EXHIBIT 10.30



[GRAPHIC]         AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION



STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE - NET

(DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)



1.Basic Provisions (Basic Provisions)



1.1 Parties: This
Lease (lease), dated for reference purposes only MARCH 5, 2004 is made by and between KLEIN INVESTMENTS, FAMILY LIMITED PARTNERSHIP (Lessor) and QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE, INC. ,A DELAWARE CORPORATION
(Lessee), (collectively the Parties, or individually a Party).



1.2 Premises: That certain real property, including all improvements therein or to be provided by Lessor under the terms of this Lease, and
commonly known as 17872 CARTWRIGHT ROAD, IRVINE located in the County of ORANGE, State of CALIFORNIA and generally described as (describe briefly the nature of the property and if applicable theProject, if the property is located
within a project) AN APPROXIMATE 88,159 SQUARE FOOT INDUSTRIAL BUlLDING AND THE LEGAL PARCEL OF LAND ON WHICH IT IS SITUATED. (Premises). (See also Paragraph 2)



1.3 Term: FIVE (5) years and months (Original Term) commencing AUGUST 18, 2004 (Commencement Date) and ending
AUGUST 17, 2009 (Expiration Date). (See also Paragraph 3)



1.4 Early Possession: N/A (Early Possession Date). (See also Paragraphs 3.2 and 3.3)



1.5 Base Rent: $49,000.00 per month (Base Rent), payable on the FIRST (1st) day of each month commencing UPON LEASE EXECUTION
SEE ADDENDUM (See also Paragraph 4)



|x | If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted.
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1.6 Base Rent Paid Upon Execution:$ 19,600.00 as Base Rent for the period AUGUST 18, 2004 THROUGH AUGUST 31, 2004 ,



1.7 Security Deposit: $34,826.00 ON DEPOSIT
(Security Deposit). (See also Paragraph 5).



1.8 Agreed Use:MANUFACTURING, DISTRIBUTION, AND OFFICE ADMINISTRATION (See also Paragraph 6)



1.9 Insuring Party. Lessor is the Insuring Party unless otherwise stated herein. (See also Paragraph 8)



1.10 Real Estate Brokers:(See also Paragraph 15) SEE ADDENDUM



(a) Representation:The following real
estate brokers (collectively, the Brokers) and brokerage relationships exist In this transaction (check applicable boxes):



|x | COLLIERS - SEELEY MICHAEL HARTEL represents Lessor exclusively (Lessors Broker);
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|x | THE GIBSON COMPANY- THOMAS GIBSON represents Lessee exclusively (Lessees Broker); or
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| ̈ | N/A represents both Lessor and Lessee (Dual Agency).
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1.11 Guarantor.The obligations of the Lessee under this Lease are to be guaranteed by N/A (Guarantor). (See also Paragraph 37)



1.12 Addenda and Exhibits. Attached hereto is an
Addendum or Addenda consisting of Paragraphs 51 through 67 and Exhibits A, all of which constitute a part of this Lease.



2.Premises.



2.1Letting.Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the
terms, covenants and conditions set forth in this Lease. Unless otherwise provided herein, any statement of size set forth in this Lease, or that may have been used in calculating rental, is an approximation which the Parties agree is reasonable and
the rental based thereon is not subject to revision whether or not the actual size is more or less.



SEE ADDENDUM



2.3 Compliance. Lessor warrants that the improvements on the Premises comply with all applicable laws, covenants or restrictions of record, building codes, regulations and ordinances (Applicable Requirements) in
effect on the Start Date. Said warranty does not apply to the use to which Lessee will put the Premises or to any Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for
determining whether or not the zoning is appropriate for Lessee's intended use, and acknowledges that past uses of the Premises may no longer be allowed. If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided,
promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify the same at Lessor's expense. If Lessee does not give Lessor written notice of a non-compliance with this
warranty within six (6) months following the Start Date, correction of that non-compliance shall be the obligation of Lessee at Lessee's sole cost and expense. If the Applicable Requirements are hereafter changed (as opposed to being In existence at
the Start Date, which is addressed in Paragraph 6.2(e) below) so as to require during the term of this Lease the construction of an addition to or an alteration of the Building, the remediation of any Hazardous Substance, or the reinforcement or
other physical modification of the Building (Capital Expenditure), Lessor and Lessee shall allocate the cost of such work as follows:



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(a) Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a
result of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however that if such Capital Expenditure is required during the last two
(2) years of this Lease and the cost thereof exceeds six (6) months Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in writing, within ten (10) days after receipt of Lessees termination notice that
Lessor has elected to pay the difference between the actual cost thereof and the amount equal to six (6) months Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires such Capital
Expenditure and deliver to Lessor written notice specifying a termination date at least ninety (90) days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lessee could legally utilize the Premises
without commencing such Capital Expenditure.



(b) If such Capital Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor and Lessee shall allocate the obligation to pay for such costs
pursuant to the provisions of Paragraph 7.1(c); provided, however, that if such Capital Expenditure is required during the last two years of this Lease and provided that such Capital Expenditure does not exceed the amount of three (3) months Base
Rent then payable, or if Lessor reasonably determines that it is not economically feasible to pay its share thereof, Lessor shall have the option to terminate this Lease upon ninety (90) days prior written notice to Lessee unless Lessee notifies
Lessor, in writing, within ten (10) days after receipt of Lessors termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not elect to terminate, and fails to tender its share of any such Capital Expenditure,
Lessee may advance such funds and deduct same, with Interest, from Rent until Lessors share of such costs have been fully paid. If Lessee is unable to finance Lessors share, or if the balance of the Rent due and payable for the remainder
of this Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee shall have the right to terminate this Lease upon thirty (30) days written notice to Lessor. SEE ADDENDUM



(c) Notwithstanding the above, the provisions concerning
Capital Expenditures are intended to apply only to non-voluntary, unexpected, and new Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use, change in Intensity of
use, or modification to the Premises made by Lessee then, and in that event, Lessee shall be fully responsible for the cost thereof, and Lessee shall not have any right to terminate this Lease.



2.4 Acknowledgements. Lessee acknowledges that: (a) it has been
advised by Lessor and/or Brokers to satisfy itself with respect to the condition of the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable
Requirements), and their suitability for Lessees intended use, (b) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the
Premises, and (c) neither Lessor, Lessors agents, nor any Broker has made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that; (a) Broker
has made no representations, promises or warranties concerning Lessees ability to honor the Lease or suitability to occupy the Premises, and (b) it is Lessors sole responsibility to investigate the financial capability and/or suitability
of all proposed tenants.



2.5 Lessee as Prior
Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of no force or effect if immediately prior to the Start Date Lessee was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary
corrective work.



3.Term.



3.1 Term. The Commencement Date, Expiration Date and Original Term of
this Lease are as specified in Paragraph 1.3.



3.2
Early Possession. If Lessee totally or partially occupies the Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such early possession. All other terms of this Lease (including but not
limited to the obligations to pay Real Property Taxes and insurance premiums and to maintain the Premises) shall, however, be in effect during such period. Any such early possession shall not affect the Expiration Date.



3.3 Delay In Possession. Lessor agrees to use its best commercially
reasonable efforts to deliver possession of the Premises to Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession as agreed, Lessor shall not be subject to any liability therefor, nor shall such failure
affect the validity of this Lease. Lessee shall not, however, be obligated to pay Rent or perform its other obligations until it receives possession of the Premises. If possession is not delivered within sixty (60) days after the Commencement Date,
Lessee may, at its option, by notice in writing within ten (10) days after the end of such sixty (60) day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. If such written notice is not
received by Lessor within said ten (10) day period, Lessees right to cancel shall terminate. Except as otherwise provided, if possession is not tendered to Lessee by the Start Date and Lessee does not terminate this Lease, as aforesaid, any
period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay
caused by the acts or omissions of Lessee. If possession of the Premises is not delivered within four (4) months after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in writing.



3.4 Lessee Compliance. Lessor shall not be required to
tender possession of the Premises to Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under this Lease
from and after the Start Date, including the payment of Rent, notwithstanding Lessors election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee is required to perform any other conditions prior to or
concurrent with the Start Date, the Start Date shall occur but Lessor may elect to withhold possession until such conditions are satisfied.



4.Rent.



4.1. Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) are deemed to be
rent (Rent).



4.2 Payment. Lessee shall
cause payment of Rent to be received by Lessor in lawful money of the United States, without offset or deduction (except as specifically permitted in this Lease), on or before the day on which it is due. Rent for any period during the term hereof
which is for less than one (1) full calendar month shall be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time
to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessors rights to the balance of such Rent, regardless of Lessors endorsement of any check so stating.



5. Security Deposit. Lessee shall deposit with Lessor upon execution hereof the
Security Deposit as security for Lessees faithful performance of its obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any portion of said Security Deposit
for the payment of any amount due Lessor or to reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of said Security Deposit,
Lessee shall within ten (10) days after written request therefor deposit monies with Lessor sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent Increases during the term of this Lease, Lessee
shall, upon written request from Lessor, deposit additional moneys with Lessor so that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the
Initial Base Rent. Should the Agreed Use be amended to accommodate a material change in the business of Lessee or to accommodate a sublessee or assignee, Lessor shall have the right to increase the Security Deposit to the extent necessary, in
Lessors reasonable judgment, to account for any increased wear and tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs during this Lease and following such change the financial condition of Lessee is,
in Lessors reasonable judgment, significantly reduced, Lessee shall deposit such additional monies with Lessor as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on said change in financial
condition. Lessor shall not be required to keep the Security Deposit separate from its general accounts. Within fourteen (14) days after the expiration or termination of this Lease, if Lessor elects to apply the Security Deposit only to unpaid Rent,
and otherwise within thirty (30) days after the Premises have been vacated pursuant to Paragraph 7.4(c) below, Lessor shall return that portion of the Security Deposit not used or applied by Lessor. No part of the Security Deposit shall be
considered to be held in trust, to bear interest or to be prepayment for any monies to be paid by Lessee under this Lease.



