said

Tenant Improvement Plans. Any objections Tenant has to Landlord's objection shall be

sub¡nitted to Landlord in writing within five (5) business days, A failure of one party to give any

notice to the other party within such five (5) business day period shall be deemed to constitute

approval oftho Tenant hnplovement Plans or the objections thereto, as appropriate.

Tenant rnay enter into a contract for consh'uction of the Tenant Improvernents with a geneml

contractor that has been approved by Landlord; Landlord shall not unrcasonably withhold itsconsent with lespect to any such contractors. Within five (5) businoss days of doing so (but in any

case prior to the conttactor commencing any wolk), Tenant shall provide Landlord with a copy ofthe executed contract for construction of the Tenant Imprcvements. The contractors and

subcontractols retained shall be licenscd and bonded comrnercial contractors and subcontraotors.

Tenant shall provide to Landlord such evidence of insurance with respect to the work to be

conducted on the Plemises by the contlactols and suboontraotols as Landlord may reasonably

requfue. The installation and performance of the Tenant Imprnvements to be made on thePremises shall bc done in a workmanlike manner consistent with other construction ancl

installations in the Building and in conformþ with all applioable governmental laws, ordinances,

rules, orders, regulations, and other rcquirements.

Landlord or Landlord's agents shall have the right to inspect the Tenant Improvement work beingconducted by Tenant during the progress theleof. If Landlord or Landlord's agents shall givenotice of faulty installation or workmanship, then Tenant agrees to cause its contlactors orsubcontractors to make reasonable cou'ections promptþ. However, neither the privilege hereingranted to Landlord or its agents to make inspections, nor the making of such inspeotions by

3


9.

Landlord or Landlo¡.d's agents, shall operate as a waiver of any right of Landlord to require

workmanlike construction and installation of all imprcvements.

Tenant shall be solely responsible for the installation and petfotmance of the Tenant

Improvements and for all costs of the Tenant Improvements that are in excess of the Tenant

Improvement Allowance, and in no event shall the Tenant Improvement Allowance be used to

pay any costs of procuring or installing in the Premises any tmde fixtures, equipment, furniture,

furnishings or other personal property to bc used in the Premises by Tonant. The cost of such

items shall be paid for by Tenant. The Tenant Improvement Allowance shall be paid to Tenant

within thirty (30) days following (i) receipt by Landlord of Tenant's reguest therefor, (ii) the

expiration ofthe period for fiiing ofrnechanic's liens or upon presentation to Landlord ofdulyexecuted unconditional lien waivers from all contmctors, sttbconttactors and materialmen who

have performed work or suppliod materials on behalf of Tenant at tho Premises, and (iii) receipt

of evidenco of payment, or if Tenant has not proviously made payment, then Landlord may

disburse the Tenant hnprovement Allowance, or any pottion thereof, by checks payable jointly to

Tenant and its contmotors and/orvendors.

Option to Extenrl Term. Tenant and Landlord are entering into this Fifth Amendment in lieu ofTenant exercising the option to extend the term set forth in Section 9 of the Fou¡th Amendtnent,

which option to renew shall be of no ftltther force or effect.

Provided that (i) this Lease is in full force and effect, (ii) Tenant is not in default under any ofthematerial terms and conditions of this Lease either as of the exerpise of its option to extend the

Lease Term or the comlnencement of the Bxtension Term (defined below), Tenant shall have one

(1) option to extend tha Term of this Lease for a period of five (5) years (the "Extension Telm"),for the Premises on the same terms and conditions set forth in this Lease, except as modified bythe terms, covenants and conditions set fotth below:

(a) If Tenant elects to exercise such option, then Tenant shall provide Landlord with writtennotice no earlier than the date whioh is twelve (12) months prior to the Termination Dateof this Lease, but no later than 5:00 pm PacifÏc Time on the date which is nine (9)

months prior to the Tennination Date of this Lease. If Tenant fails to provide such

notice, Tenant shall have no further or additional right to extend the tel'm ofthis Lease.

(b) The Annual Rent iu effect at the expiration of the then cuffent term of this Loase shall be

changed to rcflcct the current fair market rental (including any market rate concessions

and allowances applicable to loase extensions, if any) for comparable space in the

Building and in other similar buildings in the same rental rnarket as of the date the

Extension Tenn is to commence, taking into account the specific provisions of the Lease

which will remain constant, and the Building amenities, location, identity, qualþ, age,

conditions, term of lease, tenant improvements, services provided, broker commissionsand other pertinent items.

