Standard Office Lease dated December 18,2001



 Exhibit 10.8 
  
 STANDARD OFFICE LEASE – MODIFIED GROSS 
  
 1. Basic Lease Provision (“Basic Lease Provisions”) 
  
 1.1 Parties: This lease, dated, for reference purposes only, December, 18 2001, Is made by and between Timm Properties II, a
California limited partnership, (herein called “Lessor”) and CallWave, Inc., doing business under the name of CallWave, Inc. 
  
 1.2 Premises: Suite A, on the first floor, consisting of approximately 5,000 square feet, more or less, as defined in paragraph 2 and as shown on Exhibit
“A” hereto (the “Premises”). 
  
 1.3 Building:
Commonly described as being located at 136 West Canon Perdido Street, in the City of Santa Barbara, County of Santa Barbara, State of California. 
  
 1.4 Use: General Office use, subject to paragraph 6. 
  
 1.5 Term: Forty one (41) months commencing March 1, 2002 (“Commencement Date”) and ending July 31, 2005 as defined in paragraph 3. 
  
 1.6 Options: None 
  
 1.7 Base Rent: $12,250 per month, payable on the 1st day of each month, per paragraph 4.1. 
  
 1.8 Base Rent Increase: On the first day of the 6th, 18th, and the
30th months, the monthly Base Rent payable under paragraph 1.7 above shall be adjusted as provided in paragraph 4.3
below. 
  
 1.9 Rent Paid Upon Execution: The first month of rent in the
amount of $12,250 is due March 1, 2002. 
  
 1.10 Security Deposit: $12,250
is due upon Lease execution as a security deposit. 
  
 2. Premises, Parking and
Common Areas. 
  
 2.1 Premises: The premises are a portion of a
building, herein sometimes referred to as the “Building” identified in paragraph 1.3 of the Basic Lease Provisions. “Building” shall include adjacent parking structures used in connection therewith. The Premises, the Building,
the Common Areas, the land upon which the same are located, along with all other buildings and improvements thereon or thereunder, are herein collectively referred to as the “Office Building Project.” Lessor hereby leases to Lessee and
Lessee leases from Lessor for the term, at the rental, and upon all of the conditions set forth herein, the real property referred to in the Basic Lease Provisions, paragraph 1, 2, as the “Premises, Including rights to the Common Areas as
hereinafter specified. 
  
 2.2 Vehicle Parking: So long as Lessee is not in
default, and subject to the rules and regulations attached hereto, and as established by Lessor from time to time, Lessee shall be entitled to the use of fifteen (15) parking spaces in the Office Building Project, identified on Exhibit C, at the
monthly rate applicable from time to time for monthly parking as set by Lessor and/or its licensee. In addition Lessee shall be entitled to the use of two parking spaces off-site. 
  
 2.2.1. If Lessee commits, permits or allows any of the prohibited activities described in the Lease or the rules then in effect, then Lessor
shall have the right, without notice, in addition to such other right and remedies that it may have, to remove or tow away the vehicle involved and charge the cost to Lessee, which cost shall be immediately payable upon demand by Lessor. 

 

			
		
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 2.2.2. The monthly parking rate per parking space will be $ 0 per month at the commencement of the term of this Lease,
and is not subject to change upon five (5) days prior written notice to Lessee. Monthly parking fees shall be payable one month in advance prior to the first day of each calendar month. 
  
 2.3 Common Areas – Definition. The term “Common Areas” is defined as all areas and facilities outside the Premises and
within the exterior boundary line of the Office Building Project that are provided and designated by the Lessor from time to time for the general non-exclusive use of Lessor, Lessee and of other lessees of the Office Building Project and their
respective employees, suppliers, shippers, customers and invites, including but not limited to common entrances, lobbies, corridors, stairways and stairwells, public restrooms, elevators, escalators, parking areas to the extent not otherwise
prohibited by this Lease, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways, ramps, driveways, landscaped areas and decorative walls. 
  
 2.4. Common Areas – Rules and Regulations. Lessee agrees to abide by and conform to the rules and regulations attached hereto as
Exhibit B with respect to the Office Building Project and Common Areas, and to cause its employees, suppliers, shippers, customers, and invites to so abide and conform. Lessor or such other person(s) as Lessor may appoint shall have the exclusive
control and management of the Common Areas and shall have the right, from time to time, to modify, amend and enforce said rules and regulations. Lessor shall not be responsible to Lessee for the noncompliance with said rules and regulations by other
lessees, their agents, employees and invitees of the Office Building Project. 
  
 2.5. Common Areas – Changes. Lessor shall have the right, in Lessor’s sole discretion, from time to time: 
  
 (a) To make changes to the Building interior and exterior and Common Areas, including, without limitations, changes in the location, size, shape, number and appearance
thereof, including but not limited to the lobbies, windows, stairways, air shafts, elevators, escalators, restroom, driveways, entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, decorative
walls, landscaped areas and walkways,: provided, however, Lessor shall at all times provide the parking facilities required by applicable law; 
  
 (b) To close temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the Premises remains available; 
  
 (c) To designate other land and improvements outside the boundaries of the Office Building
Project to be a part of the Common Areas, provided that such other land and improvements have a reasonable and functional relationship to the Office Building Project; 
  
 (d) To add additional buildings and improvements to the Common Areas; 
  
 (e) To use the Common Areas while engaged in making additional improvements, repairs or alternations to the Office Building Project, or any
portion thereof; 
  
 (f) To do and perform such other acts and make such other
changes in, to or with respect to the Common Areas and Office Building Project as Lessor may, in the exercise of sound business judgment deem to be appropriate. 
  

3. Term. 
  
 3.1 Term. The term and Commencement Date of this Lease shall be as specified in paragraph 1.5 of the Basic Lease Provisions. 
  
 3.2 Delay in Possession. Notwithstanding said Commencement Date, if for any reason Lessor cannot deliver possession of the Premises
to Lessee on said date and subject to paragraph 3.2.2. Lessor shall not be subject to any liability therefor nor shall such failure affect the validity of this Lease or the obligations of Lessee hereunder or extend the term hereof; but, in such
case, Lessee shall not be obligated to pay rent or perform any other obligation of Lessee under the terms of this Lease, except as may be otherwise provided in this Lease, until possession of the Premises is tendered to Lessee, as hereinafter
defined; provided, however, that if Lessor shall not have delivered possession of the Premises within sixty (60) days following said Commencement Date, as the same may be extended under the terms of a Work Letter executed by Lessor and Lessee,
Lessee may, at Lessee’s option, by notice in writing to Lessor within ten (10) days 
  

			
		
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 thereafter, cancel this Lease, in which event the parties Shall be discharged from all obligations hereunder; provided,
however, that, as to Lessee’s obligations, Lessee first reimburses Lessor for all costs incurred for Non-Standard Improvements and, as to Lessor’s obligations, Lessor shall return any money previously deposited by Lessee (less any offsets
due Lessor for Non-Standard Improvements); and provided further, that if such written notice be Lessee is not received by Lessor within said ten (10) day period, Lessee’s right to cancel this Lease hereunder shall terminate and be of no further
force or effect. 
  
 3.2.1. Possession Tendered – Defined. Possession of the
Premises shall be deemed tendered to Lessee (“Tender of Possession”) when (1) the improvements to be provided by Lessor under this Lease are substantially completed, (2) the Building utilities are ready for use in the Premises, (3) Lessee
has reasonable access to the Premises, and (4) ten (10) days shall have expired following advance written notice to Lessee of the occurrence of the matters described in (1), (2) and (3), above of this paragraph 3.2.1. 3.2.2. Delays Caused by Lessee.
There shall be no abatement of rent, and the sixty (60) day period following the Commencement Date before which Lessee’s right to cancel this Lease accrues under paragraph 3.2, shall be deemed extended to the extent of any delays caused by acts
or omissions of Lessee, Lessee’s agents, employees and contractors. 
  
 3.3
Early Possession. If Lessee occupies the Premises prior to said Commencement Date, such occupancy shall be subject to all provisions of this Lease, such occupancy shall not change the termination date, and Lessee shall pay rent for such
occupancy. 
  
 3.4 Uncertain Commencement. In the event commencement of the
Lease term is defined as the completion of the improvements, Lessee and Lessor shall execute and amendment to this Lease establishing the date of Tender of Possession (as defined in paragraph 3.2.1) or the actual taking of possession by Lessee,
whichever first occurs, as the Commencement Date. 
  
 4. Rent 

 
 4.1 Base Rent. Subject to adjustment as hereinafter provided in paragraph 4.3 and
except as may be otherwise expressly provided in this Lease, Lessee shall pay to Lessor the Base Rent for the Premises set forth in paragraph 1.7 of the Basic Lease Provisions, without offset or deduction. Lessee shall pay Lessor upon execution
hereof the advance Base Rent described in paragraph 1.9 of the Basic Lease Provisions. Rent for any period during the term hereof which is for less than one month shall be prorated based upon the actual number of days of the calendar month involved.
Rent shall be payable in lawful money of the United States to Lessor at the address stated herein or to such other persons or at such other places Lessor may designate in writing. 
  
 4.2 Rent Increase 
  
 4.2.1 At the times set forth in paragraph 1.8 of the Basic Lease Provisions, the monthly Base Rent payable under paragraph 4.1 of this Lease shall be adjusted by the
increase, if any, in the Consumer Price Index of the Bureau of Labor Statistics of the Department of Labor for All Urban Consumers, (1982-84) “All Items,” for the city nearest the location of the Building, herein referred to as
“C.P.I., since the date of this Lease. 
  
 4.2.2 The monthly Base Rent
payable pursuant to paragraph 4.2.1. shall be calculated as follows: the Base Rent payable for the first month of the term of this Lease, as set forth in paragraph 4.1 of this Lease, shall be multiplied by a fraction the numerator of which shall be
the C.P.I. of the calendar month during which the adjustment is to take effect, and the denominator of which shall be the C.P.I. for the calendar month in which the original Lease term commences. The sum so calculated shall constitute the new
monthly Base Rent hereunder, but, in no event, shall such new monthly Base Rent be less than the Base Rent payable for the month immediately preceding the date for the rent adjustment. 
  