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6. Use.



6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which is reasonably comparable thereto, and for
no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs owners and/or occupants of, or causes damage to neighboring properties. Lessor shall not
unreasonably withhold or delay its consent to any written request for a modification of the Agreed Use, so long as the same will not impair the structural integrity of the improvements on the Premises or the mechanical or electrical systems therein,
is not significantly more burdensome to the Premises. If Lessor elects to withhold consent, Lessor shall within five (5) business days after such request give written notification of same, which notice shall include an explanation of Lessors
objections to the change in use.



SEE ADDENDUM



6.2 Hazardous Substances.



(a) Reportable Uses Require Consent. The term Hazardous Substance as used in this
Lease shall mean any product, substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to
the public health, safety or welfare, the environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable
statute or common law theory. Hazardous Substances shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the
Premises which constitutes a Reportable Use of Hazardous Substances without the express prior written consent of Lessor and timely compliance (at Lessees expense) with all Applicable Requirements. Reportable Use shall mean
(i) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice,
registration or business plan is required to be filed with, any governmental authority, and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice be given to persons
entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing, Lessee may use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use, so long as such use is in
compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor to any liability therefor. In addition, Lessor may
condition its consent to any Reportable Use upon receiving such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or the environment against damage, contamination, injury and/or liability,
including, but not limited to, the installation (and removal on or before Lease expiration or termination) of protective modifications (such as concrete encasements) and/or increasing the Security Deposit.



(b) Duty to Inform Lessor. If Lessee knows, or has
reasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice of such fact to Lessor, and provide
Lessor with a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous Substance.



(c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about
the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessees expense, take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup
of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the
Premises during the term of this Lease, by or for Lessee, or any third party.



(d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless from and against any and all loss of rents and/or damages,
liabilities, judgments, claims, expenses, penalties, and attorneys and consultants fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee, (provided, however, that Lessee shall have no
liability under this Lease with respect to underground migration of any Hazardous Substance under the Premises from adjacent properties). Lessees obligations shall include, but not be limited to, the effects of any contamination or injury to
person, property or the environment created or suffered by Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. No termination, cancellation or
release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed by Lessor in writing at the time of such agreement.



(e) Lessor Indemnification. Lessor and its successors
and assigns shall indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the cost of remediation, which existed as a result of Hazardous Substances on the
Premises prior to the Start Date or which are caused by the negligence or willful misconduct of Lessor, its agents or employees. Lessors obligations, as and when required by the Applicable Requirements, shall include, but not be limited to,
the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease.



(f) Investigations and Remediations. Lessor shall retain the responsibility and pay for any investigations or remediation measures
required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to the Start Date, unless such remediation measure is required as a result of Lessees use (including
Alterations, as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing Lessor and
Lessors agents to have reasonable access to the Premises at reasonable times in order to carry out Lessors investigative and remedial responsibilities.



(g) Lessor Termination Option. If a Hazardous Substance Condition occurs during the term of this
Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall continue in full force and effect, but subject to
Lessors rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessors option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at Lessors expense, in
which event this Lease shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds twelve (12) times the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee, within
thirty (30) days after receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessors desire to terminate this Lease as of the date sixty (60) days following the date of such notice. In the event Lessor
elects to give a termination notice, Lessee may, within ten (10) days thereafter, give written notice to Lessor of Lessees commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an
amount equal to twelve (12) times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within thirty (30) days following such commitment. In such event, this
Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably possible after the required funds are available. If Lessee does not give such notice and provide the required funds or assurance
thereof within the time provided, this Lease shall terminate as of the date specified in Lessors notice of termination.



6.3 Lessees Compliance with Applicable Requirements. Except as otherwise provided in this Lease, Lessee shall, at Lessees sole expense,
fully, diligently and in a timely, manner, materially comply with all Applicable Requirements, the reasonable requirements of any applicable fire insurance underwriter or rating bureau, and the reasonable recommendations of Lessors engineers
and/or consultants which relate in any manner to the Premises, without regard to whether said requirements are now in effect or become effective after the Start Date. Lessee shall, within ten (10) days after receipt of Lessors written request,
provide Lessor with copies of all permits and other documents, and other information evidencing Lessees compliance with any Applicable Requirements specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies
of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable Requirements.



6.4 Inspection; Compliance. Lessor and Lessors
Lender (as defined in Paragraph 30 below) and consultants shall have the right to enter into Premises at any time, in the case of an emergency, and otherwise at reasonable times, after reasonable prior notice for the purpose of
inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a contamination is found to exist or be
imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspections, so long as such inspection is reasonably related to the violation or
contamination.



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7. Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations.



7.1 Lessees Obligations.



(a) In General. Subject to the provisions of
Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3 (Lessees Compliance with Applicable Requirements), 7.2 (Lessors Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessees sole expense, keep the
Premises, Utility Installations, and Alterations in good order, condition and repair (whether or not the portion of the Premises requiring repairs, or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or
not the need for such repairs occurs as a result of Lessees use, any prior use, the elements or the age of such portion of the Premises), including, but not limited to, all equipment or facilities, such as plumbing, heating, ventilating,
air-conditioning, electrical, lighting facilities, boilers, pressure vessels, fire protection system, fixtures, walls (interior and exterior), foundations, ceilings, roofs, floors, windows, doors, plate glass, skylights, landscaping, driveways,
parking lots, fences, retaining walls, signs, sidewalks and parkways located in, on, or adjacent to the Premises. Lessee, in keeping the Premises in good order, condition and repair, shall exercise and perform good maintenance practices,
specifically Including the procurement and maintenance of the service contracts required by Paragraph 7.1(b) below. Lessees obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all
improvements thereon or a part thereof in good order, condition and state of repair. Lessee shall, during the term of this Lease, keep the exterior appearance of the Building in a first-class condition consistent with the exterior appearance of
other similar facilities of comparable age and size in the vicinity, including, when necessary, the exterior repainting of the Building.



(b) Service Contracts. Lessee shall, at Lessees sole expense, procure and maintain contracts, with copies to Lessor,
in customary form and substance for, and with contractors specializing and experienced in the maintenance of the following equipment and improvements, if any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler, and pressure
vessels, (iii) fire extinguishing systems, including fire alarm and/or smoke detection, (iv) landscaping and irrigation systems, and (v) roof covering and drains.



(c) Replacement. Subject to Lessees indemnification of Lessor as set forth in Paragraph
8.7 below, and without relieving Lessee of liability resulting from Lessees failure to exercise and perform good maintenance practices, if the Basic Elements described in Paragraph 7.1(b) cannot be repaired other than at a cost which is in
excess of 50% of the cost of replacing such Basic Elements, then such Basic Elements shall be replaced by Lessor, and the cost thereof shall be prorated between the Parties and Lessee shall only be obligated to pay, each month during the remainder
of the term of this Lease, on the date on which Base Rent is due, an amount equal to the product of multiplying the cost of such replacement by a fraction, the numerator of which is one, and the denominator of which is the number of months of the
useful life of such replacement as such useful life is specified pursuant to Federal income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then commercially reasonable in the judgment of
Lessors accountants), with Lessee reserving the right to prepay its obligation at any time.



7.2 Lessors Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 9 (Damage or Destruction) and 14
(Condemnation), it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises, or the equipment therein, all of which obligations are intended to be that of the Lessee. It is the
intention of the Parties that the terms of this Lease govern the respective obligations of the Parties as to maintenance and repair of the Premises, and they expressly waive the benefit of any statute now or hereafter in effect to the extent it is
inconsistent with the terms of this Lease.



7.3 Utility
Installations; Trade Fixtures; Alterations.



(a) Definitions; Consent Required. The term Utility Installations refers to all floor and window coverings, air lines, power panels, electrical distribution, security and fire protection systems, communication
systems, lighting fixtures, HVAC equipment, plumbing, and fencing in or on the Premises. The term Trade Fixtures shall mean Lessees machinery and equipment that can be removed without doing material damage to the Premises.
The term Alterations shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion. Lessee Owned Alterations and/or Utility Installations
are defined as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a). Lessee shall not make any Alterations or Utility Installations to the Premises without Lessors prior written
consent. Lessee may, however, make non-structural Alterations and Utility Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not
involve puncturing, relocating or removing the roof or any existing walls, and the cumulative cost thereof during this Lease as extended does not exceed $50,000 in the aggregate or $10,000 in any one year.



(b) Consent. Any Alterations or Utility
Installations that Lessee shall desire to make and which require the consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessees: (i) acquiring all applicable
governmental permits, (ii) furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt
and expeditious manner. Any Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications. For work
which costs an amount equal to the greater of one months Base Rent, or $10,000, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to one and one-half times the estimated cost of such
Alteration or Utility Installation and/or upon Lessees posting an additional Security Deposit with Lessor.



(c) Indemnification. Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been
furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanics or materialmens lien against the Premises or any interest therein. Lessee shall give Lessor not less than ten (10) days
notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim or demand, then Lessee shall, at its sole
expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof. If Lessor shall require, Lessee shall furnish a surety bond
in an amount equal to one and one-half times the amount of such contested lien, claim or demand, indemnifying Lessor against liability for the same. If Lessor elects to participate in any such action, Lessee shall pay Lessors attorneys
fees and costs.



SEE ADDENDUM



7.4 Ownership; Removal; Surrender; and Restoration.



(a)Ownership. Subject to Lessors right
to require removal or elect ownership as hereinafter provided, all Alterations and Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect in writing to be the owner
of all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed per Paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or termination of this
Lease, become the property of Lessor and be surrendered by Lessee with the Premises.



(b)Removal. Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the
expiration or termination of this Lease, Prior to the installations of same, Lessee may inquire of Lessor whether Lessor will require removal of such items by Lessee by the expiration or termination of the Lease, and Lessor shall notify Lessee
within five (5) business days of Lessees inquiry. Lessor may require the removal at any time of all or any part of any Lessee Owned Alterations or Utility Installations made without the required consent.



