##### 



Exhibit 10.5




---



##### 



TABLE OF CONTENTS
 Page1. Definitions and Interpretation
    
    
    22. Demise, Premises, Term and Rent
    
    
    23. Delivery, Use and Occupancy of Premises
    
    
    34. Real Property Tax Payments
    
    
    45. Alterations
    
    
    66. Management, Maintenance and Repairs
    
    
    87. Compliance with Legal Requirements
    
    
    108. Subordination, Nondisturbance and Attornment
    
    
    119. Insurance Requirements
    
    
    1210. Damage or Destruction by Casualty
    
    
    1311. Condemnation
    
    
    1412. Assignment, Subletting and Mortgaging
    
    
    1613. Electricity
    
    
    1714. Roof Rights
    
    
    1715. Building Name and Signage
    
    
    1816. Access to Premises
    
    
    1817. Certificate of Occupancy
    
    
    1918. Events of Default
    
    
    1919. Remedies for Default
    
    
    2020. Fees and Expenses
    
    
    2321. No Representations by Landlord
    
    
    2322. Expiration, Surrender and Holdover
    
    
    2323. Fixtures, Equipment and Other Property
    
    
    2424. Quiet Enjoyment
    
    
    2525. No Waiver Provisions
    
    
    2526. Affirmative Waivers
    
    
    2527. Unavoidable Delays
    
    
    2528. Notices
    
    
    2629. Estoppel Certificates
    
    
    2730. Broker
    
    
    28




---



##### 



TABLE OF CONTENTS
 Page31. Indemnity
    
    
    2832. Intentionally Deleted
    
    
    3033. Extension Terms
    
    
    3134. Miscellaneous
    
    
    3735. Easements
    
    
    4036. Confidentiality; Press Releases
    
    
    4437. Financing
    
    
    4838. Leasehold Mortgages
    
    
    49
 - 2 -




---



##### 



EXHIBITS




---



##### 



AGREEMENT OF LEASE
 Lease Commencement Date Landlord Tenant
  Contract of Sale Land Exhibit B Building
 Section 2.1
  Definitions and Interpretation Exhibit A
 Demise, Premises, Term and Rent Section 2.1
 Premises Premises




---



##### 



Term Initial Term Section 33 Section 33 Term
 Rent
 Fixed Rent st
 Additional Rent
  Method of Payment Rent
 -2-




---



##### 



Apportionment st
 Landlord Rights
 Net Lease
 Delivery, Use and Occupancy of Premises
  Article 3 Permitted Use
 -3-




---



##### 



Hazardous Materials et seq et seq
 Permitted Hazardous Materials
  -4-




---



##### 



Real Property Tax Payments
 Taxes
 -5-




---



##### 



Section 4.1 Section 4.3
 Refund(s)
 Tax Appeal Section 4.5
 -6-




---



##### 



Benefits
 Alterations
 Section 5
 Section 5.1
 -7-




---



##### 



Section 5.2
  Management, Maintenance and Repairs
  Article 10 Article 11
 -8-




---



##### 



Comparable Standard Section 5.1
 Emergency
 Replacements; Roof Covering
 -9-




---



##### 



Roof Covering
 Compliance with Legal Requirements
 Section 7.1
     Subordination, Nondisturbance and Attornment
 Section 8.4 Section 8.1 Superior Party
 -10-




---



##### 



Section 8.4 Section 8.3
 Section 8.1 Article 8 Exhibit C Superior Mortgagee SNDA Exhibit C
  Insurance Requirements
  -11-




---



##### 



Article 20 Section 9.1
   Article
9
  -12-




---



##### 



Damage or Destruction by Casualty
 Damaged Improvements Section 10.1 Section 10.3
  Article 10 th
 Article 10
 -13-




---



##### 



Condemnation
 Total Taking
  Partial Taking
    Section 11.4
 -14-




---



##### 



Assignment and Subletting
    -15-




---



##### 



Article 12
 Utilities and Services
 6.1(c)
 Roof Rights
  -16-




---



##### 



Signage
  Access to Premises
 Section 6.1 Article 16
  -17-




---



##### 



Certificate of Occupancy
   Events of Default
 Event of Default
      -18-




---



##### 



Remedies for Default
 Section 19.6
     -19-




---



##### 



Section 19.1(c)
 Sections 19.1(a)(i) (ii) Section
19.1(a)(iii)
      -20-




---



##### 



Fees and Expenses
  No Representations by Landlord
  Expiration, Surrender and Holdover
 Section 23
  -21-




---



##### 



Fixtures, Equipment and Other Property
  Tenants Property Section 5.2
 Quiet Enjoyment
  -22-




---



##### 



No Waiver Provisions
   Affirmative Waivers
  Unavoidable Delays
   Notices
  -23-




