Lease Agreement



 Exhibit 10.20 

 

 

 STANDARD MULTI-TENANT OFFICE LEASE - GROSS 

AIR COMMERCIAL REAL ESTATE ASSOCIATION 
 1. Basic Provisions (“Basic Provisions”). 
 1.1 Parties:
This Lease (“Lease”), dated for reference purposes only May 21, 2010, is made by and between GSR II, LLC and LM Swan Way, LLC (Please see Exhibit A for Lessor description) (“Lessor”) and Higher
One Payments, Inc. (“Lessee”), (collectively the “Parties”, or individually a “Party”). 
 1.2(a) Premises: That certain portion of the Project (as defined below), known as Suite Numbers(s) suite 200 and 201, 2nd floor(s), consisting of approximately 11,760 rentable
square feet and approximately                      useable square feet (“Premises”). The
Premises are located at: 80 Swan Way, in the City of Oakland, County of Alameda, State of California, with zip code
                    . Suite 200 of the Premises consists of approximately 9,360 rentable square feet and Is referred to herein as the
“Suite 200 Premises”. Suite 201 of the Premises consists of approximately 2400 rentable square feet and is referred to herein as the “Suite 201 Premises”. In addition to Lessee’s rights to use and occupy the Premises
as hereinafter specified, Lessee shall have non-exclusive rights to the Common Areas (as defined in Paragraph 2.7 below) as hereinafter specified, but shall not have any rights to the roof, the exterior walls, the area above the dropped ceilings, or
the utility raceways of the building containing the Premises (“Building”) or to any other buildings in the Project. The Premises, the Building, the Common Areas, the land upon which they are located, along with all other buildings
and improvements thereon, are herein collectively referred to as the “Project.” The Project consists of approximately 52,000 rentable square feet. (See also Paragraph 2) 

1.2(b) Parking: 3.4:1000 unreserved and
                     reserved vehicle parking spaces at a monthly cost of
$                     per unreserved space and
$                     per reserved space. (See Paragraph 2.6) 
 1.3 Term: 5 years and 6 months (“Original Term”) commencing August 1, 2010 (“Commencement Date”) and ending January 31, 2016
(“Expiration Date”). (See also Paragraph 3) 
 1.4 Early Possession: N/A. If the Premises are
available Lessee may have non exclusive possession of the Premises commencing                      (“Early Possession
Date”). (See also Paragraphs 3.2 and 3.3) 
 1.5 Base Rent: $ See Addendum per month (“Base
Rent)”, payable on the 1st day of each month commencing See Addendum. (See also Paragraph 4) 
  ̈ If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. See Paragraph
                     

1.6 Lessee’s Share of Operating Expense Increase: twenty three percent ( 23%) (“Lessee’s
Share”). In the event that that size of the Premises and/or the Project are modified during the term of this Lease, Lessor shall recalculate Lessee’s Share to reflect such modification. 

1.7 Base Rent and Other Monies Paid Upon Execution: 
 (a) Base Rent: $ See Addendum for the period See Addendum. 

(b) Security Deposit: $15,904.00 (“Security Deposit”). (See also Paragraph 5) 

(c) Parking:
$                     for the period
                    . 
 (d) Other: $284,944.80 for Tenant Improvements. 
 (e)
Total Due Upon Execution of this Lease: $300,848.80. 
 1.8 Agreed Use: General Office Use.

  

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 1 OF
18 








 
(See also Paragraph 6) 
 1.9 Base Year; Insuring Party. The
Base Year is 2011. Lessor is the “Insuring Party”. (See also Paragraphs 4.2 and 8) 
 1.10 Real
Estate Brokers: (See also Paragraph 15) 
 (a) Representation: The following real estate brokers (the
“Brokers”) and brokerage relationships exist in this transaction (check applicable boxes): 

 ̈
                     represents Lessor exclusively (“Lessor’s Broker”); 

 ̈
                     represents Lessee exclusively (“Lessee’s Broker”); or 

x Equistone Partners, Inc. represents both Lessor and Lessee (“Dual Agency”).

 (b) Payment to Brokers: Upon execution and delivery of this Lease by both Parties, Lessor shall pay to the Brokers for
the brokerage services rendered by the Brokers the fee agreed to in the attached separate written agreement or if no such agreement is attached, the sum of
                     or
                    % of the total Base Rent payable for the Original Term, the sum of
                     or
                     of the total Base Rent payable during any period of time that the Lessee occupies the
Premises subsequent to the Original Term, and/or the sum of per separate agreement or                     % of the purchase price in
the event that the Lessee or anyone affiliated with Lessee acquires from Lessor any rights to the Premises. 
 1.11
Guarantor. The obligations of the Lessee under this Lease shall be guaranteed by                      (“Guarantor”).
(See also Paragraph 37) 
 1.12 Business Hours for the Building: 8 a.m. to 6 p.m., Mondays through Fridays
(except Building Holidays) and                      a.m. to
                     p.m. on Saturdays (except Building Holidays). “Building Holidays” shall mean the dates of observation of
New Year’s Day, President’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day, and N/A. 
 1.13 Lessor Supplied Services. Notwithstanding the provisions of Paragraph 11.1, Lessor is NOT obligated to provide the following within the Premises: 

 ̈ Janitorial services 
  ̈ Electricity 

 ̈ Other (specify):
                     

1.14 Attachments. Attached hereto are the following, all of which constitute a part of this Lease: 

 ̈ an Addendum consisting of Paragraphs
                     through
                    ; 
  ̈ a plot plan depicting the Premises; 
  ̈ a current
set of the Rules and Regulations; 
  ̈ a Work Letter; 

 ̈ a janitorial schedule; 
  ̈ other (specify): Exhibit A; Option(s) to Extend; Rent Adjustment (s) ; Addendum to Lease; Work Letter. 

2. Premises. 
 2.1
Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set forth in this Lease. While the approximate square footage of the
Premises may have been used in the marketing of the Premises for purposes of comparison, the Base Rent stated herein is NOT tied to square footage and is not subject to adjustment should the actual size be determined to be different. Note: Lessee
is advised to verify the actual size prior to executing this Lease. 
 2.2 Condition. Lessor shall deliver the
Premises to Lessee in a clean condition on the Commencement Date or the Early Possession Date, whichever first occurs (“Start Date”), and warrants that the existing electrical, plumbing, fire sprinkler, lighting, heating,
ventilating and air conditioning systems (“HVAC”), and all other items which the Lessor is obligated to construct pursuant to the Work Letter attached hereto, if any, other than those constructed by Lessee, shall be in good
operating condition on said date, that the structural elements of the roof, bearing walls and foundation of the Unit shall be free of material defects, and that the Premises do not contain hazardous levels of any mold or fungi defined as toxic under
applicable state or federal law. 
 2.3 Compliance. Lessor warrants to the best of its knowledge that the improvements
comprising the Premises and the Common Areas comply with the building codes that were in effect at the time that each such improvement, or portion thereof, was constructed, and also with all applicable laws, covenants or restrictions of record,
regulations, and ordinances (“Applicable Requirements”) in effect on the Start Date. Said warranty does not apply to the use to which Lessee will put the Premises, modifications which may be required by the Americans with
Disabilities Act or any similar laws as a result of Lessee’s use (see Paragraph 49), or to any Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for determining
whether or not the zoning and other Applicable Requirements are appropriate for Lessee’s intended use, and acknowledges that past uses of the Premises may no longer be allowed. If the Premises do not comply with said warranty, Lessor shall,
except as otherwise provided, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify the same. If the Applicable Requirements are hereafter changed so as to require
during the term of this Lease the construction of an addition to or an alteration of the Premises, the remediation of any Hazardous Substance, or the reinforcement or other physical modification of the Premises (“Capital
Expenditure”), Lessor and Lessee shall allocate the cost of such work as follows: 
 (a) Subject to Paragraph 2.3(c)
below, if such Capital Expenditures are required as a result of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however that if such

  

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 2 OF
18 








 
Capital Expenditure is required during the last 2 years of this Lease and the cost thereof exceeds 6 months’ Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee,
in writing, within 10 days after receipt of Lessee’s termination notice that Lessor has elected to pay the difference between the actual cost thereof and the amount equal to 6 months’ Base Rent. If Lessee elects termination, Lessee shall
immediately cease the use of the Premises which requires such Capital Expenditure and deliver to Lessor written notice specifying a termination date at least 90 days thereafter. Such termination date shall, however, in no event be earlier than the
last day that Lessee could legally utilize the Premises without commencing such Capital Expenditure. 
 (b) If such Capital
Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor shall pay for such Capital Expenditure and Lessee shall only be obligated to pay, each month
during the remainder of the term of this Lease or any extension thereof, on the date that on which the Base Rent is due, an amount equal to 1/144th of the portion of such costs reasonably attributable to the Premises. Lessee shall pay Interest on
the balance but may prepay its obligation at any time. If, however, such Capital Expenditure is required during the last 2 years of this Lease or if Lessor reasonably determines that it is not economically feasible to pay its share thereof, Lessor
shall have the option to terminate this Lease upon 90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within 10 days after receipt of Lessor’s termination notice that Lessee will pay for such Capital Expenditure.
If Lessor does not elect to terminate, and fails to tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same, with Interest, from Rent until Lessor’s share of such costs have been fully paid. If Lessee is
unable to finance Lessor’s share, or if the balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee shall have the right to terminate this Lease upon 30 days
written notice to Lessor. 
 (c) Notwithstanding the above, the provisions concerning Capital Expenditures are intended to apply
only to nonvoluntary, unexpected, and new Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use, change in intensity of use, or modification to the Premises then, and
in that event, Lessee shall either: (i) immediately cease such changed use or intensity of use and/or take such other steps as may be necessary to eliminate the requirement for such Capital Expenditure, or (ii) complete such Capital
Expenditure at its own expense. Lessee shall not have any right to terminate this Lease. 
 2.4 Acknowledgements. Lessee
acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises, (b) Lessee has been advised by Lessor and/or Brokers to satisfy itself with respect to the size and condition of the Premises (including but not
limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements), and their suitability for Lessee’s intended use, (c) Lessee has made such investigation as it deems
necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, (d) it is not relying on any representation as to the size of the Premises made by Brokers or Lessor,
(e) the square footage of the Premises was not material to Lessee’s decision to lease the Premises and pay the Rent stated herein, and (f) neither Lessor, Lessor’s agents, nor Brokers have made any oral or written representations
or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that: (i) Brokers have made no representations, promises or warranties concerning Lessee’s ability to honor the Lease or
suitability to occupy the Premises, and (ii) it is Lessor’s sole responsibility to investigate the financial capability and/or suitability of all proposed tenants. 
 2.5 Lessee as Prior Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of no force or effect if immediately prior to the Start Date, Lessee was the owner or occupant of the
Premises. In such event, Lessee shall be responsible for any necessary corrective work. 
 2.6 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 rent and use the number of parking spaces specified in Paragraph 1.2(b). at
the rental rate applicable from time to time for monthly parking as set by Lessor and/or its licensee. 
 (a) 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 rights 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. 

(b) The monthly rent per parking space specified in Paragraph 1.2(b) is subject to change upon 30 days prior written notice to
Lessee. The rent for the parking is payable one month in advance prior to the first day of each calendar month. 
 2.7
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 Project and interior utility raceways and installations within the
Premises that are provided and designated by the Lessor from time to time for the general nonexclusive use of Lessor, Lessee and other tenants of the Project and their respective employees, suppliers, shippers, customers, contractors and invitees,
including, but not limited to, common entrances, lobbies, corridors, stairwells, public restrooms, elevators, parking areas, loading and unloading areas, trash areas, roadways, walkways, driveways and landscaped areas. 

2.8 Common Areas - Lessee’s Rights. Lessor grants to Lessee, for the benefit of Lessee and its employees, suppliers,
shippers, contractors, customers and invitees, during the term of this Lease, the nonexclusive right to use, in common with others entitled to such use, the Common Areas as they exist from time to time, subject to any rights, powers, and privileges
reserved by Lessor under the terms hereof or under the terms of any rules and regulations or restrictions governing the use of the Project. Under no circumstances shall the right herein granted to use the Common Areas be deemed to include the right
to store any property, temporarily or permanently, in the Common Areas. Any such storage shall be permitted only by the prior written consent of Lessor or Lessor’s designated agent, which consent may be revoked at any time. In the event that
any unauthorized storage shall occur then Lessor shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove the property and charge the cost to Lessee, which cost shall be immediately payable upon
demand by Lessor. 
 2.9 Common Areas - Rules and Regulations. 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 adopt, modify, amend and enforce reasonable rules and regulations (“Rules and Regulations”) for the management, safety,
care, and cleanliness of the grounds, the parking and unloading of vehicles and the preservation of good order, as well as for the convenience of other occupants or tenants of the Building and the Project and their invitees. The Lessee agrees to
abide by and conform to all such Rules and Regulations, and shall use its best efforts to cause its employees, suppliers, shippers, customers, contractors and invitees to so abide and conform. Lessor shall not be responsible to Lessee for the
noncompliance with said Rules and Regulations by other tenants of the Project. 
 2.10 Common Areas - Changes. Lessor
shall have the right, in Lessor’s sole discretion, from time to time: 
 (a) To make changes to the Common Areas,
including, without limitation, changes in the location, size, shape and number of the lobbies, windows, stairways, air shafts, elevators, escalators, restrooms, driveways, entrances, parking spaces, parking areas, loading and unloading areas,
ingress, egress, direction of traffic, landscaped areas, walkways and utility raceways; 
 (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 outside the boundaries of the Project to be a part of the Common Areas; 
 (d) To add additional buildings and improvements
to the Common Areas; 
  

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 3 OF
18 








 (e) To use the Common Areas while engaged in making additional improvements, repairs or
alterations to the Project, or any portion thereof; and 
 (f) To do and perform such other acts and make such other changes in,
to or with respect to the Common Areas and Project as Lessor may, in the exercise of sound business judgment, deem to be appropriate. 
 3.
Term. 
 3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as specified in
Paragraph 1.3. 
 3.2 Early Possession. Any provision herein granting Lessee Early Possession of the Premises is subject
to and conditioned upon the Premises being available for such possession prior to the Commencement Date. Any grant of Early Possession only conveys a non-exclusive right to occupy the Premises. If Lessee totally or partially occupies the Premises
prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such Early Possession. All other terms of this Lease (including but not limited to the obligations to pay Lessee’s Share of the Operating Expense
Increase) shall be in effect during such period. Any such Early Possession shall not affect the Expiration Date. 
 3.3 Delay
In Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises to Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession by such date, Lessor shall
not be subject to any liability therefor, nor shall such failure affect the validity of this Lease. Lessee shall not, however, be obligated to pay Rent or perform its other obligations until Lessor delivers possession of the Premises and any period
of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by
the acts or omissions of Lessee. If possession is not delivered within 60 days after the Commencement Date, as the same may be extended under the terms of any Work Letter executed by Parties, Lessee may, at its option, by notice in writing within 10
days after the end of such 60 day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. If such written notice is not received by Lessor within said 10 day period, Lessee’s right to cancel
shall terminate. If possession of the Premises is not delivered within 120 days after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in writing. 