(c) Surrender/Restoration. Lessee shall
surrender the Premises by the Expiration Date or any earlier termination date, with all of the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and
tear expected. Ordinary wear and tear shall not include any damage or deterioration that would have been prevented by good maintenance practice. Lessee shall repair any damage occasioned by the installation, maintenance or removal of
Trade Fixtures, Lessee Owned Alterations and/or Utility Installations, furnishings, and equipment as well as the removal of any storage tank installed by or for Lessee, and the removal, replacement, or remediation of any soil, material or
groundwater contaminated by Lessee. Trade Fixtures shall remain the property of Lessee and shall be removed by Lessee. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the written consent of Lessor shall
constitute a holdover under the provisions of Paragraph 26 below.



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8.Insurance; Indemnity.



8.1 Payment For Insurance.Lessee shall pay for all insurance required under Paragraph 8 except to the
extent of the cost attributable to liability insurance carried by Lessor under Paragraph 8.2(b) in excess of $2,000,000 per occurrence. Premiums for policy periods commencing prior to or extending beyond the Lease term shall be prorated to
correspond to the Lease term. Payment shall be made by Lessee to Lessor within ten (10) days following receipt of an invoice.



8.2 Liability Insurance.



(a) Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability Policy of insurance protecting Lessee
and Lessor against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence
basis providing single limit coverage in an amount not less than $2,000,000 per occurrence with an Additional Insured-Managers or Lessors of Premises Endorsement and contain the Amendment of the Pollution Exclusion
Endorsement for damage caused by heat, smoke or fumes from a hostile fire. The Policy shall not contain any Intra-Insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this
Lease as an insured contract for the performance of Lessees indemnity obligations under this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder. All
insurance carried by Lessee shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only.



(b) Carried by Lessor. Lessor shall maintain liability insurance as described in Paragraph 8.2(a), in
addition to, and not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein.



8.3 Property Insurance  Building, Improvements and Rental Value.



(a) Building and Improvements. The Insuring Party shall obtain and keep in force a policy or policies
in the name of Lessor, with loss payable to Lessor, any groundless or, and to any Lender(s) insuring loss or damage to the Premises. The amount of such insurance shall be equal to the full replacement cost of the Premises, as the same shall exist
from time to time, or the amount required by any Lenders, but in no event more than the commercially reasonable and available Insurable value thereof. If Lessor is the Insuring Party, however, Lessee Owned Alterations and Utility Installations,
Trade Fixtures, and Lessees personal property shall be insured by Lessee under Paragraph 8.4 rather than by Lessor. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct
physical loss or damage (except the perils of flood and/or earthquake unless required by a Lender), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition, reconstruction or
replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation, and Inflation guard protection causing an
increase in the annual property Insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located. If such insurance
coverage has a deductible clause, the deductible amount shall not exceed $1,000 per occurrence, and Lessee shall be liable for such deductible amount in the event of an Insured Loss.



(b) Rental Value. The Insuring Party Lessor shall
obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one (1) year. Said insurance shall provide that in the event the Lease is terminated by reason of
an insured loss, the period of indemnity for such coverage shall be extended beyond the date of the completion of repairs or replacement of the Premises, to provide for one full years loss of Rent from the date of any such loss. Said insurance
shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise payable by Lessee, for the next twelve (12) month period. Lessee shall be
liable for any deductible amount in the event of such loss.



(c) Adjacent Premises. If the Premises are part of a larger building, or of a group of buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the
property insurance of such building or buildings if said increase is caused by Lessees acts, omissions, use or occupancy of the Premises.



8.4 Lessees Property/Business Interruption Insurance.



(a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessees
personal property, Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such Insurance shall be full replacement cost coverage with a deductible of not to exceed $1,000 per occurrence. The proceeds from any such Insurance shall be
used by Lessee for the replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations. Lessee shall provide Lessor with written evidence that such insurance is in force.



(b) Business Interruption. Lessee shall obtain and
maintain loss of income and extra expense insurance in amounts as will reimburse Lessee for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to
prevention of access to the Premises as a result of such perils.



(c) No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of insurance specified herein are adequate to cover Lessees property, business operations or
obligations under this Lease.



8.5 Insurance
Policies. Insurance required herein shall be by companies duly licensed or admitted to transact business in the state where the Premises are located, and maintaining during the policy term a General Policyholders Rating of at least
B+, V, as set forth in the most current issue of Bests Insurance Guide, or such other rating as
may be required by a Lender. Lessee shall not do or permit to be done anything which invalidates the required Insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of such Insurance or certificates
evidencing the existence and amounts of the required Insurance. No such policy shall be cancelable or subject to modification except after thirty (30) days prior written notice to Lessor. Lessee shall, at least thirty (30) days prior to the
expiration of such policies, furnish Lessor with evidence of renewals or Insurance binders evidencing renewal thereof, or Lessor may order such insurance and charge the cost thereof to Lessee, which amount shall be payable by Lessee to Lessor
upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to procure and maintain the insurance required to be carried by it, the other Party
may, but shall not be required to, procure and maintain the same.



8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor each hereby release and relieve the other, and waive their entire right to recover damages against the other, for loss of or
damage to its property arising out of or incident to the perils required to be insured against herein. The effect of such releases and waivers is not limited by the amount of insurance carried or required, or by any deductibles applicable hereto.
The Parties agree to have their respective property damage insurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee, as the case may be, so long as the insurance is not invalidated thereby.



8.7 Indemnity. Except for Lessors gross
negligence or willful misconduct, Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and its agents, Lessors master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or
damages, liens, judgments, penalties, attorneys and consultants fees, expenses and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Lessee. If any action or proceeding is
brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessees expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not
have first paid any such claim in order to be defended or indemnified.



8.8 Exemption of Lessor from Liability. Except for Lessors negligence or willful misconduct Lessor shall not be liable for injury or damage to the person or goods, wares, merchandise or other property of Lessee,
Lessees employees contractors, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage,
obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon other portions of
the Building of which the Premises are a part, or from other source or places. Lessor shall not be liable for any damages arising from any act or neglect of any other tenant of Lessor.



9.Damage or Destruction.



9.1 Definitions.



(a) Premises Partial Damage shall mean damage or destruction to the improvements on the Premises, other than Lessee
Owned Alterations and Utility installations, which can reasonably be repaired in six (6) months or less from the date of the damage or destruction.



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Lessor shall notify Lessee in writing within thirty (30) days from the date of the damage or destruction as to whether or not the damage is Partial or Total.



(b) Premises Total
Destruction shall mean damage or destruction to the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in six (6) months or less from the date of the damage or
destruction. Lessor shall notify Lessee in writing within thirty (30) days from the date of the damage or destruction as to whether or not the damage is Partial or Total.



(c)Insured Lossshall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations and Utility Installations
and Trade Fixtures, which was caused by an event required to be covered by the Insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved.



(d) Replacement Cost shall mean the cost
to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Applicable Requirements, and
without deduction for depreciation.



(e)Hazardous Substance Condition shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the
Premises.



9.2Partial Damage - Insured
Loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessors expense, repair such damage (but not Lessees Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably
possible and this Lease shall continue in full force and effect; provided, however, that Lessee shall, at Lessors election, make the repair of any damage or destruction the total cost to repair of which is $10,000 or less, and, in such event,
Lessor shall make any applicable Insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the required Insurance was not in force or the Insurance proceeds are not sufficient to effect such
repair, the Insuring Party shall promptly contribute the shortage in proceeds (except as to the deductible which is Lessees responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact
that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the
unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within ten (10) days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds
or adequate assurance thereof within said ten (10) day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not
received, Lessor may nevertheless elect by written notice to Lessee within ten (10) days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall
remain in full force and effect, or have this Lease terminate thirty (30) days thereafter. Lessee shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to
flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some Insurance coverage, but the net proceeds of any such Insurance shall be made available for the repairs if made by either Party.



9.3 Partial Damage - Uninsured Loss. If a Premises
Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessees expense), Lessor may either: (i) repair such damage as soon as reasonably
possible at Lessors expense, In which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to Lessee within thirty (30) days after receipt by Lessor of knowledge of the occurrence of
such damage. Such termination shall be effective sixty (60) days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within ten (10) days after receipt of the termination notice to give
written notice to Lessor of Lessees commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within thirty (30) days after making such
commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the required funds are available. If Lessee does not make the required commitment, this
Lease shall terminate as of the date specified in the termination notice.



9.4 Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate sixty (60) days following such Destruction. If the damage or
destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessors damages from Lessee, except as provided Paragraph 8.6.



9.5 Damage Near End of Term. If at any time during the last six (6) months of this Lease there is
damage for which the cost to repair exceeds one (1) months Base Rent, whether or not an Insured Loss either party may terminate this Lease effective sixty (60) days following the date of occurrence of such damage by giving a written
termination notice to the other within thirty (30) days after the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may
preserve this Lease by, (a) exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof) if the damage is not an Insured Loss needed to make the repairs on or before the earlier of (i) the
date which is ten days after Lessees receipt of Lessors written notice purporting to terminate this Lease, or (ii) the day prior to the date upon which such option expires. If Lessee duly exercises such option during such period and
provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceed if the damage is not an Insured loss Lessor shall, at Lessors commercially reasonable expense, repairs such damage as soon as reasonably
possible and this Lease shall continue in full force and effect. If Lessee fails to exercise such option and provide such funds or assurance if the damage is not an Insured Loss during such period, then this Lease shall terminate on the date
specified in the termination notice and Lessees option shall be extinguished.



9.6 Abatement of Rent; Lessees Remedies.



(a) Abatement. In the event of Premises Partial Damage or Premises Total Destruction or a Hazardous Substance Condition for which
Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which Lessees use of the Premises is
impaired, but not to exceed the proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability for any such damage, destruction, remediation, repair or
restoration except as provided herein.



