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| 1.1 | REFERENCES:      All references in this Lease (subject to any further clarification      contained in this Lease) to the following terms shall have the following      meaning or refer to the respective address, person, date, time period,      amount, percentage, calendar year or fiscal year as below set      forth: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |                                                    |   |                                                    |
|--------|--------|--------|---------------------------------------------------------|--------|---------------------------------------------------------|
|   | A.     |   | Tenant’s      Address for Notice:                 |   | 355      Turtle Creek CourtSan      Jose, CA. 95125     |   |
|   |   |   |                                                    |   |                                                    |   |
|   | B.     |   | Tenant’s      Representative:Phone      number:   |   | John      R. Johnston503-992-4280,      503-805-7972FAX |   |
|   |   |   |                                                    |   |                                                    |   |
|   | C.     |   | Landlord’s      Address for Notice:               |   | 18781      Westview DriveSaratoga,      CA. 95070       |   |
|   |   |   |                                                    |   |                                                    |   |
|   | D.     |   | Landlord’s      Representative:Phone      Number: |   | Robert      Ducote873-2300,      257-7144FAX            |   |
|   |   |   |                                                    |   |                                                    |   |
|   | E.     |   | Intended      Commencement Date:                        |   | January      1, 2010                                    |   |
|   |   |   |                                                    |   |                                                    |   |
|   | F.     |   | Intended      Term:                                     |   | 30      Months                                          |   |
|   |   |   |                                                    |   |                                                    |   |
|   | G.     |   | Lease      Expiration Date:                             |   | June      30, 2012                                      |   |
|   |   |   |                                                    |   |                                                    |   |
|   | H.     |   | Tenant’s      Punch List Period:                  |   | Fifteen      (15) days                                  |   |
|   |   |   |                                                    |   |                                                    |   |
|   | I.     |   | First      Month’s Prepaid Rent:                  |   | $                                                       | 13,500.00 |   |
|   |   |   |                                                    |   |                                                    |   |   |
|   | J.     |   | Last      Month’s Prepaid Rent:                   |   | $                                                       | 807.61 |   |
|   |   |   |                                                    |   |                                                    |   |   |
|   | K.     |   | Tenant’s      Security Deposit:                   |   | Not      applicable                                     |   |
|   |   |   |                                                    |   |                                                    |   |   |
|   | L.     |   | Late      Charge Amount:                                |   | $                                                       | 100.00 |   |
|   |   |   |                                                    |   |                                                    |   |   |
|   | M.     |   | Real      Property Tax Base Year:                       |   |                                                    | 2010-2011 |   |
|   |   |   |                                                    |   |                                                    |   |   |
|   | N.     |   | Insurance      Base Year:                               |   |                                                    | 2010-2011 |   |
|   |   |   |                                                    |   |                                                    |   |   |
|   | O.     |   | Tenant’s      Required Liability Coverage:        |   | $                                                       | 500,000.00 |   |
|   |   |   |                                                    |   |                                                    |   |   |
|   | P.     |   | Tenant’s      Number of Parking Spaces:           |   | Entire      lot for 355 Turtle Creek Court              |   |

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| Q. | Project      and Building: That certain real property situated in the City of San Jose,      County of Santa Clara, State of California, as presently improved with one      (1) building, which real property is shown on the Site Plan attached      hereto as Exhibit “A” and is commonly known as or otherwise described as      follows: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| R. | Leased      Premises: That certain interior space within the Building, which space is      shown outlined in red on the Floor Plan attached hereto as Exhibit “B”      consisting of approximately 13,990 square feet and, for purposes of this      Lease, agreed to contain said number of square feet. The Leased Premises      are commonly known as or otherwise described as  follows: |
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| S. | Base      Monthly Rent: The term “Base Monthly Rent” shall mean the following:      Without prior demand, Tenant shall pay monthly rent on or before the tenth      day of each month as follows: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| T. | Permitted      Use: The term “Permitted Use” shall mean the following: Office use and      machining and fabrication of electronic components. Such use shall not      include the manufacture, use, or storage of industrial solvents, excepting      ordinary janitorial cleaning solutions and then only in quantities      necessary for routine janitorial cleaning of the demised premises.      Notwithstanding the foregoing sentence, such solvents may be used or      stored on the premises if and only if Tenant obtains written authorization      executed by Landlord specifying the solvent or solvents permitted to be      used or stored and the permissible quantities of each    solvent. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| U. | Exhibits:      The term “Exhibits” shall mean the Exhibits to this Lease, which is      described as follows: |
|----|---------------------------------------------------------------------------------------------------------------------------|

| V. | Addenda:      The term “Addenda” shall mean the Addendum or (Addenda) to this      Lease. |
|----|-------------------------------------------------------------------------------------------------------|

|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

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|   | ARTICLE      2 |
|--------|----------------|

|   | LEASED      PREMISES TERM AND POSSESSION |
|--------|------------------------------------------|

| 2.1 | DEMISE      OF LEASED PREMISES: Landlord hereby leases to Tenant and tenant hereby      leases from Landlord for Tenant’s own use in the conduct of Tenant’s      business and not for purposes of speculating in real estate, for the Lease      Term and upon the terms and subject to the conditions of this Lease, that      certain interior space described in Article 1 as the Leased Premises,      reserving and excepting to Landlord the exclusive right to all profits to      be derived from any assignments or sub-lettings by Tenant during the Lease      Term by reason of the appreciation in the fair market rental value of the      Leased Premises. Landlord further reserves the right to install,      maintains, use and replace ducts, wires, conduits and pipes leading      through the Leased Premises in locations which will not materially      interfere with Tenant’s use of the Lease Premises. Tenant’s Lease of the      Leased Premises, together with the appurtenant right to use the Common      Areas as described in Paragraph 2.2 below, shall be conditioned upon and      be subject to the continuing compliance by Tenant with (i) ail the terms      and conditions of this Lease, (ii) all Laws governing the use of the      Leased Premises and the Project, (iii) all Private Restrictions, easements      and other matters now of public record respecting the use of the Leased      Premises and the Project, and (iv) all reasonable rules and regulations      from time to time established byLandlord. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | RIGHT      TO USE COMMON AREAS: As an appurtenant right to Tenant’s right to the use      of the Leased Premises, Tenant shall have the non-exclusive right to use      the Common Areas in conjunction with other tenants of the Project and      their invitees, subject to the limitations on such use as set forth in      Article 4, and solely for the purposes for which they were designed and      intended. Tenant’s right to use the Common Areas shall terminate      concurrently with any termination of thisLease. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3 | LEASE      COMMENCEMENT DATE AND LEASE TERM: The term of this Lease shall begin, and      the Lease Commencement Date shall be deemed to have occurred, on the      Intended Commencement Date (as set forth in Article 1) unless either (i)      Landlord is unable to deliver possession of the Leased Premises to Tenant      on the Intended Commencement Date, in which case the Lease Commencement      Date shall be as determined pursuant to Paragraph 2.7 below (the “Lease      Commencement Date”). The term of this Lease shall end on the Lease      Expiration Date (as set forth in Article 1), irrespective of whatever date      the Lease Commencement Date is determined to be pursuant to the foregoing      sentence. The Lease Term shall be that period of time commencing on the      Lease Commencement Date and ending on the Lease Expiration Date (the      “Lease Term”). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | DELIVERY      OF POSSESSION: Landlord shall deliver to Tenant possession of the Leased      Premises on or before the Intended Commencement Date (as set forth in      Article 1) in their presently existing condition, broom clean, unless      Landlord shall have agreed, as a condition to Tenant’s obligation, to      accept possession of the Leased Premises, pursuant to an Addenda attached      to and made a part of this Lease to modify existing interior improvements      or to make, construct and/or install additional specified improvements      within the Leased Premises, in which case Landlord shall deliver to Tenant      possession of the Leased Premises on or before the Intended Commencement      Date as so modified and/or improved. If Landlord is unable to so deliver      possession of the Leased Premises to Tenant on or before the Intended      Commencement Date, for whatever reason, Landlord shall not be in default      under this Lease, nor shall this Lease be void, voidable or cancelable by      Tenant until the lapse of one hundred twenty days after the Intended      Commencement Date (the “delivery grace period”); however, the Lease      Commencement Date shall not be deemed to have occurred until such date as      Landlord notifies Tenant that the Leased Premises are Ready for Occupancy.      Additionally, the delivery grace period above set forth shall be extended      for such number of days as Landlord may be delayed in delivering      possession of the Leased Premises to Tenant by reason of Force Majeure or      the actions of Tenant. If Landlord is unable to deliver possession of the      Leased Premises to Tenant within the described delivery grace period      (including any extensions thereof by reason of Force Majeure of the      actions of Tenant), then Tenant’s sole remedy shall be to cancel and      terminate this Lease, and in no event shall Landlord be liable to Tenant      for such delay. Tenant may not cancel this Lease at any time after the      date Landlord notifies Tenant the Lease Premises are Ready for      Occupancy. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

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| 2.5 | ACCEPTANCE      OF POSSESSION: Tenant acknowledges that it has inspected the Leased      Premises and is willing to accept them in their existing condition, broom      clean, unless Landlord shall have agreed, as a condition to Tenant’s      obligation to accept possession of the Leased Premises, pursuant to an      Addenda attached to and made a part of this Lease to modify existing      interior improvements or to make, construct and/or install additional      specified improvements within the Leased Premises, in which case Tenant      agrees to accept possession of the Lease Premises when Landlord has      substantially completed such modifications or improvements and the Lease      Premises are Ready for Occupancy. If Landlord shall have so modified      existing improvements or constructed additional improvements within the      Leased Premises for Tenant, Tenant shall, with Tenant’s punch list Period      (as set forth in Article 1) which shall commence on the date that Landlord      notifies Tenant that the Leased Premises are Ready for Occupancy, submit      to Landlord a punch list of all incomplete and/or improper worked      performed by Landlord. Upon the expiration of Tenant’s punch list Period,      Tenant shall be conclusively deemed to have accepted the Leased Premises      in their then-existing condition as so delivered by landlord to Tenant,      except as to those items reasonably set forth in Tenant’s punch list,      provided that such punch list was submitted to Landlord with Tenant’s      Punch list Period. Additionally, Landlord agrees to place in good working      order all existing plumbing, lighting, heating, ventilating and air      conditioning systems within the Leased Premises and all man doors and      roll-up truck doors serving the Leased Premises to the extent that such      systems and/or items are not in good operating condition as of the date      Tenant accepts possession of the Leased Premises; provided that, an only      if, Tenant notifies Landlord in writing of such failures or deficiencies      within five business days from the date Tenant so accepts possession of      the Lease Premises. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.6 | SURRENDER      OF POSSESSION: Immediately prior to the expiration or upon the sooner      termination of this Lease, tenant shall remove all of Tenant’s signs from      the exterior of the Building and shall remove all of Tenant’s equipment,      trade fixtures, furniture, supplies, wall decorations and other personal      property from the Leased Premises, and shall vacate and surrender the      Leased Premises to Landlord in the same condition, broom clean, as existed      at the Lease Commencement Date, reasonable wear and tear expected. Tenant      shall repair all damage to the Leased Premises caused by Tenant’s removal      of tenant’s property and all damage to the exterior of the Building caused      by Tenant’s removal of Tenant’s signs. Tenant shall patch and refinish, to      Landlord’s reasonable satisfaction, all penetrations made by Tenant or its      employees to the floor, walls or ceiling of the Lease Premises, whether      such penetrations were made with Landlord’s approval or not. Tenant shall      repair or replace all stained or damaged ceiling tiles, wall coverings and      floor coverings to the reasonable satisfaction of Landlord. Tenant shall      repair all damage caused by Tenant to the exterior surface of the Building      and the paved surfaces of the outside areas adjoining the Leased Premises      and, where necessary, replace or resurface same. Additionally, Tenant      shall, prior to the expiration or sooner termination of this Lease, remove      any improvements constructed or installed by Tenant which Landlord      requests be so removed by Tenant and repair all damage caused by such      removal. If the Leased Premises are not surrendered to Landlord in the      condition required by this Paragraph at the expiration or sooner      termination of this Lease, Landlord may, at Tenant’s expense, so remove      Tenant’s signs, property and/or improvements not so removed and make such      repairs and replacements not so made or hire, at Tenant’s expense,      independent contractors to perform such work. Tenant shall be liable to      Landlord for all costs incurred by Landlord in returning the Leased      Premises to the required condition, plus interest on all costs incurred      from the date paid by Landlord at the then maximum rate of interest not      prohibited by Law until paid, payable by Tenant to Landlord within tent      days after receipt of a statement therefore from Landlord. Tenant shall      indemnify Landlord against loss or liability resulting from delay by      Tenant in so surrendering the Leased Premises, including, without      limitation, any claims made by any succeeding tenant or any losses to      Landlord due to the lost opportunities to lease succeeding      tenants. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.7 | EARLY      OCCUPANCY: If Tenant enters into possession of the Lease Premises prior to      the Intended Commencement Date (or permits its contractors to enter the      Leased Premises prior to the Intended Commencement Date), unless otherwise      agreed in writing by Landlord, the Lease Commencement Date shall be deemed      to have occurred on such sooner date, and Tenant shall be obligated to      perform all its obligations under this Lease, including the obligation to      pay rent, from that sooner date. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