[SEE ADDENDUM PARAGRAPH 3.3(a)] 

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

4.1. Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit)
are deemed to be rent (“Rent”). 
 4.2 Operating Expense Increase. Lessee shall pay to Lessor during the
term hereof, in addition to the Base Rent, Lessee’s Share of the amount by which all Operating Expenses for each Comparison Year exceeds the amount of all Operating Expenses for the Base Year, such excess being hereinafter referred to as the
“Operating Expense Increase”, in accordance with the following provisions: 
 (a) “Base Year”
is as specified in Paragraph 1.9. 
 (b) “Comparison Year” is defined as each calendar year during the term of
this Lease subsequent to the Base Year; provided, however, Lessee shall have no obligation to pay a share of the Operating Expense Increase applicable to the first 12 months of the Lease Term (other than such as are mandated by a governmental
authority, as to which government mandated expenses Lessee shall pay Lessee’s Share, notwithstanding they occur during the first twelve (12) months). Lessee’s Share of the Operating Expense Increase for the first and last Comparison
Years of the Lease Term shall be prorated according to that portion of such Comparison Year as to which Lessee is responsible for a share of such increase. 
 (c) The following costs relating to the ownership and operation of the Project, calculated as if the Project was at least 95% occupied, are defined as “Operating Expenses”: 

(i) Costs relating to the operation, repair, and maintenance in neat, clean, safe, good order and condition, but not the replacement
(see subparagraph (g)), of the following: 
 (aa) The Common Areas, including their surfaces, coverings, decorative items,
carpets, drapes and window coverings, and including parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, stairways, parkways, driveways, landscaped areas, striping, bumpers, irrigation systems, Common Area lighting
facilities, building exteriors and roofs, fences and gates; 
 (bb) All heating, air conditioning, plumbing, electrical
systems, life safety equipment, communication systems and other equipment used in common by, or for the benefit of, tenants or occupants of the Project, including elevators and escalators, tenant directories, fire detection systems including
sprinkler system maintenance and repair. 
 (cc) All other areas and improvements that are within the exterior boundaries of
the Project but outside of the Premises and/or any other space occupied by a tenant. 
 (ii) The cost of trash disposal,
janitorial and security services, pest control services, and the costs of any environmental inspections; 
 (iii) The cost of
any other service to be provided by Lessor that is elsewhere in this Lease stated to be an “Operating Expense”; 

(iv) The cost of the premiums for the insurance policies maintained by Lessor pursuant to paragraph 8 and any deductible portion of an
insured loss concerning the Building or the Common Areas; 
 (v) The amount of the Real Property Taxes payable by Lessor
pursuant to paragraph 10; 
 (vi) The cost of water, sewer, gas, electricity, and other publicly mandated services not
separately metered; 
 (vii) Labor, salaries, and applicable fringe benefits and costs, materials, supplies and tools, used in
maintaining and/or cleaning the Project and accounting and management fees attributable to the operation of the Project; 

(viii) The cost of any capital improvement to the Building or the Project not covered under the provisions of Paragraph 2.3 provided;
however, that Lessor shall allocate the cost of any such capital improvement over a 12 year period and Lessee shall not be required to pay more than Lessee’s Share of 1/144th of the cost of such Capital Expenditure in any given month;

 (ix) The cost to replace equipment or improvements that have a useful life for accounting purposes of 5 years or less.

 (x) Reserves set aside for maintenance, repair and/or replacement of Common Area improvements and equipment. 

(d) Any item of Operating Expense that is specifically attributable to the Premises, the Building or to any other building in the

  

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 4 OF
18 








 
Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such Premises, Building, or other building. However, any such item that is not specifically
attributable to the Building or to any other building or to the operation, repair and maintenance thereof, shall be equitably allocated by Lessor to all buildings in the Project. 

(e) The inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(c) shall not be deemed to impose an
obligation upon Lessor to either have said improvements or facilities or to provide those services unless the Project already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or
some of them. 
 (f) Lessee’s Share of Operating Expense Increase is payable monthly on the same day as the Base Rent is
due hereunder. The amount of such payments shall be based on Lessor’s estimate of the Operating Expense Expenses. Within 60 days after written request (but not more than once each year) Lessor shall deliver to Lessee a reasonably detailed
statement showing Lessee’s Share of the actual Common Area Operating Expenses for the preceding year. If Lessee’s payments during such Year exceed Lessee’s Share, Lessee shall credit the amount of such over-payment against
Lessee’s future payments. If Lessee’s payments during such Year were less than Lessee’s Share, Lessee shall pay to Lessor the amount of the deficiency within 10 days after delivery by Lessor to Lessee of said statement. Lessor and
Lessee shall forthwith adjust between them by cash payment any balance determined to exist with respect to that portion of the last Comparison Year for which Lessee is responsible as to Operating Expense Increases, notwithstanding that the Lease
term may have terminated before the end of such Comparison Year. 
 (g) Operating Expenses shall not include the costs of
replacement for equipment or capital components such as the roof, foundations, exterior walls or a Common Area capital improvement, such as the parking lot paving, elevators, fences that have a useful life for accounting purposes of 5 years or more.

 (h) Operating Expenses shall not include any expenses paid by any tenant directly to third parties, or as to which Lessor is
otherwise reimbursed by any third party, other tenant, or by insurance proceeds. 
 [SEE PARAGRAPHS 4.2(h) AND 4.2(1) OF ADDENDUM] 

4.3 Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States on or before the day
on which it is due, without offset or deduction (except as specifically permitted in this Lease). All monetary amounts shall be rounded to the nearest whole dollar. In the event that any invoice prepared by Lessor is inaccurate such inaccuracy shall
not constitute a waiver and Lessee shall be obligated to pay the amount set forth in this Lease. Rent for any period during the term hereof which is for less than one full calendar month shall be prorated based upon the actual number of days of said
month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver
of Lessor’s rights to the balance of such Rent, regardless of Lessor’s endorsement of any check so stating. In the event that any check, draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee
agrees to pay to Lessor the sum of $25 in addition to any Late Charge and Lessor, at its option, may require all future Rent be paid by cashier’s check. Payments will be applied first to accrued late charges and attorney’s fees, second to
accrued interest, then to Base Rent and Common Area Operating Expenses, and any remaining amount to any other outstanding charges or costs. 

5. Security Deposit. Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessee’s faithful
performance of its obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount already due Lessor, for
Rents which will be due in the future, and/ or to reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of the Security Deposit,
Lessee shall within 10 days after written request therefor deposit monies with Lessor sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent Increases during the term of this Lease, Lessee shall, upon
written request from Lessor, deposit additional monies with Lessor so that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent.
Should the Agreed Use be amended to accommodate a material change in the business of Lessee or to accommodate a sublessee or assignee, Lessor shall have the right to increase the Security Deposit to the extent necessary, in Lessor’s reasonable
judgment, to account for any Increased wear and tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs during this Lease and following such change the financial condition of Lessee is, in Lessor’s
reasonable judgment, significantly reduced, Lessee shall deposit such additional monies with Lessor as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on such change in financial condition. Lessor
shall not be required to keep the Security Deposit separate from its general accounts. Within 90 days after the expiration or termination of this Lease, Lessor shall return that portion of the Security Deposit not used or applied by Lessor. No part
of the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment for any monies to be paid by Lessee under this Lease. 
 6. Use. 
 6.1 Use. Lessee shall use and occupy the Premises only for
the Agreed Use, or any other legal use which is reasonably comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs
occupants of or causes damage to neighboring premises or properties. Other than guide, signal and seeing eye dogs, Lessee shall not keep or allow in the Premises any pets, animals, birds, fish, or reptiles. Lessor shall not unreasonably withhold or
delay its consent to any written request for a modification of the Agreed Use, so long as the same will not impair the structural integrity of the improvements of the Building, will not adversely affect the mechanical, electrical, HVAC, and other
systems of the Building, and/or will not affect the exterior appearance of the Building. If Lessor elects to withhold consent, Lessor shall within 7 days after such request give written notification of same, which notice shall include an explanation
of Lessor’s objections to the change in the Agreed Use. 
 6.2 Hazardous Substances. 

(a) Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease shall mean any product,
substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to the public health,
safety or welfare, the environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable statute or
common law theory but shall not Include Common Materials as defined herein. Hazardous Substances shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, byproducts or fractions thereof. Lessee shall
not engage in any activity in or on the Premises which constitutes a Reportable Use of Hazardous Substances without the express prior written consent of Lessor and timely compliance (at Lessee’s expense) with all Applicable Requirements.
“Reportable Use” shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit
from, or with respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority, and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which any Applicable
Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing, Lessee may use any ordinary and customary materials reasonably required to be used in the normal
course of the Agreed Use such as ordinary office supplies (copier toner, liquid paper, glue, etc.) and common household cleaning 
  

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 5 OF
18 








 
materials, so long as such use is in compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of
contamination or damage or expose Lessor to any liability therefor (such materials being “Common Materials”). In addition, Lessor may condition its consent to any Reportable Use upon receiving such additional assurances as Lessor
reasonably deems necessary to protect itself, the public, the Premises and/or the environment against damage, contamination, injury and/or liability, including, but not limited to, the installation (and removal on or before Lease expiration or
termination) of protective modifications (such as concrete encasements) and/or increasing the Security Deposit. 
 (b) Duty
to Inform Lessor. If Lessee knows, or has reasonable cause to believe, that a Hazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written
notice of such fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation which it has concerning the presence of such Hazardous Substance. 

(c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about
the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee’s expense, comply with all Applicable Requirements and take all investigatory and/or remedial action reasonably recommended, whether or not
formally ordered or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or
involving any Hazardous Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third party. 
 (d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground lessor, if any, harmless from and against any and all loss of rents and/or
damages, liabilities, judgments, claims, expenses, penalties, and attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance brought onto the Premises by or for Lessee, or any third party (provided, however, that
Lessee shall have no liability under this Lease with respect to underground migration of any Hazardous Substance under the Premises from areas outside of the Project not caused or contributed to by Lessee). Lessee’s obligations shall include,
but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the
expiration or termination of this Lease. No termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect to Hazardous Substances, unless specifically so
agreed by Lessor in writing at the time of such agreement. 
 (e) Lessor Indemnification. Lessor and its successors and
assigns shall indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the cost of remediation, which result from Hazardous Substances not previously disclosed to
Lessee which existed on the Premises prior to Lessee’s occupancy or which are brought onto the Premises by Lessor or which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees. Lessor’s obligations,
as and when required by the Applicable Requirements, shall include, but not be limited to, the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. 

(f) Investigations and Remediations. Lessor shall retain the responsibility and pay for any investigations or remediation measures
required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to Lessee’s occupancy, unless such remediation measure is required as a result of Lessee’s use (including
“Alterations”, as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing Lessor and
Lessor’s agents to have reasonable access to the Premises at reasonable times in order to carry out Lessor’s investigative and remedial responsibilities. 
 (g) Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee
shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall continue in full force and effect, but subject to Lessor’s rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at
Lessor’s option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue in full force and effect, or
(ii) if the estimated cost to remediate such condition exceeds 12 times the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence of such
Hazardous Substance Condition, of Lessor’s desire to terminate this Lease as of the date 60 days following the date of such notice. In the event Lessor elects to give a termination notice, Lessee may, within 10 days thereafter, give written
notice to Lessor of Lessee’s commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall
provide Lessor with said funds or satisfactory assurance thereof within 30 days following such commitment. In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably
possible after the required funds are available. If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessor’s notice of
termination. 
 6.3 Lessee’s Compliance with Applicable Requirements. Except as otherwise provided in this Lease,
Lessee shall, at Lessee’s sole expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of
Lessor’s engineers and/or consultants which relate in any manner to the Premises, without regard to whether said requirements are now in effect or become effective after the Start Date. Lessee shall, within 10 days after receipt of
Lessor’s written request, provide Lessor with copies of all permits and other documents, and other information evidencing Lessee’s compliance with any Applicable Requirements specified by Lessor, and shall immediately upon receipt, notify
Lessor in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable Requirements.
Likewise, Lessee shall immediately give written notice to Lessor of: (i) any water damage to the Premises and any suspected seepage, pooling, dampness or other condition conducive to the production of mold; or (ii) any mustiness or other
odors that might indicate the presence of mold in the Premises. 
 6.4 Inspection; Compliance. Lessor and Lessor’s
“Lender” (as defined in Paragraph 30) and consultants shall have the right to enter into Premises at any time, in the case of an emergency, and otherwise at reasonable times, after reasonable notice, for the purpose of inspecting
the condition of the Premises and for verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a material violation of Applicable Requirements, or a Hazardous Substance Condition (see paragraph
9.1e) is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspection, so long as such inspection is reasonably related
to the violation or contamination. In addition, Lessee shall provide copies of all relevant material safety data sheets (MSDS) to Lessor within 10 days of the receipt of written request therefor. 