(b)
Remedies. If Lessor shall be obligated to repair or restore the Premises and does not commence, in a substantial and meaningful way, such repair or restoration within forty-five (45) days after such obligation shall accrue, Lessee may, at any
time prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice, of Lessees election to terminate this Lease on a date not less than sixty (60) days following the
giving of such notice. If Lessee gives such notice and such repair or restoration is not commenced within thirty (30) days thereafter, this Lease shall terminate as of the date specified in said notice. If the repair or restoration is commenced
within said thirty (30) days, this Lease shall continue in full force and effect. Commence shall mean either the unconditional authorization of the preparation of the required plans, or the beginning of the actual work on the
Premises, whichever first occurs.



9.7
Termination-Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor
shall, in addition, return to Lessee so much of Lessees Security Deposit as has not been, or is not then required to be, used by Lessor.



9.8 Waive Statutes. Lessor and Lessee agree that the terms of this Lease shall govern the effect of any damage to or destruction of
the Premises with respect to the termination of this Lease and hereby waive the provisions of any present or future statute to the extent inconsistent herewith.



SEE ADDENDUM



10. Real Property Taxes.



10.1 Definition of Real Property Taxes. As used herein, the term Real Property Taxes shall Include any form of assessment; real estate, general, special, ordinary or
extraordinary, or rental levy or tax (other than inheritance, personal income or estate taxes); improvement bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor In the Premises, Lessors right to
other income therefrom, and/or Lessors business of leasing, by any authority having the direct or indirect power to tax and where the funds are generated



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with reference to the Building address and where the proceeds so generated are to be applied by the city, county or other local taxing authority of a
jurisdiction within which the Premises are located. The term Real Property Taxes shall also include any tax, fee, levy, assessment or charge, or any increase therein, imposed by reason of events occurring during the term of this
Lease, including but not limited to, a change in the ownership of the Premises. .



10.2



(a)
Payment of Taxes. Lesee shall pay the Real Property Taxes applicable to the Premises during the term of this Lease. Subject to Paragraph 10.2(b), all such payments shall be made at least ten (10) days prior to any delinquency date. Lessee
shall promptly furnish Lessor with satisfactory evidence that such taxes have been paid. If any such taxes shall cover any period of time prior to or after the expiration or termination of this Lease, Lessees share of such taxes shall be
prorated to cover only that portion of the tax bill applicable to the period that this Lease is in effect, and Lessor shall reimburse Lessee for any overpayment. If Lesee shall fail to pay any required Real Property Taxes, Lessor shall have the
right to pay the same, and Lessee shall reimburse Lessor therefor upon demand.



(b) Advance Payment. In the event Lessee incurs a late charge on the third missed Rent payment, and all missed Rent payments
thereafter, Lessor may, at Lessors option, estimate the current Real Property Taxes, and require that such taxes be paid in advance to Lessor by Lessee, either: (i) in a lump sum amount equal to the installment due, at least twenty (20) days
prior to the applicable delinquency date, or (ii) monthly in advance with the payment of the Base Rent. If Lessor elects to require payment monthly in advance, the monthly payment shall be an amount equal to the amount of the estimated installment
of taxes divided by the number of months remaining before the month in which said installment becomes delinquent. When the actual amount of the applicable tax bill is known, the amount of such equal monthly advance payments shall be adjusted as
required to provide the funds needed to pay the applicable taxes. If the amount collected by Lessor is insufficient to pay such Real Property Taxes when due, Lessee shall pay Lessor, upon demand, such additional sums as are necessary to pay such
obligations. All moneys paid to Lessor under this Paragraph may be intermingled with other moneys of Lessor and shall not bear interest. In the event of a Breach by Lessee in the performance of its obligations under this Lease, then any balance of
funds paid to Lessor under the provisions of this Paragraph may at the option of Lessor, be treated as an additional Security Deposit.



10.3 Joint Assessment. If the Premises are not separately assessed, Lessees liability shall be an equitable proportion of the Real Property
Taxes for all of the land and improvements included within the tax parcel assessed, such proportion to be conclusively determined by Lessor from the respective valuations assigned in the assessors work sheets or such other information as may
be reasonably available.



10.4 Personal Property Taxes.
Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee. When possible, Lessee shall cause such
property to be assessed and billed separately from the real property of Lessor. If any of Lessees said personal property shall be assessed with Lessors real property, Lessee shall pay Lessor the taxes attributable to Lessees
property within ten (10) days after receipt of a written statement.



11.
Utilities. Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon. If any such services are not separately metered to
Lessee, Lessee shall pay a reasonable proportion, to be determined by Lessor, of all charges jointly metered.



12. Assignment and Subletting.



12.1 Lessors Consent Required.



(a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, assign or
assignment) or sublet all or any part of Lessees interest in this Lease or in the Premises without Lessors prior written consent.



(b) A change in the control of Lessee shall constitute an assignment requiring consent. The transfer, on a cumulative basis, of fifty
percent (50%)or more of the voting control of Lessee shall constitute a change in control for this purpose.



(c) The involvement of Lessee or its assets in any transaction, or series of transaction (by way of merger, sale, acquisition, financing,
transfer, leveraged buy-out or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessees assets occurs, which resultsor will result in a reduction of the Net Worth of Lessee by an amount greater than fifty
percent (50%) such Net Worth as it was represented at the time of the execution of this Lease or at the time of the most recent assignment to which Lessor has consented, or as it exists immediately prior to said transaction or transactions
constituting such reduction, whichever was or is greater, shall be considered an assignment of this Lease to which Lessor may withhold its consent. Net Worth of Lessee shall mean the net worth of Lessee (excluding any guarantors)
established under generally accepted accounting principles.



(d) An assignment or subletting without consent shall, at Lessors option, be a Default curable after notice per Paragraph 13.1(c), or a noncurable Breach without the necessity of any notice and grace period. If
Lessor elects to treat such unapproved assignment or subletting as a noncurable Breach, Lessor may either: (i) terminate this Lease, or (ii) upon thirty (30) days written notice, increase the monthly Base Rent to one hundred ten percent (110%) of
the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held by Lessee shall be subject to similar adjustment.to one hundred ten percent (110%) of the
price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the Lease term shall be increased to One Hundred Ten Percent (110%) of the scheduled adjusted rent.



(e) Lessees remedy for any breach of Paragraph 12.1 by
Lessor shall be limited to compensatory damages and/or injunctive relief.



12.2 Terms and Conditions Applicable to Assignment and Subletting.



(a) Regardless of Lessors consent, any assignment or subletting shall not: (i) be effective without the express written assumption
by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary liability of Lessee for the payment of Rent or for the performance of any other obligations to
be performed by Lessee,



(b) Lessor may accept
Rent or performance of Lessees obligations from any person other than Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall
constitute a waiver or estoppel of Lessors right to exercise its remedies for Lessees Default or Breach.



(c) Lessors consent to any assignment or subletting shall not constitute a consent to any subsequent assignment or subletting.



(d) In the event of any Default or Breach by
Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessees obligations under this Lease, including any assignee or sublessee, without first exhausting Lessors remedies
against any other person or entity responsible therefore to Lessor, or any security held by Lessor.



(e) Each request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to Lessors
determination as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modification of the Premises, if any, Lessee agrees to
provide Lessor with such other or additional information and/or documentation as may be reasonably requested.



(f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment or entering into such sublease, be
deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said assignment or sublease, other than such obligations as are
contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing.



12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any subletting by Lessee of all or
any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein:



(a) Lessee hereby assigns and transfers to Lessor all of Lessees interest in all Rent payable on any sublease, and Lessor may
collect such Rent and apply same toward Lessees obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessees obligations, Lessee may collect said Rent. Lessor shall not, by reason of the
foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of Lessees obligations to such sublessee. Lessee hereby
irrevocably authorizes and directs any such sublessee, upon receipt of a written notice



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from Lessor stating that a Breach exists In the performance of Lessees obligations under this Lease, to pay to Lessor all Rent due and to become due
under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary.



(b) In the event of a Breach by Lessee,
Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided,
however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor.



(c) Any matter requiring the consent of the sublessor under a sublease shall also require the consent of
Lessor.



(d) No sublessee shall further
assign or sublet all or any part of the Premises without Lessors prior written consent.



(e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the
Default of Lessee within the grace period, if any, specified in such notice. The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee.



13. Default; Breach; Remedies.



13.1 Default; Breach. A Default is defined as a
failure by the Lessee to comply with or perform any of the terms, covenants, conditions or rules under this Lease. A Breach is defined as the occurrence of one or more of the following Defaults, and the failure of Lessee to cure
such Default within any applicable grace period:



(a) The abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of security, or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result
thereof, or without providing reasonable assurances to minimize potential vandalism.



(b) The failure of Lessee to make any payment of Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lessor
or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation under this Lease which endangers or threatens life or property, where such failure continues for a period of five (5) business
days following written notice to Lessee.



(c)
The failure by Lessee to provide (I) reasonable written evidence of compliance with Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) a Tenancy Statement, (v) a requested
subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 42 (easements), or (viii) any other documentation or information which Lessor may reasonably require of Lessee under the terms of
this Lease, where any such failure continues for a period of twenty (20) days following written notice to Lessee.



(d) A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph 40
hereof, other than those described in subparagraphs 13.1 (a), (b) or (c), above, where such Default continues for a period of thirty (30) days after written notice; provided, however, that if the nature of Lessees Default is such that more
than thirty (30) days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion.



(e) The occurrence of any of the following events: (i) the
making of any general arrangement or assignment for the benefit of creditors; (ii) becoming a debtor as defined in 11 U.S.C. § 101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is
dismissed within sixty (60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessees assets located at the Premises or of Lessees interest in this Lease, where possession is not restored to
Lessee within thirty (30) days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessees assets located at the Premises or of Lessees interest in this Lease, where such seizure is not discharged within
thirty (30) days; provided, however, in the event that any provision of this subparagraph (e) is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions.