 4.2.3 In the event the compilation and/or publication of the C.P.I. shall be transferred to any other governmental department or bureau or
agency or shall be discontinued, than the index most nearly the same as the C.P.I. shall be used to make such calculations. In the event that Lessor and Lessee cannot agree on such alternative index, then the matter shall be submitted for decision
to the American Arbitration 
  

			
		
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 Association in the County in which the Premises are located, in accordance with the then rules of said association and
the decision of the arbitrators shall be binding upon the parties notwithstanding one party failing to appear after due notice of the proceeding. The cost of said Arbitrators shall be paid equally by Lessor and Lessee. 
  
 4.2.4 Lessee shall continue to pay the rent at the rate previously in effect until the
increase, if any, is determined. Within five (5) days following the date on which the increase is determined. Lessee shall make such payment to Lessor as will bring the increased rental current, commencing with the effective date of such increase
through the date of any rental installments then due. Thereafter the rental shall be paid at the increased rate. 
  
 4.2.5 At such time as the amount of any change in rental required by this Lease is known or determined, Lessor and Lessee shall execute an amendment to this Lease setting
forth such change. 
  
 5. Security Deposit. Lessee shall deposit
with Lessor upon execution hereof the security deposit set forth in paragraph 1.10 of the Basic Lease Provisions as a security for Lessee’s faithful performance of Lessee’s obligations hereunder. If Lessee fails to pay rent or other
charges due hereunder, or other wise defaults with respect to any provision of the Lease, Lessor may use, apply or retain all or any portion of said deposit for the payment of any rent or other charge in default for the payment of any other sum to
which Lessor may become obligated by reason of Lessee’s default, or to compensate Lessor for any loss or damage which Lessor may suffer thereby. If Lessor so uses or applies all or any portion of said deposit, Lessee shall within ten (10) days
after written demand therefor deposit cash with Lessor in an amount sufficient to restore said deposit to the full amount then required of Lessee. If the monthly Base Rent shall, from time to time, increase during the term of their Lease, Lessee
shall, at the time of such increase, deposit with Lessor additional money as a security deposit so that the total amount of the security deposit held by Lessor shall at all times bear the same proportion to the then current Base Rent as the initial
security bears to the initial Base Rent set forth in paragraph 1.7 of the Basic Lease Provisions. Lessor shall not be required to keep said security deposit separate from its general accounts. If Lessee performs all of Lessee’s obligations
hereunder, said deposit, or so much thereof as has not heretofore been applied b Lessor, shall be returned, without payment of interest or other increment for its use, to Lessee (or, at Lessor’s option, to the last assignee, if any, of
Lessee’s interest hereunder) at the expiration of the term hereto, and after Lessee has vacated the Premises. No relationship is created herein between Lessor and Lessee with respect to said Security Deposit. 
  
 6. Use. 
  
 6.1 Use. The premises shall be used and occupied only for the purpose set forth in paragraph 1.4 of the Basic Lease Provisions or any
other use which is reasonably comparable to that use and for no other purpose. 
  
 6.2 Compliance with Law. 
  
 (a) Lessor warrants to Lessee that
the Premises, in the state existing on the date that the Lease term commences, but without regard to alterations or improvements made by Lessee or the use for which Lessee will occupy the Premises, does not violate any covenants or restrictions of
record, or any applicable building code, regulation or ordinance in effect on such Lease term Commencement Date. In the event it is determined that this warranty has been violated, then it shall be the obligation of the Lessor, after written notice
from Lessee, to promptly, at Lessor’s sole cost and expenses, rectify any such violation. 
  
 (b) Except as provided in paragraph 6.2 (a) Lessee shall, at Lessee’s expense, promptly comply with all applicable statutes, ordinances, rules, regulations, orders, covenants and restrictions of record, and
requirements of any fire insurance underwriters or rating bureaus, now in effect or which may hereafter come into effect, whether or not they reflect a change in policy from that now existing, during the term or any part of the term hereof, relating
in any manner to the Premises and the occupation and use by Lessee of Premises. Lessee shall conduct its business in a lawful manner and shall not use or permit the use of the Premises or the Common Areas in any manner that will tend to create waste
or a nuisance or shall tend to disturb other occupants of the Office Building Project. 
  

			
		
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 6.3 Condition of Premises. 
  
 (a) Lessor shall deliver the Premises to Lessee in a clean condition on the Lease Commencement Date (unless Lessee is already in possession)
and Lessor warrants to Lessee that the plumbing, lighting, air conditioning, and heating system in the Premises shall be in good operating condition. In the event that it is determined that this warranty has been violated, then it shall be the
obligation of Lessor, after receipt of written notice from Lessee setting forth with specificity the nature of the violation, to promptly, at Lessors’s sole cost, rectify such violation. 
  
 (b) Except as otherwise provided in this Lease, Lessee hereby accepts the Premises and the
Office Building Project in their condition existing as of the Lease Commencement Date or the date that Lessee takes possession of the Premises, whichever is earlier, subject to all applicable zoning, municipal, county and state laws, ordinance and
regulations governing and regulating the use of the Premises, and any easements, covenants or restrictions of record, and accepts this Lease subject thereto and to all matters disclosed thereby and by exhibits attached hereto. Lessee acknowledges
that it has satisfied itself by its own independent investigation that the Premises are suitable for its intended use, and that neither Lessor nor Lessor’s agent or agents has made any representation or warranty as to the present or future
suitability of the Premises, Common Areas, or Office Building Project for the conduct of Lessee’s business. 
  
 7. Maintenance, Repairs, Alterations and Common Area Services. 
  
 7.1 Lessor’s Obligations. Lessor shall keep the Office Building Project, including the Premises, interior and exterior walls, roof, and common areas, and the
equipment whether used exclusively for the Premises or in common with other premises, in good condition and repair: provided, however, Lessor shall not be obligate to paint, repair or replace wall coverings or to repair or replace any improvements
that are not ordinarily a part of the Building or are above then Building standards. Except as provided in paragraph 9.5, there shall be no abatement of rent or liability of Lessee on account of any injury or interference with Lessee’s business
with respect to any improvements, alterations or repair made be Lessor to the Office Building Project or any part thereof. Lessee expressly waives the benefits of any statute now or hereafter in effect which would otherwise afford Lessee the right
to make repairs at Lessor’s expense or to terminate this Lease because of Lessor’s failure to keep the Premises in good order, condition and repair. 
  

7.2 Lessee’s Obligations. 
  
 (a) Notwithstanding Lessor’s obligation to keep the Premises in good condition and repair, Lessee shall be responsible for payment of the cost thereof to Lessor as
additional rent for that portion of any maintenance and repair of the Premises, or any equipment (wherever located) that serves only Lessee or the Premises, to the extent such cost is attributable to causes beyond normal wear and tear. Lessee shall
be responsible for the cost of painting, repairing or replacing wall coverings, and to repair or replace any Premises improvements that are not ordinarily a part of the Building or that are above then Building standards. Lessor may, at its option,
upon reasonable notice, elect to have Lessee perform any particular such maintenance or repairs the cost of which is otherwise Lessee’s responsibility hereunder. 
  
 (b) On the last day of the term hereof, or on any sooner termination, Lessee shall surrender the Premises to Lessor in the same condition as
received, ordinary wear and tear excepted, clean and free of debris. Any damage or deterioration of the Premises shall not be deemed ordinary wear and tear if the same could have been prevented by good maintenance practices by Lessee. Lessee shall
repair any damage to the Premises occasioned by the installation or removal of Lessee’s trade fixtures, alterations, furnishings and equipment. Except as otherwise stated in this Lease, Lessee shall leave the air lines, power panels, electrical
distribution systems, lighting fixtures, air conditioning, window coverings, wall coverings, carpets, wall paneling, ceilings and plumbing on the Premises and in good operating condition. 
  
 7.3 Alterations and additions. 
  
 (a) Lessee shall not, without Lessor’s prior written consent make any alterations, improvements, additions, Utility installations or repairs in, on or about the
Premises, or the Office Building Project. As used in this paragraph 7.3 the term “Utility Installation” shall mean carpeting, window and wall coverings, power panels, electrical distribution systems, lighting fixtures, air conditioning,
plumbing, and telephone and telecommunications wiring and equipment. At the expiration of the term, Lessor may require the removal of any or all of said alterations, improvements, additions or Utility Installations, and the restoration of the

  

			
		
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 Premises and the Office Building Project to their prior condition, at Lessee’s expense. Should Lessor permit Lessee
to make its own alterations, improvements, additions or Utility Installations, lessee shall use only such contractors as has been expressly approved by Lessor and Lessor may require Lessee to provide Lessor, at Lessee’s sole cost and expense, a
lien and completion bond in and amount equal to one and one-half times the estimated cost of such improvements, to insure Lessor against any liability for mechanic’s and materilamen’s liens and to insure completion of the work. Should
Lessee make any alterations, improvements, additions or Utility Installations without the prior approval of Lessor, or use a contractor not expressly approved by Lessor, Lessor may, at any time during the term of this Lease, require that Lessee
remove any part or all of the same. 
  
 (b) Any alterations, improvements,
additions or Utility Installations in or about the Premises or the Office Building Project that Lessee shall desire to make shall be presented to Lessor in written form, with proposed detailed plans. If Lessor shall give its consent to Lessee’
making such alteration, improvement, addition or Utility Installation, the consent shall be deemed conditioned upon Lessee acquiring a permit to do so from the applicable government agencies, furnishing a copy thereof to Lessor prior to the
commencement of the work, and compliance by Lessee with all conditions of said permit in a prompt and expeditious manner. 
  
 (c) 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 in the Premises, which claims
are or may be secured by any mechanic’s or materialman’s lien against the Premises, the Building or the Office Building Project, or any interest therein. 
  