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

7.1 Lessee’s Obligations. Notwithstanding Lessor’s obligations to keep the Premises in good condition and
repair In Paragraph 7.2, Lessee shall be responsible for payment of the cost thereof to Lessor as additional rent for that portion of the cost of any maintenance and repair of the 

 

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 6 OF
18 








 
Premises, or any equipment (wherever located) that serves only Lessee or the Premises, to the extent such cost is attributable to abuse or misuse. Lessee shall be responsible for the cost of
painting, repairing or replacing wall coverings, and to repair or replace any improvements within the Premises. 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. 
 7.2 Lessor’s Obligations. Subject to the provisions of
Paragraphs 2.2 (Condition), 2.3 (Compliance), 4.2 (Operating Expenses), 6 (Use), 7.1 (Lessee’s Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessor, subject to reimbursement pursuant to Paragraph 4.2, shall keep in good order,
condition and repair the foundations, exterior walls, structural condition of interior bearing walls, exterior roof, fire sprinkler system, fire alarm and/or smoke detection systems, fire hydrants, and the Common Areas. Lessee expressly waives the
benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms of this Lease. 
 7.3
Utility Installations; Trade Fixtures; Alterations. 
 (a) Definitions. The term “Utility
Installations” refers to all floor and window coverings, air lines, vacuum lines, power panels, electrical distribution, security and fire protection systems, communication cabling, lighting fixtures, HVAC equipment, and plumbing in or on
the Premises. The term “Trade Fixtures” shall mean Lessee’s machinery and equipment that can be removed without doing material damage to the Premises. The term “ Alterations” shall mean any modification of the
improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion. “Lessee Owned Alterations and/or Utility Installations” are defined as Alterations and/or Utility Installations made by Lessee that
are not yet owned by Lessor pursuant to Paragraph 7.4(a). 
 (b) Consent. Lessee shall not make any Alterations or
Utility Installations to the Premises without Lessor’s prior written consent. Lessee may, however, make non-structural Alterations or Utility Installations to the interior of the Premises (excluding the roof) without such consent but upon
notice to Lessor, as long as they are not visible from the outside, do not involve puncturing, relocating or removing the roof, ceilings, floors or any existing walls, will not affect the electrical, plumbing, HVAC, and/or life safety systems, and
the cumulative cost thereof during this Lease as extended does not exceed $2000. Notwithstanding the foregoing, Lessee shall not make or permit any roof penetrations and/or install anything on the roof without the prior written approval of Lessor.
Lessor may, as a precondition to granting such approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations or Utility Installations that Lessee shall desire to make and which require the consent of the Lessor
shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee’s: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor with copies of both the permits and the
plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt and expeditious manner. Any Alterations or Utility Installations shall be
performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with asbuilt plans and specifications. For work which costs an amount in excess of one month’s Base Rent, Lessor may
condition its consent upon Lessee providing a lien and completion bond in an amount equal to 150% of the estimated cost of such Alteration or Utility Installation and/or upon Lessee’s posting an additional Security Deposit with Lessor.

 (c) Liens; Bonds. Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been
furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic’s or materialmen’s lien against the Premises or any interest therein. Lessee shall give Lessor not less than 10 days notice prior
to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim or demand, then Lessee shall, at its sole expense
defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof. If Lessor shall require, Lessee shall furnish a surety bond in an
amount equal to 150% of the amount of such contested lien, claim or demand, indemnifying Lessor against liability for the same. If Lessor elects to participate in any such action, Lessee shall pay Lessor’s attorneys’ fees and costs.

 7.4 Ownership; Removal; Surrender; and Restoration. 

(a) Ownership. Subject to Lessor’s right to require removal or elect ownership as hereinafter provided, all Alterations and
Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility
Installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the
Premises. 
 (b) Removal. By delivery to Lessee of written notice from Lessor not earlier than 90 and not later than 30
days prior to the end of the term of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration or termination of this Lease. Lessor may require the removal at any time of all or any
part of any Lessee Owned Alterations or Utility Installations made without the required consent. Lessor shall notify Lessee at the time of approval whether the Improvements will be required to be removed by Lessee at the expiration or termination of
this Lease. 
 (c) Surrender; Restoration. Lessee shall surrender the Premises by the Expiration Date or any earlier
termination date, with all of the improvements, parts and surfaces thereof clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. “Ordinary wear and tear” shall not include
any damage or deterioration that would have been prevented by good maintenance practice. Notwithstanding the foregoing, if this Lease is for 12 months or less, then Lessee shall surrender the Premises in the same condition as delivered to Lessee on
the Start Date with NO allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee owned Alterations and/or Utility Installations, furnishings, and equipment
as well as the removal of any storage tank installed by or for Lessee. Lessee shall also completely remove from the Premises any and all Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances
which were deposited via underground migration from areas outside of the Premises) even if such removal would require Lessee to perform or pay for work that exceeds statutory requirements. Trade Fixtures shall remain the property of Lessee and shall
be removed by Lessee. Any personal property of Lessee not removed on or before the Expiration Date or any earlier termination date shall be deemed to have been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may desire.
The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below. 

8. Insurance; Indemnity. 

8.1 Insurance Premiums. The cost of the premiums for the insurance policies maintained by Lessor pursuant to paragraph 8 are
included as Operating Expenses (see paragraph 4.2 (c)(iv)). Said costs shall Include increases in the premiums resulting from additional coverage related to requirements of the holder of a mortgage or deed of trust covering the Premises, Building
and/or Project, increased valuation of the Premises, Building and/or Project, and/or a general premium rate increase. Said costs shall not, however, include any premium increases resulting from the nature of the occupancy of any other tenant of the
Building. If the Project was not insured for the entirety of the Base Year, then the base premium shall be the lowest annual premium reasonably obtainable for the required insurance as of the Start Date, assuming the most nominal use possible of the
Building and/or Project. In no event, however, shall Lessee be responsible for any portion of the premium cost attributable to liability insurance 
  

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 7 OF
18 








 
coverage in excess of $2,000,000 procured under Paragraph 8.2(b). 
 8.2
Liability Insurance. 
 (a) Carried by Lessee. Lessee shall obtain and keep in force a Commercial General
Liability policy of insurance protecting Lessee and Lessor as an additional insured against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of the Premises and
all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $1,000,000 per occurrence with an annual aggregate of not less than $2,000,000. Lessee shall add Lessor as an
additional insured by means of an endorsement at least as broad as the Insurance Service Organization’s “Additional Insured-Managers or Lessors of Premises” Endorsement and coverage shall also be extended to include damage caused by
heat, smoke or fumes from a hostile fire. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an “insured
contract” for the performance of Lessee’s indemnity obligations under this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder. Lessee shall provide an
endorsement on its liability policy(ies) which provides that its insurance shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only. 

(b) Carried by Lessor. Lessor shall maintain liability insurance as described in Paragraph 8.2(a), in addition to, and not in lieu
of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein. 
 8.3
Property Insurance - Building, Improvements and Rental Value. 
 (a) Building and Improvements. Lessor shall
obtain and keep in force a policy or policies of insurance in the name of Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage to the Building and/or Project. The amount of such insurance shall be equal
to the full insurable replacement cost of the Building and/or Project, as the same shall exist from time to time, or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable value thereof.
Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee’s personal property shall be insured by Lessee not by Lessor. If the coverage is available and commercially appropriate, such policy or policies shall insure against
all risks of direct physical loss or damage (except the perils of flood and/or earthquake unless required by a Lender), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition,
reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation, and inflation guard
protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located.
If such insurance coverage has a deductible clause, the deductible amount shall not exceed $5,000 per occurrence. 
 (b)
Rental Value. Lessor shall also obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one year with an extended period of indemnity for an
additional 180 days (“Rental Value insurance”). Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent
otherwise payable by Lessee, for the next 12 month period. 
 (c) Adjacent Premises. Lessee shall pay for any increase in
the premiums for the property insurance of the Building and for the Common Areas or other buildings in the Project if said increase is caused by Lessee’s acts, omissions, use or occupancy of the Premises. 

(d) Lessee’s Improvements. Since Lessor is the Insuring Party, Lessor shall not be required to insure Lessee Owned
Alterations and Utility Installations unless the item in question has become the property of Lessor under the terms of this Lease. 
 8.4 Lessee’s Property; Business Interruption Insurance; Worker’s Compensation Insurance. 
 (a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee’s personal property, Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such
insurance shall be full replacement cost coverage with a deductible of not to exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of personal property, Trade Fixtures and Lessee Owned
Alterations and Utility Installations. Lessee shall provide Lessor with written evidence that such insurance is in force. 
 (b)
Worker’s Compensation Insurance. Lessee shall obtain and maintain Worker’s Compensation Insurance in such amount as may be required by Applicable Requirements. 

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

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

8.5 Insurance Policies. Insurance required herein shall be by companies maintaining during the policy term a “General
Policyholders Rating” of at least A-, VII, as set forth in the most current issue of “Best’s Insurance Guide”, or such other rating as may be required by a Lender. Lessee shall not do or permit to be done anything which
invalidates the required insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of such insurance or certificates with copies of the required endorsements evidencing the existence and amounts of the
required insurance. No such policy shall be cancelable or subject to modification except after 10 days prior written notice to Lessor. Lessee shall, at least 30 days prior to the expiration of such policies, furnish Lessor with evidence of renewals
or “insurance binders” evidencing renewal thereof, or Lessor may order such insurance and charge the cost thereof to Lessee, which amount shall be payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one
year, or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to procure and maintain the insurance required to be carried by it, the other Party may, but shall not be required to, procure and maintain the
same. 
 8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor each hereby release
and relieve the other, and waive their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perils required to be insured against herein. The effect of such releases and waivers
is not limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation that such companies may have against
Lessor or Lessee, as the case may be, so long as the insurance is not invalidated thereby. 
 8.7 Indemnity. Except for
Lessor’s gross negligence or willful misconduct, Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and its agents, Lessor’s master or ground lessor, partners and Lenders, from and against any and all claims,
loss of rents and/or damages, liens, judgments, penalties, attorneys’ and consultants’ fees, expenses and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Lessee. If any action or
proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessee’s expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense.
Lessor need not have first paid any such claim in order to be defended or indemnified. 
 8.8 Exemption of Lessor and its
Agents from Liability. Notwithstanding the negligence or breach of this Lease byExcept as may result from any grossly negligent or willful misconduct of Lessor or its agents, neither Lessor nor its agents shall be liable under
any circumstances for: (i) 
  

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 8 OF
18 








 
injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee’s employees, contractors, invitees, customers, or any other person in or about the Premises,
whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, indoor air quality, the presence of mold or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires,
appliances, plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon other portions of the Building, or from other sources or places, (ii) any
damages arising from any act or neglect of any other tenant of Lessor or from the failure of Lessor or its agents to enforce the provisions of any other lease in the Project, or (iii) injury to Lessee’s business or for any loss of income
or profit therefrom. Instead, it is intended that Lessee’s sole recourse in the event of such damages or injury be to file a claim on the insurance policy(ies) that Lessee is required to maintain pursuant to the provisions of paragraph 8.
Lessor shall be responsible for its grossly negligent acts or omissions or willful misconduct. 
 8.9 Failure to
Provide Insurance. Lessee acknowledges that any failure on its part to obtain or maintain the insurance required herein will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which
will be extremely difficult to ascertain. Accordingly, for any month or portion thereof that Lessee does not maintain the required insurance and/or does not provide Lessor with the required binders or certificates evidencing the existence of the
required insurance, the Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater. The parties agree that such increase in Base
Rent represents fair and reasonable compensation for the additional risk/costs that Lessor will incur by reason of Lessee’s failure to maintain the required insurance. Such increase in Base Rent shall in no event constitute a waiver of
Lessee’s Default or Breach with respect to the failure to maintain such insurance, prevent the exercise of any of the other rights and remedies granted hereunder, nor relieve Lessee of its obligation to maintain the insurance specified in this
Lease. 
 9. Damage or Destruction. 
 9.1 Definitions. 
 (a) “Premises Partial Damage” shall
mean damage or destruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 3 months or less from the date of the damage or destruction, and the cost thereof does
not exceed a sum equal to 6 month’s Base Rent. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total. 

(b) “Premises Total Destruction” shall mean damage or destruction to the improvements on the Premises, other than Lessee
Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in 3 months or less from the date of the damage or destruction and/or the cost thereof exceeds a sum equal to 6 month’s Base Rent. Lessor shall
notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total. 
 (c) “Insured Loss” shall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by
an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved. 
 (d) “Replacement Cost” shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto,
including demolition, debris removal and upgrading required by the operation of Applicable Requirements, and without deduction for depreciation. 
 (e) “Hazardous Substance Condition” shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance, in, on, or under the
Premises which requires restoration. 
 9.2 Partial Damage - Insured Loss. If a Premises Partial Damage that is an
Insured Loss occurs, then Lessor shall, at Lessor’s expense, repair such damage (but not Lessee’s Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue in full
force and effect; provided, however, that Lessee shall, at Lessor’s election, make the repair of any damage or destruction the total cost to repair of which is $5,000 or less, and, in such event, Lessor shall make any applicable insurance
proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall promptly
contribute the shortage in proceeds as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was not
commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, or adequate
assurance thereof, within 10 days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within said 10 day period, the party responsible for making the repairs shall
complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not received, Lessor may nevertheless elect by written notice to Lessee within 10 days thereafter to: (i) make
such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain in full force and effect, or (ii) have this Lease terminate 30 days thereafter. Lessee shall not be
entitled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance coverage,
but the net proceeds of any such insurance shall be made available for the repairs if made by either Party. 
 9.3 Partial
Damage - Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee’s expense), Lessor may either:
(i) repair such damage as soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt
by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective 60 days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of
the termination notice to give written notice to Lessor of Lessee’s commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days
after making such commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the required funds are available. If Lessee does not make the required
commitment, this Lease shall terminate as of the date specified in the termination notice. 
 9.4 Total Destruction.
Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate 60 days following such Destruction. If the damage or destruction was caused by the gross negligence or willful misconduct of Lessee,
Lessor shall have the right to recover Lessor’s damages from Lessee, except as provided in Paragraph 8.6. 
 9.5 Damage
Near End of Term. If at any time during the last 6 months of this Lease there is damage for which the cost to repair exceeds one month’s Base Rent, whether or not an Insured Loss, Lessor or Lessee may terminate this Lease effective 60 days
following the date of occurrence of such damage by giving a written termination notice to the other party Lessee within 30 days after the date of occurrence of such damage. Notwithstanding the foregoing, if Lessor provides a written
termination notice, and if Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may preserve this Lease by, (a) exercising such option and (b) providing Lessor with any shortage in
insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of (i) the date which is 10 days after Lessee’s receipt of Lessor’s written notice purporting to terminate this Lease, or
(ii) the day prior to the date upon which such option expires. If Lessee duly exercises such 
  

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 9 OF
18 








 
option during such period and provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor’s commercially reasonable
expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force and effect. If Lessee fails to exercise such option and provide such funds or assurance during such period, then this Lease shall terminate on the
date specified in the termination notice and Lessee’s option shall be extinguished. 
 9.6 Abatement of Rent;
Lessee’s Remedies. 
 (a) Abatement. In the event of Premises Partial Damage or Premises Total Destruction or a
Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which
Lessee’s use of the Premises is impaired, but not to exceed the proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability for any such damage,
destruction, remediation, repair or restoration except as provided herein. 
 (b) Remedies. If Lessor is obligated to
repair or restore the Premises and does not commence, in a substantial and meaningful way, such repair or restoration within 90 days after such obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or restoration,
give written notice to Lessor and to any Lenders of which Lessee has actual notice, of Lessee’s election to terminate this Lease on a date not less than 60 days following the giving of such notice. If Lessee gives such notice and such repair or
restoration is not commenced within 30 days thereafter, this Lease shall terminate as of the date specified in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full force and effect.
“Commence” shall mean either the unconditional authorization of the preparation of the required plans, or the beginning of the actual work on the Premises, whichever first occurs. 