(f) The discovery that any financial
statement of Lessee or of any Guarantor given to Lessor was materially false.



(g) If the performance of Lessees obligations under this Lease is guaranteed: (i) the death of a Guarantor, (ii) the termination of
a Guarantors liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a Guarantors becoming Insolvent or the subject of a bankruptcy filing, (iv) a Guarantors refusal to honor the
guaranty, or (v) a Guarantors breach of its guaranty obligation on an anticipatory basis, and Lessees failure, within sixty (60) days following written notice of any such event, to provide written alternative assurance or security,
which, when coupled with the then existing resources of Lessee, equals or exceeds the combined financial resources of Lessee and the Guarantors that existed at the time of execution of this Lease.





13.2 Remedies. If Lessee fails to perform any of its affirmative duties or obligations, within ten (10) days after written notice (or in case of an emergency, without notice), Lessor may, at its option, perform such duty or
obligation on Lessees behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. The costs and expenses of any such performance by Lessor shall be due
and payable by Lessee upon receipt of invoice therefor. If any check given to Lessor by Lessee shall not be honored by the bank upon which it is drawn, Lessor, at its option, may require all future payments to be made by Lessee to be by
cashiers check. In the event of a Breach, Lessor may, with or without further notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach:



(a) Terminate Lessees right to possession of the
Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent which had been earned at the time
of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that the Lessee proves could have been
reasonably avoided; (iii) 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 rental loss that the Lessee proves could be reasonably avoided; and (iv)
any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessees failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom,
including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys fees, and that portion of any leasing commission paid by
Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision (iii) of the immediately preceding sentence shall be computed by discounting such amount at
the discount rate of the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent (1%). Efforts by Lessor to mitigate damages caused by Lessees Breach of this Lease shall not waive
Lessors right to recover damages under Paragraph 12. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding any unpaid Rent and damages as are
recoverable therein, or Lessor may reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rent or quit, or to perform or quit
given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and the
failure of Lessee to cure the Default within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided for in this Lease and/or by said statute.



(b) Continue the Lease and Lessees
right to possession and recover the Rent as it becomes due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of maintenance, efforts to relet, and/or the appointment of a receiver to protect the Lessors
interests, shall not constitute a termination of the Lessees right to possession.



(c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises are located.
The expiration or termination of this Lease and/or the termination of Lessees right to possession shall not relieve Lessee from liability



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under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by reason of Lessees occupancy of the
Premises.



13.3 Inducement Recapture. Any agreement for
free or abated rent or other charges, or for the giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessees entering into this Lease, all of which concessions are hereinafter referred to as
Inducement Provisions, shall be deemed conditioned upon Lessees full and faithful performance of all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any rent, other charge, bonus,
inducement or consideration theretofore abated, given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by Lessee to Lessor, notwithstanding any subsequent cure of said Breach by Lessee on a pro-rata basis
based upon the ratio of the time remaining in the initial term of the Lease to the then expired portion of the Lease. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not be deemed a
waiver by Lessor of the provisions of this paragraph unless specifically so stated in writing by Lessor at the time of such acceptance.



13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease,
the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be
received by Lessor within five (5) days after such amount shall be due, more than once in any twelve (12) month period, or twice of the entire Term of the Lease, (including any extensions) then, without any requirement for notice to Lessee, Lessee
shall pay to Lessor a one-time late charge equal to five percent (5%) of each such overdue amount. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of such late
payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessees Default Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted hereunder. In the
event that a late charge is payable hereunder, whether or not collected, for three (3) consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessors option, become due and
payable quarterly in advance.



13.5 Interest. Any
monetary payment due Lesssor hereunder, other than late charges, not received by Lessor, when due as to scheduled payments (such as Base Rent) or within thirty (30) days following the date on which it was due for non-scheduled payment, shall bear
interest from the date when due, as to scheduled payments, or the thirty-first (31st) day after it was due as to non-scheduled payments. The interest (Interest) charged shall be equal to the prime rate reported in the Wall Street
Journal as published closest prior to the date when due plus four percent (4%), but shall not exceed the maximum rate allowed by law. Interest is payable in addition to the potential late charge provided for in Paragraph 13.4.



13.6 Breach by Lessor.



(a) Notice of Breach. Lessor shall not be deemed in
breach of this Lease unless Lessor fails within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than thirty (30) days after receipt by Lessor,
and any Lender whose name and address shall have been furnished Lessee in writing for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessors
obligation is such that more than thirty (30) days are reasonably required for its performance, then Lessor shall not be in breach if performance is commenced within such thirty (30) day period and thereafter diligently pursued to completion.



(b) Performance by Lessee on Behalf of
Lessor. In the event that neither Lessor nor Lender cures said breach within thirty (30) days after receipt of said notice, or if having commenced said cure they do not diligently pursue it to completion, then Lessee may elect to cure said
breach at Lessees expense and offset from Rent an amount equal to the greater of one months Base Rent or the Security Deposit, and to pay an excess of such expense under protest, reserving Lessees right to reimbursement from
Lessor. Lessee shall document the cost of said cure and supply said documentation to Lessor.



14. Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat of the exercise of said power (collectively Condemnation), this
Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than ten percent (10%) of any building portion of the premises, or more than twenty-five percent (25%) of
the land area portion of the premises not occupied by any building, is taken by Condemnation, Lessee may, at Lessees option, to be exercised in writing within ten (10) days after Lessor shall have given Lessee written notice of such taking (or
in the absence of such notice, within ten (10) days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance
with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation.
Condemnation awards and/or payments shall be the property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that Lessee
shall be entitled to any compensation for Lessees relocation expenses, loss of business goodwill and/or Trade Fixtures, without regard to whether or not this Lease is terminated pursuant to the provisions of this Paragraph. All Alterations and
Utility Installations made to the Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefor. In the event that this Lease
is not terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such Condemnation.



15. Brokers Fee.



SEE ADDENDUM



16.
Estoppel Certificates.



(a) Each Party (as
Responding Party) shall within five (5) days after written notice from the other Party (the Requesting Party) execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to
the then most current Estoppel Certificate form published by the American Industrial Real Estate Association, plus such additional information, confirmation and/or statements as may be reasonably requested by the Requesting Party.



(b) If the Responding Party shall fall to
execute or deliver the Estoppel Certificate within such five (5) day period, the Requesting Party may execute an Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may be represented by the
Requesting Party, (ii) there are no uncured defaults in the Requesting Partys performance, and (iii) if Lessor is the Requesting Party, not more than one months rent has been paid in advance. Prospective purchasers and encumbrancers may
rely upon the Requesting Partys Estoppel Certificate, and the Responding Party shall be estopped from denying the truth of the facts contained in said Certificate.



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(c) If Lessor desires to finance, refinance, or sell the premises, or any part thereof,
Lessee and all Guarantors shall deliver to any potential lender or purchaser designated by Lessor such current financial statements as may be reasonably required by such lender or purchaser, including but not limited to Lessees financial
statements for the past three (3) years which statements shall be audited if it is Lessees custom to do so, or otherwise, such financial statements shall be certified as accurate by Tenants President or CFO. All such financial statements
shall be received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein set forth.



17. Definition of Lessor. The term Lessor as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or,
if this is a sublease, of the Lessees interest in the prior lease. In the event of a transfer of Lessors title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any
unused Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations
and/or covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined.
Notwithstanding the above, and subject to the provisions of Paragraph 20 below, the original Lessor under this Lease, and all subsequent holders of the Lessors interest in this Lease shall remain liable and responsible with regard to the
potential duties and liabilities of Lessor pertaining to Hazardous Substances as outlined in Paragraph 6 above.



18. Severability. The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any
other provision hereof.



19. Days. Unless otherwise specifically
indicated to the contrary, the word days as used in this Lease shall mean and refer to calendar days.



20. Limitation on Liability. Subject to the provisions of Paragraph 17 above, the obligations of Lessor under this Lease shall not constitute personal obligations
of Lessor, the Individual partners of Lessor or its or their individual partners, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with
respect to this Lease, and shall not seek recourse against the individual partners of Lessor, or its or their individual partners, directors, officers or shareholders, or any of their personal assets for such satisfaction.



21. Time of Essence. Time is of the essence with respect to the performance of all
obligations to be performed or observed by the Parties under this Lease.



22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be
effective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to
the nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party, The liability (including court costs and Attorneys fees), of any Broker
with respect to negotiation, execution, delivery or performance by either Lessor or Lessee under this Lease or any amendment or modification hereto shall be limited to an amount up to the fee received by such Broker pursuant to this Lease; provided,
however, that the foregoing limitation on each Brokers liability shall not be applicable to any gross negligence or willful misconduct of such Broker.



23. Notices.



23.1 Notice Requirements. All notices required or permitted by this Lease shall be in writing and may be delivered in person (by hand or by
courier) or may be sent by certified or registered mall or U.S. Postal Service Express Mail, with postage prepaid, and shall be deemed sufficiently given if served in a manner specified in this Paragraph 23. The addresses noted adjacent to a
Partys signature on this Lease shall be that Partys address for delivery or mailing of notices. Either Party may by written notice to the other specify a different address for notice, A copy of all notices to Lessor shall be concurrently
transmitted to such party or parties at such addresses as Lessor may from time to time hereafter designate in writing.



23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of delivery shown
on the receipt card, or if no delivery date is shown, the postmark thereon. Notices delivered by United States Express Mail or overnight courier that guarantee next day delivery shall be deemed given on the business day after delivery of the same to
the postal Service or courier. If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day.



24. Waivers. No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any other term, covenant
or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof. Lessors consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of
Lessors consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent. The acceptance of Rent by Lessor shall not be a
waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection therewith, which such
statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment.