---



##### 



Section 28
 If to Landlord:
    
    c/o D.R. Stephens & Company, LLC465 California Street, Suite 330San Francisco, CA 94104Attention: Lane StephensIf to Tenant:
    
    RAE Systems Inc.3773 N. First StreetSan Jose, CA 95134Attention: Chief Financial Officer or Treasurerwith a copy to:DLA Piper US LLP2000 University AvenueEast Palo Alto, CA 94303Attention: Peter Astiz, Esq.
  Estoppel Certificates
  -24-




---



##### 



Broker
 Article 30
 Indemnity
 provided however Section 31.1 Section 31.4
 provided however Section 31.2 Section 31.3
 -25-




---



##### 



Section 9.4 Section 34.1 Landlord Party
     Section 9.4 Section 34.1
 Tenant Party
 -26-




---



##### 



Indemnified Party Article 31 Responsible Party Section 31.6 Section 31.6 Article 9
  Extension Term
  Option
 Extension Term
 Article 33 Article 33
 Extension Election Notice
 -27-




---



##### 



Rent Notice Response
Notice Revocation Notice Revocation Period Section 33.3(a) Article 33
   -28-




---



##### 



Landlords Submitted Value Tenants Submitted Value AAA
 -29-




---



##### 



Article 33 Market Value Rent
 Miscellaneous
 provided that Article 31
 -30-




---



##### 



Section 34.4
   -31-




---



##### 



Tenant Companies Tenants Indemnitees Section 34.9
   -32-




---



##### 



Confidentiality; Press Releases
 Confidential Information Article 35
  Financing
 Tenants Collateral
 -33-




---



##### 



Leasehold Mortgages
 Leasehold Mortgage Leasehold Mortgagee
  -34-




---



##### 



[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
 -35-




---



##### 



LANDLORD:INLAND AMERICAN/STEPHENS (N FIRST) VENTURES, LLC, a
Delaware limited liability companyBy:
    
    Stephens & Stephens, LLC, a California limited
liability company, its managerBy:
    
    /s/ Lane B. StephensLane B. Stephens, ManagerTENANT:RAE SYSTEMS INC., a Delaware corporationBy:
    
    
    
    /s/ Randall GausmanRandall Gausman, Chief Financial
Officer
 -36-




---



##### 



EXHIBIT A
  Definitions
 AAA Section 33.3(a)
 Additional Rent Section 2.3(b)
 Adjustment Date
 Affiliate
 Alterations
 Applicable Rate
 Broker
 Building
 Business Days
 Capital Item Section 6.2(b)
 Capital Item Notice Section 6.2(b)
 A-1




---



##### 



Commencement Date
 Comparable Buildings
 Comparable Standard Section 6.1
 Confidential Information Section 36.1
 Contract of Sale
 Corporate Successor
 Event of Default Section 18.1
 Expiration Date Article 33
 Extension Election Notice Section 33.1(b)
 Extension Option Section 33.1(a)
 Extension Term Section 33.1(a)
 Fixed Rent Section 2.3(a)
 Governmental Authority
 Indemnified Party Section 31.6
 Initial Term Section 2.2
 Item Cost Section 6.2(b)
 Item Dispute Notice Section 6.2(b)
 Land
 Landlord
 A-2




---



##### 



Landlord Party Section 31.3
 Landlord Reimbursement Notice Section 6.2(e)
 Landlords Submitted Value Section 33.1(b)
 Leasehold Mortgage Section 37.1
 Leasehold Mortgagee Section 37.1
 Legal Requirements
 Legal Requirements
 Market Value Rent Section 33.4
 Named Tenant
 Permitted Use Section 3.2
 Permitted Users
 Person
 Premises Section 2.1
 Qualifying Capital Item Section 6.2(d)
 Real Property
 A-3




---



##### 



Reassessment Event
 Refund(s) Section 4.3
 Reimbursement Amount Section 6.2(a)
 Rent Section 2.4
 Rent Notice Section 33.1(b)
 Response Notice Section 33.1(b)
 Responsible Party Section 31.6
 Revocation Notice Section 33.1(b)
 Revocation Period Section 33.1(b)
 Security Deposit Section 2.3(c)
 Structural Elements Section 6.2
 Superior Mortgage
 Superior Mortgagee
 Superior Mortgagee SNDA Section 8.4
 Superior Party Section 8.1
 Tax Appeal Section 4.4
 Taxes Section 4.1
 A-4




---



##### 



Tenant
 Tenant Companies Section 34.9
 Tenant Indemnitees Section 34.9
 Tenant Party Section 31.5
 Tenants Property Section 23.2
 Tenants Submitted Value Section 33.1(b)
 Term Section 2.2
 Useful Life Estimate Section 6.2(b)
 Unavoidable Delay
 Interpretation
 A-5




---



##### 



EXHIBIT B
  B-1




---



##### 



EXHIBIT C