 (d) Lessee shall give Lessor not less than ten (10) days’ notice prior to the commencement of any work in the Premises by Lessee, and
Lessor shall have the right to post notices of non-responsibility in or on the Premises or the Building as provides by law. If Lessee shall, in good faith, contest the validity of any such lien, claim, or demand, the Lessee shall, at its sole
expense defend itself and Lessor against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof against the Lessor or the Premises, the Building or the Office Building Project, upon
the condition that if Lessor shall require, Lessee shall furnish to Lessor a surety bond satisfactory to Lessor in an amount equal to such contested lien, claim or demand indemnifying Lessor against liability for the same and holding the Premises,
the Building and the Office Building Project fee from the effect of such lien or claim. In addition, Lessor may require Lessee to pay Lessor’s reasonable attorneys’ fees and costs in participating in such action if Lessor shall decide it
is to Lessor’s vest interest to do so. 
  
 (e) All alterations, improvements,
additions and Utility Installations (whether or not such Utility Installments constitute trade fixtures of Lessee), which may be made to the Premised by Lessee, including but not limited to, floor coverings, paneling, doors, drapes, built-ins,
moldings, sound attenuation, and lighting and telephone or communication systems, conduit, wiring and outlets, shall be made and done in a good and workmanlike manner and go good and sufficient quality and materials and shall be the property of
Lessor and remain upon and be surrendered with the Premises at the expiration of the Lease term, unless Lessor requires their removal pursuant to paragraph 7.3 (a). Provided Lessee is not in default, notwithstanding the provisions of this paragraph
7.3 (e), Lessee’s personal property and equipment, other than that which is affixed to the Premises to that it cannot be removed without material damage to the Premises or the Building, and other than Utility Installations, shall remain the
property of Lessee and may be removed by Lessee subject to the provisions of paragraph 7.2. 
  
 (f) Lessee shall provide Lessor with as-built plans and specifications for any alterations, improvements, additions or Utility installations. 
  
 7.4 Utility Additions. Lessor reserves the right to install new or additional utility facilities throughout the Office Building
Project for the benefit of Lessor or Lessee, or any other lessee of the Office Building Project, including, but not by way of limitation, such utilities as plumbing, electrical systems, communications systems, and fire protection and detection
systems, so long as such installations do not unreasonably interfere with Lessee’s use of the Premise. 
  
 8. Insurance; Indemnity. 
  
 8.1.
Liability Insurance – Lessee. Lessee shall, at Lessee’s expense, obtain and keep in force during the term of this Lease a policy of Comprehensive General Liability insurance utilizing an insurance Services 
  

			
		
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 Office standard form with Broad Form General Liability Endorsement (GL0404), or equivalent, in an amount of not less than
$1,000,000.00 per occurrence of bodily injury and property damage combined or in a greater amount as reasonably determined by Lesser and shall insure Lessee with Lessor as an additional insured against liability arising out of the use, occupancy or
maintenance of the Premises. Compliance with the above requirement shall not, however, limit the liability of Lessee hereunder. 
  
 8.2 Liability Insurance – Lessor. Lessor shall obtain and keep in force during the term of this Lease a policy of Combined Single Limit Bodily Injury and
Broad Form Property Damage Insurance, plus coverage against such other risks Lessor deems advisable from time to time, insuring Lessor, but not Lessee, against liability arising out of the ownership, use, occupancy or maintenance of the Office
Building Project in an amount not less than 2,500,000.00 per occurrence. 
  
 8.3
Property Insurance – Lessee. Lessee shall, at Lessee’s expense, obtain and keep in force during the term of this Lease for the benefit of Lessee, replacement cost fire and extended coverage insurance, with vandalism and malicious
mischief, sprinkler leakage and earthquake sprinkler leakage endorsements, in a an amount sufficient to cover not less than 100% of the full replacement cost, as the same may exist from time to time, of all of Lessee’s personal property,
fixtures, equipment and tenant improvements. 
  
 8.4 Property Insurance –
Lessor. Lessor shall obtain and keep in force during the term of this Lease a policy or policies of insurance covering loss or damage to the office Building Project improvements, but not Lessee’s personal property, fixtures, equipment or
tenant improvements, in the amount of the full replacement cost thereof, as the same may exist from time to time, utilizing insurance Services Office standard form, or equivalent, providing protection against all perils included within the
classification of fire, extended coverage, vandalism, malicious mischief, plate glass, and such other perils as Lessor deems advisable or may be required by a lender having a lien on the Office Building Project. Lessee will not be named in any such
policies carried by Lessor and shall have no right to any proceeds therefrom. The policies required by these paragraphs 8.2 and 8.4 shall contain such deductibles as Lessor or the aforesaid lender may determine. Lessee shall not do or permit to be
done anything which shall invalidate the insurance policies carried by Lessor. Lessee shall pay the entirety of any increase in the property insurance premium for the Office Building Project over what it was immediately prior to the commencement of
the term of this Lease if the increase is specified by Lessor’s insurance carrier as being caused by the nature of Lessee’s occupancy or any act or omission of Lessee. 
  
 8.5 Insurance Policies. Lessee shall deliver to Lessor copies of liability insurance policies required under paragraph 8.1 or
certificates evidencing the existence and amounts of such insurance within seven (7) days after the Commencement Date of this Lease. No such policy shall be cancelable or subject to reduction of coverage or other 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 renewals thereof. 
  
 8.6 Waiver of Subrogation. Lessee and Lessor each hereby release and relieve the other, and waive their entire right of recovery
against the other, for direct or consequential loss or damage arising out of or incident to the perils covered by property insurance carried by such party, whether due to the negligence of Lessor or Lessee or their agents, employees, contractors
and/or invitees. If necessary all property insurance required under this Lease shall be endorsed to so provide. 
  
 8.7 Indemnity. Lessee shall indemnify and hold harmless Lessor and its agents, Lessor’s master or ground lessor, partners and lenders, from and against any
and all claims for damage to the person or property of anyone or any entity arising from Lessee’s use of the Office Building Project, or from the conduct of Lessee’s business or from any activity, work or things done, permitted or suffered
by Lessee in or about the Premises or elsewhere and shall further indemnity and hold harmless Lessor from and against any and all claims, costs and expenses arising from any breach or default in the performance of any obligation on Lessee’s
part to be performed under the terms of this Lease, or arising from any act or omission of Lessee, or any of Lessee’s agents, contractors, employees, or invitees, and from and against all costs, attorney’s fees, expenses and liabilities
incurred by Lessor as the result of any such use, conduct, activity, work, things done, permitted or suffered, breach, default or negligence, and in dealing reasonably 
  

			
		
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 therewith, including but not limited to the defense or pursuit of any claim or any action or proceeding involved therein;
and in case any action or proceeding be brought against Lessor by reason of any such matter, Lessee upon notice from Lessor shall 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 so indemnified. Lessee as a material part of the consideration to Lessor, hereby assumes all risk of damage to property of Lessee or injury to persons, in, upon or
about the Office Building Project arising from any cause Lessee hereby waives all claims in respect thereof against Lessor. 
  
 8.8 Exemption of Lessor from Liability. Lessee hereby agrees that Lessor shall not be liable for injury to Lessee’s business or any loss of income therefrom
or for loss of or damage to the goods, wares, merchandise or other property of Lessee, Lessee’s employees, invitees, customers, or any other person in or about the Premises or the Office Building Project, nor shall Lessor be liable for injury
to the person of Lessee, Lessee’s employees, agents or contractors, whether such damage or injury is caused by or results from theft, fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of
pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether said damage or injury results from conditions arising upon the Premises or upon other portions of the Office Building Project, or
from other sources or places, or from new construction or the repair, alteration or improvement of any part of the Office Building Project, or of the equipment, fixtures or appurtenances applicable thereto, and regardless of whether the cause of
such damage or injury or the means of repairing the same is inaccessible, Lessor shall not be liable for any damages arising from any act or neglect of any other lessee, occupant or user of the Office Building Project, nor from the failure of Lessor
to enforce the provisions of any other lease of any other lessee of the Office Building Project. 
  
 8.9 No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of insurance specified in this paragraph 8 are adequate to cover Lessee’s property or
obligations under this Lease. 
  
 9. Damage or Destruction. 
  
 9.1 Definitions. 
  

	(a)	 	“Premises Damage” shall mean if the Premises are damaged or destroyed to any extent. 

  

	(b)	 	“Premises Building Partial Damage” shall mean if the Building of which Premises are a part is damaged or destroyed to the extent that the cost to repair is less that fifty
percent (50%) of the then Replacement Cost of the building. 

  

	(c)	 	“Premises Building Total Destruction” shall mean if the Building of which the Premises are a part is damaged or destroyed to the extent that the cost to repair is fifty
percent (50%) or more of the then Replacement Cost of the Building. 

  

	(d)	 	“Office Building Project Buildings” shall mean all of the buildings on the Office Building Project site. 

  

	(e)	 	“Office Building Project Buildings Total Destruction” shall mean if the Office Building Project Buildings are damaged or destroyed to the extent that the cost of repair is
fifty percent (50%) or more of the then Replacement Cost of the Office Building Project Buildings. 

  

	(f)	 	“Insured Loss” shall mean damage or destruction which was caused by an event required to be covered by the insurance described in paragraph 8. The fact that an insured
Loss has a deductible amount shall not make the loss an uninsured loss. 

  

	(g)	 	“Replacement Cost” shall mean the amount of money necessary to be spent in order to repair or rebuild the damage area to the condition that existed immediately prior to
the damage occurring, excluding all improvements made by lessees, other than those installed by Lessor at Lessee’s expense. 

  
 9.2 Premises Damage; Premises Building Partial Damage. 
  
 (a) Insured Loss: Subject to provisions of paragraph 9.4 and 9.5, if at any time during the term of this Lease there is damage which is an insured Loss and which falls
into the classification of either Premises Damage or Premises Building Partial Damage, then Lessor shall, as soon as reasonably possible and to the extent the required materials and labor are readily available through usual commercial channels at
Lessor’s expense, repair such damage) but not Lessee’s fixtures, equipment or tenant improvements originally paid for by Lessee) to its condition existing at the time of the damage, and this Lease shall continue in full force and effect.