25. Recording. Either Lessor or Lessee shall, upon request of the other, execute, acknowledge and deliver to the other a short form
memorandum of this Lease for recording purposes. The Party requesting recordation shall be responsible for payment of any fees applicable thereto.



26. No Right To Holdover. Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. In the
event that Lessee holds over, then the Base Rent shall be increased to one hundred fifty percent (150%) of the Base Rent applicable during the month Immediately preceding the expiration or termination. Nothing contained herein shall be construed as
consent by Lessor to any holding over by Lessee.



27. Cumulative
Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.



28. Covenants and Conditions; Construction of Agreement. All provisions of this Lease to be observed or performed by Lessee are both covenants and conditions.
In construing this Lease, all headings and titles are for the convenience of the parties only and shall not be considered a part of this Lease. Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall
not be construed as if prepared by one of the parties, but rather according to its fair meaning as a whole, as if both parties had prepared it.



29. Binding Effect; Choice of Law. This Lease shall be binding upon the parties, their personal representatives, successors and assigns and be governed by the laws
of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are located.



30. Subordination; Attornment; Non-Disturbance.



30.1 Subordination. This Lease and any Option granted hereby shall be subject and subordinate to any ground lease,
mortgage, deed of trust, or other hypothecation or security device (collectively, Security Device), now or hereafter placed upon the Premises, to any and all advances made on the security thereof and to all renewals,
modifications, and extensions thereof. Lessee agrees that the holders of any such Security Devices (in this Lease together referred to as Lessors Lender) shall have no liability or obligation to perform any of the obligations of
Lessor under this Lease accruing prior to taking title to the Premises. Any Lender may elect to have this Lease and/or any Option granted hereby superior to the lien of its Security Device by giving written notice, thereof to Lessee, whereupon this
Lease and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation thereof.



30.2 Attornment. Subject to the non-disturbance provisions of Paragraph 30.3, Lessee agrees to attorn to a Lender or any other party who acquires
ownership of the Premises by reason of a foreclosure of a Security Device, and that in the event of such foreclosure, such new



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owner shall not: (i) be liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership; (ii) be
subject to any offsets or defenses which Lessee might have against any prior lessor, or (iii) be bound by prepayment of more than one (1) months rent.



30.3 Non-Disturbance. With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessees subordination of
this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a Non-Disturbance Agreement) from the Lender which Non-Disturbance Agreement provides that Lessees possession of the Premises, and
this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner of the Premises. Further, within sixty (60) days after the execution of this Lease, Lessor
shall use its commercially reasonable efforts to obtain a Non-Disturbance Agreement from the holder of any pre-existing Security Device which is secured by the Premises. In the event that Lessor is unable to provide the Non-Disturbance Agreement
within said sixty (60) days, then Lessee may, at Lessees option, directly contact Lessors lender and attempt to negotiate for the execution and delivery of a Non-Disturbance Agreement.



30.4 Self-Executing. The agreements contained in this Paragraph 30
shall be effective without the execution of any further documents; provided however, that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and Lessor shall execute such further
writings as may be reasonably required to separately document any subordination, attornment and/or Non-Disturbance Agreement provided for herein.



31. Attorneys Fees. If any Party brings an action or proceeding involving the Premises to enforce the terms hereof or to declare rights hereunder, the
Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or
proceeding is pursued to decision or judgment. The term, Prevailing Party shall include, without limitation, a Party who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement,
judgment, or the abandonment by the other Party of its claim or defense. The attorneys fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys fees reasonably
incurred. In addition, Lessor shall be entitled to attorneys fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently
commenced in connection with such Default or resulting Breach.



32.
Lessors Access; Showing Premises; Repairs. Lessor and Lessors agents shall have the right to enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable prior notice for the purpose
of showing the same to prospective purchasers, lenders, or lessees, during the last six (6) months of the Term, and making such alterations, repairs, improvements or additions to the Premises as Lessor may deem necessary. All such activities shall
be without abatement of rent or liability to Lessee. Lessor may at any time place on the Premises any ordinary For Sale signs provided it is clear that only the Premise is for sale and not Lessees business. Lessor may during
the last six (6) months of the term hereof place on the Premises any ordinary For Lease signs. Lessee may at any time place on or about the Premises any ordinary For Sublease sign.



33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon
the Premises without Lessors prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to permit an auction.



34. Signs. Except for ordinary For Sublease signs, Lessee shall not place any sign upon the Premises without
Lessors prior written consent. All signs must comply with all Applicable Requirements.



35. Termination; Merger. Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination
hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all existing subtenancies. Lessors failure within ten (10) days
following any such event to elect to the contrary by written notice to the holder of any such lesser interest, shall constitute Lessors election to have such event constitute the termination of such interest.



36. Consents. Except as otherwise provided herein, wherever in this Lease the consent
of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lessors actual reasonable costs and expenses (including but not limited to architects, attorneys,
engineers and other consultants fees) incurred in the consideration of, or response to, a request by Lessee for any Lessor consent, including but not limited to consents to an assignment, a subletting or the presence or use of a
Hazardous Substance, shall be paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lessors consent to any act, assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of
this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such consent. The failure to specify herein any particular
condition to Lessors consent shall not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event
that either Party disagrees with any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail within ten (10) business
days following such request,



37.Guarantor.



37.1 Execution. The Guarantors, if any, shall each execute a
guaranty in the form most recently published by the American Industrial Real Estate Association, and each such Guarantor shall have the same obligations as Lessee under this Lease.



37.2 Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon request to provide:
(a) evidence of the execution of the guaranty, including the authority of the party signing on Guarantors behalf to obligate Guarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors
authorizing the making of such guaranty, (b) current financial statements, (c) a Tenancy Statement, or (d) written confirmation that the guaranty is still in effect.



38. Quiet Possession. Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on
Lessees part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof.



39. Options.



39.1 Definition. Option shall mean: (a) the right to extend the term of or renew this Lease or to extend or renew any lease that
Lessee has on other property of Lessor; (b) the right of first refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to purchase or the right of first refusal to purchase the Premises or other property of
Lessor.



39.2 Options Personal To Original Lessee. Each
Option granted to Lessee in this Lease is personal to the original Lessee, and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and, if requested by
Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or subletting.



39.3 Multiple Options. In the event that Lessee has any multiple Options to extend or renew this Lease, a later Option cannot be exercised unless
the prior Options have been validly exercised.



39.4 Effect
of Default on Options.



(a) Lessee shall
have no right to exercise an Option: (i) during the period commencing with the giving of any notice of Default and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (provided that notice thereof is given
Lessee), (iii) during the time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given three (3) or more notices of separate Default, whether or not the Defaults are cured, during the twelve (12) month period immediately
preceding the exercise of the Option.



(b) The
period of time within which an Option may be exercised shall not be extended or enlarged by reason of Lessees inability to exercise an Option because of the provisions of Paragraph 39.4(a).



(c) An Option shall terminate and be of no further force or
effect, notwithstanding Lessees due and timely exercise of the Option, if, after such exercise and prior to the commencement of the extended term, (i) Lessee fails to pay Rent for a period of thirty (30) days after such Rent becomes due
(without any necessity of Lessor to give notice thereof), (ii) Lessor gives to Lessee three (3) or more notices of separate Default during any twelve (12) month period, whether or not the Defaults are cured, or (iii) if Lessee commits a Breach of
this Lease.



40. Multiple Buildings. If the Premises are a part of a
group of buildings controlled by Lessor, Lessee agrees that it will observe all reasonable rules and regulations which Lessor may make from time to time for the management, safety, and care of said properties, including



| |  |         |  |                     
| |  | ------- |  | --------------------
| |  | PAGE 11 |  | Initials _____ _____



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the care and cleanliness of the grounds and including the parking, loading and unloading of vehicles, and that Lessee will pay its fair share of common
expenses incurred in connection therewith.



41. Security Measures.
Lessee hereby acknowledges that the rental payable to Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for
the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third parties.



42. Reservations. Lessor reserves to itself the right, from time to time, to grant, without the consent or joinder of Lessee, such easements, rights and
dedications that Lessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long as such easements, rights, dedications, maps and restrictions do not unreasonably interfere with the use of the Premises by Lessee. Lessee
agrees to sign any documents reasonably requested by Lessor to effectuate any such easement rights, dedication, map or restrictions.



43. Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions
hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment under protest and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of
said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as
it was not legally required to pay.



44. Authority. If either
Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this
Lease on its behalf. Each party shall, within thirty (30) days after request, deliver to the other party satisfactory evidence of such authority.



45. Confilct. Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisions shall be controlled by the typewritten or
handwritten provisions.



46. Offer. Preparation of this Lease by
either Party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto.



47. Amendments. This Lease may be modified only in writing, signed by the Parties in
interest at the time of the modification. As long as they do not materially change Lessees obligations hereunder, Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be reasonably required by a Lender in
connection with the obtaining of normal financing or refinancing of the Premises.



48. Multiple Parties. If more than one person or entity is named herein as either Lessor or Lessee, such multiple Parties shall have joint and several responsibility to comply with the terms of this Lease.



49. Mediation and Arbitration of Disputes. An Addendum requiring the
Mediation and/or the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease ̈is x is not attached to this Lease.



LESSOR
AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS
EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES.



ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL
EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:



1.SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.



2.RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES, SAID INVESTIGATION SHOULD INCLUDE BUT
NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES THE STRUCTURAL INTEGRITY, THE CONDITION OF THEROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR LESSEES INTENDED
USE.



WARNING: IF THE PREMISES IS LOCATED IN A STATE OTHER
THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES IS LOCATED.