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| 3.1 | BASE      MONTHLY RENT: Commencing on the Lease Commencement Date (as determined      pursuant to Paragraph 2.3 above) and continuing throughout the Lease Term,      Tenant shall pay to Landlord, without prior demand therefore, in advance      on the first day of each calendar month, as base monthly rent, the amount      set forth as “Base Monthly Rent” in Article 1 (the “Base Monthly      Rent”). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | ADDITIONAL      RENT: Commencing on the Lease Commencement Date (as determined pursuant to      Paragraph 2.3 above) and continuing throughout the Lease Term, Tenant      shall pay to Landlord as additional rent (the “Additional Rent”) the      following amounts: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A. | Tenant’s      Proportionate Share of all increases in Landlord’s Insurance Costs and      Real Property Taxes over those paid during the period set forth in Article      1 as the “Insurance Base Year” and the “Real Property Tax Base Year”,      respectively, plus an accounting fee equal to five percent of such      increase. Payment shall be made by whichever of the following methods is      from time to time designated byLandlord: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Landlord      may bill to Tenant, on a periodic basis not more frequent than monthly,      Tenant’s Proportionate Share of any increases in Landlord’s Insurance      Costs or Real Property Taxes, as paid or incurred by Landlord during the      current period over those paid or incurred in the same period during the      applicable Base Year, and Tenant shall pay such share of such increases,      together with an accounting fee equal to five percent of the amount      billed, within ten days after receipt of a written bill therefore from      Landlord; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Landlord      may deliver to Tenant Landlord’s reasonable estimate of the increase in      Landlord’s Insurance Costs and/or Real Property Taxes it anticipates will      be paid or incurred for the ensuing calendar or fiscal year, as the case      requires, over those paid or incurred during the applicable Base Year, and      Tenant shall pay its Proportionate Share of the estimated increases for      such year, together with an accounting fee equal to five percent of the      amount billed, in equal monthly installments during such year with the      installments of Base Monthly Rent. Landlord reserves the right to change      from time to time the method of billing Tenant its Proportionate Share of      such increases or the periodic basis on which such increases are      billed. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | Landlord’s      share of the consideration received by Tenant upon certain assignments and      subletting as required by Article7; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | Any      legal fees and costs that Tenant is obligated to pay or reimburse to      Landlord pursuant to Article 13;and |
|--------|----|------------------------------------------------------------------------------------------------------------------------|

|   | D. | Any      other charges or reimbursements due Landlord from Tenant pursuant to the      terms of this Lease. |
|--------|----|-------------------------------------------------------------------------------------------------------------|

|   | E. | For      the purposes of this Lease, the term “Additional Rent” shall not include      an accounting fee equal to five percent (5%) of the increase in the      Tenant’s Proportionate Share in any increases in Landlord’s Insurance      Costs or Real Property Taxes. No such charge shall be imposed on the      Tenant during the term of theLease. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

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| 3.3. | YEAR-END      ADJUSTMENTS: If Landlord shall have elected to charge Tenant its      Proportionate Share of the increases in Landlord’s Insurance Costs and/or      Real Property Taxes on an estimated basis in accordance with the      provisions of Paragraph 3.2A(2) above, Landlord shall furnish to Tenant      within three months following the end of the applicable calendar or fiscal      year, as the case may be, a statement setting forth (i) the amount of      Landlord’s Insurance Costs and/or Real Property Taxes paid or incurred      during the just ended calendar or fiscal year, as appropriate, (ii) the      amount of Landlord’s Insurance Costs and/or Real Property Taxes paid or      incurred during the applicable Base Year, and (iii) Tenant’s Proportionate      Share of the increases, if any, in Landlord’s Insurance Costs and/or Real      Property Taxes for the just ended fiscal or calendar year, as appropriate.      If Tenant shall have paid more than its Proportionate Share of such      increases for the previous year, Landlord shall, at its election, either      (i) credit the amount of such overpayment toward the next ensuing payment      or payments of Additional Rent that would otherwise be due or (ii) refund      in cash to Tenant the amount of such overpayment. If such year-end      statement shall show that Tenant did not pay its Proportionate Share of      any such increases in full, then Tenant shall pay to Landlord the amount      of such underpayment, together with the accounting fee applicable thereto,      within ten days from Landlord’s billing of same to Tenant. The provisions      of this Paragraph shall survive the expiration or sooner termination of      this Lease. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.4 | LATE      CHARGE AND INTEREST ON RENT IN DEFAULT: Tenant acknowledges that the late      payment by Tenant of any monthly installment of Base Monthly Rent or any      Additional Rent will cause Landlord to incur certain costs and expenses      not contemplated under this Lease, the exact amounts of which are      extremely difficult or impractical to fix. Such costs and expenses will      include, without limitation, administration and collection costs and      processing and accounting expenses. Therefore, if any installment of Base      Monthly Rent is not received by Landlord from Tenant with six calendar      days after the same becomes due, Tenant shall immediately pay to Landlord      a late charge in an amount equal to the amount set forth in Article 1 as      the “Late Charge Amount”, and if any Additional Rent is not received by      Landlord within six calendar days after same becomes due, Tenant shall      immediately pay to Landlord a late charge in an amount equal to ten      percent of the Additional Rent not so paid. Landlord and Tenant agree that      this late charge represents a reasonable estimate of such costs and      expenses and is fair compensation to Landlord for its loss suffered by      reason of Tenant’s failure to make timely payment. In no event shall this      provision for a late charge be deemed to grant to Tenant a grace period or      extension of time within which to pay any rental installment or prevent      Landlord from exercising any right or remedy available to Landlord upon      Tenant’s failure to pay each rental installment due under this Lease when      due, including the right to terminate this Lease. If any rent remains      delinquent for a period in excess of six calendar days, then, in addition      to such late charge, Tenant shall pay to Landlord interest on any rent      that is not so paid from said sixth day at the then maximum interest rate      not prohibited by Law until paid. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.5 | PAYMENT      OF RENT: All rent shall be paid in lawful money of the United States,      without any abatement, deduction or offset for any reason whatsoever, to      Landlord at such address as Landlord may designate from time to time.      Tenant’s obligation to pay Base Monthly Rent and all Additional Rent shall      be prorated at the commencement and expiration of the Lease Term. The      failure of Tenant to pay any of the Additional Rent as required pursuant      to this Lease when due shall be treated the same as a failure by Tenant to      pay Base Monthly Rent when due, and Landlord shall have the same rights      and remedies against Tenant as Landlord would have if Tenant failed to pay      the Base Monthly Rent when due. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.6 | PREPAID      RENT: Tenant has paid to Landlord the amount set forth in Article 1 as      “First Month’s Prepaid Rent” as prepayment of rent for credit against the      first installment(s) of Base Monthly Rent due hereunder. Additionally,      Tenant has paid to Landlord the Monthly Rent due hereunder, subject,      however, to the provisions of Paragraph 3.7  below. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

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| 3.7 | SECURITY      DEPOSIT: Tenant has deposited with Landlord the amount set forth in      Article 1 as the “Security Deposit” as security for the performance by      Tenant of the terms of this Lease to be performed by Tenant, and not as      prepayment of rent. Landlord may apply such portion or portions of the      Security Deposit as are reasonably necessary for the following purposes:      (i) to remedy any default by Tenant in the payment of Base Monthly Rent or      Additional Rent or a late charge or interest on default rent; (ii) to      repair damage to the Lease Premises caused by Tenant; (iii) to clean and      repair the Lease Premises following their surrender to Landlord if not      surrendered in the condition required pursuant to the provisions of      Article 2; and (iv) to remedy any other default of Tenant to the extent      permitted by Law including, without limitation, paying in full on Tenant’s      behalf any sums claimed by material-men or contractors of Tenant to be      owing to them by Tenant for work done or improvements made at Tenant’s      request to the Lease Premises. In this regard, Tenant hereby waives any      restriction on the uses to which the Security Deposit may be applied as      contained in Section 1950.7(c) of the California Civil Code and/or any      successor statute. In the event the Security Deposit or any portion      thereof is so used, Tenant shall pay to Landlord, promptly upon demand, an      amount in cash sufficient to restore the Security Deposit to the full      original sum if Tenant fails to promptly restore the Security Deposit and      if Tenant shall have paid to promptly restore the Security Deposit and if      Tenant shall have paid to Landlord any sums as “Last Month’s Prepaid Rent”      Landlord may, in addition to any other remedy Landlord may have under this      Lease reduce the amount of Tenant’s Last Month’s Prepaid Rent by      transferring all or portions of such Last Month’s Prepaid Rent to Tenant’s      Security Deposit until such Security Deposit is restored to the amount set      forth in Article 1. Landlord shall not be deemed a trustee of the Security      Deposit. Landlord may use the Security Deposit in Landlord’s ordinary      business and shall not be required to segregate it from its general      accounts. Tenant shall not be entitled to any interest on the Security      Deposit. If Landlord transfers the Building during the Lease Term,      Landlord may pay the Security Deposit to any subsequent owner in      conformity with the provisions of Section 1905.7 of the California Civil      Code and/or any successor statute. In which event the transferring      landlord shall be released from all liability for the return of the      Security Deposit. Tenant specifically grants to Landlord (and hereby      waives the provisions of California Civil Code Section to the contrary) a      period of sixty days following a surrender of the Leased Premises by      Tenant to Landlord within which to restore the Security Deposit (less      permitted deductions) to Tenant, if being agreed between Landlord and      Tenant that sixty days is a reasonable period of time within which to      inspect the Lease Premises, make required repairs, receive and verify      workmen’s billings therefore, and prepare a final accounting with respect      to such deposit. In no event shall the Security Deposit, or any portion      thereof, be considered prepaidrent. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1 | PERMITTED      USE: Tenant shall be entitled to use the Leased Premises solely for the      “Permitted use” as set forth in Article 1 and for no other purpose      whatsoever. Tenant shall continuously and without interruption use the      Lease Premises for such purpose for the entire Lease Term. Any      discontinuance of such use for a period of thirty consecutive calendar      days shall be, at Landlord’s election, a default by Tenant under the terms      of this Lease. Subject to the limitations contained in this Article 4,      Tenant shall have the right to use the Common Areas, in conjunction with      other tenants and during normal business hours, solely for the purposes      for which they were intended and for no other purposes whatsoever. Tenant      shall not have the right to use the exterior surfaces of exterior walls,      the area beneath the floor or the area above the ceiling of the Leased      Premises. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

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| 4.2 | GENERAL      LIMITATIONS ON USE: Tenant shall not do or permit anything to be done in      or about the Leased Premises, the Building, the Common Areas or the      Project which does or could (i) interfere with the rights of other tenants      or occupants of the Building or the Project, (ii) jeopardize the      structural integrity of the Building or (iii) cause damage to any part of      the Building or the Project. Tenant shall not operate any equipment within      the Leased Premises which does or could (i) injure, vibrate or shake the      Leased Premises or the building, (ii) damage, overload or impair the      efficient operation of any electrical, plumbing, heating, ventilating or      air conditioning systems within or servicing the Lease Premises or the      Building or (iii) damage or impair the efficient operation of the      sprinkler system (if any) within or servicing the Leased Premises or the      Building. Tenant shall not install any equipment or antennas on or make      any penetrations of the exterior walls or roof of the Building. Tenant      shall not affix any equipment to or make any penetrations or cuts in the      floor, ceiling or walls of the Leased Premises. Tenant shall not place any      loads upon the floors, walls ceilings or roof systems, which could      endanger the structural integrity of the Building or damage its floors,      foundations or supporting structural components. Tenant shall not place      any explosive, flammable or harmful fluids or other waste materials in the      drainage systems of the Building or the Project. Tenant shall not drain or      discharge any fluids in the landscaped areas or across the paved areas o      the Project. Tenant shall not use any area located outside the Leased      Premises for the storage of its materials, supplies, inventory or      equipment, and all such materials, supplies, inventory and equipment shall      at all times be stored within the Leased Premises. Tenant shall not commit      nor permit to be committed any waste in or about the Leased Premises, the      Common Areas or the Project. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | NOISE      AND EMISSIONS: All noise generated by Tenant in its use of the Leased      Premises shall be confined or muffled so that it does not interfered with      the businesses or annoy other tenants of the Building or the Project. All      dust, fumes odors and other emissions generated by Tenant’s use of the      Leased Premises shall be sufficiently dissipated in accordance with sound      environmental practices and exhausted from the Leased Premises in such a      manner so as not to interfere with the businesses of or annoy other      tenants of the Building or the Project, or cause any damage to the Leased      Premises or the Building or any component part thereof or the property of      other tenants of the Building of theProject. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | TRASH      DISPOSAL: Tenant shall provide trash and garbage disposal facilities      inside the Leased Premises for all of its trash, garbage and waste      requirements (other than general office waste which may be disposed of in      the trash bins provided by Landlord), and shall cause such trash, garbage      and waste to be regularly removed from the Leased Premises at Tenant’s      sole cost. Tenant shall keep all areas outside the Leased Premises and all      fire corridors and mechanical equipment rooms in or about the Leased      Premises free and clear of all trash, garbage, waste and boxes containing      same at all times. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