9.7 Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable
adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee’s Security Deposit as has not been, or is not then required to be, used
by Lessor. 
 10. Real Property Taxes. 
 10.1 Definitions. As used herein, the term “Real Property Taxes” shall include any form of assessment; real estate, general, special, ordinary or extraordinary, or rental levy or
tax (other than inheritance, personal income or estate taxes); improvement bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the Project, Lessor’s right to other income therefrom, and/or
Lessor’s business of leasing, by any authority having the direct or indirect power to tax and where the funds are generated with reference to the Project address and where the proceeds so generated are to be applied by the city, county or other
local taxing authority of a jurisdiction within which the Project is located. “Real Property Taxes” shall also include any tax, fee, levy, assessment or charge, or any increase therein: (i) imposed by reason of events occurring
during the term of this Lease, including but not limited to, a change in the ownership of the Project, (ii) a change in the improvements thereon, and/or (iii) levied or assessed on machinery or equipment provided by Lessor to Lessee
pursuant to this Lease. 
 10.2 Payment of Taxes. Except as otherwise provided in Paragraph 10.3, Lessor shall pay the
Real Property Taxes applicable to the Project, and said payments shall be included in the calculation of Operating Expenses in accordance with the provisions of Paragraph 4.2. 
 10.3 Additional Improvements. Operating Expenses shall not include Real Property Taxes specified in the tax assessor’s records and work sheets as being caused by additional improvements placed
upon the Project by other lessees or by Lessor for the exclusive enjoyment of such other lessees. Notwithstanding Paragraph 10.2 hereof, Lessee shall, however, pay to Lessor at the time Operating Expenses are payable under Paragraph 4.2, the
entirety of any increase in Real Property Taxes if assessed solely by reason of Alterations, Trade Fixtures or Utility Installations, other than the Tenant Improvements constructed pursuant to the Work Letter, placed upon the Premises by Lessee or
at Lessee’s request or by reason of any alterations or improvements to the Premises made by Lessor subsequent to the execution of this Lease by the Parties. 
 10.4 Joint Assessment. If the Building is not separately assessed, Real Property Taxes allocated to the Building shall be an equitable proportion of the Real Property Taxes for all of the land and
improvements included within the tax parcel assessed, such proportion to be determined by Lessor from the respective valuations assigned in the assessor’s work sheets or such other information as may be reasonably available. Lessor’s
reasonable determination thereof, in good faith, shall be conclusive. 
 10.5 Personal Property Taxes. Lessee shall pay
prior to delinquency all taxes assessed against and levied upon Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee contained in the Premises. When possible, Lessee shall
cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all other personal’ property to be assessed and billed separately from the real property of Lessor. If any of Lessee’s said property
shall be assessed with Lessor’s real property, Lessee shall pay Lessor the taxes attributable to Lessee’s property within 10 days after receipt of a written statement setting forth the taxes applicable to Lessee’s property.

 11. Utilities and Services. 
 11.1 Services Provided by Lessor. Lessor shall provide heating, ventilation, air conditioning, reasonable amounts of electricity for normal lighting and office machines, water for reasonable and
normal drinking and lavatory use in connection with an office, and replacement light bulbs and/or fluorescent tubes and ballasts for standard overhead fixtures. Lessor shall also provide janitorial services to the Premises and Common Areas 5 times
per week, excluding Building Holidays, or pursuant to the attached janitorial schedule, if any. Lessor shall not, however, be required to provide janitorial services to kitchens or storage areas included within the Premises; except, however, that
Lessor shall provide trash pickup services to the kitchen areas. 
 11.2 Services Exclusive to Lessee. Lessee shall pay
for all water, gas, light, 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. If a service is deleted by Paragraph 1.13 and
such service is not separately metered to the Premises, Lessee shall pay at Lessor’s option, either Lessee’s Share or a reasonable proportion to be determined by Lessor of all charges for such jointly metered service. 

11.3 Hours of Service. Said services and utilities shall be provided during times set forth in Paragraph 1.12. Utilities and
services required at other times shall be subject to advance request and reimbursement by Lessee to Lessor of the cost thereof. 

11.4 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 and trash services,
over standard office usage for the Project. Lessor shall require Lessee to reimburse Lessor for 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 metering applicable to Lessee’s excess usage or loading. 
 11.5
Interruptions. There shall be no abatement of rent and Lessor shall not be liable in any respect whatsoever for the inadequacy, stoppage, interruption 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. 

 

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 10 OF
18 








 (a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or
encumber (collectively, “assign or assignment”) or sublet all or any part of Lessee’s interest in this Lease or in the Premises without Lessor’s prior written consent which consent shall not be unreasonably withheld.

 (b) [SEE ADDENDUM PARAGRAPH 12.1(b)] Unless Lessee is a corporation and its stock is publicly traded on a national
stock exchange, a change in the control of Lessee shall constitute an assignment requiring consent. The transfer, on a cumulative basis, of 25% or more of the voting control of Lessee shall constitute a change in control for this purpose.

 (c) The involvement of Lessee or its assets in any transaction, or series of transactions (by way of merger, sale,
acquisition, financing, transfer, leveraged buyout or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee’s assets occurs, which results or will result in a reduction of the Net Worth of Lessee by an amount
greater than 25% of such Net Worth as it was represented at the time of the execution of this Lease or at the time of the most recent assignment to which Lessor has consented, or as it exists immediately prior to said transaction or transactions
constituting such reduction, whichever was or is greater, shall be considered an assignment of this Lease for which Lessee’s consent Is required and to which Lessor may withhold its consent. “Net Worth of Lessee” shall mean the
net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles. 
 (d) Except for
transfers which comply with Paragraphs 12.1(b) and (c), an An assignment or subletting without consent shall, at Lessor’s option, be a Default curable after notice per Paragraph 13.1(c), or a noncurable Breach without the
necessity of any notice and grace period. If Lessor elects to treat such unapproved assignment or subletting as a noncurable Breach, Lessor may either: (i) terminate this Lease, or (ii) upon 30 days written notice, increase the monthly
Base Rent to 110% of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held by Lessee shall be subject to similar adjustment to 110% of the
price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the Lease term shall be increased to 110% of the scheduled adjusted rent. 

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

 (f) Lessor may reasonably withhold consent to a proposed assignment or subletting if Lessee is in Default at the time consent
is requested. 
 (g) Notwithstanding the foregoing, allowing a de minimis portion of the Premises, i e. 20 square feet or less,
to be used by a third party vendor in connection with the installation of a vending machine or payphone shall not constitute a subletting. 
 12.2 Terms and Conditions Applicable to Assignment and Subletting. 
 (a)
Regardless of Lessor’s consent, no assignment or subletting shall: (i) be effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any
obligations hereunder, or (iii) alter the primary liability of Lessee for the payment of Rent or for the performance of any other obligations to be performed by Lessee. 
 (b) Lessor may accept Rent or performance of Lessee’s obligations from any person other than Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or disapproval of
such assignment nor the acceptance of Rent or performance shall constitute a waiver or estoppel of Lessor’s right to exercise its remedies for Lessee’s Default or Breach. 

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

 (d) In the event of any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone
else responsible for the performance of Lessee’s obligations under this Lease, including any assignee or sublessee, without first exhausting Lessor’s remedies against any other person or entity responsible therefore to Lessor, or any
security held by Lessor. 
 (e) Each request for consent to an assignment or subletting shall be in writing, accompanied by
information relevant to Lessor’s determination as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modification of the
Premises, if any, together with a fee of $500 as consideration for Lessor’s considering and processing said request. Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested.
(See also Paragraph 36) 
 (f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment,
entering into such sublease, or entering into possession of the Premises or any portion thereof, be deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or
performed by Lessee during the term of said assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing. 

(g) Lessor’s consent to any assignment or subletting shall not transfer to the assignee or sublessee any Option granted to the
original Lessee by this Lease unless such transfer is specifically consented to by Lessor in writing. (See Paragraph 39.2) 

12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any subletting by
Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein: 
 (a) Lessee hereby assigns and transfers to Lessor all of Lessee’s interest in all Rent payable on any sublease, and Lessor may collect such Rent and apply same toward Lessee’s obligations under
this Lease; provided, however, that until a Breach shall occur in the performance of Lessee’s obligations, Lessee may collect said Rent. In the event that the amount collected by Lessor exceeds Lessee’s then outstanding obligations any
such excess shall be refunded to Lessee. Lessor shall not, by reason of the foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply with
any of Lessee’s obligations to such sublessee. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee’s obligations under
this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach exists,
notwithstanding any claim from Lessee to the contrary. 
 (b) In the event of a Breach by Lessee, Lessor may, at its option,
require sublessee to attorn to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided, however, Lessor shall not be
liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor. 
 (c) Any matter requiring the consent of the sublessor under a sublease shall also require the consent of Lessor. 
 (d) No sublessee shall further assign or sublet all or any part of the Premises without Lessor’s prior written consent. 
 (e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee within the grace period, if any, specified in such
notice. The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee. 

13. Default; Breach; Remedies. 
 13.1 Default; Breach. A “Default” is defined as a failure by the Lessee to comply with or perform any of the terms, covenants, conditions or Rules and Regulations under this Lease.
A “Breach” is defined as the occurrence of one or more of the following Defaults, and the failure 
  


					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 11 OF
18 








 
of Lessee to cure such Default within any applicable grace period: 
 (a)
The abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of security, or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without
providing reasonable assurances to minimize potential vandalism. 
 (b) The failure of Lessee to make any payment of Rent or any
Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation under this Lease which endangers or threatens life or
property, where such failure continues for a period of 3 business days following written notice to Lessee. THE ACCEPTANCE BY LESSOR OF A PARTIAL PAYMENT OF RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE A WAIVER OF ANY OF LESSOR’S RIGHTS,
INCLUDING LESSOR’S RIGHT TO RECOVER POSSESSION OF THE PREMISES. 
 (c) The failure of Lessee to allow Lessor and/or its
agents access to the Premises or the commission of waste, act or acts constituting public or private nuisance, and/or an illegal activity on the Premises by Lessee, where such actions continue for a period of 3 business days following written notice
to Lessee. 
 (d) The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable
Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate or financial statements, (v) a requested subordination, (vi) evidence concerning any
guaranty and/or Guarantor, (vii) any document requested under Paragraph 41, (viii) material data safety sheets (MSDS), or (ix) any other documentation or information which Lessor may reasonably require of Lessee under the terms of
this Lease, where any such failure continues for a period of 10 days following written notice to Lessee. 
 (e) A Default by
Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph 2.9 hereof, other than those described in subparagraphs 13.1(a), (b) or (c), above, where such Default continues for a period of
30 days after written notice; provided, however, that if the nature of Lessee’s Default is such that more than 30 days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30
day period and thereafter diligently prosecutes such cure to completion. 
 (f) The occurrence of any of the following events:
(i) the making of any general arrangement or assignment for the benefit of creditors; (ii) becoming a “debtor” as defined in 11 U.S.C. § 101 or any successor statute thereto (unless, in the case of a petition filed
against Lessee, the same is dismissed within 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 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 30 days; provided, however, in the event that any provision of this subparagraph is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions.

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

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

13.2 Remedies. If Lessee fails to perform any of its affirmative duties or obligations, within 10 days after written notice (or in
case of an emergency, without notice), Lessor may, at its option, perform such duty or obligation on Lessee’s behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits
or approvals. Lessee shall pay to Lessor an amount equal to 115 105% of the costs and expenses incurred by Lessor in such performance upon receipt of an invoice therefor. In the event of a Breach, Lessor may, with or without further notice or
demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach: 

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

(c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises are
located. The expiration or termination of this Lease and/or the termination of Lessee’s right to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term
hereof or by reason of Lessee’s occupancy of the Premises. 
 13.3 Inducement Recapture. Any agreement for
free or abated rent or other charges, or for the giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessee’s entering into this Lease, all of which concessions are hereinafter referred to as
“Inducement Provisions”, shall be deemed conditioned upon Lessee’s full and faithful performance of all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision
shall automatically be deemed deleted from this Lease and of no further force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an

  

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 12 OF
18 








 
Inducement Provision shall be immediately due and payable by Lessee to Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by Lessor of rent or the cure
of the Breach which initiated the operation of this paragraph shall not be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in writing by Lessor at the time of such acceptance. 

13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not
contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Lessor by any Lender.
Accordingly, if any Rent shall not be received by Lessor within 5 days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall immediately pay to Lessor a one-time late charge equal to 10% of each such
overdue amount or $100, whichever is greater. The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of such late payment. Acceptance of such late charge by Lessor shall in
no event constitute a waiver of Lessee’s Default or Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted hereunder. In the event that a late charge is payable hereunder, whether or
not collected, for 3 consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor’s option, become due and payable quarterly in advance. 

13.5 Interest. Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when within five
(5) days after such amount shall be due as to scheduled payments (such as Base Rent) or within 30 days following the date on which it was due for nonscheduled payment, shall bear interest from the date when due, as to scheduled payments, or the
31st day after it was due as to nonscheduled payments. The interest (“Interest”) charged shall be computed at the rate of 10% per annum but shall not exceed the maximum rate allowed by law. Interest is payable in addition to
the potential late charge provided for in Paragraph 13.4. 
 13.6 Breach by Lessor. 

(a) Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to perform
an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by Lessor, and any Lender whose name and address shall have been furnished Lessee in writing for
such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessor’s obligation is such that more than 30 days are reasonably required for its performance, then
Lessor shall not be in breach if performance is commenced within such 30 day period and thereafter diligently pursued to completion. 
 (b) Performance by Lessee on Behalf of Lessor. In the event that neither Lessor nor Lender cures said breach within 30 days after receipt of said notice, or if having commenced said cure they do
not diligently pursue it to completion, then Lessee may elect to cure said breach at Lessee’s expense and offset from Rent the actual and reasonable cost to perform such cure, provided however, that such offset shall not exceed an amount equal
to the greater of one month’s Base Rent or the Security Deposit, reserving Lessee’s right to seek reimbursement from Lessor for any such expense in excess of such offset. Lessee shall document the cost of said cure and supply said
documentation to Lessor. 
 14. Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold
under the threat of the exercise of said power (collectively “Condemnation”), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than
10% of the rentable floor area of the Premises, or more than 25% of Lessee’s Reserved Parking Spaces, if any, are taken by Condemnation, Lessee may, at Lessee’s option, to be exercised in writing within 10 days after Lessor shall have
given Lessee written notice of such taking (or in the absence of such notice, within 10 days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee
does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the
Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold, the value of the part taken, or for severance
damages; provided, however, that Lessee shall be entitled to any compensation paid by the condemnor for Lessee’s relocation expenses, loss of business goodwill and/or Trade Fixtures, without regard to whether or not this Lease is terminated
pursuant to the provisions of this Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all
compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such Condemnation. 