(c) Landlord shall advise Tenant of its determination of the new Annual Rent for thePrernises and a market rate improvernent allowance (if any) for the Extension Term,which will be based on Laudlord's detennination of fair market rental valne, no later'

than thirty (30) days after receipt ofnotice ofTenant's exercise of its option to extend

4


(d)

the Term of the Lease. Tenant shall have fifteen (15) days aftor receipt of such

notification fi'om Landlotd to accept the now Annual Rent and improvoment allowance(if any) or to reject Landlord's proposal and inform Landlord of Tenant's determinationof fair market rcntal value; Tenant shall provide Landlold w¡itten notioe of such

accoptance or alternate determination of fair market rental value within such fifteen (15)day period. If Tenant rejects Landlord's proposal, then the partios shall nogotiate ingood faith for a period of up to thitty (30) days after the day that Tenant provides its

written notice of rejection (ttre "Negotiation Pedod") to reaoh an agreoment as to thenew Annual Rent and improvement allowance (if any) to be applioable during theExtension Term.

If Landlord and Tenant are unable during the Negotiation Period to reach an agrcemcntas to the fair market rental value to be applicable during the Extension Term, then thefollowing provisions shall apply:

Landlord and Tenant shall each hire an appraiser to determine the prevailing marketrental rate. The appraisals shall be completed and exchanged withín foty-five (45) daysafter the end ofthe Negotiation Peliod, Ifthe appraisal values are less than or equal toten percont (l}Yo) apaft, they shall be averaged to determine the prevailing market rentalrate. If the two appraisal values are gteater than ten percent (10%) apart, thc twoappraisers shall choose a third applaiser, and suoh third appraiser shall provide his or heropinion as to the fait market rental value within forly-five (45) days of the thirdappraiser's selection. The thee appraisal values shall then be averaged to determine thefair market rental value. The detennination of the fair market rental vahle by eaoh

appraiser shall take into account all rclevant factors, including allowances, operatingêxpenses, brokomge cornmissions and other applicable factors. Landlord and Tenantshall pay the fees of their respectivc appraisers and share equally the fees of the thirdappraiser if necessary. All applaisers must be MAI certified, Iicensed in the St¿te ofWashington, and have no less than frve (5) years' experience appraising commercial realostate in the groater Puget Sound area.

Upon determination of the terms applicable during the Extension Telm, the paúies shallexecute a lease amendment reflecting the folegoing terms and oonditions, prior to thecornmencemont of the Extension Term, reflecting tho new tems,

The exercise by Tenant ofits option to extend shallbe ilrevocable. The option to extendis not transferable; tlre parties hereto acknowledge and agree that they intend that theoption to extend this Lease under this Section to be "personal" to the specific Tenantnamed in this Lease, and that in no event will any assignee have any rights to exercisesuch option to extend (unless expressly agreed otherwise in connection with a specificassignment of this Lease).

(e)

(Ð

-5


I0.

11.

13.

L4.

15.

12

Partring. Section 7 of lhe Fourth Amendment to Lease (as well as Section I I of the ThitdArnendment to Lease and Section I of the Addendum to Lease) is deleted, and the followingparagraph is hereby substituted in its place:

Parlring. Commencing June 1, Z\l2,Landlord shall provide Tenant with 153

reserved parking spaces fi'orn 7:00 a.m. to 5:00 p.m. on regular business days,marked for use by Tenant and its employees, agents and invitees, Tenant agreesto cooperate with Landlold in connection with the colleotion of litter andimplementation of regrlations lelating to the parking areas reselved for Tenant'suse, and will have the garbage around Tonaut's parking area picked up dail¡Monday through Friday. Outside the hours stated above on regular bnsiness

days, Tenant and its ernployees, agents and invitees may use all of the on-sitoparking stalls, so long as Tenant cooperates with the needs and demands of othortonants in the Building who also possess rights to after-hours parking; ptovided,however; that between the hours of 5:30 p.rn. and l1:30 p.m., Tenant shall have

the use ofno less than two hundred eight (208) palking spaces.

Effect of Amendment; fncorporation. Except as expressly nodified herein, all tems andconditions oftho Lease ternain in full force and effect aud ate hereby ratifïed and confinned.

Brokers. Baoh party reptesents and wan'ants to the other that othq than Flinn Ferguson

Commeroial Real Estate ("Tenant's Bloker") and CBRE, Inc. ("Landlord's Btoker"), no broker,agent or finder negotiated or was insb'umental in negotiating or consuurmating this Þ'ifthAmendment. Each party further agrees to defend, indernnify and hold hannless the other partyfiom and against any claim for commission or findel"s fee by any entity other than Tenant'sBroker or Landlord's Broker who claims or alleges that it is entitled to a oommission based onthe açts of the indemni$,ing party. Landlord shall be responsible for the payment of thecolnmission to Tenant's Broker and the commission to Landlord's Broker per a separateag1'eement.