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| 4.5 | PARKING:      Tenant is allocated, and Tenant and its employees and invitees shall have      the non-exclusive right to use, not more than the number of parking spaces      set forth in Article 1 as “Tenant’s Number of Parking Spaces”. Tenant      shall not, at any time, use or permit its employees or invitees to use      more parking spaces than the number so allocated to Tenant. Tenant shall      not have the exclusive right to use any specific parking space, and      Landlord reserves the right to designate from time to time the location of      the parking spaces allocated for Tenant’s use. In the event Landlord      elects or is required by any Law to limit or control parking within the      Project, whether by validation of parking tickets or any other method,      Tenant agrees to participate in such validation or other program as      reasonably established by Landlord. Tenant shall not, at any time, park or      permit to be parked any trucks or vehicles adjacent to entryways or      loading areas within the Project so as to interfere in any way with the      use of such areas, nor shall Tenant, at any time, park or permit the      parking of Tenant’s trucks or other vehicles, or the trucks and vehicles      of Tenant’s suppliers or others, in any portion of the Common Areas not      designated by Landlord for such use by Tenant. Tenant shall not, at any      time, park or permit to be parked any recreational vehicles, inoperative      vehicles or equipment on any portion of the common parking area or other      Common Areas of the Project. Tenant agrees to assume responsibility for      compliance by its employees and invitees with the parking provisions      contained herein. If Tenant or its employees park any vehicle within the      Project in violation of these provisions, then Landlord may charge Tenant,      as Additional Rent, and Tenant agrees to pay, as Additional Rent, Ten      Dollars per day for each day or partial day that each such vehicle is      parked in any area other than that designated. Tenant hereby authorizes      Landlord, at Tenant’s sole expense, to tow away from the Project and store      until redeemed by its owner any vehicle belonging to Tenant or Tenant’s      employees parked in violation of these  provisions. |
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| 4.6 | SIGNS:      Tenant shall not place or install on or within any portion of the Leased      Premises, the Building, the Common Areas or the Project any sign (other      than a business identification sign first approved by Landlord in      accordance with this Paragraph), advertisements, banners, placards or      pictures which are visible from the exterior of the Leased Premises.      Tenant shall not place or install on or within any portion of the Leased      Premises, the Building, the Common Areas or the Project any business      identification sign which is visible from the exterior of the Leased      Premises until Landlord shall have first approved in writing the location,      sized, content, design, method of attachment and material to be used in      the making of such sign. Any signs, once approved by Landlord, shall be      installed only in strict compliance with Landlord’s approval, at Tenant’s      expense, using a person first approved by Landlord to install same.      Landlord may remove any signs (not first approved in writing by Landlord),      advertisements, banners, placards or pictures so placed by Tenant on or      with the Leased Premises, the Building, the Common Areas or the Project      and charge to tenant the cost of such removal, together with any costs      incurred by landlord to repair any damage caused thereby, including any      cost incurred to restore the surface upon which such sign was so affixed      to its original condition. Tenant shall remove any such signs, repair any      damage caused thereby, and restore the surface upon which the sign was      affixed to its original condition, all to Landlord’s reasonable      satisfaction, upon the termination of this  Lease. |
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| 4.7 | COMPLIANCE      WITH LAWS AND PRIVATE RESTRICTIONS: Tenant shall not use or permit any      person to use the Leased Premises in any manner, which violates any Laws      or Private Restrictions. Tenant shall abide by and shall promptly observe      and comply with, at its sole cost and expense, all Laws and Private      Restrictions respecting the use and occupancy of the Lease Premises, the      Building, the Common Areas or the Project and shall defend with competent      counsel, indemnify and hold Landlord harmless from any claims, damages or      liability resulting from Tenant’s failure to do  so. |
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|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

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| 4.8 | COMPLIANCE      WITH INSURANCE REQUIREMENTS: With respect to any insurance policies      carried by Landlord in accordance with the provisions of this Lease,      Tenant shall not conduct (nor permit any other person to conduct) any      activities with the Leased Premises, or store, keep or use anything with      the Leased Premises with (i) is prohibited under the terms of any of such      policies, (ii) could result in the termination of the coverage afforded      under any of such policies, (iii) could give to the insurance carriers the      right to cancel any of such policies, or (iv) could cause an increase in      the rates (over standard rates) charged for the coverage afforded under      any such policies. Tenant shall comply with all requirements of any      insurance company, insurance underwriter, or Board of Fire Underwriters      which are necessary to maintain, at standard rates, the insurance      coverage’s carried by either Landlord or Tenant pursuant to this      Lease. |
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| 4.9 | LANDLORD’S      RIGHT TO ENTER: Landlord and its agents shall have the right to enter the      Leased Premises during normal business hours and subject to Tenant’s      reasonable security measures for the purpose of (i) inspecting the same;      (ii) supplying any services to be provided by Landlord to Tenant; (iii)      showing the Leased Premises to prospective purchasers, mortgagees or      tenants; (iv) making necessary alternations, additions or repairs; (v)      performing any of Tenant’s obligations when Tenant has failed to do so      after giving Tenant reasonable written notice of its intent to do so; and      (vi) posting notices of non-responsibility. Additionally, Landlord shall      have the right to enter the Leased Premises at times of emergency. Any      entry into the Leased Premises or portions thereof obtained by Landlord in      accordance with this Paragraph shall not under any circumstances be      construed or deemed to be a forcible or unlawful entry into, or a detainer      of, the Leased Premises, or an eviction, actual or constructive, of Tenant      from the Leased Premises or any portionthereof. |
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| 4.10 | CONTROL      OF COMMON AREAS: Landlord shall at all times have exclusive control of the      Common Areas. Landlord shall have the right, without the same constituting      an actual or constructive eviction and without entitling Tenant to any      reduction in or abatement of rent, to: (i) temporarily closed any part of      the Common Areas to whatever extent required in the opinion of Landlord’s      counsel to prevent a dedication thereof or the accrual of any prescriptive      rights therein: (ii) temporarily close all or any part of the Common Areas      to perform maintenance or for any other reason deemed sufficient by      Landlord; (iii) change the shape, size, location, number and extent of      improvements within the Common Areas including, without limitation,      changing the location of driveways, entrances, exits, parking spaces,      parking areas, sidewalks, directional or locator signs, or the direction      of the flow of traffic; and (iv) to make additions to the Common Areas      including, without limitation, the construction of parking structures.      Landlord shall have the right to change the name or address of the      Building. Tenant in its use of the Common Areas, shall keep the Common      Areas free and clear of all obstructions created or permitted by Tenant.      If, in the opinion of Landlord, unauthorized persons are using any of the      Common Areas by reason of, or under claim of, the express or implied      authority or consent of Tenant, then Tenant, upon demand of Landlord,      shall restrain, to the fullest extent then allowed by Law, such      unauthorized use, and shall initiate such appropriate proceedings as may      be required to so restrain such use. Nothing contained herein shall affect      the right of Landlord at any time to remove any unauthorized person from      the Common Areas or to prohibit the use of the Common Areas by      unauthorized persons, including without limitation, the right to prohibit      mobile food and beverage vendors. In exercising any such right regarding      the Common Areas, Landlord shall make a reasonable effort to minimize any      disruption to Tenant’s business. |
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| 4.11 | RULES      AND REGULATIONS: Landlord shall have the right from time to time to      establish reasonable rules and regulations and/or amendments or additions      thereto respecting the use within the Project and the use of the Common      Areas for the care and orderly management of the Project and the safety of      its tenants, occupants and invitees. Upon delivery to Tenant of a copy of      such rules and regulations or any amendments or additions thereto, Tenant      shall comply with such rules and regulations. A violation by Tenant of any      of such rules and regulations shall constitute a default by Tenant under      this Lease. If there is a conflict between the rules and regulations and      any of the provisions of this Lease, the provisions of this Lease shall      prevail. Landlord shall not be responsible or liable to Tenant for the      violation of such rules and regulations by any other tenant of the      Project. |
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|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

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| 4.12 | ENVIRONMENTAL      PROTECTION: Landlord may voluntarily cooperate in a reasonable manner with      the efforts of all governmental agencies in reducing actual or potential      environmental damage. Tenant shall not be entitled to terminate this Lease      or to any reduction or abatement of rent by reason of such compliance or      cooperation. Tenant agrees at all times to cooperate fully with Landlord      and to abide by all rules and regulations and requirements which Landlord      may reasonably prescribe in order to comply with the requirements and      recommendations of governmental agencies regulating, or otherwise involved      in, the protection of theenvironment. |
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| 5.1 | REPAIRS      AND MAINTENANCE: Except in the case of damage to or destruction of the      Leased Premises, the Building or the Project caused by an Act of God or      other peril, in which case the provisions of Article 10 shall control, the      parties shall have the following obligations and responsibilities with      respect to the repair and maintenance of the Leased Premises, the Building      and the Common Areas. |
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|   | A. | Tenant’s      Obligation: Tenant shall, at all times during the Leased Term and at its      sole cost and expense, regularly clean and continuously keep and maintain      in good order, condition and repair the Leased Premises and every part      thereof and all appurtenances thereto, including, without limiting the      generality of the foregoing, (i) all interior walls, floors and ceilings,      (ii) all windows, doors and skylights, (iii) all electrical wiring,      conduits, connectors and fixtures, (iv) all plumbing, pipes, sinks,      toilets, faucets and drains, (v) all lighting fixtures, bulbs and lamps,      (vi) all heating, ventilating and air conditioning equipment located      within the Leased Premises or located outside the Leased Premises (e.g.      rooftop compressors) and serving the Leased Premises (other tan Common      HVAC as defined in Subparagraph B below), and all entranceways to the      Leased Premises. Tenant, if requested to do so by Landlord, shall have at      Tenant’s sole cost and expense, a licensed heating, ventilating and air      conditioning contractor to regularly and periodically inspect (not less      frequently than every three months) and perform required maintenance on      the heating, ventilating and air conditioning equipment and systems      serving the Leased Premises, or alternately, Landlord may so contract in      its own name for such regular and periodic inspections of and maintenance      on such heating, ventilating and air conditioning equipment and systems      and charge to Tenant, as Additional Rent, the cost thereof. Tenant shall,      at its sole cost and expense, repair all damage to the Building, the      Common Areas or the Project caused by the activities of Tenant, its      employees, invitees or contractors promptly following written notice from      Landlord to so repair such damage. If Tenant shall fail to perform the      required maintenance or fail to make repairs required of it pursuant to      Paragraph within a reasonable period of time following notice from      Landlord to do so, then Landlord may, at its election and without waiving      any other remedy it may otherwise have under this Lease or at Law, perform      such maintenance or make such repairs and charge to Tenant, as Additional      Rent, the costs so incurred by Landlord for same. All glass within or a      part of the Leased Premises, both interior and exterior, is at the sole      risk of Tenant and any broken glass shall promptly be replaced by Tenant      at Tenant’s expense with glass of the same kind, size and      quality. |
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|   | Initial      _____ _____ _____ |
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|   | B. | Landlord’s      Obligation: Landlord shall, at all times during the Lease Term, maintain      in good condition and repair; (i) the exterior and structural parts of the      Building (including the foundation, sub-flooring, load- bearing and      exterior walls, and roof); (ii) the Common Areas; and (iii) the electrical      and plumbing systems located outside the Leased Premises which service the      Building. Additionally, to the extent that the Building contains central      heating, ventilating and or air conditioning systems located outside the      Leased Premises and designed to service, and then servicing, more than a      single tenant within the Building, (“Common HVAC”), Landlord shall      maintain in good operating condition and repair such Common HVAC equipment      and systems. |
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| 5.2 | SERVICES      AND UTILITIES: The parties shall have the following responsibilities and      obligations with respect to obtaining and paying the cost of providing the      following utilities and other services to the Leased    Premises. |
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|   | A. | Gas      and Electric: Tenant shall arrange, at its sole expense and in its own      name, for the supply of gas and electricity to the Leased Premises. In the      event that such services are not separately metered, Tenant shall, at its      sole expense, cause such meters to be installed. Tenant shall be      responsible for determining if the local supplier of gas and/or      electricity can supply the needs of Tenant and whether or not the existing      gas and/or electrical distribution systems within the Building and the      Leased Premises are adequate for Tenant’s needs. Tenant shall pay all      charges for gas and electricity as so supplied to the Leased      Premises. |
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|   | B. | Water:      Landlord shall provide the Leased Premises with water and Tenant shall      pay, as Additional Rent, the cost to Landlord of providing water to the      Leased Premises; provided, however, to the      extent that Landlord shall be providing water to the Leased Premises for      the use of more than a single tenant, Tenant shall be responsible to pay      as Additional Rent only so much of the cost to Landlord of providing water      to the Leased Premises as is related to Tenant’s water usage. The costs of      Tenant’s water usage shall include any costs to Landlord in keeping      account of such usage and all governmental fees, public charges or the      like (such as sewer usage fees) attributable to or based upon      usage. |
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|   | C. | Security      Services: Tenant acknowledges that Landlord is not responsible for the      security of the Leased Premises or the protection of Tenant’s property or      Tenant’s employees, invitees or contractors, and that to the extent Tenant      determines that such security or protection services are advisable or      necessary, Tenant shall arrange for an pay the costs of providing      same. |
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|   | D. | Trash      Disposal: Landlord will provide one trash bin or each building within the      Project for use by the tenants of such building for disposal of general      office waste only and for no other purpose. In no event shall Tenant use      the trash bins provided by Landlord for disposal of any of its industrial      waste, garbage or trash, and in no event shall Landlord be required to      provide extra bins for such purpose to because other tenants of the      Building or the Project are using such bins for such    purpose. |
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|   | Initial      _____ _____ _____ |
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| 5.3 | ENERGY      AND RESOURCE CONSUMPTION: Landlord may voluntarily cooperate in a      reasonable manner with the efforts to governmental agencies and/or utility      suppliers in reducing energy or other resource consumption within the      Project. Tenant shall not be entitled to terminate this Lease or to any      reduction in or abatement of rent by reason of such compliance or      cooperation. Tenant agrees at all times to cooperate fully with Landlord      and to abide by all reasonable rules established by Landlord (i) in order      to maximize the efficient operation of the electrical, heating,      ventilating and air conditioning systems and all other energy or other      resource consumption systems within the Project and/or (ii) in order to      comply with the requirements and recommendations of utility suppliers and      governmental agencies regulating the consumption of energy and/or other      resources. |
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| 5.4 | LIMITATION      OF LANDLORD’S LIABILITY: Landlord shall not be liable to Tenant for injury      to Tenant, its employees, agents, invitees or contractors, damage to      Tenant’s property or loss of Tenant’s business or profits, nor shall      Tenant be entitled to terminate this Lease or to any reduction in or      abatement of rent by reason of (i) Landlord’s failure to perform any      maintenance or repairs to the Project until Tenant shall have first      notified Landlord, in writing, of the need for such maintenance or      repairs, and then only after Landlord shall have had a reasonable period      of time following its receipt of such notice within which to perform such      maintenance or repairs, or (ii) any failure, interruption, rationing or      other curtailment in the supply of water, electric current, gas or other      utility service to the Leased Premises, the Building or the Project from      whatever cause (other than Landlord’s gross negligence or willful      misconduct), or (iii) the unauthorized intrusion or entry into the Leased      Premises by third parties (other thanLandlord). |
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| 6.1 | BY      TENANT: Tenant shall not make any alterations to or modifications of the      Leased Premises or construct any improvements to or within the Leased      Premises without Landlord’s prior written approval, and then not until      Landlord shall have first approved, in writing, the plans and      specifications therefore, which approval shall not be unreasonably      withheld. All such modifications, alterations or improvements, once so      approved, shall be made, constructed or installed by Tenant at Tenant’s      expense, using a licensed contractor first approved by Landlord, in      substantial compliance with the Landlord-approved plans and specifications      therefore. All work undertaken by Tenant shall be done in accordance with      all Laws and in good and workmanlike manner using new materials of good      quality. Tenant shall not commence the making of any such modifications or      alterations or the construction of any such improvements until (i) all      required governmental approvals and permits shall have been obtained, (ii)      all requirements regarding insurance imposed by this Lease have been      satisfied, (iii) Tenant shall have given Landlord at least five business      days prior to written notice of its intention to commence such work so      that Landlord may post and file notices of non-responsibility, and (iv) if      requested by Landlord, Tenant shall have obtained contingent liability and      broad form builder’s risk insurance in an amount satisfactory to Landlord      to cover any perils relating the proposed work not covered by insurance      carried by Tenant pursuant to Article 9. In no event shall Tenant make any      modifications, alterations or improvements to the Common Areas or any      areas outside the Leased Premises. As used in the Article, the term      “modifications”, alterations and/or improvements” shall include, without      limitation, the installation of additional electrical outlets, overhead      lighting fixtures, drains, sinks, partitions, doorways, or the      like. |
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|   | Initial      _____ _____ _____ |
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| 6.2 | OWNERSHIP      OF IMPROVEMENTS: All modifications, alternations and improvements made or      added to the Leased Premises by Tenant (other than Tenant’s inventory,      equipment, movable furniture, wall decorations and trade fixtures) shall      be deemed real property and a part of the Leased Premises, but shall      remain the property of Tenant during the Lease Term. Any such      modifications, alterations or improvements, once completed, shall not be      altered or removed from the Leased Premises during the Lease Term without      Landlord’s written approval first obtained in accordance with the      provisions of Paragraph 6.1 above. At the expiration or sooner termination      of this Lease, all such modifications, alterations and improvements (other      than Tenant’s inventory, equipment, movable furniture, wall decorations      and trade fixtures) shall automatically become the property of the      Landlord and shall be surrendered to Landlord as part of the Leased      Premises as required pursuant to Article unless Landlord shall require      Tenant to remove any of such modifications, alterations or improvements in      accordance with the Provision of Article 2, in which case Tenant shall so      remove same. Landlord shall have no obligation to reimburse to Tenant all      or any portion of the cost or value of any such modifications, alterations      or improvements so surrendered to Landlord. All modifications, alterations      or improvements which are installed or constructed on or attached to the      Leased Premises by Landlord at Landlord’s expense shall be deemed real      property and a part of the Leased Premises and shall be the property of      Landlord. All lighting, plumbing, electrical, heating, ventilating and air      conditioning fixtures, partitioning, window coverings, wall coverings and      floor coverings installed by Tenant shall be deemed improvements to the      Leased Premises and not trade fixtures of  Tenant. |
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| 6.3 | ALTERATIONS      REQUIRED BY LAW: Tenant shall make all modifications, alterations, and      improvements to the Leased Premises, at its sole cost, that are required      by Law because of (i) Tenant’s use or occupancy of the Leased Premises,      (ii) Tenant’s application for any permit or governmental approval, or      (iii) Tenant’s making of any modifications, alterations, or improvements      to or within the Leased Premises. |
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| 6.4 | LIENS:      Tenant shall keep the Leased Premises, the Building and the Project free      from any liens and shall pay value due all bills arising out of any work      performed, materials furnished, or obligations incurred by Tenant, its      agents, employees or contractors related to the Leased Premises, if any      such claim of lien is recorded against Tenant’s interest in this Lease,      the Leased Premises, the Building or the Project, Tenant shall bond      against, discharge or otherwise cause such lien to be entirely released      within ten days after the same has been so  recorded. |
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| 7.1 | BY      TENANT: Tenant shall neither assign this Lease nor sublet the Lease      Premises without obtaining the written consent of the Landlord to do so,      however, that Landlord shall not arbitrarily or unreasonably refuse to      grant consent to such assignment or subletting, and provided further that      a consent to one assignment or subletting by Landlord shall not be deemed      a consent to any subsequent assignment or subletting. Any assignment or      subletting without the consent of the Landlord shall be void and shall, at      the option of the Landlord, terminate this Lease. The acceptance of rent      by Landlord from any person or entity other than the Tenant, or the      acceptance of rent by Landlord from Tenant with knowledge of a violation      of the provisions of this paragraph, shall not be deemed a waiver by      Landlord of any provision of this Article or this Lease or to be a consent      to any assignment or subletting byTenant. |
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| 7.2 | MERGER      OR REORGANIZATION: If Tenant is a corporation, any dissolution, merger,      consolidation or other reorganization of Tenant, or the sale or other      transfer in the aggregate over the Lease Term of a controlling percentage      of the capital stock of Tenant shall not be deemed a voluntary assignment      of Tenant’s interest in this Lease. However, should Tenant dissolve,      merge, consolidate, or otherwise reorganize, Tenant shall notify Landlord      in writing of the proposed change in its status fifteen (15) days prior to      the effective date of such dissolution or  reorganization. |
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|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