  

			
		
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 (b) Uninsured Loss: Subject to the provisions of paragraphs 9.4 and 9.5, if at any time during the term of this Lease
there is damage which is not an insured loss and which falls within the classification of Premises Damage or Premises Building Partial Damage, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at
Lessee’s expense), which damage prevents Lessee from making any substantial use of the Premises, Lessor may at Lessor’s option 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) give written notice to Lessee within thirty (30) days after the date of the occurrence of such damage of Lessor’s intention to cancel and terminate this Lease as of the date of the occurrence of
such damage, in which event this Lease shall terminate as of the date of the occurrence of such damage. 
  
 9.3 Premises Building Total Destruction; Office Building Project Total Destruction. Subject to the provisions of paragraph 9.4 and 9.5, if at any time during the term of this Lease there is damage,
whether or not it is an insured loss, which falls into the classifications of either (I) Premises Building Total Destruction, or (II) Office Building Project Total Destruction, then Lessor may at Lessor’s option wither (I) repair such damage or
destruction as soon as reasonably possible at Lessor’s expense (to the extent the required materials are readily available through usual commercial channels) to its condition existing at the time of the damage, but not Lessee’s fixtures,
equipment or tenant improvements, and this Lease shall continue in full force and effect, or (II) give written notice to Lessee within thirty (30) days after the date of occurrence of such damage of Lessor’s intention to cancel and terminate
this Lease, in which case this Lease shall terminate as of the date of the occurrence of such damage. 
  
 9.4 Damage Near End of Term. 
  
 (a)
Subject to paragraph 9.4(b), if at any time during the last twelve (12) months of the term of this Lease there is substantial damage to the Premises, Lessor may at Lessor’s option cancel and terminate this Lease as of the date of occurrence of
such damage by giving written notice to Lessee of Lessor’s election to do so within 30 days after the date of occurrence of such damage. 
  
 (b) Notwithstanding paragraph 9.4(a), in the event that Lessee has an option to extend or renew this Lease, and the time within which said option may be exercised has not
yet expired, Lessee shall exercise such option, if it is to be exercised at all, no later than twenty (20) days after the occurrence of an insured Loss falling within the classification of Premises Damage during the last twelve (12) months of the
term of this Lease. If Lessee duly exercises such option during aid twenty (20) day period, Lessor shall, at Lessor’s expense, repair such damage, but not Lessee’s fixtures, equipment or tenant improvements, as soon as reasonably possible
and this Lease shall continue in full force and effect. If Lessee fails to exercise such option during said twenty (20) day period, then Lessor may at Lessor’s option terminate and cancel this Lease as of said twenty (20) day period,
notwithstanding any term or provision in the grant of option to the contrary. 
  
 9.5 Abatement of Rent; Lessee’s Remedies. 
  
 (a) In the
event Lessor repairs or restores the Building or Premises pursuant to the provisions of this paragraph 9, and any part of the premises are not usable (including loss of use due to loss of access or essential services), the rent payable hereunder
(including Lessee’s Share of Operating Expense Increase) for the period during which such damage, repair or restoration continues shall be abated, provided (1) the damage was not the result of the negligence of Lessee, and (2) such abatement
shall only be to the extent the operation and profitability of Lessee’s business as operated from the Premises is adversely affected. Except for said abatement of rent, if any, Lessee shall have no claim against Lessor for any damage suffered
by reason of any such damage, destruction, repair or restoration. 
  
 (b) If
Lessor shall be obligated to repair or restore the Premises or the Building under the provisions of this paragraph 9 and shall not commence such repair or restoration within ninety (90) days after such occurrence, or if Lessor shall not complete the
restoration and repair within six (6) months after such occurrence, Lessee may at Lessee’s option cancel and terminate this Lease by giving Lessor written notice 
  

			
		
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 of Lessee’s election to do so at any time prior to the commencement or completion, respectively, of such repair or
restoration. In such event this Lease shall terminate as of the dare of such notice. 
  
 (c) Lessee agrees to cooperate with Lessor in connection with any such restoration and repair, including but not limited to the approval and/or execution of plans and specifications required. 
  
 9.6 Termination – Advance Payments. Upon termination of this Lease
pursuant to this paragraph 9, an equitable adjustment shall be made concerning advance rent and any advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee’s security deposit as has not
theretofore been applied by Lessor. 
  
 9.7 Waiver. Lessor and
Lessee waive the provisions of any statute which relate to termination of leases when leased property is destroyed and agree that such event shall be governed by the terms of this Lease. 
  
 10. Real Property Taxes. 
  
 10.1 Payment of Taxes. Lessor shall pay the real property tax, as defined in paragraph 10.3, applicable to the Office Building Project. 
  
 10.2 Definition of “Real Property Tax. As used herein, the term “real
property tax” shall include any form of real estate tax or assessment, general, special ordinary or extraordinary, and any license fee, commercial rental tax, improvement bond or bonds, levy or tax (other than inheritance, personal income or
estate taxes) imposed on the office Building Project or any portion thereof by any authority having the direct or indirect power to tax, including any city, county, state or federal government, or any school, agricultural, sanitary, fire, street,
drainage or other improvement district thereof, as against any legal or equitable interest of Lessor in the Office Building Project or any portion thereof, as against Lessor’s right to rent or other income therefrom, and as against
Lessor’s business of leasing the Office Building Project. The term “real property tax” shall also include any tax, fee, levy, assessment or charge (I) in substitution of partiality or totally, any tax, fee, levy, assessment or charge
hereinabove included within the definition or “real property tax” or (II) the nature of which was hereinbefore included within the definition of “real property tax” or (III) which is imposed for a service or right not charged
prior to June 1, 1978, or, if previously charged has been increased since June 1, 1978, or (IV) which is imposed as a result of a change in ownership, as defined by applicable local statutes for property tax purposes, of the Office Building Project
or which is added to a tax or charge hereinbefore included within the definition of real property tax by reason of such change of ownership, or (V) which is imposed by reason of this transaction, any modifications or changes hereto, or any transfers
hereof. 
  
 10.3 Joint Assessment. If the improvements or property,
the taxes for which are to be paid separately by Lessee under paragraph 10.5 are not separately assessed, Lessee’s portion of that tax shall be equitably determined by Lessor from the respective valuations assigned in the assessor’s work
sheets or such other information (which may include the cost of construction) as may be reasonably available. Lessor’s reasonable determined nation thereof, in good faith, shall be conclusive. 
  
 10.4 Personal Property Taxes. 
  
 (a) Lessee shall pay prior to delinquency all taxes assessed against and levied upon trade
fixtures, furnishings, equipment and all other personal property of Lessee contained in the Premises or elsewhere. 
  
 (b) If any of Lessee’s said personal property shall be assessed with Lessor’s real property, Lessee shall pay to Lessor the taxes attributable to Lessee within
ten (10) days after receipt of a written statement forth the taxes applicable to Lessee’s property. 
  
 11. Utilities. 
  
 11.1 Services
Provided by Lessor. Lessor shall provide heating, ventilation, air conditioning, and gas service as reasonably required, reasonable amounts of electricity or normal lighting and office machines, water for reasonable and normal drinking and
lavatory use. 
  

			
		
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 11.2 Services Exclusive to Lessee. Lessee shall pay for all power, telephone and other utilities and services
specially or exclusively supplied and/or metered exclusively to the Premises or to Lessee, together with any taxes thereon. 
  
 11.3 Charges for Certain Utilities. Lessor shall pay all charges for supplying all utilities and services to the Common Areas. Lessee shall pay its proportionate
share of all operating costs for the HVAC systems of the Building. Lessee’s proportionate share of such operating costs shall be the percentage that the square footage of the Premises bears to the total occupied square footage of leaseable
premises of the Building (exclusive of Common Areas) from time to time. Lessor shall pay all costs for operating, maintaining, repairing and insuring the HVAC systems for the Building, subject to reimbursement by Lessee as hereinabove provided.
Lessee shall pay to Lessor charges assessed pursuant to this provision within ten (10) days from receipt from Lessor. 
  
 11.4 Hours of Service. Said services and utilities shall be provided during generally accepted business days and hours or such other days or hours as may hereafter
be ser forth. Utilities and services required at other times shall be subject to advance request and reimbursement by Lessee to Lessor of the cost thereof. 
  
 11.5 Excess Usage by lessee. Lessee shall not make connection to the utilities except by or through existing outlets and shall not install or use machinery or
equipment in or about the Premises that uses excess water, lighting or power, or suffer or permit any act that causes extra burden upon the utilities or services, including but not limited to security services, over standard office usage for the
Office Building Project. Lessor shall require lessee to reimburse Lessor far any excess expenses or costs that may arise out of a breach of this subparagraph by Lessee. Lessor may, in its sole discretion, install at Lessee’s expense
supplemental equipment and/or separate meeting applicable to Lessee’s excess usage or loading. 
  
 11.6 Interruptions. There shall be no abatement of rent and Lessor shall not be liable in any respect whatsoever for the inadequacy, stoppage, interruptions or discontinuance of any utility or service due to
riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor’s reasonable control or in cooperation with governmental request or directions. 
  
 12. Assignment and Subletting. 
  
 12.1 Lessor’s Consent Required. Lessee shall not voluntarily or by operation of law assign, transfer, mortgage, sublet, or otherwise transfer or encumber all or any
part of Lessee’s interest in the Lease or in the Premises, without Lessor’s prior written consent, which Lessor shall not unreasonably withhold. Lessor shall respond to Lessee’s request for consent hereunder in a timely manner and any
attempted, assignment, transfer, mortgage, encumbrance or subletting without such consent shall be void, and shall constitute a material default and breach or this Lease without the need for notice to Lessee under paragraph 13.1.
“Transfer” within the meaning of this paragraph 12 shall include the transfer or transfers aggregating: (a) if Lessee is a corporation, more than twenty-five percent (25%) of the voting stock of such corporation, or (b) if Lessee is a
partnership, more than twenty-five percent (25%) of the profit and loss participation in such partnership. 
  