15. Brokerage Fees. 

15.1 Additional Commission. If a separate brokerage fee agreement is attached then in addition to the payments owed
pursuant to Paragraph 1.10 above, and unless Lessor and the Brokers otherwise agree in writing, Lessor agrees that: (a) if Lessee exorcises any Option, (b) if Lessee or anyone affiliated with Lessee acquires from Lessor any rights to the
Premises or other premises owned by Lessor and located within the Project, (c) if Lessee remains in possession of the Premises, with the consent of Lessor, after the expiration of this Lease, or (d) if Base Rent is increased, whether by
agreement or operation of an escalation clause herein, then, Lessor shall pay Brokers a fee in accordance with the schedule attached to such brokerage fee agreement. 

15.2 Assumption of Obligations. Any buyer or transferee of Lessor’s interest in this Lease shall be deemed to have
assumed Lessor’s obligation hereunder. Brokers shall be third party beneficiaries of the provisions of Paragraphs 1.10, 15, 22 and 31. If Lessor fails to pay to Brokers any amounts due as and for brokerage fees pertaining to this Lease when
due, then such amounts shall accrue Interest. In addition, if Lessor fails to pay any amounts to Lessee’s Broker when due, Lessee’s Broker may send written notice to Lessor and Lessee of such failure and if Lessor fails to pay such amounts
within 10 days after said notice, Lessee shall pay said monies to its Broker and offset such amounts against Rent. In addition, Lessee’s Broker shall be deemed to be a third party beneficiary of any commission agreement entered into by and/or
between Lessor and Lessor’s Broker for the limited purpose of collecting any brokerage fee owed. 
 15.3
Representations and Indemnities of Broker Relationships. Lessee and Lessor each represent and warrant to the other that it has had no dealings with any person, firm, broker or finder (other than the Brokers, if any) in connection with this
Lease, and that no one other than said named Brokers is entitled to any commission or finder’s fee in connection herewith. Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against
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, including any costs, expenses, attorneys’ fees reasonably
incurred with respect thereto. 
 16. Estoppel Certificates. 
 (a) Each Party (as “Responding Party”) shall within 10 days after written notice from the other Party (the “Requesting Party”) execute, acknowledge and deliver to the
Requesting Party a statement in writing in form similar to the then most current “Estoppel Certificate” form published by the AIRCommercial Real Estate Association, plus such additional information, confirmation and/or statements as
may be reasonably requested by the Requesting Party. 
 (b) If the Responding Party shall fail to execute or deliver the
Estoppel Certificate within such 10 day period, the Requesting Party may execute an Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may be represented by the 

 

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 13 OF
18 








 
Requesting Party, (ii) there are no uncured defaults in the Requesting Party’s performance, and (iii) if Lessor is the Requesting Party, not more than one month’s rent has
been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Party’s Estoppel Certificate, and the Responding Party shall be estopped from denying the truth of the facts contained in said Certificate. 

(c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall within 10 days
after written notice from Lessor deliver to any potential lender or purchaser designated by Lessor such financial statements as may be reasonably required by such lender or purchaser, including but not limited to Lessee’s financial statements
for the past 3 years. All such financial statements shall be received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein set forth. 
 17. Definition of Lessor. The term “Lessor” as used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, if this is a sublease, of
the Lessee’s interest in the prior lease. In the event of a transfer of Lessor’s title or interest in the Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by
Lessor. Upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or covenants under this Lease thereafter to be performed by the
Lessor. Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined. 
 18. Severability. The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof. 

19. Days. Unless otherwise specifically indicated to the contrary, the word “days” as used in this Lease shall mean and refer to
calendar days. 
 20. Limitation on Liability. The obligations of Lessor under this Lease shall not constitute personal obligations of
Lessor or its partners, members, directors, officers or shareholders, and Lessee shall look to the Project, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse
against Lessor’s partners, members, directors, officers or shareholders, or any of their personal assets for such satisfaction. 
 21.
Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under this Lease. 
 22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous
agreement or understanding shall be effective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the
other Party to this Lease and as to the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. 

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

23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date
of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given 72 hours after the same is addressed as required herein and mailed with postage prepaid. Notices
delivered by United States Express Mail or overnight courier that guarantees next day delivery shall be deemed given 24 hours after delivery of the same to the Postal Service or courier. Notices transmitted by facsimile transmission or similar means
shall be deemed delivered upon telephone confirmation of receipt (confirmation report from fax machine is sufficient), provided a copy is also delivered via delivery or mail. If notice is received on a Saturday, Sunday or legal holiday, it shall be
deemed received on the next business day. 
 24. Waivers. 
 (a) No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default
or Breach by Lessee of the same or of any other term, covenant or condition hereof. Lessor’s consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor’s consent to, or approval of, any subsequent
or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent. 
 (b) The acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of moneys or damages due Lessor, notwithstanding
any qualifying statements or conditions made by Lessee in connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of
such payment. 
 (c) THE PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS RELATED THERETO AND
HEREBY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE. 
 25.
Disclosures Regarding The Nature of a Real Estate Agency Relationship. 
 (a) When entering into a discussion with a real
estate agent regarding a real estate transaction, a Lessor or Lessee should from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction. Lessor and Lessee acknowledge being advised
by the Brokers in this transaction, as follows: 
 (i) Lessor’s Agent. A Lessor’s agent under a listing
agreement with the Lessor acts as the agent for the Lessor only. A Lessor’s agent or subagent has the following affirmative obligations: To the Lessor: A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the
Lessor. To the Lessee and the Lessor: a. Diligent exercise of reasonable skills and care in performance of the agent’s duties, b. A duty of honest and fair dealing and good faith, c. A duty to disclose all facts known to the agent
materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information obtained from
the other Party which does not involve the affirmative duties set forth above. 
 (ii) Lessee’s Agent. An agent can
agree to act as agent for the Lessee only. In these situations, the agent is not the Lessor’s agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Lessor. An agent acting only
for a Lessee has the following affirmative obligations. To the Lessee: A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee and the Lessor: a. Diligent exercise of reasonable
skills and care in performance of the agent’s duties, b. A duty of honest and fair dealing and good faith, c. A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to,
or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any 

 

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 14 OF
18 








 
confidential information obtained from the other Party which does not involve the affirmative duties set forth above. 
 (iii) Agent Representing Both Lessor and Lessee. A real estate agent, either acting directly or through one or more associate licenses, can legally be the agent of both the Lessor and the Lessee in
a transaction, but only with the knowledge and consent of both the Lessor and the Lessee. In a dual agency situation, the agent has the following affirmative obligations to both the Lessor and the Lessee: a. A fiduciary duty of utmost care,
integrity, honesty and loyalty in the dealings with either Lesser or the Lessee, b. Other duties to the Lessor and the Lessee as stated above in subparagraphs (i) or (ii). In representing both Lessor and Lessee, the agent may not without the
express permission of the respective Party, disclose to the other Party that the Lessor will accept rent in an amount less than that indicated in the listing or that the Lessee is willing to pay a higher rent than that offered. The above duties of
the agent in a real estate transaction do not relieve a Lessor or Lessee from the responsibility to protect their own interests. Lessor and Lessee should carefully read all agreements to assure that they adequately express their understanding of the
transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advise is desired, consult a competent professional. 
 (b) Brokers have no responsibility with respect to any default or breach hereof by either Party. The Parties agree that no lawsuit or other legal proceeding involving any breach of duty, error or omission
relating to this Lease may be brought against Broker more than one year after the Start Date and that the liability (including court costs and attorneys’ fees), of any Broker with respect to any such lawsuit and/or legal proceeding shall not
exceed the fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broker’s liability shall not be applicable to any gross negligence or willful misconduct of such Broker. 

(c) Lessor and Lessee agree to identify to Brokers as “Confidential” any communication or information given Brokers that is
considered by such Party to be confidential. 
 26. No Right To Holdover. Lessee has no right to retain possession of the Premises or any
part thereof beyond the expiration or termination of this Lease. In the event that Lessee holds over, then the Base Rent shall be increased to 150% of the Base Rent applicable immediately preceding the expiration or termination. Nothing contained
herein shall be construed as consent by Lessor to any holding over by Lessee. 
 27. Cumulative Remedies. No remedy or election hereunder
shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. 
 28. Covenants and
Conditions; Construction of Agreement. All provisions of this Lease to be observed or performed by Lessee are both covenants and conditions. In construing this Lease, all headings and titles are for the convenience of the Parties only and shall
not be considered a part of this Lease. Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a
whole, as if both Parties had prepared it. 
 29. Binding Effect; Choice of Law. This Lease shall be binding upon the Parties, their
personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are
located. 
 30. Subordination; Attornment; Non-Disturbance. 
 30.1 Subordination. This Lease and any Option granted hereby shall be subject and subordinate to any ground lease, mortgage, deed of trust, or other hypothecation or security device (collectively,
“Security Device”), now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modifications, and extensions thereof. Lessee agrees that the holders of any such Security
Devices (in this Lease together referred to as “Lender”) shall have no liability or obligation to perform any of the obligations of Lessor under this Lease. Any Lender may elect to have this Lease and/or any Option granted hereby
superior to the lien of its Security Device by giving written notice thereof to Lessee, whereupon this Lease and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation
thereof. Lessor shall use commercially reasonable efforts to procure non-disturbance agreements from any current Lenders. 

30.2 Attornment. In the event that Lessor transfers title to the Premises, or the Premises are acquired by another upon the
foreclosure or termination of a Security Devise to which this Lease is subordinated (i) Lessee shall, subject to the non-disturbance provisions of Paragraph 30.3, attorn to such new owner, and upon request, enter into a new lease, containing
ail of the terms and provisions of this Lease, with such new owner for the remainder of the term hereof, or, at the election of the new owner, this Lease will automatically become a new lease between Lessee and such new owner, and (ii) Lessor
shall thereafter be relieved of any further obligations hereunder and such new owner shall assume all of Lessor’s obligations, except that such new owner shall not: (a) be liable for any act or omission of any prior lessor or with respect
to events occurring prior to acquisition of ownership; (b) be subject to any offsets or defenses which Lessee might have against any prior lessor, (c) be bound by prepayment of more than one month’s rent, or (d) be liable for the
return of any security deposit paid to any prior lessor which was not paid or credited to such new owner. 
 30.3
Non-Disturbance. With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee’s subordination of this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a
“Non-Disturbance Agreement”) from the Lender which Non-Disturbance Agreement provides that Lessee’s possession of the Premises, and this Lease, including any options to extend the term hereof, will not be disturbed so long as
Lessee is not in Breach hereof and attorns to the record owner of the Premises. Further, within 60 days after the execution of this Lease, Lessor shall, if requested by Lessee, use its commercially reasonable efforts to obtain a Non-Disturbance
Agreement from the holder of any pre-existing Security Device which is secured by the Premises. In the event that Lessor is unable to provide the Non-Disturbance Agreement within said 60 days, then Lessee may, at Lessee’s option, directly
contact Lender and attempt to negotiate for the execution and delivery of a Non-Disturbance Agreement. 
 30.4
Self-Executing. The agreements contained in this Paragraph 30 shall be effective without the execution of any further documents; provided, however, that, upon written request from Lessor or a Lender in connection with a sale, financing or
refinancing of the Premises, Lessee and Lessor shall execute such further writings as may be reasonably required to separately document any subordination, attornment and/or Non-Disturbance Agreement provided for herein. 

31. Attorneys’ Fees. If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contract or
equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys’ fees. Such fees may be awarded in the same suit or recovered in a
separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term, “Prevailing Party” shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as
the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys’ fees award shall not be computed in accordance with any court fee schedule, but shall be such
as to fully reimburse all attorneys’ fees reasonably incurred. In addition, Lessor shall be entitled to attorneys’ fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in
connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence for such services and consultation). 

32. Lessor’s Access; Showing Premises; Repairs. Lessor and Lessor’s agents shall have the right to enter the Premises at any time, in
the case of an emergency, and otherwise at reasonable times after reasonable prior notice for the purpose of showing the same to prospective purchasers, lenders, or tenants, and making such alterations, repairs, improvements or additions to the
Premises as Lessor may 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

  

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 15 OF
18 








 
adverse effect on Lessee’s use of the Premises. All such activities shall be without abatement of rent or liability to Lessee. 
 33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessor’s prior written consent. Lessor shall not be obligated to exercise any standard
of reasonableness in determining whether to permit an auction. 
 34. Signs. Lessor may place on the Premises ordinary “For
Sale” signs at any time and ordinary “For Lease” signs during the last 6 months of the term hereof. Lessor may not place any sign on the exterior of the Building that covers any of the windows of the Premises. Except for ordinary
“For Sublease” signs which may be placed only on the Premises, Lessee shall not place any sign upon the Project without Lessor’s prior written consent. All signs must comply with all Applicable Requirements. 

35. Termination; Merger. Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the
mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all
existing subtenancies. Lessor’s failure within 10 days following any such event to elect to the contrary by written notice to the holder of any such lesser interest, shall constitute Lessor’s election to have such event constitute the
termination of such interest. 
 36. Consents. Except as otherwise provided herein, wherever in this Lease the consent of a Party is
required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lessor’s actual reasonable costs and expenses (including but not limited to architects’, attorneys’, engineers’ and other
consultants’ fees) incurred in the consideration of, or response to, a request by Lessee for any Lessor consent, including but not limited to consents to an assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid
by Lessee upon receipt of an invoice and supporting documentation therefor. Lessor’s consent to any act, assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists, nor shall such
consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such consent. The failure to specify herein any particular condition to Lessor’s consent shall
not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. In the event that either Party disagrees with any
determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail within 10 business days following such request. 

37. Guarantor. 
 37.1
Execution. The Guarantors, if any, shall each execute a guaranty in the form most recently published by the AIR Commercial Real Estate Association. 
 37.2 Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon request to provide: (a) evidence of the execution of the guaranty, including the authority of
the party signing on Guarantor’s behalf to obligate Guarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the making of such guaranty, (b) current financial statements,
(c) an Estoppel Certificate, or (d) written confirmation that the guaranty is still in effect. 
 38. Quiet Possession. Subject
to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on Lessee’s part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during
the term hereof. 
 39. Options. If Lessee is granted an Option, as defined below, then the following provisions shall apply. 