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| 7.3 | LANDLORD’S      CONSENT: If Tenant shall desire to assign its interest under this Lease or      to sublet the Leased Premises, Tenant must first notify Landlord, in      writing, of its intent to so assign or sublet, specifying in detail the      terms of such assignment or subletting, including, by way of illustration      but not of limitation, the name of the proposed assignee or sublessee, the      proposed assignee’s sublessee’s intended use of the leased premises, a      current financial statement of such proposed assignee or sublessee, and      the form of documents to be used in effectuating such assignment or      subletting. Land lord shall have a period of fifteen (15) days following      receipt of such notice to either (i) consent to such assignment or      subletting, or (ii) refuse to consent to such requested assignment or      subletting, provided that such consent shall not be unreasonably or      arbitrarily refused. During said fifteen (15) day period, Tenant covenants      and agrees to supply Landlord, upon request, all necessary or relevant      information which Landlord may reasonably request respecting such proposed      assignment or subletting and/or the proposed assignee or      sublessee. |
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| 7.4 | CONDITIONS      TO LANDLORD’S CONSENT: If Landlord elects to consent to such requested      assignment or subletting, such consent shall be expressly conditioned upon      the occurrence of each of the conditions set forth below. Any purported      assignment or subletting made prior to the full and complete satisfaction      of each of the following conditions shall be void and shall, at the option      of Landlord, constitute a material default of this Lease permitting      Landlord to terminate this Lease unless such default is cured by Tenant      satisfying each condition within five (5) days of receipt of written      notice of the default. The conditions are as  follows: |
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|   | A. | Landlord      having approved in form and substance the assignment or sublease      agreement, which approval shall not be unreasonably    withheld. |
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|   | B. | Each      such sublessee or assignee having agreed in writing satisfactory to      Landlord to assume, to be bound by, and to perform the obligations of this      Lease to be performed by Tenant. |
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|   | C. | Tenant      having delivered to Landlord a complete and fully executed duplicate      original of each sublease agreement or assignment    agreement. |
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|   | D. | Tenant      and Tenant’s sublessee shall have entered into a written agreement with      and for the benefit of Landlord satisfactory to Landlord whereby Tenant      and Tenant’s sublessee jointly agree to pay to Landlord one hundred      percent of all excess rentals to be paid by such sublessee as and when      such excess rentals are so paid. |
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| 7.5 | EXCESS      RENTALS DEFINED: The term “excess rentals” shall mean all consideration to      be paid by the sublessee to Tenant or to any other on Tenant’s behalf or      for Tenant’s benefit for the sublease of the Leased Premises in excess of      the rent due Landlord under the terms of this Lease for the same period,      less any commissions paid by Tenant to a licensed real estate broker for      arranging such sublease. Tenant agrees that the portion of any excess      rentals arising from any subletting by Tenant, which is to be paid to      Landlord pursuant to this Article, now is and shall then be the property      of Landlord and not the property ofTenant. |
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| 7.6 | EFFECT      OF LANDLORD’S CONSENT: No assignment or subletting, even with the consent      of Landlord, shall relieve Tenant of it’s primary obligation to pay rent      and to perform all of the other obligations to be performed by Tenant      hereunder. Consent by Landlord to one or more assignments or sublettings      by Tenant shall not be deemed to be a consent to any subsequent assignment      or subletting. |
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|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

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| 7.7 | GOOD      FAITH: The rights granted to Tenant by this Article are granted in      consideration of Tenant’s express covenant that all pertinent allocations      which are made by Tenant between the value of this Lease and the value of      any of Tenant’s personal property which may be conveyed or leased      generally concurrently with and which may reasonably be considered a part      of the same transaction as the permitted assignment or subletting shall be      made fairly, honestly and in good faith. If Tenant shall breach this      Covenant of Good Faith, Landlord may immediately declare Tenant to be in      default under the terms of this Lease and terminate this Lease and/or      exercise any other rights and remedies Landlord would have under the terms      of this Lease in the case of a material default by Tenant under this      Lease. |
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| 7.8 | EFFECT      OF LANDLORD’S CONSENT: No subletting, assignment or encumbrance, even with      the consent of Landlord shall relieve Tenant of its personal and primary      obligation to pay rent and to perform all of the other obligations to be      performed by Tenant hereunder. Consent by Landlord to one or more      assignments or encumbrances of Tenant’s interest in this Lease or to one      or more subletting of the Leased Premises shall not be deemed to be a      consent to any subsequent assignment, encumbrance or subletting. If      Landlord shall have been ordered by a court of competent jurisdiction to      consent to a requested assignment or subletting, or such an assignment or      subletting shall have been ordered over the objection of Landlord, such      assignment or subletting shall not be binding between the assignee (or      sub-lessee) and Landlord until such a time as all conditions set forth in      Paragraph 7.4 above have been fully satisfied (to the extent not then      satisfied) by the assignee or sub-lessee, including, without limitation,      the payment to Landlord of all agreed assignment considerations and/or      excess rentals then due Landlord. |
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| 8.1 | LIMITATION      ON LANDLORD’S LIABILITY AND RELEASE: Landlord shall not be liable to      Tenant for, and Tenant hereby releases Landlord and its partners and      officers from, any and all liability, whether in contract, tort or any      other basis, for any injury to or any damage sustained by Tenant, its      agents, employees, contractors or invitees; any damage to Tenant’s      property; or any loss to Tenant’s business, loss of Tenant’s profits or      other financial loss of Tenant resulting from or attributable to the      condition of, the management of, the maintenance of, or the protection of      the Leased Premises, the Building, the Project or the Common Areas,      including, without limitation, any such injury, damage or loss resulting      from (i) the failure, interruption, rationing or other curtailment or      cessation in the supply of electricity, water, gas or other utility      service to the Project, the Building or the Leased Premises; (ii) the      vandalism or forcible entry into the Building or the Leased Premises;      (iii) the penetration of water into or onto any portion of the Leased      Premises through roof leaks or otherwise; (iv) the failure to provide      security and/or adequate lighting in or about the Project, the Building or      the Leased Premises; (v) the existence of any design or construction      defects within the Project, the Building or the Leased Premises; (vi) the      failure of any mechanical systems to function properly (such as the HVAC      systems); or (vii) the blockage of access to any portion of the Project,      the Building or the Leased Premises, except to the extent such damage was      proximately caused by Landlord’s active negligence, willful misconduct, or      Landlord’s failure to perform an obligation expressly undertaken pursuant      to this Lease but only if Tenant shall have given Landlord prior written      notice to perform such obligation and Landlord shall have failed to      perform such obligation within a reasonable period of time following      receipt of written notice from Tenant to so perform such obligation. In      this regard, Tenant acknowledges that it is fully apprised of the      provisions of Law relating to releases, and particularly to those      provisions contained in Section 1542 of the California Civil Code, which      read as follows: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 8.2 | TENANT’S      INDEMNIFICATION OF LANDLORD: Tenant shall defend, with counsel      satisfactory to Landlord, any claims made or legal actions filed or      threatened by third parties against Landlord with respect to the death,      bodily injury, personal injury, damage to property or interference with      contractual or property rights suffered by any third party (including      other tenants within the Project) which (i) occurred within the Leased      Premises or (ii) resulted from Tenant’s use or occupancy of the Leased      Premises or the Common Areas or (iii) resulted from Tenant’s activities in      or about the Leased Premises, the Building or the Project, and Tenant      shall indemnify and hold Landlord, Landlord’s principals, employees and      agents harmless from any loss, including loss of rents by reason of vacant      space which otherwise would have been leased but for such activities,      liability, penalties, or expense whatsoever (including any legal fees      incurred by Landlord with respect to defending such claims) resulting      therefrom, except to the extent proximately caused by the active      negligence or willful misconduct of Landlord. This indemnity agreement      shall survive until the latter to occur of (i) the date of the expiration,      or sooner termination, of this Lease, or (ii) the date Tenant actually      vacates the Leased Premises. Notwithstanding the foregoing, Tenant shall      be under no duty to indemnify and hold Landlord harmless, nor defend      Landlord, against any liability, claims, or damages arising because of      Landlord’s failure to make any repairs required by this Lease or to take      any action required by this Lease or to take any action required of      Landlord by this Lease, provided that the Landlord has been properly      notified by Tenant of the required repair or action. The term “properly      notified” shall mean notice as prescribed in Paragraph 13.10 of this      Lease. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1 | TENANT’S      INSURANCE: Tenant shall maintain insurance complying with all of the      following: |
|-----|----------------------------------------------------------------------------------------------------------|

|   | A. | Tenant      shall procure pay for and keep in full force and effect, at all times      during the Lease Term, thefollowing: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Comprehensive      general liability insurance insuring Tenant against liability for personal      injury, bodily injury, death and damage to property occurring within the      Leased Premises, or resulting from Tenant’s use or occupancy of the Leased      Premises or the Common Areas, or resulting from Tenant’s activities in or      about the Leased Premises, with combined single limit coverage of not less      than the amount of Tenant’s Required Liability Coverage (as set forth in      Article 1), which insurance shall contain a “broad form liability”      endorsement insuring Tenant’s performance of Tenant’s obligation to      indemnify Landlord as contained in Article8.2. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Fire      and property damage insurance in so-called “fire and extended coverage”      form insuring Tenant against loss from physical damage to Tenant’s      personal property, inventory, trade fixtures and improvements within the      Leased Premises with coverage for the full actual replacement cost      thereof: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Pressure      vessel insurance, if applicable; |
|--------|-----|------------------------------------------------|