 12.2 Lessee Affiliate. Notwithstanding the provisions of paragraph 12.1 hereof, Lessee may assign or sublet the Premises, or any portion thereof without Lessor’s consent, to any corporation which controls, is
controlled by or is under common control with Lessee or to any corporation resulting from the merger or consolidation with Lessee, or to any person or entity which acquires all the assets of Lessee as a going concern of the business that is being
conducted on the Premises, all of which are referred to as “Lessee Affiliate”, provided that before such assignment shall be effective, (a) said assignee shall assume, in full, the obligation of Lessee under this lease and (b) Lessor shall
be given written notice of such assignment and assumption. Any such assignment shall not, in any way affect or limit the liability of Lessee under the terms of this Lease even if after such assignment or subletting the terms of this Lease are
materially changed or altered without the consent of Lessee, the consent of whom shall not be necessary. 
  

			
		
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 12.3 Terms and Conditions Applicable to Assignment and Subletting. 
  
 (a) Regardless of Lessor’s consent, no assignment or subletting shall release Lessee of
Lessor’s obligations hereunder of after the primary liability of Lessee to pay the rent and other sums due Lessor hereunder including Lessee’s Share of Operating Expense Increase, and to perform all other obligations to be performed by
Lessee hereunder. 
  
 (b) Lessor may accept rent from any person other than Lessee
pending approval or disapproval of such assignment. 
  
 (c) Neither a delay in the
approval or disapproval of such assignment or subletting, nor the acceptance of rent, shall constitute a waiver or estoppel of Lessor’s right to exercise its remedies for the breach of any of the terms or conditions of this paragraph 12 or this
Lease. 
  
 (d) If Lessee’s obligations under this Lease have been guaranteed
by third parties, then an assignment or sublease, and Lessor’s consent thereto, shall not be effective unless said guarantors give their written consent to such sublease and the terms thereof. 
  
 (e) The consent by Lessor to any assignment or subletting shall not constitute a consent to
any subsequent assignment or subletting by Lessee or to any subsequent or successive assignment or subletting by the sublessee. However, Lessor may consent to subsequent subletting and assignments of the sublease or any amendments of modifications
thereto without notifying Lessee or anyone else liable on the lease or sublease and without obtaining their consent and such action shall not relieve such persons from liability under this Lease or said sublease; however such persons shall not be
responsible to the extent any such amendment or modification enlarges or increases the obligations of the Lessee or sublessee under this Lease or such sublease. 
  

(f) In the event of any default under this Lease, Lessor may proceed directly against Lessee, any guarantors or any one else responsible for the performance of this
Lease, including the sublessee, without first exhausting Lessor’s remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor or Lessee. 
  
 (g) Lessor’s written consent to any assignment or subletting of the Premises by Lessee
shall not constitute an acknowledgement that no default then exists under this lease of the obligations to be performed by Lessee nor shall such consent be deemed a waiver of any then existing default, except as may be otherwise stated by Lessor at
the time. 
  
 (h) The discovery of the fact that any financial statement relied
upon by Lessor in giving its consent to an assignment or subletting was materially false shall, at Lessor’s election, render Lessor’s said consent null and void. 
  
 12.4 Additional Terms and Conditions Applicable to Subletting. Regardless of Lessor’s consent, 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
rentals and income arising from any sublease heretofore or hereafter made by Lessee, and, Lessor may collect such rent and income and apply same toward Lessee’s obligations under this Lease; provided, however, that until default shall occur in
the performance of Lessee’s obligations under this Lease, Lessee may receive, collect and enjoy the rents accruing under such sublease. Lessor shall not, by reason of this or any other assignment of such sublease to Lessor nor by reason of the
collection of the rents from a sublessee, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of Lessee’s obligations to such sublessee under such sublease. Lessee hereby irrevocable authorizes and directs
any such sublessee, upon receipt of a written notice from Lessor stating that a default exists in the performance of Lessee’s obligations under this Lease, to pay to Lessor the rents due and to become due under the sublease. Lessee agrees that
such sublessee shall have the right to rely upon any such statement and request from Lessor, and that such sublessee shall pay such rents to Lessor without any obligation or right to inquire as to whether such default exists and notwithstanding any
notice from or claim from Lessee to the contrary. Lessee shall have no right or claim against said sublessee or Lessor for any such rents so paid by and sublessee to Lessor. 
  
 (b) No sublease entered into by Lessee shall be effective unless and until it has been approved in writing by Lessor. In entering into any
sublease, Lessee shall use only such form of sublessee as is satisfactory to Lessor, and once approved by Lessor, such sublease shall not be changed or modified without Lessor’s prior written consent. Any sublease shall, by reason of entering
into a sublease under this lease, be deemed 
  

			
		
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 for the benefit of Lessor, to have assumed and agreed to conform and comply with each and every obligation herein to be
performed by Lessor other than such obligations as are contrary to or inconsistent with provisions contained in a sublease to which Lessor has expressly consented in writing. 
  
 (c) In the event Lessee shall default in the performance of its obligations under this Lease, Lessor at its option and without any
obligation to do so, may require any sublessee to attorn to Lessor, in which event Lessor shall undertake obligations of Lessee under such sublease form the time of the exercise of said option to the termination of such sublease; provided, however,
Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee to Lessee or for any other prior defaults of Lessee under such sublease. 
  
 (d) No sublessee shall further assign or subject all or any part of the Premises without Lessor’s prior written consent. 
  
 (e) With respect to any subletting to which Lessor has consented, Lessor agrees to deliver a
copy of any notice of default by Lessee to the sublessee. Such sublessee shall have the right to cure a default of Lessee within three (3) days after service of said notice of default upon such sublessee, and the sublessee shall have a right of
reimbursement and offset from and against Lessee for any such defaults cured by the sublessee. 
  
 12.5 Lessor’s Expenses. In the event Lessee shall assign or sublet the Premises or request the consent of Lessor to any assignment or subletting or if Lessee shall request the consent of Lessor for any act
Lessor proposes to do then Lessee shall pay Lessor’s reasonable costs and expenses incurred in connection therewith, including attorneys’, architects’ engineers’ or other consultants’ fees. 
  
 12.6 Conditions to Consent. Lessor reserves the right to condition any approval to
assign or sublet upon Lessor’s determination that (a) the proposed assignee or sublessee shall conduct a business on the Premises of a quality substantially equal to that of Lessee and consistent with the general character of the other
occupants of the Office Building Project and not in violation of any exclusives or rights them held by other tenants, and (b) the proposed assignee or sublessee be at least as financially responsible as Lessee was expected to be at the time of the
execution of this Lease or of such assignment of subletting, whichever is greater. 
  
 13. Default; Remedies. 
  
 13.1 Default. The occurrence of
any one or more of the following events shall constitute a material default of this Lease by Lessee: 
  
 (a) The vacation or abandonment of the Premises by Lessee, Vacation of the Premises shall include the failure to occupy the Premises for a continuous period of sixty (60) days or more, whether or not the rent is paid.

  
 (b) The breach by Lessee of any of the covenants, conditions or provisions of
paragraphs 7.3(a), (b) or (d) (alterations), 12.1 (assignment or subletting), 13.1(a) (vacation or abandonment), 13.1(e) (insolvency), 13.1(f) (false statement), 16(a) (estopel certificate), 30(b) (subordination), 33 (auctions), or 40.1 (easements),
all of which are hereby deemed to be material, non-curable defaults without the necessity of any notice by Lessor to Lessee thereof. 
  
 (c) The failure by Lessee to make any payment of rent or any other payment requires to be made by Lessee hereunder, as and when due, where such failure shall continue for
a period of three (3) days after written notice thereof from Lessor to Lessee. In the event that Lessor serves Lessee with a Notice to Pay Rent or Quit pursuant to applicable Unlawful Detainer statutes such Notice to Pay Rent or Quit shall also
constitute the notice required by this subparagraph. 
  
 (d) The failure by
Lessee to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Lessee other than those referenced in subparagraphs (b) and (c), above, where such failure shall continue for a period of thirty
(30) days after written notice thereof from Lessor to Lessee; provided, however, that if the nature of Lessee’s noncompliance is such that more than thirty (30) days are reasonably required for its cure, then Lessee shall not be deemed to be in
default if Lessee commenced such cure within said thirty (30) day period and thereafter diligently pursues such cure to completion. To the extent permitted by law, such thirty (30) day notice shall constitute the sole and exclusive notice required
to be given to Lessee under applicable Unlawful Detainer statutes. 
  

			
		
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 (e)(I) The making by Lessee of any general arrangement of general assignment for the benefit of creditors; (II) Lessee
becoming a “debtor” as defined in 11 U.S.C.s101 or any successor stature 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. In the event that any provision of this paragraph 13.1(e) is
contrary to any applicable law, such provision shall be of no force or effect. 
  
 (f) The discovery by Lessor that any financial statement given to Lessor by Lessee, or its successor in interest or by any guarantor of Lessee’s obligation hereunder was materially false. 
  
 13.2 Remedies. In the event of any material default or breach of this Lease by Lessee,
Lessor may at any time thereafter, with or without notice or demand and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such default: 
  
 (a) Terminate Lessee’s right to possession on the Premises by any lawful means, in which case this lease and the term hereof shall
terminate and Lessee shall immediately surrender possession of the Premises to Lessor. In such even Lessor shall be entitled to recover from Lessee all damages incurred by Lessor by reason of Lessee’s default 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 any real estate commission actually paid; the worth at the time of award by the
court having jurisdiction thereof the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the period that Lessee proves could be reasonably avoided; that portion of the
leasing commission paid by Lessor pursuant to paragraph 15 applicable to the unexpired term of this Lease. 
  