Successors and Assigns. This Fifth Arnendment shall be binding upon and inure to the benefitofthe pafties hereto and theil snccessors and assigns.

Conflicts. In case of any conflict between any tenn or provision of this Fifth Amendment andthe Lease, the term ol provision of this Fifth Amendment shall govern.

Consents. Landlotd reprcsents to and for the benefit ofTenant that to the extent any consent ofa lienholder or any other party is requiled with regard to the exeoution of this Fifth Amendmentor the perfolmance oflandlord's obligations hereunder, Landlord has obtained such consent.

Dntire Agreement, This Fifth Arnendment constitutes the entire agreement between the partieshereto with regard to the subject matter hereof, and except for the urunodified portions of theLeasq snpersedes all prior agreements and understandings, whether oral or written, between theparties with respect to tho subject matter hercof.

16.

-6-


18.

T7, Counterparts. This Fifth Amendment may be exeouted in one or more countetpads, each ofwhich shall for all purposes be deemed to be an original, but all such counterpatts together willoonstitute only one instrument.

Severability. Should any provision of this Fifth Amendment be held invalid or illegal, such

íllegality or invalidþ shall not invalidate the whole of this Fifth Amendtnont. In such an event,

thirFifth Amendment shall be oonstrued as if it did not contain the illegal part and the rights and

obligations ofthe parties shall be construed and enforced accordingly.

Amendment. No provision of this Fifth Amendment shall be amended, modified, waived,

changecl, terminated, or rescinded, except by a writing sign by an authorized offlicial of eaoh

pafty heroto.

Effectiveness, Date, The date this Fifth Amendment is signed by the last parly to sigr it (as

indioated by the date assooiated with that palty's siguature) will be deemed the Fifth Arnendment

Date. Notwithstanding anything herein to the contraty, this Fifth Amendment will not be

bipding, unless sigued by both parties and an originally signed oounterpatt is delivered to Tenant

by May 31,2012.

IN \ryITI\-DSS \üHERIOF, Landlord and Tenant have executed this Fifth Amendment as of the FiftltArnendment Date.

LA.IIiDLORD¡ TENANT:

t9,

20.

RRBEF AMERICAREITtr CORP. MMMMTWASHINGTON, a Maryland corporation

rTT EDUCATIONAL SERVICES, INC.,a Delaware corpomtion

By:Kevin and CEO

// /¿*

I!By:

Cathleen Meyer,

lfiç/ tz-

7


STATE OF \¡/ASHINGTON )) ss.

couNTY OFKTNG )

On this -WOu, of Ma¡ 2Ll2,beîoreme, the underuigned, a Notary Publio in and for theState of Washington, personally appeared CATHLEEN MEYE& to me known or shown throughsatisfactory evidence to be the VICE PRBSIDENT of RREEF AMERICA REIT tr CORP. MMMMTWASHINGTON, a Maryland corporation, and aoknowledged to me that she executed the same on behalfof said corporation fieely and voluntalily fot the uses and purposes therein mentioned.

'Witness my hand and offioial scal tho day and year in this certificate fir'st above witten,

HOLLANDPublio in and for the State of

Washington, residing at IütsapMy commission expires:

-8-


CORPORATE ACKNOWLEDGMENT

STATE OF INDIANA

COTINTY OF HAMILTON

On this _|[+l^ day of May,2ll|before mq the undersigned, a Notary Public in and for theState of Indiana, personally appearcd KEVIN MODANY, to me known or shown tårough satisfactoryevidence to be the Chairman and CEO of ITT BDUCATIONAL SERVICES, INC,, a Delawarecorporation, and acknowledged to me that he executed the same on behalf of said oorporation freely andvoluntarily for the uses and purposes therein mentioned.

Witness my hand and offìcial seal the day and year in this certifïcate fust above written.

tsEALl

r\od,u L. Fãriu¿(Pleæe printiname legibþ) rJ

NotaryPublic in and for the State "f

ind¡rfr"+Mycommission expires: 4-

)))

ss.

-9-


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FIT'TH AMENDMENT TO LEASE

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Floor Plan 6)- 2nd Floor


4823-4296-9147.01 102616/1101/65107.00002

IN THE UNITED STATES BANKRUPTCY COURT

FOR THE SOUTHERN DISTRICT OF INDIANA

INDIANAPOLIS DIVISION

In re: Chapter 7

ITT EDUCATIONAL SERVICE, INC.,

Case No. 16-07207

Debtor.