39.1 Definition. “Option” shall mean: (a) the right to extend or reduce the term of or renew this Lease or
to extend or reduce the term of or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to purchase, the right of
first offer to purchase or the right of first refusal to purchase the Premises or other property of Lessor. 
 39.2 Options
Personal To Original Lessee. Any Option granted to Lessee in this Lease is personal to the original Lessee, and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of
the Premises and, if requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or subletting. 
 39.3 Multiple Options. In the event that Lessee has any multiple Options to extend or renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised.

 39.4 Effect of Default on Options. 
 (a) Lessee shall have no right to exercise an Option: (i) during the period commencing with the giving of any notice of Default and continuing until said Default is cured, (ii) during the period
of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii) during the time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given 3 or more notices of separate Default, whether
or not the Defaults are cured, during the 12 month period immediately preceding the exercise of the Option. 
 (b) The period of
time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee’s inability to exercise an Option because of the provisions of Paragraph 39.4(a). 

(c) An Option shall terminate and be of no further force or effect, notwithstanding Lessee’s due and timely exercise of the Option,
if, after such exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee fails to pay Rent for a period of 30 days after such Rent becomes due (without any necessity of Lessor to give notice thereof),
or (ii) if Lessee commits a Breach of this Lease. 
 40. Security Measures. Lessee hereby acknowledges that the Rent payable to
Lessor hereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. As part of the Tenant Improvements, Lessor shall Install a card access system for access to
the Premises. Lessee assumes all responsibility for the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third parties. In the event, however, that Lessor should elect to provide security services, then
the cost thereof shall be an Operating Expense. 
 41. Reservations. 

(a) Lessor reserves the right: (i) to grant, without the consent or joinder of Lessee, such easements, rights and dedications that
Lessor deems necessary, (ii) to cause the recordation of parcel maps and restrictions, (iii) to create and/or install new utility raceways, so long as such easements, rights, dedications, maps, restrictions, and utility raceways do not
unreasonably interfere with the use of the Premises by Lessee. Lessor may also: change the name, address or title of the Building or Project upon at least 90 days prior written notice; provide and install, at Lessee’s expense, Building standard
graphics on the door of the Premises and such portions of the Common Areas as Lessor shall reasonably deem appropriate; grant to any lessee the exclusive right to conduct any business as long as such exclusive right does not conflict with any rights
expressly given herein; and to place such signs, notices or displays as Lessor reasonably deems necessary or advisable upon the roof, exterior of the Building or the Project or on signs in the Common Areas. Lessee agrees to sign any documents
reasonably requested by Lessor to effectuate such rights. 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. 
 (b) Lessor also reserves the right to move Lessee to other space of comparable size in the
Building or Project. Lessor must provide at least 45 days prior written notice of such move, and the new space must contain improvements of comparable quality to those contained 

 

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 16 OF
18 








 
within the Premises, Lessor shall pay the reasonable out of pocket costs that Lessee incurs with regard to such relocation, including the expenses of moving and necessary stationary
revision costs. In no event, however, shall Lessor be required to pay an amount in excess of two months Base Rent. Lessee may not be relocated more than once during the term of this Lease. 

(c) Lessee shall not: (i) use a representation (photographic or otherwise) of the Building or Project or their name(s) in
connection with Lessee’s business; or (ii) suffer or permit anyone, except in emergency, to go upon the roof of the Building. 
 42. Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Party against whom the
obligation to pay the money is asserted shall have the right to make payment “under protest” and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of said Party to institute suit for
recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally required to
pay. A Party who does not initiate suit for the recovery of sums paid “under protest” within 6 months shall be deemed to have waived its right to protest such payment. 
 43. Authority; Multiple Parties; Execution 
 (a) If either Party hereto is
a corporation, trust, limited liability company, partnership, or similar entity, each individual executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf.
Each Party shall, within 30 days after request, deliver to the other Party satisfactory evidence of such authority. 
 (b) If
this Lease is executed by more than one person or entity as “Lessee” or as “Lessor,”, each such person or entity shall be jointly and severally liable hereunder. It is agreed that any one of the named parties
Lessees shall be empowered to execute any amendment to this Lease, or other document ancillary thereto and bind all of the named LesseesParties, and the parties Lessor may rely on the same as if all
of the named PartiesLessees had executed such document. The entities Included as “Lessor” are executing this Lease and are responsible hereunder. 
 (c) This Lease may be executed by the Parties in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 

44. Conflict. Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisions shall be controlled by the
typewritten or handwritten provisions. 
 45. Offer. Preparation of this Lease by either party or their agent and submission of same to
the other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto. 
 46. Amendments. This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification. As long as they do not materially change Lessee’s obligations
hereunder, Lessee agrees to make such reasonable nonmonetary modifications to this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing or refinancing of the Premises. 

47. Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR
ARISING OUT OF THIS AGREEMENT. 
 48. Arbitration of Disputes. An Addendum requiring the Arbitration of all disputes between the
Parties and/or Brokers arising out of this Lease  ̈ is þ is not attached to this Lease. 
 49. Americans with Disabilities Act. Since compliance with the Americans with Disabilities Act (ADA) is dependent upon Lessee’s specific use of the Premises, Lessor makes no warranty or
representation as to whether or not the Premises comply with ADA or any similar legislation. In the event that Lessee’s specific use of the Premises requires modifications or additions to the Premises in order to be in ADA compliance, Lessee
agrees to make any such necessary modifications and/or additions at Lessee’s expense. 
 LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED
THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE
COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES. 
 ATTENTION: NO
REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:

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

2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO:
THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING AND SIZE OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT AND THE SUITABILITY OF THE PREMISES
FOR LESSEE’S INTENDED USE. 
 WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE
MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES ARE LOCATED. 
 The parties hereto have executed this
Lease at the place and on the dates specified above their respective signatures. 
  

							
	Executed at:	 	 San Francisco, CA
	  	Executed at:	 	 New Haven, CT



							
	On:	 	 05/26/10
	 	  On:	 	 05/26/10



 

			
	By LESSOR:	 	 By LESSEE:

		
	 GSR II, LLC
	 	 HIGHER ONE PAYMENTS, INC.

	  
	 	  



 

							
	By:	 	 /s/ David Currie
	 	  By:	 	 /s/ Mark Volchek



							
	Name Printed:	 	 David Currie
	 	  Name Printed:	 	 Mark Volchek



 

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 17 OF
18 








 

			
	Title:	 	 Manager



			
	
	LM SWAN WAY, LLC
		
	By:	 	 /s/ Lance Miller



			
	Name Printed:	 	 Lance Miller



			
	Title:	 	  



			
	Address:	 	 c/o GRAHAM STREET REALTY



			
	 37 GRAHAM STREET, SUITE 200B

	 SAN FRANCISCO, CA 94129

	Telephone:(415)	 	 561-6800



			
	Facsimile:(415)	 	 561-6801



			
	Federal ID No.	 	  



			
	
	LESSOR’S BROKER:
	
	  



			
		
	Attn:	 	  



			
	Address:	 	  



			
	  

	  

	Telephone:(        )	 	  



			
	Facsimile:(        )	 	  



			
	Broker/Agent DRE License #:	 	  

	  

	
 






			
	Title:	 	 CFO



			
	
	


			
		
	By:	 	  



			
	Name Printed:	 	  



			
	Title:	 	  



			
	Address:	 	 80 SWAN WAY



			
	 OAKLAND, CA 94621

	  



			
	Telephone:(        )	 	  



			
	Facsimile:(        )	 	  



			
	Federal ID No.	 	  



			
	
	 LESSEE’S BROKER:

	
	  



			
		
	Attn:	 	  



			
	Address:	 	  



			
	  

	  

	Telephone:(        )	 	  



			
	Facsimile:(        )	 	  



			
	Broker/Agent DRE License #:	 	  

	  

	
 




 

  
 NOTICE: These forms are often
modified to meet changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: AIR Commercial Real Estate Association, 800 W 6th Street, Suite 800, Los Angeles, CA 90017. Telephone No.
(213) 687-8777. Fax No.: (213) 687-8616. 
 ©Copyright 1999-By AIR Commercial Real Estate Association.

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

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©1999 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OFG-8-1/10E


  
 PAGE 18 OF
18 








 Exhibit A: 
 Lessor: 
 GSR II, LLC and LM Swan Way, LLC (Please see Exhibit A for Lessor description)

 GSR II, a Delaware limited liability company, as to an undivided 20% interest, and LM Swan Way, LLC, a Delaware limited liability company, as
to an undivided 80% interest. 







 RENT ADJUSTMENT(S) 

LEASE ADDENDUM 
  

			
	Dated: May 21, 2010	  	
		
	By and Between (Lessor)	  	GSR II, LLC and LM Swan Way, LLC (please see Exhibit A for Lessor description)
		
	(Lessee)	  	Higher One Payments, Inc.
		
	Address of Premises:	  	80 Swan Way, Suite 200 and 201, Oakland, CA 94621

  

	A.	RENT ADJUSTMENTS: 

 The
monthly rent for each month of initial term of the Lease shall be as indicated below: 
  

			
	 	  	The New Base Rent shall be:
		
	 Suite 200 Premises
	  	 Suite 200 Premises

	 8.1.2010 - 1.31.2011
	  	$0.00 RSF per month ($0.00
	 2.1.2011 - 7.31.2012
	  	$1.25 RSF per month ($11,700)
	 8.1.2012 - 7.31.2013
	  	$1.28 RSF per month ($11,934)
	 8.1.2013 - 7.31.2014
	  	$ 1.30 RSF per month ($12,173)
	 8.1.2014 - 7.31.2015
	  	$1.33 RSF per month ($12,416)
	 8.1.2015 - 1.31.2016
	  	$1.35 RSF per month ($12,664)
		
	 Suite 201 Premises
	  	 Suite 201 Premises

	 8.1.2010 - 7.31.2011
	  	$0.00 RSF per month ($0.00)
	 8.1.2011 - 7.31.2012
	  	$0.63 RSF per month ($1,500)
	 8.1.2012 - 7.31.2013
	  	$ 1.28 RSF per month ($3,072)
	 8.1.2013 - 7.31.2014
	  	$1.30 RSF per month ($3,120)
	 8.1.2014 - 7.31.2015
	  	$1.33 RSF per month ($3,182)
	 8.1.2015 - 1.31.2016
	  	$1.35 RSF per month ($3,240)

  

	B.	NOTICE: 

 Unless
specified otherwise herein, notice of any such adjustments, other than Fixed Rental Adjustments, shall be made as specified in paragraph 23 of the Lease. 







 Addendum to Lease 
 This Addendum to Lease modified the Standard Multi-Tenant Office Lease – Gross (“Lease”) between GSR II, LLC and LN Swan Way, LLC (collectively “Lessor”) and Higher One Payments,
Inc. (“Lessee”). Each of the following paragraphs shall be inserted in the Lease in the order of numbering and lettering established by the Lease. 
 3.3(a) If the Lessor does not cause Substantial Completion of the Premises to be achieved on or before August 1, 2010 (the “Delivery Date”) as such Delivery Date may be extended by any of
the causes of delays described in Section 5.2.1 through 5.2.8 of the Work Letter, then Lessor shall pay to Lessee the sum of $281.30 per day from the Delivery Date to the date of Substantial Completion of the Premises. 

4.2(h) Operating Expense Exclusions. Notwithstanding anything in this Lease to the contrary, the following expenses are excluded
from Operating Expenses: 
 (i) depreciation and amortization; 

(ii) tenant improvement expenses; 
 (iii) expenses incurred by Lessor for repairs or other work occasioned by fire, windstorm, or other insurable casualty or condemnation, to the extent insured; 

(iv) expenses incurred by Lessor to lease space to new tenants or to retain existing tenants including leasing commissions, advertising
and promotional expenditures; 
 (v) expenses incurred by Lessor to resolve disputes with tenants, enforce or negotiate lease
terms with prospective or existing tenants or in connection with any financing, sale or syndication of the Project; 
 (vi)
interest, principal, points and fees, amortization or other costs associated with any debt and rent payable under any lease to which this Lease is subject and all costs and expenses associated with any such debt or lease and any ground lease rent,
irrespective of whether this Lease is subject or subordinate thereto; 
 (vii) expenses incurred for the repair, maintenance or
operation of any pay parking garage, including but not limited to salaries and benefits of any attendants, electricity, insurance and taxes and any expense to construct such a garage; 

(viii) expenses for the replacement of any item to the extent that the expense is paid for by any applicable warranty; 

  
 -2-









 (ix) cost to correct any penalty or fine incurred by Lessor due to Lessor’s violation
of any federal, state, or local law or regulation and any interest or penalties due for late payment by Lessor of any of the Operating Expenses; 
 (x) cost of correcting any latent defects or original design defects in the Project construction, materials, or equipment; 
 (xi) expenses for any item or service which the Lessor does not provide hereunder and the cost of which Lessee pays directly to a third party or separately reimburses Lessor and expenses incurred by
Lessor to the extent the same are reimbursed from any other tenants, occupants of the property, or third parties; 
 (xii)
expenses for any item or service not provided to Lessee but exclusively to certain other tenants in the Project; 
 (xiii)
salaries of (a) employees above the grade of building superintendent or building manager, and (b) that portion of employee expenses for employees whose time is not spent directly and solely in the operation of the Project; 

(xiv) Lessor’s general corporate overhead and administrative expenses except if it is solely for the Project. 