 (b) Maintain Lessee’s right to possession in which case this Lease shall continue in effect whether or not Lessee shall have vacated or abandoned the Premises. In such event Lessor shall be entitled to enforce
all of Lessor’s rights and remedies under this Lease, including the right to recover the rent as it becomes due hereunder. 
  
 (c) Pursue any other remedy now or hereafter available to Lessor under the laws or judicial decisions of the state wherein the Premises are located. Unpaid installments
of rent and other unpaid monetary obligations of Lessee under the terms of this Lease shall bear interest from the date due at the maximum rate then allowable by law. 
  
 13.3 Default by Lessor. Lessor shall not be in default unless Lessor fails to perform obligations required of Lessor within a
reasonable time, but in no event later than thirty (30) days after written notice be Lessee to Lessor and to the holder of any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to
Lessee in writing, specifying wherein Lessor has failed to perform such obligation; provided, however, that if the nature of Lessor’s obligation is such that more than thirty (30) days are required for performance then Lessor shall not be in
default if Lessor commences performance within such 30-day period and thereafter diligently pursues the same to completion. 
  
 13.4 Lessee’s Remedy. If Lessor shall fail to perform any covenant, term or condition of this Lease upon Lessor’s part to be performed, Lessee shall be
required to deliver to Lessor written notice of same. If, as consequence of such default, Lessee shall recover a money judgment against Lessor, such judgment shall be satisfied only out of the right, title and interest of Lessor in the Office
Building Project, and out of rent or other income from such property receivable by Lessor or out of consideration received by Lessor from the sale or other disposition of all or any part of Lessor’s right, title or interest in the Office
Building Project, and no action for any deficiency may be sought or obtained from or against Lessor. This exculpation of personal liability is absolute and without any exception whatsoever. 
  
 13.5 Late Charges. Lessee hereby acknowledges that late payment by Lessee to Lessor of
Base Rent, Lessee’s Share of Operating Expense increase or other sums due hereunder 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 are charges which may be 
  

			
		
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 imposed on Lessor by the terms of any mortgage or trust deed covering the Office Building Project. Accordingly, if any
installment of Base Rent, Operating Expense increase, or any other sum due from Lessee shall not be received by Lessor or Lessor’s designee within ten (10) days after such amount shall be due, then, without any requirement for notice to Lessee,
Lessee shall pay to Lessor a late charge equal to 6% of 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 late payment by Lessee. Acceptance of
such late charge by Lessor shall in no event constitute a waiver of Lessee’s default with respect to such overdue amount, nor prevent Lessor from exercising any of the other rights and remedies granted hereunder. 
  
 14. Condemnation. If the Premises or any portion thereof or the Office Building
Project are taken under the power of eminent domain, or sold under the threat of the exercise of said power (all of which are herein called “condemnation”), this Lease shall terminate as to the part so taken as of the date the condemning
authority takes title or possession, whichever first occurs, provided that if so much of the Premises or the Office Building Project are taken such condemnation as would substantially and adversely affect the operation and profitability of
Lessee’s business conducted from the Premises, Lessee shall have the option, to be exercised only in writing within thirty (30) days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice, within
thirty (30) days after the condemning authority shall have taken possession), to 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 rent and Lessee’s Share of Operating Expense increase shall be reduced in the proportion that the floor area of the Premises taken bears to the
total floor area of the Premises. Common Areas taken shall be excluded from the Common Areas usable by Lessee and no reduction of rent shall occur with respect thereto or by reason thereof. Lessor shall have the option in its sole discretion to
terminate this Lease as of the taking of possession by the condemning authority, by giving written notice to Lessee of such election within thirty (30) days after receipt of notice of a taking by condemnation of any part of the Premises or the
Office Building Project. Any award for the taking of all or any art of the Premises or the Office Building Project under the power of eminent domain or any payment made under threat of the exercise of such power shall be the property of Lessor,
whether such award shall be made as compensation for diminution in value of the leasehold or for the taking of the fee, or as severance damages; provided, however, that Lessee shall be entitled to any separate award for loss of or damage to
Lessee’s trade fixtures, removable personal property and unamortized tenant improvements that have been paid for by Lessee. For that purpose the cost of such improvement shall be amortized over the original term of this Lease excluding any
options, in the event that this Lease is not terminated by reason of such condemnation, Lessor shall to the extent of severance damages received by Lessor in connection with such condemnation, repair any damage to the Premises caused by such
condemnation except to the extent that Lessee has been reimbursed therefor by the condemning authority. Lessee shall pay any amount in excess of such severance damages required to complete such repair. 
  
 15. Broker’s Fee. 
  
 (a) The Brokers involved in this transaction are no broker as “listing broker” and no broker as “cooperating
broker,” licensed real estate broker(s), A “cooperating broker is defined as any broker other than the listing broker entitled to a share of any commission arising under this Lease. Upon execution of this Lease by both parties Lessor shall
pay to said      brokers jointly, or in such separate shares as they may mutually designate in writing, a fee as set forth in a separate agreement between Lessor and said broker(s), or in the event there is no separate agreement
between Lessor and said broker(s), the sum of $0, for the brokerage services rendered by said broker(s) to Lessor in this transaction. 
  
 (b) Lessee and Lessor each represent and warrant to the other that neither has had any dealings with any person, firm, broker or finder (other than the person(s), if any,
whose names are set forth in paragraph 15(a), above, in connection with the negotiation of this Lease and/or the consummation of the transaction contemplated hereby, and no other broker or other person, firm or entity is entitled to any commission
or finder’s fee in connection with said transaction and Lessee and Lessor do each hereby indemnify and hold the other harmless from and against any costs, expenses, attorneys’ fees or liability for compensation or charges which may be
claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying party. 
  

			
		
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 16. Estoppel Certificate. 
  
 (a) Each party (as “responding party”) shall at any time upon not less than ten (10) days’ prior written notice from the
other party (“requesting party”) execute, acknowledge and deliver to the requesting party a statement in writing (I) certifying that this Lease is unmodified and in full force and effect (or, modified, slating the nature of such
modification and certifying that this Lease, as so modified, is in full force and effect) and the date to which the rent and other charges are paid in advance, if any, and (II) acknowledge that there are not, to the responding party’s
knowledge, any uncured defaults on the part of the requesting party, or specifying such defaults if any are claimed. Any such statement may be conclusively relied upon by any prospective purchaser or encumbrancer of the Office Building Project or of
the business of Lessee. 
  
 (b) At the requesting party’s option, the failure
to deliver such statement within such time shall be a material default of this Lease by the party who is to respond, without any further notice to such party, or it shall be conclusive upon such party that (I) this 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. 
  
 17. Lessor’s Liability. The term “Lessor” as
used herein shall mean only the owner or owners, at the time in question, of the fee title or a lessee’s interest in a ground lease of the Office Building Project, and except as expressly provided in paragraph 15, in the event of any transfer
of such title or interest, Lessor herein named (and in case of any subsequent transfers then the grantor shall be relieved from and after the date of such transfer of all liability as respects Lessor’s obligations thereafter to be performed,
provided that any funds in the hands of Lessor or the then grantor at the time of such transfer, in which Lessee has an interest, shall be delivered to the grantee. The obligations continued in this Lease to be performed by Lessor shall, subject as
aforesaid, be binding on Lessor’s successors and assigns, only during their respective periods of ownership. 
  
 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. Interest on Past–due Obligations. Except as
expressly herein provided, any amount due to Lessor not paid when due shall bear interest at the maximum rate than allowable by law or judgments from the date due. Payment of such interest shall not excuse or cure any default by Lessee under this
Lease; provided, however, that interest shall not be payable on late charges incurred by Lessee nor on any amounts upon which late charges are paid by Lessee. 
  

20. Time of Essence. Time is of the essence with respect to the obligations to be performed under this Lease. 
  
 21. Additional Rent. All monetary obligations of Lessee to Lessor under the terms of
this Lease, including but not limited to Lessee’s Share of Operating Expense Increase and any other expenses payable by Lessee hereunder shall be deemed to be rent. 
  
 22. Incorporation of Prior Agreements: Amendments. This Lease contains all agreements of the parties with respect to any matter
mentioned herein. No prior or contemporaneous agreement or understanding pertaining to any such matter shall be effective. This lease may be modified in writing only, signed by the parties in interest at the time of the modification. Except as
otherwise stated in this Lease, Lessee hereby acknowledges that neither the real estate broker listed in paragraph 15 hereof nor any cooperating broker on this transaction nor the Lessor or any employee or agents of any of said persons has made any
oral or written warranties or representations to lessee relative to the condition or use by Lessee of the premises or the office Building Project and Lessee acknowledges that Lessee assumes all responsibility regarding the Occupational Safety Health
Act, the legal use and adaptability of the Premises and the compliance thereof with all applicable laws and regulations in effect during the term of this Lease. 
  

			
		
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 23. Notices. Any notice required or permitted to be given hereunder shall be in writing any may be given by
personal delivery or by certified or registered mail, and shall be deemed sufficiently given if delivered or addressed to Lessee or to Lessor at the address noted below or adjacent to the signature of the respective parties, as the case may be.
Mailed notices shall be deemed given upon actual receipt at the address required, or forty-eight hours following deposit in the mail, postage prepaid, whichever first occurs. Either party may by notice to the other specify a different address for
notice purposes except that upon Lessee’s taking possession of the Premises, the Premises shall constitute Lessee’s address for notice purposes. A copy of all notices required or permitted to be given to Lessor hereunder shall be
concurrently transmitted to such party or parties at such addresses as Lessor may from time to time hereunder designate by notice to Lessee. 
  
 24. Waivers. No waiver by Lessor of any provision hereof shall be deemed a waiver of any other provision hereof or of any subsequent breach by Lessee of the same
or any other provision. Lessor’s consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor’s consent to or approval of any subsequent act by Lessee. The acceptance of rent hereunder by Lessor
shall not be a waiver of any preceding breach by lessee of any provision hereof, other than the failure of Lessee to pay the particular rent so accepted, regardless of Lessor’s knowledge of such preceding breach at the time of acceptance of
such rent. 
  