----

|   | (4) | Product      liability insurance (including, without limitation, if food and/or      beverages are distributed, sold and/or consumed within the Leased      Premises, to the extent obtainable, coverage for liability arising out of      the distribution, sale or consumption of food and/or beverages (including      alcoholic beverages, if applicable) at the Leased Premises) for not less      than Tenant’s Required Liability Coverage (as set forth in Article      1); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Workers’      compensation insurance and any other employee benefit insurance sufficient      to comply with all Laws; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | With      respect to making of alterations or the construction of improvements or      the like undertaken by Tenant, contingent liability and builder’s risk      insurance, in an amount and with coverage satisfactory to      Landlord. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | Each      policy of liability insurance required to be carried by Tenant pursuant to      this Paragraph or actually carried by Tenant with respect to the Leased      Premises (i) shall, except with respect to insurance required by      Subparagraph A (6) above, name Landlord, and such others as are designated      by Landlord, as additional insured; (ii) shall be primary insurance      providing that the insurer shall be liable for the full amount of the      loss, up to and including the total amount of liability set forth in the      declaration of coverage, without the right of contribution from or prior      payment by any other insurance coverage of Landlord; (iii) shall be in a      form satisfactory to Landlord; (iv) shall be carried with companies      reasonably acceptable to Landlord; (v) shall provide that such policy      shall not be subject to cancellation, lapse or change except after at      least thirty days prior written notice to Landlord; and (vi) shall contain      a so-called “severability” or “cross liability” endorsement. Each policy      of property insurance maintained by tenant with respect to the Leased      Premises or any property therein (i) shall provide that such policy shall      not be subject to cancellation, lapse or change except after at least      thirty days prior written notice to Landlord and (ii) shall contain a      waiver and/or a permission to waive by the insurer of any right of      subrogation against Landlord, its principals, employees, agents and      contractors, which might arise by reason of any payment under such policy      or by reason of any act or omission of Landlord, its principals,      employees, agents or contractors. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | Prior      to the time Tenant or any of its contractors enters the Leased Premises,      Tenant shall deliver to the Landlord, with respect to each policy of      insurance required to be carried by Tenant pursuant to this Article, a      copy of such policy (appropriately authenticated by the insurer as having      been issued, premium paid, providing the coverage required by this      Paragraph and containing the provisions specified herein. With respect to      each renewal or replacement of any such insurance, the requirements of      this Paragraph must be complied with not less than thirty days prior to      the expiration or cancellation of the policy being renewed or replaced.      Landlord may, at any time and from time to time, inspect and/or copy any      and all insurance policies required to be carried by Tenant pursuant to      this Article. If Landlord’s Lender, insurance broker or advisor or counsel      reasonably determines at any time that the amount of coverage set forth in      Paragraph 9.1A for any policy of insurance Tenant is required to carry      pursuant to this Article is not adequate, then Tenant shall increase the      amount of coverage for such insurance to such greater amount as Landlord’s      Lender, insurance broker or advisor or counsel reasonably deems adequate;      provided, however, such increased level of coverage may not exceed the      level of coverage for such insurance commonly carried by comparable      businesses similarly situated and operating under similar      circumstances. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9.2 | LANDLORD’S      INSURANCE: With respect to insurance maintained by    Landlord: |
|-----|---------------------------------------------------------------------------------------|

|   | A. | Landlord      shall maintain, as the minimum coverage required of it by this Lease, fire      and property damage insurance in so-called “fire and extended coverage”      form insuring Landlord (and such others as Landlord may designate) against      loss from physical damage to the Building with coverage of not less than      ninety percent of the full actual replacement cost thereof and against      loss of rents for a period of not less than six months. Such fire and      property damage insurance, at Landlord’s election but without any      requirement on Landlord’s behalf to do so, (i) may be written in so-called      “all risk” form, excluding only those perils commonly excluded from such      coverage by Landlord’s then property damage insurer; (ii) may provide      coverage for physical damage to the improvements so insured for up to the      entire full actual replacement cost thereof; (iii) may be endorsed to      cover loss or damage caused by any additional perils against which      Landlord may elect to insure, including earthquake and/or flood; (iv) may      provide coverage for loss of rents for a period of up to twelve months;      and (v) may contain “deductibles” not exceeding One Thousand Dollars per      occurrence (or up to five percent of the Building’s replacement value in      the case of earthquake and/or flood insurance). Landlord shall not be      required to cause such insurance to cover any of Tenant’s personal      property, inventory and trade fixtures, or any modifications, alterations      or improvements made or constructed by Tenant to or within the Leased      Premises. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | Landlord      shall maintain comprehensive general liability insurance insuring Landlord      (and such others as are designated by Landlord) against liability for      personal injury, bodily injury, death, and damage to property occurring      in, on or about, or resulting from the use or occupancy of the Project, or      any portion thereof, with combined single limit coverage of at least Two      Million Dollars. Landlord may carry such greater coverage as Landlord or      Landlord’s Lender, insurance broker or advisor or counsel may from time to      time determine is reasonably necessary for the adequate protection of      Landlord and the Project. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | Landlord      may maintain any other insurance, which in the opinion of its insurance      broker or advisor or legal counsel is prudent to carry under the given      circumstances. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3 | MUTUAL      WAIVER OF SUBROGATION: Landlord hereby releases Tenant, and Tenant hereby      releases Landlord and its respective partners and officers, agents,      employees and servants, from any and all liability for loss, damage or      injury to the property of the other in or about the Leased Premises which      is caused by or results from a peril or event or happening which would be      covered by insurance required to be carried under the terms of this Lease,      or is covered by insurance actually carried and in force at the time of      the loss, by the party sustaining such loss; however, that such waiver      shall be effective only to the extent permitted by the insurance covering      such loss and to the extent such insurance is not prejudiced      thereby. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.1 | LANDLORD’S      DUTY TO RESTORE: If the Leased Premises are damaged by any peril after the      Effective Date of this Lease, Landlord shall restore the Leased Premises,      as and when required by this Paragraph, unless this Lease is terminated by      Landlord pursuant to Paragraph 10.2 or by Tenant pursuant to Paragraph      10.3. All insurance proceeds available from the fire and property damage      insurance carried by Landlord shall be paid to and become the property of      Landlord. If this Lease is terminated pursuant to either Paragraph 10.2 or      10.3, all insurance proceeds available from insurance carried by Tenant      which cover loss to property that is Landlord’s property or would become      Landlord’s property on termination of this Lease shall be paid to and      become the property of Landlord, and the remainder of such proceeds shall      be paid to and become the property of Tenant. If this Lease is not      terminated pursuant to either Paragraph 10.2 or 10.3, all insurance      proceeds available from insurance carried by Tenant which cover loss to      property that is Landlord’s property shall be paid to and become property      of Landlord, and all proceeds available which cover loss to property which      would become the property of Landlord upon the termination of this Lease      shall be paid to and remain the property of Tenant. If this Lease is not      so terminated, then upon receipt of the insurance proceeds (if the loss is      covered by insurance) and the issuance of all necessary governmental      permits, Landlord shall commence and diligently prosecute to completion      the restoration of the Leased Premises, to the extent then allowed by Law,      to substantially the same condition in which the Leased Premises existed      as of the Lease Commencement Date. Landlord’s obligation to restore shall      be limited to the Leased Premises and interior improvements constructed by      Landlord. Landlord shall have no obligation to restore any other      improvements to the Leased Premises or any of Tenant’s personal property,      inventory, trade fixtures, and other improvements constructed by Tenant to      like or similar condition as existed at the time of such damage or      destruction. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | LANDLORD’S      RIGHT TO TERMINATE: Landlord shall have the option to terminate this Lease      in the event any of the following occurs, which option may be exercised      only by delivery to Tenant of a written notice of election to terminate      within thirty days after the date of such damage or      destruction: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A. | The      Building is damaged by any peril covered by valid collectible insurance      actually carried by Landlord and in force at the time of such damage or      destruction (an “insured peril”) to such an extent that the estimated cost      to restore the Building exceeds the lesser of (i) the insurance proceeds      available from insurance actually carried by Landlord, or (ii)      seventy-five percent of the then actual replacement cost      thereof: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | The      Building is damaged by an uninsured peril, which peril Landlord was      required to insure against pursuant to the provisions of Article 9 of this      Lease, to such an extent that the estimated cost to restore the Building      exceeds the lesser of (i) the insurance proceeds which would have been      available had Landlord carried such required insurance, or (ii)      seventy-five percent of the then actual replacement cost      thereof; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | The      Building is damaged by an uninsured peril, which peril Landlord was not      required to insure against pursuant to the provisions of Article 9 of this      Lease, to any extent. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | D. | The      Building is damaged by any peril and, because of the Laws then in force,      (i) may not be restored at reasonable cost as required by Paragraph 10.1      above, or (ii) may not be used for the same use being made thereof before      such damage, whether or not restored as required by this      Article. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