(xv) fees paid to affiliates of Lessor to the extent that such fees exceed the customary amount charged for the services provided;

 4.2(i) Audit Rights. Any objection to a Lessor’s statement delivered pursuant to Paragraph 4.2(f), or to any
information reported therein, shall be deemed waived if not raised by written notice to Lessor within ninety (90) days following the later of delivery of such Lessor’s statement. Following the giving of such notice, Tenant shall have the
right during Lessor’s regular business hours and on reasonable prior notice, to inspect, at the location of Lessor’s accounting records, at Tenant’s sole cost, Lessor’s books and records with respect to Operating Expenses and
Real Property Taxes for the calendar year to which such Lessor’s statement relates, on the terms and conditions set forth below: 
 (i) The inspection of Lessor’s books and records may be conducted by an employee of Tenant, or a reputable certified public accountant (which accountant is a member of a reputable independent
nationally or regionally recognized certified public accounting firm, who has had previous experience in reviewing financial operating records of Lessors of office buildings; provided that such accountant is not retained by Tenant on a contingency
fee basis and is not a tenant of the Building). The inspection of Lessor’s books and records must be completed not later than sixty (60) days after such books and records are made available to Tenant, and any audit report prepared by
Tenant’s auditors shall be delivered concurrently to Lessor and Tenant within thirty (30) days after the end of such sixty (60) day period. 
 (ii) If, after such inspection of Lessor’s books and records, Tenant disputes the amount of Operating Expenses and/or Real Property Taxes for the calendar year


  
 -3-









 
under inspection, Lessor and Tenant shall meet and attempt in good faith to resolve the dispute. If the parties are unable to resolve the dispute within sixty (60) days after completion of
Tenant’s inspection, then Tenant shall have the right to submit the dispute to arbitration, in the City and County of San Francisco, which right shall be exercised, if at all, by delivering a notice of election to arbitrate to Lessor not later
than the last day of the sixty (60) day period. Lessor and Tenant shall agree, within fifteen (15) days after Tenant’s delivery of the arbitration election, to retain an arbitrator who shall be an unaffiliated real estate attorney
with at least ten (10) years of experience representing lessors and lessees in the leasing of office space in the City and County of San Francisco. If Lessor and Lessee fail to agree upon and appoint an arbitrator, then the appointment of the
arbitrator shall be made by the Presiding Judge of the Superior Court, or, if he or she refuses to act, by any judge having jurisdiction over the parties. Such arbitrator shall have the right to retain an unaffiliated, reputable certified public
accountant who is a member of a reputable independent nationally or regionally recognized certified public accounting firm, with at least ten (10) years’ of experience representing landlords and tenants in reviewing financial operating
records of landlords of office buildings in the County of San Francisco as an expert to consult with the arbitrator with respect to the dispute. 
 (iii) The arbitration shall be limited to the determination of the appropriate amount of Operating Expenses and Real Property Taxes relevant to the subject of the dispute, for the calendar year under
review. The decision of the arbitrator shall be delivered simultaneously to Lessor and Lessee, and shall be final and binding upon Lessor and Lessee. 
 (iv) If the arbitrator determines that the amount of Operating Expenses or Real Property Taxes, billed to Lessee was incorrect, the appropriate party shall pay to the other party the deficiency or
overpayment, as applicable, within thirty (30) days following delivery of the arbitrator’s decision, without interest. All costs and expenses of the arbitration shall be paid by Lessee unless the final determination in such arbitration is
that Lessor overstated Operating Expenses and/or Real Property Taxes for the applicable calendar year by more than five percent (5%) of the originally reported expenses, in which case Lessor shall pay all costs and expenses of the arbitration.

 (v) Lessee shall keep any information gained from any such audit (including Lessee’s review or audit of Lessor’s
books and record) confidential, and shall cause Lessee’s employees and agents to keep such information confidential, and shall not disclose it to any other party, except to its attorneys and accountants, in connection with litigation, or except
as required by law. 
 (vi) Lessee’s exercise of its audit rights shall not relieve Lessee of its obligation to pay
disputed amounts, and Lessee’s rights under this section may only be exercised by Lessee if Lessee is not in default under this Lease during the period that Lessee is exercising its rights hereunder. 

(vii) In no event shall this section be deemed to allow any review of any of Lessor’s records by any subtenant of Lessee. Lessee
agrees that, absent fraud or gross negligence, this section shall be the sole method to be used by Lessee to dispute concerning the subject matter herein payable or not payable by Lessee pursuant to the terms of this Lease, and Lessee hereby waives
any other rights at law or in equity relating thereto. 

  
 -4-









 8.7(b) Lessor’s Indemnity. Lessor shall indemnify, protect, defend and hold harmless the
Premises, Lessee and its agents, Lessee’s sublessee’s or assignees, partners, and lenders, from and against any and all claims and/or damages, liens, judgments, penalties, attorneys’ and consultants’ fees, expenses and/or
liabilities caused solely by Lessor’s gross negligence or willful misconduct. In any action or proceeding is brought against Lessee by reason of any of the foregoing matters, Lessor shall upon notice, defend the same at Lessor’s expense by
counsel reasonably satisfactory to Lessee and Lessee shall cooperate with Lessor in such defense. Lessee need not have first paid any such claim in order to be defended or indemnified. 
 12.1(b) Subject to the provisions of Paragraph 12.1(c), Lessee shall have the right to assign this Lease or sublet the Premises, without Lessor’s consent, to a subsidiary, affiliate or other
organization in which Lessee is a majority owner or controlling shareholder or to the surviving entity in a merger, acquisition divestiture or consolidation, provided that Lessee utilizes a form for the same which is approved by Lessor in advance
and pursuant to which the transferee assumes all of Lessee’s obligations hereunder and provided, further, that a fully executed copy of the transfer document is provided to Lessor within ten (10) days following the date on which the
transfer is effective. 
 55. Right to Lease. (a) Subject to the provisions of Paragraph 39, Lessee shall have a continuing right to
lease (the “Right to Lease”) the space described in subparagraph (b) if such space becomes available during the term of this Lease. 
 (b) This Right to Lease shall only apply to the following space in the Project located adjacent to the Premises on the 2nd floor of 80 Swan Way, Oakland, CA 94621 (the “Adjacent Space”). References to the “Adjacent Space”
shall refer to the portion in all of such space which is becoming available and which is the subject of a written notice (“Offer Notice”) from Lessor under this Right to Lease. 
 (c) Prior to offering or leasing the Adjacent Space to anyone else Lessor shall give Lessee and Offer Notice of the availability of the Adjacent Space and the date the existing tenant or occupant, if any,
is expected to vacate such space. Such notice shall set forth the basic economic terms, including, but not limited to, Lessor’s determination of the monthly Base Rent, an improvement allowance, if any, and all other economic terms and
conditions (collectively, the “Lessor’s Economic Terms”), upon which Lessor is willing to lease the Adjacent Space. 
 (d) For a
period of ten (10) business days after the Lessor’s Economic Terms are given to Lessee in a notice from Lessor, time being of the essence, Lessee shall have the right to give written notice to Lessor of Lessee’s exercise of its Right
to Lease the Adjacent Space which is the subject of the Offer Notice. Lessee’s notice must irrevocably elect to lease the Adjacent Space which is the subject of Lessor’s Offer Notice and may (i) accept the Lessor’s Economic Terms
or (ii) reject such Lessor’s Economic Terms and propose alternative economic terms (“Lessee’s Economic Terms”) which shall be set forth in the Lessee’s notice exercising the Right to Lease. If Lessee’s exercise
notice does not unequivocally accept the Lessor’s Economic Terms or 

  
 -5-









 
propose Lessee’s Economic Terms, then the Lessee shall be deemed to have accepted the Lessor’s Economic Terms. If Lessee proposes Lessee’s Economic Terms, the parties shall attempt
to agree on the economic terms which shall apply. If the parties do not reach agreement within ten (10) days, then either party may select a real estate broker to act as an arbitrator and shall notify the other party of such selection. Upon
receipt of such notice selecting such broker, the party receiving the notice may select another broker by giving written notice of such selection within five (5) days after the notice selecting the first broker is received. If a second broker
is timely selected, then the two brokers selected shall promptly, without conferring with or receiving any direction from the Lessor or Lessee, select a third broker. If a second broker is not timely selected, then the first broker selected shall
act as the sole arbitrator. The arbitrator or arbitrators, as the case may be, shall, within thirty (30) days after appointment of the first (or only) broker, decide whether Lessor’s Economic Terms or Lessee’s Economic Terms are
closer to the fair market rental value of the Adjacent Space which was the subject of the Offer Notice and, within such thirty (30) day period shall so advise the Lessor and Lessee in writing. The written decision shall be conclusive and the
economic terms selected as being closer to fair market rental value of the Adjacent Space shall be the terms on which the Adjacent Space which was the subject of the Offer Notice is leased to the Lessee. If Lessee timely exercises its Right to Lease
as provided herein, the parties will promptly execute an amendment to this Lease to include the Adjacent Space in the Premises and to document the lease terms thereof. Failure to exercise such an amendment shall not prevent addition of the Adjacent
Space to the Premises on the terms proposed, agreed to or selected, as applicable, in accordance with the foregoing provisions. If Lessor has not timely received Lessee’s notice electing to lease the Adjacent Space which was the subject of the
Offer Notice, Lessee shall be conclusively presumed to have elected not to lease the Adjacent Space and, subject to subparagraph (e) below, Lessor may thereafter freely lease the Adjacent Space to any prospective tenant for terms which are the
same as or different than the Lessor’s Economic Terms without having to re-offer the space to Lessee. 
 (e) If Lessor gives an Offer
Notice to Lessee on or before November 1, 2010 and if some other party leases the space which is the subject of the Offer Notice, then the definition of Adjacent Space to which the right described in this Paragraph 55 applies shall be modified
to include space on the first floor of the Building of not less than 3,000 rentable square feet and not more than 5,000 rentable square feet which has all of the following characteristics: (i) the space is vacant and located on the first floor
of the Building, (ii) the space is not subject to any lease or letter of intent and is not the subject of correspondence with any prospective tenant, or with the agent or broker of such prospective tenant, indicating an interest in pursuing
lease negotiations on such space, and (iii) the space has been identified as the Adjacent Space to which this Paragraph 55 shall thereafter apply in a written notice from Lessor to Lessee. Lessor has not made any representation to Lessee that
any space satisfying the criterion in the preceding sentence will be available and has no obligation to refrain from leasing or negotiating to lease space on the first floor of the Building so that space satisfying such criteria will be available.
Lessor shall give the notice described in clause (iii) of this subparagraph (e) to Lessee within thirty (30) days after a request by Lessee made after the initial Adjacent Space is leased to another tenant which notice from Lessor
shall identify the space, if any, which satisfies the criteria set forth in clauses (i) and (ii) of this subparagraph (e). 

  
 -6-









 WORK LETTER 
 This Work Letter shall set forth the terms and conditions relating to the construction of the Tenant Improvements in the Premises. This Work Letter is essentially organized chronologically and addresses
the issues of the construction of the Premises, in sequence, as such issues will arise during the actual construction of Tenant Improvements, as defined below, in the Premises. All references in this Work Letter to Articles or Sections of “this
Lease” shall mean the relevant portion of the Standard Multi-Lessee Office Lease – Gross (“Lease”) between GSR II, LLC and LM Swan Way, LLC (collectively Lessor”) and Higher One Payments, Inc. (“Lessee”) of which
this Work Letter is a part, and all references in this Work Letter to Sections of “this Work Letter” shall mean the relevant portion of Sections 1 through 6 of this Work Letter. 

SECTION 1 

PLANS AND SPECS FOR THE PREMISES 
 Lessor and Lessee have approved that certain space plan for the Premises prepared by Ware Malcomb, dated May 6, 2010, Scheme 01_B and 80 Swan Way, Higher One – Tenant Improvements, Scope of
Work (collectively the “Plans and Specs”) a copy of which is attached as Work Letter Schedule 1. Immediately following Lessee’s execution and delivery of this Lease, Lessee shall cooperate in good faith with Lessor’s
architects and engineers to supply such information as is necessary to allow the Lessor’s architects and engineers to complete any required architectural and engineering drawings for the Premises. Lessor shall construct the improvements in the
Premises (the “Tenant Improvements”) pursuant to the Plans and Specs. Lessee shall make no changes or modifications to the Plans and Specs without the prior written consent of Lessor, which consent may be withheld in Lessor’s sole
discretion if such change or modification would directly or indirectly delay the “Substantial Completion,” as that term is defined in Section 5.1 of this Work Letter, of the Premises or increase the cost of constructing the Tenant
Improvements. 
 SECTION 2 
 IMPROVEMENT DEPOSIT BY LESSEE 
 Upon Lessee’s execution of this Lease,
Lessee shall deliver to Lessor cash in an amount (the “Improvement Deposit”) equal to Two Hundred Eighty Four Thousand, Nine Hundred Forty-Four and 80/100 ($284,944.80). The Improvement Deposit shall be disbursed by Lessor for the design
and construction of the Tenant Improvements. If the Lease is terminated before the Tenant Improvements are completed, then Lessor shall be entitled to retain the unexpended portion of the Improvement Deposit as consideration for entering into the
Lease, which amount shall be deemed to have been earned and fully payable upon execution of the Lease. In the event that after Lessee’s execution of this Lease, any revisions, changes, or substitutions shall be made to (i) the Plans and
Specs, or (ii) the Tenant Improvements, or in the event that Lessee requests revisions, changes, or substitutions in the work described in the Plans and Specs then any additional costs which arise in connection with such revisions, changes or
substitutions shall be 

  
 -7-









 
paid by Lessee to Lessor immediately upon Lessor’s request as an addition to the Improvement Deposit. 
 SECTION 3 
 CONTRACTOR’S WARRANTIES AND GUARANTIES 

Lessor hereby assigns to Lessee all warranties and guaranties by the contractor who constructs the Tenant Improvements (the
“Contractor”) relating to the Tenant Improvements, and Lessee hereby waives all claims against Lessor relating to, or arising out of the construction of, the Tenant Improvements. 