 25. Holding Over. If lessee, with Lessor’s consent,
remains in possession of the Premises or any part thereof after the expiration of the term thereof, such occupancy shall be a tenancy from month to month upon all the provisions of this Lease pertaining to the obligations of Lessee, except that the
rent payable shall be two hundred percent (200%) of the rent payable immediately preceding the termination date of this Lease, and all Options, if any, granted under the terms of this Lease shall be deemed terminated and be of no further effect
during said month to month tenancy. 
  
 26. 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. 
  
 27. Covenants and Conditions. Each provision of this Lease performable by Lessee shall be deemed both a covenant and a condition. 
  
 28. Binding Effect; Choice of law. Subject to any provisions hereof restricting
assignment or subletting by Lessee and subject to the provisions of paragraph 17, this Lease shall bind the parties, their personal representatives, successors and assigns. This Lease shall be governed by the laws of the State where the Office
Building Project is located and any litigation concerning this Lease between the parties hereto shall be initiated in the county in which the Office Building Project is located. 
  
 29. Subordination. 
  
 (a) This Lease, and any Option or right of first refusal granted hereby, at Lessor’s option, shall be subordinate to any ground lease, mortgage, deed of trust, or
any other hypothecation or security now or hereafter placed upon the Office Building Project and to any and all advances made on the security thereof and to all renewals, modifications, consolidations, replacements and extensions thereof.
Notwithstanding such subordination, Lessee’s right to quiet possession of the Premises shall not be disturbed if Lessee is not in default and so long as Lessee shall pay rent and observe and perform all of the provisions of this Lease, unless
this Lease is otherwise terminated pursuant to its terms. If any mortgage, trustee or ground lessor shall elect to have this Lease and any Options granted hereby prior to the lien of its mortgage, deed of trust or ground lease, and shall give
written notice thereof to lessee, this Lease and such Options shall be deemed prior to such mortgage, deed of trust or ground lease, whether this lease or such Options are dated prior or subsequent to the date of said mortgage, deed of trust or
ground lease or the date of recording thereof. 
  

			
		
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 (b) Lessee agrees to execute any documents required to effectuate an attornment, a subordination, or to make this Lease
or any Option granted herein prior to the lien of any mortgage, deed of trust or ground lease, as the case may be. Lessee’s failure to execute such documents within ten (10) days after written demand shall constitute a material default by
Lessee hereunder without further notice to Lessee or, at Lessor’s option, Lessor shall execute such documents on behalf of Lessee as Lessee’s attorney-in-fact. Lessee does hereby make, constitute and irrevocably appoint Lessor as
Lessee’s attorney-in-fact and in Lessee’s name, place and stead, to execute such documents in accordance with this paragraph 29(b). 
  
 30. Attorneys’ Fees 
  
 (a) If either party or the broker(s) named herein bring an action to enforce the terms hereof or declare rights hereunder, the prevailing party in any such action, trial
or appeal thereon, shall be entitled to his reasonable attorneys’ fees to be paid by the losing party as fixed by the court in the same or separate suit, and whether or not such action is pursued to decision or judgment. The provisions of this
paragraph shall inure to the benefit of the broker named herein who seeks to enforce a right hereunder. 
  
 (b) The attorneys’ fee award shall not be computed in accordance with any court fee schedule, but shall be as to fully reimburse all attorneys’ fees reasonably incurred in good faith. 
  
 (c) Lessor shall be entitled to reasonable attorneys’ fees and all other costs and
expenses incurred in the preparation and services of notice of default and consultations in connection therewith, whether or not a legal transaction is subsequently commenced with such default. 
  
 31. Lessor’s Access. 
  
 (a) Lessor and Lessor’s agents shall have the right to enter the premises at reasonable
times for the purpose of inspecting the same, performing any services required of Lessor, showing the same to prospective purchases, lenders, or lessees, taking such safety measures, erecting such scaffolding or other necessary structures, making
such alterations, repairs, improvements or additions to the Premises or to the Office Building project as Lessor may reasonably deem necessary or desirable and the erecting, using and maintaining of utilities, services, pipes and conduits through
the Premises and/or other premises as long as there is no material adverse effect to Lessee’s use of the Premises. Lessor may at any time during the last 120 days of the term hereof place on or about the Premises any ordinary “For
Lease” signs. 
  
 (b) All activities of Lessor pursuant to this paragraph
shall be without abatement of rent, nor shall Lessor have any liability to Lessee for the same. 
  
 (c) Lessor shall have the right to retain keys to the Premises and to unlock all doors in or upon the premises other than to files, vaults and safes, and in the case of emergency to enter the Premises by any
reasonably appropriate means, and any such entry shall not be deemed a forceable or unlawful entry or detainer of the Premises or an eviction. Lessee waives any charges for damages or injuries or interference with lessee’s property or business
in connection therewith. 
  
 32. Auctions. Lessee shall not conduct, nor
permit to be conducted, either voluntarily or involuntarily, any auction upon the Premises or the Common Areas without first having obtained Lessor’s prior written consent. Notwithstanding anything to the contrary in this Lease, Lessor shall
not be obligated to exercise any standard of reasonableness in determining whether to grant such consent. The holding of any auction on the premises or Common Areas in violation of this paragraph shall constitute a material default of this Lease.

  
 33. Signs. Lessee shall not place any sign upon the Premises or the
Office Building Project without Lessor’s prior written consent. Under no circumstances shall Lessee place a sign on any roof of the Office Building Project. Lessee shall have the right to place signage on the De la Vina/Canon Perdido sides with
Lessor’s consent. 
  
 34. Merger. The voluntary or other surrender of
this Lease by Lessee, or a mutual cancellation thereof, or a termination by Lessor, shall not work a merger, and shall, at the option of Lessor, terminate all or any existing sub tenancies or may, at the option of Lessor, operate as an assignment to
Lessor of any or all of such sub tenancies. 
  

			
		
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 35. Consents. Except for paragraph 32 (auctions) and 33 (signs) hereof, wherever in this Lease the consent
of one party is required to an act of the other party such consent shall not be unreasonably withheld or delayed. 
  
 36. Guarantor. In the event that there is a guarantor of this lease, said guarantor shall have the same obligations as Lessee under this Lease. 

 
 37. Quiet possession. Upon Lessee paying the rent for the Premises and
observing and performing all of the covenants, conditions and provisions on Lessee’s part to be observed and performed hereunder, Lessee shall have quiet possession of the premises for the entire term hereof subject to all of the provisions of
this Lease. The individuals executing this lease on behalf of Lessor represent and warrant to Lessee that they are fully authorized and legally capable of executing this Lease on behalf of Lessor and that such execution is binding upon all parties
holding an ownership interest in the Office Building Project. 
  
 38. Options. 
  
 38.1 Option to
Extend. Lessor hereby grants to Lessee no separate option(s) to extend the term of this Lease for an additional term of no year(s) each, on the same terms and conditions of this Lease, except that the Base Rent for each extended term
shall be determined as provided herein. Lessee shall exercise the option by giving Lessor written notice at least six (6) months, but not more than nine (9) months, prior to the expiration of the then current term, time being of the essence. Lessee
shall have no right to exercise an option during the time commencing from the date Lessor gives to Lessee notice of default, and continuing until the default alleged in said notice of default is cured, or during the time commencing on the day after
any regular monthly installment of rent to Lessor is due from Lessee and unpaid, without any necessity of notice thereof to Lessee, and continuing until the obligation is paid. The period of time within which the option may be exercised shall not be
extended or enlarged by reason of Lessee’s inability to exercise the option because of the provisions hereof. If any option granted hereby is not executed, all succeeding options shall terminate. Prior to the commencement of each extended term
of this Lease, Lessor and Lessee shall adjust the Base Rent for the new term to reflect the then prevailing fair rental value that would be obtained in an arms-length transaction with a third party for the current use by Lessee or a substantially
similar use and upon terms similar to those set forth in this Lease. The fair rental value shall be determined by the parties as follows: 
  
 Not later than five (5) months prior to the commencement of any extended term of this Lease, Lessor and Lessee shall meet in an effort to negotiate, in good faith, the
fair market rental value of the Premises as of such commencement date. If the parties cannot agree on the fair rental value, or on a single appraiser, within a reasonable time (not to exceed 10 days) then, each party shall appoint one appraiser and
the two so appointed shall designate a third. Each appraiser shall independently appraise the Premises (inclusive of all tenant improvements) and report his findings to the parties within fifteen (15) days of his appointment. Fair rental value shall
be the average of the three appraisals; however, any appraisal which varies by more than fifteen percent (15%) of the average of the other two shall be disregarded. If either or both the high and low appraisals are more than fifteen percent (15%)
higher or lower than the middle appraisal, such high or low appraisal, or both, will be disregarded. In no event shall the fair rental value be less than the amount of the Base Rent payable for the month immediately prior to such adjustment, plus
the next cost of living increase as set forth in Paragraph 4.3. In the event that either party fails to appoint an appraiser within the time specified herein, then fair rental value shall be determined by the single appraiser appointed by the other
party. Each appraiser shall be a real estate broker licensed in California, and conducting commercial real estate business in the City of Santa Barbara, or shall be a member of the American Institute of Real Estate Appraisers, or comparable
professional society. Each party shall pay its own appraiser and share equally the costs of the third appraiser. The Base Rent thus established by the parties shall serve as the basis for subsequent cost of living adjustments as set forth in
Paragraph 4.3, except that the denominator of the fraction shall be the index for the first month of the extended term. 
  

			
		
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 38.2 Definition. As used in this paragraph the word “Option” has the following meaning: (1) the right or
option to extend the term of this Lease or to renew this Lease or to extend or renew any lease that Lessee has on other property of Lessor; (2) the option of first right of refusal to lease the Premises or the right of first offer to lease the
Premises or the right of first refusal to lease other space within the Office Building Project or other property of Lessor or the right of first offer to lease other space within the Office Building Project or other property of Lessor; (3) the right
or option to purchase the Premises or the Office Building Project, or the right of first refusal to purchase the premises or the Office Building Project or the right of first offer to purchase the Premises or the Office Building Project, or the
right or option to purchase other property of Lessor, or the right of first refusal to purchase other property of Lessor or the right of first offer to purchase other property of Lessor. 
  