CERTIFICATE OF SERVICE

I hereby certify that on October 26, 2016, the DECLARATION OF GREGG KATS IN

SUPPORT OF BOEING EMPLOYEES’ CREDIT UNION’S LIMITED OBJECTION TO

TRUSTEE’S FIRST MOTION FOR ENTRY OF AN ORDER (I) EXTENDING THE TIME FOR

PERFORMANCE BY THE TRUSTEE; (II) AUTHORIZING REJECTION OF CERTAIN

EXECUTORY CONTRACTS AND UNEXPIRED LEASES AND ABANDONMENT OF

PERSONAL PROPERTY; AND (III) APPROVING LEASE REJECTION NOTICE

PROCEDURE was electronically filed with the Court. Notice of this filing was sent to the

following parties through the Court’s Electronic Case Filing System:

Robert N Amkraut [email protected]

Scott S. Anders [email protected], [email protected]

Joseph E Bain [email protected]

Kay Dee Baird [email protected], [email protected];[email protected]

Michael I. Baird [email protected], [email protected]

William J. Barrett [email protected], [email protected]

Ashley Flynn Bartram [email protected], [email protected]

Richard James Bernard [email protected]

Joan Ligocki Blackwell [email protected]

Robert A. Breidenbach [email protected]

Kayla D. Britton [email protected],

[email protected];[email protected]

Jason R Burke [email protected], [email protected]

Kevin M. Capuzzi [email protected],


James E. Carlberg [email protected], [email protected];[email protected]

Case 16-07207-JMC-7A Doc 500-1 Filed 10/26/16 EOD 10/26/16 14:35:10 Pg 1 of 6

- 2 - 4823-4296-9147.01 102616/1101/65107.00002

Steven Dean Carpenter [email protected]

Deborah Caruso [email protected], [email protected];[email protected]

Deborah J. Caruso [email protected], [email protected];mcruser@rubin-

levin.net

Joshua W. Casselman [email protected], [email protected]

Sonia A. Chae [email protected]

John Andrew Chanin [email protected]

Michael Edward Collins [email protected]

Lawrence D. Coppel [email protected]

Heather M. Crockett [email protected], [email protected]

David H DeCelles [email protected]

Dustin R. DeNeal [email protected],


Laura A DuVall [email protected], [email protected]

Abby Engen [email protected], [email protected]

Charles Anthony Ercole [email protected], [email protected]

Andrew W Ferich [email protected]

Patrick F.X. Fitzpatrick [email protected],

[email protected];[email protected];[email protected];mdabio@benesch

law.com

Lydia Eve French [email protected]

John Andrew Goodridge [email protected], [email protected];[email protected]

Alan Mark Grochal [email protected]

Julian Ari Hammond [email protected], [email protected]

Adam Craig Harris [email protected]

Rocio Herrera [email protected], [email protected]

Michael W. Hile [email protected]

John C. Hoard [email protected], [email protected];[email protected]

Jeffrey A Hokanson [email protected],


Jeffrey L Hunter [email protected],

[email protected];[email protected];[email protected]

James C Jacobsen [email protected], [email protected]

Christine K. Jacobson [email protected], [email protected]

Jay Jaffe [email protected], [email protected]

Benjamin F Johns [email protected], [email protected]

Russell Ray Johnson [email protected]

Anthony R. Jost [email protected], [email protected]

Stephanie A Kanan [email protected], [email protected]

Timothy Q. Karcher [email protected]

Taejin Kim [email protected]

Edward M King [email protected], [email protected];[email protected]

Lawrence Joel Kotler [email protected]

Jerrold Scott Kulback [email protected]

David S Lefere [email protected], [email protected]

Martha R. Lehman [email protected],


Donald D Levenhagen [email protected]


- 3 - 4823-4296-9147.01 102616/1101/65107.00002

Melinda Hoover MacAnally [email protected], [email protected]

Jeff J. Marwil [email protected],


Patrick Francis Mastrian [email protected],

[email protected]

Michael K. McCrory [email protected], [email protected]

Maureen Elin McOwen [email protected]

Robert W. Miller [email protected]

James P Moloy [email protected], [email protected];[email protected]

Ronald J. Moore [email protected]

Hal F Morris [email protected]

Kevin Alonzo Morrissey [email protected], JMcAlpin@lewis-

kappes.com;[email protected];[email protected]

Whitney L Mosby [email protected], [email protected]