----

| 10.3 | TENANT’S      RIGHT TO TERMINATE: If the Leased Premises are damaged by any peril and      Landlord does not elect to terminate this Lease or is not entitled to      terminate this Lease pursuant to this Article, then as soon as reasonably      practicable, Landlord shall furnish Tenant with the written opinion of      Landlord’s architect or construction consultant as to when the restoration      work required of Landlord may be complete. Tenant shall have the option to      terminate this Lease in the event any of the following occurs, which      option may be exercised in the case of A or B below only by delivery to      Landlord of a written notice of election to terminate within seven days      after Tenant receives from Landlord the estimate of the time needed to      complete such restoration: |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A. | The      Leased Premises are damaged by any peril and, in the reasonable opinion of      Landlord’s architect or construction consultant, the restoration of the      Leases Premises cannot be substantially completed within nine months after      the date of such damage; or |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | The      Leased Premises are damaged by any peril within nine months of the last      day of the Lease Term and, in the reasonable opinion of Landlord’s      architect or construction consultant, the restoration of the Leased      Premises cannot be substantially completed within ninety days after the      date such restoration is commenced;or |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | Landlord      does not complete the restoration of the Leased Premises within nine      months from the date of the damage, provided that such nine-month period      of time shall be extended for such number of days as Landlord may be      delayed by reason of Force Majeure. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | TENANT’S      WAIVER: Landlord and Tenant agree that the provisions of Paragraph 10.3      above, captioned “Tenant’s Right to Terminate”, are intended to supersede      and replace the provisions contained in California Civil Code, Section      1932, Subdivision 2, and California Civil Code Section 1934, and      accordingly, Tenant hereby waives the provisions of said Civil Code      Sections and the provisions of any successor Code Sections or similar Laws      hereinafter enacted. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5 | ABATEMENT      OF RENT: In the event of damage to the Leased Premises, which does not      result in the termination of this Lease, the Base Monthly Rent (and any      Additional Rent) shall be temporarily abated during the period of      restoration in proportion to the degree to which Tenant’s use of the      Leased Premises is impaired by suchdamage. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.1 | LANDLORD’S      RIGHT TO TERMINATE: Subject to Paragraph 11.3, Landlord shall have the      option to terminate this Lease if, as a result of a taking by means of the      exercise of the power of eminent domain (including inverse condemnation      and/or voluntary sale or transfer by Landlord to an entity having the      power of eminent domain under threat of condemnation), (i) all or any part      of the Leased Premises is so taken, (ii) more than thirty-three and      one-third percent of the Building’s leasable area is so taken, (iii) more      than thirty-three and one-third percent of the Common Area is so taken, or      (iv) because of the Laws then in force, the Leased Premises may not be      used for the same use being made thereof before such taking, whether or      not restored as required by Paragraph 11.4 below. Any such option to      terminate by Landlord must be exercisable within a reasonable period of      time, to be effective as of the date of possession is taken by the      condemner. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.2 | TENANT’S      RIGHT TO TERMINATE: Subject to Paragraph 11.3, Tenant shall have the      option to terminate this Lease, if, as a result of any taking by means of      the exercise of the power of eminent domain (including inverse      condemnation and/or a voluntary sale or transfer by Landlord to an entity      having the power of eminent domain under threat of condemnation), (i) all      of the Leased Premises is so taken, (ii) thirty-three and one-third      percent or more of the Leased Premises is so taken and the part of the      Leased Premises that remains cannot, within a reasonable period of time,      be made reasonably suitable for the continued operation of the Tenant’s      business, or (iii) there is a taking of a portion of the Common Area and,      as a result of such taking, Landlord cannot provide parking spaces within      the Project (or within a reasonable distance therefrom) equal in number to      at least sixty-six and two-thirds percent of Tenant’s Number of Parking      Spaces (as set forth in Article 1), whether by rearrangement of the      remaining parking areas in the Common Area (including, if Landlord elects,      construction of multi-deck parking structures or re-striping for compact      cars where permitted by Law), or by providing alternative parking      facilities on other land within reasonable walking distance of the Leased      Premises. Tenant must exercise such option within a reasonable period of      time, to be effective on the later to occur of (i) the date that      possession of that portion of the Common Area or the Leased Premises that      is condemned is taken by condemner or (ii) the date Tenant vacates the      Leased Premises. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | TEMPORARY      TAKING: If any portion of the Leased Premises is temporarily taken for one      year or less, this Lease shall remain in effect. If any portion of the      Leased Premises is temporarily taken for a period which either exceeds one      year or which extends beyond the natural expiration of the Lease Term,      then Landlord and Tenant shall each independently have the option to      terminate this Lease, effective on the date possession is taken by the      condemner. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.4 | RESTORATION      AND ABATEMENT OF RENT: If any part of the Leased Premises is taken by      condemnation and this Lease is not terminated, then Landlord shall repair      any damage occasioned thereby to the remainder of the Leased Premises to a      condition reasonably suitable for Tenant’s continued operations and      otherwise, to the extent practicable, in the manner and to the extent      provided in Paragraph 10.1. As of the date possession is taken by the      condemning authority, (i) the Base Monthly Rent shall be reduced in the      same proportion that the area of that part of the Leased Premises so taken      (less any addition to the area of the Leased Premises by reason of any      reconstruction) bears to the area of the Leased Premises immediately prior      to such taking, and (ii) Tenant’s Proportionate Share shall be      appropriately adjusted. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.5 | DIVISION      OF CONDEMNATION AWARD: Any award made for any condemnation of the Project,      the Building, the Common Areas or the Leased Premises, or any portion      thereof, shall belong to and be paid to Landlord, and Tenant hereby      assigns to Landlord all of its right, title and interest in any such      award; provided, however, that Tenant shall be entitled to receive any      condemnation award that is made directly to Tenant (i) for the taking of      personal property, inventory or trade fixtures belonging to Tenant (ii)      for the interruption of Tenant’s business or its moving costs, (iii) for      loss of Tenant’s goodwill, or (iv) for any temporary taking where this      Lease is not terminated as a result of such taking. The rights of Landlord      and Tenant regarding any condemnation shall be determined as provided in      this Article, and each party hereby waives the provisions of Section      1265.130 of the California Code of Civil Procedure, and the provisions of      any similar law hereinafter enacted, allowing either party to petition the      Superior Court to terminate this Lease and/or allocating condemnation      awards between Landlord and Tenant in the event of a taking of the Leased      Premises. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.1 | EVENTS      OF TENANTS DEFAULTS: Tenant shall be in default of its obligations under      this Lease if any of the following eventsoccur: |
|------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | A. | Tenant      has failed to pay Base Monthly Rent or any Additional Rent within five (5)      days after written notice from Landlord that it is due (provided, however,      that Landlord shall not be required to give more than two (2) such notices      in any twelve (12) consecutive month period, after which Tenant shall be      in default if it fails to pay any rent or other charge when due);      or |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | Tenant      shall have done or permitted to have been done any act, use or thing in      its use, occupancy or possession of the Leased Premises or in its use of      the Common Areas which is prohibited by the terms of this Lease and,      within thirty (30) days after written notice from Landlord specifying the      nature of the default with reasonable particularity has failed to cure      such default (provided, however, that if the default is of such a nature      that it cannot be completely remedied within such thirty (30) day period,      this provision shall be complied with if Tenant begins to cure the default      within the thirty (30) day period and thereafter proceeds with due      diligence and in good faith to effect the cure as soon as practicable);      or |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | Tenant      has failed to perform any other term or provision of this Lease within      thirty (30) days after written notice from Landlord specifying the nature      of the default with reasonable particularity (provided, however, that if      the default is of such a nature that it cannot be completely remedied      within such thirty (30) day period, this provision shall be complied with      if Tenant begins to cure the default within the thirty (30) day period and      thereafter proceeds with due diligence and in good faith to effect the      cure as soon as practicable); or |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | D. | Tenant      shall have sublet the Leased Premises or assigned or encumbered its      interest in this Lease in violation of the provisions contained in Article      7, whether voluntarily or by operation of Law;  or |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | E. | Tenant      shall have abandoned the Leased Premises;or |
|--------|----|---------------------------------------------------------|

|   | F. | Tenant      or any Guarantor of this Lease shall have permitted or suffered the      sequestration or attachment of, or execution on, or the appointment of a      custodian or receiver with respect to, all or any substantial part of the      property or assets of Tenant (or such Guarantor) or any property or asset      essential to the conduct of Tenant’s (or such Guarantor’s) business, and      Tenant (or such Guarantor) shall have failed to obtain return or release      of the same within thirty days thereafter, or prior to sale pursuant to      such sequestration, attachment or levy, whichever is earlier;      or |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | G. | Tenant      or any Guarantor of this Lease shall have made a general assignment of all      or a substantial part of its assets for the benefit of creditors;      or |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | H. | Tenant      or any Guarantor of this Lease shall have allowed (or sought) to have      entered against it a decree or order which: (i) grants or constitutes an      order for relief, appointment of a trustee, or confirmation of a      reorganization plan under the bankruptcy laws of the United States; (ii)      approves as properly filed a petition seeking liquidation or      reorganization under said bankruptcy laws or any other debtor’s relief law      or similar statute of the United States or any state thereof; or (iii)      otherwise directs the winding up or liquidation of Tenant; provided,      however, if any decree or order was entered without Tenant’s consent or      over Tenant’s objection, Landlord may not terminate this Lease pursuant to      this Subparagraph if such decree or order is rescinded or reversed within      thirty days after its originalentry. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | I. | Tenant      or any Guarantor of this Lease shall have availed itself of the protection      of any debtor’s relief law, moratorium law or other similar Law which does      not require the prior entry of a decree or  order. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

----

| 12.2 | LANDLORD’S      REMEDIES: In the event of any default by Tenant, and without limiting      Landlord’s right to indemnification as provided in Article 8.2, Landlord      shall have the following remedies, in addition to all other rights and      remedies provided by Law or otherwise provided in this Lease, to which      Landlord may resort cumulatively, or in the  alternative: |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A. | Landlord      may, at Landlord’s election, keep this Lease in effect and enforce, by an      action at law or in equity, all of its rights and remedies under this      Lease including, without limitation, (i) the right to recover the rent and      other sums as they become due by appropriate legal action, (ii) the right      to make payments required of Tenant, or perform Tenant’s obligations and      be reimbursed by Tenant for the cost thereof with interest at the then      maximum rate of interest not prohibited by Law from the date the sum is      paid by Landlord until Landlord is reimbursed by Tenant, and (iii) the      remedies of injunctive relief and specific performance to prevent Tenant      from violating the terms of this Lease and/or to compel Tenant to perform      its obligations under this Lease, as the case may  be. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | Landlord      may, at Landlord’s election, terminate this Lease by giving Tenant written      notice of termination in which event this Lease shall terminate on the      date set forth for termination in such notice. Any termination under this      Subparagraph shall not relieve Tenant from its obligation to pay Landlord      all Base Monthly Rent or Additional Rent then or thereafter due, or any      other sums due or thereafter accruing to Landlord, or from any claim      against Tenant for damages previously accrued or then or thereafter      accruing. In no event shall any one or more of the following actions by      Landlord, in the absence of a written election by Landlord to terminate      this Lease, constitute a termination of this  Lease: |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Appointment      of a receiver of keeper in order to protect Landlord’s interest      hereunder; |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (2) | Consent      to any subletting of the Leased Premises or assignment of this Lease by      Tenant, whether pursuant to the provisions hereof or otherwise;      or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Any      other action by Landlord or Landlord’s agents intended to mitigate the      adverse effects of any breach of this Lease by Tenant, including, without      limitation, any action taken to maintain and preserve the Leased Premises      or any action taken to re-let the Leased Premises, or any portion thereof,      for the account of Tenant and in the name of  Tenant. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | In      the event Tenant breaches this Lease and abandons the Leased Premises,      Landlord may terminate this Lease, but his Lease shall not terminate      unless Landlord gives Tenant written notice of termination. No act by or      on behalf of Landlord intended to mitigate the adverse effect of such      breach, including those described by Subparagraph B (1), (2) and (3)      immediately preceding, shall constitute a termination of Tenant’s right to      possession unless Landlord gives Tenant written notice of termination. If      Landlord does not terminate this Lease by giving written notice of      termination, Landlord may enforce all its rights and remedies under this      Lease, including the right to recover rent as it becomes due under this      Lease as provided in California Civil Code Section 1951.4, as in effect on      the Effective Date of this Lease. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | D. | In      the event Landlord terminates this Lease, Landlord shall be entitled, at      Landlord’s election, to damages in an amount as set forth in California      Civil Code Section 1951.2, as in effect on the Effective Date of this      Lease. For purposes of computing damages pursuant to said Section 1951.2,      an interest rate equal to the maximum rate of interest then not prohibited      by Law shall be used where permitted. Such damages shall include, without      limitation: |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Initial      _____ _____ _____ |
|--------|--------------------------------|