 38.3 Options personal. Each Option granted to Lessee in this lease is personal to the original Lessee and may be exercised only by
the original Lessee while occupying the Premises who does so without the intent of thereafter assigning this Lease or subletting the Premises or any portion thereof, and may not be exercised or be assigned, voluntarily or involuntarily, by or to any
person or entity other than Lessee; provided, however, that an Option may be exercised by or assigned to any Lessee Affiliate as defined in paragraph 12.2 of this Lease. The Options, if any, herein granted to Lessee are not assignable separate and
apart from this Lease, nor may any Option be separated from this Lease in any manner, either by reservation or otherwise. 
  
 38.4 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 option
to extend or renew this Lease has been so exercised. 
  
 38.5 Effect of Default
on Options. 
  
 (a) Lessee shall have no right to exercise an Option, not
withstanding any provision in the grant of Option to the contrary, (I) during the time commencing from the date Lessor gives Lessee a notice of default pursuant to paragraph 13.1(c) or 13.1(d) and continuing until the noncompliance alleged in said
notice is cured, or (II) during the period of time commencing on the day after a monetary obligation to Lessor is due from Lessee and unpaid (without any necessity for notice thereof to lessee) and continuing until the obligation is paid, or (III)
in the event that Lessor has given to Lessee three or more notices of default under paragraph 13.1(c), or paragraph 13.1(d), whether or not the defaults are cured, during the 12 month period of time immediately prior to the time that Lessee attempts
to exercise the subject Option, (IV) if Lessee has committed any non-curable breach, including without limitation those described in paragraph 13.1(b), or is otherwise in default of any of the terms, covenants or conditions of this Lease.

  
 (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 38.4(a). 
  
 (c) All rights of Lessee under the provisions of 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 during the term of this Lease, (I) Lessee fails to pay Lessor a monetary obligation of Lessee for a period of thirty (30) days after such obligation becomes due (without any necessity of Lessor to give notice
thereof to Lessee), or (II) Lessee fails to commence to cure a default specified in paragraph 13.1(d) within thirty (30) days after the date that Lessor gives notice to Lessee of such default and/or Lessee fails thereafter to diligently prosecute
said cure to completion, or (III) Lessor give to Lessee three of more notices of default under paragraph 13.1©, or paragraph 13.1(d), whether or not the defaults are cured, or (IV) if Lessee has committed any non-curable breach, including without limitation those described in paragraph 13.1(b),
or is otherwise in default of any of the terms, covenants and conditions of this lease. 
  
 39. Security Measures-Lessor’s Reservations. 
  
 39.1 Lessee
hereby acknowledges that Lessor shall have no obligation whatsoever to provide guard service or other security measures for the benefit of the Premises or the Office Building Project. Lessee assumes all responsibility for the protection of Lessee,
its agents, and invitees and the property of Lessee and Lessee’s agents and invitees from acts of third parties. 
  

			
		
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 39.2 Lessor shall have the following right: 
  

	(a)	 	To change the name, address or title of the Office Building Project or Building in which the premises are located upon not less than 90 days prior written notice;


  

	(b)	 	To, at Lessee’s expense, provide and install Building standard graphics on the door of the Premises and such portions of the Common Areas as Lessor shall deem appropriate;


  

	(c)	 	To permit any lessee the exclusive right to conduct any business as long as such exclusive does not conflict with any rights expressly given herein; 

  

	(d)	 	To place such signs, notices or displays as Lessor reasonably deems necessary or advisable upon the roof, exterior of the buildings or the Office Building Project or on pole signs
in the Common Areas; 

  
 39.3
Lessee shall not: 
  

	(a)	 	Use a representation (photographic or otherwise) of the building or the Office Building Project or their name(s) in connection with Lessee’s business. 


 

	(b)	 	Suffer or permit anyone, except in emergency, to go upon the roof of the Building. 

  
 40. Easements. 
  
 40.1 Lessor reserves to itself the right, from time to time, to grant such easements, rights and dedications that Lessor deems necessary or desirable, 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 shall sign any of the aforementioned documents upon
request of Lessor and failure to do so shall constitute a material default of this Lease by Lessee without the need for further notice to Lessee. 
  
 40.2 The obstruction of Lessee’s view, air, or light by any structure erected in the vicinity of the Building, whether by Lessor or third parties, shall in no way
affect this Lease or impose any liability upon Lessor. 
  
 41. 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 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 under the provisions of this lease. 
  
 42. Authority. If Lessee is a corporation, trust, or general or limited partnership,
Lessee, and each individual executing this Lease on behalf of such entity represent and warrant that such individual is duly authorized to execute and deliver this Lease on behalf of said entity. If Lessee is a corporation, trust or partnership,
Lessee shall, within thirty (30) days after execution of this Lease, deliver to Lessor evidence of such authority satisfactory to Lessor. 
  
 43. Conflict. Any conflict between the printed provisions, Exhibits or Addenda of this Lease and the typewritten or handwritten provisions, if any, shall be
controlled by the typewritten or handwritten provisions. 
  
 44. No Offer.
Preparation of this Lease by Lessor or Lessor’s agent and submission of same to Lessee shall not be deemed an offer to Lessee to lease. This Lease shall become binding upon Lessor and Lessee only when fully executed by both parties.

  
 45. Lender Modification. Lessee agrees to make such reasonable
modifications to this Lease as may be reasonably required by an institutional lender in connection with the obtaining of normal financing or refinancing of the Office Building Project. 
  
 46. Lender Approval. If required by Lessor’s lender, this Lease shall be contingent upon approval by Lessor’s lender(s)
within thirty (30) working days after the date of this Lease. 
  

			
		
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 47. Multiple Parties. If more than one person or entity is named as either Lessor or Lessee herein, except
as otherwise expressly provided herein, the obligations of the Lessor or Lessee, herein shall be the joint and several responsibility of all persons or entities named herein as such Lessor and Lessee, respectively. 
  
 48. Hazardous Materials. 
  
 (a) The term “Hazardous Materials”, as used in this Lease, shall include, without
limitation, flammables, explosives, radioactive materials, asbestos, polychlorinated biphenyls (PCBs), chemicals known to cause cancer or reproductive toxicity, pollutants, contaminants, hazardous wastes, toxic substances or related materials,
petroleum and petroleum products, and substances declared to be hazardous or toxic under any law or regulation now or hereafter enacted or promulgated by any governmental authority. 
  
 (b) The term “Laws” means all applicable federal, state and municipal laws, ordinances, rules, regulations, orders, guidelines,
and judgments. 
  
 (c) Lessee shall not cause or permit to occur (I) any violation
of the Laws now or hereafter enacted or issued, related to environmental conditions on, under, or about the Premises, or arising from Lessee’s leasehold interest in or use or occupancy of the Premises, including but not limited to, soil and
ground water conditions; or (II) the use, generation, release, manufacture, refining, production, processing, storage or disposal of any hazardous materials on, under, or about the Premises, or the transportation to or from the Premises of any
Hazardous Materials. 
  
 (d) Lessee shall, at Lessee’s own expense, make all
submissions to, provide all information required by, and comply with all requirements of all governmental authorities (the “Authorities”) under the Laws. 
  
 (e) Should any Authority or any third party demand that a cleanup plan be prepared, and that a cleanup be undertaken because of any deposit,
spill, discharge, or other release of Hazardous Materials that occurs during the term of this Lease, at or from the Premises, or which arises at any time from Lessee’s use or occupancy of the Premises, then Lessee shall, at its own expense,
prepare and submit the required plans and all related bonds and other financial assurances, and Lessee shall carry out all such cleanup plans 
  
 (f) Lessee shall indemnify, defend and hold Lessor, and Lessor’s agents, employees and lenders harmless from all fines, suits, procedures, claims and actions of
every kind, all costs associated therewith (including attorneys’ and consultants fees) arising out of or in any way connected with any deposit, spill, discharge or other release of Hazardous Materials that occurs during the term the Lease term
(including any extensions thereof), at or from the Premises, or which arises at any time from Lessee’s use or occupancy of the Premises, or from Lessee’s failure to provide all information, make all submissions and take all steps required
by all Authorities and under the Laws. 
  
 (g) Lessee’s obligations and
liabilities under this paragraph shall survive the expiration or earlier termination of this Lease. 
  
 49. Attachments. Attached hereto are the following documents with constitute a part of this lease: 
  
 Exhibit A, Exhibit B, and Exhibit C 
  
 LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN AND BY 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. 
  
 IF THIS LEASE HAS BEEN FILLED IN IT HAS BEEN PREPARED FOR SUBMISSION TO YOUR ATTORNEY FOR HIS
APPROVAL, NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY THE REAL ESTATE BROKER OR ITS AGENTS OR EMPLOYEES AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE
TRANSACTION RELATING THERETO; THE 
  

			
		
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 PARTIES SHALL RELY SOLELY UPON THE ADVICE OF THEIR OWN LEGAL COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.

  

			
	 LESSOR
	 	LESSEE
		
	 Timm Properties II,
 A California Limited Partnership
 233 East Carrillo Street Suite D
 Santa Barbara, CA 93101
	 	 CallWave, Inc.
 136 West Canon Perdido Street Suite A
 Santa Barbara, CA 93101


  

							
				
	 Date:
	 	 1/29/02

	  	 Date:
	 	 12/18/01


				
	 By:
	 	 /s/ Matthew J. Easter

	  	 By:
	 	 /s/ Robert Dolan


	 Matthew J. Easter Vice President
	  	 Robert Dolan Chief Executive Officer


  

			
		
	 Initials:
	 	     /s/    ME


	 	 	     /s/    RAD




  

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