The parties hereto have executed this Lease at the place and on the dates specified above their respective signatures.



|             |  |  |  |  |  |              |  | 
|------------ |  |  |  |  |  | ------------ |  | 
|             |  |  |  | 
|Executed at: |  |  |  |  |  | Executed at: |  | 
|on:          |  |  |  |  |  | on:          |  | 



|           |  |                                               |  |  |  |            |  |                                                  
|---------- |  | --------------------------------------------- |  |  |  | ---------- |  | -------------------------------------------------
|           |  |                                               |  | 
|By LESSOR: |  | KLEIN INVESTMENTS, FAMILY LIMITED PARTNERSHIP |  |  |  | By LESSEE: |  | QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE, INC.
|           |  |                                               | 
|           |  |                                               |  |  |  |           



|              |  |                      |  |                        |  |               |  |                      
|------------- |  | -------------------- |  | ---------------------- |  | ------------- |  | ---------------------
|              |  |                      |  | A DELAWARE CORPORATION
|              |  |                      |  |                       
|By:           |  | /s/ William A. Klein |  |                        |  | By:           |  | /s/    W. Brian
Olson
|Name Printed: |  | WILLIAM A. KLEIN     |  |                        |  | Name Printed: |  | W. Brian Olson       
|Title:        |  | GENERAL PARTNER      |  |                        |  | Title:        |  | CFO                  



|               |  |                                          |  |  |  |                |  |         
|-------------- |  | ---------------------------------------- |  |  |  | -------------- |  | --------
|               |  |                                          |  | 
|By:            |  | /s/ CAROLYN KLEIN                        |  |  |  | By:            |  |         
|Name Printed:  |  | Carolyn Klein                            |  |  |  | Name Printed:  |  |         
|Title:         |  | General Partner                          |  |  |  | Title:         |  |         
|Address:       |  | 14 OAKCREST LANE NEWPORT BEACH, CA 92660 |  |  |  | Address:       |  |         
|Telephone:     |  | (949) 640-2226                           |  |  |  | Telephone:     |  | (      )
|Facsimile:     |  | (949) 640-2296                           |  |  |  | Facsimile:     |  | (      )
|Federal ID No. |  | 330734680                                |  |  |  | Federal ID No. |  |         



|NOTE: | These forms are often modified to meet changing requirements of law and industry needs. Always write or call to make sure youare utilizing the most current form: AMERICAN
INDUSTRIAL REAL ESTATE ASSOCIATION, 700 So. Flower Street, Suite 600,Los Angeles, California 90017. (213) 687-8777. Fax No. (213) 687-8616
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|        |  |                 
|------- |  | ----------------
|PAGE 12 |  | FORM 204N-R-2/97

©Copyright 1997 - By American Industrial Real Estate Association. All rights reserved.

No part of these works may be reproduced in any form without permission in writing.



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ADDENDUM



This Addendum (this Addendum) supplements that certain Standard Industrial/Commercial Single-Tenant Lease 
Net (the Lease) by and between Klein Investments, Family Limited Partnership (as Lessor) and Quantum Fuel System Technologies Worldwide, Inc., a Delaware corporation (as Lessee). To the extent that the provisions
of this Addendum conflict with the terms and conditions of the Lease, the terms of this Addendum shall control. Any capitalized terms not defined in this Addendum but defined in the Lease shall have the meaning ascribed to them in the Lease.



50. Base Rent. The Base Rent, as defined in Paragraph
1.5 of the Lease, shall be increased annually commencing on the first anniversary of the Commencement Date and on each anniversary thereof (each, an Adjustment Date) to an amount equal to 103% of the Base Rent payable by Lessee
immediately prior to each applicable Adjustment Date. Provided that Lessee is not in Breach (as defined in Section 13.1 of the Lease) of the Lease, monthly Base Rent shall be abated for the following months of the Original Term: 12, 25 and 37.



51. Condition of Premises.



51.1 Lessor and Lessee hereby acknowledge and agree that
Lessee has been occupying the Premises prior to the Commencement Date pursuant to that certain Standard Industrial/Commercial Single-Tenant Lease - Net dated August 18, 1997 between Lessor, as the lessor, and IMPCO TECHNOLOGIES, INC., a Delaware
corporation (IMPCO), as the lessee (the Prior Lease). IMPCO (or its affiliate, as a permitted assignee under the Lease) has subsequently assigned all of its right, title and interest in and to the Prior Lease to Lessee. As a
material inducement to Lessor to enter into the Lease, Lessee hereby acknowledges and agrees that Lessee is required to perform certain maintenance, repair and restoration items to the extent required to be performed by Lessee under the Prior Lease
prior to the expiration of the Original Term (as such may be extended pursuant to the terms of this Lease).



51.2 In Lessors sole discretion, Lessee shall be required to remove those improvements that are specific to its unique use,
including, without limitation, removal of any tanks that Lessee may cause to be installed in the Premises (including those installed in the Premises during the term of the Prior Lease, as defined below), however, Lessee shall not be required to
remove other improvements and Alterations, unless, at any time prior to the expiration of the Original Term of this Lease, (i) Lessee inquired of Lessor whether their removal would be required, and (ii) Lessor informed Lessee that their removal
would be required. Notwithstanding anything to the contrary in the Lease (including in this Addendum), in no event shall Lessee be required to remove any improvements relating to office space, loading doors or loading ramps.



52. Assignment and Subletting. In the event of any assignment or
subletting, Lessee shall pay over to Lessor fifty percent (50%) of all net rent (after deduction of assignment or subletting expenses) received by Lessee from any such assignee or sublessee, in excess of the Base Rent called for under the Lease, or,
in the case of a subletting of a portion of the Premises, in excess of such rent fairly allocable to such portion. In no event shall an assignee or sublessee have a Net Worth less than the Net Worth of Lessee as it was represented at the time of the
execution of the Lease.



53. Environmental. Lessee
acknowledges receipt of a Phase I Environmental Site Assessment for the Premises dated December 18, 1996, prepared by Levine-Fricke-Recon and accepts the Premises as stated therein.



54. Right of First Refusal. At any time during the term of this Lease
(the Term), in the event that Lessor receives a bona fide offer from a third party to purchase the Premises, or any part thereof, and Lessor desires to accept such offer, Lessor shall give Lessee seven (7) days notice in writing of
such offer setting forth the amount of the proposed price and all other terms and conditions of the offer. Lessee shall have the right of first refusal to purchase the Premises or portion thereof that are the subject of the offer by giving written
notice to Lessor of its intention to purchase within seven (7) days following receipt of Lessors notice at the same price and on the same terms as contained in any such offer. In the event Lessee does not give timely notice of its intention to
purchase the Premises within the foregoing period, the Lease and all of its terms and conditions shall remain in full force and effect, and Lessor and any purchaser or purchasers of the Premises shall be bound thereby. In the event that any such
offer is proposed in such a way as to be susceptible of complete acceptance only by a specific third party (such as an offer requiring an exchange of specific real property), Lessee shall, nonetheless, be entitled to exercise its right of first
refusal by proposing a





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substantially similar offer, which need not be identical in all respects; provided, however, that the economic, tax and other impact upon Lessor must be
identical, at no cost or expense to Lessor. Nothing contained in this Section 54 shall affect the terms of that certain Option to Purchase Agreement dated March 5, 2004 between Lessor and Lessee (the Option Agreement). In the event of a
conflict between the right of first refusal granted herein and the Option Agreement, the Option Agreement shall control so long as it remains in effect.



55. Estoppel Certificates. Notwithstanding anything in Section 16 of the Lease to the contrary, Lessee shall, within five (5) days after written
notice from Lessor, execute, acknowledge, and deliver to Lessor a statement in writing in a customary form as may be requested by any lender of Lessor (Lenders Estoppel Certificate). If Lessee fails to execute or deliver the
Lenders Estoppel Certificate within such five (5)-day period, Lessor may execute, on behalf of Lessee, the Lenders Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may be
represented by the Lessor; (ii) Lessee accepts the condition of the Premises; (iii) there are no uncured defaults in the Lessors performance; and (iv) not more than one months rent has been paid in advance. Prospective lenders may rely
upon the Lenders Estoppel Certificate, and as to such lender, Lessee shall be estopped from denying the truth of the facts contained in Lenders Estoppel Certificate.



56. Brokerage Commission. Lessor shall pay a brokerage commission equal to four percent (4%) of the total
consideration for the Lease (the Leasing Commission). The Leasing Commission shall be split 50/50 between Colliers-Seeley International Inc. and The Gibson Company (collectively, the Brokers). In the event Lessee exercises
its option to purchase the Premises pursuant to a separate Option to Purchase Agreement entered into by Lessor and Lessee concurrently with the execution of the Lease, Lessor shall pay the Brokers, at the closing of such sale transaction, a
brokerage commission equal to four percent (4%) of the total purchase price paid by Lessee, less such unamortized portion of the Leasing Commission previously paid by Lessor for any unexpired Term of the Lease (the Sales Commission). The
Sales Commission shall be split 50/50 between the Brokers. Each party shall defend, indemnify and hold the other party harmless from and against any and all claims for any such brokerage commission or finders fee on this transaction made by
any other person or entity through or on behalf of such other party. In the event either party is compelled to pay any commission or finders fee (other than the Sales Commission) with respect to the sale or lease of the Premises, Lessor and
Lessee shall split such commission or fee, subject to Lessees maximum contribution of One Hundred Thousand Dollars ($100,000.00).



57. Building Code Upgrades. In the event that any improvement(s) (including seismic upgrades) are required to the Premises as a result of building
code changes or other governmental mandate, to the extent that such improvements are required as a result of Lessees use of or operations in the Premises, Lessee shall pay all costs (without any cap on its obligations) associated therewith.
Otherwise, Lessor shall pay all costs associated therewith, not to exceed the sum of One Hundred Fifty Thousand Dollars ($150,000), over the Term of the Lease on the following terms and conditions. To the extent that the cost of such improvement(s)
is greater than $150,000 but less than or equal to $250,000 (which $100,000 range shall be referred to hereafter in this Section as the Apportionment Range), the incremental cost of the improvement(s) within the Apportionment Range shall
be split between Lessor and Lessee on a prorata basis based upon a ratio, the numerator of which shall be the remaining term of the Lease, and the denominator of which shall be the useful life of the improvement or improvements in question (which
useful life will be separately determined for each improvement). Lessee shall pay only its prorata share derived from such formula (which in no event shall exceed $100,000). To the extent that the cost of such improvements exceeds $250,000 during
the Term of the Lease, Lessor shall have the right to terminate the Lease, however, Lessee may defeat such termination right of Lessor by paying the full cost of such improvements that exceeds $250,000 within a reasonable time, not to exceed thirty
(30) days after such sums become due.