----

|   | (1) | The      worth at the time of award of the amount by which the unpaid rent for the      balance of the term after the time of award exceeds the amount of such      loss that Tenant proves could be reasonably avoided, computed by      discounting such amount at the discount rate of the Federal Reserve Bank      of San Francisco at the time of award plus one percent:  and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Any      other amount necessary to compensate Landlord for all detriment      proximately caused by Tenant’s failure to perform Tenant’s obligations      under this Lease, or which in the ordinary course of things would be      likely to result therefrom, including, without limitation, the following:      (i) expenses for cleaning, repairing or restoring the Leased Premises;      (ii) expenses for altering, remodeling or otherwise improving the Leased      Premises for the purpose of re-letting, including removal of existing      leasehold improvements and/or installation of additional leasehold      improvements (regardless of how the same is funded, including reduction of      rent, a direct payment or allowance to a new tenant, or otherwise); (iii)      broker’s fees, advertising costs and other expenses of re-letting the      Leased Premises; (iv) costs of carrying the Leased Premises, such as      taxes, insurance premiums, utility charges and security precautions; (v)      expenses incurred in removing, disposing of and/or storing any of Tenant’s      personal property, inventory or trade fixtures remaining therein; (vi)      attorney’s fees, expert witness fees, court costs and other reasonable      expenses incurred by Landlord (nut not limited to taxable costs) in      retaking possession of the Leased Premises, establishing damages      hereunder, and re-leasing the Leased Premises; and (vii) any other      expenses, costs or damages otherwise incurred or suffered as a result of      Tenant’s default. |
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| 12.3 | LANDLORD’S      DEFAULT AND TENANT’S REMEDIES: In the event Landlord fails to perform any      of its obligations under this Lease, Landlord shall nevertheless not be in      default under the terms of this Lease until such time as Tenant shall have      first given Landlord written notice specifying the nature of such failure      to perform its obligations, and then only after Landlord shall have had a      reasonable period of time following its receipt of such notice within      which to perform such obligations. In the event of Landlord’s default as      above set forth, then, and only then, Tenant shall have the following      remedies only: |
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|   | A. | Tenant      may then proceed in equity or at law to compel Landlord to perform its      obligations and/or recover damages proximately caused by such failure to      perform (except as and to the extent Tenant has waived its right to      damages as provided in this Lease). |
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|   | B. | Tenant,      at its option, may then cure any default of Landlord at Landlord’s cost.      If, pursuant to this Subparagraph, Tenant reasonably pays any sum to any      third party or does any act that requires the payment of any sum to any      third party at any time by reason of Landlord’s default, the sum paid by      Tenant shall be immediately due from Landlord to Tenant at the time Tenant      supplies Landlord with an invoice therefore (provided such invoice sets      forth and is accompanied by a written statement of Tenant setting forth in      reasonable detail the amount paid, the party to whom it was paid, the date      it was paid, and the reasons giving rise to such payment), together with      interest at twelve percent per annum from the date of such invoice until      Tenant is reimbursed by Landlord. |
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| 12.4 | LIMITATION      ON TENANT’S RECOURSE: If Landlord is a corporation, trust, partnership,      joint venture, unincorporated association, or other form of business      entity, Tenant agrees that (i) the obligations of Landlord under this      Lease shall not constitute personal obligations of the officers,      directors, trustees, partners, joint venturers, members, owners,      stockholders, or other principals of such business entity and (ii) Tenant      shall have recourse only to the assets of such business entity for the      satisfaction of such obligations and not against the assets of such      officers, directors, trustees, partners, joint venturers, members, owners,      stockholders or principals (other than to the extent of their interest in      the assets owned by such business entity). Additionally, if Landlord is a      partnership, then Tenant covenants andagrees: |
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|   | A. | No      partner of Landlord shall be sued or named as a part in any suit or action      brought by Tenant with respect to any alleged breach of this Lease (except      to the extent necessary to secure jurisdiction over the partnership and      then only of that sole purpose); |
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|   | B. | No      service of process shall be made against any partner of Landlord except      for the sole purpose of securing jurisdiction over the partnership;      and |
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|   | C. | No      writ of execution will ever be levied against the assets of any partner of      Landlord other than to the extent of his interest in the assets of the      partnership. Tenant further agrees that each of the foregoing covenants      and agreements shall be enforceable by Landlord and by any partner of      Landlord and shall be applicable to any actual or alleged      misrepresentation or nondisclosure made respecting this Lease or the      Leased Premises or any actual or alleged failure, default or breach of any      covenant or agreement either expressly or implicitly contained in this      Lease or imposed by statute or at commonlaw. |
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| 12.5 | TENANT’S      WAIVER: Landlord and Tenant agree that the provisions of Paragraph 12.3      above are intended to supercede and replace the provisions of California      Civil Code 1932. (1), 1941 and 1942, and accordingly, Tenant hereby waives      the provisions of Section 1932(1), 1941 and 1942 of the California Civil      Code and/or any similar or successor Law regarding Tenant’s right to      terminate this Lease or to make repairs and deduct the expenses of such      repair from the rent due under this Lease. Tenant hereby waives any right      of redemption or relief from forfeiture under the Laws of the State of      California, or under any other present or future Law, in the event Tenant      is evicted or Landlord takes possession of the Leased Premises by reason      of any default by Tenant. |
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| 13.1 | TAXES      ON TENANT’S PROPERTY: Tenant shall pay before delinquency any and all      taxes, assessments, license fees, use fees and public charges of whatever      nature or description levied, assessed or imposed against Tenant or      Tenant’s estate in this Lease or Tenant’s property or improvements made by      Tenant to the Leased Premises. Tenant shall pay before delinquency and all      taxes, assessments, license fees, use fees and public charges of whatever      nature or description levied, assessed or imposed by a governmental agency      against Landlord by reason of or based upon Tenant’s use of public      facilities or services, or Tenant’s consumption of public utilities,      energy, water or other resources which become due during the Lease Term.      On demand by Landlord, Tenant shall furnish Landlord with satisfactory      evidence of these payments. If any such taxes, assessments, fees or public      charges are levied against Landlord, Landlord’s property, the Building or      the Project, or if the assessed value of the Building or the Project is      increased by the inclusion therein of a value placed upon same, then      Landlord, after giving written notice to Tenant, shall have the right,      regardless of the validity thereof, to pay such taxes, assessment, fee or      public charge and bill Tenant, as Additionally Rent, the amount of such      taxes, assessment, fee or public charge so paid on Tenant’s behalf. Tenant      shall, within ten days from the date it receives an invoice from Landlord      setting forth the amount of such taxes, assessment, fee or public charge      so levied, pay to Landlord, as Additional Rent, the amount set forth in      said invoice. Failure by Tenant to pay the amount so invoiced within said      ten-day period shall be conclusively deemed a default by Tenant under this      Lease. Tenant shall have the right, and with Landlord’s full cooperation      if Tenant is not then in default under the terms of this Lease, to bring      suit in any court of competent jurisdiction to recover from the taxing      authority the amount of any such taxes, assessment, fee or public charge      so paid. |
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| 13.2 | HOLDING      OVER: This Lease shall terminate without further notice on the Leased      Expiration Date (as set forth in Article 1). Any holding over by Tenant      after expiration of the Lease Term shall neither constitute a renewal or      extension of this Lease nor give Tenant any rights in or to the Leased      Premises except as expressly provided in this Paragraph. Any such holding      over shall be deemed an unlawful detainer or the Leased Premises unless      Landlord has consented to same. Any such holding over to which Landlord      has consented shall be construed to be a tenancy from month to month, on      the same terms and conditions herein specified insofar as applicable,      except that the Base Monthly Rent shall be increased to an amount equal to      one hundred ten percent of the Base Monthly Rent payable during the last      full month immediately preceding such holding  over. |
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| 13.3 | SUBORDINATION      TO MORTGAGES: This Lease is subject and subordinate to all underlying      ground leases and to all mortgages and deeds of trust which affect the      Building and are of public record as of the Effective Date of this Lease,      and to all renewals, modifications, consolidation, replacements and      extensions thereof. However, if the lessor under any such ground lease or      any Lender holding any such mortgage or deed of trust shall advise      landlord that it desires or requires this Lease to be made prior and      superior thereto, then, upon written request of Landlord to Tenant, Tenant      shall promptly execute, acknowledge and deliver any and all documents or      instruments which Landlord and such lessor or Lender deem necessary or      desirable to make this Lease prior thereto. Tenant hereby consents to      Landlord’s ground leasing the land underlying the Building and/or      encumbering the Building as security for future loans on such terms as      Landlord shall desire, all of which future ground leases, mortgages or      deeds of trust shall be subject and subordinate to this Lease. However, if      any lessor under any such future ground lease or any Lender holding such      future mortgage or deed of trust shall desire or require that this Lease      be made subject and subordinate to such future ground lease, mortgage or      deed of trust, then Tenant agrees, within ten days after Landlord’s      written request therefore, to execute, acknowledge and deliver to Landlord      any and all documents or instruments requested by Landlord or such lessor      or Lender as may be necessary or proper to assure the subordination of      this Lease to such future ground lease, mortgage or deed of trust; but      only if such lessor or Lender agrees to recognize Tenant’s rights under      this Lease and not to disturb Tenant’s quiet possession of the Leased      Premises so long as Tenant is not in default under this    Lease. |
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| 13.4 | TENANT’S      ATTORNMENT UPON FORECLOSURE: Tenant shall, upon request, attorn (i) to any      purchaser of the Building, (ii) to any grantee or transferee designated in      any deed given in lieu of foreclosure of any security interest encumbering      the Building, or (iii) to the lessor under any underlying ground lease of      the land underlying the Building, should such ground lease be terminated;      provided that such purchaser, grantee or lessor recognizes Tenant’s rights      under this Lease. |
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| 13.5 | MORTGAGEE      PROTECTION: In the event of any default on the part of Landlord, Tenant      will give notice by certified mail to any Lender or lessor under any      underlying ground lease who shall have requested, in writing, to Tenant      that it be provided with such notice, and Tenant shall offer such Lender      or lessor a reasonable opportunity to cure the default, including time to      maintain possession of the Lease Premises by power of sale or judicial      foreclosure or other appropriate legal proceedings as reasonably necessary      to effect a cure. |
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| 13.6 | ESTOPPEL      CERTIFICATES: Tenant will, following any request by Landlord, promptly      execute and deliver to Landlord an estoppel certificate (i) certifying      that this Lease is unmodified and in full force and effect, or, if      modified, stating the nature of such modification and certifying that this      Lease, as so modified, is in full force and effect, (ii) stating the date      to which the rent and other charges are paid in advance, if any, (iii)      acknowledging that there are not, to Tenant’s knowledge, any uncured      defaults on the part of the Landlord hereunder, or specifying such      defaults if any are claimed, and (iv) certifying such other information      about this Lease as may be reasonably requested by Landlord. Tenant’s      failure to execute and deliver such estoppel certificate within ten days      after Landlord’s request therefore shall be material default by Tenant      under this Lease, and Landlord shall have all of the rights and remedies      available to Landlord as Landlord would otherwise have in the case of any      other material default by Tenant, including the right to terminate this      Lease and sue for damages proximately caused thereby it being agreed and      understood by Tenant that Tenant’s failure to so deliver such estoppel      certificate in a timely manner could result in Landlord being unable to      perform committed obligations to other third parties which were made by      landlord in reliance upon this covenant of Tenant. Landlord and Tenant      intend that any statement delivered pursuant to this Paragraph may be      relied upon by any Lender or purchaser or prospective Lender or purchaser      of the Building, the Project, or any interest  therein. |
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| 13.7 | TRANSFER      BY LANDLORD: Landlord and its successor in interest shall have the right      to transfer their interest in the Building, Project, or any portion      thereof at any time and to any person or entity. In the event of any such      transfer, the Landlord originally named herein (and in the case of any      subsequent transfer, the transferor), from the date of such transfer, (i)      shall be automatically relieved without any further act by any person or      entity, of all liability for the performance of the obligations of the      Landlord hereunder which may accrue after the date of such transfer and      (ii) shall be relieved of all liability for the performance of the      obligations of the Landlord hereunder which have accrued before the date      of transfer if its transferee agrees to assume and perform all such prior      obligations of the Landlord hereunder. Tenant shall attorn to any such      transferee. After the date of any such transfer, the term “Landlord” as      used herein shall mean the transferee of such interest in the Building or      the Project. |
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| 13.8 | FORCE      MAJEURE: The obligations of each of the parties under this Lease (other      than the obligation to pay money) shall be temporarily excused if such      party is prevented or delayed in performing such obligation by reason of      any strikes, lockouts or labor disputes; inability to obtain labor,      materials, fuels or reasonable substitutes therefore; governmental      restrictions, regulations, controls, action or inaction; civil commotion;      inclement weather, fire or other acts of God; or other causes (except      financial inability) beyond the reasonable control of the party obligated      to perform (including acts or omissions of the other party) for a period      equal to the period of any such prevention, delay or    stoppage. |
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| 13.9 | NOTICES:      Any notice required or desired to be given by a party regarding this Lease      shall be in writing and shall be personally served, or in lieu of personal      service may be given by depositing such notice in the United States mail,      certified, postage prepaid, addressed to the other party as      follows: |
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|   | A. | If      addressed to Landlord, to Landlord at its Address for Notices (as set      forth in Article 1) |
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|   | B. | If      addressed to Tenant, to Tenant at its Address for Notices (as set forth in      Article 1). Any notice given by certified mail shall be deemed given on      the date receipt was acknowledged to the postal authorities. Any notice      given by mail other than certified mail shall be deemed given only if      received by the other party, and then on the date of receipt. Each party      may, by written notice to the other in the manner aforesaid, change the      address to which notices addressed to it shall thereafter be      mailed. |
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| 13.10 | ATTORNEYS’      FEES: In the event any party shall bring any action, arbitration      proceeding or legal proceeding alleging a breach of any provision of this      Lease, to recover rent, to terminate this Lease, or to enforce, protect,      determine or establish any term or covenant of this Lease or rights or      duties hereunder of either party, the prevailing party shall be entitled      to recover from the non-prevailing party as a part of such action or      proceeding, or in a separate action for that purpose brought within one      year from the determination of such proceeding, reasonable attorney’s      fees, expert witness fees, court costs and other reasonable expenses      incurred by the prevailing party. In the event that Landlord shall be      required to retain counsel to enforce any provision of this Lease, and if      Tenant shall thereafter cure (or desire to cure) such default, Landlord      shall be conclusively deemed the prevailing party and Tenant shall pay to      Landlord all attorneys’ fees, expert witness fees, court costs and other      reasonable expenses so incurred by Landlord promptly upon demand. Landlord      may enforce this provision by either (i) requiring Tenant to pay such fees      and costs as a condition to curing its default or (ii) bringing a separate      action to enforce such payment, it being agreed by and between Landlord      and Tenant that Tenant’s failure to pay such fees and costs upon demand      shall constitute a breach of this Lease in the same manner as a failure by      Tenant to pay the Base Monthly Rent, giving Landlord the same rights and      remedies as if Tenant failed to pay the Base Monthly  Rent. |
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| 13.11 | DEFINITIONS:      Any term that is given a special meaning by any provisions in this Lease      shall, unless otherwise specifically stated, have such meaning whenever      used in this Lease in any addendum or amendment hereto. In addition to the      terms defined in Article 1, the following terms shall have the following      meanings: |