C Daniel Motsinger [email protected],


Lee Duck Moylan [email protected], [email protected]

Abraham Murphy [email protected]

Alissa M. Nann [email protected]

Henry Seiji Newman [email protected]

Danielle Ann Pham [email protected]

Jack A Raisner [email protected]

Jonathan Hjalmer Reischl [email protected]

David A. Rosenthal [email protected]

James E Rossow [email protected], [email protected];robin@rubin-

levin.net;[email protected]

Rene Sara Roupinian [email protected],

[email protected];[email protected];[email protected];rfisher@outt

engolden.com;[email protected]

Craig Damon Rust [email protected], [email protected]

Joseph Michael Sanders [email protected]

Thomas C Scherer [email protected], [email protected]

Courtney Michelle Scott [email protected]

Patricia K. Smoots [email protected]

Lauren C. Sorrell [email protected]

Jonathan David Sundheimer [email protected]

Nancy K. Swift [email protected], [email protected]

Eric Jay Taube [email protected],


Meredith R. Theisen [email protected], [email protected];mcruser@rubin-

levin.net

Meredith R. Theisen [email protected], [email protected];mcruser@rubin-

levin.net

Jessica L Titler [email protected]

Todd Christian Toral [email protected]

Ronald M. Tucker [email protected], [email protected],[email protected]

U.S. Trustee [email protected]

Sally E Veghte [email protected], [email protected]


- 4 - 4823-4296-9147.01 102616/1101/65107.00002

Amy L VonDielingen [email protected]

Christine M.H. Wellons [email protected]

Bradley Winston [email protected], [email protected]

James T Young [email protected], [email protected];[email protected]

I further certify that on October 26, 2016, a copy of the forgoing mentioned document was

mailed by first-class U.S. Mail, postage prepaid and properly addressed, to the following:

Eboney Cobb

Perdue Brandon Fielder Collins Mott LLP

500 E Border Street Suite 640

Arlington, TX 76010

Daniel Webster College, Inc.

20 University Drive

Nashua, NH 03063

John P Dillman

Attorney in Charge for Taxing Authoritie

PO Box 3064

Houston, TX 77253

ESI Service Corp.

13000 N. Meridian Street

Carmel, IN 46032-1404

Florida Department of Education

Office of Student Financial Assistance

PO Box 7019

Tallahassee, FL 32314-7019

Chris W Halling

for Solar Drive Business LLC

23586 Calabasas Rd, Ste 200

Calabasas, CA 91302

ITT Educational Services, Inc.

13000 N. Meridian Street

Carmel, IN 46032-1404

Jordan A Lavinsky, Esq

for Market-Turk Company

425 Market St, 26th Floor

San Francisco, CA 94105


- 5 - 4823-4296-9147.01 102616/1101/65107.00002

Joseph A Malfitano

for Tiger Capital Group LLC

747 Third Ave, 2nd Floor

New York, NY 10017

Northwest Natural Gas Company

220 NW 2nd Avenue

Portland, OR 97209

Rachel Obaldo

Office of the Texas Attorney General

Bankruptcy & Collections Division

PO Box 12548

Austin, TX 78711-2548

Recovery Management Systems Corporation

for Synchrony Bank

25 SE 2nd Ave, Ste 1120

Miami, FL 33131-1605

Carl O Sandin

for Clear Creek Independent School Distr

1235 North Loop West, Ste 600

Houston, TX 77008

TN Dept of Revenue

c/oTN Atty General, Bankruptcy Div

PO Box 20207

Nashville, TN 37202-0207

Paul Weiser Esq.

Bachalter Nemer

16435 North Scottsdale Road, Suite 440

Scottsdale, AZ 85254-1754

Elizabeth Weller

Linebarger Goggan Blair & Sampson, LLP

2777 N. Stemmons Freeway, Suite 1000

Dallas, TX 75207


- 6 - 4823-4296-9147.01 102616/1101/65107.00002

I declare under penalty of perjury under the laws of the United States that the foregoing is

true and correct.

Dated: October 26, 2016

Respectfully submitted,

RIDDELL WILLIAMS, P.S.

By: /s/ Robert N. Amkraut

Robert N. Amkraut

1001 Fourth Avenue, Suite 4500

Seattle, WA 98154-1192

Phone: (206) 624-3600

Fax: (206) 389-1708

[email protected]

Attorneys for Boeing Employees’ Credit

Union


mailto:[email protected]

it flidomnimgt.com/cmsvol2/pub_47137/595930_500.pdf · 49.48* (Àrticle 7) this lease consists of:...

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