58. Lessor
Indemnity. Lessor shall indemnify, protect, defend and hold harmless Lessee and its agents, employees, officers, shareholders, directors, successors and assigns from and against any and all claims, damages, judgments, penalties, attorneys
and consultants fees, expenses and/or liabilities arising out of, involving, or in connection with, the negligent or willful misconduct of Lessor or its agents, employees or contractors. If any action or proceeding is brought against Lessee by
reason of any of the foregoing matters, Lessor shall, upon receipt of written notice from Lessee, defend the same at Lessors expense by counsel reasonably satisfactory to Lessee, and Lessee shall cooperate with Lessor in such defense. Lessee
need not have first paid any such claim in order to be defended or indemnified.



2



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59. Consequential Damages. The last sentence of Paragraph 8.8 of the Lease is hereby deleted and
replaced with the following: Notwithstanding a Partys negligence or breach of this Lease, such Party shall under no circumstances be liable for injury to the other Partys business or for loss of income or profit therefrom.



60. Abatement. The following language is hereby added
to the end of the first sentence of Paragraph 9.6(a) of the Lease: (or which would have been received from such insurance if it was carried as required under the terms of this Lease).



61. Remedies. The following language is hereby added to the end of
Paragraph 9.6(b) of the Lease: If the repair or restoration actually takes longer than 270 days (from the date of any damage or destruction) for any reason other than delays caused by Lessee, then Lessee may, any time after the expiration of
such period and prior to substantial completion, terminate this Lease by written notice to Lessor.



62. Assignment. The following paragraph shall be added to Paragraph 12 of the Lease:



(f) Any approval or disapproval required from Lessor pursuant to Paragraph 12 with respect to any
assignment or subletting shall be given within ten (10) business days after receipt by Lessor of written request for approval.



63. Definition of Lessor. The following language is hereby added to the end of the third sentence of Paragraph 17 of the Lease: provided that
the transferee assumes in writing the obligations of Lessor hereunder accruing subsequent to the effective date of the transfer.



64. Options. The following language is hereby added to the end of Paragraph 39.2 of the Lease: Notwithstanding the foregoing, all Options
shall be exercisable by any assignee who is an affiliate of Lessee (but not a subtenant or an unaffiliated third party).



65. Earthquake Insurance. In the event that any lender of Lessor shall require earthquake insurance with respect to all or part of the Premises,
the cost of such earthquake insurance shall be split equally between the parties. Otherwise, Lessee shall not be responsible for the cost of any earthquake insurance that Lessor may elect to maintain.



66. Subordination. Lessor, concurrent with the execution of the Lease,
shall use its best efforts to provide Lessee with a customary Subordination, Non-Disturbance and Attornment Agreement relative to any Security Devices in existence on the date of the Lease. Lessee reserves the right to review any such agreement.



67. Option to Renew. As defined in Section 39 of the
Lease, Lessee shall have one (1) option to extend the Term for five (5) years.



67.1 Exercise of Option. Lessee may exercise its right to so extend the Term only by delivering written notice to Lessor of
Lessees desire to so extend the Term (Extension Notice) no later than one hundred eighty (180) days nor earlier than three hundred (300) days prior to expiration of the Term (Extension Notice Period). Upon the exercise
by Lessee of the option to extend the Term, all references in this Lease shall mean and include the Term as so extended. Within thirty (30) days of receipt of the Extension Notice, Lessor shall prepare and deliver to Lessee at least two (2)
counterparts of an amendment to the Lease (Extension Amendment). The Extension Amendment shall provide for an adjustment in the Base Rent effective upon the commencement of the option Term to the fair market rental rate (the Fair
Market Rental Rate). Fair Market Rental Rate for the purposes of the Lease shall mean the annual amount per square foot that a willing, comparable, new non-renewal, non-equity, non-expansion tenant will pay for unencumbered space,
and a comparable landlord would accept, at arms length, giving appropriate consideration to annual rental rates per square foot, escalation reflecting free rent and/or no rent during the period of construction or any other period during the
Term, brokerage commissions, if any, length of the Lease term, size and location of the Premises being leased, building standard work letter and/or tenant improvement allowance, if any, and other generally applicable terms and conditions of tenancy
for comparable buildings as evidenced where possible by recently consummated lease transactions. Within thirty (30) days after delivery to Lessee of the Extension Amendment, Lessee shall execute and return to Lessor all counterparts of same. Lessor
shall execute same and deliver to Lessee one (1) fully-executed counterpart original.



3



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67.2 Objection to Lessors Determination of Fair market Rental Rate. If
Lessee objects to Lessors determination of the Fair Market Rental Rate, Lessee shall also notify Lessor in writing, at the same time as it delivers to Lessor the executed Extension Amendment. In the event that Lessor and Lessee are unable to
agree upon the Fair Market Rental Rate for the Premises, then the Fair Market Rental Rate shall be determined by appraisal in the manner provided below. Until the determination of the appraisal is final, Lessee and Lessor shall abide by the
provisions of the Extension Amendment. After the determination of the appraisers is final, Lessor shall within thirty (30) days reimburse Lessee for any overpayment by Lessee of Base Rent owing for prior months, and Lessee shall within thirty (30)
days make payment to Lessor for any underpayment of Base Rent owing for prior months. In no event shall the Fair Market Rental Rate be less than the Base Rent paid by Lessee in the final month of the Original Term of the Lease.



67.3 Appraisal. In the event Lessor and Lessee are
unable to agree upon the then Fair Market Rental Rate of the Premises sixty (60) days prior to the effective date of the extended term, then the Fair Market Rental Rate shall be determined in accordance with the following: The Premises shall be
appraised by an M.A.I. Appraiser chosen by Lessor (First Appraiser). If the appraisal determined by the First Appraiser is deemed unacceptable by Lessee, then Lessee shall so advise Lessor in writing within ten (10) working days after
receipt of the appraisal by the First Appraiser, and Lessee shall have the right to engage an M.A.I. Appraiser (Second Appraiser) to appraise the Premises. In the event Lessor shall deem the appraisal by the Second Appraiser to be
unacceptable, then Lessor shall advise Lessee within ten (10) working days after receipt of the appraisal by the Second Appraiser, and the First Appraiser and Second Appraiser shall together choose an M.A.I. Appraiser (Third Appraiser).
The cost of the Second Appraiser and one-half of the cost of the Third Appraiser shall be borne by Lessee. If the appraisal determined by the Third Appraiser is greater than the highest appraisal or lower than the lowest appraisal given by the First
Appraiser and Second Appraiser, then the appraisal shall be the average of the first two (2) appraisals. If the appraisal determined by the Third Appraiser is not greater than the highest appraisal nor lower than the lowest appraisal determined by
the First Appraiser and Second Appraiser, then the appraisal shall be the sum of the appraisals of the First Appraiser, Second Appraiser and Third Appraiser, divided by three (3). The appraisal process shall commence not later than forty-five (45)
days prior to the effective date of the option term and be concluded within thirty (30) days after the start of such forty-five (45) day period.



 SIGNATURES BEGIN ON NEXT PAGE 



4



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IN WITNESS WHEREOF, the parties have executed this Addendum as of the day and year of execution of the
Lease.



LessorKlein Investments, Family Limited PartnershipBy:

/s/ William A. KleinName:

William A. KleinIts:

General PartnerBy:

/s/ Carolyn KleinName:

Carolyn KleinIts:

General Partner




LesseeQuantum Fuel System Technologies Worldwide, Inc.,a Delaware corporationBy:

/s/ W. Brian OlsonName:

W. Brian OlsonIts:

CFOBy:Name:Its:




5



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EXHIBIT A



LEGAL DESCRIPTION



PARCEL A:



Parcel 1 in the City of Irvine, as shown on a map filed in Book 71 page 2 of Parcel Maps, records of said Orange County, California.



EXCEPTING any and all oil, oil rights, minerals, mineral rights, natural gas, natural gas
rights, and other hydrocarbons by whatsoever name known, that may be within or under the Parcel of land hereinabove described together with the perpetual right of drilling, mining, exploring and operating therefor and storing in and removing the
same from said land or any other land, including the right to whipstock or directionally drill and mine from lands other than those hereinabove described, oil or gas wells, tunnels and shafts into, through or across the subsurface of the land
hereinabove described, and to bottom such whipstocked or directionally drilled wells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and operate any such wells or
mines without, however, the right to drill, mine, store, explore and operate through the surface or the upper 500 feet of the subsurface of the land hereinabove described, as reserved in the deed recorded July 8, 1980 in book 13657 page 1998,
Official Records.



PARCEL B:



Parcel 2 as shown on a map filed in book 83 pages 32 and 33 of Parcel Maps, records of said
Orange County, California.



EXCEPTING all oil, oil rights, minerals, mineral
rights, natural gas, natural gas rights, and other hydrocarbons by whatsoever name known, geothermal steam, and all products derived from any of the foregoing, that may be within or under the Parcel of land hereinabove described together with the
perpetual right of drilling, mining, exploring and operating therefor and storing in and removing the same from said land or any other land, including the right to whipstock or directionally drill and mine from lands other than those hereinabove
described, oil or gas wells, tunnels and shafts into, through or across the subsurface of the land hereinabove described, and to bottom such whipstocked or directionally drilled wells, tunnels and shafts under and beneath or beyond the exterior
limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and operate any such wells or mines without, however, the right to drill, mine, store, explore and operate through the surface or the upper 500 feet of the subsurface of the
land hereinabove described, as reserved in the deed recorded August 12, 1976 in book 11847 page 1868, Official Records.