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|   | A. | REAL      PROPERTY TAXES: The terms “real Property Tax” and “Real Property Taxes”      shall each mean (i) all taxes, assessments, levies and other charges of      any kind or nature whatsoever, general and special, foreseen and      unforeseen (including all installments of principal and interest required      to pay any general or special assessments for public improvements and any      increases resulting from reassessments caused by any change in ownership      or new construction), now or hereafter imposed by any governmental or      quasi-governmental authority or special district having the direct or      indirect power to tax or levy assessments, which are levied or assessed      for whatever reason against the Project or any portion thereof, or      Landlord’s interest therein, or the fixtures, equipment and other property      of Landlord that is an integral part of the Project and located thereon,      or Landlord’s business of owing, leasing or managing the Project or the      gross receipts, income or rentals from the Project; (ii) all charges,      levies or fees imposed by any governmental authority against Landlord by      reason of or based upon the use of or number of parking spaces within the      Project, the amount of public services or public utilities used or      consumed (e.g. water, gas, electricity, sewage or surface water disposal)      at the Project, the number of persons employed by tenants of the Project,      the size (whether measured in area, volume, number of tenants or whatever)      or the value of the Project, or the type of use or uses conducted within      the Project; and (iii) all costs and fees (including attorneys’ fees)      incurred by Landlord in contesting any Real Property Tax and in      negotiating with public authorities as to any Real Property Tax. If, at      any time during the Lease Term, the taxation or assessment of the Project      prevailing as of the Effective Date of this Lease shall be altered so that      in lieu of or in addition to any Real Property Tax described above there      shall be levied, assessed or imposed (whether by reason of a change in the      method of taxation or assessment, creation of a new tax or charge, or any      other cause) and alternate, substitute, or additional tax or charge (i) on      the value, size, use or occupancy of the Project or Landlord’s interest      therein or (ii) on or measured by the gross receipts, income or rentals      from the Project, or on Landlord’s business of owning, leasing or managing      the Project or (iii) computed in any manner with respect to the operation      of the Project, then any such tax or charge, however designated, shall be      included within the meaning of the terms “Real Property Tax” or “Real      Property Taxes” for purposes of this Lease. If any Real Property Tax is      partly based upon property or rents unrelated to the Project, then only      that part of such Real Property Tax that is fairly allocable to the      Project shall be included within the meaning of the terms “Real Property      Tax” or “Real Property Taxes”. Notwithstanding the foregoing, the terms      “Real Property Tax” or “Real Property Taxes” shall not include estate,      inheritance, transfer, gift or franchise taxes of Landlord or the federal      or state income tax imposed on Landlord’s income from all      sources. |
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|   | B. | LANDLORD’S      INSURANCE COSTS: The term “Landlord’s Insurance Costs” shall mean the      costs to Landlord to carry and maintain the policies of fire and property      damage insurance for the Project and general liability insurance required,      or permitted, to be carried by Landlord pursuant to Article 9, together      with any deductible amounts paid by Landlord upon the occurrence of any      insured casualty or loss. |
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|   | C. | READY      FOR OCCUPANCY: The term “Ready for Occupancy” shall mean the date upon      which (i) the Leased Premises are suitable for Tenants occupancy in a      broom clean condition and (ii) the improvements, if any, to be made to the      Leased Premises by Landlord as a condition to Tenant’s obligation to      accept possession of the Leased Premises have been substantially completed      and the appropriate governmental building department (i.e. the City      building department, if the Project is located within a City, or otherwise      the County building department) shall have approved the construction of      the improvements as complete or is willing to so approve the construction      of the improvements as complete subject only to compliance with specified      conditions which are the responsibility of Tenant to    satisfy. |
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|   | D. | TENANT’S      PROPORTIONATE SHARE: The terms “Tenant’s Proportionate Share” and Tenant’s      Share” as used with respect to an item pertaining to the Building, shall      each mean that percentage obtained by dividing the leasable square footage      contained within the Leased Premises (as set forth in Article 1) by the      total leasable square footage contained within the Building as the same      from time to time exists or, as used with respect to an item pertaining to      the Project, shall each mean that percentage obtained by dividing the      leasable square footage contained within the Leased Premises (as set forth      in Article 1) by the total leasable square footage contained within the      Project as the same from time to time exists, unless, as to any given      item, such a percentage allocation unfairly burdens or benefits a given      tenant(s), in which case Landlord shall have the exclusive right to      equitably allocate such item so as to not unfairly burden or benefit a      given tenant(s). Landlord’s determination of any such special allocation      shall be final and binding upon Tenant unless made in bad      faith. |
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|   | E. | BUILDINGS      PROPORTIONATE SHARE: The terms “Building’s Proportionate Share” and      “Building’s Share” shall each mean that percentage which is obtained by      dividing the leasable square footage contained within the Building by the      leasable square footage contained with all buildings located within the      Project, unless, as to any given item, such a percentage allocation      unfairly burdens or benefits a given building(s), in which case Landlord      shall have the exclusive right to equitably allocate such item so as to      not unfairly burden or benefit any given building(s). Landlord’s      determination of any such special allocation shall be final and binding      upon Tenant unless made in badfaith. |
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|   | F. | LAW:      The term “Law” shall mean any judicial decision and any statute,      constitution, ordinance, resolution, regulation, rule, administrative      order, or other requirement of any municipal, county, state, federal, or      other governmental agency or authority having jurisdiction over the      parties to this Lease, the Leased Premises, the Building or the Project,      or any of them in effect either at the Effective Date of this Lease or at      any time during the Lease Term, including, without limitation, any      regulation, order, or policy of any quasi-official entity or body (e.g. a      board of fire examiners or a public utility or special      district). |
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|   | G. | LENDER:      The term “Lender” shall mean any beneficiary, mortgagee, secured party, or      other holder of any deed of trust, mortgage or other written security      device or agreement affecting the Project, and the note or other      obligations secured by it. |
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|   | H. | PRIVATE      RESTRICTIONS: The term “Private Restrictions” shall mean all recorded      covenants, conditions and restrictions, private agreements, easements, and      any other recorded instruments affecting the use of the Project, as they      may exist from time to time. |
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|   | I. | RENT:      The term “rent” shall mean collectively Base Monthly Rent and all      Additional Rent. |
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| 13.12 | GENERAL      WAIVERS: One party’s consent to or approval of any act by the other party      requiring the first party’s consent or approval shall not be deemed to      waive or render unnecessary the first party’s consent to or approval of      any subsequent similar act by the other party. No waiver of any provision      hereof or any breach of any provision hereof shall be effective unless in      writing and signed by the waiving party. The receipt by Landlord of any      rent or payment with or without knowledge of the breach of any other      provision hereof shall not be deemed a waiver of any such breach. No      waiver of any provision of this Lease shall be deemed a continuing waiver      unless such a waiver specifically states so in writing and is signed by      both Landlord and Tenant. No delay or omission in the exercise of any      right or remedy accruing to either party upon any breach by the other      party under this Lease shall impair such right or remedy or be construed      as a waiver of any such breach theretofore or thereafter occurring. The      waiver by either party of any breach of any provision of this Lease shall      not be deemed to be a waiver of any subsequent breach of the same or any      other provisions herein contained. |
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| 13.13 | MISCELLANEOUS:      Should any provision of this Lease prove to be invalid or illegal, such      invalidity or illegality shall in no way affect, impair or invalidate any      other provision hereof, and such remaining provisions shall remain in full      force and effect. Time is of the essence with respect to the performance      of every provision of this Lease in which time of performance is a factor.      Any copy of this Lease, which is executed by the parties, shall be deemed      an original for all purposes. This Lease shall, subject to the provisions      regarding assignment, apply to and bind the respective heirs, successors,      executors, administrators and assigns of Landlord and Tenant. The term      “party” shall mean Landlord or Tenant as the context implies. If Tenant      consists of more than one person or entity, then all members of Tenant      shall be jointly and severally liable hereunder. This Lease shall be      construed and enforced in accordance with the Laws of the State of      California. The language in all parts of this Lease shall in all cases be      construed as a whole according to its fair meaning, and not strictly for      or against either Landlord or Tenant. The captions used in this Lease are      for convenience only and shall not be considered in the construction or      interpretation of any provision hereof. When the context of this Lease      requires, the neuter gender includes the masculine, the feminine, a      partnership or corporation or joint venture, and the singular includes the      plural. The terms “must”, “shall”, “will” and “agree” are mandatory. The      term “may” is permissive. When a party is required to do something by this      Lease, it shall do so at its sole cost and expense without right of      reimbursement from the other party unless specific provision is made      therefore. Where Tenant is obligated not to perform any act or is not      permitted to perform any act, Tenant is also obligated to restrain any      others reasonably within its control, including agents, invitees,      contractors, subcontractors and employees, from performing said act.      Landlord shall not become or be deemed a partner or a joint venturer with      Tenant by reason of any of the provisions of this  Lease. |
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| 14.1 | CORPORATE      AUTHORITY: If Tenant is a corporation, each individual executing this      Lease on behalf of said corporation represents and warrants that Tenant is      validly formed and duly authorized and existing, that Tenant is qualified      to do business in the State of California, that Tenant has the full right      and legal authority to enter into this Lease, that he is duly authorized      to execute and deliver this Lease on behalf of the Tenant in accordance      with the bylaws and/or a board of directors’ resolution of Tenant, and      that this Lease is binding upon Tenant in accordance with its terms.      Tenant shall, within thirty days after execution of this Lease, deliver to      Landlord a certified copy of the resolution of its board of directors      authorizing or ratifying the execution of this Lease, and if Tenant fails      to do so, Landlord at its sole election may elect to (i) extend the      Intended Commencement Date by such number of days that Tenant shall have      delayed in so delivering such corporate resolution to Landlord or (ii)      terminate this Lease. |
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| 14.2 | BROKERAGE      COMMISSIONS: Tenant warrants that it has not had any dealings with any      real estate broker(s), leasing agent(s) or salesmen, other than those      persons or entities named in Article 1 as the “Brokers” with respect to      the lease by it of the Leased Premises pursuant to this Lease, and that it      will indemnify, defend with competent counsel, and hold Landlord harmless      from any liability for the payment of any real estate brokerage      commissions, leasing commissions or finder’s fees claimed by any other      real estate broker(s), leasing agent(s) or salesmen to be earned or due      and payable by reason of Tenant’s agreement or promise (implied or      otherwise) to pay (or have Landlord pay) such a commission or finder’s fee      by reason of its leasing the Leased Premises pursuant to this      Lease. |
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| 14.3 | ENTIRE      AGREEMENT: This Lease, the Exhibits (as described in Article 1) and the      Addenda (as described in Article 1), which Exhibits and Addenda are by      this reference incorporate herein, constitute the entire agreement between      the parties, and there are no other agreements, understandings or      representations between the parties relating to the lease by Landlord of      the Leased Premises to Tenant, except as expressed herein. No subsequent      changes, modifications or additions to this Lease shall be binding upon      the parties unless in writing and signed by both Landlord and      Tenant. |
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| 14.4 | LANDLORD’S      REPRESENTATIONS: Tenant acknowledges that neither Landlord nor any of its      agents made any representations or warranties respecting the Project, the      Building or the Leased Premises, upon which Tenant relied in entering into      this Lease, which are not expressly set forth in this Lease. Tenant      further acknowledges that neither Landlord nor any of its agents made any      representations as to (i) whether the Lease Premises may be used for      Tenant’s intended use under existing Law or (ii) the suitability of the      Leased Premises for the conduct of Tenant’s business or (iii) the exact      square footage of the Leased Premises, and that Tenant relied solely upon      its own investigations respecting said matters. Tenant expressly waives      any and all claims for damage by reason of any statement, representation,      warranty, promise or other agreement of Landlord or Landlord’s agent(s),      if any, not contained in this Lease or in any Addenda    hereto. |
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| 15.1 | OPTION      TO RENEW LEASE: Provided that Tenant is not in default under this Lease      beyond the applicable notice and cure period at the time of exercise of      any such option or at the time of commencement of any renewal term, Tenant      is hereby granted two (2) options to renew the term of the Lease. Each      option shall be for a period of thirty (36) months and each such period      being a “Renewal Term”. |
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|   | A. | Tenant      shall occupy the Premises during the Renewal Term under the same terms and      conditions specified in the Lease, except the Tenant shall lease the      Premises in its then “as-is” condition, with Tenant being entitled to no      additional tenant improvement allowance or other right to require the      improvements to be made to the Premises. The Base Monthly Rent for the      first Renewal Term shall be as set forth in Article 1 of this Lease.      During the second Renewal Term, the Base Monthly Rent shall be the then      Market Rate, but not less than the Base Monthly Rate for the Premises in      effect immediately prior to the commencement of such Renewal      Term. |
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|   | B. | As      used herein, the term “Market Rate” shall be initially determined by      Landlord as the amount as the base annual rent per square foot then being      charged in comparable industrial buildings located in the metropolitan      area of San Jose, California (the “Comparable Buildings”) for space      comparable to the Premises and taking into consideration all other      relevant factors establishing similarity or dissimilarity between the      comparable lease and the leasing of the Premises to Tenant for the Renewal      Term, including without limitation, escalations (including type, base year      and stop), concessions, length of lease term, size and location of the      Premises, tenant improvement allowances quality and quantity of any      existing tenant improvements, quality and creditworthiness of Tenant,      amenities offered, location of building, and other generally applicable      concessions, allowances, terms and conditions of tenancy. The reference to      the foregoing factors is illustrative only and the presence or absence of      such factors shall be taken into account in determining Market      Rate. |
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|   | C. | Within      thirty (30) days after Landlord receives the notice of Tenant’s exercise      of the second renewal option, Landlord shall notify Tenant of the proposed      Market Rate, as well as any escalation rate applicable to the second      Renewal Term, In the event that landlord and Tenant are not able to agree      as to the market Rate and any applicable escalation rate within thirty      (30) days of good faith negotiation, then the Base Monthly Rate for the      second Renewal Term shall be determined by the arbitration provision set      forth below. |
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|   | D. | If      Landlord and Tenant cannot agree on the Base Monthly rent to be paid      during the second Renewal Term as provided above, then each party shall      immediately select an arbitrator to determine the base Monthly Rent to be      paid by Tenant during the applicable period, if the two arbitrators agree      on the Base Monthly Rent to be paid by the Tenant, then their decision      shall be binding on the parties. If the arbitrators cannot agree within      fifteen (15) days following their appointment on the Base Monthly Rent to      be paid, then the two shall, within five (5) days thereafter, select a      third arbitrator who will consider the proposal of each party’s      arbitrator, and shall, within five (5) days from the third arbitrator’s      appointment, adopt the findings of either the Landlord’s or Tenant’s      arbitrator with respect to Base Monthly Rent to be paid during the      applicable period, which finding shall be final and binding upon the      parties. If one of the parties appoints an arbitrator and the other party      does not do so within the period provided herein, the decision of the      single arbitrator appointed by the one party shall be binding upon the      parties. |
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|   | E. | Tenant      may exercise its right to renew the Lease by giving to Landlord written      notice of its election to renew the Lease not later than 90 days prior to      the expiration of the then current Term or Renewal Term, as      applicable. |
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|   | F. | Tenant      shall not be entitled to more than two (2) renewal options. In the event      Tenant fails to timely notify Landlord in the manner herein specified,      Tenant shall be conclusively deemed to have waived its right to enter into      the applicable Renewal Term or any subsequent Renewal  Term. |
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|   | G. | The      options to renew provided hereunder shall be automatically transferred to      any assignee of Tenant’s interest under this  Lease. |
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| 16.1 | LANDLORD’S      NOTICE OF INTENT TO SELL PROPERTY: Should Landlord actively pursue sale of      355 Turtle Creek Court, or receive an unsolicited offer on the property      during the Lease      term, then Landlord shall notify Tenant or Tenant’s management by      registered mail 30 days in advance of offering to others or within 30 days      of an unsolicited offer. Tenant shall reply with its interest or decline      within 15 days after Landlord’snotice. |
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|                         |                   |                                     |   |
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|                         | AS      LANDLORD:      |
|                         |                   |
| Dated:      Jan 5th, 2010    |                   |
|                         |                   |
|                         | By:                    | /s/ Gail H. Ducote                       |   |
|                         |                   | Gail      H. Ducote                      |
|                         |                   |                                     |
|                         | By:                    | /s/ Robert D. Ducote                     |   |
|                         |                   | Robert      D. Ducote                    |
|                         |                   |                                     |   |   |
|                         | AS      TENANT:        |                                     |
|                         |                   |                                     |
| Dated:      JAN 4,      2010 |                   |                                     |
|                         |                   |                                     |   |   |
|                         | MERIX      CORPORATION |                                     |
|                         | By:                    | /s/ John R. Johnston                     |   |   |
|                         |                   | John      R. Johnston                    |   |
|                         |                   | V.P.      Global EH&S and Facilities |   |

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