SECTION 4 

LESSEE’S COVENANTS 
 Lessee hereby indemnifies Lessor for any loss, claims, damages or delays arising from the actions of Lessee’s space planner/architect on the Premises or in the Building. In addition, immediately
after the “Substantial Completion” of the Premises, as that term is defined in Section 5.1 of this Work Letter, Lessee shall have prepared and delivered to the Building a copy of the record set of plans and specifications (including
all working drawings) for the Tenant Improvements. 
 SECTION 5 

COMPLETION OF THE TENANT IMPROVEMENTS: 
 LEASE COMMENCEMENT DATE 
 5.1 Ready for Occupancy. For purposes of
this Lease, “Substantial Completion” of the Premises shall occur upon the completion of construction of the Tenant Improvements in the Premises pursuant to the Plans and Specs (as reasonably determined by Lessor), with the exception of any
punch list items, and any Lessee fixtures, telephones and computers and any cabling related thereto, photocopy machines, work-stations (including any related fixture and/or equipment electrification), built-in furniture, systems (including security
and other Lessee systems) or equipment (including any related electrification) to be installed by Lessee or under the supervision of Contractor. 
 5.2 Delay of the Substantial Completion of the Premises. Except as provided in this Section 5.2, the Lease Commencement Date shall occur on the date of Substantial Completion of the Tenant
Improvements as described in Section 5.1 above. Delay of the Commencement Date shall not extend the Expiration Date of the Lease. If there shall be a delay or there are delays in the Substantial Completion of the Tenant Improvements as a
direct, indirect, partial, or total result of: 
 5.2.1 Lessee’s failure to timely approve any matter requiring
Lessee’s approval; 
 5.2.2 A breach by Lessee of the terms of this Work Letter or the Lease; 

  
 -8-









 5.2.3 Lessee’s request for changes in the Plans and Specs or the Tenant Improvements;

 5.2.4 Changes in any of the Plans and Specs because the same do not comply with applicable laws; 

5.2.5 Lessee’s requirement for materials, components, finishes or improvements which are not available in a commercially reasonable
time given the anticipated date of Substantial Completion of the Tenant Improvements, as set forth in the Lease, or which are different from, or not included in, Lessor’s standard improvement package items for the Building in which the Premises
are located; 
 5.2.6 Changes to the base, shell and core work of the Building required by the Plans and Specs; 

5.2.7 Any other acts or omissions of Lessee, or its agents, or employees; or, 

5.2.8 Any event or occurrence which is not within the reasonable control of the Lessor, including without limitation, any action by any
labor union, any change in law or any direction given by any governmental agency or bureau, or any person acting on its behalf, any casualty, theft or vandalism or any unavailability of any materials. 

then, notwithstanding anything to the contrary set forth in the Lease or this Work Letter and regardless of the actual date of the Substantial Completion
of the Premises, the date of Substantial Completion of the Premises shall be deemed to be the date the Substantial Completion of the Premises would have occurred if no Lessee delay or delays, as set forth above, had occurred. If the sole basis of
delay in Substantial Completion of the Premises is a delay caused by any event or occurrence described in Section 5.2.8 (and not in any of Sections 5.2.1 through 5.2.7 inclusive) then the payment of rent shall not commence on the Commencement
Date, but on the date of actual Substantial Completion of the Premises. 
 SECTION 6 

MISCELLANEOUS 
 6.1 Lessee’s Entry Into the Premises Prior to Substantial Completion. Provided that Lessee and its agents do not interfere with Contractor’s work in the Building and the Premises,
Contractor shall allow Lessee access to the Premises prior to the Substantial Completion of the Premises for the purpose of Lessee installing overstandard equipment or fixtures (including Lessee’s data and telephone equipment) in the Premises.
Prior to Lessee’s entry into the Premises as permitted by the terms of this Section 6.1, Lessee shall submit a schedule to Lessor and Contractor, for their approval, which schedule shall detail the timing and purpose of Lessee’s
entry. Lessee shall hold Lessor harmless from and indemnify, protect and defend Lessor against any loss or damage to the Building or Premises and against injury to any persons caused by Lessee’s actions pursuant to this Section 6.1.


  
 -9-









 6.2 Freight Elevators. Lessor shall, consistent with its obligations to other tenants
of the Building, make the freight elevator reasonably available to Lessee in connection with initial decorating, furnishing and moving into the Premises. 
 6.3 Lessee’s Representative. Lessee has designated Mark Volchek as its sole representative with respect to the matters set forth in this Work Letter, who, until further notice to Lessor, shall
have full authority and responsibility to act on behalf of the Lessee as required in this Work Letter. 
 6.4 Lessor’s
Representative. Lessor has designated John Gilmore as its sole representative with respect to the matters set forth in this Work Letter, who, until further notice to Lessee, shall have full authority and responsibility to act on behalf of the
Lessor as required in this Work Letter. 
 6.5 Time of the Essence in This Work Letter. Unless otherwise indicated, all
references herein to a “number of days” shall mean and refer to calendar days. In all instances where Lessee is required to approve or deliver an item, if no written notice of approval is given or the item is not delivered within the
stated time period, at Lessor’s sole option, at the end of such period the item shall automatically be deemed approved or delivered by Lessee and the next succeeding time period shall commence. 

6.6 Lessee’s Lease Default. Notwithstanding any provision to the contrary contained in this Lease, if an event of default as
described in the Lease, or a default by Lessee under this Work Letter, has occurred at any time on or before the Substantial Completion of the Premises, then (i) in addition to all other rights and remedies granted to Lessor pursuant to the
Lease, Lessor shall have the right to cause Contractor to cease the construction of the Premises (in which case, Lessee shall be responsible for any delay in the Substantial Completion of the Premises caused by such work stoppage as set forth in
Section 5 of this Work Letter), and (ii) all other obligations of Lessor under the terms of this Work Letter shall be forgiven until such time as such default is cured pursuant to the terms of the Lease. 

6.7 Cooperation by Lessee. Lessee acknowledges that the timing of the completion of the Tenant Improvements is of the utmost
importance to Lessor. Accordingly, Lessee hereby agrees to fully and diligently cooperate with all reasonable requests by Lessor in connection with or related to the design and construction of the Tenant Improvements, and in connection therewith,
shall respond to Lessor’s requests for information and/or approvals, except as specifically set forth herein to the contrary, within two (2) business days following request by Lessor. 

  
 -10-









 Schedule 1 to Work Letter 

Plans and Specs 
 80 Swan Way 
 Higher One - Tenant Improvements 

Scope of Work 
 Demolition

  

	 	•	 	 Interior Walls 


  

	 	•	 	 Ceilings 


  

	 	•	 	 Lighting 


  

	 	•	 	 Doors (some will be re-used) 


 Carpentry & Drywall 
  

	 	•	 	 Interior Walls per architect’s space plan 


  

	 	•	 	 Level 4 finish on all walls 



Cabinets 
  

	 	•	 	 Break room cabinets and countertops per architect’s space plan 


 Insulation 
  

	 	•	 	 Building insulation per code 


 Doors, Frames, & Hardware 
  

	 	•	 	 Re-use solid core wood doors and frames (except for 6 new glass conf. room door) 



 

	 	•	 	 New exterior access door (from break room to perimeter deck) 


 Glass & Glazing 
  

	 	•	 	 Frameless glass wall and door for large executive conference room per architect’s space plan 



 

	 	•	 	 Storefront glass walls and doors for five other conference rooms per architect’s space plan 



Tile 
  

	 	•	 	 12”x12” Ceramic tile in reception area per architect’s space plan 



Acoustical Ceiling 
  

	 	•	 	 New T-bar ceiling grid 


  

	 	•	 	 New 2nd look acoustical ceiling tiles 


 Flooring 

  
 -11-










	 	•	 	 New rolled carpet, pad, and base in all office and conference room areas 



 

	 	•	 	 New VCT and base in break room, printing/shipping, closet, and storage room 



 

	 	•	 	 New static free VCT and base in server room 


 Painting 
  

	 	•	 	 Paint (3 coats) all interior walls 


  

	 	•	 	 2 color scheme (base color + accent walls) 


 Fire extinguishers & alarm 
  

	 	•	 	 Install 4 new fire extinguishers 


  

	 	•	 	 Disconnect and reinstall
2nd floor fire alarm 



Plumbing 
  

	 	•	 	 Install required plumbing supply and drain lines for new kitchen sink 



 

	 	•	 	 Re-use existing kitchen sink and faucet 


 HVAC 
  

	 	•	 	 Modify and expand existing ductwork, dampers, and thermostats to accommodate entire suite 



 

	 	•	 	 Testing and balancing 



Electrical 
  

	 	•	 	 104 new 2’x4’ ceiling lights (troffers) for entire suite (standard lighting per code – Title 24) 



 

	 	•	 	 13 new ceiling lights (hanging troffers) in conference rooms (standard lighting per code – Title 24) 



 

	 	•	 	 84 outlets on 38 circuits 


  

	 	•	 	 Exit and emergency lighting per code 


  

	 	•	 	 4 dedicated circuits for server room 


 Phone/Data 
  

	 	•	 	 Rough-in data and phone to each workstation, conference room, server room, break-room, file room, reception, and shipping room.



 Required Tenant Selections 
  

	•	 	 Break room cabinet and countertop colors 


  

	•	 	 Paint Colors 


  

	•	 	 Carpet Style/Color 


  

	•	 	 Tile Style/Color 


  

	•	 	 VCT Color 



  
 -12-










 

 









 

 

 OPTION(S) TO EXTEND 
 STANDARD LEASE ADDENDUM 
  

			
	Dated	  	 May 21,
2010




			
		
	By and Between (Lessor)	  	 GSR II, LLC and LM Swan Way, LLC (please see Exhibit A for Lessor
description)




			
		
	By and Between (Lessee)	  	 Higher One Payments, Inc.

		
		  	  




			
		
	Address of Premises:	  	 80 Swan Way, Oakland, Suite 200 & 201, CA 94621

		
		  	  



 Paragraph                      

 

	A.	OPTION(S) TO EXTEND: 

 Lessor hereby
grants to Lessee the option to extend the term of this Lease for one additional thirty six month period(s) commencing when the prior term expires upon each and all of the following terms and conditions: 

(i) In order to exercise an option to extend, Lessee must give written notice of such election to Lessor and Lessor must receive the same
at least 6 but not more than 9 months prior to the date that the option period would commence, time being of the essence. If proper notification of the exercise of an option is not given and/or received, such option shall automatically
expire. Options (if there are more than one) may only be exercised consecutively. 
 (ii) The provisions of paragraph 39,
including those relating to Lessee’s Default set forth in paragraph 39.4 of this Lease, are conditions of this Option. 

(iii) Except for the provisions of this Lease granting an option or options to extend the term, all of the terms and conditions of this
Lease except where specifically modified by this option shall apply. 
 (iv) This Option is personal to the original Lessee, and
cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and without the intention of thereafter assigning or subletting. 

(v) The monthly rent for each month of the option period shall be calculated as follows, using the method(s) indicated below: (Check
Method(s) to be Used and Fill in Appropriately) 
  

	 ̈	I. Cost of Living Adjustment(s) (COLA) 

  

			
	 a. On (Fill in COLA Dates):
	  	  



 
  
 the Base Rent shall be adjusted by the change, if any, from the Base Month specified below, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for (select
one):   ̈  CPI W (Urban Wage Earners and Clerical Workers) or   ̈  CPI U (All Urban Consumers), for (Fill in Urban
Area): 
  
  
 All Items (1982-1984 = 100), herein referred to as “CPI”. 
 b. The
monthly rent payable in accordance with paragraph A.l.a. of this Addendum shall be calculated as follows: the Base Rent set forth in paragraph 1.5 of the attached Lease, shall be multiplied by a fraction the numerator of which shall be the CPI of
the calendar month 2 months prior to the month(s) specified in paragraph A.l.a. above during which the adjustment is to take effect, and the denominator of which shall be the CPI of the calendar month which is 2 months prior to (select
one):   ̈  the first month of the term of this Lease as set forth in paragraph 1.3 (“Base Month”)
or   ̈   
  

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©2000 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OE-3-8/00E


  
 PAGE 1 OF 3









 (Fill in Other “Base Month”): 

 
  
 The sum so calculated shall constitute the new monthly rent hereunder, but in no event, shall any such new monthly rent be less than the rent payable for the month immediately preceding the rent
adjustment. 
 c. In the event the compilation and/or publication of the CPI shall be transferred to any other governmental
department or bureau or agency or shall be discontinued, then the index most nearly the same as the CPI shall be used to make such calculation. In the event that the Parties cannot agree on such alternative index, then the matter shall be submitted
for decision to the American Arbitration Association in accordance with the then rules of said Association and the decision of the arbitrators shall be binding upon the parties. The cost of said Arbitration shall be paid equally by the Parties.

  

	x	II. Market Rental Value Adjustment(s) (MRV) 

 a. On the first day of the extended term (Fill in MRV Adjustment Date(s)) Base Rent shall be 95% of Market Rental Value determined by the process outlined below: 

the Base Rent shall be adjusted to the “Market Rental Value” of the property as follows: 

1) Four months prior to each Market Rental Value Adjustment Date described above, the Parties shall attempt to agree upon what the new
MRV will be on the adjustment date. If agreement cannot be reached, within thirty days, then: 
 (a) Lessor and Lessee shall
immediately appoint a mutually acceptable appraiser or broker to establish the new MRV within the next 30 days. Any associated costs will be split equally between the Parties, or 

(b) Both Lessor and Lessee shall each immediately make a reasonable determination of the MRV and submit such determination, in writing,
to arbitration in accordance with the following provisions: 
 (i) Within 15 days thereafter, Lessor and Lessee shall each
select an  ̈ appraiser or x broker (“Consultant” - check one) of their choice to act as an arbitrator. The two arbitrators so appointed
shall immediately, without consulting with or receiving direction from the Party which selected the arbitrator, select a third mutually acceptable Consultant to act as a third arbitrator. 

(ii) The 3 arbitrators shall within 30 days of the appointment of the third arbitrator reach a decision as to what the actual MRV for
the Premises is, and whether Lessor’s or Lessee’s submitted MRV is the closest thereto. The decision of a majority of the arbitrators shall be binding on the Parties. The submitted MRV which is determined to be the closest to the actual
MRV shall thereafter be used by the Parties. 
 (iii) If either of the Parties fails to appoint an arbitrator within the
specified 15 days, the arbitrator timely appointed by one of them shall reach a decision on his or her own, and said decision shall be binding on the Parties. 
 (iv) The entire cost of such arbitration shall be paid by the party whose submitted MRV is not selected, ie. the one that is NOT the closest to the actual MRV. 

2) Notwithstanding the foregoing, the new MRV shall not be less than the Base Rent rent-payable for the month immediately preceding the
rent adjustment. 
 b. Upon the establishment of each New Market Rental Value: 

1) the new MRV will become the new “Base Rent” for the purpose of calculating any further Adjustments, and 

2) the first month of each Market Rental Value term shall become the new “Base Month” for the purpose of calculating any
further Adjustments. 
  

	 ̈	III. Fixed Rental Adjustment(s) (FRA) 


The Base Rent shall be increased to the following amounts on the dates set forth below: 

 

			
	On (Fill in FRA Adjustment Date(s)):	 	The New Base Rent shall be:
	  
	 	  

	  
	 	  

	  
	 	  

	  
	 	  

	  
	 	  

	  
	 	  

	  
	 	  

	  
	 	  

	  
	 	  

	  
	 	  



 

	B.	NOTICE: 

 Unless
specified otherwise herein, notice of any rental adjustments, other than Fixed Rental Adjustments, shall be made as specified in paragraph 23 of the Lease. 
  

	C.	BROKER’S FEE: 

  

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©2000 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OE-3-8/00E


  
 PAGE 2 OF 3









 The Brokers shall be paid a Brokerage Fee for each adjustment specified above in accordance
with paragraph 15 of the Lease. 
 NOTICE: These forms are often modified to meet changing requirements of law and industry needs. Always
write or call to make sure you are utilizing the most current form: AIR Commercial Real Estate Association, 800 W 6th Street, Suite 800, Los Angeles, CA 90017. Telephone No. (213) 687-8777. Fax No.: (213) 687-8616. 

 

					
	  
	 		 	  

	  
	 		 	  

	INITIALS	 		 	INITIALS

  

			
	©2000 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	  	FORM OE-3-8/00E


  
 PAGE 3 OF 3